MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC, N-30D, 1999-07-01

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC
N-30D, 1999-07-01

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<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND TWO WORLD TRADE CENTER,
INC. NEW YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS APRIL 30, 1999

DEAR SHAREHOLDER:

Asian stock markets rose in the six months ended April 30, 1999, amid evidence
of economic stability and signs of corporate restructuring, particularly in
Japan and South Korea. A combination of domestic and global factors contributed
to the fourth-quarter recovery in Asian markets, including easing of domestic
monetary and fiscal policy, improved domestic liquidity from current-account
surpluses, U.S. and European interest-rate cuts, corporate restructuring and
strengthening of Asian currencies relative to the U.S. dollar. First-quarter
market rises were more muted, but a rally in the Japanese market improved
investor sentiment and encouraged international capital inflows into Asia.
Positive factors contributing to market strength included falling domestic
interest rates, government policy initiatives, exchange-rate stability and
global reallocations of capital into the region.

JAPAN

The Japanese equity market rallied during the first quarter, particularly in
March, as investors began reevaluating their allocation to Japanese equities.
Government initiatives to inject public funds into the private sector helped
improve sentiment toward the equity market. Full-scale restructuring efforts by
companies such as NEC, Sony, Mitsubishi Chemical and numerous other leading
private-sector companies were viewed positively, as shown by the record 1.8
trillion yen worth of equities purchased by foreign investors during March.

SOUTH KOREA

The South Korean equity market, which led the Asian markets over the last six
months, showed the strongest signs of recovery from Asia's economic crisis.
Korea aggressively implemented its IMF program in 1998, producing a sharp
contraction in domestic consumption, investment and inventory levels. The
contraction rapidly turned the current account from deficit to surplus,
stabilizing and then strengthening the local currency. Consensus growth
estimates for 1999 have moved up to

<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1999, CONTINUED

the 3 to 4 percent range. Among the factors expected to fuel growth are a
rebound in domestic consumption, government investment spending and inventory
restocking.

HONG KONG

Hong Kong slightly underperformed most Asian markets during the last six months
but did very well in March when it tracked the rally in Japan very closely. The
economy remains weak, with rising unemployment, falling consumption, consumer
price deflation, an arguably overvalued exchange rate and high real-interest
rates. While revenue growth may be difficult to achieve in 1999, positives for
the market include improved liquidity in the banking sector and a number of
government stimulus measures announced as part of the new budget.

SINGAPORE

Singapore lagged other Asian markets in the first quarter of 1999, partially due
to a 4.8 percent depreciation of the Singapore dollar relative to the U.S.
dollar. On the positive side, the government's drive to cut the cost of doing
business in Singapore and efforts by numerous companies to enhance returns on
capital should bode well for the market going forward.

TAIWAN

Taiwan was one of the weaker Asian markets over the past six months. Taiwan's
market is largely retail-driven and is strongly affected by investor sentiment,
so reports of corporate financial distress hurt the market during this period. A
financial support package introduced in February has alleviated some of the
financial stress within the system and has significantly improved retail
sentiment. A subsequent rally turned Taiwan from the worst- into the
best-performing Asian market in the first quarter of 1999, largely based on
rallies in financial, cyclical and semiconductor stocks.

AUSTRALIA

The Australian index returned 8.2 percent during the first quarter of 1999,
during which higher-priced growth stocks began to lag the index and companies in
the resource sector turned in superior performance. Certain other domestic
cyclicals and banks also performed well during the period.

PERFORMANCE

For the six-month period ended April 30, 1999, Morgan Stanley Dean Witter
Pacific Growth Fund's Class B shares posted a total return of 25.90 percent,
compared to 31.93 percent for the Lipper Pacific Region Funds Average and 19.78
percent for the Morgan Stanley Capital International World

2
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1999, CONTINUED

Index. For the same period, the Fund's Class A, C and D shares produced total
returns of 26.33 percent, 25.93 percent and 26.58 percent, respectively. The
performance of the Fund's four share classes varies because of differing
expenses.

The Fund's underperformance during the period is attributable to several
factors. Performance was negatively affected by the Fund's underweighting in
Japan, coupled with an underweighting in financials in that market, a larger
than average weighting in Australia and poor stock selection in Taiwan, where
the Fund underweighted financials and overweighted electronics.

PORTFOLIO STRATEGY

Factors that are expected to drive equity performance in 1999 include
improvements in domestic consumption in most Asian economies and the ability of
companies to enhance their own performance through corporate restructuring. The
region's markets have clearly rewarded companies that adopt Western-style
restructuring with a focus on enhancing shareholder value, and we expect to see
that trend continue for the balance of 1999. The Fund has invested in a number
of companies in Taiwan, Korea and Singapore that may benefit from the emerging
trend of Japanese companies following the American model of outsourcing
production.

LOOKING AHEAD

Morgan Stanley Dean Witter Investment Management Inc., the Fund's sub-advisor,
is focusing more of its research time and company visits on companies that have
the ability to implement sound restructuring programs or are sensitive to
recoveries in domestic consumption. The sub-advisor does not believe that all of
Asia's economic problems have been solved, but the trends have certainly
improved. In the near term there will likely be some disappointments in Japan
when restructuring erodes short-term profitability, but these expected
short-term setbacks should give way to a positive long-term picture for the
Japanese consumer technology industries.

On May 1, 1999, Mitchell M. Merin was named President of the Morgan Stanley Dean
Witter Funds. Mr. Merin is also the President and Chief Operating Officer of
Asset Management of Morgan Stanley Dean Witter & Co. and President, Chief
Executive Officer and Director of Morgan Stanley Dean Witter Advisors Inc., the
Fund's Investment Manager. He also serves as Chairman, Chief Executive Officer
and Director of the Fund's distributor and transfer agent.

3
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1999, CONTINUED

We appreciate your ongoing support of Morgan Stanley Dean Witter Pacific Growth
Fund and look forward to continuing to serve your investment needs.

