<PAGE> 1
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND Two World Trade Center
LETTER TO THE SHAREHOLDERS June 30, 1999 New York, New York 10048
DEAR SHAREHOLDER:
Over the course of the first half of 1999, the economic outlook changed and
consequently so did the market leadership. The year began much as 1998 ended,
with expectations for modest, below-trend global economic growth accompanied by
a continued deceleration of inflation. Against this backdrop, the same growth
stocks that led in 1998 (financials, retail, Internet and technology)
outperformed in early 1999.
By the second quarter, however, expectations began to change as it became
evident that first-quarter U.S. economic and profit growth had been much
stronger than expected. Also, economies in non-Japan Asia were rebounding much
more quickly and strongly than anticipated. In Europe, evidence began to build
that consumers there were gradually reviving. Given all these developments,
investors began to lift their global growth assumptions. Responding to these
upward revisions in global economic expectations, commodity indexes moved upward
for the first time in several years, pulling interest rates up with them. The
sum total of these events led to a rotation in sector leadership away from more
expensively priced domestic growth stocks to more globally exposed value and
economically sensitive stocks.
PERFORMANCE
On January 28, 1999 the Board of Trustees of Morgan Stanley Dean Witter American
Value Fund approved a proposal to change the Fund's name to Morgan Stanley Dean
Witter American Opportunities Fund. This change was effective on April 26, 1999.
Please note that only the Fund's name has changed; the objective, portfolio
manager and investment strategy remain the same.
For the six-month period ended June 30, 1999, the Fund's Class B shares produced
a total return of 11.96 percent compared to 11.89 percent for the Lipper Growth
Funds Index and 12.38 percent for the Standard & Poor's 500 Composite Stock
Price Index (S&P 500). For the same period, the Fund's Class A, C and D shares
returned 12.27 percent, 11.82 percent
<PAGE> 2
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
LETTER TO THE SHAREHOLDERS June 30, 1999, continued
and 12.37 percent, respectively. The performance of the Fund's four share
classes varies because of differing expenses.
The Fund has been a Lipper leader for a decade. According to Lipper Inc., the
Fund's Class B shares ranked #371 of 1065 growth funds (top 35 percent) for the
twelve months ended June 30, 1999, #246 of 653 funds (top 38 percent) for the
trailing three years, #94 of 399 funds (top 24 percent) for the trailing five
years and #28 of 171 funds (top 16 percent) for the trailing ten years. Lipper
rankings are based on total return and do not take any sales charges into
account. Past performance is no guarantee of future results.
PORTFOLIO STRATEGY
Throughout the first half of 1999, the Fund's performance continued to be driven
by its sector-rotation approach. We look to capitalize on change by
overweighting sectors we believe are best positioned to show above-average
earnings growth relative to the S&P 500. Early in the year the Fund focused on
the same domestically oriented growth industries that it owned in 1998. At that
time the U.S. economy was by far the strongest major economy in the world and
the portfolio was tilted toward industries and companies that would best stand
to benefit from domestic trends. Major sector emphases included beneficiaries of
decelerating inflation and declining interest rates, which stimulated consumer
spending. Sectors emphasized included interest-related industries (e.g., banks,
brokers, miscellaneous financials, life insurance, autos, consumer electronics,
retailing and restaurants), selective technology groups (e.g., high growth,
non-commodity groups like the Internet, communication equipment and select
semiconductor stocks), domestic industries with internal growth drivers (e.g.,
radio, cable companies, broadcasters and satellite companies) and steady growth
industries (e.g., drugs, domestic and foreign wireless, wireline telephone
companies).
In the second quarter, the portfolio was broadened to include industries with
greater global exposure and economic sensitivity, given growing signs of
economic revival abroad and continued strength on the domestic front. Industries
sold or reduced in order to fund purchases in more economically sensitive and
globally exposed groups included banks, autos, drugs, cable, consumer staples
and miscellaneous financials. Cyclical and industrial groups added or expanded
included basic cyclicals, capital goods, energy and energy services,
semiconductors and semiconductor equipment.
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
LETTER TO THE SHAREHOLDERS June 30, 1999, continued
LOOKING AHEAD
We believe that the global economy will rebound to a more-normalized rate of
growth over the next eighteen months. This should occur as economies in emerging
markets and Japan increasingly stabilize and move ahead. Likewise, we believe
that the European bloc will work its way back to pre-contagion growth rates
driven by an improvement in exports and a revival in consumer spending. The Fund
has positioned for this global acceleration with purchases made in the
technology, industrial and basic cyclical sectors. Many component suppliers in
these sectors may also benefit from a Y2K effect during the second half of 1999.
U.S. domestic growth, while likely to slow from its previous torrid growth pace,
should remain solid. Fund positions in media, health care, consumer electronics,
business services and select retail and financial stocks should benefit from
this domestic outlook.
On May 1, 1999, Mitchell M. Merin was named President of the Morgan Stanley Dean
Witter Funds. Mr. Merin is the President and Chief Operating Officer of Asset
Management for Morgan Stanley Dean Witter & Co. and President, Chief Executive
Officer and Director of Morgan Stanley Dean Witter Advisors Inc., the Fund's
investment manager. He also serves as Chairman, Chief Executive Officer and
Director of the Fund's distributor and transfer agent.
We appreciate your ongoing support of Morgan Stanley Dean Witter American
Opportunities Fund and look forward to continuing to serve your investment
needs.
Very truly yours,
/S/ CHARLES A. FIUMEFREDDO /S/ MITCHELL M. MERIN
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FUND PERFORMANCE June 30, 1999
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A*
- ----------------------------------------------
<S> <C> <C>
PERIOD ENDED 6/30/99
- -------------------------
Since Inception (7/28/97) 27.43(1) 23.90(2)
1 Year 23.11(1) 16.65(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B+
- ----------------------------------------------
<S> <C> <C>
PERIOD ENDED 6/30/99
- -------------------------
1 Year 22.44(1) 17.44(2)
5 Years 25.98(1) 25.82(2)
10 Years 19.34(1) 19.34(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C++
- ----------------------------------------------
<S> <C> <C>
PERIOD ENDED 6/30/99
- -------------------------
Since Inception (7/28/97) 26.47(1) 26.47(2)
1 Year 22.17(1) 21.17(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS D#
- ----------------------------------------------
<S> <C> <C>
PERIOD ENDED 6/30/99
- -------------------------
Since Inception (7/28/97) 27.74(1)
1 Year 23.42(1)
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
- ---------------------
<TABLE>
<S> <C>
(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 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.
