<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND TWO WORLD TRADE CENTER,
LETTER TO THE SHAREHOLDERS APRIL 30, 2000 NEW YORK, NEW YORK 10048
DEAR SHAREHOLDER:
For the six-month period ended April 30, 2000, the international equity markets
outpaced the U.S. market in local currency terms. However, weakness in the euro
and yen offset most of this gain, resulting in a return of 6.72 percent in U.S.
dollar terms for the Morgan Stanley Capital International Europe, Australia and
Far East Index (MSCI EAFE).
The period under review can be considered as having two distinct phases in the
international markets: a huge fourth-quarter 1999 rally (up 15 percent as
measured by the MSCI EAFE) followed by sharp volatility in the new year (down
10 percent through February, up 10 percent through mid-March, and then another
dip). Confronted with extended global equity valuations and central banks'
tightening of monetary policy, investors have balked. There have been more than
80 central bank tightenings worldwide over the past 12 months and global bond
yields (excluding Asia) have backed up more than 1 percent in the past year.
PERFORMANCE
For the six-month period ended April 30, 2000, Morgan Stanley Dean Witter
International Fund's Class A, B, C and D shares returned 6.15 percent,
5.69 percent, 5.69 percent and 6.24 percent, respectively. During the same
period the MSCI EAFE Index returned 6.72 percent.* The performance of the Fund's
four share classes varies because of differing expenses. The total return
figures given assume the reinvestment of all distributions but do not reflect
the deduction of any applicable sales charges.
----------------
* The Morgan Stanley Capital International Europe, Australia and Far East Index
(MSCI EAFE) measures the performance for a diverse range of global stock markets
within Europe, Australia and the Far East. The index does not include any
expenses, fees, charges, or reinvestment of dividends. The index is unmanaged
and should not be considered an investment.
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED
In Europe, the major drivers of the Fund's performance were its overweighting in
Spain, which turned in a solid performance for the period, and underweightings
in the United Kingdom, Switzerland and Belgium, all of which posted negative
returns. In Asia, the Fund's sector rotation from an early overweighting in
technology to a focus on old-economy stocks, along with its market allocations
to Hong Kong, contributed positively to its performance. The Fund's
overweighting in Japan during much of period and its limited exposure to the
emerging markets detracted from its performance.
PORTFOLIO STRATEGY
The Fund went into the long-awaited Y2K changeover fully invested, enabling it
to benefit greatly from the subsequent Japanese and European growth-stock
rallies. Over the past several months Morgan Stanley Dean Witter Investment
Management Inc., the Fund's sub-advisor, has edged the portfolio out of the
technology, media and telecommunications sector and into defensive sectors such
as financials, pharmaceuticals and foods. While confident in the long-term
potential for the technology hardware and equipment sector, which should benefit
from increased spending on information technology in Europe and Asia, the
sub-advisor is cautious about this sector in the short term, given rising
interest rates, excessive valuations and complacency in investor sentiment.
EUROPE
The Fund has remained below its benchmark allocation in Europe, chiefly because
of its significantly underweighted position in the United Kingdom. The
sub-advisor has not favored the U.K., because of the old-economy composition of
its market and the Monetary Policy Committee (MPC)'s clear intent to slow down
consumer demand and the housing market with interest-rate hikes. The sub-advisor
believes the MPC is near the completion of its tightening, however, in which
case the U.K. market may become increasingly appealing.
The economic news from Europe continued to improve during the period, with
manufacturing and consumer confidence reaching record highs and unemployment
continuing to fall. Along with this positive cyclical story, the European
markets' long-term dynamics are improving, as evidenced by increasing market
liberalization, competition and wage moderation. Despite this backdrop, the euro
weakened to below 0.90 versus the U.S. dollar. Although the marginal rate of
growth favors the eurozone, the absolute growth of the U.S. economy coupled with
the high demand from European investors for direct U.S. investments and U.S.
equities has undermined the euro. However, the currency's weakness does provide
some good news for European equities. The sub-advisor estimates
2
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED
that every fall of 10 percent in the trade-weighted euro adds roughly
0.7 percent to eurozone GDP, with only a 0.2 percent uptick in inflation.
Although the European fundamentals are good and improving, valuations there
remain expensive.
ASIA (EX-JAPAN)
In April the sub-advisor reduced the Fund's position in Hong Kong, making it
underweighted relative to the MSCI EAFE. The Hong Kong market has become heavily
skewed toward technology shares and is very closely correlated to the
performance of the Nasdaq index. From a macro perspective, the currency peg to
the U.S. dollar is a negative, because it means interest rates rise along with
those in the United States, but in a struggling economy.
Singapore suffered in the first quarter, following very strong performance -- up
25.1 percent -- in the fourth quarter of 1999. The first-quarter selloff was
largely the result of rotation within the region to small caps and the
technology, media and telecommunications sector. The Fund maintained a
significantly overweighted position in this market and consequently benefited in
April when investors rewarded Singapore for further market liberalization. The
Monetary Authority of Singapore removed limits on foreign ownership of local
banks and has overhauled brokerage commission structures as part of a broader
liberalization of the financial sector. The sub-advisor remains optimistic about
Singapore due to rising profits and solid fundamentals.
JAPAN
The Fund remains neutral to overweighted in Japan based on the sub-advisor's
long-term structural theme. There are signs the economy is continuing to
strengthen. Corporate earnings growth is positive and revisions are picking up
relative to other global markets. Imports and capital spending are rising and
business confidence is improving. Foreign investors have recently become net
sellers of Japanese equities, but we anticipate that demand from local investors
will rise to fill this gap.
LOOKING AHEAD
Morgan Stanley Dean Witter Investment Management Inc. maintains a favorable
outlook for the international markets. Regarding Japan, the sub-advisor believes
that with some revival of consumer spending over the near-to-medium term, a
self-sustaining economic recovery is nearly assured. In Asia, the economic and
fundamental news is positive and improving as pressures to reform the government
and corporate sectors continue to force change. This restructuring should
increase return on equity and earnings. The sub-advisor believes the outlook for
European equities remains
3
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED
generally positive. Economic growth has accelerated sharply, giving rise to a
healthy corporate earnings outlook. The expected continuation of a high level of
merger-and-acquisition activity should benefit the European equity markets, and
any recovery in the euro versus the U.S. dollar should strengthen returns to a
United States-based investor.
We appreciate your ongoing support of Morgan Stanley Dean Witter International
Fund and look forward to continuing to serve your investment needs.
Very truly yours,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
Charles A. Fiumefreddo Mitchell M. Merin
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>
4
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FUND PERFORMANCE APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
----------------------------------------------------------------------------------------------------
CLASS A* CLASS B**
----------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C>
Since Inception (6/28/99) 12.20%(1) 6.31%(2) Since Inception (6/28/99) 11.50%(1) 6.50%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C+ CLASS D++
----------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C>
Since Inception (6/28/99) 11.50%(1) 10.50%(2) Since Inception (6/28/99) 12.40%(1)
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
------------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
* The maximum front-end sales charge for Class A is 5.25%.
** The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%.
The CDSC declines to 0% after six years.
+ The maximum CDSC for Class C shares is 1% for shares redeemed within one
year of purchase.
++ Class D shares have no sales charge.
5
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, BONDS AND WARRANTS (78.4%)
AUSTRALIA (1.5%)
AIR FREIGHT/DELIVERY SERVICES
27,745 Mayne Nickless Ltd.............................................................. $ 55,834
------------
ALCOHOLIC BEVERAGES
127,993 Foster's Brewing Group Ltd...................................................... 322,972
------------
BEVERAGES - NON-ALCOHOLIC
46,378 Coca-Cola Amatil Ltd............................................................ 110,752
------------
CASINO/GAMBLING
23,585 TABCORP Holdings Ltd............................................................ 126,098
------------
CONTAINERS/PACKAGING
47,100 Amcor Ltd....................................................................... 139,290
46,286 Southcorp Holdings Ltd.......................................................... 144,200
------------
283,490
------------
DIVERSIFIED COMMERCIAL SERVICES
15,821 Brambles Industries, Ltd........................................................ 444,808
------------
DIVERSIFIED FINANCIAL SERVICES
AUD 24,300 K AMP Group Finance Services Ltd. 7.08% due 12/29/49*............................. 12,842
59,482 Colonial Ltd.................................................................... 306,749
------------
319,591
------------
ENGINEERING & CONSTRUCTION
19,776 Leighton Holdings Ltd........................................................... 52,255
------------
FOOD CHAINS
79,458 Coles Myer Ltd.................................................................. 297,182
83,253 Woolworth's Ltd................................................................. 279,811
------------
576,993
------------
FOREST PRODUCTS
13,471 Wesfarmers Limited.............................................................. 93,655
------------
INTERNATIONAL BANKS
98,047 National Australia Bank Ltd..................................................... 1,341,697
22,915 Suncorp-Metway Ltd.............................................................. 110,513
134,376 Westpac Banking Corp., Ltd...................................................... 856,710
------------
2,308,920
------------
LIFE INSURANCE
69,638 Amp Ltd......................................................................... 609,293
------------
MEDIA CONGLOMERATES
136,043 News Corporation Ltd............................................................ 1,725,629
120,664 News Corporation Ltd. (Pref.)................................................... 1,296,460
------------
3,022,089
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-SECTOR COMPANIES
92,649 Broken Hill Proprietary Co., Ltd................................................ $ 996,537
77,680 Pacific Dunlop Ltd.............................................................. 65,248
------------
1,061,785
------------
NATURAL GAS
36,753 Australian Gas Light Company Ltd................................................ 190,798
------------
OIL & GAS PRODUCTION
53,444 Santos Ltd...................................................................... 121,578
------------
OTHER METALS/MINERALS
10,491 Rio Tinto Ltd................................................................... 155,659
103,021 WMC Ltd......................................................................... 427,255
------------
582,914
------------
OTHER PHARMACEUTICALS
7,681 CSL Ltd......................................................................... 92,295
9,112 FH Faulding & Company Ltd....................................................... 36,408
------------
128,703
------------
OTHER TELECOMMUNICATIONS
80,283 Telstra Corp., Ltd.............................................................. 343,725
------------
PAPER
15,700 Paperlinx Ltd.*................................................................. 28,252
------------
PRECIOUS METALS
117,787 Normandy Mining Ltd............................................................. 58,399
------------
PROPERTY - CASUALTY INSURERS
30,190 QBE Insurance Group Ltd......................................................... 126,668
------------
REAL ESTATE
28,402 AMP Diversified Property Trust.................................................. 39,429
100,790 General Property Trust (Units) ++............................................... 155,796
39,469 Lend Lease Corporation Ltd...................................................... 427,201
