<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES TWO WORLD TRADE CENTER, NEW YORK,
NEW YORK 10048
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1996
DEAR SHAREHOLDER:
The six-month period ended September 30, 1996, was rewarding for global equity
investors. The most recent economic data suggests that foreign economies are
improving just as the U.S. economy appears to be slowing. In the near term, we
expect that this trend will continue, producing a favorable environment for
global equities. In addition, we believe that inflation will remain benign,
providing further support for current equity valuations.
PERFORMANCE AND PORTFOLIO
For the six-month period ended September 30, 1996, Dean Witter Global Dividend
Growth Securities provided a total return of 5.40 percent. This compares
favorably to a total return of 3.45 percent for the Morgan Stanley Capital
International World Index (MSCI World Index). Since inception (June 30, 1993),
the Fund's total return was 49.41 percent, versus 38.81 percent for the MSCI
World Index. We attribute the Fund's continued outperformance to our stringent,
proprietary screening processes, which we use consistently in selecting
securities for the portfolio.
During the period under review, we made no changes to the Fund's country
allocation. The Fund remains fully invested, with 123 equity positions
diversified among the world's twelve largest markets, as defined by market
capitalization. The United States, as the world's largest capital market,
continues to be the Fund's largest target weighting, at approximately 30 percent
of total net assets. The Fund's second largest target weighting is Japan at 26
percent and third is the United Kingdom at 10 percent. We added several new
equity positions to the Fund, including Compagnie de Saint-Gobain and LaFarge
S.A. in France, MAN AG in Germany, Toronto Dominion Bank in Canada and Ashland,
Inc. in the United States.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1996, CONTINUED
LOOKING AHEAD
We will remain sensitive to any factors that would necessitate changes to the
Fund's country allocation. 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 well over the long term. Consequently, we remain confident, patient and
nearly fully invested.
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,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (98.9%)
AUSTRALIA (1.5%)
BUILDING & CONSTRUCTION
4,900,000 Pioneer International Ltd..... $ 13,375,236
-----------------
MULTI-INDUSTRY
4,867,000 Southcorp Holdings Ltd........ 13,824,266
-----------------
PAPER & FOREST PRODUCTS
2,230,000 Amcor Ltd..................... 13,444,545
-----------------
TOTAL AUSTRALIA............... 40,644,047
-----------------
CANADA (3.0%)
BANKING
783,000 Toronto Dominion Bank......... 15,896,872
-----------------
NATURAL GAS
1,020,000 TransCanada Pipelines Ltd..... 16,364,638
-----------------
OIL RELATED
365,000 Imperial Oil Ltd.............. 15,464,057
605,000 IPL Energy, Inc............... 16,392,173
-----------------
31,856,230
-----------------
TELECOMMUNICATIONS
390,000 BCE, Inc...................... 16,680,740
-----------------
TOTAL CANADA.................. 80,798,480
-----------------
FRANCE (7.3%)
BANKING
149,600 Societe Generale.............. 16,542,391
-----------------
BUILDING MATERIALS
129,500 Compagnie de Saint-Gobain..... 17,554,902
291,000 Lafarge S.A................... 17,159,747
-----------------
34,714,649
-----------------
FINANCIAL SERVICES
40,135 Societe Eurafrance S.A........ 15,948,918
-----------------
FOODS & BEVERAGES
113,000 Eridania Beghin-Say S.A....... 17,440,838
-----------------
MULTI-INDUSTRY
61,000 Compagnie Generale d'Industrie
et de Participations.......... 13,679,461
69,800 Saint-Louis................... 16,869,437
270,000 Worms et Compagnie............ 13,594,640
-----------------
44,143,538
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
OIL INTEGRATED - INTERNATIONAL
211,200 Societe National Elf
Aquitaine..................... $ 16,519,555
218,000 Total S.A. (B Shares)......... 17,161,199
-----------------
33,680,754
-----------------
TELECOMMUNICATIONS
210,000 Alcatel Alsthom............... 17,710,794
-----------------
TELEVISION
145,000 Societe Television Francaise
1............................. 16,089,895
-----------------
TOTAL FRANCE.................. 196,271,777
-----------------
GERMANY (6.5%)
BANKING
261,000 Deutsche Bank
Aktiengesellschaft............ 12,303,895
