<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
LETTER TO THE SHAREHOLDERS September 30, 2000
Two World Trade Center, New York, New York 10048
DEAR SHAREHOLDER:
During the six-month period ended September 30, 2000, investors' attention was
focused on rising oil prices, a declining euro and the prospects for companies
missing estimates during the upcoming earnings season. Concerns about these
three events led to increased volatility in the stock market, continuing the
rapid rotation between old- and new-economy stocks that has been a theme
throughout 2000. Technology stocks, as measured by the Nasdaq index, reflected
the extremes that have been experienced by the markets this year. The Nasdaq
was down 5 percent in July but roared back in August, gaining 12 percent, only
to cool materially in September, declining almost 13 percent.
Since the beginning of the year we have seen investor interest rotate from
technology into more defensive stocks, such as health care issues, and most
recently financials. In 1999 the market had become extremely narrow with only a
few large-capitalization technology stocks, such as Microsoft, Cisco and Intel,
responsible for most of the market's performance. In 2000, the market broadened
significantly, with 60 percent of the stocks in the Standard & Poor's 500 Index
(S&P 500) outperforming the index as a whole, compared to 30 percent in 1999.
PERFORMANCE AND PORTFOLIO STRATEGY
For the six-month period ended September 30, 2000, Morgan Stanley Dean Witter
Growth Fund's Class B shares returned -5.33 percent, compared to a return of
-3.60 percent for the S&P 500 Index.* For the same period, the Fund's Class A,
C and D shares had total returns of -5.16 percent, -5.54 percent and -5.08
percent, respectively. The performance of the Fund's four share classes varies
because of differing expenses. Total
---------------------
* The Standard & Poor's 500 Index is a broad-based index, the performance
of which is based on the performance of 500 widely held common stocks
chosen for market size, liquidity and industry group representation. The
Index does not include any expenses, fees or charges. The Index is
unmanaged and should not be considered an investment.
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
LETTER TO THE SHAREHOLDERS September 30, 2000, continued
return figures assume the reinvestment of all distributions but do not reflect
the deduction of any applicable sales charges.
According to Morgan Stanley Dean Witter Investment Management, the Fund's
sub-advisor, the Fund's portfolio is generally diversified among 75 to 100
issues. The portfolio typically holds a balance of classic growth stocks such
as Home Depot, General Electric and Cisco, and less well-known growth names
such as Tyco International and United Technologies. A hallmark of the
sub-advisor's strategy is its philosophy of opportunistic concentration, of
which the Fund's weighting in Tyco is a good example. The Fund can own up to 10
percent of its assets in a single name. The sub-advisor believes that this
willingness to invest according to its convictions should lead to attractive
performance as well as limit portfolio turnover caused by tight weighting
restrictions. In addition, the top ten holdings will typically represent 35 to
45 percent of the portfolio.
Security selection is driven by fundamental equity research, with portfolios
built by using a bottom-up approach. The sub-advisor seeks companies with an
understandable and compelling business strategy, a strong management team and
clear shareholder orientation, market or niche dominance, and most importantly
the prospect of strong earnings growth.
For the period under review, the top contributors to the Fund's performance
relative to the S&P 500 were Warner Lambert (now fully merged with Pfizer),
AT&T, Ciena, Nortel Networks and United Technologies. An overweighted position
in capital goods and health care significantly contributed to performance on
both an absolute and a relative basis. However, underweighted positions in
financials and utilities were the primary reasons for the Fund's
underperformance relative to the S&P 500.
LOOKING AHEAD
Morgan Stanley Dean Witter Investment Management believes the Federal Reserve
Board has engineered a soft landing and may well be finished with its current
round of interest-rate increases. Inflation has picked up modestly but is
still, in the sub-advisor's view, benign. Government budget surpluses around
the world and the influence of the Internet as a de facto price deflator,
combined with modest inflation, all have the effect of keeping interest rates
in check. The sub-advisor believes that this scenario should bode well for
growth stock investors.
2
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
LETTER TO THE SHAREHOLDERS September 30, 2000, continued
We appreciate your ongoing support of Morgan Stanley Dean Witter Growth Fund
and look forward to continuing to serve your investment needs.
