<PAGE> PAGE 1
000 B000000 09/30/1999
000 C000000 0001011196
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 MSDW INCOME BUILDER FUND
001 B000000 811-7575
001 C000000 2123922550
002 A000000 TWO WORLD TRADE CENTER
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10048
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004 000000 N
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008 B000001 A
008 C000001 801-42061
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10048
011 A000001 MORGAN STANLEY DEAN WITTER DISTRIBUTORS INC.
011 B000001 8-45262
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10048
012 A000001 MORGAN STANLEY DEAN WITTER TRUST FSB
012 B000001 84-1785
012 C010001 JERSEY CITY
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013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
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<PAGE> PAGE 2
013 B030001 10036
014 A000001 DEAN WITTER REYNOLDS INC.
014 B000001 8-14172
014 A000002 MORGAN STANLEY & CO., INCORPORATED
014 B000002 8-15869
015 A000001 THE BANK OF NEW YORK
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020 B000002 13-5659485
020 C000002 32
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020 C000003 18
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020 C000005 11
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020 B000006 56-0276690
020 C000006 9
020 A000007 MACDONALD CORP.
020 B000007 N/A
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022 C000001 888414
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<PAGE> PAGE 3
022 B000002 13-5674085
022 C000002 236548
022 D000002 1512
022 A000003 BANC OF AMERICA SECURITIES LLC.
022 B000003 56-2058405
022 C000003 160460
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022 B000004 13-5108880
022 C000004 43179
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022 A000007 FIRST UNION CAPITAL MARKETS
022 B000007 56-1529080
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022 D000007 6886
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022 B000008 36-3595942
022 C000008 21898
022 D000008 0
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022 B000009 13-2730828
022 C000009 19157
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022 B000010 13-3112953
022 C000010 12987
022 D000010 5998
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025 A000001 MERRILL LYNCH & CO. INC. 2.39%
025 B000001 13-5674085
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025 B000002 13-5674085
025 C000002 E
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025 D000004 0
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<PAGE> PAGE 4
025 D000008 0
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 10
086 F010000 0
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SIGNATURE BARRY FINK
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
MSDW INCOME BUILDER FUND
CLASS A
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 414,203,281
<INVESTMENTS-AT-VALUE> 394,149,443
<RECEIVABLES> 11,615,965
<ASSETS-OTHER> 115,387
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 405,880,795
<PAYABLE-FOR-SECURITIES> (903,933)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2,766,581)
<TOTAL-LIABILITIES> (3,670,514)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 408,550,366
<SHARES-COMMON-STOCK> 1,142,532
<SHARES-COMMON-PRIOR> 900,992
<ACCUMULATED-NII-CURRENT> 2,449,140
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,264,613
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (20,053,838)
<NET-ASSETS> 12,541,482
<DIVIDEND-INCOME> 13,724,891
<INTEREST-INCOME> 12,794,450
<OTHER-INCOME> 0
<EXPENSES-NET> (8,038,540)
<NET-INVESTMENT-INCOME> 18,480,801
<REALIZED-GAINS-CURRENT> 15,975,924
<APPREC-INCREASE-CURRENT> 3,774,240
<NET-CHANGE-FROM-OPS> 38,230,965
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (646,373)
<DISTRIBUTIONS-OF-GAINS> (671,285)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 373,161
<NUMBER-OF-SHARES-REDEEMED> (213,154)
<SHARES-REINVESTED> 72,926
<NET-CHANGE-IN-ASSETS> (31,019,749)
<ACCUMULATED-NII-PRIOR> 3,454,171
<ACCUMULATED-GAINS-PRIOR> 21,037,694
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,213,769)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,038,540)
<AVERAGE-NET-ASSETS> 12,257,906
<PER-SHARE-NAV-BEGIN> 11.18
<PER-SHARE-NII> 0.58
<PER-SHARE-GAIN-APPREC> 0.54
<PER-SHARE-DIVIDEND> (0.62)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.98
<EXPENSE-RATIO> 1.17
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
MSDW INCOME BUILDER FUND
CLASS B
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 414,203,281
<INVESTMENTS-AT-VALUE> 394,149,443
<RECEIVABLES> 11,615,965
<ASSETS-OTHER> 115,387
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 405,880,795
<PAYABLE-FOR-SECURITIES> (903,933)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2,766,581)
<TOTAL-LIABILITIES> (3,670,514)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 408,550,366
<SHARES-COMMON-STOCK> 31,690,765
<SHARES-COMMON-PRIOR> 37,280,650
<ACCUMULATED-NII-CURRENT> 2,449,140
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,264,613
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (20,053,838)
<NET-ASSETS> 348,069,732
<DIVIDEND-INCOME> 13,724,891
<INTEREST-INCOME> 12,794,450
<OTHER-INCOME> 0
<EXPENSES-NET> (8,038,540)
<NET-INVESTMENT-INCOME> 18,480,801
<REALIZED-GAINS-CURRENT> 15,975,924
<APPREC-INCREASE-CURRENT> 3,774,240
<NET-CHANGE-FROM-OPS> 38,230,965
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17,881,658)
<DISTRIBUTIONS-OF-GAINS> (24,998,743)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,043,825
<NUMBER-OF-SHARES-REDEEMED> (12,509,897)
<SHARES-REINVESTED> 3,152,355
<NET-CHANGE-IN-ASSETS> (31,019,749)
<ACCUMULATED-NII-PRIOR> 3,454,171
<ACCUMULATED-GAINS-PRIOR> 21,037,694
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,213,769)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,038,540)
