<PAGE> 1
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND Two World Trade Center
LETTER TO THE SHAREHOLDERS August 31, 1998 New York, New York 10048
DEAR SHAREHOLDER:
During the six-month period ended August 31, 1998, global utilities stocks
turned in a mixed performance. The early part of the period continued the very
positive trends that were prevalent during the previous months. Global
telecommunications stocks continued to rise, reflecting strong industry growth
and a continuation in mergers and acquisitions. European utilities, along with
other European stocks, rose strongly due primarily to lower local interest rates
and other anticipated benefits arising from the implementation of the common
currency, the euro. Emerging markets also rallied in the spring on hopes of
those markets' problems ending.
These positive trends, however, moderated as the period continued. European
utilities remained in a holding pattern following earlier advances, while
emerging market stocks declined sharply reflecting continued concern about
Asia's economies.
As the period came to a close, U.S. stocks declined as global concerns finally
affected the U.S. market. Despite this decline, more defensively oriented
utilities outperformed the broad market. The worsening economic problems in
Russia also had a negative effect on stock markets, particularly those in Europe
because of their geographic proximity.
PERFORMANCE
Concern about the emerging-Asia and Russian economic difficulties spreading to
Latin America and elsewhere resulted in the global stock markets, as measured by
the Morgan Stanley Capital International World Index (excluding dividends),
declining 8.03 percent, while utilities funds, as measured by the Lipper
Utilities Funds Index, declined 2.55 percent.
Despite this difficult investment climate, Morgan Stanley Dean Witter Global
Utilities Fund Class B shares posted a positive return of 5.65 percent for the
six-month period ended August 31, 1998. For the same period, the Fund's Class A,
C and D shares had total returns of
<PAGE> 2
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
LETTER TO THE SHAREHOLDERS August 31, 1998, continued
5.96 percent, 5.56 percent and 6.12 percent, respectively. PERFORMANCE OF THE
FUND'S FOUR CLASSES VARIES BECAUSE OF DIFFERING EXPENSES.
The Fund benefited from the defensive nature of many utilities, which
outperformed their local stock markets throughout the period. In addition, the
Fund's overweighting in telecommunications and European utilities enabled the
Fund to outperform its benchmark indexes for the six months. On August 31, 1998,
telecommunications represented 64 percent of the Fund's assets, while European
utilities, including telecommunications companies, represented 41 percent of
assets.
PORTFOLIO STRATEGY
Since the beginning of the emerging market weakness last year, the Fund has
sharply reduced its exposure to this region, favoring instead the more
established markets of the United States and Europe. At the end of August, 51
percent of the Fund's equity portfolio was invested in U.S. stocks, with the
remaining 49 percent in foreign securities.
As market conditions deteriorated during the last six weeks of the period, the
Fund's cash position was increased to approximately 20 percent of assets. We
believe that this defensive measure should better protect the Fund in the
current market environment. Going forward, the portfolio's cash position will be
modified as market conditions warrant.
Several stocks were added to the Fund during the period. In the United States,
new companies included General Motors Class H, a satellite company, Texas
Utilities and Qwest Communications. In Europe, the Fund purchased shares of
Energis, Independent Energy and Scottish Hydro in the United Kingdom, Deutsche
Telekom and Viag in Germany, and Suez Lyonnaise des Eaux in France.
LOOKING AHEAD
As the Fund enters the second half of its fiscal year, there remains a great
deal of concern regarding the impact of the ongoing economic difficulties in
Russia and other emerging markets on the world's stock markets. While global
utilities stocks are likely to be affected by continued stock market volatility,
these stocks offer a number of potential advantages relative to other global
stocks. The telecommunications sector, which represents the Fund's largest
holding, features dependable growth characteristics as the world continues to
improve its telecommunications infrastructure, while electric utilities, due to
their defensive characteristics, tend to outperform the broad markets during
periods of economic uncertainty.
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
LETTER TO THE SHAREHOLDERS August 31, 1998, continued
As always, we will continue to closely monitor the world's stock markets and
will remain sensitive to any factors that would necessitate changes to the
Fund's portfolio holdings.
We appreciate your ongoing support of Morgan Stanley Dean Witter Global
Utilities Fund and look forward to continuing to serve your investment needs.
Very truly yours,
/S/ CHARLES A. FIUMEFREDDO
CHARLES A. FIUMEFREDDO
Chairman of the Board
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS August 31, 1998 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (75.5%)
AUSTRALIA (1.0%)
Natural Gas
768,000 Australian Gas Light
Company Ltd. ............... $ 4,339,532
-----------
CANADA (2.6%)
Natural Gas
112,000 TransCanada Pipelines
Ltd. ....................... 1,520,944
-----------
Telecommunication Equipment
94,000 Northern Telecom Ltd. ....... 4,509,723
-----------
Telecommunications
125,000 Metronet Communications Corp.
