<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH TWO WORLD TRADE CENTER,
SECURITIES NEW YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS MARCH 31, 2000
DEAR SHAREHOLDER:
The 12-month period ended March 31, 2000, may have marked the beginning of a new
period of outperformance by the international equity markets. After several
years of strong returns from the U.S. stock market, events of the last twelve
months suggest that a change in leadership may be afoot. While the factors that
drive the direction of stock prices are constantly changing, we remain
optimistic about the long-term prospects for the high-quality companies sought
out by Morgan Stanley Dean Witter Global Dividend Growth Securities.
PERFORMANCE
For the 12-month period ended March 31, 2000, the Fund's Class B shares posted a
total return of 7.30 percent, compared with 21.87 percent for the Morgan Stanley
Capital International (MSCI ) World Index. For the same period, the Fund's A, C
and D shares posted total returns of 8.00 percent, 7.22 percent and 8.28
percent, respectively. The performance of the Fund's four share classes varies
because each class has different expenses. The total return figures given assume
the reinvestment of all distributions but do not reflect the deduction of any
applicable sales charges. The accompanying chart compares the Fund's performance
to that of the MSCI World Index.
In nearly every major country market during the period, the equity indexes,
which measure the general performance of stocks, were dominated by relatively
few industries -- namely technology, telecommunications and media. The very
strong performance by these three sectors masked the benign performance
exhibited by nearly all other industries of the global economy. Global
technology, media and telecommunications stocks have risen 95 percent since the
end of 1998 and are up 432 percent since the end of 1994, a 37.5 percent
annualized return in just over five years. In contrast, the "old economy"
industries were down 1.3 percent year to date as of March 31, but were up 12.4
percent since the end of 1998 and 87 percent since the end of 1994, a 12.6
percent annualized return.
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 2000, CONTINUED
Because most technology stocks generally pay little if any dividends, they do
not make up a large portion of the Fund's portfolio. The Fund's technology
holdings have included established companies like IBM, Intel and Hewlett-Packard
rather than the more speculative dot-com startups. We believe that many
technology stocks are currently overvalued and that investors in this fund will
be rewarded with lower volatility as these stocks return to reasonable
valuations, due to the fact that currently the Fund is extremely underweighted
in technology and telecommunications versus the MSCI World Index.
The industries where the Fund is overweighted versus the MSCI World Index
include financial services, consumer staples, consumer durables, industrial
materials such as chemicals, metals, and paper and forest products, and,
finally, utilities. The fascination that investors have had with technology has
created extremely attractive opportunities in many other traditional sectors,
which the Fund has sought to take advantage of.
An incredible amount of attention has been focused on new Internet companies
entering existing markets and challenging the incumbent players with the promise
of rendering the existing participants obsolete. Clearly, the Internet has
tremendous potential to change the competitive landscape of most industries. We
believe that the long-term beneficiaries of this trend are likely to be the
incumbent industry players that embrace the Internet and employ these new
technologies to enhance their competitive advantage. In addition to the usual
comprehensive, rigorous analysis that has always driven our stock selection
process, each company we invest in must now have demonstrable strategies
designed to excel in the new economic landscape.
UNITED STATES
The U.S. economy grew by 7.3 percent in the fourth quarter of 1999 and it
appears that the first quarter of 2000 was also strong. Fiscal stimulus has been
adding strength to the economy. For example, state and local spending was up 8.6
percent in the last quarter of 1999 from one year earlier, the fastest pace in
10 years. Despite these impressive figures, it is important to be mindful of
early signs of slowing economic growth. Among these are slightly lower consumer
confidence, weaker housing data and slower real disposable personal income
growth.
Consumer spending in the United States has risen dramatically in recent years,
fueling rapid economic growth here. Consumption expenditures were up 3.4 percent
in 1997, 4.9 percent in 1998 and 5.3 percent in 1999. Recognizing that rapid
spending can lead to inflation through an imbalance in supply and demand for
goods and services, the Fed has raised short-term interest rates five times
since last June in an effort to slow the economic expansion. So far, these
increases do not seem to
2
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 2000, CONTINUED
have had a noticeable impact. Many argue that the gains in the equity market
have more than offset the higher borrowing costs, a phenomenon known as the
wealth effect. Presumably, a period of weakness in equity markets could curtail
the strong consumer spending, which has worried Fed policymakers.
We expect the U.S. equity market's returns to be lower in coming years than they
have been in the past five years, because the anticipated fantastic performance
of the economy and corporate profits seem fully priced into the U.S. market, as
evidenced by record high valuations. Sooner or later, investors will once again
focus on the valuations of stocks, which is likely to prove more damaging to
some sectors than others. Accordingly, the Fund remains committed to the more
attractively valued sectors of the market, where expectations seem much more
realistic. We are currently targeting 31 percent of the Fund's net assets toward
U.S. equity investments, versus the MSCI World Index's weighting of 49.2
percent.
JAPAN
Japan has recently endured several noteworthy setbacks: its economy dipped back
into recession late last year, many Japanese companies are struggling to compete
in the fast-changing global economy, government debt continues to rise and an
unanticipated transfer of power to a new prime minister has created political
uncertainty. Despite these stumbling blocks, however, Japan's equity market has
continued to perform very well. During the period, Japanese stocks outperformed
both the European and U.S. stock markets handsomely, returning more than 45
percent, as measured in U.S. dollar terms.
Evidence suggests that the market has been driven by domestic Japanese retail
investors more than by foreign institutional investors for the first time in
many years. There has been a tsunami of new mutual fund offerings in the past
year, driven by individual investor interest in equity investing. As spending by
consumers and businesses on information technology grows, the Japanese economy
will likely undergo a transformation similar to the one the U.S. economy has
already experienced. It appears that the worst of Japan's economic malaise may
now be past.
The Fund remains slightly overweighted in Japan, targeting approximately 15.5
percent of its net assets there versus 13.5 percent for the MSCI World Index.
