<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND TWO WORLD TRADE CENTER,
GROWTH SECURITIES NEW YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS MARCH 31, 1999
DEAR SHAREHOLDER:
The twelve-month period ended March 31, 1999 was the most challenging year for
Morgan Stanley Dean Witter Global Dividend Growth Securities since its inception
in 1993. The Fund owns common stocks of large and well-established high-quality
companies in the world's most developed countries. As a result of the Fund's
conservative and extremely value-oriented strategy, the portfolio has been
heavily weighted toward markets in which common stocks are trading at
inexpensive valuations in the opinion of the Fund's managers.
Due to the favorable economic fundamentals enjoyed by the United States during
the last twelve months, many large-capitalization common stocks in the United
States reached valuations that the Fund's management deemed too high. This
conclusion led the Fund to underweight the United States relative to countries
in the Morgan Stanley Capital International (MSCI) World Index. However, the
performance of the U.S. equity market, as measured by the S&P 500 Composite
Stock Price Index (S&P 500), once again dominated most other developed world
markets, with a total return of 18.47 percent. The Fund's managers remain
optimistic about the favorable long-term prospects for the high-quality
companies, both within and outside of the U.S., in which the Fund invests.
PERFORMANCE REVIEW
For the twelve-month period ended March 31, 1999, the Fund's Class B shares
produced a total return of 0.42 percent, compared to returns of 13.05 percent
and 3.68 percent for the MSCI World Index and the Lipper Global Funds Index,
respectively. During the same period, the Fund's Class A, C and D shares posted
total returns of 1.10 percent, 0.37 percent and 1.27 percent, respectively. The
performance of the Fund's four share classes varies because each class has
different expenses. The accompanying chart illustrates the growth of a $10,000
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1999, CONTINUED
investment in the Fund from its inception through the fiscal year ended March
31, 1999, versus similar investments in the MSCI World Index and the Lipper
Global Funds Index.
Because the Fund's investment process emphasizes value stocks, its
underperformance relative to its benchmark indexes during the period can be
attributed partly to the significant difference between the performance of value
stocks and growth stocks. Near the end of the fiscal year, one well-respected
Wall Street strategist observed that S&P 500 value stocks were underperforming
S&P 500 growth stocks by the widest margin in 25 years. This trend was not
unique to the United States, however, as the same disparity in the performance
of growth and value stocks has prevailed in other markets worldwide.
THE UNITED STATES
As mentioned, the U.S. equity market's performance led the universe of developed
markets the Fund invests in. The U.S. market has continued to drive ahead
despite shock waves emanating from currency crises in South America and Asia.
The current economic expansion, the longest in postwar history, appears to be
remaining intact, and we believe that the Fund is in a strong position to
capture the benefits of these favorable market conditions. Since June 1998, we
have been targeting 34 percent of the Fund's assets toward U.S. equity
investments, a 4 percent increase compared with the last fiscal year-end. Recent
stocks added to the portfolio include Eastman Kodak, Sears, Roebuck & Co., FPL
Group and Conseco.
JAPAN
The economic picture of the world's second-largest economy remains mixed. One
year ago, we described the state of extreme pessimism among both Japanese
consumers and business leaders alike. These overly pessimistic fears resulted in
what we felt were fantastic opportunities to own some of the world's greatest
companies at significant discounts to their non-Japanese competitors. As we
suspected, those fears now appear to have been overstated. Japanese stocks, as
measured by the MSCI Japan Index, returned 15.71 percent for the twelve months
ended March 31, 1999, the second-best-performing market of all the developed
markets in which the Fund invests.
We still believe that exciting investment opportunities exist for the
disciplined long-term investor who is willing to peer through the current haze
of uncertainty. Although unfavorable economic conditions still prevail, there
are also many significant signs of change that we anticipate will have a
positive impact on Japanese equity prices. Most recently, Japan's parliament
approved a massive tax cut package to take effect April 1, 1999, slashing
personal income tax rates by 20 percent and bringing corporate tax rates more in
line with those of other countries. In part it has been Japan's above-average
personal and corporate tax rates that have impeded that country's emergence from
its worst recession since World War II. The recently approved budget that raises
government spending by 5.4 percent and allows for 10 trillion yen ($80 billion)
in new public works programs should help
2
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1999, CONTINUED
facilitate Japan's long-awaited economic recovery. There is a perception now of
much greater stability in Japan's financial system, as the result of nearly 7.5
trillion yen (more than $60 billion) of public funds being injected recently
into the Japanese banking system, which served as the first step toward
recapitalizing Japan's banks, a prerequisite for a sustained economic recovery.
Japanese corporations are also taking significant steps toward improvement by
adopting aggressive restructuring plans. The Fund, with 17 percent of its assets
invested in Japan, is well positioned to participate in Japan's economic
recovery.
EUROPE
This has been an exciting year to be invested in European equity markets. On
January 1, 1999, the European Union's new single currency, the euro, replaced 11
national currencies for all non-cash transactions. Eleven countries -- Germany,
France, Italy, the Netherlands, Luxembourg, Austria, Belgium, Finland, Ireland,
Portugal and Spain -- were linked by the euro, creating a combined economy on a
par with those of the United States and Japan. Last year many of these European
markets sustained dramatic rallies in anticipation of this event. Prior to the
interim peaks in these markets last July, we took significant profits across all
Fund holdings in Europe and pared back our overweight stance there, on the
belief that equity valuations seemed to discount much of the anticipated benefit
of currency and interest-rate policy convergence. As the European markets
corrected in August and September, some by more than 20 percent, attractive
valuations once again re-emerged, whereupon we took the opportunity to buy into
the weakness. This move proved fortuitous now that European markets are again
approaching their historic highs.
Individual market target weightings for the European portion of the Fund are as
follows: Euro zone markets, 21 percent; United Kingdom, 11 percent; Switzerland,
5 percent; and Sweden, 3 percent. We are encouraged by the fiscal and monetary
discipline imposed upon the euro member countries, as it will likely increase
their competitiveness and efficiency in the context of the global economy.
THE PACIFIC RIM
The financial crisis in Asia that began in 1997 had far-reaching economic
implications across the globe but affected that region's emerging markets most
severely. As a result, the Fund sustained only minimal damage, as it has no
exposure to emerging markets. The Fund did have holdings in two Asian markets
deemed developed markets by the World Bank, namely, Hong Kong (2.0 percent) and
Malaysia (eliminated in July 1998). Following declines of 40 to 60 percent in
many high-quality stocks, the Fund increased its target weighting in Hong Kong
to 5 percent on the basis of extreme undervaluations there. Negative economic
conditions in Hong Kong improved late last fall and the equity market staged a
powerful recovery. Throughout this rise, the Fund gradually reduced its
weighting in Hong Kong from 5 percent to 2 percent, taking significant profits
along the way. Once again, for disciplined and value-oriented investors, extreme
investor pessimism created an exciting
3
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 1999, CONTINUED
and profitable investment opportunity. There are continuing signs of economic
improvement throughout the region, and the Fund remains poised to participate in
any possible resulting rise in the stock prices of high-quality companies in the
region.
