<PAGE> 1
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST Two World Trade Center
LETTER TO THE SHAREHOLDERS November 30, 1999 New York, New York 10048
DEAR SHAREHOLDER:
The U.S. economy, led by consumer demand, has continued to experience robust
growth this year. As a result, the fixed-income markets anticipated that the
Federal Reserve Board would blunt the risk of inflation by taking back the
liquidity it provided during last year's international economic crises. Between
June and November 1999, the Fed changed monetary policy and, in three separate
moves, raised the federal-funds rate a total of 75 basis points, to 5.50
percent. By the end of November, long-term interest rates had risen to levels
last seen more than two years ago.
MUNICIPAL MARKET CONDITIONS
Long-term insured municipal index yields began 1999 near a record low of 5.00
percent. By the end of November, this index yield had increased 100 basis
points, to 6.00 percent. Since the prices of bonds move inversely to changes in
interest rates, higher yields have led to significantly lower bond prices. The
increase in the index yield translated into a 13 percent price decline for a
generic insured municipal bond with a 30-year maturity.
The municipal market outperformed U.S. Treasury bonds early in the year but
later gave ground. The ratio of long-term municipal yields to 30-year Treasury
yields declined from 99 percent at the end of 1998 to 91 percent in May 1999
then reversed itself by rising to 95 percent by the end of November. A declining
ratio means municipals have outperformed Treasuries, while a rising ratio
indicates underperformance by municipals. Over the past five years the ratio has
ranged from a high of 99 percent to a low of 82 percent.
Higher interest rates slowed municipal underwriting in 1999. New-issue volume
declined 20 percent in the first 11 months. Refunding activity, the most
interest-rate-sensitive component of supply, dropped 50 percent.
<PAGE> 2
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
30-YEAR BOND YIELDS 1994-1999
<TABLE>
<CAPTION>
INSURED MUNICIPAL YIELDS
INSURED AS A PERCENTAGE OF
MUNICIPAL YIELDS U.S. TREASURY YIELDS U.S. TREASURY YIELDS
---------------- -------------------- -----------------------
<S> <C> <C> <C>
1994 5.40 6.34 85.17
5.40 6.24 86.54
5.80 6.66 87.09
6.40 7.09 90.27
6.35 7.32 86.75
6.25 7.43 84.12
6.50 7.61 85.41
6.25 7.39 84.57
6.30 7.45 84.56
6.55 7.81 83.87
6.75 7.96 84.80
7.00 8.00 87.50
6.75 7.88 85.66
1995 6.40 7.70 83.12
6.15 7.44 82.66
6.15 7.43 82.77
6.20 7.34 84.47
5.80 6.66 87.09
6.10 6.62 92.15
6.10 6.86 88.92
6.00 6.66 90.09
5.95 6.48 91.82
5.75 6.33 90.84
5.50 6.14 89.58
5.35 5.94 90.07
1996 5.40 6.03 89.55
5.60 6.46 86.69
5.85 6.66 87.84
5.95 6.89 86.36
6.05 6.99 86.55
5.90 6.89 85.63
5.85 6.97 83.93
5.90 7.11 82.98
5.70 6.93 82.25
5.65 6.64 85.09
5.50 6.35 86.61
5.60 6.63 84.46
1997 5.70 6.79 83.95
5.65 6.80 83.09
5.90 7.10 83.10
5.75 6.94 82.85
5.65 6.91 81.77
5.60 6.78 82.60
5.30 6.30 84.13
5.50 6.61 83.21
5.40 6.40 84.38
5.35 6.15 86.99
5.30 6.05 87.60
5.15 5.92 86.99
1998 5.15 5.80 88.79
5.20 5.92 87.84
5.25 5.93 88.53
5.35 5.95 89.92
5.20 5.80 89.66
5.20 5.65 92.04
5.18 5.71 90.72
5.03 5.27 95.45
4.95 5.00 99.00
5.05 5.16 97.87
5.00 5.06 98.81
5.05 5.10 99.02
1999 5.00 5.09 98.23
5.10 5.58 91.40
5.15 5.63 91.47
5.20 5.66 91.87
5.30 5.83 90.91
5.47 5.96 91.78
5.55 6.10 90.98
5.75 6.06 94.88
5.85 6.05 96.69
6.03 6.16 97.90
6.00 6.29 95.39
</TABLE>
PERFORMANCE
In this rising interest rate environment, the net asset value (NAV) of Morgan
Stanley Dean Witter Municipal Premium Income Trust (PIA) declined from $10.03 to
$9.29 per share during the six-month period ended November 30, 1999. Based on
this change plus reinvestment of tax-free dividends totaling $0.26 per share,
the Fund's total NAV return was -4.29 percent. PIA's value on the New York Stock
Exchange (NYSE) fell from $8.75 to $7.5625 per share during the same period.
Based on this change plus reinvestment of dividends, PIA's total market return
was -10.78 percent. On November 30, 1999, PIA's NYSE market price traded at an
18.60 percent discount to its NAV.
