<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE Two World Trade Center,
MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS November 30, 1998 New York, New York 10048
DEAR SHAREHOLDER:
We are pleased to present the annual report of Morgan Stanley Dean Witter
Multi-State Series Trust for the fiscal year ended November 30, 1998.
Since our last report six months ago, global financial turmoil, including the
Russian currency crisis, continued to affect the securities markets. The
resulting flight-to-quality bond rally pushed U.S. Treasury bond yields to
30-year lows. Municipal bond yields declined but lagged the downward trend of
Treasury yields.
The deflationary impact of the international financial crisis began to temper
U.S. economic growth prior to the summer's tumultuous market activity. Lower
commodity prices, cheaper imports and improved productivity offset the
potential inflationary impact of strong domestic employment. With inflation
held in check, the Federal Reserve Board provided liquidity to the markets by
lowering short-term interest rates. Between the end of September and the middle
of November, the Federal Reserve Open Market Committee has cut the
federal-funds rate 75 basis points from 5.50 percent to 4.75 percent in three
separate moves.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[LINE CHART]
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%
06/30/98 5.20 5.65 92.04%
07/31/98 5.18 5.71 90.72%
08/31/98 5.03 5.27 95.45%
09/30/98 4.95 5.00 99.00%
10/31/98 5.05 5.16 97.87%
11/30/98 5.00 5.06 98.81%
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS November 30, 1998, continued
MUNICIPAL MARKET CONDITIONS
At the end of November, the long-term insured municipal bond index yield stood
at 5.00 percent. This index yield declined 30 basis points from 5.30 percent
over the last 12 months. In contrast, the 30-year U.S. Treasury bond yield fell
100 basis points during the same period.
As municipals lagged the rally in Treasuries, the ratio of municipal yields to
Treasury yields rose sharply to 99 percent. A rising ratio means that the
attractiveness of municipals relative to Treasuries has improved. The rise in
this ratio is similar to the jump witnessed in 1986 when a radical legislative
proposal threatened the favorable tax advantage of municipal bonds.
The overall decline in interest rates led to a substantial increase in
new-issue municipal volume. Municipal issuance was on a pace to challenge
1993's record of $292 billion. Total municipal volume through November of $255
billion was ahead 28 percent versus the same period last year. Half the
underwriting volume was enhanced with bond insurance. Refundings represented 29
percent of total new issuance.
PORTFOLIO STRUCTURE
The average duration (a measure of sensitivity to interest rate changes) of the
10 single-state portfolios that comprise Morgan Stanley Dean Witter Multi-State
Municipal Series Trust increased from 6 to 7 years, during the past 12 months.
This was primarily accomplished by selling refunded and other high coupon bonds
to purchase new issues. Weighted average bond maturities ranged from 17 to 20
years and average call protection was 7 years. Average credit quality remained
double "A" or better.
For your convenience, we have summarized details regarding the various State
series on the following pages. Here you will find information on credit
quality, maturity, call protection, distributions, duration and performance.
The accompanying charts illustrate the growth of a $10,000 investment in each
Series from inception through the fiscal year ended November 30, 1998, versus a
similar hypothetical investment in either the Lehman Brothers Municipal Bond
Index or the relevant Lipper Analytical Services, Inc. Municipal Debt Funds
Index.
LOOKING AHEAD
Global economic conditions have kept inflationary pressures under control and
have contributed to lower interest rates. The fixed income markets appear
concerned about the risk of inflation as countries seek to stimulate economic
growth. However, the ability of the Fed to maintain stability by responding
with appropriate monetary policy is encouraging. With the municipal
relationship to Treasuries more favorable than it has been in 10 years, the
outlook for municipal bonds is positive.
2
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS November 30, 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 - ARIZONA
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
April 30, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,143 $10,594 $10,573
November 30, 1992 $11,268 $11,657 $11,703
November 30, 1993 $12,554 $12,949 $13,061
November 30, 1994 $11,654 $12,269 $12,161
November 30, 1995 $13,894 $14,587 $14,535
November 30, 1996 $14,538 $15,445 $15,244
November 30, 1997 $15,358 $16,552 $16,238
November 30, 1998 $16,367(3) $17,836 $17,357
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
6.56(1) 5.45(1) 7.29(1)
2.30(2) 4.59(2) 6.71(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper AZ Municipal Debt Funds Average tracks the performance of the
funds that limit assets to those securities which are exempt from taxation
in AZ state (double tax-exempt) or a specified city in AZ (triple tax-
exempt) as reported by Lipper Analytical Services.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 6.89%
4
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - CALIFORNIA
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,588 $10,833 $10,784
November 30, 1992 $11,671 $11,919 $11,772
November 30, 1993 $13,162 $13,241 $13,186
November 30, 1994 $12,022 $12,545 $12,256
November 30, 1995 $14,445 $14,916 $14,583
November 30, 1996 $15,422 $15,793 $15,434
November 30, 1997 $16,433 $16,925 $16,533
November 30, 1998 $17,679(3) $18,175 $17,818
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.58(1) 6.08(1) 8.06(1)
3.28(2) 5.22(2) 7.50(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper CA Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
CA Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 30 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 7.78%
5
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - FLORIDA
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,449 $10,833 $10,833
November 30, 1992 $11,589 $11,919 $11,941
November 30, 1993 $13,002 $13,241 $13,402
November 30, 1994 $12,055 $12,545 $12,327
November 30, 1995 $14,411 $14,916 $14,786
November 30, 1996 $15,135 $15,793 $15,496
November 30, 1997 $16,059 $16,925 $16,508
November 30, 1998 $17,275(3) $18,175 $17,652
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.58(1) 5.85(1) 7.75(1)
3.27(2) 4.99(2) 7.19(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper FL Municipal Debt Funds Average tracks the performance of the
funds that limit assets to those securities which are exempt from taxation
in FL state (double tax-exempt) or a specified city in FL (triple tax-
exempt) as reported by Lipper Analytical Services.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 6.93%
6
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - MASSACHUSETTS
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,548 $10,833 $10,857
November 30, 1992 $11,727 $11,919 $11,985
November 30, 1993 $13,259 $13,241 $13,394
November 30, 1994 $12,236 $12,545 $12,574
November 30, 1995 $14,755 $14,916 $14,861
November 30, 1996 $15,503 $15,793 $15,619
November 30, 1997 $16,538 $16,925 $16,698
November 30, 1998 $17,701(3) $18,175 $17,875
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.03(1) 5.95(1) 8.08(1)
2.75(2) 5.09(2) 7.52(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper MA Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
MA Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 7.05%
7
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - MICHIGAN
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,516 $10,833 $10,795
November 30, 1992 $11,754 $11,919 $11,902
November 30, 1993 $13,197 $13,241 $13,237
November 30, 1994 $12,132 $12,545 $12,473
November 30, 1995 $14,642 $14,916 $14,636
November 30, 1996 $15,387 $15,793 $15,349
November 30, 1997 $16,389 $16,925 $16,319
November 30, 1998 $17,574(3) $18,175 $17,426
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.23(1) 5.90(1) 7.98(1)
2.94(2) 5.03(2) 7.42(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper MI Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
MI Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 6.79%
8
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - MINNESOTA
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,312 $10,833 $10,707
November 30, 1992 $11,334 $11,919 $11,696
November 30, 1993 $12,767 $13,241 $13,073
November 30, 1994 $11,692 $12,545 $12,308
November 30, 1995 $14,100 $14,916 $14,465
November 30, 1996 $14,835 $15,793 $15,145
November 30, 1997 $15,689 $16,925 $16,120
November 30, 1998 $16,594(3) $18,175 $17,231
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
5.77(1) 5.38(1) 7.20(1)
1.54(2) 4.53(2) 6.64(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper MN Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
MN Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 6.89%
9
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - NEW JERSEY
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,521 $10,833 $10,811
November 30, 1992 $11,714 $11,919 $11,868
November 30, 1993 $13,123 $13,241 $13,270
November 30, 1994 $12,079 $12,545 $12,411
November 30, 1995 $14,445 $14,916 $14,623
November 30, 1996 $15,158 $15,793 $15,324
November 30, 1997 $16,218 $16,925 $16,337
November 30, 1998 $17,432(3) $18,175 $17,506
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.49(1) 5.84(1) 7.87(1)
3.19(2) 4.98(2) 7.31(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper NJ Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
NJ Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 7.16%
10
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - NEW YORK
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,630 $10,833 $10,979
November 30, 1992 $11,730 $11,919 $12,144
November 30, 1993 $13,244 $13,241 $13,578
November 30, 1994 $12,058 $12,545 $12,495
November 30, 1995 $14,638 $14,916 $14,887
November 30, 1996 $15,437 $15,793 $15,580
November 30, 1997 $16,526 $16,925 $16,648
November 30, 1998 $17,766(3) $18,175 $17,874
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
7.50(1) 6.05(1) 8.13(1)
3.20(2) 5.19(2) 7.57(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper NY Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
NY Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 7.37%
11
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - OHIO
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,402 $10,833 $10,786
November 30, 1992 $11,558 $11,919 $11,868
November 30, 1993 $13,083 $13,241 $13,234
November 30, 1994 $11,991 $12,545 $12,515
November 30, 1995 $14,511 $14,916 $14,717
November 30, 1996 $15,243 $15,793 $15,486
November 30, 1997 $16,260 $16,925 $16,474
November 30, 1998 $17,371(3) $18,175 $17,634
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
6.84(1) 5.83(1) 7.82(1)
2.57(2) 4.97(2) 7.27(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper OH Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
OH Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 7.04%
12
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST - PENNSYLVANIA
FUND PERFORMANCE NOVEMBER 30, 1998
GROWTH OF $10,000
Date Total LEHMAN Lipper
- --------------------------------------------------------------------------------
January 15, 1991 $ 9,600 $10,000 $10,000
November 30, 1991 $10,442 $10,833 $10,875
November 30, 1992 $11,640 $11,919 $12,014
November 30, 1993 $13,112 $13,241 $13,425
November 30, 1994 $12,084 $12,545 $12,699
November 30, 1995 $14,458 $14,916 $14,980
November 30, 1996 $15,220 $15,793 $15,754
November 30, 1997 $16,212 $16,925 $16,803
November 30, 1998 $17,283(3) $18,175 $17,875
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 Year 5 Years 10 Years Since Inception
- --------------------------------------------------------------------------------
6.60(1) 5.68(1) 7.75(1)
2.34(2) 4.82(2) 7.20(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--- Fund --- Lehman(4) --- Lipper (5)
- --------------------------------------------------------------------------------
Past performance is not predictive of future returns
- --------------------------------------------------------------------------------
1.) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
2.) Figure shown assumes reinvestment of all distribution and the deduction
of the maximum applicable front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
3.) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1998.
4.) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investor Service, Inc.
or Standard & Poor's Corp., respectively. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
5.) The Lipper PA Municipal Debt Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
PA Municipal Debt Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and should
not be considered an investment. There are currently 10 funds represented
in this Index.
One Yr Return
- ------------------
Lehman Lipper
- ------ ------
7.76% 6.38%
13
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
PORTFOLIO SUMMARY November 30, 1998 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
SERIES SERIES SERIES SERIES
----------- ------------ ----------- --------------
<S> <C> <C> <C> <C>
Credit Ratings (1):
Aaa or AAA .................................. 46% 57% 75% 58%
Aa or AA .................................... 33 17 12 20
A or A ...................................... 19 20 6 7
Baa or BBB .................................. 2 6 7 15
Non Rated (2) ............................... -- -- -- --
Long-Term Portfolio Distribution by Call Date
1999 ...................................... -- -- 3% --
2000 ...................................... 5% -- 1 4%
2001 ...................................... 9 14% 10 6
2002 ...................................... 28 21 28 15
2003 ...................................... 5 14 6 18
2004 ...................................... 11 -- -- 4
2005 ...................................... 5 -- 5 8
2006 ...................................... -- 8 6 6
2007 ...................................... -- 4 6 3
2008 ...................................... 18 20 12 21
2009+ ..................................... 19 19 23 15
Average Weighted (3):
Maturity .................................. 18 Years 20 Years 19 Years 18 Years
Call Protection ........................... 7 Years 8 Years 8 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
November 30, 1998 ......................... $ 10.81 $ 11.22 $ 11.25 $ 11.33
Distributions (4) ........................... $ 0.51 $ 0.54 $ 0.52 $ 0.53
Total Return (5):
12 months ended 11/30/98 .................. 6.56% 7.58% 7.58% 7.03%
</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 short-term securities.
(4) Includes all income dividends and capital gains distributions, if any,
paid by each Series for the 12 months ended November 30, 1998.
(5) 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 and do not reflect the deduction of
sales load.
