<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST TWO WORLD TRADE CENTER, NEW YORK, NEW
YORK 10048
LETTER TO THE SHAREHOLDERS MARCH 31, 1996
DEAR SHAREHOLDER:
The six month period ended March 31, 1996 was marked by a relatively quiet
fourth quarter of calendar 1995 and a relatively strong first quarter of
calendar 1996. As the fiscal year began in October 1995, a weakening U.S.
economy, benign inflation and robust corporate earnings combined to propel the
stock market to new heights and interest rates lower. By February, however, the
economy was showing signs of renewed vigor. Fear of a resurgence in inflation
and the belief that the Federal Reserve Board would not cut interest rates sent
the bond markets reeling and interest rates up.
Since December, convertible securities have performed well due to a strong stock
market and bucking the trend of the weak bond market. Small caps have also
performed well during the first three months of 1996, after lagging during the
second half of last year.
PERFORMANCE
Against this backdrop, Dean Witter Convertible Securities Trust posted a total
return of 7.33 percent for the six month period ended March 31, 1996, compared
to an average return of 7.26 percent for the funds in the Lipper convertible
securities fund category and a return of 11.70 percent for the broad-based
Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index). The Fund's
small-cap concentration contributed to its strong performance during the first
quarter of 1996, as small-cap issues outperformed their larger-cap counterparts.
On March 31, 1996, the Fund's net assets exceeded $209 million. The Fund paid
distributions totaling $0.36 per share during the period, including an extra
income dividend of $.119 per share paid on December 29, 1995.
In December 1995, following approval by the shareholders of TCW/DW Global
Convertible Trust, the assets of that Fund were acquired by Dean Witter
Convertible Securities Trust. In addition, a special meeting of shareholders of
Dean Witter Convertible Securities Trust was held for the purpose of amending
the Fund's Plan of Distribution under
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
LETTER TO THE SHAREHOLDERS MARCH 31, 1996, CONTINUED
Rule 12b-1 in connection with the acquisition of the assets of TCW/DW Global
Convertible Trust. The results of this vote are found elsewhere in this report.
As a result of the acquisition, the Fund's assets increased by approximately 10
percent. In addition, a number of small positions now exist in the portfolio,
with some holdings being foreign issuers. All foreign holdings are
dollar-denominated bonds and we remain very comfortable with these positions.
However, we do not expect to significantly increase our exposure to foreign
issues above the current five percent level.
INVESTMENT STRATEGY
The Fund uses a value-oriented, bottom-up approach to evaluate companies and
their investment merits. The Fund's emphasis is on companies and industries with
strong underlying fundamentals and solid long-term growth potential. We focus on
underfollowed, small- and medium-capitalization companies that issue convertible
securities which we believe offer excellent participation in a rising equity
market and downside protection in a declining market. As of March 31, 1996, the
Fund had exposure to a broad range of industries including health care (9
percent), real estate investment trusts (10 percent of assets), restaurants (4
percent) and retail (2 percent). Approximately 10 percent of the Fund's assets
were invested in common stocks in order to diversify the Fund's holdings into
industries and companies not represented in the convertible universe. In
addition, a portion of the Fund's assets were invested in high coupon securities
to help maintain a minimum income level. Among the Fund's strongest performers
during the period were Reno Air Inc., Safeguard Scientifics, Inc., Coleman
Worldwide Corp., Conseco, Inc. and WHX Corp.
In an attempt to control volatility, the Fund generally concentrates on issues
with short maturities, while diversifying its assets across a wide range of
industries. The Fund also searches for convertible securities with good
risk/reward characteristics. These characteristics include a relatively high
yield to support the convertible if the underlying stock declines and reasonable
conversion premium to ensure participation in any appreciation of the underlying
stock.
LOOKING AHEAD
We expect the U.S. economy to maintain a slow-to-moderate pace during the
remainder of 1996, and we believe that the Federal Reserve Board will continue
to make modest adjustments to monetary policy if evidence of weak economy
re-emerges. Inflation should continue to remain subdued albeit at a slightly
higher level in the year ahead. Given this scenario, we continue to believe
convertible securities currently offer good value with an attractive combination
of income and equity exposure.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
LETTER TO THE SHAREHOLDERS MARCH 31, 1996, CONTINUED
We appreciate your support of Dean Witter Convertible Securities Trust and look
forward to continuing to serve your investment needs.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
On December 19, 1995, a special meeting of the Fund's shareholders was held for
the purpose of voting on a proposal to approve an amendment to the Fund's Plan
of Distribution under Rule 12b-1. The results of the vote on the proposal were
as follows:
<TABLE>
<S> <C>
For........................................................... 6,587,995
Against....................................................... 757,312
Abstain....................................................... 1,340,345
</TABLE>
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (64.6%)
CONVERTIBLE BONDS (63.7%)
AUTO PARTS (0.1%)
$ 190 Magna International, Inc. (Canada) (WI)..... 5.00 % 10/15/02 $ 197,254
---------------
BANKING (0.2%)
