<PAGE>
Dean Witter Global Dividend Growth Securities
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
During the six-month period ended September 30, 1994, worldwide economic
activity accelerated from the slower pace witnessed earlier in 1994. While
stronger economic growth resulted in higher interest rates in many countries,
the global equity markets, in general, were stronger.
Against this backdrop, Dean Witter Global Dividend Growth Securities
provided a total return(1) of 7.12% for the six-month period ended September 30,
1994. This compares favorably to a total return of 4.35% for the Morgan Stanley
Capital International World Index, which measures performance for a diverse
range of global stock markets. We believe that the Fund's outperformance of the
world index was largely accounted for by the consistent use of our stringent,
proprietary screening processes. In addition, we are convinced that the
allocation of assets among the countries in which the Fund is invested is also
responsible for the performance. As of September 30, 1994, nearly 100 percent of
the Fund's assets were committed to 104 equity issues in twelve countries. The
Fund's three largest country weightings were the United States (29.1 percent),
Japan (24.6 percent) and the United Kingdom (12.2 percent).
PORTFOLIO ACTIVITY
One portfolio holding was sold during the semiannual reporting period. The
shares of Ifil SpA (Italy) were liquidated because they no longer appeared
attractive under the screening process. Issues purchased during the reporting
period were Tenneco (U.S.), National Westminster Bank PLC (U.K.), Wellcome PLC
(U.K.), Cheung Kong Holdings Ltd. (Hong Kong), International Nederlande Group NV
(The Netherlands) and Bennetton Group SpA (Italy).
LOOKING AHEAD
Looking ahead, we are convinced that sensitivity to factors which would
dictate the need for changing asset allocations among countries will be the key
to future performance. We believe that the outlook for the economies and the
securities markets in most of the world's major countries is favorable over the
long term. We also remain strongly convinced that the stocks of
well-established, international companies will perform relatively well over the
longer term. Consequently, we are confident, patient and relatively fully
invested. Additionally, we will continue to rely on the disciplined use of the
Fund's screening process to aid us in the constant search for high quality
dividend paying stocks to consider for adding to the portfolio.
We appreciate your support of Dean Witter Global Dividend Growth Securities
and look forward to continuing to serve your investment needs in the future.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
(1) TOTAL RETURN DOES NOT REFLECT ANY DEDUCTION FOR THE MAXIMUM APPLICABLE
CONTINGENT DEFERRED SALES CHARGE.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ ----------------
<C> <S> <C>
COMMON, PREFERRED STOCKS AND RIGHTS (99.5%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
3,470,000 Pioneer International, Ltd........................................................... $ 8,572,975
----------------
MULTI - INDUSTRY
3,722,000 Southcorp Holdings, Ltd.............................................................. 8,369,617
----------------
PAPER & FOREST PRODUCTS
1,259,600 Amcor, Ltd........................................................................... 8,273,728
----------------
TOTAL AUSTRALIA...................................................................... 25,216,320
----------------
CANADA (3.0%)
OIL RELATED
381,800 Imperial Oil, Ltd.................................................................... 12,198,878
567,200 IPL Energy, Inc...................................................................... 12,205,008
936,300 Transcanada Pipelines, Ltd........................................................... 12,472,139
----------------
36,876,025
----------------
TELECOMMUNICATIONS
355,000 BCE, Inc............................................................................. 12,764,550
----------------
TOTAL CANADA......................................................................... 49,640,575
----------------
FRANCE (7.9%)
FINANCIAL SERVICES
36,600 Societe Eurafrance S.A............................................................... 12,926,127
----------------
FOODS & BEVERAGES
93,100 Eridania Beghin-Say S.A.............................................................. 13,540,023
49,450 Saint-Louis.......................................................................... 13,643,769
----------------
27,183,792
----------------
HOUSEHOLD PRODUCTS
109,000 BIC.................................................................................. 13,540,629
----------------
INTERNATIONAL OIL - INTEGRATED
180,400 Societe Nationale Elf Aquitaine...................................................... 12,981,612
216,900 Total S.A. (B Shares)................................................................ 12,782,260
----------------
25,763,872
----------------
MULTI - INDUSTRY