23,205 Stockland Trust Group (Units) ++................................................ 46,968
98,188 Westfield Trust
(Units) ++.................................................................... 179,837
------------
849,231
------------
SPECIALTY CHEMICALS
11,366 Orica Ltd....................................................................... 44,884
------------
SPECIALTY FOODS/CANDY
87,572 Goodman Fielder Ltd............................................................. 64,873
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
STEEL/IRON ORE
38,814 North Ltd....................................................................... $ 66,675
------------
TOTAL AUSTRALIA................................................................. 11,995,239
------------
AUSTRIA (0.1%)
ALCOHOLIC BEVERAGES
588 BBAG Oesterreichische Brau-Beteiligungs AG...................................... 22,823
------------
BUILDING PRODUCTS
4,433 Wienerberger Baustoffindustrie AG............................................... 94,695
------------
CONTAINERS/PACKAGING
769 Mayr-Melnhof Karton AG.......................................................... 36,265
------------
DIVERSIFIED COMMERCIAL SERVICES
1,363 Flughafen Wien AG............................................................... 43,686
------------
ELECTRIC UTILITIES
1,959 Oesterreichische
Elektrizitatwirtschafts AG (Verbund) (A Shares)............................... 187,155
2,150 OMV AG.......................................................................... 176,575
------------
363,730
------------
ENGINEERING & CONSTRUCTION
108 BWT AG.......................................................................... 31,710
963 VA Technologie AG............................................................... 57,319
------------
89,029
------------
HOME BUILDING
302 Bau Holding AG.................................................................. 12,298
------------
INTERNATIONAL BANKS
6,967 Bank Austria AG................................................................. 309,051
------------
MULTI-LINE INSURANCE
454 Generali Holding Vienna AG...................................................... 66,030
------------
SEMICONDUCTORS
191 Austria Mikro Systeme International AG*......................................... 15,452
------------
STEEL/IRON ORE
673 Boehler-Uddeholm AG............................................................. 26,220
------------
TOBACCO
1,421 Austria Tabakwerke AG........................................................... 50,118
------------
TOTAL AUSTRIA................................................................... 1,129,397
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BELGIUM (0.0%)
ELECTRIC UTILITIES
1,333 Electrabel S.A.................................................................. $ 322,190
------------
OTHER PHARMACEUTICALS
1,600 UCB S.A......................................................................... 53,813
------------
TOTAL BELGIUM................................................................... 376,003
------------
BRAZIL (1.2%)
ALCOHOLIC BEVERAGES
422,000 Companhia Cervejaria Brahma (Pref.)............................................. 314,751
------------
CELLULAR TELEPHONE
19,332,351 Telesp Celular Participacoes S.A. (Pref.)....................................... 341,787
------------
ELECTRIC UTILITIES
44,732,000 Centrais Electricas Brasileiras S.A............................................. 662,330
------------
FOOD CHAINS
10,219,000 Companhia Brasileira de Distribuicao Grupo Pao de Acucar (Pref.)................ 287,939
------------
INTEGRATED OIL COMPANIES
5,825,000 Petroleo Brasileiro S.A......................................................... 1,287,293
4,383,000 Petroleo Brasileiro S.A. (Pref.)................................................ 1,035,211
------------
2,322,504
------------
INTERNATIONAL BANKS
66,636,000 Banco Bradesco S.A.............................................................. 371,836
64,675,000 Banco Bradesco S.A. (Pref.)..................................................... 471,663
8,659,000 Banco Itau S.A. (Pref.)......................................................... 641,053
------------
1,484,552
------------
METALS FABRICATIONS
6,859,000 Companhia Siderurgica Nacional.................................................. 187,202
------------
NON - U.S. UTILITIES
19,826,000 Companhia Energetica de Minas Gerais S.A. (Pref.)............................... 302,319
------------
OTHER METALS/MINERALS
35,000 Companhia Vale do Rio Doce (Pref.) (A Shares)................................... 864,365
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
22,237,000 Embratel Participacoes S.A. (Pref.)............................................. $ 491,426
21,198,000 Telesp - Telecomunicacoes de Sao Paulo S.A...................................... 315,042
40,837,000 Telesp - Telecomunicacoes de Sao Paulo S.A. (Pref.)............................. 1,017,541
------------
1,824,009
------------
PAPER
98,000 Aracruz Celulose S.A. (Pref.) (B Shares)........................................ 186,796
------------
TELECOMMUNICATIONS
22,490,000 Tele Centro Sul Participacoes S.A. (Pref.)...................................... 289,512
22,918,000 Tele Norte Leste Participacoes S.A. (Pref.)..................................... 467,223
------------
756,735
------------
TOBACCO
32,000 Souza Cruz S.A.................................................................. 194,475
------------
TOTAL BRAZIL.................................................................... 9,729,764
------------
DENMARK (0.0%)
MAJOR PHARMACEUTICALS
800 Novo-Nordisk AS (Series B)...................................................... 107,373
------------
FINLAND (3.2%)
ALCOHOLIC BEVERAGES
6,350 Hartwall Oyj ABP................................................................ 93,105
------------
BUILDING PRODUCTS
1,923 Sanitec Oyj..................................................................... 22,341
------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
7,227 Metra Oyj (B Shares)............................................................ 117,591
------------
E.D.P. SERVICES
7,682 Tietoenator Oyj ABP............................................................. 370,096
------------
FOOD CHAINS
18,773 Kesko Oyj (B Shares)............................................................ 204,776
------------
INDUSTRIAL MACHINERY/COMPONENTS
16,819 Metso Oyj....................................................................... 221,683
------------
OTHER METALS/MINERALS
12,313 Outokumpu Oyj................................................................... 144,943
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PAPER
29,009 UPM-Kymmene Oyj................................................................. $ 751,521
------------
PROPERTY - CASUALTY INSURERS
11,435 Sampo Insurance Co. Ltd. (A Shares)............................................. 432,408
------------
SPECIALTY FOODS/CANDY
17,441 Raisio Group PLC................................................................ 44,391
------------
TELECOMMUNICATIONS
6,051 Sonera Oyj...................................................................... 332,772
------------
TELECOMMUNICATIONS EQUIPMENT
397,800 Nokia Oyj+...................................................................... 22,816,972
------------
TOTAL FINLAND................................................................... 25,552,599
------------
FRANCE (8.8%)
ALCOHOLIC BEVERAGES
7,819 LVMH-Moet Hennessy Louis Vuitton+............................................... 3,280,809
------------
AUTO PARTS: O.E.M.
7,722 Valeo S.A....................................................................... 428,177
------------
AUTOMOTIVE AFTERMARKET
11,392 Compagnie Generale des Etablissements Michelin (B Shares)....................... 377,969
------------
BEVERAGES - NON-ALCOHOLIC
4,994 Pernod-Ricard................................................................... 225,842
------------
BUILDING MATERIALS
4,010 Lafarge S.A..................................................................... 332,068
------------
CABLE TELEVISION
10,325 Canal Plus...................................................................... 1,989,710
------------
COMPUTER SOFTWARE
6,970 Dassault Systemes S.A........................................................... 536,003
------------
CONSUMER SPECIALTIES
5,655 Societe BIC S.A................................................................. 225,149
------------
CONTAINERS/PACKAGING
6,849 Pechiney S.A. (A Shares)........................................................ 300,081
------------
DIVERSIFIED COMMERCIAL SERVICES
2,769 Sodexho Alliance S.A............................................................ 414,805
------------
DIVERSIFIED MANUFACTURING
8,087 Compagnie de Saint-Gobain....................................................... 1,103,398
------------
E.D.P. SERVICES
5,910 Cap Gemini S.A.................................................................. 1,160,393
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRICAL PRODUCTS
14,199 Schneider Electric S.A.......................................................... 929,296
------------
ENGINEERING & CONSTRUCTION
2,573 Bouygues S.A.................................................................... $ 1,641,878
12,952 Suez Lyonnaise des Eaux......................................................... 2,030,906
------------
3,672,784
------------
FARMING/SEEDS/MILLING
3,325 Eridania Beghin-Say S.A......................................................... 274,587
------------
FOOD CHAINS
49,586 Carrefour S.A.+................................................................. 3,227,275
6,736 Etablissements Economiques du Casino Guichard-Perrachon S.A..................... 614,752
------------
3,842,027
------------
HOTELS/RESORTS
15,568 Accor S.A....................................................................... 578,081
------------
INTERNATIONAL BANKS
33,319 Banque Nationale de Paris+...................................................... 2,692,512
5,226 Banque Nationale de Paris - CVG (Warrants due 7/1/02)*.......................... 29,690
8,330 Societe Generale (A Shares)..................................................... 1,724,895
------------
4,447,097
------------
MAJOR CHEMICALS
65,555 Aventis S.A..................................................................... 3,605,164
------------
MAJOR PHARMACEUTICALS
64,933 Sanofi-Synthelabo S.A.*......................................................... 2,422,939
------------
MEDICAL SPECIALTIES
613 Essilor International S.A....................................................... 163,822
------------
MILITARY/GOV'T/TECHNICAL
13,917 Thomson CSF..................................................................... 494,637
------------
MOTOR VEHICLES
3,645 PSA Peugeot Citroen............................................................. 754,108
------------
MULTI-LINE INSURANCE
27,424 AXA+............................................................................ 4,065,825
------------
MULTI-SECTOR COMPANIES
12,432 Lagardere S.C.A................................................................. 841,901
42,291 Vivendi......................................................................... 4,182,546
------------
5,024,447
------------
OIL REFINING/MARKETING
68,548 Total Fina Elf.................................................................. 10,399,561
------------
OTHER SPECIALTY STORES
10,090 Pinault-Printemps-Redoute S.A................................................... 2,035,225
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
5,831 France Telecom S.A.+............................................................ 902,125
------------
PACKAGE GOODS/COSMETICS
5,441 L'Oreal S.A.+................................................................... $ 3,689,618
------------
PACKAGED FOODS
9,021 Groupe Danone................................................................... 1,972,121
------------
REAL ESTATE
2,100 Fonciere Lyonnaise.............................................................. 213,415
3,970 Gecina.......................................................................... 367,008
5,460 Klepierre....................................................................... 451,646
5,750 Simco S.A....................................................................... 371,622
9,420 Societe des Immeubles de France................................................. 154,044
1,010 Societe Immobiliere de Location pour l'Industrie et le Commerce................. 133,123
5,750 Unibail......................................................................... 726,518
------------
2,417,376
------------
SPECIALTY CHEMICALS
7,115 Air Liquide S.A................................................................. 926,151
------------
SPECIALTY STEELS
20,801 Usinor S.A...................................................................... 273,222
------------
TELECOMMUNICATIONS EQUIPMENT
23,475 Alcatel+........................................................................ 5,441,388
700 Sagem S.A. (New)................................................................ 870,458
------------
6,311,846
------------
TOTAL FRANCE.................................................................... 69,576,463
------------
GERMANY (6.2%)
AIRLINES
14,014 Deutsche Lufthansa AG........................................................... 292,354
------------
AUTO PARTS: O.E.M.
