UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07448
TCW/DW Term Trust 2003
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: March 31, 2004
Date of reporting period: September 30, 2003
Item 1 - Report to Shareholders
TCW/DW TERM TRUST 2003
LETTER TO THE SHAREHOLDERS o SEPTEMBER 30, 2003
DEAR SHAREHOLDER:
For the six months ended September 30, 2003, the net asset value of TCW/DW Term
Trust 2003 decreased from $10.87 to $10.68 per share. Based on this change, and
including reinvestment of dividends totaling $0.18 per share, the Trust's total
return for the period was -0.09 percent. Over the same period, the market price
of the Trust's shares NAV on the New York Stock Exchange (NYSE) decreased from
$10.73 to $10.59. Based on this change and including reinvestment of dividends,
the Trust's total market value return for the period was 0.36 percent.
THE MARKET
The U.S. economy entered the Iraq war in a soft spot and has been slow to
recover. Many factors and policies have been put in place to promote economic
expansion, including a lower dollar, reduced energy costs, lower taxes, higher
stock prices and profits, and increased defense spending. Declines in long-term
interest rates and mortgage rates have also helped, but manufacturing and labor
have languished all year. In June, the Fed implemented a 25-basis-point rate cut
that disappointed investors and fueled a sharp sell-off in the fixed-income
market. The yield on 10-year U.S. Treasuries rose from its multidecade low of
3.11 percent on June 13 to 4.60 percent on September 2, then fell to 3.94
percent on September 30. The Fed is now on hold, citing the fragile recovery,
low inflation and a weak labor market. In its latest directive, the Federal Open
Market Committee confirmed that it is a long way from changing its dovish bias
and raising rates.
Volatility has been high since the end of May, exacerbated by limited supply and
thin dealer positions in many subsectors of the mortgage market. Another drag on
mortgage returns over the past three or four months has been the overhang of
mortgage extension risk. With so many investors concerned about this issue of
mortgage extension, it was not unexpected for mortgages to underperform during
the sell-off, then recoup some of those losses when the market rallied. But with
rates now more than 100 basis points above the lows of mid June, convexity risk
is skewed toward the call side or duration shortening. The duration of the
benchmark Lehman Mortgage Index extended from 0.58 years at the end of May to
3.22 years at the end of August, then drew back to 2.5 years by the end of
September.
Prepayments rose to an all-time high this summer, with 30-year Fannie Maes, for
example, prepaying at an overall rate that exceeded 60 percent of the
conditional prepayment rate (CPR) while several coupons prepaid in excess of 80
percent CPR. But the interest-rate increase since mid June portends a
significant slowdown in prepayments over the next few months. The exact timing
of these decelerations is harder to predict. Analysts have been looking closely
at estimates of mortgage banker capacity, the fullness of pipelines and
processing lags. Most agree that the October report will see sharp declines in
prepayment. These forecasts are supported by declines in refinancing activity
and increases in mortgage rates. From a record high of 9977.80 on May 30 the MBA
Refi Index fell to a 12-month low of 1981.50 on
TCW/DW TERM TRUST 2003
LETTER TO THE SHAREHOLDERS o SEPTEMBER 30, 2003 CONTINUED
August 29. Since then the index has risen somewhat but remains below 3000, a
solid indication of reduced prepayment activity in the coming weeks. Further,
mortgage rates have risen. The FHLMC's 30-year fixed mortgage rate bottomed out
at 5.21 percent in mid June, rose to 6.44 percent in early September, then
declined to just under 6.00 percent by the end of September.
THE PORTFOLIO
As of September 30, 2003, approximately 6 percent of the Trust was invested in
mortgage pass-through securities issued by agencies of the U.S. government or
was in AAA-rated collateralized mortgage obligations (CMOs) with durations,
average lives or expected maturity dates that corresponded closely to the
termination date of the Trust. An additional 1 percent was invested in inverse
floating-rate CMOs issued by U.S. government agencies. Inverse floaters have
coupons that reset by a multiple in a direction opposite to that of a specified
index. Approximately 67 percent was invested in AAA-rated municipal bonds and
short-term investments. The municipal bond holdings play an important role, as
the Trust seeks to achieve its objective of returning the original $10 per share
offering price to shareholders at maturity. The remaining 26 percent of the
Trust was invested in U.S. government obligations. At September 30, 2003, there
was no leverage in the Trust.
The Trust's net asset value and NYSE market value will continue to fluctuate in
response to changes in market conditions and interest rates. We would like to
remind you that the Trustees have approved a procedure whereby the Trust may
attempt, when appropriate, to reduce or eliminate a market value discount from
net asset value by repurchasing shares in the open market or in privately
negotiated transactions at a price not above market value or net asset value,
whichever is lower at the time of purchase. During this period the Trust did not
purchase shares of common stock.
PLAN OF LIQUIDATION
TCW/DW Term Trust 2003 is scheduled to terminate on or about December 31, 2003.
In light of this expected termination, on January 28, 2003, the Board of
Trustees adopted a plan of liquidation, which took effect April 1. Under this
plan, any regular, monthly distributions declared to shareholders after April 1,
2003 (i.e., starting with the distribution declared on April 29, 2003, and paid
on May 23, 2003) and up to the Trust's termination date will be deemed to be
liquidation distributions.