-----------------
BUILDING & CONSTRUCTION
319,500 Bilfinger & Berger Bau AG..... 13,511,507
-----------------
CHEMICALS
439,000 BASF AG....................... 13,815,893
371,000 Bayer AG...................... 13,621,820
-----------------
27,437,713
-----------------
MACHINERY - DIVERSIFIED
52,000 MAN AG........................ 13,432,992
-----------------
MULTI-INDUSTRY
52,700 Preussag AG................... 13,147,358
361,000 RWE AG........................ 13,633,359
34,800 Viag AG....................... 13,359,166
-----------------
40,139,883
-----------------
RETAIL - DEPARTMENT STORES
38,700 Karstadt AG................... 13,371,951
-----------------
RETAIL - SPECIALTY
317,000 Douglas Holding AG............ 13,821,466
-----------------
STEEL & IRON
72,900 Thyssen AG.................... 13,493,096
-----------------
TEXTILES - APPAREL
11,540 Hugo Boss AG (Pref.).......... 13,467,873
-----------------
UTILITIES - ELECTRIC
255,000 Veba AG....................... 13,358,576
-----------------
TOTAL GERMANY................. 174,338,952
-----------------
HONG KONG (4.1%)
BANKING
1,160,000 HSBC Holdings PLC............. 21,526,485
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
CONGLOMERATES
2,378,000 Swire Pacific Ltd. (Class
A)............................ $ 21,295,844
-----------------
REAL ESTATE
2,900,000 Cheung Kong (Holdings) Ltd.... 22,314,039
-----------------
TELECOMMUNICATIONS
12,520,000 Hong Kong Telecommunications
Ltd........................... 22,667,080
-----------------
UTILITIES - ELECTRIC
6,703,000 Hong Kong Electric Holdings
Ltd........................... 21,670,675
-----------------
TOTAL HONG KONG............... 109,474,123
-----------------
ITALY (4.0%)
FINANCIAL SERVICES
2,178,000 Istituto Mobiliare Italiano
SpA........................... 18,505,135
-----------------
NATURAL GAS
4,900,000 Italgas SpA................... 18,338,805
-----------------
OIL INTEGRATED - INTERNATIONAL
3,655,000 Ente Nazionale Idrocarburi
SpA........................... 18,682,978
-----------------
TELECOMMUNICATIONS
2,767,000 Sirti SpA..................... 16,805,482
10,125,000 Telecom Italia SpA............ 18,647,817
-----------------
35,453,299
-----------------
TEXTILES - APPAREL
1,483,000 Benetton Group SpA............ 16,699,573
-----------------
TOTAL ITALY................... 107,679,790
-----------------
JAPAN (25.6%)
AUTOMOTIVE
1,313,000 Honda Motor Co................ 32,992,910
1,250,000 Toyota Motor Corp............. 31,970,744
-----------------
64,963,654
-----------------
BREWERS
2,956,000 Kirin Brewery Co., Ltd........ 32,894,553
-----------------
BUILDING MATERIALS
2,952,000 Sekisui House Ltd............. 32,320,201
-----------------
COMPUTER SERVICES
2,572,000 NCR Japan Ltd................. 26,082,384
-----------------
ELECTRONICS & ELECTRICAL
3,326,000 Hitachi, Ltd.................. 32,236,202
456,000 Kyocera Corp.................. 32,533,429
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
1,870,000 Matsushita Electric Industrial
Co. Ltd....................... $ 31,382,034
3,193,000 Matsushita Electric Works..... 31,520,237
2,830,000 NEC Corp...................... 33,270,214
1,965,000 Sharp Corp.................... 32,623,620
493,600 Sony Corp..................... 31,140,698
516,000 TDK Corp...................... 32,090,819
-----------------
256,797,253
-----------------
ENTERTAINMENT & LEISURE TIME
2,500,000 Mizuno Corp................... 20,192,049
505,000 Nintendo Corp., Ltd........... 32,403,751
-----------------
52,595,800
-----------------
FOODS & BEVERAGES
1,475,000 House Food Industry........... 26,076,909
3,773,000 Snow Brand Milk Products...... 23,803,455
-----------------
49,880,364
-----------------
MACHINERY
4,906,000 Mitsubishi Electric Corp...... 33,461,007
3,975,000 Mitsubishi Heavy Industries,
Ltd........................... 32,355,066
-----------------
65,816,073
-----------------
METALS & MINING
2,394,000 Furukawa Co., Ltd............. 11,322,247
-----------------
PHARMACEUTICALS
1,503,000 Taisho Pharmaceutical Co.,
Ltd........................... 31,832,361
1,783,000 Takeda Chemical Industries.... 32,642,197
-----------------
64,474,558
-----------------
TRANSPORTATION
2,883,000 Yamato Transport Co. Ltd...... 31,306,022
-----------------
TOTAL JAPAN................... 688,453,109
-----------------
MALAYSIA (2.0%)
BANKING
1,949,000 AMMB Holdings Berhad.......... 14,153,619
-----------------
BUILDING & CONSTRUCTION
892,000 Cement Industries of
