<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 1999
Two World Trade Center,
New York, New York 10048
DEAR SHAREHOLDER:
We are pleased to present the semiannual report on the operations of Morgan
Stanley Dean Witter Multi-State Municipal Series Trust for the period ended May
31, 1999.
The financial markets have begun to recover from last year's global economic
difficulties. The turmoil which included the Asian crisis, the Russian debt
default and the near collapse of a major U.S. hedge fund has given way to more
normal financial conditions. The major catalyst for this return to stability
was the liquidity provided by the Federal Reserve Board's 75-basis-point
reduction in the federal-funds rate during the fourth quarter of 1998.
These international economic problems precipitated a "flight to quality" rally
in fixed-income securities and U.S. Treasury yields reached 30-year lows in
October 1998. As the world markets recovered, foreign investors repatriated
funds and Treasury yields began to rise. Interest rates also rose in response
to surprisingly robust economic domestic growth reported over the second half
of 1998. The bond market became concerned that the central bank might become
more restrictive by taking back some of the liquidity provided during the
crisis. On June 30, 1999 the Federal Reserve Board raised the Federal Funds
rate 25 basis points to 5.00 percent.
MUNICIPAL MARKET CONDITIONS
During 1998 municipal yields were less volatile than Treasury yields. This
pattern of stability continued into 1999. Long-term insured municipal index
yields stood at 5.30 percent at the end of May only 30 basis points higher than
November 1998. In contrast, Treasury bond yields rose 80 basis points, from
5.05 to 5.85 percent. During the past six months, the yield pickup for
extending tax-exempt maturities from one to 30 years averaged 225 basis points.
The modest rally of municipals during 1998 created a more favorable
relationship relative to Treasuries. Municipals underperformed Treasuries and
the ratio of municipal yields to Treasury yields climbed to 99 percent
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 1999, continued
by December. The higher the ratio, the more attractive municipals are relative
to Treasuries. Municipals have outperformed Treasuries this year and the ratio
declined to 91 percent by May. The high-to-low annual range of
municipal/Treasury yields for the past five years has averaged from 93 to 84
percent.
In addition to lagging 1998's Treasury rally, municipals also experienced a
glut of new-issue supply. Underwriting volume of $284 billion was up 28 percent
from the prior year and approached 1993's record. Issuers actively refinanced
at lower interest rates and refundings were 29 percent of total volume. This
year's rise in interest rates has reduced the amount of refunding activity.
Refunding volume was down 45 percent in the first five months of 1999. Total
underwriting declined 24 percent.
30-YEAR BOND YIELDS 1994-1999
[LINE GRAPH]
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%
12/31/98 5.05 5.10 99.02%
01/31/99 5.00 5.09 98.23%
02/28/99 5.10 5.58 91.40%
03/31/99 5.15 5.63 91.47%
04/30/99 5.20 5.66 91.87%
05/31/99 5.30 5.83 90.91%
Source: Municipal Market Data - A Division of Thomson Financial Municipal Group
PORTFOLIO STRUCTURE
The average duration, a measure of sensitivity to interest-rate changes, of the
10 single-state portfolios that make up the Morgan Stanley Dean Witter
Multi-State Municipal Series Trust was 7 years. At the end of May, the
portfolio's average bond maturity was 18 years and average call protection was
7 years. Individual portfolio holdings of refunded bonds ranged from 0 to 19
percent of net assets. These bonds have been refinanced and will be redeemed on
the dates shown in the individual state portfolios.
2
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 1999, continued
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.
LOOKING AHEAD
The combination of a "flight to quality" and the flood of new municipal issues
made the municipal-to- Treasury yield relationship more favorable late last
year than it had been in the previous 10 years. Although municipals have
outperformed Treasuries thus far in 1999, we believe that municipals still
offer investors considerable value versus their historical relationship with
Treasuries.
On May 1, 1999, Mitchell M. Merin was named President of the Morgan Stanley
Dean Witter Funds. Mr. Merin is also the President and Chief Operating Officer
of Asset Management for Morgan Stanley Dean Witter & Co. and President, Chief
Executive Officer and Director of Morgan Stanley Dean Witter Advisors Inc., the
Fund's investment manager. He also serves as Chairman, Chief Executive Officer
and Director of the Fund's distributor and transfer agent.
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 /s/ MITCHELL M. MERIN
- -------------------------- ---------------------
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
3
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
PORTFOLIO SUMMARY May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
SERIES SERIES SERIES SERIES
----------- ------------ ----------- --------------
<S> <C> <C> <C> <C>
Credit Ratings (1):
Aaa or AAA .................................. 49% 57% 77% 58%
Aa or AA .................................... 32 19 10 20
A or A ...................................... 19 18 6 7
Baa or BBB .................................. -- 6 7 15
Ba or BB .................................... -- -- -- --
Non-Rated (2) ............................... -- -- -- --
Long-Term Portfolio Distribution by Call Date
1999 ...................................... -- -- 4% --
2000 ...................................... 5% -- 1 4%
2001 ...................................... 7 14% 9 6
2002 ...................................... 28 20 25 15
2003 ...................................... 5 10 4 19
2004 ...................................... 10 -- -- 4
2005 ...................................... 3 -- 5 8
2006 ...................................... -- 8 6 6
2007 ...................................... -- 2 6 3
2008 ...................................... 20 19 8 21
2009 ...................................... 5 8 8 3
2010+ ..................................... 17 19 24 11
Average Weighted (3):
Maturity .................................. 17 Years 18 Years 19 Years 18 Years
Call Protection ........................... 7 Years 8 Years 8 Years 6 Years
Modified Duration ......................... 7 Years 8 Years 7 Years 7 Years
Per Share Net Asset Value:
November 30, 1998 ......................... $ 10.81 $ 11.22 $ 11.25 $ 11.33
May 31, 1999 .............................. $ 10.46 $ 10.83 $ 10.71 $ 11.02
Distributions (4) ........................... $ 0.39 $ 0.45 $ 0.56 $ 0.36
Total Return (5):
6 months ended 05/31/99 ................... 0.38% 0.57% 0.19% 0.40%
12 months ended 05/31/99 .................. 3.79% 4.40% 3.71% 3.60%
</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 six months ended May 31, 1999.
(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. Calculated based on the net asset value as of the last
business day of the period.
4
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
SERIES SERIES SERIES SERIES SERIES SERIES
- ------------- ----------- ------------ ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
82% 45% 65% 48% 68% 69%
15 37 17 11 16 14
3 11 7 32 6 12
-- 7 8 9 10 4
-- -- -- -- -- --
-- -- 3 -- -- 1
-- -- 5% -- 3% 1%
-- 3% -- -- -- --
7% 5 9 -- 14 13
30 24 25 14% 28 26
10 30 7 10 2 12
-- -- -- 5 -- --
12 -- 12 14 15 4
3 4 7 23 -- 4
-- -- 3 5 6 4
30 22 22 15 21 23
5 7 7 5 3 6
3 5 3 9 8 7
17 Years 17 Years 19 Years 18 Years 17 Years 19 Years
6 Years 6 Years 6 Years 7 Years 6 Years 6 Years
7 Years 7 Years 7 Years 7 Years 6 Years 7 Years
$11.19 $10.82 $11.15 $11.41 $11.15 $11.15
$10.62 $10.55 $10.87 $10.85 $10.82 $10.82
$ 0.65 $ 0.31 $ 0.35 $ 0.60 $ 0.38 $ 0.36
0.66% 0.33% 0.55% 0.32% 0.42% 0.28%
4.32% 3.23% 4.13% 3.85% 3.97% 3.69%
</TABLE>
5
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
ARIZONA TAX-EXEMPT MUNICIPAL BONDS (93.2%)
General Obligation (12.5%)
$ 1,000 Paradise Valley Unified School District #69, Ser B 1995 (MBIA) ............ 5.25 % 07/01/15 $ 1,009,380
Phoenix,
1,000 Refg Ser 1992 ............................................................ 6.375 07/01/13 1,082,570
1,000 Ser 1999 B ............................................................... 4.50 07/01/20 913,320
1,000 Tucson, Refg Ser 1998 ..................................................... 5.50 07/01/18 1,053,410
1,000 Puerto Rico, Public Improvement Ser 1998 (MBIA) ........................... 6.00 07/01/16 1,123,810
-------- -----------
5,000 5,182,490
-------- -----------
Educational Facilities Revenue (5.1%)
1,000 Arizona Board of Regents, Arizona State University Ser 1992 A ............. 5.50 07/01/19 1,028,290
1,000 University of Arizona, Telecommunications Ser 1991 COPs ................... 6.50 07/15/12 1,083,390
-------- -----------
2,000 2,111,680
-------- -----------
Electric Revenue (6.6%)
820 Salt River Project Agricultural Improvement & Power District,
Refg 1992 Ser D .......................................................... 6.25 01/01/27 873,891
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ....................................................... 4.50 07/01/19 922,720
1,000 Power Ser GG (FSA) ....................................................... 4.75 07/01/21 943,760
-------- -----------
2,820 2,740,371
-------- -----------
Hospital Revenue (10.3%)
Maricopa County Industrial Development Authority,
2,000 Catholic Healthcare West 1992 Ser A (MBIA)................................ 5.75 07/01/11 2,127,100
1,000 Mayo Clinic Ser 1998 ..................................................... 5.25 11/15/37 972,620
1,100 Pima County Industrial Development Authority, Carondelet Health Care
- --------- Corp Ser 1993 (MBIA) ..................................................... 5.25 07/01/13 1,141,074
-----------
4,100 4,240,794
- --------- -----------
Industrial Development/Pollution Control Revenue (9.2%)
1,000 Greenlee County Industrial Development Authority, Phelps Dodge Corp
Refg 1994 ................................................................ 5.45 06/01/09 1,026,330
1,000 Mohave County Industrial Development Authority, Citizens Utilities Co
1993 Ser B (AMT) ......................................................... 5.80 11/15/28 1,020,810
1,700 Santa Cruz County Industrial Development Authority, Citizens Utilities Co
- --------- Ser 1991 (AMT) ........................................................... 7.15 02/01/23 1,749,742
-----------
3,700 3,796,882
- --------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Multi-Family (2.4%)
$ 925 Pima County Industrial Development Authority, Rancho Mirage Ser 1992
-------- (AMT) (AGRC) .......................................................... 7.05 % 04/01/22 $ 985,569
-----------
Mortgage Revenue -- Single Family (2.4%)
1,000 Puerto Rico Housing Finance Corporation, Homeownership GNMA-Backed
-------- 1998 Ser A (AMT) ...................................................... 5.10 12/01/31 989,190
-----------
Public Facilities Revenue (4.9%)
Arizona,
500 Refg Ser 1992 B COPs (AMBAC) .......................................... 6.25 09/01/10 537,220
500 Ser 1991 COPs (FSA) ................................................... 6.25 09/01/11 532,270
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------- (AMBAC) ............................................................... 5.00 07/01/28 971,590
-----------
2,000 2,041,080
-------- -----------
Transportation Facilities Revenue (9.9%)
1,000 Phoenix, Street & Highway User Refg Ser 1993 ........................... 5.125 07/01/11 1,016,420
Tucson,
1,000 Street & Highway User Sr Lien Refg Ser 1993 ........................... 5.50 07/01/09 1,047,300
1,000 Street & Highway User Sr Lien Refg Ser 1996 (MBIA) .................... 6.00 07/01/10 1,111,320
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ............. 4.75 07/01/38 915,730
-------- -----------
4,000 4,090,770
-------- -----------
Water & Sewer Revenue (21.7%)
1,000 Arizona Wastewater Management Authority, Wastewater Ser 1992 A
(AMBAC) ............................................................... 5.95 07/01/12 1,068,330
1,000 Arizona Water Infrastructure Finance Authority, Water Quality Ser 1998 A
(MBIA) ................................................................ 5.00 07/01/17 980,130
1,000 Chandler, Water & Sewer Refg Ser 1992 (FGIC) ........................... 6.25 07/01/13 1,078,220
1,000 Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) ....................... 6.50 07/01/22 1,102,830
1,000 Mesa, Utility Ser 1998 (MBIA) .......................................... 4.50 07/02/18 913,600
Phoenix Civic Improvement Corporation,
1,000 Wastewater Jr Lien Ser 1994 ........................................... 5.45 07/01/19 1,019,370
1,000 Wastewater Refg Ser 1993 .............................................. 4.75 07/01/23 935,930
1,000 Pima County Metropolitan Domestic Water Improvement District,
Refg Ser 1999(FGIC) ................................................... 4.875 01/01/19 962,690
1,000 Scottsdale Water & Sewer Refg Ser 1998 E ............................... 4.50 07/01/23 900,620
-------- -----------
9,000 8,961,720
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------- --------------
<S> <C> <C> <C> <C>
Refunded (8.2%)
$ 1,150 Arizona Health Facilities Authority, Phoenix Baptist Hospital & Medical
Center Inc & Medical Environments Inc Ser 1992 (MBIA) (ETM) .............. 6.25% 09/01/11 $ 1,252,649
2,000 Tucson, Water Refg Ser 1991 ............................................... 6.50 07/01/01+ 2,139,240
-------- -----------
3,150 3,391,889
-------- -----------
37,695 TOTAL ARIZONA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $37,112,936) .................................................................... 38,532,435
-----------
SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.1%)
1,100 Maricopa County, Arizona Public Service Co 1994C (Demand 06/01/99) ........ 3.35* 05/01/29 1,100,000
1,000 Tempe, Excise Tax Ser 1998 (Demand 06/01/99) .............................. 3.35* 07/01/23 1,000,000
-------- -----------
2,100 TOTAL SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $2,100,000)...................................................................... 2,100,000
-----------
$ 39,795 TOTAL INVESTMENTS (Identified Cost $39,212,936) (a) ................................ 98.3% 40,632,435
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 1.7 709,659
-------- -----------
NET ASSETS ......................................................................... 100.0% $41,342,094
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
* 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
$1,609,397 and the aggregate gross unrealized depreciation is $189,898,
resulting in net unrealized appreciation of $1,419,499.