62,950 Compagnie Generale d'Industrie et de Participations.................................. 12,838,667
31,220 Financiere et Industrielle Gaz et Eaux............................................... 11,203,420
31,120 Financiere et Industrielle Gaz et Eaux (Rights)...................................... 578,413
283,843 Worms et Compagnie................................................................... 13,276,502
----------------
37,897,002
----------------
OIL RELATED
88,780 Esso Francaise S.A................................................................... 12,272,880
----------------
TOTAL FRANCE......................................................................... 129,584,302
----------------
GERMANY (6.6%)
CHEMICALS
50,000 Bayer AG............................................................................. 11,296,057
----------------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- HEALTH & PERSONAL CARE ---------------
<C> <S> <C>
35,000 Douglas Holding AG.......................................................... $ 11,402,715
---------------
MACHINERY - DIVERSIFIED
50,000 IWKA AG..................................................................... 10,665,805
---------------
MULTI - INDUSTRY
39,300 Preussag AG................................................................. 11,246,354
36,300 Viag AG..................................................................... 11,169,231
---------------
22,415,585
---------------
OFFICE EQUIPMENT
48,100 Herlitz AG.................................................................. 10,415,966
---------------
OIL RELATED
38,150 RWE AG...................................................................... 11,141,674
---------------
RETAIL - DEPARTMENT STORES
29,400 Karstadt AG................................................................. 11,402,715
---------------
TEXTILES - APPAREL
13,000 Hugo Boss AG (Preferred).................................................... 7,882,353
---------------
UTILITIES - ELECTRIC
33,800 Veba AG..................................................................... 11,247,731
---------------
TOTAL GERMANY............................................................... 107,870,601
---------------
HONG KONG (3.1%)
BANKING
866,600 HSBC Holdings, Inc.......................................................... 9,673,127
---------------
CONGLOMERATES
1,231,000 Swire Pacific, Ltd. (A Shares).............................................. 9,638,346
---------------
ELECTRONICS
3,715,000 Elec & Eltek International Holdings......................................... 449,531
---------------
REAL ESTATE
1,958,000 Cheung Kong Holdings, Ltd................................................... 9,527,734
1,922,000 Realty Development Corp. (Class A).......................................... 8,954,575
---------------
18,482,309
---------------
TEXTILES - APPAREL
4,769,000 Laws International Holdings, Ltd............................................ 1,178,826
---------------
UTILITIES - ELECTRIC
3,134,000 Hong Kong Electric Holdings................................................. 10,281,726
---------------
TOTAL HONG KONG............................................................. 49,703,865
---------------
ITALY (2.6%)
BANKING
3,058,000 Banco Ambrosiano Veneto..................................................... 8,615,883
---------------
NATURAL GAS
2,418,000 Italgas..................................................................... 8,240,481
---------------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- TELECOMMUNICATIONS ---------------
<C> <S> <C>
1,137,000 Sirti SpA................................................................... $ 8,396,274
1,014,800 Telecom Italia SpA.......................................................... 2,879,402
3,664,000 Telecom Italia SpA.......................................................... 8,750,659
---------------
20,026,335
---------------
TEXTILES
350,000 Benetton Group SpA.......................................................... 4,706,171
---------------
TOTAL ITALY................................................................. 41,588,870
---------------
JAPAN (24.6%)
AUTOMOTIVE
1,437,000 Honda Motor Co., Ltd........................................................ 24,083,799
1,147,000 Toyota Motor Corp........................................................... 23,650,686
---------------
47,734,485
---------------
BUILDING & CONSTRUCTION
3,815,000 Fujita Corp................................................................. 23,521,635
---------------
BUILDING MATERIALS
3,548,000 Sankyo Aluminium (SP.)...................................................... 23,353,012
---------------
CHEMICALS
2,266,000 Sekisui Chemical Co......................................................... 23,937,430
---------------
COMPUTER SERVICES
1,773,000 AT&T Global Info Solutions.................................................. 24,132,250
---------------
ELECTRONICS
2,410,000 Hitachi, Ltd................................................................ 23,402,336
