<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
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Robust corporate earnings, benign inflation and a steadily advancing bond
market combined to propel stocks higher and higher in 1995, as evidenced by the
Dow Jones Industrial Average's (DJIA) vault over 4000 and then 5000. The S&P 500
and NASDAQ Indexes also were strong, advancing nearly 38 and 40 percent,
respectively, for the year. Despite a brief 100-point detour in mid December
(brought about by anxiety over budget wrangling in Washington, an economy
perceived to be weakening and the belief that the Federal Reserve Board would
not cut interest rates, which it subsequently did), equities continued to chug
along through year end. Overall, the DJIA was up nearly 37 percent for the year.
Throughout the past 12 months interest rates moved sharply downward as
economic growth slowed to a more sustainable level and inflationary fears all
but disappeared. As a result, the Federal Reserve Board eased monetary policy by
twice lowering the federal-funds rate by 25 basis points, first in early July
and again in mid December. Overall the fixed-income markets, in general, and the
U.S. Treasury market, in particular, reacted favorably. In all, the yield on
30-year U.S. Treasury bonds declined from 7.88 percent on January 1, 1995 to
5.95 percent on December 31, 1995. Similarly, 2-year U.S. Treasury note yields
declined from 7.70 percent to 5.15 percent during the year.
Globally, the early months of 1995 were dominated by many of the issues that
influenced world markets in 1994: the weakness of the U.S. dollar, concerns over
rising U.S. interest rates and the financial collapse in Mexico and many other
emerging markets. However, during the last three quarters of 1995 the global
influences on Europe's stock markets became much more benign, as currencies
stabilized, bonds rallied and the interest-rate cycle in the United States
shifted. Economic data coming out of Europe itself, by contrast, began the year
strong, but steadily deteriorated as many economies experienced a growth pause
that was well entrenched by year-end. The steady rise of the deutschemark took
its toll on German exporters, as well as industrial conglomerates. Consumers
across Europe were apparently unwilling or unable to boost retail sales and
unemployment, in most countries, stopped its downward path. The result was a
number of profit warnings from cyclical and economically sensitive companies
toward the end of the year. Certain industries, such as pulp, paper, steel and
chemicals, got caught in the global economic downturn. European technology
stocks corrected in line with their U.S. counterparts.
Politics, as always, featured prominently in Europe in 1995. The French
stock market ran strongly in the first quarter in anticipation of major
structural economic reforms by the Chirac administration. By year end, with most
public sector workers on strike, the French market had retracted and ended 1995
as one of Europe's worst performers. Italy also suffered from interrelated
budgetary/government/currency crises that refuse to go away. By contrast, the
U.K. market was strong despite the weakness of the Conservative government.
Switzerland, the strongest European market in 1995 was, as ever, untroubled by
politics, and the strong Swiss franc boosted returns even more for U.S-dollar
based investors.
A number of Asian currencies came under severe pressure in the early weeks
of 1995, forcing local authorities to respond with higher interest rates. By
May, increasing indications that the U.S. interest rate environment was
beginning to improve underpinned a stronger recovery in sentiment across the
region. Notable exceptions were Japan, Korea and Taiwan, all of which remained
weak.
<PAGE>
The situation began to reverse in July 1995, when the markets were hit by a
reallocation of funds out of the "Tiger" markets of southeast Asia as investors
returned to Japan. The Japanese market rose sharply in local currency terms
through July, August and September, encouraged by a weaker yen and hopes for a
rescue package for the banking sector. However, the weaker yen wiped out all
gains in U.S.-dollar terms.
The Tiger markets were particularly weak through most of the third and
fourth quarters, with concerns over economic overheating exacerbated by poor
current account data. However, most markets began to recover toward the end of
the year, with the 25 basis point cut in short-term U.S. interest rates in
December triggering a dramatic resurgence in investor interest in the markets of
the Pacific basin. Strong cash inflows from the United States and, to a lesser
degree, Europe helped carry the Tigers higher. Japan ended the year on a
positive note, buoyed by a major government stimulus package, a weaker yen and
encouraging economic data.
In general, Mexico, Central and South American markets stabilized in the
fourth quarter after very volatile conditions in the first half of the year.
Led by the U.S. market, global bond yields declined substantially during
1995, reflecting a worldwide slowdown in economic growth and declining inflation
levels. In Europe, bond markets turned in a mixed performance early in the year,
supported on the one hand by the U.S. bond rally, but undermined, on the other
hand, by local political and budget issues, especially in Italy. These markets
rallied during the remainder of the year as these issues were addressed in a
more decisive fashion. Also aiding this rally was the lowering of interest rates
in Germany in response to slowing economic growth and improving inflation
prospects.
In the foreign exchange markets, the U.S. dollar plummeted to new historical
lows against the Japanese yen and the German mark during the first four months
of the year, mainly due to the ongoing trade dispute between the U.S. and Japan.
During the remainder of the year, however, the U.S. currency regained some of
its composure. This was thanks to aggressive and concerted intervention by the
U.S., German and Japanese central banks, the U.S.-Japan agreement on auto parts,
and subsequently, the unveiling of the Japanese deregulatory package combined
with two reductions of the Japanese Official Discount Rate. For the 12-month
period, the U.S. dollar depreciated by 7.5 percent against the German mark,
while appreciating 3.8 percent against the Japanese yen. Overall, the U.S.
currency lost 4.4 percent on a trade-weighted basis.
CAPITAL GROWTH PORTFOLIO
The Capital Growth Portfolio posted a total return of 32.92 percent for the
fiscal year ended December 31, 1995, versus 37.57 percent for the Standard &
Poor's 500 Composite Stock Price Index (S&P 500). The reason for this relative
underperformance was the market's focus on smaller capitalization issues
(particularly technology stocks), an area in which the Portfolio has little
representation. The accompanying chart compares the performance of a $10,000
investment in the Portfolio from inception (March 1, 1991) through the fiscal
year ended December 31, 1995, with the performance of a similar hypothetical
investment in the issues comprising the S&P 500.
On December 31, 1995, the Portfolio owned 45 equity issues spread among 37
industry groups. During the fiscal year, positions sold included Central
Fidelity Banks, Banc One Corp., Crawford & Co. (Class B) and Rubbermaid. New
additions to the Portfolio included American International Group, Inc., Home
Depot, Inc., U.S. Healthcare, Computer Associates, Johnson & Johnson and
Medtronic, Inc.
In 1996, the Portfolio intends to continue to focus its investments in
issues with long, consistent records of revenue and earnings growth.
<PAGE>
[CAPITAL]
DIVIDEND GROWTH PORTFOLIO
Two new common stock positions were added to the Dividend Growth Portfolio
during the fiscal year ended December 31, 1995: KeyCorp and Sprint Corp.
Additionally, four positions were eliminated: Bankers Trust NY, GTE Corp., Kmart
and U.S. West Media Group, (a spin-off of U.S. West Inc.). As of December 31,
the portfolio consisted of 45 equity issues spread among 29 industry groups,
plus five U.S. Treasury bond and note issues.
For the fiscal year, the Portfolio had a total return of 36.38 percent,
compared with a 37.57 percent for the Standard & Poor's 500 Composite Stock
Price Index (S&P 500). The slight lag in performance is attributable to the
market's focus on smaller capitalization issues (particularly technology
stocks), an area in which the Fund has little or no representation. The
accompanying chart compares the performance of a $10,000 investment in the
Portfolio from inception (October 25, 1990) through the fiscal year ended
December 31, 1995, with the performance of a similar hypothetical investment in
the issues comprising the S&P 500.
The Portfolio intends to continue to focus its investments in the more
conservative, larger capitalization issues.
[DIVIDEND]
EQUITY PORTFOLIO
The Equity Portfolio produced a total return of 42.53 percent for the fiscal
year ended December 31, 1995. This performance compares quite favorably with
that of the Standard & Poor's 500 Composite Stock Price Index (S&P 500), which
registered a total return of 37.57 percent, as well as that of the average
growth fund, which had a total return of 32.47 percent, according to Lipper
Analytical Services, Inc. For the fiscal year, the Portfolio was ranked #9 of 98
(top 9 percent) underlying variable annuity growth funds, according to Lipper.
The accompanying chart
<PAGE>
compares the performance of a $10,000 investment in the Portfolio for the 10
years ended December 31, 1995, with the performance of a similar hypothetical
investment in the issues comprising the S&P 500.
The Portfolio's industry selection focus continued to be effective in 1995.
At the beginning of the year, the portfolio manager took a top-down look at the
year ahead and concluded that while economic growth was likely to slow (allowing
interest rates to decline), the economy would remain vibrant enough to support
investment and capital spending for most of the year. As a result, for the first
three quarters of the year the Portfolio was heavily tilted toward technology,
with a peak weighting of 40 to 45 percent.
Financial stocks were also a major theme, given the portfolio manager's
outlook for modest economic growth and benign inflation and interest rates. For
most of the year financials represented 20 percent of the Portfolio's net
assets. Over the fiscal year, the technology and financial sectors provided the
strongest returns in the market and thus played a major role in the Portfolio's
performance.
In September, as evidence began to mount suggesting that the economy was
further decelerating and entering the latter stages of the economic expansion,
the portfolio manager began to pare back the Portfolio's technology holdings,
because capital spending tends to drop off late in the economic cycle. By the
end of December technology represented less than 10 percent of net assets.
Significant holdings in this area include Cisco Systems, Inc., Sun Microsystems,
Inc. and Ascend Communications, Inc.
As the Portfolio's technology exposure was decreasing, the
interest-rate-sensitive portion of the portfolio was being increased, because
that sector historically has appreciated in the face of sluggish economic growth
and falling interest rates. At the end of the fiscal year, interest-rate-
sensitive holdings represented approximately 40 percent of the Portfolio. Of
this allocation, 15 percent was invested in long-term U.S. Treasury bonds, as
these instruments are particularly sensitive to interest rates but hold no
credit risk, because they are backed by the U.S. government. Since credit
delinquencies tend to rise at this stage of the business cycle, exposure to many
consumer lenders was reduced. Equity holdings in this area include Travelers
Group, Inc., American International Group, Inc. and Federal National Mortgage
Association. The Portfolio's commitment to health care was expanded to
approximately 20 percent because this sector has little economic sensitivity.
Names here include Amgen Inc., American Home Products Corp., SmithKline Beecham
and United Healthcare Corp.
[EQUITY]
Capital goods represented 8 percent of the Portfolio with such holdings as
Boeing Co., Loral Corp., Case Corp. and Monsanto Co. Consumer staples
represented about 6 percent of the Portfolio, with holdings such as
Kimberly-Clark Corp., Philip Morris Companies, Inc. and Procter &
<PAGE>
Gamble Co. Approximately 5 percent of net assets was invested in steady growth
consumer/ business services companies such as DST Systems, Inc.
EUROPEAN GROWTH PORTFOLIO
During the fiscal year ended December 31, 1995, the European Growth
Portfolio posted a total return of 25.89 percent. This compares with a return of
18.70 percent for the Morgan Stanley Capital International World Index. For the
year, the Portfolio ranked #1 of 55 underlying variable annuity international
funds. The accompanying chart compares the performance of a $10,000 investment
in the Portfolio from inception (March 1, 1991) through the fiscal year ended
December 31, 1995, with the performance of a similar hypothetical investment in
the issues comprising the World Index.
The Portfolio's sub-advisor is Morgan Grenfell Investment Services Limited
(Morgan Grenfell). According to Morgan Grenfell, the Portfolio was fully
invested during the fiscal year and the main thematic shift was away from the
strongly cyclical stance of 1994 to a more balanced split between cyclicals,
financials and growth stocks. Effective stock selection played a major role in
the Portfolio's strong performance versus the World Index.
The Portfolio's current emphasis on interest-rate sensitive stocks, such as
Den Danske Bank (Denmark), BBV and Banco Popular (Spain), Cetelem Groupe
(France), and Bayerische Vereinsbank (Germany), leaves it well positioned to
benefit from the downward economic trend prevalent in many European markets. As
always, high-quality blue-chip growth stocks -- Granada Group (United Kingdom),
LVMH (France), Securitas (Sweden) and Gehe (Germany) -- feature prominently in
the Portfolio. Selected cyclical and economically sensitive stocks include
Volkswagen (Germany) and VA Technologie (Austria). The Portfolio's only currency
hedge during
the fiscal year was out of the French franc and into the U.S. dollar to protect
against a possible devaluation of the franc. That hedge remained in place at
year end.
[EUROPEAN]
GLOBAL DIVIDEND GROWTH PORTFOLIO
During the fiscal year ended December 31, 1995, the Global Dividend Growth
Portfolio posted a total return of 22.14 percent, compared to 18.70 percent for
the Morgan Stanley Capital International World Index. Since inception (February
23, 1994), the Portfolio's cumulative total return was 22.47 percent, versus
17.81 percent for the World Index. The accompanying chart compares the
performance of a $10,000 investment in the Portfolio from inception through the
fiscal year ended December 31, 1995, with the performance of a similar
hypothetical investment in the issues comprising the World Index.
The number of issues held by the Portfolio increased from 79 to 112 during
the year. Examples of issues added include International Business Machines Corp.
and International Paper Co.
<PAGE>
(United States); Television Francaise and Societe Generale (France); Mizuno
Corp., Nintendo Co., Ltd. and Sharp Corp. (Japan); and Scottish Hydro-Electric
(United Kingdom). These investments are in the world's 12 largest capital
markets.
During the fiscal year, the Portfolio's commitment to the United States
increased to just over 30 percent of net assets. This was done in anticipation
of the possibility that the U.S. dollar could strengthen against major foreign
currencies and was accomplished by slightly reducing investments in Italy, Japan
and the United Kingdom.
[GLOBAL]
HIGH YIELD PORTFOLIO
The high-yield market recorded a solid year in 1995, benefiting from the
strong rally in the Treasury market, which drove long-term interest rates
significantly lower. As is typical in a decelerating economic environment,
high-yield bonds lagged the Treasury rally a bit, as concerns over the severity
of the slowdown offset some of the benefit of lower interest rates.
Against this backdrop, the High Yield Portfolio posted a total return of
14.93 percent, versus a return of 21.73 percent for the Lehman Brothers
Corporate/High Yield Index. The accompanying chart compares the performance of a
$10,000 investment in the Portfolio for the 10 years ended December 31, 1995,
with the performance of a similar hypothetical investment in the issues
comprising the Lehman Brothers Corporate/High Yield Index.
The Portfolio remained essentially unchanged during 1995, with a continued
emphasis on discounted issues (primarily B-rated). Given their significant yield
advantage over U.S. Treasuries and their relative value, the portfolio manager
feels this sector offers attractive total return potential. Despite the
attractiveness of the market, the Portfolio continues to maintain a sizeable
position in various defensive securities in order to maintain maximum portfolio
flexibility.
[HIGH]
<PAGE>
As a result of recent recession fears, the B-rated sector currently looks
attractive, with many issues yielding 12 to 13 percent (600-700 basis points
over U.S. Treasuries) and trading at substantial discounts. Given the strong
credit quality that exists today, along with the possibility of a pickup in the
economy, the high-yield sector also appears to offer an attractive risk/reward
tradeoff. However, short-term volatility -- both up and down -- is likely to
continue as the markets respond to the latest economic data, as well as assess
the budget debate in Washington.
MONEY MARKET PORTFOLIO
As of December 31, 1995, the Money Market Portfolio had an average life of
71 days. The Portfolio's net yield for the fiscal year was 5.52 percent and its
annualized yield for December was 5.22 percent.
On December 31, 1995, approximately 72 percent of the Portfolio consisted of
high-quality commercial paper, with 18 percent invested in short-term bank notes
and certificates of deposit of major, financially strong commercial banks, 9
percent in bankers' acceptances issued by such institutions and the remaining 1
percent in federal agency obligations.
At the end of the fiscal year, nearly 80 percent of net assets were
scheduled to mature in less than four months. Therefore, we believe the
Portfolio is well positioned for stability of value with a high degree of
liquidity. You can be assured that we continue to operate the Fund in a
straight-forward, conservative style without "structured" notes or derivative
securities, which can fluctuate excessively with interest rate changes.
Investment yields available to the Portfolio during the first half of 1996
are expected to be lower than those achieved during the second half of 1995.
Nonetheless, 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.
PACIFIC GROWTH PORTFOLIO
During the fiscal year ended December 31, 1995, the Pacific Growth Portfolio
provided a total return of 5.74 percent. During the same period, the Morgan
Stanley Capital International World Index posted a total return of 18.70
percent.
The disparity between these performance figures is attributable to the fact
that the World Index includes a wide range of global stock markets, including
the United States and a number of European markets, many of which significantly
outperformed the Southeast Asian markets. The accompanying chart compares the
performance of a $10,000 investment in the Portfolio from inception (February
23, 1994) through the fiscal year ended December 31, 1995, with the performance
of a similar hypothetical investment in the issues comprising the Morgan Stanley
Capital International World Index.
[PACIFIC]
<PAGE>
For the Pacific Growth Portfolio, the currency hedge out of the yen into the
U.S. dollar secured most of the local currency gains. At year end, the
Portfolio's largest country representations were Hong Kong (21 percent of net
assets), Japan (16 percent) and Malaysia (14 percent). At 13 percent, banking
and real estate were the Portfolio's largest industry concentrations.
QUALITY INCOME PLUS PORTFOLIO
For the fiscal year ended December 31, 1995, the Quality Income Plus
Portfolio produced a total return of 24.30 percent. The Portfolio's performance
outpaced both the Lehman Brothers Aggregate Bond Index (18.47 percent) and the
average variable corporate debt (A-rated) fund (19.31 percent according to
Lipper Analytical Services, Inc.). For the fiscal year, the Portfolio ranked #2
of 26 underlying variable annuity corporate debt (A-rated) funds; for the
five-year period ended December 31, 1995, the Portfolio ranked #2 of 21 such
funds, according to Lipper. The accompanying chart compares the performance of a
$10,000 investment in the Portfolio from inception (March 1, 1987) through the
fiscal year ended December 31, 1995, with the performance of a similar
hypothetical investment in the issues comprising the Lehman Brothers Aggregate
Bond Index.
At the beginning of 1995, the U.S. Treasury yield curve was relatively flat
with the 2-year U.S. Treasury note yielding 7.69 percent, both the 5-year note
and 10-year bond yielding 7.83 percent and the 30-year bond yielding 7.88
percent. By year end, the two-year yield had plummeted to 5.15 percent, the
10-year to 5.57 percent and the 30-year to 5.95 percent. The accompanying
returns were excellent, as highlighted by the 10-year U.S. Treasury bond, which
returned nearly 24 percent for the year.
During 1995, the Portfolio was structured to meet long-term investment
objectives by allocating the majority of its assets in instruments with
maturities or average lives greater than 8 years. The combination of
well-structured non-callable high-quality corporate securities -- which
generally represent 55 to 60 percent of the Portfolio -- and a 23 to 33 percent
allocation in AAA-rated mortgage-backed pass-through securities brought the
Portfolio's average quality level to AA. The weighted average maturity ranged
from 13.5 to 17.8 years during the fiscal year. The diversified asset-allocation
strategy, which focuses principally on corporate bonds, is reviewed on an
ongoing basis. Asset shifts between sectors, such as U.S. Treasury instruments
sold to purchase mortgage-backed securities, occur regularly to capitalize on
the constantly changing investment environment.
[QUALITY]
STRATEGIST PORTFOLIO
The Strategist Portfolio (formerly the Managed Assets Portfolio), which
continues to operate as an asset-allocation fund, was restructured in 1995 as a
result of the adoption of a new management approach and portfolio management
team. This shift occurred September 1, 1995 and thus only partially impacted the
Portfolio's performance during 1995. For the full fiscal year, the
<PAGE>
Portfolio posted a total return of 9.40 percent. For the same period, the S&P
500 and Lehman Brothers Government/Corporate Bond Index produced total returns
of 37.57 percent and 19.24 percent, respectively. The accompanying chart
compares the performance of a $10,000 investment in the Portfolio from inception
(March 4, 1987) through the fiscal year ended December 31, 1995, with the
performance of a similar hypothetical investment in the issues comprising the
S&P 500 and the Lehman Brothers Government/Corporate Bond Index.
The Portfolio's asset allocation at year end stood at approximately 75
percent equity, 20 percent bonds and 5 percent cash. The standard neutral
allocation is considered 55 percent equity, 35 percent bonds and 10 percent
cash, which indicates that we are currently overweighing stocks and under
weighting both bonds and cash. The portfolio manager continues to view equities
as the asset class of choice, based on reasonable historical valuation levels,
strong profit margins throughout corporate America, a slow but steady economic
recovery and the relatively low yields available in the fixed-income markets.
This allocation is expected to be maintained well into 1996, since history has
shown that presidential election years (which have a low probability of
recession) tend to provide above-average returns for stocks.
The equity portion of the Portfolio is well diversified among both industry
sectors and market capitalizations. For example, we currently favor technology
stocks and hold large "blue-chip" issues such as IBM and Hewlett Packard Co., as
well as smaller-capitalization companies like Broderbund Software, Inc. and Bay
Networks, Inc. Other overweighted sectors include financials, consumer staples
and basic materials, while market weights are maintained in such sectors as
energy, consumer cyclicals and industrials. Only one sector, utilities, was
underweighted as of December 31, 1995.
The Portfolio's fixed-income investments consist of U.S. government and
corporate bonds with a broad range of maturities and yields. The fixed-income
portfolio is divided evenly between U.S. government and corporate securities.
The average maturity and duration as of December 31, 1995 was approximately 12
and 7 years, respectively.
[STRATEGIST]
UTILITIES PORTFOLIO
The lower interest rate environment that prevailed over the first six months
of 1995 continued into and throughout the second-half of the year. Combined with
the generally improved fundamental outlook of the various utility sectors, the
portfolio maintained its strong performance and
<PAGE>
realized a total return of 28.65 percent for the fiscal year ended December 31,
1995. The S&P 500 posted a total return of 37.57 percent for the same period.
The accompanying chart illustrates the growth of a $10,000 investment in the
Fund from inception (March 1, 1990) through the fiscal year ended December 31,
1995 versus a similar investment in the issues that comprise the Standard and
Poor's 500 Index.
While comparatively weak economic statistics and a favorable inflation
outlook dominated the news over the last quarter of the year, a positive stream
of industry-specific events gave further support to a strong environment for
utility investments. As the year drew to a close, select state regulatory
directives regarding the transition from monopoly to competition within the
electric utility sector were an encouraging sign that the industry would be
afforded a reasonable opportunity to maintain financial integrity and enhance
earnings and growth prospects.
The telecommunications sector progressed to a point where -- short of final
legislation -- the shift to competition is expected to be successful for both
local and long-distance companies. A final telecom bill, which is expected in
early 1996, should be a positive event for all segments of the worldwide
telecommunications industry, including both service and manufacturing companies.
Not unlike the strong market performance of the electric and
telecommunications industries, the natural-gas sector provided very favorable
price appreciation, particularly during the latter stages of the year as cold
weather appeared and the supply and demand balance favored higher commodity
prices. Beyond the short-term pricing abnormalities of natural gas, the
portfolio manager's long-term view remains very favorable.
The portfolio maintained its near fully invested position with a year-end
asset allocation of 86 percent equity, 10 percent fixed income and 4 percent
cash. Within the equity component, 49 percent is committed to electric
utilities, 37 percent to telecommunications and 14 percent to natural gas.
Foreign securities, in the form of American Depositary Receipts (ADRs), which
are shares of foreign-based companies held in the United States, account for 5
percent of net assets, with the emphasis on telecommunications. Going forward,
the Portfolio expects to maintain its focus on a well-diversified allocation of
utility and utility-related investments, with a focus on above-average quality.
[UTILITIES]
LOOKING AHEAD
Of course, the stock market cannot be expected to rise unabated forever.
Following further advancement in 1996 leading up to the presidential election,
it is reasonable to expect some turbulence. The post-election surprise could be
a resurgence of inflationary pressure that would inspire another round of
Federal Reserve Board tightenings in 1997. The prospect of short-term pain,
however, is probably a year or so off. And as we learned from 1994, such a
correction -- if it were to occur -- could actually be a buying opportunity for
stocks.
<PAGE>
We expect the economy to experience a protracted economic slowdown extending
into the latter part of 1996. Falling interest rates, expanding price/earnings
ratios and modest earnings growth on the order of 5 percent should continue to
drive the broader markets higher. However, we expect the market to narrow, as
fewer and fewer companies will be able to sustain their recent growth rates. For
those companies that can sustain earnings growth rates of 10 percent or more,
price/earnings ratios should continue to expand. At some point later in the year
we expect the market to begin to look out over the earnings valley as further
Federal Reserve Board rate cuts enable investors to extend their investment
horizons.
Morgan Grenfell believes that prospects for the European equity markets are
positive, although the earnings outlook for early 1996 is somewhat clouded by
the current growth pause in the economies. Most European governments are set to
lower interest rates substantially in an effort to re-stimulate the economies.
Asian-Pacific prospects are also positive, according to Morgan Grenfell,
which expects regional gross domestic product growth to remain near 7 percent,
on average, fueled by
strong domestic consumption, infrastructure spending and trade, especially on an
intraregional basis. Against this backdrop, Morgan Grenfell expects corporate
earnings growth to average between 16 and 17 percent. While higher interest
rates resulted in downward revisions to earnings in 1995, Morgan Grenfell
believes that trend may stabilize in 1996, with upward revisions possible later
in the year, given a more benign interest-rate environment.
We appreciate your support of Dean Witter Variable Investment Series and
look forward to continuing to serve your investment needs and objectives.