340 Banco de Galicia y Buenos Aires S.A.
(Argentina)................................. 7.00 08/01/02 359,343
130 Bangkok Bank Public Co.
(Hong Kong)................................. 3.25 03/03/04 150,475
---------------
509,818
---------------
BIOTECHNOLOGY (0.8%)
1,500 Nabi Inc. - 144A**.......................... 6.50 02/01/03 1,685,625
---------------
BUILDING MATERIALS (0.1%)
220 Cemex S.A. (Mexico)......................... 4.25 11/01/97 198,825
---------------
CHEMICALS (2.6%)
125 Formosa Chem & Fibre Corp. (Taiwan)......... 1.75 07/19/01 123,750
12,500 RPM, Inc.................................... 0.00 09/30/12 5,251,881
---------------
5,375,631
---------------
COMPUTER SERVICES (0.1%)
250 Automatic Data Processing, Inc.............. 0.00 02/20/12 130,363
---------------
COMPUTER SOFTWARE (1.1%)
2,795 Softkey International Inc. - 144A**......... 5.50 11/01/00 2,234,016
---------------
CONGLOMERATES (0.9%)
1,500 Alfa S.A. de C.V. (Mexico).................. 8.00 09/15/00 1,488,750
300 Alfa S.A. de C.V. (Mexico) - 144A**......... 8.00 09/15/00 295,500
100 Renong Berhad (Malaysia) - 144A**........... 2.00 07/15/05 102,000
---------------
1,886,250
---------------
CONSTRUCTION PLANT & EQUIPMENT (0.1%)
125 Kumagai Gumi Finance (Hong Kong)............ 4.875 12/08/98 111,406
---------------
CONSUMER PRODUCTS (0.1%)
150 President Enterprises Corp. (Taiwan)........ 0.00 07/22/01 193,125
---------------
DRUGS (1.6%)
3,075 Bindley Western Industries, Inc............. 6.50 10/01/02 3,121,125
240 Elan International Finance Ltd.............. 0.00 10/16/12 169,090
---------------
3,290,215
---------------
ELECTRONICS & ELECTRICAL (1.8%)
120 Johnson Electric Holdings, Ltd. (Hong
Kong)....................................... 4.50 11/05/00 106,200
850 Recognition Equipment Inc................... 7.25 04/15/11 739,500
3,000 Richey Electronics Inc. - 144A**............ 7.00 03/01/06 2,941,860
---------------
3,787,560
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ELECTRONICS - SEMICONDUCTORS (0.1%)
$ 90 Integrated Device Technology................ 5.50 % 06/01/02 $ 72,811
185 Xilinx Inc. - 144A**........................ 5.25 11/01/02 171,047
---------------
243,858
---------------
ENTERTAINMENT & LEISURE TIME (0.1%)
170 Technology Resources Industries Berhad
(Malaysia).................................. 2.75 11/28/04 190,187
---------------
ENTERTAINMENT/GAMING (4.8%)
2,500 Argosy Gaming Co............................ 12.00 06/01/01 2,225,000
2,050 Savoy Pictures Entertainment, Inc........... 7.00 07/01/03 1,568,250
1,900 United Gaming, Inc.......................... 7.50 09/15/03 1,083,000
5,200 United Gaming, Inc. - 144A**................ 7.50 09/15/03 2,964,000
2,500 WMS Industries, Inc......................... 5.75 12/01/02 2,300,000
---------------
10,140,250
---------------
FINANCIAL SERVICES (1.0%)