328,000 Kyocera Corp................................................................ 23,588,014
396,500 Sony Corp................................................................... 23,197,969
539,000 TDK Corp.................................................................... 24,144,134
---------------
94,332,453
---------------
ENTERTAINMENT & LEISURE TIME
2,122,000 Mizuno Corp................................................................. 23,493,956
---------------
FOODS & BEVERAGES
1,122,000 House Food Industry Corp.................................................... 23,363,128
2,954,000 Snow Brand Milk Products.................................................... 23,523,982
---------------
46,887,110
---------------
MULTI - INDUSTRY
3,731,000 Furukawa Co., Ltd........................................................... 23,344,804
---------------
PHARMACEUTICALS
1,229,000 Taisho Pharmaceutical Co., Ltd.............................................. 23,593,804
1,981,000 Takeda Chemical Industries.................................................. 23,341,392
---------------
46,935,196
---------------
TRANSPORTATION
1,906,000 Yamato Transport Co., Ltd................................................... 24,006,501
---------------
TOTAL JAPAN................................................................. 401,678,832
---------------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- MALAYSIA (2.0%) ---------------
<C> <S> <C>
BANKING
717,000 AMMB Holdings Berhad........................................................ $ 7,833,008
---------------
BUILDING & CONSTRUCTION
612,000 Cement Industries of Malaysia............................................... 1,981,896
1,133,000 Malayan Cement Berhad....................................................... 2,077,682
1,480,000 United Engineers Malaysia Berhad............................................ 8,315,256
---------------
12,374,834
---------------
CONGLOMERATES
2,808,000 Sime Darby Berhad........................................................... 8,107,374
---------------
FOODS & BEVERAGES
331,000 Nestle Malaysia Berhad...................................................... 2,040,499
---------------
OIL RELATED
692,000 Esso Malaysia Berhad........................................................ 1,997,972
---------------
TOTAL MALAYSIA.............................................................. 32,353,687
---------------
NETHERLANDS (2.9%)
BANKING
211,000 ABN-AMRO Holdings........................................................... 7,074,326
---------------
BUILDING & CONSTRUCTION
102,000 Koninklijke Volker Stevin NV................................................ 5,150,326
---------------
FINANCIAL SERVICES
161,300 International Nederlande Group NV........................................... 6,981,072
---------------
INSURANCE
124,100 Aegon NV.................................................................... 7,175,729
170,700 Fortis Amev NV.............................................................. 6,865,826
---------------
14,041,555
---------------
INTERNATIONAL OIL - INTEGRATED
65,900 Royal Dutch Petroleum Co.................................................... 7,118,980
---------------
TEXTILES
134,900 Gamma Holding NV............................................................ 7,185,221
---------------
TOTAL NETHERLANDS........................................................... 47,551,480
---------------
SWITZERLAND (4.0%)
BANKING
56,800 Schweizerische Bankverein AG................................................ 16,274,058
---------------
CHEMICALS
28,550 Ciba-Geigy AG............................................................... 16,182,186
---------------
FOODS & BEVERAGES
17,450 Nestle AG................................................................... 15,882,163
---------------
MULTI - INDUSTRY
18,570 Brown Boveri & Compagnie AG................................................. 16,048,505
---------------
TOTAL SWITZERLAND........................................................... 64,386,912
---------------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- UNITED KINGDOM (12.2%) ---------------
<C> <S> <C>
BANKING
3,192,000 Hambros PLC................................................................. $ 13,011,045
1,824,000 National Westminster Bank PLC............................................... 14,019,654
---------------
27,030,699
---------------
BREWERS
1,663,000 Bass PLC.................................................................... 13,491,564
1,745,000 Scottish & Newcastle Breweries PLC.......................................... 13,315,950
---------------
26,807,514
---------------
FOODS & BEVERAGES
5,050,000 Hazlewood Foods PLC......................................................... 9,653,979
4,916,000 Hillsdown Holdings PLC...................................................... 13,436,544
---------------
23,090,523
---------------
HEALTH & PERSONAL CARE
1,331,000 Wellcome PLC................................................................ 13,636,962
---------------
METALS & MINING
1,076,000 Charter PLC................................................................. 13,089,787
