<PAGE>
TCW/DW TOTAL RETURN TRUST Two World Trade Center, New York, New York 10048
LETTER TO THE SHAREHOLDERS January 31, 1997
DEAR SHAREHOLDER:
We are pleased to present the semiannual report for TCW/DW Total Return
Trust. The six-month period ended January 31, 1997, rewarded equity investors
with double-digit returns, albeit with some dips along the way, while the
bond market provided a poor performance. In this environment, TCW/DW Total
Return Trust was able to take advantage of both the continued strength in
equities and the volatility of the market, especially during the July
correction.
STRATEGY AND PERFORMANCE
From July 31, 1996, through January 31, 1997, TCW/DW Total Return Trust
steadily increased its exposure to common stocks and decreased its exposure
to fixed income and cash. This allowed the Fund to participate in the strong
stock market rally that continued following the July correction.
Prior to the period under review, the Fund was more defensively positioned
and was thus able to take advantage of the sharp sell-off in July. At that
time, we increased the Fund's equity exposure from 80 to 100 percent by
selling all of its fixed income securities. Since then, the stock market, as
measured by the S&P 500, has produced a total return of 24.16 percent,
compared to just 4.75 percent for the bond market, as measured by the Lehman
Brothers Government/Corporate Bond Index. During the same six-month period,
TCW/DW Total Return Trust, which is actively managed and benefited from our
strategy during the July correction, provided a total return of 26.79
percent. At the end of the period under review, the Fund was 100 percent
invested in U.S. common stocks.
The Fund has a current yield of 3 percent, which is well above the S&P 500
yield of 1.86 percent. We will continue to focus on companies with attractive
yields and strong prospects for earnings and dividend growth such as
aerospace, financial services, energy, technology and healthcare, all of
which are currently well represented in the portfolio.
<PAGE>
TCW/DW TOTAL RETURN TRUST
LETTER TO THE SHAREHOLDERS January 31, 1997, continued
LOOKING AHEAD
Opinions on the future direction of the market range from predictions of a
painful correction to those who say "this time things are different." We are
clearly of the latter opinion. Some of the factors that are different from
prior cycles are low inflation and falling interest rates in the sixth year
of an economic expansion. Also, demographic trends have caused an increase in
the savings rate and global competition has reduced wage and price pressures.
The end result has been a longer economic cycle with declining inflation,
stable interest rates, extraordinary corporate cash flow and earnings growth,
and a very positive supply/demand picture for equities. We continue to
believe that equities will outperform bonds, primarily due to the outstanding
earnings being delivered by U.S. companies. In this environment, we believe
that the Fund is well positioned to continue to provide strong returns going
forward.
We appreciate your support of TCW/DW Total Return Trust and look forward to
continuing to serve your financial needs and objectives.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
Chairman of the Board
<PAGE>
TCW/DW TOTAL RETURN TRUST
PORTFOLIO OF INVESTMENTS January 31, 1997 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (98.6%)
Aircraft & Aerospace (14.9%)
17,100 Boeing Co. ...................................................... $ 1,831,837
107,600 Coltec Industries, Inc. * ....................................... 2,152,000
Continental Airlines, Inc.
