<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES TWO WORLD TRADE CENTER, NEW YORK,
NEW YORK 10048
LETTER TO THE SHAREHOLDERS MARCH 31, 1997
DEAR SHAREHOLDER:
Once again, we are pleased to report that the most recent twelve-month period
has been a rewarding one for global investors, with most developed world equity
markets recording double-digit returns. This was the result of a very favorable
economic environment in which relatively benign inflation and low interest rates
throughout the world's largest markets led to greater earnings growth for
companies operating in those countries.
PERFORMANCE AND PORTFOLIO
For the twelve-month period ended March 31, 1997, Dean Witter Global Dividend
Growth Securities provided a total return of 12.58 percent compared to 7.68
percent for the Morgan Stanley Capital International World Index (MSCI World
Index) and 11.85 percent for the Lipper Global Funds Index. Since inception
(June 30, 1993), the Fund's total return was 59.58 percent versus 44.49 percent
for the MSCI World Index and 58.62 percent for the Lipper Global Funds Index.
The accompanying chart illustrates the growth of a $10,000 investment in the
Fund at inception through the fiscal year ended March 31, 1997, versus similar
investments in the MSCI World Index and the Lipper Global Funds 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 and well diversified, with 122
equity issues spread across the world's twelve largest markets as defined by
market capitalization. The United States, the world's largest market, continues
to be the Fund's largest target weighting, at approximately 30 percent of total
net assets spread among 19 stocks. Although U.S. stocks have experienced large
runups, there continue to be attractive long-term investment opportunities, and
we remain very
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1997, CONTINUED
optimistic about the long-term growth potential of high-quality U.S. common
stocks. Recent U.S. additions to the Fund include Ashland, Inc., Dow Chemical
Co. and AT&T Corp.
Japan, the world's second-largest capital market, continues to be a significant
component of the Fund, at approximately 25 percent of total net assets. Last
year, our bullish outlook for Japanese stocks was driven primarily by attractive
valuations in some market sectors, especially the automobile and electronics
industries. These industries did indeed enjoy modest share price gains, despite
an overall decline in the Nikkei 225 Index of Japanese stocks. These exporters
derive much of their revenues from non-Japanese consumers and thus reaped
additional earnings growth from the weak yen. That
currency's weakness has dramatically
enhanced the profitability of the large
Japanese exporters, an area where the
Fund has significant exposure. While
there is still plenty of pessimism
surrounding Japanese stocks in general,
we are finding many world-class
Japanese companies selling at very
attractive prices, which we believe may
offer significant rewards for patient
and disciplined long-term investors.
The Fund's target allocation to Europe
is 33 percent: the United Kingdom (10.0
percent), France (7.5 percent), Germany
(6.5 percent), Italy (4.0 percent), the
Netherlands (3.0 percent) and
Switzerland (2.0 percent). Share prices
of utility stocks in the U.K. have
fallen dramatically on fears that a new
Labor Party government will tighten
regulation of utilities and impose a
"windfall tax" on profits. However
likely these events may be, the current
valuation of utility stocks seems to
overdiscount the actual impact such a
tax would have on longer-term earnings
growth. Consistent with this view, the
Fund initiated two new positions in the
utility industry in the U.K. with
purchases of National Power PLC and
National Grid Group PLC.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1997, CONTINUED
An additional benefit to this strategy is the defensive characteristic that
utility stocks have historically possessed.
There are several important reasons why the Fund is currently overweighted in
Europe overall. Most significantly, many high-quality European companies are
more attractively valued than their U.S. counterparts. In addition, because
Europe's business cycle lags that of the U.S., they may be poised for a period
of better earnings growth and superior shareholder returns.
One of the most significant long-term developments in Europe is the possibility
of economic unification. As Europe moves toward a common currency, to be called
the Euro, governments will continue to maintain favorable monetary and fiscal
policies in an effort to stimulate economic growth. The Euro should increase
efficiency and reduce currency risks for companies in participating countries,
thereby increasing their competitive position within the global economy.
European companies are also far behind their U.S. counterparts in both the
breadth and magnitude of restructuring through downsizing, spinoffs and mergers,
all of which are designed to enhance shareholder returns. With the bulk of these
returns yet to be realized, the Fund's strategic overweighting in Europe seems
prudent. Recent additions to the Fund's European holdings include Siemens AG and
MAN AG in Germany, Compagnie de Saint-Gobain and Lafarge S.A. in France, and KLM
Royal Dutch Air Lines NV and Koninklijke Hoogovens NV in the Netherlands.