7,050 Continental AG.................................................................. 126,887
------------
BANKING
29,868 Bayerische Hypo - und Vereinsbank AG*+.......................................... 1,848,916
42,903 Deutsche Bank AG (Registered Shares)+........................................... 2,882,013
28,050 Dresdner Bank AG................................................................ 1,162,684
------------
5,893,613
------------
BUILDING MATERIALS
2,334 Heidelberger Zement AG.......................................................... 137,268
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER SOFTWARE
4,070 SAP AG.......................................................................... $ 1,909,009
3,644 SAP AG (Pref.).................................................................. 2,143,120
------------
4,052,129
------------
DEPARTMENT STORES
7,850 Karstadquelle AG................................................................ 239,044
------------
DIVERSIFIED ELECTRONIC PRODUCTS
47,287 Siemens AG...................................................................... 6,976,284
------------
DIVERSIFIED MANUFACTURING
7,800 MAN AG.......................................................................... 253,120
------------
MAJOR CHEMICALS
44,867 BASF AG......................................................................... 1,939,284
47,333 Bayer AG........................................................................ 1,959,821
------------
3,899,105
------------
MAJOR PHARMACEUTICALS
6,100 Merck KGaA...................................................................... 175,219
4,200 Schering AG..................................................................... 593,668
------------
768,887
------------
MEDICAL SPECIALTIES
4,200 Fresenius Medical Care AG....................................................... 309,242
------------
MEDICAL/DENTAL DISTRIBUTORS
4,150 Gehe AG......................................................................... 132,787
------------
MOTOR VEHICLES
62,738 DaimlerChrylser AG (Registered Shares)+......................................... 3,649,846
20,629 Volkswagen AG................................................................... 775,385
3,650 Volkswagen AG (Pref.)........................................................... 80,292
------------
4,505,523
------------
MOVIES/ENTERTAINMENT
5,600 EM. TV & Merchandising AG....................................................... 442,865
------------
MULTI-LINE INSURANCE
15,150 Allianz AG (Registered Shares)+................................................. 5,832,167
11,855 Muenchener Rueckver AG (Registered Shares)+..................................... 3,459,159
------------
9,291,326
------------
MULTI-SECTOR COMPANIES
29,490 IVG Holding AG.................................................................. 384,672
11,900 Linde AG........................................................................ 457,563
15,087 Preussag AG..................................................................... 622,619
46,809 RWE AG.......................................................................... 1,506,248
2,050 RWE AG (Pref.).................................................................. 53,854
36,416 ThyssenKrupp AG................................................................. 761,349
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
63,300 VEBA AG......................................................................... $ 3,127,283
74,669 Viag AG......................................................................... 1,438,931
------------
8,352,519
------------
OTHER SPECIALTY STORES
5,400 Douglas Holding AG.............................................................. 167,874
27,200 Metro AG........................................................................ 1,032,260
------------
1,200,134
------------
PACKAGE GOODS/COSMETICS
10,850 Beiersdorf AG................................................................... 705,180
------------
REAL ESTATE
6,132 WCM Beteiligungs-und Grundbesitz AG............................................. 183,384
------------
TELECOMMUNICATIONS
17,300 Deutsche Telecom AG+............................................................ 1,108,662
------------
TOTAL GERMANY................................................................... 48,870,313
------------
HONG KONG (0.6%)
BANKING
52,900 Hang Seng Bank Ltd.............................................................. 485,595
------------
BROADCASTING
12,000 Television Broadcasts Ltd....................................................... 82,038
------------
DIVERSIFIED MANUFACTURING
24,000 Johnson Electric Holdings Ltd................................................... 189,495
------------
HOTELS/RESORTS
24,000 HongKong & Shanghai Hotels Ltd. (The)........................................... 12,941
98,000 Regal Hotels International Holdings Ltd......................................... 5,536
26,000 Shangri-La Asia Ltd............................................................. 29,040
------------
47,517
------------
INTERNATIONAL BANKS
34,725 Bank of East Asia, Ltd.......................................................... 75,120
------------
MULTI-SECTOR COMPANIES
36,000 Hopewell Holdings Ltd........................................................... 16,639
99,000 Hutchison Whampoa, Ltd.......................................................... 1,436,238
55,270 New World Development Co., Ltd.................................................. 74,151
39,000 Swire Pacific Ltd. (Class A).................................................... 220,308
------------
1,747,336
------------
NATURAL GAS
261,300 Hong Kong & China Gas Co., Ltd.................................................. 286,826
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
NEWSPAPERS
52,000 South China Morning Post (Holdings) Ltd......................................... $ 55,411
------------
REAL ESTATE
56,000 Cheung Kong (Holdings) Ltd...................................................... 668,627
54,000 Hang Lung Development Co........................................................ 41,943
28,813 Hysan Development Co., Ltd...................................................... 32,367
86,485 Sino Land Co., Ltd.............................................................. 32,477
59,000 Sun Hung Kai Properties Ltd..................................................... 463,950
60,000 Wharf (Holdings) Ltd. (The)..................................................... 124,405
------------
1,363,769
------------
TELECOMMUNICATIONS
31,179 Cable & Wireless HKT Ltd........................................................ 73,453
------------
UTILITIES
96,500 CLP Holdings Ltd................................................................ 432,380
------------
TOTAL HONG KONG................................................................. 4,838,940
------------
INDIA (0.3%)
BUILDING MATERIALS
90,000 Gujarat Ambuja Cements Ltd. (GDR)............................................... 405,000
------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
28,000 Larsen & Toubro Ltd. (Registered Shares) (GDR).................................. 383,600
71,000 Tata Engineering & Locomotive Co. Ltd. (GDR) - 144A**........................... 213,000
------------
596,600
------------
OTHER TELECOMMUNICATIONS
25,000 Videsh Sanchar Nigam Ltd. (GDR)................................................. 472,500
------------
SPECIALTY CHEMICALS
33,200 Reliance Industries Ltd. (GDR).................................................. 851,580
------------
TOTAL INDIA..................................................................... 2,325,680
------------
ITALY (2.1%)
APPAREL
77,548 Benetton Group SpA.............................................................. 142,745
------------
AUTO PARTS: O.E.M.
105,536 Pirelli SpA..................................................................... 252,781
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKING
234,091 Banca Intesa SpA................................................................ $ 861,794
195,409 Unicredito Italiano SpA......................................................... 792,215
------------
1,654,009
------------
BROADCASTING
55,386 Mediaset SpA.................................................................... 898,674
------------
ENGINEERING & CONSTRUCTION
8,209 Immsi SpA*...................................................................... 12,835
19,787 Impregilo SpA................................................................... 10,486
8,209 Sirti SpA....................................................................... 15,446
------------
38,767
------------
FOOD CHAINS
9,811 La Rinascente SpA............................................................... 44,591
------------
INTEGRATED OIL COMPANIES
491,483 Ente Nazionale Idrocarburi SpA+................................................. 2,443,767
------------
INTERNATIONAL BANKS
18,335 Banca Commerciale Italiana...................................................... 86,666
213,227 Banca di Roma SpA*.............................................................. 225,417
18,335 Banca Intesa - BCI (Warrants due 11/15/02)...................................... 32,083
15,038 Banca Popolare di Milano........................................................ 89,672
29,467 Mediobanca SpA.................................................................. 244,284
64,489 San Paolo - IMI SpA............................................................. 902,756
------------
1,580,878
------------
LIFE INSURANCE
59,312 Assicurazioni Generali+......................................................... 1,687,527
------------
MOTOR VEHICLES
12,389 Fiat SpA........................................................................ 303,725
2,384 Fiat SpA (Pref.)................................................................ 34,890
------------
338,615
------------
MULTI-LINE INSURANCE
22,163 Runione Adriatica di Sicurta SpA................................................ 226,443
6,168 Societa Assicuratrice Industriale SpA........................................... 48,442
------------
274,885
------------
MULTI-SECTOR COMPANIES
24,429 Snia SpA........................................................................ 22,672
------------
NATURAL GAS
38,128 Italgas SpA..................................................................... 168,093
------------
NON - U.S. UTILITIES
581,288 Enel SpA*+...................................................................... 2,462,301
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
19,610 Olivetti SpA*................................................................... $ 64,885
------------
PAPER
3,969 Burgo (Cartiere) SpA............................................................ 37,521
5,485 Reno de Medici SpA.............................................................. 12,166
------------
49,687
------------
REAL ESTATE
64,489 Beni Stabili SpA................................................................ 31,948
------------
RESTAURANTS
10,310 Autogrill SpA................................................................... 98,404
------------
SPECIALTY FOODS/CANDY
79,395 Parmalat Finanziara SpA......................................................... 82,923
------------
TELECOMMUNICATIONS
339,465 Telecom Italia Mobile SpA....................................................... 3,240,024
80,711 Telecom Italia Mobile SpA - RNC................................................. 317,676
21,079 Telecom Italia SpA.............................................................. 294,693
3,320 Telecom Italia SpA - RNC........................................................ 20,914
------------
3,873,307
------------
TOTAL ITALY..................................................................... 16,211,459
------------
JAPAN (21.6%)
AIR FREIGHT/DELIVERY SERVICES
82,000 Nippon Express Co., Ltd......................................................... 516,810
5,000 Yamato Transport Co., Ltd....................................................... 124,757
------------
641,567
------------
AIRLINES
45,000 Japan Airlines Company, Ltd..................................................... 139,728
------------
ALCOHOLIC BEVERAGES
36,000 Asahi Breweries, Ltd............................................................ 365,955
168,000 Kirin Brewery Co., Ltd.......................................................... 2,184,419
3,000 Takara Shuzo Co., Ltd........................................................... 64,319
------------
2,614,693
------------
APPAREL
25,000 Onward Kashiyama Co., Ltd....................................................... 322,983
------------
AUTO PARTS: O.E.M.
37,000 Denso Corporation............................................................... 904,399
46,000 NGK Spark Plug Co., Ltd......................................................... 486,314
------------
1,390,713
------------
AUTOMOTIVE AFTERMARKET
65,000 Bridgestone Corp................................................................ 1,408,604
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKING
203,000 Asahi Bank Ltd. (The)........................................................... $ 975,511
343,000 Bank of Tokyo-Mitsubishi, Ltd................................................... 4,418,649
22,000 Joyo Bank, Ltd. (The)........................................................... 78,477
105,000 Mitsubishi Trust & Banking+..................................................... 880,094
64,000 Shizuoka Bank, Ltd. (The)....................................................... 591,443
239,000 Sumitomo Bank Ltd. (The)........................................................ 2,983,911
------------
9,928,085
------------
BOOKS/MAGAZINES
100 Kadokawa Shoten Publishing Co., Ltd............................................. 16,172
------------
BROADCASTING
21,000 Tokyo Broadcasting System, Inc.................................................. 912,115
------------
BUILDING MATERIALS
143,000 Ube Industries, Ltd............................................................. 310,554
------------
BUILDING PRODUCTS
4,000 Tostem Corporation.............................................................. 58,812
77,000 Toto Ltd........................................................................ 471,777
------------
530,589
------------
CLOTHING/SHOE/ACCESSORY STORES
400 Shimamura Co., Ltd.............................................................. 58,146
------------
COMPUTER SOFTWARE
3,900 Fuji Soft ABC Inc............................................................... 230,663
500 Konami Co., Ltd. (New)*......................................................... 30,496
------------
261,159
------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
128,000 Komatsu Ltd..................................................................... 615,100
6,200 SMC Corporation................................................................. 1,231,864
------------
1,846,964
------------
CONSUMER ELECTRONICS/APPLIANCES
17,000 Pioneer Corp.................................................................... 463,451
53,000 Sharp Corp...................................................................... 1,021,209
29,700 Sony Corp....................................................................... 3,406,127
33,700 Sony Corp. (New)*............................................................... 3,892,893
------------
8,783,680
------------
CONSUMER SPECIALTIES
70,000 Casio Computer Co., Ltd......................................................... 769,800
------------
CONTAINERS/PACKAGING
3,000 Toyo Seikan Kaisha, Ltd......................................................... 52,953
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DEPARTMENT STORES
21,400 Marui Co. Ltd................................................................... $ 401,460
61,000 Mitsukoshi Ltd.*................................................................ 248,600
------------
650,060
------------
DIVERSIFIED COMMERCIAL SERVICES
24,000 Secom Co., Ltd.................................................................. 2,009,426
------------
DIVERSIFIED ELECTRONIC PRODUCTS
243,000 Hitachi Ltd.+................................................................... 2,896,867
15,600 Kyocera Corp.................................................................... 2,605,046
140,000 Matsushita Electric Industrial Co., Ltd.+....................................... 3,700,213
108,000 NEC Corp........................................................................ 2,934,294
177,000 Sanyo Electric Co. Ltd.......................................................... 1,179,346
215,000 Toshiba Corp.................................................................... 2,082,248
------------
15,398,014
