<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC. TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS APRIL 30, 1997
DEAR SHAREHOLDER:
Performance in the markets of the Pacific Basin varied considerably during the
six-month period ended April 30, 1997. The region's markets got off to a good
start in November, buoyed by strength in U.S. equities and bonds. In addition,
an improving U.S. semiconductor book-to-bill ratio was seen as a sign of
recovery in the global electronics industry, to which the region is heavily
exposed. However, during the first few months of 1997 the region's markets
retraced much of these gains as increased volatility on Wall Street, uncertainty
about the future direction of U.S. interest rates and a strong U.S. dollar
depressed the region. Furthermore, repercussions from a rapidly deteriorating
Thai economy were felt throughout the region, particularly in the Philippines
and Malaysia, where investors reacted negatively to central bank measures to
restrain lending to the property sector.
A key event of the period was the death of China's paramount leader Deng Xiao
Peng. This event had been expected to trigger a short period of sharp weakness
in the region's markets, owing to uncertainty over the succession. There was
some weakness, particularly in Hong Kong, but the brief downturn was mostly
recouped before concerns about U.S. interest rates set in. It is encouraging
that this long-feared event has passed without substantial market volatility.
WEAKNESS IN THAILAND AND STRENGTH IN TAIWAN
Thailand remained under considerable pressure throughout the period as the
current-account deficit problems of 1996 continued into 1997. This affected both
GNP forecasts and corporate earnings growth. In addition, the Thai currency, the
baht, has been under pressure as speculation has grown that it would have to be
devalued in order for domestic interest rates to fall and to ease the tight
monetary squeeze on an already weak domestic economy. Finance, bank and real
estate stocks were particularly soft as property-related bad debts and
bankruptcies grew.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1997, CONTINUED
By contrast, Taiwan recorded strong gains, led by electronics stocks, which
continued to rally sharply on the back of signs of recovery in the global
electronics cycle. In addition, the inclusion of Taiwan in Morgan Stanley
Capital International (MSCI) regional indexes in September 1996 has resulted in
an ongoing inflow of foreign funds, providing strong support for the market.
FUND PERFORMANCE
Against this backdrop, Dean Witter Pacific Growth Fund produced a total return
of -4.56 percent for the six-month period ended April 30, 1997. During this
period, the Morgan Stanley Capital International World Index (MSCI World Index)
and the Lipper Pacific Region Funds Index produced returns of 6.76 percent and
- -2.62 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 Index tracks the performance of funds that invest in equity
securities whose primary trading markets or operations are concentrated in the
Pacific region or a single country within this region.
PORTFOLIO HOLDINGS AND INVESTMENT STRATEGY
The Fund's largest overweighting remains Hong Kong. Morgan Grenfell Investment
Services Limited, the Fund's sub-adviser, believes that the recent positive
response from Hong Kong to better news from the United States regarding
inflationary pressures is encouraging, but developments in China will become
increasingly important determinants of Hong Kong's performance moving forward.
The resurgence of growth in China, which should stem from further monetary
easing, will underpin growth in Asia in general and in Hong Kong in particular.
The return of Hong Kong to China at midnight, June 30, 1997, is imminent and,
while this will clearly be a focus of attention and media comment, Morgan
Grenfell believes that the transition will go smoothly and Hong Kong's new
status will be beneficial to its long-term economic development. The portfolio's
Hong Kong holdings remain overweighted in real estate-related stocks for Hong
Kong's commercial and office landlords such as Hong Kong Land Holdings Ltd.,
Great Eagle Holdings Ltd., Wharf (Holdings) Ltd. and Amoy Properties, Ltd.
At the other end of the spectrum, the Fund remains underweighted in Thailand,
with no exposure to its finance and property sectors and only selective holdings
in high-quality banks such as Bangkok Bank PCL. Energy stocks, such as PTT
Exploration and Production PCL, Lanna Lignite Public Co., Ltd., Cogeneration
Public Co. and Ban Pu Coal Co., Ltd., offer longer-term attractions while
performing defensively in the current poor market environment.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1997, CONTINUED
Among the smaller markets, Indonesia continues to look most attractive. Earnings
are rising strongly on the back of robust investment driven by GDP growth and
accelerating deregulation of a number of industries. While some political
jitters are possible before parliamentary elections in late May, at current
valuation levels, Morgan Grenfell believes that any increase in market
volatility is overdiscounted. Within this market, the Fund is focused on banks
(which are beneficiaries of rapidly falling deposit rates) and on consumer
stocks such as PT Kalbe Farma (medical products & supplies) and PT Ramayana
Lestari Sentosa (retail - department stores), both beneficiaries of rising
disposable income.
The Fund retains a small exposure (10.3 percent) to the Japanese stock market,
which has begun to perform better since the beginning of the new fiscal year in
April. Japan's economic recovery continues, and manufacturing companies, aided
by a weak yen, are now in their third successive year of earnings growth.
According to Morgan Grenfell, this market should continue to recover over the
balance of 1997 from the poor start engendered by concerns about a relapse into
recession and very depressed investor sentiment. They do not, however, expect
the market to provide better returns overall than the rest of the region.
LOOKING AHEAD
Morgan Grenfell remains positive about the outlook for the markets of the
Pacific Basin over the long term. The growth path of China remains critical to
their investment outlook and, with economic indicators pointing to a modest
acceleration in GDP growth without inflationary pressures, the combination of
further monetary easing and stronger economic growth is a potent one. Morgan
Grenfell's view of Chinese policy remains unchanged: economic imperatives (e.g.,
the need to create jobs) will continue to dictate economic policy; any further
change in leadership will occur constitutionally and will not lead to
significant disruption. In addition, any change in Chinese leadership has no
implications for the handover of Hong Kong, which is expected to go smoothly and
to be viewed positively by investors.
For the region as a whole, with inflationary pressures receding and current
accounts stabilizing, helped by a recovery in the global electronics cycle, a
scenario of falling interest rates and robust economic growth could unfold later
in the year, although this would depend on the extent of further monetary
tightening in the United States. Overall, Morgan Grenfell is forecasting GDP
growth of 6 to 7 percent for 1997, while corporate earnings are expected to rise
by 14 to 15 percent, giving a 1997 prospective price-earnings ratio of about 16
times. This level of valuation puts the region at the
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1997, CONTINUED
bottom of historic ranges, at levels similar to those reached during the Gulf
War or the Tiananmen crisis of 1989, and in Morgan Grenfell's view more than
discounts any instability in the U.S. yield curve.
We appreciate your support of 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 APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS,
WARRANTS, RIGHTS AND BONDS (97.0%)
AUSTRALIA(3.8%)
BANKING
700,000 Australia & New Zealand
Banking Group Ltd.......... $ 4,476,900
-----------------
BUILDING & CONSTRUCTION
2,050,000 Boral Ltd.................... 6,051,194
-----------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
1,200,000 Foster's Brewing Group
Ltd........................ 2,473,891
6,000,000 Goodman Fielder Wattie
Ltd........................ 7,871,472
-----------------
10,345,363
-----------------
METALS & MINING
370,000 Broken Hill Proprietary Co.