14
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
SERIES SERIES SERIES SERIES SERIES SERIES
- ------------- ----------- ------------ ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
82% 38% 63% 48% 66% 72%
15 34 18 11 17 13
3 24 7 32 12 12
-- 4 9 9 5 2
-- -- 3 -- -- 1
-- -- 5% -- 3% --
-- 3% -- -- -- --
7% 5 11 -- 13 13%
30 24 26 14% 27 26
9 36 7 9 2 12
-- -- -- 5 -- --
16 -- 12 14 15 4
5 6 7 23 -- 4
-- -- 3 5 6 3
30 18 26 16 23 28
3 8 3 14 11 10
20 Years 17 Years 18 Years 18 Years 19 Years 20 Years
6 Years 6 Years 6 Years 7 Years 7 Years 7 Years
7 Years 6 Years 6 Years 7 Years 7 Years 7 Years
$10.94 $ 10.70 $ 10.88 $ 11.11 $ 10.94 $ 10.97
$11.19 $ 10.82 $ 11.15 $ 11.41 $ 11.15 $ 11.15
$ 0.51 $ 0.49 $ 0.53 $ 0.52 $ 0.52 $ 0.53
7.23% 5.77% 7.49% 7.50% 6.84% 6.60%
</TABLE>
15
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
ARIZONA TAX-EXEMPT MUNICIPAL BONDS (93.5%)
General Obligation (14.7%)
$ 1,000 Paradise Valley Unified School District #69, Ser B 1995 (MBIA) ............ 5.25 % 07/01/15 $ 1,032,780
Phoenix,
1,000 Refg Ser 1992 ............................................................. 6.375 07/01/13 1,096,800
1,000 Ser 1998 .................................................................. 4.50 07/01/18 957,250
Tucson,
750 Refg Ser 1995 (FGIC) ...................................................... 5.50 07/01/12 798,788
1,000 Refg Ser 1998 ............................................................. 5.50 07/01/18 1,088,190
1,000 Puerto Rico, Public Improvement Ser 1998 (MBIA) ........................... 6.00 07/01/16 1,155,660
-------- -----------
5,750 6,129,468
-------- -----------
Educational Facilities Revenue (5.1%)
1,000 Arizona Board of Regents, Arizona State University Ser 1992 A ............. 5.50 07/01/19 1,034,700
1,000 University of Arizona, Telecommunications Ser 1991 COPs ................... 6.50 07/15/12 1,098,710
-------- -----------
2,000 2,133,410
-------- -----------
Electric Revenue (6.8%)
820 Salt River Project Agricultural Improvement & Power District, Refg 1992
Ser D ..................................................................... 6.25 01/01/27 882,820
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ........................................................ 4.50 07/01/19 948,460
1,000 Power Ser GG (FSA) ........................................................ 4.75 07/01/21 978,270
-------- -----------
2,820 2,809,550
-------- -----------
Hospital Revenue (12.2%)
700 Arizona Health Facilities Authority, Phoenix Memorial Hospital
Refg Ser 1991 ............................................................. 8.20 06/01/21 752,458
Maricopa County Industrial Development Authority,
2,000 Catholic Healthcare West 1992 Ser A (MBIA) ................................ 5.75 07/01/11 2,150,480
1,000 Mayo Clinic Ser 1998 ...................................................... 5.25 11/15/37 1,007,690
1,100 Pima County Industrial Development Authority, Carondelet Health Care
--------
Corp Ser 1993 (MBIA)** .................................................... 5.25 07/01/13 1,174,107
-----------
4,800 5,084,735
-------- -----------
Industrial Development/Pollution Control Revenue (9.3%)
1,000 Greenlee County Industrial Development Authority, Phelps Dodge Corp
Refg 1994 ................................................................. 5.45 06/01/09 1,047,600
1,000 Mohave County Industrial Development Authority, Citizens Utilities Co
1993 Ser B (AMT) .......................................................... 5.80 11/15/28 1,032,510
1,700 Santa Cruz County Industrial Development Authority, Citizens Utilities Co
--------
Ser 1991 (AMT) ............................................................ 7.15 02/01/23 1,769,938
-----------
3,700 3,850,048
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Multi-Family (2.4%)
$ 940 Pima County Industrial Development Authority, Rancho Mirage Ser 1992
-------
(AMT) (AGRC) ........................................................... 7.05 % 04/01/22 $ 1,005,396
-----------
Public Facilities Revenue (5.0%)
Arizona,
500 Refg Ser 1992 B COPs (AMBAC) ........................................... 6.25 09/01/10 543,760
500 Ser 1991 COPs (FSA) .................................................... 6.25 09/01/11 537,705
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------
(AMBAC) ................................................................ 5.00 07/01/28 1,001,640
-----------
2,000 2,083,105
------- -----------
Transportation Facilities Revenue (10.1%)
1,000 Phoenix, Street & Highway User Refg Ser 1993 ........................... 5.125 07/01/11 1,037,550
Tucson,
1,000 Street & Highway User Sr Lien Refg Ser 1993 ............................ 5.50 07/01/09 1,066,310
1,000 Street & Highway User Sr Lien Refg Ser 1996 (MBIA) ..................... 6.00 07/01/10 1,147,890
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ............. 4.75 07/01/38 960,360
------- -----------
4,000 4,212,110
------- -----------
Water & Sewer Revenue (24.9%)
1,000 Arizona Wastewater Management Authority, Wastewater Ser 1992 A
(AMBAC) ................................................................ 5.95 07/01/12 1,081,860
1,000 Arizona Water Infrastructure Finance Authority, Water Quality Ser 1998 A
(MBIA) ................................................................. 5.00 07/01/17 1,009,060
1,000 Chandler, Water & Sewer Refg Ser 1992 (FGIC) ........................... 6.25 07/01/13 1,091,780
1,000 Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) ....................... 6.50 07/01/22 1,121,350
1,000 Mesa, Utility Ser 1998 (MBIA) .......................................... 4.50 07/02/18 951,170
Phoenix Civic Improvement Corporation,
1,000 Wastewater Jr Lien Ser 1994 ............................................ 5.45 07/01/19 1,041,520
1,000 Wastewater Refg Ser 1993 ............................................... 4.75 07/01/23 968,930
1,000 Scottsdale Water & Sewer Refg Ser 1998 E (WI) .......................... 4.50 07/01/23 937,720
2,000 Tucson, Water Refg Ser 1991 ............................................ 6.50 07/01/16 2,160,280
------- -----------
10,000 10,363,670
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Refunded (3.0%)
$ 1,150 Arizona Health Facilities Authority, Phoenix Baptist Hospital & Medical
-------- Center Inc & Medical Environments Inc Ser 1992 (MBIA) (ETM) ................ 6.25 % 09/01/11 $ 1,266,127
-----------
37,160 TOTAL ARIZONA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $36,557,737)....................................................................... 38,937,619
-----------
SHORT-TERM ARIZONA TAX EXEMPT MUNICIPAL OBLIGATIONS (5.7%)
1,700 Maricopa County, Arizona Public Service Co Ser 1994 F (Demand 12/01/98)..... 3.25* 05/01/29 1,700,000
700 Tempe, Excise Tax Ser 1998 (Demand 12/01/98) ............................... 3.30* 07/01/23 700,000
-------- -----------
2,400 TOTAL SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS
(Identified Cost $2,400,000)........................................................................ 2,400,000
-----------
$ 39,560 TOTAL INVESTMENTS (Identified Cost $38,957,737) (a).................................... 99.2% 41,337,619
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........................................ 0.8 317,591
------- -----------
NET ASSETS ............................................................................ 100.0% $41,655,210
======= ===========
</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.
** 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
$2,379,882.
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
18
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- ---------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (93.7%)
General Obligation (10.7%)
California,
$ 2,000 Various Purpose 04/01/93 (FSA) ............................................ 5.50% 04/01/19 $ 2,086,660
2,000 Refg Dtd 10/01/98 ......................................................... 4.50 10/01/28 1,869,180
2,500 Carlsbad Unified School District, Ser 1997 (FGIC) ......................... 0.00 11/01/16 1,030,025
3,000 Los Angeles Unified School District, 1997 Ser B (FGIC) .................... 5.00 07/01/23 3,002,490
3,000 Mojave Water Agency, Impr Dist M Morongo Basin Pipeline Refg
--------
Ser 1996 (FGIC) ........................................................... 5.80 09/01/22 3,250,290
------------
12,500 11,238,645
-------- ------------
Educational Facilities Revenue (11.5%)
California Educational Facilities Authority,
2,000 Carnegie Institution of Washington 1993 Ser A ............................. 5.60 10/01/23 2,120,860
4,000 Claremont Colleges Ser 1992 ............................................... 6.375 05/01/22 4,295,840
1,360 Loyola Marymount University Refg Ser 1992 ................................. 6.00 10/01/14 1,442,280
1,500 University of San Diego Refg Ser 1998 (AMBAC) ............................. 4.75 10/01/15 1,510,725
2,500 University of Southern California Ser 1993 B .............................. 5.80 10/01/15 2,673,200
-------- ------------
11,360 12,042,905
-------- ------------
Electric Revenue (9.9%)
2,000 Kings River Conservation District, Pine Flat Power Ser D .................. 6.00 01/01/17 2,102,020
2,000 Los Angeles Department of Water & Power, Refg Issue of 1993
(Secondary AMBAC) ......................................................... 5.375 09/01/23 2,060,860
1,000 Sacramento Municipal Utility District, Refg 1993 Ser D (MBIA) ............. 5.625 11/15/15 1,051,860
5,000 Southern California Public Power Authority, Mead - Phoenix (AMBAC) ........ 5.15 07/01/15 5,245,100
-------- ------------
10,000 10,459,840
-------- ------------
Hospital Revenue (13.3%)
California Health Facilities Financing Authority,
2,000 Catholic Health Corp Ser 1992 A (MBIA) .................................... 6.00 07/01/13 2,177,560
2,000 Cedars-Sinai Medical Center Ser 1997 A (MBIA) ............................. 5.25 08/01/27 2,050,800
3,000 Scripps Memorial Hospitals Ser 1992 A (MBIA) .............................. 6.375 10/01/22 3,302,400
2,000 California Statewide Communities Development Authority,
Cedars-Sinai Medical Center Ser 1992 COPs ................................. 6.50 08/01/12 2,308,340
Duarte,
2,000 City of Hope National Medical Center Ser 1993 COPs ........................ 6.00 04/01/08 2,094,060
2,000 City of Hope National Medical Center Ser 1993 COPs ........................ 6.125 04/01/13 2,104,120
-------- ------------
13,000 14,037,280
-------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- ---------------
<S> <C> <C> <C> <C>
Industrial Development/Pollution Control Revenue (1.6%)
$ 1,500 California Pollution Control Financing Authority, San Diego Gas & Electric
-------- Co 1996 Ser A ................................................................ 5.90 % 06/01/14 $ 1,689,525
Mortgage Revenue - Multi-Family (2.1%) ------------
2,000 California Housing Finance Agency, Rental II 1992 Ser B ...................... 6.70 08/01/15 2,163,200
-------- ------------
Mortgage Revenue - Single Family (4.7%)
690 California Housing Finance Agency, Home 1991 Ser C (AMT) (MBIA) .............. 7.00 08/01/23 736,892
2,880 California Rural Home Finance Authority, 1997 Ser A-2 (AMT) .................. 7.00 09/01/29 3,254,688
935 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
-------- Ser C ........................................................................ 6.85 10/15/23 998,861
4,505 ------------
-------- 4,990,441
Public Facilities Revenue (7.9%) ------------
5,000 Anaheim Public Financing Authority, 1997 Ser C (FSA) ......................... 0.00 09/01/26 1,212,350
2,000 San Francisco California Redevelopment Agency, Ser 1998 (FSA) ................ 5.00 07/01/25 2,001,660
2,000 San Jose Financing Authority, Convention Center Refg 1993 Ser C .............. 6.375 09/01/13 2,133,440
2,700 Torrance, Refg 1991 COPs ..................................................... 6.80 07/01/12 2,922,858
-------- ------------
11,700 8,270,308
-------- ------------
Tax Allocation Revenue (1.0%)
1,000 Industry Urban-Development Agency, Transportation-Distribution-Industrial
Redev Proj #3 1992 Refg ...................................................... 6.90 11/01/16 1,096,980
Transportation Facilities Revenue (8.9%) ------------
2,000 Los Angeles County Transportation Commission, Sales Tax Refg Ser 1991-B 6.50 07/01/13 2,168,020
2,000 San Francisco Bay Area Rapid Transit District, Sales Tax Ser 1998 (AMBAC) 4.75 07/01/23 1,946,160
San Joaquin Hills Transportation Corridor Agency,
3,000 Toll Road Refg Ser 1997 A (MBIA) ............................................ 0.00 01/15/26 761,310
2,000 Toll Road Refg Ser 1997 A (MBIA) ............................................ 5.25 01/15/30 2,045,620
3,000 Toll Road Refg Ser 1997 A (MBIA) ............................................ 0.00 01/15/35 481,320
2,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................... 4.75 07/01/38 1,920,720
-------- ------------
14,000 9,323,150
-------- ------------
Water & Sewer Revenue (14.6%)
1,000 Contra Costa Water Authority, 1992 Ser E (AMBAC) ............................. 6.25 10/01/12 1,188,990
East Bay Municipal Utility District,
3,000 Water Refg Ser 1992 ......................................................... 6.00 06/01/20 3,214,890
2,000 Water Refg Ser 1998 (MBIA) .................................................. 4.75 06/01/34 1,930,200
3,000 Eastern Municipal Water District, Water & Sewer Refg Ser 1998 A COPs
(FGIC) ....................................................................... 4.75 07/01/23 2,919,240
2,000 Metropolitan Water District of Southern California, Waterworks 1997 S r A .... 5.00 07/01/26 2,004,980
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------- ---------------
<S> <C> <C> <C> <C>
$ 2,000 San Francisco Public Utilities Commission, Water 1992 Refg Ser A ............. 6.00% 11/01/15 $ 2,133,980
2,000 Stockton, Waste Water 1998 Ser A (MBIA) ...................................... 5.00 09/01/23 2,001,600
-------- ------------
15,000 15,393,880
-------- ------------
Refunded (7.5%)
1,000 Alameda County Water District, 1992 COPs (MBIA) .............................. 6.20 06/01/02+ 1,104,240
2,000 Los Angeles County, 1991 Master Refg COPs .................................... 6.708 05/01/01+ 2,172,620
4,000 San Diego County Water Authority, Ser 1991-B COPs (MBIA) ..................... 6.30 05/01/06+ 4,605,440
-------- ------------
7,000 7,882,300
-------- ------------
103,565 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $91,659,053).......................................................................... 98,588,454
SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.9%) ------------
3,550 California Pollution Control Financing Authority, Pacific Gas & Electric Co
Ser 1997 A (Demand 12/01/98) ................................................. 3.25* 12/01/18 3,550,000
1,560 Newport Beach, Hoag Memorial Hospital/Presbyterian Ser 1992
-------- (Demand 12/01/98) ............................................................ 3.25* 10/01/22 1,560,000
5,110 TOTAL SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS ------------
- --------- (Identified Cost $5,110,000) .......................................................................... 5,110,000
------------
$108,675 TOTAL INVESTMENTS (Identified Cost $96,769,053) (a)....................................... 98.6% 103,698,454
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........................................... 1.4 1,476,987
------ ------------
NET ASSETS ............................................................................... 100.0% $105,175,441
====== ============
</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
$7,022,857 and the aggregate gross unrealized depreciation is
$93,456, resulting in net unrealized appreciation of $6,929,401.
