<PAGE>
MORGAN STANLEY DEAN WITTER
SHORT-TERM U.S. TREASURY TRUST Two World Trade Center,
LETTER TO THE SHAREHOLDERS May 31, 1999 New York, New York 10048
DEAR SHAREHOLDER:
During the twelve-month period ended May 31, 1999, the U.S. economy continued
to display signs of robust expansion as employment grew, income climbed and
consumers remained confident. In October and November 1998 the Federal Reserve
Board reduced the federal-funds rate in three steps from 5.50 percent to 4.75
percent, which provided some stability to a global marketplace rocked by one
financial crisis after another. Until recently, the lingering effects of last
year's economic turmoil in Asia and Russia and signs of distress in Latin
American economies had held inflation in check. However, strong economic growth
domestically during the period under review caused a rise in inflation.
Interest rates on short-term U.S. Treasury securities were highly volatile
during the period under review, with yields on two-year Treasury notes ranging
from 3.82 percent to 5.59 percent. On May 31, 1999, the two-year Treasury note
was yielding 5.42 percent, compared to 5.52 percent twelve months earlier.
PERFORMANCE
For the twelve-month period ended May 31, 1999, Morgan Stanley Dean Witter
Short-Term U.S. Treasury Trust produced a total return of 4.50 percent versus
4.51 percent for the Lipper Short U.S. Treasury Fund Average and 5.28 percent
for the Lehman Brothers 1-3 Year Government Bond Index. The volatile
interest-rate environment negatively affected the Fund's performance. The
accompanying chart illustrates the performance of the Fund compared to the
Lipper and Lehman indexes.
PORTFOLIO STRATEGY
In response to the overwhelming strength of the U.S. economy and the calming of
the global markets, the Fund's average maturity was decreased to approximately
2.3 years as of May 31, 1999. As 1999 progresses, however, the average maturity
of the portfolio may be increased to enhance the portfolio's income and its
potential for total return, should market conditions warrant such a change.
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
LETTER TO THE SHAREHOLDERS May 31, 1999, continued
MORGAN STANLEY DEAN WITTER SHORT TERM U.S. TREASURY TRUST
FUND PREFORMANCE MAY 31, 1999
GROWTH OF $10,000
DATE TOTAL LEHMAN LIPPER
------------------------------------------------------------
August 13, 1991 $10,000 $10,000 $10,000
------------------------------------------------------------
May 31, 1992 $10,655 $10,685 $10,698
------------------------------------------------------------
May 31, 1993 $11,373 $11,414 $11,499
------------------------------------------------------------
May 31, 1994 $11,401 $11,645 $11,690
------------------------------------------------------------
May 31, 1995 $12,110 $12,498 $12,519
------------------------------------------------------------
May 31, 1996 $12,606 $13,157 $13,100
------------------------------------------------------------
May 31, 1997 $13,315 $14,027 $13,871
------------------------------------------------------------
May 31, 1998 $14,205 $15,004 $14,805
------------------------------------------------------------
May 31, 1999 $14,844 (2) $15,802 $15,473
------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
------ ------ ------- ---------------
(8/13/91)
------------------------------------------------------------
4.5 (1) 5.42 (1) 5.20 (1)
------------------------------------------------------------
-- Fund -- Lehman(3) -- Lipper(4)
Past performance is not predictive of future returns.
- -------------------------
(1) Figure shown assumes reinvestment of all distributions. There is no sales
charge.
(2) Closing value assuming a complete redemption on May 31, 1999
(3) The Lehman Brothers 1-3 Year Government Bond Index is a sub-index of the
Lehman Brothers Government Bond Index and is composed of Agency and Treasury
securities with maturities of one to three years. The Index does not include
any expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
(4) The Lipper Short U.S. Treasury Fund Average tracks the performance of all
funds which invest at least 65% of their assets in U.S. Treasury bills,
notes, and bonds with dollar-weighted average maturities of less then three
years.
The Fund maintains a diversified investment strategy across the maturity
spectrum, often out to a maximum of five years. The Fund continues to offer
investors income free from state and local taxes in all 50 states and the
District of Columbia.