Very truly yours,

[SIGNATURE] [SIGNATURE]
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT

4
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS, BONDS, RIGHTS AND WARRANTS (98.8%)
AUSTRALIA (15.6%)
AIRLINES
785,700 Quantas Airways Ltd............................................................. $ 2,156,597
------------
ALCOHOLIC BEVERAGES
1,426,800 Foster's Brewing Group Ltd...................................................... 4,159,766
------------
BEVERAGES - NON-ALCOHOLIC
452,450 Coca-Cola Amatil Ltd............................................................ 2,146,224
------------
DIVERSIFIED COMMERCIAL SERVICES
169,000 Brambles Industries, Ltd........................................................ 4,963,440
------------
ELECTRONIC COMPONENTS
187,400 Amp Ltd......................................................................... 2,187,653
------------
INTERNATIONAL BANKS
582,650 National Australia Bank Ltd..................................................... 11,337,430
1,205,300 Westpac Banking Corp., Ltd...................................................... 9,196,331
------------
20,533,761
------------
MEDIA CONGLOMERATES
660,350 News Corporation Ltd............................................................ 5,531,072
------------
OIL & GAS PRODUCTION
486,600 Santos Ltd...................................................................... 1,673,554
------------
OTHER METALS/MINERALS
566,900 Broken Hill Proprietary Co., Ltd................................................ 6,405,606
586,250 Rio Tinto Ltd................................................................... 9,868,129
------------
16,273,735
------------
OTHER TELECOMMUNICATIONS
1,663,850 Telstra Corp.................................................................... 9,023,857
------------
PRECIOUS METALS
1,830,800 Normandy Mining Ltd............................................................. 1,586,267
------------
REAL ESTATE
321,400 Lend Lease Corporation Ltd...................................................... 4,330,769
------------
TELECOMMUNICATIONS
967,500 Cable & Wireless Optus Ltd.*.................................................... 2,175,675
------------

TOTAL AUSTRALIA................................................................. 76,742,370
------------

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

CHINA (0.6%)
COAL MINING
5,750,000 Yanzhou Coal Mining Co. Ltd.*................................................... $ 1,305,638
------------
ELECTRIC UTILITIES
2,830,000 Huaneng Power International, Inc.*.............................................. 958,425
------------
MUTUAL FUNDS
100,000 Investment Co. of China* **..................................................... 550,000
------------

TOTAL CHINA..................................................................... 2,814,063
------------

HONG KONG (15.2%)
AIRLINES
1,309,000 Cathay Pacific Airways, Ltd..................................................... 2,102,574
------------
BANKING
329,800 Dao Heng Bank Group Ltd......................................................... 1,340,304
------------
BROADCASTING
1,257,600 Television Broadcasts Ltd.++.................................................... 5,110,876
------------
CELLULAR TELEPHONE
785,900 China Telecom Ltd.*............................................................. 1,794,663
604,000 SmarTone Telecommunications Holdings Ltd.++*.................................... 2,092,298
------------
3,886,961
------------
DIVERSIFIED FINANCIAL SERVICES
790,000 Credit Lyonnais (Warrants due 10/13/99)......................................... 504,515
------------
DIVERSIFIED MANUFACTURING
318,100 Johnson Electric Holdings Ltd................................................... 950,073
------------
FOOD CHAINS
801,300 Dairy Farm International Holdings Ltd........................................... 1,185,924
------------
MARINE TRANSPORTATION
1,229,900 Cosco Pacific Ltd............................................................... 833,051
------------
MULTI-LINE INSURANCE
1,140,800 AXA China Region Ltd............................................................ 868,368
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-SECTOR COMPANIES
1,442,900 Hutchison Whampoa, Ltd.++....................................................... $ 12,937,885
890,300 New World Development Co., Ltd.................................................. 2,205,362
524,800 Swire Pacific Ltd. (Class A)++.................................................. 2,945,272
------------
18,088,519
------------
NATURAL GAS
212,740 Hong Kong & China Gas Co., Ltd.................................................. 297,798
------------
PACKAGE GOODS/COSMETICS
2,195,400 Hengan International Group Co. Ltd.*............................................ 736,426
------------
REAL ESTATE
1,018,400 Cheung Kong (Holdings) Ltd...................................................... 9,262,960
1,186,400 Sun Hung Kai Properties Ltd..................................................... 10,331,828
------------
19,594,788
------------
TELECOMMUNICATIONS
3,396,300 Hong Kong Telecommunications Ltd................................................ 9,135,964
------------
UTILITIES
825,800 CLP Holdings Ltd................................................................ 4,421,455
------------
WHOLESALE DISTRIBUTORS
748,200 Citic Pacific Ltd............................................................... 2,027,119
1,548,200 Li & Fung Ltd.++................................................................ 3,795,097
------------
5,822,216
------------
TOTAL HONG KONG................................................................. 74,879,812
------------
INDIA (3.7%)
ALUMINUM
8,000 Hindalco Industries Ltd.*....................................................... 105,460
------------
COMPUTER HARDWARE
60,000 HCL Infosystems Ltd............................................................. 593,560
------------
COMPUTER SOFTWARE & SERVICES
22,500 NIIT Limited.................................................................... 875,642
72,000 Satyam Computer Service Ltd..................................................... 1,889,118
------------
2,764,760
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER SOFTWARE
96,900 Aptech Limited.................................................................. $ 1,876,505
72,500 Leading Edge Systems Ltd........................................................ 597,457
------------
2,473,962
------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
275,000 Larsen & Toubro Ltd............................................................. 1,257,583
39,600 Punjab Tractors Ltd............................................................. 1,214,286
------------
2,471,869
------------
E.D.P. SERVICES
18,700 Tata Infotech Limited........................................................... 618,330
------------
ELECTRICAL PRODUCTS
89,000 Bharat Heavy Electricals Ltd.................................................... 375,852
------------
ELECTRONIC DATA PROCESSING
153,500 Digital Equipment (India) Ltd................................................... 1,473,758
------------
GENERIC DRUGS
26,500 Dr. Reddy's Laboratories Ltd.................................................... 544,097
------------
MOTOR VEHICLES
57,000 Hero Honda Motors Ltd........................................................... 1,167,662
------------
MOVIES/ENTERTAINMENT
90,400 Zee Telefilms Ltd............................................................... 2,590,511
------------
OTHER PHARMACEUTICALS
17,700 Pfizer Ltd...................................................................... 424,845
------------
OTHER TELECOMMUNICATIONS
30,000 Videsh Sanchar Nigam Ltd........................................................ 487,587
------------
PACKAGE GOODS/COSMETICS
17,800 Hindustan Lever Ltd............................................................. 857,399
------------
SPECIALTY CHEMICALS
49,200 Hoechst Marion Roussel Ltd...................................................... 611,556
------------
TOBACCO
34,000 ITC Ltd.*....................................................................... 759,883
------------

