<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999
Two World Trade Center,
New York, New York 10048
DEAR SHAREHOLDER:
The U.S. economy, led by consumer demand, continued to experience robust growth
during the twelve-month period ended November 30, 1999. As a result, the
fixed-income markets anticipated that the Federal Reserve Board would change
monetary policy and remove the liquidity provided during last year's
international economic difficulties. Between June and November the Fed changed
monetary policy, raising the federal-funds rate 75 basis points in three moves,
to 5.50 percent. By November long-term interest rates had risen to levels last
seen more than two years ago.
MUNICIPAL MARKET OVERVIEW
Long-term insured municipal index yields began 1999 near a record low of 5.00
percent. By the end of November, this index yield had increased 100 basis
points to 6.00 percent. Because the prices of bonds move inversely to changes
in interest rates, higher yields have led to significantly lower bond prices.
The increase in the index yield translated to a 13 percent price decline for a
generic insured municipal bond with a 30-year maturity.
The municipal market outperformed U.S. Treasury bonds early in the year but
later gave ground. The ratio of municipal long-term yields to Treasury yields
declined from 99 percent at the end of 1998 to 91 percent in May 1999, then
reversed itself by rising to 95 percent by the end of November. A declining
ratio means municipals have outperformed Treasuries, and a rising ratio
indicates underperformance by municipals. Over the past five years the ratio
has ranged from a high of 99 percent to a low of 82 percent.
Higher interest rates slowed municipal underwriting in 1999. New-issue volume
declined 20 percent in the first 11 months. Refunding activity, the most
interest-rate-sensitive component of supply, dropped 50 percent.
PORTFOLIO STRUCTURE
The average duration of the 10 single-state portfolios that make up Morgan
Stanley Dean Witter Multi-State Municipal Series Trust was
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS November 30, 1999, continued
maintained at 7 years during the past 12 months. Average duration is a measure
of sensitivity to interest-rate changes. Weighted average bond maturities
ranged from 15 to 18 years and average call protection was 6 years. Several of
the individual state portfolios hold issues in the refunded-bond category.
These bonds have been refinanced and will be redeemed on the dates shown in the
individual state portfolios.
On the following pages we have summarized details regarding the various state
series for your convenience. Here you will find information on credit quality,
duration, maturity, call protection, net asset values, distributions and
performance. The accompanying charts compare the performance of each series to
that of the Lehman Brothers Municipal Bond Index.
LOOKING AHEAD
The Federal Reserve Board raised interest rates twice in the summer and again
in November 1999. These moves confirmed its previously disclosed bias of
becoming less accommodative in the face of continued strong domestic economic
growth. We anticipate that the central bank may raise short-term interest rates
further and influence the level of long-term rates. However, we believe
municipal bonds continue to offer tax conscious investors good long-term value
relative to Treasuries.
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
2
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FUND PERFORMANCE November 30, 1999
ARIZONA
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.53)%(1) 6.48%(1) 6.09%(1)
(6.43)%(2) 5.61%(2) 5.59%(2)
Fund Lehman(4)
Apr 30, 1991 9.6 10
Nov 30, 1991 10.143 10.594
Nov 30, 1992 11.268 11.657
Nov 30, 1993 12.554 12.949
Nov 30, 1994 11.654 12.269
Nov 30, 1995 13.894 14.588
Nov 30, 1996 14.538 15.446
Nov 30, 1997 15.358 16.554
Nov 30, 1998 16.367 17.838
Nov 30, 1999 15.953(3) 17.647
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
CALIFORNIA
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(3.10)%(1) 7.34%(1) 6.74%(1)
(6.98)%(2) 6.46%(2) 6.25%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.588 10.833
Nov 30, 1992 11.671 11.92
Nov 30, 1993 13.162 13.241
Nov 30, 1994 12.022 12.546
Nov 30, 1995 14.445 14.917
Nov 30, 1996 15.442 15.795
Nov 30, 1997 16.433 16.927
Nov 30, 1998 17.679 18.241
Nov 30, 1999 17.130(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
FLORIDA
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.70)%(1) 6.88%(1) 6.52%(1)
(6.59)%(2) 6.01%(2) 6.03%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.449 10.833
Nov 30, 1992 11.589 11.92
Nov 30, 1993 13.002 13.241
Nov 30, 1994 12.055 12.546
Nov 30, 1995 14.411 14.917
Nov 30, 1996 15.135 15.795
Nov 30, 1997 16.059 16.927
Nov 30, 1998 17.275 18.241
Nov 30, 1999 16.810(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
3
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FUND PERFORMANCE November 30, 1999, continued
MASSACHUSETTS
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.29)%(1) 7.17%(1) 6.86%(1)
(6.20)%(2) 6.29%(2) 6.37%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.548 10.833
Nov 30, 1992 11.727 11.92
Nov 30, 1993 13.259 13.241
Nov 30, 1994 12.236 12.546
Nov 30, 1995 14.755 14.917
Nov 30, 1996 15.503 15.795
Nov 30, 1997 16.538 16.927
Nov 30, 1998 17.701 18.241
Nov 30, 1999 17.296(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
MICHIGAN
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.40)%(1) 7.17%(1) 6.76%(1)
(6.31)%(2) 6.30%(2) 6.27%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.516 10.833
Nov 30, 1992 11.754 11.92
Nov 30, 1993 13.197 13.241
Nov 30, 1994 12.132 12.546
Nov 30, 1995 14.642 14.917
Nov 30, 1996 15.387 15.795
Nov 30, 1997 16.389 16.927
Nov 30, 1998 17.574 18.241
Nov 30, 1999 17.152(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
MINNESOTA
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.46)%(1) 6.72%(1) 6.06%(1)
(6.36)%(2) 5.85%(2) 5.58%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.312 10.833
Nov 30, 1992 11.334 11.92
Nov 30, 1993 12.767 13.241
Nov 30, 1994 11.692 12.546
Nov 30, 1995 14.1 14.917
Nov 30, 1996 14.835 15.795
Nov 30, 1997 15.689 16.927
Nov 30, 1998 16.594 18.241
Nov 30, 1999 16.186(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
4
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FUND PERFORMANCE November 30, 1999, continued
NEW JERSEY
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.44)%(1) 7.08%(1) 6.66%(1)
(6.34)%(2) 6.21%(2) 6.17%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.521 10.833
Nov 30, 1992 11.714 11.92
Nov 30, 1993 13.123 13.241
Nov 30, 1994 12.079 12.546
Nov 30, 1995 14.445 14.917
Nov 30, 1996 15.158 15.795
Nov 30, 1997 16.218 16.927
Nov 30, 1998 17.432 18.241
Nov 30, 1999 17.007(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
NEW YORK
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.90)%(1) 7.42%(1) 6.83%(1)
(6.79)%(2) 6.55%(2) 6.34%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.63 10.833
Nov 30, 1992 11.73 11.92
Nov 30, 1993 13.244 13.241
Nov 30, 1994 12.058 12.546
Nov 30, 1995 14.638 14.917
Nov 30, 1996 15.437 15.795
Nov 30, 1997 16.526 16.927
Nov 30, 1998 17.766 18.241
Nov 30, 1999 17.250(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
5
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FUND PERFORMANCE November 30, 1999, continued
OHIO
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(2.29)%(1) 7.20%(1) 6.63%(1)
(6.20)%(2) 6.33%(2) 6.14%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.402 10.833
Nov 30, 1992 11.558 11.92
Nov 30, 1993 13.083 13.241
Nov 30, 1994 11.991 12.546
Nov 30, 1995 14.511 14.917
Nov 30, 1996 15.243 15.795
Nov 30, 1997 16.26 16.927
Nov 30, 1998 17.371 18.241
Nov 30, 1999 16.974(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
PENNSYLVANIA
GROWTH OF $10,000
- ---------------------------------------------------------
($ IN THOUSANDS)
- ---------------------------------------------------------
Average Annual Total Returns
- ---------------------------------------------------------
1 Year 5 Years Life of Fund
(3.02)%(1) 6.76%(1) 6.48%(1)
(6.90)%(2) 5.90%(2) 5.99%(2)
Fund Lehman(4)
Jan 15, 1991 9.6 10
Nov 30, 1991 10.442 10.833
Nov 30, 1992 11.64 11.92
Nov 30, 1993 13.112 13.241
Nov 30, 1994 12.084 12.546
Nov 30, 1995 14.458 14.917
Nov 30, 1996 15.22 15.795
Nov 30, 1997 16.212 16.927
Nov 30, 1998 17.283 18.241
Nov 30, 1999 16.762(3) 18.045
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable front-end sales charge (4%). See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on November 30, 1999.
(4) The Lehman Brothers Municipal Bond Index tracks the performance of municipal
bonds with maturities of 2 years or greater and a minimum credit rating of
Baa or BBB, as rated by Moody's Investor Service, Inc. or Standard & Poor's
Corp., respectively. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
6
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
PORTFOLIO SUMMARY November 30, 1999 (unaudited)
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
SERIES SERIES SERIES SERIES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Credit Ratings (1):
Aaa or AAA .................................. 50% 69% 74% 57%
Aa or AA .................................... 27 18 12 16
A or A ...................................... 23 7 7 9
Baa or BBB .................................. -- 6 7 18
Ba or BB .................................... -- -- -- --
Non-Rated (2) ............................... -- -- -- --
Long-Term Portfolio Distribution by Call Date
2000 ...................................... 5% -- 5% 5%
2001 ...................................... 5 10% 11 8
2002 ...................................... 31 16 29 15
2003 ...................................... 6 8 4 22
2004 ...................................... 9 -- -- 4
2005 ...................................... 3 -- 6 9
2006 ...................................... -- 12 7 7
2007 ...................................... -- -- 6 --
2008 ...................................... 15 18 6 12
2009 ...................................... 5 6 7 4
2010+ ..................................... 21 30 19 14
Average Weighted (3):
Maturity .................................. 16 Years 17 Years 17 Years 15 Years
Call Protection ........................... 6 Years 8 Years 6 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
November 30, 1999 ......................... $ 9.90 $ 10.18 $ 10.10 $ 10.45
Distributions (4) ........................... $ 0.65 $ 0.71 $ 0.87 $ 0.63
Total Return (5):
12 months ended 11/30/99 .................. (2.53)% (3.10)% (2.70)% (2.29)%
</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 12 months ended November 30, 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.
