<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND TWO WORLD TRADE CENTER,
GROWTH SECURITIES NEW YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1999
DEAR SHAREHOLDER:
The six-month period ended September 30, 1999 may have marked the beginning of a
new period of outperformance by the international equity markets. After several
years of strong returns from the U.S. stock market, events of the last six
months suggest a change in leadership may be afoot. Not only have emerging
markets performed well, but many developed markets in Europe and Asia have
outperformed also. While the factors that drive the direction of stock prices
are constantly changing, we remain optimistic about the favorable long-term
prospects for the high-quality companies sought out by Morgan Stanley Dean
Witter Global Dividend Growth Securities.
PERFORMANCE
For the six-month period ended September 30, 1999, the Fund's Class B shares
posted a total return of 7.86 percent, compared with 3.39 percent for the Morgan
Stanley Capital International World Index (MSCI World Index) and 5.82 percent
for the Lipper Global Fund Index. During the same period, the Fund's Class A, C
and D shares posted total returns of 8.13 percent, 7.69 percent and 8.32
percent, respectively. The performance of the Fund's four share classes varies
because each class has different expenses. (Total return figures shown assume
the reinvestment of all distributions and do not reflect the deduction of any
applicable sales charges.)
The Fund's emphasis on perceived high-quality industry leaders and its
disciplined management style proved advantageous during this somewhat volatile
period, as the Fund significantly outperformed both its benchmark index and
Lipper peer group.
THE UNITED STATES
The U.S. equity market lagged other world markets in the last six months. The
Standard & Poor's 500 Composite Stock Price Index (S&P 500) was up 0.37 percent
compared to 7.18 percent for the MSCI
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1999, CONTINUED
Europe, Australia and Far East (EAFE) index. As the world's largest economy, the
U.S. continues to represent the largest portion of the Fund's portfolio, with 31
percent of the Fund's net assets targeted toward U.S. stocks. This represents a
significant underweighting of the U.S. relative to its 50 percent weighting in
the MSCI World Index. With U.S. equity valuations near all-time highs on most
measures, we have taken the opportunity to sell some U.S. equity holdings,
further reducing our U.S. exposure. This move has proved fortuitous in the last
six months and we believe non-U.S. markets are likely to continue to perform
better in the near future.
JAPAN
The Japanese equity market tops the list as the world's best-performing
developed-country market in which the Fund was invested during the period under
review. The MSCI Japan Index returned 24.7 percent in U.S. dollars, far
exceeding most investors' expectations.
One year ago, we described the extreme level of pessimism evident among Japanese
consumers and business people. Many measures of economic activity highlighted
the severely depressed state of the Japanese economy and many observers warned
of a deflationary spiral. We also wrote that during periods of extreme
pessimism, opportunities exist to buy some of the world's greatest companies for
very attractive prices. For the disciplined long-term investor willing to look
through the haze of uncertainty, there were indeed exciting opportunities.
Acting on this belief helped the Fund achieve its favorable performance results
during the period under review, as it had 15.5 percent of its net assets
targeted toward Japan at the end of September. This is slightly less than the 17
percent allocation toward Japan six months ago, but as that market has performed
so strongly, the Fund realized significant profits by reducing its exposure.
It is becoming increasingly clear that Japan is well on its way toward economic
improvement. The first two quarters of this fiscal year witnessed strong
positive GDP growth and Japanese industrial production growth saw its largest
monthly improvement in nearly 50 years. Reorganization of the country's banking
system is clearly positive and we anticipate a significant upswing in corporate
profits on better consumer demand and corporate restructuring efforts. Recent
strength in the Japanese yen reinforces the need for further corporate
restructuring.
Despite Japan's strong performance, the equity market remains 45 percent below
its all-time high recorded nearly ten years ago. As the Japanese economy
continues to improve, corporate profits recover and the pessimism subsides, we
expect the stocks of Japan's highest quality companies to be driven higher by
investors. The Fund is well positioned to benefit from such circumstances.
Overall, we remain optimistic about the long-term prospects for the Fund's
Japanese holdings.
2
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1999, CONTINUED
EUROPE
Once again, we believe Europe presents great opportunities for the disciplined
long-term investor. After a period of relatively weak economic growth, signs are
emerging that Europe's economy is poised for a takeoff. Anticipated strong
corporate profits growth and a continuing benign inflation outlook should help
drive many European stocks higher. Furthermore, merger activity in Europe is
very strong, particularly in many of the large companies in which the Fund is
invested, and increasingly involves cross-border partnerships. The arrival of
Europe's single currency, the euro, on January 1, 1999, has facilitated many of
these mergers. As Europe's economy gathers momentum relative to the United
States, we expect the euro to appreciate versus the U.S. dollar, also favorable
for U.S.-based investors in European equities. At period end the Fund had 25
percent of its net assets targeted toward the eleven countries that together
form the eurozone, a four percent increase from six months earlier.
Other continental European markets where the Fund maintains exposure include
Switzerland (6 percent) and Sweden (1.5 percent). The combination of low
interest rates, strong corporate profits growth and attractive valuations should
support Swiss equities in the near term. The Fund's Swedish exposure was
recently reduced due to strong performance and better relative opportunities
elsewhere.
The Fund had 14 percent of its net assets invested in the United Kingdom at the
end of September, a 3 percent increase over six months earlier. Despite the
recent hike in short-term interest rates by the Bank of England, inflation
appears subdued and further rate increases are unlikely in the near term. We
believe the long-term prospects for U.K. equities are quite favorable, supported
by compelling valuations in many sectors and an improving corporate profit
outlook. Recent additions to the Fund include Rolls Royce and Abbey National
Bank.
PACIFIC RIM
Because of the Fund's risk considerations, Hong Kong is the only Southeast Asian
market in which the Fund is currently invested. Most Asian stock markets have
rebounded strongly from their depressed levels of one year ago, and Hong Kong
stocks have not been an exception, advancing more than 15.6 percent over the
last six months and more than 60 percent in the last twelve months. GDP growth
in Hong Kong registered a 0.7 percent year-over-year gain in the second quarter
of 1999 after declining in five consecutive quarters. Real estate prices have
recovered, as has private consumption. The Fund had 1.7 percent of net assets in
Hong Kong as of September 30, down from
3
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS SEPTEMBER 30, 1999, CONTINUED
2.0 percent six months earlier. Much of Asia's recovery seems well discounted by
current equity prices, but we are convinced that further strength in Asian
economies and equity markets is forthcoming.
