WITTER DEAN CONVERTIBLE SECURITIES TRUST, N-30D, 1997-12-12

WITTER DEAN CONVERTIBLE SECURITIES TRUST
N-30D, 1997-12-12

Previous: CONSOLIDATED STORES CORP /DE/, 10-Q, 1997-12-12

Next: ADVANCE DISPLAY TECHNOLOGIES INC, SC 13D/A, 1997-12-12

<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST TWO WORLD TRADE CENTER, NEW YORK, NEW
YORK 10048
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1997

DEAR SHAREHOLDER:

The twelve-month period ended September 30, 1997, saw the equity markets, as
represented by the Standard & Poor's 500 Composite Stock Index, finish just
slightly off its all-time high set earlier in the third quarter. The convertible
market was also robust, particularly in the latter half of the fiscal year. This
strength can be attributed to the fact that the convertible universe consists of
many small-cap companies that, as a group, outpaced larger names during the
second half of the fiscal year.

Although the economy continued to move along at a strong pace, growing at about
4 percent annually, inflation remained in check. This pattern, in addition to
realistic expectations for a balanced budget, which would result in a reduced
supply of new Treasury debt, made further Federal Reserve tightening seem
unnecessary and hence unlikely. Within such a rosy economic environment,
interest rates fell by as much as 60 basis points from their levels of one year
ago.

PERFORMANCE AND PORTFOLIO

On July 28, 1997, Dean Witter Convertible Securities Trust began offering four
classes of shares -- A, B, C and D -- each with its own sales charge and
distribution fee structure. A revised prospectus, which includes complete
details regarding the Fund's conversion to multiple classes of shares, was
mailed to shareholders in mid-Summer.

The Fund's Class B shares produced a total return of 23.38 percent for the
fiscal year ended September 30, 1997. This compares to a return of 24.77 percent
for the Goldman Sachs Convertible 100 Index and 24.02 percent for the Lipper
Convertible Securities Funds Average. The Fund slightly underperformed its peer
group, primarily due to its greater exposure to small-cap companies, which in
general lagged large caps for much of the first half of the fiscal year. More
recently, however, small caps have demonstrated significant strength relative to
larger names, particularly during the last two quarters. The Fund's recent
performance has benefited from this trend.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1997, CONTINUED

During this period, Class B's quarterly income dividend was
increased from $.13 per share to $.1325 per share. Total
distributions paid during the fiscal year were $.555 per
share, including an extra income dividend of $.03 per share
paid on December 31, 1996. The accompanying chart illustrates
the growth of a hypothetical $10,000 investment in the Fund's
Class B shares from September 30, 1987 through September 30,
1997, versus a similar investment in the issues that comprise
the Goldman Sachs Index and the Lipper Average. The Fund's
inception date was October 31, 1985.

The Fund uses a value-oriented, bottom-up approach to
evaluate companies and their investment merits. The Fund
places an emphasis 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 that we believe
offer excellent participation in a rising equity market as
well as downside protection in a declining market. In an
attempt to manage 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 traits include a relatively high yield to support the
convertible if the underlying stock declines and a reasonable
conversion premium to ensure participation in any
appreciation of the underlying stock.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
Growth of $10,000 - Class B

<S> <C> <C> <C>
Fund Goldman Sachs(4) Lipper(5)
9/30/1987 $10,000 $10,000 $10,000
9/30/1988 $8,021 $9,318 $9,220
9/30/1989 $9,641 $10,449 $10,857
9/30/1990 $8,009 $8,868 $9,620
9/30/1991 $9,525 $11,145 $12,187
9/30/1992 $10,067 $13,151 $13,859
9/30/1993 $12,405 $15,578 $16,639
9/30/1994 $13,027 $15,980 $16,621
9/30/1995 $14,809 $18,995 $19,113
9/30/1996 $16,986 $21,656 $21,576
9/30/1997 $20,958(3) $27,022 $26,759
Average Annual Total Return (Fund)
1 Year 5 Years 10 Years
23.38(1) 15.80(1) 7.68(1)
18.38(2) 15.57(2) 7.68(2)
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.

(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%, 5
years-2%, ten years-0%). See the Fund's current prospectus for complete
details on fees and sales charges.

(3) Closing value assuming a complete redemption on September 30, 1997.

(4) The Goldman Sachs Convertible 100 Index tracks the performance of 100
equally weighted convertible issues with market capitalizations of at least
$100 million. The Index does not include any expenses, fees or charges. The
Index is unmanaged and should not be considered an investment.

