<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
Interest rates in the United States hit historic lows in mid-October 1993,
with the 30-year U.S. Treasury bond trading at a yield of 5.75 percent. However,
economic data, including a revised fourth quarter 1993 gross domestic product of
6.3 percent, declining unemployment, fears of rising Consumer and Producer Price
Indexes, and higher prices on gold futures, raised concerns regarding potential
inflationary pressure. At the same time, consumer spending increased as mortgage
refinancings generated more disposable income. This scenario induced the Federal
Reserve Board to tighten monetary policy by raising the federal-funds rate --
the interest rate banks charge each other for overnight loans -- from 3.00
percent to 4.25 percent in a series of moves beginning in early February 1994.
In May, the discount rate -- the rate the Federal Reserve charges member banks
for loans -- was also increased, by 50 basis points, to 3.50 percent. These
actions represented the first time in several years short-term interest rates
were raised. Although these rate hikes were presented as a series of
"preemptive" strikes in a war against potential inflationary pressure, the
markets interpreted the moves as the beginning of a trend toward higher interest
rates and reacted immediately, with both stock and bond prices tumbling.
From an overall total return standpoint the U.S. equity markets were
volatile, as evidenced by the six-month performance of the Standard & Poor's 500
(-3.39 percent), the NASDAQ Composite (-9.12 percent) and the Hambrecht & Quist
Index of small stocks (-20.45 percent). Similarly, the bond market has had its
difficulties in the recent higher interest rate environment. In response to
rising rates, the yield curve between 2 and 30 years has flattened by
approximately 47 basis points (0.47 percent). As measured by the 30-year U.S.
Treasury bond, the bond market is expected to have a central trading range of
Starting with the emerging markets of Southeast Asia, then spreading to
Latin America and finally to Europe and the United States, a rolling correction
through the world markets seems to have been initiated by a rise in short-term
U.S. interest rates. In 1995, a synchronized global economic expansion is
expected to include both the major and minor world economies.
In the meantime, the mood on Wall Street continues to shift as reports of
potential inflationary pressure and concerns regarding the weak U.S. dollar
persist. It is anticipated that economic activity will continue to abate for the
balance of the year as higher interest rates take effect. While the equity and
fixed-income markets appear to have calmed somewhat, conventional wisdom
suggests caution for the short-term as stocks and bonds struggle to find a base.
MONEY MARKET PORTFOLIO
As of June 30, 1994, the Money Market Portfolio had assets in excess of $214
million and an average maturity of 48 days. On June 30, 1994, the Portfolio's
annualized yield was 3.70 percent.
While money market yields were best characterized by stability during the
second half of 1993, a significant departure began in February 1994, as the
Federal Reserve Board began a series of steps to lift the target level for
federal-funds trading (overnight loans among commercial banks) from 3.00 percent
in early February to 4.25 percent by the end of June. With these moves, the
central bank is trying to stay ahead of potential inflationary pressure, as the
pace of economic activity improves and there is less unused capacity in the
economy.
On June 30, 1994, approximately 82 percent of the Portfolio consisted of
high-quality commercial paper, with 11 percent invested in federal agencies, 3
percent invested in short-term notes of major, financially strong commercial
banks and the remaining 3 percent invested in bankers' acceptances issued by
such institutions.
<PAGE>
More than 87 percent of the Money Market Portfolio's net assets mature in
less than three months. Therefore, the Portfolio is well positioned to take
advantage of any further upward interest rate moves and has a high degree of
liquidity.
Most economic and monetary indicators currently reflect a pace of activity
that is higher than previously anticipated. We believe the Federal Reserve Board
may take further steps to raise short-term interest rates in an attempt to quell
any remaining inflationary pressure. Consequently, we have slightly reduced the
Portfolio's average life and will closely monitor the pace of economic activity
to determine whether further portfolio shortening is warranted. While the
economy's immediate growth trends at this stage of the economic cycle may be
somewhat insensitive to the level of short-term interest rates, eventually the
influence. The Portfolio continues to serve as a useful investment for
liquidity, preservation of capital and a yield that is reflective of prevailing
money market conditions.
QUALITY INCOME PLUS PORTFOLIO
The Quality Income Plus Portfolio outperformed the benchmark 10-year U.S.
Treasury note by approximately one percent. The higher interest rates
precipitated by the Federal Reserve Board's tightening moves created an
environment under which the Portfolio produced a total return of -6.83 percent
for the six-month period ended June 30, 1994.
The Portfolio's net assets at the end of the period under review totaled
$466 million, and were allocated as follows: 48 percent in corporate bonds, 31
percent in mortgage-backed securities, 11 percent in U.S. government
instruments, 6 percent in "Yankee" instruments (U.S. dollar-denominated bonds
issued by sovereign entities) and 8 percent in cash equivalents. This strategy,
an average credit rating of AA (as measured by Standard & Poor's Corp.) and a
14.7 year weighted average maturity leaves the Portfolio well positioned to
benefit from the current low-inflation environment.
Throughout the six-month period ended June 30, 1994, the Portfolio's focus
has been on relative value. The shift in assets that occurred during the first
quarter from 26 percent mortgage-backed securities to 31.5 percent, capitalized
upon the relatively inexpensive yield advantage these AAA-rated instruments
offered versus alternative investment vehicles.
As the close of the second quarter approached, modest shifts into U.S.
government and agency instruments were initiated in order to participate in the
outperformance of selective corporate issues. Additionally, to increase income
flow most lower-coupon mortgages were shifted into issues with coupons ranging
between 7.5 and 8.5 percent. This strategy is expected to continue to be the
Portfolio's principal focus in the coming months.
HIGH YIELD PORTFOLIO
The first half of 1994 was very difficult for the fixed-income markets, and
the high-yield sector was not immune to the turmoil. Rising interest rates and
uncertainty over Federal Reserve Board policy have taken their toll on the
markets. Compared to the other fixed-income sectors, the high-yield market has
not been quite as volatile, aided by its large yield advantage and an
improvement in corporate credit quality, which is a result of a stronger
economy. For the first half of the year, the First Boston High Yield Index
returned -2.49 percent, while the average high-yield annuity fund returned -2.66
percent. Considering the difficult environment, the Portfolio performed
relatively well, posting a total return of 0.74 percent for the same period.
economic growth along with a still relatively subdued inflation rate. With the
significantly higher yield levels available in today's high-yield market we see
many potentially attractive investment opportunities, contingent upon interest
rates stabilizing. In light of this outlook, the Portfolio enters the second
half of 1994 positioned for a potential rebound in the market, with a continued
emphasis on mid B-rated issues (as measured by Moody's Investors Service, Inc.),
which should benefit from the improving economy.
<PAGE>
UTILITIES PORTFOLIO
The Portfolio's -11.13 percent total return over the first six months of
1994 illustrates the extended pressure from higher interest rates and the
general fundamental uncertainties of the utilities sector, with primary concerns
focused on the electric utility sector. The electric utility sector's volatility
is attributable to pending legislation aimed at monitoring competition within
the sector. Many observers believe the worst-case scenario has been discounted
in the market and that final rulings and directives on electric utility
competition will be less onerous and more accommodating to shareholder interest.
Sharing these views, along with a more favorable view toward interest rates, we
remain optimistic for both the value and long-term investor.
In its continuing response to this environment, the Portfolio has further
de-emphasized electric utilities in favor of telecommunications and natural gas
investments. On June 30, 1994, the overall portfolio asset allocation was 85
percent equity, 13 percent fixed-income and 2 percent cash. Within the equity
component, 40 percent was committed to electric utilities, 30 percent to
telecommunications and 15 percent to natural gas. Foreign securities, primarily
telecommunications, accounted for nine percent of net assets.
DIVIDEND GROWTH PORTFOLIO
For the six-month period ended June 30, 1994, the Dividend Growth
Portfolio's total return was -5.73 percent, versus -3.39 percent for the S&P
500. While the climate for common stocks in general has been unfavorable thus
far in 1994, the Portfolio's underperformance of the broad market index is
largely attributable to the sharp rise in interest rates, which negatively
impacted both the Portfolio's fixed-income and interest-rate sensitive common
stock holdings. The Portfolio's net assets exceeded $545 million on June 30,
1994, an increase of more than $63 million over the past six months.
Three new common stock positions were added to the portfolio during the
period under review: Eastman Chemical (a spinoff from Eastman Kodak), Phelps
Dodge and May Department Stores. These issues were purchased because they would
be more sensitive to any further economic upswing and are less dependent on the
Industries and Woolworth Corp. As of June 30, the Portfolio consisted of 47
equity issues, representing 30 different industries, and 6 U.S. Treasury note
and bond issues.
During the six-month period, the securities markets experienced unusual
price volatility. However, we believe that the long-term outlooks for the
economy and the securities markets in general are favorable. We also are
strongly convinced that over the longer term the common stocks of high-quality,
dividend-paying, large-capitalization companies will perform relatively well.
CAPITAL GROWTH PORTFOLIO
For the six-month period under review the Capital Growth Portfolio
registered a total return of -4.82 percent, versus -3.39 percent for the
Standard & Poor's 500. This relative underperformance is attributable to the
fact that growth stocks, a focus of the portfolio, generally underperformed the
broader market. According to Lipper Analytical Services, Inc., a leading monitor
of the mutual fund industry, the average growth fund registered a total return
of -5.95 percent for the six-month period ended June 30, 1994. A move in 1993 to
expand its universe in an attempt to increase diversification positioned the
Portfolio to better withstand the market decline in the first half of 1994. On
June 30, 1994, the Portfolio's net assets exceeded $45 million.
At the end of the period under review, the Portfolio owned 43 equity issues,
representing 30 different industries. New additions to the Portfolio during the
period include Coca-Cola, Schering-Plough and Federal National Mortgage. Philip
Morris and Tyson Foods were eliminated.
During the six-month period, the securities markets experienced unusual
price volatility. However, we believe that the long-term outlooks for the
economy and the securities markets in general are favorable. We also believe
that the common stocks of established growth companies, such as those in which
the Portfolio invests, will perform relatively well over the longer term.
Consequently, we are confident, patient and relatively fully invested.
<PAGE>
EUROPEAN GROWTH PORTFOLIO
The European equity markets have been in a transitional phase thus far in
1994, with investor expectations shifting from an interest rate focus to
expectations of sustained earnings recovery to concerns over too rapid economic
growth and inflation. In the background has been a severe correction in the
European government bond market, initially triggered by the deterioration of the
U.S. bond market, but which eventually assumed specific European dimensions,
such as concerns in Sweden and Italy over budget deficits and in the UK over the
mismanagement of interest-rate policy. Not surprisingly, European equities were
unable to make much headway in this environment. While the Morgan Stanley
the first half of the year, the European Growth Portfolio registered a modest
positive return of 0.9 percent. We believe the European equity markets will
recover over the balance of 1994, based on our forecast for a sharp earnings
recovery and an extended period of advancing earnings up to a peak in 1997
(possibly a year earlier in the case of Scandinavia and the UK). Further
strengthening this forecast, most data during the second quarter pointed to
stronger economies. In addition, while 1995 should be a year of synchronized
worldwide growth, we do not foresee a significant threat of higher inflation in
Europe (although interest rates will certainly be rising). Finally, the strength
of the yen relative to the deutschemark will be beneficial for export volumes.
The Portfolio's key country weightings are as follows: UK, 33.4 percent;
Switzerland, 7.8 percent; Germany, 8.1 percent; Sweden, 6.9 percent;
Netherlands, 8.3 percent; and France, 7.7 percent. In June, the Portfolio's
currency hedge was eliminated as the U.S. dollar remained weak. We currently
forecast a U.S. dollar/deutschemark trading range of 1.52 to 1.65 over the next
3 to 6 months. As a result, the Portfolio will remain unhedged for the
foreseeable future. Given the transitional state of the European marketplace,
the Portfolio is tilted toward stocks that are sensitive to economic growth in
Europe. The Portfolio continues to maintain a large representation of small-and
mid-cap stocks.
EQUITY PORTFOLIO
The Equity Portfolio's net assets grew from approximately $182 million on
December 31, 1993 to more than $208 million on June 30, 1994. Distributions
during the six-month period included $0.034 per share in dividends, $1.16 per
share in short-term capital gains and $0.44 in long-term capital gains. The
Portfolio seeks to identify attractive industry groups based on earnings
momentum and appropriate valuation. Once industries have been targeted for
investment, individual issues ranging from small to large are selected; the
result is a portfolio tilted toward mid-sized companies.
Following a strong 1993, growth stocks fell out of favor as an accelerating
economy drove factory operating rates higher, resulting in a resurgence of
inflationary fears, inducing the Federal Reserve Board to raise interest rates
for the first time in several years. Against this backdrop, during the first
half of 1994 the Portfolio declined 9.6 percent, versus a decline of 3.4 percent
for the S&P 500 and 9.1 percent for the NASDAQ Composite, an index of mid-sized
companies. Despite disappointing results over the past six months, the
Portfolio's long-term track record remains quite attractive, with three-and
five-year average annual total returns of 13.27 percent and 11.95 percent,
In response to the changing market dynamics, the Portfolio increased its
exposure to both defensive and late-cycle industries. This strategy allows the
Portfolio to focus on those defensive and late-cycle groups that typically
outperform when the Federal Reserve Board adopts a tighter monetary policy.
MANAGED ASSETS PORTFOLIO
The first six months of 1994 produced turbulent times for virtually all the
financial markets. For the six-month period, the Standard & Poor's 500 Index
produced a total return of -3.39 percent, while 30-year government bonds
declined 11.73 percent. Fortunately, the Managed Assets Portfolio was
defensively postured throughout the period and finished with a positive total
return of 1.06 percent.
As the year began, the United States was showing signs of strong economic
growth, the stock market was near its all time high and interest rates on both
short-and long-term bonds were at or near historical lows. The Portfolio began
the year with 50 percent of its net assets invested in stocks, a modest 10
percent in bonds and a relatively high 40 percent in money-market instruments.
This posture was designed to provide participation in the financial markets, but
also to suggest caution, as in our opinion the low yields from stocks and bonds
left the markets vulnerable.
<PAGE>
As stated in the introduction to this letter, a combination of stronger
economic growth, rising commodity prices and a weak U.S. dollar produced sharply
higher interest rates early in the year. The Portfolio responded by becoming
even more defensive. At that time, equities were reduced to 20 percent of net
assets, bonds to 5 percent and money-markets were increased to 75 percent. We
expect to maintain this structure until interest rates show signs of peaking or
until equity prices become significantly more attractive.
At the end of June, the Portfolio held 55 common stocks, including
economically sensitive issues such as Deere & Co., International Paper and
Monsanto Co., as well as consumer-oriented issues like Bristol-Myers Squibb,
ConAgra Inc. and Kimberly-Clark. The Portfolio's fixed-income portion consisted
of 12 issues, with an average maturity of 25.3 years, an average coupon of 7.66
percent and an average quality rating of AA+, as measured by Standard & Poor's
Corp.
GLOBAL DIVIDEND GROWTH PORTFOLIO
The Global Dividend Growth Portfolio commenced operations on February 23,
1994, with total net assets of $3 million. By the end of June, net assets under
management had grown to $70.7 million.
During the Portfolio's short life, assets have been committed to 43 common
and preferred stock issues in the following 12 countries: Australia, Canada,
France, Germany, Hong Kong, Italy, Japan, Malaysia, The Netherlands,
Portfolio was fully invested.
From inception through June 30, 1994, the Portfolio recorded a total return
of 0.31 percent, outperforming the -0.96 percent return recorded by the Morgan
Stanley Capital International World Index. We believe this relative
outperformance is attributable to the Portfolio's proprietary screening process,
as well as the U.S. dollar's weakness relative to several of the world's other
major currencies.
We believe the outlooks for the global economy and the securities markets in
most of the world's major countries are favorable over the long term. Looking
ahead, it is our opinion that the stocks of established international companies,
such as those in which the Portfolio invests, will perform relatively well in
the months ahead.
PACIFIC GROWTH PORTFOLIO
The Pacific Growth Portfolio commenced operations on February 23, 1994,
during a period when the Pacific Basin economies have continued to enjoy buoyant
conditions. Indeed, real gross domestic product growth in the region has been
forecast to average 6.5 percent in 1994.
Most Far Eastern stock markets registered gains in the second quarter of
1994, following a weak first three months. In this environment, Pacific Growth
Portfolio's total return from inception through June 30, 1994 was -6.20 percent.
For the second quarter, however, the Portfolio registered a positive total
return of 4.41 percent. Particularly strong performances came from the region's
smaller markets, where the Portfolio remains overweighted.
Weightings in the markets of Northeast Asia continued to be increased during
the second quarter as cyclical recovery in the region gathers momentum.
Meanwhile, exposure to Malaysia and Hong Kong remained low on June 30, 1994. The
Portfolio's Japanese exposure is also low in absolute terms, reflecting the
superior growth potential of the Tiger economies. However, over the first half
of the year, investments in Japan were increased, keeping the Portfolio
overweighted there. Particular emphasis has been placed on the common stock of
fast-growing small-and mid-sized companies.
We appreciate your support of Dean Witter Variable Investment Series and
look forward to continuing to serve your financial objectives.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT (IN AND ON DATE OF
- ----------- ----------------------- ------------- ---------------
<C> <S> <C> <C>
SHORT-TERM BANK NOTE (3.3%)
BANKS - COMMERCIAL (3.3%)
$ 7,000 Bank of New York
09/12/94 (Amortized
Cost $7,000,000)..... 4.43% $ 7,000,000
---------------
BANKERS' ACCEPTANCES (A) (2.9%)
BANKS - COMMERCIAL (2.9%)
1,000 CoreStates Bank, N.A.
07/25/94............... 3.24 997,873
5,312 Mellon Bank N.A.
07/05/94 to
12/02/94............. 4.14 to 4.80 5,250,208
---------------
TOTAL BANKERS' ACCEPTANCES (AMORTIZED
COST $6,248,081).................... 6,248,081
---------------
COMMERCIAL PAPER (A) (82.3%)
AUTOMOTIVE FINANCE (4.4%)
9,590 Ford Motor Credit
Company
07/08/94 to
09/15/94............. 4.26 to 4.67 9,539,564
---------------
BANK HOLDING COMPANIES (23.2%)
10,300 Bankers Trust N.Y.
Corp.
08/15/94 to 10/03/94... 3.68 to 4.78 10,210,929
3,870 Chemical Banking Corp.
08/24/94............... 4.43 3,844,458
9,700 NationsBank Corp.
07/01/94 to
08/10/94............. 4.07 to 4.61 9,672,056
3,000 Norwest Corporation
08/26/94............. 4.52 2,979,140
6,000 PNC Funding Corp.
07/08/94 to
07/19/94............. 4.35 to 4.40 5,990,925
7,500 Republic New York Corp.
11/01/94............. 4.78 7,379,819
9,800 U.S. Bancorp.
08/16/94 to
08/18/94............. 4.37 to 4.38 9,744,509
---------------
49,821,836
---------------
BANKS - COMMERCIAL (2.7%)
5,700 National Westminster
BanCorp Inc.
07/28/94............. 4.29 5,681,746
---------------
BROKERAGE (5.9%)
10,100 Goldman Sachs Group
L.P.
07/07/94 to
08/22/94............. 3.92 to 4.44 10,054,481
2,500 Morgan Stanley Group
Inc.
07/05/94............. 4.27 2,498,822
---------------
12,553,303
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT (IN AND ON DATE OF
THOUSANDS) MATURITY DATE PURCHASE VALUE
- ----------- ----------------------- ------------- ---------------
<C> <S> <C> <C>
CANADIAN GOVERNMENT (2.9%)
$ 1,600 Canadian Wheat Board
07/20/94............... 3.25% $ 1,597,298
4,650 Province of British
Columbia
09/01/94............. 4.45 4,614,763
---------------
6,212,061
---------------
FINANCE - CORPORATE (4.3%)
9,300 Ciesco L.P.
07/06/94 to
07/22/94............. 4.29 to 4.33 9,280,803
---------------
FINANCE - DIVERSIFIED (18.8%)
2,000 Avco Financial
Services, Inc.
07/15/94............. 4.37 1,996,624
6,500 CIT Group Holdings Inc.
08/08/94 to 08/30/94... 3.68 to 4.57 6,462,075
5,530 Commercial Credit Co.
07/18/94 to 09/06/94... 4.31 to 4.47 5,500,804
7,000 General Electric
Capital Corp.
07/12/94 to
08/25/94............. 3.89 to 4.50 6,969,276
6,830 Heller Financial Inc.
07/15/94 to
08/01/94............. 4.26 to 4.42 6,809,249
6,500 Household Finance Corp.
07/13/94 to
07/26/94............. 4.01 to 4.14 6,486,065
6,010 ITT Financial Corp.
07/11/94 to
07/29/94............. 4.27 to 4.37 5,994,530
---------------
40,218,623
---------------
FINANCE - EQUIPMENT (3.2%)
6,800 Deere (John) Cap. Corp.
07/27/94 to 08/23/94... 4.39 to 4.50 6,769,061
---------------
FINANCE - UTILITIES (2.8%)
6,000 National Rural
Utilities Cooperative
Finance Corp.
08/19/94............. 4.38 5,964,475
---------------
INSURANCE (4.2%)
9,000 AIG Funding Inc.
07/12/94............. 4.29 8,988,258
---------------
OFFICE - EQUIPMENT (5.6%)
3,000 Hewlett-Packard Co.
09/01/94............. 4.15 2,978,920
07/14/94 to
07/20/94............. 4.27 8,983,354
---------------
11,962,274
---------------
TELEPHONE (4.3%)
9,345 AT&T Corp.
08/17/94 to
09/29/94............. 4.50 to 4.65 9,265,415
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST
$176,257,419)....................... 176,257,419
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT (IN AND ON DATE OF
THOUSANDS) MATURITY DATE PURCHASE VALUE
- ----------- ----------------------- ------------- ---------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES (A) (10.9%)
$ 3,610 Federal Farm Credit
Bank
07/18/94 to
08/04/94............. 3.37 to 3.43% $ 3,601,962
3,535 Federal Home Loan Banks
08/04/94 to
09/20/94............. 3.45 to 4.38 3,510,808
1,000 Federal Home Loan
Mortgage Corp.