CANADA AND AUSTRALIA
Our continued exposure to the resource-oriented markets of Australia and Canada
offers the potential for risk reduction through diversification as well as
growth potential in economically stable countries. After a long period of
declining commodity prices, the resurgence in global economic activity has
driven prices of some commodities higher. If this increased global demand
persists, companies that manufacture and process commodities and natural
resources should benefit.
LOOKING AHEAD
We believe that as global economic growth accelerates and becomes more evenly
distributed, the outlook for stocks of well-established large-capitalization
international companies is favorable. We believe this is a very good time to
participate in the global equity markets and we will remain sensitive to any
developments that would necessitate a change to the Fund's country allocations
and portfolio holdings.
We appreciate your ongoing support of Morgan Stanley Dean Witter Global Dividend
Growth Securities and look forward to continuing to serve your investment needs.
Very truly yours,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>
4
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND
GROWTH SECURITIES
FUND PERFORMANCE SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
----------------------------------------------------------------------------------------------
CLASS A SHARES* CLASS B SHARES+
-------------------------------------------- ---------------------------------------------
PERIOD ENDED 9/30/99 PERIOD ENDED 9/30/99
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 26.39(1) 19.76(2) 1 Year 25.67(1) 20.67(2)
From Inception (7/28/97) 6.91(1) 4.29(2) 5 Years 12.83(1) 12.58(2)
From Inception (6/30/93) 12.89(1) 12.89(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES++ CLASS D SHARES#
--------------------------------------------- ---------------------------------------------
PERIOD ENDED 9/30/99 PERIOD ENDED 9/30/99
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 25.48(1) 24.48(2) 1 Year 26.78(1)
From Inception (7/28/97) 6.11(1) 6.11(2) From Inception (7/28/97) 7.17(1)
</TABLE>
- ------------------------
(1)Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2)Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
* The maximum front-end sales charge for Class A is 5.25%.
+ The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%. The
CDSC declines to 0% after six years.
++The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
# Class D shares have no sales charge.
5
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (98.2%)
AUSTRALIA (1.7%)
BUILDING MATERIALS
5,000,000 Pioneer International Ltd........................................................... $ 12,354,562
--------------
CONTAINERS/PACKAGING
1,868,000 Amcor Ltd........................................................................... 8,955,949
--------------
INTERNATIONAL BANKS
2,000,000 Australia & New Zealand Banking Group Ltd........................................... 13,372,150
--------------
OIL & GAS PRODUCTION
4,000,000 Santos Ltd.......................................................................... 11,185,640
--------------
PRECIOUS METALS
17,000,000 Normandy Mining Ltd................................................................. 15,081,176
--------------
TOTAL AUSTRALIA..................................................................... 60,949,477
--------------
BELGIUM (0.7%)
DIVERSIFIED FINANCIAL SERVICES
770,000 Fortis (B Shares)................................................................... 25,157,147
--------------
CANADA (2.1%)
ALUMINUM
425,000 Alcan Aluminium Ltd................................................................. 13,350,027
--------------
INTERNATIONAL BANKS
650,000 Toronto-Dominion Bank............................................................... 12,600,504
--------------
MULTI-SECTOR COMPANIES
1,000,000 EdperBrascan Corp. (Class A)........................................................ 14,172,799
--------------
OIL & GAS
800,000 Imperial Oil Ltd.................................................................... 16,762,061
--------------
OIL/GAS TRANSMISSION
720,000 Enbridge Inc........................................................................ 15,576,451
--------------
TOTAL CANADA........................................................................ 72,461,842
--------------
FRANCE (7.6%)
AUTO PARTS: O.E.M.
1,200 Valeo S.A........................................................................... 87,060
--------------
AUTOMOTIVE AFTERMARKET
525,000 Compagnie Generale des Etablissements Michelin (B Shares)........................... 24,843,244
--------------
BUILDING MATERIALS
243,216 Lafarge S.A......................................................................... 26,954,963
--------------
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONTAINERS/PACKAGING
475,000 Compagnie Generale d'Industrie et de Participations................................. $ 22,314,925
--------------
DIVERSIFIED MANUFACTURING
135,000 Compagnie de Saint-Gobain........................................................... 25,224,412
--------------
FARMING/SEEDS/MILLING
180,000 Eridania Beghin-Say S.A............................................................. 21,870,767
--------------
HOTELS/RESORTS
600 Accor S.A........................................................................... 140,232
--------------
INTEGRATED OIL COMPANIES
145,000 Elf Aquitaine S.A................................................................... 25,389,906
--------------
INTERNATIONAL BANKS
285,000 Banque Nationale de Paris........................................................... 22,806,873
--------------
MILITARY/GOV'T/TECHNICAL
3,000 Thomson CSF......................................................................... 102,179
--------------
MULTI-LINE INSURANCE
500,000 Assurances Generales de France...................................................... 27,439,890
1,400 AXA................................................................................. 177,580
--------------
27,617,470
--------------
MULTI-SECTOR COMPANIES
35,000 Societe Eurafrance S.A.............................................................. 21,674,310
840 Vivendi............................................................................. 59,148
--------------
21,733,458
--------------
OIL REFINING/MARKETING
180,000 Total S.A. (B Shares)............................................................... 22,677,948
--------------
TELECOMMUNICATIONS EQUIPMENT
175,000 Alcatel............................................................................. 24,178,066
--------------
TOTAL FRANCE........................................................................ 265,941,503
--------------
GERMANY (7.9%)
APPAREL
165,000 Hugo Boss AG (Pref.)................................................................ 20,629,566
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
325,000 Siemens AG (Registered Shares)...................................................... 26,910,044
--------------
DIVERSIFIED MANUFACTURING
730,000 MAN AG.............................................................................. 22,057,614
--------------
ENGINEERING & CONSTRUCTION
750,000 Bilfinger & Berger Bau AG........................................................... 17,136,585
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNATIONAL BANKS
400,000 Deutsche Bank Aktiengesellschaft.................................................... $ 26,841,978
--------------
MAJOR CHEMICALS
530,000 BASF AG............................................................................. 22,635,240
600,000 Bayer AG............................................................................ 23,991,219
--------------
46,626,459
--------------
MOTOR VEHICLES
17,108 Bayerische Motoren Werke (BMW) AG................................................... 484,055
350,000 DaimlerChrylser AG.................................................................. 24,178,066
--------------
24,662,121
--------------
MULTI-SECTOR COMPANIES
570,000 RWE AG.............................................................................. 23,704,542
1,100,000 Thyssen Krupp AG*................................................................... 22,138,760
425,000 VEBA AG............................................................................. 23,346,595
--------------
69,189,897
--------------
SHOE MANUFACTURING
273,800 Adidas-Salomon AG................................................................... 23,343,050
--------------
TOTAL GERMANY....................................................................... 277,397,314
--------------
HONG KONG (1.7%)
MULTI-SECTOR COMPANIES
11,000 Hutchison Whampoa, Ltd.............................................................. 101,950
--------------
REAL ESTATE
1,920,000 Cheung Kong (Holdings) Ltd.......................................................... 16,003,089
3,000,000 Henderson Land Development Co., Ltd................................................. 13,825,063
--------------
29,828,152
--------------
TELECOMMUNICATIONS
7,250,000 Cable & Wireless HKT Ltd............................................................ 15,818,691
--------------
UTILITIES
3,200,000 CLP Holdings Ltd.................................................................... 15,035,078
--------------
TOTAL HONG KONG..................................................................... 60,783,871
--------------
ITALY (2.8%)
INTEGRATED OIL COMPANIES
4,000,000 Ente Nazionale Idrocarburi SpA...................................................... 25,155,012
--------------
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNATIONAL BANKS
36,000 Banca Commerciale Italiana.......................................................... $ 249,073
1,800,000 Istituto Bancario San Paolo di Torino SpA*.......................................... 23,446,692
--------------
23,695,765
--------------
SPECIALTY FOODS/CANDY
13,500,000 Montedison SpA...................................................................... 26,521,668
--------------
TELECOMMUNICATIONS
4,526,000 Telecom Italia SpA.................................................................. 22,808,976
--------------
TOTAL ITALY......................................................................... 98,181,421
--------------
JAPAN (15.9%)
AIR FREIGHT/DELIVERY SERVICES
1,300,000 Yamato Transport Co., Ltd........................................................... 33,049,812
--------------
ALCOHOLIC BEVERAGES
2,750,000 Kirin Brewery Co., Ltd.............................................................. 32,953,477
--------------
AUTO PARTS: O.E.M.
