<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996
DEAR SHAREHOLDER:
The major global fixed-income markets turned in a mixed performance during the
twelve-month period ended October 31, 1996, with U.S. bonds significantly
underperforming the major bond markets in Europe and Asia as well as the bond
markets of emerging economies. At the same time, the U.S. dollar regained its
strength against the major currencies, most notably against the Japanese yen and
the German mark.
In the United States, economic growth alternated between near-recession levels
and that of rapid growth. This resulted in sharp fluctuations in interest rates.
During the first few months of the period under review, interest rates continued
to decline amid concern about the possibility of a recession. The market turned
sharply bearish in February in response to reports indicating an overheated
economy, possible inflationary pressures, and monetary tightening by the Federal
Reserve Board. As it turned out, subsequent statistics led analysts to question
the sustainability of the economy's newfound vigor, and indicated that the
pressures for inflation were very subdued. Thus, from the low point of 5.50
percent in January, yields on ten-year U.S. Treasuries increased by 1.62 percent
to 7.12 percent in early July before receding to 6.34 percent by October 31,
1996.
Meanwhile, European bond markets continued to respond to ongoing significant
progress in those countries that achieved deficit reductions and improved
inflation outlooks, most notably Italy, Spain and Sweden. These improvements
allowed European central banks to periodically reduce short-term rates, while
U.S. official rates remained unchanged. As a result, yields declined broadly
across the European markets, especially those in southern Europe (e.g., Italy
and Spain) and Sweden. Hence, ten-year yields in Italy decreased by about 3.7
percent since the beginning of the year, while yields on ten-year Spanish and
Swedish bonds declined by 3.0 percent and 2.0 percent, respectively. Yields on
ten-year bonds in Canada and Australia also declined during the year, by about
1.2 percent each, thanks to progress made on the inflation fronts.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996, CONTINUED
In the foreign exchange markets, the U.S. dollar, reacting to improving interest
rate differentials and a stronger U.S. economic outlook, appreciated against
most of the major currencies, including 10.5 percent against the Japanese yen
and 7.2 percent against the German mark. However, the dollar index, which
measures the U.S. currency's strength against a basket of currencies, registered
a more modest gain of only approximately 4 percent.
PERFORMANCE AND PORTFOLIO STRATEGY
[GRAPHIC]
Against this backdrop, Dean Witter
World Wide Income Trust has shown a
strong performance during the fiscal
year. For the twelve-month period ended
October 31, 1996, the Fund posted a
total return of 12.60 percent, compared
to a total return of 11.74 percent for
the Lipper Global Income Funds Index
(which includes many funds invested in
emerging markets' debt that have
below-investment-grade credit ratings)
and an increase of 6.75 percent for the
unhedged and unmanaged Lehman Brothers
Mutual Fund Global Intermediate Bond
Index (which does not allow for any
expenses). The Lipper Global Income
Funds Index is an equally weighted
performance index of the largest
qualifying funds (based on net assets)
in the Lipper Global Income Funds
objective.
[GRAPHIC]
During the fiscal year, the Fund paid
dividend distributions in the amount of
$0.83 per share, which included an
extra income dividend of $0.29 per
share paid on December 29, 1995. The
accompanying chart illustrates the
growth of a $10,000 investment in the
Fund from inception (March 30, 1989)
through the fiscal year ended October
31, 1996, versus the performance of a
similar investment in the issues that
comprise the Lehman Brothers Mutual
Fund Global Intermediate Bond Index and
the Lipper Global Income Funds Index.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996, CONTINUED
The Fund's performance during the fiscal year was attributable to timely moves
to protect the Fund from interest rate fluctuations and the strengthening of the
dollar, as well as to investments in markets that exhibited a continuously
improving inflation outlook and fiscal discipline. Thus, the Fund's bond
duration (a measure of sensitivity to interest rate changes) was reduced
substantially from 7 years at the end of December 1995 to 4.1 years in
mid-February as longer-term interest rates began to rise sharply. In April, the
duration was further reduced to 2.5 years. However, the Fund's duration was
brought to a neutral level at the end of the fiscal year as interest rates have
come down to a fair-valuation level and the economy seemed to be growing at a
more moderate rate.
