<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
During the six-month period ended April 30, 1995, Dean Witter World Wide Income
Trust benefited from the declines of global bond yields, especially in the U.S.,
and, to a lesser extent, the rising values of the major currencies against the
dollar.
A DECLINE IN INTEREST RATES
After a year of dramatic increases in 1994, U.S. interest rates reversed
direction and declined significantly during the first four months of 1995, in
response to the perceived excessive tightening by the Federal Reserve Board and
slowdown in the growth rate of the U.S. economy. Beginning in February 1994, the
Federal Reserve Board raised the federal-funds rate seven times over a twelve
month period. However following the November 15, 1994 increase, intermediate-
and long-term interest rates began to decline. The pace of this decline
quickened after the 50 basis point hike on February 1, 1995.
By April 30, 1995, yields on U.S. 10-year Treasury notes declined by 100 basis
points from their highs in early November. Yet, three-month Treasury bills rates
stayed near the 6.0 percent level, conforming to the federal-funds rate of 6.0
percent.
During the same period, European bond markets turned in a mixed performance as
the political and budget problems continued to undermine the Southern European
countries. For example, yields on 10-year Italian government bonds rose by 113
basis points during the last six months. In the meantime, yields on 10-year
German government bonds declined by 54 basis points, bringing German 10-year
rates to the same levels as those in the U.S.
THE DECLINE OF THE U.S. DOLLAR
In the currency markets, the U.S. dollar declined sharply against the Japanese
yen and the German mark. After failing to benefit from the substantial U.S. rate
increases in 1994, the U.S. currency bore the brunt of the trade dispute between
the U.S. and Japan, reinforced by the growing monthly trade deficits the U.S.
has recorded against its major trading partners. For the six-month period, the
U.S. dollar lost 8.43 percent against the German mark and 15 percent against the
Japanese yen. Against the other major currencies, the U.S. dollar's decline was
less dramatic. Overall, the U.S. currency lost 4.7 percent on a trade-weighted
basis.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
LETTER TO SHAREHOLDERS, CONTINUED
PERFORMANCE AND PORTFOLIO
Against this backdrop, Dean Witter World Wide Income Trust has shown a strong
performance during the last six months as global interest rates declined and the
prices of the securities in the Fund's portfolio went up significantly in value.
For the six month period, the Fund had a total return of 7.35 percent. During
the reporting period, the Fund paid distributions totaling $0.245 per share.
Under the market conditions outlined above, the Fund's investment strategy was
to allocate the bulk of its assets in the North American markets, taking
advantage of higher yields, and rising bond prices: As of April 30, 1995, 75
percent of the Fund's assets were in North America, 5 percent in Europe and 20
percent in the Pacific Basin countries. A portion of the U.S. investments were
hedged back into the German mark, the Swiss franc and the Japanese yen to
protect the Fund's against the dollar's weakness. In addition, the Fund extended
its average duration (a measure of sensitivity to interest rate changes) from
2.87 years to about 6 years in mid-April, before reducing the average duration
to 4.2 years at the end of the reporting period.
LOOKING AHEAD
Going forward, we anticipate that the Fund will maintain its current strategy of
diversifying into different global markets with an emphasis on intermediate
bonds. Also, with the improving economic fundamentals in the European countries,
such as better inflation prospects and greater fiscal discipline, intermediate
bonds in these markets should offer excellent value and, therefore represent
good investment opportunities for the Fund.