(Class B) (ADR)*............ 2,203,125
135,000 Telus Corp. ................. 2,668,154
-----------
4,871,279
-----------
TOTAL CANADA................. 10,901,946
-----------
CHILE (0.9%)
Telecommunications
122,000 Compania de
Telecommunicaciones de Chile
S.A. (ADR).................. 1,868,125
-----------
Utilities - Electric
112,000 Enersis S.A. (ADR)........... 2,030,000
-----------
TOTAL CHILE.................. 3,898,125
-----------
DENMARK (1.7%)
Telecommunications
61,500 Tele Danmark AS (B Shares)... 6,543,237
-----------
Transportation
6,000 Kobenhavns Lufthavne AS...... 672,435
-----------
TOTAL DENMARK................ 7,215,672
-----------
FINLAND (1.5%)
Telecommunication Equipment
89,000 Nokia AB (Series K).......... 6,425,272
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
FRANCE (3.1%)
Telecommunications
43,000 France Telecom S.A. (ADR).... $ 3,058,375
-----------
Water Supply
22,000 Suez Lyonnaise des Eaux...... 3,627,173
32,000 Vivendi...................... 6,394,030
-----------
10,021,203
-----------
TOTAL FRANCE................. 13,079,578
-----------
GERMANY (4.6%)
Cellular Telephone
69,000 Mannesmann AG................ 6,244,166
-----------
Electrical Products
46,000 Siemens AG................... 2,997,723
-----------
Telecommunications
75,000 Deutsche Telekom AG*......... 1,993,455
-----------
Utilities - Electric
91,000 VEBA AG...................... 4,603,347
5,600 Viag AG...................... 3,521,912
-----------
8,125,259
-----------
TOTAL GERMANY................ 19,360,603
-----------
ITALY (2.1%)
Cellular Telephone
580,000 Telecom Italia Mobile SpA.... 3,823,221
-----------
Telecommunications
644,000 Telecom Italia SpA........... 4,994,664
-----------
TOTAL ITALY.................. 8,817,885
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS August 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
MEXICO (0.7%)
Cellular Telephone
62,200 Grupo Iusacell S.A. de C.V.
(Series L) (ADR)*........... $ 435,400
-----------
Telecommunications
65,000 Telefonos de Mexico S.A. de
C.V. (Class L) (ADR)........ 2,319,687
-----------
TOTAL MEXICO................. 2,755,087
-----------
NETHERLANDS (2.9%)
Air Freight/Delivery Services
190,300 TNT Post Group NV............ 4,010,760
-----------
Telecommunications
177,300 Koninklijke KPN NV........... 8,036,742
-----------
TOTAL NETHERLANDS............ 12,047,502
-----------
NEW ZEALAND (0.7%)
Telecommunications
810,000 Telecom Corporation of New
Zealand Ltd. ............... 3,120,460
-----------
PORTUGAL (1.8%)
Cellular Telephone
25,000 Telecel-Comunicacoes
Pessoais S.A. .............. 4,093,950
-----------
Telecommunications
77,000 Portugal Telecom S.A. ....... 3,526,228
-----------
TOTAL PORTUGAL............... 7,620,178
-----------
SPAIN (3.7%)
Telecommunications
140,000 Telefonica de Espana......... 5,373,794
-----------
Utilities - Electric
330,000 Empresa Nacional de
Electricidad S.A............ 6,289,188
269,000 Iberdrola S.A. .............. 3,973,372
-----------
10,262,560
-----------
TOTAL SPAIN.................. 15,636,354
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
SWEDEN (1.3%)
Telecommunication Equipment
240,000 Ericsson (L.M.) Telephone Co.
