<PAGE> 1
DEAN WITTER PACIFIC GROWTH FUND INC.
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - - --------------------------------------------------------------------------------
The six months ended April 30, 1994 were particularly volatile. The period
started with a sharp decline in the Japanese market and continued rapid share
price appreciation in the "TIGER" markets overall, which persisted through the
end of 1993. The first four months of 1994 culminated in a seesaw effect in the
Pacific Basin, with Japan recovering strongly and the other TIGER markets
undergoing a deep and fairly prolonged correction.
Given this scenario, Dean Witter Pacific Growth Fund provided a modest
total return of 1.88 percent for the six-month period, versus -2.30 percent for
the Standard & Poor's 500 Index (S&P 500) and 1.73 percent for the Morgan
Stanley Capital International World Index. For the trailing twelve months, the
Fund returned an impressive 34.84 percent, substantially outperforming the S&P
500 (5.31 percent) and the World Index (10.01 percent). For the twelve-month
period ended April 30, 1994, the Fund was ranked # 2 out of 29 (top 7 percent)
Pacific region funds by Lipper Analytical Services, Inc., an independent
research organization generally considered to be the leading monitor of the
mutual fund industry.
The TIGER markets began 1994 at all-time highs, with valuation levels
which, while not over stretched historically, were certainly well above the
mid-point of their historical range. This left the TIGERs relatively exposed to
the general downturn in global bond and equity markets, a condition brought on
by the Federal Reserve Board's series of tightening moves in the face of
inflationary concerns. (Between February and April, the central bank raised the
federal-funds rate -- the interest rate that banks charge each other for
overnight loans -- three times, from 3.00 percent to 3.75 percent. Subsequent to
the period under review, the Federal Reserve Board initiated another round of
tightening with a 50 basis point increase in both the federal-funds rate and the
discount rate -- the interest rate the Federal Reserve charges member banks for
loans.)
Because of the close links between the U.S. dollar and regional currencies
it was inevitable that higher U.S. interest rates would to some extent filter
through to the Pacific Basin. UK/People's Republic of China relations further
deteriorated as Hong Kong Governor Patten decided to press ahead unilaterally
with his political reform plans, and concerns became apparent regarding the
renewal of China's "most favored nation" trading status with the U.S. and the
continued overheating of the Chinese economy. Malaysia also had specific
problems to overcome as the central bank became concerned about the level of
foreign speculation in Malaysian currency, and took rather draconian action to
choke it off. Consequently, confidence in the Malaysian currency and securities
markets was undermined.
Most other TIGER markets followed these leads down, in some cases quite
sharply, although for the six-month period, several remained in positive
territory. For example, Korea posted an impressive six-month total return of
33.0 percent. This performance reflects a major turnaround in Korean earnings
growth, resulting both from strong domestic activity and excellent international
competitiveness geared toward the U.S. economic recovery.
Japan spent most of the past six-month period recovering from the sharp
November 1993 market decline. Despite this up-hill climb, Japan produced a
positive return, increasing by approximately 4.4 percent for the six-month
period. The market is currently trading, in yen terms, around the levels seen
<PAGE> 2
in mid-October last year, and still nearly 50 percent below its all-time high.
This has been a period of politically inspired volatility which, together with
the yen's continued strength, has muted and further delayed economic and
corporate earnings recovery. The Japanese market currently appears expensive,
but there remains significant upside potential as the earnings recovery
continues. The economy is now fitfully moving out of recession.
Economic recovery in both the U.S. and Japan bodes well for the TIGER
markets, and economic fundamentals remain very sound throughout the region.
Economic growth continues to average around 6.5 percent, with corporate earnings
growth in the high teens and price/earnings ratios around 20 times 1994
earnings. Companies have continued to exceed market earnings expectations thus
far in 1994, despite the difficult market conditions.
At current valuation levels, the TIGER markets are not conspicuously cheap,
but have fallen well below the middle of their historical range, and represent
good value. We view the first few months of 1994 as a period of correction
following the very strong appreciation of 1993, and remain confident regarding
the long-term prospects for investment in the Pacific Basin.
We appreciate your ongoing support of Dean Witter Pacific Growth Fund and
look forward to continuing to serve your investment objectives.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 3
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
COMMON STOCKS, WARRANTS,
RIGHTS AND BONDS (99.7%)
AUSTRALIA (2.4%)
BUILDING & CONSTRUCTION
825,000 Boral, Ltd. ............... $ 2,136,754
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
2,500,000 Fosters Brewing Group...... 2,211,850
-------------
LEISURE
1,500,000 Burnswood Property Trust... 1,755,210
-------------
METALS & MINING
200,000 Broken Hill Proprietary.... 2,425,900
200,000 CRA, Ltd. ................. 2,365,966
2,000,000 M.I.M. Holdings, Ltd. ..... 4,124,030
808,500 Western Mining Corp.
Holdings, Ltd. .......... 4,038,053
-------------
12,953,949
-------------
MULTI-INDUSTRY
800,000 Pacific Dunlop, Ltd. ...... 2,751,256
-------------
OIL RELATED
1,000,000 Santos, Ltd. .............. 2,846,865
1,000,000 Woodside Petroleum,
Ltd. .................... 3,082,320
-------------
5,929,185
-------------
TRANSPORTATION
237,250 Brambles Industries,
Ltd. .................... 2,440,986
-------------
TOTAL AUSTRALIA............ 30,179,190
-------------
HONG KONG (25.5%)
BANKING
75,000 Dao Heng Bank.............. 227,214
1,750,000 Guoco Group................ 8,099,754
1,340,000 Hang Seng Bank, Ltd. ...... 8,934,490
942,800 Hong Kong & Shanghai
Banking Corp. Holdings... 10,436,225
4,790,000 International Bank of
Asia..................... 1,984,464
-------------
29,682,147
-------------
BUILDING & CONSTRUCTION
1,800,000 Kumagai Gumi, Ltd. ........ 1,910,927
US$ 3,000M Paul Y-ITC Construction
5.0% due 2/3/01 (Conv)... 2,250,000
-------------
4,160,927
-------------
BUILDING MATERIALS
154,573 Asia Cement (GDS)+......... 3,941,611
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
COMPUTER SERVICES
5,702,000 Hanny Magnetics Holdings,
Ltd. .................... $ 1,771,725
-------------
CONGLOMERATES
2,706,000 Citic Pacific, Ltd. ....... 7,532,237
17,000,000 Guangzhou Investments...... 4,842,051
5,500,000 Hutchison Whampoa, Ltd. ... 22,608,105
1,400,200 Jardine Matheson Holdings,
Ltd. .................... 9,154,596
2,200,000 Swire Pacific, Ltd. (A
Shares).................. 15,807,872
2,500,000 Wheelock & Co. ............ 5,761,264
-------------
65,706,125
-------------
ELECTRIC UTILITIES
2,200,000 China Light & Power........ 11,464,267
1,312,631 Consolidated Electric
Power.................... 1,954,332
3,440,000 Hong Kong Electric
Holdings................. 10,154,324
-------------
23,572,923
-------------
ELECTRONICS
1,250,000 Johnson Electric Holdings,
Ltd. .................... 3,204,298
US$ 2,000M Johnson Electric Holdings,
Ltd. 4.5% due 11/5/00
(Conv)................... 1,950,000
400,000 Wo Kee Hong Holdings....... 145,003
-------------
5,299,301
-------------
INVESTMENT COMPANIES
100,000 Investment Co. of China.... 675,000
-------------
LEISURE
10,630,000 CDL Hotels International,
Ltd. .................... 4,059,878
3,000,000 Hong Kong & Shanghai
Hotels, Ltd. ............ 4,621,958
US$ 2,500M Hong Kong Resorts 4.75% due
10/18/00 (Conv).......... 2,737,500
6,422,000 Regal Hotels
International............ 1,662,869
-------------
13,082,205
-------------
LEISURE BROADCASTING
600,000 Television Broadcasts...... 2,237,183
-------------
MISCELLANEOUS
75,000 China Steel Corp (GDS)+.... 1,490,625
708,838 Dao Heng Holdings.......... 2,147,437
230,000 Shanghai Yaohua Pilk....... 206,080
3,900,000 Yizheng Chemical Fibre
Co. ..................... 1,211,807
-------------
5,055,949
-------------
</TABLE>
<PAGE> 4
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
OIL RELATED
5,592,000 Hong Kong & China Gas
Co. ..................... $ 12,018,022
60,000 Hong Kong & China Gas Co.