LOOKING AHEAD
In the months ahead, we believe that U.S. economic growth is likely to slow as
inflation remains within a reasonable band. Should our economy continue to show
signs of inordinately strong growth and begin to register high levels of
inflation, the Federal Reserve Board will need to reassess its current stance
on monetary policy. Accordingly, adjustments to the Fund's maturity and
portfolio composition may be made as conditions warrant and attractive
opportunities become available. However, we believe that the deflationary trend
evident in the Asian and emerging-market economies is likely to help keep
inflation in check in the United States well into 2000, despite the sharp rise
in oil prices thus far in 1999.
On May 1, 1999, Mitchell M. Merin was named President of the Morgan Stanley
Dean Witter Funds. Mr. Merin is also the President and Chief Operating Officer
of Asset Management for Morgan Stanley Dean Witter & Co. and President, Chief
Executive Officer and Director of Morgan Stanley Dean Witter Advisors Inc., the
Fund's investment manager. He also serves as Chairman, Chief Executive Officer
and Director of the Fund's distributor and transfer agent.
We appreciate your ongoing support of Morgan Stanley Dean Witter Short-Term
U.S. Treasury 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 SHORT-TERM U.S. TREASURY TRUST
PORTFOLIO OF INVESTMENTS May 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ----------- --------------------------------------------------------- ------------ ----------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (105.4 %)
U.S. Treasury Notes (85.6 %)
$ 1,500 02/28/01 ................................................ 5.00 % $ 1,490,460
11,500 04/30/01 ................................................ 5.00 11,415,935
14,100 08/15/03 ................................................ 5.25 13,882,719
22,000 05/15/04 ................................................ 5.25 21,587,160
16,000 06/30/03 ................................................ 5.375 15,837,280
21,700 01/31/03 ................................................ 5.50 21,594,972
3,300 11/15/00 ................................................ 5.75 3,318,183
5,600 10/31/02 ................................................ 5.75 5,622,232
4,800 11/30/02 ................................................ 5.75 4,816,128
4,400 06/30/99 ................................................ 6.00 4,404,972
14,700 07/31/02 ................................................ 6.00 14,868,609
26,930 09/30/00 ................................................ 6.125 27,204,955
17,100 12/31/01 ................................................ 6.125 17,342,649
13,500 04/30/01 ................................................ 6.25 13,701,690
18,000 10/31/01 ................................................ 6.25 18,301,500
3,500 02/28/02 ................................................ 6.25 3,560,305
2,200 06/30/02 ................................................ 6.25 2,239,974
1,600 01/15/00 ................................................ 6.375 1,613,168
8,000 04/30/00 ................................................ 6.75 8,112,320
20,000 02/29/00 ................................................ 7.125 20,306,000
36,000 11/30/99 ................................................ 7.75 36,496,440
-------------
267,717,651
-------------
U.S. Treasury Strips (19.8 %)
39,100 08/15/00 ................................................ 0.00 36,723,502
29,900 05/15/02 ................................................ 0.00 25,391,678
-------------
62,115,180
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Identified Cost $331,012,469) (a)....................... 105.4 % 329,832,831
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS .......... (5.4) (16,774,004)
-------------
NET ASSETS .............................................. 100.0 % $ 313,058,827
=============
</TABLE>
- ---------------------
(a) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $2,047,907 and the
aggregate gross unrealized depreciation is $3,227,545, resulting in net
unrealized depreciation of $1,179,638.