Switzerland remains modestly underweighted (2 percent of net assets versus 3.7
percent for the MSCI World Index), due to a lack of attractive valuations there.
In the Pacific Rim, one of the biggest developments of the second half of this
century is about to occur. On July 1, 1997, the island country of Hong Kong will
revert back to China after 100 years of British rule. This will be celebrated
with much fanfare and perhaps hints of trepidation. The Fund remains optimistic
about the success of the transition and is targeting 4 percent of net assets to
high-quality companies positioned to benefit from these changes.
Malaysia (1.5 percent of net assets) is the only other market in the Pacific Rim
where the Fund is invested. Companies participating in the development of the
region's infrastructure continue to offer excellent profit growth potential at
reasonable valuations. Our exposure to the resource-oriented markets of
Australia (1.5 percent) and Canada (3.0 percent) offers risk reduction through
diversification, as well as growth potential in economically stable countries.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1997, 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 securities markets of most of the world's major countries is
favorable and that the stocks of well-established large-capitalization
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.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1997
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS AND RIGHTS (97.1%)
AUSTRALIA (1.6%)
BANKING
1,910,000 Australia & New Zealand Banking
Group, Ltd.................... $ 12,122,465
-----------------
BUILDING & CONSTRUCTION
4,720,000 Pioneer International Ltd....... 16,287,311
-----------------
MULTI-INDUSTRY
1,717,000 Southcorp Holdings Ltd.......... 5,799,425
-----------------
PAPER & FOREST PRODUCTS
2,360,000 Amcor Ltd....................... 15,200,996
-----------------
TOTAL AUSTRALIA................. 49,410,197
-----------------
CANADA (2.9%)
BANKING
680,000 Toronto Dominion Bank........... 17,135,018
-----------------
NATURAL GAS
960,000 TransCanada Pipelines Ltd....... 17,432,491
-----------------
OIL RELATED
399,600 Imperial Oil Ltd................ 18,551,827
605,600 IPL Energy, Inc................. 17,446,527
-----------------
35,998,354
-----------------
TELECOMMUNICATIONS
376,000 BCE, Inc........................ 17,266,137
-----------------
TOTAL CANADA.................... 87,832,000
-----------------
FRANCE (7.6%)
BANKING
161,000 Societe Generale................ 18,763,372
-----------------
BUILDING MATERIALS
125,000 Compagnie de Saint-Gobain....... 18,862,912
290,000 Lafarge S.A..................... 20,021,608
-----------------
38,884,520
-----------------
FINANCIAL SERVICES
40,135 Societe Eurafrance S.A.......... 18,823,500
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
FOODS & BEVERAGES
119,000 Eridania Beghin-Say S.A......... $ 18,653,029
-----------------
MULTI-INDUSTRY
65,000 Compagnie Generale d'Industrie
et de Participations.......... 19,916,755
74,800 Saint-Louis..................... 19,064,329
286,943 Worms et Compagnie.............. 18,539,994
-----------------
57,521,078
-----------------
OIL INTEGRATED - INTERNATIONAL
192,200 Elf Aquitaine S.A............... 19,642,118
231,000 Total S.A. (B Shares)........... 19,920,988
-----------------
39,563,106
-----------------
TELECOMMUNICATIONS
163,000 Alcatel Alsthom................. 19,573,858
-----------------
TELEVISION
198,000 Societe Television Francaise
1............................. 19,743,890
-----------------
TOTAL FRANCE.................... 231,526,353
-----------------
GERMANY (6.7%)
BANKING
271,000 Deutsche Bank
Aktiengesellschaft............ 15,187,645
-----------------
BUILDING & CONSTRUCTION
375,500 Bilfinger & Berger Bau AG....... 14,634,527
-----------------
CHEMICALS
386,000 BASF AG......................... 14,513,876
356,000 Bayer AG........................ 14,745,688
-----------------
29,259,564
-----------------
ELECTRICAL EQUIPMENT
270,000 Siemens AG...................... 14,487,019
-----------------
MACHINERY - DIVERSIFIED
51,500 MAN AG.......................... 14,723,068
-----------------
MULTI-INDUSTRY
53,200 Preussag AG..................... 14,320,024
334,000 RWE AG.......................... 14,841,122
31,400 Viag AG......................... 14,767,651