(Warrants 6/30/94)*...... 119,627
466,000 Hong Kong & China Gas Co.
(Warrants 12/31/95)*..... 53,092
-------------
12,190,741
-------------
REAL ESTATE
4,000,000 Amoy Properties, Ltd. ..... 5,282,237
US$ 2,000M Amoy Properties, Ltd. 5.5%
due 12/29/49 (Conv)...... 2,070,000
4,500,000 Cheung Kong Holdings....... 21,264,889
7,000,000 Great Eagle Holdings
Co. ..................... 4,123,511
2,500,000 Hang Lung Development
Co. ..................... 4,304,764
4,420,000 Henderson Investment,
Ltd. .................... 3,290,394
1,500,000 Henderson Land
Development.............. 7,379,596
3,000,000 Hong Kong Land Holdings,
Ltd. .................... 8,428,276
7,096,000 Hopewell Holdings, Ltd. ... 6,338,995
3,008,000 Hysan Development.......... 8,801,243
2,000,000 New World Development Co.,
Ltd. .................... 6,136,717
1,000,000 Ryoden Development Co. .... 330,140
3,253,500 Sun Hung Kai Properties,
Ltd.. 19,586,710
5,400,000 Tai Cheung Holdings,
Ltd. .................... 7,760,228
1,800,000 Wharf Holdings............. 6,944,588
-------------
112,042,288
-------------
RETAIL STORES
10,000,000 Dickson Concepts
International............ 6,732,263
-------------
TELECOMMUNICATIONS
13,650,000 Hong Kong
Telecommunications,
Ltd... 26,154,842
8,300,000 S. Megga International
Holdings, Ltd............ 2,417,789
-------------
28,572,631
-------------
TOTAL HONG KONG............ 314,723,019
-------------
INDONESIA (6.6%)
BANKING
2,400,000 PT Bank International
Indonesia................ 6,957,329
2,000,000 PT Panin Bank.............. 3,061,225
-------------
10,018,554
-------------
BUILDING & CONSTRUCTION
184,000 PT Semen Cibinong.......... 1,024,119
702,000 PT Semen Gresik............ 2,539,703
-------------
3,563,822
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
1,047,000 PT Hanjaya Mandala
Sampoerna................ $ 8,012,755
1,350,000 PT Sinar Mas Argo Research
& Technology Corp........ 2,989,912
-------------
11,002,667
-------------
FOREST PRODUCTS, PAPER &
PACKAGING
2,000,000 International Indorayon.... 5,102,041
3,000,000 Pab K Tjiwi Kimia.......... 6,679,036
500,000 PT Barito Pacific Timber... 2,156,772
4,866,500 PT Indah Kiat Paper Co..... 6,658,708
-------------
20,596,557
-------------
LEISURE
1,950,000 PT Jakarta International
Hotels................... 2,803,803
-------------
MANUFACTURING
3,056,500 PT Gajah Tunggal (Local)... 4,926,409
943,500 PT Gajah Tunggal........... 1,520,715
-------------
6,447,124
-------------
METALS & MINING
1,000,000 PT Kabelmetal Indonesia.... 2,736,549
-------------
MISCELLANEOUS
US$ 3,850M PT Indofoods Sukes
3.5% due 4/6/97.......... 3,857,700
1,112,000 PT United Tractors......... 2,475,696
-------------
6,333,396
-------------
PHOTOGRAPHY
750,000 PT Modern Photography &
Film..................... 2,956,865
-------------
REAL ESTATE
694,000 Modernland Realty, Ltd..... 2,253,247
3,341,000 PT Dharmala
International............ 5,811,109
1,104,000 PT Lippo Land Development.. 3,533,210
-------------
11,597,566
-------------
RETAIL STORES
430,000 PT Hero Supermarkets....... 1,047,078
-------------
TEXTILES
818,000 PT Indorama Synthetics..... 2,390,260
-------------
TOTAL INDONESIA............ 81,494,241
-------------
</TABLE>
<PAGE> 5
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
JAPAN (17.1%)
APPAREL
Y 90,000M Goldwin Inc. 2.8% due
3/31/97 (Conv)........... $ 1,020,297
-------------
AUTOMOTIVE
16,500 Autobacs Seven Co. ........ 2,123,762
98,000 Toyota Motor Corp. ........ 1,930,891
Y 50,000M Toyota Motor Corp. 1.2% due
1/28/98 (Conv)........... 539,603
-------------
4,594,256
-------------
BANKING
139,000 Asahi Bank, Ltd. .......... 1,500,099
112,000 Bank of Tokyo.............. 1,729,901
92,000 Dai-Ichi Kangyo Bank....... 1,730,693
189,000 Mitsui Trust & Banking..... 2,058,416
Y 25,000M Sanwa Bank, Ltd. 1.6% due
9/30/94 (Conv)........... 250,495
60,000 Sanwa Bank, Ltd. .......... 1,306,931
121,000 Shizuoka Bank ............. 1,593,366
68,000 Sumitomo Bank, Ltd. ....... 1,447,525
142,000 Sumitomo Trust & Banking... 1,968,317
-------------
13,585,743
-------------
BUILDING & CONSTRUCTION
35,000 Higashi Nihon House........ 1,867,822
40,000 Hosoda Corp................ 792,079
80,000 Kaneshita Construction..... 1,394,059
55,000 Maeda Road Construction.... 1,094,554
24,000 Maezawa Kaisei
Industries............... 1,682,376
Y 130,000M Penta--Ocean Construction
1.25% due 3/31/99
(Conv)................... 1,525,248
79,000 Raito Kogyo Co............. 1,916,337
48,000 Sankyo Frontier Co.,
Ltd. .................... 1,710,891
97,000 Sumitomo Forestry.......... 1,968,812
110,000 Takada Kiko Steel.......... 1,241,584
70,000 Takashimaya Kosakusho...... 831,683
44,000 Yokogawa Construction
Co....................... 1,206,733
-------------
17,232,178
-------------
BUSINESS SERVICES
70,000 Ichiken Co., Ltd. ......... 963,366
24,000 Nippon Kanzai Co. ......... 1,057,426
15,000 Nissin Co., Ltd. .......... 1,185,149
Y 100,000M Nissen Co., Ltd. 1.9% due
6/20/00 (Conv)........... 1,217,822
Y 110,000M Rinnai Corp. 1.8% due
9/30/98 (Conv)........... 1,345,050
48,000 Tanseisha Co. ............. 722,376
-------------
6,491,189
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
CHEMICALS
174,000 Mitsubishi Kasei Corp...... $ 878,614
122,000 Mitsubishi Petrochemical... 821,386
58,000 Shin-Etsu Chemical Co. .... 1,200,198
45,000 Shinto Paint Co. .......... 895,545
-------------
3,795,743
-------------
COMPUTER SERVICES
55,000 Enix Corp.................. 2,673,762