Business sentiment among Japan's corporate leaders is also improving, lending
credence to the improved economic optimism among global investors and the hope
for a self-sustaining economic recovery. More than one strategist has drawn a
parallel of Japan today with the United States in 1991-1992. The argument
centers around evidence that corporations are aggressively restructuring,
reducing their head counts in order to
3
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 2000, CONTINUED
improve profits in light of minimal revenue growth. Recent data suggests that
corporate Japan is laying off workers as part of an aggressive restructuring, as
well as striking up strategic alliances and investing in new technologies. If
the comparison is accurate, this could prove to be a rewarding period for
investors in Japan.
EUROPE
The European markets also outperformed the United States during the period, with
the MSCI Europe Index up 18.49 percent. Despite the Fund's limited exposure to
technology and telecommunications, our overweighted stance in Europe has been
rewarding. We are currently targeting 33.5 percent of the Fund's net assets
toward continental European markets and 12.0 percent toward the United Kingdom,
versus 21.9 percent and 9.6 percent, respectively, for the MSCI World Index.
Economic growth in Europe is accelerating, fueling the strongest period of real
corporate profit growth there in 10 years. Other positives likely to continue to
drive European markets higher include a benign inflation outlook, widespread
corporate restructuring and merger activity. As Europe's economy gains momentum
relative to that of the United States, we expect the euro to appreciate against
the U.S. dollar, further enhancing our investment performance there. Overall, we
remain optimistic about the long-term prospects for the Fund's U.K. and European
holdings. The most recent addition to the Fund's European portfolio was Unilever
NV in the Netherlands. We believe that shares in Unilever, a world-class
blue-chip company, represent very good value following a prolonged period of
share price underperformance. It is exactly this correlation of factors -- a
strong global company whose shares are deeply undervalued -- that illustrates
our prudent yet opportunistic portfolio management style.
PACIFIC RIM
Hong Kong is the only Asian market outside Japan that the Fund has exposure to.
Over the last 12 months, the MSCI Hong Kong Index returned 50.29 percent,
continuing its strong rebound from the lows that followed the Asian currency
crisis more than two years ago. Economic growth in the region appears to be back
on firm footing, driven by strong personal consumption and capital expenditures.
The Fund is currently targeting 2.5 percent of net assets toward Hong Kong
investments, versus a 1.1 percent weighting in the MSCI World Index. At current
prices much of Asia's recovery seems well discounted, but we remain optimistic
about further strength in economic activity, corporate profits and thus share
prices.
4
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
LETTER TO THE SHAREHOLDERS MARCH 31, 2000, CONTINUED
CANADA AND AUSTRALIA
The Fund remains exposed to two of the world's most resource-oriented countries,
Canada and Australia. We are currently targeting 2.5 percent of assets to each
of those markets, representing a slight overweighting versus the MSCI World
Index. As global economic growth persists, we believe that demand for some of
the natural resources produced in these countries should remain high, providing
support for both the currencies and the equity markets of Canada and Australia.
LOOKING AHEAD
Despite our previously stated concern about the valuations of technology, media
and telecommunication stocks around the world, we remain highly optimistic about
the long-term prospects for the stocks of well-established, large-capitalization
international companies in other global industries. We believe it is a very
exciting time to invest globally and will remain sensitive to any developments
that would necessitate a change to the Fund's country allocations and portfolio
holdings.
We appreciate your ongoing support of Morgan Stanley Dean Witter Global Dividend
Growth Securities and look forward to continuing to serve your investment needs.
Very truly yours,
/S/ CHARLES A. FIUMEFREDDO /S/ MITCHELL M. MERIN
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT
5
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH
SECURITIES
FUND PERFORMANCE MARCH 31, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GROWTH OF $10,000 - CLASS B SHARES
($ in Thousands)
<TABLE>
<CAPTION>
FUND MSCI WORLD (4)
<S> <C> <C>
June 1993 $10,000 $10,000
March 1994 $10,889 $10,703
March 1995 $11,935 $11,701
March 1996 $14,175 $14,043
March 1997 $15,958 $15,357
March 1998 $19,693 $20,265
March 1999 19,776 $22,827
March 2000 $21,220(3) $27,819
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. 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**
--------------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 7.30%(1) 2.58%(2) 1 Year 8.00%(1) 2.33%(2)
5 Year 12.20 (1) 11.94 (2) Since Inception (7/28/97) 5.53 (1) 3.42 (2)
Since Inception (6/30/93) 11.79 (1) 11.79 (2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES+ CLASS D SHARES#
--------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 7.22%(1) 6.27%(2) 1 Year 8.28%(1)
Since Inception (7/28/97) 4.77 (1) 4.77 (2) Since Inception (7/28/97) 5.77 (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 assuming a complete redemption on March 31, 2000.
(4) The Morgan Stanley Capital International World Index (MSCI) measures
performance from a diverse range of global stock markets including the
U.S., Canada, Europe, Australia, New Zealand, and the Far East. The
performance of the Index is listed in U.S. dollars and assumes reinvestment
of net dividends. "Net dividends" reflects a reduction in dividends after
taking into account withholding of taxes by certain foreign countries
represented in the index. The index does not take into account the Fund's
expenses, fees, or charges. The index is unmanaged and should not be
considered an investment.
* 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.