</TABLE>
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (90.2%)
Accident & Health Insurance (0.0%)
1,500 Torchmark Corp. ........... $ 51,187
--------------
Advertising (0.2%)
195,000 Interpublic Group of
Companies, Inc. .......... 16,891,875
26,700 Outdoor Systems, Inc.*..... 974,550
3,000 Snyder Communications,
Inc.*..................... 98,250
--------------
17,964,675
--------------
Aerospace (0.8%)
900,000 United Technologies
Corp. .................... 64,518,750
--------------
Airlines (0.9%)
2,231,500 Southwest Airlines Co. .... 69,455,437
--------------
Alcoholic Beverages (1.6%)
1,100,000 Anheuser-Busch Companies,
Inc. ..................... 78,031,250
30,000 Coors (Adolph) Co. (Class
B)........................ 1,485,000
140,000 LVMH-Moet Hennessy Louis
Vuitton (France).......... 41,077,491
112,600 LVMH-Moet Hennessy Louis
Vuitton (France)
(Rights)*................. 3,299,149
--------------
123,892,890
--------------
Aluminum (0.9%)
1,155,000 Alcoa Inc. ................ 71,465,625
--------------
Auto Parts: O.E.M. (0.2%)
320,000 Lear Corp.*................ 15,920,000
--------------
Beverages - Non-Alcoholic (0.2%)
339,500 Coca-Cola Enterprises
Inc. ..................... 10,100,125
367,400 Pepsi Bottling Group,
Inc. ..................... 8,473,162
4,000 PepsiCo, Inc. ............. 154,750
--------------
18,728,037
--------------
Biotechnology (1.1%)
860,000 Biogen, Inc.*.............. 55,308,750
25,000 Centocor, Inc.*............ 1,165,625
25,000 COR Therapeutics, Inc.*.... 365,625
89,000 Immunex Corp.*............. 11,336,375
360,000 MedImmune, Inc.*........... 24,480,000
--------------
92,656,375
--------------
Books/Magazines (0.3%)
620,000 Reader's Digest Assoc.,
Inc. (Class A)............ 24,645,000
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Broadcasting (3.0%)
1,805,000 CBS Corp. ................. $ 78,404,687
381,000 Chancellor Media Corp.*.... 20,978,812
917,258 Clear Channel
Communications, Inc.*..... 63,233,473
435,000 Grupo Televisa S.A. (GDR)
(Mexico)*................. 19,493,437
300,000 Hispanic Broadcasting
Corp.*.................... 22,743,750
250,400 Univision Communications,
Inc. (Class A)*........... 16,526,400
539,500 USA Networks, Inc.*........ 21,613,719
--------------
242,994,278
--------------
Building Materials/DIY Chains (0.8%)
967,000 Home Depot, Inc. (The)..... 62,311,062
14,000 Lowe's Companies, Inc. .... 793,625
--------------
63,104,687
--------------
Cable Television (2.9%)
230,000 Adelphia Communications
Corp. (Class A)*.......... 14,820,625
1,210,000 AT&T Corp. - Liberty Media
Group (Class A)*.......... 44,467,500
220,000 Cablevision Systems Corp.
(Class A)*................ 15,400,000
40,000 Century Communications
Corp. (Class A)*.......... 1,840,000
432,000 Comcast Corp. (Class A
Special).................. 16,605,000
997,400 Cox Communications, Inc.
(Class A)*................ 36,716,787
670,000 EchoStar Communications
Corp. (Class A)*.......... 102,803,125
14,000 MediaOne Group, Inc.*...... 1,041,250
--------------
233,694,287
--------------
Casino/Gambling (0.2%)
380,000 Mandalay Resort Group*..... 8,027,500
93,000 MGM Grand, Inc.*........... 4,557,000
--------------
12,584,500
--------------
Catalog/Specialty Distribution (0.0%)
6,000 Amazon.com, Inc.*.......... 750,375
--------------
Cellular Telephone (1.9%)
987,000 Nextel Communications, Inc.
(Class A)*................ 49,535,062
637,000 Sprint Corp. (PCS
Group)*................... 36,388,625
165,000 Vodafone AirTouch PLC (ADR)
(United Kingdom).......... 32,505,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
1,660,000 Vodafone AirTouch PLC
(United Kingdom).......... $ 32,718,600
200,000 Western Wireless Corp.
(Class A)*................ 5,400,000
--------------
156,547,287
--------------
Clothing/Shoe/Accessory Stores (1.1%)
590,500 Gap, Inc. (The)............ 29,746,437
950,250 Intimate Brands, Inc. ..... 45,018,094
368,214 Limited (The), Inc. ....... 16,707,710
--------------
91,472,241
--------------
Computer Communications (1.3%)
1,431,000 Cisco Systems, Inc.*....... 92,210,062
90,100 Juniper Networks, Inc.*.... 13,419,269
--------------
105,629,331
--------------
Computer Hardware (1.1%)
4,000 Dell Computer Corp.*....... 147,750
435,000 International Business
Machines Corp. ........... 56,223,750
475,000 Sun Microsystems, Inc.*.... 32,715,625
--------------
89,087,125
--------------
Computer Software (3.9%)
270,000 i2 Technologies, Inc.*..... 11,610,000
13,500 BackWeb Technologies Ltd.
