DEAN WITTER PACIFIC GROWTH SECURITIES INC, N-30D, 1997-01-03

DEAN WITTER PACIFIC GROWTH SECURITIES INC
N-30D, 1997-01-03

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<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC. TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996

DEAR SHAREHOLDER:
The twelve months ended October 31, 1996, began on a relatively strong note,
with investors encouraged by cuts in U.S. interest rates and the continued high
levels of economic and corporate earnings growth exhibited by Pacific Basin
countries. However, during the second half of the period, the gyrations of Wall
Street, wild swings in expectations regarding the outlook for U.S. interest
rates and a downturn in the global electronics business cycle proved detrimental
to the markets of the region. While inflationary pressures, which were evident
last year, have subsided as a result of tight monetary policies, current account
deficits have proven more recalcitrant as a result of weak growth in demand for
the electronics products in which the region specializes. Export growth has been
disappointing, which has also led to lower 1996 forecasts for both GDP and
corporate earnings growth.
In contrast to much of the rest of the region, the Hong Kong market put in a
relatively strong performance, rising by 28.0 percent for the year and 10.4
percent in the second half in U.S. dollar terms, buoyed by more encouraging
economic data from China and a strong property market. Taiwan also recorded
strong gains over the period. Early in 1996, Chinese missile tests off the coast
of Taiwan, stemming from the desire of the Chinese to influence the outcome of
important Taiwanese elections, severely affected investor sentiment. However,
after the elections, tensions subsided rapidly, and the subsequent rapprochement
in Chinese/Taiwanese relations helped the market rally sharply. Furthermore, the
decision by Morgan Stanley Capital International to include Taiwan in regional
indices as of September resulted in a significant inflow of foreign funds to the
market.
At the other end of the performance spectrum, Thailand put in a particularly
weak performance, falling by 29.4 percent for the year and 32.6 percent in the
second half in U.S. dollar terms, amidst concerns over a worsening current
account deficit, resultant declines in GNP and corporate earnings estimates, and
political uncertainty. More recently, the Bank of Thailand has taken measures to
reduce the level of offshore
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996, CONTINUED

borrowings. While essentially a move in the right direction, the timing of this
effective monetary tightening in the face of slowing economic growth and an
escalating negative wealth effect, has adversely affected the stock market.
Korea has also been disappointing. First-half corporate results were weak, hit
by exchange losses on foreign currency debt and a difficult domestic operating
environment. Moreover, weak export growth atop the rapid decline in DRAM
semiconductor prices and political scandals (including a death penalty sentence
imposed upon a former president) further depressed sentiment.
PERFORMANCE AND PORTFOLIO STRATEGY
[GRAPHIC]
Against this backdrop, Dean Witter
Pacific Growth Fund produced a total
return of 3.00 percent for the
twelve-month period ended October 31,
1996. During the same period, the
Morgan Stanley Capital International
World Index (MSCI World Index) and the
Lipper Pacific Region Funds Average
produced returns of 14.48 percent and
5.10 percent, respectively. However,
unlike the Fund which invests primarily
in securities in the markets of the
Pacific Rim, the MSCI World Index
measures the performance of the
European, Asian and American markets.
(The Lipper Pacific Region Funds
Average tracks the performance of funds
which invest in equity securities whose
primary trading markets or operations
are concentrated in the Western Pacific
basin region or a single country within
this region.) The accompanying chart
illustrates the growth of a $10,000
investment in the Fund from inception
(November 30, 1990) through the fiscal
year ended October 31, 1996, versus a
similar hypothetical investment in the
securities that comprise the MSCI World
Index and the Lipper Pacific Region
Funds Average.
[GRAPHIC]
Within Southeast Asia, the Fund's
portfolio is overweighted toward
Indonesia. Earnings in this
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996, CONTINUED

market are rising strongly on the back of solid, investment-driven GDP growth
and accelerating deregulation of a number of industries. Meanwhile, valuations
have fallen to the low end of historic ranges at just 12.8 times 1997 earnings.
In addition, a heavy supply of large new issues over the last couple of years
has significantly improved the overall depth and breadth of the market. The
Indonesian portfolio is focused on issuers positioned to benefit from increased
disposable incomes (e.g., HM Sampoerna, the cigarette company, and IndoFood
Sukses Makmur) and infrastructure development (e.g., cement manufacturer Semen
Gresik).
The Fund's biggest overweighting is in Hong Kong. Despite this market's having
performed relatively well this year, Morgan Grenfell Investment Services
Limited, the Fund's sub-adviser, believes it continues to offer the potential
for good returns over the coming year. Chinese economic growth has now slowed to
a more sustainable, noninflationary level of about 8 percent, down from over 13
percent three years ago. Inflationary pressures have receded, and the
authorities are beginning to ease monetary policy. A resurgence of growth in
China should underpin growth in the region in general and Hong Kong in
particular. We are now within nine months of the return of Hong Kong to Chinese
sovereignty in July next year. This will clearly be a significant focus of
attention and media comment over the coming year, with consequent potential for
market volatility. Although clearly a risk factor, Morgan Grenfell continues to
expect the transition to go smoothly and for Hong Kong's new status to be
beneficial to its long-term economic development.
In Hong Kong, the Fund continues to favor residential property stocks such as
Henderson Land Development Co. Ltd. and Cheung Kong Holdings Ltd. and also
expects outperformance from real estate investment stocks (Hong Kong's
commercial and office landlords) such as Hong Kong Land Holdings Ltd., Great
Eagle Holding Co., Wharf Holdings Ltd. and Amoy Properties, Ltd.
The Fund's exposure to Japan remains modest. Although Morgan Grenfell expects
the Japanese economy to continue its recovery in 1997 and thus drive corporate
earnings growth and share prices higher, it is expected that returns will be
comparable only with those available elsewhere in the region. Given the greater
long-term attractions of the rest of the Pacific Basin, they anticipate
maintaining the strategic orientation of the Fund toward the Tiger markets. The
Fund's exposure to Japan still has a bias toward small-cap stocks, which
continue to have attractive growth and valuation characteristics relative to
their larger counterparts.
The Fund maintains neutral or underweighted exposures to the other markets of
the region but continues to see many attractive stock selection opportunities
right across the region. For example, toll-road operators such as Metacorp
Berhad, United Engineers Malaysia Berhad, Gamuda Berhad and Sungei Way Holdings
Berhad in Malaysia and Road King Infrastructure Ltd. in China continue to
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1996, CONTINUED

benefit from a regional boom in privatized infrastructure development, while
specialist electronics related manufacturers such as Amtek Engineering Ltd. and
Venture Manufacturing Ltd. continue to benefit from the growth in out-sourcing
by multinational companies, despite decline in overall demand growth for the
industry.
LOOKING AHEAD
While the performance of the Pacific Rim markets has been disappointing this
year, the Fund's investment adviser remains optimistic about the outlook for the
region over the coming months. Forecasts for 1997 GDP growth remain strong by
the standards of the rest of the world's markets, ranging between 4.5 percent
and 9.5 percent around the region, with most countries falling between 6 percent
and 7 percent. Interest rates in the region are probably at their peak and have
begun to decline in some places. There is also some evidence that the
electronics industry may be beginning to recover, with the U.S. semiconductor
book-to-bill ratio (which measures orders received by semiconductor
manufacturers against orders dispatched) rising to 1.1 in October, up from a low
of 0.79 in March. Hence, most economic cycles should be beginning to move in a
favorable direction for the region next year. Corporate earnings growth this
year has fallen to an average of around 11 percent for the region. However,
upgrades are now likely over the coming months, and a reacceleration to around
14 percent is expected for 1997.
The main attraction of the region at present still lies in price earnings (P/E)
valuations which, at around 15.0 times 12-month prospective earnings, are low
relative to history. Regional equities are currently available at valuation
levels similar to those seen during the Gulf Crisis of 1990-1991, when this Fund
was originally launched. Morgan Grenfell believes that these levels of valuation
more than discount the present uncertainties and that there is room for an
upside in the markets, driven both by a reacceleration of corporate earnings and
by some P/E expansion.
We appreciate your support of the Dean Witter Pacific Growth Fund and look
forward to continuing to serve your investment needs and objectives.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, WARRANTS, RIGHTS
AND BONDS (98.4%)
AUSTRALIA (1.7%)
COMMERCIAL SERVICES
350,178 Mayne Nickless Ltd......... $ 2,322,650
-----------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
1,200,000 Foster's Brewing Group
Ltd........................ 2,184,540
3,514,670 Goodman Fielder Wattie
Ltd........................ 4,117,154
-----------------
6,301,694
-----------------
METALS & MINING
215,000 CRA Ltd.................... 3,366,012
2,000,000 North Ltd.................. 5,682,970
-----------------
9,048,982
-----------------
OIL RELATED
1,500,000 Santos, Ltd................ $ 5,983,740
-----------------
TRANSPORTATION
197,250 Brambles Industries,
Ltd........................ 3,262,979
-----------------

