<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
The six-month period ended August 31, 1995, proved favorable for the global
utilities markets. Assisted by slowing but positive economies around the world,
non-U.S. utility stocks, telecommunications and electrics in particular,
rallied. International telecommunications continued to be a growth industry,
while the emerging markets improved from their lows posted at the beginning of
the reporting period. In the United States, telephone stocks performed well, but
lagged the overall stock market, which scaled new heights. U.S. electric utility
stock prices were relatively unchanged during the six-month period.
PERFORMANCE AND PORTFOLIO COMPOSITION
During the six-month period ended August 31, 1995, Dean Witter Global Utilities
Fund produced a total return of 11.79 percent, compared with a return of 12.41
percent for the broad-based Morgan Stanley Capital International World Index
(MSCI Index). The MSCI World Index incorporates stocks of all industries
including the utilities industry. During the reporting period, the Fund
continued to distribute quarterly income dividends of $0.04 per share.
On August 31, 1995, the Fund's equity holdings, which represented 84 percent of
the portfolio's total assets, were diversified among several sectors.
Telecommunications accounted for 63 percent of total equity holdings, electric
utilities represented 24 percent and gas/water and other utilities-related
companies accounted for 13 percent. The Fund's telecommunications holdings
included telephone operating, cellular, equipment and cable television
companies. The remaining 16 percent of the Fund's assets were invested in cash
equivalents.
Geographically, the Fund's equity holdings were spread among Europe (40
percent), United States (34 percent), Pacific (19 percent) and Latin
America/Canada (7 percent). Included among the Funds' largest holdings are Nokia
AB (Finland), AT&T Corp. (United States), Telecom Corp. of New Zealand Ltd. (New
Zealand) and Veba AG (Germany).
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
LETTER TO THE SHAREHOLDERS, CONTINUED
LOOKING AHEAD
We believe the global markets are in a coordinated period of economic growth, a
factor we consider positive for global utilities. Growth is proving to be
moderate with low inflation, a scenario which is particularly favorable for
utility stocks. The telecommunications sector continues to undergo a revolution
around the world, with innovation in services leading to increased volume usage.
Non-U.S. countries are attempting to close the gap with the United States in
usage of telecommunications, while electric utilities and water companies
outside the U.S. have a combination of reasonable valuations and good growth
rates. We believe the Fund is well positioned to capitalize on this worldwide
infrastructure development.
We appreciate your support of Dean Witter Global Utilities Fund and look forward
to continuing to serve your investment needs.
Very truly yours,
[LOGO]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (83.7%)
ARGENTINA (1.4%)
NATURAL GAS - DISTRIBUTION
105,000 Metrogas S.A. (ADR)............. $ 984,375
---------------
TELECOMMUNICATIONS
497,000 Telecom Argentina S.A........... 2,197,839
---------------
UTILITIES - ELECTRIC
499,000 Central Puerto S.A. (Class B)... 1,922,111
---------------
TOTAL ARGENTINA................. 5,104,325
---------------
AUSTRALIA (2.0%)
UTILITIES - ELECTRIC
2,120,660 Australian Gas Light Company
Ltd............................. 7,138,718
---------------
AUSTRIA (1.1%)
AIRPORT MANAGEMENT
71,000 Flughafen Wien AG............... 3,877,110
---------------
BRAZIL (0.4%)
UTILITIES - ELECTRIC
61,685,000 Companhia Energetica de Minas
Gerais (Pref.).................. 1,396,470
---------------
CANADA (0.5%)
NATURAL GAS
130,000 TransCanada Pipelines Ltd....... 1,790,767
---------------
CHILE (2.0%)
TELECOMMUNICATIONS
35,000 Compania Telecomunicacion Chile
(ADR)........................... 2,555,000
170,000 Empresas Telex-Chile S.A.
(ADR)........................... 2,040,000
---------------
4,595,000
---------------
UTILITIES - ELECTRIC
91,000 Enersis S.A. (ADR).............. 2,309,125
---------------
TOTAL CHILE..................... 6,904,125
---------------
CHINA (0.5%)
UTILITIES - ELECTRIC
214,000 Shandong Huaneng Power Co., Ltd.