4,000 Bridgestone Corp.................................................................... 112,030
--------------
CONSUMER ELECTRONICS/APPLIANCES
2,200,000 Sharp Corp.......................................................................... 35,274,436
220,000 Sony Corp........................................................................... 32,896,617
--------------
68,171,053
--------------
DIVERSIFIED COMMERCIAL SERVICES
2,000 Secom Co............................................................................ 178,571
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
455,000 Kyocera Corp........................................................................ 34,638,158
1,500,000 Matsushita Electric Industrial Co., Ltd............................................. 31,931,391
1,600,000 NEC Corp............................................................................ 32,255,639
--------------
98,825,188
--------------
ELECTRICAL PRODUCTS
3,250,000 Matsushita Electric Works, Ltd...................................................... 33,935,620
--------------
ELECTRONIC COMPONENTS
287,000 TDK Corp............................................................................ 33,258,553
--------------
FINANCE COMPANIES
250,000 Acom Co., Ltd....................................................................... 32,824,248
--------------
HOME BUILDING
2,935,000 Sekisui House Ltd................................................................... 33,156,673
--------------
MAJOR PHARMACEUTICALS
640,000 Takeda Chemical Industries.......................................................... 34,586,466
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MOTOR VEHICLES
750,000 Honda Motor Co...................................................................... $ 31,437,970
950,000 Toyota Motor Corp................................................................... 30,267,857
--------------
61,705,827
--------------
OTHER PHARMACEUTICALS
770,000 Taisho Pharmaceutical Co., Ltd...................................................... 32,421,053
--------------
RECREATIONAL PRODUCTS/TOYS
200,000 Nintendo Co., Ltd................................................................... 31,917,293
--------------
SEMICONDUCTORS
1,000 Rohm Co., Ltd....................................................................... 209,117
--------------
TOBACCO
2,525 Japan Tobacco, Inc.................................................................. 31,325,188
--------------
TOTAL JAPAN......................................................................... 558,630,169
--------------
NETHERLANDS (3.5%)
AIRLINES
915,000 KLM Royal Dutch Air Lines NV........................................................ 23,886,318
--------------
BOOKS/MAGAZINES
1,800 VNU NV.............................................................................. 62,653
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
253,000 Koninklijke (Royal) Philips Electronics NV.......................................... 25,527,105
--------------
DIVERSIFIED FINANCIAL SERVICES
2,328 ING Groep NV........................................................................ 126,766
--------------
FINANCIAL PUBLISHING/SERVICES
496 Wolters Kluwer NV................................................................... 17,053
--------------
FOOD CHAINS
3,437 Koninklijke Ahold NV................................................................ 113,393
--------------
INTERNATIONAL BANKS
1,060,000 ABN-AMRO Holding NV................................................................. 23,880,178
--------------
LIFE INSURANCE
334 Aegon NV............................................................................ 28,814
--------------
MAJOR CHEMICALS
3,000 Akzo Nobel NV....................................................................... 127,483
--------------
OILFIELD SERVICES/EQUIPMENT
148 Fugro NV............................................................................ 4,930
--------------
SPECIALTY CHEMICALS
600,000 DSM NV.............................................................................. 23,863,095
--------------
TELECOMMUNICATIONS
565,000 KPN NV.............................................................................. 24,823,758
--------------
TOTAL NETHERLANDS................................................................... 122,461,546
--------------
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL (0.7%)
TELECOMMUNICATIONS
600,000 Portugal Telecom S.A. (Registered Shares)........................................... $ 25,035,430
--------------
SPAIN (1.4%)
ELECTRIC UTILITIES
1,600,000 Iberdrola S.A....................................................................... 23,779,814
--------------
FOOD CHAINS
5,100 Centros Comerciales Pryca S.A....................................................... 95,837
--------------
INTERNATIONAL BANKS
350,000 Banco Popular Espanol S.A........................................................... 24,234,121
--------------
TELECOMMUNICATIONS
12,513 Telefonica S.A.*.................................................................... 200,803
--------------
TOTAL SPAIN......................................................................... 48,310,575
--------------
SWEDEN (1.5%)
CONSUMER ELECTRONICS/APPLIANCES
670,000 Electrolux AB (Series B)............................................................ 12,584,554
--------------
ENGINEERING & CONSTRUCTION
360,000 Skanska AB (B Shares)............................................................... 13,479,505
--------------
INDUSTRIAL MACHINERY/COMPONENTS
525,000 Sandvik AB (B Shares)............................................................... 14,437,065
--------------
INTERNATIONAL BANKS
2,000,000 Nordbanken Holding AB............................................................... 11,294,302
--------------
TELECOMMUNICATIONS EQUIPMENT
2,000 Ericsson (L.M.) Telephone Co. AB (Series 'B' Free).................................. 62,364
--------------
TOTAL SWEDEN........................................................................ 51,857,790
--------------
SWITZERLAND (5.9%)
INTERNATIONAL BANKS
130,000 UBS AG (Registered Shares).......................................................... 36,735,921
--------------
MAJOR PHARMACEUTICALS
23,000 Novartis AG (Registered Shares)..................................................... 34,202,686
10 Roche Holdings AG................................................................... 116,006
--------------
34,318,692
--------------
OTHER TELECOMMUNICATIONS
115,000 Swisscom AG (Registered Shares)*.................................................... 35,954,306
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PACKAGED FOODS
17,000 Nestle S.A. (Registered Shares)..................................................... $ 32,026,187
--------------
PROPERTY - CASUALTY INSURERS
17,000 Schweizerische Rueckversicherungs-Gesellschaft (Registered Shares).................. 34,013,628
--------------
TOBACCO
17,000 Compagnie Financiere Richemont AG (Series A)........................................ 34,501,971
--------------
TOTAL SWITZERLAND................................................................... 207,550,705
--------------
UNITED KINGDOM (14.1%)
AEROSPACE
15,984 British Aerospace PLC............................................................... 105,311
7,000,000 Rolls-Royce PLC..................................................................... 24,284,090
--------------
24,389,401
--------------
AIRLINES
4,500,000 British Airways PLC................................................................. 25,259,404
--------------
ALCOHOLIC BEVERAGES
1,925,000 Bass PLC............................................................................ 23,211,039
--------------
BUILDING MATERIALS
3,200,000 Hanson PLC.......................................................................... 24,651,994
--------------
CLOTHING/SHOE/ACCESSORY STORES
2,450,000 Next PLC............................................................................ 24,681,623
--------------
DIVERSIFIED FINANCIAL SERVICES
1,417,178 Abbey National PLC.................................................................. 25,147,764
1,350,000 HSBC Holdings PLC................................................................... 15,379,417
156,000 HSBC Holdings PLC (New)............................................................. 1,787,270
--------------
42,314,451
--------------
ENVIRONMENTAL SERVICES
7,300,000 Cookson Group PLC................................................................... 24,633,886
--------------
INTEGRATED OIL COMPANIES
17,300 Shell Transport & Trading Co. PLC................................................... 129,288
--------------
INTERNATIONAL BANKS
1,150,000 National Westminster Bank PLC....................................................... 26,805,092