We appreciate your ongoing support of Dean Witter World Wide Income Trust and
look forward to continuing to serve your investment needs.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN DESCRIPTION AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
GOVERNMENT & CORPORATE BONDS (90.1%)
CANADA (4.7%)
GOVERNMENT OBLIGATION
Ca$ 10,000 Canada Treasury Bill 09/15/96+........................... 7.75 % $ 7,370,671
---------------
FRANCE (4.6%)
GOVERNMENT OBLIGATION
FFr 35,000 French B-TAN 04/12/00+................................... 7.75 7,214,818
---------------
NEW ZEALAND (13.8%)
GOVERNMENT OBLIGATIONS
NZ$ 4,600 New Zealand Treasury Bond 11/15/95+...................... 8.00 3,075,018
9,500 New Zealand Treasury Bond 11/15/96+...................... 9.00 6,438,345
4,600 New Zealand Treasury Bond 07/15/97+...................... 10.00 3,201,165
12,000 New Zealand Treasury Bond 03/15/02+...................... 10.00 8,948,183
---------------
TOTAL NEW ZEALAND................................................... 21,662,711
---------------
UNITED KINGDOM (0.2%)
GOVERNMENT OBLIGATION
L 195 United Kingdom Treasury Gilt 05/15/96.................... 13.25 332,617
---------------
UNITED STATES (66.8%)
FINANCIAL SERVICES (2.7%)
US$ 2,000 Ford Holdings Inc. 03/01/00+............................. 9.25 2,135,060
2,000 General Motors Acceptance Corp. 04/01/00+................ 9.375 2,144,940
---------------
4,280,000
---------------
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (64.1%)
Government National Mortgage Assoc.+ (31.3%)
36,596 01/15/24-01/15/25........................................ 8.00 36,573,106
12,400 08/15/24-02/15/25........................................ 8.50 12,644,388
---------------
49,217,494
---------------
U.S. Treasury Bond+ (12.4%)
15,000 05/15/01................................................. 13.125 19,539,844
---------------
U.S. Treasury Notes+ (20.4%)
20,000 10/15/98................................................. 7.125 20,240,625
9,000 11/30/99................................................. 7.75 9,299,531
2,500 12/31/99................................................. 7.75 2,584,375
---------------
32,124,531
---------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS........................ 100,881,869
---------------
TOTAL UNITED STATES................................................. 105,161,869
---------------
TOTAL GOVERNMENT & CORPORATE BONDS
(IDENTIFIED COST $141,236,814)...................................... 141,742,686
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN DESCRIPTION AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENTS (a) (6.7%)
AUSTRALIA (5.1%)
GOVERNMENT OBLIGATION
Au$ 11,400 Australia Treasury Bill 09/27/95+........................ 7.98 % $ 8,026,305
---------------
UNITED STATES (1.6%)
GOVERNMENT AGENCY
US$ 2,500 Federal Home Loan Banks 05/01/95......................... 5.85 2,500,000
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $10,667,402)....................................... 10,526,305
---------------
TOTAL INVESTMENTS
(IDENTIFIED COST $151,904,216) (B)........ 96.8% 152,268,991
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES............................... 3.2 4,910,830
----- ------------
NET ASSETS................................ 100.0% $157,179,821
----- ------------
----- ------------
<FN>
- ---------------------
+ Some or all of these securities are segregated in connection with open
forward foreign currency contracts.