---------------
MULTI - INDUSTRY
3,765,000 Hanson Trust PLC............................................................ 13,710,886
---------------
NATURAL GAS
2,948,000 British Gas PLC............................................................. 13,879,485
---------------
RETAIL - MERCHANDISING
3,868,000 Tesco PLC................................................................... 14,391,530
---------------
TELECOMMUNICATIONS
2,371,500 British Telecom PLC......................................................... 13,638,108
---------------
UTILITIES - ELECTRIC
1,088,000 South Wales Electricity PLC................................................. 13,063,877
---------------
UTILITIES - WATER
1,621,000 Severn Trent Water PLC...................................................... 13,995,963
1,340,000 Welsh Water................................................................. 13,612,734
---------------
27,608,697
---------------
TOTAL UNITED KINGDOM........................................................ 199,948,068
---------------
UNITED STATES (29.1%)
AEROSPACE & DEFENSE
754,200 Northrop - Grumman Corp..................................................... 34,127,550
---------------
BANK HOLDING COMPANIES
508,400 Bankers Trust New York Corp................................................. 33,935,700
---------------
BANKING
756,000 BankAmerica Corp............................................................ 33,358,500
---------------
CHEMICALS
325,000 American Cyanamid Co........................................................ 32,337,500
431,900 Monsanto Co................................................................. 34,713,963
---------------
67,051,463
---------------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- CONGLOMERATES ---------------
<C> <S> <C>
615,800 Minnesota Mining & Manufacturing Co......................................... $ 34,022,950
776,500 Tenneco, Inc................................................................ 34,263,063
---------------
68,286,013
---------------
HEALTH & PERSONAL CARE
586,000 Bristol Myers Squibb Co..................................................... 33,621,750
---------------
INTERNATIONAL OIL - INTEGRATED
825,000 Chevron Corp................................................................ 34,340,625
---------------
METALS & BASIC MATERIALS
530,000 Phelps Dodge Corp........................................................... 32,926,250
---------------
RETAIL
1,945,000 K-Mart Corp................................................................. 34,766,875
---------------
RETAIL - DRUG STORES
1,664,300 Rite Aid Corp............................................................... 34,534,225
---------------
TOBACCO
563,000 Philip Morris Cos., Inc..................................................... 34,413,375
---------------
UTILITIES - ELECTRIC
1,525,500 Pacific Gas & Electric Co................................................... 34,705,125
---------------
TOTAL UNITED STATES......................................................... 476,067,451
---------------
TOTAL COMMON, PREFERRED STOCKS AND RIGHTS (IDENTIFIED COST
$1,538,356,647)........................................................... 1,625,590,963
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- ------------
<C> <S> <C>
SHORT-TERM INVESTMENT (0.8%)
COMMERCIAL PAPER (A) (0.8%)
UNITED STATES (0.8%)
FINANCE
$ 12,800 General Electric Capital Corp. 4.601% due 10/03/94 (Amortized Cost $12,796,729)....12,796,729
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $1,551,153,376)(B)........... 100.3% 1,638,387,692
LIABILITIES IN EXCESS OF OTHER ASSETS........................... (0.3) (4,541,710)
---------- ---------------
NET ASSETS...................................................... 100.0% $ 1,633,845,982
---------- ---------------
---------- ---------------
<FN>
- ----------------
(A) COMMERCIAL PAPER WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATE
SHOWN HAS BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $1,552,068,168; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $126,101,764 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $39,782,240, RESULTING IN NET UNREALIZED
APPRECIATION OF $86,319,524.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT SEPTEMBER 30, 1994:
<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS EXCHANGE DELIVERY APPRECIATION/
TO RECEIVE FOR DATE (DEPRECIATION)
- ---------------- -------------- --------- ---------------
<S> <C> <C> <C>
L 215,046 US$ 339,084 10/03/94 $ 667
Y 66,602,867 US$ 678,582 10/03/94 (2,068)
Y 227,115,107 US$ 2,308,315 10/03/94 (1,407)
MYR 45,776 US$ 17,916 10/03/94 (56)
NLG 54,189 US$ 31,206 10/03/94 65
CAD 264,338 US$ 197,149 10/04/94 (162)
DEM 1,124,094 US$ 727,522 10/04/94 (894)
L 188,847 US$ 298,152 10/04/94 208
US$ 189,236 HKD 24,490 10/04/94 0
US$ 1,846,389 HKD 238,907 10/04/94 (46)
Y 178,387,287 US$ 1,809,202 10/04/94 2,757
MYR 469,291 US$ 182,924 10/04/94 178
CHF 735,451 US$ 573,675 10/05/94 (1,072)
DEM 667,794 US$ 433,211 10/05/94 (1,540)