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. Commodity prices worldwide
are near historic lows, and the shares of many commodity-related companies are
trading at quite attractive levels.
LOOKING AHEAD
We believe that the long-term outlook for the economies 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. We will remain sensitive to any developments that would necessitate
changes to the Fund's country allocations and portfolio holdings.
On May 1, 1999, Mitchell M. Merin was named President of the Morgan Stanley Dean
Witter Funds. Mr. Merin is the President and Chief Operating Officer of Asset
Management of Morgan Stanley Dean Witter & Co., and President, Chief Executive
Officer and Director of Morgan Stanley Dean Witter Advisors Inc., the Fund's
Investment Manager. He also serves as Chairman, Chief Executive Officer and
Director of the Fund's distributor and transfer agent.
We appreciate your ongoing support of Morgan Stanley Dean Witter Global Dividend
Growth Securities and look forward to continuing to serve your investment needs
in the future.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
[SIGNATURE]
MITCHELL M. MERIN
PRESIDENT
4
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND
GROWTH SECURITIES
FUND PERFORMANCE MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 -- CLASS B SHARES
($ in Thousands)
FUND MSCI WORLD (4) LIPPER (5)
<S> <C> <C> <C>
June-1993 $10,000 $10,000 $10,000
March-1994 $10,889 $10,741 $11,687
March-1995 $11,935 $11,801 $11,695
March-1996 $14,175 $14,321 $14,182
March-1997 $15,958 $15,632 $15,859
March-1998 $19,693 $20,708 $20,167
March-1999 $19,676(3) $23,410 $20,909
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS B
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- -------------------------------------------------------------------------------------------------------------------
CLASS B SHARES** CLASS A SHARES+
- -------------------------------------------------------- ----------------------------------------------------
PERIOD ENDED 3/31/99 PERIOD ENDED 3/31/99
- ------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 0.42%(1) (4.15)%(2) 1 Year 1.10%(1) (4.21 )%(2)
5 Years 12.68(1) 12.43(2) From Inception (7/28/97) 4.09(1) 0.79(2)
From Inception (6/30/93) 12.59(1) 12.49(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES++ CLASS D SHARES(++)
- ---------------------------------------------------- ----------------------------------------------------
PERIOD ENDED 3/31/99 PERIOD ENDED 3/31/99
- ------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 0.37%(1) (0.54)%(2) 1 Year 1.27%(1)
From Inception (7/28/97) 3.34(1) 3.34(2) From Inception (7/28/97) 4.31(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.
(3) Closing value after the deduction of a 1% CDSC, assuming a complete
redemption on March 31, 1999.
(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. 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, is unmanaged and should not be considered an investment.
There are currently 30 funds represented in this Index.
** The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%. The
CDSC declines to 0% after six years.
+ The maximum front-end sales charge for Class A is 5.25%.
++ 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 MARCH 31, 1999
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (98.6%)
AUSTRALIA (2.5%)
BUILDING MATERIALS
8,000,000 Pioneer International Ltd.......................................................... $ 15,887,880
--------------
CONTAINERS/PACKAGING
3,700,000 Amcor Ltd.......................................................................... 18,546,435
--------------
INTERNATIONAL BANKS
2,700,000 Australia & New Zealand Banking Group Ltd.......................................... 19,615,568
--------------
OIL & GAS PRODUCTION
5,700,000 Santos Ltd......................................................................... 16,491,924
--------------
PRECIOUS METALS
19,000,000 Normandy Mining Ltd................................................................ 15,189,930
--------------
TOTAL AUSTRALIA.................................................................... 85,731,737
--------------
CANADA (2.5%)
ALUMINUM
670,000 Alcan Aluminium Ltd................................................................ 17,260,942
--------------
CANADIAN OIL & GAS
1,000,000 Imperial Oil Ltd................................................................... 19,031,830
--------------
INTERNATIONAL BANKS
400,000 Toronto-Dominion Bank.............................................................. 18,328,912
--------------
MOVIES/ENTERTAINMENT
14,174 Seagram Co., Ltd................................................................... 711,990
--------------
MULTI-SECTOR COMPANIES
1,165,000 EdperBrascan Corp. (Class A)....................................................... 13,828,581
--------------
OIL/GAS TRANSMISSION
409,100 Enbridge Inc....................................................................... 18,135,501
--------------
TOTAL CANADA....................................................................... 87,297,756
--------------
FRANCE (6.7%)
AUTO PARTS: O.E.M.
1,200 Valeo S.A.......................................................................... 93,742
--------------
AUTOMOTIVE AFTERMARKET
450,000 Compagnie Generale des Etablissements Michelin (B Shares).......................... 20,146,556
--------------
BUILDING MATERIALS
193,000 Lafarge S.A........................................................................ 17,364,451
--------------
CABLE TELEVISION
10,960 Canal Plus......................................................................... 3,206,252
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONTAINERS/PACKAGING
350,000 Compagnie Generale d'Industrie et de Participations................................ $ 17,291,181
--------------
DIVERSIFIED MANUFACTURING
135,000 Compagnie de Saint-Gobain.......................................................... 21,382,987
--------------
ELECTRICAL PRODUCTS
150,000 Alcatel Alsthom.................................................................... 17,213,062
--------------
ENGINEERING & CONSTRUCTION
280 Vivendi............................................................................ 68,757
--------------
FARMING/SEEDS/MILLING
130,000 Eridania Beghin-Say S.A............................................................ 19,218,290
--------------
HOTELS/RESORTS
11,900 Accor S.A.......................................................................... 2,949,118
--------------
INTEGRATED OIL COMPANIES
160,000 Elf Aquitaine S.A.................................................................. 21,687,920
--------------
INTERNATIONAL BANKS
220,000 Banque Nationale de Paris.......................................................... 19,106,230
20,000 Credit Commercial de France........................................................ 1,841,448
110,000 Societe Generale................................................................... 21,097,450
--------------
42,045,128
--------------
MILITARY/GOV'T/TECHNICAL
3,000 Thomson CSF........................................................................ 91,480
--------------
MULTI-LINE INSURANCE
42,400 AXA................................................................................ 5,610,241
--------------
MULTI-SECTOR COMPANIES
1,100 Compagnie Financiere de Paribas.................................................... 122,555
35,000 Societe Eurafrance S.A............................................................. 16,782,063
--------------
16,904,618
--------------
OIL REFINING/MARKETING
170,000 Total S.A. (B Shares).............................................................. 20,900,268
--------------
TELECOMMUNICATIONS
66,400 France Telecom S.A. (ADR).......................................................... 5,357,650
--------------
TOTAL FRANCE....................................................................... 231,531,701
--------------
GERMANY (5.7%)
APPAREL
11,500 Hugo Boss AG (Pref.)............................................................... 15,117,325
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED MANUFACTURING
730,000 MAN AG............................................................................. $ 20,411,621
--------------
ELECTRICAL PRODUCTS
270,900 Siemens AG......................................................................... 18,068,285