11/23/94............. 3.62 985,903
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT (IN AND ON DATE OF
THOUSANDS) MATURITY DATE PURCHASE VALUE
- ----------- ----------------------- ------------- ---------------
<C> <S> <C> <C>
$ 15,445 Federal National
Mortgage Association
07/06/94 to
12/16/94............. 3.34 to 4.76% $ 15,260,025
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $23,358,698)........ 23,358,698
-------------
TOTAL INVESTMENTS (AMORTIZED COST
$212,864,198) (B)............... 99.4% 212,864,198
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.6 1,336,489
---------- -------------
NET ASSETS........................ 100.0% $ 214,200,687
---------- -------------
---------- -------------
<FN>
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE RATES SHOWN HAVE BEEN
ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) COST IS THE SAME FOR FEDERAL INCOME TAX PURPOSES.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (47.6%)
AUTOMOTIVE (0.9%)
$ 3,000 Ford Motor Co.... 9.50% 9/15/11 $ 3,339,900
1,000 Ford Motor Co.... 8.875 1/15/22 1,051,260
---------------
4,391,160
---------------
BANK HOLDING COMPANIES (11.9%)
1,000 Banc One Corp.... 8.74 9/15/03 1,055,630
2,000 Banc One,
Milwaukee,
NA............. 6.625 4/15/03 1,846,280
1,000 BankAmerica
Corp........... 9.625 2/13/01 1,092,920
1,000 BankAmerica
Corp........... 7.75 7/15/02 987,890
1,000 BankAmerica
Corp........... 7.875 12/ 1/02 993,710
2,000 Boatmen's
Bancshares,
Inc............ 9.25 11/ 1/01 2,162,260
2,000 Boatmen's
Bancshares,
Inc............ 6.75 3/15/03 1,853,960
5,000 Citicorp......... 7.75 6/15/06 4,882,850
1,000 Comerica, Inc.... 7.25 10/15/02 966,100
3,000 Comerica, Inc.... 7.125 12/ 1/13 2,669,730
1,000 CoreStates
Financial
Corp........... 9.625 2/15/01 1,096,740
6,000 CoreStates
Financial
Corp........... 5.875 10/15/03 5,205,240
4,000 Fleet Mortgage
Group, Inc..... 6.50 9/15/99 3,826,560
2,000 Golden West
Financial
Corp........... 7.00 1/15/00 1,944,540
2,000 Huntington
National
Bank........... 7.625 1/15/03 1,956,460
3,000 Marshall & Ilsley
Corp........... 6.375 7/15/03 2,712,000
2,000 Mellon Bank, NA.. 6.75 6/ 1/03 1,851,760
5,000 Nationsbank
3,145 PNC Funding
Corp........... 9.875 3/ 1/01 3,483,717
1,000 Republic NY
Corp........... 7.875 12/12/01 1,009,780
1,000 Society National
Bank........... 7.85 11/ 1/02 999,970
5,000 State Street
Boston Corp.... 5.95 9/15/03 4,406,100
2,000 Wachovia Corp.... 7.00 12/15/99 1,976,460
2,000 Wachovia Corp.... 6.375 4/15/03 1,832,780
---------------
55,342,937
---------------
BROADCAST MEDIA (0.2%)
1,000 Paramount
Communications,
Corp........... 8.25 8/ 1/22 806,520
---------------
COMPUTER EQUIPMENT (0.6%)
4,000 Digital Equipment
Corp........... 7.75 4/ 1/23 2,821,280
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
ETHICAL DRUGS & DISTRIBUTORS (0.4%)
$ 910 Marion Merrell
Corp........... 9.11% 8/ 1/05 $ 977,319
1,000 McKesson Corp.... 8.625 2/ 1/98 1,037,260
---------------
2,014,579
---------------
FINANCE & BROKERAGE (7.9%)
2,000 American Express
Co............. 8.625 5/15/22 2,007,140
1,000 Associates Corp.
North
America........ 6.75 10/15/99 975,170
3,500 Household
Financial
Corp........... 7.75 6/ 1/99 3,542,070
2,000 Household
Financial
Corp........... 8.95 9/15/99 2,130,800
3,500 Household
Financial
Corp........... 8.45 12/10/02 3,583,300
1,000 Morgan Stanley
Group, Inc..... 9.25 3/ 1/98 1,061,530
5,000 Morgan Stanley
Group, Inc..... 7.25 10/15/23 4,243,650
2,000 Norwest
Financial,
Inc............ 7.00 1/15/03 1,912,260
5,000 Norwest
Financial,
Inc............ 6.65 10/15/23 4,092,350
7,000 PaineWebber
3,000 Source One
Mortgage
Services....... 9.00 6/ 1/12 3,077,130
1,000 The Bear Stearns
Companies,
Inc............ 9.125 4/15/98 1,057,890
3,000 Travelers,
Inc............ 7.75 6/15/99 3,033,810
---------------
36,974,540
---------------
FINANCIAL & DATA SERVICING (0.8%)
3,000 Equifax, Inc..... 6.50 6/15/03 2,757,240
1,000 General Electric
Capital Corp... 8.125 5/15/12 1,014,490
---------------
3,771,730
---------------
FOOD, BEVERAGE & TOBACCO (0.4%)
2,000 Phillip Morris
Companies,
Inc............ 7.25 1/15/03 1,866,520
---------------
FOOD SERVICES (0.9%)
2,000 Archer-Daniels-
Midland Co..... 0.00 5/ 1/02 1,109,080
2,000 Grand
Metropolitan
Investment
Corp........... 8.00 9/15/22 1,943,020
1,000 McDonald's
Corp........... 8.875 4/ 1/11 1,083,570
---------------
4,135,670
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
HEALTH CARE - DIVERSIFIED (0.9%)
$ 1,000 Columbia
Healthcare
Corp........... 7.50% 12/15/23 $ 875,080
2,000 Kaiser Foundation
Health Plan,
Inc............ 9.00 11/ 1/01 2,144,500
1,000 Kaiser Foundation
Health Plan,
Inc............ 9.55 7/15/05 1,123,100
---------------
4,142,680
---------------
INDUSTRIALS (6.3%)
1,000 BP North America,
Inc............ 7.875 5/15/02 1,013,670
2,000 Burlington
Resources,
Inc............ 7.15 5/ 1/99 1,971,300
1,000 Burlington
Resources,
Inc............ 8.50 10/ 1/01 1,039,790
1,000 Caterpillar,
Inc............ 9.375 7/15/01 1,090,430
3,000 Caterpillar,
Inc............ 9.375 8/15/11 3,301,740
3,000 Caterpillar,
Inc............ 8.00 2/15/23 2,890,710
1,000 Corning, Inc..... 8.875 8/15/21 1,058,570
1,000 Dow Capital BV... 8.70 5/15/22 1,025,330
2,000 Kimberly Clark
Corp........... 7.875 2/ 1/23 1,913,880
1,000 Knight Ridder,
Inc............ 8.50 9/ 1/01 1,034,500
2,000 Martin Marietta
Corp........... 7.375 4/15/13 1,832,180
1,000 Maytag Corp...... 9.75 5/15/02 1,098,050
1,000 Motorola, Inc.... 7.60 1/ 1/07 982,210
1,000 Pepsico, Inc..... 6.25 9/ 1/99 955,480
3,500 Westvaco Corp.... 7.75 2/15/23 3,308,305
2,000 Weyerhaeuser
Co............. 7.50 3/ 1/13 1,868,980
2,000 Weyerhaeuser
Co............. 7.25 7/ 1/13 1,822,300
---------------
29,210,685
---------------
OIL INTEGRATED - DOMESTIC (0.4%)
779 Mobil Oil Corp... 9.17 2/29/00 827,525
1,000 Texaco Capital,
Inc............ 9.75 3/15/20 1,162,360
---------------
1,989,885
---------------
REAL ESTATE INVESTMENT TRUST (1.0%)
5,000 Kimco Realty
Corp........... 6.50 10/ 1/03 4,387,100
---------------
RETAIL - DEPARTMENT STORES (3.0%)
1,000 Dayton Hudson
Corp........... 9.25 8/15/11 1,073,440
1,000 Dayton Hudson
Corp........... 9.00 10/ 1/21 1,053,830
1,000 Dayton Hudson
Corp........... 8.50 12/ 1/22 987,320
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
$ 2,000 Dillard
Department
Stores, Inc.... 7.85% 10/ 1/12 $ 1,957,660
1,000 Penny, J.C.,
Inc............ 5.375 11/15/98 938,450
1,000 Penny, J.C.,
Inc............ 9.75 6/15/21 1,107,250
1,000 Penny, J.C.,
Inc............ 8.25 8/15/22 990,120
3,000 Walmart Stores,
Inc............ 7.49 6/21/07 2,946,390
3,000 Walmart Stores,
Inc............ 7.25 6/ 1/13 2,787,180
---------------
13,841,640
---------------
TELECOMMUNICATIONS (0.2%)
1,000 AT&T Corp........ 8.125 7/15/24 975,250
---------------
TRANSPORTATION (1.3%)
1,000 AMR Corp......... 10.20 3/15/20 1,012,480
1,000 Consolidated Rail
Corp........... 9.75 6/15/20 1,158,140
1,000 Delta Air Lines,
Inc............ 10.375 2/ 1/11 987,330
1,000 Norfolk Southern
Corp........... 7.875 2/15/04 1,012,600
2,000 Union Pacific
Corp........... 7.875 2/ 1/23 1,890,900
---------------
6,061,450
---------------
UTILITIES - ELECTRIC (9.3%)
1,000 Chugach Electric
Association,
Inc............ 9.14 3/15/22 1,040,210
5,000 Duke Power Co.... 7.00 7/ 1/33 4,249,500
2,000 Florida Power &
Light Co....... 7.875 1/ 1/13 1,891,060
2,000 Georgia Power
Co............. 8.625 6/ 1/22 1,971,740
1,000 Houston Lighting
& Power Co..... 8.75 3/ 1/22 1,007,170
2,000 Houston Lighting
& Power Co..... 7.75 3/15/23 1,827,400
5,000 Northern States
Power Co....... 7.25 3/ 1/23 4,388,750
1,000 Pacific Gas &
Electric Co.... 8.25 11/ 1/22 959,870
5,000 Pacific Gas &
Electric Co.... 7.25 3/ 1/26 4,311,350
10,000 Pacific Gas &
Electric Co.... 7.25 8/ 1/26 8,619,600
3,000 Public Service
Electric & Gas
Co............. 7.875 11/ 1/01 3,012,330
7,000 Public Service
Electric & Gas
2,000 Southern
California
Edison Co...... 7.25 3/ 1/26 1,734,240
3,000 Virginia Electric
& Power Co..... 7.00 1/ 1/24 2,558,040
---------------
43,414,580
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
UTILITIES - TELEPHONE (1.2%)
$ 2,000 Alltel Corp...... 6.50% 11/ 1/13 $ 1,678,980
2,000 American
Telephone &
Telegraph
Co............. 7.50 6/ 1/06 1,967,160
1,000 GTE Corp......... 10.25 11/ 1/20 1,131,310
1,000 GTE Corp......... 8.75 11/ 1/21 1,011,390
---------------
5,788,840
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$236,066,215)......................... 221,937,046
---------------
U.S. GOVERNMENT AGENCIES & OBLIGATIONS (42.2%)
1,000 Federal Home
Loan Mortgage
Corp........... 7.14 12/15/07 934,160
9,484 Federal Home
Loan Mortgage 1/ 1/22-
Corp........... 8.00 6/ 1/24 9,350,386
62 Federal Home
Loan Mortgage 5/ 1/19-
Corp........... 11.50 6/ 1/20 68,525
1,000 Federal Home
Loan Mortgage
Corp. (CMO
Series 1046
F)............. 7.00 12/15/19 991,720
1,000 Federal Home
Loan Mortgage
Corp. (CMO
Series 1177
HA)............ 7.50 2/15/18 1,007,500
33,559 Federal National
Mortgage 1/ 1/24-
Association.... 7.00 7/14/24 31,198,997
27,000 Federal National
Mortgage
Association.... 8.00 8/11/24 25,997,408
25,000 Federal National
Mortgage
2,000 Federal National
Mortgage
Association
(Principal
Stripped)...... 8.40+ 8/21/01 1,714,375
27,922 Government
National
Mortgage 6/15/23-
Association 1.. 7.00 2/15/24 25,696,746
16,310 Government
National
Mortgage 6/15/22-
Association 1.. 7.50 8/15/23 15,550,467
1,894 Government
National
Mortgage 1/15/22-
Association 1.. 8.00 12/15/23 1,862,012
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
$ 879 Government
National
Mortgage 1/15/17-
Association 1.. 8.50% 11/15/21 $ 887,905
3,153 Government
National
Mortgage 6/15/16-
Association 1.. 9.00 2/15/21 3,258,026
518 Government
National
Mortgage 7/15/17-
Association 1.. 9.50 4/15/20 545,521
337 Government
National
Mortgage 5/15/16-
Association 1.. 10.00 4/15/19 361,511
1,900 Private Export
Funding
Services....... 5.48 9/15/03 1,861,050
5,000 Private Export
Funding
Services....... 5.80 2/01/04 4,569,000
1,000 Resolution
Funding Corp... 0.00 7/15/04 468,738
1,000 Student Loan
Marketing
Association*... 12.05 3/19/96 618,750
1,000 Tennessee Valley
Authority...... 7.75 12/15/22 919,228
5,000 Tennessee Valley
Authority...... 7.85 6/15/44 4,607,100
1,000 U.S. Treasury
Bond........... 7.625 11/15/22 993,906
27,000 U.S. Treasury
Bond........... 7.125 2/15/23 25,291,406
5,000 U.S. Treasury
Note........... 8.875 2/15/99 5,381,250
5,000 U.S. Treasury
Note........... 7.50 5/15/02 5,075,000
6,000 U.S. Treasury
Strip.......... 0.00 2/15/02 3,459,849
---------------
TOTAL U.S. GOVERNMENT AGENCIES &
$204,651,073)......................... 196,639,286
---------------
FOREIGN GOVERNMENT AGENCIES & OBLIGATIONS (6.0%)
1,000 Hydro Quebec..... 8.25 1/15/27 946,310
10,000 Italy-Republic... 6.875 9/27/23 8,244,900
3,000 Province of
Manitoba....... 6.875 9/15/02 2,850,210
6,000 Province of New
Brunswick...... 7.625 6/29/04 5,899,500
5,000 Province of Nova
Scotia......... 9.50 2/ 1/19 5,360,200
5,000 Province of
Quebec......... 7.50 7/15/23 4,359,200
---------------
TOTAL FOREIGN GOVERNMENT AGENCIES &
OBLIGATIONS (IDENTIFIED COST
$30,209,590).......................... 27,660,320
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (8.3%)
COMMERCIAL PAPER (A) (0.6%)
AUTOMOTIVE FINANCE
$ 3,000 Ford Motor Credit Co. 4.251% due
7/14/94 (Amortized Cost
$2,995,395)........................ $ 2,995,395
---------------
U.S. GOVERNMENT AGENCIES (A) (7.6%)
4,000 Federal Farm Credit Bank 4.171% due
7/14/94............................ 3,993,976
5,500 Federal Farm Credit Bank 4.181% due
7/14/94............................ 5,491,698
5,000 Federal Farm Credit Bank 4.201% due
7/14/94............................ 4,992,417
10,000 Federal National Mortgage Association
4.151% due 7/14/94................. 9,985,013
11,000 Federal National Mortgage Association
4.161% due 7/14/94................. 10,983,476
---------------
TOTAL U.S. GOVERNMENT AGENCIES &
OBLIGATIONS (IDENTIFIED COST
$35,446,580)....................... 35,446,580
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT (0.1%)
(dated 6/30/94; proceeds $410,473;
collateralized by $415,133 U.S.
Treasury Note 6.50% due 5/15/97
valued at $418,613) (Identified
Cost $410,405)..................... $ 410,405
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $38,852,380)...... 38,852,380
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$509,779,258) (B)............... 104.1 % 485,089,032
LIABILITIES IN EXCESS OF OTHER
ASSETS.......................... (4.1) (19,286,024)
---------- -------------
NET ASSETS........................ 100.0 % $$465,803,008
---------- -------------
---------- -------------
<FN>
- ------------------
+ CURRENTLY ZERO COUPON BOND UNDER TERMS OF INITIAL OFFERING.
* PRINCIPAL EXCHANGE RATE LINKED SECURITY.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN
HAVE BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS
$510,743,102; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $2,673,275 AND
THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $28,327,345, RESULTING IN
NET UNREALIZED DEPRECIATION OF $25,654,070.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (82.3%)
AEROSPACE (2.9%)
$ 2,000 Rohr, Inc....... 11.625% 5/15/03 $ 2,035,000
1,500 Sabreliner Corp.
(Series B).... 12.50 4/15/03 1,455,000
---------------
3,490,000
---------------
AIRLINES (3.4%)
5,000 GPA Delaware,
Inc........... 8.75 12/15/98 4,050,000
556 Trans World
Airlines,
Inc........... 8.00+ 11/ 3/00 105,640
---------------
4,155,640
---------------
AUTOMOTIVE (4.1%)
Inc........... 11.875 6/ 1/02 1,007,500
2,000 Envirotest
Systems
Corp.......... 9.625 4/ 1/03 1,870,000
2,000 Truck Components
Inc. - 144A**
(Series A).... 12.75* 6/30/01 2,040,000
---------------
4,917,500
---------------
CABLE & TELECOMMUNICATIONS (1.6%)
2,000 Marcus Cable
Co............ 11.875 10/ 1/05 1,955,000
---------------
CHEMICALS (1.7%)
2,000 Polymer Group,
Inc. -
144A**........ 12.25 7/15/02 2,000,000
---------------
COMPUTER EQUIPMENT (2.7%)
3,000 Unisys Corp..... 13.50* 7/ 1/97 3,277,500
---------------
CONSUMER PRODUCTS (2.5%)
1,850 J.B. Williams
Holdings,
Inc. - 144A**.. 12.50* 3/ 1/04 1,808,375
3,000 Revlon Worldwide
Corp. (Series
B)............ 0.00 3/15/98 1,260,000
---------------
3,068,375
---------------
CONTAINERS (1.3%)
3,000 Ivex Holdings
Corp. (Series
B)............ 13.25++ 3/15/05 1,537,500
---------------
ELECTRICAL & ALARM SYSTEMS (1.7%)
3,000 Mosler, Inc..... 11.00 4/15/03 2,100,000
---------------
ENTERTAINMENT, GAMING & LODGING (13.8%)
1,000 Belle Casino,
Inc. - 144A**.. 12.00 10/15/00 550,000
2,000 Fair Lanes, Inc.
(b)........... 11.875 8/15/97 1,476,260
1,000 Fitzgeralds
Gaming Corp. -
144A**........ 13.00* 3/15/96 900,000
3,000 Hollywood Casino
Corp.......... 14.00 4/ 1/98 3,240,000
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
$ 2,000 Motels of
America Inc. -
144A**
(Units)....... 12.00% 4/15/04 $ 2,040,000
5,189 Spectravision,
Inc........... 11.65+ 12/ 1/02 2,438,830
Gaming &
Resorts, Inc.
- 144A**...... 12.25 11/15/00 1,800,000
2,000 Trump Castle
Funding,
Inc........... 11.75 11/15/03 1,520,000
3,481 Trump Plaza
Holding
Assoc......... 12.50+ 6/15/03 2,889,076
---------------
16,854,166
---------------
FOOD & BEVERAGES (2.3%)
1,000 Envirodyne
Industries,
Inc........... 10.25 12/ 1/01 870,000
5,000 Specialty Foods
Acquisition
Corp. (Series
B)............ 13.00++ 8/15/05 1,975,000
---------------
2,845,000
---------------
HOME BUILDING (0.8%)
1,000 Presley Cos.,
Inc........... 12.50 7/ 1/01 992,500
---------------
MANUFACTURING (4.3%)
2,000 Berry Plastics
Corp.
(Units)....... 12.25 4/15/04 2,060,000
3,000 MS Essex
Holdings,
Inc........... 16.00++ 5/15/04 2,745,000
500 Uniroyal
Technology
Corp.......... 11.75 6/ 1/03 485,000
---------------
5,290,000
---------------
MANUFACTURING - DIVERSIFIED (4.0%)
3,000 Interlake
Corp.......... 12.125 3/ 1/02 2,910,000
2,000 J.B. Poindexter,
Inc........... 12.50 5/15/04 1,990,000
---------------
4,900,000
---------------
OIL & GAS PRODUCTS (5.4%)
2,000 Deeptech
International,
Inc........... 12.00 12/15/00 2,010,000
2,000 Empire Gas Corp.
(Units)....... 7.00++ 7/15/04 1,570,000
3,000 Presidio Oil Co.
(Series B).... 14.125*** 7/15/02 3,030,000
---------------
6,610,000
---------------
PAPER & FOREST PRODUCTS (3.2%)
4,000 Fort Howard
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
PUBLISHING (6.7%)
$ 2,000 Affiliated
Newspapers
Inv., Inc.
(Units)....... 13.25++% 7/ 1/06 $ 1,100,000
3,800 BFP Holdings,
Inc. - 144A**
(Units)....... 13.50++ 4/15/04 2,166,000
2,000 Garden State
Newspapers,
Inc........... 12.00 7/ 1/04 2,020,000
2,000 United States
Banknote Corp.
- 144A**...... 11.625 8/ 1/02 1,990,000
1,000 Webcraft
Technologies,
Inc........... 9.375 2/15/02 930,000
---------------
8,206,000
---------------
RESTAURANTS (6.9%)
4,000 American
Restaurant
Group
Holdings,
Inc........... 14.00++ 12/15/05 2,000,000
3,000 Carrols Corp.... 11.50 8/15/03 2,850,000
4,000 Flagstar Corp... 11.25 11/ 1/04 3,600,000
---------------
8,450,000
---------------
RETAIL (5.8%)
2,000 Cort Furniture
Rental Corp... 12.00 9/ 1/00 2,020,000
2,000 County Seat
Stores, Co.... 12.00 10/ 1/01 2,020,000
3,000 Thrifty Payless
Holdings,
Inc........... 12.25 4/15/04 3,060,000
---------------
7,100,000
---------------
RETAIL - FOOD CHAINS (4.1%)
2,000 Food 4 Less
Holdings,
Inc........... 15.25++ 12/15/04 1,430,000
15,000 Grand Union
Capital Corp.
(Series A).... 0.00 1/15/07 1,612,500
2,000 Purity Supreme,
Inc. (Series
B)............ 11.75 8/ 1/99 1,920,000
4,962,500
---------------
TEXTILES - APPAREL MANUFACTURER (2.3%)
3,000 JPS Textiles
Group, Inc.... 10.85 6/ 1/99 2,850,000
---------------
TRANSPORTATION (0.8%)
1,000 Trans Ocean
Container
Corp.......... 12.25 7/ 1/04 1,007,500
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$105,349,445)....................... 100,429,181
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (12.4%)
$ 15,000 U.S. Treasury Note 12.625% due
8/15/94 (Identified Cost
$15,489,218)....................... $ 15,150,000
---------------
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
COMMON STOCKS (A)(1.5%)
BUILDING & CONSTRUCTION (0.2%)
13,538 USG Corp. (c)........................ 245,376
---------------
COMPUTER EQUIPMENT (0.1%)
39,813 Memorex Telex Corp. (c).............. 153,033
---------------
ENTERTAINMENT, GAMING & LODGING (0.1%)
4,000 Trump Taj Mahal, Inc. (Class A)...... 118,000
71,890 Vagabond Inns, Inc. (Class D) (b)
(c)................................ 72
---------------
118,072
---------------
FOOD & BEVERAGES (0.1%)
45,000 Specialty Foods Aquisition
Corp. - 144A**..................... 45,000
---------------
MANUFACTURING - DIVERSIFIED (0.8%)
84,072 Thermadyne Holdings Corp. (c)........ 987,846
---------------
RESTAURANT (0.1%)
4,000 American Restaurant Group Holdings,
Inc. - 144A**...................... 92,000
---------------
RETAIL (0.1%)
57,000 Thrifty Payless Holdings, Inc. (Class
C)................................. 171,000
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
---------------
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE
- ----------- ---------------
<C> <S> <C> <C>
WARRANTS (A)(0.5%)
AEROSPACE (0.0%)
1,500 Sabreliner Corp.......... 4/15/03 30,000
---------------
BUILDING & CONSTRUCTION (0.1%)
6,320 USG Corp. (c)............ 5/ 6/98 64,780
---------------
CONTAINERS (0.1%)
2,000 Crown Packaging Holdings,
Ltd. - 144A**.......... 10/15/03 90,000
---------------
ENTERTAINMENT, GAMING & LODGING (0.2%)
1,000 Belle Casino,
Inc. - 144A**.......... 10/15/03 70,000
1,000 Boomtown, Inc. - 144A**.. 11/ 1/98 26,250
3,263 Casino America, Inc...... 11/15/96 4,895
1,000 Fitzgeralds Gaming Corp.