AB (Series "B" Free)........ $ 5,529,059
-----------
SWITZERLAND (0.7%)
Electrical Products
2,400 ABB AG - Bearer.............. 2,804,438
-----------
UNITED KINGDOM (7.6%)
Cable Television
286,000 Cable & Wireless
Communications PLC*......... 2,527,608
726,718 Telewest Communications
PLC*........................ 1,913,369
-----------
4,440,977
-----------
Cellular Telephone
379,000 Orange PLC*.................. 4,512,639
537,000 Vodafone Group PLC........... 7,501,573
-----------
12,014,212
-----------
Telecommunications
29,000 COLT Telecom Group PLC
(ADR)*...................... 4,089,000
140,000 Energis PLC*................. 1,951,609
-----------
6,040,609
-----------
Utilities - Electric
300,000 Independent Energy Holdings
PLC (ADR)*.................. 1,668,750
154,500 National Grid Group PLC...... 1,114,115
228,000 Scottish Hydro-Electric
PLC......................... 2,108,693
300,000 United Utilities PLC......... 4,427,280
-----------
9,318,838
-----------
TOTAL UNITED KINGDOM......... 31,814,636
-----------
UNITED STATES (38.6%)
Cable Television
99,000 MediaOne Group Inc.*......... 4,059,000
-----------
Natural Gas
200,000 ENRON Corp. ................. 8,462,500
-----------
Satellite
107,000 General Motors Corp. (Class
H).......................... 3,865,375
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS August 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
Telecommunication Equipment
100,000 Lucent Technologies, Inc. ... $ 7,087,500
50,000 Tellabs, Inc.*............... 2,112,500
------------
9,200,000
------------
Telecommunications
39,220 ALLTEL Corp. ................ 1,769,802
150,000 Ameritech Corp. ............. 7,068,750
157,150 AT&T Corp. .................. 7,877,144
187,000 Bell Atlantic Corp. ......... 8,251,375
180,000 BellSouth Corp. ............. 12,341,250
125,000 Cincinnati Bell, Inc. ....... 2,937,500
147,000 GTE Corp. ................... 7,350,000
102,000 MCI Communications Corp. .... 5,100,000
159,000 Qwest Communications
International, Inc.*........ 3,965,063
236,000 SBC Communications, Inc. .... 8,968,000
160,000 Sprint Corp. ................ 10,730,000
118,277 U.S. West, Inc. ............. 6,150,404
131,000 WorldCom, Inc.*.............. 5,354,625
------------
87,863,913
------------
Unregulated Power Generation
148,000 AES Corp.*................... 4,033,000
------------
Utilities - Electric
220,000 CMS Energy Corp. ............ 9,308,750
140,000 Duke Energy Corp. ........... 8,732,500
230,000 Edison International......... 6,540,625
170,000 Houston Industries, Inc. .... 4,898,125
120,000 PG & E Corp. ................ 3,855,000
280,000 Southern Co. ................ 7,875,000
100,000 Texas Utilities Co. ......... 4,250,000
------------
45,460,000
------------
TOTAL UNITED STATES.......... 162,943,788
------------
TOTAL COMMON STOCKS
(Identified Cost
$203,199,999)................ 318,310,115
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ---------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (20.1%)
U.S. GOVERNMENT AGENCIES (a) (20.0%)
Federal Home Loan Mortgage Corp.
$ 24,000 5.49% due 09/16/98.......... $23,945,100
4,600 5.70% due 09/01/98.......... 4,600,000
56,000 Federal National Mortgage Assoc.
5.47% due 09/14/98.......... 55,889,384
------------
TOTAL U.S. GOVERNMENT
AGENCIES
(Amortized Cost
$84,434,484)................. 84,434,484
------------
REPURCHASE AGREEMENT (0.1%)
151 The Bank of New York 5.75%
due 09/01/98 (dated
08/31/98; proceeds $151,345)
(b)
(Identified Cost
$151,321)................... 151,321
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost
$84,585,805)................. 84,585,805
------------
TOTAL INVESTMENTS
(Identified Cost $287,785,804) (c)..95.6% 402,895,920
OTHER ASSETS IN EXCESS OF
LIABILITIES...................... 4.4 18,756,354
---- ------------
NET ASSETS....................... 100.0% $421,652,274
====== ============
</TABLE>
- ---------------------
<TABLE>
<S> <C>
ADR American Depository Receipt.
* Non-income producing security.
(a) Securities were purchased on a discount basis.
The interest rates shown have been adjusted to
reflect a money market equivalent yield.
(b) Collateralized by $118,063 U.S. Treasury Bond
7.875% due 02/15/21 valued at $154,347.