Bond Insurance:
- ---------------
AGRC Asset Guaranty Reinsurance Company.
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
CALIFORNIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (92.1%)
General Obligation (10.4%)
California,
$ 2,000 Various Purpose 04/01/93 (FSA) ........................................... 5.50% 04/01/19 $ 2,049,980
2,000 Refg Dtd 10/01/98 (MBIA) ................................................. 4.50 10/01/28 1,771,160
2,500 Carlsbad Unified School District, Ser 1997 (FGIC) ......................... 0.00 11/01/16 1,022,000
3,000 Los Angeles Unified School District, 1997 Ser B (FGIC) .................... 5.00 07/01/23 2,909,940
3,000 Mojave Water Agency, Impr Dist M Morongo Basin Pipeline Refg
-------- Ser 1996 (FGIC) .......................................................... 5.80 09/01/22 3,191,880
------------
12,500 10,944,960
-------- ------------
Educational Facilities Revenue (7.3%)
California Educational Facilities Authority,
2,000 Carnegie Institution of Washington 1993 Ser A ............................ 5.60 10/01/23 2,070,980
1,360 Loyola Marymount University Refg Ser 1992 ................................ 6.00 10/01/14 1,424,178
1,500 University of San Diego Refg Ser 1998 (AMBAC) ............................ 4.75 10/01/15 1,461,630
2,500 University of Southern California Ser 1993 B ............................. 5.80 10/01/15 2,663,850
-------- ------------
7,360 7,620,638
-------- ------------
Electric Revenue (7.8%)
2,000 Los Angeles Department of Water & Power, Refg Issue of 1993
(Secondary AMBAC) ........................................................ 5.375 09/01/23 2,024,720
1,000 Sacramento Municipal Utility District, Refg 1993 Ser D (MBIA) ............. 5.625 11/15/15 1,039,670
5,000 Southern California Public Power Authority, Mead - Phoenix (AMBAC) ........ 5.15 07/01/15 5,132,150
-------- ------------
8,000 8,196,540
-------- ------------
Hospital Revenue (11.0%)
California Health Facilities Financing Authority,
2,000 Catholic Health Corp Ser 1992 A (MBIA) ................................... 6.00 07/01/13 2,148,720
3,000 Scripps Memorial Hospitals Ser 1992 A (MBIA) ............................. 6.375 10/01/22 3,259,380
2,000 California Statewide Communities Development Authority,
Cedars-Sinai Medical Center Ser 1992 COPs ................................ 6.50 08/01/12 2,259,580
4,000 Duarte, City of Hope National Medical Center Ser 1999A COPs ............... 5.25 04/01/19 3,908,160
-------- ------------
11,000 11,575,840
-------- ------------
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 1,649,670
------------
Mortgage Revenue - Multi-Family (2.0%)
2,000 California Housing Finance Agency, Rental II 1992 Ser B ................... 6.70 08/01/15 2,139,220
-------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
CALIFORNIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- -------- ---------- ------------
<S> <C> <C> <C> <C>
Mortgage Revenue - Single Family (4.7%)
$ 690 California Housing Finance Agency, Home 1991 Ser C (AMT) (MBIA) ............. 7.00 % 08/01/23 $ 730,827
2,880 California Rural Home Finance Authority, 1997 Ser A-2 (AMT) ................. 7.00 09/01/29 3,213,994
935 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
-------- Ser C ...................................................................... 6.85 10/15/23 988,473
-----------
4,505 4,933,294
-------- -----------
Public Facilities Revenue (6.7%)
5,000 Anaheim Public Financing Authority, 1997 Ser C (FSA) ........................ 0.00 09/01/26 1,165,650
2,000 San Diego County, Downtown Courthouse Refg 1998 COPs (AMBAC) ................ 4.50 05/01/23 1,789,380
2,000 San Francisco Redevelopment Agency, Ser 1998 (FSA) .......................... 5.00 07/01/25 1,929,300
2,000 San Jose Financing Authority, Convention Center Refg 1993 Ser C ............. 6.375 09/01/13 2,113,020
-------- -----------
11,000 6,997,350
-------- -----------
Tax Allocation Revenue (1.0%)
1,000 Industry Urban-Development Agency, Transportation-Distribution-Industrial
-------- Redev Proj #3 1992 Refg .................................................... 6.90 11/01/16 1,080,760
-----------
Transportation Facilities Revenue (10.1%)
2,000 Alameda Corridor Transportation Authority, Sr Ser 1999 A (MBIA) ............. 5.25 10/01/21 2,010,700
2,000 Los Angeles County Transportation Commission, Sales Tax Ser 1991-B .......... 6.50 07/01/13 2,140,920
2,000 San Francisco Bay Area Rapid Transit District, Sales Tax Ser 1998
(AMBAC) .................................................................... 4.75 07/01/23 1,866,680
San Joaquin Hills Transportation Corridor Agency,
3,000 Toll Road Refg Ser 1997 A (MBIA) ........................................... 0.00 01/15/26 723,990
2,000 Toll Road Refg Ser 1997 A (MBIA) ........................................... 5.25 01/15/30 2,001,360
2,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A .................. 4.75 07/01/38 1,831,460
-------- -----------
13,000 10,575,110
-------- -----------
Water & Sewer Revenue (14.2%)
1,000 Contra Costa Water Authority, 1992 Ser E (AMBAC) ............................ 6.25 10/01/12 1,151,190
East Bay Municipal Utility District,
3,000 Water Refg Ser 1992 ........................................................ 6.00 06/01/20 3,174,270
2,000 Water Refg Ser 1998 (MBIA) ................................................. 4.75 06/01/34 1,831,620
3,000 Eastern Municipal Water District, Water & Sewer Refg Ser 1998 A COPs
(FGIC) ..................................................................... 4.75 07/01/23 2,800,020
2,000 Metropolitan Water District of Southern California, Waterworks
1997 Ser A ................................................................. 5.00 07/01/26 1,928,060
2,000 San Francisco Public Utilities Commission, Water 1992 Refg Ser A ............ 6.00 11/01/15 2,101,940
2,000 Stockton, Wastewater 1998 Ser A COPs (MBIA) ................................. 5.00 09/01/23 1,939,700
-------- -----------
15,000 14,926,800
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
CALIFORNIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ----------- ------------- ---------------
<S> <C> <C> <C> <C>
Refunded (15.3%)
$ 4,000 California Educational Facilities Authority, Claremont Colleges
Ser 1992 ................................................................ 6.375% 05/01/02+ $ 4,352,960
2,000 Kings River Conservation District, Pine Flat Power Ser D ................. 6.00 01/01/01+ 2,112,280
2,000 Los Angeles County, 1991 Master Refg COPs ................................ 6.708 05/01/01+ 2,139,660
4,000 San Diego County Water Authority, Ser 1991-B COPs (MBIA) ................. 6.30 05/01/06+ 4,482,360
2,700 Torrance, Refg 1991 COPs ................................................. 6.80 07/01/01+ 2,922,588
-------- ------------
14,700 16,009,848
-------- ------------
101,565 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $92,259,723) .................................................................... 96,650,030
------------
SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (6.0%)
1,500 California Statewide Communities Development Authority, John Muir/
Mt Diablo Health System Ser 1997 COPs (AMBAC) (Demand 06/01/99) ......... 2.95* 08/15/27 1,500,000
4,800 Newport Beach, Hoag Memorial Hospital/Presbyterian Ser 1992
-------- (Demand 06/01/99) ....................................................... 3.25* 10/01/22 4,800,000
------------
6,300 TOTAL SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $6,300,000)...................................................................... 6,300,000
------------
$107,865 TOTAL INVESTMENTS (Identified Cost $98,559,723) (a)................................. 98.1% 102,950,030
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 1.9 2,011,926
-------- ------------
NET ASSETS ......................................................................... 100.0% $104,961,956
======== ============
</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
$5,032,405 and the aggregate gross unrealized depreciation is
$642,098, resulting in net unrealized appreciation of $4,390,307.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
FLORIDA TAX-EXEMPT MUNICIPAL BONDS (93.9%)
General Obligation (2.7%)
$ 1,500 Florida Board of Education, Capital Outlay Refg Ser 1992 A ................... 6.40 % 06/01/19 $ 1,608,225
-------- -----------
Educational Facilities Revenue (2.7%)
1,500 Volusia County Educational Facilities Authority, Embry-Riddle
-------- Aeronautical University Ser 1996 A .......................................... 6.125 10/15/16 1,583,625
-----------
Electric Revenue (16.7%)
2,000 Jacksonville Electric Authority, St Johns River Power Park Issue 2 Ser 7 ..... 5.50 10/01/14 2,073,160
Lakeland,
4,000 Electric & Water Refg Ser 1999 A (MBIA) ..................................... 0.00 10/01/14 1,838,960
1,000 Electric & Water Refg Ser 1999 B (FSA) ...................................... 6.525 10/01/14 1,125,250
1,000 Orlando Utilities Commission, Refg Ser 1993 A ................................ 5.25 10/01/14 1,015,550
Puerto Rico Electric Power Authority,
2,000 Power Ser DD (FSA) .......................................................... 4.50 07/01/19 1,845,440
2,000 Power Ser O ................................................................. 5.00 07/01/12 1,999,840
-------- -----------
12,000 9,898,200
-------- -----------
Hospital Revenue (12.4%)
1,000 Alachua County Health Facilities Authority, Shands Teaching Hospital &
Clinics Ser 1996 A (MBIA) ................................................... 6.25 12/01/11 1,163,910
1,000 Jacksonville, University Medical Center Inc Ser 1992 (Connie Lee) ............ 6.60 02/01/21 1,074,250
1,000 Orange County Health Facilities Authority, Adventist Health/Sunbelt
Ser 1995 (AMBAC) ............................................................ 5.25 11/15/20 996,150
945 Polk County Industrial Development Authority, Winter Haven Hospital
1985 Ser 2 (MBIA) ........................................................... 6.25 09/01/15 1,027,801
2,000 Sarasota County Public Hospital Board, Sarasota Memorial Hospital
Refg Ser 1998 B (MBIA) ...................................................... 5.25 07/01/24 2,022,240
1,000 Tampa Health System, Catholic Health East Health Ser 1998 A-1 (MBIA) ......... 5.50 11/15/14 1,060,040
-------- -----------
6,945 7,344,391
-------- -----------
Industrial Development/Pollution Control Revenue (9.0%)
Citrus County,
500 Florida Power Corp Refg Ser 1992 B .......................................... 6.35 02/01/22 536,805
2,000 Florida Power Corp Refg Ser 1992 A .......................................... 6.625 01/01/27 2,136,880
1,500 St Johns County Industrial Development Authority, Professional Golf Hall
of Fame Ser 1996 (MBIA) ..................................................... 5.80 09/01/16 1,589,820
1,000 St Lucie County, Florida Power & Light Co Ser 1992 (AMT) ..................... 6.70 05/01/27 1,074,750
-------- -----------
5,000 5,338,255
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Single Family (3.2%)
$ 295 Brevard County Housing Finance Authority, Refg Ser 1991 B (FSA) ........... 7.00 % 03/01/13 $ 309,057
265 Florida Housing Finance Agency, GNMA Collateral 1990 Ser G-1 (AMT) ........ 7.90 03/01/22 277,810
1,230 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
------- Ser C .................................................................... 6.85 10/15/23 1,300,344
-----------
1,790 1,887,211
------- -----------
Public Facilities Revenue (9.0%)
1,000 Manatee County School Board, COPs (MBIA) .................................. 4.875 07/01/18 960,910
1,000 Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) ............... 6.15 10/01/20 1,079,500
3,000 Palm Beach County, Criminal Justice Ser 1997 (FGIC) ....................... 5.75 06/01/13 3,281,790
------- -----------
5,000 5,322,200
------- -----------
Resource Recovery Revenue (1.8%)
1,000 Lee County, Solid Waste Ser 1991 A (AMT) (MBIA) ........................... 6.50 10/01/13 1,070,320
------- -----------
Transportation Facilities Revenue (19.0%)
1,000 Dade County, Aviation 1992 Ser B (AMT) (MBIA) ............................. 6.60 10/01/22 1,088,490
Greater Orlando Aviation Authority,
1,000 Ser 1997 (AMT) (FGIC) .................................................... 5.75 10/01/11 1,076,030
750 Ser 1992 A (AMT) (FGIC) .................................................. 6.50 10/01/12 813,930
1,000 Hillsborough County Aviation Authority, Tampa Int'l Airport
Refg Ser 1993 B (FGIC) ................................................... 5.60 10/01/19 1,033,290
1,500 Lee County, Refg Ser 1991 (AMBAC) ......................................... 6.00 10/01/17 1,563,675
3,000 Mid-Bay Bridge Authority, Refg Ser 1993 A (AMBAC) ......................... 5.95 10/01/22 3,204,000
1,500 Osceola County, Osceola Parkway (MBIA) .................................... 6.10 04/01/17 1,604,655
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 915,730
------- -----------