2,000 AT&T Latin American Equity - 144A**......... 0.00 03/30/99 1,750,000
175 HSH Overseas Finance Ltd.
(Cayman Islands)............................ 5.00 01/06/01 182,875
200 Lend Lease Finance International Ltd.
(Australia)................................. 4.75 06/01/03 245,250
---------------
2,178,125
---------------
FOODS (0.0%)
80 Grand Metropolitan PLC
(United Kingdom)............................ 6.50 01/31/00 87,300
---------------
HEALTHCARE (8.4%)
2,000 ARV Assisted Living - 144A**................ 6.75 04/01/06 2,040,000
3,450 Beverly Enterprises, Inc.................... 5.50 08/01/18 3,294,750
2,900 Grancare, Inc............................... 6.50 01/15/03 2,704,250
200 Integrated Health Services, Inc............. 5.75 01/01/01 193,320
2,000 Integrated Health Services, Inc............. 6.00 01/01/03 1,920,000
90 Multicare Companies, Inc.................... 7.00 03/15/03 109,012
2,054 Pacific Physician Services Inc.............. 5.50 12/15/03 2,043,730
605 Quantum Health Resources Inc................ 4.75 10/01/00 480,975
3,000 Tenet Healthcare Corp....................... 6.00 12/01/05 3,285,000
1,500 U.S. Diagnostic Labs Inc. - 144A**.......... 9.00 03/31/03 1,567,500
---------------
17,638,537
---------------
HOME BUILDING (1.3%)
3,015 U.S. Home Corp.............................. 4.875 11/01/05 2,707,832
---------------
HOTELS/MOTELS (1.9%)
1,000 Paliburg International Finance
(Hong Kong)................................. 3.50 02/06/01 947,500
225 Shangri-La Asia Capital (Hong Kong)......... 2.875 12/16/00 191,812
3,400 Sholodge Inc................................ 7.50 05/01/04 2,808,196
---------------
3,947,508
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDUSTRIALS (1.8%)
$ 120 Banpu Public Company Ltd. (Thailand)........ 3.50 % 08/25/04 $ 162,000
100 Sampo Corp. (Taiwan)........................ 2.625 11/23/01 114,000
3,075 Trimas Corp................................. 5.00 08/01/03 3,305,625
100 YTL Corp. Berhad (Malaysia) - 144A**........ 0.00 08/15/02 123,000
---------------
3,704,625
---------------
INSURANCE (2.1%)
75 Aegon NV (Netherlands) - 144A**............. 4.75 11/01/04 124,500
3,000 CII Financial, Inc.......................... 7.50 09/15/01 2,722,500
1,500 Pioneer FinanciaI Services, Inc............. 6.50 04/01/03 1,530,000
200 USF&G Corp.................................. 0.00 03/03/09 112,027
---------------
4,489,027
---------------
LEISURE (1.5%)
8,825 Coleman Worldwide Corp...................... 0.00 05/27/13 3,103,927
---------------
MACHINERY - DIVERSIFIED (2.0%)
4,000 Cooper Industries, Inc...................... 7.05 01/01/15 4,140,000
---------------
MEDIA GROUP (8.1%)
2,055 All American Communications Inc............. 6.50 10/01/03 2,107,670
210 Comcast Corp................................ 3.375 09/09/05 193,492
130 Comcast Corp................................ 1.125 04/15/07 62,933
395 News America Holdings, Inc.................. 0.00 03/11/13 191,430
14,000 Rogers Communications, Inc.................. 2.00 11/26/05 7,323,680
4,065 Scandinavian Broadcasting (Luxembourg)...... 7.25 08/01/05 4,156,462
3,000 Tele-Communications International, Inc...... 4.50 02/15/06 2,853,750
---------------
16,889,417
---------------
METALS (0.5%)
1,250 Crown Resources Corp........................ 5.75 08/27/01 937,500
---------------
OFFICE EQUIPMENT & SUPPLIES (0.4%)
750 U.S. Office Products Co..................... 5.50 02/01/01 907,537
---------------
OIL & GAS (2.4%)
145 Apache Corp................................. 6.00 01/15/02 156,600
11,000 Valhi Inc................................... 0.00 10/20/07 4,883,478
---------------
5,040,078
---------------
PAPER & FOREST PRODUCTS (0.3%)
