<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TWO WORLD TRADE CENTER,
TRUST NEW YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1998
DEAR SHAREHOLDER:
The twelve-month period ended October 31, 1998, was a historic year for the
global bond markets. During the first half of this period, Asian economic
problems portended slower world economic growth and created a global preference
for U.S.-dollar-denominated assets. This preference permitted yields to decline
and bond prices to rise in most high-grade bond markets and caused continued
strengthening of the U.S. dollar. After a market consolidation through the
spring, during which market participants increasingly came to doubt whether the
Asian crisis would have any lasting effect, the crisis spread. Fears grew of an
implosion in the Japanese economy, a virtual collapse potentially in the Russian
economy, contagion effects in most developing economies, and a consensus that
even the United States and western Europe's economies would suffer a major
slowdown. As a result, equity prices in most of the world's markets fell.
GLOBAL BOND MARKET OVERVIEW
During the period under review, U.S. and German government bond markets were
exceptionally strong. These markets peaked when hedge funds, which had hedged
their exposures to lesser credits by selling short against the U.S. and German
markets, were forced out of their positions. This movement caused an explosion
in yield spreads of other fixed-income securities relative to U.S. and German
government bonds, accompanied by well-publicized problems among some hedge
funds. Consequently, these two markets soared while other high-quality markets
lagged and lesser-quality markets fell and, in some cases, plunged. During this
period the U.S. dollar fell, because it was perceived to be exposed to the risks
affecting its Latin American and Canadian trading partners, and it was thought
that the Federal Reserve Board would be forced to cut short-term rates
aggressively.
The yields on 10-year U.S. Treasury notes fell to 4.61 percent by October 31,
1998, from 5.83 percent a year earlier. At the height of the flight to quality
in early October the yield fell to a record-low of 4.16 percent. Similarly,
yields on 10-year German government bonds fell
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1998, CONTINUED
from 5.58 percent to 4.14 percent. In Japan, bond yields fell below 1 percent,
while cash yields fell close to zero.
CURRENCY MARKET OVERVIEW
The transition from a flight into U.S.-dollar-denominated assets to an
international shift away from them appears to have marked the end of a
three-year rise in the value of the dollar relative to other major currencies.
Against the deutsche mark, for example, the dollar rose from 1.73 at the end of
October 1997 to around 1.89 before dropping to below 1.60 in October 1998. While
all of the major currency exchange rates exhibited roughly similar performance
patterns, there were some crucial differences in the underlying forces affecting
these exchange rates. In the case of the deutsche mark and other major European
currencies, exchange rates appeared to be driven by classical forces such as
interest-rate differentials and the relative strength of the U.S. and European
economies. For the Japanese yen, a growing flight of capital from Japan gave way
to repatriation of it as Japanese investors became skeptical of the
international financial outlook. Other major currencies (Australian, New Zealand
and Canadian dollars and the Scandinavian currencies) were more affected by
international commodity prices, since their economies tend to be resource based.
PERFORMANCE
For the twelve-month period ended October 31, 1998, Morgan Stanley Dean Witter
World Wide Income Trust's Class B shares posted a total return of 8.61 percent.
During this period, the Fund outperformed its peer group, which returned 4.46
percent, as measured by the Lipper Global Income Funds Index (Lipper index).
During the same period, the unmanaged Lehman Brothers Global Intermediate Bond
Index (Lehman index) returned 11.62 percent. For the same period, the Fund's
Class A, C and D shares had total returns of 9.16 percent, 8.62 percent and 9.41
percent, respectively. The performance of the Fund's four share classes varies
because of differing expenses. The accompanying chart compares the performance
of the Fund's Class B shares with that of the Lipper and Lehman indexes.