--------------
ENGINEERING & CONSTRUCTION
750,000 Bilfinger & Berger Bau AG.......................................................... 14,061,375
--------------
INTERNATIONAL BANKS
340,000 Deutsche Bank Aktiengesellschaft................................................... 17,456,578
--------------
MAJOR CHEMICALS
500,000 BASF AG............................................................................ 18,263,625
460,000 Bayer AG........................................................................... 17,199,055
--------------
35,462,680
--------------
MOTOR VEHICLES
2,840 Bayerische Motoren Werke (BMW) AG.................................................. 1,857,481
568 Bayerische Motoren Werke (BMW) AG (New)*........................................... 361,704
200,000 DaimlerChrylser AG................................................................. 17,369,300
45,390 DaimlerChrysler AG (ADR)*.......................................................... 3,895,029
--------------
23,483,514
--------------
MULTI-SECTOR COMPANIES
390,000 RWE AG............................................................................. 17,229,225
1,000,000 Thyssen Krupp AG................................................................... 19,718,250
325,000 VEBA AG............................................................................ 17,054,131
--------------
54,001,606
--------------
TOTAL GERMANY...................................................................... 198,062,984
--------------
HONG KONG (1.8%)
MULTI-SECTOR COMPANIES
286,000 Hutchison Whampoa, Ltd............................................................. 2,251,387
--------------
REAL ESTATE
2,000,000 Cheung Kong (Holdings) Ltd......................................................... 15,227,772
3,100,000 Henderson Land Development Co., Ltd................................................ 15,081,946
--------------
30,309,718
--------------
TELECOMMUNICATIONS
8,000,000 Hong Kong Telecommunications Ltd................................................... 15,743,967
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
UTILITIES
2,998,000 CLP Holdings Ltd................................................................... $ 14,392,257
--------------
TOTAL HONG KONG.................................................................... 62,697,329
--------------
ITALY (2.3%)
INTEGRATED OIL COMPANIES
3,200,000 Ente Nazionale Idrocarburi SpA..................................................... 20,343,200
--------------
INTERNATIONAL BANKS
36,000 Banca Commerciale Italiana......................................................... 294,804
1,150,000 Istituto Bancario San Paolo di Torino SpA.......................................... 18,648,831
--------------
18,943,635
--------------
SPECIALTY FOODS/CANDY
18,000,000 Montedison SpA..................................................................... 18,619,200
--------------
TELECOMMUNICATIONS
276,000 Telecom Italia SpA (Ordinary Shares)............................................... 2,926,318
3,050,000 Telecom Italia SpA (Savings Shares)................................................ 18,075,062
--------------
21,001,380
--------------
TOTAL ITALY........................................................................ 78,907,415
--------------
JAPAN (17.3%)
AIR FREIGHT/DELIVERY SERVICES
2,480,000 Yamato Transport Co., Ltd.......................................................... 40,373,064
--------------
ALCOHOLIC BEVERAGES
3,000,000 Kirin Brewery Co., Ltd............................................................. 35,050,505
--------------
AUTO PARTS: O.E.M.
4,000 Bridgestone Corp................................................................... 101,683
--------------
CONSUMER ELECTRONICS/APPLIANCES
3,400,000 Sharp Corp......................................................................... 35,774,411
400,000 Sony Corp.......................................................................... 36,868,687
--------------
72,643,098
--------------
DIVERSIFIED COMMERCIAL SERVICES
20,000 Secom Co........................................................................... 1,888,889
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
675,000 Kyocera Corp....................................................................... 36,250,000
1,900,000 Matsushita Electric Industrial Co., Ltd............................................ 36,944,444
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
3,300,000 NEC Corp........................................................................... $ 39,583,333
--------------
112,777,777
--------------
ELECTRONIC COMPONENTS
450,000 TDK Corp........................................................................... 36,325,758
--------------
HOME BUILDING
3,300,000 Sekisui House Ltd.................................................................. 35,000,000
--------------
MAJOR PHARMACEUTICALS
955,000 Takeda Chemical Industries......................................................... 36,897,727
--------------
MOTOR VEHICLES
850,000 Honda Motor Co..................................................................... 38,278,620
1,300,000 Toyota Motor Corp.................................................................. 37,533,670
--------------
75,812,290
--------------
MULTI-SECTOR COMPANIES
3,500,000 Matsushita Electric Works, Ltd..................................................... 36,325,758
--------------
OTHER PHARMACEUTICALS
1,250,000 Taisho Pharmaceutical Co., Ltd..................................................... 38,930,976
--------------
OTHER TELECOMMUNICATIONS
117 Nippon Telegraph & Telephone Corp.................................................. 1,142,424
--------------
RECREATIONAL PRODUCTS/TOYS
420,000 Nintendo Co., Ltd.................................................................. 36,131,313
--------------
SEMICONDUCTORS
1,000 Rohm Co., Ltd...................................................................... 119,108
--------------
TOBACCO
3,800 Japan Tobacco, Inc................................................................. 36,784,512
--------------
TOTAL JAPAN........................................................................ 596,304,882
--------------
NETHERLANDS (3.7%)
AIRLINES
645,000 KLM Royal Dutch Air Lines NV....................................................... 18,069,675
--------------
BOOKS/MAGAZINES
61,800 VNU NV............................................................................. 2,403,881
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
275,000 Koninklijke (Royal) Philips Electronics NV......................................... 22,356,778
--------------
DIVERSIFIED FINANCIAL SERVICES
2,328 ING Groep NV....................................................................... 128,055
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
FINANCIAL PUBLISHING/SERVICES
12,298 Wolters Kluwer NV.................................................................. $ 2,226,184
--------------
FOOD CHAINS
40,319 Koninklijke Ahold NV............................................................... 1,542,252
--------------
INTERNATIONAL BANKS
900,000 ABN-AMRO Holding NV................................................................ 18,716,175
--------------
LIFE INSURANCE
47,108 Aegon NV........................................................................... 4,291,662
--------------
MAJOR CHEMICALS
50,600 Akzo Nobel NV...................................................................... 1,870,087
--------------
METALS FABRICATIONS
607,000 Koninklijke Hoogovens NV........................................................... 20,079,105
--------------
OILFIELD SERVICES/EQUIPMENT
148 Fugro NV........................................................................... 3,429
--------------
SPECIALTY CHEMICALS
210,000 DSM NV............................................................................. 18,000,176
--------------
TELECOMMUNICATIONS
450,000 KPN NV............................................................................. 17,867,644
--------------
TOTAL NETHERLANDS.................................................................. 127,555,103
--------------
SPAIN (1.6%)
FOOD CHAINS
5,100 Centros Comerciales Pryca S.A...................................................... 102,267
--------------
INTERNATIONAL BANKS
275,000 Banco Popular Espanol S.A.......................................................... 17,660,225
