<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 1998
Two World Trade Center, New York, New York 10048
Dear Shareholder:
We are pleased to present the semiannual report of Morgan Stanley Dean Witter
Multi-State Municipal Series Trust for the six-month period ended
May 31, 1998.
The deflationary impact of the Asian financial crisis has begun to temper
U.S. economic growth. Although employment conditions in the United States
strengthened and unemployment declined to its lowest level since 1970,
inflation remained subdued. This was primarily the result of improved
productivity, lower oil costs and cheaper imports.
Foreign currency turmoil strengthened the value of the U.S. dollar and
spurred demand for U.S. Treasury securities. Municipal bonds followed the
trend of Treasuries with yields declining to a range not seen in over
20 years. The bond market rally was also aided by prospects of the first
federal budget surplus in more than two decades.
Municipal Market Conditions
Long-term insured municipal yields stood at 5.20 percent at the end of May
1998. Since the beginning of the year municipal yields have ranged
MMD 30 YEAR AAA INSURED AND TREASURY YIELD
Date AAA Ins Tsy % Relationship
12/31/93 5.40% 6.34% 85.17%
01/31/94 5.40 6.24 86.54
02/28/94 5.80 6.66 87.09
03/31/94 6.40 7.09 90.27
04/29/94 6.35 7.32 86.75
05/31/94 6.25 7.43 84.12
06/30/94 6.50 7.61 85.41
07/29/94 6.25 7.39 84.57
08/31/94 6.30 7.45 84.56
09/30/94 6.55 7.81 83.87
10/31/94 6.75 7.96 84.80
11/30/94 7.00 8.00 87.50
12/30/94 6.75 7.88 85.66
01/31/95 6.40 7.70 83.12
02/28/95 6.15 7.44 82.66
03/31/95 6.15 7.43 82.77
04/28/95 6.20 7.34 84.47
05/31/95 5.80 6.66 87.09
06/30/95 6.10 6.62 92.15
07/31/95 6.10 6.86 88.92
08/31/95 6.00 6.66 90.09
09/29/95 5.95 6.48 91.82
10/31/95 5.75 6.33 90.84
11/30/95 5.50 6.14 89.58
12/29/95 5.35 5.94 90.07
01/31/96 5.40 6.03 89.55
02/29/96 5.60 6.46 86.69
03/29/96 5.85 6.66 87.84
04/30/96 5.95 6.89 86.36
05/31/96 6.05 6.99 86.55
06/28/96 5.90 6.89 85.63
07/31/96 5.85 6.97 83.93
08/30/96 5.90 7.11 82.98
09/30/96 5.70 6.93 82.25
10/31/96 5.65 6.64 85.09
11/29/96 5.50 6.35 86.61
12/31/96 5.60 6.63 84.46
01/31/97 5.70 6.79 83.95
02/28/97 5.65 6.80 83.09
03/31/97 5.90 7.10 83.10
04/30/97 5.75 6.94 82.85
05/30/97 5.65 6.91 81.77
06/30/97 5.60 6.78 82.60
07/30/97 5.30 6.30 84.13
08/31/97 5.50 6.61 83.21
09/30/97 5.40 6.40 84.38
10/31/97 5.35 6.15 86.99
11/30/97 5.30 6.05 87.60
12/31/97 5.15 5.92 86.99
01/31/98 5.15 5.80 88.79
02/28/98 5.20 5.92 87.84
03/31/98 5.25 5.93 88.53
04/30/98 5.35 5.95 89.92
05/29/98 5.20 5.80 89.66
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS, May 31, 1998, continued
from a low of 5.15 percent in January to 5.35 percent in April. Over the past
12-months insured yields have declined from a high of 5.65 percent.
The overall decline in interest rates led to an increase in new issue
municipal volume. In contrast, U.S. Treasury borrowing needs have declined
with the reduction in the budget deficit. Under these conditions the
municipal rally lagged the rally in Treasuries. The ratio of municipal yields
to Treasury yields improved during this period, from 82 percent of Treasuries
in May 1997 to almost 90 percent a year later. A rising ratio means that
municipals have underperformed Treasuries and have become more attractive on
a relative basis.
Total municipal volume increased 20 percent and totaled $220 billion last
year. Half of the underwritings were enhanced with bond insurance. Refundings
represented one-quarter of total new issues. For the year-to-date,
underwriting is up 60 percent with refunding issues comprising nearly
one-third of total issuance.
Portfolio Structure
During the past six months, as market conditions improved, the 10
single-state portfolios that comprise Morgan Stanley Dean Witter Multi-State
Municipal Series Trust drew down cash and sold refunded bonds to purchase new
issues. The average refunded bond position was reduced from 9 to 5 percent of
net assets. Portfolio duration, which measures the sensitivity to interest
rate changes, was extended from 5.8 to 6.5 years. Weighted average bond
maturities ranged from 16 to 20 years and average call protection exceeded 7
years. Average credit quality remained double "A".
For your convenience, we have summarized details regarding the various State
series on the following pages. Here you will find information on credit
quality, duration, maturity, call protection, distributions, and performance.
Looking Ahead
The economic fundamentals remain in place for another year of solid economic
growth in the United States. Events in Asia have strengthened the U.S. dollar
and contributed to lower interest rates. Furthermore, the Asian crisis seems
likely to continue to moderate inflationary pressures and provide a favorable
outlook for municipal bonds. However, if labor cost pressures accelerate it
is possible that the Federal Reserve Board may tighten monetary policy.
2
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS, May 31, 1998, continued
We appreciate your ongoing support of Morgan Stanley Dean Witter Multi-State
Municipal Series Trust and look forward to continuing to serve your
investment needs.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
Chairman of the Board
3
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
PORTFOLIO SUMMARY May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
SERIES SERIES SERIES SERIES
- ------------------------------------------------- ------------ -------------- ------------ -----------------
<S> <C> <C> <C> <C>
Credit Ratings (1):
Aaa or AAA........................................ 47% 53% 73% 59%
Aa or AA.......................................... 34 19 15 18
A or A ........................................... 17 22 6 7
Baa or BBB ....................................... 2 6 6 16
Non-Rated (2) .................................... -- -- -- --
Long-Term Portfolio Distribution by Call Date
1998............................................ -- -- -- --
1999............................................ -- 1% 3% --
2000............................................ 5% -- 1 4%
2001............................................ 12 15 14 7
2002............................................ 31 21 27 18
2003............................................ 7 14 5 20
2004............................................ 11 -- -- 4
2005............................................ 5 -- 7 8
2006............................................ -- 8 11 6
2007............................................ -- 6 5 4
2008............................................ 15 16 10 14
2009+........................................... 14 19 17 15
Average Weighted:
Maturity ....................................... 18 Years 20 Years 19 Years 18 Years
Call Protection ................................ 7 Years 9 Years 7 Years 7 Years
Modified Duration............................... 6 Years 8 Years 7 Years 7 Years
Per Share Net Asset Value:
November 30, 1997 .............................. $10.64 $10.96 $10.97 $11.10
May 31, 1998 ................................... $10.70 $11.07 $11.13 $11.24
Dividends (3) .................................... $ 0.26 $ 0.27 $ 0.27 $ 0.27
Total Return (4):
6 months ended 05/31/98 ........................ 3.06% 3.64% 3.93 % 3.72%
12 months ended 05/31/98 ....................... 7.65% 9.13% 8.89 % 9.03%
</TABLE>
- ------------
(1) Represents Moody's or Standard & Poor's ratings of the credit quality
of the long-term bonds owned by each Series.
(2) Unrated at time of purchase; deemed by Investment Manager to be
comparable to investment grade securities.
(3) Includes all income dividends and capital gains distributions, if
any, paid by each Series for the six months ended
May 31, 1998.
(4) Total return figures represent the change in each Series' total value
for each period measured, taking into account the change in NAV plus
compounded, reinvested dividends.
4
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK
SERIES SERIES SERIES SERIES
- --------------- ------------- -------------- ------------
<S> <C> <C> <C>
66% 29% 61% 41%
28 40 17 14
3 22 7 37
3 4 12 8
-- 5 3 --
-- -- -- --
-- -- 5% --
2% 6% -- --
17 10 13 1%
32 27 26 20
9 34 7 9
-- 5 -- 4
19 -- 18 18
4 5 7 22
-- -- 2 7
14 8 19 8
3 5 3 11
18 Years 16 Years 19 Years 20 Years
6 Years 5 Years 6 Years 8 Years
6 Years 5 Years 6 Years 7 Years
$10.94 $10.70 $10.88 $11.11
$11.05 $10.75 $11.03 $11.27
$ 0.26 $ 0.24 $ 0.27 $ 0.26
3.47% 2.79% 3.78% 3.85%
8.47% 7.06% 8.91% 9.67%
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA
SERIES SERIES
- ------------ ----------------
<S> <C>
62% 67%
19 16
13 12
6 4
-- 1
3% --
-- --
-- --
13 15%
32 28
2 14
3 --
15 4
3 4
6 7
11 21
12 7
19 Years 19 Years
7 Years 7 Years
6 Years 7 Years
$10.94 $10.97
$11.03 $11.04
$ 0.26 $ 0.26
3.19% 3.10%
8.27% 8.34%
</TABLE>
5
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ARIZONA TAX-EXEMPT MUNICIPAL BONDS (93.8%)
General Obligation (15.6%)
$ 200 Chandler, Sierra Vista Refg Ser 1991 (FGIC) .................... 7.00 % 07/01/12 $ 217,086
1,000 Paradise Valley Unified School District #69, Ser B 1995 (MBIA) .. 5.25 07/01/15 1,015,090
500 Phoenix,
Refg Ser 1993 A ................................................ 5.25 07/01/12 515,485
1,550 Refg Ser 1992 ................................................. 6.375 07/01/13 1,696,630
1,000 Ser 1998 ....................................................... 4.50 07/01/18 932,230
750 Tucson, Refg Ser 1995 (FGIC) .................................... 5.50 07/01/12 786,555
1,000 Puerto Rico, Public Improvement Ser 1998 (MBIA) ................. 6.00 07/01/16 1,128,340
- ----------- -------------
6,000 6,291,416
- ----------- -------------
Educational Facilities Revenue (5.2%)
1,000 Arizona Board of Regents, Arizona State University Ser 1992 A ... 5.50 07/01/19 1,019,920
1,000 University of Arizona, Telecommunications Ser 1991 COPs ........ 6.50 07/15/12 1,103,520
- ----------- -------------
2,000 2,123,440
- ----------- -------------
Electric Revenue (4.5%)
820 Salt River Project Agricultural Improvement & Power District,
Refg 1992 Ser D ................................................ 6.25 01/01/27 879,311
1,000 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ....... 4.50 07/01/19 926,640
- ----------- -------------
1,820 1,805,951
- ----------- -------------
Hospital Revenue (10.0%)
700 Arizona Health Facilities Authority, Phoenix Memorial Hospital
Refg Ser 1991 .................................................. 8.20 06/01/21 758,660
2,000 Maricopa County Industrial Development Authority, Catholic
Healthcare West 1992 Ser A (MBIA) ............................. 5.75 07/01/11 2,128,780
1,100 Pima County Industrial Development Authority, Carondelet Health
Care
Corp Ser 1993 (MBIA)** ........................................ 5.25 07/01/13 1,156,287
- ----------- -------------
3,800 4,043,727
- ----------- -------------
Industrial Development/Pollution Control Revenue (9.5%)
1,000 Greenlee County Industrial Development Authority, Phelps Dodge
Corp Refg 1994 ................................................. 5.45 06/01/09 1,037,940
1,000 Mohave County Industrial Development Authority, Citizens
Utilities Co
1993 Ser B (AMT) ............................................... 5.80 11/15/28 1,027,230
1,700 Santa Cruz County Industrial Development Authority, Citizens
Utilities Co
Ser 1991 (AMT) ................................................. 7.15 02/01/23 1,778,455
- ----------- -------------
3,700 3,843,625
- ----------- -------------
</TABLE>
6
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -Multi-Family (2.5%)
$ 940 Pima County Industrial Development Authority, Rancho Mirage Ser
1992
- -----------
(AMT)(AGRC) ................................................... 7.05 % 04/01/22 $1,005,311
-------------
Public Facilities Revenue (5.1%)
500 Arizona,
Refg Ser 1992 B COPs (AMBAC) .................................. 6.25 09/01/10 542,795
500 Ser 1991 COPs (FSA) ........................................... 6.25 09/01/11 536,095
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser
1997 A
(AMBAC) ....................................................... 5.00 07/01/28 981,640
- ----------- -------------
2,000 2,060,530
- ----------- -------------
Transportation Facilities Revenue (12.7%)
1,000 Phoenix, Street & Highway User Refg Ser 1993 .................... 5.125 07/01/11 1,022,360
1,000 Phoenix Civic Improvement Corporation, Airport Terminal Excise
Tax
Ser 1998 (AMT) ................................................ 5.00 07/01/14 991,230
1,000 Tucson,
Street & Highway User Sr Lien Refg Ser 1993 ................... 5.50 07/01/09 1,057,590
1,000 Street & Highway User Sr Lien Refg Ser 1996 (MBIA) ............ 6.00 07/01/10 1,133,640
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ..... 4.75 07/01/38 937,210
- ----------- -------------
5,000 5,142,030
- ----------- -------------
Water & Sewer Revenue (25.6%)
1,000 Arizona Wastewater Management Authority, Wastewater Ser 1992 A
(AMBAC) ....................................................... 5.95 07/01/12 1,073,190
1,000 Arizona Water Infrastructure Finance Authority, Water Quality
Ser 1998 A (MBIA)(WI) ......................................... 5.00 07/01/17 987,500
750 Chandler,
Water & Sewer Refg Ser 1991 (FGIC) ............................. 7.00 07/01/12 814,072
1,000 Water & Sewer Refg Ser 1992 (FGIC) ............................. 6.25 07/01/13 1,084,450
1,000 Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) ............... 6.50 07/01/22 1,111,940
1,000 Mesa, Utility Ser 1998 (MBIA) ................................... 4.50 07/02/18 922,720
1,000 Phoenix Civic Improvement Corporation,
Wastewater Jr Lien Ser 1994 .................................... 5.45 07/01/19 1,028,250
1,000 Wastewater Refg Ser 1993 ...................................... 4.75 07/01/23 942,630
2,200 Tucson, Water Refg Ser 1991 ..................................... 6.50 07/01/16 2,365,792
- ----------- -------------
9,950 10,330,544
- ----------- -------------
</TABLE>
7
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Refunded (3.1%)
$1,150 Arizona Health Facilities Authority, Phoenix Baptist Hospital &
Medical
- -----------
Center Inc & Medical Environments Inc Ser 1992 (MBIA) (ETM) .... 6.25% 09/01/11 $1,254,501
-------------
36,360 TOTAL ARIZONA TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $35,795,730) .................................. 37,901,075
- ----------- -------------
SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.0%)
200 Maricopa County, Arizona Public Service Co Ser 1994 F (Demand
06/01/98) ..................................................... 4.00* 05/01/29 200,000
1,400 Tempe, Excise Tax Ser 1998 (Demand 06/01/98) .................... 4.00* 07/01/23 1,400,000
- ----------- -------------
1,600 TOTAL SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS
- -----------
(Identified Cost $1,600,000) .................................... 1,600,000
-------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
$37,960 TOTAL INVESTMENTS (Identified Cost $37,395,730) (a) ..................... 97.8% 39,501,075
=========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 2.2 886,607
-------- ------------
NET ASSETS .............................................................. 100.0% $40,387,682
======== ============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
WI Security purchased on a "when-issued" basis.