10,750 11,299,800
------- -----------
Water & Sewer Revenue (14.0%)
2,000 Dade County, Water & Sewer Ser 1995 (FGIC) ................................ 5.50 10/01/25 2,057,760
1,500 Florida Governmental Utility Authority, Golden Gate Ser 1999 (AMBAC) ...... 5.25 07/01/18 1,507,935
2,000 Lee County, Water & Sewer 1999 Ser A (AMBAC) .............................. 4.75 10/01/23 1,858,160
1,000 Sunrise, Utility Refg Ser 1998 (AMBAC) .................................... 5.50 10/01/18 1,053,800
2,000 Tampa Bay, Water Utility Ser 1998 B (FGIC) ................................ 4.75 10/01/27 1,844,940
------- -----------
8,500 8,322,595
------- -----------
Other Revenue (1.6%)
1,000 Miami-Dade County, Courthouse Center Refg Ser 1998 B (AMBAC) .............. 4.75 04/01/18 945,140
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
Refunded (1.8%)
$ 1,000 South Broward Hospital District, Ser 1991 B & C (AMBAC) .......... 6.611% 05/01/01+ $ 1,068,060
------- -----------
55,985 TOTAL FLORIDA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $53,312,509)................................................................. 55,688,022
-----------
SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATION (4.6%)
2,700 Escambia County, Gulf Power Co Ser 1997 (Demand 06/01/99)
------- (Identified Cost $2,700,000)...................................... 3.45* 07/01/22 2,700,000
-----------
$58,685 TOTAL INVESTMENTS (Identified Cost $56,012,509) (a)........................... 98.5% 58,388,022
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............................... 1.5 898,255
-------- -----------
NET ASSETS ................................................................... 100.0% $59,286,277
======== ===========
</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
$2,703,695 and the aggregate gross unrealized depreciation is
$328,182, resulting in net unrealized appreciation of $2,375,513.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
Connie Lee Connie Lee Insurance Company -- A wholly owned subsidiary of AMBAC
Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MASSACHUSETTS SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS (94.2%)
General Obligation (3.8%)
$ 500 Massachusetts, Refg 1992 Ser B ......................................... 6.50 % 08/01/08 $ 571,855
-------- -----------
Educational Facilities Revenue (26.2%)
Massachusetts Health & Educational Facilities Authority,
400 Boston University 1991 Ser K & L (MBIA) ............................... 6.66 10/01/31 429,604
500 Brandeis University 1998 Ser I (MBIA) ................................. 4.75 10/01/28 456,490
400 Suffolk University Ser B (Connie Lee) ................................. 6.25 07/01/12 427,664
300 Suffolk University Ser C (Connie Lee) ................................. 5.75 07/01/26 314,475
500 University of Massachusetts Foundation Inc/Medical School Research
Ser A (Connie Lee) ................................................... 6.00 07/01/23 534,760
Massachusetts Industrial Finance Agency,
500 Babson College Ser 1998 A (MBIA) ...................................... 4.75 10/01/28 456,490
500 College of Holy Cross 1996 Issue (MBIA) ............................... 5.50 03/01/16 515,370
300 Mount Holyoke College Refg Ser 1992 A (MBIA) .......................... 6.30 07/01/13 319,380
500 Tufts University Ser H (MBIA) ......................................... 4.75 02/15/28 456,885
-------- -----------
3,900 3,911,118
-------- -----------
Electric Revenue (7.2%)
500 Massachusetts Municipal Wholesale Electric Company, Power Supply
1992 Ser C ............................................................ 6.625 07/01/18 535,880
500 Puerto Rico Electric Power Authority, Power Ser X ...................... 6.00 07/01/15 534,630
-------- -----------
1,000 1,070,510
-------- -----------
Hospital Revenue (14.2%)
500 Boston, Boston City Hospital -- FHA Insured Mtge Refg Ser B ............ 5.75 02/15/13 517,340
Massachusetts Health & Educational Facilities Authority,
500 Lahey Clinic Medical Center Ser B (MBIA) .............................. 5.625 07/01/15 512,780
1,000 Massachusetts General Hospital Ser F (AMBAC) .......................... 6.00 07/01/15 1,091,760
-------- -----------
2,000 2,121,880
-------- -----------
Industrial Development/Pollution Control Revenue (6.9%)
1,000 Massachusetts Industrial Finance Agency, Eastern Edison Co Refg Ser 1993 5.875 08/01/08 1,023,260
-------- -----------
Mortgage Revenue -- Multi-Family (3.4%)
470 Massachusetts Housing Finance Agency, Rental 1994 Ser A (AMT) (AMBAC) 6.60 07/01/14 504,348
-------- -----------
Mortgage Revenue -- Single Family (4.5%)
Massachusetts Housing Finance Agency,
425 Ser 21 (AMT) .......................................................... 6.30 06/01/25 439,705
220 Ser 21 (AMT) .......................................................... 7.125 06/01/25 233,273
-------- -----------
645 672,978
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MASSACHUSETTS SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) 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 $ 132,262
400 New England Education Loan Marketing Corporation, 1992 Sub Issue H
------- (AMT) .................................................................... 6.90 11/01/09 447,672
-----------
525 579,934
------- -----------
Transportation Facilities Revenue (13.9%)
500 Massachusetts Bay Transportation Authority, 1998 Ser A (MBIA) ............. 5.50 03/01/15 530,370
500 Massachusetts, Federal Highway Grant Anticipation Notes 1998 Ser A ........ 5.50 06/15/14 521,715
500 Massachusetts Port Authority, Refg Ser 1998 A ............................. 5.75 07/01/12 544,735
500 Massachusetts Turnpike Authority, Highway 1997 Ser A (MBIA) ............... 5.00 01/01/37 468,695
------- -----------
2,000 2,065,515
------- -----------
Water & Sewer Revenue (10.2%)
500 Boston Water & Sewer Commission, 1992 Ser A ............................... 5.75 11/01/13 540,295
500 Massachusetts Water Pollution Abatement Trust, Pool Ser 2 ................. 5.70 02/01/12 528,700
500 Massachusetts Water Resources Authority, 1998 Ser A (FSA) ................. 4.75 08/01/27 457,235
------- -----------
1,500 1,526,230
------- -----------
13,540 TOTAL MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $13,325,097).................................................................... 14,047,628
-----------
SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATION (3.4%)
500 Massachusetts Health & Educational Facilities Authority, Capital Assets
------- Ser D (MBIA) (Demand 06/01/99) (Identified Cost $500,000)................. 3.30* 01/01/35 500,000
-----------
$14,040 TOTAL INVESTMENTS (Identified Cost $13,825,097) (a)................................. 97.6% 14,547,628
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 2.4 359,840
-------- -----------
NET ASSETS ......................................................................... 100.0% $14,907,468
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$780,523 and the aggregate gross unrealized depreciation is
$57,992, resulting in net unrealized appreciation of $722,531.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
Connie Lee Connie Lee Insurance Company -- A wholly owned subsidiary of AMBAC
Assurance Corporation.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
MICHIGAN TAX-EXEMPT MUNICIPAL BONDS (93.8%)
General Obligation (16.1%)
$ 300 Berkley School District, 1999 Refg (FGIC) ................................. 4.75 % 01/01/19 $ 280,374
500 Chelsea School District, Bldg & Site Refg 1999 (FGIC) ..................... 5.00 05/01/25 478,970
500 Detroit, Ser 1997-A (MBIA) ................................................ 5.00 04/01/18 485,705
500 Michigan Municipal Bond Authority, School Loan Ser 1998 ................... 5.25 12/01/13 511,715
500 Southgate Community School District, Refg Ser 1999 (FGIC) (WI) ............ 5.75 05/01/15 528,905
500 Puerto Rico, Pub Impr Ser 1998 (MBIA) ..................................... 4.875 07/01/23 479,125
-------- -----------
2,800 2,764,794
-------- -----------
Educational Facilities Revenue (9.6%)
800 Central Michigan University, Refg Ser 1993 (AMBAC)** ...................... 5.50 10/01/10 827,200
800 Oakland University, Board of Trustees, Ser 1995 (MBIA) .................... 5.75 05/15/26 836,440
-------- -----------
1,600 1,663,640
-------- -----------
Electric Revenue (8.7%)
500 Michigan Public Power Agency, Belle River 1993 A .......................... 5.25 01/01/18 497,625
500 Wyandotte, Electric Refg 1992 (MBIA) ...................................... 6.25 10/01/17 541,295
500 Puerto Rico Electric Power Authority, Power Ser DD (FSA) .................. 4.50 07/01/19 461,360
-------- -----------
1,500 1,500,280
-------- -----------
Hospital Revenue (5.6%)
500 Grand Traverse County Hospital, Munson Healthcare Ser 1998 A (AMBAC)....... 4.75 07/01/22 457,990
500 Michigan Hospital Finance Authority, Mercy Health Services 1996 Ser R
-------- (AMBAC) .................................................................. 5.375 08/15/16 501,940
-----------
1,000 959,930
-------- -----------
Industrial Development/Pollution Control Revenue (3.2%)
500 Monroe County, Detroit Edison Co Collateralized Ser 1-1992 (AMT) (MBIA) ... 6.875 09/01/22 546,775
-------- -----------
Mortgage Revenue -- Multi-Family (10.3%)
Michigan Housing Development Authority,
465 Rental Ser 1992 A ........................................................ 6.60 04/01/12 497,564
795 1992 Ser A (FSA) ......................................................... 6.50 04/01/23 843,177
400 Ser 1990 A (AMT) ......................................................... 7.70 04/01/23 424,440
-------- -----------
1,660 1,765,181
-------- -----------
Mortgage Revenue -- Single Family (2.9%)
500 Puerto Rico Housing Finance Corporation, Home Ownership GNMA -- Gtd
-------- 1998 Ser A (AMT) ......................................................... 5.10 12/01/31 494,595
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ --------------- --------------
<S> <C> <C> <C> <C>
Public Facilities (5.9%)
$ 500 Michigan Building Authority, Refg Ser I ................................. 6.25 % 10/01/20 $ 529,825
500 Michigan House of Representatives, Capital Outlook LLC COPs (AMBAC) ..... 5.00 08/15/20 483,460
-------- -----------
1,000 1,013,285
-------- -----------
Transportation Facilities Revenue (7.0%)
Wayne County, Detroit Metropolitan Wayne County Airport Sub Lien,
250 Ser 1991 B (AMT) (MBIA) ................................................ 6.75 12/01/21 269,265
500 Ser 1998 B (MBIA) ...................................................... 4.875 12/01/23 471,030
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A .............. 4.75 07/01/38 457,865
-------- -----------
1,250 1,198,160
-------- -----------
Water & Sewer Revenue (5.2%)
400 Detroit, Water Supply Refg Ser 1992 (FGIC) .............................. 6.375 07/01/22 432,280
500 Grand Rapids, Water Ser 1998 A (FGIC) ................................... 4.75 01/01/28 459,720
-------- -----------
900 892,000
-------- -----------
Refunded (19.3%)
Detroit,
1,000 Sewer Refg Ser 1993 A (FGIC) ........................................... 5.70 07/01/03+ 1,073,340
1,000 Water Supply Refg Ser 1992 (FGIC) ...................................... 6.375 07/01/02+ 1,084,030
655 Holly Area School District, 1995 Bldg & Site (FGIC) ..................... 5.375 05/01/05+ 699,743
445 Mona Shores Public Schools, 1995 Bldg & Site (FGIC) ..................... 5.80 05/01/05+ 470,200
-------- -----------
3,100 3,327,313
-------- -----------
15,810 TOTAL MICHIGAN TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $15,520,477) ...................................................................... 16,125,953
-----------
SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.5%)
500 Delta County Economic Development Corporation, Mead-Escanaba
Paper Co Ser 1985 D (Demand 06/01/99) .................................. 3.35* 12/01/23 500,000
400 Michigan Strategic Fund, Consumers Power Co Ser 1993A
(Demand 06/01/99) ...................................................... 3.35* 05/15/10 400,000
400 Royal Oak Hospital Finance Authority, William Beaumont Hospital
-------- Ser 1996 J (Demand 06/01/99) ........................................... 3.35* 01/01/03 400,000
-----------
1,300 TOTAL SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $1,300,000)........................................................................ 1,300,000
-----------
$ 17,110 TOTAL INVESTMENTS (Identified Cost $16,820,477) (a) ................................ 101.3% 17,425,953
========
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS ..................................... (1.3) (224,274)
-------- -----------
NET ASSETS ......................................................................... 100.0% $17,201,679
======== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
- ---------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
WI Security purchased on a "when-issued" basis.