(a) Securities were purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $151,904,216; the
aggregate gross unrealized appreciation is $3,687,908 and the aggregate
gross unrealized depreciation is $3,323,133, resulting in net unrealized
appreciation of $364,775.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN EXCHANGE DELIVERY APPRECIATION/
DELIVER FOR DATE (DEPRECIATION)
- ----------------------------------------------------------
<S> <C> <C> <C>
US$ 10,453,500 NLG 16,366,000 09/06/95 $148,987
US$ 17,383,243 Y 1,500,000,000 09/29/95 822,519
US$ 17,890,048 SFr 20,000,000 10/10/95 (170,547)
US$ 7,306,737 DEM 10,000,000 10/19/95 (47,736)
US$ 10,317,606 DEM 14,050,000 12/29/95 (65,125)
US$ 15,282,562 DEM 20,850,000 12/29/95 (68,026)
-------------
Net unrealized appreciation............ $620,072
-------------
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $151,904,216)............................ $152,268,991
Unrealized appreciation on forward foreign currency
contracts................................................. 971,506
Cash (including $58,840 in foreign currency)................ 155,799
Receivable for:
Compensated forward foreign currency contracts.......... 5,316,614
Interest................................................ 2,396,071
Shares of beneficial interest sold...................... 61,750
Variation margin........................................ 35,116
Prepaid expenses and other assets........................... 1,149
------------
TOTAL ASSETS........................................... 161,206,996
------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................. 351,434
Payable for:
Compensated forward foreign currency contracts.......... 3,042,677
Shares of beneficial interest repurchased............... 267,228
Plan of distribution fee................................ 111,566
Investment management fee............................... 98,441
Accrued expenses and other payables......................... 155,829
------------
TOTAL LIABILITIES...................................... 4,027,175
------------
NET ASSETS:
Paid-in-capital............................................. 164,337,940
Net unrealized appreciation................................. 1,011,582
Distributions in excess of net investment income............ (281,240)
Accumulated net realized loss............................... (7,888,461)
------------
NET ASSETS............................................. $157,179,821
------------
------------
NET ASSET VALUE PER SHARE,
17,616,042 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$8.92
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $ 6,522,190
-----------
EXPENSES
Plan of distribution fee.................................... 691,380
Investment management fee................................... 610,042
Transfer agent fees and expenses............................ 112,772
Custodian fees.............................................. 68,098
Professional fees........................................... 47,664
Registration fees........................................... 25,898
Shareholder reports and notices............................. 18,112
Trustees' fees and expenses................................. 13,837
Other....................................................... 11,020
-----------
TOTAL EXPENSES......................................... 1,598,823
-----------
NET INVESTMENT INCOME.................................. 4,923,367
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. (2,355,546)
Futures contracts....................................... 719,353
Foreign exchange transactions........................... 3,445,225
-----------
TOTAL GAIN............................................. 1,809,032
-----------
Net change in unrealized appreciation/depreciation on:
Investments............................................. 3,428,069
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ 955,272
-----------
TOTAL APPRECIATION..................................... 4,383,341
-----------
NET GAIN............................................... 6,192,373
-----------
NET INCREASE................................................ $11,115,740
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE
APRIL 30, 1995 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1994
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 4,923,367 $ 13,160,797
Net realized gain (loss).................................... 1,809,032 (23,644,955)
Net change in unrealized depreciation....................... 4,383,341 (140,698)
-------------- ----------------
NET INCREASE (DECREASE)................................ 11,115,740 (10,624,856)
-------------- ----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................................... (4,647,760) (5,584,978)
Paid-in-capital............................................. -- (6,229,873)
-------------- ----------------
TOTAL.................................................. (4,647,760) (11,814,851)
-------------- ----------------
Net decrease from transactions in shares of beneficial
interest.................................................. (28,850,845) (73,316,664)
-------------- ----------------
TOTAL DECREASE......................................... (22,382,865) (95,756,371)
NET ASSETS:
Beginning of period......................................... 179,562,686 275,319,057
-------------- ----------------
END OF PERIOD
(INCLUDING DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME OF $281,240 AND $556,847, RESPECTIVELY).......... $ 157,179,821 $179,562,686
-------------- ----------------
-------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (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. The Fund was organized as a
Massachusetts business trust on October 14, 1988 and commenced operations on
March 30, 1989.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) all portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (2) listed options
are valued at the latest sale price on the exchange on which they are listed
unless no sales of such options have taken place that day, in which case they
will be valued at the mean between their latest bid and asked price; (3) futures
contracts are valued at the latest sale price on the commodities exchange on
which they trade unless the Trustees determine that such price does not reflect
their market value, in which case it will be valued at fair value as determined
by the Trustees; (4) when market quotations are not readily available, including
circumstances under which it is determined by 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); 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 on securities purchased are amortized over the life of the respective
securities. Interest income is accrued daily.