------------
DIVERSIFIED MANUFACTURING
27,000 Kawasaki Heavy Industries, Ltd.*................................................ 30,191
192,000 Kubota Corp..................................................................... 624,563
201,000 Mitsubishi Electric Corp........................................................ 1,714,472
------------
2,369,226
------------
E.D.P. SERVICES
200 CSK Corp........................................................................ 7,670
------------
ELECTRICAL PRODUCTS
61,000 Furukawa Electric Co., Ltd. (The)............................................... 845,014
51,000 NGK Insulators, Ltd............................................................. 468,949
2,000 Nidec Corp...................................................................... 138,619
2,400 Nidec Corp. (New)*.............................................................. 166,343
111,000 Sumitomo Electric Industries.................................................... 1,476,102
18,000 Taiyo Yuden Co., Ltd............................................................ 1,272,526
------------
4,367,553
------------
ELECTRONIC COMPONENTS
100 Hirose Electric Co., Ltd........................................................ 12,069
19,000 Murata Manufacturing Co., Ltd................................................... 3,687,275
1,000 Omron Corp...................................................................... 27,169
------------
3,726,513
------------
ELECTRONIC DATA PROCESSING
135,000 Fujitsu Ltd. +.................................................................. 3,817,577
------------
ELECTRONIC DISTRIBUTORS
21,000 Softbank Corp................................................................... 5,162,185
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONIC PRODUCTION EQUIPMENT
8,000 Advantest Corp.................................................................. $ 1,826,818
9,000 Tokyo Electron Ltd.............................................................. 1,464,652
------------
3,291,470
------------
ENGINEERING & CONSTRUCTION
144,000 Kajima Corp..................................................................... 334,017
6,000 Kinden Corp..................................................................... 37,372
34,000 Obayashi Corp................................................................... 118,141
107,000 Shimizu Corporation............................................................. 288,735
147,000 Taisei Corporation.............................................................. 205,129
------------
983,394
------------
FINANCE COMPANIES
10,700 Acom Co., Ltd................................................................... 1,029,360
3,400 Credit Saison Co., Ltd.......................................................... 55,457
5,200 Nichiei Co., Ltd................................................................ 102,837
4,800 Orix Corp....................................................................... 684,003
8,600 Promise Co., Ltd................................................................ 695,407
11,200 Takefuji Corporation............................................................ 1,183,033
------------
3,750,097
------------
FLUID CONTROLS
52,000 Ebara Corp...................................................................... 600,203
------------
FOOD CHAINS
93,000 Daiei, Inc...................................................................... 275,021
36,000 Ito-Yokado Co., Ltd.+........................................................... 2,624,896
33,000 Jusco Co........................................................................ 609,925
25,000 Mycal Corporation............................................................... 76,241
------------
3,586,083
------------
HOME BUILDING
72,000 Daiwa House Industry Co., Ltd................................................... 479,069
76,000 Sekisui House Ltd............................................................... 695,315
------------
1,174,384
------------
INDUSTRIAL MACHINERY/COMPONENTS
4,000 Daikin Industries, Ltd.......................................................... 75,963
19,500 Fanuc, Ltd.+.................................................................... 2,039,922
4,000 Minebea Co., Ltd................................................................ 48,794
379,000 Mitsubishi Heavy Industries Ltd.+............................................... 1,176,823
------------
3,341,502
------------
INDUSTRIAL SPECIALTIES
158,000 Asahi Glass Company, Ltd........................................................ 1,384,197
1,000 Hoya Corp....................................................................... 101,654
1,000 Nitto Denko Corp................................................................ 39,183
------------
1,525,034
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNATIONAL BANKS
6,000 77 Bank, Ltd. (The)............................................................. $ 43,027
36,000 Bank of Fukuoka, Ltd. (The)..................................................... 237,205
136,000 Bank of Yokohama Ltd............................................................ 520,322
41,000 Chuo Mitsui Trust & Banking Co., Ltd. (The)..................................... 184,521
228,000 Daiwa Bank Ltd.................................................................. 615,248
246,000 Fuji Bank, Ltd. (The)+.......................................................... 2,046,022
27,000 Gunma Bank Ltd. (The)........................................................... 135,237
216,000 Industrial Bank of Japan, Ltd.+................................................. 1,776,546
245,000 Sakura Bank, Ltd. (The)......................................................... 1,716,200
168,000 Tokai Bank Ltd. (The)........................................................... 872,526
------------
8,146,854
------------
INVESTMENT BANKERS/BROKERS/SERVICES
94,000 Daiwa Securities Co., Ltd....................................................... 1,433,324
149,000 Nomura Securities Co., Ltd...................................................... 3,745,310
------------
5,178,634
------------
MAJOR PHARMACEUTICALS
60,000 Sankyo Co., Ltd................................................................. 1,319,656
127,000 Takeda Chemical Industries, Ltd................................................. 8,344,608
------------
9,664,264
------------
MARINE TRANSPORTATION
130,000 Nippon Yusen Kabushiki Kaisha................................................... 516,588
------------
MEAT/POULTRY/FISH
38,000 Nippon Meat Packers, Inc........................................................ 479,346
------------
MEDICAL SPECIALTIES
4,000 Olympus Optical Co., Ltd........................................................ 65,502
25,000 Terumo Corp..................................................................... 755,475
------------
820,977
------------
METALS FABRICATIONS
93,000 Mitsubishi Materials Corp....................................................... 309,398
9,000 NSK Ltd......................................................................... 69,282
------------
378,680
------------
MOTOR VEHICLES
44,000 Honda Motor Co.+................................................................ 1,963,959
160,000 Nissan Motor Co., Ltd.*......................................................... 725,996
190,000 Toyota Motor Corp............................................................... 9,428,888
------------
12,118,843
------------
MOVIES/ENTERTAINMENT
7,400 Oriental Land Co. Ltd........................................................... 784,382
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
NATURAL GAS
247,000 Osaka Gas Co. Ltd............................................................... $ 673,367
246,000 Tokyo Gas Co., Ltd.............................................................. 541,059
------------
1,214,426
------------
NON - U.S. UTILITIES
105,600 Kansai Electric Power Co. Inc................................................... 1,658,996
40,800 Tohoku Electric Power Co., Inc.................................................. 480,355
------------
2,139,351
------------
OFFICE EQUIPMENT/SUPPLIES
64,000 Canon, Inc...................................................................... 2,921,726
------------
OIL REFINING/MARKETING
18,000 Japan Energy Corp.*............................................................. 15,470
180,000 Nippon Mitsubishi Oil Corp...................................................... 622,124
6,000 Showa Shell Sekiyu K.K.......................................................... 23,011
------------
660,605
------------
OTHER CONSUMER SERVICES
14,600 Benesse Corporation............................................................. 1,272,322
------------
OTHER METALS/MINERALS
50,000 Sumitomo Metal Mining Co........................................................ 152,943
------------
OTHER PHARMACEUTICALS
38,000 Chugai Pharmaceutical Co........................................................ 730,432
7,000 Daiichi Pharmaceutical Co., Ltd................................................. 120,192
16,000 Eisai Co., Ltd.................................................................. 465,761
12,000 Kyowa Hakko Kogyo Co., Ltd...................................................... 114,777
15,000 Shionogi & Co., Ltd............................................................. 231,494
49,000 Taisho Pharmaceutical Co., Ltd.................................................. 1,639,220
45,000 Yamanouchi Pharmaceutical Co., Ltd.............................................. 2,374,550
------------
5,676,426
------------
OTHER TELECOMMUNICATIONS
80 Nippon Telegraph & Telephone Corp............................................... 990,666
------------
PACKAGE GOODS/COSMETICS
75,000 Kao Corp........................................................................ 2,280,288
33,000 Shiseido Company, Ltd........................................................... 416,579
1,100 Uni-Charm Corp.................................................................. 74,411
------------
2,771,278
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PAPER
14,000 Nippon Paper Industries Co., Ltd................................................ $ 88,495
157,000 Oji Paper Co. Ltd............................................................... 983,698
------------
1,072,193
------------
PHOTOGRAPHIC PRODUCTS
50,000 Fuji Photo Film Co., Ltd.+...................................................... 2,000,739
1,000 Nikon Corporation............................................................... 35,117
------------
2,035,856
------------
PRECISION INSTRUMENTS
48,000 Yokogawa Electric Corp.......................................................... 365,955
------------
PRINTING/FORMS
78,000 Dai Nippon Printing Co., Ltd.................................................... 1,321,264
63,000 Toppan Printing Co. Ltd......................................................... 657,887
------------
1,979,151
------------
PROPERTY - CASUALTY INSURERS
7,000 Mitsui Marine & Fire Insurance Co., Ltd......................................... 30,727
7,000 Sumitomo Marine & Fire Insurance Co., Ltd. (The)................................ 36,873
120,000 Tokio Marine & Fire Insurance Co................................................ 1,168,838
------------
1,236,438
------------
RAILROADS
152 Central Japan Railway Co........................................................ 814,712
345 East Japan Railway Co.+......................................................... 2,040,477
135,000 Kinki Nippon Railway Co......................................................... 509,010
78,000 Tobu Railway Co., Ltd........................................................... 206,155
83,000 Tokyu Corp...................................................................... 325,220
------------
3,895,574
------------
REAL ESTATE
76,000 Mitsubishi Estate Co., Ltd...................................................... 853,341
49,000 Mitsui Fudosan Co., Ltd......................................................... 497,200
------------
1,350,541
------------
RECREATIONAL PRODUCTS/TOYS
700 Namco Ltd....................................................................... 28,528
10,900 Nintendo Co., Ltd............................................................... 1,813,141
15,000 Sega Enterprises Ltd.*.......................................................... 268,922
11,200 Shimano, Inc.................................................................... 208,040
------------
2,318,631
------------
RESTAURANTS
21,000 Skylark Co., Ltd................................................................ 609,371
------------
SEMICONDUCTORS
7,800 Rohm Co., Ltd................................................................... 2,609,371
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SPECIALTY CHEMICALS
102,000 Asahi Chemical Industry Co., Ltd................................................ $ 586,304
6,000 Kaneka Corp..................................................................... 77,072
143,000 Mitsubishi Chemical Corp........................................................ 572,211
15,000 Shin-Etsu Chemical Co., Ltd..................................................... 791,517
152,000 Sumitomo Chemical Co Ltd........................................................ 755,716
------------
2,782,820
------------
SPECIALTY FOODS/CANDY
102,000 Ajinomoto Co., Inc.............................................................. 1,164,125
2,400 Nissan Food Products Co., Ltd................................................... 55,004
------------
1,219,129
------------
STEEL/IRON ORE
144,400 Kawasaki Steel Corp............................................................. 224,186
653,000 Nippon Steel Co................................................................. 1,466,399
61,000 Sumitomo Metal Industries, Ltd.*................................................ 39,460
------------
1,730,045
------------
TEXTILES
8,000 Kuraray Co., Ltd................................................................ 65,650
94,000 Teijin Ltd...................................................................... 419,573
97,000 Toray Industries Inc............................................................ 351,391
------------
836,614
------------
TOBACCO
116 Japan Tobacco, Inc.............................................................. 852,232
------------
UTILITIES
146,800 Tokyo Electric Power Co., Ltd................................................... 3,459,385
------------
WHOLESALE DISTRIBUTORS
24,000 Mitsubishi Corp................................................................. 208,484
27,000 Mitsui & Co..................................................................... 199,861
15,000 Sumitomo Corporation............................................................ 167,729
600 World Co., Ltd.................................................................. 45,024
------------
621,098
------------
TOTAL JAPAN..................................................................... 170,611,611
------------
NETHERLANDS (5.4%)
AIR FREIGHT/DELIVERY SERVICES
38,613 TNT Post Group NV............................................................... 842,381
------------
ALCOHOLIC BEVERAGES
39,478 Heineken NV+.................................................................... 2,189,016
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED COMMERCIAL SERVICES
7,915 Vedior NV....................................................................... $ 83,819
------------
DIVERSIFIED ELECTRONIC PRODUCTS
106,660 Koninklijke (Royal) Philips Electronics NV+..................................... 4,757,530
------------
DIVERSIFIED FINANCIAL SERVICES
77,128 ING Groep NV.................................................................... 4,207,963
------------
E.D.P. SERVICES
3,651 Getronics NV*................................................................... 217,711
------------
FINANCE
20,929 STMicroelectronics NV*.......................................................... 3,993,234
------------
FINANCIAL PUBLISHING/SERVICES
53,333 Elsevier NV..................................................................... 518,733
22,652 Wolters Kluwer NV............................................................... 534,533
------------
1,053,266
------------
FOOD CHAINS
51,258 Koninklijke Ahold NV............................................................ 1,195,124
------------
INTEGRATED OIL COMPANIES
206,391 Royal Dutch Petroleum Co........................................................ 11,894,437
------------
INTERNATIONAL BANKS
117,253 ABN-AMRO Holding NV+............................................................ 2,414,104
------------
LIFE INSURANCE
47,402 Aegon N.V.+..................................................................... 3,406,139