-----------------
43,928,797
-----------------
RETAIL - DEPARTMENT STORES
42,100 Karstadt AG..................... 14,410,236
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1997, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
RETAIL - SPECIALTY
317,000 Douglas Holding AG.............. $ 11,711,310
-----------------
STEEL & IRON
65,000 Thyssen AG...................... 14,606,088
-----------------
TEXTILES - APPAREL
11,540 Hugo Boss AG (Pref.)............ 15,703,492
-----------------
UTILITIES - ELECTRIC
255,000 Veba AG......................... 14,374,664
-----------------
TOTAL GERMANY................... 203,026,410
-----------------
HONG KONG (3.9%)
BANKING
1,000,000 HSBC Holdings PLC............... 23,230,003
-----------------
CONGLOMERATES
3,195,000 Swire Pacific Ltd. (Class A).... 25,152,286
-----------------
REAL ESTATE
2,700,000 Cheung Kong (Holdings) Ltd...... 23,781,715
-----------------
TELECOMMUNICATIONS
13,390,000 Hong Kong Telecommunications
Ltd........................... 22,896,717
-----------------
UTILITIES - ELECTRIC
6,793,000 Hong Kong Electric Holdings
Ltd........................... 23,977,047
-----------------
TOTAL HONG KONG................. 119,037,768
-----------------
ITALY (4.0%)
FINANCIAL SERVICES
2,860,000 Istituto Mobiliare Italiano
SpA........................... 24,734,904
-----------------
OIL INTEGRATED - INTERNATIONAL
4,700,000 Ente Nazionale Idrocarburi
SpA........................... 23,766,408
-----------------
TELECOMMUNICATIONS
3,871,000 Sirti SpA....................... 23,870,397
11,550,000 Telecom Italia SpA.............. 24,498,956
-----------------
48,369,353
-----------------
TEXTILES - APPAREL
2,089,500 Benetton Group SpA.............. 25,869,406
-----------------
TOTAL ITALY..................... 122,740,071
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
JAPAN (25.2%)
AUTOMOTIVE
1,280,000 Honda Motor Co.................. $ 38,158,022
1,548,000 Toyota Motor Corp............... 39,143,965
-----------------
77,301,987
-----------------
BREWERS
4,615,000 Kirin Brewery Co., Ltd.......... 38,029,569
-----------------
BUILDING MATERIALS
3,845,000 Sekisui House Ltd............... 37,586,444
-----------------
COMPUTER SERVICES
2,572,000 NCR Japan Ltd................... 19,635,967
-----------------
ELECTRONICS & ELECTRICAL
4,385,000 Hitachi, Ltd.................... 38,968,331
675,000 Kyocera Corp.................... 38,281,629
2,445,000 Matsushita Electric Industrial
Co., Ltd...................... 38,122,879
4,182,000 Matsushita Electric Works....... 38,177,896
3,352,000 NEC Corp........................ 37,912,425
3,178,000 Sharp Corp...................... 37,741,638
545,000 Sony Corp....................... 38,085,717
558,000 TDK Corp........................ 38,317,984
-----------------
305,608,499
-----------------
ENTERTAINMENT & LEISURE TIME
2,341,000 Mizuno Corp..................... 13,049,685
519,000 Nintendo Corp., Ltd............. 37,107,368
-----------------
50,157,053
-----------------
FOODS & BEVERAGES
1,018,000 House Food Industry............. 12,829,860
3,407,000 Snow Brand Milk Products........ 16,459,735
-----------------
29,289,595
-----------------
MACHINERY
6,810,000 Mitsubishi Electric Corp........ 38,236,791
5,505,000 Mitsubishi Heavy Industries,
Ltd........................... 35,801,624
-----------------
74,038,415
-----------------
PHARMACEUTICALS
1,609,000 Taisho Pharmaceutical Co.,
Ltd........................... 37,566,731
1,775,000 Takeda Chemical Industries...... 37,140,491
-----------------
74,707,222
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1997, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
TOBACCO
3,085 Japan Tobacco, Inc.............. $ 20,486,912
-----------------
TRANSPORTATION
3,870,000 Yamato Transport Co., Ltd....... 38,143,480
-----------------
TOTAL JAPAN..................... 764,985,143
-----------------
MALAYSIA (1.5%)
BANKING
1,669,000 AMMB Holdings Berhad............ 13,870,179
1,669,000 AMMB Holdings Berhad - Bond
Rights*....................... 215,459
1,669,000 AMMB Holdings Berhad - Loan
Stock Rights*................. 161,594
-----------------
14,247,232
-----------------
BUILDING & CONSTRUCTION
1,717,000 United Engineers Malaysia
Berhad........................ 14,961,756
-----------------
CONGLOMERATES
4,077,000 Sime Darby Berhad............... 14,884,965