DEM 658,383 US$ 424,681 10/05/94 906
L 722,107 US$ 1,139,630 10/05/94 1,228
Y 62,836,103 US$ 635,350 10/05/94 2,904
NLG 127,680 US$ 73,740 10/05/94 (60)
L 445,537 US$ 703,370 10/06/94 535
MYR 314,922 US$ 122,849 10/06/94 24
CHF 1,544,834 US$ 1,202,673 10/07/94 94
L 246,976 US$ 388,987 10/07/94 1,210
L 229,854 US$ 362,158 10/07/94 988
MYR 580,543 US$ 226,704 10/07/94 (195)
L 866,293 US$ 1,369,002 10/11/94 (347)
MYR 213,519 US$ 83,338 10/11/94 (29)
L 278,215 US$ 439,691 10/12/94 (139)
L 159,269 US$ 251,725 10/13/94 (96)
L 820,617 US$ 1,294,358 10/14/94 2,134
FRF 1,328,560 US$ 251,027 10/28/94 561
FRF 3,415,148 US$ 648,405 10/28/94 (1,682)
FRF 751,897 US$ 142,583 10/28/94 (197)
FRF 3,762,302 US$ 710,861 10/28/94 1,602
FRF 4,003,602 US$ 759,409 10/28/94 (1,251)
US$ 1,990,316 HKD 257,613 10/31/94 33
ITL481,407,107 US$ 307,579 10/31/94 1,739
ITL 3,381,686 US$ 2,169 10/31/94 4
ITL226,535,710 US$ 145,615 10/31/94 (59)
ITL 3,338,288 US$ 2,138 10/31/94 7
US$ 6,119,435 ITL 3,910 10/31/94 (22)
US$ 133,071,540 ITL 84,948 10/31/94 (554)
-------
Net Unrealized
Appreciation*............ $ 5,968
-------
-------
<FN>
* Includes aggregate gross unrealized appreciation of
$17,844 and aggregate gross unrealized depreciation of
$11,876 resulting in net unrealized appreciation of
$5,968.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION SEPTEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------- -------------- -----------
<S> <C> <C>
Aerospace & Defense............................... $ 34,127,550 2.1%
Automotive........................................ 47,734,485 2.9
Bank Holding Companies............................ 33,935,700 2.1
Banking........................................... 109,859,603 6.7
Brewers........................................... 26,807,514 1.6
Building & Construction........................... 49,619,771 3.0
Building Materials................................ 23,353,010 1.4
Chemicals......................................... 118,467,136 7.3
Computer Services................................. 24,132,250 1.5
Conglomerates..................................... 86,031,734 5.3
Electronics....................................... 94,781,985 5.8
Entertainment & Leisure Time...................... 23,493,956 1.4
Finance........................................... 12,796,729 0.8
Financial Services................................ 19,907,199 1.2
Foods & Beverages................................. 115,084,089 7.1
Health & Personal Care............................ 58,661,427 3.6
Household Products................................ 13,540,629 0.8
Insurance......................................... 14,041,555 0.9
International Oil - Integrated.................... 67,223,477 4.1
Machinery - Diversified........................... 10,665,805 0.7
Metals & Basic Materials.......................... 32,926,250 2.0
Metals & Mining................................... 13,089,787 0.8
Multi-Industry.................................... 121,786,398 7.5
Natural Gas....................................... 22,119,967 1.4
Office Equipment.................................. 10,415,966 0.6
Oil Related....................................... 62,288,549 3.8
Paper & Forest Products........................... 8,273,728 0.5
Pharmaceutical.................................... 46,935,196 2.9
Real Estate....................................... 18,482,309 1.1
Retail............................................ 34,766,875 2.1
Retail - Department Stores........................ 11,402,715 0.7
Retail - Drug Stores.............................. 34,534,225 2.1
Retail - Merchandising............................ 14,391,530 0.9
Telecommunications................................ 46,428,994 2.8
Textiles.......................................... 11,891,392 0.7
Textiles - Apparel................................ 9,061,178 0.6
Tobacco........................................... 34,413,375 2.1
Transportation.................................... 24,006,501 1.5
Utilities - Electric.............................. 69,298,456 4.2
Utilities - Water................................. 27,608,697 1.7
-------------- -----------
$1,638,387,692 100.3%
-------------- -----------
-------------- -----------
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- --------------------------------------------------
<S> <C> <C>
Common Stocks..................................... $1,617,130,198 99.0%
Preferred Stocks.................................. 7,882,352 0.5
Rights............................................ 578,413 0.0
Short-Term Investment............................. 12,796,729 0.8
-------------- -----------
$1,638,387,692 100.3%
-------------- -----------
-------------- -----------
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $1,551,153,376) (Note
1).................................... $ 1,638,387,692
Receivable for:
Shares of beneficial interest sold.... 16,415,780
Investments sold (Note 4)............. 7,276,370
Dividends............................. 6,061,624
Foreign withholding taxes reclaimed... 2,110,902
Interest.............................. 23,679