------------
OFFICE EQUIPMENT/SUPPLIES
7,251 OCE NV.......................................................................... 96,889
------------
PACKAGED FOODS
71,847 Unilever NV..................................................................... 3,262,834
------------
PAINTS/COATINGS
11,062 Akzo Nobel NV................................................................... 452,793
------------
REAL ESTATE
17,200 Rodamco Continental Europe NV................................................... 595,686
24,560 Uni-Invest NV................................................................... 266,784
------------
862,470
------------
TELECOMMUNICATIONS
3,047 Koninklijke KPN NV+............................................................. 307,024
------------
WHOLESALE DISTRIBUTORS
6,488 Buhrmann NV..................................................................... 167,197
8,555 Hagemeyer NV.................................................................... 168,361
------------
335,558
------------
TOTAL NETHERLANDS............................................................... 41,572,292
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL (0.4%)
ALCOHOLIC BEVERAGES
613 Unicer-Uniao Cervejeira, S.A.................................................... $ 16,650
------------
ELECTRIC UTILITIES
76,753 EDP-Electricidade de Portugal, S.A.............................................. 1,360,485
------------
FOOD DISTRIBUTORS
8,898 Jeronimo Martins SGPS, S.A...................................................... 158,692
------------
INTERNATIONAL BANKS
106,590 Banco Comercial Portugues, S.A.................................................. 499,954
11,136 Banco Espirito Santo e Comercial de Lisboa, S.A. (Registered Shares)............ 258,127
------------
758,081
------------
INVESTMENT BANKERS/BROKERS/SERVICES
53,030 BPI-SGPS, S.A. (Registered Shares).............................................. 172,571
------------
OTHER SPECIALTY STORES
5,218 Sonae SGPS, S.A................................................................. 209,648
------------
OTHER TRANSPORTATION
33,885 Brisa-Auto Estradas de Portugal, S.A............................................ 239,327
------------
PAPER
10,383 Portucel Industrial Empresa..................................................... 65,218
------------
PROPERTY - CASUALTY INSURERS
1,273 Companhia de Seguros Tranquilidade.............................................. 37,376
------------
TELECOMMUNICATIONS
8,846 Portugal Telecom S.A. (Registered Shares)....................................... 98,663
------------
TOTAL PORTUGAL.................................................................. 3,116,711
------------
SINGAPORE (2.1%)
AEROSPACE
669,000 Singapore Technologies Engineering Ltd.......................................... 940,157
------------
AIRLINES
256,000 Singapore Airlines Ltd.......................................................... 2,653,238
------------
ALCOHOLIC BEVERAGES
72,000 Fraser & Neave Ltd.............................................................. 231,877
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKING
262,115 DBS Group Holdings Ltd.......................................................... $ 3,606,806
210,104 United Overseas Bank Ltd........................................................ 1,464,011
------------
5,070,817
------------
E.D.P. PERIPHERALS
20,500 Creative Technology, Ltd........................................................ 498,156
------------
ELECTRONIC COMPONENTS
54,000 Venture Manufacturing Ltd....................................................... 632,393
------------
HOTELS/RESORTS
192,000 Hotel Properties Ltd............................................................ 170,886
162,000 United Overseas Land, Ltd....................................................... 117,625
------------
288,511
------------
INTERNATIONAL BANKS
263,950 Overseas - Chinese Banking Corporation, Ltd..................................... 1,808,300
------------
MARINE TRANSPORTATION
146,000 Neptune Orient Lines Ltd.*...................................................... 130,800
------------
METALS FABRICATIONS
104,000 NatSteel Ltd.................................................................... 254,550
------------
MULTI-SECTOR COMPANIES
183,000 Keppel Corp., Ltd............................................................... 424,335
409,000 Sembcorp Industries Ltd......................................................... 431,081
------------
855,416
------------
NEWSPAPERS
83,000 Singapore Press Holdings Ltd.................................................... 1,623,258
------------
OTHER SPECIALTY STORES
63,000 Cycle and Carriage Ltd.......................................................... 186,292
------------
REAL ESTATE
157,000 City Developments Ltd........................................................... 712,466
301,750 DBS Land Ltd.................................................................... 427,588
66,000 First Capital Corporation Ltd................................................... 66,085
97,000 Parkway Holdings Ltd............................................................ 278,311
352,000 United Industrial Corp.......................................................... 147,371
------------
1,631,821
------------
TELECOMMUNICATIONS
109,100 Singapore Telecommunications Ltd................................................ 157,153
------------
TOTAL SINGAPORE................................................................. 16,962,739
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SOUTH KOREA (0.8%)
CELLULAR TELEPHONE
13,289 SK Telecom Co., Ltd. (ADR)...................................................... $ 426,078
------------
DIVERSIFIED ELECTRONIC PRODUCTS
35,857 L.G. Electronics, Inc. (GDR) - 144A**........................................... 300,302
25,804 Samsung Electronics............................................................. 2,087,544
------------
2,387,846
------------
ELECTRIC UTILITIES
85,450 Korea Electric Power Corp. (ADR)................................................ 1,399,244
------------
INTERNATIONAL BANKS
29,392 Kookmin Bank (GDR).............................................................. 312,290
30,803 Shinhan Bank (GDR).............................................................. 583,717
------------
896,007
------------
SPECIALTY CHEMICALS
25,661 L.G. Chemical Ltd. (GDR)........................................................ 564,542
------------
STEEL/IRON ORE
13,289 Pohang Iron & Steel Co., Ltd. (ADR)............................................. 279,069
------------
TOTAL SOUTH KOREA............................................................... 5,952,786
------------
SPAIN (2.2%)
BUILDING PRODUCTS
4,506 Zardoya Otis S.A................................................................ 36,986
------------
ELECTRIC UTILITIES
102,348 Iberdrola S.A................................................................... 1,312,714
------------
ENGINEERING & CONSTRUCTION
5,599 ACS, Actividades de Construccion y Servicios, S.A............................... 155,128
8,524 Fomento de Construcciones y Contratas S.A....................................... 174,724
13,521 Grupo Dragados, S.A............................................................. 103,241
------------
433,093
------------
FARMING/SEEDS/MILLING
2,973 Azucarera Ebro Agricolas, S.A................................................... 39,294
------------
HOTELS/RESORTS
8,922 Sol Melia S.A.*................................................................. 109,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNATIONAL BANKS
232,464 Banco Bilbao Vizcaya Argentaria, S.A.+.......................................... $ 3,169,647
319,968 Banco Santander Central Hispano, S.A.+.......................................... 3,336,060
------------
6,505,707
------------
NATURAL GAS
46,281 Gas Natural SDG, S.A............................................................ 773,236
------------
NON - U.S. UTILITIES
33,683 Union Electrica Fenosa, S.A..................................................... 645,118
------------
OIL REFINING/MARKETING
96,133 Repsol-YPF, S.A................................................................. 1,966,160
------------
OTHER TRANSPORTATION
24,178 Autopistas Concesionaria Espanola S.A........................................... 213,185
------------
PROPERTY - CASUALTY INSURERS
6,856 Corporacion Mapfre S.A.......................................................... 103,827
------------
REAL ESTATE
6,792 Corporacion Financiera Alba, S.A................................................ 177,809
15,820 Inmobiliaria Colonial, S.A...................................................... 208,515
28,983 Metrovacesa S.A................................................................. 488,710
26,470 Prima Inmobiliaria, S.A.*....................................................... 215,348
111,430 Vallehermoso SA................................................................. 753,597
------------
1,843,979
------------
RESTAURANTS
20,667 TelePizza, S.A.*................................................................ 167,010
------------
SPECIALTY STEELS
4,740 Acerinox S.A.................................................................... 188,719
------------
TELECOMMUNICATIONS
20,932 Telefonica S.A.*................................................................ 465,786
------------
TOBACCO
16,319 Altadis, S.A.*.................................................................. 191,803
9,614 Altadis, S.A.................................................................... 112,298
------------
304,101
------------
UTILITIES
106,340 Endesa S.A...................................................................... 2,306,381
------------
WATER SUPPLY
16,442 Sociedad General de Aguas de Barcelona, S.A..................................... 240,926
------------
TOTAL SPAIN..................................................................... 17,655,222
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SWEDEN (3.5%)
BANKING
59,300 Skandinaviska Enskilda Banken................................................... $ 649,892
------------
CLOTHING/SHOE/ACCESSORY STORES
80,800 Hennes & Mauritz AB (B Shares).................................................. 2,150,546
------------
CONSUMER ELECTRONICS/APPLIANCES
30,400 Electrolux AB (Series B)........................................................ 515,047
------------
DIVERSIFIED COMMERCIAL SERVICES
38,700 Securitas AB (B Shares)......................................................... 1,004,060
------------
DIVERSIFIED MANUFACTURING
14,400 Trelleborg AB (Series B)........................................................ 96,622
------------
E.D.P. SERVICES
7,000 WM-Data AB (B Shares)........................................................... 245,804
------------
ENGINEERING & CONSTRUCTION
15,500 JM AB (B Shares)................................................................ 277,340
12,600 Skanska AB (B Shares)........................................................... 460,764
------------
738,104
------------
INDUSTRIAL MACHINERY/COMPONENTS
12,700 Atlas Copco AB (A Shares)....................................................... 297,542
6,700 Atlas Copco AB (B Shares)....................................................... 153,599
19,600 Sandvik AB (A Shares)*.......................................................... 473,446
8,000 Sandvik AB (B Shares)........................................................... 191,454
------------
1,116,041
------------
INTERNATIONAL BANKS
52,200 ForeningsSparbanken AB.......................................................... 770,557
73,846 Nordic Baltic Holding AB........................................................ 467,197
64,200 Svenska Handelsbanken AB (A Shares)............................................. 850,773
------------
2,088,527
------------
INVESTMENT BANKERS/BROKERS/SERVICES
7,300 OM Gruppen AB................................................................... 303,687
------------
LIFE INSURANCE
50,900 Skandia Forsakrings AB.......................................................... 2,441,943
------------
METALS FABRICATIONS
8,600 SKF AB (B Shares)............................................................... 184,655
------------
MOTOR VEHICLES
6,000 Volvo AB (A Shares)............................................................. 140,571
22,500 Volvo AB (B Shares)............................................................. 547,271
------------
687,842
------------
OTHER TELECOMMUNICATIONS
860 NetCom AB (B Shares)*........................................................... 61,263
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PACKAGE GOODS/COSMETICS
21,900 Svenska Cellulosa AB (B Shares)................................................. $ 416,345
------------
REAL ESTATE
24,560 Castellum AB.................................................................... 227,964
47,145 Drott AB (B Shares)............................................................. 421,780
14,180 Tornet Fastighnets AB........................................................... 183,948
------------
833,692
------------
STEEL/IRON ORE
8,200 SSAB Svenskt Stal AB (Series A)................................................. 94,452
------------
TELECOMMUNICATIONS EQUIPMENT
159,300 Ericsson (L.M.) Telephone Co. AB (B Shares)*.................................... 14,198,242
------------
TOTAL SWEDEN.................................................................... 27,826,764
------------
SWITZERLAND (5.1%)
AIRLINES
1,210 SAirGroup....................................................................... 214,943
------------
BANKING
15,310 UBS AG (Registered Shares)*+.................................................... 3,755,065
------------
BUILDING MATERIALS
530 Holderbank Financiere Glarus AG (B Shares)...................................... 599,965
------------
CONSUMER SPECIALTIES
390 The Swatch Group AG............................................................. 418,391
------------
DIVERSIFIED COMMERCIAL SERVICES
1,380 Adecco S.A. (Registered Shares)................................................. 1,133,577
------------
DIVERSIFIED FINANCIAL SERVICES
21,930 ABB Ltd.+....................................................................... 2,463,401
3,570 Zurich Allied AG+............................................................... 1,519,105
------------
3,982,506
------------
DIVERSIFIED MANUFACTURING
460 Alusuisse Lonza Group AG (Registered Shares).................................... 291,606
------------
INTERNATIONAL BANKS
20,100 Credit Suisse Group (Registered Shares)+........................................ 3,634,709
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MAJOR PHARMACEUTICALS
5,650 Novartis AG (Registered Shares)+................................................ $ 7,901,341
123 Roche Holdings AG - Bearer*+.................................................... 1,474,486
623 Roche Holdings AG - Genusshein*+................................................ 6,513,543
------------
15,889,370
------------
METALS FABRICATIONS
240 Georg Fischer AG (Registered Shares)............................................ 68,896
------------
MULTI-SECTOR COMPANIES
310 Sulzer AG (Registered Shares)................................................... 198,676
------------
OTHER SPECIALTY STORES
480 Valora Holding AG............................................................... 124,835
------------
OTHER TELECOMMUNICATIONS
540 Swisscom AG (Registered Shares)+................................................ 190,596
------------
PACKAGED FOODS
4,575 Nestle S.A. (Registered Shares)+................................................ 8,073,842
------------
PROPERTY - CASUALTY INSURERS
1,110 Schweizerische
Rueckversicherungs-Gesellschaft (Registered Shares)+.......................... 1,785,562
------------
TOTAL SWITZERLAND............................................................... 40,362,539
------------
UNITED KINGDOM (13.3%)
ADVERTISING
32,500 WPP Group PLC................................................................... 521,953
------------
AEROSPACE
163,715 British Aerospace PLC........................................................... 1,001,872
216,400 Marconi PLC..................................................................... 2,693,942
------------
3,695,814
------------
ALCOHOLIC BEVERAGES
42,643 Bass PLC........................................................................ 497,411
334,457 Diageo PLC...................................................................... 2,698,691
------------
3,196,102
------------
ASSISTED LIVING SERVICES
47,375 Smith & Nephew PLC.............................................................. 136,128
------------
AUTO PARTS: O.E.M.