PORTFOLIO STRATEGY
The evolving international situation required several strategic adjustments in
the Fund's portfolio as the fiscal year progressed. Early in the year, the
Fund's investments were largely focused on U.S. fixed-income securities. Then,
as concerns about the Asian crisis waned, it became appropriate to shift
attention to the European markets, the United Kingdom, Italy, Spain and Denmark,
and New Zealand, which had high yields. As it appeared that the Asian crisis was
spreading, the Fund's assets were concentrated in the U.S. and German government
markets for safety and price appreciation. Finally, toward the end of the fiscal
year it became apparent that we could expect at least a temporary respite in the
international situation, at which point investments were shifted to high-
2
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1998, CONTINUED
grade sectors that had lagged during the surge in the U.S. and German bond
markets. These sectors included U.S. mortgage-backed securities with yields
approximately 2 percent above that of comparable U.S. government securities,
Danish mortgages with yields approximately 2.5 percent above those of German
government securities, New Zealand dollar-denominated securities issued by the
U.S. government agency FNMA with yields ranging up to 8 percent, AA-rated banks
with yields up to 160 basis points more than comparable United Kingdom bonds and
Greek government bonds with yields above 9 percent. As the fiscal year came to a
close, each of these spreads had contracted somewhat relative to their
government benchmarks.
The Fund also shifted from its policy of hedging most of its currency exposures
during the early part of the fiscal year (in order to protect it from declines
in the values of these currencies relative to the U.S. dollar) to one of
unhedging most of its European investments. We believe this strategy will enable
the Fund to better capture currency gains if the U.S. dollar declines.
LOOKING AHEAD
In the months ahead we expect a period of greater normalcy (e.g., consolidating
interest and exchange rates), allowing the spreads in high-grade securities to
narrow relative to comparable U.S. and German government securities. This
movement would result in these securities providing the Fund with an attractive
level of income and modest capital appreciation. We also expect this period to
be followed by a renewed decline in global bond yields and value of the U.S.
dollar as the domestic economy slows and unresolved emerging market problems
result in an additional disinflationary impulse affecting the global economy.
During this period of consolidation, we anticipate investing in high-grade
securities that are currently at historically high yield levels relative to
benchmark government securities, although we will remain ready to adjust our
strategy if market conditions change.
We appreciate your ongoing support of Morgan Stanley Dean Witter World Wide
Income Trust and look forward to continuing to serve your investment needs.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
3
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME
TRUST
FUND PERFORMANCE OCTOBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 -- CLASS B
($ in Thousands)
FUND LEHMAN(4) LIPPER(5)
<S> <C> <C> <C>
March-1989 $10,000 $10,000 $10,000
October-1989 $10,040 $10,504 $10,441
October-1990 $11,969 $12,032 $11,882
October-1991 $11,759 $13,172 $13,131
October-1992 $12,598 $14,846 $14,091
October-1993 $13,822 $16,188 $16,026
October-1994 $13,271 $16,974 $15,378
October-1995 $14,923 $19,429 $17,132
October-1996 $16,802 $20,742 $19,147
October-1997 $17,987 $21,031 $20,203
October-1998 $19,535(3) $23,474 $21,109
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS B
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- -------------------------------------------------------------------------------------------------------
CLASS B SHARES* CLASS A SHARES**
- ----------------------------------------------- --------------------------------------------------
PERIOD ENDED 10/31/98 PERIOD ENDED 10/31/98
- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 8.61%(1) 3.61%(2) 1 Year 9.16%(1) 4.53%(2)
5 Years 7.16%(1) 6.87%(2) Since Inception (7/28/97) 9.14%(1) 5.44%(2)
Since Inception (3/30/89) 7.23%(1) 7.23%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES+ CLASS D SHARES++
- ----------------------------------------------------- --------------------------------------------------
PERIOD ENDED 10/31/98 PERIOD ENDED 10/31/98
- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 8.62%(1) 7.62%(2) 1 Year 9.41%(1)
Since Inception (7/28/97) 8.58%(1) 8.58%(2) Since Inception (7/28/97) 9.48%(1)
</TABLE>
- ------------------------
(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 sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value assuming a complete redemption on October 31, 1998.
(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 the
Index.
