<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES TWO WORLD TRADE CENTER, NEW YORK,
NEW YORK 10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
The six-month period ended September 30, 1995 was rewarding to investors in many
of the world's more developed markets. Despite recent signs of slowing economic
activity, many world equity markets are at or near all time highs. This
slow-down in economic activity has led to more relaxed monetary policies and
lower short term interest rates around the globe. Together with a benign
inflation outlook, current equity valuations appear to be very well supported.
Given this favorable economic environment, Dean Witter Global Dividend Growth
Securities posted a total return of 8.95 percent for the six-month period ended
September 30, 1995. This compares to a return of 9.17 percent for the Morgan
Stanley Capital International World Index (MSCI World Index). Surprising most
global strategists and equity managers, the United States equity market topped
the list in performance over this period with a return of 18.28 percent (as
measured by the Standard & Poor's 500 Composite Stock Price Index). Conversely,
Japan disappointed many investors with a U.S. dollar denominated return of -2.5
percent. This was mainly due to the combination of persistent yen strength and
the lack of significant economic fiscal stimuli. Recent stabilization of the yen
has alleviated the degree of Tokyo's underperformance.
PORTFOLIO ACTIVITY
During the period under review, there have been only modest changes to the
Fund's country allocation, as a small increase in assets committed to the United
States was offset by a reduction to assets in Italy. Several new equity
positions were added to the Fund, including NEC Corporation and Nintendo in
Japan, BAT Industries and British Steel in the United Kingdom, and Dayton Hudson
and KeyCorp in the United States. On September 30, 1995, the Fund's portfolio
comprised 115 securities, spread among 12 countries.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS, CONTINUED
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 long-term outlook for the economies and
the securities markets in most of the world's major countries is favorable and
that the stocks of well-established, international companies should perform
relatively well over the long 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.
We appreciate your support of Dean Witter Global Dividend Growth Securities and
look forward to continuing to serve your investment needs.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (99.6%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
4,140,000 Pioneer International Ltd.......... $ 10,944,297
-----------------
MULTI-INDUSTRY
5,000,000 Southcorp Holdings Ltd............. 11,178,440
-----------------
PAPER & FOREST PRODUCTS
1,335,000 Amcor Ltd.......................... 10,002,588
-----------------
TOTAL AUSTRALIA.................... 32,125,325
-----------------
CANADA (3.0%)
NATURAL GAS
1,185,000 TransCanada Pipelines Ltd.......... 15,673,435
-----------------
OIL RELATED
437,000 Imperial Oil Ltd................... 16,281,668
685,000 IPL Energy, Inc.................... 15,695,790
-----------------
31,977,458
-----------------
TELECOMMUNICATIONS
502,000 BCE Inc............................ 16,786,326
-----------------
TOTAL CANADA....................... 64,437,219
-----------------
FRANCE (7.5%)
BANKING
40,000 Societe Generale................... 4,095,479
-----------------
FINANCIAL SERVICES
42,300 Societe Eurafrance S.A............. 12,546,064
-----------------
FOODS & BEVERAGES
93,000 Eridania Beghin-Say S.A............ 14,056,272
-----------------
HOUSEHOLD PRODUCTS
166,000 BIC................................ 14,298,426
-----------------
MULTI-INDUSTRY
62,000 Compagnie Generale d'Industrie et
de Participations.................. 11,902,489