(ADR)........................... 1,792,250
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
DENMARK (3.0%)
AIRPORT MANAGEMENT
47,000 Kobenhavns Lufthavne AS......... $ 3,426,137
---------------
TELECOMMUNICATIONS
135,500 Tele Danmark AS (B Shares)...... 7,116,547
---------------
TOTAL DENMARK................... 10,542,684
---------------
FINLAND (2.5%)
TELECOMMUNICATIONS
130,000 Nokia AB (Series K)............. 8,988,431
---------------
FRANCE (1.5%)
WATER
51,157 Compagnie Generale des Eaux..... 5,419,131
---------------
GERMANY (5.8%)
ELECTRICAL EQUIPMENT
10,500 Siemens AG...................... 5,353,812
---------------
MACHINERY - DIVERSIFIED
25,700 Mannesmann AG................... 8,116,896
---------------
UTILITIES - ELECTRIC
186,000 Veba AG......................... 7,119,896
---------------
TOTAL GERMANY................... 20,590,604
---------------
HONG KONG (2.2%)
TELECOMMUNICATIONS
6,000,000 ABC Communications Holdings
Ltd............................. 1,511,687
---------------
UTILITIES - ELECTRIC
1,430,000 Consolidated Electric Power Asia
Ltd............................. 2,946,949
950,000 Hong Kong Electric Holdings
Ltd............................. 3,295,670
---------------
6,242,619
---------------
TOTAL HONG KONG................. 7,754,306
---------------
INDONESIA (1.3%)
TELECOMMUNICATIONS
130,000 PT Indonesia Satellite Corp.
(ADR)........................... 4,566,250
---------------
ITALY (1.3%)
TELECOMMUNICATIONS
1,466,000 Telecom Italia Mobile SpA....... 2,155,670
1,466,000 Telecom Italia SpA.............. 2,353,363
---------------
TOTAL ITALY..................... 4,509,033
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
JAPAN (5.0%)
TELECOMMUNICATIONS
250 DDI Corp........................ $ 2,122,302
825 Nippon Telegraph & Telephone
Corp............................ 7,495,375
---------------
9,617,677
---------------
TELECOMMUNICATIONS EQUIPMENT
70,000 Kyocera Corp.................... 6,215,827
132,000 Sumitomo Electric............... 1,722,919
---------------
7,938,746
---------------
TOTAL JAPAN..................... 17,556,423
---------------
MALAYSIA (1.0%)
TELECOMMUNICATIONS
714,000 Technology Resource Industries
Berhad.......................... 1,832,237
260,000 Telekom Malaysia Berhad......... 1,824,379
---------------
TOTAL MALAYSIA.................. 3,656,616
---------------
MEXICO (1.5%)
TELECOMMUNICATIONS
124,000 Grupo Iusacell S.A. de C.V.
(Series L) (ADR)................ 1,689,500
112,000 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR)................ 3,668,000
---------------
TOTAL MEXICO.................... 5,357,500
---------------
NETHERLANDS (2.1%)
TELECOMMUNICATIONS
214,000 Koninklijke PTT Nederlanden..... 7,385,149
---------------
NEW ZEALAND (2.1%)
TELECOMMUNICATIONS
1,880,000 Telecom Corp. of New Zealand
Ltd............................. 7,480,576
---------------
NORWAY (0.3%)
TELECOMMUNICATIONS EQUIPMENT
36,000 Nera AS......................... 1,167,264
---------------
PHILIPPINES (0.7%)
TELECOMMUNICATIONS
36,500 Philippine Long Distance
Telephone Co. (ADR)............. 2,294,938
---------------
PORTUGAL (0.9%)
TELECOMMUNICATIONS
184,000 Portugal Telecom S.A............ 3,340,293
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
SOUTH KOREA (1.5%)
UTILITIES - ELECTRIC
230,000 Korea Electric Power Corp.
