<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES TWO WORLD TRADE CENTER, NEW YORK, NEW
YORK 10048
LETTER TO THE SHAREHOLDERS APRIL 30, 1996
DEAR SHAREHOLDER:
During the six-month period ended April 30, 1996, the stock market continued its
upswing, despite a high degree of volatility. The uncertainty and fluctuations
in the domestic marketplace stemmed from several sources and the economy did
little to alleviate market skittishness. After a relatively weak fourth quarter
in 1995, the government shutdown and severe winter weather combined to delay
economic releases and foster confusion as to the true course of the economy. On
the political front, the Republican primaries temporarily deflected the focus
from a balanced budget deal to a shorter-term emphasis on jobs and flat taxes.
But probably the most damaging event to impact the stock market was the sharp
increase in long-term interest rates. The yield on the 30-year Treasury bond
jumped from 6.33 percent on October 31, 1995, to 6.89 percent on April 30, 1996.
PERFORMANCE AND PORTFOLIO ACTIVITY
Against this backdrop, Dean Witter Capital Growth Securities produced a total
return of 15.00 percent for the six-month period ended April 30, 1996, compared
to a return of 13.76 percent for the broad-based Standard & Poor's 500 Composite
Stock Price Index (S&P 500). The reason for the Fund's outperformance of the S&P
500 was the Fund's high exposure to quality, consistent growth stocks.
As discussed in our annual letter to shareholders, dated October 31, 1995, we
noticed at that time a shift in investor attention away from technology and high
performance, volatile growth stocks to high-quality, consistent growth stocks,
such as those owned in the Fund's portfolio. This trend continued through the
end of the six-month period under review, and we believe it will continue in the
months ahead.
During the past six months we have initiated a purchase of Service Corporation
common stock as this issue qualified for the portfolio under the Fund's rigorous
screening process. We sold the Fund's positions in
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS APRIL 30, 1996, CONTINUED
Rubbermaid as this holding failed the screening process, and Loral Corp., which
was acquired by Lockheed Martin. As of April 30, the Fund owned forty-five
equity issues spread among thirty-eight industry groups. On April 30, the Fund's
largest industry weightings were restaurants, foods, computer software, medical
equipment and drugs.
LOOKING AHEAD
Until recently we have experienced enormous price strength in the market. Yet in
the past month or so, we have begun to see some indications of a slowdown in
price momentum. Long-term interest rates have moved up recently and economic
indicators point to a strengthening economy.
The Fund continues to invest in the common stocks of stable, well-established
growth companies. We are convinced these companies are poised to perform
relatively well over the long term, and consequently, the Fund remains
relatively fully invested.
We look forward to continuing to serve you and your investment needs. If you
have any questions concerning your investments, please feel free to contact us.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (98.8%)
ADVERTISING (2.2%)
252,200 Interpublic Group of Companies,
Inc................................... $ 11,790,350
---------------
APPAREL (2.2%)
218,000 Cintas Corp........................... 11,717,500
---------------
AUTOMOTIVE - REPLACEMENT PARTS (2.2%)
265,200 Genuine Parts Co...................... 11,735,100
---------------
BANKING (2.2%)
205,900 Fifth Third Bancorp................... 11,350,237
---------------
BEVERAGES - ALCOHOLIC (2.2%)
170,800 Anheuser-Busch Companies, Inc......... 11,464,950
---------------
BEVERAGES - SOFT DRINKS (2.2%)
143,000 Coca Cola Co.......................... 11,654,500
---------------
BIOTECHNOLOGY (2.2%)
222,000 Medtronic Inc......................... 11,793,750
---------------
BUSINESS SYSTEMS (2.3%)
214,600 General Motors Corp. (Class E)........ 12,098,075
---------------
CHEMICALS - SPECIALTY (2.2%)
215,200 Sigma-Aldrich Corp.................... 11,620,800
---------------
COMPUTER SERVICES (2.2%)
303,600 Automatic Data Processing, Inc........ 11,802,450
---------------
COMPUTER SOFTWARE (4.6%)
159,550 Computer Associates International,
Inc................................... 11,706,981
108,000 Microsoft Corp.*...................... 12,217,500
---------------
23,924,481
---------------
CONSUMER SERVICES (2.1%)
317,800 Block (H.&R.), Inc.................... 11,162,725
---------------
COSMETICS (2.3%)
245,200 International Flavors & Fragrances
Inc................................... 12,045,450
---------------
DRUGS (4.4%)
249,500 Forest Laboratories, Inc.*............ 11,508,187
201,000 Schering-Plough Corp.................. 11,532,375
---------------
23,040,562
---------------
DRUGS & HEALTHCARE (2.2%)
281,500 Abbott Laboratories................... 11,435,937
---------------
ELECTRICAL EQUIPMENT (2.3%)
175,400 Grainger (W.W.), Inc.................. 12,102,600
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS (2.3%)
327,700 Dionex Corp.*......................... $ 11,961,050
---------------
ENTERTAINMENT (2.2%)
315,500 Circus Circus Enterprises, Inc.*...... 11,594,625
---------------
FINANCIAL - MISCELLANEOUS (2.2%)
371,000 Federal National Mortgage Assoc....... 11,361,875
---------------
FOOD WHOLESALERS (2.2%)
357,200 Sysco Corp............................ 11,475,050
---------------
FOODS (6.5%)
292,700 ConAgra, Inc.......................... 11,305,538
322,177 Tootsie Roll Industries, Inc.......... 11,437,266
216,800 Wrigley (Wm.) Jr. Co. (Class A)....... 11,409,100
---------------
34,151,904
---------------
GOLD MINING (2.2%)
380,000 Barrick Gold Corp. (Canada)........... 11,637,500
---------------
HEALTHCARE - MISCELLANEOUS (0.5%)
50,000 U.S. Healthcare, Inc.................. 2,606,250
---------------
INSURANCE (2.2%)
125,100 American International Group, Inc..... 11,431,013
---------------
MACHINERY - DIVERSIFIED (2.3%)
196,500 Thermo Electron Corp.*................ 12,109,313
---------------
MANUFACTURED HOUSING (2.1%)
600,750 Clayton Homes, Inc.................... 11,113,875
---------------
MANUFACTURING (2.3%)
452,700 Federal Signal Corp................... 11,826,788
---------------
MANUFACTURING - DIVERSIFIED (2.4%)
272,000 Sherwin-Williams Co................... 12,716,000
---------------
MEDICAL EQUIPMENT (4.6%)