8
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
SERIES SERIES SERIES SERIES SERIES SERIES
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
85% 33% 60% 41% 62% 68%
10 42 21 10 23 15
5 11 8 34 7 13
-- 8 8 10 8 --
-- -- -- -- -- --
-- 6 3 5 -- 4
-- 3% 5% -- 3% --
9% 5 10 -- 14 12%
34 25 25 13% 27 28
7 30 7 11 2 13
-- -- -- 5 -- --
14 -- 13 15 15 4
3 5 6 25 -- 4
-- -- 3 6 7 4
23 18 18 11 10 21
5 8 10 5 13 6
5 6 3 9 9 8
17 Years 15 Years 16 Years 17 Years 17 Years 18 Years
5 Years 5 Years 5 Years 6 Years 6 Years 5 Years
7 Years 7 Years 7 Years 7 Years 7 Years 7 Years
$ 11.19 $ 10.82 $ 11.15 $ 11.41 $ 11.15 $ 11.15
$ 10.03 $ 10.03 $ 10.22 $ 10.24 $ 10.27 $ 10.19
$ 0.91 $ 0.53 $ 0.67 $ 0.86 $ 0.63 $ 0.64
(2.40)% (2.46)% (2.44)% (2.90)% (2.29)% (3.02)%
</TABLE>
9
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ARIZONA TAX-EXEMPT MUNICIPAL BONDS (90.9%)
General Obligation (13.2%)
$ 1,000 Paradise Valley Unified School District #69, Ser B 1995 (MBIA) .......... 5.25 % 07/01/15 $ 956,860
Phoenix,
1,000 Refg Ser 1992 ......................................................... 6.375 07/01/13 1,057,650
1,000 Refg Ser 1999 B ....................................................... 4.50 07/01/20 822,950
1,000 Tucson, Refg Ser 1998 ................................................... 5.50 07/01/18 977,200
1,000 Puerto Rico, Public Improvement Ser 1998 (MBIA) ......................... 6.00 07/01/16 1,048,320
--------- -----------
5,000 4,862,980
--------- -----------
Educational Facilities Revenue (5.5%)
1,000 Arizona Board of Regents, Arizona State University Ser 1992 A ........... 5.50 07/01/19 958,330
1,000 University of Arizona, Telecommunications Ser 1991 COPs ................. 6.50 07/15/12 1,058,030
--------- -----------
2,000 2,016,360
--------- -----------
Electric Revenue (4.5%)
820 Salt River Project Agricultural Improvement & Power District,
Refg 1992 Ser D ....................................................... 6.25 01/01/27 831,119
1,000 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ................ 4.50 07/01/19 835,580
--------- -----------
1,820 1,666,699
--------- -----------
Hospital Revenue (10.9%)
2,000 Maricopa County Industrial Development Authority, Catholic Healthcare
West 1992 Ser A (MBIA) ................................................ 5.75 07/01/11 2,054,100
865 Mesa Industrial Development Authority, Discovery Health Ser 1999 A
(MBIA) ................................................................ 5.875 01/01/16 867,396
1,100 Pima County Industrial Development Authority, Carondelet Health
--------- Care Corp Ser 1993 (MBIA) ............................................. 5.25 07/01/13 1,086,283
-----------
3,965 4,007,779
--------- -----------
Industrial Development/Pollution Control Revenue (9.8%)
1,000 Greenlee County Industrial Development Authority, Phelps Dodge Corp
Refg 1994 ............................................................. 5.45 06/01/09 958,500
1,000 Mohave County Industrial Development Authority, Citizens Utilities Co
1993 Ser B (AMT) ...................................................... 5.80 11/15/28 935,150
1,700 Santa Cruz County Industrial Development Authority, Citizens Utilities Co
--------- Ser 1991 (AMT) ........................................................ 7.15 02/01/23 1,722,899
-----------
3,700 3,616,549
--------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue - Multi-Family (2.6%)
$ 925 Pima County Industrial Development Authority, Rancho Mirage Ser 1992
------ (AMT) (AGRC) ............................................................. 7.05 % 04/01/22 $ 967,041
----------
Public Facilities Revenue (7.7%)
Arizona,
500 Refg Ser 1992 B COPs (AMBAC) ............................................. 6.25 09/01/10 525,625
500 Ser 1991 COPs (FSA) ...................................................... 6.25 09/01/11 522,325
1,000 Phoenix Civic Improvement Corporation, Phoenix Municipal
Courthouse Sr Lien Excise Tax Ser 1999 A ................................. 5.25 07/01/24 908,930
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
------ (AMBAC) .................................................................. 5.00 07/01/28 876,720
----------
3,000 2,833,600
------ ----------
Transportation Facilities Revenue (10.5%)
1,000 Phoenix, Street & Highway User Refg Ser 1993 ............................... 5.125 07/01/11 989,200
Tucson,
1,000 Street & Highway User Sr Lien Refg Ser 1993 .............................. 5.50 07/01/09 1,019,670
1,000 Street & Highway User Sr Lien Refg Ser 1996 (MBIA) ....................... 6.00 07/01/10 1,072,870
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................. 4.75 07/01/38 791,870
------ ----------
4,000 3,873,610
------ ----------
Water & Sewer Revenue (18.3%)
400 Arizona Wastewater Management Authority, Wastewater Ser 1992 A
(AMBAC) .................................................................. 5.95 07/01/12 409,624
1,000 Arizona Water Infrastructure Finance Authority, Water Quality Ser 1998 A
(MBIA) ................................................................... 5.00 07/01/17 908,380
1,000 Chandler, Water & Sewer Refg Ser 1992 (FGIC) ............................... 6.25 07/01/13 1,050,260
1,000 Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) ........................... 6.50 07/01/22 1,050,271
1,000 Mesa, Utility Ser 1998 (MBIA) .............................................. 4.50 07/02/18 831,310
1,000 Phoenix Civic Improvement Corporation, Wastewater Refg Ser 1993 ............ 4.75 07/01/23 835,560
1,000 Pima County Metropolitan Domestic Water Improvement District,
Refg Ser 1999 (FGIC) ..................................................... 4.875 01/01/19 877,250
1,000 Scottsdale Water & Sewer Refg Ser 1998 E ................................... 4.50 07/01/23 807,640
------ ----------
7,400 6,770,295
------ ----------
Refunded (7.9%)
1,150 Arizona Health Facilities Authority, Phoenix Baptist Hospital & Medical
Center Inc & Medical Environments Inc Ser 1992 (MBIA) (ETM) .............. 6.25 09/01/11 1,216,654
600 Arizona Wastewater Management Authority, Wastewater Refg Ser 1992 A
(AMBAC) .................................................................. 5.95 07/01/02+ 633,498
1,000 Tucson, Water Refg Ser 1991 ................................................ 6.50 07/01/01+ 1,049,270
------ ----------
2,750 2,899,422
------ ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 34,560 TOTAL ARIZONA TAX-EXEMPT MUNICIPAL BONDS
--------- (Identified Cost $33,994,276)................................................................. $33,514,335
-----------
SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.1%)
900 Maricopa County, Arizona Public Service Co Ser 1994 C (Demand 12/01/99) 3.75*% 05/01/29 900,000
1,700 Tempe, Excise Tax Ser 1998 (Demand 12/01/99) .......................... 3.75* 07/01/23 1,700,000
--------- -----------
2,600 TOTAL SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS
--------- (Identified Cost $2,600,000) ................................................................. 2,600,000
-----------
$ 37,160 TOTAL INVESTMENTS (Identified Cost $36,594,276) (a) .................. 98.0% 36,114,335
=========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ...................... 2.0 752,859
-------- -----------
NET ASSETS ........................................................... 100.0% $36,867,194
======== ===========
</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
$790,898 and the aggregate gross unrealized depreciation is
$1,270,839, resulting in net unrealized depreciation of $479,941.
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
12
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (90.8%)
General Obligation (12.4%)
California,
$ 2,000 Various Purpose 04/01/93 (FSA) .......................................... 5.50 % 04/01/19 $ 1,930,620
2,000 Refg Dtd 10/01/98 (MBIA) ................................................ 4.50 10/01/28 1,588,460
2,500 Carlsbad Unified School District, Ser 1997 (FGIC) ......................... 0.00 11/01/16 942,425
3,000 Los Angeles Unified School District, 1997 Ser B (FGIC) .................... 5.00 07/01/23 2,647,920
3,000 Mojave Water Agency, Impr Dist M Morongo Basin Pipeline Refg
Ser 1996 (FGIC) ......................................................... 5.80 09/01/22 2,973,510
2,000 Puerto Rico, Public Improvement Ser 1998 (Secondary MBIA) ................. 4.875 07/01/23 1,738,320
------- -----------
14,500 11,821,255
------- -----------
Educational Facilities Revenue (5.5%)
California Educational Facilities Authority,
1,360 Loyola Marymount University Refg Ser 1992 ............................... 6.00 10/01/14 1,387,581
1,500 University of San Diego Refg Ser 1998 (AMBAC) ........................... 4.75 10/01/15 1,362,750
2,500 University of Southern California Ser 1993 B ............................ 5.80 10/01/15 2,534,300
------- -----------
5,360 5,284,631
------- -----------
Electric Revenue (9.8%)
2,000 Burbank, Electric Ser 1998 (FSA) .......................................... 4.75 06/01/23 1,689,400
2,000 Los Angeles Department of Water & Power, Refg Issue of 1993
(Secondary AMBAC) ....................................................... 5.375 09/01/23 1,871,400
1,000 Sacramento Municipal Utility District, Refg 1993 Ser D (MBIA) ............. 5.625 11/15/15 994,250
5,000 Southern California Public Power Authority, Mead - Phoenix (AMBAC) ........ 5.15 07/01/15 4,772,900
------- -----------
10,000 9,327,950
------- -----------
Hospital Revenue (11.2%)
California Health Facilities Financing Authority,
2,000 Catholic Health Corp Ser 1992 A (MBIA) .................................. 6.00 07/01/13 2,084,280
3,000 Scripps Memorial Hospitals Ser 1992 A (MBIA) ............................ 6.375 10/01/22 3,061,290
2,000 California Statewide Communities Development Authority, Cedars-Sinai
Medical Center Ser 1992 COPs ............................................ 6.50 08/01/12 2,157,240
4,000 Duarte, City of Hope National Medical Center Ser 1999 A COPs .............. 5.25 04/01/19 3,420,400
------- -----------
11,000 10,723,210
------- -----------
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 1,551,825
-----------
Mortgage Revenue -- Multi-Family (2.2%)
2,000 California Housing Finance Agency, Rental II 1992 Ser B ................... 6.70 08/01/15 2,092,080
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- CALIFORNIA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Single Family (5.0%)
$ 690 California Housing Finance Agency, Home 1991 Ser C (AMT) (MBIA) .............. 7.00 % 08/01/23 $ 717,331
2,880 California Rural Home Finance Authority, 1997 Ser A-2 (AMT) .................. 7.00 09/01/29 3,119,933
935 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
-------- Ser C ...................................................................... 6.85 10/15/23 976,738
4,505 ------------
-------- 4,814,002
Public Facilities Revenue (5.7%) ------------
2,000 San Diego County, Downtown Courthouse Refg 1998 COPs (AMBAC) ................. 4.50 05/01/23 1,622,980
2,000 San Francisco Redevelopment Agency, Ser 1998 (FSA) ........................... 5.00 07/01/25 1,751,800
2,000 San Jose Financing Authority, Convention Center Refg 1993 Ser C .............. 6.375 09/01/13 2,094,400
-------- ------------
6,000 5,469,180
-------- ------------
Tax Allocation Revenue (1.1%)
1,000 Industry Urban-Development Agency, Transportation-Distribution-Industrial
-------- Redev Proj #3 1992 Refg .................................................... 6.90 11/01/16 1,056,050
Transportation Facilities Revenue (9.7%) ------------
5,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Ser 1999
(MBIA) ..................................................................... 5.125 01/15/19 4,574,950
2,000 Los Angeles County Transportation Commission, Sales Tax Ser 1991-B ........... 6.50 07/01/13 2,097,280
6,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refg
-------- Ser 1997 A (MBIA) .......................................................... 0.00 01/15/15 2,541,780
13,000 ------------
-------- 9,214,010
Water & Sewer Revenue (14.6%) -------------
1,000 Contra Costa Water Authority, 1992 Ser E (AMBAC) ............................. 6.25 10/01/12 1,101,310
East Bay Municipal Utility District,
3,000 Water Refg Ser 1992 ........................................................ 6.00 06/01/20 3,012,870
2,000 Water Refg Ser 1998 (MBIA) ................................................. 4.75 06/01/34 1,624,960
2,000 Metropolitan Water District of Southern California, Waterworks 1997 Ser A 5.00 07/01/26 1,747,760
2,000 San Francisco Public Utilities Commission, Water 1992 Refg Ser A ............. 6.00 11/01/15 2,024,920
3,000 Santa Rosa, Wastewater Refg 1996 Ser A (FGIC) ................................ 4.75 09/01/16 2,685,810
2,000 Stockton, Wastewater 1998 Ser A COPs (MBIA) .................................. 5.00 09/01/23 1,759,820
-------- ------------
15,000 13,957,450
-------- ------------
Refunded (12.0%)
2,000 Los Angeles County, 1991 Master Refg COPs .................................... 6.708 05/01/01+ 2,104,940
4,000 San Diego County Water Authority, Ser 1991-B COPs (MBIA) ..................... 6.30 04/27/06+ 4,382,040
5,000 California Statewide Communities Development Authority, UniHealth
-------- America 1993 Ser A COPs (AMBAC) (ETM) ...................................... 5.50 10/01/14 5,014,100
11,000 ------------
-------- 11,501,080
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
CALIFORNIA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 94,865 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $87,644,283)................................................................ $86,812,723
-----------
SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.8%)
1,800 California Economic Development Financing Authority, Independent
System Operator Corp 1998 Ser D (Demand 12/01/99) ................. 3.70*% 04/01/08 1,800,000
4,000 California Statewide Communities Development Authority, Sutter Health
Ser 1995 COPs (AMBAC) (Demand 12/01/99) ........................... 3.55* 08/15/27 4,000,000
1,600 Irvine Ranch Water District, Ser 1993 A (Demand 12/01/99) ........... 3.85* 05/01/09 1,600,000
-------- -----------
7,400 TOTAL SHORT-TERM CALIFORNIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $7,400,000)................................................................. 7,400,000
-----------
$102,265 TOTAL INVESTMENTS (Identified Cost $95,044,283) (a)............................. 98.6% 94,212,723
======== CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................................. 1.4 1,302,584
-------- -----------
NET ASSETS ..................................................................... 100.0% $95,515,307
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$2,269,928 and the aggregate gross unrealized depreciation is
$3,101,488, resulting in net unrealized depreciation of $831,560.
