<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
The continued strength of the U.S. economy and renewed inflationary fears
during the fourth quarter of 1994 prompted further monetary tightening by the
Federal Reserve Board. In November 1994, the central bank increased interest
rates for the sixth time since February, bringing the federal-funds and discount
rates to 5.50 percent and 4.75 percent, respectively. In response, the yield
curve -- the relationship of the yields on bonds of varying maturities --
continued to flatten (that is, yields on short-term bonds have moved much closer
to the yields available on longer-term securities, rendering longer-term bonds
less attractive relative to the increased risk involved). For example, on
December 31, 1994, the 30-year U.S. Treasury bond was yielding 7.88 percent,
versus 7.76 percent for the 2-year U.S. Treasury note. A year earlier, the 30-
and 2-year securities were yielding 6.35 percent and 4.23 percent, respectively.
With the U.S. economy maintaining momentum, on February 1, 1995, after the
close of the fiscal year under review, interest rates were increased for the
seventh time in 12 months, with the federal-funds and discount rates moving to
6.00 percent and 5.25 percent, respectively. According to many analysts, it is
likely that much of the ultimate restraining effect of the central bank's rate
increases has not yet been felt in the economy. Given this view, further, albeit
probably modest, tightening may occur.
During the fiscal year ended December 31, 1994, the stock and bond markets
traded in patterns consistent with these economic fundamentals, with bonds being
sold under pressure to avoid further price declines and stocks holding their own
on improving earnings expectations. At year-end, with the Standard & Poor's 500
Index selling at 13.5 times 1995 earnings expectations, the stock market's
downside appears to be limited, especially if long-term bonds continue to trade
below 8 percent.
Regrettably, the broader market averages did not tell the whole story of
last year's weak stock performance. A look at 2800 companies on the American and
New York Stock Exchanges and the National Association of Securities Dealers
Automated Quotations system (NASDAQ) -- many of which are represented in the
Portfolios -- reveals that since February 1994 (when the Federal Reserve Board
initiated its tighter monetary policy), 69 percent of these issues have
exhibited returns of zero percent or less. What's more, one-half of these stocks
experienced declines of at least 10 percent, while 30 percent were down more
than 20 percent.
In Europe, following a strong start in January 1994, equity markets were
undermined throughout the year by very weak bond markets. The rise in yields,
directly attributable to the U.S. market's turmoil, became a serious negative
influence. There were several noteworthy European markets in 1994. The Italian
market performed strongly, ahead of the election of Silvio Berlusconi and his
reformist coalition, but the honeymoon proved to be brief. The Nordic markets
also performed well, primarily on the basis of strong cyclical economic
recoveries.
Following a weak first quarter and strong second and third quarters, most
Far Eastern stock markets declined in the fourth quarter of 1994. The region's
sensitivity to the rising U.S. interest rates triggered a sharp correction in
several Asian markets. Hong Kong and Malaysia were hit particularly hard, with
large, liquid blue-chip stocks subject to selling pressure. By comparison,
Taiwan and Korea held up relatively well, buoyed by strong economic and
corporate data. As the interest rate environment stabilizes, strong earnings
growth should rekindle investor interest.
<PAGE>
MONEY MARKET PORTFOLIO
As of December 31, 1994, the Money Market Portfolio had net assets in excess
of $268 million with an average maturity of 42 days. The Portfolio's yield for
the fiscal year was 3.81 percent. At year-end, the portfolio's 7-day effective
yield was 5.34 percent.
Continuing the trend which began in early February, 1994, money market
yields climbed significantly during the second half of 1994. The yield on
three-month Treasury bills, for example, increased from 4.25 percent in early
July to over 5.50 percent in late December. Inflation rates have remained in
check, with consumer prices for 1994 rising by 2.7 percent.
At year end, approximately 81 percent of the Portfolio consisted of
high-quality commercial paper, with 5 percent invested in federal agency
obligations, 5 percent invested in short-term notes issued by major, financially
strong commercial banks, and the remaining 9 percent invested in bankers'
acceptances issued by such institutions.
More than 95 percent of the Portfolio's assets mature in less than three
months. Therefore, the Portfolio is well positioned to take advantage of any
further upward interest rate pressures and has a very high degree of liquidity.
We continue to operate the portfolio in a straightforward, conservative style
without "structured notes" or derivatives, which fluctuate excessively when
interest rates change.
The recent steepness of the money market yield curve has allowed us to
anticipate interest rate increases and maintain the Portfolio's average maturity
generally within a range of 40 to 75 days. The Portfolio continues to serve as a
very useful investment for liquidity, preservation of capital and a yield that
is reflective of prevailing money market conditions.
QUALITY INCOME PLUS PORTFOLIO
For the fiscal year, the Quality Income Plus Portfolio registered a total
return of -6.63 percent, versus -2.93 percent for the Lehman Brothers Mutual
Fund Aggregate Bond Index and -6.27 percent for the Lehman Brothers Long Single
A Corporate Index. The average corporate debt (A-rated) annuity fund returned
- -4.59 percent for the year. The Portfolio's underperformance relative to these
indexes reflects a focus on meeting long-term investment objectives with a
diversified portfolio of longer-term assets, with average maturities that may
exceed the comparative indexes and result in greater price volatility. As
mentioned earlier, this performance came during one of the worst periods for
fixed-income products in recorded bond market history. Indeed, even the
benchmark 10-year U.S. Treasury note registered a -7.85 percent return.
At year end, the Portfolio had net assets of $415 million. The Portfolio's
asset allocation on December 31, 1994 was approximately as follows: 52 percent
in corporate notes and bonds, 32 percent in U.S. government mortgage-backed
securities, 8 percent in U.S. government notes and bonds, 5 percent in "Yankee"
instruments (U.S. dollar-denominated bonds issued by sovereign entities), and 3
percent in cash equivalents.
The Federal Reserve Board's rapid interest rate hikes during a period of
strong economic growth created an environment in which fixed-income investors
limited their commitment to the long-term government and corporate bond markets.
This lack of sponsorship over the first 10 months of the year was not totally
recouped during the improved market conditions seen over the last two months of
1994. However, during the last quarter of the year, as concerns regarding
inflation were minimized by a modest 12-month increase in the consumer price
index (often referred to as the cost of living) of only 2.7 percent, investors
were once again attracted to the value of the long-term bond market.
A principal strategy during the fiscal year was to actively shift from
long-term U.S. Treasury and corporate bonds into higher-coupon mortgage-backed
securities and then reverse the allocation back into long term treasury bonds
and
<PAGE>
long term corporate bonds. This continued to generate a competitive current
income level and, we believe, positions the Portfolio for competitive returns
during the new fiscal year.
The chart below illustrates the growth of a $10,000 investment in the
Quality Income Plus Portfolio from inception (March 1, 1987) through the fiscal
year ended December 31, 1994, versus the performance of a similar hypothetical
investment in the issues that comprise the Lehman Brothers Mutual Fund Aggregate
Bond Index.
[CHART]
HIGH YIELD PORTFOLIO
The high-yield market was not immune to the difficulties encountered by
virtually all fixed-income products during the fiscal year ended December 31,
1994. Questions concerning the strength of the economy, inflation prospects,
interest rate levels and possible Federal Reserve Board action created an
uncomfortable level of uncertainty.
Reflecting this market weakness, the Lehman Brothers Mutual Fund
Corporate/High Yield Index posted a total return of -3.45 percent for the 12
months ended December 31, 1994, while the average high-yield annuity fund
returned -3.32 percent. Considering the difficult market environment, the
Portfolio performed relatively well, producing a total return of -2.47 percent
for the fiscal year.
The Portfolio began 1994 with a somewhat defensive posture. During the
second and third quarters, however, a shift toward a more aggressive stance in
which the Portfolio became a more active buyer was initiated. Throughout the
final three months of the year the Portfolio continued to favor B-rated issues,
which were deemed to be undervalued and offered an attractive yield advantage
relative to both higher-quality issues and U.S. Treasury securities. The
accompanying chart on the following page illustrates the growth of a $10,000
investment in the High Yield Portfolio for the 10-year period ended December 31,
1994, versus the performance of a similar hypothetical investment in the issues
that comprise the Lehman Brothers Mutual Fund Corporate/High Yield Index.
Looking ahead to 1995 and beyond, given our outlook for slower, but
continued growth in the economy, we find that today's B-rated issues (now
yielding more than 600 basis points, 6 percent, over U.S. Treasury securities
and trading at steep discounts) offer excellent long-term return potential. Over
the near-term, we expect continued volatility in the financial markets, as
investors attempt to assess the economy's strength, the level of interest rates
and possible further Federal Reserve Board actions. Despite possible short-term
weakness, the high-yield market appears to hold attractive long-term
opportunities for investors. Current high-yield issues provide an exceptionally
large yield advantage over U.S. Treasury securities, with the potential for
substantial capital appreciation when the market rebounds.
<PAGE>
[CHART]
UTILITIES PORTFOLIO
The Utilities Portfolio encountered market pressure from a combination of
higher interest rates and the continuing threat and uncertainty associated with
competition throughout the utilities industry. Although improved from mid-year
total return results (when the Portfolio experienced a decline of 11.13 percent
through the first six months of 1994), total return for the full fiscal year
ended December 31 was a disappointing -9.02 percent. In contrast, the Standard &
Poor's 500 Index (S&P 500) registered a modest total return of 1.31 percent. In
our opinion, the improved second-half performance reflected in part a somewhat
more rational view among investors of the long-term outlook for electric
utilities, a perspective that we anticipate will continue going forward. The
Portfolio's underperformance of the S&P 500 is reflective of the continuation of
higher interest rates and the broad-based uncertainty regarding competition
within the electric and telecommunications industries.
Combined with the expectation of an improving interest rate environment,
electric utilities should be more supportive of the Portfolio's overall return
in 1995. Based on these assumptions, we plan to at least maintain the
Portfolio's electric utilities allocation at current levels and will continue to
focus on the companies we believe to be competitive. Depending on any
significant shift in fundamentals within the natural gas and telecommunications
sectors, modest modifications to the Portfolio's asset allocation to these
groups is likely.
During the fiscal year, the Portfolio's investment allocation showed an
increase in the telecommunications sector and declines in both the electric and
natural gas industries. Specifically, the overall year-end asset allocation was
89 percent equities; 10 percent fixed-income; and 1 percent cash. Electric
utilities remained the dominant equity sector at 44 percent (3 percent more than
the allocation to that group as of December 31, 1993). In contrast,
telecommunications investments, which provide attractive diversification and
potential growth characteristics, increased 2 percent to 33 percent. The balance
of the equity portfolio at year-end -- 13 percent -- was allocated the natural
gas sector. Foreign securities represented 5 percent of net assets, with an
emphasis on telecommunications. The chart at right illustrates the growth of a
$10,000 investment in the Utilities Portfolio from inception (March 1, 1990)
through the fiscal year ended December 31, 1994, versus a similar hypothetical
investment in the issues that comprise the Standard & Poor's 500 Index.
<PAGE>
[CHART]
DIVIDEND GROWTH PORTFOLIO
On December 31, 1994, Dividend Growth Portfolio had net assets in excess of
$572 million, an increase of approximately $90 million from the start of the
year. For the full year, the Portfolio produced a total return of -3.27 percent,
versus 1.31 percent for the S&P 500. The reason for this lag in performance was
primarily the negative impact the sharp rise in interest rates had on the
Portfolio's interest-rate sensitive holdings. In order to improve relative
performance in the future, we have repositioned the Portfolio so that fewer
assets are committed to interest-rate sensitive and cyclical issues and,
therefore, more are committed to growth-type issues. The chart below illustrates
the growth of a $10,000 investment in the Dividend Growth Portfolio from
inception (March 1, 1990) through the fiscal year ended December 31, 1994,
versus a similar hypothetical investment in the issues that comprise the
Standard & Poor's 500 Index.
Common stock positions added to the Portfolio during the year included
Eastman Chemical, Phelps Dodge and May Department Stores. Portfolio positions
eliminated included PPG Industries, Woolworth and Georgia Pacific. As of
December 31, the Portfolio consisted of 46 equity issues spread among 29
different industry groups, plus 6 U.S. Treasury note and bond issues.
[CHART]
<PAGE>
CAPITAL GROWTH PORTFOLIO
The Capital Growth Portfolio's net assets exceeded $45 million on December
31, 1994. For the full fiscal year, the Portfolio's total return was -1.28
percent, versus 1.31 percent for the S&P 500. This relative underperformance is
attributable to the lackluster performance of growth stocks in general relative
to the performance of cyclical and basic industry stocks. Going forward, we are
confident that the slight modification to the Portfolio's screening process,
through which a broader list of stocks qualify for inclusion in the Portfolio,
is having and will continue to have a more favorable impact on relative
performance. The chart at right illustrates the growth of a $10,000 investment
in the Capital Growth Portfolio from inception (March 1, 1991) through the
fiscal year ended December 31, 1994, versus a similar hypothetical investment in
the issues that comprise the Standard & Poor's 500 Index.
At year end, the Portfolio held 44 stocks spread among 31 industries. During
the year, the Portfolio sold positions in EG&G, Tyson Foods Class A, Nalco
Chemical, Dillards Department Stores, Block Drug Class A and J.M. Smucker Class
A&B. New additions included the common stocks of Coca-Cola, Schering-Plough,
Federal National Mortgage, Sherwin-Williams, American Barrick Resources, Loral
and Microsoft.
[CHART]
GLOBAL DIVIDEND GROWTH PORTFOLIO
The Global Dividend Growth Portfolio commenced operations on February 23,
1994, with total net assets under management of approximately $3 million. By
December 31, 1994, net assets under management had grown to more than $138
million.
From the inception date through December 31, 1994, the Portfolio recorded a
cumulative total return of 0.27 percent, versus -0.42 percent for the Morgan
Stanley Capital International World Index (MSCI). This relative outperformance
is attributable, in our judgment, to the Portfolio's proprietary screening
process, along with the weakness of the U.S. dollar relative to several of the
world's other major currencies. Reflecting market conditions in the fourth
quarter of 1994, the Portfolio increased its allocation to Hong Kong by one full
percentage point and reduced its exposure to France and Germany by
<PAGE>
one-half percentage point each. The chart below illustrates the growth of a
$10,000 investment in the Global Dividend Growth Portfolio from inception
through December 31, 1994, versus a similar hypothetical investment in the
issues that comprise the MSCI.
During the Portfolio's short life, assets have been committed to 79 common
and preferred stock issues in the following 12 countries: Australia, Canada,
France, Germany, Hong Kong, Malaysia, Italy, Japan, The Netherlands,
Switzerland, the United Kingdom and the United States. The Portfolio was fully
invested at the end of the fiscal year.
[CHART]
EUROPEAN GROWTH PORTFOLIO
The European Growth Portfolio produced a total return for the fiscal year
ended December 31, 1994 of 8.36 percent, versus 1.31 percent for the S&P 500 and
- -0.42 percent for the Morgan Stanley Capital International World Index (MSCI).
Net assets exceeded $152 million at year-end.
As a result of many European countries coming out of recession, more
companies have refocused on profitability and renewed commitments to shareholder
values. At year-end, the Portfolio remained fully invested in a broad range of
stocks, seeking those with solid growth characteristics. Key holdings included
Nokia, a Finnish telecommunications equipment company, Mo Och Domsjoe, a Swedish
forest products company; British Petroleum, a major British oil company; and
Holderbank, a Swiss cement company. The chart on the following page illustrates
the growth of a $10,000 investment in the European Growth Portfolio from
inception (March 1, 1991) through the fiscal year ended December 31, 1994,
versus a similar hypothetical investments in the issues that comprise the S&P
500 and the MSCI. In last year's annual letter, dated December 31, 1993, we
compared the Portfolio's performance to that of the S&P 500 only. This year we
felt it would be appropriate to also show the results posted by the MSCI, a
broad-based global stock market index, which is more reflective of the
Portfolio. See the chart at right for a complete description of the MSCI.
The prospects for a continuation of the economic recovery in Europe are
good. Many countries, such as France, Germany and Sweden, are in the midst of
export-led recoveries and should shift to investment- and consumer-led
recoveries in 1995 and 1996. The outlook for corporate earnings remains positive
and should benefit the Portfolio going forward.
<PAGE>
[CHART]
PACIFIC GROWTH PORTFOLIO
The Pacific Growth Portfolio commenced operations on February 23, 1994. From
inception through December 31, 1994, the Portfolio posted a cumulative total
return of -6.73 percent, versus -0.42 percent for the Morgan Stanley Capital
International World Index (MSCI).
In its brief existence, the Portfolio underperformed primarily because of
the regionwide compression of company price/earnings ratios, a result of higher
interest rates in the U.S. The stock valuation excesses seen earlier in 1994 had
come down by year-end, with some markets as much as 35 percent off the highs
reached in January. The chart below illustrates the growth of a $10,000
investment in the Pacific Growth Portfolio from inception through December 31,
1994, versus a similar hypothetical investment in the issues that comprise the
MSCI.
The Portfolio remains overweighted in smaller regional markets, with
exposure to Malaysia and Hong Kong relatively low. However, following the very
sharp pullback in Hong Kong, stock valuations have fallen to attractive levels
and a reallocation to that market is anticipated. The Japanese position remains
low, reflecting the superior growth potential of the smaller "TIGER" economies
(Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan
and Thailand).
[CHART]
<PAGE>
EQUITY PORTFOLIO
For the fiscal year, the Equity Portfolio posted a total return of -4.91
percent, versus 1.31 percent for the S&P 500 and -3.20 percent for the NASDAQ
composite. Despite 1994's disappointing results, the Portfolio's long-term track
record remains impressive: Since inception the Portfolio has produced an average
annual total return of 12.09 percent. The chart on the following page
illustrates the performance of a $10,000 investment in the Equity Portfolio over
the 10-year period ended December 31, 1994, versus the performance of a similar
hypothetical investment in the issues that comprise the Standard & Poor's 500
index.
Growth stocks as a class -- and the growth funds that own them --
underperformed during the fiscal year ended December 31, 1994. Growth issues,
which generally grow earnings at rates ranging between 15 percent and 25 percent
were unable to compete with basic cyclicals, many of which showed earnings gains
ranging from 100 percent to 500 percent.
The Portfolio did not initially rotate into cyclical issues when the Federal
Reserve Board began tightening monetary policy in February 1994. This cost the
Fund significant performance. Rather, we chose to be conservative and wait to
see if the discount rate would also be raised (at first, the central bank's
strategy was to raise the federal-funds rate). When the discount rate was
increased in May 1994, we repositioned the Portfolio half in cyclicals, to take
advantage of robust economic growth, and half in growth stocks, in anticipation
of an economic slowdown. A second portfolio rotation was initiated in October
1994 when the yield curve went flat, suggesting the economy was about to enter
the slowdown phase (see page 1, paragraph 1, for an explanation of a
"flattening" yield curve). At that point, the Portfolio exited cyclicals and
went full tilt into growth stocks. We expect to remain in growth stocks,
particularly the consumer staple, media, health care, interest-rate sensitive
and technology areas, through 1995.
Financial crises, such as those seen recently in Orange County, California
and Mexico, historically have occurred near the peak in interest rates. As a
result, above-average cash levels maintained by the Portfolio near year-end have
since been redeployed as we now believe any further tightening moves by the
Federal Reserve Board will be more muted. Moreover, recent limited economic data
suggest the central bank's moves may be starting to impact consumer spending.
While 1994 was disappointing for growth funds in general and the Portfolio
in particular, we believe 1995 holds good promise. As mentioned earlier, growth
stocks underperformed in 1994 as companies in these sectors lost their relative
earnings advantage. However, as overall corporate earnings slow from the 20
percent to 25 percent range to between 5 percent and 10 percent, growth stocks,
with their 15 percent to 25 percent growth rates, will likely regain their
earnings advantage in 1995. Additionally, as the economy slows, interest rates
should begin receding. Historically, when interest rates decline, price/earnings
(P/E) ratios expand, particularly for growth stocks, which traditionally support
higher P/E ratios because they possess higher long-term growth rates.
<PAGE>
[CHART]
MANAGED ASSETS PORTFOLIO
Managed Assets Portfolio ended the fiscal year with a total return of 3.94
percent. This performance was modestly better than the 1.31 percent available
from the S&P 500 and significantly better than the -12.03 percent total return
registered by the 30-year U.S. Treasury bond. The Portfolio outperformed in 1994
by striving to protect investors' assets. On average, the Portfolio's asset
allocation for the year was 24 percent equities, 6 percent bonds and 70 percent
cash.
The Portfolio ended 1993 with 50 percent of its assets invested in equities,
10 percent in bonds and 40 percent in cash. This allocation reflected the very
low yields available from both stocks (2.68 percent from the S&P 500) and bonds
(6.35 percent from the 30-year U.S. Treasury bond). Beginning in February 1994,
however, higher interest rates suggested an investment posture that was even
more defensive. In March, the allocation was changed to 40 percent equities, 10
percent bonds and 50 percent cash. We took the Portfolio to 20 percent equities,
5 percent bonds and 75 percent cash in May, and finally to 100 percent cash in
August, where the allocation remained at year-end.
The unprecedented move out of the market in August was based on the very
high risk level of the financial markets, as measured by our proprietary asset
allocation model. Among other factors, the Federal Reserve Board's continual
tightening, the relatively low yield offered by stocks, and the rapid rise in
both short- and long-term interest rates, combined to give the market a risk
level that appeared to far outweigh the potential rewards. The chart at right
illustrates the performance of a $10,000 investment in the Managed Assets
Portfolio since inception (March 1, 1987) through the fiscal year ended December
31, 1994, versus the performance of a similar hypothetical investment in the
issues that comprise the Standard & Poor's 500 Index.
While it is too early to tell, we expect the Federal Reserve Board's
tightening in 1994 to sufficiently slow the economy in 1995, and ultimately
produce lower interest rates and an improved investment climate. Until then, we
will continue to emphasize the preservation of assets and will defer investments
until prices are lower or the risk/reward outlook is improved.
<PAGE>
[CHART]
We appreciate your support of Dean Witter Variable Investment Series and
look forward to continuing to serve your financial objectives.
