<PAGE>
Filed Pursuant to Rule 497(c)
Registration File No.: 33-41187
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PROSPECTUS - JULY 28, 1999
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Morgan Stanley Dean Witter
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SHORT-TERM U.S. TREASURY TRUST
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A MUTUAL FUND THAT SEEKS CURRENT INCOME,
PRESERVATION OF PRINCIPAL AND LIQUIDITY
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this Prospectus. Any
representation to the contrary is a criminal offense.
<PAGE>
CONTENTS
The Fund Investment Objective ................................1
Principal Investment Strategies .....................1
Principal Risks .....................................1
Past Performance ....................................3
Fees and Expenses ...................................4
Additional Investment Strategy Information ..........4
Additional Risk Information .........................4
Fund Management .....................................5
Shareholder Information Pricing Fund Shares .................................6
How to Buy Shares ...................................6
How to Exchange Shares ..............................7
How to Sell Shares ..................................9
Distributions ......................................11
Tax Consequences ...................................11
Financial Highlights ................................................... 13
Our Family of Funds .................................... Inside Back Cover
This Prospectus contains important information about
the Fund. Please read it carefully and keep it for
future reference.
<PAGE>
THE FUND
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INVESTMENT OBJECTIVE
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Morgan Stanley Dean Witter Short-Term U.S. Treasury Trust (the "Fund") seeks
current income, preservation of principal and liquidity.
[GRAPHIC OMITTED]
PRINCIPAL INVESTMENT STRATEGIES
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The Fund will invest all of its net assets in U.S. Treasury securities. The
Fund's "Investment Manager," Morgan Stanley Dean Witter Advisors Inc., seeks to
maintain a portfolio with a dollar-weighted average maturity of less than 3
years.
(sidebar)
INCOME
An investment objective having the goal of selecting securities to pay out
income rather than rise in price.
(end sidebar)
U.S. Treasury securities are direct obligations of the U.S. government and can
take the form of bonds, notes or bills. The U.S. government borrows money from
the investor who buys the security. U.S. Treasury securities generally pay
interest at regular intervals until they mature, at which point investors get
their principal back. U.S. Treasury securities are backed by the "full faith
and credit" of the U.S. government.
ZERO COUPON TREASURY SECURITIES. A portion of the U.S. Treasury securities
purchased by the Fund may be "zero coupon" Treasury securities. These are U.S.
Treasury notes and bonds which have been stripped of their unmatured interest
coupons and receipts or which are certificates representing interests in such
stripped debt obligations and coupons. Such securities are purchased at a
discount from their face amount, giving the purchaser the right to receive
their full value at maturity. A zero coupon security pays no interest to its
holder during its life. Its value to an investor consists of the difference
between its face value at the time of maturity and the price for which it was
acquired, which is generally an amount significantly less than its face value
(sometimes referred to as a "deep discount" price).
In pursuing the Fund's investment objective, the Investment Manager has
considerable leeway in deciding which investments it buys, holds or sells on a
day-to-day basis -- and which trading strategies it uses. For example, the
Investment Manager in its discretion may determine to use some permitted
trading strategies while not using others.
[GRAPHIC OMITTED]
PRINCIPAL RISKS
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There is no assurance that the Fund will achieve its objective. The Fund's
share price will fluctuate with changes in the market value of the Fund's
portfolio securities. The Fund's yield also will vary based on the yield of the
Fund's portfolio securities. Neither the value nor the yield of the U.S.
government securities that the Fund invests in (or the value or yield of the
Fund's shares) is guaranteed by the U.S. government. When you sell Fund shares,
they may be worth less than what you paid for them and, accordingly, you can
lose money investing in this Fund.
U.S. TREASURY SECURITIES. A principal risk of investing in the Fund is
associated with its U.S. Treasury securities, which are fixed-income
securities. All fixed-income securities are subject to two types of risk:
credit risk and interest rate risk. Credit risk refers to the possibility that
the issuer of a security will be unable to make interest payments and/or repay
the principal on its debt. The credit risk associated with U.S. Treasury
securities is minimal.
1
<PAGE>
Interest rate risk refers to fluctuations in the value of a fixed-income
security resulting from changes in the general level of interest rates. When
the general level of interest rates goes up, the prices of most fixed-income
securities go down. When the general level of interest rates goes down, the
prices of most fixed-income securities go up. As merely illustrative of the
relationship between fixed-income securities and interest rates, the following
table shows how interest rates affect bond prices.