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
15
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA TAX-EXEMPT MUNICIPAL BONDS (86.7%)
General Obligation (2.9%)
$ 1,500 Florida Board of Education, Capital Outlay Refg Ser 1992 A ................... 6.40 % 06/01/19 $ 1,557,075
------- -----------
Educational Facilities Revenue (2.8%)
1,500 Volusia County Educational Facilities Authority, Embry-Riddle
------- Aeronautical University Ser 1996 A ......................................... 6.125 10/15/16 1,506,495
-----------
Electric Revenue (17.5%)
2,000 Jacksonville Electric Authority, St Johns River Power Park Issue 2 Ser 7 ..... 5.50 10/01/14 2,001,200
Lakeland,
4,000 Electric & Water Refg Ser 1999 A (MBIA) .................................... 0.00 10/01/14 1,735,040
1,000 Electric & Water Refg Ser 1999 B (FSA) ..................................... 6.05 10/01/14 1,061,470
1,000 Orlando Utilities Commission, Refg Ser 1993 A ................................ 5.25 10/01/14 974,790
Puerto Rico Electric Power Authority,
2,000 Power Ser O ................................................................ 5.00 07/01/12 1,916,940
2,000 Power Ser DD (FSA) ......................................................... 4.50 07/01/19 1,671,160
------- -----------
12,000 9,360,600
------- -----------
Hospital Revenue (9.4%)
1,000 Alachua County Health Facilities Authority, Shands Teaching Hospital &
Clinics Ser 1996 A (MBIA) .................................................. 6.25 12/01/11 1,079,310
1,000 Jacksonville, University Medical Center Inc Ser 1992 (Connie Lee) ............ 6.60 02/01/21 1,055,900
1,000 Orange County Health Facilities Authority, Adventist Health/Sunbelt
Ser 1995 (AMBAC) ........................................................... 5.25 11/15/20 910,070
935 Polk County Industrial Development Authority, Winter Haven Hospital
1985 Ser 2 (MBIA) .......................................................... 6.25 09/01/15 979,917
1,000 Tampa, Catholic Health East Ser 1998 A-1 (MBIA) .............................. 5.50 11/15/14 998,960
------- -----------
4,935 5,024,157
------- -----------
Industrial Development/Pollution Control Revenue (9.5%)
Citrus County,
500 Florida Power Corp Refg Ser 1992 B ......................................... 6.35 02/01/22 506,215
2,000 Florida Power Corp Refg Ser 1992 A ......................................... 6.625 01/01/27 2,054,380
1,500 St Johns County Industrial Development Authority, Professional Golf Hall
of Fame Ser 1996 (MBIA) .................................................... 5.80 09/01/16 1,511,940
1,000 St Lucie County, Florida Power & Light Co Ser 1992 (AMT) ..................... 6.70 05/01/27 1,040,900
------- -----------
5,000 5,113,435
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Single Family (3.3%)
$ 245 Brevard County Housing Finance Authority, Refg Ser 1991 B (FSA) ........... 7.00 % 03/01/13 $ 251,169
225 Florida Housing Finance Agency, GNMA Collateral 1990 Ser G-1 (AMT) ........ 7.90 03/01/22 232,459
1,230 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
Ser C ................................................................... 6.85 10/15/23 1,284,907
-------- -----------
1,700 1,768,535
-------- -----------
Public Facilities Revenue (1.9%)
1,000 Palm Beach County, Criminal Justice Ser 1997 (FGIC) ....................... 5.75 06/01/13 1,040,070
-------- -----------
Recreational Facilities Revenue (1.9%)
1,000 Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) ............... 6.15 10/01/20 1,015,320
-------- -----------
Resource Recovery Revenue (2.0%)
1,000 Lee County, Solid Waste Ser 1991 A (AMT) (MBIA) ........................... 6.50 10/01/13 1,049,810
-------- -----------
Transportation Facilities Revenue (20.0%)
1,000 Dade County, Aviation 1992 Ser B (AMT) (MBIA) ............................. 6.60 10/01/22 1,064,870
Greater Orlando Aviation Authority,
1,000 Ser 1997 (AMT) (FGIC) ................................................... 5.75 10/01/11 1,032,000
750 Ser 1992 A (AMT) (FGIC) ................................................. 6.50 10/01/12 795,105
1,000 Hillsborough County Aviation Authority, Tampa Int'l Airport
Refg Ser 1993 B (FGIC) .................................................. 5.60 10/01/19 972,160
1,500 Lee County, Refg Ser 1991 (AMBAC) ......................................... 6.00 10/01/17 1,508,640
3,000 Mid-Bay Bridge Authority, Refg Ser 1993 A (AMBAC) ......................... 5.95 10/01/22 3,013,020
1,500 Osceola County, Osceola Parkway (MBIA) .................................... 6.10 04/01/17 1,556,385
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 791,870
-------- -----------
10,750 10,734,050
-------- -----------
Water & Sewer Revenue (13.5%)
2,000 Dade County, Water & Sewer Ser 1995 (FGIC) ................................ 5.50 10/01/25 1,894,420
1,500 Florida Governmental Utility Authority, Golden Gate Ser 1999 (AMBAC) ...... 5.25 07/01/18 1,408,455
2,000 Lee County, Water & Sewer 1999 Ser A (AMBAC) .............................. 4.75 10/01/23 1,682,760
1,000 Sunrise, Utility Refg Ser 1998 (AMBAC) .................................... 5.50 10/01/18 980,390
1,500 Tampa Bay Water, Utility Ser 1998 B (FGIC) ................................ 4.75 10/01/27 1,240,650
-------- -----------
8,000 7,206,675
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Refunded (2.0%)
$ 1,000 South Broward Hospital District, Ser 1991 B & C (AMBAC) ........... 6.611% 05/01/01+ $ 1,047,620
------- -----------
49,385 TOTAL FLORIDA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $46,610,954).................................................................. 46,423,842
-----------
SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS (9.7%)
2,500 Collier County Health Facilities Authority, Cleveland Clinic
Foundation Ser 1999 (Demand 12/01/99) ........................... 3.70* 01/01/33 2,500,000
2,700 Jacksonville Pollution Control Financing Authority, Florida Power &
Light Co Ser 1995 (Demand 12/01/99) ............................... 3.80* 05/01/29 2,700,000
------- -----------
5,200 TOTAL SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $5,200,000)................................................................... 5,200,000
-----------
$54,585 TOTAL INVESTMENTS (Identified Cost $51,810,954) (a)............................ 96.4% 51,623,842
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................................ 3.6 1,931,130
-------- -----------
NET ASSETS .................................................................... 100.0% $53,554,972
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
* 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
$1,181,182 and the aggregate gross unrealized depreciation is
$1,368,294, resulting in net unrealized depreciation of $187,112.
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
18
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MASSACHUSETTS
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS (92.3%)
Educational Facilities Revenue (23.5%)
Massachusetts Health & Educational Facilities Authority,
$ 400 Boston University 1991 Ser K & L (MBIA) .............................. 6.66 % 10/01/31 $ 418,176
500 Brandeis University 1998 Ser I (MBIA) ................................ 4.75 10/01/28 408,350
400 Suffolk University Ser B (Connie Lee) ................................ 6.25 07/01/12 417,620
300 Suffolk University Ser C (Connie Lee) ................................ 5.75 07/01/26 287,010
500 University of Massachusetts Foundation Inc/Medical School Research
Ser A (Connie Lee) ................................................. 6.00 07/01/23 496,230
Massachusetts Industrial Finance Agency,
500 College of The Holy Cross 1996 Issue (MBIA) .......................... 5.50 03/01/16 488,410
300 Mount Holyoke College Refg Ser 1992 A (MBIA) ......................... 6.30 07/01/13 313,308
------ -----------
2,900 2,829,104
------ -----------
Electric Revenue (8.5%)
500 Massachusetts Municipal Wholesale Electric Company, Power Supply
1992 Ser C ........................................................... 6.625 07/01/18 511,530
500 Puerto Rico Electric Power Authority, Power Ser X ...................... 6.00 07/01/15 508,795
------ -----------
1,000 1,020,325
------ -----------
Hospital Revenue (16.8%)
500 Boston, Boston City Hospital - FHA Insured Mtge Refg Ser B ............. 5.75 02/15/13 500,320
Massachusetts Health & Educational Facilities Authority,
500 Lahey Clinic Medical Center Ser B (MBIA) ............................. 5.625 07/01/15 490,570
1,000 Massachusetts General Hospital Ser F (AMBAC) ......................... 6.00 07/01/15 1,031,460
------ -----------
2,000 2,022,350
------ -----------
Industrial Development/Pollution Control Revenue (8.1%)
1,000 Massachusetts Industrial Finance Agency, Eastern Edison Co Refg Ser 1993 5.875 08/01/08 970,540
------ -----------
Mortgage Revenue -- Multi-Family (3.9%)
460 Massachusetts Housing Finance Agency, Rental 1994 Ser A (AMT) (AMBAC) 6.60 07/01/14 478,096
------ -----------
Mortgage Revenue -- Single Family (1.9%)
220 Massachusetts Housing Finance Agency, Ser 21 (AMT) ..................... 7.125 06/01/25 227,020
------ -----------
Student Loan Revenue (4.5%)
105 Massachusetts Educational Facilities Authority, Education Loan Issue D
Ser A 1991 (AMT) (MBIA) .............................................. 7.25 01/01/09 108,902
400 New England Education Loan Marketing Corporation, 1992 Sub Issue H
(AMT) .................................................................. 6.90 11/01/09 431,060
------ -----------
505 539,962
------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MASSACHUSETTS
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (8.5%)
$ 500 Massachusetts Bay Transportation Authority, 1998 Ser A (MBIA) .......... 5.50% 03/01/15 $ 495,880
500 Massachusetts Port Authority, Refg Ser 1998 A .......................... 5.75 07/01/12 521,385
------- -----------
1,000 1,017,265
------- -----------
Water & Sewer Revenue (12.0%)
500 Boston Water & Sewer Commission, 1992 Ser A ............................ 5.75 11/01/13 515,770
500 Massachusetts Water Pollution Abatement Trust, Pool Ser 2 .............. 5.70 02/01/12 511,760
500 Massachusetts Water Resources Authority, 1998 Ser A (FSA) .............. 4.75 08/01/27 410,115
------- -----------
1,500 1,437,645
------- -----------
Refunded (4.6%)
500 Massachusetts, Refg 1992 Ser B (ETM) ................................... 6.50 08/01/08 551,825
------- -----------
11,085 TOTAL MASSACHUSETTS TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $10,960,050)................................................................. 11,094,132
-----------
SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.8%)
Massachusetts Health & Educational Facilities Authority,
300 Capital Assets Ser D (MBIA) (Demand 12/01/99) ........................ 3.80* 01/01/35 300,000
400 Wellesley College Ser G (Demand 12/01/99) ............................ 3.60* 07/01/39 400,000
------- -----------
700 TOTAL SHORT-TERM MASSACHUSETTS TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $700,000) ................................................................... 700,000
-----------
$11,785 TOTAL INVESTMENTS (Identified Cost $11,660,050) (a) ............................. 98.1% 11,794,132
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................. 1.9 234,432
-------- -----------
NET ASSETS ...................................................................... 100.0% $12,028,564
======== ===========
</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
$358,176 and the aggregate gross unrealized depreciation is
$224,094, resulting in net unrealized appreciation of $134,082.