Malaysia...................... 2,847,339
1,480,000 Malayan Cement Berhad......... 3,720,373
1,827,000 United Engineers Malaysia
Berhad........................ 14,142,447
-----------------
20,710,159
-----------------
CONGLOMERATES
4,142,000 Sime Darby Berhad............. 13,717,421
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
FOODS & BEVERAGES
408,000 Nestle Malaysia Berhad........ $ 3,141,968
-----------------
OIL RELATED
860,000 Esso Malaysia Berhad.......... 2,384,885
-----------------
TOTAL MALAYSIA................ 54,108,052
-----------------
NETHERLANDS (3.0%)
BANKING
162,000 ABN-AMRO Holding NV........... 8,990,526
-----------------
BUILDING & CONSTRUCTION
102,000 Koninklijke Volker Stevin
NV............................ 9,066,667
-----------------
CHEMICALS
89,500 DSM NV........................ 8,792,983
-----------------
ELECTRICAL EQUIPMENT
272,100 Philips Electronics NV........ 9,833,790
-----------------
FINANCIAL SERVICES
280,500 ING Groep NV.................. 8,759,474
-----------------
INSURANCE
310,000 Fortis Amev NV................ 9,281,871
-----------------
OIL INTEGRATED - INTERNATIONAL
60,000 Royal Dutch Petroleum Co...... 9,385,965
-----------------
TELECOMMUNICATIONS
253,000 Koninklijke PTT Nederland
NV............................ 8,714,444
-----------------
TEXTILES
140,000 Gamma Holding NV.............. 6,901,754
-----------------
TOTAL NETHERLANDS............. 79,727,474
-----------------
SWITZERLAND (2.0%)
BANKING
91,600 Swiss Bank Corp............... 17,466,566
-----------------
CHEMICALS
13,950 Ciba-Geigy AG................. 17,755,758
-----------------
FOODS & BEVERAGES
15,900 Nestle AG..................... 17,715,948
-----------------
TOTAL SWITZERLAND............. 52,938,272
-----------------
UNITED KINGDOM (9.6%)
BANKING
3,900,000 Hambros PLC................... 15,958,613
2,884,000 Lloyds TSB Group PLC.......... 17,058,698
1,592,000 National Westminster Bank
PLC........................... 16,890,076
-----------------
49,907,387
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
BREWERS
1,345,000 Bass PLC...................... $ 16,353,177
1,611,000 Scottish & Newcastle Breweries
PLC........................... 16,915,191
-----------------
33,268,368
-----------------
FOODS & BEVERAGES
5,050,000 Hazlewood Foods PLC........... 7,665,173
5,732,000 Hillsdown Holdings PLC........ 16,144,980
-----------------
23,810,153
-----------------
MULTI-INDUSTRY
7,061,000 Hanson PLC.................... 17,291,768
-----------------
NATURAL GAS
5,325,000 British Gas PLC............... 16,581,794
-----------------
RETAIL - MERCHANDISING
3,567,000 Tesco PLC..................... 16,912,374
-----------------
STEEL & IRON
5,603,000 British Steel PLC............. 17,315,959
-----------------
TELECOMMUNICATIONS
2,874,000 British Telecommunications
PLC........................... 16,010,157
-----------------
TOBACCO
2,360,000 B.A.T. Industries PLC......... 15,731,873
-----------------
UTILITIES - ELECTRIC
3,691,000 Scottish Hydro-Electric PLC... 16,229,652
-----------------
UTILITIES - WATER
1,430,000 Hyder PLC..................... 16,066,428
1,350,000 Hyder PLC (Pref.)............. 2,160,011
1,790,000 Severn Trent PLC.............. 16,525,853
-----------------
34,752,292
-----------------
TOTAL UNITED KINGDOM.......... 257,811,777
-----------------
UNITED STATES (30.3%)
AEROSPACE & DEFENSE
550,000 Northrop Grumman Corp......... 44,137,500
-----------------
AUTOMOTIVE
1,325,000 Ford Motor Co................. 41,406,250
-----------------
BANKING
504,000 BankAmerica Corp.............. 41,391,000
938,000 KeyCorp....................... 41,272,000
-----------------
82,663,000
-----------------
CHEMICALS
1,140,000 Monsanto Co................... 41,610,000
-----------------
COMPUTERS
328,500 International Business
Machines Corp................. 40,898,250
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
CONGLOMERATES
586,000 Minnesota Mining &
Manufacturing Co.............. $ 40,946,750
820,000 Tenneco, Inc.................. 41,102,500
-----------------
82,049,250
-----------------
HEALTH & PERSONAL CARE
427,000 Bristol-Myers Squibb Co....... 41,152,125
-----------------
MACHINERY - DIVERSIFIED
968,000 Deere & Co.................... 40,656,000
-----------------
METALS & MINING
653,000 Phelps Dodge Corp............. 41,873,625
-----------------
OIL - DOMESTIC
1,045,300 Ashland, Inc.................. 41,550,675
-----------------
OIL INTEGRATED - INTERNATIONAL