8,000 I-O Data Device, Inc....... 1,433,663
20,000 Nintendo Co. .............. 1,293,069
158,000 Nippon Comsys Co. ......... 2,221,386
46,000 Sumiya Co. ................ 1,070,297
-------------
8,692,177
-------------
COMPUTERS
230,000 Fujitsu, Ltd. ............. 2,322,772
25,000 Japan Digital Laboratory
Co., Ltd. ............... 871,287
40,000 Tecmo...................... 970,297
21,000 TKC Corp. ................. 802,574
-------------
4,966,930
-------------
CONGLOMERATES
122,000 Mitsubishi Corp. .......... 1,437,426
101,000 Takada Corp. .............. 740,000
-------------
2,177,426
-------------
ELECTRIC UTILITIES
68,000 Hokkaido Electric Power.... 1,777,426
67,000 Kyushu Electric Power...... 1,678,317
-------------
3,455,743
-------------
ELECTRONICS
70,000 Aiwa Co. .................. 1,801,980
95,000 Canon, Inc. ............... 1,551,980
202,000 Hitachi, Ltd. ............. 1,920,000
20,000 Katsuragawa Electric
Co. ..................... 465,347
35,000 Kyocera Corp. ............. 2,217,822
18,500 Mabuchi Motor Co. ......... 1,337,129
50,000 Murata Manufacturing Co.,
Ltd. .................... 2,178,218
28,000 Nihon Dempa Kogyo.......... 792,871
77,000 Omron Corp. ............... 1,227,426
45,000 Sanshin Corp. ............. 806,436
31,000 Secom Co. ................. 2,053,366
139,000 Sharp Corp. ............... 2,284,554
35,000 Sony Corp. ................ 1,996,040
41,000 Tokyo Electron............. 1,311,188
-------------
21,944,357
-------------
ENGINEERING & CONSTRUCTION
50,000 Meiden Engineering Co. .... 955,446
-------------
</TABLE>
<PAGE> 6
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
ENVIRONMENTAL CONTROL
66,000 Suido Kiko Kaisha.......... $ 1,032,475
-------------
FINANCIAL SERVICES
98,000 Daiwa Securities........... 1,542,772
44,200 Nichiei Co., Ltd.
(Kyoto).................. 3,960,495
53,000 Nomura Securities, Ltd. ... 1,159,703
37,500 Promise Co., Ltd. ......... 2,424,505
6,000 Shohkoh Fund and Co. ...... 1,045,545
-------------
10,133,020
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
40,000 Aiya Co. Ltd. ............. 1,405,941
35,000 Amway Japan................ 1,455,446
SFr 1,100M Art Life Co. 0.25% due
12/31/97 (Conv)-144A++... 826,476
25,000 Beltecno Corp. ............ 804,455
200 House Food Corp. .......... 4,238
81,000 Nippon Meat Packers........ 1,186,931
26,000 Plenus Co., Ltd. .......... 1,879,208
55,000 Sanyo Coca Cola
Bottling ................ 1,061,881
91,000 Skylark Co. ............... 2,171,386
60,000 Stamina Foods, Inc. ....... 1,455,446
35,000 Steak Miya Co. ............ 561,386
47 Yoshinoya D & C Co.,
Ltd. .................... 874,852
-------------
13,687,646
-------------
HEALTH & PERSONAL CARE
31,000 Hitachi Medical Corp. ..... 690,594
50,000 Kawasumi Laboratories,
Inc...................... 1,138,614
22,000 Ono Pharmaceutical ........ 1,119,604
55,000 Santen Pharmaceutical
Co....................... 1,470,297
20,000 Seikagaku Corp. ........... 990,099
83,000 THK Co. ................... 1,627,129
55,000 Toho Pharmaceutical ....... 871,287
56,000 Uni Charm Corp. ........... 1,607,921
-------------
9,515,545
-------------
INSURANCE
168,000 Tokio Marine & Fire
Insurance ............... 2,162,376
273,000 Yasuda Fire & Marine
Insurance ............... 2,138,050
-------------
4,300,426
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
MACHINERY
62,000 Comson Corp. .............. $ 1,246,139
7,000 DMW Corp. ................. 1,282,178
53,000 Fanuc, Ltd. ............... 2,245,941
45,000 Fuji Machine
Manufacturing............ 1,202,970
70,000 Fuso Lexel, Inc. .......... 914,851
13,200 Keyence Corp. ............. 1,411.485
130,000 Kubota Corp. .............. 863,663
180,000 Maeda Metal Industries .... 714,653
72,000 Makita Corp. .............. 1,468,515
383,000 Minebea Co. ............... 2,578,614
270,000 Mitsubishi Heavy
Industries, Ltd. ........ 1,804,455
28,000 Sankyo Engineering ........ 679,208
45,000 Sansei Yusoki Co., Ltd. ... 824,257
153,000 Seika Corp. ............... 1,166,436
-------------
18,403,365
-------------
MANUFACTURING
30,000 Catena Corp. .............. 980,198
80,000 Dai Nippon Printing Co. ... 1,386,139
400,000 Kawasaki Steel Corp. ...... 1,469,307
95,000 Nippon Electric Glass
Co. ..................... 1,711,881
273,000 Nippon Light Metal Co. .... 1,702,871
143,000 Takara Standard Co. ....... 1,911,386
68,000 Tokyo Steel
Manufacturing ........... 1,609,109
27,000 Tokyo Tekko Co. ........... 320,792
-------------
11,091,683
-------------
MISCELLANEOUS
24,000 Misumi Corp. .............. 1,038,416
23,000 Yonkyu Co., Ltd. .......... 819,802
-------------
1,858,218
-------------
NATURAL GAS
365,000 Tokyo Gas Co., Ltd. ....... 1,958,713
-------------
OIL RELATED
157,000 General Sekiyu ............ 1,927,525
186,000 Nippon Oil Co. ............ 1,325,941
-------------
3,253,466
-------------
PHARMACEUTICALS
75,000 Eisai Co., Ltd. ........... 1,299,505
SFr 1,100M Kuraya Corp. 0.5% due
3/31/98 ................. 840,250
-------------
2,139,755
-------------
PHOTOGRAPHY
65,000 Fuji P.S. Corp. ........... 746,535
-------------
</TABLE>
<PAGE> 7
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
REAL ESTATE
70,000 Chubu Sekiwa Real
Estate .................. $ 1,178,218
60,000 Kansai Sekiwa Real
Estate .................. 1,200,000
202,000 Mitsui Fudosan Co. ........ 2,460,000
6,000 Sekiwa Real Estate ........ 76,040
57,000 Tohoku Misawa Homes Co. ... 688,515
SFr 900M Tohoku Misawa Homes Co.