TOTAL INDIA..................................................................... 18,321,091
------------

INDONESIA (0.3%)
BUILDING MATERIALS
415,100 PT Semen Gresik (Persero)....................................................... 654,472
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DEPARTMENT STORES
1,775,000 PT Ramayana Lestari Sentosa..................................................... $ 672,098
------------
MUTUAL FUNDS
2,500,000 Batavia Investment Fund Ltd.*................................................... --
------------
TOTAL INDONESIA................................................................. 1,326,570
------------
JAPAN (34.2%)
BUILDING PRODUCTS
328,000 Sanwa Shutter Corp.............................................................. 1,715,481
JPY 80,000 K Sanwa Shutter Corp. 0.90% due 03/31/06 (Conv.).................................. 649,372
------------
2,364,853
------------
CONSUMER ELECTRONICS/APPLIANCES
63,000 Aiwa Co., Ltd................................................................... 1,792,469
65,400 Rinnai Corp..................................................................... 1,376,410
70,400 Sony Corp....................................................................... 6,568,703
------------
9,737,582
------------
CONSUMER SPECIALTIES
303,000 Casio Computers Co., Ltd........................................................ 2,104,519
------------
DIVERSIFIED ELECTRONIC PRODUCTS
673,000 Hitachi Ltd..................................................................... 4,910,929
70,000 Kyocera Corp.................................................................... 4,153,138
276,000 Matsushita Electric Industrial Co., Ltd......................................... 5,242,845
496,000 NEC Corp........................................................................ 5,918,795
954,000 Toshiba Corp.................................................................... 6,386,611
------------
26,612,318
------------
E.D.P. PERIPHERALS
193,000 Mitsumi Electric Co., Ltd....................................................... 3,682,343
------------
ELECTRICAL PRODUCTS
600,000 Furukawa Electric Co............................................................ 2,620,920
------------
ELECTRONIC COMPONENTS
63,000 TDK Corp........................................................................ 4,760,586
------------
ELECTRONIC DATA PROCESSING
396,000 Fujitsu Ltd..................................................................... 6,776,736
------------
ELECTRONIC DISTRIBUTORS
92,000 Ryosan Co., Ltd................................................................. 1,639,833
------------
ENGINEERING & CONSTRUCTION
60,000 Kyudenko Co. Ltd................................................................ 364,519
------------
FINANCE COMPANIES
154,000 Hitachi Credit Corp............................................................. 3,247,531
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
FOOD CHAINS
54,100 Family Mart Co., Ltd............................................................ $ 2,557,866
------------
HOME BUILDING
296,000 Sekisui Chemical Co............................................................. 1,976,636
267,000 Sekisui House Ltd............................................................... 2,987,272
------------
4,963,908
------------
HOME FURNISHINGS
20,000 Sangetsu Co., Ltd............................................................... 367,364
------------
INDUSTRIAL MACHINERY/COMPONENTS
245,000 Amada Co., Ltd.................................................................. 1,537,657
263,000 Daifuku Co., Ltd................................................................ 1,771,674
235,000 Daikin Industries, Ltd.......................................................... 2,450,293
137,000 Fuji Machine Manufacturing Co., Ltd............................................. 4,883,849
307,000 Minebea Co., Ltd................................................................ 2,967,238
JPY 19,000 K Minebea Co., Ltd. 0.80% due 03/31/03 (Conv.).................................... 227,205
735,000 Mitsubishi Heavy Industries Ltd................................................. 3,216,778
80,000 Tsubakimoto Chain Co............................................................ 257,741
------------
17,312,435
------------
INDUSTRIAL SPECIALTIES
220,000 Fujitec Co., Ltd................................................................ 2,025,105
------------
MAJOR PHARMACEUTICALS
243,000 Sankyo Co., Ltd................................................................. 5,093,849
------------
MOTOR VEHICLES
1,109,000 Nissan Motor Co., Ltd........................................................... 4,250,393
200,000 Suzuki Motor Co., Ltd........................................................... 2,845,188
68,000 Toyota Motor Corp............................................................... 1,929,038
------------
9,024,619
------------
OFFICE EQUIPMENT/SUPPLIES
203,000 Canon, Inc...................................................................... 4,960,335
JPY 91,000 K Canon, Inc. 1.20% due 12/20/05 (Conv.).......................................... 1,494,075
JPY 45,000 K Canon, Inc. 1.30% due 12/19/08 (Conv.).......................................... 740,335
143,000 Lintec Corp..................................................................... 1,599,925
498,000 Ricoh Co., Ltd.................................................................. 4,792,469
------------
13,587,139
------------
OTHER PHARMACEUTICALS
109,000 Ono Pharmaceutical Co........................................................... 4,214,059
161,000 Yamanouchi Pharmaceutical Co., Ltd.............................................. 5,092,720
------------
9,306,779
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
494 Nippon Telegraph & Telephone Corp............................................... $ 5,374,059
------------
PHOTOGRAPHIC PRODUCTS
122,000 Fuji Photo Film Co.............................................................. 4,604,351
------------
POLLUTION CONTROL EQUIPMENT
100,000 Kurita Water Industries Ltd..................................................... 1,606,694
------------
PRINTING/FORMS
193,000 Dai Nippon Printing Co., Ltd.................................................... 3,055,699
15,000 Nissha Printing Co., Ltd........................................................ 104,184
------------
3,159,883
------------
REAL ESTATE
770 Chubu Sekiwa Real Estate, Ltd................................................... 5,090
270,000 Mitsubishi Estate Co., Ltd...................................................... 2,758,745
------------
2,763,835
------------
RECREATIONAL PRODUCTS/TOYS
66,100 Nintendo Co., Ltd............................................................... 6,156,427
240,000 Yamaha Corp..................................................................... 2,544,602
------------
8,701,029
------------
SEMICONDUCTORS
23,000 Rohm Co., Ltd................................................................... 2,771,548
------------
SPECIALTY CHEMICALS
674,000 Daicel Chemical Industries, Ltd................................................. 2,312,469
464,000 Kaneka Corp..................................................................... 3,746,946
784,000 Mitsubishi Chemical Corp........................................................ 2,420,887
190,000 NIFCO Inc....................................................................... 1,640,837
280,000 Shin-Etsu Polymer Co., Ltd...................................................... 1,733,891
------------
11,855,030
------------
TOTAL JAPAN..................................................................... 168,987,233
------------
MALAYSIA+ (3.5%)
ALCOHOLIC BEVERAGES
519,000 Carlsberg Brewery (Malaysia) Berhad............................................. 1,476,055
------------
BANKING
1,495,000 Commerce Asset Holdings Berhad.................................................. 2,040,195
977,000 Malayan Banking Berhad.......................................................... 2,263,234