In preparation for termination, the Trust has determined that the last day of
trading of the Trust's shares on the New York Stock Exchange (NYSE symbol: TMT)
will be December 5, 2003, and, after the close of business on that date,
shareholders will no longer be able to sell their shares on the New York Stock
Exchange. All shareholders of record as of December 5, 2003, will receive a
final distribution on December 15, 2003, which will constitute a liquidation
distribution representing all or substantially all of the net assets of the
Trust, with each shareholder receiving a final payment equal to the net asset
value of his or her shares. It is currently anticipated that the Trust will meet
its objective of returning at least $10.00 per share at its termination date of
December 15, 2003.
2
TCW/DW TERM TRUST 2003
LETTER TO THE SHAREHOLDERS o SEPTEMBER 30, 2003 CONTINUED
We appreciate your support of TCW/DW Term Trust 2003 and look forward to
continuing to serve your investment needs and objectives.
Very truly yours,
/s/ Charles A. Fiumefreddo /s/ Mitchell M. Merin
- -------------------------- ---------------------
Charles A. Fiumefreddo Mitchell M. Merin
Chairman of the Board President
3
TCW/DW TERM TRUST 2003
PORTFOLIO OF INVESTMENTS o SEPTEMBER 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ----------- ----------- --------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (25.7%)
$ 10,000 Federal Home Loan Banks ............................................ 6.375% 11/14/03 $10,062,490
138,000 Federal Home Loan Mortgage Corp. ................................... 6.375 11/15/03 138,885,822
34,000 Federal National Mortgage Assoc. ................................... 3.125 11/15/03 34,083,912
30,000 Federal National Mortgage Assoc. ................................... 4.75 11/14/03 30,130,290
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $212,949,668)................................ 213,162,514
-----------
TAX-EXEMPT MUNICIPAL BONDS (9.7%)
EDUCATIONAL FACILITIES REVENUE (2.3%)
11,445 Houston Independent School District, Texas, Refg ................... 0.00 08/15/04 11,340,622
8,100 Spring Independent School District, Texas, Refg Ser 1993 ........... 0.00 02/15/04 8,068,248
-----------
19,408,870
-----------
ELECTRIC REVENUE (2.1%)
17,500 San Antonio, Texas, Electric & Gas Refg Ser A (Ambac) ETM .......... 0.00 02/01/04 17,438,400
-----------
GENERAL OBLIGATION (2.2%)
5,000 Scottsdale, Arizona, Refg (Secondary MBIA) ......................... 0.00 07/01/04 4,959,900
Port of Oakland, California,
3,000 Refg Ser 1993 F (MBIA) .......................................... 0.00 11/01/03 2,997,150
3,500 Refg Ser 1993 F (MBIA) .......................................... 0.00 11/01/04 3,451,805
6,500 New Orleans, Louisiana, Refg (Ambac) ............................... 0.00 09/01/04 6,438,315
-----------
17,847,170
-----------
HOSPITAL REVENUE (1.2%)
10,000 California Statewide Communities Development Authority,
UniHealth Ser A (Ambac) ETM ........................................ 0.00 10/01/04 9,885,700
-----------
OTHER REVENUE (0.7%)
5,460 Rosemont, Illinois, Tax Increment Ser C-3 (FGIC) ................... 0.00 12/01/03 5,450,390
-----------
Water & Sewer Revenue (1.2%)
10,000 Houston Texas, Water & Sewer Jr Lien Ser C (Ambac) ................. 0.00 12/01/03 9,982,400
-----------
TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $78,014,583)......................................... 80,012,930
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (7.0%)
U.S. GOVERNMENT AGENCIES (6.0%)
1,905 Federal Home Loan Mortgage Corp. 1409 S (PAC) ...................... 22.855(+) 11/15/07 2,417,871
16,447 Federal Home Loan Mortgage Corp. 1465 G (PAC) ...................... 7.00 12/15/07 16,917,875
1,787 Federal Home Loan Mortgage Corp. 1563 SA ........................... 14.152(+) 08/15/08 1,812,158
21,943 Federal Home Loan Mortgage Corp. 1602 PW (PAC) ..................... 6.50 12/15/21 22,291,188
See Notes to Financial Statements
4
TCW/DW TERM TRUST 2003
PORTFOLIO OF INVESTMENTS o SEPTEMBER 30, 2003 (UNAUDITED) CONTINUED
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------- ----------- ---------------
$ 578 Federal National Mortgage Assoc. 1993-101 SA (TAC) ............. 9.227(+)% 06/25/08 $ 578,587
551 Federal National Mortgage Assoc. 1993-101 SB (TAC) ............. 24.42(+) 06/25/08 555,405
312 Federal National Mortgage Assoc. 1993-173 S .................... 16.50(+) 09/25/08 313,786
2,521 Federal National Mortgage Assoc. 1993-72 S ..................... 8.75(+) 05/25/08 2,627,816
1,775 Federal National Mortgage Assoc. 1993-196 SA ................... 18.379(+) 10/25/08 2,006,474
------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $47,280,723)......................................... 49,521,160
------------
PRIVATE ISSUES (1.0%)
1,893 Prudential Home Mortgage Securities 1993-35 A12 ................ 6.75 09/25/08 1,889,575
1,019 Prudential Home Mortgage Securities 1993-23 A12 (PAC) .......... 6.50 07/25/08 1,019,647
5,426 Prudential Home Mortgage Securities 1993-60 A3 (PAC) ........... 6.75 12/25/23 5,420,116
------------