Ltd........................ 5,223,909
215,000 CRA Ltd...................... 3,210,124
2,000,000 North Ltd.................... 7,064,021
-----------------
15,498,054
-----------------
METALS NON-FERROUS
3,600,000 M.I.M. Holdings Ltd.......... 4,694,771
-----------------
OIL RELATED
1,500,000 Santos Ltd................... 5,856,750
187,500 Santos Ltd. (Rights)*........ 150,811
-----------------
6,007,561
-----------------
RETAIL STORES
1,000,000 Coles Myer Ltd............... 4,865,007
-----------------
TOTAL AUSTRALIA.............. 51,938,850
-----------------
CHINA (0.8%)
AUTOMOTIVE
6,470,000 Qingling Motors Co........... 3,549,897
-----------------
TRANSPORTATION
2,040,000 Jinhui Shipping and
Transportation Ltd......... 1,576,773
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
UTILITIES
100,000 Huaneng Power International,
Inc. (Class N) (ADR)*...... $ 2,425,000
245,000 Shandong Huaneng Power Co.
Ltd. (ADR)................. 2,848,125
-----------------
5,273,125
-----------------
TOTAL CHINA.................. 10,399,795
-----------------
HONG KONG (33.8%)
BANKING
2,242,400 Bank of East Asia, Ltd....... 7,714,944
1,742,838 Dao Heng Bank Group Ltd...... 8,279,943
1,287,000 Guoco Group Ltd.............. 6,114,330
2,225,000 Hang Seng Bank Ltd........... 25,062,129
326,600 HSBC Holdings PLC............ 8,264,085
5,360,000 International Bank of Asia... 3,044,668
-----------------
58,480,099
-----------------
CONGLOMERATES
1,000,000 China Merchants Hai Hong
Holdings................... 1,071,521
3,035,422 Henderson China Holding
Ltd........................ 5,231,459
7,600,000 Hutchison Whampoa, Ltd....... 56,416,215
664,800 Jardine Matheson Holdings
Ltd........................ 3,656,400
830,000 Shanghai Industrial Holdings
Ltd........................ 4,671,831
2,900,000 Swire Pacific Ltd. (Class
A)......................... 22,369,610
-----------------
93,417,036
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
2,365,000 ASM Pacific Technology
Ltd........................ 1,679,254
11,486,000 Elec & Eltek International
Holdings Ltd............... 2,965,660
-----------------
4,644,914
-----------------
ENGINEERING & CONSTRUCTION
7,000,000 Road King Infrastructure
Ltd.*...................... 6,913,246
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES
9,237,000 Manhattan Card Co. Ltd....... $ 2,861,967
-----------------
HOTELS/MOTELS
18,048,000 CDL Hotels International,
Ltd........................ 7,863,672
-----------------
INVESTMENT COMPANIES
100,000 Investment Co. of China***
*.......................... 471,000
-----------------
LIFE INSURANCE
2,328,000 National Mutual Asia Ltd..... 2,404,338
-----------------
PUBLISHING
7,122,000 South China Morning Post
(Holdings) Ltd............. 6,114,291
-----------------
REAL ESTATE
5,200,000 Amoy Properties, Ltd......... 5,135,554
5,490,000 Cheung Kong (Holdings)
Ltd........................ 48,195,198
2,990,000 China Resources Enterprise
Ltd........................ 8,260,522
$ 3,140K Great Eagle Financial
Holdings 3.25% due 04/03/01
(Conv.).................... 3,140,000
2,041,000 Great Eagle Holdings Ltd..... 6,099,813
$ 1,000K Hd Finance (Cayman) Ltd.
6.75% due 06/01/00
(Conv.).................... 1,080,000
500,000 Henderson Land Development
Co. Ltd.................... 4,211,851
900,880 HKR International Ltd........ 1,110,690
4,775,800 Hon Kwok Land Investment
Ltd........................ 1,603,031
3,274,000 Hong Kong Land Holdings
Ltd........................ 6,809,920
377,200 Hysan Development Co. Ltd.... 1,042,097
2,462,000 Lai Sun Development Co.,
Ltd........................ 3,003,602
544,308 Lai Sun Hotels International
Ltd. (Warrants due
04/30/99)*................. 51,999
3,800,000 New World Development Co.,
Ltd........................ 21,928,737
565,000 Realty Development Corp.
(Class A).................. 2,129,873
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
4,000,000 Silver Grant International
Industries Ltd............. $ 2,155,951
2,054,000 Sino Land Co................. 1,948,993
3,882,500 Sun Hung Kai Properties
Ltd........................ 42,103,021
5,300,000 Wharf (Holdings) Ltd......... 20,047,767
-----------------
180,058,619
-----------------
RETAIL - SPECIALTY APPAREL
1,000,000 Dickson Concepts
International Ltd. (New)... 3,692,228
-----------------
TELECOMMUNICATIONS
22,415,200 Hong Kong Telecommunications
Ltd........................ 38,487,240
-----------------
TRANSPORTATION
2,000,000 Cathay Pacific Airways....... 3,111,283
7,132,000 Cosco Pacific Ltd............ 9,989,956
7,511,000 The Guangshen Railway Co.,
Ltd........................ 3,587,748
-----------------
16,688,987
-----------------
UTILITIES
2,430,000 China Light & Power Co.,
Ltd........................ 10,948,490
9,120,000 Hong Kong & China Gas Co.
Ltd........................ 14,481,797
3,350,000 Hong Kong Electric Holdings
Ltd........................ 11,849,987
-----------------
37,280,274
-----------------
TOTAL HONG KONG.............. 459,377,911
-----------------
INDIA (0.7%)
BANKS
236,000 State Bank of India (GDR)*... 5,782,000
-----------------
TELECOMMUNICATIONS
185,000 Videsh Sanchar Nigam Ltd.
(GDR)*..................... 3,616,750
-----------------
TOTAL INDIA.................. 9,398,750
-----------------
INDONESIA (7.8%)