- 144A**............... 3/15/99 65,000
10,000 Treasury Bay Gaming &
Resorts, Inc. -
144A**................. 11/15/98 60,000
100 Trump Plaza Holding
Assoc.................. 6/18/96 70,500
---------------
296,645
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE VALUE
- ----------- ---------- ---------------
<C> <S> <C> <C>
MANUFACTURING (0.0%)
5,000 Uniroyal Technology
Corp................... 6/ 1/03 $ 13,750
---------------
RETAIL (0.1%)
2,000 County Seat Stores, Co... 10/15/98 26,000
66,000 New Cort Holdings Corp... 9/ 1/98 82,500
---------------
108,500
---------------
RETAIL - FOOD CHAINS (0.0%)
6,931 Purity Supreme, Inc...... 8/ 1/97 347
---------------
TOTAL WARRANTS (IDENTIFIED COST
$475,906).......................... 604,022
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (3.8%)
COMMERCIAL PAPER (D) (2.5%)
AUTOMOTIVE FINANCE (2.5%)
$ 3,000 Ford Motor Credit Co. 4.101% due 7/
1/94 (Amortized Cost $3,000,000)... 3,000,000
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
REPURCHASE AGREEMENT (1.3%)
1,608 The Bank of New York 6.00% due 7/1/94
(dated 6/30/94; proceeds
$1,608,575; collaterized by
$1,626,849 U.S. Treasury Note 6.50%
due 5/15/97 valued at $1,640,473)
(Identified Cost $1,608,307)....... $ 1,608,307
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $4,608,307)....... 4,608,307
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$136,845,131) (E)............... 100.5 % 122,603,837
LIABILITIES IN EXCESS OF OTHER
ASSETS.......................... (0.5) (648,427)
---------- -------------
NET ASSETS........................ 100.0 % $ 121,955,410
---------- -------------
---------- -------------
<FN>
- ------------------
* ADJUSTABLE RATE. RATE SHOWN IS THE RATE IN EFFECT AT JUNE 30, 1994.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
*** FLOATING RATE. COUPON IS LINKED TO THE GAS INDEX. RATE SHOWN IS THE
RATE IN EFFECT AT JUNE 30, 1994.
+ PAYMENT IN KIND SECURITIES.
++ CURRENTLY ZERO COUPON BOND UNDER TERMS OF INITIAL OFFERING.
(A) NON-INCOME PRODUCING SECURITY.
(B) NON-INCOME PRODUCING, ISSUER IN BANKRUPTCY.
(C) ACQUIRED THROUGH EXCHANGE OFFER.
(D) COMMERCIAL PAPER WAS PURCHASED ON DISCOUNT BASIS. THE RATE SHOWN HAS BEEN
ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(E) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $136,931,819, THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,854,244, AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $16,182,226, RESULTING IN NET UNREALIZED
DEPRECIATION OF $14,327,982.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS (12.7%)
NATURAL GAS (0.2%)
$ 1,000 Panhandle Eastern
Pipeline
Company........ 7.95 % 3/15/23 $ 929,940
---------------
TELECOMMUNICATIONS (3.1%)
5,000 Century Telephone
Enterprises,
Inc............ 8.25 5/ 1/24 4,817,750
2,000 GTE Corp......... 7.83 5/ 1/23 1,826,400
5,000 Southern New
England
Telephone
Company........ 7.25 12/15/33 4,366,900
2,000 Sprint Corp...... 9.25 4/15/22 2,176,780
---------------
13,187,830
---------------
UTILITIES - ELECTRIC (9.4%)
2,000 Arizona Public
Service
Company........ 7.25 8/ 1/23 1,696,100
2,000 Arizona Public
Service
Company........ 8.00 2/ 1/25 1,833,000
5,000 Arkansas Power &
Light
Company........ 7.00 10/ 1/23 4,106,700
1,000 Central Power &
Light
Company........ 7.50 4/ 1/23 894,790
5,000 Commonwealth
Edison Corp.... 7.00 2/15/97 4,959,500
2,000 Consumer Power
Company........ 7.375 9/15/23 1,680,380
2,000 Dayton Power &
Light
Company........ 7.875 2/15/24 1,902,280
2,000 Florida Power &
Light Co....... 7.05 12/ 1/26 1,706,320
1,000 Georgia Power
Co............. 8.625 6/ 1/22 985,870
5,000 GGIB Funding
Corp........... 7.43 1/15/11 4,465,900
1,000 Illinois Power
Company........ 8.75 7/ 1/21 976,700
3,000 Indianapolis
Power Co....... 7.05 2/ 1/24 2,591,580
2,000 Long Island
Lighting
Company........ 9.625 7/ 1/24 1,913,940
1,000 New York State
Electric & Gas
Corp........... 8.875 11/ 1/21 1,009,610
1,000 Niagara Mohawk
Power
Corporation
First
Mortgage....... 7.375 8/ 1/03 927,710
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
$ 1,000 Old Dominion
Electric
Cooperative
Utility........ 8.76 % 12/ 1/22 $ 992,630
2,000 Philadelphia
Electric
Company........ 7.75 5/ 1/23 1,778,760
500 Public Service
Company of New
Hampshire...... 9.17 5/15/98 515,235
2,000 South Carolina
Electric & Gas
Co............. 7.625 6/ 1/23 1,816,300
3,000 Wisconsin
Electric Power
Company........ 7.05 8/ 1/24 2,613,450
---------------
39,366,755
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$58,234,160).......................... 53,484,525
---------------
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
PREFERRED STOCK (0.1%)
UTILITIES - ELECTRIC (0.1%)
3,039 Cleveland Electric Illuminating Co.
9.125% (Series N) (Identified Cost
$309,978).......................... 300,481
---------------
COMMON STOCKS (84.7%)
NATURAL GAS (13.5%)
90,000 Apache Corp.......................... 2,486,250
120,000 Burlington Resources, Inc............ 4,965,000
45,000 Centerior Energy Corp................ 455,625
150,000 El Paso Natural Gas Company.......... 4,837,500
180,000 ENSERCH Corp......................... 2,587,500
85,000 Equitable Resource, Inc.............. 2,921,875
115,000 Louisiana Land & Exploration Co.
(The).............................. 4,887,500
130,000 Panhandle Eastern Corp............... 2,567,500
130,000 Questar Corp......................... 4,208,750
210,000 Seagull Energy Corp.*................ 5,433,750
140,000 Tenneco, Inc......................... 6,492,500
145,000 TransCanada Pipelines, Ltd........... 1,721,875
85,000 UGI Corp............................. 1,689,375
150,000 Union Texas Petroleum Holdings,
Inc................................ 2,681,250
110,000 USX Delhi-Group...................... 1,567,500
250,000 Williams Companies, Inc.............. 7,156,250
---------------
56,660,000
---------------
TELECOMMUNICATIONS (30.1%)
230,000 ALLTEL Corp.......................... 5,778,750
130,000 AT&T Corp............................ 7,068,750
190,000 BCE, Inc............................. 6,151,250
300,000 Cable & Wireless PLC (ADR)........... 5,587,500
160,000 Century Telephone Enterprises, Inc... 4,140,000
70,000 Cincinnati Bell, Inc................. 1,146,250
90,000 Comcast Corp. (Class A Special)...... 1,608,750
180,000 Comcast Corp. (Class A).............. 3,217,500
155,000 Comsat Corp.......................... 3,603,750
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
90,000 Ericsson (L.M.) TEL (ADR)............ $ 4,455,000
175,000 GTE Corp............................. 5,512,500
125,000 McCaw Cellular Communications (Class
A)*................................ 6,453,125
180,000 MCI Communications Corp.............. 3,982,500
125,000 MFS Communications Co., Inc.*........ 3,031,250
175,000 Northern Telecom, Ltd................ 4,834,375
140,000 NYNEX Corp........................... 5,302,500
130,000 Pacific Telesis Group, Inc........... 4,013,750
240,000 Rochester Telephone Corp............. 5,430,000
185,000 Southern New England
Telecommunications Corp............ 5,642,500
130,000 Southwestern Bell Corp............... 5,655,000
125,000 Sprint Corp.......................... 4,359,375
35,000 Tele Danmark A/S (ADR)............... 861,875
100,000 Telecommunications Corp. New Zealand
Ltd. (ADR)......................... 4,250,000
125,000 Telefonos de Mexico, SA Series L
(ADR).............................. 6,984,375
135,000 Telephone Data Systems, Inc.......... 4,995,000
115,000 Time Warner, Inc..................... 4,039,375
110,000 U.S. West, Inc....................... 4,606,250
---------------
125,900,625
---------------
UTILITIES - ELECTRIC (40.0%)
40,000 Atlantic Energy, Inc................. 680,000
230,000 Baltimore Gas & Electric Co.......... 4,887,500
135,000 Carolina Power & Light Co............ 3,121,875
265,000 CMS Energy Corp...................... 5,531,875
130,000 Consolidated Edison of New York,
Inc................................ 3,445,000
160,000 Detroit Edison Co.................... 3,960,000
215,000 DPL, Inc............................. 4,246,250
135,000 DQE, Inc............................. 3,999,375
200,000 Entergy Corp......................... 4,950,000
155,000 FPL Group, Inc....................... 4,630,625
175,000 General Public Utilities Corp........ 4,593,750
125,000 Hawaiian Electric Industries, Inc.... 3,875,000
120,000 Houston Industries, Inc.............. 3,915,000
265,000 Illinova Corp........................ 4,968,750
150,000 IPALCO Enterprises, Inc.............. 4,331,250
145,000 Kansas City Power & Light Company.... 2,809,375
185,000 Long Island Lighting Company......... 3,283,750
150,000 Montana Power Company................ 3,356,250
75,000 Motorola, Inc........................ 3,337,500
110,000 New England Electric System.......... 3,588,750
110,000 New York State Electric & Gas Corp... 2,612,500
240,000 Niagara Mohawk Power Corp............ 3,630,000
180,000 NIPSCO Industries, Inc............... 5,310,000
100,000 Northeast Utilities.................. 2,175,000
150,000 Pacific Gas & Electric Co............ 3,562,500
310,000 Pacificorp........................... 5,231,250
240,000 Pinnacle West Capital Corp........... 3,930,000
110,000 Portland General Corp................ 1,870,000
130,000 Potomac Electric Power Co............ 2,486,250
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
255,000 PSI Resources, Inc................... $ 5,386,875
210,000 Public Service Company of Colorado... 5,486,250
240,000 Public Service Company of New
Mexico*............................ 2,760,000
155,000 Public Service Enterprise Group,
Inc................................ 4,030,000
100,000 Puget Sound Power & Light Company.... 1,875,000
120,000 San Diego Gas & Electric Company..... 2,220,000
90,000 SCANA Corp........................... 3,858,750
120,000 SCEcorp.............................. 1,545,000
280,000 Southern Co.......................... 5,250,000
245,000 Tele-Communications, Inc. (Class
A)*................................ 4,991,875
145,000 Texas Utilities Co................... 4,549,375
165,000 Western Resources Corp............... 4,434,375
210,000 Wisconsin Energy Corp................ 5,013,750
---------------
167,384,375
---------------
UTILITIES - GAS (1.1%)
120,000 Columbia Gas Systems, Inc.*.......... 3,240,000
80,000 Transco Energy, Inc.................. 1,300,000
---------------
4,540,000
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$378,072,165)...................... 354,485,000
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (1.5%)
U.S. GOVERNMENT AGENCY (A) (0.9%)
3,605 Federal National Mortgage Association
4.10% due
7/1/94 (Amortized Cost
$3,605,000)........................ 3,605,000
---------------
REPURCHASE AGREEMENT (0.6%)
2,690 The Bank of New York 6.00% due 7/
1/94 (dated 6/30/94: proceeds
$2,690,829: collateralized by
$2,721,401 U.S. Treasury Note 6.50%
due 5/15/97 valued at $2,744,189)
(Identified Cost $2,690,381)....... 2,690,381
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $6,295,381)....... 6,295,381
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$442,911,684) (B)............... 99.0 % 414,565,387
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 1.0 4,143,669
---------- -------------
NET ASSETS........................ 100.0 % $ 418,709,056
---------- -------------
---------- -------------
<FN>
- ------------------
ADR - AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(A) U.S. GOVERNMENT AGENCY WAS PURCHASED ON A DISCOUNT BASIS. THE RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $442,951,506; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $17,197,442 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $45,583,561, RESULTING IN NET UNREALIZED
DEPRECIATION OF $28,386,119.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (93.6%)
AEROSPACE (4.0%)
171,000 Raytheon Co.......................... $ 11,072,250
171,500 United Technologies Corp............. 11,018,875
---------------
22,091,125
---------------
ALUMINUM (2.1%)
152,000 Aluminum Co. of America.............. 11,115,000
---------------
AUTO PARTS (2.0%)
167,000 TRW, Inc............................. 10,771,500
---------------
AUTOMOBILES (4.1%)
191,000 Ford Motor Co........................ 11,269,000
219,000 General Motors Corp.................. 11,004,750
---------------
22,273,750
---------------
BANKING (3.9%)
234,100 BankAmerica Corp..................... 10,710,075
156,000 Bankers Trust N.Y. Corp.............. 10,393,500
---------------
21,103,575
---------------
BEVERAGES (1.9%)
347,500 PepsiCo, Inc......................... 10,642,187
---------------
CHEMICALS (5.9%)
159,800 Dow Chemical Co. (The)............... 10,446,925
232,750 Eastman Chemical Co.................. 11,113,812
268,500 Grace (W.R.) & Co.................... 10,706,437
---------------
32,267,174
---------------
COMPUTERS (1.9%)
176,000 International Business Machines
Corp............................... 10,340,000
---------------
CONGLOMERATES (3.9%)
214,800 Minnesota Mining & Manufacturing
Co................................. 10,632,600
235,500 Tenneco, Inc......................... 10,921,313
---------------
21,553,913
---------------
163,700 Gillette Co. (The)................... 10,660,963
---------------
DRUGS (5.9%)
370,000 Abbott Laboratories.................. 10,730,000
193,800 American Home Products Corp.......... 10,998,150
198,200 Bristol-Myers Squibb Co.............. 10,628,475
---------------
32,356,625
---------------
ELECTRIC - MAJOR (4.6%)
307,200 General Electric Co.................. 14,323,200
910,000 Westinghouse Electric Corp........... 10,578,750
---------------
24,901,950
---------------
FINANCE (2.0%)
320,000 Household International, Inc......... 10,880,000
---------------
FOODS (3.9%)
149,700 Quaker Oats Co. (The)................ 10,460,288
499,000 Sara Lee Corp........................ 10,603,750
---------------
21,064,038
---------------
HOUSEHOLD PRODUCTS (1.9%)
199,400 Procter & Gamble Co.................. 10,642,975
---------------
INSURANCE (2.0%)
196,000 Aetna Life & Casualty Co............. 10,951,500
---------------
METALS & MINING (1.7%)
165,000 Phelps Dodge Corp.................... 9,405,000
---------------
NATURAL GAS (3.9%)
322,000 El Paso Natural Gas Co............... 10,384,500
548,000 Panhandle Eastern Corp............... 10,823,000
---------------
21,207,500
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
OFFICE EQUIPMENT (1.9%)
276,000 Pitney Bowes, Inc.................... $ 10,557,000
---------------
OIL & GAS PRODUCTS (2.0%)
261,000 Burlington Resources, Inc............ 10,798,875
---------------
OIL - DOMESTIC (2.1%)
109,000 Atlantic Richfield Co................ 11,131,625
OIL INTEGRATED - INTERNATIONAL (5.9%)
188,000 Exxon Corp........................... 10,645,500
135,500 Mobil Corp........................... 11,060,187
101,900 Royal Dutch Petroleum Co............. 10,661,287
---------------
32,366,974
---------------
PAPER & FOREST PRODUCTS (3.9%)
177,300 Georgia Pacific Corp................. 10,615,838
266,500 Weyerhaeuser Co...................... 10,660,000
---------------
21,275,838
---------------
PHOTOGRAPHY (2.1%)
233,500 Eastman Kodak Co..................... 11,237,187
---------------
RAILROADS (1.9%)
198,500 Burlington Northern, Inc............. 10,594,938
---------------
RETAIL (4.0%)
705,800 K-Mart Corp.......................... 10,939,900
275,000 May Department Stores Co............. 10,793,750
---------------
21,733,650
---------------
TELECOMMUNICATIONS (2.0%)
266,000 U.S. West, Inc....................... 11,138,750
---------------
TELEPHONES (4.3%)
207,800 Bell Atlantic Corp................... 11,636,800
378,500 GTE Corp............................. 11,922,750
---------------
23,559,550
---------------
TOBACCO (2.0%)
212,000 Philip Morris Cos., Inc.............. 10,918,000
---------------
UTILITIES - ELECTRIC (3.9%)
467,500 Commonwealth Edison Co............... 10,635,625
360,500 FPL Group, Inc....................... 10,769,938
---------------
21,405,563
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$502,064,379)...................... 510,946,725
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN MATURITY COUPON
THOUSANDS) RATE RATE
- ----------- --------- ----------------
U.S. GOVERNMENT OBLIGATIONS (6.1%)
$ 2,000 U.S. Treasury
Bond........... 8.125% 8/15/19 2,080,625
5,000 U.S. Treasury
Bond........... 8.00 11/15/21 5,165,625
5,000 U.S. Treasury
Bond........... 7.125 2/15/23 4,683,594
8,000 U.S. Treasury
Bond........... 6.25 8/15/23 6,728,750
10,000 U.S. Treasury
Note........... 4.25 7/31/95 9,859,375
5,000 U.S. Treasury
Note........... 6.375 1/15/99 4,902,344
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $34,736,875)......... 33,420,313
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (1.3%)
COMMERCIAL PAPER(A) (1.3%)
AUTOMOTIVE FINANCE (1.3%)
$ 6,800 Ford Motor Credit Co. 4.10% due
7/1/94 (Amortized Cost
$6,800,000)........................ $ 6,800,000
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.0%)
$ 105 The Bank of New York 6.00% due 7/1/94
(dated 6/30/94; proceeds $105,227;
collateralized by $106,418 U.S.
Treasury Note 6.50% due 5/15/97
valued at $107,313) (Identified
Cost $105,209)..................... $ 105,209
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $6,905,209)....... 6,905,209
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$543,706,463)(B)................ 101.0 % 551,272,247
LIABILITIES IN EXCESS OF OTHER
ASSETS.......................... (1.0) (5,395,418)
---------- -------------
NET ASSETS........................ 100.0 % $ 545,876,829
---------- -------------
---------- -------------
<FN>
- ------------------
ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $544,226,074; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $28,360,395 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $21,314,222, RESULTING IN NET UNREALIZED
APPRECIATION OF $7,046,173.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (99.8%)
ADVERTISING (2.5%)
36,000 Interpublic Group of Cos., Inc........ $ 1,116,000
-------------
APPAREL (2.6%)
36,500 Cintas Corp........................... 1,168,000
-------------
AUTOMOTIVE (2.4%)
30,600 Genuine Parts......................... 1,105,425
-------------
BANKING (7.6%)
34,700 Banc One Corp......................... 1,188,475
36,100 Central Fidelity Banks, Inc........... 1,164,225
21,200 Fifth Third Bancorp................... 1,107,700
-------------
3,460,400
-------------
BEVERAGES (4.6%)
20,600 Anheuser-Busch Cos., Inc.............. 1,045,450
26,400 Coca Cola Co. (The)................... 1,072,500
-------------
2,117,950
-------------
BUSINESS SYSTEMS (2.4%)
31,900 General Motors Corp. (Class E)........ 1,112,513
-------------
CHEMICALS - SPECIALTY (4.7%)
33,400 Nalco Chemical........................ 1,064,625
27,500 Sigma-Aldrich, Inc.................... 1,100,000
-------------
2,164,625
-------------
COMPUTER SERVICES (2.5%)
21,700 Automatic Data Processing, Inc........ 1,152,812
-------------
CONSUMER SERVICES (2.4%)
27,500 Block (H&R), Inc...................... 1,079,375
-------------
COSMETICS (2.6%)
Inc................................. 1,177,663
-------------
DISTRIBUTION (2.2%)
44,700 Sysco Corp............................ 1,011,338
-------------
DRUGS & HEALTHCARE (7.7%)
40,000 Abbott Laboratories................... 1,160,000
7,000 Block Drugs, Inc. (Class A)........... 222,250
25,100 Forest Labs, Inc.*.................... 1,091,850
17,200 Schering-Plough Corp.................. 1,053,500
-------------
3,527,600
-------------
ELECTRONICS - SPECIALTY (5.1%)
32,400 Dionex Corp.*......................... 1,077,300
9,100 EG & G, Inc........................... 136,500
17,500 Grainger (W.W.), Inc.................. 1,117,813
-------------
2,331,613
-------------
ENTERTAINMENT (2.5%)
53,500 Circus Circus Enterprises*............ 1,150,250
-------------
FINANCIAL - MISCELLANEOUS (2.4%)
13,200 Federal National Mortgage
Association......................... 1,102,200
-------------
FOODS (9.6%)
37,500 ConAgra, Inc.......................... 1,143,750
22,400 Smucker (J.M.) Co., (Class A)......... 526,400
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
28,900 Smucker (J.M.) Co., (Class B)......... $ 614,125
17,700 Tootsie Roll Industries, Inc.......... 1,046,513
22,200 Wrigley, (W.M.) Jr., (Class A)........ 1,054,500
-------------
4,385,288
-------------
HOUSEHOLD PRODUCTS (2.4%)
42,400 Rubbermaid, Inc....................... 1,113,000
-------------
INSURANCE (2.4%)
67,600 Crawford & Co., (Class B)............. 1,115,400
-------------
MACHINERY - DIVERSIFIED (2.4%)
29,400 Thermo Electron Co.*.................. 1,095,150
-------------
MANUFACTURED HOUSING (2.2%)
57,700 Clayton Homes, Inc.*.................. 1,016,962
MANUFACTURING (2.2%)
59,601 Federal Signal Corp................... 1,013,217
-------------
MEDICAL EQUIPMENT (2.5%)
42,500 Stryker Corp.......................... 1,126,250
-------------
MEDICAL PRODUCTS & SUPPLIES (2.6%)
112,900 Biomet, Inc.*......................... 1,185,450
-------------
RESTAURANTS (4.7%)
62,700 International Dairy Queen, (Class
A)*................................. 1,034,550
38,000 McDonald's Corp....................... 1,097,250
-------------
2,131,800
-------------
RETAIL (2.5%)
47,300 Wal-Mart Stores, (Class A)............ 1,147,025
-------------
RETAIL - DEPARTMENT STORES (2.5%)
37,300 Dillard Dept. Stores, (Class A)....... 1,151,638
-------------
RETAIL - DRUG STORES (2.2%)
26,800 Walgreen Co........................... 978,200
-------------
SUPERMARKETS (2.5%)
41,000 Albertson's, Inc...................... 1,127,500
-------------
TOBACCO (2.4%)
41,000 UST, Inc.............................. 1,112,125
-------------
UTILITIES (2.5%)
36,000 Citizens Utilities Co. of Delaware
(Series A).......................... 499,505
42,400 Citizens Utilities Co. of Delaware
(Series B).......................... 583,004
-------------
1,082,509
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$46,711,982)........................ 45,559,278
------------
TOTAL INVESTMENTS (IDENTIFIED COST
$46,711,982)(A).................. 99.8 % 45,559,278
OTHER ASSETS IN EXCESS OF
LIABILITIES...................... 0.2 89,878
---------- ------------
NET ASSETS......................... 100.0 % $ 45,649,156
---------- ------------
---------- ------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $47,074,875; THE
GROSS UNREALIZED DEPRECIATION IS $3,185,940, RESULTING IN NET UNREALIZED
DEPRECIATION OF $1,515,597.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS AND RIGHTS (95.2%)
AUSTRIA (1.4%)
ELECTRIC UTILITIES
7,500 Evn-Energieversorgung Ni........ $ 915,157
15,500 Oester Elex (A Shares).......... 884,094
---------------
TOTAL AUSTRIA................... 1,799,251
---------------
BELGIUM (1.6%)
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
9,520 Colruyt SA...................... 2,079,654
---------------
DENMARK (2.2%)
TELECOMMUNICATIONS
56,000 Tele Danmark*................... 2,811,191
---------------
FINLAND (2.7%)
ELECTRONICS
42,000 Nokia AB (Pref.)................ 3,451,838
---------------
FRANCE (7.7%)
AUTOMOBILES
7,500 Psa Peugeot Citroen............. 1,059,760
---------------
FINANCIAL SERVICES
20,405 Credit Local de France.......... 1,393,075
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
8,000 LVMH Moet Hennessey Louis....... 1,225,588
---------------
INSURANCE
31,492 Scor SA......................... 703,217
11,000 Ste Cen Group Assurance Natural
SA............................ 789,238
9,000 Union Assurances Federale SA.... 942,253
---------------
2,434,708
---------------
MULTI-INDUSTRY
2,835 Eurafrance...................... 1,013,408
---------------
OIL & RELATED
15,000 Elf Aquitaine................... 1,042,189
---------------
TEXTILES
21,000 Christian Dior.................. 1,602,434
---------------
---------------
GERMANY (8.1%)
AUTOMOBILES
3,272 Bayerische Motoren Werke*....... 1,601,908
8 Bayerische Motoren Werke*
(Rights)...................... 85
---------------
1,601,993
---------------
BANKING
3,300 Dt. Pfandbrief U.