<TABLE>
<CAPTION>
HOW INTEREST RATES AFFECT BOND PRICES
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PRICE PER $1,000 OF A BOND IF INTEREST RATES:
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INCREASE DECREASE
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<S> <C> <C> <C> <C> <C>
BOND MATURITY COUPON 1% 2% 1% 2%
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1 Year N/A $1,000 $1,000 $1,000 $1,000
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5 Years 4.25% $967 $934 $1,038 $1,076
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10 Years 4.75% $930 $867 $1,074 $1,155
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30 Years 5.25% $865 $756 $1,166 $1,376
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</TABLE>
Coupons reflect yields on Treasury securities as of December 31, 1998. The
table is an illustration and does not represent expected yields or share price
changes of any Morgan Stanley Dean Witter mutual fund.
The interest earned on zero coupon Treasury securities is, implicitly,
automatically compounded and paid out at maturity. While such compounding at a
constant rate eliminates the risk of receiving lower yields upon reinvestment
of interest if prevailing interest rates decline, the owner of a zero coupon
security will be unable to participate in higher yields upon reinvestment of
interest received if prevailing interest rates rise. For this reason, zero
coupon securities are subject to substantially greater market price
fluctuations during periods of changing prevailing interest rates than are
comparable debt securities which make current distributions of interest.
The performance of the Fund also will depend on whether the Investment Manager
is successful in pursuing the Fund's investment strategy.
Shares of the Fund are not bank deposits and are not guaranteed or insured by
the FDIC or any other government agency.
2
<PAGE>
[GRAPHIC OMITTED]
PAST PERFORMANCE
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The bar chart and table below provide some indication of the risks of investing
in the Fund. The Fund's past performance does not indicate how the Fund will
perform in the future.
ANNUAL TOTAL RETURNS -- CALENDAR YEARS
1992 '93 '94 '95 '96 '97 '98
---- --- --- --- --- --- ---
5.38% 4.96% -1.23% 9.82% 3.89% 6.07% 6.90%
(sidebar)
ANNUAL TOTAL RETURNS
This chart shows how the performance of the Fund's shares has varied from year
to year over the past 7 calendar years.
(end sidebar)
(sidebar)
AVERAGE ANNUAL TOTAL RETURNS
This table compares the Fund's average annual returns with those of a broad
measure of market performance over time as well as with an average of funds
with similar investment objectives.
(end sidebar)
Year-to-date total return as of June 30, 1999 was 0.14%.
During the periods shown in the bar chart, the highest return for a calendar
quarter was 4.02% (quarter ended September 30, 1998) and the lowest return for
a calendar quarter was -1.34% (quarter ended March 31, 1994).
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS (AS OF DECEMBER 31, 1998)
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LIFE OF FUND
PAST 1 YEAR PAST 5 YEARS (SINCE 8/13/91)
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<S> <C> <C> <C>
Short-Term U.S. Treasury Trust 6.90% 5.03% 5.51%
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Lehman Brothers 1-3 year Government
Bond Index(1) 6.97% 5.95% 6.31%(3)
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Lipper Short U.S. Treasury Fund Average(2) 6.82% 5.60% 6.18%(4)
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</TABLE>
(1) The Lehman Brothers 1-3 year Government Bond Index is a sub-index of the
Lehman Brothers Government Bond Index and is comprised 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.
(2) 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 than three
years.
(3) For the period August 31, 1991 to December 31, 1998.
(4) For the period August 15, 1991 to December 31, 1998.
3
<PAGE>
[GRAPHIC OMITTED]
FEES AND EXPENSES
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The table below briefly describes the fees and expenses that you may pay if you
buy and hold shares of the Fund. The Fund does not impose an initial or
deferred sales charge and does not charge account or exchange fees.
(sidebar)
ANNUAL FUND OPERATING EXPENSES
These expenses are deducted from the Fund's assets and are based on expenses
paid for the fiscal year ended May 31, 1999.
(end sidebar)
<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES
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Management fee 0.35%
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Distribution and service (12b-1) fees 0.34%
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Other expenses 0.11%
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Total annual Fund operating expenses 0.80%
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</TABLE>
EXAMPLE
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund, your investment has a
5% return each year, and the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the table below shows your
costs at the end of each period based on these assumptions.
<TABLE>
<CAPTION>
EXPENSES OVER TIME
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<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
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$82 $255 $444 $990
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</TABLE>
[GRAPHIC OMITTED]
ADDITIONAL INVESTMENT STRATEGY INFORMATION
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This section provides additional information relating to the Fund's principal
strategies.