20,800 (Class B)* .................................................... 579,800
85,400 Hexcel Corp. ................................................... 1,601,250
16,300 Northrop Grumman Corp. ......................................... 1,273,437
13,300 Thiokol Corp. .................................................. 744,800
26,700 United Technologies Corp. ...................................... 1,862,325
-------------
10,045,449
-------------
Automotive (3.8%)
33,600 Chrysler Corp. ................................................. 1,171,800
33,300 Goodrich (B.F.) Co. ............................................ 1,365,300
-------------
2,537,100
-------------
Banking (11.1%)
12,600 BankAmerica Corp. .............................................. 1,406,475
18,800 Chase Manhattan Corp. .......................................... 1,739,000
11,600 Citicorp ........................................................ 1,349,950
16,200 Morgan (J.P.) & Co., Inc. ...................................... 1,668,600
4,300 Wells Fargo & Co. .............................................. 1,310,425
-------------
7,474,450
-------------
Beverages - Soft Drinks (1.5%)
28,000 PepsiCo Inc. ................................................... 976,500
-------------
Brokerage (4.5%)
17,000 Marsh & McLennan Companies, Inc. ............................... 1,831,750
14,600 Merrill Lynch & Co., Inc. ...................................... 1,230,050
-------------
3,061,800
-------------
Commercial Services (2.7%)
57,600 Corrections Corp. of America* ................................... 1,800,000
-------------
Computer Equipment (2.7%)
37,000 Storage Technology Corp. ....................................... 1,813,000
-------------
Drugs (10.1%)
24,100 Amgen Inc.* ..................................................... 1,358,637
15,800 Lilly (Eli) & Co. .............................................. 1,376,575
19,000 Merck & Co., Inc. .............................................. 1,724,250
10,500 Pfizer, Inc. ................................................... 975,187
16,700 Warner-Lambert Co. ............................................. 1,344,350
-------------
6,778,999
-------------
Electric (1.2%)
44,802 Westinghouse Electric Corp. .................................... 823,237
-------------
<PAGE>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Electronics - Defense (2.1%)
26,700 Hewlett-Packard Co. ............................................ $1,405,087
-------------
Electronics - Semiconductors/
Components (8.0%)
14,100 Applied Materials, Inc.* ....................................... 696,187
11,900 General Electric Co. ........................................... 1,225,700
14,600 Grainger (W.W.), Inc. .......................................... 1,127,850
14,300 Intel Corp. .................................................... 2,318,387
-------------
5,368,124
-------------
Energy (1.5%)
28,500 Renaissance Energy Ltd. (Canada) ................................ 988,637
-------------
Financial (5.1%)
5,500 American International Group, Inc. ............................. 666,188
18,500 Associates First Capital Corp. ................................. 899,563
32,000 Federal Home Loan Mortgage Corp. ............................... 968,000
28,700 Great Western Financial Corp. .................................. 907,638
-------------
3,441,389
-------------
Household Products (0.9%)
12,400 Tupperware Corp. ............................................... 581,250
-------------
Machinery - Construction &
Materials (2.3%)
2,100 Case Corp. ..................................................... 111,300
35,800 Kennametal, Inc. ............................................... 1,418,575
-------------
1,529,875
-------------
Oil & Gas Products (3.4%)
35,500 Canadian Natural Resources Ltd. ................................ 1,008,875
91,200 Daniel Industries Inc. ......................................... 1,311,000
-------------
2,319,875
-------------
Oil - Foreign (4.5%)
17,500 Amoco Corp. .................................................... 1,522,500
8,000 Chevron Corp. .................................................. 531,000
9,600 Exxon Corp. .................................................... 994,800
-------------
3,048,300
-------------
Real Estate Investment Trust (9.5%)
121,800 CWM Mortgage Holdings, Inc. .................................... 2,649,150
75,000 Kilroy Realty Corp. ............................................ 1,921,875
41,200 Simon Debartolo Group, Inc. .................................... 1,205,100
18,800 Spieker Properties, Inc. ....................................... 658,000
-------------
6,434,125
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW TOTAL RETURN TRUST
PORTFOLIO OF INVESTMENTS January 31, 1997 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Retail - Specialty (4.8%)
60,600 Corporate Express, Inc. * ...................................... $ 2,045,250
48,950 CUC International, Inc. * ...................................... 1,211,513
------------
3,256,763
------------
Telecommunications (1.0%)
12,400 Lucent Technologies, Inc. ...................................... 672,700
------------
Tobacco (3.0%)
16,900 Philip Morris Companies, Inc. .................................. 2,008,988
------------
TOTAL COMMON STOCKS
(Identified Cost $55,229,488) .................................. 66,365,648
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------- ---------------------------------------------------------------- ------------
SHORT-TERM INVESTMENT (0.2%)
<S> <C> <C>
REPURCHASE AGREEMENT
$168 The Bank of New York
5.25% due 02/03/97
(dated 01/31/97; proceeds
$167,959; collateralized by
$169,953 U.S. Treasury Note
5.375% due 11/30/97 valued
at $171,243)(Identified
Cost $167,886) ................................................. $ 167,886
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $55,397,374)(a) . 98.8% 66,533,534
OTHER ASSETS IN EXCESS OF
LIABILITIES ...................... 1.2 779,024
-------- ------------
NET ASSETS........................ 100.0% $67,312,558
======== ============
</TABLE>
- ------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$11,412,207 and the aggregate gross unrealized depreciation is