658,000 Chevron Corp.................. 41,207,250
-----------------
PAPER & FOREST PRODUCTS
966,000 International Paper Co........ 41,055,000
-----------------
RETAIL - MERCHANDISING
1,266,700 Dayton-Hudson Corp............ 41,801,100
-----------------
TELECOMMUNICATIONS
1,050,000 Sprint Corp................... 40,818,750
-----------------
TIRE & RUBBER GOODS
855,000 Goodyear Tire & Rubber Co..... 39,436,875
-----------------
TOBACCO
450,000 Philip Morris Companies,
Inc........................... 40,387,500
-----------------
TRANSPORTATION
560,000 Conrail, Inc.................. 40,530,000
-----------------
UTILITIES - ELECTRIC
1,510,000 Pacific Gas & Electric Co..... 32,842,500
-----------------
TOTAL UNITED STATES........... 816,075,650
-----------------
TOTAL COMMON AND PREFERRED
STOCKS
(IDENTIFIED COST
$2,342,128,843)............... 2,658,321,503
-----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (0.7%)
U.S. GOVERNMENT AGENCY
$ 17,500 Federal Home Loan Mortgage
Corp. 5.70% due 10/01/96
(Amortized Cost
$17,500,000).................. $ 17,500,000
-----------------
TOTAL INVESTMENTS
(IDENTIFIED COST
$2,359,628,843) (B)........ 99.6% 2,675,821,503
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES...... 0.4 11,718,390
----- -------------
NET ASSETS................. 100.0% $2,687,539,893
----- -------------
----- -------------
<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 approximates identified
cost. The aggregate gross unrealized appreciation was $393,542,977 and the
aggregate gross unrealized depreciation was $77,350,317, resulting in net
unrealized appreciation of $316,192,660.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT SEPTEMBER 30, 1996:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -----------------------------------------------------------
<S> <C> <C> <C>
$ 1,558,947 L 995,814 10/01/96 $ (697)
$ 1,985,527 DEM 2,992,984 10/01/96 (23,172)
$ 419,570 Y 46,454,836 10/01/96 (2,673)
Y 25,285,283 $ 228,764 10/01/96 1,848
DEM 1,540,270 $ 1,011,140 10/02/96 1,260
Y 52,064,942 $ 467,034 10/02/96 (210)
Y 99,339,183 $ 890,894 10/02/96 (600)
$ 723,140 L 462,218 10/03/96 139
ITL 2,869,791,719 $ 1,883,436 10/03/96 (866)
MYR 1,526,139 $ 608,547 10/04/96 (398)
ITL 3,245,293,330 $ 2,126,848 10/07/96 (4,008)
$ 1,240,789 AUD 1,566,396 10/08/96 (1,457)
$ 567,370 FRF 2,889,050 10/31/96 (7,889)
FRF 2,456,807 $ 477,356 10/31/96 1,581
FRF 4,299,200 $ 833,098 10/31/96 532
--------
Net unrealized depreciation........ $(36,610)
--------
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Aerospace & Defense............................................................... $ 44,137,500 1.6%
Automotive........................................................................ 106,369,904 4.0
Banking........................................................................... 239,450,741 8.9
Brewers........................................................................... 66,162,921 2.5
Building & Construction........................................................... 56,663,569 2.1
Building Materials................................................................ 67,034,850 2.5
Chemicals......................................................................... 95,596,454 3.6
Computer Services................................................................. 26,082,384 1.0
Computers......................................................................... 40,898,250 1.5
Conglomerates..................................................................... 117,062,515 4.4
Electrical Equipment.............................................................. 9,833,790 0.4
Electronics & Electrical.......................................................... 256,797,253 9.5
Entertainment & Leisure Time...................................................... 52,595,800 2.0
Financial Services................................................................ 43,213,527 1.6
Foods & Beverages................................................................. 111,989,271 4.2
Health & Personal Care............................................................ 41,152,125 1.5
Insurance......................................................................... 9,281,871 0.3
Machinery......................................................................... 65,816,073 2.4
Machinery - Diversified........................................................... 54,088,992 2.0
Metals & Mining................................................................... 53,195,872 2.0
