<PAGE> 1
DEAN WITTER STRATEGIST FUND Two World Trade Center, New York, New York 10048
LETTER TO THE SHAREHOLDERS January 31, 1998
DEAR SHAREHOLDER:
Following is the semiannual report to the shareholders of Dean Witter Strategist
Fund, for the six-month period ended January 31, 1998. This report reviews the
Fund's most recent performance and an analysis of its portfolio.
FUND PERFORMANCE
For the six-month period ended January 31, 1998, the Fund's Class B shares
posted a total return of -0.11 percent, versus 2.94 percent, 3.56 percent, 5.12
percent and 2.61 percent, respectively for the Lipper Flexible Portfolio Funds
Index, the Standard & Poor's 500 Composite Stock Index, the Lehman Brothers
Government/Corporate Bond Index and the Six Month U.S. Treasury Bill. Since
their inception on July 28, 1997, through January 31, 1998, the Fund's Class A,
C and D shares had total returns of 0.21 percent, -0.14 percent and 0.34
percent, respectively. Performance of the Fund's four share classes varies
because of differing charges and expenses.
INVESTMENT ANALYSIS
The Fund's underperformance for the period under review, August 1997 to January
1998, was due to our asset allocation which favored stocks and underweighted
bonds. For the six-month period, Dean Witter Strategist Fund maintained an asset
allocation target of 70 percent equities, 20 percent U.S. government and
corporate bonds and 10 percent cash equivalents. This was a change from the
first half of 1997 when the Fund was positioned at roughly a 50 percent/50
percent stock and bond/cash blend. The move was made because of our view that
corporate earnings growth would continue at an above average pace, therefore
leading us to take a more aggressive approach toward the equity markets. The
untimely currency crises in Indonesia, Singapore, Malaysia, and Thailand had the
compounding negative effect of pummelling technology stocks and causing a rapid
and significant "flight-to-quality" bond rally.
While the outperformance of bonds tied to the Asian Pacific crisis may have
affected our strategy during the second half of the year, January 1998 has been
a good month for the equity market. We would
<PAGE> 2
DEAN WITTER STRATEGIST FUND
LETTER TO THE SHAREHOLDERS January 31, 1998, continued
expect this trend to continue through the first quarter of 1998, at the very
least, and provide improved returns to our shareholders based on our current
allocation target.
THE PORTFOLIO
Concerning the Fund's specific investments, the equity portion of the portfolio
features an emphasis on the U.S. consumer, who is enjoying unprecedented
financial liquidity tied to low unemployment and declining mortgage rates. The
Fund holds a number of retailers (Pier 1 Imports, Inc. and Kmart Corp.),
consumer products companies (Colgate-Palmolive Co. and Kellogg Co.) and leisure
time service providers (Walt Disney Co.). Also, the Fund holds significant
exposures to technology, financial services and energy stocks.
The fixed-income portion of the portfolio is well diversified among both
government and corporate issuers, varying maturities, interest rates and
duration. At period end, the Fund's bond portfolio, 55 issues in all, had an
average maturity of 9 1/4 years, an average yield of 6 1/4 percent, and an
average duration of 5 1/3 years. (Duration is a ratio which measures a bond
portfolio's sensitivity to general interest rate movements.)
LOOKING AHEAD
In our view, equity valuations continue to be quite attractive based on earnings
growth and subdued inflation, especially in light of the recent decline in
interest rates. As rates reach lower levels, the total return potential of
fixed-income investments diminishes as well, making other investment classes
more attractive. In our opinion, the near term view favors a continued over
weighting of equity investments versus both bonds and cash.
Should the equity market continue to outperform other asset classes and bond
yields remain stable or slightly higher, we will gradually seek opportunities to
lower our exposure to the stock market and raise our weighting to bonds and
perhaps cash, protecting profits while continuing to seek long-term total
returns. With the U.S. economy enjoying three percent growth, low unemployment,
subdued inflation, and a federal budget surplus just around the corner, both
stocks and bonds continue to look attractive in the nearer term.
We appreciate your continued support and interest in Dean Witter Strategist Fund
and look forward to serving your investment needs in the future.
Sincerely,
/S/ CHARLES A. FIUMEFREDDO
CHARLES A. FIUMEFREDDO
Chairman of the Board
<PAGE> 3
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS January 31, 1998 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------
<S> <C>
COMMON STOCKS (68.1%)
Aerospace & Defense (3.0%)
320,000 General Motors Corp. (Class
H)........................... $ 11,080,000
194,000 Honeywell, Inc. .............. 13,592,125
101,848 Raytheon Co. (Class A)........ 5,206,979
200,000 Thiokol Corp. ................ 17,250,000
--------------
47,129,104
--------------
Airlines (0.7%)
250,000 Continental Airlines, Inc.