0.125% due 3/31/98
(Conv) .................. 682,648
-------------
6,285,421
-------------
RETAIL STORES
50,000 Aoyama Trading Co. ........ 2,326,733
39,000 Credit Saison Co., Ltd. ... 1,023,267
55,000 Home Wide Corp. ........... 1,100,000
Y 139,000M Izumi Co., Ltd. 1.7% due
8/30/02 (Conv) .......... 1,688,644
84,000 Juntendo Co. .............. 756,832
27,500 Kahma Co., Ltd. ........... 1,170,792
70,000 Kojitu Co., Ltd. .......... 963,366
Y 80,000M Olympic Sports Co. 1.75%
due 9/30/97 (Conv) ...... 742,574
33,000 Senshukai Co. ............. 1,143,564
50,000 Shimachu Co., Ltd. ........ 2,103,960
39,000 Shimano, Inc. ............. 1,030,990
Y 120,000M Tasaki Shinju Co., Ltd.
1.7% due 10/31/00
(Conv) .................. 1,428,119
19,000 Tsutsumi Jewelry .......... 2,050,495
50,000 Xebio Co. ................. 1,811,881
33,800 Yukiguni Maitake Co.,
Ltd. .................... 1,154,554
-------------
20,495,771
-------------
TELECOMMUNICATIONS
70,000 C Cube Corp. .............. 991,089
33 DDI Corp. ................. 2,443,960
15,000 Kokusai Den ............... 1,797,030
70,000 Nippon Computer Systems
Co. ..................... 1,004,950
90,000 Takamisawa Electric Co. ... 980,198
35,000 Uniden Corp. .............. 1,178,218
-------------
8,395,445
-------------
TEXTILES
190,000 Kuraray Co. ............... 2,088,119
84,000 Wacoal Corp. .............. 1,006,337
-------------
3,094,456
-------------
TRANSPORTATION
63,000 Chuo Warehouse Co. ........ 935,644
470 East Japan Railway ........ 2,242,970
158,000 Kamigumi Co. .............. 1,908,515
23,000 Kanto Seino
Transportation........... 910,891
-------------
5,998,020
-------------
TOTAL JAPAN................ 211,301,445
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
MALAYSIA (16.8%)
AGRICULTURE
2,750,000 Consolidated Plantations
Berhad .................. $ 3,755,597
-------------
AUTOMOTIVE
1,200,000 Edaran Otomobil Nasional... 7,298,507
-------------
BANKING
2,250,000 Malayan Banking Berhad..... 12,677,239
8,000,000 Public Bank Berhad......... 16,059,709
-------------
28,736,948
-------------
BUILDING & CONSTRUCTION
2,530,000 Hume Industries - Malayan
Berhad................... 9,204,291
1,658,000 Kedah Cement Holdings
Berhad................... 2,573,612
1,175,000 Metacorp Berhad............ 5,655,784
1,000,000 Sungei Way Holdings
Berhad................... 4,365,672
2,500,000 United Engineers Malaysia
Berhad................... 10,914,179
1,250,000 United Engineers Malaysia
Berhad (Rights)*......... 25,653
-------------
32,739,191
-------------
CHEMICALS
750,000 Malaysian Oxygen........... 1,930,970
-------------
CONGLOMERATES
4,735,000 Renong Berhad.............. 6,431,119
-------------
CONSTRUCTION: PLANT &
EQUIPMENT
1,200,000 YTL Corp. Berhad........... 5,507,463
-------------
ELECTRIC UTILITIES
1,500,000 Tenaga Nasional Berhad..... 8,339,552
-------------
ENTERTAINMENT
1,500,000 Genting Berhad............. 16,791,045
2,500,000 Olympia Industries
Berhad................... 3,432,836
-------------
20,223,881
-------------
</TABLE>
<PAGE> 8
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
FINANCIAL SERVICES
1,539,000 Arab Malaysian CP Mydlri... $ 3,847,500
950,000 Arab Malaysian Finance
Berhad................... 3,509,328
2,284,000 Hong Leong Credit.......... 14,914,179
285,500 Hong Leong Credit
(Rights)*................ 798,974
5,000,000 MBF Capital Berhad......... 5,074,627
3,113,000 Public Finance Berhad...... 4,878,582
4,000,000 Rashid Hussain Berhad...... 10,298,507
-------------
43,321,697
-------------
FOREST PRODUCTS,
PAPER & PACKAGING
400,000 Aokam Perdana Berhad....... 3,880,597
-------------
HOUSEHOLD APPLIANCES
712,000 Berjaya Leisure
(Units 12/31/99)......... 257,701
-------------
MANUFACTURING
3,250,000 Berjaya Group Berhad....... 3,504,664
2,316,000 Malayawata Steel Berhad.... 4,493,731
953,000 Malaysian Pacific
Industries Berhad........ 1,521,955
703,000 O.Y.L. Industries Berhad... 3,410,075
-------------
12,930,425
-------------
MISCELLANEOUS
2,250,000 Land & General Berhad...... 7,639,925
850,000 Taiping Consolidated
Berhad................... 1,585,821
-------------
9,225,746
-------------
MULTI-INDUSTRY
985,000 Time Engineering Berhad.... 3,105,690
-------------
REAL ESTATE
753,000 Hong Leong Properties...... 1,056,448
-------------
TELECOMMUNICATIONS
867,000 Technology Resource
Industries Berhad........ 3,720,336
2,000,000 Telekom Malaysia........... 14,925,373
-------------
18,645,709
-------------
TOTAL MALAYSIA............. 207,387,241
-------------
PHILIPPINES (2.7%)
BANKING
135,000 Philippine National Bank... 2,464,853
-------------
BUILDING & CONSTRUCTION
399,900 Bacnotan Consolidated
Industries............... 3,650,721
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO
& HOUSEHOLD PRODUCTS
710,000 San Miguel Corp. (B
Shares).................. $ 6,248,311
-------------
MISCELLANEOUS
1,800,000 First Philippine Holding... 6,638,671
20,000 JG Summit Holdings
(B Shares) (GDS)+........ 720,000
-------------
7,358,671
-------------
PHARMACEUTICAL
5,750,000 Metro Pacific Corp.
(Class B)................ 881,870
-------------
REAL ESTATE
US$ 2,000M Filinvest Development 3.75%
due 2/28/04 (Conv)....... 1,680,000
15,000,000 FiIinvest Land, Inc. ...... 4,108,088
-------------
5,788,088
-------------
TELECOMMUNICATIONS
88,000 Philippine Long Distance
Telephone................ 5,709,000
6,000,000 Philippine Telephone &
Telegraph................ 1,621,325
-------------
7,330,325
-------------
TOTAL PHILIPPINES.......... 33,722,839
-------------
SINGAPORE (13.6%)
BANKING
1,672,250 Development Bank of
Singapore, Ltd. ......... 16,462,119
1,450,000 Overseas Chinese Banking
Corp., Ltd. ............. 13,247,973
700,000 Overseas Union Bank........ 3,558,101
800,000 United Overseas Bank,
Ltd. .................... 6,948,913
-------------
40,217,106
-------------
ELECTRONICS
247,500 Creative Technology........ 5,630,625
2,784,000 Datapulse Technology,
Ltd. .................... 1,441,977
1,070,000 Eltech Electronic.......... 609,285
-------------
7,681,887
-------------
FINANCE
1,237,000 Hong Leong Finance,
Ltd. .................... 3,533,831
250,000 Hong Leong Finance, Ltd.