The Fund may engage in active and frequent trading of portfolio securities to
achieve its principal investment strategies. The portfolio turnover rate is not
expected to exceed 200% annually under normal circumstances. A high turnover
rate, such as 200%, will increase Fund brokerage costs. It also may increase
the Fund's capital gains, which are passed along to Fund shareholders as
distributions. This, in turn, may increase your tax liability as a Fund
shareholder. See the sections on "Distributions" and "Tax Consequences."
The percentage limitations relating to the composition of the Fund's portfolio
apply at the time the Fund acquires an investment and refers to the Fund's net
assets unless otherwise noted. Subsequent percentage changes that result from
market fluctuations will not require the Fund to sell any portfolio security.
[GRAPHIC OMITTED]
ADDITIONAL RISK INFORMATION
- ---------------------------
This section provides additional information relating to the principal risks of
investing in the Fund.
YEAR 2000. The Fund could be adversely affected if the computer systems
necessary for the efficient operation of the Investment Manager, the Fund's
other service providers and the markets and governmental issuers in which the
Fund invests do not
4
<PAGE>
properly process and calculate date-related information from and after January
1, 2000. While year 2000-related computer problems could have a negative effect
on the Fund, the Investment Manager and its affiliates are working hard to
avoid any problems and to obtain assurances from their service providers that
they are taking similar steps.
In addition, it is possible that the markets for securities in which the Fund
invests may be detrimentally affected by computer failures throughout the
financial services industry beginning January 1, 2000. Improperly functioning
trading systems may result in settlement problems and liquidity issues. In
addition, governmental data processing errors also may result in overall
economic uncertainties. Accordingly, the Fund's investments may be adversely
affected.
[GRAPHIC OMITTED]
FUND MANAGEMENT
- ---------------
The Fund has retained the Investment Manager -- Morgan Stanley Dean Witter
Advisors Inc. -- to provide administrative services, manage its business
affairs and invest its assets, including the placing of orders for the purchase
and sale of portfolio securities. The Investment Manager is a wholly-owned
subsidiary of Morgan Stanley Dean Witter & Co., a preeminent global financial
services firm that maintains leading market positions in each of its three
primary businesses: securities, asset management and credit services. Its main
business office is located at Two World Trade Center, New York, New York 10048.
(sidebar)
MORGAN STANLEY DEAN WITTER ADVISORS INC.
The Investment Manager is widely recognized as a leader in the mutual fund
industry and together with Morgan Stanley Dean Witter Services Company Inc.,
its wholly-owned subsidiary, has more than $136 billion in assets under
management or administration as of June 30, 1999.
(end sidebar)
The Fund's portfolio is managed within the Investment Manager's Taxable Fixed
Income Group. Rajesh K. Gupta, Senior Vice President of the Investment Manager,
is the Fund's portfolio manager. Mr. Gupta has been a portfolio manager at the
Investment Manager for over five years.
The Fund pays the Investment Manager a monthly management fee as full
compensation for the services and facilities furnished to the Fund, and for
Fund expenses assumed by the Investment Manager. The fee is based on the Fund's
average daily net assets. For the fiscal year ended May 31, 1999, the Fund
accrued total compensation to the Investment Manager amounting to 0.35% of the
Fund's average daily net assets.
5
<PAGE>
SHAREHOLDER INFORMATION
[GRAPHIC OMITTED]
PRICING FUND SHARES
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The price of Fund shares, called "net asset value," is based on the value of
the Fund's portfolio securities.
The net asset value per share of the Fund is determined once daily at 4:00 p.m.
Eastern time, on each day that the New York Stock Exchange is open (or, on days
when the New York Stock Exchange closes prior to 4:00 p.m., at such earlier
time). Shares will not be priced on days that the New York Stock Exchange is
closed.
The value of the Fund's portfolio securities is based on the securities' market
price when available. When a market price is not readily available, including
circumstances under which the Investment Manager determines that a security's
market price is not accurate, a portfolio security is valued at its fair value,
as determined under procedures established by the Fund's Board of Trustees. In
these cases, the Fund's net asset value will reflect certain portfolio
securities' fair value rather than their market price.
An exception to the Fund's general policy of using market prices concerns its
short-term debt portfolio securities. Short-term debt portfolio securities with
remaining maturities of sixty days or less at the time of purchase are valued
at amortized cost. However, if the cost does not reflect the securities' market
value, these securities will be valued at their fair value.
[GRAPHIC OMITTED]
HOW TO BUY SHARES
- -----------------
You may open a new account to buy Fund shares or buy additional Fund shares for
an existing account by contacting your Morgan Stanley Dean Witter Financial
Advisor or other authorized financial representative. Your Financial Advisor
will assist you, step-by-step, with the procedures to invest in the Fund. You
may also purchase shares directly by calling the Fund's transfer agent and
requesting an application.