TOTAL PRIVATE ISSUES (COST $7,384,131).................................................... 8,329,338
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $54,664,854).............................. 57,850,498
------------
U.S. Government Agency Mortgage Pass-Through Securities (0.8%)
1,689 Federal Home Loan Mortgage Corp. PC Gold ....................... 6.00 06/01/08 1,764,406
1,567 Federal National Mortgage Assoc. (ARM) ......................... 4.69 08/01/30 1,611,770
1,208 Federal National Mortgage Assoc. (ARM) ......................... 4.788 07/01/30 1,246,658
399 Federal National Mortgage Assoc. (ARM) ......................... 4.894 07/01/30 408,729
238 Federal National Mortgage Assoc. ............................... 5.346 07/01/30 239,225
488 Federal National Mortgage Assoc. ............................... 5.50 02/01/09 508,891
419 Federal National Mortgage Assoc. ............................... 7.00 08/01/08 446,009
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE PASS-THROUGH SECURITIES (Cost $5,960,694)........... 6,225,688
------------
SHORT-TERM INVESTMENTS (56.3%)
U.S. GOVERNMENT AGENCIES (A) (38.8%)
60,000 Federal Home Loan Banks ........................................ 1.07 12/17/03 59,860,900
12,000 Federal Home Loan Banks ........................................ 1.08 12/15/03 11,972,640
14,000 Federal Home Loan Mortgage Corp. ............................... 0.97 12/04/03 13,975,481
10,500 Federal National Mortgage Assoc. ............................... 0.96 12/12/03 10,479,560
40,000 Federal National Mortgage Assoc. ............................... 1.04 12/17/03 39,909,866
50,000 Federal National Mortgage Assoc. ............................... 1.06 12/17/03 49,885,167
2,000 Federal National Mortgage Assoc. ............................... 1.065 12/16/03 1,995,444
9,000 Federal National Mortgage Assoc. ............................... 1.07 12/09/03 8,981,275
21,000 Federal National Mortgage Assoc. ............................... 1.20 12/19/03 20,944,000
40,000 Federal National Mortgage Assoc. ............................... 1.29 11/14/03 39,936,933
38,000 Freddie Mac .................................................... 1.03 10/16/03 37,983,692
See Notes to Financial Statements
5
TCW/DW TERM TRUST 2003
PORTFOLIO OF INVESTMENTS o SEPTEMBER 30, 2003 (UNAUDITED) CONTINUED
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ------------- --------------
$ 24,000 Freddie Mac ................................................. 1.07 % 12/19/03 $ 23,942,933
2,000 Freddie Mac ................................................. 1.08 12/15/03 1,995,440
------------
U.S. GOVERNMENT AGENCIES (Cost $321,870,562)............................................. 321,863,331
------------
COMMERCIAL PAPER (a) (16.9%)
Finance/Rental Leasing (3.0%)
18,000 International Lease Finance Corp. ........................... 1.01 12/17/03 17,960,610
6,600 Paccar Financial Corp. ...................................... 1.00 10/20/03 6,596,517
------------
24,557,127
------------
FINANCIAL CONGLOMERATES (4.2%)
5,000 General Electric Capital Corp. .............................. 1.06 12/17/03 4,988,517
3,000 General Electric Capital Corp. .............................. 1.07 12/17/03 2,993,045
8,000 General Electric Co. ........................................ 1.06 12/16/03 7,981,862
19,500 General Electric Co. ........................................ 1.06 12/17/03 19,455,214
------------
35,418,638
------------
FOODS & BEVERAGES (1.4%)
12,000 Nestle Capital Corp. ........................................ 0.97 12/17/03 11,974,780
------------
INSURANCE (6.1%)
13,000 AIG Funding, Inc. ........................................... 1.04 12/17/03 12,970,707
18,500 MetLife Funding, Inc. ....................................... 1.00 10/01/03 18,500,000
18,000 MetLife Funding, Inc. ....................................... 1.01 10/30/03 17,985,355
1,000 MetLife Funding, Inc. ....................................... 1.03 10/30/03 999,170
------------
50,455,232
------------
INTERNATIONAL BANKS (2.2%)
18,000 Barclays U.S. Funding Inc. .................................. 0.99 10/07/03 17,997,030
------------
TOTAL COMMERCIAL PAPER (Cost $140,405,055)............................................... 140,402,807
------------
REPURCHASE AGREEMENT (0.6%)
4,833 The Bank of New York (dated 09/30/03; proceeds $4,833,588) (b)
(Cost $4,833,445)............................................ 1.063 04/01/03 4,833,445
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $467,109,062)......................................... 467,099,583
------------
TOTAL INVESTMENTS (Cost $818,698,861) (c).................................. 99.5% 824,351,213
OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 0.5 4,327,478
----- ------------
NET ASSETS ................................................................ 100.0% $828,678,691
===== ============
See Notes to Financial Statements
6
TCW/DW TERM TRUST 2003
PORTFOLIO OF INVESTMENTS o SEPTEMBER 30, 2003 (UNAUDITED) CONTINUED
- ------------
ARM Adjustable Rate Mortgage.
ETM Escrowed to maturity.
PC Participation Certificate.
PAC Planned Amortization Class.
TAC Targeted Amortization Class.