--------------
OIL REFINING/MARKETING
360,000 Repsol S.A......................................................................... 18,502,830
--------------
TELECOMMUNICATIONS
50,071 Telefonica S.A..................................................................... 2,119,754
--------------
UTILITIES
675,000 Endesa S.A......................................................................... 17,004,566
--------------
TOTAL SPAIN........................................................................ 55,389,642
--------------
SWEDEN (3.4%)
CONSUMER ELECTRONICS/APPLIANCES
1,000,000 Electrolux AB (Series B)........................................................... 19,767,400
--------------
ENGINEERING & CONSTRUCTION
545,000 Skanska AB (B Shares).............................................................. 18,506,167
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL MACHINERY/COMPONENTS
875,000 Sandvik AB (B Shares).............................................................. $ 17,402,588
--------------
INTERNATIONAL BANKS
2,450,000 Nordbanken Holding AB.............................................................. 13,964,516
--------------
LIFE INSURANCE
293,500 Skandia Forsakrings AB............................................................. 5,445,797
--------------
MAJOR PHARMACEUTICALS
80,000 Astra AB (B Shares)................................................................ 1,809,384
--------------
MOTOR VEHICLES
648,000 Volvo AB (B Shares)................................................................ 16,934,962
--------------
PACKAGE GOODS/COSMETICS
777,900 Svenska Cellulosa AB............................................................... 16,839,296
--------------
REAL ESTATE
300,000 Drott AB (B Shares)*............................................................... 2,637,674
--------------
TELECOMMUNICATIONS EQUIPMENT
101,000 Ericsson (L.M.) Telephone Co. AB (Series "B" Free)................................. 2,449,702
--------------
TOTAL SWEDEN....................................................................... 115,757,486
--------------
SWITZERLAND (4.9%)
ACCIDENT & HEALTH INSURANCE
11,500 Schweizerische Rueckversicherungs-Gesellschaft (Registered Shares)................. 25,427,019
--------------
INTERNATIONAL BANKS
8,500 Credit Suisse Group................................................................ 1,583,851
92,000 UBS AG (Registered)................................................................ 28,881,987
--------------
30,465,838
--------------
MAJOR PHARMACEUTICALS
2,315 Novartis AG........................................................................ 3,752,576
16,000 Novartis AG - Bearer............................................................... 26,032,946
350 Roche Holdings AG.................................................................. 4,265,123
--------------
34,050,645
--------------
OTHER TELECOMMUNICATIONS
70,000 Swisscom AG (Registered Shares)*................................................... 27,315,690
--------------
PACKAGED FOODS
14,500 Nestle S.A......................................................................... 26,323,589
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TOBACCO
16,500 Compagnie Financiere Richemont AG (Series A)....................................... $ 27,403,457
--------------
TOTAL SWITZERLAND.................................................................. 170,986,238
--------------
UNITED KINGDOM (11.4%)
AEROSPACE
15,984 British Aerospace PLC.............................................................. 106,639
303,268 Rolls-Royce PLC.................................................................... 1,280,437
--------------
1,387,076
--------------
AIRLINES
3,325,000 British Airways PLC................................................................ 23,013,630
--------------
ALCOHOLIC BEVERAGES
1,600,000 Bass PLC........................................................................... 21,697,236
129,600 Diageo PLC......................................................................... 1,453,599
--------------
23,150,835
--------------
CLOTHING/SHOE/ACCESSORY STORES
2,040,000 Next PLC........................................................................... 23,308,091
--------------
ENVIRONMENTAL SERVICES
10,200,000 Cookson Group PLC.................................................................. 23,605,607
--------------
INTEGRATED OIL COMPANIES
314,073 Shell Transport & Trading Co. PLC.................................................. 2,109,291
--------------
INTERNATIONAL BANKS
117,178 Abbey National PLC................................................................. 2,405,724
59,632 HSBC Holdings PLC.................................................................. 1,920,017
1,050,000 National Westminster Bank PLC...................................................... 24,162,831
1,200,000 Royal Bank of Scotland Group PLC................................................... 26,067,624
--------------
54,556,196
--------------
LIFE INSURANCE
85,621 Prudential Corp. PLC............................................................... 1,114,174
--------------
MAJOR PHARMACEUTICALS
108,846 Glaxo Wellcome PLC................................................................. 3,636,152
--------------
MOVIES/ENTERTAINMENT
6,470,000 Rank Group PLC..................................................................... 23,589,741
--------------
MULTI-LINE INSURANCE
67,077 CGU PLC............................................................................ 1,043,113
144,192 Royal & Sun Alliance Insurance Group PLC........................................... 1,358,176
--------------
2,401,289
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-SECTOR COMPANIES
185,441 General Electric Co. PLC........................................................... $ 1,669,011
2,700,000 Hanson PLC......................................................................... 24,170,083
251,400 Tomkins PLC........................................................................ 929,776
--------------
26,768,870
--------------
NON - U.S. UTILITIES
3,000,000 National Grid Group PLC............................................................ 21,839,854
2,800,000 National Power PLC................................................................. 21,523,194
--------------
43,363,048
--------------
OTHER METALS/MINERALS
1,750,000 Rio Tinto PLC...................................................................... 24,238,974
--------------
OTHER SPECIALTY STORES
128,000 Kingfisher PLC..................................................................... 1,610,984
--------------
PACKAGE GOODS/COSMETICS
7,000 Reckitt & Colman PLC............................................................... 75,636
--------------
PAPER
11,000,000 Arjo Wiggins Appleton PLC.......................................................... 24,817,100
--------------
STEEL/IRON ORE
11,600,000 British Steel PLC.................................................................. 23,880,818
--------------
TELECOMMUNICATIONS
277,921 British Telecommunications PLC..................................................... 4,527,963
--------------
TOBACCO
2,400,000 British American Tobacco PLC....................................................... 19,956,816
--------------
WATER SUPPLY
1,550,000 Hyder PLC.......................................................................... 19,532,992
1,350,000 Hyder PLC (Pref.)*................................................................. 2,670,457
1,550,000 Severn Trent PLC................................................................... 20,969,241
--------------
43,172,690
--------------
TOTAL UNITED KINGDOM............................................................... 394,284,981
--------------
UNITED STATES (34.8%)
AEROSPACE
630,000 Northrop Grumman Corp.............................................................. 37,721,250
--------------
ALUMINUM
1,000,000 Alcoa Inc.......................................................................... 41,187,500
--------------
AUTOMOTIVE AFTERMARKET
825,000 Goodyear Tire & Rubber Co.......................................................... 41,095,312
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BEVERAGES - NON-ALCOHOLIC
77,700 PepsiCo, Inc....................................................................... $ 3,044,869