(Class B)*................... 11,593,750
--------------
Aluminum (1.0%)
200,000 Aluminum Co. of America....... 15,275,000
--------------
Appliances & Household Durables (0.8%)
320,000 Maytag Corp. ................. 12,300,000
--------------
Automotive (2.1%)
440,000 Chrysler Corp. ............... 15,317,500
350,000 Ford Motor Co. ............... 17,850,000
--------------
33,167,500
--------------
Banks (2.9%)
220,000 NationsBank Corp. ............ 13,200,000
240,000 Washington Mutual, Inc. ...... 15,420,000
58,000 Wells Fargo & Co. ............ 17,922,000
--------------
46,542,000
--------------
Banks - Money Center (1.4%)
100,000 Chase Manhattan Corp. ........ 10,718,750
102,000 Citicorp...................... 12,138,000
--------------
22,856,750
--------------
Beverages - Soft Drinks (0.8%)
327,800 PepsiCo, Inc. ................ 11,821,287
--------------
Biotechnology (0.5%)
400,000 BioChem Pharma, Inc.
(Canada)*.................... 8,150,000
--------------
Cable & Telecommunications (0.9%)
500,000 U.S. West Media Group,
Inc.*........................ 14,843,750
--------------
Chemicals (2.9%)
120,000 Dow Chemical Co. ............. 10,800,000
220,000 Du Pont (E.I.) de Nemours &
Co., Inc. ................... 12,457,500
380,000 Georgia Gulf Corp. ........... 12,397,500
220,000 Monsanto Co. ................. 10,436,250
--------------
46,091,250
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------
<S> <C>
Communications Equipment (2.4%)
200,000 Bay Networks, Inc.*........... $ 5,437,500
150,000 Cisco Systems, Inc.*.......... 9,459,375
100,000 Lucent Technologies, Inc. .... 8,850,000
270,000 Tellabs, Inc.*................ 13,803,750
--------------
37,550,625
--------------
Computer Software (1.1%)
50,000 Microsoft Corp.*.............. 7,459,375
180,000 Network Associates, Inc.*..... 9,720,000
--------------
17,179,375
--------------
Computer Software & Services (0.7%)
220,000 HBO & Co. .................... 11,508,750
--------------
Computers (3.7%)
130,000 Dell Computer Corp.*.......... 12,926,875
329,250 Diebold, Inc. ................ 16,380,187
400,000 Gateway 2000, Inc.*........... 15,075,000
300,000 Sun Microsystems, Inc.*....... 14,381,250
--------------
58,763,312
--------------
Electric - Major (2.3%)
258,000 Emerson Electric Co. ......... 15,609,000
258,000 General Electric Co. ......... 19,995,000
--------------
35,604,000
--------------
Engineering & Construction (0.2%)
100,000 Fluor Corp. .................. 3,768,750
--------------
Financial Services (3.4%)
188,000 American Express Co. ......... 15,733,250
290,000 Fannie Mae.................... 17,907,500
399,999 Travelers Group, Inc. ........ 19,799,950
--------------
53,440,700
--------------
Foods (1.6%)
150,000 General Mills, Inc. .......... 11,165,625
300,000 Kellogg Co. .................. 13,856,250
--------------
25,021,875
--------------
Healthcare - HMOs (0.4%)
325,000 Humana, Inc.*................. 6,520,313
--------------
Household Products (1.2%)
253,400 Colgate-Palmolive Co. ........ 18,561,550
--------------
Insurance (4.8%)
188,000 Ace, Ltd. (Bermuda)........... 17,495,750
142,500 American International Group,
Inc. ........................ 15,719,531
200,000 Chubb Corp. .................. 15,187,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS January 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------
<C> <S> <C>
260,000 Conseco, Inc. ................ $ 11,895,000
350,000 Equitable Companies, Inc. .... 16,100,000
--------------
76,397,781
--------------
Internet (0.7%)
120,000 America Online, Inc.*......... 11,482,500
--------------
Leisure (0.8%)
120,000 Walt Disney Co. .............. 12,787,500
--------------
Media Group (0.5%)
100,000 Clear Channel Communications,
Inc.*........................ 7,700,000
--------------
Office Equipment & Supplies (0.3%)
160,000 IKON Office Solutions,
Inc. ........................ 5,040,000
--------------
Oil - Domestic (1.7%)
260,000 Amerada Hess Corp. ........... 14,218,750
172,000 Atlantic Richfield Co. ....... 12,792,500
--------------
27,011,250
--------------
Oil - Integrated - International (4.2%)
190,000 Chevron Corp. ................ 14,214,375
240,000 Exxon Corp. .................. 14,235,000
198,000 Mobil Corp. .................. 13,488,750
200,000 Royal Dutch Petroleum Co.