$276,047, resulting in net unrealized appreciation of $11,136,160.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW TOTAL RETURN TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $55,397,374).............. $66,533,534
Receivable for:
Investments sold .......................... 2,081,705
Shares of beneficial interest sold ....... 574,588
Dividends.................................. 106,007
Deferred organizational expenses ........... 85,847
Prepaid expenses ........................... 66,209
-----------
TOTAL ASSETS.............................. 69,447,890
-----------
LIABILITIES:
Payable for:
Investments purchased...................... 1,951,983
Shares of beneficial interest repurchased 55,575
Plan of distribution fee .................. 43,102
Management fee ............................ 24,147
Investment advisory fee ................... 16,098
Accrued expenses ........................... 44,427
-----------
TOTAL LIABILITIES......................... 2,135,332
-----------
NET ASSETS:
Paid-in-capital ............................ 54,038,375
Net unrealized appreciation ................ 11,136,160
Accumulated undistributed net investment
income..................................... 110,854
Accumulated undistributed net realized
gain....................................... 2,027,169
-----------
NET ASSETS ............................... $67,312,558
===========
NET ASSET VALUE PER SHARE,
4,845,441 shares outstanding (unlimited
shares authorized of $.01 par value) ...... $13.89
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended January 31, 1997 (unaudited)
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INCOME:
Dividends ............................. $ 801,453
Interest............................... 71,342
------------
TOTAL INCOME......................... 872,795
------------
EXPENSES
Plan of distribution fee .............. 231,674
Management fee ........................ 126,212
Investment advisory fee ............... 84,141
Professional fees ..................... 33,026
Registration fees ..................... 24,643
Transfer agent fees and expenses ...... 24,323
Shareholder reports and notices ...... 21,343
Trustees' fees and expenses............ 20,889
Organizational expenses ............... 15,282
Custodian fees......................... 9,181
Other.................................. 2,905
------------
TOTAL EXPENSES ...................... 593,619
------------
NET INVESTMENT INCOME................ 279,176
------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain...................... 2,620,056
Net change in unrealized appreciation 10,338,035
------------
NET GAIN............................. 12,958,091
------------
NET INCREASE .......................... $13,237,267
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW TOTAL RETURN TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JANUARY 31, 1997 JULY 31, 1996
- ------------------------------------------------------ ---------------- --------------
<S> <C> <C>
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................. $ 279,176 $ 592,093
Net realized gain...................................... 2,620,056 4,933,040
Net change in unrealized appreciation ................. 10,338,035 (2,291,729)
---------------- --------------
NET INCREASE......................................... 13,237,267 3,233,404
---------------- --------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ................................. (215,304) (762,557)
Net realized gain...................................... (4,993,068) (1,768,960)
---------------- --------------
TOTAL................................................ (5,208,372) (2,531,517)
---------------- --------------
Net increase from transactions in shares of beneficial
interest.............................................. 10,759,267 11,804,931
---------------- --------------
NET INCREASE......................................... 18,788,162 12,506,818
NET ASSETS:
Beginning of period.................................... 48,524,396 36,017,578
---------------- --------------
END OF PERIOD
(Including undistributed net investment income of
$110,854 and $46,982, respectively).................. $67,312,558 $48,524,396
================ ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW TOTAL RETURN TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1997 (unaudited)
1. Organization and Accounting Policies
TCW/DW Total Return Trust (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a non-diversified, open-end
management investment company. The Fund's investment objective is high total
return from capital growth and income. The Fund seeks to achieve its
objective by investing primarily in equity and equity-related securities
issued by domestic and foreign companies. The Fund was organized as a
Massachusetts business trust on June 29, 1994 and commenced operations on
November 30, 1994.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at
its latest sale price on that exchange prior to the time when assets are
valued; if there were no sales that day, the security is valued at the latest
bid price (in cases where securities are traded on more than one exchange,
the securities are valued on the exchange designated as the primary market
pursuant to procedures adopted by the Trustees); (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation;
(3) when market quotations are not readily available, including circumstances
under which it is determined by TCW Funds Management, Inc. (the "Adviser")
that sale and bid prices are not reflective of a security's market value,
portfolio securities are valued at their fair value as determined in good
faith under procedures established by and under the general supervision of
the Trustees; and (4) short-term debt securities having a maturity date of
more than sixty days at time of purchase are valued on a mark-to-market basis
until sixty days prior to maturity and thereafter at amortized cost based on
their value on the 61st day. Short-term debt securities having a maturity
date of sixty days or less at the time of purchase are valued at amortized
cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined by the identified cost
method. Discounts are accreted over the life of the respective securities.