AUTO
9,000,000 PT Gadjah Tunggal............ 4,075,751
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
BANKING
6,241,000 PT Bank Bira................. $ 8,414,687
4,000,000 PT Bank Dagang Nasional
Indonesia.................. 3,993,413
1,500,000 PT Bank Dagang Nasional
Indonesia (Rights)*........ 1,497,530
8,900,725 PT Bank Internasional
Indonesia.................. 6,412,626
906,730 PT Bank Internasional
Indonesia (Warrants due
01/17/00)*................. 289,302
6,000,000 PT Bank Negara Indonesia..... 3,334,706
2,332,500 PT Pan Indonesia Bank........ 3,408,965
-----------------
27,351,229
-----------------
BUILDING MATERIALS
19,333,096 PT Mulia Industrindo*........ 12,137,905
-----------------
CONSTRUCTION EQUIPMENT
2,712,000 PT United Tractors........... 8,094,689
-----------------
CONSTRUCTION PLANT & EQUIPMENT
370,000 PT Citra Marga Nusaphala
Persada.................... 323,693
-----------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
1,251,000 PT Hanjaya Mandala
Sampoerna.................. 5,034,386
-----------------
FOREST PRODUCTS, PAPER & PACKING
11,734,874 PT Indah Kiat Pulp & Paper
Corp....................... 9,541,530
1,241,215 PT Pabrik Kertas Tjiwi
Kimia...................... 1,277,496
-----------------
10,819,026
-----------------
INDUSTRIALS
2,142,500 PT Bukaka Teknik Utama....... 1,345,127
-----------------
INVESTMENT COMPANIES
5 Peregrine Indonesia Fund Ltd.
(Units)++ ** *............. 2,648,750
-----------------
MEDICAL PRODUCTS & SUPPLIES
3,800,000 PT Kalbe Farma............... 3,793,742
-----------------
METALS
4,073,000 PT Tambang Timah............. 6,707,287
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
PLANTATION
1,529,000 PT London Sumatra
Indonesia.................. $ 3,965,706
-----------------
PROPERTY
237,000 Kawasan Jababeka - 144A**
(GDR)*..................... 2,725,500
-----------------
RETAIL - DEPARTMENT STORES
2,910,000 PT Ramayana Lestari
Sentosa*................... 7,068,341
-----------------
TELECOMMUNICATIONS
7,058,000 PT Telekomunikasi
Indonesia.................. 10,242,672
-----------------
TOTAL INDONESIA.............. 106,333,804
-----------------
JAPAN (10.3%)
APPAREL
19,000 World Co., Ltd............... 707,638
-----------------
AUTO PARTS
52,000 Bridgestone Metalpha Corp.... 413,543
-----------------
AUTOMOTIVE
81,000 Honda Motor Co............... 2,512,913
262,000 Isuzu Motors, Ltd............ 984,047
84,000 Toyota Motor Corp............ 2,434,016
-----------------
5,930,976
-----------------
BANKING
126,000 Asahi Bank, Ltd.............. 770,882
185,000 Bank of Tokyo-Mitsubishi
Ltd........................ 2,927,953
75,000 Dai-Ichi Kangyo Bank......... 820,866
151,000 Mitsui Trust & Banking Co.,
Ltd........................ 860,819
95,000 Sanwa Bank, Ltd.............. 1,017,323
94,000 Sumitomo Bank................ 1,073,228
127,000 Sumitomo Trust & Banking..... 1,050,000
-----------------
8,521,071
-----------------
BUILDING & CONSTRUCTION
55,000 Kaneshita Construction....... 388,032
-----------------
BUILDING MATERIALS
200,000 Sanwa Shutter................ 1,426,772
64,000 Toyo Shutter................. 273,638
-----------------
1,700,410
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
BUSINESS SERVICES
31,000 Secom Co..................... $ 1,842,913
18,000 Tanseisha Co., Ltd........... 95,669
-----------------
1,938,582
-----------------
CHEMICALS
520,000 Mitsubishi Chemical Corp..... 1,748,346
304,000 Nippon Zeon Co. Ltd.......... 1,388,347
92,000 Shin-Etsu Chemical Co........ 1,854,488
200,000 Sumitomo Bakelite Co. Ltd.... 1,346,457
-----------------
6,337,638
-----------------
COMMERCIAL SERVICES
22,000 Nichii Gakkan Co............. 989,134
-----------------
COMPUTER SOFTWARE & SERVICES
55,000 Ines Corp.................... 710,236
52,000 Meitec....................... 1,040,000
30,000 Nintendo Co., Ltd............ 2,175,591
34,000 Ricoh Elemex................. 350,709
-----------------
4,276,536
-----------------
COMPUTERS
16,400 Enix Corp.................... 313,795
22,000 Nidec Corp................... 938,898
-----------------
1,252,693
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
112,000 Aiwa Co...................... 1,931,339
Y 100,000K Canon, Inc. 1.20% due
12/20/05 (Conv.)........... 1,566,929
Y 50,000K Canon, Inc. 1.30% due
12/19/08 (Conv.)........... 791,732
230,000 Fujitsu, Ltd................. 2,390,551
237,000 Hitachi, Ltd................. 2,146,063
30,000 Kyocera Corp................. 1,795,276
51,000 Mitsui High-Tec.............. 1,100,315
49,000 Murata Manufacturing Co.,
Ltd........................ 1,824,961
52,800 Nitto Electric Works......... 760,819
140,000 Sharp Corp................... 1,818,898
42,400 Sony Corp.................... 3,084,850
27,000 TDK Corp..................... 1,945,276
-----------------
21,157,009
-----------------
ELECTRONICS
24,000 Kojima Co, Ltd.*............. 372,284
16,000 Maspro Denkoh Corp........... 197,795
29,000 Rohm Co., Ltd................ 2,246,929
-----------------
2,817,008
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS - SEMICONDUCTORS/
COMPONENTS
200,000 Toshiba Ceramics Co., Ltd.... $ 1,459,843
-----------------
ELECTRONICS - SPECIALTY
76,000 Taiyo Yuden Co., Ltd......... 1,023,307
-----------------
ENGINEERING & CONSTRUCTION
267,000 Kajima Corp.................. 1,215,165
27,500 Nitto Kohki Co. Ltd.......... 777,362
-----------------
1,992,527
-----------------
ENTERTAINMENT
12,000 H.I.S. Company Ltd........... 505,512
33,700 Sony Music Entertainment
Inc........................ 1,156,945
-----------------
1,662,457
-----------------
FINANCIAL SERVICES
170,000 Daiwa Securities Co., Ltd.... 1,131,102
15,400 Nichiei Co., Ltd. (Kyoto).... 1,212,598
100,000 Nomura Securities Co. Ltd.... 1,118,110
8,800 Sanyo Shinpan Finance Co.,
Ltd........................ 431,685
-----------------
3,893,495
-----------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
101,000 Nippon Meat Packers, Inc..... 1,002,047
-----------------
HEALTH & PERSONAL CARE
42,000 Kawasumi Laboratories,
Inc........................ 479,528
-----------------
HOUSEHOLD FURNISHINGS &
APPLIANCES
50,000 Beltecno Corp................ 271,654
-----------------
INDUSTRIALS
Y 43,000K Nippon Densan Corp. 1.00%
09/30/03 (Conv.)........... 496,024
100,000 Tokai Carbon Co., Ltd........ 366,929
-----------------
862,953
-----------------
INSURANCE
162,000 Tokio Marine & Fire Insurance
Co......................... 1,581,732
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
MACHINERY
37,000 Aichi Corp................... $ 189,370
165,000 Amada Co., Ltd............... 1,232,953
150,000 Daifuku Co. Ltd.............. 1,724,409
33,000 Fuji Machine Manufacturing
Co......................... 930,236
19,800 Keyence Corp................. 2,416,535
250,000 Minebea Co., Ltd............. 2,086,614
Y 21,000K Minebea Co. Ltd. 0.80% due
03/31/03 (Conv.)........... 206,693
263,000 Mitsubishi Heavy Industries,
Ltd........................ 1,735,386
114,000 Nippon Thompson Co........... 767,480
200,000 OSG Corp..................... 1,382,677
12,000 Sansei Yusoki Co., Ltd....... 83,150
5,000 Sintokogio................... 31,929
63,000 Takuma Co., Ltd.............. 684,567
100,000 Tsudakoma.................... 366,929
-----------------
13,838,928
-----------------