In February, the Fund decreased its weightings to the U.S. market to 41 percent
of assets while increasing its holdings in Italy, Spain and Sweden in order to
take advantage of the higher yields available in those markets relative to the
U.S. and rising bond prices. In addition, the Fund increased its investments in
Australia and New Zealand to participate in the higher yields and stable
currencies of those markets. This strategy was maintained throughout the
remainder of the fiscal year.
Most of the currency risks of the Fund's European investments were hedged back
in to the dollar as the U.S. currency appreciated in value. As of October 31,
1996, approximately 23 percent of the Fund's assets were invested in North
America, 63 percent in Europe and 14 percent in the Pacific Basin countries.
LOOKING AHEAD
Going forward, we anticipate a continuation of the Fund's strategy of
diversifying in global markets with an emphasis on markets that exhibit
improving inflation outlooks and fiscal discipline. We believe this strategy
should allow the Fund to seek its primary objective of high current income and
its secondary objective of capital appreciation.
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 OCTOBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
GOVERNMENT & CORPORATE BONDS (83.3%)
DENMARK (4.9%)
GOVERNMENT OBLIGATION
DKr 30,600 Denmark Treasury Bond.................. 8.00% 03/15/06 $ 5,648,182
---------------
ITALY (21.8%)
FINANCE (0.9%)
ITL 1,520 M Abbey National Treasury................ 11.00 04/21/97 1,013,438
---------------
GOVERNMENT OBLIGATIONS (20.9%)
5,250 M Italy Treasury Bond+................... 10.50 07/15/00 3,799,387
8,000 M Italy Treasury Bond.................... 10.00 08/01/03 5,807,981
19,960 M Italy Treasury Bond+................... 9.50 01/01/05 14,184,664
---------------
23,792,032
---------------
TOTAL ITALY........................................................ 24,805,470
---------------
NEW ZEALAND (5.8%)
GOVERNMENT OBLIGATION
NZ$ 9,370 New Zealand Treasury Bond+............. 9.00 11/15/96 6,617,202
---------------
PORTUGAL (4.5%)
GOVERNMENT OBLIGATION
PTE 685,400 Portugal Treasury Bond+................ 11.875 02/23/00 5,112,025
---------------
SPAIN (22.1%)
GOVERNMENT OBLIGATIONS
ESP 710 M Spain Treasury Bond+................... 11.30 01/15/02 6,516,430
1,840 M Spain Treasury Bond+................... 10.30 06/15/02 16,339,408
250 M Spain Treasury Bond+................... 10.90 08/30/03 2,300,775
---------------
TOTAL SPAIN........................................................ 25,156,613
---------------
UNITED KINGDOM (4.0%)
GOVERNMENT OBLIGATION
L 2,800 United Kingdom Government Bond
(Conv.)................................ 7.00 08/06/97 4,583,510
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES (20.2%)
U.S. GOVERNMENT OBLIGATIONS
$ 10,750 U.S. Treasury Bond+.................... 13.125% 05/15/01 $ 13,729,578
4,250 U.S. Treasury Note+.................... 6.50 05/15/05 4,298,408
5,000 U.S. Treasury Note..................... 6.75 08/15/26 5,059,250
---------------
TOTAL UNITED STATES................................................ 23,087,236
---------------
TOTAL GOVERNMENT & CORPORATE BONDS
(IDENTIFIED COST $94,993,729)...................................... 95,010,238
---------------
SHORT-TERM INVESTMENTS (14.8%)
TIME DEPOSITS (a) (6.9%)
ITALY (4.0%)
BANKING - INTERNATIONAL
ITL 6,989 M Bankers Trust.......................... 7.50 11/06/96 4,602,050
---------------
NEW ZEALAND (2.7%)
BANKING - INTERNATIONAL
NZ$ 4,299 Bank of New York....................... 9.125-9.25 11/06/96 3,037,090
---------------
SPAIN (0.2%)
BANKING - INTERNATIONAL
ESP 32,777 Bank of New York....................... 6.6875 11/06/96 256,331
---------------
TOTAL TIME DEPOSITS
(IDENTIFIED COST $7,859,067)....................................... 7,895,471
---------------
GOVERNMENT & AGENCY OBLIGATIONS (b) (7.9%)
AUSTRALIA (3.7%)
Au$ 5,426 Australian Treasury Bill+.............. 6.72 12/12/96 4,262,731
---------------
NEW ZEALAND (1.2%)
NZ$ 2,000 New Zealand Treasury Bill+............. 8.52 09/17/97 1,316,618
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES (3.0%)
$ 3,400 Federal Home Loan Mortgage Corp........ 5.53% 11/01/96 $ 3,400,000
---------------
TOTAL GOVERNMENT & AGENCY OBLIGATIONS
(AMORTIZED COST $8,971,004)........................................ 8,979,349
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $16,830,071)...................................... 16,874,820
---------------
TOTAL INVESTMENTS
(IDENTIFIED COST $111,823,800) (C)........................ 98.1% 111,885,058
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............ 1.9 2,136,460
------ ---------------
NET ASSETS................................................ 100.0% $ 114,021,518
------ ---------------
------ ---------------
<FN>
- ---------------------
M In millions.