(+) Inverse floater: interest rate moves inversely to a designated index,
such as LIBOR (London Inter-Bank Offered Rate) or COFI (Cost of Funds
Index), typically at a multiple of the changes of the relevant index
rate. Rate shown is the rate in effect at September 30, 2003.
(a) Purchased on a discount basis. The interest rate shown has been adjusted
to reflect a money market equivalent yield.
(b) Collateralized by FNMA ARM 4.101% due 09/01/33 valued at $4,930,114.
(c) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes. The aggregate gross unrealized
appreciation is $6,631,678 and the aggregate gross unrealized
depreciation is $979,326, resulting in net unrealized appreciation
of $5,652,352.
Bond Insurance:
- ---------------
Ambac Ambac Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
See Notes to Financial Statements
7
TCW/DW TERM TRUST 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003 (unaudited)
ASSETS:
Investments in securities, at value
(cost $818,698,861) ......................................................... $ 824,351,213
Interest receivable .......................................................... 4,911,180
Prepaid expenses ............................................................. 22,042
-------------
TOTAL ASSETS ............................................................... 829,284,435
-------------
LIABILITIES:
Payable for:
Management fee ............................................................. 284,239
Investment advisory fee .................................................... 189,492
Accrued expenses ............................................................. 132,013
-------------
TOTAL LIABILITIES .......................................................... 605,744
-------------
NET ASSETS ................................................................. $ 828,678,691
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital .............................................................. $ 749,048,490
Net unrealized appreciation .................................................. 5,652,352
Accumulated undistributed net investment income .............................. 69,246,814
Accumulated undistributed net realized gain .................................. 4,731,035
-------------
Net Assets ................................................................. $ 828,678,691
=============
NET ASSET VALUE PER SHARE,
77,563,380 shares outstanding (unlimited shares authorized of $.01 par value) $ 10.68
=============
See Notes to Financial Statements
8
TCW/DW TERM TRUST 2003
FINANCIAL STATEMENTS CONTINUED
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME ............................... $ 14,508,536
-------------
EXPENSES
Management fee ................................ 1,638,147
Investment advisory fee ....................... 1,092,098
Transfer agent fees and expenses .............. 154,208
Professional fees ............................. 39,488
Registration fees ............................. 24,375
Custodian fees ................................ 22,717
Trustees' fees and expenses ................... 6,152
Other ......................................... 29,256
-------------
TOTAL EXPENSES .............................. 3,006,441
-------------
NET INVESTMENT INCOME ....................... 11,502,095
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain ............................. 5,375,713
Net change in unrealized appreciation ......... (17,584,030)
-------------
NET LOSS .................................... (12,208,317)
-------------
NET DECREASE .................................. $ (706,222)
=============
See Notes to Financial Statements
9
TCW/DW TERM TRUST 2003
FINANCIAL STATEMENTS CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
-------------------- ---------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ....................................................... $ 11,502,095 $ 41,061,527
Net realized gain (loss) .................................................... 5,375,713 (64,694)
Net change in unrealized appreciation ....................................... (17,584,030) (7,768,596)
------------- -------------
NET INCREASE (DECREASE) ................................................... (706,222) 33,228,237
Dividends to shareholders from net investment income ........................ (13,961,171) (43,745,150)
------------- -------------
NET DECREASE .............................................................. (14,667,393) (10,516,913)
NET ASSETS:
Beginning of period ......................................................... 843,346,084 853,862,997
------------- -------------
END OF PERIOD
(Including accumulated undistributed net investment income of $69,246,814 and
$71,705,890, respectively) ................................................. $ 828,678,691 $ 843,346,084
============= =============
See Notes to Financial Statements
10
TCW/DW TERM TRUST 2003
NOTES TO FINANCIAL STATEMENTS o SEPTEMBER 30, 2003 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
TCW/DW Term Trust 2003 (the "Trust") is registered under the Investment Company
Act of 1940, as amended, as a diversified, closed-end management investment
company. The Trust's investment objective is to provide a high level of current
income and return $10 per share to shareholders on the termination date. The
Trust seeks to achieve its objective by investing in high quality fixed-income
securities. The Trust was organized as a Massachusetts business trust on January
20, 1993 and commenced operations on April 29, 1993. The Trust will distribute
substantially all of its net assets on or about December 31, 2003 and will then
terminate.
The last day of trading of the Trust's shares on New York Stock Exchange will be
December 5, 2003. All shareholders of record as of December 5, 2003 will receive
a final distribution on December 15, 2003, which will constitute a liquidation
distribution representing all or substantially all of the assets of the Trust
with each shareholder receiving a final payment equal to the net asset value of
his or her shares.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest bid price prior to the time of valuation; (2) when market quotations are
not readily available, including circumstances under which it is determined by
TCW Investment Management Company (the "Adviser") the sale price or bid price
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; (3) certain portfolio
securities are valued by an outside independent pricing service approved by the
Trustees. The pricing service uses both a computerized grid matrix of tax-exempt
securities and evaluations by its staff, in each case based on information
concerning market transactions and quotations from dealers which reflect the bid
side of the market each day. The portfolio securities are thus valued by
reference to a combination of transactions and quotations for the same or other
securities believed to be comparable in quality, coupon, maturity, type of
issue, call provisions, trading characteristics and other features deemed to be
relevant; 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 and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
C. REPURCHASE AGREEMENTS -- The Fund may invest directly with institutions in
repurchase agreements. The Fund's custodian receives the collateral, which is
marked-to-market daily to determine that the value of the collateral does not
decrease below the repurchase price plus accrued interest.