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
20
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN TAX-EXEMPT MUNICIPAL BONDS (89.5%)
General Obligation (14.6%)
$ 300 Berkley School District, 1999 Refg (FGIC) ................................. 4.75 % 01/01/19 $ 257,100
500 Chelsea School District, Bldg & Site Refg 1998 (FGIC) ..................... 5.00 05/01/25 432,850
500 Detroit, Ser 1997-A (MBIA) ................................................ 5.00 04/01/18 446,860
445 Mona Shores Public Schools, 1995 Bldg & Site (FGIC) ....................... 5.80 05/01/17 445,294
500 Southgate Community School District, Refg Ser 1999 (FGIC) ................. 5.75 05/01/15 502,860
200 Puerto Rico, Public Impr Ser 1998 (Secondary MBIA) ........................ 4.875 07/01/23 173,832
-------- -----------
2,445 2,258,796
-------- -----------
Educational Facilities Revenue (10.3%)
800 Central Michigan University, Refg Ser 1993 (AMBAC) ........................ 5.50 10/01/10 809,400
800 Oakland University, Board of Trustees, Ser 1995 (MBIA) .................... 5.75 05/15/26 774,648
-------- -----------
1,600 1,584,048
-------- -----------
Electric Revenue (6.0%)
500 Wyandotte, Electric Refg 1992 (MBIA) ...................................... 6.25 10/01/17 509,955
500 Puerto Rico Electric Power Authority, Power Ser DD (FSA) .................. 4.50 07/01/19 417,790
-------- -----------
1,000 927,745
-------- -----------
Hospital Revenue (5.7%)
500 Grand Traverse County Hospital, Munson Healthcare Ser 1998 A (AMBAC)....... 4.75 07/01/22 410,910
500 Michigan Hospital Finance Authority, Mercy Health 1996 Ser R (AMBAC) ...... 5.375 08/15/16 471,795
-------- -----------
1,000 882,705
-------- -----------
Industrial Development/Pollution Control Revenue (3.5%)
500 Monroe County, Detroit Edison Co Collateralized Ser 1-1992 (AMT) (MBIA) ... 6.875 09/01/22 533,245
-------- -----------
Mortgage Revenue -- Multi-Family (11.3%)
Michigan Housing Development Authority,
465 Rental 1992 Ser A ....................................................... 6.60 04/01/12 487,571
795 1992 Ser A (FSA) ........................................................ 6.50 04/01/23 831,737
400 Ser 1990 A (AMT) ........................................................ 7.70 04/01/23 417,580
-------- -----------
1,660 1,736,888
-------- -----------
Public Facilities Revenue (6.1%)
500 Michigan Building Authority, Refg Ser I ................................... 6.25 10/01/20 508,965
500 Michigan House of Representatives, Capital Outlook LLC COPs (AMBAC) ....... 5.00 08/15/20 439,505
-------- -----------
1,000 948,470
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (8.5%)
Wayne County, Detroit Metropolitan Wayne County Airport Sub Lien
$ 250 Ser 1991 B (AMT) (MBIA) ........................................... 6.75% 12/01/21 $ 263,525
500 Ser 1998 B (MBIA) ................................................. 4.875 12/01/23 421,665
800 Puerto Rico Highway & Transportation Authority, Ser 1998 A .......... 4.75 07/01/38 633,496
-------- -----------
1,550 1,318,686
-------- -----------
Water & Sewer Revenue (5.4%)
400 Detroit, Water Supply Refg Ser 1992 (FGIC) .......................... 6.375 07/01/22 421,080
500 Grand Rapids, Water Ser 1998 A (FGIC) ............................... 4.75 01/01/28 409,495
-------- -----------
900 830,575
-------- -----------
Refunded (18.1%)
Detroit,
1,000 Sewer Refg Ser 1993 A (FGIC) ...................................... 5.70 07/01/03+ 1,045,050
1,000 Water Supply Refg Ser 1992 (FGIC) ................................. 6.375 07/01/02+ 1,059,460
655 Holly Area School District, 1995 Bldg & Site (FGIC) ................. 5.375 05/01/05+ 680,361
-------- -----------
2,655 2,784,871
-------- -----------
14,310 TOTAL MICHIGAN TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $13,973,064)............................................................... 13,806,029
-----------
SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.1%)
500 Delta County Economic Development Corporation, Mead-Escanaba
Paper Co Ser 1985 C (Demand 12/01/99) ............................. 3.80* 12/01/23 500,000
600 Royal Oak Hospital Finance Authority, William Beaumont Hospital
-------- Ser 1996 J (Demand 12/01/99) ...................................... 3.75* 01/01/03 600,000
-----------
1,100 TOTAL SHORT-TERM MICHIGAN TAX-EXEMPT MUNICIPAL OBLIGATIONS
(Identified Cost $1,100,000) ............................................................... 1,100,000
-------- -----------
$ 15,410 TOTAL INVESTMENTS (Identified Cost $15,073,064) (a) .......................... 96.6% 14,906,029
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............................... 3.4 520,169
------- -----------
NET ASSETS ................................................................... 100.0% $15,426,198
======== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
MICHIGAN SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
- ---------------
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
$340,807 and the aggregate gross unrealized depreciation is
$507,842, resulting in net unrealized depreciation of $167,035.
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
23
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA TAX-EXEMPT MUNICIPAL BONDS (91.8%)
General Obligation (15.3%)
$ 300 Minneapolis, Various Purpose Refg Ser 1998 D .............................. 5.00 % 12/01/17 $ 275,601
300 Minnesota, Various Purpose Refg Ser 1998 .................................. 5.00 06/01/16 278,943
300 Park Rapids Independent School District #309, School Building Ser 1999
(MBIA) .................................................................. 4.75 02/01/21 256,638
300 Waconia Independent District #110, Ser 1999 A ............................. 4.875 02/01/22 259,851
------ ----------
1,200 1,071,033
------ ----------
Educational Facilities Revenue (17.3%)
200 Minnesota Higher Education Facilities Authority, Northfield St Olaf
College 1992 ............................................................ 6.40 10/01/21 204,894
1,000 University of Minnesota, Ser 1993 A ....................................... 4.80 08/15/03 1,010,400
------ ----------
1,200 1,215,294
------ ----------
Electric Revenue (4.3%)
300 Western Minnesota Municipal Power Agency, Refg 1996 Ser A (AMBAC) ......... 5.50 01/01/12 303,495
------ ----------
Hospital Revenue (10.0%)
300 Robbinsdale, North Memorial Medical Center Ser 1993 A (AMBAC) ............. 5.45 05/15/13 298,635
Rochester,
200 Mayo Foundation/Mayo Medical Ser 1992 I ................................. 5.75 11/15/21 197,296
200 Mayo Foundation/Mayo Medical Ser 1992 F ................................. 6.25 11/15/21 208,272
------ ----------
700 704,203
------ ----------
Industrial Development/Pollution Control Revenue (10.0%)
200 Anoka County, United Power Assoc NRU-CFC-Gtd Ser 1987 A (AMT) ............. 6.95 12/01/08 206,404
300 Bass Brook, Minnesota Power & Light Co Refg Ser 1992 ...................... 6.00 07/01/22 286,266
Minneapolis Community Development Agency,
100 Ltd Tax Supported Common Bond Fund Ser 1991-3 ........................... 8.25 12/01/11 106,315
100 Ltd Tax Supported Common Bond Fund Ser 1991-1 (AMT) ..................... 8.00 12/01/16 105,868
------ ----------
700 704,853
------ ----------
Mortgage Revenue - Multi-Family (3.0%)
200 Minnesota Housing Finance Agency, Ser 1992 A .............................. 6.95 08/01/17 208,386
------ ----------
Mortgage Revenue - Single Family (10.3%)
120 Minneapolis-Saint Paul Housing Finance Board, GNMA-Backed Phase IX
Ser 1991 (AMT) .......................................................... 7.25 08/01/21 123,313
Minnesota Housing Finance Agency,
405 Ser 1992 C-1 (AMT) ...................................................... 6.75 07/01/23 412,974
185 Ser 1992 H (AMT) ........................................................ 6.50 01/01/26 186,656
------ ----------
710 722,943
------ ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- MINNESOTA
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nursing & Health Related Facilities Revenue (7.2%)
$ 500 Minneapolis & Saint Paul Housing & Redevelopment Authority, Group
------- Health Plan Inc Ser 1992 .................................................... 6.75 % 12/01/13 $ 504,860
----------
Transportation Facilities Revenue (3.7%)
300 Minnesota Public Facilities Authority, Metropolitan Council Ser 1999 A ........ 4.75 03/01/20 258,240
------- ----------
Water & Sewer Revenue (5.0%)
400 Minnesota Public Facilities Authority, Water Pollution Control 1998 Ser A ..... 4.75 03/01/19 346,208
------- ----------
Refunded (5.7%)
400 Saint Paul Housing & Redevelopment Authority, Civic Center Ser 1993 (ETM) 5.45 11/01/13 401,960
------- ----------
6,610 TOTAL MINNESOTA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $6,535,314) ........................................................................ 6,441,475
----------
SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS (5.7%)
100 Beltrami County, Northwood Panelboard Co Ser 1991 (Demand 12/01/99) ........... 3.80* 12/01/21 100,000
300 Minneapolis & Saint Paul Housing & Redevelopment Authority, Children's
------- Health Care Ser 1995 B (FSA) (Demand 12/01/99) .............................. 3.75* 08/15/25 300,000
----------
400 TOTAL SHORT-TERM MINNESOTA TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $400,000) .......................................................................... 400,000
----------
$ 7,010 TOTAL INVESTMENTS (Identified Cost $6,935,314)(a) ...................................... 97.5% 6,841,475
=======
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......................................... 2.5 179,011
-------- ----------
NET ASSETS ............................................................................. 100.0% $7,020,486
======== ==========
</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
$106,029 and the aggregate gross unrealized depreciation is
$199,868, resulting in net unrealized depreciation of $93,839.
Bond Insurance:
- ---------------
AMBAC AMBAC Assurance Corporation.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS (89.7%)
General Obligation (4.7%)
New Jersey,
$ 1,000 Refg Ser F ............................................................ 5.25 % 08/01/14 $ 976,940
1,000 Ser 1998 .............................................................. 4.50 03/01/18 843,540
-------- -----------
2,000 1,820,480
-------- -----------
Educational Facilities Revenue (16.8%)
New Jersey Economic Development Authority,
1,000 Educational Testing Service Ser 1998 A (MBIA) ......................... 4.75 05/15/25 848,250
1,000 The Lawrenceville School Ser A 1996 ................................... 5.75 07/01/16 1,001,960
500 The Seeing Eye Inc 1991 ............................................... 7.30 04/01/11 515,620
New Jersey Educational Facilities Authority,
1,000 Drew University 1998 Ser C (MBIA) ..................................... 5.00 07/01/17 917,650
1,000 Princeton University Ser 1999 A ....................................... 4.75 07/01/25 844,420
500 Rutgers, The State University Refg Ser R ................................ 6.50 05/01/13 528,795
2,000 University of Medicine & Dentistry, 1997 Ser A (MBIA) ................... 5.00 09/01/17 1,828,080
-------- -----------
7,000 6,484,775
-------- -----------
Electric Revenue (5.0%)
2,000 Puerto Rico Electric Power Authority, Power Ser O ....................... 5.00 07/01/12 1,916,940
-------- -----------
Hospital Revenue (6.7%)
New Jersey Health Care Facilities Financing Authority,
1,000 AHS Hospital Corp Ser 1997 A (AMBAC) .................................. 6.00 07/01/13 1,056,190
1,000 Atlantic City Medical Center Ser C .................................... 6.80 07/01/11 1,057,700
465 Robert Wood Johnson University Hospital Ser B (MBIA) .................. 6.625 07/01/16 486,153
-------- -----------
2,465 2,600,043
-------- -----------
Industrial Development/Pollution Control Revenue (6.5%)
500 Middlesex County Pollution Control Financing Authority, Amerada Hess Corp
Refg Ser 1992 ......................................................... 6.875 12/01/22 523,830
1,000 New Jersey Economic Development Authority, Elizabethtown Water Co
1995 Ser (AMT) (MBIA) ................................................. 5.60 12/01/25 957,800
1,000 Salem County Pollution Control Financing Authority, E I du Pont de
Nemours & Co 1992 Ser A (AMT) ......................................... 6.125 07/15/22 1,004,500
-------- -----------
2,500 2,486,130
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mortgage Revenue -- Multi-Family (9.3%)
New Jersey Housing & Mortgage Finance Agency,
$ 2,000 1995 Ser A (AMBAC) ......................................................... 6.00 % 11/01/14 $ 2,022,520
1,000 Presidential Plaza at Newport -- FHA Insured Mtges Refg 1991 Ser 1 ......... 7.00 05/01/30 1,050,730
500 Rental 1991 Ser A (AMT) .................................................... 7.25 11/01/22 516,850
-------- -----------
3,500 3,590,100
-------- -----------
Nursing & Health Related Facilities Revenue (2.4%)
895 New Jersey Health Care Facilities Financing Authority, Spectrum For Living
-------- -- FHA Insured Mortgage Refg Ser B ......................................... 6.50 02/01/22 919,478
-----------
Public Facilities Revenue (2.3%)
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------- (AMBAC) .................................................................... 5.00 07/01/28 876,720
-----------
Recreational Facilities Revenue (5.8%)
New Jersey Sports & Exposition Authority,
1,500 State Contract 1993 Ser A .................................................. 5.50 09/01/23 1,431,075
1,000 State Contract 1998 Ser A (MBIA) ........................................... 4.50 03/01/24 821,660
-------- -----------
2,500 2,252,735
-------- -----------
Resource Recovery Revenue (2.3%)
900 Warren County Pollution Control Financing Authority, Warren Energy
-------- Resource Co Ltd Partnership Ser 1984 (MBIA) ................................ 6.60 12/01/07 893,286
-----------
Transportation Facilities Revenue (15.2%)
1,000 Delaware River Port Authority, Ser 1995 (FGIC) ............................... 5.50 01/01/26 948,290
1,500 New Jersey Highway Authority, Sr Parkway Refg 1992 Ser ....................... 6.25 01/01/14 1,560,045
1,000 New Jersey Transportation Trust Authority, 1998 Ser A (FSA) .................. 4.50 06/15/19 829,730
1,000 New Jersey Turnpike Authority, Ser 1991 C .................................... 5.75 01/01/11 1,002,750
1,500 Port Authority of New York & New Jersey, Cons 99th Ser (AMT) (FGIC) .......... 5.75 05/01/15 1,506,210
-------- -----------
6,000 5,847,025
-------- -----------
Water & Sewer Revenue (12.7%)
1,000 Atlantic City Municipal Utilities Authority, Refg Ser 1993 ................... 5.75 05/01/17 995,590
1,000 Bergen County Utilities Authority, Water 1998 Ser A (FGIC) ................... 4.75 12/15/15 894,180
1,000 Camden County Municipal Utilities Authority, Sewer Refg Ser 1997 (FGIC)....... 5.25 07/15/17 950,300
1,000 Northwest Bergen County Utilities Authority, Refg 1992 Ser (MBIA) ............ 6.00 07/15/13 1,039,010
1,000 Passaic Valley Sewerage Commissioners, Ser 1992 D (AMBAC) .................... 5.75 12/01/13 1,016,040
-------- -----------
5,000 4,895,120
-------- -----------
35,760 TOTAL NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $34,780,691) ...................................................................... 34,582,832
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS (8.8%)
New Jersey Economic Development Authority,
$ 1,500 Natural Gas Co Ser 1995 A (AMT) (AMBAC) (Demand 12/01/99) ............. 3.65*% 08/01/30 $ 1,500,000
1,700 United Water Inc Ser 1996 B (AMBAC) (Demand 12/01/99) ................. 3.85* 11/01/25 1,700,000
200 Union County Industrial Pollution Control Financing Authority, Exxon Corp
-------- Ser 1994 (Demand 12/01/99) ............................................ 3.15* 07/01/33 200,000
-----------
3,400 TOTAL SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $3,400,000) .................................................................... 3,400,000
-----------
$ 39,160 TOTAL INVESTMENTS (Identified Cost $38,180,691) (a) ................................ 98.5% 37,982,832
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................................... 1.5 583,550
-------- -----------
NET ASSETS ......................................................................... 100.0% $38,566,382
======== ===========
</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
$908,720 and the aggregate gross unrealized depreciation is
$1,106,579, resulting in net unrealized depreciation of
$197,859.