Deferred organizational expenses (Note
1).................................... 135,072
Prepaid expenses and other assets....... 70,678
---------------
TOTAL ASSETS.................... 1,670,481,797
---------------
LIABILITIES:
Payable for:
Investments purchased (Note 4)........ 28,622,699
Plan of distribution fee (Note 3)..... 1,214,553
Investment management fee (Note 2).... 992,363
Shares of beneficial interest
repurchased......................... 973,329
Payable to bank......................... 4,177,746
Accrued expenses (Note 4)............... 655,125
---------------
TOTAL LIABILITIES............... 36,635,815
---------------
NET ASSETS:
Paid-in-capital......................... 1,522,658,747
Net unrealized appreciation............. 87,370,166
Accumulated undistributed net investment
income................................ 3,414,134
Accumulated undistributed net realized
gains................................. 20,402,935
---------------
NET ASSETS...................... $ 1,633,845,982
---------------
---------------
NET ASSET VALUE PER SHARE, 143,189,392
shares outstanding (unlimited shares
authorized of $.01 par value).........
$11.41
---------------
---------------
</TABLE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 1994 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Dividends (net of $1,648,732 foreign
withholding tax)..................... $ 26,712,126
Interest............................... 323,403
------------
TOTAL INCOME....................... 27,035,529
------------
EXPENSES
Plan of distribution fee (Note 3)...... 6,382,624
Investment management fee (Note 2)..... 5,089,667
Transfer agent fees and expenses (Note
4)................................... 882,700
Custodian fees......................... 596,160
Registration fees...................... 192,382
Shareholder reports and notices........ 74,418
Professional fees...................... 32,688
Organizational expenses (Note 1)....... 18,151
Trustees' fees and expenses (Note 4)... 11,106
Other.................................. 6,032
------------
TOTAL EXPENSES..................... 13,285,928
------------
NET INVESTMENT INCOME............ 13,749,601
------------
NET REALIZED AND UNREALIZED GAIN (Note 1):
Net realized gain on:
Investments.......................... 21,244,596
Foreign exchange transactions........ 72,990
------------
21,317,586
------------
Net change in unrealized appreciation
on:
Investments.......................... 51,648,176
Translation of other assets and
liabilities denominated in foreign
currencies......................... 111,172
------------
51,759,348
------------
NET GAIN........................... 73,076,934
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $ 86,826,535
------------
------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE PERIOD
ENDED JUNE 30, 1993
SEPTEMBER 30, 1994 THROUGH
(UNAUDITED) MARCH 31, 1994 (NOTE 1)
------------------- -----------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income........................................... $ 13,749,601 $ 3,904,853
Net realized gain............................................... 21,317,586 11,293,715
Net change in unrealized appreciation........................... 51,759,348 35,610,818
------------------- -----------------------
Net increase in net assets resulting from operations.......... 86,826,535 50,809,386
------------------- -----------------------
Dividends and distributions to shareholders from:
Net investment income........................................... (10,335,467) (3,730,225)
Net realized gains.............................................. (9,844,600) (2,556,049)
------------------- -----------------------
Total dividends and distributions............................. (20,180,067) (6,286,274)
------------------- -----------------------
Net increase from transactions in shares of beneficial interest
(Note 5)...................................................... 445,959,213 1,076,617,189
------------------- -----------------------
Total increase................................................ 512,605,681 1,121,140,301
NET ASSETS:
Beginning of period............................................... 1,121,240,301 100,000
------------------- -----------------------
END OF PERIOD (including undistributed net investment income of
$3,414,134 and $0, respectively)................................. $ 1,633,845,982 $ 1,121,240,301
------------------- -----------------------
------------------- -----------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter Global Dividend Growth
Securities (the "Fund") is registered under the Investment Company Act of 1940,
as amended (the "Act"), as a diversified, open-end management investment
company. The Fund was organized as a Massachusetts business trust on January 12,
1993 and had no operations other than those relating to organizational matters
and the issuance of 10,000 shares of beneficial interest for $100,000 to Dean
Witter InterCapital Inc. (the "Investment Manager") to effect the Fund's initial
capitalization. The Fund commenced operations on June 30, 1993.
