<PAGE> 1
DEAN WITTER WORLD WIDE INCOME TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - - - - --------------------------------------------------------------------------------
The multi-year rally in the U.S. bond market came to an abrupt halt early
in 1994, following several increases of short-term interest rates by the Federal
Reserve Board, the first tightening move in several years. As a result, both the
U.S. and global bond markets experienced sharp bond price declines.
FEDERAL RESERVE BOARD ACTIONS UNDERMINED GLOBAL BOND MARKETS
Since the beginning of 1994, global interest rates have increased
substantially. In the U.S. the Federal Reserve Board tightened its monetary
policy in response to surging economic growth by raising the federal funds
rate -- the interest rate banks charge one another for overnight loans -- from
3.00 percent to 3.75 percent in three separate moves in early February 1994. As
a result, ten-year U.S. interest rates rose by 124 basis points (1.24 percent)
in four months. (Subsequently, the Federal Reserve Board initiated another round
of tightening with a 0.50 percent increase in both the federal funds rate, to
4.25 percent, and the discount rate -- the interest rate the Federal Reserve
charges member banks for loans -- to 3.50 percent.)
In the meantime, short-term interest rates in Europe continued to decline
or remained stable. For example, three-month rates in Germany declined by more
than 100 basis points as Germany's Bundesbank followed through with its policy
of gradually reducing interest rates in response to improving inflation
prospects and sluggish economic growth. Other European central banks adopted a
similar stance in maintaining an accommodative monetary policy.
Despite this favorable policy background, long-term bond yields in Europe
rose sharply in sympathy with the developments in the U.S. bond market. The
price declines of European bonds were further exacerbated by selling by hedge
funds and other leveraged investors as their risk positions became overextended.
As a result, yields on 10-year German government bonds rose by 100 basis points
since the beginning of the year. In other markets, yields increased even more:
ten-year yields in France went up by 118 basis points, in Sweden, by 149 basis
points, Finland, 175 basis points.
PERFORMANCE AND PORTFOLIO STRATEGY
Under these adverse market conditions, Dean Witter World Wide Income Trust
declined 4.39 percent for the six-month period, with a trailing 12-month total
return of -0.67 percent. The six-month return reflected the distribution of
dividends totaling $0.2425 per share and a change in net asset value from $9.39
to $8.74 per share.
The Fund's strategy in this market environment has been to reduce the
Fund's average maturity (to approximately 4.7 years from 5.7 years) in order to
minimize the negative effect of further rate rises both here and abroad. In
addition, investments in longer-term European bonds were reduced and shifted to
short-term U.S. bonds to take advantage of higher yields and to avoid the costs
of hedging currency risks associated with foreign bonds. Also, most of the
foreign bonds were left unhedged and thus benefited from recent weakness of the
U.S. dollar versus European currencies and the Japanese yen. As of
<PAGE> 2
April 30, 1994, the Fund had 60 percent of its assets in North America, 35
percent in Europe, 3 percent in the Pacific Basin countries.
LOOKING AHEAD
We anticipate that the Fund will maintain its current strategy of
diversifying into different global markets, with an emphasis on short-term and
intermediate bonds. Also, since the fundamentals in Europe, including sluggish
economic growth and improving inflation outlook, argue for stable to slightly
lower short-term rates, short-term to intermediate European bonds continue to
offer good value. We believe this strategy will allow the Fund to take advantage
of the relative stability of this sector of the global bond markets. At the same
time, it should help the fund benefit once global bonds return to more normal
conditions in response to positive economic fundamentals.