Very truly yours,
/s/ Charles A. Fiumefreddo /s/ Mitchell M. Merin
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
3
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FUND PERFORMANCE SEPTEMBER 30, 2000
AVERAGE ANNUAL TOTAL RETURNS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A SHARES*
---------------------------------------------------------------
PERIOD ENDED 9/30/00
---------------------------
<S> <C> <C>
1 Year 27.25%(1) 20.57%(2)
Since Inception (7/28/97) 20.24%(1) 18.22%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES+
---------------------------------------------------------------
PERIOD ENDED 9/30/00
---------------------------
<S> <C> <C>
1 Year 26.23%(1) 25.23%(2)
Since Inception (7/28/97) 19.33%(1) 19.33%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES**
---------------------------------------------------------------
PERIOD ENDED 9/30/00
---------------------------
<S> <C> <C>
1 Year 26.81%(1) 21.81%(2)
5 Years 20.40%(1) 20.20%(2)
Since Inception (5/29/92) 16.77%(1) 16.77%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS D SHARES++
---------------------------------------------------------------
PERIOD ENDED 9/30/00
---------------------------
<S> <C>
1 Year 27.56%(1)
Since Inception (7/28/97) 20.52%(1)
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
LESS THAN THEIR ORIGINAL COST.
---------------
(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 sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
* The maximum front-end sales charge for Class A is 5.25%.
** The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%.
The CDSC declines to 0% after six years.
+ The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
++ Class D shares have no sales charge.
4
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
PORTFOLIO OF INVESTMENTS September 30, 2000 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (97.0%)
Advertising/Marketing
Services (0.4%)
81,000 Omnicom Group, Inc. .................. $ 5,907,937
-------------
Aerospace & Defense (2.9%)
338,900 General Dynamics Corp. ............... 21,287,156
283,400 General Motors Corp. (Class H)* ...... 10,536,812
187,300 Textron, Inc. ........................ 8,639,212
-------------
40,463,180
-------------
Apparel/Footwear Retail (0.8%)
569,400 Intimate Brands, Inc. ................ 10,640,662
-------------
Beverages: Alcoholic (1.0%)
337,400 Anheuser-Busch Companies, Inc......... 14,276,237
-------------
Beverages: Non-Alcoholic (1.2%)
357,600 PepsiCo, Inc. ........................ 16,449,600
-------------
Biotechnology (1.2%)
84,950 Amgen Inc.* .......................... 5,931,899
18,200 Ciphergen Biosystem Inc.* ............ 582,400
28,600 Genentech, Inc.* ..................... 5,310,662
13,600 Millennium Pharmaceuticals, Inc.* 1,986,450
81,100 Tularik Inc.* ........................ 2,676,300
-------------
16,487,711
-------------
Broadcasting (0.7%)
168,296 Clear Channel Communications,
Inc.* .............................. 9,508,724
-------------
Cable/Satellite TV (2.4%)
1,110,300 AT&T Corp.-Liberty Media Group
(Class A)* ......................... 19,985,400
323,900 Comcast Corp. (Class A Special)*...... 13,259,656
-------------
33,245,056
-------------
Chemicals: Agricultural (0.0%)
14,400 Eden Bioscience Corp.* ............... 475,200
-------------
Computer Communications (5.6%)
9,600 Brocade Communications
Systems, Inc.* ..................... 2,265,600
1,086,252 Cisco Systems, Inc.* ................. 60,015,423
9,100 Cosine Communications Inc.* .......... 505,619
16,000 Extreme Networks, Inc.* .............. 1,832,000
10,900 Inrange Technologies Corp
(Class B)* ......................... 577,700
53,600 Juniper Networks, Inc.* .............. 11,735,050
22,500 McDATA Corp. - (Class B)* ............ 2,765,039
-------------
79,696,431
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Computer Peripherals (2.3%)
217,300 EMC Corp.* ........................... $ 21,539,862
28,000 QLogic Corp.* ........................ 2,464,000