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 or other domestic or foreign stock
exchanges is valued at its latest sale price on that exchange 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 securities are traded on
more than one exchange; the securities are valued on the exchange designated
as the primary market by the Trustees); (2) all other portfolio securities
for which over-the-counter market quotations are readily available are
valued at the latest available bid price prior to the time of valuation; (3)
when market quotations are not readily available, including circumstances
under which it is determined by the Investment Manager that sale and 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 securities having a maturity date of more
than sixty days are valued on a mark-to-market basis, that is, at prices
based on market quotations for securities of a similar type, yield, quality
and maturity, 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 on the identified cost
method. Discounts on securities purchased are amortized over the life of the
respective securities. The Fund does not amortize premiums on securities
purchased. Dividend income and other distributions are recorded on the
ex-dividend date except certain dividends from foreign securities which are
recorded as soon as the Fund is informed after the ex-dividend date.
Interest income is accrued daily.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward contracts
are translated at the exchange rates prevailing at the end of the period;
and (2) purchases, sales, income and expenses are translated at the exchange
rate prevailing on the respective dates of such transactions. The resultant
exchange gains and losses are included in the Statement of Operations.
Pursuant to U.S. Federal income tax regulations, certain foreign exchange
gains/losses included in realized and unrealized gain/loss are included in
or are a reduction of ordinary income for federal income tax purposes. The
Fund does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the changes in the
market prices of the securities.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Fund may enter into
forward foreign currency exchange contracts as a hedge against fluctuations
in foreign exchange rates. Forward contracts are valued daily at the
appropriate exchange rates and any resulting unrealized currency
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
gains or losses are reflected in the Fund's accounts. The Fund records
realized gains or losses on delivery of the currency.
E. 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.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
G. ORGANIZATIONAL EXPENSES -- The Fund's Investment Manager paid the
organizational expenses of approximately $184,000 which have been reimbursed
for the full amount thereof such expenses have been deferred and are being
amortized by the Fund on the straight line method over a period not to
exceed five years from the commencement of operations.
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement with Dean Witter InterCapital Inc., the Fund pays its Investment
Manager a management fee, accrued daily and payable monthly, by applying the
annual rate of 0.75% to the net assets of the Fund determined as of the close of
each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION -- Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager.
The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act pursuant to which the Fund pays the Distributor compensation,
accrued daily and payable monthly, at an annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
Fund's inception (not including reinvestment of dividend or capital gain
distributions) less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services provided and the expenses borne by
it and others in the distribution of the Fund's shares, including the payment of
commissions for sales of the Fund's shares and incentive compensation to, and
expenses of, the account executives of Dean Witter Reynolds Inc., an affiliate
of the Investment Manager and Distributor, and other employees or selected
dealers who engage in or support distribution of the Fund's shares or who
service shareholder accounts, including overhead and telephone expenses,
printing and distribu-
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
tion of prospectuses and reports used in connection with the offering of the
Fund's shares to other than current shareholders and preparation, printing and
distribution of sales literature and advertising materials. In addition, the
Distributor may be compensated under the Plan for its opportunity costs in
advancing such amounts, which compensation would be in the form of a carrying
charge on any unreimbursed expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred
by the Distributor but not yet recovered, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.