Very truly yours,
[LOGO]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
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<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT (IN ON DATE OF MATURITY
THOUSANDS) PURCHASE DATES VALUE
- ----------- --------------- ---------------------- ---------------
<C> <S> <C> <C> <C>
SHORT-TERM BANK NOTES (5.2%)
BANKS - COMMERCIAL (5.2%)
$ 7,000 First National Bank of Chicago.................... 5.06% 01/09/95 $ 7,000,000
7,000 NBD Bank.......................................... 5.06 01/06/95 7,000,000
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TOTAL SHORT-TERM BANK NOTES (AMORTIZED COST $14,000,000)................................... 14,000,000
---------------
BANKERS' ACCEPTANCES (A) (8.8%)
BANKS - COMMERCIAL (8.8%)
11,000 Bank of America NT & SA........................... 6.22 03/16/95 10,859,292
7,000 First Bank National Association................... 5.53 02/17/95 6,949,320
3,000 First Union National Bank of N.C.................. 6.22 03/06/95 2,966,742
3,000 U.S. Bank of Washington, N.A...................... 6.39 04/18/95 2,943,660
---------------
TOTAL BANKERS' ACCEPTANCES (AMORTIZED COST $23,719,014).................................... 23,719,014
---------------
COMMERCIAL PAPER (A) (81.5%)
AUTOMOTIVE FINANCE (15.1%)
12,575 Chrysler Financial Corp........................... 5.58 to 5.78 01/30/95 to 02/09/95 12,505,075
10,860 Daimler-Benz North America........................ 5.58 to 6.14 02/08/95 to 02/27/95 10,785,063
5,610 Ford Motor Credit Company......................... 5.16 to 6.03 01/05/95 to 01/13/95 5,602,617
11,865 General Motors Acceptance Corp.................... 6.19 to 6.27 02/07/95 to 02/27/95 11,776,722
---------------
40,669,477
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BANK HOLDING COMPANIES (14.7%)
6,285 Chase Manhattan Corp.............................. 5.38 01/23/95 6,263,799
10,210 Chemical Banking Corp............................. 5.50 to 5.89 02/21/95 to 02/22/95 10,127,990
2,000 First Union Corp.................................. 6.22 03/06/95 1,977,828
5,000 Morgan (J.P.) & Co................................ 6.12 03/01/95 4,949,750
3,540 Norwest Corp...................................... 5.63 02/13/95 3,516,030
9,660 PNC Funding Corp.................................. 6.00 to 6.26 02/14/95 to 02/23/95 9,578,991
3,000 Republic New York Corp............................ 5.24 02/15/95 2,980,373
---------------
39,394,761
---------------
BANKS - COMMERCIAL (10.9%)
3,000 Abbey National North America Corp................. 6.31 02/28/95 2,969,468
2,525 ABN AMRO N.A. Fin. Inc............................ 6.12 04/24/95 2,477,265
7,000 Barclays U.S. Funding Co.......................... 5.14 01/17/95 6,983,307
3,960 National Australia Funding, Inc. (Del.)........... 5.57 02/01/95 3,940,745
6,000 National Westminster BanCorp Inc.................. 5.47 01/24/95 5,978,480
7,070 Toronto Dominion Holdings (USA), Inc.............. 6.30 03/06/95 6,990,728
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29,339,993
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BROKERAGE (4.8%)
13,055 Goldman Sachs Group L.P........................... 5.53 to 6.23 01/10/95 to 03/20/95 12,958,981
---------------
CANADIAN GOVERNMENT (1.4%)
3,700 Province of British Columbia...................... 5.07 01/25/95 3,687,280
---------------
FINANCE - CORPORATE (4.6%)
12,400 Ciesco, L.P....................................... 5.08 to 6.17 02/01/95 to 02/24/95 12,312,480
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT (IN ON DATE OF MATURITY
THOUSANDS) PURCHASE DATES VALUE
- ----------- --------------- ---------------------- ---------------
<C> <S> <C> <C> <C>
FINANCE - DIVERSIFIED (20.6%)
$ 2,500 Associates Corp. of N.A........................... 5.66% 01/04/95 $ 2,498,442
10,105 CIT Group Holdings Inc............................ 5.36 to 5.60 01/11/95 to 01/12/95 10,087,350
2,275 Commercial Credit Co.............................. 5.60 02/03/95 2,263,140
12,295 General Electric Capital Corp..................... 5.02 to 6.74 01/19/95 to 06/14/95 12,216,218
9,385 Heller Financial Inc.............................. 5.41 to 6.22 01/18/95 to 02/14/95 9,335,271
6,525 Household Finance Corp............................ 5.48 to 5.52 01/13/95 to 01/27/95 6,501,473
12,495 ITT Financial Corp................................ 5.56 to 6.14 01/05/95 to 02/09/95 12,444,294
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55,346,188
---------------
FINANCE - EQUIPMENT (3.1%)
8,310 Deere (John) Capital Corp......................... 5.11 to 5.91 01/20/95 to 02/23/95 8,254,281
---------------
OFFICE EQUIPMENT (1.7%)
4,500 Pitney Bowes Credit Corp.......................... 6.14 02/22/95 4,459,786
---------------
OFFICE EQUIPMENT & SUPPLIES (3.7%)
9,930 International Business Machines Corp.............. 5.56 to 6.03 02/02/95 to 02/03/95 9,877,084
---------------
RETAIL (0.9%)
2,500 Penney (J.C.) Funding Corp........................ 5.87 02/06/95 2,485,097
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $218,785,408)....................................... 218,785,408
---------------
U.S. GOVERNMENT AGENCIES (A) (4.6%)
4,000 Federal Farm Credit Bank.......................... 5.83 07/05/95 3,884,680
8,580 Federal Home Loan Banks........................... 5.75 01/03/95 8,575,889
---------------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $12,460,569)................................ 12,460,569
---------------
TOTAL INVESTMENTS (AMORTIZED COST $268,964,991) (B)............................................. 100.1 % 268,964,991
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.................................................. (0.1) (340,538)
------ ---------------
NET ASSETS...................................................................................... 100.0 % $ 268,624,453
------ ---------------
------ ---------------
<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 DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ------------- ---------- ---------------------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (52.1%)
AUTOMOTIVE (1.0%)
$ 3,000 Ford Motor Co......................................... 9.50% 09/15/11 $ 3,230,100
1,000 Ford Motor Co......................................... 8.875 01/15/22 1,013,570
---------------
4,243,670
---------------
BANK HOLDING COMPANIES (13.6%)
1,000 Banc One Corp......................................... 8.74 09/15/03 1,006,100
2,000 Banc One, Milwaukee, NA............................... 6.625 04/15/03 1,771,900
1,000 BankAmerica Corp...................................... 9.625 02/13/01 1,046,070
1,000 BankAmerica Corp...................................... 7.75 07/15/02 950,020
1,000 BankAmerica Corp...................................... 7.875 12/01/02 955,230
2,000 Boatmen's Bancshares, Inc............................. 9.25 11/01/01 2,067,560
2,000 Boatmen's Bancshares, Inc............................. 6.75 03/15/03 1,782,580
3,000 Chemical Banking Corp................................. 7.875 07/15/06 2,817,600
7,000 Citicorp.............................................. 7.750 06/15/06 6,537,090
1,000 Comerica, Inc......................................... 7.250 10/15/02 925,650
1,000 CoreStates Financial Corp............................. 9.625 02/15/01 1,048,500
6,000 First Bank N.A........................................ 8.35 11/01/04 5,911,380
5,000 First Union Corp...................................... 8.00 08/15/09 4,627,000
4,000 Fleet Mortgage Group, Inc............................. 6.50 09/15/99 3,687,560
2,000 Golden West Financial Corp............................ 7.00 01/15/00 1,871,840
3,500 Household Bank........................................ 8.45 12/10/02 3,500,140
2,000 Huntington National Bank.............................. 7.625 01/15/03 1,880,200
3,000 Marshall & Ilsley Corp................................ 6.375 07/15/03 2,603,370
3,145 PNC Funding Corp...................................... 9.875 03/01/01 3,325,995
1,000 Republic NY Corp...................................... 7.875 12/12/01 969,210
1,000 Society National Bank................................. 7.85 11/01/02 959,000
5,000 State Street Boston Corp.............................. 5.95 09/15/03 4,234,100
2,000 Wachovia Corp......................................... 6.375 04/15/03 1,753,480
---------------
56,231,575
---------------
BROADCAST MEDIA (0.2%)
1,000 Paramount Communications, Inc......................... 8.25 08/01/22 843,790
---------------
BROKERAGE (1.2%)
1,000 Morgan Stanley Group, Inc............................. 9.25 03/01/98 1,021,700
5,000 Morgan Stanley Group, Inc............................. 7.25 10/15/23 4,013,500
---------------
5,035,200
---------------
FINANCE & BROKERAGE (4.3%)
2,000 American Express Co................................... 8.625 05/15/22 1,934,980
1,000 Associates Corp. North America........................ 6.75 10/15/99 936,610
1,000 Bear Stearns Companies, Inc........................... 9.125 04/15/98 1,011,700
3,000 Equifax, Inc.......................................... 6.50 06/15/03 2,664,240
3,500 Household Financial Corp.............................. 7.75 06/01/99 3,419,710
2,000 Household Financial Corp.............................. 8.95 09/15/99 2,042,600
3,000 Source One Mortgage Services Corp..................... 9.00 06/01/12 2,996,100
3,000 Travelers, Inc........................................ 7.75 06/15/99 2,919,990
---------------
17,925,930
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ------------- ---------- ---------------------- ---------------
<C> <S> <C> <C> <C>
FOOD SERVICES (0.7%)
$ 2,000 Grand Metropolitan Investment Corp.................... 8.00% 09/15/22 $ 1,871,060
1,000 McDonald's Corp....................................... 8.875 04/01/11 1,042,080
---------------
2,913,140
---------------
FOODS (0.3%)
2,000 Archer-Daniels-Midland Co............................. 0.00 05/01/02 1,097,520
---------------
HEALTH CARE DIVERSIFIED (0.8%)
2,000 Kaiser Foundation Health Plan, Inc.................... 9.00 11/01/01 2,073,380
1,000 Kaiser Foundation Health Plan, Inc.................... 9.55 07/15/05 1,081,280
---------------
3,154,660
---------------
INDUSTRIALS (10.7%)
1,000 B.P. North America, Inc............................... 7.875 05/15/02 976,330
1,000 Boeing Co............................................. 7.95 08/15/24 961,180
2,000 Burlington Resources, Inc............................. 7.15 05/01/99 1,915,620
1,000 Burlington Resources, Inc............................. 8.50 10/01/01 1,004,810
5,000 Carnival Corp......................................... 7.70 07/15/04 4,720,050
1,000 Caterpillar, Inc...................................... 9.375 07/15/01 1,048,060
3,000 Caterpillar, Inc...................................... 9.375 08/15/11 3,227,190
3,000 Caterpillar, Inc...................................... 8.00 02/15/23 2,785,260
1,000 Corning, Inc.......................................... 8.875 08/15/21 1,021,760
1,000 Dow Capital BV........................................ 8.70 05/15/22 973,120
2,000 Kimberly-Clark Corp................................... 7.875 02/01/23 1,844,540
1,000 Knight Ridder, Inc.................................... 8.50 09/01/01 1,007,350
5,000 Lockheed Corp......................................... 7.875 03/15/23 4,457,250
1,000 Maytag Corp........................................... 9.75 05/15/02 1,062,680
1,000 Motorola, Inc......................................... 7.60 01/01/07 943,720
1,000 PepsiCo, Inc.......................................... 6.25 09/01/99 924,380
5,000 Phillip Morris Companies, Inc......................... 7.50 01/15/02 4,682,300
2,000 Phillip Morris Companies, Inc......................... 7.25 01/15/03 1,826,440
2,500 Supervalu, Inc........................................ 7.25 07/15/99 2,408,800
3,500 Westvaco Corp......................................... 7.75 02/15/23 3,164,700
4,000 Weyerhaeuser Co....................................... 7.25 07/01/13 3,530,240
---------------
44,485,780
---------------
OIL INTEGRATED - DOMESTIC (0.4%)
735 Mobil Oil Corp........................................ 9.17 02/29/00 749,612
1,000 Texaco Capital, Inc................................... 9.75 03/15/20 1,110,410
---------------
1,860,022
---------------
PHARMACEUTICALS (2.3%)
5,000 Johnson & Johnson..................................... 8.72 11/01/24 5,083,050
856 Marion Merrell Corp................................... 9.11 08/01/05 881,704
1,000 McKesson Corp......................................... 8.625 02/01/98 1,004,820
3,000 Zeneca Wilmington, Inc................................ 7.00 11/15/23 2,487,030
---------------
9,456,604
---------------
REAL ESTATE INVESTMENT TRUST (1.0%)
5,000 Kimco Realty Corp..................................... 6.50 10/01/03 4,329,150
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ------------- ---------- ---------------------- ---------------
<C> <S> <C> <C> <C>
RETAIL (3.0%)
$ 1,000 Dayton-Hudson Corp.................................... 9.00% 10/01/21 $ 1,013,690
1,000 Dayton-Hudson Corp.................................... 8.50 12/01/22 953,640
1,000 Penny (J.C.) Company, Inc............................. 5.375 11/15/98 908,820
1,000 Penny (J.C.) Company, Inc............................. 9.75 06/15/21 1,062,710
1,000 Penny (J.C.) Company, Inc............................. 8.25 08/15/22 960,810
3,000 Wal-Mart Stores, Inc.................................. 7.49 06/21/07 2,802,690
5,000 Wal-Mart Stores, Inc.................................. 8.50 09/15/24 4,917,900
---------------
12,620,260
---------------
TELEPHONES (3.0%)
2,000 AT&T Corp............................................. 7.50 06/01/06 1,877,420
5,000 Bellsouth Telecommunications.......................... 6.75 10/15/33 3,949,700
1,000 GTE Corp.............................................. 10.25 11/01/20 1,079,770
1,000 GTE Corp.............................................. 8.75 11/01/21 985,260
5,000 New York Telephone.................................... 7.625 02/01/23 4,380,850
---------------
12,273,000
---------------
TRANSPORTATION (1.2%)
1,000 AMR Corp.............................................. 10.20 03/15/20 976,490
1,000 Consolidated Rail Corp................................ 9.75 06/15/20 1,116,430
1,000 Delta Air Lines, Inc.................................. 10.375 02/01/11 977,940
2,000 Union Pacific Corp.................................... 7.875 02/01/23 1,796,420
---------------
4,867,280
---------------
UTILITIES - ELECTRIC (7.1%)
1,000 Chugach Electric Company.............................. 9.14 03/15/22 1,017,690
5,000 Duke Power Co......................................... 7.00 07/01/33 4,109,350
2,000 Florida Power & Light Co.............................. 7.875 01/01/13 1,844,000
2,000 Georgia Power Co...................................... 8.625 06/01/22 1,923,240
1,000 Houston Lighting & Power Co........................... 8.75 03/01/22 982,230
2,000 Houston Lighting & Power Co........................... 7.75 03/15/23 1,770,260
5,000 Northern States Power Co.............................. 7.25 03/01/23 4,240,350
5,000 Pennsylvania Power & Light Co......................... 7.70 10/01/09 4,896,000
3,000 Public Service Electric & Gas Co...................... 7.875 11/01/01 2,906,910
7,000 Southern Caliornia Edison Co.......................... 7.25 03/01/26 5,854,730
---------------
29,544,760
---------------
WASTE DISPOSAL (1.3%)
5,000 Browning Ferris Industries............................ 9.25 05/01/21 5,194,850
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $228,554,277)...................................... 216,077,191
---------------
U.S. GOVERNMENT AGENCIES & OBLIGATION (39.9%)
20,511 Federal Home Loan Mortgage Corp....................... 8.00 01/01/22 to 12/01/24 19,671,243
10,000 Federal Home Loan Mortgage Corp....................... 8.50 01/01/22 to 12/01/24 9,837,502
42 Federal Home Loan Mortgage Corp....................... 11.50 06/01/11 to 05/01/19 45,509
5,000 Federal National Mortgage Association (Principal
Strip).............................................. 0.00 10/09/19 671,090
15,059 Federal National Mortgage Association................. 7.00 01/01/24 to 06/01/24 13,666,116
25,409 Federal National Mortgage Association................. 7.50 06/01/23 to 11/01/24 23,725,745
16,032 Federal National Mortgage Association................. 8.00 05/01/16 to 10/01/24 15,355,340
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATES VALUE
- ------------- ---------- ---------------------- ---------------
<C> <S> <C> <C> <C>
$ 2,000 Federal National Mortgage Association (Principal
Strip).............................................. 0.00% 08/21/01 $ 1,709,062
17,261 Government National Mortgage Association.............. 7.00 01/15/23 to 11/15/24 15,491,378
25,353 Government National Mortgage Association.............. 7.50 06/15/22 to 06/15/24 23,522,675
4,868 Government National Mortgage Association.............. 8.00 01/15/22 to 08/15/24 4,653,367
839 Government National Mortgage Association.............. 8.50 01/15/17 to 11/15/21 824,259
5,000 Government National Mortgage Association.............. 9.00 * 5,043,750
376 Government National Mortgage Association.............. 9.50 07/15/17 to 04/15/20 387,445
298 Government National Mortgage Association.............. 10.00 05/15/16 to 04/15/19 312,855
1,800 Private Export Funding Services....................... 5.48 09/15/03 1,641,348
1,000 Student Loan Marketing Association.................... 12.05 03/19/96 713,750
21,000 Tennessee Valley Authority............................ 7.85 06/15/44 18,749,083
10,000 U.S. Treasury Bond.................................... 7.50 11/15/24 9,559,375
---------------
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATION
(IDENTIFIED COST $169,136,949).......................................................... 165,580,892
---------------
FOREIGN GOVERNMENT AGENCIES & OBLIGATIONS (5.2%)
1,000 Hydro-Quebec.......................................... 8.25 01/15/27 914,560
5,000 Hydro-Quebec.......................................... 9.50 11/15/30 5,218,950
5,000 Italy-Republic........................................ 6.875 09/27/23 3,911,500
3,000 Province of Manitoba.................................. 6.875 09/15/02 2,743,050
5,000 Province of New Brunswick............................. 7.625 06/29/04 4,752,550
5,000 Quebec Province CDA................................... 7.50 07/15/23 4,232,900
---------------
TOTAL FOREIGN GOVERNMENT AGENCIES & OBLIGATIONS
(IDENTIFIED COST $24,136,480)........................................................... 21,773,510
---------------
SHORT-TERM INVESTMENTS (2.5%)
U.S.GOVERNMENT OBLIGATION (A) (1.4%)
6,000 U.S. Treasury Bill.................................... 5.31 08/24/95 5,745,356
---------------
COMMERCIAL PAPER (A) (0.9%)
FINANCE - ENERGY
3,800 Exxon Credit Corp..................................... 5.78 01/03/95 3,798,780
---------------
REPURCHASE AGREEMENT (0.2%)
724 The Bank of New York (dated 12/30/94; proceeds
$723,834; collateralized by $758,314 U.S. Treasury
Bill 6.43% due 06/08/95 valued at $738,055)......... 3.125 01/03/95 723,583
---------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $10,314,583)................................ 10,267,719
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $432,142,289) (B)............................................. 99.7 % 413,699,312
OTHER ASSETS IN EXCESS OF LIABILITIES............................................................ 0.3 1,205,600
------ ---------------
NET ASSETS....................................................................................... 100.0 % $ 414,904,912
------ ---------------
------ ---------------
<FN>
- ----------------
* SECURITIES WERE PURCHASED ON A FORWARD COMMITMENT BASIS WITH AN
APPROXIMATE PRINCIPAL AMOUNT AND NO DEFINITE MATURITY DATE, THE ACTUAL
PRINCIPAL AMOUNT AND MATURITY DATE WILL BE DETERMINED UPON SETTLEMENT.
(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
$434,182,320; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,397,840
AND THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $21,880,848, RESULTING
IN NET UNREALIZED DEPRECIATION OF $20,483,008.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ------------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (81.8%)
AEROSPACE (1.2%)
$ 1,500 Sabreliner Corp. (Series B)...................................... 12.50 % 04/15/03 $ 1,335,000
---------------
AIRLINES (3.4%)
5,000 GPA Delaware, Inc................................................ 8.75 12/15/98 3,825,000
---------------
AUTOMOTIVE (1.4%)
2,000 Envirotest Systems Corp. ........................................ 9.625 04/01/03 1,590,000
---------------
CABLE & TELECOMMUNICATIONS (1.4%)
3,000 Marcus Cable Co. ................................................ 13.50 ++ 08/01/04 1,582,500
---------------
CHEMICALS (1.6%)
1,791 Georgia Gulf Corp. .............................................. 15.00 04/15/00 1,831,297
---------------
COMPUTER EQUIPMENT (2.9%)
3,000 Unisys Corp. .................................................... 13.50 07/01/97 3,225,000
---------------
CONSUMER PRODUCTS (4.2%)
2,000 Icon Health & Fitness, Inc. (Units)++ - 144A**................... 13.00 07/15/02 1,970,000
1,850 J.B. Williams Holdings, Inc. .................................... 12.50 * 03/01/04 1,776,000
1,000 Thermoscan, Inc. (Units)++ - 144A**.............................. 11.75 * 08/15/01 1,000,000
---------------
4,746,000
---------------
CONTAINERS (1.1%)
3,000 Ivex Holdings Corp. (Series B)................................... 13.25 ++ 03/15/05 1,275,000
---------------
ELECTRICAL & ALARM SYSTEMS (1.9%)
3,000 Mosler, Inc. .................................................... 11.00 04/15/03 2,100,000
---------------
ENTERTAINMENT/GAMING & LODGING (9.9%)
1,000 Fitzgeralds Gaming Corp. - 144A**................................ 13.50 * 03/15/96 540,000
3,000 Motels of America, Inc. ......................................... 12.00 04/15/04 3,037,500
7,517 Spectravision, Inc. ............................................. 11.65 + 12/01/02 1,343,664
2,000 Trump Castle Funding, Inc. ...................................... 11.75 11/15/03 1,050,000
5,761 Trump Plaza Holding Assoc. ...................................... 12.50 + 06/15/03 5,069,561
---------------
11,040,725
---------------
FOODS & BEVERAGES (5.4%)
3,000 Envirodyne Industries, Inc. ..................................... 10.25 12/01/01 2,160,000
9,000 Specialty Foods Acquisition Corp. (Series B) ................... 13.00 ++ 08/15/05 3,870,000
---------------
6,030,000
---------------
FOREST & PAPER PRODUCTS (1.8%)
2,000 Fort Howard Corp. ............................................... 14.125 11/01/04 2,005,000
---------------
MANUFACTURING (5.1%)
3,000 Berry Plastics Corp. ............................................ 12.25 04/15/04 2,932,500
2,000 MS Essex Holdings, Inc. ......................................... 16.00 ++ 05/15/04 1,950,000
1,000 Uniroyal Technology Corp. ....................................... 11.75 06/01/03 820,000
---------------
5,702,500
---------------
MANUFACTURING - DIVERSIFIED (5.9%)
2,000 Interlake Corp. ................................................. 12.125% 03/01/02 1,870,000
2,000 J.B. Poindexter, Inc. ........................................... 12.50 05/15/04 1,900,000
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ------------- --------- ---------------
<C> <S> <C> <C> <C>
$ 2,000 Jordan Industries, Inc. ......................................... 10.375% 08/01/03 $ 1,770,000
2,000 Jordan Industries, Inc. ......................................... 11.75 ++ 08/01/05 1,030,000
---------------
6,570,000
---------------
OIL & GAS (6.0%)
2,000 Deeptech International, Inc. .................................... 12.00 12/15/00 1,825,000
3,000 Empire Gas Corp. (Units)++....................................... 12.875++ 07/15/04 2,220,000
3,000 Presidio Oil Co. (Series B)...................................... 13.675*** 07/15/02 2,640,000
---------------
6,685,000
---------------
PUBLISHING (7.0%)
2,000 Affiliated Newspapers Inv., Inc. ................................ 13.25 ++ 07/01/06 1,000,000
3,800 BFP Holdings, Inc. (Series B).................................... 13.50 ++ 04/15/04 2,204,000
2,000 Garden State Newspapers, Inc. ................................... 12.00 07/01/04 1,965,000
1,000 United States Bancorp............................................ 10.375 06/01/02 855,000
2,000 United States Banknote Corp. .................................... 11.625 08/01/02 1,770,000
---------------
7,794,000
---------------
RESTAURANTS (8.0%)
6,000 American Restaurant Group Holdings, Inc. ........................ 14.00 ++ 12/15/05 2,880,000
3,000 Carrols Corp. ................................................... 11.50 08/15/03 2,782,500
4,000 Flagstar Corp. .................................................. 11.25 11/01/04 3,300,000
---------------
8,962,500
---------------
RETAIL (6.9%)
3,000 Cort Furniture Rental Corp. ..................................... 12.00 09/01/00 2,835,000
2,000 County Seat Stores Co. .......................................... 12.00 10/01/01 2,040,000
3,000 Thrifty Payless Holdings, Inc. .................................. 12.25 04/15/04 2,850,000
---------------
7,725,000
---------------
RETAIL - FOOD CHAINS (4.7%)
2,000 Food 4 Less Holdings, Inc. ...................................... 15.25 ++ 12/15/04 1,500,000
19,558 Grand Union Capital Corp. (Series A)............................. 15.00 ++ 07/15/04 880,110
26,950 Grand Union Capital Corp. (Series A)............................. 0.00 01/15/07 404,250
3,000 Purity Supreme, Inc. (Series B).................................. 11.75 08/01/99 2,490,000
---------------
5,274,360
---------------
TEXTILES (2.0%)
3,034 JPS Textiles Group, Inc. ........................................ 10.85 06/01/99 2,245,160
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $104,272,945)....................................... 91,544,042
---------------
U.S. GOVERNMENT OBLIGATION (11.9%)
13,000 U.S. Treasury Note (Identified Cost $13,484,062)................. 12.625 05/15/95 13,300,625
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
COMMON STOCKS (A) (2.5%)
<C> <S> <C>
BUILDING & CONSTRUCTION (0.2%)
13,538 USG Corp. (b)........................................................................... $ 263,991
---------------
COMPUTER EQUIPMENT (0.0%)
39,813 Memorex Telex Corp. (ADR) (b)........................................................... 28,618
---------------
ENTERTAINMENT/GAMING & LODGING (0.2%)
2,000 Motels of America, Inc. - 144A**........................................................ 190,000
4,000 Trump Taj Mahal, Inc. (Class A)......................................................... 40,000
---------------
230,000
---------------
FOODS & BEVERAGES (0.3%)
105,000 Specialty Foods Acquisition Corp. - 144A**.............................................. 315,000
---------------
HOTELS/MOTELS (0.1%)
71,890 Vagabond Inns, Inc. (Class D)........................................................... 107,835
---------------
INDUSTRIALS (0.0%)
87 Northern Holdings Industrial Corp....................................................... --
---------------
MANUFACTURING - DIVERSIFIED (0.9%)
84,072 Thermadyne Holdings Corp. (b)........................................................... 956,319
---------------
PUBLISHING (0.5%)
2,000 Affiliated Newspapers Inv., Inc. (Class B).............................................. 50,000
30,400 BFP Holdings, Inc. - 144A** (Class D)................................................... 456,000
---------------
506,000
---------------
RESTAURANTS (0.1%)
6,000 American Restaurant Group Holdings, Inc. - 144A**....................................... 132,000
---------------
RETAIL (0.2%)
57,000 Thrifty Payless Holdings, Inc. (Class C)................................................ 256,500
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST $11,302,395)....................................... 2,796,263
---------------
</TABLE>
<TABLE>
<CAPTION>
EXPIRATION
DATE
---------
<C> <S> <C> <C>
WARRANTS (A) (0.5%)
AEROSPACE (0.0%)
1,500 Sabreliner Corp. (b).......................................................... 04/15/03 15,000
---------------
BUILDING & CONSTRUCTION (0.0%)
6,320 USG Corp. (b)................................................................. 05/05/98 52,140
---------------
CONTAINERS (0.1%)
2,000 Crown Packaging Holdings, Ltd. - 144A** (Canada).............................. 10/15/03 110,000
---------------
ENTERTAINMENT/GAMING & LODGING (0.1%)
1,000 Boomtown, Inc. - 144A **...................................................... 11/01/98 25,000
3,263 Casino America, Inc. ......................................................... 11/15/96 3,263
1,000 Fitzgeralds Gaming Corp. - 144A**............................................. 03/15/99 30,000
100 Trump Plaza Holding Assoc. ................................................... 06/18/96 50,000
---------------
108,263
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
SHARES DATE VALUE
- ----------- --------- ---------------
<C> <S> <C> <C>
MANUFACTURING (0.0%)
3,000 BPC Holdings Corp. ........................................................... 04/15/04 $ 37,500
10,000 Uniroyal Technology Corp. .................................................... 06/01/03 15,000
---------------
52,500
---------------
RETAIL (0.3%)
2,000 County Seat Holdings Co. ..................................................... 10/15/98 50,000
99,000 New Cort Holdings Corp. ...................................................... 09/01/98 247,500
---------------
297,500
---------------
RETAIL - FOOD CHAINS (0.0%)
10,395 Purity Supreme, Inc. ......................................................... 08/06/97 520
---------------
TOTAL WARRANTS (IDENTIFIED COST $360,536)................................................ 635,923
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE
- ----------- ---------- ---------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENT (1.4%)
REPURCHASE AGREEMENT
$ 1,540 The Bank of New York (dated 12/30/94; proceeds $1,540,644;
collateralized by $1,614,051 U.S. Treasury Bill 6.43% due 06/08/95
valued at $1,570,911) (Identified Cost $1,540,109)................. 3.125% 01/03/95 1,540,109
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $130,960,047) (C)............................................. 98.1 % 109,816,962
OTHER ASSETS IN EXCESS OF LIABILITIES............................................................ 1.9 2,117,280
------ ---------------
NET ASSETS....................................................................................... 100.0 % $ 111,934,242
------ ---------------
------ ---------------
<FN>
- ----------------
ADR AMERICAN DEPOSITORY RECEIPT.