(Rights)*................ 283,104
-------------
3,816,935
-------------
</TABLE>
<PAGE> 9
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO
& HOUSEHOLD PRODUCTS
1,000,000 Fraser & Neave, Ltd. ...... $ 12,096,255
52,000 Fraser & Neave, Ltd.
(Warrants 5/27/98)*...... 324,540
-------------
12,420,795
-------------
LEISURE
1,572,000 Kings Hotels (A Shares).... 2,326,342
2,602,000 Marco Polo Developments,
Ltd. .................... 3,683,181
1,268,000 Overseas Union
Enterprise............... 6,118,904
250,000 Republic Hotels &
Resorts.................. 369,965
-------------
12,498,392
-------------
MACHINERY
915,000 Van Der Horst.............. 4,356,582
-------------
METALS & MINING
1,626,000 Amtek Engineering, Ltd. ... 2,877,043
1,025,000 Natsteel, Ltd. ............ 3,495,367
-------------
6,372,410
-------------
PUBLISHING
400,000 Singapore Press Holdings... 6,562,862
-------------
REAL ESTATE
108,000 Bukit Sembawang Estates.... 1,876,206
3,000,000 City Developments, Ltd. ... 15,152,490
162,000 City Developments, Ltd.
(Warrants 7/18/98)*...... 500,322
4,000,000 DBS Land................... 12,302,149
3,750,000 Liang Court Holdings,
Ltd. .................... 3,643,353
1,250,000 Singapore Land............. 5,951,615
4,334,000 United Overseas Land,
Ltd. .................... 5,995,432
3,000,000 Wing Tai Holdings, Ltd. ... 5,173,080
-------------
50,594,647
-------------
RETAIL STORES
1,500,000 Metro Holdings............. 4,439,583
-------------
SHIPBUILDING
800,000 Far East Levingston........ 3,371,509
449,000 Jurong Shipyard, Ltd. ..... 4,304,530
530,000 Sembawang Maritime......... 2,404,131
1,050,000 Sembawang Shipyard,
Ltd. .................... 8,444,859
-------------
18,525,029
-------------
TOTAL SINGAPORE............ 167,486,228
-------------
SOUTH KOREA (4.7%)
BANKING
102,670 Kangwon Bank............... 1,157,024
45,764 Kangwon Bank (Rights)*..... 85,011
-------------
1,242,035
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
BUILDING & CONSTRUCTION
92,201 Dong-Ah Construction....... $ 3,996,328
62,000 Dongkuk Steel Mill Co. .... 2,149,845
-------------
6,146,173
-------------
ELECTRONICS
5,562 Samsung Electronics
(Non-Voting) (GDS)+...... 359,444
110,000 Samsung Electronics
(GDS)+................... 7,108,750
SFr 3,000M Yukong Ltd. 1.0% due
12/31/98 (Conv).......... 4,851,521
-------------
12,319,715
-------------
FINANCIAL SERVICES
180,540 Sang Up Securities Co. .... 4,628,084
-------------
INVESTMENT COMPANIES
165,000 Clemente Korea Emerging
Growth Fund.............. 2,021,250
-------------
MANUFACTURING
140,000 Dongbu Steel Co. .......... 4,715,789
88,000 Kumho & Co., Inc. ......... 1,340,433
-------------
6,056,222
-------------
METALS & MINING
350,000 Poongsan Corp. ............ 5,981,424
-------------
MISCELLANEOUS
70,000 Pacific Chemical........... 2,349,226
US$ 3,000M Sangyong Oil 3.75% due
12/31/08 (Conv).......... 3,517,500
-------------
5,866,726
-------------
MULTI-INDUSTRY
SFr 2,750M Daewoo Corp. 3.25% due
12/31/97 (Conv).......... 3,089,445
US$ 1,500M Daewoo Corp. 0.25% due
12/31/08 (Conv).......... 2,002,500
US$ 2,400M Daewoo Electronics 3.5% due
12/31/07 (Conv).......... 4,116,000
-------------
9,207,945
-------------
TEXTILES
US$ 2,050M Kolon International Corp.
1.0% due 12/31/08
(Conv)................... 2,357,500
-------------
TRANSPORTATION
84,460 Han Jin Transportation..... 2,290,618
-------------
TOTAL SOUTH KOREA.......... 58,117,692
-------------
</TABLE>
<PAGE> 10
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
TAIWAN (2.4%)
BUILDING & CONSTRUCTION
SFr 3,000M Pacific Construction 2.125%
due 10/1/98 (Conv)....... $ 2,618,962
-------------
INVESTMENT COMPANIES
105,000 Formosa Growth Fund........ 1,391,250
515 Formosa Growth Fund
(Units).................. 4,326,000
738,000 Invesco International
Taiwan Growth Fund....... 4,575,600
120 Taipei Fund................ 8,280,000
360,000 Taiwan Capital Fund........ 3,330,000
-------------
21,902,850
-------------
MULTI-INDUSTRY
82,723 President Enterprise Corp.
(GDR)+................... 1,654,460
-------------
TEXTILES
US$ 1,500M Far Eastern Textile 4.0%
due 10/7/06 (Conv)....... 1,770,000
124,500 Tuntex Distinct (GDS)+..... 1,532,595
-------------
3,302,595
-------------
TRANSPORTATION
US$ 600,000 U-Ming Marine Holdings 1.5%
due 2/7/01 (Conv)........ 573,000
-------------
TOTAL TAIWAN............... 30,051,867
-------------
THAILAND (7.9%)
AUTOMOTIVE
307,500 Swedish Motors............. 3,371,871
-------------
BANKING
376,200 Bangkok Bank............... 2,839,809
5,685,713 Siam City Bank............. 4,291,957
1,200,000 Thai Farmers Bank.......... 6,197,855
2,293,400 Thai Military Bank,
Ltd. .................... 6,469,265
-------------
19,798,886
-------------
BUILDING & CONSTRUCTION
1,805,000 NTS Steel Group Co., Ltd
........................ 4,948,152
129,300 Siam Cement Co. ........... 5,630,226
225,000 Siam City Cement Co.,
Ltd. .................... 3,647,199
1,122,400 Thai - German Ceramics..... 7,580,770
590,000 Tipco Asphalt Co. ......... 6,141,438
5,900 Tipco Asphalt Co (Units)... 234,406
-------------
28,182,191
-------------
<CAPTION>
Shares/Principal
Amount Value
-------------
<C> <S> <C>
FINANCIAL SERVICES
600,000 General Finance &
Securities............... $ 5,387,366
US$ 1,900M Phatra Thanakit Co., Ltd.