(ADR) (Netherlands).......... 10,250,000
260,000 Texaco, Inc. ................. 13,536,250
--------------
65,724,375
--------------
Paper Products (1.5%)
210,000 Bowater, Inc. ................ 10,290,000
270,000 Champion International
Corp. ....................... 13,820,625
--------------
24,110,625
--------------
Pharmaceuticals (5.0%)
160,000 Abbott Laboratories........... 11,330,000
208,400 American Home Products
Corp. ....................... 19,889,175
194,744 Johnson & Johnson............. 13,035,677
302,000 Lilly (Eli) & Co. ............ 20,385,000
100,000 Warner-Lambert Co. ........... 15,050,000
--------------
79,689,852
--------------
Railroad Equipment (0.6%)
200,000 Trinity Industries, Inc. ..... 9,050,000
--------------
Retail - Department Stores (1.4%)
1,150,000 Kmart Corp.*.................. 12,650,000
176,000 May Department Stores Co. .... 9,251,000
--------------
21,901,000
--------------
Retail - Specialty (5.6%)
290,000 Bed Bath & Beyond, Inc.*...... 11,491,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------
<C> <S> <C>
350,000 Costco Companies, Inc.*....... $ 15,181,250
120,000 Eagle Hardware & Garden,
Inc.*........................ 2,235,000
216,000 Home Depot, Inc. ............. 13,027,500
200,000 Payless ShoeSource, Inc.*..... 13,012,500
550,000 Pep Boys-Manny, Moe & Jack.... 12,031,250
950,000 Pier 1 Imports, Inc. ......... 22,206,250
--------------
89,185,000
--------------
Retail - Specialty Apparel (1.4%)
465,000 Gap, Inc. (The)............... 18,164,063
150,000 Wet Seal, Inc. (Class A)*..... 4,584,375
--------------
22,748,438
--------------
Savings & Loan Associations (0.9%)
170,000 Golden West Financial
Corp. ....................... 14,354,375
--------------
Semiconductors (1.0%)
200,000 Intel Corp. .................. 16,200,000
--------------
Steel & Iron (0.5%)
180,000 Nucor Corp. .................. 8,572,500
--------------
Telecommunications (0.3%)
150,000 Winstar Communications,
Inc.*........................ 4,903,125
--------------
Tobacco (1.0%)
390,000 Philip Morris Companies,
Inc. ........................ 16,185,000
--------------
Transportation - Miscellaneous (0.7%)
150,000 Airborne Freight Corp. ....... 10,668,750
--------------
Truckers (0.9%)
550,000 Yellow Corp.*................. 14,231,250
--------------
Wholesale Distributor (0.3%)
250,000 CHS Electronics, Inc.*........ 5,000,000
--------------
TOTAL COMMON STOCKS
(Identified Cost
$770,393,889)................. 1,080,632,962
--------------
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ----------
<C> <S> <C>
CORPORATE BONDS (10.0%)
Aerospace & Defense (0.3%)
$ 4,000 Northrop-Grumman Corp.
7.875% due 03/01/26.......... 4,482,280
--------------
Banks (2.7%)
3,800 Central Fidelity Capital I
Inc. (Series A)
6.594%+ due 04/15/27......... 3,873,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS January 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------
<S> <C>
$ 6,900 Centura Capital Trust
I - 144A**
8.845% due 06/01/27.......... $ 7,693,500
5,000 Compass Trust I (Series A)
8.23% due 01/15/27........... 5,368,050
4,900 MBNA Capital I (Series A)
8.278% due 12/01/26.......... 5,110,112
5,000 North Fork Capital Trust I
8.70% due 12/15/26........... 5,468,750
3,900 Norwest Financial, Inc.
6.20% due 02/15/01........... 3,944,460
7,043 St. Paul Bancorp, Inc.
7.125% due 02/15/04.......... 7,275,278
4,000 US Bank N.A.