* ADJUSTABLE RATE. RATE SHOWN IS THE RATE IN EFFECT AT DECEMBER 31, 1994.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
*** BASE INTEREST RATE IS 13.675%, ADDITIONAL INTEREST IF ANY, IS LINKED TO
THE GAS INDEX. RATE SHOWN IS THE RATE IN EFFECT AT DECEMBER 31, 1994.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED STOCKS/WARRANTS.
+ PAYMENT-IN-KIND SECURITIES.
++ CURRENTLY ZERO COUPON BOND AND WILL PAY INTEREST AT THE RATE SHOWN AT A
FUTURE SPECIFIED DATE.
(A) NON-INCOME PRODUCING SECURITY.
(B) ACQUIRED THROUGH EXCHANGE OFFER.
(C) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $131,095,406; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,720,221 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $22,998,665, RESULTING IN NET UNREALIZED
DEPRECIATION OF $21,278,444.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (9.5%)
TELECOMMUNICATIONS (2.4%)
$ 5,000 Century Telephone Enterprises, Inc.................................... 8.25 % 05/01/24 $ 4,675,450
3,000 Southern New England Telephone Company................................ 7.25 12/15/33 2,528,430
2,000 Sprint Corp........................................................... 9.25 04/15/22 2,087,100
---------------
9,290,980
---------------
UTILITIES - ELECTRIC (7.1%)
2,000 Arizona Public Service Company........................................ 8.00 02/01/25 1,783,420
2,000 Arkansas Power & Light Company........................................ 7.00 10/01/23 1,591,800
5,000 Commonwealth Edison Corp.............................................. 8.375 02/15/23 4,502,950
2,000 Consumer Power Company................................................ 7.375 09/15/23 1,635,820
2,000 Dayton Power & Light Company.......................................... 7.875 02/15/24 1,835,200
2,000 Florida Power & Light Co.............................................. 7.05 12/01/26 1,648,620
1,000 Georgia Power Co...................................................... 8.625 06/01/22 961,620
5,000 GGIB Funding Corp..................................................... 7.43 01/15/11 4,347,300
3,000 Indianapolis Power Co................................................. 7.05 02/01/24 2,496,840
2,000 Long Island Lighting Company.......................................... 9.625 07/01/24 1,809,400
3,000 Niagara Mohawk Power Corporation...................................... 6.875 03/01/01 2,660,460
2,000 South Carolina Electric & Gas Co...................................... 7.625 06/01/23 1,777,840
---------------
27,051,270
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $40,089,851).......................................... 36,342,250
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- ----------
<C> <S> <C>
PREFERRED STOCKS (0.1%)
TELECOMMUNICATIONS (0.0%)
7,000 GTE Delaware Corp. 9.25% (Series A).......................................................... 180,250
---------------
UTILITIES - ELECTRIC (0.1%)
3,039 Cleveland Electric Illuminating Co. 9.125% (Series N)........................................ 299,342
---------------
TOTAL PREFERRED STOCKS (IDENTIFIED COST $484,978)............................................ 479,592
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
COMMON STOCKS (89.0%)
TELECOMMUNICATIONS (32.5%)
135,000 Airtouch Communications*..................................................................... 3,931,875
230,000 ALLTEL Corp.................................................................................. 6,928,750
190,000 AT&T Corp.................................................................................... 9,547,500
165,000 BCE, Inc..................................................................................... 5,300,625
300,000 Cable & Wireless PLC (ADR)................................................................... 5,250,000
160,000 Century Telephone Enterprises, Inc........................................................... 4,720,000
80,000 Cincinnati Bell, Inc......................................................................... 1,340,000
200,000 Comcast Corp. (Class A)...................................................................... 3,075,000
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- ---------------
<C> <S> <C>
155,000 Comsat Corp.................................................................................. $ 2,886,875
90,000 Ericsson (L.M.) Telephone Co. (ADR).......................................................... 4,961,250
175,000 GTE Corp..................................................................................... 5,315,625
180,000 MCI Communications Corp...................................................................... 3,307,500
115,000 MFS Communications Co., Inc.*................................................................ 3,766,250
100,000 Motorola, Inc................................................................................ 5,787,500
160,000 Northern Telecom, Ltd........................................................................ 5,340,000
140,000 NYNEX Corp................................................................................... 5,145,000
130,000 Pacific Telesis Group, Inc................................................................... 3,705,000
240,000 Rochester Telephone Corp..................................................................... 5,070,000
130,000 SBC Communications, Inc...................................................................... 5,248,750
185,000 Southern New England Telecommunications Corp................................................. 5,943,125
125,000 Sprint Corp.................................................................................. 3,453,125
65,000 Tele Danmark AS (ADR)........................................................................ 1,657,500
85,000 Telecommunications Corp. New Zealand, Ltd. (ADR)............................................. 4,366,875
100,000 Telefonos de Mexico, S.A. Series L (ADR)..................................................... 4,100,000
135,000 Telephone Data Systems, Inc.................................................................. 6,226,875
115,000 Time Warner, Inc............................................................................. 4,039,375
110,000 U.S. West, Inc............................................................................... 3,918,750
---------------
124,333,125
---------------
UTILITIES - ELECTRIC (44.0%)
230,000 Baltimore Gas & Electric Co.................................................................. 5,088,750
135,000 Carolina Power & Light Company............................................................... 3,594,375
150,000 Central & South West Corp.................................................................... 3,393,750
260,865 CINergy Corp................................................................................. 6,097,719
265,000 CMS Energy Corp.............................................................................. 6,061,875
130,000 Consolidated Edison of New York, Inc......................................................... 3,347,500
165,000 Detroit Edison Company....................................................................... 4,310,625
215,000 DPL, Inc..................................................................................... 4,407,500
135,000 DQE, Inc..................................................................................... 3,999,375
190,000 Entergy Corp................................................................................. 4,156,250
150,000 FPL Group, Inc............................................................................... 5,268,750
175,000 General Public Utilities Corp................................................................ 4,593,750
125,000 Hawaiian Electric Industries, Inc............................................................ 4,046,875
100,000 Houston Industries, Inc...................................................................... 3,562,500
265,000 Illinova Corp................................................................................ 5,763,750
150,000 IPALCO Enterprises, Inc...................................................................... 4,500,000
145,000 Kansas City Power & Light Company............................................................ 3,389,375
145,000 Long Island Lighting Company................................................................. 2,229,375
145,000 Montana Power Company........................................................................ 3,335,000
110,000 New England Electric System.................................................................. 3,533,750
105,000 New York State Electric & Gas Corp........................................................... 1,995,000
220,000 Niagara Mohawk Power Corp.................................................................... 3,135,000
180,000 NIPSCO Industries, Inc....................................................................... 5,355,000
100,000 Northeast Utilities.......................................................................... 2,162,500
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- ---------------
<C> <S> <C>
150,000 Pacific Gas & Electric Company............................................................... $ 3,656,250
310,000 PacifiCorp................................................................................... 5,618,750
240,000 Pinnacle West Capital Corp................................................................... 4,740,000
110,000 Portland General Corp........................................................................ 2,117,500
130,000 Potomac Electric Power Company............................................................... 2,388,750
210,000 Public Service Company of Colorado........................................................... 6,168,750
240,000 Public Service Company of New Mexico*........................................................ 3,120,000
145,000 Public Service Enterprise Group, Inc......................................................... 3,842,500
100,000 Puget Sound Power & Light Company............................................................ 2,012,500
140,000 San Diego Gas & Electric Company............................................................. 2,695,000
90,000 SCANA Corp................................................................................... 3,791,250
120,000 SCE Corp..................................................................................... 1,755,000
280,000 Southern Company............................................................................. 5,600,000
245,000 Tele-Communications, Inc. (Class A)*......................................................... 5,328,750
145,000 Texas Utilities Co........................................................................... 4,640,000
115,000 United Illuminating Company.................................................................. 3,392,500
165,000 Western Resources Corp....................................................................... 4,723,125
210,000 Wisconsin Energy Corp........................................................................ 5,433,750
---------------
168,352,719
---------------
UTILITIES - NATURAL GAS (12.5%)
90,000 Apache Corp.................................................................................. 2,250,000
120,000 Burlington Resources, Inc.................................................................... 4,200,000
110,000 Columbia Gas Systems, Inc.*.................................................................. 2,585,000
150,000 El Paso Natural Gas Company.................................................................. 4,575,000
180,000 ENSERCH Corp................................................................................. 2,362,500
105,000 Louisiana Land & Exploration Co.............................................................. 3,819,375
130,000 Panhandle Eastern Corp....................................................................... 2,567,500
130,000 Questar Corp................................................................................. 3,575,000
210,000 Seagull Energy Corp.*........................................................................ 4,016,250
130,000 Tenneco, Inc................................................................................. 5,525,000
85,000 UGI Corp..................................................................................... 1,731,875
145,000 Union Texas Petroleum Holdings, Inc.......................................................... 3,008,750
110,000 USX Delhi-Group.............................................................................. 1,100,000
250,000 Williams Companies, Inc...................................................................... 6,281,250
---------------
47,597,500
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST $359,677,185)........................................... 340,283,344
---------------
<PAGE>
</TABLE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ---------- ------ -------- -----
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (0.8%)
U.S. GOVERNMENT AGENCY (A) (0.7%)
$ 2,600 Federal Home Loan Banks.............................................. 5.75 % 01/03/95 $ 2,599,169
---------------
REPURCHASE AGREEMENT (0.1%)
228 The Bank of New York (dated 12/30/94; proceeds $223,346;
collateralized by $233,980 U.S. Treasury Bill 6.43% due 06/08/95
valued at $227,733)................................................ 3.125 01/03/95 223,268
---------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,822,437).............................. 2,822,437
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $403,074,451) (B)........................... 99.4 % 379,927,623
OTHER ASSETS IN EXCESS OF LIABILITIES.......................................... 0.6 2,484,129
------ ---------------
NET ASSETS..................................................................... 100.0 % $ 382,411,752
------ ---------------
------ ---------------
<FN>
- ----------------
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(A) U.S. GOVERNMENT AGENCY WAS 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 $403,114,273; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $18,203,312 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $41,389,962, RESULTING IN NET UNREALIZED
DEPRECIATION OF $23,186,650.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (94.0%)
AEROSPACE (4.2%)
184,000 Raytheon Co......................... $ 11,753,000
193,500 United Technologies Corp............ 12,166,312
---------------
23,919,312
---------------
ALUMINUM (2.2%)
144,000 Aluminum Co. of America............. 12,474,000
---------------
AUTO PARTS (2.0%)
177,000 TRW, Inc............................ 11,682,000
---------------
AUTOMOBILES (4.4%)
447,000 Ford Motor Co....................... 12,516,000
299,000 General Motors Corp................. 12,632,750
---------------
25,148,750
---------------
BANKING (4.0%)
287,100 BankAmerica Corp.................... 11,340,450
206,000 Bankers Trust N.Y. Corp............. 11,407,250
---------------
22,747,700
---------------
BEVERAGES (2.1%)
323,500 PepsiCo, Inc........................ 11,726,875
---------------
CHEMICALS (6.2%)
174,800 Dow Chemical Co. (The).............. 11,755,300
237,750 Eastman Chemical Co................. 12,006,375
311,500 Grace (W.R.) & Co................... 12,031,688
---------------
35,793,363
---------------
COMPUTERS (2.1%)
160,000 International Business Machines
Corp.............................. 11,760,000
---------------
CONGLOMERATES (4.2%)
223,300 Minnesota Mining & Manufacturing
Co................................ 11,918,638
288,500 Tenneco, Inc........................ 12,261,250
---------------
24,179,888
---------------
COSMETICS (2.1%)
157,700 Gillette Co......................... 11,788,075
---------------
DRUGS (6.0%)
364,000 Abbott Laboratories................. 11,875,500
175,300 American Home Products Corp......... 11,000,075
197,200 Bristol-Myers Squibb Co............. 11,412,950
---------------
34,288,525
---------------
ELECTRIC - MAJOR (4.1%)
238,200 General Electric Co................. 12,148,200
920,000 Westinghouse Electric Corp.......... 11,270,000
---------------
23,418,200
---------------
FINANCE (2.0%)
315,000 Household International, Inc........ 11,694,375
---------------
FOODS (4.1%)
372,400 Quaker Oats Co...................... 11,451,300
478,000 Sara Lee Corp....................... 12,069,500
---------------
23,520,800
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
HOUSEHOLD PRODUCTS (2.0%)
184,400 Procter & Gamble Co................. $ 11,432,800
---------------
INSURANCE (2.1%)
261,000 Aetna Life & Casualty Co............ 12,299,625
---------------
METALS & MINING (2.1%)
197,000 Phelps Dodge Corp................... 12,189,375
---------------
NATURAL GAS (3.9%)
367,000 El Paso Natural Gas Co.............. 11,193,500
568,000 Panhandle Eastern Corp.............. 11,218,000
---------------
22,411,500
---------------
OFFICE EQUIPMENT (2.0%)
358,000 Pitney-Bowes, Inc................... 11,366,500
---------------
OIL & GAS PRODUCTS (2.0%)
335,000 Burlington Resources, Inc........... 11,725,000
---------------
OIL (8.0%)
109,000 Atlantic Richfield Co............... 11,090,750
196,000 Exxon Corp.......................... 11,907,000
133,500 Mobil Corp.......................... 11,247,375
107,900 Royal Dutch Petroleum Co. (ADR)..... 11,599,250
---------------
45,844,375
---------------
PAPER & FOREST PRODUCTS (2.0%)
301,700 Weyerhaeuser Co..................... 11,313,750
---------------
PHOTOGRAPHY (2.1%)
256,500 Eastman Kodak Co.................... 12,247,875
---------------
RAILROADS (2.0%)
233,500 Burlington Northern, Inc............ 11,237,187
---------------
RETAIL - DEPARTMENT STORES (3.7%)
752,800 K-Mart Corp......................... 9,786,400
341,000 May Department Stores Co............ 11,508,750
---------------
21,295,150
---------------
TELECOMMUNICATIONS (2.1%)
331,000 U.S. West, Inc...................... 11,791,875
---------------
TELEPHONES (4.1%)
232,800 Bell Atlantic Corp.................. 11,581,800
388,500 GTE Corp............................ 11,800,687
---------------
23,382,487
---------------
TOBACCO (2.0%)
202,000 Philip Morris Cos., Inc............. 11,615,000
---------------
UTILITIES - ELECTRIC (4.2%)
330,500 FPL Group, Inc...................... 11,608,812
510,500 Unicom Corp......................... 12,252,000
---------------
23,860,812
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$534,567,628)..................... 538,155,174
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (5.7%)
$ 2,000 U.S. Treasury Bond 8.125% due
08/15/19.......................... $ 2,025,313
5,000 U.S. Treasury Bond 8.00% due
11/15/21.......................... 5,016,406
5,000 U.S. Treasury Bond 7.125% due
02/15/23.......................... 4,547,656
8,000 U.S. Treasury Bond 6.25% due
08/15/23.......................... 6,496,250
10,000 U.S. Treasury Note 4.25% due
07/31/95.......................... 9,854,688
5,000 U.S. Treasury Note 6.375% due
01/15/99.......................... 4,746,875
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $34,736,875)..... 32,687,188
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (0.0%)
REPURCHASE AGREEMENT
$ 205 The Bank of New York 3.125% due
01/03/95 (dated 12/30/94; proceeds
$205,142; collateralized by
$214,908 U.S. Treasury Bill 6.43%
due 06/08/95 valued at $209,172)
(Identified Cost $205,071)........ $ 205,071
---------------
TOTAL INVESTMENTS (IDENTIFIED COST
$569,509,574) (A)..................... 99.7% 571,047,433
OTHER ASSETS IN EXCESS OF LIABILITIES... 0.3 1,904,890
------ ---------------
NET ASSETS.............................. 100.0% $ 572,952,323
------ ---------------
------ ---------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $571,309,901; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $31,631,173 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $31,893,641, RESULTING IN NET UNREALIZED
DEPRECIATION OF $262,468.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (97.4%)
ADVERTISING (2.3%)
32,200 Interpublic Group Cos., Inc........... $ 1,034,425
-------------
APPAREL (2.3%)
30,100 Cintas Corp........................... 1,053,500
-------------
AUTO PARTS (2.3%)
29,100 Genuine Parts Co...................... 1,047,600
-------------
BANKING (6.6%)
40,700 Banc One Corp......................... 1,032,762
41,100 Central Fidelity Banks, Inc........... 996,675
21,300 Fifth Third Bancorp................... 1,006,425
-------------
3,035,862
-------------
BEVERAGES (4.7%)
20,100 Anheuser-Busch Cos., Inc.............. 1,022,588
21,600 Coca Cola Co.......................... 1,112,400
-------------
2,134,988
-------------
BUILDING MATERIALS (2.4%)
32,500 Sherwin-Williams Co................... 1,076,562
-------------
CHEMICALS - SPECIALTY (2.3%)
32,200 Sigma-Aldrich, Inc.................... 1,046,500
-------------
COMMERCIAL SERVICES (4.6%)
17,300 Automatic Data Processing, Inc........ 1,012,050
28,400 General Motors Corp. (Class E)........ 1,093,400
-------------
2,105,450
-------------
COMPUTER SOFTWARE (2.3%)
17,000 Microsoft Corp.*...................... 1,039,125
-------------
CONSUMER SERVICES (2.3%)
28,400 Block (H&R), Inc...................... 1,054,350
-------------
COSMETICS (2.2%)
22,100 International Flavors & Fragrances,
Inc................................. 1,022,125
-------------
DRUGS (7.0%)
33,400 Abbott Laboratories................... 1,089,675
22,100 Forest Laboratories, Inc. (Class A)*.. 1,030,412
14,700 Schering-Plough Corp.................. 1,087,800
-------------
3,207,887
-------------
ELECTRIC EQUIPMENT (2.3%)
18,500 Grainger (W.W.), Inc.................. 1,068,375
-------------
ELECTRONICS (2.3%)
28,600 Dionex Corp.*......................... 1,058,200
-------------
ENTERTAINMENT (2.5%)
48,500 Circus Circus Enterprises, Inc.*...... 1,127,625
-------------
FINANCIAL - MISCELLANEOUS (2.3%)
14,200 Federal National Mortgage
Association......................... 1,034,825
-------------
FOOD WHOLESALERS (2.3%)
40,700 Sysco Corp............................ 1,048,025
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
FOODS (7.0%)
32,500 ConAgra, Inc.......................... $ 1,015,625
17,900 Tootsie Roll Industries, Inc.......... 1,100,850
22,100 Wrigley, (W.M.) Jr., (Class A)........ 1,091,188
-------------
3,207,663
-------------
GOLD MINING (2.4%)
48,700 American Barrick Resources Corp....... 1,083,575
-------------
HOUSEWARES (2.4%)
38,900 Rubbermaid, Inc....................... 1,118,375
-------------
INSURANCE (0.6%)
18,100 Crawford & Co., (Class B)............. 289,600
-------------
MACHINERY - DIVERSIFIED (2.3%)
23,400 Thermo Electron Corp.*................ 1,050,075
-------------
MANUFACTURED HOUSING (2.5%)
71,125 Clayton Homes, Inc.................... 1,120,219
-------------
MANUFACTURING (4.6%)
52,601 Federal Signal Corp................... 1,071,745
27,600 Loral Corp............................ 1,045,350
-------------
2,117,095
-------------
MEDICAL EQUIPMENT (4.4%)
68,900 Biomet, Inc.*......................... 947,375
28,500 Stryker Corp.......................... 1,043,813
-------------
1,991,188
-------------
RESTAURANTS (7.0%)
62,500 Brinker International, Inc.*.......... 1,132,813
61,700 International Dairy Queen, Inc. (Class
A)*................................. 1,018,050
36,000 McDonald's Corp....................... 1,053,000
-------------
3,203,863
-------------
RETAIL - DEPARTMENT STORES (2.2%)
46,300 Wal-Mart Stores, Inc.................. 983,875
-------------
RETAIL - DRUG STORES (2.3%)
24,300 Walgreen Co........................... 1,063,125
-------------
RETAIL - FOOD CHAINS (2.2%)
35,000 Albertson's, Inc...................... 1,015,000
-------------
TOBACCO (2.4%)
38,800 UST, Inc.............................. 1,076,700
-------------
UTILITIES (2.2%)
36,979 Citizens Utilities Co. of Delaware
(Series A).......................... 462,232
43,552 Citizens Utilities Co. of Delaware
(Series B).......................... 549,848
-------------
1,012,080
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$43,555,895)........................ 44,527,857
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -------------
SHORT-TERM INVESTMENT (2.4%)
<C> <S> <C>
REPURCHASE AGREEMENT
$ 1,099 The Bank of New York 3.125% due
01/03/95 (dated 12/30/94; proceeds
$1,098,895, collateralized by
$1,151,246 U.S.Treasury Bill 6.43%
due 06/08/95 valued at $1,120,484)
(Identified Cost $1,098,514)....... $ 1,098,514
-------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED COST
$44,654,409).......................... 99.8% $ 45,626,371
OTHER ASSETS IN EXCESS OF
LIABILITIES........................... 0.2 88,890
------ ---------------
NET ASSETS............................. 100.0% $ 45,715,261