11
TCW/DW TERM TRUST 2003
NOTES TO FINANCIAL STATEMENTS o SEPTEMBER 30, 2003 (UNAUDITED) CONTINUED
D. FEDERAL INCOME TAX POLICY -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded on the ex-dividend date.
F. USE OF ESTIMATES -- 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.
2. MANAGEMENT/INVESTMENT ADVISORY AGREEMENTS
Pursuant to a Management Agreement, the Trust pays Morgan Stanley Services
Company Inc. (the "Manager") a management fee, accrued weekly and payable
monthly, by applying the annual rate of 0.39% to the Trust's weekly net assets.
Pursuant to an Investment Advisory Agreement the Trust pays the Adviser an
advisory fee, accrued weekly and payable monthly, by applying the annual rate of
0.26% to the Trust's weekly net assets.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The proceeds from sales/prepayments of portfolio securities, excluding
short-term investments, for the six months ended September 30, 2003 were as
follows:
SALES/PREPAYMENTS
------------------
U.S. Government Agencies ................................... $85,732,630
Private Issue Collateralized Mortgage Obligations .......... 38,336,595
Morgan Stanley Trust, an affiliate of the Manager, is the Trust's transfer
agent. At September 30, 2003, the Trust had transfer agent fees and expenses
payable of approximately $48,500.
4. SHARES OF BENEFICIAL INTEREST
There were no transactions in shares of beneficial interest.
CAPITAL PAID
PAR VALUE IN EXCESS OF
SHARES OF SHARES PAR VALUE
------------ ----------- ---------------
Balance, March 31, 2002, March 31, 2003 and September 30, 2003 ......... 77,563,380 $775,634 $748,272,856
========== ======== ============
5. FEDERAL INCOME TAX STATUS
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
12
TCW/DW TERM TRUST 2003
NOTES TO FINANCIAL STATEMENTS o SEPTEMBER 30, 2003 (UNAUDITED) CONTINUED
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 tax purposes are reported as distributions of paid-in-capital.
As of March 31, 2003, the Fund had a net capital loss carryforward of $580,380
to offset future capital gains to the extent provided by regulations.
As of March 31, 2003, the Fund had temporary book/tax differences attributable
to post-October losses (capital losses incurred after October 31 within the
taxable year which are deemed to arise on the first business day of the Fund's
next taxable year).
6. REVERSE REPURCHASE AND DOLLAR ROLL AGREEMENTS
Reverse repurchase and dollar roll agreements involve the risk that the market
value of the securities the Trust is obligated to repurchase under the agreement
may decline below the repurchase price. In the event the buyer of securities
under a reverse repurchase or dollar roll agreement files for bankruptcy or
becomes insolvent, the Trust's use of proceeds may be restricted pending a
determination by the other party, or its trustee or receiver, whether to enforce
the Trust's obligation to repurchase the securities.
Reverse repurchase agreements are collateralized by Trust securities with a
market value in excess of the Trust's obligation under the contract. At
September 30, 2003, there were no reverse repurchase agreements or dollar rolls
outstanding.
7. DIVIDENDS
The Trust declared the following dividends from net investment income:
DECLARATION AMOUNT RECORD PAYABLE
DATE PER SHARE DATE DATE
- ------------------------ ----------- ----------------- ------------------
September 23, 2003 $ 0.03 October 3, 2003 October 17, 2003
On January 28, 2003, the Trust's Board of Trustees adopted a plan of liquidation
to take effect on April 1, 2003 whereby any dividend distributions declared to
shareholders after that date and up to the Trust's termination date will be
deemed liquidating distributions.
8. LITIGATION
There is one litigation matter pending, a purported class action filed on behalf
of the residents of Florida, against some of the Trust's Trustees and officers,
one of its underwriters, the lead representative of its underwriters, the
Adviser, the Manager and other defendants - but not against the Trust. This
matter, currently pending in the Florida State Court, generally alleges
violations of the state statutory and common law in connection with the
marketing of the Trust to customers of one of the underwriters. The action has
been settled subject to Court approval.