MANUFACTURING
40,000 Arcland Sakamoto............. 384,252
86,000 Itoki Crebio Corp............ 459,795
47,000 Nichiha Corp................. 625,433
104,000 Nippon Electric Glass Co.,
Ltd........................ 1,596,850
-----------------
3,066,330
-----------------
MERCHANDISING
31,300 Misumi Corp.................. 537,276
-----------------
METALS & MINING
667,000 Nippon Steel Co.............. 1,901,213
77,000 Sumitomo Sitix Corp.......... 1,424,803
-----------------
3,326,016
-----------------
METALS NON-FERROUS
279,000 Fujikura Ltd................. 2,082,614
380,000 Mitsui Mining & Smelting..... 1,490,079
-----------------
3,572,693
-----------------
MULTI-INDUSTRY
26,700 Trusco Nakayama Corp......... 418,370
51,000 Yamae Hisano................. 358,606
-----------------
776,976
-----------------
NATURAL GAS
365,000 Tokyo Gas Co., Ltd........... 870,827
-----------------
OIL RELATED
187,000 General Sekiyu............... 1,029,236
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
PHARMACEUTICALS
136,000 Daiichi Pharmaceutical....... $ 2,184,567
90,000 Eisai Co. Ltd................ 1,559,055
80,000 Terumo Corp.................. 1,215,748
-----------------
4,959,370
-----------------
REAL ESTATE
68,000 Cesar Co..................... 252,189
58,700 Chubu Sekiwa Real Estate,
Ltd........................ 503,803
223,000 Mitsui Fudosan Co............ 2,546,063
64,000 Sekiwa Real Estate........... 398,110
-----------------
3,700,165
-----------------
RETAIL
22,850 Ministop Co., Ltd............ 577,547
23,000 Olympic Corp................. 439,987
14,000 Otsuka Kagu Limited.......... 1,080,315
55,000 Shimachu Co., Ltd............ 1,320,866
19,200 Sundrug Co., Ltd............. 306,898
134,000 Tokyo Style.................. 1,614,331
24,000 Xebio Co. Ltd................ 563,150
-----------------
5,903,094
-----------------
RETAIL - DEPARTMENT STORES
142,000 Hankyu Department Stores..... 1,218,740
-----------------
RETAIL - GENERAL MERCHANDISE
31,200 Circle K Japan Co. Ltd....... 1,432,252
26,000 Seven-Eleven Japan........... 1,648,032
-----------------
3,080,284
-----------------
RETAIL - SPECIALTY
31,000 Aderans Co., Ltd............. 698,110
-----------------
STEEL
811,000 Sumitomo Metal Industries.... 2,017,921
88,000 Tokyo Steel Manufacturing.... 942,362
-----------------
2,960,283
-----------------
TELECOMMUNICATIONS
335 DDI Corp..................... 2,223,661
3,000 Forval Corp.................. 78,661
Y 45,000K Forval Corp.1.35% 09/30/03
(Conv.).................... 329,882
171,000 Nippon Comsys Corp........... 1,952,362
64,050 Nippon Denwa Shisetsu........ 479,114
358 Nippon Telegraph & Telephone
Corp....................... 2,522,913
-----------------
7,586,593
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
TEXTILES
25,000 Chuo Warehouse Co............ $ 163,386
500,000 Mitsubishi Rayon Co., Ltd.... 1,877,953
300,000 Nitto Boseki Co. Ltd......... 918,898
-----------------
2,960,237
-----------------
TRANSPORTATION
180,000 Fukuyama Transporting Co..... 1,070,079
325,000 Ishikawajima-Harima Heavy
Industry................... 1,210,433
30,000 Kanto Seino Transportation... 628,347
205,000 Tokyu Corp................... 1,075,039
-----------------
3,983,898
-----------------
UTILITIES - ELECTRIC
69,300 Hokkaido Electric Power...... 1,080,425
-----------------
WHOLESALE & INTERNATIONAL TRADE
244,000 Mitsui & Co.................. 1,861,701
29,000 Satori Electric Co. Ltd...... 787,795
-----------------
2,649,496
-----------------
WHOLESALE DISTRIBUTOR
25,000 Fujimi Inc.*................. 1,318,898
-----------------
TOTAL JAPAN.................. 139,777,688
-----------------
MALAYSIA (16.1%)
AGRICULTURE
2,100,000 Highlands & Lowlands
Berhad..................... 3,330,544
-----------------
AUTOMOTIVE
1,112,000 Diversified Resources
Berhad..................... 2,658,697
617,000 Oriental Holdings Berhad..... 4,671,449
375,000 Perusahaan Otomobil Nasional
Berhad*.................... 2,241,482
1,205,000 Tan Chong Motor Holdings
Berhad..................... 2,237,617
481,000 UMW Holdings Berhad.......... 2,530,066
-----------------
14,339,311
-----------------
BANKING
499,000 Commerce Asset Holdings
Berhad..................... 2,982,666
950,000 DCB Holdings Berhad.......... 3,085,276
950,000 Kwong Yik Bank............... 3,331,341
1,092,000 Malayan Banking Berhad....... 10,878,661
3,071,333 Public Bank Berhad........... 5,091,351
-----------------
25,369,295
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
BUILDING & CONSTRUCTION
71,000 Dialog Group Berhad.......... $ 1,103,407
1,069,000 Gamuda Berhad................ 3,855,131
150,000 Gamuda Berhad (Warrants due
12/29/01)*................. 184,100
1,700,000 Lingkaran Trans Kota Holdings
Berhad*.................... 3,691,971
2,410,000 Sungei Way Holdings Berhad... 5,522,016
491,750 Sungei Way Holdings Berhad
(Warrants due 06/29/99)*... 570,230
1,350,968 United Engineers Malaysia
Berhad..................... 9,582,479
-----------------
24,509,334
-----------------
BUILDING MATERIALS
1,900,000 Kedah Cement Berhad.......... 2,952,779
-----------------
CONGLOMERATES
1,800,000 Renong Berhad................ 2,467,424
1,865,000 Sime Darby Berhad............ 5,759,613
-----------------
8,227,037
-----------------
CONSTRUCTION PLANT & EQUIPMENT
746,000 YTL Corp. Berhad............. 3,032,158
-----------------
DIVERSIFIED MANUFACTURING
2,000,000 Antah Holdings Berhad........ 2,837,219
4,230,000 Arab-Malaysian Development
Berhad..................... 2,781,231
-----------------
5,618,450
-----------------
ENGINEERING & CONSTRUCTION
350,000 Road Builder (M) Holdings
Berhad..................... 1,701,534
-----------------
FINANCIAL SERVICES
2,312,000 Affin Holdings Berhad........ 5,573,859
921,332 Arab Malaysian Finance
Berhad..................... 2,019,257
1,201,332 Arab Malaysian Finance Berhad
(Rights)*.................. 2,394
700,000 Hong Leong Credit Berhad..... 3,626,220
3,012,450 Public Finance Berhad........ 4,609,607
750,000 Rashid Hussain Berhad........ 4,991,034
-----------------
20,822,371
-----------------
INSURANCE
550,000 Malaysian Assurance Alliance
Berhad..................... 2,958,757
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
LEISURE
712,000 Genting Berhad............... $ 3,801,873
3,523,800 Magnum Corporation Berhad.... 5,588,653
849,000 Resorts World Berhad......... 3,129,408
-----------------
12,519,934
-----------------
MANUFACTURING
1,814,000 Berjaya Group Berhad......... 2,139,645
243,625 O.Y.L. Industries Berhad..... 1,825,125
-----------------
3,964,770
-----------------
MULTI-INDUSTRY
3,450,000 Multi-Purpose Holdings
Berhad..................... 5,636,581
1,900,000 Multi-Purpose Holdings Berhad
3.00% due 01/13/02 (Loan
Stock)..................... 707,910
1,140,000 Nylex Berhad................. 2,253,198
-----------------
8,597,689
-----------------
PAPER & FOREST PRODUCTS
475,000 Malaysian Pacific Industries
Berhad..................... 1,892,807
-----------------
PLANTATION
1,145,000 Kuala Lumpur Kepong Berhad... 2,965,730
-----------------
PUBLISHING
802,000 Star Publications............ 3,259,773
-----------------
REAL ESTATE
2,200,000 Hong Leong Properties
Berhad..................... 2,998,207
1,995,000 IOI Corporated Berhad........ 2,480,335
1,289,000 Malaysian Resources Corp.