(Israel)*................. 366,187
1,250,000 Compuware Corp.*........... 39,687,500
4,300 Great Plains Software,
Inc.*..................... 199,681
10,000 Intuit Inc.*............... 901,250
14,000 Legato Systems, Inc.*...... 808,500
1,202,000 Microsoft Corp.*........... 108,330,250
50,000 New Era of Networks,
Inc.*..................... 2,193,750
30,000 Novell, Inc.*.............. 795,000
1,800,000 Oracle Corp.*.............. 66,825,000
630,000 Siebel Systems, Inc.*...... 41,737,500
423,105 Veritas Software Corp.*.... 40,168,531
--------------
313,623,149
--------------
Computer/Video Chains (2.5%)
937,500 Best Buy Co., Inc.*........ 63,281,250
900,000 Circuit City Stores, Inc. -
Circuit City Group........ 83,700,000
2,223 Dixons Group PLC (United
Kingdom).................. 41,537
1,141,000 Tandy Corp. ............... 55,766,375
--------------
202,789,162
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Construction/Agricultural Equipment/Trucks
(0.5%)
20,000 Astec Industries, Inc. .... $ 815,000
300,000 Caterpillar, Inc. ......... 18,000,000
340,000 Navistar International
Corp.*.................... 17,000,000
--------------
35,815,000
--------------
Consumer Electronics/
Appliances (0.7%)
12,000 Maytag Corp. .............. 836,250
553,000 Sony Corp. (Japan)......... 59,543,317
--------------
60,379,567
--------------
Containers/Packaging (0.5%)
560,000 Temple-Inland, Inc. ....... 38,220,000
--------------
Contract Drilling (0.5%)
830,200 ENSCO International
Inc. ..................... 16,552,112
111,300 Noble Drilling Corp.*...... 2,191,219
1,000,000 Rowan Companies, Inc.*..... 18,437,500
43,000 Transocean Offshore,
Inc. ..................... 1,128,750
--------------
38,309,581
--------------
Department Stores (0.7%)
705,200 Federated Department
Stores, Inc.*............. 37,331,525
408,000 Sears, Roebuck & Co. ...... 18,181,500
--------------
55,513,025
--------------
Discount Chains (1.3%)
12,000 Costco Companies, Inc.*.... 960,000
605,000 Dayton Hudson Corp. ....... 39,325,000
7,500 Dollar Tree Stores,
Inc.*..................... 329,531
32,000 Family Dollar Stores,
Inc. ..................... 768,000
6,800 Kmart Corp.*............... 111,775
1,255,000 Wal-Mart Stores, Inc. ..... 60,553,750
--------------
102,048,056
--------------
Diversified Commercial Services (0.1%)
235,000 CheckFree Holdings
Corp.*.................... 6,462,500
11,700 Paychex, Inc. ............. 371,475
--------------
6,833,975
--------------
Diversified Electronic Products (1.3%)
60,000 Gemstar International Group
Ltd. (Virgin Islands)*.... 3,915,000
375,000 Honeywell, Inc. ........... 43,453,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
500,000 Rockwell International
Corp. .................... $ 30,375,000
161,000 Uniphase Corp.*............ 26,726,000
--------------
104,469,125
--------------
Diversified Financial Services (2.0%)
607,000 American Express Co. ...... 78,985,875
840,000 Citigroup Inc. ............ 39,900,000
609,500 Equitable Companies,
Inc. ..................... 40,836,500
6,300 Providian Financial
Corp. .................... 589,050
--------------
160,311,425
--------------
Diversified Manufacturing (2.7%)
690,000 AlliedSignal, Inc. ........ 43,470,000
400,000 Mannesmann AG (Germany).... 59,818,980
435,000 Minnesota Mining &
Manufacturing Co. ........ 37,817,812
800,000 Tyco International Ltd.
(Bermuda)................. 75,800,000
--------------
216,906,792
--------------
Drugstore Chains (0.7%)
656,500 CVS Corp. ................. 33,317,375
805,000 Walgreen Co. .............. 23,646,875
--------------
56,964,250
--------------
E.D.P. Peripherals (0.4%)
100,000 EMC Corp.*................. 5,500,000
357,200 Lexmark International
Group, Inc. (Class A)*.... 23,597,525
47,000 Network Appliance, Inc.*... 2,626,125
--------------
31,723,650
--------------
E.D.P. Services (1.8%)
5,800 Automatic Data Processing,
Inc. ..................... 255,200
1,100,000 Electronic Data Systems
Corp. .................... 62,218,750
1,600,000 First Data Corp. .......... 78,300,000
--------------
140,773,950
--------------
Electric Utilities (0.4%)
620,000 AES Corp. (The)*........... 36,037,500
--------------
Electrical Products (0.0%)
1,300 Alcatel (France)........... 183,395
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Electronic Components
(0.3%)
174,000 Flextronics International
Ltd.*..................... $ 9,613,500
18,000 Rambus Inc.*............... 1,658,250
186,500 Sanmina Corp.*............. 14,150,687
--------------
25,422,437
--------------
Electronic Data Processing (0.2%)
460,000 Unisys Corp.*.............. 17,911,250
--------------
Electronic Production Equipment (2.7%)
1,150,000 Applied Materials, Inc.*... 84,956,250
832,000 ASM Lithography Holding
N.V. (Netherlands)*....... 49,088,000
73,200 Jabil Circuit, Inc.*....... 3,303,150
571,459 Taiwan Semiconductor
Manufacturing Co. Ltd.
(ADR) (Taiwan)............ 19,429,606
842,700 Teradyne, Inc.*............ 60,463,725
--------------
217,240,731
--------------
Environmental Services (0.5%)
705,500 Waste Management, Inc. .... 37,920,625
--------------
Farming/Seeds/Milling (0.0%)
4,000 Delta & Pine Land Co. ..... 126,000
--------------
Finance Companies (0.8%)
8,792 Associates First Capital
Corp. (Class A)........... 389,595
720,000 Capital One Financial
Corp. .................... 40,095,000
6,500 Fannie Mae................. 444,437
8,500 Freddie Mac................ 493,000
799,500 MBNA Corp. ................ 24,484,687
--------------
65,906,719
--------------
Fluid Controls (0.2%)
409,200 Parker-Hannifin Corp. ..... 18,720,900
--------------
Food Chains (0.0%)
51,600 Kroger Co.*................ 1,441,575
16,000 Safeway Inc.*.............. 792,000
--------------
2,233,575
--------------
Food Distributors (0.0%)
40,000 U.S. Foodservice*.......... 1,705,000
--------------
Forest Products (1.2%)
1,485,000 Georgia-Pacific Group...... 70,351,875
360,000 Weyerhaeuser Co. .......... 24,750,000
--------------
95,101,875
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Generic Drugs (0.0%)
40,000 Alpharma Inc. (Class A).... $ 1,422,500
20,000 Watson Pharmaceuticals,
Inc.*..................... 701,250
--------------
2,123,750
--------------
Hospital/Nursing Management (0.2%)
600,000 Columbia/HCA Healthcare
Corp. .................... 13,687,500
20,000 Res-Care, Inc.*............ 452,500
--------------
14,140,000
--------------
Industrial Machinery/
Components (0.6%)
188,400 Illinois Tool Works
Inc. ..................... 15,448,800
500,000 Ingersoll-Rand Co. ........ 32,312,500
--------------
47,761,300
--------------
Insurance Brokers/Services (0.3%)
10,500 AON Corp. ................. 433,125
359,500 Marsh & McLennan Companies,
Inc. ..................... 27,142,250
--------------
27,575,375
--------------
Integrated Oil Companies (1.9%)
690,028 BP Amoco PLC (ADR) (United
Kingdom).................. 74,868,038
500,000 Chevron Corp. ............. 47,593,750
447,700 Exxon Corp. ............... 34,528,863
--------------
156,990,651
--------------
International Banks (0.0%)
9,000 Argentaria, Caja Postal y
Banco Hipotecario de
Espana S.A. (Spain)....... 205,470
112,000 Unicredito Italiano
SpA (Italy)............... 493,104
--------------
698,574
--------------
Internet Services (1.3%)
140,000 America Online, Inc.*...... 15,470,000
8,000 At Home Corp. (Series
A)*....................... 431,500
14,000 Lycos, Inc.*............... 1,286,250
70,000 VeriSign, Inc.*............ 6,037,500
81,000 Vignette Corp.*............ 6,247,125
434,400 Yahoo! Inc.*............... 74,798,250
--------------
104,270,625
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Investment Bankers/Brokers/
Services (0.1%)
6,350 Edwards (A.G.), Inc. ...... $ 204,788
32,000 Goldman Sachs Group,
Inc. ..................... 2,312,000
10,000 Hambrecht & Quist Group*... 371,250
40,000 Merrill Lynch & Co.,
Inc. ..................... 3,197,500
6,500 Paine Webber Group,
Inc. ..................... 303,875
--------------
6,389,413
--------------
Investment Managers (0.0%)
25,000 Amvescap PLC (United
Kingdom).................. 222,526
--------------
Life Insurance (0.3%)
2,010 Aegon N.V. (ARS)
(Netherlands)............. 148,740
5,000 American General Corp. .... 376,875
404,200 Lincoln National Corp. .... 21,144,713
--------------
21,670,328
--------------
Major Banks (1.6%)
4,000 Bank of America Corp. ..... 293,250
5,000 BankBoston Corp. .......... 255,625
893,000 Chase Manhattan Corp.