* Current coupon of variable rate demand obligation.
** A portion of this security is segregated in connection with the
purchase of a "when-issued" security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$2,145,675 and the aggregate gross unrealized depreciation is
$40,330, resulting in net unrealized appreciation of $2,105,345.
Bond Insurance:
AGRC Asset Guaranty Reinsurance Company.
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
8
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (95.6%)
General Obligation (6.0%)
$2,000 California, Various Purpose 04/01/93 (FSA) ..................... 5.50 % 04/01/19 $2,049,040
2,500 Carlsbad Unified School District, Ser 1997 (FGIC) .............. 0.00 11/01/16 976,250
3,000 Mojave Water Agency, Impr Dist M Morongo Basin Pipeline Refg
Ser 1996 (FGIC) ............................................... 5.80 09/01/22 3,188,010
- ----------- --------------
7,500 6,213,300
- ----------- --------------
Educational Facilities Revenue (12.0%)
California Educational Facilities Authority,
2,000 Carnegie Institution of Washington 1993 Ser A ................. 5.60 10/01/23 2,057,960
4,000 Claremont Colleges Ser 1992 ................................... 6.375 05/01/22 4,281,600
2,000 Loyola Marymount University Refg Ser 1992 ..................... 6.00 10/01/14 2,088,120
1,500 University of San Diego Refg Ser 1998 (AMBAC) ................. 4.75 10/01/15 1,456,755
2,500 University of Southern California Ser 1993 B .................. 5.80 10/01/15 2,646,575
- ----------- --------------
12,000 12,531,010
- ----------- --------------
Electric Revenue (11.7%)
2,000 Kings River Conservation District, Pine Flat Power Ser D ....... 6.00 01/01/17 2,093,060
2,000 Los Angeles Department of Water & Power, Refg Issue of 1993
(Secondary AMBAC) ............................................. 5.375 09/01/23 2,021,960
1,000 Sacramento Municipal Utility District, Refg 1993 Ser D (MBIA) .. 5.625 11/15/15 1,039,080
5,000 Southern California Public Power Authority, Mead -Phoenix
(AMBAC) ....................................................... 5.15 07/01/15 5,143,300
2,000 Turlock Irrigation District, Refg 1998 Ser A (MBIA) ............ 5.00 01/01/26 1,953,100
- ----------- --------------
12,000 12,250,500
- ----------- --------------
Hospital Revenue (15.2%)
California Health Facilities Financing Authority,
2,000 Catholic Health Corp Ser 1992 (MBIA) .......................... 6.00 07/01/13 2,155,080
2,000 Cedars-Sinai Medical Center Ser 1997 A (MBIA) ................. 5.25 08/01/27 1,999,840
3,000 Scripps Memorial Hospitals Ser 1992 A (MBIA) .................. 6.375 10/01/22 3,273,690
California Statewide Communities Development Authority,
2,000 Cedars-Sinai Medical Center Ser 1992 COPs ..................... 6.50 08/01/12 2,282,100
2,000 John Muir/Mount Diablo Health COPs (MBIA) ..................... 5.125 08/15/22 1,968,500
Duarte,
2,000 City of Hope National Medical Center Ser 1993 COPs ............ 6.00 04/01/08 2,107,380
2,000 City of Hope National Medical Center Ser 1993 COPs ............ 6.125 04/01/13 2,102,820
- ----------- --------------
15,000 15,889,410
- ----------- --------------
Industrial Development/Pollution Control Revenue (2.6%)
California Pollution Control Financing Authority,
1,000 Pacific Gas & Electric Co 1992 Ser A (AMT) .................... 6.625 06/01/09 1,087,680
1,500 San Diego Gas and Electric Co 1996 Ser A ...................... 5.90 06/01/14 1,652,745
- ----------- --------------
2,500 2,740,425
- ----------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -Multi-Family (2.0%)
$2,000 California Housing Finance Agency, Rental II 1992 Ser B ........ 6.70 % 08/01/15 $2,127,800
- ----------- --------------
Mortgage Revenue -Single Family (4.9%)
690 California Housing Finance Agency, Home 1991 Ser C (AMT)(MBIA) . 7.00 08/01/23 736,416
3,000 California Rural Home Finance Authority, 1997 Ser A ............ 7.00 09/01/29 3,398,940
935 Puerto Rico Housing Finance Corporation, Portfolio One
GNMA-Backed
Ser C ......................................................... 6.85 10/15/23 1,000,460
- ----------- --------------
4,625 5,135,816
- ----------- --------------
Public Facilities Revenue (7.8%)
5,000 Anaheim Public Financing Authority, 1997 Ser C (FSA) ........... 0.00 09/01/26 1,149,550
2,000 San Francisco California Redevelopment Agency, Ser 1998 (FSA) .. 5.00 07/01/25 1,953,500
2,000 San Jose Financing Authority, Convention Center Refg 1993 Ser C 6.375 09/01/13 2,133,620
2,700 Torrance, Refg 1991 COPs ....................................... 6.80 07/01/12 2,924,964
- ----------- --------------
11,700 8,161,634
- ----------- --------------
Tax Allocation Revenue (1.0%)
1,000 Industry Urban-Development Agency,
Transportation-Distribution-Industrial Redev Proj #3 1992 Refg 6.90 11/01/16 1,092,730
- ----------- --------------
Transportation Facilities Revenue (9.0%)
2,000 Los Angeles County Transportation Commission, Sales Tax Ser
1991-B ........................................................ 6.50 07/01/13 2,144,120
2,000 San Francisco Bay Area Rapid Transit District, Sales Tax Ser
1998 (AMBAC) 4.75 07/01/23 1,893,340
San Joaquin Hills Transportation Corridor Agency,
3,000 Toll Road Refg Ser 1997 A (MBIA) .............................. 0.00 01/15/26 712,830
2,000 Toll Road Refg Ser 1997 A (MBIA) .............................. 5.25 01/15/30 2,001,480
5,000 Toll Road Refg Ser 1997 A (MBIA) .............................. 0.00 01/15/35 739,650
2,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ..... 4.75 07/01/38 1,874,420
- ----------- --------------
16,000 9,365,840
- ----------- --------------
Water & Sewer Revenue (16.9%)
1,000 Alameda County Water District, 1992 COPs (MBIA) ................ 6.20 06/01/13 1,079,150
745 California Department of Water Resources, Central Valley Ser J-2 6.00 12/01/20 787,800
1,000 Contra Costa Water Authority, 1992 Ser E (AMBAC) ............... 6.25 10/01/12 1,159,160
3,000 East Bay Municipal Utility District, Water Refg Ser 1992 ....... 6.00 06/01/20 3,174,870
4,000 Eastern Municipal Water District, Water & Sewer Refg Ser 1998 A
COPs (FGIC) ................................................... 4.75 07/01/23 3,775,880
1,000 Los Angeles, Wastewater 1991 Ser C ............................. 7.10 06/01/18 1,048,760
2,600 Metropolitan Water District of Southern California, Waterworks
1997 Ser A ..................................................... 5.00 07/01/26 2,538,536
2,000 San Francisco Public Utilities Commission, Water 1992 Refg Ser A 6.00 11/01/15 2,119,000
2,000 Stockton, Waste Water 1998 Ser A (MBIA) ........................ 5.00 09/01/23 1,949,440
- ----------- --------------
17,345 17,632,596
- ----------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Refunded (6.5%)
$2,000 Los Angeles County, 1991 Master Refg COPs ...................... 6.708% 05/01/01 + $2,183,000
4,000 San Diego County Water Authority, Ser 1991-B COPs (MBIA) ....... 6.30 04/27/06 + 4,597,360
- ----------- --------------
6,000 6,780,360
- ----------- --------------
107,670 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $93,963,592) ....................................................... 99,921,421
- ----------- --------------
SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (3.0%)
2,000 California Health Facilities Financing Authority, Adventist
Health West 1998 Ser A (MBIA)(Demand 06/01/98) ................ 3.75 * 09/01/28 2,000,000
1,100 California Statewide Communities Development Authority, House
Ear Institute 1993 Ser A COPs (Demand 06/01/98) ............... 3.75 * 12/01/18 1,100,000
- ----------- --------------
3,100 TOTAL SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
(Identified Cost $3,100,000) ........................................................ 3,100,000
- ----------- --------------
$110,770 TOTAL INVESTMENTS (Identified Cost $97,063,592) (a) ..................... 98.6% 103,021,421
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 1.4 1,514,282
----------- --------------
NET ASSETS .............................................................. 100.0% $104,535,703
=========== ==============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$6,123,829 and the aggregate gross unrealized depreciation is
$166,000, resulting in net unrealized appreciation of $5,957,829.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA TAX-EXEMPT MUNICIPAL BONDS (94.4%)
General Obligation (2.6%)
$1,500 Florida Board of Education, Capital Outlay Refg Ser 1992 A ..... 6.40 % 06/01/19 $1,620,525
- ----------- -------------
Educational Facilities Revenue (2.5%)
1,500 Volusia County Educational Facilities Authority, Embry-Riddle
Aeronautical University Ser 1996 A ............................. 6.125 10/15/16 1,600,170
- ----------- -------------
Electric Revenue (14.2%)
2,000 Jacksonville Electric Authority, St Johns River Power Park Issue
2 Ser 7 ........................................................ 5.50 10/01/14 2,057,520
1,000 Lakeland, Electric & Water Refg Ser 1996 (FGIC) ................. 6.00 10/01/14 1,133,530
Orlando Utilities Commission,
1,000 Refg Ser 1993 A ................................................ 5.25 10/01/14 1,017,590
1,000 Ser 1993 ....................................................... 5.125 10/01/19 999,290
Puerto Rico Electric Power Authority,
2,000 Power Ser DD (FSA) ............................................. 4.50 07/01/19 1,853,280
2,000 Power Ser O ................................................... 5.00 07/01/12 2,000,740
- ----------- -------------
9,000 9,061,950
- ----------- -------------
Hospital Revenue (8.4%)
1,000 Alachua County Health Facilities Authority, Shands Teaching
Hospital & Clinics Ser 1996 A (MBIA) ........................... 6.25 12/01/11 1,162,420
1,000 Jacksonville, University Medical Center Inc Ser 1992 (Connie
Lee) .......................................................... 6.60 02/01/21 1,083,000
1,000 Orange County Health Facilities Authority, Adventist
Health/Sunbelt
Ser 1995 (AMBAC) .............................................. 5.25 11/15/20 999,980
965 Polk County Industrial Development Authority, United Haven
Hospital
1985 Ser 2 (MBIA) ............................................. 6.25 09/01/15 1,052,825
1,000 Tampa Health System, Catholic Health East Health Ser 1998 A
(MBIA) ......................................................... 5.50 11/15/14 1,073,100
- ----------- -------------
4,965 5,371,325
- ----------- -------------
Industrial Development/Pollution Control Revenue (8.5%)
Citrus County,
500 Florida Power Corp Refg Ser 1992 B ............................. 6.35 02/01/22 541,505
2,000 Florida Power Corp Refg Ser 1992 A ............................ 6.625 01/01/27 2,174,780
1,500 St Johns County Industrial Development Authority, Professional
Golf Hall of Fame Ser 1996 (MBIA) .............................. 5.80 09/01/16 1,604,670
1,000 St Lucie County, Florida Power & Light Co Ser 1992 (AMT) ....... 6.70 05/01/27 1,088,060
- ----------- -------------
5,000 5,409,015
- ----------- -------------
Mortgage Revenue -Single Family (3.5%)
505 Brevard County Housing Finance Authority, Refg Ser 1991 B (FSA) . 7.00 03/01/13 533,952
375 Florida Housing Finance Agency, GNMA Collateral 1990 Ser G-1
(AMT) .......................................................... 7.90 03/01/22 396,585
1,230 Puerto Rico Housing Finance Corporation, Portfolio One
GNMA-Backed
Ser C .......................................................... 6.85 10/15/23 1,316,112
- ----------- -------------
2,110 2,246,649
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Public Facilities Revenue (13.3%)
$2,000 Manatee County School Board, COPs (MBIA) ....................... 4.875% 07/01/18 $1,948,660
1,000 Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) .... 6.15 10/01/20 1,084,100
2,000 Orlando, Capital Improvement Refg Ser 1992 ...................... 6.00 10/01/22 2,118,700
3,000 Palm Beach County, Criminal Justice Ser 1997 (FGIC) ............ 5.75 06/01/13 3,319,320
- ----------- -------------
8,000 8,470,780
- ----------- -------------
Resource Recovery Revenue (1.7%)
1,000 Lee County, Solid Waste Ser 1991 A (AMT)(MBIA) .................. 6.50 10/01/13 1,078,200
- ----------- -------------
Transportation Facilities Revenue (20.7%)
Dade County,
1,000 Aviation 1992 Ser B (AMT)(MBIA) ................................ 6.60 10/01/22 1,093,780
1,000 Seaport Refg Ser 1996 (MBIA) ................................... 5.125 10/01/26 994,750
Greater Orlando Aviation Authority,
1,000 Ser 1997 (AMT)(FGIC) .......................................... 5.75 10/01/11 1,091,690
750 Ser 1992 A (AMT)(FGIC) ......................................... 6.50 10/01/12 817,417
1,000 Hillsborough County Aviation Authority, Tampa Int'l Airport
Refg Ser 1993 B (FGIC) ......................................... 5.60 10/01/19 1,033,310
1,500 Lee County, Refg Ser 1991 (AMBAC) .............................. 6.00 10/01/17 1,570,350
Mid-Bay Bridge Authority,
3,000 Refg Ser 1993 A (AMBAC) ........................................ 5.95 10/01/22 3,242,610
3,000 Ser 1997 A (AMBAC) ............................................. 0.00 10/01/24 749,070
1,500 Osceola County, Osceola Parkway (MBIA) .......................... 6.10 04/01/17 1,613,340
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ..... 4.75 07/01/38 937,210
- ----------- -------------
14,750 13,143,527
- ----------- -------------
Water & Sewer Revenue (8.2%)
2,000 Dade County, Water & Sewer Ser 1995 (FGIC) ...................... 5.50 10/01/25 2,063,200
1,000 Orange County, Water Utilities Ser 1992 (AMBAC) ................. 6.25 10/01/17 1,080,800
1,000 Sunrise, Utility Refg Ser 1998 (AMBAC) .......................... 5.50 10/01/18 1,071,270
1,000 Tampa, Water & Sewer Ser 1995 (FGIC) ............................ 5.125 10/01/17 1,005,460
- ----------- -------------
5,000 5,220,730
- ----------- -------------
Other Revenue (3.0%)
2,000 Miami-Dade County, Special Subordinated Ser 1997 B (MBIA) ...... 5.00 10/01/37 1,939,660
- ----------- -------------
Refunded (7.8%)
500 Cape Canaveral Hospital District, Cape Canaveral Hospital Ser
1991 COPs (AMBAC) ............................................. 6.875 01/01/01+ 543,765