TOTAL AUSTRALIA............ 26,920,045
-----------------
CHINA (0.8%)
CHEMICALS
73,400 Jilin Chemical Industrial
Co., Ltd. (ADR)............ 963,375
4,000,000 Shanghai Petrochemical Co.
Ltd........................ 1,073,489
5,650,000 Yizheng Chemical Fibre Co.
Ltd........................ 1,308,039
-----------------
3,344,903
-----------------
TRANSPORTATION
2,040,000 Jinhui Shipping and
Transportation Ltd......... 1,817,301
-----------------
UTILITIES
275,000 Huaneng Power
International, Inc. (Class
N) (ADR)*.................. 4,193,750
322,000 Shandong Huaneng Power Co.,
Ltd. (ADR)................. 2,938,250
-----------------
7,132,000
-----------------

TOTAL CHINA................ 12,294,204
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>

HONG KONG (33.4%)
BANKING
2,177,000 Bank of East Asia, Ltd..... $ 8,503,246
1,833,838 Dao Heng Bank Group Ltd.... 8,064,163
1,550,000 Guoco Group Ltd............ 8,199,255
2,752,000 Hang Seng Bank Ltd......... 32,656,820
378,800 HSBC Holdings PLC.......... 7,716,315
6,000,000 International Bank of
Asia....................... 3,666,675
450,000 Wing Hang Bank Ltd......... 1,810,057
-----------------
70,616,531
-----------------
BUILDING & CONSTRUCTION
3,725,000 Kumagai Gumi, Ltd.......... 3,444,702
-----------------
CONGLOMERATES
884,000 Citic Pacific, Ltd......... 4,298,921
2,070,000 First Pacific Co. Ltd...... 2,851,277
126,260 Henderson China Holding
Ltd........................ 285,774
8,930,000 Hutchison Whampoa, Ltd..... 62,368,401
699,800 Jardine Matheson Holdings
Ltd........................ 3,953,870
413 New World Infrastructure
Ltd.*...................... 1,028
3,257,000 Swire Pacific Ltd. (Class
A)......................... 28,750,129
-----------------
102,509,400
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
3,000,000 ASM Pacific Technology
Ltd........................ 2,250,446
-----------------
ENGINEERING & CONSTRUCTION
8,411,000 Road King Infrastructure
Ltd.*...................... 6,146,324
-----------------
FINANCIAL SERVICES
$ 8,300K Henderson Capital
International 5.00% due
03/28/97 (Conv.)........... 7,138,000
12,668,000 Manhattan Card Co. Ltd..... 6,266,988
-----------------
13,404,988
-----------------
FOOD PROCESSING
8,000,000 Tingyi (Cayman Islands)
Holding Co.*............... 1,769,316
-----------------
HOTELS/MOTELS
26,122,000 CDL Hotels International,
Ltd........................ 13,514,059
5,000,000 Regal Hotels
International.............. 1,374,195
2,000,000 Shangri-La Asia Ltd........ 2,858,325
-----------------
17,746,579
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES
4,280,000 Guangdong Investments...... $ 3,072,247
100,000 Investment Co. of China***
*.......................... 684,000
-----------------
3,756,247
-----------------
LIFE INSURANCE
4,503,000 National Mutual Asia
Ltd........................ 3,785,600
-----------------
PUBLISHING
6,000,000 South China Morning Post
(Holdings) Ltd............. 5,121,705
-----------------
REAL ESTATE
7,000,000 Amoy Properties, Ltd....... 8,646,111
6,793,000 Cheung Kong (Holdings)
Ltd........................ 54,471,921
3,148,000 Great Eagle Holding Co..... 10,117,670
1,590,000 Henderson Land Development
Co. Ltd.................... 14,138,040
880,880 HKR International Ltd...... 1,116,509
800 HKR International Ltd.
(Warrants due 06/23/00)*... 398
HKD 10,500K HKR International Ltd.
6.00% due 06/26/00......... 1,225,620
6,025,800 Hon Kwok Land Investment
Ltd........................ 1,967,866
4,162,000 Hong Kong Land Holdings
Ltd........................ 9,281,260
1,600,000 Hysan Development Co.
Ltd........................ 5,132,052
80,000 Hysan Development Co. Ltd.
(Warrants due 04/30/98)*... 38,542
2,210,000 Lai Sun Development Co.
Ltd........................ 2,858,325
3,680,000 New World Development...... 21,418,040
740,000 Realty Development Corp.
(Class A).................. 2,832,976
4,395,500 Sun Hung Kai Properties
Ltd........................ 50,027,678
6,358,000 Wharf (Holdings) Ltd....... 26,231,951
-----------------
209,504,959
-----------------
RETAIL - SPECIALTY APPAREL
1,200,000 Dickson Concepts
International Ltd. (New)... 4,004,242
8,999,000 Giordano International
Ltd........................ 9,078,378
-----------------
13,082,620
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
23,444,000 Hong Kong
Telecommunications Ltd..... $ 41,388,888
-----------------
TRANSPORTATION
2,500,000 Cathay Pacific Airways..... 3,912,414
7,970,000 Cosco Pacific Ltd.......... 7,627,978
9,511,000 The Guangshen Railway Co.,
Ltd.*...................... 3,536,580
-----------------
15,076,972
-----------------
UTILITIES
1,330,000 China Light & Power Co.
Ltd........................ 6,175,406
8,849,000 Hong Kong & China Gas Co.
Ltd........................ 15,565,121
700,000 Hong Kong & China Gas Co.
(Warrants due 09/30/97)*... 258,025
3,350,000 Hong Kong Electric Holdings
Ltd........................ 10,723,570
-----------------
32,722,122
-----------------

TOTAL HONG KONG............ 542,327,399
-----------------

INDONESIA (7.0%)
AUTO
12,000,000 PT Gadjah Tunggal.......... 5,153,975
-----------------
BANKING
6,241,000 PT Bank Bira............... 6,098,130
2,000,000 PT Bank Dagang Nasional
Indonesia.................. 1,417,343
6,120,440 PT Bank International
Indonesia.................. 4,928,843
2,332,500 PT Pan Indonesia Bank...... 2,329,194
-----------------
14,773,510
-----------------
BUILDING MATERIALS
13,362,548 PT Mulia Industrindo....... 12,626,210
1,843,000 PT Semen Gresik............ 5,303,483
-----------------
17,929,693
-----------------
CONSTRUCTION EQUIPMENT
3,012,000 PT United Tractors......... 5,595,026
-----------------
FINANCIAL SERVICES
5 Peregrine Indonesia
(Units)++** *.............. 2,648,750
-----------------
</TABLE>