6
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 2000
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON & PREFERRED STOCKS (94.7%)
AUSTRALIA (1.7%)
AIRLINES
5,000,000 Quantas Airways Ltd............................................................... $ 10,452,440
--------------
CONTAINERS/PACKAGING
2,750,000 Amcor Ltd......................................................................... 9,539,067
--------------
INTERNATIONAL BANKS
1,800,000 Australia & New Zealand Banking Group Ltd......................................... 11,376,144
--------------
OIL & GAS PRODUCTION
4,500,000 Santos Ltd........................................................................ 10,544,810
--------------
PRECIOUS METALS
20,000,000 Normandy Mining Ltd............................................................... 10,573,980
--------------
TOTAL AUSTRALIA................................................................... 52,486,441
--------------
BELGIUM (0.6%)
DIVERSIFIED FINANCIAL SERVICES
750,000 Fortis (B Shares)................................................................. 19,209,570
--------------
CANADA (2.2%)
ALUMINUM
350,000 Alcan Aluminium Ltd............................................................... 11,714,926
--------------
CANADIAN OIL & GAS
675,000 Imperial Oil Ltd.................................................................. 13,960,703
--------------
INTERNATIONAL BANKS
550,000 Toronto-Dominion Bank............................................................. 14,560,496
--------------
MULTI-SECTOR COMPANIES
1,000,000 EdperBrascan Corp. (Class A)...................................................... 12,409,514
--------------
OIL/GAS TRANSMISSION
720,000 Enbridge Inc...................................................................... 14,618,408
--------------
TOTAL CANADA...................................................................... 67,264,047
--------------
FRANCE (7.0%)
AUTOMOTIVE AFTERMARKET
600,000 Compagnie Generale des Etablissements Michelin (B Shares)......................... 19,232,507
--------------
BUILDING MATERIALS
243,216 Lafarge S.A....................................................................... 20,710,540
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED MANUFACTURING
150,000 Compagnie de Saint-Gobain......................................................... $ 19,137,893
--------------
FARMING/SEEDS/MILLING
105,000 Eridania Beghin-Say S.A........................................................... 8,750,389
--------------
INTERNATIONAL BANKS
255,000 Banque Nationale de Paris......................................................... 20,105,539
110,000 Societe Generale.................................................................. 21,908,467
--------------
42,014,006
--------------
MULTI-LINE INSURANCE
450,000 Assurances Generales de France.................................................... 23,245,013
--------------
MULTI-SECTOR COMPANIES
285,000 Compagnie Generale d'Industrie et de Participations............................... 15,933,908
36,750 Societe Eurafrance S.A............................................................ 16,682,938
--------------
32,616,846
--------------
OIL REFINING/MARKETING
160,000 Total Fina Elf.................................................................... 23,930,728
--------------
TELECOMMUNICATION EQUIPMENT
90,000 Alcatel........................................................................... 19,722,781
--------------
TOTAL FRANCE...................................................................... 209,360,703
--------------
GERMANY (7.8%)
APPAREL
400,000 Adidas-Salomon AG................................................................. 22,172,240
165,000 Hugo Boss AG (Pref.).............................................................. 22,076,670
--------------
44,248,910
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
135,000 Siemens AG (Registered Shares).................................................... 19,417,435
--------------
DIVERSIFIED MANUFACTURING
600,000 MAN AG............................................................................ 21,904,644
--------------
INTERNATIONAL BANKS
285,000 Deutsche Bank AG (Registered Shares).............................................. 18,916,409
--------------
MAJOR CHEMICALS
460,000 BASF AG........................................................................... 21,805,251
540,000 Bayer AG.......................................................................... 24,204,058
--------------
46,009,309
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 2000, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MOTOR VEHICLES
325,000 DaimlerChrysler AG................................................................ $ 21,245,211
--------------
MULTI-SECTOR COMPANIES
615,000 RWE AG............................................................................ 21,982,056
800,000 Thyssen Krupp AG.................................................................. 19,687,420
440,000 VEBA AG........................................................................... 22,455,127
--------------
64,124,603
--------------
TOTAL GERMANY..................................................................... 235,866,521
--------------
HONG KONG (2.0%)
REAL ESTATE
1,150,000 Cheung Kong (Holdings) Ltd........................................................ 17,205,399
2,540,000 Henderson Land Development Co., Ltd............................................... 11,906,046
--------------
29,111,445
--------------
TELECOMMUNICATIONS
5,350,000 Cable & Wireless HKT Ltd.......................................................... 14,016,027
--------------
UTILITIES
3,500,000 CLP Holdings Ltd.................................................................. 15,641,856
--------------
TOTAL HONG KONG................................................................... 58,769,328
--------------
ITALY (2.0%)
INTEGRATED OIL COMPANIES
4,450,000 Ente Nazionale Idrocarburi SpA.................................................... 22,242,484
--------------
INTERNATIONAL BANKS
1,500,000 San Paolo - IMI SpA............................................................... 20,514,100
--------------
TELECOMMUNICATIONS
2,700,000 Telecom Italia SpA................................................................ 18,372,377
--------------
TOTAL ITALY....................................................................... 61,128,961
--------------
JAPAN (16.3%)
ALCOHOLIC BEVERAGES
2,300,000 Kirin Brewery Co., Ltd............................................................ 28,123,053
--------------
CONSUMER ELECTRONICS/APPLIANCES
1,400,000 Sharp Corp........................................................................ 29,916,277
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
100,000 Sony Corp......................................................................... $ 14,116,043
100,000 Sony Corp. (New).................................................................. 14,213,396
--------------
58,245,716
--------------
DEPARTMENT STORES
1,650,000 Marui Co. Ltd..................................................................... 29,829,147
--------------
DIVERSIFIED ELECTRONIC PRODUCTS
184,000 Kyocera Corp...................................................................... 30,738,318
930,000 Matsushita Electric Industrial Co., Ltd........................................... 27,794,977
950,000 NEC Corp.......................................................................... 28,022,780
--------------
86,556,075
--------------
ELECTRICAL PRODUCTS
3,000,000 Matsushita Electric Works, Ltd.................................................... 31,220,794
--------------
ELECTRONIC COMPONENTS
220,000 TDK Corp.......................................................................... 29,941,589
--------------
FINANCE COMPANIES
250,000 Acom Co., Ltd..................................................................... 27,039,525
--------------
HOME BUILDING
3,280,000 Sekisui House Ltd................................................................. 30,047,508
--------------
MAJOR PHARMACEUTICALS
447,000 Takeda Chemical Industries, Ltd................................................... 31,766,939
--------------
MOTOR VEHICLES
700,000 Honda Motor Co.................................................................... 28,894,081
590,000 Toyota Motor Corp................................................................. 30,844,042
--------------
59,738,123
--------------
OTHER PHARMACEUTICALS
840,000 Taisho Pharmaceutical Co., Ltd.................................................... 28,948,598
--------------
RECREATIONAL PRODUCTS/TOYS
150,000 Nintendo Co., Ltd................................................................. 26,358,061
--------------
TOBACCO
3,400 Japan Tobacco, Inc................................................................ 24,328,271
--------------
TOTAL JAPAN....................................................................... 492,143,399
--------------
NETHERLANDS (5.1%)
AIRLINES
1,000,000 Koninklijke Luchtvaart Maatschappi NV............................................. 21,359,895