C. OPTIONS AND FUTURES -- (1) Written options: When the Fund writes a call or
put option, an amount equal to the premium received is included in the Fund's
Statement of Assets and Liabilities as a liability which is subsequently
marked-to-market to reflect the current market value of the option written. If a
written option either expires or the Fund enters into a closing purchase
transaction, the Fund realizes a gain or loss without regard to any unrealized
gain or loss on the underlying security or currency and the liability related to
such option is extinguished. If a written call option is exercised, the Fund
realizes a gain or loss from the sale of the underlying security or currency and
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
the proceeds from such sale are increased by the premium originally received. If
a put option which the Fund has written is exercised, the amount of the premium
originally received reduces the cost of the security which the Fund purchases
upon exercise of the option; (2) Purchased options: When the Fund purchases a
call or put option, the premium paid is recorded as an investment and is
subsequently marked-to-market to reflect the current market value. If a
purchased option expires, the Fund will realize a loss to the extent of the
premium paid. If the Fund enters into a closing sale transaction, a gain or loss
is realized for the difference between the proceeds from the sale and the cost
of the option. If a put option is exercised, the cost of the security sold upon
exercise will be increased by the premium originally paid. If a call option is
exercised, the cost of the security purchased upon exercise will be increased by
the premium originally paid; (3) Option on futures contracts: The Fund is
required to deposit U.S. Government securities as "initial margin" and
"variation margin", with respect to written call and put options on futures
contracts. If a written option expires, the Fund realizes a gain. If a written
call or put option is exercised, the premium received will decrease or increase
the unrealized loss or gain, respectively, on the future. If the Fund enters
into a closing purchase transaction, the Fund realizes a gain or loss without
regard to any unrealized gain or loss on the underlying futures contract and the
liability related to such option is extinguished; and (4) Futures contracts: A
futures contract is an agreement between two parties to buy and sell financial
instruments at a set price on a future date. Upon entering into such a contract,
the Fund is required to pledge to the broker cash or U.S. Government securities
equal to the minimum initial margin requirements of the applicable futures
exchange. Pursuant to the contract, the Fund agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in the value of the
contract which is knows as variation margin. Such receipts or payments are
recorded by the Fund as unrealized gains or losses. Upon closing of the
contract, the Fund realizes a gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed.
D. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward contracts are
translated at the exchange rates prevailing at the end of the period; and (2)
purchases, sales, income and expenses are translated at the exchange rates
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 exchange transactions. Pursuant to U.S. Federal
income tax regulations, certain foreign exchange gains/losses included in
realized and unrealized gain/loss are included in or are a reduction of ordinary
income for federal
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
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 which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized foreign currencies gain or loss. 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 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 with Dean Witter InterCapital
Inc. (the "Investment Manager"), the Fund pays its Investment Manager a
management fee, accrued 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% to the portion of daily net assets not exceeding $250
million; 0.60% to the portion of daily net assets exceeding $250 million but not
exceeding $500 million; 0.50% to the portion of daily net assets exceeding $500
million but not exceeding $750 million; 0.40% to the portion of daily net assets
exceeding $750 million but not exceeding $1 billion; and 0.30% to the portion of
daily net assets exceeding $1 billion.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (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, 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 pursuant
to which the Fund pays the Distributor compensation, accrued daily and payable
monthly, at an annual rate of 0.85% of the lesser of: (a) the average daily
aggregate gross sales of the Fund's shares since the Fund's inception (not
including reinvestment of dividend or capital gains 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
account executives of Dean Witter Reynold Inc.'s, an affiliate of the Investment
Manager and Distributor, and other employees and selected broker-dealers, 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,
1995, it received approximately $217,000 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.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (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 April 30, 1995 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Corporate Bonds......................................... $ 4,283,740 $ --
Foreign Government Bonds................................ 21,517,918 67,341,391
U.S. Government and Agencies Obligations................ 92,525,622 56,681,162
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $21,000.