Monthly dividends for the fourth quarter of 1999 were declared in September.
Beginning with the October payment, the dividend per share was increased from
$0.0425 to $0.045 per share. The new dividend rate reflects the Fund's estimated
earnings over the next 6-12 months and its $0.117 per share cushion of
undistributed net investment income on November 30, 1999.
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
PORTFOLIO STRUCTURE
The Fund's investments were diversified among 13 long-term sectors and 79
credits. At the end of November, the portfolio's average maturity was 19 years.
Average duration, a measure of sensitivity to interest-rate changes, was 7.6
years. The refunded bond category comprised 5 percent of net assets. Refunded
issues have been refinanced and will be redeemed on the dates shown in the
portfolio. The accompanying charts provide current information on the
portfolio's credit quality, sector distribution and geographic diversification.
Optional call provisions by year and their respective cost (book) yields are
also charted.
THE IMPACT OF LEVERAGING
As discussed in previous reports, the total income available for distribution to
common shareholders includes incremental income provided by the Fund's
outstanding Auction Rate Preferred Shares (ARPS). ARPS dividends reflect
prevailing short-term interest rates on maturities normally ranging from one
week to one year. Incremental income to common shareholders depends on two
factors. The first factor is the amount of ARPS outstanding, the second the
spread between the portfolio's cost yield and ARPS expenses (ARPS auction rate
and expenses). The greater the spread and the amount of ARPS outstanding, the
greater the amount of incremental income available for distribution to common
shareholders. The level of net investment income available for distribution to
common shareholders varies with the level of short-term interest rates. ARPS
leverage also increases the price volatility of common shares and has the effect
of extending portfolio duration.
During this 6-month period, ARPS leverage contributed approximately $0.01 per
share to common share earnings. Weekly ARPS yields ranged between 3.00 and 3.95
percent. In comparison, the yield on one-year municipal notes increased from
3.20 percent in early June to 3.87 percent at the end of November 1999. The
Fund's five ARPS series totaling $100 million represented 32 percent of net
assets.
LOOKING AHEAD
The Federal Reserve Board raised interest rates twice in the summer and again in
November 1999. These moves confirmed its previously disclosed bias of becoming
less accommodative in the face of continued strong domestic economic growth. It
is anticipated that the central bank may raise short-term interest rates further
and influence the level of long-term rates. However, we believe municipal bonds
continue to offer tax conscious investors good long-term value relative to
Treasuries.
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
The Fund's procedure for reinvestment of all dividends and distributions on
common shares is through purchases in the open market. This method helps support
the market value of the Fund's shares. In addition, we would like to remind you
that the Trustees have approved a procedure whereby the Fund may, when
appropriate, purchase 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. The Fund may also utilize procedures to reduce or
eliminate the amount of outstanding ARPS, including their purchase in the open
market or in privately negotiated transactions. During the six-month period
ended November 30, 1999, the Fund purchased and retired 710,600 shares of common
stock at a weighted average market discount of 14.16 percent.
We appreciate your ongoing support of Morgan Stanley Dean Witter Municipal
Premium Income Trust and look forward to continuing to serve your investment
needs.
<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>
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
LARGEST SECTORS AS OF NOVEMBER 30, 1999
(% OF NET ASSETS)
[LARGEST SECTORS BAR CHART]
<TABLE>
<CAPTION>
<S> <C>
HOSPITAL 15.00
ELECTRIC 15.00
TRANSPORTATION 13.00
IDR/PCR* 13.00
GENERAL OBLIGATION 9.00
WATER & SEWER 8.00
MORTGAGE 7.00
REFUNDED 5.00
EDUCATION 4.00
</TABLE>
* Industrial Development/Pollution Control Revenue
Portfolio structure is subject to change.
CREDIT RATINGS AS OF NOVEMBER 30, 1999
(% OF TOTAL LONG-TERM PORTFOLIO)
[CREDIT RATINGS PIE CHART]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Aaa OR AAA Aa OR AA A OR A Baa OR BBB NR
65.00 21.00 3.00 9.00 2.00
</TABLE>
AS MEASURED BY MOODY'S INVESTORS SERVICE, INC. OR STANDARD & POOR'S CORP.