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 2000, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED ELECTRONIC PRODUCTS
110,000 Koninklijke (Royal) Philips Electronics NV........................................ $ 18,460,301
--------------
DIVERSIFIED FINANCIAL SERVICES
402,328 ING Groep NV...................................................................... 21,762,976
--------------
INTERNATIONAL BANKS
1,060,000 ABN-AMRO Holding NV............................................................... 23,593,748
--------------
PACKAGED FOODS
465,000 Unilever NV....................................................................... 22,908,846
--------------
SPECIALTY CHEMICALS
687,500 DSM NV............................................................................ 24,816,543
--------------
TELECOMMUNICATIONS
175,000 KPN NV............................................................................ 20,011,163
--------------
TOTAL NETHERLANDS................................................................. 152,913,472
--------------
PORTUGAL (0.6%)
TELECOMMUNICATIONS
1,500,000 Portugal Telecom S.A. (Registered Shares)......................................... 19,209,570
--------------
SPAIN (1.4%)
ELECTRIC UTILITIES
1,500,000 Iberdrola S.A..................................................................... 19,539,286
--------------
INTERNATIONAL BANKS
700,000 Banco Popular Espanol S.A......................................................... 21,407,680
--------------
TOTAL SPAIN....................................................................... 40,946,966
--------------
SWEDEN (1.5%)
CONSUMER ELECTRONICS/APPLIANCES
555,000 Electrolux AB (Series B).......................................................... 10,481,253
--------------
ENGINEERING & CONSTRUCTION
360,000 Skanska AB (B Shares)............................................................. 12,183,515
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL MACHINERY/COMPONENTS
450,000 Sandvik AB (B Shares)............................................................. $ 11,642,950
--------------
INTERNATIONAL BANKS
2,000,000 Nordbanken Holding AB............................................................. 10,626,502
--------------
TOTAL SWEDEN...................................................................... 44,934,220
--------------
SWITZERLAND (6.2%)
CONSUMER SPECIALTIES
12,000 Compagnie Financiere Richemont AG (Series A)...................................... 30,441,309
--------------
INTERNATIONAL BANKS
120,000 UBS AG (Registered Shares)........................................................ 31,486,040
--------------
MAJOR PHARMACEUTICALS
23,000 Novartis AG (Registered Shares)................................................... 31,403,182
--------------
OTHER TELECOMMUNICATIONS
76,000 Swisscom AG (Registered Shares)................................................... 29,113,179
--------------
PACKAGED FOODS
18,000 Nestle S.A. (Registered Shares)................................................... 32,206,545
--------------
PROPERTY - CASUALTY INSURERS
18,500 Schweizerische Rueckversicherungs-Gesellschaft (Registered Shares)................ 32,001,501
--------------
TOTAL SWITZERLAND................................................................. 186,651,756
--------------
UNITED KINGDOM (11.7%)
AEROSPACE
2,965,000 Rolls-Royce PLC................................................................... 9,601,201
--------------
AIRLINES
4,000,000 British Airways PLC............................................................... 20,998,376
--------------
ALCOHOLIC BEVERAGES
1,950,000 Bass PLC.......................................................................... 24,512,179
--------------
BUILDING MATERIALS
3,200,000 Hanson PLC........................................................................ 22,814,624
--------------
CLOTHING/SHOE/ACCESSORY STORES
2,500,000 Next PLC.......................................................................... 18,600,610
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 2000, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED FINANCIAL SERVICES
1,600,000 Abbey National PLC................................................................ $ 21,030,240
1,350,000 HSBC Holdings PLC................................................................. 15,776,699
--------------
36,806,939
--------------
ENVIRONMENTAL SERVICES
6,000,000 Cookson Group PLC................................................................. 17,373,846
--------------
INTERNATIONAL BANKS
1,500,000 Royal Bank of Scotland Group PLC.................................................. 22,057,854
--------------
MOVIES/ENTERTAINMENT
7,682,000 Rank Group PLC.................................................................... 18,358,444
--------------
NON - U.S. UTILITIES
3,850,000 National Power PLC................................................................ 19,275,529
3,150,000 PowerGen PLC...................................................................... 18,405,642
2,000,000 United Utilities PLC.............................................................. 20,870,920
--------------
58,552,091
--------------
PAPER
7,456,500 Arjo Wiggins Appleton PLC......................................................... 19,453,002
--------------
SPECIALTY STEELS
11,500,000 Corus Group PLC................................................................... 18,688,236
--------------
TOBACCO
4,500,000 British American Tobacco PLC...................................................... 24,752,353
--------------
WATER SUPPLY
4,505,000 Hyder PLC......................................................................... 15,915,809
1,350,000 Hyder PLC (Pref.)................................................................. 1,613,115
2,400,000 Severn Trent PLC.................................................................. 21,603,792
--------------
39,132,716
--------------
TOTAL UNITED KINGDOM.............................................................. 351,702,471
--------------
UNITED STATES (28.6%)
AEROSPACE
130,200 Northrop Grumman Corp............................................................. 6,892,462
--------------
ALUMINUM
420,000 Alcoa, Inc........................................................................ 29,505,000
--------------
AUTOMOTIVE AFTERMARKET
1,300,000 Goodyear Tire & Rubber Co......................................................... 30,306,250
--------------
COAL MINING
221,487 Arch Coal, Inc.................................................................... 1,550,411
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONSTRUCTION/AGRICULTURAL
EQUIPMENT/TRUCKS
775,000 Deere & Co........................................................................ $ 29,450,000
--------------
CONTAINERS/PACKAGING
966,900 Crown Cork & Seal Co., Inc........................................................ 15,470,400
--------------
DEPARTMENT STORES
1,050,000 Sears, Roebuck & Co............................................................... 32,418,750
--------------
DISCOUNT CHAINS
435,000 Target Corp....................................................................... 32,516,250
--------------
DIVERSIFIED FINANCIAL SERVICES
2,050,000 Conseco, Inc...................................................................... 23,446,875
--------------
DIVERSIFIED MANUFACTURING
315,000 Minnesota Mining & Manufacturing Co............................................... 27,897,187
--------------
ELECTRIC UTILITIES
660,000 FPL Group, Inc.................................................................... 30,401,250
1,095,700 GPU, Inc.......................................................................... 29,994,788
--------------
60,396,038
--------------
ELECTRONIC DATA PROCESSING
195,000 Hewlett-Packard Co................................................................ 25,849,688
250,000 International Business Machines Corp.............................................. 29,500,000
--------------
55,349,688
--------------
ENGINEERING & CONSTRUCTION
850,000 Fluor Corp........................................................................ 26,350,000
--------------
FINANCE COMPANIES
1,500,000 Associates First Capital Corp. (Class A).......................................... 32,156,250
--------------
FOOD CHAINS
1,050,000 Albertson's, Inc.................................................................. 32,550,000
--------------
INTEGRATED OIL COMPANIES
360,000 Chevron Corp...................................................................... 33,277,500
--------------
MAJOR BANKS
560,000 Bank of America Corp.............................................................. 29,365,000
1,650,000 KeyCorp........................................................................... 31,350,000
--------------
60,715,000
--------------
MAJOR CHEMICALS
265,000 Dow Chemical Co................................................................... 30,210,000
--------------
MAJOR PHARMACEUTICALS
550,000 Bristol-Myers Squibb Co........................................................... 31,762,500
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