1,000 Hillsborough County Industrial Authority, Allegany Health/John
Knox Village of Tampa Bay Inc Ser 1992 (MBIA) .................. 6.375 12/01/03+ 1,089,170
1,000 South Broward Hospital District, Ser 1991 B & C (AMBAC) ......... 6.611 05/01/01+ 1,089,720
2,000 Sunrise, Utility Ser 1996 A (AMBAC) ............................. 5.75 10/01/06+ 2,218,280
- ----------- -------------
4,500 4,940,935
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$59,325 TOTAL FLORIDA TAX-EXEMPT MUNICIPAL BONDS
- -----------
(Identified Cost $56,114,369) ....................................................... $60,103,466
-------------
SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS (3.9%)
1,450 Escambia County, Gulf Power Co Ser 1997 (Demand 06/01/98) ...... 4.00*% 07/01/22 1,450,000
1,000 Hillsborough County Industrial Development Authority, Tampa
Electric Co Ser 1992 (Demand 06/01/98) ........................ 3.85* 05/15/18 1,000,000
- ----------- -------------
2,450 TOTAL SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS
- -----------
(Identified Cost $2,450,000) ......................................................... 2,450,000
-------------
$61,775 TOTAL INVESTMENTS (Identified Cost $58,564,369) (a) ...................... 98.3% 62,553,466
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........................... 1.7 1,089,489
-------------
NET ASSETS ............................................................... 100.0% $63,642,955
=========== =============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$3,994,004 and the aggregate gross unrealized depreciation is
$4,907, resulting in net unrealized appreciation of $3,989,097.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
Connie Lee Connie Lee Insurance Company.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MASSACHUSETTS SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS (90.5%)
General Obligation (4.0%)
$ 500 Massachusetts, Refg 1992 Ser B ................................. 6.50 % 08/01/08 $ 585,325
- ----------- -------------
Educational Facilities Revenue (20.4%)
Massachusetts Health & Educational Facilities Authority,
400 Boston University Ser K & L (MBIA) ............................ 6.66 10/01/31 434,980
400 Suffolk University Ser B (Connie Lee) ......................... 6.25 07/01/12 429,108
300 Suffolk University Ser C (Connie Lee) ......................... 5.75 07/01/26 315,942
500 University of Massachusetts Foundation Inc/Medical School
Research
Ser A (Connie Lee) ........................................... 6.00 07/01/23 536,625
Massachusetts Industrial Finance Agency,
500 College of the Holy Cross 1996 Issue (MBIA) ................... 5.50 03/01/16 518,680
300 Mount Holyoke College Refg Ser 1992 A (MBIA) .................. 6.30 07/01/13 322,248
500 Tufts University Ser H (MBIA) ................................. 4.75 02/15/28 469,700
- ----------- -------------
2,900 3,027,283
- ----------- -------------
Electric Revenue (9.8%)
500 Massachusetts Municipal Wholesale Electric Company, Power Supply
1992 Ser C .................................................... 6.625 07/01/18 538,240
Puerto Rico Electric Power Authority,
400 Power Ser DD (FSA) ............................................ 4.50 07/01/19 370,656
500 Power Ser X ................................................... 6.00 07/01/15 540,925
- ----------- -------------
1,400 1,449,821
- ----------- -------------
Hospital Revenue (15.6%)
500 Boston, Boston City Hospital -FHA Insured Mtge Refg Ser B ...... 5.75 02/15/13 517,300
Massachusetts Health & Educational Facilities Authority,
500 Lahey Clinic Medical Center Ser B (MBIA) ...................... 5.625 07/01/15 517,230
1,000 Massachusetts General Hospital Ser F (MBIA) ................... 6.00 07/01/15 1,064,600
200 McLean Hospital Ser C (FGIC) .................................. 6.625 07/01/15 218,878
- ----------- -------------
2,200 2,318,008
- ----------- -------------
Industrial Development/Pollution Control Revenue (7.0%)
1,000 Massachusetts Industrial Finance Agency, Eastern Edison Co Refg
Ser 1993 ....................................................... 5.875 08/01/08 1,038,990
- ----------- -------------
Mortgage Revenue -Multi-Family (3.4%)
470 Massachusetts Housing Finance Agency, Rental 1994 Ser A
(AMT)(AMBAC) ................................................... 6.60 07/01/14 506,214
- ----------- -------------
Mortgage Revenue -Single Family (4.6%)
Massachusetts Housing Finance Agency,
435 Ser 21 (AMT) .................................................. 6.30 06/01/25 451,917
220 Ser 21 (AMT) .................................................. 7.125 06/01/25 235,662
- ----------- -------------
655 687,579
- ----------- -------------
Student Loan Revenue (4.0%)
130 Massachusetts Educational Facilities Authority, Education Loan
Issue D
Ser A 1991 (AMT)(MBIA) ........................................ 7.25 01/01/09 140,180
400 New England Education Loan Marketing Corporation, 1992 Sub Issue
H (AMT) ....................................................... 6.90 11/01/09 450,268
- ----------- -------------
530 590,448
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MASSACHUSETTS SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (10.6%)
$500 Massachusetts Bay Transportation Authority, 1998 Ser A (MBIA) .. 5.50% 03/01/15 $534,570
500 Massachusetts Port Authority, Refg Ser 1998 A .................. 5.75 07/01/12 550,910
500 Massachusetts Turnpike Authority, 1997 Ser A (MBIA) ............ 5.00 01/01/37 481,790
- ----------- -------------
1,500 1,567,270
- ----------- -------------
Water & Sewer Revenue (10.4%)
500 Boston Water & Sewer Commission, 1992 Ser A .................... 5.75 11/01/13 548,450
500 Massachusetts Water Pollution Abatement Trust, Pool Ser 2 ...... 5.70 02/01/12 534,285
500 Massachusetts Water Resources Authority, 1998 Ser A (FSA) ...... 4.75 08/01/27 466,375
- ----------- -------------
1,500 1,549,110
- ----------- -------------
Refunded (0.7%)
100 Massachusetts Health & Educational Facilities Authority, Amherst
College Ser E ................................................. 6.80 11/01/01 + 110,364
- ----------- -------------
12,755 TOTAL MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $12,538,864) ....................................................... 13,430,412
- ----------- -------------
SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATIONS (6.1%)
700 Massachusetts Industrial Finance Agency, New England Power Co
1992 Ser (Demand 06/01/98) .................................... 3.90* 10/01/22 700,000
200 Massachusetts Health & Educational Facilities Authority, Capital
Assets Ser D (MBIA)(Demand 06/01/98) .......................... 3.70* 01/01/35 200,000
- ----------- -------------
900 TOTAL SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATIONS
- -----------
(Identified Cost $900,000) .......................................................... 900,000
-------------
$13,655 TOTAL INVESTMENTS (Identified Cost $13,438,864) (a) ..................... 96.6% 14,330,412
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 3.4 501,801
----------- -------------
NET ASSETS .............................................................. 100.0% $14,832,213
=========== =============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$900,716 and the aggregate gross unrealized depreciation is
$9,168, resulting in net unrealized appreciation of $891,548.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
Connie Lee Connie Lee Insurance Company.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MICHIGAN
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN TAX-EXEMPT MUNICIPAL BONDS (93.5%)
General Obligation (19.6%)
$ 800 Chelsea School District, 1995 Bldg & Site (FGIC) ............... 5.875% 05/01/25 $ 846,904
500 Detroit, Ser 1997 A (MBIA) ..................................... 5.00 04/01/18 491,935
800 Holly Area School District, 1995 Bldg & Site (FGIC) ............ 5.375 05/01/13 826,000
800 Mona Shores Public Schools, 1995 Bldg & Site (FGIC) ............ 5.80 05/01/17 851,104
800 Puerto Rico, Pub Impr Ser 1998 (MBIA) .......................... 4.875 07/01/23 775,744
- ----------- -------------
3,700 3,791,687
- ----------- -------------
Educational Facilities Revenue (13.1%)
800 Central Michigan University, Refg Ser 1993 (AMBAC) ............. 5.50 10/01/10 836,464
800 Michigan State University, Ser 1992 A .......................... 6.00 08/15/16 850,552
800 Oakland University, Board of Trustees, Ser 1995 (MBIA) ......... 5.75 05/15/26 841,712
- ----------- -------------
2,400 2,528,728
- ----------- -------------
Electric Revenue (9.2%)
500 Michigan Public Power Agency, Belle River 1993 A ............... 5.25 01/01/18 500,250
500 Wyandotte, Electric Refg 1992 (MBIA) ........................... 6.25 10/01/17 544,005
800 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ....... 4.50 07/01/19 741,312
- ----------- -------------
1,800 1,785,567
- ----------- -------------
Hospital Revenue (7.2%)
585 Flint Hospital Building Authority, Hurley Medical Center Refg
Ser 1998 A .................................................... 5.25 07/01/16 576,243
800 Michigan Hospital Finance Authority, Mercy Health Services 1996
Ser R
(AMBAC) ....................................................... 5.375 08/15/16 813,456
- ----------- -------------
1,385 1,389,699
- ----------- -------------
Industrial Development/Pollution Control Revenue (2.9%)
500 Monroe County, Detroit Edison Co Collateralized Ser 1-1992 (AMT)
(MBIA) ........................................................ 6.875 09/01/22 551,295
- ----------- -------------
Mortgage Revenue -Multi-Family (10.0%)
Michigan Housing Development Authority,
500 Rental Ser 1992 A ............................................. 6.60 04/01/12 540,515
915 1992 Ser A (FSA) .............................................. 6.50 04/01/23 970,101
400 Ser 1990 A (AMT) .............................................. 7.70 04/01/23 429,108
- ----------- -------------
1,815 1,939,724
- ----------- -------------
Public Facilities (5.5%)
1,000 Michigan Building Authority, Refg Ser I ........................ 6.25 10/01/20 1,068,280
- ----------- -------------
Transportation Facilities Revenue (3.8%)
250 Wayne County, Detroit Metropolitan Wayne County Airport Sub Lien
Ser 1991 B (AMT)(MBIA) ........................................ 6.75 12/01/21 271,737
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ..... 4.75 07/01/38 468,605
- ----------- -------------
750 740,342
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MICHIGAN
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water & Sewer Revenue (7.6%)
Detroit,
$1,000 Sewage Refg Ser 1993 A (FGIC) ................................. 5.70 % 07/01/23 $1,037,630
400 Water Supply Refg Ser 1992 (FGIC) ............................. 6.375 07/01/22 436,508
- ----------- -------------
1,400 1,474,138
- ----------- -------------
Refunded (14.6%)
1,000 Detroit, Water Supply Refg Ser 1992 (FGIC) ..................... 6.375 07/01/02+ 1,098,760
University of Michigan,
400 Ser 1990 ...................................................... 6.375 12/01/00+ 422,464
1,200 Medical Service Plan Ser 1991 ................................. 6.50 12/01/01+ 1,300,416
- ----------- -------------
2,600 2,821,640
- ----------- -------------
17,350 TOTAL MICHIGAN TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $16,971,113) ....................................................... 18,091,100
- ----------- -------------
SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.7%)
500 Delta County Economic Development Corporation, Mead-Escanaba
Paper Corp 1985 Ser E (Demand 06/01/98) ....................... 4.00 * 12/01/23 500,000
400 Royal Oak Hospital Finance Authority, William Beaumont Hospital
Ser 1996 J (Demand 06/01/98) .................................. 4.00 * 01/01/03 400,000
- ----------- -------------
900 TOTAL SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS
(Identified Cost $900,000) .......................................................... 900,000
- ----------- -------------
$18,250 TOTAL INVESTMENTS (Identified Cost $17,871,113) (a) ..................... 98.2% 18,991,100
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 1.8 345,816
----------- -------------
NET ASSETS .............................................................. 100.0% $19,336,916
=========== =============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross and net unrealized
appreciation is $1,119,987.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA TAX-EXEMPT MUNICIPAL BONDS (96.4%)
General Obligation (8.5%)
Minneapolis,
$100 Sales Tax Refg Ser 1992 ........................................ 6.25 % 04/01/12 $108,599
300 Dtd 08/15/92 ................................................... 5.90 12/01/13 319,092
300 Minnesota, Various Purpose Refg Ser 1998 (WI) ................... 5.00 06/01/16 301,158
- ----------- -----------
700 728,849
- ----------- -----------
Educational Facilities Revenue (14.5%)
Minnesota Higher Education Facilities Authority,
200 Northfield St Olaf College 1992 ................................ 6.40 10/01/21 217,200
1,000 University of Minnesota Ser 1993 A ............................. 4.80 08/15/03 1,024,420
- ----------- -----------
1,200 1,241,620
- ----------- -----------
Electric Revenue (9.6%)
400 Southern Minnesota Municipal Power Agency, Ser 1993 B ........... 5.00 01/01/13 397,120
400 Western Minnesota Municipal Power Agency, Refg 1996 Ser A
(AMBAC) ........................................................ 5.50 01/01/12 421,612
- ----------- -----------
800 818,732
- ----------- -----------
Hospital Revenue (13.6%)
400 Robbinsdale, North Memorial Medical Center Ser 1993 A (AMBAC) ... 5.45 05/15/13 413,264
Rochester,
200 Mayo Foundation/Mayo Medical Center Ser 1992 I ................. 5.75 11/15/21 207,298
200 Mayo Foundation/Mayo Medical Center Ser 1992 F ................. 6.25 11/15/21 216,856
300 Saint Paul Housing & Redevelopment Authority, Health East Refg
Ser 1993-A ..................................................... 6.625 11/01/17 322,728
- ----------- -----------
1,100 1,160,146
- ----------- -----------
Industrial Development/Pollution Control Revenue (18.3%)