We appreciate your ongoing support of Dean Witter World Wide Income Trust
and look forward to continuing to serve your investment objectives.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 3
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited)
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- - - - - --------------- ------ -------- ------------
<C> <S> <C> <C> <C>
FOREIGN CURRENCY DENOMINATED BONDS (97.3%)
AUSTRALIA (1.4%)
GOVERNMENT OBLIGATION (1.4%)
Au$ 4,500 Treasury Corp of Victoria.................................... 6.50 % 12/15/98 $ 3,013,449
------------
DENMARK (3.6%)
GOVERNMENT OBLIGATION (3.6%)
DKr 49,100 Government of Denmark Treasury Bond.......................... 9.75 2/10/95 7,797,390
------------
FRANCE (3.8%)
GOVERNMENT OBLIGATION (3.8%)
FFr 42,286 Government of France Treasury Bond........................... 8.50 11/25/02 8,356,787
------------
GERMANY (6.1%)
GOVERNMENT OBLIGATION (6.1%)
DEM 19,600 German Unity Fund............................................ 8.75 8/20/01 13,347,999
------------
ITALY (3.5%)
GOVERNMENT OBLIGATION (3.5%)
ITL 10,655,000 Government of Italy Treasury Bond............................ 12.00 9/ 1/02 7,594,539
------------
NEW ZEALAND (1.4%)
GOVERNMENT OBLIGATION (1.4%)
NZ$ 5,000 Government of New Zealand Treasury Bond...................... 9.00 11/15/96 3,010,066
------------
SPAIN (15.8%)
GOVERNMENT OBLIGATIONS (15.8%)
ESP 1,314,000 Government of Spain Treasury Bond............................ 13.45 4/15/96 10,687,331
1,500,000 Government of Spain Treasury Bond............................ 10.55 11/30/96 11,705,926
1,500,000 Government of Spain Treasury Bond............................ 11.45 8/30/96 12,194,558
------------
TOTAL SPAIN.................................................. 34,587,815
------------
SWEDEN (2.2%)
GOVERNMENT OBLIGATION (2.2%)
SKr 32,500 Government of Sweden Treasury Bond........................... 10.25 5/ 5/03 4,704,738
------------
UNITED KINGDOM (0.2%)
GOVERNMENT OBLIGATION (0.2%)
Pound 195 United Kingdom Treasury Gilt................................. 13.25 5/15/96 334,411
------------
UNITED STATES (59.3%)
FINANCIAL SERVICES (2.3%)
US$ 5,000 International Lease Finance Corp............................. 7.83 11/14/96 5,141,850
------------
GOVERNMENT AGENCIES (6.2%)
1,465 Federal National Mortgage Association........................ 6.00 1/ 1/24 1,291,693
5,868 Federal National Mortgage Association........................ 6.00 2/ 1/24 5,173,382
7,636 Federal National Mortgage Association........................ 6.50 2/ 1/24 6,967,580
------------
13,432,655
------------
</TABLE>
<PAGE> 4
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- - - - - --------------- ------ -------- ------------
<C> <S> <C> <C> <C>
GOVERNMENT OBLIGATIONS (50.8%)
US$ 28,000 United States Treasury Note.................................. 5.875% 5/15/96 $ 28,192,500
19,550 United States Treasury Note.................................. 8.50 5/15/96 20,197,594
20,000 United States Treasury Note.................................. 7.125 10/15/98 20,415,625
15,000 United States Treasury Bond.................................. 13.125 5/15/01 20,247,656
10,000 United States Treasury Bond.................................. 14.25 2/15/02 14,400,000
6,000 United States Treasury Bond.................................. 10.75 5/15/03 7,462,500
------------
110,915,875
------------
TOTAL UNITED STATES................................................................. 129,490,380
------------
TOTAL BONDS (IDENTIFIED COST $217,662,778).......................................... 212,237,574
------------
SHORT-TERM INVESTMENT(A)(1.1%)
UNITED STATES (1.1%)
GOVERNMENT AGENCY (1.1%)
2,475 Federal Home Loan Mortgage Corp.
(AMORTIZED COST $2,474,759)................................ 3.501 5/ 2/94 2,474,759
------------
TOTAL INVESTMENTS (IDENTIFIED COST $220,137,537)(b).................... 98.4% 214,712,333
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES......................... 1.6 3,594,193
------ ------------
NET ASSETS............................................................. 100.0% $218,306,526
------ ------------
------ ------------
</TABLE>
- - - - - ---------------
(a) Government Agency was purchased on a discount basis. The interest rate shown
has been adjusted to reflect a bond equivalent yield.
(b) The aggregate cost for federal income tax purposes is $220,137,537; the
aggregate gross unrealized appreciation is $648,453 and the aggregate gross
unrealized depreciation is $6,073,657, resulting in net unrealized
depreciation of $5,425,204.