-----------------
TOTAL MALAYSIA.................. 44,093,953
-----------------
NETHERLANDS (3.0%)
BANKING
166,000 ABN-AMRO Holding NV............. 11,400,128
-----------------
CHEMICALS
113,000 DSM NV.......................... 11,393,846
-----------------
ELECTRICAL EQUIPMENT
246,100 Philips Electronics NV.......... 11,463,879
-----------------
INSURANCE
295,000 Fortis Amev NV.................. 11,480,249
-----------------
OIL INTEGRATED - INTERNATIONAL
63,000 Royal Dutch Petroleum Co........ 11,423,445
-----------------
STEEL
219,000 Koninklijke Hoogovens NV........ 10,819,421
-----------------
TELECOMMUNICATIONS
298,000 Koninklijke PTT Nederland NV.... 11,025,873
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
TEXTILES
33,000 Gamma Holding NV................ $ 1,871,007
-----------------
TRANSPORTATION
354,000 KLM Royal Dutch Air Lines NV.... 10,553,663
-----------------
TOTAL NETHERLANDS............... 91,431,511
-----------------
SWITZERLAND (2.1%)
BANKING
99,100 Swiss Bank Corp................. 21,045,062
-----------------
FOODS & BEVERAGES
17,900 Nestle AG....................... 20,829,765
-----------------
HEALTH & PERSONAL CARE
17,193 Novartis AG-Bearer.............. 21,289,399
-----------------
TOTAL SWITZERLAND............... 63,164,226
-----------------
UNITED KINGDOM (10.2%)
BANKING
1,110,000 Hambros PLC..................... 4,290,905
1,662,000 National Westminster Bank PLC... 18,879,539
2,250,000 Royal Bank of Scotland Group
PLC........................... 19,791,135
-----------------
42,961,579
-----------------
BREWERS
1,405,000 Bass PLC........................ 18,721,808
-----------------
ENERGY
706,100 Energy Group PLC*............... 5,875,486
-----------------
FOODS & BEVERAGES
5,050,000 Hazlewood Foods PLC............. 9,512,685
6,232,000 Hillsdown Holdings PLC.......... 19,599,391
-----------------
29,112,076
-----------------
LEISURE
2,610,000 Rank Group PLC.................. 18,126,763
-----------------
MULTI-INDUSTRY
882,625 Hanson PLC...................... 4,149,273
-----------------
NATURAL GAS
7,245,000 BG PLC.......................... 19,225,042
-----------------
RETAIL - MERCHANDISING
3,465,000 Tesco PLC....................... 19,864,845
-----------------
STEEL & IRON
7,473,000 British Steel PLC............... 19,952,461
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1997, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
2,627,000 British Telecommunications
PLC........................... $ 19,191,496
-----------------
TOBACCO
2,330,000 B.A.T. Industries PLC........... 19,731,512
-----------------
UTILITIES - ELECTRIC
4,445,000 National Grid Group PLC......... 15,217,102
2,375,000 National Power PLC.............. 18,984,420
3,305,000 Scottish Hydro-Electric PLC..... 19,488,924
-----------------
53,690,446
-----------------
UTILITIES - WATER
1,430,000 Hyder PLC....................... 18,457,639
1,350,000 Hyder PLC (Pref.)............... 2,305,280
1,620,000 Severn Trent PLC................ 18,389,171
-----------------
39,152,090
-----------------
TOTAL UNITED KINGDOM............ 309,754,877
-----------------
UNITED STATES (28.4%)
AEROSPACE & DEFENSE
605,000 Northrop Grumman Corp........... 45,753,125
-----------------
AUTOMOTIVE
1,465,000 Ford Motor Co................... 45,964,375
-----------------
BANKING
448,000 BankAmerica Corp................ 45,136,000
927,000 KeyCorp......................... 45,191,250
-----------------
90,327,250
-----------------
CHEMICALS
559,000 Dow Chemical Co................. 44,720,000
-----------------
COMPUTERS
337,000 International Business Machines
Corp.......................... 46,295,375
-----------------
CONGLOMERATES
547,000 Minnesota Mining & Manufacturing
Co............................ 46,221,500
1,185,000 Tenneco, Inc.................... 46,215,000
-----------------
92,436,500
-----------------
HEALTH & PERSONAL CARE
719,000 Bristol-Myers Squibb Co......... 42,421,000
-----------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
MACHINERY - DIVERSIFIED
1,053,000 Deere & Co...................... $ 45,805,500
-----------------
METALS & MINING
628,000 Phelps Dodge Corp............... 45,922,500
-----------------
OIL - DOMESTIC
1,130,300 Ashland, Inc.................... 45,494,575
-----------------
OIL INTEGRATED - INTERNATIONAL
667,000 Chevron Corp.................... 46,439,875