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 -- NEW YORK SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK TAX-EXEMPT MUNICIPAL BONDS (88.2%)
General Obligation (12.6%)
$ 500 New York City, 1995 Ser D (MBIA) .................................... 6.20 % 02/01/07 $ 536,110
500 New York State, Refg Ser 1995 B ..................................... 5.70 08/15/13 506,855
300 Puerto Rico, Public Improvement Refg Ser 1992 A ..................... 6.00 07/01/14 304,656
-------- -----------
1,300 1,347,621
-------- -----------
Educational Facilities Revenue (20.3%)
500 Hempstead Industrial Development Agency, Hofstra University Ser 1996
(MBIA) ............................................................ 5.80 07/01/15 505,695
New York State Dormitory Authority,
300 Cooper Union Ser 1996 (AMBAC) ..................................... 5.375 07/01/16 287,442
400 Manhattan College Ser 1992 (AGRC) ................................. 6.50 07/01/19 410,948
500 State University Ser 1993 A ....................................... 5.25 05/15/15 474,610
500 University of Rochester Ser 1993 A ................................ 5.625 07/01/12 500,090
-------- -----------
2,200 2,178,785
-------- -----------
Electric Revenue (6.3%)
300 Long Island Power Authority, Ser 1998 A (FSA) ....................... 5.125 12/01/22 267,138
400 Puerto Rico Electric Power Authority, Power Ser X ................... 6.00 07/01/15 407,036
-------- -----------
700 674,174
-------- -----------
Industrial Development/Pollution Control Revenue (13.9%)
400 New York City Industrial Development Agency, Japan Airlines Co 1991
(AMT) (FSA) ....................................................... 6.00 11/01/15 416,096
1,000 New York State Energy Research & Development Authority, Brooklyn
-------- Union Gas Co 1991 Ser A & B (AMT) ................................. 6.952 07/01/26 1,074,180
-----------
1,400 1,490,276
-------- -----------
Mortgage Revenue - Single Family (4.9%)
500 New York State Mortgage Agency, Homeowner Ser 27 .................... 6.90 04/01/15 529,225
-------- -----------
Nursing & Health Related Facilities Revenue (3.7%)
500 New York City Industrial Development Agency, Lighthouse International
-------- Ser 1998 (MBIA) ................................................... 4.50 07/01/23 399,555
-----------
Public Facilities Revenue (9.1%)
500 New York City Cultural Resources Trust, The New York Botanical Garden
Ser 1996 (MBIA) ................................................... 5.75 07/01/16 501,190
500 New York State Urban Development Corporation, Correctional
1998 Ser B (AMBAC) ................................................ 5.25 01/01/16 472,460
-------- -----------
1,000 973,650
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW YORK SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Resource Recovery Revenue (4.9%)
$ 500 Oneida-Herkimer Solid Waste Management Authority, Ser 1992 ................... 6.65 % 04/01/05 $ 528,020
------- -----------
Transportation Facilities Revenue (8.7%)
550 Buffalo & Fort Erie Public Bridge Authority, Toll Bridge Ser 1995 (MBIA) ..... 5.75 01/01/25 534,331
500 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................... 4.75 07/01/38 395,935
------- -----------
1,050 930,266
------- -----------
Water & Sewer Revenue (3.8%)
500 New York City Municipal Water Finance Authority, 1999 Ser A (FGIC) ........... 4.75 06/15/31 405,545
------- -----------
9,650
-------
TOTAL NEW YORK TAX-EXEMPT MUNICIPAL BONDS
(Identified Cost $9,442,285).................................................. 9,457,117
SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS (9.3%) -----------
200 New York State Energy Research & Development Authority, New York
State Electric & Gas Corp Ser 1994 C (Demand 12/01/99) ..................... 3.60* 06/01/29 200,000
500 Syracuse Industrial Development Agency, Syracuse University
Eggers Hall Ser 1993 (Demand 12/01/99) ..................................... 3.75* 03/01/23 500,000
300 Port Authority of New York & New Jersey, Special Obligation Ser 2
(Demand 12/01/99) .......................................................... 3.75* 05/01/19 300,000
------- -----------
1,000 TOTAL SHORT-TERM NEW YORK TAX-EXEMPT MUNICIPAL OBLIGATIONS
(Identified Cost $1,000,000)................................................ 1,000,000
------- -----------
$10,650 TOTAL INVESTMENTS (Identified Cost $10,442,285) (a) ........................................ 97.5% 10,457,117
======= CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............................................. 2.5 262,272
------ -----------
NET ASSETS ................................................................................. 100.0% $10,719,389
====== ===========
</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
$291,556 and the aggregate gross unrealized depreciation is
$276,724, resulting in net unrealized appreciation of $14,832.
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
30
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO TAX-EXEMPT MUNICIPAL BONDS (93.2%)
General Obligation (22.8%)
$ 300 Bedford School District, Ser 1993 .................................... 6.25 % 12/01/13 $ 313,452
500 Dayton, Ltd Tax Ser 1998 (FGIC) ...................................... 4.70 12/01/20 425,615
500 Delaware City School District, Constr & Impr (FGIC) .................. 5.75 12/01/20 495,190
500 Medina City School District, Ser 1999 (FGIC) ......................... 5.25 12/01/28 451,915
500 North Olmsted, Various Purpose Impr Ltd Tax Ser 1996 (AMBAC) ......... 6.20 12/01/11 536,410
500 Ohio, Infrastructure Improvement Ser 1998 B .......................... 4.75 02/01/18 437,400
500 Rocky River City School District, Impr Ser 1998 ...................... 5.375 12/01/17 481,310
500 Puerto Rico, Public Impr Ser 1998 (Secondary MBIA) ................... 4.875 07/01/23 434,580
--------- -----------
3,800 3,575,872
--------- -----------
Educational Facilities Revenue (12.9%)
500 Ohio Higher Educational Facility Commission, Case Western Reserve
University Ser 1992 ................................................ 6.00 10/01/22 504,535
500 Ohio State University, General Receipts Ser 1999 A (WI) .............. 5.80 12/01/29 488,880
500 University of Cincinnati, General Receipts Ser G ..................... 7.00 06/01/11 526,945
500 University of Toledo, Ser 1992 A (FGIC)** ............................ 5.90 06/01/20 501,115
--------- -----------
2,000 2,021,475
--------- -----------
Electric Revenue (4.9%)
500 Hamilton!, Refg 1992 Ser A (FGIC) .................................... 6.00 10/15/12 520,925
300 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ............. 4.50 07/01/19 250,674
--------- -----------
800 771,599
--------- -----------
Hospital Revenue (7.6%)
700 Akron Bath & Copley Joint Township Hospital District, Summa Health
Ser 1992 A ......................................................... 6.25 11/15/07 716,709
475 Hamilton County, Bethesda Hospital Inc Ser 1986 A .................... 7.00 01/01/09 476,050
--------- -----------
1,175 1,192,759
--------- -----------
Industrial Development/Pollution Control Revenue (5.9%)
400 Ashtabula County, Ashland Oil Inc Refg 1992 Ser A .................... 6.90 05/01/10 417,108
500 Ohio Water Development Authority, Dayton Power & Light Co
Collateralized Refg 1992 Ser A ..................................... 6.40 08/15/27 506,815
--------- -----------
900 923,923
--------- -----------
Mortgage Revenue -- Single Family (9.5%)
Ohio Housing Finance Agency,
500 GNMA-Backed 1991 Ser A-1 & 2 (AMT) ................................. 6.903 03/01/31 516,070
990 Residential 1996 Ser B-2 (AMT) ..................................... 6.10 09/01/28 968,883
--------- -----------
1,490 1,484,953
--------- -----------
Public Facilities Revenue (3.0%)
500 Ohio Building Authority, Adult Correctional 1999 Ser A ............... 5.25 10/01/18 467,065
--------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- OHIO SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, 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 $ 401,585
300 Puerto Rico Highway & Transportation Authority, Ser 1998 A ............ 4.75 07/01/38 237,561
--------- -----------
800 639,146
--------- -----------
Water & Sewer Revenue (15.7%)
800 Montgomery County, Water Ser 1992 (FGIC) .............................. 6.25 11/15/17 829,808
800 Northeast Ohio Regional Sewer District, Wastewater Impr Refg
Ser 1995 (AMBAC) ..................................................... 5.60 11/15/13 810,216
800 Ohio Water Development Authority, Water Pollution Ser 1995 (MBIA) ..... 5.60 06/01/10 822,672
--------- -----------
2,400 2,462,696
--------- -----------
Refunded (6.8%)
1,000 Clermont County, Mercy Health Ser 1991 (AMBAC) ........................ 6.733 09/25/01+ 1,057,150
--------- -----------
14,865 TOTAL OHIO TAX-EXEMPT MUNICIPAL BONDS
---------
(Identified Cost $14,681,956) .............................................................. 14,596,638
-----------
SHORT-TERM OHIO TAX-EXEMPT MUNICIPAL OBLIGATIONS (6.4%)
600 Cuyahoga County, University Hospital of Cleveland Ser 1985
(Demand 12/01/99) .................................................... 3.60* 01/01/16 600,000
400 Ohio Water Development Authority, Mead Co Ser 1986 B
--------- (Demand 12/01/99) .................................................... 3.60* 11/01/15 400,000
-----------
1,000 TOTAL SHORT-TERM OHIO TAX-EXEMPT MUNICIPAL OBLIGATIONS
--------- (Identified Cost $1,000,000) ............................................................... 1,000,000
-----------
$ 15,865 TOTAL INVESTMENTS (Identified Cost $15,681,956) (a) .......................... 99.6% 15,596,638
=========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............................... 0.4 62,702
-------- -----------
NET ASSETS ................................................................... 100.0% $15,659,340
======== ===========
</TABLE>
- ---------------
AMT Alternative Minimum Tax.
+ Prerefunded to call date shown.
WI Security purchased on a "when-issued" basis.
* Current coupon of variable rate demand obligation.
** This security is segregated in connection with the purchase of a
"when-issued" security.
