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DEAN WITTER VARIABLE INVESTMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
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Equity markets continued to perform well through mid year, given the
competitive position and strong profitability of American industry. Against this
backdrop, the Standard & Poor's 500 Composite Stock Price Index (S&P 500) was up
10.10 percent for the six months ended June 30, 1996.
Notwithstanding the recent backup in U.S. interest rates, the primarily
bullish trend of equity prices is expected to remain intact until the Federal
Reserve Board moves toward a serious tightening of monetary policy. While such a
move does not appear to be on the immediate horizon, this eventuality may occur
in 1997 or 1998. The wild card continues to be the economy. Unless the economy
really picks up additional steam in the next few months, which we do not
anticipate, the Federal Reserve Board will probably remain on hold at least
until after the presidential election.
After a strong first half, the economy is expected to pause for the
remainder of the year to allow pent-up consumer and capital spending demand to
rebuild. Additionally, slowing unit demand and higher wages could pressure
corporate earnings profitability and result in a diminution in capital spending.
Following this respite, a more robust, broad-based economic rebound is expected
to unfold over the course of 1997, boosted by a simultaneous recovery in
developing and developed countries alike. Against this backdrop, commodity
cyclical groups (chemicals, paper, aluminum and machinery) and commodity
technology groups (semiconductors, semiconductor capital equipment and
computers) are poised to be the standout performers in the equity arena. These
industries are expected to be driven by very inexpensive valuations and
significantly accelerating earnings resulting from robust worldwide industrial
production and capital spending.
Stronger-than-anticipated employment reports, combined with robust housing,
automobile and retail sales, ignited inflationary fears and caused intermediate-
and long-term interest rates to edge higher. And higher food and energy costs
did little to allay the bond market's concerns. Further contributing to that
market's recent lackluster performance was investor anxiety over a possible
Federal Reserve Board tightening.
Overall, the yield on the 30-year U.S. Treasury bond increased 92 basis
points (0.92 percentage points) from the end of 1995, to 6.87 percent as of June
30, 1996. Over the same six-month period, the yield on the two-year U.S.
Treasury note increased 96 basis points, to 6.11 percent.
The first quarter of 1996 brought a change in the previous pattern of
declining money market rates. With the February employment report, which
illustrated that 705,000 new jobs had entered the market, short-term yields in
the 6- to 12-month range rose 15 to 25 basis points. At that time, many market
participants concluded that the Federal Reserve Board's monetary policy would
remain on hold.
The money markets displayed stability until about the second week of June,
when employment data for May and revisions to previous data were released. A
stronger-than-expected employment trend added further support to the argument
that the second quarter's economic growth will ultimately prove to be
unsustainable. Since then, opinion has been divided as to whether the Federal
Reserve Board would keep short-term interest rates unchanged or raise them by 25
or 50 basis points sometime during the third quarter.
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The economic environment in Europe over the six months ended June 30, 1996,
was mixed, with conditions varying from country to country. The U.K. economy
continued in a relatively robust pattern with a strengthening consumer sector
offsetting weak export and manufacturing sectors. The deutschemark-bloc
countries saw a marked slowdown in late 1995, which has continued well into
1996. A number of factors delayed a pickup in activity: general strikes in
France, which adversely affected output and consumer confidence; poor winter
weather in Germany, which severely disrupted the construction industry; and
widespread macroeconomic difficulties such as a global inventory correction and
the high cost-base nature of the German economy, which a slightly weaker
deutschemark could not offset.
As always, political developments were dominant in Europe. In Spain and
Italy there were key elections in the spring resulting in new governmental
administrations. The economic impact of these changes will not be evident for a
while, but neither gave rise to any significant currency or bond market
turbulence.
The outlook in Europe at present is for a steady economic pickup in the
second half of 1996, accelerating in 1997. Continued budgetary rigor is expected
in all countries as governments struggle to reduce deficits and prepare their
economies for possible monetary union in 1999. While this will clearly dampen
the expected recovery, interest rates are low and should help compensate
(although the interest rate cycle is expected to turn upward, possibly before
year-end). Inflation is set to remain very low.
During the period under review the markets in Europe performed well. The
political changes in Spain and Italy noted above encouraged equity investors. In
France the stock market rallied strongly from a very oversold position in late
1995, with blue chip growth stocks leading the performance. In Germany growth
stocks were strong as well, and in Switzerland the sensational merger of
Ciba-Geigy AG and Sandoz AG boosted the pharmaceutical sector's performance. The
U.K. market lagged the European averages.
Expectations of strong earnings rises in 1996 had to be scaled back as the
extent of the economic slowdown became evident, but we do still anticipate that
1996 will be the fourth successive year of rising earnings in Europe. The
outlook for 1997 is positive but will crucially depend on the scale and breadth
of the economic recovery.
The markets of the Pacific Basin generally started 1996 as they ended 1995,
with strong positive returns in January and early February during the runup to
the Chinese New Year. The principal influences on this performance were
attractive market valuations and earnings growth forecasts, renewed flows of
international liquidity to the region and lower U.S. interest rates. Hong Kong,
which performed well in 1995, continued to lead the market advance, given its
direct tie-in to U.S. monetary policy through the pegged exchange rate.
Indonesia also was particularly strong. Among the weaker markets in the region
in the first quarter were Taiwan, owing to steadily increasing tension with
China ahead of the first-ever Taiwanese presidential election in late March, and
Korea, where political unrest and concerns about an economic slowdown remained
at high levels.
Confusion at the end of the second quarter regarding the future direction of
interest rates in the United States was not expected. This, together with
further escalation in Sino-Taiwanese strains, led to a sharp pullback in
regional equity markets.
The Japanese market rose by nearly 8 percent in yen terms over the six-month
period under review, encouraged by better corporate and economic numbers and
loose monetary policy. However, much of the gain was wiped out for U.S.-
dollar-based investors as the yen slipped from 103 to the U.S. dollar to 110.
The economic performance of the region remains extremely robust, with gross
domestic
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product growth expected to remain close to 7 percent on average, fueled by
strong domestic consumption, infrastructure spending and trade, especially on an
intraregional basis. In Southeast Asia (specifically, Malaysia, Thailand and
Indonesia), growth rates are expected to decelerate slightly and the
macroeconomic imbalances that have overshadowed growth should begin to diminish,
allowing domestic interest rates to ease later in the year.
Chinese economic growth has also slowed to a more sustainable,
noninflationary level of about 8 percent, down from over 13 percent two years
ago. Inflationary pressures have receded and monetary authorities are now
beginning to ease policy. A subsequent resurgence of growth in China should
underpin the region in general and Hong Kong in particular.
EQUITIES
CAPITAL GROWTH PORTFOLIO
For the six-month period ended June 30, 1996, the Capital Growth Portfolio
produced a total return of 8.67 percent, versus 10.10 percent for the S&P 500.
The Portfolio's slight underperformance of the Index is attributable in part to
its underweighting in the technology sector, which has now begun to correct. As
new names are added to the Portfolio and overpriced names are deleted, we expect
to see continued better performance. On June 30, 1996, the Portfolio had net
assets totaling more than $80 million. At that time, the Portfolio owned 54
stocks spread across 44 different industries.
During May, the Portfolio's investment screens were relaxed in an effort to
provide a larger universe from which to pick stocks. The screens now state that
companies must have positive revenues and earnings in five out of the last eight
years; positive revenues and earnings in the last three years consecutively; and
future short- and long-term revenue and earnings growth of at least 12 percent.
As part of the Portfolio's new focus, initial positions were established in
several companies, including HFS, Inc., La Quinta Inns, Inc., Staples, Inc. and
Cisco Systems, Inc. Deleted positions included Forest Laboratories, Inc.,
Tootsie Roll Industries, Inc., UST, Inc. and U.S. Healthcare, Inc. A few other
positions have been reduced in size.
DIVIDEND GROWTH PORTFOLIO
The Dividend Growth Portfolio had net assets in excess of $1 billion on June
30, 1996, an increase of nearly $184 million from the end of 1995. Five new
common stock positions were added to the portfolio during the past six months:
International Paper Co., American Stores Co., Ashland, Inc., Banc One Corp. and
Timken Co. Additionally, two positions were eliminated with the sale of 360
Communications Co. (a spin-off from Sprint Corp.) and Payless Shoesource, Inc.
(a spin-off from May Department Stores Co.). As of June 30, the Portfolio
consisted of 50 equity issues spread among 30 industry groups, plus 6 U.S.
Treasury bond and note issues. The Portfolio has continued to maintain a
relatively fully invested posture, with over 99 percent of total net assets
committed to longer-term investments.
For the six-month period under review, the Portfolio produced a total return
of 10.23 percent, versus 10.10 percent for the S&P 500. Also, for the period
under consideration, the Portfolio ranked #25 of 76 (top 33 percent) variable
growth and income funds, according to Lipper Analytical Services, Inc. The
Portfolio has also performed well over the long term, ranking #16 of 74 (top 22
percent) funds for the 12 months ended June 30, and #11 of 33 funds (top 33
percent) for the five years ended June 30.
EQUITY PORTFOLIO
For the six-month period ended June 30, 1996, the Equity Portfolio posted a
total return of 8.41 percent. Over the same six months, moderate levels of
inflation and corporate earnings growth helped the U.S. equity market increase
10.10 percent, as measured by the S&P 500. The Portfolio's performance relative
to its peer group continues to be impressive, with a one-year ranking in the top
17 percent of all variable growth funds as measured by Lipper Analytical
Services,
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Inc. (Lipper rankings are based on total return and do not reflect sales
charges.)
As the first quarter of 1996 progressed, the U.S. economy gathered momentum
with employment, industrial production and consumer spending beginning to
accelerate. As evidence of an economic rebound mounted, the portfolio, which had
been balanced in a "barbell" fashion between steady growth and economically
sensitive or cyclical industries, was tilted toward the cyclical end to take
advantage of the expected growth that lay ahead. A lesser exposure to steady
growth industries was thereafter maintained, because the portfolio manager
believed that corporate earnings would decelerate as the year progressed.
Steady growth groups represented in the portfolio included health care
(drugs, health care products and services and medical supplies), consumer
staples (beverages, cosmetics and household products) and consumer business
services (funeral homes, education services and data processing). These
industries historically appreciate in the face of sluggish corporate profit
growth, because of their relative earnings advantage. Financial groups such as
banks were also retained on the basis of the portfolio manager's expectation
that their earnings could continue to outpace overall profits.
On the economically sensitive side, investment holdings included technology
(networking, computer software and communications) and consumer cyclicals
(automobiles, retail, apparel, airlines and lodging). The portfolio manager
focused on this area in an effort to capitalize on signs of continued capital
spending in select high-growth technology areas. Consumer cyclical industries
were purchased on the belief that the sector would experience a rebound in the
wake of rising employment. Purchases also included several stocks in the
agriculture-related, aerospace and energy industries. These industries were
purchased because they represent long-term themes relating to increased demand
emanating from the faster-growing developing countries in Asia and Latin
America.
At the end of the period, significant holdings included Cisco Systems, Inc.,
Boeing Co., Tellabs, Inc., Thermo Electron Corp., Monsanto Co., Citicorp, Hilton
Hotels Corp., Microsoft Corp., Gap, Inc., Johnson & Johnson and Pfizer, Inc.
The portfolio manager believes that the Portfolio is appropriately
positioned to take advantage of those steady growth industries that are still
outpacing overall corporate earnings growth and those industries that are
currently benefiting from an economic lift.
UTILITIES PORTFOLIO
The near-consistent pressure on interest rates throughout most of the first
half of the year, combined with the general uncertainty that continues to
prevail surrounding the deregulation and forthcoming competition within nearly
all sectors of the utility industry, were the dominant factors surrounding the
relatively lackluster year-to-date market performance of the overall utilities
market. Against this backdrop, the Portfolio produced a total return of 4.07
percent for the six-month period ended June 30, 1996. Over the same period, the
S&P 500 registered a total return of 10.10 percent.
Over the first half of 1996, it was a combination of the overall strength of
the economy and the correlating threat of inflation, along with the prevailing
uncertainty during the transition period from monopoly to a competitive utility
industry, that tempered the attraction of utilities investments to investors. On
balance, the electric utility industry continued to receive favorable directives
by state and federal regulators regarding the "financial formula" for
competition. However, the degree of generalities and a lack of details has kept
investors wary and generally insecure regarding dividend growth and safety. Over
the second half of the year, the portfolio manager expects more state regulatory
agencies to formally announce plans to introduce electric power
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competition within their respective borders and envisions few surprises
regarding timing and operating market structure.
Meanwhile, the telecommunications industry has been provided new legislation
that should prompt widespread competition domestically and globally. The market
has been in a quandary, however, as a result of the mixed interpretation of the
legislation as it affects the competitive posture of the local and long-distance
companies. During the third quarter, some clarification and direction is
expected to be provided by the Federal Communications Commission, which should
relieve much of the impasse that has confronted investors. The expanding
telecommunications industry continues to be viewed as an attractive area for new
investment within the Utilities Portfolio.
Natural gas stocks, particularly those of the integrated pipelines and
selective producers, have benefited from strong commodity pricing. As the
fundamental outlook for the natural gas industry strengthens and becomes more
visible over the balance of 1996, we expect additional enthusiasm for the
pipeline, producer and gatherer sectors of the natural gas industry to develop.
At midyear, the Portfolio was 99 percent invested. The overall asset
allocation is 88 percent equity, 9 percent fixed income and 2 percent cash.
Within the equity component, 47 percent is allocated to electric utilities, 39
percent to telecommunications and 14 percent to natural gas. Foreign securities,
which remain heavily weighted in the telecommunications sector, account for 8
percent of net assets.
Looking forward, the Portfolio will maintain its focus on a well-diversified
allocation of utility and utility-related investments. This structure is
expected to enable the Portfolio to achieve its overall objectives of relatively
low volatility, above-average income and good long-term growth.
FIXED-INCOME
HIGH YIELD PORTFOLIO
For the six-month period ended June 30, 1996, the High Yield Portfolio
registered a total return of 6.54 percent. Over the same period, the Lehman
Brothers Corporate/High Yield Index produced a total return of -1.18 percent.
The Portfolio's investment strategy during 1995 and the first half of 1996 has
been to capitalize on the opportunities created by the 1994 market correction by
positioning the Portfolio for a continued rebound in the high-yield market.
Despite the fact that corporate credit quality remained strong, the 1994
correction pushed yields on many B-rated issues 300 to 400 basis points higher
(to the 13 to 14 percent range) and in some cases caused bond prices to decline
by as much as 15 to 20 percent.
In light of this correction, the Portfolio increased its emphasis on
discounted issues, which have helped to provide more capital appreciation
potential during the past year as the high-yield market has rebounded. While the
Portfolio is still positioned for further upside potential in the high-yield
market, it continues to maintain a sizable position in various defensive
securities, in an effort to provide the flexibility needed to take advantage of
any interim opportunities that may arise.
QUALITY INCOME PLUS PORTFOLIO
The lower interest rate environment that prevailed throughout 1995 continued
for three days of 1996. Subsequently, there was a 95 basis point (0.95
percentage points) increase in two year U.S. Treasury notes, a greater than 100
basis point increase in both five-year and ten-year notes respectively, and a 95
basis point increase in the benchmark 30-year U.S. Treasury bond. Against this
backdrop, the Portfolio registered a total return of -3.75 percent for the first
six months of 1996. By contrast, the 10-year U.S. Treasury note returned -4.98
percent over the same time period, while the Lehman Brothers Aggregate Bond
index returned -1.21 percent.
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While strong economic growth was reported during the first six months of
1996, benign inflation, as measured by the 2.8 percent rate in the Consumer
Price Index (CPI) from June 30, 1995, to June 30, 1996, continues to augur well
for the purchase of long-duration bond portfolios. The real rate of interest,
which is quite positive, emphasizes the relative value of portfolios that
contain long-dated high-quality corporate bonds for those investors with a
long-term investment horizon.
The 27 to 33 percent allocation to the AAA-rated mortgage-backed securities
sector cushions the Portfolio's overall risk profile and enhances its overall
quality level to AA, as measured by Standard & Poor's Corp. The asset allocation
at the end of June was 62 percent corporate notes and bonds, 29 percent
mortgage-backed securities, 4 percent U.S. government notes and bonds, 3 percent
Yankee instruments and 2 percent cash equivalents. (A "Yankee" is a
U.S.-dollar-denominated bond issued in the United States by a foreign bank or
corporation.)
During the first six months of 1996, the Portfolio's weighted average
maturity ranged from 12.6 years to 14.5 years. The portfolio manager's
diversified asset allocation strategy, which focuses principally on corporate
bonds, is reviewed on an ongoing basis. Asset shifts between sectors, as for
example sales of U.S. Treasury securities to purchase mortgage-backed
securities, occur regularly to capitalize on the constantly changing investment
horizon.
ASSET ALLOCATION
STRATEGIST PORTFOLIO
For the six-month period ended June 30, 1996, the Strategist Portfolio
provided a total return of 5.73 percent. This compares favorably with a fixed
balance fund (5.02 percent) comprised of the S&P 500 (55 percent), the Lehman
Brothers Government/Corporate Bond Index (35 percent) and commercial paper (10
percent).
The Portfolio adopted Dean Witter Strategist Fund's management discipline on
September 1, 1995, and has adhered to the same allocation target as that fund
since that date. At the conclusion of the period under review, the Portfolio's
asset allocation target was 67 percent equities, 26 percent bonds and 7 percent
cash investments. While the equity weighting was reduced slightly and bonds
increased a bit in the first half of 1996, no major strategic allocation shifts
were made. As a result, the Portfolio continues to overweight equities and
slightly underweight bonds and cash. Benign inflation, a lack of restrictive
Federal Reserve Board policy moves and corporate earnings growth in a range of 8
to 9 percent combined to provide a backdrop consistent with the portfolio's
manager's expectation of roughly twice the total return potential in equity
investments versus bonds, and four times the total return potential versus cash.
The Portfolio's equity component is concentrated in five broad economic
sectors that the portfolio manager believes are poised to outperform the overall
market because of better-than-average earnings growth prospects. Consumer
cyclicals such as retailers (Dayton-Hudson Corp.), automobiles (Ford Motor Co.)
and leisure industries (Carnival Corp.) make up 26 percent of the equity
portfolio and are followed, in order of exposure, by consumer staples (22
percent) such as pharmaceuticals (Lilly (Eli) & Co.) and personal care companies
(Colgate-Palmolive Co.); technology companies (18 percent) such as Microsoft
Corp. and Gateway 2000, Inc.; industrial companies (15 percent) such as Emerson
Electric Co. and Watkins-Johnson Co.; and energy companies (11 percent) like
Texaco, Inc. and Exxon Corp. Underweighted sectors include financials, basis
materials and utilities.
The bond component of the Portfolio, with over 25 issues, is well
diversified among U.S. government and corporate credits as well as foreign
bonds. At the end of June, the fixed-income component's average coupon was 7.7
percent while the average duration stood at 5.9 years, slightly longer than the
Lehman Brothers Government/Corporate Bond Index. (Duration is a measure of a
bond fund's sensitivity to interest-rate
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fluctuations. Generally, to determine this impact you would multiply the fund's
duration by the percentage rates rise or fall).
The second half of 1996 is expected to be dominated by Federal Reserve Board
commentary (and perhaps action), as well as the national elections in November.
In this environment, equity investments are anticipated to continue to
outperform both bonds and cash. We would also expect that some of the losses
suffered by the bond market in the first half of the year may be reversed. The
Portfolio is positioned to benefit from these trends.
GLOBAL/INTERNATIONAL
GLOBAL DIVIDEND GROWTH PORTFOLIO
For the six months ended June 30, 1996, the Global Dividend Growth Portfolio
posted a total return of 8.25 percent, compared to 6.25 percent for the Morgan
Stanley Capital International World Index. Since inception (February 23, 1994),
through June 30, 1996, the Portfolio's cumulative total return was 32.57
percent, versus 25.18 percent for the World Index.
The Portfolio employs stringent screening processes to help discover
attractive opportunities in high-quality common stocks in the world's largest
and most developed markets. The Portfolio currently owns 123 issues in 12
different countries. Some examples of stocks owned include Sprint Corp. and
Monsanto Co. in the United States, Sony Corp. and Honda Motor Co. in Japan,
British Telecommunications PLC and National Westminster Bank PLC in the United
Kingdom, Hugo Boss AG and Bayer AG in Germany, Royal Dutch Petroleum Co. in the
Netherlands and Nestle AG in Switzerland.
Several country allocation targets were revised in January following a
reassessment of the Portfolio's strategic weightings. Assets committed to Japan
and Italy were increased by 2 percent each, to 26 percent and 4 percent of the
Portfolio's net assets, respectively. Offsetting these moves, assets committed
to Switzerland and the U.K. were decreased by 2 percent each, to 2 percent and
10 percent of the Portfolio's net assets, respectively. A combination of factors
in these countries, dominated by valuation-related measures, dictated these
changes.
EUROPEAN GROWTH PORTFOLIO
The European Growth Portfolio produced a total return of 13.52 percent over
the six-month period ended June 30, 1996. The Portfolio ranked #12 of 71 (top 17
percent) Variable International Funds for that period, according to Lipper
Analytical Services, Inc. Longer term, the Portfolio's relative performance
remains impressive. For the 12 months ended June 30, 1996, the Portfolio ranked
#6 of 68 funds (top 9 percent) and for the five years through June 30 it ranked
#1 of 14 funds. (Lipper data are based on total return and do not reflect sales
charges.)
During the period under review, the Portfolio's sector weightings were
adjusted to reflect the changing investment environment. Exposure to the
financial and interest-rate-sensitive sectors was reduced via sales of bank
holdings such as Den Danske Bank (Denmark) and Bayerische Vereinsbank (Germany),
as well as reductions to large positions in Banco Bilbao Vizcaya and Banco
Popular Espanol S.A. (Spain).
The process of widening the Portfolio's stock holdings to encompass more
cyclical and economically sensitive names has been advanced via the purchase of
Usinor Sacilor in France, one of Europe's largest and most cost-efficient steel
manufacturers, and SGL Carbon AG in Germany, a highly specialized industrial
materials company. Strong performance was seen over the past six months from
some of the Portfolio's large-capitalization growth holdings such as Securitas
AB, a Swedish security services company, Hennes & Mauritz AB, a pan-European
fashion retailer and Gas Natural SDG S.A., a Spanish utility.
The emphasis in terms of capitalization remains primarily in the large- and
mid-cap sectors. The currency hedge involving the French
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franc was reduced toward the end of the second quarter given the subadviser's
(Morgan Grenfell Investment Services Limited) view that the period of maximum
U.S. dollar strength in 1996 had passed. The Portfolio's stock holdings will
likely be widened during the second half to hold more economically sensitive and
cyclical stocks to anticipate rising 1997 earnings. Financial and
interest-rate-sensitive sectors will continue to be underweighted. Stock
selection will continue to be the main focus to achieve added value over the
index return.
PACIFIC GROWTH PORTFOLIO
The Pacific Growth Portfolio registered a total return of 7.01 percent for
the six-month period ended June 30, 1996.
Of the major markets, the Portfolio's subadviser, Morgan Grenfell Investment
Services Limited, currently favors Hong Kong, in which the Portfolio holds the
maximum weighting permitted by the prospectus (21.1 percent of total assets). At
the end of the period under review, the Portfolio also had overweighted
positions in Indonesia (8.1 percent of total assets), South Korea (5.4 percent).
Morgan Grenfell is also encouraged by the prospects in China, where property
market data and lower inflation numbers are cause for optimism. The Portfolio
also has modest exposure to Australia (1.5 percent), reflecting expectations of
growing demand for natural resources as the global economy gradually recovers.
At the sector/stock level, Morgan Grenfell currently favors residential real
estate and bank shares in Hong Kong, such as Cheung Kong (Holdings) Ltd. and Dao
Heng Bank Group Ltd. The building materials sector is overweighted in Indonesia,
while gaming stocks are favored in Malaysia. In Japan, the Portfolio retains an
overweighting in small-cap issues, which Morgan Grenfell believes are heavily
undervalued relative to the rest of the market. Following significant U.S.
dollar strength, currency hedges were removed.
MONEY MARKETS
MONEY MARKET PORTFOLIO
As of June 30, 1996, the Money Market Portfolio had assets in excess of $286
million and an average life of 68 days. The Portfolio's yield for the 12-months
ended June 30, 1996, was 4.85 percent. Its annualized yield for the month of
June was 4.87 percent.
Rates available on money market securities held remarkably stable during the
second half of 1995, then declined by about 25 basis points (0.25 percentage
points) during January and February 1996. For the following four months, yields
again remained fairly steady but showed some firming during June. As the
economic data continued on balance to register stronger-than-expected trends, a
more positively shaped yield curve developed in the money market, with most of
the change occurring in maturities of 4 to 12 months.
Payroll employment data announced during the first half of 1996 was quite
strong. Average monthly job gains for the first six months of 1996 exceeded
230,000, with particularly strong growth in February (509,000) and May
(365,000). The June employment report, which featured a drop in the unemployment
rate to a six-year low of 5.3 percent, the largest average hourly earnings
increase on record (9 cents) and a 0.5 hour increase in the average workweek,
seemed to heighten market sentiment that the Federal Reserve Board might raise
short-term interest rates before the end of 1996.
On June 30, 1996, approximately 76 percent of the Portfolio was invested in
high-quality commercial paper, 14 percent in short-term bank notes and
certificates of deposit issued by financially strong major commercial banks and
7 percent in bankers' acceptances issued by such institutions. The remaining 3
percent was invested in federal agency obligations.
At the end of the period under review, more than 85 percent of the
Portfolio's assets were scheduled to mature in less than four months.
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Therefore, the Portfolio is well positioned for stability of value, with a high
degree of liquidity. We continue to operate the Portfolio in a straightforward,
conservative style without "structured" notes or derivative securities which can
fluctuate excessively when interest rates change.
At this time, we anticipate a moderate pace for economic activity during the
second half of 1996, with no major adverse changes in the rate of inflation.
Investment yields available to the Portfolio during the second half of 1996
could be slightly higher than those achieved during the first half of 1996. We
believe that the Portfolio continues to be a very useful investment for
liquidity, preservation of capital and a yield that will reflect prevailing
money market conditions.