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
21
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
FLORIDA TAX-EXEMPT MUNICIPAL BONDS (91.6%)
General Obligation (2.7%)
$ 1,500 Florida Board of Education, Capital Outlay Refg Ser 1992 A ................... 6.40% 06/01/19 $ 1,632,195
-------- -----------
Educational Facilities Revenue (2.6%)
1,500 Volusia County Educational Facilities Authority, Embry-Riddle
- --------- Aeronautical University Ser 1996 A ........................................... 6.125 10/15/16 1,615,605
-----------
Electric Revenue (16.6%)
2,000 Jacksonville Electric Authority, St Johns River Power Park Issue 2 Ser 7 ..... 5.50 10/01/14 2,097,280
1,000 Jupiter Island, South Martin Reg Utility Ser 1998 (MBIA) ..................... 5.00 10/01/28 1,000,820
1,000 Lakeland, Electric & Water Refg Ser 1996 (FGIC) .............................. 6.00 10/01/14 1,145,190
Orlando Utilities Commission,
1,000 Refg Ser 1993 A ............................................................. 5.25 10/01/14 1,031,180
1,000 Ser 1993 .................................................................... 5.125 10/01/19 1,006,520
Puerto Rico Electric Power Authority,
2,000 Power Ser DD (FSA) .......................................................... 4.50 07/01/19 1,896,920
2,000 Power Ser O ................................................................. 5.00 07/01/12 2,003,120
-------- -----------
10,000 10,181,030
-------- -----------
Hospital Revenue (12.2%)
1,000 Alachua County Health Facilities Authority, Shands Teaching Hospital &
Clinics Ser 1996 A (MBIA) .................................................... 6.25 12/01/11 1,178,430
1,000 Jacksonville, University Medical Center Inc Ser 1992 (Connie Lee) ............ 6.60 02/01/21 1,087,990
1,000 Orange County Health Facilities Authority, Adventist Health/Sunbelt
Ser 1995 (AMBAC) ............................................................. 5.25 11/15/20 1,013,530
945 Polk County Industrial Development Authority, United Haven Hospital
1985 Ser 2 (MBIA) ............................................................ 6.25 09/01/15 1,039,282
2,000 Sarasota County Public Hospital Board, Sarasota Memorial Hospital
Refg Ser 1998 B (MBIA) ....................................................... 5.25 07/01/24 2,089,400
1,000 Tampa Health System, Catholic Health East Health Ser 1998 A-1 (MBIA) ......... 5.50 11/15/14 1,086,740
-------- -----------
6,945 7,495,372
-------- -----------
Industrial Development/Pollution Control Revenue (8.9%)
Citrus County,
500 Florida Power Corp Refg Ser 1992 B .......................................... 6.35 02/01/22 543,860
2,000 Florida Power Corp Refg Ser 1992 A .......................................... 6.625 01/01/27 2,166,220
1,500 St Johns County Industrial Development Authority, Professional Golf Hall
of Fame Ser 1996 (MBIA) ...................................................... 5.80 09/01/16 1,627,095
1,000 St Lucie County, Florida Power & Light Co Ser 1992 (AMT) ..................... 6.70 05/01/27 1,090,970
-------- -----------
5,000 5,428,145
-------- -----------
Mortgage Revenue -- Single Family (3.4%)
400 Brevard County Housing Finance Authority, Refg Ser 1991 B (FSA) .............. 7.00 03/01/13 422,788
320 Florida Housing Finance Agency, GNMA Collateral 1990 Ser G-1 (AMT) ........... 7.90 03/01/22 336,909
1,230 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
-------- Ser C ........................................................................ 6.85 10/15/23 1,314,009
-----------
1,950 2,073,706
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Public Facilities Revenue (10.6%)
$ 2,000 Manatee County School Board, COPs (MBIA) ............................. 4.875% 07/01/18 $ 1,993,660
1,000 Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) .......... 6.15 10/01/20 1,092,880
3,000 Palm Beach County, Criminal Justice Ser 1997 (FGIC) .................. 5.75 06/01/13 3,368,970
------- -----------
6,000 6,455,510
------- -----------
Resource Recovery Revenue (1.8%)
1,000 Lee County, Solid Waste Ser 1991 A (AMT) (MBIA) ...................... 6.50 10/01/13 1,084,210
------- -----------
Transportation Facilities Revenue (20.1%)
1,000 Dade County, Aviation 1992 Ser B (AMT) (MBIA) ........................ 6.60 10/01/22 1,103,070
Greater Orlando Aviation Authority,
1,000 Ser 1997 (AMT) (FGIC) ............................................... 5.75 10/01/11 1,110,480
750 Ser 1992 A (AMT) (FGIC) ............................................. 6.50 10/01/12 826,080
1,000 Hillsborough County Aviation Authority, Tampa Int'l Airport
Refg Ser 1993 B (FGIC) ............................................... 5.60 10/01/19 1,052,030
1,500 Lee County, Refg Ser 1991 (AMBAC) .................................... 6.00 10/01/17 1,578,030
Mid-Bay Bridge Authority,
3,000 Refg Ser 1993 A (AMBAC) ............................................. 5.95 10/01/22 3,291,480
3,000 Ser 1997 A (AMBAC) .................................................. 0.00 10/01/24 786,390
1,500 Osceola County, Osceola Parkway (MBIA) ............................... 6.10 04/01/17 1,623,660
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ........... 4.75 07/01/38 960,360
------- -----------
13,750 12,331,580
------- -----------
Water & Sewer Revenue (9.2%)
2,000 Dade County, Water & Sewer Ser 1995 (FGIC) ........................... 5.50 10/01/25 2,108,560
485 Orange County, Water Utilities Ser 1992 (AMBAC) ...................... 6.25 10/01/17 527,234
1,000 Sunrise, Utility Refg Ser 1998 (AMBAC) ............................... 5.50 10/01/18 1,088,850
2,000 Tampa Bay, Water Utility Ser 1998 B (FGIC) ........................... 4.75 10/01/27 1,926,900
------- -----------
5,485 5,651,544
------- -----------
Refunded (3.5%)
1,000 Hillsborough County Industrial Authority, Allegany Health/John Knox
Village of Tampa Bay Inc Ser 1992 (MBIA) ............................. 6.375 12/01/03+ 1,085,110
1,000 South Broward Hospital District, Ser 1991 B & C (AMBAC) .............. 6.611 05/01/01+ 1,084,820
------- -----------
2,000 2,169,930
------- -----------
55,130 TOTAL FLORIDA TAX-EXEMPT MUNICIPAL BONDS
-------
(Identified Cost $52,206,628)................................................................... 56,118,827
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.1%)
$ 300 Dade County Health Facilities Authority, Miami Children's Hospital
Ser 1990 (Demand 12/01/98) ......................................... 3.30*% 09/01/20 $ 300,000
2,800 Escambia County, Gulf Power Co Ser 1997 (Demand 12/01/98) .......... 3.45* 07/01/22 2,800,000
------- -----------
3,100 TOTAL SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------
(Identified Cost $3,100,000).................................................................... 3,100,000
-----------
$58,230 TOTAL INVESTMENTS (Identified Cost $55,306,628) (a).............................. 96.7% 59,218,827
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................. 3.3 2,043,206
-------- -----------
NET ASSETS ...................................................................... 100.0% $61,262,033
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
* Current coupon of variable rate demand obligation.
+ Prerefunded to call date shown.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$3,912,199.