-----------------
PAPER & FOREST PRODUCTS
1,130,000 International Paper Co.......... 43,928,750
-----------------
RETAIL - MERCHANDISING
1,080,700 Dayton-Hudson Corp.............. 45,119,225
-----------------
TELECOMMUNICATIONS
995,000 Sprint Corp..................... 45,272,500
-----------------
TELEPHONES
1,305,100 AT&T Corp....................... 45,352,225
-----------------
TIRE & RUBBER GOODS
881,000 Goodyear Tire & Rubber Co....... 46,032,250
-----------------
TOBACCO
398,000 Philip Morris Companies, Inc.... 45,421,750
-----------------
TOTAL UNITED STATES............. 862,706,775
-----------------
TOTAL COMMON AND PREFERRED
STOCKS AND RIGHTS
(IDENTIFIED COST
$2,622,439,364)................. 2,949,709,284
-----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- -------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (a) (3.5%)
COMMERCIAL PAPER (1.6%)
FINANCE - CONSUMER (0.8%)
$ 25,000 American Express Credit Corp.
5.38% due 04/02/97............ 24,996,264
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1997, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
FINANCE - DIVERSIFIED (0.8%)
$ 25,000 General Electric Capital Corp.
5.60% due 04/04/97............ $ 24,988,333
-----------------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $49,984,597).... 49,984,597
-----------------
U.S. GOVERNMENT AGENCY (1.9%)
56,500 Federal Home Loan Mortgage Corp.
6.50% due 04/01/97 (Amortized
Cost $56,500,000)............. 56,500,000
-----------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $106,484,597)... 106,484,597
-----------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,728,923,961) (B)..... 100.6% 3,056,193,881
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS................................... (0.6) (17,702,793)
------ --------------
NET ASSETS............................... 100.0% $3,038,491,088
------ --------------
------ --------------
<FN>
- ---------------------
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates shown
have 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 is $440,444,453 and the
aggregate gross unrealized depreciation is $113,174,533, resulting in net
unrealized appreciation of $327,269,920.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT MARCH 31, 1997:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -----------------------------------------------------------------
<S> <C> <C> <C>
$ 3,648,730 AUD 4,632,131 04/01/97 $(10,191)
$ 2,470,327 L 1,528,857 04/01/97 33,941
ITL 2,693,679,645 $ 1,594,790 04/01/97 (12,418)
$ 700,510 Y 86,548,000 04/01/97 (1,302)
$ 6,141,677 Y 759,786,850 04/01/97 (3,473)
NLG 2,630,362 $ 1,379,609 04/01/97 (20,712)
$ 1,732,535 AUD 2,213,113 04/02/97 5,865
L 421,231 $ 680,751 04/02/97 (9,225)
ITL 3,254,333,622 $ 1,930,095 04/02/97 (11,631)
$ 3,167,433 Y 391,336,307 04/02/97 (5,886)
NLG 4,012,432 $ 2,118,496 04/02/97 (17,594)
AUD 846,759 $ 663,012 04/03/97 (2,117)
$ 763,757 CAD 1,054,749 04/03/97 (2,206)
$ 1,148,106 Y 141,827,880 04/03/97 (2,300)
$ 3,922,763 NLG 7,392,055 04/03/97 12,530
AUD 1,115,612 $ 871,460 04/04/97 (4,853)
$ 1,765,997 ITL 2,956,543,100 04/04/97 (1,949)
AUD 3,755,871 $ 2,941,035 04/07/97 (9,202)
DEM 1,257,390 $ 749,786 04/07/97 (671)
L 24,058 $ 39,249 04/07/97 (158)
FRF 5,835,183 $ 1,034,423 04/30/97 916
$ 1,274,013 FRF 7,236,650 04/30/97 7,717
---------------
Net unrealized depreciation.................. $(54,919)
---------------
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS MARCH 31, 1997
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------------------------------
<S> <C> <C>
Aerospace & Defense..................... $ 45,753,125 1.5%
Automotive.............................. 123,266,362 4.1
Banking................................. 266,419,754 8.8
Brewers................................. 56,751,377 1.9
Building & Construction................. 45,883,594 1.5
Building Materials...................... 76,470,964 2.5
Chemicals............................... 85,373,410 2.8
Computer Services....................... 19,635,967 0.6
Computers............................... 46,295,375 1.5
Conglomerates........................... 132,473,751 4.4
Electrical Equipment.................... 25,950,898 0.9
Electronics & Electrical................ 305,608,499 10.1
Energy.................................. 5,875,486 0.2