1,250,000 Royal Bank of Scotland Group PLC.................................................... 26,810,854
--------------
53,615,946
--------------
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MAJOR PHARMACEUTICALS
8,286 Glaxo Wellcome PLC.................................................................. $ 216,051
--------------
MOVIES/ENTERTAINMENT
6,500,000 Rank Group PLC...................................................................... 22,924,000
--------------
MULTI-LINE INSURANCE
5,700 CGU PLC............................................................................. 87,963
9,756 Royal & Sun Alliance Insurance Group PLC............................................ 76,924
--------------
164,887
--------------
MULTI-SECTOR COMPANIES
6,000 General Electric Co. PLC............................................................ 57,581
9,302 Tomkins PLC......................................................................... 38,931
--------------
96,512
--------------
NON-U.S. UTILITIES
3,420,000 National Power PLC.................................................................. 26,656,450
2,800,000 PowerGen PLC........................................................................ 28,507,160
2,200,000 United Utilities PLC................................................................ 24,064,336
--------------
79,227,946
--------------
OTHER METALS/MINERALS
1,375,000 Rio Tinto PLC....................................................................... 23,833,470
--------------
PACKAGE GOODS/COSMETICS
7,000 Reckitt & Colman PLC................................................................ 86,881
--------------
PAPER
6,890,000 Arjo Wiggins Appleton PLC........................................................... 22,428,071
--------------
STEEL/IRON ORE
9,500,000 British Steel PLC*.................................................................. 24,121,538
--------------
TELECOMMUNICATIONS
10,000 British Telecommunications PLC...................................................... 151,359
--------------
TOBACCO
3,000,000 British American Tobacco PLC........................................................ 25,728,543
--------------
WATER SUPPLY
2,750,000 Hyder PLC........................................................................... 24,489,853
1,350,000 Hyder PLC (Pref.)*.................................................................. 2,200,013
1,800,000 Severn Trent PLC.................................................................... 26,933,488
--------------
53,623,354
--------------
TOTAL UNITED KINGDOM................................................................ 495,489,644
--------------
UNITED STATES (30.7%)
AEROSPACE
590,000 Northrop Grumman Corp............................................................... 37,501,875
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ALUMINUM
590,000 Alcoa, Inc.......................................................................... $ 36,616,875
--------------
AUTOMOTIVE AFTERMARKET
800,000 Goodyear Tire & Rubber Co........................................................... 38,500,000
--------------
BEVERAGES - NON-ALCOHOLIC
3,700 PepsiCo, Inc........................................................................ 111,925
--------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
975,000 Deere & Co.......................................................................... 37,720,312
--------------
CONTAINERS/PACKAGING
1,550,000 Crown Cork & Seal Co., Inc.......................................................... 37,587,500
--------------
DEPARTMENT STORES
1,250,000 Sears, Roebuck & Co................................................................. 39,218,750
--------------
DISCOUNT CHAINS
690,000 Dayton Hudson Corp.................................................................. 41,443,125
--------------
DIVERSIFIED MANUFACTURING
415,000 Minnesota Mining & Manufacturing Co................................................. 39,865,937
--------------
ELECTRIC UTILITIES
750,000 FPL Group, Inc...................................................................... 37,781,250
1,150,000 GPU, Inc............................................................................ 37,518,750
--------------
75,300,000
--------------
ELECTRONIC DATA PROCESSING
2,300 Hewlett-Packard Co.................................................................. 211,600
310,000 International Business Machines Corp................................................ 37,626,250
--------------
37,837,850
--------------
ENGINEERING & CONSTRUCTION
1,000,000 Fluor Corp.......................................................................... 40,250,000
--------------
FINANCE COMPANIES
1,100,000 Associates First Capital Corp. (Class A)............................................ 39,600,000
2,500 Fannie Mae.......................................................................... 156,719
--------------
39,756,719
--------------
FOOD CHAINS
910,000 Albertson's, Inc.................................................................... 36,001,875
--------------
INTEGRATED OIL COMPANIES
420,000 Chevron Corp........................................................................ 37,275,000
--------------
LIFE INSURANCE
1,850,000 Conseco, Inc........................................................................ 35,728,125
--------------
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MAJOR BANKS
650,000 Bank of America Corp................................................................ $ 36,196,875
1,450,000 KeyCorp............................................................................. 37,428,125
--------------
73,625,000
--------------
MAJOR CHEMICALS
330,000 Dow Chemical Co..................................................................... 37,496,250
--------------
MAJOR PHARMACEUTICALS
585,000 Bristol-Myers Squibb Co............................................................. 39,487,500
--------------
MID-SIZED BANKS
4,600 First Tennessee National Corp....................................................... 129,375
--------------
MOTOR VEHICLES
800,000 Ford Motor Co....................................................................... 40,150,000
--------------
MULTI-SECTOR COMPANIES
2,250,000 Tenneco, Inc........................................................................ 38,250,000
--------------
NATURAL GAS
650,000 Consolidated Natural Gas Co......................................................... 40,543,750
--------------
OIL REFINING/MARKETING
1,050,000 Ashland, Inc........................................................................ 35,306,250
--------------
OTHER METALS/MINERALS
700,000 Phelps Dodge Corp................................................................... 38,543,750
--------------
OTHER SPECIALTY STORES
5,700 Pep Boys-Manny, Moe & Jack.......................................................... 84,788
--------------
PAPER
800,000 International Paper Co.............................................................. 38,450,000
--------------
PHOTOGRAPHIC PRODUCTS
550,000 Eastman Kodak Co.................................................................... 41,490,625
--------------
SAVINGS & LOAN ASSOCIATIONS
59,364 Washington Mutual, Inc.............................................................. 1,736,397
--------------
SEMICONDUCTORS
3,600 Intel Corp.......................................................................... 267,525
--------------
SPECIALTY STEELS
2,800 Nucor Corp.......................................................................... 133,350
--------------
TOBACCO
1,060,000 Philip Morris Companies, Inc........................................................ 36,238,750
--------------
TOTAL UNITED STATES................................................................. 1,072,649,178
--------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $3,061,082,136).................................................... 3,442,857,612
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
<TABLE>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENT (a) (2.6%)
U.S. GOVERNMENT AGENCY
$ 92,500 Federal Home Loan Mortgage Corp. 5.20% due 10/01/99 (AMORTIZED COST
$92,500,000)............................................................... $ 92,500,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $3,153,582,136) (B).................................................... 100.8% 3,535,357,612
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.......................................... (0.8) (28,800,361)
----- ---------------
NET ASSETS.............................................................................. 100.0% $ 3,506,557,251
----- ---------------
----- ---------------
</TABLE>
- ---------------------
* Non-income producing security.