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
24
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MASSACHUSETTS
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS (94.1%)
General Obligation (3.9%)
$ 500 Massachusetts, Refg 1992 Ser B ......................................... 6.50% 08/01/08 $ 587,755
-------- -----------
Educational Facilities Revenue (26.3% )
Massachusetts Health & Educational Facilities Authority,
400 Boston University Ser K & L (MBIA) ..................................... 6.66 10/01/31 434,632
500 Brandeis University 1998 Ser I (MBIA) (WI) ............................. 4.75 10/01/28 476,970
400 Suffolk University Ser B (Connie Lee) .................................. 6.25 07/01/12 432,516
300 Suffolk University Ser C (Connie Lee) .................................. 5.75 07/01/26 318,834
500 University of Massachusetts Foundation Inc/Medical School Research
Ser A (Connie Lee) .................................................... 6.00 07/01/23 540,880
Massachusetts Industrial Finance Agency,
500 Babson College Ser 1998 A (MBIA) ....................................... 4.75 10/01/28 478,455
500 College of Holy Cross 1996 Issue (MBIA) ................................ 5.50 03/01/16 528,160
300 Mount Holyoke College Refg Ser 1992 A (MBIA) ........................... 6.30 07/01/13 322,965
500 Tufts University Ser H (MBIA) .......................................... 4.75 02/15/28 478,655
-------- -----------
3,900 4,012,067
-------- -----------
Electric Revenue (7.1% )
500 Massachusetts Municipal Wholesale Electric Company, Power Supply
1992 Ser C ............................................................. 6.625 07/01/18 539,005
500 Puerto Rico Electric Power Authority, Power Ser X ...................... 6.00 07/01/15 544,090
-------- -----------
1,000 1,083,095
-------- -----------
Hospital Revenue (13.9%)
500 Boston, Boston City Hospital - FHA Insured Mtge Refg Ser B ............. 5.75 02/15/13 521,250
Massachusetts Health & Educational Facilities Authority,
500 Lahey Clinic Medical Center Ser B (MBIA) ............................... 5.625 07/01/15 525,050
1,000 Massachusetts General Hospital Ser F (AMBAC) ........................... 6.00 07/01/15 1,073,480
-------- -----------
2,000 2,119,780
-------- -----------
Industrial Development/Pollution Control Revenue (6.8%)
1,000 Massachusetts Industrial Finance Agency, Eastern Edison Co Refg Ser 1993 5.875 08/01/08 1,037,260
-------- -----------
Mortgage Revenue - Multi-Family (3.3%)
470 Massachusetts Housing Finance Agency, Rental 1994 Ser A (AMT) (AMBAC) 6.60 07/01/14 508,813
-------- -----------
Mortgage Revenue - Single Family (4.5%)
Massachusetts Housing Finance Agency,
435 Ser 21 (AMT) ........................................................... 6.30 06/01/25 454,684
220 Ser 21 (AMT) ........................................................... 7.125 06/01/25 235,761
-------- -----------
655 690,445
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MASSACHUSETTS
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- -------- ------------ -------------
<S> <C> <C> <C> <C>
Student Loan Revenue (3.9%)
$ 125 Massachusetts Educational Facilities Authority, Education Loan Issue D
Ser A 1991 (AMT) (MBIA) ................................................... 7.25% 01/01/09 $ 133,597
400 New England Education Loan Marketing Corporation, 1992 Sub Issue H
-------
(AMT) ..................................................................... 6.90 11/01/09 464,064
-----------
525 597,661
------- -----------
Transportation Facilities Revenue (14.0%)
500 Massachusetts Bay Transportation Authority, 1998 Ser A (MBIA) ............. 5.50 03/01/15 543,280
500 Massachusetts, Federal Highway Grant Anticipation Notes 1998 Ser A ........ 5.50 06/15/14 536,930
500 Massachusetts Port Authority, Refg Ser 1998 A ............................. 5.75 07/01/12 559,205
500 Massachusetts Turnpike Authority, Highway 1997 Ser A (MBIA)** ............. 5.00 01/01/37 487,515
------- -----------
2,000 2,126,930
------- -----------
Water & Sewer Revenue (10.4%)
500 Boston Water & Sewer Commission, 1992 Ser A ............................... 5.75 11/01/13 555,485
500 Massachusetts Water Pollution Abatement Trust, Pool Ser 2 ................. 5.70 02/01/12 541,495
500 Massachusetts Water Resources Authority, 1998 Ser A (FSA) ................. 4.75 08/01/27 480,300
------- -----------
1,500 1,577,280
------- -----------
13,550 TOTAL MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $13,334,308).................................................................... 14,341,086
-----------
SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATION (4.6%)
700 Massachusetts Health & Educational Facilities Authority, Capital Assets
------- Ser D (MBIA) (Demand 12/01/98) (Identified Cost $700,000).................. 2.95* 01/01/35 700,000
-----------
$14,250 TOTAL INVESTMENTS (Identified Cost $14,034,308) (a)................................ 98.7% 15,041,086
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 1.3 195,004
------ -----------
NET ASSETS ........................................................................ 100.0% $15,236,090
====== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
WI Security purchased on a "when-issued" basis.
* Current coupon of variable rate demand obligation.
** 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
$1,006,778.
Bond Insurance:
- ---------------
AMBAC AMBAC Indemnity Corporation.
Connie Lee Connie Lee 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 -- MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
MICHIGAN TAX-EXEMPT MUNICIPAL BONDS (93.1%)
General Obligation (20.9%)
$ 500 Chelsea School District, 1998 Bldg & Site (FGIC) .......................... 5.00% 05/01/25 $ 495,635
500 Detroit, Ser 1997 A (MBIA) ................................................ 5.00 04/01/18 499,965
800 Holly Area School District, 1995 Bldg & Site (FGIC) ....................... 5.375 05/01/13 836,888
500 Michigan Municipal Bond Authority, School Loan Ser 1998 ................... 5.25 12/01/13 526,115
800 Mona Shores Public Schools, 1995 Bldg & Site (FGIC) ....................... 5.80 05/01/17 860,304
500 Puerto Rico, Pub Impr Ser 1998 (MBIA) ..................................... 4.875 07/01/23 496,085
-------- -----------
3,600 3,714,992
-------- -----------
Educational Facilities Revenue (12.3%)
800 Central Michigan University, Refg Ser 1993 (AMBAC) ........................ 5.50 10/01/10 843,656
500 Grand Traverse County Hospital, Munson Healthcare Ser 1998 A (AMBAC) 4.75 07/01/22 476,125
800 Oakland University, Board of Trustees, Ser 1995 (MBIA) .................... 5.75 05/15/26 862,440
-------- -----------
2,100 2,182,221
-------- -----------
Electric Revenue (10.2%)
500 Michigan Public Power Agency, Belle River 1993 A .......................... 5.25 01/01/18 505,420
500 Wyandotte, Electric Refg 1992 (MBIA) ...................................... 6.25 10/01/17 548,200
800 Puerto Rico Electric Power Authority, Power Ser DD (FSA) .................. 4.50 07/01/19 758,768
-------- -----------
1,800 1,812,388
-------- -----------
Hospital Revenue (4.7%)
800 Michigan Hospital Finance Authority, Mercy Health Services 1996 Ser R
(AMBAC) ................................................................... 5.375 08/15/16 824,032
-----------
Industrial Development/Pollution Control Revenue (3.1%)
500 Monroe County, Detroit Edison Co Collateralized Ser 1-1992 (AMT) (MBIA) ... 6.875 09/01/22 554,505
-------- -----------
Mortgage Revenue -- Multi-Family (10.2%)
Michigan Housing Development Authority,
465 Rental Ser 1992 A ........................................................ 6.60 04/01/12 503,083
825 1992 Ser A (FSA) ......................................................... 6.50 04/01/23 883,088
400 Ser 1990 A (AMT) ......................................................... 7.70 04/01/23 429,336
-------- -----------
1,690 1,815,507
-------- -----------
Public Facilities (5.8%)
500 Michigan Building Authority, Refg Ser I ................................... 6.25 10/01/20 536,965
500 Michigan House of Representatives, Capital Outlook LLC COPs (AMBAC) ....... 5.00 08/15/20 496,035
-------- -----------
1,000 1,033,000
-------- -----------
Transportation Facilities Revenue (8.6%)
Wayne County, Detroit Metropolitan Wayne County Airport Sub Lien,
250 Ser 1991 B (AMT) (MBIA) ................................................... 6.75 12/01/21 272,253
800 Ser 1998 B (MBIA) ........................................................ 4.875 12/01/23 774,176
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 480,180
-------- -----------
1,550 1,526,609
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MICHIGAN
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Water & Sewer Revenue (11.1%)
Detroit,
$ 1,000 Sewage Refg Ser 1993 A (FGIC) ................................... 5.70 % 07/01/23 $ 1,053,090
400 Water Supply Refg Ser 1992 (FGIC) ............................... 6.375 07/01/22 437,460
500 Grand Rapids, Water Ser 1998 A (FGIC) ............................ 4.75 01/01/28 478,710
------- -----------
1,900 1,969,260
------- -----------
Refunded (6.2%)
1,000 Detroit, Water Supply Refg Ser 1992 (FGIC) ....................... 6.375 07/01/02+ 1,099,640
------- -----------
15,940 TOTAL MICHIGAN TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $15,578,409) ................................................................. 16,532,154
-----------
SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATION (4.5%)
800 Royal Oak Hospital Finance Authority, William Beaumont Hospital
------- Ser 1996 J (Demand 12/01/98) (Identified Cost $800,000) .......... 3.25* 01/01/03 800,000
-----------
$16,740 TOTAL INVESTMENTS (Identified Cost $16,378,409) (a) ........................... 97.6% 17,332,154
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................................ 2.4 427,056
-------- -----------
NET ASSETS .................................................................... 100.0% $17,759,210
======== ===========
</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
$953,745.
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
28
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
MINNESOTA TAX-EXEMPT MUNICIPAL BONDS (90.4%)
General Obligation (7.2%)
$ 300 Minneapolis, Various Purpose Refg Ser 1998 D .................................. 5.00 % 12/01/17 $ 303,534
300 Minnesota, Various Purpose Refg Ser 1998 ...................................... 5.00 06/01/16 304,992
------- ----------
600 608,526
------- ----------
Educational Facilities Revenue (14.9%)
Minnesota Higher Education Facilities Authority,
200 Northfield St Olaf College 1992 .............................................. 6.40 10/01/21 216,978
1,000 University of Minnesota Ser 1993 A ........................................... 4.80 08/15/03 1,038,250
------- ----------
1,200 1,255,228
------- ----------
Electric Revenue (7.6%)
200 Southern Minnesota Municipal Power Agency, Ser 1988 A (AMBAC) ................. 5.00 01/01/13 205,476
400 Western Minnesota Municipal Power Agency, Refg 1996 Ser A (AMBAC) ............. 5.50 01/01/12 430,164
------- ----------
600 635,640
------- ----------
Hospital Revenue (13.8%)
400 Robbinsdale, North Memorial Medical Center Ser 1993 A (AMBAC) ................. 5.45 05/15/13 421,452
Rochester,
200 Mayo Foundation/Mayo Medical Center Ser 1992 I ............................... 5.75 11/15/21 208,688
200 Mayo Foundation/Mayo Medical Center Ser 1992 F ............................... 6.25 11/15/21 217,432
290 Saint Paul Housing & Redevelopment Authority, Health East Refg
------- Ser 1993-A .................................................................... 6.625 11/01/17 311,179
----------
1,090 1,158,751
------- ----------
Industrial Development/Pollution Control Revenue (14.8%)
200 Anoka County, United Power Assoc Ser 1987 A (NRU-CFC-Gtd) (AMT) ............... 6.95 12/01/08 212,634
400 Bass Brook, Minnesota Power & Light Co Refg Ser 1992 .......................... 6.00 07/01/22 419,128
Minneapolis Community Development Agency,
100 Ltd Tax Supported Common Bond Fund Ser 1991-3 ................................ 8.25 12/01/11 113,414
100 Ltd Tax Supported Common Bond Fund Ser 1991-1 (AMT) .......................... 8.00 12/01/16 110,822
400 Minnesota Public Facilities Authority, Water Pollution Control 1998 Ser A ..... 4.75 03/01/19 392,824
------- ----------
1,200 1,248,822
------- ----------
Mortgage Revenue -- Multi-Family (6.3%)
300 Burnsville, Summit Park Apts -- FHA Insured Refg Ser 1993 ..................... 6.00 07/01/33 312,375
200 Minnesota Housing Finance Agency, Ser 1992 A .................................. 6.95 08/01/17 214,398
------- ----------
500 526,773
------- ----------
Mortgage Revenue -- Single Family (9.6%)
145 Minneapolis-Saint Paul Housing Finance Board, GNMA-Backed Phase IX
Ser 1991 (AMT) ................................................................ 7.25 08/01/21 152,936
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Minnesota Housing Finance Agency,
$ 420 Ser 1992 C-1 (AMT) ....................................................... 6.75% 07/01/23 $ 446,157
200 Ser 1992 H (AMT) ......................................................... 6.50 01/01/26 211,780
------ ----------
765 810,873
------ ----------
Nursing & Health Related Facilities Revenue (6.4%)
500 Minneapolis & Saint Paul Housing & Redevelopment Authority, Group
Health Plan Inc Ser 1992 .................................................. 6.75 12/01/13 542,440
----------
Transportation Facilities Revenue (4.7%)
400 Minneapolis -- Saint Paul Metropolitan Airports Commission, Ser 1998 A
(AMBAC) ................................................................... 5.00 01/01/30 396,244
----------
Refunded (5.1%)
400 Saint Paul Housing & Redevelopment Authority, Civic Center Ser 1993
(ETM) ..................................................................... 5.45 11/01/13 427,044
----------
7,255 TOTAL MINNESOTA TAX-EXEMPT MUNICIPAL BONDS
------
(Identified Cost $7,187,518) .................................................................... 7,610,341
----------
SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.1%)
400 Beltrami County, Northwood Panelboard Co Ser 1991 (Demand 12/01/98) ....... 3.25* 12/01/21 400,000
200 Minneapolis & Saint Paul Housing & Redevelopment Authority, Children's
------
Health Care Ser 1995 B (Demand 12/01/98) .................................. 3.30* 08/15/25 200,000
----------
600 TOTAL SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS
------
(Identified Cost $600,000) ...................................................................... 600,000
----------
$7,855 TOTAL INVESTMENTS (Identified Cost $7,787,518) (a) ................................. 97.5% 8,210,341
======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 2.5 206,327
-------- ----------
NET ASSETS ......................................................................... 100.0% $8,416,668
======== ==========
</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
$426,559 and the aggregate gross depreciation is $3,736,
resulting in net unrealized appreciation of $422,823.