Berhad..................... 3,698,267
3,161,000 Metroplex Berhad............. 3,426,149
1,782,000 Pelangi Berhad............... 1,895,971
2,012,000 Selangor Properties Berhad... 2,164,734
1,692,000 Sime UEP Properties Berhad... 3,371,189
-----------------
20,034,852
-----------------
RETAIL
1,335,000 LARUT Consolidated Berhad.... 1,399,103
-----------------
TELECOMMUNICATIONS
2,400,000 Telekom Malaysia Berhad...... 16,832,038
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
TRANSPORTATION
950,000 Konsortium Perkapalan
Berhad..................... $ 5,640,566
1,370,000 Malaysian Airline System
Berhad..................... 3,029,886
-----------------
8,670,452
-----------------
UTILITIES
229,000 Prime Utilities Berhad....... 1,916,318
147,000 Prime Utilities Berhad
(Warrants due 03/11/01)*... 292,887
294,000 Prime Utilities Berhad 1.00%
due 03/01/01 (Loan
Stock)..................... 82,008
5,051,000 Tenaga Nasional Berhad....... 23,347,918
112,100 YTL Power International
Berhad (Rights)*........... 151,879
-----------------
25,791,010
-----------------
TOTAL MALAYSIA............... 218,789,728
-----------------
PHILIPPINES (1.9%)
BANKING
480,000 Far East Bank & Trust Co..... 1,530,171
316,978 Philippine National Bank..... 2,081,108
487,587 Security Bank Corp.
(Rights)*.................. 869,700
-----------------
4,480,979
-----------------
BUILDING MATERIALS
883,000 Bacnotan Consolidated
Industries................. 2,178,178
-----------------
CONGLOMERATES
11,000,000 Aboitiz Equity Ventures
Inc.*...................... 960,152
4,417,500 First Philippine Holdings
Corp. (B Shares)........... 7,711,765
-----------------
8,671,917
-----------------
ENGINEERING & CONSTRUCTION
7,167,000 DMCI Holdings, Inc.*......... 3,671,897
-----------------
REAL ESTATE
14,000,000 Belle Corp.*................. 3,347,248
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
UTILITIES
663,818 Manila Electric Co. (B
Shares).................... $ 4,131,543
-----------------
TOTAL PHILIPPINES............ 26,481,762
-----------------
SINGAPORE (10.1%)
APPLIANCES & HOUSEHOLD DURABLES
1,296,000 Courts (Singapore) Ltd....... 1,639,372
-----------------
BANKING
1,278,250 Development Bank of
Singapore, Ltd............. 15,197,276
1,226,000 Overseas Chinese Banking
Corp., Ltd................. 14,321,836
261,000 Overseas Union Bank, Ltd..... 1,713,901
1,436,000 United Overseas Bank, Ltd.... 13,499,412
-----------------
44,732,425
-----------------
CONGLOMERATES
1,188,750 Keppel Corp. Ltd.*........... 5,176,695
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
2,270,000 Venture Manufacturing Ltd.... 6,433,262
-----------------
FINANCE
816,000 Hong Leong Finance Ltd....... 2,526,909
240,000 Hong Leong Finance Ltd.
(Warrants due 09/15/98)*... 131,057
-----------------
2,657,966
-----------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
288,000 Fraser & Neave Ltd........... 2,090,274
-----------------
HOTELS
1,269,000 Republic Hotels & Resorts
Ltd........................ 1,403,470
349,400 Republic Hotels & Resorts
Ltd. (Warrants due
07/12/00)*................. 140,079
-----------------
1,543,549
-----------------
MACHINERY
672,000 Van Der Horst Ltd............ 1,932,342
-----------------
METALS - MISCELLANEOUS
2,961,500 Amtek Engineering Ltd........ 5,117,682
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
PUBLISHING
374,000 Singapore Press Holdings
Ltd........................ $ 6,928,320
-----------------
REAL ESTATE
107,000 Bukit Sembawang Estates
Ltd........................ 2,204,051
1,511,400 City Developments, Ltd....... 12,223,253
1,248,000 DBS Land Ltd................. 4,037,216
576,000 Parkway Holdings Ltd......... 2,349,070
653,000 Singapore Land Ltd........... 3,046,762
2,400,000 United Overseas Land, Ltd.... 3,467,201
240,000 United Overseas Land, Ltd.
(Warrants due 05/28/01)*... 136,034
1,634,000 Wing Tai Holdings Ltd........ 4,224,207
-----------------
31,687,794
-----------------
SHIPBUILDING
1,216,000 Sembawang Corp., Ltd......... 5,253,335
-----------------
STEEL & IRON
1,920,000 Natsteel Ltd................. 5,202,461
-----------------
TRANSPORTATION
1,446,000 Singapore Airlines Ltd....... 12,793,807
-----------------
UTILITIES - TELECOMMUNICATIONS
2,342,000 Singapore Telecom............ 3,950,010
-----------------
TOTAL SINGAPORE.............. 137,139,294
-----------------
SOUTH KOREA (4.9%)
AIR TRANSPORT
8,770 Korean Air................... 164,462
-----------------
AUTOMOTIVE
63,250 Hyundai Motor Co., Ltd....... 1,809,234
36,000 Hyundai Motor Co., Ltd.
(GDR)...................... 316,800
-----------------
2,126,034
-----------------
BANKING
235,230 Cho Hung Bank................ 1,278,171
233,000 Cho Hung Bank Co. Ltd.