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 JUNE 30, 1996 (UNAUDITED)
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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 (76.1%)
AUTOMOTIVE - FINANCE (8.3%)
$ 10,275 Ford Motor Credit Co.................................... 5.34-5.46 % 07/18/96-10/08/96 $ 10,176,702
13,715 General Motors Acceptance Corp.......................... 5.05-5.55 07/11/96-12/16/96 13,552,110
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23,728,812
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BANK HOLDING COMPANIES (13.6%)
4,100 Bank of New York Co., Inc............................... 5.47 09/03/96 4,059,410
6,485 Chase Manhattan Corp.................................... 5.39-5.46 08/19/96-11/01/96 6,409,042
4,000 Fleet Financial Group, Inc.............................. 5.41 07/25/96 3,984,573
4,120 Morgan (J.P.) & Co. Inc................................. 5.39 09/03/96 4,079,967
9,390 NationsBank Corp........................................ 5.45-5.75 11/20/96-02/28/97 9,109,865
5,050 PNC Funding Corp........................................ 5.53 09/27/96 4,981,194
6,160 U.S. Bancorp............................................ 5.34 07/09/96 6,151,000
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38,775,051
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BANKS - COMMERCIAL (13.4%)
3,000 Abbey National North America Corp....................... 5.48 11/04/96 2,943,147
5,000 ABN - AMRO North America Finance Inc.................... 5.00 10/07/96 4,932,778
6,270 Canadian Imperial Holdings Inc.......................... 5.37-5.52 08/26/96-09/09/96 6,210,609
4,820 Commerzbank U.S. Finance Inc............................ 5.35 07/01/96 4,818,586
3,000 Dresdner U.S. Finance Inc............................... 5.06 08/26/96 2,976,172
3,000 National Austrialia Funding (DE) Inc.................... 5.11 08/05/96 2,984,583
5,130 Toronto - Dominion Holdings USA Inc..................... 5.35 08/15/96 5,094,637
8,535 WestPac Capital Corp.................................... 5.45-5.47 09/10/96-11/20/96 8,384,549
---------------
38,345,061
---------------
BROKERAGE (6.1%)
8,120 Goldman Sachs Group L.P................................. 5.36-5.40 07/08/96-09/04/96 8,076,786
9,370 Morgan Stanley Group, Inc............................... 5.35-5.37 07/02/96-08/23/96 9,319,928
---------------
17,396,714
---------------
CHEMICALS (1.9%)
3,200 Du Pont (E.I.) de Nemours & Co.......................... 5.36 07/23/96 3,188,693
2,365 Monsanto Co............................................. 5.35 07/16/96 2,359,103
---------------
5,547,796
---------------
FINANCE - COMMERCIAL (2.3%)
6,685 CIT Group Holdings, Inc................................. 5.43 08/19/96-08/27/96 6,629,877
---------------
FINANCE - CONSUMER (13.0%)
11,870 American Express Credit Corp............................ 4.97-5.55 07/01/96-10/30/96 11,789,911
3,090 Avco Financial Services Inc............................. 5.39 08/07/96 3,072,191
2,230 Beneficial Corp......................................... 5.36 08/06/96 2,217,619
10,640 Household Finance Corp.................................. 5.32-5.50 07/19/96-10/17/96 10,564,973
9,440 Norwest Financial Inc................................... 5.29-5.41 07/10/96-08/13/96 9,405,987
---------------
37,050,681
---------------
FINANCE - CORPORATE (1.6%)
4,520 Ciesco, L.P............................................. 5.46 09/17/96 4,465,861
---------------
FINANCE - DIVERSIFIED (4.8%)
2,000 Associates Corp. of North America....................... 5.19 07/29/96 1,991,533
12,015 General Electric Capital Corp........................... 5.13-5.81 08/02/96-02/10/97 11,815,192
---------------
13,806,725
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--MONEY MARKET
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT (IN ON DATE OF MATURITY
THOUSANDS) PURCHASE DATE VALUE
- ----------- ------------ ------------------- ---------------
<C> <S> <C> <C> <C>
FINANCE - EQUIPMENT (1.0%)
$ 3,000 Deere (John) Capital Corp............................... 5.41 % 08/12/96 $ 2,980,530
---------------
OFFICE EQUIPMENT (3.7%)
10,655 IBM Credit Corp......................................... 5.35-5.42 07/16/96-08/21/96 10,618,229
---------------
RETAIL (4.8%)
13,850 Sears Roebuck Acceptance Corp........................... 5.37-5.44 07/22/96-09/26/96 13,741,607
---------------
TELEPHONES (0.7%)
2,000 Ameritech Corp.......................................... 5.33 07/30/96 1,990,993
---------------
UTILITIES - FINANCE (0.9%)
2,680 National Rural Utilities Cooperative Finance Corp....... 5.34 07/17/96 2,672,938
---------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $217,750,875)....................................... 217,750,875
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
SHORT-TERM BANK NOTES (8.3%)
4,975 Bank of New York........................................ 5.34 07/15/96 4,975,000
9,500 F.C.C. National Bank.................................... 5.34-5.47 07/12/96-09/13/96 9,500,000
4,000 First National Bank of Chicago.......................... 5.45 11/29/96 4,000,000
3,135 First Union National Bank............................... 5.00 08/15/96 3,135,000
2,220 La Salle National Bank.................................. 5.43 09/12/96 2,220,000
---------------
TOTAL SHORT-TERM BANK NOTES (AMORTIZED COST $23,830,000)................................... 23,830,000
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
BANKERS' ACCEPTANCES (7.1%)
7,000 First Bank, N.A......................................... 5.43 10/11/96 6,893,025
13,500 First National Bank of Boston........................... 5.26-5.61 07/15/96-12/03/96 13,348,341
---------------
TOTAL BANKERS' ACCEPTANCES (AMORTIZED COST $20,241,366).................................... 20,241,366
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT (5.9%)
5,835 Chase Manhattan Bank (USA).............................. 5.38 09/18/96 5,835,000
6,000 Old Kent Bank (Michigan)................................ 5.40 09/30/96 6,000,000
5,000 Union Bank of California, N.A........................... 5.47 09/11/96 5,000,000
---------------
TOTAL CERTIFICATES OF DEPOSIT (AMORTIZED COST $16,835,000)................................. 16,835,000
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES (2.7%)
3,675 Federal Farm Credit Bank................................ 5.49 11/27/96 3,594,844
4,100 Federal National Mortgage Assoc......................... 5.23-5.25 08/29/96-11/21/96 4,031,635
---------------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $7,626,479)................................. 7,626,479
---------------
TOTAL INVESTMENTS (AMORTIZED COST $286,283,720) (A).................... 100.1% 286,283,720
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS......................... (0.1) (129,322)
---------- -------------
NET ASSETS............................................................. 100.0% $ 286,154,398
---------- -------------
---------- -------------
<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 JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (61.6%)
AUTOMOTIVE (0.2%)
$ 1,000 Ford Motor Co.............................................. 8.875% 01/15/22 $ 1,124,040
---------------
BANK HOLDING COMPANIES (5.9%)
1,000 Banc One Corp.............................................. 8.74 09/15/03 1,089,660
1,000 BankAmerica Corp........................................... 9.625 02/13/01 1,106,050
2,000 Boatmen's Bancshares, Inc.................................. 9.25 11/01/01 2,194,980
1,000 CoreStates Financial Corp.................................. 9.625 02/15/01 1,104,900
5,000 First Bank, N.A............................................ 8.35 11/01/04 5,313,450
4,000 Fleet Mortgage Group, Inc.................................. 6.50 09/15/99 3,977,600
2,000 Huntington National Bank................................... 7.625 01/15/03 2,048,380
3,000 Marshall & Ilsley Corp..................................... 6.375 07/15/03 2,881,980
3,145 PNC Funding Corp........................................... 9.875 03/01/01 3,500,070
5,000 State Street Boston Corp................................... 5.95 09/15/03 4,673,350
---------------
27,890,420
---------------
BANKS (4.1%)
4,000 Bankers Trust New York Corp................................ 7.375 05/01/08 3,927,440
4,000 Bankers Trust New York Corp................................ 7.50 11/15/15 3,829,880
3,000 Old Kent Financial Corp.................................... 6.625 11/15/05 2,825,580
2,000 Society National Bank...................................... 6.75 06/15/03 1,959,940
2,000 Wachovia Corp.............................................. 6.375 04/15/03 1,925,900
5,000 Wachovia Corp.............................................. 6.80 06/01/05 4,860,650
---------------
19,329,390
---------------
BEVERAGES - SOFT DRINKS (0.5%)
2,000 Coca-Cola Enterprises, Inc................................. 8.50 02/01/22 2,205,860
---------------
BROKERAGE (2.8%)
1,000 Bear Stearns Companies, Inc................................ 9.125 04/15/98 1,043,760
4,000 Bear Stearns Companies, Inc................................ 6.625 01/15/04 3,808,160
2,000 Donaldson, Lufkin & Jenrette, Inc.......................... 6.875 11/01/05 1,897,900
5,000 Lehman Brothers Holdings Inc............................... 8.50 08/01/15 5,132,150
1,000 Morgan Stanley Group, Inc.................................. 9.25 03/01/98 1,045,270
---------------
12,927,240
---------------
ENTERTAINMENT/MEDIA (1.0%)
5,000 Walt Disney Co............................................. 7.55 07/15/93 4,833,400
---------------
FINANCIAL SERVICES (10.5%)
5,000 Aristar, Inc............................................... 6.30 07/15/00 4,897,150
1,000 Associates Corp. of North America.......................... 6.75 10/15/99 1,002,430
3,000 Equifax, Inc............................................... 6.50 06/15/03 2,896,170
3,000 Ford Capital BV............................................ 9.50 06/01/10 3,470,280
3,000 Ford Motor Credit Co....................................... 8.20 02/15/02 3,160,410
3,000 General Motors Acceptance Corp............................. 9.00 10/15/02 3,279,750
3,500 Household Finance Corp..................................... 7.75 06/01/99 3,596,250
2,000 Household Finance Corp..................................... 8.95 09/15/99 2,126,020
3,500 Household Finance Corp..................................... 8.45 12/10/02 3,727,780
4,000 ITT Hartford Group Inc..................................... 6.375 11/01/02 3,853,360
5,000 Lumbermens Mutual Casualty - 144A*......................... 9.15 07/01/26 5,183,400
5,000 Metropolitan Life Insurance Co. - 144A*.................... 7.70 11/01/15 4,842,350
4,000 Norwest Financial Inc...................................... 7.875 02/15/02 4,173,200
3,000 Travelers Group, Inc....................................... 7.75 06/15/99 3,085,680
---------------
49,294,230
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (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 $ 1,140,400
---------------
FOODS (1.4%)
10,000 Archer-Daniels-Midland Co.................................. 0.00 05/01/02 6,744,700
---------------
HEALTHCARE - DIVERSIFIED (0.7%)
2,000 Kaiser Foundation Health Plan, Inc......................... 9.00 11/01/01 2,185,120
1,000 Kaiser Foundation Health Plan, Inc......................... 9.55 07/15/05 1,156,800
---------------
3,341,920
---------------
INDUSTRIALS (14.0%)
4,000 Becton, Dickinson & Co..................................... 8.70 01/15/25 4,241,160
5,000 Boeing Co.................................................. 7.95 08/15/24 5,384,000
2,000 Burlington Resources, Inc.................................. 7.15 05/01/99 2,021,120
1,000 Caterpillar, Inc........................................... 9.375 07/15/01 1,101,780
3,000 Caterpillar, Inc........................................... 9.375 08/15/11 3,487,560
5,000 Columbia/HCA Healthcare Corp............................... 9.00 12/15/14 5,676,200
5,000 General Motors Corp........................................ 7.70 04/15/16 4,963,050
4,000 IBP Inc.................................................... 7.125 02/01/26 3,625,040
3,000 Lockheed Martin Corp....................................... 7.70 06/15/08 3,054,120
2,000 Lockheed Martin Corp....................................... 7.65 05/01/16 1,985,180
5,000 Lockheed Martin Corp....................................... 7.875 03/15/23 4,849,300
5,000 Lockheed Martin Corp....................................... 7.20 05/01/36 4,972,500
1,000 Maytag Corp................................................ 9.75 05/15/02 1,118,920
5,000 Philip Morris Companies, Inc............................... 7.50 01/15/02 5,114,900
5,000 Philip Morris Companies, Inc............................... 7.125 10/01/04 4,985,500
5,000 Raytheon Co................................................ 7.375 07/15/25 4,755,800
5,000 Seagram Co. Ltd............................................ 6.875 09/01/23 4,494,950
---------------
65,831,080
---------------
OIL INTEGRATED - DOMESTIC (0.4%)
578 Mobil Corp................................................. 9.17 02/29/00 607,822
1,000 Texaco Capital, Inc........................................ 9.75 03/15/20 1,234,130
---------------
1,841,952
---------------
PHARMACEUTICALS (2.2%)
5,000 Johnson & Johnson.......................................... 8.72 11/01/24 5,428,900
797 Marion Merrell Corp........................................ 9.11 08/01/05 865,823
1,000 McKesson Corp.............................................. 8.625 02/01/98 1,032,580
3,000 Zeneca Wilmington, Inc..................................... 7.00 11/15/23 2,776,740
---------------
10,104,043
---------------
REAL ESTATE INVESTMENT TRUST (1.0%)
5,000 Kimco Realty Corp.......................................... 6.50 10/01/03 4,722,300
---------------
RETAIL (3.0%)
5,000 May Department Stores...................................... 7.625 08/15/13 5,000,800
5,000 May Department Stores...................................... 7.50 06/01/15 4,899,750
1,000 Penney (J.C.) Co., Inc..................................... 9.75 06/15/21 1,116,370
3,000 Wal-Mart Stores, Inc....................................... 7.49 06/21/07 3,072,210
---------------
14,089,130
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS (4.4%)
$ 5,000 AT&T Corp.................................................. 8.35% 01/15/25 $ 5,222,950
2,000 BellSouth Telecommunications, Inc.......................... 7.00 12/01/95 1,842,020
5,000 GTE North Inc.............................................. 7.625 05/15/26 4,903,050
4,000 Northern Telecom, Ltd. (Canada)............................ 7.875 06/15/26 4,094,520
5,000 Southwestern Bell Telephone Co............................. 6.625 09/01/24 4,409,250
---------------
20,471,790
---------------
TRANSPORTATION (1.4%)
4,998 Burlington Northern Sante Fe Corp.......................... 7.97 01/01/15 5,193,295
1,000 Consolidated Rail Corp..................................... 9.75 06/15/20 1,209,670
---------------
6,402,965
---------------
UTILITIES - ELECTRIC (6.7%)
1,000 Chugach Electric Co........................................ 9.14 03/15/22 1,083,250
3,750 Consolidated Edison Co. of New York, Inc................... 8.05 12/15/27 3,685,761
4,000 Duke Power Co.............................................. 8.625 03/01/22 4,107,600
5,000 Florida Power & Light Co................................... 7.05 12/01/26 4,591,550
1,260 Georgia Power Co........................................... 8.625 06/01/22 1,276,884
5,000 National Rural Utilities Cooperative Finance Corp.......... 6.50 09/15/02 4,889,000
2,500 Pacific Gas & Electric Co.................................. 7.25 08/01/26 2,289,650
5,000 Pennsylvania Power & Light Co.............................. 7.70 10/01/09 5,137,900
5,000 Public Service Electric & Gas Co........................... 6.75 01/01/16 4,486,600
---------------
31,548,195
---------------
WASTE DISPOSAL (1.2%)
5,000 Browning Ferris Industries, Inc............................ 9.25 05/01/21 5,850,050
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $286,026,180)........................................ 289,693,105
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
U.S. GOVERNMENT & AGENCIES OBLIGATION (31.3%)
41 Federal Home Loan Mortgage Corp............................ 11.50 06/01/11-05/01/19 45,614
554 Federal Home Loan Mortgage Corp. PC Gold................... 6.50 01/01/24-09/01/24 518,616
12,538 Federal Home Loan Mortgage Corp. PC Gold................... 8.00 04/01/24-05/01/26 12,647,930
3,550 Federal Home Loan Mortgage Corp. PC Gold................... 8.50 01/01/22-12/01/24 3,645,028
2,000 Federal National Mortgage Assoc. (Principal Strip)......... 0.00 08/21/01 1,986,900
30,000 Federal National Mortgage Assoc. (Principal Strip)......... 0.00 10/09/19 5,446,875
9,000 Federal National Mortgage Assoc............................ 7.50 07/01/26 8,881,875
16,785 Federal National Mortgage Assoc............................ 8.00 05/01/16-09/01/25 16,910,744
1,884 Federal National Mortgage Assoc............................ 9.00 06/01/21-02/01/25 1,964,369
5,299 Government National Mortgage Assoc......................... 6.50 04/15/24-05/15/26 4,930,639
38,580 Government National Mortgage Assoc......................... 7.00 10/15/22-07/15/26 37,000,270
23,369 Government National Mortgage Assoc......................... 7.50 10/15/21-07/15/26 23,032,691
10,287 Government National Mortgage Assoc......................... 8.00 10/15/24-06/15/26 10,376,549
5,614 Government National Mortgage Assoc......................... 8.50 01/15/17-07/15/26 5,771,758
3,852 Government National Mortgage Assoc......................... 9.00 07/15/24-12/15/24 4,031,461
212 Government National Mortgage Assoc......................... 9.50 07/15/17-04/15/20 227,013
220 Government National Mortgage Assoc......................... 10.00 05/15/16-04/15/19 239,430
5,000 Tennessee Valley Authority................................. 7.85 06/15/44 4,935,943
5,000 U.S. Treasury Bond......................................... 6.00 02/15/26 4,435,156
---------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATION
(IDENTIFIED COST $147,874,510)............................................................ 147,028,861
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--QUALITY INCOME PLUS
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- ------------------- ---------------
<C> <S> <C> <C> <C>
FOREIGN GOVERNMENT & AGENCIES OBLIGATIONS (3.4%)
$ 5,000 Hydro-Quebec (Canada)...................................... 9.50% 11/15/30 $ 5,872,000
3,000 Italy (Republic of)........................................ 6.875 09/27/23 2,822,580
5,000 Province of New Brunswick (Canada)......................... 7.625 06/29/04 5,158,450
2,000 Quebec Province (Canada)................................... 7.50 07/15/23 1,908,540
---------------
TOTAL FOREIGN GOVERNMENT & AGENCIES OBLIGATIONS
(IDENTIFIED COST $14,653,330)............................................................. 15,761,570
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (1.5%)
COMMERCIAL PAPER (A) (0.8%)
AUTOMOTIVE - FINANCE
4,000 Ford Motor Credit Co....................................... 5.29 07/15/96 3,991,772
---------------
U.S. GOVERNMENT AGENCY (A) (0.6%)
3,000 Federal Farm Credit Bank................................... 5.24 07/15/96 2,993,886
---------------
REPURCHASE AGREEMENT (0.1%)
298 The Bank of New York (dated 06/28/96; proceeds $298,195;
collateralized by $302,726 U.S. Treasury Note 5.25% due
07/31/98 valued at $304,029) (Identified Cost
$298,068)................................................ 5.125 07/01/96 298,068
---------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $7,283,726)................................... 7,283,726
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $455,837,746) (B)................... 97.8% 459,767,262
OTHER ASSETS IN EXCESS OF LIABILITIES.................................. 2.2 10,332,426
---------- -------------
NET ASSETS............................................................. 100.0% $ 470,099,688
---------- -------------
---------- -------------
<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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $10,688,979 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $6,759,463, RESULTING IN NET
UNREALIZED APPRECIATION OF $3,929,516.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (91.8%)
AEROSPACE (2.3%)
$ 5,400 Sabreliner Corp. (Series B)......................................... 12.50 % 04/15/03 $ 4,563,000
---------------
AUTOMOTIVE (2.2%)
800 APS, Inc. - 144A*................................................... 11.875 01/15/06 834,000
4,750 Envirotest Systems, Inc............................................. 9.625 04/01/03 3,657,500
---------------
4,491,500
---------------
BROADCAST MEDIA (3.3%)
2,000 Adams Outdoor Advertising - 144A*................................... 10.75 03/15/06 2,050,000
2,000 Park Broadcasting Inc. - 144A*...................................... 11.75 05/15/04 1,995,000
2,505 Spanish Broadcasting System, Inc.................................... 7.50 06/15/02 2,498,738
---------------
6,543,738
---------------
BUSINESS SERVICES (3.7%)
2,000 Anacomp, Inc........................................................ 13.00+ 06/04/02 1,947,500
5,000 Xerox Corp.......................................................... 15.00 06/10/97 5,417,500
---------------
7,365,000
---------------
CABLE & TELECOMMUNICATIONS (13.7%)
3,566 Adelphia Communications Corp. (Series B)............................ 9.50+ 02/15/04 3,093,577
2,000 American Communications Services, Inc. - 144A*...................... 12.75++ 04/01/06 1,055,000
5,000 AT&T Capital Corp................................................... 15.00 05/05/97 5,358,800
2,000 Charter Communication South East L.P. - 144A*....................... 11.25 03/15/06 1,970,000
3,019 Falcon Holdings Group L.P........................................... 11.00+ 09/15/03 2,882,906
2,000 Hyperion Communications (Units)++ - 144A*........................... 13.00++ 04/15/03 1,115,000
15,485 In-Flight Phone Corp. (Series B).................................... 14.00++ 05/15/02 5,497,175
2,000 Intermedia Communications of Florida, Inc........................... 12.50++ 05/15/06 1,120,000
1,500 Paxson Communications Corp.......................................... 11.625 10/01/02 1,552,500
2,000 Peoples Telephone Co., Inc.......................................... 12.25 07/15/02 1,940,000
2,000 Rifkin Acquisition Partners L.P..................................... 11.125 01/15/06 1,970,000
---------------
27,554,958
---------------
COMPUTER EQUIPMENT (2.3%)
2,000 Unisys Corp......................................................... 15.00 07/01/97 2,115,000
2,000 Unisys Corp. (Conv.)................................................ 8.25 03/15/06 2,481,500
---------------
4,596,500
---------------
CONSUMER PRODUCTS (1.5%)
3,000 J.B. Williams Holdings, Inc......................................... 12.00 03/01/04 3,030,000
---------------
CONTAINERS (2.9%)
6,400 Ivex Holdings Corp. (Series B)...................................... 13.25++ 03/15/05 3,936,000
2,000 Mail-Well Corp...................................................... 10.50 02/15/04 1,920,000
---------------
5,856,000
---------------
ELECTRICAL & ALARM SYSTEMS (2.1%)
5,000 Mosler, Inc......................................................... 11.00 04/15/03 4,250,000
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
ENTERTAINMENT/GAMING & LODGING (9.5%)
$ 2,000 AMF Group Inc. - 144A*.............................................. 10.875 % 03/15/06 $ 1,975,000
2,000 Fitzgeralds Gaming Corp. (Units)++.................................. 13.00 12/31/02 1,680,000
3,000 Lady Luck Gaming Finance Corp....................................... 11.875 03/01/01 2,955,000
3,000 Motels of America, Inc. (Series B).................................. 12.00 04/15/04 2,880,000
2,000 Players International, Inc.......................................... 10.875 04/15/05 2,032,500
3,400 Plitt Theaters, Inc. (Canada)....................................... 10.875 06/15/04 3,459,500
17,356 Spectravision, Inc. (a)............................................. 11.65 12/01/02 2,016,977
2,200 Station Casinos, Inc. (Series B).................................... 9.625 06/01/03 2,112,000
---------------
19,110,977
---------------
FOODS & BEVERAGES (10.7%)
8,915 Envirodyne Industries, Inc.......................................... 10.25 12/01/01 7,756,049
1,500 SC International Services, Inc...................................... 13.00 10/01/05 1,631,250
5,745 Seven Up/RC Bottling Co. Southern California, Inc. (b).............. 11.50 08/01/99 3,935,225
18,750 Specialty Foods Acquisition Corp. (Series B)........................ 13.00++ 08/15/05 8,250,000
---------------
21,572,524
---------------
HEALTHCARE (1.5%)
3,210 Unilab Corp......................................................... 11.00 04/01/06 3,017,400
---------------
MANUFACTURING (7.3%)
4,000 Alpine Group, Inc. (Series B)....................................... 12.25 07/15/03 4,030,000
2,000 Berry Plastics Corp................................................. 12.25 04/15/04 2,150,000
3,000 Cabot Safety Corp................................................... 12.50 07/15/05 3,307,500
1,000 Exide Electronics Group, Inc. (Series B) - 144A*.................... 11.50 03/15/06 1,020,000
2,000 International Wire Group............................................ 11.75 06/01/05 1,985,000
2,500 Uniroyal Technology Corp............................................ 11.75 06/01/03 2,250,000
---------------
14,742,500
---------------
MANUFACTURING - DIVERSIFIED (6.4%)
2,090 Foamex L.P.......................................................... 11.875 10/01/04 2,142,250
3,000 Interlake Corp...................................................... 12.125 03/01/02 3,007,500
3,000 J.B. Poindexter & Co., Inc.......................................... 12.50 05/15/04 2,557,500
2,000 Jordan Industries, Inc.............................................. 10.375 08/01/03 1,910,000
4,500 Jordan Industries, Inc.............................................. 11.75++ 08/01/05 3,217,500
---------------
12,834,750
---------------
OIL & GAS (0.9%)
2,000 Empire Gas Corp..................................................... 7.00 07/15/04 1,770,000
---------------
PUBLISHING (4.5%)
5,000 Affiliated Newspapers Investments, Inc.............................. 13.25++ 07/01/06 3,450,000
2,000 American Media Operations, Inc...................................... 11.625 11/15/04 2,020,000
2,875 United States Banknote Corp......................................... 10.375 06/01/02 2,645,000
1,100 United States Banknote Corp. (Series B)............................. 11.625 08/01/02 913,000
---------------
9,028,000
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ---------------
<C> <S> <C> <C> <C>
RESTAURANTS (8.7%)
$ 7,750 American Restaurant Group Holdings, Inc............................. 14.00++% 12/15/05 $ 3,022,500
3,000 Boston Chicken Inc. (Conv.)......................................... 4.50 02/01/04 3,540,000
3,000 Carrols Corp........................................................ 11.50 08/15/03 3,045,000
11,850 Flagstar Corp....................................................... 11.25 11/01/04 7,821,000
---------------
17,428,500
---------------
RETAIL (2.0%)
2,163 Cort Furniture Rental Corp.......................................... 12.00 09/01/00 2,252,224
2,000 County Seat Stores Co............................................... 12.00 10/01/02 1,740,000
---------------
3,992,224
---------------
RETAIL - FOOD CHAINS (4.2%)
2,000 Jitney-Jungle Stores................................................ 12.00 03/01/06 2,040,000
2,000 Pathmark Stores, Inc................................................ 9.625 05/01/03 1,875,000
2,750 Ralphs Grocery Co................................................... 10.45 06/15/04 2,626,250
2,000 Ralphs Grocery Co................................................... 11.00 06/15/05 1,840,000
---------------
8,381,250
---------------
TEXTILES - APPAREL MANUFACTURERS (2.1%)
5,034 JPS Textile Group, Inc.............................................. 10.85 06/01/99 2,932,305
1,500 U.S. Leather, Inc................................................... 10.25 07/31/03 1,260,000
---------------
4,192,305
---------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $192,972,205)...................................... 184,321,126
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
COMMON STOCKS (C) (1.6%)
AUTOMOTIVE (0.0%)
87 Northern Holdings Industrial Corp. (Restricted) (d)..................................... --
---------------
COMPUTER EQUIPMENT (0.0%)
39,813 Memorex Telex NV (ADR) (Netherlands) (d)................................................ 49,766
---------------
ENTERTAINMENT/GAMING & LODGING (0.1%)
2,000 Motels of America, Inc. - 144A*......................................................... 150,072
71,890 Vagabond Inns, Inc. (Class D) (a)....................................................... --
---------------
150,072
---------------
FOODS & BEVERAGES (0.1%)
120,000 Specialty Foods Acquisition Corp. (Restricted) - 144A*.................................. 150,000
---------------
MANUFACTURING - DIVERSIFIED (0.9%)
84,072 Thermadyne Holdings Corp. (d)........................................................... 1,807,548
---------------
PUBLISHING (0.1%)
5,000 Affiliated Newspapers Investments, Inc. (Class B)....................................... 150,000
---------------
RESTAURANTS (0.0%)
7,750 American Restaurant Group Holdings, Inc. - 144A*........................................ 77,500
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
RETAIL (0.4%)
21,516 CORT Business Services Corp............................................................. $ 419,562
17,100 Thrifty Payless Holdings, Inc. (Class B)................................................ 294,975
---------------
714,537
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST $9,922,166)........................................ 3,099,423
---------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
PREFERRED STOCK (1.0%)
ENTERTAINMENT/GAMING & LODGING
80,000 Fitzgeralds Gaming Corp. (Units)++ (Identified Cost $2,000,000)......................... 2,080,000
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE
- ----------- ---------
<C> <S> <C> <C>
WARRANTS (C) (0.1%)
AEROSPACE (0.0%)
1,500 Sabreliner Corp. (Restricted) - 144A*......................................... 04/15/03 15,000
---------------
CABLE & TELECOMMUNICATIONS (0.0%)
9,485 In-Flight Phone Corp. - 144A*................................................. 08/31/02 94,850
---------------
CONTAINERS (0.0%)
2,000 Crown Packaging Holdings, Ltd. (Canada) - 144A*............................... 11/01/03 --
---------------
ENTERTAINMENT/GAMING & LODGING (0.0%)
1,000 Boomtown, Inc. - 144A*........................................................ 11/01/98 --
3,263 Casino America, Inc........................................................... 11/15/96 --
2,000 Fitzgeralds Gaming Corp....................................................... 12/19/98 9,043
---------------
9,043
---------------
MANUFACTURING (0.1%)
3,000 BPC Holdings Corp............................................................. 04/15/04 135,555
1,000 Exide Electronics Group, Inc. - 144A*......................................... 03/15/06 30,000
15,000 Uniroyal Technology Corp...................................................... 06/01/03 26,250
---------------
191,805
---------------
OIL & GAS (0.0%)
4,140 Empire Gas Corp............................................................... 07/15/04 41,400
---------------
RETAIL (0.0%)
2,000 County Seat Holdings Co....................................................... 10/15/98 20,000
---------------
RETAIL - FOOD CHAINS (0.0%)
15,854 Grand Union Co. (Series 1) (d)................................................ 06/16/00 --
31,709 Grand Union Co. (Series 2) (d)................................................ 06/16/00 --
---------------
--
---------------
TOTAL WARRANTS (IDENTIFIED COST $812,539)................................................ 372,098
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--HIGH YIELD
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ---------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (6.2%)
U.S. GOVERNMENT AGENCY (E) (5.7%)
$ 11,500 Federal Farm Credit Bank............................................. 5.45 % 07/01/96 $ 11,500,000
---------------
REPURCHASE AGREEMENT (0.5%)
1,043 The Bank of New York (dated 06/28/96; proceeds $1,043,681;
collateralized by $1,004,698 U.S. Treasury Bond 7.50% due 11/15/16
valued at $1,064,100) (Identified Cost $1,043,235)................. 5.125 07/01/96 1,043,235
---------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $12,543,235).................................. 12,543,235
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $218,250,145) (F)................... 100.7% 202,415,882
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS......................... (0.7) (1,399,975)
---------- -------------
NET ASSETS............................................................. 100.0% $ 201,015,907
---------- -------------
---------- -------------
<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 SECURITY, ISSUER IN BANKRUPTCY.