Very truly yours,
[SIGNATURE]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
* * *
The net asset values (the "NAVs") presented in the financial statements of Dean
Witter Variable Investment Series (the "Fund") reflect the net asset values of
each of the respective Portfolios. The Fund is the underlying investment for
various variable annuity contracts and as such, the NAVs of each Portfolio are
not indicative of the unit values of the insurance company separate accounts.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
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<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT (IN ON DATE OF MATURITY
THOUSANDS) PURCHASE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (71.7%)
AUTOMOTIVE - FINANCE (8.2%)
$ $11,075 Ford Motor Credit Co.................................... 5.53-5.78% 01/22/96-05/09/96 $ 10,953,289
9,500 General Motors Acceptance Corp.......................... 5.50-5.84 01/30/96-05/17/96 9,354,106
---------------
20,307,395
---------------
BANK HOLDING COMPANIES (11.0%)
1,570 Barnett Banks Inc....................................... 5.87 01/09/96 1,567,449
11,580 Chemical Banking Corp................................... 5.53-5.77 03/07/96-04/25/96 11,415,253
9,070 NationsBank Corp........................................ 5.78-5.79 01/18/96-02/07/96 9,027,140
5,500 Norwest Corp............................................ 5.80 02/22/96 5,453,222
---------------
27,463,064
---------------
BANKS - COMMERCIAL (15.2%)
10,000 Abbey National North America Corp....................... 5.43-5.69 01/08/96-06/03/96 9,929,015
10,500 Canadian Imperial Holdings Inc.......................... 5.80 01/05/96-02/23/96 10,443,834
3,000 National Australia Funding (DE) Inc..................... 5.53 06/14/96 2,925,128
7,125 Rabobank USA Financial Corp............................. 5.82 01/17/96-01/19/96 7,103,397
3,000 Toronto-Dominion Holdings USA Inc....................... 5.49 04/03/96 2,957,171
4,635 UBS Finance (DE) Inc.................................... 5.90 01/02/96 4,632,721
---------------
37,991,266
---------------
BROKERAGE (8.4%)
9,495 Goldman Sachs Group L.P................................. 5.71-6.06 01/11/96-03/08/96 9,429,248
11,600 Morgan Stanley Group Inc................................ 5.80-5.82 01/11/96-01/25/96 11,567,423
---------------
20,996,671
---------------
FINANCE - COMMERCIAL (4.1%)
10,485 CIT Group Holdings, Inc................................. 5.52-5.70 02/15/96-05/10/96 10,345,698
---------------
FINANCE - CONSUMER (7.2%)
11,680 American Express Credit Corp............................ 5.44-5.76 01/23/96-07/01/96 11,521,918
4,235 Beneficial Corp......................................... 5.84 01/29/96-01/31/96 4,213,904
2,165 Household Finance Corp.................................. 5.78 01/24/96 2,156,430
---------------
17,892,252
---------------
FINANCE - DIVERSIFIED (3.8%)
9,600 General Electric Capital Corp........................... 5.52-5.79 02/01/96-06/12/96 9,461,317
---------------
FINANCE - EQUIPMENT (2.2%)
5,500 Deere (John) Capital Corp............................... 5.67-5.81 01/10/96-03/14/96 5,460,772
---------------
OFFICE EQUIPMENT (4.1%)
10,450 IBM Credit Corp......................................... 5.65-5.79 01/03/96-04/12/96 10,336,104
---------------
RETAIL (4.5%)
11,295 Sears Roebuck Acceptance Corp........................... 5.73-5.81 02/13/96-03/06/96 11,200,509
---------------
TELEPHONES (1.8%)
4,630 AT&T Corp............................................... 5.74 02/02/96 4,605,512
---------------
UTILITIES - FINANCE (1.2%)
3,030 National Rural Utilities Cooperative Finance Corp....... 5.72 02/05/96 3,012,405
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $179,072,965)..................................... 179,072,965
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT (IN ON DATE OF MATURITY
THOUSANDS) PURCHASE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
SHORT-TERM BANK NOTES (12.8%)
$ 4,000 Bank of New York........................................ 5.59 % 06/05/96 $ 4,000,000
8,000 F.C.C. National Bank.................................... 5.74 03/11/96 8,000,000
4,795 First National Bank of Boston........................... 5.65 04/29/96 4,795,000
2,925 Fleet National Bank..................................... 5.75 02/23/96 2,925,000
3,000 La Salle National Bank.................................. 5.77 02/14/96 3,000,000
5,000 Mellon Bank, N.A........................................ 5.80 04/04/96 5,000,000
4,160 PNC Bank, N.A........................................... 5.75 02/27/96 4,160,000
---------------
TOTAL SHORT-TERM BANK NOTES (AMORTIZED COST $31,880,000)................................. 31,880,000
---------------
BANKERS' ACCEPTANCES (8.8%)
6,000 First Bank National Assoc............................... 5.76 02/06/96 5,964,217
7,000 First Union National Bank of Florida.................... 5.60-5.66 04/03/96-05/17/96 6,872,048
6,462 Mellon Bank, N.A........................................ 5.52-5.80 03/19/96-05/28/96 6,345,837
3,000 Seattle First National Bank............................. 5.63 05/15/96 2,937,437
---------------
TOTAL BANKERS' ACCEPTANCES (AMORTIZED COST $22,119,539).................................. 22,119,539
---------------
CERTIFICATES OF DEPOSIT (5.7%)
7,000 NatWest Bank............................................ 5.83 02/26/96 7,000,000
7,300 Union Bank.............................................. 5.65-5.83 02/09/96-02/28/96 7,300,000
---------------
TOTAL CERTIFICATES OF DEPOSIT (AMORTIZED COST $14,300,000)............................... 14,300,000
---------------
U.S. GOVERNMENT AGENCY (1.4%)
3,675 Federal Farm Credit Bank (Amortized Cost $3,498,233).... 5.49 11/27/96 3,498,233
---------------
TOTAL INVESTMENTS (AMORTIZED COST $250,870,737) (A).................... 100.4% 250,870,737
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS......................... (0.4) (1,084,151)
---------- -------------
NET ASSETS............................................................. 100.0% $ 249,786,586
---------- -------------
---------- -------------
<FN>
- ----------------
(A) 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, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (63.9%)
AUTOMOTIVE (1.0%)
$ 3,000 Ford Motor Co........................................... 9.50 % 09/15/11 $ 3,824,040
1,000 Ford Motor Co........................................... 8.875 01/15/22 1,244,090
---------------
5,068,130
---------------
BANK HOLDING COMPANIES (8.8%)
1,000 Banc One Corp........................................... 8.74 09/15/03 1,157,210
4,000 Banc One Corp........................................... 7.75 07/15/25 4,452,400
1,000 BankAmerica Corp........................................ 9.625 02/13/01 1,157,960
2,000 Boatmen's Bancshares, Inc............................... 9.25 11/01/01 2,309,280
2,000 Boatmen's Bancshares, Inc............................... 6.75 03/15/03 2,065,180
1,000 CoreStates Financial Corp............................... 9.625 02/15/01 1,159,050
5,000 First Bank N.A.......................................... 8.35 11/01/04 5,705,500
5,000 First Union Corp........................................ 6.55 10/15/35 5,125,450
4,000 Fleet Mortgage Group, Inc............................... 6.50 09/15/99 4,086,000
3,500 Household Bank.......................................... 8.45 12/10/02 3,944,885
2,000 Huntington National Bank................................ 7.625 01/15/03 2,157,640
3,000 Marshall & Ilsley Corp.................................. 6.375 07/15/03 3,042,090
3,145 PNC Funding Corp........................................ 9.875 03/01/01 3,664,743
1,000 Republic NY Corp........................................ 7.875 12/12/01 1,095,960
5,000 State Street Boston Corp................................ 5.95 09/15/03 4,940,800
---------------
46,064,148
---------------
BANKS (3.4%)
5,000 Bankers Trust New York Corp............................. 7.50 11/15/15 5,193,200
2,000 Norwest Corporation (Series G).......................... 6.20 12/01/05 1,999,660
3,000 Old Kent Financial Corp................................. 6.625 11/15/05 3,056,790
2,000 Wachovia Corp........................................... 6.375 04/15/03 2,034,960
5,000 Wachovia Corp........................................... 6.80 06/01/05 5,221,100
---------------
17,505,710
---------------
BROKERAGE (2.9%)
1,000 Bear Stearns Companies, Inc............................. 9.125 04/15/98 1,070,360
2,000 Donaldson, Lufkin & Jenrette, Inc....................... 6.875 11/01/05 2,053,240
5,000 Lehman Brothers Holdings Inc............................ 8.50 08/01/15 5,562,400
5,000 Merrill Lynch & Co., Inc................................ 6.64 09/19/02 5,150,300
1,000 Morgan Stanley Group, Inc............................... 9.25 03/01/98 1,069,530
---------------
14,905,830
---------------
FINANCIAL SERVICES (7.9%)
5,000 Aristar, Inc............................................ 6.30 07/15/00 5,078,250
1,000 Associates Corp. North America.......................... 6.75 10/15/99 1,033,830
3,000 Equifax, Inc............................................ 6.50 06/15/03 3,069,600
3,000 Ford Motor Credit Co.................................... 8.20 02/15/02 3,329,670
3,500 Household Finance Corp.................................. 7.75 06/01/99 3,711,575
2,000 Household Finance Corp.................................. 8.95 09/15/99 2,207,240
4,000 ITT Hartford Group Inc.................................. 6.375 11/01/02 4,042,160
2,000 Liberty Mutual - 144A*.................................. 8.20 05/04/07 2,223,120
5,000 MBIA Inc................................................ 7.00 12/15/25 5,145,350
4,000 Nationwide Mutual Insurance - 144A*..................... 6.50 02/15/04 3,986,680
4,000 Norwest Financial Inc................................... 7.875 02/15/02 4,395,320
3,000 Travelers Group, Inc.................................... 7.75 06/15/99 3,173,430
---------------
41,396,225
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
FOOD SERVICES (0.2%)
$ 1,000 McDonald's Corp......................................... 8.875% 04/01/11 $ 1,238,280
---------------
FOODS (1.3%)
10,000 Archer-Daniels-Midland Co............................... 0.00 05/01/02 6,939,100
---------------
HEALTHCARE - DIVERSIFIED (0.7%)
2,000 Kaiser Foundation Health Plan, Inc...................... 9.00 11/01/01 2,304,100
1,000 Kaiser Foundation Health Plan, Inc...................... 9.55 07/15/05 1,253,740
---------------
3,557,840
---------------
INDUSTRIALS (13.9%)
5,000 Alco Standard Corp...................................... 6.75 12/01/25 4,985,800
4,000 Becton, Dickinson & Co.................................. 8.70 01/15/25 4,725,120
5,000 Boeing Co............................................... 7.95 08/15/24 5,897,650
2,000 Burlington Resources, Inc............................... 7.15 05/01/99 2,087,000
1,000 Burlington Resources, Inc............................... 8.50 10/01/01 1,124,820
1,000 Caterpillar, Inc........................................ 9.375 07/15/01 1,162,930
3,000 Caterpillar, Inc........................................ 9.375 08/15/11 3,819,810
5,000 Columbia/HCA Healthcare Corp............................ 9.00 12/15/14 6,191,300
3,000 Columbia/HCA Healthcare Corp............................ 7.19 11/15/15 3,125,460
1,000 Corning, Inc............................................ 8.875 08/15/21 1,235,450
1,000 Knight Ridder, Inc...................................... 8.50 09/01/01 1,119,980
5,000 Lockheed Martin Corp.................................... 7.875 03/15/23 5,461,850
1,000 Maytag Corp............................................. 9.75 05/15/02 1,184,990
5,000 Motorola, Inc........................................... 7.50 05/15/25 5,671,250
5,000 Phillip Morris Companies, Inc........................... 7.50 01/15/02 5,325,850
5,000 Raytheon Co............................................. 7.375 07/15/25 5,362,600
3,250 Rockwell International Corp............................. 7.625 02/17/98 3,384,940
5,000 Seagram Co. Ltd......................................... 6.875 09/01/23 4,982,800
5,000 Walt Disney Co.......................................... 7.55 07/15/93 5,444,950
---------------
72,294,550
---------------
OIL INTEGRATED - DOMESTIC (0.4%)
635 Mobil Oil Corp.......................................... 9.17 02/29/00 683,726
1,000 Texaco Capital, Inc..................................... 9.75 03/15/20 1,369,930
---------------
2,053,656
---------------
PHARMACEUTICALS (3.2%)
5,000 Eli Lilly & Co.......................................... 7.125 06/01/25 5,371,150
5,000 Johnson & Johnson....................................... 8.72 11/01/24 6,057,200
797 Marion Merrell Corp..................................... 9.11 08/01/05 912,682
1,000 McKesson Corp........................................... 8.625 02/01/98 1,057,130
3,000 Zeneca Wilmington, Inc.................................. 7.00 11/15/23 3,092,520
---------------
16,490,682
---------------
REAL ESTATE INVESTMENT TRUST (1.0%)
5,000 Kimco Realty Corp....................................... 6.50 10/01/03 5,025,050
---------------
RETAIL (4.1%)
5,000 Dayton-Hudson Corp...................................... 9.00 10/01/21 5,912,200
5,000 May Department Stores................................... 7.625 08/15/13 5,407,400
5,000 May Department Stores................................... 7.50 06/01/15 5,338,900
1,000 Penney (J.C.) Co., Inc.................................. 9.75 06/15/21 1,183,630
3,000 Wal-Mart Stores, Inc.................................... 7.49 06/21/07 3,308,070
---------------
21,150,200
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS (4.3%)
$ 5,000 AT&T Corp............................................... 8.35 % 01/15/25 $ 5,714,850
3,000 BellSouth Telecommunications, Inc....................... 7.00 10/01/25 3,182,760
5,000 BellSouth Telecommunications, Inc....................... 7.00 12/01/95 5,276,600
5,000 Southwestern Bell Telephone Co.......................... 7.20 10/15/26 5,201,500
3,000 U.S. West Communications, Inc........................... 6.875 09/15/33 2,945,310
---------------
22,321,020
---------------
TRANSPORTATION (2.3%)
5,000 Burlington Northern Santa Fe Corp....................... 7.97 01/01/15 5,639,000
1,000 Consolidated Rail Corp.................................. 9.75 06/15/20 1,351,850
5,000 Ryder System Inc........................................ 6.95 12/01/25 5,030,050
---------------
12,020,900
---------------
UTILITIES - ELECTRIC (6.2%)
1,000 Chugach Electric Company................................ 9.14 03/15/22 1,180,530
3,750 Consolidated Edison Co. of New York, Inc................ 8.05 12/15/27 3,978,600
5,000 Florida Power & Light Co................................ 7.05 12/01/26 5,074,300
1,260 Georgia Power Co........................................ 8.625 06/01/22 1,355,206
5,000 National Rural Utilities Cooperative Finance Corp....... 6.50 09/15/02 5,164,850
5,000 Northern States Power Co................................ 7.25 03/01/23 5,211,500
5,000 Pennsylvania Power & Light Co........................... 7.70 10/01/09 5,650,250
5,000 Southern California Edison Co........................... 7.125 07/15/25 4,965,100
---------------
32,580,336
---------------
WASTE DISPOSAL (2.3%)
5,000 Browning Ferris Industries, Inc......................... 9.25 05/01/21 6,482,600
5,000 Browning Ferris Industries, Inc......................... 7.40 09/15/35 5,371,550
---------------
11,854,150
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $307,200,000)..................................... 332,465,807
---------------
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (30.2%)
1,000 Federal Home Loan Mortgage Corp......................... 8.60 01/26/00 1,031,250
41 Federal Home Loan Mortgage Corp......................... 11.50 06/01/11-05/01/19 45,883
7,602 Federal Home Loan Mortgage Corp. PC Gold................ 6.50 08/01/23-07/01/25 7,519,131
11,811 Federal Home Loan Mortgage Corp. PC Gold................ 8.00 04/01/24-12/01/24 12,239,310
4,136 Federal Home Loan Mortgage Corp. PC Gold................ 8.50 01/01/22-12/01/24 4,316,931
2,000 Federal National Mortgage Association (Principal
Strip)................................................ 0.00 08/21/01 1,938,438
10,000 Federal National Mortgage Association (Principal
Strip)................................................ 0.00 10/09/19 2,175,000
12,941 Federal National Mortgage Association................... 7.00 08/01/25 13,042,431
9,662 Federal National Mortgage Association................... 7.50 08/01/25 9,897,516
18,555 Federal National Mortgage Association................... 8.00 05/01/16-09/01/25 19,215,911
2,098 Federal National Mortgage Association................... 9.00 06/01/21-02/01/25 2,209,799
4,881 Government National Mortgage Association................ 6.50 11/15/23-05/15/24 4,843,300
28,499 Government National Mortgage Association................ 7.00 07/15/22-11/15/25 28,828,686
10,999 Government National Mortgage Association................ 7.50 10/15/21-09/15/24 11,308,805
4,579 Government National Mortgage Association................ 8.00 01/15/22-06/15/25 4,767,396
665 Government National Mortgage Association................ 8.50 01/15/17-11/15/21 698,226
4,450 Government National Mortgage Association................ 9.00 07/15/24-12/15/24 4,713,254
219 Government National Mortgage Association................ 9.50 07/15/17-04/15/20 234,715
246 Government National Mortgage Association................ 10.00 05/15/16-04/15/19 270,112
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
$ 1,600 Private Export Funding Services......................... 5.48 % 09/15/03 $ 1,597,936
11,000 Tennessee Valley Authority (Principal Strip)............ 0.00 04/15/42 3,576,320
5,000 Tennessee Valley Authority.............................. 7.85 06/15/44 5,348,445
7,000 U.S. Treasury Bond...................................... 6.875 08/15/25 7,895,781
5,000 U.S. Treasury Note...................................... 5.875 02/15/04 5,110,156
4,000 U.S. Treasury Note...................................... 6.75 05/31/99 4,176,875
---------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS
(IDENTIFIED COST $150,290,227)......................................................... 157,001,607
---------------
FOREIGN GOVERNMENT & AGENCIES OBLIGATIONS (3.2%)
5,000 Hydro-Quebec (Canada)................................... 9.50 11/15/30 6,491,000
5,000 Italy (Republic of)..................................... 6.875 09/27/23 4,880,250
5,000 Province of New Brunswick (Canada)...................... 7.625 06/29/04 5,519,300
---------------
TOTAL FOREIGN GOVERNMENT & AGENCIES OBLIGATIONS
(IDENTIFIED COST $14,294,890).......................................................... 16,890,550
---------------
SHORT-TERM INVESTMENTS (1.4%)
U.S. GOVERNMENT & AGENCY OBLIGATIONS (A) (1.3%)
2,300 Federal Home Loan Banks................................. 5.75 01/02/96 2,299,632
5,000 U.S. Treasury Bill...................................... 5.23 05/30/96 4,898,550
---------------
7,198,182
---------------
REPURCHASE AGREEMENT (0.1%)
229 The Bank of New York (dated 12/29/95; proceeds $228,732;
collateralized by $228,077 U.S. Treasury Note 5.75% due
09/30/97 valued at $233,229) (Identified Cost
$228,656)............................................... 3.00 01/02/96 228,656
---------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $7,419,330)................................ 7,426,838
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $479,204,447) (B)................... 98.7% 513,784,802
OTHER ASSETS IN EXCESS OF LIABILITIES.................................. 1.3 6,793,753
---------- -------------
NET ASSETS............................................................. 100.0% $ 520,578,555
---------- -------------
---------- -------------
<FN>
- ----------------
* RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN
HAVE BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (87.8%)
AEROSPACE (1.8%)
$ 3,000 Sabreliner Corp. (Series B)......................................... 12.50 % 04/15/03 $ 2,842,500
---------------
AIRLINES (4.3%)
7,057 GPA Delaware, Inc................................................... 8.75 12/15/98 6,616,456
---------------
AUTOMOTIVE (2.2%)
4,750 Envirotest Systems, Inc............................................. 9.625 04/01/03 3,467,500
---------------
CABLE & TELECOMMUNICATIONS (8.2%)
2,404 Adelphia Communications Corp. (Series B)............................ 9.50+ 02/15/04 1,983,609
5,000 AT&T Capital Corp................................................... 15.00 05/05/97 5,595,750
9,485 In-Flight Phone Corp. (Series B).................................... 14.00++ 05/15/02 3,485,738
1,500 Paxson Communications - 144A*....................................... 11.625 10/01/02 1,537,500
---------------
12,602,597
---------------
COMPUTER EQUIPMENT (7.3%)
5,000 IBM Credit Corp..................................................... 15.00 06/13/96 5,201,800
6,250 Unisys Corp......................................................... 13.50 07/01/97 6,000,000
---------------
11,201,800
---------------
CONSUMER PRODUCTS (1.3%)
2,000 J.B. Williams Holdings, Inc......................................... 12.00 03/01/04 2,015,000
---------------
CONTAINERS (2.3%)
6,400 Ivex Holdings Corp. (Series B)...................................... 13.25++ 03/15/05 3,616,000
---------------
ELECTRICAL & ALARM SYSTEMS (2.3%)
4,500 Mosler, Inc......................................................... 11.00 04/15/03 3,543,750
---------------
ENTERTAINMENT/GAMING & LODGING (8.9%)
2,000 Fitzgeralds Gaming Corp. (Units)+++................................. 13.00 12/31/02 1,870,000
3,000 Motels of America, Inc. (Series B).................................. 12.00 04/15/04 2,973,750
3,000 Six Flags Theme Parks Corp. - 144A*................................. 12.25++ 06/15/05 2,347,500
28,065 Spectravision, Inc. (c)............................................. 11.65 12/01/02 2,691,955
4,000 Trump Taj Mahal (Series A).......................................... 11.35+ 11/15/99 3,850,000
---------------
13,733,205
---------------
FOODS & BEVERAGES (13.8%)
7,500 Envirodyne Industries, Inc.......................................... 10.25 12/01/01 5,700,000
5,000 PepsiCo Inc......................................................... 15.00 06/14/96 5,206,400
1,500 SC International Services, Inc...................................... 13.00 10/01/05 1,582,500
4,000 Seven Up/RC Bottling Co. Southern California, Inc. (d).............. 11.50 08/01/99 2,405,000
13,000 Specialty Foods Acquisition Corp. (Series B)........................ 13.00++ 08/15/05 6,370,000
---------------
21,263,900
---------------
MANUFACTURING (5.6%)
1,500 Alpine Group, Inc. - 144A*.......................................... 12.25 07/15/03 1,470,000
2,000 Berry Plastics Corp................................................. 12.25 04/15/04 2,140,000
1,500 Cabot Safety Corp................................................... 12.50 07/15/05 1,597,500
1,000 International Wire Group............................................ 11.75 06/01/05 962,500
2,500 Uniroyal Technology Corp............................................ 11.75 06/01/03 2,400,000
---------------
8,570,000
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
MANUFACTURING - DIVERSIFIED (7.9%)
$ 3,000 Foamex L.P.......................................................... 11.875 % 10/01/04 $ 2,940,000
3,000 Interlake Corp...................................................... 12.125 03/01/02 2,865,000
3,000 J.B. Poindexter & Co., Inc.......................................... 12.50 05/15/04 2,550,000
6,500 Jordan Industries, Inc.............................................. 11.75++ 08/01/05 3,900,000
---------------
12,255,000
---------------
OIL & GAS (2.9%)
2,000 Deeptech International, Inc......................................... 12.00 12/15/00 1,820,000
3,000 Empire Gas Corp..................................................... 7.00 07/15/04 2,655,000
---------------
4,475,000
---------------
PUBLISHING (4.7%)
5,000 Affiliated Newspapers Investments, Inc.............................. 13.25++ 07/01/06 3,137,500
2,000 Garden State Newspapers, Inc........................................ 12.00 07/01/04 2,030,000
1,225 United States Banknote Corp......................................... 10.375 06/01/02 906,500
2,000 United States Banknote Corp......................................... 11.625 08/01/02 1,200,000
---------------
7,274,000
---------------
RESTAURANTS (7.5%)
7,750 American Restaurant Group Holdings, Inc............................. 14.00++ 12/15/05 3,603,750
2,000 Carrols Corp........................................................ 11.50 08/15/03 2,025,000
8,350 Flagstar Corp....................................................... 11.25 11/01/04 5,928,500
---------------
11,557,250
---------------
RETAIL (3.3%)
1,663 Cort Furniture Rental Corp.......................................... 12.00 09/01/00 1,779,410
2,000 County Seat Stores Co............................................... 12.00 10/01/02 1,640,000
1,900 Thrifty Payless, Inc. - 144A*....................................... 11.625+ 04/15/06 1,710,000
---------------
5,129,410
---------------
TEXTILES - APPAREL MANUFACTURERS (3.5%)
5,034 JPS Textile Group, Inc.............................................. 10.85 06/01/99 4,278,900
1,500 U.S. Leather, Inc................................................... 10.25 07/31/03 1,110,000
---------------
5,388,900
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $146,969,799)...................................... 135,552,268
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
COMMON STOCKS (A) (1.9%)
AUTOMOTIVE (0.0%)
87 Northern Holdings Industrial Corp. (Restricted) (b)..................................... --
---------------
COMPUTER EQUIPMENT (0.0%)
39,813 Memorex Telex NV (ADR) (Netherlands) (b)................................................ 29,860
---------------
ENTERTAINMENT/GAMING & LODGING (0.3%)
2,000 Motels of America, Inc. - 144A*......................................................... 170,000
4,000 Trump Taj Mahal (Class A)............................................................... 107,000
71,890 Vagabond Inns, Inc. (Class D) (c)....................................................... 125,807
---------------
402,807
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
FOODS & BEVERAGES (0.2%)
120,000 Specialty Foods Acquisition Corp. (Restricted) - 144A*.................................. $ 330,000
---------------
MANUFACTURING - DIVERSIFIED (1.0%)
84,072 Thermadyne Holdings Corp. (b)........................................................... 1,523,805
---------------
PUBLISHING (0.1%)
5,000 Affiliated Newspapers Investments, Inc. (Class B)....................................... 150,000
---------------
RESTAURANTS (0.1%)
7,750 American Restaurant Group Holdings, Inc. - 144A*........................................ 116,250
---------------
RETAIL (0.2%)
57,000 Thrifty Payless Holdings, Inc. (Class C)................................................ 277,875
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST $10,021,905)....................................... 2,830,597
---------------
PREFERRED STOCK (1.3%)
ENTERTAINMENT/GAMING & LODGING
80,000 Fitzgeralds Gaming Corp. (Units)+++ $3.75 (Identified Cost $2,000,000).................. 2,000,000
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE
- ---------- --------
<C> <S> <C> <C>
WARRANTS (A) (0.6%)
AEROSPACE (0.0%)
1,500 Sabreliner Corp. (Restricted) - 144A*............. 04/15/03 15,000
------------
CABLE & TELECOMMUNICATIONS (0.1%)
9,485 In-Flight Phone Corp. - 144A*..................... 08/31/02 94,850
------------
CONTAINERS (0.1%)
2,000 Crown Packaging Holdings, Ltd. (Canada) - 144A*... 11/01/03 110,000
------------
ENTERTAINMENT/GAMING & LODGING (0.1%)
1,000 Boomtown, Inc. - 144A*............................ 11/01/98 --
3,263 Casino America, Inc............................... 11/15/96 --
8,750 Fitzgeralds Gaming Corp. - 144A*.................. 03/15/99 87,500
------------
87,500
------------
MANUFACTURING (0.0%)
3,000 BPC Holdings Corp................................. 04/15/04 37,500
15,000 Uniroyal Technology Corp.......................... 06/01/03 37,500
------------
75,000
------------
OIL & GAS (0.0%)
4,140 Empire Gas Corp................................... 07/15/04 41,400
------------
RETAIL (0.3%)
2,000 County Seat Holdings Co........................... 10/15/98 45,000
132,000 New Cort Holdings Corp............................ 09/01/98 495,000
------------
540,000
------------
RETAIL - FOOD CHAINS (0.0%)
15,854 Grand Union Co. (Series 1) (b).................... 06/16/00 --
31,709 Grand Union Co. (Series 2) (b).................... 06/16/00 --
------------
--
------------
TOTAL WARRANTS (IDENTIFIED COST $976,985).................... 963,750
------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ---------- -------- ---------- ----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (6.5%)
U.S. GOVERNMENT AGENCY (E) (3.2%)
$5,000 Federal Home Loan Mortgage
Corp............................................... 5.53% 01/03/96 $ 4,998,464
-----------
REPURCHASE AGREEMENT (3.3%)
5,041 The Bank of New York (dated
12/29/95; proceeds $5,042,215;
collateralized by $5,344,097
U.S. Treasury Bill 5.31% due
09/19/96 valued at $5,141,346)
(Identified Cost
$5,040,535)........................................ 3.00 01/02/96 5,040,535
-----------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST
$10,038,999)....................................... 10,038,999
-----------
TOTAL INVESTMENTS (IDENTIFIED COST $170,007,688) (F)........... 98.1% 151,385,614
OTHER ASSETS IN EXCESS OF LIABILITIES.......................... 1.9 2,923,971
------ ----------
NET ASSETS..................................................... 100.0% $ 154,309,585
------ -------------
------ -------------
<FN>
- ----------------
ADR AMERICAN DEPOSITORY RECEIPT.
* RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
+++ CONSISTS OF ONE OR MORE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED STOCKS/WARRANTS.
+ PAYMENT-IN-KIND SECURITY.
++ CURRENTLY A ZERO COUPON BOND AND WILL PAY INTEREST AT THE RATE SHOWN AT A
FUTURE SPECIFIED DATE.
(A) NON-INCOME PRODUCING SECURITIES.
(B) ACQUIRED THROUGH EXCHANGE OFFER.
(C) NON-INCOME PRODUCING SECURITY, ISSUER IN BANKRUPTCY.
(D) NON-INCOME PRODUCING SECURITY, BOND IN DEFAULT.
(E) SECURITY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(F) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
CORPORATE BONDS (9.5%)
NATURAL GAS (1.3%)
$ 3,000 Coastal Corp. 7.75% due 10/15/35.... $ 3,132,750
3,000 Norsk Hydro AS
7.15% due 11/15/25 (Norway)....... 3,120,510
---------------
6,253,260
---------------
TELECOMMUNICATIONS (3.6%)
3,000 Alltel Corp. 6.75% due 09/15/05..... 3,124,650
1,400 Century Telephone Enterprises, Inc.
7.20% due 12/01/25................ 1,446,942
5,000 Century Telephone Enterprises, Inc.
8.25% due 05/01/24................ 5,530,850
2,000 Southwestern Bell Telephone Co.
7.20% due 10/15/26................ 2,080,600
2,000 Sprint Corp. 9.25% due 04/15/22..... 2,568,580
2,000 TCI Communications, Inc.
8.75% due 08/01/15................ 2,209,940
---------------
16,961,562
---------------
UTILITIES - ELECTRIC (4.6%)
5,000 Commonwealth Edison Company 8.375%
due 02/15/23...................... 5,367,900
2,000 Consumer Power Company 7.375% due
09/15/23.......................... 1,970,220
2,000 Florida Power & Light Co.
7.05% due 12/01/26................ 2,029,720
3,000 Illinois Power Co.
8.75% due 07/01/21................ 3,259,770
3,000 Indianapolis Power Co.
7.05% due 02/01/24................ 3,039,570
2,000 Long Island Lighting Co.
9.625% due 07/01/24............... 2,064,080
2,000 South Carolina Electric & Gas Co.
7.625% due 06/01/23............... 2,125,340
2,000 Union Electric Co.
8.00% due 12/15/22................ 2,201,300
---------------
22,057,900
---------------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $41,998,066)................. 45,272,722
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
U.S. GOVERNMENT AGENCY (0.3%)
1,250 Tennessee Valley Authority 8.00% due
03/31/45 (Identified Cost
$1,250,000)....................... 1,325,000
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
PREFERRED STOCKS (0.5%)
TELECOMMUNICATIONS (0.0%)
7,000 GTE Delaware Corp. (Series A)
$2.3125........................... 193,375
---------------
UTILITIES - ELECTRIC (0.5%)
40,000 Arizona Public Service Co. (Series
A) $2.50.......................... 1,110,000
2,207 Cleveland Electric Illuminating Co.
(Series N) $9.125................. 216,280
40,000 Connecticut Light & Power Capital
(Series A) $2.325................. 1,085,000
---------------
2,411,280
---------------
TOTAL PREFERRED STOCKS (IDENTIFIED
COST $2,400,114).................. 2,604,655
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (85.4%)
NATURAL GAS (11.5%)
90,000 Apache Corp......................... $ 2,655,000
120,000 Burlington Resources, Inc........... 4,710,000
70,000 Columbia Gas System, Inc.*.......... 3,071,250
150,000 El Paso Natural Gas Co.............. 4,256,250
170,000 ENSERCH Corp........................ 2,762,500
105,000 Louisiana Land & Exploration Co.
(The)............................. 4,501,875
130,000 Panhandle Eastern Corp.............. 3,623,750
130,000 Questar Corp........................ 4,355,000
200,000 Seagull Energy Corp.*............... 4,450,000
130,000 Tenneco, Inc........................ 6,451,250
50,000 UGI Corp............................ 1,037,500
145,000 Union Texas Petroleum Holdings,
Inc............................... 2,809,375
110,000 USX Delhi-Group..................... 1,141,250
215,000 Williams Companies, Inc............. 9,433,125
---------------
55,258,125
---------------
TELECOMMUNICATIONS (32.2%)
135,000 Airtouch Communications, Inc.*...... 3,813,750
230,000 Alltel Corp......................... 6,785,000
185,000 AT&T Corp........................... 11,978,750
165,000 BCE, Inc. (Canada).................. 5,692,500
290,000 Cable & Wireless PLC (ADR) (United
Kingdom).......................... 6,126,250
160,000 Century Telephone Enterprises,
Inc............................... 5,080,000
75,000 Cincinnati Bell, Inc................ 2,606,250
200,000 Comcast Corp. (Class A)............. 3,500,000
155,000 Comsat Corp......................... 2,886,875
330,000 Ericsson (L.M.) Telephone Co. AB
(ADR) (Sweden).................... 6,393,750
230,000 Frontier Corp....................... 6,900,000
175,000 GTE Corp............................ 7,700,000
61,250 Liberty Media Group (Class A)*...... 1,638,437
180,000 MCI Communications Corp............. 4,702,500
100,000 MFS Communications Co., Inc.*....... 5,325,000
50,000 Motorola, Inc....................... 2,850,000
120,000 Northern Telecom Ltd. (Canada)...... 5,160,000
140,000 NYNEX Corp.......................... 7,560,000
130,000 Pacific Telesis Group............... 4,371,250
130,000 SBC Communications, Inc............. 7,475,000
180,000 Southern New England
Telecommunications Corp........... 7,155,000
125,000 Sprint Corp......................... 4,984,375
65,000 Tele Danmark AS (ADR) (Denmark)..... 1,795,625
245,000 Tele-Communications, Inc. (Class
A)*............................... 4,869,375
80,000 Telecommunications Corp. New
Zealand, Ltd. (ADR) (New
Zealand).......................... 5,550,000
90,000 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR) (Mexico)......... 2,868,750
130,000 Telephone & Data Systems, Inc....... 5,135,000
110,000 Time Warner, Inc.................... 4,166,250
110,000 U.S. West, Inc...................... 3,932,500
110,000 U.S. West Media Group*.............. 2,090,000
85,000 WorldCom, Inc.*..................... 2,996,250
---------------
154,088,437
---------------
UTILITIES - ELECTRIC (41.7%)
220,000 Baltimore Gas & Electric Co......... 6,270,000
135,000 Carolina Power & Light Co........... 4,657,500
150,000 Central & South West Corp........... 4,181,250
235,865 CINergy Corp........................ 7,223,366
260,000 CMS Energy Corp..................... 7,767,500
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
130,000 Consolidated Edison Co.
of New York, Inc.................. $ 4,160,000
165,000 Detroit Edison Co................... 5,692,500
215,000 DPL, Inc............................ 5,321,250
202,500 DQE, Inc............................ 6,226,875
190,000 Entergy Corp........................ 5,557,500
140,000 FPL Group, Inc...................... 6,492,500
175,000 General Public Utilities Corp....... 5,950,000
125,000 Hawaiian Electric Industries, Inc... 4,843,750
200,000 Houston Industries, Inc............. 4,850,000
255,000 Illinova Corp....................... 7,650,000
150,000 IPALCO Enterprises, Inc............. 5,718,750
145,000 Kansas City Power & Light Co........ 3,788,125
90,000 Long Island Lighting Co............. 1,473,750
140,000 Montana Power Co.................... 3,167,500
110,000 New England Electric System......... 4,358,750
105,000 New York State Electric & Gas
Corp.............................. 2,716,875
210,000 Niagara Mohawk Power Corp........... 2,021,250
180,000 NIPSCO Industries, Inc.............. 6,885,000
100,000 Northeast Utilities................. 2,437,500
150,000 Pacific Gas & Electric Co........... 4,256,250
310,000 PacifiCorp.......................... 6,587,500
235,000 Pinnacle West Capital Corp.......... 6,756,250
105,000 Portland General Corp............... 3,058,125
100,000 Potomac Electric Power Company...... 2,625,000
205,000 Public Service Company of Colorado.. 7,251,875
240,000 Public Service Company of New
Mexico*........................... 4,230,000
145,000 Public Service Enterprise Group,
Inc............................... 4,440,625
95,000 Puget Sound Power & Light Company... 2,208,750
140,000 San Diego Gas & Electric Co......... 3,325,000
180,000 SCANA Corp.......................... 5,152,500
120,000 SCE Corp............................ 2,130,000
280,000 Southern Co......................... 6,895,000
140,000 Texas Utilities Co.................. 5,757,500
110,000 United Illuminating Co.............. 4,111,250
165,000 Western Resources, Inc.............. 5,506,875
205,000 Wisconsin Energy Corp............... 6,278,125
---------------
199,982,116
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$349,190,520)..................... 409,328,678
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (3.8%)
U.S. GOVERNMENT AGENCIES (A) (3.7%)
$ 17,950 Federal Home Loan Mortgage Corp.
5.53%-5.75% due 01/02/96-01/09/96... $ 17,935,807
---------------
REPURCHASE AGREEMENT (0.1%)
281 The Bank of New York 3.00% due
01/02/96 (dated 12/29/95; proceeds
$280,713; collateralized by $279,911
U.S. Treasury Note 5.75% due
09/30/97 valued at $286,231)
(Identified Cost $280,619).......... 280,619
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $18,216,426)..... 18,216,426
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $413,055,126) (B)......... 99.5% 476,747,481
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.5 2,322,664
---------- -------------
NET ASSETS....................... 100.0% $ 479,070,145
---------- -------------
---------- -------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN
HAVE BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (95.5%)
AEROSPACE (4.3%)
405,000 Raytheon Co....................... $ 19,136,250
191,500 United Technologies Corp.......... 18,168,562
---------------
37,304,812
---------------
ALUMINUM (2.2%)
356,000 Aluminum Co. of America........... 18,823,500
---------------
AUTO PARTS (2.2%)
243,000 TRW, Inc.......................... 18,832,500
---------------
AUTOMOTIVE (4.3%)
644,000 Ford Motor Co..................... 18,676,000
356,000 General Motors Corp............... 18,823,500
---------------
37,499,500
---------------
BANKS (4.2%)
276,100 BankAmerica Corp.................. 17,877,475
509,000 KeyCorp........................... 18,451,250
---------------
36,328,725
---------------
BEVERAGES - SOFT DRINKS (2.1%)
329,500 PepsiCo Inc....................... 18,410,812
---------------
CHEMICALS (6.3%)
259,300 Dow Chemical Co................... 18,248,237
294,000 Eastman Chemical Company.......... 18,411,750
304,500 Grace (W.R.) & Co................. 18,003,563
---------------
54,663,550
---------------
COMPUTERS (2.1%)
194,400 International Business Machines
Corp............................ 17,836,200
---------------
CONGLOMERATES (4.4%)
283,000 Minnesota Mining & Manufacturing
Co.............................. 18,748,750
382,500 Tenneco Inc....................... 18,981,563
---------------
37,730,313
---------------
COSMETICS (2.1%)
342,400 Gillette Co....................... 17,847,600
---------------
DRUGS (6.4%)
438,000 Abbott Laboratories............... 18,286,500
190,000 American Home Products Corp....... 18,430,000
219,200 Bristol-Myers Squibb Co........... 18,823,800
---------------
55,540,300
---------------
ELECTRIC - MAJOR (4.3%)
261,200 General Electric Co............... 18,806,400
1,134,000 Westinghouse Electric Corp........ 18,711,000
---------------
37,517,400
---------------
FINANCE (2.1%)
305,000 Household International, Inc...... 18,033,125
---------------
FOODS (4.1%)
520,400 Quaker Oats Company (The)......... 17,953,800
563,000 Sara Lee Corp..................... 17,945,625
---------------
35,899,425
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
INSURANCE (2.1%)
260,500 Aetna Life & Casualty Co.......... $ 18,039,625
---------------
METALS & MINING (2.1%)
292,000 Phelps Dodge Corp................. 18,177,000
---------------
NATURAL GAS (6.1%)
444,600 Burlington Resources, Inc......... 17,450,550
622,000 El Paso Natural Gas Co............ 17,649,250
650,000 Panhandle Eastern Corp............ 18,118,750
---------------
53,218,550
---------------
OFFICE EQUIPMENT (2.1%)
391,000 Pitney Bowes, Inc................. 18,377,000
---------------
OIL - DOMESTIC (2.0%)
158,000 Atlantic Richfield Co............. 17,498,500
---------------
OIL INTEGRATED - INTERNATIONAL (6.4%)
224,000 Exxon Corp........................ 17,948,000
166,500 Mobil Corp........................ 18,648,000
133,300 Royal Dutch Petroleum Co. (ADR)
(Netherlands)................... 18,811,963
---------------
55,407,963
---------------
PAPER & FOREST PRODUCTS (2.2%)
433,700 Weyerhaeuser Co................... 18,757,525
---------------
PHOTOGRAPHY (2.1%)
270,500 Eastman Kodak Co.................. 18,123,500
---------------
RAILROADS (2.1%)
232,500 Burlington Northern Santa Fe
Corp............................ 18,135,000
---------------
RETAIL - DEPARTMENT STORES (2.1%)
436,000 May Department Stores Co.......... 18,421,000
---------------
SOAP & HOUSEHOLD PRODUCTS (2.1%)
218,000 Procter & Gamble Co............... 18,094,000
---------------
TELECOMMUNICATIONS (2.2%)
536,000 U.S. West, Inc.................... 19,162,000
---------------
TELEPHONES (4.3%)
282,800 Bell Atlantic Corp................ 18,912,250
457,000 Sprint Corp....................... 18,222,875
---------------
37,135,125
---------------
TOBACCO (2.1%)
199,500 Philip Morris Companies, Inc...... 18,054,750
---------------
UTILITIES - ELECTRIC (4.4%)
410,500 FPL Group, Inc.................... 19,036,937
572,500 Unicom Corp....................... 18,749,375
---------------
37,786,312
---------------
TOTAL COMMON STOCKS (IDENTIFIED
COST $658,072,712).............. 826,655,612
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (3.9%)
$ 2,000 U.S. Treasury Bond
8.125% due 08/15/19............. $ 2,514,375
5,000 U.S. Treasury Bond
8.00% due 11/15/21.............. 6,253,906
5,000 U.S. Treasury Bond
7.125% due 02/15/23............. 5,717,969
14,000 U.S. Treasury Bond
6.25% due 08/15/23.............. 14,395,938
5,000 U.S. Treasury Note
6.375% due 01/15/99............. 5,154,687
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $30,172,969)... 34,036,875
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (0.6%)
U.S. GOVERNMENT AGENCY
$ 5,010 Federal Home Loan Mortgage Corp.
5.75% due 01/02/96 (Amortized Cost
$5,009,200)....................... $ 5,009,200
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $693,254,881) (B)......... 100.0% 865,701,687
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS................... -- (284,861)
---------- -------------
NET ASSETS....................... 100.0% $ 865,416,826
---------- -------------
---------- -------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
(A) SECURITY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (98.2%)
ADVERTISING (2.4%)
36,700 Interpublic Group of
Companies, Inc...................... $ 1,591,862
-------------
APPAREL (2.2%)
33,100 Cintas Corp........................... 1,472,950
-------------
AUTOMOTIVE - REPLACEMENT PARTS (2.2%)
35,300 Genuine Parts Co...................... 1,447,300
-------------
BANKING (2.2%)
20,100 Fifth Third Bancorp................... 1,457,250
-------------
BEVERAGES - ALCOHOLIC (2.2%)
21,700 Anheuser-Busch Companies, Inc......... 1,451,188
-------------
BEVERAGES - SOFT DRINKS (2.1%)
18,800 Coca Cola Co.......................... 1,395,900
-------------
BIOTECHNOLOGY (2.2%)
26,800 Medtronic Inc......................... 1,497,450
-------------
BUSINESS SYSTEMS (2.2%)
28,400 General Motors Corp. (Class E)........ 1,476,800
-------------
CHEMICALS - SPECIALTY (2.2%)
29,200 Sigma-Aldrich Corp.................... 1,445,400
-------------
COMPUTER SERVICES (2.2%)
20,000 Automatic Data Processing, Inc........ 1,485,000
-------------
COMPUTER SOFTWARE (4.2%)
24,950 Computer Associates
International, Inc.................. 1,419,031
16,100 Microsoft Corp.*...................... 1,412,775
-------------
2,831,806
-------------
CONSUMER SERVICES (2.1%)
34,500 Block (H.&R.), Inc.................... 1,397,250
-------------
COSMETICS (2.1%)
28,900 International Flavors &
Fragrances Inc...................... 1,387,200
-------------
DRUGS (4.3%)
32,600 Forest Laboratories, Inc.*............ 1,475,150
25,300 Schering-Plough Corp.................. 1,385,175
-------------
2,860,325
-------------
DRUGS & HEALTHCARE (2.2%)
35,500 Abbott Laboratories................... 1,482,125
-------------
ELECTRICAL EQUIPMENT (2.1%)
21,400 Grainger (W.W.), Inc.................. 1,417,750
-------------
ELECTRONICS (2.1%)
25,000 Dionex Corp.*......................... 1,418,750
-------------
ENTERTAINMENT (2.2%)
53,800 Circus Circus Enterprises, Inc.*...... 1,499,675
-------------
FINANCIAL - MISCELLANEOUS (2.3%)
12,500 Federal National Mortgage
Association......................... 1,551,562
-------------
FOOD WHOLESALERS (2.2%)
45,900 Sysco Corp............................ 1,491,750
-------------
FOODS (6.7%)
35,700 ConAgra, Inc.......................... 1,472,625
40,050 Tootsie Roll Industries, Inc.......... 1,586,981
28,100 Wrigley (Wm.) Jr. Co. (Class A)....... 1,475,250
-------------
4,534,856
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
GOLD MINING (2.1%)
54,200 Barrick Gold Corp. (Canada)........... $ 1,429,525
-------------
HEALTHCARE - MISCELLANEOUS (2.3%)
33,200 U.S. Healthcare, Inc.................. 1,539,649
-------------
INSURANCE (2.2%)
15,850 American International Group, Inc..... 1,466,125
-------------
MACHINERY - DIVERSIFIED (2.3%)
29,000 Thermo Electron Corp.*................ 1,508,000
-------------
MANUFACTURED HOUSING (2.1%)
67,250 Clayton Homes, Inc.................... 1,437,469
-------------
MANUFACTURING (4.6%)
61,301 Federal Signal Corp................... 1,586,163
42,800 Loral Corp............................ 1,514,050
-------------
3,100,213
-------------
MANUFACTURING - DIVERSIFIED (2.2%)
36,500 Sherwin-Williams Co................... 1,487,375
-------------
MEDICAL EQUIPMENT (4.2%)
78,900 Biomet, Inc.*......................... 1,400,475
26,500 Stryker Corp.......................... 1,387,938
-------------
2,788,413
-------------
PHARMACEUTICALS (2.1%)
16,800 Johnson & Johnson..................... 1,438,500
-------------
RESTAURANTS (6.4%)
94,900 Brinker International, Inc.*.......... 1,435,363
62,500 International Dairy Queen, Inc. (Class
A)*................................. 1,421,875
31,900 McDonald's Corp....................... 1,439,488
-------------
4,296,726
-------------
RETAIL - DEPARTMENT STORES (2.1%)
62,200 Wal-Mart Stores, Inc.................. 1,391,725
-------------
RETAIL - DRUG STORES (2.2%)
49,600 Walgreen Co........................... 1,481,800
-------------
RETAIL - FOOD CHAINS (2.2%)
43,900 Albertson's Inc....................... 1,443,213
-------------
RETAIL - SPECIALTY (2.3%)
31,900 Home Depot, Inc....................... 1,527,213
-------------
TOBACCO (2.1%)
42,300 UST, Inc.............................. 1,411,762
-------------
UTILITIES (2.2%)
56,401 Citizens Utilities Co. (Series A)*.... 719,112
57,417 Citizens Utilities Co. (Series B)*.... 724,892
-------------
1,444,004
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$51,576,527)........................ 65,785,861
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -------------
SHORT-TERM INVESTMENT (A) (2.0%)
U.S. GOVERNMENT AGENCY
<C> <S> <C>
$ 1,365 Federal Home Loan Mortgage Corp.