+ Prerefunded to call date shown.
* 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
$671,763 and the aggregate gross unrealized depreciation is
$66,287, resulting in net unrealized appreciation of $605,476.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
MINNESOTA TAX-EXEMPT MUNICIPAL BONDS (94.3%)
General Obligation (14.4%)
$ 300 Minneapolis, Various Purpose Refg Ser 1998 D .............................. 5.00 % 12/01/17 $ 297,852
300 Minnesota, Various Purpose Refg Ser 1998 .................................. 5.00 06/01/16 299,319
300 Park Rapids Independent School District #309, School Building Ser 1999
(MBIA) ................................................................... 4.75 02/01/21 283,632
300 Waconia Independent District #110, Ser 1999 A ............................. 4.875 02/01/22 286,659
------ ----------
1,200 1,167,462
------ ----------
Educational Facilities Revenue (15.4%)
Minnesota Higher Education Facilities Authority,
200 Northfield St Olaf College 1992 .......................................... 6.40 10/01/21 214,004
1,000 University of Minnesota Ser 1993 A ........................................ 4.80 08/15/03 1,032,170
------ ----------
1,200 1,246,174
------ ----------
Electric Revenue (3.9%)
300 Western Minnesota Municipal Power Agency, Refg 1996 Ser A (AMBAC) ......... 5.50 01/01/12 314,199
------ ----------
Hospital Revenue (9.1%)
300 Robbinsdale, North Memorial Medical Center Ser 1993 A (AMBAC) ............. 5.45 05/15/13 310,554
Rochester,
200 Mayo Foundation/Mayo Medical Center Ser 1992 I ........................... 5.75 11/15/21 206,416
200 Mayo Foundation/Mayo Medical Center Ser 1992 F ........................... 6.25 11/15/21 215,070
------ ----------
700 732,040
------ ----------
Industrial Development/Pollution Control Revenue (10.5%)
200 Anoka County, United Power Assoc NRU-CFC-Gtd Ser 1987 A (AMT) ............. 6.95 12/01/08 210,052
400 Bass Brook, Minnesota Power & Light Co Refg Ser 1992 ...................... 6.00 07/01/22 418,220
Minneapolis Community Development Agency,
100 Ltd Tax Supported Common Bond Fund Ser 1991-3 ............................ 8.25 12/01/11 109,215
100 Ltd Tax Supported Common Bond Fund Ser 1991-1 (AMT) ...................... 8.00 12/01/16 108,633
------ ----------
800 846,120
------ ----------
Mortgage Revenue -- Multi-Family (6.5%)
300 Burnsville, Summit Park Apts -- FHA Insured Refg Ser 1993 ................. 6.00 07/01/33 310,164
200 Minnesota Housing Finance Agency, Ser 1992 A .............................. 6.95 08/01/17 212,154
------ ----------
500 522,318
------ ----------
Mortgage Revenue -- Single Family (9.7%)
130 Minneapolis-Saint Paul Housing Finance Board, GNMA-Backed Phase IX
Ser 1991 (AMT) ........................................................... 7.25 08/01/21 135,972
Minnesota Housing Finance Agency,
415 Ser 1992 C-1 (AMT) ....................................................... 6.75 07/01/23 436,697
200 Ser 1992 H (AMT) ......................................................... 6.50 01/01/26 209,698
------ ----------
745 782,367
------ ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MINNESOTA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Nursing & Health Related Facilities Revenue (6.6%)
$ 500 Minneapolis & Saint Paul Housing & Redevelopment Authority, Group
------ Health Plan Inc Ser 1992 ................................................ 6.75% 12/01/13 $ 532,910
----------
Transportation Facilities Revenue (8.3%)
300 Minneapolis -- Saint Paul Metropolitan Airports Commission, Ser 1998 A
(AMBAC) ................................................................. 5.00 01/01/30 289,512
400 Minnesota Public Facilities Authority, Metropolitan Council Ser 1999 A ... 4.75 03/01/20 381,184
------ ----------
700 670,696
------ ----------
Water & Sewer Revenue (4.7%)
400 Minnesota Public Facilities Authority, Water Pollution Control 1998 Ser A 4.75 03/01/19 380,756
------ ----------
Refunded (5.2%)
400 Saint Paul Housing & Redevelopment Authority, Civic Center Ser 1993
------ (ETM) ................................................................... 5.45 11/01/13 421,440
----------
7,445 TOTAL MINNESOTA TAX-EXEMPT MUNICIPAL BONDS
------ (Identified Cost $7,357,880).................................................................... 7,616,482
----------
SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATION (3.7%)
300 Beltrami County, Northwood Panelboard Co Ser 1991 (Demand 06/01/99)
------ (Identified Cost $300,000) ............................................... 3.30* 12/01/21 300,000
----------
$7,745 TOTAL INVESTMENTS (Identified Cost $7,657,880) (a)................................. 98.0% 7,916,482
======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 2.0 158,169
-------- ----------
NET ASSETS ........................................................................ 100.0% $8,074,651
======== ==========
</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
$298,904 and the aggregate gross depreciation is $40,302,
resulting in net unrealized appreciation of $258,602.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
NEW JERSEY SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS (94.5%)
General Obligation (2.3%)
$ 1,000 New Jersey, Ser 1998 ...................................................... 4.50 % 03/01/18 $ 931,460
-------- -----------
Educational Facilities Revenue (16.9%)
New Jersey Economic Development Authority,
1,000 Educational Testing Service Ser 1998 A (MBIA) ............................ 4.75 05/15/25 940,330
1,000 The Lawrenceville School Ser A 1996 ...................................... 5.75 07/01/16 1,063,670
500 The Seeing Eye Inc 1991 .................................................. 7.30 04/01/11 523,265
New Jersey Educational Facilities Authority,
1,000 Drew University 1998 Ser C (MBIA) ........................................ 5.00 07/01/17 994,070
1,000 Princeton University Ser 1999 A .......................................... 4.75 07/01/25 940,160
500 Rutgers, The State University Refg Ser R .................................. 6.50 05/01/13 541,045
2,000 University of Medicine & Dentistry, 1997 Ser A (MBIA) ..................... 5.00 09/01/17 1,980,960
-------- -----------
7,000 6,983,500
-------- -----------
Electric Revenue (4.8%)
2,000 Puerto Rico Electric Power Authority, Power Ser O ......................... 5.00 07/01/12 1,999,840
-------- -----------
Hospital Revenue (8.7%)
New Jersey Health Care Facilities Financing Authority,
1,000 AHS Hospital Corp Ser 1997 A (AMBAC) ..................................... 6.00 07/01/13 1,110,950
1,000 Atlantic City Medical Center Ser C ....................................... 6.80 07/01/11 1,078,850
465 Robert Wood Johnson University Hospital Ser B (MBIA) ..................... 6.625 07/01/16 497,169
1,000 Saint Barnabas Medical Center/West Hudson Hospital Obligated
Group Refg Ser 1998 A (MBIA) ............................................ 4.75 07/01/28 927,210
-------- -----------
3,465 3,614,179
-------- -----------
Industrial Development/Pollution Control Revenue (6.4%)
500 Middlesex County Pollution Control Financing Authority, Amerada
Hess Corp Refg Ser 1992 .................................................. 6.875 12/01/22 538,600
1,000 New Jersey Economic Development Authority, Elizabethtown Water Co
1995 Ser (AMT) (MBIA) .................................................... 5.60 12/01/25 1,029,990
1,000 Salem County Pollution Control Financing Authority, E I du Pont de
-------- Nemours & Co 1992 Ser A (AMT) ............................................ 6.125 07/15/22 1,062,480
-----------
2,500 2,631,070
-------- -----------
Mortgage Revenue -- Multi-Family (9.0%)
New Jersey Housing & Mortgage Finance Agency,
2,000 1995 Ser A (AMBAC) ....................................................... 6.00 11/01/14 2,120,060
1,000 Presidential Plaza at Newport -- FHA Insured Mtges Refg 1991 Ser 1 ....... 7.00 05/01/30 1,080,510
500 Rental 1991 Ser A (AMT) .................................................. 7.25 11/01/22 524,755
-------- -----------
3,500 3,725,325
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
NEW JERSEY SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
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 $ 970,633
-----------
Public Facilities Revenue (8.3%)
New Jersey Sports & Exposition Authority,
1,500 State Contract 1993 Ser A ................................................... 5.50 09/01/23 1,532,475
1,000 State Contract 1998 Ser A (MBIA) ............................................ 4.50 03/01/24 906,960
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------- (AMBAC) ..................................................................... 5.00 07/01/28 971,590
-----------
3,500 3,411,025
-------- -----------
Resource Recovery Revenue (2.2%)
900 Warren County Pollution Control Financing Authority, Warren Energy
-------- Resource Co Ltd Partnership Ser 1984 (MBIA) ................................. 6.60 12/01/07 915,651
-----------
Transportation Facilities Revenue (16.1%)
1,500 Delaware River Port Authority, Ser 1995 (FGIC) ............................... 5.50 01/01/26 1,551,795
1,500 New Jersey Highway Authority, Sr Parkway Refg 1992 Ser ....................... 6.25 01/01/14 1,602,015
1,000 New Jersey Transportation Trust Authority, 1998 Ser A (FSA) .................. 4.50 06/15/19 924,010
1,000 New Jersey Turnpike Authority, Ser 1991 C .................................... 5.75 01/01/11 1,011,900
1,500 Port Authority of New York & New Jersey, Cons 99th Ser (AMT) (FGIC) .......... 5.75 05/01/15 1,566,645
-------- -----------
6,500 6,656,365
-------- -----------
Water & Sewer Revenue (17.5%)
1,000 Atlantic City Municipal Utilities Authority, Refg Ser 1993 ................... 5.75 05/01/17 1,034,540
1,000 Bayonne Municipal Utilities Authority, Water Ser 1997 (MBIA) ................. 5.00 01/01/28 976,170
1,000 Bergen County Utilities Authority, Water 1998 Ser A (FGIC) ................... 4.75 12/15/15 970,960
1,000 Camden County Municipal Utilities Authority, Sewer Refg Ser 1997 (FGIC) ...... 5.25 07/15/17 1,012,480
1,000 Northwest Bergen County Utilities Authority, Refg 1992 Ser (MBIA) ............ 6.00 07/15/13 1,081,220
2,000 Passaic Valley Sewerage Commissioners, Ser 1992 D (AMBAC) .................... 5.75 12/01/13 2,129,980
-------- -----------
7,000 7,205,350
-------- -----------
38,275 TOTAL NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $37,173,602)....................................................................... 39,044,398
-----------
SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS (3.6%)
1,000 New Jersey Economic Development Authority, Foreign Trade Zone Ser 1998
(Demand 06/01/99) ........................................................... 3.30* 12/01/07 1,000,000
500 Union County Industrial Pollution Control Financing Authority, Exxon Corp
-------- Ser 1994 (Demand 06/01/99) .................................................. 3.25* 07/01/33 500,000
-----------
1,500 TOTAL SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $1,500,000)........................................................................ 1,500,000
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
NEW JERSEY SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------- --------------
<S> <C> <C> <C>
$ 39,775 TOTAL INVESTMENTS (Identified Cost $38,673,602) (a) 98.1% $40,544,398
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .. 1.9 792,928
----- -----------
NET ASSETS ...................................... 100.0% $41,337,326
===== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$1,998,815 and the aggregate gross unrealized depreciation is
$128,019, resulting in net unrealized appreciation of
$1,870,796.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
NEW YORK SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- ---------------
<S> <C> <C> <C> <C>
NEW YORK TAX-EXEMPT MUNICIPAL BONDS (92.5%)
General Obligation (12.0%)
$ 500 New York City, 1995 Ser D (MBIA) .................................... 6.20 % 02/01/07 $ 553,995
500 New York State, Refg Ser 1995 B ..................................... 5.70 08/15/13 527,230
