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Filed Pursuant to Rule 497(e)
Registration File No.: 2-66269
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SUPPLEMENT TO THE STATEMENTS OF ADDITIONAL INFORMATION OF
MORGAN STANLEY DEAN WITTER AMERICAN VALUE FUND
Dated May 1, 1998, as revised August 21, 1998
MORGAN STANLEY DEAN WITTER BALANCED GROWTH FUND Dated April 23, 1998
MORGAN STANLEY DEAN WITTER BALANCED INCOME FUND Dated April 23, 1998
MORGAN STANLEY DEAN WITTER CALIFORNIA TAX-FREE INCOME FUND Dated April 6, 1998
MORGAN STANLEY DEAN WITTER CAPITAL APPRECIATION FUND Dated January 29, 1998
MORGAN STANLEY DEAN WITTER CAPITAL GROWTH SECURITIES Dated December 29, 1997
MORGAN STANLEY DEAN WITTER COMPETITIVE EDGE FUND, "Best Ideas Portfolio"
Dated July 30, 1998
MORGAN STANLEY DEAN WITTER CONVERTIBLE SECURITIES TRUST Dated November 24, 1998
MORGAN STANLEY DEAN WITTER DEVELOPING GROWTH SECURITIES TRUST
Dated November 25, 1998
MORGAN STANLEY DEAN WITTER DIVERSIFIED INCOME TRUST
Dated February 6, 1998, as revised July 30, 1998
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC. Dated June 24, 1998
MORGAN STANLEY DEAN WITTER EQUITY FUND Dated June 2, 1998
MORGAN STANLEY DEAN WITTER EUROPEAN GROWTH FUND INC. Dated December 1, 1998
MORGAN STANLEY DEAN WITTER FEDERAL SECURITIES TRUST Dated December 29, 1997
MORGAN STANLEY DEAN WITTER FINANCIAL SERVICES TRUST Dated July 30, 1998
MORGAN STANLEY DEAN WITTER FUND OF FUNDS Dated May 5, 1998
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
Dated June 23, 1998
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND Dated June 26, 1998
MORGAN STANLEY DEAN WITTER GROWTH FUND Dated July 29, 1998
MORGAN STANLEY DEAN WITTER HAWAII MUNICIPAL TRUST Dated January 30, 1998
MORGAN STANLEY DEAN WITTER HEALTH SCIENCES TRUST Dated September 25, 1998
MORGAN STANLEY DEAN WITTER HIGH YIELD SECURITIES INC. Dated October 29, 1998
MORGAN STANLEY DEAN WITTER INCOME BUILDER FUND Dated November 25, 1998
MORGAN STANLEY DEAN WITTER INFORMATION FUND Dated July 29, 1998
MORGAN STANLEY DEAN WITTER INTERMEDIATE INCOME SECURITIES
Dated October 30, 1998
MORGAN STANLEY DEAN WITTER INTERNATIONAL SMALLCAP FUND Dated July 30, 1998
MORGAN STANLEY DEAN WITTER JAPAN FUND Dated October 1, 1998
MORGAN STANLEY DEAN WITTER MARKET LEADER TRUST Dated October 28, 1998
MORGAN STANLEY DEAN WITTER MID-CAP DIVIDEND GROWTH SECURITIES
Dated March 23, 1998
MORGAN STANLEY DEAN WITTER MID-CAP GROWTH FUND Dated July 29, 1998
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
Dated March 23, 1998
MORGAN STANLEY DEAN WITTER NATURAL RESOURCE DEVELOPMENT SECURITIES INC.