121,900 Seagate Technology, Inc.* ............ 8,411,100
-------------
32,414,962
-------------
Computer Processing
Hardware (3.8%)
143,100 Compaq Computer Corp. ................ 3,946,698
94,500 Hewlett-Packard Co. .................. 9,166,500
141,700 International Business Machines
Corp. .............................. 15,941,250
215,900 Sun Microsystems, Inc.* .............. 25,206,325
-------------
54,260,773
-------------
Discount Stores (1.1%)
81,000 Dollar Tree Stores, Inc.* ............ 3,285,562
267,200 Wal-Mart Stores, Inc. ................ 12,859,000
-------------
16,144,562
-------------
Electric Utilities (0.1%)
62,600 Southern Energy Inc.* ................ 1,964,075
-------------
Electrical Products (0.0%)
6,900 Proton Energy Systems, Inc.* ......... 197,512
-------------
Electronic Components (0.3%)
52,300 Sanmina Corp.* ....................... 4,896,587
-------------
Electronic Equipment/
Instruments (1.3%)
49,228 Gemstar-TV Guide International,
Inc.* ................................ 4,292,066
155,200 JDS Uniphase Corp.* .................. 14,695,500
-------------
18,987,566
-------------
Electronic Production Equipment (1.7%)
350,800 Applied Materials, Inc.* ............. 20,806,825
87,700 ASM Lithography Holding NV *.......... 2,833,806
-------------
23,640,631
-------------
Engineering & Construction (0.3%)
206,200 SpectraSite Holdings, Inc.* .......... 3,827,587
-------------
Finance/Rental/Leasing (1.0%)
258,100 Freddie Mac .......................... 13,953,531
-------------
Financial Conglomerates (3.0%)
264,300 American Express Co. ................. 16,056,225
478,866 Citigroup, Inc. ...................... 25,888,693
-------------
41,944,918
-------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
PORTFOLIO OF INVESTMENTS September 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Food Retail (0.5%)
169,400 Safeway Inc.* ........................ $ 7,908,863
-------------
Food: Major Diversified (0.3%)
60,700 Quaker Oats Company (The) ............ 4,802,888
-------------
Home Improvement Chains (2.8%)
752,350 Home Depot, Inc. (The) ............... 39,921,572
-------------
Hospital/Nursing Management (0.4%)
148,300 HCA-The Healthcare Company ........... 5,505,638
-------------
Household/Personal Care (0.6%)
134,900 Procter & Gamble Co. (The) ........... 9,038,300
-------------
Industrial Conglomerates (15.5%)
1,248,200 General Electric Co. ................. 72,005,538
1,677,200 Tyco International Ltd. (Bermuda) 87,004,750
860,000 United Technologies Corp. ............ 59,555,000
-------------
218,565,288
-------------
Information Technology Services (0.3%)
43,000 StorageNetworks, Inc.* ............... 4,394,063
-------------
Internet Software/Services (0.9%)
40,500 Inktomi Corp.* ....................... 4,617,000
20,300 VeriSign, Inc.* ...................... 4,112,019
40,500 Yahoo! Inc.* ......................... 3,685,500
-------------
12,414,519
-------------
Investment Banks/Brokers (1.1%)
229,000 Merrill Lynch & Co., Inc. ............ 15,114,000
-------------
Major Banks (2.3%)
397,200 Bank of New York Co., Inc. ........... 22,268,025
248,000 FleetBoston Financial Corp. .......... 9,672,000
-------------
31,940,025
-------------
Major Telecommunications (3.1%)
288,451 AT&T Corp. ........................... 8,473,248
497,820 Verizon Communications ............... 24,113,156
385,250 WorldCom, Inc.* ...................... 11,701,969
-------------
44,288,373
-------------
Media Conglomerates (3.0%)
384,600 Time Warner Inc. ..................... 30,094,950
207,246 Viacom, Inc. (Class B)
(Non-Voting)* ...................... 12,123,891
-------------
42,218,841
-------------
Medical Specialties (0.5%)
61,500 PE Corporation-PE Biosystems
Group .............................. 7,164,750
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Multi-Line Insurance (1.2%)
173,250 American International Group,
Inc. ............................... $ 16,577,859
-------------