5.75% due 01/02/96 (Amortized Cost
$1,364,782).......................... $ 1,364,782
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$52,941,309)(B)................. 100.2% 67,150,643
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS.................... (0.2) (155,473)
---------- ------------
NET ASSETS........................ 100.0% $ 66,995,170
---------- ------------
---------- ------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
(A) SECURITY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (99.5%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
390,000 Pioneer International Ltd......... $ 1,004,825
---------------
MULTI-INDUSTRY
450,000 Southcorp Holdings Ltd............ 1,045,810
---------------
PAPER & FOREST PRODUCTS
135,000 Amcor Ltd......................... 952,254
---------------
TOTAL AUSTRALIA................... 3,002,889
---------------
CANADA (3.0%)
NATURAL GAS
108,000 TransCanada Pipelines Ltd......... 1,495,048
---------------
OIL RELATED
43,500 Imperial Oil Ltd.................. 1,575,220
64,300 IPL Energy, Inc................... 1,503,163
---------------
3,078,383
---------------
TELECOMMUNICATIONS
46,000 BCE, Inc.......................... 1,594,059
---------------
TOTAL CANADA...................... 6,167,490
---------------
FRANCE (7.6%)
BANKING
10,650 Societe Generale.................. 1,313,476
---------------
FINANCIAL SERVICES
3,850 Societe Eurafrance S.A............ 1,291,051
---------------
FOODS & BEVERAGES
7,700 Eridania Beghin-Say S.A........... 1,318,520
---------------
HOUSEHOLD PRODUCTS
12,700 BIC............................... 1,289,288
---------------
MULTI-INDUSTRY
6,600 Compagnie Generale d'Industrie et
de Participations............... 1,302,375
3,500 Financiere et Industrielle Gaz et
Eaux............................ 1,212,924
4,650 Saint-Louis....................... 1,232,290
26,461 Worms et Compagnie................ 1,248,746
---------------
4,996,335
---------------
OIL INTEGRATED - INTERNATIONAL
17,800 Societe National Elf Aquitaine.... 1,309,192
20,000 Total S.A. (B Shares)............. 1,347,467
---------------
2,656,659
---------------
TELECOMMUNICATIONS
15,200 Alcatel Alsthom................... 1,308,213
---------------
TELEVISION
13,000 Societe Television Francaise...... 1,391,295
---------------
TOTAL FRANCE...................... 15,564,837
---------------
GERMANY (6.3%)
BANKING
21,400 Deutsche Bank Aktiengesellschaft.. 1,011,867
---------------
BUILDING & CONSTRUCTION
2,650 Bilfinger & Berger Bau AG......... 1,001,009
---------------
CHEMICALS
4,650 BASF AG........................... 1,033,513
3,800 Bayer AG.......................... 1,000,557
---------------
2,034,070
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
HEALTH & PERSONAL CARE
28,000 Douglas Holding AG................ $ 985,600
---------------
MACHINERY - DIVERSIFIED
5,700 IWKA AG........................... 1,034,922
---------------
MULTI-INDUSTRY
3,450 Preussag AG....................... 962,400
2,700 RWE AG............................ 976,696
2,500 Viag AG........................... 1,000,000
---------------
2,939,096
---------------
OFFICE EQUIPMENT
6,100 Herlitz AG........................ 1,005,704
---------------
RETAIL - DEPARTMENT STORES
2,400 Karstadt AG....................... 976,696
---------------
TEXTILES - APPAREL
1,200 Hugo Boss AG (Pref.).............. 994,226
---------------
UTILITIES - ELECTRIC
24,300 Veba AG........................... 1,029,475
---------------
TOTAL GERMANY..................... 13,012,665
---------------
HONG KONG (4.0%)
BANKING
105,200 HSBC Holdings PLC................. 1,591,877
---------------
CONGLOMERATES
210,000 Swire Pacific Ltd. (Class A)...... 1,629,591
---------------
REAL ESTATE
277,000 Cheung Kong (Holdings) Ltd........ 1,687,364
---------------
TELECOMMUNICATIONS
940,000 Hong Kong Telecommunications,
Ltd............................. 1,677,703
---------------
UTILITIES - ELECTRIC
505,000 Hong Kong Electric Holdings Ltd... 1,655,684
---------------
TOTAL HONG KONG................... 8,242,219
---------------
ITALY (2.0%)
NATURAL GAS
350,000 Italgas SpA....................... 1,064,880
---------------
TELECOMMUNICATIONS
175,000 Sirti SpA......................... 983,307
900,000 Telecom Italia SpA................ 1,100,976
---------------
2,084,283
---------------
TEXTILES - APPAREL
87,000 Benetton Group SpA................ 1,035,232
---------------
TOTAL ITALY....................... 4,184,395
---------------
JAPAN (23.7%)
AUTOMOTIVE
127,000 Honda Motor Co.................... 2,617,417
128,000 Toyota Motor Corp................. 2,712,337
---------------
5,329,754
---------------
BUILDING MATERIALS
495,000 Sankyo Aluminium Industrial....... 2,648,621
170,000 Sekisui Chemical Co............... 2,500,242
---------------
5,148,863
---------------
COMPUTER SERVICES
285,000 AT&T Global Info Solutions........ 2,498,403
32,000 Nintendo Co., Ltd................. 2,430,576
---------------
4,928,979
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
ELECTRONICS & ELECTRICAL
260,000 Hitachi, Ltd...................... $ 2,616,352
34,000 Kyocera Corp...................... 2,523,270
162,000 Matsushita Electric
Industrial Co. Ltd.............. 2,633,382
240,000 Matsushita Electric Works......... 2,531,205
155,000 Sharp Corp........................ 2,474,601
45,500 Sony Corp......................... 2,725,157
50,000 TDK Corp.......................... 2,549,589
---------------
18,053,556
---------------
ENTERTAINMENT & LEISURE TIME
300,000 Mizuno Corp....................... 2,597,968
---------------
FOODS & BEVERAGES
143,000 House Food Industry............... 2,573,585
---------------
METALS & MINING
500,000 Furukawa Co., Ltd................. 2,472,182
---------------
PHARMACEUTICALS
130,000 Taisho Pharmaceutical Co., Ltd.... 2,566,038
160,000 Takeda Chemical Industries........ 2,631,834
---------------
5,197,872
---------------
TRANSPORTATION
215,000 Yamato Transport Co. Ltd.......... 2,558,781
---------------
TOTAL JAPAN....................... 48,861,540
---------------
MALAYSIA (2.0%)
BANKING
62,000 AMMB Holdings Berhad.............. 708,293
---------------
BUILDING & CONSTRUCTION
215,000 Cement Industries of Malaysia..... 707,209
108,000 United Engineers Malaysia
Berhad.......................... 689,226
---------------
1,396,435
---------------
CONGLOMERATES
253,000 Sime Darby Berhad................. 672,740
---------------
FOODS & BEVERAGES
90,000 Nestle Malaysia Berhad............ 659,445
---------------
OIL RELATED
239,000 Esso Malaysia Berhad.............. 630,806
---------------
TOTAL MALAYSIA.................... 4,067,719
---------------
NETHERLANDS (3.0%)
BANKING
19,000 ABN-AMRO Holdings................. 864,280
---------------
BUILDING & CONSTRUCTION
14,200 Koninklijke Volker Stevin NV...... 857,125
---------------
CHEMICALS
11,300 DSM NV............................ 928,188
---------------
FINANCIAL SERVICES
13,300 Internationale Nederlande Groep
NV.............................. 887,218
---------------
INSURANCE
20,700 Aegon NV.......................... 914,561
12,700 Fortis Amev NV.................... 849,564
---------------
1,764,125
---------------
TEXTILES
21,300 Gamma Holding NV.................. 967,579
---------------
TOTAL NETHERLANDS................. 6,268,515
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
SWITZERLAND (4.0%)
BANKING
5,100 Swiss Bank Corp................... $ 2,082,445
---------------
CHEMICALS
2,350 Ciba-Geigy Ltd.................... 2,057,651
---------------
FOODS & BEVERAGES
1,825 Nestle AG......................... 2,018,812
---------------
MULTI-INDUSTRY
1,725 BBC Brown Boveri AG............... 2,003,901
---------------
TOTAL SWITZERLAND................. 8,162,809
---------------
UNITED KINGDOM (12.1%)
BANKING
500,000 Hambros PLC....................... 1,581,000
310,960 Lloyds TSB Group PLC.............. 1,595,380
150,000 National Westminster Bank PLC..... 1,507,764
---------------
4,684,144
---------------
BREWERS
133,000 Bass PLC.......................... 1,481,188
158,000 Scottish & Newcastle
Breweries PLC................... 1,501,237
---------------
2,982,425
---------------
FOODS & BEVERAGES
1,000,000 Hazlewood Food PLC................ 1,557,750
630,000 Hillsdown Holdings PLC............ 1,660,050
---------------
3,217,800
---------------
MULTI-INDUSTRY
515,000 Hanson PLC........................ 1,536,632
---------------
NATURAL GAS
400,000 British Gas PLC................... 1,574,800
---------------
RETAIL - MERCHANDISING
325,000 Tesco PLC......................... 1,496,138
---------------
STEEL & IRON
640,000 British Steel PLC................. 1,614,480
---------------
TELECOMMUNICATIONS
275,000 British Telecommunications
PLC............................. 1,508,925
---------------
TOBACCO
175,000 B.A.T. Industries PLC............. 1,539,344
---------------
UTILITIES - ELECTRIC
272,000 Scottish Hydro-Electric PLC....... 1,515,652
---------------
UTILITIES - WATER
142,000 Severn Trent PLC.................. 1,513,188
130,000 Welsh Water PLC................... 1,560,618
121,500 Welsh Water PLC (Pref.)........... 205,274
---------------
3,279,080
---------------
TOTAL UNITED KINGDOM.............. 24,949,420
---------------
UNITED STATES (30.3%)
AEROSPACE & DEFENSE
53,500 Northrop Grumman Corp............. 3,424,000
---------------
AUTOMOTIVE
113,000 Ford Motor Co..................... 3,277,000
---------------
BANKING
52,500 BankAmerica Corp.................. 3,399,375
---------------
BANKS
92,500 KeyCorp........................... 3,353,125
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
CHEMICALS
27,300 Monsanto Co....................... $ 3,344,250
---------------
COMPUTERS - SYSTEMS
28,500 International Business Machines
Corp............................ 2,614,875
---------------
CONGLOMERATES
50,000 Minnesota Mining & Manufacturing
Co.............................. 3,312,500
69,500 Tenneco Inc....................... 3,448,938
---------------
6,761,438
---------------
MACHINERY - DIVERSIFIED
93,500 Deere & Co........................ 3,295,875
---------------
METALS & MINING
53,500 Phelps Dodge Corp................. 3,330,375
---------------
OIL INTEGRATED - INTERNATIONAL
64,000 Chevron Corp...................... 3,360,000
---------------
PAPER
60,000 International Paper Co............ 2,272,500
---------------
PHARMACEUTICALS
40,000 Bristol-Myers Squibb Co........... 3,435,000
---------------
RETAIL
44,500 Dayton-Hudson Corp................ 3,337,500
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS
82,500 Sprint Corp....................... $ 3,289,688
---------------
TIRE AND RUBBER GOODS
81,500 Goodyear Tire & Rubber Co......... 3,698,064
---------------
TOBACCO
37,000 Philip Morris Companies, Inc...... 3,348,500
---------------
TRANSPORTATION
48,500 Conrail, Inc...................... 3,395,000
---------------
UTILITIES - ELECTRIC
117,000 Pacific Gas & Electric Co......... 3,319,875
---------------
TOTAL UNITED STATES............... 62,256,440
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $184,452,332)(A).......... 99.5% 204,740,938
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 0.5 997,586
---------- -------------
NET ASSETS....................... 100.0% $ 205,738,524
---------- -------------
---------- -------------
<FN>
- ------------------
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $185,487,221; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $24,385,376 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $5,131,659, RESULTING IN NET UNREALIZED
APPRECIATION OF $19,253,717.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN EXCHANGE DELIVERY APPRECIATION/
RECEIVE FOR DATE (DEPRECIATION)
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
$ 32,181 MYR 81,797 01/02/96 $ (41)
$ 16,993 L 10,929 01/04/96 54
$ 82,302 Y 8,442,565 01/04/96 613
DEM 76,890 $ 53,705 01/04/96 (217)
Y 16,913,943 $ 164,022 01/05/96 (365)
$ 44,470 ITL 70,866,097 01/31/96 (170)
------
Net
unrealized depreciation .................... $ (126)
------
------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
SUMMARY OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Aerospace & Defense.......................... $ 3,424,000 1.7%
Automotive................................... 8,606,754 4.2
Banking...................................... 19,008,882 9.2
Brewers...................................... 2,982,425 1.4
Building & Construction...................... 4,259,394 2.1
Building Materials........................... 5,148,863 2.5
Chemicals.................................... 8,364,159 4.1
Computer Services............................ 4,928,979 2.4
Computers - Peripheral Equipment............. 2,614,875 1.3
Conglomerates................................ 9,063,769 4.4
Electronics & Electrical..................... 18,053,556 8.8
Entertainment................................ 2,597,968 1.3
Financial Services........................... 2,178,269 1.0
Foods & Beverages............................ 9,788,162 4.7
Health & Personal Care....................... 985,600 0.5
Household Products........................... 1,289,288 0.6
Insurance.................................... 1,764,125 0.8
Machinery - Diversified...................... 4,330,797 2.1
Metals & Mining.............................. 5,802,557 2.8
Multi-Industry............................... 12,521,774 6.1
Natural Gas.................................. 4,134,728 2.0
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Office Equipment............................. $ 1,005,704 0.5%
Oil.......................................... 3,709,189 1.8
Oil Integrated-International................. 6,016,659 2.9
Paper & Forest Products...................... 3,224,754 1.6
Pharmaceuticals.............................. 8,632,872 4.2
Real Estate.................................. 1,687,364 0.8
Retail....................................... 3,337,500 1.6
Retail - Department Stores................... 976,696 0.5
Retail - Merchandising....................... 1,496,138 0.7
Steel & Iron................................. 1,614,480 0.8
Telecommunications........................... 11,462,871 5.6
Television................................... 1,391,295 0.7
Textiles..................................... 967,579 0.5
Textiles - Apparel........................... 2,029,458 1.0
Tire & Rubber Goods.......................... 3,698,064 1.8
Tobacco...................................... 4,887,844 2.4
Transportation............................... 5,953,781 2.9
Utilities.................................... 3,279,080 1.6
Utilities - Electric......................... 7,520,686 3.6
------------ -----
$204,740,938 99.5%
------------ -----
------------ -----
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Common Stocks......................................................................... $ 203,541,438 98.9%
Preferred Stocks...................................................................... 1,199,500 0.6
-------------- -----
$ 204,740,938 99.5%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS AND BONDS
(93.4%)
AUSTRIA (1.2%)
ENGINEERING
17,555 VA Technologie AG............... $ 2,223,691
---------------
DENMARK (2.0%)
AIR TRANSPORT
14,700 Kobenhavns Lufthavne AS......... 1,120,000
---------------
BANKING
39,730 Den Danske Bank................. 2,734,338
---------------
TOTAL DENMARK................... 3,854,338
---------------
FINLAND (1.3%)
ELECTRONICS
62,400 Nokia AB (Series A)............. 2,447,508
---------------
FRANCE (12.4%)
BANKING
14,753 Societe Generale................ 1,819,502
---------------
ELECTRONICS
35,800 SGS-Thomson
Microelectronics NV........... 1,368,362
---------------
FINANCIAL SERVICES
10,200 Cetelem Groupe.................. 1,910,876
18,536 Credit Local de France.......... 1,481,217
---------------
3,392,093
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
13,535 LVMH Moet-Hennessy Louis
Vuitton....................... 2,814,331
54,500 SEITA........................... 1,972,021
---------------
4,786,352
---------------
INSURANCE
34,093 Scor S.A........................ 1,063,343
---------------
PHARMACEUTICALS
38,287 Sanofi S.A...................... 2,449,962
FRF 2K Sanofi S.A.
4.00% due 01/01/00 (Conv.
Pref.)........................ 163,172
---------------
2,613,134
---------------
RETAIL
3,200 Carrefour Supermarche........... 1,938,070
12,777 Castorama Dubois................ 2,088,911
---------------
4,026,981
---------------
TEXTILES
19,500 Christian Dior S.A.............. 2,098,869
3,500 Christian Dior S.A.
(Warrants due 06/30/98)*...... 42,131
11,500 Hermes International............ 2,156,763
---------------
4,297,763
---------------
TOTAL FRANCE.................... 23,367,530
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
GERMANY (6.3%)
AUTOMOTIVE
6,890 Volkswagen AG................... $ 2,298,744
---------------
BUSINESS SERVICES
20,650 Sap AG (Pref.).................. 3,117,252
---------------
CHEMICALS
9,865 Bayer AG........................ 2,597,497
---------------
HEALTH & PERSONAL CARE
5,220 Rhoen-Klinikum AG............... 515,645
12,780 Rhoen-Klinikum AG (Pref.)....... 1,111,304
---------------
1,626,949
---------------
MERCHANDISING
3,100 Gehe AG......................... 1,574,261
1,275 Gehe AG (New)................... 630,183
---------------
2,204,444
---------------
TOTAL GERMANY................... 11,844,886
---------------
ITALY (2.6%)
HOUSEHOLD FURNISHINGS & APPLIANCES
29,700 Industrie Natuzzi SpA (ADR)..... 1,347,637
---------------
TELECOMMUNICATIONS
286,000 Stet Societa' Finanziaria
Telefonica SpA................ 808,907
1,599,750 Telecom Italia SpA.............. 2,816,568
---------------
3,625,475
---------------
TOTAL ITALY..................... 4,973,112
---------------
NETHERLANDS (10.9%)
BUSINESS SERVICES
31,700 Randstad Holdings NV............ 1,436,067
---------------
INSURANCE
51,968 Aegon NV........................ 2,296,035
34,300 Internationale Nederlanden Groep
NV............................ 2,288,090
---------------
4,584,125
---------------
MANUFACTURING
22,550 ASM Lithography Holding NV*..... 778,796
---------------
MERCHANDISING
50,191 Koninklijke Ahold NV............ 2,045,744
---------------
MULTI-INDUSTRY
54,236 Hunter Douglas NV............... 2,510,988
---------------
PUBLISHING
241,000 Elsevier NV..................... 3,209,334
20,600 Ver Ned Uitgev NV............... 2,824,007
15,084 Wegener NV...................... 1,454,897
17,104 Wolters Kluwer.................. 1,615,673
---------------
9,103,911
---------------
TOTAL NETHERLANDS............... 20,459,631
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
NORWAY (1.1%)
OIL & GAS PRODUCTS
160,000 Saga Petroleum AS (B Shares).... $ 1,991,241
---------------
SPAIN (6.0%)
BANKS
97,150 Banco Bilbao Vizcaya............ 3,490,754
9,565 Banco Popular Espanol S.A....... 1,759,325
---------------
5,250,079
---------------
FINANCIAL SERVICES
25,660 Corporacion Financiera Hispamer
S.A........................... 1,576,058
---------------
OIL RELATED
19,445 Gas Natural SDG S.A............. 3,021,793
---------------
RETAIL
60,000 Centros Comerciales Continente
S.A........................... 1,351,751
---------------
TOTAL SPAIN..................... 11,199,681
---------------
SWEDEN (8.2%)
BANKING
40,000 Stadshypotek AB................. 800,964
---------------
BUSINESS SERVICES
90,000 Scribona AB (Series "B" Free)... 962,060
38,000 Securitas AB (Series "B" Free).. 1,802,168
---------------
2,764,228
---------------
FOREST PRODUCTS, PAPER & PACKAGING
25,661 Mo och Domsjoe AB (B Shares).... 1,093,355
121,000 Stora Kopparbergs (Series "B"
Free)......................... 1,448,284
---------------
2,541,639
---------------
HEALTH & PERSONAL CARE
35,000 Getinge Industrier AB (B
Shares)....................... 1,594,023
---------------
MACHINERY
100,000 Kalmar Industries AB............ 1,656,128
---------------
PHARMACEUTICALS
81,525 Astra AB (Series "A" Free)...... 3,252,654
---------------
TELECOMMUNICATIONS EQUIPMENT
140,750 Ericsson (L.M.) Telephone Co. AB
(Series "B" Free)............. 2,754,818
---------------
TOTAL SWEDEN.................... 15,364,454
---------------
SWITZERLAND (7.1%)
BUSINESS SERVICES
400 Societe Generale de Surveillance
Holdings S.A.................. 794,105
---------------
INDUSTRIALS
1,565 Hilti AG........................ 1,246,844
---------------
MULTI-INDUSTRY
2,835 BBC Brown Boveri AG............. 3,293,368
---------------
PHARMACEUTICALS
1,294 Ciba-Geigy AG................... 1,138,630
464 Roche Holdings AG............... 3,670,568
2,550 Sandoz AG....................... 2,334,460
1,000 Sandoz AG (Series B)............ 920,676
---------------
8,064,334
---------------
TOTAL SWITZERLAND............... 13,398,651
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
UNITED KINGDOM (34.3%)
AEROSPACE & DEFENSE
133,333 British Aerospace Capital PLC... $ 1,644,639
5,333 British Aerospace Capital PLC
(Warrants due 11/15/00)*...... 25,873
---------------
1,670,512
---------------
AUTOMOTIVE
405,000 BBA Group PLC................... 1,817,336
230,000 Rolls-Royce PLC................. 673,785
---------------
2,491,121
---------------
BANKING
200,000 Abbey National PLC.............. 1,971,600
100,000 National Westminster Bank PLC... 1,005,175
180,000 TSB Group PLC................... 923,490
---------------
3,900,265
---------------
BREWERS
145,000 Scottish & Newcastle Breweries
PLC........................... 1,377,717
---------------
BROADCAST MEDIA
185,000 British Sky Broadcasting Group
PLC........................... 1,165,639
130,000 Flextech PLC*................... 941,005
---------------
2,106,644
---------------
BUILDING & CONSTRUCTION
313,000 Blue Circle Industries PLC...... 1,661,639
116,400 Mowlem (John) & Co. PLC......... 106,448
288,300 Williams Holdings PLC........... 1,463,483
---------------
3,231,570
---------------
BUSINESS SERVICES
150,000 Reuters Holdings PLC............ 1,370,587
---------------
CHEMICALS
306,000 Albright & Wilson PLC........... 749,394
---------------
COMPUTER SOFTWARE & SERVICES
96,000 SEMA Group PLC.................. 796,080
---------------
CONGLOMERATES
200,000 BTR PLC......................... 1,019,900
250,000 Tomkins PLC..................... 1,090,812
---------------
2,110,712
---------------
CONSTRUCTION PLANT & EQUIPMENT
207,400 CRH PLC......................... 1,568,774
---------------
ELECTRONICS
715,000 Cray Electronics Holdings PLC... 454,383
---------------
FOOD PROCESSING
275,000 Associated British Foods PLC.... 1,568,600
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
94,261 B.A.T. Industries PLC........... 829,143
166,000 Grand Metropolitan PLC.......... 1,192,585
177,500 Tate & Lyle PLC................. 1,298,590
---------------
3,320,318
---------------
HEALTH & PERSONAL CARE
108,625 Reckitt & Colman PLC............ 1,199,627
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
INSURANCE
55,000 Britannic Assurance PLC......... $ 654,720
123,057 Commercial Union PLC............ 1,194,022
150,000 Lloyds Abbey Life PLC........... 1,041,600
261,200 Prudential Corp. PLC............ 1,678,145
273,000 Royal Insurance Holdings PLC.... 1,614,317
---------------
6,182,804
---------------
LEISURE
60,000 Carlton Communications PLC...... 897,915
190,000 Granada Group PLC............... 1,899,525
---------------
2,797,440
---------------
METALS & MINING
130,000 Smiths Industries PLC........... 1,281,540
---------------
MISCELLANEOUS
146,000 Vendome Luxury Group PLC
(Units)++..................... 1,328,381
---------------
NATURAL GAS
240,000 British Gas PLC................. 944,880
---------------
OIL RELATED
434,000 British Petroleum Co. PLC....... 3,622,490
591,000 Lasmo PLC....................... 1,593,927
---------------
5,216,417
---------------
PHARMACEUTICALS
254,100 Glaxo Wellcome PLC.............. 3,603,773
335,000 Medeva PLC...................... 1,401,975
150,700 SmithKline Beecham PLC
(Units)++..................... 1,639,767
---------------
6,645,515
---------------
REAL ESTATE
205,100 Hammerson PLC................... 1,120,615
---------------
RETAIL
74,000 Boots Co. PLC................... 671,569
100,000 Great Universal Stores PLC...... 1,060,975
247,000 Morrison (W.M.) Supermarkets
PLC........................... 535,990
274,000 Next PLC........................ 1,936,632
---------------
4,205,166
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS
654,700 British Telecommunications PLC.. $ 3,592,339
56,000 Securicor Group PLC............. 759,500
---------------
4,351,839
---------------
TRANSPORTATION
140,500 British Airways PLC............. 1,014,832
---------------
UTILITIES
200,000 Scottish Power PLC.............. 1,147,000
45,000 Thames Water PLC................ 391,646
---------------
1,538,646
---------------
TOTAL UNITED KINGDOM............ 64,544,379
---------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS AND BONDS
(IDENTIFIED COST
$142,939,710)................... 175,669,102
---------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY
AMOUNT (IN
THOUSANDS)
- ---------------
<C> <S> <C>
PURCHASED PUT OPTION ON
FOREIGN CURRENCY (0.2%)
FRF 17,500 May 16, 1996/FRF 4.86
(Identified Cost $484,750).... 458,500
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (5.2%)
U.S. GOVERNMENT AGENCY
$ 9,800 Federal Home Loan Mortgage......
Corp. 5.75% due 01/02/96 .....
(Amortized Cost $9,798,435)..... 9,798,435
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $153,222,895) (B)......... 98.8% 185,926,037
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 1.2 2,193,372
---------- -------------
NET ASSETS....................... 100.0% $ 188,119,409
---------- -------------
---------- -------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
K IN THOUSANDS.
* NON-INCOME PRODUCING SECURITY.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED STOCKS/WARRANTS.
(A) SECURITY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $153,973,857; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $34,896,692 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $2,944,512, RESULTING IN NET UNREALIZED
APPRECIATION OF $31,952,180.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN EXCHANGE DELIVERY APPRECIATION/
RECEIVE FOR DATE (DEPRECIATION)
- --------------- ------------ ---------- -----------------
<C> <S> <C> <C>
$ 579,897 ATS 5,897,554 01/02/96 $(3,730)
$ 65,521 DEM 93,931 01/02/96 178
$ 370,662 L 238,698 01/02/96 680
-------
Net unrealized
depreciation .............. $(2,872)
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
SUMMARY OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Aerospace & Defense.......................... $ 1,670,512 0.9%
Air Transport................................ 1,120,000 0.6
Automotive................................... 4,789,865 2.6
Banking...................................... 9,255,069 4.9
Banks........................................ 5,250,079 2.8
Brewers...................................... 1,377,717 0.7
Broadcast Media.............................. 2,106,644 1.1
Building & Construction...................... 3,231,570 1.7
Business Services............................ 9,482,239 5.1
Chemicals.................................... 3,346,891 1.8
Computer Software & Services................. 796,080 0.4
Conglomerates................................ 2,110,712 1.1
Construction Plant & Equipment............... 1,568,774 0.8
Electronics.................................. 4,270,253 2.3
Engineering.................................. 2,223,691 1.2
Financial Services........................... 4,968,151 2.6
Food Processing.............................. 1,568,600 0.8
Food, Beverage, Tobacco & Household
Products.................................... 8,106,670 4.3
Foreign Currency Put Option.................. 458,500 0.2
Forest Products, Paper & Packaging........... 2,541,639 1.4
Health & Personal Care....................... 4,420,599 2.3
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Household Furnishings & Appliances........... $ 1,347,637 0.7%
Industrials.................................. 1,246,844 0.7
Insurance.................................... 11,830,272 6.3
Leisure...................................... 2,797,440 1.5
Machinery.................................... 1,656,128 0.9
Manufacturing................................ 778,796 0.4
Merchandising................................ 4,250,188 2.3
Metals & Mining.............................. 1,281,540 0.7
Miscellaneous................................ 1,328,381 0.7
Multi-Industry............................... 5,804,356 3.1
Natural Gas.................................. 944,880 0.5
Oil & Gas Products........................... 1,991,241 1.1
Oil Related.................................. 8,238,210 4.4
Pharmaceuticals.............................. 20,575,637 10.9
Publishing................................... 9,103,911 4.8
Real Estate.................................. 1,120,615 0.6
Retail....................................... 9,583,898 5.1
Telecommunications........................... 7,977,314 4.2
Telecommunications Equipment................. 2,754,818 1.5
Textiles..................................... 4,297,763 2.3
Transportation............................... 1,014,832 0.5
U.S. Government Agency....................... 9,798,435 5.2
Utilities.................................... 1,538,646 0.8
------------ -----
$185,926,037 98.8%
------------ -----
------------ -----
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Common Stocks......................................................................... $ 171,209,370 91.0%
Convertible Preferred Stocks.......................................................... 163,172 0.1
Foreign Currency Put Option........................................................... 458,500 0.2
Preferred Stocks...................................................................... 4,228,556 2.3
Short-Term Investment................................................................. 9,798,435 5.2
Warrants.............................................................................. 68,004 0.0
-------------- -----
$ 185,926,037 98.8%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS, RIGHTS
AND BONDS (95.9%)
AUSTRALIA (1.0%)
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
99,000 Fosters Brewing Group Ltd.