+ Some or all of these securities are segregated in connection with open
forward foreign currency contracts.
(a) Subject to withdrawal restrictions until maturity.
(b) Securities were purchased on a discount basis.The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(c) The aggregate cost for federal income tax purposes is $111,823,800; the
aggregate gross unrealized appreciation is $2,418,537 and the aggregate
gross unrealized depreciation is $2,357,279, resulting in net unrealized
appreciation of $61,258.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCTOBER 31, 1996:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION/
TO DELIVER FOR DATE DEPRECIATION
- -------------------------------------------------------------------
<S> <C> <C> <C>
$ 5,906,045 DKr 34,514,434 11/01/96 $ 13,591
Ca$ 5,253,590 $ 3,906,363 11/01/96 (20,380)
DEM 29,500,000 $ 19,619,580 04/01/97 (16,038)
NLG 10,000,000 $ 5,966,196 07/29/97 508
BEF 144,300,000 $ 4,720,577 07/31/97 (1,869)
CHF 14,000,000 $ 11,680,294 09/19/97 290,461
Y 930,000,000 $ 8,623,088 10/31/97 (6,433)
--------------
Net unrealized appreciation.................. $ 259,840
--------------
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $111,823,800)............................ $111,885,058
Unrealized appreciation on open forward foreign currency
contracts................................................. 304,560
Cash (including $15,515 in foreign currency)................ 20,042
Receivable for:
Investments sold........................................ 3,926,743
Interest................................................ 3,574,253
Compensated forward foreign currency contracts.......... 1,431,452
Shares of beneficial interest sold...................... 58,226
Prepaid expenses............................................ 18,446
------------
TOTAL ASSETS........................................... 121,218,780
------------
LIABILITIES:
Unrealized depreciation on open forward foreign currency
contracts................................................. 44,720
Payable for:
Investments purchased................................... 5,920,158
Shares of beneficial interest repurchased............... 658,240
Compensated forward foreign currency contracts.......... 267,130
Plan of distribution fee................................ 82,463
Investment management fee............................... 72,762
Accrued expenses............................................ 151,789
------------
TOTAL LIABILITIES...................................... 7,197,262
------------
NET ASSETS:
Paid-in-capital............................................. 115,494,111
Net unrealized appreciation................................. 360,875
Accumulated undistributed net investment income............. 3,202,026
Accumulated net realized loss............................... (5,035,494)
------------
NET ASSETS............................................. $114,021,518
------------
------------
NET ASSET VALUE PER SHARE,
12,221,505 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$9.33
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME (net of $276,282 foreign withholding tax)... $10,398,653
-----------
EXPENSES
Plan of distribution fee.................................... 1,058,190
Investment management fee................................... 933,697
Transfer agent fees and expenses............................ 163,442
Custodian fees.............................................. 94,625
Professional fees........................................... 91,463
Shareholder reports and notices............................. 47,568
Registration fees........................................... 28,598
Trustees' fees and expenses................................. 14,942
Other....................................................... 5,965
-----------
TOTAL EXPENSES......................................... 2,438,490
-----------
NET INVESTMENT INCOME.................................. 7,960,163
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investments............................................. 3,557,012
Futures contracts....................................... 1,350,723
Foreign exchange transactions........................... 1,611,696
-----------
NET GAIN............................................... 6,519,431
-----------
Net change in unrealized appreciation/depreciation on:
Investments............................................. (6,551)
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ 175,887
-----------
NET APPRECIATION....................................... 169,336
-----------
NET GAIN............................................... 6,688,767
-----------
NET INCREASE................................................ $14,648,930
-----------
-----------
</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 YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 7,960,163 $ 9,681,807
Net realized gain........................................... 6,519,431 4,717,657
Net change in unrealized appreciation/depreciation.......... 169,336 3,563,298
---------------- ----------------
NET INCREASE........................................... 14,648,930 17,962,762
Dividends from net investment income........................ (11,619,991) (8,838,195)
Net decrease from transactions in shares of beneficial
interest.................................................. (27,172,888) (50,521,786)
---------------- ----------------
NET DECREASE........................................... (24,143,949) (41,397,219)
NET ASSETS:
Beginning of period......................................... 138,165,467 179,562,686