Hypothekenbank................ 1,555,549
---------------
BUSINESS SERVICES
1,490 Sap AG (Pref.).................. 2,950,634
---------------
CHEMICALS
3,000 Henkel Kgaa-Vorzug (Non-voting
preferred).................... 1,102,498
---------------
PHARMACEUTICAL
3,100 Gehe A.G........................ 1,056,553
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
RETAIL
667 Hornbach Baumarkt Holding*...... $ 399,815
1,580 Hornbach Holding AG (Pref.)..... 1,636,329
---------------
2,036,144
---------------
TOTAL GERMANY................... 10,303,371
---------------
ITALY (4.5%)
ELECTRICAL EQUIPMENT
180,000 Ansaldo Trans................... 742,947
---------------
HOUSEHOLD FURNISHINGS & APPLIANCES
29,700 Industrie Natuzzi SPA (ADR)..... 757,350
---------------
MANUFACTURING
34,800 Luxottica Group (ADR)........... 1,187,550
---------------
PUBLISHING
24,000 Arnold Mondadori Editore*....... 254,465
24,000 Silvio Berlusconi Editore*...... 254,465
---------------
508,930
---------------
TELECOMMUNICATIONS
1,032,750 Sip Itl 1000.................... 2,577,802
---------------
TOTAL ITALY..................... 5,774,579
LUXEMBOURG (1.5%)
FINANCIAL SERVICES
290,000 Intrum Justitia, PLC............ 433,765
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
67,500 Quilmes Industrial SA........... 1,525,500
---------------
TOTAL LUXEMBOURG................ 1,959,265
---------------
NETHERLANDS (8.3%)
BUSINESS SERVICES
43,000 Randstad Holdings............... 1,920,309
---------------
INSURANCE
15,942 Aegon NV........................ 814,542
---------------
MANUFACTURING
25,000 Hunter Douglas NV............... 1,026,918
15,000 Polynorm NV*.................... 1,527,786
---------------
2,554,704
---------------
PHARMACEUTICAL
11,750 OPG (Apoth. Coop.) UA........... 276,177
---------------
PUBLISHING
14,000 Elsevier........................ 1,198,724
16,000 VNU-Ver Ned Utigev.............. 1,547,261
---------------
2,745,985
---------------
TRANSPORTATION
37,162 Boskalis Westminster............ 836,036
67,500 IHC Caland...................... 1,375,007
---------------
2,211,043
---------------
TOTAL NETHERLANDS............... 10,522,760
---------------
NORWAY (3.7%)
BANKING
74,000 Sparebanken NK 100*............. 1,251,439
---------------
INSURANCE
100,400 Vital Forsikring................ 852,562
---------------
OIL & RELATED
36,300 Smedvig Tankships*.............. 313,472
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REAL ESTATE
30,395 Havenlager*..................... $ 18,374
---------------
TEXTILES
5,650 Adelsten (B Shares)............. 1,219,775
---------------
TRANSPORTATION
30,395 Helikopter Service.............. 391,530
20,000 Storli AS....................... 310,881
20,000 Storli AS (B Shares)*........... 310,881
---------------
1,013,292
---------------
TOTAL NORWAY.................... 4,668,914
---------------
SPAIN (5.4%)
BUILDING & CONSTRUCTION
100,000 Uralita SA*..................... 1,155,454
---------------
ELECTRIC UTILITIES
26,800 Empresa Nac De Elec (ENDESA).... 1,201,976
167,000 Fuerzas Electricas De Catoluna,
Sec A......................... 1,146,340
---------------
2,348,316
---------------
FINANCIAL SERVICES
44 Banco Pastor SA (Registered).... 1,873
---------------
OIL & RELATED
15,200 Gas Natural SDG................. 1,195,895
74,000 Repsol SA....................... 2,120,715
---------------
3,316,610
---------------
TOTAL SPAIN..................... 6,822,253
---------------
SWEDEN (6.9%)
AUTOMOTIVE
90,000 Autoliv AB*..................... 2,023,287
---------------
BUSINESS SERVICES
190,000 Scribona AB (Series "B" Free)... 962,913
---------------
FOREST PRODUCTS, PAPER & PACKING
18,000 Mo Och Domsjoe*................. 706,396
---------------
INTERNATIONAL TRADE
76,290 Kinnevik Industriforvatnings (B
Shares)....................... 1,496,971
---------------
PHARMACEUTICAL
68,525 Astra AB (A Shares)............. 1,371,319
---------------
27,200 Hennes & Mauritz................ 1,325,467
---------------
STEEL
24,000 Ssab Svenskt Stal AB (Series "B"
Free)......................... 920,030
---------------
TOTAL SWEDEN.................... 8,806,383
---------------
SWITZERLAND (7.8%)
BANKING
421 Baer Holdings................... 440,015
11,400 Safra Republic Holdings S.A..... 961,702
---------------
1,401,717
---------------
BUSINESS SERVICES
520 Soc Gen Surveillance*........... 772,527
---------------
ELECTRIC EQUIPMENT
1,600 Sprecher & Schuh Hldgs AG....... 447,928
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
FINANCIAL SERVICES
830 Bil GT Gruppe................... $ 387,272
---------------
INDUSTRIALS
2,470 Hilti AG PTG Certs.............. 1,659,574
---------------
LEISURE
60 Reiseburo Kuoni................. 93,169
32 Reiseburo Kuoni (Bearer)........ 967,525
---------------
1,060,694
---------------
MANUFACTURING
4,150 Kardex (B Shares)............... 1,192,796
1,010 Schinder Holdings............... 1,229,041
---------------
2,421,837
---------------
PHARMACEUTICAL
54 Roche Holdings NPV (Warrants
5/12/94)*..................... 7,296
---------------
PUBLISHING
654 Edipresse S.A................... 253,886
---------------
RETAIL
5,500 Fust SA Dipl. Ing AG (Bearer)... 1,560,284
---------------
TOTAL SWITZERLAND............... 9,973,015
UNITED KINGDOM ( 33.4%)
AEROSPACE & DEFENSE
120,000 British Aerospace............... 843,782
180,000 Smiths Industries, PLC.......... 1,218,488
---------------
2,062,271
---------------
BANKING
175,000 Royal Bank of Scotland Group,
PLC........................... 1,130,672
270,000 TSB Group, PLC.................. 841,007
---------------
1,971,679
---------------
BUILDING & CONSTRUCTION
210,400 John Mowlem & Co., PLC.......... 330,926
150,000 Williams Holdings, PLC.......... 770,229
---------------
1,101,155
---------------
CONGLOMERATES
222,000 Harrison & Crosfield............ 557,988
---------------
CONSTRUCTION PLANT & EQUIPMENT
207,400 CRH, PLC........................ 1,016,998
---------------
ELECTRIC UTILITIES
75,000 Powergen, PLC................... 567,842
110,000 Scottish Power, PLC............. 605,543
---------------
1,173,385
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
92,307 Allied Lyons, PLC............... 782,856
250,000 Argyll Group, PLC............... 882,795
94,261 BAT Industries, PLC............. 578,495
122,000 Dalgety, PLC.................... 773,190
140,000 Grand Metropolitan, PLC......... 872,155
98,500 Tate & Lyle, PLC................ 618,180
81,000 Vendome Luxury Group Units*..... 544,573
---------------
5,052,244
---------------
FOREST PRODUCTS, PAPER & PACKING
50,500 De La Rue Co.................... 691,494
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
- --------------- ---------------
<C> <S> <C>
HEALTH & PERSONAL CARE
195,000 Smithkline Beecham.............. $ 1,088,498
---------------
INSURANCE
160,000 Britannic Assurance, PLC........ 912,864
90,718 Commercial Union Assurance Co.,
PLC........................... 703,632
275,000 Prudential Corp., PLC........... 1,204,302
119,000 Refuge Group.................... 477,095
235,000 Royal Insurance, PLC............ 891,430
250,000 Willis Corroon.................. 551,265
---------------
4,740,588
---------------
LEISURE
134,000 Granada Group, PLC.............. 1,026,941
---------------
METALS & MINING
145,000 Camas, PLC...................... 149,805
145,000 English China Clays............. 744,555
---------------
894,360
---------------
MULTI-INDUSTRY
434,159 BTR, PLC........................ 2,363,240
---------------
OIL & RELATED
495,000 British Petroleum Co., PLC...... 2,961,565
134,500 Enterprise Oil.................. 802,634
---------------
3,764,199
---------------
PHARMACEUTICAL
220,000 Glaxo Holdings, PLC............. 1,835,288
120,000 Reckitt & Colman, PLC........... 1,060,279
---------------
2,895,567
---------------
PUBLISHING
50,000 Daily Mail & General............ 697,755
115,000 Pearson, PLC.................... 1,033,834
---------------
1,731,589
---------------
REAL ESTATE
107,000 Hammerson Prop. Inv. & Dev.,
PLC........................... 557,680
94,500 MEPC, PLC....................... 610,563
---------------
---------------
RETAIL STORES
100,000 Great Universal Stores.......... 866,604
185,000 Kingfisher, PLC................. 1,417,792
240,000 Morrison Supermarkets........... 447,797
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
364,000 Next, PLC....................... $ 1,307,801
---------------
4,039,994
---------------
TELECOMMUNICATIONS
335,700 British Telecomm, PLC........... 1,899,770
---------------
TOBACCO
232,000 Rothmans International -
Units*........................ 1,287,878
---------------
TRANSPORTATION
200,000 British Airways, PLC............ 1,144,164
---------------
UTILITIES
130,000 Anglican Water, PLC............. 954,190
---------------
TOTAL UNITED KINGDOM............ 42,626,435
---------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS AND RIGHTS
(IDENTIFIED COST
$119,602,131)................. 121,370,071
---------------
PURCHASED PUT OPTIONS ON FOREIGN CURRENCY (0.0%)
<CAPTION>
CURRENCY AMOUNT EXPIRATION DATE/
(IN THOUSANDS) EXERCISE PRICE
- --------------- --------------------------------
<C> <S> <C>
BFr 51,375 July 94/BFr 34.9 (Identified
Cost $33,000)................ 750
---------------
<CAPTION>
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- ----------------
<C> <S> <C> <C>
COMMERCIAL PAPER(A)(3.1%)
UNITED STATES (3.1%)
AUTOMOTIVE FINANCE
$ 4,000 Ford Motor Credit Co. 4.10% due
7/1/94 (Amortized Cost
$4,000,000)..................... 4,000,000
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$123,635,431) (B)............... 98.3 % 125,370,821
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 1.7 2,216,991
---------- -------------
---------- -------------
---------- -------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
ADR - AMERICAN DEPOSITORY RECEIPT.
(A) COMMERCIAL PAPER WAS PURCHASED ON A DISCOUNT BASIS. THE RATE SHOWN HAS BEEN
ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $123,597,724; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $8,298,081 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $6,524,984, RESULTING IN NET UNREALIZED
APPRECIATION OF $1,773,097.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1994:
CONTRACTS TO IN DELIVERY UNREALIZED
RECEIVE EXCHANGE FOR DATE DEPRECIATION
------------- ------------- ------------ ------------
US$368,462 CHF494,071 7/05/94 $(385)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH PORTFOLIO
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Aerospace & Defense.................................................................. $ 2,062,270 1.6%
Automotive........................................................................... 8,685,040 6.8
Banking.............................................................................. 6,180,384 4.8
Building & Construction.............................................................. 2,256,609 1.8
Business Services.................................................................... 6,606,383 5.2
Chemicals............................................................................ 1,102,498 0.9
Conglomerates........................................................................ 557,988 0.4
Construction Plant & Equipment....................................................... 1,016,998 0.8
Electric Utilities................................................................... 5,320,952 4.2
Electrical Equipment................................................................. 1,190,875 0.9
Financial Services................................................................... 2,215,984 1.7
Food, Beverage, Tobacco & Household Products......................................... 11,928,214 9.4
Foreign Government Obligations (Put Options)......................................... 750 0.0
Forest Products, Paper & Packing..................................................... 1,397,890 1.1
Health & Personal Care............................................................... 1,088,495 0.9
Industrials.......................................................................... 1,659,574 1.3
Insurance............................................................................ 8,842,400 6.9
International Trade.................................................................. 1,496,971 1.2
Leisure.............................................................................. 2,087,635 1.6
Manufacturing........................................................................ 6,164,091 4.8
Metals & Mining...................................................................... 894,360 0.7
Multi-Industry....................................................................... 3,376,648 2.7
Oil & Related........................................................................ 8,436,470 6.6
Pharmaceuticals...................................................................... 5,606,912 4.4
Publishing........................................................................... 5,240,390 4.1
Real Estate.......................................................................... 1,186,617 0.9
Retail............................................................................... 4,921,895 3.9
Retail Stores........................................................................ 4,039,994 3.2
Steel................................................................................ 920,030 0.7
Telecommunications................................................................... 7,288,766 5.7
Textiles............................................................................. 2,822,209 2.2
Transportation....................................................................... 4,368,501 3.4
Utilities............................................................................ 954,190 0.8
-------------- ---
$ 125,370,821 98.3%
-------------- ---
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- -------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper..................................................................... $ 4,000,000 3.1%
Common Stocks........................................................................ 117,309,558 92.0
Preferred Stocks..................................................................... 4,053,132 3.2
Put Options.......................................................................... 750 0.0
Right................................................................................ 85 0.0
Warrants............................................................................. 7,296 0.0
-------------- ---
$ 125,370,821 98.3%
-------------- ---
-------------- ---
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (76.7%)
AUTO RELATED (1.1%)
30,000 Daimler Benz A G (ADR)............... $ 1,357,500
58,106 Nissan Motors Ltd.................... 1,016,855
---------------
2,374,355
---------------
BANKS (7.3%)
25,000 BankAmerica Corp..................... 1,143,750
70,000 Barnett Banks of Florida, Inc........ 3,062,500
90,000 First Bank System.................... 3,285,000
55,000 First Chicago Corp................... 2,646,875
32,000 First Interstate Bancorp............. 2,464,000
20,000 NationsBank Corp..................... 1,027,500
40,000 Signet Banking Corp.................. 1,615,000
15,244,625
---------------
BASIC CYCLICAL COMMODITIES (4.9%)
30,000 Cyprus Amax Minerals Co.............. 892,500
15,000 Dow Chemical Co...................... 980,625
25,000 duPont (E.I.) de Nemours & Co........ 1,459,375
25,000 Eastman Chemical Co.................. 1,193,750
17,000 Freeport-McMoran Copper.............. 378,250
47,000 Monsanto Co.......................... 3,554,375
33,000 Praxair, Inc......................... 643,500
38,000 Union Carbide Corp................... 1,016,500
---------------
10,118,875
---------------
BEVERAGES - SOFT DRINKS (0.7%)
30,000 Anheuser-Busch Cos., Inc............. 1,522,500
---------------
COMPUTER SOFTWARE (5.2%)
25,000 Computer Sciences Corp.*............. 1,040,625
70,000 General Motors Corp. (Class E)....... 2,441,250
50,000 Microsoft Corp.*..................... 2,575,000
66,000 Oracle Systems Corp.*................ 2,466,750
20,000 Powersoft Corp.*..................... 965,000
26,000 Sybase, Inc.*........................ 1,267,500
---------------
10,756,125
---------------
CONSUMER BUSINESS SERVICES (1.3%)
30,000 First Data Corp...................... 1,241,250
25,000 First Financial Management Corp...... 1,387,500
---------------
2,628,750
---------------
CONSUMER PRODUCTS (5.2%)
12,000 Buenos Aires Embolladora SA (ADR).... 370,500
35,000 ConAgra, Inc......................... 1,067,500
24,000 CPC International, Inc............... 1,158,000
20,000 Dial Corp. Arizona................... 855,000
20,000 Duracell International, Inc.......... 780,000
25,000 Gillette Co. (The)................... 1,628,125
18,500 Grupo Casa Autrey SA de CV (ADR)..... 492,563
40,000 Maybelline, Inc...................... 1,105,000
24,000 Pet, Inc............................. 447,000
30,000 Procter & Gamble Co.................. 1,601,250
25,000 Scott Paper Co....................... 1,306,250
10,811,188
---------------
DRUGS (3.2%)
30,000 Abbott Laboratories, Inc............. 870,000
27,000 Lilly (Eli) & Co..................... 1,535,625
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
35,000 Pfizer, Inc.......................... $ 2,209,375
30,000 Warner-Lambert Co.................... 1,980,000
---------------
6,595,000
---------------
ELECTRONICS (2.3%)
35,000 Analog Devices*...................... 1,006,250
24,000 International Business Machines
Corp............................... 1,410,000
26,000 Linear Technology Corp............... 1,137,500
14,000 Maxim Integrated Products, Inc.*..... 724,500
15,000 Microchip Technology, Inc.*.......... 528,750
---------------
4,807,000
---------------
ELECTRONICS - SEMICONDUCTORS/ COMPONENTS (3.2%)
13,000 Advanced Micro Devices, Inc.*........ 323,375
22,000 Intel Corp........................... 1,287,000
80,000 Micron Technology, Inc............... 2,760,000
30,000 Texas Instruments, Inc............... 2,385,000
---------------
6,755,375
---------------
ENERGY (5.0%)
17,000 Amoco Corp........................... 969,000
35,000 Apache Corp.......................... 966,875
20,800 British Petroleum PLC (ADR).......... 1,492,400
30,000 Chevron Corp......................... 1,256,250
25,000 Halliburton Co....................... 843,750
16,000 Landmark Graphics Corp............... 484,000
20,000 Royal Dutch Petroleum Co............. 2,092,500
20,000 Schlumberger, Ltd.................... 1,182,500
22,000 Seagull Energy Corp.*................ 569,250
25,000 Snyder Oil Corp...................... 478,157
---------------
10,334,682
---------------
FINANCIAL - MISCELLANEOUS (6.1%)
45,000 Crescent Real Estate Equitie*........ 1,215,000
21,000 Federal Home Loan Mortgage Corp...... 1,270,500
20,000 Federal National Mortgage
Association........................ 1,670,000
48,000 First U.S.A., Inc.................... 1,842,000
20,000 General Re Corp...................... 2,180,000
16,000 Marsh & McLennan Cos., Inc........... 1,334,000
70,000 MBNA Corp............................ 1,575,000
---------------
12,819,000
---------------
HEALTHCARE PRODUCTS & SERVICES (5.5%)
72,000 Columbia Healthcare Corp.*........... 2,700,000
3,000 Coventry Corp.*...................... 108,750
53,200 Genesis Health Ventures, Inc.*....... 1,349,950
45,000 Humana, Inc.*........................ 725,625
100,000 National Medical Enterprises, Inc.*.. 1,562,500
50,000 United Healthcare Corp.*............. 2,293,750
31,000 U.S. HealthCare, Inc................. 1,147,000
40,000 Value Health, Inc.*.................. 1,530,000
---------------
11,417,575
---------------
HOTELS / MOTELS (2.1%)
75,000 Hospitality Franchise System, Inc.*.. 1,837,500
54,000 La Quinta Inns, Inc.................. 1,410,750
40,000 Marriott International, Inc.......... 1,065,000
---------------
4,313,250
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
INDUSTRIALS (4.4%)
22,000 Emerson Electric Co.................. $ 1,251,250
39,600 Fluor Corp........................... 2,014,650
25,400 Foster Wheeler Corp.................. 923,925
74,700 Grupo Tribasa S A (ADR).............. 1,652,737
30,000 Titan Wheel International, Inc....... 723,750
10,000 United Technologies Corp............. 642,500
45,000 Wabash National Corp................. 2,013,750
---------------
---------------
MACHINERY (1.4%)
10,000 Caterpillar, Inc..................... 1,000,000
32,000 Clark Equipment Co.*................. 1,912,000
---------------
2,912,000
---------------
MEDIA GROUP (4.4%)
29,000 Capital Cities/ABC................... 2,062,625
37,500 Clear Channel Communications, Inc.*.. 1,410,938
47,500 Comcast Corp. (Class A).............. 849,062
19,250 Comcast Corp. (Class A Special)...... 344,094
28,000 Grupo Televisa SA de CV (GDS)........ 1,421,000
30,000 Infinity Broadcasting Corp.*......... 720,000
60,000 Telecommunications, Inc. (Class A)*.. 1,222,500
30,000 Turner Broadcasting Systems, Inc..... 521,250
47,000 United International Holdings,
Inc.*.............................. 622,750
2,000 Viacom, Inc. (Class C)*.............. 67,500
---------------
9,241,719
---------------
METALS (3.0%)
30,000 Alcan Aluminium, Ltd................. 682,500
10,000 Aluminum Co. of America.............. 731,250
75,000 Bethlehem Steel Corp.*............... 1,396,875
60,000 Inland Steel Industries, Inc.*....... 2,092,500
15,500 Nucor Corp........................... 1,061,750
13,000 Rouge Steel Co....................... 349,375
---------------
6,314,250
---------------
POLLUTION CONTROL (1.0%)
35,800 Browning-Ferris Industries, Inc...... 1,087,425
36,300 WMX Technologies, Inc................ 961,950
---------------
2,049,375
---------------
RETAIL - SPECIALTY (4.3%)
48,000 AnnTaylor Stores, Inc.*.............. 1,842,000
55,000 Callaway Golf Co..................... 2,145,000
3,000 Dayton-Hudson Corp................... 243,000
30,000 Gap (The), Inc....................... 1,282,500
40,000 Home Depot, Inc...................... 1,685,000
30,000 Kohl's Corp.*........................ 1,410,000
10,000 Talbots, Inc......................... 300,000
---------------
---------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.4%)
20,000 Applied Materials, Inc.*............. 850,000
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS (3.5%)
46,000 Ameritech Corp....................... $ 1,759,500
27,000 AT&T Corp............................ 1,468,125
30,000 Bellsouth Corp....................... 1,852,500
40,000 GTE Corp............................. 1,260,000
40,000 Tele Denmark, Inc. (ADR)............. 985,000
---------------
7,325,125
---------------
TRANSPORTATION (1.2%)
84,000 Southern Pacific Rail Corp.*......... 1,648,500
15,000 Wisconsin Central Transportation
Corp.*............................. 963,750
---------------
2,612,250
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$162,525,130)...................... 159,933,081
---------------
RIGHTS & WARRANTS (0.0%)
AUTO RELATED (0.0%)
20,000 Daimler Benz AG (Rights)*............ 8,750
---------------
BANKS (0.0%)
766 Chase Manhattan Corp. (Warrants
6/30/96)*.......................... 6,357
---------------
TOTAL RIGHTS & WARRANTS (IDENTIFIED
COST $3,830)....................... 15,107
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (21.7%)
COMMERCIAL PAPER(A) (7.7%)
AUTOMOTIVE FINANCE (2.9%)
$ 3,000 Ford Motor Credit Co. 4.15% due
7/4/94............................. 2,998,617
3,000 Ford Motor Credit Co. 4.15% due
7/6/94............................. 2,998,271
---------------
5,996,888
---------------
ELECTRIC - MAJOR (4.8%)
10,000 General Electric Corp. 4.30% due
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED
COST $15,975,388).................. 15,975,388
---------------
U.S. GOVERNMENT AGENCIES(A) (12.9%)
5,000 Federal National Mortgage Association
4.17% due 7/7/94................... 4,996,525
8,000 Federal National Mortgage Association
4.18% due 7/14/94.................. 7,987,924
14,000 Student Loan Marketing Association
4.20% due 7/12/94.................. 13,982,033
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $26,966,482)....... 26,966,482
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
REPURCHASE AGREEMENT (1.1%)
$ 2,261 The Bank of New York 6.00% due 7/1/94
(dated 6/30/94; proceeds
$2,261,103; collateralized by
$2,286,790 U.S. Treasury Note 6.50%
due 5/15/97 valued at $2,305,941)
(Identified Cost $2,260,726)....... $ 2,260,726
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $45,202,596)...... 45,202,596
---------------
<CAPTION>
VALUE
---------------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED COST
$207,731,556)(B)................. 98.4% $ 205,150,784
OTHER ASSETS IN EXCESS OF
LIABILITIES...................... 1.6 3,337,818
---------- -------------
NET ASSETS........................ 100.0% $ 208,488,602
---------- -------------
---------- -------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
ADR - AMERICAN DEPOSITORY RECEIPT.