Entertainment & Leisure Time............ 50,157,053 1.6
Finance - Consumer...................... 24,996,264 0.8
Finance - Diversified................... 24,988,333 0.8
Financial Services...................... 43,558,404 1.4
Foods & Beverages....................... 97,884,465 3.2
Health & Personal Care.................. 63,710,399 2.1
Insurance............................... 11,480,249 0.4
Leisure................................. 18,126,763 0.6
Machinery............................... 74,038,415 2.4
Machinery - Diversified................. 60,528,568 2.0
Metals & Mining......................... 45,922,500 1.5
Multi-Industry.......................... 111,398,573 3.7
Natural Gas............................. 36,657,533 1.2
Oil - Domestic.......................... 45,494,575 1.5
Oil Integrated - International.......... 121,192,834 4.0
Oil Related............................. 35,998,354 1.2
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------------------------------
<S> <C> <C>
Paper & Forest Products................. $ 59,129,746 1.9%
Pharmaceuticals......................... 74,707,222 2.5
Real Estate............................. 23,781,715 0.8
Retail - Department Stores.............. 14,410,236 0.5
Retail - Merchandising.................. 64,984,070 2.1
Retail - Specialty...................... 11,711,310 0.4
Steel................................... 10,819,421 0.4
Steel & Iron............................ 34,558,549 1.1
Telecommunications...................... 183,595,934 6.0
Telephones.............................. 45,352,225 1.5
Television.............................. 19,743,890 0.6
Textiles................................ 1,871,007 0.1
Textiles - Apparel...................... 41,572,898 1.4
Tire & Rubber Goods..................... 46,032,250 1.5
Tobacco................................. 85,640,174 2.8
Transportation.......................... 48,697,143 1.6
U.S. Government Agency.................. 56,500,000 1.9
Utilities - Electric.................... 92,042,157 3.0
Utilities - Water....................... 39,152,090 1.3
-------------- -----
$3,056,193,881 100.6%
-------------- -----
-------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- --------------------------------------------------------------------
<S> <C> <C>
Common Stocks........................... $2,931,323,459 96.5%
Preferred Stocks........................ 18,008,772 0.6
Rights.................................. 377,053 0.0
Short-Term Investments.................. 106,484,597 3.5
-------------- -----
$3,056,193,881 100.6%
-------------- -----
-------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $2,728,923,961).......................... $3,056,193,881
Cash........................................................ 829,422
Receivable for:
Investments sold........................................ 30,669,387
Dividends............................................... 8,912,805
Shares of beneficial interest sold...................... 7,093,490
Foreign withholding taxes reclaimed..................... 2,550,241
Interest................................................ 29,191
Deferred organizational expenses............................ 45,054
Prepaid expenses and other assets........................... 37,907
--------------
TOTAL ASSETS........................................... 3,106,361,378
--------------
LIABILITIES:
Payable for:
Investments purchased................................... 59,929,183
Shares of beneficial interest repurchased............... 2,632,036
Plan of distribution fee................................ 2,145,495
Investment management fee............................... 1,848,077
Accrued expenses and other payables......................... 1,315,499
--------------
TOTAL LIABILITIES...................................... 67,870,290
--------------
NET ASSETS:
Paid-in-capital............................................. 2,576,452,218
Net unrealized appreciation................................. 327,055,942
Accumulated undistributed net investment income............. 15,457
Accumulated undistributed net realized gain................. 134,967,471
--------------
NET ASSETS............................................. $3,038,491,088
--------------
--------------
NET ASSET VALUE PER SHARE,
228,383,365 SHARES OUTSTANDING (UNLIMITED SHARES
AUTHORIZED OF $.01 PAR VALUE).............................