---------------- ----------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$3,202,026 AND $4,260,073, RESPECTIVELY)................ $114,021,518 $138,165,467
---------------- ----------------
---------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996
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's primary investment objective
is to provide a high level of current income and, as a secondary objective,
seeks appreciation in the value of its assets. The Fund was organized as a
Massachusetts business trust on October 14, 1988 and commenced operations on
March 30, 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
these estimates. 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); (5) certain portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service utilizes a matrix
system incorporating security quality, maturity and coupon as the evaluation
model parameters, and/or research and evaluations by its staff, including review
of broker-dealer market price quotations, if available, in determining what it
believes is the fair valuation of the securities valued by such pricing service;
and (6) 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.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.
C. 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 known 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 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 currency 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.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED
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 the Investment Manager a
management fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined 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.
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.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED
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 Reynolds Inc., 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.
Although there is no legal obligation for the Fund to pay expenses incurred in
excess of payments made to the Distributor under the Plan and the proceeds of
contingent deferred sales charges paid by investors upon redemption of shares,
if for any reason the Plan is terminated, the Trustees will consider at that
time the manner in which to treat such expenses. The Distributor has advised the
Fund that such excess amounts, including carrying charges, totaled $8,308,200 at
October 31, 1996.
The Distributor has informed the Fund that for year ended October 31, 1996, it
received approximately $110,000 in contingent deferred sales charges from
certain redemptions of the Fund's shares.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, 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 year ended October 31, 1996 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Corporate Bonds.................................................. $ 13,750,152 $ 11,908,151
Foreign Government Bonds......................................... 164,103,570 152,451,489
U.S. Government and Agency Obligations........................... 120,484,768 185,167,838
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At October 31, 1996, the Fund had
transfer agent fees and expenses payable of approximately $15,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended October 31, 1996 included
in Trustees' fees and expenses in the Statement of Operations amounted to
$2,773. At October 31, 1996, the Fund had an accrued pension liability of
$49,361 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 YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 2,050,224 $ 18,600,786 1,928,605 $ 16,883,971
Reinvestment of dividends........................................ 718,178 6,456,463 548,538 4,798,502
----------- -------------- ----------- ------------
2,768,402 25,057,249 2,477,143 21,682,473
Repurchased...................................................... (5,765,210) (52,230,137) (8,258,249) (72,204,259)
----------- -------------- ----------- ------------
Net decrease..................................................... (2,996,808) $ (27,172,888) (5,781,106) $(50,521,786)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
During the year ended October 31, 1996, the Fund utilized approximately
$2,403,000 of its net capital loss carryover. At October 31, 1996, the Fund had
a net capital loss carryover of approximately $6,200,000 which will be available
through October 31, 2002 to offset future capital gains to the extent provided
by regulations.
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED
As of October 31, 1996, 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 gains.
To reflect reclassifications arising from permanent book/tax differences for the
year ended October 31, 1996, accumulated net realized loss was charged and
accumulated undistributed net investment income was credited $2,601,781.
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 October 31, 1996, there were no outstanding forward contracts other than
those used to facilitate settlement of foreign currency denominated portfolio
transactions and to manage foreign currency exposure.
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.
At October 31, 1996 investments in securities of issuers in Spain and Italy
represented 48.1% of the Fund's net assets. These investments, which involve
risks and considerations not present with respect to U.S. securities, may be
affected by economic or political developments in these regions.