* The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%. The
CDSC declines to 0% after six years.
** The maximum front-end sales charge for Class A is 4.25%.
+ The maximum CDSC for Class C shares is 1% for shares redeemed within one year
of purchase.
++ Class D shares have no sales charge.
4
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
GOVERNMENT & CORPORATE BONDS (99.7%)
DENMARK (4.5%)
GOVERNMENT OBLIGATION
DKK 25,000 Realkredit Denmark+.......................................................... 6.00% 10/01/29 $ 3,809,569
-----------
GREECE (5.4%)
GOVERNMENT OBLIGATION
GRD 1,250,000 Greece Government Bond+...................................................... 8.70 04/08/05 4,501,779
-----------
ITALY (5.0%)
GOVERNMENT OBLIGATION
ITL 6,250,000 Italy Treasury Bond+......................................................... 10.50 07/15/00 4,242,355
-----------
NEW ZEALAND (2.3%)
EXTRA GOVERNMENTAL INSTITUTIONS--BANKS
NZD 3,500 International Bank for Reconstruction & Development+......................... 7.00 09/18/00 1,888,593
-----------
NORWAY (2.6%)
GOVERNMENT OBLIGATION
NOK 14,000 Norway Government Bond....................................................... 9.50 10/31/02 2,183,841
-----------
SPAIN (6.1%)
GOVERNMENT OBLIGATION
ESP 650,000 Spain Treasury Bond+......................................................... 12.25 03/25/00 5,154,170
-----------
UNITED KINGDOM (11.0%)
MAJOR BANKS (3.2%)
GBP 1,500 Union Bank of Switzerland+................................................... 8.00 01/08/07 2,726,399
-----------
SMALLER BANKS (7.8%)
1,000 Alliance & Leicester PLC+.................................................... 8.75 12/07/06 1,900,948
1,000 Halifax PLC+................................................................. 9.375 05/15/21 2,214,636
1,250 Lloyds TSB Group PLC+........................................................ 8.50 03/29/06 2,403,826
-----------
6,519,410
-----------
TOTAL UNITED KINGDOM............................................................................ 9,245,809
-----------
UNITED STATES (62.8%)
MAJOR BANKS (2.1%)
GBP 1,000 Morgan Guaranty Trust Co.+................................................... 7.75 12/30/03 1,769,539
-----------
GOVERNMENT AGENCIES & OBLIGATIONS (60.7%)
NZD 7,700 Federal National Mortgage Assoc.+............................................ 7.00 09/26/00 4,152,831
9,600 Federal National Mortgage Assoc.+............................................ 7.25 06/20/02 5,285,441
$ 3,064 Federal National Mortgage Assoc.............................................. 6.00 10/01/28 3,026,085
1,986 Federal National Mortgage Assoc.............................................. 6.00 10/01/28 1,960,786
10,000 Federal National Mortgage Assoc.............................................. 5.50 ** 9,628,125
8,750 U.S. Treasury Bond*.......................................................... 13.125 05/15/01 10,582,250
5,000 U.S. Treasury Bond+.......................................................... 7.25 05/15/16 6,075,550
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1998, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 10,000 U.S. Treasury Bond Strip..................................................... 0.00% 11/15/09 $ 5,674,200
4,500 U.S. Treasury Note+.......................................................... 9.125 05/15/99 4,608,584
-----------
50,993,852
-----------
TOTAL UNITED STATES............................................................................. 52,763,391
-----------
TOTAL GOVERNMENT & CORPORATE BONDS
(IDENTIFIED COST $85,102,654)................................................................... 83,789,507
-----------
SHORT-TERM INVESTMENTS (10.8%)
UNITED STATES
TIME DEPOSIT (a) (5.4%)
MAJOR BANKS
GRD 1,269,408 Bankers Trust (IDENTIFIED COST $4,285,528)................................... 11.20 11/05/98 4,517,465
-----------
GOVERNMENT AGENCY (b) (5.4%)
$ 4,600 Federal Home Loan Mortgage Corp. (AMORTIZED COST $4,599,308)................. 5.42 11/02/98 4,599,308
-----------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $8,884,836).................................................................... 9,116,773
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $93,987,490) (c).......................................................... 110.5 % 92,906,280
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS............................................. (10.5) (8,828,097)
------ ------------
NET ASSETS................................................................................. 100.0 % $ 84,078,183
------ ------------
------ ------------
</TABLE>
- ---------------------
* The market value of securities pledged to cover margin requirements for
open futures contracts is $76,500.