--------------
BUILDING MATERIALS/DIY CHAINS
86,000 Home Depot, Inc. (The)............................................................. 5,353,500
--------------
COMPUTER HARDWARE
86,000 Compaq Computer Corp............................................................... 2,725,125
2,300 Hewlett-Packard Co................................................................. 155,969
235,000 International Business Machines Corp............................................... 41,653,750
--------------
44,534,844
--------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
1,030,000 Deere & Co......................................................................... 39,783,750
--------------
CONTAINERS/PACKAGING
1,430,000 Crown Cork & Seal Co., Inc......................................................... 40,844,375
--------------
DEPARTMENT STORES
900,000 Sears, Roebuck & Co................................................................ 40,668,750
--------------
DISCOUNT CHAINS
620,000 Dayton Hudson Corp................................................................. 41,307,500
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
39,000 Honeywell, Inc..................................................................... 2,956,687
--------------
DIVERSIFIED FINANCIAL SERVICES
98,500 Citigroup Inc...................................................................... 6,291,687
--------------
DIVERSIFIED MANUFACTURING
550,000 Minnesota Mining & Manufacturing Co................................................ 38,912,500
44,000 Trinity Industries, Inc............................................................ 1,292,500
--------------
40,205,000
--------------
ELECTRIC UTILITIES
701,800 FPL Group, Inc..................................................................... 37,370,850
1,055,000 GPU, Inc........................................................................... 39,364,687
--------------
76,735,537
--------------
ENGINEERING & CONSTRUCTION
1,430,000 Fluor Corp......................................................................... 38,610,000
--------------
FINANCE COMPANIES
935,000 Associates First Capital Corp. (Class A)........................................... 42,075,000
47,500 Fannie Mae......................................................................... 3,289,375
--------------
45,364,375
--------------
FOOD CHAINS
685,000 Albertson's, Inc................................................................... 37,204,062
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTEGRATED OIL COMPANIES
1,800 Atlantic Richfield Co.............................................................. $ 131,400
445,000 Chevron Corp....................................................................... 39,354,687
42,200 Exxon Corp......................................................................... 2,977,737
37,500 Mobil Corp......................................................................... 3,300,000
47,000 Texaco, Inc........................................................................ 2,667,250
--------------
48,431,074
--------------
LIFE INSURANCE
1,200,000 Conseco, Inc....................................................................... 37,050,000
--------------
MAJOR BANKS
600,000 BankAmerica Corp................................................................... 42,375,000
52,000 BankBoston Corp.................................................................... 2,252,250
46,000 Chase Manhattan Corp. (The)........................................................ 3,740,375
1,250,000 KeyCorp............................................................................ 37,890,625
--------------
86,258,250
--------------
MAJOR CHEMICALS
425,000 Dow Chemical Co.................................................................... 39,604,688
63,700 Monsanto Co........................................................................ 2,926,219
--------------
42,530,907
--------------
MAJOR PHARMACEUTICALS
71,000 American Home Products Corp........................................................ 4,632,750
650,000 Bristol-Myers Squibb Co............................................................ 41,803,125
36,200 Johnson & Johnson.................................................................. 3,391,488
66,000 Warner-Lambert Co.................................................................. 4,368,375
--------------
54,195,738
--------------
MEDIA CONGLOMERATES
82,200 Walt Disney Co..................................................................... 2,558,475
--------------
MID - SIZED BANKS
80,600 First Tennessee National Corp...................................................... 2,951,975
--------------
MILITARY/GOV'T/TECHNICAL
38,000 General Motors Corp. (Class H)*.................................................... 1,916,625
--------------
MOTOR VEHICLES
735,000 Ford Motor Co...................................................................... 41,711,250
--------------
MULTI-LINE INSURANCE
36,000 American International Group, Inc.................................................. 4,342,500
--------------
MULTI-SECTOR COMPANIES
33,000 General Electric Co................................................................ 3,650,625
1,400,000 Tenneco, Inc....................................................................... 39,112,500
--------------
42,763,125
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
NATURAL GAS
770,000 Consolidated Natural Gas Co........................................................ $ 37,489,375
--------------
OIL REFINING/MARKETING
925,000 Ashland, Inc....................................................................... 37,867,188
--------------
OILFIELD SERVICES/EQUIPMENT
1,800 Schlumberger, Ltd.................................................................. 108,338
--------------
OTHER METALS/MINERALS
811,800 Phelps Dodge Corp.................................................................. 39,981,150
--------------
OTHER SPECIALTY STORES
85,700 Pep Boys-Manny, Moe & Jack......................................................... 1,306,925
--------------
PACKAGED FOODS
35,900 General Mills, Inc................................................................. 2,712,694
--------------
PAPER
58,000 Bowater, Inc....................................................................... 2,298,250
59,200 Champion International Corp........................................................ 2,430,900
950,000 International Paper Co............................................................. 40,078,125
--------------
44,807,275
--------------
PHOTOGRAPHIC PRODUCTS
635,000 Eastman Kodak Co................................................................... 40,560,625
--------------
SAVINGS & LOAN ASSOCIATIONS
28,500 Golden West Financial Corp......................................................... 2,721,750
59,364 Washington Mutual, Inc............................................................. 2,426,504
--------------
5,148,254
--------------
SEMICONDUCTORS
36,800 Intel Corp......................................................................... 4,374,600
--------------
SPECIALTY STEELS
54,800 Nucor Corp......................................................................... 2,414,625
--------------
TOBACCO
1,050,000 Philip Morris Companies, Inc....................................................... 36,946,875
--------------
TOTAL UNITED STATES................................................................ 1,201,336,841
--------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $3,036,444,289)................................................... 3,405,844,095
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 1999, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (1.0%)
U.S. GOVERNMENT AGENCY
$ 35,000 Federal Home Loan Mortgage Corp. 4.82% due 04/01/99 (AMORTIZED COST $35,000,000)... $ 35,000,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $3,071,444,289) (b).................................................... 99.6 % 3,440,844,095
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.......................................... 0.4 14,094,395
------ ---------------
NET ASSETS.............................................................................. 100.0 % $ 3,454,938,490
------ ---------------
------ ---------------
</TABLE>
- ---------------------
* Non-income producing security.
ADR American Depository Receipt.