70 PT International Indorayon Utama
(Indonesia)................................. 5.50 10/01/02 79,275
120 Riverwood International Corp................ 6.75 09/15/03 136,800
350 Sappi BVI Finance Ltd.
(South Africa) - 144A**..................... 7.50 08/01/02 330,750
---------------
546,825
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
POLLUTION CONTROL (0.1%)
$ 85 Laidlaw Inc. (Canada) - 144A**.............. 6.00 % 01/15/99 $ 105,347
213 WMX Technologies, Inc....................... 2.00 01/24/05 190,103
---------------
295,450
---------------
PUBLISHING (2.4%)
10,000 Hollinger, Inc. (Canada).................... 0.00 10/05/13 3,176,142
45 Nelson (Thomas), Inc. - 144A**.............. 5.75 11/30/99 47,025
90 Scholastic Corp. - 144A**................... 5.00 08/15/05 101,250
5,000 Time Warner, Inc............................ 0.00 12/17/12 1,792,795
---------------
5,117,212
---------------
REAL ESTATE (0.3%)
80 Guangzhou Investment Co.
(Hong Kong)................................. 4.50 10/08/98 77,900
200 HD Finance Cayman Ltd.
(Cayman Islands) - 144A**................... 6.75 06/01/00 232,000
290 New World Development
(Hong Kong)................................. 4.375 12/11/00 311,388
---------------
621,288
---------------
REAL ESTATE INVESTMENT TRUST (5.4%)
2,850 Alexander Haagen Properties, Inc. (Series
A).......................................... 7.50 01/15/01 2,465,222
3,750 Camden Property Trust....................... 7.33 04/01/01 3,693,750
40 Liberty Property Trust...................... 8.00 07/01/01 40,850
2,750 Mid Atlantic Realty Trust................... 7.625 09/15/03 2,475,000
2,720 Pacific Gulf Properties Inc................. 8.375 02/15/01 2,652,000
---------------
11,326,822
---------------
RESTAURANTS (1.4%)
3,375 TPI Enterprises, Inc........................ 8.25 07/15/02 2,835,000
---------------
RETAIL (0.9%)
100 Federated Department Stores, Inc............ 5.00 10/01/03 111,333
145 Office Depot, Inc........................... 0.00 11/01/08 82,757
75 Pep Boys-Manny, Moe & Jack.................. 4.00 09/01/99 76,889
2,000 Sports & Recreation Inc..................... 4.25 11/01/00 1,400,000
275 Staples, Inc. - 144A**...................... 4.50 10/01/00 302,844
---------------
1,973,823
---------------
SCIENTIFIC INSTRUMENTS (0.1%)
175 Fisher Scientific International, Inc........ 4.75 03/01/03 199,467
---------------
STEEL (0.6%)
1,275 Nippon Denro Ltd. (India) - 144A**.......... 3.00 04/01/01 733,125
700 Sahaviriya Steel Industries (Thailand) -
144A**...................................... 3.50 07/26/05 577,500
---------------
1,310,625
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TECHNOLOGY (3.2%)
$ 130 EMC Corp.................................... 4.25 % 01/01/01 $ 156,000
2,000 Park Electrochemical Corp................... 5.50 03/01/06 1,862,500
2,000 Safeguard Scientifics, Inc.................. 6.00 02/01/06 2,262,500
150 Storage Technology Corp..................... 8.00 05/31/15 150,000
135 Unisys Corp................................. 8.25 08/01/00 122,175
2,000 Unisys Corp................................. 8.25 03/15/06 2,205,000
---------------
6,758,175
---------------
TELECOMMUNICATIONS (1.8%)
2,500 Audiovox Corp............................... 6.25 03/15/01 1,512,500
285 General Instrument Corp..................... 5.00 06/15/00 343,003
5,270 U.S. Cellular Corp.......................... 0.00 06/15/15 1,863,491
---------------
3,718,994
---------------
TEXTILES (0.1%)
200 Far Eastern Textile (Taiwan)................ 4.00 10/07/06 230,000
---------------
TRANSPORTATION (0.9%)
290 AMR Corp.................................... 6.125 11/01/24 335,440
185 Delta Air Lines, Inc........................ 3.23 06/15/03 182,053
1,000 Reno Air Inc. - 144A**...................... 9.00 09/30/02 1,381,250
---------------
1,898,743
---------------
TRANSPORTATION - INTERNATIONAL (0.3%)
1,651 Consorcio G Grupo Dina S.A. de C.V.