(sidebar)
CONTACTING A FINANCIAL ADVISOR
If you are new to the Morgan Stanley Dean Witter Family of Funds and would like
to contact a Financial Advisor, call (800) THE-DEAN for the telephone number of
the Morgan Stanley Dean Witter office nearest you. You may also access our
office locator on our Internet site at: www.deanwitter.com/funds
(end sidebar)
When you buy Fund shares, the shares are purchased at the next share price
calculated after we receive your purchase order. Your payment is due on the
third business day after you place your purchase order. We reserve the right to
reject any order for the purchase of Fund shares.
6
<PAGE>
<TABLE>
<CAPTION>
MINIMUM INVESTMENT AMOUNTS
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MINIMUM INVESTMENT
------------------
INVESTMENT OPTIONS INITIAL ADDITIONAL
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Regular accounts: $10,000 $ 100
- --------------------------------------------------------------------------------
EasyInvest(SM) (Automatically from your
checking or savings account
or Money Market Fund) $1,000 $ 100*
- --------------------------------------------------------------------------------
</TABLE>
* Provided your schedule of investments totals $10,000 in twelve months.
(sidebar)
EASYINVEST(SM)
A purchase plan that allows you to transfer money automatically from your
checking or savings account or from a Money Market Fund on a semi-monthly,
monthly or quarterly basis. Contact your Morgan Stanley Dean Witter Financial
Advisor for further information about this service.
(end sidebar)
SUBSEQUENT INVESTMENTS SENT DIRECTLY TO THE FUND. In addition to buying
additional Fund shares for an existing account by contacting your Morgan
Stanley Dean Witter Financial Advisor, you may send a check directly to the
Fund. To buy additional shares in this manner:
o Write a "letter of instruction" to the Fund specifying the name(s) on the
account, the account number, the social security or tax identification
number, and the investment amount. The letter must be signed by the account
owner(s).
o Make out a check for the total amount payable to: Morgan Stanley Dean Witter
Short-Term U.S. Treasury Trust.
o Mail the letter and check to Morgan Stanley Dean Witter Trust FSB at P.O.
Box 1040, Jersey City, NJ 07303.
PLAN OF DISTRIBUTION The Fund has adopted a Plan of Distribution in accordance
with Rule 12b-1 under the Investment Company Act of 1940. The Plan allows the
Fund to pay distribution fees of up to 0.35% for the sale and distribution of
shares. It also allows the Fund to pay for services to shareholders of shares.
Because these fees are paid out of the Fund's assets on an ongoing basis, over
time these fees will increase the cost of your investment in shares and may cost
you more than paying other types of sales charges.
[GRAPHIC OMITTED]
HOW TO EXCHANGE SHARES
- ----------------------
PERMISSIBLE FUND EXCHANGES. You may only exchange shares of the Fund for shares
of other continuously offered Morgan Stanley Dean Witter Funds if the Fund
shares were acquired in an exchange of shares initially purchased in a
Multi-Class Fund or an FSC Fund (subject to a front-end sales charge). In that
case, the shares may be subsequently re-exchanged for shares of the same Class
of any Multi-Class Fund or FSC Fund or for shares of a No-Load Fund, a Money
Market Fund or North American Government Income Trust. Of course, if an
exchange is not permitted, you may sell shares of the Fund and buy another
Fund's shares with the proceeds.
See the inside back cover of this Prospectus for each Morgan Stanley Dean
Witter Fund's designation as a Multi-Class Fund, FSC Fund, No-Load Fund or
Money Market Fund. If a Morgan Stanley Dean Witter Fund is not listed, consult
the inside back cover of that Fund's Prospectus for its designation. For
purposes of exchanges, shares of FSC Funds are treated as Class A shares of a
Multi-Class Fund. An exchange privilege
7
<PAGE>
account also may be maintained for you if you acquired Fund shares in exchange
for shares of various Morgan Stanley Dean Witter Funds that were formerly part
of the TCW/DW family of funds.
The current Prospectus for each fund describes its investment objective(s),
policies and investment minimums, and should be read before investment.
EXCHANGE PROCEDURES. You can process an exchange by contacting your Morgan
Stanley Dean Witter Financial Advisor or other authorized financial
representative. Otherwise, you must forward an exchange privilege authorization
form to the Fund's transfer agent -- Morgan Stanley Dean Witter Trust FSB --
and then write the transfer agent or call (800) 869-NEWS to place an exchange
order. You can obtain an exchange privilege authorization form by contacting
your Financial Advisor or other authorized financial representative, or by
calling (800) 869-NEWS. If you hold share certificates, no exchanges may be
processed until we have received all applicable share certificates.