78,483 GKN PLC......................................................................... 1,082,470
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BOOKS/MAGAZINES
60,893 Reed International PLC.......................................................... $ 420,404
------------
BUILDING PRODUCTS
53,051 Caradon PLC..................................................................... 131,838
------------
CABLE TELEVISION
84,997 British Sky Broadcasting Group PLC.............................................. 2,079,273
------------
CASINO/GAMBLING
81,216 Hilton Group PLC................................................................ 339,960
------------
CATALOG/SPECIALTY DISTRIBUTION
53,719 Great Universal Stores PLC...................................................... 323,316
------------
CELLULAR TELEPHONE
2,912,932 Vodafone AirTouch PLC........................................................... 13,324,258
------------
COMPUTER SOFTWARE & SERVICES
51,514 Sage Group (The) PLC............................................................ 568,882
------------
COMPUTER/VIDEO CHAINS
71,940 New Dixons Group PLC............................................................ 292,752
------------
DEPARTMENT STORES
145,261 Marks & Spencer, PLC............................................................ 529,642
------------
DIVERSIFIED COMMERCIAL SERVICES
57,992 British Airport Authority PLC................................................... 373,579
8,706 Capita Group PLC................................................................ 222,710
36,639 Compass Group PLC............................................................... 518,429
75,129 Hays PLC........................................................................ 514,896
143,971 Rentokil Initial PLC............................................................ 393,005
------------
2,022,619
------------
DIVERSIFIED FINANCIAL SERVICES
74,192 Abbey National PLC.............................................................. 842,944
78,986 Allied Zurich PLC*.............................................................. 782,092
367,991 HSBC Holdings PLC............................................................... 4,063,817
263,235 Lloyds TSB Group PLC............................................................ 2,567,619
------------
8,256,472
------------
DIVERSIFIED MANUFACTURING
32,829 TI Group PLC.................................................................... 177,828
------------
DRUGSTORE CHAINS
52,168 Boots Co. PLC................................................................... 402,908
------------
E.D.P. SERVICES
16,795 Logica PlC...................................................................... 504,764
19,552 SEMA Group PLC.................................................................. 313,399
------------
818,163
------------
ELECTRIC UTILITIES
110,916 Scottish Power PLC.............................................................. 885,923
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONIC DATA PROCESSING
3,264 Psion PLC....................................................................... $ 194,522
------------
ELECTRONIC DISTRIBUTORS
26,378 Misys PLC....................................................................... 300,312
------------
ENGINEERING & CONSTRUCTION
36,659 BICC Group (The) PLC............................................................ 44,697
11,216 Carillion PLC................................................................... 17,072
36,122 Taylor Woodrow PLC.............................................................. 88,365
------------
150,134
------------
FINANCIAL PUBLISHING/SERVICES
63,017 Reuters Group PLC............................................................... 1,124,618
------------
FOOD CHAINS
96,667 Sainsbury (J.) PLC.............................................................. 504,481
162,503 Tesco PLC....................................................................... 552,755
------------
1,057,236
------------
INDUSTRIAL MACHINERY/COMPONENTS
209,065 Invensys PLC.................................................................... 998,513
------------
INDUSTRIAL SPECIALTIES
96,938 Pilkington PLC.................................................................. 106,148
------------
INTEGRATED OIL COMPANIES
1,175,568 BP Amoco PLC.................................................................... 10,124,572
------------
INTERNATIONAL BANKS
74,535 Barclays PLC.................................................................... 1,900,907
120,855 Halifax PLC..................................................................... 1,124,395
125,000 Royal Bank of Scotland Group PLC................................................ 1,934,705
------------
4,960,007
------------
INVESTMENT BANKERS/BROKERS/SERVICES
8,072 Schroders PLC................................................................... 122,491
------------
INVESTMENT MANAGERS
28,461 Amvescap PLC.................................................................... 410,449
------------
LIFE INSURANCE
100,418 Prudential Corp................................................................. 1,537,857
------------
MAJOR CHEMICALS
38,426 Imperial Chemicals Industries PLC............................................... 328,258
------------
MAJOR PHARMACEUTICALS
120,833 AstraZeneca Group PLC+.......................................................... 5,046,656
251,058 Glaxo Wellcome PLC.............................................................. 7,724,777
416,776 SmithKline Beecham PLC.......................................................... 5,686,851
------------
18,458,284
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MARINE TRANSPORTATION
39,280 Peninsular & Orient Steam Navigation Co......................................... $ 386,801
------------
MEDICAL SPECIALTIES
26,930 Nycomed Amersham PLC............................................................ 205,374
------------
MOVIES/ENTERTAINMENT
37,334 Emi Group PLC................................................................... 356,621
46,660 Rank Group PLC.................................................................. 106,353
------------
462,974
------------
MULTI-LINE INSURANCE
50,176 CGU PLC......................................................................... 715,818
273,665 Legal & General Group PLC....................................................... 711,970
------------
1,427,788
------------
MUTUAL FUNDS
25,211 3i Group PLC.................................................................... 504,743
------------
NON - U.S. UTILITIES
36,188 National Grid Group PLC......................................................... 296,493
95,260 National Power PLC.............................................................. 430,557
35,422 United Utilities PLC............................................................ 338,357
------------
1,065,407
------------
OIL & GAS PRODUCTION
75,784 LASMO PLC....................................................................... 126,830
------------
OIL REFINING/MARKETING
22,507 Burmah Castrol PLC.............................................................. 552,334
------------
OIL/GAS TRANSMISSION
269,148 BG Group PLC.................................................................... 1,601,096
373,042 Centrica PLC.................................................................... 1,321,052
------------
2,922,148
------------
OTHER METALS/MINERALS
34,054 Rio Tinto PLC (Registered Shares)............................................... 526,282
------------
OTHER SPECIALTY STORES
78,804 Kingfisher PLC.................................................................. 643,509
------------
PACKAGED FOODS
323,762 Unilever PLC.................................................................... 1,937,296
------------
PAPER
52,009 Arjo Wiggins Appleton PLC....................................................... 152,877
34,696 Rexam PLC....................................................................... 132,165
------------
285,042
------------
RAILROADS
25,134 Railtrack Group PLC............................................................. 317,380
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
REAL ESTATE
285,589 British Land Company PLC........................................................ $ 1,897,400
132,000 Burford Holdings PLC............................................................ 169,059
144,583 Canary Wharf Finance PLC*....................................................... 788,228
47,430 Capital Shopping Centers PLC.................................................... 279,203
10,500 Frogmore Estates PLC............................................................ 73,470
311,150 Grantchester Holdings PLC....................................................... 698,337
119,110 Great Portland Estates PLC...................................................... 388,309
91,560 Hammerson PLC................................................................... 599,419
160,459 Land Securities PLC............................................................. 1,930,247
155,204 MEPC PLC........................................................................ 1,047,418
145,754 Slough Estates PLC.............................................................. 803,667
82,290 Wates City of London Properties PLC............................................. 95,860
------------
8,770,617
------------
RESTAURANTS
94,686 Granada Group PLC............................................................... 920,635
------------
SEMICONDUCTORS
40,035 ARM Holdings PLC*............................................................... 407,294
------------
SPECIALTY CHEMICALS
37,745 Boc Group PLC................................................................... 619,672
------------
SPECIALTY FOODS/CANDY
199,751 Cadbury Schweppes PLC........................................................... 1,362,012
38,568 Tate & Lyle PLC................................................................. 135,682
------------
1,497,694
------------
SPECIALTY STEELS
73,607 Corus Group PLC................................................................. 98,321
------------
TELECOMMUNICATIONS
48,943 British Telecommunications PLC.................................................. 874,970
------------
TOBACCO
176,838 British American Tobacco PLC.................................................... 1,066,386
------------
WATER SUPPLY
6,663 Angian Water PLC................................................................ 60,309
35,807 Thames Water PLC................................................................ 450,485
------------
510,794
------------
TOTAL UNITED KINGDOM............................................................ 105,210,397
------------
TOTAL COMMON AND PREFERRED STOCKS, BONDS AND WARRANTS
(IDENTIFIED COST $613,502,781).................................................. 619,984,287
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a)(30.1%)
U.S. GOVERNMENT AGENCY
238,000 K Federal Home Loan Mortgage Corp. 5.88% due 05/01/00 (AMORTIZED COST
$237,974,084)................................................................. $237,974,084
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $851,476,865) (b)........................................................ 108.5% 857,958,375
LIABILITIES IN EXCESS OF OTHER ASSETS..................................................... (8.5) (67,444,252)
----- -------------
NET ASSETS................................................................................ 100.0% $ 790,514,122
----- -------------
----- -------------
</TABLE>
---------------------
ADR American Depository Receipt.
GDR Global Depository Receipt.
K In thousands.
+ Some or all of these securities are segregated in connection with open
forward foreign currency contracts.
++ Consists of one or more class of securities traded together as a unit;
stock with attached warrants.
* Non-income producing security.
** Resale is restricted to qualified institutional investors
(a) Purchased on a discount basis. The interest rate shown has been adjusted to
reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $49,517,377 and the
aggregate gross unrealized depreciation is $43,035,868, resulting in net
unrealized appreciation of $6,481,509.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
FUTURES CONTRACTS OPEN AT APRIL 30, 2000:
<TABLE>
<CAPTION>
NUMBER OF LONG/ DESCRIPTION, DELIVERY MONTH, UNDERLYING FACE UNREALIZED
CONTRACTS SHORT AND YEAR AMOUNT AT VALUE GAIN/LOSS
-------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
123 Long IBEX 35 PLUS May/2000 12,500,023 $ 410,332
318 Long CAC40 10EU May/2000 18,142,976 455,273
83 Long EURX DAX INDEX June/2000 14,711,222 (727,533)
43 Long MIB 30 INDEX June/2000 9,610,192 (770,220)
72 Long FTSE 100 June/2000 7,526,555 (386,739)
27 Long HKFE June/2000 2,721,110 (36,397)
39 Long TSE TOPIX 100 June/2000 6,090,934 (117,133)
40 Long TSE TOPIX 100 June/2000 6,248,960 (121,985)
180 Long TSE TOPIX 100 June/2000 6,191,664 (291,101)
15 Long TSE TOPIX 100 June/2000 6,062,286 24,258
15 Long TSE TOPIX 100 June/2000 6,067,831 22,179
18 Long TSE TOPIX 100 June/2000 6,077,072 22,456
13 Long TSE TOPIX 100 June/2000 6,078,921 15,618
26 Long TSE TOPIX 100 June/2000 6,086,314 26,430
15 Long TSE TOPIX 100 June/2000 6,088,162 14,555
16 Long TSE TOPIX 100 June/2000 6,090,010 14,786
18 Long TSE TOPIX 100 June/2000 6,091,858 15,803
14 Long TSE TOPIX 100 June/2000 6,093,707 11,644
15 Long TSE TOPIX 100 June/2000 6,099,251 10,396
------------
Net unrealized loss........................................................ $ (1,407,378)
============
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 2000:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION
TO DELIVER FOR DATE (DEPRECIATION)
-------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,650,616 JPY 175,097,322 5/01/00 (32,491)
$ 7,334,847 GBP 4,637,245 5/02/00 (132,277)
$ 1,592,206 GBP 1,009,662 5/02/00 (24,000)
$ 1,101,160 EUR 1,190,533 5/02/00 (18,965)
$ 1,254,535 EUR 1,356,269 5/03/00 (21,687)
$ 76,732 SEK 685,751 5/03/00 (44)
$ 6,094,754 SEK 54,415,187 5/04/00 (9,474)
$ 9,517,817 EUR 10,458,794 5/04/00 (10,773)
$ 17,069,147 EUR 18,743,504 5/04/00 (31,302)
$ 228,980 GBP 145,569 5/05/00 (2,882)
$ 255,158 GBP 164,203 5/05/00 (118)
$ 1,414,986 GBP 908,819 5/08/00 (3,408)
$ 25,828 GBP 16,615 5/08/00 (22)
JPY 767,139,000 $ 7,182,008 5/08/00 80,184
JPY 673,514,000 $ 6,134,007 5/08/00 (101,079)
JPY 2,176,798,350 $ 20,097,852 5/08/00 (53,956)
JPY 848,102,040 $ 7,824,000 5/08/00 (27,343)
JPY 929,168,000 $ 8,714,763 5/08/00 112,948
JPY 34,251,000 $ 321,455 5/08/00 4,375
$ 37,151,707 JPY 3,912,669,174 5/08/00 (929,996)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 2000:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION
TO DELIVER FOR DATE (DEPRECIATION)
-------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,824,718 JPY 400,448,000 5/08/00 (117,553)
$ 3,788,883 JPY 396,696,000 5/08/00 (116,451)
$ 11,938,122 JPY 1,264,844,000 5/08/00 (228,772)
JPY 1,518,985,000 $ 14,289,134 5/08/00 227,063
JPY 1,971,930,697 $ 18,793,000 5/08/00 537,763
$ 12,082,116 JPY 1,227,543,000 5/08/00 (718,082)
$ 24,022,083 JPY 2,507,031,181 5/08/00 (813,129)
JPY 789,343,268 $ 7,594,586 5/08/00 287,205
$ 337,330 EUR 364,406 5/15/00 (6,086)
$ 19,742,526 EUR 21,707,082 5/31/00 (10,788)
$ 9,694,796 EUR 10,632,007 5/31/00 (30,301)
$ 2,520,243 EUR 2,764,455 5/31/00 (7,353)
$ 52,368,328 EUR 54,066,000 6/07/00 (3,083,564)
EUR 16,490,000 $ 16,053,510 6/07/00 1,021,775
$ 3,110,469 EUR 3,207,000 6/07/00 (187,075)
$ 765,991 EUR 796,000 6/12/00 (40,158)
EUR 15,055,625 $ 14,427,805 6/12/00 699,334
$ 18,072,615 EUR 18,574,880 6/12/00 (1,127,743)
$ 2,529,634 GBP 1,598,000 6/12/00 (46,742)
GBP 1,790,000 $ 2,799,560 6/12/00 18,348
$ 7,796,390 GBP 4,900,000 6/12/00 (183,015)
$ 39,899,330 JPY 4,139,754,960 6/19/00 (1,193,965)
JPY 1,565,500,000 $ 15,210,104 6/19/00 607,559
$ 12,029,254 JPY 1,241,395,000 6/19/00 (358,980)
JPY 667,308,926 $ 6,440,895 7/21/00 180,139
$ 9,500,000 JPY 987,050,000 7/21/00 (239,403)
JPY 175,097,000 $ 1,674,768 7/21/00 31,991
------------
Net unrealized depreciation.................. $ (6,100,294)
============
</TABLE>
CURRENCY ABBREVIATION:
------------------------
<TABLE>
<S> <C>
AUD Australian Dollar.