TOTAL MALAYSIA.................................................................. 17,031,631
------------

NEW ZEALAND (0.7%)
AIRLINES
755,800 Air New Zealand Ltd. (Class B).................................................. 1,584,345
------------
TELECOMMUNICATIONS
378,600 Telecom Corporation of New Zealand Ltd.......................................... 1,968,228
------------

TOTAL NEW ZEALAND............................................................... 3,552,573
------------

PHILIPPINES (0.7%)
ALCOHOLIC BEVERAGES
552,600 San Miguel Corp. (Class B)...................................................... 1,173,279
------------
BANKING
211,300 Philippine National Bank*....................................................... 581,560
------------
OTHER TELECOMMUNICATIONS
56,070 Philippine Long Distance Telephone Co........................................... 1,807,761
------------

TOTAL PHILIPPINES............................................................... 3,562,600
------------

SINGAPORE (6.0%)
AEROSPACE
980,000 Singapore Technologies Engineering Ltd.......................................... 1,051,155
------------
DIVERSIFIED ELECTRONIC PRODUCTS
969,900 Natsteel Electronics Ltd........................................................ 3,258,151
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONIC COMPONENTS
679,100 Venture Manufacturing Ltd....................................................... $ 3,722,083
------------
INTERNATIONAL BANKS
4,687,000 Deutsche Bank London (Warrants due 04/09/02).................................... 2,845,126
444,200 Overseas Chinese Banking Corp., Ltd............................................. 4,162,411
262,600 United Overseas Bank Ltd........................................................ 2,027,381
------------
9,034,918
------------
MARINE TRANSPORTATION
315,600 Sembcorp Logistics Ltd.......................................................... 758,868
------------
NEWSPAPERS
211,099 Singapore Press Holdings Ltd.................................................... 3,110,252
------------
PAPER
179,000 Asia Pulp & Paper Co., Ltd. (ADR)*.............................................. 1,879,500
------------
REAL ESTATE
494,400 City Developments, Ltd.......................................................... 3,292,503
228,000 Parkway Holdings Ltd............................................................ 553,607
------------
3,846,110
------------
TEXTILES
$ 1,690 K Finlayson Global Corp. Ltd. 0.00% due 02/19/04.................................. 2,062,814
------------
TOBACCO
173,400 Rothmans Industries Ltd......................................................... 909,512
------------

TOTAL SINGAPORE................................................................. 29,633,363
------------

SOUTH KOREA (8.7%)
BANKING
88,040 Hana Bank....................................................................... 1,147,704
40,650 Kookmin Bank.................................................................... 553,852
24,000 Kookmin Bank (GDR).............................................................. 333,000
------------
2,034,556
------------
CELLULAR TELEPHONE
2,155 SK Telecom Co. Ltd.............................................................. 2,266,254
------------
DIVERSIFIED ELECTRONIC PRODUCTS
56,000 LG Electronics.................................................................. 927,838
1 LG Information & Communication Ltd.............................................. 47
99,823 Samsung Electronics Co.......................................................... 7,673,526
------------
8,601,411
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED FINANCIAL SERVICES
138,430 Sangyong Investment & Securities Co., Ltd....................................... $ 1,629,958
------------
ELECTRIC UTILITIES
291,500 Korea Electric Power Corp. (ADR)................................................ 4,809,750
------------
ELECTRONIC COMPONENTS
33,610 Daeduck Electronics Co.......................................................... 353,343
81,340 Samsung Electro-Mechanics Co.................................................... 1,915,492
------------
2,268,835
------------
INDUSTRIAL SPECIALTIES
29,800 Hankuk Glass Industry Co. Ltd................................................... 713,045
------------
INTERNATIONAL BANKS
76,880 Housing & Commercial Bank, Korea*............................................... 1,810,463
13,800 Housing & Commercial Bank (GDR)................................................. 337,755
73,730 Koram Bank...................................................................... 806,131
------------
2,954,349
------------
INVESTMENT BANKERS/BROKERS/SERVICES
66,840 Daewoo Securities Co............................................................ 1,649,919
63,420 L.G. Securities Co.............................................................. 1,600,168
------------
3,250,087
------------
MAJOR CHEMICALS
58,580 L.G. Chemical Ltd............................................................... 1,010,000
------------
OIL REFINING/MARKETING
59,700 SK Corp......................................................................... 1,255,257
------------
PAINTS/COATINGS
16,810 Korea Chemical.................................................................. 1,159,310
------------
PAPER
60,050 Hansol Paper Co................................................................. 1,010,093
------------
PROPERTY - CASUALTY INSURERS
3,940 Samsung Fire & Marine Insurance................................................. 1,822,540
------------
STEEL/IRON ORE
51,605 Pohang Iron & Steel Co., Ltd.................................................... 4,392,501
------------
TELECOMMUNICATIONS
74,630 Korea Telecom Corp.............................................................. 3,862,264
------------