FORWARD CONTRACTS FOR THE SALE OF FOREIGN CURRENCY AT APRIL 30, 1994:
<TABLE>
<CAPTION>
Contracts to In Exchange Delivery Unrealized
Deliver for Date Depreciation
- - - - - --------------- -------------- -------- ------------
<S> <C> <C> <C>
AtS 16,000,000 US$ 1,292,991 5/31/94 (86,273)
AtS 153,400,000 US$ 12,395,459 8/ 2/94 (780,640)
NKr 40,150,000 US$ 5,314,361 5/31/94 (301,153)
-----------
Net Unrealized
Depreciation.................... (1,168,066)
-----------
-----------
</TABLE>
See Notes to Financial Statements
<PAGE> 5
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS
- - - - - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1994 (unaudited)
- - - - - ---------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $220,137,537) (Note
1)................................... $ 214,712,333
Cash (including $85 in foreign
currency)............................ 46,555
Receivable for:
Investments sold..................... 25,535,574
Interest............................. 8,459,482
Compensated forward foreign currency
contracts.......................... 2,600,758
Shares of beneficial interest sold... 55,538
Prepaid expenses and other assets...... 22,086
----------------
TOTAL ASSETS................... 251,432,326
----------------
LIABILITIES:
Net depreciation on forward foreign
currency contracts................... 1,168,066
Payable for:
Investments purchased................ 25,238,712
Compensated forward foreign currency
contracts.......................... 6,041,180
Shares of beneficial interest
repurchased........................ 218,674
Plan of distribution fee (Note 3).... 153,350
Investment management fee (Note 2)... 135,309
Accrued expenses and other payables
(Note 4)............................. 170,509
----------------
TOTAL LIABILITIES.............. 33,125,800
----------------
NET ASSETS:
Paid-in-capital........................ 233,686,425
Accumulated net realized loss.......... (15,327,577)
Net unrealized depreciation............ (6,420,407)
Accumulated undistributed net
investment
income............................... 6,368,085
----------------
NET ASSETS..................... $ 218,306,526
================
NET ASSET VALUE PER SHARE,
24,985,453 shares outstanding (unlim-
ited authorized shares of $.01 par
value)............................... $8.74
------
------
STATEMENT OF OPERATIONS For the six months ended April
30, 1994 (unaudited)
- - - - - ---------------------------------------
INVESTMENT INCOME:
INTEREST (NET OF $61,195 IN FOREIGN
WITHHOLDING TAX)................... $ 9,647,088
----------------
EXPENSES
Plan of distribution fee (Note 3).... 1,053,782
Investment management fee (Note 2)... 922,989
Transfer agent fees and expenses..... 147,498
Custodian fees....................... 120,190
Professional fees.................... 50,486
Shareholder reports and notices...... 29,878
Registration fees.................... 15,601
Trustees' fees and expenses (Note
4)................................. 12,207
Organizational expenses (Note 1)..... 10,841
Other................................ 19,550
----------------
TOTAL EXPENSES..................... 2,383,022
----------------
NET INVESTMENT INCOME............ 7,264,066
----------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
(NOTE 1):
Net realized loss on:
Investments........................ (8,576,874)
Futures contracts.................. (2,846,412)
Foreign exchange transactions...... (3,904,291)
----------------
(15,327,577)
----------------
Net change in unrealized appreciation
or
depreciation on:
Investments........................ (4,418,184)
Translation of forward foreign
currency contracts, other assets
and liabilities denominated in
foreign currencies............... 1,228,838
----------------
(3,189,346)
----------------
NET LOSS........................... (18,516,923)
----------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $ (11,252,857)
================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six
months ended For the
April 30, 1994 year ended
(unaudited) October 31, 1993
------------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.................................................... $ 7,264,066 $ 18,689,959
Net realized gain (loss)................................................. (15,327,577) 7,562,927
Net change in unrealized appreciation or depreciation.................... (3,189,346) 502,607
------------------- ----------------
Net increase (decrease) in net assets resulting from operations...... (11,252,857) 26,755,493
Dividends to shareholders from net investment income....................... (6,659,505) (18,190,961)
Net decrease from transactions in shares of beneficial interest (Note 5)... (39,100,169) (57,430,882)
------------------- ----------------
Total decrease....................................................... (57,012,531) (48,866,350)
NET ASSETS:
Beginning of period........................................................ 275,319,057 324,185,407
------------------- ----------------
END OF PERIOD (including undistributed net investment income of $6,368,085
and $5,763,524 respectively).............................................. $ 218,306,526 $ 275,319,057
=================== ================
</TABLE>
See Notes to Financial Statements
<PAGE> 6
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- - - - - --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter World Wide Income Trust
(the "Fund") is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a non-diversified, open-end management investment company. It
was organized on October 14, 1988 as a Massachusetts business trust and
commenced operations on March 30, 1989.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- (1) an equity portfolio security listed or
traded on the New York or American Stock Exchange 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 (4:00 p.m. New York time); 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 by
the Trustees; (2) all other portfolio securities for which over-the-counter
market quotations are readily available are valued at the latest available
bid price prior to the time of valuation; (3) when market quotations are
not readily available, 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); and (4) the
fair value of short-term debt securities which mature at a date less than
sixty days subsequent to valuation date are determined on an amortized cost
or amortized value basis.