(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 is $589,314,083 and the
aggregate gross unrealized depreciation is $207,538,607, resulting in net
unrealized appreciation of $381,775,476.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT SEPTEMBER 30, 1999:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,083,325 AUD 4,715,286 10/01/99 $(7,544 )
$ 13,642,451 GBP 8,284,671 10/01/99 (5,054 )
$ 3,138,070 JPY 334,361,399 10/01/99 4,424
$ 2,974,261 GBP 1,801,709 10/04/99 (8,468 )
$ 2,297,274 GBP 1,395,671 10/04/99 140
EUR 2,717,850 $ 2,881,818 10/05/99 (20,031 )
$ 2,618,906 GBP 1,591,073 10/05/99 159
$ 292,918 JPY 31,120,750 10/05/99 (429 )
$ 4,183,948 GBP 2,539,882 10/06/99 (3,048 )
EUR 2,295,746 $ 2,419,602 10/29/99 (31,567 )
--------
Net unrealized depreciation................. $(71,418)
========
</TABLE>
CURRENCY ABBREVIATIONS:
<TABLE>
<S> <C>
AUD Australian Dollar.
GBP British Pound.
EUR Euro.
JPY Japanese Yen.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Aerospace....................................................................... $ 61,891,276 1.8%
Air Freight/Delivery Services................................................... 33,049,812 1.0
Airlines........................................................................ 49,145,722 1.4
Alcoholic Beverages............................................................. 56,164,516 1.6
Aluminum........................................................................ 49,966,902 1.4
Apparel......................................................................... 20,629,566 0.6
Auto Parts: O.E.M............................................................... 199,090 0.0
Automotive Aftermarket.......................................................... 63,343,244 1.8
Beverages - Non-Alcoholic....................................................... 111,925 0.0
Books/Magazines................................................................. 62,653 0.0
Building Materials.............................................................. 63,961,518 1.8
Clothing/Shoe/Accessory Stores.................................................. 24,681,623 0.7
Construction/Agricultural Equipment/Trucks...................................... 37,720,313 1.1
Consumer Electronics/Appliances................................................. 80,755,606 2.3
Containers/Packaging............................................................ 68,858,373 2.0
Department Stores............................................................... 39,218,750 1.1
Discount Chains................................................................. 41,443,125 1.2
Diversified Commercial Services................................................. 178,571 0.0
Diversified Electronic Products................................................. 151,262,337 4.3
Diversified Financial Services.................................................. 67,598,364 1.9
Diversified Manufacturing....................................................... 87,147,964 2.5
Electric Utilities.............................................................. 99,079,814 2.8
Electrical Products............................................................. 33,935,620 1.0
Electronic Components........................................................... 33,258,553 1.0
Electronic Data Processing...................................................... 37,837,850 1.1
Engineering & Construction...................................................... 70,866,090 2.0
Environmental Services.......................................................... 24,633,887 0.7
Farming/Seeds/Milling........................................................... 21,870,767 0.6
Finance Companies............................................................... 72,580,967 2.1
Financial Publishing/Services................................................... 17,052 0.0
Food Chains..................................................................... 36,211,105 1.0
Home Building................................................................... 33,156,673 0.9
Hotels/Resorts.................................................................. 140,232 0.0
Industrial Machinery/Components................................................. 14,437,065 0.4
Integrated Oil Companies........................................................ 87,949,206 2.5
International Banks............................................................. 249,077,739 7.1
Life Insurance.................................................................. 35,756,939 1.0
Major Banks..................................................................... 73,625,000 2.1
Major Chemicals................................................................. 84,250,192 2.4
Major Pharmaceuticals........................................................... 108,608,709 3.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Mid-Sized Banks................................................................. $ 129,375 0.0%
Military/Gov't/Technical........................................................ 102,179 0.0
Motor Vehicles.................................................................. 126,517,948 3.6
Movies/Entertainment............................................................ 22,924,000 0.7
Multi-Line Insurance............................................................ 27,782,358 0.8
Multi-Sector Companies.......................................................... 143,544,616 4.1
Natural Gas..................................................................... 40,543,750 1.2
Non-U.S. Utilities.............................................................. 79,227,945 2.3
Oil & Gas....................................................................... 16,762,061 0.5
Oil & Gas Production............................................................ 11,185,640 0.3
Oil Refining/Marketing.......................................................... 57,984,198 1.7
Oil/Gas Transmission............................................................ 15,576,451 0.4
Oilfield Services/Equipment 4,930 0.0
Other Metals/Minerals........................................................... 62,377,220 1.8
Other Pharmaceuticals........................................................... 32,421,053 0.9
Other Specialty Stores.......................................................... 84,788 0.0
Other Telecommunications........................................................ 35,954,306 1.0
Package Goods/Cosmetics......................................................... 86,881 0.0
Packaged Foods.................................................................. 32,026,187 0.9
Paper........................................................................... 60,878,071 1.7
Photographic Products........................................................... 41,490,625 1.2
Precious Metals................................................................. 15,081,176 0.4
Property-Casualty Insurers...................................................... 34,013,628 1.0
Real Estate..................................................................... 29,828,152 0.9
Recreational Products/Toys 31,917,293 0.9
Savings & Loan Associations..................................................... 1,736,397 0.0
Semiconductors.................................................................. 476,642 0.0
Shoe Manufacturing.............................................................. 23,343,050 0.7
Specialty Chemicals............................................................. 23,863,095 0.7
Specialty Foods/Candy........................................................... 26,521,668 0.8
Specialty Steels................................................................ 133,350 0.0
Steel/Iron Ore.................................................................. 24,121,538 0.7
Telecommunications.............................................................. 88,839,016 2.5
Telecommunications Equipment.................................................... 24,240,431 0.7
Tobacco......................................................................... 127,794,452 3.6
U.S. Government Agency.......................................................... 92,500,000 2.6
Utilities....................................................................... 15,035,078 0.4
Water Supply.................................................................... 53,623,354 1.5
-------------- -----
$3,535,357,612 100.8%
-------------- -----
-------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Common Stocks................................................................... $3,420,028,033 97.5%
Preferred Stocks................................................................ 22,829,579 0.7
Short-Term Investment........................................................... 92,500,000 2.6
-------------- -----
$3,535,357,612 100.8%