TOTAL INDONESIA............ 114,023,409
-----------------

JAPAN (11.7%)
APPLIANCES & HOUSEHOLD DURABLES
65,000 Juken Sangyo............... 553,543
-----------------
AUTO PARTS
75,000 Bridgestone Metalpha
Corp....................... 782,757
-----------------
AUTOMOTIVE
13,500 Autobacs Seven Co.......... 1,063,235
114,000 Honda Motor Co............. 2,719,523
580,000 Isuzu Motors Ltd........... 2,863,884
121,000 Toyota Motor Corp.......... 2,854,675
-----------------
9,501,317
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
BANKING
208,000 Asahi Bank, Ltd............ $ 2,134,362
216,000 Bank of Tokyo - Mitsubishi
Ltd........................ 4,395,018
131,000 Dai-Ichi Kangyo Bank....... 2,125,504
208,000 Long Term Credit Bank of
Japan...................... 1,377,302
189,000 Mitsui Trust & Banking..... 1,823,364
150,000 Sanwa Bank, Ltd............ 2,552,184
145,000 Sumitomo Bank.............. 2,543,413
167,000 Sumitomo Trust & Banking... 1,845,466
-----------------
18,796,613
-----------------
BUILDING & CONSTRUCTION
55,000 Kaneshita Construction..... 578,846
90,000 Maeda Road Construction.... 1,294,510
-----------------
1,873,356
-----------------
BUILDING MATERIALS
44,000 Oriental Construction
Co......................... 644,448
200,000 Sanwa Shutter.............. 1,650,588
120,000 Shin Nikkei Co., Ltd....... 768,286
110,000 Toyo Shutter............... 820,032
-----------------
3,883,354
-----------------
BUSINESS SERVICES
29,000 Nippon Kanzai.............. 793,545
31,200 Nissin Co. Ltd............. 851,009
41,000 Secom...................... 2,437,993
60,000 Tanseisha.................. 684,091
-----------------
4,766,638
-----------------
CHEMICALS
23,600 Maezawa Kasei Industries... 817,576
520,000 Mitsubishi Chemical
Corp....................... 2,120,681
349,000 Nippon Zeon Co. Ltd........ 1,698,781
150,000 Sakai Chemical Industry
Co......................... 806,437
92,000 Shin-Etsu Chemical Co...... 1,573,408
-----------------
7,016,883
-----------------
COMMERCIAL SERVICES
22,000 Nichii Gakkan Co........... 1,061,217
-----------------
COMPUTER SOFTWARE & SERVICES
30,000 CSK Corp................... 881,424
55,000 Ines....................... 940,624
12,000 Mars Engineering Corp...... 493,598
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
52,000 Meitec..................... $ 1,067,181
30,000 Nintendo Co., Ltd.......... 1,915,453
70,000 Ricoh Elemex............... 982,284
330 TKC Corp................... 8,104
-----------------
6,288,668
-----------------
COMPUTERS
20,000 Enix Corp.................. 485,880
230,000 Fujitsu, Ltd............... 2,017,190
-----------------
2,503,070
-----------------
COMPUTERS - SYSTEMS
33,000 Daiwabo Information Systems
Co......................... 596,211
-----------------
CONSTRUCTION & HOUSING
100,000 Daiwa House Industry....... 1,385,722
50,000 Mitsui Home Co., Ltd....... 666,550
-----------------
2,052,272
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
70,000 Aiwa Co.................... 1,252,412
Y 100,000K Canon, Inc. 1.20% due
12/20/05 (Conv.)........... 1,383,968
Y 95,000K Canon, Inc. 1.30% due
12/19/08 (Conv.)........... 1,235,617
264,000 Hitachi, Ltd............... 2,338,537
33,000 Kyocera Corp............... 2,173,566
40,000 Mitsui High-Tec............ 806,876
49,000 Murata Manufacturing Co.,
Ltd........................ 1,572,882
50,000 Nitto Electric Works....... 863,884
83,000 Omron Corp................. 1,477,723
140,000 Sharp Corp................. 2,124,189
50,400 Sony Corp.................. 3,019,049
27,000 TDK Corp................... 1,581,828
-----------------
19,830,531
-----------------
ELECTRONICS
23,000 Kojima Co. Ltd............. 689,879
38,000 Maspro Denkoh Corp......... 866,515
130,000 Nissin Electric............ 793,545
29,000 Rohm Co., Ltd.............. 1,716,804
35,000 Ryoyo Electro Corp......... 620,067
-----------------
4,686,810
-----------------
ENGINEERING & CONSTRUCTION
27,000 Japan Industrial Land
Development................ 776,706
267,000 Kajima Corp................ 2,292,519
27,000 Nitto Kohki Co. Ltd........ 888,002
-----------------
3,957,227
-----------------
ENTERTAINMENT
14,300 H.I.S. Company Ltd......... 757,516
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES
170,000 Daiwa Securities Co.,
Ltd........................ $ 1,833,889
Y 21,000K Minebea Co. Ltd. 0.80% due
03/31/03 (Conv.)........... 208,121
24,000 Nichiei Co., Ltd.
(Kyoto).................... 1,595,510
120,000 Nomura Securities Co.
Ltd........................ 1,978,600
11,000 Sanyo Shinpan Finance Co.,
Ltd........................ 667,602
36,000 Shinki Co. Ltd............. 947,202
-----------------
7,230,924
-----------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
38,800 Amway Japan, Ltd........... 1,544,922
101,000 Nippon Meat Packers,
Inc........................ 1,319,856
35,000 Stamina Foods.............. 273,812
-----------------
3,138,590
-----------------
FOREST PRODUCTS, PAPER & PACKAGING
100,000 Daishowa Paper
Manufacturing Co. Ltd.*.... 589,370
-----------------
HEALTH & PERSONAL CARE
50,000 Kawasumi Laboratories,
Inc........................ 596,387
-----------------
HOUSEHOLD FURNISHINGS & APPLIANCES
50,000 Beltecno Corp.............. 534,994
-----------------
INDUSTRIALS
120,000 Nippon Thompson Co......... 854,587
180,000 Tokai Carbon Co., Ltd...... 841,431
-----------------
1,696,018
-----------------
INSURANCE
180,000 Tokio Marine & Fire
Insurance Co............... 1,973,338
228,000 Yasuda Fire & Marine
Insurance.................. 1,445,746
-----------------
3,419,084
-----------------
MACHINERY
85,000 Aichi Corp................. 697,027
200,000 Amada Co., Ltd............. 1,718,997
150,000 Daifuku Co. Ltd............ 1,841,782
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
35,000 Fuji Machine Manufacturing
Co......................... $ 825,732
80,000 Fujitec Co. Ltd............ 827,925
22,000 Keyence Corp............... 2,546,922
309,000 Minebea Co., Ltd........... 2,598,939
325,000 Mitsubishi Heavy
Industries, Ltd............ 2,494,080
120,000 OSG Corp................... 790,388
50,000 Sansei Yusoki Co., Ltd..... 613,927
85,000 Sintokogio................. 700,754
65,000 Takuma Co., Ltd............ 741,098
130,000 Tsudakoma.................. 720,575
-----------------
17,118,146
-----------------
MANUFACTURED HOUSING
65,000 Kawasho Gecoss Corp........ 758,200
-----------------
MANUFACTURING
55,000 Arcland Sakamoto........... 757,323
90,000 Itoki Crebio Corp.......... 718,295
49,000 Nichiha Corp............... 902,473
104,000 Nippon Electric Glass Co.,
Ltd........................ 1,587,090
52,700 Sony Music Entertainment
Inc........................ 2,029,056
88,000 Tokyo Steel
Manufacturing.............. 1,358,358
-----------------
7,352,595
-----------------
MEDICAL SUPPLIES
13,200 Paramount Bed Co........... 909,946
150,000 Shimadzu Corp.............. 881,424
-----------------
1,791,370
-----------------
MERCHANDISING
24,000 Misumi Corp................ 547,272
-----------------
METALS & MINING
330,000 Nippon Light Metal Co...... 1,586,038
667,000 Nippon Steel Co............ 1,942,150
-----------------
3,528,188
-----------------
METALS - NON-FERROUS
279,000 Fujikura Ltd............... 2,121,496
-----------------
METALS - STEEL
60,000 Takada Kiko................ 521,487
-----------------
MULTI-INDUSTRY
244,000 Mitsui & Co................ 1,968,777
46,200 Trusco Nakayama Corp....... 923,838
58,000 Yamae Hisano............... 574,811
-----------------
3,467,426
-----------------
NATURAL GAS
365,000 Tokyo Gas Co., Ltd......... 1,136,423
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
OIL RELATED
187,000 General Sekiyu............. $ 1,448,176
-----------------
PHARMACEUTICALS
177,000 Daiichi Pharmaceutical..... 2,545,869
90,000 Eisai Co. Ltd.............. 1,610,244
100,000 Terumo..................... 1,280,477
-----------------
5,436,590
-----------------
REAL ESTATE
120,000 Cesar Co................... 896,685
60,000 Chubu Sekiwa Real Estate,
Ltd........................ 789,335
55,000 Kansai Sekiwa Real
Estate..................... 776,618
223,000 Mitsui Fudosan Co.......... 2,757,674
85,000 Sekiwa Real Estate......... 704,482
-----------------
5,924,794
-----------------
RETAIL
38,500 Ministop Co., Ltd.......... 975,838
55,000 Shimachu Co., Ltd.......... 1,509,823
24,000 Sundrug Co., Ltd........... 894,580
154,000 Tokyo Style................ 2,336,608
26,000 Xebio Co. Ltd.............. 843,712
-----------------
6,560,561
-----------------
RETAIL - DEPARTMENT STORES
172,000 Hankyu Department Stores... 2,051,570
-----------------
RETAIL - GENERAL MERCHANDISE
27,000 Circle K Japan Co. Ltd..... 1,110,595
-----------------
RETAIL - SPECIALTY
35,000 Aderans Co. Ltd............ 847,220
-----------------
STEEL
811,000 Sumitomo Metal
Industries................. 2,226,302
-----------------
TELECOMMUNICATIONS
372 DDI Corp................... 2,789,511
194,000 Nippon Comsys Corp......... 2,484,126
67,000 Nippon Denwa Shisetsu...... 728,644
-----------------
6,002,281
-----------------
TEXTILES
50,000 Chuo Warehouse Co.......... 521,838
22,000 Maruco Co., Ltd............ 906,858
570,000 Mitsubishi Rayon Co.,
Ltd........................ 2,234,608
-----------------
3,663,304
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
TRANSPORTATION
180,000 Fukuyama Transporting
Co......................... $ 1,521,838
325,000 Ishikawajima-Harima Heavy
Industry................... 1,496,448
217,000 Kamigumi Co. Ltd........... 1,674,794
35,000 Kanto Seino
Transportation............. 1,012,980
14,000 Sakai Moving Service Co.,
Ltd.*...................... 552,535
205,000 Tokyu Corp................. 1,375,417
-----------------
7,634,012
-----------------
UTILITIES - ELECTRIC
69,300 Hokkaido Electric Power.... 1,385,757
-----------------
WHOLESALE & INTERNATIONAL TRADE
30,000 Satori Electric Co. Ltd.... 910,367
-----------------
WHOLESALE DISTRIBUTOR
50,000 Wakita & Co................ 635,853
-----------------
TOTAL JAPAN................ 190,293,335
-----------------
MALAYSIA (17.0%)
AGRICULTURE
3,000,000 Highlands & Lowlands
Berhad..................... 5,224,619
2,000,000 Lingui Developments
Berhad..................... 3,942,213
-----------------
9,166,832
-----------------
AUTOMOTIVE
1,550,000 Diversified Resources
Berhad..................... 5,337,423
1,120,000 Oriental Holdings Berhad... 7,624,777
750,000 Perusahaan Otomobil
Nasional Berhad............ 4,749,654
1,571,000 Tan Chong Motor Holdings
Berhad..................... 2,673,778
-----------------
20,385,632
-----------------
BANKING
1,000,000 DCB Holdings Berhad........ 3,423,709
1,250,000 Kwong Yik Bank............. 3,438,551
1,150,000 Malayan Banking Berhad..... 11,379,379
3,233,333 Public Bank Berhad......... 5,993,607
-----------------
24,235,246
-----------------
BUILDING & CONSTRUCTION
450,000 Gamuda Berhad.............. 3,686,919
733,000 Hume Industries (Malaysia)
Berhad..................... 4,612,982
2,000,000 Kedah Cement Berhad........ 3,704,730