13
TCW/DW TERM TRUST 2003
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
FOR THE SIX FOR THE YEAR ENDED MARCH 31,
MONTHS ENDED ---------------------------------------------------------------
SEPTEMBER 30, 2003 2003 2002 2001 2000 1999
------------------- ----------- ----------- ----------- ------------- -------------
(unaudited)
SELECTED PER SHARE DATA:
Net asset value, beginning of
period ............................. $ 10.87 $ 11.01 $ 10.75 $ 9.91 $ 10.36 $ 10.11
-------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income .............. 0.15* 0.53* 0.78* 0.63* 0.73* 0.74
Net realized and unrealized gain
(loss) ............................ (0.16) (0.11) 0.03 0.76 (0.57) 0.09
-------- -------- -------- -------- ------- -------
Total (loss) income from
investment operations .............. (0.01) 0.42 0.81 1.39 0.16 0.83
-------- -------- -------- -------- ------- -------
Less dividends from net
investment income .................. (0.18) (0.56) (0.56) (0.59) (0.64) (0.63)
-------- -------- -------- -------- ------- -------
Anti-dilutive effect of acquiring
treasury shares* ................... -- -- 0.01 0.04 0.03 0.05
-------- -------- -------- -------- ------- -------
Net asset value, end of period ...... $ 10.68 $ 10.87 $ 11.01 $ 10.75 $ 9.91 $ 10.36
======== ======= ======= ======= ======= =======
Market value, end of period ......... $ 10.59 $ 10.73 $ 10.65 $ 10.13 $ 8.875 $ 9.375
======== ======= ======= ======= ======= =======
TOTAL RETURN(+)...................... 0.36%(1) 6.13% 10.91% 21.43% 1.46% 10.56%
RATIOS TO AVERAGE NET ASSETS:
Operating expenses .................. 0.72%(2) 0.72% 0.74% 0.73% 0.73% 0.74%
Interest expense .................... - -- 0.69% 2.62% 2.38% 2.40%
Total expenses ...................... 0.72%(2) 0.72% 1.43% 3.35% 3.11% 3.14%
Net investment income ............... 2.74%(2) 4.79% 7.09% 6.21% 7.31% 6.93%
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands .......................... $828,679 $843,346 $853,863 $855,638 $831,317 $905,779
Portfolio turnover rate ............. -- (+/+) 33% 1% 5% 6% --
- -----------
* The per share amounts were computed using an average number of shares
outstanding during the period.
(+) Total return is based upon the current market value on the last day of
each period reported. Dividends and distributions are assumed to be
reinvested at the prices obtained under the Trust's dividend reinvestment
plan. Total return does not reflect brokerage commissions.
(1) Not annualized.
(2) Annualized.
(+/+) Less than 0.5%
See Notes to Financial Statements
14
(This page has been left blank intentionally.)
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael E. Nugent
Philip J. Purcell
Fergus Reid
OFFICERS
Charles A. Fiumefreddo
Chairman of the Board
Mitchell M. Merin
President
Ronald E. Robison
Executive Vice President and Principal Executive Officer
Barry Fink
Vice President and General Counsel
Joseph J. McAlinden
Vice President
Stefanie V. Chang
Vice President
Francis J. Smith
Treasurer and Chief Financial Officer
Thomas F. Caloia
Vice President
Mary E. Mullin
Secretary
TRANSFER AGENT
Morgan Stanley Trust
Harborside Financial Center, Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
MANAGER
Morgan Stanley Services Company Inc.
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
ADVISER
TCW Investment Management Company
865 South Figueroa Street, Suite 1800
Los Angeles, CA 90017
The financial statements included herein have been taken from the records
of the Fund without examination by the independent auditors and accordingly
they do not express an opinion thereon.
37932RPT-00-12646J03-0P-10/03
[TCW/DW LOGO]
TERM TRUST 2003
[GRAPHIC OMITTED]
Semiannual Report
September 30, 2003
Item 2. Code of Ethics
(a) The Trust has adopted a code of ethics (the "Code of Ethics") that applies
to its principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the Trust or a
third party.
(b) No information need be disclosed pursuant to this paragraph.
(c) The Trust has amended its Code of Ethics during the period covered by the
shareholder report presented in Item 1 hereto
(d) The Trust has granted a waiver or an implicit waiver from a provision of
its Code of Ethics.
(e) Not applicable.
(f)
(1) The Trust's Code of Ethics is attached hereto as Exhibit A.
(2) Not applicable.
(3) Not applicable.
Item 3. Audit Committee Financial Expert.
The Trust's Board of Trustees has determined that it has two "audit committee
financial experts" serving on its audit committee, each of whom are
"independent" Trustees: Dr. Manuel H. Johnson and Joseph J. Kearns. Under
applicable securities laws, a person who is determined to be an audit committee
financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933,
as a result of being designated or identified as an audit committee financial
expert. The designation or identification of a person as an audit committee
financial expert does not impose on such person any duties, obligations, or
liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees
in the absence of such designation or identification.
Item 9 - Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
2
Item 10 Exhibits
(a) The Code of Ethics for Principal Executive and Senior Financial Officers is
attached hereto.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.
Items 4 - 8 are not applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TCW/DW Term Trust 2003
Ronald E. Robison
Principal Executive Officer
November 19, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
Ronald E. Robison
Principal Executive Officer
November 19, 2003
Francis Smith
Principal Financial Officer
November 19, 2003
3
EXHIBIT 10 A
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL
OFFICERS
ADOPTED JULY 31, 2003
I. This Code of Ethics (the "Code") for the investment companies within the
Morgan Stanley complex identified in Exhibit A (collectively, "Funds" and
each, a "Fund") applies to each Fund's Principal Executive Officer,
President, Principal Financial Officer and Treasurer (or persons performing
similar functions) ("Covered Officers" each of whom are set forth in
Exhibit B) for the purpose of promoting:
o honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships.
o full, fair, accurate, timely and understandable disclosure in reports
and documents that a company files with, or submits to, the Securities
and Exchange Commission ("SEC") and in other public communications
made by the Fund;
o compliance with applicable laws and governmental rules and
regulations;
o prompt internal reporting of violations of the Code to an appropriate
person or persons identified in the Code; and
o accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business
ethics and should be sensitive to situations that may give rise to actual as
well as apparent conflicts of interest. Any question about the application of
the Code should be referred to the General Counsel or his/her designee (who is
set forth in Exhibit C).