TOTAL SOUTH KOREA............................................................... 43,040,210
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TAIWAN (8.2%)
BUILDING MATERIALS
289,000 Asia Cement Corp................................................................ $ 270,027
------------
COMPUTER HARDWARE
258,000 Asustek Computer Inc............................................................ 2,694,229
$ 2,100 K Compal Electronics 1.00% due 11/21/03 (Conv.)................................... 5,285,910
------------
7,980,139
------------
ELECTRONIC COMPONENTS
368,000 Compeq Manufacturing Co., Ltd.*................................................. 1,741,679
------------
ELECTRONIC DATA PROCESSING
686,000 Hon Hai Precision Industry*..................................................... 3,728,489
------------
ENGINEERING & CONSTRUCTION
595,000 CTCI Corp.*..................................................................... 752,153
------------
INTERNATIONAL BANKS
1,205,000 E. Sun Commercial Bank*......................................................... 750,595
4,485,000 Far Eastern International Bank*................................................. 1,972,031
512,000 First Commercial Bank........................................................... 852,031
495,000 Hua Nan Commercial Bank......................................................... 831,298
883,000 International Commercial Bank of China*......................................... 1,105,435
------------
5,511,390
------------
LIFE INSURANCE
272,820 Cathay Life Insurance Co., Ltd.................................................. 974,655
------------
MARINE TRANSPORTATION
391,000 Yang Ming Marine Transport*..................................................... 276,983
------------
MUTUAL FUNDS
730 Taipei Fund*.................................................................... 6,263,400
------------
SEMICONDUCTORS
736,848 Siliconware Precision Industries Co.*........................................... 1,316,202
1,824,125 Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)*............................. 6,154,681
743,000 United Microelectronics Corp., Ltd.*............................................ 1,157,038
------------
8,627,921
------------
SPECIALTY CHEMICALS
488,000 Nan Ya Plastic*................................................................. 774,840
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
STEEL/IRON ORE
2,441,800 China Steel Corp................................................................ $ 1,938,528
46,800 China Steel Corp. (GDS)......................................................... 740,610
------------
2,679,138
------------
TEXTILES
813,000 Far East Textile Ltd............................................................ 1,089,792
------------

TOTAL TAIWAN.................................................................... 40,670,606
------------

THAILAND (1.4%)
BUILDING MATERIALS
103,600 Siam City Cement Co. PCL*....................................................... 365,319
72,733 Siam City Cement Co. PCL (Rights)*.............................................. 139,005
------------
504,324
------------
BUILDING MATERIALS/DIY CHAINS
31,000 Siam Cement Co., Ltd.*.......................................................... 914,562
------------
ELECTRONIC COMPONENTS
149,500 Delta Electronics, Inc.......................................................... 696,191
7,475 Delta Electronics, Inc. (Rights)*............................................... 2,616
------------
698,807
------------
ELECTRONIC DATA PROCESSING
90,400 Shinawatra Computer PCL*........................................................ 326,073
------------
INTERNATIONAL BANKS
89,900 Siam Commercial Bank PCL*....................................................... 92,562
------------
MOVIES/ENTERTAINMENT
312,600 BEC World PCL................................................................... 1,674,493
------------
OTHER TELECOMMUNICATIONS
160,600 Advanced Info Service PCL....................................................... 1,703,268
------------
REAL ESTATE
3,287,500 Golden Land Property Development Company Ltd.*.................................. 1,123,856
------------

TOTAL THAILAND.................................................................. 7,037,945
------------

TOTAL COMMON STOCKS, BONDS, RIGHTS, AND WARRANTS
(IDENTIFIED COST $411,788,802).................................................. 487,600,067
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (0.1%)
COMMERCIAL PAPER
DIVERSIFIED FINANCIAL SERVICES
$ 350 General Electric Capital Corp. 4.81% due 06/07/99 (AMORTIZED COST $348,270)..... $ 348,270
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $412,137,072) (b)........................................................ 98.9 % 487,948,337
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................................ 1.1 5,560,831
------ -------------

NET ASSETS................................................................................ 100.0 % $ 493,509,168
------ -------------
------ -------------
</TABLE>

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

ADR American Depository Receipt.
GDR Global Depository Receipt.
K In thousands.
* Non-income producing security.
** Partially paid shares. Resale is restricted to qualified institutional
investors.
+ Securities deemed illiquid. The Malaysian Government subjects the proceeds
on sales of securities denominated in Malaysian ringgits to a graduated
exit tax.
++ Some or all of these securities are segregated in connection with open
forward foreign currency contracts.
(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 identified
cost. The aggregate gross unrealized appreciation is $88,516,081 and the
aggregate gross unrealized depreciation is $12,704,816, resulting in net
unrealized appreciation of $75,811,265.

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1999:

<TABLE>
<CAPTION>
UNREALIZED
IN APPRECIATION/
CONTRACTS TO RECEIVE EXCHANGE FOR DELIVERY DATE (DEPRECIATION)
--------------------------------------------------------------------
<S> <C> <C> <C>
$ 442,034 HKD 3,426,207 05/03/99 $--
IDR 591,705,233 $ 69,694 05/03/99 3,764
IDR 1,456,789,435 $ 177,441 05/04/99 3,414
$ 9,958,341 HKD 80,800,000 06/10/99 (465,370)
----------
Net unrealized depreciation............................................. $(458,192)
----------
----------
</TABLE>

CURRENCY ABBREVIATIONS:
- -------------------

<TABLE>
<S> <C>
HKD Hong Kong Dollar.
IDR Indonesian Rupiah.
JPY Japanese Yen.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Aerospace......................................................................... $ 1,051,155 0.2 %
Airlines.......................................................................... 5,843,516 1.2
Alcoholic Beverages............................................................... 6,809,100 1.4
Aluminum.......................................................................... 105,460 0.0
Banking........................................................................... 9,563,604 1.9
Beverages - Non-Alcoholic......................................................... 2,146,224 0.4
Broadcasting...................................................................... 5,110,876 1.0
Building Materials................................................................ 1,428,823 0.3
Building Materials/DIY Chains..................................................... 914,562 0.2
Building Products................................................................. 2,364,853 0.5
Cellular Telephone................................................................ 6,153,215 1.2
Coal Mining....................................................................... 1,305,638 0.3
Computer Hardware................................................................. 8,573,699 1.7
Computer Software & Services...................................................... 2,764,760 0.6
Computer Software................................................................. 2,473,962 0.5
Construction/Agricultural Equipment/Trucks........................................ 2,471,869 0.5
Consumer Electronics/Appliances................................................... 9,737,582 2.0
Consumer Specialties.............................................................. 2,104,519 0.4
Department Stores................................................................. 672,098 0.1
Diversified Commercial Services................................................... 4,963,440 1.0
Diversified Electronic Products................................................... 38,471,880 7.8
Diversified Financial Services.................................................... 2,482,743 0.5
Diversified Manufacturing......................................................... 950,073 0.2
E.D.P. Peripherals................................................................ 3,682,343 0.7
E.D.P. Services................................................................... 618,330 0.1
Electric Utilities................................................................ 5,768,175 1.2
Electrical Products............................................................... 2,996,772 0.6
Electronic Components............................................................. 15,379,643 3.1
Electronic Data Processing........................................................ 12,305,056 2.5
Electronic Distributors........................................................... 1,639,833 0.3
Engineering & Construction........................................................ 1,116,672 0.2
Finance Companies................................................................. 3,247,531 0.7
Food Chains....................................................................... 3,743,790 0.8
Generic Drugs..................................................................... 544,097 0.1
Home Building..................................................................... 4,963,908 1.0
Home Furnishings.................................................................. 367,364 0.1
Industrial Machinery/Components................................................... 17,312,435 3.5
Industrial Specialties............................................................ 2,738,150 0.6
International Banks............................................................... 37,789,225 7.7
Investment Bankers/Brokers/Services............................................... 3,250,087 0.7
Life Insurance.................................................................... 974,655 0.2
Major Chemicals................................................................... 1,010,000 0.2