Dividend income and other distributions are recorded on the ex-dividend date.
Interest income is accrued daily.
<PAGE>
TCW/DW TOTAL RETURN TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1997 (unaudited) continued
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. Dividends
and distributions which exceed net investment income and net realized capital
gains for financial reporting purposes but not for tax purposes are reported
as dividends in excess of net investment income or distributions in excess of
net realized capital gains. To the extent they exceed net investment income
and net realized capital gains for tax purposes, they are reported as
distributions of paid-in-capital.
E. ORGANIZATIONAL EXPENSES -- Dean Witter InterCapital Inc. ("InterCapital"),
an affiliate of Dean Witter Services Company Inc. (the "Manager") paid the
organizational expenses of the Fund in the amount of approximately $127,000
of which approximately $122,200 have been reimbursed. The balance has been
absorbed by InterCapital. Such expenses have been deferred and are being
amortized on the straight-line method over a period not to exceed five years
from the commencement of operations.
2. MANAGEMENT AGREEMENT
Pursuant to a Management Agreement, the Fund pays the Manager a management
fee, accrued daily and payable monthly, by applying the annual rate of 0.45%
to the net assets of the Fund determined as of the close of each business
day.
Under the terms of the Management Agreement, the Manager maintains certain of
the Fund's books and records and furnishes, at its own expense, office space,
facilities, equipment, clerical, bookkeeping and certain legal services and
pays the salaries of all personnel, including officers of the Fund who are
employees of the Manager. The Manager also bears the cost of telephone
services, heat, light, power and other utilities provided to the Fund.
<PAGE>
TCW/DW TOTAL RETURN TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1997 (unaudited) continued
3. INVESTMENT ADVISORY AGREEMENT
Pursuant to an Investment Advisory Agreement with the Adviser, the Fund pays
an advisory fee, accrued daily and payable monthly, by applying the annual
rate of 0.30% to the net assets of the Fund determined as of the close of
each business day.
Under the terms of the Investment Advisory Agreement, the Fund has retained
the Adviser to invest the Fund's assets, including placing orders for the
purchase and sale of portfolio securities. The Adviser obtains and evaluates
such information and advice relating to the economy, securities markets, and
specific securities as it considers necessary or useful to continuously
manage the assets of the Fund in a manner consistent with its investment
objective. In addition, the Adviser pays the salaries of all personnel,
including officers of the Fund, who are employees of the Adviser.
4. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Manager. The Fund has adopted a Plan of
Distribution (the "Plan") pursuant to Rule 12b-1 under the Act pursuant to
which the Fund pays the Distributor compensation, accrued daily and payable
monthly, at an annual rate of 1.0% of the lesser of: (a) the average daily
aggregate gross sales of the Fund's shares since the Fund's inception (not
including reinvestment of dividend or capital gains distributions) less the
average daily aggregate net asset value of the Fund's shares redeemed since
the Fund's inception upon which a contingent deferred sales charge has been
imposed or upon which such charge has been waived; or (b) the Fund's average
daily net assets. Amounts paid under the Plan are paid to the Distributor to
compensate it for the services provided and the expenses borne by it and
others in the distribution of the Fund's shares, including the payment of
commissions for sales of the Fund's shares and incentive compensation to, and
expenses of, account executives of Dean Witter Reynolds Inc. ("DWR"), an
affiliate of the Manager and Distributor, and other employees and selected
broker-dealers who engage in or support distribution of the Fund's shares or
who service shareholder accounts, including overhead and telephone expenses,
printing and distribution of prospectuses and reports used in connection with
the offering of the Fund's shares to other than current shareholders and the
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may be compensated under the Plan for
its opportunity costs in advancing such amounts, which compensation would be
in the form of a carrying charge on any unreimbursed expenses by the
Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred
but not yet recovered may be recovered through future distribution fees from
the Fund and contingent deferred sales charges from the Fund's shareholders.
<PAGE>
TCW/DW TOTAL RETURN TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1997 (unaudited) continued
Although there is no legal obligation for the Fund to pay expenses incurred
in excess of payments made to the Distributor under the Plan and the proceeds
of contingent deferred sales charges paid by investors upon redemption of
shares, if for any reason the Plan is terminated, the Trustees will consider
at that time the manner in which to treat such expenses. The Distributor has
advised the Fund that such excess amounts, including carrying charges,
totaled $2,741,852 at January 31, 1997.