6.50% due 02/01/08........... 4,055,000
--------------
42,788,300
--------------
Brokerage (1.2%)
3,900 Bear Stearns Co., Inc.
6.75% due 12/15/07........... 3,966,924
4,000 Lehman Brothers Holdings, Inc.
6.20% due 01/15/02........... 3,998,160
6,000 Paine Webber Group, Inc.
6.79% due 10/04/04........... 6,175,560
5,000 Salomon, Inc.
6.65% due 07/15/01........... 5,107,750
--------------
19,248,394
--------------
Cable & Telecommunications (1.3%)
5,000 Continental Cablevision, Inc.
9.50% due 08/01/13........... 5,926,900
5,000 Cox Enterprises, Inc. - 144A**
6.25% due 08/26/99........... 5,025,000
4,000 TCI Communications, Inc.
8.75% due 08/01/15........... 4,621,200
3,900 Time Warner Entertainment Co.
8.375% due 03/15/23.......... 4,459,689
--------------
20,032,789
--------------
Chemicals - Specialty (0.3%)
4,000 Solutia, Inc.
7.375% due 10/15/27.......... 4,177,520
--------------
Electric Power (0.1%)
1,500 Texas Utilities Co. (Class A) - 144A**
6.20% due 10/01/02............ 1,524,375
--------------
Financial Services (0.8%)
5,000 Advanta Corp.
6.384% due 08/07/98.......... 4,979,200
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------
<S> <C>
$ 3,500 Advanta Corp.
7.28% due 07/30/01........... $ 3,338,090
4,000 MBIA Inc.
7.15% due 07/15/27........... 4,231,400
--------------
12,548,690
--------------
Insurance (1.4%)
5,000 Arkwright CSN Trust - 144A**
9.625% due 08/15/26.......... 5,931,250
7,000 Markel Capital Trust I (Series
B)
8.71% due 01/01/46........... 7,749,560
7,800 Orion Capital Trust I
8.73% due 01/01/37........... 8,443,500
--------------
22,124,310
--------------
Natural Gas (0.2%)
3,000 Apache Corp.
7.00% due 02/01/18........... 3,011,250
--------------
Oil - Integrated - Domestic (0.3%)
5,000 Mitchell Energy & Development
Corp.
6.75% due 02/15/04........... 5,027,800
--------------
Real Estate (0.3%)
5,000 Crescent Real Estate Equities
Co. - 144A**
6.625% due 09/15/02.......... 4,959,950
--------------
Recreation (0.3%)
3,900 Carnival Cruise Lines (Panama)
7.20% due 10/01/23........... 4,089,072
--------------
Retail - General Merchandise (0.3%)
5,000 ShopKo Stores, Inc.
9.00% due 11/15/04........... 5,651,200
--------------
Utilities - Telephone (0.3%)
2,000 GTE Corp.
8.75% due 11/01/21........... 2,416,080
2,000 GTE Florida, Inc.
6.86% due 02/01/28........... 2,017,500
--------------
4,433,580
--------------
Waste Management (0.2%)
4,000 USA Waste Services, Inc.
6.50% due 12/15/02........... 4,060,280
--------------
TOTAL CORPORATE BONDS
(Identified Cost
$153,682,514)................ 158,159,790
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 6
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS January 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------
<S> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS (10.4%)
$ 4,000 Fannie Mae
5.25% due 01/15/03........... $ 3,942,080
6,000 Federal Home Loan Mortgage
Corp.
6.943% due 03/21/07.......... 6,458,460
240 Federal Home Loan Mortgage
Corp.
8.50% due 07/01/02........... 246,941
123 Federal Home Loan Mortgage
Corp.