GDS - GLOBAL DEPOSITORY SHARE.
(A) COMMERCIAL PAPER AND U.S. GOVERNMENT AGENCIES WERE PURCHASED ON A DISCOUNT
BASIS. THE INTEREST RATES SHOWN HAVE BEEN ADJUSTED TO REFLECT A BOND
EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $207,731,556; THE
GROSS UNREALIZED DEPRECIATION IS $7,802,157, RESULTING IN NET UNREALIZED
DEPRECIATION OF $2,580,772.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MANAGED ASSETS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------------
<C> <S> <C>
COMMON STOCKS (19.6%)
AEROSPACE & DEFENSE (1.1%)
28,300 Boeing Co......................... $ 1,308,875
20,100 Lockheed Corp..................... 1,314,038
27,100 Rockwell International Corp....... 1,012,862
------------------
3,635,775
------------------
ALUMINUM (0.8%)
16,100 Aluminum Co. of America........... 1,177,313
28,500 Reynolds Metals Co................ 1,368,000
------------------
2,545,313
------------------
AUTO RELATED (0.3%)
23,400 General Motors Corp............... 1,175,850
------------------
BANKING (0.7%)
26,600 BankAmerica Corp.................. 1,216,950
40,200 Keycorp........................... 1,281,375
------------------
2,498,325
------------------
BANKS - MONEY CENTER (0.4%)
20,000 Morgan (J.P.) & Co., Inc.......... 1,237,500
------------------
BASIC CYCLICAL COMMODITIES (0.3%)
18,500 Dow Chemical Co................... 1,209,437
------------------
BEVERAGES (0.3%)
23,000 Anheuser-Busch Cos., Inc.......... 1,167,250
------------------
CHEMICALS (0.8%)
35,300 Grace (W.R.) & Co................. 1,407,588
17,000 Monsanto Co....................... 1,285,625
------------------
2,693,213
------------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (0.4%)
33,400 Reuters Holdings PLC (ADR)........ 1,302,600
------------------
15,800 Hewlett-Packard Co................ 1,190,925
21,200 International Business Machines
Corp............................ 1,245,500
------------------
2,436,425
------------------
CONGLOMERATES (0.7%)
25,100 Minnesota Mining & Manufacturing
Co.............................. 1,242,450
26,600 Tenneco, Inc...................... 1,233,575
------------------
2,476,025
------------------
CONSUMER PRODUCTS (0.4%)
24,000 Kimberly-Clark Corp............... 1,269,000
------------------
DRUGS (2.2%)
41,800 Abbott Laboratories, Inc.......... 1,212,200
22,700 Bristol-Myers Squibb Co........... 1,217,287
63,900 Rite Aid Corp..................... 1,293,975
21,100 Schering-Plough Corp.............. 1,292,375
45,000 SmithKline Beecham PLC (ADR)...... 1,265,625
19,500 Warner-Lambert Co................. 1,287,000
------------------
7,568,462
------------------
ELECTRIC EQUIPMENT (0.7%)
20,500 Emerson Electric Co............... 1,165,938
95,200 Westinghouse Electric Corp........ 1,106,700
------------------
2,272,638
------------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------------
<C> <S> <C>
ENERGY RELATED (1.8%)
22,300 Amoco Corp........................ $ 1,271,100
17,000 British Petroleum PLC (ADR)....... 1,219,750
41,400 Enron Corp........................ 1,355,850
15,200 Mobil Corp........................ 1,240,700
11,200 Royal Dutch Petroleum Co.......... 1,171,800
------------------
6,259,200
------------------
FOODS (1.0%)
43,200 ConAgra, Inc...................... 1,317,600
24,000 CPC International, Inc............ 1,158,000
15,300 Quaker Oats Co. (The)............. 1,069,087
3,544,687
------------------
INDUSTRIALS (0.4%)
19,400 United Technologies Corp.......... 1,246,450
------------------
INSURANCE (0.3%)
15,700 Chubb Corp........................ 1,203,012
------------------
MACHINERY (0.3%)
17,500 Deere & Co........................ 1,183,437
------------------
MANUFACTURERS (0.3%)
22,500 Whirlpool Corp.................... 1,181,250
------------------
METALS - MISCELLANEOUS (0.4%)
21,600 Phelps Dodge Corp................. 1,231,200
------------------
OIL INTEGRATED - INTERNATIONAL (0.4%)
22,000 Exxon Corp........................ 1,245,750
------------------
PAPER (0.7%)
54,700 Boise Cascade Corp................ 1,210,238
19,400 International Paper Co............ 1,285,250
------------------
2,495,488
------------------
PHOTOGRAPHY (0.4%)
27,400 Eastman Kodak Co.................. 1,318,625
------------------
RAILROADS (0.7%)
23,200 Burlington Northern, Inc.......... 1,238,300
17,300 CSX Corp.......................... 1,306,150
------------------
2,544,450
------------------
RECREATION (0.3%)
51,600 Brunswick Corp.................... 1,135,200
------------------
RETAIL (0.7%)
15,700 Dayton-Hudson Corp................ 1,271,700
81,200 K-Mart Corp....................... 1,258,600
------------------
2,530,300
------------------
RETAIL - FOOD CHAINS (0.3%)
51,800 Great Atlantic & Pacific Tea,
Inc............................. 1,113,700
------------------
TELECOMMUNICATIONS (1.4%)
22,900 AT&T Corp......................... 1,245,188
38,800 GTE Corp.......................... 1,222,200
32,900 Sprint Corp....................... 1,147,387
------------------
4,942,213
------------------
UTILITIES - ELECTRIC (0.4%)
42,000 FPL Group, Inc.................... 1,254,750
------------------
TOTAL COMMON STOCKS (IDENTIFIED
COST $66,687,710)............... 67,917,525
------------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MANAGED ASSETS
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- -------- ---------------
<C> <S> <C> <C> <C>
CORPORATE & FOREIGN GOVERNMENT BONDS (1.7%)
AIRLINES (0.1%)
$ 500 Delta Airlines,
Inc............ 9.75 % 5/15/21 $ 463,425
---------------
ELECTRIC UTILITIES (0.3%)
1,000 Niagara Mohawk
Power Corp..... 7.875 4/ 1/24 881,880
---------------
FOREIGN GOVERNMENT (0.3%)
1,250 Repubic of
Italy.......... 6.875 9/27/23 1,030,613
---------------
HOSPITAL MANAGEMENT (0.3%)
1,265 Columbia
Healthcare
Corp........... 7.50 12/15/23 1,106,976
---------------
INDUSTRIALS (0.3%)
1,000 Occidental
Petroleum
Corp........... 8.75 1/15/23 978,410
---------------
TELECOMMUNICATIONS (0.4%)
1,500 Southern
California
Edison Co...... 8.875 5/ 1/23 1,514,655
---------------
TOTAL CORPORATE & FOREIGN GOVERNMENT
BONDS (IDENTIFIED COST $6,625,891).... 5,975,959
---------------
U.S. GOVERNMENT AGENCIES & OBLIGATIONS (4.1%)
1,254 Government
National
Mortgage
Association.... 7.50 12/15/23 1,195,679
764 Government
National
Mortgage
Association.... 7.00 4/15/24 703,509
4,550 U.S. Treasury
Bond........... 8.125 8/15/19 4,733,422
Bond........... 7.25 8/15/22 4,753,125
2,000 U.S. Treasury
Bond........... 7.125 2/15/23 1,873,437
1,000 U.S. Treasury
Note........... 5.75 8/15/03 895,000
---------------
TOTAL U.S. GOVERNMENT AGENCIES &
OBLIGATIONS (IDENTIFIED COST
$14,989,005).......................... 14,154,172
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (74.7%)
U.S. GOVERNMENT AGENCIES (A) (74.2%)
$ 34,000 Federal Home Loan Banks 4.206% due
7/19/94............................ $ 33,928,770
32,000 Federal Home Loan Mortgage Corp.
4.272% due 7/ 1/94................. 32,000,000
13,000 Federal Home Loan Mortgage Corp.
4.184% due 7/ 6/94................. 12,992,471
35,000 Federal Home Loan Mortgage Corp.
4.195% due 7/13/94................. 34,951,233
18,000 Federal Home Loan Mortgage Corp.
4.261% due 7/21/94................. 17,957,500
18,000 Federal Home Loan Mortgage Corp.
4.236% due 7/25/94................. 17,949,360
29,000 Federal National Mortgage Association
4.196% due 7/15/94................. 28,952,859
39,000 Federal National Mortgage Association
4.246% due 7/22/94................. 38,903,768
40,000 Federal National Mortgage Association
4.266% due 7/28/94................. 39,872,500
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $257,508,461)...... 257,508,461
---------------
REPURCHASE AGREEMENT (0.5%)
1,723 The Bank of New York 6.00% due 7/1/94
(dated 6/30/94; proceeds
$1,723,424; collateralized by
$1,743,005 U.S. Treasury Note 6.50%
due 5/15/97 valued at $1,757,600)
(Identified Cost $1,723,137)....... 1,723,137
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $259,231,598)..... 259,231,598
---------------
TOTAL INVESTMENTS (IDENTIFIED COST
$347,534,204)(B)................ 100.1 % 347,279,254
LIABILITIES IN EXCESS OF OTHER
ASSETS.......................... (0.1) (189,864)
NET ASSETS........................ 100.0 % $ 347,089,390
---------- -------------
---------- -------------
<FN>
- ------------------
ADR - AMERICAN DEPOSITORY RECEIPT.
(A) U.S. GOVERNMENT AGENCIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST
RATES SHOWN HAVE BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $347,534,204; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,727,538 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $3,982,488, RESULTING IN NET UNREALIZED
DEPRECIATION OF $254,950.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (99.6%)
AUSTRALIA (1.4%)
BUILDING & CONSTRUCTION
485,000 Pioneer International, Ltd............ $ 1,015,773
-------------
CANADA (3.0%)
TELECOMMUNICATIONS
63,500 BCE, Inc.............................. 2,071,403
-------------
FRANCE (7.8%)
FINANCIAL SERVICES
2,675 Societe Eurafrance.................... 956,214
-------------
FOOD & BEVERAGES
5,900 Eridania Beghin - Say................. 927,629
-------------
INTERNATIONAL OIL - INTEGRATED
15,500 Compagnie Francaise de Petroleum Total
(B Shares).......................... 889,686
-------------
MULTI - INDUSTRY
4,380 Compagnie Generalo D'Industrie et de
Participations...................... 873,835
19,092 Worms et Compagnie.................... 964,472
-------------
1,838,307
-------------
OIL RELATED
5,050 Esso Ste Anonyme Francaise............ 884,570
-------------
TOTAL FRANCE.......................... 5,496,406
-------------
GERMANY (7.6%)
CHEMICALS
3,500 Bayer AG.............................. 756,810
-------------
HEALTH & PERSONAL CARE
-------------
MULTI - INDUSTRY
2,770 Viag AG............................... 806,729
-------------
OFFICE EQUIPMENT
3,550 Herlitz AG............................ 808,844
-------------
RETAIL - DEPARTMENT STORES
2,100 Karstadt AG........................... 751,977
-------------
TEXTILES - APPAREL
1,450 Hugo Boss AG (Preferred).............. 742,656
-------------
UTILITIES - ELECTRIC
2,475 Veba AG............................... 774,408
-------------
TOTAL GERMANY......................... 5,348,272
-------------
HONG KONG (3.0%)
BANKING
97,600 HSBC Holdings......................... 1,067,046
-------------
UTILITIES - ELECTRIC
343,000 Hong Kong Electric Holdings........... 1,034,015
-------------
TOTAL HONG KONG....................... 2,101,061
-------------
ITALY (2.7%)
BANKING
300,000 Banco Ambroveneto..................... 826,823
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
TELECOMMUNICATIONS
528,000 Societa Italiana per L'Eserrcizio
delle Telecommunicazioni............ $ 1,085,324
-------------
TOTAL ITALY........................... 1,912,147
-------------
JAPAN (24.5%)
AUTOMOTIVE
129,000 Toyota Motor Corp..................... 2,881,443
-------------
BUILDING & CONSTRUCTION
455,000 Fujita Corp........................... 2,888,013
-------------
ELECTRONICS
47,500 Sony Corp............................. 2,904,538
59,000 TDK Corp.............................. 2,916,010
-------------
5,820,548
-------------
FOOD & BEVERAGES
140,000 House Food Industrial................. 2,900,748
-------------
447,000 Furukawa Co., Ltd..................... 2,814,645
-------------
TOTAL JAPAN........................... 17,305,397
-------------
MALAYSIA (2.0%)
BUILDING & CONSTRUCTION
232,000 Cement Industries of Malaysia......... 695,385
-------------
CONGLOMERATES
274,000 Sime Darby Berhad..................... 694,924
-------------
TOTAL MALAYSIA........................ 1,390,309
-------------
NETHERLANDS (2.9%)
BUILDING & CONSTRUCTION
21,900 Volker Stevin......................... 1,057,681
-------------
INSURANCE
26,000 Amev, NV.............................. 1,022,889
-------------
TOTAL NETHERLANDS..................... 2,080,570
-------------
SWITZERLAND (4.0%)
BANKING
4,850 Schweizerischer Bankverein Inhaber.... 1,426,577
-------------
MULTI - INDUSTRY
1,600 Brown Boveri & Compagnie AG........... 1,402,314
-------------
TOTAL SWITZERLAND..................... 2,828,891
-------------
UNITED KINGDOM (12.7%)
BREWERS
165,500 Bass PLC (Ord.)....................... 1,282,385
-------------
FOOD & BEVERAGES
600,000 Hazlewood Food PLC.................... 1,230,516
-------------
MULTI - INDUSTRY
330,000 Hanson Trust PLC...................... 1,223,808
-------------
NATURAL GAS
314,000 British Gas PLC....................... 1,297,624
-------------
RETAIL - MERCHANDISING
387,800 Tesco................................. 1,336,502
-------------
TELECOMMUNICATIONS
227,500 British Telecom PLC................... 1,289,208
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
UTILITIES - WATER
149,500 Welsh Water........................... $ 1,329,000
-------------
TOTAL UNITED KINGDOM.................. 8,989,043
-------------
UNITED STATES (28.0%)
BANKING
85,600 BankAmerica Corp...................... 3,916,200
-------------
HEALTH & PERSONAL CARE
74,500 Bristol-Myers Squibb Co............... 3,995,063
-------------
INTERNATIONAL OIL - INTEGRATED
96,000 Chevron Corp.......................... 4,020,000
-------------
TOBACCO
77,500 Philip Morris Cos., Inc............... 3,991,250
-------------
UTILITIES - ELECTRIC
165,000 Pacific Gas & Electric Co............. 3,918,750
-------------
TOTAL UNITED STATES................... 19,841,263
-------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $70,223,679)....... 70,380,535
-------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -------------
<C> <S> <C>
SHORT-TERM INVESTMENT (4.8%)
U.S. GOVERNMENT AGENCY (A)(4.8%)
$ 3,420 Federal National Mortgage Association
4.10% due 7/1/94 (Amortized Cost
$3,420,000)......................... $ 3,420,000
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$73,643,679)(B).................. 104.4 % 73,800,535
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS..................... (4.4) (3,132,186)
---------- ------------
NET ASSETS......................... 100.0 % $ 70,668,349
---------- ------------
---------- ------------
<FN>
- ------------------
(A) U.S. GOVERNMENT AGENCY WAS PURCHASED ON A DISCOUNT BASIS. THE RATE SHOWN
HAS BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $73,643,679; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,970,347 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $1,813,491, RESULTING IN NET UNREALIZED
APPRECIATION OF $156,856.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1994:
<TABLE>
<CAPTION>
IZED APPRECI-
DELIVERY ATION/(DEPRE-
CONTRACTS TO RECEIVE IN EXCHANGE FOR DATE CIATION)
- ------------------------ ---------------------- --------- -------------
<S> <C> <C> <C> <C> <C>
DEM 234,090 US$ 148,770 07/01/94 $ (1,840)
DEM 386,385 US$ 243,930 07/01/94 (1,409)
Y 30,519,734 US$ 308,654 07/01/94 (187)
Y 7,576,134 US$ 76,488 07/01/94 85
MYR 223,826 US$ 86,519 07/01/94 (509)
NLG 110,877 US$ 62,873 07/01/94 (823)
CHF 87,942 US$ 65,993 07/04/94 (340)
US$ 1,826,570 Y 18,469 07/05/94 7
L 52,167 US$ 80,597 07/11/94 (157)
L 246,720 US$ 378,838 07/11/94 1,604
L 121,851 US$ 187,333 07/11/94 561
L 124,304 US$ 192,074 07/11/94 (398)
L 130,410 US$ 203,244 07/11/94 (2,152)
L 132,424 US$ 204,966 07/11/94 (768)
MYR 182,462 US$ 70,210 07/11/94 (94)
FRF 289,082 US$ 53,539 07/29/94 (627)
US$ 161,889,364 ITL 100,390 07/29/94 (1,780)
US$ 156,783,234 ITL 99,571 07/29/94 623
US$ 28,885,137 ITL 18,282 07/29/94 52
ITL 85,924,173 US$ 54,264 07/29/94 (36)
ITL 217,943,141 US$ 139,842 07/29/94 (2,295)
ITL 222,103,150 US$ 141,589 07/29/94 (1,416)
ITL 451,137,360 US$ 286,164 07/29/94 (1,445)
ITL 221,902,952 US$ 140,445 07/29/94 (399)
-------------
Net Unrealized Depreciation*........................... $ (13,743)
-------------
-------------
</TABLE>
* INCLUDES AGGREGATE GROSS UNREALIZED APPRECIATION OF $2,932 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $16,675, RESULTING IN NET UNREALIZED DEPRECIATION
OF $13,743.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------------------------------------------------- ------------- -----------
<S> <C> <C>
Automotive............................................................................. $ 2,881,443 4.1%
Banking................................................................................ 7,236,646 10.2
Brewers................................................................................ 1,282,385 1.8
Building & Construction................................................................ 5,656,852 8.0
Chemicals.............................................................................. 756,810 1.1
Conglomerates.......................................................................... 694,924 1.0
Electronics............................................................................ 5,820,548 8.2
Financial Services..................................................................... 956,214 1.4
Foods & Beverages...................................................................... 5,058,893 7.2
Health & Personal Care................................................................. 4,701,911 6.7
Insurance.............................................................................. 1,022,889 1.4
International Oil (Integrated)......................................................... 4,909,686 6.9
Multi - Industry....................................................................... 8,085,803 11.4
Natural Gas............................................................................ 1,297,624 1.8
Office Equipment....................................................................... 808,844 1.1
Oil Related............................................................................ 884,570 1.3
Retail - Department Stores............................................................. 751,977 1.1
Retail - Merchandising................................................................. 1,336,502 1.9
Telecommunications..................................................................... 4,445,935 6.3
Textiles (Apparel)..................................................................... 742,656 1.1
Tobacco................................................................................ 3,991,250 5.6
Utilities - Electric................................................................... 5,727,173 8.1
Utilities - Water...................................................................... 1,329,000 1.9
------------- -----
$ 73,800,535 104.4%
------------- -----
------------- -----
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks.......................................................................... $ 69,637,879 98.5%
Preferred Stocks....................................................................... 742,656 1.1
Short-Term Investment.................................................................. 3,420,000 4.8
------------- -----
$ 73,800,535 104.4%
------------- -----
------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
COMMON STOCKS, RIGHTS AND BONDS (93.7%)
AUSTRALIA (2.3%)
BANKING
65,000 Australia & New Zealand Banking
Group, Ltd...................... $ 191,350
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
165,000 Fosters Brewing Group............. 128,079
-------------
METALS & MINING
16,000 Broken Hill Proprietary Co.,
Ltd............................. 210,668
-------------
OIL RELATED
50,000 Woodside Petroleum, Ltd........... 168,429
-------------
307,566
-------------
TRANSPORTATION
14,500 Brambles Industries, Ltd.......... 138,463
-------------
TOTAL AUSTRALIA................... 976,126
-------------
HONG KONG (18.4%)
BANKING