(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 $563,547,192 and the
aggregate gross unrealized depreciation is $194,147,386, resulting in net
unrealized appreciation of $369,399,806.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT MARCH 31, 1999:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,503,403 CHF 2,230,299 04/01/99 $ 2,334
$ 1,590,208 EUR 1,476,516 04/01/99 738
$ 1,991,406 EUR 1,849,031 04/01/99 925
GBP 424,280 $ 687,757 04/01/99 4,031
HKD 27,635,107 $ 3,566,142 04/01/99 (138)
CAD 2,430,306 $ 1,612,464 04/05/99 855
JPY 189,461,081 $ 1,598,288 04/05/99 3,498
GBP 303,891 $ 490,313 04/08/99 593
$ 1,387,983 EUR 1,286,718 04/30/99 (1,544)
-------
Net unrealized appreciation.................. $ 11,292
-------
-------
</TABLE>
CURRENCY ABBREVIATIONS:
<TABLE>
<S> <C>
GBP British Pound.
CAD Canadian Dollar.
EUR Euro.
HKD Hong Kong Dollar.
JPY Japanese Yen.
CHF Swiss Franc.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS MARCH 31, 1999
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ---------------------------------------------------------------------------------------
Accident & Health Insurance....................... $ 25,427,019 0.7%
Aerospace......................................... 39,108,326 1.1
Air Freight/Delivery Services..................... 40,373,064 1.2
Airlines.......................................... 41,083,305 1.2
Alcoholic Beverages............................... 58,201,340 1.7
Aluminum.......................................... 58,448,442 1.7
Apparel........................................... 15,117,325 0.4
Auto Parts: O.E.M................................. 195,425 0.0
Automotive Aftermarket............................ 61,241,868 1.8
Beverages - Non-Alcoholic......................... 3,044,869 0.1
Books/Magazines................................... 2,403,881 0.1
Building Materials................................ 33,252,331 1.0
Building Materials/DIY Chains..................... 5,353,500 0.2
Cable Television.................................. 3,206,252 0.1
Canadian Oil & Gas................................ 19,031,830 0.6
Clothing/Shoe/Accessory Stores.................... 23,308,091 0.7
Computer Hardware................................. 44,534,844 1.3
Construction/Agricultural Equipment/Trucks........ 39,783,750 1.2
Consumer Electronics/Appliances................... 92,410,498 2.7
Containers/Packaging.............................. 76,681,991 2.2
Department Stores................................. 40,668,750 1.2
Discount Chains................................... 41,307,500 1.2
Diversified Commercial Services................... 1,888,889 0.1
Diversified Electronic Products................... 138,091,242 4.0
Diversified Financial Services.................... 6,419,742 0.2
Diversified Manufacturing......................... 81,999,608 2.3
Electric Utilities................................ 76,735,537 2.2
Electrical Products............................... 35,281,347 1.0
Electronic Components............................. 36,325,758 1.1
Engineering & Construction........................ 71,246,299 2.1
Environmental Services............................ 23,605,607 0.7
Farming/Seeds/Milling............................. 19,218,290 0.6
Finance Companies................................. 45,364,375 1.3
Financial Publishing/Services..................... 2,226,184 0.1
Food Chains....................................... 38,848,581 1.1
Home Building..................................... 35,000,000 1.0
Hotels/Resorts.................................... 2,949,118 0.1
Industrial Machinery/Components................... 17,402,588 0.5
Integrated Oil Companies.......................... 92,571,485 2.7
International Banks............................... 251,752,771 7.2
Life Insurance.................................... 47,901,633 1.4
Major Banks....................................... 86,258,250 2.5
Major Chemicals................................... 79,863,674 2.3
Major Pharmaceuticals............................. 130,589,646 3.7
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Media Conglomerates............................... $ 2,558,475 0.1%
Metals Fabrications............................... 20,079,105 0.6
Mid-Sized Banks................................... 2,951,975 0.1
Military/Gov't/Technical.......................... 2,008,105 0.1
Motor Vehicles.................................... 157,942,016 4.5
Movies/Entertainment.............................. 24,301,731 0.7
Multi-Line Insurance.............................. 12,354,030 0.4
Multi-Sector Companies............................ 192,843,945 5.5
Natural Gas....................................... 37,489,375 1.1
Non-U.S. Utilities................................ 43,363,048 1.3
Oil & Gas Production.............................. 16,491,924 0.5
Oil Refining/Marketing............................ 77,270,286 2.2
Oil/Gas Transmission.............................. 18,135,501 0.5
Oilfield Services/Equipment....................... 111,767 0.0
Other Metals/Minerals............................. 64,220,124 1.9
Other Pharmaceuticals............................. 38,930,976 1.1
Other Specialty Stores............................ 2,917,909 0.1
Other Telecommunications.......................... 28,458,114 0.8
Package Goods/Cosmetics........................... 16,914,932 0.5
Packaged Foods.................................... 29,036,283 0.8
Paper............................................. 69,624,375 2.0
Photographic Products............................. 40,560,625 1.2
Precious Metals................................... 15,189,930 0.4
Real Estate....................................... 32,947,392 1.0
Recreational Products/Toys........................ 36,131,313 1.0
Savings & Loan Associations....................... 5,148,254 0.1
Semiconductors.................................... 4,493,708 0.1
Specialty Chemicals............................... 18,000,176 0.5
Specialty Foods/Candy............................. 18,619,200 0.5
Specialty Steels.................................. 2,414,625 0.1
Steel/Iron Ore.................................... 23,880,818 0.7
Telecommunications................................ 66,618,358 1.9
Telecommunications Equipment...................... 2,449,702 0.1
Tobacco........................................... 121,091,660 3.5
U.S. Government Agency............................ 35,000,000 1.0
Utilities......................................... 31,396,823 0.9
Water Supply...................................... 43,172,690 1.2
---------------- ---
$ 3,440,844,095 99.6%
---------------- ---
---------------- ---
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ---------------------------------------------------------------------------------------
Common Stocks..................................... $ 3,388,056,313 98.1%
Preferred Stocks.................................. 17,787,782 0.5
Short-Term Investment............................. 35,000,000 1.0
---------------- ---
$ 3,440,844,095 99.6%
---------------- ---
---------------- ---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $3,071,444,289).......................................................... $3,440,844,095
Cash........................................................................................ 6,015,933
Receivable for:
Investments sold........................................................................ 13,412,558
Dividends............................................................................... 12,908,774
Foreign withholding taxes reclaimed..................................................... 2,929,333
Shares of beneficial interest sold...................................................... 1,593,498
Prepaid expenses and other assets........................................................... 121,444
--------------
TOTAL ASSETS........................................................................... 3,477,825,635
--------------
LIABILITIES:
Payable for:
Investments purchased................................................................... 12,020,146
Shares of beneficial interest repurchased............................................... 5,342,472
Plan of distribution fee................................................................ 2,762,442
Investment management fee............................................................... 2,239,193
Accrued expenses and other payables......................................................... 522,892
--------------
TOTAL LIABILITIES...................................................................... 22,887,145
--------------
NET ASSETS............................................................................. $3,454,938,490
--------------
--------------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................. $3,005,592,094
Net unrealized appreciation................................................................. 369,257,636
Accumulated undistributed net investment income............................................. 11,002,413
Accumulated undistributed net realized gain................................................. 69,086,347
--------------
NET ASSETS............................................................................. $3,454,938,490
--------------
--------------
CLASS A SHARES:
Net Assets.................................................................................. $35,673,091
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 2,702,471
NET ASSET VALUE PER SHARE.............................................................. $13.20
--------------
--------------
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET
ASSET VALUE).......................................................................... $13.93
--------------
--------------