(B) NON-INCOME PRODUCING SECURITY, BOND IN DEFAULT.
(C) NON-INCOME PRODUCING SECURITIES.
(D) ACQUIRED THROUGH EXCHANGE OFFER.
(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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $4,899,669 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $20,733,932, RESULTING IN NET
UNREALIZED DEPRECIATION OF $15,834,263.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (87.3%)
NATURAL GAS (12.2%)
75,000 Apache Corp......................... $ 2,465,625
120,000 Burlington Resources, Inc........... 5,160,000
55,000 Columbia Gas System, Inc............ 2,866,875
150,000 El Paso Natural Gas Co.............. 5,775,000
150,000 ENSERCH Corp........................ 3,262,500
85,000 Louisiana Land & Exploration
Co. (The)......................... 4,898,125
130,000 PanEnergy Corp...................... 4,273,750
130,000 Questar Corp........................ 4,420,000
190,000 Seagull Energy Corp.*............... 4,750,000
120,000 Tenneco, Inc........................ 6,135,000
135,000 Union Texas Petroleum Holdings,
Inc............................... 2,632,500
85,000 USX Delhi-Group..................... 1,041,250
185,000 Williams Companies, Inc............. 9,157,500
---------------
56,838,125
---------------
TELECOMMUNICATIONS (34.2%)
66,666 360 Communications Co.*............. 1,599,984
135,000 Airtouch Communications, Inc.*...... 3,813,750
230,000 Alltel Corp......................... 7,072,500
180,000 AT&T Corp........................... 11,160,000
160,000 BCE, Inc. (Canada).................. 6,320,000
285,000 Cable & Wireless PLC (ADR)
(United Kingdom).................. 5,628,750
160,000 Century Telephone Enterprises,
Inc............................... 5,100,000
45,000 Cincinnati Bell, Inc................ 2,345,625
180,000 Comcast Corp. (Class A)............. 3,307,500
150,000 Comsat Corp......................... 3,900,000
300,000 Ericsson (L.M.) Telephone Co.
AB (ADR) (Sweden)................. 6,412,500
225,000 Frontier Corp....................... 6,890,625
160,000 GTE Corp............................ 7,160,000
61,250 Liberty Media Group (Class A)*...... 1,623,125
180,000 MCI Communications Corp............. 4,590,000
175,000 MFS Communications Company,
Inc.*............................. 6,562,500
40,000 Motorola, Inc....................... 2,515,000
100,000 Northern Telecom, Ltd. (Canada)..... 5,437,500
140,000 NYNEX Corp.......................... 6,650,000
120,000 Pacific Telesis Group............... 4,050,000
130,000 SBC Communications, Inc............. 6,402,500
170,000 Southern New England
Telecommunications Corp........... 7,140,000
125,000 Sprint Corp......................... 5,250,000
65,000 Tele Danmark AS (ADR)
(Denmark)......................... 1,649,375
245,000 Tele-Communications, Inc.
(Class A)*........................ 4,410,000
80,000 Telecom Corporation
of New Zealand Ltd. (ADR)
(New Zealand)..................... 5,340,000
65,000 Telefonica de Argentina S.A. (ADR)
(Argentina)....................... 1,925,625
90,000 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR) (Mexico)......... 3,015,000
130,000 Telephone & Data Systems, Inc....... 5,850,000
40,300 Teleport Communications Group Inc.
(Class A)*........................ 760,662
100,000 Time Warner, Inc.................... 3,925,000
110,000 U.S. West Communications
Group............................. 3,506,250
150,000 U.S. West Media Group*.............. 2,737,500
90,000 WorldCom, Inc.*..................... 4,972,500
---------------
159,023,771
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
UTILITIES - ELECTRIC (40.9%)
220,000 Baltimore Gas & Electric Co......... $ 6,242,500
135,000 Carolina Power & Light Co........... 5,130,000
150,000 Central & South West Corp........... 4,350,000
235,865 CINergy Corp........................ 7,547,680
250,000 CMS Energy Corp..................... 7,718,750
130,000 Consolidated Edison Co. of New York,
Inc............................... 3,802,500
215,000 DPL, Inc............................ 5,240,625
202,500 DQE, Inc............................ 5,568,750
165,000 DTE Energy Co....................... 5,094,375
130,000 Edison International................ 2,291,250
140,000 Enova Corp.......................... 3,237,500
220,000 Entergy Corp........................ 6,242,500
140,000 FPL Group, Inc...................... 6,440,000
175,000 General Public Utilities Corp....... 6,168,750
125,000 Hawaiian Electric Industries, Inc... 4,437,500
200,000 Houston Industries, Inc............. 4,925,000
255,000 Illinova Corp....................... 7,331,250
225,000 IPALCO Enterprises, Inc............. 5,906,250
145,000 Kansas City Power & Light Co........ 3,987,500
65,000 Long Island Lighting Co............. 1,088,750
110,000 Montana Power Co.................... 2,447,500
110,000 New England Electric System......... 4,001,250
105,000 New York State Electric & Gas
Corp.............................. 2,559,375
175,000 NIPSCO Industries, Inc.............. 7,043,750
305,000 PacifiCorp.......................... 6,786,250
235,000 Pinnacle West Capital Corp.......... 7,138,125
100,000 Portland General Corp............... 3,087,500
90,000 Potomac Electric Power Co........... 2,385,000
205,000 Public Service Company of
Colorado.......................... 7,533,750
240,000 Public Service Company of
New Mexico........................ 4,920,000
145,000 Public Service Enterprise Group,
Inc............................... 3,969,375
55,000 Puget Sound Power & Light Co........ 1,333,750
180,000 SCANA Corp.......................... 5,062,500
275,000 Southern Co......................... 6,771,875
140,000 Texas Utilities Co.................. 5,985,000
110,000 United Illuminating Co.............. 4,111,250
200,000 Western Resources, Inc.............. 5,975,000
205,000 Wisconsin Energy Corp............... 5,919,375
---------------
189,782,055
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$330,679,925)..................... 405,643,951
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
CORPORATE BONDS (8.8%)
NATURAL GAS (2.3%)
$ 3,000 Coastal Corp. 7.75% due 10/15/35.... 2,909,310
3,000 Norsk Hydro AS 7.15% due 11/15/25
(Norway).......................... 2,811,270
2,000 Panhandle Eastern Corp.
8.625% due 04/15/25............... 2,047,680
3,000 Tenneco, Inc. 7.25% due 12/15/25.... 2,809,830
---------------
10,578,090
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS (3.7%)
$ 3,000 Alltel Corp. 6.75% due 09/15/05..... $ 2,906,310
2,000 BellSouth Telecommunications, Inc.
7.625% due 05/15/35............... 1,956,660
5,000 Century Telephone Enterprises, Inc.
8.25% due 05/01/24................ 5,025,200
1,400 Century Telephone Enterprises, Inc.
7.20% due 12/01/25................ 1,306,242
2,000 Southwestern Bell Telephone Co.
7.20% due 10/15/26................ 1,880,320
2,000 Sprint Corp. 9.25% due 04/15/22..... 2,346,800
2,000 TCI Communications, Inc.
8.75% due 08/01/15................ 1,964,900
---------------
17,386,432
---------------
UTILITIES - ELECTRIC (2.8%)
2,000 Florida Power & Light Co.
7.05% due 12/01/26................ 1,836,620
3,000 Illinois Power Co.
8.75% due 07/01/21................ 3,076,560
3,000 Indianapolis Power Co.
7.05% due 02/01/24................ 2,739,330
1,500 Long Island Lighting Co.
9.625% due 07/01/24............... 1,496,250
2,000 South Carolina Electric & Gas Co.
7.625% due 06/01/23............... 1,938,380
2,000 Union Electric Co.
8.00% due 12/15/22................ 1,967,080
---------------
13,054,220
---------------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $41,891,441)................. 41,018,742
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
PREFERRED STOCKS (0.6%)
TELECOMMUNICATIONS (0.0%)
7,000 GTE Delaware Corp. (Series A)
$2.3125........................... 187,250
---------------
UTILITIES - ELECTRIC (0.6%)
20,000 Alabama Power Capital Trust I
(Series Q) $1.84.................. 460,000
40,000 Arizona Public Service Co. (Series
A) $2.50.......................... 1,085,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
1,022 Cleveland Electric Illuminating Co.
(Series N) $9.125................. $ 102,967
25,600 Connecticut Light & Power Capital
(Series A) $2.325................. 630,400
14,000 Duquesne Capital LP
(Series A) $2.09.................. 341,250
---------------
2,619,617
---------------
TOTAL PREFERRED STOCKS (IDENTIFIED
COST $2,767,494).................. 2,806,867
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<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)...... 1,256,250
---------------
SHORT-TERM INVESTMENTS (2.3%)
U.S. GOVERNMENT AGENCY (A) (2.2%)
10,150 Federal Farm Credit Bank
5.45% due 07/01/96................ 10,150,000
---------------
REPURCHASE AGREEMENT (0.1%)
449 The Bank of New York 5.125% due
07/01/96 (dated 06/28/96; proceeds
$449,620; collateralized by
$456,453 U.S. Treasury Note 5.25%
due 07/31/98 valued at $458,417)
(Identified Cost $449,428)........ 449,428
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $10,599,428)..... 10,599,428
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $387,188,288) (B)......... 99.3% 461,325,238
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.7 3,314,811
---------- -------------
NET ASSETS....................... 100.0% $ 464,640,049
---------- -------------
---------- -------------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
* 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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $85,134,013 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $10,997,063, RESULTING IN NET
UNREALIZED APPRECIATION OF $74,136,950.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------------
<C> <S> <C>
COMMON STOCKS (96.1%)
AEROSPACE (3.9%)
385,000 Raytheon Co....................... $ 19,875,625
181,500 United Technologies Corp.......... 20,872,500
-----------------
40,748,125
-----------------
ALUMINUM (1.9%)
347,000 Aluminum Co. of America........... 19,909,125
-----------------
AUTO PARTS (1.8%)
213,000 TRW, Inc.......................... 19,143,375
-----------------
AUTOMOTIVE (3.8%)
604,000 Ford Motor Co..................... 19,554,500
391,200 General Motors Corp............... 20,489,100
-----------------
40,043,600
-----------------
BANKS (5.7%)
591,000 Banc One Corp..................... 20,094,000
268,100 BankAmerica Corp.................. 20,308,575
511,000 KeyCorp........................... 19,801,250
-----------------
60,203,825
-----------------
BEVERAGES - SOFT DRINKS (2.0%)
582,000 PepsiCo Inc....................... 20,588,250
-----------------
CHEMICALS (5.6%)
261,600 Dow Chemical Co................... 19,881,600
323,000 Eastman Chemical Co............... 19,662,625
270,500 Grace (W.R.) & Co................. 19,171,687
-----------------
58,715,912
-----------------
COMPUTERS - SYSTEMS (1.9%)
200,000 International Business Machines
Corp............................ 19,800,000
-----------------
CONGLOMERATES (3.9%)
296,000 Minnesota Mining & Manufacturing
Co.............................. 20,424,000
392,600 Tenneco, Inc...................... 20,071,675
-----------------
40,495,675
-----------------
COSMETICS (2.0%)
336,000 Gillette Co....................... 20,958,000
-----------------
DRUGS (5.9%)
470,000 Abbott Laboratories............... 20,445,000
347,000 American Home Products Corp....... 20,863,375
231,200 Bristol-Myers Squibb Co........... 20,808,000
-----------------
62,116,375
-----------------
ELECTRIC - MAJOR (3.6%)
236,000 General Electric Co............... 20,414,000
930,000 Westinghouse Electric Corp........ 17,437,500
-----------------
37,851,500
-----------------
FINANCIAL - MISCELLANEOUS (2.0%)
278,000 Household International, Inc...... 21,128,000
-----------------
FOODS (3.7%)
561,400 Quaker Oats Company (The)......... 19,157,775
609,000 Sara Lee Corp..................... 19,716,375
-----------------
38,874,150
-----------------
HOUSEHOLD PRODUCTS (1.9%)
225,000 Procter & Gamble Co............... 20,390,625
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------------
<C> <S> <C>
INSURANCE (1.9%)
279,500 Aetna Inc......................... $ 19,984,250
-----------------
MANUFACTURING - DIVERSIFIED (1.9%)
505,100 Timken Co......................... 19,572,625
-----------------
METALS & MINING (1.9%)
323,000 Phelps Dodge Corp................. 20,147,125
-----------------
NATURAL GAS (6.1%)
499,600 Burlington Resources, Inc......... 21,482,800
553,000 El Paso Natural Gas Co............ 21,290,500
644,000 PanEnergy Corp.................... 21,171,500
-----------------
63,944,800
-----------------
OFFICE EQUIPMENT (1.9%)
412,000 Pitney Bowes, Inc................. 19,673,000
-----------------
OIL - DOMESTIC (3.8%)
515,800 Ashland, Inc...................... 20,438,575
165,000 Atlantic Richfield Co............. 19,552,500
-----------------
39,991,075
-----------------
OIL INTEGRATED - INTERNATIONAL (5.8%)
229,000 Exxon Corp........................ 19,894,375
177,500 Mobil Corp........................ 19,902,188
134,300 Royal Dutch Petroleum Co. (ADR)
(Netherlands)................... 20,648,625
-----------------
60,445,188
-----------------
PAPER & FOREST PRODUCTS (3.7%)
529,000 International Paper Co............ 19,506,875
467,100 Weyerhaeuser Co................... 19,851,750
-----------------
39,358,625
-----------------
PHOTOGRAPHY (1.9%)
260,000 Eastman Kodak Co.................. 20,215,000
-----------------
RAILROADS (1.9%)
243,000 Burlington Northern Santa Fe
Corp............................ 19,652,625
-----------------
RETAIL - DEPARTMENT STORES (1.9%)
462,000 May Department Stores Co.......... 20,212,500
-----------------
RETAIL - FOOD CHAINS (2.0%)
520,700 American Stores Co................ 21,478,875
-----------------
TELECOMMUNICATIONS (5.8%)
321,800 Bell Atlantic Corp................ 20,514,750
490,000 Sprint Corp....................... 20,580,000
621,000 U.S. West Communications
Group........................... 19,794,375
-----------------
60,889,125
-----------------
TOBACCO (2.0%)
199,000 Philip Morris Companies, Inc...... 20,696,000
-----------------
UTILITIES - ELECTRIC (4.0%)
457,500 FPL Group, Inc.................... 21,045,000
746,000 Unicom Corp....................... 20,794,750
-----------------
41,839,750
-----------------
TOTAL COMMON STOCKS (IDENTIFIED
COST $805,074,154).............. 1,009,067,100
-----------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -----------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (3.5%)
$ 2,000 U.S. Treasury Bond
8.125% due 08/15/19............. $ 2,241,562
5,000 U.S. Treasury Bond
8.00% due 11/15/21.............. 5,555,469
5,000 U.S. Treasury Bond
7.125% due 02/15/23............. 5,050,000
14,000 U.S. Treasury Bond
6.25% due 08/15/23.............. 12,685,312
7,000 U.S. Treasury Bond
6.00% due 02/15/26.............. 6,209,219
5,000 U.S. Treasury Note
6.375% due 01/15/99............. 5,014,844
-----------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $37,077,101)... 36,756,406
-----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -----------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (0.4%)
U.S. GOVERNMENT AGENCY
$ 4,350 Federal Home Loan Mortgage Corp.
5.52% due 07/01/96 (Amortized
Cost $4,350,000)................. $ 4,350,000
-----------------
TOTAL INVESTMENTS (IDENTIFIED
COST $846,501,255)(B)......... 100.0% 1,050,173,506
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS.............. -- (389,181)
---------- ---------------
NET ASSETS...................... 100.0% $ 1,049,784,325
---------- ---------------
---------- ---------------
<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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $210,544,460 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $6,872,209, RESULTING IN NET
UNREALIZED APPRECIATION OF $203,672,251.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (91.4%)
ADVERTISING (2.1%)
35,500 Interpublic Group of Companies, Inc... $ 1,664,062
-------------
APPAREL (2.1%)
31,600 Cintas Corp........................... 1,666,900
-------------
AUTOMOTIVE - REPLACEMENT PARTS (2.1%)
37,300 Genuine Parts Co...................... 1,706,475
-------------
BANKING (1.5%)
23,150 Fifth Third Bancorp................... 1,244,312
-------------
BEVERAGES - ALCOHOLIC (1.7%)
18,700 Anheuser-Busch Companies, Inc......... 1,402,500
-------------
BEVERAGES - SOFT DRINKS (2.5%)
41,400 Coca Cola Co.......................... 2,023,425
-------------
BIOTECHNOLOGY (2.3%)
32,800 Medtronic Inc......................... 1,836,800
-------------
BUSINESS SYSTEMS (2.0%)
30,400 Electronic Data Systems Corp.......... 1,634,000
-------------
CHEMICALS - SPECIALTY (2.1%)
32,200 Sigma-Aldrich Corp.................... 1,706,600
-------------
COMMERCIAL SERVICES (0.7%)
12,000 Affiliated Computer Services, Inc.*... 564,000
-------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.9%)
27,000 Cisco Systems, Inc.*.................. 1,528,875
-------------
COMMUNICATIONS EQUIPMENT (0.7%)
8,800 Tellabs, Inc.*........................ 587,400
-------------
COMPUTER SERVICES (2.8%)
38,000 Automatic Data Processing, Inc........ 1,467,750
21,000 Sterling Commerce, Inc.*.............. 779,625
-------------
2,247,375
-------------
COMPUTER SOFTWARE (4.3%)
24,000 Computer Associates International,
Inc................................. 1,710,000
14,600 Microsoft Corp.*...................... 1,752,000
-------------
3,462,000
-------------
COMPUTERS - SYSTEMS (1.9%)
15,500 Hewlett-Packard Co.................... 1,544,187
-------------
CONSUMER BUSINESS SERVICES (2.3%)
32,000 Service Corp. International........... 1,840,000
-------------
CONSUMER SERVICES (0.3%)
7,000 Block (H.&R.), Inc.................... 228,375
-------------
DRUGS (4.5%)
41,000 Abbott Laboratories................... 1,783,500
29,800 Schering-Plough Corp.................. 1,869,950
-------------
3,653,450
-------------
ELECTRICAL EQUIPMENT (0.8%)
8,100 Grainger (W.W.), Inc.................. 627,750
-------------
ELECTRONICS (3.8%)
46,200 Dionex Corp.*......................... 1,489,950
32,300 Harman International Industries,
Inc................................. 1,590,775
-------------
3,080,725
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
ENTERTAINMENT/GAMING & LODGING (2.3%)
45,300 Circus Circus Enterprises, Inc.*...... $ 1,857,300
-------------
FINANCIAL - MISCELLANEOUS (3.0%)
55,500 Federal National Mortgage Assoc....... 1,859,250
7,000 Household International, Inc.......... 532,000
-------------
2,391,250
-------------
FINANCIAL SERVICES (0.8%)
20,000 Primark Corp.*........................ 652,500
-------------
FOOD WHOLESALERS (2.2%)
51,900 Sysco Corp............................ 1,777,575
-------------
FOODS (3.5%)
43,200 ConAgra, Inc.......................... 1,960,200
17,800 Wrigley (Wm.) Jr. Co. (Class A)....... 898,900
-------------
2,859,100
-------------
GOLD MINING (1.8%)
53,700 Barrick Gold Corp. (Canada)........... 1,456,613
-------------
HOTELS/MOTELS (3.8%)
22,000 HFS, Inc.*............................ 1,540,000
45,000 La Quinta Inns, Inc................... 1,507,500
-------------
3,047,500
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES (1.0%)
32,500 Heilig-Meyers Co...................... 780,000
-------------
INSURANCE (2.2%)
18,250 American International Group, Inc..... 1,799,906
-------------
MACHINERY - DIVERSIFIED (2.1%)
41,400 Thermo Electron Corp.*................ 1,723,275
-------------
MANUFACTURED HOUSING (2.3%)
94,000 Clayton Homes, Inc.................... 1,880,000
-------------
MANUFACTURING (1.8%)
63,301 Federal Signal Corp................... 1,487,574
-------------
MANUFACTURING - DIVERSIFIED (2.1%)
36,500 Sherwin-Williams Co................... 1,697,250
-------------
MEDIA GROUP (1.8%)
18,000 Clear Channel Communications,
Inc.*............................... 1,482,750
-------------
MEDICAL EQUIPMENT (1.0%)
5,900 Biomet, Inc.*......................... 83,338
33,400 Stryker Corp.......................... 755,675
-------------
839,013
-------------
OFFICE EQUIPMENT & SUPPLIES (1.1%)
46,000 Staples, Inc.*........................ 891,250
-------------
PHARMACEUTICALS (2.2%)
35,800 Johnson & Johnson..................... 1,772,100
-------------
RESTAURANTS (2.1%)
84,100 Brinker International, Inc.*.......... 1,261,500
21,000 International Dairy Queen, Inc. (Class
A)*................................. 446,250
-------------
1,707,750
-------------
RETAIL - DEPARTMENT STORES (2.3%)
72,000 Wal-Mart Stores, Inc.................. 1,827,000
-------------
RETAIL - DRUG STORES (2.2%)
52,500 Walgreen Co........................... 1,758,750
-------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
RETAIL - FOOD CHAINS (2.2%)
43,900 Albertson's Inc....................... $ 1,816,363
-------------
RETAIL - SPECIALTY (2.4%)
35,600 Home Depot, Inc....................... 1,922,400
-------------
TELECOMMUNICATION EQUIPMENT (0.6%)
5,600 U.S. Robotics Corp.*.................. 477,400
-------------
UTILITIES (2.2%)
75,233 Citizens Utilities Co. (Series A)*.... 865,177
76,162 Citizens Utilities Co. (Series B)*.... 885,388
-------------
1,750,565
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$59,020,114)........................ 73,904,395
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (7.9%)
U.S. GOVERNMENT AGENCIES (A) (7.4%)
$ 2,000 Federal Farm Credit Bank
5.45% due 07/01/96................. 2,000,000
4,000 Federal Home Loan Mortgage Corp.