(Mexico).................................... 8.00 08/08/04 643,890
---------------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $135,173,120)....................................... 133,422,110
---------------
NON-CONVERTIBLE BONDS (0.9%)
OIL & GAS (0.0%)
70 SFP Pipeline Holdings, Inc.................. 11.16 08/15/10 92,400
---------------
RESTAURANTS (0.9%)
2,500 Flagstar Corp............................... 11.375 09/15/03 1,837,500
---------------
TOTAL NON-CONVERTIBLE BONDS
(IDENTIFIED COST $2,541,700)......................................... 1,929,900
---------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $137,714,820)....................................... 135,352,010
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (14.1%)
AUTO PARTS (1.0%)
21,300 Federal Mogul Corp. (Series D) $3.875 - 144A**.......................... $ 1,235,400
66,600 Mascotech, Inc. $1.20................................................... 932,400
---------------
2,167,800
---------------
BIOTECHNOLOGY (0.4%)
63,500 Gensia, Inc.* - 144A**.................................................. 746,125
---------------
CHEMICALS (0.1%)
1,700 Occidental Petroleum Corp. $3.875 - 144A**.............................. 105,400
3,300 Occidental Petroleum Corp. (Series A) $3.00............................. 206,662
---------------
312,062
---------------
FINANCIAL SERVICES (0.6%)
1,700 Advanta Corp. $2.50..................................................... 79,900
2,000 Merrill Lynch & Co., Inc. $3.12......................................... 106,500
30,000 Time Warner Financing $1.24............................................. 1,110,000
---------------
1,296,400
---------------
FOODS (0.7%)
30,000 Chiquita Brands International, Inc. (Series A) $2.875................... 1,440,000
---------------
INSURANCE (0.8%)
30,100 Conseco, Inc. (Series D) $3.25.......................................... 1,745,800
---------------
MEDIA GROUP (1.2%)
240,000 Triathlon Broadcasting Co. $0.95........................................ 2,520,000
---------------
METALS (1.8%)
100,000 Pittston Minerals Group (Series C) $3.125 - 144A**...................... 3,725,000
---------------
OIL & GAS (2.1%)
120,000 Callon Petroleum Co. (Series A) $2.125.................................. 3,390,000
40,000 ENRON Corp. $1.36....................................................... 1,015,000
---------------
4,405,000
---------------
PAPER & FOREST PRODUCTS (0.0%)
2,200 International Paper Capital Trust $2.625 - 144A**....................... 101,614
---------------
POLLUTION CONTROL (0.1%)
4,000 Browning-Ferris Industries, Inc. $2.58.................................. 134,000
---------------
PUBLISHING (0.1%)
1,400 Houghton Mifflin Co. $4.08.............................................. 121,800
---------------
REAL ESTATE (1.1%)
50,000 Catellus Development Corp (Series B) $3.625 - 144A**.................... 2,418,750
---------------
STEEL (2.1%)
45,000 WHX Corp. (Series A) $3.25.............................................. 2,064,375
49,000 WHX Corp. (Series B) $3.75.............................................. 2,260,125
---------------
4,324,500
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS (1.6%)
40,000 Globalstar Telecommunications $3.25 - 144A**............................ $ 1,955,000
35,000 Sprint Corp. $2.63...................................................... 1,356,250
---------------
3,311,250
---------------
UTILITIES (0.3%)
15,000 Citizens Utilities Trust $2.50.......................................... 705,000
---------------
WHOLESALE DISTRIBUTOR (0.1%)
1,300 Alco Standard Corp. $5.04............................................... 122,200
---------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $27,663,788)........................................... 29,597,301
---------------
COMMON STOCKS (10.2%)
AUTO PARTS (0.5%)
79,200 Mascotech, Inc.......................................................... 1,059,300
---------------
ELECTRICAL EQUIPMENT (0.7%)
60,000 Berg Electronics Corp.*................................................. 1,410,000
---------------
ENTERTAINMENT/GAMING (0.2%)
20,000 WMS Industries, Inc.*................................................... 347,500
---------------
HEALTHCARE (0.6%)
50,000 Integrated Health Services, Inc......................................... 1,168,750
---------------
MANUFACTURING (0.7%)
161,000 Foamex International Inc.*.............................................. 1,529,500
---------------
MEDICAL PRODUCTS & SUPPLIES (0.7%)
60,000 Neuromedical Systems, Inc.*............................................. 1,297,500
35,000 Phoenix Shannon PLC (ADR)* (Ireland).................................... 258,125
---------------
1,555,625
---------------
POLLUTION CONTROL (0.4%)
122,000 OHM Corp.*.............................................................. 899,750
---------------
REAL ESTATE INVESTMENT TRUST (3.7%)
95,155 Alexander Haagen Properties, Inc........................................ 1,094,283
48,100 Avalon Properties, Inc.................................................. 1,034,150
25,000 Bay Apartment Communities, Inc.......................................... 603,125
55,000 Cali Realty Corp........................................................ 1,230,625
105,000 Irvine Apartment Communities, Inc....................................... 2,008,125
50,000 Patriot American Hospitality, Inc....................................... 1,318,750
25,000 Urban Shopping Centers, Inc............................................. 556,250
---------------
7,845,308
---------------
