<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES TWO WORLD TRADE CENTER, NEW YORK, NEW
YORK 10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to present the semiannual report to shareholders on the
operations of Dean Witter Capital Growth Securities for the six-month period
ended April 30, 1995.
As the reporting period began, the U.S. economy was showing few signs of a slow
down, despite a dramatic rise in interest rates. The Federal Reserve Board's
restrictive monetary policy was felt in both the equity and fixed-income
markets, resulting in greater volatility. However, as we entered 1995, the
economy began to show signs of a slow down. Housing starts, auto sales and
retail sales all declined. As the economic evidence mounted, the financial
markets reacted favorably to the evidence of an economic slowdown, with both the
bond and stock markets rallying. Also helping bolster the stock market was a
flight to quality which occured following the collapse in the Mexican peso and
sympathetic declines in the emerging markets. By April 30, 1995, both the Dow
Jones Industrial Average and Standard & Poor's 500 Composite Stock Price Index
had climbed to new record levels.
PERFORMANCE AND PORTFOLIO ACTIVITY
During the six-month period ended April 30, 1995, Dean Witter Capital Growth
Securities posted a total return of 11.38 percent, compared to a return of 10.51
percent for the broad stock market, as measured by the Standard & Poor's 500
Composite Stock Price Index (S&P 500).
As of April, 1995, the portfolio consisted of forty-four (44) equity issues
spread among thirty-five (35) industry groups. The Fund's largest industry
weightings at the end of the reporting period were foods (7.1 percent of the
portfolio), restaurants (7.3 percent), medical equipment (4.7 percent) and
manufacturing (4.8 percent).
During the past six months we have initiated purchases of Microsoft, American
International Group, Home Depot and US Healthcare. We sold
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS, CONTINUED
the Fund's positions in Crawford & Co. (Class B) and Banc One, as these two
issues no longer qualified for the portfolio under the Fund's screening process.
LOOKING AHEAD
We have experienced a period of unusual price strength in the securities markets
during the past six months. In view of that strength, it is possible that we
could experience periods of correction at almost any time in the near future.
However, we believe that the outlook for the economy and the securities markets,
in general, are favorable over the long term. We also are strongly convinced
that the common stocks of well-established growth companies will perform
relatively well over the longer term. Consequently, we are confident, patient
and relatively fully invested.
We appreciate your support of Dean Witter Capital Growth Securities and we look
forward to continuing to serve your investment needs.
Very truly yours,
[SIG]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (99.8%)
ADVERTISING (2.5%)
312,200 Interpublic Group of Companies,
Inc................................. $ 11,863,600
---------------
APPAREL (2.4%)
292,000 Cintas Corp......................... 11,242,000
---------------
AUTOMOTIVE - REPLACEMENT
PARTS (2.3%)
292,200 Genuine Parts Co.................... 11,322,750
---------------
BANKING (3.3%)
197,200 Central Fidelity Banks, Inc......... 5,028,600
226,600 Fifth Third Bancorp................. 10,820,150
---------------
15,848,750
---------------
BEVERAGES - ALCOHOLIC (2.4%)
199,800 Anheuser-Busch Companies, Inc....... 11,613,375
---------------
BEVERAGES - SOFT DRINKS (2.3%)
194,000 Coca Cola Co........................ 11,276,250
---------------
BUSINESS SYSTEMS (2.4%)
264,600 General Motors Corp. (Class E)...... 11,443,950
---------------
CHEMICALS - SPECIALTY (2.5%)
271,200 Sigma-Aldrich Corp.................. 12,000,600
---------------
COMPUTER SERVICES (2.5%)
182,800 Automatic Data Processing, Inc...... 11,744,900
---------------
COMPUTER SOFTWARE (2.5%)
145,000 Microsoft Corp.*.................... 11,853,750
---------------
CONSUMER SERVICES (2.4%)
277,800 Block (H.&R.), Inc.................. 11,702,325
---------------
COSMETICS (2.3%)
219,200 International Flavors & Fragrances
Inc................................. 11,261,400
---------------
DRUGS (4.6%)
250,500 Forest Laboratories, Inc. (Class
A)*................................. 11,272,500
147,000 Schering-Plough Corp................ 11,080,125
---------------
22,352,625
---------------
DRUGS & HEALTHCARE (2.4%)
293,500 Abbott Laboratories................. 11,556,562
---------------
ELECTRICAL EQUIPMENT (2.4%)
189,400 Grainger (W.W.), Inc................ 11,458,700
---------------
ELECTRONICS (2.4%)
276,600 Dionex Corp.*....................... 11,478,900
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
ENTERTAINMENT (2.4%)
347,500 Circus Circus Enterprises, Inc.*.... $ 11,510,937
---------------
FINANCIAL - MISCELLANEOUS (2.4%)
133,000 Federal National Mortgage