-------------- -----
-------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $3,153,582,136).......................................................... $3,535,357,612
Cash........................................................................................ 719,919
Receivable for:
Investments sold........................................................................ 9,834,596
Dividends............................................................................... 7,333,639
Foreign withholding taxes reclaimed..................................................... 3,519,417
Shares of beneficial interest sold...................................................... 3,008,324
Prepaid expenses and other assets........................................................... 281,048
--------------
TOTAL ASSETS........................................................................... 3,560,054,555
--------------
LIABILITIES:
Payable for:
Investments purchased................................................................... 43,393,424
Shares of beneficial interest repurchased............................................... 4,967,888
Plan of distribution fee................................................................ 2,473,125
Investment management fee............................................................... 2,078,703
Accrued expenses and other payables......................................................... 584,164
--------------
TOTAL LIABILITIES...................................................................... 53,497,304
--------------
NET ASSETS............................................................................. $3,506,557,251
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................. $2,927,029,759
Net unrealized appreciation................................................................. 382,026,853
Accumulated undistributed net investment income............................................. 13,897,375
Accumulated undistributed net realized gains................................................ 183,603,264
--------------
NET ASSETS............................................................................. $3,506,557,251
==============
CLASS A SHARES:
Net Assets.................................................................................. $ 44,333,499
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 3,235,555
NET ASSET VALUE PER SHARE.............................................................. $13.70
==============
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)...................................... $14.46
==============
CLASS B SHARES:
Net Assets.................................................................................. $3,375,452,946
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 246,789,691
NET ASSET VALUE PER SHARE.............................................................. $13.68
==============
CLASS C SHARES:
Net Assets.................................................................................. $ 17,406,432
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 1,276,689
NET ASSET VALUE PER SHARE.............................................................. $13.63
==============
CLASS D SHARES:
Net Assets.................................................................................. $ 69,364,374
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 5,052,724
NET ASSET VALUE PER SHARE.............................................................. $13.73
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $4,676,516 foreign withholding tax)......................................... $ 50,949,169
Interest...................................................................................... 1,682,260
------------
TOTAL INCOME............................................................................. 52,631,429
------------
EXPENSES
Plan of distribution fee (Class A shares)..................................................... 49,825
Plan of distribution fee (Class B shares)..................................................... 14,950,068
Plan of distribution fee (Class C shares)..................................................... 80,073
Investment management fee..................................................................... 12,849,296
Transfer agent fees and expenses.............................................................. 2,269,291
Custodian fees................................................................................ 891,828
Shareholder reports and notices............................................................... 175,169
Registration fees............................................................................. 72,393
Professional fees............................................................................. 45,961
Trustees' fees and expenses................................................................... 17,483
Other......................................................................................... 37,314
------------
TOTAL EXPENSES........................................................................... 31,438,701
------------
NET INVESTMENT INCOME.................................................................... 21,192,728
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................................................... 237,679,302
Foreign exchange transactions............................................................. (268,872)
------------
NET GAIN................................................................................. 237,410,430
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... 12,375,670
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies....................................................... 393,547
------------
NET APPRECIATION......................................................................... 12,769,217
------------
NET GAIN................................................................................. 250,179,647
------------
NET INCREASE.................................................................................. $271,372,375
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999
- ------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................................. $ 21,192,728 $ 27,365,164
Net realized gain................................................. 237,410,430 245,536,463
Net change in unrealized appreciation............................. 12,769,217 (291,737,731)
-------------- --------------
NET INCREASE................................................. 271,372,375 (18,836,104)
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares................................................ (287,096) (261,174)
Class B shares................................................ (17,429,259) (18,635,895)
Class C shares................................................ (85,811) (56,045)
Class D shares................................................ (495,600) (571,271)
Net realized gain
Class A shares............................................... (1,430,531) (1,843,310)
Class B shares............................................... (118,572,159) (316,814,401)
Class C shares............................................... (537,370) (1,049,978)
Class D shares............................................... (2,353,453) (3,084,811)
-------------- --------------
TOTAL DIVIDENDS AND DISTRIBUTIONS............................ (141,191,279) (342,316,885)
-------------- --------------
Net decrease from transactions in shares of beneficial interest... (78,562,335) (38,312,266)
-------------- --------------
NET INCREASE (DECREASE)...................................... 51,618,761 (399,465,255)
NET ASSETS:
Beginning of period............................................... 3,454,938,490 3,854,403,745
-------------- --------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $13,897,375
AND $11,002,413, RESPECTIVELY)................................ $3,506,557,251 $3,454,938,490
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley 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. On
July 28, 1997, the Fund converted to a multiple class share structure.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, 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 Morgan Stanley Dean Witter Advisors 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
16
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
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-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. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
D. 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.
E. 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
17
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
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.