34,414 Financiere et Industrielle Gaz et
Eaux............................... 12,850,056
49,200 Saint-Louis........................ 13,013,388
281,000 Worms et Compagnie................. 12,101,981
-----------------
49,867,914
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
OIL INTEGRATED - INTERNATIONAL
195,800 Societe National Elf Aquitaine..... $ 13,217,743
230,000 Total S.A. (B Shares).............. 13,923,819
-----------------
27,141,562
-----------------
OIL RELATED
97,500 Esso Ste Anonyme Francaise......... 11,329,609
-----------------
TELECOMMUNICATIONS
143,000 Alcatel Alsthom.................... 12,029,721
-----------------
TELEVISION
130,000 Societe Television Francaise....... 12,834,942
-----------------
TOTAL FRANCE....................... 158,199,989
-----------------
GERMANY (6.3%)
BANKING
250,000 Deutsche Bank Aktiengesellschaft... 11,922,538
-----------------
CHEMICALS
52,300 BASF AG............................ 11,457,238
44,150 Bayer AG........................... 11,265,755
-----------------
22,722,993
-----------------
HEALTH & PERSONAL CARE
295,000 Douglas Holding AG................. 11,787,592
-----------------
MACHINERY - DIVERSIFIED
50,000 IWKA AG............................ 10,725,552
-----------------
MULTI-INDUSTRY
38,700 Preussag AG........................ 11,435,016
32,600 RWE AG............................. 11,163,757
29,000 Viag AG............................ 11,181,213
-----------------
33,779,986
-----------------
OFFICE EQUIPMENT
52,700 Herlitz AG......................... 9,568,384
-----------------
RETAIL - DEPARTMENT STORES
26,200 Karstadt AG........................ 11,626,078
-----------------
TEXTILES - APPAREL
13,000 Hugo Boss AG (Preferred)........... 10,753,593
-----------------
UTILITIES - ELECTRIC
290,000 Veba AG............................ 11,528,847
-----------------
TOTAL GERMANY...................... 134,415,563
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
HONG KONG (4.1%)
BANKING
1,163,000 HSBC Holdings PLC.................. $ 16,170,536
-----------------
CONGLOMERATES
2,060,000 Swire Pacific, Ltd. (Class A)...... 16,319,602
-----------------
REAL ESTATE
3,012,000 Cheung Kong (Holdings) Ltd......... 16,401,112
2,100,000 Realty Development Corp. (Class
A)................................. 6,057,039
-----------------
22,458,151
-----------------
TELECOMMUNICATIONS
9,024,800 Hong Kong Telecommunications,
Ltd................................ 16,400,238
-----------------
UTILITIES - ELECTRIC
4,575,000 Hong Kong Electric Holdings Ltd.... 15,296,353
-----------------
TOTAL HONG KONG.................... 86,644,880
-----------------
ITALY (2.0%)
NATURAL GAS
3,650,000 Italgas SpA........................ 10,907,006
-----------------
TELECOMMUNICATIONS
1,650,000 Sirti SpA.......................... 10,441,135
8,150,000 Telecom Italia SpA................. 10,630,874
-----------------
21,072,009
-----------------
TEXTILES - APPAREL
1,000,000 Benetton Group SpA................. 10,470,552
-----------------
TOTAL ITALY........................ 42,449,567
-----------------
JAPAN (24.2%)
AUTOMOTIVE
1,575,000 Honda Motor Co..................... 28,147,590
1,385,000 Toyota Motor Corp.................. 26,281,626
-----------------
54,429,216
-----------------
BUILDING MATERIALS
3,930,000 Sankyo Aluminium Industrial........ 20,044,578
2,075,000 Sekisui Chemical Co................ 26,250,000
-----------------
46,294,578
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
COMPUTER SERVICES
2,800,000 AT&T Global Info Solutions......... $ 24,598,394
375,000 Nintendo Co., Ltd.................. 27,296,687
-----------------
51,895,081
-----------------
ELECTRICAL & ELECTRONICS
2,450,000 Hitachi, Ltd....................... 26,566,265
320,000 Kyocera Corp....................... 26,152,610
1,725,000 Matsushita Electric Industrial Co.