(The)..................... 77,356,125
10,000 Mellon Bank Corp. ......... 363,750
330,000 Morgan (J.P.) & Co.,
Inc. ..................... 46,365,000
15,000 Wells Fargo & Co. ......... 641,250
--------------
125,275,000
--------------
Major Chemicals (0.2%)
145,000 Dow Chemical Co. .......... 18,396,875
7,000 Du Pont (E.I.) de Nemours &
Co., Inc. ................ 478,188
--------------
18,875,063
--------------
Major Pharmaceuticals (2.9%)
1,024,000 American Home Products
Corp. .................... 58,880,000
1,214,000 Bristol-Myers Squibb
Co. ...................... 85,511,125
600,000 Johnson & Johnson.......... 58,800,000
12,000 Lilly (Eli) & Co. ......... 859,500
4,500 Pfizer, Inc. .............. 493,875
430,100 Pharmacia & Upjohn,
Inc. ..................... 24,435,056
34,400 Schering-Plough Corp. ..... 1,823,200
12,000 Warner-Lambert Co. ........ 832,500
--------------
231,635,256
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Major U.S. Telecommunications (1.6%)
1,000,000 AT&T Corp. ................ $ 55,812,500
5,000 Bell Atlantic Corp. ....... 326,875
500,000 MCI WorldCom, Inc. ........ 43,000,000
630,000 Sprint Corp. (FON Group)... 33,271,875
--------------
132,411,250
--------------
Managed Health Care (1.6%)
500,000 CIGNA Corp. ............... 44,500,000
935,000 United HealthCare Corp. ... 58,554,375
275,000 Wellpoint Health Networks,
Inc.*..................... 23,340,625
--------------
126,395,000
--------------
Media Conglomerates (1.4%)
7,500 Disney (Walt) Co. ......... 231,094
518,500 Fox Entertainment Group,
Inc. (Series A)*.......... 13,967,094
430,000 News Corporation Ltd. (The)
(ADR) (Australia)......... 15,184,375
649,400 Time Warner Inc. .......... 47,730,900
798,000 Viacom, Inc. (Class B)*.... 35,112,000
--------------
112,225,463
--------------
Medical Equipment & Supplies (0.1%)
8,303 Medtronic, Inc. ........... 646,596
242,000 Summit Technology, Inc.*... 5,324,000
--------------
5,970,596
--------------
Medical Specialties (1.7%)
5,000 ALZA Corp.*................ 254,375
315,000 Bausch & Lomb Inc. ........ 24,097,500
10,000 Becton, Dickinson & Co. ... 300,000
15,000 Biomet, Inc. .............. 594,375
950,800 Boston Scientific Corp.*... 41,775,775
361,000 Minimed, Inc.*............. 27,774,438
246,400 St. Jude Medical, Inc.*.... 8,778,000
380,000 VISX, Inc.*................ 30,115,000
--------------
133,689,463
--------------
Mid-Sized Banks (0.0%)
20,000 Fifth Third Bancorp........ 1,331,250
--------------
Military/Gov't/Technical (1.4%)
45,000 General Dynamics Corp. .... 3,082,500
990,300 General Motors Corp. (Class
H)*....................... 55,704,375
742,000 Raytheon Co. (Class B)..... 52,218,250
--------------
111,005,125
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Motor Vehicles (0.0%)
11,000 Ford Motor Co. ............ $ 620,813
--------------
Movies/Entertainment (0.9%)
1,446,300 Seagram Co. Ltd.
(Canada).................. 72,857,363
--------------
Multi-Line Insurance (1.3%)
659,000 American International
Group, Inc. .............. 77,144,188
400,000 Hartford Financial Services
Group, Inc. (The)......... 23,325,000
8,900 Nationwide Financial
Services, Inc. (Class
A)........................ 402,725
--------------
100,871,913
--------------
Multi-Sector Companies (1.0%)
721,000 General Electric Co. ...... 81,473,000
--------------
Newspapers (0.4%)
404,800 Tribune Co. ............... 35,268,200
--------------
Office Equipment/Supplies (0.1%)
161,700 Avery Dennison Corp. ...... 9,762,639
--------------
Oil & Gas Production (0.6%)
1,200,000 Apache Corp. .............. 46,800,000
--------------
Oil/Gas Transmission (0.8%)
810,000 Enron Corp. ............... 66,217,500
--------------
Oilfield Services/Equipment (1.7%)
800,000 Baker Hughes Inc. ......... 26,800,000
400,000 BJ Services Co.*........... 11,775,000
1,715,100 Halliburton Co. ........... 77,608,275
126,400 Smith International,
Inc.*..................... 5,490,500
515,000 Weatherford International,
Inc.*..................... 18,861,875
--------------
140,535,650
--------------
Other Consumer Services (0.0%)
14,000 Advantage Learning Systems,
Inc.*..................... 304,500
17,000 E-LOAN, Inc.*.............. 654,500
--------------
959,000
--------------
Other Metals/Minerals
(0.0%)
1,000 BRO-X Minerals Ltd.