RESTAURANTS (1.3%)
145,000 Brinker International, Inc.*............................................ 2,428,750
75,000 Flagstar Companies, Inc.*............................................... 225,000
---------------
2,653,750
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C>
RETAIL (0.7%)
19,036 Limited (The), Inc...................................................... $ 361,684
35,000 Michaels Stores, Inc.*.................................................. 490,000
20,000 Toys 'R' Us, Inc.*...................................................... 540,000
---------------
1,391,684
---------------
TELECOMMUNICATIONS (0.5%)
30,000 BCE, Inc. (Canada)...................................................... 1,061,250
---------------
TRANSPORTATION (0.2%)
40,000 Team Rental Group, Inc.*................................................ 380,000
---------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $22,779,030)........................................... 21,302,417
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE VALUE
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS (0.0%)
TELECOMMUNICATIONS
45,000 Audiovox Corp.* - 144A** (Identified Cost $0)............ 03/15/01 45,000
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (8.9%)
U.S. GOVERNMENT AGENCIES (a) (6.7%)
$ 7,000 Federal Home Loan Banks
5.28% - 5.33% due 04/01/96 - 04/04/96................................... 6,998,477
7,000 Federal Home Loan Mortgage Corp.
5.28% - 5.37% due 04/02/96 - 04/03/96................................... 6,998,180
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $13,996,657)............................................ 13,996,657
---------------
REPURCHASE AGREEMENT (2.2%)
4,675 The Bank of New York 4.50% due 04/01/96 (dated 03/29/96; proceeds
$4,676,800; collateralized by $4,461,083 U.S Treasury Bond 7.25% due
05/15/16 valued at $4,768,548) (Identified Cost $4,675,047)............. 4,675,047
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $18,671,704)........................................... 18,671,704
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
Value
------------
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $206,829,342) (B)........................................ 97.8 % $204,968,432
OTHER ASSETS IN EXCESS OF LIABILITIES..................................... 2.2 4,593,588
----- ------------
NET ASSETS................................................................ 100.0% $209,562,020
----- ------------
----- ------------
<FN>
- ---------------------
ADR American Depository Receipt.
WI Security purchased on a when issued basis.
* 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 is $8,303,629 and the
aggregate gross unrealized depreciation is $11,032,910, resulting in net
unrealized depreciation of $2,729,281.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $206,829,342)............................ $ 204,968,432
Receivable for:
Investments sold........................................ 7,434,354
Interest................................................ 1,766,573
Dividends............................................... 331,961
Shares of beneficial interest sold...................... 273,341
Prepaid expenses and other assets........................... 65,189
-------------
TOTAL ASSETS........................................... 214,839,850
-------------
LIABILITIES:
Payable for:
Investments purchased................................... 4,680,761
Plan of distribution fee................................ 176,647
Shares of beneficial interest repurchased............... 113,563
Investment management fee............................... 105,989
Dividends to shareholders............................... 103,714
Accrued expenses and other payables......................... 97,156
-------------
TOTAL LIABILITIES...................................... 5,277,830
-------------
NET ASSETS:
Paid-in-capital............................................. 567,225,117
Net unrealized depreciation................................. (1,860,910)
Accumulated undistributed net investment income............. 5,683,432
Accumulated net realized loss............................... (361,485,619)
-------------
NET ASSETS............................................. $ 209,562,020
-------------
-------------
NET ASSET VALUE PER SHARE,
17,240,973 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$12.15
-------------
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Interest.................................................... $ 6,348,651
Dividends (net of $2,239 foreign withholding tax)........... 1,521,390
-----------
TOTAL INCOME........................................... 7,870,041
-----------
EXPENSES
Plan of distribution fee.................................... 973,225
Investment management fee................................... 583,935
Transfer agent fees and expenses............................ 190,644
Shareholder reports and notices............................. 30,750
Professional fees........................................... 29,973
Custodian fees.............................................. 14,391
Registration fees........................................... 6,594
Trustees' fees and expenses................................. 6,043
Other....................................................... 5,884
-----------
TOTAL EXPENSES......................................... 1,841,439
-----------
NET INVESTMENT INCOME.................................. 6,028,602
-----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................... 7,774,110
Net change in unrealized depreciation....................... 596,329