Bond Insurance:
- ---------------
AMBAC AMBAC Indemnity Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS (92.4%)
General Obligation (2.3%)
$ 1,000 New Jersey, Ser 1998 ......................................................... 4.50% 03/01/18 $ 956,450
-------- -----------
Educational Facilities Revenue (16.5%)
New Jersey Economic Development Authority,
1,750 Educational Testing Service Ser 1998 A (MBIA) ............................... 4.75 05/15/25 1,706,197
1,000 The Lawrenceville School Ser A 1996 ......................................... 5.75 07/01/16 1,085,450
500 The Seeing Eye Inc 1991 ..................................................... 7.30 04/01/11 529,185
1,000 New Jersey Educational Facilities Authority, Drew University
1998 Ser C (MBIA) ............................................................ 5.00 07/01/17 1,012,260
500 Rutgers, The State University Refg Ser R ..................................... 6.50 05/01/13 548,290
2,000 University of Medicine & Dentistry, 1997 Ser A (MBIA) ........................ 5.00 09/01/17 2,029,120
-------- -----------
6,750 6,910,502
-------- -----------
Electric Revenue (4.8%)
2,000 Puerto Rico Electric Power Authority, Power Ser O ............................ 5.00 07/01/12 2,003,120
-------- -----------
Hospital Revenue (8.9%)
New Jersey Health Care Facilities Financing Authority,
1,000 AHS Hospital Corp Ser 1997 A (AMBAC) ........................................ 6.00 07/01/13 1,138,360
1,000 Atlantic City Medical Center Ser C .......................................... 6.80 07/01/11 1,103,960
465 Robert Wood Johnson University Hospital Ser B (MBIA) ........................ 6.625 07/01/16 503,079
1,000 Saint Barnabas Medical Center/West Hudson Hospital Obligated Group
-------- Refg Ser 1998 A (MBIA) ....................................................... 4.75 07/01/28 972,090
-----------
3,465 3,717,489
-------- -----------
Industrial Development/Pollution Control Revenue (6.4%)
500 Middlesex County Pollution Control Financing Authority, Amerada
Hess Corp Refg Ser 1992 ...................................................... 6.875 12/01/22 544,155
1,000 New Jersey Economic Development Authority, Elizabethtown Water Co
1995 Ser (AMT) (MBIA) ........................................................ 5.60 12/01/25 1,046,020
1,000 Salem County Pollution Control Financing Authority, E I du Pont de
-------- Nemours & Co 1992 Ser A (AMT) ................................................ 6.125 07/15/22 1,076,340
-----------
2,500 2,666,515
-------- -----------
Mortgage Revenue -- Multi-Family (9.0%)
New Jersey Housing & Mortgage Finance Agency,
2,000 1995 Ser A (AMBAC) .......................................................... 6.00 11/01/14 2,146,860
1,000 Presidential Plaza at Newport -- FHA Insured Mtges Refg 1991 Ser 1 .......... 7.00 05/01/30 1,093,270
500 Rental 1991 Ser A (AMT) ..................................................... 7.25 11/01/22 529,945
-------- -----------
3,500 3,770,075
-------- -----------
Nursing & Health Related Facilities Revenue (2.3%)
910 New Jersey Health Care Facilities Financing Authority, Spectrum For Living
-------- -- FHA Insured Mortgage Refg Ser B ........................................... 6.50 02/01/22 983,419
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, 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 $ 1,554,060
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------- (AMBAC) ..................................................................... 5.00 07/01/28 1,001,640
-----------
2,500 2,555,700
------- -----------
Resource Recovery Revenue (3.4%)
500 Union County Utilities Authority, Ogden Martin Systems of Union Inc
Ser 1998 A (AMT) (AMBAC) .................................................... 5.00 06/01/23 489,625
900 Warren County Pollution Control Financing Authority, Warren Energy
-------- Resource Co Ltd Partnership Ser 1984 (MBIA) ................................. 6.60 12/01/07 917,946
-----------
1,400 1,407,571
------- -----------
Transportation Facilities Revenue (13.9%)
1,500 Delaware River Port Authority, Ser 1995 (FGIC) .............................. 5.50 01/01/26 1,569,765
1,500 New Jersey Highway Authority, Sr Parkway Refg 1992 Ser ...................... 6.25 01/01/14 1,617,630
1,000 New Jersey Turnpike Authority, Ser 1991 C ................................... 5.75 01/01/11 1,021,780
1,500 Port Authority of New York & New Jersey, Cons 99th Ser (AMT) (FGIC) ......... 5.75 05/01/15 1,599,195
------- -----------
5,500 5,808,370
------- -----------
Water & Sewer Revenue (17.6%)
1,000 Atlantic City Municipal Utilities Authority, Refg Ser 1993 .................. 5.75 05/01/17 1,050,480
1,000 Bayonne Municipal Utilities Authority, Water Ser 1997 (MBIA) ................ 5.00 01/01/28 1,007,580
1,000 Bergen County Utilities Authority, Water 1998 Ser A (FGIC) .................. 4.75 12/15/15 997,660
1,000 Camden County Municipal Utilities Authority, Sewer Refg Ser 1997 (FGIC) ..... 5.25 07/15/17 1,036,210
1,000 Northwest Bergen County Utilities Authority, Refg 1992 Ser (MBIA) ........... 6.00 07/15/13 1,095,830
2,000 Passaic Valley Sewerage Commissioners, Ser 1992 D (AMBAC) ................... 5.75 12/01/13 2,158,540
------- -----------
7,000 7,346,300
------- -----------
Refunded (1.2%)
460 New Jersey Health Care Facilities Financing Authority, Pascack Valley
------- Hospital Assn Ser 1991 ...................................................... 6.90 07/01/01+ 489,491
-----------
36,985 TOTAL NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS
-------
(Identified Cost $35,972,560)....................................................................... 38,615,002
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.7%)
$ 2,000 New Jersey Economic Development Authority, Foreign Trade Zone Ser 1998
(Demand 12/01/98) ....................................................... 3.25*% 12/01/07 $ 2,000,000
400 Union County Industrial Pollution Control Financing Authority, Exxon Corp
-------- Ser 1994 (Demand 12/01/98) .............................................. 2.80* 07/01/33 400,000
-----------
2,400 TOTAL SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------
(Identified Cost $2,400,000)..................................................................... 2,400,000
-----------
$39,385 TOTAL INVESTMENTS (Identified Cost $38,372,560) (a)................................. 98.1% 41,015,002
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 1.9 788,010
-------- -----------
NET ASSETS ......................................................................... 100.0% $41,803,012
======== ===========
</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
$2,642,442.
Bond Insurance:
- ---------------
AMBAC AMBAC Indemnity Corporation.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW YORK
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
NEW YORK TAX-EXEMPT MUNICIPAL BONDS (92.2%)
General Obligation (13.5%)
$ 500 New York City, 1995 Ser D (MBIA) ........................................ 6.20% 02/01/07 $ 565,635
500 New York State, Refg Ser 1995 B ......................................... 5.70 08/15/13 536,190
Puerto Rico,
300 Public Improvement Refg Ser 1992 A ..................................... 6.00 07/01/14 321,669
200 Public Improvement Ser 1998 (MBIA) ..................................... 4.875 07/01/23 198,434
-------- -----------
1,500 1,621,928
-------- -----------
Educational Facilities Revenue (19.6%)
500 Hempstead Industrial Development Agency, Hofstra University Ser 1996
(MBIA) .................................................................. 5.80 07/01/15 547,280
New York State Dormitory Authority,
300 Cooper Union Ser 1996 (AMBAC) .......................................... 5.375 07/01/16 312,414
400 Manhattan College Ser 1992 (AGRC) ...................................... 6.50 07/01/19 436,504
500 State University Ser 1993 A** .......................................... 5.25 05/15/15 527,140
500 University of Rochester Ser 1993 A ..................................... 5.625 07/01/12 530,135
-------- -----------
2,200 2,353,473
-------- -----------
Electric Revenue (6.1%)
300 Long Island Power Authority, Electric Ser 1998 A (FSA) .................. 5.125 12/01/22 300,906
400 Puerto Rico Electric Power Authority, Power Ser X ....................... 6.00 07/01/15 435,272
-------- -----------
700 736,178
-------- -----------
Hospital Revenue (1.8%)
200 New York State Medical Care Facilities Finance Agency, Insured Hospital &
Nursing Home -- FHA Insured Mtge 1992 Ser A ............................. 6.70 08/15/23 217,174
-----------
Industrial Development/Pollution Control Revenue (14.1%)
500 New York City Industrial Development Agency, Japan Airlines Co 1991
(AMT) (FSA) ............................................................. 6.00 11/01/15 537,325
1,000 New York State Energy Research & Development Authority, Brooklyn
-------- Union Gas Co 1991 Ser A & B (AMT) ....................................... 6.952 07/01/26 1,161,710
-----------
1,500 1,699,035
-------- -----------
Mortgage Revenue -- Single Family (4.5%)
500 New York State Mortgage Agency, Home Owners Ser 27 ...................... 6.90 04/01/15 538,575
-------- -----------
Nursing & Health Related Facilities Revenue (3.9%)
500 New York City Industrial Development Agency, Lighthouse International
-------- Project Ser 1998 (MBIA) ................................................. 4.50 07/01/23 462,830
-----------
Public Facilities Revenue (8.8%)
500 New York City Cultural Resources Trust, The New York Botanical Garden
Ser 1996 (MBIA) ......................................................... 5.75 07/01/16 539,660
500 New York State Urban Development Corporation, Correctional 1998
--------
Ser B (AMBAC) (WI) ...................................................... 5.25 01/01/16 516,260
-----------
1,000 1,055,920
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW YORK
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS COUPON MATURITY
- ----------- RATE DATE VALUE
<S> <C> ------------ ------------ --------------
Resource Recovery Revenue (4.5%) <C> <C> <C>
$ 500 Oneida-Herkimer Solid Waste Management Authority, Ser 1992 ................. 6.65 % 04/01/05 $ 540,035
-------- -----------
Transportation Facilities Revenue (11.4%)
550 Buffalo & Fort Erie Public Bridge Authority, Toll Bridge Ser 1995 (MBIA) ... 5.75 01/01/25 590,178
300 New York State Thruway Authority, Local Highway & Bridge Ser 1998 A
(MBIA) ..................................................................... 5.00 04/01/18 300,753
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................. 4.75 07/01/38 480,180
-------- -----------
1,350 1,371,111
-------- -----------
Water & Sewer Revenue (4.0%)
500 New York City Municipal Water Finance Authority, 1999 Ser A (FGIC) ........ 4.75 06/15/31 477,685
-------- -----------
10,450 TOTAL NEW YORK TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $10,222,561)........................................................................ 11,073,944
SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS (10.0%) -----------
600 Port Authority of New York & New Jersey, Ser 2 (Demand 12/01/98) .......... 3.25* 05/01/19 600,000
600 Syracuse Industrial Development Agency, Syracuse University Eggers Hall
--------
Ser 1993 (Demand 12/01/98) ................................................ 3.30* 03/01/23 600,000
-----------
1,200 TOTAL SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $1,200,000)......................................................................... 1,200,000
-----------
$ 11,650 TOTAL INVESTMENTS (Identified Cost $11,422,561) (a) ...................................... 102.2% 12,273,944
========
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS ........................................... (2.2) (260,616)
-------- -----------
NET ASSETS ............................................................................... 100.0% $12,013,328
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
WI Security purchased on a "when-issued" basis.
* Current coupon of variable rate demand obligation.
** 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
$859,456 and the aggregate gross unrealized depreciation is
$8,073, resulting in net unrealized appreciation of $851,383.