PORTFOLIO OF INVESTMENTS MARCH 31, 2000, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MOTOR VEHICLES
675,000 Ford Motor Co..................................................................... $ 31,007,813
--------------
OFFICE EQUIPMENT/SUPPLIES
1,150,000 Xerox Corp........................................................................ 29,900,000
--------------
OIL REFINING/MARKETING
900,000 Ashland, Inc...................................................................... 30,093,750
--------------
OTHER METALS/MINERALS
550,000 Phelps Dodge Corp................................................................. 26,125,000
--------------
PAPER
775,000 International Paper Co............................................................ 33,131,250
--------------
PHOTOGRAPHIC PRODUCTS
500,000 Eastman Kodak Co.................................................................. 27,156,250
--------------
SAVINGS & LOAN ASSOCIATIONS
1,100,000 Washington Mutual, Inc............................................................ 29,150,000
--------------
SEMICONDUCTORS
220,000 Intel Corp........................................................................ 28,998,750
--------------
TOBACCO
1,500,000 Philip Morris Companies, Inc...................................................... 31,687,500
--------------
TOTAL UNITED STATES............................................................... 859,470,874
--------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $2,686,701,239).................................................. 2,852,058,299
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ---------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (2.6%)
U.S. GOVERNMENT AGENCY
$ 78,250 Federal Home Loan Mortgage Corp. 6.05% due 04/03/00 (AMORTIZED COST $78,223,699)..... 78,223,699
--------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $2,764,924,938) (b).................................................... 97.3% $ 2,930,281,998
OTHER ASSETS IN EXCESS OF LIABILITIES................................................... 2.7 82,580,401
----- ---------------
NET ASSETS.............................................................................. 100.0% $ 3,012,862,399
----- ---------------
----- ---------------
</TABLE>
- ---------------------
(a) 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 $538,705,247 and the
aggregate gross unealized depreciation is $373,348,187, resulting in net
unrealized appreciation of $165,357,060.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT MARCH 31, 2000:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- --------------------------------------------------------------------
<S> <C> <C> <C>
JPY 813,239,293 $ 7,706,238 04/03/2000 $ (210,811)
GBP 2,072,705 $ 3,288,346 04/03/2000 (13,887)
JPY 1,108,102,595 $ 10,766,640 04/04/2000 (20,963)
$ 2,167,598 EUR 2,264,046 04/04/2000 (3,849)
HKD 16,889,675 $ 2,169,069 04/05/2000 56
GBP 1,996,299 $ 3,180,105 04/06/2000 (399)
GBP 5,094,520 $ 8,113,023 04/07/2000 (3,566)
EUR 763,764 $ 731,304 04/28/2000 1,375
EUR 4,536,350 $ 4,347,411 04/28/2000 12,020
------------
Net unrealized depreciation................... $ (240,024)
============
</TABLE>
CURRENCY ABBREVIATIONS:
- ------------------------
<TABLE>
<S> <C>
GBP British Pound.
EUR Euro.
HKD Hong Kong Dollar.
JPY Japanese Yen.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
SUMMARY OF INVESTMENTS MARCH 31, 2000
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Aerospace....................................................................... $ 16,493,663 0.5%
Airlines........................................................................ 52,810,711 1.8
Alcoholic Beverages............................................................. 52,635,232 1.7
Aluminum........................................................................ 41,219,926 1.4
Apparel......................................................................... 44,248,910 1.5
Automotive Aftermarket.......................................................... 49,538,757 1.6
Building Materials.............................................................. 43,525,164 1.4
Canadian Oil & Gas.............................................................. 13,960,703 0.5
Clothing/Shoe/Accessory Stores.................................................. 18,600,610 0.6
Coal Mining..................................................................... 1,550,411 0.1
Construction/Agricultural Equipment/Trucks...................................... 29,450,000 1.0
Consumer Electronics/Appliances................................................. 68,726,970 2.3
Consumer Specialties............................................................ 30,441,309 1.0
Containers/Packaging............................................................ 25,009,467 0.8
Department Stores............................................................... 62,247,897 2.1
Discount Chains................................................................. 32,516,250 1.1
Diversified Electronic Products................................................. 124,433,811 4.1
Diversified Financial Services.................................................. 101,226,360 3.3
Diversified Manufacturing....................................................... 68,939,724 2.3
Electric Utilities.............................................................. 79,935,324 2.6
Electrical Products............................................................. 31,220,794 1.0
Electronic Components........................................................... 29,941,589 1.0
Electronic Data Processing...................................................... 55,349,688 1.8
Engineering & Construction...................................................... 38,533,515 1.3
Environmental Services.......................................................... 17,373,846 0.6
Farming/Seeds/Milling........................................................... 8,750,389 0.3
Finance Companies............................................................... 59,195,775 2.0
Food Chains..................................................................... 32,550,000 1.1
Home Building................................................................... 30,047,508 1.0
Industrial Machinery/Components................................................. 11,642,950 0.4
Integrated Oil Companies........................................................ 55,519,984 1.8
International Banks............................................................. 216,552,979 7.2
Major Banks..................................................................... 60,715,000 2.0
Major Chemicals................................................................. 76,219,309 2.5
Major Pharmaceuticals........................................................... 94,932,622 3.2
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Motor Vehicles.................................................................. $ 111,991,147 3.7%
Movies/Entertainment............................................................ 18,358,444 0.6
Multi-Line Insurance............................................................ 23,245,013 0.8
Multi-Sector Companies.......................................................... 109,150,963 3.6
Non-U.S. Utilities.............................................................. 58,552,092 1.9
Office Equipment/Supplies....................................................... 29,900,000 1.0
Oil & Gas Production............................................................ 10,544,810 0.3
Oil Refining/Marketing.......................................................... 54,024,478 1.8
Oil/Gas Transmission............................................................ 14,618,407 0.5
Other Metals/Minerals........................................................... 26,125,000 0.9
Other Pharmaceuticals........................................................... 28,948,598 1.0
Other Telecommunications........................................................ 29,113,179 1.0
Packaged Foods.................................................................. 55,115,390 1.8
Paper........................................................................... 52,584,252 1.7
Photographic Products........................................................... 27,156,250 0.9
Precious Metals................................................................. 10,573,980 0.4
Property - Casualty Insurers.................................................... 32,001,501 1.1
Real Estate..................................................................... 29,111,445 1.0
Recreational Products/Toys...................................................... 26,358,061 0.9
Savings & Loan Associations..................................................... 29,150,000 1.0
Semiconductors.................................................................. 28,998,750 1.0
Specialty Chemicals............................................................. 24,816,542 0.8
Specialty Steels................................................................ 18,688,236 0.6
Telecommunication Equipment..................................................... 19,722,781 0.7