Packaged Software (3.8%)
506,000 Microsoft Corp.* ..................... 30,486,500
296,900 Oracle Corp.* ........................ 23,380,875
-------------
53,867,375
-------------
Pharmaceuticals: Major (11.4%)
137,900 Abbott Laboratories .................. 6,558,869
343,500 American Home Products Corp. ......... 19,429,219
179,900 Bristol-Myers Squibb Co. ............. 10,276,788
92,500 Johnson & Johnson .................... 8,689,219
103,500 Lilly (Eli) & Co. .................... 8,396,438
190,400 Merck & Co., Inc. .................... 14,172,900
1,639,000 Pfizer Inc. .......................... 73,652,563
321,060 Pharmacia Corp. ...................... 19,323,799
-------------
160,499,795
-------------
Restaurants (0.2%)
100,600 Brinker International, Inc.* ......... 3,030,575
-------------
Semiconductors (7.7%)
40,500 Analog Devices, Inc.* ................ 3,343,781
40,500 Broadcom Corp. (Class A)* ............ 9,871,875
67,500 Infineon Technologies AG (ADR)
(Germany)* ......................... 3,206,250
971,600 Intel Corp. .......................... 40,382,125
114,700 Intersil Holding Corp. * ............. 5,720,663
278,500 Maxim Integrated Products, Inc.*...... 22,401,844
35,800 PMC-Sierra, Inc.* .................... 7,705,950
312,500 Texas Instruments, Inc. .............. 14,746,094
26,700 TranSwitch Corp.* .................... 1,702,125
-------------
109,080,707
-------------
Specialty Stores (0.2%)
83,700 Tiffany & Co. ........................ 3,227,681
-------------
Specialty Telecommunications (0.7%)
127,828 Global Crossing Ltd. (Bermuda)*....... 3,962,668
82,000 Pinnacle Holdings, Inc.* ............. 2,183,250
87,700 TyCom, Ltd.* ......................... 3,365,488
-------------
9,511,406
-------------
Telecommunication Equipment (7.5%)
466,800 American Tower Corp. (Class A)*....... 17,592,525
94,500 CIENA Corp.* ......................... 11,605,781
54,000 Corning Inc. ......................... 16,038,000
270,500 Lucent Technologies Inc. ............. 8,267,156
387,200 Motorola, Inc. ....................... 10,938,400
</TABLE>
See Notes to Financial Statements
6
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
PORTFOLIO OF INVESTMENTS September 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
-----------------------------------------------------------------------
<S> <C> <C>
626,700 Nortel Networks Corp. (Canada) ........ $ 37,327,819
60,700 Scientific-Atlanta, Inc. .............. 3,862,038
-------------
105,631,719
-------------
Tobacco (0.6%)
275,600 Philip Morris Companies, Inc. ......... 8,112,975
-------------
Wireless Communications (1.3%)
349,000 Crown Castle International Corp.*...... 10,840,813
123,200 Nextel Communications, Inc.
(Class A)* .......................... 5,759,600
33,700 SBA Communications Corp.* ............. 1,413,294
-------------
18,013,707
-------------
TOTAL COMMON STOCKS
(Cost $956,115,610) ................... 1,370,214,361
-------------
PREFERRED STOCK (0.5%)
Media Conglomerates
151,300 News Corporation Ltd. (The)
(ADR) (Australia)
(Cost $6,777,510) ................... 7,092,187
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
----------
<S> <C> <C>
SHORT-TERM INVESTMENT (a) (1.4%)
U.S. GOVERNMENT AGENCY
$ 20,000 Federal National Mortgage Assoc.
6.32% due 10/02/00
(Cost $19,995,319) .................. 19,995,319
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $982,888,439) (b) ......... 98.9% 1,397,301,867
OTHER ASSETS IN EXCESS OF
LIABILITIES ..................... 1.1 15,557,377
----- --------------
NET ASSETS ...................... 100.0% $1,412,859,244
===== ==============
</TABLE>
--------------------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Purchased on a discount basis. The interest rate shown has been adjusted to
reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes. The aggregate gross unrealized
appreciation is $446,052,489 and the aggregate gross unrealized
depreciation is $31,639,061, resulting in net unrealized appreciation of
$414,413,428.