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
35
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
OHIO TAX-EXEMPT MUNICIPAL BONDS (94.1%)
General Obligation (23.8%)
$ 300 Bedford School District, Ser 1993 ..................................... 6.25% 12/01/13 $ 329,073
800 Delaware City School District, Constr & Impr (FGIC) ................... 5.75 12/01/20 856,992
800 North Olmsted, Various Purpose Impr Ltd Tax Ser 1996 (AMBAC) .......... 6.20 12/01/11 922,864
800 Ohio Infrastructure Improvement Ser 1998 B ............................ 4.75 02/01/18 787,096
500 Ottawa County, Various Purpose Dtd 07/01/98 (MBIA) .................... 5.00 09/01/31 496,770
500 Rocky River City School District, Impr Ser 1998 ....................... 5.375 12/01/17 536,225
500 Puerto Rico, Public Impr Ser 1998 (MBIA) .............................. 4.875 07/01/23 496,085
-------- -----------
4,200 4,425,105
-------- -----------
Educational Facilties Revenue (8.7%)
500 Ohio Higher Educational Facility Commission, Case Western Reserve
University Ser 1992 ................................................... 6.00 10/01/22 536,385
500 University of Cincinnati, General Receipts Ser G ...................... 7.00 06/01/11 546,075
500 University of Toledo, Ser 1992 A (FGIC) ............................... 5.90 06/01/20 542,380
-------- -----------
1,500 1,624,840
-------- -----------
Electric Revenue (5.5%)
500 Hamilton!, Refg 1992 Ser A (FGIC) ..................................... 6.00 10/15/12 544,120
500 Puerto Rico Electric Power Authority, Ser DD (FSA) .................... 4.50 07/01/19 474,230
-------- -----------
1,000 1,018,350
-------- -----------
Hospital Revenue (9.5%)
700 Akron Bath & Copley Joint Township Hospital District, Summa Health
Ser 1992 A ............................................................ 6.25 11/15/07 757,358
Hamilton County,
475 Bethesda Hospital Inc Ser 1986 A ..................................... 7.00 01/01/09 476,387
500 Franciscan Sisters of the Poor/Providence Hospital Ser 1992 .......... 6.875 07/01/15 538,350
-------- -----------
1,675 1,772,095
-------- -----------
Industrial Development/Pollution Control Revenue (5.2%)
400 Ashtabula County, Ashland Oil Inc Refg 1992 Ser A ..................... 6.90 05/01/10 429,604
500 Ohio Water Development Authority, Dayton Power & Light Co
--------
Collateralized Refg 1992 Ser A ........................................ 6.40 08/15/27 538,055
-----------
900 967,659
-------- -----------
Mortgage Revenue -- Single Family (9.4%)
Ohio Housing Finance Agency,
650 GNMA-Backed 1991 Ser A-1 & 2 (AMT) .................................... 6.903 03/24/31 688,681
990 Residential 1996 Ser B-2 (AMT) ........................................ 6.10 09/01/28 1,056,776
-------- -----------
1,640 1,745,457
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------- --------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (6.6%)
$ 800 Ohio Turnpike Commission, Ser 1998 B (FGIC) ............................... 4.50% 02/15/24 $ 746,240
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 480,180
-------- -----------
1,300 1,226,420
-------- -----------
Water & Sewer Revenue (16.8%)
500 Mahoning Valley Sanitary District, Refg Ser 1998 (FSA) .................... 5.125 12/15/16 513,800
800 Montgomery County, Water Ser 1992 (FGIC) .................................. 6.25 11/15/17 880,504
800 Northeast Ohio Regional Sewer District, Wastewater Impr Refg
Ser 1995 (AMBAC) .......................................................... 5.60 11/15/13 857,728
800 Ohio Water Development Authority, Water Pollution Ser 1995 (MBIA) ......... 5.60 06/01/10 862,816
-------- -----------
2,900 3,114,848
-------- -----------
Other Revenue (2.7%)
500 Cuyahoga County, The Medical Center Company Ser 1998 (AMBAC) .............. 5.125 02/15/28 498,835
-------- -----------
Refunded (5.9%)
1,000 Clermont County, Mercy Health Ser 1991 (AMBAC) ............................ 6.733 09/25/01+ 1,095,340
-------- -----------
16,615 TOTAL OHIO TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $16,398,870) .................................................................... 17,488,949
-----------
SHORT-TERM OHIO TAX-EXEMPT MUNICIPAL OBLIGATION (2.2%)
400 Ohio Water Development Authority, Sohio British Petroleum Ser 1995
-------- (Demand 12/01/98) (Identified Cost $400,000) .............................. 3.30* 05/01/22 400,000
-----------
$ 17,015 TOTAL INVESTMENTS (Identified Cost $16,798,870) (a) ................................ 96.3% 17,888,949
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 3.7 691,357
-------- -----------
NET ASSETS ......................................................................... 100.0% $18,580,306
======== ===========
</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
$1,090,114 and the aggregate gross unrealized depreciation is
$35, resulting in net unrealized appreciation of $1,090,079.
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
37
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS (93.3%)
General Obligation (6.1%)
$ 2,000 Berks County, Second Ser 1992 (FGIC) ...................................... 5.75% 11/15/12 $ 2,130,680
500 Cambria County, Ser 1998 (FGIC) ........................................... 5.50 08/15/16 529,860
600 Puerto Rico, Public Improvement Refg Ser 1992 A ........................... 6.00 07/01/14 643,338
------- -----------
3,100 3,303,878
------- -----------
Educational Facilities Revenue (12.4% )
2,000 Delaware County Authority, Villanova University Ser 1995 (AMBAC) .......... 5.80 08/01/25 2,161,320
Pennsylvania Higher Educational Facilities Authority,
1,000 Allegheny College Refg Ser 1998 A (MBIA) ................................. 5.00 11/01/22 991,690
1,000 University of Pennsylvania Ser 1998 ...................................... 4.625 07/15/30 931,680
1,000 Pennsylvania State University, Second Refg Ser 1992 ....................... 5.50 08/15/16 1,043,640
790 Swarthmore Borough Authority, Swarthmore College Ser 1992 ................. 6.00 09/15/20 858,619
655 University Pittsburgh, Cap 1992 Ser A (MBIA) .............................. 6.125 06/01/21 711,474
------- -----------
6,445 6,698,423
------- -----------
Electric Revenue (3.6% )
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ....................................................... 4.50 07/01/19 948,460
1,000 Ser GG (FSA) ............................................................. 4.75 07/01/21 978,270
------- -----------
2,000 1,926,730
------- -----------
Hospital Revenue (19.0%)
Allegheny County Hospital Development Authority,
1,000 Catholic Health East Health Ser 1998 A (AMBAC) ........................... 4.875 11/15/26 954,480
1,000 Presbyterian University Health Inc Ser 1992 B (MBIA) ..................... 6.00 11/01/12 1,088,980
2,000 Delaware County Authority, Catholic Health East Health Ser 1998 A
(AMBAC) ................................................................... 4.875 11/15/26 1,917,500
2,000 Lehigh County General Purpose Authority, Lehigh Valley Health Network
1998 Ser A (MBIA) ......................................................... 5.00 07/01/28 1,963,540
Philadelphia Hospitals & Higher Education Facilities Authority,
1,750 Chestnut Hill Hospital Ser of 1992 ....................................... 6.375 11/15/11 1,882,510
1,000 Children's Hospital of Philadelphia Ser A of 1993 ........................ 5.375 02/15/14 1,018,120
1,250 Sayre Health Care Facilities Authority, Ser 1985 (AMBAC) .................. 7.15 12/01/10 1,374,738
------- -----------
10,000 10,199,868
------- -----------
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 1,087,610
-----------
Mortgage Revenue -- Multi-Family (2.0%)
Pennsylvania Housing Finance Agency,
50 Moderate Rehab Sec 8 Assisted Issue B .................................... 9.00 08/01/01 50,530
1,000 Ser 1992-35 D (AMT) ...................................................... 6.20 04/01/25 1,051,490
------- -----------
1,050 1,102,020
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, 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 $ 2,133,400
635 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
-------
Ser C ....................................................................... 6.85 10/15/23 678,371
-----------
2,635 2,811,771
------- -----------
Public Facilities Revenue (2.3%)
1,300 Philadelphia Authority For Industrial Development, The Franklin Institute
------- Ser 1998 .................................................................... 5.20 06/15/26 1,257,490
-----------
Resource Recovery Revenue (3.9%)
1,000 Lancaster County Solid Waste Management Authority, 1998 Ser B (AMBAC) 5.375 12/15/15 1,045,580
1,000 Montgomery County Industrial Development Authority, Ser 1989 ................ 7.50 01/01/12 1,055,570
------- -----------
2,000 2,101,150
------- -----------
Student Loan Revenue (4.0%)
Pennsylvania Higher Education Assistance Agency,
1,000 1988 Ser D (AMT) (AMBAC) ................................................... 6.05 01/01/19 1,074,670
1,000 1991 Ser B (AMT) (AMBAC) ................................................... 6.854 09/01/26 1,079,910
------- -----------
2,000 2,154,580
------- -----------
Transportation Facilities Revenue (22.1%)
1,000 Guam, Highway 1992 Ser A (FSA) .............................................. 6.30 05/01/12 1,090,250
Allegheny County, Greater Pittsburgh Int'l Airport
1,000 Ser 1997 B (MBIA) .......................................................... 5.00 01/01/19 998,700
500 Ser 1992 (AMT) (FSA) ....................................................... 6.625 01/01/22 543,525
2,000 Delaware River Port Authority, Ser 1995 (FGIC) .............................. 5.50 01/01/26 2,093,020
Pennsylvania Turnpike Commission,
2,000 Ser O 1992 (FGIC) .......................................................... 6.00 12/01/12 2,172,980
2,000 Ser A 1998 (AMBAC) ......................................................... 4.75 12/01/27 1,923,880
1,000 Philadelphia Turnpike Commission, Ser A 1998 ................................ 5.00 07/01/23 973,730
1,000 Pittsburgh Public Parking Authority, Ser 1992 A (FGIC) ...................... 5.875 12/01/12 1,085,790
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A .................. 4.75 07/01/38 960,360
------- -----------
11,500 11,842,235
------- -----------
Water & Sewer Revenue (7.0%)
2,000 Philadelphia, Water & Wastewater Ser 1995 (MBIA) ............................ 6.25 08/01/11 2,322,400
2,000 Pittsburgh, Water & Sewer Authority, 1998 Ser B (FGIC) ...................... 0.00 09/01/28 439,280
1,000 West Mifflin Sanitary Sewer Municipal Authority, Ser 1998 (MBIA) ............ 5.00 08/01/23 991,530
------- -----------
5,000 3,753,210
------- -----------
Other Revenue (3.1%)
1,500 Pennsylvania Finance Authority, Cap Impr Refg Ser 1993 ...................... 6.60 11/01/09 1,674,360
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1998, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Refunded (0.6%)
$ 290 Lehigh County Industrial Development Authority, Strawbridge & Clothier
------- Refg Ser of 1991 (ETM) .................................................. 7.20% 12/15/01 $ 306,228
-----------
49,820 TOTAL PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $47,376,043) ................................................................. 50,219,553
-----------
SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.5%)
800 Philadelphia Hospital & Higher Education Facilities Authority, Children's
Hospital of Philadelphia 1992 (Demand 12/01/98) ......................... 3.25* 03/01/27 800,000
400 Philadelphia Industrial Development Authority, The Fox Chase Cancer
Center Ser 1997 (Demand 12/01/98) ....................................... 3.30* 07/01/25 400,000
1,200 York County Industrial Development Authority, Philadelphia Electric Co
------- Ser 1993 A (Demand 12/01/98) ............................................ 3.30* 08/01/16 1,200,000
-----------
2,400 TOTAL SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------
(Identified Cost $2,400,000)................................................................... 2,400,000
-----------
$52,220 TOTAL INVESTMENTS (Identified Cost $49,776,043) (a)............................... 97.8% 52,619,553
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................................... 2.2 1,188,694
-------- -----------
NET ASSETS ....................................................................... 100.0% $53,808,247
======== ===========
</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
$2,878,992 and the aggregate gross unrealized depreciation is
$35,482, resulting in net unrealized appreciation of $2,843,510.
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
40
<PAGE>
(This page has been left blank intentionally.)