<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Major Pharmaceuticals............................................................. $ 5,093,849 1.0 %
Marine Transportation............................................................. 2,766,035 0.6
Media Conglomerates............................................................... 5,531,072 1.1
Motor Vehicles.................................................................... 10,192,281 2.1
Movies/Entertainment.............................................................. 4,265,004 0.9
Multi-Line Insurance.............................................................. 868,368 0.2
Multi-Sector Companies............................................................ 18,088,519 3.7
Mutual Funds...................................................................... 6,813,400 1.4
Natural Gas....................................................................... 297,798 0.1
Newspapers........................................................................ 3,110,252 0.6
Office Equipment/Supplies......................................................... 13,587,139 2.8
Oil & Gas Production.............................................................. 1,673,554 0.3
Oil Refining/Marketing............................................................ 1,255,257 0.3
Other Metals/Minerals............................................................. 16,273,735 3.3
Other Pharmaceuticals............................................................. 9,731,624 2.0
Other Telecommunications.......................................................... 18,396,532 3.7
Package Goods/Cosmetics........................................................... 1,593,825 0.3
Paints/Coatings................................................................... 1,159,310 0.2
Paper............................................................................. 2,889,594 0.6
Photographic Products............................................................. 4,604,351 0.9
Pollution Control Equipment....................................................... 1,606,694 0.3
Precious Metals................................................................... 1,586,267 0.3
Printing/Forms.................................................................... 3,159,883 0.6
Property - Casualty Insurers...................................................... 1,822,540 0.4
Real Estate....................................................................... 31,659,358 6.4
Recreational Products/Toys........................................................ 8,701,029 1.8
Semiconductors.................................................................... 11,399,469 2.3
Specialty Chemicals............................................................... 13,241,426 2.7
Steel/Iron Ore.................................................................... 7,071,639 1.4
Telecommunications................................................................ 23,212,223 4.7
Textiles.......................................................................... 3,152,606 0.6
Tobacco........................................................................... 4,988,317 1.0
Utilities......................................................................... 4,421,455 0.9
Wholesale Distributors............................................................ 5,822,215 1.2
------------ ---
$487,948,337 98.9 %
------------ ---
------------ ---
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Common Stocks..................................................................... $473,649,094 96.0 %
Convertible Bonds................................................................. 10,459,711 2.1
Rights............................................................................ 141,621 0.0
Short-Term Investment............................................................. 348,270 0.1
Warrants.......................................................................... 3,349,641 0.7
------------ ---
$487,948,337 98.9 %
------------ ---
------------ ---
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $412,137,072).............................................................. $487,948,337
Cash (including $5,391,282 in foreign currency)............................................... 8,830,424
Receivable for:
Investments sold.......................................................................... 5,718,897
Capital stock sold........................................................................ 3,801,897
Dividends................................................................................. 909,451
Interest.................................................................................. 272,247
Prepaid expenses and other assets............................................................. 93,509
------------
TOTAL ASSETS............................................................................. 507,574,762
------------
LIABILITIES:
Unrealized depreciation on open forward foreign currency contracts............................ 458,192
Payable for:
Investments purchased..................................................................... 9,381,528
Capital stock repurchased................................................................. 3,121,056
Plan of distribution fee.................................................................. 389,793
Investment management fee................................................................. 374,822
Accrued expenses and other payables........................................................... 340,203
------------
TOTAL LIABILITIES........................................................................ 14,065,594
------------
NET ASSETS............................................................................... $493,509,168
------------
------------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................... $881,604,031
Net unrealized appreciation................................................................... 75,371,475
Accumulated net investment loss............................................................... (4,585,959)
Accumulated net realized loss................................................................. (458,880,379)
------------
NET ASSETS............................................................................... $493,509,168
------------
------------
CLASS A SHARES:
Net Assets.................................................................................... $3,503,569
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE)................................... 284,028
NET ASSET VALUE PER SHARE................................................................ $12.34
------------
------------
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)........................................ $13.02
------------
------------
CLASS B SHARES:
Net Assets.................................................................................... $484,309,604
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE)................................... 39,535,121
NET ASSET VALUE PER SHARE................................................................ $12.25
------------
------------
CLASS C SHARES:
Net Assets.................................................................................... $3,827,816
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE)................................... 312,549
NET ASSET VALUE PER SHARE................................................................ $12.25
------------
------------
CLASS D SHARES:
Net Assets.................................................................................... $1,868,179
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE)................................... 150,946
NET ASSET VALUE PER SHARE................................................................ $12.38
------------
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)

<TABLE>
<S> <C>
NET INVESTMENT LOSS:

INCOME
Dividends (net of $337,455 foreign withholding tax)........................................... $ 3,294,026
Interest (net of $1,065 foreign withholding tax).............................................. 676,788
------------

TOTAL INCOME............................................................................. 3,970,814
------------

EXPENSES
Plan of distribution fee (Class A shares)..................................................... 3,819
Plan of distribution fee (Class B shares)..................................................... 2,130,612
Plan of distribution fee (Class C shares)..................................................... 12,672
Investment management fee..................................................................... 2,064,141
Transfer agent fees and expenses.............................................................. 861,754
Custodian fees................................................................................ 413,467
Professional fees............................................................................. 70,579
Registration fees............................................................................. 67,462
Shareholder reports and notices............................................................... 44,235
Directors' fees and expenses.................................................................. 9,026
Other......................................................................................... 15,518
------------