The Distributor has informed the Fund that for the six months ended January
31, 1997, it received approximately $83,000 in contingent deferred sales
charges from certain redemptions of the Fund's shares.
5. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities,
excluding short-term investments, for the six months ended January 31, 1997
aggregated $79,306,168 and $73,031,329, respectively. Included in the
aforementioned are purchases and sales of U.S. Government securities of
$6,920,156 and $12,317,515, respectively.
For the six months ended January 31, 1997, the Fund incurred brokerage
commissions of $33,550 with DWR for portfolio transactions executed on behalf
of the Fund.
Dean Witter Trust Company, an affiliate of the Manager and Distributor, is
the Fund's transfer agent. At January 31, 1997, the Fund had transfer agent
fees and expenses payable of approximately $1,800.
6. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JANUARY 31, 1997 JULY 31, 1996
--------------------------- ----------------------------
(unaudited)
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ --------------
<S> <C> <C> <C> <C>
Sold 1,022,234 $13,785,862 1,659,330 $ 20,294,836
Reinvestment of dividends and distributions ... 349,411 4,558,764 190,676 2,261,482
------------ ------------- ------------ --------------
1,371,645 18,344,626 1,850,006 22,556,318
Repurchased ................................... (568,551) (7,585,359) (872,725) (10,751,387)
------------ ------------- ------------ --------------
Net increase .................................. 803,094 $10,759,267 977,281 $ 11,804,931
============ ============= ============ ==============
</TABLE>
<PAGE>
TCW/DW TOTAL RETURN TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR NOVEMBER 30, 1994*
MONTHS ENDED ENDED THROUGH
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995
- --------------------------------------- ---------------- --------------- ------------------
<S> <C> <C> <C>
(unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ... $12.00 $11.75 $10.00
---------------- --------------- ------------------
Net investment income................... 0.06 0.15 0.21
Net realized and unrealized gain ...... 3.07 0.80 1.68
---------------- --------------- ------------------
Total from investment operations ....... 3.13 0.95 1.89
---------------- --------------- ------------------
Less dividends and distributions from:
Net investment income.................. (0.05) (0.21) (0.14)
Net realized gain...................... (1.19) (0.49) --
---------------- --------------- ------------------
Total dividends and distributions ...... (1.24) (0.70) (0.14)
---------------- --------------- ------------------
Net asset value, end of period.......... $13.89 $12.00 $11.75
================ =============== ==================
TOTAL INVESTMENT RETURN+................ 26.79%(1) 8.23% 19.04%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 2.12%(2) 1.98%(3) 0.94%(2)(3)
Net investment income................... 1.00%(2) 1.30%(3) 3.19%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $67,313 $48,524 $36,018
Portfolio turnover rate................. 132%(1) 261% 91%(1)
Average commission rate paid............ $0.0579 $0.0582 --
</TABLE>
- ------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all of its expenses that were reimbursed or
waived by the Manager and Investment Adviser, the annualized expense
and net investment income ratios would have been 2.21% and 1.07%,
respectively, for the year ended July 31, 1996 and 2.66% and 1.47%,
respectively, for the period ended July 31, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES TCW/DW
John C. Argue
Richard M. DeMartini TOTAL RETURN
Charles A. Fiumefreddo TRUST
John R. Haire
Dr. Manuel H. Johnson
Thomas E. Larkin, Jr.
Michael E. Nugent
John L. Schroeder
Marc I. Stern
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Thomas E. Larkin, Jr.
President
Barry Fink
Vice President, Secretary and
General Counsel
James A. Tilton
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
MANAGER
Dean Witter Services Company Inc.
ADVISER
TCW Funds Management, Inc.
The financial statements included herein have SEMIANNUAL REPORT
been taken from the records of the Fund without JANUARY 31, 1997
examination by the independent accountants and
accordingly they do not express an opinion thereon.
This report is submitted for the general information
of shareholders of the Fund. For more detailed
information about the Fund, its officers and
trustees, fees, expenses and other pertinent
information, please see the prospectus of the Fund.
This report is not authorized for distribution to
prospective investors in the Fund unless preceded
or accompanied by an effective prospectus.