(New).......................... $ 162,452
-------------
METALS & MINING
200,000 M.I.M. Holdings, Ltd............. 276,210
38,750 Odin Mining & Investment
Co., Ltd....................... 8,056
-------------
284,266
-------------
OIL RELATED
50,000 Santos, Ltd...................... 145,901
50,000 Woodside Petroleum Ltd........... 255,420
-------------
401,321
-------------
TRANSPORTATION
14,500 Brambles Industries, Ltd......... 161,494
-------------
TOTAL AUSTRALIA.................. 1,009,533
-------------
CHINA (0.9%)
CHEMICALS
16,500 Jilin Chemical Industrial Co.,
Ltd. (ADR)..................... 354,750
1,000,000 Yizheng Chemical Fibre Co. Ltd... 225,039
-------------
579,789
-------------
TRANSPORTATION
160,000 Jinhui Shipping and
Transportation Ltd............. 138,631
-------------
UTILITIES
24,000 Shandong Huaneng Power Co., Ltd.
(ADR).......................... 162,000
-------------
TOTAL CHINA...................... 880,420
-------------
HONG KONG (20.8%)
BANKING
75,000 Guoco Group Ltd.................. 361,808
100,000 Hang Seng Bank Ltd............... 895,629
44,800 HSBC Holdings PLC................ 677,910
750,000 International Bank of Asia....... 356,473
-------------
2,291,820
-------------
BUSINESS SERVICES
350,000 First Pacific Co. Ltd............ 389,291
-------------
CONGLOMERATES
76,000 Citic Pacific, Ltd............... 259,984
500,000 Hutchison Whampoa, Ltd........... 3,045,783
70,200 Jardine Matheson Holdings Ltd.... 480,870
170 New World Infrastructure Ltd..... 325
90,000 Swire Pacific Ltd. (Class A)..... 698,396
-------------
4,485,358
-------------
FINANCIAL SERVICES
600,000 Manhattan Card Co. Ltd........... 256,079
-------------
INSURANCE
389,000 National Mutual Asia Ltd......... 352,173
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
LEISURE
1,500,000 CDL Hotels International, Ltd.... $ 756,596
870,000 Regal Hotels International....... 204,785
-------------
961,381
-------------
MULTI-INDUSTRY
75,000 Jardine Strategic Holdings Ltd... 229,500
-------------
OIL RELATED
395,000 Hong Kong & China Gas Co......... 636,026
-------------
REAL ESTATE
420,000 Cheung Kong (Holdings) Ltd....... 2,558,457
100,000 Great Eagle Holding Co........... 258,665
60,000 Henderson Land Development Co.
Ltd............................ 361,614
380,000 Hong Kong Land Holdings Ltd...... 703,000
102,000 New World Development............ 444,568
285,000 Sun Hung Kai Properties, Ltd..... 2,331,382
80,000 Wharf (Holdings) Ltd............. 266,425
-------------
6,924,111
-------------
RETAIL - SPECIALTY
240,000 Giordano International Ltd....... 204,863
-------------
TELECOMMUNICATIONS
875,600 Hong Kong
Telecommunications, Ltd........ 1,562,763
-------------
TRANSPORTATION
280,000 Cathay Pacific Airways........... 427,315
-------------
UTILITIES
140,500 China Light & Power Co. Ltd...... 646,896
150,000 Consolidated Electric Power Asia
Ltd............................ 272,569
230,000 Hong Kong Electric Holdings
Ltd............................ 754,074
-------------
1,673,539
-------------
TOTAL HONG KONG.................. 20,394,219
-------------
INDONESIA (8.4%)
AUTOMOTIVE
330,000 PT Astra International........... 686,296
-------------
BUILDING & CONSTRUCTION
127,000 PT Indocement.................... 426,762
-------------
BUILDING MATERIALS
327,800 PT Mulia Industrindo............. 925,705
250,000 PT Semen Gresik.................. 700,525
-------------
1,626,230
-------------
CONGLOMERATES
10,000 PT Citra Marga Nusaphala
Persada........................ 9,413
-------------
CONSTRUCTION EQUIPMENT
140,000 PT United Tractors............... 263,573
-------------
FINANCIAL SERVICES
500,000 Peregrine Indonesia* (Restricted)
-- 144A**...................... 515,000
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
30,000 PT Gudang Garam.................. 313,923
120,000 PT Hanjaya Mandala Sampoerna..... 1,250,438
121,775 PT Indofood Sukses Makmur........ 586,482
-------------
2,150,843
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
FOREST PRODUCTS, PAPER & PACKAGING
20,000 Asia Pacific Resources
International Holdings Ltd.
(Class A) (ADR)*............... $ 95,000
6,020 PT Indah Kiat Pulp Paper Corp.... 4,415
310,000 PT Inti Indorayon Utama.......... 325,744
206,144 PT Pabrikkertas Tjiwi Kimia...... 194,050
-------------
619,209
-------------
METALS
200,000 PT Tambang Timah................. 247,373
21,000 PT Tambang Timah (GDR)........... 256,935
-------------
504,308
-------------
PHARMACEUTICALS
90,000 PT Tempo Scan Pacific............ 244,308
-------------
PHOTOGRAPHY
75,000 PT Modern Photo & Film Co........ 435,092
-------------
TELECOMMUNICATIONS
95,000 PT Indosat....................... 345,228
320,000 PT Telekomunikasi Indonesia...... 420,315
-------------
765,543
-------------
TOTAL INDONESIA.................. 8,246,577
-------------
JAPAN (15.6%)
AGRICULTURE
3,900 Yukiguni Maitake Co., Ltd........ 59,245
-------------
AUTO RELATED
6,000 Mitsuba Electric Mfg Co.......... 62,119
-------------
AUTOMOTIVE
1,000 Autobacs Seven Co................ 83,019
11,000 Honda Motor Co................... 226,705
-------------
309,724
-------------
BANKING
15,000 Asahi Bank, Ltd.................. 188,679
8,000 Bank of Tokyo.................... 140,106
8,000 Dai-Ichi Kangyo Bank............. 157,136
14,000 Mitsui Trust & Banking........... 153,072
11,000 Sanwa Bank, Ltd.................. 223,512
15,000 Shizuoka Bank.................... 188,679
10,000 Sumitomo Bank.................... 211,901
14,000 Sumitomo Trust & Banking......... 197,775
-------------
1,460,860
-------------
BANKS - COMMERCIAL
9,000 Mitsubishi Bank.................. 211,611
-------------
BUILDING & CONSTRUCTION
3,000 Higashi Nihon House.............. 49,347
2,000 Japan Industrial Land
Development.................... 76,826
15,000 Kajima Corp...................... 148,041
4,000 Kaneshita Construction........... 53,798
9,000 Maeda Road Construction.......... 166,328
5,000 Mitsui Home Co., Ltd............. 79,826
6,000 Raito Kogyo Co................... 117,852
7,000 Sumitomo Forestry Co., Ltd....... 107,015
-------------
799,033
-------------
BUILDING MATERIALS
4,000 Oriental Construction Co......... 85,148
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
BUSINESS SERVICES
5,000 Ichiken Co., Ltd................. $ 52,733
2,000 Nippon Kanzai.................... 61,732
1,500 Nissin Co., Ltd.................. 71,118
3,000 Secom............................ 208,418
4,000 Tanseisha........................ 46,444
-------------
440,445
-------------
CHEMICALS
2,000 Maezawa Kasei Industries......... 79,923
37,000 Mitsubishi Chemical Corp......... 179,719
9,000 Shin-Etsu Chemical Co............ 186,357
1,000 SK Kaken Co., Ltd................ 21,190
-------------
467,189
-------------
COMMERCIAL SERVICES
2,000 Nichii Gakkan Co................. 93,662
-------------
COMPUTER SOFTWARE & SERVICES
1,500 Enix Corp........................ 57,329
3 NTT Data Communications Systems
Corp........................... 100,726
-------------
158,055
-------------
COMPUTERS
16,000 Fujitsu, Ltd..................... 178,036
1,000 I-O Data Device, Inc............. 69,182
3,000 Japan Digital Laboratory......... 67,634
1,000 Mars Engineering Corp............ 74,407
2,300 TKC Corp......................... 65,206
-------------
454,465
-------------
COMPUTERS - SYSTEMS
3,000 Daiwabo Information Systems
Co............................. 78,084
-------------
DATA PROCESSING
4,000 Ricoh Elemex..................... 57,668
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
5,000 Aiwa Co.......................... 117,078
5,000 Alpine Electronics Inc........... 84,180
3,000 Canon, Inc....................... 54,282
Y 9,000K Canon, Inc. 1.00% due 12/20/02
(Conv.)........................ 111,466
15,000 Hitachi, Ltd..................... 150,943
3,000 Kyocera Corp..................... 222,642
1,500 Mabuchi Motor Co................. 93,179
3,000 Mitsui High-Tec.................. 78,374
5,000 Mitsumi Electric Co. Ltd......... 120,464
3,000 Murata Manufacturing Co., Ltd.... 110,305
2,000 Nihon Dempa Kogyo................ 44,702
5,000 Nitto Electric Works............. 71,601
8,000 Omron Corp....................... 184,228
12,000 Sharp Corp....................... 191,582
3,100 Sony Corp........................ 185,670
4,000 Tokin Corp....................... 65,022
-------------
1,885,718
-------------
ELECTRONICS
2,000 Fujitsu Business Systems......... 52,637
3,000 Ryoyo Electro Corp............... 68,505
-------------
121,142
-------------
ENTERTAINMENT
2,200 H.I.S. Co. Ltd................... 104,944
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
FINANCIAL SERVICES
15,000 Daiwa Securities Co., Ltd........ $ 229,318
3,000 Nichiei Co., Ltd. (Kyoto)........ 223,512
10,000 Nomura Securities Co., Ltd....... 217,707
3,700 Promise Co., Ltd................. 177,929
1,000 Sanyo Shinpan Finance Co., Ltd... 82,245
2,000 Shinki Co. Ltd................... 75,472
-------------
1,006,183
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
4,200 Amway Japan, Ltd................. 177,184
9,000 Nippon Meat Packers, Inc......... 130,624
1,000 Plenus Co., Ltd.................. 48,379
4,000 Stamina Foods.................... 54,572
4 Yoshinoya D & C Co., Ltd......... 69,666
-------------
480,425
-------------
FOREST PRODUCTS, PAPER & PACKAGING
8,000 Daishowa Paper Manufacturing Co.
Ltd............................ 61,926
10,000 New Oji Paper Co., Ltd........... 90,373
25,000 Nippon Paper Industries Co....... 173,440
-------------
325,739
-------------
HEALTH & PERSONAL CARE
3,000 Kawasumi Laboratories, Inc....... 35,414
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
4,000 Juken Sangyo Co.................. 44,896
-------------
INDUSTRIALS
10,000 Nippon Thompson Co............... 88,050
-------------
INSURANCE
15,000 Tokio Marine & Fire Insurance
Co............................. 195,936
18,000 Yasuda Fire & Marine Insurance... 127,141
-------------
323,077
-------------
LEISURE
2,000 Honma Golf Co. Ltd............... 45,670
-------------
MACHINE TOOLS
2,000 Nitto Kohki Co. Ltd.............. 76,439
10,000 OSG Corporation.................. 68,505
-------------
144,944
-------------
MACHINERY
8,000 Aichi Corp....................... 70,905
4,000 Fanuc, Ltd....................... 173,004
2,000 Fuji Machine Manufacturing Co.... 71,601
1,700 Keyence Corp..................... 195,743
Y 19,000K Minebea Co., Ltd. 0.80% due
03/31/03 (Conv.)............... 201,122
24,000 Mitsubishi Heavy Industries,
Ltd............................ 191,118
4,000 Sansei Yusoki Co., Ltd........... 55,346
8,000 Sintokogio....................... 69,666
-------------
1,028,505
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
MANUFACTURING
3,000 Arcland Sakamoto................. $ 38,316
7,000 Bridgestone Metalpha Corp........ 79,245
9,000 Daiwa House Industry............. 148,041
8,000 Itoki Crebio Corp................ 61,926
1,000 KDD.............................. 87,083
4,000 Nichiha Corp..................... 90,566
7,000 Nippon Electric Glass Co., Ltd... 132,753
3,000 Sony Music Entertainment Inc..... 156,749
9,000 Takara Standard Co............... 102,758
4,000 Tokyo Style...................... 68,505
-------------
965,942
-------------
MEDICAL SUPPLIES
800 Paramount Bed Co................. 55,733
-------------
MERCHANDISING
2,000 Misumi Corp...................... 74,891
-------------
METALS
6,000 Takada Kiko...................... 65,022
3,600 Tokyo Steel Manufacturing........ 66,183
-------------
131,205
-------------
METALS & MINING
12,000 Kawasaki Steel Corp.............. 41,800
23,000 Nippon Light Metal Co............ 131,746
40,000 Nippon Steel Co.................. 137,010
-------------
310,556
-------------
MULTI-INDUSTRY
21,000 Mitsui & Co...................... 184,093
3,000 Trusco Nakayama Corp............. 62,409
5,000 Yamae Hisano..................... 48,380
-------------
294,882
-------------
NATURAL GAS
44,000 Tokyo Gas Co., Ltd............... 154,969
-------------
OIL RELATED
16,000 General Sekiyu................... 145,989
-------------
PHARMACEUTICALS
10,000 Eisai Co. Ltd.................... 175,133
2,000 Ono Pharmaceutical Co............ 76,826
2,000 Santen Pharmaceutical Co......... 45,283
1,000 Towa Pharmaceutical Co., Ltd..... 36,768
-------------
334,010
-------------
REAL ESTATE
7,000 Cesar Co......................... 54,794
5,000 Chubu Sekiwa Real Estate, Ltd.... 77,407
4,000 Fuso Lexel, Inc.................. 34,833
5,000 Kansai Sekiwa Real Estate........ 89,502
15,000 Mitsui Fudosan Co................ 184,325
5,000 Sekiwa Real Estate............... 42,574
5,000 Tohoku Misawa Homes Co., Ltd..... 62,893
-------------
546,328
-------------
RETAIL
2,000 Belluna Co., Ltd................. 37,736
1,200 Fast Retailing Co., Ltd.......... 59,565
3,000 Ministop Co., Ltd................ 86,212
4,000 Shimachu Co., Ltd................ 128,108
1,000 Sundrug Co., Ltd................. 44,509
2,000 Xebio Co. Ltd.................... 70,634
-------------
426,764
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
RETAIL - GENERAL MERCHANDISE
2,000 Circle K Japan Co. Ltd........... $ 88,050
1,000 Ryohin Keikaku Co. Ltd........... 83,212
-------------
171,262
-------------
RETAIL - SPECIALTY
2,000 Paris Miki Inc................... 71,795
-------------
TELECOMMUNICATIONS
24 DDI Corp......................... 185,776
10,000 Nippon Comsys Co................. 105,467
-------------
291,243
-------------
TEXTILES
3,000 Chuo Warehouse................... 35,994
15,000 Kuraray Co. Ltd.................. 164,006
1,600 Maruco Co., Ltd.................. 108,524
2,000 Yagi Corp........................ 23,996
-------------
332,520
-------------
TRANSPORTATION
28 East Japan Railway Co............ 136,004
17,000 Fukuyama Transporting Co......... 159,555
16,000 Kamigumi Co. Ltd................. 153,420
-------------
448,979
-------------
UTILITIES
4,386 Hokkaido Electric Power.......... 101,852
-------------
WHOLESALE & INTERNATIONAL TRADE
2,000 Satori Electric Co. Ltd.......... 96,759
-------------
WHOLESALE DISTRIBUTOR
4,000 Wakita & Co...................... 56,120
-------------
TOTAL JAPAN...................... 15,383,814
-------------
MALAYSIA (14.1%)
AGRICULTURE
245,000 Highlands & Lowlands Berhad...... 393,776
-------------
AUTOMOTIVE
98,000 Cycle & Carriage Bintang
Berhad......................... 555,919
67,000 Edaran Otomobil Nasional
Berhad......................... 504,117
-------------
1,060,036
-------------
BANKING
83,000 Malayan Banking Berhad........... 699,705
222,000 Public Bank Berhad............... 427,104
-------------
1,126,809
-------------
BANKS - COMMERCIAL
75,000 DCB Holdings Berhad.............. 218,633
37,500 DCB Holdings Berhad (Warrants due
12/27/99)*..................... 37,227
210,000 Kwong Yik Bank................... 450,857
-------------
706,717
-------------
BUILDING & CONSTRUCTION
32,000 Hume Industries (Malaysia)
Berhad......................... 153,792
120,000 Kedah Cement Berhad.............. 206,106
100,000 Metacorp Berhad.................. 259,996
40,000 Nam Fatt Berhad.................. 107,938
135,000 United Engineers Malaysia
Berhad......................... 861,532
-------------
1,589,364
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
BUSINESS SERVICES
10,000 Dunlop Estates Berhad............ $ 18,594
-------------
CONGLOMERATES
125,000 Renong Berhad.................... 185,149
-------------
CONSTRUCTION PLANT & EQUIPMENT
33,000 YTL Corp. Berhad................. 207,997
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
39,666 Leader Universal Holdings
Berhad......................... 90,629
-------------
ENTERTAINMENT
80,000 Genting Berhad................... 668,111
80,000 Resorts World Berhad............. 428,600
-------------
1,096,711
-------------
FINANCIAL SERVICES
186,000 Affin Holdings Berhad............ 359,031
60,000 Hong Leong Credit Berhad......... 297,814
150,000 Public Finance Berhad............ 324,995
50,000 Rashid Hussain Berhad............ 149,695
-------------
1,131,535
-------------
GAS
45,000 Petronas Gas Berhad.............. 153,339
-------------
INSURANCE
80,000 Pacific & Orient Berhad.......... 252,117
-------------
MANUFACTURING
31,250 O.Y.L. Industries Berhad......... 242,515
-------------
MULTI-INDUSTRY
180,000 Multi-Purpose Holdings Berhad.... 263,778
150,000 Nylex Berhad..................... 454,993
-------------
718,771
-------------
PLANTATION
125,000 Kuala Lumpur Kepong Berhad....... 396,396
-------------
REAL ESTATE
100,000 IOI Properties Berhad............ 250,148
187,500 Land & General Berhad............ 406,244
225,000 Pelangi Berhad................... 218,042
-------------
874,434
-------------
TELECOMMUNICATIONS
265,000 Technology Resources Industries
Berhad*........................ 782,943
185,000 Telekom Malaysia Berhad.......... 1,442,978
-------------
2,225,921
-------------
TRANSPORTATION
90,000 Malaysian Airline System Berhad.. 292,496
-------------
UTILITIES
60,000 Malakoff Berhad.................. 213,906
24,000 Prime Utilities Berhad........... 204,215
161,000 Tenaga Nasional Berhad........... 634,233
-------------
1,052,354
-------------
TOTAL MALAYSIA................... 13,815,660
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
PAKISTAN (0.1%)
TELECOMMUNICATIONS
1,100 Pakistan Telecommunications Corp.
(GDS)*......................... $ 93,500
-------------
PHILIPPINES (2.3%)
BANKING
780 Philippine National Bank......... 8,630
-------------
BUILDING & CONSTRUCTION
37,638 Bacnotan Consolidated
Industries..................... 215,403
3,763 Bacnotan Consolidated
Industries (Nil Paid).......... 7,179
-------------
222,582
-------------
CONGLOMERATES
540,000 Abolitz Equity Ventures Inc.*.... 103,014
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
46,500 San Miguel Corp. (B Shares)...... 158,785
-------------
FOREST PRODUCTS, PAPER & PACKAGING
525,000 Paper Industries Corp............ 126,192
-------------
REAL ESTATE
3,000,000 Belle Corp.*..................... 412,056
658,000 Filinvest Land, Inc.*............ 210,881
-------------
622,937
-------------
TELECOMMUNICATIONS
344,000 Pilipino Telephone Corp.......... 347,806
-------------
UTILITIES
25,500 Manila Electric Co. (B Shares)... 208,203
1,300 Philippine Long Distance
Telephone Co................... 70,679
6,650 Philippine Long Distance
Telephone Co. (ADR)............ 359,931
-------------
638,813
-------------
TOTAL PHILIPPINES................ 2,228,759
-------------
SINGAPORE (13.3%)
AUTOMOTIVE
25,000 Cycle and Carriage Ltd........... 249,328
-------------
BANKING
93,000 Development Bank of Singapore,
Ltd............................ 1,157,731
115,000 Overseas Chinese Banking Corp.,
Ltd............................ 1,439,737
77,000 Overseas Union Bank, Ltd......... 531,016
153,000 United Overseas Bank, Ltd........ 1,471,778
-------------
4,600,262
-------------
CONGLOMERATES
65,000 Keppel Corp., Ltd................ 579,290
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
110,000 Venture Manufacturing, Ltd....... 368,793
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
38,000 Fraser & Neave Ltd............... 483,803
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
HOTELS
210,000 Republic Hotels & Resorts Ltd.... $ 262,908
56,000 Republic Hotels & Resorts Ltd.
(Warrants due 07/12/00)*....... 28,915
-------------
291,823
-------------
MACHINERY
50,000 Van Der Horst Ltd................ 252,865
-------------
METALS
420,000 Amtek Engineering, Ltd........... 608,997
-------------
PUBLISHING
30,200 Singapore Press Holdings......... 534,022
-------------
REAL ESTATE
15,000 Bukit Sembawang Estates Ltd...... 328,901
134,000 City Developments, Ltd........... 976,234
240,000 DBS Land Ltd..................... 811,430
270,000 United Overseas Land, Ltd........ 513,722
-------------
2,630,287
-------------
SHIPBUILDING
80,000 Far East Levingston Shipbuilding
Ltd............................ 376,291
66,000 Sembawang Maritime............... 366,459
-------------
742,750
-------------
STEEL & IRON
200,000 Natsteel Ltd..................... 410,242
-------------
TRANSPORTATION
145,000 Singapore Airlines Ltd........... 1,353,798
-------------
TOTAL SINGAPORE.................. 13,106,260
-------------
SOUTH KOREA (6.9%)
AUTOMOTIVE
25,000 Hyundai Motor Co., Ltd. (GDR).... 362,500
30,000 Kai Motors Corp.
(GDS) - 144A* **............... 675,000
-------------
1,037,500
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
3,562 Samsung Electronics Co........... 213,720
8,000 Samsung Electronics Co.
(GDS).......................... 772,000
11,000 Samsung Electronics Co. (GDS) -
144A**......................... 660,000
-------------
1,645,720
-------------
ELECTRONICS
$ 315K Daewoo Electronics Co.
3.50% due 12/31/07 (Conv.)..... 381,150
-------------
INDUSTRIALS
$ 400K Kia Precisions Works
0.50% due 12/31/09 (Conv.)..... 388,000
-------------
INVESTMENT COMPANIES
5,000 Atlantis Korean Smaller
Companies*..................... 233,250
-------------
MULTI-INDUSTRY
$ 250K Kolon International Corp.
1.00% due 12/31/08 (Conv.)..... 240,000
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
OIL RELATED
CHF 300K Yukong, Ltd.
1.00% due 12/31/98 (Conv.)..... $ 270,481
-------------
PHARMACEUTICALS
$ 250K Dong-A Pharmaceutical Co.,
Ltd. 3.125% due 12/31/06
(Conv.)........................ 317,500
-------------
STEEL & IRON
35,300 Pohang Iron & Steel, Ltd. (ADR).. 772,188
-------------
UTILITIES
30,000 Korea Electric Power Corp.
(ADR).......................... 802,500
7,000 Korea Electric Power Corp.
(GDR).......................... 185,500
-------------
988,000
-------------
WHOLESALE DISTRIBUTOR
$ 500K Daewoo Corp.