(Canada)*................. 478
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Other Pharmaceuticals (0.1%)
72,000 Elan Corp. PLC (ADR)
(Ireland)*................ $ 1,998,000
14,000 Forest Laboratories,
Inc.*..................... 647,500
30,000 Sepracor, Inc.*............ 2,430,000
--------------
5,075,500
--------------
Other Specialty Stores (0.5%)
6,000 Barnes & Noble, Inc.*...... 164,250
1,336,000 Kingfisher PLC (United
Kingdom).................. 15,378,215
280,000 Tiffany & Co. ............. 27,020,000
--------------
42,562,465
--------------
Other Telecommunications (0.4%)
71,000 McLeodUSA, Inc.
(Class A)*................ 3,896,125
33,000 NEXTLINK Communications,
Inc. (Class A)*........... 2,452,313
280,000 NTL Inc.*.................. 24,132,500
--------------
30,480,938
--------------
Package Goods/Cosmetics (2.2%)
1,515,000 Avon Products, Inc. ....... 84,082,500
2,500 Clorox Co. ................ 267,031
595,000 Colgate-Palmolive Co. ..... 58,756,250
711,000 Estee Lauder Companies,
Inc. (The) (Class A)...... 35,638,875
1,700 Procter & Gamble Co. ...... 151,725
--------------
178,896,381
--------------
Paper (0.8%)
882,978 International Paper Co. ... 44,590,389
370,000 Willamette Industries,
Inc. ..................... 17,043,125
--------------
61,633,514
--------------
Property-Casualty Insurers (0.3%)
300,000 Chubb Corp. ............... 20,850,000
200,000 St. Paul Companies,
Inc. ..................... 6,362,500
--------------
27,212,500
--------------
Railroads (0.2%)
295,700 Canadian National Railway
Co. (Canada).............. 19,811,900
--------------
Recreational Products/Toys (0.0%)
13,000 Electronic Arts Inc.*...... 702,000
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
Restaurants (0.7%)
549,000 Brinker International,
Inc.*..................... $ 14,925,938
720,000 Granada Group PLC (United
Kingdom)*................. 13,362,434
767,250 Outback Steakhouse,
Inc.*..................... 30,018,656
12,000 Starbucks Corp.*........... 448,500
--------------
58,755,528
--------------
Semiconductors (4.7%)
145,000 Broadcom Corp. (Class
A)*....................... 20,952,500
166,000 Conexant Systems, Inc.*.... 9,628,000
506,000 Linear Technology Corp. ... 34,028,500
708,900 LSI Logic Corp.*........... 32,698,013
500,000 Maxim Integrated Products,
Inc.*..................... 33,250,000
76,500 Micron Technology, Inc.*... 3,083,906
570,000 PMC - Sierra, Inc.*........ 33,594,375
140,000 STMicroelectronics NV
(Netherlands)............. 9,346,974
790,000 STMicroelectronics NV
(Netherlands)............. 54,806,250
460,000 Texas Instruments Inc. .... 66,700,000
186,500 TriQuint Semiconductor,
Inc. ..................... 10,595,531
481,500 Vitesse Semiconductor
Corp.*.................... 32,681,813
690,000 Xilinx, Inc.*.............. 39,502,500
--------------
380,868,362
--------------
Shoe Manufacturing (1.0%)
1,275,000 Nike, Inc. (Class B)....... 80,723,438
--------------
Specialty Chemicals (0.6%)
500,000 Air Products & Chemicals,
Inc. ..................... 20,125,000
590,000 Praxair, Inc. ............. 28,873,125
--------------
48,998,125
--------------
Telecommunications (1.5%)
7,067 Nippon Telegraph &
Telephone Corp. (Japan)... 82,215,099
490,000 Telefonos de Mexico S.A.
(Series L) (ADR)
(Mexico).................. 39,598,125
--------------
121,813,224
--------------
Telecommunications Equipment (8.6%)
10,000 Alcatel (ADR) (France)..... 283,750
88,000 American Power Conversion
Corp.*.................... 1,765,500
50,000 AVT Corp. ................. 1,887,500
730,500 Comverse Technology,
Inc.*..................... 55,061,438
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
1,031,031 Ericsson (L.M.)
Telefonaktiebolaqet (ADR)
(Sweden).................. $ 33,895,144
872,000 General Instrument
Corp.*.................... 37,060,000
30,000 Gilat Satellite Networks
Ltd. (Israel)*............ 1,575,000
1,048,825 Lucent Technologies
Inc. ..................... 70,730,136
950,000 Motorola, Inc. ............ 90,012,500
1,126,200 Nokia Corp. (ADR)
(Finland)................. 103,117,688
780,400 Nortel Networks Corp.
(Canada).................. 67,748,475
660,000 QUALCOMM Inc.*............. 94,710,000
1,201,000 RF Micro Devices, Inc.*.... 89,624,625
746,800 Scientific-Atlanta,
Inc. ..................... 26,884,800
251,000 Tellabs, Inc.*............. 16,958,188
--------------
691,314,744
--------------
Wireless Communications (0.2%)
187,000 VoiceStream Wireless
Corp.*.................... 5,317,813
242,000 WinStar Communications,
Inc.*..................... 11,797,500
--------------
17,115,313
--------------
TOTAL COMMON STOCKS
(Identified Cost
$6,567,197,033)............ 7,280,339,297
--------------
PRINCIPAL
AMOUNT IN
THOUSANDS
----------
SHORT-TERM INVESTMENTS (9.5%)
U.S. GOVERNMENT AGENCIES (a) (9.3%)
$ 300,000 Federal Home Loan Mortgage
Corp.
4.55% due 07/01/99........ 300,000,000
180,000 Student Loan Market Assoc.
4.55% due 07/01/99........ 180,000,000
270,580 Student Loan Market Assoc.
4.60% due 07/01/99........ 270,580,000
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(Amortized Cost
$750,580,000)............. 750,580,000
--------------
REPURCHASE AGREEMENT (0.2%)
13,585 The Bank of New York
4.625% due 07/01/99 (dated
06/30/99; proceeds
$13,586,813) (b)
(Identified Cost
$13,585,067).............. 13,585,067
--------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
- -------------------------------------------------------------------
<S> <C> <C>
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $764,165,067)..................... $764,165,067
--------------
TOTAL INVESTMENTS
(Identified Cost $7,331,362,100) (c)...... 99.7% 8,044,504,364
OTHER ASSETS IN EXCESS OF
CASH AND LIABILITIES....................... 0.3 21,510,076
----- --------------
NET ASSETS................................. 100.0% $8,066,014,440
===== ==============
</TABLE>
- ---------------------
ADR American Depository Receipt.