9.00% due 08/01/02........... 126,639
4,000 U.S. Treasury Bond
6.375% due 08/15/27.......... 4,295,200
3,500 U.S. Treasury Bond
6.50% due 11/15/26........... 3,805,200
14,900 U.S. Treasury Bond
6.625% due 02/15/27.......... 16,467,033
7,000 U.S. Treasury Note
5.125% due 02/28/98.......... 6,996,850
1,900 U.S. Treasury Note
5.625% due 11/30/00.......... 1,913,129
5,000 U.S. Treasury Note
5.625% due 02/28/01.......... 5,036,750
28,000 U.S. Treasury Note
5.875% due 04/30/98.......... 28,035,000
5,000 U.S. Treasury Note
5.875% due 02/28/99.......... 5,030,750
3,000 U.S. Treasury Note
5.875% due 11/30/01.......... 3,047,760
5,000 U.S. Treasury Note
6.00% due 08/15/99........... 5,050,200
4,000 U.S. Treasury Note
6.25% due 02/15/03........... 4,141,440
5,000 U.S. Treasury Note
6.375% due 05/15/99.......... 5,064,550
12,050 U.S. Treasury Note
6.50% due 04/30/99........... 12,223,400
5,000 U.S. Treasury Note
6.75% due 04/30/00........... 5,144,700
6,900 U.S. Treasury Note
6.875% due 08/31/99.......... 7,060,770
23,900 U.S. Treasury Note
6.875% due 05/15/06.......... 25,963,526
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------
<S> <C>
$ 6,900 U.S. Treasury Note
7.25% due 05/15/04........... $ 7,546,599
7,000 U.S. Treasury Note
7.50% due 11/15/01........... 7,495,040
--------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(Identified Cost
$162,345,731)................ 165,092,017
--------------
SHORT-TERM INVESTMENTS (11.5%)
U.S. GOVERNMENT AGENCIES (a) (11.5%)
182,000 Federal Home Loan Mortgage
Corp.
5.41% - 5.57% due 02/02/98 -
02/12/98
(Amortized Cost
$181,889,432)................ 181,889,432
--------------
REPURCHASE AGREEMENT (0.0%)
725 The Bank of New York
5.375% due 02/02/98 (dated
01/30/98; proceeds $725,316)
(b)
(Identified Cost $724,991)... 724,991
--------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost
$182,614,423)................ 182,614,423
--------------
TOTAL INVESTMENTS
(Identified Cost $1,269,036,557)
(c)................................. 100.0% 1,586,499,192
OTHER ASSETS IN EXCESS OF
LIABILITIES......................... 0.0% 114,314
------ --------------
NET ASSETS.......................... 100.0% $1,586,613,506
====== ==============
</TABLE>
- ---------------------
<TABLE>
<C> <S>
ADR American Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional
investors.
+ Floating rate security. Coupon rate shown is the
rate in effect at January 31, 1998.
(a) Securities were purchased on a discount basis. The
interest rates shown have been adjusted to reflect
a money market equivalent yield.
(b) Collateralized by $718,890 U.S. Treasury Note
6.75% due 05/31/99 valued at $739,491.
(c) The aggregate cost for federal income tax purposes
approximates identified cost. The aggregate gross
unrealized appreciation is $330,273,992 and the
aggregate gross unrealized depreciation is
$12,811,357, resulting in net unrealized
appreciation of $317,462,635.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 7
DEAN WITTER STRATEGIST FUND
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1998 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $1,269,036,557)........................... $1,586,499,192
Receivable for:
Interest................................................ 5,759,047
Investments sold........................................ 3,273,139
Shares of beneficial interest sold...................... 1,977,866
Dividends............................................... 764,335
Prepaid expenses and other assets........................... 137,035
--------------
TOTAL ASSETS............................................ 1,598,410,614
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 8,962,672
Plan of distribution fee................................ 1,183,207
Shares of beneficial interest repurchased............... 757,021
Investment management fee............................... 725,898
Accrued expenses and other payables......................... 168,310
--------------
TOTAL LIABILITIES....................................... 11,797,108
--------------
NET ASSETS.............................................. $1,586,613,506
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. $1,243,092,167
Net unrealized appreciation................................. 317,462,635
Accumulated undistributed net investment income............. 2,601,696
Accumulated undistributed net realized gain................. 23,457,008
--------------
NET ASSETS.............................................. $1,586,613,506
==============
CLASS A SHARES:
Net Assets.................................................. $19,436,107
Shares Outstanding (unlimited authorized, $.01 par value)... 1,077,245
NET ASSET VALUE PER SHARE............................... $18.04
==============
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net asset value)........ $19.04
==============
CLASS B SHARES:
Net Assets.................................................. $1,507,103,949
Shares Outstanding (unlimited authorized, $.01 par value)... 83,545,891
NET ASSET VALUE PER SHARE............................... $18.04
==============
CLASS C SHARES:
Net Assets.................................................. $3,006,533
Shares Outstanding (unlimited authorized, $.01 par value)... 166,851
NET ASSET VALUE PER SHARE............................... $18.02
==============
CLASS D SHARES:
Net Assets.................................................. $57,066,917
Shares Outstanding (unlimited authorized, $.01 par value)... 3,160,930
NET ASSET VALUE PER SHARE............................... $18.05
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 8
DEAN WITTER STRATEGIST FUND
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended January 31, 1998 (unaudited)
NET INVESTMENT INCOME:
INCOME
Interest.................................................... $ 16,169,259
Dividends (net of $19,549 foreign withholding tax).......... 6,199,131
------------
TOTAL INCOME............................................ 22,368,390
------------
EXPENSES
Plan of distribution fee (Class A shares)................... 16,479
Plan of distribution fee (Class B shares)................... 6,853,837
Plan of distribution fee (Class C shares)................... 9,495
Investment management fee................................... 4,326,157
Transfer agent fees and expenses............................ 696,820