Association......................... 11,737,250
---------------
FOOD WHOLESALERS (2.5%)
425,200 Sysco Corp.......................... 11,905,600
---------------
FOODS (7.1%)
340,700 ConAgra, Inc........................ 11,328,275
178,092 Tootsie Roll Industries, Inc........ 11,731,811
253,800 Wrigley (Wm.) Jr. Co. (Class A)..... 11,262,375
---------------
34,322,461
---------------
GOLD MINING (2.3%)
464,000 Barrick Gold Corp. (Canada)......... 11,194,000
---------------
HEALTH CARE - MISCELLANEOUS (1.3%)
241,000 U.S. HealthCare, Inc................ 6,386,500
---------------
HOUSEWARES (2.3%)
374,400 Rubbermaid, Inc..................... 11,044,800
---------------
INSURANCE (0.7%)
32,000 American International Group,
Inc................................. 3,416,000
---------------
MACHINERY - DIVERSIFIED (2.4%)
213,000 Thermo Electron Corp.*.............. 11,475,375
---------------
MANUFACTURED HOUSING (2.4%)
690,000 Clayton Homes, Inc.................. 11,643,750
---------------
MANUFACTURING (4.8%)
514,700 Federal Signal Corp................. 11,645,088
248,000 Loral Corp.......................... 11,656,000
---------------
23,301,088
---------------
MANUFACTURING - DIVERSIFIED INDUSTRIES (2.4%)
323,000 Sherwin-Williams Co................. 11,506,875
---------------
MEDICAL EQUIPMENT (4.7%)
655,100 Biomet, Inc.*....................... 11,300,475
251,000 Stryker Corp........................ 11,263,625
---------------
22,564,100
---------------
RESTAURANTS (7.3%)
701,000 Brinker International, Inc.......... 12,004,625
611,100 International Dairy Queen, Inc.
(Class A)*.......................... 11,610,900
334,000 McDonald's Corp..................... 11,690,000
---------------
35,305,525
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
RETAIL - DEPARTMENT STORES (2.3%)
475,800 Wal-Mart Stores, Inc................ $ 11,300,250
---------------
RETAIL - DRUG STORES (2.4%)
247,400 Walgreen Co......................... 11,627,800
---------------
RETAIL - FOOD CHAINS (2.4%)
365,300 Albertson's Inc..................... 11,552,612
---------------
RETAIL - SPECIALTY (1.5%)
168,000 Home Depot, Inc..................... 7,014,000
---------------
TOBACCO (2.3%)
390,100 UST, Inc............................ 10,971,563
---------------
UTILITIES (2.3%)
550,000 Citizens Utilities Co. (Series
A)*................................. 6,737,500
362,300 Citizens Utilities Co. (Series
B)*................................. 4,483,462
---------------
11,220,962
---------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $419,744,357)...... 481,021,885
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (0.5%)
REPURCHASE AGREEMENT
$ 2,655 The Bank of New York 6.0625% due
05/01/95 (dated 04/28/95; proceeds
$2,656,085, collateralized by
$359,551 U.S. Treasury Bond 7.875%
due 02/15/21 valued at $380,778, and
$2,398,078 U.S. Treasury Note 5.50%
due 07/31/97 valued at $2,372,457)
(Identified Cost $2,654,744)........ $ 2,654,744
---------------
<C>
TOTAL INVESTMENTS
(IDENTIFIED COST
$422,399,101) (A)....................... 100.3% 483,676,629
LIABILITIES IN EXCESS OF
OTHER ASSETS............................ (0.3) (1,488,174)
----- ------------
NET ASSETS.............................. 100.0% $482,188,455
----- ------------
----- ------------
<FN>
- ---------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is $422,677,983; the
aggregate gross unrealized appreciation is $66,689,980 and the aggregate
gross unrealized depreciation is $5,691,334, resulting in net unrealized
appreciation of $60,998,646.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $422,399,101)............................ $483,676,629
Receivable for:
Investments sold........................................ 18,596,504
Shares of beneficial interest sold...................... 1,099,992
Dividends............................................... 240,629
Prepaid expenses and other assets........................... 70,631
------------
TOTAL ASSETS........................................... 503,684,385
------------
LIABILITIES:
Payable for:
Investments purchased................................... 20,265,698
Plan of distribution fee................................ 394,191
Investment management fee............................... 256,224
Shares of beneficial interest repurchased............... 252,623
Accrued expenses............................................ 327,194
------------
TOTAL LIABILITIES...................................... 21,495,930
------------
NET ASSETS:
Paid-in-capital............................................. 446,506,149
Net unrealized appreciation................................. 61,277,528
Accumulated net investment loss............................. (788,408)
Accumulated net realized loss............................... (24,806,814)
------------
NET ASSETS............................................. $482,188,455
------------
------------
NET ASSET VALUE PER SHARE,
36,514,106 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR
VALUE)....................................................