See Notes to Financial Statements
7
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments in securities, at value
(cost $982,888,439) ............................. $1,397,301,867
Cash ............................................... 97,328
Receivable for:
Investments sold .............................. 25,039,015
Shares of beneficial interest sold ............ 3,067,170
Dividends ..................................... 759,242
Prepaid expenses and other assets .................. 80,770
--------------
TOTAL ASSETS ................................... 1,426,345,392
--------------
LIABILITIES:
Payable for:
Investments purchased ......................... 11,139,546
Investment management fee ..................... 922,417
Plan of distribution fee ...................... 743,904
Shares of beneficial interest repurchased ..... 509,510
Accrued expenses and other payables ................ 170,771
--------------
TOTAL LIABILITIES .............................. 13,486,148
--------------
NET ASSETS ..................................... $1,412,859,244
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital .................................... $942,199,163
Net unrealized appreciation ........................ 414,413,428
Accumulated net investment loss .................... (5,030,017)
Accumulated undistributed net realized gain ........ 61,276,670
--------------
NET ASSETS ..................................... $1,412,859,244
==============
CLASS A SHARES:
Net Assets ......................................... $17,298,277
Shares Outstanding (unlimited authorized, $.01
par value) ...................................... 901,568
NET ASSET VALUE PER SHARE ...................... $19.19
======
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net
asset value) ................................. $20.25
======
CLASS B SHARES:
Net Assets ......................................... $1,323,257,407
Shares Outstanding (unlimited authorized, $.01
par value) ...................................... 70,062,995
NET ASSET VALUE PER SHARE ...................... $18.89
======
CLASS C SHARES:
Net Assets ......................................... $18,935,139
Shares Outstanding (unlimited authorized, $.01
par value) ...................................... 1,016,528
NET ASSET VALUE PER SHARE ...................... $18.63
======
CLASS D SHARES:
Net Assets ......................................... $53,368,421
Shares Outstanding (unlimited authorized, $.01
par value) ...................................... 2,754,661
NET ASSET VALUE PER SHARE ...................... $19.37
======
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended September 30, 2000 (unaudited)
<TABLE>
<CAPTION>
NET INVESTMENT LOSS:
<S> <C>
INCOME
Dividends (net of $2,734 foreign withholding
tax) ........................................... $ 4,153,295
Interest .......................................... 947,210
--------------
TOTAL INCOME .................................. 5,100,505
--------------
EXPENSES
Investment management fee ......................... 5,285,521
Plan of distribution fee (Class A shares) ......... 19,684
Plan of distribution fee (Class B shares) ......... 4,028,213
Plan of distribution fee (Class C shares) ......... 75,735
Transfer agent fees and expenses .................. 406,093
Registration fees ................................. 140,594
Professional fees ................................. 68,799
Custodian fees .................................... 51,918
Shareholder reports and notices ................... 37,818
Trustees' fees and expenses ....................... 7,050
Other ............................................. 9,097
--------------
TOTAL EXPENSES ................................ 10,130,522
--------------
NET INVESTMENT LOSS ........................... (5,030,017)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain ................................. 63,097,888
Net change in unrealized appreciation ............. (135,767,313)
--------------
NET LOSS ...................................... (72,669,425)
--------------
NET DECREASE ...................................... $ (77,699,442)
==============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
--------------------------------------------------------------------------------------------------
<S> <C> <C>
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss .................................. $ (5,030,017) $ (8,680,288)
Net realized gain .................................... 63,097,888 182,640,866
Net change in unrealized appreciation ................ (135,767,313) 212,096,520
-------------- --------------
NET INCREASE (DECREASE) ........................... (77,699,442) 386,057,098
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAIN:
Class A shares ....................................... (1,369,662) (835,214)
Class B shares ....................................... (119,496,418) (98,247,672)
Class C shares ....................................... (1,389,392) (481,656)
Class D shares ....................................... (2,101,994) (244,877)
-------------- --------------
TOTAL DISTRIBUTIONS ............................... (124,357,466) (99,809,419)
-------------- --------------
Net increase from transactions in shares of beneficial
interest ........................................... 248,572,784 157,445,214
-------------- --------------
NET INCREASE ...................................... 46,515,876 443,692,893
NET ASSETS:
Beginning of period .................................. 1,366,343,368 922,650,475
-------------- --------------
END OF PERIOD
(Including a net investment loss of $5,030,017 and
$0, respectively) ................................. $1,412,859,244 $1,366,343,368
============== ==============
</TABLE>
See Notes to Financial Statements
9
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS September 30, 2000 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Growth Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Fund's investment objective is long-term
growth of capital. The Fund seeks to achieve its objective by investing
primarily in common stocks and securities convertible into common stocks issued
by domestic and foreign companies. The Fund was organized as a Massachusetts
business trust on January 31, 1992 and commenced operations on May 29, 1992. On
July 28, 1997, the Fund converted to a multiple class share structure.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year,
six years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
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) an equity security listed or traded on the
New York or American Stock Exchange, NASDAQ, or other exchange is valued at its
latest sale price, prior to the time when assets are valued; if there were no
sales that day, the security is valued at the latest bid price (in cases where
a security is traded on more than one exchange, the security is valued on the
exchange designated as the primary market pursuant to procedures adopted by the
Trustees); and (2) all other portfolio securities for which over-the-counter
market quotations are readily available are valued at the latest available bid
price; (3) when market quotations are not readily available, including
circumstances under which it is determined by Morgan Stanley Dean Witter
Advisors Inc. (the "Investment Manager") and/or Morgan Stanley Dean Witter
Investment Management Inc. (the "Sub-Advisor"), an affiliate of 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 (4) short-term debt
10
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS September 30, 2000 (unaudited) continued
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.