500 Anoka County, United Power Assoc Ser 1987 A (NRU-CFC Gtd)(AMT)** 6.95 12/01/08 533,385
400 Bass Brook, Minnesota Power & Light Co Refg Ser 1992 ............ 6.00 07/01/22 415,544
Minneapolis Community Development Agency,
100 Ltd Tax Supported Common Bond Fund Ser 1991-3 .................. 8.25 12/01/11 114,239
100 Ltd Tax Supported Common Bond Fund Ser 1991-1 (AMT) ............ 8.00 12/01/16 111,596
400 Minnesota Public Facilities Authority, Water Pollution Control
1998 Ser A ..................................................... 4.75 03/01/19 385,144
- ----------- -----------
1,500 1,559,908
- ----------- -----------
Mortgage Revenue -Multi-Family (6.1%)
300 Burnsville, Summit Park Apts -FHA Insured Refg Ser 1993 ......... 6.00 07/01/33 308,337
200 Minnesota Housing Finance Agency, Ser 1992 A ................... 6.95 08/01/17 213,470
- ----------- -----------
500 521,807
- ----------- -----------
Mortgage Revenue -Single Family (10.7%)
145 Minneapolis-Saint Paul Housing Finance Board, GNMA-Backed Phase
IX
Ser 1991 (AMT) ................................................. 7.25 08/01/21 152,982
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Minnesota Housing Finance Agency,
$85 Ser 1990 D (AMT) ............................................... 8.00% 01/01/23 $90,052
435 Ser 1992 C-1 (AMT) ............................................. 6.75 07/01/23 460,635
200 Ser 1992 H (AMT) ............................................... 6.50 01/01/26 210,804
- ----------- -----------
865 914,473
- ----------- -----------
Nursing & Health Related Facilities Revenue (6.4%)
500 Minneapolis & Saint Paul Housing & Redevelopment Authority,
Group
- -----------
Health Plan Inc Ser 1992 ...................................... 6.75 12/01/13 547,800
-----------
Refunded (8.7%)
300 Hennepin County, Ser 1991 COPs .................................. 6.80 11/15/01 + 326,448
400 Saint Paul Housing & Redevelopment Authority, Civic Center Ser
1993 (ETM) .................................................... 5.45 11/01/13 419,744
- ----------- -----------
700 746,192
- ----------- -----------
7,865 TOTAL MINNESOTA TAX-EXEMPT MUNICIPAL BONDS
- -----------
(Identified Cost $7,780,420) ......................................................... 8,239,527
-----------
SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.7%)
100 Beltrami County, Northwood Panelboard Co Ser 1991 (Demand
06/01/98) ..................................................... 3.95* 12/01/21 100,000
300 Minneapolis & St Paul Housing & Redevelopment Authority,
Children's Health Care Ser 1995 B (Demand 06/01/98) ........... 4.05* 08/15/25 300,000
- ----------- -----------
400 TOTAL SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS
- -----------
(Identified Cost $400,000) ........................................................... 400,000
-----------
$8,265 TOTAL INVESTMENTS (Identified Cost $8,180,420) (a) ....................... 101.1% 8,639,527
===========
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS .......................... (1.1) (92,228)
----------- -----------
NET ASSETS .............................................................. 100.0% $8,547,299
=========== ===========
</TABLE>
- ------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
WI Security purchased on a "when-issued" basis.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
** A portion of this security is segregated in connection with the
purchase of a "when-issued" security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross and net unrealized
appreciation is $459,107.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS (94.6%)
General Obligation (2.3%)
$1,000 New Jersey, Ser 1998 ........................................... 4.50 % 03/01/18 $ 932,860
- ----------- -------------
Educational Facilities Revenue (15.3%)
New Jersey Economic Development Authority,
2,000 Educational Testing Service Ser 1995 A (MBIA) .................. 5.90 05/15/15 2,158,820
1,000 The Lawrenceville School Ser A 1996 ........................... 5.75 07/01/16 1,076,550
500 The Seeing Eye Inc 1991 ........................................ 7.30 04/01/11 532,135
500 Rutgers, The State University Refg Ser R ........................ 6.50 05/01/13 544,345
2,000 University of Medicine & Dentistry, 1997 Ser A (MBIA) .......... 5.00 09/01/17 1,985,180
- ----------- -------------
6,000 6,297,030
- ----------- -------------
Electric Revenue (4.9%)
2,000 Puerto Rico Electric Power Authority, Power Ser O ............... 5.00 07/01/12 2,000,740
- ----------- -------------
Hospital Revenue (12.8%)
1,000 Camden County Improvement Authority, Catholic Health East Ser
1998 A
(AMBAC) ....................................................... 5.00 11/15/28 975,540
New Jersey Health Care Facilities Financing Authority,
1,000 AHS Hospital Corp Ser 1997 A (AMBAC) .......................... 6.00 07/01/13 1,127,160
1,000 Atlantic City Medical Center Ser C ............................ 6.80 07/01/11 1,101,650
1,000 Columbus Hospital Ser A ....................................... 7.50 07/01/08 1,066,770
460 Pascack Valley Hospital Assn Ser 1991 ......................... 6.90 07/01/21 491,643
465 Robert Wood Johnson University Hospital Ser B (MBIA) .......... 6.625 07/01/16 502,405
- ----------- -------------
4,925 5,265,168
- ----------- -------------
Industrial Development/Pollution Control Revenue (6.5%)
500 Middlesex County Pollution Control Financing Authority, Amerada
Hess Corp Refg Ser 1992 ........................................ 6.875 12/01/22 546,615
1,000 New Jersey Economic Development Authority, Elizabethtown Water
Co
1995 Ser (AMT)(MBIA) ........................................... 5.60 12/01/25 1,031,210
1,000 Salem County Pollution Control Financing Authority, E I du Pont
de Nemours & Co 1992 Ser A (AMT) ............................... 6.125 07/15/22 1,070,520
- ----------- -------------
2,500 2,648,345
- ----------- -------------
Mortgage Revenue -Multi-Family (9.1%)
New Jersey Housing & Mortgage Finance Agency,
2,000 1995 Ser A (AMBAC) ............................................ 6.00 11/01/14 2,127,640
1,000 Presidential Plaza at Newport -FHA Insured Mtges Refg 1991 Ser
1 ............................................................ 7.00 05/01/30 1,083,310
500 Rental 1991 Ser A (AMT) ....................................... 7.25 11/01/22 526,695
- ----------- -------------
3,500 3,737,645
- ----------- -------------
Nursing & Health Related Facilities Revenue (2.4%)
920 New Jersey Health Care Facilities Financing Authority, Spectrum
For Living -FHA Insured Mortgage Refg Ser B ................... 6.50 02/01/22 995,339
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Public Facilities Revenue (6.1%)
$1,500 New Jersey Sports & Exposition Authority, State Contract 1993
Ser A ......................................................... 5.50% 09/01/23 $1,534,050
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser
1997 A (AMBAC) ................................................ 5.00 07/01/28 981,640
- ----------- -------------
2,500 2,515,690
- ----------- -------------
Resource Recovery Revenue (2.3%)
900 Warren County Pollution Control Financing Authority, Warren
Energy Resource Co Ltd Partnership Ser 1984 (MBIA) ............ 6.60 12/01/07 923,328
- ----------- -------------
Transportation Facilities Revenue (14.1%)
1,500 Delaware River Port Authority, Ser 1995 (FGIC) .................. 5.50 01/01/26 1,546,125
1,500 New Jersey Highway Authority, Sr Parkway Refg 1992 Ser .......... 6.25 01/01/14 1,625,130
1,000 New Jersey Turnpike Authority, Ser 1991 C ....................... 5.75 01/01/11 1,020,630
1,500 Port Authority of New York & New Jersey, Cons 99th Ser
(AMT)(FGIC) ................................................... 5.75 05/01/15 1,580,235
- ----------- -------------
5,500 5,772,120
- ----------- -------------
Water & Sewer Revenue (18.8%)
1,000 Atlantic City Municipal Utilities Authority, Refg Ser 1993 ..... 5.75 05/01/17 1,034,880
1,500 Bayonne Municipal Utilities Authority, Water Ser 1997 (MBIA) ... 5.00 01/01/28 1,472,655
1,000 Bergen County Utilities Authority, Water 1998 Ser A (FGIC) ..... 4.75 12/15/15 971,000
1,000 Camden County Municipal Utilities Authority, Sewer Refg Ser 1997
(FGIC) ........................................................ 5.25 07/15/17 1,014,250
1,000 Northwest Bergen County Utilities Authority, Refg 1992 Ser
(MBIA) ........................................................ 6.00 07/15/13 1,085,310
2,000 Passaic Valley Sewerage Commissioners, Ser 1992 D (AMBAC) ....... 5.75 12/01/13 2,132,820
- ----------- -------------
7,500 7,710,915
- ----------- -------------
37,245 TOTAL NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS
- -----------
(Identified Cost $36,310,289) ....................................................... 38,799,180
-------------
SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATION (3.4%)
1,400 New Jersey Economic Development Authority, United Water
- -----------
New Jersey Inc Ser 1996 B (AMBAC)(Demand 06/01/98)
(Identified Cost $1,400,000) .................................. 3.85* 11/01/25 1,400,000
-------------
$38,645 TOTAL INVESTMENTS (Identified Cost $37,710,289) (a) ...................... 98.0% 40,199,180
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 2.0 810,545
---------- -------------
NET ASSETS .............................................................. 100.0% $41,009,725
========== =============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$2,495,768 and the aggregate gross unrealized depreciation is
$6,877, resulting in net unrealized appreciation of $2,488,891.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW YORK
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK TAX-EXEMPT MUNICIPAL BONDS (93.9%)
General Obligation (14.5%)
$500 New York City, 1995 Ser D (MBIA) ............................... 6.20 % 02/01/07 $558,990
500 New York State, Refg Ser 1995 B ................................ 5.70 08/15/13 529,850
Puerto Rico,
300 Public Improvement Refg Ser 1992 A ............................. 6.00 07/01/14 318,984
400 Public Improvement Ser 1998 (MBIA) ............................. 4.875 07/01/23 387,872
- ----------- ------------
1,700 1,795,696
- ----------- ------------
Educational Facilities Revenue (21.2%)
500 Hempstead Industrial Development Agency, Hofstra University Ser
1996 (MBIA) .................................................... 5.80 07/01/15 538,180
New York State Dormitory Authority,
300 Cooper Union Ser 1996 (AMBAC) ................................. 5.375 07/01/16 306,666
400 Manhattan College Ser 1992 (AGRC) .............................. 6.50 07/01/19 433,564
800 State University Ser 1993 A ................................... 5.25 05/15/15 825,448
500 University of Rochester Ser 1993 A ............................. 5.625 07/01/12 524,515
- ----------- ------------
2,500 2,628,373
- ----------- ------------
Electric Revenue (7.5%)
500 Long Island Power Authority, Electric Ser 1998 A (FSA) .......... 5.125 12/01/22 493,475
400 Puerto Rico Electric Power Authority, Power Ser X ............... 6.00 07/01/15 432,740
- ----------- ------------
900 926,215
- ----------- ------------
Hospital Revenue (1.7%)
200 New York State Medical Care Facilities Finance Agency, Insured
Hospital & Nursing Home -FHA Insured Mtge 1992 Ser A ........... 6.70 08/15/23 217,350
- ----------- ------------
Industrial Development/Pollution Control Revenue (15.8%)
500 New York City Industrial Development Agency, Japan Airlines Co
1991 (AMT)(FSA) ................................................ 6.00 11/01/15 537,010
New York State Energy Research & Development Authority,
1,000 Brooklyn Union Gas Co 1991 Ser A & B (AMT) ..................... 6.952 07/01/26 1,158,410
250 Rochester Gas & Electric Corp Ser 1992 B (AMT)(MBIA) .......... 6.50 05/15/32 270,530
- ----------- ------------
1,750 1,965,950
- ----------- ------------
Mortgage Revenue -Single Family (5.1%)
New York State Mortgage Agency,
500 Home Owners Ser 27 ............................................. 6.90 04/01/15 539,035
95 Home Owners Ser UU (AMT) ....................................... 7.75 10/01/23 100,876
- ----------- ------------
595 639,911
- ----------- ------------
Public Facilities Revenue (4.3%)
500 New York City Cultural Resources Trust, The New York Botanical
Garden Ser 1996 (MBIA) ......................................... 5.75 07/01/16 530,850
- ----------- ------------
Resource Recovery Revenue (4.4%)
500 Oneida-Herkimer Solid Waste Management Authority, Ser 1992 ...... 6.65 04/01/05 542,900
- ----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW YORK
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (12.8%)
$550 Buffalo & Fort Erie Public Bridge Authority, Toll Bridge Ser
1995 (MBIA) ................................................... 5.75 % 01/01/25 $576,229
500 New York State Thruway Authority, Ser C (FGIC) .................. 6.00 01/01/25 541,730
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ...... 4.75 07/01/38 468,605
- ----------- ------------
1,550 1,586,564
- -----------
Water & Sewer Revenue (4.3%)
500 New York City Municipal Water Finance Authority, 1993 Ser A ..... 6.00 06/15/17 529,700
- ----------- ------------
Other Revenue (2.3%)
300 New York City Transitional Finance Authority, 1998 Ser A ........ 5.00 08/15/27 291,453
- ----------- ------------
10,995 TOTAL NEW YORK TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $10,755,500) ...................................................... 11,654,962
- ----------- ------------
SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATION (4.0%)
500 Port Authority of New York & New Jersey, Ser 2 (Demand 06/01/98)
(Identified Cost $500,000) ..................................... 3.85 * 05/01/19 500,000
- ----------- ------------
$11,495 TOTAL INVESTMENTS (Identified Cost $11,255,500)(a) ....................... 97.9% 12,154,962
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 2.1 258,088
---------- ------------
NET ASSETS .............................................................. 100.0% $12,413,050
========== ============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross and net unrealized
appreciation is $899,462.