GDR Global Depository Receipt.
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) Collateralized by $14,130,546 U.S. Treasury Note 5.375% due 06/30/03
valued at $13,856,769.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $815,024,219 and the
aggregate gross unrealized depreciation is $101,881,955, resulting in net
unrealized appreciation of $713,142,264.
FUTURES CONTRACTS OPEN AT JUNE 30, 1999:
<TABLE>
<CAPTION>
DESCRIPTION UNDERLYING
NUMBER OF DELIVERY YEAR FACE AMOUNT UNREALIZED
CONTRACTS AND MONTH AT VALUE DEPRECIATION
- -------------------------------------------------------
<S> <C> <C> <C>
1,656 S&P 500 INDEX $572,023,800 $(26,995,098)
SEPTEMBER/1999
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $7,331,362,100)........................... $8,044,504,364
Cash........................................................ 2,683,596
Receivable for:
Investments sold........................................ 272,150,717
Shares of beneficial interest sold...................... 19,566,385
Dividends............................................... 3,864,658
Foreign withholding taxes reclaimed..................... 513,430
Prepaid expenses and other assets........................... 473,627
--------------
TOTAL ASSETS............................................ 8,343,756,777
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 238,166,970
Shares of beneficial interest repurchased............... 15,508,726
Variation margin on futures contracts................... 13,766,005
Plan of distribution fee................................ 5,036,095
Investment management fee............................... 3,236,348
Dividends and distributions to shareholders............. 1,401,231
Accrued expenses and other payables......................... 626,962
--------------
TOTAL LIABILITIES....................................... 277,742,337
--------------
NET ASSETS.............................................. $8,066,014,440
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. $6,261,250,821
Net unrealized appreciation................................. 686,127,871
Accumulated net investment loss............................. (2,999,808)
Accumulated undistributed net realized gain................. 1,121,635,556
--------------
NET ASSETS.............................................. $8,066,014,440
==============
CLASS A SHARES:
Net Assets.................................................. $178,227,587
Shares Outstanding (unlimited authorized, $.01 par value)... 4,929,037
NET ASSET VALUE PER SHARE............................... $36.16
==============
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net asset value)........ $38.16
==============
CLASS B SHARES:
Net Assets.................................................. $7,551,414,492
Shares Outstanding (unlimited authorized, $.01 par value)... 211,483,240
NET ASSET VALUE PER SHARE............................... $35.71
==============
CLASS C SHARES:
Net Assets.................................................. $140,179,220
Shares Outstanding (unlimited authorized, $.01 par value)... 3,944,913
NET ASSET VALUE PER SHARE............................... $35.53
==============
CLASS D SHARES:
Net Assets.................................................. $196,193,141
Shares Outstanding (unlimited authorized, $.01 par value)... 5,396,732
NET ASSET VALUE PER SHARE............................... $36.35
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1999 (unaudited)
NET INVESTMENT LOSS:
INCOME
Dividends (net of $529,036 foreign withholding tax)......... $ 23,772,367
Interest.................................................... 19,591,231
-------------
TOTAL INCOME............................................ 43,363,598
-------------
EXPENSES
Plan of distribution fee (Class A shares)................... 143,102
Plan of distribution fee (Class B shares)................... 24,491,702
Plan of distribution fee (Class C shares)................... 512,282
Investment management fee................................... 16,718,873
Transfer agent fees and expenses............................ 3,448,902
Registration fees........................................... 525,559
Custodian fees.............................................. 214,590
Shareholder reports and notices............................. 176,973
Professional fees........................................... 38,951
Trustees' fees and expenses................................. 9,189
Other....................................................... 34,289
-------------
TOTAL EXPENSES.......................................... 46,314,412
-------------
NET INVESTMENT LOSS..................................... (2,950,814)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments............................................. 1,224,492,333
Futures contracts....................................... (6,495,418)
Foreign exchange transactions........................... (2,799)
-------------
NET GAIN................................................ 1,217,994,116
-------------
Net change in unrealized appreciation/depreciation on:
Investments............................................. (408,652,969)
Futures contracts....................................... (26,995,098)
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................. (42,599)
-------------
NET DEPRECIATION........................................ (435,690,666)
-------------
NET GAIN................................................ 782,303,450
-------------
NET INCREASE................................................ $ 779,352,636
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, 1998
- ---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss................................ $ (2,950,814) $ (4,067,589)
Net realized gain.................................. 1,217,994,116 821,025,139
Net change in unrealized
appreciation/depreciation......................... (435,690,666) 554,978,703
-------------- --------------
NET INCREASE................................... 779,352,636 1,371,936,253
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED
GAIN:
Class A shares..................................... (5,194,917) (13,723,199)
Class B shares..................................... (216,781,565) (795,828,381)
Class C shares..................................... (3,999,252) (7,103,483)
Class D shares..................................... (5,602,896) (17,168,974)
-------------- --------------
TOTAL DISTRIBUTIONS............................ (231,578,630) (833,824,037)
-------------- --------------
Net increase from transactions in shares of
beneficial interest............................... 1,454,982,445 1,369,254,273
-------------- --------------
NET INCREASE................................... 2,002,756,451 1,907,366,489
NET ASSETS:
Beginning of period................................ 6,063,257,989 4,155,891,500
-------------- --------------
END OF PERIOD
(Including accumulated net investment losses of
$2,999,808 and $44,936, respectively).......... $8,066,014,440 $6,063,257,989
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE> 15
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter American Opportunities Fund (the "Fund"), formerly
Dean Witter American Value 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 capital growth consistent
with an effort to reduce volatility. The Fund seeks to achieve its objective by
investing in a diversified portfolio of securities consisting principally of
common stocks. The Fund was incorporated in Maryland in 1979, commenced
operations on March 27, 1980 and was reorganized as a Massachusetts business
trust on April 30, 1987. On July 28, 1997, the Fund converted to a multiple
class share structure.
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 Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager"), 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 supervision of the
Trustees (valuation of debt securities for which market quotations are not
readily available may be based upon current market
15
<PAGE> 16
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
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.
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 CONTRACT -- 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 requirements 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 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
16
<PAGE> 17
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
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 contract 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 record 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.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with the Investment Manager, the
Fund pays a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.625% to the portion of daily net assets not exceeding $250
million; 0.50% to the portion of daily net assets exceeding $250 million but not
exceeding $2.5 billion; 0.475% to the portion of daily net assets exceeding $2.5
billion but not exceeding $3.5 billion and 0.45% of the portion of daily net
assets exceeding $3.5 billion but not exceeding $4.5 billion; and 0.425% to the
portion of daily net assets in excess of $4.5 billion.