TOTAL EXPENSES........................................................................... 5,693,285
------------

NET INVESTMENT LOSS...................................................................... (1,722,471)
------------

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments............................................................................... (52,136,858)
Foreign exchange transactions............................................................. 2,327,763
------------

NET LOSS................................................................................. (49,809,095)
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... 155,776,122
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies....................................................... 1,133,376
------------

NET APPRECIATION......................................................................... 156,909,498
------------

NET GAIN................................................................................. 107,100,403
------------

NET INCREASE.................................................................................. $105,377,932
------------
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 1999 OCTOBER 31, 1998
- ------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)................................ $ (1,722,471) $ 725,159
Net realized loss........................................... (49,809,095) (275,477,997)
Net change in unrealized appreciation....................... 156,909,498 121,134,260
-------------- ------------------

NET INCREASE (DECREASE)................................ 105,377,932 (153,618,578)
-------------- ------------------

DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A shares.............................................. -- (18,402)
Class B shares.............................................. -- (10,272,862)
Class C shares.............................................. -- (13,025)
Class D shares.............................................. -- (17,046)
-------------- ------------------

TOTAL DIVIDENDS........................................ -- (10,321,335)
-------------- ------------------
Net decrease from capital stock transactions................ (27,106,493) (166,513,928)
-------------- ------------------

NET INCREASE (DECREASE)................................ 78,271,439 (330,453,841)

NET ASSETS:
Beginning of period......................................... 415,237,729 745,691,570
-------------- ------------------

END OF PERIOD
(INCLUDING A NET INVESTMENT LOSS OF $4,585,959 AND
DIVIDENDS IN EXCESS OF NET INVESTMENT INCOME OF
$2,863,488, RESPECTIVELY)............................... $493,509,168 $ 415,237,729
-------------- ------------------
-------------- ------------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED)

1. ORGANIZATION AND ACCOUNTING POLICIES

Morgan Stanley 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. On July 28, 1997, the Fund converted to a multiple class share
structure.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

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 Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager"), or Morgan Stanley Dean Witter Investment Management Inc. (the
"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

16
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

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 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. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. 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.

17
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

E. 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.

F. 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 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.

G. 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.

H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and 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.

18
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

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: 0.95% to the portion of daily net assets not exceeding $1
billion; 0.90% to the portion of daily net assets exceeding $1 billion but not
exceeding $2 billion; and 0.85% 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.

Under a Sub-Advisory Agreement between 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 Morgan Stanley 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. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) the average daily net
assets of Class B; and (iii) Class C -- up to 1.0% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for (1)
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes,

19
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

including the payment of commissions for sales of these Classes and incentive
compensation to, and expenses of, the Morgan Stanley Dean Witter Financial
Advisors and others who engage in or support distribution of the shares or who
service shareholder accounts, including overhead and telephone expenses; (2)
printing and distribution of prospectuses and reports used in connection with
the offering of these shares to other than current shareholders; and (3)
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may utilize fees paid pursuant to the
Plan, in the case of Class B shares, to compensate Dean Witter Reynolds Inc.
("DWR"), an affiliate of the Investment Manager and Distributor, 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
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. 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
Trustees 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 $39,316,033 at April 30, 1999.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the six months ended April 30, 1999, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.21% and
1.0%, respectively.

The Distributor has informed the Fund that for the six months ended April 30,
1999, it received contingent deferred sales charges from certain redemptions of
the Fund's Class A shares, Class B shares and Class C shares of $549, $482,342,
and $1,099, respectively and received $10,517 in front-end sales charges from
sales of the Fund's Class A shares. The respective shareholders pay such charges
which are not an expense of the Fund.

20
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

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, 1999 aggregated
$410,814,099 and $412,716,676, respectively.

For the six months ended April 30, 1999, the Fund incurred brokerage commissions
of $89,463 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager and Distributor, for portfolio transactions executed on behalf of the
Fund.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1999, the Fund had
transfer agent fees and expenses payable of approximately $21,000.

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, 1999
included in Directors' fees and expenses in the Statement of Operations,
amounted to $3,002. At April 30, 1999, the Fund had an accrued pension liability
of $43,400 which is included in accrued expenses in the Statement of Assets and
Liabilities.

5. FEDERAL INCOME TAX STATUS

At October 31, 1998, the Fund had an approximate net capital loss carryover of
$385,013,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through October 31 of the following
years:

<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
- --------------------------------------------------
2003 2004 2005 2006
- --------- ----------- ----------- -------------
<S> <C> <C> <C>
$ 3,193 $ 15,875 $ 97,595 $ 268,352
- --------- ----------- ----------- -------------
- --------- ----------- ----------- -------------
</TABLE>

As of October 31, 1998, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies and
capital loss deferrals on wash sales.

21
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

6. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 1999 FOR THE YEAR
---------------------------- ENDED
OCTOBER 31, 1998
(UNAUDITED) --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 3,761,434 $ 41,471,126 418,160 $ 4,158,089
Reinvestment of dividends........................................ -- -- 1,152 13,083
Redeemed......................................................... (3,795,161) (42,306,160) (149,951) (1,337,917)
----------- -------------- ----------- ------------
Net increase (decrease) - Class A................................ (33,727) (835,034) 269,361 2,833,255
----------- -------------- ----------- ------------

CLASS B SHARES
Sold............................................................. 22,029,652 238,387,471 37,286,227 384,246,449
Reinvestment of dividends........................................ -- -- 840,396 9,572,097
Redeemed......................................................... (24,529,518) (265,622,899) (54,083,073) (565,173,912)
----------- -------------- ----------- ------------
Net decrease - Class B........................................... (2,499,866) (27,235,428) (15,956,450) (171,355,366)
----------- -------------- ----------- ------------

CLASS C SHARES
Sold............................................................. 1,493,458 15,930,996 1,140,153 10,725,985
Reinvestment of dividends........................................ -- -- 1,046 11,869
Redeemed......................................................... (1,343,578) (14,469,190) (1,042,383) (10,154,217)
----------- -------------- ----------- ------------
Net increase - Class C........................................... 149,880 1,461,806 98,816 583,637
----------- -------------- ----------- ------------

CLASS D SHARES
Sold............................................................. 3,105,270 33,314,072 612,447 5,857,456
Reinvestment of dividends........................................ -- -- 222 2,523
Redeemed......................................................... (3,114,375) (33,811,909) (461,755) (4,435,433)
----------- -------------- ----------- ------------
Net increase (decrease) - Class D................................ (9,105) (497,837) 150,914 1,424,546
----------- -------------- ----------- ------------
Net decrease in Fund............................................. (2,392,818) $ (27,106,493) (15,437,359) $(166,513,928)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>

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.