(GDR)...................... 1,262,860
68,941 Hana Bank.................... 896,775
184,833 Shinhan Bank................. 2,674,887
-----------------
6,112,693
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
BREWERY
42,841 Chosun Brewery Co............ $ 1,131,195
-----------------
BUILDING MATERIALS
138,710 Tong Yang Cement Co.......... 2,680,688
-----------------
COMMUNICATIONS - EQUIPMENT/
MANUFACTURERS
31,000 LG Information &
Communication Ltd.......... 3,065,169
-----------------
DISTRIBUTION
170,000 Daewoo Corp.................. 1,113,596
-----------------
ELECTRONIC & ELECTRICAL EQUIPMENT
46,000 Samsung Display Devices
Co......................... 2,150,112
111,991 Samsung Electronics (GDR).... 9,099,709
-----------------
11,249,821
-----------------
ENGINEERING & CONSTRUCTION
107,990 Dong-Ah Construction
Industrial Co.............. 2,050,597
79,432 Dong-Ah Construction
Industrial Co. (GDR)....... 710,916
251,798 Hyundai Engineering &
Construction Co............ 5,064,252
-----------------
7,825,765
-----------------
FOOD PROCESSING
52,800 Cheil Jedang Corp............ 2,610,337
-----------------
FOREST PRODUCTS, PAPER & PACKING
34,000 Han Kuk Paper Manufacturing
Co......................... 901,573
-----------------
INSURANCE
85,000 Oriental Fire & Marine
Insurance.................. 1,948,315
1,570 Samsung Fire & Marine
Insurance.................. 565,106
-----------------
2,513,421
-----------------
INVESTMENT COMPANIES
234,000 Atlantis Korean Smaller
Co's*...................... 1,579,500
65,000 Clemente Korea Emerging
Growth Fund*............... 357,500
-----------------
1,937,000
-----------------
OIL RELATED
136,829 Yukong, Ltd. (GDS)........... 2,444,473
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
STEEL & IRON
118,192 Pohang Iron & Steel Co.,
Ltd........................ $ 8,755,238
-----------------
TELECOMMUNICATIONS
494 Korea Mobile
Telecommunications Corp.... 401,335
-----------------
UTILITIES
190,640 Korea Electric Power Corp.... 5,697,780
3,380 Samchully Co................. 263,412
100,838 Seoul City Gas Go Ltd........ 5,325,153
-----------------
11,286,345
-----------------
TOTAL SOUTH KOREA............ 66,319,145
-----------------
TAIWAN (3.3%)
BANKS
470,000 China Development Corp....... 1,955,499
503,000 China Trust Commercial
Bank*...................... 946,310
333,000 International Commercial Bank
of China................... 837,319
393,000 United World Chinese
Commercial Bank*........... 1,009,515
-----------------
4,748,643
-----------------
BUILDING & CONSTRUCTION
757,000 Cathay Construction Corp..... 1,328,310
-----------------
BUILDING MATERIALS
132,550 Asia Cement Corp. (GDR)...... 2,385,900
-----------------
CHEMICALS
$ 2,000K Nan Ya Plastics Corp. 1.75%
due 07/09/01 (Conv.)....... 2,470,000
-----------------
COMPUTERS
211,000 Acer Inc.*................... 538,187
650,000 Microtek International,
Inc.*...................... 2,034,190
-----------------
2,572,377
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS
$ 1,900K Acer Peripherals Inc. 1.25%
due 11/27/06 (Conv.)....... $ 2,375,000
$ 2,100K Compal Electronics 1.00% due
11/21/03 (Conv.)........... 3,060,750
$ 1,000K Yageo Corp. 1.25% due 7/24/03
(Conv.).................... 1,660,000
-----------------
7,095,750
-----------------
ELECTRONICS - SEMICONDUCTORS/
COMPONENTS
387,000 Siliconware Precision
Industries Co.*............ 1,400,145
541,000 Taiwan Semiconductor
Manufacturing Co.*......... 1,839,870
-----------------
3,240,015
-----------------
FOOD PROCESSING
860,000 President Enterprises*....... 1,524,602
-----------------
INVESTMENT COMPANIES
380,000 Taiwan American Fund
(Pref.)*................... 7,030,000
-----------------
LIFE INSURANCE
309,000 Cathay Life Insurance Co.,
Ltd........................ 1,844,609
-----------------
MANUFACTURING
930,000 Formosa Plastic Corp......... 2,321,635
-----------------
PAPER PRODUCTS
1,490,000 Yuen Foong Yu Paper
Manufacturing Co., Ltd.*... 1,595,659
-----------------
STEEL & IRON
2,548,000 China Steel Corp............. 2,728,683
-----------------
TEXTILES
1,600,000 Formosa Chemical & Fiber
Corp....................... 2,315,485
-----------------
TRANSPORTATION
$ 2,000K U-Ming Marine Transport 1.50%
due 02/07/01 (Conv.)....... 1,650,000
-----------------
TOTAL TAIWAN................. 44,851,668
-----------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
<C> <S> <C>
THAILAND (3.5%)
BANKING
700,000 Bangkok Bank PCL............. $ 6,487,936
500,000 Thai Farmers Bank PCL........ 3,025,661
-----------------
9,513,597
-----------------
COAL
298,400 Ban Pu Coal Co., Ltd......... 4,845,714
851,400 Lanna Lignite Public Co.,
Ltd........................ 7,369,452
-----------------
12,215,166
-----------------
INVESTMENT COMPANIES
11,840,300 Ruang Khao 2 Fund
(Units)++.................. 3,491,778
-----------------
OIL RELATED
800,000 PTT Exploration & Production
PCL........................ 10,233,627
-----------------
TELECOMMUNICATIONS
450,000 United Communication
Industry................... 2,585,217
-----------------
TRANSPORTATION
5,000,000 Bangkok Expressway Public Co.