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
GEOGRAPHIC SUMMARY OF INVESTMENTS
BASED ON MARKET VALUE AS A PERCENT OF NET ASSETS
NOVEMBER 30, 1999
<TABLE>
<S> <C>
ALABAMA.................. 3.3%
ARIZONA.................. 3.6
CALIFORNIA............... 7.1
COLORADO................. 2.0
GEORGIA.................. 4.5
HAWAII................... 1.0
ILLINOIS................. 6.7
KANSAS................... 4.7
LOUISIANA................ 0.8
MASSACHUSETTS............ 7.2
MICHIGAN................. 3.7%
MINNESOTA................ 1.9
MISSISSIPPI.............. 0.1
MISSOURI................. 4.0
NEW JERSEY............... 2.7
NEW MEXICO............... 1.2
NEW YORK................. 8.2
NORTH CAROLINA........... 1.0
OHIO..................... 4.2
PENNSYLVANIA............. 1.0
PUERTO RICO.............. 0.8%
RHODE ISLAND............. 0.1
SOUTH CAROLINA........... 3.5
TENNESSEE................ 1.5
TEXAS.................... 14.1
UTAH..................... 2.2
VIRGINIA................. 2.6
WASHINGTON............... 3.3
WISCONSIN................ 1.4
------
TOTAL.................... 98.4%
======
</TABLE>
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
CALL AND COST (BOOK) YIELD STRUCTURE NOVEMBER 30, 1999
[PERCENT CALLABLE BAR GRAPH]
<TABLE>
<CAPTION>
Weighted Average Call Protection: 6 Years
YEARS BOND CALLABLE PERCENT CALLABLE*
-----------------
<S> <C>
2000 11.00
2001 4.00
2002 10.00
2003 0.00
2004 10.00
2005 11.00
2006 12.00
2007 4.00
2008 25.00
2009 6.00
2010+ 7.00
</TABLE>
[COST (BOOK) YIELD GRAPH]
<TABLE>
<CAPTION>
Weighted Average Book Yield: 6.01%
COST (BOOK) YIELD **
--------------------
<S> <C>
2000 7.48
2001 7.10
2002 6.20
2003 0.00
2004 6.47
2005 6.04
2006 5.37
2007 6.05
2008 5.36
2009 5.46
2010+ 5.89
</TABLE>
* % Based on Long-Term Portfolio.
** Cost or "book" yield is the annual income earned on a portfolio investment
based on its original purchase price before Fund operating expenses. For
example, the fund earned a book yield of 7.5% on 11% of the long-term
portfolio that are callable in 2000.
Portfolio structure is subject to change.
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
PORTFOLIO OF INVESTMENTS November 30, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TAX-EXEMPT MUNICIPAL BONDS (94.7%)
General Obligation (9.4%)
$ 2,000 California, Dtd 10/01/98 Refg (MBIA)........................ 4.50% 10/01/28 $ 1,588,460
5,000 Los Angeles Unified School District, California, 1997 Ser B
(FGIC)..................................................... 5.00 07/01/23 4,413,200
3,000 Hawaii, 1999 Ser CT (FSA)................................... 5.875 09/01/17 3,006,000
3,500 Massachusetts, 1995 Ser A (AMBAC)........................... 5.00 07/01/12 3,413,690
2,000 Berkley School District, Michigan, Refg Ser 1999 (FGIC)..... 4.75 01/01/19 1,714,000
2,000 Michigan Municipal Bond Authority, School Ser 1998.......... 5.25 12/01/13 1,953,520
3,000 Barberton City School District, Ohio, Ser 1998 (FGIC)....... 5.125 11/01/22 2,696,880
1,300 Puerto Rico, Public Improvement Ser 1998 (MBIA)............. 4.875 07/01/23 1,129,908
3,500 Shelby County, Tennessee, Refg 1995 Ser A................... 5.625 04/01/11 3,571,575
6,000 Washington, Ser 1993 A...................................... 5.75 10/01/17 5,966,400
- -------- -----------
31,300 29,453,633
- -------- -----------
Educational Facilities Revenue (3.9%)
5,500 Oakland University, Michigan, Ser 1995 (MBIA)............... 5.75 05/15/26 5,325,704
New York State Dormitory Authority,
4,000 State University Refg Ser 1993 A........................... 5.50 05/15/08 4,062,040
1,350 State University Refg Ser 1990 B........................... 7.50 05/15/11 1,546,898
1,250 Ohio State University, General Receipts, Ser 1999 A (WI).... 5.75 12/01/24 1,220,863
- -------- -----------
12,100 12,155,505
- -------- -----------
Electric Revenue (14.7%)
3,000 Los Angeles Department of Water & Power, California, Issue
of 1992.................................................... 6.375 02/01/20 3,112,350
5,000 Sacramento Municipal Utility District, California, Refg 1994
Ser I (MBIA)............................................... 6.00 01/01/24 5,030,000
2,950 Kansas City, Kansas, Utility Refg & Impr Ser 1994 (FGIC).... 6.375 09/01/23 3,017,408
7,750 South Carolina Public Service Authority, 1995 Refg Ser A
(AMBAC).................................................... 6.25 01/01/22 7,823,780
4,000 Lower Colorado River Authority, Texas, Jr Lien Seventh Ser
(FSA)...................................................... 4.75 01/01/28 3,350,880
17,000 San Antonio, Texas, Electric & Gas Refg Ser 1994 C.......... 4.70 02/01/06 16,837,649
Intermountain Power Agency, Utah,
2,000 Refg 1999 Ser A (MBIA)..................................... 5.25 07/01/15 1,903,780
5,000 Refg 1997 Ser B (MBIA)**................................... 5.75 07/01/19 4,890,600
- -------- -----------
46,700 45,966,447
- -------- -----------
Hospital Revenue (15.4%)
5,000 Birmingham-Carraway Special Care Facilities Financing
Authority, Alabama, Carraway Methodist Health Ser 1995 A
(Connie Lee)**............................................. 5.875 08/15/15 4,981,750
3,500 Colbert County - Northwest Health Care Authority, Alabama,
Hellen Keller Hospital Refg Ser 1990....................... 8.75 06/01/09 3,642,135
2,000 Montgomery Special Care Facilities Financing Authority,
Alabama, Baptist Health Ser 1998 B (MBIA).................. 5.00 11/15/29 1,679,720