22
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) CONTINUED

At April 30, 1999, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.

At April 30, 1999, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.

At April 30, 1999, investments in securities of issuers in Japan represented
34.2% of the Fund's net assets. These investments, as well as other non-U.S.
investments, which involve risks and considerations not present with respect to
U.S. securities, may be affected by economic or political developments in this
region.

23
<PAGE>
MORGAN STANLEY 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
MONTHS ENDED
APRIL 30, FOR THE YEAR ENDED OCTOBER 31
1999++ --------------------------------------------------------------
(UNAUDITED) 1998++ 1997*++ 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES

SELECTED PER SHARE DATA:

Net asset value, beginning of period......... $ 9.73 $12.83 $18.89 $18.77 $21.60 $19.80
------ ---------- ---------- ---------- ---------- ----------

Income (loss) from investment operations:
Net investment income (loss).............. (0.04) 0.01 0.01 0.05 0.08 (0.10)
Net realized and unrealized gain (loss)... 2.56 (2.92) (5.77) 0.50 (1.94) 2.22
------ ---------- ---------- ---------- ---------- ----------

Total income (loss) from investment
operations.................................. 2.52 (2.91) (5.76) 0.55 (1.86) 2.12
------ ---------- ---------- ---------- ---------- ----------

Less dividends and distributions from:
Net investment income..................... -- (0.19) (0.30) (0.43) -- --
Net realized gain......................... -- -- -- -- (0.97) (0.32)
------ ---------- ---------- ---------- ---------- ----------

Total dividends and distributions............ -- (0.19) (0.30) (0.43) (0.97) (0.32)
------ ---------- ---------- ---------- ---------- ----------

Net asset value, end of period............... $12.25 $ 9.73 $12.83 $18.89 $18.77 $21.60
------ ---------- ---------- ---------- ---------- ----------
------ ---------- ---------- ---------- ---------- ----------

TOTAL RETURN+................................ 25.90%(1) (22.87)% (31.01)% 3.00% (8.65)% 10.69%

RATIOS TO AVERAGE NET ASSETS:
Expenses..................................... 2.63%(2)(3) 2.65%(3) 2.44% 2.39% 2.45% 2.41%

Net investment income (loss)................. (0.80)%(2)(3) 0.14%(3) 0.03% 0.18% 0.35% (0.70)%

SUPPLEMENTAL DATA:
Net assets, end of period, in millions....... $484 $409 $744 $1,624 $1,442 $1,571

Portfolio turnover rate...................... 98%(1) % 58 % 42 % 49 % 50 % 35
</TABLE>

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

* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE YEAR JULY 28, 1997*
APRIL 30, 1999 ENDED THROUGH
(UNAUDITED) OCTOBER 31, 1998 OCTOBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $ 9.76 $12.86 $19.39
------ ------ ------
Income (loss) from investment operations:
Net investment income.......................... 0.01 0.10 --
Net realized and unrealized gain (loss)........ 2.57 (2.94) (6.53)
------ ------ ------
Total income (loss) from investment operations.... 2.58 (2.84) (6.53)
------ ------ ------
Less dividends from net investment income......... -- (0.26) --
------ ------ ------
Net asset value, end of period.................... $12.34 $ 9.76 $12.86
------ ------ ------
------ ------ ------
TOTAL RETURN+..................................... 26.33%(1) (22.35)% (33.68)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 1.84%(2)(3) 1.90%(3) 1.92%(2)
Net investment income (loss)...................... (0.01)%(2)(3) 0.89%(3) (0.03)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $3,504 $3,102 $622
Portfolio turnover rate........................... 98%(1) 58% 42%
</TABLE>

<TABLE>
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $ 9.72 $12.83 $19.39
------ ------ ------
Income (loss) from investment operations:
Net investment income (loss)................... (0.04) 0.01 (0.04)
Net realized and unrealized gain (loss)........ 2.57 (2.89) (6.52)
------ ------ ------
Total income (loss) from investment operations.... 2.53 (2.88) (6.56)
------ ------ ------
Less dividends from net investment income......... -- (0.23) --
------ ------ ------
Net asset value, end of period.................... $12.25 $ 9.72 $12.83
------ ------ ------
------ ------ ------
TOTAL RETURN+..................................... 25.93%(1) (22.68)% (33.83)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 2.63%(2)(3) 2.65%(3) 2.62%(2)
Net investment income (loss)...................... (0.80)%(2)(3) 0.14%(3) (0.77)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $3,828 $1,581 $819
Portfolio turnover rate........................... 98%(1) 58% 42%
</TABLE>

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

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<S> <C> <C> <C>
CLASS D SHARES++

SELECTED PER SHARE DATA:

Net asset value, beginning of period.............. $ 9.78 $12.86 $19.39
------ ------ ------

Income (loss) from investment operations:
Net investment income.......................... 0.03 0.07 0.02
Net realized and unrealized gain (loss)........ 2.57 (2.88) (6.55)
------ ------ ------

Total income (loss) from investment operations.... 2.60 (2.81) (6.53)
------ ------ ------

Less dividends from net investment income......... -- (0.27) --
------ ------ ------

Net asset value, end of period.................... $12.38 $ 9.78 $12.86
------ ------ ------
------ ------ ------

TOTAL RETURN+..................................... 26.58%(1) (22.14)% (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 1.63%(2)(3) 1.65%(3) 1.62%(2)
Net investment income............................. 0.20%(2)(3) 1.14%(3) 0.42%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $1,868 $1,565 $118

Portfolio turnover rate........................... 98%(1) 58% 42%
</TABLE>

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

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>

DIRECTORS

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Mitchell M. Merin
President

Barry Fink
Vice President, Secretary and General Counsel

Thomas F. Caloia
Treasurer

TRANSFER AGENT

Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER

Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISOR

Morgan Stanley Dean Witter
Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020

The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.

This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND

[GRAPHIC]

SEMIANNUAL REPORT
APRIL 30, 1999