An exchange to any Morgan Stanley Dean Witter Fund (except a Money Market Fund)
is made on the basis of the next calculated net asset values of the Funds
involved after the exchange instructions are accepted. When exchanging into a
Money Market Fund, the Fund's shares are sold at their next calculated net
asset value and the Money Market Fund's shares are purchased at their net asset
value on the following business day.
The Fund may terminate or revise the exchange privilege upon required notice.
The check writing privilege is not available for Money Market Fund shares you
acquire in an exchange.
TELEPHONE EXCHANGES. For your protection when calling Morgan Stanley Dean
Witter Trust FSB, we will employ reasonable procedures to confirm that exchange
instructions communicated over the telephone are genuine. These procedures may
include requiring various forms of personal identification such as name,
mailing address, social security or other tax identification number. Telephone
instructions also may be recorded.
Telephone instructions will be accepted if received by the Fund's transfer
agent between 9:00 a.m. and 4:00 p.m. Eastern time, on any day the New York
Stock Exchange is open for business. During periods of drastic economic or
market changes, it is possible that the telephone exchange procedures may be
difficult to implement, although this has not been the case with the Fund in
the past.
EXCHANGING SHARES OF ANOTHER FUND SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE
("CDSC"). There are special considerations when you exchange shares subject to
a CDSC of another Morgan Stanley Dean Witter Fund for shares of the Fund. When
determining the length of time you held the shares and the corresponding CDSC
rate, any period (starting at the end of the month) during which you held
shares of the Fund will not be counted. Thus, in effect the "holding period"
for purposes of calculating the CDSC is frozen upon exchanging into the Fund.
Nevertheless, if shares subject to a CDSC are exchanged for shares of the Fund,
you will receive a credit when you sell the shares equal to the distribution
(12b-1) fees, if any, you paid on those shares while in the Fund up to the
amount of any applicable CDSC. See the Prospectus of the Fund that charges the
CDSC for more details.
8
<PAGE>
TAX CONSIDERATIONS OF EXCHANGES. If you exchange shares of the Fund for shares
of another Morgan Stanley Dean Witter Fund there are important tax
considerations. For tax purposes, the exchange out of the Fund is considered a
sale of Fund shares -- and the exchange into the other Fund is considered a
purchase. As a result, you may realize a capital gain or loss.
You should review the "Tax Consequences" section and consult your own tax
professional about the tax consequences of an exchange.
FREQUENT EXCHANGES. A pattern of frequent exchanges may result in the Fund
limiting or prohibiting, at its discretion, additional purchases and/or
exchanges. The Fund will notify you in advance of limiting your exchange
privileges.
For further information regarding exchange privileges, you should contact your
Morgan Stanley Dean Witter Financial Advisor or call (800) 869-NEWS.
[GRAPHIC OMITTED]
HOW TO SELL SHARES
- ------------------
You can sell some or all of your Fund shares at any time. Your shares will be
sold at the next share price calculated after we receive your order to sell as
described below.
<TABLE>
<S> <C>
OPTIONS PROCEDURES
- ----------------------------------------------------------------------------------------------------------
Contact Your To sell your shares, simply call your Morgan Stanley Dean Witter Financial
Financial Advisor Advisor or other authorized financial representative.
-------------------------------------------------------------------------------------
[GRAPHIC OMITTED] Payment will be sent to the address to which the account is registered or
deposited in your Dean Witter Reynolds brokerage account.
- ----------------------------------------------------------------------------------------------------------
Check-writing You may order a supply of blank checks by requesting them on the investment
Option application or by contacting your Morgan Stanley Dean Witter Financial Advisor.
-------------------------------------------------------------------------------------
[GRAPHIC OMITTED] Checks may be written in any amount not less than $500. You must sign checks
exactly as their shares are registered. If the account is a joint account, the check
may contain one signature unless the joint owners have specified on an
investment application that all owners are required to sign checks. Only
accounts in which no share certificates have been issued are eligible for the
checkwriting privilege.
-------------------------------------------------------------------------------------
Payment of check proceeds normally will be made on the next business day after
we receive your check in proper form. Shares purchased by check (including a
certified or bank cashier's check) are not normally available to cover redemption
checks until fifteen days after Morgan Stanley Dean Witter Trust FSB receives
the check used for investment. A check will not be honored in an amount
exceeding the value of the account at the time the check is presented for
payment.