Ltd.*...................... 5,361,930
104,000 Regional Container Line Co.,
Ltd........................ 812,562
-----------------
6,174,492
-----------------
UTILITIES - ELECTRIC
800,000 Cogeneration Public Co.*..... 2,742,244
-----------------
TOTAL THAILAND............... 46,956,121
-----------------
TOTAL COMMON AND PREFERRED
STOCKS, WARRANTS, RIGHTS AND
BONDS (IDENTIFIED COST
$1,291,485,209).............. 1,317,764,516
-----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNTS IN
THOUSANDS
- -----------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (a) (2.1%)
COMMERCIAL PAPER
AUTOMOTIVE - FINANCE
$ 350 Ford Motor Credit Co. 5.53%
due 06/05/97............... 348,118
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNTS IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY
$ 28,000 Federal Home Loan Mortgage
Corp. 5.40% due 05/01/97... $ 28,000,000
-----------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST
$28,348,118)................. 28,348,118
-----------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,319,833,327)
(b)................................... 99.1% 1,346,112,634
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES........................... 0.9 12,593,199
------ ---------------
NET ASSETS............................ 100.0% $ 1,358,705,833
------ ---------------
------ ---------------
<FN>
- ---------------------
ADR American 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 one or more class of securities traded together as a unit;
stocks with attached warrants.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $176,070,448 and the
aggregate gross unrealized depreciation is $149,791,141, resulting in net
unrealized appreciation of $26,279,307.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1997
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
HKD 9,909,377 $ 1,279,207 05/01/97 $ (83)
IDR 1,372,406,185 $ 564,428 05/02/97 (581)
Y 18,902,591 $ 148,910 05/02/97 70
MYR 1,882,683 $ 749,416 05/02/97 (806)
MYR 834,023 $ 332,148 05/06/97 (198)
-------
Net unrealized depreciation................ $ (1,598)
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT
OF
NET
INDUSTRY VALUE ASSETS
- -----------------------------------------------------------------
<S> <C> <C>
Agriculture............................ $ 3,330,544 0.3%
Air Transport.......................... 164,462 0.0
Apparel................................ 707,638 0.1
Appliances & Household Durables........ 1,639,372 0.1
Auto................................... 4,075,751 0.3
Auto Parts............................. 413,543 0.0
Automotive............................. 25,946,218 1.9
Automotive - Finance................... 348,118 0.0
Banking................................ 189,038,288 13.9
Banks.................................. 10,530,643 0.8
Brewery................................ 1,131,195 0.1
Building & Construction................ 32,276,870 2.4
Building Materials..................... 24,035,860 1.8
Business Services...................... 1,938,582 0.2
Chemicals.............................. 8,807,638 0.7
Coal................................... 12,215,166 0.9
Commercial Services.................... 989,134 0.1
Communications -
Equipment/Manufacturers.............. 3,065,169 0.2
Computer Software & Services........... 4,276,536 0.3
Computers.............................. 3,825,070 0.3
Conglomerates.......................... 115,492,685 8.5
Construction Equipment................. 8,094,689 0.6
Construction - Plant & Equipment....... 3,355,851 0.3
Distribution........................... 1,113,596 0.1
Diversified Manufacturing.............. 5,618,450 0.4
Electronic & Electrical Equipment...... 43,485,006 3.2
Electronics............................ 9,912,758 0.7
Electronics - Semiconductors/
Components........................... 4,699,858 0.4
Electronics - Specialty................ 1,023,307 0.1
Engineering & Construction............. 22,104,969 1.6
Entertainment.......................... 1,662,457 0.1
Finance................................ 2,657,966 0.2
Financial Services..................... 27,577,833 2.0
Food Processing........................ 4,134,939 0.3
Food, Beverage, Tobacco & Household
Products............................. 18,472,070 1.4
Forest Products, Paper & Packing....... 11,720,599 0.9
Health & Personal Care................. 479,528 0.0
Hotels................................. 1,543,549 0.1
Hotels/Motels.......................... 7,863,672 0.6
Household Furnishings & Appliances..... 271,654 0.0
Industrials............................ 2,208,080 0.2
Insurance.............................. 7,053,910 0.5
Investment Companies................... 15,578,528 1.2
<CAPTION>
PERCENT
OF
NET
INDUSTRY VALUE ASSETS
- -----------------------------------------------------------------
<S> <C> <C>
Leisure................................ $ 12,519,934 0.9%
Life Insurance......................... 4,248,947 0.3
Machinery.............................. 15,771,270 1.2
Manufacturing.......................... 9,352,735 0.0
Medical Products & Supplies............ 3,793,742 0.3
Merchandising.......................... 537,276 0.1
Metals................................. 6,707,287 0.5
Metals & Mining........................ 18,824,070 1.4
Metals - Miscellaneous................. 5,117,682 0.4
Metals - Non-Ferrous................... 8,267,464 0.6
Multi-Industry......................... 9,374,665 0.7
Natural Gas............................ 870,827 0.1
Oil Related............................ 19,714,897 1.5
Paper & Forest Products................ 1,892,807 0.1
Paper Products......................... 1,595,659 0.1
Pharmaceuticals........................ 4,959,370 0.4
Plantation............................. 6,931,436 0.5
Property............................... 2,725,500 0.2
Publishing............................. 16,302,384 1.2
Real Estate............................ 238,828,678 17.6
Retail................................. 7,302,197 0.5
Retail - Department Stores............. 8,287,081 0.6
Retail - General Merchandise........... 3,080,284 0.2
Retail - Specialty..................... 698,110 0.1
Retail - Specialty Apparel............. 3,692,228 0.3
Retail Stores.......................... 4,865,007 0.4
Shipbuilding........................... 5,253,335 0.4
Steel.................................. 2,960,283 0.2
Steel & Iron........................... 16,686,382 1.2
Telecommunications..................... 79,751,845 5.9
Textiles............................... 5,275,722 0.4
Transportation......................... 51,538,409 3.8
U.S. Government Agency................. 28,000,000 2.1
Utilities.............................. 83,762,297 6.2
Utilities - Electric................... 3,822,669 0.3
Utilities - Telecommunications......... 3,950,010 0.3
Wholesale & International Trade........ 2,649,496 0.2
Wholesale Distributor.................. 1,318,898 0.1
-------------- --------
$1,346,112,634 99.1%
-------------- --------
-------------- --------
</TABLE>
<TABLE>
<CAPTION>
PERCENT
OF
NET
TYPE OF INVESTMENT VALUE ASSETS
- -----------------------------------------------------------------
<S> <C> <C>
Common Stocks.......................... $1,287,439,504 94.8%
Convertible Bonds...................... 18,827,010 1.4
Preferred Stock........................ 7,030,000 0.5
Rights................................. 2,672,314 0.2
Short-Term Investments................. 28,348,118 2.1
Warrants............................... 1,795,688 0.1
-------------- --------
$1,346,112,634 99.1%
-------------- --------
-------------- --------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $1,319,833,327).......................... $1,346,112,634
Cash (including $2,681,602 in foreign currency)............. 16,214,863
Receivable for:
Investments sold........................................ 4,419,289
Dividends............................................... 2,207,894
Capital stock sold...................................... 2,204,481
Interest................................................ 256,505
Foreign withholding taxes reclaimed..................... 6,893
Prepaid expenses and other assets........................... 103,881
--------------
TOTAL ASSETS........................................... 1,371,526,440
--------------
LIABILITIES:
Payable for:
Capital stock repurchased............................... 8,883,073
Plan of distribution fee................................ 1,127,689
Investment management fee............................... 1,112,401
Investments purchased................................... 988,049
Accrued expenses and other payables......................... 709,395
--------------
TOTAL LIABILITIES...................................... 12,820,607
--------------
NET ASSETS:
Paid-in-capital............................................. 1,389,488,245
Net unrealized appreciation................................. 26,248,234
Distributions in excess of net investment income............ (28,217,993)
Accumulated net realized loss............................... (28,812,653)
--------------
NET ASSETS............................................. $1,358,705,833
--------------
--------------
NET ASSET VALUE PER SHARE,
76,539,040 SHARES OUTSTANDING (200,000,000 SHARES
AUTHORIZED OF $.01 PAR VALUE)............................. $17.75
--------------
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $791,232 foreign withholding tax)......... $ 13,614,648
Interest.................................................... 791,342
------------