CLASS B SHARES:
Net Assets.................................................................................. $3,342,589,020
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 253,378,824
NET ASSET VALUE PER SHARE.............................................................. $13.19
--------------
--------------
CLASS C SHARES:
Net Assets.................................................................................. $13,663,597
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 1,037,744
NET ASSET VALUE PER SHARE.............................................................. $13.17
--------------
--------------
CLASS D SHARES:
Net Assets.................................................................................. $63,012,782
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 4,769,092
NET ASSET VALUE PER SHARE.............................................................. $13.21
--------------
--------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $7,860,003 foreign withholding tax)........................................ $ 84,934,913
Interest..................................................................................... 6,711,850
-------------
TOTAL INCOME............................................................................ 91,646,763
-------------
EXPENSES
Plan of distribution fee (Class A shares).................................................... 56,340
Plan of distribution fee (Class B shares).................................................... 31,148,040
Plan of distribution fee (Class C shares).................................................... 114,981
Investment management fee.................................................................... 25,829,311
Transfer agent fees and expenses............................................................. 4,554,228
Custodian fees............................................................................... 1,960,370
Shareholder reports and notices.............................................................. 311,600
Registration fees............................................................................ 125,663
Professional fees............................................................................ 87,818
Trustees' fees and expenses.................................................................. 23,028
Organizational expenses...................................................................... 8,995
Other........................................................................................ 61,225
-------------
TOTAL EXPENSES.......................................................................... 64,281,599
-------------
NET INVESTMENT INCOME................................................................... 27,365,164
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments.............................................................................. 245,874,016
Foreign exchange transactions............................................................ (337,553)
-------------
NET GAIN................................................................................ 245,536,463
-------------
Net change in unrealized appreciation/ depreciation on:
Investments.............................................................................. (291,846,106)
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies...................................................... 108,375
-------------
NET DEPRECIATION........................................................................ (291,737,731)
-------------
NET LOSS................................................................................ (46,201,268)
-------------
NET DECREASE................................................................................. $ (18,836,104)
-------------
-------------
</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>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income...................................................... $ 27,365,164 $ 28,536,934
Net realized gain.......................................................... 245,536,463 424,639,725
Net change in unrealized appreciation...................................... (291,737,731) 270,061,046
-------------- ---------------
NET INCREASE (DECREASE)............................................... (18,836,104) 723,237,705
-------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares......................................................... (261,174) (89,450)
Class B shares......................................................... (18,635,895) (30,169,703)
Class C shares......................................................... (56,045) (44,631)
Class D shares......................................................... (571,271) (173,106)
Net realized gain
Class A shares......................................................... (1,843,310) (565,637)
Class B shares......................................................... (316,814,401) (405,262,485)
Class C shares......................................................... (1,049,978) (502,865)
Class D shares......................................................... (3,084,811) (1,032,962)
-------------- ---------------
TOTAL DIVIDENDS AND DISTRIBUTIONS..................................... (342,316,885) (437,840,839)
-------------- ---------------
Net increase (decrease) from transactions in shares of beneficial
interest................................................................. (38,312,266) 530,515,791
-------------- ---------------
NET INCREASE (DECREASE)............................................... (399,465,255) 815,912,657
NET ASSETS:
Beginning of period........................................................ 3,854,403,745 3,038,491,088
-------------- ---------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $11,002,413 AND
DIVIDENDS IN EXCESS OF NET INVESTMENT INCOME OF $2,122,966,
RESPECTIVELY).......................................................... $3,454,938,490 $ 3,854,403,745
-------------- ---------------
-------------- ---------------
</TABLE>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Global Dividend Growth Securities (the "Fund"),
formerly Dean Witter Global Dividend Growth Securities, 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 stocks
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 commenced offering three additional classes of shares, with the then
current shares designated as Class B shares.
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"), formerly Dean Witter InterCapital Inc., 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
16
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
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-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 MARCH 31, 1999, 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.
H. ORGANIZATIONAL EXPENSES -- The Investment Manager paid the organizational
expenses of approximately $180,000 which have been reimbursed for the full
amount thereof. Such expenses were deferred and fully amortized as of June 29,
1998.
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; and 0.65% to the
portion of daily net assets exceeding $3.5 billion. Effective May 1, 1998, the
Agreement was amended to reduce the annual fee to 0.625% of the portion of daily
net assets in excess of $4.5 billion.
18
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
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 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, 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
19
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
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 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 $73,697,610 at
March 31, 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 year ended March 31, 1999, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.22% and
0.95%, respectively.
The Distributor has informed the Fund that for the year ended March 31, 1999, it
received contingent deferred sales charges from certain redemptions of the
Fund's Class A, Class B and Class C shares of $337, $5,108,028 and $11,342,
respectively and received $86,379 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 year ended March 31, 1999 aggregated
$1,655,852,492 and $2,208,885,932, respectively.
For the year ended March 31, 1999, the Fund incurred $92,945 in brokerage
commissions with DWR for portfolio transactions executed on behalf of the Fund.
For the year ended March 31, 1999, the Fund incurred brokerage commissions of
$1,498,179 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager and Distributor, for portfolio transactions executed on behalf of the
Fund. At March 31, 1999, included in the Fund's payable for investments
purchased were unsettled trades with Morgan Stanley & Co., Inc. for $4,102,926.
20
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
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 the last five years
of service. Aggregate pension costs for the year ended March 31, 1999 included
in Trustees' fees and expenses in the Statement of Operations amounted to
$10,766. At March 31, 1999, the Fund had an accrued pension liability of $57,480
which is included in accrued expenses in the Statement of Assets and
Liabilities.
5. 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 ("PFICs") and permanent
book/tax differences primarily attributable to foreign currency losses and tax
adjustments on PFICs sold by the Fund. To reflect reclassifications arising from
the permanent differences, accumulated undistributed net realized gain was
charged $5,304,758, paid-in capital was charged $83,170 and accumulated
undistributed net investment income was credited $5,387,928.