(a) The aggregate cost of federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$319,941 and the aggregate gross unrealized depreciation is
$405,259, resulting in net unrealized depreciation of $85,318.
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
32
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS (90.1%)
General Obligation (7.2%)
$ 2,000 Berks County, Second Ser 1992 (FGIC) ...................................... 5.75 % 11/15/12 $ 2,019,380
1,000 Delaware County, Ser 1999 ................................................. 5.125 10/01/19 906,870
600 Puerto Rico, Public Improvement Refg Ser 1992 A ........................... 6.00 07/01/14 609,312
-------- -----------
3,600 3,535,562
-------- -----------
Educational Facilities Revenue (12.3%)
2,000 Delaware County Authority, Villanova University Ser 1995 (AMBAC) .......... 5.80 08/01/25 1,952,880
Pennsylvania Higher Educational Facilities Authority,
1,000 Allegheny College Refg Ser 1998 A (MBIA) ................................ 5.00 11/01/22 875,150
1,000 University of Pennsylvania Ser 1998 ..................................... 4.625 07/15/30 787,330
1,000 Pennsylvania State University, Second Refg Ser 1992 ....................... 5.50 08/15/16 970,160
790 Swarthmore Borough Authority, Swarthmore College Ser 1992 ................. 6.00 09/15/20 793,500
655 University of Pittsburgh, Cap 1992 Ser A (MBIA) ........................... 6.125 06/01/21 660,240
-------- -----------
6,445 6,039,260
-------- -----------
Electric Revenue (3.5%)
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ...................................................... 4.50 07/01/19 835,580
1,000 Ser GG (FSA) ............................................................ 4.75 07/01/21 861,690
-------- -----------
2,000 1,697,270
-------- -----------
Hospital Revenue (15.4%)
Allegheny County Hospital Development Authority,
1,000 Catholic Health East Health Ser 1998 A (AMBAC) .......................... 4.875 11/15/26 824,080
1,000 Presbyterian University Health Inc Ser 1992 B (MBIA) .................... 6.00 11/01/12 1,042,200
2,000 Delaware County Authority, Catholic Health East Health Ser 1998 A
(AMBAC) ................................................................. 4.875 11/15/26 1,648,160
Philadelphia Hospitals & Higher Education Facilities Authority,
1,750 Chestnut Hill Hospital Ser of 1992 ...................................... 6.375 11/15/11 1,751,033
1,000 Children's Hospital of Philadelphia Ser A of 1993 ....................... 5.375 02/15/14 933,010
1,250 Sayre Health Care Facilities Authority, Ser 1985 (AMBAC) .................. 7.15 12/01/10 1,328,525
-------- -----------
8,000 7,527,008
-------- -----------
Mortgage Revenue -- Multi-Family (2.0%)
1,000 Pennsylvania Housing Finance Agency, Ser 1992-35 D (AMT) .................. 6.20 04/01/25 999,890
-------- -----------
Mortgage Revenue -- Single Family (5.6%)
2,000 Pennsylvania Housing Finance Agency, Ser 1991-31 C (AMT) .................. 7.00 10/01/23 2,077,280
635 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
Ser C ................................................................... 6.85 10/15/23 663,346
-------- -----------
2,635 2,740,626
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Recreational Facilities Revenue (3.4%)
$ 2,000 Philadelphia Industrial Development Authority, The Franklin Institute
-------- Ser 1998 ................................................................ 5.20 % 06/15/26 $ 1,688,680
-----------
Resource Recovery Revenue (2.1%)
1,000 Montgomery County Industrial Development Authority, Ser 1989 .............. 7.50 01/01/12 1,042,180
-------- -----------
Student Loan Revenue (4.2%)
Pennsylvania Higher Education Assistance Agency,
1,000 1988 Ser D (AMT) (AMBAC) ................................................ 6.05 01/01/19 1,000,870
1,000 1991 Ser B (AMT) (AMBAC) ................................................ 6.854 09/01/26 1,076,100
-------- -----------
2,000 2,076,970
-------- -----------
Transportation Facilities Revenue (23.8%)
1,000 Guam, Highway 1992 Ser A (FSA) ............................................ 6.30 05/01/12 1,049,550
Allegheny County, Greater Pittsburgh Int'l Airport
1,000 Ser 1997 B (MBIA) ....................................................... 5.00 01/01/19 888,250
500 Ser 1992 (AMT) (FSA) .................................................... 6.625 01/01/22 521,020
2,000 Delaware River Port Authority, Ser 1995 (FGIC) ............................ 5.50 01/01/26 1,896,580
Pennsylvania Turnpike Commission,
2,000 Ser O 1992 (FGIC) ....................................................... 6.00 12/01/12 2,076,820
2,000 Ser A 1998 (AMBAC) ...................................................... 4.75 12/01/27 1,638,500
1,000 Philadelphia Industrial Development Authority, Philadelphia Airport
Ser 1998 A (AMT) (FGIC) ................................................. 5.00 07/01/23 855,550
1,000 Pittsburgh Public Parking Authority, Ser 1992 A (FGIC) .................... 5.875 12/01/12 1,023,220
1,000 Southeastern Pennsylvania Transportation Authority, Ser A 1999 (FGIC) ..... 5.25 03/01/18 931,020
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 791,870
-------- -----------
12,500 11,672,380
-------- -----------
Water & Sewer Revenue (6.9%)
2,000 Philadelphia, Water & Wastewater Ser 1995 (MBIA) .......................... 6.25 08/01/11 2,174,520
2,000 Pittsburgh Water & Sewer Authority, 1998 Ser B (FGIC) ..................... 0.00 09/01/28 337,320
1,000 West Mifflin Sanitary Sewer Municipal Authority, Ser 1998 (MBIA) .......... 5.00 08/01/23 872,100
-------- -----------
5,000 3,383,940
-------- -----------
Other Revenue (3.3%)
1,500 Pennsylvania Finance Authority, Cap Impr Refg Ser 1993 .................... 6.60 11/01/09 1,600,800
-------- -----------
Refunded (0.4%)
200 Lehigh County Industrial Development Authority, Strawbridge & Clothier
-------- Refg Ser of 1991 (ETM) .................................................. 7.20 12/15/01 205,972
-----------
47,880 TOTAL PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $45,499,777).................................................................. 44,210,538
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST --
PENNSYLVANIA SERIES
PORTFOLIO OF INVESTMENTS November 30, 1999, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (8.4%)
$ 2,000 Lehigh County General Purpose Authority, Lehigh Valley Hospital 1997 A
(AMBAC) (Demand 12/01/99) ............................................... 3.65*% 07/01/28 $ 2,000,000
800 Philadelphia Hospital and Higher Education Facilities Authority, Children's
Hospital of Philadelphia Ser 1992 (Demand 12/01/99) ..................... 3.75* 03/01/27 800,000
1,300 Philadelphia Industrial Development Authority, The Fox Chase Center
-------- Ser 1997 (Demand 12/01/99) .............................................. 3.75* 07/01/25 1,300,000
-----------
4,100 TOTAL SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $4,100,000)....................................................................... 4,100,000
-----------
$ 51,980 TOTAL INVESTMENTS (Identified Cost $49,599,777) (a) .................................. 98.5% 48,310,538
========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ....................................... 1.5 748,576
-------- -----------
NET ASSETS ........................................................................... 100.0% $49,059,114
======== ===========
</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
$931,110 and the aggregate gross unrealized depreciation is
$2,220,349, resulting in net unrealized depreciation of
$1,289,239.
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
35
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value* ...................... $36,114,335 $94,212,723 $51,623,842 $11,794,132
Cash ...................................................... 40,663 93,484 1,574,593 29,189
Receivable for:
Investments sold ........................................ -- -- -- 10,275
Interest ................................................ 747,734 1,294,841 631,872 219,162
Shares of beneficial interest sold ...................... -- 97,230 54,639 509
Prepaid expenses and other assets ......................... 10,092 10,886 9,064 1,392
----------- ----------- ----------- -----------
TOTAL ASSETS ............................................ 36,912,824 95,709,164 53,894,010 12,054,659
----------- ----------- ----------- -----------
LIABILITIES:
Payable for:
Investments purchased ................................... -- -- -- --
Shares of beneficial interest repurchased ............... -- 77,742 271,549 4,646
Dividends to shareholders ............................... 19,711 52,395 28,609 6,258
Investment management fee ............................... 11,375 29,414 16,578 3,749
Plan of distribution fee ................................ 3,167 12,606 7,105 1,337
Accrued expenses .......................................... 11,377 21,700 15,197 10,105
----------- ----------- ----------- -----------
TOTAL LIABILITIES ....................................... 45,630 193,857 339,038 26,095
----------- ----------- ----------- -----------
NET ASSETS .............................................. $36,867,194 $95,515,307 $53,554,972 $12,028,564
=========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Paid-in-capital ........................................... $37,416,253 $96,639,672 $53,907,814 $12,025,193
Accumulated net realized loss ............................. (69,118) (292,805) (165,730) (130,711)
Net unrealized appreciation (depreciation) ................ (479,941) (831,560) (187,112) 134,082
----------- ----------- ----------- -----------
NET ASSETS .............................................. $36,867,194 $95,515,307 $53,554,972 $12,028,564
=========== =========== =========== ===========
*IDENTIFIED COST ........................................ $36,594,276 $95,044,283 $51,810,954 $11,660,050
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING ............... 3,722,888 9,378,747 5,301,588 1,151,035
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE
(unlimited authorized shares of $.01 par value)........... $9.90 $10.18 $10.10 $10.45
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus 4.17% of net asset value)** ........ $10.31 $10.60 $10.52 $10.89
</TABLE>
- ---------------
** On sales of $25,000 or more, the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$14,906,029 $6,841,475 $37,982,832 $10,457,117 $15,596,638 $48,310,538
372,146 61,193 113,449 103,661 326,665 19,130
-- -- -- -- -- 90,000
157,170 129,177 646,433 172,693 233,457 740,485
10,371 -- 48,625 -- 14,478 1,548
3,940 1,994 8,378 3,791 5,158 8,863
------------- ---------- ----------- ----------- ----------- ------------
15,449,656 7,033,839 38,799,717 10,737,262 16,176,396 49,170,564
------------- ---------- ----------- ----------- ----------- ------------
-- -- -- -- 493,005 --
-- -- 182,948 -- -- 46,328
8,062 3,410 21,164 5,736 8,440 27,023
4,733 2,169 11,908 3,306 4,871 15,194
2,028 929 5,103 1,417 2,088 6,197
8,635 6,845 12,212 7,414 8,652 16,708
------------- ---------- ----------- ----------- ----------- ------------
23,458 13,353 233,335 17,873 517,056 111,450
------------- ---------- ----------- ----------- ----------- ------------
$15,426,198 $7,020,486 $38,566,382 $10,719,389 $15,659,340 $49,059,114
============= ========== =========== =========== =========== ============
$15,624,705 $7,130,742 $38,833,385 $10,716,730 $15,786,140 $50,355,003
(31,472) (16,417) (69,144) (12,173) (41,482) (6,650)
(167,035) (93,839) (197,859) 14,832 (85,318) (1,289,239)
------------- ---------- ----------- ----------- ----------- ------------
$15,426,198 $7,020,486 $38,566,382 $10,719,389 $15,659,340 $49,059,114
============= ========== =========== =========== =========== ============
$15,073,064 $6,935,314 $38,180,691 $10,442,285 $15,681,956 $49,599,777
============= ========== =========== =========== =========== ============
1,537,836 700,163 3,772,932 1,047,028 1,524,259 4,813,564
============= ========== =========== =========== =========== ============
$10.03 $10.03 $10.22 $10.24 $10.27 $10.19
$10.45 $10.45 $10.65 $10.67 $10.70 $10.61
</TABLE>
37
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENTS OF OPERATIONS
For the year ended November 30, 1999
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ............................... $ 2,164,365 $ 5,524,666 $ 3,087,284 $ 777,513
------------ ------------ ------------ ------------
EXPENSES
Investment management fee ..................... 140,768 356,813 203,267 49,848
Plan of distribution fee ...................... 56,078 150,122 82,273 20,384
Transfer agent fees and expenses .............. 11,777 34,144 19,332 5,708
Professional fees ............................. 29,446 33,625 30,716 27,245
Shareholder reports and notices ............... 10,348 22,875 15,678 4,321
Trustees' fees and expenses ................... 1,895 5,050 2,661 533
Custodian fees ................................ 2,460 5,076 3,295 1,222
Registration fees ............................. 7,774 3,830 5,244 7,300
Other ......................................... 6,190 9,047 7,204 4,991
------------ ------------ ------------ ------------
TOTAL EXPENSES .............................. 266,736 620,582 369,670 121,552