(5) The Lipper Convertible Securities Funds Average tracks the performance of
the funds which primarily invest in convertible bonds and convertible
preferred shares as reported by Lipper Analytical Services.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1997, CONTINUED

As of September 30, 1997, the Fund had exposure to a broad range of industries
including health care (15.2 percent), telecommunications (4.9 percent),
restaurants (4.7 percent), real estate investment trusts (5.9 percent) and shoes
(3.3 percent). In addition, a small portion of the Fund invests in common stocks
in order to further diversify holdings into industries and companies not
represented in the convertible universe. As of September 30, 1997, common stocks
represented 8 percent of the Fund's portfolio.
Among the Fund's largest holdings on September 30, 1997 were U.S. Office
Products Company (one of the world's largest and fastest growing suppliers of
office and educational products), Nine West Group, Inc. (the leading maker of
women's dress shoes), MascoTech, Inc. (an independent supplier of engine and
drivetrain components for the global transportation industry), Physicians
Resource Group, Inc. (provider of physician practice management services to
ophthalmic and optometric practices) and Phymatrix Corporation (a physician
management company providing support and management services to specialists and
primary care physicians).
LOOKING AHEAD
It is our expectation that convertibles can perform well in the long run,
offering competitive returns in modestly increasing, stable or declining equity
markets, but will lag during very strong periods. Going forward, the Fund will
maintain its focus on small-cap issues that we believe offer significant value
with strong upside participation.
We appreciate your continued 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
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
RESULTS OF SPECIAL MEETING (UNAUDITED)

On May 21, 1997, a special meeting of the Fund's shareholders was held for the
purpose of voting on four separate matters, the results of which are as follows:
(1) APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT BETWEEN THE FUND AND DEAN
WITTER INTERCAPITAL INC., IN CONNECTION WITH THE MERGER OF MORGAN STANLEY
GROUP INC. WITH DEAN WITTER, DISCOVER & CO.:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------------------------------------------------------------------------------------------ ----------------
<S> <C>
For............................................................................................................... 10,217,126
Against........................................................................................................... 255,960
Abstain........................................................................................................... 832,417
</TABLE>

(2) ELECTION OF TRUSTEES:

<TABLE>
<S> <C>
Michael Bozic
For............... 10,700,397
Withheld.......... 605,106
Charles A. Fiumefreddo
For............... 10,718,096
Withheld.......... 587,407
Edwin J. Garn
For............... 10,707,834
Withheld.......... 597,669
John R. Haire
For............... 10,706,190
Withheld.......... 599,313
Wayne E. Hedien
For............... 10,707,676
Withheld.......... 597,827
Dr. Manuel H. Johnson
For............... 10,723,711
Withheld.......... 581,792
Michael E. Nugent
For............... 10,727,080
Withheld.......... 578,423
Philip J. Purcell
For............... 10,728,407
Withheld.......... 577,096
John L. Schroeder
For............... 10,721,725
Withheld.......... 583,778
</TABLE>

(3) APPROVAL OF A NEW INVESTMENT POLICY WITH RESPECT TO INVESTMENTS IN CERTAIN
OTHER INVESTMENT COMPANIES:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
For................................................................................................................ 9,837,977
Against............................................................................................................ 456,396
Abstain............................................................................................................ 1,011,130
</TABLE>