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
2,400,666 Metacorp Berhad............ $ 7,316,496
1,300,000 Sungei Way Holdings
Berhad..................... 7,409,460
250,000 Sungei Way Holdings Berhad
(Warrants due 06/29/99)*... 766,871
1,100,000 United Engineers Malaysia
Berhad..................... 8,707,698
MYR 4,000K United Engineers Malaysia
Berhad 2.00% due 03/01/04
(Conv.).................... 5,380,000
-----------------
41,585,156
-----------------
CONGLOMERATES
292,000 Gadek (Malaysia) Berhad.... 2,427,073
534,000 Intria Berhad.............. 1,426,677
2,000,000 Renong Berhad.............. 3,150,604
1,241,000 Sime Darby Berhad.......... 4,396,180
-----------------
11,400,534
-----------------
CONSTRUCTION PLANT & EQUIPMENT
1,430,000 YTL Corp. Berhad........... 7,697,605
-----------------
ENTERTAINMENT
3,708,800 Magnum Corporation
Berhad..................... 6,400,304
2,049,000 Resorts World Berhad....... 11,759,549
-----------------
18,159,853
-----------------
FINANCIAL SERVICES
2,997,000 Affin Holdings Berhad...... 7,710,469
866,666 Arab Malaysian Finance
Berhad..................... 4,665,212
891,000 Hong Leong Credit Berhad... 4,937,265
3,486,450 Public Finance Berhad...... 5,381,815
1,000,000 Rashid Hussain Berhad...... 6,253,711
-----------------
28,948,472
-----------------
FOREST PRODUCTS, PAPER & PACKAGING
700,000 Kian Joo Can Factory
Berhad..................... 3,823,471
-----------------
INSURANCE
846,000 Malaysian Assurance
Alliance Berhad............ 4,152,147
-----------------
MANUFACTURING
500,000 Malaysian Pacific
Industries Berhad.......... 1,939,442
256,625 O.Y.L. Industries Berhad... 2,844,053
-----------------
4,783,495
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
MULTI-INDUSTRY
2,000,000 Multi-Purpose Holdings
Berhad..................... $ 3,419,751
1,200,000 Nylex (Malaysia) Berhad.... 2,636,058
-----------------
6,055,809
-----------------
OIL & GAS PRODUCTS
750,000 Petronas Dagangan Berhad... 2,211,557
-----------------
PLANTATION
2,100,000 Industrial Oxygen
Incorporated Berhad........ 3,308,134
1,500,000 Kuala Lumpur Kepong
Berhad..................... 3,770,038
-----------------
7,078,172
-----------------
REAL ESTATE
1,789,500 Land & General Berhad...... 3,895,607
2,420,000 Malaysian Resources Corp.
Berhad..................... 9,291,114
3,327,000 Metroplex Berhad........... 3,832,009
2,507,000 Pelangi Berhad............. 2,381,476
3,000,000 Selangor Properties
Berhad..................... 3,099,149
1,781,000 Sime UEP Properties
Berhad..................... 4,899,248
-----------------
27,398,603
-----------------
TELECOMMUNICATIONS
1,200,000 Technology Resources
Industries Berhad*......... 2,873,540
2,900,000 Telekom Malaysia Berhad.... 25,596,675
-----------------
28,470,215
-----------------
TRANSPORTATION
800,000 Konsortium Perkapalan
Berhad*.................... 5,287,948
1,932,000 Malaysian Airline System
Berhad..................... 4,855,808
-----------------
10,143,756
-----------------
UTILITIES
500,000 Malakoff Berhad............ 2,256,086
300,000 Prime Utilities Berhad..... 2,968,534
155,000 Prime Utilities Berhad
(Warrants due 03/11/01)*... 429,448
MYR 310,000 Prime Utilities Berhad
1.00% due 03/01/01 (Loan
Stock)..................... 87,117