------ ---------------
------ ---------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $45,061,719; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,116,044 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $2,551,392, RESULTING IN NET UNREALIZED
APPRECIATION OF $564,652.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (99.3%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
426,000 Pioneer International, Ltd. ........ $ 1,057,162
---------------
MULTI-INDUSTRY
465,000 Southcorp Holdings, Ltd. ........... 1,045,762
---------------
TOTAL AUSTRALIA..................... 2,102,924
---------------
</TABLE>
<TABLE>
<C> <S> <C>
CANADA (3.0%)
OIL RELATED
36,000 Imperial Oil, Ltd. ................. 1,185,306
62,700 IPL Energy, Inc..................... 1,272,122
---------------
2,457,428
---------------
TELECOMMUNICATIONS
53,200 BCE, Inc............................ 1,709,013
---------------
TOTAL CANADA........................ 4,166,441
</TABLE>
<TABLE>
<C> <S> <C>
FRANCE (7.5%)
FINANCIAL SERVICES
3,825 Societe Eurafrance S.A. ............ 1,174,003
---------------
FOODS & BEVERAGES
8,650 Eridania Beghin-Say S.A. ........... 1,137,135
4,500 Saint-Louis......................... 1,158,708
---------------
2,295,843
---------------
HOUSEHOLD PRODUCTS
9,340 BIC................................. 1,173,622
---------------
INTERNATIONAL OIL - INTEGRATED
19,350 Compagnie Francaise de Petroleum
Total (B Shares).................. 1,124,038
---------------
MULTI-INDUSTRY
5,095 Compagnie Generale D'Industrie et de
Participations.................... 1,116,320
3,400 Financiere et Industrielle Gaz et
Eaux.............................. 1,082,397
25,200 Worms et Compagnie.................. 1,215,169
---------------
3,413,886
---------------
OIL RELATED
8,750 Esso Francaise S.A. ................ 1,171,582
---------------
TOTAL FRANCE........................ 10,352,974
</TABLE>
<TABLE>
<C> <S> <C>
GERMANY (6.6%)
BANKING
2,100 Deutsche Bank AG.................... 975,799
---------------
CHEMICALS
4,300 Bayer AG............................ 1,007,357
---------------
HEALTH & PERSONAL CARE
3,500 Douglas Holding AG.................. 984,834
---------------
MACHINERY - DIVERSIFIED
4,575 IWKA AG............................. 1,003,872
---------------
MULTI-INDUSTRY
800 Preussag AG......................... 232,333
3,250 Viag AG............................. 1,013,069
---------------
1,245,402
---------------
OFFICE EQUIPMENT
5,200 Herlitz AG.......................... 986,641
---------------
<CAPTION>
NUMBER
OF SHARES VALUE
- ----------- ---------------
<C> <S> <C>
RETAIL - DEPARTMENT STORES
2,700 Karstadt AG......................... $ 984,511
---------------
TEXTILES - APPAREL
1,650 Hugo Boss AG (Pref.)................ 1,000,968
---------------
UTILITIES - ELECTRIC
2,665 Veba AG............................. 928,751
---------------
TOTAL GERMANY....................... 9,118,135
</TABLE>
<TABLE>
<C> <S> <C>
HONG KONG (4.0%)
BANKING
103,600 HSBC Holdings....................... 1,118,299
---------------
CONGLOMERATES
180,000 Swire Pacific, Ltd. (A Shares)...... 1,121,582
---------------
REAL ESTATE
260,000 Cheung Kong Holdings, Ltd. ......... 1,058,755
---------------
TELECOMMUNICATIONS
594,800 Hong Kong Telecommunications,
Ltd. ............................. 1,134,161
---------------
UTILITIES - ELECTRIC
407,000 Hong Kong Electric Holdings......... 1,112,798
---------------
TOTAL HONG KONG..................... 5,545,595
</TABLE>
<TABLE>
<C> <S> <C>
ITALY (2.5%)
BANKING
305,000 Banco Ambroveneto................... 807,077
---------------
NATURAL GAS
298,000 Italgas............................. 818,812
---------------
TELECOMMUNICATIONS
470,000 Telecom Italia SpA.................. 935,662
---------------
TEXTILES
76,000 Benetton Group SpA.................. 886,277
---------------
TOTAL ITALY......................... 3,447,828
</TABLE>
<TABLE>
<C> <S> <C>
JAPAN (24.5%)
AUTOMOTIVE
166,000 Toyota Motor Corp. ................. 3,494,737
---------------
BUILDING & CONSTRUCTION
356,000 Fujita Corp. ....................... 1,887,960
---------------
BUILDING MATERIALS
278,000 Sankyo Industry Co., Ltd. .......... 1,697,263
---------------
CHEMICALS
363,000 Sekisui Chemical Co. ............... 3,602,707
---------------
COMPUTER SERVICES
131,000 AT&T Global Info Solutions.......... 1,615,338
---------------
ELECTRONICS
228,000 Hitachi, Ltd. ...................... 2,260,571
28,000 Kyocera Corp. ...................... 2,074,386
62,500 Sony Corp. ......................... 3,540,100
66,000 TDK Corp. .......................... 3,195,789
---------------
11,070,846
---------------
FOODS & BEVERAGES
187,000 House Foods Industrial Corp. ....... 3,711,880
---------------
MULTI - INDUSTRY
551,000 Furukawa Co., Ltd. ................. 3,513,143
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
- ----------- ---------------
<C> <S> <C>
PHARMACEUTICALS
275,000 Takeda Chemical Industries.......... $ 3,335,840
---------------
TOTAL JAPAN......................... 33,929,714
</TABLE>
<TABLE>
<C> <S> <C>
MALAYSIA (2.0%)
BUILDING & CONSTRUCTION
237,000 Cement Industries of Malaysia....... 737,725
121,000 United Engineers Malaysia Berhad.... 596,946
---------------
1,334,671
---------------
CONGLOMERATES
272,400 Sime Darby Berhad................... 623,939
---------------
FOODS & BEVERAGES
68,000 Nestle Malaysia Berhad.............. 452,623
---------------
OIL RELATED
132,000 Esso Malaysia Berhad................ 366,954
---------------
TOTAL MALAYSIA...................... 2,778,187
</TABLE>
<TABLE>
<C> <S> <C>
NETHERLANDS (3.1%)
BANKING
7,000 ABN-AMRO Holdings................... 243,215
---------------
BUILDING & CONSTRUCTION
25,100 Koninklijke Volker Stevin NV........ 1,359,493
---------------
FINANCIAL SERVICES
23,700 International Nederlande Group NV... 1,119,793
---------------
INSURANCE
3,500 Aegon NV............................ 223,855
30,202 Fortis Amev NV...................... 1,282,563
---------------
1,506,418
---------------
TOTAL NETHERLANDS................... 4,228,919
</TABLE>
<TABLE>
<C> <S> <C>
SWITZERLAND (4.0%)
BANKING
6,750 Schweizerische Bankverein AG
(Bearer).......................... 1,866,977
---------------
CHEMICALS
3,075 Ciba-Geigy AG (Bearer).............. 1,839,643
---------------
MULTI-INDUSTRY
2,175 Brown Boveri & Compagnie AG
(Bearer).......................... 1,872,880
---------------
TOTAL SWITZERLAND................... 5,579,500
</TABLE>
<TABLE>
<C> <S> <C>
UNITED KINGDOM (12.4%)
BANKING
290,000 Hambros PLC......................... 1,043,188
214,600 National Westminster Bank PLC....... 1,721,803
---------------
2,764,991
---------------
BREWERS
214,100 Bass PLC (Ord.)..................... 1,721,141
145,000 Scottish & Newcastle Breweries PLC.. 1,161,114
---------------
2,882,255
---------------
<CAPTION>
NUMBER
OF SHARES VALUE
- ----------- ---------------
<C> <S> <C>
FOODS & BEVERAGES
908,000 Hazlewood Food PLC.................. $ 1,604,727
---------------
HEALTH & PERSONAL CARE
58,000 Wellcome PLC........................ 633,170
---------------
MULTI-INDUSTRY
460,500 Hanson Trust PLC.................... 1,656,511
---------------
NATURAL GAS
371,000 British Gas PLC..................... 1,827,769
---------------
RETAIL - MERCHANDISING
450,000 Tesco PLC........................... 1,745,423
---------------
TELECOMMUNICATIONS
307,000 British Telecom PLC................. 1,810,158
---------------
UTILITIES - ELECTRIC
44,000 South Wales Electricity PLC......... 619,343
---------------
UTILITIES - WATER
161,000 Welsh Water......................... 1,654,352
---------------
TOTAL UNITED KINGDOM................ 17,198,699
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES (28.2%)
BANKING
112,300 BankAmerica Corp. .................. 4,435,850
---------------
CHEMICALS
63,500 Monsanto Co. ....................... 4,476,750
---------------
CONGLOMERATES
120,200 Tenneco, Inc........................ 5,108,500
---------------
HEALTH & PERSONAL CARE
77,400 Bristol Myers Squibb Co............. 4,479,525
---------------
INTERNATIONAL OIL - INTEGRATED
101,300 Chevron Corp. ...................... 4,520,513
---------------
METALS & BASIC MATERIALS
57,000 Phelps Dodge Corp. ................. 3,526,875
---------------
RETAIL
270,000 K-Mart Corp. ....................... 3,510,000
---------------
TOBACCO
78,600 Philip Morris Cos., Inc............. 4,519,500
---------------
UTILITIES - ELECTRIC
182,400 Pacific Gas & Electric Co. ......... 4,446,001
---------------
TOTAL UNITED STATES................. 39,023,514
---------------
TOTAL INVESTMENTS (IDENTIFIED COST
$140,526,932) (A)...................... 99.3% 137,472,430
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES............................ 0.7 1,013,609
------ ---------------
NET ASSETS............................... 100.0% $ 138,486,039
------ ---------------
------ ---------------
<FN>
- ------------------
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $140,631,317; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,377,721 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $6,536,608, RESULTING IN NET UNREALIZED
DEPRECIATION OF $3,158,887.
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1994:
<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS TO EXCHANGE DELIVERY APPRECIATION/
RECEIVE FOR DATE (DEPRECIATION)
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
US$ 213,847 L 136,906 01/03/95 $ (274)
MYR 72,655 US$ 28,381 01/03/95 67
US$ 112,896 Y 11,272,674 01/04/95 (113)
US$ 350,609 Y 34,973,205 01/05/95 --
US$ 29,925 MYR 76,489 01/05/95 (23)
US$ 46,436 AUD 59,917 01/06/95 (30)
L 23,288 US$ 36,311 01/06/95 112
L 153,960 US$ 238,223 01/10/95 2,571
US$ 205,589 L 131,585 01/13/95 (211)
FRF 174,221 US$ 32,538 01/31/95 88
US$ 6,296 FRF 33,623 01/31/95 --
ITL 42,944,783 US$ 26,019 01/31/95 408
-------
Net Unrealized Appreciation........................$2,595
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
]DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Automotive................................... $ 3,494,737 2.7%
Banking...................................... 12,212,208 8.8
Brewers...................................... 2,882,255 2.1
Building & Construction...................... 5,639,286 4.1
Building Materials........................... 1,697,263 1.2
Chemicals.................................... 10,926,457 7.9
Computer Services............................ 1,615,338 1.2
Conglomerates................................ 6,854,021 4.9
Electronics.................................. 11,070,846 8.0
Financial Services........................... 2,293,796 1.4
Foods & Beverages............................ 8,065,073 5.8
Health & Personal Care....................... 6,097,529 4.4
Household Products........................... 1,173,622 0.8
Insurance.................................... 1,506,418 1.1
International Oil - Intergrated.............. 5,644,551 4.1
Machinery - Diversified...................... 1,003,872 0.7
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Metals & Basic Materials..................... $ 3,526,875 2.5%
Multi-Industry............................... 12,747,584 9.2
Natural Gas.................................. 2,646,581 1.9
Office Equipment............................. 986,641 0.7
Oil Related.................................. 3,995,964 2.9
Pharmaceuticals.............................. 3,335,840 2.4
Real Estate.................................. 1,058,755 0.8
Retail....................................... 3,510,000 2.5
Retail - Department Stores................... 984,511 0.7
Retail - Merchandising....................... 1,745,423 1.3
Telecommunications........................... 5,588,994 4.3
Textiles..................................... 886,277 0.6
Textiles - Apparel........................... 1,000,968 0.7
Tobacco...................................... 4,519,500 3.3
Utilities - Electric......................... 7,106,893 5.1
Utilities - Water............................ 1,654,352 1.2
------------ -----
$137,472,430 99.3%
------------ -----
------------ -----
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Common Stocks......................................................................... $ 136,471,462 98.5%
Preferred Stock....................................................................... 1,000,968 0.8
-------------- -----
$ 137,472,430 99.3%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS AND RIGHTS
(96.0%)
AUSTRIA (2.8%)
BUILDING & CONSTRUCTION
10,000 Va Technologie AG.............. $ 1,005,495
---------------
ELECTRIC UTILITIES
7,500 Evn-Energieversorgung Ni....... 973,214
15,500 Oester Elex (A Shares)......... 894,231
---------------
1,867,445
---------------
OIL & GAS
17,000 OMV AG*........................ 1,438,462
---------------
TOTAL AUSTRIA.................. 4,311,402
---------------
</TABLE>
<TABLE>
<C> <S> <C>
BELGIUM (1.8%)
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
5,270 Colruyt S.A.................... 1,217,170
67,500 Quilmes........................ 1,552,500
---------------
TOTAL BELGIUM.................. 2,769,670
---------------
</TABLE>
<TABLE>
<C> <S> <C>
FINLAND (2.8%)
ELECTRONICS
29,000 Nokia AB (Pref.)............... 4,273,619
---------------
</TABLE>
<TABLE>
<C> <S> <C>
FRANCE (10.9%)
AUTOMOBILES
13,500 Psa Peugeot Citroen*........... 1,853,090
---------------
BANKING
13,000 Societe Generale Paris......... 1,377,903
---------------
BUILDING MATERIALS
7,700 CIE Saint Gobain............... 889,682
---------------
FINANCIAL SERVICES
20,405 Credit Local de France......... 1,452,041
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
8,800 LVMH-Moet Hennessey Louis
Vuitton...................... 1,389,213
---------------
INSURANCE
31,808 Scor S.A....................... 708,830
12,700 Ste Cen Group Assur Nat........ 649,270
---------------
1,358,100
---------------
MULTI - INDUSTRY
16,000 CIE Generale Des Eaux.......... 1,558,052
2,835 Eurafrance..................... 870,143
---------------
2,428,195
---------------
OIL RELATED
25,420 Societe National
Elf-Aquitaine................ 1,789,397
---------------
RETAIL
3,600 Carrefour Supermarche.......... 1,490,562
8,000 Castorama Dubois Invest........ 996,255
---------------
2,486,817
---------------
TEXTILES
19,500 Christian Dior................. 1,511,798
3,500 Christian Dior (Warrants due
6/30/98)*.................... 29,494
---------------
1,541,292
---------------
TOTAL FRANCE................... 16,565,730
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
GERMANY (8.1%)
AUTOMOTIVE
1,272 Bayerische Motoren Werke....... $ 632,101
---------------
BANKING
3,300 Dt. Pfandbrief U.
Hypothekenbank............... 1,605,808
---------------
BUSINESS SERVICES
4,700 Sap AG (Pref.)................. 2,663,182
---------------
CHEMICALS
6,250 Basf AG........................ 1,288,722
---------------
ELECTRIC UTILITIES
5,500 Veba AG........................ 1,916,747
---------------
MACHINERY - DIVERSIFIED
1,350 Krones AG (Pref.).............. 757,986
---------------
PHARMACEUTICALS
5,100 Gehe AG........................ 1,843,175
---------------
RETAIL
1,580 Hornbach Baumarkt Holdings
(Pref.)...................... 1,580,510
---------------
TOTAL GERMANY.................. 12,288,231
---------------
</TABLE>
<TABLE>
<C> <S> <C>
ITALY (3.8%)
ELECTRICAL EQUIPMENT
280,000 Ansaldo Trans.................. 964,923
---------------
HOUSEHOLD FURNISHINGS & APPLIANCES
29,700 Industrie Natuzzi SpA (ADR).... 994,950
---------------
MANUFACTURING
34,800 Luxottica Group (ADR).......... 1,187,550
---------------
TELECOMMUNICATIONS
1,032,750 Telecom Italia................. 2,681,972
---------------
TOTAL ITALY.................... 5,829,395
---------------
</TABLE>
<TABLE>
<C> <S> <C>
LUXEMBOURG (0.7%)
STEEL
7,000 Arbed (Acier Reun) NVP*........ 1,044,186
---------------
</TABLE>
<TABLE>
<C> <S> <C>
NETHERLANDS (7.3%)
BUSINESS SERVICES
43,000 Randstad Holdings.............. 2,326,534
---------------
INSURANCE
204 Aegon NV....................... 13,048
---------------
MACHINERY - DIVERSIFIED
37,162 Boskalis Westminster........... 758,015
---------------
MANUFACTURING
7,500 Polynorm NV*................... 735,955
---------------
MULTI - INDUSTRY
37,500 Hunter Douglas NV.............. 1,689,715
---------------
PUBLISHING
210,000 Elsevier NV.................... 2,190,147
16,000 VNU-Ver Ned Utigev............. 1,661,308
---------------
3,851,455
---------------
TRANSPORTATION
67,500 IHC Caland..................... 1,707,433
---------------
TOTAL NETHERLANDS.............. 11,082,155
---------------
</TABLE>
<TABLE>
<C> <S> <C>
NORWAY (2.2%)
BANKING
48,000 Sparebanken More............... 926,353
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
BUSINESS SERVICES
113,300 Sysdeco Group AS*.............. $ 837,770
---------------
OIL RELATED
36,300 Smedvig Tankships*............. 279,148
---------------
TRANSPORTATION
55,395 Helikopter Service............. 638,984
20,000 Storli AS...................... 343,094
20,000 Storli AS (B Shares)*.......... 331,263
---------------
1,313,341
---------------
TOTAL NORWAY................... 3,356,612
---------------
</TABLE>
<TABLE>
<C> <S> <C>
SPAIN (3.5%)
BANKS - COMMERCIAL
30,000 Banco Bilbao Vizcaya........... 734,369
---------------
BUILDING & CONSTRUCTION
4,500 Fomento de Constructiones y
Contratas S.A................ 426,639
---------------
ENGINEERING & CONSTRUCTION
125,000 Uralita S.A.*.................. 1,203,107
---------------
TELECOMMUNICATIONS
120,000 Telefonica de Espana........... 1,409,625
---------------
UTILITIES
18,200 Gas Natural SDG................ 1,524,138
---------------
TOTAL SPAIN.................... 5,297,878
---------------
</TABLE>
<TABLE>
<C> <S> <C>
SWEDEN (9.5%)
AUTOMOBILES
60,000 Volvo AB (Series B Free)....... 1,130,461
---------------
AUTOMOTIVE
40,000 Autoliv AB..................... 1,480,365
---------------
BUSINESS SERVICES
190,000 Scribona AB (Series B Free).... 1,252,927
---------------
FOREST PRODUCTS, PAPER & PACKING
36,000 Mo Och Domsjoe AB (Series B
"Free")...................... 1,647,242
---------------
HEALTH & PERSONAL CARE
58,525 Astra AB (A Shares)............ 1,512,233
---------------
HOUSEHOLD FURNISHINGS & APPLIANCES
29,500 Electrolux (Series B Free)..... 1,492,746
---------------
INTERNATIONAL TRADE
49,290 Kinnevik Industriforvatnings (B
Shares)...................... 1,628,495
---------------
METALS & MINING
44,000 Ssab Svenskt Stal AB (Series A
Free)........................ 1,924,474
---------------
PAPER & FOREST PRODUCTS
23,000 Stora Kopparbergs (Series B
Free)........................ 1,383,603
---------------
RETAIL
18,200 Hennes & Mauritz AB (Series
B)........................... 930,746
---------------
TOTAL SWEDEN................... 14,383,292
---------------
</TABLE>
<TABLE>
<C> <S> <C>
SWITZERLAND (8.3%)
BUSINESS SERVICES
1,020 Soc Gen Surveillance........... 1,426,192
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
CEMENT
2,000 Holderbank Financiere Glarus AG
(Bearer)..................... $ 1,512,836
---------------
ELECTRICAL EQUIPMENT
1,600 Swisslog Holdings AG........... 372,861
---------------
INDUSTRIALS
2,370 Hilti AG PTG Certs............. 1,765,549
---------------
LEISURE
60 Reiseburo Kuoni................ 77,476
32 Reiseburo Kuoni (Bearer)....... 855,746
---------------
933,222
---------------
MACHINERY
1,010 Schinder Holdings.............. 1,180,700
---------------
MANUFACTURING
4,150 Kardex (B Shares).............. 1,093,941
---------------
PHARMACEUTICALS
330 Roche Holdings AG.............. 1,594,781
---------------
RETAIL
5,500 Fust SA Dipl. Ing AG (Bearer).. 1,638,906
---------------
TRANSPORTATION
1,100 Danzas Holding AG.............. 1,025,367
---------------
TOTAL SWITZERLAND.............. 12,544,355
---------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED KINGDOM (34.3%)
AEROSPACE & DEFENSE
133,333 British Aerospace.............. 890,435
180,000 Smiths Industries PLC.......... 1,227,427
---------------
2,117,862
---------------
AUTO PARTS - ORIGINAL EQUIPMENT
350,000 BBA Group PLC.................. 1,094,800
---------------
BANKING
200,000 Abbey National PLC............. 1,345,040
270,000 TSB Group PLC.................. 988,135
---------------
2,333,175
---------------
BUILDING & CONSTRUCTION
250,000 Blue Circle Industries PLC..... 1,094,800
210,400 John Mowlem & Co. PLC.......... 329,066
263,300 Williams Holdings PLC.......... 1,284,820
---------------
2,708,686
---------------
BUSINESS SERVICES
150,000 Reuters Holdings PLC........... 1,095,582
---------------
CONGLOMERATES
361,659 BTR PLC........................ 1,657,310
222,000 Harrison & Crosfield........... 479,147
---------------
2,136,457
---------------
CONTRUCTION PLANT & EQUIPMENT
207,400 CRH PLC........................ 1,145,039
---------------
ELECTRIC UTILITIES
105,000 Powergen PLC................... 875,293
200,000 Scottish Power PLC............. 1,091,672
---------------
1,966,965
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
36,307 Allied Lyons PLC............... 306,634
250,000 Argyll Group PLC............... 1,043,970
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
94,261 BAT Industries PLC............. $ 635,398
122,000 Dalgety PLC.................... 801,394
140,000 Grand Metropolitan PLC......... 891,167
247,400 Rothmans International
(Units)++.................... 1,741,201
173,500 Tate & Lyle PLC................ 1,145,114
---------------
6,564,878
---------------
FOREST PRODUCTS, PAPER & PACKING
70,500 De La Rue Co................... 1,033,155
---------------
HEALTH & PERSONAL CARE
171,000 Glaxo Holdings................. 1,773,154
382,700 Smithkline Beecham (Units)++... 2,519,865
---------------
4,293,019
---------------
HOUSEHOLD GOODS
125,000 Reckitt & Colman PLC........... 1,143,675
15,625 Reckitt & Colman PLC (Rights
expire 01/25/95)*............ 82,354
---------------
1,226,029
---------------
INSURANCE
160,000 Britannic Assurance PLC........ 983,443
167,057 Commercial Union Assurance Co.
PLC.......................... 1,322,062
300,000 Lloyds Abbey Life.............. 1,529,592
279,200 Prudential Corp. PLC........... 1,375,507
119,000 Refuge Group................... 455,984
235,000 Royal Insurance PLC............ 1,025,437
---------------
6,692,025
---------------
LEISURE
225,000 Granada Group PLC.............. 1,784,133
---------------
OIL RELATED
540,000 British Petroleum Co. PLC...... 3,589,380
376,000 Lasmo PLC...................... 852,693
---------------
4,442,073
---------------
PUBLISHING
50,000 Daily Mail & General Trust
(Series A)................... 774,180
115,000 Pearson PLC.................... 989,230
---------------
1,763,410
---------------
REAL ESTATE
205,100 Hammerson Prop. Inv. & Dev.
PLC.......................... 1,106,679
94,500 MEPC PLC....................... 561,632
---------------
1,668,311
---------------
RETAIL STORES
100,000 Great Universal Stores......... 841,432
185,000 Kingfisher PLC................. 1,273,096
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------- ---------------
<C> <S> <C>
247,000 Morrison Supermarkets.......... $ 544,694
274,000 Next PLC....................... 1,097,052
---------------
3,756,274
---------------
TELECOMMUNICATIONS
365,700 British Telecomm PLC........... 2,156,270
---------------
TRANSPORTATION
213,500 British Airways PLC............ 1,185,395
---------------
UTILITIES
130,000 Anglican Water PLC............. 1,040,998
---------------
TOTAL UNITED KINGDOM........... 52,204,536
---------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS AND RIGHTS
(IDENTIFIED COST
$137,764,279)................ 145,951,061
---------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY
AMOUNT EXPIRATION DATE/
(IN THOUSANDS) EXERCISE PRICE
- -------------- -------------------------------
<C> <S> <C>
PURCHASED PUT OPTIONS ON FOREIGN CURRENCY (0.1%)
DEM 15,685 March 1995/DEM 1.5685.......... 52,000
FFr 53,880 March 1995/FFr 5.3888.......... 141,000
NLG 8,731 March 1995/NLG 1.7461.......... 78,000
---------------
TOTAL PURCHASED PUT OPTIONS ON
FOREIGN CURRENCY (IDENTIFIED
COST $421,500)............... 271,000
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- --------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (2.0%)
COMMERCIAL PAPER (A)
FINANCE - DIVERSIFIED
$ 3,000 American Express Credit Corp.
5.80% due 01/03/95 (Amortized
Cost $2,999,033)............. 2,999,033
---------------
TOTAL INVESTMENTS (IDENTIFIED COST
$141,184,812) (B)................... 98.1% 149,221,094
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES......................... 1.9 2,816,345
------ ---------------
NET ASSETS............................ 100.0% $ 152,037,439
------ ---------------
------ ---------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
++ CONSIST OF ONE OR MORE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY ATTACHED STOCKS/WARRANTS.