Bond Insurance:
AGRC Asset Guaranty Reinsurance Company.
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO TAX-EXEMPT MUNICIPAL BONDS (97.4%)
General Obligation (23.6%)
$ 300 Bedford School District, Ser 1993 .............................. 6.25 % 12/01/13 $ 325,713
1,000 Delaware City School District, Constr & Impr (FGIC) ............ 5.75 12/01/20 1,051,440
500 Euclid, Ser 1998 (WI) .......................................... 5.125 12/01/18 501,075
800 North Olmsted, Various Purpose Impr Ltd Tax Ser 1996 (AMBAC) ... 6.20 12/01/11 904,744
700 Rocky River City School District, Impr Ser 1998 ................. 5.375 12/01/17 736,939
800 Puerto Rico, Public Impr Ser 1998 (MBIA) ....................... 4.875 07/01/23 775,744
- ----------- -------------
4,100 4,295,655
- ----------- -------------
Educational Facilities Revenue (10.6%)
500 Ohio Higher Educational Facility Commission, Case Western
Reserve University Ser 1992 .................................... 6.00 10/01/22 531,760
500 University of Cincinnati, General Receipts Ser G ............... 7.00 06/01/11 546,480
800 University of Toledo, Ser 1992 A (FGIC) ........................ 5.90 06/01/20 846,112
- ----------- -------------
1,800 1,924,352
- ----------- -------------
Electric Revenue (7.0%)
500 Hamilton!, Refg 1992 Ser A (FGIC) .............................. 6.00 10/15/12 539,360
800 Puerto Rico Electric Power Authority, Ser DD (FSA) ............. 4.50 07/01/19 741,312
- ----------- -------------
1,300 1,280,672
- ----------- -------------
Hospital Revenue (11.6%)
1,000 Akron Bath & Copley Joint Township Hospital District, Summa
Health
Ser 1992 A ** ................................................. 6.25 11/15/07 1,083,860
Hamilton County,
475 Bethesda Hospital Inc Ser 1986 A .............................. 7.00 01/01/09 480,880
500 Franciscan Sisters of the Poor/Providence Hospital Ser 1992 .... 6.875 07/01/15 539,820
- ----------- -------------
1,975 2,104,560
- ----------- -------------
Industrial Development/Pollution Control Revenue (5.3%)
400 Ashtabula County, Ashland Oil Inc Refg 1992 Ser A .............. 6.90 05/01/10 432,340
500 Ohio Water Development Authority, Dayton Power & Light Co
Collateralized Refg 1992 Ser A ................................ 6.40 08/15/27 539,415
- ----------- -------------
900 971,755
- ----------- -------------
Mortgage Revenue -Single Family (9.5%)
Ohio Housing Finance Agency,
650 GNMA-Backed 1990 Ser A-1 & 2 (AMT) ............................ 6.903 03/24/31 689,787
990 Residential 1996 Ser B-2 (AMT) ................................ 6.10 09/01/28 1,043,401
- ----------- -------------
1,640 1,733,188
- ----------- -------------
Transportation Facilities Revenue (5.5%)
500 Ohio Turnpike Commission, 1994 Ser A ............................ 5.75 02/15/24 527,965
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ..... 4.75 07/01/38 468,605
- ----------- -------------
1,000 996,570
- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water & Sewer Revenue (18.3%)
$ 500 Cleveland, Waterworks Impr & Refg Ser H 1996 (MBIA) ............ 5.75 % 01/01/16 $ 532,580
1,000 Montgomery County, Water Ser 1992 (FGIC) ........................ 6.25 11/15/17 1,091,920
800 Northeast Ohio Regional Sewer District, Wastewater Impr Refg
Ser 1995 (AMBAC) .............................................. 5.60 11/15/13 846,576
800 Ohio Water Development Authority, Water Pollution Ser 1995
(MBIA) ........................................................ 5.60 06/01/10 853,064
- ----------- -------------
3,100 3,324,140
- ----------- -------------
Refunded (6.0%)
1,000 Clermont County, Mercy Health Ser 1991 ......................... 6.733 09/25/01 + 1,099,050
- ----------- -------------
16,815 TOTAL OHIO TAX-EXEMPT MUNICIPAL BONDS
- -----------
(Identified Cost $16,636,998) ....................................................... 17,729,942
-------------
SHORT-TERM OHIO TAX-EXEMPT MUNICIPAL OBLIGATION (2.2%)
400 Cuyahoga County, Cleveland Clinic Foundation Ser 1997 D
(Demand 06/01/98) (Identified Cost $400,000) ................... 4.00 * 01/01/26 400,000
- ----------- -------------
$17,215 TOTAL INVESTMENTS (Identified Cost $17,036,998)(a) ...................... 99.6% 18,129,942
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 0.4 67,940
----------- -------------
NET ASSETS ............................................................... 100.0% $18,197,882
=========== =============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
WI Security purchased on a "when-issued" basis.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
** A portion of this security is segregated in connection with the
purchase of a "when-issued" security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross and net unrealized
appreciation is $1,092,944.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS (91.0%)
General Obligation (6.1%)
$2,000 Berks County, Second Ser 1992 (FGIC) ............................ 5.75 % 11/15/12 $2,102,460
500 Cambria County, Ser 1998 (FGIC) ................................. 5.50 08/15/16 518,605
600 Puerto Rico, Public Improvement Refg Ser 1992 A ................. 6.00 07/01/14 637,968
- ----------- ------------
3,100 3,259,033
- ----------- ------------
Educational Facilities Revenue (13.8%)
2,000 Delaware County Authority, Villanova University Ser 1995
(AMBAC) ........................................................ 5.80 08/01/25 2,116,400
Pennsylvania Higher Educational Facilities Authority,
750 Allegheny College Impr & Refg Ser 1993 B ....................... 6.00 11/01/22 777,645
500 Temple University First Ser 1991 (MBIA) ........................ 6.50 04/01/21 537,650
265 Thomas Jefferson University 1992 Ser A (MBIA) .................. 6.625 08/15/09 292,046
1,000 University of Pennsylvania Ser 1998 ............................ 4.625 07/15/30 907,730
1,000 Pennsylvania State University, Second Refg Ser 1992 ............. 5.50 08/15/16 1,016,730
1,000 Swarthmore Borough Authority, Swarthmore College Ser 1992 ...... 6.00 09/15/20 1,075,650
655 University Pittsburgh, Cap 1992 Ser A (MBIA) .................... 6.125 06/01/21 706,581
- ----------- ------------
7,170 7,430,432
- ----------- ------------
Electric Revenue (1.7%)
1,000 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ....... 4.50 07/01/19 926,640
- ----------- ------------
Hospital Revenue (24.6%)
Allegheny County Hospital Development Authority,
1,000 Catholic Health East Health Ser 1998 A (AMBAC) ................ 4.875 11/15/26 949,130
1,000 Presbyterian University Health Inc Ser 1992 B (MBIA) .......... 6.00 11/01/12 1,079,280
2,000 UPMC Health Ser 1997 B (MBIA) .................................. 5.00 07/01/16 1,969,500
2,000 Delaware County Authority, Catholic Health East Health Ser 1998
A (AMBAC) ...................................................... 4.875 11/15/26 1,895,440
2,000 Lehigh County General Purpose Authority, Lehigh Valley Health
Network 1998 Ser A (MBIA) ...................................... 5.00 07/01/28 1,927,620
Philadelphia Hospitals & Higher Educational Facilities
Authority,
1,750 Chestnut Hill Hospital Ser of 1992 ............................. 6.375 11/15/11 1,884,120
1,000 Children's Hospital of Philadelphia Ser A of 1993 ............. 5.375 02/15/14 1,006,350
1,000 Temple University Hospital 1993 Ser A .......................... 6.50 11/15/08 1,121,880
1,250 Sayre Health Care Facilities Authority, Ser 1985 (AMBAC) ....... 7.15 12/01/10 1,376,825
- ----------- ------------
13,000 13,210,145
- ----------- ------------
Industrial Development/Pollution Control Revenue (2.0%)
1,000 Montgomery County Industrial Development Authority, Philadelphia
- -----------
Electric Co Refg 1991 Ser B (MBIA) ............................. 6.70 12/01/21 1,088,740
------------
Mortgage Revenue -Multi-Family (2.1%)
Pennsylvania Housing Finance Agency,
55 Moderate Rehab Sec 8 Assisted Issue B .......................... 9.00 08/01/01 55,568
1,000 Ser 1992-35 D (AMT) ............................................ 6.20 04/01/25 1,044,720
- ----------- ------------
1,055 1,100,288
- ----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -Single Family (5.2%)
$2,000 Pennsylvania Housing Finance Agency, Ser 1991-31 C (AMT) ....... 7.00 % 10/01/23 $2,138,420
635 Puerto Rico Housing Finance Corporation, Portfolio One
GNMA-Backed
Ser C .......................................................... 6.85 10/15/23 679,457
- ----------- ------------
2,635 2,817,877
- ----------- ------------
Public Facilities Revenue (2.3%)
1,300 Philadelphia Authority For Industrial Development, The Franklin
Institute Ser 1998 ............................................. 5.20 06/15/26 1,248,117
- ----------- ------------
Resource Recovery Revenue (3.9%)
1,000 Lancaster County Solid Waste Management Authority, 1998 Ser B
(AMBAC) ........................................................ 5.375 12/15/15 1,020,580
1,000 Montgomery County Industrial Development Authority, Ser 1989 ... 7.50 01/01/12 1,095,410
- ----------- ------------
2,000 2,115,990
- ----------- ------------
Student Loan Revenue (4.0%)
Pennsylvania Higher Education Assistance Agency,
1,000 1988 Ser D (AMT)(AMBAC) ........................................ 6.05 01/01/19 1,061,360
1,000 1991 Ser B (AMT)(AMBAC) ........................................ 6.854 09/01/26 1,080,600
- ----------- ------------
2,000 2,141,960
- ----------- ------------
Transportation Facilities Revenue (16.4%)
1,000 Guam, Highway 1992 Ser A (FSA) .................................. 6.30 05/01/12 1,083,830
Allegheny County, Greater Pittsburgh Int'l Airport,
1,000 Ser 1997 B (MBIA) .............................................. 5.00 01/01/19 981,050
500 Ser 1992 (AMT)(FSA) ............................................ 6.625 01/01/22 541,095
2,000 Delaware River Port Authority, Ser 1995 (FGIC) .................. 5.50 01/01/26 2,061,500
2,000 Pennsylvania Turnpike Commission, Ser O of 1992 (FGIC) ......... 6.00 12/01/12 2,152,140
1,000 Pittsburgh Public Parking Authority, Ser 1992 A (FGIC) ......... 5.875 12/01/12 1,074,850
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ...... 4.75 07/01/38 937,210
- ----------- ------------
8,500 8,831,675
- ----------- ------------
Water & Sewer Revenue (5.0%)
2,000 Philadelphia, Water & Wastewater Ser 1995 (MBIA) ................ 6.25 08/01/11 2,297,460
2,000 Pittsburgh, Water & Sewer Authority, 1998 Ser B (FGIC) ......... 0.00 09/01/28 410,740
- ----------- ------------
4,000 2,708,200
- ----------- ------------
Other Revenue (3.1%)
1,500 Pennsylvania Finance Authority, Cap Impr Refg Ser 1993 .......... 6.60 11/01/09 1,666,665
- ----------- ------------
Refunded (0.8%)
375 Lehigh County Industrial Development Authority, Strawbridge &
Clothier Refg Ser of 1991 (ETM) ................................ 7.20 12/15/01 397,751
- ----------- ------------
48,635 TOTAL PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS
- -----------
(Identified Cost $46,303,187) ................................... 48,943,513
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.6%)
$400 Mountour County, Geisinger Health Ser 1992 B (Demand 06/01/98) . 4.00*% 07/01/22 $400,000
2,500 Philadelphia Industrial Development Authority, The Fox Chase
Cancer Center Ser 1997 (Demand 06/01/98) ....................... 4.00* 07/01/25 2,500,000
1,200 York County Industrial Development Authority, Philadelphia
Electric Co
Ser 1993 A (Demand 06/01/98) ................................... 3.95* 08/01/16 1,200,000
- ----------- ------------
4,100 TOTAL SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
- -----------
(Identified Cost $4,100,000) ........................................................ 4,100,000
------------
$52,735 TOTAL INVESTMENTS (Identified Cost $50,403,187) (a) ...................... 98.6% 53,043,513
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 1.4 756,902
---------- ------------
NET ASSETS .............................................................. 98.7% $53,800,415
========== ============
</TABLE>
- ------------
AMT Alternative Minimum Tax.