Dividend income and other distributions are recorded on the ex-dividend date.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.
C. MULTIPLE CLASS ALLOCATIONS - Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date
such items are recognized. Distribution fees are charged directly to the
respective class.
D. 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.
E. 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 tax purposes are reported as distributions of paid-in-capital.
2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.80% to the portion of daily net assets not exceeding
$750 million; 0.75% to the portion of daily net assets exceeding $750 million
but not exceeding $1.5 billion; and 0.70% to the portion of daily net assets
exceeding $1.5 billion.
Under a Sub-Advisory Agreement between the Sub-Advisor and the Investment
Manager, the Sub-Advisor provides the Fund with investment advice and portfolio
management relating to the Fund's investments in
11
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS September 30, 2000 (unaudited) continued
securities, subject to the overall supervision of the Investment Manager. As
compensation for its services provided pursuant to the Sub-Advisory Agreement,
the Investment Manager pays the Sub-Advisor compensation equal to 40% of its
monthly compensation.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager and
Sub-Advisor. The Fund has adopted a Plan of Distribution (the "Plan") pursuant
to Rule 12b-1 under the Act. The Plan provides that the Fund will pay the
Distributor a fee which is accrued daily and paid monthly at the following
annual rates: (i) Class A - up to 0.25% of the average daily net assets of
Class A; (ii) Class B - 1.0% of the lesser of: (a) the average daily aggregate
gross sales of the Class B shares since the inception of the Fund (not
including reinvestment of dividend or capital gain distributions) less the
average daily aggregate net asset value of the Class B shares redeemed since
the Fund's inception upon which a contingent deferred sales charge has been
imposed or waived; or (b) the average daily net assets of Class B; and (iii)
Class C - up to 1.0% of the average daily net assets of Class C.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund
pursuant to the Plan and contingent deferred sales charges paid by investors
upon redemption of Class B shares. Although there is no legal obligation for
the Fund to pay expenses incurred in excess of payments made to the Distributor
under the Plan and the proceeds of contingent deferred sales charges paid by
investors upon redemption of shares, if for any reason the Plan is terminated,
the Trustees will consider at that time the manner in which to treat such
expenses. The Distributor has advised the Fund that such excess amounts totaled
$22,964,623 at September 30, 2000.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the six months ended September 30, 2000, the distribution
fee was accrued for Class A shares and Class C shares at the annual rate of
0.25% and 1.0%, respectively.
The Distributor has informed the Fund that for the six months ended September
30, 2000, it received contingent deferred sales charges from certain
redemptions of the Fund's Class A shares, Class B shares
12
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS September 30, 2000 (unaudited) continued
and Class C shares of $69, $272,440 and $3,369, respectively and received
$59,385 in front-end sales charges from sales of the Fund's Class A shares. The
respective shareholders pay such charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities,
excluding short-term investments, for the six months ended September 30, 2000
aggregated $486,861,240 and $358,676,886, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager,
Distributor, and Sub-Advisor, is the Fund's transfer agent. At September 30,
2000, the Fund had transfer agent fees and expenses payable of approximately
$3,700.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
(unaudited)
SHARES AMOUNT SHARES AMOUNT
------------- -------------- --------- --------------
CLASS A SHARES
Sold ............................... 355,532 $ 7,261,200 529,435 $ 9,785,216
Reinvestment of distributions ...... 69,431 1,328,217 44,982 806,215
Redeemed ........................... (193,179) (3,908,315) (192,300) (3,391,567)
------------- -------------- --------- --------------
Net increase - Class A ............. 231,784 4,681,102 382,117 7,199,864
------------- -------------- --------- --------------
CLASS B SHARES
Sold ............................... 9,257,701 185,824,233 11,699,278 224,799,498
Reinvestment of distributions ...... 5,861,618 110,491,503 5,194,537 91,185,616
Redeemed ........................... (5,263,811) (106,269,415) (9,773,486) (182,289,872)
------------- -------------- ---------- --------------
Net increase - Class B ............. 9,855,508 190,046,321 7,120,329 133,695,242
------------- -------------- ---------- --------------
CLASS C SHARES
Sold ............................... 465,870 9,259,438 442,621 8,420,352
Reinvestment of distributions ...... 72,160 1,342,899 26,376 467,128
Redeemed ........................... (65,031) (1,288,525) (103,410) (1,923,844)
------------- -------------- ---------- --------------
Net increase - Class C ............. 472,999 9,313,812 365,587 6,963,636
------------- -------------- ---------- --------------
CLASS D SHARES
Sold ............................... 2,187,548 44,591,487 763,875 14,957,910
Reinvestment of distributions ...... 91,172 1,760,527 9,673 186,024
Redeemed ........................... (88,935) (1,820,465) (298,432) (5,557,462)
------------- -------------- ---------- --------------
Net increase - Class D ............. 2,189,785 44,531,549 475,116 9,586,472
------------- -------------- ---------- --------------
Net increase in Fund ............... 12,750,076 $ 248,572,784 8,343,149 $ 157,445,214
============= ============== ========== ==============
</TABLE>
13
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS September 30, 2000 (unaudited) continued
6. FEDERAL INCOME TAX STATUS
As of March 31, 2000, the Fund had temporary book/tax differences attributable
to capital loss deferrals on wash sales.