** Security purchased on a forward commitment basis with an approximate
principal amount and no definite maturity date; the actual principal amount
and maturity date will be determined upon settlement.
+ Some or all of these securities are segregated in connection with open
forward foreign currency contracts.
(a) Subject to withdrawal restrictions until maturity.
(b) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $1,638,802 and the
aggregate gross unrealized depreciation is $2,720,012, resulting in net
unrealized depreciation of $1,081,210.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1998, CONTINUED
FUTURES CONTRACTS OPEN AT OCTOBER 31, 1998:
<TABLE>
<CAPTION>
UNDERLYING
DESCRIPTION, FACE
NUMBER OF DELIVERY MONTH, AMOUNT AT UNREALIZED
CONTRACTS AND YEAR VALUE LOSS
- -------------------------------------------------------------------
<C> <S> <C> <C>
U.S. Treasury Note
90 December/1998..... $ 10,317,656 $ (57,656)
-------------- --------------
-------------- --------------
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCTOBER 31, 1998:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN DELIVERY APPRECIATION
TO DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -------------------------------------------------------------------
<S> <C> <C> <C>
GBP 1,900,000 $ 3,160,840 11/09/98 $ (19,887)
GBP 1,690,000 $ 2,878,915 11/16/98 50,846
NZD 4,300,000 $ 2,115,600 11/30/98 (160,877)
NZD 9,320,000 $ 4,960,850 12/02/98 26,469
GBP 1,900,000 $ 3,176,800 12/07/98 735
NOK 15,870,000 $ 2,140,256 12/07/98 (25,804)
GBP 1,095,000 $ 1,830,665 12/08/98 328
NZD 3,700,000 $ 1,948,013 12/09/98 (11,260)
NZD 3,700,000 $ 1,948,050 12/09/98 (11,223)
$ 4,252,597 CHF 5,650,000 12/15/98 (53,081)
$ 2,510,202 ATS 28,725,000 12/21/98 (34,351)
$ 2,083,637 BEF 70,812,000 12/21/98 (11,980)
$ 3,167,681 BEF 106,302,000 12/21/98 (57,738)
$ 4,017,346 NLG 7,365,000 12/21/98 (58,279)
--------------
Net unrealized depreciation.................. $ (366,102)
--------------
--------------
</TABLE>
CURRENCY ABBREVIATIONS:
<TABLE>
<S> <C>
ATS Austrian Schilling.
BEF Belgian Franc.
GBP British Pound.
DKK Danish Krone.
NLG Dutch Guilder.
GRD Greek Drachma.
ITL Italian Lira.
NZD New Zealand Dollar.
NOK Norwegian Krone.
ESP Spanish Peseta.