0.25% due 12/31/08 (Conv.)..... 515,000
-------------
TOTAL SOUTH KOREA................ 6,788,789
-------------
TAIWAN (1.9%)
ELECTRONIC & ELECTRICAL EQUIPMENT
$ 210K United Micro Electronics
1.25% due 06/08/04 (Conv.)..... 262,500
-------------
INVESTMENT COMPANIES
26,000 Taiwan American Fund (Pref.)*.... 260,000
-------------
TEXTILES
$ 300K Far Eastern Textile
4.00% due 10/07/06 (Conv.)..... 342,000
-------------
TRANSPORTATION
$ 500K U-Ming Marine Transport
1.50% due 02/07/01 (Conv.)..... 468,750
$ 504K Yang Ming Marine
Transportation - 144A**
2.00% due 10/06/01
(Conv.)........................ 549,360
-------------
1,018,110
-------------
TOTAL TAIWAN..................... 1,882,610
-------------
THAILAND (10.6%)
AUTOMOTIVE
46,000 Swedish Motor Corp., Ltd......... 199,126
-------------
BANKING
265,000 Krung Thai Bank Public Co.,
Ltd............................ 1,094,519
550,000 Siam City Bank Ltd............... 633,439
30,000 Siam Commercial Bank Co., Ltd.... 395,552
209,200 Thai Military Bank, Ltd.......... 847,434
-------------
2,970,944
-------------
BUILDING MATERIALS
15,000 Siam Cement Co., Ltd............. 831,612
26,600 Siam City Cement Co., Ltd........ 416,219
100,000 Thai-German Ceramic Industry Co.,
Ltd............................ 268,070
80,000 Tipco Asphalt Co., Ltd........... 447,975
75,000 TPI Polene Co., Ltd.............. 446,783
3,750 TPI Polene Co., Ltd. (Rights)*... 20,850
-------------
2,431,509
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- -------------
<C> <S> <C>
ENTERTAINMENT
20,000 Grammy Entertainment PLC......... $ 187,450
-------------
FINANCIAL SERVICES
60,000 Krung Thai Thanakit PLC
(Local)*....................... 243,050
120,000 Krung Thai Thanakit PLC*......... 486,100
4,074 SCF Finance & Securities Co.,
Ltd.*.......................... 19,254
13,000 Securities One, Ltd.............. 121,843
3,235 Siam City Finance & Securities
Co. Ltd.*...................... 15,289
-------------
885,536
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
25,000 Charoen Pokphand Feedmill Co.
Ltd............................ 122,121
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
48,000 Sanyo Universal Electic Co.,
Ltd............................ 209,690
-------------
INVESTMENT COMPANIES
600,000 Ruang Khao 2 Fund................ 303,813
-------------
METALS & MINING
25,000 Ban Pu Coal Co., Ltd............. 544,083
-------------
<CAPTION>
<C> <S> <C>
OIL RELATED
45,000 PTT Exploration & Production
Public Co., Ltd................ 471,803
-------------
REAL ESTATE
58,000 Land & House Co. Ltd............. 953,614
-------------
TELECOMMUNICATIONS
18,500 Advanced Information Services.... 327,681
55,000 Jasmine International Public Co.,
Ltd............................ 281,771
20,000 United Communication Industry.... 255,759
-------------
865,211
-------------
TRANSPORTATION
167,400 Thai Airways International Ltd... 289,194
-------------
TOTAL THAILAND................... 10,434,094
-------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS, RIGHTS AND
BONDS (IDENTIFIED COST
$90,591,024)................... 94,264,235
-------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY
AMOUNT (IN
THOUSANDS)
- ------------
<C> <S> <C>
PURCHASED PUT OPTION ON FOREIGN CURRENCY (0.3%)
Y130,000 January 10, 1996/Y100.55
(Identified Cost $347,100)...... 331,500
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------ -------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (3.1%)
U.S. GOVERNMENT AGENCY
$ 3,000 Federal Home Loan Mortgage Corp.
5.75% due 01/02/96 (Amortized Cost
$2,999,521)....................... $ 2,999,521
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$93,937,645) (B)................ 99.3% 97,595,256
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.7 735,039
---------- ------------
NET ASSETS........................ 100.0% $ 98,330,295
---------- ------------
---------- ------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
GDR GLOBAL DEPOSITORY RECEIPT.
GDS GLOBAL DEPOSITORY SHARES.
K IN THOUSANDS.
* NON-INCOME PRODUCING SECURITY.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
(A) SECURITY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE SHOWN HAS
BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $95,094,341; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $8,730,807 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $6,229,892, RESULTING IN NET UNREALIZED
APPRECIATION OF $2,500,915.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT DECEMBER 31, 1995:
<TABLE>
<CAPTION>
CONTRACTS IN EXCHANGE DELIVERY UNREALIZED
TO DELIVER FOR DATE APPRECIATION
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
$ 230,960 MYR 586,916 01/02/96 $ 246
Y 9,306,169 $ 90,730 01/04/96 684
-----
Total
unrealized appreciation .................... $ 930
-----
-----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
SUMMARY OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------ ------------ ----------
<S> <C> <C>
Agriculture................... $ 453,021 0.5%
Auto Related.................. 62,119 0.1
Automotive.................... 3,542,010 3.6
Banking....................... 12,459,325 12.7
Banks - Commercial............ 918,328 0.9
Building & Construction....... 3,037,741 3.0
Building Materials............ 4,142,887 4.2
Business Services............. 848,330 0.9
Chemicals..................... 1,046,978 1.1
Commercial Services........... 93,662 0.1
Computer Software & Services.. 158,055 0.2
Computers..................... 454,465 0.5
Computers - Systems........... 78,084 0.1
Conglomerates................. 5,362,224 5.4
Construction Equipment........ 471,570 0.5
Data Processing............... 57,668 0.1
Electronic & Electrical
Equipment.................... 4,253,360 4.4
Electronics................... 502,292 0.6
Entertainment................. 1,389,105 1.4
Financial Services............ 3,794,333 3.9
Food, Beverage, Tobacco &
Household Products........... 3,558,429 3.6
Foreign Currency Put Option... 331,500 0.3
Forest Products, Paper &
Packaging.................... 1,071,140 1.1
Gas........................... 153,339 0.2
Health & Personal Care........ 35,414 0.0
Hotels........................ 291,823 0.3
Household Furnishings &
Appliances................... 254,586 0.2
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------ ------------ ----------
<S> <C> <C>
Industrials................... $ 476,050 0.5%
Insurance..................... 927,367 0.9
Investment Companies.......... 797,063 0.8
Leisure....................... 1,007,051 1.0
Machine Tools................. 144,944 0.1
Machinery..................... 1,281,370 1.3
Manufacturing................. 1,208,457 1.2
Medical Supplies.............. 55,733 0.1
Merchandising................. 74,891 0.1
Metals........................ 1,244,510 1.2
Metals & Mining............... 1,138,905 1.1
Multi-Industry................ 1,483,153 1.5
Natural Gas................... 154,969 0.2
Oil Related................... 1,925,620 2.0
Pharmaceuticals............... 895,818 0.9
Photography................... 435,092 0.4
Plantation.................... 396,396 0.4
Publishing.................... 534,022 0.5
Real Estate................... 12,551,711 12.8
Retail........................ 426,764 0.4
Retail - General Merchandise.. 171,262 0.2
Retail - Specialty............ 276,658 0.3
Shipbuilding.................. 742,750 0.8
Steel & Iron.................. 1,182,430 1.2
Telecommunications............ 6,151,987 6.2
Textiles...................... 674,520 0.7
Transportation................ 4,130,017 4.1
U.S. Government Agency........ 2,999,521 3.1
Utilities..................... 4,616,558 4.7
Wholesale & International
Trade........................ 96,759 0.1
Wholesale Distributor......... 571,120 0.6
------------ -----
$ 97,595,256 99.3%
------------ -----
------------ -----
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- --------------------------------------------------------------------------------------- ------------ ----------
<S> <C> <C>
Common Stocks.......................................................................... $ 89,869,914 91.4%
Convertible Bonds...................................................................... 4,047,329 4.1
Foreign Currency Put Option............................................................ 331,500 0.3
Preferred Stocks....................................................................... 260,000 0.3
Short-Term Investment.................................................................. 2,999,521 3.1
Rights................................................................................. 20,850 0.0
Warrants............................................................................... 66,142 0.1
------------ -----
$ 97,595,256 99.3%
------------ -----
------------ -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (83.2%)
AEROSPACE (2.0%)
69,000 Boeing Co........................... $ 5,407,875
20,000 United Technologies Corp............ 1,897,500
---------------
7,305,375
---------------
AGRICULTURE RELATED (3.1%)
45,000 Case Corp........................... 2,058,750
70,000 IMC Global, Inc..................... 2,861,250
70,000 Pioneer Hi-Bred International,
Inc............................... 3,893,750
34,000 Potash Corp. of Saskatchewan, Inc.
(Canada).......................... 2,409,750
---------------
11,223,500
---------------
BANKS (2.7%)
39,000 Bank of Boston Corp................. 1,803,750
50,000 BankAmerica Corp.................... 3,237,500
35,000 Chase Manhattan Corp................ 2,121,875
20,000 First Interstate Bancorp............ 2,730,000
---------------
9,893,125
---------------
BEVERAGES - SOFT DRINKS (1.6%)
30,000 Coca Cola Co........................ 2,227,500
60,000 PepsiCo Inc......................... 3,352,500
---------------
5,580,000
---------------
BIOTECHNOLOGY (5.2%)
70,000 Amgen Inc.*......................... 4,147,500
50,000 Biochem Pharma, Inc.*............... 2,000,000
50,000 Biogen Inc.*........................ 3,050,000
70,000 Centocor, Inc.*..................... 2,161,250
15,000 Chiron Corp.*....................... 1,657,500
131,000 Guidant Corp........................ 5,534,750
---------------
18,551,000
---------------
CAPITAL GOODS (1.2%)
22,400 AlliedSignal, Inc................... 1,064,000
40,000 Lockheed Martin Corp................ 3,160,000
---------------
4,224,000
---------------
CHEMICALS (0.9%)
25,000 Monsanto Co......................... 3,062,500
---------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.2%)
56,000 Cisco Systems, Inc.*................ 4,179,000
---------------
COMMUNICATIONS - SOFTWARE & SERVICES (1.7%)
40,000 America Online, Inc.*............... 1,490,000
4,000 CKS Group, Inc.*.................... 155,000
22,000 Intuit, Inc.*....................... 1,716,000
20,000 Macromedia, Inc.*................... 1,037,500
20,000 Quarterdeck Corp.*.................. 547,500
23,000 Sun Microsystems, Inc.*............. 1,049,375
---------------
5,995,375
---------------
COMMUNICATIONS PRODUCTS & SERVICES (0.6%)
50,000 Picturetel Corp.*................... 2,143,750
---------------
COMPUTER SERVICES (1.1%)
75,000 General Motors Corp. (Class E)...... 3,900,000
---------------
COMPUTER SOFTWARE (0.8%)
25,000 Adobe Systems, Inc.................. 1,550,000
36,000 PeopleSoft, Inc.*................... 1,530,000
---------------
3,080,000
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMPUTER SOFTWARE & SERVICES (0.1%)
2,000 Citrix Systems, Inc.*............... $ 65,000
10,000 Elcom International, Inc.*.......... 150,000
---------------
215,000
---------------
CONSUMER BUSINESS SERVICES (4.3%)
45,000 Automatic Data Processing, Inc...... 3,341,250
35,000 Computer Sciences Corp.*............ 2,458,750
50,000 DST Systems, Inc.*.................. 1,425,000
42,819 First Data Corp..................... 2,863,521
26,700 HFS, Inc.*.......................... 2,182,725
40,000 Reuters Holdings PLC (ADR) (United
Kingdom).......................... 2,210,000
20,000 Service Corp. International......... 880,000
---------------
15,361,246
---------------
CONSUMER PRODUCTS (6.4%)
36,000 American Standard, Inc.*............ 1,008,000
100,000 Dial Corp........................... 2,962,500
61,000 Estee Lauder Companies
(Class A)*........................ 2,127,375
4,800 Helene Curtis Industries Inc........ 151,800
50,000 Kimberly-Clark Corp................. 4,137,500
40,000 Mondavi (Robert) Corp. (The) (Class
A)*............................... 1,100,000
37,000 Philip Morris Companies, Inc........ 3,348,500
40,500 Procter & Gamble Co................. 3,361,500
40,000 Ralston-Ralston Purina Group........ 2,495,000
75,000 Sara Lee Corp....................... 2,390,625
---------------
23,082,800
---------------
DRUGS (2.7%)
70,000 Lilly (Eli) & Co.................... 3,937,500
30,000 Pharmacia & Upjohn, Inc............. 1,162,500
80,000 SmithKline Beecham PLC (ADR) (United
Kingdom).......................... 4,440,000
---------------
9,540,000
---------------
ELECTRONICS - DEFENSE (1.1%)
115,000 Loral Corp.......................... 4,068,125
---------------
ENERGY (0.5%)
50,000 Sonat, Inc.......................... 1,781,250
---------------
ENTERTAINMENT (1.6%)
70,000 C U C International, Inc.*.......... 2,388,750
56,000 Walt Disney Co...................... 3,304,000
---------------
5,692,750
---------------
FINANCIAL - MISCELLANEOUS (6.3%)
100,000 Ahmanson (H.F.) & Co................ 2,650,000
120,000 Bear Stearns Companies, Inc......... 2,385,000
95,000 Countrywide Credit Industries,
Inc............................... 2,066,250
31,000 Donaldson, Lufkin & Jenrette,
Inc.*............................. 968,750
50,000 Edwards (A.G.), Inc................. 1,193,750
30,000 Federal Home Loan Mortgage Corp..... 2,505,000
20,000 Federal National Mortgage
Association....................... 2,482,500
17,000 Golden West Financial Corp.......... 939,250
40,000 Green Tree Financial Corp........... 1,055,000
60,000 Merrill Lynch & Co., Inc............ 3,060,000
43,000 Morgan Stanley Group, Inc........... 3,466,875
---------------
22,772,375
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
HEALTH MAINTENANCE ORGANIZATIONS (0.9%)
50,000 Health Management Associates, Inc.
(Class A)*........................ $ 1,306,250
45,000 U.S. Healthcare, Inc................ 2,086,875
---------------
3,393,125
---------------
HEALTHCARE PRODUCTS & SERVICES (6.3%)
30,000 HBO & Co............................ 2,287,500
100,000 Healthcare Compare Corp.*........... 4,350,000
120,000 Healthsource, Inc.*................. 4,320,000
20,000 Healthsouth Corp.*.................. 582,500
6,400 Pacificare Health Systems, Inc.
(Class A)*........................ 550,400
50,000 Pacificare Health Systems, Inc.
(Class B)*........................ 4,350,000
40,000 Shared Medical Systems Corp......... 2,160,000
63,000 United Healthcare Corp.............. 4,126,500
---------------
22,726,900
---------------
HOUSING RELATED (1.8%)
20,000 Centex Corp......................... 695,000
125,000 Clayton Homes, Inc.................. 2,671,875
31,600 Oakley, Inc.*....................... 1,074,400
51,000 Oakwood Homes Corp.................. 1,957,125
---------------
6,398,400
---------------
INSURANCE (7.9%)
36,000 Aetna Life & Casualty Co............ 2,493,000
40,000 Allstate Corp. (The) (Note 3)....... 1,645,000
49,000 American International Group, Inc... 4,532,500
20,000 Chubb Corp.......................... 1,935,000
4,900 CNA Financial Corp.*................ 556,150
95,100 Exel, Ltd........................... 5,801,100
25,000 General Re Corp..................... 3,875,000
105,000 Prudential Reinsurance Holdings,
Inc............................... 2,454,375
34,500 SunAmerica Inc...................... 1,638,750
60,000 Travelers Group, Inc................ 3,772,500
---------------
28,703,375
---------------
MEDIA GROUP (1.5%)
36,000 Clear Channel Communications,
Inc.*............................. 1,588,500
105,000 Infinity Broadcasting Corp.*........ 3,911,250
---------------
5,499,750
---------------
MEDICAL PRODUCTS & SUPPLIES (3.2%)
5,100 Becton, Dickinson & Co.............. 382,500
40,000 Boston Scientific Corp.*............ 1,960,000
40,000 IDEXX Laboratories, Inc.*........... 1,860,000
39,800 Medtronic Inc....................... 2,223,825
15,000 Neuromedical Systems, Inc.*......... 300,000
20,000 Omnicare, Inc....................... 895,000
45,000 St. Jude Medical, Inc.*............. 1,923,750
50,000 Target Therapeutics, Inc.*.......... 2,137,500
---------------
11,682,575
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
MISCELLANEOUS (1.1%)
75,000 Thermo Electron Corp.*.............. $ 3,900,000
---------------
MULTI-LINE INSURANCE (0.9%)
30,000 CIGNA Corp.......................... 3,097,500
---------------
PHARMACEUTICALS (4.7%)
35,000 American Home Products Corp......... 3,395,000
30,000 Bristol-Myers Squibb Co............. 2,576,250
60,000 Johnson & Johnson................... 5,137,500
60,000 Merck & Co., Inc.................... 3,945,000
30,000 Pfizer, Inc......................... 1,890,000
---------------
16,943,750
---------------
RESTAURANTS (0.6%)
10,000 Boston Chicken, Inc.*............... 320,000
20,000 Lone Star Steakhouse & Saloon,
Inc.*............................. 765,000
44,000 Starbucks Corp.*.................... 918,500
---------------
2,003,500
---------------
RETAIL (3.3%)
70,000 Federated Department Stores,
Inc.*............................. 1,925,000
8,000 General Nutrition Companies,
Inc.*............................. 184,000
120,000 Gucci Group NV (ADR) (Italy)*....... 4,665,000
10,000 Home Depot, Inc..................... 478,750
40,000 St. John Knits, Inc................. 2,125,000
80,000 Walgreen Co......................... 2,390,000
---------------
11,767,750
---------------
TELECOMMUNICATION EQUIPMENT (0.1%)
19,352 Ericsson (L.M.) Telephone Co. AB
(ADR) (Sweden).................... 374,945
---------------
TELECOMMUNICATIONS (5.1%)
30,000 ADC Telecommunications, Inc.*....... 1,087,500
39,000 Ascend Communications, Inc.*........ 3,163,875
40,000 AT&T Corp........................... 2,590,000
30,000 Cascade Communications Corp.*....... 2,550,000
75,000 GTE Corp............................ 3,300,000
23,000 Shiva Corp.*........................ 1,673,288
32,000 Stratacom, Inc.*.................... 2,336,000
50,000 WorldCom Inc.*...................... 1,762,500
---------------
18,463,163
---------------
TRANSPORTATION (0.7%)
35,000 Burlington Northern Santa Fe
Corp.............................. 2,730,000
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$263,416,335)..................... 299,335,904
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION (14.7%)
$ 47,000 U.S. Treasury Bond 6.875% due
08/15/25 (Identified Cost
$51,829,531)...................... 53,014,530
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (1.7%)
REPURCHASE AGREEMENT
$ 5,915 The Bank of New York (dated
12/29/95; proceeds $5,917,332;
collateralized by $6,271,607 U.S.
Treasury Bill 5.23% due 09/19/96
valued at $6,033,667) (Identified
Cost $5,915,360).................... $ 5,915,360
---------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
---------------
<C> <S> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $321,161,226) (A).......... 99.6% $ 358,265,794
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.4 1,513,576
---------- -------------
NET ASSETS....................... 100.0% $ 359,779,370
---------- -------------
---------- -------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (74.8%)
AEROSPACE & DEFENSE (2.0%)
80,000 Honeywell, Inc...................... $ 3,890,000
70,000 Rockwell International Corp......... 3,701,250
---------------
7,591,250
---------------
ALUMINUM (1.0%)
70,000 Aluminum Co. of America............. 3,701,250
---------------
AUTOMOTIVE (2.1%)
139,700 Ford Motor Co....................... 4,051,300
80,000 General Motors Corp................. 4,230,000
---------------
8,281,300
---------------
BANKS (1.1%)
67,000 BankAmerica Corp.................... 4,338,250
---------------
BANKS - MONEY CENTER (0.9%)
61,000 Chemical Banking Corp............... 3,583,750
---------------
BANKS - REGIONAL (1.2%)
21,300 Wells Fargo & Co.................... 4,600,800
---------------
BEVERAGES - SOFT DRINKS (0.9%)
66,000 PepsiCo Inc......................... 3,687,750
---------------
BIOTECHNOLOGY (1.9%)
96,000 Autoimmune, Inc.*................... 1,056,000
27,000 Biochem Pharma, Inc.*............... 1,080,000
17,000 Biogen Inc.*........................ 1,037,000
38,000 Cephalon Inc.*...................... 1,548,500
11,900 Chiron Corp.*....................... 1,314,950
69,000 Liposome Co., Inc.*................. 1,380,000
---------------
7,416,450
---------------
BROKERAGE (0.8%)
40,000 Morgan Stanley Group, Inc........... 3,225,000
---------------
CHEMICALS (1.9%)
53,000 Du Pont (E.I.) de Nemours & Co.,
Inc............................... 3,703,375
30,000 Monsanto Co......................... 3,675,000
---------------
7,378,375
---------------
CHEMICALS - SPECIALTY (0.9%)
110,000 Georgia Gulf Corp................... 3,382,500
---------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (2.5%)
74,000 Bay Networks, Inc................... 3,034,000
40,000 Cisco Systems, Inc.*................ 2,985,000
49,600 Stratacom, Inc.*.................... 3,620,800
---------------
9,639,800
---------------
COMPUTER EQUIPMENT (2.0%)
57,000 Komag Inc........................... 2,600,625
100,000 Read Rite Corp.*.................... 2,312,500
62,000 Seagate Technology, Inc.*........... 2,945,000
---------------
7,858,125
---------------
COMPUTER SERVICES (0.8%)
62,000 General Motors Corp. (Class E)...... 3,224,000
---------------
COMPUTER SOFTWARE (2.4%)
55,000 Broderbund Software, Inc.*.......... 3,341,250
34,000 Microsoft Corp.*.................... 2,983,500
70,000 Oracle Systems Corp.*............... 2,957,500
---------------
9,282,250
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMPUTERS (0.6%)
90,000 Silicon Graphics, Inc.*............. $ 2,475,000
---------------
COMPUTERS - SYSTEMS (1.6%)
38,000 Hewlett-Packard Co.................. 3,182,500
33,200 International Business Machines
Corp.............................. 3,046,100
---------------
6,228,600
---------------
CONSUMER PRODUCTS (0.9%)
74,000 Tambrands, Inc...................... 3,533,500
---------------
DRUGS (1.0%)
38,600 Warner-Lambert Co................... 3,749,025
---------------
ELECTRIC - MAJOR (0.9%)
50,000 General Electric Co................. 3,600,000
---------------
ELECTRICAL EQUIPMENT (0.9%)
45,000 Emerson Electric Co................. 3,678,750
---------------
FINANCIAL - MISCELLANEOUS (2.4%)
56,000 Federal Home Loan Mortgage
Corp.............................. 4,676,000
37,000 Federal National Mortgage
Association....................... 4,592,625
---------------
9,268,625
---------------
FOODS (1.9%)
60,000 Campbell Soup Co.................... 3,600,000
91,000 ConAgra, Inc........................ 3,753,750
---------------
7,353,750
---------------
HEALTHCARE - MISCELLANEOUS (2.9%)
180,000 Coventry Corp.*..................... 3,712,500
135,000 Humana, Inc.*....................... 3,695,625
86,000 U.S. Healthcare, Inc................ 3,988,250
---------------
11,396,375
---------------
HOSPITAL MANAGEMENT (0.9%)
71,500 Columbia/HCA Healthcare Corp........ 3,628,625
---------------
HOUSEHOLD PRODUCTS (0.9%)
49,000 Colgate-Palmolive Co................ 3,442,250
---------------
INSURANCE (1.1%)
46,000 American International Group, Inc... 4,255,000
---------------
METALS - MISCELLANEOUS (1.0%)
60,000 Phelps Dodge Corp................... 3,735,000
---------------
MULTI-LINE INSURANCE (0.9%)
34,000 CIGNA Corp.......................... 3,510,500
---------------
NATURAL GAS (1.2%)
107,000 Williams Companies, Inc............. 4,694,625
---------------
OFFICE EQUIPMENT & SUPPLIES (1.1%)
93,200 Alco Standard Corp.................. 4,252,250
---------------
OIL DRILLING & SERVICES (1.2%)
68,000 Schlumberger Ltd. (ADR) (Netherlands
Antilles)......................... 4,709,000
---------------
OIL INTEGRATED - INTERNATIONAL (4.9%)
94,000 Chevron Corp........................ 4,935,000
59,000 Exxon Corp.......................... 4,727,375
43,000 Mobil Corp.......................... 4,816,000
60,000 Texaco, Inc......................... 4,710,000
---------------
19,188,375
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
PHARMACEUTICALS (5.8%)
86,000 Abbott Laboratories................ $ 3,590,500
36,000 American Home Products Corp........ 3,492,000
42,000 Johnson & Johnson.................. 3,596,250
76,000 Lilly (Eli) & Co................... 4,275,000
59,000 Merck & Co., Inc................... 3,879,250
59,000 Pfizer, Inc........................ 3,717,000
---------------
22,550,000
---------------
RAILROADS (1.1%)
58,500 Conrail, Inc....................... 4,095,000
---------------
RETAIL (2.2%)
58,500 Dayton-Hudson Corp................. 4,387,500
87,000 Home Depot, Inc.................... 4,165,125
---------------
8,552,625
---------------
RETAIL - SPECIALTY APPAREL (0.9%)
83,000 Gap, Inc........................... 3,486,000
---------------
SAVINGS & LOAN ASSOCIATIONS (2.1%)
242,000 California Federal Bank*........... 3,811,500
220,000 Roosevelt Financial Group, Inc..... 4,207,500
---------------
8,019,000
---------------
SEMICONDUCTORS (0.7%)
68,000 Applied Materials, Inc.*........... 2,669,000
---------------
SHOES (1.9%)
65,000 Nike, Inc. (Class B)............... 4,525,625
100,000 Reebok International Ltd. (United
Kingdom)......................... 2,825,000
---------------
7,350,625
---------------
STEEL & IRON (2.0%)
260,000 Bethlehem Steel Corp.*............. 3,640,000
160,000 Inland Steel Industries, Inc....... 4,020,000
---------------
7,660,000
---------------
TOBACCO (1.7%)
150,000 Dimon, Inc......................... 2,643,750
42,000 Philip Morris Companies, Inc....... 3,801,000
---------------
6,444,750
---------------
UTILITIES - ELECTRIC (6.8%)
130,000 Baltimore Gas & Electric Co........ 3,705,000
120,000 CINergy Corp....................... 3,675,000
135,000 Consolidated Edison Co. of New
York, Inc........................ 4,320,000
105,000 Florida Progress Corp.............. 3,714,375
110,000 General Public Utilities Corp...... 3,740,000
150,000 Houston Industries, Inc............ 3,637,500
140,000 Kansas City Power & Light Co....... 3,657,500
---------------
26,449,375
---------------
UTILITIES - GAS (0.9%)
130,000 Pacific Enterprises................ 3,672,500
---------------
TOTAL COMMON STOCKS (IDENTIFIED
COST $282,450,073)............... 290,838,975
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
CORPORATE BONDS (10.4%)
BANKS (2.8%)
$ 3,000 Bank of Boston Corp.