3.5% due 12/13/03
(Conv)................... 1,952,250
6,200 Phatra Thanakit Co.,
Ltd. .................... 209,867
9,840,300 Ruang Khao Fund 2.......... 4,495,965
140,000 Securities One, Ltd. ...... 3,671,037
-------------
15,716,485
-------------
FOOD, BEVERAGE, TOBACCO
& HOUSEHOLD PRODUCTS
516,000 CP Feedmill Co. ........... 3,280,095
400,000 Modern Form Group Co.,
Ltd. .................... 2,669,845
-------------
5,949,940
-------------
FOREST PRODUCTS, PAPER &
PACKAGING
925,000 Siam Pulp & Paper Co. ..... 2,535,757
-------------
LEISURE
2,818,700 Dusit Thani Corp. ......... 5,039,392
-------------
REAL ESTATE
500,000 Juldis Development Co.,
Ltd. .................... 3,039,333
1,066,666 Krisda Mahanakorn Co. ..... 2,754,601
435,000 MDX Co., Ltd. ............. 2,626,937
-------------
8,420,871
-------------
TELECOMMUNICATIONS
101,500 Advanced Information
Services................. 3,871,275
700,000 Telecomasia Corp. ......... 2,753,278
-------------
6,624,553
-------------
TRANSPORTATION
80,000 Regional Container Line.... 1,665,475
-------------
TOTAL THAILAND............. 97,305,421
-------------
TOTAL COMMON STOCKS,
WARRANTS, RIGHTS AND BONDS
(IDENTIFIED COST $1,116,327,420)........ 1,231,769,183
--------------
</TABLE>
<PAGE> 11
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS April 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Principal
Amount Value
- - - ---------------- --------------
U.S. GOVERNMENT AGENCY(A) (1.1%)
UNITED STATES (1.1%)
$ 13,700 M Federal Home Loan
Mortgage Corp., 3.5%
due 5/2/94 (Amortized
Cost $13,698,668)...... $ 13,698,668
--------------
PURCHASED PUT OPTIONS ON FOREIGN
CURRENCY (0.1%)
Currency Expiration Date/
Amount (in Exercise Price
thousands) -------------------------
- - - ----------------
Y6,901,000 May 12,1994/Y103.................. 134,000
Y3,605,000 August 12, 1994/Y103.............. 231,000
Y1,545,000 August 15, 1994/Y103.............. 150,000
Y4,456,950 August 15, 1994/Y103.65........... 382,700
Y 520,500 September 5, 1994/Y104.10......... 35,500
Y1,530,900 October 31, 1994/Y102.06.......... 123,000
-------
<CAPTION>
Value
--------------
<S> <C> <C>
TOTAL PURCHASED PUT OPTIONS ON
FOREIGN CURRENCY
(IDENTIFIED COST $3,508,450)............ $ 1,056,200
--------------
TOTAL INVESTMENTS (IDENTIFIED
COST $1,133,534,538) (B)........ 100.9%
1,246,524,051
LIABILITIES IN EXCESS OF
CASH AND OTHER ASSETS (0.9) (11,163,401)
----- --------------
NET ASSETS........................ 100.0% $1,235,360,650
====== ==============
</TABLE>
- - - ---------------
<TABLE>
<S> <C>
* Non-income producing.
+ Global Depository Receipts/Shares.
++ Resale is restricted to qualified institutional investors.
(a) U.S. Government Agency was purchased on a discount basis. The interest rate shown has been adjusted to reflect
a bond equivalent yield.
(b) The aggregate cost for federal income tax purposes is $1,133,535,936; the aggregate gross unrealized
appreciation is $178,454,582 and the aggregate gross unrealized depreciation is $65,466,467, resulting in net
unrealized appreciation of $112,988,115.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1994:
<TABLE>
<CAPTION>
Contracts In Exchange Delivery Unrealized
to Receive for Date Appreciation
- - - ----------------- -------------- --------- ------------
<S> <C> <C> <C> <C>
IDR 5,849,292,788 US$ 2,710,516 5/2/94 $ 2,514
Y 453,513,806 US$ 4,439,685 5/2/94 50,551
IDR 3,125,443,178 US$ 1,448,305 5/3/94 1,344
MYR 1,250,000 US$ 465,203 5/3/94 1,215
THB 10,666,640 US$ 422,944 5/3/94 840
THB 5,728,417 US$ 227,318 5/3/94 271
Y 325,099,980 US$ 3,188,192 5/6/94 30,619
------------
Net Unrealized Appreciation............. ...................... $ 87,354
===========
</TABLE>
See Notes to Financial Statements
<PAGE> 12
DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION April 30, 1994 (unaudited)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent of
Industry Value Net Assets
-------------- -----------
<S> <C> <C>
Agriculture............................................................. $ 3,755,597 0.3%
Apparel................................................................. 1,020,297 0.1
Automotive.............................................................. 15,264,634 1.2
Banking................................................................. 145,746,272 11.8
Building & Construction................................................. 100,430,919 8.1
Building Materials...................................................... 3,941,611 0.3
Business Services....................................................... 6,491,189 0.5
Chemicals............................................................... 5,726,713 0.5
Computer Services....................................................... 10,463,902 0.8
Computers............................................................... 4,966,930 0.4
Conglomerates........................................................... 74,314,670 6.0
Construction: Plant & Equipment......................................... 5,507,463 0.4
Electric Utilities...................................................... 35,368,218 2.9
Electronics............................................................. 47,245,260 3.9
Engineering & Construction.............................................. 955,446 0.1
Entertainment........................................................... 20,223,881 1.6
Environmental Control................................................... 1,032,475 0.1
Finance................................................................. 3,816,935 0.3
Financial Services...................................................... 73,799,286 6.0
Food, Beverage, Tobacco & Household Products............................ 51,521,209 4.2
Foreign Government (Put Options)........................................ 1,056,200 0.1
Forest Products, Paper & Packaging...................................... 27,012,911 2.2
Health & Personal Care.................................................. 9,515,545 0.8
Household Appliances.................................................... 257,701 0.0
Insurance............................................................... 4,300,426 0.3
Investment Companies.................................................... 24,599,100 2.0
Leisure................................................................. 35,179,002 2.9
Leisure Broadcasting.................................................... 2,237,183 0.2
Machinery............................................................... 22,759,947 1.8
Manufacturing........................................................... 36,525,454 3.0
Metals & Mining......................................................... 28,044,332 2.3
Miscellaneous........................................................... 35,698,706 2.9
Multi-Industry.......................................................... 16,719,351 1.4
Natural Gas............................................................. 1,958,713 0.2
Oil Related............................................................. 21,373,392 1.7
Pharmaceuticals......................................................... 3,021,625 0.2
Photography............................................................. 3,703,400 0.3
Publishing.............................................................. 6,562,862 0.5
Real Estate............................................................. 195,785,329 15.9
Retail Stores........................................................... 32,714,695 2.6
Shipbuilding............................................................ 18,525,029 1.5
Telecommunications...................................................... 69,568,663 5.6
Textiles................................................................ 11,144,811 0.9
Transportation.......................................................... 12,968,099 1.0
U.S. Government Agency.................................................. 13,698,668 1.1
-------------- -----------
$1,246,524,051 100.9%
============= =========
SUMMARY OF INVESTMENTS BY TYPE April 30, 1994 (unaudited)
- - - ---------------------------------------------------------------------------------------------------------
Type of Investment
Bonds................................................................... $ 53,501,104 4.3%
Commercial Paper........................................................ 13,698,668 1.1
Common Stocks........................................................... 1,176,077,756 95.2
Put Options............................................................. 1,056,200 0.1
Rights.................................................................. 1,192,742 0.1
Warrants................................................................ 997,581 0.1
-------------- -----------
$1,246,524,051 100.9%
============= =========
</TABLE>
<PAGE> 13
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS For the six months
April 30, 1994 (unaudited) ended April 30, 1994 (unaudited)
<S> <C> <C> <C>
- - - ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $1,133,534,538) (Note
1).................................... $1,246,524,051