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
3,483,000 Tenaga Nasional Berhad..... $ 13,923,728
-----------------
19,664,913
-----------------

TOTAL MALAYSIA............. 275,361,468
-----------------

PHILIPPINES (3.1%)
BANKING
230,530 Philippine National Bank... 2,657,596
480,000 Security Bank Corp.*....... 439,024
-----------------
3,096,620
-----------------
BUILDING & CONSTRUCTION
883,000 Bacnotan Consolidated
Industries................. 3,701,601
-----------------
CONGLOMERATES
13,000,000 Aboitiz Equity Ventures
Inc.*...................... 1,560,594
6,029,766 Ayala Corp. (B Shares)..... 5,744,823
3,534,000 First Philippine Holdings
Corp. (B Shares)........... 7,138,034
-----------------
14,443,451
-----------------
ENGINEERING & CONSTRUCTION
7,167,000 DMCI Holdings Inc.*........ 5,189,520
-----------------
FOREST PRODUCTS, PAPER & PACKAGING
1,284,000 Paper Industries Corp.*.... 229,985
-----------------
REAL ESTATE
15,000,000 Belle Corp.*............... 4,001,524
3,990,000 Fil-Estate Land, Inc....... 3,725,419
104,000 Filinvest Land, Inc.*...... 35,274
$ 1,850K Filinvest Land, Inc. 3.75%
due 01/02/02 (Conv.)....... 1,803,750
-----------------
9,565,967
-----------------
TELECOMMUNICATIONS
18,000 Philippine Long Distance
Telephone Co............... 1,080,412
96,950 Philippine Long Distance
Telephone Co. (ADR)........ 5,804,881
-----------------
6,885,293
-----------------
UTILITIES
963,818 Manila Electric Co. (B
Shares).................... 7,089,058
-----------------

TOTAL PHILIPPINES.......... 50,201,495
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
SINGAPORE (10.3%)
APPLIANCES & HOUSEHOLD DURABLES
1,500,000 Courts (Singapore) Ltd..... $ 1,992,187
-----------------
BANKING
1,435,250 Development Bank of
Singapore, Ltd............. 17,227,077
1,410,000 Overseas Chinese Banking
Corp., Ltd................. 16,122,869
650,000 Overseas Union Bank,
Ltd........................ 4,431,818
1,600,000 United Overseas Bank,
Ltd........................ 15,568,182
-----------------
53,349,946
-----------------
CONGLOMERATES
1,215,000 Keppel Corp., Ltd.......... 9,060,724
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
600,000 Elec & Eltek International
Co. Ltd.................... 1,812,000
3,250,000 Venture Manufacturing
Ltd........................ 5,909,091
-----------------
7,721,091
-----------------
FINANCE
850,000 Hong Leong Finance Ltd..... 2,595,881
250,000 Hong Leong Finance Ltd.
(Warrants due 09/15/98)*... 141,158
-----------------
2,737,039
-----------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
345,000 Fraser & Neave Ltd......... 3,430,398
-----------------
HOTELS
600,000 Overseas Union Enterprise
Ltd........................ 2,940,341
1,322,000 Republic Hotels & Resorts
Ltd........................ 1,586,776
364,400 Republic Hotels & Resorts
Ltd. (Warrants due
07/12/00)*................. 175,989
-----------------
4,703,106
-----------------
MACHINERY
700,000 Van Der Horst Ltd.......... 2,585,227
-----------------
METALS - MISCELLANEOUS
3,484,500 Amtek Engineering Ltd...... 6,063,228
-----------------
PUBLISHING
390,000 Singapore Press Holdings... 6,481,534
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
REAL ESTATE
111,000 Bukit Sembawang Estates
Ltd........................ $ 2,593,679
1,574,400 City Developments, Ltd..... 12,411,818
870,000 DBS Land Ltd............... 2,743,466
750,000 Parkway Holdings Ltd....... 2,796,520
680,000 Singapore Land Ltd......... 3,767,045
2,500,000 United Overseas Land,
Ltd........................ 3,568,892
250,000 United Overseas Land, Ltd.
(Warrants due 05/28/01)*... 147,372
1,152,000 Wing Tai Holdings Ltd...... 2,830,909
-----------------
30,859,701
-----------------
SHIPBUILDING
316,000 Far East Levingston
Shipbuilding Ltd........... 1,458,807
971,000 Sembawang Corp. Ltd........ 4,172,266
-----------------
5,631,073
-----------------
STEEL & IRON
2,000,000 Natsteel Ltd............... 3,451,705
-----------------
TELECOMMUNICATIONS
3,400,000 Singapore
Telecommunications, Ltd.... 7,920,455
-----------------
TRANSPORTATION
3,000,000 Comfort Group Ltd.......... 2,663,352
2,055,000 Singapore Airlines Ltd..... 18,098,011
-----------------
20,761,363
-----------------

TOTAL SINGAPORE............ 166,748,777
-----------------

SOUTH KOREA (6.3%)
AIR TRANSPORT
9,770 Korean Air................. 198,423
-----------------
AUTOMOTIVE
74,250 Hyundai Motor Co., Ltd..... 2,315,807
42,000 Hyundai Motor Co., Ltd.
(GDR)...................... 455,700
-----------------
2,771,507
-----------------
BANKING
512,230 Cho Hung Bank.............. 5,454,877
66,561 Hana Bank.................. 1,019,821
11,525 Hana Bank (Rights)*........ 166,441
206,522 Kangwon Bank............... 1,581,497
1,290 Korea Housing Bank......... 24,892
216,833 Shinhan Bank............... 4,269,821
-----------------
12,517,349
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
BREWERY
50,841 Chosun Brewery Co.......... $ 1,357,405
-----------------
BUILDING MATERIALS
162,710 Tong Yang Cement Co........ 3,613,584
-----------------
CHEMICALS
150,000 Hanwha Chemical Corp....... 1,512,743
-----------------
COMMUNICATIONS - EQUIPMENT/MANUFACTURERS
37,000 LG Information &
Communication Ltd.......... 3,771,845
220 Sungmi Telecom
Electronics................ 48,144
-----------------
3,819,989
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
54,000 Samsung Display Devices
Co......................... 3,407,767
116,263 Samsung Electronics Co..... 8,197,670
15,728 Samsung Electronics Co.
(New)*..................... 1,078,437
4,174 Samsung Electronics Co.
(GDR) - non-voting*........ 88,155
220 Samsung Electronics Co.
(GDS) - voting*............ 9,981
-----------------
12,782,010
-----------------
ENGINEERING & CONSTRUCTION
116,706 Dong-Ah Construction
Industrial Co.............. 3,328,387
79,432 Dong-Ah Construction
Industrial Co. (EDR)*...... 1,191,480
10,284 Dong-Ah Construction
Industrial Co. (Rights)*... 268,333
274,340 Hyundai Engineering &
Construction Co............ 8,283,470
15,972 Hyundai Engineering &
Construction Co.*.......... 482,261
150,000 Sam Whan Corp.............. 3,458,738
-----------------
17,012,669
-----------------
FOOD PROCESSING
60,000 Cheil Foods & Chemicals.... 3,240,291
-----------------
FOREST PRODUCTS, PAPER & PACKAGING
40,000 Han Kuk Paper Manufacturing
Co......................... 956,311
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
INSURANCE
100,000 Oriental Fire & Marine
Insurance.................. $ 2,924,757
1,570 Samsung Fire & Marine
Insurance.................. 833,809
-----------------
3,758,566
-----------------
INVESTMENT COMPANIES
55,000 Atlantis Korean Smaller
Co's*...................... 2,516,250
65,000 Clemente Korea Emerging
Growth Fund*............... 455,000
-----------------
2,971,250
-----------------
OIL RELATED
160,829 Yukong, Ltd. (GDS)......... 3,766,990
-----------------
PHARMACEUTICALS
187,040 Dong-A Pharmaceutical Co.,
Ltd........................ 4,403,612
-----------------
STEEL & IRON
6,449 Dongkuk Steel Mill Co...... 129,137
1,440 Pohang Iron & Steel Co.,
Ltd........................ 92,010
427,700 Pohang Iron & Steel Co.,
Ltd. (ADR)................. 8,874,775
-----------------
9,095,922
-----------------
TELECOMMUNICATIONS
480 Korea Mobile
Telecommunications Corp.... 471,320
-----------------
TRANSPORTATION
3,462 Han Jin Transportation
Co......................... 75,626
-----------------
UTILITIES
152,150 Korea Electric Power
Corp....................... 4,486,948
3,380 Samchully Co............... 276,881
158,838 Seoul City Gas Go Ltd...... 11,662,256
-----------------
16,426,085
-----------------
WHOLESALE DISTRIBUTOR
200,000 Daewoo Corp................ 1,699,029
-----------------