F. 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.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
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; 0.70% to the portion of daily net assets exceeding $1.5
billion but not exceeding $2.5 billion; 0.675% to the portion of daily net
assets exceeding $2.5 billion but not exceeding $3.5 billion; 0.65% to the
portion of daily net assets exceeding $3.5 billion but not exceeding
$4.5 billion; and 0.625% to the portion of daily net assets in excess of $4.5
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
18
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
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 Morgan Stanley 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. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) the average daily net
assets of Class B; and (iii) Class C -- up to 1.0% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for (1)
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of, the Morgan Stanley
Dean Witter Financial Advisors and others who engage in or support distribution
of the shares or who service shareholder accounts, including overhead and
telephone expenses; (2) printing and distribution of prospectuses and reports
used in connection with the offering of these shares to other than current
shareholders; and (3) preparation, printing and distribution of sales literature
and advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and Distributor,
and other selected broker-dealers for their opportunity costs in advancing such
amounts, which compensation would be in the form of a carrying charge on any
unreimbursed expenses.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the
19
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
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
$64,953,906 at September 30, 1999.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the six months ended September 30, 1999, the distribution fee
was accrued for Class A shares and Class C shares at the annual rate of 0.24%
and 1.00%, respectively.
The Distributor has informed the Fund that for the six months ended
September 30, 1999, it received contingent deferred sales charges from certain
redemptions of the Fund's Class A, Class B and Class C shares of $64, $1,813,110
and $2,807, respectively and received $38,257 in front-end sales charges from
sales of the Fund's Class A shares. The respective shareholders pay such charges
which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended September 30, 1999 aggregated
$806,369,334 and $1,018,272,434, respectively.
For the six months ended September 30, 1999, the Fund incurred $28,347 in
brokerage commissions with DWR for portfolio transactions executed on behalf of
the Fund.
For the six months ended September 30, 1999, the Fund incurred brokerage
commissions of $555,445 with Morgan Stanley & Co., Inc., an affiliate of the
Investment Manager and Distributor, for portfolio transactions executed on
behalf of the Fund. At September 30, 1999, included in the Fund's receivable for
investments sold were unsettled trades with Morgan Stanley & Co., Inc. for
$2,419,602.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent.
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
20
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
the last five years of service. Aggregate pension costs for the six months ended
September 30, 1999 included in Trustees' fees and expenses in the Statement of
Operations amounted to $11,483. At September 30, 1999, the Fund had an accrued
pension liability of $65,635 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, 1999 MARCH 31, 1999
--------------------------- -----------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold.............................................. 1,648,341 $ 23,441,081 2,445,885 $ 31,514,500
Reinvestment of dividends and distributions....... 115,628 1,609,547 151,674 1,988,984
Shares issued in connection with the acquisition
of Dean Witter World Wide Investment Trust....... -- -- 60,400 813,198
Redeemed.......................................... (1,230,885) (17,577,002) (858,155) (11,314,041)
----------- ------------- ----------- ---------------
Net increase - Class A............................ 533,084 7,473,626 1,799,804 23,002,641
----------- ------------- ----------- ---------------
CLASS B SHARES
Sold.............................................. 9,676,385 136,286,774 21,502,359 286,062,777
Reinvestment of dividends and distributions....... 9,056,592 126,067,754 23,576,064 312,457,447
Shares issued in connection with the acquisition
of Dean Witter World Wide Investment Trust....... -- -- 21,617,480 291,123,803
Redeemed.......................................... (25,322,110) (355,782,364) (77,262,606) (1,000,267,017)
----------- ------------- ----------- ---------------
Net decrease - Class B............................ (6,589,133) (93,427,836) (10,566,703) (110,622,991)
----------- ------------- ----------- ---------------
CLASS C SHARES
Sold.............................................. 326,389 4,588,247 580,330 7,763,468
Reinvestment of dividends and distributions....... 42,758 593,483 78,973 1,043,840
Shares issued in connection with the acquisition
of Dean Witter World Wide Investment Trust....... -- -- 5,717 76,885
Redeemed.......................................... (130,202) (1,816,605) (300,803) (3,913,266)
----------- ------------- ----------- ---------------
Net increase - Class C............................ 238,945 3,365,125 364,217 4,970,927
----------- ------------- ----------- ---------------
CLASS D SHARES
Sold.............................................. 1,185,999 16,800,350 1,733,498 22,835,792
Reinvestment of dividends and distributions....... 201,921 2,814,782 275,791 3,602,567
Shares issued in connection with the acquisition
of Dean Witter World Wide Investment Trust....... -- -- 2,083,617 28,062,611
Shares issued in connection with the acquisition
of Dean Witter Retirement Series - Global Equity
Series........................................... -- -- 1,324,733 15,658,117
Redeemed.......................................... (1,104,288) (15,588,382) (2,035,926) (25,821,930)
----------- ------------- ----------- ---------------
Net increase - Class D............................ 283,632 4,026,750 3,381,713 44,337,157
----------- ------------- ----------- ---------------
Net decrease in Fund.............................. (5,533,472) $ (78,562,335) (5,020,969) $ (38,312,266)
=========== ============= =========== ===============
</TABLE>
21
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
6. FEDERAL INCOME TAX STATUS
As of March 31, 1999, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and income from the
mark-to-market of passive foreign investment companies.
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.
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 September 30, 1999, there were outstanding forward contracts used to
facilitate settlement of foreign currency denominated portfolio transactions.
8. ACQUISITION OF DEAN WITTER WORLD WIDE INVESTMENT TRUST AND DEAN WITTER
RETIREMENT SERIES -- GLOBAL EQUITY SERIES
As of the close of business on June 5, 1998, the Fund acquired all the net
assets of Dean Witter World Wide Investment Trust ("World Wide") pursuant to a
plan of reorganization approved by the shareholders of World Wide on May 21,
1998. The acquisition was accomplished by a tax-free exchange of 60,400 Class A
shares of the Fund at a net asset value of $13.46 per share for 45,643 Class A
shares of World Wide; 21,617,480 Class B shares of the Fund at a net asset value
of $13.47 per share for 16,154,443 Class B shares of World Wide; 5,717 Class C
shares of the Fund at a net asset value $13.45 per share for 4,847 Class C
shares of World Wide; and 2,083,617 Class D shares of the Fund at a net asset
value of $13.47 per share for 1,553,200 Class D shares of World Wide. The net
assets of the Fund and World Wide immediately before the acquisition were
$3,752,602,041 and $320,076,496, respectively, including unrealized appreciation
of $62,462,147 for World Wide. Immediately after the acquisition, the combined
net assets of the Fund amounted to $4,072,678,537.