3,000 Hall County & Gainesville Hospital Authority, Georgia,
Northeast Georgia Healthcare Ser 1995 (MBIA)............... 6.00 10/01/20 2,989,110
9,500 Boston, Massachusetts, Boston City Hospital - FHA Mtg Refg
Ser B...................................................... 5.75 02/15/13 9,506,079
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
PORTFOLIO OF INVESTMENTS November 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 5,000 New Jersey Health Care Authority, St Barnabas Medical Center
Ser 1998 B (MBIA).......................................... 4.75% 07/01/28 $ 4,144,400
4,000 North Carolina Medical Care Commission, Duke University
Health Ser 1998 A.......................................... 4.75 06/01/28 3,225,480
4,000 Montgomery County, Ohio, Franciscan Medical Center - Dayton
Ser 1997................................................... 5.50 07/01/18 3,489,960
2,985 Lehigh County General Purpose Authority, Pennsylvania, St
Lukes Hospital Ser 1992 (AMBAC)............................ 6.25 07/01/22 3,011,955
2,750 Jefferson County Health Facilities Development Corporation,
Texas,
Baptist Health Ser 1989.................................... 8.30 10/01/14 2,786,960
5,000 Washington Health Care Facilities Authority, Swedish Health
Ser 1998 (AMBAC)........................................... 5.125 11/15/22 4,351,800
5,000 Wisconsin Health & Educational Facilities Authority, Wausau
Hospital Refg Ser 1998 A (AMBAC)........................... 5.125 08/15/20 4,393,300
- -------- -----------
51,735 48,202,649
- -------- -----------
Industrial Development/Pollution Control Revenue (12.6%)
10,360 Pima County Industrial Development Authority, Arizona,
Tucson Electric
Power Co Refg Ser 1988 A (FSA)............................. 7.25 07/15/10 11,124,568
10,000 Burlington, Kansas, Kansas Gas & Electric Co Ser 1991
(MBIA)**................................................... 7.00 06/01/31 10,513,300
8,000 New York City Industrial Development Agency, New York,
Brooklyn Navy Yard Cogeneration Partners LP Ser 1997
(AMT)...................................................... 5.65 10/01/28 7,233,520
10,000 Alliance Airport Authority, Texas, AMR Corp Ser 1990
(AMT)...................................................... 7.50 12/01/29 10,405,400
- -------- -----------
38,360 39,276,788
- -------- -----------
Mortgage Revenue - Multi-Family (2.9%)
1,250 Lake Charles Non-Profit Housing Development Corporation,
Louisiana,
Ser 1990 A (FSA)........................................... 7.875 02/15/25 1,251,263
Massachusetts Housing Finance Agency,
1,790 Rental 1994 Ser A (AMT) (AMBAC)............................ 6.60 07/01/14 1,860,419
3,460 Rental 1994 Ser A (AMT) (AMBAC)............................ 6.65 07/01/19 3,576,843
2,420 Minnesota Housing Finance Agency, Rental 1995 Ser D
(MBIA)..................................................... 6.00 02/01/22 2,396,357
- -------- -----------
8,920 9,084,882
- -------- -----------
Mortgage Revenue - Single Family (4.4%)
Colorado Housing & Finance Authority,
150 Ser 1990 B-2............................................... 8.00 02/01/18 152,855
2,500 Ser 1997 A-2 (AMT)......................................... 7.25 05/01/27 2,684,824
135 Idaho Housing Agency, 1988 Ser D-2 (AMT).................... 8.25 01/01/20 137,977
685 Kansas City Leavenworth & Lenexa, Kansas, GNMA-Backed Ser
1998 C (AMT)............................................... 8.00 11/01/20 704,824
Olathe, Kansas,
75 GNMA Collateralized Ser 1990 B............................. 7.50 09/01/10 77,474
230 GNMA Collateralized Ser 1989 A (AMT) (MBIA)................ 8.00 11/01/20 234,798
1,170 New Orleans Home Mortgage Authority, Louisiana, GNMA
Collateralized
1989 Ser B-1 (AMT)......................................... 8.25 12/01/21 1,188,919
420 Mississippi Housing Finance Corporation, GNMA-Backed Ser
1989 (AMT) (FGIC).......................................... 8.25 10/15/18 428,954
2,535 Missouri Housing Development Commission, Homeownership 1996
Ser D (AMT)................................................ 7.10 09/01/27 2,647,478
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
PORTFOLIO OF INVESTMENTS November 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 45 Muskogee County Home Finance Authority, Oklahoma, 1990 Ser A
(FGIC)..................................................... 7.60% 12/01/10 $ 46,066
200 Rhode Island Housing & Mortgage Finance Corporation,
Homeownership
1988 Ser 1-D (AMT)......................................... 7.875 10/01/22 204,190
South Carolina Housing Finance & Development Authority,
1,955 Homeownership 1998 Ser C-1 (AMT)........................... 8.125 07/01/21 1,988,900
1,220 Homeownership 1991 Ser A (AMT)............................. 7.40 07/01/23 1,251,000
Utah Housing Finance Agency,
60 Ser 1991 B-1............................................... 7.50 07/01/16 61,682
45 Ser 1989 B (AMT)........................................... 8.25 07/01/21 45,320
2,000 Virginia Housing Development Authority, 1992 Ser A.......... 7.10 01/01/25 2,043,380
- -------- -----------
13,425 13,898,641
- -------- -----------
Nursing & Health Related Facilities Revenue (0.6%)
New York State Medical Care Facilities Finance Agency,
825 Mental Health Ser 1987..................................... 8.875 08/15/07 828,003
565 Mental Health Ser 1990 A (Secondary MBIA).................. 7.75 02/15/20 580,069