(4) RATIFICATION OF THE SELECTION OF PRICE WATERHOUSE LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------------------------------------------------------------------------------------------ ----------------
<S> <C>
For............................................................................................................... 10,481,818
Against........................................................................................................... 124,890
Abstain........................................................................................................... 698,795
</TABLE>
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS (50.1%)
AUTO PARTS (1.9%)
$ 6,750 MascoTech, Inc................................................................. 4.50% 12/15/03 $ 6,086,272
------------
BIOTECHNOLOGY (0.7%)
1,500 Nabi, Inc...................................................................... 6.50 02/01/03 1,329,840
1,050 Nabi, Inc. - 144A**............................................................ 6.50 02/01/03 930,888
------------
2,260,728
------------
BROADCAST MEDIA (0.7%)
2,065 Scandinavian Broadcasting System SA (Luxembourg)............................... 7.25 08/01/05 2,126,950
------------
CABLE/CELLULAR (2.9%)
6,500 Tele-Communications International, Inc......................................... 4.50 02/15/06 5,419,375
10,270 U.S. Cellular Corp............................................................. 0.00 06/15/15 3,855,358
------------
9,274,733
------------
COMPUTER SOFTWARE (1.0%)
3,000 Tecnomatix Technologies (Israel) - 144A**...................................... 5.25 08/15/04 3,320,160
------------
ELECTRONICS & ELECTRICAL (1.9%)
3,000 Kent Electronics Corp.......................................................... 4.50 09/01/04 3,054,300
3,000 Richey Electronics Inc......................................................... 7.00 03/01/06 2,947,500
------------
6,001,800
------------
ENTERTAINMENT (0.6%)
5,000 Time Warner, Inc............................................................... 0.00 12/17/12 1,958,300
------------
ENTERTAINMENT/GAMING (0.6%)
2,050 Savoy Pictures Entertainment, Inc.............................................. 7.00 07/01/03 1,768,125
------------
FINANCE - LEASING (0.4%)
1,500 Leasing Solutions, Inc......................................................... 6.875 10/01/03 1,371,570
------------
FINANCIAL SERVICES (2.4%)
3,360 Aames Financial Corp. (Eurobond)............................................... 5.50 03/15/06 3,397,800
2,000 AT&T Latin American Equity - 144A**............................................ 0.00 03/30/99 2,010,000
1,000 Cityscape Financial Corp....................................................... 6.00 05/01/06 460,240
1,000 Cityscape Financial Corp. (Eurobond)........................................... 6.00 05/01/06 470,000
2,500 Cityscape Financial Corp. - 144A**............................................. 6.00 05/01/06 1,150,600
------------
7,488,640
------------
FOREIGN GOVERNMENT (0.7%)
2,000 Republic of Italy (Italy)...................................................... 5.00 06/28/01 2,100,000
------------
HEALTH & PERSONAL CARE (1.5%)
4,350 Thermolase Corp. - 144A**...................................................... 4.375 08/05/04 4,646,365
------------
HEALTHCARE (10.8%)
2,500 ARV Assisted Living, Inc....................................................... 6.75 04/01/06 2,340,625
3,000 Emeritus Corp. - 144A**........................................................ 6.25 01/01/06 2,658,750
2,000 Greenery Rehabilitation Group, Inc............................................. 8.75 04/01/15 1,802,040
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,200 Integrated Health Services, Inc................................................ 5.75% 01/01/01 $ 2,416,040
3,000 NCS Healthcare Inc. - 144A**................................................... 5.75 08/15/04 3,020,010
500 Phoenix Shannon - 144A** (Ireland) (a)......................................... 9.50 11/01/00 241,250
7,960 Phymatrix Corp................................................................. 6.75 06/15/03 6,935,150
6,200 Physicians Resource Group, Inc. - 144A**....................................... 6.00 12/01/01 5,475,654
3,000 Quantum Health Resources Inc................................................... 4.75 10/01/00 2,827,500
2,000 Rotech Medical Corp............................................................ 5.25 06/01/03 1,972,500
3,500 Sterling House Corp............................................................ 6.75 06/30/06 4,532,500
------------
34,222,019
------------
HEALTHCARE - MISCELLANEOUS (1.2%)
4,250 Pharmaceutical Marketing Services, Inc......................................... 6.25 02/01/03 3,661,630
150 Pharmaceutical Marketing Services, Inc. (Eurobond)............................. 6.25 02/01/03 129,000
------------
3,790,630
------------
HOTELS/MOTELS (1.6%)
5,150 Sholodge Inc................................................................... 7.50 05/01/04 5,137,125
------------
MEDIA GROUP (0.1%)
395 News America Holdings, Inc..................................................... 0.00 03/11/13 179,994
------------
MEDICAL PRODUCTS & SUPPLIES (0.6%)
2,750 Uromed Corp.................................................................... 6.00 10/15/03 1,892,798
------------
METALS & MINING (0.3%)
1,250 Crown Resources Corp. (Eurobond)............................................... 5.75 08/27/01 1,100,000
------------
MISCELLANEOUS (0.7%)
250 Veterinary Centers of America, Inc............................................. 5.25 05/01/06 190,448
2,550 Veterinary Centers of America, Inc. (Eurobond)................................. 5.25 05/01/06 1,950,750
------------
2,141,198
------------
OFFICE EQUIPMENT & SUPPLIES (3.0%)
2,000 U.S. Office Products Co. (Eurobond)............................................ 5.50 05/15/03 1,978,760
7,675 U.S. Office Products Co........................................................ 5.50 05/15/03 7,584,742
------------
9,563,502
------------
OIL & GAS (1.5%)
4,000 Halter Marine Group, Inc. - 144A**............................................. 4.50 09/15/04 4,617,520
------------
PUBLISHING (3.0%)
13,000 Hollinger, Inc. (Canada)....................................................... 0.00 10/05/13 4,980,690
4,445 Nelson (Thomas), Inc........................................................... 5.75 11/30/99 4,531,144
------------
9,511,834
------------
REAL ESTATE INVESTMENT TRUST (0.9%)
2,850 Alexander Haagen Properties, Inc. (Series A)................................... 7.50 01/15/01 2,821,500
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997, CONTINUED

TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $152,316,623).................................................................... 158,817,225
------------
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF
SHARES
- ---------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (26.8%)
APPAREL (1.4%)
111,000 Designer Finance Trust $3.00...................................................................... 4,384,500
------------
BANKS - INTERNATIONAL (1.7%)
110,000 National Australia Bank, Ltd. $1.969 (Australia) (Units) ++....................................... 3,231,250
66,000 Westpac Banking Corp. (STRYPES) $3.14 (WI)........................................................ 2,120,250
------------
5,351,500
------------
BIOTECHNOLOGY (0.5%)
63,500 Gensia Inc. $3.75 - 144A**........................................................................ 1,682,750
------------
BROADCAST MEDIA (3.4%)
91,000 Metromedia International Group $3.63.............................................................. 4,680,812
77,000 Sinclair Broadcasting Group $3.00................................................................. 4,100,250
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
242,000 Triathlon Broadcasting Co. $0.945................................................................. $ 2,087,250
------------
10,868,312
------------
COMPUTER SOFTWARE (1.4%)
51,000 Microsoft Corp. (Series A) $2.196................................................................. 4,472,062
------------
FINANCE (4.1%)
125,000 Insignia Financing, Inc. $3.25***................................................................. 6,031,250
100,000 Merrill Lynch & Co., Inc. (STRYPES) $4.087 (1).................................................... 7,050,000
------------
13,081,250
------------
HEALTHCARE (1.7%)
191,400 Kapson Senior Quarters $2.00 - 144A**............................................................. 5,215,650
------------
INDUSTRIALS (1.0%)
75,000 Elsag Bailey Process Automation $2.75 (Netherlands)............................................... 3,084,375
------------
MACHINE TOOLS (1.5%)
100,000 Greenfield Capital Trust, Inc. $3.00.............................................................. 4,756,300
------------
OIL & GAS (1.8%)
55,000 Callon Petroleum Co. (Series A) $2.125............................................................ 2,330,625
155,000 ENRON Corp. $1.36................................................................................. 3,477,813
------------
5,808,438
------------
PUBLISHING (0.6%)
165,000 Hollinger International, Inc. $0.951.............................................................. 2,031,563
------------
REAL ESTATE (0.6%)
36,600 Rouse Co. (Series B) $3.00........................................................................ 1,820,850
------------
REAL ESTATE INVESTMENT TRUST (2.5%)
98,000 Equity Residential Properties Trust (Series E) $1.75.............................................. 2,940,000
151,100 FelCor Suite Hotels, Inc. (Series A) $1.95***..................................................... 4,910,750
------------
7,850,750
------------
TELECOMMUNICATIONS (4.6%)
70,000 General Datacomm Industries, Inc. $2.25........................................................... 1,295,000
25,453 IXC Communication, Inc. $7.25 - 144A**+........................................................... 3,665,232
136,400 Loral Space & Communications Ltd. (Series C) $3.00 (Bermuda)...................................... 8,201,050
35,000 Sprint Corp. $2.63................................................................................ 1,316,875
------------
14,478,157
------------

TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $76,002,350)..................................................................... 84,886,457
------------

COMMON STOCKS (8.1%)
APPAREL (0.5%)
180,000 Designer Holdings Ltd.*........................................................................... 1,755,000
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997, CONTINUED

TOTAL COMMON STOCKS
(IDENTIFIED COST $20,537,890)..................................................................... 25,823,202
------------
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE
- --------- ----------
<C> <S> <C> <C>
WARRANT (0.0%)
TELECOMMUNICATIONS
45,000 Audiovox Corp.* - 144A**
(IDENTIFIED COST $0)................................................................ 03/15/01 129,375
------------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE
- --------- --------- -----------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (14.1%)
COMMERCIAL PAPER (b) (3.8%)
AUTOMOTIVE - FINANCE
$ 12,000 Ford Motor Credit Co. (AMORTIZED COST $11,986,933)................. 5.60% 10/08/97 11,986,933
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997, CONTINUED