300 Puerto Rico, Public Improvement Refg Ser 1992 A ..................... 6.00 07/01/14 317,922
-------- ------------
1,300 1,399,147
-------- ------------
Educational Facilities Revenue (19.8%)
500 Hempstead Industrial Development Agency, Hofstra University Ser 1996
(MBIA) ............................................................. 5.80 07/01/15 534,865
New York State Dormitory Authority,
300 Cooper Union Ser 1996 (AMBAC) ...................................... 5.375 07/01/16 304,836
400 Manhattan College Ser 1992 (AGRC) .................................. 6.50 07/01/19 431,128
500 State University Ser 1993 A ........................................ 5.25 05/15/15 510,310
500 University of Rochester Ser 1993 A ................................. 5.625 07/01/12 522,075
-------- ------------
2,200 2,303,214
-------- ------------
Electric Revenue (6.2%)
300 Long Island Power Authority, Electric Ser 1998 A (FSA) .............. 5.125 12/01/22 293,778
400 Puerto Rico Electric Power Authority, Power Ser X ................... 6.00 07/01/15 427,704
-------- ------------
700 721,482
-------- ------------
Industrial Development/Pollution Control Revenue (14.4%)
500 New York City Industrial Development Agency, Japan Airlines Co 1991
(AMT) (FSA) ........................................................ 6.00 11/01/15 532,605
1,000 New York State Energy Research & Development Authority, Brooklyn
-------- Union Gas Co 1991 Ser A & B (AMT) .................................. 6.952 07/01/26 1,145,330
------------
1,500 1,677,935
-------- ------------
Mortgage Revenue -- Single Family (8.1%)
500 New York State Mortgage Agency, Homeowner Ser 27 .................... 6.90 04/01/15 542,405
400 Puerto Rico Housing Finance Corporation, Homeownership GNMA -- Gtd
-------- 1998 Ser A (AMT) ................................................... 5.10 12/01/31 395,676
------------
900 938,081
-------- ------------
Nursing & Health Related Facilities Revenue (3.8%)
500 New York City Industrial Development Agency, Lighthouse International
-------- Ser 1998 (MBIA) .................................................... 4.50 07/01/23 444,665
------------
Public Facilities Revenue (8.9%)
500 New York City Cultural Resources Trust, The New York Botanical Garden
Ser 1996 (MBIA) .................................................... 5.75 07/01/16 527,745
500 New York State Urban Development Corporation, Correctional
-------- 1998 Ser B (AMBAC) ................................................. 5.25 01/01/16 504,300
------------
1,000 1,032,045
-------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
NEW YORK SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Resource Recovery Revenue (4.6%)
$ 500 Oneida-Herkimer Solid Waste Management Authority, Ser 1992 ................... 6.65% 04/01/05 $ 532,940
------- -----------
Transportation Facilities Revenue (8.9%)
550 Buffalo & Fort Erie Public Bridge Authority, Toll Bridge Ser 1995 (MBIA) ..... 5.75 01/01/25 580,157
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................... 4.75 07/01/38 457,865
------- -----------
1,050 1,038,022
------- -----------
Water & Sewer Revenue (3.9%)
500 New York City Municipal Water Finance Authority, 1999 Ser A (FGIC) ........... 4.75 06/15/31 455,660
------- -----------
Refunded (1.9%)
200 New York State Medical Care Facilities Finance Agency, Insured Hospital &
------- Nursing Home -- FHA Insured Mtge 1992 Ser A ................................. 6.70 08/15/02+ 218,876
-----------
10,350 TOTAL NEW YORK TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $10,139,209)........................................................................ 10,762,067
-----------
SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.2%)
300 New York State Energy Research & Development Authority, New York
State Electric & Gas Corp Ser 1994 C (Demand 06/01/99) ...................... 3.15* 06/01/29 300,000
300 Port Authority of New York & New Jersey, Special Obligation Ser 2
------- (Demand 06/01/99) ........................................................... 3.25* 05/01/19 300,000
-----------
600 TOTAL SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $600,000)........................................................................... 600,000
-----------
$10,950 TOTAL INVESTMENTS (Identified Cost $10,739,209) (a).................................... 97.7% 11,362,067
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........................................ 2.3 271,092
-------- -----------
NET ASSETS ............................................................................ 100.0% $11,633,159
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
+ Prerefunded to call date shown.
* Current coupon of variable rate security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$683,228 and the aggregate gross unrealized depreciation is
$60,370, resulting in net unrealized appreciation of $622,858.
Bond Insurance:
- ---------------
AGRC Asset Guaranty Reinsurance Company.
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
OHIO TAX-EXEMPT MUNICIPAL BONDS (93.9%)
General Obligation (23.4%)
$ 300 Bedford School District, Ser 1993 ..................................... 6.25 % 12/01/13 $ 325,065
500 Dayton, Ltd Tax Ser 1998 (FGIC) ....................................... 4.70 12/01/20 467,490
800 Delaware City School District, Constr & Impr (FGIC) ................... 5.75 12/01/20 840,336
500 North Olmsted, Various Purpose Impr Ltd Tax Ser 1996 (AMBAC) .......... 6.20 12/01/11 561,320
500 Ohio Infrastructure Improvement Ser 1998 B ............................ 4.75 02/01/18 476,735
500 Ottawa County, Various Purpose Dtd 07/01/98 (MBIA) .................... 5.00 09/01/31 479,875
500 Rocky River City School District, Impr Ser 1998 ....................... 5.375 12/01/17 515,130
500 Puerto Rico, Public Impr Ser 1998 (MBIA) .............................. 4.875 07/01/23 479,125
------- -----------
4,100 4,145,076
------- -----------
Educational Facilities Revenue (9.0%)
500 Ohio Higher Educational Facility Commission, Case Western Reserve
University Ser 1992 .................................................. 6.00 10/01/22 529,050
500 University of Cincinnati, General Receipts Ser G ...................... 7.00 06/01/11 538,035
500 University of Toledo, Ser 1992 A (FGIC) ............................... 5.90 06/01/20 534,745
------- -----------
1,500 1,601,830
------- -----------
Electric Revenue (7.5%)
500 Cleveland Public Power System, Ser 1998 (MBIA) ........................ 5.25 11/15/15 506,005
500 Hamilton!, Refg 1992 Ser A (FGIC) ..................................... 6.00 10/15/12 537,245
300 Puerto Rico Electric Power Authority, Ser DD (FSA) .................... 4.50 07/01/19 276,816
------- -----------
1,300 1,320,066
------- -----------
Hospital Revenue (6.9%)
700 Akron Bath & Copley Joint Township Hospital District, Summa Health
Ser 1992 A ........................................................... 6.25 11/15/07 739,018
475 Hamilton County, Bethesda Hospital Inc Ser 1986 A ..................... 7.00 01/01/09 476,378
------- -----------
1,175 1,215,396
------- -----------
Industrial Development/Pollution Control Revenue (5.5%)
400 Ashtabula County, Ashland Oil Inc Refg 1992 Ser A ..................... 6.90 05/01/10 428,876
500 Ohio Water Development Authority, Dayton Power & Light Co
------- Collateralized Refg 1992 Ser A ....................................... 6.40 08/15/27 539,260
-----------
900 968,136
------- -----------
Mortgage Revenue -- Single Family (9.5%)
Ohio Housing Finance Agency,
600 GNMA-Backed 1991 Ser A-1 & 2 (AMT) ................................... 6.903 03/24/31 631,122
990 Residential 1996 Ser B-2 (AMT) ....................................... 6.10 09/01/28 1,044,242
------- -----------
1,590 1,675,364
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (4.1%)
$ 500 Ohio Turnpike Commission, Ser 1998 B (FGIC) ............................... 4.50 % 02/15/24 $ 444,580
300 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 274,719
------- -----------
800 719,299
------- -----------
Water & Sewer Revenue (17.2%)
500 Mahoning Valley Sanitary District, Refg Ser 1998 (FSA) .................... 5.125 12/15/16 500,635
800 Montgomery County, Water Ser 1992 (FGIC) .................................. 6.25 11/15/17 869,176
800 Northeast Ohio Regional Sewer District, Wastewater Impr Refg
Ser 1995 (AMBAC) ......................................................... 5.60 11/15/13 840,080
800 Ohio Water Development Authority, Water Pollution Ser 1995 (MBIA) ......... 5.60 06/01/10 843,360
------- -----------
2,900 3,053,251
------- -----------
Other Revenue (1.6%)
300 Cuyahoga County, The Medical Center Company Ser 1998 (AMBAC) .............. 5.125 02/15/28 290,556
------- -----------
Refunded (9.2%)
1,000 Clermont County, Mercy Health Ser 1991 (AMBAC) ............................ 6.733 09/01/01+ 1,080,250
500 Hamilton County, Franciscan Sisters of the Poor/Providence Hospital
------- Ser 1992 ................................................................. 6.875 07/01/02+ 548,700
-----------
1,500 1,628,950
------- -----------
16,065 TOTAL OHIO TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $15,897,407)..................................................................... 16,617,924
-----------
SHORT-TERM OHIO TAX-EXEMPT MUNICIPAL OBLIGATION (4.0%)
700 Ohio Air Quality Development Authority, Mead Corp 1986 Ser A
------- (Demand 06/01/99) (Identified Cost $700,000).............................. 3.20* 10/01/01 700,000
-----------
$16,765 TOTAL INVESTMENTS (Identified Cost $16,597,407) (a)................................. 97.9% 17,317,924
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 2.1 380,256
-------- -----------
NET ASSETS ......................................................................... 100.0% $17,698,180
======== ===========
</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
$803,769 and the aggregate gross unrealized depreciation is
$83,252, resulting in net unrealized appreciation of $720,517.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance 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 --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS (93.2%)
General Obligation (7.9%)
$ 2,000 Berks County, Second Ser 1992 (FGIC) ...................................... 5.75 % 11/15/12 $ 2,100,240
500 Cambria County, Ser 1998 (FGIC) ........................................... 5.50 08/15/16 515,325
1,000 Delaware County, Ser 1999 ................................................. 5.125 10/01/19 988,110
600 Puerto Rico, Public Improvement Refg Ser 1992 A ........................... 6.00 07/01/14 635,844
------- -----------
4,100 4,239,519
------- -----------
Educational Facilities Revenue (12.1%)
2,000 Delaware County Authority, Villanova University Ser 1995 (AMBAC) .......... 5.80 08/01/25 2,102,021
Pennsylvania Higher Educational Facilities Authority,
1,000 Allegheny College Refg Ser 1998 A (MBIA) ................................. 5.00 11/01/22 963,870
1,000 University of Pennsylvania Ser 1998 ...................................... 4.625 07/15/30 887,860
1,000 Pennsylvania State University, Second Refg Ser 1992 ....................... 5.50 08/15/16 1,027,700
790 Swathmore Borough Authority, Swarthmore College Ser 1992 .................. 6.00 09/15/20 848,602
655 University Pittsburgh, Cap 1992 Ser A (MBIA) .............................. 6.125 06/01/21 702,998
------- -----------
6,445 6,533,051
------- -----------
Electric Revenue (3.5%)
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ....................................................... 4.50 07/01/19 922,720
1,000 Ser GG (FSA) ............................................................. 4.75 07/01/21 943,760
------- -----------
2,000 1,866,480
------- -----------
Hospital Revenue (14.9%)
Allegheny County Hospital Development Authority,
1,000 Catholic Health East Health Ser 1998 A (AMBAC) ........................... 4.875 11/15/26 917,900
1,000 Presbyterian University Health Inc Ser 1992 B (MBIA) ..................... 6.00 11/01/12 1,075,170
2,000 Delaware County Authority, Catholic Health East Health Ser 1998 A