(A) COMMERCIAL PAPER 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 $141,178,683; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $13,953,136 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $5,910,725, RESULTING IN NET UNREALIZED
APPRECIATION OF $8,042,411.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1994:
<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS TO EXCHANGE DELIVERY APPRECIATION/
RECEIVE FOR DATE DEPRECIATION
- --------------- ------------ -------- -------------
<S> <C> <C> <C>
SKr 1,525,000 US$ 204,478 01/03/95 $ 755
L 54,832 US$ 85,629 01/04/95 129
US$ 27,193 L 17,588 01/06/95 (315)
US$ 196,060 L 126,246 01/10/95 (1,389)
ITL 279,334,595 US$ 169,726 01/31/95 2,172
ITL 280,840,560 US$ 170,434 01/31/95 2,391
-------------
Net Unrealized Appreciation ............. $ 3,743
-------------
-------------
</TABLE>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Aerospace & Defense.......................... $ 2,117,862 1.4%
Automobiles.................................. 2,983,551 2.0
Automotive................................... 2,112,466 1.4
Auto Parts - Original Equipment.............. 1,094,800 0.1
Banking...................................... 6,243,239 4.1
Banks - Commercial........................... 734,369 0.5
Building & Construction...................... 4,140,820 2.7
Building Materials........................... 889,682 0.6
Business Services............................ 9,602,187 6.3
Cement....................................... 1,512,836 1.0
Chemicals.................................... 1,288,722 0.9
Conglomerates................................ 2,136,457 1.4
Construction Plant & Equipment............... 1,145,039 0.8
Electric Utilities........................... 5,751,157 3.8
Electrical Equipment......................... 1,337,784 0.9
Electronics.................................. 4,273,619 2.8
Engineering & Construction................... 1,203,107 0.8
Finance - Diversified........................ 2,999,033 2.0
Financial Services........................... 1,452,041 1.0
Food, Beverage, Tobacco & Household
Products.................................... 10,723,761 7.1
Foreign Government Obligations (Put
Options).................................... 271,000 0.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Forest Products, Paper, & Packing............ $ 2,680,397 1.8%
Health & Personal Care....................... 5,805,252 3.8
Household Furnishings & Appliances........... 2,487,696 1.6
Household Goods.............................. 1,226,029 0.8
Industrials.................................. 1,765,549 1.2
Insurance.................................... 8,063,173 5.3
International Trade.......................... 1,628,495 1.1
Leisure...................................... 2,717,355 1.8
Machinery.................................... 1,180,700 0.8
Machine - Diversified........................ 1,516,001 1.0
Manufacturing................................ 3,017,446 2.0
Metals & Mining.............................. 1,924,474 1.3
Multi-Industry............................... 4,117,910 2.7
Oil & Gas.................................... 1,438,462 1.0
Oil & Related................................ 6,510,618 4.3
Paper & Forest Products...................... 1,383,603 0.9
Pharmaceuticals.............................. 3,437,956 2.3
Publishing................................... 5,614,865 3.7
Real Estate.................................. 1,668,311 1.1
Retail....................................... 6,636,979 4.4
Retail Stores................................ 3,756,274 2.5
Steel........................................ 1,044,186 0.7
Telecommunications........................... 6,247,867 4.1
Textiles..................................... 1,541,292 1.0
Transportation............................... 5,231,536 3.5
Utilities.................................... 2,565,136 1.7
------------ -----
$149,221,094 98.1%
------------ -----
------------ -----
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Commercial Paper...................................................................... $ 2,999,033 2.0%
Common Stocks......................................................................... 136,563,916 89.8
Preferred Stocks...................................................................... 9,275,297 6.1
Put Options........................................................................... 271,000 0.1
Rights................................................................................ 82,354 0.1
Warrants.............................................................................. 29,494 0.0
-------------- -----
$ 149,221,094 98.1%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
COMMON STOCKS, WARRANTS, RIGHTS AND BONDS (97.9%)
AUSTRALIA (1.2%)
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
165,000 Fosters Brewing Group............. $ 143,312
-------------
METALS & MINING
200,000 M.I.M. Holdings, Ltd.............. 333,465
-------------
OIL RELATED
50,000 Santos, Ltd....................... 134,937
50,000 Woodside Petroleum, Ltd........... 183,794
-------------
318,731
-------------
TRANSPORTATION
14,500 Brambles Industries, Ltd.......... 138,535
-------------
TOTAL AUSTRALIA................... 934,043
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
CHINA (0.7%)
CHEMICALS
450,000 Yizheng Chemical Fibre Co......... 167,248
-------------
ELECTRIC UTILITIES
12,000 Shandong Huaneng (ADR)............ 115,500
-------------
TRANSPORTATION
160,000 Jinhui Shipping................... 212,800
-------------
TOTAL CHINA....................... 495,548
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
HONG KONG (19.6%)
BANKING
150,000 Dao Heng Bank..................... 426,605
150,000 Guoco Group....................... 641,846
150,000 Hang Seng Bank, Ltd............... 1,076,207
50,000 Hong Kong & Shanghai Banking Corp.
Holdings........................ 539,719
750,000 International Bank of Asia........ 264,204
-------------
2,948,581
-------------
COMPUTER SERVICES
260,000 Hanny Magnetics Holdings, Ltd..... 21,511
-------------
CONGLOMERATES
875,000 China Merchants Hai Hong Holding
Co., Ltd........................ 180,984
180,000 Citic Pacific, Ltd................ 433,973
325,000 Hutchison Whampoa, Ltd............ 1,315,041
91,200 Jardine Matheson Holdings, Ltd.... 651,386
60,000 Swire Pacific, Ltd. (A Shares).... 373,861
-------------
2,955,245
-------------
FINANCE
140,000 Dah Sing Financial Holdings....... 296,813
-------------
LEISURE
850,000 CDL Hotels International, Ltd..... 335,143
95,000 Hong Kong & Shanghai Hotels,
Ltd............................. 109,915
870,000 Regal Hotels International........ 186,698
-------------
631,756
-------------
MANUFACTURING
600,000 Singamas Container Holdings....... 174,520
-------------
MISCELLANEOUS
540,000 Harbin Power Equipment............ 181,501
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
REAL ESTATE
375,000 Cheung Kong Holdings, Ltd......... $ 1,527,051
500,000 Great Eagle Holdings Co........... 200,375
80,000 Henderson Land Development........ 381,617
140,000 Hong Kong Land Holdings, Ltd...... 273,286
230,000 Sun Hung Kai Properties, Ltd...... 1,373,667
80,000 Wharf Holdings.................... 269,924
-------------
4,025,920
-------------
RETAIL STORES
300,000 Dickson Concepts International.... 195,850
-------------
TELECOMMUNICATIONS
500,000 Champion Technology Holdings...... 104,066
700,000 Hong Kong Telecommunications,
Ltd............................. 1,334,755
1,000,000 S. Megga International Holdings,
Ltd............................. 112,468
-------------
1,551,289
-------------
TRANSPORTATION
300,000 Cathay Pacific Airlines........... 436,300
-------------
UTILITIES
95,500 China Light & Power............... 407,407
350,000 Consolidated Electric Power....... 769,181
70,000 Hong Kong Electric Holdings....... 191,390
-------------
1,367,978
-------------
TOTAL HONG KONG................... 14,787,264
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
INDONESIA (6.8%)
AUTOMOTIVE
160,000 PT Gadjah Tunggal................. 216,659
-------------
BANKING
200,000 PT Bank Indonesia Dagang
Nasional........................ 334,547
180,000 PT Bank International Indonesia... 565,316
-------------
899,863
-------------
BUILDING & CONSTRUCTION
US$ 200M PT Eka Gunatama Mandiri 4.0% due
10/04/97 (Conv.)................ 178,000
-------------
CONTRUCTION PLANT & EQUIPMENT
250,000 Citra Marga Nusaphala Persada..... 295,858
-------------
FINANCIAL SERVICES
1 Peregrine Indonesia (Units)++*-
144A**.......................... 165,000
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
US$ 150 M Global Mark International 3.5% due
04/06/97 (Conv.)................ 149,250
150,000 PT Hanjaya Mandala Sampoerna...... 730,541
68,500 PT Mayora Indah................... 333,614
11,500 PT Mayora Indah (Local)........... 56,008
63,400 PT Sinar Mas Argo Research &
Technology Corp................. 80,801
-------------
1,350,214
-------------
FOREST PRODUCTS, PAPER & PACKAGING
100,000 Pab K Tjiwi Kimia................. 186,618
50,000 Pab K Tjiwi Kimia (Local)......... 93,309
12,000 PT Barito Pacific Timber.......... 18,980
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
336,000 PT Indah Kiat Paper Co............ $ 397,633
130,000 PT International Indorayon
Utama........................... 337,278
-------------
1,033,818
-------------
MANUFACTURING
100,000 PT United Tractors................ 213,928
-------------
REAL ESTATE
26,000 Modernland Realty, Ltd............ 71,006
60,000 PT Dharmala International......... 54,620
-------------
125,626
-------------
TELECOMMUNICATIONS
20,000 PT Indosat........................ 71,689
75,000 PT Indosat (Local)................ 268,833
-------------
340,522
-------------
WIRE & CABLE
200,000 PT Kabelmetal Indonesia........... 273,100
-------------
TOTAL INDONESIA................... 5,092,588
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
JAPAN (18.7%)
AGRICULTURE
2,000 Yukiguni Maitake Co., Ltd......... 66,566
-------------
APPAREL
3,500 Goldwin, Inc...................... 34,737
-------------
AUTOMOTIVE
Y 14,000M Toyota Motor Corp. 1.20% due
01/28/98 (Conv.)................ 154,246
-------------
BANKING
US$ 120M Bank of Tokyo 3.375% due 03/31/04
(Conv.)......................... 132,600
8,000 Dai-Ichi Kangyo Bank.............. 150,777
12,000 Mitsui Trust & Banking............ 125,113
14,000 Sanwa Bank, Ltd................... 277,895
11,000 Shizuoka Bank, Ltd................ 135,639
7,000 Sumitomo Bank, Ltd................ 133,333
10,000 Sumitomo Trust & Banking.......... 140,351
-------------
1,095,708
-------------
BUILDING & CONSTRUCTION
2,000 Hosoda Corp....................... 29,474
4,000 Ichiken Co., Ltd.................. 57,343
3,000 Kaneshita Construction............ 40,902
1,000 Maezawa Kasei Industries.......... 55,639
2,000 Sankyo Frontier Co., Ltd.......... 62,155
6,000 Sumitomo Forestry................. 94,436
-------------
339,949
-------------
BUSINESS SERVICES
2,000 Catena Corp....................... 39,699
1,000 Nippon Kanzai Co.................. 52,231
2,000 Secom Co.......................... 124,311
4,000 Tanseisha Co...................... 58,947
-------------
275,188
-------------
CHEMICALS
27,000 Mitsubishi Chemical Corp.......... 148,331
12,000 Shin-Etsu Chemical Co............. 238,195
3,000 Shinto Paint Co................... 47,519
2,000 Sk Kaken Co., Ltd................. 94,236
-------------
528,281
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
COMPUTER SERVICES
2,000 Enix Corp......................... $ 64,161
4,000 Meitec Corp....................... 74,586
3,000 Nippon Computer System Co......... 38,196
-------------
176,943
-------------
COMPUTERS
14,000 Fujitsu, Ltd...................... 141,754
1,000 I-O Data Device, Inc.............. 48,120
2,000 Japan Digital Laboratory Co.,
Ltd............................. 57,745
-------------
247,619
-------------
COMPUTERS - SYSTEMS
2,000 Daiwabo Information Systems Co.... 54,135
-------------
CONGLOMERATES
11,000 Mitsubishi Corp................... 144,461
-------------
ELECTRIC UTILITIES
4,300 Hokkaido Electric Power........... 98,286
-------------
ELECTRONICS
5,000 Aiwa Co........................... 122,807
3,000 Canon, Inc........................ 50,827
Y 9,000M Canon, Inc. 1.0% due 12/20/02
(Conv.)......................... 102,857
15,000 Hitachi, Ltd...................... 148,722
2,000 Katsuragawa Electric Co........... 42,707
2,000 Keyence Corp...................... 226,566
2,000 Kyocera Corp...................... 148,170
2,400 Mabuchi Motor Co.................. 180,451
2,000 Murata Manufacturing Co., Ltd..... 77,193
2,000 Nihon Dempa Kogyo................. 68,772
8,000 Omron Corp........................ 146,767
9,000 Sharp Corp........................ 162,407
3,100 Sony Corp......................... 175,589
1,000 Tokyo Electron, Ltd............... 31,078
Y 10,000M Tokyo Electron, Ltd. 0.9% due
09/30/03 (Conv.)................ 100,251
-------------
1,785,164
-------------
ENGINEERING & CONSTRUCTION
7,000 Maeda Road Construction........... 115,789
2,000 Meiden Engineering Co............. 36,091
5,000 Raito Kogyo Co.................... 103,759
3,000 Sanshin Corp...................... 38,195
5,000 Takada Kiko Steel................. 47,368
2,000 Tone Geo Technology Co., Ltd...... 71,179
2,000 Yokogawa Construction Co.......... 45,113
-------------
457,494
-------------
ENVIRONMENTAL CONTROL
4,000 Suido Kiko Kaisha................. 53,734
-------------
FINANCIAL SERVICES
20,000 Daiwa Securities.................. 288,722
2,000 Nichiei Co., Ltd. (Kyoto)......... 128,321
1,000 Nissin Co., Ltd................... 77,494
13,000 Nomura Securities Co., Ltd........ 269,774
2,300 Promise Co., Ltd.................. 117,363
1,000 Sanyo Shinpan Finance Corp........ 96,341
-------------
978,015
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
5,000 Amway Japan, Ltd.................. 171,931
7,000 Nippon Meat Packers............... 91,930
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
1,000 Plenus Co., Ltd................... $ 72,080
3,300 Sanyo Coca Cola Bottling.......... 49,293
4,000 Stamina Foods, Inc................ 57,343
4,000 Steak Miya Co..................... 52,130
4 Yoshinoya D & C Co., Ltd.......... 50,125
-------------
544,832
-------------
HEALTH & PERSONAL CARE
3,000 Kawasumi Laboratories, Inc........ 72,782
4,000 Uni-Charm Corp.................... 96,642
-------------
169,424
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
1,000 Beltecno Corp..................... 24,060
2,200 Noritz Corp....................... 41,023
Y 5,000M Rinnai Corp. 1.8% due 09/30/98
(Conv.)......................... 48,622
-------------
113,705
-------------
INSURANCE
12,000 Tokio Marine & Fire Insurance..... 146,767
18,000 Yasuda Fire & Marine Insurance.... 131,729
-------------
278,496
-------------
MACHINERY
7,200 Comson Corp....................... 93,113
200 DMW Corp.......................... 26,266
4,000 Fanuc, Ltd........................ 188,070
2,000 Fuji Machine Manufacturing Co..... 65,764
2,000 Hitachi Medical Corp.............. 36,090
2,000 Sankyo Engineering................ 59,549
3,000 Sansei Yusoki Co., Ltd............ 49,624
3,100 THK Co............................ 78,316
1,000 Y.A.C. Co., Ltd................... 59,148
-------------
655,940
-------------
MANUFACTURED HOUSING
11,000 Daiwa House Industry.............. 155,489
3,000 Higashi Nihon House............... 71,880
3,000 Nissei Building Kogyo............. 34,586
-------------
261,955
-------------
MANUFACTURING
3,000 Arc Land Sakamoto................. 73,684
4,000 Bridgestone Metalpha Corp......... 74,185
7,000 Dai Nippon Printing Co............ 119,298
6,000 Itoki Crebio Corp................. 60,752
20,000 Minebea Co........................ 168,421
20,000 Mitsubishi Heavy Industries,
Ltd............................. 152,381
3,000 Nichiha Corp...................... 55,940
6,000 Nippon Electric Glass Co.......... 119,099
8,000 Nippon Thompson Co................ 57,103
9,000 Takara Standard Co................ 100,150
-------------
981,013
-------------
METALS & MINING
39,000 Kawasaki Steel Corp............... 163,038
23,000 Nippon Light Metal Co............. 153,104
40,000 Nippon Steel Corp................. 150,376
-------------
466,518
-------------
MISCELLANEOUS
1,000 Maruko Co., Ltd................... 70,677
2,000 Misumi Corp....................... 77,594
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
4,000 Tasaki Shinju Co., Ltd............ $ 51,328
3,000 Yagi Corp......................... 52,331
-------------
251,930
-------------
MULTI - INDUSTRY
3,300 Trusco Nakayama Corp.............. 79,068
-------------
NATURAL GAS
24,000 Tokyo Gas Co., Ltd................ 103,940
-------------
OIL RELATED
8,000 General Sekiyu.................... 78,356
-------------
PHARMACEUTICALS
8,000 Eisai Co., Ltd.................... 130,727
SFr 50M Kuraya Corp. 0.5% due 03/31/98
(Conv.)......................... 32,090
2,000 Ono Pharmaceutical Co............. 96,241
4,000 Santen Pharmaceutical Co.......... 111,078
2,000 Seikagaku Corp.................... 90,025
1,000 Towa Pharmaceutical Co., Ltd...... 80,100
-------------
540,261
-------------
REAL ESTATE
4,000 Chubu Sekiwa Real Estate.......... 51,730
4,000 Fuso Lexel, Inc................... 46,115
3,000 Kansai Sekiwa Real Estate......... 54,135
13,000 Mitsui Fudosan Co................. 138,145
5,000 Sekiwa Real Estate................ 55,639
5,000 Tohoku Misawa Homes Co............ 54,637
-------------
400,401
-------------
RETAIL
2,000 Aoyama Trading Co................. 45,514
1,500 Autobacs Seven Co................. 178,947
2,000 Belluna Co., Ltd.................. 85,014
1,000 Fast Retailing Co., Ltd........... 109,273
2,000 Home Wide Corp.................... 36,291
Y 11,000M Izumi Co., Ltd. 1.7% due 08/30/02
(Conv.)......................... 142,476
6,000 Juntendo Co....................... 52,932
2,000 Kahma Co., Ltd.................... 59,749
3,000 Kuroganeya Co..................... 59,850
3,000 Ministop Co., Ltd................. 88,120
3,000 Mr. Max Corp...................... 77,293
1,440 Nissen Co......................... 44,463
3,000 Olympic Sports Co., Ltd........... 54,135
4,000 Shimachu Co., Ltd................. 143,960
2,000 Sumiya Co......................... 34,887
1,000 Tsutsumi Jewelry.................. 91,228
3,000 Xebio Co.......................... 118,496
-------------
1,422,628
-------------
RETAIL - DRUG STORES
1,000 Sundrug Co........................ 70,175
-------------
TELECOMMUNICATIONS
3,000 C Cube Corp....................... 28,571
20 DDI Corp.......................... 172,431
1,000 Kokusai Den....................... 98,346
5,000 Nippon Comsys Co.................. 69,674
6,000 Takamisawa Electric Co............ 60,031
2,000 Uniden Corp....................... 50,326
-------------
479,379
-------------
TEXTILES
11,000 Kuraray Co........................ 130,126
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
TRANSPORTATION
30 East Japan Railway................ $ 149,774
18,000 Fukuyama Transporting Co.......... 194,888
15,000 Kamigumi Co....................... 159,398
-------------
504,060
-------------
WAREHOUSE
4,000 Chuo Warehouse Co................. 63,759
-------------
TOTAL JAPAN....................... 14,086,492
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
MALAYSIA (13.5%)
AUTOMOTIVE
70,000 Cycle and Carriage Bintang
Berhad.......................... 253,524
65,000 Edaran Otomobil Nasional.......... 493,735
-------------
747,259
-------------
BANKING
150,000 DCB Holdings Berhad............... 364,135
125,000 Hong Leong Bank Berhad............ 335,258
120,000 Malayan Banking Berhad............ 723,571
80,000 Public Bank Berhad................ 159,749
260,000 Public Bank Berhad (CLOB)......... 539,286
-------------
2,121,999
-------------
BUILDING & CONSTRUCTION
110,000 Hume Industries Malayan Berhad.... 490,995
120,000 Kedah Cement Holdings Berhad...... 155,991
75,000 Metacorp Berhad................... 202,623
80,000 Nam Fatt Berhad................... 236,492
115,000 United Engineers Berhad........... 567,345
-------------
1,653,446
-------------
CONGLOMERATES
250,000 Renong Berhad..................... 309,319
-------------
ELECTRIC EQUIPMENT
166,666 Leader Universal Holdings......... 535,106
-------------
ELECTRIC UTILITIES
23,000 Tenaga Nasional Berhad............ 90,955
-------------
ENTERTAINMENT
95,000 Genting Berhad.................... 814,605
-------------
FINANCIAL SERVICES
42,000 Hong Leong Credit Berhad.......... 203,915
150,000 Public Finance Berhad............. 249,021
150,000 Rashid Hussain Berhad............. 393,500
-------------
846,436
-------------
FOREST PRODUCTS, PAPER & PACKAGING
6,000 Aokam Perdana Berhad.............. 37,118
US$ 200M Aokam Perdana Berhad 3.5% due
06/13/04 (Conv.)................ 192,000
-------------
229,118
-------------
MANUFACTURING
20,000 O.Y.L. Industries Berhad.......... 105,717
11,250 O.Y.L. Industries Berhad (Rights
expire 01/09/95)*............... 21,760
-------------
127,477
-------------
MISCELLANEOUS
196,000 Taiping Consolidated Berhad....... 328,457
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
MULTI - INDUSTRY
200,000 Boustead Holdings Berhad.......... $ 349,256
-------------
PLANTATION
150,000 Kuala Lumpur Kepong Berhad........ 399,374
-------------
REAL ESTATE
155,000 Land & General Berhad............. 643,305
225,000 Pelangi Berhad.................... 271,339
-------------
914,644
-------------
TELECOMMUNICATIONS
77,000 Telekom Malaysia.................. 521,574
-------------
TEXTILES
200,000 MWE Holdings...................... 222,397
-------------
TOTAL MALAYSIA.................... 10,211,422
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
PAKISTAN (0.2%)
TELECOMMUNICATIONS
1,100 Pakistan Telecom (GDS)............ 147,400
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
PHILIPPINES (3.3%)
BANKS - COMMERCIAL
16,780 Philippine National Bank.......... 239,219
-------------
BUILDING & CONSTRUCTION
25,000 Bacnotan Consolidated, Inc........ 289,256
-------------
ELECTRIC UTILITIES
30,000 Manila Electric Co. (B Shares).... 415,289
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
55,000 San Miguel Corp. (B Shares)....... 290,909
-------------
FOREST PRODUCTS, PAPER & PACKAGING
525,000 Paper Industries Corp. of the
Philippines (Class A)........... 347,107
-------------
OIL RELATED
1,000,000 Belle Corp........................ 342,975
-------------
REAL ESTATE
950,000 Filinvest Land, Inc............... 384,711
-------------
TELECOMMUNICATIONS
3,700 Philippine Long Distance Telephone
(ADR)........................... 203,963
-------------
TOTAL PHILIPPINES................. 2,513,429
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
SINGAPORE (14.2%)
AUTOMOTIVE
51,000 Cycle and Carriage................ 458,860
-------------
BANKING
35,000 Development Bank of Singapore,
Ltd............................. 360,577
90,000 Overseas Union Bank............... 525,412
65,000 United Overseas Bank Corp., Ltd... 687,500
-------------
1,573,489
-------------
ELECTRONICS
18,000 Creative Technology............... 256,500
73,000 Venture Manufacturing, Ltd........ 160,440
-------------
416,940
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
ENGINEERING & CONSTRUCTION
137,000 Van Der Horst..................... $ 421,538
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
40,000 Fraser & Neave, Ltd............... 414,835
-------------
HOTELS
301,000 Marco Polo Developments, Ltd...... 430,000
65,000 Overseas Union Enterprise......... 368,304
-------------
798,304
-------------
LEISURE
280,000 Republic Hotels & Resorts......... 461,538
-------------
MACHINERY - DIVERSIFIED
77,000 Keppel Corp., Ltd................. 655,769
-------------
METALS & MINING
140,000 Amtek Engineering, Ltd............ 245,193
-------------
PUBLISHING
25,000 Singapore Press Holdings.......... 455,014
-------------
REAL ESTATE
20,000 Bukit Sembawang Estates........... 391,484
134,000 City Developments, Ltd............ 750,069
165,000 DBS Land.......................... 491,827
100,000 Malayan Credit, Ltd............... 222,527
320,000 United Overseas Land, Ltd......... 617,582
-------------
2,473,489
-------------
SHIPBUILDING
146,000 Far East Levingston............... 676,854
40,000 Jurong Shipyard, Ltd.............. 307,692
100,000 Sembawang Maritime................ 484,203
-------------
1,468,749
-------------
TRANSPORTATION
350,000 Pacific Carriers, Ltd............. 338,942
55,000 Singapore International
Airline, Ltd.................... 506,181
-------------
845,123
-------------
TOTAL SINGAPORE................... 10,688,841
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
SOUTH KOREA (5.5%)
AUTOMOTIVE
10,000 Hyundai Motor Co., Ltd. (GDR)..... 185,000
20,000 Kai Motors Corp. (GDS)............ 350,000
-------------
535,000
-------------
ELECTRONICS
US$ 315M Daewoo Electronics Co. 3.5% due
12/31/07 (Conv.)................ 398,475
330 Samsung (GDR)..................... 16,335
2,000 Samsung Electronics (GDR)......... 99,000
8,000 Samsung Electronics (GDS)......... 396,000
8,000 Samsung Electronics (GDS) (New
Shares)......................... 396,000
-------------
1,305,810
-------------
MISCELLANEOUS
US$ 400M Kia Precisions Works 0.5% due
12/31/09 (Conv.)................ 404,000
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
MULTI - INDUSTRY
US$ 340M Daewoo Corp. 0.25% due 12/31/08
(Conv.)......................... $ 358,700
SFr 100M Daewoo Corp. 3.25% due 12/31/97
(Conv.)......................... 85,575
US$ 250M Kolon International Corp. 1.0% due
12/31/08 (Conv.)................ 212,500
-------------
656,775
-------------
OIL RELATED
US$ 315M Sangyong Oil 3.75% due 12/31/08
(Conv.) ............. 334,688
20,000 Yukong, Ltd. (GDS)................ 300,000
SFr 300M Yukong, Ltd. 1.0% due 12/31/98
(Conv.)......................... 369,040
-------------
1,003,728
-------------
STEEL & IRON
7,300 Pohang Iron & Steel, Ltd. (ADR)... 219,000
-------------
TOTAL SOUTH KOREA................. 4,124,313
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
TAIWAN (4.6%)
BUILDING & CONSTRUCTION
SFr 300M Pacific Construction Corp. 2.125%
due 10/01/98 (Conv.)............ 252,139
-------------
ELECTRONICS
US$ 100M Acer, Inc. 4.0% due
06/10/01 (Conv.)................ 239,000
20,000 Microelectronics Technology
(GDS)........................... 195,000
US$ 400M United Micro Electronic 1.25% due
06/08/04 (Conv.)................ 614,000
-------------
1,048,000
-------------
RETAIL
US$ 200M Far Eastern Department Store 3.0%
due 07/06/01 (Conv.) - 144A**... 176,000
-------------
TEXTILES
US$ 300M Far Eastern Textile 4.0% due
10/07/06 (Conv.)................ 330,000
42,989 Tuntex Distinct (GDS)............. 537,363
-------------
867,363
-------------
TRANSPORTATION
US$ 500M U-Ming Marine Holdings 1.5% due
02/07/01 (Conv.)................ 550,000
US$ 500M Yang Ming Marine 2.0% due 10/06/01
(Conv.)......................... 562,500
-------------
1,112,500
-------------
TOTAL TAIWAN...................... 3,456,002
-------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
THAILAND (9.6%)
AUTOMOTIVE
16,000 Swedish Motor Corp................ 78,422
-------------
BANKING
30,000 Bangkok Bank...................... 320,383
250,000 Krung Thai Bank, Ltd.............. 836,820
350,000 Siam City Bank.................... 446,304
33,000 Siam Commercial Bank, Ltd......... 302,451
60,000 Thai Farmers Bank................. 487,747
116,000 Thai Military Bank, Ltd........... 489,978
-------------
2,883,683
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
BUILDING & CONSTRUCTION
5,000 Siam Cement Co.................... $ 299,661
15,600 Siam City Cement Co., Ltd......... 266,061
50,000 Tipco Asphalt Co., Ltd............ 402,471
-------------
968,193
-------------
ELECTRIC UTILITIES
350,000 Electric Generating Co............ 306,834
-------------
FINANCIAL SERVICES
10,000 Finance One Co., Ltd.............. 155,409
32,000 Phatra Thanakit Co., Ltd.......... 247,380
33,000 Securities One, Ltd............... 276,151
1,833 Securities One, Ltd. (Warrants due
98)*............................ 730
-------------
679,670
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
12,500 CP Feedmill Co.................... 85,674
-------------
FOREST PRODUCTS, PAPER & PACKAGING
24,000 Siam Pulp & Paper Co.............. 86,073
-------------
METALS & MINING
20,000 Ban Pu Coal Co, Ltd............... 438,334
80,000 Sahaviriya Steel Industries....... 204,025
-------------
642,359
-------------
REAL ESTATE
20,000 Land & House Co................... 357,042
-------------
TELECOMMUNICATIONS
16,000 Advanced Information Services..... 226,977
20,000 Jasmine International............. 358,637
20,000 United Communication, Inc......... 283,722
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
20,000 United Communication, Inc. (Rights
expire 01/13/95)*............... $ 275,752
-------------
1,145,088
-------------
TOTAL THAILAND.................... 7,233,038
TOTAL COMMON STOCKS, WARRANTS,
RIGHTS AND BONDS (IDENTIFIED
COST $76,616,857)............... 73,770,380
-------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY
AMOUNT EXPIRATION DATE/
(IN THOUSANDS) EXERCISE PRICE
- --------------- ----------------------------------
<C> <S> <C>
PURCHASED PUT OPTIONS ON
FOREIGN CURRENCY (0.2%)
Y 602,040 March 29, 1995 / Y100.34.......... 70,200
Y 389,800 May 4, 1995 / Y97.45.............. 108,000
-------------
TOTAL PURCHASED PUT OPTIONS ON
FOREIGN CURRENCY (IDENTIFIED
COST $171,000).................. 178,200
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (1.3%)
U.S. GOVERNMENT AGENCY (A)
$ 1,000 Federal Home Loan Banks 5.75% due
01/03/95 (Amortized Cost
$999,681)....................... 999,681
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$77,787,538) (B)....................... 99.4% 74,948,261
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES............................ 0.6 477,078
------ ---------------
NET ASSETS............................... 100.0% $ 75,425,339
------ ---------------
------ ---------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
GDR GLOBAL DEPOSITORY RECEIPT.