Registration fees........................................... 59,990
Shareholder reports and notices............................. 49,895
Custodian fees.............................................. 49,808
Professional fees........................................... 31,137
Trustees' fees and expenses................................. 9,146
Other....................................................... 9,499
------------
TOTAL EXPENSES.......................................... 12,112,263
------------
NET INVESTMENT INCOME................................... 10,256,127
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain........................................... 42,418,144
Net change in unrealized appreciation....................... (54,670,585)
------------
NET LOSS................................................ (12,252,441)
------------
NET DECREASE................................................ $ (1,996,314)
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 9
DEAN WITTER STRATEGIST FUND
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JANUARY 31, 1998 JULY 31, 1997*
- ---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................... $ 10,256,127 $ 32,078,185
Net realized gain................................... 42,418,144 52,266,640
Net change in unrealized appreciation............... (54,670,585) 285,799,377
-------------- --------------
NET INCREASE (DECREASE)......................... (1,996,314) 370,144,202
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.................................. (201,991) --
Class B shares.................................. (14,137,352) (28,975,735)
Class C shares.................................. (21,268) --
Class D shares.................................. (742,510) --
Net realized gain
Class A shares.................................. (478,126) --
Class B shares.................................. (41,034,286) (109,339,056)
Class C shares.................................. (70,302) --
Class D shares.................................. (1,520,396) --
-------------- --------------
TOTAL DIVIDENDS AND DISTRIBUTIONS............... (58,206,231) (138,314,791)
-------------- --------------
Net increase from transactions in shares of
beneficial interest................................ 47,804,904 107,876,963
-------------- --------------
NET INCREASE (DECREASE)......................... (12,397,641) 339,706,374
NET ASSETS:
Beginning of period................................. 1,599,011,147 1,259,304,773
-------------- --------------
END OF PERIOD
(Including undistributed net investment income
of $2,601,696 and $7,448,690, respectively)..... $1,586,613,506 $1,599,011,147
============== ==============
</TABLE>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 10
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Strategist Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a non-diversified, open-end
management investment company. The Fund's investment objective is to maximize
the total return of its investments. The Fund seeks to achieve its objective by
actively allocating its assets among major asset categories of equity and
fixed-income securities and money market instruments. The Fund was organized as
a Massachusetts business trust on August 5, 1988 and commenced operations on
October 31, 1988. On July 28, 1997, the Fund commenced offering three additional
classes of shares, with the then current shares, other than shares which were
purchased prior to November 8, 1989 (and with respect to such shares, certain
shares acquired through reinvestment of dividends and capital gains
distributions (collectively the "Old Shares")) and shares held by certain
employee benefit plans established by Dean Witter Reynolds Inc. and its
affiliate, SPS Transaction Services, Inc., designated as Class B shares. The Old
Shares and shares held by those employee benefit plans prior to July 28, 1997
have been designated Class D 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 securities are traded on more than one exchange; the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted 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
<PAGE> 11
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited) continued
readily available, including circumstances under which it is determined by Dean
Witter InterCapital, 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); (4) certain of the Fund's
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 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. Dividend
income and other distributions are recorded on the ex- dividend date. 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 the
income is earned or expenses and realized and unrealized gains and losses are
incurred. 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
<PAGE> 12
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited) continued
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 Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.60% to the portion of daily net assets not exceeding $500
million; 0.55% to the portion of daily net assets exceeding $500 million but not
exceeding $1 billion; 0.50% to the portion of daily net assets exceeding $1
billion but not exceeding $1.5 billion; and 0.475% to the portion of daily net
assets exceeding $1.5 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 -- up to 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
implementation of the Plan on November 8, 1989 (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 implementation of
the Plan 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 -- up
to 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
<PAGE> 13
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited) continued
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 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 $36,818,858 at January 31, 1998.
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 six months ended January 31, 1998, 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 six months ended January 31,
1998, it received contingent deferred sales charges from certain redemptions of
the Fund's Class B shares and Class C shares of $696,941 and $1,647,
respectively and received $43,507 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.