815,000 Biomet, Inc.*......................... 11,919,375
258,000 Stryker Corp.......................... 12,416,250
---------------
24,335,625
---------------
PHARMACEUTICALS (2.2%)
126,500 Johnson & Johnson..................... 11,701,250
---------------
RESTAURANTS (6.6%)
669,000 Brinker International, Inc.*.......... 11,707,500
543,200 International Dairy Queen, Inc. (Class
A)*................................... 11,407,200
242,000 McDonald's Corp....................... 11,585,750
---------------
34,700,450
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------
<C> <S> <C>
RETAIL - DEPARTMENT STORES (2.4%)
517,800 Wal-Mart Stores, Inc.................. $ 12,362,475
---------------
RETAIL - DRUG STORES (2.2%)
358,800 Walgreen Co........................... 11,481,600
---------------
RETAIL - FOOD CHAINS (2.3%)
313,300 Albertson's Inc....................... 12,062,050
---------------
RETAIL - SPECIALTY (2.3%)
250,000 Home Depot, Inc....................... 11,843,750
---------------
SPECIALIZED SERVICES (2.3%)
227,000 Service Corp. International........... 12,059,375
---------------
TOBACCO (2.2%)
361,100 UST, Inc.............................. 11,555,200
---------------
UTILITIES (2.3%)
519,921 Citizens Utilities Co. (Series A)*.... 5,979,092
519,700 Citizens Utilities Co. (Series B)*.... 6,106,475
---------------
12,085,567
---------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $394,410,456)........ 518,912,052
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- --------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (1.0%)
U.S. GOVERNMENT AGENCY
$ 5,375 Federal Home Loan Mortgage Corp. 5.30%
due 05/01/96 (Amortized Cost
$5,375,000)........................... $ 5,375,000
---------------
TOTAL INVESTMENTS
(IDENTIFIED COST $399,785,456)
(B)........................... 99.8% 524,287,052
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES......... 0.2 849,300
------ --------------
NET ASSETS.................... 100.0% $ 525,136,352
------ --------------
------ --------------
<FN>
- ---------------------
* Non-income producing security.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation was $126,662,619 and the
aggregate gross unrealized depreciation was $3,386,202, resulting in net
appreciation of $123,276,417.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $399,785,456)............................ $524,287,052
Cash........................................................ 21,471
Receivable for:
Investments sold........................................ 2,309,492
Shares of beneficial interest sold...................... 587,690
Dividends............................................... 172,356
Prepaid expenses............................................ 75,482
------------
TOTAL ASSETS........................................... 527,453,543
------------
LIABILITIES:
Payable for:
Investments purchased................................... 1,098,800
Plan of distribution fee................................ 459,341
Investment management fee............................... 296,353
Shares of beneficial interest repurchased............... 262,437
Accrued expenses............................................ 200,260
------------
TOTAL LIABILITIES...................................... 2,317,191
------------
NET ASSETS:
Paid-in-capital............................................. 374,200,274
Net unrealized appreciation................................. 124,501,596
Accumulated net investment loss............................. (1,508,303)
Accumulated undistributed net realized gain................. 27,942,785
------------
NET ASSETS............................................. $525,136,352
------------
------------
NET ASSET VALUE PER SHARE,
31,712,929 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$16.56
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $3,942 foreign withholding tax)........... $ 3,173,906
Interest.................................................... 152,849
-----------
TOTAL INCOME........................................... 3,326,755
-----------
EXPENSES
Plan of distribution fee.................................... 2,587,432
Investment management fee................................... 1,671,492
Transfer agent fees and expenses............................ 403,745
Shareholder reports and notices............................. 35,640
Professional fees........................................... 32,803
Custodian fees.............................................. 18,966
Registration fees........................................... 17,028
Trustees' fees and expenses................................. 8,144
Other....................................................... 8,637
-----------
TOTAL EXPENSES......................................... 4,783,887
-----------
NET INVESTMENT LOSS.................................... (1,457,132)
-----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................... 32,289,999
Net change in unrealized appreciation....................... 40,517,103
-----------
NET GAIN............................................... 72,807,102
-----------
NET INCREASE................................................ $71,349,970
-----------
-----------
</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, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss......................................... $ (1,457,132) $ (2,027,598)
Net realized gain........................................... 32,289,999 18,302,740
Net change in unrealized appreciation....................... 40,517,103 74,477,893
------------------ ----------------
NET INCREASE........................................... 71,349,970 90,753,035
Net decrease from transactions in shares of beneficial
interest.................................................. (30,083,321) (63,860,121)
------------------ ----------------
TOTAL INCREASE......................................... 41,266,649 26,892,914
NET ASSETS:
Beginning of period......................................... 483,869,703 456,976,789
------------------ ----------------
END OF PERIOD
(INCLUDING ACCUMULATED NET INVESTMENT LOSS OF $1,508,303
AND $51,171, RESPECTIVELY).............................. $525,136,352 $483,869,703
------------------ ----------------
------------------ ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (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 and other distributions are recorded on the ex-dividend date.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.