41
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
---------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS :
Investments in securities, at value* ...................... $ 41,337,619 $ 103,698,454 $ 59,218,827 $ 15,041,086
Cash ...................................................... 448,994 133,549 1,347,830 204,075
Receivable for:
Investments sold ........................................ -- -- -- 230,410
Interest ................................................ 797,655 1,482,288 780,307 267,306
Shares of beneficial interest sold ...................... 60,127 922 50,656 478
Prepaid expenses .......................................... 7,626 5,981 5,857 2,736
------------ ------------- ------------ ------------
TOTAL ASSETS ............................................ 42,652,021 105,321,194 61,403,477 15,746,091
------------ ------------- ------------ ------------
LIABILITIES :
Payable for:
Investments purchased ................................... 928,215 -- -- 473,053
Shares of beneficial interest repurchased ............... -- 400 50,011 --
Dividends to shareholders ............................... 26,401 68,477 37,654 9,443
Investment management fee ............................... 12,296 31,118 18,238 4,470
Plan of distribution fee ................................ 5,270 13,337 7,817 1,916
Accrued expenses .......................................... 24,629 32,421 27,724 21,119
------------ ------------- ------------ ------------
TOTAL LIABILITIES ....................................... 996,811 145,753 141,444 510,001
------------ ------------- ------------ ------------
NET ASSETS .............................................. $ 41,655,210 $ 105,175,441 $ 61,262,033 $ 15,236,090
============ ============= ============ ============
COMPOSITION OF NET ASSETS :
Paid-in-capital ........................................... $ 38,666,179 $ 96,456,281 $ 55,352,810 $ 14,058,245
Accumulated undistributed net realized gain ............... 609,149 1,789,759 1,997,024 171,067
Net unrealized appreciation ............................... 2,379,882 6,929,401 3,912,199 1,006,778
------------ ------------- ------------ ------------
NET ASSETS .............................................. $ 41,655,210 $ 105,175,441 $ 61,262,033 $ 15,236,090
============ ============= ============ ============
*IDENTIFIED COST ........................................ $ 38,957,737 $ 96,769,053 $ 55,306,628 $ 14,034,308
============ ============= ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ............... 3,852,209 9,376,038 5,447,042 1,344,198
============ ============= ============ ============
NET ASSET VALUE PER SHARE,
(unlimited authorized shares of $.01 par value) .......... $ 10.81 $ 11.22 $ 11.25 $ 11.33
============ ============= ============ ============
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 4.17% of net asset value)** ........ $ 11.26 $ 11.69 $ 11.72 $ 11.80
============ ============= ============ ============
</TABLE>
- ---------------
** On sales of $25,000 or more, the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- ------------------ --------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
$ 17,332,154 $ 8,210,341 $ 41,015,002 $ 12,273,944 $ 17,888,949 $ 52,619,553
265,662 65,531 161,933 110,641 448,473 312,576
-- -- -- -- -- 85,000
182,481 119,816 685,498 169,434 271,175 790,348
14,928 48,387 995 4,863 9,611 106,893
3,391 1,402 8,245 4,553 3,134 5,276
-------------- ----------- ------------ ------------ ------------ ------------
17,798,616 8,445,477 41,871,673 12,563,435 18,621,342 53,919,646
-------------- ----------- ------------ ------------ ------------ ------------
-- -- -- 512,560 -- --
-- 400 -- 5,000 389 23,874
10,830 5,125 26,419 7,324 11,770 34,702
5,267 2,485 12,380 3,571 5,484 15,940
2,257 1,065 5,305 1,530 2,350 6,832
21,052 19,734 24,557 20,122 21,043 30,051
-------------- ----------- ------------ ------------ ------------ ------------
39,406 28,809 68,661 550,107 41,036 111,399
-------------- ----------- ------------ ------------ ------------ ------------
$ 17,759,210 $ 8,416,668 $ 41,803,012 $ 12,013,328 $ 18,580,306 $ 53,808,247
============== =========== ============ ============ ============ ============
$ 16,111,196 $ 7,922,710 $ 38,551,069 $ 10,767,203 $ 17,272,016 $ 50,386,015
694,269 71,135 609,501 394,742 218,211 578,722
953,745 422,823 2,642,442 851,383 1,090,079 2,843,510
-------------- ----------- ------------ ------------ ------------ ------------
$ 17,759,210 $ 8,416,668 $ 41,803,012 $ 12,013,328 $ 18,580,306 $ 53,808,247
============== =========== ============ ============ ============ ============
$ 16,378,409 $ 7,787,518 $ 38,372,560 $ 11,422,561 $ 16,798,870 $ 49,776,043
============== =========== ============ ============ ============ ============
1,587,214 778,036 3,750,154 1,053,134 1,666,037 4,825,122
$ 11.19 $ 10.82 $ 11.15 $ 11.41 $ 11.15 $ 11.15
============== =========== ============ ============ ============ ============
$ 11.66 $ 11.27 $ 11.61 $ 11.89 $ 11.61 $ 11.61
============== =========== ============ ============ ============ ============
</TABLE>
43
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENTS OF OPERATIONS
For the year ended November 30, 1998
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME :
INTEREST INCOME ............................... $2,224,143 $5,709,751 $3,371,812 $ 790,584
---------- ---------- ---------- ----------
EXPENSES
Investment management fee ..................... 143,707 366,413 222,722 51,570
Plan of distribution fee ...................... 59,039 152,886 90,485 21,596
Transfer agent fees and expenses .............. 14,021 28,846 19,471 5,648
Professional fees ............................. 23,570 27,311 25,612 23,339
Shareholder reports and notices ............... 8,542 17,735 12,284 3,660
Trustees' fees and expenses ................... 689 5,391 3,169 744
Custodian fees ................................ 2,436 5,349 3,680 1,482
Registration fees ............................. 8,018 3,633 5,978 7,972
Other ......................................... 7,571 8,679 8,603 5,619
---------- ---------- ---------- ----------
TOTAL EXPENSES .............................. 267,593 616,243 392,004 121,630
Less: expense offset .......................... (2,432) (5,341) (3,680) (1,482)
---------- ---------- ---------- ----------
NET EXPENSES ................................ 265,161 610,902 388,324 120,148
---------- ---------- ---------- ----------
NET INVESTMENT INCOME ....................... 1,958,982 5,098,849 2,983,488 670,436
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) :
Net realized gain ............................. 725,798 2,241,204 2,077,788 171,067
Net change in unrealized appreciation ......... (57,712) 248,404 (437,571) 170,653
---------- ---------- ---------- ----------
NET GAIN .................................... 668,086 2,489,608 1,640,217 341,720
---------- ---------- ---------- ----------
NET INCREASE .................................. $2,627,068 $7,588,457 $4,623,705 $1,012,156
========== ========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- --------------- ----------- -------------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C>
$ 1,022,593 $ 469,269 $2,242,378 $ 669,704 $ 999,450 $2,841,219
------------ --------- ---------- --------- ---------- ----------
66,318 30,046 144,628 43,428 64,310 184,737
27,604 12,575 58,389 16,908 25,943 78,423
9,791 4,060 19,617 4,855 8,847 17,296
27,247 26,975 24,785 23,639 23,595 24,004
5,965 2,308 11,451 2,873 5,306 13,292
912 284 2,038 619 875 2,763
1,811 1,005 2,611 1,401 1,711 3,239
3,430 3,251 6,058 6,272 2,705 4,689
4,637 4,288 6,350 4,157 4,802 9,727
------------ --------- ---------- --------- ---------- ----------
147,715 84,792 275,927 104,152 138,094 338,170
(1,811) (1,005) (2,611) (1,401) (1,711) (3,234)
------------ --------- ---------- --------- ---------- ----------
145,904 83,787 273,316 102,751 136,383 334,936
------------ --------- ---------- --------- ---------- ----------
876,689 385,482 1,969,062 566,953 863,067 2,506,283
------------ --------- ---------- --------- ---------- ----------
708,264 152,552 614,679 408,044 388,407 578,722
(248,253) (55,068) 394,703 (77,877) (29,432) 203,628
------------ --------- ---------- --------- ---------- ----------
460,011 97,484 1,009,382 330,167 358,975 782,350
------------ --------- ---------- --------- ---------- ----------
$ 1,336,700 $ 482,966 $2,978,444 $ 897,120 $1,222,042 $3,288,633
============ ========= ========== ========= ========== ==========
</TABLE>
45
<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 YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVEMBER 30, 1997
------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS :
OPERATIONS :
Net investment income ............................ $ 1,958,982 $ 2,189,141 $ 5,098,849 $ 5,412,749
Net realized gain (loss) ......................... 725,798 (109,978) 2,241,204 61,340
Net change in unrealized appreciation ............ (57,712) 271,359 248,404 1,234,202
------------ ------------ ------------- -------------
NET INCREASE ................................... 2,627,068 2,350,522 7,588,457 6,708,291
------------ ------------ ------------- -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................ (1,970,313) (2,184,122) (5,127,716) (5,399,835)
Net realized gain ................................ -- -- -- --
------------ ------------ ------------- -------------
TOTAL .......................................... (1,970,313) (2,184,122) (5,127,716) (5,399,835)
------------ ------------ ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 3,583,708 2,336,830 7,971,183 7,477,913
Reinvestment of dividends and distributions ...... 956,419 1,079,937 2,300,541 2,501,877
Cost of shares repurchased ....................... (5,432,230) (7,940,826) (11,766,093) (20,938,231)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) ........................ (892,103) (4,524,059) (1,494,369) (10,958,441)
------------ ------------ ------------- -------------
TOTAL INCREASE (DECREASE) ...................... (235,348) (4,357,659) 966,372 (9,649,985)
NET ASSETS :
Beginning of period .............................. 41,890,558 46,248,217 104,209,069 113,859,054
------------ ------------ ------------- -------------
END OF PERIOD .................................. $ 41,655,210 $ 41,890,558 $ 105,175,441 $ 104,209,069
============ ============ ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME .............. -- $ 11,331 -- $ 28,867
============ ============ ============= =============
SHARES ISSUED AND REPURCHASED:
Sold ............................................. 333,041 222,217 718,169 695,221
Reinvestment of dividends and distributions ...... 89,180 102,819 207,368 232,768
Repurchased ...................................... (506,438) (756,888) (1,061,263) (1,952,197)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) ........................ (84,217) (431,852) (135,726) (1,024,208)
============ ============ ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
<TABLE>
<CAPTION>
FLORIDA MASSACHUSETTS MICHIGAN
- --------------------------------------- --------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVMEBER 30, 1997
- ------------------- ------------------- ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C> <C>
$ 2,983,488 $ 3,374,873 $ 670,436 $ 724,955 $ 876,689 $ 986,199
2,077,788 7,528 171,067 33,483 708,264 (5,611)
(437,571) 537,792 170,653 179,559 (248,253) 274,701
------------- ------------- ------------ ------------ ------------ ------------
4,623,705 3,920,193 1,012,156 937,997 1,336,700 1,255,289
------------- ------------- ------------ ------------ ------------ ------------
(3,001,258) (3,366,826) (674,613) (722,987) (881,921) (982,775)
-- -- (26,809) -- -- --
------------- ------------- ------------ ------------ ------------ ------------
(3,001,258) (3,366,826) (701,422) (722,987) (881,921) (982,775)
------------- ------------- ------------ ------------ ------------ ------------
6,336,196 8,867,050 2,177,938 1,064,313 1,976,447 1,770,777
1,065,444 1,179,653 398,624 419,440 488,182 545,749
(12,850,195) (16,053,675) (2,212,481) (3,158,448) (4,672,568) (3,939,781)
------------- ------------- ------------ ------------ ------------ ------------
(5,448,555) (6,006,972) 364,081 (1,674,695) (2,207,939) (1,623,255)
------------- ------------- ------------ ------------ ------------ ------------
(3,826,108) (5,453,605) 674,815 (1,459,685) (1,753,160) (1,350,741)
65,088,141 70,541,746 14,561,275 16,020,960 19,512,370 20,863,111
------------- ------------- ------------ ------------ ------------ ------------
$ 61,262,033 $ 65,088,141 $ 15,236,090 $ 14,561,275 $ 17,759,210 $ 19,512,370
============= ============= ============ ============ ============ ============
-- $ 17,770 -- $ 4,177 -- $ 5,232
============= ============= ============ ============ ============ ============
569,452 824,008 193,348 97,718 178,504 164,023
95,684 109,387 35,479 38,568 44,120 50,741
(1,152,957) (1,491,135) (196,446) (291,669) (419,448) (366,507)
------------- ------------- ------------ ------------ ------------ ------------
(487,821) (557,740) 32,381 (155,383) (196,824) (151,743)
============= ============= ============ ============ ============ ============
</TABLE>
47
<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 YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVEMBER 30, 1997
------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS :
OPERATIONS :
Net investment income ............................ $ 385,482 $ 427,503 $ 1,969,062 $ 2,163,401
Net realized gain (loss) ......................... 152,552 (2,079) 614,679 150,746
Net change in unrealized appreciation ............ (55,068) 75,733 394,703 554,643
------------ ------------ ------------ ------------
NET INCREASE ................................... 482,966 501,157 2,978,444 2,868,790
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................ (388,129) (426,679) (1,980,284) (2,158,598)
Net realized gain ................................ -- -- -- --
------------ ------------ ------------ ------------
TOTAL .......................................... (388,129) (426,679) (1,980,284) (2,158,598)
------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 450,188 341,882 4,281,513 3,174,698
Reinvestment of dividends and distributions ...... 205,051 238,618 1,110,422 1,208,830
Cost of shares repurchased ....................... (1,075,759) (1,835,516) (6,107,000) (8,403,076)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (420,520) (1,255,016) (715,065) (4,019,548)
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) ...................... (325,683) (1,180,538) 283,095 (3,309,356)
NET ASSETS :
Beginning of period .............................. 8,742,351 9,922,889 41,519,917 44,829,273
------------ ------------ ------------ ------------
END OF PERIOD .................................. $ 8,416,668 $ 8,742,351 $ 41,803,012 $ 41,519,917
============ ============ ============ ============
UNDISTRIBUTED NET INVESTMENT INCOME .............. -- $ 2,647 -- $ 11,222
============ ============ ============ ============
SHARES ISSUED AND REPURCHASED:
Sold ............................................. 41,683 32,070 387,819 298,058
Reinvestment of dividends and distributions ...... 19,052 22,587 100,683 113,233
Repurchased ...................................... (99,811) (173,686) (554,108) (786,812)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (39,076) (119,029) (65,606) (375,521)
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
<TABLE>
<CAPTION>
NEW YORK OHIO PENNSYLVANIA
- --------------------------------------- --------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVEMBER 30, 1997 NOVEMBER 30, 1998 NOVMEBER 30, 1997
- ------------------- ------------------- ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C> <C>
$ 566,953 $ 627,325 $ 863,067 $ 987,729 $ 2,506,283 $ 2,231,381
408,044 10,788 388,407 (12,075) 578,722 8,207
(77,877) 215,377 (29,432) 291,150 203,628 509,480
------------ ------------ ------------ ------------ ------------ ------------
897,120 853,490 1,222,042 1,266,804 3,288,633 2,749,068
------------ ------------ ------------ ------------ ------------ ------------
(570,172) (626,041) (870,982) (985,654) (2,518,046) (2,226,117)
-- -- -- -- (8,207) (98,622)
------------ ------------ ------------ ------------ ------------ ------------
(570,172) (626,041) (870,982) (985,654) (2,526,253) (2,324,739)
------------ ------------ ------------ ------------ ------------ ------------
656,120 500,333 2,170,150 1,904,978 12,831,070 2,548,744
301,450 327,002 479,951 559,793 1,539,410 1,234,155
(1,857,636) (2,488,429) (2,897,075) (5,477,168) (5,380,740) (7,206,475)
------------ ------------ ------------ ------------ ------------ ------------
(900,066) (1,661,094) (246,974) (3,012,397) 8,989,740 (3,423,576)
------------ ------------ ------------ ------------ ------------ ------------
(573,118) (1,433,645) 104,086 (2,731,247) 9,752,120 (2,999,247)
12,586,446 14,020,091 18,476,220 21,207,467 44,056,127 47,055,374
------------ ------------ ------------ ------------ ------------ ------------
$ 12,013,328 $ 12,586,446 $ 18,580,306 $ 18,476,220 $ 53,808,247 $ 44,056,127
============ ============ ============ ============ ============ ============
-- $ 3,219 -- $ 7,915 -- $ 11,763
============ ============ ============ ============ ============ ============
58,252 46,105 195,888 177,550 1,154,976 236,669
26,721 30,087 43,444 52,107 139,044 114,454
(164,456) (230,243) (262,446) (508,953) (485,530) (670,418)
------------ ------------ ------------ ------------ ------------ ------------
(79,483) (154,051) (23,114) (279,296) 808,490 (319,295)
============ ============ ============ ============ ============ ============
</TABLE>
49
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1998
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Multi-State Municipal Series Trust (the "Fund"),
formerly Dean Witter Multi-State Municipal Series Trust, 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.