<AVERAGE-NET-ASSETS> 399,291,549
<PER-SHARE-NAV-BEGIN> 11.18
<PER-SHARE-NII> 0.50
<PER-SHARE-GAIN-APPREC> 0.53
<PER-SHARE-DIVIDEND> (0.53)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.98
<EXPENSE-RATIO> 1.90
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
MSDW INCOME BUILDER FUND
CLASS C
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 414,203,281
<INVESTMENTS-AT-VALUE> 394,149,443
<RECEIVABLES> 11,615,965
<ASSETS-OTHER> 115,387
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 405,880,795
<PAYABLE-FOR-SECURITIES> (903,933)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2,766,581)
<TOTAL-LIABILITIES> (3,670,514)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 408,550,366
<SHARES-COMMON-STOCK> 3,727,881
<SHARES-COMMON-PRIOR> 504,418
<ACCUMULATED-NII-CURRENT> 2,449,140
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,264,613
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (20,053,838)
<NET-ASSETS> 40,859,446
<DIVIDEND-INCOME> 13,724,891
<INTEREST-INCOME> 12,794,450
<OTHER-INCOME> 0
<EXPENSES-NET> (8,038,540)
<NET-INVESTMENT-INCOME> 18,480,801
<REALIZED-GAINS-CURRENT> 15,975,924
<APPREC-INCREASE-CURRENT> 3,774,240
<NET-CHANGE-FROM-OPS> 38,230,965
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (604,652)
<DISTRIBUTIONS-OF-GAINS> (346,036)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 114,511
<NUMBER-OF-SHARES-REDEEMED> (518,349)
<SHARES-REINVESTED> 72,635
<NET-CHANGE-IN-ASSETS> (31,019,749)
<ACCUMULATED-NII-PRIOR> 3,454,171
<ACCUMULATED-GAINS-PRIOR> 21,037,694
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,213,769)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,038,540)
<AVERAGE-NET-ASSETS> 16,095,483
<PER-SHARE-NAV-BEGIN> 11.16
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 0.55
<PER-SHARE-DIVIDEND> (0.53)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.96
<EXPENSE-RATIO> 1.90
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
MSDW INCOME BUILDER FUND
CLASS D
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 414,203,281
<INVESTMENTS-AT-VALUE> 394,149,443
<RECEIVABLES> 11,615,965
<ASSETS-OTHER> 115,387
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 405,880,795
<PAYABLE-FOR-SECURITIES> (903,933)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2,766,581)
<TOTAL-LIABILITIES> (3,670,514)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 408,550,366
<SHARES-COMMON-STOCK> 67,296
<SHARES-COMMON-PRIOR> 55,258
<ACCUMULATED-NII-CURRENT> 2,449,140
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,264,613
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (20,053,838)
<NET-ASSETS> 739,621
<DIVIDEND-INCOME> 13,724,891
<INTEREST-INCOME> 12,794,450
<OTHER-INCOME> 0
<EXPENSES-NET> (8,038,540)
<NET-INVESTMENT-INCOME> 18,480,801
<REALIZED-GAINS-CURRENT> 15,975,924
<APPREC-INCREASE-CURRENT> 3,774,240
<NET-CHANGE-FROM-OPS> 38,230,965
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (76,726)
<DISTRIBUTIONS-OF-GAINS> (40,395)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 449,722
<NUMBER-OF-SHARES-REDEEMED> (441,802)
<SHARES-REINVESTED> 4,118
<NET-CHANGE-IN-ASSETS> (31,019,749)
<ACCUMULATED-NII-PRIOR> 3,454,171
<ACCUMULATED-GAINS-PRIOR> 21,037,694
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,213,769)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,038,540)
<AVERAGE-NET-ASSETS> 857,624
<PER-SHARE-NAV-BEGIN> 11.18
<PER-SHARE-NII> 0.60
<PER-SHARE-GAIN-APPREC> 0.55
<PER-SHARE-DIVIDEND> (0.64)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.99
<EXPENSE-RATIO> 0.93
</TABLE>
ITEM 77M: Mergers
Morgan Stanley Dean Witter Income Builder Fund
On June 8, 1999 a Special Meeting of Shareholders of
TCW/DW Income and Growth Fund ("Income and Growth") was held
to consider and vote upon an Agreement and Plan of
Reorganization (the "Agreement and Plan") between Income and
Growth and Morgan Stanley Dean Witter Income Builder Fund
("Income Builder"), pursuant to which substantially all of
the assets of Income and Growth would be combined with those
of Income Builder and shareholders of Income and Growth
would become shareholders of Income Builder receiving shares
of Income Builder with a value equal to the value of their
holdings in Income and Growth. On February 25, 1999, the
Board of Trustees unanimously approved the Reorganization
Agreement, and on June 8, 1999 the Agreement and Plan was
approved by the affirmative vote of a majority of the shares
of Income and Growth represented in person or by proxy and
entitled to vote at the meeting.
On June 28, 1999, the Reorganization Plan between
Income and Growth and Income Builder was completed according
to the terms set forth above and in the Agreement and Plan.
On October 12, 1999, Income and Growth filed an application
with the Commission on Form N8-F for an Order declaring that
Income and Growth has ceased to be an investment company,
which Order is pending.
To the Shareholders and Board of Directors of
XYZ Fund
(2)
Report of Independent Accountants
To the Shareholders and Trustees of
Morgan Stanley Dean Witter Income Builder Fund
In planning and performing our audit of the financial
statements of Morgan Stanley Dean Witter Income Builder Fund
(the "Fund") for the year ended September 30, 1999, we
considered its internal control, including control activities
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more
of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to
the financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving internal control and its operation,
including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of
September 30, 1999.
This report is intended solely for the information and use of
management and the Trustees of the Fund and the Securities and
Exchange Commission and is not intended to be and should not be
used by anyone other than these specified parties.
PricewaterhouseCoopers LLP
New York, New York
November 9, 1999