$13.21
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $2,565 foreign withholding tax)........... $ 3,436,918
Interest.................................................... 208,637
-----------
TOTAL INCOME........................................... 3,645,555
-----------
EXPENSES
Plan of distribution fee.................................... 2,255,392
Investment management fee................................... 1,466,005
Transfer agent fees and expenses............................ 500,166
Shareholder reports and notices............................. 55,869
Professional fees........................................... 30,598
Custodian fees.............................................. 27,132
Trustees' fees and expenses................................. 14,691
Registration fees........................................... 12,198
Organizational expenses..................................... 10,460
Other....................................................... 15,267
-----------
TOTAL EXPENSES......................................... 4,387,778
-----------
NET INVESTMENT LOSS.................................... (742,223)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss........................................... (2,156,860)
Net change in unrealized appreciation....................... 51,770,928
-----------
NET GAIN............................................... 49,614,068
-----------
NET INCREASE................................................ $48,871,845
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 1995 ENDED
(UNAUDITED) OCTOBER 31, 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss......................................... $ (742,223) $ (831,354)
Net realized loss........................................... (2,156,860) (22,635,036)
Net change in unrealized appreciation/depreciation.......... 51,770,928 21,479,587
------------------ ----------------
NET INCREASE (DECREASE)................................ 48,871,845 (1,986,803)
------------------ ----------------
Distributions to shareholders from net realized gain........ -- (68,486,686)
Net decrease from transactions in shares of beneficial
interest.................................................. (23,660,179) (155,714,841)
------------------ ----------------
TOTAL INCREASE (DECREASE).............................. 25,211,666 (226,188,330)
NET ASSETS:
Beginning of period......................................... 456,976,789 683,165,119
------------------ ----------------
END OF PERIOD
(INCLUDING ACCUMULATED NET INVESTMENT LOSS OF $788,408
AND $46,185, RESPECTIVELY).............................. $482,188,455 $ 456,976,789
------------------ ----------------
------------------ ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Capital Growth Securities (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund was organized as a
Massachusetts business trust on December 8, 1989 and commenced operations on
April 2, 1990.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York or American Stock Exchange is valued at its latest sale price on that
exchange prior to the time when assets are valued; if there were no sales that
day, the security is valued at the latest bid price; (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation; (3)
when market quotations are not readily available, portfolio securities are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Trustees; and (4)
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.
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily and includes discounts on certain short-term securities.
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the 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
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
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.
E. ORGANIZATIONAL EXPENSES -- Dean Witter InterCapital Inc. (the "Investment
Manager") paid the organizational expenses of the Fund in the amount of
approximately $127,100 which were fully amortized as of April 2, 1995.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays its Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.65% to the portion of daily net assets not exceeding $500
million; 0.55% to the portion of daily net assets exceeding $500 million but not
exceeding $1 billion; 0.50% to the portion of daily net assets exceeding $1
billion but not exceeding $1.5 billion; and 0.475% to the portion of daily net
assets exceeding $1.5 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.