14
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
SEPTEMBER 30, 2000
------------------------
<S> <C>
(unaudited)
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ............... $22.32
------
Income (loss) from investment operations:
Net investment loss ............................... (0.04)
Net realized and unrealized gain (loss) ........... (1.12)
------
Total income (loss) from investment operations ..... (1.16)
------
Less distributions from net realized gain .......... (1.97)
------
Net asset value, end of period ..................... $19.19
======
TOTAL RETURN+ ...................................... (5.16)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ........................................... 1.13 %(2)(3)
Net investment loss ................................ (0.39)%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ............ $17,298
Portfolio turnover rate ............................ 27 %(1)
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
--------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ............... $17.34 $15.17 $17.58
------- ------- -------
Income (loss) from investment operations:
Net investment loss ............................... (0.09) (0.05) (0.04)
Net realized and unrealized gain (loss) ........... 6.89 2.55 2.28
------- ------- -------
Total income (loss) from investment operations ..... 6.80 2.50 2.24
------- ------- -------
Less distributions from net realized gain .......... (1.82) (0.33) (4.65)
------- ------- -------
Net asset value, end of period ..................... $22.32 $17.34 $15.17
======= ======= =======
TOTAL RETURN+ ...................................... 42.32% 16.87% 13.84%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ........................................... 1.13%(3) 1.19 %(3) 1.33%(2)
Net investment loss ................................ (0.48)%(3) (0.29)%(3) (0.34)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ............ $14,947 $4,987 $647
Portfolio turnover rate ............................ 81% 113% 77%
</TABLE>
-------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
15
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
SEPTEMBER 30, 2000++
------------------------
<S> <C>
(unaudited)
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $22.04
----------
Income (loss) from investment operations:
Net investment loss .............................. (0.07)
Net realized and unrealized gain (loss) .......... (1.11)
----------
Total income (loss) from investment
operations ........................................ (1.18)
----------
Less distributions from net realized gain ......... (1.97)
----------
Net asset value, end of period .................... $18.89
==========
TOTAL RETURN+ .................................... (5.33)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 1.50 %(2)(3)
Net investment loss ............................... (0.76)%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $1,323,257
Portfolio turnover rate ........................... 27 %(1)
<CAPTION>
FOR THE YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------
2000++ 1999++ 1998*++ 1997 1996
------------------ ------------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $17.20 $15.12 $15.09 $15.09 12.11
---------- -------- -------- -------- -----
Income (loss) from investment operations:
Net investment loss .............................. (0.15) (0.11) (0.11) (0.12) (0.11)
Net realized and unrealized gain (loss) .......... 6.81 2.52 6.07 1.39 3.09
---------- -------- -------- -------- -----
Total income (loss) from investment
operations ........................................ 6.66 2.41 5.96 1.27 2.98
---------- -------- -------- -------- -----
Less distributions from net realized gain ......... (1.82) (0.33) (5.93) (1.27) -
---------- -------- -------- -------- -----
Net asset value, end of period .................... $22.04 $17.20 $15.12 $15.09 15.09
========== ======== ======== ======== =====
TOTAL RETURN+ ..................................... 41.82% 16.32% 42.61% 8.31% 24.69%
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 1.48%(3) 1.60%(1) 1.64% 1.73% 1.82%
Net investment loss ............................... (0.83)%(3) (0.70)%(1) (0.64)% (0.75)% (0.72)%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $1,326,846 $913,060 $893,111 $727,528 $767,170
Portfolio turnover rate ........................... 81% 113% 77% 45% 48%
</TABLE>
--------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
16
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
SEPTEMBER 30, 2000
------------------------
<S> <C>
(unaudited)
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ................... $21.80
--------
Income (loss) from investment operations:
Net investment loss ................................... (0.11)
Net realized and unrealized gain (loss) ............... (1.09)
--------
Total income (loss) from investment operations ......... (1.20)
--------
Less distributions from net realized gain .............. (1.97)
--------
Net asset value, end of period ......................... $18.63
========