<PAGE> 14
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited) continued
4. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JANUARY 31, 1998 JULY 31, 1997+*
-------------------------- ---------------------------
(unaudited)
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold....................................................... 1,236,257 $ 22,588,797 4,187 $ 77,553
Reinvestment of dividends and distributions................ 28,094 497,622 -- --
Redeemed................................................... (191,293) (3,523,127) -- --
---------- ------------- ----------- -------------
Net increase - Class A..................................... 1,073,058 19,563,292 4,187 77,553
---------- ------------- ----------- -------------
CLASS B SHARES
Sold....................................................... 6,916,167 126,174,847 21,462,833 362,673,259
Reinvestment of dividends and distributions................ 2,797,729 49,822,992 7,689,886 125,001,968
Redeemed................................................... (8,336,622) (151,930,300) (22,487,425) (380,152,637)
---------- ------------- ----------- -------------
Net increase - Class B..................................... 1,377,274 24,067,539 6,665,294 107,522,590
---------- ------------- ----------- -------------
CLASS C SHARES
Sold....................................................... 175,502 3,230,191 6,103 112,493
Reinvestment of dividends and distributions................ 4,761 84,506 -- --
Redeemed................................................... (19,515) (346,551) -- --
---------- ------------- ----------- -------------
Net increase - Class C..................................... 160,748 2,968,146 6,103 112,493
---------- ------------- ----------- -------------
CLASS D SHARES
Sold....................................................... 251,511 4,558,484 10,440 195,743
Reinvestment of dividends and distributions................ 114,296 2,038,084 -- --
Redeemed................................................... (294,209) (5,390,641) (1,699) (31,416)
---------- ------------- ----------- -------------
Net increase - Class D..................................... 71,598 1,205,927 8,741 164,327
---------- ------------- ----------- -------------
Net increase in Fund....................................... 2,682,678 $ 47,804,904 6,684,325 $ 107,876,963
========== ============= =========== =============
</TABLE>
- ---------------------
+ On July 28, 1997, 3,080,591 shares representing $56,682,871 were transferred
to Class D.
* For Class A, C and D, for the period July 28, 1997 (issue date) through July
31, 1997.
5. 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 January
31, 1998 aggregated $624,873,316 and $635,625,834, respectively. Included in the
aforementioned are purchases and sales/prepayments of U.S. Government securities
of $158,849,294 and $109,547,739, respectively.
For the same period, the Fund incurred brokerage commissions with DWR of
$54,430, for portfolio transactions executed on behalf of the Fund.
<PAGE> 15
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS January 31, 1998 (unaudited) continued
For the same period, the Fund incurred brokerage commissions with Morgan Stanley
& Co. Inc., an affiliate of the Investment Manager, of $59,670, 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 January 31, 1998, the Fund had transfer agent
fees and expenses payable of approximately $20,000.
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 January 31, 1998
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,072. At January 31, 1998, the Fund had an accrued pension liability of
$86,403 which is included in accrued expenses in the Statement of Assets and
Liabilities.
6. FEDERAL INCOME TAX STATUS
At July 31, 1997, the Fund had temporary book/tax differences which were
primarily attributable to capital loss deferrals on wash sales.
<PAGE> 16
DEAN WITTER STRATEGIST FUND
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 JULY 31
MONTHS ENDED ----------------------------------------------------
JANUARY 31, 1998++ 1997*++ 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period............... $18.75 $16.02 $15.87 $14.43 $14.59 $14.39
------ ------ ------ ------ ------ ------
Net investment income.............................. 0.12 0.39 0.30 0.34 0.30 0.26
Net realized and unrealized gain (loss)............ (0.15) 4.10 1.43 1.86 0.22 0.81
------ ------ ------ ------ ------ ------
Total from investment operations................... (0.03) 4.49 1.73 2.20 0.52 1.07
------ ------ ------ ------ ------ ------
Less dividends and distributions from:
Net investment income........................... (0.17) (0.36) (0.32) (0.29) (0.26) (0.31)
Net realized gain............................... (0.51) (1.40) (1.26) (0.47) (0.42) (0.56)
------ ------ ------ ------ ------ ------
Total dividends and distributions.................. (0.68) (1.76) (1.58) (0.76) (0.68) (0.87)
------ ------ ------ ------ ------ ------
Net asset value, end of period..................... $18.04 $18.75 $16.02 $15.87 $14.43 $14.59
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN+........................... (0.11)%(1) 29.73% 11.47% 16.05% 3.53% 7.59%
RATIOS TO AVERAGE NET ASSETS:
Expenses........................................... 1.57%(2) 1.56% 1.58% 1.63% 1.62% 1.62%
Net investment income.............................. 1.26%(2) 2.29% 1.88% 2.35% 2.03% 1.90%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions............. $1,507 $1,541 $1,259 $878 $806 $783
Portfolio turnover rate............................ 46%(1) 158% 174% 179% 90% 98%
Average commission rate paid....................... $0.0571 $0.0595 $0.0597 -- -- --
</TABLE>
- ---------------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were purchased
prior to November 8, 1989 (and with respect to such shares, certain shares
acquired through reinvestment of dividends and capital gains distributions
(collectively the "Old Shares")) and shares held by certain employee benefit
plans established by Dean Witter Reynolds Inc., and its affiliate, SPS
Transaction Services, Inc., have been designated Class B shares. The Old
Shares and shares held by those employee benefit plans prior to July 28,
1997 have been designated Class D 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.