5.27% due 07/03/96................. 3,998,829
-------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $5,998,829)........ 5,998,829
-------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.5%)
$ 378 The Bank of New York 5.125% due
07/01/96 (dated 06/28/96; proceeds
$378,569; collateralized by
$384,322 U.S. Treasury Bill 5.25%
due 07/31/98 valued at $385,975)
(Identified Cost $378,407)......... $ 378,407
-------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $6,377,236)....... 6,377,236
-------------
TOTAL INVESTMENTS (IDENTIFIED COST
$65,397,350) (B)................ 99.3% 80,281,631
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.7 533,393
---------- ------------
NET ASSETS........................ 100.0% $ 80,815,024
---------- ------------
---------- ------------
<FN>
- ------------------
* 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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $15,668,129 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $783,848, RESULTING IN NET
UNREALIZED APPRECIATION OF $14,884,281.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (99.6%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
463,000 Pioneer International Ltd.......... $ 1,348,553
---------------
MULTI-INDUSTRY
546,000 Southcorp Holdings Ltd............. 1,353,905
---------------
PAPER & FOREST PRODUCTS
200,000 Amcor Ltd.......................... 1,361,856
---------------
TOTAL AUSTRALIA.................... 4,064,314
---------------
CANADA (3.0%)
BANKS - COMMERCIAL
101,400 Toronto Dominion Bank.............. 1,780,970
---------------
NATURAL GAS
106,000 TransCanada Pipelines Ltd.......... 1,574,142
---------------
OIL RELATED
38,300 Imperial Oil Ltd................... 1,617,835
63,400 IPL Energy, Inc.................... 1,594,764
---------------
3,212,599
---------------
TELECOMMUNICATIONS
42,000 BCE, Inc........................... 1,655,544
---------------
TOTAL CANADA....................... 8,223,255
---------------
FRANCE (7.5%)
BANKING
15,750 Societe Generale................... 1,730,299
---------------
BUILDING & CONSTRUCTION
26,600 Lafarge S.A........................ 1,608,288
---------------
FINANCIAL SERVICES
4,500 Societe Eurafrance S.A............. 1,738,160
---------------
FOODS & BEVERAGES
10,850 Eridania Beghin-Say S.A............ 1,697,418
---------------
HOUSEHOLD PRODUCTS
12,200 BIC S.A............................ 1,731,017
---------------
MULTI-INDUSTRY
7,500 Compagnie Generale d'Industrie et
de Participations................ 1,723,603
6,500 Saint-Louis........................ 1,724,670
33,861 Worms et Compagnie................. 1,761,403
---------------
5,209,676
---------------
OIL INTEGRATED - INTERNATIONAL
23,900 Societe National Elf Aquitaine..... 1,756,316
23,300 Total S.A. (B Shares).............. 1,726,696
---------------
3,483,012
---------------
TELECOMMUNICATIONS
19,700 Alcatel Alsthom.................... 1,716,867
---------------
TELEVISION
14,603 Societe Television Francaise 1..... 1,666,647
---------------
TOTAL FRANCE....................... 20,581,384
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
GERMANY (6.6%)
BANKING
25,700 Deutsche Bank
Aktiengesellschaft............... $ 1,214,253
---------------
BUILDING & CONSTRUCTION
3,350 Bilfinger & Berger Bau AG.......... 1,411,313
---------------
CHEMICALS
4,900 BASF AG............................ 1,398,714
40,000 Bayer AG........................... 1,410,854
---------------
2,809,568
---------------
HEALTH & PERSONAL CARE
36,000 Douglas Holding AG................. 1,412,691
---------------
MACHINERY - DIVERSIFIED
4,250 IWKA AG............................ 872,925
2,500 M.A.N. AG.......................... 621,432
---------------
1,494,357
---------------
MULTI-INDUSTRY
5,600 Preussag AG........................ 1,414,791
35,400 RWE AG............................. 1,377,531
3,400 Viag AG............................ 1,354,288
---------------
4,146,610
---------------
RETAIL - DEPARTMENT STORES
3,400 Karstadt AG........................ 1,373,253
---------------
STEEL & IRON
7,400 Thyssen AG......................... 1,350,443
---------------
TEXTILES - APPAREL
1,150 Hugo Boss AG (Pref.)............... 1,320,625
---------------
UTILITIES - ELECTRIC
25,200 Veba AG............................ 1,337,308
---------------
TOTAL GERMANY...................... 17,870,421
---------------
HONG KONG (4.0%)
BANKING
146,200 HSBC Holdings PLC.................. 2,209,943
---------------
CONGLOMERATES
259,500 Swire Pacific Ltd. (Class A)....... 2,221,115
---------------
REAL ESTATE
297,000 Cheung Kong (Holdings) Ltd......... 2,139,189
---------------
TELECOMMUNICATIONS
1,252,400 Hong Kong
Telecommunications Ltd........... 2,249,084
---------------
UTILITIES - ELECTRIC
707,000 Hong Kong Electric Holdings Ltd.... 2,155,655
---------------
TOTAL HONG KONG.................... 10,974,986
---------------
ITALY (4.0%)
FINANCIAL SERVICES
219,000 Istituto Mobiliare Italiano SpA.... 1,827,379
---------------
NATURAL GAS
492,000 Italgas SpA........................ 1,836,180
---------------
OIL & GAS PRODUCTS
372,000 Ente Nazionale Idrocarburi SpA..... 1,853,938
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
TELECOMMUNICATIONS
275,000 Sirti SpA.......................... $ 1,765,808
1,070,000 Telecom Italia SpA................. 1,844,948
---------------
3,610,756
---------------
TEXTILES - APPAREL
135,200 Benetton Group SpA................. 1,745,085
---------------
TOTAL ITALY........................ 10,873,338
---------------
JAPAN (25.7%)
AUTOMOTIVE
115,000 Honda Motor Co..................... 2,977,482
122,000 Toyota Motor Corp.................. 3,047,497
---------------
6,024,979
---------------
BREWERS
244,000 Kirin Brewery Co., Ltd............. 2,980,764
---------------
BUILDING & CONSTRUCTION
263,000 Sekisui House Ltd.................. 2,997,083
---------------
COMPUTER SERVICES
308,000 NCR Japan Ltd...................... 3,060,625
---------------
ELECTRONICS & ELECTRICAL
326,000 Hitachi, Ltd....................... 3,031,452
43,000 Kyocera Corp....................... 3,038,107
166,000 Matsushita Electric Industrial
Co. Ltd.......................... 3,087,246
278,000 Matsushita Electric Works.......... 3,015,954
442,000 Mitsubishi Electric Corp........... 3,078,567
286,000 NEC Corp........................... 3,102,744
179,000 Sharp Corp......................... 3,133,194
47,000 Sony Corp.......................... 3,089,343
51,000 TDK Corp........................... 3,040,751
---------------
27,617,358
---------------
ENTERTAINMENT & LEISURE TIME
322,000 Mizuno Corp........................ 3,023,612
41,100 Nintendo Corp., Ltd................ 3,057,489
---------------
6,081,101
---------------
FOODS & BEVERAGES
165,000 House Food Industry................ 3,128,818
431,000 Snow Brand Milk Products........... 2,927,295
---------------
6,056,113
---------------
MACHINERY - DIVERSIFIED
586,000 Furukawa Co., Ltd.................. 3,071,839
353,000 Mitsubishi Heavy Industries, Ltd... 3,066,907
---------------
6,138,746
---------------
PHARMACEUTICALS
142,000 Taisho Pharmaceutical Co., Ltd..... 3,068,101
172,000 Takeda Chemical Industries......... 3,042,027
---------------
6,110,128
---------------
TRANSPORTATION
254,000 Yamato Transport Co. Ltd........... 2,987,146
---------------
TOTAL JAPAN........................ 70,054,043
---------------
MALAYSIA (2.0%)
BANKING
68,000 AMMB Holdings Berhad............... 954,290
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
BUILDING & CONSTRUCTION
274,000 Cement Industries of Malaysia...... $ 922,855
130,000 United Engineers Malaysia
Berhad........................... 901,764
---------------
1,824,619
---------------
CONGLOMERATES
331,000 Sime Darby Berhad.................. 915,758
---------------
FOODS & BEVERAGES
114,000 Nestle Malaysia Berhad............. 918,765
---------------
OIL RELATED
275,000 Esso Malaysia Berhad............... 771,853
---------------
TOTAL MALAYSIA..................... 5,385,285
---------------
NETHERLANDS (3.0%)
APPLIANCES & HOUSEHOLD DURABLES
27,900 Philips Electronics NV............. 906,215
---------------
BANKING
16,700 ABN-AMRO Holding NV................ 895,254
---------------
BUILDING & CONSTRUCTION
11,700 Koninklijke Volker Stevin NV....... 908,638
---------------
CHEMICALS
9,200 DSM NV............................. 912,624
---------------
FINANCIAL SERVICES
30,600 ING Groep NV....................... 911,535
---------------
INSURANCE
31,250 Fortis Amev NV..................... 894,320
---------------
OIL
5,800 Royal Dutch Petroleum Co........... 894,762
---------------
TELECOMMUNICATIONS
25,000 Koninklijke PTT Nederland NV....... 945,163
---------------
TEXTILES
18,900 Gamma Holding NV................... 873,822
---------------
TOTAL NETHERLANDS.................. 8,142,333
---------------
SWITZERLAND (2.0%)
BANKING
9,400 Schweizerischer Bankverein......... 1,852,993
---------------
CHEMICALS
1,525 Ciba-Geigy AG...................... 1,847,526
---------------
FOODS & BEVERAGES
1,575 Nestle AG.......................... 1,796,229
---------------
TOTAL SWITZERLAND.................. 5,496,748
---------------
UNITED KINGDOM (9.9%)
BANKING
488,000 Hambros PLC........................ 1,757,112
351,960 Lloyds TSB Group PLC............... 1,720,662
177,000 National Westminster Bank
PLC.............................. 1,686,683
---------------
5,164,457
---------------
BREWERS
132,500 Bass PLC........................... 1,659,515
163,000 Scottish & Newcastle Breweries
PLC.............................. 1,669,642
---------------
3,329,157
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
FOODS & BEVERAGES
1,053,000 Hazlewood Foods PLC................ $ 1,601,571
593,000 Hillsdown Holdings PLC............. 1,595,955
---------------
3,197,526
---------------
MULTI-INDUSTRY
634,000 Hanson PLC......................... 1,771,142
---------------
NATURAL GAS
600,000 British Gas PLC.................... 1,666,848
---------------
RETAIL - MERCHANDISING
363,000 Tesco PLC.......................... 1,661,959
---------------
STEEL & IRON
670,000 British Steel PLC.................. 1,700,138
---------------
TELECOMMUNICATIONS
315,000 British Telecommunications PLC..... 1,691,525
---------------
TOBACCO
222,000 B.A.T. Industries PLC.............. 1,726,165
---------------
UTILITIES - ELECTRIC
363,000 Scottish Hydro-Electric PLC........ 1,667,593
---------------
UTILITIES - WATER
155,000 Hyder PLC.......................... 1,707,976
121,500 Hyder PLC (Pref.).................. 183,382
191,000 Severn Trent PLC................... 1,612,590
---------------
3,503,948
---------------
TOTAL UNITED KINGDOM............... 27,080,458
---------------
UNITED STATES (30.4%)
AEROSPACE & DEFENSE
61,700 Northrop Grumman Corp.............. 4,203,312
---------------
AUTOMOTIVE
128,500 Ford Motor Co...................... 4,160,187
---------------
BANKS
55,700 BankAmerica Corp................... 4,219,275
108,800 KeyCorp............................ 4,216,000
---------------
8,435,275
---------------
CHEMICALS
129,800 Monsanto Co........................ 4,218,500
---------------
COMPUTERS - SYSTEMS
41,900 International Business Machines
Corp............................. 4,148,100
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
CONGLOMERATES
60,100 Minnesota Mining & Manufacturing
Co............................... $ 4,146,900
82,900 Tenneco, Inc....................... 4,238,262
---------------
8,385,162
---------------
MACHINERY - DIVERSIFIED
105,400 Deere & Co......................... 4,216,000
---------------
METALS & MINING
67,600 Phelps Dodge Corp.................. 4,216,550
---------------
OIL - DOMESTIC
104,900 Ashland, Inc....................... 4,156,663
---------------
OIL INTEGRATED - INTERNATIONAL
69,800 Chevron Corp....................... 4,118,200
---------------
PAPER & FOREST PRODUCTS
111,400 International Paper Co............. 4,107,875
---------------
PHARMACEUTICALS
46,400 Bristol-Myers Squibb Co............ 4,176,000
---------------
RAILROADS
61,500 Conrail, Inc....................... 4,082,063
---------------
RETAIL
41,000 Dayton-Hudson Corp................. 4,228,125
---------------
TELECOMMUNICATIONS
102,200 Sprint Corp........................ 4,292,400
---------------
TIRE & RUBBER GOODS
86,500 Goodyear Tire & Rubber Co.......... 4,173,625
---------------
TOBACCO
39,800 Philip Morris Companies, Inc....... 4,139,200
---------------
UTILITIES - ELECTRIC
145,000 Pacific Gas & Electric Co.......... 3,371,250
---------------
TOTAL UNITED STATES................ 82,828,487
---------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $242,632,323)
(A)............................ 99.6% 271,575,052
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 0.4 1,002,875
---------- -------------
NET ASSETS....................... 100.0% $ 272,577,927
---------- -------------
---------- -------------
<FN>
- ------------------
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $33,279,819 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $4,337,090, RESULTING IN NET
UNREALIZED APPRECIATION OF $28,942,729.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1996:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN EXCHANGE DELIVERY APPRECIATION
RECEIVE FOR DATE (DEPRECIATION)
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
$ 210,466 DEM 322,770 07/01/96 $ (1,340)
DEM 388,270 $ 255,256 07/01/96 (469)
Y 20,975,864 $ 192,087 07/01/96 (858)
$ 59,833 CHF 75,485 07/02/96 (411)
$ 39,388 CHF 49,377 07/02/96 (19)
$ 73,911 Y 8,116,937 07/02/96 (87)
L 49,446 $ 76,211 07/02/96 529
Y 21,226,835 $ 193,288 07/02/96 229
$ 31,535 DEM 48,071 07/03/96 (10)
L 50,401 $ 78,147 07/03/96 76
L 187,330 $ 289,744 07/03/96 993
Y 13,097,828 $ 119,310 07/03/96 98
$ 164,896 DEM 251,368 07/05/96 (54)
$ 52,917 DEM 80,693 07/05/96 (35)
$ 21,968 FRF 113,245 07/31/96 (13)
FRF 299,045 $ 57,695 07/31/96 349
-------
Net unrealized depreciation........$(1,022)
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--GLOBAL DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------- -------------- -------------
<S> <C> <C>
Aerospace & Defense....... $ 4,203,312 1.6%
Appliances & Household
Durables................ 906,215 0.3
Automotive................ 10,185,166 3.7
Banking................... 14,021,489 5.2
Banks..................... 8,435,275 3.1
Banks - Commercial........ 1,780,970 0.7
Brewers................... 6,309,921 2.3
Building & Construction... 10,098,494 3.7
Chemicals................. 9,788,218 3.6
Computer Services......... 3,060,625 1.1
Computers - Systems....... 4,148,100 1.5
Conglomerates............. 11,522,035 4.2
Electronics & Electrical.. 27,617,358 10.1
Entertainment & Leisure
Time.................... 6,081,101 2.2
Financial Services........ 4,477,074 1.7
Foods & Beverages......... 13,666,051 5.0
Health & Personal Care.... 1,412,691 0.5
Household Products........ 1,731,017 0.6
Insurance................. 894,320 0.3
Machinery - Diversified... 11,849,103 4.4
Metals & Mining........... 4,216,550 1.5
Multi-Industry............ 12,481,333 4.6
Natural Gas............... 5,077,170 1.9
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------- -------------- -------------
<S> <C> <C>
Oil....................... $ 894,762 0.3%
Oil & Gas Products........ 1,853,938 0.7
Oil - Domestic............ 4,156,663 1.5
Oil Integrated -
International........... 7,601,212 2.8
Oil Related............... 3,984,452 1.5
Paper & Forest Products... 5,469,731 2.0
Pharmaceuticals........... 10,286,128 3.8
Railroads................. 4,082,063 1.5
Real Estate............... 2,139,189 0.8
Retail.................... 4,228,125 1.6
Retail - Department
Stores.................. 1,373,253 0.5
Retail - Merchandising.... 1,661,959 0.6
Steel & Iron.............. 3,050,581 1.1
Telecommunications........ 16,161,339 5.9
Television................ 1,666,647 0.6
Textiles.................. 873,822 0.3
Textiles - Apparel........ 3,065,710 1.1
Tire & Rubber Goods....... 4,173,625 1.5
Tobacco................... 5,865,365 2.2
Transportation............ 2,987,146 1.1
Utilities - Electric...... 8,531,806 3.1
Utilities - Water......... 3,503,948 1.3
-------------- -----
$ 271,575,052 99.6%
-------------- -----
-------------- -----
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Common Stocks......................................................................... $ 270,071,045 99.1%
Preferred Stocks...................................................................... 1,504,007 0.5
-------------- -----
$ 271,575,052 99.6%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, BONDS, WARRANTS AND
RIGHTS (95.8%)
AUSTRIA (1.2%)
OIL & GAS PRODUCTS
12,000 OMV AG.......................... $ 1,214,099
---------------
TRANSPORTATION
22,000 Flughafen Wien AG............... 1,508,859
---------------
TOTAL AUSTRIA................... 2,722,958
---------------
BELGIUM (1.1%)
RETAIL
59,927 G.I.B. Holdings Ltd............. 2,687,464
---------------
DENMARK (1.5%)
AIR TRANSPORT
14,700 Kobenhavns Lufthavne AS......... 1,452,223
---------------
PHARMACEUTICALS
14,000 Novo-Nordisk AS (Series B)...... 1,979,220
---------------
TOTAL DENMARK................... 3,431,443
---------------
FINLAND (0.6%)
ELECTRONICS
36,600 Nokia AB (Series A)............. 1,349,331
---------------
FRANCE (14.0%)
BUILDING MATERIALS
15,530 IMETAL.......................... 2,200,485
---------------
ELECTRICAL EQUIPMENT
4,000 Legrand S.A. (Pref.)............ 469,721
---------------
ELECTRONICS
63,650 SGS-Thomson Microelectronics
NV*........................... 2,236,151
---------------
FINANCIAL SERVICES
10,200 Cetelem Groupe.................. 2,290,644
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
8,000 BIC S.A......................... 1,135,093
13,535 LVMH Moet-Hennessy Louis
Vuitton....................... 3,207,732
78,000 SEITA........................... 3,572,981
---------------
7,915,806
---------------
INSURANCE
48,565 Scor S.A........................ 1,890,001
---------------
PHARMACEUTICALS
39,587 Sanofi S.A...................... 2,964,415
FRF 2K Sanofi S.A. 4.00% due 01/01/00
(Conv. Pref.)................. 186,353
---------------
3,150,768
---------------
RETAIL
7,326 Carrefour Supermarche*.......... 4,100,967
12,377 Castorama Dubois
Investissement................ 2,436,001
FRF 495 Castorama Dubois Investissement
3.15% due 01/01/03 (Conv.
Pref.)........................ 115,295
---------------
6,652,263
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
STEEL & IRON
125,000 Usinor Sacilor.................. $ 1,801,485
---------------
TEXTILES
19,500 Christian Dior S.A.............. 2,535,908
3,500 Christian Dior S.A.
(Warrants due 06/30/98)*...... 73,370
6,454 Hermes International............ 1,703,696
---------------
4,312,974
---------------
TOTAL FRANCE.................... 32,920,298
---------------
GERMANY (8.6%)
AUTOMOTIVE
3,900 BMW AG.......................... 2,258,514
6,890 Volkswagen AG................... 2,556,792
---------------
4,815,306
---------------
CHEMICALS
8,200 BASF AG......................... 2,340,705
98,650 Bayer AG........................ 3,479,518
20,000 SGL Carbon AG................... 2,336,111
---------------
8,156,334
---------------
HEALTH & PERSONAL CARE
5,220 Rhoen-Klinikum AG............... 671,383
12,780 Rhoen-Klinikum AG (Pref.)....... 1,467,616
---------------
2,138,999
---------------
MANUFACTURING
28,700 Adidas AG....................... 2,408,773
---------------
MERCHANDISING
3,850 Gehe AG......................... 2,652,733
---------------
TOTAL GERMANY................... 20,172,145
---------------
ITALY (4.2%)
FOOD MANUFACTURER
1,091,000 Parmalat Finanzeria SpA......... 1,465,098
---------------
HOUSEHOLD FURNISHINGS & APPLIANCES
29,700 Industrie Natuzzi SpA (ADR)..... 1,522,125
---------------
OIL & GAS PRODUCTS
653,700 Ente Nazionale Idrocarburi
SpA........................... 3,257,846
---------------
TELECOMMUNICATIONS
1,599,750 Telecom Italia Mobile SpA....... 3,571,802
---------------
TOTAL ITALY..................... 9,816,871
---------------
NETHERLANDS (13.2%)
BANKING
51,700 ABN-AMRO Holding NV............. 2,771,534
---------------
FOOD DISTRIBUTION
51,194 Koninklijke Ahold NV............ 2,771,373
---------------
FOOD PROCESSING
20,696 Nutricia Vereenigde Bedrijven
NV............................ 2,186,240
---------------
INSURANCE
59,008 Aegon NV........................ 2,714,361
87,280 ING Groep NV.................... 2,599,960
---------------
5,314,321
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
MANUFACTURING
37,550 ASM Lithography Holding
NV*........................... $ 1,549,292
---------------
MERCHANDISING
20,000 Gucci Group NV.................. 1,294,551
---------------
MULTI-INDUSTRY
55,365 Hunter Douglas NV............... 3,774,813
---------------
PUBLISHING
241,000 Elsevier NV..................... 3,653,011
157,000 Ver Ned Uitgev Ver Bezit NV..... 2,434,892
20,335 Wegener NV...................... 2,152,866
26,232 Wolters Kluwer NV............... 2,976,757
---------------
11,217,526
---------------
TOTAL NETHERLANDS............... 30,879,650
---------------
NORWAY (0.4%)
INSURANCE
225,000 UNI Storebrand AS*.............. 1,010,412
---------------
SPAIN (6.1%)
BANKS
71,686 Banco Bilbao Vizcaya............ 2,902,109
12,946 Banco Popular Espanol S.A....... 2,306,448
---------------
5,208,557
---------------
FINANCIAL SERVICES
28,160 Corporacion Financiera Alba..... 2,341,541
---------------
OIL RELATED
20,116 Gas Natural SDG S.A.
(Series E).................... 4,220,908
---------------
UTILITIES
239,750 Iberdrola S.A................... 2,459,214
---------------
TOTAL SPAIN..................... 14,230,220
---------------
SWEDEN (9.3%)
BUSINESS SERVICES
100,000 Assa Abloy AB (Series B)........ 1,444,956
183,000 Securitas AB
(Series "B" Free)............. 3,828,682
---------------
5,273,638
---------------
HEALTH & PERSONAL CARE
131,868 Getinge Industrier AB
(B Shares).................... 2,481,035
---------------
INSURANCE
122,381 Scandia Forsakrings AB.......... 3,232,768
---------------
MACHINERY
100,000 Kalmar Industries AB............ 2,107,228
---------------
PHARMACEUTICALS
45,525 Astra AB (Series "A" Free)...... 2,007,710
---------------
RETAIL
40,160 Hennes & Mauritz AB
(B Shares).................... 3,717,511
---------------
TELECOMMUNICATION EQUIPMENT
133,400 Ericsson (L.M.) Telephone Co. AB
(Series "B" Free)............. 2,871,279
---------------
TOTAL SWEDEN.................... 21,691,169
---------------
SWITZERLAND (5.8%)
BUSINESS SERVICES
400 Societe Generale de Surveillance
Holdings S.A.................. 956,105
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
INSURANCE
2,000 Schweizerische
Rueckversicherungs-
Gesellschaft.................. $ 2,051,078
---------------
MULTI-INDUSTRY
2,260 ABB AG.......................... 2,792,083
---------------
PHARMACEUTICALS
1,294 Ciba-Geigy AG................... 1,574,900
365 Roche Holdings AG............... 2,780,467
2,050 Sandoz AG....................... 2,341,221
1,000 Sandoz AG (Series B)............ 1,135,674
---------------
7,832,262
---------------
TOTAL SWITZERLAND............... 13,631,528
---------------
UNITED KINGDOM (29.8%)
AEROSPACE & DEFENSE
133,333 British Aerospace PLC........... 2,013,456
---------------
AUTOMOTIVE
405,000 BBA Group PLC................... 1,935,022
450,000 Rolls-Royce PLC................. 1,557,432
---------------
3,492,454
---------------
BANKING
225,000 Abbey National PLC.............. 1,896,156
100,000 National Westminster Bank
PLC........................... 952,928
180,000 TSB Group PLC................... 879,984
---------------
3,729,068
---------------
BREWERS
145,000 Scottish & Newcastle Breweries
PLC........................... 1,485,264
235,000 Vaux Group PLC.................. 1,035,805
---------------
2,521,069
---------------
BROADCAST MEDIA
147,000 British Sky Broadcasting Group
PLC........................... 1,003,834
155,000 Flextech PLC*................... 1,222,045
---------------
2,225,879
---------------
BUILDING & CONSTRUCTION
313,000 Blue Circle Industries PLC...... 1,748,794
207,400 CRH PLC......................... 2,098,689
217,800 Williams Holdings PLC........... 1,139,146
---------------
4,986,629
---------------
BUSINESS SERVICES
150,000 Reuters Holdings PLC............ 1,813,512
---------------
CHEMICALS
306,000 Albright & Wilson PLC........... 845,343
---------------
COMPUTER SOFTWARE & SERVICES
151,500 Sage Group (The) PLC............ 1,147,425
96,000 SEMA Group PLC.................. 1,095,091
---------------
2,242,516
---------------
COMPUTERS
350,000 Amstrad PLC..................... 1,048,376
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
CONGLOMERATES
152,000 BTR PLC......................... $ 596,837
415,000 Tomkins PLC..................... 1,558,674
---------------
2,155,511
---------------
ELECTRICAL EQUIPMENT
145,250 The BICC Group PLC.............. 703,335
---------------
FOOD PROCESSING
275,000 Associated British Foods PLC.... 1,651,716
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
94,261 B.A.T. Industries PLC........... 732,928
187,000 Grand Metropolitan PLC.......... 1,239,256
177,500 Tate & Lyle PLC................. 1,261,698
---------------
3,233,882
---------------
FOREST PRODUCTS, PAPER & PACKAGING
90,000 De La Rue PLC................... 828,302
---------------
INSURANCE
55,000 Britannic Assurance PLC......... 613,738
123,057 Commercial Union PLC............ 1,103,413
261,200 Prudential Corp. PLC............ 1,645,853
213,000 Royal Insurance Holdings PLC.... 1,315,692
100,000 Sun Alliance Group PLC.......... 578,896
---------------
5,257,592
---------------
LEISURE
180,000 Granada Group PLC............... 2,402,496
---------------
METALS & MINING
125,750 Smiths Industries PLC........... 1,375,906
---------------
MISCELLANEOUS
146,000 Vendome Luxury Group PLC
(Units)++..................... 1,355,020
---------------
NATURAL GAS
240,000 British Gas PLC................. 666,739
---------------
OIL RELATED
591,000 Lasmo PLC....................... 1,605,156
245,000 Shell Transport & Trading Co.
PLC........................... 3,589,466
---------------
5,194,622
---------------
PHARMACEUTICALS
17,050 British Biotech PLC*............ 653,602
2,131 British Biotech PLC (Rights)*... 12,899
279,100 Glaxo Wellcome PLC.............. 3,755,525
554,166 Medeva PLC...................... 2,167,365
---------------
6,589,391
---------------
REAL ESTATE
205,100 Hammerson PLC................... 1,165,034
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
RETAIL
74,000 Boots Co. PLC................... $ 663,821
100,000 Great Universal Stores PLC...... 1,014,232
247,000 Morrison (W.M.) Supermarkets
PLC........................... 596,100
214,000 Next PLC........................ 1,869,881
140,000 W.H. Smith Group PLC
(Class A)..................... 1,029,907
---------------
5,173,941
---------------
TELECOMMUNICATIONS
674,700 British Telecommunications
PLC........................... 3,623,085
400,635 Securicor Group PLC
(Class A)..................... 1,625,969
---------------
5,249,054
---------------
TRANSPORTATION
140,500 British Airways PLC............. 1,205,850
---------------
UTILITIES
180,000 Scottish Power PLC.............. 846,461
---------------
TOTAL UNITED KINGDOM............ 69,973,154
---------------
TOTAL COMMON AND PREFERRED
STOCKS, BONDS, WARRANTS AND
RIGHTS
(IDENTIFIED COST
$178,129,189)................... 224,516,643
---------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY
AMOUNT (IN
THOUSANDS)
- ---------------
<C> <S> <C>
PURCHASED PUT OPTION ON FOREIGN CURRENCY (0.1%)
FRF 16,500 November 5, 1996/FRF 5.192
(Identified Cost $333,300).... 194,700
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (3.0%)
U.S. GOVERNMENT AGENCY
$ 7,000 Federal Home Loan Mortgage Corp.
5.26% due 07/03/96 (Amortized
Cost $6,997,954).............. 6,997,954
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $185,460,443) (B)......... 98.9% 231,709,297
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 1.1 2,480,229
---------- -------------
NET ASSETS....................... 100.0% $ 234,189,526
---------- -------------
---------- -------------
<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 STOCKS 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 APPROXIMATES IDENTIFIED
COST. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $49,619,563 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $3,370,709, RESULTING IN NET
UNREALIZED APPRECIATION OF $46,248,854.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1996:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN EXCHANGE DELIVERY APPRECIATION
RECEIVE FOR DATE (DEPRECIATION)
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
CHF 1,294,749 $ 1,033,319 07/01/96 $ (2,314)
$ 270,304 L 174,165 07/01/96 (122)
CHF 1,287,990 $ 1,027,925 07/02/96 (657)
$ 195,576 DEM 298,038 07/02/96 90
L 154,356 $ 239,560 07/02/96 1,482
L 28,096 $ 43,605 07/03/96 90
-------
Net unrealized
depreciation................$(1,431)
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EUROPEAN GROWTH
SUMMARY OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------- -------------- -------------
<S> <C> <C>
Aerospace & Defense....... $ 2,013,456 0.9%
Air Transport............. 1,452,223 0.6
Automotive................ 8,307,760 3.5
Banking................... 6,500,602 2.8
Banks..................... 5,208,557 2.2
Brewers................... 2,521,069 1.1
Broadcast Media........... 2,225,878 1.0
Building & Construction... 4,986,629 2.1
Building Materials........ 2,200,485 1.0
Business Services......... 8,043,256 3.4
Chemicals................. 9,001,677 3.8
Computer Software &
Services................ 2,242,516 1.0
Computers................. 1,048,376 0.4
Conglomerates............. 2,155,511 0.9
Electrical Equipment...... 1,173,056 0.5
Electronics............... 3,585,482 1.5
Financial Services........ 4,632,186 2.0
Food Distribution......... 2,771,373 1.2
Food Manufacturer......... 1,465,098 0.6
Food Processing........... 3,837,956 1.7
Food, Beverage, Tobacco &
Household Products...... 11,149,690 4.8
Foreign Currency Put
Option.................. 194,700 0.1
Forest Products, Paper &
Packaging............... 828,302 0.3
Health & Personal Care.... 4,620,034 2.0
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------- -------------- -------------
<S> <C> <C>
Household Furnishings &
Appliances.............. $ 1,522,125 0.7%
Insurance................. 18,756,171 8.0
Leisure................... 2,402,496 1.0
Machinery................. 2,107,228 0.9
Manufacturing............. 3,958,065 1.6
Merchandising............. 3,947,284 1.6
Metals & Mining........... 1,375,906 0.6
Miscellaneous............. 1,355,020 0.5
Multi-Industry............ 6,566,896 2.8
Natural Gas............... 666,739 0.2
Oil & Gas Products........ 4,471,946 1.8
Oil Related............... 9,415,529 4.1
Pharmaceuticals........... 21,559,351 9.3
Publishing................ 11,217,526 4.8
Real Estate............... 1,165,034 0.5
Retail.................... 18,231,179 7.8
Steel & Iron.............. 1,801,485 0.8
Telecommunication
Equipment............... 2,871,278 1.2
Telecommunications........ 8,820,856 3.8
Textiles.................. 4,312,974 1.9
Transportation............ 2,714,708 1.2
U.S. Government Agency.... 6,997,954 3.0
Utilities................. 3,305,675 1.4
-------------- -----
$ 231,709,297 98.9%
-------------- -----
-------------- -----
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C>
Common Stocks......................................................................... $ 222,191,389 94.9%
Convertible Preferred Stocks.......................................................... 301,648 0.1
Foreign Currency Put Option........................................................... 194,700 0.1
Preferred Stocks...................................................................... 1,937,337 0.8
Rights................................................................................ 12,899 --
Short-Term Investment................................................................. 6,997,954 3.0
Warrants.............................................................................. 73,370 --
-------------- -----
$ 231,709,297 98.9%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS, RIGHTS
AND BONDS (96.2%)
AUSTRALIA (1.5%)
COMMERCIAL SERVICES
75,000 Mayne Nickless Ltd............. $ 438,667
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
99,000 Fosters Brewing Group Ltd.