-----------
NET GAIN............................................... 8,370,439
-----------
NET INCREASE................................................ $14,399,041
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
MARCH 31, 1996 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 6,028,602 $ 9,380,335
Net realized gain........................................... 7,774,110 10,976,243
Net change in unrealized depreciation....................... 596,329 2,262,729
------------------ ------------------
NET INCREASE........................................... 14,399,041 22,619,307
Dividends from net investment income........................ (5,753,398) (8,166,179)
Net increase (decrease) from transactions in shares of
beneficial interest....................................... 15,518,012 (19,449,807)
------------------ ------------------
TOTAL INCREASE (DECREASE).............................. 24,163,655 (4,996,679)
NET ASSETS:
Beginning of period......................................... 185,398,365 190,395,044
------------------ ------------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$5,683,432 AND $5,408,228, RESPECTIVELY)................ $209,562,020 $185,398,365
------------------ ------------------
------------------ ------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Convertible Securities Trust (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund was organized as a
Massachusetts business trust on May 21, 1985 and commenced operations on October
31, 1985.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York or American Stock Exchange is valued at its latest sale price on that
exchange prior to the time when assets are valued; if there were no sales that
day, the security is valued at the latest bid price (in cases where a security
is traded on more than one exchange, the security is valued on the exchange
designated as the primary market by the Trustees); (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation; (3)
when market quotations are not readily available, including circumstances under
which it is determined by the Investment Manager that sale and bid prices are
not reflective of a security's market value, portfolio securities are valued at
their fair value as determined in good faith under procedures established by and
under the general supervision of the Trustees; (4) certain 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 determining what it believes is the fair valuation
of the portfolio securities valued by such pricing service; and (5) short-term
debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-market basis until sixty days prior to maturity
and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with Dean Witter InterCapital
Inc. (the "Investment Manager"), the Fund pays a management fee, accrued daily
and payable monthly, by applying the following annual rates to the Fund's net
assets determined as of the close of each business day: 0.60% to the portion of
daily net assets not exceeding $750 million; 0.55% to the portion of daily net
assets exceeding $750 million but not exceeding $1 billion; 0.50% to the portion
of daily net assets exceeding $1 billion but not exceeding $1.5 billion; 0.475%
to the portion of daily net assets exceeding $1.5 billion but not exceeding $2
billion; 0.45% to the portion of daily net assets exceeding $2 billion but not
exceeding $3 billion; and 0.425% to the portion of daily net assets exceeding $3
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
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager. The Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act pursuant
to which the Fund pays the Distributor compensation, accrued
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
daily and payable monthly, at an annual rate of 1.0% of the lesser of: (a) the
average daily aggregate gross sales of the Fund's shares since the Fund's
inception (not including reinvestment of dividend or capital gain distributions)
less the average daily aggregate net asset value of the Fund's shares redeemed
since the Fund's inception upon which a contingent deferred sales charge has
been imposed or upon which such charge has been waived; or (b) the Fund's
average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services provided and the expenses borne by
it and others in the distribution of the Fund's shares, including the payment of
commissions for sales of the Fund's shares and incentive compensation to, and
expenses of, the account executives of Dean Witter Reynolds Inc. ("DWR"), an
affiliate of the Investment Manager and Distributor, and other employees or
selected broker-dealers who engage in or support distribution of the Fund's
shares or who service shareholder accounts, including overhead and telephone
expenses, printing and distribution of prospectuses and reports used in
connection with the offering of the Fund's shares to other than current
shareholders and preparation, printing and distribution of sales literature and
advertising materials. In addition, the Distributor may be compensated under the
Plan for its opportunity costs in advancing such amounts, which compensation
would be in the form of a carrying charge on any unreimbursed expenses incurred
by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.
The Distributor has informed the Fund that for the six months ended March 31,
1996, it received approximately $68,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended March 31, 1996 aggregated
$185,463,564 and $185,166,919, respectively.