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 17
DEAN WITTER STRATEGIST FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JULY 28, 1997*
MONTHS ENDED THROUGH
JANUARY 31, 1998++ JULY 31, 1997++
- ---------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $18.75 $18.40
------ ------
Net investment income....................................... 0.17 0.01
Net realized and unrealized gain (loss)..................... (0.14) 0.34
------ ------
Total from investment operations............................ 0.03 0.35
------ ------
Less dividends and distributions from:
Net investment income.................................... (0.23) --
Net realized gain........................................ (0.51) --
------ ------
Total dividends and distributions........................... (0.74) --
------ ------
Net asset value, end of period.............................. $18.04 $18.75
====== ======
TOTAL INVESTMENT RETURN+.................................... 0.21%(1) 1.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.93%(2) 0.92%(2)
Net investment income....................................... 1.91%(2) 5.06%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $19,436 $79
Portfolio turnover rate..................................... 46%(1) 158%
Average commission rate paid................................ $0.0571 $0.0595
CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $18.75 $18.40
------ ------
Net investment income....................................... 0.11 0.01
Net realized and unrealized gain (loss)..................... (0.14) 0.34
------ ------
Total from investment operations............................ (0.03) 0.35
------ ------
Less dividends and distributions from:
Net investment income.................................... (0.19) --
Net realized gain........................................ (0.51) --
------ ------
Total dividends and distributions........................... (0.70) --
------ ------
Net asset value, end of period.............................. $18.02 $18.75
====== ======
TOTAL INVESTMENT RETURN+.................................... (0.14)%(1) 1.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.67%(2) 1.67%(2)
Net investment income....................................... 1.15%(2) 4.38%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $3,007 $114
Portfolio turnover rate..................................... 46%(1) 158%
Average commission rate paid................................ $0.0571 $0.0595
</TABLE>
- ---------------------
* 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.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 18
DEAN WITTER STRATEGIST FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JULY 28, 1997*
MONTHS ENDED THROUGH
JANUARY 31, 1998++ JULY 31, 1997++
- ---------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
CLASS D SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 18.75 $ 18.40
------- -------
Net investment income....................................... 0.20 0.01
Net realized and unrealized gain (loss)..................... (0.14) 0.34
------- -------
Total from investment operations............................ 0.06 0.35
------- -------
Less dividends and distributions from:
Net investment income.................................... (0.25) --
Net realized gain........................................ (0.51) --
------- -------
Total dividends and distributions........................... (0.76) --
------- -------
Net asset value, end of period.............................. $ 18.05 $ 18.75
======= =======
TOTAL INVESTMENT RETURN+.................................... 0.34%(1) 1.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.66%(2) 0.67%(2)
Net investment income....................................... 2.17%(2) 5.40%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $57,067 $57,938
Portfolio turnover rate..................................... 46%(1) 158%
Average commission rate paid................................ $0.0571 $0.0595
</TABLE>
- ---------------------
* The date shares were first issued. Shareholders who held shares of the Fund
prior to July 28, 1997 (the date the Fund converted to a multiple class
share structure) should refer to the Financial Highlights of Class B to
obtain the historical per share data and ratio information of their
shares.
++ 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.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 19
(This Page Intentionally Left Blank)
<PAGE> 20
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
Mark A. Bavoso
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
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
STRATEGIST FUND
[GRAPHIC]
SEMIANNUAL REPORT
JANUARY 31, 1998