(ADR)........................... $ 5,261,250
---------------
SPAIN (4.0%)
TELECOMMUNICATIONS
485,000 Telefonica de Espana S.A........ 6,580,208
---------------
UTILITIES - ELECTRIC
144,600 Empresa Nacional de Electridad
S.A............................. 7,512,737
---------------
TOTAL SPAIN..................... 14,092,945
---------------
SWEDEN (1.7%)
ELECTRICAL EQUIPMENT
284,000 Ericsson (L.M.) Telephone Co. AB
(Series "B" Free)............... 6,071,703
---------------
SWITZERLAND (2.4%)
MULTI-INDUSTRY
8,035 BBC Brown Boveri AG............. 8,499,779
---------------
UNITED KINGDOM (6.9%)
NATURAL GAS
1,052,000 British Gas PLC................. 4,518,219
---------------
TELECOMMUNICATIONS
90,000 Nynex CableComms Group (ADR).... 1,620,000
1,270,000 Telewest Communications......... 3,052,159
1,977,073 Vodafone Group PLC.............. 8,123,447
---------------
12,795,606
---------------
UTILITIES - ELECTRIC
450,000 Powergen PLC.................... 4,081,691
240,240 Yorkshire Electricity........... 3,084,235
---------------
7,165,926
---------------
TOTAL UNITED KINGDOM............ 24,479,751
---------------
UNITED STATES (28.1%)
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
98,000 Motorola, Inc................... 7,325,500
---------------
NATURAL GAS
160,000 Enron Corp...................... 5,380,000
100,000 Tenneco Inc..................... 4,850,000
---------------
10,230,000
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
85,000 Ameritech Corp.................. $ 4,356,250
80,000 Bell Atlantic Corp.............. 4,780,000
80,000 BellSouth Corp.................. 5,500,000
175,000 GTE Corp........................ 6,409,375
120,000 NYNEX Corp...................... 5,400,000
135,000 SBC Communications, Inc......... 6,834,375
125,000 U.S. West, Inc.................. 5,437,500
---------------
38,717,500
---------------
TELECOMMUNICATIONS - LONG DISTANCE
120,000 AT&T Corp....................... 6,780,000
280,000 MCI Communications Corp......... 6,720,000
160,000 Sprint Corporation.............. 5,680,000
60,000 WorldCom, Inc................... 2,017,500
---------------
21,197,500
---------------
UTILITIES - ELECTRIC
205,000 CMS Energy Corp................. 5,048,125
110,000 Duke Power Company.............. 4,468,750
155,000 Pacific Gas & Electric
Company......................... 4,456,250
175,000 SCE Corp........................ 2,909,375
225,000 Southern Company................ 4,753,125
---------------
21,635,625
---------------
TOTAL UNITED STATES............. 99,106,125
---------------
TOTAL COMMON AND PREFERRED
STOCKS
(IDENTIFIED COST
$273,637,219)................... 296,124,516
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
IN THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (16.8%)
COMMERCIAL PAPER (a) (13.4%)
AUTOMOTIVE FINANCE
$ 11,500 Ford Motor Credit Co. 5.74% due
09/06/95........................ 11,490,832
---------------
INDUSTRIALS
10,000 General Electric Co.
5.73% due 09/25/95.............. 9,961,800
---------------
OFFICE EQUIPMENT
14,000 IBM Credit Corp.
5.75% due 09/18/95.............. 13,961,986
12,000 Xerox Credit Corp.