Multi-Industry.................................................................... 115,399,455 4.3
Natural Gas....................................................................... 51,285,237 1.9
Oil - Domestic.................................................................... 41,550,675 1.5
Oil Integrated - International.................................................... 102,956,947 3.8
Oil Related....................................................................... 34,241,115 1.3
Paper & Forest Products........................................................... 54,499,545 2.0
Pharmaceuticals................................................................... 64,474,558 2.4
Real Estate....................................................................... 22,314,039 0.8
Retail - Department Stores........................................................ 13,371,951 0.5
Retail - Merchandising............................................................ 58,713,474 2.2
Retail - Specialty................................................................ 13,821,466 0.5
Steel & Iron...................................................................... 30,809,055 1.1
Telecommunications................................................................ 158,055,264 5.9
Television........................................................................ 16,089,895 0.6
Textiles.......................................................................... 6,901,754 0.3
Textiles - Apparel................................................................ 30,167,446 1.1
Tire & Rubber Goods............................................................... 39,436,875 1.5
Tobacco........................................................................... 56,119,373 2.1
Transportation.................................................................... 71,836,022 2.7
U.S. Government Agency............................................................ 17,500,000 0.7
Utilities - Electric.............................................................. 84,101,403 3.1
Utilities - Water................................................................. 34,752,292 1.3
--------------------- -----
$ 2,675,821,503 99.6%
--------------------- -----
--------------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks..................................................................... $ 2,642,693,619 98.3%
Preferred Stocks.................................................................. 15,627,884 0.6
Short-Term Investment............................................................. 17,500,000 0.7
--------------------- -----
$ 2,675,821,503 99.6%
--------------------- -----
--------------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $2,359,628,843).......................... $2,675,821,503
Cash........................................................ 347,112
Receivable for:
Investments sold........................................ 11,036,417
Dividends............................................... 9,045,239
Shares of beneficial interest sold...................... 4,622,454
Foreign withholding taxes reclaimed..................... 2,973,873
Interest................................................ 12,503
Deferred organizational expenses............................ 63,033
Prepaid expenses and other assets........................... 77,311
--------------
TOTAL ASSETS........................................... 2,703,999,445
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 11,413,234
Plan of distribution fee................................ 1,919,881
Investment management fee............................... 1,612,806
Shares of beneficial interest repurchased............... 1,017,913
Accrued expenses and other payables......................... 495,718
--------------
TOTAL LIABILITIES...................................... 16,459,552
--------------
NET ASSETS:
Paid-in-capital............................................. 2,282,898,458
Net unrealized appreciation................................. 316,179,723
Accumulated undistributed net investment income............. 8,530,905
Accumulated undistributed net realized gain................. 79,930,807
--------------
NET ASSETS............................................. $2,687,539,893
--------------
--------------
NET ASSET VALUE PER SHARE,
206,272,500 SHARES OUTSTANDING (UNLIMITED SHARES
AUTHORIZED OF $.01 PAR VALUE).............................