ETM Escrowed to maturity.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$2,753,796 and the aggregate gross unrealized depreciation is
$113,470, resulting in net unrealized appreciation of
$2,640,326.
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Corporation.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
- --------------------------------------------------- ------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value* ............... $39,501,075 $103,021,421 $62,553,466 $14,330,412
Cash ............................................... 38,145 52,889 317,754 93,254
Receivable for:
Investments sold ................................. 1,114,982 -- -- 167,450
Interest ......................................... 771,057 1,527,285 791,794 255,956
Shares of beneficial interest sold ............... 1,935 19,277 115,681 512
Prepaid expenses ................................... 13,725 14,424 11,033 5,545
------------- -------------- ------------- ---------------
TOTAL ASSETS ..................................... 41,440,919 104,635,296 63,789,728 14,853,129
------------- -------------- ------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ............................ 993,889 -- -- --
Shares of beneficial interest repurchased ....... 15,364 3,000 85,265 --
Dividends to shareholders ........................ 10,589 27,936 16,113 3,735
Investment management fee ........................ 11,941 30,848 18,824 4,392
Plan of distribution fee ......................... 5,118 13,220 8,067 1,882
Accrued expenses ................................... 16,336 24,589 18,504 10,907
------------- -------------- ------------- ---------------
TOTAL LIABILITIES ................................ 1,053,237 99,593 146,773 20,916
------------- -------------- ------------- ---------------
NET ASSETS ....................................... $40,387,682 $104,535,703 $63,642,955 $14,832,213
============= ============== ============= ===============
COMPOSITION OF NET ASSETS:
Paid-in-capital .................................... $37,812,883 $ 97,155,440 $58,405,075 $13,778,970
Accumulated undistributed net investment income ... 10,585 27,943 16,110 3,735
Accumulated undistributed net realized gain (loss) 458,869 1,394,491 1,232,673 157,960
Net unrealized appreciation ........................ 2,105,345 5,957,829 3,989,097 891,548
------------- -------------- ------------- ---------------
NET ASSETS ....................................... $40,387,682 $104,535,703 $63,642,955 $14,832,213
============= ============== ============= ===============
*IDENTIFIED COST ................................. $37,395,730 $ 97,063,592 $58,564,369 $13,438,864
============= ============== ============= ===============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ....... 3,773,527 9,439,074 5,719,678 1,319,545
============= ============== ============= ===============
NET ASSET VALUE PER SHARE
(unlimited authorized shares of $.01 par value) .. $10.70 $11.07 $11.13 $11.24
============= ============== ============= ===============
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus 4.17% of net asset value)** $11.15 $11.53 $11.59 $11.71
============= ============== ============= ===============
</TABLE>
- ------------
** On sales of $25,000 or more, the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK
- ------------- ------------ ------------- -------------
<S> <C> <C> <C>
$18,991,100 $8,639,527 $40,199,180 $12,154,962
90,396 89,820 171,277 68,917
-- -- -- --
208,392 131,967 685,341 173,683
62,317 -- 11,446 29,503
8,350 3,927 11,680 6,054
- ------------- ------------ ------------- -------------
19,360,555 8,865,241 41,078,924 12,433,119
- ------------- ------------ ------------- -------------
-- 301,825 -- --
-- -- 25,236 --
4,918 2,131 10,588 3,139
5,686 2,529 12,139 3,663
2,437 1,084 5,202 1,570
10,598 10,373 16,034 11,697
- ------------- ------------ ------------- -------------
23,639 317,942 69,199 20,069
- ------------- ------------ ------------- -------------
$19,336,916 $8,547,299 $41,009,725 $12,413,050
============= ============ ============= =============
$17,948,121 $8,104,336 $38,208,937 $11,319,627
4,918 2,131 10,588 3,138
263,890 (18,275) 301,309 190,823
1,119,987 459,107 2,488,891 899,462
- ------------- ------------ ------------- -------------
$19,336,916 $8,547,299 $41,009,725 $12,413,050
============= ============ ============= =============
$17,871,113 $8,180,420 $37,710,289 $11,255,500
============= ============ ============= =============
1,750,608 794,928 3,719,479 1,101,531
============= ============ ============= =============
$11.05 $10.75 $11.03 $11.27
============= ============ ============= =============
$11.51 $11.20 $11.49 $11.74
============= ============ ============= =============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA
- ------------- --------------
<S> <C>
$18,129,942 $53,043,513
110,510 53,414
197,065 --
269,469 716,754
4,799 76,250
5,063 8,916
- ------------- --------------
18,716,848 53,898,847
- ------------- --------------
494,411 --
-- 39,434
4,729 14,152
5,397 15,828
2,313 6,784
12,116 22,234
- ------------- --------------
518,966 98,432
- ------------- --------------
$18,197,882 $53,800,415
============= ==============
$17,095,903 $50,910,502
4,730 14,155
4,305 235,432
1,092,944 2,640,326
- ------------- --------------
$18,197,882 $53,800,415
============= ==============
$17,036,998 $50,403,187
============= ==============
1,650,435 4,872,514
============= ==============
$11.03 $11.04
============= ==============
$11.49 $11.50
============= ==============
</TABLE>
31
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF OPERATIONS
For the six months ended May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
- --------------------------------------- ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ........................ $1,139,188 $2,884,605 $1,730,403 $397,305
------------ ------------ ------------ ---------------
EXPENSES
Investment management fee .............. 72,050 182,628 112,442 25,597
Plan of distribution fee ............... 28,328 74,121 43,222 10,464
Transfer agent fees and expenses ...... 7,443 15,984 10,229 3,011
Professional fees ...................... 12,245 13,250 12,267 10,779
Shareholder reports and notices ....... 4,717 9,927 6,875 1,677
Trustees' fees and expenses ............ 495 2,839 1,528 435
Custodian fees ......................... 1,194 2,882 1,985 809
Registration fees ...................... 4,106 1,868 3,047 3,709
Other .................................. 3,654 4,217 4,415 3,101
------------ ------------ ------------ ---------------
TOTAL EXPENSES ....................... 134,232 307,716 196,010 59,582
Less: expense offset ................... (1,192) (2,876) (1,985) (809)
------------ ------------ ------------ ---------------
NET EXPENSES ......................... 133,040 304,840 194,025 58,773
------------ ------------ ------------ ---------------
NET INVESTMENT INCOME ................ 1,006,148 2,579,765 1,536,378 338,532
------------ ------------ ------------ ---------------
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain ...................... 575,518 1,845,936 1,313,437 141,091
Net change in unrealized appreciation . (332,249) (723,168) (360,673) 55,423
------------ ------------ ------------ ---------------
NET GAIN ............................. 243,269 1,122,768 952,764 196,514
------------ ------------ ------------ ---------------
NET INCREASE ........................... $1,249,417 $3,702,533 $2,489,142 $535,046
============ ============ ============ ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK
- ---------- ----------- ------------ ----------
<S> <C> <C> <C>
$530,375 $240,722 $1,132,775 $343,995
- ---------- ----------- ------------ ----------
33,540 15,213 72,060 21,844
13,556 6,218 27,289 7,658
5,295 2,529 10,194 2,745
12,494 13,539 12,433 12,359
2,328 1,085 4,880 1,471
476 156 1,122 328
1,050 416 1,474 673
1,635 1,576 2,981 3,167
2,133 2,328 3,549 2,205
- ---------- ----------- ------------ ----------
72,507 43,060 135,982 52,450
(1,050) (416) (1,474) (673)
- ---------- ----------- ------------ ----------
71,457 42,644 134,508 51,777
- ---------- ----------- ------------ ----------
458,918 198,078 998,267 292,218
- ---------- ----------- ------------ ----------
277,885 63,142 306,487 204,125
(82,011) (18,784) 241,152 (29,798)
- ---------- ----------- ------------ ----------
195,874 44,358 547,639 174,327
- ---------- ----------- ------------ ----------
$654,792 $242,436 $1,545,906 $466,545
========== =========== ============ ==========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA
- ---------- --------------
<S> <C>
$507,955 $1,401,230
- ---------- --------------
32,268 90,314
12,211 37,956
4,664 10,377
12,358 13,745
2,377 7,097
485 1,268
900 1,869
1,308 2,704
2,434 4,626
- ---------- --------------
69,005 169,956
(900) (1,867)
- ---------- --------------
68,105 168,089
- ---------- --------------
439,850 1,233,141
- ---------- --------------
174,501 235,431
(26,567) 444
- ---------- --------------
147,934 235,875
- ---------- --------------
$587,784 $1,469,016
========== ==============
</TABLE>
33
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA
--------------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997
- --------------------------------------------- -------------- ----------------- -------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ........................ $ 1,006,148 $ 2,189,141 $ 2,579,765 $ 5,412,749
Net realized gain (loss) ..................... 575,518 (109,978) 1,845,936 61,340
Net change in unrealized appreciation ....... (332,249) 271,359 (723,168) 1,234,202
-------------- ----------------- -------------- -----------------
NET INCREASE ............................... 1,249,417 2,350,522 3,702,533 6,708,291
-------------- ----------------- -------------- -----------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ........................ (1,006,894) (2,184,122) (2,580,689) (5,399,835)
Net realized gain ............................ -- -- -- --
-------------- ----------------- -------------- -----------------
TOTAL ...................................... (1,006,894) (2,184,122) (2,580,689) (5,399,835)
-------------- ----------------- -------------- -----------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales ...................... 1,115,411 2,336,830 4,731,174 7,477,913
Reinvestment of dividends and distributions . 494,956 1,079,937 1,180,844 2,501,877
Cost of shares repurchased ................... (3,355,766) (7,940,826) (6,707,228) (20,938,231)
-------------- ----------------- -------------- -----------------
NET INCREASE (DECREASE) .................... (1,745,399) (4,524,059) (795,210) (10,958,441)
-------------- ----------------- -------------- -----------------
TOTAL INCREASE (DECREASE) .................. (1,502,876) (4,357,659) 326,634 (9,649,985)
NET ASSETS:
Beginning of period .......................... 41,890,558 46,248,217 104,209,069 113,859,054
-------------- ----------------- -------------- -----------------
END OF PERIOD .............................. $40,387,682 $41,890,558 $104,535,703 $104,209,069
============== ================= ============== =================
UNDISTRIBUTED NET INVESTMENT INCOME ......... $ 10,585 $ 11,331 $ 27,943 $ 28,867
============== ================= ============== =================
SHARES ISSUED AND REPURCHASED:
Sold ......................................... 104,116 222,217 427,882 695,221
Reinvestment of dividends and distributions . 46,307 102,819 107,043 232,768
Repurchased .................................. (313,322) (756,888) (607,615) (1,952,197)
-------------- ----------------- -------------- -----------------
NET INCREASE (DECREASE) .................... (162,899) (431,852) (72,690) (1,024,208)
============== ================= ============== =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
<TABLE>
<CAPTION>
FLORIDA MASSACHUSETTS MICHIGAN
- --------------------------------- --------------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ 1,536,378 $ 3,374,873 $ 338,532 $ 724,955 $ 458,918 $ 986,199
1,313,437 7,528 141,091 33,483 277,885 (5,611)
(360,673) 537,792 55,423 179,559 (82,011) 274,701
- -------------- ----------------- -------------- ----------------- -------------- -----------------
2,489,142 3,920,193 535,046 937,997 654,792 1,255,289
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(1,538,038) (3,366,826) (338,974) (722,987) (459,232) (982,775)
-- -- (9,940) -- -- --
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(1,538,038) (3,366,826) (348,914) (722,987) (459,232) (982,775)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
3,553,620 8,867,050 808,589 1,064,313 1,054,662 1,770,777
541,880 1,179,653 200,335 419,440 259,258 545,749
(6,491,790) (16,053,675) (924,118) (3,158,448) (1,684,934) (3,939,781)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(2,396,290) (6,006,972) 84,806 (1,674,695) (371,014) (1,623,255)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(1,445,186) (5,453,605) 270,938 (1,459,685) (175,454) (1,350,741)
65,088,141 70,541,746 14,561,275 16,020,960 19,512,370 20,863,111
- -------------- ----------------- -------------- ----------------- -------------- -----------------
$63,642,955 $ 65,088,141 $14,832,213 $14,561,275 $19,336,916 $19,512,370
============== ================= ============== ================= ============== =================
$ 16,110 $ 17,770 $ 3,735 $ 4,177 $ 4,918 $ 5,232
============== ================= ============== ================= ============== =================
321,014 824,008 72,088 97,718 95,823 164,023
48,920 109,387 17,891 38,568 23,560 50,741
(585,119) (1,491,135) (82,251) (291,669) (152,813) (366,507)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(215,185) (557,740) 7,728 (155,383) (33,430) (151,743)
============== ================= ============== ================= ============== =================
</TABLE>
35
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS, continued
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY
--------------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997
- --------------------------------------------- -------------- ----------------- -------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ........................ $ 198,078 $ 427,503 $ 998,267 $ 2,163,401
Net realized gain (loss) ..................... 63,142 (2,079) 306,487 150,746
Net change in unrealized appreciation ....... (18,784) 75,733 241,152 554,643
-------------- ----------------- -------------- -----------------
NET INCREASE ............................... 242,436 501,157 1,545,906 2,868,790