Cash (including $2,022,360 in foreign
currency)............................. 2,550,716
Receivable for:
Capital stock sold.................... 7,160,010
Dividends............................. 3,657,733
Investments sold...................... 1,941,493
Interest.............................. 263,366
Deferred organizational expenses (Note
1).................................... 45,081
Prepaid expenses........................ 50,539
--------------
TOTAL ASSETS.................... 1,262,192,989
--------------
LIABILITIES:
Payable for:
Investments purchased................. 24,176,511
Plan of distribution fee (Note 3)..... 954,291
Investment management fee (Note 2).... 574,856
Capital stock repurchased............. 502,507
Accrued expenses and other payables
(Note 4).............................. 624,174
--------------
TOTAL LIABILITIES............... 26,832,339
--------------
NET ASSETS:
Paid-in-capital......................... 1,089,510,666
Net accumulated investment loss......... (4,615,868)
Net accumulated undistributed realized
gain.................................. 37,507,527
Net unrealized appreciation............. 112,958,325
--------------
NET ASSETS...................... $1,235,360,650
--------------
--------------
NET ASSET VALUE PER SHARE, 62,133,257
shares outstanding (500,000,000
authorized shares of $.01 par
value)................................ $19.88
------
------
INVESTMENT INCOME:
INCOME
Dividends (net of $1,104,438 foreign
withholding tax).................. $ 9,176,565
Interest (net of $4,987 foreign
withholding tax).................. 620,796
--------------
TOTAL INCOME...................... 9,797,361
--------------
EXPENSES
Investment management fee (Note
2)................................ 5,277,760
Plan of distribution fee (Note 3)... 4,532,336
Transfer agent fees and expenses.... 777,570
Custodian fees...................... 599,079
Registration fees................... 309,483
Professional fees................... 46,659
Shareholder reports and notices
(Note 4).......................... 26,372
Organizational expenses (Note 1).... 14,093
Directors' fees and expenses (Note
4)................................ 11,511
Other expenses...................... 7,881
--------------
TOTAL EXPENSES.................... 11,602,744
--------------
NET INVESTMENT LOSS............. (1,805,383)
--------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) (Note 1):
Net realized gain (loss) on:
Investments......................... 41,192,339
Foreign exchange transactions....... (216,939)
--------------
40,975,400
--------------
Net change in unrealized appreciation
or depreciation on:
Investments......................... (67,686,760)
Translation of other assets and
liabilities
denominated in foreign
currencies........................ (19,336)
--------------
(67,706,096)
--------------
NET LOSS.......................... (26,730,696)
--------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $ (28,536,079)
--------------
--------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six
months ended For the
April 30, 1994 year ended
INCREASE (DECREASE) IN NET ASSETS: (unaudited) October 31, 1993
-------------- ----------------
<S> <C> <C>
Operations:
Net investment loss........................................................ $ (1,805,383) $ (1,430,412)
Net realized gain.......................................................... 40,975,400 9,710,201
Net change in unrealized appreciation or depreciation...................... (67,706,096) 165,227,866
-------------- ----------------
Net (decrease) increase in net assets resulting from operations........ (28,536,079) 173,507,655
Distributions to shareholders from net realized gains........................ (13,872,859) (29,883)
Net increase from transactions in shares of capital stock (Note 5)........... 583,379,834 344,121,450
-------------- ----------------
Total increase......................................................... 540,970,896 517,599,222
NET ASSETS:
Beginning of period.......................................................... 694,389,754 176,790,532
-------------- ----------------
END OF PERIOD (including accumulated net investment loss of $4,615,868 and
$2,810,485, respectively).................................................. $1,235,360,650 $ 694,389,754
============== ================
</TABLE>
See Notes to Financial Statements
<PAGE> 14
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited)
- - - --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter Pacific Growth Fund Inc.
(the "Fund") is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a diversified open-end management investment company. It was
incorporated in Maryland on June 13, 1990 and commenced operations on November
30, 1990.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- (1) an equity portfolio security listed or
traded on the New York or American Stock Exchange or other domestic or
foreign 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 (in cases where securities
are traded on more than one exchange, the securities are valued on the
exchange designated as the primary market by the Board of Directors); (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, including circumstances under which it is determined by the
Investment Manager that sale or bid prices are not reflective of a
security's market value, portfolio securities are valued at their fair
value as determined in good faith under procedures established by and under
the general supervision of the Board of Directors (valuation of debt
securites for which market quotations are not readily available may be
based upon current market prices of securities which are comparable in
coupon, rating, and maturity or an appropriate matrix utilizing similar
factors); and (4) the fair value of short-term debt securities which mature
at a date less than sixty days subsequent to the valuation date is
determined on an amortized cost or amortized value basis.
B. Accounting for Investments -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing
net investment income, the Fund does not amortize premiums or accrue
discounts on fixed income securities in the portfolio, except those
original issue discounts for which amortization is required for federal
income tax purposes. Realized gains and losses on security transactions are
determined on the identified cost method. Additionally, with respect to
market discount, a portion of any capital gain realized upon disposition
may be recharacterized as investment income. Dividend income and other
distributions are recorded on the ex-dividend date, except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed after the ex-dividend date. Interest income is accrued daily.
C. Option Accounting Principles -- When the Fund writes a call option, an
amount equal to the premium received by the Fund is included in the Fund's
Statement of Assets and Liabilities as an asset and as an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written. Listed options are
valued at the last sale price on the exchange on which they are listed (if
there were no sales that day, the option is valued at the mean between the
closing bid and asked prices). If an option which the Fund has written
either expires on its stipulated expiration date, or if the Fund enters
into a closing purchase transaction, the Fund realizes a gain (or loss if
the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss
on the underlying security or currency, and the liability related to such
option is extinguished. If a call option which the Fund has written is
exercised, the Fund realizes a capital gain or loss from the sale of the
<PAGE> 15
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - --------------------------------------------------------------------------------
underlying security or currency and the proceeds from such sale are
increased by the premium originally received.
The premium paid by the Fund for the purchase of a call or a put option is
included in the Fund's Statement of Assets and Liabilities as an investment
and is subsequently marked-to-market to reflect the current market value of
the option.
D. Foreign Currency Translation -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market
values of investment securities, other assets and liabilities and forward
contracts stated in foreign currencies are translated at the exchange rates
at the end of the period; and (2) purchases, sales, income and expenses are
translated at the rate of exchange prevailing on the respective dates of
such transactions. The resultant exchange gains and losses are included in
the Statement of Operations. Pursuant to U.S. Federal income tax
regulations, certain net foreign exchange gains/losses included in realized
and unrealized gain/loss in the Statement of Operations are included in or
are a reduction of ordinary income for federal income tax purposes. The
Fund does not isolate that portion of the results of operations arising as
a result of changes in the foreign exchange rates from the changes in the
market prices of the securities.