120,000 Dao Heng Bank Group............... 343,123
100,000 Guoco Group....................... 426,963
30,000 Hang Seng Bank, Ltd............... 197,956
29,800 Hong Kong & Shanghai Bank
Holdings, PLC................... 325,799
-------------
1,293,841
-------------
COMPUTER SERVICES
260,000 Hanny Magnetics Holdings, Ltd..... 70,643
-------------
CONGLOMERATES
180,000 Citic Pacific, Ltd................ 486,738
165,000 Hutchison Whampoa, Ltd............ 677,804
45,200 Jardine Matheson Holdings, Ltd.... 347,962
80,000 Swire Pacific, Ltd. (A Shares).... 574,460
-------------
2,086,964
-------------
ELECTRIC UTILITIES
51,000 China Light & Power............... 260,642
100,000 Consolidated Electric Power....... 160,435
90,000 Hong Kong Electric Holdings,
Ltd............................. 271,316
-------------
692,393
-------------
LEISURE
500,000 CDL Hotels International, Ltd..... 173,050
125,000 Hong Kong & Shanghai Hotels,
Ltd............................. 192,457
800,000 Regal Hotels International........ 199,767
-------------
565,274
-------------
MANUFACTURING
332,000 Singamas Container Holdings....... 98,796
-------------
MISCELLANEOUS
450,000 Yizheng Chemical Fibre Co......... 112,368
REAL ESTATE
120,000 Cheung Kong Holdings, Ltd......... 524,001
500,000 Great Eagle Holdings Co........... 279,791
30,000 Henderson Land Development........ 140,704
70,000 Hong Kong Land Holdings, Ltd...... 176,608
105,000 Sun Hung Kai Properties, Ltd...... 604,541
46,000 Wharf Holdings.................... 169,621
-------------
1,895,266
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
RETAIL STORES
300,000 Dickson Concepts International.... $ 185,341
-------------
TELECOMMUNICATIONS
380,000 Champion Technology Holdings,
Ltd............................. 135,205
300,200 Hong Kong Telecommunications,
Ltd............................. 567,075
600,000 S. Megga International Holdings,
Ltd............................. 121,879
-------------
824,159
-------------
TOTAL HONG KONG................... 7,825,045
-------------
INDONESIA (4.8%)
BANKING
120,000 PT Bank International Indonesia... 380,237
-------------
BUILDING & CONSTRUCTION
4,000 PT Semen Gresik................... 17,514
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
28,000 PT Hanjaya Mandala Sampoerna...... 212,933
US$ 150 M PT Indofoods Sukes 3.5% due 4/6/97
(Conv.)......................... 157,501
63,400 PT Sinar Mas Argo Research &
Technology Corp................. 90,584
-------------
461,018
-------------
FOREST PRODUCTS, PAPER & PACKAGING
70,000 Pab K Tjiwi Kimia................. 170,991
45,000 PT Barito Pacific Timber.......... 169,033
170,000 PT Indah Kiat Paper Co............ 235,056
70,000 PT Indah Kiat Plup & Paper Co..... 96,788
-------------
-------------
MANUFACTURING
60,000 PT Gadjah Tunggal................. 99,553
50,000 PT United Tractors................ 104,853
-------------
204,406
-------------
METALS & MINING
40,000 PT Kabelmetal Indonesia........... 58,994
-------------
REAL ESTATE
6,000 Modernland Realty Ltd............. 21,570
80,000 PT Dharmala International......... 119,832
40,000 PT Dharmala International
(Rights)........................ 13,827
-------------
155,229
-------------
TEXTILES
50,000 Inti Indorayon.................... 115,223
-------------
TOTAL INDONESIA................... 2,064,489
-------------
JAPAN (24.2%)
APPAREL
Y 4,000 M Goldwin Inc. 2.8% due 3/31/97
(Conv.)......................... 47,908
-------------
AUTOMOTIVE
970 Autobacs Seven Co................. 133,333
Y 12,000 M Toyota Motor Corp. 1.29% due
1/28/98 (Conv.)................. 141,540
-------------
274,873
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
BANKING
US$ 100M Bank of Toyko 3.375% due 3/31/04
(Conv.)......................... $ 113,000
5,000 Dai-Ichi Kangyo Bank.............. 99,050
10,000 Mitsui Trust & Banking............ 123,307
7,000 Shizuoka Bank, Ltd................ 95,512
5,000 Sumitomo Bank, Ltd................ 109,662
7,000 Sumitomo Trust & Banking.......... 115,322
-------------
655,853
BUILDING & CONSTRUCTION
1,000 Higashi Nihon House............... 44,067
2,000 Hosoda Corp....................... 38,205
3,000 Kaneshita Construction............ 50,030
1,000 Maezawa Kasei Industries.......... 68,729
4,000 Raito Kogyo Co.................... 101,880
2,000 Sankyo Frontier Co., Ltd.......... 83,283
6,000 Sumitomo Forestry................. 121,286
5,000 Takada Kiko Steel................. 58,621
4,000 Takashimaya Kosakusho............. 53,366
1,000 Yokogawa Construction Co.......... 25,773
-------------
645,240
-------------
BUSINESS SERVICES
4,000 Ichiken Co., Ltd.................. 63,069
1,000 Nippon Kanzai Co.................. 56,600
Y 4,000M Nissen Co., Ltd. 1.9% due 6/20/00
(Conv.)......................... 50,334
1,000 Nissin Co., Ltd................... 79,543
Y 5,000M Rinnai Corp. 1.8% due 9/30/98
(Conv.)......................... 58,824
3,000 Tanseisha Co...................... 54,579
-------------
362,949
-------------
CHEMICALS
22,000 Mitsubishi Kasei Corp............. 116,737
4,000 Shin-Etsu Chemical Co............. 85,304
3,000 Shinto Paint Co................... 57,611
-------------
259,652
-------------
COMPUTER SERVICES
2,000 Enix Corp......................... 104,103
8,000 Nippon Comsys Co.................. 125,328
2,000 Sumiya Co......................... 44,067
-------------
273,498
-------------
COMPUTERS
11,000 Fujitsu, Ltd...................... 125,632
2,000 Japan Digital Laboratory Co.,
Ltd............................. 68,930
2,000 Tecmo............................. 46,695
1,000 TKC Corp.......................... 37,902
-------------
279,159
CONGLOMERATES
6,000 Takada Corp....................... 47,908
-------------
ELECTRIC UTILITIES
4,300 Hokkaido Electric Power........... 109,086
-------------
ELECTRONICS
4,000 Aiwa Co........................... 109,561
3,000 Canon, Inc........................ 52,456
Y 4,000M Canon, Inc. 1.0% due 12/20/02
(Conv.)......................... 47,706
11,000 Hitachi, Ltd...................... 114,514
2,000 Kyocera Corp...................... 148,979
1,600 Mabuchi Motor Co.................. 120,639
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
2,000 Murata Manufacturing Co., Ltd..... $ 93,794
2,000 Nihon Dempa Kogyo................. 70,750
2,000 Sanshin Corp...................... 41,237
2,000 Secom Co.......................... 138,468
6,000 Sharp Corp........................ 108,551
1,800 Sony Corporation.................. 110,067
Y 10,000M Tokyo Electron Ltd. 0.9% due
9/30/03 (Conv.)................. 110,674
-------------
1,267,396
-------------
ENGINEERING & CONSTRUCTION
2,000 Meiden Engineering Co............. 43,056
-------------
ENVIRONMENTAL CONTROL
5,000 Suido Kiko Kaisha................. 78,836
-------------
FINANCIAL SERVICES
6,000 Daiwa Securities.................. 104,912
1,000 Nichiei Co., Ltd. (Kyoto)......... 88,437
2,000 Promise Co., Ltd.................. 123,711
-------------
317,060
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
2,000 Aiya Co., Ltd..................... 58,015
2,000 Amway Japan, Ltd.................. 77,219
2,000 Art Life Co....................... 49,323
1,000 Beltecno Corp..................... 40,631
6,000 Nippon Meat Packers............... 92,177
1,000 Plenus Co., Ltd................... 78,836
1,000 Skylark Co........................ 22,135
3,000 Stamina Foods, Inc................ 69,739
5,000 Steak Miya Co..................... 81,868
20 Yoshinoya D & C Co., Ltd.......... 33,556
-------------
635,438
-------------
HEALTH & PERSONAL CARE
2,000 Hitachi Medical Corp.............. 46,493
2,000 Kawasumi Laboratories, Inc........ 51,142
2,000 Ono Pharmaceutical................ 102,486
2,000 Santen Pharmaceutical Co.......... 47,504
1,000 Seikagaku Corp.................... 49,626
2,000 Uni Charm Corp.................... 59,430
-------------
356,681
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
2,000 Noritz Corp....................... 47,706
-------------
INSURANCE
8,000 Tokio Marine & Fire Insurance..... 102,688
12,000 Yasuda Fire & Marine Insurance.... 98,241
-------------
200,929
-------------
MACHINERY
3,000 Comson Corp....................... 63,372
200 DMW Corp.......................... 34,364
2,000 Fanuc, Ltd........................ 95,816
2,000 Fuji Machine Manufacturing Co..... 71,559
3,000 Fuso Lexel, Inc................... 50,940
8,000 Maeda Metal Industries............ 34,769
15,000 Minebea Co........................ 129,472
14,000 Mitsubishi Heavy Industries,
Ltd............................. 111,643
2,000 Sankyo Engineering................ 70,750
3,000 Sansei Yusoki Co., Ltd............ 57,004
3,100 THK Co............................ 90,863
-------------
810,552
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
MACHINERY-DIVERSIFIED
1,000 Keyence Corp...................... $ 119,264
-------------
MANUFACTURING
2,000 Arc Land Sakamoto................. 52,962
2,000 Catena Corp....................... 65,090
28,000 Kawasaki Steel Corp............... 118,294
2,000 Nichiha........................... 45,684
5,000 Nippon Electric Glass Co.......... 109,662
15,000 Nippon Light Metal Co............. 109,005
7,000 Takara Standard Co................ 89,852
4,000 Tokyo Steel Manufacturing......... 105,114
-------------
695,663
-------------
MISCELLANEOUS
2,000 Yagi Corp......................... 62,664
1,000 Yonkyu Co., Ltd................... 40,530
-------------
103,194
-------------
MULTI-INDUSTRY
2,000 Trusco Nakayama Corp.............. 45,887
-------------
NATURAL GAS
20,000 Tokyo Gas Co., Ltd................ 101,072
-------------
OIL RELATED
10,000 General Sekiyu.................... 116,233
-------------
PHARMACEUTICAL
3,000 Eisai Co., Ltd.................... 52,153
SFr 50M Kuraya Corporation 0.5% due
3/31/98 (Conv.)................. 37,047
-------------
89,200
-------------
PHOTOGRAPHY
4,000 Fuji P.S. Corp.................... 52,557
-------------
REAL ESTATE
3,000 Chubu Sekiwa Real Estate.......... 52,153
3,000 Kansai Sekiwa Real Estate......... 67,314
9,000 Mitsui Fudosan Co................. 109,157
4,000 Sekiwa Real Estate................ 60,643
4,000 Tohoku Misawa Homes Co............ 50,940
-------------
340,207
-------------
RETAIL STORES
2,000 Aoyama Trading Co................. 78,027
Y 9,000M Izumi Co., Ltd. 1.7% due 8/30/02
(Conv.)......................... 122,892
6,000 Juntendo Co....................... 66,101
1,000 Kahma Co., Ltd.................... 36,790
3,000 Kojitu Co., Ltd................... 54,275
1,000 Nitori Co......................... 45,482
Y 5,000M Olympic Sports Co. 1.75% due
9/30/97 (Conv.)................. 46,871
2,000 Senshukai Co...................... 69,739
2,000 Shimachu Co., Ltd................. 80,251
Y 6,000M Tasaki Shinju Co., Ltd. 1.7% due
10/31/00 (Conv.)................ 74,166
1,000 Tsutsumi Jewelry.................. 114,211
2,000 Xebio Co.......................... 88,134
1,000 Yukiguni Maitake Co., Ltd......... 35,981
-------------
953,349
-------------
TELECOMMUNICATIONS
4,000 C Cube Corp....................... 61,856
20 DDI Corp.......................... 190,418
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
800 KDD............................... $ 97,837
3,000 Nippon Computer System Co......... 51,243
5,000 Takamisawa Electric Co............ 65,191
2,000 Uniden Corp....................... 66,707
-------------
533,252
-------------
TEXTILES
9,000 Kuraray Co........................ 110,976
-------------
TRANSPORTATION
3,000 Chuo Warehouse Co................. 50,637
24 East Japan Railway................ 122,498
9,000 Kamigumi Co....................... 106,428
1,000 Kanto Seino Transportation........ 44,471
-------------
324,034
-------------
TOTAL JAPAN....................... 10,298,668
-------------
MALAYSIA (13.8%)
AUTOMOTIVE
50,000 Edaran Otomobil Nasional.......... 313,185
-------------
BANKING
40,000 Public Bank Berhad................ 75,318
260,000 Public Bank Berhad (CLOB)......... 494,491
-------------
1,018,643
-------------
BUILDING & CONSTRUCTION
70,000 Hume Industries Berhad............ 254,197
120,000 Kedah Cement Holdings Berhad...... 163,240
50,000 Land & General Berhad............. 167,160
60,000 Metacorp Berhad................... 214,426
60,000 United Engineers Berhad........... 242,094
-------------
1,041,117
-------------
CONGLOMERATES
100,000 Dunlop Estates Berhad............. 263,229
200,000 Renong Berhad..................... 242,862
-------------
506,091
-------------
ELECTRIC UTILITIES
23,000 Tenaga Nasional Berhad............ 129,040
-------------
ELECTRONICS
25,000 Technology Resource Industries
Berhad.......................... 101,833
-------------
ENTERTAINMENT
45,000 Genting Berhad.................... 536,064
-------------
FINANCIAL SERVICES
47,000 Hong Leong Credit Berhad.......... 243,822
120,000 Rashid Hussain Berhad............. 235,177
-------------
478,999
-------------
FOREST PRODUCTS, PAPER & PACKAGING
25,000 Aokam Perdana Berhad.............. 157,553
-------------
LEISURE
350,000 Republic Hotels................... 564,664
-------------
MANUFACTURING
30,000 Kuala Lumpur Kepong Berhad........ 69,746
100,000 Malayawata Steel Berhad........... 166,007
45,000 O.Y.L. Industries Berhad.......... 268,032
-------------
503,785
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
MULTI-INDUSTRY
60,000 Time Engineering Berhad........... $ 140,645
-------------
TELECOMMUNICATIONS
50,000 Telekom Malaysia.................. 372,747
-------------
TOTAL MALAYSIA.................... 5,864,366
-------------
PHILIPPINES (2.4%)
BANKING
10,000 Philippine National Bank.......... 162,313
-------------
ELECTRIC UTILITIES
15,000 Manila Electric Co. (B Shares).... 188,899
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
55,000 San Miguel Corp. (B Shares)....... 277,052
-------------
REAL ESTATE
750,000 Filinvest Land, Inc............... 173,508
-------------
TELECOMMUNICATIONS
4,000 Philippine Long Distance
Telephone....................... 242,000
-------------
TOTAL PHILIPPINES................. 1,043,772
-------------
SINGAPORE (10.2%)
BANKING
42,000 Development Bank of Singapore,
Ltd............................. 402,151
44,000 United Overseas Bank Corp., Ltd... 352,046
-------------
754,197
-------------
COMPUTER SERVICES
220,000 IPC Corp.......................... 201,994
-------------
ELECTRONICS
24,000 Creative Technology............... 414,000
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
30,000 Fraser & Neave, Ltd............... 330,535
-------------
LEISURE
200,000 Marco Polo Developments, Ltd...... 282,004
50,000 Overseas Union Enterprise......... 280,365
-------------
562,369
-------------
45,000 Van Der Horst..................... 193,304
-------------
METALS & MINING
43,750 Natsteel, Ltd..................... 92,389
-------------
REAL ESTATE
13,000 Bukit Sembawang Estates........... 234,457
90,000 City Developments, Ltd............ 380,706
14,000 City Developments, Ltd. (Rights).. 32,595
100,000 DBS Land.......................... 288,562
-------------
936,320
-------------
SHIPBUILDING
50,000 Far East Levingston............... 193,468
30,000 Jurong Shipyard, Ltd.............. 265,609
51,000 Sembawang Maritime................ 197,337
30,000 Sembawang Shipyard, Ltd........... 216,422
-------------
872,836
-------------
TOTAL SINGAPORE................... 4,357,944
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
SOUTH KOREA (5.4%)
AUTOMOBILES
10,000 Hyundai Motor Co., Ltd. (GDR)..... $ 290,000
10,000 Kai Motors Corp. (GDS)............ 270,000
-------------
560,000
-------------
ELECTRONICS
US$ 100M Daewoo Electronics Co. 3.5% due
12/31/07 (Conv.)................ 183,000
8,000 Samsung Electronics (GDS)......... 469,000
-------------
652,000
-------------
MULTI-INDUSTRY
SFr 100M Daewoo Corp. 3.25% due 12/31/97
(Conv.)......................... 108,249
US$ 120M Daewoo Corp. 0.25% due 12/31/08
(Conv.)......................... 153,600
US$ 250M Kolon International Corp. 1.0% due
12/31/08 (Conv.)................ 282,500
-------------
544,349
-------------
OIL RELATED
(Conv.)......................... 264,450
SFr 200M Yukong, Ltd. 1.0% due 12/31/98
(Conv.)......................... 271,743
-------------
536,193
-------------
TOTAL SOUTH KOREA................. 2,292,542
-------------
TAIWAN (4.1%)
BUILDING & CONSTRUCTION
SFr 300M Pacific Construction 2.125% due
10/1/98 (Conv.)................. 250,839
-------------
ELECTRONICS
20,000 Microelectronics Technology....... 230,000
US$ 200M United Micro Electronic 1.25% due
6/8/04 (Conv.).................. 226,000
-------------
456,000
-------------
RETAIL
US$ 200M Far Eastern Department Store 3.0%
due 7/6/01 (Conv.).............. 200,000
-------------
TEXTILES
US$ 300M Far Eastern Textile 4.0% due
10/7/06 (Conv.)................. 342,000
30,000 Tuntex Distinct (GDS)............. 341,250
-------------
683,250
-------------
TRANSPORTATION
US$ 200M U-Ming Marine Transport 1.5% due
2/7/01 (Conv.).................. 178,000
-------------
TOTAL TAIWAN...................... 1,768,089
-------------
THAILAND (8.1%)
AUTOMOTIVE
8,000 Swedish Motor Corp................ 101,638
-------------
BANKING
30,000 Bangkok Bank...................... 227,727
40,000 Thai Farmers Bank................. 210,947
96,000 Thai Military Bank................ 310,667
-------------
749,341
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
BUILDING & CONSTRUCTION
45,000 NTS Steel Group Co., Ltd.......... $ 120,455
25,000 NTS Steel Group Co., Ltd.
(Local)......................... 66,920
5,000 Siam Cement Co.................... 232,121
13,000 Siam City Cement Co., Ltd......... 223,332
2,600 Siam City Cement Co., Ltd.
(Rights)........................ 27,527
40,000 Tipco Asphalt Co.................. 254,095
-------------
924,450
-------------
FINANCIAL SERVICES
8,000 Phatra Thanakit Co., Ltd.......... 258,250
6,500 Securities One, Ltd............... 193,209
4,500 Securities One, Ltd. (Local)...... 133,759
-------------
585,218
-------------
FOREST PRODUCTS, PAPER & PACKAGING
20,000 Siam Pulp & Paper Co.............. 71,914
-------------
METALS & MINING
16,000 BanPu Coal Co., Ltd............... 262,086
-------------
REAL ESTATE
22,000 MDX Co., Ltd...................... 122,173
-------------
TELECOMMUNICATIONS
4,000 Advanced Information Services..... 153,096
20,000 Jasmine International............. 275,669
8,000 Loxley Co., Ltd................... 104,195
6,000 United Communication, Inc......... 115,062
-------------
648,022
-------------
TOTAL THAILAND.................... 3,464,842
-------------
TOTAL COMMON STOCKS, RIGHTS AND
BONDS (IDENTIFIED COST
$40,537,015).................... 39,955,883
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY (A) (8.1%)
$ 3,460 Federal National Mortgage
Association 4.10% due 7/1/94
(Amortized Cost $3,460,000)..... $ 3,460,000
<CAPTION>
CURRENCY AMOUNT
(IN THOUSANDS) EXPIRATION DATE/EXERCISE PRICE
- --------------- ----------------------------------
<C> <S> <C>
PURCHASED PUT OPTIONS ON FOREIGN CURRENCY (0.0%)
Y 204,120 October 31, 1994/Y102.06........ 5,000
Y 102,300 December 20, 1994/Y102.30....... 2,300
Y 300,000 December 23, 1994/Y100.0........ 9,900
-------------
TOTAL PURCHASED PUT OPTIONS ON
FOREIGN CURRENCY (IDENTIFIED
COST $94,800)................. 17,200
------------
TOTAL INVESTMENTS (IDENTIFIED COST
$44,091,815) (B)................. 101.8 % 43,433,083
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS..................... (1.8) (796,969)
---------- ------------
NET ASSETS......................... 100.0 % $ 42,636,114
---------- ------------
---------- ------------
<FN>
- ------------------
GDR - GLOBAL DEPOSITORY RECEIPT.
GDS - GLOBAL DEPOSITORY SHARE.