Less: expense offset .......................... (2,456) (5,067) (3,289) (1,222)
------------ ------------ ------------ ------------
NET EXPENSES ................................ 264,280 615,515 366,381 120,330
------------ ------------ ------------ ------------
NET INVESTMENT INCOME ....................... 1,900,085 4,909,151 2,720,903 657,183
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED LOSS :
Net realized loss ............................. (69,115) (292,800) (165,729) (130,711)
Net change in unrealized appreciation ......... (2,859,823) (7,760,961) (4,099,311) (872,696)
------------ ------------ ------------ ------------
NET LOSS .................................... (2,928,938) (8,053,761) (4,265,040) (1,003,407)
------------ ------------ ------------ ------------
NET DECREASE .................................. $(1,028,853) $(3,144,610) $(1,544,137) $ (346,224)
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 898,388 $ 426,128 $ 2,205,912 $ 623,723 $ 963,133 $ 2,870,676
------------ ---------- ------------ ---------- ------------ ------------
58,834 27,901 142,574 40,185 61,383 183,815
24,004 11,455 57,692 16,977 24,023 78,314
9,277 3,713 19,960 4,862 9,163 16,616
32,176 35,872 27,213 26,947 30,129 28,013
7,359 2,980 16,397 3,824 6,915 13,266
801 250 1,949 548 839 2,811
1,457 830 2,308 1,052 1,539 2,761
2,720 2,960 7,041 7,310 2,656 3,343
5,195 4,459 6,326 4,490 5,188 7,381
------------ ---------- ------------ ---------- ------------ ------------
141,823 90,420 281,460 106,195 141,835 336,320
(1,457) (830) (2,305) (1,052) (1,539) (2,756)
------------ ---------- ------------ ---------- ------------ ------------
140,366 89,590 279,155 105,143 140,296 333,564
------------ ---------- ------------ ---------- ------------ ------------
758,022 336,538 1,926,757 518,580 822,837 2,537,112
------------ ---------- ------------ ---------- ------------ ------------
(31,471) (16,416) (69,142) (12,174) (39,851) (6,646)
(1,120,780) (516,662) (2,840,301) (836,551) (1,175,397) (4,132,749)
------------ ---------- ------------ ---------- ------------ ------------
(1,152,251) (533,078) (2,909,443) (848,725) (1,215,248) (4,139,395)
------------ ---------- ------------ ---------- ------------ ------------
$ (394,229) $(196,540) $ (982,686) $(330,145) $ (392,411) $(1,602,283)
============ ========== ============ ========== ============ ============
</TABLE>
39
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA
--------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS :
OPERATIONS:
Net investment income ............................ $ 1,900,085 $ 1,958,982 $ 4,909,151 $ 5,098,849
Net realized gain (loss) ......................... (69,115) 725,798 (292,800) 2,241,204
Net change in unrealized appreciation ............ (2,859,823) (57,712) (7,760,961) 248,404
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) ........................ (1,028,853) 2,627,068 (3,144,610) 7,588,457
------------ ------------ ------------- -------------
DIVIDENDS AND DISTRIBUTIONS FROM :
Net investment income ............................ (1,900,085) (1,970,313) (4,909,151) (5,127,716)
Net realized gain ................................ (609,152) -- (1,789,764) --
------------ ------------ ------------- -------------
TOTAL DIVIDENDS AND DISTRIBUTIONS .............. (2,509,237) (1,970,313) (6,698,915) (5,127,716)
------------ ------------ ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 3,943,050 3,583,708 9,677,182 7,971,183
Reinvestment of dividends and distributions ...... 1,325,710 956,419 3,315,487 2,300,541
Cost of shares repurchased ....................... (6,518,686) (5,432,230) (12,809,278) (11,766,093)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) ........................ (1,249,926) (892,103) 183,391 (1,494,369)
------------ ------------ ------------- -------------
TOTAL INCREASE (DECREASE) ...................... (4,788,016) (235,348) (9,660,134) 966,372
NET ASSETS:
Beginning of period .............................. 41,655,210 41,890,558 105,175,441 104,209,069
------------ ------------ ------------- -------------
END OF PERIOD .................................. $36,867,194 $41,655,210 $ 95,515,307 $105,175,441
============ ============ ============= =============
SHARES ISSUED AND REPURCHASED :
Sold ............................................. 375,871 333,041 896,986 718,169
Reinvestment of dividends and distributions ...... 127,464 89,180 308,057 207,368
Repurchased ...................................... (632,656) (506,438) (1,202,334) (1,061,263)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) ........................ (129,321) (84,217) 2,709 (135,726)
============ ============ ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
<TABLE>
<CAPTION>
FLORIDA MASSACHUSETTS MICHIGAN
- --------------------------------------- --------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,720,903 $ 2,983,488 $ 657,183 $ 670,436 $ 758,022 $ 876,689
(165,729) 2,077,788 (130,711) 171,067 (31,471) 708,264
(4,099,311) (437,571) (872,696) 170,653 (1,120,780) (248,253)
------------- ------------- ------------ ------------ ------------ ------------
(1,544,137) 4,623,705 (346,224) 1,012,156 (394,229) 1,336,700
------------- ------------- ------------ ------------ ------------ ------------
(2,720,903) (3,001,258) (657,183) (674,613) (758,022) (881,921)
(1,997,025) -- (171,067) (26,809) (694,270) --
------------- ------------- ------------ ------------ ------------ ------------
(4,717,928) (3,001,258) (828,250) (701,422) (1,452,292) (881,921)
------------- ------------- ------------ ------------ ------------ ------------
6,706,394 6,336,196 1,160,063 2,177,938 1,578,867 1,976,447
1,979,787 1,065,444 502,570 398,624 939,478 488,182
(10,131,177) (12,850,195) (3,695,685) (2,212,481) (3,004,836) (4,672,568)
------------- ------------- ------------ ------------ ------------ ------------
(1,444,996) (5,448,555) (2,033,052) 364,081 (486,491) (2,207,939)
------------- ------------- ------------ ------------ ------------ ------------
(7,707,061) (3,826,108) (3,207,526) 674,815 (2,333,012) (1,753,160)
61,262,033 65,088,141 15,236,090 14,561,275 17,759,210 19,512,370
------------- ------------- ------------ ------------ ------------ ------------
$ 53,554,972 $ 61,262,033 $12,028,564 $15,236,090 $15,426,198 $17,759,210
============= ============= ============ ============ ============ ============
623,037 569,452 107,144 193,348 148,075 178,504
185,150 95,684 45,969 35,479 88,569 44,120
(953,641) (1,152,957) (346,276) (196,446) (286,022) (419,448)
------------- ------------- ------------ ------------ ------------ ------------
(145,454) (487,821) (193,163) 32,381 (49,378) (196,824)
============= ============= ============ ============ ============ ============
</TABLE>
41
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS, continued
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY
--------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ............................ $ 336,538 $ 385,482 $ 1,926,757 $ 1,969,062
Net realized gain (loss) ......................... (16,416) 152,552 (69,142) 614,679
Net change in unrealized appreciation ............ (516,662) (55,068) (2,840,301) 394,703
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (196,540) 482,966 (982,686) 2,978,444
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................ (336,538) (388,129) (1,926,757) (1,980,284)
Net realized gain ................................ (71,136) -- (609,503) --
------------ ------------ ------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS .............. (407,674) (388,129) (2,536,260) (1,980,284)
------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .......................... 613,733 450,188 3,899,668 4,281,513
Reinvestment of dividends and distributions ...... 197,150 205,051 1,486,480 1,110,422
Cost of shares repurchased ....................... (1,602,851) (1,075,759) (5,103,832) (6,107,000)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (791,968) (420,520) 282,316 (715,065)
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) ...................... (1,396,182) (325,683) (3,236,630) 283,095
NET ASSETS:
Beginning of period .............................. 8,416,668 8,742,351 41,803,012 41,519,917
------------ ------------ ------------ ------------
END OF PERIOD .................................. $ 7,020,486 $ 8,416,668 $38,566,382 $41,803,012
============ ============ ============ ============
SHARES ISSUED AND REPURCHASED:
Sold ............................................. 57,698 41,683 362,856 387,819
Reinvestment of dividends and distributions ...... 18,774 19,052 138,573 100,683
Repurchased ...................................... (154,345) (99,811) (478,651) (554,108)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) ........................ (77,873) (39,076) 22,778 (65,606)
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
<TABLE>
<CAPTION>
NEW YORK OHIO PENNSYLVANIA
- --------------------------------------- --------------------------------------- --------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998 NOVEMBER 30, 1999 NOVEMBER 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 518,580 $ 566,953 $ 822,837 $ 863,067 $ 2,537,112 $ 2,506,283
(12,174) 408,044 (39,851) 388,407 (6,646) 578,722
(836,551) (77,877) (1,175,397) (29,432) (4,132,749) 203,628
------------ ------------ ------------ ------------ ------------ ------------
(330,145) 897,120 (392,411) 1,222,042 (1,602,283) 3,288,633
------------ ------------ ------------ ------------ ------------ ------------
(518,580) (570,172) (822,837) (870,982) (2,537,112) (2,518,046)
(394,741) -- (219,842) -- (578,726) (8,207)
------------ ------------ ------------ ------------ ------------ ------------
(913,321) (570,172) (1,042,679) (870,982) (3,115,838) (2,526,253)
------------ ------------ ------------ ------------ ------------ ------------
637,143 656,120 2,664,054 2,170,150 3,894,419 12,831,070
549,160 301,450 628,836 479,951 2,031,604 1,539,410
(1,236,776) (1,857,636) (4,778,766) (2,897,075) (5,957,035) (5,380,740)
------------ ------------ ------------ ------------ ------------ ------------
(50,473) (900,066) (1,485,876) (246,974) (31,012) 8,989,740
------------ ------------ ------------ ------------ ------------ ------------
(1,293,939) (573,118) (2,920,966) 104,086 (4,749,133) 9,752,120
12,013,328 12,586,446 18,580,306 18,476,220 53,808,247 44,056,127
------------ ------------ ------------ ------------ ------------ ------------
$10,719,389 $12,013,328 $15,659,340 $18,580,306 $49,059,114 $53,808,247
============ ============ ============ ============ ============ ============
58,477 58,252 247,224 195,888 359,418 1,154,976
50,586 26,721 58,442 43,444 189,500 139,044
(115,169) (164,456) (447,444) (262,446) (560,476) (485,530)
------------ ------------ ------------ ------------ ------------ ------------
(6,106) (79,483) (141,778) (23,114) (11,558) 808,490
============ ============ ============ ============ ============ ============
</TABLE>
43
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999
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 INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
44
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999, 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.
45
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999, continued
3. PLAN OF DISTRIBUTION
Morgan Stanley Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager, is the distributor of the Fund's shares and, in
accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act, finances certain expenses in connection with the distribution of
shares of the Fund.
Under the Plan, the expenses of certain activities and services provided by
Dean Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, and others who engage in or support distribution of the Fund's
shares or who service shareholder accounts, including overhead and telephone
expenses incurred in connection with the distribution of the Fund's shares, are
reimbursed.
Reimbursements for these expenses will be made in monthly payments by the Fund
to the Distributor, which will in no event exceed an amount equal to a payment
at the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the year ended November 30, 1999, the distribution
fees were accrued at the following annual rates:
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------- ---------- ------- ------------- --------
Annual Rate ......... 0.14% 0.15% 0.14% 0.14% 0.14%
==== ==== ==== ==== ====
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
0.14% 0.14% 0.15% 0.14% 0.15%
==== ==== ==== ==== ====
For the year ended November 30, 1999, the Distributor has informed the Fund
that commissions from the sale of the Fund's shares of beneficial interest were
as follows:
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------- ---------- ------- ------------- --------
Commissions ......... $94,093 $226,522 $170,528 $31,101 $52,759
======= ======== ======== ======= =======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
$21,658 $ 98,116 $ 20,379 $53,226 $72,372
======= ======== ========= ======= =======
Such commissions are not an expense of the Fund; they are deducted from the
proceeds of the sale of the shares of beneficial interest.