(New)........................ 170,673
---------------
METALS & MINING
18,000 CRA Ltd........................ 277,157
200,000 M.I.M. Holdings, Ltd........... 258,202
130,000 North Ltd...................... 373,526
38,750 Odin Mining & Investment Co.,
Ltd.......................... 7,779
---------------
916,664
---------------
OIL RELATED
100,000 Santos, Ltd.................... 346,368
50,000 Woodside Petroleum Ltd......... 300,710
---------------
647,078
---------------
TRANSPORTATION
14,500 Brambles Industries, Ltd....... 201,807
---------------
TOTAL AUSTRALIA................ 2,374,889
---------------
CHINA (0.6%)
TRANSPORTATION
160,000 Jinhui Shipping and
Transportation Ltd........... 152,561
---------------
UTILITIES
20,000 Huaneng Power International,
Inc. (ADR)*.................. 357,500
45,000 Shandong Huaneng Power Co.,
Ltd. (ADR)................... 371,250
---------------
728,750
---------------
TOTAL CHINA.................... 881,311
---------------
HONG KONG (21.5%)
BANKING
163,000 Bank of East Asia, Ltd......... 595,966
80,000 Dao Heng Bank Group Ltd........ 309,036
75,000 Guoco Group Ltd................ 357,549
100,000 Hang Seng Bank Ltd............. 1,007,726
92,000 HSBC Holdings PLC.............. 1,390,662
500,000 International Bank of Asia..... 322,989
---------------
3,983,928
---------------
BUSINESS SERVICES
350,000 First Pacific Co. Ltd.......... 538,100
---------------
CONGLOMERATES
150,000 Citic Pacific, Ltd............. 606,573
106,136 Henderson China Holding
Ltd.*........................ 237,223
425,000 Hutchison Whampoa, Ltd......... 2,674,027
60,000 Jardine Matheson Holdings
Ltd.......................... 441,000
120,170 New World Infrastructure
Ltd.*........................ 256,170
234,000 Swire Pacific Ltd. (Class A)... 2,002,855
---------------
6,217,848
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
ELECTRONIC & ELECTRICAL EQUIPMENT
250,000 ASM Pacific Technology Ltd..... $ 197,023
---------------
ENGINEERING & CONSTRUCTION
600,000 Road King Infrastructure
Ltd.*........................ 657,768
---------------
FINANCIAL SERVICES
$ 425K Henderson Capital International
4.50% due 10/27/96 (Conv.)... 358,062
1,000,000 Manhattan Card Co. Ltd......... 478,024
$ 120 K Paliburg International Finance
- 144A** 3.50% due 02/06/01
(Conv.)...................... 116,700
---------------
952,786
---------------
FOOD PROCESSING
1,000,000 Tingyi Holding Co.............. 274,541
---------------
HOTELS/MOTELS
224,000 Shangri-La Asia Ltd............ 313,997
---------------
INSURANCE
389,000 National Mutual Asia Ltd....... 341,748
---------------
INVESTMENT COMPANIES
800,000 Guangdong Investments.......... 506,447
---------------
LEISURE
1,775,000 CDL Hotels International,
Ltd.......................... 974,620
---------------
OIL RELATED
505,000 Hong Kong & China Gas
Co........................... 805,761
39,500 Hong Kong & China Gas
Co. (Warrants due
09/30/97)*................... 10,334
---------------
816,095
---------------
PUBLISHING
550,000 South China Morning Post
(Holdings) Ltd............... 376,605
---------------
REAL ESTATE
487,000 Amoy Properties, Ltd........... 588,286
442,000 Cheung Kong (Holdings)
Ltd.......................... 3,183,574
200,000 Great Eagle Holding Co......... 585,256
330,000 Henderson Investment, Ltd...... 296,310
119,000 Henderson Land Development Co.
Ltd.......................... 891,708
380,000 Hong Kong Land Holdings
Ltd.......................... 855,000
125,000 Hysan Development Co.
Ltd.......................... 382,742
6,250 Hysan Development Co.
Ltd. (Warrants due
04/30/98)*................... 3,311
90,000 New Asia Realty & Trust Co.
(Class A).................... 290,690
155,000 New World Development.......... 718,909
285,000 Sun Hung Kai Properties
Ltd.......................... 2,881,224
167,000 Wharf (Holdings) Ltd........... 597,646
---------------
11,274,656
---------------
RETAIL
266,000 Dickson Concepts International
Ltd.......................... 340,224
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
RETAIL - SPECIALTY
480,000 Giordano International Ltd..... $ 465,104
---------------
TELECOMMUNICATIONS
1,303,400 Hong Kong Telecommunications
Ltd.......................... 2,340,671
---------------
TRANSPORTATION
200,000 Cathay Pacific Airways......... 366,916
944,000 The Guangshen Railway Co.,
Ltd.......................... 356,735
---------------
723,651
---------------
UTILITIES
70,500 China Light & Power Co.
Ltd.......................... 319,701
300,000 Consolidated Electric Power
Asia Ltd..................... 496,111
240,000 Hong Kong Electric Holdings
Ltd.......................... 731,764
---------------
1,547,576
---------------
TOTAL HONG KONG................ 32,843,388
---------------
INDONESIA (8.3%)
AUTOMOTIVE
530,000 PT Astra International......... 769,024
1,250,000 PT Gadjah Tunggal.............. 618,014
---------------
1,387,038
---------------
BANKING
300,000 PT Bank Dagang Nasional
Indonesia.................... 251,505
220,000 PT Bank Internasional
Indonesia.................... 1,087,704
---------------
1,339,209
---------------
BUILDING & CONSTRUCTION
170,000 PT Indocement.................. 584,695
---------------
BUILDING MATERIALS
688,380 PT Mulia Industrindo........... 1,021,028
275,352 PT Mulia Industrindo
(Nil Paid) (Rights)*......... 207,165
200,000 PT Semen Gresik
(Alien Market)............... 582,545
---------------
1,810,738
---------------
COMMERCIAL SERVICES
300,000 PT Steady Safe................. 432,072
---------------
CONSTRUCTION EQUIPMENT
340,000 PT United Tractors............. 537,188
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
130,000 PT Hanjaya Mandala
Sampoerna.................... 1,481,083
121,775 PT Indofood Sukses
Makmur....................... 549,715
---------------
2,030,798
---------------
FOREST PRODUCTS, PAPER & PACKAGING
500,000 PT Indah Kiat Pulp Paper
Corp......................... 489,037
6,144 PT Pabrikkertas Tjiwi Kimia.... 6,274
---------------
495,311
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
INVESTMENT COMPANIES
1 Peregrine Indonesia*
(Units)++***................. $ 445,000
---------------
MACHINERY
300,000 PT Bukaka Teknik Utama......... 451,419
---------------
METALS
660,000 PT Tambang Timah............... 1,220,120
---------------
PHARMACEUTICALS
90,000 PT Tempo Scan Pacific.......... 193,465
---------------
PHOTOGRAPHY
95,000 PT Modern Photo &
Film Co...................... 408,427
---------------
TELECOMMUNICATIONS
240,000 PT Indosat..................... 807,395
300,000 PT Telekomunikasi Indonesia.... 454,643
---------------
1,262,038
---------------
TOTAL INDONESIA................ 12,597,518
---------------
JAPAN (13.2%)
AEROSPACE & DEFENSE
35,000 Ishikawajima-Harima Heavy
Industry..................... 170,708
---------------
AUTOMOTIVE
1,000 Autobacs Seven Co.............. 96,636
11,000 Honda Motor Co................. 284,803
46,000 Isuzu Motors Ltd............... 262,522
12,000 Toyota Motor Corp.............. 299,754
---------------
943,715
---------------
BANKING
17,000 Asahi Bank, Ltd................ 196,827
11,450 Bank of Tokyo - Mitsubishi
Ltd.......................... 265,138
6,000 Bank of Tokyo - Mitsubishi
Ltd.*........................ 139,484
9,000 Dai-Ichi Kangyo Bank........... 167,381
15,000 Long Term Credit Bank of
Japan........................ 116,100
20,000 Mitsui Trust & Banking......... 233,385
13,000 Sanwa Bank, Ltd................ 240,587
15,000 Shizuoka Bank.................. 192,816
10,000 Sumitomo Bank.................. 193,272
14,000 Sumitomo Trust & Banking....... 191,449
---------------
1,936,439
---------------
BUILDING & CONSTRUCTION
3,000 Higashi Nihon House............ 52,512
3,300 Japan Industrial Land
Development.................. 103,191
22,000 Kajima Corp.................... 226,639
5,000 Kaneshita Construction......... 63,816
11,000 Maeda Road Construction........ 189,534
5,000 Mitsui Home Co., Ltd........... 81,138
---------------
716,830
---------------
BUILDING MATERIALS
4,400 Oriental Construction Co....... 73,407
28,000 Sanwa Shutter.................. 262,923
10,000 Shin Nikkei Co., Ltd........... 74,756
9,000 Toyo Shutter................... 85,331
---------------
496,417
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
BUSINESS SERVICES
6,000 Ichiken Co., Ltd............... $ 58,529
2,000 Nippon Kanzai.................. 61,264
1,900 Nissin Co. Ltd................. 84,876
3,000 Secom.......................... 198,013
5,000 Tanseisha Co................... 68,830
---------------
471,512
---------------
CHEMICALS
2,000 Maezawa Kasei Industries....... 85,878
37,000 Mitsubishi Chemical Corp....... 170,681
33,000 Nippon Zeon Co. Ltd............ 204,577
12,000 Sakai Chemical Industry Co..... 77,673
9,450 Shin-Etsu Chemical Co.......... 180,919
---------------
719,728
---------------
COMMERCIAL SERVICES
6,000 Kawasho Lease System
Corp......................... 71,109
2,200 Nichii Gakkan Co............... 114,322
---------------
185,431
---------------
COMPUTER SOFTWARE & SERVICES
2,000 Enix Corp...................... 62,540
5,000 Ines........................... 93,445
4,000 Meitec......................... 90,801
5 NTT Data Communications Systems
Corp......................... 149,512
---------------
396,298
---------------
COMPUTERS
16,000 Fujitsu, Ltd................... 145,866
1,200 Mars Engineering Corp.......... 94,630
500 TKC Corp....................... 14,769
---------------
255,265
---------------
COMPUTERS - SYSTEMS
3,000 Daiwabo Information Systems
Co........................... 73,334
---------------
DATA PROCESSING
6,000 Ricoh Elemex................... 92,989
---------------
ELECTRICAL EQUIPMENT
4,000 Maspro Denkoh Corp............. 97,730
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT
5,000 Aiwa Co........................ 106,208
5,000 Canon, Inc..................... 103,929
Y 9,000K Canon, Inc. 1.00% due 12/20/02
(Conv.)...................... 124,305
24,000 Hitachi, Ltd................... 223,174
3,000 Kyocera Corp................... 211,961
1,500 Mabuchi Motor Co............... 95,451
3,000 Mitsui High-Tec................ 70,016
4,000 Murata Manufacturing Co.,
Ltd.......................... 151,336
7,000 Nitto Electric Works........... 115,507
8,000 Omron Corp..................... 169,933
12,000 Sharp Corp..................... 210,047
4,100 Sony Corp...................... 269,496
---------------
1,851,363
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
ELECTRONICS
28,000 Fujikura Ltd................... $ 231,780
10,000 Nissin Electric................ 83,143
2,000 Rohm Co., Ltd.................. 132,008
3,000 Ryoyo Electro Corp............. 64,546
---------------
511,477
---------------
ENTERTAINMENT
2,000 H.I.S. Company Ltd............. 121,615
---------------
FINANCIAL SERVICES
15,000 Daiwa Securities Co., Ltd...... 192,816
1,900 Nichiei Co., Ltd. (Kyoto)...... 126,447
10,000 Nomura Securities Co. Ltd...... 195,095
2,800 Promise Co., Ltd............... 137,843
1,000 Sanyo Shinpan Finance Co.,
Ltd.......................... 63,907
3,000 Shinki Co. Ltd................. 103,929
---------------
820,037
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
3,800 Amway Japan, Ltd............... 190,537
14,000 Nippon Meat Packers, Inc....... 199,107
1,000 Plenus Company, Ltd............ 45,127
4,000 Stamina Foods.................. 38,290
4 Yoshinoya D & C Company
Ltd.......................... 53,970
---------------
527,031
---------------
FOREST PRODUCTS, PAPER & PACKAGING
10,000 Daishowa Paper Manufacturing
Co. Ltd.*.................... 77,035
---------------
HEALTH & PERSONAL CARE
5,000 Kawasumi Laboratories, Inc..... 75,668
---------------
HOUSEHOLD FURNISHINGS & APPLIANCES
3,000 Beltecno Corp.................. 35,008
6,000 Juken Sangyo Co................ 65,093
---------------
100,101
---------------
INDUSTRIALS
10,000 Nippon Thompson Co............. 86,152
16,000 Tokai Carbon Co., Ltd.*........ 88,249
---------------
174,401
---------------
INSURANCE
15,000 Tokio Marine & Fire Insurance
Co............................. 199,654
16,000 Yasuda Fire & Marine
Insurance*................... 119,464
---------------
319,118
---------------
MACHINE TOOLS
2,000 Nitto Kohki Co. Ltd............ 91,166
10,000 OSG Corp....................... 76,671
---------------
167,837
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
MACHINERY
8,000 Aichi Corp..................... $ 86,061
7,000 CKD Corp....................... 72,750
16,000 Daifuku Co. Ltd................ 245,054
4,700 Fanuc, Ltd..................... 186,817
3,000 Fuji Machine Manufacturing
Co........................... 84,511
1,700 Keyence Corp................... 230,924
Y 19,000K Minebea Co. Ltd. 0.80% due
03/31/03 (Conv.)............. 194,001
24,000 Mitsubishi Heavy Industries,
Ltd.......................... 208,515
5,000 Sansei Yusoki Co., Ltd......... 72,021
7,000 Sintokogio..................... 64,454
5,000 Takuma Co., Ltd................ 75,668
11,000 Tsudakoma...................... 77,719
---------------
1,598,495
---------------
MANUFACTURING
5,000 Arcland Sakamoto............... 78,403
8,000 Bridgestone Metalpha Corp...... 114,505
9,000 Daiwa House Industry........... 139,484
8,000 Itoki Crebio Corp.............. 72,276
1,500 KDD............................ 158,629
4,400 Nichiha Corp................... 89,051
10,000 Nippon Electric Glass Co.,
Ltd.......................... 170,480
4,000 Noritsu Koki Co. Ltd........... 202,024
4,000 Sony Music Entertainment
Inc.......................... 185,979
13,000 Tokyo Style.................... 226,365
---------------
1,437,196
---------------
MEDICAL SUPPLIES
1,100 Paramount Bed Co............... 75,112
15,000 Shimadzu Corp.................. 100,647
9,000 Terumo......................... 114,049
---------------
289,808
---------------
MERCHANDISING
3,000 Misumi Corp.................... 107,485
---------------
METALS
6,000 Takada Kiko.................... 60,717
9,200 Tokyo Steel Manufacturing...... 180,326
---------------
241,043
---------------
METALS & MINING
31,000 Nippon Light Metal Co.......... 175,786
75,000 Nippon Steel Co................ 257,088
---------------
432,874
---------------
MULTI-INDUSTRY
26,000 Mitsui & Co.................... 235,372
3,500 Trusco Nakayama Corp........... 91,257
5,000 Yamae Hisano................... 46,951
---------------
373,580
---------------
NATURAL GAS
56,000 Tokyo Gas Co., Ltd............. 204,212
---------------
OIL RELATED
16,000 General Sekiyu................. 140,760
---------------
PHARMACEUTICALS
12,500 Eisai Co. Ltd.................. 235,892
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
REAL ESTATE
8,000 Cesar Co....................... $ 79,497
5,000 Chubu Sekiwa Real Estate,
Ltd.......................... 80,682
4,000 Fuso Lexel, Inc................ 47,406
5,000 Kansai Sekiwa Real Estate...... 95,724
20,000 Mitsui Fudosan Co.............. 269,851
5,000 Sekiwa Real Estate............. 52,420
5,000 Tohoku Misawa Homes Co.,
Ltd.......................... 68,830
---------------
694,410
---------------
RETAIL
200 Belluna Co., Ltd............... 4,613
3,300 Ministop Co., Ltd.............. 87,848
3,000 Seven - Eleven Japan........... 191,175
6,000 Shimachu Co., Ltd.............. 177,774
2,000 Sundrug Co., Ltd............... 88,249
2,000 Xebio Co. Ltd.................. 74,938
---------------
624,597
---------------
RETAIL - GENERAL MERCHANDISE
2,000 Circle K Japan Co. Ltd......... 103,565
1,000 Ryohin Keikaku Co. Ltd......... 90,072
---------------
193,637
---------------
RETAIL - SPECIALTY
4,000 Aderans Co. Ltd................ 106,482
1,000 Paris Miki Inc................. 46,495
5,000 Seijo Corp..................... 147,233
---------------
300,210
---------------
TELECOMMUNICATIONS
30 DDI Corp....................... 261,464
17,000 Nippon Comsys Co............... 229,374
---------------
490,838
---------------
TEXTILES
5,000 Chuo Warehouse................. 65,640
18,000 Kuraray Co. Ltd................ 201,842
1,700 Maruco Co., Ltd................ 152,657
---------------
420,139
---------------
TRANSPORTATION
33 East Japan Railway Co.......... 172,988
17,000 Fukuyama Transporting Co....... 164,281
18,000 Kamigumi Co. Ltd............... 164,099
3,000 Kanto Seino Transportation..... 90,254
21,000 Tokyu Corp..................... 159,860
---------------
751,482
---------------
UTILITIES
5,900 Hokkaido Electric Power........ 130,167
---------------
WHOLESALE & INTERNATIONAL TRADE
2,400 Satori Electric Co. Ltd........ 83,143
---------------
WHOLESALE DISTRIBUTOR
4,000 Wakita & Co.................... 60,899
---------------
TOTAL JAPAN.................... 20,112,946
---------------
MALAYSIA (16.5%)
AGRICULTURE
245,000 Highlands & Lowlands
Berhad....................... 434,202
170,000 Lingui Developments Berhad..... 402,165
---------------
836,367
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
AUTOMOTIVE
40,000 Cycle & Carriage Bintang
Berhad....................... $ 259,824
160,000 Diversified Resources
Berhad....................... 551,724
42,000 Oriental Holdings Berhad....... 274,499
75,000 Perusahaan Otomobil Nasional
Berhad....................... 408,982
185,000 Tan Chong Motor Holdings
Berhad....................... 270,008
---------------
1,765,037
---------------
BANKING
127,600 Malayan Banking Berhad......... 1,227,907
170,000 Public Bank Berhad
(Alien Market)............... 470,329
30,000 Public Bank Berhad
(Alien Market)............... 84,225
---------------
1,782,461
---------------
BANKS - COMMERCIAL
95,000 DCB Holdings Berhad............ 325,682
37,500 DCB Holdings Berhad (Warrants
due 12/27/99)*............... 49,318
152,000 Kwong Yik Bank................. 341,299
---------------
716,299
---------------
BUILDING & CONSTRUCTION
50,000 Gamuda Berhad.................. 314,755
32,000 Hume Industries (Malaysia)
Berhad....................... 156,536
120,000 Kedah Cement Berhad............ 222,294
150,000 Malayan Cement Berhad.......... 360,866
150,000 Metacorp Berhad................ 433,039
152,000 Sungei Way Holdings
Berhad....................... 713,071
135,000 United Engineers Malaysia
Berhad....................... 936,448
---------------
3,137,009
---------------
CHEMICALS
125,000 Chemical Co. of Malaysia
Berhad....................... 400,962
31,250 Chemical Co. of Malaysia
Berhad
(Warrants due 11/07/00)* ... 39,846
---------------
440,808
---------------
CONGLOMERATES
280,000 Malaysian Resources Corp.
Berhad....................... 684,844
210,000 Renong Berhad.................. 335,124
---------------
1,019,968
---------------
CONSTRUCTION PLANT & EQUIPMENT
97,500 YTL Corp. Berhad............... 508,220
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT
39,666 Leader Universal Holdings
Berhad....................... 112,127
---------------
ENTERTAINMENT
325,000 Magnum Corporation Berhad...... 549,920
254,000 Resorts World Berhad........... 1,456,375
---------------
2,006,295
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
FINANCIAL SERVICES
266,000 Affin Holdings Berhad.......... $ 623,937
105,000 Gadek Capital Berhad........... 332,598
225,000 Public Finance Berhad.......... 405,974
72,000 Public Finance Berhad
(Rights)*.................... 40,417
50,000 Rashid Hussain Berhad.......... 183,440
---------------
1,586,366
---------------
INSURANCE
70,000 Malaysia Assurance............. 370,489
80,000 Pacific & Orient Berhad........ 224,539
---------------
595,028
---------------
MANUFACTURING
625 Box - Pak (Malaysia) Berhad.... 388
100,000 Kian Joo Can Factory Berhad.... 557,338
57,000 Malaysian Pacific Industries
Berhad....................... 237,691
31,250 O.Y.L. Industries Berhad....... 325,782
3,125 O.Y.L. Industries Berhad
(Rights)*.................... 13,783
---------------
1,134,982
---------------
MULTI-INDUSTRY
180,000 Multi-Purpose Holdings
Berhad....................... 290,136
150,000 Nylex Berhad................... 577,386
---------------
867,522
---------------
OIL & GAS PRODUCTS
160,000 Petronas Dagangan Berhad....... 433,039
---------------
PLANTATION
187,500 Kuala Lumpur Kepong
Berhad....................... 473,637
---------------
REAL ESTATE
100,000 IOI Properties Berhad.......... 314,755
277,500 Land & General Berhad.......... 684,292
268,000 Metroplex Berhad............... 287,987
225,000 Pelangi Berhad................. 221,933
300,000 Selangor Properties Berhad..... 365,678
---------------
1,874,645
---------------
TELECOMMUNICATIONS
190,000 Technology Resources Industries
Berhad*...................... 662,791
306,000 Telekom Malaysia Berhad........ 2,723,817
---------------
3,386,608
---------------
TRANSPORTATION
80,000 Konsortium Perkapalan
Berhad....................... 481,155
180,000 Malaysian Airline System
Berhad....................... 573,777
---------------
1,054,932
---------------
UTILITIES
60,000 Malakoff Berhad................ 262,229
75,000 Prime Utilities Berhad......... 565,357
12,000 Prime Utilities Berhad
(Warrants due 03/11/01)*..... 19,920
24,000 Prime Utilities Berhad 1.00%
due 03/01/01 (Loan Stock).... 6,544
145,000 Tenaga Nasional Berhad......... 610,465
---------------
1,464,515
---------------
TOTAL MALAYSIA................. 25,195,865
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
PAKISTAN (0.1%)
TELECOMMUNICATIONS
1,100 Pakistan Telecommunications
Corp. (GDS)*................. $ 126,500
---------------
PHILIPPINES (4.4%)
BANKING
12,000 Far East Bank & Trust Co....... 422,341
750 Far East Bank & Trust Co.
(Rights)*.................... 26,397
29,780 Philippine National Bank....... 498,422
204,000 Security Bank Corp............. 550,191
---------------
1,497,351
---------------
BUILDING & CONSTRUCTION
68,199 Bacnotan Consolidated
Industries................... 320,906
---------------
CONGLOMERATES
325,000 Ayala Corp. (B Shares)......... 615,436
160,000 First Philippine Holdings Corp.
(B Shares)................... 391,737
600,000 JG Summit Holdings, Inc.
(B Shares)................... 224,943
---------------
1,232,116
---------------
ENGINEERING & CONSTRUCTION
550,000 DMCI Holdings Inc.............. 394,510
---------------
FOREST PRODUCTS, PAPER & PACKAGING
577,500 Paper Industries Corp.......... 110,463
---------------
REAL ESTATE
3,000,000 Belle Corp.*................... 723,030
460,000 Fil-Estate Land, Inc.*......... 589,518
---------------
1,312,548
---------------
TELECOMMUNICATIONS
344,000 Pilipino Telephone Corp........ 526,396
---------------
UTILITIES
75,000 Manila Electric Co.
(B Shares)................... 789,021
1,300 Philippine Long Distance
Telephone Co................. 77,582
6,650 Philippine Long Distance
Telephone Co. (ADR).......... 386,531
---------------
1,253,134
---------------
TOTAL PHILIPPINES.............. 6,647,424
---------------
SINGAPORE (12.1%)
APPLIANCES & HOUSEHOLD DURABLES
300,000 Courts Ltd..................... 478,554
---------------
AUTOMOTIVE
25,000 Cycle and Carriage Ltd......... 267,636
---------------
BANKING
116,000 Development Bank of Singapore,
Ltd.......................... 1,447,430
80,000 Keppel Bank.................... 246,154
11,100 Overseas Chinese Banking Corp.,
Ltd. (Fully Paid)
(Rights)*.................... 88,926
111,000 Overseas Chinese Banking Corp.,
Ltd.......................... 1,298,476
81,000 Overseas Union Bank, Ltd....... 557,036
161,000 United Overseas Bank, Ltd...... 1,540,943
---------------
5,178,965
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
CONGLOMERATES
45,000 Keppel Corp., Ltd.............. $ 376,462
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT
320,000 Venture Manufacturing Ltd...... 589,862
80,000 Venture Manufacturing Ltd.
(Rights)*.................... 56,717
---------------
646,579
---------------
FINANCE
85,000 Hong Leong Finance Ltd......... 297,696
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
45,600 Fraser & Neave Ltd............. 472,003
---------------
HOTELS
50,000 Overseas Union Enterprise
Ltd.......................... 272,953
210,000 Republic Hotels & Resorts
Ltd.......................... 278,412
56,000 Republic Hotels & Resorts Ltd.
(Warrants due 07/12/00)*..... 32,754
---------------
584,119
---------------
MACHINERY
65,000 Van Der Horst Ltd.............. 304,147
---------------
METALS
340,000 Amtek Engineering Ltd.......... 614,676
---------------
PUBLISHING
45,200 Singapore Press Holdings....... 887,657
---------------
REAL ESTATE
12,000 Bukit Sembawang Estates
Ltd.......................... 312,230
150,000 City Developments, Ltd......... 1,169,798
160,000 DBS Land Ltd................... 549,025
165,000 Parkway Holdings Ltd........... 491,315
38,000 Singapore Land Ltd............. 257,285
320,000 United Overseas Land, Ltd...... 562,637
37,000 United Overseas Land, Ltd.