II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF
INTEREST
OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private
interest interferes, or appears to interfere, with the interests of, or his
service to, the Fund. For example, a conflict of interest would arise if a
Covered Officer, or a member of his family, receives improper personal benefits
as a result of his position with the Fund.
Certain conflicts of interest arise out of the relationships between
Covered Officers and the Fund and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 ("Investment Company Act") and
the Investment
4
Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers
may not individually engage in certain transactions (such as the purchase or
sale of securities or other property) with the Fund because of their status as
"affiliated persons" (as defined in the Investment Company Act) of the Fund. The
Fund's and its investment adviser's compliance programs and procedures are
designed to prevent, or identify and correct, violations of these provisions.
This Code does not, and is not intended to, repeat or replace these programs and
procedures, and such conflicts fall outside the parameters of this Code, unless
or until the General Counsel determines that any violation of such programs and
procedures is also a violation of this Code.
Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between the Fund and its investment adviser of which the Covered
Officers are also officers or employees. As a result, this Code recognizes that
the Covered Officers will, in the normal course of their duties (whether
formally for the Fund or for the investment adviser, or for both), be involved
in establishing policies and implementing decisions that will have different
effects on the Fund and its investment adviser. The participation of the Covered
Officers in such activities is inherent in the contractual relationship between
the Fund and the investment adviser and is consistent with the performance by
the Covered Officers of their duties as officers of the Fund. Thus, if performed
in conformity with the provisions of the Investment Company Act and the
Investment Advisers Act, such activities will be deemed to have been handled
ethically. In addition, it is recognized by the Funds' Boards of
Directors/Trustees ("Boards") that the Covered Officers may also be officers or
employees of one or more other investment companies covered by this or other
codes.
Other conflicts of interest are covered by the Code, even if such conflicts
of interest are not subject to provisions in the Investment Company Act and the
Investment Advisers Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the Fund.
Each Covered Officer must not:
o use his personal influence or personal relationships improperly to
influence investment decisions or financial reporting by the Fund
whereby the Covered Officer would benefit personally (directly or
indirectly) to the detriment of the Fund;
o cause the Fund to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the
benefit of the Fund; or
o use material non-public knowledge of portfolio transactions made or
contemplated for, or actions proposed to be taken by, the Fund to
trade personally or cause others to trade personally in contemplation
of the market effect of such transactions.
5
Each Covered Officer must, at the time of signing this Code, report to the
General Counsel all affiliations or significant business relationships outside
the Morgan Stanley complex and must update the report annually.
Conflict of interest situations should always be approved by the General
Counsel and communicated to the relevant Fund or Fund's Board. Any activity or
relationship that would present such a conflict for a Covered Officer would
likely also present a conflict for the Covered Officer if an immediate member of
the Covered Officer's family living in the same household engages in such an
activity or has such a relationship. Examples of these include:
o service or significant business relationships as a director on the
board of any public or private company;
o accepting directly or indirectly, anything of value, including gifts
and gratuities in excess of $100 per year from any person or entity
with which the Fund has current or prospective business dealings, not
including occasional meals or tickets for theatre or sporting events
or other similar entertainment; provided it is business-related,
reasonable in cost, appropriate as to time and place, and not so
frequent as to raise any question of impropriety;
o any ownership interest in, or any consulting or employment
relationship with, any of the Fund's service providers, other than its
investment adviser, principal underwriter, or any affiliated person
thereof; and
o a direct or indirect financial interest in commissions, transaction
charges or spreads paid by the Fund for effecting portfolio
transactions or for selling or redeeming shares other than an interest
arising from the Covered Officer's employment, such as compensation or
equity ownership.
III. DISCLOSURE AND COMPLIANCE
o Each Covered Officer should familiarize himself/herself with the
disclosure and compliance requirements generally applicable to the
Funds;
o each Covered Officer must not knowingly misrepresent, or cause others
to misrepresent, facts about the Fund to others, whether within or
outside the Fund, including to the Fund's Directors/Trustees and
auditors, or to governmental regulators and self-regulatory
organizations;
o each Covered Officer should, to the extent appropriate within his area
of responsibility, consult with other officers and employees of the
Funds and their investment advisers with the goal of promoting full,
fair, accurate, timely and understandable disclosure in the reports
and documents the Funds file with, or submit to, the SEC and in other
public communications made by the Funds; and
6
o it is the responsibility of each Covered Officer to promote compliance
with the standards and restrictions imposed by applicable laws, rules
and regulations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
o upon adoption of the Code (thereafter as applicable, upon becoming a
Covered Officer), affirm in writing to the Boards that he has
received, read and understands the Code;
o annually thereafter affirm to the Boards that he has complied with the
requirements of the Code;
o not retaliate against any other Covered Officer, other officer or any
employee of the Funds or their affiliated persons for reports of
potential violations that are made in good faith; and
o notify the General Counsel promptly if he/she knows or suspects of any
violation of this Code. Failure to do so is itself a violation of this
Code.
The General Counsel is responsible for applying this Code to specific
situations in which questions are presented under it and has the authority to
interpret this Code in any particular situation. However, any waivers(1) sought
by a Covered Officer must be considered by the Board of the relevant Fund or
Funds.