E. Forward Foreign Currency Exchange Contracts -- The Fund may enter into
forward foreign currency contracts as a hedge against fluctuations in
future foreign exchange rates. All forward contracts are valued daily at
the appropriate exchange rates and any resulting unrealized currency gains
or losses are reflected in the Fund's accounts. The Fund records realized
gains or losses on delivery of the currency or at the time the forward
contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.
F. Federal Income Tax Status -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
G. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the record date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications. 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.
H. Organizational Expenses -- The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately
$142,000. The Fund has reimbursed the Investment Manager for these costs.
These reimbursed expenses have been deferred and are being amortized by the
Fund on the straight line method over a period not to exceed five years
from the commencement of operations.
<PAGE> 16
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - --------------------------------------------------------------------------------
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS -- Pursuant to an
Investment Management Agreement (the "Agreement") with Dean Witter InterCapital
Inc., (the "Investment Manager"), the Fund pays its Investment Manager a
management fee accrued daily and payable monthly by applying the annual rate of
1.0% to the net assets of the Fund determined as of the close of each business
day.
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 office space and 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.
Under a Sub-Advisory Agreement between Morgan Grenfell Investment Services
Limited (the "Sub-Advisor") and the Investment Manager, the Sub-Advisor provides
the Fund with investment advice and portfolio management relating to the Fund's
investments in securities, subject to the overall supervision of the Investment
Manager. As compensation for its services provided pursuant to the Sub-Advisory
Agreement, the Investment Manager pays the Sub-Advisor monthly compensation
equal to 40% of its monthly compensation.
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 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 the annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestments of dividends or capital gains
distributions), less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services it provides 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., an affiliate of
the Investment Manager, and other employees or selected dealers who engage in or
support distribution of the Fund's shares or who service shareholders' accounts,
including overhead and telephone expenses, printing and distribution of
prospectuses and reports used in connection with the offering of the Fund's
shares, 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 unrecovered expenses incurred
by the Distributor.
Providing that the Plan continues in effect, any cumulative expenses
incurred by the Distributor, 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, 1994, it received approximately $886,000 in contingent deferred sales
charges from redemption 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 the proceeds from sales, excluding short-term investments, for the
six months ended April 30, 1994, aggregated
<PAGE> 17
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - --------------------------------------------------------------------------------
$769,619,526 and $196,308,846, respectively, for portfolio securities and
$10,387,500 and $11,815,600, respectively, for currency put options. For the six
months ended April 30, 1994, the Fund incurred brokerage commissions of $950,000
with affiliates of Morgan Grenfell for transactions executed on behalf of the
Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and the
Distributor, is the Fund's transfer agent. At April 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $110,000.
Effective January 1, 1994, the fund adopted an unfunded noncontributory
defined benefit pension plan covering all independent Directors of the Fund who
will have served as an independent Director 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, 1994, included in Director's fees and expenses in
the Statement of Operations, amounted to $6,000. At April 30, 1994, the Fund had
an accrued pension liability of $6,000 which is included in accrued expenses in
the Statement of Assets and Liabilities.
Bowne & Co., Inc. is an affiliate of the Fund by virtue of a common Fund
Director and Director of Bowne & Co., Inc. For the six months ended April 30,
1994, the Fund paid Bowne & Co., Inc. $10,137 for printing of shareholder
reports.
5. CAPITAL STOCK -- Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
For the six months ended For the year ended
April 30, 1994 October 31, 1993
----------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Sold........................... 36,666,782 $ 785,632,508 25,051,232 $403,642,713
Reinvestment of
distributions................ 577,238 12,878,176 2,334 28,148
----------- ------------- ---------- ------------
37,244,020 798,510,684 25,053,566 403,670,861
Repurchased.................... (10,178,272) (215,130,850) (3,920,342) (59,549,411)
----------- ------------- ---------- ------------
Net increase................... 27,065,748 $ 583,379,834 21,133,224 $344,121,450
============ ============== ========== =============
</TABLE>
6. FEDERAL INCOME TAX STATUS -- As of October 31, 1993, the Fund had temporary
book/tax differences primarily attributable to the mark-to-market of passive
foreign investment companies and permanent book/tax differences primarily
attributable to foreign currency losses. To reflect reclassifications arising
from permanent book/tax differences as of October 31, 1993, accumulated
undistributed net realized gains was credited $1,472,387, accumulated
undistributed net investment income was charged $1,472,266 and paid-in-capital
was charged $121.
7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK -- As of April 30, 1994,
the Fund had outstanding forward foreign currency exchange contracts ("forward
contracts") as a hedge against changes in future foreign exchange rates. Forward
contracts 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 rate underlying the forward contract.
Risks may also arise upon entering into these contracts from the potential
inability of the counterparties to meet the terms of their contracts.
<PAGE> 18
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS (unaudited)
- - - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
For the For the period
six months For the For the November 30, 1990*
ended year ended year ended through
April 30, 1994** October 31, 1993 October 31, 1992** October 31, 1991
---------------- ---------------- ------------------ ------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORM-
ANCE:
Net asset value, beginning of
period..................... $ 19.80 $ 12.69 $ 11.72 $ 10.00
---------------- ---------------- ------------------ ------------------
Net investment (loss) income. (0.04) (0.04) (0.01) 0.06
Net realized and unrealized
gains.................... 0.44*** 7.15 1.14 1.69
---------------- ---------------- ------------------ ------------------
Total from investment
operations................. 0.40 7.11 1.13 1.75
---------------- ---------------- ------------------ ------------------
Less dividends and
distributions:
Dividends from net
investment income........ -0- -0- (0.01) (0.03)
Distributions from net
realized capital gains... (0.32) -0- (0.15) -0-
---------------- ---------------- ------------------ ------------------
Total dividends and distributions.. (0.32) -0- (0.16) (0.03)
---------------- ---------------- ------------------ ------------------
Net asset value, end of
period..................... $ 19.88 $ 19.80 $ 12.69 $ 11.72
============ ============= =============== ===============
TOTAL INVESTMENT RETURN+........ 1.88%(1) 56.13% 9.86% 17.54%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................. $ 1,235,361 $ 694,390 $ 176,791 $ 85,701
Ratio of expenses to average
net assets................. 2.20%(2) 2.38% 2.77% 2.43%(2)(3)
Ratio of net investment (loss)
income to average net assets. (0.34)%(2) (0.46)% (0.30)% 0.61%(2)(3)
Portfolio turnover rate....... 19% 30% 73% 70%
</TABLE>
- - - ---------------
* Commencement of operations.
** Net investment loss was computed based upon monthly average shares
outstanding.
*** Includes the effect of capital share transactions.
+ Does not reflect the deduction of sales load.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all expenses that were assumed or waived by the
Investment Manager, the above annualized expense ratio would have been 2.83%
and the above annualized net investment income ratio would have been 0.22%.
See Notes to Financial Statements
<PAGE> 19
(This Page Intentionally Left Blank)
<PAGE> 20
BOARD OF DIRECTORS
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Thomas H. Connelly
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
Price Waterhouse
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
SUB-ADVISOR
Morgan Grenfell Investment Services Limited
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
PACIFIC
GROWTH FUND
[PHOTO]
SEMIANNUAL REPORT
APRIL 30, 1994
<PAGE> 21
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The back cover of the Semiannual Report in the printed version contains
a picture of a ship in a bottle.