17
<PAGE> 18
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
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. 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
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) 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 A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for (1)
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of, Morgan Stanley
Dean Witter Financial Advisors and others who engage in or support distribution
of the shares or who service shareholder accounts, including overhead and
telephone expenses; (2) printing and distribution of prospectuses and reports
used in connection with the offering of these shares to other than current
shareholders; and (3) preparation, printing and distribution of sales literature
and advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and Distributor
and other selected broker-dealers for their opportunity costs in advancing such
amounts, which compensation would be in the form of a carrying charge on any
unreimbursed expenses.
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
18
<PAGE> 19
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
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, including carrying charges, totaled $116,883,041 at
June 30, 1999.
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 other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the six months ended June 30, 1999, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.18% and
1.0%, respectively.
The Distributor has informed the Fund that for six months ended June 30, 1999,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $6,036, $3,430,892
and 61,909, respectively and received $624,715 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 June 30, 1999, aggregated
$14,775,875,639 and $14,356,162,946, respectively. Included in the
aforementioned are purchases and sales of U.S. Government securities of
$328,798,688 and $327,377,156, respectively.
For the six months ended June 30, 1999, the Fund incurred $516,620 in brokerage
commissions with DWR for portfolio transactions executed on behalf of the Fund.
At June 30, 1999, the Fund's payable for investments purchased and receivables
for investments sold included unsettled trades with DWR of $22,380,581 and
$3,978,519, respectively.
19
<PAGE> 20
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
For the six months ended June 30, 1999, the Fund incurred brokerage commissions
of $2,811,893 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager and Distributor, for portfolio transactions executed on behalf of the
Fund. At June 30, 1999, the Fund's payable for investments purchased and
receivables for investments sold included unsettled trades with Morgan Stanley &
Co., Inc. of $5,664,730 and the $26,434,835, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At June 30, 1999, the Fund had
transfer agent fees and expenses payable of approximately $112,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended June 30, 1999
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,976. At June 30, 1999, the Fund had an accrued pension liability of
$44,711 which is included in accrued expenses in the Statement of Assets and
Liabilities.
5. FEDERAL INCOME TAX STATUS
As of December 31, 1998, the Fund had temporary book/tax differences primarily
attributable to 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.
To hedge against adverse interest rate, foreign currency and market risks, the
Fund may purchase and sell interest rate, currency and index futures ("futures
contracts").
Forward contracts and future 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 change
20
<PAGE> 21
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
in the foreign exchange rates underlying the forward contracts. Risks may also
arise upon entering into these contracts from the potential inability of the
counterparties to meet the terms of their contracts.
At June 30, 1999, the Fund had outstanding futures contracts.
7. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, 1998
---------------------------- ----------------------------
(unaudited)
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold..................................................... 1,998,714 $ 71,159,953 3,040,045 $ 98,844,494
Reinvestment of distributions............................ 143,798 5,093,340 442,608 13,534,616
Shares issued in connection with the acquisition of
Morgan Stanley Dean Witter Capital Appreciation Fund.... 21,302 761,171 -- --
Redeemed................................................. (759,649) (27,215,903) (493,155) (16,123,421)
----------- -------------- ----------- --------------
Net increase - Class A................................... 1,404,165 49,798,561 2,989,498 96,255,689
----------- -------------- ----------- --------------
CLASS B SHARES
Sold..................................................... 41,181,265 1,454,862,541 41,693,951 1,350,536,686
Reinvestment of distributions............................ 5,845,538 204,476,925 24,515,681 750,904,568
Shares issued in connection with the acquisition of
Morgan Stanley Dean Witter Capital Appreciation Fund.... 6,039,569 213,444,830 -- --
Redeemed................................................. (16,638,489) (588,150,830) (29,339,840) (949,807,859)
----------- -------------- ----------- --------------
Net increase - Class B................................... 36,427,883 1,284,633,466 36,869,792 1,151,633,395
----------- -------------- ----------- --------------
CLASS C SHARES
Sold..................................................... 2,330,143 81,962,295 1,645,951 53,383,964
Reinvestment of distributions............................ 110,558 3,848,535 225,932 6,841,485
Shares issued in connection with the acquisition of
Morgan Stanley Dean Witter Capital Appreciation Fund.... 35,974 1,266,865 -- --
Redeemed................................................. (390,745) (13,774,519) (426,767) (13,856,699)
----------- -------------- ----------- --------------
Net increase - Class C................................... 2,085,930 73,303,176 1,445,116 46,368,750
----------- -------------- ----------- --------------
CLASS D SHARES
Sold..................................................... 2,001,894 70,973,944 1,603,145 52,338,697
Reinvestment of distributions............................ 149,836 5,335,662 512,115 15,767,494
Shares issued in connection with the acquisition of
Morgan Stanley Dean Witter Capital Appreciation Fund.... 3,051 109,510 -- --
Shares issued in connection with the acquisition of
Dean Witter Retirement Series - American Value.......... -- -- 1,423,395 44,485,158
Redeemed................................................. (811,943) (29,171,874) (1,164,596) (37,594,910)
----------- -------------- ----------- --------------
Net increase - Class D................................... 1,342,838 47,247,242 2,374,059 74,996,439
----------- -------------- ----------- --------------
Net increase in Fund..................................... 41,260,816 $1,454,982,445 43,678,465 $1,369,254,273
=========== ============== =========== ==============
</TABLE>
21
<PAGE> 22
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) continued
8. ACQUISITION OF DEAN WITTER RETIREMENT SERIES -- AMERICAN VALUE SERIES
On September 11, 1998, the Fund acquired all the net assets of Dean Witter
Retirement Series -- American Value Series ("Retirement American") pursuant to a
plan of reorganization approved by the shareholders of Retirement American on
August 19, 1998. The acquisition was accomplished by a tax-free exchange of
1,423,395 Class D shares of the Fund at a net asset value of $31.24 per share
for 3,765,186 shares of Retirement American. The net assets of the Fund and
Retirement American immediately before the acquisition were $4,748,265,432, and
$44,485,158, respectively, including unrealized appreciation of $3,189,940 for
Retirement American. Immediately after the acquisition, the combined assets of
the Fund amounted to $4,792,750,590.