TOTAL SOUTH KOREA.......... 102,450,681
-----------------

TAIWAN (1.4%)
BUILDING MATERIALS
132,550 Asia Cement Corp. (GDR).... 2,617,862
-----------------
</TABLE>

TOTAL TAIWAN............... 24,796,984
-----------------
THAILAND (5.7%)
BANKING
278,680 Thai Military Bank, Ltd.... 644,511
-----------------
BUILDING MATERIALS
259,300 Siam Cement Co., Ltd....... 8,863,220
396,000 Siam City Cement Co.,
Ltd........................ 2,483,634
1,580,000 Tipco Asphalt Co., Ltd..... 8,546,901
1,416,300 TPI Polene Co., Ltd........ 3,025,689
-----------------
22,919,444
-----------------
COAL
348,400 Ban Pu Coal Co., Ltd....... 6,446,035
851,400 Lanna Lignite Public Co.... 7,008,506
-----------------
13,454,541
-----------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
1,016,000 Charoen Pokphand Feedmill
Co. Ltd.................... 3,942,770
-----------------
INVESTMENT COMPANIES
11,840,300 Ruang Khao 2 Fund
(Units)++.................. 4,502,015
-----------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------
<C> <S> <C>
OIL RELATED
1,100,000 PTT Exploration &
Production PCL............. $ 15,781,428
-----------------
TELECOMMUNICATIONS
723,500 Advanced Information
Service PCL (ADR).......... 9,812,669
866,500 Total Access Communication
PCL........................ 5,978,850
522,000 United Communication
Industry................... 4,337,893
-----------------
20,129,412
-----------------
TEXTILES
363,200 Saha-Union PCL............. 423,551
-----------------
TRANSPORTATION
4,836,800 Bangkok Expressway Public
Co.*....................... 5,261,307
163,200 Bangkok Expressway Public
Co. (Local Market)*........ 177,523
104,000 Regional Container Line
Co., Ltd................... 1,092,548
719,300 Thai Airways International
Ltd........................ 1,268,806
-----------------
7,800,184
-----------------
UTILITIES - ELECTRIC
800,000 Cogeneration Public Co.*... 2,963,428
-----------------

TOTAL THAILAND............. 92,561,284
-----------------

TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS, RIGHTS
AND BONDS (IDENTIFIED COST
$1,519,797,033)............ 1,597,979,081
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (0.0%)
COMMERCIAL PAPER
AUTOMOTIVE - FINANCE
$ 350 Ford Motor Credit Co. 5.25%
due 12/06/96 (Amortized
Cost $348,214)............. $ 348,214
-----------------

TOTAL INVESTMENTS
(IDENTIFIED COST
$1,520,145,247) (B)........ 98.4% 1,598,327,295

CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES...... 1.6 26,140,585
----- -------------

NET ASSETS................. 100.0% $1,624,467,880
----- -------------
----- -------------

<FN>
- ---------------------
ADR American Depository Receipt.
EDR European Depository Receipt.
GDR Global Depository Receipt.
GDS Global Depository Share.
K In thousands.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
*** Partially paid shares. Resale is restricted to qualified institutional
investors.
++ Consists of more than one class of securities traded together as a unit;
generally stocks with attached warrants.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates
$1,543,094,913. The aggregate gross unrealized appreciation was
$202,204,434 and the aggregate gross unrealized depreciation was
$146,972,052, resulting in net unrealized appreciation of $55,232,382.
</TABLE>

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCTOBER 31, 1996

<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN DELIVERY APPRECIATION
TO DELIVER EXCHANGE FOR DATE (DEPRECIATION)
----------------------------------------------------------------
<S> <C> <C> <C>
AUD 651,375 $ 514,521 11/01/96 $ (1,042)
$ 711,208 MYR 1,782,359 11/01/96 (5,743)
$ 480,394 MYR 1,206,749 11/04/96 (2,757)
THB 94,710,648 $ 3,712,687 11/04/96 146
Y 51,598,498 $ 452,936 11/05/96 397
-------
Net Unrealized Depreciation.................. $ (8,999)
-------
-------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS OCTOBER 31, 1996
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------------------------------
<S> <C> <C>
Agriculture............................ $ 9,166,832 0.6%
Air Transport.......................... 198,423 0.0
Appliances & Household Durables........ 2,545,730 0.2
Auto................................... 5,153,975 0.3
Auto Parts............................. 782,757 0.0
Automotive............................. 32,658,456 2.0
Automotive - Finance................... 348,214 0.0
Banking................................ 198,030,326 12.3
Brewery................................ 1,357,405 0.1
Building & Construction................ 50,604,815 3.2
Building Materials..................... 50,963,938 3.2
Business Services...................... 4,766,637 0.3
Chemicals.............................. 11,874,529 0.7
Coal................................... 13,454,541 0.8
Commercial Services.................... 3,383,867 0.2
Communications -
Equipment/Manufacturers.............. 3,819,989 0.2
Computer Software & Services........... 6,288,668 0.4
Computers.............................. 2,503,070 0.2
Computers - Systems.................... 596,211 0.0
Conglomerates.......................... 137,414,109 8.5
Construction & Housing................. 2,052,272 0.1
Construction Equipment................. 5,595,026 0.3
Construction Plant & Equipment......... 7,697,605 0.5
Electronic & Electrical Equipment...... 42,584,078 2.6
Electronics............................ 4,686,810 0.3
Engineering & Construction............. 32,305,742 2.0
Entertainment.......................... 18,917,369 1.2
Finance................................ 2,737,039 0.2
Financial Services..................... 52,233,134 3.2
Food Processing........................ 5,009,607 0.3
Food, Beverage, Tobacco & Household
Products............................. 38,020,623 2.3
Forest Products, Paper & Packaging..... 16,860,597 1.0
Health & Personal Care................. 596,387 0.0
Hotels................................. 4,703,106 0.3
Hotels/Motels.......................... 17,746,579 1.1
Household Furnishings & Appliances..... 534,994 0.0
Industrials............................ 3,513,412 0.2
Insurance.............................. 11,329,797 0.7
Investment Companies................... 23,718,634 1.5
Life Insurance......................... 3,785,600 0.2

