<PAGE> 1
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST Two World Trade Center
LETTER TO THE SHAREHOLDERS March 31, 2000 New York, New York 10048
DEAR SHAREHOLDER:
During the six-month period ended March 31, 2000, the economy continued to
exhibit very strong growth with moderate inflationary pressures. Concerned by
the strength in the global economy and the threat of rising inflation, the
Federal Reserve Board continued its recent pattern of raising the federal funds
rate, increasing it to 6.00 percent in three steps during the period. However,
because of concerns surrounding the Y2K phenomenon the Fed simultaneously added
substantial liquidity to the marketplace. This action in turn fueled the equity
markets to new heights while forcing interest rates to their highest levels in
this economic cycle.
Interest rates on intermediate U.S. Treasuries were highly volatile during the
period. Five-year Treasuries ranged in yield from 5.75 percent and 6.77 percent.
On March 31, the five-year Treasury note was yielding 6.31 percent compared to
5.75 percent six months earlier.
PERFORMANCE AND PORTFOLIO STRATEGY
For the six-month period ended March 31, 2000, Morgan Stanley Dean Witter
Government Income Trust produced a total return of 2.00 percent, based on a
change in net asset value (NAV) and reinvestment of dividends totaling $0.27.
Based on a change in the Fund's market price on the New York Stock Exchange
(NYSE) and reinvestment of dividends, the Fund's total return for the period was
1.01 percent.
As of March 31, 2000, the Trust had net assets in excess of $366 million, with
60 percent invested in mortgage-backed securities issued by the Government
National Mortgage Association (GNMA), the Federal National Mortgage Association
(FNMA) and the Federal Home Loan Mortgage Corp. (FHLMC), 30 percent in U.S.
agency obligations, 10 percent in U.S. Treasury securities, and less than 1
percent in cash equivalents. On March 31, 2000, the Trust's average maturity was
7.5 years. Adjustments to the Trust's average maturity will be made as
attractive opportunities present themselves.
<PAGE> 2
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS March 31, 2000, continued
LOOKING AHEAD
We believe that U.S. economic growth is likely to moderate while inflation
remains at acceptable levels. However, should our economy continue to display
inordinately strong growth coupled with accelerating inflation, the Fed may need
to take a more aggressive stance on monetary policy.
We would again like to remind shareholders that the Trustees have approved a
procedure whereby the Trust may, when appropriate, repurchase shares in the open
market or in privately negotiated transactions at a price not above market value
or net asset value, whichever is lower at the time of purchase. In accordance
with this procedure, 1,059,600 shares of the Trust were purchased on the New
York Stock Exchange over the six-month period ended March 31, 2000.
We appreciate your ongoing support of Morgan Stanley Dean Witter Government
Income Trust and look forward to continuing to serve your investment objectives.
<TABLE>
<S> <C>
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO /s/ MITCHELL M. MERIN
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
</TABLE>
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
RESULTS OF ANNUAL MEETING (unaudited)
* * *
On December 21, 1999, an annual meeting of the Fund's shareholders was held for
the purpose of voting on two separate matters, the results of which were as
follows:
(1) ELECTION OF TRUSTEES:
<TABLE>
<S> <C>
Michael Bozic
For......................................................... 34,870,993
Withheld.................................................... 636,780
Charles A. Fiumefreddo
For......................................................... 34,892,946
Withheld.................................................... 614,827
</TABLE>
The following Trustees were not standing for reelection at this meeting:
Edwin J. Garn, Wayne E. Hedien, Manuel H. Johnson, Michael E. Nugent, Philip
J. Purcell and John L. Schroeder.
(2) RATIFICATION OF THE SELECTION OF PRICEWATERHOUSECOOPERS LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS:
<TABLE>
<S> <C>
For......................................................... 34,809,096
Against..................................................... 228,631
Abstain..................................................... 470,046
</TABLE>
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
--------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES (59.5%)
Federal Home Loan Mortgage Corp. (4.0%)
$ 2,879 12/01/18 - 02/01/19.............................. 9.50 % $ 3,011,224
6,856 08/01/09 - 08/01/20.............................. 10.00 7,240,000
4,096 08/01/14 - 05/01/19.............................. 10.50 4,445,089
------------
14,696,313
------------
Federal National Mortgage Assoc. (33.4%)
21,572 04/01/06 - 02/01/29.............................. 6.00 20,232,899
37,012 05/01/07 - 04/01/29.............................. 6.50 34,983,842
32,091 10/01/13 - 08/01/29.............................. 7.00 30,877,219
18,959 01/01/22 - 07/01/29.............................. 7.50 18,651,135
11,417 12/01/21 - 03/01/30.............................. 8.00 11,449,518
4,526 08/01/17 - 05/01/25.............................. 8.50 4,616,080
519 09/01/13 - 07/01/23.............................. 9.00 535,715
1,079 06/01/18 - 01/01/21.............................. 9.50 1,131,407
------------
122,477,815
------------
Government National Mortgage Assoc. (22.1%)
8,573 03/15/26 - 03/15/29.............................. 6.00 7,860,573
15,028 03/20/26 - 05/20/29.............................. 6.50 14,143,039
20,040 02/15/24 - 08/15/29.............................. 7.00 19,404,941
14,443 12/15/22 - 11/20/29.............................. 7.50 14,312,991
7,621 11/15/15 - 03/15/30.............................. 8.00 7,706,539
12,404 05/15/16 - 11/15/24.............................. 8.50 12,722,289
4,076 04/15/17 - 02/15/25.............................. 9.00 4,228,556
367 11/15/19 - 08/15/20.............................. 9.50 384,461
------------
80,763,389
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $222,568,659)............................. 217,937,517
------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (39.5%)
1,500 Federal Farm Credit Bank
06/17/05......................................... 5.80 1,410,600
3,085 Federal Farm Credit Bank
01/10/05......................................... 5.90 2,926,308
2,000 Federal Farm Credit Corp.
09/23/04......................................... 6.30 1,936,220
1,000 Federal Farm Credit Corp.
09/24/07......................................... 6.52 962,230
14,000 Federal Home Loan Banks
02/25/04 - 07/02/12.............................. 0.00 9,582,230
2,000 Federal Home Loan Banks
04/23/03......................................... 5.785 1,929,840
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
--------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 1,000 Federal Home Loan Banks
11/25/08......................................... 5.88 % $ 916,770
1,000 Federal Home Loan Banks
07/28/08......................................... 5.945 911,180
2,000 Federal Home Loan Banks
02/05/08......................................... 5.96 1,831,740
2,000 Federal Home Loan Banks
03/17/08......................................... 6.02 1,837,160
3,500 Federal Home Loan Banks
10/10/07......................................... 6.20 3,303,055
2,000 Federal Home Loan Banks
08/15/07......................................... 6.295 1,899,740
2,000 Federal Home Loan Mortgage Corp.
04/15/08......................................... 5.75 1,823,500
2,500 Federal National Mortgage Assoc.
02/01/04 - 08/01/04.............................. 0.00 1,898,895
2,000 Federal National Mortgage Assoc.
01/26/09......................................... 5.80 1,825,540
1,000 Federal National Mortgage Assoc.
07/30/07......................................... 6.75 967,330
103,000 Resolution Funding Corp.
10/15/01 - 10/15/07.............................. 0.00 70,627,700
2,000 U.S. Department of Housing and Urban Development
Series 1999A
08/01/11......................................... 6.16 1,843,080
7,500 U.S. Treasury Note
02/28/03 - 05/31/03.............................. 5.50 7,306,995
4,500 U.S. Treasury Note
12/31/02 - 02/15/06.............................. 5.625 4,367,565
1,000 U.S. Treasury Note
11/15/05......................................... 5.875 978,600
6,000 U.S. Treasury Note
08/15/07......................................... 6.125 5,942,880
8,500 U.S. Treasury Note
02/15/07......................................... 6.25 8,483,850
4,000 U.S. Treasury Note
08/15/05 - 02/15/10.............................. 6.50 4,083,920
1,000 U.S. Treasury Note
08/15/00......................................... 8.75 1,009,360
5,000 U.S. Treasury Strip
02/15/03......................................... 0.00 4,175,350
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Identified Cost $147,951,761)............................. 144,781,638
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
--------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENT (0.4%)
REPURCHASE AGREEMENT
$ 1,392 The Bank of New York due 04/03/00 (dated
03/31/00; proceeds $1,392,393) (a)
(Identified Cost $1,391,690).................... 6.063% $ 1,391,690
------------
TOTAL INVESTMENTS
(Identified Cost $371,912,110) (b)............... 99.4% 364,110,845
OTHER ASSETS IN EXCESS OF LIABILITIES............ 0.6 2,063,134
----- ------------
NET ASSETS....................................... 100.0% $366,173,979
===== ============
</TABLE>
---------------------
(a) Collateralized by $1,406,051 U.S. Treasury Bond 5.875% due 11/30/01 valued
at $1,419,525.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $13,781,511 and the