CHF Swiss Franc.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1998
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $93,987,490)................................................................ $92,906,280
Unrealized appreciation on open forward foreign currency contracts............................. 78,378
Cash........................................................................................... 25,127
Receivable for:
Interest................................................................................... 2,378,220
Compensated forward foreign currency contracts............................................. 57,855
Capital stock sold......................................................................... 38,038
Prepaid expenses and other assets.............................................................. 47,874
-----------
TOTAL ASSETS.............................................................................. 95,531,772
-----------
LIABILITIES:
Unrealized depreciation on open forward foreign currency contracts............................. 444,480
Payable for:
Investments purchased...................................................................... 9,810,556
Compensated forward foreign currency contracts............................................. 825,767
Capital stock repurchased.................................................................. 63,346
Variation margin........................................................................... 61,875
Plan of distribution fee................................................................... 60,387
Investment management fee.................................................................. 54,454
Accrued expenses and other payables............................................................ 132,724
-----------
TOTAL LIABILITIES......................................................................... 11,453,589
-----------
NET ASSETS................................................................................ $84,078,183
-----------
-----------
COMPOSITION OF NET ASSETS:
Paid-in-capital................................................................................ $88,543,404
Net unrealized depreciation.................................................................... (1,476,283)
Accumulated undistributed net investment income................................................ 982,035
Accumulated net realized loss.................................................................. (3,970,973)
-----------
NET ASSETS................................................................................ $84,078,183
-----------
-----------
CLASS A SHARES:
Net Assets..................................................................................... $ 1,227,088
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 134,755
NET ASSET VALUE PER SHARE................................................................. $9.11
-----------
-----------
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 4.44% OF NET ASSET VALUE)......................................... $9.51
-----------
-----------
CLASS B SHARES:
Net Assets..................................................................................... $81,610,993
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 8,949,878
NET ASSET VALUE PER SHARE................................................................. $9.12
-----------
-----------
CLASS C SHARES:
Net Assets..................................................................................... $234,143
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 25,697
NET ASSET VALUE PER SHARE................................................................. $9.11
-----------
-----------
CLASS D SHARES:
Net Assets..................................................................................... $1,005,959
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 110,347
NET ASSET VALUE PER SHARE................................................................. $9.12
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1998
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME................................................................................. $7,095,976
----------
EXPENSES
Plan of distribution fee (Class A shares)....................................................... 2,781
Plan of distribution fee (Class B shares)....................................................... 730,749
Plan of distribution fee (Class C shares)....................................................... 1,316
Investment management fee....................................................................... 658,757
Transfer agent fees and expenses................................................................ 135,049
Registration fees............................................................................... 89,418
Professional fees............................................................................... 74,129
Shareholder reports and notices................................................................. 56,479
Custodian fees.................................................................................. 28,322
Directors' fees and expenses.................................................................... 16,843
Other........................................................................................... 12,530
----------
TOTAL EXPENSES............................................................................. 1,806,373
----------
NET INVESTMENT INCOME...................................................................... 5,289,603
----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain (loss) on:
Investments................................................................................. 1,368,087
Futures contracts........................................................................... 1,389,964
Foreign exchange transactions............................................................... (842,488)
----------
NET GAIN................................................................................... 1,915,563
----------
Net change in unrealized appreciation/depreciation on:
Investments................................................................................. 143,713
Futures contracts........................................................................... (57,656)
Translation of forward foreign currency contracts, other assets and liabilities denominated
in foreign currencies..................................................................... (265,980)
----------
NET DEPRECIATION........................................................................... (179,923)
----------
NET GAIN................................................................................... 1,735,640
----------
NET INCREASE.................................................................................... $7,025,243
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY 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, 1998 OCTOBER 31, 1997*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................................................. $ 5,289,603 $ 6,295,763
Net realized gain...................................................... 1,915,563 2,422,462
Net change in unrealized depreciation.................................. (179,923 ) (1,657,235 )
---------------- -----------------
NET INCREASE...................................................... 7,025,243 7,060,990