EUR Euro.
GBP British Pound.
JPY Japanese Yen.
SEK Swedish Krona.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
SUMMARY OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Advertising....................................................................... $ 521,953 0.1%
Aerospace......................................................................... 4,635,970 0.6
Air Freight/Delivery Services..................................................... 1,539,782 0.2
Airlines.......................................................................... 3,300,263 0.4
Alcoholic Beverages............................................................... 12,282,798 1.6
Apparel........................................................................... 465,728 0.1
Assisted Living Services.......................................................... 136,128 0.0
Auto Parts: O.E.M................................................................. 3,281,029 0.4
Automotive Aftermarket............................................................ 1,786,573 0.2
Banking........................................................................... 27,437,076 3.5
Beverages - Non-Alcoholic......................................................... 336,594 0.0
Books/Magazines................................................................... 436,576 0.1
Broadcasting...................................................................... 1,892,827 0.2
Building Materials................................................................ 1,784,854 0.2
Building Products................................................................. 816,450 0.1
Cable Television.................................................................. 4,068,983 0.5
Casino/Gambling................................................................... 466,058 0.1
Catalog/Specialty Distribution.................................................... 323,316 0.0
Cellular Telephone................................................................ 14,092,124 1.8
Clothing/Shoe/Accessory Stores.................................................... 2,208,693 0.3
Computer Software................................................................. 4,849,291 0.6
Computer Software & Services...................................................... 568,882 0.1
Computer/Video Chains............................................................. 292,752 0.0
Construction/Agricultural Equipment/Trucks........................................ 2,561,155 0.3
Consumer Electronics/Appliances................................................... 9,298,727 1.2
Consumer Specialties.............................................................. 1,413,340 0.2
Containers/Packaging.............................................................. 672,788 0.1
Department Stores................................................................. 1,418,746 0.2
Diversified Commercial Services................................................... 7,156,799 0.9
Diversified Electronic Products................................................... 29,519,673 3.7
Diversified Financial Services.................................................... 16,766,533 2.1
Diversified Manufacturing......................................................... 4,481,295 0.6
Drugstore Chains.................................................................. 402,908 0.1
E.D.P. Peripherals................................................................ 498,156 0.1
E.D.P. Services................................................................... 2,819,837 0.4
Electric Utilities................................................................ 5,984,426 0.8
Electric Utilities: West.......................................................... 322,190 0.0
Electrical Products............................................................... 5,296,850 0.7
Electronic Components............................................................. 4,358,906 0.6
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electronic Data Processing........................................................ $ 4,012,099 0.5%
Electronic Distributors........................................................... 5,462,497 0.7
Electronic Production Equipment................................................... 3,291,470 0.4
Engineering & Construction........................................................ 6,157,559 0.8
Farming/Seeds/Milling............................................................. 313,881 0.0
Finance........................................................................... 3,993,234 0.5
Finance Companies................................................................. 3,750,097 0.5
Financial Publishing/Services..................................................... 2,177,884 0.3
Fluid Controls.................................................................... 600,203 0.1
Food Chains....................................................................... 10,794,768 1.4
Food Distributors................................................................. 158,692 0.0
Forest Products................................................................... 93,655 0.0
Home Building..................................................................... 1,186,682 0.2
Hotels/Resorts.................................................................... 1,023,109 0.1
Industrial Machinery/Components................................................... 5,677,739 0.7
Industrial Specialties............................................................ 1,631,182 0.2
Integrated Oil Companies.......................................................... 26,785,280 3.4
International Banks............................................................... 41,417,911 5.2
Investment Bankers/Brokers/Services............................................... 5,777,383 0.7
Investment Managers............................................................... 410,449 0.1
Life Insurance.................................................................... 9,682,764 1.2
Major Chemicals................................................................... 7,832,527 1.0
Major Pharmaceuticals............................................................. 47,311,118 6.0
Marine Transportation............................................................. 1,034,189 0.1
Meat/Poultry/Fish................................................................. 479,346 0.1
Media Conglomerates............................................................... 3,022,089 0.4
Medical Specialties............................................................... 1,499,415 0.2
Medical/Dental Distributors....................................................... 132,787 0.0
Metals Fabrications............................................................... 1,073,983 0.1
Military/Gov't/Technical.......................................................... 494,637 0.1
Motor Vehicles.................................................................... 18,404,931 2.3
Movies/Entertainment.............................................................. 1,690,221 0.2
Multi-Line Insurance.............................................................. 15,125,854 1.9
Multi-Sector Companies............................................................ 17,262,853 2.2
Mutual Funds...................................................................... 504,743 0.1
Natural Gas....................................................................... 2,633,379 0.3
Newspapers........................................................................ 1,678,669 0.2
Non - U.S. Utilities.............................................................. 6,614,496 0.8
Office Equipment/Supplies......................................................... 3,018,614 0.4
Oil & Gas Production.............................................................. 248,408 0.0
Oil Refining/Marketing............................................................ 13,578,660 1.6
Oil/Gas Transmission.............................................................. 2,922,148 0.4
Other Consumer Services........................................................... 1,272,322 0.2
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
SUMMARY OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Other Metals/Minerals............................................................. $ 2,271,448 0.3%
Other Pharmaceuticals............................................................. 5,858,941 0.6
Other Specialty Stores............................................................ 4,399,643 0.6
Other Telecommunications.......................................................... 8,089,792 1.0
Other Transportation.............................................................. 452,512 0.1
Package Goods/Cosmetics........................................................... 7,582,421 1.0
Packaged Foods.................................................................... 15,246,093 1.9
Paints/Coatings................................................................... 452,793 0.1
Paper............................................................................. 2,438,708 0.3
Photographic Products............................................................. 2,035,856 0.3
Precious Metals................................................................... 58,399 0.0
Precision Instruments............................................................. 365,955 0.0
Printing/Forms.................................................................... 1,979,151 0.3
Property - Casualty Insurers...................................................... 3,722,279 0.4
Railroads......................................................................... 4,212,953 0.5
Real Estate....................................................................... 20,138,830 2.5
Recreational Products/Toys........................................................ 2,318,631 0.3
Restaurants....................................................................... 1,795,420 0.2
Semiconductors.................................................................... 3,032,117 0.4
Specialty Chemicals............................................................... 5,789,649 0.6
Specialty Foods/Candy............................................................. 2,909,010 0.4
Specialty Steels.................................................................. 560,262 0.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Steel/Iron Ore.................................................................... $ 2,196,462 0.3%
Telecommunications................................................................ 4,808,501 0.6
Telecommunications Equipment...................................................... 43,327,061 5.5
Textiles.......................................................................... 836,614 0.1
Tobacco........................................................................... 2,467,312 0.3
U.S. Government Agency............................................................ 237,974,084 30.1
Utilities......................................................................... 6,198,146 0.8
Water Supply...................................................................... 751,720 0.1
Wholesale Distributors............................................................ 956,656 0.1
------------ -----
$857,958,375 108.5%
------------ -----
------------ -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks..................................................................... $609,589,520 77.1%
Corporate Bonds................................................................... 12,842 0.0
Preferred Stocks.................................................................. 10,320,156 1.3
Short-Term Investments............................................................ 237,974,084 30.1
Warrants.......................................................................... 61,773 0.0
------------ -----
$857,958,375 108.5%
------------ -----
------------ -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $851,476,865).............................................................. $857,958,375
Cash (including $518,461 in foreign currency and $15,505,338 segregated in connection with
open futures contracts)..................................................................... 17,971,558
Receivable for:
Shares of beneficial interest sold........................................................ 4,697,097
Dividends................................................................................. 1,536,651
Foreign withholding taxes reclaimed....................................................... 113,155
Investments sold.......................................................................... 37,613
Deferred offering costs....................................................................... 17,708
Prepaid expenses and other assets............................................................. 149,524
------------
TOTAL ASSETS............................................................................. 882,481,681
------------
LIABILITIES:
Unrealized depreciation on open forward foreign currency contracts............................ 6,100,294
Payable for:
Investments purchased..................................................................... 80,374,195
Variation margin on futures contracts..................................................... 2,203,690
Shares of beneficial interest repurchased................................................. 1,879,712
Investment management fee................................................................. 653,531
Plan of distribution fee.................................................................. 583,188
Accrued expenses and other payables........................................................... 172,949
------------
TOTAL LIABILITIES........................................................................ 91,967,559
------------
NET ASSETS............................................................................... $790,514,122
============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................... $729,897,621
Net unrealized depreciation................................................................... (473,396)
Accumulated net investment loss............................................................... (645,593)
Accumulated undistributed net realized gain................................................... 61,735,490
------------
NET ASSETS............................................................................... $790,514,122
============
CLASS A SHARES:
Net Assets.................................................................................... $ 45,469,989
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 4,053,848
NET ASSET VALUE PER SHARE................................................................ $11.22
============
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)........................................ $11.84
============
CLASS B SHARES:
Net Assets.................................................................................... $610,733,592
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 54,763,384
NET ASSET VALUE PER SHARE................................................................ $11.15
============
CLASS C SHARES:
Net Assets.................................................................................... $ 81,557,595
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 7,312,997
NET ASSET VALUE PER SHARE................................................................ $11.15
============
CLASS D SHARES:
Net Assets.................................................................................... $ 52,752,946
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 4,693,624
NET ASSET VALUE PER SHARE................................................................ $11.24
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME
INCOME
Interest...................................................................................... $ 4,095,229
Dividends (net of $398,710 foreign withholding tax)........................................... 3,528,937
------------
TOTAL INCOME............................................................................. 7,624,166
------------
EXPENSES
Investment management fee..................................................................... 3,577,870
Plan of distribution fee (Class A shares)..................................................... 54,734
Plan of distribution fee (Class B shares)..................................................... 2,833,718
Plan of distribution fee (Class C shares)..................................................... 396,682
Transfer agent fees and expenses.............................................................. 361,953
Custodian fees................................................................................ 133,937
Registration fees............................................................................. 92,209
Offering costs................................................................................ 54,666
Shareholder reports and notices............................................................... 38,513
Professional fees............................................................................. 35,052
Trustees' fees and expenses................................................................... 6,998
Other......................................................................................... 37,280
------------
TOTAL EXPENSES........................................................................... 7,623,612
------------
NET INVESTMENT INCOME.................................................................... 554
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments............................................................................... 51,654,982
Futures contracts......................................................................... 17,273,522
Foreign exchange transactions............................................................. (5,873,727)
------------
NET GAIN................................................................................. 63,054,777
------------
Net change in unrealized appreciation on:
Investments............................................................................... (24,434,462)
Futures contracts......................................................................... (2,348,958)
Translation of forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies....................................................... (5,888,677)
------------
NET DEPRECIATION......................................................................... (32,672,097)
------------
NET GAIN................................................................................. 30,382,680
------------
NET INCREASE.................................................................................. $ 30,383,234
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
--------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)................................................ $ 554 $ (687,252)
Net realized gain (loss).................................................... 63,054,777 (3,486,865)
Net change in unrealized appreciation....................................... (32,672,090) 32,198,701
------------ ------------
NET INCREASE........................................................... 30,383,234 28,024,584
Net increase from transactions in shares of beneficial interest............. 185,219,683 546,786,621
------------ ------------
NET INCREASE........................................................... 215,602,917 574,811,205
NET ASSETS:
Beginning of period......................................................... 574,911,205 100,000
------------ ------------
END OF PERIOD
(INCLUDING ACCUMULATED NET INVESTMENT LOSSES OF $645,593 AND $646,146,
RESPECTIVELY)........................................................... $790,514,122 $574,911,205
============ ============
</TABLE>
---------------------
* Commencement of operations.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter International Fund (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund's investment objective is
long-term capital growth. The Fund seeks to achieve its objective by investing,
under normal circumstances, at least 65% of its total assets in a diversified
portfolio of international common stocks and other equity securities. The Fund
was organized as a Massachusetts Business trust on October 23, 1998 and had no
operations others than those relating to organizational matters and issuance of
2,500 shares of beneficial interest by each class for $25,000 to Morgan Stanley
Dean Witter Advisors Inc. ("Investment Manager") to effect the Fund's initial
capitalization. The Fund commenced operations June 28, 1999.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares, are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
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 a security is traded on more than one exchange, the security is
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 the Investment Manager or Morgan Stanley Dean Witter Investment
Management Inc. (the "Sub-Advisor"), that sale or 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
30
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
supervision of the Trustees (valuation of debt securities for which market
quotations are not readily available may be based upon current market prices of
securities which are comparable in coupon; rating and maturity or an appropriate
matrix utilizing similar factors); 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.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends on foreign securities which are recorded as soon as
the fund is informed after the ex-dividend date. Discounts are accreted over the
life of the respective securities. Interest income is accrued daily.