(Fully Paid) (Warrants due
06/09/97)*................... 18,362
---------------
3,360,652
---------------
RETAIL
450,000 Dairy Farm International
Holdings Ltd................. 380,250
---------------
SHIPBUILDING
60,000 Far East Levingston
Shipbuilding Ltd............. 331,797
181,000 Sembawang Corp. Ltd............ 898,263
---------------
1,230,060
---------------
STEEL & IRON
200,000 Natsteel Ltd................... 397,022
---------------
TELECOMMUNICATIONS
350,000 Singapore Telecommunications,
Ltd.......................... 933,002
---------------
TRANSPORTATION
350,000 Comfort Group Ltd.............. 347,395
166,000 Singapore Airlines Ltd......... 1,753,563
---------------
2,100,958
---------------
TOTAL SINGAPORE................ 18,510,438
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
SOUTH KOREA (5.6%)
AUTOMOTIVE
50,000 Hyundai Motor Co., Ltd. (GDR).. $ 625,000
30,450 Kia Motors Corp. (GDR)* -
144A**....................... 502,425
---------------
1,127,425
---------------
BANKING
33,000 Kangwon Bank................... 313,317
---------------
CHEMICALS
16,000 Sunkyong Ltd................... 329,470
---------------
COMMUNICATIONS - EQUIPMENT/MANUFACTURERS
3,500 LG Information & Communication
Ltd.......................... 403,514
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT
4,500 Samsung Electronics Co......... 377,867
451 Samsung Electronics Co. (GDR) -
144A**....................... 22,775
4,388 Samsung Electronics Co. -
144A** (Non-Voting).......... 106,936
135 Samsung Electronics Co. -
144A** (Voting).............. 6,800
---------------
514,378
---------------
ENGINEERING & CONSTRUCTION
30,000 Dong-Ah Construction Industrial
Co........................... 585,000
---------------
FOOD PROCESSING
5,000 Cheil Foods & Chemicals........ 326,757
---------------
INDUSTRIALS
$ 400K Kia Precisions Works 0.50% due
12/31/09 (Conv.)............. 442,000
---------------
INSURANCE
10,000 Oriental Fire & Marine
Insurance.................... 351,418
---------------
INVESTMENT COMPANIES
5,000 Atlantis Korean Smaller
Co's*........................ 217,500
---------------
MULTI-INDUSTRY
$ 250 K Kolon International Corp. 1.00%
due 12/31/08 (Conv.)......... 245,000
---------------
OIL RELATED
12,500 Yukong, Ltd. (GDS)............. 366,831
---------------
PHARMACEUTICALS
$ 800 K Dong-A Pharmaceutical Co., Ltd.
3.125% due 12/31/06
(Conv.)...................... 980,000
---------------
STEEL & IRON
35,300 Pohang Iron & Steel, Ltd.
(ADR)........................ 860,437
---------------
UTILITIES
37,000 Korea Electric Power Corp.
(ADR)........................ 897,250
---------------
WHOLESALE DISTRIBUTOR
$ 500 K Daewoo Corp. 0.25% due 12/31/08
(Conv.)...................... 520,000
---------------
TOTAL SOUTH KOREA.............. 8,480,297
---------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
TAIWAN (1.4%)
INVESTMENT COMPANIES
90 Taipei Fund.................... $ 765,000
26,000 Taiwan American Fund
(Pref.)*..................... 292,500
---------------
1,057,500
---------------
TRANSPORTATION
$ 500K U-Ming Marine Transport 1.50%
due 02/07/01 (Conv.)......... 445,000
$ 504 K Yang Ming Marine Transportation
- 144A** 2.00% due 10/06/01
(Conv.)...................... 630,000
---------------
1,075,000
---------------
TOTAL TAIWAN................... 2,132,500
---------------
THAILAND (11.0%)
BANKING
115,000 Bank of Ayudhya PCL............ 634,058
28,750 Bank of Ayudhya PCL
(Rights)*.................... 84,918
175,000 First Bangkok City Bank PCL
(Alien Market)............... 289,461
125,000 First Bangkok City Bank PCL
(Local Market)............... 206,758
265,000 Krung Thai Bank PCL............ 1,241,927
950,000 Siam City Bank Ltd............. 1,038,221
80,000 Siam Commercial Bank Co.,
Ltd.......................... 1,159,420
229,200 Thai Military Bank, Ltd........ 902,646
---------------
5,557,409
---------------
BUILDING MATERIALS
15,000 Siam Cement Co., Ltd........... 736,059
16,600 Siam City Cement Co., Ltd...... 209,200
90,000 Tipco Asphalt Co., PCL
(Alien Market)............... 531,664
20,000 Tipco Asphalt Co., PCL (Local
Market)...................... 118,147
78,750 TPI Polene Co., Ltd............ 356,658
---------------
1,951,728
---------------
CONGLOMERATES
400,000 Saha-Union PCL................. 626,181
---------------
ENERGY
90,000 Cogeneration PCL............... 393,431
---------------
ENTERTAINMENT
40,000 Grammy Entertainment PLC....... 554,505
---------------
FINANCIAL SERVICES
130,000 Dhana Siam Finance and
Securities PCL............... 721,881
80,000 Krungthai Thanakit PLC......... 356,018
4,074 SCF Finance & Securities Co.,
Ltd.......................... 9,546
13,000 Securities One, Ltd............ 119,802
3,235 Siam City Finance & Securities
Co. PLC...................... 10,765
---------------
1,218,012
---------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
75,000 Charoen Pokphand Feedmill Co.
Ltd.......................... 440,099
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- --------------- ---------------
<C> <S> <C>
INVESTMENT COMPANIES
600,000 Ruang Khao 2 Fund............. $ 301,276
---------------
METALS & MINING
35,000 Ban Pu Coal Co., Ltd.......... 1,008,979
56,300 Lanna Lignite PCL
(Alien Market).............. 492,226
20,000 Lanna Lignite PCL
(Local Market).............. 174,858
---------------
1,676,063
---------------
OIL RELATED
85,000 PTT Exploration & Production
PCL......................... 1,245,274
---------------
TELECOMMUNICATIONS
18,500 Advanced Information Service
PCL
(Alien Market) ... 289,973
20,000 Advanced Information Service
PCL
(Local Market) .... 313,485
90,000 Total Access Communication
PCL......................... 765,000
40,000 United Communication
Industry.................... 535,602
---------------
1,904,060
---------------
TRANSPORTATION
150,000 Bangkok Expressway Public Co.
(Alien Market).............. 246,633
200,000 Bangkok Expressway Public Co.
(Local Market).............. 328,844
167,400 Thai Airways International
Ltd......................... 356,002
---------------
931,479
---------------
TOTAL THAILAND................ 16,799,517
---------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS, RIGHTS AND
BONDS (IDENTIFIED COST
$137,809,043)............... 146,702,593
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------ ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (4.0%)
COMMERCIAL PAPER (0.1%)
AUTOMOTIVE - FINANCE
$ 140 Ford Motor Credit Co.
5.29% due 07/09/96............. $ 139,835
---------------
U.S. GOVERNMENT AGENCY (3.9%)
6,000 Federal Home Loan Mortgage Corp.
5.52% due 07/01/96............. 6,000,000
---------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $6,139,835).... 6,139,835
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $143,948,878) (B)......... 100.2% 152,842,428
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS................... (0.2) (321,505)
---------- -------------
NET ASSETS....................... 100.0% $ 152,520,923
---------- -------------
---------- -------------
<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.
*** PARTIALLY PAID SHARES. RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL
INVESTORS.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY STOCKS WITH ATTACHED WARRANTS.
(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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $15,914,544 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $7,020,994, RESULTING IN NET
UNREALIZED APPRECIATION OF $8,893,550.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1996:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION
TO DELIVER FOR DATE (DEPRECIATION)
- ---------------- ---------------- -------- ---------------
<S> <C> <C> <C> <C> <C>
$ 418,665 IDR 974,023,898 07/01/96 $ 90
$ 333,128 MYR 830,488 07/01/96 (134)
HKD 1,462,703 $ 188,963 07/01/96 (12)
$ 45,753 MYR 114,182 07/03/96 30
------
Net
unrealized depreciation..................... $ (26)
------
------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--PACIFIC GROWTH
SUMMARY OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Aerospace & Defense.......................... $ 170,708 0.1%
Agriculture.................................. 836,367 0.5
Appliances & Household Durables.............. 478,554 0.3
Automotive................................... 5,490,851 3.6
Automotive - Finance......................... 139,835 0.1
Banking...................................... 21,589,079 14.2
Banks - Commercial........................... 716,299 0.5
Building & Construction...................... 4,759,440 3.1
Building Materials........................... 4,258,883 2.8
Business Services............................ 1,009,612 0.7
Chemicals.................................... 1,490,006 1.0
Commercial Services.......................... 1,056,170 0.7
Communications - Equipment/
Manufacturers............................... 403,514 0.3
Computer Software & Services................. 396,298 0.3
Computers.................................... 255,265 0.2
Computers - Systems.......................... 73,334 --
Conglomerates................................ 9,472,575 6.1
Construction Plant & Equipment............... 1,045,408 0.7
Data Processing.............................. 92,989 0.1
Electrical Equipment......................... 97,730 0.1
Electronic & Electrical Equipment............ 3,321,470 2.2
Electronics.................................. 511,477 0.3
Energy....................................... 393,431 0.3
Engineering & Construction................... 1,637,278 1.1
Entertainment................................ 2,682,415 1.8
Finance...................................... 297,696 0.2
Financial Services........................... 4,577,201 3.0
Food Processing.............................. 601,298 0.4
Food, Beverage, Tobacco & Household
Products.................................... 3,640,604 2.4
Forest Products, Paper & Packaging........... 682,809 0.5
Health & Personal Care....................... 75,668 0.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Hotels....................................... $ 584,119 0.4%
Hotels/Motels................................ 313,997 0.2
Household Furnishings & Appliances........... 100,101 0.1
Industrials.................................. 616,401 0.4
Insurance.................................... 1,607,312 1.1
Investment Companies......................... 2,527,723 1.7
Leisure...................................... 974,620 0.6
Machine Tools................................ 167,837 0.1
Machinery.................................... 2,354,061 1.4
Manufacturing................................ 2,572,178 1.7
Medical Supplies............................. 289,808 0.2
Merchandising................................ 107,485 0.1
Metals....................................... 2,075,839 1.4
Metals & Mining.............................. 3,025,601 2.0
Multi-Industry............................... 1,486,102 1.0
Natural Gas.................................. 204,212 0.1
Oil & Gas Products........................... 433,040 0.3
Oil Related.................................. 3,216,038 2.1
Pharmaceuticals.............................. 1,409,357 0.9
Photography.................................. 408,427 0.3
Plantation................................... 473,637 0.3
Publishing................................... 1,264,262 0.8
Real Estate.................................. 18,516,911 12.0
Retail....................................... 1,345,071 0.9
Retail - General Merchandise................. 193,637 0.1
Retail - Specialty........................... 765,314 0.5
Shipbuilding................................. 1,230,060 0.8
Steel & Iron................................. 1,257,459 0.8
Telecommunications........................... 10,970,113 7.2
Textiles..................................... 420,139 0.3
Transportation............................... 6,991,870 4.6
U.S. Government Agency....................... 6,000,000 3.8
Utilities.................................... 6,021,392 3.8
Wholesale & International Trade.............. 83,143 0.1
Wholesale Distributor........................ 580,898 0.4
------------ ----------
$152,842,428 100.2%
------------ ----------
------------ ----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- --------------------------------------------- ------------ ----------
<S> <C> <C>
Common Stocks................................ $141,662,857 92.9%
Convertible Bonds............................ 4,055,068 2.7
Preferred Stocks............................. 292,500 0.2
Rights....................................... 518,323 0.3
Short-Term Investment........................ 6,139,835 4.0
Warrants..................................... 173,845 0.1
------------ ----------
$152,842,428 100.2%
------------ ----------
------------ ----------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
COMMON STOCKS (92.0%)
AEROSPACE (1.3%)
47,000 Boeing Co......................... $ 4,094,875
17,300 United Technologies Corp.......... 1,989,500
---------------
6,084,375
---------------
AGRICULTURE RELATED (1.8%)
50,000 Case Corp......................... 2,400,000
50,000 IMC Global, Inc................... 1,881,250
35,000 Pioneer Hi-Bred International,
Inc............................. 1,850,625
35,000 Potash Corp. of Saskatchewan, Inc.
(Canada)........................ 2,318,750
---------------
8,450,625
---------------
APPAREL & FOOTWEAR (1.4%)
27,018 Fila Holding SpA (ADR) (Italy).... 2,330,302
45,100 Jones Apparel Group, Inc.*........ 2,215,537
40,000 Nine West Group, Inc.............. 2,045,000
---------------
6,590,839
---------------
AUTO RELATED (1.8%)
74,900 AutoZone, Inc.*................... 2,602,775
40,000 Chrysler Corp..................... 2,480,000
80,000 Harley-Davidson, Inc.............. 3,290,000
---------------
8,372,775
---------------
AUTOMOTIVE (0.5%)
72,000 Ford Motor Co..................... 2,331,000
---------------
BANKS (1.9%)
60,000 BankAmerica Corp.................. 4,545,000
20,000 Corestates Financial Corp......... 770,000
10,000 First Bank System, Inc............ 580,000
15,000 Firstar Corp...................... 691,875
24,300 NationsBank Corp.................. 2,007,787
---------------
8,594,662
---------------
BANKS - MONEY CENTER (0.7%)
40,700 Citicorp.......................... 3,362,837
---------------
BEVERAGES - ALCOHOLIC (0.5%)
30,000 Anheuser-Busch Companies,
Inc............................. 2,250,000
---------------
BEVERAGES - SOFT DRINKS (1.5%)
60,000 Coca Cola Co...................... 2,932,500
115,000 PepsiCo Inc....................... 4,068,125
---------------
7,000,625
---------------
BIOTECHNOLOGY (2.1%)
3,100 Aksys, Ltd.*...................... 45,725
20,000 Amgen Inc.*....................... 1,075,000
19,000 Biochem Pharma, Inc.*............. 710,125
80,000 Centocor, Inc.*................... 2,390,000
89,100 Guidant Corp...................... 4,388,175
27,700 Interneuron Pharmaceuticals,
Inc.*........................... 817,150
900 SangStat Medical Corp.*........... 15,187
---------------
9,441,362
---------------
BROKERAGE (1.4%)
40,000 Merrill Lynch & Co., Inc.......... 2,605,000
80,000 Morgan Stanley Group, Inc......... 3,930,000
---------------
6,535,000
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
BUSINESS SYSTEMS (0.1%)
8,200 Electronic Data Systems Corp...... $ 440,750
---------------
CAPITAL GOODS (1.5%)
40,000 Lockheed Martin Corp.............. 3,360,000
50,600 Raychem Corp...................... 3,636,875
---------------
6,996,875
---------------
CHEMICALS (0.9%)
125,000 Monsanto Co....................... 4,062,500
---------------
COMMUNICATIONS (2.2%)
60,000 ACT Networks, Inc.*............... 1,935,000
25,000 Adtran, Inc.*..................... 1,768,750
50,000 Andrew Corp.*..................... 2,700,000
30,000 Pairgain Technologies, Inc.*...... 1,860,000
30,000 Premisys Communications,
Inc.*........................... 1,830,000
---------------
10,093,750
---------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.4%)
114,000 Cisco Systems, Inc.*.............. 6,455,250
---------------
COMMUNICATIONS - SOFTWARE & SERVICES (0.1%)
8,000 America Online, Inc.*............. 348,000
---------------
COMMUNICATIONS EQUIPMENT (1.2%)
80,000 Tellabs, Inc.*.................... 5,340,000
---------------
COMPUTER SERVICES (3.4%)
21,000 BDM International Inc............. 971,250
14,300 Boston Communications Group,
Inc............................. 232,375
54,000 Cambridge Technology Partners,
Inc.*........................... 1,647,000
19,200 Cognos, Inc.* (Canada)............ 436,800
40,000 Computer Horizons Corp.*.......... 1,570,000
3,900 First USA Paymentech, Inc......... 156,000
80,000 Gartner Group, Inc. (Class A)*.... 2,930,000
36,000 HNC Software, Inc................. 1,620,000
30,000 Keane, Inc........................ 1,106,250
3,800 NOVA Corp.*....................... 128,250
5,200 Renaissance Solutions, Inc.*...... 143,000
7,000 Sapient Corp...................... 288,750
2,600 Siebel Systems, Inc............... 78,000
88,000 Sterling Commerce, Inc.*.......... 3,267,000
12,500 Transaction Systems Architects,
Inc. (Class A).................. 837,500
---------------
15,412,175
---------------
COMPUTER SOFTWARE (7.5%)
22,500 Arbor Software Corp.*............. 1,338,750
23,000 Atria Software, Inc.*............. 1,150,000
50,000 Baan Company NV*
(Netherlands)................... 1,700,000
25,000 BMC Software, Inc.*............... 1,487,500
48,500 Business Objects S.A. (ADR)*
(France)........................ 1,952,125
32,000 Computer Associates International,
Inc............................. 2,280,000
50,000 Edify Corp.*...................... 1,300,000
29,900 Forte Software, Inc.*............. 1,562,275
50,000 Microsoft Corp.*.................. 6,000,000
90,000 Oracle Corp.*..................... 3,543,750
100,000 Parametric Technology Corp.*...... 4,325,000
30,000 Peoplesoft, Inc.*................. 2,130,000
21,000 Rational Software Corp.*.......... 1,128,750
22,000 Remedy Corp.*..................... 1,595,000
41,000 Viasoft, Inc.*.................... 2,639,375
---------------
34,132,525
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
COMPUTER SOFTWARE & SERVICES (0.5%)
55,000 Citrix Systems, Inc.*............. $ 2,076,250
---------------
CONSUMER BUSINESS SERVICES (5.7%)
32,600 AccuStaff, Inc.*.................. 888,350
40,000 Apollo Group, Inc. (Class A)*..... 1,100,000
60,000 CBT Group PLC (ADR)*
(Ireland)....................... 2,700,000
5,000 Computer Sciences Corp.*.......... 373,750
12,400 CUC International, Inc.*.......... 440,200
52,500 DST Systems, Inc.*................ 1,680,000
40,000 First Data Corp................... 3,185,000
80,000 Mirage Resorts, Inc.*............. 4,320,000
146,500 National Education Corp.*......... 2,087,625
50,000 Reuters Holdings PLC (ADR) (United
Kingdom)........................ 3,618,750
70,000 Service Corp. International....... 4,025,000
41,200 Verifone, Inc..................... 1,740,700
---------------
26,159,375
---------------
CONSUMER PRODUCTS (4.5%)
44,600 Avon Products, Inc................ 2,012,575
60,000 Callaway Golf Co.................. 1,995,000
75,000 Dial Corp......................... 2,146,875
64,800 Gillette Co....................... 4,041,900
30,000 Kimberly-Clark Corp............... 2,317,500
60,000 Kroger Co.*....................... 2,370,000
30,000 Panamerican Beverages, Inc. (Class
A) (Mexico)..................... 1,342,500
35,000 Procter & Gamble Co............... 3,171,875
30,000 Vons Companies, Inc............... 1,121,250
---------------
20,519,475
---------------
DRUGS (2.6%)
85,000 American Home Products Corp....... 5,110,625
80,000 IDEC Pharmaceuticals Corp.*....... 1,840,000
75,000 Lilly (Eli) & Co.................. 4,875,000
---------------
11,825,625
---------------
ELECTRIC - MAJOR (0.6%)
30,000 General Electric Co............... 2,595,000
---------------
ELECTRONICS (0.1%)
7,000 Intel Corp........................ 513,625
---------------
ENERGY (4.8%)
110,000 Baker Hughes Inc.................. 3,616,250
40,600 BJ Services Co.*.................. 1,426,075
21,000 Chesapeake Energy Corp.*.......... 1,887,375
46,000 Diamond Offshore Drilling, Inc.*.. 2,633,500
78,300 Global Marine, Inc.*.............. 1,086,451
50,000 Halliburton Co.................... 2,775,000
40,000 Marine Drilling Company, Inc.*.... 400,000
75,000 Reading & Bates Corp.*............ 1,659,375
80,000 Rowan Companies, Inc.*............ 1,180,000
31,000 Smith International, Inc.*........ 933,875
70,000 Tidewater, Inc.................... 3,071,250
20,000 Western Atlas, Inc.*.............. 1,165,000
---------------
21,834,151
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
ENTERTAINMENT/GAMING & LODGING (1.7%)
10,000 Circus Circus Enterprises,
Inc.*........................... $ 410,000
100,000 MGM Grand, Inc.................... 3,987,500
114,500 Showboat, Inc..................... 3,449,313
---------------
7,846,813
---------------
FINANCIAL - MISCELLANEOUS (1.3%)
18,800 Associates First Capital Corp..... 707,350
20,000 First USA, Inc.................... 1,100,000
47,800 Green Tree Financial Corp......... 1,493,750
34,960 Household International, Inc...... 2,656,960
---------------
5,958,060
---------------
HEALTH MAINTENANCE ORGANIZATIONS (0.6%)
132,500 Health Management Associates, Inc.
(Class A)*...................... 2,683,125
---------------
HEALTHCARE PRODUCTS & SERVICES (4.0%)
58,000 HBO & Co.......................... 3,915,000
20,000 Healthsouth Corp.*................ 720,000
113,000 PhyCor, Inc.*..................... 4,265,750
30,000 Physician Sales & Service,
Inc.*........................... 727,500
54,300 Renal Treatment Centers, Inc.*.... 1,561,125
32,000 RoTech Medical Corp.*............. 616,000
67,000 Shared Medical Systems Corp....... 4,304,750
12,700 Sunrise Assisted Living, Inc.*.... 304,800
21,900 Total Renal Care Holdings,
Inc.*........................... 925,275
24,800 Vivra, Inc.*...................... 815,300
---------------
18,155,500
---------------
HOTELS/MOTELS (2.4%)
56,100 HFS, Inc.*........................ 3,927,000
34,000 Hilton Hotels Corp................ 3,825,000
50,000 ITT Corp.*........................ 3,312,500
---------------
11,064,500
---------------
HOUSEHOLD PRODUCTS (0.7%)
40,000 Colgate-Palmolive Co.............. 3,390,000
---------------
HOUSING RELATED (0.5%)
80,000 Bed Bath & Beyond, Inc.*.......... 2,110,000
4,600 Oakwood Homes Corp................ 94,875
---------------
2,204,875
---------------
INSURANCE (2.3%)
71,000 Allstate Corp. (Note 3)........... 3,239,375
35,000 American International
Group, Inc...................... 3,451,875
61,000 Conseco Inc....................... 2,440,000
26,000 SunAmerica, Inc................... 1,469,000
---------------
10,600,250
---------------
INTERNET (0.5%)
29,500 Security Dynamics Technologies,
Inc.*........................... 2,419,000
---------------
MACHINERY - DIVERSIFIED (1.1%)
120,500 Thermo Electron Corp.............. 5,015,813
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
MEDIA GROUP (2.4%)
52,900 Clear Channel Communications,
Inc.*........................... $ 4,357,638
61,500 Emmis Broadcasting Corp. (Class
A)*............................. 3,044,250
30,000 Evergreen Media Corp.
(Class A)*...................... 1,267,500
71,000 Infinity Broadcasting Corp.*...... 2,130,000
3,000 Lin Television Corp.*............. 106,500
---------------
10,905,888
---------------
MEDICAL PRODUCTS & SUPPLIES (1.4%)
20,400 Becton, Dickinson & Co............ 1,637,100
50,000 IDEXX Laboratories, Inc.*......... 1,950,000
40,000 Omnicare, Inc..................... 1,060,000
42,000 Target Therapeutics, Inc.*........ 1,711,500
---------------
6,358,600
---------------
MEDICAL SUPPLIES (0.1%)
6,800 Arterial Vascular Engineering,
Inc............................. 243,100
4,200 Heartport, Inc.*.................. 126,000
---------------
369,100
---------------
OFFICE EQUIPMENT & SUPPLIES (0.2%)
26,000 Corporate Express, Inc.*.......... 1,040,000
---------------
OIL DRILLING & SERVICES (0.7%)
40,000 Schlumberger, Ltd................. 3,370,000
---------------
PHARMACEUTICALS (2.2%)
120,000 Johnson & Johnson................. 5,940,000
60,000 Pfizer, Inc....................... 4,282,500
---------------
10,222,500
---------------
RESTAURANTS (0.6%)
30,000 Cracker Barrel Old Country Store,
Inc............................. 720,000
45,300 Landry's Seafood Restaurants,
Inc.*........................... 1,087,200
26,000 Starbucks Corp.*.................. 731,250
---------------
2,538,450
---------------
RETAIL (3.5%)
37,300 Dayton-Hudson Corp................ 3,846,563
115,000 Federated Department Stores,
Inc.*........................... 3,924,375
19,000 Just For Feet, Inc.*.............. 1,007,000
70,000 Sears, Roebuck & Co............... 3,403,750
50,000 Tiffany & Co...................... 3,650,000
---------------
15,831,688
---------------
RETAIL - FOOD CHAINS (0.9%)
100,000 American Stores Co................ 4,125,000
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ---------------
<C> <S> <C>
RETAIL - SPECIALTY (1.4%)
40,000 Home Depot, Inc................... $ 2,160,000
18,500 Pacific Sunwear of California,
Inc.*........................... 434,750
94,600 Price/Costco, Inc.*............... 2,022,075
50,000 Safeway, Inc...................... 1,650,000
6,000 Urban Outfitters, Inc.*........... 148,500
---------------
6,415,325
---------------
RETAIL - SPECIALTY APPAREL (0.8%)
120,000 Gap, Inc.......................... 3,855,000
---------------
SHOES (0.8%)
35,000 Nike, Inc. (Class B).............. 3,596,250
---------------
TELECOMMUNICATION EQUIPMENT (0.7%)
38,000 U.S. Robotics Corp................ 3,239,500
---------------
TELECOMMUNICATIONS (6.0%)
90,000 Ascend Communications, Inc.*...... 5,051,250
70,000 Cascade Communications
Corp.*.......................... 4,760,000
97,000 MFS Communications Company,
Inc.*........................... 3,637,500
47,000 Newbridge Networks Corp.*
(Canada)........................ 3,078,500
1,000 Premiere Technologies, Inc.*...... 30,750
44,000 Shiva Corp.*...................... 3,509,000
52,000 Stratacom, Inc.*.................. 2,925,000
83,000 WorldCom, Inc.*................... 4,585,750
---------------
27,577,750
---------------
TOBACCO (0.7%)
30,000 Philip Morris Companies, Inc...... 3,120,000
---------------
TRANSPORTATION (2.5%)
45,000 AMR Corp.*........................ 4,095,000
40,000 Delta Air Lines, Inc.............. 3,320,000
72,000 UAL Corp.*........................ 3,870,000
---------------
11,285,000
---------------
TOTAL COMMON STOCKS (IDENTIFIED
COST $384,744,417).............. 421,007,413
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- ------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION (2.2%)
$11,200 U.S. Treasury Bond
6.00% due 02/15/26
(Identified Cost $9,735,250).... 9,934,750
---------------
SHORT-TERM INVESTMENTS (7.2%)
U.S. GOVERNMENT AGENCIES (A) (5.5%)
6,000 Federal Farm Credit Bank 5.31% -
5.45% due 07/01/96 - 07/08/96... 15,090,604
10,000 Federal Home Loan Mortgage Corp.