The Funds will follow these procedures in investigating and enforcing this
Code:
o the General Counsel will take all appropriate action to investigate
any potential violations reported to him;
o if, after such investigation, the General Counsel believes that no
violation has occurred, the General Counsel is not required to take
any further action;
o any matter that the General Counsel believes is a violation will be
reported to the relevant Fund's Audit Committee;
o if the directors/trustees/managing general partners who are not
"interested persons" as defined by the Investment Company Act (the
"Independent Directors/Trustees/Managing General Partners") of the
relevant Fund concur that a violation has occurred, they will consider
appropriate action, which may include review of, and appropriate
modifications to, applicable
- --------------------
(1) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of
a material departure from a provision of the code of ethics."
7
policies and procedures; notification to appropriate personnel of the
investment adviser or its board; or a recommendation to dismiss the
Covered Officer or other appropriate disciplinary actions;
o the Independent Directors/Trustees/Managing General Partners of the
relevant Fund will be responsible for granting waivers of this Code,
as appropriate; and
o any changes to or waivers of this Code will, to the extent required,
be disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Funds for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Funds, the Funds' investment advisers, principal
underwriters, or other service providers govern or purport to govern the
behavior or activities of the Covered Officers who are subject to this Code,
they are superseded by this Code to the extent that they overlap or conflict
with the provisions of this Code unless any provision of this Code conflicts
with any applicable federal or state law, in which case the requirements of such
law will govern. The Funds' and their investment advisers' and principal
underwriters' codes of ethics under Rule 17j-1 under the Investment Company Act
and Morgan Stanley's Code of Ethics are separate requirements applying to the
Covered Officers and others, and are not part of this Code.
VI. AMENDMENTS
Any amendments to this Code, other than amendments to Exhibits A, B
or C, must be approved or ratified by a majority vote of the Board of each
Fund, including a majority of Independent Directors/Trustees/Managing General
Partners.
VII. CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code will
be considered confidential and shall be maintained and protected accordingly.
Except as otherwise required by law or this Code, such matters shall not be
disclosed to anyone other than the Independent Directors/Trustees/Managing
General Partners of the relevant Fund or Funds and their counsel, the relevant
Fund or Funds and their counsel and the relevant investment adviser and its
counsel.
8
VIII. INTERNAL USE
The Code is intended solely for the internal use by the Funds and does not
constitute an admission, by or on behalf of any Fund, as to any fact,
circumstance, or legal conclusion
I have read and understand the terms of the above Code. I recognize the
responsibilities and obligations incurred by me as a result of my being subject
to the Code. I hereby agree to abide by the above Code.
_____________________________
Date:________________________
9
EXHIBIT B
INSTITUTIONAL FUNDS
COVERED OFFICERS
Mitchell M. Merin - President
Ronald E. Robison - Executive Vice President and Principal Executive Officer
James W. Garrett - Chief Financial Officer and Treasurer
RETAIL FUNDS
COVERED OFFICERS
Mitchell M. Merin - President
Ronald E. Robison - Executive Vice President and Principal Executive Officer
Frank Smith - Chief Financial Officer and Treasurer
10
EXHIBIT C
GENERAL COUNSEL
Barry Fink
11
EXHIBIT 10 B1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
CERTIFICATIONS
I, Ronald E. Robison, certify that:
1. I have reviewed this report on Form N-CSR of TCW/DW Term Trust
2003;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in
all material respects the financial condition, results of
operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in
this report;
4. The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment
Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this report (the "Evaluation Date"); and
c) presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
12
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated
in this report whether or not there were significant changes in
internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Date: November 19, 2003
Ronald E. Robison
Principal Executive Officer
13
EXHIBIT 10 B2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
CERTIFICATIONS
I, Francis Smith, certify that:
1. I have reviewed this report on Form N-CSR of TCW/DW Term Trust
2003;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in
all material respects the financial condition, results of
operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in
this report;
4. The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment
Company Act of 1940) for the registrant and have:
(i) designed such disclosure controls and procedures to ensure
that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the
period in which this report is being prepared;
(ii) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this report (the "Evaluation Date"); and
(iii) presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
14
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated
in this report whether or not there were significant changes in
internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Date: November 19, 2003
Francis Smith
Principal Financial Officer
15
SECTION 906 CERTIFICATION
Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
TCW/DW Term Trust 2003
In connection with the Report on Form N-CSR (the "Report") of the
above-named issuer for the period ended September 30, 2003 that is accompanied
by this certification, the undersigned hereby certifies that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Issuer.
Date: November 19, 2003 Ronald E. Robison
Principal Executive Officer
A signed original of this written statement required by Section 906 has been
provided to TCW/DW Term Trust 2003 and will be retained by TCW/DW Term Trust
2003 and furnished to the Securities and Exchange Commission or its staff upon
request.
16
SECTION 906 CERTIFICATION
Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
TCW/DW Term Trust 2003
In connection with the Report on Form N-CSR (the "Report") of the
above-named issuer for the period ended September 30, 2003 that is accompanied
by this certification, the undersigned hereby certifies that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Issuer.
Date: November 19, 2003 Francis Smith
Principal Financial Officer
A signed original of this written statement required by Section 906 has been
provided to TCW/DW Term Trust 2003 and will be retained by TCW/DW Term Trust
2003 and furnished to the Securities and Exchange Commission or its staff upon
request.
17