46
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999, continued
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from the sales of portfolio securities,
excluding short-term investments, for the year ended November 30, 1999 were as
follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------- ---------- ------- ------------- --------
<S> <C> <C> <C> <C> <C>
Purchases ......... $4,796,836 $26,282,780 $ 7,257,980 $ -- $1,548,121
========== =========== =========== ============= ==========
Sales ............. $7,297,185 $30,187,123 $12,730,596 $ 2,245,135 $3,118,997
========== =========== =========== ============= ==========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
<S> <C> <C> <C> <C> <C>
Purchases ......... $1,079,153 $3,865,670 $ 400,000 $2,574,361 $2,982,709
========== ========== ========== ========== ==========
Sales ............. $1,716,705 $5,017,151 $1,173,408 $4,250,957 $4,861,725
========== ========== ========== ========== ==========
</TABLE>
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended November 30, 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 ......... $582 $1,437 $835 $198 $235
==== ====== ==== ==== ====
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
$107 $ 576 $157 $256 $710
==== ====== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN
------- ---------- ------- ------------- --------
<S> <C> <C> <C> <C> <C>
Accrued Pension Liability ......... $4,366 $10,788 $6,594 $1,518 $1,934
====== ======= ====== ====== ======
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
$ 973 $ 4,253 $1,305 $2,080 $4,848
====== ======= ====== ====== ======
</TABLE>
47
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999, continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At November 30, 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 ...... $ -- $646 $253 $242 $150
======= ==== ==== ==== ====
MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
--------- ---------- -------- ---- ------------
$24 $194 $ 85 $ 82 $468
=== ==== ==== ==== ====
</TABLE>
5. FEDERAL INCOME TAX STATUS
At November 30, 1999, the following Series had approximate net capital loss
carryovers which will be available through November 30, 2007 to offset future
capital gains to the extent provided by regulations:
<TABLE>
<S> <C>
Arizona ............... $ 69,000
California ............ 243,000
Florida ............... 166,000
Massachusetts ......... 131,000
Michigan .............. 31,000
Minnesota ............. 16,000
New Jersey ............ 69,000
New York .............. 12,000
Ohio .................. 14,000
Pennsylvania .......... 7,000
</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 California and Ohio Series incurred and will elect to defer
net capital losses during fiscal 1999 of approximately $50,000 and $28,000,
respectively.
6. SUBSEQUENT EVENT -- SERIES MERGERS
On January 26, 2000, the Trustees of the Fund and of Morgan Stanley Dean Witter
Tax-Exempt Securities Trust ("Tax-Exempt") approved four reorganization plans
(the "Plans") whereby the Massachusetts Series, the Michigan Series, the
Minnesota Series and the Ohio Series would each be merged into Tax-Exempt. Each
respective Plan is subject to the consent of the Massachusetts Series', the
Michigan Series', the Minnesota Series' and the Ohio Series' shareholders,
respectively. If the Plans are approved by shareholders (each Plan is
independent of the other and therefore, the effectiveness of each Plan is not
dependent upon the approval of the other Plans) the assets of the Massachusetts
Series, the Michigan
48
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS November 30, 1999, continued
Series, the Minnesota Series and the Ohio Series would be combined with the
assets of Tax-Exempt and shareholders of the Massachusetts Series, the Michigan
Series, the Minnesota Series and the Ohio Series would become Class D
shareholders of Tax-Exempt, receiving Class D shares of Tax-Exempt equal to the
value of their holdings in the respective Series.
On January 26, 2000, the Trustees of the Fund and of Morgan Stanley Dean Witter
California Tax-Free Income Fund ("California Tax-Free") approved a
reorganization plan (the "Plan") whereby the California Series would be merged
into California Tax-Free. The Plan is subject to the consent of the California
Series' shareholders. If the Plan is approved by shareholders, the assets of
the California Series would be combined with the assets of California Tax-Free
and shareholders of the California Series would become Class D shareholders of
California Tax-Free, receiving Class D shares of California Tax-Free equal to
the value of their holdings in the California Series.
On January 26, 2000, the Trustees of the Fund and of Morgan Stanley Dean Witter
New York Tax-Free Income Fund ("New York Tax-Free") approved a reorganization
plan (the "Plan") whereby the New York Series would be merged into New York
Tax-Free. The Plan is subject to the consent of the New York Series'
shareholders. If the Plan is approved by shareholders, the assets of the New
York Series would be combined with the assets of New York Tax-Free and
shareholders of the New York Series would become Class D shareholders of New
York Tax-Free, receiving Class D shares of New York Tax-Free equal to the value
of their holdings in the New York Series.
49
<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
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 0.49 (0.75) (0.26) (0.49) (0.16) (0.65)
CALIFORNIA SERIES
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 0.52 (0.85) (0.33) (0.52) (0.19) (0.71)
FLORIDA SERIES
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 0.50 (0.78) (0.28) (0.50) (0.37) (0.87)
MASSACHUSETTS SERIES
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 0.50 (0.75) (0.25) (0.50) (0.13) (0.63)
MICHIGAN SERIES
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 0.48 (0.73) (0.25) (0.48) (0.43) (0.91)
</TABLE>
- ---------------
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET
ASSETS
(AFTER EXPENSES WERE RATIOS TO AVERAGE NET ASSETS
ASSUMED) (BEFORE EXPENSES WERE ASSUMED)
NET ASSET NET ASSETS --------------------------- ------------------------------
VALUE END OF NET NET PORTFOLIO
END OF TOTAL PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.65 19.21% $ 50,290 0.65%(1) 5.33% 0.65%(1) 5.33% 6%
10.59 4.63 46,248 0.65 (1) 5.12 0.65 (1) 5.12 9
10.64 5.64 41,891 0.66 (1) 5.04 0.66 (1) 5.04 2
10.81 6.56 41,655 0.65 (1) 4.77 0.65 (1) 4.77 30
9.90 (2.53) 36,867 0.66 (1) 4.72 0.66 (1) 4.72 13
10.67 20.15 117,769 0.60 (1) 5.50 0.60 (1) 5.50 5
10.81 6.76 113,859 0.59 5.28 0.59 5.28 19
10.96 6.55 104,209 0.59 5.08 0.59 5.08 17
11.22 7.58 105,175 0.59 (1) 4.87 0.59 (1) 4.87 24
10.18 (3.10) 95,515 0.61 (1) 4.82 0.61 (1) 4.82 27
10.88 19.54 74,058 0.63 (1) 5.34 0.63 (1) 5.34 8
10.86 5.03 70,542 0.62 (1) 5.13 0.62 (1) 5.13 25
10.97 6.10 65,088 0.62 5.02 0.62 5.02 7
11.25 7.58 61,262 0.62 (1) 4.69 0.62 (1) 4.69 26
10.10 (2.70) 53,555 0.64 (1) 4.69 0.64 (1) 4.69 13
10.97 20.58 16,954 0.50 (1) 5.39 0.79 (1) 5.11 7
10.92 5.07 16,021 0.50 (1) 5.23 0.82 (1) 4.91 11
11.10 6.68 14,561 0.79 (1) 4.85 0.81 (1) 4.83 10
11.33 7.03 15,236 0.83 (1) 4.55 0.83 (1) 4.55 31
10.45 (2.29) 12,029 0.85 (1) 4.61 0.85 (1) 4.61 --
10.81 20.69 21,673 0.50 (1) 5.49 0.77 (1) 5.22 22
10.78 5.09 20,863 0.50 (1) 5.27 0.76 (1) 5.01 5
10.94 6.52 19,512 0.72 (1) 4.95 0.74 (1) 4.93 3
11.19 7.23 17,759 0.78 (1) 4.63 0.78 (1) 4.63 40
10.03 (2.40) 15,426 0.84 (1) 4.51 0.84 (1) 4.51 10
</TABLE>
51
<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
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 0.44 (0.70) (0.26) (0.44) (0.09) (0.53)
NEW JERSEY SERIES
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 0.51 (0.77) (0.26) (0.51) (0.16) (0.67)
NEW YORK SERIES
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 0.49 (0.80) (0.31) (0.49) (0.37) (0.86)
OHIO SERIES
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 0.50 (0.75) (0.25) (0.50) (0.13) (0.63)
PENNSYLVANIA SERIES
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 0.52 (0.84) (0.32) (0.52) (0.12) (0.64)
</TABLE>
- ---------------
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET
ASSETS RATIOS TO AVERAGE NET ASSETS
(AFTER EXPENSES WERE (BEFORE EXPENSES WERE
ASSUMED) ASSUMED)
NET ASSET NET ASSETS --------------------------- ----------------------------
VALUE END OF NET NET PORTFOLIO
END OF TOTAL PERIOD INVESTMENT INVESTMENT TURNOVER
PERIOD RETURN + (000'S) EXPENSES INCOME EXPENSES INCOME RATE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.61 20.60% $11,230 0.50%(1) 5.35% 0.98%(1) 4.88% 3%
10.60 5.21 9,923 0.50 (1) 5.21 0.96 (1) 4.75 5
10.70 5.76 8,742 0.94 (1) 4.68 0.97 (1) 4.65 --
10.82 5.77 8,417 0.99 (1) 4.49 0.99 (1) 4.49 20
10.03 (2.46) 7,020 1.13 (1) 4.22 1.13 (1) 4.22 15
10.73 19.60 47,889 0.67 (1) 5.42 0.67 (1) 5.42 14
10.70 4.93 44,829 0.66 (1) 5.23 0.66 (1) 5.23 5
10.88 6.99 41,520 0.66 5.02 0.66 5.02 14
11.15 7.49 41,803 0.67 (1) 4.77 0.67 (1) 4.77 21
10.22 (2.44) 38,566 0.69 4.73 0.69 4.73 10
10.88 21.40 14,388 0.50 (1) 5.43 0.85 (1) 5.09 24
10.90 5.46 14,020 0.50 (1) 5.25 0.84 (1) 4.91 22
11.11 7.06 12,586 0.82 (1) 4.84 0.84 (1) 4.82 4
11.41 7.50 12,013 0.84 (1) 4.57 0.84 (1) 4.57 33
10.24 (2.90) 10,719 0.93 (1) 4.52 0.93 (1) 4.52 4
10.80 21.02 23,104 0.50 (1) 5.42 0.77 (1) 5.16 19
10.77 5.04 21,207 0.50 (1) 5.23 0.75 (1) 4.98 32
10.94 6.67 18,476 0.73 (1) 4.90 0.74 (1) 4.89 5
11.15 6.84 18,580 0.75 (1) 4.70 0.75 (1) 4.70 37
10.27 (2.29) 15,659 0.81 (1) 4.69 0.81 (1) 4.69 16
10.85 19.65 53,935 0.66 (1) 5.29 0.66 (1) 5.29 8
10.85 5.27 47,055 0.65 (1) 5.17 0.65 (1) 5.17 --
10.97 6.53 44,056 0.66 5.01 0.66 5.01 8
11.15 6.60 53,808 0.64 (1) 4.75 0.64 (1) 4.75 26
10.19 (3.02) 49,059 0.64 (1) 4.83 0.64 (1) 4.83 6
</TABLE>
53
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Arizona Series,
the California Series, the Florida Series, the Massachusetts Series, the
Michigan Series, the Minnesota Series, the New Jersey Series, the New York
Series, the Ohio Series, and the Pennsylvania Series (constituting the Morgan
Stanley Dean Witter Multi-State Municipal Series Trust, hereafter referred to
as the "Fund") at November 30, 1999, the results of each of their operations
for the year then ended, the changes in each of their net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
As described in Note 6 to the financial statements, the Fund's Trustees have
approved reorganization plans whereby the Massachusetts Series, the Michigan
Series, the Minnesota Series and the Ohio Series would each be merged into
Morgan Stanley Dean Witter Tax-Exempt Securities Trust, the California Series
would be merged into Morgan Stanley Dean Witter California Tax-Free Income Fund
and the New York Series would be merged into Morgan Stanley Dean Witter New
York Tax-Free Income Fund. Each respective Plan is subject to the consent of
the respective Series' shareholders.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
January 26, 2000
54
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FEDERAL INCOME TAX NOTICE (unaudited)
During the year ended November 30, 1999, each Series paid to its shareholders
the following per share amounts from tax-exempt income:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------- ---------- ------- ------------- -------- --------- ---------- -------- ---- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$0.49 $0.52 $0.50 $0.50 $0.48 $0.44 $0.51 $0.49 $0.50 $0.52
</TABLE>
During the year ended November 30, 1999, each Series paid to its shareholders
the following per share amounts from long-term capital gains:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN MINNESOTA NEW JERSEY NEW YORK OHIO PENNSYLVANIA
------- ---------- ------- ------------- -------- --------- ---------- -------- ---- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$0.16 $0.19 $0.37 $0.11 $0.43 $0.09 $0.16 $0.36 $0.13 $0.12
</TABLE>
55
<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
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. Read
the prospectus carefully before investing.
MORGAN STANLEY
DEAN WITTER
MULTI-STATE
MUNICIPAL
SERIES TRUST
Annual Report
November 30, 1999