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
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
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 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 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
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
of, the account executives of Dean Witter Reynolds Inc. ("DWR"), an affiliate of
the Investment Manager and Distributor, and other employees or selected
broker-dealers who engage in or support distribution of the Fund's shares or who
service shareholder accounts, including overhead and telephone expenses,
printing and distribution of prospectuses and reports used in connection with
the offering of the Fund's shares to other than current shareholders and
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may be compensated under the Plan for
its opportunity costs in advancing such amounts, which compensation would be in
the form of a carrying charge on any unreimbursed expenses incurred by the
Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.
The Distributor has informed the Fund that for the six months ended April 30,
1996, it received approximately $334,003 in contingent deferred sales charges
from certain redemptions of the Fund's shares.
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, 1996 aggregated
$85,442,197 and $110,585,241, respectively.
For the six months ended April 30, 1996, the Fund incurred brokerage commissions
of $97,487 with DWR for portfolio transactions executed on behalf of the Fund.
At April 30, 1996, the Fund's receivable for investments sold and payable for
investments purchased included unsettled trades with DWR of $234,492 and
$311,400, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1996, the Fund had
transfer agent fees and expenses payable of approximately $88,000.
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 six months ended April 30, 1996
<PAGE>
DEAN WITTER CAPITAL GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,157. At April 30, 1996, the Fund had an accrued pension liability of
$49,428 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
APRIL 30, 1996 FOR THE YEAR ENDED
---------------------------- OCTOBER 31, 1995
--------------------------
(UNAUDITED)
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
Sold............................................................. 3,713,656 $ 58,983,246 9,967,719 $129,676,850
Repurchased...................................................... (5,601,530) (89,066,567) (14,892,453) (193,536,971)
----------- -------------- ----------- ------------
Net decrease..................................................... (1,887,874) $ (30,083,321) (4,924,734) $(63,860,121)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
During the year ended October 31, 1995, the Fund utilized approximately
$19,249,000 of its net capital loss carryover. At October 31, 1995, the Fund had
a net capital loss carryover of approximately $3,122,000 which will be available
through October 31, 2002 to offset future capital gains to the extent provided
by regulations.
As of October 31, 1995, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to net operating loss.
<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
SIX MONTHS
ENDED
APRIL 30, FOR THE YEAR ENDED OCTOBER 31
1996 -----------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period............... $ 14.40 $ 11.86 $ 13.35 $ 14.09 $ 13.58 $ 9.19
---------- --------- --------- --------- --------- ---------
Net investment loss................ (0.05) (0.06) (0.07) (0.08) (0.03) (0.01)
Net realized and unrealized gain
(loss)............................ 2.21 2.60 -- (0.50) 0.58 4.42
---------- --------- --------- --------- --------- ---------
Total from investment operations... 2.16 2.54 (0.07) (0.58) 0.55 4.41
---------- --------- --------- --------- --------- ---------
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..... $ 16.56 $ 14.40 $ 11.86 $ 13.35 $ 14.09 $ 13.58
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 15.00%(1) 21.42% (0.79)% (4.25)% 4.06% 48.07%
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.84%(2) 1.89% 1.87% 1.81% 1.74% 1.83%
Net investment loss................ (0.56)%(2) (0.43)% (0.15)% (0.38)% (0.32)% (0.17)%
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $525,136 $483,870 $456,977 $683,165 $973,110 $600,027
Portfolio turnover rate............ 17%(1) 33% 13% 25% 29% 40%
Average commission rate paid....... $0.0502 -- -- -- -- --
<FN>
- ---------------------
+ 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
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
Peter Hermann
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Fund.
This report is not authorized for distribution to prospective investors in
the Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
CAPITAL GROWTH
SECURITIES
(LOGO)
SEMIANNUAL REPORT
APRIL 30, 1996