GDS GLOBAL DEPOSITORY SHARE.
++ CONSISTS OF ONE OR MORE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED STOCKS/WARRANTS.
* NON-INCOME PRODUCING SECURITY.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
(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 $77,990,763; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,873,082 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $6,915,585, RESULTING IN NET UNREALIZED
DEPRECIATION OF $3,042,503.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1994:
<TABLE>
<CAPTION>
IN
CONTRACTS TO EXCHANGE DELIVERY UNREALIZED
RECEIVE FOR DATE APPRECIATION
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
MYR 31,000 US$ 12,112 01/06/95 $ 26
MYR 90,000 US$ 35,173 01/09/95 66
---
Unrealized Appreciation ........................... $92
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------- ------------ ----------
<S> <C> <C>
Agriculture................ $ 66,566 0.1%
Apparel.................... 34,737 0.0
Automotive................. 2,190,446 2.9
Banking.................... 11,523,311 15.3
Banks - Commercial......... 239,219 0.3
Building & Construction.... 3,680,984 4.9
Business Services.......... 275,188 0.4
Chemicals.................. 695,529 0.9
Computer Services.......... 198,455 0.3
Computers.................. 247,620 0.3
Computers - Systems........ 54,135 0.1
Conglomerates.............. 3,409,025 4.5
Construction Plant &
Equipment................. 295,858 0.4
Currency Options........... 178,200 0.2
Electric Equipment......... 535,106 0.7
Electric Utilities......... 1,026,864 1.4
Electronics................ 4,555,913 6.0
Engineering &
Construction.............. 879,034 1.2
Entertainment.............. 814,605 1.1
Environmental Control...... 53,734 0.1
Finance.................... 296,813 0.4
Financial Services......... 2,669,122 3.5
Food, Beverage, Tobacco &
Household Products........ 2,829,776 3.8
Forest Products, Paper &
Packaging................. 1,696,117 2.3
Health & Personal Care..... 169,424 0.2
Hotels..................... 798,304 1.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------- ------------ ----------
<S> <C> <C>
Household Furnishings &
Appliances................ $ 113,704 0.2%
Insurance.................. 278,496 0.4
Leisure.................... 1,093,295 1.4
Machinery.................. 655,940 0.9
Machinery - Diversified.... 655,769 0.9
Manufactured Housing....... 261,955 0.3
Manufacturing.............. 1,496,938 2.0
Metals & Mining............ 1,687,535 2.2
Miscellaneous.............. 1,165,888 1.6
Multi - Industry........... 1,085,098 1.4
Natural Gas................ 103,940 0.1
Oil Related................ 1,743,790 2.3
Pharmaceuticals............ 540,261 0.7
Plantation................. 399,374 0.5
Publishing................. 455,014 0.6
Real Estate................ 8,681,834 11.5
Retail..................... 1,598,630 2.1
Retail - Drug Stores....... 70,175 0.1
Retail Stores.............. 195,850 0.3
Shipbuilding............... 1,468,750 1.9
Steel & Iron............... 219,000 0.3
Telecommunications......... 4,389,215 5.8
Textiles................... 1,219,886 1.6
Transportation............. 3,249,320 4.3
U.S. Government Agency..... 999,681 1.3
Utilities.................. 1,367,979 1.8
Warehouse.................. 63,759 0.1
Wire & Cable............... 273,100 0.4
------------ ---
$ 74,948,261 99.4%
------------ ---
------------ ---
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- --------------------------------------------------------------------------------------- ------------ ----------
<S> <C> <C>
Bonds.................................................................................. $ 6,119,009 8.1%
Common Stocks.......................................................................... 67,353,129 89.4
Put Options............................................................................ 178,200 0.2
Rights................................................................................. 297,512 0.4
U.S. Government Agency................................................................. 999,681 1.3
Warrants............................................................................... 730 0.0
------------ ---
$ 74,948,261 99.4%
------------ ---
------------ ---
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (75.8%)
BASIC RESOURCES (0.8%)
15,000 International Paper Co.............. $ 1,130,624
7,000 Union Carbide Corp.................. 205,625
11,100 USX-U.S. Steel Group, Inc........... 394,050
---------------
1,730,299
---------------
BEVERAGES (1.1%)
48,000 Coca Cola Co........................ 2,472,000
---------------
BIOTECHNOLOGY (0.2%)
10,000 Biogen, Inc.*....................... 412,500
---------------
CABLE/CELLULAR (3.4%)
20,000 Airtouch Communications Corp.*...... 582,500
30,000 California Microwave, Inc.*......... 1,080,000
30,000 DSC Communications Corp.*........... 1,080,000
20,000 General Instrument Corp.*........... 600,000
22,000 Glenayre Technologies, Inc.*........ 1,270,500
54,000 Motorola, Inc....................... 3,125,250
---------------
7,738,250
---------------
COMMERCIAL SERVICES (4.6%)
18,000 Alternative Resources Corp.*........ 558,000
18,500 Automatic Data Processing, Inc...... 1,082,250
49,500 Computer Sciences Corp.*............ 2,524,500
48,000 First Data Corp..................... 2,274,000
15,000 First Financial Management Corp..... 924,375
70,000 General Motors Corp. (Class E)...... 2,695,000
5,000 Omnicom Group, Inc.................. 258,750
---------------
10,316,875
---------------
COMPUTER EQUIPMENT (1.4%)
100,000 EMC Corp. Mass.*.................... 2,162,500
30,000 Silicon Graphics*................... 926,250
---------------
3,088,750
---------------
COMPUTER SOFTWARE (5.9%)
40,000 Autodesk, Inc....................... 1,570,000
62,000 Cadence Design Systems, Inc.*....... 1,278,750
80,000 Informix Corp.*..................... 2,560,000
30,000 Microsoft Corp.*.................... 1,833,750
40,000 Oracle Systems Corp.*............... 1,765,000
20,000 Parametric Technology Corp.*........ 685,000
60,000 Peoplesoft, Inc.*................... 2,235,000
80,000 Symantec Corp.*..................... 1,400,000
---------------
13,327,500
---------------
COSMETICS (1.2%)
59,000 International Flavors & Fragrances,
Inc............................... 2,728,750
---------------
DRUGS (6.1%)
64,500 Abbott Laboratories, Inc............ 2,104,313
100,000 Astra AB (ADR)*..................... 2,575,000
22,000 Lilly (Eli) & Co.................... 1,443,750
27,000 Pfizer, Inc......................... 2,085,750
40,000 Scherer (R.P.)*..................... 1,815,000
24,000 Schering-Plough Corp................ 1,776,000
27,000 Warner-Lambert Co................... 2,079,000
---------------
13,878,813
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
ELECTRIC EQUIPMENT (1.3%)
22,000 AMP, Inc............................ $ 1,600,500
37,500 Molex, Inc.......................... 1,293,750
---------------
2,894,250
---------------
ELECTRONICS - SEMICONDUCTORS/ COMPONENTS (1.5%)
30,000 Intel Corp.......................... 1,908,750
15,000 LSI Logic Corp.*.................... 605,625
20,000 Micron Technology, Inc.............. 882,500
---------------
3,396,875
---------------
ELECTRONICS - SPECIALTY (2.9%)
50,000 Altera Corp.*....................... 2,087,500
27,000 Analog Devices*..................... 948,375
50,000 Maxim Integrated Products, Inc.*.... 1,750,000
30,000 Xilinx, Inc.*....................... 1,770,000
---------------
6,555,875
---------------
ENTERTAINMENT (2.6%)
62,000 Broderbund Software, Inc.*.......... 2,898,500
50,000 Macromedia, Inc.*................... 1,275,000
50,000 Sierra On-Line, Inc.*............... 1,687,500
---------------
5,861,000
---------------
ENTERTAINMENT/GAMING (0.2%)
7,000 National Gaming Corp.*.............. 84,000
13,000 Primadonna Resorts, Inc.*........... 308,750
---------------
392,750
---------------
FINANCIAL (3.4%)
20,000 American International Group, Inc... 1,960,000
45,000 Crescent Real Estate Equities....... 1,220,625
15,000 General Re Corp..................... 1,856,250
55,000 Green Tree Financial Corp........... 1,670,625
40,000 MBNA Corp........................... 935,000
---------------
7,642,500
---------------
FOODS (3.5%)
105,000 Archer-Daniels-Midland Co........... 2,165,625
52,000 ConAgra, Inc........................ 1,625,000
40,000 CPC International, Inc.............. 2,130,000
30,000 IBP, Inc............................ 907,500
58,000 Pet, Inc............................ 1,145,500
---------------
7,973,625
---------------
HEALTHCARE PRODUCTS & SERVICES (3.9%)
53,200 Genesis Health Ventures, Inc.*...... 1,682,450
35,000 Healthsource, Inc.*................. 1,430,625
30,000 Healthsouth Rehabilitation Corp.*... 1,110,000
40,000 Horizon Healthcare Corp.*........... 1,120,000
90,000 Humana, Inc.*....................... 2,036,250
40,000 Shared Medical Systems Corp......... 1,310,000
---------------
8,689,325
---------------
HOTELS / MOTELS (2.5%)
70,000 Hospitality Franchise System,
Inc.*............................. 1,855,000
109,500 La Quinta Inns, Inc................. 2,340,563
50,000 Marriott International, Inc......... 1,406,250
---------------
5,601,813
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
HOUSEHOLD PRODUCTS (4.9%)
31,000 Clorox Co........................... $ 1,825,125
40,000 Duracell International, Inc......... 1,735,000
30,000 Gillette Co......................... 2,242,500
40,000 Procter & Gamble Co................. 2,480,000
20,000 Scott Paper Co...................... 1,382,500
50,000 Sunbeam-Oster, Inc.................. 1,287,500
---------------
10,952,625
---------------
INDUSTRIALS (0.7%)
37,000 Fluor Corp.......................... 1,595,625
---------------
MEDIA GROUP (3.1%)
18,000 Capital Cities/ABC.................. 1,534,500
8,055 CBS, Inc............................ 446,046
28,000 Clear Channel Communications,
Inc.*............................. 1,421,000
60,000 Infinity Broadcasting Corp. (Class
A)*............................... 1,890,000
75,000 Telecommunications, Inc. (Class
A)*............................... 1,631,250
2,000 Viacom, Inc. (Class A)*............. 83,250
---------------
7,006,046
---------------
MEDICAL PRODUCTS & SUPPLIES (3.6%)
70,000 Allergan, Inc....................... 1,977,500
45,000 Johnson & Johnson................... 2,463,750
45,000 Medtronic, Inc...................... 2,503,125
26,000 Omnicare, Inc....................... 1,140,750
---------------
8,085,125
---------------
OIL (5.3%)
35,000 Amoco Corp.......................... 2,069,375
65,000 Apache Corp......................... 1,625,000
175 British Petroleum PLC (ADR)......... 13,977
23,000 Mobil Corp.......................... 1,937,750
50,000 Norsk Hydro AS (ADR)................ 1,956,250
109,500 Occidental Petroleum Corp........... 2,107,875
17,000 Royal Dutch Petroleum Co. (ADR)..... 1,827,500
25,000 Snyder Oil Corp..................... 371,875
---------------
11,909,602
---------------
POLLUTION CONTROL (1.4%)
59,300 Browning-Ferris Industries, Inc..... 1,682,638
59,600 WMX Technologies, Inc............... 1,564,500
---------------
3,247,138
---------------
RESTAURANTS (0.1%)
5,000 Lone Star Steakhouse & Saloon*...... 96,250
5,000 Starbucks Corp.*.................... 136,250
---------------
232,500
---------------
RETAIL (3.2%)
22,000 Albertson's, Inc.................... 638,000
8,300 Callaway Golf Co.................... 274,938
20,500 Corporate Express, Inc.............. 394,625
73,000 Home Depot, Inc..................... 3,358,000
85,000 Officemax, Inc.*.................... 2,252,500
11,000 Safeway, Inc.*...................... 350,625
---------------
7,268,688
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS (4.1%)
10,000 Ascend Communications, Inc.*........ $ 407,500
30,000 Bay Networks, Inc.*................. 877,500
65,000 Cisco Systems, Inc.*................ 2,275,000
20,000 Summa Four, Inc.*................... 525,000
50,000 Tele Danmark, Inc. (ADR)*........... 1,275,000
20,000 Tellabs, Inc.*...................... 1,110,000
52,000 ThreeCom Corp.*..................... 2,678,000
---------------
9,148,000
---------------
TRANSPORTATION (0.5%)
30,000 Wisconsin Central Transportation
Corp.*............................ 1,222,500
---------------
UTILITIES - ELECTRIC (2.4%)
80,000 FPL Group, Inc...................... 2,810,000
130,000 Southern Co......................... 2,600,000
---------------
5,410,000
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$163,030,095)..................... 170,779,599
PREFERRED STOCKS (1.3%)
COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.3%)
38,500 Nokia Corp. (ADR) (Identified Cost
$2,379,616)*...................... 2,887,500
---------------
WARRANTS (0.0%)
MISCELLANEOUS (0.0%)
766 Chase Manhattan Corp. (Warrants due
06/30/96) (Identified Cost
$3,830)*.......................... 3,772
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION (6.8%)
$ 16,000 U.S. Treasury Bond 7.50% due
11/15/24 (Identified Cost
$15,132,500)...................... 15,295,000
---------------
SHORT-TERM INVESTMENTS (20.3%)
U.S. GOVERNMENT AGENCIES (A) (19.9%)
5,000 Federal Home Loan Bank 5.75% due
01/03/95.......................... 4,998,403
15,000 Federal National Mortgage
Association 5.94% due 01/05/95.... 14,990,133
10,000 Federal National Mortgage
Association 5.89% due 01/13/95.... 9,980,433
15,000 Federal Home Loan Mortgage Corp.
5.88% due 01/25/95................ 14,941,500
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $44,910,469)...... 44,910,469
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.4%)
$ 857 The Bank of New York 3.125% due
01/03/95 (dated 12/30/94; proceeds
$857,725; collateralized by
$898,584 U.S. Treasury Bill 6.43%
due 06/08/95 valued at $874,576)
(Identified Cost $857,427)........ $ 857,427
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $45,767,896)..... 45,767,896
---------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
---------------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED COST
$226,313,937) (B)...................... 104.2% $ 234,733,767
LIABILITIES IN EXCESS OF OTHER ASSETS... (4.2) (9,444,510)
------ ---------------
NET ASSETS.............................. 100.0% $ 225,289,257
------ ---------------
------ ---------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(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 OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS
$228,264,892; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $10,169,615
AND THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $3,700,740, RESULTING
IN NET UNREALIZED APPRECIATION OF $6,468,875.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MANAGED ASSETS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (A) (100.0%)
BANKERS' ACCEPTANCES (4.5%)
$ 18,000 Republic National Bank, N.Y. (Amortized Cost $17,845,470)............ 6.12% 02/21/95 $ 17,845,470
---------------
COMMERCIAL PAPER (29.2%)
AUTOMOTIVE FINANCE (4.8%)
19,000 Ford Motor Credit Co................................................. 6.17 01/27/95 18,916,020
---------------
BANKS - COMMERCIAL (4.1%)
16,000 National Australia Funding (Del.).................................... 6.01 01/05/95 15,989,370
---------------
FINANCE - DIVERSIFIED (17.5%)
19,500 American Express Credit Corp......................................... 5.88 01/24/95 19,427,119
15,000 Beneficial Corp...................................................... 6.12 01/19/95 14,954,400
16,400 CIT Group Holdings, Inc.............................................. 5.98 01/17/95 16,356,776
18,000 Commercial Credit Co................................................. 5.80 01/13/95 17,965,500
---------------
68,703,795
---------------
RETAIL (2.8%)
11,000 Penney (J.C.) Funding Corp........................................... 6.00 01/06/95 10,990,879
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $114,600,064)........................................ 114,600,064
---------------
U.S. GOVERNMENT AGENCIES & OBLIGATIONS (66.3%)
3,400 Federal Home Loan Banks.............................................. 5.75 01/03/95 3,398,914
18,000 Federal Home Loan Mortgage Corp...................................... 5.77 01/20/95 17,945,470
18,000 Federal Home Loan Mortgage Corp...................................... 5.78 01/27/95 17,925,250
17,000 Federal National Mortgage Assoc. .................................... 5.73 01/03/95 16,994,617
17,000 Federal National Mortgage Assoc. .................................... 5.81 01/05/95 16,989,045
30,000 Federal National Mortgage Assoc. .................................... 5.83 01/06/95 29,975,833
16,000 Federal National Mortgage Assoc. .................................... 5.93 01/09/95 15,979,022
25,000 Federal National Mortgage Assoc. .................................... 5.60 01/11/95 24,961,458
20,000 Student Loan Marketing Assoc. ....................................... 5.97 01/20/95 19,937,300
30,000 U.S. Treasury Bill................................................... 5.40 06/29/95 29,086,853
20,000 U.S. Treasury Bill................................................... 5.66 06/29/95 19,391,374
30,000 U.S. Treasury Bill................................................... 5.55 08/24/95 28,726,743
20,000 U.S. Treasury Bill................................................... 5.78 08/24/95 19,151,284
---------------
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATIONS
(IDENTIFIED COST $261,049,957)............................................................ 260,463,163
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $393,495,491) (B)............................... 100.0% 392,908,697
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS..................................... (0.0) (148,352)
------ ---------------
NET ASSETS......................................................................... 100.0% $ 392,760,345
------ ---------------
------ ---------------
<FN>
- ----------------
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST 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
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value *... $268,964,991 $413,699,312 $109,816,962 $379,927,623
Cash.................................... 2,054 -- -- --
Receivable for:
Investments sold...................... -- -- -- --
Shares of beneficial interest sold.... 164,301 33,046 4,394 76,082
Dividends............................. -- -- -- 1,747,415
Interest.............................. 226,295 6,525,916 2,398,658 940,634
Foreign withholding taxes reclaimed... -- -- -- --
Prepaid expenses and other assets....... 6,500 3,150 1,540 5,743
------------ ------------ ------------ ------------
TOTAL ASSETS.................... 269,364,141 420,261,424 112,221,554 382,697,497
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Investments purchased................. -- 5,072,500 131,500 --
Shares of beneficial interest
repurchased......................... 543,181 44,712 4,256 23,138
Investment management fee............. 108,218 176,714 47,174 212,166
Accrued expenses and other payables..... 88,289 62,586 104,382 50,441
------------ ------------ ------------ ------------
TOTAL LIABILITIES............... 739,688 5,356,512 287,312 285,745
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in-capital......................... 268,624,433 472,765,966 206,016,322 406,577,679
Accumulated undistributed net investment
income (loss)......................... 20 85,136 75,797 1,610,911
Accumulated undistributed net realized
gain (loss)........................... -- (39,503,213) (73,014,792) (2,630,010)
Net unrealized appreciation
(depreciation)........................ -- (18,442,977) (21,143,085) (23,146,828)
------------ ------------ ------------ ------------
NET ASSETS...................... $268,624,453 $414,904,912 $111,934,242 $382,411,752
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*IDENTIFIED COST........................ $268,964,991 $432,142,289 $130,960,047 $403,074,451
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................... 268,624,433 43,920,670 18,167,759 32,089,485
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSET VALUE PER SHARE (unlimited
authorized shares of $.01 par
value)................................ $1.00 $9.45 $6.16 $11.92
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
- ------------------
** Includes foreign cash of $2,863,111 and $317,609, respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND MANAGED
GROWTH GROWTH GROWTH EUROPEAN GROWTH PACIFIC GROWTH EQUITY ASSETS
------------ ----------- ----------- --------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, at value
*...................... $571,047,433 $45,626,371 $137,472,430 $ 149,221,094 $ 74,948,261 $ 234,733,767 $ 392,908,697
Cash..................... -- -- 291,838 3,163,325** 821,732** -- 26,911
Receivable for:
Investments sold....... 314,114 77,247 1,247,128 294,627 -- 3,450,504 --
Shares of beneficial
interest sold........ 49,224 28,078 184,635 43,324 53,039 1,250 229,656
Dividends.............. 1,856,997 81,547 431,909 339,527 18,961 128,618 --
Interest............... 761,871 191 -- 9,688 75,274 155,950 --
Foreign withholding
taxes reclaimed...... -- -- 64,542 212,834 448 -- --
Prepaid expenses and
other assets........... 2,411 647 897 5,973 -- 3,297 2,603
------------ ----------- ----------- --------------- -------------- ------------- -------------
TOTAL ASSETS..... 574,032,050 45,814,081 139,693,379 153,290,392 75,917,715 238,473,386 393,167,867
------------ ----------- ----------- --------------- -------------- ------------- -------------
LIABILITIES:
Payable for:
Investments
purchased............ 664,765 38,050 1,001,584 987,674 310,541 12,922,587 --
Shares of beneficial
interest
repurchased.......... 29,281 6,838 285 330 -- 95,732 122,131
Investment management
fee.................. 294,848 24,909 86,027 127,870 62,388 93,849 165,848
Accrued expenses and
other payables......... 90,833 29,023 119,444 137,079 119,447 71,961 119,543
------------ ----------- ----------- --------------- -------------- ------------- -------------
TOTAL
LIABILITIES.... 1,079,727 98,820 1,207,340 1,252,953 492,376 13,184,129 407,522
------------ ----------- ----------- --------------- -------------- ------------- -------------
NET ASSETS:
Paid-in-capital.......... 559,398,997 46,142,218 141,191,845 138,570,208 79,007,919 228,078,937 378,508,036
Accumulated undistributed
net investment income
(loss)................. 1,286,590 55,472 326,336 18,459 (152,940) 371,545 1,680,979
Accumulated undistributed
net realized gain
(loss)................. 10,728,877 (1,454,391) 21,180 5,380,860 (592,858) (11,581,055) 13,158,124
Net unrealized
appreciation
(depreciation)......... 1,537,859 971,962 (3,053,322) 8,067,912 (2,836,782) 8,419,830 (586,794)
------------ ----------- ----------- --------------- -------------- ------------- -------------
NET ASSETS....... $572,952,323 $45,715,261 $138,486,039 $ 152,037,439 $ 75,425,339 $ 225,289,257 $ 392,760,345
------------ ----------- ----------- --------------- -------------- ------------- -------------
------------ ----------- ----------- --------------- -------------- ------------- -------------
*IDENTIFIED COST......... $569,509,574 $44,654,409 $140,526,932 $ 141,184,812 $ 77,787,538 $ 226,313,937 $ 393,495,491
------------ ----------- ----------- --------------- -------------- ------------- -------------
------------ ----------- ----------- --------------- -------------- ------------- -------------
SHARES OF BENEFICIAL
INTEREST OUTSTANDING... 47,766,949 3,968,951 14,099,709 10,438,795 8,144,946 11,701,191 31,534,970
------------ ----------- ----------- --------------- -------------- ------------- -------------
------------ ----------- ----------- --------------- -------------- ------------- -------------
NET ASSET VALUE PER
SHARE (unlimited
authorized shares of
$.01 par value)........ $11.99 $11.52 $9.82 $14.56 $9.26 $19.25 $12.45
------------ ----------- ----------- --------------- -------------- ------------- -------------
------------ ----------- ----------- --------------- -------------- ------------- -------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INCOME
Interest............................ $ 9,034,116 $ 34,555,809 $ 14,176,602 $ 4,502,819
Dividends........................... -- -- -- 16,571,620*
------------- ------------- ------------- -------------
TOTAL INCOME.................... 9,034,116 34,555,809 14,176,602 21,074,439
------------- ------------- ------------- -------------
EXPENSES
Investment management fee........... 1,006,787 2,326,911 567,629 2,809,836
Transfer agent fees and expenses.... 500 500 500 500
Shareholder reports and notices..... 13,089 38,548 37,644 33,678
Professional fees................... 24,582 37,121 23,599 31,047
Trustees' fees and expenses......... 1,571 6,067 2,410 8,130
Registration fees................... 45,288 77 8,912 28
Custodian fees...................... 18,609 88,192 22,266 43,151
Other............................... 412 17,813 7,749 7,936
------------- ------------- ------------- -------------
Total Expenses before Amounts
Waived/Assumed................ 1,110,838 2,515,229 670,709 2,934,306
Less: Amounts Waived/Assumed........ -- -- -- --
------------- ------------- ------------- -------------
Total Expenses after Amounts
Waived/Assumed................ 1,110,838 2,515,229 670,709 2,934,306
------------- ------------- ------------- -------------
NET INVESTMENT INCOME....... 7,923,278 32,040,580 13,505,893 18,140,133
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments....................... -- (38,500,832) (5,517,509) (2,172,266)
Foreign exchange transactions..... -- -- -- --
------------- ------------- ------------- -------------
TOTAL GAIN (LOSS)............... -- (38,500,832) (5,517,509) (2,172,266)
------------- ------------- ------------- -------------
Net change in unrealized
appreciation (depreciation) on:
Investments....................... -- (28,248,118) (11,772,750) (59,919,164)
Translation of other assets and
liabilities denominated in
foreign currencies.............. -- -- -- --
------------- ------------- ------------- -------------
TOTAL APPRECIATION
(DEPRECIATION)................ -- (28,248,118) (11,772,750) (59,919,164)
------------- ------------- ------------- -------------
NET GAIN (LOSS)................. -- (66,748,950) (17,290,259) (62,091,430)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................ $ 7,923,278 $ (34,708,370) $ (3,784,366) $ (43,951,297)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<FN>
- ------------------
(1) For the period February 23, 1994 (commencement of operations) through
December 31, 1994.