The Distributor has informed the Fund that for the six months ended
September 30, 1994, it received approximately $1,194,000 in contingent deferred
sales charges from redemptions of the Fund's shares. The Fund's 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, 1994 aggregated $590,419,364
and $156,979,537, respectively. At September 30, 1994, the Fund's payable and
receivable for investments purchased and sold included unsettled trades with
Dean Witter Reynolds Inc. of $3,222,916 and $1,264,388, respectively.
For the six months ended September 30, 1994, the Fund incurred brokerage
commissions of $99,950 with Dean Witter Reynolds Inc. for portfolio transactions
executed on behalf of the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At September 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $166,000.
Effective January 1, 1994, the Fund adopted an unfunded noncontributory
defined benefit pension plan covering all independent Trustees of the Fund who
will have served as an independent Trustee for at least five years at the time
of retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension costs for
the six months ended September 30, 1994, included in Trustees' fees and expenses
in the Statement of Operations amounted to $6,017. At September 30, 1994, the
Fund had an accrued pension liability of $9,017 which is included in accrued
expenses in the Statement of Assets and Liabilities.
5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE PERIOD JUNE 30, 1993*
SEPTEMBER 30, 1994 THROUGH MARCH 31, 1994
------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- ---------------- -------------- ------------------
<S> <C> <C> <C> <C>
Sold.................................... 44,394,078 $ 501,441,369 110,736,170 $ 1,151,760,086
Reinvestment of dividends and
distributions.......................... 1,671,217 18,503,606 537,619 5,736,639
------------- ---------------- -------------- ------------------
46,065,295 519,944,975 111,273,789 1,157,496,725
Repurchased............................. (6,593,127) (73,985,762) (7,566,565) (80,879,536)
------------- ---------------- -------------- ------------------
Net increase............................ 39,472,168 $ 445,959,213 103,707,224 $ 1,076,617,189
------------- ---------------- -------------- ------------------
------------- ---------------- -------------- ------------------
<FN>
- ------------
* COMMENCEMENT OF OPERATIONS.
</TABLE>
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. FEDERAL INCOME TAX STATUS -- Foreign currency losses incurred after October
31 ("Post-October" foreign currency losses) within the taxable year are deemed
to arise on the first business day of the Fund's next taxable year. The Fund
incurred and will elect to defer foreign currency losses of approximately
$207,000 during fiscal 1994.
At March 31, 1994, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and Post-October foreign
currency loss deferrals.
7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK -- As of September 30,
1994, the Fund had outstanding forward foreign currency exchange contracts
("forward contracts") as a hedge against changes in foreign exchange rates.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE PERIOD
ENDED SEPTEMBER 30, JUNE 30, 1993*
1994 THROUGH
(UNAUDITED) MARCH 31, 1994
--------------------- ---------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period......... $ 10.81 $ 10.00
----------- -----------
Net investment income........................ 0.10 0.05
Net realized and unrealized gains............ 0.66 0.84
----------- -----------
Total from investment operations............. 0.76 0.89
----------- -----------
Less dividends and distributions from:
Net investment income...................... (0.08) (0.05)
Net realized gains......................... (0.08) (0.03)
----------- -----------
Total dividends and distributions............ (0.16) (0.08)
----------- -----------
Net asset value, end of period............... $ 11.41 $ 10.81
----------- -----------
----------- -----------
TOTAL INVESTMENT RETURN +.................... 7.12%(1) 8.89%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $ 1,633,846 $ 1,121,240
Ratios to average net assets:
Expenses................................... 1.96%(2) 2.03%(2)
Net investment income...................... 2.03%(2) 0.66%(2)
Portfolio turnover rate...................... 12% 21%
<FN>
- ------------
* COMMENCEMENT OF OPERATIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
(1) ANNUALIZED.
(2) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Paul D. Vance
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
GLOBAL DIVIDEND
GROWTH SECURITIES
[GRAPHIC]
SEMIANNUAL REPORT
SEPTEMBER 30, 1994