B. Accounting for Investments -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing
net investment income, the Fund does not amortize premiums or accrue
discounts on fixed income securities in the portfolio, except those
original issue discounts for which amortization is required for federal
income tax purposes. Additionally, with respect to market discount on
bonds, a portion of any capital gain realized upon disposition may be
recharacterized as investment income. Realized gains and losses on security
transactions are determined on the identified cost method. Interest income
is accrued daily.
C. Futures Contracts -- A futures contract is an agreement between two
parties to buy and sell a security or foreign currency at a set price on a
future date. Upon entering into such a contract the Fund pledges to the
broker cash or U.S. Government securities equal to the minimum "initial
margin" requirement of the applicable futures exchange. Pursuant to the
contract, the Fund is to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract translated at
the current exchange rate. Such receipts or payments are known as
"variation margin" and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the accumulated daily variation margin over the life of the
contract.
D. Foreign Currency Translation -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market
values of investment securities, other assets and liabilities and forward
contracts stated in foreign currencies are translated at the exchange rates
at the end of the period; and (2) purchases, sales, income and expenses are
translated at the rate of exchange prevailing on the respective dates of
such transactions. The resultant exchange gains and losses are included in
the Statement of Operations as realized and unrealized gain/loss on foreign
<PAGE> 7
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - - - --------------------------------------------------------------------------------
exchange transactions. Pursuant to U.S. Federal income tax regulations,
certain net foreign exchange gains/losses included in realized and
unrealized gain/loss in the Statement of Operations for the six months
ended April 30, 1994 are included in or are a reduction of ordinary income
for federal income tax purposes. The Fund does not isolate that portion of
the results of operations arising as a result of changes in the foreign
exchange rates from the changes in the market prices of the securities.
E. Forward Foreign Currency Contracts -- The Fund may enter into forward
foreign currency contracts as a hedge against fluctuations in future
foreign exchange rates. All forward contracts are valued daily at the
appropriate exchange rates and any resulting unrealized currency gains or
losses are reflected in the Fund's accounts. The Fund records realized
gains or losses on delivery of the currency or at the time the forward
contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.
F. 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.
G. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the record date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications. 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.
H. Organizational Expenses -- The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately
$132,000. The Fund has reimbursed the Investment Manager for these costs
which were deferred and amortized by the Fund on the straight line method
over a period not to exceed five years from the commencement of operations.
As of March 30, 1994, these expenses were fully amortized.
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, calculated
daily and payable monthly, by applying the following annual rates to the net
assets of the Fund determined as of the close of each business day: 0.75% of the
portion of the daily net assets not exceeding $250 million; 0.60% of the portion
of the daily net assets of the Fund exceeding $250 million but not exceeding
$500 million; 0.50% of the portion of the daily net assets of the Fund exceeding
$500 million but not exceeding $750 million; 0.40% of the portion of the daily
net assets of the Fund exceeding $750 million but not exceeding $1 billion; and
0.30% of the daily net assets of the Fund exceeding $1 billion.
<PAGE> 8
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - - - --------------------------------------------------------------------------------
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 office space and facilities, equipment, clerical,
bookkeeping and certain legal services, and pays the salaries of all personnel,
including officers of the Fund, who are employees of the Investment Manager. The
Investment Manager also bears the cost of telephone services, heat, light, power
and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION -- Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager.
The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act pursuant to which the Fund pays the Distributor compensation,
accrued daily and payable monthly at the annual rate of 0.85% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestments of dividends or capital gain
distributions), less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services provided and the expenses borne by
it and others in the distribution of the Fund's shares including the payment of
commissions for sales of the Fund's shares and incentive compensation to and
expenses of Dean Witter Reynolds Inc.'s account executives and others, who
engage in or support distribution of the Fund's shares or who service
shareholder accounts, including overhead and telephone expenses, printing and
distribution of prospectuses and reports used in connection with the offering of
the Fund's shares, to other than current shareholders; and preparation, printing
and distribution of sales literature and advertising materials. In addition, the
Distributor may be compensated under the Plan for its opportunity costs in
advancing such amounts, which compensation would be in the form of a carrying
charge on any unreimbursed expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses
incurred, but not yet recovered, may be recovered through future distribution
fees from the Fund and contingent deferred sales charges from the Fund's
shareholders.
The Distributor has informed the Fund that for the six months ended April
30, 1994, it received approximately $364,000 in contingent deferred sales
charges from certain redemptions of the Fund's shares. The Fund's shareholders
pay such charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and the proceeds from sales of portfolio securities for the six months
ended April 30, 1994, excluding short-term investments, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Corporate Bonds.............................................. $ 5,140,900 $ 1,473,899
Foreign Government Obligations............................... 138,015,148 60,981,268
U.S. Government Agencies and Obligations..................... 83,887,833 251,200,892
</TABLE>
On April 1, 1991, the Fund established 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
<PAGE> 9
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - - - --------------------------------------------------------------------------------
April 30, 1994, included in Trustees' fees and expenses in the Statement of
Operations, amounted to $4,384. At April 30, 1994, the Fund had an accrued
pension liability of $41,646 which is included in accrued expenses in the
Statement of Assets and Liabilities.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $20,700.