Dated April 27, 1998
MORGAN STANLEY DEAN WITTER NEW YORK TAX-FREE INCOME FUND Dated April 2, 1998
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC. Dated November 1, 1998
MORGAN STANLEY DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
Dated December 30, 1997
MORGAN STANLEY DEAN WITTER S&P 500 INDEX FUND Dated October 30, 1998
MORGAN STANLEY DEAN WITTER S&P 500 SELECT FUND Dated July 30, 1998
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MORGAN STANLEY DEAN WITTER SPECIAL VALUE FUND Dated September 30, 1998
MORGAN STANLEY DEAN WITTER STRATEGIST FUND Dated September 30, 1998
MORGAN STANLEY DEAN WITTER TAX-EXEMPT SECURITIES TRUST Dated April 17, 1998
MORGAN STANLEY DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
Dated April 17, 1998, as revised August 14, 1998
MORGAN STANLEY DEAN WITTER UTILITIES FUND Dated April 27, 1998,
as revised August 19, 1998
MORGAN STANLEY DEAN WITTER VALUE-ADDED MARKET SERIES Dated August 27, 1998
MORGAN STANLEY DEAN WITTER VALUE FUND Dated September 25, 1998
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST Dated February 6, 1998
The Directors/Trustees of each Morgan Stanley Dean Witter Fund named above
have approved a change to the provisions of the "Letter of Intent" whereby
investors may purchase shares of Morgan Stanley Dean Witter Hawaii Municipal
Trust and Morgan Stanley Dean Witter Multi-State Municipal Series Trust and
Class A shares of each of the other Funds (which Funds/Classes are offered with
a front-end sales charge) over a thirteen-month period with reduced sales
charges applicable to the purchases, such change to take effect on January 1,
1999.
Until now, investors could enter into a Letter of Intent only with respect
to one Morgan Stanley Dean Witter Fund at a time. Effective January 1, 1999,
investors may enter into a single Letter of Intent with respect to multiple
Morgan Stanley Dean Witter Funds and obtain the reduced sales charges with
respect to all Funds that are the subject of the Letter of Intent. Therefore,
effective January 1, 1999, the disclosure in the section of the Statements of
Additional Information of Morgan Stanley Dean Witter Hawaii Municipal Trust and
Morgan Stanley Dean Witter Multi-State Municipal Series Trust entitled
"PURCHASE OF FUND SHARES -- Reduced Sales Charges -- Letter of Intent" and the
disclosure in the section of each of the Statements of Additional Information
of the other Funds entitled "PURCHASE OF FUND SHARES -- Initial Sales Charge
Alternative -- Class A Shares -- Letter of Intent" are hereby modified to
reflect the expansion of the Letter of Intent to encompass purchases of
multiple Morgan Stanley Dean Witter Funds under a single Letter of Intent.
Also effective January 1, 1999, the Directors/Trustees of each Morgan
Stanley Dean Witter Fund named above that is offered with multiple classes of
shares and that does not invest primarily in tax-exempt obligations (that is,
all except Morgan Stanley Dean Witter California Tax-Free Income Fund, Morgan
Stanley Dean Witter Hawaii Municipal Trust, Morgan Stanley Dean Witter
Multi-State Municipal Series Trust, Morgan Stanley Dean Witter New York
Tax-Free Income Fund and Morgan Stanley Dean Witter Tax-Exempt Securities
Trust) have amended the disclosure in the section of the above Statements of
Additional Information entitled "PURCHASE OF FUND SHARES -- Contingent Deferred
Sales Charge Alternative -- Class B Shares" to reflect that no Contingent
Deferred Sales Charge ("CDSC") will be imposed on redemptions of shares held by
employer-sponsored employee benefit plans, whether or not qualified under the
Internal Revenue Code, for which Morgan Stanley Dean Witter Trust FSB serves as
Trustee or Dean Witter Reynolds Inc.'s Retirement Plan Services serves as
recordkeeper pursuant to a written Recordkeeping Services Agreement (referred
to herein as "MSDW Eligible Plans"), and to modify the remaining disclosure
within that section to eliminate references to the applicability or waiver of
the CDSC in connection with redemptions by MSDW Eligible Plans. The
Directors/Trustees have also amended the section of these Statements of
Additional Information entitled "THE DISTRIBUTOR -- Plan of Distribution" to
provide that, with respect to Class A shares purchased by MSDW Eligible Plans,
Morgan Stanley Dean Witter Advisors Inc. compensates Dean Witter Reynolds
Inc.'s Financial Advisors by paying them, from its own funds, a gross sales
credit of 1.0% of the amount sold, and that, with respect to Class B shares
purchased by MSDW Eligible Plans, Dean Witter Reynolds Inc. compensates its
Financial Advisors by paying them, from its own funds, a gross sales credit of
3.0% of the amount sold.
December 31, 1998