<TABLE>
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES (b) (10.2%)
$ 32,500 Federal Home Loan Mortgage Corp. (AMORTIZED COST $32,490,761)...... 5.42-6.05% 10/01/97-10/06/97 $ 32,490,761
------------

REPURCHASE AGREEMENT (0.1%)
413 The Bank of New York (dated 09/30/97; proceeds $412,766) (c)
(IDENTIFIED COST $412,706)....................................... 5.25 10/01/97 412,706
------------

TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $44,890,400)..................................................................... 44,890,400
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $293,747,263) (d).................................................................. 99.1 % 314,546,659

OTHER ASSETS IN EXCESS OF LIABILITIES............................................................... 0.9 2,777,114
------ -------------

NET ASSETS.......................................................................................... 100.0 % $ 317,323,773
------ -------------
------ -------------
</TABLE>

- ---------------------

STRYPES Structured yield product exchangeable for stock.
WI Security was purchased on a when issued basis.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
*** Some or all of these securities are segregated in connection with the
purchase of when issued securities.
++ Consists of one or more class of securities traded together as a unit;
stocks with attached warrants.
+ Payment-in-kind security.
(1) Exchangeable for SunAmerica, Inc. common stock.
(a) Non-income producing security; bond in default.
(b) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(c) Collateralized by $158,132 U.S. Treasury Bond 9.125% due 05/15/18
valued at $211,229 and $202,599 U.S. Treasury Note 6.25% due 10/31/01
valued at $209,731.
(d) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$28,400,923 and the aggregate gross unrealized depreciation is
$7,601,527, resulting in net unrealized appreciation of $20,799,396.

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $293,747,263).............................................................. $314,546,659
Receivable for:
Investments sold.......................................................................... 3,624,174
Shares of beneficial interest sold........................................................ 2,462,416
Interest.................................................................................. 2,260,717
Dividends................................................................................. 156,000
Prepaid expenses and other assets............................................................. 72,772
------------
TOTAL ASSETS............................................................................. 323,122,738
------------
LIABILITIES:
Payable for:
Investments purchased..................................................................... 4,879,725
Plan of distribution fee.................................................................. 268,603
Shares of beneficial interest repurchased................................................. 252,691
Investment management fee................................................................. 161,181
Dividends and distributions to shareholders............................................... 105,434
Accrued expenses and other payables........................................................... 131,331
------------
TOTAL LIABILITIES........................................................................ 5,798,965
------------
NET ASSETS............................................................................... $317,323,773
------------
------------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................... $436,091,918
Net unrealized appreciation................................................................... 20,799,396
Accumulated undistributed net investment income............................................... 5,708,126
Accumulated net realized loss................................................................. (145,275,667)
------------
NET ASSETS............................................................................... $317,323,773
------------
------------
CLASS A SHARES:
Net Assets.................................................................................... $50,180
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 3,329
NET ASSET VALUE PER SHARE................................................................ $15.07
------------
------------

MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.55% OF NET ASSET VALUE)........................................ $15.91
------------
------------
CLASS B SHARES:
Net Assets.................................................................................... $316,632,518
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 21,004,091
NET ASSET VALUE PER SHARE................................................................ $15.07
------------
------------
CLASS C SHARES:
Net Assets.................................................................................... $620,260
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 41,184
NET ASSET VALUE PER SHARE................................................................ $15.06
------------
------------
CLASS D SHARES:
Net Assets.................................................................................... $20,815
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 1,380
NET ASSET VALUE PER SHARE................................................................ $15.08
------------
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1997*

<TABLE>
<S> <C>
NET INVESTMENT INCOME:

INCOME
Interest....................................................................................... $11,859,996
Dividends...................................................................................... 4,692,488
-----------

TOTAL INCOME.............................................................................. 16,552,484
-----------

EXPENSES
Plan of distribution fee (Class B shares)...................................................... 2,630,363
Investment management fee...................................................................... 1,578,570
Transfer agent fees and expenses............................................................... 364,507
Shareholder reports and notices................................................................ 76,902
Professional fees.............................................................................. 75,493
Registration fees.............................................................................. 56,804
Custodian fees................................................................................. 27,593
Trustees' fees and expenses.................................................................... 15,691
Other.......................................................................................... 13,669
-----------