TOTAL RETURN+ ......................................... (5.54)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................................... 1.88 %(2)(3)
Net investment loss .................................... (1.14)%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ................ $18,935
Portfolio turnover rate ................................ 27 %(1)
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
--------------------------------------------------------
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ................... $17.09 $15.08 $17.58
------- ------- -------
Income (loss) from investment operations:
Net investment loss ................................... (0.23) (0.16) (0.11)
Net realized and unrealized gain (loss) ............... 6.76 2.50 2.26
------- ------- -------
Total income (loss) from investment operations ......... 6.53 2.34 2.15
------- ------- -------
Less distributions from net realized gain .............. (1.82) (0.33) (4.65)
------- ------- -------
Net asset value, end of period ......................... $21.80 $17.09 $15.08
======= ======= =======
TOTAL RETURN+ .......................................... 41.29% 15.90% 13.33%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................................... 1.89%(3) 1.94%(3) 2.02%(2)
Net investment loss .................................... (1.24)%(3) (1.04)%(3) (1.00)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ................ $11,848 $3,041 $422
Portfolio turnover rate ................................ 81% 113% 77%
</TABLE>
--------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
17
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
SEPTEMBER 30, 2000
------------------------
<S> <C>
(unaudited)
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ................... $22.49
-------
Income (loss) from investment operations:
Net investment loss ................................... (0.01)
Net realized and unrealized gain (loss) ............... (1.14)
-------
Total income (loss) from investment operations ......... (1.15)
-------
Less distributions from net realized gain .............. (1.97)
-------
Net asset value, end of period ......................... $19.37
=======
TOTAL RETURN+ .......................................... (5.08)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................................... 0.88%(2)(3)
Net investment loss .................................... (0.14)%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ................ 53,368
Portfolio turnover rate ................................ 27 %(1)
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
--------------------------------------------------------
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ................... $17.41 $15.21 $17.58
------- ------- -------
Income (loss) from investment operations:
Net investment loss ................................... (0.04) (0.01) (0.08)
Net realized and unrealized gain (loss) ............... 6.94 2.54 2.36
------- ------- -------
Total income (loss) from investment operations ......... 6.90 2.53 2.28
------- ------- -------
Less distributions from net realized gain .............. (1.82) (0.33) (4.65)
------- ------- -------
Net asset value, end of period ......................... $22.49 $17.41 $15.21
======= ======= =======
TOTAL RETURN+ .......................................... 42.75 % 17.02 % 14.09 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................................... 0.89 %(3) 0.94 %(3) 1.43 %(2)
Net investment loss .................................... (0.24)%(3) (0.04)%(3) (0.78)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ................ $12,702 $1,563 $ 11
Portfolio turnover rate ................................ 81 % 113 % 77 %
</TABLE>
--------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
18
<PAGE>
MORGAN STANLEY DEAN WITTER GROWTH FUND
CHANGE IN INDEPENDENT ACCOUNTANTS
On July 1, 2000 PricewaterhouseCoopers LLP resigned as independent accountants
of the Fund.
The reports of PricewaterhouseCoopers LLP on the financial statements of the
Fund for the past two fiscal years contained no adverse opinion or disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope or
accounting principle.
In connection with its audits for the two most recent fiscal years and through
July 1, 2000, there have been no disagreements with PricewaterhouseCoopers LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements if not resolved
to the satisfaction of PricewaterhouseCoopers LLP would have caused them to
make reference thereto in their report on the financial statements for such
years.
The Fund, with the approval of its Board of Trustees and its Audit Committee,
engaged Deloitte & Touche LLP as its new independent accountants as of July 1,
2000.
19
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
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
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
SUB-ADVISOR
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
The 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 Distributors Inc., member NASD.
MORGAN STANLEY
DEAN WITTER
GROWTH FUND
[GRAPHIC OMITTED]
SEMIANNUAL REPORT
September 30, 2000