* Net of $154,869, $74,719, $337, $148,512, $398,686, $60,811, $23,458 and
$16,349 in foreign withholding tax, respectively.
** Net of $1,321 in foreign withholding tax.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND PACIFIC
DIVIDEND CAPITAL GROWTH EUROPEAN GROWTH MANAGED
GROWTH GROWTH (1) GROWTH (1) EQUITY ASSETS
------------- ---------- --------- ------------- --------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INCOME
Interest............. $ 2,310,364 $ 37,004 $ 159,579 $ 407,601 $ 173,320** $ 1,696,253 $ 13,315,203
Dividends............ 18,497,528* 752,084* 2,301,031* 3,058,364* 473,573* 2,094,706* 2,261,784*
------------- ---------- --------- ------------- --------- ------------- -------------
TOTAL INCOME..... 20,807,892 789,088 2,460,610 3,465,965 646,893 3,790,959 15,576,987
------------- ---------- --------- ------------- --------- ------------- -------------
EXPENSES
Investment management
fee.................... 3,388,371 308,143 528,066 1,299,782 413,341 1,077,511 1,739,941
Transfer agent fees
and expenses........... 500 500 -- 500 -- 500 500
Shareholder reports
and notices............ 45,779 5,580 1,236 4,327 759 21,496 32,673
Professional fees.... 21,563 23,412 25,630 31,544 19,706 23,415 16,442
Trustees' fees and
expenses............... 5,934 2,029 487 5,121 302 3,883 5,979
Registration fees.... 37,304 13 48,100 22,349 27,179 18,729 31,711
Custodian fees....... 30,940 22,947 75,589 144,093 117,652 71,788 56,554
Other................ 5,191 611 657 453 713 2,309 4,051
------------- ---------- --------- ------------- --------- ------------- -------------
Total Expenses
before Amounts
Waived/Assumed.. 3,535,582 363,235 679,765 1,508,169 579,652 1,219,631 1,887,851
Less: Amounts
Waived/Assumed..... -- -- (66,255) -- (164,283) -- --
------------- ---------- --------- ------------- --------- ------------- -------------
Total Expenses
after Amounts
Waived/Assumed... 3,535,582 363,235 613,510 1,508,169 415,369 1,219,631 1,887,851
------------- ---------- --------- ------------- --------- ------------- -------------
NET
INVESTMENT
INCOME..... 17,272,310 425,853 1,847,100 1,957,796 231,524 2,571,328 13,689,136
------------- ---------- --------- ------------- --------- ------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS):
Net realized gain
(loss) on:
Investments........ 12,620,382 (927,479) 21,180 6,929,184 (695,421) (10,255,042) 13,979,461
Foreign exchange
transactions..... -- -- (4,747) (1,652,814) (45,458) -- --
------------- ---------- --------- ------------- --------- ------------- -------------
TOTAL GAIN
(LOSS)......... 12,620,382 (927,479) 16,433 5,276,370 (740,879) (10,255,042) 13,979,461
------------- ---------- --------- ------------- --------- ------------- -------------
Net change in
unrealized
appreciation
(depreciation) on:
Investments........ (48,245,643) (158,687) (3,054,502) 1,143,365 (2,839,277) (4,038,554) (14,418,071)
Translation of
other assets and
liabilities
denominated in
foreign
currencies....... -- -- 1,180 43,899 2,495 -- --
------------- ---------- --------- ------------- --------- ------------- -------------
TOTAL
APPRECIATION
(DEPRECIATION)... (48,245,643) (158,687) (3,053,322) 1,187,264 (2,836,782) (4,038,554) (14,418,071)
------------- ---------- --------- ------------- --------- ------------- -------------
NET GAIN
(LOSS)......... (35,625,261) (1,086,166) (3,036,889) 6,463,634 (3,577,661) (14,293,596) (438,610)
------------- ---------- --------- ------------- --------- ------------- -------------
NET INCREASE
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS... $ (18,352,951) $ (660,313) $(1,189,789) $ 8,421,430 $(3,346,137) $ (11,722,268) $ 13,250,526
------------- ---------- --------- ------------- --------- ------------- -------------
------------- ---------- --------- ------------- --------- ------------- -------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
<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............... $ 7,923,278 $ 2,906,088 $ 32,040,580 $ 20,679,099
Net realized gain (loss)............ -- -- (38,500,832) 8,180,477
Net change in unrealized
appreciation (depreciation)....... -- -- (28,248,118) 4,200,907
------------- ------------ ------------- ------------
Net increase (decrease)......... 7,923,278 2,906,088 (34,708,370) 33,060,483
------------- ------------ ------------- ------------
Dividends and distributions to
shareholders from:
Net investment income............... (7,923,343) (2,906,087) (31,956,022) (20,733,963)
Net realized gain................... -- -- (8,412,812) --
------------- ------------ ------------- ------------
Total........................... (7,923,343) (2,906,087) (40,368,834) (20,733,963)
------------- ------------ ------------- ------------
Transactions in shares of beneficial
interest:
Net proceeds from sales............. 243,270,066 110,933,469 62,213,515 305,118,024
Reinvestment of dividends and
distributions..................... 7,923,343 2,906,086 40,368,834 20,733,884
Cost of shares repurchased.......... (112,493,978) (80,065,561) (100,246,764) (13,899,740)
------------- ------------ ------------- ------------
Net increase (decrease)......... 138,699,431 33,773,994 2,335,585 311,952,168
------------- ------------ ------------- ------------
Total increase (decrease)....... 138,699,366 33,773,995 (72,741,619) 324,278,688
NET ASSETS:
Beginning of period................... 129,925,087 96,151,092 487,646,531 163,367,843
------------- ------------ ------------- ------------
END OF PERIOD......................... $ 268,624,453 $129,925,087 $ 414,904,912 $487,646,531
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
Undistributed Net Investment Income
(Note 4).............................. $ 20 $ 85 $ 85,136 $ 578
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
SHARES ISSUED AND REPURCHASED:
Sold.................................. 243,270,066 110,933,469 5,844,176 27,855,790
Issued in reinvestment of dividends
and distributions................... 7,923,343 2,906,086 4,051,038 1,881,374
Repurchased........................... (112,493,978) (80,065,561) (10,177,416) (1,260,583)
------------- ------------ ------------- ------------
Net increase (decrease)............... 138,699,431 33,773,994 (282,202) 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............. $ 13,505,893 $ 7,352,743 $ 18,140,133 $ 12,658,578 $ 17,272,310 $ 9,870,586
Net realized gain
(loss)............. (5,517,509) (4,735,637) (2,172,266) 2,261,234 12,620,382 1,384,492
Net change in
unrealized
appreciation
(depreciation)..... (11,772,750) 9,877,901 (59,919,164) 19,355,022 (48,245,643) 30,925,020
------------- ------------ ------------- ------------ ------------ ------------
Net increase
(decrease)..... (3,784,366) 12,495,007 (43,951,297) 34,274,834 (18,352,951) 42,180,098
------------- ------------ ------------- ------------ ------------ ------------
Dividends and
distributions to
shareholders from:
Net investment
income............. (13,464,211) (7,316,733) (17,878,751) (11,879,161) (16,780,838) (9,428,340)
Net realized gain.... -- -- (2,681,110) (454,570) -- --
------------- ------------ ------------- ------------ ------------ ------------
Total............ (13,464,211) (7,316,733) (20,559,861) (12,333,731) (16,780,838) (9,428,340)
------------- ------------ ------------- ------------ ------------ ------------
Transactions in shares
of beneficial
interest:
Net proceeds from
sales.............. 45,115,268 43,270,397 48,664,778 315,722,662 142,834,351 260,254,121
Reinvestment of
dividends and
distributions...... 13,464,211 7,316,732 20,559,861 12,333,731 16,780,838 9,428,340
Cost of shares
repurchased........ (19,597,061) (5,607,128) (113,235,763) (12,811,170) (34,674,217) (11,840,572)
------------- ------------ ------------- ------------ ------------ ------------
Net increase
(decrease)..... 38,982,418 44,980,001 (44,011,124) 315,245,223 124,940,972 257,841,889
------------- ------------ ------------- ------------ ------------ ------------
Total increase
(decrease)..... 21,733,841 50,158,275 (108,522,282) 337,186,326 89,807,183 290,593,647
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.......... $ 111,934,242 $ 90,200,401 $ 382,411,752 $490,934,034 $572,952,323 $483,145,140
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
Undistributed Net
Investment Income (Note
4)..................... $ 75,797 $ 34,115 $ 1,610,911 $ 1,349,529 $ 1,286,590 $ 795,118
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
SHARES ISSUED AND
REPURCHASED:
Sold................... 6,446,698 6,223,673 3,765,654 23,293,456 11,460,639 21,274,912
Issued in reinvestment
of dividends and
distributions........ 2,019,283 1,053,326 1,653,504 902,622 1,370,617 767,569
Repurchased............ (2,991,013) (809,003) (9,048,385) (934,385) (2,857,510) (979,408)
------------- ------------ ------------- ------------ ------------ ------------
Net increase
(decrease)........... 5,474,968 6,467,996 (3,629,227) 23,261,693 9,973,746 21,063,073
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND
CAPITAL GROWTH GROWTH (1)
---------------------- -----------
1994 1993 1994
----------- --------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............... $ 425,853 3$63,745 $ 1,847,100
Net realized gain (loss)............ (927,479 ) (240,483) 16,433
Net change in unrealized
appreciation (depreciation)....... (158,687 ) (3,491,305) (3,053,322)
----------- --------- -----------
Net increase (decrease)......... (660,313 ) (3,368,043) (1,189,789)
----------- --------- -----------
Dividends and distributions to
shareholders from:
Net investment income............... (431,431 ) (338,174) (1,516,017)
Net realized gain................... (137,199 ) -- --
----------- --------- -----------
Total........................... (568,630 ) (338,174) (1,516,017)
----------- --------- -----------
Transactions in shares of beneficial
interest:
Net proceeds from sales............. 8,659,150 24,319,197 142,414,894
Reinvestment of dividends and
distributions..................... 568,630 338,174 1,516,017
Cost of shares repurchased.......... (12,592,414) (15,747,254) (2,739,066)
----------- --------- -----------
Net increase (decrease)......... (3,364,634 ) 8,910,117 141,191,845
----------- --------- -----------
Total increase (decrease)....... (4,593,577 ) 5,203,900 138,486,039
NET ASSETS:
Beginning of period................... 50,308,838 45,104,938 --
----------- --------- -----------
END OF PERIOD......................... $45,715,261 50,$308,838 $138,486,039
----------- --------- -----------
----------- --------- -----------
Undistributed Net Investment Income
(Note 4).............................. $ 55,472 $61,052 $ 326,336
----------- --------- -----------
----------- --------- -----------
SHARES ISSUED AND REPURCHASED:
Sold.................................. 745,503 2,077,229 14,227,418
Issued in reinvestment of dividends
and distributions................... 49,535 29,150 152,929
Repurchased........................... (1,085,521 ) (1,374,613) (280,638)
----------- --------- -----------
Net increase (decrease)............... (290,483 ) 731,766 14,099,709
----------- --------- -----------
----------- --------- -----------
<FN>
- ------------------
(1) For the period February 23, 1994 (commencement of operations) through
December 31, 1994.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACIFIC
EUROPEAN GROWTH GROWTH (1) EQUITY MANAGED ASSETS
--------------------------- ----------- --------------------------- ---------------------------
1994 1993 1994 1994 1993 1994 1993
------------- ------------ ----------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment
income............. $ 1,957,796 $ 282,228 $ 231,524 $ 2,571,328 $ 803,918 $ 13,689,136 $ 6,588,590
Net realized gain
(loss)............. 5,276,370 3,620,336 (740,879) (10,255,042) 15,242,235 13,979,461 8,034,397
Net change in
unrealized
appreciation
(depreciation)..... 1,187,264 6,853,206 (2,836,782) (4,038,554) 3,236,728 (14,418,071) 5,370,815
------------- ------------ ----------- ------------- ------------ ------------- ------------
Net increase
(decrease)..... 8,421,430 10,755,770 (3,346,137) (11,722,268) 19,282,881 13,250,526 19,993,802
------------- ------------ ----------- ------------- ------------ ------------- ------------
Dividends and
distributions to
shareholders from:
Net investment
income............. (1,332,400) (258,172) -- (2,393,925) (760,806) (12,720,041) (6,339,592)
Net realized gain.... (4,011,038) (199,841) (236,443) (16,442,181) (6,092,158) (6,891,484) (7,347,526)
------------- ------------ ----------- ------------- ------------ ------------- ------------
Total............ (5,343,438) (458,013) (236,443) (18,836,106) (6,852,964) (19,611,525) (13,687,118)
------------- ------------ ----------- ------------- ------------ ------------- ------------
Transactions in shares
of beneficial
interest:
Net proceeds from
sales.............. 79,498,127 59,000,547 81,416,561 84,340,284 96,261,692 110,230,754 137,119,451
Reinvestment of
dividends and
distributions...... 5,343,438 458,013 236,443 18,836,106 6,852,964 19,611,525 13,687,118
Cost of shares
repurchased........ (14,934,507) (1,390,412) (2,645,085) (30,156,623) (10,243,552) (18,223,284) (6,351,926)
------------- ------------ ----------- ------------- ------------ ------------- ------------
Net increase
(decrease)..... 69,907,058 58,068,148 79,007,919 73,019,767 92,871,104 111,618,995 144,454,643
------------- ------------ ----------- ------------- ------------ ------------- ------------
Total increase
(decrease)..... 72,985,050 68,365,905 75,425,339 42,461,393 105,301,021 105,257,996 150,761,327
NET ASSETS:
Beginning of period.... 79,052,389 10,686,484 -- 182,827,864 77,526,843 287,502,349 136,741,022
------------- ------------ ----------- ------------- ------------ ------------- ------------
END OF PERIOD.......... $ 152,037,439 $ 79,052,389 $75,425,339 $ 225,289,257 $182,827,864 $ 392,760,345 $287,502,349
------------- ------------ ----------- ------------- ------------ ------------- ------------
------------- ------------ ----------- ------------- ------------ ------------- ------------
Undistributed Net
Investment Income (Note
4)..................... $ 18,459 $ 867,172 $ (152,940) $ 371,545 $ 194,225 $ 1,680,979 $ 711,864
------------- ------------ ----------- ------------- ------------ ------------- ------------
------------- ------------ ----------- ------------- ------------ ------------- ------------
SHARES ISSUED AND
REPURCHASED:
Sold................... 5,461,296 4,664,827 8,401,700 3,984,962 4,485,338 8,741,963 10,942,015
Issued in reinvestment
of dividends and
distributions........ 385,416 38,773 25,025 965,337 336,539 1,575,130 1,102,080
Repurchased............ (1,042,808) (118,865) (281,779) (1,504,112) (483,237) (1,450,674) (506,227)
------------- ------------ ----------- ------------- ------------ ------------- ------------
Net increase
(decrease)........... 4,803,904 4,584,735 8,144,946 3,446,187 4,338,640 8,866,419 11,537,868
------------- ------------ ----------- ------------- ------------ ------------- ------------
------------- ------------ ----------- ------------- ------------ ------------- ------------
</TABLE>
<PAGE>
Dean Witter Variable Investment Series
Notes to Financial Statements
- --------------------------------------------------------------------------------
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
PORTFOLIO OPERATIONS
- ------------------------------- ---------------------
<S> <C>
Money Market................... March 9, 1984
Quality Income Plus............ March 1, 1987
High Yield..................... March 9, 1984
Utilities...................... March 1, 1990
Dividend Growth................ March 1, 1990
Capital Growth................. March 1, 1991
<CAPTION>
COMMENCEMENT OF
PORTFOLIO OPERATIONS
- ------------------------------- ---------------------
<S> <C>
Global Dividend Growth......... February 23, 1994
European Growth................ March 1, 1991
Pacific Growth................. February 23, 1994
Equity......................... March 9, 1984
Managed Assets................. March 1, 1987
</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 exchanges 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 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; (4) 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; (5) 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
security quality, maturity and coupon as the evaluation model parameters,
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 (6)
short-term debt securities having a maturity date of more than sixty days at
the time of purchase are valued on a mark-to-market basis until sixty days
prior to maturity and thereafter at amortized cost based on their value on
the 61st day. Short-term securities having a maturity date of sixty days or
less at the time of purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS--Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined by the identified cost
method. Dividend income is recorded on the ex-dividend date, except for
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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. The Money Market Portfolio
amortizes premiums and discounts on securities owned; gains and losses
realized upon the sale of securities are based on amortized cost. Discounts
on securities purchased for all other Portfolios are amortized over the life
of the respective securities. All other Portfolios do not amortize premiums
on securities purchased.
C. ACCOUNTING FOR OPTIONS--(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 a liability which 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 are increased by the premium originally
received. If a put option which the 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; and (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.
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 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
rates prevailing on the respective dates of such transactions. The resultant
exchange gains and losses are included in the Statement of Operations as
realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange
gains/losses included in realized and unrealized gain/loss are included in
or are a reduction of ordinary income for federal 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 CONTRACTS--Some of the Portfolios may enter into
forward foreign currency contracts which are valued daily at the appropriate
exchange rates. The resultant unrealized exchange gains and losses are
included in the Statement of Operations as unrealized foreign currency gain
or loss and in the Statement of Assets and Liabilities as receivables and
payables, respectively, on open forward foreign currency contracts. The
Portfolios record realized gains or losses on delivery of the currencies or
at the time the forward contracts are extinguished (compensated) by entering
into closing transactions prior to delivery.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
F. 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.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
H. EXPENSES--Direct expenses are charged to the respective Portfolio and
general Fund expenses are allocated on the basis of relative net assets.
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS--Pursuant to an Investment
Management Agreement with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, accrued daily
and payable monthly, by applying the following annual rates to each Portfolio's
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 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 the Dividend Growth and Utilities
Portfolios 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
the European Growth and the Pacific Growth Portfolios 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.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Investment Manager assumed all expenses (except for brokerage fees) and
waived the compensation provided for in the Agreement until Global Dividend
Growth and Pacific Growth each had $50 million of net assets, which occurred on
May 12, 1994 and August 2, 1994, respectively.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--Purchases and
sales/maturities of portfolio securities, excluding short-term investments
(except for the Money Market Portfolio), for the year ended December 31, 1994
were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
---------------------------------- --------------------------------------
PURCHASES SALES/MATURITIES PURCHASES SALES/MATURITIES
---------------- ---------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Money Market.......................... -- -- $ 1,994,232,257 $ 1,864,172,886
Quality Income Plus................... $ 988,864,772 $ 910,196,503 202,272,125 303,287,630
High Yield............................ -- -- 126,250,252 98,470,971
Utilities............................. -- -- 64,148,468 91,278,714
Dividend Growth....................... -- -- 237,167,177 108,337,920
Capital Growth........................ -- -- 17,430,795 21,097,015
Global Dividend Growth................ -- -- 157,037,405 16,531,653
European Growth....................... -- -- 139,717,094 70,472,802
Pacific Growth........................ -- -- 87,273,443 10,398,399
Equity................................ 25,631,764 15,829,536 557,753,826 532,382,183
Managed Assets........................ 53,304,861 72,126,824 59,315,880 212,229,720
</TABLE>
For the year ended December 31, 1994, the following respective Portfolios
incurred brokerage commissions with Dean Witter Reynolds Inc., an affiliate of
the Investment Manager, 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............................ $ 27,250 $ 192,545 $ 32,574 $ 55,460 $ 200,291 $ 38,541
--------- ----------- --------- --------- ----------- ---------
--------- ----------- --------- --------- ----------- ---------
</TABLE>
For the period ended December 31, 1994, the Global Dividend Growth, European
Growth and Pacific Growth Portfolios incurred brokerage commissions of $69,555,
$16,661 and $92,667, respectively, with affiliates of Morgan Grenfell for
portfolio transactions executed on behalf of the Portfolio.