$13.30
--------------
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $7,080,281 foreign withholding tax)....... $ 70,324,634
Interest.................................................... 2,749,027
------------
TOTAL INCOME........................................... 73,073,661
------------
EXPENSES
Plan of distribution fee.................................... 22,941,076
Investment management fee................................... 19,649,426
Transfer agent fees and expenses............................ 3,068,550
Custodian fees.............................................. 1,551,559
Registration fees........................................... 246,886
Shareholder reports and notices............................. 179,893
Professional fees........................................... 73,525
Organizational expenses..................................... 36,058
Trustees' fees and expenses................................. 21,108
Other....................................................... 38,946
------------
TOTAL EXPENSES......................................... 47,807,027
------------
NET INVESTMENT INCOME.................................. 25,266,634
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. 255,839,635
Foreign exchange transactions........................... (251,928)
------------
NET GAIN............................................... 255,587,707
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................. 39,226,407
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ (40,049)
------------
NET APPRECIATION....................................... 39,186,358
------------
NET GAIN............................................... 294,774,065
------------
NET INCREASE................................................ $320,040,699
------------
------------
</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 YEAR FOR THE YEAR
ENDED ENDED
MARCH 31,1997 MARCH 31, 1996
- --------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 25,266,634 $ 22,314,052
Net realized gain........................................... 255,587,707 127,041,313
Net change in unrealized appreciation....................... 39,186,358 215,212,383
-------------- --------------
NET INCREASE........................................... 320,040,699 364,567,748
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (27,883,886) (25,446,868)
Net realized gain........................................... (201,225,779) (83,961,762)
-------------- --------------
TOTAL.................................................. (229,109,665) (109,408,630)
-------------- --------------
Net increase from transactions in shares of beneficial
interest.................................................. 513,559,240 324,894,923
-------------- --------------
NET INCREASE........................................... 604,490,274 580,054,041
NET ASSETS:
Beginning of period......................................... 2,434,000,814 1,853,946,773
-------------- --------------
END OF PERIOD
(INCLUDING ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
OF $15,457 AND DIVIDENDS IN EXCESS OF NET INVESTMENT INCOME
OF $2,223,051, RESPECTIVELY)............................... $3,038,491,088 $2,434,000,814
-------------- --------------
-------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997
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 pursuant to procedures
adopted 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 Dean Witter InterCapital Inc. (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 MARCH 31, 1997, 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 MARCH 31, 1997, 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 -- 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 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 determined at the close of
each business day: 0.75% to the portion of daily net assets not exceeding $1
billion; 0.725% to the portion of daily net assets exceeding $1 billion but not
exceeding $1.5 billion; and 0.70% to the portion of daily net assets exceeding
$1.5 billion. Effective May 1, 1996, the Agreement was amended to reduce the
annual fee to 0.675% to the portion of daily net assets exceeding $2.5 billion
but not exceeding $3.5 billion. Effective May 1, 1997, the Agreement was again
amended to reduce the annual fee to 0.65% to the portion of daily net assets in
excess of $3.5 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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997, CONTINUED
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
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 $69,361,411
at March 31, 1997.
The Distributor has informed the Fund that for the year ended March 31, 1997, it
received approximately $3,917,000 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 year ended March 31, 1997 aggregated
$1,323,786,773 and $1,079,499,286, respectively.
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997, CONTINUED
For the year ended March 31, 1997, the Fund incurred brokerage commissions of
$169,351 with DWR for portfolio transactions executed on behalf of the Fund. At
March 31, 1997, included in the Fund's payable for investments purchased and
receivable for investments sold were unsettled trades with DWR of $1,187,200 and
$1,423,578, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At March 31, 1997, the Fund had
transfer agent fees and expenses payable of approximately $527,000.