405 Mental Health Ser 1991 A................................... 7.50 02/15/21 425,756
- -------- -----------
1,795 1,833,828
- -------- -----------
Public Facilities Revenue (1.8%)
2,000 Metropolitan Pier & Exposition Authority, Illinois,
McCormick Place
Refg Ser 1998 A (FGIC)..................................... 5.50 06/15/18 1,941,160
Saint Paul Independent School District #625, Minnesota,
1,700 Ser 1995 C COPs............................................ 5.45 02/01/11 1,714,008
1,800 Ser 1995 C COPs............................................ 5.50 02/01/12 1,815,948
- -------- -----------
5,500 5,471,116
- -------- -----------
Transportation Facilities Revenue (12.9%)
3,000 Alameda Corridor Transportation Authority, California, Sr
Lien Ser 1999 A (MBIA)..................................... 5.25 10/01/21 2,765,550
3,500 Atlanta, Georgia, Airport Ser 1994 B (AMT) (AMBAC).......... 6.00 01/01/21 3,470,845
Chicago, Illinois,
5,000 Chicago-O'Hare International Airport Ser 1996 A (AMBAC).... 5.625 01/01/12 5,053,100
7,000 Midway Airport 1994 Ser A (AMT) (MBIA)..................... 6.25 01/01/24 7,027,580
5,000 New Jersey Transportation Trust Authority, 1998 Ser A
(FSA)...................................................... 4.50 06/15/19 4,148,650
2,500 New York State Thruway Authority, Local Highway & Bridge Ser
1998 A (MBIA).............................................. 5.00 04/01/18 2,242,000
1,700 Puerto Rico Highway & Transportation Authority, Ser 1998
A.......................................................... 4.75 07/01/38 1,346,179
8,000 Austin, Texas, Airport Prior Lien Ser 1995 A (AMT) (MBIA)... 6.125 11/15/25 7,973,920
5,000 Pocahontas Parkway Association, Virginia, Route 895
Connector Ser 1998 A....................................... 5.50 08/15/28 4,278,300
2,000 Richmond Metropolitan Authority, Virginia, Expressway & Refg
Ser 1998 (FGIC)............................................ 5.25 07/15/17 1,894,220
- -------- -----------
42,700 40,200,344
- -------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
PORTFOLIO OF INVESTMENTS November 30, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Water & Sewer Revenue (7.6%)
$ 2,500 Coachella, California, Ser 1992 COPs (FSA).................. 6.10% 03/01/22 $ 2,519,225
3,000 Eastern Municipal Water District, California, Water & Sewer
Refg Ser 1998 A COPs (FGIC)................................ 4.75 07/01/23 2,526,510
3,000 Atlanta, Georgia, Water & Wastewater Ser 1999 A (FGIC)...... 5.50 11/01/06 2,886,510
5,000 Rockdale County Water & Sewage Authority, Georgia, Ser 1999
A (MBIA)................................................... 5.50 07/01/25 4,699,700
5,000 Massachusetts Water Resources Authority, 1998 Ser A (FSA)... 4.75 08/01/27 4,101,150
3,000 Detroit, Michigan, Water Supply 1997 Ser A (MBIA)........... 5.00 07/01/21 2,649,330
5,000 Cleveland, Ohio, Waterworks Impr & Refg 1998 Ser I (FSA).... 5.00 01/01/23 4,401,950
- -------- -----------
26,500 23,784,375
- -------- -----------
Other Revenue (3.2%)
10,000 New York Local Government Assistance Corporation, Refg Ser
1997 B (MBIA).............................................. 5.00 04/01/21 8,815,600
1,450 Cuyahoga County, Ohio, The Medical Center Co Ser 1998
(AMBAC).................................................... 5.125 02/15/28 1,265,212
- -------- -----------
11,450 10,080,812
- -------- -----------
Refunded (5.3%)
5,000 Regional Transportation Authority, Illinois, Ser 1994 A
(AMBAC).................................................... 6.25 06/01/04+ 5,407,200
1,800 Southwestern Illinois Development Authority, Anderson
Hospital Ser 1992 A........................................ 7.00 08/15/02+ 1,937,610
1,340 Missouri Health & Educational Facilities Authority, Missouri
Baptist Medical Center Refg Ser 1989 (ETM)................. 7.625 07/01/18 1,370,820
3,600 Rio Rancho, New Mexico, Water & Wastewater Ser 1995 A
(FSA)...................................................... 6.00 05/15/06+ 3,833,280
1,000 Shelby County, Tennessee, Refg 1995 Ser A................... 5.625 04/01/05+ 1,049,010
3,000 San Antonio, Texas, Electric & Gas Refg Ser 1994 C (ETM).... 4.70 02/01/06 2,941,680
- -------- -----------
15,740 16,539,600
- -------- -----------
306,225 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Identified Cost $299,758,957)................. 295,948,620
- -------- -----------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (3.7%)
8,500 Missouri Health & Education Facilities Authority, Cox Health
Ser 1997 (Demand 12/01/99)................................. 3.75* 06/01/15 8,500,000
3,200 Harris County Health Facilities Development Corporation,
Texas, St Luke's
Episcopal Hospital Ser 1997 A (Demand 12/01/99)............ 3.70* 02/15/27 3,200,000
- -------- -----------
11,700 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Identified Cost
$11,700,000)................................................................... 11,700,000
- -------- -----------
$317,925 TOTAL INVESTMENTS (Identified Cost $311,458,957) (a).......... 98.4%
307,648,620
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES................. 1.6
4,879,989
----- ------------
NET ASSETS.................................................... 100.0%
$312,528,609
----- ============
-----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
PORTFOLIO OF INVESTMENTS November 30, 1999 (unaudited) continued
- ---------------------