---------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME:
Class A shares......................................................... (103,498 ) (6,031 )
Class B shares......................................................... (6,294,099 ) (10,673,831 )
Class C shares......................................................... (10,651 ) (1,171 )
Class D shares......................................................... (33,682 ) (283 )
---------------- -----------------
TOTAL DIVIDENDS................................................... (6,441,930 ) (10,681,316 )
---------------- -----------------
Net decrease from capital stock transactions........................... (11,893,088 ) (15,013,234 )
---------------- -----------------
NET DECREASE...................................................... (11,309,775 ) (18,633,560 )
NET ASSETS:
Beginning of period.................................................... 95,387,958 114,021,518
---------------- -----------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $982,035 AND
$450,900, RESPECTIVELY)............................................ $ 84,078,183 $ 95,387,958
---------------- -----------------
---------------- -----------------
</TABLE>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter World Wide Income Trust (the "Fund"), formerly Dean
Witter World Wide Income Trust, 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. On July 28, 1997,
the Fund commenced offering three additional classes of shares, with the then
current shares designated as Class B shares.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
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) 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 they will be valued at fair value as determined by
the Trustees; (3) when market quotations are not readily available, including
circumstances under which it is determined by Morgan Stanley Dean Witter
Advisors Inc. (the "Investment Manager"), formerly Dean Witter InterCapital
Inc., that sale or bid prices are not reflective of a security's market value,
portfolio securities are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the
Trustees (valuation of debt securities for which market quotations are not
readily available may be based upon current market prices of securities which
are comparable in coupon, rating and maturity or an appropriate matrix utilizing
similar factors); (4) certain portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service may utilize a
matrix system incorporating security quality, maturity and coupon as the
evaluation
11
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, CONTINUED
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 (5) short-term debt securities having a maturity date of more than sixty
days at time of purchase are valued on a mark-to-market basis until sixty days
prior to maturity and thereafter at amortized cost based on their value on the
61st day. Short-term debt securities having a maturity date of sixty days or
less at the time of purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.
C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
D. 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, U.S. Government securities or other liquid portfolio 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.
E. 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 foreign currency
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
12
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, CONTINUED
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.
F. 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.
G. 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.
H. 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 the Investment Manager the
Fund pays 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.
13
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, 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 Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager. The Fund has
adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 0.85% of
the lesser of: (a) the average daily aggregate gross sales of the Class B shares
since inception of the Fund (not including reinvestment of dividend or capital
gain distributions) less the average net asset value of the Class B shares
redeemed since the Fund's inception upon which a contingent deferred sales
charge has been imposed or waived; or (b) the average daily net assets of Class
B; and (iii) Class C -- up to 0.85% of the average daily net assets of Class C.
In the case of Class A shares, amounts paid under the Plan are paid to the
Distributor for services provided. In the case of Class B and Class C shares,
amounts paid under the Plan are paid to the Distributor for (1) services
provided and the expenses borne by it and others in the distribution of the
shares of these Classes, including the payment of commissions for sales of these
Classes and incentive compensation to, and expenses of, Morgan Stanley Dean
Witter Financial Advisors and others who engage in or support distribution of
the shares or who service shareholder accounts, including overhead and telephone
expenses; (2) printing and distribution of prospectuses and reports used in
connection with the offering of these shares to other than current shareholders;
and (3) preparation, printing and distribution of sales literature and
advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and Distributor,
and other selected broker-dealers for their opportunity costs in advancing such
amounts, which compensation would be in the form of a carrying charge on any
unreimbursed expenses.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by
14
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, CONTINUED
investors upon redemption of Class B shares. Although there is no legal
obligation for the Fund to pay expenses incurred in excess of payments made to
the Distributor under the Plan and the proceeds of contingent deferred sales
charges paid by investors upon redemption of shares, if for any reason the Plan
is terminated, the Trustees will consider at that time the manner in which to
treat such expenses. The Distributor has advised the Fund that such excess
amounts, including carrying charges, totaled $8,425,068, at October 31, 1998.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 0.85% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the year ended October 31, 1998, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.23% and
0.85%, respectively.
The Distributor has informed the Fund that for the year ended October 31, 1998,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class B shares of $44,911 and received $232 in front-end sales charges
from sales of the Fund's Class A shares. The respective shareholders pay such
charges which are not an expense of the Fund.
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, 1998 aggregated
$243,684,179 and $241,712,753, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $115,360,708 and
$135,298,741, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At October 31, 1998, the Fund had
transfer agent fees and expenses payable of approximately $1,000.
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, 1998 included
in Trustees' fees and expenses in the Statement of Operations amounted to
$2,848. At October 31, 1998, the Fund had an accrued pension liability of
$48,382 which is included in accrued expenses in the Statement of Assets and
Liabilities.