5.26% due 07/03/96.............. 9,997,078
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $25,087,682).... 25,087,682
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--EQUITY
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------ ---------------
<C> <S> <C>
REPURCHASE AGREEMENT (1.7%)
$ 7,681 The Bank of New York 5.125% due
07/01/96 (dated 06/28/96;
proceeds $7,684,042;
collateralized by $6,733,862
U.S. Treasury Note 7.125% due
09/30/99 valued at $6,997,836
and $832,161 U.S. Treasury Note
5.625% due 10/31/97 valued at
$836,542) (Identified Cost
$7,680,762)..................... $ 7,680,762
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $32,768,444)... 32,768,444
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $427,248,111) (B)......... 101.4% 463,710,607
LIABILITIES IN EXCESS OF OTHER
ASSETS......................... (1.4) (6,335,883)
---------- -------------
NET ASSETS....................... 100.0% $ 457,374,724
---------- -------------
---------- -------------
<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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $44,202,556 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $7,740,060, RESULTING IN NET
UNREALIZED APPRECIATION OF $36,462,496.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS (67.3%)
AEROSPACE (1.1%)
50,000 Boeing Co........................... $ 4,356,250
---------------
AEROSPACE & DEFENSE (2.2%)
80,000 Honeywell, Inc...................... 4,360,000
24,000 Rockwell International Corp......... 1,374,000
120,000 Watkins-Johnson Co.................. 3,285,000
---------------
9,019,000
---------------
ALUMINUM (0.7%)
52,000 Aluminum Co. of America............. 2,983,500
---------------
AUTOMOTIVE (2.2%)
135,000 Ford Motor Co....................... 4,370,625
87,000 General Motors Corp................. 4,556,625
---------------
8,927,250
---------------
BANKS - MONEY CENTER (1.3%)
30,000 Citicorp............................ 2,478,750
30,000 Morgan (J.P.) & Co., Inc............ 2,538,750
---------------
5,017,500
---------------
BANKS - REGIONAL (0.7%)
11,000 Wells Fargo & Co.................... 2,627,625
---------------
BEVERAGES - SOFT DRINKS (1.2%)
140,000 PepsiCo Inc......................... 4,952,500
---------------
BROKERAGE (1.3%)
40,000 Merrill Lynch & Co., Inc............ 2,605,000
50,000 Morgan Stanley Group, Inc........... 2,456,250
---------------
5,061,250
---------------
BUSINESS SYSTEMS (0.8%)
62,000 Electronic Data Systems Corp........ 3,332,500
---------------
CHEMICALS (0.9%)
108,000 Monsanto Co......................... 3,510,000
---------------
CHEMICALS - SPECIALTY (0.7%)
90,000 Georgia Gulf Corp................... 2,632,500
---------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.7%)
87,000 Bay Networks, Inc.*................. 2,240,250
80,000 Cisco Systems, Inc.*................ 4,530,000
---------------
6,770,250
---------------
COMPUTER EQUIPMENT (1.6%)
140,000 Komag Inc.*......................... 3,657,500
61,000 Seagate Technology, Inc.*........... 2,745,000
---------------
6,402,500
---------------
COMPUTER SOFTWARE (2.1%)
34,000 Microsoft Corp.*.................... 4,080,000
111,000 Oracle Corp.*....................... 4,370,625
---------------
8,450,625
---------------
COMPUTERS (1.1%)
130,000 Gateway 2000, Inc.*................. 4,403,750
---------------
COMPUTERS - SYSTEMS (1.8%)
38,000 Hewlett-Packard Co.................. 3,785,750
33,200 International Business Machines
Corp.............................. 3,286,800
---------------
7,072,550
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
DRUGS (2.5%)
88,000 American Home Products Corp......... $ 5,291,000
70,000 Lilly (Eli) & Co.................... 4,550,000
---------------
9,841,000
---------------
ELECTRIC - MAJOR (1.2%)
55,000 General Electric Co................. 4,757,500
---------------
ELECTRICAL EQUIPMENT (1.1%)
50,000 Emerson Electric Co................. 4,518,750
---------------
ENTERTAINMENT (1.2%)
170,000 Carnival Corp. (Class A)............ 4,908,750
---------------
ENTERTAINMENT/GAMING & LODGING (1.4%)
140,000 Circus Circus Enterprises, Inc.*.... 5,740,000
---------------
FINANCIAL - MISCELLANEOUS (0.8%)
90,000 Federal National Mortgage Assoc..... 3,015,000
---------------
HEALTHCARE - MISCELLANEOUS (3.1%)
190,000 Humana, Inc.*....................... 3,396,250
50,000 PacifiCare Health Systems
(Class B)*........................ 3,387,500
100,000 U.S. Healthcare, Inc................ 5,487,500
---------------
12,271,250
---------------
HOSPITAL MANAGEMENT (1.1%)
86,000 Columbia/HCA Healthcare Corp........ 4,590,250
---------------
HOUSEHOLD PRODUCTS (2.4%)
60,000 Colgate-Palmolive Co................ 5,085,000
50,000 Procter & Gamble Co................. 4,531,250
---------------
9,616,250
---------------
INDUSTRIALS (1.1%)
75,000 AlliedSignal, Inc................... 4,284,375
---------------
NATURAL GAS (0.8%)
68,000 Williams Companies, Inc............. 3,366,000
---------------
OFFICE EQUIPMENT & SUPPLIES (1.0%)
90,000 Alco Standard Corp.................. 4,072,500
---------------
OIL - DOMESTIC (0.9%)
29,000 Atlantic Richfield Co............... 3,436,500
---------------
OIL DRILLING & SERVICES (0.9%)
40,400 Schlumberger, Ltd................... 3,403,700
---------------
OIL INTEGRATED - INTERNATIONAL (3.5%)
65,000 Chevron Corp........................ 3,835,000
40,000 Exxon Corp.......................... 3,475,000
29,000 Mobil Corp.......................... 3,251,625
40,000 Texaco, Inc......................... 3,355,000
---------------
13,916,625
---------------
PHARMACEUTICALS (2.5%)
100,000 Johnson & Johnson................... 4,950,000
70,000 Pfizer, Inc......................... 4,996,250
---------------
9,946,250
---------------
RAILROADS (1.1%)
65,000 Conrail, Inc........................ 4,314,375
---------------
RETAIL (1.5%)
56,000 Dayton-Hudson Corp.................. 5,775,000
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
RETAIL - SPECIALTY (3.0%)
95,000 Home Depot, Inc..................... $ 5,130,000
155,000 Payless ShoeSource, Inc.*........... 4,921,250
81,700 Price/Costco, Inc.*................. 1,746,338
---------------
11,797,588
---------------
RETAIL - SPECIALTY APPAREL (1.3%)
166,000 Gap, Inc............................ 5,332,750
---------------
SAVINGS & LOAN ASSOCIATIONS (1.9%)
150,000 California Federal Bank*............ 2,737,500
50,000 Golden West Financial Corp.......... 2,800,000
100,000 Roosevelt Financial Group, Inc...... 1,925,000
---------------
7,462,500
---------------
SHOES (1.5%)
57,000 Nike, Inc. (Class B)................ 5,856,750
---------------
STEEL & IRON (1.4%)
246,000 Bethlehem Steel Corp.*.............. 2,921,250
133,000 Inland Steel Industries, Inc........ 2,610,125
---------------
5,531,375
---------------
TELECOMMUNICATIONS (0.8%)
73,000 GTE Corp............................ 3,266,750
---------------
TOBACCO (1.8%)
100,000 Dimon, Inc.......................... 1,850,000
50,000 Philip Morris Companies, Inc........ 5,200,000
---------------
7,050,000
---------------
UTILITIES - ELECTRIC (5.1%)
120,000 Baltimore Gas & Electric Co......... 3,405,000
110,000 CINergy Corp........................ 3,520,000
110,000 Consolidated Edison Company of New
York, Inc......................... 3,217,500
95,000 Florida Progress Corp............... 3,301,250
100,000 General Public Utilities Corp....... 3,525,000
120,000 Kansas City Power & Light Co........ 3,300,000
---------------
20,268,750
---------------
UTILITIES - GAS (1.0%)
130,000 Pacific Enterprises................. 3,851,250
---------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$240,712,504)..................... 267,711,338
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
CORPORATE BONDS (12.9%)
BANKS (1.9%)
$ 2,100 Banque Paribas of New York 8.35% due
06/15/07.......................... 2,184,126
1,000 First National Bank Corp.
7.32% due 12/01/10................ 940,860
2,160 First Nationwide Bank
10.00% due 10/01/06............... 2,430,540
2,000 First USA Bank
5.85% due 02/22/01................ 1,893,540
---------------
7,449,066
---------------
BROADCAST MEDIA (0.6%)
2,000 Time Warner, Inc.
9.625% due 05/01/02............... 2,200,140
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
BROKERAGE (0.5%)
$ 2,000 Lehman Brothers Holdings Inc. 8.05%
due 01/15/19...................... $ 2,086,100
---------------
CABLE TELEVISION EQUIPMENT (0.5%)
2,000 Continental Cablevision, Inc. 8.875%
due 09/15/05...................... 2,147,160
---------------
FINANCE (0.6%)
2,000 Terra Nova Holdings 10.75% due
07/01/05 (United Kingdom)......... 2,246,840
---------------
FINANCIAL (2.4%)
1,000 Arkwright CSN Trust - 144A** 9.625%
due 08/15/26...................... 1,028,750
2,000 Commercial Credit Co.
10.00% due 05/15/09............... 2,408,120
1,200 General Motors Acceptance Corp.
5.70% due 12/22/97................ 1,190,088
2,000 RHG Finance Corp.
8.875% due 10/01/05............... 2,070,380
3,000 Sun Canada Financial Co. - 144A**
6.625% due 12/15/07............... 2,808,750
---------------
9,506,088
---------------
FINANCIAL SERVICES (1.1%)
2,000 Conseco, Inc.
10.50% due 12/15/04............... 2,287,060
2,000 Lumbermens Mutual Casualty - 144A**
9.15% due 07/01/26................ 2,072,500
---------------
4,359,560
---------------
FOREIGN GOVERNMENT AGENCY (1.0%)
2,000 Finland (Republic of)
5.875% due 02/27/06............... 1,830,000
2,000 Quebec Province 8.625% due 12/01/26
(Canada).......................... 2,162,960
---------------
3,992,960
---------------
HOSPITAL MANAGEMENT (0.5%)
2,000 Columbia/HCA Healthcare Corp. 7.50%
due 11/15/95...................... 1,900,000
---------------
INDUSTRIALS (2.8%)
2,000 Harcourt General, Inc.
8.875% due 06/01/22............... 2,177,740
2,000 News America Holdings, Inc. 7.90%
due 12/01/95...................... 1,802,500
2,000 Pennzoil Co.
10.125% due 11/15/09.............. 2,359,580
1,950 Philips Electronics NV 7.20% due
06/01/26 (Netherlands)............ 1,933,737
2,000 Reliance Industries PLC
9.375% due 06/24/26 (India)....... 2,045,000
1,000 Tosco Corp. 7.625% due 05/15/06..... 1,000,320
---------------
11,318,877
---------------
TELECOMMUNICATIONS (0.5%)
2,000 Tele-Communications, Inc.
9.80% due 02/01/12................ 2,154,800
---------------
UTILITIES - ELECTRIC (0.5%)
2,000 Niagara Mohawk Power Corp. 9.25% due
10/01/01.......................... 1,974,660
---------------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $51,560,267)................. 51,336,251
---------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (12.7%)
$ 3,000 U.S. Treasury Bond
7.625% due 02/15/25............... $ 3,232,031
1,500 U.S. Treasury Bond
6.875% due 08/15/25............... 1,485,234
3,000 U.S. Treasury Note
5.75% due 09/30/97................ 2,993,438
2,000 U.S. Treasury Note
6.375% due 05/15/99............... 2,004,375
2,000 U.S. Treasury Note
6.875% due 08/31/99............... 2,028,438
12,000 U.S. Treasury Note
7.75% due 12/31/99................ 12,504,375
7,000 U.S. Treasury Note
6.875% due 03/31/00............... 7,103,906
11,000 U.S. Treasury Note
5.625% due 11/30/00............... 10,652,812
2,000 U.S. Treasury Note
6.375% due 08/15/02............... 1,984,063
6,000 U.S. Treasury Note
5.75% due 08/15/03................ 5,708,437
1,000 U.S. Treasury Note
7.25% due 05/15/04................ 1,035,625
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $52,720,933)..... 50,732,734
---------------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (6.4%)
U.S. GOVERNMENT AGENCIES
$ 12,000 Federal Home Loan Banks
5.26% due 07/08/96................ $ 11,987,727
13,600 Federal Home Loan Mortgage Corp.
5.24% - 5.52% due 07/01/96 -
07/03/96.......................... 13,597,671
---------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $25,585,398)...... 25,585,398
---------------
TOTAL INVESTMENTS (IDENTIFIED
COST $370,579,102) (B)......... 99.3% 395,365,721
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES................. 0.7 2,841,940
---------- -------------
NET ASSETS....................... 100.0% $ 398,207,661
---------- -------------
---------- -------------
<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. THE AGGREGATE GROSS UNREALIZED APPRECIATION WAS $33,852,765 AND THE
AGGREGATE GROSS UNREALIZED DEPRECIATION WAS $9,066,146, RESULTING IN NET
UNREALIZED APPRECIATION OF $24,786,619.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
value *..................... $286,283,720 $459,767,262 $202,415,882 $461,325,238
Cash.......................... 6,962 -- 20,783 --
Receivable for:
Investments sold............ -- 35,129,689 -- 2,649,580
Shares of beneficial
interest sold............. 448,552 575 317,894 20,582
Dividends................... -- -- -- 1,422,620
Interest.................... 446,928 6,723,835 4,256,990 741,318
Foreign withholding taxes
reclaimed................. -- -- -- --
Prepaid expenses and other
assets...................... 1,625 2,984 2,200 4,310
------------ ------------ ------------ ------------
TOTAL ASSETS.......... 287,187,787 501,624,345 207,013,749 466,163,648
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Investments purchased....... -- 31,152,285 5,285,757 1,045,717
Shares of beneficial
interest repurchased...... 876,381 77,933 581,731 182,072
Investment management fee... 109,555 190,645 80,273 242,409
Accrued expenses and other
payables.................... 47,453 103,794 50,081 53,401
Commitments (Note 6).......... -- -- -- --
------------ ------------ ------------ ------------
TOTAL LIABILITIES..... 1,033,389 31,524,657 5,997,842 1,523,599
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in-capital............... 286,154,132 496,698,982 293,619,800 390,108,701
Accumulated undistributed net
investment income
(distributions in excess of
net investment income)...... 266 178,873 128,973 28,186
Accumulated undistributed net
realized gain (accumulated
net realized loss).......... -- (30,707,683) (76,898,603) 366,212
Net unrealized appreciation
(depreciation).............. -- 3,929,516 (15,834,263) 74,136,950
------------ ------------ ------------ ------------
NET ASSETS............ $286,154,398 $470,099,688 $201,015,907 $464,640,049
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*IDENTIFIED COST.............. $286,283,720 $455,837,746 $218,250,145 $387,188,288
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................. 286,154,132 46,171,051 32,093,616 30,968,699
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSET VALUE PER
SHARE (unlimited authorized
shares of $.01 par value)... $1.00 $10.18 $6.26 $15.00
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
- ------------------
** Includes foreign cash of $1,401,554 and $933,883,
respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND EUROPEAN PACIFIC
GROWTH GROWTH GROWTH GROWTH GROWTH
------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
value *..................... $1,050,173,506 $80,281,631 $271,575,052 $231,709,297 $152,842,428
Cash.......................... 18,198 -- 1,852,731 4,154,916** 1,711,117**
Receivable for:
Investments sold............ 2,986,475 1,057,899 721,280 1,261,694 929,566
Shares of beneficial
interest sold............. 1,064,865 64,632 354,247 195,133 156,167
Dividends................... 1,712,764 45,185 887,732 311,046 231,378
Interest.................... 880,850 -- 10,547 6,225 33,579
Foreign withholding taxes
reclaimed................. -- -- 352,290 371,517 --
Prepaid expenses and other
assets...................... 2,229 1,150 1,311 1,698 13,664
------------ ----------- ------------ ------------ ------------
TOTAL ASSETS.......... 1,056,838,887 81,450,497 275,755,190 238,011,526 155,917,899
------------ ----------- ------------ ------------ ------------
LIABILITIES:
Payable for:
Investments purchased....... 6,508,863 535,980 2,942,150 3,580,749 3,182,041
Shares of beneficial
interest repurchased...... 484 25,449 247 9,922 --
Investment management fee... 477,639 42,638 164,534 188,274 123,524
Accrued expenses and other
payables.................... 67,576 31,406 70,332 43,055 91,411
Commitments (Note 6).......... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
TOTAL LIABILITIES..... 7,054,562 635,473 3,177,263 3,822,000 3,396,976
------------ ----------- ------------ ------------ ------------
NET ASSETS:
Paid-in-capital............... 775,069,002 59,924,896 230,684,738 164,152,804 145,167,907
Accumulated undistributed net
investment income
(distributions in excess of
net investment income)...... (17,356) 326,563 (11,773) 1,532,424 2,411,337
Accumulated undistributed net
realized gain (accumulated
net realized loss).......... 71,060,428 5,679,284 12,955,669 22,273,171 (3,949,780)
Net unrealized appreciation
(depreciation).............. 203,672,251 14,884,281 28,949,293 46,231,127 8,891,459
------------ ----------- ------------ ------------ ------------
NET ASSETS............ $1,049,784,325 $80,815,024 $272,577,927 $234,189,526 $152,520,923
------------ ----------- ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------
*IDENTIFIED COST.............. $846,501,255 $65,397,350 $242,632,323 $185,460,443 $143,948,878
------------ ----------- ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................. 61,834,560 4,884,676 21,791,981 11,768,699 14,697,839
------------ ----------- ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------
NET ASSET VALUE PER
SHARE (unlimited authorized
shares of $.01 par value)... $16.98 $16.54 $12.51 $19.90 $10.38
------------ ----------- ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------
<CAPTION>
EQUITY STRATEGIST
----------- -----------
<S> <C> <C>
ASSETS:
Investments in securities, at
value *..................... $463,710,607 $395,365,721
Cash.......................... -- 13,956
Receivable for:
Investments sold............ 10,681,292 --
Shares of beneficial
interest sold............. 615,005 1,011,553
Dividends................... 189,373 196,630
Interest.................... 255,110 1,839,245
Foreign withholding taxes
reclaimed................. -- --
Prepaid expenses and other
assets...................... 2,989 3,006
----------- -----------
TOTAL ASSETS.......... 475,454,376 398,430,111
----------- -----------
LIABILITIES:
Payable for:
Investments purchased....... 17,840,520 --
Shares of beneficial
interest repurchased...... -- 1,337
Investment management fee... 186,360 162,896
Accrued expenses and other
payables.................... 52,772 58,217
Commitments (Note 6).......... -- --
----------- -----------
TOTAL LIABILITIES..... 18,079,652 222,450
----------- -----------
NET ASSETS:
Paid-in-capital............... 335,166,977 368,261,009
Accumulated undistributed net
investment income
(distributions in excess of
net investment income)...... 162 45,711
Accumulated undistributed net
realized gain (accumulated
net realized loss).......... 85,745,089 5,114,322
Net unrealized appreciation
(depreciation).............. 36,462,496 24,786,619
----------- -----------
NET ASSETS............ $457,374,724 $398,207,661
----------- -----------
----------- -----------
*IDENTIFIED COST.............. $427,248,111 $370,579,102
----------- -----------
----------- -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................. 15,597,874 30,719,360
----------- -----------
----------- -----------
NET ASSET VALUE PER
SHARE (unlimited authorized
shares of $.01 par value)... $29.32 $12.96
----------- -----------
----------- -----------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUALITY
MONEY MARKET INCOME PLUS HIGH YIELD UTILITIES
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest.................. $ 7,330,278 $ 17,835,547 $ 11,426,035 $ 2,182,674
Dividends................. -- -- -- 7,993,139**
------------- ------------- ------------- -------------
TOTAL INCOME.......... 7,330,278 17,835,547 11,426,035 10,175,813
------------- ------------- ------------- -------------
EXPENSES
Investment management
fee..................... 671,944 1,220,354 437,887 1,525,455
Transfer agent fees and
expenses................ 750 750 750 750
Shareholder reports and
notices................. 5,320 15,010 1,622 11,180
Professional fees......... 15,062 20,771 237 14,423
Trustees' fees and
expenses................ 724 2,402 377 1,152
Custodian fees............ 11,446 61,078 9,078 15,281
Other..................... 9,186 11,807 -- 3,927
------------- ------------- ------------- -------------
TOTAL EXPENSES........ 714,432 1,332,172 449,951 1,572,168
------------- ------------- ------------- -------------
NET INVESTMENT
INCOME.......... 6,615,846 16,503,375 10,976,084 8,603,645
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on:
Investments............. -- (5,856,072) (2,785,453) (780,369)
Foreign exchange
transactions.......... -- -- -- --
------------- ------------- ------------- -------------
TOTAL GAIN (LOSS)..... -- (5,856,072) (2,785,453) (780,369)
------------- ------------- ------------- -------------
Net change in unrealized
appreciation/depreciation
on:
Investments (Note 3).... -- (30,650,839) 2,787,811 10,444,595
Translation of forward
foreign currency
contracts, other
assets and liabilities
denominated in foreign
currencies............ -- -- -- --
------------- ------------- ------------- -------------
TOTAL APPRECIATION
(DEPRECIATION)...... -- (30,650,839) 2,787,811 10,444,595
------------- ------------- ------------- -------------
NET GAIN (LOSS)....... -- (36,506,911) 2,358 9,664,226
------------- ------------- ------------- -------------
NET INCREASE
(DECREASE)...... $ 6,615,846 $ (20,003,536) $ 10,978,442 $ 18,267,871
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<FN>
- ------------------
* Net of $1,762 foreign witholding tax.