<TABLE>
<C> <S>
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
WI Security purchased on a "when-issued" basis.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
** This security is segregated in connection with the purchase
of "when-issued" securities.
(a) The aggregate cost for federal income tax purposes
approximates identified cost. The aggregate gross unrealized
appreciation is $6,549,277 and the aggregate gross
unrealized depreciation is $10,359,614, resulting in net
unrealized depreciation of $3,810,337.
Bond Insurance:
- ------------------------------------------------------------------------
AMBAC AMBAC Assurance Corporation.
Connie Lee Connie Lee Insurance Company -- a wholly owned subsidiary of
AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $311,458,957)............................. $307,648,620
Cash........................................................ 30,426
Receivable for:
Interest................................................ 5,792,298
Investments sold........................................ 663,218
Prepaid expenses and other assets........................... 237,632
-----------
TOTAL ASSETS............................................ 314,372,194
-----------
LIABILITIES:
Payable for:
Investments purchased................................... 1,230,450
Dividends to preferred shareholders..................... 208,830
Shares of beneficial interest repurchased............... 123,499
Investment advisory fee................................. 110,280
Administration fee...................................... 68,925
Accrued expenses and other payables......................... 101,601
-----------
TOTAL LIABILITIES....................................... 1,843,585
-----------
NET ASSETS.............................................. $312,528,609
===========
COMPOSITION OF NET ASSETS:
Preferred shares of beneficial interest (1,000,000 shares
authorized of non-participating $.01 par value, 1,000
shares outstanding)........................................ $100,000,000
-----------
Common shares of beneficial interest (unlimited shares
authorized of $.01 par value, 22,874,424 shares
outstanding)............................................... 213,280,614
Net unrealized depreciation................................. (3,810,337)
Accumulated undistributed net investment income............. 2,673,137
Accumulated undistributed net realized gain................. 385,195
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS............ 212,528,609
-----------
TOTAL NET ASSETS........................................ $312,528,609
===========
NET ASSET VALUE PER COMMON SHARE
($212,528,609 divided by 22,874,424 common shares
outstanding)............................................... $9.29
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended November 30, 1999 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $ 9,334,133
------------
EXPENSES
Investment advisory fee..................................... 647,291
Administration fee.......................................... 404,557
Auction commission fees..................................... 163,172
Transfer agent fees and expenses............................ 43,280
Professional fees........................................... 31,668
Shareholder reports and notices............................. 22,474
Auction agent fees.......................................... 17,129
Registration fees........................................... 9,692
Custodian fees.............................................. 8,853
Trustees' fees and expenses................................. 7,749
Other....................................................... 14,776
------------
TOTAL EXPENSES.......................................... 1,370,641
Less: expense offset........................................ (8,787)
------------
NET EXPENSES............................................ 1,361,854
------------
NET INVESTMENT INCOME................................... 7,972,279
------------
NET REALIZED AND UNREALIZED LOSS:
Net realized loss........................................... (1,238,630)
Net change in unrealized appreciation....................... (17,098,278)
------------
NET LOSS................................................ (18,336,908)
------------
NET DECREASE................................................ $(10,364,629)
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
NOVEMBER 30, 1999 MAY 31, 1999
- ---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................................ $ 7,972,279 $ 16,784,754
Net realized gain (loss)............................. (1,238,630) 2,192,129
Net change in unrealized appreciation................ (17,098,278) (6,180,178)
------------ ------------
NET INCREASE (DECREASE).......................... (10,364,629) 12,796,705
------------ ------------
Dividends to preferred shareholders from net
investment income................................... (1,757,528) (3,464,520)
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
FROM:
Net investment income................................ (6,054,519) (13,010,308)
Net realized gain.................................... -- (6,255,848)
------------ ------------
TOTAL............................................ (6,054,519) (19,266,156)
------------ ------------
Decrease from transactions in common shares of
beneficial interest................................. (5,790,481) (7,962,618)