15
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, CONTINUED
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, 1998 OCTOBER 31, 1997*
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 362,853 $ 3,265,836 80,739 $ 714,181
Reinvestment of dividends........................................ 5,632 49,638 237 2,107
Redeemed......................................................... (309,381) (2,779,713) (5,325) (47,905)
----------- -------------- ----------- ------------
Net increase - Class A........................................... 59,104 535,761 75,651 668,383
----------- -------------- ----------- ------------
CLASS B SHARES
Sold............................................................. 3,566,324 31,772,971 3,523,435 31,673,600
Reinvestment of dividends........................................ 429,255 3,787,888 689,236 6,224,070
Redeemed......................................................... (5,520,553) (49,041,324) (5,959,324) (53,726,739)
----------- -------------- ----------- ------------
Net decrease - Class B........................................... (1,524,974) (13,480,465) (1,746,653) (15,829,069)
----------- -------------- ----------- ------------
CLASS C SHARES
Sold............................................................. 12,490 110,678 12,172 107,627
Reinvestment of dividends........................................ 1,027 9,061 130 1,156
Redeemed......................................................... (122) (1,111) -- --
----------- -------------- ----------- ------------
Net increase - Class C........................................... 13,395 118,628 12,302 108,783
----------- -------------- ----------- ------------
CLASS D SHARES
Sold............................................................. 109,596 964,530 4,286 38,458
Reinvestment of dividends........................................ 1,844 16,303 24 211
Redeemed......................................................... (5,403) (47,845) -- --
----------- -------------- ----------- ------------
Net increase - Class D........................................... 106,037 932,988 4,310 38,669
----------- -------------- ----------- ------------
Net decrease in Fund............................................. (1,346,438) $ (11,893,088) (1,654,390) $(15,013,234)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
- ---------------------
* For Class A, C and D shares, for the period July 28, 1997 (issue date)
through October 31, 1997.
6. FEDERAL INCOME TAX STATUS
During the year ended October 31, 1998, the Fund utilized approximately
$1,167,000 of its net capital loss carryover. At October 31, 1998, the Fund had
a net capital loss carryover of approximately $4,160,000 which will be available
through October 31, 2002 to offset future capital gains to the extent provided
by regulations.
As of October 31, 1998, 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 attributable to foreign
16
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1998, CONTINUED
currency gains. To reflect reclassifications arising from the permanent
differences, accumulated net realized loss was charged and accumulated
undistributed net investment income was credited $1,683,462.
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").
Forward contracts and 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, 1998, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions and to manage
foreign currency exposure.
8. ACQUISITION OF MORGAN STANLEY DEAN WITTER GLOBAL SHORT-TERM INCOME FUND INC.
On October 29, 1998, the Trustees of the Fund and the Board of Directors of
Morgan Stanley Dean Witter Global Short-Term Income Fund Inc. ("Global
Short-Term") approved a reorganization plan ("the Plan") whereby Global
Short-Term would be merged into the Fund. The Plan is subject to the consent of
Global Short-Term's shareholders. If approved, the assets of Global Short-Term
would be combined with the assets of the Fund and shareholders of Global
Short-Term would become Class A shareholders of the Fund, receiving Class A
shares of the Fund equal to the value of their holdings in the Fund.