<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
PERIOD
MARCH 30,
1989*
FOR THE YEAR ENDED OCTOBER 31 THROUGH
--------------------------------------------------------------------------- OCTOBER
1996 1995 1994 1993 1992 1991 1990 31, 1989
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period............... $ 9.08 $ 8.55 $ 9.39 $ 9.11 $ 9.11 $ 10.38 $ 9.55 $ 10.00
--------- --------- --------- --------- --------- --------- --------- ---------
Net investment income.............. 0.60 0.55 0.55 0.59 0.62 0.82 0.95 0.49
Net realized and unrealized gain
(loss)............................ 0.48 0.48 (0.92) 0.27 0.01 (0.99) 0.78 (0.45)
--------- --------- --------- --------- --------- --------- --------- ---------
Total from investment operations... 1.08 1.03 (0.37) 0.86 0.63 (0.17) 1.73 0.04
--------- --------- --------- --------- --------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... (0.83) (0.50) (0.22) (0.58) (0.63) (0.86) (0.90) (0.49)
Net realized gain............... -- -- -- -- -- (0.24) -- --
Paid-in-capital................. -- -- (0.25) -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total dividends and
distributions..................... (0.83) (0.50) (0.47) (0.58) (0.63) (1.10) (0.90) (0.49)
--------- --------- --------- --------- --------- --------- --------- ---------
Net asset value, end of period..... $ 9.33 $ 9.08 $ 8.55 $ 9.39 $ 9.11 $ 9.11 $ 10.38 $ 9.55
--------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 12.60% 12.45% (3.99)% 9.72% 7.13% (1.75)% 19.22% 0.40%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.96% 1.93% 1.91% 1.87% 1.87% 1.76% 1.81% 1.90%(2)
Net investment income.............. 6.39% 6.21% 5.87% 6.39% 6.78% 8.45% 9.76% 9.10%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $114,022 $138,165 $179,563 $275,319 $324,185 $421,051 $462,709 $388,578
Portfolio turnover rate............ 263% 254% 229% 229% 214% 245% 109% 113%(1)
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value of the last business day of the period.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER WORLD WIDE INCOME TRUST
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter World Wide Income Trust
(the "Fund") at October 31, 1996, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the seven years in
the period then ended and for the period March 30, 1989 (commencement of
operations) through October 31, 1989, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1996 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
DECEMBER 17, 1996
- --------------------------------------------------------------------------------
1996 FEDERAL TAX NOTICE (UNAUDITED)
For the year ended October 31, 1996, the Fund has elected,
pursuant to Section 853 of the Internal Revenue Code, to
pass-through foreign taxes of $0.02 per share to its shareholders.
The Fund generated net foreign source income of $0.42 per share
with respect to this election.
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
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
Peter J. Seeley
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
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]
ANNUAL REPORT
OCTOBER 31, 1996
<PAGE>
DEAN WITTER WORLD WIDE INCOME TRUST
GROWTH OF $10,000
LEHM BROS. GLOBAL
DATE TOTAL INTERMEDIATE BOND LIPPER IX
INDEX
- -------------------------------------------------------------------------
March 31, 1989 $10,000 $10,000 $10,000
October 31, 1989 $10,040 $10,504 $10,441
October 31, 1990 $11,969 $12,032 $11,882
October 31, 1991 $11,759 $13,172 $13,129
October 31, 1992 $12,598 $14,845 $14,089
October 31, 1993 $13,822 $16,187 $16,024
October 31, 1994 $13,271 $16,973 $15,375
October 31, 1995 $14,923 $19,429 $17,129
October 31, 1996 $16,802 (3) $20,740 $19,140
- -------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
------------------------------------------
12.60 (1) 7.40 (1) 7.08 (1)
7.60 (2) 7.10 (2) 7.08 (2)
------------------------------------------
Fund Lehman (4) LIPPER IX (5)
----- ------- -------
Past performance is not predictive of future returns.
________________________________________
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%,
5 years - 2%, since inception - 0%). See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value assuming a complete redemption on October 31, 1996.
(4) The Lehman Brothers Global Intermediate Bond Index, includes local
currency-denominated sovereign debt of 19 countries with maturities of 1 to
10 years. The performance of the index does not include any expenses, fees
or charges. The Index is unmanaged and should not be considered an
investment.
(5) The Lipper Global Income Funds Index is an equally-weighted performance
index of the largest-qualifying funds (based on net assets) in the Lipper
Global Income Funds objective. The Index, which is adjusted for capital
gains distributions and income dividends, is unmanaged and should not be
considered an investment. There are currently 30 funds represented in this
Index.