6.875% due 07/15/03............... $ 3,102,270
1,000 First National Bank Corp.
7.32% due 12/01/10................ 1,004,230
2,000 First Nationwide Bank
10.00% due 10/01/06............... 2,418,160
2,000 Midland Bank PLC
7.65% due 05/01/25 (United
Kingdom).......................... 2,225,900
2,000 Provident Bank
6.375% due 01/15/04............... 1,991,580
---------------
10,742,140
---------------
BROADCAST MEDIA (0.6%)
2,000 Time Warner Entertainment Co. 8.375%
due 07/15/33...................... 2,156,580
---------------
BROKERAGE (0.6%)
2,000 Lehman Brothers Holdings, Inc. 8.80%
due 03/01/15...................... 2,290,600
---------------
FINANCIAL (1.9%)
2,000 Kemper Corp.
6.875% due 09/15/03............... 2,060,700
3,000 RHG Finance Corp.
8.875% due 10/01/05............... 3,159,660
2,000 Sun Life Financial Co. - 144A**
6.625% due 12/15/07 (Canada)...... 2,017,500
---------------
7,237,860
---------------
FOREIGN GOVERNMENT AGENCY (1.4%)
3,000 Italy (Republic of)
6.875% due 09/27/23............... 2,928,150
2,000 Province of Quebec
8.625% due 12/01/26 (Canada)...... 2,379,060
---------------
5,307,210
---------------
HOTELS (0.5%)
2,000 La Quinta Motor Inns, Inc.
7.40% due 09/15/05................ 2,060,000
---------------
INDUSTRIALS (0.5%)
2,000 Brascan Ltd.
7.375% due 10/01/02 (Canada)...... 2,059,200
---------------
INSURANCE (0.6%)
2,000 Liberty Mutual - 144A**
8.20% due 05/04/07................ 2,223,120
---------------
MANUFACTURING - CONSUMER & INDUSTRIAL PRODUCTS (0.5%)
2,000 Tenneco Inc. 7.25% due 12/15/25..... 2,113,840
---------------
TOBACCO (0.5%)
2,000 RJR Nabisco, Inc.
8.75% due 08/15/05................ 2,056,480
---------------
UTILITIES - ELECTRIC (0.5%)
2,000 Niagara Mohawk Power Corp. 9.25% due
10/01/01.......................... 2,019,560
---------------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $39,070,990)................. 40,266,590
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (9.9%)
$ 4,000 U.S. Treasury Bond
7.625% due 02/15/25............... $ 4,890,625
4,000 U.S. Treasury Note
6.50% due 05/15/97................ 4,068,750
5,000 U.S. Treasury Note
6.375% due 01/15/99............... 5,154,688
10,000 U.S. Treasury Note
6.875% due 08/31/99............... 10,507,812
8,000 U.S. Treasury Note
7.75% due 11/30/99................ 8,670,000
3,000 U.S. Treasury Note
5.75% due 08/15/03................ 3,038,438
2,000 U.S. Treasury Note
7.50% due 02/15/05................ 2,268,750
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $37,773,199)..... 38,599,063
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (4.5%)
U.S. GOVERNMENT AGENCIES
$ 12,000 Federal Home Loan Banks
5.53% due 01/08/96................ $ 11,987,096
5,450 Federal Home Loan Mortgage Corp.
5.75% due 01/02/96................ 5,449,130
---------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $17,436,226)...... 17,436,226
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $376,730,488)(B).......... 99.6% 387,140,854
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 0.4 1,438,315
---------- -------------
NET ASSETS....................... 100.0% $ 388,579,169
---------- -------------
---------- -------------
<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN
HAVE BEEN ADJUSTED TO REFLECT A MONEY MARKET EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities,
at value *................ $250,870,737 $513,784,802 $151,385,614 $476,747,481
Cash........................ 6,285 -- -- --
Receivable for:
Investments sold.......... -- -- -- --
Shares of beneficial
interest sold........... 1,233 620 126,030 245,704
Dividends................. -- -- -- 1,479,466
Interest.................. 694,030 7,101,739 2,946,799 907,704
Foreign withholding taxes
reclaimed............... -- -- -- --
Prepaid expenses and other
assets.................... 5,032 10,237 3,837 8,252
------------ ------------ ------------ ------------
TOTAL ASSETS........ 251,577,317 520,897,398 154,462,280 479,388,607
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Investments purchased..... -- -- -- --
Shares of beneficial
interest repurchased.... 1,646,410 16,965 4,877 18
Investment management
fee..................... 98,057 217,049 64,192 258,611
Accrued expenses and other
payables.................. 46,264 84,829 83,626 59,833
------------ ------------ ------------ ------------
TOTAL LIABILITIES... 1,790,731 318,843 152,695 318,462
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in-capital............. 249,786,564 510,241,645 246,550,419 414,225,788
Accumulated undistributed
net investment income
(distributions in excess
of net investment
income)................... 22 608,166 494,390 5,421
Accumulated undistributed
net realized gain
(accumulated net realized
loss)..................... -- (24,851,611) (74,113,150) 1,146,581
Net unrealized appreciation
(depreciation)............ -- 34,580,355 (18,622,074) 63,692,355
------------ ------------ ------------ ------------
NET ASSETS.......... $249,786,586 $520,578,555 $154,309,585 $479,070,145
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*IDENTIFIED COST............ $250,870,737 $479,204,447 $170,007,688 $413,055,126
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL
INTEREST OUTSTANDING...... 249,786,564 47,512,749 24,631,652 32,623,759
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSET VALUE PER
SHARE (unlimited
authorized shares of $.01
par value)................ $1.00 $10.96 $6.26 $14.68
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
- ------------------
** Includes foreign cash of $213,177 and $292,982, respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND EUROPEAN PACIFIC
GROWTH GROWTH GROWTH GROWTH GROWTH EQUITY STRATEGIST
------------ ----------- ------------ -------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities,
at value *................ $865,701,687 $67,150,643 $204,740,938 $ 185,926,037 $ 97,595,256 $358,265,794 $387,140,854
Cash........................ 4,367 1,657 1,150,008 770,522** 720,054** -- 49,045
Receivable for:
Investments sold.......... -- -- 237,772 1,292,043 364,341 3,585,460 --
Shares of beneficial
interest sold........... 218,339 6,853 266,638 14,082 406,298 682,738 3,681
Dividends................. 1,707,909 63,899 413,396 434,580 34,875 238,033 176,730
Interest.................. 725,341 -- -- 4,526 53,658 1,221,982 1,480,158
Foreign withholding taxes
reclaimed............... -- -- 249,370 267,797 -- -- --
Prepaid expenses and other
assets.................... 9,047 1,941 3,101 9,333 4,403 4,436 4,467
------------ ----------- ------------ -------------- ------------- ------------ ------------
TOTAL ASSETS........ 868,366,690 67,224,993 207,061,223 188,718,920 99,178,885 363,998,443 388,854,935
------------ ----------- ------------ -------------- ------------- ------------ ------------
LIABILITIES:
Payable for:
Investments purchased..... 2,464,675 146,069 1,158,449 353,904 512,806 3,989,715 --
Shares of beneficial
interest repurchased.... 3,659 19,073 178 15,285 145,464 11,367 53,075
Investment management
fee..................... 417,687 36,592 127,465 156,935 80,925 149,095 164,176
Accrued expenses and other
payables.................. 63,843 28,089 36,607 73,387 109,395 68,896 58,515
------------ ----------- ------------ -------------- ------------- ------------ ------------
TOTAL LIABILITIES... 2,949,864 229,823 1,322,699 599,511 848,590 4,219,073 275,766
------------ ----------- ------------ -------------- ------------- ------------ ------------
NET ASSETS:
Paid-in-capital............. 669,362,004 51,954,425 179,339,978 144,279,577 97,893,332 268,049,930 374,579,116
Accumulated undistributed
net investment income
(distributions in excess
of net investment
income)................... 17,214 131,980 73,685 (210,717) 1,563,457 21,743 47,313
Accumulated undistributed
net realized gain
(accumulated net realized
loss)..................... 23,590,802 699,431 6,036,504 11,343,892 (4,782,846) 54,603,129 3,542,374
Net unrealized appreciation
(depreciation)............ 172,446,806 14,209,334 20,288,357 32,706,657 3,656,352 37,104,568 10,410,366
------------ ----------- ------------ -------------- ------------- ------------ ------------
NET ASSETS.......... $865,416,826 $66,995,170 $205,738,524 $ 188,119,409 $ 98,330,295 $359,779,370 $388,579,169
------------ ----------- ------------ -------------- ------------- ------------ ------------
------------ ----------- ------------ -------------- ------------- ------------ ------------
*IDENTIFIED COST............ $693,254,881 $52,941,309 $184,452,332 $ 153,222,895 $ 93,937,645 $321,161,226 $376,730,488
------------ ----------- ------------ -------------- ------------- ------------ ------------
------------ ----------- ------------ -------------- ------------- ------------ ------------
SHARES OF BENEFICIAL
INTEREST OUTSTANDING...... 55,505,453 4,400,596 17,604,594 10,731,379 10,136,924 13,258,498 31,223,334
------------ ----------- ------------ -------------- ------------- ------------ ------------
------------ ----------- ------------ -------------- ------------- ------------ ------------
NET ASSET VALUE PER
SHARE (unlimited
authorized shares of $.01
par value)................ $15.59 $15.22 $11.69 $17.53 $9.70 $27.14 $12.45
------------ ----------- ------------ -------------- ------------- ------------ ------------
------------ ----------- ------------ -------------- ------------- ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY QUALITY
MARKET INCOME PLUS HIGH YIELD UTILITIES
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest (Note 3)....... $15,059,748 $ 35,327,744 $17,789,371 $ 3,728,673
Dividends............... -- 21,333 -- 16,077,649*
----------- ------------ ----------- ------------
TOTAL INCOME........ 15,059,748 35,349,077 17,789,371 19,806,322
----------- ------------ ----------- ------------
EXPENSES
Investment management
fee................... 1,243,727 2,323,329 673,472 2,749,873
Transfer agent fees and
expenses.............. 500 500 500 500
Shareholder reports and
notices............... 15,494 44,894 7,381 44,995
Professional fees....... 28,956 35,332 17,006 30,283
Trustees' fees and
expenses.............. 3,620 4,790 1,723 1,471
Custodian fees.......... 18,466 80,099 17,294 31,256
Other................... 7,485 14,207 4,669 8,809
----------- ------------ ----------- ------------
TOTAL EXPENSES...... 1,318,248 2,503,151 722,045 2,867,187
----------- ------------ ----------- ------------
NET INVESTMENT
INCOME........ 13,741,500 32,845,926 17,067,326 16,939,135
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on:
Investments............. -- 14,651,610 (1,098,358) 3,776,681
Foreign exchange
transactions.......... -- -- -- --
----------- ------------ ----------- ------------
TOTAL GAIN (LOSS)... -- 14,651,610 (1,098,358) 3,776,681
----------- ------------ ----------- ------------
Net change in unrealized
appreciation/depreciation
on:
Investments (Note 3).... -- 53,023,332 2,521,011 86,839,183
Translation of forward
foreign currency
contracts, other
assets and liabilities
denominated in foreign
currencies............ -- -- -- --
----------- ------------ ----------- ------------
TOTAL APPRECIATION
(DEPRECIATION).... -- 53,023,332 2,521,011 86,839,183
----------- ------------ ----------- ------------
NET GAIN............ -- 67,674,942 1,422,653 90,615,864
----------- ------------ ----------- ------------
NET INCREASE.... $13,741,500 $100,520,868 $18,489,979 $107,554,999
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
<FN>
- ------------------
* Net of $158,871, $98,210, $958, $453,445, $675,304, $157,967 and $16,912,
foreign withholding tax, respectively.
** Net of $1,158 foreign withholding tax.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND EUROPEAN PACIFIC
GROWTH GROWTH GROWTH GROWTH GROWTH EQUITY STRATEGIST
------------ ----------- ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest (Note 3)....... $ 2,345,394 $ 51,889 $ 58,190 $ 386,924 $ 200,050** $ 1,586,697 $20,834,531
Dividends............... 21,530,514* 748,774* 5,143,688* 3,695,825* 2,014,994* 2,625,639* 838,822
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL INCOME........ 23,875,908 800,663 5,201,878 4,082,749 2,215,044 4,212,336 21,673,353
------------ ----------- ----------- ----------- ------------ ----------- -----------
EXPENSES
Investment management
fee................... 4,179,067 362,068 1,254,908 1,686,856 828,671 1,393,980 1,952,643
Transfer agent fees and
expenses.............. 500 500 500 500 500 500 500
Shareholder reports and
notices............... 50,772 2,082 13,106 11,535 7,533 19,594 27,512
Professional fees....... 31,346 26,043 33,263 23,519 33,150 30,950 36,430
Trustees' fees and
expenses.............. 6,543 590 817 2,099 730 3,886 3,880
Custodian fees.......... 51,181 15,460 170,145 236,456 319,038 51,675 15,730
Other................... 4,110 6,493 -- 7,292 3,425 3,142 3,256
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL EXPENSES...... 4,323,519 413,236 1,472,739 1,968,257 1,193,047 1,503,727 2,039,951
------------ ----------- ----------- ----------- ------------ ----------- -----------
NET INVESTMENT
INCOME........ 19,552,389 387,427 3,729,139 2,114,492 1,021,997 2,708,609 19,633,402
------------ ----------- ----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on:
Investments............. 25,514,561 2,153,798 6,243,149 11,970,959 (4,022,048) 66,181,855 4,287,366
Foreign exchange
transactions.......... -- -- 57,088 (974,238) 1,261,672 -- --
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL GAIN (LOSS)... 25,514,561 2,153,798 6,300,237 10,996,721 (2,760,376) 66,181,855 4,287,366
------------ ----------- ----------- ----------- ------------ ----------- -----------
Net change in unrealized
appreciation/depreciation
on:
Investments (Note 3).... 170,908,947 13,237,372 23,343,108 24,666,861 6,496,888 28,684,738 10,997,160
Translation of forward
foreign currency
contracts, other
assets and liabilities
denominated in foreign
currencies............ -- -- (1,429) (28,116) (3,754) -- --
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL APPRECIATION
(DEPRECIATION).... 170,908,947 13,237,372 23,341,679 24,638,745 6,493,134 28,684,738 10,997,160
------------ ----------- ----------- ----------- ------------ ----------- -----------
NET GAIN............ 196,423,508 15,391,170 29,641,916 35,635,466 3,732,758 94,866,593 15,284,526
------------ ----------- ----------- ----------- ------------ ----------- -----------
NET INCREASE.... $215,975,897 $15,778,597 $33,371,055 $37,749,958 $ 4,754,755 $97,575,202 $34,917,928
------------ ----------- ----------- ----------- ------------ ----------- -----------
------------ ----------- ----------- ----------- ------------ ----------- -----------
</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
------------------------------- -------------------------------
1995 1994 1995 1994
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 13,741,500 $ 7,923,278 $ 32,845,926 $ 32,040,580
Net realized gain
(loss)................ -- -- 14,651,610 (38,500,832)
Net change in unrealized
appreciation/depreciation.. -- -- 53,023,332 (28,248,118)
-------------- -------------- -------------- --------------
Net increase
(decrease)........ 13,741,500 7,923,278 100,520,868 (34,708,370)
-------------- -------------- -------------- --------------
Dividends and
distributions from:
Net investment income... (13,741,498) (7,923,343) (32,322,904) (31,956,022)
Net realized gain....... -- -- -- (8,412,812)
In excess of net
investment income..... -- -- -- --
-------------- -------------- -------------- --------------
Total............... (13,741,498) (7,923,343) (32,322,904) (40,368,834)
-------------- -------------- -------------- --------------
Transactions in shares of
beneficial interest:
Net proceeds from
sales................. 96,881,194 243,270,066 36,146,570 62,213,515
Reinvestment of
dividends and
distributions......... 13,741,498 7,923,343 32,322,904 40,368,834
Cost of shares
repurchased........... (129,460,561) (112,493,978) (30,993,795) (100,246,764)
-------------- -------------- -------------- --------------
Net increase
(decrease)........ (18,837,869) 138,699,431 37,475,679 2,335,585
-------------- -------------- -------------- --------------
Total increase
(decrease)........ (18,837,867) 138,699,366 105,673,643 (72,741,619)
NET ASSETS:
Beginning of period....... 268,624,453 129,925,087 414,904,912 487,646,531
-------------- -------------- -------------- --------------
END OF PERIOD............. $ 249,786,586 $ 268,624,453 $ 520,578,555 $ 414,904,912
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
Undistributed Net Investment
Income.................... $ 22 $ 20 $ 608,166 $ 85,136
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
SHARES ISSUED AND
REPURCHASED:
Sold...................... 96,881,194 243,270,066 3,515,633 5,844,176
Issued in reinvestment of
dividends and
distributions........... 13,741,498 7,923,343 3,154,028 4,051,038
Repurchased............... (129,460,561) (112,493,978) (3,077,582) (10,177,416)
-------------- -------------- -------------- --------------
Net increase (decrease)... (18,837,869) 138,699,431 3,592,079 (282,202)
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD UTILITIES DIVIDEND GROWTH
----------------------------- ----------------------------- -----------------------------
1995 1994 1995 1994 1995 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 17,067,326 $ 13,505,893 $ 16,939,135 $ 18,140,133 $ 19,552,389 $ 17,272,310
Net realized gain
(loss)................ (1,098,358) (5,517,509) 3,776,681 (2,172,266) 25,514,561 12,620,382
Net change in unrealized
appreciation/depreciation.. 2,521,011 (11,772,750) 86,839,183 (59,919,164) 170,908,947 (48,245,643)
------------- ------------- ------------- ------------- ------------- -------------
Net increase
(decrease)........ 18,489,979 (3,784,366) 107,554,999 (43,951,297) 215,975,897 (18,352,951)
------------- ------------- ------------- ------------- ------------- -------------
Dividends and
distributions from:
Net investment income... (16,648,733) (13,464,211) (18,544,715) (17,878,751) (20,821,765) (16,780,838)
Net realized gain....... -- -- -- (2,681,110) (12,652,636) --
In excess of net
investment income..... -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total............... (16,648,733) (13,464,211) (18,544,715) (20,559,861) (33,474,401) (16,780,838)
------------- ------------- ------------- ------------- ------------- -------------
Transactions in shares of
beneficial interest:
Net proceeds from
sales................. 36,566,043 45,115,268 25,533,783 48,664,778 101,006,743 142,834,351
Reinvestment of
dividends and
distributions......... 16,648,733 13,464,211 18,544,715 20,559,861 33,474,401 16,780,838
Cost of shares
repurchased........... (12,680,679) (19,597,061) (36,430,389) (113,235,763) (24,518,137) (34,674,217)
------------- ------------- ------------- ------------- ------------- -------------
Net increase
(decrease)........ 40,534,097 38,982,418 7,648,109 (44,011,124) 109,963,007 124,940,972
------------- ------------- ------------- ------------- ------------- -------------
Total increase
(decrease)........ 42,375,343 21,733,841 96,658,393 (108,522,282) 292,464,503 89,807,183
NET ASSETS:
Beginning of period....... 111,934,242 90,200,401 382,411,752 490,934,034 572,952,323 483,145,140
------------- ------------- ------------- ------------- ------------- -------------
END OF PERIOD............. $ 154,309,585 $ 111,934,242 $ 479,070,145 $ 382,411,752 $ 865,416,826 $ 572,952,323
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
Undistributed Net Investment
Income.................... $ 494,390 $ 75,797 $ 5,421 $ 1,610,911 $ 17,214 $ 1,286,590
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
SHARES ISSUED AND
REPURCHASED:
Sold...................... 5,834,627 6,446,698 1,947,513 3,765,654 7,140,373 11,460,639
Issued in reinvestment of
dividends and
distributions........... 2,658,293 2,019,283 1,407,989 1,653,504 2,413,931 1,370,617
Repurchased............... (2,029,027) (2,991,013) (2,821,228) (9,048,385) (1,815,800) (2,857,510)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease)... 6,463,893 5,474,968 534,274 (3,629,227) 7,738,504 9,973,746
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
CAPITAL GROWTH GLOBAL DIVIDEND GROWTH
------------------------------- -----------------------------
1995 1994 1995 1994 (1)
------------ ---------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 387,427 $ 425,853 $ 3,729,139 $ 1,847,100
Net realized gain
(loss)................ 2,153,798 (927,479) 6,300,237 16,433
Net change in unrealized
appreciation/depreciation... 13,237,372 (158,687) 23,341,679 (3,053,322)
------------ ---------------- ------------- -------------
Net increase
(decrease)........ 15,778,597 (660,313) 33,371,055 (1,189,789)
------------ ---------------- ------------- -------------
Dividends and
distributions from:
Net investment income... (310,895) (431,431) (4,044,117) (1,516,017)
Net realized gain....... -- (137,199) (222,586) --
In excess of net
investment income..... -- -- -- --
------------ ---------------- ------------- -------------
Total............... (310,895) (568,630) (4,266,703) (1,516,017)
------------ ---------------- ------------- -------------
Transactions in shares of
beneficial interest:
Net proceeds from
sales................. 14,176,359 8,659,150 41,054,512 142,414,894
Reinvestment of
dividends and
distributions......... 310,895 568,630 4,266,703 1,516,017
Cost of shares
repurchased........... (8,675,047) (12,592,414) (7,173,082) (2,739,066)
------------ ---------------- ------------- -------------
Net increase
(decrease)........ 5,812,207 (3,364,634) 38,148,133 141,191,845
------------ ---------------- ------------- -------------
Total increase
(decrease)........ 21,279,909 (4,593,577) 67,252,485 138,486,039
NET ASSETS:
Beginning of period....... 45,715,261 50,308,838 138,486,039 --
------------ ---------------- ------------- -------------
END OF PERIOD............. $66,995,170 $ 45,715,261 $ 205,738,524 $ 138,486,039
------------ ---------------- ------------- -------------
------------ ---------------- ------------- -------------
Undistributed Net Investment
Income.................... $ 131,980 $ 55,472 $ 73,685 $ 326,336
------------ ---------------- ------------- -------------
------------ ---------------- ------------- -------------
SHARES ISSUED AND
REPURCHASED:
Sold...................... 1,056,301 2,077,229 3,795,718 14,227,418
Issued in reinvestment of
dividends and
distributions........... 24,762 29,150 397,706 152,929
Repurchased............... (649,418) (1,374,613) (688,539) (280,638)
------------ ---------------- ------------- -------------
Net increase (decrease)... 431,645 731,766 3,504,885 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>
EUROPEAN GROWTH PACIFIC GROWTH EQUITY STRATEGIST
-------------------------- ------------------------ -------------------------- ------------
1995 1994 1995 1994 (1) 1995 1994 1995
------------ ------------ ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 2,114,492 $ 1,957,796 $ 1,021,997 $ 231,524 $ 2,708,609 $ 2,571,328 $ 19,633,402
Net realized gain
(loss)................ 10,996,721 5,276,370 (2,760,376) (740,879) 66,181,855 (10,255,042) 4,287,366
Net change in unrealized
appreciation/depreciation... 24,638,745 1,187,264 6,493,134 (2,836,782) 28,684,738 (4,038,554) 10,997,160
------------ ------------ ----------- ----------- ------------ ------------ ------------
Net increase
(decrease)........ 37,749,958 8,421,430 4,754,755 (3,346,137) 97,575,202 (11,722,268) 34,917,928
------------ ------------ ----------- ----------- ------------ ------------ ------------
Dividends and
distributions from:
Net investment income... (1,774,678) (1,332,400) (719,960) -- (3,058,144) (2,393,925) (21,267,198)
Net realized gain....... (5,391,962) (4,011,038) (15,252) (236,443) -- (16,442,181) (13,902,986)
In excess of net
investment income..... (210,717) -- -- -- -- -- --
------------ ------------ ----------- ----------- ------------ ------------ ------------
Total............... (7,377,357) (5,343,438) (735,212) (236,443) (3,058,144) (18,836,106) (35,170,184)
------------ ------------ ----------- ----------- ------------ ------------ ------------
Transactions in shares of
beneficial interest:
Net proceeds from
sales................. 18,351,213 79,498,127 33,260,368 81,416,561 60,875,983 84,340,284 24,116,300
Reinvestment of
dividends and
distributions......... 7,377,357 5,343,438 735,212 236,443 3,058,144 18,836,106 35,170,184
Cost of shares
repurchased........... (20,019,201) (14,934,507) (15,110,167) (2,645,085) (23,961,072) (30,156,623) (63,215,404)
------------ ------------ ----------- ----------- ------------ ------------ ------------
Net increase
(decrease)........ 5,709,369 69,907,058 18,885,413 79,007,919 39,973,055 73,019,767 (3,928,920)
------------ ------------ ----------- ----------- ------------ ------------ ------------
Total increase
(decrease)........ 36,081,970 72,985,050 22,904,956 75,425,339 134,490,113 42,461,393 (4,181,176)
NET ASSETS:
Beginning of period....... 152,037,439 79,052,389 75,425,339 -- 225,289,257 182,827,864 392,760,345
------------ ------------ ----------- ----------- ------------ ------------ ------------
END OF PERIOD............. $188,119,409 $152,037,439 $98,330,295 $75,425,339 $359,779,370 $225,289,257 $388,579,169
------------ ------------ ----------- ----------- ------------ ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------ ------------
Undistributed Net Investment
Income.................... $ (210,717) $ 18,459 $ 1,563,457 $ (152,940) $ 21,743 $ 371,545 $ 47,313
------------ ------------ ----------- ----------- ------------ ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------ ------------
SHARES ISSUED AND
REPURCHASED:
Sold...................... 1,106,630 5,461,296 3,543,683 8,401,700 2,501,214 3,984,962 1,957,299
Issued in reinvestment of
dividends and
distributions........... 454,397 385,416 79,076 25,025 136,228 965,337 2,891,755
Repurchased............... (1,268,442) (1,042,808) (1,630,781) (281,779) (1,080,135) (1,504,112) (5,160,690)
------------ ------------ ----------- ----------- ------------ ------------ ------------
Net increase (decrease)... 292,585 4,803,904 1,991,978 8,144,946 1,557,307 3,446,187 (311,636)
------------ ------------ ----------- ----------- ------------ ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------ ------------
<CAPTION>
1994
------------
<S> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 13,689,136
Net realized gain
(loss)................ 13,979,461
Net change in unrealized
appreciation/depreciation... (14,418,071)
------------
Net increase
(decrease)........ 13,250,526
------------
Dividends and
distributions from:
Net investment income... (12,720,041)
Net realized gain....... (6,891,484)
In excess of net
investment income..... --
------------
Total............... (19,611,525)
------------
Transactions in shares of
beneficial interest:
Net proceeds from
sales................. 110,230,754
Reinvestment of
dividends and
distributions......... 19,611,525
Cost of shares
repurchased........... (18,223,284)
------------
Net increase
(decrease)........ 111,618,995
------------
Total increase
(decrease)........ 105,257,996
NET ASSETS:
Beginning of period....... 287,502,349
------------
END OF PERIOD............. $392,760,345
------------
------------
Undistributed Net Investment
Income.................... $ 1,680,979
------------
------------
SHARES ISSUED AND
REPURCHASED:
Sold...................... 8,741,963
Issued in reinvestment of
dividends and
distributions........... 1,575,130
Repurchased............... (1,450,674)
------------
Net increase (decrease)... 8,866,419
------------
------------
</TABLE>
<PAGE>
Dean Witter Variable Investment Series
Notes to Financial Statements DECEMBER 31, 1995
- --------------------------------------------------------------------------------
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 Fund
are owned by (1) Northbrook Life Insurance Company to fund benefits under
certain flexible premium variable annuity contracts; (2) Allstate Life Insurance
Company of New York to fund benefits under certain flexible premium deferred
variable annuity contracts; and (3) Paragon Life Insurance Company to fund
benefits under certain flexible premium variable life insurance contracts issued
to certain employees of Dean Witter Discover & Co., an affiliate of Dean Witter
InterCapital Inc. (the "Investment Manager").