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 April
30, 1995 included in Trustees' fees and expenses in the Statement of Operations
amounted to $4,350. At April 30, 1995, the Fund had an accrued pension liability
of $49,557 which is included in accrued expenses in the Statement of Assets and
Liabilities.
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, 1995 OCTOBER 31, 1994
--------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold............................................................ 1,503,593 $ 13,038,292 1,700,869 $ 15,341,706
Reinvestment of dividends....................................... 294,467 2,518,359 717,268 6,333,779
----------- ------------- ------------ -------------
1,798,060 15,556,651 2,418,137 21,675,485
Repurchased..................................................... (5,181,437) (44,407,498) (10,739,557) (94,992,149)
----------- ------------- ------------ -------------
Net decrease.................................................... (3,383,377) $ (28,850,845) (8,321,420) $ (73,316,664)
----------- ------------- ------------ -------------
----------- ------------- ------------ -------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
As of October 31, 1994, the Fund had a net capital loss carryover of
approximately $9,697,000 which will be available through October 31, 2002 to
offset future capital gains to the extent provided by regulations.
At October 31, 1994, 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.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage its foreign currency exposure or to sell, for a fixed amount of
U.S. dollars or other currency, the amount of foreign currency approximating the
value of some or all of its holdings denominated in such foreign currency or an
amount of foreign currency other than the currency in which the securities to be
hedged are denominated approximating the value of some or all of its holdings to
be hedged. Additionally, when the Investment Manager anticipates purchasing
securities at some time in the future, the Fund may enter into a forward
contract to purchase an amount of currency equal to some or all the value of the
anticipated purchase for a fixed amount of U.S. dollars or other currency.
To hedge against adverse interest rate, foreign currency and market risks, the
Fund may enter into written options on interest rate futures and interest rate
futures contracts ("derivative investments").
At April 30, 1995, there were no outstanding forward contracts other than those
used to manage foreign currency exposure associated with anticipated purchases
of foreign currency denominated securities.
These derivative instruments 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 rates underlying the
forward contracts. Risks may also arise upon entering into these contracts from
the potential inability of the counterparties to meet the terms of their
contracts.
<PAGE>
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
SIX
MONTHS
ENDED
APRIL 30, FOR THE YEAR ENDED OCTOBER 31
1995 -----------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period............... $ 8.55 $ 9.39 $ 9.11 $ 9.11 $ 10.38 $ 9.55
---------- --------- --------- --------- --------- ---------
Net investment income.............. 0.26 0.55 0.59 0.62 0.82 0.95
Net realized and unrealized gain
(loss)............................ 0.36 (0.92) 0.27 0.01 (0.99) 0.78
---------- --------- --------- --------- --------- ---------
Total from investment operations... 0.62 (0.37) 0.86 0.63 (0.17) 1.73
---------- --------- --------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... (0.25) (0.22) (0.58) (0.63) (0.86) (0.90)
Net realized gain............... -- -- -- -- (0.24) --
Paid-in-capital................. -- (0.25) -- -- -- --
---------- --------- --------- --------- --------- ---------
Total dividends and
distributions..................... (0.25) (0.47) (0.58) (0.63) (1.10) (0.90)
---------- --------- --------- --------- --------- ---------
Net asset value, end of period..... $ 8.92 $ 8.55 $ 9.39 $ 9.11 $ 9.11 $ 10.38
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 7.35%(1) (3.99)% 9.72% 7.13% (1.75)% 19.22%
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.97%(2) 1.91% 1.87% 1.87% 1.76% 1.81%
Net investment income.............. 6.05%(2) 5.87% 6.39% 6.78% 8.45% 9.76%
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $157,180 $179,563 $275,319 $324,185 $421,051 $462,709
Portfolio turnover rate............ 84%(1) 229% 229% 214% 245% 109%
<FN>
- ---------------------
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
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
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 WORLD WIDE INCOME TRUST
[Graphic]
SEMIANNUAL REPORT
APRIL 30, 1995