aggregate gross unrealized depreciation is $21,582,776, resulting in net
unrealized depreciation of $7,801,265.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $371,912,110)............................. $364,110,845
Receivable for:
Interest................................................ 2,193,814
Principal paydowns...................................... 348,150
Prepaid expenses and other assets........................... 28,477
------------
TOTAL ASSETS............................................ 366,681,286
------------
LIABILITIES:
Payable for:
Investment management fee............................... 209,963
Shares of beneficial interest repurchased............... 180,762
Accrued expenses............................................ 116,582
------------
TOTAL LIABILITIES....................................... 507,307
------------
NET ASSETS.............................................. $366,173,979
============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. $393,580,146
Net unrealized depreciation................................. (7,801,265)
Accumulated undistributed net investment income............. 460,424
Accumulated net realized loss............................... (20,065,326)
------------
NET ASSETS.............................................. $366,173,979
============
NET ASSET VALUE PER SHARE,
40,660,600 shares outstanding
(unlimited shares authorized of $.01 par value)............ $9.01
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended March 31, 2000 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $12,889,219
-----------
EXPENSES
Investment management fee................................... 1,116,444
Transfer agent fees and expenses............................ 71,017
Custodian fees.............................................. 43,713
Professional fees........................................... 33,281
Shareholder reports and notices............................. 24,878
Registration fees........................................... 21,318
Trustees' fees and expenses................................. 8,209
Other....................................................... 1,812
-----------
TOTAL EXPENSES.......................................... 1,320,672
-----------
NET INVESTMENT INCOME................................... 11,568,547
-----------
NET REALIZED AND UNREALIZED LOSS:
Net realized loss........................................... (60,665)
Net change in unrealized depreciation....................... (6,440,579)
-----------
NET LOSS................................................ (6,501,244)
-----------
NET INCREASE................................................ $ 5,067,303
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30, 1999
--------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.............................. $ 11,568,547 $ 23,885,889
Net realized loss.................................. (60,665) (32,344)
Net change in unrealized
appreciation/depreciation......................... (6,440,579) (26,647,143)
------------- ------------
NET INCREASE (DECREASE)........................ 5,067,303 (2,793,598)
Dividends from net investment income............... (11,145,040) (23,798,485)
Decrease from transactions in shares of beneficial
interest.......................................... (8,625,504) (15,560,813)
------------ ------------
NET DECREASE................................... (14,703,241) (42,152,896)
NET ASSETS:
Beginning of period................................ 380,877,220 423,030,116
------------ ------------
END OF PERIOD
(Including undistributed net investment income
of $460,424 and $36,917, respectively)......... $366,173,979 $380,877,220
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 2000 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Government Income Trust (the "Trust") is registered
under the Investment Company Act of 1940, as amended, as a diversified,
closed-end management investment company. The Trust's primary investment
objective is to provide as high a level of current income as is consistent with
prudent investment and as a secondary objective, capital appreciation. The Trust
commenced operations on February 29, 1988.
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) 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; (2) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager"), that sale or 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); (3) certain portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service 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 securities valued by
such pricing service; and (4) 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
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 2000 (unaudited) continued
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 Trust'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.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Trust 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, the Trust pays the Investment
Manager a management fee, accrued weekly and payable monthly, by applying the
annual rate of 0.60% to the Trust's weekly net assets.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales/prepayments of portfolio
securities, excluding short-term investments, for the six months ended March 31,
2000 aggregated $9,001,379 and $15,574,938, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager, is
the Trust's transfer agent. At March 31, 2000, the Trust had transfer agent fees
and expenses payable of approximately $2,100.
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 2000 (unaudited) continued
The Trust has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Trust 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, 2000
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,921. At March 31, 2000, the Trust had an accrued pension liability of
$52,432 which is included in accrued expenses in the Statement of Assets and
Liabilities.
4. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CAPITAL
PAID IN
PAR VALUE EXCESS OF
SHARES OF SHARES PAR VALUE
---------- --------- ------------
<S> <C> <C> <C>
Balance, September 30, 1998................................. 43,518,600 $435,186 $417,512,961
Treasury shares purchased and retired (weighted average
discount 7.78%)*........................................... (1,798,400) (17,984) (15,542,829)
Reclassification due to permanent book/tax differences...... -- -- (181,684)
---------- -------- ------------
Balance, September 30, 1999................................. 41,720,200 417,202 401,788,448
Treasury shares purchased and retired (weighted average
discount 9.22%)*........................................... (1,059,600) (10,596) (8,614,908)
---------- -------- ------------
Balance, March 31, 2000..................................... 40,660,600 $406,606 $393,173,540
========== ======== ============
</TABLE>
---------------------
* The Trustees have voted to retire the shares purchased.
5. DIVIDENDS
On March 31, 2000, the Trust declared the following dividends from net
investment income:
<TABLE>
<CAPTION>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
--------- ------------- --------------
<S> <C> <C>
$0.045 April 7, 2000 April 20, 2000
$0.045 May 5, 2000 May 19, 2000
$0.045 June 9, 2000 June 23, 2000
</TABLE>
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 2000 (unaudited) continued
6. FEDERAL INCOME TAX STATUS
At September 30, 1999, the Trust had a net capital loss carryover of
approximately $19,961,000 to offset future capital gains to the extent provided
by regulations, available through September 30 of the following years:
<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
--------------------------------------------------
2002 2003 2004 2006
--------------------- -------- -------- ----
<S> <C> <C> <C>
$8,299 $9,638 $2,019 $5
====== ====== ====== ==
</TABLE>
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Trust's next
taxable year. The Trust incurred and will elect to defer net capital losses of
approximately $44,000 during fiscal 1999.
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED SEPTEMBER 30*
MONTHS ENDED ----------------------------------------------------
MARCH 31, 2000* 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA:
Net asset value, beginning of period................. $ 9.13 $ 9.72 $ 9.32 $ 9.08 $ 9.17 $ 8.69
---------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income............................... 0.28 0.56 0.59 0.61 0.60 0.58
Net realized and unrealized gain (loss)............. (0.15) (0.62) 0.37 0.19 (0.14) 0.43
---------- -------- -------- -------- -------- --------
Total income (loss) from investment operations....... 0.13 (0.06) 0.96 0.80 0.46 1.01
---------- -------- -------- -------- -------- --------
Less dividends from net investment income............ (0.27) (0.56) (0.60) (0.60) (0.60) (0.60)
---------- -------- -------- -------- -------- --------
Anti-dilutive effect of acquiring treasury shares.... 0.02 0.03 0.04 0.04 0.05 0.07
---------- -------- -------- -------- -------- --------
Net asset value, end of period....................... $ 9.01 $ 9.13 $ 9.72 $ 9.32 $ 9.08 $ 9.17
========== ======== ======== ======== ======== ========
Market value, end of period.......................... $ 8.063 $ 8.25 $ 9.00 $ 8.438 $ 8.25 $ 8.25
========== ======== ======== ======== ======== ========
TOTAL RETURN+........................................ 1.01%(1) (2.24)% 14.26% 9.86% 7.31% 12.97%
RATIOS TO AVERAGE NET ASSETS:
Expenses............................................. 0.71%(2) 0.71% 0.70% 0.73% 0.73% 0.71%
Net investment income................................ 6.22%(2) 5.98% 6.27% 6.60% 6.56% 6.50%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands.............. $366,174 $380,877 $423,030 $429,764 $439,896 $475,471
Portfolio turnover rate.............................. 2%(1) 19% 16% 19% 21% 25%
</TABLE>
---------------------
* The per share amounts were computed using an average number of shares
outstanding during the period.
+ Total return is based upon the current market value on the last day of each
period reported. Dividends and distributions are assumed to be reinvested at
the prices obtained under the Trust's dividend reinvestment plan. Total
return does not reflect brokerage commissions.
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE> 15
(This Page Intentionally Left Blank)
<PAGE> 16
TRUSTEES
----------------------------------
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
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
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
Rajesh K. Gupta
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
----------------------------------
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
----------------------------------
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
----------------------------------
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Trust without examination by the independent accountants and accordingly they
do not express an opinion thereon.
MORGAN STANLEY
DEAN WITTER
GOVERNMENT
INCOME TRUST
Semiannual Report
March 31, 2000