TOTAL EXPENSES............................................................................ 4,839,592
-----------

NET INVESTMENT INCOME..................................................................... 11,712,892
-----------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain.............................................................................. 28,783,111
Net change in unrealized appreciation.......................................................... 17,490,793
-----------

NET GAIN.................................................................................. 46,273,904
-----------

NET INCREASE................................................................................... $57,986,796
-----------
-----------

<FN>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
</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 YEAR FOR THE YEAR
ENDED ENDED
SEPTEMBER 30, 1997* SEPTEMBER 30, 1996
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income................................................. $ 11,712,892 $ 9,834,008
Net realized gain..................................................... 28,783,111 13,199,408
Net change in unrealized appreciation................................. 17,490,793 5,765,842
------------------- -------------------

NET INCREASE..................................................... 57,986,796 28,799,258
------------------- -------------------

DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.................................................... (423) --
Class B shares.................................................... (10,913,049) (10,327,902)
Class C shares.................................................... (5,412) --
Class D shares.................................................... (216) --
------------------- -------------------

TOTAL DIVIDENDS.................................................. (10,919,100) (10,327,902)
------------------- -------------------
Net increase from transactions in shares of beneficial interest....... 35,921,871 30,464,485
------------------- -------------------

NET INCREASE..................................................... 82,989,567 48,935,841

NET ASSETS:
Beginning of period................................................... 234,334,206 185,398,365
------------------- -------------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $5,708,126 AND
$4,914,784, RESPECTIVELY)......................................... $317,323,773 $234,334,206
------------------- -------------------
------------------- -------------------

<FN>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997

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's investment objective is to
seek a high level of total return on its assets through a combination of current
income and capital appreciation. The Fund was organized as a Massachusetts
business trust on May 21, 1985 and commenced operations on October 31, 1985. On
July 28, 1997, the Fund commenced offering three additional classes of shares,
with the then current shares designated as Class B shares.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase, some Class
A shares, and most Class B shares and Class C shares are subject to a contingent
deferred sales charge imposed on shares redeemed within one year, six years and
one year, respectively. Class D shares are not subject to a sales charge.
Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

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 -- (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 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 Dean Witter InterCapital Inc. (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 (valuation of debt securities for which market
quotations are not readily available may be based upon current market prices of
securities which are comparable in coupon, rating and maturity or an appropriate
matrix utilizing similar factors); (4) certain portfolio securities may be
valued by an outside pricing service approved by the Trustees. The pricing
service
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997, CONTINUED

may utilize 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.
Dividend income and other distributions are recorded on the ex-dividend date.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.

C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. 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.

E. 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.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997, CONTINUED

2. INVESTMENT MANAGEMENT AGREEMENT

Pursuant to an Investment Management Agreement with the Investment Manager, the
Fund pays the Investment Manager 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 the
daily net assets not exceeding $750 million; 0.55% to the portion of the 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. The Plan
provides that the Fund will pay the Distributor a fee which is accrued daily and
paid monthly at the following annual rates: (i) Class A -- 0.25% of the average
daily net assets of Class A; (ii) Class B -- 1.0% of the lesser of: (a) the
average daily aggregate gross sales of the Class B shares since the inception of
the Fund (not including reinvestment of dividend or capital gain distributions)
less the average daily aggregate net asset value of the Class B shares redeemed
since the Fund's inception upon which a contingent deferred sales charge has
been imposed or waived; or (b) the average daily net assets of Class B; and
(iii) Class C -- 1.0% of the average daily net assets of Class C. In the case of
Class A shares, amounts paid under the Plan are paid to the Distributor for
services provided. In the case of Class B and Class C shares, amounts paid under
the Plan are paid to the Distributor for services provided and the expenses
borne by it and others in the distribution of the shares of these Classes,
including the payment of commissions for sales of these Classes 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
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997, CONTINUED

others who engage in or support distribution of the 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
these shares to other than current shareholders; and preparation, printing and
distribution of sales literature and advertising materials. In addition, the
Distributor may utilize fees paid pursuant to the Plan, in the case of Class B
shares, to compensate DWR and other selected broker-dealers for their
opportunity costs in advancing such amounts, which compensation would be in the
form of a carrying charge on any unreimbursed expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $76,540,279 at September 30, 1997.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to account executives may be reimbursed in the subsequent
calendar year. For the period ended September 30, 1997, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
1.0%, respectively.