Included in the payable for investments purchased and receivable for
investments sold for unsettled trades with Dean Witter Reynolds Inc. at December
31, 1994 are as follows:
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND
GROWTH GROWTH GROWTH EQUITY
----------- --------- ----------- -----------
<S> <C> <C> <C> <C>
Payable for investments purchased.............................. $ 664,765 $ 38,050 $ 538,375 $ 875,235
----------- --------- ----------- -----------
----------- --------- ----------- -----------
Receivable for investments sold................................ $ 314,115 $ 77,247 $ 179,794 $ 703,977
----------- --------- ----------- -----------
----------- --------- ----------- -----------
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Fund who will have
served as independent Trustees for at least five years at the time of
retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension costs for
the period ended December 31, 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 were as follows:
<TABLE>
<CAPTION>
QUALITY
MONEY INCOME HIGH DIVIDEND CAPITAL
MARKET PLUS YIELD UTILITIES GROWTH GROWTH
--------- --------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Pension Cost............................. $ 220 $ 508 $ 124 $ 470 $ 601 $ 204
--------- --------- --------- --------- ----------- -----
--------- --------- --------- --------- ----------- -----
Aggregate Pension Liability........................ $ 10,704 $ 6,346 $ 3,072 $ 3,919 $ 5,969 $ 192
--------- --------- --------- --------- ----------- -----
--------- --------- --------- --------- ----------- -----
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND EUROPEAN PACIFIC MANAGED
GROWTH GROWTH GROWTH EQUITY ASSETS
----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
Aggregate Pension Cost....................................... $ 90 $ 379 $ 53 $ 235 $ 380
--- ----- --- --------- -----------
--- ----- --- --------- -----------
Aggregate Pension Liability.................................. $ 70 $ 347 $ 41 $ 4,427 $ 7,093
--- ----- --- --------- -----------
--- ----- --- --------- -----------
</TABLE>
4. FEDERAL INCOME TAX STATUS--At December 31, 1994, 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>
(AMOUNTS IN THOUSANDS)
AVAILABLE THROUGH --------------------------------------------------------------------------------------
DECEMBER 31, 1996 1997 1998 1999 2000 2001 2002 TOTAL
- --------------------------------------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Quality Income Plus.................... -- -- -- -- -- -- $ 32,802 $ 32,802
High Yield............................. $ 7,297 $ 10,694 $ 34,291 $ 7,336 $ 3,057 $ 4,736 3,256 70,667
Utilities.............................. -- -- -- -- -- -- 2,371 2,371
Capital Growth......................... -- -- -- -- -- -- 1,047 1,047
Equity................................. -- -- -- -- -- -- 6,496 6,496
</TABLE>
Capital and currency 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/currency losses for fiscal 1994: Quality Income Plus
- - $4,693,000; High Yield - $2,213,000; Utilities - $204,000; Global Dividend
Growth - $101,000; Pacific Growth - $557,000; Equity - $3,375,000; Managed
Assets - $745,000.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 1994, the primary reason(s) for significant
temporary/permanent book/tax differences were as follows:
<TABLE>
<CAPTION>
TEMPORARY DIFFERENCES PERMANENT DIFFERENCES
------------------------------- -------------------------------
POST-OCTOBER LOSS DEFERRALS NET OPERATING FOREIGN CURRENCY
PORTFOLIO CAPITAL LOSSES FROM WASH SALES LOSS GAINS/LOSSES
- -------------------------------------------------- -------------- --------------- ------------- ----------------
<S> <C> <C> <C> <C>
Quality Income Plus............................... - -
High Yield........................................ - -
Utilities......................................... - -
Dividend Growth................................... -
Capital Growth.................................... -
Global Dividend Growth............................ - - -
European Growth................................... - -
Pacific Growth.................................... - - - -
Equity............................................ - -
Managed Assets.................................... -
</TABLE>
To reflect reclassifications arising from permanent book/tax differences for
the year ended December 31, 1994, the following accounts were
charged/(credited):
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED
NET INVESTMENT NET REALIZED
INCOME/LOSS GAIN/LOSS
-------------- --------------
<S> <C> <C>
Global Dividend Growth...................................................... $ 4,747 $ (4,747)
European Growth............................................................. 1,474,109 (1,474,109)
Pacific Growth.............................................................. 384,464 (384,464)
</TABLE>
5. PURPOSE OF AND RISK RELATING TO CERTAIN FINANCIAL INSTRUMENTS--The Global
Dividend Growth, European Growth and Pacific Growth Portfolios may enter into
forward foreign currency contracts ("forward contracts") to facilitate
settlement of foreign currency denominated portfolio transactions or to manage
their foreign currency exposure associated with foreign currency denominated
securities. These Portfolios may also purchase put options on foreign currencies
in which the Portfolios' securities are denominated to protect against a decline
in value of such securities due to currency devaluations.
At December 31, 1994, there were no outstanding forward contracts other than
those used to facilitate settlement of outstanding foreign currency denominated
portfolio transactions. Additionally, at December 31, 1994, the European Growth
and Pacific Growth Portfolios have outstanding over-the-counter purchased put
options on foreign currencies.
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 and
over-the-counter purchased put options 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 NET NET REALIZED TOTAL FROM TOTAL
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO DISTRIBUTIONS TO DIVIDENDS AND
DEC. 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
----------- --------- ---------- -------------- ---------- ------------ ---------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET
1985 $ 1.00 $ 0.076 $-- $ 0.076 $(0.076) $-- $ (0.076)
1986 1.00 0.062 -- 0.062 (0.062) -- (0.062)
1987 1.00 0.061 -- 0.061 (0.061) -- (0.061)
1988 1.00 0.070 -- 0.070 (0.070) -- (0.070)
1989 1.00 0.086 -- 0.086 (0.086) -- (0.086)
1990 1.00 0.076 -- 0.076 (0.076) -- (0.076)
1991 1.00 0.056 -- 0.056 (0.056) -- (0.056)
1992 1.00 0.034 -- 0.034 (0.034) -- (0.034)
1993 1.00 0.027 -- 0.027 (0.027) -- (0.027)
1994 1.00 0.037 -- 0.037 (0.037) -- (0.037)
QUALITY INCOME PLUS
1987* 10.00 0.64 (0.39) 0.25 (0.64) -- (0.64)
1988 9.61 0.85 (0.16) 0.69 (0.85) -- (0.85)
1989 9.45 0.88 0.28 1.16 (0.88) -- (0.88)
1990 9.73 0.86 (0.24) 0.62 (0.86) -- (0.86)
1991 9.49 0.85 0.85 1.70 (0.85) -- (0.85)
1992 10.34 0.77 0.05 0.82 (0.77) -- (0.77)
1993 10.39 0.69 0.64 1.33 (0.69) -- (0.69)
1994 11.03 0.69 (1.40) (0.71) (0.69) (0.18) (0.87)
HIGH YIELD
1985 10.23 1.17 1.50 2.67 (1.17) (0.01) (1.18)
1986 11.72 1.09 0.90 1.99 (1.09) (0.56) (1.65)
1987 12.06 0.91 (1.15) (0.24) (0.91) (0.94) (1.85)
1988 9.97 1.14 (0.05) 1.09 (1.14) -- (1.14)
1989 9.92 1.30 (2.40) (1.10) (1.30) -- (1.30)
1990 7.52 1.13 (2.91) (1.78) (1.13) (0.06)+ (1.19)
1991 4.55 0.70 1.81 2.51 (0.70) (0.11)+ (0.81)
1992 6.25 0.96 0.18 1.14 (0.96) -- (0.96)
1993 6.43 0.81 0.68 1.49 (0.81) -- (0.81)
1994 7.11 0.79 (0.95) (0.16) (0.79) -- (0.79)
UTILITIES
1990** 10.00 0.47 (0.04) 0.43 (0.41) -- (0.41)
1991 10.02 0.54 1.45 1.99 (0.54) -- (0.54)
1992 11.47 0.51 0.88 1.39 (0.52) -- (0.52)
1993 12.34 0.49 1.43 1.92 (0.50) (0.02) (0.52)
1994 13.74 0.53 (1.75) (1.22) (0.52) (0.08) (0.60)
<FN>
- ------------
Commencement of operations:
* March 1, 1987.
** March 1, 1990.
+ Distribution from capital.
(1) Not annualized.
(2) Annualized.
(3) If the Investment Manager had not assumed all expenses and waived the
management fee for the period March 1, 1987 through August 26, 1987, the
ratio of expenses to average net assets would have been 0.74%.
(4) If the Investment Manager had not assumed all expenses and waived the
management fee for the period March 1, 1990 through August 31, 1990, the
ratio of expenses to average net assets would have been 0.75%.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
NET ASSET -------------------------
YEAR VALUE TOTAL NET ASSETS NET PORTFOLIO
ENDED END INVESTMENT AT END OF INVESTMENT TURNOVER
DEC. 31 OF PERIOD RETURN PERIOD (000'S) EXPENSES INCOME RATE
- ------- --------- ----------- -------------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET
1985 $ 1.00 7.85% $ 16,386 0.74% 7.57% N/A
1986 1.00 6.39 42,194 0.69 6.03 N/A
1987 1.00 6.26 69,467 0.65 6.26 N/A
1988 1.00 7.23 77,304 0.62 7.04 N/A
1989 1.00 9.05 76,701 0.58 8.67 N/A
1990 1.00 7.89 118,058 0.57 7.60 N/A
1991 1.00 5.75 104,277 0.57 5.62 N/A
1992 1.00 3.43 96,151 0.59 3.38 N/A
1993 1.00 2.75 129,925 0.57 2.71 N/A
1994 1.00 3.81 268,624 0.55 3.93 N/A
QUALITY INCOME PLUS
1987* 9.61 2.62(1) 24,094 0.35(2)(3) 8.33(2) 265%(1)
1988 9.45 7.32 28,037 0.73 8.87 277
1989 9.73 12.78 48,784 0.70 9.09 242
1990 9.49 6.84 57,407 0.66 9.09 166
1991 10.34 18.75 81,918 0.60 8.39 105
1992 10.39 8.26 163,368 0.58 7.41 148
1993 11.03 12.99 487,647 0.56 6.17 219
1994 9.45 (6.63) 414,905 0.54 6.88 254
HIGH YIELD
1985 11.72 27.42 101,253 0.64 10.50 237
1986 12.06 18.13 204,754 0.56 9.10 164
1987 9.97 (3.02) 191,631 0.53 7.66 287
1988 9.92 10.83 192,290 0.56 11.06 140
1989 7.52 (12.44) 96,359 0.55 13.94 54
1990 4.55 (25.54) 27,078 0.69 17.98 42
1991 6.25 58.14 34,603 1.01 12.29 300
1992 6.43 18.35 40,042 0.74 14.05 204
1993 7.11 24.08 90,200 0.60 11.80 177
1994 6.16 (2.47) 111,934 0.59 11.71 105
UTILITIES
1990** 10.02 4.52(1) 37,597 0.40(2)(4) 6.38(2) 46(1)
1991 11.47 20.56 68,449 0.80 5.23 25
1992 12.34 12.64 153,748 0.73 4.63 26
1993 13.74 15.69 490,934 0.71 3.75 11
1994 11.92 (9.02) 382,412 0.68 4.21 15
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET
YEAR VALUE NET NET REALIZED TOTAL FROM TOTAL
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO DISTRIBUTIONS TO DIVIDENDS AND
DEC. 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
----------- --------- ---------- -------------- ---------- ------------ ---------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
DIVIDEND GROWTH
1990** $ 10.00 $ 0.33 $ (1.10) $ (0.77) $ (0.30) $-- $ (0.30)
1991 8.93 0.36 2.08 2.44 (0.37) -- (0.37)
1992 11.00 0.37 0.51 0.88 (0.37) -- (0.37)
1993 11.51 0.36 1.27 1.63 (0.36) -- (0.36)
1994 12.78 0.38 (0.80) (0.42) (0.37) -- (0.37)
CAPITAL GROWTH
1991*** 10.00 0.15 2.67 2.82 (0.13) -- (0.13)
1992 12.69 0.07 0.13 0.20 (0.08) (0.02) (0.10)
1993 12.79 0.08 (0.98) (0.90) (0.08) -- (0.08)
1994 11.81 0.10 (0.26) (0.16) (0.10) (0.03) (0.13)
GLOBAL DIVIDEND GROWTH
1994**** 10.00 0.23 (0.20) 0.03 (0.21) -- (0.21)
EUROPEAN GROWTH
1991*** 10.00 0.25 (0.13) 0.12 (0.23) -- (0.23)
1992 9.89 0.08 0.32 0.40 (0.10) (0.01) (0.11)
1993 10.18 0.12 3.98 4.10 (0.12) (0.13) (0.25)
1994 14.03 0.17 0.96 1.13 (0.16) (0.44) (0.60)
PACIFIC GROWTH
1994**** 10.00 0.07 (0.74) (0.67) -- (0.07) (0.07)
EQUITY
1985 10.79 0.43 2.01 2.44 (0.46) (0.03) (0.49)
1986 12.74 0.39 1.74 2.13 (0.39) (0.07) (0.46)
1987 14.41 0.30 (0.94) (0.64) (0.33) (0.95) (1.28)
1988 12.49 0.39 0.83 1.22 (0.35) -- (0.35)
1989 13.36 0.71 1.77 2.48 (0.70) -- (0.70)
1990 15.14 0.48 (1.03) (0.55) (0.49) -- (0.49)
1991 14.10 0.20 8.05 8.25 (0.21) -- (0.21)
1992 22.14 0.23 (0.47) (0.24) (0.24) (1.86) (2.10)
1993 19.80 0.15 3.63 3.78 (0.15) (1.28) (1.43)
1994 22.15 0.23 (1.31) (1.08) (0.22) (1.60) (1.82)
MANAGED ASSETS
1987* 10.00 0.48 (0.35) 0.13 (0.48) -- (0.48)
1988 9.65 0.70 0.51 1.21 (0.64) -- (0.64)
1989 10.22 0.84 0.20 1.04 (0.79) (0.06) (0.85)
1990 10.41 0.61 (0.46) 0.15 (0.67) (0.08) (0.75)
1991 9.81 0.47 2.24 2.71 (0.50) -- (0.50)
1992 12.02 0.44 0.41 0.85 (0.45) (0.13) (0.58)
1993 12.29 0.38 0.86 1.24 (0.38) (0.47) (0.85)
1994 12.68 0.48 0.01 0.49 (0.46) (0.26) (0.72)
<FN>
- ------------
Commencement of operations:
** March 1, 1990.
*** March 1, 1991.
**** February 23, 1994.
(1) Not annualized.
(2) Annualized.
(3) If the Investment Manager had not assumed all expenses and waived the
management fee for the period March 1, 1987 through August 26, 1987, the
ratio of expenses to average net assets would have been 0.74%.
(4) If the Investment Manager had not assumed all expenses and waived the
management fee for the period March 1, 1990 through June 26, 1990, the
ratio of expenses to average net assets would have been 0.74%.
(5) 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% for
Capital Growth and 4.12% for European Growth.
(6) If the Investment Manager had not assumed all expenses and waived the
management fee for the period February 23, 1994 through May 12, 1994 for
Global Dividend Growth and February 23, 1994 through August 2, 1994 for
Pacific Growth, the ratio of expenses to average net assets would have
been 0.97% for Global Dividend Growth and 1.40% for Pacific Growth.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
NET ASSET -----------------------
YEAR VALUE TOTAL NET ASSETS NET PORTFOLIO
ENDED END INVESTMENT AT END OF INVESTMENT TURNOVER
DEC. 31 OF PERIOD RETURN PERIOD (000'S) EXPENSES INCOME RATE
- ------- --------- ----------- -------------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
DIVIDEND GROWTH
1990** $ 8.93 (7.81)%(1) $ 57,282 0.54%(2)(4) 4.50%(2) 19%(1)
1991 11.00 27.76 98,023 0.73 3.61 6
1992 11.51 8.16 192,551 0.69 3.42 4
1993 12.78 14.34 483,145 0.68 3.01 6
1994 11.99 (3.27) 572,952 0.64 3.13 20
CAPITAL GROWTH
1991*** 12.69 28.41(1) 18,400 --(2)(5) 1.82(2) 32(1)
1992 12.79 1.64 45,105 0.86 0.62 22
1993 11.81 (6.99) 50,309 0.74 0.78 36
1994 11.52 (1.28) 45,715 0.77 0.90 37
GLOBAL DIVIDEND GROWTH
1994**** 9.82 0.27(1) 138,486 0.87(2)(6) 2.62(2) 20(1)
EUROPEAN GROWTH
1991*** 9.89 1.34(1) 3,653 --(2)(5) 3.18(2) 77(1)
1992 10.18 3.99 10,686 1.73 0.74 97
1993 14.03 40.88 79,052 1.28 0.97 77
1994 14.56 8.36 152,037 1.16 1.51 58
PACIFIC GROWTH
1994**** 9.26 (6.73)(1) 75,425 1.00(2)(6) 0.56(2) 22(1)
EQUITY
1985 12.74 23.66 30,045 0.73 3.99 73
1986 14.41 16.85 43,266 0.63 2.72 89
1987 12.49 (6.23) 52,502 0.59 2.02 63
1988 13.36 9.84 39,857 0.65 2.77 162
1989 15.14 18.83 58,316 0.60 4.85 81
1990 14.10 (3.62) 41,234 0.62 3.38 130
1991 22.14 59.05 63,524 0.64 1.09 214
1992 19.80 0.05 77,527 0.62 1.22 286
1993 22.15 19.72 182,828 0.58 0.69 265
1994 19.25 (4.91) 225,289 0.57 1.19 299
MANAGED ASSETS
1987* 9.65 1.23(1) 27,016 0.38(2)(3) 6.73(2) 172(1)
1988 10.22 12.79 61,947 0.66 7.29 310
1989 10.41 10.67 88,712 0.57 8.38 282
1990 9.81 1.56 68,447 0.58 6.10 163
1991 12.02 28.26 87,779 0.60 4.34 86
1992 12.29 7.24 136,741 0.58 3.74 87
1993 12.68 10.38 287,502 0.57 3.11 57
1994 12.45 3.94 392,760 0.54 3.93 125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter Variable Investment Series
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Money Market Portfolio, the
Quality Income Plus Portfolio, the High Yield Portfolio, the Utilities
Portfolio, the Dividend Growth Portfolio, the Capital Growth Portfolio, the
Global Dividend Growth Portfolio, the European Growth Portfolio, the Pacific
Growth Portfolio, the Equity Portfolio, and the Managed Assets Portfolio
(constituting Dean Witter Variable Investment Series, hereafter referred to as
the "Fund") at December 31, 1994, the results of each of their operations for
the year or indicated period then ended, the changes in each of their net assets
and the financial highlights for each of the periods indicated, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at December 31, 1994 by
correspondence with the custodians and brokers, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 13, 1995
1994 FEDERAL INCOME TAX NOTICE (UNAUDITED)
During the year ended December 31, 1994, the Fund paid to
shareholders long-term capital gains per share as follows:
<TABLE>
<CAPTION>
CAPITAL EUROPEAN MANAGED QUALITY
GROWTH EQUITY GROWTH ASSETS INCOME UTILITIES
- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
$ 0.0334 $ 0.4402 $ 0.0740 $ 0.1763 $ 0.0455 $ 0.0142
</TABLE>
<PAGE>
Trustees
------------------------------------------------------
<TABLE>
<S> <C>
Jack F. Bennett Dr. Manuel H. Johnson
Michael Bozic Paul Kolton
Charles A. Fiumefreddo Michael E. Nugent
Edwin J. Garn Philip J. Purcell
John R. Haire John L. Schroeder
</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
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
<PAGE>
Northbrook Life
Insurance Company
P.O. Box 94040
Palatine, IL 60094-4040
DEAN WITTER VARIABLE
INVESTMENT SERIES
ANNUAL REPORT
DECEMBER 31, 1994
[LOGO] DEAN WITTER
<PAGE>
DEAN WITTER VARIABLE QUALITY INCOME PLUS PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL LEHMAN
March 1, 1987 $10,000 $10,000
December 31, 1987 $10,262 $10,109
December 31, 1988 $11,014 $10,907
December 31, 1989 $12,421 $12,491
December 31, 1990 $13,271 $13,611
December 31, 1991 $15,759 $15,788
December 31, 1992 $17,060 $16,957
December 31, 1993 $19,276 $18,610
December 31, 1994 $17,998(3) $18,066
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
-6.63 (1) 7.70 (1) 7.79 (1)
________ Fund ________ Lehman (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The Lehman Brothers Mutual Fund Aggregate Bond Index tracks the performance
of all U.S. Government agency and Treasury securities,investment-grade
corporate debt securities, agency mortgage-backed securities and asset-
backed securities.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE HIGH YIELD PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL LEHMAN
December 31, 1984 $10,000 $10,000
December 31, 1985 $12,742 $12,414
December 31, 1986 $15,052 $14,471
December 31, 1987 $14,598 $14,862
December 31, 1988 $16,180 $16,281
December 31, 1989 $14,166 $18,319
December 31, 1990 $10,548 $19,327
December 31, 1991 $16,680 $23,317
December 31, 1992 $19,741 $25,495
December 31, 1993 $24,495 $28,768
December 31, 1994 $23,890(3) $27,776
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
-2.47 (1) 11.02 (1) 9.10 (1)
________ Fund ________ Lehman (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The Lehman Brothers Mutual Fund Corporate/High Yield Index tracks the
performance of all investment and noninvestment-grade corporate debt
securities.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE UTILITIES PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500
December 31, 1984 $10,000 $10,000
March 1, 1990 $10,000 $10,000
December 31, 1990 $10,452 $10,235
December 31, 1991 $12,601 $13,347
December 31, 1992 $14,194 $14,363
December 31, 1993 $16,422 $15,808
December 31, 1994 $14,940(3) $16,016
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
-9.02 (1) 8.66 (1)
________ Fund ________S&P 500 (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE DIVIDEND GROWTH PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500
March 1, 1990 $10,000 $10,000
December 31, 1990 $ 9,219 $10,235
December 31, 1991 $11,778 $13,347
December 31, 1992 $12,740 $14,363
December 31, 1993 $14,567 $15,808
December 31, 1994 $14,090(3) $16,016
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
-3.27 (1) 7.35 (1)
________ Fund ________ S&P 500 (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE CAPITAL GROWTH PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500
March 1, 1991 $10,000 $10,000
December 31, 1991 $12,841 $11,563
December 31, 1992 $13,051 $12,443
December 31, 1993 $12,139 $13,696
December 31, 1994 $11,984(3) $13,875
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
-1.28 (1) 4.83 (1)
________ Fund ________ S&P 500 (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE GLOBAL DIVIDEND GROWTH PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500 MSCI WORLD IX
February 23, 1994 $10,000 $10,000 $10,000
December 31, 1994 $10,027(3) $10,002 $ 9,958
AVERAGE ANNUAL TOTAL RETURN
LIFE OF FUND
0.31 (1)
________ Fund ________ MSCI WORLD IX (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The Morgan Stanley Capital International World Index (MSCI) measures
performance for a diverse range of global stock markets including the
U.S.,Canada, Europe, Australia, New Zealand and the Far East. The index
does not include any expenses, fees or charges or reinvestment of
dividends.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE EUROPEAN GROWTH PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500 MSCI WORLD IX
March 1, 1991 $10,000 $10,000 $10,000
December 31, 1991 $10,134 $11,563 $10,399
December 31, 1992 $10,539 $12,443 $ 9,656
December 31, 1993 $14,847 $13,696 $11,625
December 31, 1994 $16,089(4) $13,875 $12,016
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
8.36 (1) 13.20 (1)
________ Fund ________ S&P 500 (2) ________ MSCI WORLD INDEX (3)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value. It does not reflect the deduction of any
insurance expenses, and annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) The Morgan Stanley Capital International World Index (MSCI) measures
performance for a diverse range of global stock markets including the
U.S.,Canada, Europe, Australia, New Zealand and the Far East. The index
does not include any expenses, fees or charges or reinvestment of
dividends.
(4) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE PACIFIC GROWTH PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500 MSCI WORLD IX
February 23, 1994 $10,000 $10,000 $10,000
December 31, 1994 $ 9,327(3) $10,002 $ 9,958
AVERAGE ANNUAL TOTAL RETURN
LIFE OF FUND
-7.83 (1)
________ Fund ________ MSCI WORLD IX (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The Morgan Stanley Capital International World Index (MSCI) measures
performance for a diverse range of global stock markets including the
U.S.,Canada, Europe, Australia, New Zealand and the Far East. The index
does not include any expenses, fees or charges or reinvestment of
dividends.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE EQUITY PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500
December 31, 1984 $10,000 $10,000
December 31, 1985 $12,366 $13,173
December 31, 1986 $14,449 $15,631
December 31, 1987 $13,549 $16,452
December 31, 1988 $14,882 $19,175
December 31, 1989 $17,685 $25,241
December 31, 1990 $17,045 $24,460
December 31, 1991 $27,110 $31,898
December 31, 1992 $27,124 $34,325
December 31, 1993 $32,474 $37,780
December 31, 1994 $30,878(3) $38,276
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
-4.91 (1) 11.79 (1) 11.93 (1)
________ Fund ________ S&P 500 (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE MANAGED ASSETS PORTFOLIO
GROWTH OF $10,000
($ IN THOUSANDS)
DATE TOTAL S&P 500
March 4, 1987 $10,000 $10,000
December 31, 1987 $10,123 $ 8,787
December 31, 1988 $11,418 $10,241
December 31, 1989 $12,637 $13,481
December 31, 1990 $12,833 $13,064
December 31, 1991 $16,460 $17,036
December 31, 1992 $17,651 $18,332
December 31, 1993 $19,484 $20,178
December 31, 1994 $20,251(3) $20,443
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
3.94 (1) 9.89 (1) 9.43 (1)
________ Fund ________ S&P 500 (2)
Past performance is not predictive of future returns.
- ---------------
(1) Figure assumes reinvestment of all distributions for the underlying fund
based on net asset value (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
(3) Closing value on December 31, 1994 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