As of the close of business on September 11, 1998, the Fund acquired all the net
assets of Dean Witter Retirement Series -- Global Equity Series ("Retirement
Global Equity") pursuant to a plan of reorganization approved by shareholders of
Retirement Global Equity on August 19, 1998. The
22
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999 (UNAUDITED) CONTINUED
acquisition was accomplished by a tax-free exchange of 1,324,733 Class D shares
of the Fund at a net asset value of $11.82 per share for 1,295,148 shares of
Retirement Global Equity. The net assets of the Fund and Retirement Global
Equity immediately before the acquisition were $3,344,782,577 and $15,658,117,
respectively, including unrealized appreciation of $1,416,232 for Retirement
Global Equity. Immediately after the acquisition, the combined net assets of the
Fund amounted to $3,360,440,694.
23
<PAGE>
MORGAN STANLEY 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
FOR THE SIX FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED THROUGH
SEPTEMBER 30, 1999 MARCH 31, 1999 MARCH 31, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES ++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 13.20 $ 14.43 $ 14.91
-------- -------- --------
Income (loss) from investment operations:
Net investment income.................................... 0.12 0.17 0.09
Net realized and unrealized gain (loss).................. 0.97 (0.04) 0.62
-------- -------- --------
Total income from investment operations..................... 1.09 0.13 0.71
-------- -------- --------
Less dividends and distributions from:
Net investment income.................................... (0.10) (0.14) (0.16)
Net realized gain........................................ (0.49) (1.22) (1.03)
-------- -------- --------
Total dividends and distributions........................... (0.59) (1.36) (1.19)
-------- -------- --------
Net asset value, end of period.............................. $ 13.70 $ 13.20 $ 14.43
======== ======== ========
TOTAL RETURN+............................................... 8.13%(1) 1.10% 5.77%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.14%(2)(3) 1.12%(3) 1.17%(2)
Net investment income....................................... 1.75%(2)(3) 1.39%(3) 1.02%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $44,333 $35,673 $13,027
Portfolio turnover rate..................................... 23% 47% 51%(1)
</TABLE>
- ---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED MARCH 31
MONTHS ENDED ----------------------------------------------------
SEPTEMBER 30, 1999++ 1999++ 1998*++ 1997 1996 1995
(UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period............... $ 13.19 $ 14.44 $ 13.30 $ 12.86 $ 11.41 $ 10.81
------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income........................... 0.08 0.10 0.11 0.12 0.13 0.14
Net realized and unrealized gain (loss)......... 0.97 (0.06) 2.79 1.44 1.96 0.88
------- ------- ------- ------- ------- -------
Total income from investment operations............ 1.05 0.04 2.90 1.56 2.09 1.02
------- ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income........................... (0.07) (0.07) (0.12) (0.13) (0.15) (0.14)
Net realized gain............................... (0.49) (1.22) (1.64) (0.99) (0.49) (0.28)
------- ------- ------- ------- ------- -------
Total dividends and distributions.................. (0.56) (1.29) (1.76) (1.12) (0.64) (0.42)
------- ------- ------- ------- ------- -------
Net asset value, end of period..................... $ 13.68 $ 13.19 $ 14.44 $ 13.30 $ 12.86 $ 11.41
======= ======= ======= ======= ======= =======
TOTAL RETURN+...................................... 7.86%(1) 0.42% 23.41% 12.58% 18.77% 9.60%
RATIOS TO AVERAGE NET ASSETS:
Expenses........................................... 1.75%(2)(3) 1.78%(3) 1.71% 1.75% 1.85% 1.97%
Net investment income.............................. 1.14%(2)(3) 0.74%(3) 0.80% 0.93% 1.05% 1.22%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions............. $ 3,375 $ 3,343 $ 3,812 $ 3,038 $ 2,434 $ 1,854
Portfolio turnover rate............................ 23% 47% 51% 40% 40% 32%
</TABLE>
- ---------------------
* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED THROUGH
SEPTEMBER 30, 1999 MARCH 31, 1999 MARCH 31, 1998
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 13.17 $ 14.42 $ 14.91
-------- -------- --------
Income (loss) from investment operations:
Net investment income.............................................. 0.07 0.08 0.02
Net realized and unrealized gain (loss)............................ 0.96 (0.05) 0.62
-------- -------- --------
Total income from investment operations............................... 1.03 0.03 0.64
-------- -------- --------
Less dividends and distributions from:
Net investment income.............................................. (0.08) (0.06) (0.10)
Net realized gain.................................................. (0.49) (1.22) (1.03)
-------- -------- --------
Total dividends and distributions..................................... (0.57) (1.28) (1.13)
-------- -------- --------
Net asset value, end of period........................................ $ 13.63 $ 13.17 $ 14.42
======== ======== ========
TOTAL RETURN+......................................................... 7.69%(1) 0.37% 5.26%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.90%(2)(3) 1.85%(3) 1.92%(2)
Net investment income................................................. 0.99%(2)(3) 0.66%(3) 0.24%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $17,406 $13,664 $ 9,711
Portfolio turnover rate............................................... 23% 47% 51%(1)
</TABLE>
- ---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED THROUGH
SEPTEMBER 30, 1999 MARCH 31, 1999 MARCH 31, 1998
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 13.21 $ 14.44 $ 14.91
-------- -------- --------
Income (loss) from investments operations:
Net investment income.............................................. 0.14 0.20 0.11
Net realized and unrealized gain (loss)............................ 0.97 (0.05) 0.62
-------- -------- --------
Total income from investment operations............................... 1.11 0.15 0.73
-------- -------- --------
Less dividends and distributions from:
Net investment income.............................................. (0.10) (0.16) (0.17)
Net realized gain.................................................. (0.49) (1.22) (1.03)
-------- -------- --------
Total dividends and distributions..................................... (0.59) (1.38) (1.20)
-------- -------- --------
Net asset value, end of period........................................ $ 13.73 $ 13.21 $ 14.44
======== ======== ========
TOTAL RETURN+......................................................... 8.32%(1) 1.27% 5.97%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.90%(2)(3) 0.90%(3) 0.92%(2)
Net investment income................................................. 1.99%(2)(3) 1.61%(3) 1.21%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $69,364 $63,013 $20,032
Portfolio turnover rate............................................... 23% 47% 51%(1)
</TABLE>
- ---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
Paul D. Vance
Vice President
Matthew T. Haynes
Assistant Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records
of the Fund without examination by the independent accountants and
accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus. Read the
prospectus carefully before investing.
MORGAN STANLEY
DEAN WITTER
GLOBAL DIVIDEND
GROWTH SECURITIES
[PHOTO]
SEMIANNUAL REPORT
SEPTEMBER 30, 1999