(A) U.S. GOVERNMENT AGENCY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST
RATE SHOWN HAS BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $44,091,815; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,594,476 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $2,253,208, RESULTING IN NET
UNREALIZED DEPRECIATION OF $658,732.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1994:
GROSS
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION/
RECEIVE EXCHANGE FOR DATE (DEPRECIATION)
- -------------------- ------------------ -------- --------------
HKD 4,866,362 US$ 629,705 7/01/94 $ (82)
US$ 23,286 Y 2,308,826 7/01/94 (49)
US$ 88,867 SGD 135,407 7/01/94 64
US$ 23,024 Y 2,277,513 7/05/94 5
IDR 100,000,000 US$ 45,935 7/29/94 154
----
Net Unrealized Appreciation*............................ $92
----
----
</TABLE>
* INCLUDES AGGREGATE GROSS UNREALIZED APPRECIATION OF $223 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $131, RESULTING IN NET UNREALIZED APPRECIATION OF
$92.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------------------------------------------------- ------------- -----------
<S> <C> <C>
Apparel................................................................................ $ 47,908 0.1%
Automotive............................................................................. 1,249,696 2.9
Banking................................................................................ 5,205,775 12.2
Building & Construction................................................................ 2,879,161 6.8
Business Services...................................................................... 362,949 0.9
Chemicals.............................................................................. 259,652 0.6
Computers.............................................................................. 279,160 0.7
Computer Services...................................................................... 546,135 1.3
Conglomerates.......................................................................... 2,640,963 6.2
Electric Utilities..................................................................... 1,119,418 2.6
Electronics............................................................................ 2,891,229 6.8
Engineering & Construction............................................................. 43,056 0.1
Entertainment.......................................................................... 536,064 1.3
Environmental Control.................................................................. 78,836 0.2
Financial Services..................................................................... 1,381,278 3.2
Food, Beverage, Tobacco & Household Products........................................... 1,832,121 4.3
Foreign Government (Put Options)....................................................... 17,200 0.0
Forest Products, Paper & Packaging..................................................... 901,335 2.2
Health & Personal Care................................................................. 356,681 0.8
Household Furnishings & Appliances..................................................... 47,706 0.1
Leisure................................................................................ 1,692,307 4.0
Machinery.............................................................................. 1,123,120 2.6
Manufacturing.......................................................................... 1,502,649 3.5
Metals & Mining........................................................................ 624,137 1.5
Miscellaneous.......................................................................... 215,562 0.5
Multi - Industry....................................................................... 730,881 1.7
Natural Gas............................................................................ 101,072 0.2
Oil Related............................................................................ 959,992 2.3
Pharmaceuticals........................................................................ 89,200 0.2
Photography............................................................................ 52,557 0.1
Real Estate............................................................................ 3,622,702 8.5
Retail Stores.......................................................................... 1,338,690 3.1
Shipbuilding........................................................................... 872,836 2.0
Telecommunications..................................................................... 2,620,180 6.1
Textiles............................................................................... 909,449 2.1
Transportation......................................................................... 640,497 1.5
U.S. Government Agency................................................................. 3,460,000 8.1
------------- -----
$ 43,433,083 101.8%
------------- -----
------------- -----
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Bonds.................................................................................. $ 2,953,555 6.9%
Common Stocks.......................................................................... 36,928,379 86.6
Put Options............................................................................ 17,200 0.0
Rights................................................................................. 73,949 0.2
------------- -----
$ 43,433,083 101.8%
------------- -----
------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value *
(Note 1).............................. $212,864,198 $485,089,032 $122,603,837 $414,565,387
Cash.................................... 18,453 -- -- --
Receivable for:
Investments sold...................... -- 74,733,203 -- 1,989,923
Shares of beneficial interest sold.... 1,447,873 13,913 143,973 64,025
Dividends............................. -- -- -- 1,702,622
Interest.............................. 15,505 7,185,838 2,807,017 1,182,703
Foreign withholding taxes reclaimed... -- -- -- --
Prepaid expenses and other assets....... 1,413 278 1,859 2,800
------------ ------------ ------------ ------------
TOTAL ASSETS.................... 214,347,442 567,022,264 125,556,686 419,507,460
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Investments purchased................. -- 100,375,923 3,382,451 --
Shares of beneficial interest
repurchased......................... 2,664 609,684 94,959 541,877
Investment management fees (Note 2)... 83,045 194,348 49,565 231,588
Accrued expenses and other payables
(Note 3).............................. 61,046 39,301 74,301 24,939
------------ ------------ ------------ ------------
TOTAL LIABILITIES............... 146,755 101,219,256 3,601,276 798,404
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in-capital......................... 214,200,531 508,342,108 204,546,780 444,060,180
Accumulated undistributed net investment
income................................ 156 35,067 2,567 1,785,548
Accumulated undistributed net realized
gains (losses)........................ -- (17,883,941) (68,352,643) 1,209,625
Net unrealized appreciation
(depreciation)........................ -- (24,690,226) (14,241,294) (28,346,297)
------------ ------------ ------------ ------------
NET ASSETS...................... $214,200,687 $465,803,008 $121,955,410 $418,709,056
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*IDENTIFIED COST........................ $212,864,198 $509,779,258 $136,845,131 $442,911,684
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................... 214,200,531 47,659,785 17,959,181 35,179,422
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSET VALUE PER SHARE (unlimited
authorized shares of $.01 par
value)................................ $1.00 $9.77 $6.79 $11.90
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
- ------------------
** Includes foreign cash of $87,219 and $101,213, respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL EUROPEAN MANAGED DIVIDEND
GROWTH GROWTH GROWTH EQUITY ASSETS GROWTH
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value *
(Note 1)............................. $551,272,247 $45,559,278 $125,370,821 $205,150,784 $347,279,254 $73,800,535
Cash................................... -- -- 4,717,276** -- -- 30,971
Receivable for:
Investments sold..................... 1,202,460 339,040 1,058,098 6,577,111 -- 589,643
Shares of beneficial interest sold... 269,140 7,458 183,859 38,951 204,366 366,496
Dividends............................ 1,630,296 55,452 246,131 189,838 200,560 348,740
Interest............................. 758,166 -- 12,775 12,716 477,683 --
Foreign withholding taxes
reclaimed.......................... -- -- 173,232 -- -- 55,596
Prepaid expenses and other assets...... 330 -- 194 535 2,780 --
------------ ----------- ------------ ------------ ------------ -----------
TOTAL ASSETS................... 555,132,639 45,961,228 131,762,386 211,969,935 348,164,643 75,191,981
------------ ----------- ------------ ------------ ------------ -----------
LIABILITIES:
Payable for:
Investments purchased................ 8,716,973 148,654 3,999,544 2,943,368 836,673 4,471,250
Shares of beneficial interest
repurchased........................ 193,923 62,758 12,682 369,875 45,989 --
Investment management fees (Note
2)................................. 278,126 25,036 104,661 87,616 141,549 39,789
Payable to bank........................ -- 60,233 12,017 32,194 -- --
Accrued expenses and other payables
(Note 3)............................. 66,788 15,391 45,670 48,280 51,042 12,593
------------ ----------- ------------ ------------ ------------ -----------
TOTAL LIABILITIES.............. 9,255,810 312,072 4,174,574 3,481,333 1,075,253 4,523,632
------------ ----------- ------------ ------------ ------------ -----------
NET ASSETS:
Paid-in-capital........................ 537,304,469 47,562,893 122,381,731 220,434,819 335,548,835 70,160,766
Accumulated undistributed net
Accumulated undistributed net realized
gains (losses)....................... (251,216) (787,884) 2,931,960 (9,514,300) 10,768,301 (47,117)
Net unrealized appreciation
(depreciation)....................... 7,565,784 (1,152,704) 1,744,638 (2,580,772) (254,950) 163,290
------------ ----------- ------------ ------------ ------------ -----------
NET ASSETS..................... $545,876,829 $45,649,156 $127,587,812 $208,488,602 $347,089,390 $70,668,349
------------ ----------- ------------ ------------ ------------ -----------
------------ ----------- ------------ ------------ ------------ -----------
*IDENTIFIED COST....................... $543,706,463 $46,711,982 $123,635,431 $207,731,556 $347,534,204 $73,643,679
------------ ----------- ------------ ------------ ------------ -----------
------------ ----------- ------------ ------------ ------------ -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 45,976,352 4,095,375 9,341,406 11,307,922 28,079,432 7,100,807
------------ ----------- ------------ ------------ ------------ -----------
------------ ----------- ------------ ------------ ------------ -----------
NET ASSET VALUE PER SHARE (unlimited
authorized shares of $.01 par
value)............................... $11.87 $11.15 $13.66 $18.44 $12.36 $9.95
------------ ----------- ------------ ------------ ------------ -----------
------------ ----------- ------------ ------------ ------------ -----------
<CAPTION>
PACIFIC
GROWTH
-----------
<S> <C>
ASSETS:
Investments in securities, at value *
(Note 1)............................. $43,433,083
Cash................................... 136,080**
Receivable for:
Investments sold..................... 46,374
Shares of beneficial interest sold... 216,476
Dividends............................ 32,276
Interest............................. 25,021
Foreign withholding taxes
reclaimed.......................... 602
Prepaid expenses and other assets...... 4,486
-----------
TOTAL ASSETS................... 43,894,398
-----------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased........................ --
Investment management fees (Note
2)................................. --
Payable to bank........................ --
Accrued expenses and other payables
(Note 3)............................. --
-----------
TOTAL LIABILITIES.............. 1,258,284
-----------
NET ASSETS:
Paid-in-capital........................ 43,372,682
Accumulated undistributed net
investment income.................... 50,240
Accumulated undistributed net realized
gains (losses)....................... (127,612)
Net unrealized appreciation
(depreciation)....................... (659,196)
-----------
NET ASSETS..................... $42,636,114
-----------
-----------
*IDENTIFIED COST....................... $44,091,815
-----------
-----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 4,570,108
-----------
-----------
NET ASSET VALUE PER SHARE (unlimited
authorized shares of $.01 par
value)............................... $9.33
-----------
-----------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENT OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest............................ $ 3,002,702 $ 17,185,772 $ 6,162,437 $ 2,544,600
Dividends........................... -- -- -- 8,373,609*
------------- ------------- ------------- -------------
TOTAL INCOME.................... 3,002,702 17,185,772 6,162,437 10,918,209
------------- ------------- ------------- -------------
EXPENSES
Investment management fees (Note
2)................................ 405,181 1,214,357 272,978 1,470,278
Shareholder reports and notices..... 9,184 21,395 4,545 9,139
Professional fees................... 7,275 15,962 5,203 12,910
Trustees' fees and expenses (Note
3)................................ 8,169 3,394 1,200 2,906
Registration fees................... 27,687 4,978 10,991 27
Custodian fees...................... 6,054 24,073 9,414 15,871
Other............................... 173 13,629 5,510 4,362
------------- ------------- ------------- -------------
TOTAL EXPENSES.................. 464,223 1,298,288 310,341 1,515,493
------------- ------------- ------------- -------------
NET INVESTMENT INCOME....... 2,538,479 15,887,484 5,852,096 9,402,716
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
(NOTE 1):
Net realized gain (loss) on:
Investments....................... -- (16,881,560) (855,360) 1,667,230
Foreign exchange transactions..... -- -- -- --
------------- ------------- ------------- -------------
-- (16,881,560) (855,360) 1,667,230
------------- ------------- ------------- -------------
Net change in unrealized
appreciation (depreciation) on:
Investments....................... -- (34,495,367) (4,870,959) (65,118,633)
Translation of other assets and
liabilities denominated in
foreign currencies.............. -- -- -- --
------------- ------------- ------------- -------------
-- (34,495,367) (4,870,959) (65,118,633)
------------- ------------- ------------- -------------
NET GAIN (LOSS)................. -- (51,376,927) (5,726,319) (63,451,403)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................ $ 2,538,479 $ (35,489,443) $ 125,777 $ (54,048,687)
------------- ------------- ------------- -------------
<FN>
- ------------------
(1) Commencement of Operations: February 23, 1994
* Net of $69,881, $40,611, $214,322, $19,123, $14,921, $50,059, and $16,075
in foreign withholding tax, respectively.
** Net of $ 337 in foreign withholding tax.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND PACIFIC
DIVIDEND CAPITAL EUROPEAN MANAGED GROWTH GROWTH
GROWTH GROWTH GROWTH EQUITY ASSETS (1) (1)
------------ --------- ------------ ------------- ------------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest........................ $ 1,172,202 $ 22,942 $ 268,019 $ 476,962 $ 4,186,106 $ 76,553 $ 53,179**
Dividends....................... 8,795,408* 378,379 1,764,697* 892,877* 1,969,909* 727,127* 142,125*
------------ --------- ------------ ------------- ------------- -------- --------
TOTAL INCOME................ 9,967,610 401,321 2,032,716 1,369,839 6,156,015 803,680 195,304
------------ --------- ------------ ------------- ------------- -------- --------
EXPENSES
Investment management fees (Note
2)............................ 1,623,993 156,237 563,774 517,138 798,354 61,341 --
Transfer agent fees............. 500 500 500 500 500 -- --
Shareholder reports and notices. 12,337 1,882 322 8,136 7,360 245 --
Professional fees............... 9,522 10,552 3,017 9,398 2,157 5,390 --
Trustees' fees and expenses (Note
3)............................ 2,956 333 104 1,921 1,981 101 --
Registration fees............... 32,759 -- 17,080 16,726 19,537 6,621 --
Custodian fees.................. 9,160 17,092 51,045 34,580 14,480 6,365 --
------------ ---------- ------------ ------------- ------------- -------- --------
TOTAL EXPENSES.............. 1,694,542 187,065 639,077 589,556 846,745 80,063 --
------------ ---------- ------------ ------------- ------------- -------- --------
NET INVESTMENT INCOME... 8,273,068 214,256 1,393,639 780,283 5,309,270 723,617 195,304
------------ ---------- ------------ ------------- ------------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
(NOTE 1):
Net realized gain (loss) on:
Investments................... 1,640,289 (260,972) 4,505,017 (8,188,287) 11,589,639 (39,361) (130,398)
Foreign exchange transactions. -- -- (1,569,811) -- -- (7,756) 2,786
------------ ---------- ------------ ------------- ------------- --------- ---------
1,640,289 (260,972) 2,935,206 (8,188,287) 11,589,639 (47,117) (127,612)
------------ ---------- ------------ ------------- ------------- --------- ---------
Net change in unrealized
appreciation (depreciation) on:
Investments................... (42,217,718) (2,283,353) (5,157,527) (15,039,156) (14,086,227) 156,856 (658,732)
Translation of other assets and
liabilities denominated in
foreign currencies.......... -- -- 21,517 -- -- 6,434 (464)
------------ ---------- ------------ ------------- ------------ --------- ---------
(42,217,718) (2,283,353) (5,136,010) (15,039,156) (14,086,227) 163,290 (659,196)
------------ ----------- ------------ ------------- ------------ --------- ---------
NET GAIN (LOSS)............. (40,577,429) (2,544,325) (2,200,804) (23,227,443) (2,496,588) 116,173 (786,808)
------------ ----------- ------------ ------------- ------------ --------- ---------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............ $(32,304,361) $(2,330,069) $ (807,165) $ (22,447,160) $ 2,812,682 $839,790 $(591,504)
------------ ----------- ------------- -------------- ------------ --------- ---------
------------ ----------- ------------- -------------- ------------ --------- ---------
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE PERIOD ENDED JUNE 30, 1994 (UNAUDITED) AND FOR THE YEAR ENDED DECEMBER
31,1993
<TABLE>
<CAPTION>
MONEY MARKET QUALITY INCOME PLUS
--------------------------- ---------------------------
1994 1993 1994 1993
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.............. $ 2,538,479 $ 2,906,088 $ 15,887,484 $ 20,679,099
Net realized gain (loss)........... -- -- (16,881,560) 8,180,477
Net change in unrealized
appreciation (depreciation)...... -- -- (34,495,367) 4,200,907
------------- ------------ ------------- ------------
Net increase (decrease) in net
assets resulting from
operations................... 2,538,479 2,906,088 (35,489,443) 33,060,483
------------- ------------ ------------- ------------
Dividends and distributions to
shareholders from:
Net investment income.............. (2,538,408) (2,906,087) (15,852,995) (20,733,963)
Net realized gain.................. -- -- (8,412,812) --
------------- ------------ ------------- ------------
(2,538,408) (2,906,087) (24,265,807) (20,733,963)
------------- ------------ ------------- ------------
Transactions in shares of beneficial
interest:
Net proceeds from sales............ 136,322,985 110,933,469 56,487,995 305,118,024
Reinvestment of dividends and
distributions.................... 2,538,409 2,906,086 24,263,732 20,733,884
Cost of shares repurchased......... (54,585,865) (80,065,561) (42,840,000) (13,899,740)
------------- ------------ ------------- ------------
Net increase (decrease) in net
assets from transactions in
shares of beneficial
interest..................... 84,275,529 33,773,994 37,911,727 311,952,168
------------- ------------ ------------- ------------
Total increase (decrease)...... 84,275,600 33,773,995 (21,843,523) 324,278,688
NET ASSETS:
------------- ------------ ------------- ------------
END OF PERIOD........................ $ 214,200,687 $129,925,087 $ 465,803,008 $487,646,531
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
UNDISTRIBUTED NET INVESTMENT INCOME.... $ 156 $ 85 $ 35,067 $ 578
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
SHARES ISSUED AND REPURCHASED:
Sold................................. 136,322,985 110,933,469 5,252,135 27,855,790
Issued in reinvestment of dividends
and distributions.................. 2,538,409 2,906,086 2,373,397 1,881,374
Repurchased.......................... (54,585,865) (80,065,561) (4,168,619) (1,260,583)
------------- ------------ ------------- ------------
Net increase (decrease).............. 84,275,529 33,773,994 3,456,913 28,476,581
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD UTILITIES DIVIDEND GROWTH
--------------------------- --------------------------- --------------------------
1994 1993 1994 1993 1994 1993
------------- ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............. $ 5,852,096 $ 7,352,743 $ 9,402,716 $ 12,658,578 $ 8,273,068 $ 9,870,586
Net realized gain (loss).......... (855,360) (4,735,637) 1,667,230 2,261,234 1,640,289 1,384,492
Net change in unrealized
appreciation (depreciation)..... (4,870,959) 9,877,901 (65,118,633) 19,355,022 (42,217,718) 30,925,020
------------- ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
------------- ------------ ------------- ------------ ------------ ------------
Dividends and distributions to
shareholders from:
Net investment income............. (5,883,644) (7,316,733) (8,966,697) (11,879,161) (7,810,394) (9,428,340)
Net realized gain................. -- -- (2,680,971) (454,570) -- --
------------- ------------ ------------- ------------ ------------ ------------
(5,883,644) (7,316,733) (11,647,668) (12,333,731) (7,810,394) (9,428,340)
------------- ------------ ------------- ------------ ------------ ------------
Transactions in shares of beneficial
interest:
Net proceeds from sales........... 37,360,818 43,270,397 45,168,379 315,722,662 111,373,553 260,254,121
Reinvestment of dividends and
distributions................... 5,883,644 7,316,732 8,966,697 12,333,731 7,810,394 9,428,340
Cost of shares repurchased........ (5,731,586) (5,607,128) (60,663,699) (12,811,170) (16,337,503) (11,840,572)
------------- ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in net
assets from transactions in
shares of beneficial
interest.................... 37,512,876 44,980,001 (6,528,623) 315,245,223 102,846,444 257,841,889
------------- ------------ ------------- ------------ ------------ ------------
Total increase (decrease)..... 31,755,009 50,158,275 (72,224,978) 337,186,326 62,731,689 290,593,647
NET ASSETS:
Beginning of period................. 90,200,401 40,042,126 490,934,034 153,747,708 483,145,140 192,551,493
------------- ------------ ------------- ------------ ------------ ------------
END OF PERIOD....................... $ 121,955,410 $ 90,200,401 $ 418,709,056 $490,934,034 $545,876,829 $483,145,140
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
UNDISTRIBUTED NET INVESTMENT INCOME... $ 2,567 $ 34,115 $ 1,785,548 $ 1,349,529 $ 1,257,792 $ 795,118
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
SHARES ISSUED AND REPURCHASED:
Issued in reinvestment of dividends
and distributions................. 833,180 1,053,326 700,265 902,622 633,753 767,569
Repurchased......................... (816,403) (809,003) (4,715,399) (934,385) (1,343,697) (979,408)
------------- ------------ ------------- ------------ ------------ ------------
Net increase (decrease)............. 5,266,390 6,467,996 (539,290) 23,261,693 8,183,149 21,063,073
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FOR THE PERIOD ENDED JUNE 30, 1994 (UNAUDITED) AND FOR THE YEAR ENDED DECEMBER
31,1993
<TABLE>
<CAPTION>
CAPITAL GROWTH EUROPEAN GROWTH
---------------------- ---------------------------
1994 1993 1994 1993
----------- --------- ------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............ $ 214,256 $ 363,745 $ 1,393,639 $ 282,228
Net realized gain (loss)......... (260,972) (240,483) 2,935,206 3,620,336
Net change in unrealized
appreciation (depreciation).... (2,283,353) (3,491,305) (5,136,010) 6,853,206
----------- ----------- ------------- ------------
Net increase (decrease) in net
assets resulting from
operations................. (2,330,069) (3,368,043) (807,165) 10,755,770
---------- ----------- ------------- ------------
Dividends and distributions to
shareholders from:
Net investment income............ (248,431) (338,174) (1,731,328) (258,172)
Net realized gain................ (137,223) -- (2,644,665) (199,841)
----------- ---------- ------------- -------------
(385,654) (338,174) (4,375,993) (458,013)
----------- ---------- ------------- -------------
Transactions in shares of beneficial
interest:
Net proceeds from sales.......... 6,148,897 24,319,197 58,246,724 59,000,547
distributions.................. 385,653 338,174 4,375,992 458,013
Cost of shares repurchased....... (8,478,509) (15,747,254) (8,904,135) (1,390,412)
----------- ----------- ------------- -----------
Net increase (decrease) in net
assets from transactions in
shares of beneficial
interest................... (1,943,959) 8,910,117 53,718,581 58,068,148
----------- ---------- ------------- ------------
Total increase (decrease).... (4,659,682) 5,203,900 48,535,423 68,365,905
NET ASSETS:
Beginning of period................ 50,308,838 45,104,938 79,052,389 10,686,484
----------- ----------- ------------- ------------
END OF PERIOD...................... $45,649,156 $50,308,838 $ 127,587,812 $ 79,052,389
----------- ----------- ------------- ------------
----------- ----------- ------------- ------------
UNDISTRIBUTED NET INVESTMENT INCOME.. $ 26,851 $ 61,026 $ 529,483 $ 867,172
----------- ----------- ------------- ------------
----------- ----------- ------------- ------------
SHARES ISSUED AND REPURCHASED:
Sold............................... 527,669 2,077,229 4,014,235 4,664,827
Issued in reinvestment of dividends
and distributions................ 33,597 29,150 315,897 38,773
Repurchased........................ (725,325) (1,374,613) (623,617) (118,865)
----------- ---------- ------------- ------------
Net increase (decrease)............ (164,059) 731,766 3,706,515 4,584,735
----------- ---------- ------------- ------------
----------- ---------- ------------- ------------
<FN>
- ------------------
(1) Commencement of Operations: February 23, 1994
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL PACIFIC
DIVIDEND GROWTH
EQUITY MANAGED ASSETS GROWTH (1) (1)
--------------------------- --------------------------- ---------- -----------
------------- ------------ ------------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............ $ 780,283 $ 803,918 $ 5,309,270 $ 6,588,590 $ 723,617 $ 195,304
Net realized gain (loss)......... (8,188,287) 15,242,235 11,589,639 8,034,397 (47,117) (127,612)
Net change in unrealized
appreciation (depreciation).... (15,039,156) 3,236,728 (14,086,227) 5,370,815 163,290 (659,196)
------------- ------------ ------------- ------------ ---------- ----------
Net increase (decrease) in net
assets resulting from
operations................. (22,447,160) 19,282,881 2,812,682 19,993,802 839,790 (591,504)
------------- ------------ ------------- ------------ ---------- ----------
Dividends and distributions to
shareholders from:
Net investment income............ (825,653) (760,806) (4,994,081) (6,339,592) (332,207) (145,064)
Net realized gain................ (16,442,098) (6,092,158) (6,891,354) (7,347,526) -- --
------------- ------------ ------------- ------------ ---------- ----------
(17,267,751) (6,852,964) (11,885,435) (13,687,118) (332,207) (145,064)
------------- ------------ ------------- ------------ ---------- ----------
Transactions in shares of beneficial
interest:
Net proceeds from sales.......... 62,442,092 96,261,692 65,278,338 137,119,451 70,383,373 43,983,093
Reinvestment of dividends and
distributions................... 17,267,751 6,852,964 11,885,434 13,687,118 332,208 145,064
Cost of shares repurchased....... (14,334,194) (10,243,552) (8,503,978) (6,351,926) (554,815) (756,475)
------------- ------------ ------------- ------------ ---------- ----------
Net increase (decrease) in net
assets from transactions in
shares of beneficial
interest................... 65,375,649 92,871,104 68,659,794 144,454,643 70,160,766 43,371,682
------------- ------------ ------------- ------------ ---------- -----------
Total increase (decrease).... 25,660,738 105,301,021 59,587,041 150,761,327 70,668,349 42,635,114
NET ASSETS:
------------- ------------ ------------- ------------ ---------- -----------
END OF PERIOD...................... $ 208,488,602 $182,827,864 $ 347,089,390 $287,502,349 $70,668,349 $42,636,114
------------- ------------ ------------- ------------ ---------- -----------
------------- ------------ ------------- ------------ ---------- -----------
UNDISTRIBUTED NET INVESTMENT INCOME.. $ 148,855 $ 194,225 $ 1,027,204 $ 712,015 $ 391,410 $ 50,240
------------- ------------ ------------- ------------ ---------- -----------
------------- ------------ ------------- ------------ ---------- -----------
SHARES ISSUED AND REPURCHASED:
Sold............................... 2,843,240 4,485,338 5,128,990 10,942,015 7,124,743 4,635,454
Issued in reinvestment of dividends
and distributions................ 883,325 336,539 952,905 1,102,080 33,984 15,494
Repurchased........................ (673,647) (483,237) (671,014) (506,227) (57,920) (80,940)
------------- ------------ ------------- ------------ ---------- ----------
Net increase (decrease)............ 3,052,918 4,338,640 5,410,881 11,537,868 7,100,807 4,570,008
------------- ------------ ------------- ------------ ---------- -----------
------------- ------------ ------------- ------------ ---------- ----------
</TABLE>
<PAGE>
Dean Witter Variable Investments Series
Notes to Financial Statements (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Variable Investment Series
(the "Fund") is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. All shares of the
Portfolios are owned by Northbrook Life Insurance Company ("Northbrook") or
Allstate Life Insurance Company of New York ("Allstate New York") for allocation
to Northbrook Variable Annuity Account as the underlying investment for the
variable annuity contracts issued by Northbrook and flexible premium deferred
variable annuity contracts issued by Allstate New York.
The Fund, organized on February 25, 1983 as a Massachusetts business trust,
is comprised of eleven Portfolios and commenced operations as follows:
<TABLE>
<CAPTION>
COMMENCEMENT OF COMMENCEMENT
- --------------------------------- ----------------- --------------------------------- ---------------------
<S> <C> <C> <C>
Money Market..................... March 9, 1984 European Growth.................. March 1, 1991
Quality Income Plus.............. March 1, 1987 Equity........................... March 9, 1984
High Yield....................... March 9, 1984 Managed Assets................... March 1, 1987
Utilities........................ March 1, 1990 Global Dividend Growth........... February 23, 1994
Dividend Growth.................. March 1, 1990 Pacific Growth................... February 23, 1994
Capital Growth................... March 1, 1991
</TABLE>
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS--Money Market: Securities are valued at
amortized cost which approximates market value. All remaining Portfolios:
(1) equity securities listed or traded on the New York or American Stock
Exchange or other domestic or foreign stock exchange are 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 securities are traded on more than one exchange, the
securities are valued on the exchange designated as the primary market 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) listed options on debt
securities are valued at the latest sale price on the exchange on which they
are listed unless no sales of such options have taken place that day, in
which case they will be valued at the mean between their latest bid and
asked price. Unlisted options on debt securities and all options on equity
securities are valued at the mean between their latest bid and asked prices;
(4) futures contracts are valued at the latest sale price on the commodities
exchange on which they trade unless the Trustees determine that such price
does not reflect their market value, in which case it will be valued at fair
value as determined by the Trustees; (5) when market quotations are not
readily available, 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; (6) certain of the Fund's portfolio
securities may be valued by an outside pricing service approved by the
Trustees. The pricing service utilizes a matrix system incorporating
and/or research and evaluations by its staff, including review of
broker-dealer market price quotations, in determining what it believes is
the fair valuation of the securities valued by such pricing service; and (7)
short-term debt securities having a maturity date of more than sixty days
are valued on a mark-to-market basis, that is, at prices based on market
quotations for securities of a similar type, yield, quality and maturity,
until sixty days prior to maturity and thereafter at amortized cost.