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $331,012,469) ............ $329,832,831
Cash ......................................... 475,061
Receivable for:
Interest ................................... 4,531,981
Shares of beneficial interest sold ......... 1,309
Prepaid expenses and other assets ............ 25,811
-------------
TOTAL ASSETS ............................ 334,866,993
-------------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased .......................... 21,425,946
Plan of distribution fee ................... 95,672
Investment management fee .................. 95,672
Dividends to shareholders .................. 83,438
Accrued expenses and other payables .......... 107,438
-------------
TOTAL LIABILITIES ....................... 21,808,166
-------------
NET ASSETS .............................. $313,058,827
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital .............................. $332,712,240
Net unrealized depreciation .................. (1,179,638)
Accumulated undistributed net investment
income .................................... 138,942
Accumulated net realized loss ................ (18,612,717)
-------------
NET ASSETS .............................. $313,058,827
=============
NET ASSET VALUE PER SHARE,
31,613,177 shares outstanding
(unlimited shares authorized of $.01
par value) ................................ $9.90
=====
</TABLE>
STATEMENT OF OPERATIONS
For the year ended May 31, 1999
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ............................... $17,781,073
-----------
EXPENSES
Investment management fee ..................... 1,081,244
Plan of distribution fee ...................... 1,060,017
Transfer agent fees and expenses .............. 112,121
Professional fees ............................. 63,566
Registration fees ............................. 63,276
Shareholder reports and notices ............... 46,759
Trustees' fees and expenses ................... 21,093
Custodian fees ................................ 14,153
Other ......................................... 19,803
-----------
TOTAL EXPENSES ........................... 2,482,032
-----------
NET INVESTMENT INCOME .................... 15,299,041
-----------
NET REALIZED AND UNREALIZED LOSS:
Net realized loss ............................. (147,939)
Net change in unrealized appreciation ......... (3,693,983)
-----------
NET LOSS ................................. (3,841,922)
-----------
NET INCREASE .................................. $11,457,119
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MAY 31, 1999 MAY 31, 1998
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................ $ 15,299,041 $ 12,745,247
Net realized loss .................................... (147,939) (250,683)
Net change in unrealized appreciation ................ (3,693,983) 3,306,205
------------- -------------
NET INCREASE ...................................... 11,457,119 15,800,769
Dividends from net investment income ................. (15,365,360) (12,934,573)
Net increase from transactions in shares of beneficial
interest ........................................... 75,942,528 7,891,155
------------- -------------
NET INCREASE ...................................... 72,034,287 10,757,351
NET ASSETS:
Beginning of period .................................. 241,024,540 230,267,189
------------- -------------
END OF PERIOD
(Including undistributed net investment income of
$138,942 and $205,261, respectively) .............. $ 313,058,827 $ 241,024,540
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Short-Term U.S. Treasury Trust (the "Fund"), is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a diversified, open-end management investment company. The Fund's investment
objective is current income, preservation of principal and liquidity. The Fund
seeks to achieve its objective by investing its assets in U.S. Treasury
securities backed by the full faith and credit of the U.S. Government. The Fund
was organized as a Massachusetts business trust on June 4, 1991 and commenced
operations on August 13, 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 -- (1) portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (2) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager"), that sale or bid prices are not reflective of a security's market
value, portfolio securities are valued at their fair value as determined in
good faith under procedures established by and under the general supervision of
the Trustees (valuation of debt securities for which market quotations are not
readily available may be based upon current market prices of securities which
are comparable in coupon, rating and maturity or an appropriate matrix
utilizing similar factors); and (3) 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 over the life of the respective securities. Interest
income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
6
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999, continued
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the ex-dividend 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.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with the Investment Manager, the
Fund pays the Investment Manager a management fee, accrued daily and payable
monthly, by applying the annual rate of 0.35% to the net assets of the Fund
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, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Manager. The
Investment Manager also bears the cost of telephone services, heat, light,
power and other utilities provided to the Fund.
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 Distributor bears the expense of all promotional and
distribution related activities on behalf of the Fund, except for expenses that
the Trustees determine to reimburse, as described below. The following
activities and services may be provided by the Distributor under the Plan: (1)
compensation to, and expenses of, Morgan Stanley Dean Witter Financial
Advisors, other employees and selected broker-dealers; (2) sales incentives and
bonuses to sales representatives and to marketing personnel in connection with
promoting sales of the Fund's shares; (3) expenses incurred in connection with
promoting
7
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999, continued
sales of the Fund's shares; (4) preparing and distributing sales literature;
and (5) providing advertising and promotional activities, including direct mail
solicitation and television, radio, newspaper, magazine and other media
advertisements.