C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
D. FUTURES CONTRACTS -- A futures contract is an agreement between two parties
to buy and sell financial instruments at a set price on a future date. Upon
entering into such a contract, the Fund is required to pledge to the broker
cash, U.S. Government securities or other liquid portfolio securities equal to
the minimum initial margin requirement of the applicable futures exchange.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract
which is known as variation margin. Such receipts or payments are recorded by
the Fund as unrealized gains or losses. Upon closing of the contract, the Fund
realizes a gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
E. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are
31
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
included in the Statement of Operations as realized and unrealized gain/loss on
foreign exchange transactions. Pursuant to U.S. Federal income tax regulations,
certain foreign exchange gains/losses included in realized and unrealized
gain/loss are included in or are a reduction of ordinary income for federal
income tax purposes. The Fund does not isolate that portion of the results of
operations arising as a result of changes in the foreign exchange rates from the
changes in the market prices of the securities.
F. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized gain/loss on foreign exchange transactions. The Fund
records realized gains or losses on delivery of the currency or at the time the
forward contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.
G. 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.
H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the ex-dividend 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.
I. OFFERING COSTS -- The Investment Manager incurred offering costs on behalf of
the Fund in the amount of approximately $153,000, which was reimbursed for the
full amount thereof. Such expenses were deferred and are being amortized by the
Fund on the straight-line method over a period of approximately one year or less
from the commencement of operations.
32
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
annual rate of 1.00% to the net assets of the Fund determined as of the close of
each business day.
Under a Sub-Advisory Agreement between the Sub-Advisor and the Investment
Manager, the Sub-Advisor provides the Fund with investment advice and portfolio
management relating to the Fund's investments in securities, subject to the
overall supervision of the Investment Manager. As compensation for its services
provided pursuant to the Sub-Advisory Agreement, the Investment Manager pays the
Sub-Advisor compensation equal to 40% of its monthly compensation.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager and
Sub-Advisor. The Fund has adopted a Plan of Distribution (the "Plan") pursuant
to Rule 12b-1 under the Act. The Plan provides that the Fund will pay the
Distributor a fee which is accrued daily and paid monthly at the following
annual rates: (i) Class A -- up to 0.25% of the average daily net assets of
Class A; (ii) Class B -- 1.0% of the average daily net assets of Class B; and
(iii) Class C -- up to 1.0% of the average daily net assets of Class C.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. 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 totaled
$25,685,542 at April 30, 2000.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or
33
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
other selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the six months ended April 30, 2000, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
1.0%, respectively.
The Distributor has informed the Fund that for the six months ended April 30,
2000, it received contingent deferred sales charges from certain redemptions of
the Fund's Class A shares, Class B shares and Class C shares of $3,564,
$918,736, and $70,192, respectively and received $111,488 in front-end sales
charges from sales of the Fund's Class A shares. The respective shareholders pay
such charges which are not an expense of the Fund.
4. 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 April 30, 2000 aggregated
$368,284,010 and $290,004,472, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager,
Sub-Advisor and Distributor, is the Fund's transfer agent.
5. FEDERAL INCOME TAX STATUS
As of October 31, 1999, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies and
open forward foreign currency exchange contracts and capital loss deferrals on
wash sales.
6. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities. The Fund may also purchase and sell interest rate,
currency and index futures contracts ("futures contracts") that are traded on
U.S. and foreign commodity exchanges on such underlying securities as U.S.
Treasury bonds, notes, bills and GNMA Certificates and/or any foreign government
fixed-income security, on various currencies and on such indexes of U.S. and
foreign securities as may exist or come into existence.
Forward contracts and futures contracts involve elements of market risk in
excess of the amounts reflected in the Statement of Assets and Liabilities. The
Fund bears the risk of an unfavorable
34
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED
change in the foreign exchange rates underlying the forward contracts or an
unfavorable change in the value of the underlying securities. Risks may also
arise upon entering into these contracts from the potential inability of the
counterparties to meet the terms of their contracts.
At April 30, 2000, there were outstanding forward contracts used to manage
foreign currency exposure and outstanding index futures.
7. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
--------------------------- -------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A
Sold............................................................. 7,458,117 $ 84,957,803 5,501,684 $ 55,679,553
Redeemed......................................................... (7,046,034) (80,573,364) (1,862,419) (19,164,117)
----------- ------------- ---------- ------------
Net increase - Class A........................................... 412,083 4,384,439 3,639,265 36,515,436
----------- ------------- ---------- ------------
CLASS B
Sold............................................................. 21,313,228 243,015,995 46,196,462 464,151,607
Redeemed......................................................... (10,664,871) (122,399,870) (2,083,935) (21,345,154)
----------- ------------- ---------- ------------
Net increase - Class B........................................... 10,648,357 120,616,125 44,112,527 442,806,153
----------- ------------- ---------- ------------
CLASS C
Sold............................................................. 2,251,914 25,641,700 7,186,009 72,115,535
Redeemed......................................................... (1,558,333) (17,908,329) (569,093) (5,816,388)
----------- ------------- ---------- ------------
Net increase - Class C........................................... 693,581 7,733,371 6,616,916 66,299,147
----------- ------------- ---------- ------------
CLASS D
Sold............................................................. 6,868,186 78,681,494 1,075,888 11,093,524
Redeemed......................................................... (2,300,891) (26,195,746) (952,059) (9,927,939)
----------- ------------- ---------- ------------
Net increase - Class D........................................... 4,567,295 52,485,748 123,829 1,165,585
----------- ------------- ---------- ------------
Net increase in Fund............................................. 16,321,316 $ 185,219,683 54,492,537 $546,786,621
=========== ============= ========== ============
</TABLE>
---------------------
* Commencement of operations.
35
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
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 JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------------------------------------------------------------------------------
<S> <C> <C>
(UNAUDITED)
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 10.57 $ 10.00
------- -------
Income from investment operations:
Net investment income.................................... 0.04 0.01
Net realized and unrealized gain......................... 0.61 0.56
------- -------
Total income from investment operations..................... 0.65 0.57
------- -------
Net asset value, end of period.............................. $ 11.22 $ 10.57
======= =======
TOTAL RETURN+(1)............................................ 6.15% 5.70%
RATIOS TO AVERAGE NET ASSETS(2)(3):
Expenses.................................................... 1.46% 1.81%
Net investment income....................................... 0.67% 0.31%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $45,469 $38,506
Portfolio turnover rate(1).................................. 51% 14%
</TABLE>
---------------------
* Commencement of operations.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------------------------------------------------------------------------------
<S> <C> <C>
(UNAUDITED)
CLASS B SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 10.55 $ 10.00
-------- --------
Income (loss) from investment operations:
Net investment loss...................................... (0.01) (0.02)
Net realized and unrealized gain......................... 0.61 0.57
-------- --------
Total income from investment operations..................... 0.60 0.55
-------- --------
Net asset value, end of period.............................. $ 11.15 $ 10.55
======== ========
TOTAL RETURN+(1)............................................ 5.69 % 5.50 %
RATIOS TO AVERAGE NET ASSETS(2)(3):
Expenses.................................................... 2.21 % 2.56 %
Net investment loss......................................... (0.08)% (0.44)%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $610,734 $465,258
Portfolio turnover rate(1).................................. 51 % 14 %
</TABLE>
---------------------
* Commencement of operations.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
37
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------------------------------------------------------------------------------
<S> <C> <C>
(UNAUDITED)
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 10.55 $ 10.00
------- -------
Income (loss) from investment operations:
Net investment loss...................................... (0.01) (0.02)
Net realized and unrealized gain......................... 0.61 0.57
------- -------
Total income from investment operations..................... 0.60 0.55
------- -------
Net asset value, end of period.............................. $ 11.15 $ 10.55
======= =======
TOTAL RETURN+(1)............................................ 5.69 % 5.50 %
RATIOS TO AVERAGE NET ASSETS(2)(3):
Expenses.................................................... 2.21 % 2.56 %
Net investment loss......................................... (0.08)% (0.44)%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $81,558 $69,811
Portfolio turnover rate(1).................................. 51 % 14 %
</TABLE>
---------------------
* Commencement of operations.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
MORGAN STANLEY DEAN WITTER INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JUNE 28, 1999*
MONTHS ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------------------------------------------------------------------------------
<S> <C> <C>
(UNAUDITED)
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 10.58 $10.00
------- ------
Income from investment operations:
Net investment income.................................... 0.08 0.01
Net realized and unrealized gain......................... 0.58 0.57
------- ------
Total income from investment operations..................... 0.66 0.58
------- ------
Net asset value, end of period.............................. $ 11.24 $10.58
======= ======
TOTAL RETURN+(1)............................................ 6.24% 5.80%
RATIOS TO AVERAGE NET ASSETS(2)(3):
Expenses.................................................... 1.21% 1.56%
Net investment income....................................... 0.92% 0.56%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $52,753 $1,336
Portfolio turnover rate(1).................................. 51% 14%
</TABLE>
---------------------
* Commencement of operations.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
39