Telecommunications.............................................................. 71,609,137 2.4
Tobacco......................................................................... 80,768,125 2.6
U.S. Government Agency.......................................................... 78,223,699 2.6
Utilities....................................................................... 15,641,855 0.5
Water Supply.................................................................... 39,132,716 1.3
-------------- -----
$2,930,281,998 97.3%
-------------- -----
-------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks................................................................... $2,828,368,514 93.9%
Preferred Stocks................................................................ 23,689,785 0.8
Short-Term Investment........................................................... 78,223,699 2.6
-------------- -----
$2,930,281,998 97.3%
-------------- -----
-------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $2,764,924,938).......................................................... $2,930,281,998
Cash........................................................................................ 257,487
Receivable for:
Investments sold........................................................................ 77,365,290
Dividends............................................................................... 9,916,073
Shares of beneficial interest sold...................................................... 5,426,006
Foreign withholding taxes reclaimed..................................................... 2,697,910
Prepaid expenses and other assets........................................................... 56,487
--------------
TOTAL ASSETS........................................................................... 3,026,001,251
--------------
LIABILITIES:
Unrealized depreciation on open forward foreign currency contracts.......................... 240,024
Payable for:
Shares of beneficial interest repurchased............................................... 6,042,869
Plan of distribution fee................................................................ 2,448,442
Investments purchased................................................................... 2,163,749
Investment management fee............................................................... 1,785,349
Accrued expenses and other payables......................................................... 458,419
--------------
TOTAL LIABILITIES...................................................................... 13,138,852
--------------
NET ASSETS............................................................................. $3,012,862,399
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................. $2,749,357,113
Net unrealized appreciation................................................................. 165,183,488
Accumulated undistributed net investment income............................................. 2,662,043
Accumulated undistributed net realized gain................................................. 95,659,755
--------------
NET ASSETS............................................................................. $3,012,862,399
==============
CLASS A SHARES:
Net Assets.................................................................................. $ 44,929,320
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 3,604,787
NET ASSET VALUE PER SHARE.............................................................. $12.46
==============
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)...................................... $13.15
==============
CLASS B SHARES:
Net Assets.................................................................................. $2,873,332,789
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 230,524,994
NET ASSET VALUE PER SHARE.............................................................. $12.46
==============
CLASS C SHARES:
Net Assets.................................................................................. $ 17,405,615
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 1,401,829
NET ASSET VALUE PER SHARE.............................................................. $12.42
==============
CLASS D SHARES:
Net Assets.................................................................................. $ 77,194,675
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)................................... 6,184,329
NET ASSET VALUE PER SHARE.............................................................. $12.48
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $6,506,901 foreign withholding tax)........................................ $ 91,571,748
Interest..................................................................................... 3,361,419
-------------
TOTAL INCOME............................................................................ 94,933,167
-------------
EXPENSES
Plan of distribution fee (Class A shares).................................................... 101,409
Plan of distribution fee (Class B shares).................................................... 29,658,381
Plan of distribution fee (Class C shares).................................................... 169,309
Investment management fee.................................................................... 24,596,273
Transfer agent fees and expenses............................................................. 4,337,004
Custodian fees............................................................................... 1,329,823
Shareholder reports and notices.............................................................. 331,231
Registration fees............................................................................ 128,140
Professional fees............................................................................ 109,564
Trustees' fees and expenses.................................................................. 26,811
Other........................................................................................ 90,797
-------------
TOTAL EXPENSES.......................................................................... 60,878,742
-------------
NET INVESTMENT INCOME................................................................... 34,054,425
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments.............................................................................. 415,913,417
Foreign exchange transactions............................................................ (106,001)
-------------
NET GAIN................................................................................ 415,807,416
-------------
Net change in unrealized appreciation/depreciation on:
Investments.............................................................................. (204,042,746)
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies...................................................... (31,402)
-------------
NET DEPRECIATION........................................................................ (204,074,148)
-------------
NET GAIN................................................................................ 211,733,268
-------------
NET INCREASE................................................................................. $ 245,787,693
=============
</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, 2000 MARCH 31, 1999
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................................... $ 34,054,425 $ 27,365,164
Net realized gain........................................................... 415,807,416 245,536,463
Net change in unrealized appreciation....................................... (204,074,148) (291,737,731)
-------------- --------------
NET INCREASE (DECREASE)................................................ 245,787,693 (18,836,104)
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.......................................................... (928,326) (261,174)
Class B shares.......................................................... (45,697,105) (18,635,895)
Class C shares.......................................................... (244,145) (56,045)
Class D shares.......................................................... (1,628,170) (571,271)
Net realized gain
Class A shares.......................................................... (4,957,870) (1,843,310)
Class B shares.......................................................... (368,305,589) (316,814,401)
Class C shares.......................................................... (1,935,417) (1,049,978)
Class D shares.......................................................... (7,932,181) (3,084,811)
-------------- --------------
TOTAL DIVIDENDS AND DISTRIBUTIONS...................................... (431,628,803) (342,316,885)
-------------- --------------
Net decrease from transactions in shares of beneficial interest............. (256,234,981) (38,312,266)
-------------- --------------
NET DECREASE........................................................... (442,076,091) (399,465,255)
NET ASSETS:
Beginning of period......................................................... 3,454,938,490 3,854,403,745
-------------- --------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $2,662,043 AND
$11,002,413, RESPECTIVELY).............................................. $3,012,862,399 $3,454,938,490
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Global Dividend Growth Securities (the "Fund") is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a diversified, open-end management investment company. The Fund's investment
objective is to provide reasonable current income and long-term growth of income
and capital. The Fund seeks to achieve its objective by investing primarily in
common stock of issuers worldwide, with a record of paying dividends and the
potential for increasing dividends. The Fund was organized as a Massachusetts
business trust on January 12, 1993 and commenced operations on June 30, 1993. On
July 28, 1997, the Fund converted to a multiple class share structure.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American, or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Trustees); (2) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (3) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager") that sale and bid prices are not reflective of a security's market
value, portfolio securities are valued at their fair value as determined in good
faith under procedures established by and under the general supervision of the
Trustees (valuation of debt securities for which market quotations are not
readily available may be based upon current market
16
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
prices of securities which are comparable in coupon, rating and maturity or an
appropriate matrix utilizing similar factors); and (4) short-term debt
securities having a maturity date of more than sixty days at time of purchase
are valued on a mark-to-market basis until sixty days prior to maturity and
thereafter at amortized cost based on their value on the 61st day. Short-term
debt securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends from foreign securities which are recorded as soon
as the Fund is informed after the ex-dividend date. Discounts are accreted over
the life of the respective securities. Interest income is accrued daily.
C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
D. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses
included in realized and unrealized gain/loss are included in or are a reduction
of ordinary income for federal income tax purposes. The Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the changes in the market prices of the securities.
E. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized gain/loss on
17
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
foreign exchange transactions. The Fund records realized gains or losses on
delivery of the currency or at the time the forward contract is extinguished
(compensated) by entering into a closing transaction prior to delivery.
F. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.75% to the portion of daily net assets not exceeding $1
billion; 0.725% to the portion of daily net assets exceeding $1 billion but not
exceeding $1.5 billion; 0.70% to the portion of daily net assets exceeding $1.5
billion but not exceeding $2.5 billion; 0.675% to the portion of daily net
assets exceeding $2.5 billion but not exceeding $3.5 billion; 0.65% to the
portion of daily net assets exceeding $3.5 billion but not exceeding $4.5
billion; and 0.625% to the portion of daily net assets in excess of $4.5
billion.
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
18
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
(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 B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the 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 totaled
$54,988,454 at March 31, 2000.
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, 2000, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.23% and
1.0%, respectively.
The Distributor has informed the Fund that for the year ended March 31, 2000, it
received contingent deferred sales charges from certain redemptions of the
Fund's Class A, Class B and Class C shares of $6,172, $3,704,422 and $5,963,
respectively and received $67,674 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.
19
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
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, 2000 aggregated
$1,387,020,687 and $2,147,667,730, respectively.
For the year ended March 31, 2000, the Fund incurred $41,514 in brokerage
commissions with Dean Witter Reynolds Inc. ("DWR") for portfolio transactions
executed on behalf of the Fund.
For the year ended March 31, 2000, the Fund incurred brokerage commissions of
$1,033,869 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, 2000, included in the Fund's receivable for investments sold
were unsettled trades with Morgan Stanley & Co., Inc. for $3,288,346.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At March 31, 2000, the Fund had
transfer agent fees and expenses payable of approximately $6,000.
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended March 31, 2000 included
in Trustees' fees and expenses in the Statement of Operations amounted to
$14,764. At March 31, 2000, the Fund had an accrued pension liability of $65,866
which is included in accrued expenses in the Statement of Assets and
Liabilities.
5. FEDERAL INCOME TAX STATUS
Foreign currency losses incurred after October 31 ("post-October losses") within
the taxable year are deemed to arise on the first business day of the Fund's
next taxable year. The Fund incurred and will elect to defer net foreign
currency losses of approximately $11,000 during fiscal 2000.
As of March 31, 2000, 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 and accumulated undistributed net investment income was credited
$6,102,951.
20
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
6. 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, 2000 MARCH 31, 1999
--------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ---------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 4,124,442 $ 54,870,198 2,445,885 $ 31,514,500
Reinvestment of dividends and distributions...................... 426,081 5,518,151 151,674 1,988,984
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... -- -- 60,400 813,198
Redeemed......................................................... (3,648,207) (47,923,994) (858,155) (11,314,041)
----------- ------------- ----------- ---------------
Net increase - Class A........................................... 902,316 12,464,355 1,799,804 23,002,641
----------- ------------- ----------- ---------------
CLASS B SHARES
Sold............................................................. 17,079,751 231,824,851 21,502,359 286,062,777
Reinvestment of dividends and distributions...................... 29,414,839 382,988,816 23,576,064 312,457,447
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... -- -- 21,617,480 291,123,803
Redeemed......................................................... (69,348,420) (907,049,946) (77,262,606) (1,000,267,017)
----------- ------------- ----------- ---------------
Net decrease - Class B........................................... (22,853,830) (292,236,279) (10,566,703) (110,622,991)
----------- ------------- ----------- ---------------
CLASS C SHARES
Sold............................................................. 606,768 8,206,945 580,330 7,763,468
Reinvestment of dividends and distributions...................... 161,933 2,091,513 78,973 1,043,840
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... -- -- 5,717 76,885
Redeemed......................................................... (404,616) (5,255,312) (300,803) (3,913,266)
----------- ------------- ----------- ---------------
Net increase - Class C........................................... 364,085 5,043,146 364,217 4,970,927
----------- ------------- ----------- ---------------
CLASS D SHARES
Sold............................................................. 3,357,181 45,082,025 1,733,498 22,835,792
Reinvestment of dividends and distributions...................... 724,675 9,401,482 275,791 3,602,567
Shares issued in connection with the acquisition of Dean Witter
World Wide Investment Trust..................................... -- -- 2,083,617 28,062,611
Shares issued in connection with the acquisition of Dean Witter
Retirement Series -- Global Equity Series....................... -- -- 1,324,733 15,658,117
Redeemed......................................................... (2,666,619) (35,989,710) (2,035,926) (25,821,930)
----------- ------------- ----------- ---------------
Net increase - Class D........................................... 1,415,237 18,493,797 3,381,713 44,337,157
----------- ------------- ----------- ---------------
Net decrease in Fund............................................. (20,172,192) $(256,234,981) (5,020,969) $ (38,312,266)
=========== ============= =========== ===============
</TABLE>
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.