(AMBAC) ................................................................... 4.875 11/15/26 1,835,800
Philadelphia Hospitals & Higher Education Facilities Authority,
1,750 Chestnut Hill Hospital Ser of 1992 ....................................... 6.375 11/15/11 1,832,285
1,000 Children's Hospital of Philadelphia Ser A of 1993 ........................ 5.375 02/15/14 1,000,640
1,250 Sayre Health Care Facilities Authority, Ser 1985 (AMBAC) .................. 7.15 12/01/10 1,355,900
------- -----------
8,000 8,017,695
------- -----------
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 1,075,880
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Multi-Family (2.0%)
Pennsylvania Housing Finance Agency,
$ 50 Moderate Rehab Sec 8 Assisted Issue B .................................. 9.00 % 08/01/01 $ 50,329
1,000 Ser 1992-35 D (AMT) .................................................... 6.20 04/01/25 1,046,140
------- -----------
1,050 1,096,469
------- -----------
Mortgage Revenue -- Single Family (5.2%)
2,000 Pennsylvania Housing Finance Agency, Ser 1991-31 C (AMT) ................ 7.00 10/01/23 2,116,080
635 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
Ser C .................................................................. 6.85 10/15/23 671,316
-----------
2,635 2,787,396
------- -----------
Public Facilities Revenue (3.5%)
2,000 Philadelphia Authority For Industrial Development, The Franklin Institute
------- Ser 1998 ............................................................... 5.20 06/15/26 1,890,480
-----------
Resource Recovery Revenue (3.8%)
1,000 Lancaster County Solid Waste Management Authority, 1998 Ser B (AMBAC).... 5.375 12/15/15 1,013,290
1,000 Montgomery County Industrial Development Authority, Ser 1989 ............ 7.50 01/01/12 1,050,700
------- -----------
2,000 2,063,990
------- -----------
Student Loan Revenue (4.0%)
Pennsylvania Higher Education Assistance Agency,
1,000 1988 Ser D (AMT) (AMBAC) ............................................... 6.05 01/01/19 1,057,760
1,000 1991 Ser B (AMT) (AMBAC) ............................................... 6.85 09/01/26 1,101,110
------- -----------
2,000 2,158,870
------- -----------
Transportation Facilities Revenue (23.8%)
1,000 Guam, Highway 1992 Ser A (FSA) .......................................... 6.30 05/01/12 1,076,630
Allegheny County, Greater Pittsburgh Int'l Airport
1,000 Ser 1997 B (MBIA) ...................................................... 5.00 01/01/19 968,400
500 Ser 1992 (AMT) (FSA) ................................................... 6.625 01/01/22 536,640
2,000 Delaware River Port Authority, Ser 1995 (FGIC) .......................... 5.50 01/01/26 2,069,060
Pennsylvania Turnpike Commission,
2,000 Ser O 1992 (FGIC) ...................................................... 6.00 12/01/12 2,146,119
2,000 Ser A 1998 (AMBAC) ..................................................... 4.75 12/01/27 1,839,160
1,000 Philadelphia Industrial Development Authority, Philadelphia Airport
Ser 1998 A (AMT) (FGIC) ................................................ 5.00 07/01/23 942,540
1,000 Pittsburgh Public Parking Authority, Ser 1992 A (FGIC) .................. 5.875 12/01/12 1,071,400
1,255 Southeastern Pennsylvania Transportation Authority, Ser A 1999 (FGIC) ... 5.25 03/01/18 1,259,267
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A .............. 4.75 07/01/38 915,730
------- -----------
12,755 12,824,946
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS May 31, 1999 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Water & Sewer Revenue (6.8%)
$ 2,000 Philadelphia, Water & Wastewater Ser 1995 (MBIA) .......................... 6.25% 08/01/11 $ 2,260,920
2,000 Pittsburgh, Water & Sewer Authority, 1998 Ser B (FGIC) .................... 0.00 09/01/28 416,280
1,000 West Mifflin Sanitary Sewer Municipal Authority, Ser 1998 (MBIA) .......... 5.00 08/01/23 963,260
------- -----------
5,000 3,640,460
------- -----------
Other Revenue (3.1%)
1,500 Pennsylvania Finance Authority, Cap Impr Refg Ser 1993 .................... 6.60 11/01/09 1,643,340
------- -----------
Refunded (0.6%)
290 Lehigh County Industrial Development Authority, Strawbridge & Clothier
------- Refg Ser of 1991 (ETM) ................................................... 7.20 12/15/01 304,654
-----------
50,775 TOTAL PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $48,445,032) ................................................................... 50,143,230
-----------
SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.2%)
2,400 Lehigh County General Purpose Authority, Lehigh Valley Hospital 1997 A
(AMBAC) (Demand 06/01/99) ................................................ 3.25* 07/01/28 2,400,000
400 Pennsylvania Higher Educational Facilities Authority, Carnegie Mellon
------- University Ser A (Demand 06/01/99) ....................................... 3.35* 11/01/25 400,000
-----------
2,800 TOTAL SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $2,800,000) .................................................................... 2,800,000
-----------
$53,575 TOTAL INVESTMENTS (Identified Cost $51,245,032) (a) ....................... 98.4% 52,943,230
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 1.6 832,796
-------- -----------
NET ASSETS ......................................................................... 100.0% $53,776,026
======== ===========
</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
$2,146,880 and the aggregate gross unrealized depreciation is
$448,682, resulting in net unrealized appreciation of $1,698,198.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
---------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value* ...................... $ 40,632,435 $ 102,950,030 $ 58,388,022 $ 14,547,628
Cash ...................................................... 69,858 99,698 198,082 131,081
Receivable for:
Investments sold ........................................ -- -- -- 5,000
Interest ................................................ 808,253 1,448,263 746,597 266,884
Shares of beneficial interest sold ...................... 7,291 557,245 4,904 --
Prepaid expenses .......................................... 10,341 3,866 7,475 1,662
------------ ------------- ------------ ------------
TOTAL ASSETS ............................................ 41,528,178 105,059,102 59,345,080 14,952,255
------------ ------------- ------------ ------------
LIABILITIES:
Payable for:
Investments purchased ................................... -- -- -- --
Shares of beneficial interest repurchased ............... 142,830 -- -- 23,959
Dividends to shareholders ............................... 10,609 27,161 15,206 3,704
Investment management fee ............................... 12,331 31,148 17,679 4,438
Plan of distribution fee ................................ 5,285 13,349 7,577 1,902
Accrued expenses .......................................... 15,029 25,488 18,341 10,784
------------ ------------- ------------ ------------
TOTAL LIABILITIES ....................................... 186,084 97,146 58,803 44,787
------------ ------------- ------------ ------------
NET ASSETS .............................................. $ 41,342,094 $ 104,961,956 $ 59,286,277 $ 14,907,468
============ ============= ============ ============
COMPOSITION OF NET ASSETS:
Paid-in-capital ........................................... $ 39,710,973 $ 99,901,697 $ 56,309,565 $ 14,158,502
Undistributed net investment income ....................... 15,928 40,753 22,826 5,561
Accumulated undistributed net realized gain ............... 195,694 629,199 578,373 20,874
Net unrealized appreciation ............................... 1,419,499 4,390,307 2,375,513 722,531
------------ ------------- ------------ ------------
NET ASSETS .............................................. $ 41,342,094 $ 104,961,956 $ 59,286,277 $ 14,907,468
============ ============= ============ ============
*IDENTIFIED COST ........................................ $ 39,212,936 $ 98,559,723 $ 56,012,509 $ 13,825,097
============ ============= ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ............... 3,951,345 9,692,023 5,535,213 1,353,294
============ ============= ============ ============
NET ASSET VALUE PER SHARE,
(unlimited authorized shares of $.01 par value)........... $10.46 $10.83 $10.71 $11.02
====== ====== ====== ======
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus 4.17% of net asset value)** ........ $10.90 $11.28 $11.16 $11.48
====== ====== ====== ======
</TABLE>
- ---------------
** On sales of $25,000 or more, the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- ------------------ --------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
$17,425,953 $7,916,482 $40,544,398 $11,362,067 $17,317,924 $52,943,230
108,229 40,642 106,392 106,231 104,424 37,543
-- -- -- -- -- --
204,633 126,215 702,307 193,211 268,628 824,271
10,155 -- 31,556 -- 27,085 45,821
4,639 5,905 4,606 5,492 4,798 4,585
----------- ---------- ----------- ----------- ----------- -----------
17,753,609 8,089,244 41,389,259 11,667,001 17,722,859 53,855,450
----------- ---------- ----------- ----------- ----------- -----------
530,183 -- -- -- -- --
-- -- 8,712 16,209 2,373 24,827
4,147 1,853 10,631 2,842 4,382 14,084
5,134 2,401 12,397 3,494 5,302 16,004
2,200 1,029 5,313 1,498 2,272 6,859
10,266 9,310 14,880 9,799 10,350 17,650
----------- ---------- ----------- ----------- ----------- -----------
551,930 14,593 51,933 33,842 24,679 79,424
----------- ---------- ----------- ----------- ----------- -----------
$17,201,679 $8,074,651 $41,337,326 $11,633,159 $17,698,180 $53,776,026
=========== ========== =========== =========== =========== ===========
$16,473,031 $7,791,561 $39,146,182 $10,983,020 $16,945,407 $51,965,237
6,225 2,812 15,953 4,265 6,701 21,134
116,947 21,676 304,395 23,016 25,555 91,457
605,476 258,602 1,870,796 622,858 720,517 1,698,198
----------- ---------- ----------- ----------- ----------- -----------
$17,201,679 $8,074,651 $41,337,326 $11,633,159 $17,698,180 $53,776,026
=========== ========== =========== =========== =========== ===========
$16,820,477 $7,657,880 $38,673,602 $10,739,209 $16,597,407 $51,245,032
=========== ========== =========== =========== =========== ===========
1,620,312 765,732 3,803,691 1,072,388 1,635,981 4,968,985
=========== ========== =========== =========== =========== ===========
$10.62 $10.55 $10.87 $10.85 $10.82 $10.82
====== ====== ====== ====== ====== ======
$11.06 $10.99 $11.32 $11.30 $11.27 $11.27
====== ====== ====== ====== ====== ======
</TABLE>
33
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENTS OF OPERATIONS
For the six months ended May 31, 1999 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ............................... $1,097,881 $ 2,795,906 $ 1,568,586 $ 402,649
---------- ------------ ------------ ----------
EXPENSES
Investment management fee ..................... 72,558 182,569 105,462 26,331
Plan of distribution fee ...................... 28,553 76,651 42,257 10,576
Transfer agent fees and expenses .............. 6,869 20,837 10,582 3,090
Professional fees ............................. 13,192 15,642 14,413 12,165
Shareholder reports and notices ............... 4,512 9,037 5,807 1,745
Trustees' fees and expenses ................... 991 2,568 1,289 266
Custodian fees ................................ 1,235 2,523 1,811 616
Registration fees ............................. 3,840 1,710 1,145 3,640
Other ......................................... 3,096 4,748 3,863 2,493
---------- ------------ ------------ ----------
TOTAL EXPENSES .............................. 134,846 316,285 186,629 60,922
Less: expense offset .......................... (1,233) (2,518) (1,811) (616)
---------- ------------ ------------ ----------
NET EXPENSES ................................ 133,613 313,767 184,818 60,306
---------- ------------ ------------ ----------
NET INVESTMENT INCOME ....................... 964,268 2,482,139 1,383,768 342,343
---------- ------------ ------------ ----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain ............................. 142,198 629,204 280,983 --