For the same period, the Fund incurred brokerage commissions of $8,202 with DWR
for portfolio transactions executed on behalf of the Fund.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At March 31, 1996, the Fund had
transfer agent fees and expenses payable of approximately $60,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended March 31 1996
included in Trustees' fees and expenses in the Statement of Operations amounted
to $5,104. At March 31, 1996, the Fund had an accrued pension liability of
$49,420 which is included in accrued expenses in the Statement of Assets and
Liabilities.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
MARCH 31, 1996 FOR THE YEAR
---------------------------- ENDED
SEPTEMBER 30, 1995
(UNAUDITED) --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 1,472,280 $ 17,384,394 2,692,941 $ 29,337,865
Reinvestment of dividends........................................ 412,557 4,833,601 648,602 6,920,932
Shares issued in connection with the acquisition of TCW/DW Global
Convertible Trust (Note 6)...................................... 1,665,682 19,179,898 -- --
----------- -------------- ----------- ------------
3,550,519 41,397,893 3,341,543 36,258,797
Repurchased...................................................... (2,195,537) (25,879,881) (5,171,631) (55,708,604)
----------- -------------- ----------- ------------
Net increase (decrease).......................................... 1,354,982 $ 15,518,012 (1,830,088) $(19,449,807)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. ACQUISITION OF TCW/DW GLOBAL CONVERTIBLE TRUST
As of the close of business on December 22, 1995, the Fund acquired all the net
assets of TCW/DW Global Convertible Trust ("Global Convertible") pursuant to a
plan of reorganization approved by the shareholders of Global Convertible on
December 19, 1995. The acquisition was accomplished by a tax-free exchange of
1,665,682 shares of the Fund at a net asset value of $11.52 for 1,811,960 shares
of Global Convertible. The net assets of the Fund and Global Convertible
immediately before the acquisition were $181,407,832 and $19,179,898,
respectively, including unrealized depreciation of $1,047,150 and distributions
in excess of net realized gains of $4,600. Immediately after the acquisition,
the combined net assets of the Fund amounted to $200,587,730.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED) CONTINUED
7. FEDERAL INCOME TAX STATUS
At September 30, 1995, the Fund had a net capital loss carryover of
approximately $368,387,000, to offset future capital gains to the extent
provided by regulations, which is available through September 30 of the
following years:
<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS
----------------------------------------------------------------------------------
1996 1997 1998 1999 2000 TOTAL
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 5,107 $ 218,065 $ 36,349 $ 46,135 $ 62,731 $ 368,387
------ ------------ ------------ ------------ ------------ ------------
------ ------------ ------------ ------------ ------------ ------------
</TABLE>
As of September 30, 1995, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and corporate
reorganizations and permanent book/tax differences primarily attributable to
corporate reorganizations.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE YEAR ENDED SEPTEMBER 30
MARCH 31, 1996 ---------------------------------------
(UNAUDITED) 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 11.67 $ 10.75 $ 10.62
------ ------ ------
Net investment income................................................. 0.34 0.60 0.42
Net realized and unrealized gain...................................... 0.50 0.82 0.11
------ ------ ------
Total from investment operations...................................... 0.84 1.42 0.53
------ ------ ------
Less dividends from net investment income............................. (0.36) (0.50) (0.40)
------ ------ ------
Net asset value, end of period........................................ $ 12.15 $ 11.67 $ 10.75
------ ------ ------
------ ------ ------
TOTAL INVESTMENT RETURN+.............................................. 7.33%(1) 13.68% 5.02%
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.89%(2) 1.96% 1.93%
Net investment income................................................. 6.18%(2) 5.24% 3.68%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions................................ $210 $185 $190
Portfolio turnover rate............................................... 111%(1) 138% 184%
Average commission rate paid.......................................... $0.0581 -- --
<CAPTION>
1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $8.92 $ 8.67 $ 7.65
----- ----- -----
Net investment income................................................. 0.37 0.34 0.37
Net realized and unrealized gain...................................... 1.67 0.15 1.05
----- ----- -----
Total from investment operations...................................... 2.04 0.49 1.42
----- ----- -----
Less dividends from net investment income............................. (0.34) (0.24) (0.40)
----- ----- -----
Net asset value, end of period........................................ $10.62 $ 8.92 $ 8.67
----- ----- -----
----- ----- -----
TOTAL INVESTMENT RETURN+.............................................. 23.22% 5.69% 18.93%
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.93% 1.92% 1.92%
Net investment income................................................. 3.44% 3.43% 4.34%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions................................ $208 $218 $297
Portfolio turnover rate............................................... 221% 145% 133%
Average commission rate paid.......................................... -- -- --
<FN>
- ---------------------
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn CONVERTIBLE
John R. Haire SECURITIES
Dr. Manuel H. Johnson TRUST
Paul Kolton
Michael E. Nugent [GRAPHIC]
Philip J. Purcell
John L. Schroeder SEMIANNUAL REPORT
MARCH 31, 1996
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Michael G. Knox
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and
accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and directors,
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.