5.73% due 09/11/95.............. 11,980,900
---------------
25,942,886
---------------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $47,395,518).... 47,395,518
---------------
<CAPTION>
PRINCIPAL
AMOUNT
IN THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY (a) (3.3%)
$ 11,500 Federal Home Loan Banks 5.70%
due 09/01/95
(Amortized Cost $11,500,000).... $ 11,500,000
---------------
REPURCHASE AGREEMENT (0.1%)
236 The Bank of New York 5.8125% due
09/01/95 (dated 08/31/95;
proceeds $236,091;
collateralized by $291,614
Federal Mortgage Association
Corp. 6.337% due 08/25/23 valued
at $247,927) (Identified Cost
$236,053)....................... 236,053
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $59,131,571)... 59,131,571
---------------
TOTAL INVESTMENTS
(IDENTIFIED COST
$332,768,790) (B)........... 100.5% 355,256,087
LIABILITIES IN EXCESS OF
OTHER ASSETS................ (0.5) (1,741,916)
----- ------------
NET ASSETS.................. 100.0% $353,514,171
----- ------------
----- ------------
<FN>
- ---------------------
ADR American Depository Receipt.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $332,768,790; the
aggregate gross unrealized appreciation is $34,581,089 and the aggregate
gross unrealized depreciation is $12,093,792, resulting in net unrealized
appreciation $22,487,297.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT AUGUST 31, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION/
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- -------------------------------------------------------
<S> <C> <C> <C>
US$503,854 DKK 2,879,525 09/01/95 $1,947
US$506,099 NLG 838,489 09/01/95 3,241
US$340,211 MYR 848,317 09/06/95 (68)
US$401,536 MYR 1,003,680 09/08/95 902
US$354,697 MYR 886,600 09/08/95 796
------
Net unrealized appreciation..... $6,818
------
------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
SUMMARY OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
<S> <C> <C>
Airport Management...................... $ 7,303,247 2.1%
Automotive Finance...................... 11,490,832 3.3
Electrical Equipment.................... 11,425,515 3.2
Electronics -
Semiconductors/Components............. 7,325,500 2.1
Industrials............................. 9,961,800 2.8
Machinery - Diversified................. 8,116,896 2.3
Multi-Industry.......................... 8,499,779 2.4
Natural Gas............................. 16,538,986 4.7
Natural Gas - Distribution.............. 984,375 0.3
Office Equipment........................ 25,942,886 7.3
Repurchase Agreement.................... 236,053 0.1
Telecommunications...................... 130,710,850 37.0
Telecommunications - Equipment.......... 9,106,010 2.5
Telecommunications - Long Distance...... 21,197,500 6.0
U.S. Government Agency.................. 11,500,000 3.3
Utilities - Electric.................... 69,496,727 19.6
Water................................... 5,419,131 1.5
------------ -----
$355,256,087 100.5%
------------ -----
------------ -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------
<S> <C> <C>
Common Stocks........................... $294,728,046 83.3%
Preferred Stock......................... 1,396,470 0.4
Short-Term Investments.................. 59,131,571 16.8
------------ -----
$355,256,087 100.5%
------------ -----
------------ -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $332,768,790)............................ $355,256,087
Receivable for:
Dividends............................................... 470,057
Shares of beneficial interest sold...................... 358,915
Foreign withholding taxes reclaimed..................... 150,537
Deferred organizational expenses............................ 134,418
Prepaid expenses and other assets........................... 44,894
------------
TOTAL ASSETS........................................... 356,414,908
------------
LIABILITIES:
Payable for:
Investments purchased................................... 2,114,215
Plan of distribution fee................................ 281,495
Shares of beneficial interest repurchased............... 237,669
Investment management fee............................... 195,091
Accrued expenses and other payables......................... 72,267
------------
TOTAL LIABILITIES...................................... 2,900,737
------------
NET ASSETS:
Paid-in-capital............................................. 326,577,865
Net unrealized appreciation................................. 22,478,763
Accumulated undistributed net investment income............. 1,598,876
Accumulated undistributed net realized gain................. 2,858,667
------------
NET ASSETS............................................. $353,514,171
------------
------------
NET ASSET VALUE PER SHARE,
32,526,887 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$10.87
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $454,196 foreign withholding tax)......... $ 4,447,106
Interest.................................................... 2,787,364
-----------
TOTAL INCOME........................................... 7,234,470
-----------
EXPENSES
Plan of distribution fee.................................... 1,691,888
Investment management fee................................... 1,130,878
Transfer agent fees and expenses............................ 271,216
Custodian fees.............................................. 57,408
Professional fees........................................... 45,791
Shareholder reports and notices............................. 41,323
Registration fees........................................... 27,917
Organizational expenses..................................... 17,180
Trustees' fees and expenses................................. 10,958