Net change in unrealized appreciation ......... (960,383) (2,539,094) (1,536,686) (284,247)
---------- ------------ ------------ ----------
NET LOSS .................................... (818,185) (1,909,890) (1,255,703) (284,247)
---------- ------------ ------------ ----------
NET INCREASE .................................. $ 146,083 $ 572,249 $ 128,065 $ 58,096
========== ============ ============ ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- ------------- ------------- -------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 460,999 $ 217,022 $1,108,977 $ 317,160 $ 494,461 $ 1,442,598
---------- ---------- ---------- ---------- ---------- ------------
30,643 14,566 72,927 20,788 31,994 94,177
12,602 6,067 29,264 8,746 12,310 39,897
5,120 2,038 10,766 2,611 5,053 8,362
14,016 14,723 12,584 12,719 12,900 11,667
2,510 1,078 6,420 1,512 2,181 5,371
411 128 1,021 282 434 1,208
761 496 1,203 620 806 1,661
1,377 1,482 3,526 3,301 1,279 1,809
2,420 2,164 3,070 2,288 2,493 4,329
---------- ---------- ---------- ---------- ---------- ------------
69,860 42,742 140,781 52,867 69,450 168,481
(761) (496) (1,201) (620) (806) (1,658)
---------- ---------- ---------- ---------- ---------- ------------
69,099 42,246 139,580 52,247 68,644 166,823
---------- ---------- ---------- ---------- ---------- ------------
391,900 174,776 969,397 264,913 425,817 1,275,775
---------- ---------- ---------- ---------- ---------- ------------
77,460 21,677 51,868 9,873 27,187 4,328
(348,269) (164,221) (771,646) (228,525) (369,562) (1,145,312)
---------- ---------- ---------- ---------- ---------- ------------
(270,809) (142,544) (719,778) (218,652) (342,375) (1,140,984)
---------- ---------- ---------- ---------- ---------- ------------
$ 121,091 $ 32,232 $ 249,619 $ 46,261 $ 83,442 $ 134,791
========== ========== ========== ========== ========== ============
</TABLE>
35
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA
----------------------------------- -----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998
--------------- ------------------- ---------------- ------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ............................ $ 964,268 $ 1,958,982 $ 2,482,139 $ 5,098,849
Net realized gain ................................ 142,198 725,798 629,204 2,241,204
Net change in unrealized appreciation ............ (960,383) (57,712) (2,539,094) 248,404
----------- ----------- ------------ ------------
NET INCREASE ................................... 146,083 2,627,068 572,249 7,588,457
----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................ (948,340) (1,970,313) (2,441,386) (5,127,716)
Net realized gain ................................ (555,653) -- (1,789,764) --
----------- ----------- ------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS .............. (1,503,993) (1,970,313) (4,231,150) (5,127,716)
----------- ----------- ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 3,146,832 3,583,708 6,533,630 7,971,183
Reinvestment of dividends and distributions ...... 811,725 956,419 2,220,138 2,300,541
Cost of shares repurchased ....................... (2,913,763) (5,432,230) (5,308,352) (11,766,093)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) ........................ 1,044,794 (892,103) 3,445,416 (1,494,369)
----------- ----------- ------------ ------------
TOTAL INCREASE (DECREASE) ...................... (313,116) (235,348) (213,485) 966,372
NET ASSETS:
Beginning of period .............................. 41,655,210 41,890,558 105,175,441 104,209,069
----------- ----------- ------------ ------------
END OF PERIOD .................................. $41,342,094 $41,655,210 $104,961,956 $105,175,441
=========== =========== ============ ============
UNDISTRIBUTED NET INVESTMENT INCOME .............. $ 15,928 -- $ 40,753 --
=========== =========== ============ ============
SHARES ISSUED AND REPURCHASED:
Sold ............................................. 296,506 333,041 595,159 718,169
Reinvestment of dividends and distributions ...... 76,445 89,180 202,421 207,368
Repurchased ...................................... (273,815) (506,438) (481,595) (1,061,263)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) ........................ 99,136 (84,217) 315,985 (135,726)
=========== =========== ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
<TABLE>
<CAPTION>
FLORIDA MASSACHUSETTS MICHIGAN
- ------------------------------------ ----------------------------------- ----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998
- ---------------- ------------------- --------------- ------------------- --------------- ------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
$ 1,383,768 $ 2,983,488 $ 342,343 $ 670,436 $ 391,900 $ 876,689
280,983 2,077,788 -- 171,067 77,460 708,264
(1,536,686) (437,571) (284,247) 170,653 (348,269) (248,253)
----------- ----------- ----------- ----------- ----------- -----------
128,065 4,623,705 58,096 1,012,156 121,091 1,336,700
----------- ----------- ----------- ----------- ----------- -----------
(1,360,942) (3,001,258) (336,782) (674,613) (385,675) (881,921)
(1,699,634) -- (150,193) (26,809) (654,782) --
----------- ----------- ----------- ----------- ----------- -----------
(3,060,576) (3,001,258) (486,975) (701,422) (1,040,457) (881,921)
----------- ----------- ----------- ----------- ----------- -----------
5,044,598 6,336,196 590,298 2,177,938 969,098 1,976,447
1,367,851 1,065,444 297,845 398,624 709,342 488,182
(5,455,694) (12,850,195) (787,886) (2,212,481) (1,316,605) (4,672,568)
----------- ----------- ----------- ----------- ----------- -----------
956,755 (5,448,555) 100,257 364,081 361,835 (2,207,939)
----------- ----------- ----------- ----------- ----------- -----------
(1,975,756) (3,826,108) (328,622) 674,815 (557,531) (1,753,160)
61,262,033 65,088,141 15,236,090 14,561,275 17,759,210 19,512,370
----------- ----------- ----------- ----------- ----------- -----------
$59,286,277 $61,262,033 $14,907,468 $15,236,090 $17,201,679 $17,759,210
=========== =========== =========== =========== =========== ===========
$ 22,826 -- $ 5,561 -- $ 6,225 --
=========== =========== =========== =========== =========== ===========
462,050 569,452 52,888 193,348 88,728 178,504
125,651 95,684 26,680 35,479 66,053 44,120
(499,530) (1,152,957) (70,472) (196,446) (121,683) (419,448)
----------- ----------- ----------- ----------- ----------- -----------
88,171 (487,821) 9,096 32,381 33,098 (196,824)
=========== =========== =========== =========== =========== ===========
</TABLE>
37
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS, continued
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY
---------------------------------- ----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998
-------------- ------------------- --------------- ------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ............................ $ 174,776 $ 385,482 $ 969,397 $ 1,969,062
Net realized gain ................................ 21,677 152,552 51,868 614,679
Net change in unrealized appreciation ............ (164,221) (55,068) (771,646) 394,703
---------- ------------ ------------ ------------
NET INCREASE ................................... 32,232 482,966 249,619 2,978,444
---------- ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................ (171,964) (388,129) (953,444) (1,980,284)
Net realized gain ................................ (71,136) -- (356,974) --
---------- ------------ ------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS .............. (243,100) (388,129) (1,310,418) (1,980,284)
---------- ------------ ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 622,078 450,188 2,115,209 4,281,513
Reinvestment of dividends and distributions ...... 39,070 205,051 785,206 1,110,422
Cost of shares repurchased ....................... (792,297) (1,075,759) (2,305,302) (6,107,000)
---------- ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (131,149) (420,520) 595,113 (715,065)
---------- ------------ ------------ ------------
TOTAL INCREASE (DECREASE) ...................... (342,017) (325,683) (465,686) 283,095
NET ASSETS:
Beginning of period .............................. 8,416,668 8,742,351 41,803,012 41,519,917
---------- ------------ ------------ ------------
END OF PERIOD .................................. $8,074,651 $ 8,416,668 $ 41,337,326 $ 41,803,012
========== ============ ============ ============
UNDISTRIBUTED NET INVESTMENT INCOME .............. $ 2,812 -- $ 15,953 --
========== ============ ============ ============
SHARES ISSUED AND REPURCHASED:
Sold ............................................. 50,305 41,683 192,119 387,819
Reinvestment of dividends and distributions ...... 11,581 19,052 71,403 100,683
Repurchased ...................................... (74,190) (99,811) (209,985) (554,108)
---------- ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (12,304) (39,076) 53,537 (65,606)
========== ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
<TABLE>
<CAPTION>
NEW YORK OHIO PENNSYLVANIA
- ----------------------------------- ----------------------------------- ----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998 MAY 31, 1999 NOVEMBER 30, 1998
- --------------- ------------------- --------------- ------------------- --------------- ------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
$ 264,913 $ 566,953 $ 425,817 $ 863,067 $ 1,275,775 $ 2,506,283
9,873 408,044 27,187 388,407 4,328 578,722
(228,525) (77,877) (369,562) (29,432) (1,145,312) 203,628
----------- ------------ ------------ ------------ ------------ ------------
46,261 897,120 83,442 1,222,042 134,791 3,288,633
----------- ------------ ------------ ------------ ------------ ------------
(260,648) (570,172) (419,116) (870,982) (1,254,642) (2,518,046)
(381,599) -- (219,843) -- (491,592) (8,207)
----------- ------------ ------------ ------------ ------------ ------------
(642,247) (570,172) (638,959) (870,982) (1,746,234) (2,526,253)
----------- ------------ ------------ ------------ ------------ ------------
479,985 656,120 1,127,227 2,170,150 3,189,280 12,831,070
405,238 301,450 396,431 479,951 1,179,251 1,539,410
(669,406) (1,857,636) (1,850,267) (2,897,075) (2,789,309) (5,380,740)
----------- ------------ ------------ ------------ ------------ ------------
215,817 (900,066) (326,609) (246,974) 1,579,222 8,989,740
----------- ------------ ------------ ------------ ------------ ------------
(380,169) (573,118) (882,126) 104,086 (32,221) 9,752,120
12,013,328 12,586,446 18,580,306 18,476,220 53,808,247 44,056,127
----------- ------------ ------------ ------------ ------------ ------------
$11,633,159 $ 12,013,328 $ 17,698,180 $ 18,580,306 $ 53,776,026 $ 53,808,247
=========== ============ ============ ============ ============ ============
$ 4,265 -- $ 6,701 -- $ 21,134 --
=========== ============ ============ ============ ============ ============
43,479 58,252 102,444 195,888 292,021 1,154,976
36,782 26,721 36,176 43,444 107,426 139,044
(61,007) (164,456) (168,676) (262,446) (255,585) (485,530)
----------- ------------ ------------ ------------ ------------ ------------
19,254 (79,483) (30,056) (23,114) 143,862 808,490
=========== ============ ============ ============ ============ ============
</TABLE>
39
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Multi-State Municipal Series Trust (the "Fund") is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a non-diversified, open-end management investment company. The investment
objective of each Series is to provide a high level of current income exempt
from both Federal and the designated state income taxes consistent with
preservation of capital.
The Fund, organized on October 29, 1990, as a Massachusetts business trust, is
comprised of ten separate Series (the "Series"): the Arizona Series, the
California Series, the Florida Series, the Massachusetts Series, the Michigan
Series, the Minnesota Series, the New Jersey Series, the New York Series, the
Ohio Series and the Pennsylvania Series. Each of the Series commenced
operations on January 15, 1991, with the exception of the Arizona Series which
commenced operations on April 30, 1991.