Ltd................................ 26,325,301
2,620,000 Matsushita Electric Works.......... 27,094,378
1,875,000 NEC Corp........................... 25,978,916
480,000 Sony Corp.......................... 24,771,084
510,000 TDK Corp........................... 26,114,458
-----------------
183,003,012
-----------------
ENTERTAINMENT & LEISURE TIME
2,500,000 Mizuno Corp........................ 23,217,871
-----------------
FOODS & BEVERAGES
1,425,000 House Food Industry................ 26,182,229
3,970,000 Snow Brand Milk Products........... 26,506,526
-----------------
52,688,755
-----------------
METALS & MINING
4,000,000 Furukawa Co., Ltd.................. 19,678,715
-----------------
PHARMACEUTICALS
1,467,000 Taisho Pharmaceutical Co., Ltd..... 27,395,783
1,900,000 Takeda Chemical Industries......... 26,325,301
-----------------
53,721,084
-----------------
TRANSPORTATION
2,400,000 Yamato Transport Co. Ltd........... 26,987,952
-----------------
TOTAL JAPAN........................ 511,916,264
-----------------
MALAYSIA (2.0%)
BANKING
830,000 AMMB Holdings Berhad............... 10,236,722
-----------------
BUILDING & CONSTRUCTION
786,000 Cement Industries of Malaysia...... 2,517,326
1,462,000 Malayan Cement Berhad.............. 2,675,632
1,650,000 United Engineers Ltd............... 10,568,928
-----------------
15,761,886
-----------------
CONGLOMERATES
4,100,000 Sime Darby Berhad.................. 10,928,983
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
FOODS & BEVERAGES
343,000 Nestle (Malaysia) Berhad........... $ 2,429,043
-----------------
OIL RELATED
820,000 Esso Malaysia Berhad............... 2,267,356
-----------------
TOTAL MALAYSIA..................... 41,623,990
-----------------
NETHERLANDS (3.0%)
BANKING
206,000 ABN-AMRO Holdings.................. 8,538,726
-----------------
BUILDING & CONSTRUCTION
102,000 Koninklijke Volker Stevin NV....... 6,820,863
-----------------
CHEMICALS
100,000 DSM NV............................. 8,039,572
-----------------
FINANCIAL SERVICES
142,600 International Nederlande Groep
NV................................. 8,294,747
-----------------
INSURANCE
231,000 Aegon NV........................... 8,374,491
141,000 Fortis Amev NV..................... 8,236,992
-----------------
16,611,483
-----------------
OIL INTEGRATED - INTERNATIONAL
66,000 Royal Dutch Petroleum Co........... 8,124,476
-----------------
TEXTILES
140,000 Gamma Holding NV................... 6,311,439
-----------------
TOTAL NETHERLANDS.................. 62,741,306
-----------------
SWITZERLAND (4.1%)
BANKING
56,000 Swiss Bank Corp.................... 21,458,171
-----------------
CHEMICALS
27,250 Ciba-Geigy Ltd..................... 21,804,725
-----------------
FOODS & BEVERAGES
20,750 Nestle AG.......................... 21,280,668
-----------------
MULTI-INDUSTRY
19,000 BBC Brown Boveri AG................ 22,055,483
-----------------
TOTAL SWITZERLAND.................. 86,599,047
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM (11.9%)
BANKING
4,000,000 Hambros PLC........................ $ 12,410,720
1,510,500 Lloyds Bank PLC.................... 16,489,772
1,650,000 National Westminster Bank PLC...... 16,474,875
-----------------
45,375,367
-----------------
BREWERS
1,616,000 Bass PLC........................... 16,352,833
1,700,000 Scottish & Newcastle Breweries
PLC................................ 16,277,791
-----------------
32,630,624
-----------------
FOODS & BEVERAGES
5,050,000 Hazlewood Food PLC................. 9,752,863
5,800,000 Hillsdown Holdings PLC............. 16,251,078
-----------------
26,003,941
-----------------
MULTI-INDUSTRY
5,035,000 Hanson PLC......................... 16,050,403
-----------------
NATURAL GAS
3,835,000 British Gas PLC.................... 16,095,222
-----------------
RETAIL - MERCHANDISING
3,200,000 Tesco PLC.......................... 15,823,668
-----------------
STEEL & IRON
5,750,000 British Steel PLC.................. 16,566,095
-----------------
TELECOMMUNICATIONS
2,626,000 British Telecommunications PLC..... 16,461,554
-----------------
TOBACCO
1,973,000 B.A.T. Industries PLC.............. 16,440,055
-----------------
UTILITIES - ELECTRIC
1,150,000 South Wales Electricity PLC........ 16,693,527
-----------------
UTILITIES - WATER
1,700,000 Severn Trent PLC................... 16,630,998
1,300,000 Welsh Water PLC.................... 15,935,863
1,350,000 Welsh Water PLC (Preferred)........ 2,206,504
-----------------
34,773,365
-----------------
TOTAL UNITED KINGDOM............... 252,913,821
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
UNITED STATES (30.0%)
AEROSPACE & DEFENSE
620,000 Northrop Grumman Corp.............. $ 37,742,500
-----------------
AUTOMOTIVE
1,250,000 Ford Motor Co...................... 38,906,250
-----------------
BANKING
650,000 BankAmerica Corp................... 38,918,750
1,206,000 KeyCorp............................ 41,305,500
-----------------
80,224,250
-----------------
CHEMICALS
390,000 Monsanto Co........................ 39,292,500
-----------------
CONGLOMERATES
695,000 Minnesota Mining & Manufacturing
Co................................. 39,267,500
830,000 Tenneco Inc........................ 38,387,500
-----------------
77,655,000
-----------------
HEALTH & PERSONAL CARE
555,700 Bristol-Myers Squibb Co............ 40,496,637
-----------------
MACHINERY - DIVERSIFIED
465,000 Deere & Co......................... 37,839,375
-----------------
METALS & MINING
634,000 Phelps Dodge Corp.................. 39,704,250
-----------------
OIL INTEGRATED - INTERNATIONAL