-------------- ----------------- -------------- -----------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ........................ (198,594) (426,679) (998,901) (2,158,598)
Net realized gain ............................ -- -- -- --
-------------- ----------------- -------------- -----------------
TOTAL ...................................... (198,594) (426,679) (998,901) (2,158,598)
-------------- ----------------- -------------- -----------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales ...................... 180,304 341,882 2,119,219 3,174,698
Reinvestment of dividends and distributions . 111,778 238,618 565,447 1,208,830
Cost of shares repurchased ................... (530,976) (1,835,516) (3,741,863) (8,403,076)
-------------- ----------------- -------------- -----------------
NET INCREASE (DECREASE) .................... (238,894) (1,255,016) (1,057,197) (4,019,548)
-------------- ----------------- -------------- -----------------
TOTAL INCREASE (DECREASE) .................. (195,052) (1,180,538) (510,192) (3,309,356)
NET ASSETS:
Beginning of period .......................... 8,742,351 9,922,889 41,519,917 44,829,273
-------------- ----------------- -------------- -----------------
END OF PERIOD .............................. $8,547,299 $ 8,742,351 $41,009,725 $41,519,917
============== ================= ============== =================
UNDISTRIBUTED NET INVESTMENT INCOME ......... $ 2,131 $ 2,647 $ 10,588 $ 11,222
============== ================= ============== =================
SHARES ISSUED AND REPURCHASED:
Sold ......................................... 16,760 32,070 192,628 298,058
Reinvestment of dividends and distributions . 10,404 22,587 51,465 113,233
Repurchased .................................. (49,348) (173,686) (340,374) (786,812)
-------------- ----------------- -------------- -----------------
NET INCREASE (DECREASE) .................... (22,184) (119,029) (96,281) (375,521)
============== ================= ============== =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
<TABLE>
<CAPTION>
NEW YORK OHIO PENNSYLVANIA
- --------------------------------- --------------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ 292,218 $ 627,325 $ 439,850 $ 987,729 $ 1,233,141 $ 2,231,381
204,125 10,788 174,501 (12,075) 235,431 8,207
(29,798) 215,377 (26,567) 291,150 444 509,480
- -------------- ----------------- -------------- ----------------- -------------- -----------------
466,545 853,490 587,784 1,266,804 1,469,016 2,749,068
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(292,299) (626,041) (443,035) (985,654) (1,230,749) (2,226,117)
-- -- -- -- (8,206) (98,622)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(292,299) (626,041) (443,035) (985,654) (1,238,955) (2,324,739)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
397,351 500,333 1,032,541 1,904,978 11,437,118 2,548,744
155,638 327,002 244,856 559,793 746,490 1,234,155
(900,631) (2,488,429) (1,700,484) (5,477,168) (2,669,381) (7,206,475)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(347,642) (1,661,094) (423,087) (3,012,397) 9,514,227 (3,423,576)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(173,396) (1,433,645) (278,338) (2,731,247) 9,744,288 (2,999,247)
12,586,446 14,020,091 18,476,220 21,207,467 44,056,127 47,055,374
- -------------- ----------------- -------------- ----------------- -------------- -----------------
$12,413,050 $12,586,446 $18,197,882 $18,476,220 $53,800,415 $44,056,127
============== ================= ============== ================= ============== =================
$ 3,138 $ 3,219 $ 4,730 $ 7,915 $ 14,155 $ 11,763
============== ================= ============== ================= ============== =================
35,360 46,105 93,634 177,550 1,029,442 236,669
13,877 30,087 22,259 52,107 67,698 114,454
(80,323) (230,243) (154,609) (508,953) (241,258) (670,418)
- -------------- ----------------- -------------- ----------------- -------------- -----------------
(31,086) (154,051) (38,716) (279,296) 855,882 (319,295)
============== ================= ============== ================= ============== =================
</TABLE>
37
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1998 (unaudited)
1. Organization and Accounting Policies
Morgan Stanley Dean Witter Multi-State Municipal Series Trust (the "Fund") is
registered under the Investment Company Act of 1940, as amended (the "Act"),
as a non-diversified, open-end management investment company. The investment
objective of each Series is to provide a high level of current income exempt
from both Federal and the designated state income taxes consistent with
preservation of capital.
The Fund, organized on October 29, 1990, as a Massachusetts business trust,
is comprised of ten separate Series (the "Series"): the Arizona Series, the
California Series, the Florida Series, the Massachusetts Series, the Michigan
Series, the Minnesota Series, the New Jersey Series, the New York Series, the
Ohio Series and the Pennsylvania Series. Each of the Series commenced
operations on January 15, 1991, with the exception of the Arizona Series
which commenced operations on April 30, 1991.
Effective June 22, 1998, the following entities have changed their name:
<TABLE>
<CAPTION>
OLD NAME NEW NAME
-------------------------------------- --------------------------------------------------
<S> <C>
Dean Witter Multi-State Municipal Morgan Stanley Dean Witter Multi-State Municipal
Series Trust Series Trust
Dean Witter InterCapital Inc. Morgan Stanley Dean Witter Advisors Inc.
Morgan Stanley Dean Witter Distributors Inc.
Dean Witter Distributors Inc.
</TABLE>
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. Valuation of Investments-- Portfolio securities are valued by an outside
independent pricing service approved by the Fund's Trustees. The pricing
service has informed the Fund that in valuing the portfolio securities, it
uses both a computerized matrix of tax-exempt securities and evaluations by
its staff, in each case based on information concerning market transactions
and quotations from dealers which reflect the bid side of the market each
day. The portfolio securities are thus valued by reference to a combination
of transactions and quotations for the same or other securities believed to
be comparable in quality, coupon, maturity, type of issue, call provisions,
trading characteristics and other features deemed to be relevant. Short-term
debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-market basis until sixty days prior to
maturity and thereafter at amortized cost based on their value on the 61st
day. Short-term debt securities having a maturity date of sixty days or less
at the time of purchase are valued at amortized cost.
38
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1998 (unaudited) continued
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. Discounts are accreted and premiums are amortized over the life of
the respective securities. Interest income is accrued daily.
C. Federal Income Tax Status-- It is the Fund's policy to comply
individually for each Series with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of
its taxable and nontaxable income to its shareholders. Accordingly, no
federal income tax provision is required.
D. Dividends and Distributions to Shareholders-- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their 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.
E. Expenses-- Direct expenses are charged to the respective Series and
general corporate expenses are allocated on the basis of relative net assets
or equally among the Series.
2. Investment Management Agreement
Pursuant to an Investment Management Agreement, each Series of the Fund pays
Morgan Stanley Dean Witter Advisors Inc. (the "Investment Manager") a
management fee, accrued daily and payable monthly, by applying the annual
rate of 0.35% to the daily net assets of each Series determined as of the
close of each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes office space and facilities, equipment, clerical,
bookkeeping and certain legal services, and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services,
heat, light, power and other utilities provided to the Fund.
39
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1998 (unaudited) continued
3. Plan of Distribution
Morgan Stanley Dean Witter Distributors Inc. (the "Distributor"), an
affiliate of the Investment Manager, is the distributor of the Fund's shares
and, in accordance with a Plan of Distribution (the "Plan") pursuant to Rule
12b-1 under the Act, finances certain expenses in connection with the
distribution of shares of the Fund.
Under the Plan, the expenses of certain activities and services provided by
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 incurred in connection with the distribution of the Fund's shares,
are reimbursed.
Reimbursements for these expenses will be made in monthly payments by the
Fund to the Distributor, which will in no event exceed an amount equal to a
payment at the annual rate of 0.15% of the Fund's average daily net assets
during the month. Expenses incurred by the Distributor pursuant to the Plan
in any fiscal year will not be reimbursed by the Fund through payments
accrued in any subsequent fiscal year. For the six months ended May 31, 1998,
the distribution fees were accrued at the following annual rates:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------------- -------------- ------------ ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Annual Rate..... 0.14% 0.14% 0.13% 0.14% 0.14%
============= ============== ============ ================= ================
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------------- -------------- ------------ ----------------- ----------------
0.14% 0.13% 0.12% 0.13% 0.15%
============= ============== ============ ================= ================
</TABLE>
For the six months ended May 31, 1998, the Distributor has informed the Fund
that commissions from the sale of the Fund's shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
----------- ------------ ---------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Commissions .. $35,366 $125,191 $108,706 $22,523 $32,860
=========== ============ ========== =============== ==============
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------------- --------------
$4,193 $68,008 $8,749 $36,315 $89,320
=========== ============ ========== =============== ==============
</TABLE>
Such commissions are not an expense of the Fund; they are deducted from the
proceeds of the sale of the shares of beneficial interest.
40
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1998 (unaudited) continued
4. Security Transactions and Transactions with Affiliates
The cost of purchases and proceeds from the sales of portfolio securities,
excluding short-term investments, for the six months ended May 31, 1998 were
as follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------------ ------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases .. $6,840,560 $17,514,443 $10,587,050 $2,389,119 $3,754,178
============ ============= ============= =============== =============
Sales........ $9,267,524 $18,178,513 $13,510,248 $3,217,968 $4,326,162
============ ============= ============= =============== =============
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------------ ------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Purchases .. $ 685,234 $4,336,210 $1,330,475 $3,187,260 $15,160,135
============ ============= ============= ============ ==============
Sales........ $ 575,587 $5,642,512 $1,667,105 $2,710,067 $7,716,310
============ ============= ============= ============ ==============
</TABLE>
The Fund has an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement.
Benefits under this plan are based on years of service and compensation
during the last five years of service. Aggregate pension costs for the six
months ended May 31, 1998 included in Trustees' fees and expenses in the
Statement of Operations and the accrued pension liability included in accrued
expenses in the Statement of Assets and Liabilities for each of the
respective Series were as follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
--------- ------------ --------- --------------- ----------
<S> <C> <C> <C> <C> <C>
Aggregate Pension
Costs.................. $ 282 $ 732 $ 457 $ 102 $ 134
========= ============ ========= =============== ==========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------------- -------------- ------------ ---------- ----------------
<S> <C> <C> <C> <C> <C>
$ 67 $ 290 $ 91 $ 131 $ 72
============= ============== ============ ========== ================
</TABLE>
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
--------- ------------ --------- --------------- ----------
<S> <C> <C> <C> <C> <C>
Accrued Pension Liability $4,648 $9,481 $5,847 $1,327 $1,705
========= ============ ========= =============== ==========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C> <C>
$ 879 $3,738 $1,155 $1,858 $3,859
=========== ============ ========== ======== ==============
</TABLE>
41
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1998 (unaudited) continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At May 31, 1998, each of the
Series had transfer agent fees and expenses payable as follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
--------- ------------ --------- --------------- ----------
<S> <C> <C> <C> <C> <C>
Transfer Agent Fees and Expenses Payable . $ 295 $1,218 $ 337 $ 164 $ 342
========= ============ ========= =============== ==========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C> <C>
$ 388 $ 385 $ 249 $ 164 $2,547
=========== ============ ========== ======== ==============
</TABLE>
5. Federal Income Tax Status
At November 30, 1997, the following Series had an approximate net capital
loss carryover to offset future capital gains to the extent provided by
regulations:
<TABLE>
<CAPTION>
AVAILABLE THROUGH NOVEMBER
30, 2002 2003 2004 2005 TOTAL
- ----------------------------- --------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Arizona ...................... $ 6,700 -- -- $110,000 $116,700
California ................... 76,900 $247,100 $52,900 74,500 451,400
Florida ...................... 35,000 -- -- 44,700 79,700
Michigan ..................... 8,400 -- -- 5,600 14,000
Minnesota .................... 32,000 24,300 20,300 4,800 81,400
New Jersey ................... -- 5,200 -- -- 5,200
New York ..................... -- -- 13,300 -- 13,300
Ohio ......................... 158,100 -- -- 12,100 170,200
</TABLE>
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Florida Series incurred and will elect to defer net capital
losses during fiscal 1997 of $1,000.