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.
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.
50
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1998, continued
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"), formerly
Dean Witter InterCapital Inc., 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.
51
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1998, 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 year ended November 30, 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% 0.15% 0.14% 0.15% 0.15%
==== ==== ==== ==== ====
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
0.15% 0.14% 0.14% 0.14% 0.15%
==== ==== ==== ==== ====
</TABLE>
For the year ended November 30, 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 .........$94,554 $219,305 $190,868 $55,613 $65,183
======= ======== ======== ======= =======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ------------ ---------- ---------- -------------
<C> <C> <C> <C> <C>
$10,799 $140,874 $ 18,592 $70,138 $129,017
======= ======== ======== ======= ========
</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.
52
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1998, 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 year ended November 30, 1998 were as
follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
-------------- -------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Purchases ......... $11,771,890 $24,254,223 $15,535,535 $4,328,314 $ 7,237,675
=========== =========== =========== ========== ===========
Sales ............. $13,588,949 $27,721,882 $23,127,460 $4,392,337 $ 9,632,448
=========== =========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
-------------- -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases ......... $ 1,584,038 $ 8,431,253 $ 3,771,880 $6,369,104 $20,892,275
=========== =========== =========== ========== ===========
Sales ............. $ 2,157,687 $10,396,072 $ 4,848,305 $6,342,118 $12,724,592
=========== =========== =========== ========== ===========
</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 year ended November 30, 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 ......... $ 579 $ 1,530 $ 931 $ 219 $ 280
====== ======= ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
<C> <C> <C> <C> <C>
$ 131 $ 600 $ 188 $ 270 $ 780
====== ======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
--------- ------------ --------- --------------- ---------
<S> <C> <C> <C> <C> <C>
Accrued Pension Liability ......... $4,085 $10,083 $6,199 $1,419 $1,819
====== ======= ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
<C> <C> <C> <C> <C>
$ 927 $ 3,970 $1,230 $1,959 $4,483
====== ======= ====== ====== ======
</TABLE>
53
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1998, continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At November 30, 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 ...... $ 366 $ 143 $ 131 $ 116 $ 17
====== ====== ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
<C> <C> <C> <C> <C>
$ 45 $ 143 $ 40 $ 15 $ 910
====== ====== ====== ====== ======
</TABLE>
5. FEDERAL INCOME TAX STATUS
During the year ended November 30, 1998, the following Series utilized their
approximate net capital loss carryovers:
<TABLE>
<S> <C>
Arizona ............ $116,700
California ......... 451,400
Florida ............ 79,700
Michigan ........... 14,000
Minnesota .......... 81,400
New Jersey ......... 5,200
New York ........... 13,300
Ohio ............... 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 Funds' next
taxable year. The Ohio Series incurred and will elect to defer net capital
losses during fiscal 1998 of approximately $1,600.
54
<PAGE>
(This page has been left blank intentionally.)
55
<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
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 0.51 0.17 0.68 (0.51) -- (0.51)
CALIFORNIA SERIES
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 0.54 0.26 0.80 (0.54) -- (0.54)
FLORIDA SERIES
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 0.52 0.28 0.80 (0.52) -- (0.52)
MASSACHUSETTS SERIES
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 0.51 0.25 0.76 (0.51) (0.02) (0.53)
MICHIGAN SERIES
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 0.51 0.25 0.76 (0.51) -- (0.51)
</TABLE>
- ---------------
+ 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) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
(AFTER EXPENSES WERE (BEFORE EXPENSES WERE
ASSUMED) ASSUMED)
---------------------------- ----------------------------
NET ASSET NET ASSETS
VALUE END OF NET NET PORTFOLIO
END OF TOTAL PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- ------------- ------------- ----------- --------------- ------------ --------------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.42 (7.16)% $ 47,628 0.62% 5.33% 0.63% 5.32% 11%
10.65 19.21 50,290 0.65 (1) 5.33 0.65 (1) 5.33 6
10.59 4.63 46,248 0.65 (1) 5.12 0.65 (1) 5.12 9
10.64 5.64 41,891 0.66 (1) 5.04 0.66 (1) 5.04 2
10.81 6.56 41,655 0.65 (1) 4.77 0.65 (1) 4.77 30
9.38 (8.65) 112,450 0.58 5.59 0.59 5.58 12
10.67 20.15 117,769 0.60 (1) 5.50 0.60 (1) 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
11.22 7.58 105,175 0.59 (1) 4.87 0.59 (1) 4.87 24
9.60 (7.29) 71,458 0.61 5.34 0.62 5.33 3
10.88 19.54 74,058 0.63 (1) 5.34 0.63 (1) 5.34 8
10.86 5.03 70,542 0.62 (1) 5.13 0.62 (1) 5.13 25
10.97 6.10 65,088 0.62 5.02 0.62 5.02 7
11.25 7.58 61,262 0.62 (1) 4.69 0.62 (1) 4.69 26
9.60 (7.71) 15,507 0.50 5.35 0.78 5.07 10
10.97 20.58 16,954 0.50 (1) 5.39 0.79 (1) 5.11 7
10.92 5.07 16,021 0.50 (1) 5.23 0.82 (1) 4.91 11
11.10 6.68 14,561 0.79 (1) 4.85 0.81 (1) 4.83 10
11.33 7.03 15,236 0.83 (1) 4.55 0.83 (1) 4.55 31
9.46 (8.07) 19,831 0.50 5.44 0.75 5.19 9
10.81 20.69 21,673 0.50 (1) 5.49 0.77 (1) 5.22 22
10.78 5.09 20,863 0.50 (1) 5.27 0.76 (1) 5.01 5
10.94 6.52 19,512 0.72 (1) 4.95 0.74 (1) 4.93 3
11.19 7.23 17,759 0.78 (1) 4.63 0.78 (1) 4.63 40
</TABLE>
57
<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
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 0.48 0.13 0.61 (0.49) -- (0.49)
NEW JERSEY SERIES
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 0.53 0.27 0.80 (0.53) -- (0.53)
NEW YORK SERIES
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 0.52 0.30 0.82 (0.52) -- (0.52)
OHIO SERIES
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 0.52 0.21 0.73 (0.52) -- (0.52)
PENNSYLVANIA SERIES
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 0.53 0.18 0.71 (0.53) -- (0.53)
</TABLE>
- ---------------
+ 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) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
(AFTER EXPENSES WERE (BEFORE EXPENSES WERE
ASSUMED) ASSUMED)
---------------------------- ----------------------------
NET ASSET NET ASSETS
VALUE END OF NET NET PORTFOLIO
END OF TOTAL PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- ------------- ------------- ----------- --------------- ------------ --------------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.28 (8.42)% $ 9,793 0.50% 5.41% 0.91% 5.00% 14%
10.61 20.60 11,230 0.50 (1) 5.35 0.98 (1) 4.88 3
10.60 5.21 9,923 0.50 (1) 5.21 0.96 (1) 4.75 5
10.70 5.76 8,742 0.94 (1) 4.68 0.97 (1) 4.65 --
10.82 5.77 8,417 0.99 (1) 4.49 0.99 (1) 4.49 20
9.47 (7.96) 45,497 0.64 5.38 0.65 5.37 6
10.73 19.60 47,889 0.67 (1) 5.42 0.67 (1) 5.42 14
10.70 4.93 44,829 0.66 (1) 5.23 0.66 (1) 5.23 5
10.88 6.99 41,520 0.66 5.02 0.66 5.02 14
11.15 7.49 41,803 0.67 (1) 4.77 0.67 (1) 4.77 21
9.46 (8.96) 14,522 0.50 5.48 0.82 5.16 14
10.88 21.40 14,388 0.50 (1) 5.43 0.85 (1) 5.09 24
10.90 5.46 14,020 0.50 (1) 5.25 0.84 (1) 4.91 22
11.11 7.06 12,586 0.82 (1) 4.84 0.84 (1) 4.82 4
11.41 7.50 12,013 0.84 (1) 4.57 0.84 (1) 4.57 33
9.42 (8.34) 20,693 0.50 5.31 0.71 5.10 18
10.80 21.02 23,104 0.50 (1) 5.42 0.77 (1) 5.16 19
10.77 5.04 21,207 0.50 (1) 5.23 0.75 (1) 4.98 32
10.94 6.67 18,476 0.73 (1) 4.90 0.74 (1) 4.89 5
11.15 6.84 18,580 0.75 (1) 4.70 0.75 (1) 4.70 37
9.56 (7.84) 47,557 0.64 5.37 0.66 5.35 19
10.85 19.65 53,935 0.66 (1) 5.29 0.66 (1) 5.29 8
10.85 5.27 47,055 0.65 (1) 5.17 0.65 (1) 5.17 --
10.97 6.53 44,056 0.66 5.01 0.66 5.01 8
11.15 6.60 53,808 0.64 4.75 0.64 4.75 26
</TABLE>
59
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of 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 (constituting the Morgan
Stanley Dean Witter Multi-State Municipal Series Trust, formerly Dean Witter
Multi-State Municipal Series Trust, hereafter referred to as the "Fund") at
November 30, 1998, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in
the period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
January 12, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
1998 FEDERAL INCOME TAX NOTICE (unaudited)
During the year ended November 30, 1998, each Series paid to its shareholders the following per share amounts from tax-exempt
income:
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- ------------ ------------ --------- --------------- ---------- ----------- ------------ ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.51 $ 0.54 $ 0.52 $ 0.51 $ 0.51 $ 0.49 $ 0.53 $ 0.52 $ 0.52 $ 0.53
During the year ended November 30, 1998, the Massachusetts Series paid to its shareholders long-term capital gains of $0.02 per
share, and the Pennsylvania Series paid to its shareholders long-term capital gains of $0.002 per share.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
60
<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 Stanely Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
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
ANNUAL REPORT
November 30, 1998