9. ACQUISITION OF MORGAN STANLEY DEAN WITTER CAPITAL APPRECIATION FUND
On March 12, 1999, the Fund acquired all the net assets of Morgan Stanley Dean
Witter Capital Appreciation ("Capital Appreciation") pursuant to a plan of
reorganization approved by the shareholders of Capital Appreciation on October
29, 1998. The acquisition was accomplished by a tax-free exchange of 21,302
Class A shares of the Fund at a net asset value of $35.74 per share for 60,567
Class A shares of Capital Appreciation; 6,039,569 Class B shares of the Fund at
a net asset value of $35.35 per share for 17,217,642 Class B shares of Capital
Appreciation; 35,974 Class C shares of the Fund at a net asset value of $35.22
per share for 102,177 Class C shares of Capital Appreciation; and 3,051 Class D
shares of the Fund at a net asset value of $35.90 per share for 8,685 Class D
shares of Capital Appreciation. The net assets of the Fund and Capital
Appreciation immediately before the acquisition were $7,027,067,112 and
$215,582,376, respectively, including unrealized appreciation of $42,624,303 for
Capital Appreciation. Immediately after the acquisition, the combined assets of
the Fund amounted to $7,242,649,488.
22
<PAGE> 23
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED DECEMBER 31,
MONTHS ENDED ----------------------------------------------------------------
JUNE 30, 1999 1998++ 1997*++ 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period...... $32.85 $29.51 $27.01 $27.16 $21.21 $23.10
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment loss...................... (0.02) (0.03) (0.10) (0.08) 0.01 --
Net realized and unrealized gain
(loss)................................. 3.94 8.66 8.34 2.86 8.87 (1.57)
------ ------ ------ ------ ------ ------
Total income (loss) from investment
operations............................... 3.92 8.63 8.24 2.78 8.88 (1.57)
------ ------ ------ ------ ------ ------
Less dividends and distributions from:
Net investment income.................... -- -- -- (0.01) -- --
Net realized gain........................ (1.06) (5.29) (5.74) (2.92) (2.93) (0.32)
------ ------ ------ ------ ------ ------
Total dividends and distributions......... (1.06) (5.29) (5.74) (2.93) (2.93) (0.32)
------ ------ ------ ------ ------ ------
Net asset value, end of period............ $35.71 $32.85 $29.51 $27.01 $27.16 $21.21
====== ====== ====== ====== ====== ======
TOTAL RETURN+............................. 11.96%(1) 31.07% 31.55% 10.53% 42.20% (6.75)%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................. 1.32%(2)(3) 1.39%(3) 1.46% 1.53% 1.61% 1.71%
Net investment income (loss).............. (0.11)%(2)(3) (0.10)%(3) (0.34)% (0.33)% 0.06% 0.01%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions.... $7,551 $5,750 $4,078 $3,099 $2,389 $1,490
Portfolio turnover rate................... 226% 321% 275% 279% 256% 295%
</TABLE>
- ---------------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were purchased
prior to April 30, 1984 (and with respect to such shares, certain shares
acquired through reinvestment of dividends and capital gains distributions
(collectively the "Old Shares")), have been designated Class B shares. The
Old Shares have been designated Class D shares.
++ The per share amount 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
23
<PAGE> 24
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED THROUGH
JUNE 30, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $33.16 $29.59 $31.87
------ ------ ------
Income from investment operations:
Net investment income...................................... 0.08 0.15 0.05
Net realized and unrealized gain........................... 3.98 8.71 2.32
------ ------ ------
Total income from investment operations..................... 4.06 8.86 2.37
------ ------ ------
Less distributions from net realized gain................... (1.06) (5.29) (4.65)
------ ------ ------
Net asset value, end of period.............................. $36.16 $33.16 $29.59
====== ====== ======
TOTAL RETURN+............................................... 12.27%(1) 31.78% 7.70%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.77%(2)(3) 0.86%(3) 0.92%(2)
Net investment income....................................... 0.44%(2)(3) 0.43%(3) 0.38%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $178,228 $116,894 $15,844
Portfolio turnover rate..................................... 226% 321% 275%
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $32.74 $29.49 $31.87
------ ------ ------
Income (loss) from investment operations:
Net investment loss........................................ (0.06) (0.10) (0.05)
Net realized and unrealized gain........................... 3.91 8.64 2.32
------ ------ ------
Total income from investment operations..................... 3.85 8.54 2.27
------ ------ ------
Less distributions from net realized gain................... (1.06) (5.29) (4.65)
------ ------ ------
Net asset value, end of period.............................. $35.53 $32.74 $29.49
====== ====== ======
TOTAL RETURN+............................................... 11.82%(1) 30.78% 7.39%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.59%(2)(3) 1.61%(3) 1.66%(2)
Net investment loss......................................... (0.38)%(2)(3) (0.32)%(3) (0.36)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $140,179 $60,861 $12,204
Portfolio turnover rate..................................... 226% 321% 275%
</TABLE>
- ---------------------
* The date shares were first issued.
++ 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
24
<PAGE> 25
MORGAN STANLEY DEAN WITTER AMERICAN OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED THROUGH
JUNE 30, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $33.31 $29.63 $31.87
------ ------ ------
Income from investment operations:
Net investment income...................................... 0.11 0.24 0.07
Net realized and unrealized gain........................... 3.99 8.73 2.34
------ ------ ------
Total income from investment operations..................... 4.10 8.97 2.41
------ ------ ------
Less distributions from net realized gain................... (1.06) (5.29) (4.65)
------ ------ ------
Net asset value, end of period.............................. $36.35 $33.31 $29.63
====== ====== ======
TOTAL RETURN+............................................... 12.37%(1) 32.12% 7.83%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.59%(2)(3) 0.61%(3) 0.64%(2)
Net investment income....................................... 0.62%(2)(3) 0.68%(3) 0.50%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $196,193 $135,022 $49,772
Portfolio turnover rate..................................... 226% 321% 275%
</TABLE>
- ---------------------
* The date shares were first issued. Shareholders who held shares of the Fund
prior to July 28, 1997 (the date the Fund converted to a multiple class
share structure) should refer to the Financial Highlights of Class B to
obtain the historical per share data and ratio information of their shares.
++ 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
25
<PAGE> 26
(This Page Intentionally Left Blank)
<PAGE> 27
(This Page Intentionally Left Blank)
<PAGE> 28
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
Anita H. Kolleeny
Vice President
Michelle Kaufman
Assistant Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus. Read the
prospectus carefully before investing.
MORGAN STANLEY
DEAN WITTER
AMERICAN
OPPORTUNITIES
FUND
Semiannual Report
June 30, 1999