TOTAL INCOME........................................... 14,405,990
------------
EXPENSES
Plan of distribution fee.................................... 7,734,340
Investment management fee................................... 7,595,568
Custodian fees.............................................. 1,583,496
Transfer agent fees and expenses............................ 1,327,500
Professional fees........................................... 202,742
Shareholder reports and notices............................. 90,500
Registration fees........................................... 51,366
Directors' fees and expenses................................ 6,772
Other....................................................... 14,917
------------
TOTAL EXPENSES......................................... 18,607,201
------------
NET INVESTMENT LOSS.................................... (4,201,211)
------------
NET REALIZED AND UNREALIZED LOSS
Net realized loss on:
Investments............................................. (1,873,070)
Foreign exchange transactions........................... (880,174)
------------
NET LOSS............................................... (2,753,244)
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................. (51,902,741)
Translation of other assets and liabilities denominated
in foreign currencies................................. (1,459)
------------
NET DEPRECIATION....................................... (51,904,200)
------------
NET LOSS............................................... (54,657,444)
------------
NET DECREASE................................................ $(58,858,655)
------------
------------
</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 SIX ENDED
MONTHS ENDED OCTOBER 31,
APRIL 30, 1997 1996
- ----------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)................................ $ (4,201,211) $ 2,914,418
Net realized gain (loss).................................... (2,753,244) 2,758,084
Net change in unrealized appreciation/depreciation.......... (51,904,200) 28,304,565
---------------- -------------
NET INCREASE (DECREASE)................................ (58,858,655) 33,977,067
Dividends from net investment income........................ (25,258,275) (33,521,569)
Net increase (decrease) from capital stock transactions..... (181,645,117) 182,463,571
---------------- -------------
NET INCREASE (DECREASE)................................ (265,762,047) 182,919,069
NET ASSETS:
Beginning of period......................................... 1,624,467,880 1,441,548,811
---------------- -------------
END OF PERIOD
(INCLUDING DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME OF $28,217,993 AND UNDISTRIBUTED NET INVESTMENT
INCOME OF $1,241,493, RESPECTIVELY)..................... $ 1,358,705,833 $1,624,467,880
---------------- -------------
---------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (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. 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 pursuant to procedures
adopted 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 are 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 Dean Witter InterCapital Inc. (the "Investment Manager") or Morgan
Grenfell Investment Services Limited (the "Sub-Adviser") 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
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
by the identified cost method. 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. 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 foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses
included in realized and unrealized gain/loss are included in or are a reduction
of ordinary income for 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
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
exchange gains and losses are included in the Statement of Operations as
unrealized gain/loss on 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.
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.
Effective May 1, 1997, the Agreement was amended to reduce the annual rate to
0.90% to the portion of daily net assets in excess of $2 billion.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
Under a Sub-Advisory Agreement between the Sub-Adviser and the Investment
Manager, the Sub-Adviser 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-Adviser 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 others 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 utilize
fees paid pursuant to the Plan to compensate DWR and other selected
broker-dealers for their opportunity costs in advancing such amounts, which
compensation would be in the form of a carrying charge on any unreimbursed
distribution expenses.
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
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
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 $44,542,573 at April 30, 1997.
The Distributor has informed the Fund that for the six months ended April 30,
1997, it received approximately $2,384,000 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 six months ended April 30, 1997 aggregated
$285,012,328 and $514,353,105, respectively.
For the six months ended April 30, 1997, the Fund incurred $75,465 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 April 30, 1997 the Fund had
transfer agent fees and expenses payable of approximately $288,000.
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 six months ended April 30, 1997
included in Directors' fees and expenses in the Statement of Operations,
amounted to $2,454. At April 30, 1997, the Fund had an accrued pension liability
of $48,118 which is included in accrued expenses in the Statement of Assets and
Liabilities.
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (UNAUDITED) CONTINUED
5. CAPITAL STOCK
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 1997 OCTOBER 31, 1996
---------------------------- ----------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold..................................................... 13,676,892 $ 258,240,459 38,199,038 $ 744,616,070
Reinvestment of dividends................................ 1,228,090 23,456,516 1,685,192 31,243,453
----------- -------------- ----------- --------------
14,904,982 281,696,975 39,884,230 775,859,523
Repurchased.............................................. (24,377,017) (463,342,092) (30,677,011) (593,395,952)
----------- -------------- ----------- --------------
Net increase (decrease).................................. (9,472,035) $ (181,645,117) 9,207,219 $ 182,463,571
----------- -------------- ----------- --------------
----------- -------------- ----------- --------------
</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.
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.
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.
At April 30, 1997, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
At April 30, 1997, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's Custodian.
<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 SIX FOR THE YEAR ENDED OCTOBER 31
MONTHS ENDED --------------------------------------------------------
APRIL 30, 1997 1996 1995 1994 1993 1992*
- ----------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period....................... $ 18.89 $ 18.77 $ 21.60 $ 19.80 $ 12.69 $ 11.72
------ -------- -------- -------- -------- --------
Net investment income
(loss)....................... (0.08) 0.05 0.08 (0.10) (0.04) (0.01)
Net realized and unrealized
gain (loss).................. (0.76) 0.50 (1.94) 2.22 7.15 1.14
------ -------- -------- -------- -------- --------
Total from investment
operations................... (0.84) 0.55 (1.86) 2.12 7.11 1.13
------ -------- -------- -------- -------- --------
Less dividends and
distributions from:
Net investment income...... (0.30) (0.43) -- -- -- (0.01)
Net realized gain.......... -- -- (0.97) (0.32) -- (0.15)
------ -------- -------- -------- -------- --------
Total dividends and
distributions................ (0.30) (0.43) (0.97) (0.32) -- (0.16)
------ -------- -------- -------- -------- --------
Net asset value, end of
period....................... $ 17.75 $ 18.89 $ 18.77 $ 21.60 $ 19.80 $ 12.69
------ -------- -------- -------- -------- --------
------ -------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN+...... (4.56)%(1) 3.00% (8.65)% 10.69% 56.13% 9.86%
RATIOS TO AVERAGE NET ASSETS:
Expenses...................... 2.41%(2) 2.39% 2.45% 2.41% 2.38% 2.77%
Net investment income
(loss)....................... (0.54)%(2) 0.18% 0.35% (0.70)% (0.46)% (0.30)%
SUPPLEMENTAL DATA:
Net assets, end of period, in
millions..................... $1,359 $1,624 $1,442 $1,571 $694 $177
Portfolio turnover rate....... 19%(1) 49% 50% 35% 30% 73%
Average commission rate
paid......................... $0.0075 $0.0095 -- -- -- --
<FN>
- ---------------------
* 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DIRECTORS DEAN WITTER
PACIFIC
Michael Bozic GROWTH FUND
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Thomas F. Coloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048 [PICTURE]
SUB-ADVISER
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 directors,
fees, expenses and other pertinent information, please
see the prospectus of the Fund.
This report is not authorized for distribution to SEMIANNUAL REPORT
prospective investors in the Fund unless preceded or APRIL 30, 1997
accompanied by an effective prospectus.