780,000 Chevron Corp....................... 37,927,500
-----------------
RETAIL - MERCHANDISING
521,500 Dayton-Hudson Corp................. 39,568,813
435,000 KMart Corp......................... 6,307,500
-----------------
45,876,313
-----------------
TELECOMMUNICATIONS
1,122,000 Sprint Corporation................. 39,270,000
-----------------
TOBACCO
500,000 Philip Morris Companies, Inc....... 41,750,000
-----------------
TRANSPORTATION
580,000 Conrail, Inc....................... 39,875,000
-----------------
UTILITIES - ELECTRIC
1,311,000 Pacific Gas & Electric Co.......... 39,166,125
-----------------
TOTAL UNITED STATES................ 635,725,700
-----------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $1,922,925,510)... 2,109,792,671
-----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (0.4%)
U.S. GOVERNMENT AGENCY (a)
$ 8,500 Federal Home Loan Mortgage Corp.
6.30% due 10/02/95 (Amortized Cost
$8,500,000)........................ $ 8,500,000
-----------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,931,425,510) (B).......... 100.0% 2,118,292,671
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES................................... 0.0 488,244
------ --------------
NET ASSETS.................................... 100.0% $2,118,780,915
------ --------------
------ --------------
<FN>
- ---------------------
(a) Security was 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 is $1,938,582,965; the
aggregate gross unrealized appreciation is $242,190,393 and the aggregate
gross unrealized depreciation is $62,480,687, resulting in net unrealized
appreciation of $179,709,706.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT SEPTEMBER 30, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION/
TO DELIVER FOR DATE (DEPRECIATION)
- -------------------------------------------------------------------
<S> <C> <C> <C>
$ 622,069 Y 61,989,149 10/02/95 $ 313
Y 177,935,695 $ 1,792,803 10/03/95 6,300
CHF 444,989 $ 387,149 10/04/95 1,376
Y 69,705,185 $ 699,149 10/04/95 (702)
$ 415,476 GBP 262,312 10/06/95 (236)
$ 736,106 DEM 1,049,540 10/09/95 (361)
$ 1,016,375 MYR 2,554,253 10/10/95 (162)
$ 2,362,131 FRF 11,622,865 10/31/95 (960)
$ 4,029,208 FRF 19,819,673 10/31/95 (2,865)
$ 157,135 ITL 254,441,539 10/31/95 609
$ 315,490 ITL 510,304,838 10/31/95 880
$ 1,393,697 ITL 2,243,642,589 10/31/95 (2,722)
-------
Net Unrealized Appreciation.................. $ 1,470
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------
Aerospace & Defense..................... $ 37,742,500 1.8%
Automotive.............................. 93,335,466 4.4
Banking................................. 198,021,789 9.3
Brewers................................. 32,630,624 1.5
Building & Construction................. 33,527,046 1.6
Building Materials...................... 46,294,578 2.2
Chemicals............................... 91,859,790 4.3
Computer Services....................... 51,895,081 2.4
Conglomerates........................... 104,903,585 5.0
Electrical & Electronics................ 183,003,012 8.6
Entertainment & Leisure Time............ 23,217,871 1.1
Financial Services...................... 20,840,811 1.0
Foods & Beverages....................... 116,458,679 5.5
Health & Personal Care.................. 52,284,229 2.4
Household Products...................... 14,298,426 0.7
Insurance............................... 16,611,483 0.8
Machinery - Diversified................. 48,564,927 2.3
Metals & Mining......................... 59,382,965 2.8
Multi-Industry.......................... 132,932,226 6.3
Natural Gas............................. 42,675,663 2.0
Office Equipment........................ 9,568,384 0.5
Oil Integrated - International.......... 73,193,538 3.5
Oil Related............................. 45,574,423 2.2
Paper & Forest Products................. 10,002,588 0.5
Pharmaceuticals......................... 53,721,084 2.5
Real Estate............................. 22,458,151 1.1
Retail - Department Stores.............. 11,626,078 0.5
Retail - Merchandising.................. 61,699,981 2.9
Steel & Iron............................ 16,566,095 0.8
Telecommunications...................... 122,019,848 5.8
Television.............................. 12,834,942 0.6
Textiles................................ 6,311,439 0.3
Textiles - Apparel...................... 21,224,145 1.0
Tobacco................................. 58,190,055 2.7
Transportation.......................... 66,862,952 3.2
U.S. Government Agency.................. 8,500,000 0.4
Utilities - Electric.................... 82,684,852 3.9
Utilities - Water....................... 34,773,365 1.6
---------------- -----
$ 2,118,292,671 100.0%
---------------- -----
---------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------------
<S> <C> <C>
Common Stocks........................... $ 2,096,832,574 99.0%
Preferred Stocks........................ 12,960,097 0.6
Short-Term Investment................... 8,500,000 0.4
---------------- -----
$ 2,118,292,671 100.0%
---------------- -----
---------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $1,931,425,510).......................... $2,118,292,671
Cash........................................................ 239,079
Receivable for:
Dividends............................................... 7,459,469
Shares of beneficial interest sold...................... 4,642,596
Investments sold........................................ 3,445,648
Foreign withholding taxes reclaimed..................... 3,084,620
Interest................................................ 10,598