42
<PAGE>
(This page has been left blank intentionally.)
43
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
NET ASSET TOTAL
YEAR VALUE NET NET REALIZED TOTAL FROM DISTRIBUTIONS DIVIDENDS
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO TO AND
NOVEMBER 30 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- ------------- ----------- ------------ -------------- ------------ -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
ARIZONA SERIES
1993 $10.18 $0.58 $ 0.56 $ 1.14 $(0.58) $(0.02) $(0.60)
1994 10.72 0.55 (1.29) (0.74) (0.55) (0.01) (0.56)
1995 9.42 0.54 1.23 1.77 (0.54) -- (0.54)
1996 10.65 0.54 (0.06) 0.48 (0.54) -- (0.54)
1997 10.59 0.53 0.05 0.58 (0.53) -- (0.53)
1998* 10.64 0.26 0.06 0.32 (0.26) -- (0.26)
CALIFORNIA SERIES
1993 10.32 0.61 0.68 1.29 (0.61) -- (0.61)
1994 11.00 0.58 (1.48) (0.90) (0.58) (0.14) (0.72)
1995 9.38 0.56 1.29 1.85 (0.56) -- (0.56)
1996 10.67 0.56 0.14 0.70 (0.56) -- (0.56)
1997 10.81 0.55 0.15 0.70 (0.55) -- (0.55)
1998* 10.96 0.27 0.11 0.38 (0.27) -- (0.27)
FLORIDA SERIES
1993 10.29 0.59 0.64 1.23 (0.59) -- (0.59)
1994 10.93 0.56 (1.33) (0.77) (0.56) -- (0.56)
1995 9.60 0.56 1.28 1.84 (0.56) -- (0.56)
1996 10.88 0.55 (0.02) 0.53 (0.55) -- (0.55)
1997 10.86 0.54 0.11 0.65 (0.54) -- (0.54)
1998* 10.97 0.27 0.16 0.43 (0.27) -- (0.27)
MASSACHUSETTS SERIES
1993 10.36 0.60 0.72 1.32 (0.60) -- (0.60)
1994 11.08 0.56 (1.38) (0.82) (0.56) (0.10) (0.66)
1995 9.60 0.57 1.37 1.94 (0.57) -- (0.57)
1996 10.97 0.57 (0.03) 0.54 (0.57) (0.02) (0.59)
1997 10.92 0.53 0.18 0.71 (0.53) -- (0.53)
1998* 11.10 0.26 0.15 0.41 (0.26) (0.01) (0.27)
MICHIGAN SERIES
1993 10.41 0.61 0.64 1.25 (0.61) -- (0.61)
1994 11.05 0.56 (1.41) (0.85) (0.56) (0.18) (0.74)
1995 9.46 0.57 1.35 1.92 (0.57) -- (0.57)
1996 10.81 0.56 (0.03) 0.53 (0.56) -- (0.56)
1997 10.78 0.53 0.16 0.69 (0.53) -- (0.53)
1998* 10.94 0.26 0.11 0.37 (0.26) -- (0.26)
</TABLE>
- ------------
* For the six months ended May 31, 1998 (unaudited).
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS ASSETS
(AFTER EXPENSES WERE (BEFORE EXPENSES WERE
ASSUMED) ASSUMED)
-------------------------- --------------------------
NET ASSET NET ASSETS
VALUE TOTAL END OF NET NET PORTFOLIO
END OF INVESTMENT PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- ----------- ------------ ------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.72 11.42% $ 59,877 0.48% 5.40 % 0.65% 5.22% 5%
9.42 (7.16) 47,628 0.62 5.33 0.63 5.32 11
10.65 19.21 50,290 0.65 (3) 5.33 0.65 (3) 5.33 6
10.59 4.63 46,248 0.65 (3) 5.12 0.65 (3) 5.12 9
10.64 5.64 41,891 0.66 (3) 5.04 0.66 (3) 5.04 2
10.70 3.06 (1) 40,388 0.65 (2)(3) 4.89 (2) 0.65 (2)(3) 4.89 (2) 17 (1)
11.00 12.77 139,308 0.48 5.57 0.60 5.45 11
9.38 (8.65) 112,450 0.58 5.59 0.59 5.58 12
10.67 20.15 117,769 0.60 (3) 5.50 0.60 (3) 5.50 5
10.81 6.76 113,859 0.59 5.28 0.59 5.28 19
10.96 6.55 104,209 0.59 5.08 0.59 5.08 17
11.07 3.64 (1) 104,536 0.59 (2)(3) 4.94 (2) 0.59 (2)(3) 4.94 (2) 17 (1)
10.93 12.20 84,494 0.48 5.39 0.63 5.23 3
9.60 (7.29) 71,458 0.61 5.34 0.62 5.33 3
10.88 19.54 74,058 0.63 (3) 5.34 0.63 (3) 5.34 8
10.86 5.03 70,542 0.62 (3) 5.13 0.62 (3) 5.13 25
10.97 6.10 65,088 0.62 5.02 0.62 5.02 7
11.13 3.93 (1) 63,643 0.61 (2)(3) 4.78 (2) 0.61 (2)(3) 4.78 (2) 17 (1)
11.08 13.06 18,344 0.48 5.47 0.84 5.10 12
9.60 (7.71) 15,507 0.50 5.35 0.78 5.07 10
10.97 20.58 16,954 0.50 (3) 5.39 0.79 (3) 5.11 7
10.92 5.07 16,021 0.50 (3) 5.23 0.82 (3) 4.91 11
11.10 6.68 14,561 0.79 (3) 4.85 0.81 (3) 4.83 10
11.24 3.72 (1) 14,832 0.80 (2)(3) 4.63 (2) 0.80 (2)(3) 4.63 (2) 17 (1)
11.05 12.28 22,083 0.48 5.53 0.80 5.20 15
9.46 (8.07) 19,831 0.50 5.44 0.75 5.19 9
10.81 20.69 21,673 0.50 (3) 5.49 0.77 (3) 5.22 22
10.78 5.09 20,863 0.50 (3) 5.27 0.76 (3) 5.01 5
10.94 6.52 19,512 0.72 (3) 4.95 0.74 (3) 4.93 3
11.05 3.47 (1) 19,337 0.76 (2)(3) 4.79 (2) 0.76 (2)(3) 4.79 (2) 21 (1)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
NET ASSET TOTAL
YEAR VALUE NET NET REALIZED TOTAL FROM DISTRIBUTIONS DIVIDENDS
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO TO AND
NOVEMBER 30 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- ------------- ----------- ------------ -------------- ------------ -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
MINNESOTA SERIES
1993 $10.11 $0.58 $ 0.67 $ 1.25 $(0.58) -- $(0.58)
1994 10.78 0.55 (1.42) (0.87) (0.55) $(0.08) (0.63)
1995 9.28 0.54 1.33 1.87 (0.54) -- (0.54)
1996 10.61 0.54 (0.01) 0.53 (0.54) -- (0.54)
1997 10.60 0.49 0.10 0.59 (0.49) -- (0.49)
1998* 10.70 0.24 0.05 0.29 (0.24) -- (0.24)
NEW JERSEY SERIES
1993 10.35 0.60 0.62 1.22 (0.60) (0.03) (0.63)
1994 10.94 0.55 (1.39) (0.84) (0.55) (0.08) (0.63)
1995 9.47 0.56 1.26 1.82 (0.56) -- (0.56)
1996 10.73 0.55 (0.03) 0.52 (0.55) -- (0.55)
1997 10.70 0.53 0.18 0.71 (0.53) -- (0.53)
1998* 10.88 0.27 0.15 0.42 (0.27) -- (0.27)
NEW YORK SERIES
1993 10.34 0.62 0.69 1.31 (0.62) -- (0.62)
1994 11.03 0.57 (1.52) (0.95) (0.57) (0.05) (0.62)
1995 9.46 0.56 1.42 1.98 (0.56) -- (0.56)
1996 10.88 0.56 0.02 0.58 (0.56) -- (0.56)
1997 10.90 0.53 0.21 0.74 (0.53) -- (0.53)
1998* 11.11 0.26 0.16 0.42 (0.26) -- (0.26)
OHIO SERIES
1993 10.25 0.60 0.72 1.32 (0.60) -- (0.60)
1994 10.97 0.55 (1.43) (0.88) (0.55) (0.12) (0.67)
1995 9.42 0.56 1.38 1.94 (0.56) -- (0.56)
1996 10.80 0.55 (0.03) 0.52 (0.55) -- (0.55)
1997 10.77 0.53 0.17 0.70 (0.53) -- (0.53)
1998* 10.94 0.26 0.09 0.35 (0.26) -- (0.26)
PENNSYLVANIA SERIES
1993 10.34 0.61 0.67 1.28 (0.61) -- (0.61)
1994 11.01 0.56 (1.39) (0.83) (0.56) (0.06) (0.62)
1995 9.56 0.55 1.29 1.84 (0.55) -- (0.55)
1996 10.85 0.55 -- 0.55 (0.55) -- (0.55)
1997 10.85 0.54 0.14 0.68 (0.54) (0.02) (0.56)
1998* 10.97 0.26 0.07 0.33 (0.26) -- (4) (0.26)
</TABLE>
- ------------
* For the six months ended May 31, 1998 (unaudited).
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
(4) Excludes capital gain distribution of $0.002.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS ASSETS
(AFTER EXPENSES WERE (BEFORE EXPENSES WERE
ASSUMED) ASSUMED)
-------------------------- --------------------------
NET ASSET NET ASSETS
VALUE TOTAL END OF NET NET PORTFOLIO
END OF INVESTMENT PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- ----------- ------------ ------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.78 12.64% $11,538 0.48% 5.39% 1.04% 4.83% 8%
9.28 (8.42) 9,793 0.50 5.41 0.91 5.00 14
10.61 20.60 11,230 0.50 (3) 5.35 0.98 (3) 4.88 3
10.60 5.21 9,923 0.50 (3) 5.21 0.96 (3) 4.75 5
10.70 5.76 8,742 0.94 (3) 4.68 0.97 (3) 4.65 --
10.75 2.79 (1) 8,547 0.99 (2)(3) 4.56 (2) 0.99 (2)(3) 4.56 (2) 7 (1)
10.94 12.03 54,499 0.48 5.41 0.69 5.20 7
9.47 (7.96) 45,497 0.64 5.38 0.65 5.37 6
10.73 19.60 47,889 0.67 (3) 5.42 0.67 (3) 5.42 14
10.70 4.93 44,829 0.66 (3) 5.23 0.66 (3) 5.23 5
10.88 6.99 41,520 0.66 5.02 0.66 5.02 14
11.03 3.78 (1) 41,010 0.66 (2)(3) 4.85 (2) 0.66 (2)(3) 4.85 (2) 11 (1)
11.03 12.91 15,955 0.48 5.61 0.88 5.21 11
9.46 (8.96) 14,522 0.50 5.48 0.82 5.16 14
10.88 21.40 14,388 0.50 (3) 5.43 0.85 (3) 5.09 24
10.90 5.46 14,020 0.50 (3) 5.25 0.84 (3) 4.91 22
11.11 7.06 12,586 0.82 (3) 4.84 0.84 (3) 4.82 4
11.27 3.85 (1) 12,413 0.84 (2)(3) 4.68 (2) 0.84 (2)(3) 4.68 (2) 11 (1)
10.97 13.19 24,849 0.48 5.45 0.78 5.14 20
9.42 (8.34) 20,693 0.50 5.31 0.71 5.10 18
10.80 21.02 23,104 0.50 (3) 5.42 0.77 (3) 5.16 19
10.77 5.04 21,207 0.50 (3) 5.23 0.75 (3) 4.98 32
10.94 6.67 18,476 0.73 (3) 4.90 0.74 (3) 4.89 5
11.03 3.19 (1) 18,198 0.75 (2)(3) 4.77 (2) 0.75 (2)(3) 4.77 (2) 16 (1)
11.01 12.64 53,378 0.48 5.54 0.68 5.33 5
9.56 (7.84) 47,557 0.64 5.37 0.66 5.35 19
10.85 19.65 53,935 0.66 (3) 5.29 0.66 (3) 5.29 8
10.85 5.27 47,055 0.65 (3) 5.17 0.65 (3) 5.17 --
10.97 6.53 44,056 0.66 5.01 0.66 5.01 8
11.04 3.10 (1) 53,800 0.66 (2)(3) 4.77 (2) 0.66 (2)(3) 4.77 (2) 16 (1)
</TABLE>
47
<PAGE>
TRUSTEES
- ----------------------------
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
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
Barry Fink
Vice President, Secretary and General Counsel
James F. Willison
Vice President
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
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
Multi-State Municipal
Series Trust
[LOGO]
Semiannual Report
May 31, 1998