------------ ------------
NET DECREASE..................................... (23,967,157) (17,896,589)
NET ASSETS:
Beginning of period.................................. 336,495,766 354,392,355
------------ ------------
END OF PERIOD
(Including undistributed net investment income of
$2,673,137 and $2,512,905, respectively)......... $312,528,609 $336,495,766
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE> 15
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Municipal Premium Income Trust (the "Fund") is
registered under the Investment Company Act of 1940, as amended, as a
diversified, closed-end management investment company. The Fund's investment
objective is to provide a high level of current income exempt from federal
income tax. The Fund was organized as a Massachusetts business trust on November
16, 1988 and commenced operations on February 1, 1989.
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 -- Portfolio securities are valued by an outside
independent pricing service approved by the Trustees. The pricing service has
informed the Fund that in valuing the portfolio securities, it uses both a
computerized matrix of tax-exempt securities and evaluations by its staff, in
each case based on information concerning market transactions and quotations
from dealers which reflect the bid side of the market each day. The portfolio
securities are thus valued by reference to a combination of transactions and
quotations for the same or other securities believed to be comparable in
quality, coupon, maturity, type of issue, call provisions, trading
characteristics and other features deemed to be relevant. 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 and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable and nontaxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment
15
<PAGE> 16
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999 (unaudited) continued
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 ADVISORY AGREEMENT
Pursuant to an Investment Advisory Agreement with Morgan Stanley Dean Witter
Advisors Inc. (the "Investment Advisor"), an affiliate of Morgan Stanley Dean
Witter Services Company Inc. (the "Administrator"), the Fund pays the Investment
Advisor an advisory fee, calculated weekly and payable monthly, by applying the
annual rate of 0.40% to the Fund's weekly net assets.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Advisor pays the salaries of all personnel,
including officers of the Fund, who are employees of the Investment Advisor.
3. ADMINISTRATION AGREEMENT
Pursuant to an Administration Agreement with the Administrator, the Fund pays an
administration fee, calculated weekly and payable monthly, by applying the
annual rate of 0.25% to the Fund's weekly net assets.
Under the terms of the Administration Agreement, the Administrator 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 Administrator. The Administrator also bears the cost of
telephone services, heat, light, power and other utilities provided to the Fund.
16
<PAGE> 17
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999 (unaudited) continued
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended November 30, 1999 aggregated
$22,763,030 and $34,261,251, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Advisor and
Administrator, is the Fund's transfer agent.
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 November 30, 1999
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,987. At November 30, 1999, the Fund had an accrued pension liability of
$52,109 which is included in accrued expenses in the Statement of Assets and
Liabilities.
5. COMMON 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, May 31, 1998....................................... 24,433,224 $244,332 $226,789,381
Treasury shares purchased and retired (weighted average
discount 9.68%)*........................................... (848,200) (8,482) (7,954,136)
---------- -------- ------------
Balance, May 31, 1999....................................... 23,585,024 235,850 218,835,245
Treasury shares purchased and retired (weighted average
discount 14.16%)*.......................................... (710,600) (7,106) (5,783,375)
---------- -------- ------------
Balance, November 30, 1999.................................. 22,874,424 $228,744 $213,051,870
========== ======== ============
</TABLE>
- ---------------------
* The Trustees have voted to retire the shares purchased.
6. PREFERRED SHARES OF BENEFICIAL INTEREST
The Fund is authorized to issue up to 1,000,000 non-participating preferred
shares of beneficial interest having a par value of $.01 per share, in one or
more series, with rights as determined by the Trustees, without the approval of
the common shareholders. The Fund has issued Series A through E Auction
17
<PAGE> 18
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999 (unaudited) continued
Rate Preferred Shares ("Preferred Shares") which have a liquidation value of
$100,000 per share plus the redemption premium, if any, plus accumulated but
unpaid dividends, whether or not declared, thereon to the date of distribution.
The Fund may redeem such shares, in whole or in part, at the original purchase
price of $100,000 per share plus accumulated but unpaid dividends, whether or
not declared, thereon to the date of redemption.
Dividends, which are cumulative, are reset through auction procedures.