Other....................................................... 3,137
-----------
TOTAL EXPENSES......................................... 3,297,696
-----------
NET INVESTMENT INCOME.................................. 3,936,774
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. 2,897,330
Foreign exchange transactions........................... (4,951)
-----------
TOTAL GAIN............................................. 2,892,379
-----------
Net change in unrealized appreciation/depreciation on:
Investments............................................. 31,428,992
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ (10,822)
-----------
TOTAL APPRECIATION..................................... 31,418,170
-----------
NET GAIN............................................... 34,310,549
-----------
NET INCREASE................................................ $38,247,323
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE PERIOD
AUGUST 31, 1995 MAY 31, 1994* THROUGH
(UNAUDITED) FEBRUARY 28, 1995
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE)IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 3,936,774 $ 4,091,207
Net realized gain (loss).................................... 2,892,379 (15,376)
Net change in unrealized
appreciation/depreciation................................. 31,418,170 (8,939,407)
------------------ ---------------------
NET INCREASE (DECREASE)................................ 38,247,323 (4,863,576)
------------------ ---------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................................... (2,671,586) (3,774,471)
Net realized gain........................................... (1,384) --
------------------ ---------------------
TOTAL.................................................. (2,672,970) (3,774,471)
------------------ ---------------------
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (19,659,926) 346,137,791
------------------ ---------------------
TOTAL INCREASE......................................... 15,914,427 337,499,744
NET ASSETS:
Beginning of period......................................... 337,599,744 100,000
------------------ ---------------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$1,598,876 AND $333,688, RESPECTIVELY).................. $353,514,171 $337,599,744
------------------ ---------------------
------------------ ---------------------
</TABLE>
- ---------------------
* Commencement of operations.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Global Utilities Fund (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 was organized as a
Massachusetts business trust on October 22, 1993 and commenced operations on May
31, 1994. On February 24, 1994, the Fund issued 10,000 shares of beneficial
interest for $100,000 to Dean Witter InterCapital Inc. (the "Investment
Manager") to effect the Fund's initial capitalization.
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 Stock Exchange or other domestic or foreign stock exchanges
is valued at its latest sale price on that exchange prior to the time when
assets are valued; if there were no sales that day, the security is valued at
the latest bid price (in cases where securities are traded on more than one
exchange; the securities are valued on the exchange designated as the primary
market by the Trustees); (2) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (3) when market
quotations are not readily available, including circumstances under which it is
determined by the Investment Manager that sale or 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; (4) certain of the Fund's portfolio
securities may be valued by an outside pricing service approved by the Trustees.
The pricing service utilizes a matrix system incorporating security quality,
maturity and coupon as the evaluation model parameters, and/or research and
evaluations by its staff, including review of broker-dealer market price
quotations, if available, in determining what it believes is the fair valuation
of the securities valued by such pricing service; and (5) 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 is recorded on the ex-dividend date except with respect for
certain dividends on foreign securities which are recorded as soon as the Fund
is informed after the ex-dividend date. Interest income is accrued daily and
includes accretion of discounts on certain short-term securities.
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward contracts are
translated at the exchange rates prevailing at the end of the period; and (2)
purchases, sales, income and expenses are translated at the exchange rates
prevailing on the respective dates of such transactions. The resultant exchange
gains and losses are included in the Statement of Operations as realized and
unrealized gain/loss on foreign exchange transactions. Pursuant to U.S. Federal
income tax regulations, certain foreign exchange gains/losses included in
realized and unrealized gain/loss are included in or are a reduction of ordinary
income for federal income tax purposes. The Fund does not isolate that portion
of the results of operations arising as a result of changes in the foreign
exchange rates from the changes in the market prices of the securities.
D. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized foreign currency gain or loss and in the Statement of
Assets and Liabilities as part of the related foreign currency denominated asset
or liability. The Fund records realized gains or losses on delivery of the
currency or at the time the forward contract is extinguished (compensated) by
entering into a closing transaction prior to delivery.
E. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the ex-dividend 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.