- ----------------------------------------------------------------------------------------------------------
By Letter You may also sell your shares by writing a "letter of instruction" that includes:
o your account number;
[GRAPHIC OMITTED] o the dollar amount or the number of shares you wish to sell; and
o the signature of each owner as it appears on the account.
-------------------------------------------------------------------------------------
If you are requesting payment to anyone other than the registered owner(s) or
that payment be sent to any address other than the address of the registered
owner(s) or pre-designated bank account, you will need a signature guarantee.
You can obtain a signature guarantee from an eligible guarantor acceptable to
Morgan Stanley Dean Witter Trust FSB. (You should contact Morgan Stanley
Dean Witter Trust FSB at (800) 869-NEWS for a determination as to whether a
particular institution is an eligible guarantor.) A notary public cannot provide a
signature guarantee. Additional documentation may be required for shares held
by a corporation, partnership, trustee or executor.
-------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<S> <C>
By Letter, Mail the letter to Morgan Stanley Dean Witter Trust FSB at P.O. Box 983, Jersey
continued City, NJ 07303. If you hold share certificates, you must return the certificates,
along with the letter and any required additional documentation.
---------------------------------------------------------------------------------------
A check will be mailed to the name(s) and address in which the account is
registered, or otherwise according to your instructions.
- ----------------------------------------------------------------------------------------------------------
Systematic If your investment in all of the Morgan Stanley Dean Witter Family of Funds has
Withdrawal Plan a total market value of at least $10,000, you may elect to withdraw amounts of
$25 or more, or in any whole percentage of a Fund's balance (provided the
[GRAPHIC OMITTED] amount is at least $25), on a monthly, quarterly, semi-annual or annual basis,
from any Fund with a balance of at least $1,000. Each time you add a Fund to the
plan, you must meet the plan requirements.
------------------------------------------------------------------------------------
When you sell Fund shares through the Systematic Withdrawal Plan, the shares
may be subject to a contingent deferred sales charge ("CDSC") if they were
obtained in exchange for shares subject to a CDSC of another Morgan Stanley
Dean Witter Fund. The CDSC, however, will be waived in an amount up to 12%
annually of the Fund's value, although Fund shares with no CDSC will be sold
first, followed by those with the lowest CDSC. As such, the waiver benefit will be
reduced by the amount of your shares that are not subject to a CDSC. See the
Prospectus of the Fund that charges the CDSC for more details.
------------------------------------------------------------------------------------
To sign up for the Systematic Withdrawal Plan, contact your Morgan Stanley
Dean Witter Financial Advisor or call (800) 869-NEWS. You may terminate or
suspend your plan at any time. Please remember that withdrawals from the plan
are sales of shares, not Fund "distributions," and ultimately may exhaust your
account balance. The Fund may terminate or revise the plan at any time.
- ----------------------------------------------------------------------------------------------------------
By Telephone To sell shares by telephone or wire, first complete a telephone redemption
or Wire application designating a bank account. Redemptions for more than $1,000 will
be wired to your bank account (your bank may charge a fee for this service). For
[GRAPHIC OMITTED] redemptions for less than $1,000, a check will be mailed to your bank account. If
you hold share certificates, you may not redeem those shares by this method.
[GRAPHIC OMITTED] For more information or to request a telephone redemption application, call
Morgan Stanley Dean Witter Trust FSB at (800) 869-NEWS.
- ----------------------------------------------------------------------------------------------------------
</TABLE>
PAYMENT FOR SOLD SHARES. After we receive your complete instructions to sell as
described above, a check will be mailed to you within seven days, although we
will attempt to make payment within one business day. Payment may also be sent
to your brokerage account.
Payment may be postponed or the right to sell your shares suspended under
unusual circumstances. If you request to sell shares that were recently
purchased by check, payment of the sale proceeds may be delayed for the minimum
time needed to verify that the check has been honored (not more than fifteen
days from the time we receive the check).
INVOLUNTARY SALES. The Fund reserves the right, on sixty days' notice, to sell
the shares of any shareholder (other than shares held in an IRA or 403(b)
Custodial Account) whose shares, due to sales by the shareholder, have a value
below $1,000 or in the case of an account opened through EasyInvestSM, if after
12 months the shareholder has invested less than $10,000 in the account.
However, before the Fund sells your shares in this manner, we will notify you
and allow you sixty days to make an additional investment in an amount that
will increase the value of your account to at least the required amount before
the sale is processed.
10
<PAGE>
MARGIN ACCOUNTS. If you have pledged your Fund shares in a margin account,
contact your Morgan Stanley Dean Witter Financial Advisor or other authorized
financial representative regarding restrictions on the sale of such shares.