21
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000, CONTINUED
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, 2000, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
8. FUND ACQUISITIONS
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.
22
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 13.20 $ 14.43 $ 14.91
------- ------- -------
Income (loss) from investment operations:
Net investment income.............................................. 0.22 0.17 0.09
Net realized and unrealized gain (loss)............................ 0.86 (0.04) 0.62
------- ------- -------
Total income from investment operations............................... 1.08 0.13 0.71
------- ------- -------
Less dividends and distributions from:
Net investment income.............................................. (0.29) (0.14) (0.16)
Net realized gain.................................................. (1.53) (1.22) (1.03)
------- ------- -------
Total dividends and distributions..................................... (1.82) (1.36) (1.19)
------- ------- -------
Net asset value, end of period........................................ $ 12.46 $ 13.20 $ 14.43
======= ======= =======
TOTAL RETURN+......................................................... 8.00% 1.10% 5.77%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.13%(3) 1.12%(3) 1.17%(2)
Net investment income................................................. 1.61%(3) 1.39%(3) 1.02%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $44,929 $35,673 $13,027
Portfolio turnover rate............................................... 41% 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
23
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL DIVIDEND GROWTH SECURITIES
FINANCIAL HIGHLIGHTS, CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MARCH 31
-------------------------------------------------------
2000++ 1999++ 1998*++ 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $13.19 $ 14.44 $ 13.30 $ 12.86 $ 11.41
------ ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income.................................... 0.13 0.10 0.11 0.12 0.13
Net realized and unrealized gain (loss).................. 0.86 (0.06) 2.79 1.44 1.96
------ ------- ------- ------- -------
Total income from investment operations..................... 0.99 0.04 2.90 1.56 2.09
------ ------- ------- ------- -------
Less dividends and distributions from:
Net investment income.................................... (0.19) (0.07) (0.12) (0.13) (0.15)
Net realized gain........................................ (1.53) (1.22) (1.64) (0.99) (0.49)
------ ------- ------- ------- -------
Total dividends and distributions........................... (1.72) (1.29) (1.76) (1.12) (0.64)
------ ------- ------- ------- -------
Net asset value, end of period.............................. $12.46 $ 13.19 $ 14.44 $ 13.30 $ 12.86
====== ======= ======= ======= =======
TOTAL RETURN+............................................... 7.30% 0.42% 23.41% 12.58% 18.77%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.79%(1) 1.78%(1) 1.71% 1.75% 1.85%
Net investment income....................................... 0.95%(1) 0.74%(1) 0.80% 0.93% 1.05%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions...................... $2,873 $3,343 $3,812 $3,038 $2,434
Portfolio turnover rate..................................... 41% 47% 51% 40% 40%
</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 FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 13.17 $ 14.42 $14.91
------- ------- ------
Income (loss) from investment operations:
Net investment income.............................................. 0.11 0.08 0.02
Net realized and unrealized gain (loss)............................ 0.87 (0.05) 0.62
------- ------- ------
Total income from investment operations............................... 0.98 0.03 0.64
------- ------- ------
Less dividends and distributions from:
Net investment income.............................................. (0.20) (0.06) (0.10)
Net realized gain.................................................. (1.53) (1.22) (1.03)
------- ------- ------
Total dividends and distributions..................................... (1.73) (1.28) (1.13)
------- ------- ------
Net asset value, end of period........................................ $ 12.42 $ 13.17 $14.42
======= ======= ======
TOTAL RETURN+......................................................... 7.22% 0.37% 5.26%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.90%(3) 1.85%(3) 1.92%(2)
Net investment income................................................. 0.84%(3) 0.66%(3) 0.24%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $17,406 $13,664 $9,711
Portfolio turnover rate............................................... 41% 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 FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 13.21 $ 14.44 $ 14.91
------- ------- -------
Income (loss) from investments operations:
Net investment income.............................................. 0.25 0.20 0.11
Net realized and unrealized gain (loss)............................ 0.86 (0.05) 0.62
------- ------- -------
Total income from investment operations............................... 1.11 0.15 0.73
------- ------- -------
Less dividends and distributions from:
Net investment income.............................................. (0.31) (0.16) (0.17)
Net realized gain.................................................. (1.53) (1.22) (1.03)
------- ------- -------
Total dividends and distributions..................................... (1.84) (1.38) (1.20)
------- ------- -------
Net asset value, end of period........................................ $ 12.48 $ 13.21 $ 14.44
======= ======= =======
TOTAL RETURN+......................................................... 8.28% 1.27% 5.97%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.90%(3) 0.90%(3) 0.92%(2)
Net investment income................................................. 1.84%(3) 1.61%(3) 1.21%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $77,195 $63,013 $20,032
Portfolio turnover rate............................................... 41% 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") at March 31, 2000, 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 accounting principles generally
accepted in the United States. 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 auditing standards
generally accepted in the United States, 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,
2000 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 12, 2000
2000 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended March 31, 2000, the Fund paid to its
shareholders $1.28 per share from long-term capital gains. For
such period, 45.47% 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 $0.11 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. Read the
prospectus carefully before investing.
Morgan Stanley Dean Witter Distributors Inc., member NASD.
MORGAN STANLEY
DEAN WITTER
GLOBAL DIVIDEND
GROWTH SECURITIES
[GRAPHIC]
ANNUAL REPORT
MARCH 31, 2000