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
G. ORGANIZATIONAL EXPENSES -- The Investment Manager paid the organizational
expenses of the Fund in the amount of approximately $175,000 which have been
reimbursed for the full amount thereof. Such expenses have been deferred and are
being amortized by the Fund on the straight line method over a period not to
exceed five years from the commencement of operations.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
annual rate of 0.65% to the net assets of the Fund determined as of the close of
each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager. The Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act pursuant
to which the Fund pays the Distributor compensation, accrued daily and payable
monthly, at an annual rate of 1.0% of the lesser of: (a) the average daily
aggregate gross sales of the Fund's shares since the inception of the Fund (not
including reinvestment of dividend or capital gain distributions) less the
average daily aggregate net asset value of the Fund's shares redeemed since the
Fund's inception upon which a contingent deferred sales charge has been imposed
or upon which such charge has been waived; or (b) the Fund's average daily net
assets. Amounts paid under the Plan are paid to the Distributor to compensate it
for the services provided and the expenses borne by it and others in the
distribution of the Fund's shares, including the payment of commissions for
sales of the Fund's shares and incentive compensation to, and expenses of, the
account executives of Dean Witter Reynolds Inc. ("DWR"), an affiliate of the
Investment Manager and Distributor, and other employees or selected dealers who
engage in or support distribution of the Fund's shares or who service
shareholder accounts, including overhead and telephone expenses, printing and
distribution of prospectuses and reports used in connection with the offering of
the Fund's shares to other than current shareholders and preparation, printing
and distribution of sales literature and advertising materials. In addition, the
Distributor may be
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
compensated under the Plan for its opportunity costs in advancing such amounts,
which compensation would be in the form of a carrying charge on any unreimbursed
expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered, may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.
The Distributor has informed the Fund that for the six months ended August 31,
1995, it received approximately $624,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares. The Fund's shareholders pay such
charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended August 31, 1995 aggregated
$71,033,578 and $12,466,133, respectively.
For the six months ended August 31, 1995, the Fund incurred brokerage
commissions of $18,250 with DWR for portfolio transactions executed on behalf of
the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At August 31, 1995, the Fund had
transfer agent fees and expenses payable of approximately $51,000.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD MAY 31,
FOR THE SIX MONTHS ENDED 1994* THROUGH FEBRUARY 28,
AUGUST 31, 1995 1995
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 2,082,534 $ 21,773,730 37,349,295 $375,264,971
Reinvestment of dividends and distributions...................... 234,513 2,392,045 340,265 3,390,729
----------- -------------- ----------- ------------
2,317,047 24,165,775 37,689,560 378,655,700
Repurchased...................................................... (4,238,494) (43,825,701) (3,251,226) (32,517,909)
----------- -------------- ----------- ------------
Net increase (decrease).......................................... (1,921,447) $ (19,659,926) 34,438,334 $346,137,791
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
<FN>
- ---------------------
* Commencement of operations.
</TABLE>
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 (UNAUDITED) CONTINUED
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.
At August 31, 1995, there were no outstanding forward contracts other than those
used to facilitate settlement of foreign currency denominated portfolio
transactions.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
<PAGE>
DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE PERIOD
MONTHS ENDED MAY 31, 1994*
AUGUST 31, 1995 THROUGH FEBRUARY
(UNAUDITED) 28, 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 9.80 $ 10.00
------ ------
Net investment income................................................. 0.12 0.13
Net realized and unrealized gain (loss)............................... 1.03 (0.21)
------ ------
Total from investment operations...................................... 1.15 (0.08)
------ ------
Less dividends to shareholders from net investment income............. (0.08) (0.12)
------ ------
Net asset value, end of period........................................ $ 10.87 $ 9.80
------ ------
------ ------
TOTAL INVESTMENT RETURN+.............................................. 11.79%(1) (0.87)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.92%(2) 1.97% (2)
Net investment income................................................. 2.29%(2) 1.83% (2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $353,514 $337,600
Portfolio turnover rate............................................... 5%(1) 2% (1)
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES DEAN WITTER
GLOBAL UTILITIES
Jack F. Bennett FUND
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Edward F. Gaylor
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they do
not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
[GRAPHIC]
SEMIANNUAL REPORT
AUGUST 31, 1995