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 1.0% 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 gain distributions) less the
average daily aggregate net asset value of the Fund's shares redeemed since the
Fund's inception upon which a contingent deferred sales charge has been imposed
or upon which such charge has been waived; or (b) the Fund's average daily net
assets. Amounts paid under the Plan are paid to the Distributor to compensate it
for the services provided
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
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, the account executives of Dean
Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, and other employees or selected dealers who engage in or support
distribution of the Fund's shares or who service shareholder accounts, including
overhead and telephone expenses, printing and distribution of prospectuses and
reports used in connection with the offering of the Fund's shares to other than
current shareholders and preparation, printing and distribution of sales
literature and advertising materials. In addition, the Distributor may be
compensated under the Plan for its opportunity costs in advancing such amounts,
which compensation would be in the form of a carrying charge on any unreimbursed
expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.
The Distributor has informed the Fund that for the six months ended April 30,
1995, it received approximately $568,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares. The Fund's shareholders pay such
charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 1995 aggregated
$84,966,677 and $99,070,593, respectively.
For the six months ended April 30, 1995, the Fund incurred brokerage commissions
of $89,440 with DWR for portfolio transactions executed on behalf of the Fund.
At April 30, 1995, the Fund's receivable for investments sold and payable for
investments purchased included unsettled trades with DWR of $2,790,877 and
$7,901,575, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $192,000.
The Fund established an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement. Benefits
under this plan are based on years of service and
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
compensation during the last five years of service. Aggregate pension costs for
the six months ended April 30, 1995, included in Trustees' fees and expenses in
the Statement of Operations amounted to $3,475. At April 30, 1995, the Fund had
an accrued pension liability of $48,565 which is included in accrued expenses in
the Statement of Assets and Liabilities.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 6,299,870 $ 79,723,436 4,146,525 $ 51,264,523
Reinvestment of distributions.................................... -- -- 5,417,749 65,717,298
----------- -------------- ----------- ------------
6,299,870 79,723,436 9,564,274 116,981,821
Repurchased...................................................... (8,311,301) (103,383,615) (22,223,330) (272,696,662)
----------- -------------- ----------- ------------
Net decrease..................................................... (2,011,431) $ (23,660,179) (12,659,056) $(155,714,841)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
At October 31, 1994, the Fund had net capital loss carryovers of approximately
$22,371,000 which will be available through October 31, 2002 to offset future
capital gains to the extent provided by regulations.
At October 31, 1994, the Fund had permanent book/tax differences primarily
attributable to net operating losses and dividend redesignations.
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS APRIL 2,
ENDED 1990*
APRIL 30, FOR THE YEAR ENDED OCTOBER 31 THROUGH
1995 ------------------------------------------ OCTOBER
(UNAUDITED) 1994 1993 1992 1991 31, 1990
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period............................ $ 11.86 $ 13.35 $ 14.09 $ 13.58 $ 9.19 $ 10.00
---------- --------- --------- --------- --------- ---------
Net investment income (loss)....... (0.02) (0.07) (0.08) (0.03) (0.01) 0.01
Net realized and unrealized gain
(loss)............................ 1.37 -- (0.50) 0.58 4.42 (0.82)
---------- --------- --------- --------- --------- ---------
Total from investment operations... 1.35 (0.07) (0.58) 0.55 4.41 (0.81)
---------- --------- --------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... -- -- -- -- (0.02) --
Net realized gain............... -- (1.42) (0.16) (0.04) -- --
---------- --------- --------- --------- --------- ---------
Total dividends and
distributions..................... -- (1.42) (0.16) (0.04) (0.02) --
---------- --------- --------- --------- --------- ---------
Net asset value, end of period..... $ 13.21 $ 11.86 $ 13.35 $ 14.09 $ 13.58 $ 9.19
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 11.38%(1) (0.79)% (4.25)% 4.06% 48.07% (8.10)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.95%(2) 1.87% 1.81% 1.74% 1.83% 1.97%(2)
Net investment income (loss)....... (0.33)%(2) (0.15)% (0.38)% (0.32)% (0.17)% 0.25%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $482,188 $456,977 $683,165 $973,110 $600,027 $206,588
Portfolio turnover rate............ 19%(1) 13% 25% 29% 40% 10%(1)
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Paul D. Vance
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospectus investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER CAPITAL GROWTH SECURITIES
[Graphic]
SEMIANNUAL REPORT
APRIL 30, 1995