Short-term debt securities having a maturity date of sixty days or less at
the time of purchase are valued at amortized cost.
<PAGE>
DEAN WITTER VARIABLE INVESTMENTS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 on the identified cost
method. Dividend income is 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. Interest income is accrued
daily except where collection is not expected. In determining net investment
income, Money Market amortizes premiums and discounts on securities owned;
gains and losses realized upon the sale of such securities are based on
their amortized cost. All other Portfolios do not amortize premiums or
accrue discounts on fixed income securities except original issue discounts
which are required for federal income tax purposes. With respect to market
discount on bonds, a portion of any capital gain realized upon disposition
may be recharacterized as investment income.
C. OPTIONS AND FUTURES--(1) Written options on debt obligations, equities
and foreign currency: When the Fund writes a call or put option, an amount
equal to the premium received is included in the Fund's Statement of Assets
and Liabilities as an asset and as an equivalent liability. The amount of
the liability is subsequently marked-to-market to reflect the current market
value of the option written. If a written option either expires or the Fund
enters into a closing purchase transaction, the Fund realizes a gain or loss
without regard to any unrealized gain or loss on the underlying security or
currency and the liability related to such option is extinguished. If a
written call option is exercised, the Fund realizes a gain or loss from the
sale of the underlying security or currency and the proceeds from such sale
Fund has written is exercised, the amount of the premium originally received
reduces the cost of the security which the Fund purchases upon exercise of
the option; (2) Purchased options on debt obligations, equities and foreign
currency: When the Fund purchases a call or put option, the premium paid is
recorded as an investment and is subsequently marked-to-market to reflect
the current market value. If a purchased option expires, the Fund will
realize a loss to the extent of the premium paid. If the Fund enters into a
closing sale transaction, a gain or loss is realized for the difference
between the proceeds from the sale and the cost of the option. If a put
option is exercised, the cost of the security sold upon exercise will be
increased by the premium originally paid. If a call option is exercised, the
cost of the security purchased upon exercise will be increased by the
premium originally paid; (3) Options on futures contracts: The Fund is
required to deposit U.S. Government securities as "initial margin" and
"variation margin", with respect to written call and put options on futures
contracts. If a written option expires, the Fund realizes a gain. If a
written call or put option is exercised, the premium received will decrease
or increase the unrealized loss or gain, respectively, on the future. If the
Fund enters into a closing purchase transaction, the Fund realizes a gain or
loss without regard to any unrealized gain or loss on the underlying futures
contract and the liability related to such option is extinguished; (4)
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 or U.S. Government 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. Such receipts or
payments, variation margin, 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.
D. FOREIGN CURRENCY TRANSLATION--The books and records of the Portfolios
investing in foreign currency denominated transactions are translated into
U.S. dollars as follows: (1) the foreign
<PAGE>
DEAN WITTER VARIABLE INVESTMENTS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
currency market value of investment securities, other assets and liabilities
and forward 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 rate prevailing on the respective dates of such
transactions. The resultant exchange gains and losses are included in the
Statement of Operations. 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 Portfolios do 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.
E. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS--Some of the Portfolios are
permitted to enter into forward foreign currency exchange contracts as a
hedge against fluctuations in foreign exchange rates. Forward contracts are
valued daily at the appropriate exchange rates and any resulting unrealized
currency gains or losses are reflected in the respective Portfolios'
accounts. The Portfolios record realized gains or losses on delivery of the
currency.
F. REPURCHASE AGREEMENTS--The Fund's custodian takes possession on behalf of
the Fund of the collateral pledged for investments in repurchase agreements.
It is the policy of the Fund to value the underlying collateral daily on a
mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Fund has the
right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation.
G. FEDERAL INCOME TAX STATUS--It is the Fund's policy to comply individually
for each Portfolio 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
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. EXPENSES--Direct expenses are charged to the respective Portfolio and
general corporate expenses are allocated on the basis of relative net
assets.
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS--Pursuant to an Investment
Management Agreement, Dean Witter InterCapital Inc. (the "Investment Manager")
manages the Fund's investments. Under the Agreement, the Fund pays its
Investment Manager a monthly management fee, calculated and accrued daily, by
applying the following annual rates to the each Portfolios' net assets
determined at the close of each business day: Money Market, Quality Income Plus,
High Yield, Equity and Managed Assets--0.50%; Dividend Growth--0.625%; Utilities
and Capital Growth--0.65%; Global
<PAGE>
DEAN WITTER VARIABLE INVESTMENTS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Dividend Growth--0.75%; European Growth and Pacific Growth--1.0%. Effective May
1, 1994, the Agreement was amended to reduce the annual rates of Dividend Growth
and Utilities to 0.50% and 0.55%, respectively, to be applied to the daily net
assets of each of the respective Portfolios exceeding $500 million.
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.
Under a Sub-Advisory Agreement between Morgan Grenfell Investment Services
Limited (the "Sub-Advisor") and the Investment Manager, the Sub-Advisor provides
European Growth and Pacific Growth with investment advice and portfolio
management relating to the Portfolios' 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 monthly compensation equal to 40% of its monthly compensation.
brokerage fees) and waive the compensation provided for in the Agreement until
such time as Global Dividend Growth and Pacific Growth each had $50 million of
net assets or until August 23, 1994. The management fee waived and other
expenses assumed by the Investment Manager for Global Dividend Growth was
approximately $48,089 and $35,116, respectively for the period February 23, 1994
through May 12, 1994. The management fee waived and other expenses assumed by
the Investment Manager for Pacific Growth was approximately $89,937 and $43,062,
respectively, for the period February 23, 1994 through June 30, 1994.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--Purchases and
sales/maturities of portfolio securities, excluding short-term investments
(except for Money Market), for the six months ended June 30, 1994 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES/MATURITIES
------------------ ------------------
<S> <C> <C>
Money Market.................................................... $ 1,258,844,378 $ 1,179,270,531
Quality Income Plus............................................. 708,159,604 675,972,899
High Yield...................................................... 122,684,899 82,889,491
Utilities....................................................... 48,580,238 43,195,010
Dividend Growth................................................. 153,617,553 46,311,452
Capital Growth.................................................. 8,028,812 9,205,452
European Growth................................................. 86,631,753 32,570,720
Equity.......................................................... 300,520,878 285,301,118
Managed Assets.................................................. 66,246,619 147,314,440
Global Dividend Growth.......................................... 71,064,247 801,207
Pacific Growth.................................................. 42,280,717 1,731,454
</TABLE>
For the six months ended June 30, 1994, the following respective Portfolios
paid commissions to Dean Witter Reynolds Inc. ("DWR") for portfolio transactions
executed on behalf of the Portfolio:
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND MANAGED
UTILITIES GROWTH GROWTH GROWTH EQUITY ASSETS
<S> <C> <C> <C> <C> <C> <C>
Commissions...................... $ 6,750 $ 100,275 $ 14,819 $ 19,355 $ 67,050 $ 28,956
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENTS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
For the six months ended June 30, 1994, Pacific Growth incurred brokerage
commissions of $26,194 with affiliates of Morgan Grenfell for transactions
executed on behalf of the Fund.
Included in the Dividend Growth, Capital Growth, Managed Assets, and Global
Dividend Growth Portfolios' payables for investments purchased and included in
the Capital Growth and Equity Portfolios' receivable for investments sold are
$2,719,863, $148,654, $836,673, $991,988, $291,440 and $584,039, respectively,
for unsettled trades with Dean Witter Reynolds Inc. at June 30, 1994.
Included in the Pacific Growth Portfolio's payable for investment purchased
is $629,499 for unsettled trades with Morgan Grenfell at June 30, 1994.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent.
On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all Trustees of the Fund who will have served as
an independent Trustee 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, 1994, included in Trustees' fees and expenses in the Statement of
Operations and the accrued pension liability included in accrued expenses in the
Statement of Assets and Liabilities are as follows:
<TABLE>
<CAPTION>
MONEY QUALITY HIGH DIVIDEND CAPITAL
MARKET INCOME PLUS YIELD UTILITIES GROWTH GROWTH
--------- ----------- --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Pension Costs............................... $ 7,555 $ 3,265 $ 536 $ 867 $ 851 $ 179
Accrued Pension Liability............................. $ 18,067 $ 6,912 $ 3,499 $ 4,350 $ 6,293 $ 1,266
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
EUROPEAN MANAGED DIVIDEND
----------- --------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Aggregate Pension Costs............................... $ 536 $ 764 $ 527 $ 50
Accrued Pension Liability............................. $ 3,790 $ 4,964 $ 7,288 $ 50
</TABLE>
4. FEDERAL INCOME TAX STATUS--At December 31, 1993, the following Portfolios
had approximate net capital loss carryovers which may be used to offset future
capital gains to the extent provided by regulations:
<TABLE>
<CAPTION>
AVAILABLE THROUGH DECEMBER
31, 1996 1997 1998 1999 2000 2001 TOTAL
- ---------------------------- ---------- ----------- ----------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
High Yield.................. $7,297,000 $10,694,000 $34,291,000 $7,336,000 $3,057,000 $4,736,000 $67,411,000
Dividend Growth............. -- -- 1,372,000 -- -- -- 1,372,000
</TABLE>
Capital losses incurred after October 31 ("Post-October losses") within the
taxable year are deemed to arise on the first business day of the Portfolios'
next taxable year. The following Portfolios incurred and will elect to defer net
capital losses for fiscal 1993: Capital Growth--$165,000; Quality Income
Plus--$39,000 and Utilities--$418,000. To the extent that these carryover losses
are used to offset future capital gains, it is probable that the gains so offset
will not be distributed to shareholders.
<PAGE>
DEAN WITTER VARIABLE INVESTMENTS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 1993, the primary reason(s) for significant
temporary/permanent book/tax differences were as follows:
<TABLE>
<CAPTION>
TEMPORARY DIFFERENCES PERMANENT DIFFERENCES
------------------------------- --------------------------------
POST-OCTOBER LOSS DEFERRALS DIVIDEND FOREIGN CURRENCY
PORTFOLIO CAPITAL LOSSES FROM WASH SALES REDESIGNATIONS GAINS/LOSSES
- --------------------------------------------- -------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Quality Income Plus.......................... -
Utilities.................................... -
Dividend Growth.............................. -
Capital Growth............................... - -
European Growth.............................. -
Equity....................................... - -
Managed Assets............................... - -
</TABLE>
5. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK--As of June 30, 1994,
Global Dividend Growth, European Growth and Pacific Growth had outstanding
forward foreign currency exchange contracts ("forward contracts") as a hedge
against changes in foreign exchange rates. Forward contracts involve elements of
market risk in excess of the amount reflected in the Statement of Assets and
Liabilities. The Portfolios bear the risk of an unfavorable change 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.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED RATIOS AND PER SHARE DATA FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
NET ASSET
YEAR VALUE INVESTMENT REALIZED AND TOTAL FROM DIVIDENDS DISTRIBUTIONS
ENDED BEGINNING OF INCOME-- UNREALIZED GAIN INVESTMENT TO TO TOTAL DIVIDENDS
DEC. 31 PERIOD NET (LOSS)--NET OPERATIONS SHAREHOLDERS SHAREHOLDERS AND DISTRIBUTIONS
----------- ------------ ----------- --------------- ----------- ----------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET
1989 $ 1.00 $ .086 $ -0- $ .086 $ (.086) $ -0- $ (.086)
1990 1.00 .076 -0- .076 (.076) -0- (.076)
1991 1.00 .056 -0- .056 (.056) -0- (.056)
1992 1.00 .034 -0- .034 (.034) -0- (.034)
1993 1.00 .027 -0- .027 (.027) -0- (.027)
1994+++ 1.00 .015 -0- .015 (.015) -0- (.015)
QUALITY INCOME PLUS
1990 9.73 .86 (.24) .62 (.86) -0- (.86)
1991 9.49 .85 .85 1.70 (.85) -0- (.85)
1992 10.34 .77 .05 .82 (.77) -0- (.77)
1993 10.39 .69 .64 1.33 (.69) -0- (.69)
1994+++ 11.03 .34 (1.08) (.74) (.34) (.18) (.52)
HIGH YIELD
1989 9.92 1.30 (2.40) (1.10) (1.30) -0- (1.30)
1990 7.52 1.13 (2.91) (1.78) (1.13) (.06)++ (1.19)
1991 4.55 .70 1.81 2.51 (.70) (.11)++ (.81)
1992 6.25 .96 .18 1.14 (.96) -0- (.96)
1993 6.43 .81 .68 1.49 (.81) -0- (.81)
1994+++ 7.11 .38 (.32) .06 (.38) -0- (.38)
UTILITIES
1990* 10.00 .47 (.04) .43 (.41) -0- (.41)
1991 10.02 .54 1.45 1.99 (.54) -0- (.54)
1992 11.47 .51 .88 1.39 (.52) -0- (.52)
1993 12.34 .49 1.43 1.92 (.50) (.02) (.52)
1994+++ 13.74 .26 (1.77) (1.51) (.25) (.08) (.33)
DIVIDEND GROWTH
1990* 10.00 .33 (1.10) (.77) (.30) -0- (.30)
1991 8.93 .36 2.08 2.44 (.37) -0- (.37)
1992 11.00 .37 .51 .88 (.37) -0- (.37)
1993 11.51 .36 1.27 1.63 (.36) -0- (.36)
1994+++ 12.78 .19 (.92) (.73) (.18) -0- (.18)
CAPITAL GROWTH
1991** 10.00 .15 2.67 2.82 (.13) -0- (.13)
1992 12.69 .07 .13 .20 (.08) (.02) (.10)
1994+++ 11.81 .05 (.62) (.57) (.06) (.03) (.09)
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
NET ASSETS ----------------------------
YEAR NET ASSET TOTAL AT END OF NET
ENDED VALUE END INVESTMENT PERIOD INVESTMENT PORTFOLIO
DEC. 31 OF PERIOD RETURN+ (000'S) EXPENSES INCOME TURNOVER RATE
----------- ---------- ------------- ---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET
1989 $ 1.00 9.05% $ 76,701 .58% 8.67% N/A
1990 1.00 7.89 118,058 .57 7.60 N/A
1991 1.00 5.75 104,277 .57 5.62 N/A
1992 1.00 3.43 96,151 .59 3.38 N/A
1993 1.00 2.75 129,925 .57 2.71 N/A
1994+++ 1.00 1.53(1) 214,201 .57(2) 3.13(2) N/A
QUALITY INCOME PLUS
1989 9.73 12.78 48,784 .70 9.09 242%
1990 9.49 6.84 57,407 .66 9.09 166
1991 10.34 18.75 81,918 .60 8.39 105
1992 10.39 8.26 163,368 .58 7.41 148
1993 11.03 12.99 487,647 .56 6.17 219
1994+++ 9.77 (6.83)(1) 465,566 .53(2) 6.54(2) 136
HIGH YIELD
1989 7.52 (12.44) 96,359 .55 13.94 54
1990 4.55 (25.54) 27,078 .69 17.98 42
1991 6.25 58.14 34,603 1.01 12.29 300
1992 6.43 18.35 40,042 .74 14.05 204
1993 7.11 24.08 90,200 .60 11.80 177
UTILITIES
1990* 10.02 4.52(1) 37,597 .40(2)(3) 6.38(2) 46
1991 11.47 20.56 68,449 .80 5.23 25
1992 12.34 12.64 153,748 .73 4.63 26
1993 13.74 15.69 490,934 .71 3.75 11
1994+++ 11.90 (11.13)(1) 418,709 .67(2) 4.16(2) 10
DIVIDEND GROWTH
1990* 8.93 (7.81)(1) 57,282 .54(2)(3) 4.50(2) 19
1991 11.00 27.76 98,023 .73 3.61 6
1992 11.51 8.16 192,551 .69 3.42 4
1993 12.78 14.34 483,145 .68 3.01 6
1994+++ 11.87 (5.73)(1) 545,877 .65(2) 3.17(2) 9
CAPITAL GROWTH
1991** 12.69 28.41(1) 18,400 -0-(2)(4) 1.82(2) 32
1992 12.79 1.64 45,105 .86 .62 22
1993 11.81 (6.99) 50,309 .74 .78 36
1994+++ 11.15 (4.82)(1) 45,649 .78(2) .89(2) 17
</TABLE>
(TABLE CONTINUED ON FOLLOWING PAGE)
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET
YEAR VALUE INVESTMENT REALIZED AND TOTAL FROM DIVIDENDS DISTRIBUTIONS
ENDED BEGINNING OF INCOME-- UNREALIZED GAIN INVESTMENT TO TO TOTAL DIVIDENDS
DEC. 31 PERIOD NET (LOSS)--NET OPERATIONS SHAREHOLDERS SHAREHOLDERS AND DISTRIBUTIONS
----------- ------------ ----------- --------------- ----------- ----------- ------------- -----------------
EUROPEAN GROWTH
<S> <C> <C> <C> <C> <C> <C> <C>
1991** $10.00 $ .25 $ (.13) $ .12 $ (.23) $ -0- $ (.23)
1992 9.89 .08 .32 .40 (.10) (.01) (.11)
1993 10.18 .12 3.98 4.10 (.12) (.13) (.25)
EQUITY
1989 13.36 .71 1.77 2.48 (.70) -0- (.70)
1990 15.14 .48 (1.03) (.55) (.49) -0- (.49)
1991 14.10 .20 8.05 8.25 (.21) -0- (.21)
1992 22.14 .23 (.47) (.24) (.24) (1.86) (2.10)
1993 19.80 .15 3.63 3.78 (.15) (1.28) (1.43)
1994+++ 22.15 .07 (2.10) (2.03) (.08) (1.60) (1.68)
MANAGED ASSETS
1989 10.22 .84 .20 1.04 (.79) (.06) (.85)
1990 10.41 .61 (.46) .15 (.67) (.08) (.75)
1991 9.81 .47 2.24 2.71 (.50) -0- (.50)
1992 12.02 .44 .41 .85 (.45) (.13) (.58)
1993 12.29 .38 .86 1.24 (.38) (.47) (.85)
1994+++ 12.68 .20 (.07) .13 (.20) (.25) (.45)
GLOBAL DIVIDEND GROWTH
1994*** 10.00 .13 (.10) .03 (.08) -0- (.08)
PACIFIC GROWTH
1994*** 10.00 .06 (.68) (.62) (.05) -0- (.05)
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
NET ASSETS ----------------------------
YEAR NET ASSET TOTAL AT END OF NET
ENDED VALUE END INVESTMENT PERIOD INVESTMENT PORTFOLIO
DEC. 31 OF PERIOD RETURN+ (000'S) EXPENSES INCOME TURNOVER RATE
----------- ---------- ------------- ---------- ------------- ------------ ---------------
EUROPEAN GROWTH
<S> <C> <C> <C> <C> <C> <C>
1991** $ 9.89 1.34 %(1) $ 3,653 -0-%(2)(4) 3.18%(2) 77 %
1992 10.18 3.99 10,686 1.73 .74 97
1994+++ 13.66 .93(1) 127,588 1.13(2) 2.47(2) 31
EQUITY
1989 15.14 18.83 58,316 .60 4.85 81
1990 14.10 (3.62) 41,234 .62 3.38 130
1991 22.14 59.05 63,524 .64 1.09 214
1992 19.80 .05 77,527 .62 1.22 286
1993 22.15 19.72 182,828 .58 .69 265
1994+++ 18.44 (9.56) (1) 208,489 .57(2) .75(2) 155
MANAGED ASSETS
1989 10.41 10.67 88,712 .57 8.38 282
1990 9.81 1.56 68,447 .58 6.10 163
1991 12.02 28.26 87,779 .60 4.34 86
1992 12.29 7.24 136,741 .58 3.74 87
1993 12.68 10.38 287,502 .57 3.11 57
1994+++ 12.36 1.06(1) 347,089 .53(2) 3.33(2) 44
GLOBAL DIVIDEND GROWTH
1994*** 9.95 .31(1) 70,668 .55(2)(5) 4.96(2) 2
PACIFIC GROWTH
1994*** 9.33 (6.20) (1) 42,636 -0-(5) 2.17(2) 8
</TABLE>
- ------------
* March 1, 1990 (Commencement of Operations) through December 31, 1990.
** March 1, 1991 (Commencement of Operations) through December 31, 1991.
*** February 23, 1994 (Commencement of Operations) through June 30, 1994
(unaudited).
+ Does not reflect the deduction of sales load.
++ Distribution from capital.
+++ January 1, 1994 through June 30, 1994 (unaudited).
(1) Not annualized.
(2) Annualized.
(3) If the Investment Manager had not assumed all expenses and waived the
management fee for the periods March 1, 1990 through August 31, 1990 for
Utilities and March 1, 1990 through June 26, 1990 for Dividend Growth,
the ratio of expenses to average net assets would have been .75% ($.06)
for Utilities and .74% ($.05) for Dividend Growth.
(4) If the Investment Manager had not assumed all expenses and waived the
management fee for the period March 1, 1991 through December 31, 1991,
the ratio of expenses to average net assets would have been 1.60% ($.13)
for Capital Growth and 4.12% ($.32) for European Growth.
management fee for the periods February 23, 1994 through May 12, 1994 for
Global Dividend Growth and February 23, 1994 through June 30, 1994 for
Pacific Growth, the ratio of expenses to average net assets would have
been 1.12% ($.01) for Global Dividend Growth and 1.48% ($.03) for Pacific
Growth.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
Trustees
------------------------------------------------------
<TABLE>
<S> <C>
Jack F. Bennett Paul Kolton
Michael Bozic Michael E. Nugent
Charles A. Fiumefreddo Philip J. Purcell
Edwin J. Garn John L. Schroeder
John R. Haire Albert T. Sommers
Dr. John E. Jeuck Edward R. Telling
Dr. Manuel H. Johnson
</TABLE>
Officers
------------------------------------------------------
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
Thomas F. Caloia
TREASURER
<TABLE>
<S> <C>
Transfer Agent Independent Accountants
------------------------------------------- -------------------------------------------
Dean Witter Trust Company Price Waterhouse LLP
Harborside Financial Center--Plaza Two 1177 Avenue of the Americas
Jersey City, New Jersey 07311 New York, New York 10036
</TABLE>
Investment Manager
------------------------------------------------------
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
Sub-Advisor
(European Growth and Pacific Growth Portfolio)
------------------------------------------------------
Morgan Grenfell Investment Services Limited
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.
Fund unless preceded or accompanied by an effective prospectus.
<PAGE>
SEMIANNUAL REPORT
JUNE 30, 1994
SEMIANNUAL REPORT
JUNE 30, 1994
<TABLE>
<S> <C>
BULK RATE
U.S.
POSTAGE
PAID
PERMIT No.
461
FLUSHING,
N.Y.
BULK RATE
U.S.
POSTAGE
PAID
PERMIT No.
461
FLUSHING,
N.Y.
</TABLE>
<PAGE>
[Photo]
DEAN WITTER VARIABLE
INVESTMENT SERIES
[Photo]
SEMIANNUAL REPORT
JUNE 30, 1994
ALLSTATE LIFE INSURANCE
COMPANY OF NEW YORK
POST OFFICE BOX 2898
HUNTINGTON STATION, NY 11746
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 461
FLUSHING, N.Y.
<PAGE>
[Photo]
DEAN WITTER VARIABLE
INVESTMENT SERIES
[Photo]
SEMIANNUAL REPORT
JUNE 30, 1994
NORTHBROOK LIFE
INSURANCE COMPANY
P.O. BOX 94040
PALATINE, IL 60094-4040
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 461
FLUSHING, N.Y.