Deferred organizational expenses............................ 98,101
Prepaid expenses and other assets........................... 122,869
--------------
TOTAL ASSETS........................................... 2,137,395,651
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 13,223,370
Shares of beneficial interest repurchased............... 1,636,353
Plan of distribution fee................................ 1,547,616
Investment management fee............................... 1,254,814
Dividends to shareholders............................... 584,031
Accrued expenses and other payables......................... 368,552
--------------
TOTAL LIABILITIES...................................... 18,614,736
--------------
NET ASSETS:
Paid-in-capital............................................. 1,894,735,877
Net unrealized appreciation................................. 186,803,921
Accumulated undistributed net investment income............. 4,074,717
Accumulated undistributed net realized gain................. 33,166,400
--------------
NET ASSETS............................................. $2,118,780,915
--------------
--------------
NET ASSET VALUE PER SHARE,
175,708,614 SHARES OUTSTANDING (UNLIMITED SHARES
AUTHORIZED OF $.01 PAR VALUE).............................
$12.06
--------------
--------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $3,968,819 foreign withholding tax)....... $ 36,316,380
Interest.................................................... 263,604
------------
TOTAL INCOME........................................... 36,579,984
------------
EXPENSES
Plan of distribution fee.................................... 9,087,789
Investment management fee................................... 7,354,763
Transfer agent fees and expenses............................ 1,248,690
Custodian fees.............................................. 780,984
Shareholder reports and notices............................. 89,113
Registration fees........................................... 80,510
Professional fees........................................... 40,054
Organizational expenses..................................... 18,536
Trustees' fees and expenses................................. 16,850
Other....................................................... 125,862
------------
TOTAL EXPENSES......................................... 18,843,151
------------
NET INVESTMENT INCOME.................................. 17,736,833
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investments............................................. 36,912,047
Foreign exchange transactions........................... 147,829
------------
TOTAL GAIN............................................. 37,059,876
------------
Net change in unrealized appreciation on:
Investments............................................. 114,609,506
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ (462,786)
------------
TOTAL APPRECIATION..................................... 114,146,720
------------
NET GAIN............................................... 151,206,596
------------
NET INCREASE................................................ $168,943,429
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR
ENDED ENDED
SEPTEMBER 30, 1995 MARCH 31,
(UNAUDITED) 1995
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 17,736,833 $ 18,696,831
Net realized gain........................................... 37,059,876 74,942,236
Net change in unrealized appreciation....................... 114,146,720 37,046,383
------------------ -------------
NET INCREASE........................................... 168,943,429 130,685,450
------------------ -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (13,662,116) (18,860,127)
Net realized gain........................................... (47,043,928) (40,561,883)
------------------ -------------
TOTAL.................................................. (60,706,044) (59,422,010)
------------------ -------------
Net increase from transactions in shares of beneficial
interest.................................................. 156,596,757 661,443,032
------------------ -------------
TOTAL INCREASE......................................... 264,834,142 732,706,472
NET ASSETS:
Beginning of period......................................... 1,853,946,773 1,121,240,301
------------------ -------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$4,074,717 AND $0, RESPECTIVELY)........................ $2,118,780,915 $1,853,946,773
------------------ -------------
------------------ -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (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 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, American Stock Exchange, other domestic or foreign stock exchange 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 at time of purchase
are valued on a mark-to-market basis until sixty days prior to maturity and
thereafter at amortized cost based on their value on the 61st day. Short-term
debt securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted over the life of the respective securities. Dividend
income is recorded on the ex-dividend date except with respect to 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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. 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 CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized gain/loss on foreign exchange transactions. The Fund
records realized gains or losses on delivery of the currency or at the time the
forward contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.