$13.03
--------------
--------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $4,767,505 foreign withholding tax)....... $ 43,080,724
Interest.................................................... 407,535
------------
TOTAL INCOME........................................... 43,488,259
------------
EXPENSES
Plan of distribution fee.................................... 10,971,279
Investment management fee................................... 9,280,228
Transfer agent fees and expenses............................ 1,490,500
Custodian fees.............................................. 670,259
Registration fees........................................... 142,424
Shareholder reports and notices............................. 85,324
Professional fees........................................... 39,395
Organizational expenses..................................... 18,079
Trustees' fees and expenses................................. 12,721
Other....................................................... 20,444
------------
TOTAL EXPENSES......................................... 22,730,653
------------
NET INVESTMENT INCOME.................................. 20,757,606
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. 85,270,426
Foreign exchange transactions........................... (215,519)
------------
TOTAL GAIN............................................. 85,054,907
------------
Net change in unrealized appreciation on:
Investments............................................. 28,149,147
Net translation of forward foreign currency contracts,
other assets and liabilities denominated in foreign
currencies............................................ 160,992
------------
TOTAL APPRECIATION..................................... 28,310,139
------------
NET GAIN............................................... 113,365,046
------------
NET INCREASE................................................ $134,122,652
------------
------------
</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, 1996 MARCH 31,
(UNAUDITED) 1996
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 20,757,606 $ 22,314,052
Net realized gain........................................... 85,054,907 127,041,313
Net change in unrealized appreciation....................... 28,310,139 215,212,383
------------------ -------------
NET INCREASE........................................... 134,122,652 364,567,748
------------------ -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (10,003,650) (25,446,868)
Net realized gain........................................... (90,585,403) (83,961,762)
------------------ -------------
TOTAL.................................................. (100,589,053) (109,408,630)
------------------ -------------
Net increase from transactions in shares of beneficial
interest.................................................. 220,005,480 324,894,923
------------------ -------------
TOTAL INCREASE......................................... 253,539,079 580,054,041
NET ASSETS:
Beginning of period......................................... 2,434,000,814 1,853,946,773
------------------ -------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$8,530,905 AND DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME OF $2,223,051, RESPECTIVELY)..................... $2,687,539,893 $2,434,000,814
------------------ -------------
------------------ -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (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's investment objective is to
provide reasonable current income and long-term growth of income and capital.
The Fund seeks to achieve its objective by investing primarily in common stock
of issuers worldwide, with a record of paying dividends and the potential for
increasing dividends. The Fund was organized as a Massachusetts business trust
on January 12, 1993 and commenced operations on June 30, 1993.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American, or 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.
Dividend income and other distributions are recorded on the ex-
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
dividend date except for certain dividends from foreign securities which are
recorded as soon as the Fund is informed after the ex-dividend date. Discounts
are accreted over the life of the respective securities. 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 foreign currency
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 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 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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
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 -- Dean Witter InterCapital Inc. (the "Investment
Manager") paid the organizational expenses of approximately $180,000 and was
reimbursed for the full amount thereof. Such expenses have been deferred and are
being amortized 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 the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund as of 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. Effective May 1,
1996, the annual rate was reduced to 0.675% of net assets in excess of $2.5
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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
Manager and Distributor, and other employees or selected broker-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 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.