The Distributor has informed the Fund that for the period ended September 30,
1997, it received contingent deferred sales charges from certain redemptions of
the Fund's Class B shares of $191,981 and received $1,643 in front-end sales
charges from sales of the Fund's Class A shares. The respective shareholders pay
such charges which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the year ended September 30, 1997 aggregated
$447,026,213 and $425,228,071, respectively.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997, CONTINUED

For the same period, the Fund incurred brokerage commissions of $1,258 with DWR
for portfolio transactions executed on behalf of the Fund.

Dean Witter Trust FSB, an affiliate of the Investment Manager and Distributor,
is the Fund's transfer agent. At September 30, 1997, the Fund had transfer agent
fees and expenses payable of approximately $4,800.

The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended September 30, 1997
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,406. At September 30, 1997, the Fund had an accrued pension liability of
$48,395 which is included in accrued expenses in the Statement of Assets and
Liabilities.

5. FEDERAL INCOME TAX STATUS

During the year ended September 30, 1997, the Fund utilized approximately
$25,974,000 of its net capital loss carryover. At September 30, 1997, the Fund
had a net capital loss carryover of approximately $145,215,000 to offset future
capital gains to the extent provided by regulations through September 30 of the
following years:

<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS
- -------------------------------------
1998 1999 2000
- ----------- ----------- -----------
<S> <C> <C>
$ 36,349 $ 46,135 $ 62,731
- ----------- ----------- -----------
- ----------- ----------- -----------
</TABLE>

As of September 30, 1997, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to an expired capital loss carryover. To
reflect reclassifications arising from the permanent differences,
paid-in-capital was charged $181,981,543, accumulated undistributed net
investment income was charged $450 and accumulated net realized loss was
credited $181,981,993.

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.
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997, CONTINUED

7. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
SEPTEMBER 30, 1997 SEPTEMBER 30, 1996
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES*
Sold............................................................. 3,315 $ 48,759 -- --
Reinvestment of dividends........................................ 14 215 -- --
----------- -------------- ----------- ------------
Net increase--Class A............................................ 3,329 48,974 -- --
----------- -------------- ----------- ------------

CLASS B SHARES
Sold............................................................. 8,039,107 107,873,505 6,348,274 $ 78,466,531
Reinvestment of dividends........................................ 650,270 8,859,176 715,417 8,632,934
Shares issued in connection with the acquisition of TCW/DW Global
Convertible Trust (Note 6)...................................... -- -- 1,665,682 19,179,898
Redeemed......................................................... (6,107,632) (81,482,825) (6,193,018) (75,814,878)
----------- -------------- ----------- ------------
Net increase--Class B............................................ 2,581,745 35,249,856 2,536,355 30,464,485
----------- -------------- ----------- ------------

CLASS C SHARES*
Sold............................................................. 41,818 612,076 -- --
Reinvestment of dividends........................................ 303 4,520 -- --
Redeemed......................................................... (937) (13,788) -- --
----------- -------------- ----------- ------------
Net increase--Class C............................................ 41,184 602,808 -- --
----------- -------------- ----------- ------------

CLASS D SHARES*
Sold............................................................. 1,366 20,017 -- --
Reinvestment of dividends........................................ 14 216 -- --
----------- -------------- ----------- ------------
Net increase--Class D............................................ 1,380 20,233 -- --
----------- -------------- ----------- ------------
Net increase in Fund............................................. 2,627,638 $ 35,921,871 2,536,355 $ 30,464,485
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
<FN>

- ---------------------
* For the period July 28, 1997 (issue date) through September 30, 1997.
</TABLE>
<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 YEAR ENDED SEPTEMBER 30
----------------------------------------------------------------------------------------------------------------
1997*++ 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES

PER SHARE
OPERATING
PERFORMANCE:

Net asset value,
beginning of
period.......... $ 12.72 $ 11.67 $ 10.75 $ 10.62 $ 8.92 $ 8.67 $ 7.65 $ 9.68 $ 8.63 $ 12.42
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

Net investment
income.......... 0.60 0.55 0.60 0.42 0.37 0.34 0.37 0.46 0.48 0.38

Net realized and
unrealized gain
(loss).......... 2.31 1.12 0.82 0.11 1.67 0.15 1.05 (2.06) 1.20 (2.87)
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

Total from
investment
operations...... 2.91 1.67 1.42 0.53 2.04 0.49 1.42 (1.60) 1.68 (2.49)
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