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 DISTRIBUTION 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.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
G. ORGANIZATIONAL EXPENSES -- Dean Witter InterCapital Inc. (the "Investment
Manager") paid the organizational expenses of approximately $180,000 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, the Fund pays its Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.75% of daily net assets up to $1 billion; 0.725% of the
next $500 million; and 0.70% of daily net assets over $1.5 billion.
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. ("DWR"), 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
distribution of prospectuses and reports used in connection with the offering of
the Fund's shares to other than current shareholders and preparation, printing
and
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
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 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, 1995, it received approximately $2,217,000 in contingent deferred sales
charges from certain 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, 1995 aggregated
$452,875,141 and $333,323,245, respectively.
For the six months ended September 30, 1995, the Fund incurred brokerage
commissions of $97,085 with DWR for portfolio transactions executed on behalf of
the Fund. At September 30, 1995, included in the Fund's payable for investments
purchased for unsettled trades with DWR was $1,607,666.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At September 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $213,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended September 30, 1995
included in Trustees' fees and expenses in the Statement of Operations amounted
to $6,017. At September 30, 1995, the Fund had an accrued pension liability of
$20,693 which is included in accrued expenses in the Statement of Assets and
Liabilities.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 23,478,275 $ 278,440,542 74,392,250 $835,025,001
Reinvestment of dividends and distributions...................... 4,771,798 56,350,645 5,026,624 54,808,636
----------- -------------- ----------- ------------
28,250,073 334,791,187 79,418,874 889,833,637
Repurchased...................................................... (15,023,022) (178,194,430) (20,654,535) (228,390,605)
----------- -------------- ----------- ------------
Net increase..................................................... 13,227,051 $ 156,596,757 58,764,339 $661,443,032
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
At March 31, 1995, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and income from the
mark-to-market of passive foreign investment companies.
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.
At September 30, 1995, there were no outstanding forward contracts other than
those used to facilitate settlement of foreign currency denominated portfolio
transactions.
Forward contracts involve elements of market risk in excess of the amounts
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 liability of the counterparties to meet the terms of their contracts.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
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 FOR THE PERIOD
SEPTEMBER 30, FOR THE YEAR JUNE 30, 1993*
1995 ENDED THROUGH
(UNAUDITED) MARCH 31, 1995 MARCH 31, 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period............................ $ 11.41 $ 10.81 $ 10.00
-------- -------- --------
Net investment income.............. 0.10 0.14 0.05
Net realized and unrealized gain... 0.91 0.88 0.84
-------- -------- --------
Total from investment operations... 1.01 1.02 0.89
-------- -------- --------
Less dividends and distributions
from:
Net investment income........... (0.08) (0.14) (0.05)
Net realized gain............... (0.28) (0.28) (0.03)
-------- -------- --------
Total dividends and
distributions..................... (0.36) (0.42) (0.08)
-------- -------- --------
Net asset value, end of period..... $ 12.06 $ 11.41 $ 10.81
-------- -------- --------
-------- -------- --------
TOTAL INVESTMENT RETURN+........... 8.95%(1) 9.60% 8.89%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.88%(2) 1.97% 2.03%(2)
Net investment income.............. 1.77%(2) 1.22% 0.66%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in
millions.......................... $2,119 $1,854 $1,121
Portfolio turnover rate............ 17%(1) 32% 21%(1)
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
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, 1995