17
<PAGE>
MORGAN STANLEY 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 YEAR ENDED OCTOBER 31
-------------------------------------------------------
1998++ 1997*++ 1996 1995 1994
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of
period.......... $ 9.03 $ 9.33 $ 9.08 $ 8.55 $ 9.39
----- --------- --------- ----- ---------
Net investment
income.......... 0.53 0.55 0.60 0.55 0.55
Net realized and
unrealized gain
(loss).......... 0.20 0.07 0.48 0.48 (0.92)
----- --------- --------- ----- ---------
Total from
investment
operations...... 0.73 0.62 1.08 1.03 (0.37)
----- --------- --------- ----- ---------
Less dividends
and
distributions
from:
Net investment
income........ (0.64) (0.92) (0.83) (0.50) (0.22)
Paid-in-capital... -- -- -- -- (0.25)
----- --------- --------- ----- ---------
Total dividends
and
distributions... (0.64) (0.92) (0.83) (0.50) (0.47)
----- --------- --------- ----- ---------
Net asset value,
end of period... $ 9.12 $ 9.03 $ 9.33 $ 9.08 $ 8.55
----- --------- --------- ----- ---------
----- --------- --------- ----- ---------
TOTAL INVESTMENT
RETURN+.......... 8.61% 7.05% 12.60% 12.45% (3.99)%
RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 2.07%(1) 2.02% 1.96% 1.93% 1.91%
Net investment
income.......... 6.01%(1) 6.07% 6.39% 6.21% 5.87%
SUPPLEMENTAL
DATA:
Net assets, end
of period, in
thousands....... $81,611 $94,556 $114,022 $138,165 $179,563
Portfolio
turnover rate... 309% 345% 263% 254% 229%
</TABLE>
- ---------------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated as Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
OCTOBER 31, 1998 OCTOBER 31, 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS A SHARES++
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 9.02 $ 8.97
----- -----
Net investment income................................................. 0.59 0.15
Net realized and unrealized gain...................................... 0.20 0.05
----- -----
Total from investment operations...................................... 0.79 0.20
----- -----
Less dividends from net investment income............................. (0.70) (0.15)
----- -----
Net asset value, end of period........................................ $ 9.11 $ 9.02
----- -----
----- -----
TOTAL INVESTMENT RETURN+.............................................. 9.16% 2.27%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.45%(3) 1.46%(2)
Net investment income................................................. 6.63%(3) 6.69%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $1,227 $682
Portfolio turnover rate............................................... 309% 345%
</TABLE>
<TABLE>
<S> <C> <C>
CLASS C SHARES++
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 9.02 $ 8.97
----- -----
Net investment income................................................. 0.53 0.14
Net realized and unrealized gain...................................... 0.20 0.05
----- -----
Total from investment operations...................................... 0.73 0.19
----- -----
Less dividends from net investment income............................. (0.64) (0.14)
----- -----
Net asset value, end of period........................................ $ 9.11 $ 9.02
----- -----
----- -----
TOTAL INVESTMENT RETURN+.............................................. 8.62% 2.12%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 2.07%(3) 2.00%(2)
Net investment income................................................. 6.01%(3) 5.89%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $234 $111
Portfolio turnover rate............................................... 309% 345%
</TABLE>
- ---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME TRUST
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
OCTOBER 31, 1998 OCTOBER 31, 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS D SHARES++
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 9.03 $ 8.97
----- -----
Net investment income................................................. 0.72 0.16
Net realized and unrealized gain...................................... 0.09 0.05
----- -----
Total from investment operations...................................... 0.81 0.21
----- -----
Less dividends from net investment income............................. (0.72) (0.15)
----- -----
Net asset value, end of period........................................ $ 9.12 $ 9.03
----- -----
----- -----
TOTAL INVESTMENT RETURN+.............................................. 9.41% 2.44%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.22%(3) 1.16%(2)
Net investment income................................................. 6.86%(3) 6.83%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $1,006 $39
Portfolio turnover rate............................................... 309% 345%
</TABLE>
- ---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER WORLD WIDE INCOME
TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY 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 Morgan Stanley Dean Witter World
Wide Income Trust (the "Fund"), formerly Dean Witter World Wide Income Trust, at
October 31, 1998, 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 periods presented, 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, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
NOVEMBER 20, 1998
21
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Rajesh K. Gupta
Vice President
Peter J. Seeley
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors 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.
MORGAN STANLEY
DEAN WITTER
WORLD WIDE
INCOME TRUST
[PHOTO]
ANNUAL REPORT
OCTOBER 31, 1998
