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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE BARRY FINK
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<CIK> 0001017382
<NAME> MSDW SPECIAL VALUE FUND - CLASS C
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<TABLE> <S> <C>
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<DISTRIBUTIONS-OF-GAINS> 0
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<SHARES-REINVESTED> 832
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</TABLE>
Report of Independent Accountants
To the Shareholders and Trustees of
Morgan Stanley Dean Witter Special Value Fund
In planning and performing our audit of the financial statements
of Morgan Stanley Dean Witter
Special Value Fund (the "Fund") for the year ended July 31, 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 July 31, 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
September 10, 1999
To the Shareholders and Board of Directors of
XYZ Fund
(2)
EXHIBIT 77(O) MORGAN STANLEY DEAN WITTER SPECIAL VALUE FUND
10f-3 transactions for the period February 1, 1999 - July 1,
1999 TOTAL ISSUED/ DATE PRICE SHARES % OF PRINCIPAL
PURCHASED SECURITY PURCHASED SHARE PURCHASED ASSETS AMOUNT
BY FUND BROKER(S) Mede America Corporation 2/1/99 $13.00
20,800 .074% $60,000,200.00 .832% Smith Barney Novoste
Corporation 3/15/99 $20.00 3,000 .017% $48,000,000.00 .125%
Piper Jaffray Wellpoint Health Networks, Inc. 6/29/99 $81.00
40,000 1.084% $810,000,000.00 .100% Bernstein B.C. Copper
Mountain Networks, Inc. 5/12/99 $21.00 1,400 .053%
$84,000,000.00 .006% Raymond James Time Warner Telecom Inc.
5/11/99 $14.00 27,700 .133% $252,000,000.00 .154% Scott &
Strignf American National Can Group, Inc.7/28/99 $17.00
125,000 .751% $510,000,000.00 .417% Credit Suisse First
Boston