[GRAPHIC OMITTED]
DISTRIBUTIONS
- -------------
The Fund passes substantially all of its earnings from income and capital gains
along to its investors as "distributions." The Fund earns interest from
fixed-income investments. Also, any zero coupon security investments under
federal law accrue a portion of the discount at which the security was purchased
as income even though the Fund receives no interest payments in cash. Interest
is passed along to Fund shareholders as "income dividend distributions." The
Fund realizes capital gains whenever it sells securities for a higher price than
it paid for them. These amounts may be passed along as "capital gain
distributions."
(sidebar)
TARGETED DIVIDENDS(SM)
You may select to have your Fund distributions automatically invested in
another Morgan Stanley Dean Witter Fund that you own. Contact your Morgan
Stanley Dean Witter Financial Advisor for further information about this
service.
(end sidebar)
Normally, income dividends are declared on each day the New York Stock Exchange
is open for business and are distributed to shareholders monthly. Capital
gains, if any, are usually distributed in December. The Fund, however, may
retain and reinvest any long-term capital gains. The Fund may at times make
payments from sources other than income or capital gains that represent a
return of a portion of your investment.
Distributions are reinvested automatically in additional shares of the Fund and
automatically credited to your account, unless you request in writing that all
distributions be paid in cash. If you elect the cash option, processing of your
dividend checks begins immediately following the monthly payment date, and the
Fund will mail a monthly dividend check to you normally during the first seven
days of the following month. No interest will accrue on uncashed checks. If you
wish to change how your distributions are paid, your request should be received
by the Fund's transfer agent, Morgan Stanley Dean Witter Trust FSB, at least
five business days prior to the record date of the distributions.
[GRAPHIC OMITTED]
TAX CONSEQUENCES
- ----------------
As with any investment, you should consider how your Fund investment will be
taxed. The tax information in this Prospectus is provided as general
information. You should consult your own tax professional about the tax
consequences of an investment in the Fund.
Unless your investment in the Fund is through a tax-deferred retirement
account, such as a 401(k) plan or IRA, you need to be aware of the possible tax
consequences when:
o The Fund makes distributions; and
o You sell Fund shares, including an exchange to another Morgan Stanley Dean
Witter Fund.
TAXES ON DISTRIBUTIONS.
- --Federal Taxes. Your distributions are normally subject to federal income tax
when they are paid, whether you take them in cash or reinvest them in Fund
shares. Any income dividend distributions and any short-term capital gains are
taxable to you as ordinary income. Any long-term capital gain distributions are
taxable to you as long-term capital gains, no matter how long you have owned
shares in the Fund.
11
<PAGE>
- --State and Local Taxes. Your income dividend distributions are normally exempt
from state and local income taxes. Any short-term capital gains are taxable to
you as ordinary income. Any long-term capital gain distributions are taxable to
you as long-term capital gains, no matter how long you have owned shares in the
Fund.
Every January, you will be sent a statement (IRS Form 1099-DIV) showing the
distributions paid to you in the previous year. The statement provides full
information on your dividends and capital gains for tax purposes.
TAXES ON SALES. Your sale of Fund shares normally is subject to federal and
state income tax and may result in a taxable gain or loss to you. A sale also
may be subject to local income tax. Your exchange of Fund shares for shares of
another Morgan Stanley Dean Witter Fund is treated for tax purposes like a sale
of your original shares and a purchase of your new shares. Thus, the exchange
may, like a sale, result in a taxable gain or loss to you and will give you a
new tax basis for your new shares.
When you open your Fund account, you should provide your social security or tax
identification number on your investment application. By providing this
information, you will avoid being subject to a federal backup withholding tax
of 31% on taxable distributions and sale proceeds. Any withheld amount would be
sent to the IRS as an advance tax payment.
12
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Fund's
financial performance for the past 5 years of the Fund. Certain information
reflects financial results for a single Fund share. The total returns in the
table represent the rate an investor would have earned or lost on an investment
in the Fund (assuming reinvestment of all dividends and distributions).
This information has been audited by PricewaterhouseCoopers, LLP, whose report,
along with the Fund's financial statements, is included in the annual report,
which is available upon request.
<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.
13
<PAGE>
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16
<PAGE>
MORGAN STANLEY DEAN WITTER
FAMILY OF FUNDS
The Morgan Stanley Dean Witter Family of Funds
offers investors a wide range of investment choices.
Come on in and meet the family!