The Fund, organized on February 25, 1983 as a Massachusetts business trust,
consists of eleven Portfolios ("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
Strategist +................... March 1, 1987
</TABLE>
- ------------
+ Formerly known as Dean Witter Variable Investment Series -- Managed Assets.
The investment objectives of each Portfolio are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT OBJECTIVE
<S> <C>
Money Market Seeks high current income, preservation of capital and
liquidity by investing in short-term money market
instruments.
Quality Seeks, as its primary objective, to earn a high level
Income of current income and, as a secondary objective,
Plus capital appreciation, but only when consistent with its
primary objective, by investing primarily in U.S.
Government securities and higher-rated fixed income
securities and by writing covered options on such
securities.
High Yield Seeks, as its primary objective, to earn a high level
of current income and, as a secondary objective,
capital appreciation, but only when consistent with its
primary objective, by investing primarily in
lower-rated fixed income securities.
Utilities Seeks to provide current income and long-term growth of
income and capital by investing primarily in equity and
fixed income securities of companies engaged in the
public utilities industry.
Dividend Seeks to provide reasonable current income and
Growth long-term growth of income and capital by investing
primarily in common stock of companies with a record of
paying dividends and the potential for increasing
dividends.
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT OBJECTIVE
<S> <C>
Capital Seeks long-term capital growth by investing primarily
Growth in common stocks.
Global Dividend Seeks to provide reasonable current income and
Growth long-term growth of income and capital by investing
primarily in common stocks of companies, issued by
issuers worldwide, with a record of paying dividends
and the potential for increasing dividends.
European Growth Seeks to maximize the capital appreciation of its
investments by investing primarily in securities issued
by issuers located in Europe.
Pacific Growth Seeks to maximize the capital appreciation of its
investments by investing primarily in securities issued
by issuers located in Asia, Australia and New Zealand.
Equity Seeks, as its primary objective, capital growth through
investments in common stock and, as a secondary
objective, income, but only when consistent with its
primary objective.
Strategist Seeks a high total investment return through a fully
managed investment policy utilizing equity securities,
investment grade fixed income and money market
securities, writing covered options on such securities
and the collateralized sale of stock index options.
</TABLE>
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies:
A. VALUATION OF INVESTMENTS--Money Market: Securities are valued at
amortized cost which approximates market value. All remaining Portfolios:
(1) an equity security listed or traded on the New York, American or other
domestic or foreign stock exchange are valued at its latest sale price on
that exchange prior to the time when assets are valued; if there were no
sales that day, the security is valued at the latest bid price (in cases
where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market by the Trustees);
(2) all other portfolio securities for which over-the-counter market
quotations are readily available are valued at the latest available bid
price prior to the time of valuation; (3) listed options 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, if available, in
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
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 and other distributions are recorded on the ex-
dividend date except for certain dividends on foreign securities which are
recorded as soon as the Fund is informed after the ex-dividend date.
Interest income is accrued daily except where collection is not expected.
The Money Market Portfolio amortizes premiums and accretes discounts on
securities owned; gains and losses realized upon the sale of securities are
based on amortized cost. Discounts for all other Portfolios are accreted
over the life of the respective securities.
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.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
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 gain/loss on foreign
exchange transactions. The Portfolios record realized gains or losses on
delivery of the currency or at the time the forward contract is extinguished
(compensated) by entering into a closing transaction prior to delivery.
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 or
equally among the Portfolios.
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS--Pursuant to an Investment
Management Agreement, the Fund pays a management fee, accrued daily and payable
monthly, by applying the following annual rates to each Portfolios' net assets
determined at the close of each business day: Money Market, High Yield, Equity
and Strategist - 0.50%; Dividend Growth - 0.625% to the portion of daily net
assets not exceeding $500 million and 0.50% to the portion of daily net assets
exceeding $500 million; Utilities - 0.65% to the portion of daily net assets not
exceeding $500 million and 0.55% to the portion of daily net assets exceeding
$500 million; Capital Growth - 0.65%; Global Dividend Growth - 0.75%; European
Growth and Pacific Growth - 1.0% to the daily net assets. Effective April 21,
1995, Quality Income Plus calculates the management fee at the following rates:
0.50% to the portion of daily net assets not exceeding $500 million and 0.45% to
the portion of daily net assets exceeding $500.
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.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
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.
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, 1995
were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
---------------------------------- --------------------------------------
PURCHASES SALES/MATURITIES PURCHASES SALES/MATURITIES
---------------- ---------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Money Market.......................... $ 191,451,010 $ 204,596,000 $ 1,432,802,780 $ 1,451,277,754
Quality Income Plus................... 469,037,541 497,959,955 308,746,010 245,973,402
High Yield............................ -- -- 108,752,685 69,113,723
Utilities............................. -- -- 52,068,376 61,282,836
Dividend Growth....................... 5,436,094 10,000,000 258,341,786 160,351,235
Capital Growth........................ 109,350 301,842 24,654,737 18,595,411
Global Dividend Growth................ -- -- 128,773,152 91,090,901
European Growth....................... -- -- 110,557,473 117,290,842
Pacific Growth........................ -- -- 59,480,521 42,582,989
Equity................................ 101,348,479 69,563,350 690,869,624 654,771,649
Strategist............................ 179,565,155 137,018,198 485,032,514 172,462,924
</TABLE>
Included in the aforementioned purchases of portfolio securities of the
Equity Portfolio are purchases of equity securities of The Allstate Corporation,
the parent company of Northbrook Life Insurance Company and Allstate Life
Insurance Company of New York, affiliates of the Fund, in the amount of
$1,649,874.
During the year ended December 31, 1995, Quality Income Plus purchased and
subsequently sold debt securities issued by Citizens Utilities Company, an
affiliate of the Fund by virtue of a common Trustee, realizing a gain and
interest income in the amount of $106,280 and $40,444, respectively.
For the year ended December 31, 1995, the following Portfolios incurred
commissions with Dean Witter Reynolds Inc. ("DWR"), an affiliate of the
Investment Manager, for portfolio transactions executed on behalf of the
Portfolio:
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND
UTILITIES GROWTH GROWTH GROWTH EQUITY STRATEGIST
--------- ----------- --------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Commissions............................ $ 6,500 $ 216,308 $ 32,841 $ 50,294 $ 192,565 $ 80,425
--------- ----------- --------- --------- ----------- ---------
--------- ----------- --------- --------- ----------- ---------
</TABLE>
For the year ended December 31, 1995, Pacific Growth Portfolio incurred
brokerage commissions of $38,904 with affiliates of Morgan Grenfell for
portfolio transactions executed.
Included in the payable for investments purchased for unsettled trades with
DWR for Global Dividend Growth and Capital Growth are $369,250 and $89,009,
respectively.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent.
The Fund has an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement. Benefits
under this plan are based on years of service and compensation during the last
five years of service. Aggregate pension costs for the year ended December 31,
1995 included in Trustees' fees and expenses in the Statement of Operations and
the accrued pension liability included in accrued expenses in the Statement of
Assets and Liabilities are as follows:
<TABLE>
<CAPTION>
QUALITY
MONEY INCOME HIGH DIVIDEND CAPITAL
MARKET PLUS YIELD UTILITIES GROWTH GROWTH
--------- --------- --------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Pension Cost............................ $ 814 $ 1,517 $ 440 $ 1,380 $ 2,319 $ 182
--------- --------- --------- --------- ----------- ---------
--------- --------- --------- --------- ----------- ---------
Accrued Pension Liability......................... $ 11,385 $ 7,614 $ 3,440 $ 5,073 $ 7,908 $ 344
--------- --------- --------- --------- ----------- ---------
--------- --------- --------- --------- ----------- ---------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND EUROPEAN PACIFIC
GROWTH GROWTH GROWTH EQUITY STRATEGIST
----------- ----------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Aggregate Pension Cost...................................... $ 546 $ 550 $ 270 $ 910 $ 1,274
----------- ----------- --------- --------- -----------
----------- ----------- --------- --------- -----------
Accrued Pension Liability................................... $ 527 $ 807 $ 267 $ 5,188 $ 8,159
----------- ----------- --------- --------- -----------
----------- ----------- --------- --------- -----------
</TABLE>
4. FEDERAL INCOME TAX STATUS--At December 31, 1995, the following Portfolios
had an approximate net capital loss carryover 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 2003 TOTAL
- ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Quality Income Plus........... -- -- -- -- -- -- $ 22,894 -- $ 22,894
High Yield.................... $ 7,297 $ 10,694 $ 34,291 $ 7,336 $ 3,057 $ 4,736 3,256 $ 3,311 73,978
Pacific Growth................ -- -- -- -- -- -- -- 1,398 1,398
</TABLE>
During the year ended December 31, 1995, the following Portfolios utilized
approximate net capital loss carryovers: Quality Income Plus - $9,908,000;
Utilities - $2,371,000; Capital Growth - $1,105,000; Equity - $6,496,000.
Net capital and net 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 post-October losses during fiscal 1995: Global Dividend Growth -
$5,000; European Growth - $633,000; Pacific Growth - $2,310,000.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 1995, the primary reason(s) for significant
temporary/permanent book/tax differences were as follows:
<TABLE>
<CAPTION>
TEMPORARY DIFFERENCES PERMANENT DIFFERENCES
----------------------------- ---------------------
POST-OCTOBER LOSS DEFERRALS FOREIGN CURRENCY
LOSSES FROM WASH SALES GAINS/LOSSES
------------ --------------- ---------------------
<S> <C> <C> <C>
Quality Income Plus.......................................... -
High Yield................................................... -
Utilities.................................................... -
Dividend Growth.............................................. -
Capital Growth............................................... -
Global Dividend Growth....................................... - - -
European Growth.............................................. - - -
Pacific Growth............................................... - - -
Equity....................................................... -
</TABLE>
Additionally, Global Dividend Growth, European Growth and Pacific Growth
Portfolios had temporary differences attributable to income from the
mark-to-market of passive foreign investment companies.
To reflect reclassifications arising from permanent book/tax differences for
the year ended December 31, 1995, the following accounts were charged
(credited):
<TABLE>
<CAPTION>
ACCUMULATED
UNDISTRIBUTED
NET INVESTMENT INCOME/
DISTRIBUTIONS IN EXCESS ACCUMULATED UNDISTRIBUTED
OF NET REALIZED GAIN/ACCUMULATED
NET INVESTMENT INCOME NET REALIZED LOSS
----------------------- -----------------------------
<S> <C> <C>
Global Dividend Growth................................... $ (62,327) $ 62,327
European Growth.......................................... 358,273 (358,273)
Pacific Growth........................................... (1,414,360) 1,414,360
</TABLE>
5. PURPOSES OF AND RISKS 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
foreign currency exposure associated with foreign currency denominated
securities. Such 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, 1995, there were outstanding forward contracts used to
facilitate settlement of foreign currency denominated portfolio transactions.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Portfolios bear the
risk of an unfavorable change in the foreign exchange rates underlying the
forward contracts. Risks may also arise upon entering into these contracts from
the potential inability of the counterparties to meet the terms of their
contracts.
At December 31, 1995, the European Growth and Pacific Growth Portfolios'
cash balance consisted principally of interest bearing deposits with Chase
Manhattan Bank N.A., the Fund's custodian.
<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
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)
1995 1.00 0.055 -- 0.055 (0.055) -- (0.055)
QUALITY INCOME PLUS
1987(a) 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)
1995 9.45 0.72 1.50 2.22 (0.71) -- (0.71)
HIGH YIELD
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)
1995 6.16 0.80 0.08 0.88 (0.78) -- (0.78)
UTILITIES
1990(b) 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)
1995 11.92 0.53 2.81 3.34 (0.58) -- (0.58)
</TABLE>
- ------------
Commencement of operations:
(a) March 1, 1987.
(b) 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%.
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
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
1995 1.00 5.66 249,787 0.53 5.52 N/A
QUALITY INCOME PLUS
1987(a) 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
1995 10.96 24.30 520,579 0.54 7.07 162
HIGH YIELD
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
1995 6.26 14.93 154,310 0.54 12.67 58
UTILITIES
1990(b) 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
1995 14.68 28.65 479,070 0.68 4.00 13
</TABLE>
<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(b) $ 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)
1995 11.99 0.38 3.89 4.27 (0.41) (0.26) (0.67)
CAPITAL GROWTH
1991(c) 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)
1995 11.52 0.10 3.68 3.78 (0.08) -- (0.08)
GLOBAL DIVIDEND GROWTH
1994(d) 10.00 0.23 (0.20) 0.03 (0.21) -- (0.21)
1995 9.82 0.24 1.90 2.14 (0.26) (0.01) (0.27)
EUROPEAN GROWTH
1991(c) 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)
1995 14.56 0.20 3.50 3.70 (0.19)+ (0.54) (0.73)
PACIFIC GROWTH
1994(d) 10.00 0.07 (0.74) (0.67) -- (0.07) (0.07)
1995 9.26 0.12 0.41 0.53 (0.09) -- (0.09)
EQUITY
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)
1995 19.25 0.22 7.92 8.14 (0.25) -- (0.25)
STRATEGIST
1987(a) 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)
1995 12.45 0.62 0.49 1.11 (0.67) (0.44) (1.11)
</TABLE>
- ------------
Commencement of operations:
(a) March 1, 1987.
(b) March 1, 1990.
(c) March 1, 1991.
(d) February 23, 1994.
+ Includes distributions in excess of net investment income of $0.02.
(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 ratios 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 periods February 23, 1994 through May 12, 1994 for
Global Dividend Growth and February 23, 1994 through June 30, 1994 for
Pacific Growth, the ratios of expenses to average net assets would have
been 0.97% for Global Growth and 1.40% for Pacific Growth.
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(b) $ 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
1995 15.59 36.38 865,417 0.61 2.75 24
CAPITAL GROWTH
1991(c) 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
1995 15.22 32.92 66,995 0.74 0.70 34
GLOBAL DIVIDEND GROWTH
1994(d) 9.82 0.27(1) 138,486 0.87(2)(6) 2.62(2) 20(1)
1995 11.69 22.14 205,739 0.88 2.23 55
EUROPEAN GROWTH
1991(c) 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
1995 17.53 25.89 188,119 1.17 1.25 69
PACIFIC GROWTH
1994(d) 9.26 (6.73)(1) 75,425 1.00(2)(6) 0.56(2) 22(1)
1995 9.70 5.74 98,330 1.44 1.23 53
EQUITY
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
1995 27.14 42.53 359,779 0.54 0.97 269
STRATEGIST
1987(a) 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
1995 12.45 9.48 388,579 0.52 5.03 329
</TABLE>
<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 Strategist Portfolio
(constituting Dean Witter Variable Investment Series, hereafter referred to as
the "Fund") at December 31, 1995, the results of each of their operations for
the year 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 at December 31, 1995 by
correspondence with the custodians and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 15, 1996
1995 FEDERAL INCOME TAX NOTICE (UNAUDITED)
During the year ended December 31, 1995, the Fund paid to
shareholders long-term capital gains per share as follows:
<TABLE>
<CAPTION>
DIVIDEND EUROPEAN
GROWTH GROWTH STRATEGIST
- ----------- ----------- -----------
<S> <C> <C>
$ 0.26 $ 0.08 $ 0.28
----- ----- -----
----- ----- -----
</TABLE>
<PAGE>
Trustees
------------------------------------------------------
<TABLE>
<S> <C>
Michael Bozic Dr. Manuel H. Johnson
Charles A. Fiumefreddo Paul Kolton
Edwin J. Garn Michael E. Nugent
John R. Haire Philip J. Purcell
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-Adviser
(European Growth and Pacific Growth Portfolio)
------------------------------------------------------
Morgan Grenfell Investment Services Limited
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
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
40915A
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
DEAN WITTER VARIABLE CAPITAL GROWTH PORTFOLIO
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
- -------------------------------------------------------------------------------
<S> <C> <C>
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 $13,876
- -------------------------------------------------------------------------------
December 31, 1995 $15,929(3) $19,089
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
--------------------------------------
32.92 (1) 10.11 (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 Standard & Poor's 500 Composite Stock Price Index (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 performance of the index
does not include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
- -------------------------------------------------------------------------------
<S> <C> <C>
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 $16,016
- -------------------------------------------------------------------------------
December 31, 1995 $19,216(3) $22,034
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
--------------------------------------
36.38 (1) 15.82 (1) 11.85 (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 Standard & Poor's 500 Composite Stock Price Index (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 performance of the index
does not include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
- -------------------------------------------------------------------------------
<S> <C> <C>
December 31, 1985 $10,000 $10,000
- -------------------------------------------------------------------------------
December 31, 1986 $11,685 $11,867
- -------------------------------------------------------------------------------
December 31, 1987 $10,957 $12,490
- -------------------------------------------------------------------------------
December 31, 1988 $12,035 $14,557
- -------------------------------------------------------------------------------
December 31, 1989 $14,301 $19,162
- -------------------------------------------------------------------------------
December 31, 1990 $13,784 $18,569
- -------------------------------------------------------------------------------
December 31, 1991 $21,923 $24,215
- -------------------------------------------------------------------------------
December 31, 1992 $21,934 $26,058
- -------------------------------------------------------------------------------
December 31, 1993 $26,260 $28,680
- -------------------------------------------------------------------------------
December 31, 1994 $24,969 $29,058
- -------------------------------------------------------------------------------
December 31, 1995 $35,590(3) $39,975
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
--------------------------------------
42.53 (1) 20.89 (1) 13.54
--------------------------------------
--------------------------------------
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 Standard & Poor's 500 Composite Stock Price Index (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 performance of the index
does not include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL MSCI WORLD INDEX
- --------------------------------------------------------------------------
<S> <C> <C>
March 1, 1991 $10,000 $10,000
- --------------------------------------------------------------------------
December 31, 1991 $10,134 $10,399
- --------------------------------------------------------------------------
December 31, 1992 $10,539 $ 9,656
- --------------------------------------------------------------------------
December 31, 1993 $14,847 $11,625
- --------------------------------------------------------------------------
December 31, 1994 $16,089 $12,016
- --------------------------------------------------------------------------
December 31, 1995 $20,254 (3) $14,263
- --------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
--------------------------------------
25.89 (1) 15.72 (1)
--------------------------------------
--------------------------------------
Fund MSCI WORLD INDEX (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. It does not reflect the deduction of any
insurance expenses, and 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.
The Index is unmanaged and should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL MSCI WORLD IX
-------------------------------------------------------------------
<S> <C> <C>
February 23, 1994 $10,000 $10,000
-------------------------------------------------------------------
December 31, 1994 $10,027 $ 9,925
-------------------------------------------------------------------
December 31, 1995 $12,247 (3) $11,781
-------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR LIFE OF FUND
--------------------------------------
22.14 (1) 11.57 (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.
The Index is unmanaged and should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL LEHMAN
- --------------------------------------------------------------------------
<S> <C> <C>
December 31, 1985 $10,000 $10,000
- --------------------------------------------------------------------------
December 31, 1986 $11,813 $11,658
- --------------------------------------------------------------------------
December 31, 1987 $11,457 $11,972
- --------------------------------------------------------------------------
December 31, 1988 $12,698 $13,116
- --------------------------------------------------------------------------
December 31, 1989 $11,118 $14,757
- --------------------------------------------------------------------------
December 31, 1990 $ 8,278 $15,569
- --------------------------------------------------------------------------
December 31, 1991 $13,091 $18,783
- --------------------------------------------------------------------------
December 31, 1992 $15,493 $20,538
- --------------------------------------------------------------------------
December 31, 1993 $19,224 $23,174
- --------------------------------------------------------------------------
December 31, 1994 $18,749 $22,376
- --------------------------------------------------------------------------
December 31, 1995 $21,549(3) $27,238
- --------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
--------------------------------------
14.93 (1) 21.09 (1) 7.98 (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. The Index does not include any expenses, fees or charges. The
Index is unmanaged and should not be considered an investment.
(3) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL MSCI WORLD IX
---------------------------------------------------------------------
<S> <C> <C>
February 23, 1994 $10,000 $10,000
---------------------------------------------------------------------
December 31, 1994 $ 9,327 $ 9,925
---------------------------------------------------------------------
December 31, 1995 $ 9,862 (3) $11,781
---------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR LIFE OF FUND
--------------------------------------
5.74 (1) -0.75 (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.
The Index is unmanaged and should not be considered an investment.
(3) Closing value on December 31, 1995 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE QUALITY INCOME PLUS PORTFOLIO
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL LEHMAN
- -----------------------------------------------------------------------------
<S> <C> <C>
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 $18,066
- -----------------------------------------------------------------------------
December 31, 1995 $22,371 (3) $21,404
- -----------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
--------------------------------------
24.30(1) 11.01 (1) 9.55 (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 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.
The performance of the index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an
investment.
(3) Closing value on December 31, 1995 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
<PAGE>
DEAN WITTER VARIABLE STRATEGIST PORTFOLIO
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500 LEHMAN IX
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
March 4, 1987 $10,000 $10,000 $10,000
- ----------------------------------------------------------------------------------------------
December 31, 1987 $10,123 $ 8,787 $10,080
- ----------------------------------------------------------------------------------------------
December 31, 1988 $11,418 $10,241 $10,845
- ----------------------------------------------------------------------------------------------
December 31, 1989 $12,637 $13,481 $12,388
- ----------------------------------------------------------------------------------------------
December 31, 1990 $12,833 $13,064 $13,414
- ----------------------------------------------------------------------------------------------
December 31, 1991 $16,460 $17,036 $15,578
- ----------------------------------------------------------------------------------------------
December 31, 1992 $17,651 $18,332 $16,759
- ----------------------------------------------------------------------------------------------
December 31, 1993 $19,484 $20,178 $18,607
- ----------------------------------------------------------------------------------------------
December 31, 1994 $20,251 $20,443 $17,954
- ----------------------------------------------------------------------------------------------
December 31, 1995 $22,154(4) $28,123 $21,409
- ----------------------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
--------------------------------------
9.40 (1) 11.54 (1) 9.43 (1)
--------------------------------------
--------------------------------------
Fund S&P 500 (2) Lehman (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 (NAV). It does not reflect the deduction of
insurance expenses, an annual contract maintenance fee, or surrender
charges.
(2) The Standard & Poor's 500 Composite Stock Price Index (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 performance of the index does not
include any expenses, fees or charges. The Index is unmanaged and should
not be considered an investment.
(3) The Lehman Brothers Government/Corporate Bond Index tracks the performance
of government and corporate obligations, including U.S. government agency
and U.S. treasury securities and corporate and yankee bonds, with
maturities of one to ten years. The performance of the index does not
include any expenses, fees or charges. The Index is unmanaged and should
not be considered an investment.
(4) Closing value on December 31, 1995 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
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
- ----------------------------------------------------------------------------
<S> <C> <C>
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 $16,016
- ----------------------------------------------------------------------------
December 31, 1995 $19,220(3) $22,034
- ----------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
--------------------------------------
28.65 (1) 12.96 (1) 11.85 (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 performance
of the index does not include any expenses, fees or charges. The
Index is unmanaged and should not be considered an investment.
(3) Closing value on December 31, 1995 for the underlying fund. This figure
does not reflect the deduction of any account fees or sales charges.