<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------------------------------
<S> <C> <C>
Machinery.............................. $ 19,703,373 1.2%
Manufactured Housing................... 758,200 0.0
Manufacturing.......................... 12,136,090 0.7
Medical Supplies....................... 1,791,370 0.1
Merchandising.......................... 547,272 0.0
Metals................................. 11,609,543 0.7
Metals & Mining........................ 12,577,170 0.8
Metals - Miscellaneous................. 6,063,228 0.4
Metals - Non-Ferrous................... 2,121,496 0.1
Metals - Steel......................... 521,487 0.0
Multi-Industry......................... 9,523,235 0.6
Natural Gas............................ 1,136,423 0.1
Oil & Gas Products..................... 2,211,557 0.1
Oil Related............................ 26,980,334 1.7
Pharmaceuticals........................ 9,840,202 0.6
Photography............................ 2,842,310 0.2
Plantation............................. 11,830,760 0.7
Publishing............................. 11,603,239 0.7
Real Estate............................ 283,254,023 17.4
Retail................................. 6,560,561 0.4
Retail - Department Stores............. 6,988,434 0.4
Retail - General Merchandise........... 1,110,595 0.1
Retail - Specialty..................... 847,220 0.1
Retail - Specialty Apparel............. 13,082,620 0.8
Shipbuilding........................... 5,631,073 0.3
Steel.................................. 2,226,302 0.1
Steel & Iron........................... 12,547,626 0.8
Telecommunications..................... 120,762,990 7.4
Textiles............................... 4,086,855 0.3
Transportation......................... 76,262,192 4.7
Utilities.............................. 83,034,178 5.1
Utilities - Electric................... 4,349,185 0.3
Wholesale & International Trade........ 910,367 0.1
Wholesale Distributor.................. 2,334,882 0.2
--------------------- ---
$ 1,598,327,295 98.4%
--------------------- ---
--------------------- ---
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------
<S> <C> <C>
Bonds.................................. $ 28,065,076 1.7%
Common Stocks.......................... 1,562,253,511 96.1
Preferred Stocks....................... 5,536,250 0.4
Rights & Warrants...................... 2,124,244 0.2
Short-Term Investments................. 348,214 0.0
--------------------- ---
$ 1,598,327,295 98.4%
--------------------- ---
--------------------- ---
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $1,520,145,247).......................... $1,598,327,295
Cash (including $4,863,435 in foreign currency)............. 12,087,745
Receivable for:
Investments sold........................................ 15,815,056
Capital stock sold...................................... 3,961,474
Dividends............................................... 2,496,672
Interest................................................ 292,645
Prepaid expenses and other assets........................... 72,224
--------------
TOTAL ASSETS........................................... 1,633,053,111
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 2,722,795
Capital stock repurchased............................... 2,188,602
Plan of distribution fee................................ 1,406,541
Investment management fee............................... 1,378,563
Accrued expenses and other payables......................... 888,730
--------------
TOTAL LIABILITIES...................................... 8,585,231
--------------
NET ASSETS:
Paid-in-capital............................................. 1,571,133,362
Net unrealized appreciation................................. 78,152,434
Accumulated undistributed net investment income............. 1,241,493
Accumulated net realized loss............................... (26,059,409)
--------------
NET ASSETS............................................. $1,624,467,880
--------------
--------------
NET ASSET VALUE PER SHARE,
86,011,075 SHARES OUTSTANDING (200,000,000 SHARES
AUTHORIZED OF $.01 PAR VALUE).............................
$18.89
--------------
--------------
</TABLE>

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996

<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $3,066,529 foreign withholding tax)....... $40,517,977
Interest (net of $14,010 foreign withholding tax)........... 1,922,169
-----------
TOTAL INCOME........................................... 42,440,146
-----------

EXPENSES
Plan of distribution fee.................................... 16,571,035
Investment management fee................................... 16,242,482
Custodian fees.............................................. 3,435,104
Transfer agent fees and expenses............................ 2,635,718
Shareholder reports and notices............................. 223,783
Registration fees........................................... 202,454
Professional fees........................................... 94,744
Directors' fees and expenses................................ 38,961
Organizational expenses..................................... 2,336
Other....................................................... 79,111
-----------

TOTAL EXPENSES......................................... 39,525,728
-----------

NET INVESTMENT INCOME.................................. 2,914,418
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. (849,851)
Foreign exchange transactions........................... 3,607,935
-----------

NET GAIN............................................... 2,758,084
-----------
Net change in unrealized appreciation/ depreciation on:
Investments............................................. 28,316,136
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ (11,571)
-----------

NET APPRECIATION....................................... 28,304,565
-----------

NET GAIN............................................... 31,062,649
-----------

NET INCREASE................................................ $33,977,067
-----------
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 2,914,418 $ 4,954,471
Net realized gain........................................... 2,758,084 20,313,294
Net change in unrealized appreciation....................... 28,304,565 (162,216,385)
---------------- ----------------
NET INCREASE (DECREASE)................................ 33,977,067 (136,948,620)
---------------- ----------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (33,521,569) (225,409)
Net realized gain........................................... -- (70,810,154)
---------------- ----------------
TOTAL.................................................. (33,521,569) (71,035,563)
---------------- ----------------
Net increase from capital stock transactions................ 182,463,571 78,945,257
---------------- ----------------
NET INCREASE (DECREASE)................................ 182,919,069 (129,038,926)
NET ASSETS:
Beginning of period......................................... 1,441,548,811 1,570,587,737
---------------- ----------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$1,241,493 AND $14,407,774, RESPECTIVELY)............... $ 1,624,467,880 $ 1,441,548,811
---------------- ----------------
---------------- ----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996

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. The Fund's investment objective is to
maximize capital appreciation of its investments. The Fund was incorporated in
Maryland on June 13, 1990 and commenced operations on November 30, 1990.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts and disclosures. Actual results could differ from those
estimates. The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American 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 Directors); (2)
listed options are valued at the latest sale price on the exchange on which they
are listed unless no sales of such options have taken place that day, in which
case they will be valued at the mean between their latest bid and asked price;
(3) 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; (4) when market quotations are not readily available,
including circumstances under which it is determined by the Investment Manager
or Sub-Advisor that sale and 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 Directors (valuation of debt securities for which market quotations are
not readily available may be based upon current market prices of securities
which are comparable in coupon, rating and maturity or an appropriate matrix
utilizing similar factors); and (5) short-term debt securities having a maturity
date of more than sixty days at the 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
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

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. Discounts
are accreted over the life of the respective securities. Interest income is
accrued daily.
C. OPTION ACCOUNTING PRINCIPLES -- When the Fund writes a call option, an amount
equal to the premium received is included in the Fund's Statement of Assets and
Liabilities as a liability which is subsequently marked-to-market to reflect the
current market value of the option written. If a written option either expires
or the Fund enters into a closing purchase transaction, the Fund realizes a gain
or loss 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
written call option is exercised, the Fund realizes a gain or loss from the sale
of the underlying security or currency and the proceeds from such sale are
increased by the premium originally received.
When the Fund purchases a call or put option, the premium paid is recorded as an
investment which is subsequently marked-to-market to reflect the current market
value. If a purchased option expires, the Fund will realize a loss to the extent
of the premium paid. If the Fund enters into a closing sale transaction, a gain
or loss is realized for the difference between the proceeds from the sale and
the cost of the option. If a put option is exercised, the cost of the security
or currency sold upon exercise will be increased by the premium originally paid.
If a call option is exercised, the cost of the security purchased upon exercise
will be increased by the premium originally paid.
D. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward contracts are
translated at the exchange rates prevailing at the end of the period; and (2)
purchases, sales, income and expenses are translated at the exchange rates
prevailing on the respective dates of such transactions. The resultant exchange
gains and losses are included in the Statement of Operations as realized and
unrealized gain/loss on foreign exchange transactions. Pursuant to U.S. Federal
income tax regulations, certain foreign exchange gains/losses included in
realized and unrealized gain/loss are included in or are a reduction of ordinary
income for federal income tax purposes. The Fund does not isolate that portion
of the results of operations arising as a result of changes in the foreign
exchange rates from the changes in the market prices of the securities.
E. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized gain/loss on
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

foreign exchange transactions. 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 ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
H. ORGANIZATIONAL EXPENSES -- Dean Witter InterCapital Inc. (the "Investment
Manager") paid the organizational expenses of the Fund in the amount of
approximately $142,000 which have been reimbursed for the full amount thereof.
Such expenses were fully amortized as of November 29, 1995.
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 1.0% to the portion of daily net assets not exceeding $1
billion and 0.95% to the portion of daily net assets in excess of $1 billion.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