<TABLE>
<CAPTION>
AMOUNT IN NEXT RANGE OF
SERIES SHARES* THOUSANDS* RATE* RESET DATE DIVIDEND RATES**
- ------ ------- ---------- ----- ---------- ----------------
<S> <C> <C> <C> <C> <C>
A 200 $20,000 3.75% 12/07/99 3.10% - 3.95%
B 200 20,000 3.65 12/07/99 3.00 - 3.80
C 200 20,000 3.85 08/29/00 3.49 - 3.85
D 200 20,000 3.35 01/11/00 3.35
E 200 20,000 3.65 07/03/00 3.55 - 3.65
</TABLE>
- ---------------------
<TABLE>
<S> <C>
* As of November 30, 1999.
** For the six months ended November 30, 1999.
</TABLE>
Subsequent to November 30, 1999 and up through January 7, 2000, the Fund paid
dividends to each of the Series A through E at rates ranging from 3.65% to 5.50%
in the aggregate amount of $306,108.
The Fund is subject to certain restrictions relating to the preferred shares.
Failure to comply with these restrictions could preclude the Fund from declaring
any distributions to common shareholders or purchasing common shares and/or
could trigger the mandatory redemption of preferred shares at liquidation value.
The preferred shares, which are entitled to one vote per share, generally vote
with the common shares but vote separately as a class to elect two Trustees and
on any matters affecting the rights of the preferred shares.
7. DIVIDENDS TO COMMON SHAREHOLDERS
The Fund declared the following dividends from net investment income:
<TABLE>
<CAPTION>
DECLARATION AMOUNT RECORD PAYABLE
DATE PER SHARE DATE DATE
- ------------------ --------- ------------------ ------------------
<S> <C> <C> <C>
September 29, 1999 $0.045 December 3, 1999 December 17, 1999
December 28, 1999 $0.045 January 7, 2000 January 21, 2000
December 28, 1999 $0.045 February 4, 2000 February 18, 2000
December 28, 1999 $0.045 March 3, 2000 March 17, 2000
</TABLE>
18
<PAGE> 19
MORGAN STANLEY DEAN WITTER MUNICIPAL PREMIUM INCOME TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a common share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED MAY 31*
MONTHS ENDED ----------------------------------------------------
NOVEMBER 30, 1999 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA:
Net asset value, beginning of period............... $10.03 $10.41 $10.08 $10.02 $10.36 $10.24
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income............................. 0.35 0.70 0.75 0.78 0.79 0.84
Net realized and unrealized gain (loss)........... (0.79) (0.18) 0.33 0.19 (0.22) 0.26
------ ------ ------ ------ ------ ------
Total income (loss) from investment operations..... (0.44) 0.52 1.08 0.97 0.57 1.10
------ ------ ------ ------ ------ ------
Less dividends and distributions from:
Net investment income............................. (0.26) (0.54) (0.60) (0.60) (0.65) (0.72)
Common share equivalent of dividends paid to
preferred shareholders.......................... (0.08) (0.14) (0.15) (0.14) (0.15) (0.16)
Net realized gain................................. -- (0.26) -- (0.20) (0.12) (0.10)
------ ------ ------ ------ ------ ------
Total dividends and distributions.................. (0.34) (0.94) (0.75) (0.94) (0.92) (0.98)
------ ------ ------ ------ ------ ------
Anti-dilutive effect of acquiring treasury
shares............................................ 0.04 0.04 -- 0.03 0.01 --
------ ------ ------ ------ ------ ------
Net asset value, end of period..................... $ 9.29 $10.03 $10.41 $10.08 $10.02 $10.36
====== ====== ====== ====== ====== ======
Market value, end of period........................ $7.563 $ 8.75 $9.625 $9.375 $ 9.00 $9.688
====== ====== ====== ====== ====== ======
TOTAL RETURN+...................................... (10.78)%(1) (1.21)% 9.08% 13.52% 0.67% 8.15%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:
Expenses........................................... 1.23%(2)(3) 1.19%(3) 1.18%(3) 1.14%(3) 1.16%(3) 1.21%
Net investment income before preferred stock
dividends......................................... 7.15%(2) 6.73% 7.31% 7.70% 7.68% 8.37%
Preferred stock dividends.......................... 1.58%(2) 1.39% 1.46% 1.41% 1.44% 1.55%
Net investment income available to common
shareholders...................................... 5.57%(2) 5.34% 5.85% 6.29% 6.24% 6.82%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............ $312,529 $336,496 $354,392 $349,294 $355,587 $368,225
Asset coverage on preferred shares at end of
period............................................ 312% 336% 354% 349% 355% 368%
Portfolio turnover rate............................ 7%(1) 17% 21% 5% 14% 16%
</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 Fund's dividend reinvestment plan. Total
return does not reflect brokerage commissions.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE> 20
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
James F. Willison
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 ADVISOR
- ----------------------------------
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
Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
MORGAN STANLEY
DEAN WITTER
MUNICIPAL PREMIUM INCOME TRUST
Semiannual Report
November 30, 1999