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 INVESTMENT -- 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.
40
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999 (unaudited) 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") 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.
41
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999 (unaudited) continued
3. PLAN OF DISTRIBUTION
Morgan Stanley Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager, is the distributor of the Fund's shares and, in
accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act, finances certain expenses in connection with the distribution of
shares of the Fund.
Under the Plan, the expenses of certain activities and services provided by
Dean Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, and others who engage in or support distribution of the Fund's
shares or who service shareholder accounts, including overhead and telephone
expenses incurred in connection with the distribution of the Fund's shares, are
reimbursed.
Reimbursements for these expenses will be made in monthly payments by the Fund
to the Distributor, which will in no event exceed an amount equal to a payment
at the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the six months ended May 31, 1999, 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% 0.14% 0.14%
==== ==== ==== ==== ====
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- ---------- -------------
0.15% 0.14% 0.15% 0.13% 0.15%
==== ==== ==== ==== ====
</TABLE>
For the six months ended May 31, 1999, 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 ......... $ 70,819 $ 141,554 $ 125,439 $ 17,262 $33,997
======== ========= ========= ======== =======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- ----------- -------------
$ 18,778 $ 51,344 $ 14,386 $ 30,862 $48,853
======== ======== ======== ======== =======
</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.
42
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999 (unaudited) continued
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from the sales of portfolio securities,
excluding short-term investments, for the six months ended May 31, 1999 were as
follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------------- ------------ ------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases ......... $2,933,570 $7,875,480 $7,257,980 $ -- $1,317,691
========== ========== ========== ========== ==========
Sales ............. $2,523,535 $8,005,580 $6,433,710 $ 10,000 $1,452,462
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------------- ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases ......... $1,079,153 $2,850,140 $ 400,000 $1,103,076 $2,982,709
========== ========== ========== ========== ==========
Sales ............. $ 931,217 $1,715,491 $ 495,910 $1,631,011 $1,922,640
========== ========== ========== ========== ==========
</TABLE>
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended May 31, 1999
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 ......... $ 305 $ 739 $ 436 $ 99 $ 118
====== ======= ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
$ 52 $ 298 $ 80 $ 135 $ 349
====== ======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
--------- ------------ --------- --------------- ---------
<S> <C> <C> <C> <C> <C>
Accrued Pension Liability ......... $4,274 $10,542 $6,464 $1,481 $1,891
====== ======= ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
$ 955 $ 4,155 $1,279 $2,042 $4,842
====== ======= ====== ====== ======
</TABLE>
43
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999 (unaudited) continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At May 31, 1999, 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 ...... $ 336 $ 796 $ 56 $ 37 $ 144
====== ====== ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
----------- ------------ ---------- --------- -------------
$ 54 $ 61 $ 81 $ 141 $ 148
====== ====== ====== ====== ======
</TABLE>
5. FEDERAL INCOME TAX STATUS
At November 30, 1998, the following Series had an 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 the fiscal 1998 of approximately $1,600.
44
<PAGE>
(This page has been left blank intentionally.)
45
<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)
1999* 10.81 0.25 (0.21) 0.04 (0.25) (0.14) (0.39)
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)
1999* 11.22 0.26 (0.20) 0.06 (0.26) (0.19) (0.45)
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)
1999* 11.25 0.25 (0.23) 0.02 (0.25) (0.31) (0.56)
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)
1999* 11.33 0.26 (0.21) 0.05 (0.25) (0.11) (0.36)
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)
1999* 11.19 0.24 (0.16) 0.08 (0.24) (0.41) (0.65)
</TABLE>
- ---------------
* For the six months ended May 31, 1999 (unaudited).
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
(AFTER EXPENSES WERE ASSUMED)
-------------------------------------
NET ASSET NET ASSETS
VALUE END OF NET
END OF TOTAL PERIOD INVESTMENT
PERIOD RETURN+ (000'S) EXPENSES INCOME
- ------------- ---------------- ----------- --------------------- ---------------
<S> <C> <C> <C> <C>
$ 9.42 (7.16)% $ 47,628 0.62% 5.33%
10.65 19.21 50,290 0.65 (3) 5.33
10.59 4.63 46,248 0.65 (3) 5.12
10.64 5.64 41,891 0.66 (3) 5.04
10.81 6.56 41,655 0.65 (3) 4.77
10.46 0.38 (1) 41,342 0.65 (2)(3) 4.65 (2)
9.38 (8.65) 112,450 0.58 5.59
10.67 20.15 117,769 0.60 (3) 5.50
10.81 6.76 113,859 0.59 5.28
10.96 6.55 104,209 0.59 5.08
11.22 7.58 105,175 0.59 (3) 4.87
10.83 0.57 (1) 104,962 0.61 (2)(3) 4.76 (2)
9.60 (7.29) 71,458 0.61 5.34
10.88 19.54 74,058 0.63 (3) 5.34
10.86 5.03 70,542 0.62 (3) 5.13
10.97 6.10 65,088 0.62 5.02
11.25 7.58 61,262 0.62 (3) 4.69
10.71 0.19 (1) 59,286 0.62 (2)(3) 4.59 (2)
9.60 (7.71) 15,507 0.50 5.35
10.97 20.58 16,954 0.50 (3) 5.39
10.92 5.07 16,021 0.50 (3) 5.23
11.10 6.68 14,561 0.79 (3) 4.85
11.33 7.03 15,236 0.83 (3) 4.55
11.02 0.40 (1) 14,907 0.81 (2)(3) 4.55 (2)
9.46 (8.07) 19,831 0.50 5.44
10.81 20.69 21,673 0.50 (3) 5.49
10.78 5.09 20,863 0.50 (3) 5.27
10.94 6.52 19,512 0.72 (3) 4.95
11.19 7.23 17,759 0.78 (3) 4.63
10.62 0.66 (1) 17,202 0.80 (2)(3) 4.48 (2)
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
(BEFORE EXPENSES WERE ASSUMED)
- ---------------------------------
NET PORTFOLIO
INVESTMENT TURNOVER
EXPENSES INCOME RATE
- ----------------- --------------- ------------
<S> <C> <C>
0.63% 5.32% 11%
0.65 (3) 5.33 6
0.65 (3) 5.12 9
0.66 (3) 5.04 2
0.65 (3) 4.77 30
0.65 (2)(3) 4.65 (2) 6 (1)
0.59 5.58 12
0.60 (3) 5.50 5
0.59 5.28 19
0.59 5.08 17
0.59 (3) 4.87 24
0.61 (2)(3) 4.76 (2) 8 (1)
0.62 5.33 3
0.63 (3) 5.34 8
0.62 (3) 5.13 25
0.62 5.02 7
0.62 (3) 4.69 26
0.62 (2)(3) 4.59 (2) 11 (1)
0.78 5.07 10
0.79 (3) 5.11 7
0.82 (3) 4.91 11
0.81 (3) 4.83 10
0.83 (3) 4.55 31
0.81 (2)(3) 4.55 (2) --
0.75 5.19 9
0.77 (3) 5.22 22
0.76 (3) 5.01 5
0.74 (3) 4.93 3
0.78 (3) 4.63 40
0.80 (2)(3) 4.48 (2) 8 (1)
</TABLE>
47
<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)
1999* 10.82 0.22 (0.18) 0.04 (0.22) (0.09) (0.31)
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)
1999* 11.15 0.25 (0.18) 0.07 (0.25) (0.10) (0.35)
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)
1999* 11.41 0.24 (0.20) 0.04 (0.24) (0.36) (0.60)
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)
1999* 11.15 0.25 (0.20) 0.05 (0.25) (0.13) (0.38)
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)
1999* 11.15 0.26 (0.23) 0.03 (0.26) (0.10) (0.36)
</TABLE>
- ---------------
* For the six months ended May 31, 1999 (unaudited).
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
(AFTER EXPENSES WERE ASSUMED)
-------------------------------------
NET ASSET NET ASSETS
VALUE END OF NET
END OF TOTAL PERIOD INVESTMENT
PERIOD RETURN+ (000'S) EXPENSES INCOME
- ------------- ---------------- ----------- --------------------- ---------------
<S> <C> <C> <C> <C>
$ 9.28 (8.42)% $ 9,793 0.50% 5.41%
10.61 20.60 11,230 0.50 (3) 5.35
10.60 5.21 9,923 0.50 (3) 5.21
10.70 5.76 8,742 0.94 (3) 4.68
10.82 5.77 8,417 0.99 (3) 4.49
10.55 0.33 (1) 8,075 1.03 (2)(3) 4.20 (2)
9.47 (7.96) 45,497 0.64 5.38
10.73 19.60 47,889 0.67 (3) 5.42
10.70 4.93 44,829 0.66 (3) 5.23
10.88 6.99 41,520 0.66 5.02
11.15 7.49 41,803 0.67 (3) 4.77
10.87 0.55 (1) 41,337 0.68 (2)(3) 4.65 (2)
9.46 (8.96) 14,522 0.50 5.48
10.88 21.40 14,388 0.50 (3) 5.43
10.90 5.46 14,020 0.50 (3) 5.25
11.11 7.06 12,586 0.82 (3) 4.84
11.41 7.50 12,013 0.84 (3) 4.57
10.85 0.32 (1) 11,633 0.89 (2)(3) 4.46 (2)
9.42 (8.34) 20,693 0.50 5.31
10.80 21.02 23,104 0.50 (3) 5.42
10.77 5.04 21,207 0.50 (3) 5.23
10.94 6.67 18,476 0.73 (3) 4.90
11.15 6.84 18,580 0.75 (3) 4.70
10.82 0.42 (1) 17,698 0.76 (2)(3) 4.66 (2)
9.56 (7.84) 47,557 0.64 5.37
10.85 19.65 53,935 0.66 (3) 5.29
10.85 5.27 47,055 0.65 (3) 5.17
10.97 6.53 44,056 0.66 5.01
11.15 6.60 53,808 0.64 4.75
10.82 0.28 (1) 53,776 0.63 (2)(3) 4.74 (2)
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
(BEFORE EXPENSES WERE ASSUMED)
- -------------------------------------
NET PORTFOLIO
INVESTMENT TURNOVER
EXPENSES INCOME RATE
- --------------------- --------------- -------------
<S> <C> <C>
0.91% 5.00% 14%
0.98 (3) 4.88 3
0.96 (3) 4.75 5
0.97 (3) 4.65 --
0.99 (3) 4.49 20
1.03 (2)(3) 4.20 (2) 12 (1)
0.65 5.37 6
0.67 (3) 5.42 14
0.66 (3) 5.23 5
0.66 5.02 14
0.67 (3) 4.77 21
0.68 (2)(3) 4.65 (2) 4 (1)
0.82 5.16 14
0.85 (3) 5.09 24
0.84 (3) 4.91 22
0.84 (3) 4.82 4
0.84 (3) 4.57 33
0.89 (2)(3) 4.46 (2) 4 (1)
0.71 5.10 18
0.77 (3) 5.16 19
0.75 (3) 4.98 32
0.74 (3) 4.89 5
0.75 (3) 4.70 37
0.76 (2)(3) 4.66 (2) 6 (1)
0.66 5.35 19
0.66 (3) 5.29 8
0.65 (3) 5.17 --
0.66 5.01 8
0.64 4.75 26
0.63 (2)(3) 4.74 (2) 4 (1)
</TABLE>
49
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and
General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This report is submitted for the general information of shareholders
of the Fund. For more detailed information about the Fund, its officers
and trustees, fees, expenses and other pertinent information, please see
the prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
MORGAN STANLEY
DEAN WITTER
MULTI-STATE
MUNICIPAL SERIES
TRUST
THE ARIZONA SERIES
THE CALIFORNIA SERIES
THE FLORIDA SERIES
A DIRECT
ROUTE TO THE MASSACHUSETTS SERIES
TAX-FREE
INCOME THE MICHIGAN SERIES
THE MINNESOTA SERIES
THE NEW JERSEY SERIES
THE NEW YORK SERIES
THE OHIO SERIES
THE PENNSYLVANIA SERIES
SEMIANNUAL REPORT
MAY 31, 1999