** Net of $80,929, $65,442, $564, $413,121, $424,845,
$136,931 and $6,022 foreign witholding tax,
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>
INVESTMENT INCOME:
INCOME
Interest.................. $ 1,393,760 $ 55,595 $ 100,770 $ 270,111 $ 215,832* $ 846,442 $3,875,977
Dividends................. 13,465,159** 399,917** 3,802,410** 2,563,996** 1,470,699** 1,507,192** 2,955,307
------------ --------- ------------ ------------- ------------- --------- ---------
TOTAL INCOME.......... 14,858,919 455,512 3,903,180 2,834,107 1,686,531 2,353,634 6,831,284
------------ --------- ------------ ------------- ------------- --------- ---------
EXPENSES
Investment management
fee..................... 2,723,506 239,087 885,363 1,033,606 663,551 1,007,084 977,563
Transfer agent fees and
expenses................ 750 750 750 750 750 750 750
Shareholder reports and
notices................. 15,794 940 3,351 4,098 4,246 9,635 4,096
Professional fees......... 14,818 12,612 16,212 18,677 20,125 11,782 14,088
Trustees' fees and
expenses................ 2,398 218 923 587 668 1,358 2,457
Custodian fees............ 26,983 7,273 88,686 29,823 143,006 67,950 27,516
Other..................... 6,731 49 4,716 3,425 6,305 216 4,026
------------ --------- ------------ ------------- ------------- --------- ---------
TOTAL EXPENSES........ 2,790,980 260,929 1,000,001 1,090,966 838,651 1,098,775 1,030,496
------------ --------- ------------ ------------- ------------- --------- ---------
NET INVESTMENT
INCOME.......... 12,067,939 194,583 2,903,179 1,743,141 847,880 1,254,859 5,800,788
------------ --------- ------------ ------------- ------------- --------- ---------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on:
Investments............. 47,469,626 4,979,853 6,942,451 10,255,451 840,690 31,141,960 1,571,948
Foreign exchange
transactions.......... -- -- (23,286) 673,828 (7,624) -- --
------------ --------- ------------ ------------- ------------- --------- ---------
TOTAL GAIN (LOSS)..... 47,469,626 4,979,853 6,919,165 10,929,279 833,066 31,141,960 1,571,948
------------ --------- ------------ ------------- ------------- --------- ---------
Net change in unrealized
appreciation/depreciation
on:
Investments (Note 3).... 31,225,445 674,947 8,654,123 13,658,062 5,235,939 (642,072) 14,376,253
Translation of forward
foreign currency
contracts, other
assets and liabilities
denominated in foreign
currencies............ -- -- 6,813 (133,592) (832) -- --
------------ --------- ------------ ------------- ------------- --------- ---------
TOTAL APPRECIATION
(DEPRECIATION)...... 31,225,445 674,947 8,660,936 13,524,470 5,235,107 (642,072) 14,376,253
------------ --------- ------------ ------------- ------------- --------- ---------
NET GAIN (LOSS)....... 78,695,071 5,654,800 15,580,101 24,453,749 6,068,173 30,499,888 15,948,201
------------ --------- ------------ ------------- ------------- --------- ---------
NET INCREASE
(DECREASE)...... $ 90,763,010 $5,849,383 $ 18,483,280 $ 26,196,890 $ 6,916,053 $31,754,747 $21,748,989
------------ --------- ------------ ------------- ------------- --------- ---------
------------ --------- ------------ ------------- ------------- --------- ---------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY MARKET QUALITY INCOME PLUS
--------------------------- ---------------------------
1996 1995 1996 1995
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income..... $ 6,615,846 $ 13,741,500 $ 16,503,375 $ 32,845,926
Net realized gain
(loss).................. -- -- (5,856,072) 14,651,610
Net change in unrealized
appreciation/depreciation.. -- -- (30,650,839) 53,023,332
------------- ------------ ------------- ------------
Net increase
(decrease).......... 6,615,846 13,741,500 (20,003,536) 100,520,868
------------- ------------ ------------- ------------
Dividends and distributions
from:
Net investment income..... (6,615,602) (13,741,498) (16,932,668) (32,322,904)
Net realized gain......... -- -- -- --
In excess of net
investment income....... -- -- -- --
------------- ------------ ------------- ------------
Total................. (6,615,602) (13,741,498) (16,932,668) (32,322,904)
------------- ------------ ------------- ------------
Transactions in shares of
beneficial interest:
Net proceeds from sales... 102,208,271 96,881,194 11,226,263 36,146,570
Reinvestment of dividends
and distributions....... 6,615,602 13,741,498 16,932,668 32,322,904
Cost of shares
repurchased............. (72,456,305) (129,460,561) (41,701,594) (30,993,795)
------------- ------------ ------------- ------------
Net increase
(decrease).......... 36,367,568 (18,837,869) (13,542,663) 37,475,679
------------- ------------ ------------- ------------
Total increase
(decrease).......... 36,367,812 (18,837,867) (50,478,867) 105,673,643
NET ASSETS:
Beginning of period......... 249,786,586 268,624,453 520,578,555 414,904,912
------------- ------------ ------------- ------------
END OF PERIOD............... $ 286,154,398 $249,786,586 $ 470,099,688 $520,578,555
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
Undistributed Net Investment
Income
(Distributions In Excess of
Net Investment Income)...... $ 266 $ 22 $ 178,873 $ 608,166
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
SHARES ISSUED AND REPURCHASED:
Sold........................ 102,208,271 96,881,194 1,058,957 3,515,633
Issued in reinvestment of
dividends and
distributions............. 6,615,602 13,741,498 1,632,299 3,154,028
Repurchased................. (72,456,305) (129,460,561) (4,032,954) (3,077,582)
------------- ------------ ------------- ------------
Net increase (decrease)..... 36,367,568 (18,837,869) (1,341,698) 3,592,079
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD UTILITIES DIVIDEND GROWTH
--------------------------- --------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------- ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income..... $ 10,976,084 $ 17,067,326 $ 8,603,645 $ 16,939,135 $ 12,067,939 $ 19,552,389
Net realized gain
(loss).................. (2,785,453) (1,098,358) (780,369) 3,776,681 47,469,626 25,514,561
Net change in unrealized
appreciation/depreciation.. 2,787,811 2,521,011 10,444,595 86,839,183 31,225,445 170,908,947
------------- ------------ ------------- ------------ ------------ ------------
Net increase
(decrease).......... 10,978,442 18,489,979 18,267,871 107,554,999 90,763,010 215,975,897
------------- ------------ ------------- ------------ ------------ ------------
Dividends and distributions
from:
Net investment income..... (11,341,501) (16,648,733) (8,580,880) (18,544,715) (12,102,509) (20,821,765)
Net realized gain......... -- -- -- -- -- (12,652,636)
In excess of net
investment income....... -- -- -- -- -- --
------------- ------------ ------------- ------------ ------------ ------------
Total................. (11,341,501) (16,648,733) (8,580,880) (18,544,715) (12,102,509) (33,474,401)
------------- ------------ ------------- ------------ ------------ ------------
Transactions in shares of
beneficial interest:
Net proceeds from sales... 46,036,537 36,566,043 8,023,394 25,533,783 104,184,809 101,006,743
Reinvestment of dividends
and distributions....... 11,341,501 16,648,733 8,580,880 18,544,715 12,102,509 33,474,401
Cost of shares
repurchased............. (10,308,657) (12,680,679) (40,721,361) (36,430,389) (10,580,320) (24,518,137)
------------- ------------ ------------- ------------ ------------ ------------
Net increase
(decrease).......... 47,069,381 40,534,097 (24,117,087) 7,648,109 105,706,998 109,963,007
------------- ------------ ------------- ------------ ------------ ------------
Total increase
(decrease).......... 46,706,322 42,375,343 (14,430,096) 96,658,393 184,367,499 292,464,503
NET ASSETS:
Beginning of period......... 154,309,585 111,934,242 479,070,145 382,411,752 865,416,826 572,952,323
------------- ------------ ------------- ------------ ------------ ------------
END OF PERIOD............... $ 201,015,907 $154,309,585 $ 464,640,049 $479,070,145 $1,049,784,325 $865,416,826
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
Undistributed Net Investment
Income
(Distributions In Excess of
Net Investment Income)...... $ 128,973 $ 494,390 $ 28,186 $ 5,421 $ (17,356) $ 17,214
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
SHARES ISSUED AND REPURCHASED:
Sold........................ 7,292,628 5,834,627 540,923 1,947,513 6,248,221 7,140,373
Issued in reinvestment of
dividends and
distributions............. 1,806,051 2,658,293 577,515 1,407,989 717,828 2,413,931
Repurchased................. (1,636,715) (2,029,027) (2,773,498) (2,821,228) (636,942) (1,815,800)
------------- ------------ ------------- ------------ ------------ ------------
Net increase (decrease)..... 7,461,964 6,463,893 (1,655,060) 534,274 6,329,107 7,738,504
------------- ------------ ------------- ------------ ------------ ------------
------------- ------------ ------------- ------------ ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 1995
<TABLE>
<CAPTION>
CAPITAL GROWTH GLOBAL DIVIDEND GROWTH
---------------------- ---------------------------
1996 1995 1996 1995
----------- --------- ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income..... $ 194,583 3$87,427 $ 2,903,179 $ 3,729,139
Net realized gain
(loss).................. 4,979,853 2,153,798 6,919,165 6,300,237
Net change in unrealized
appreciation/depreciation... 674,947 13,237,372 8,660,936 23,341,679
----------- --------- ------------- ------------
Net increase
(decrease).......... 5,849,383 15,778,597 18,483,280 33,371,055
----------- --------- ------------- ------------
Dividends and distributions
from:
Net investment income..... -- (310,895) (2,988,637) (4,044,117)
Net realized gain......... -- -- -- (222,586)
In excess of net
investment income....... -- -- -- --
----------- --------- ------------- ------------
Total................. -- (310,895) (2,988,637) (4,266,703)
----------- --------- ------------- ------------
Transactions in shares of
beneficial interest:
Net proceeds from sales... 12,629,086 14,176,359 50,302,526 41,054,512
Reinvestment of dividends
and distributions....... -- 310,895 2,988,637 4,266,703
Cost of shares
repurchased............. (4,658,615) (8,675,047) (1,946,403) (7,173,082)
----------- --------- ------------- ------------
Net increase
(decrease).......... 7,970,471 5,812,207 51,344,760 38,148,133
----------- --------- ------------- ------------
Total increase
(decrease).......... 13,819,854 21,279,909 66,839,403 67,252,485
NET ASSETS:
Beginning of period......... 66,995,170 45,715,261 205,738,524 138,486,039
----------- --------- ------------- ------------
END OF PERIOD............... $80,815,024 66,$995,170 $ 272,577,927 $205,738,524
----------- --------- ------------- ------------
----------- --------- ------------- ------------
Undistributed Net Investment
Income
(Distributions In Excess of
Net Investment Income)...... $ 326,563 1$31,980 $ (11,773) $ 73,685
----------- --------- ------------- ------------
----------- --------- ------------- ------------
SHARES ISSUED AND REPURCHASED:
Sold........................ 777,971 1,056,301 4,107,601 3,795,718
Issued in reinvestment of
dividends and
distributions............. -- 24,762 240,807 397,706
Repurchased................. (293,891) (649,418) (161,021) (688,539)
----------- --------- ------------- ------------
Net increase (decrease)..... 484,080 431,645 4,187,387 3,504,885
----------- --------- ------------- ------------
----------- --------- ------------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EUROPEAN GROWTH PACIFIC GROWTH EQUITY STRATEGIST
--------------------------- --------------------------- --------------------- ----------
1996 1995 1996 1995 1996 1995 1996
------------- ------------ ------------- ------------ ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income..... $ 1,743,141 $ 2,114,492 $ 847,880 $ 1,021,997 $1,254,859 $2,708,609 $5,800,788
Net realized gain
(loss).................. 10,929,279 10,996,721 833,066 (2,760,376) 31,141,960 66,181,855 1,571,948
Net change in unrealized
appreciation/depreciation... 13,524,470 24,638,745 5,235,107 6,493,134 (642,072) 28,684,738 14,376,253
------------- ------------ ------------- ------------ ---------- -------- ----------
Net increase
(decrease).......... 26,196,890 37,749,958 6,916,053 4,754,755 31,754,747 97,575,202 21,748,989
------------- ------------ ------------- ------------ ---------- -------- ----------
Dividends and distributions
from:
Net investment income..... -- (1,774,678) -- (719,960) (1,276,440) (3,058,144) (5,802,390)
Net realized gain......... -- (5,391,962) -- (15,252) -- -- --
In excess of net
investment income....... -- (210,717) -- -- -- -- --
------------- ------------ ------------- ------------ ---------- -------- ----------
Total................. -- (7,377,357) -- (735,212) (1,276,440) (3,058,144) (5,802,390)
------------- ------------ ------------- ------------ ---------- -------- ----------
Transactions in shares of
beneficial interest:
Net proceeds from sales... 26,418,248 18,351,213 52,647,664 33,260,368 74,060,386 60,875,983 12,384,984
Reinvestment of dividends
and distributions....... -- 7,377,357 -- 735,212 1,276,440 3,058,144 5,802,390
Cost of shares
repurchased............. (6,545,021) (20,019,201) (5,373,089) (15,110,167) (8,219,779) (23,961,072) (24,505,481)
------------- ------------ ------------- ------------ ---------- -------- ----------
Net increase
(decrease).......... 19,873,227 5,709,369 47,274,575 18,885,413 67,117,047 39,973,055 (6,318,107)
------------- ------------ ------------- ------------ ---------- -------- ----------
Total increase
(decrease).......... 46,070,117 36,081,970 54,190,628 22,904,956 97,595,354 134,490,113 9,628,492
NET ASSETS:
Beginning of period......... 188,119,409 152,037,439 98,330,295 75,425,339 359,779,370 225,289,257 388,579,169
------------- ------------ ------------- ------------ ---------- -------- ----------
END OF PERIOD............... $ 234,189,526 $188,119,409 $ 152,520,923 $ 98,330,295 $457,374,724 $359,779,370 $398,207,661
------------- ------------ ------------- ------------ ---------- -------- ----------
------------- ------------ ------------- ------------ ---------- -------- ----------
Undistributed Net Investment
Income
(Distributions In Excess of
Net Investment Income)...... $ 1,532,424 $ (210,717) $ 2,411,337 $ 1,563,457 $ 162 $ 21,743 $ 45,711
------------- ------------ ------------- ------------ ---------- -------- ----------
------------- ------------ ------------- ------------ ---------- -------- ----------
SHARES ISSUED AND REPURCHASED:
Sold........................ 1,396,230 1,106,630 5,079,449 3,543,683 2,591,282 2,501,214 959,023
Issued in reinvestment of
dividends and
distributions............. -- 454,397 -- 79,076 45,001 136,228 450,297
Repurchased................. (358,910) (1,268,442) (518,534) (1,630,781) (296,907) (1,080,135) (1,913,294)
------------- ------------ ------------- ------------ ---------- -------- ----------
Net increase (decrease)..... 1,037,320 292,585 4,560,915 1,991,978 2,339,376 1,557,307 (503,974)
------------- ------------ ------------- ------------ ---------- -------- ----------
------------- ------------ ------------- ------------ ---------- -------- ----------
<CAPTION>
1995
--------
<S> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income..... $19,633,402
Net realized gain
(loss).................. 4,287,366
Net change in unrealized
appreciation/depreciation... 10,997,160
--------
Net increase
(decrease).......... 34,917,928
--------
Dividends and distributions
from:
Net investment income..... (21,267,198)
Net realized gain......... (13,902,986)
In excess of net
investment income....... --
--------
Total................. (35,170,184)
--------
Transactions in shares of
beneficial interest:
Net proceeds from sales... 24,116,300
Reinvestment of dividends
and distributions....... 35,170,184
Cost of shares
repurchased............. (63,215,404)
--------
Net increase
(decrease).......... (3,928,920)
--------
Total increase
(decrease).......... (4,181,176)
NET ASSETS:
Beginning of period......... 392,760,345
--------
END OF PERIOD............... $388,579,169
--------
--------
Undistributed Net Investment
Income
(Distributions In Excess of
Net Investment Income)...... $ 47,313
--------
--------
SHARES ISSUED AND REPURCHASED:
Sold........................ 1,957,299
Issued in reinvestment of
dividends and
distributions............. 2,891,755
Repurchased................. (5,160,690)
--------
Net increase (decrease)..... (311,636)
--------
--------
</TABLE>
<PAGE>
Dean Witter Variable Investment Series
Notes to Financial Statements JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Variable Investment Series
(the "Fund") is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. All shares of the 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 Growth Seeks to provide reasonable current income and
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 JUNE 30, 1996 (UNAUDITED) (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 is valued at its latest sale price on
that exchange prior to the time when assets are valued; if there were no
sales that day, the security is valued at the latest bid price (in cases
where 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 JUNE 30, 1996 (UNAUDITED) (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 JUNE 30, 1996 (UNAUDITED) (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 the Investment Manager 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 and Strategist - 0.50%; 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 million. Effective May 1, 1996, Dividend Growth and Equity calculate the
management fee at the following rates: Dividend Growth - 0.625% to the portion
of daily net assets not exceeding $500 million; 0.50% to the portion of daily
net assets exceeding $500 million but not exceeding $1 billion; and 0.475% to
the portion of daily net assets exceeding $1 billion; and Equity - 0.50% to the
portion of daily net assets not exceeding $1 billion and 0.475% to the portion
of daily net assets exceeding $1 billion.
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
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
Under a Sub-Advisory Agreement between Morgan Grenfell Investment Services
Limited (the "Sub-Advisor") and the Investment Manager, the Sub-Advisor provides
the European Growth and the Pacific Growth Portfolios with investment advice and
portfolio management relating to the Portfolios' investments in securities,
subject to the overall supervision of the Investment Manager. As compensation
for its services provided pursuant to the Sub-Advisory Agreement, the Investment
Manager pays the Sub-Advisor monthly compensation equal to 40% of its monthly
compensation.
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 six months ended June 30, 1996
were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
---------------------------------- ----------------------------------
PURCHASES SALES/MATURITIES PURCHASES SALES/MATURITIES
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Money Market.............................. $ 7,278,875 $ 3,348,283 $ 732,853,865 $ 700,168,262
Quality Income Plus....................... 332,980,371 331,979,501 178,483,148 197,320,140
High Yield................................ -- -- 96,481,569 51,560,641
Utilities................................. -- -- 18,018,182 35,466,950
Dividend Growth........................... 6,904,133 -- 240,247,960 140,688,494
Capital Growth............................ 276,950 -- 27,733,764 25,545,199
Global Dividend Growth.................... -- -- 99,657,169 48,419,629
European Growth........................... -- -- 83,186,790 58,252,746
Pacific Growth............................ -- -- 71,032,757 25,187,160
Equity.................................... 9,735,250 55,062,315 670,085,063 576,649,129
Strategist................................ 92,991,473 76,953,330 180,771,304 212,676,114
</TABLE>
Included in the aforementioned purchases and sales of portfolio securities
of the Equity Portfolio are purchases and sales 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 $4,893,248 and $3,424,962, respectively, realizing a gain in the
amount of $280,910.
For the six months ended June 30, 1996, 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............................ $ 26,750 $ 120,491 $ 18,800 $ 17,565 $ 118,765 $ 20,890
--------- ----------- --------- --------- ----------- ---------
--------- ----------- --------- --------- ----------- ---------
</TABLE>
For the six months ended June 30, 1996, the Pacific Growth Portfolio
incurred brokerage commissions of $13,957 with affiliates of Morgan Grenfell for
portfolio transactions executed.
Included in Global Dividend Growth's payable for investments purchased for
unsettled trades with DWR is $351,643 at June 30, 1996.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Included in the receivable for investments sold for unsettled trades with
DWR at June 30, 1996 were as follows:
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND CAPITAL DIVIDEND
GROWTH GROWTH GROWTH EQUITY
------------- --------- --------- -----------
<S> <C> <C> <C> <C>
Receivable for investments sold............................... $ 2,450,993 $ 70,948 $ 64,398 $ 675,557
------------- --------- --------- -----------
------------- --------- --------- -----------
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At June 30, 1996, each of the Portfolios had transfer
agent fees and expenses payable of $250.
The Fund has an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement. Benefits
under this plan are based on years of service and compensation during the last
five years of service. Aggregate pension costs for the six months ended June 30,
1996 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............................. $ 44 $ 79 $ 30 $ 78 $ 164 $ 12
--------- --------- --------- --------- ----------- -----
--------- --------- --------- --------- ----------- -----
Accrued Pension Liability.......................... $ 11,269 $ 8,315 $ 3,388 $ 4,880 $ 7,598 $ 321
--------- --------- --------- --------- ----------- -----
--------- --------- --------- --------- ----------- -----
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
DIVIDEND EUROPEAN PACIFIC
GROWTH GROWTH GROWTH EQUITY STRATEGIST
----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
Aggregate Pension Cost....................................... $ 567 $ 35 $ 304 $ 70 $ 65
----- ----- ----- --------- -----------
----- ----- ----- --------- -----------
Accrued Pension Liability.................................... $ 481 $ 743 $ 867 $ 6,279 $ 9,681
----- ----- ----- --------- -----------
----- ----- ----- --------- -----------
</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:
<TABLE>
<CAPTION>
QUALITY INCOME
PLUS UTILITIES CAPITAL GROWTH EQUITY
- ------------------ ------------- -------------- -------------
<S> <C> <C> <C>
$ 9,908,000 $ 2,371,000 $ 1,105,000 $ 6,496,000
- ------------------ ------------- -------------- -------------
- ------------------ ------------- -------------- -------------
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
GLOBAL DIVIDEND GROWTH EUROPEAN GROWTH PACIFIC GROWTH
- ---------------------- ---------------- --------------
<S> <C> <C>
$ 5,000 $ 633,000 $ 2,310,000
------- ---------------- --------------
------- ---------------- --------------
</TABLE>
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.
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 June 30, 1996, there were outstanding forward contracts used to
facilitate settlement of foreign currency denominated portfolio transactions and
to manage foreign currency exposure.
Forward contracts and over-the-counter purchased put options on foreign
currencies 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 and
over-the-counter purchased put options on foreign currencies from the potential
inability of the counterparties to meet the terms of their contracts.
At June 30, 1996, 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
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. COMMITMENTS--As of June 30, 1996, the Pacific Growth Portfolio had an
outstanding commitment of $70,000 resulting from the purchase of partially paid
units of Peregrine Indonesia. The balance is payable on January 1, 1997.
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED RATIOS AND PER SHARE DATA FOR A COMMON SHARE OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
NET ASSET
VALUE NET NET REALIZED TOTAL FROM
BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO DISTRIBUTIONS TO
YEAR ENDED DEC. 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS
---------- --------- ---------- -------------- ---------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET
1991 $ 1.00 $0.056 $-- $ 0.056 $(0.056) $--
1992 1.00 0.034 -- 0.034 (0.034) --
1993 1.00 0.027 -- 0.027 (0.027) --
1994 1.00 0.037 -- 0.037 (0.037) --
1995 1.00 0.055 -- 0.055 (0.055) --
1996(a) 1.00 0.024 -- 0.024 (0.024) --
QUALITY INCOME PLUS
1991 9.49 0.85 0.85 1.70 (0.85) --
1992 10.34 0.77 0.05 0.82 (0.77) --
1993 10.39 0.69 0.64 1.33 (0.69) --
1994 11.03 0.69 (1.40) (0.71) (0.69) (0.18)
1995 9.45 0.72 1.50 2.22 (0.71) --
1996(a) 10.96 0.35 (0.77) (0.42) (0.36) --
HIGH YIELD
1991 4.55 0.70 1.81 2.51 (0.70) (0.11)*
1992 6.25 0.96 0.18 1.14 (0.96) --
1993 6.43 0.81 0.68 1.49 (0.81) --
1994 7.11 0.79 (0.95) (0.16) (0.79) --
1995 6.16 0.80 0.08 0.88 (0.78) --
1996(a) 6.26 0.38 0.02 0.40 (0.40) --
UTILITIES
1991 10.02 0.54 1.45 1.99 (0.54) --
1992 11.47 0.51 0.88 1.39 (0.52) --
1993 12.34 0.49 1.43 1.92 (0.50) (0.02)
1994 13.74 0.53 (1.75) (1.22) (0.52) (0.08)
1995 11.92 0.53 2.81 3.34 (0.58) --
1996(a) 14.68 0.27 0.32 0.59 (0.27) --
DIVIDEND GROWTH
1991 8.93 0.36 2.08 2.44 (0.37) --
1992 11.00 0.37 0.51 0.88 (0.37) --
1993 11.51 0.36 1.27 1.63 (0.36) --
1994 12.78 0.38 (0.80) (0.42) (0.37) --
1995 11.99 0.38 3.89 4.27 (0.41) (0.26)
1996(a) 15.59 0.20 1.39 1.59 (0.20) --
</TABLE>
- ------------
(a) For the six months ended June 30, 1996 (unaudited).
+ Calculated based on the net asset value as of the last business day of
the period.
* Distribution from capital.
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
---------------------
TOTAL DIVIDENDS NET ASSET TOTAL NET ASSETS AT NET PORTFOLIO AVERAGE
AND VALUE END INVESTMENT END OF PERIOD INVESTMENT TURNOVER COMMISSION
DISTRIBUTIONS OF PERIOD RETURN+ (000'S) EXPENSES INCOME RATE RATE PAID
- ---------------- ----------- -------------- -------------- ---------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.056) $1.00 5.75% $ 104,277 0.57% 5.62% N/A N/A
(0.034) 1.00 3.43 96,151 0.59 3.38 N/A N/A
(0.027) 1.00 2.75 129,925 0.57 2.71 N/A N/A
(0.037) 1.00 3.81 268,624 0.55 3.93 N/A N/A
(0.055) 1.00 5.66 249,787 0.53 5.52 N/A N/A
(0.024) 1.00 2.48(1) 286,154 0.53(2) 4.92(2) N/A N/A
(0.85) 10.34 18.75 81,918 0.60 8.39 105% N/A
(0.77) 10.39 8.26 163,368 0.58 7.41 148 N/A
(0.69) 11.03 12.99 487,647 0.56 6.17 219 N/A
(0.87) 9.45 (6.63) 414,905 0.54 6.88 254 N/A
(0.71) 10.96 24.30 520,579 0.54 7.07 162 N/A
(0.36) 10.18 (3.75)(1) 470,100 0.55(2) 6.75(2) 105(1) N/A
(0.81) 6.25 58.14 34,603 1.01 12.29 300 N/A
(0.96) 6.43 18.35 40,042 0.74 14.05 204 N/A
(0.81) 7.11 24.08 90,200 0.60 11.80 177 N/A
(0.79) 6.16 (2.47) 111,934 0.59 11.71 105 N/A
(0.78) 6.26 14.93 154,310 0.54 12.67 58 N/A
(0.40) 6.26 6.54(1) 201,016 0.51(2) 12.50(2) 31(1) N/A
(0.54) 11.47 20.56 68,449 0.80 5.23 25 --
(0.52) 12.34 12.64 153,748 0.73 4.63 26 --
(0.52) 13.74 15.69 490,934 0.71 3.75 11 --
(0.60) 11.92 (9.02) 382,412 0.68 4.21 15 --
(0.58) 14.68 28.65 479,070 0.68 4.00 13 --
(0.27) 15.00 4.07(1) 464,640 0.67(2) 3.67(2) 4(1) $ 0.0539
(0.37) 11.00 27.76 98,023 0.73 3.61 6 --
(0.37) 11.51 8.16 192,551 0.69 3.42 4 --
(0.36) 12.78 14.34 483,145 0.68 3.01 6 --
(0.37) 11.99 (3.27) 572,952 0.64 3.13 20 --
(0.67) 15.59 36.38 865,417 0.61 2.75 24 --
(0.20) 16.98 10.23(1) 1,049,784 0.58(2) 2.50(2) 15(1) 0.0546
</TABLE>
<PAGE>
DEAN WITTER VARIABLE INVESTMENT SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
SELECTED RATIOS AND PER SHARE DATA FOR A COMMON SHARE OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
NET ASSET
VALUE NET NET REALIZED TOTAL FROM
BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO DISTRIBUTIONS TO
YEAR ENDED DEC. 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS
---------- --------- ---------- -------------- ---------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
1991(b) $10.00 $ 0.15 $ 2.67 $ 2.82 $ (0.13) $--
1992 12.69 0.07 0.13 0.20 (0.08) (0.02)
1993 12.79 0.08 (0.98) (0.90) (0.08) --
1994 11.81 0.10 (0.26) (0.16) (0.10) (0.03)
1995 11.52 0.10 3.68 3.78 (0.08) --
1996(a) 15.22 0.04 1.28 1.32 -- --
GLOBAL DIVIDEND GROWTH
1994(c) 10.00 0.23 (0.20) 0.03 (0.21) --
1995 9.82 0.24 1.90 2.14 (0.26) (0.01)
1996(a) 11.69 0.14 0.82 0.96 (0.14) --
EUROPEAN GROWTH
1991(b) 10.00 0.25 (0.13) 0.12 (0.23) --
1992 9.89 0.08 0.32 0.40 (0.10) (0.01)
1993 10.18 0.12 3.98 4.10 (0.12) (0.13)
1994 14.03 0.17 0.96 1.13 (0.16) (0.44)
1995 14.56 0.20 3.50 3.70 (0.19)** (0.54)
1996(a) 17.53 0.12 2.25 2.37 -- --
PACIFIC GROWTH
1994(c) 10.00 0.07 (0.74) (0.67) -- (0.07)
1995 9.26 0.12 0.41 0.53 (0.09) --
1996(a) 9.70 0.15 0.53 0.68 -- --
EQUITY
1991 14.10 0.20 8.05 8.25 (0.21) --
1992 22.14 0.23 (0.47) (0.24) (0.24) (1.86)
1993 19.80 0.15 3.63 3.78 (0.15) (1.28)
1994 22.15 0.23 (1.31) (1.08) (0.22) (1.60)
1995 19.25 0.22 7.92 8.14 (0.25) --
1996(a) 27.14 0.09 2.18 2.27 (0.09) --
STRATEGIST
1991 9.81 0.47 2.24 2.71 (0.50) --
1992 12.02 0.44 0.41 0.85 (0.45) (0.13)
1993 12.29 0.38 0.86 1.24 (0.38) (0.47)
1994 12.68 0.48 0.01 0.49 (0.46) (0.26)
1995 12.45 0.62 0.49 1.11 (0.67) (0.44)
1996(a) 12.45 0.19 0.51 0.70 (0.19) --
</TABLE>
- ------------
(a) For the six months ended June 30, 1996 (unaudited).
Commencement of operations:
(b) March 1, 1991.
(c) February 23, 1994.
+ Calculated based on the net asset value as of the last business day of
the period.
** 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, 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.
(4) 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 August 2, 1994 for
Pacific Growth, the ratios of expenses to average net assets would have
been 0.97% for Global Dividend Growth and 1.40% for Pacific Growth.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
---------------------------
TOTAL NET ASSET TOTAL NET ASSETS AT NET PORTFOLIO AVERAGE
DIVIDENDS AND VALUE END INVESTMENT END OF PERIOD INVESTMENT TURNOVER COMMISSION
DISTRIBUTIONS OF PERIOD RETURN+ (000'S) EXPENSES INCOME RATE RATE PAID
- -------------- ----------- -------------- -------------- -------------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.13) $12.69 28.41%(1) $ 18,400 --%(2)(3) 1.82%(2) 32%(1) --
(0.10) 12.79 1.64 45,105 0.86 0.62 22 --
(0.08) 11.81 (6.99) 50,309 0.74 0.78 36 --
(0.13) 11.52 (1.28) 45,715 0.77 0.90 37 --
(0.08) 15.22 32.92 66,995 0.74 0.70 34 --
-- 16.54 8.67(1) 80,815 0.71(2) 0.53 36(1) $ 0.0555
(0.21) 9.82 0.27(1) 138,486 0.87(2)(4) 2.62(2) 20(1) --
(0.27) 11.69 22.14 205,739 0.88 2.23 55 --
(0.14) 12.51 8.25(1) 272,578 0.85(2) 2.46(2) 21(1) 0.0348
(0.23) 9.89 1.34(1) 3,653 -- (2)(3) 3.18(2) 77(1) --
(0.11) 10.18 3.99 10,686 1.73 0.74 97 --
(0.25) 14.03 40.88 79,052 1.28 0.97 77 --
(0.60) 14.56 8.36 152,037 1.16 1.51 58 --
(0.73) 17.53 25.89 188,119 1.17 1.25 69 --
-- 19.90 13.52(1) 234,190 1.05(2) 1.68(2) 29(1) 0.0449
(0.07) 9.26 (6.73)(1) 75,425 1.00(2)(4) 0.56(2) 22(1) --
(0.09) 9.70 5.74 98,330 1.44 1.23 53 --
-- 10.38 7.01(1) 152,521 1.26(2) 1.27(2) 20(1) 0.0118
(0.21) 22.14 59.05 63,524 0.64 1.09 214 --
(2.10) 19.80 0.05 77,527 0.62 1.22 286 --
(1.43) 22.15 19.72 182,828 0.58 0.69 265 --
(1.82) 19.25 (4.91) 225,289 0.57 1.19 299 --
(0.25) 27.14 42.53 359,779 0.54 0.97 269 --
(0.09) 29.32 8.41(1) 457,375 0.54(2) 0.62(2) 160(1) 0.0585
(0.50) 12.02 28.26 87,779 0.60 4.34 86 --
(0.58) 12.29 7.24 136,741 0.58 3.74 87 --
(0.85) 12.68 10.38 287,502 0.57 3.11 57 --
(0.72) 12.45 3.94 392,760 0.54 3.93 125 --
(1.11) 12.45 9.48 388,579 0.52 5.03 329 --
(0.19) 12.96 5.73(1) 398,208 0.53(2) 2.96(2) 74(1) 0.0574
</TABLE>
<PAGE>
[This page left blank intentionally.]
<PAGE>
Trustees
------------------------------------------------------
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
Officers
------------------------------------------------------
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
Thomas F. Caloia
TREASURER
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
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>
SEMIANNUAL REPORT
JUNE 30, 1996
<PAGE>
Northbrook Life Dean Witter Variable
Insurance Company Investment Series
P.O. Box 94040
Palatine, IL 60094-4046
- ----------------
Bulk Rate Mail SEMIANNUAL REPORT
US Postage [caad 214]JUNE 30, 1996
PAID
Rockville Centre
NY 11570
PERMIT NO. 150 DEAN WITTER
- ----------------
#40113A