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 year ended March 31, 1997 included
in Trustees' fees and expenses in the Statement of Operations amounted to
$4,263. At March 31, 1997, the Fund had an accrued pension liability of $28,923
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 YEAR FOR THE YEAR
ENDED ENDED
MARCH 31, 1997 MARCH 31, 1996
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 51,442,695 $ 677,741,563 46,573,003 $566,276,970
Reinvestment of dividends and distributions...................... 16,426,517 213,686,419 8,465,778 101,615,413
----------- -------------- ----------- ------------
67,869,212 891,427,982 55,038,781 667,892,383
Repurchased...................................................... (28,703,758) (377,868,742) (28,302,433) (342,997,460)
----------- -------------- ----------- ------------
Net increase..................................................... 39,165,454 $ 513,559,240 26,736,348 $324,894,923
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
Foreign 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 foreign
currency losses of approximately $1,000 during fiscal 1997.
As of March 31, 1997, 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
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997, CONTINUED
PFICs sold by the Fund. To reflect reclassifications arising from permanent
book/tax differences for the year ended March 31, 1997, accumulated
undistributed net realized gain was charged $4,855,760 and accumulated
undistributed net investment income was credited $4,855,760.
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.
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.
At March 31, 1997, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
<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
PERIOD
JUNE 30,
1993*
FOR THE YEAR ENDED MARCH 31 THROUGH
------------------------------- MARCH 31,
1997 1996 1995 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.............. 0.12 0.13 0.14 0.05
Net realized and unrealized gain... 1.44 1.96 0.88 0.84
--------- --------- --------- ---------
Total from investment operations... 1.56 2.09 1.02 0.89
--------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... (0.13) (0.15) (0.14) (0.05)
Net realized gain............... (0.99) (0.49) (0.28) (0.03)
--------- --------- --------- ---------
Total dividends and
distributions..................... (1.12) (0.64) (0.42) (0.08)
--------- --------- --------- ---------
Net asset value, end of period..... $ 13.30 $ 12.86 $ 11.41 $ 10.81
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 12.58% 18.77% 9.60% 8.89%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 1.75% 1.85% 1.97% 2.03%(2)
Net investment income.............. 0.93% 1.05% 1.22% 0.66%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in
millions.......................... $3,038 $2,434 $1,854 $1,121
Portfolio turnover rate............ 40% 40% 32% 21%(1)
Average commission rate paid....... $0.0289 $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>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Global Dividend Growth
Securities (the "Fund") at March 31, 1997, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the three years in
the period then ended and for the period June 30, 1993 (commencement of
operations) through March 31, 1994, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 1997 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
MAY 16, 1997
- --------------------------------------------------------------------------------
1997 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended March 31, 1997, the Fund paid to
shareholders $0.85 per share from long-term capital gains. For
such period, 36.38% of the ordinary dividends qualified for the
dividends received deduction available to corporations. For the
year ended March 31, 1997, the Fund has elected, pursuant to
Section 853 of the Internal Revenue Code, to pass-through foreign
taxes of $0.03 per share to its shareholders. The Fund generated
net foreign source income of $0.09 per share with respect to this
election.
<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
Barry Fink
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
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]
ANNUAL REPORT
MARCH 31, 1997
<PAGE>
DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
GROWTH OF $10,000
DATE TOTAL MSCI LIPPER
June 30, 1993 $10000 $10000 $10000
March 31, 1994 $10889 $10572 $11687
March 31, 1995 $11935 $11364 $11695
March 31, 1996 $14175 $13418 $14182
March 31, 1997 $15758 (3) $14449 $15862
AVERAGE ANNUAL TOTAL RETURNS
1 year LIFE OF FUND
12.58 (1) 13.27 (1)
7.58 (2) 12.89 (2)
___ Fund ___ MSCI WORLD IX (4) ___ LIPPER (5)
Past performance is not predictive of future returns.
________________________________________
(1) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
(2) Figure shown assumes the deduction of the maximum applicable
contingent deferred sales charge (CDSC) (One year-5%, since
inception 2%). See the Fund's current prospectus for complete
details on fees and sales charges.
(3) Closing value after the deduction of a 2% CDSC, assuming a complete
redemption on March 31, 1997.
(4) The Morgan Stanley Capital International World Index (MSCI)
measures performance for a diverse range of global stock markets
including the U.S., Canada, Europe, Australia, New Zealand and the
Far East. The index does not include any expenses, fees or
charges or reinvestment of dividends. The Index is unmanaged and
should not be considered an investment.
(5) The Lipper Global Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the
Lipper Global Funds objective. The Index, which is adjusted for
capital gains distributions and income dividends, is unmanaged and
should not be considered an investment. There are currently 30
funds represented in this index.