Although there is no legal obligation for the Fund to pay expenses incurred in
excess of payments made to the Distributor under the Plan and the proceeds of
contingent deferred sales charges paid by investors upon redemption of shares,
if for any reason the Plan is terminated, the Trustees will consider at that
time the manner in which to treat such expenses. The Distributor has advised the
Fund that such excess amounts, including carrying charges, totaled $65,558,633
at September 30, 1996.
The Distributor has informed the Fund that for the six months ended September
30, 1996, it received approximately $1,873,000 in contingent deferred sales
charges from certain redemptions of the Fund's shares.
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, 1996 aggregated
$529,330,271 and $394,784,447, respectively.
For the six months ended September 30, 1996, the Fund incurred brokerage
commissions of $92,250 with DWR 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, 1996, the Fund had
transfer agent fees and expenses payable of approximately $263,000.
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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (UNAUDITED) CONTINUED
the last five years of service. Aggregate pension costs for the six months ended
September 30, 1996 included in Trustees' fees and expenses in the Statement of
Operations amounted to $2,150. At September 30, 1996, the Fund had an accrued
pension liability of $27,810 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 FOR THE YEAR
MONTHS ENDED ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
(UNAUDITED)
Sold............................................................. 22,525,561 $ 291,188,688 46,573,003 $566,276,970
Reinvestment of dividends and distributions...................... 7,320,481 93,815,571 8,465,778 101,615,413
----------- -------------- ----------- ------------
29,846,042 385,004,259 55,038,781 667,892,383
Repurchased...................................................... (12,791,453) (164,998,779) (28,302,433) (342,997,460)
----------- -------------- ----------- ------------
Net increase..................................................... 17,054,589 $ 220,005,480 26,736,348 $324,894,923
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
Currency losses incurred after October 31 ("post October losses") within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net currency losses of
approximately $76,000 during fiscal 1996.
As of March 31, 1996, 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 ("PFICs") and permanent
book/tax differences primarily attributable to tax adjustments on PFICs sold by
the Fund.
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, 1996, there were outstanding forward contracts 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 inability 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 FOR THE PERIOD
ENDED SEPTEMBER 30, FOR THE YEAR FOR THE YEAR JUNE 30, 1993*
1996 ENDED MARCH 31, ENDED MARCH 31, THROUGH MARCH
(UNAUDITED) 1996 1995 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period............................ $ 12.86 $ 11.41 $ 10.81 $ 10.00
------ ------ ------ ------
Net investment income.............. 0.10 0.13 0.14 0.05
Net realized and unrealized gain... 0.59 1.96 0.88 0.84
------ ------ ------ ------
Total from investment operations... 0.69 2.09 1.02 0.89
------ ------ ------ ------
Less dividends and distributions
from:
Net investment income........... (0.05) (0.15) (0.14) (0.05)
Net realized gain............... (0.47) (0.49) (0.28) (0.03)
------ ------ ------ ------
Total dividends and
distributions..................... (0.52) (0.64) (0.42) (0.08)
------ ------ ------ ------
Net asset value, end of period..... $ 13.03 $ 12.86 $ 11.41 $ 10.81
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN+........... 5.40%(1) 18.77% 9.60% 8.89%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.77%(2) 1.85% 1.97% 2.03%(2)
Net investment income.............. 1.62%(2) 1.05% 1.22% 0.66%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in
millions.......................... $2,688 $2,434 $1,854 $1,121
Portfolio turnover rate............ 16%(1) 40% 32% 21%(1)
Average commission rate paid....... $0.0332 $0.0311 -- --
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
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
DEAN WITTER
GLOBAL DIVIDEND
GROWTH SECURITIES
[GRAPHIC]
SEMIANNUAL REPORT
SEPTEMBER 30, 1996
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.