5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
For the six
months ended For the year ended
April 30, 1994 October 31, 1993
--------------------------- ----------------------------
Shares Amount Shares Amount
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold............................ 1,221,720 $ 11,213,973 3,405,127 $ 31,563,475
Reinvestment of dividends....... 391,767 3,542,089 1,033,162 9,475,837
---------- ------------ ----------- ------------
1,613,487 14,756,062 4,438,289 41,039,312
Repurchased..................... (5,948,873) (53,856,231) (10,713,382) (98,470,194)
---------- ------------ ----------- ------------
Net decrease.................... (4,335,386) $(39,100,169) (6,275,093) $(57,430,882)
========== ============= ============ =============
</TABLE>
6. FEDERAL INCOME TAX STATUS -- As of October 31, 1993, the Fund had temporary
book/tax differences primarily attributable to the mark-to-market of open
forward foreign currency exchange contracts and compensated forward foreign
currency exchange contracts and permanent book/tax differences primarily
attributable to foreign currency losses and dividend redesignations. To reflect
reclassifications arising from permanent book/tax differences as of October 31,
1993, paid-in-capital was charged $35,079,964, accumulated net realized loss was
credited $30,220,998, and accumulated undistributed net investment income was
credited $4,858,966. The Investment Manager has determined that distribution of
paid-in-capital is likely to occur.
7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK -- At April 30, 1994, the
Fund had outstanding forward foreign currency exchange contracts ("forward
contracts") as a hedge against changes in future foreign exchange rates. Forward
contracts involve elements of market risk in excess of the amount reflected in
the Statement of Assets and Liabilities. The Fund bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward contract.
<PAGE> 10
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL HIGHLIGHTS
- - - - - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
For the
period
March 30,
For the six 1989*
months ended For the year ended October 31, through
April 30, 1994 --------------------------------------------- October 31,
(unaudited) 1993 1992 1991 1990 1989
-------------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of
period........... $ 9.39 $ 9.11 $ 9.11 $10.38 $ 9.55 $10.00
--------- ------ ------ ------ ------ ------
Net investment
income........... 0.27 0.59 0.62 0.82 0.95 0.49
Net realized and
unrealized gain
(loss)........... (0.68) 0.27 0.01 (0.99) 0.78 (0.45)
--------- ------ ------ ------ ------ ------
Total from investment
operations......... (0.41) 0.86 0.63 (0.17) 1.73 0.04
--------- ------ ------ ------ ------ ------
Less dividends and
distributions:
Dividends from net
investment
income........... (0.24) (0.58) (0.63) (0.86) (0.90) (0.49)
Distributions to
shareholders from
net realized
gains on
investments...... -0- -0- -0- (0.24) -0- -0-
--------- ------ ------ ------ ------ ------
Total dividends and
distributions...... (0.24) (0.58) (0.63) (1.10) (0.90) (0.49)
--------- ------ ------ ------ ------ ------
Net asset value, end
of period.......... $ 8.74 $ 9.39 $ 9.11 $ 9.11 $10.38 $ 9.55
--------- ------ ------ ------ ------ ------
--------- ------ ------ ------ ------ ------
TOTAL INVESTMENT
RETURN+.............. (4.39)%(1) 9.72% 7.13% (1.75)% 19.22% 0.40%(1)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in
thousands)......... $218,307 $275,319 $324,185 $421,051 $462,709 $ 388,578
Ratio of expenses to
average net
assets............. 1.90%(2) 1.87% 1.87% 1.76% 1.81% 1.90%(2)
Ratio of net
investment income
to average net
assets............. 5.80%(2) 6.39% 6.78% 8.45% 9.76% 9.10%(2)
Portfolio turnover
rate............... 103% 229% 214% 245% 109% 113%
</TABLE>
- - - - - ---------------
* Date of commencement of operations.
+ Does not reflect the deduction of sales load.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE> 11
(This Page Intentionally Left Blank)
<PAGE> 12
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Vinh Q. Tran
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
Price Waterhouse
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
WORLD WIDE
INCOME TRUST
[PHOTO]
SEMIANNUAL REPORT
APRIL 30, 1994
<PAGE> 13
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The back cover of the Semiannual Report in the printed version contains
a picture of flags of several different Governments.