- --------------------------------------------------------------------------------
GROWTH FUNDS
Aggressive Equity Fund
American Opportunities Fund
Capital Growth Securities
Developing Growth Securities
Equity Fund
Growth Fund
Market Leader Trust
Mid-Cap Equity Trust
Small Cap Growth Fund
Special Value Fund
Value Fund
THEME FUNDS
Financial Services Trust
Health Sciences Trust
Information Fund
Natural Resource Development Securities
Precious Metals and Minerals Trust
GLOBAL/INTERNATIONAL FUNDS
Competitive Edge Fund - "Best Ideas" Portfolio
European Growth Fund
Fund of Funds - International Portfolio
International Fund
International SmallCap Fund
Japan Fund
Latin American Growth Fund
Pacific Growth Fund
- --------------------------------------------------------------------------------
GROWTH & INCOME FUNDS
Balanced Growth Fund
Balanced Income Fund
Convertible Securities Trust
Dividend Growth Securities
Fund of Funds - Domestic Portfolio
Income Builder Fund
Mid-Cap Dividend Growth Securities
S&P 500 Index Fund
S&P 500 Select Fund
Strategist Fund
Total Return Trust
Value-Added Market Series/Equity Portfolio
THEME FUNDS
Global Utilities Fund
Real Estate Fund
Utilities Fund
GLOBAL FUNDS
Global Dividend Growth Securities
- --------------------------------------------------------------------------------
INCOME FUNDS
GOVERNMENT INCOME FUNDS
Federal Securities Trust
Short-Term U.S. Treasury Trust
U.S. Government Securities Trust
DIVERSIFIED INCOME FUNDS
Diversified Income Trust
CORPORATE INCOME FUNDS
High Yield Securities
Intermediate Income Securities
Short-Term Bond Fund(NL)
GLOBAL INCOME FUNDS
North American Government Income Trust
World Wide Income Trust
TAX-FREE INCOME FUNDS
California Tax-Free Income Fund
Hawaii Municipal Trust(FSC)
Limited Term Municipal Trust(NL)
Multi-State Municipal Series Trust(FSC)
New York Tax-Free Income Fund
Tax-Exempt Securities Trust
- --------------------------------------------------------------------------------
MONEY MARKET FUNDS
TAXABLE MONEY MARKET FUNDS
Liquid Asset Fund(MM)
U.S. Government Money Market Trust(MM)
TAX-FREE MONEY MARKET FUNDS
California Tax-Free Daily Income Trust(MM)
N.Y. Municipal Money Market Trust(MM)
Tax-Free Daily Income Trust(MM)
There may be funds created after this Prospectus was published. Please consult
the inside back cover of a new Fund's prospectus for its designation, e.g.,
Multi-Class Fund or Money Market Fund.
Unless otherwise noted, each listed Morgan Stanley Dean Witter Fund, except for
North American Government Income Trust and Short-Term U.S. Treasury Trust, is a
Multi-Class Fund. A Multi-Class Fund is a mutual fund offering multiple Classes
of shares. The other types of Funds are: NL -- No-Load (Mutual) Fund; MM --
Money Market Fund; FSC -- A mutual fund sold with a front-end sales charge and
a distribution (12b-1) fee.
<PAGE>
MORGAN STANLEY DEAN WITTER
SHORT-TERM U.S. TREASURY TRUST
Additional information about the Fund's investments is available in the Fund's
Annual and Semi-Annual Reports to Shareholders. In the Fund's Annual Report,
you will find a discussion of the market conditions and investment strategies
that significantly affected the Fund's performance during its last fiscal year.
The Fund's Statement of Additional Information also provides additional
information about the Fund. The Statement of Additional Information is
incorporated herein by reference (legally is part of this Prospectus). For a
free copy of any of these documents, to request other information about the
Fund, or to make shareholder inquiries, please call:
(800) 869-NEWS
TICKER SYMBOL:
DWSHX
You also may obtain information about the Fund by calling your Morgan Stanley
Dean Witter Financial Advisor or by visiting our Internet site at:
WWW.DEANWITTER.COM/FUNDS
Information about the Fund (including the Statement of Additional Information)
can be viewed and copied at the Securities and Exchange Commission's Public
Reference Room in Washington, DC. Information about the Reference Room's
operations may be obtained by calling the SEC at (800) SEC-0330. Reports and
other information about the Fund are available on the SEC's Internet site at
(www.sec.gov), and copies of this information may be obtained, upon payment of
a duplicating fee, by writing the Public Reference Section of the SEC,
Washington, DC 20549-6009.
(THE FUND'S INVESTMENT COMPANY ACT FILE NO. IS 811-6330)