Less dividends
and
distributions
from:
Net investment
income........ (0.56) (0.62) (0.50) (0.40) (0.34) (0.24) (0.40) (0.43) (0.63) (0.23)
Net realized
gain.......... -- -- -- -- -- -- -- -- -- (1.07)
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

Total dividends
and
distributions... (0.56) (0.62) (0.50) (0.40) (0.34) (0.24) (0.40) (0.43) (0.63) (1.30)
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

Net asset value,
end of period... $ 15.07 $ 12.72 $ 11.67 $ 10.75 $ 10.62 $ 8.92 $ 8.67 $ 7.65 $ 9.68 $ 8.63
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------
---------- --------- --------- ---------- --------- --------- ----- --------- --------- ----------

TOTAL INVESTMENT
RETURN+.......... 23.38% 14.70% 13.68% 5.02% 23.22% 5.69% 18.93% (16.93)% 20.20% (19.79)%

RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 1.84% 1.89% 1.96% 1.93% 1.93% 1.92% 1.92% 1.88% 1.76% 1.79%

Net investment
income.......... 4.45% 4.78% 5.24% 3.68% 3.44% 3.43% 4.34% 4.96% 4.93% 3.87%

SUPPLEMENTAL DATA:
Net assets, end
of period, in
millions........ $317 $234 $185 $190 $208 $218 $297 $413 $822 $1,073

Portfolio
turnover rate... 182% 171% 138% 184% 221% 145% 133% 92% 167% 472%

Average
commission rate
paid............ $0.0510 $0.0581 -- -- -- -- -- -- -- --
<FN>

- ---------------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.

++ The per share amounts were computed using an average number of shares
outstanding during the period.

+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
SEPTEMBER 30,
1997++
- ----------------------------------------------------------------------------------------
<S> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 14.31
------
Net investment income................................................. 0.13
Net realized and unrealized gain...................................... 0.78
------
Total from investment operations...................................... 0.91
------
Less dividends from net investment income............................. (0.15)
------
Net asset value, end of period........................................ $ 15.07
------
------
TOTAL INVESTMENT RETURN+.............................................. 6.40%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.15%(2)
Net investment income................................................. 5.03%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $50
Portfolio turnover rate............................................... 182%
Average commission rate paid.......................................... $0.0510

CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 14.31
------
Net investment income................................................. 0.12
Net realized and unrealized gain...................................... 0.77
------
Total from investment operations...................................... 0.89
------
Less dividends from net investment income............................. (0.14)
------
Net asset value, end of period........................................ $ 15.06
------
------
TOTAL INVESTMENT RETURN+.............................................. 6.26%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.92%(2)
Net investment income................................................. 4.52%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $620
Portfolio turnover rate............................................... 182%
Average commission rate paid.......................................... $0.0510
<FN>

- ---------------------
* The date shares were first issued.

++ The per share amounts were computed using an average number of shares
outstanding during the period.

+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.

(1) Not annualized.

(2) Annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
SEPTEMBER 30,
1997++
- ----------------------------------------------------------------------------------------

<S> <C>
CLASS D SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period.................................. $ 14.31
------

Net investment income................................................. 0.13

Net realized and unrealized gain...................................... 0.80
------

Total from investment operations...................................... 0.93
------

Less dividends from net investment income............................. (0.16)
------

Net asset value, end of period........................................ $ 15.08
------
------

TOTAL INVESTMENT RETURN+.............................................. 6.42%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.89%(2)

Net investment income................................................. 4.94%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $21

Portfolio turnover rate............................................... 182%

Average commission rate paid.......................................... $0.0510
<FN>

- ---------------------
* The date shares were first issued.

++ The per share amounts were computed using an average number of shares
outstanding during the period.

+ Calculated based on the net asset value as of the last business day of the
period.

(1) Not annualized.

(2) Annualized
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CONVERTIBLE SECURITIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER CONVERTIBLE SECURITIES TRUST

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Convertible Securities
Trust, (the "Fund") at September 30, 1997, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1997, by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
NOVEMBER 10, 1997

1997 FEDERAL TAX NOTICE (UNAUDITED)

During the fiscal year ended September 30, 1997, 34.16% of the
income dividends qualified for dividends received deduction
available to corporations.
<PAGE>
DEAN WITTER
CONVERTIBLE
SECURITIES
TRUST

ANNUAL REPORT
SEPTEMBER 30, 1997

TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Barry Fink
Vice President, Secretary and General Counsel

Michael G. Knox
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT
Dean Witter Trust FSB
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

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.