The Fund is authorized to reimburse the Distributor for specific expenses the
Distributor incurs or plans to incur in promoting the distribution of the
Fund's shares. The amount of each monthly reimbursement payment may in no event
exceed an amount equal to a payment at the annual rate of 0.35% of the Fund's
average daily net assets during the month. For the year ended May 31, 1999, the
distribution fee was accrued at the annual rate of 0.34%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales/maturities of portfolio
securities for the year ended May 31, 1999 aggregated $533,813,143 and
$457,536,267, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At May 31, 1999, the Fund had
transfer agent fees and expenses payable of approximately $900.
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 May 31, 1999 included in
Trustees' fees and expenses in the Statement of Operations amounted to $6,942.
At May 31, 1999, the Fund had an accrued pension liability of $43,162 which is
included in accrued expenses in the Statement of Assets and Liabilities.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MAY 31, 1999 MAY 31, 1998
----------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------- ------------------ ---------------- -------------------
<S> <C> <C> <C> <C>
Shares sold ........................................ 104,838,196 $1,054,466,860 28,646,260 $ 285,059,941
Shares issued in reinvestment of dividends ......... 1,157,486 11,633,092 1,058,231 10,524,484
----------- -------------- ---------- --------------
105,995,682 1,066,099,952 29,704,491 295,584,425
Shares repurchased ................................. (98,574,910) (990,157,424) (28,891,924) (287,693,270)
----------- -------------- ----------- --------------
Net increase ....................................... 7,420,772 $ 75,942,528 812,567 $ 7,891,155
=========== ============== =========== ==============
</TABLE>
8
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1999, continued
6. FEDERAL INCOME TAX STATUS
At May 31, 1999, the Fund had a net capital loss carryover of approximately
$18,379,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through May 31 of the following
years:
<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
----------------------------------------------
2003 2004 2005 2006 2007
------- ------ ---- ---- ----
<S> <C> <C> <C> <C>
$11,507 $6,271 $333 $246 $22
======= ====== ==== ==== ===
</TABLE>
Capital losses incurred after October 31 ("post-October losses") within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
approximately $234,000 during fiscal 1999.
As of May 31, 1999, the Fund had temporary book\tax differences primarily
attributable to post-October losses.
7. RISK RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may invest a portion of its assets in zero coupon U.S. Treasury
securities. Zero coupon securities are subject to substantially greater market
fluctuations during periods of changing prevailing interest rates than are
comparable debt securities.
9
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MAY 31,
-------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $9.96 $9.85 $9.84 $9.98 $9.88
----- ----- ----- ----- -----
Income (loss) from investment operations:
Net investment income ............................ 0.50 0.53 0.54 0.54 0.49
Net realized and unrealized gain (loss) .......... (0.06) 0.11 -- (0.14) 0.10
----- ----- ----- ----- -----
Total income from investment operations ........... 0.44 0.64 0.54 0.40 0.59
----- ----- ----- ----- -----
Less dividends from net investment income ......... (0.50) (0.53) (0.53) (0.54) (0.49)
----- ----- ----- ----- -----
Net asset value, end of period .................... $9.90 $9.96 $9.85 $9.84 $9.98
===== ===== ===== ===== =====
TOTAL RETURN+ ..................................... 4.50% 6.68% 5.63% 4.09% 6.22%
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 0.80% 0.82% 0.83% 0.84% 0.84%
Net investment income ............................. 4.95% 5.30% 5.42% 5.33% 4.93%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $313,059 $241,025 $230,267 $258,637 $273,184
Portfolio turnover rate ........................... 164% 95% 149% 63% 30%
</TABLE>
- -------------
+ Calculated based on the net asset value as of the last business day of
the period.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio 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 Morgan Stanley Dean Witter
Short-Term U.S. Treasury Trust (the "Fund") at May 31, 1999, the results of its
operations for the year then ended, the changes in its 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 May 31, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
June 22, 1999
11
<PAGE>
TRUSTEES
Michael Bozic MORGAN STANLEY
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn SHORT-TERM
Wayne E. Hedien U.S. TREASURY
Dr. Manuel H. Johnson TRUST
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
Rajesh K. Gupta
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanely Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
This report is submitted for the general information of shareholders
of the Fund. For more detailed information about the Fund, its officers
and trustees, fees, expenses and other pertinent information, please see
the prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
ANNUAL REPORT
May 31, 1999