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 ("Morgan Grenfell" or 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 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 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.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered, may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.
Although there is no legal obligation for the Fund to pay expenses incurred in
excess of payments made to the Distributor under the Plan and the proceeds of
contingent deferred sales charges paid by investors upon redemption of shares,
if for any reason the Plan is terminated, the Directors will consider at that
time the manner in which to treat such expenses. The Distributor has advised the
Fund that such excess amounts, including carrying charges, totaled $48,277,700
at October 31, 1996.
The Distributor has informed the Fund that for the year ended October 31, 1996,
it received approximately $3,771,000 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 year ended October 31, 1996 aggregated
$932,691,930 and $794,751,338, respectively.
For the year ended October 31, 1996, the Fund incurred $335,464 in brokerage
commissions with affiliates of Morgan Grenfell for portfolio transactions
executed on behalf of the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At October 31, 1996, the Fund had
transfer agent fees and expenses payable of approximately $266,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Directors of the Fund who will have served as independent
Directors for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended October 31, 1996 included
in Directors' fees and expenses in the Statement of Operations amounted to
$17,713. At October 31, 1996, the Fund had an accrued pension liability of
$49,330 which is included in accrued expenses in the Statement of Assets and
Liabilities.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

5. CAPITAL STOCK
Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold..................................................... 38,199,038 $ 744,616,070 26,287,993 $ 491,348,677
Reinvestment of dividends and distributions.............. 1,685,192 31,243,453 3,643,200 67,435,626
----------- -------------- ----------- --------------
39,884,230 775,859,523 29,931,193 558,784,303
Repurchased.............................................. (30,677,011) (593,395,952) (25,829,636) (479,839,046)
----------- -------------- ----------- --------------
Net increase............................................. 9,207,219 $ 182,463,571 4,101,557 $ 78,945,257
----------- -------------- ----------- --------------
----------- -------------- ----------- --------------
</TABLE>

6. FEDERAL INCOME TAX STATUS
At October 31, 1996, the Fund had a net capital loss carryover of approximately
$19,068,000 of which $3,193,000 will be available through October 31, 2003, and
$15,875,000 will be available through October 31, 2004 to offset future capital
gains to the extent provided by regulations.
As of October 31, 1996, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies
("PFICs") and capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to foreign currency gains and tax adjustments
on PFICs sold by the Fund. To reflect reclassifications arising from permanent
book/ tax differences for the year ended October 31, 1996, accumulated net
realized loss was charged and accumulated undistributed net investment income
was credited $17,440,870.
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.
At October 31, 1996, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996, CONTINUED

At October 31, 1996, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.
8. COMMITMENTS
As of October 31, 1996, the Fund had purchased shares which are subject to
installment payments. At October 31, 1996, the Fund had outstanding commitments
as follows:

<TABLE>
<CAPTION>
TOTAL
OUTSTANDING
ISSUER COMMITMENT INSTALLMENT PAYMENT TERMS
- ------------------------- ----------- ------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Co. of China $ 158,000 Balance payable in one installment upon notification by the issuer.
</TABLE>
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of capital stock outstanding
throughout each period:

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR ENDED OCTOBER 31 NOVEMBER 30, 1990*
----------------------------------------------------------- THROUGH
1996 1995 1994 1993 1992** OCTOBER 31, 1991
- ---------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of
period....................... $ 18.77 $ 21.60 $ 19.80 $ 12.69 $ 11.72 $ 10.00
----------- -------- -------- -------- -------- ------

Net investment income
(loss)....................... 0.05 0.08 (0.10) (0.04) (0.01) 0.06
Net realized and unrealized
gain (loss).................. 0.50 (1.94) 2.22 7.15 1.14 1.69
----------- -------- -------- -------- -------- ------

Total from investment
operations................... 0.55 (1.86) 2.12 7.11 1.13 1.75
----------- -------- -------- -------- -------- ------

Less dividends and
distributions from:
Net investment income...... (0.43) -- -- -- (0.01) (0.03)
Net realized gain.......... -- (0.97) (0.32) -- (0.15) --
----------- -------- -------- -------- -------- ------

Total dividends and
distributions................ (0.43) (0.97) (0.32) -- (0.16) (0.03)
----------- -------- -------- -------- -------- ------

Net asset value, end of
period....................... $ 18.89 $ 18.77 $ 21.60 $ 19.80 $ 12.69 $ 11.72
----------- -------- -------- -------- -------- ------
----------- -------- -------- -------- -------- ------

TOTAL INVESTMENT RETURN+...... 3.00% (8.65)% 10.69% 56.13% 9.86% 17.54%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses...................... 2.39% 2.45% 2.41% 2.38% 2.77% 2.43%(2)(3)

Net investment income
(loss)....................... 0.18% 0.35% (0.70)% (0.46)% (0.30)% 0.61%(2)(3)

SUPPLEMENTAL DATA:
Net assets, end of period, in
millions..................... $1,624 $1,442 $1,571 $694 $177 $86

Portfolio turnover rate....... 49% 50% 35% 30% 73% 70%(1)

Average commission rate
paid......................... $0.0095 -- -- -- -- --
<FN>

- ---------------------
* Commencement of operations.
** Net investment loss was computed based upon the monthly average shares
outstanding.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all expenses that were assumed or waived by the
Investment Manager, the above annualized expense and net investment income
ratios would have been 2.83% and 0.22%, respectively.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
OF DEAN WITTER PACIFIC GROWTH FUND INC.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Pacific Growth Fund
Inc. (the "Fund") at October 31, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended and for the period November 30, 1990 (commencement of
operations) through October 31, 1991, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1996 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
DECEMBER 17, 1996

- --------------------------------------------------------------------------------
1996 FEDERAL TAX NOTICE (UNAUDITED)
For the year ended October 31, 1996, the Fund has elected,
pursuant to Section 853 of the Internal Revenue Code, to
pass-through foreign taxes of $0.03 per share to its shareholders.
The Fund generated net foreign source income of $0.09 per share
with respect to this election.
<PAGE>

DEAN WITTER PACIFIC GROWTH FUND
GROWTH OF $10,000
DATE TOTAL MSCI WORLD INDEX LIPPER
November 30, 1990 $10,000 $10,000 $10,000
October 31, 1991 $11,754 $11,561 $11,563
October 31, 1992 $12,913 $10,735 $11,036
October 31, 1993 $20,162 $13,392 $15,811
October 31, 1994 $22,297 $14,182 $17,607
October 31, 1995 $20,387 $15,264 $15,943
October 31, 1996 $20,899 (3) $17,474 $16,756

AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEAR LIFE OF FUND
-----------------------------------------------------
3.00 (1) 12.30 (1) 13.35 (1)
-2.00 (2) 12.05 (2) 13.26 (2)
-----------------------------------------------------
-----------------------------------------------------
___Fund ___MSCI (4) ___LIPPER (5)
-----------------------------------------------------

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.

-----------------------------------

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.

(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%
5 year-2%, since inception - 1%). See the Fund's current prospectus for
complete details on fees and sales charges.

(3) Closing value after the deduction of a 1% CDSC, assuming a complete
redemption on October 31, 1996.

(4) The Morgan Stanley Capital International World Index (MSCI) measures
performance for a diverse range of global stock markets including the U.S.,
Canada, Europe, Australia, New Zealand and the Far East. The index does
not include any expenses, fees or charges or reinvestment of dividends.
The Index is unmanaged and should not be considered an investment.

(5) The Lipper Pacific Region Funds Average tracks the performance of funds
which invest in equity securities whose primary trading markets or
operations are concentrated in the Western Pacific basin region or a single
country within this region, as reported by Lipper Analytical Services.