6. 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, 1999, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
21
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
7. 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, 1999 MARCH 31, 1998*
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ---------------- ------------ --------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 2,445,885 $ 31,514,500 885,238 $ 12,442,665
Reinvestment of dividends and distributions...................... 151,674 1,988,984 47,429 606,606
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... 60,400 813,198 -- --
Redeemed......................................................... (858,155) (11,314,041) (30,000) (424,056)
------------ ---------------- ------------ --------------
Net increase - Class A........................................... 1,799,804 23,002,641 902,667 12,625,215
------------ ---------------- ------------ --------------
CLASS B SHARES
Sold............................................................. 21,502,359 286,062,777 54,063,092 772,136,946
Reinvestment of dividends and distributions...................... 23,576,064 312,457,447 30,559,475 405,815,115
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... 21,617,480 291,123,802 -- --
Redeemed......................................................... (77,262,606) (1,000,267,017) (49,060,405) (689,166,941)
------------ ---------------- ------------ --------------
Net increase (decrease) - Class B................................ (10,566,703) (110,622,991) 35,562,162 488,785,120
------------ ---------------- ------------ --------------
CLASS C SHARES
Sold............................................................. 580,330 7,763,468 697,103 9,960,568
Reinvestment of dividends and distributions...................... 78,973 1,043,840 40,593 516,939
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... 5,717 76,885 -- --
Redeemed......................................................... (300,803) (3,913,266) (64,169) (887,746)
------------ ---------------- ------------ --------------
Net increase - Class C........................................... 364,217 4,970,927 673,527 9,589,761
------------ ---------------- ------------ --------------
CLASS D SHARES
Sold............................................................. 1,733,498 22,835,792 1,378,903 19,481,908
Reinvestment of dividends and distributions...................... 275,791 3,602,567 93,459 1,196,710
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......................................................... (2,035,926) (25,821,930) (84,983) (1,162,923)
------------ ---------------- ------------ --------------
Net increase - Class D........................................... 3,381,713 44,337,157 1,387,379 19,515,695
------------ ---------------- ------------ --------------
Net increase (decrease) in Fund.................................. (5,020,969) $ (38,312,266) 38,525,735 $ 530,515,791
------------ ---------------- ------------ --------------
------------ ---------------- ------------ --------------
</TABLE>
- ---------------------
* For Class A, C and D, for the period July 28, 1997 (issue date) through
March 31, 1998.
22
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999, CONTINUED
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 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 YEAR ENDED MARCH 31
---------------------------------------------------
1999++ 1998*++ 1997 1996 1995
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $ 14.44 $ 13.30 $ 12.86 $ 11.41 $ 10.81
------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income.......................... 0.10 0.11 0.12 0.13 0.14
Net realized and unrealized gain (loss)........ (0.06) 2.79 1.44 1.96 0.88
------- ------- ------- ------- -------
Total income from investment operations........... 0.04 2.90 1.56 2.09 1.02
------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income.......................... (0.07) (0.12) (0.13) (0.15) (0.14)
Net realized gain.............................. (1.22) (1.64) (0.99) (0.49) (0.28)
------- ------- ------- ------- -------
Total dividends and distributions................. (1.29) (1.76) (1.12) (0.64) (0.42)
------- ------- ------- ------- -------
Net asset value, end of period.................... $ 13.19 $ 14.44 $ 13.30 $ 12.86 $ 11.41
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN+..................................... 0.42% 23.41% 12.58% 18.77% 9.60%
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 1.78%(1) 1.71% 1.75% 1.85% 1.97%
Net investment income............................. 0.74%(1) 0.80% 0.93% 1.05% 1.22%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions............ $ 3,343 $ 3,812 $ 3,038 $ 2,434 $ 1,854
Portfolio turnover rate........................... 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) 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 PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
MARCH 31, 1999 MARCH 31, 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 14.43 $ 14.91
------ ------
Income (loss) from investment operations:
Net investment income.............................................. 0.17 0.09
Net realized and unrealized gain (loss)............................ (0.04) 0.62
------ ------
Total income from investment operations............................... 0.13 0.71
------ ------
Less dividends and distributions from:
Net investment income.............................................. (0.14) (0.16)
Net realized gain.................................................. (1.22) (1.03)
------ ------
Total dividends and distributions..................................... (1.36) (1.19)
------ ------
Net asset value, end of period........................................ $ 13.20 $ 14.43
------ ------
------ ------
TOTAL RETURN+......................................................... 1.10% 5.77%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.12%(3) 1.17%(2)
Net investment income................................................. 1.39%(3) 1.02%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $35,673 $13,027
Portfolio turnover rate............................................... 47% 51%(1)
</TABLE>
<TABLE>
<S> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 14.42 $ 14.91
------ ------
Income (loss) from investment operations:
Net investment income.............................................. 0.08 0.02
Net realized and unrealized gain (loss)............................ (0.05) 0.62
------ ------
Total income from investment operations............................... 0.03 0.64
------ ------
Less dividends and distributions from:
Net investment income.............................................. (0.06) (0.10)
Net realized gain.................................................. (1.22) (1.03)
------ ------
Total dividends and distributions..................................... (1.28) (1.13)
------ ------
Net asset value, end of period........................................ $ 13.17 $ 14.42
------ ------
------ ------
TOTAL RETURN+......................................................... 0.37% 5.26%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.85%(3) 1.92%(2)
Net investment income................................................. 0.66%(3) 0.24%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $13,664 $9,711
Portfolio turnover rate............................................... 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
25
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
MARCH 31, 1999 MARCH 31, 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 14.44 $ 14.91
------ ------
Income (loss) from investments operations:
Net investment income.............................................. 0.20 0.11
Net realized and unrealized gain (loss)............................ (0.05) 0.62
------ ------
Total income from investment operations............................... 0.15 0.73
------ ------
Less dividends and distributions from:
Net investment income.............................................. (0.16) (0.17)
Net realized gain.................................................. (1.22) (1.03)
------ ------
Total dividends and distributions..................................... (1.38) (1.20)
------ ------
Net asset value, end of period........................................ $ 13.21 $ 14.44
------ ------
------ ------
TOTAL RETURN+......................................................... 1.27% 5.97%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.90%(3) 0.92%(2)
Net investment income................................................. 1.61%(3) 1.21%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $63,013 $20,032
Portfolio turnover rate............................................... 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
26
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND
GROWTH SECURITIES
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY 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 Morgan Stanley Dean Witter Global
Dividend Growth Securities (the "Fund"), formerly Dean Witter Global Dividend
Growth Securities, at March 31, 1999, 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 periods
indicated, 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, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
MAY 14, 1999
1999 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended March 31, 1999, the Fund paid to its
shareholders $1.07 per share from long-term capital gains. For
such period, 37.18% of the income paid qualified for the dividends
received deduction available to corporations.
In addition, 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, of which 100% would be allowable as a
credit. The Fund generated net foreign source income of $0.09 per
share with respect to this election.
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
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.
MORGAN STANLEY
DEAN WITTER
GLOBAL DIVIDEND
GROWTH SECURITIES
[GRAPHIC]
ANNUAL REPORT
MARCH 31, 1999