(c) The aggregate cost for federal income tax
purposes approximates identified cost. The
aggregate gross unrealized appreciation is
$124,707,235 and the aggregate gross unrealized
depreciation is $9,597,119, resulting in net
unrealized appreciation of $115,110,116.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS August 31, 1998 (unaudited) continued
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT AUGUST 31, 1998:
<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS TO EXCHANGE DELIVERY APPRECIATION/
DELIVER FOR DATE DEPRECIATION
- --------------------------------------------------------
<S> <C> <C> <C>
CAD 1,485,621 $ 943,251 09/01/98 $ (3,909)
CAD 1,473,662 $ 935,658 09/01/98 (3,877)
CAD 1,520,099 $ 965,142 09/01/98 (4,000)
ATS 24,142,704 $ 1,948,564 09/02/98 (2,914)
ESP 145,722,018 $ 973,557 09/02/98 (2,608)
ESP 276,439,985 $ 1,846,873 09/02/98 (4,949)
ESP 139,657,766 $ 933,042 09/02/98 (2,500)
DEM 1,726,804 $ 980,581 09/02/98 (2,232)
DEM 1,675,708 $ 951,566 09/02/98 (2,166)
PTE 157,704,646 $ 873,226 09/02/98 (2,181)
DKK 7,067,728 $ 1,053,784 09/02/98 (2,346)
DKK 2,617,125 $ 389,517 09/03/98 (1,560)
AUD 1,715,094 $ 980,005 09/04/98 3,087
ITL 1,629,494,208 $ 935,362 09/04/98 (3,557)
ITL 1,630,652,271 $ 936,027 09/04/98 (3,560)
NZD 1,962,221 $ 971,299 09/04/98 2,158
GBP 571,576 $ 956,532 09/08/98 (2,001)
GBP 832,556 $ 1,393,283 09/08/98 (2,914)
--------
Net unrealized depreciation............. $(42,029)
========
</TABLE>
<TABLE>
<CAPTION>
Currency Abbreviations:
- ----------------------------------------------------
<S> <C>
AUD Australian Dollar.
ATS Austrian Schilling.
GBP British Pound.
CAD Canadian Dollar.
DKK Danish Krone.
DEM German Deutschemark.
ITL Italian Lira.
NZD New Zealand Dollar.
PTE Portuguese Escudo.
ESP Spanish Peseta.
</TABLE>
SUMMARY OF INVESTMENTS:
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------
<S> <C> <C>
Air Freight/Delivery
Services.................. $ 4,010,760 0.9%
Cable Television........... 8,499,977 2.0
Cellular Telephone......... 26,610,949 6.3
Electrical Products........ 5,802,161 1.4
Natural Gas................ 14,322,976 3.4
Repurchase Agreement....... 151,321 0.1
Satellite.................. 3,865,375 0.9
Telecommunication
Equipment................. 25,664,054 6.1
Telecommunications......... 139,610,568 33.1
Transportation............. 672,435 0.2
U.S. Government Agencies... 84,434,484 20.0
Unregulated Power
Generation................ 4,033,000 1.0
Utilities - Electric....... 75,196,657 17.8
Water Supply............... 10,021,203 2.4
------------ ----
$402,895,920 95.6%
============ ====
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------
<S> <C> <C>
Common Stocks.............. $318,310,115 75.5%
Short-Term Investments..... 84,585,805 20.1
------------ ----
$402,895,920 95.6%
============ ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1998 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $287,785,804).......... $402,895,920
Receivable for:
Investments sold..................... 19,050,524
Shares of beneficial interest sold... 703,376
Dividends............................ 447,288
Foreign withholding taxes
reclaimed........................... 272,037
Deferred organizational expenses......... 28,857
Prepaid expenses and other assets........ 60,422
------------
TOTAL ASSETS......................... 423,458,424
------------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased......................... 1,149,388
Plan of distribution fee............. 328,635
Investment management fee............ 247,688
Accrued expenses and other payables...... 80,439
------------
TOTAL LIABILITIES.................... 1,806,150
------------
NET ASSETS........................... $421,652,274
============
COMPOSITION OF NET ASSETS:
Paid-in-capital.......................... $254,922,649
Net unrealized appreciation.............. 115,114,014
Accumulated undistributed net investment
income.................................. 1,101,559
Accumulated undistributed net realized
gain.................................... 50,514,052
------------
NET ASSETS........................... $421,652,274
============
CLASS A SHARES:
Net Assets............................... $2,199,073
Shares Outstanding (unlimited authorized,
$.01 par value)......................... 138,101
NET ASSET VALUE PER SHARE............ $15.92
======
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net
asset value)........................ $16.80
======
CLASS B SHARES:
Net Assets............................... $418,496,323
Shares Outstanding (unlimited authorized,
$.01 par value)......................... 26,295,729
NET ASSET VALUE PER SHARE............ $15.91
======
CLASS C SHARES:
Net Assets............................... $921,801
Shares Outstanding (unlimited authorized,
$.01 par value)......................... 58,090
NET ASSET VALUE PER SHARE............ $15.87
======
CLASS D SHARES:
Net Assets............................... $35,077
Shares Outstanding (unlimited authorized,
$.01 par value)......................... 2,201
NET ASSET VALUE PER SHARE............ $15.94
======
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended August 31, 1998 (unaudited)
NET INVESTMENT INCOME:
INCOME
Dividends (net of $424,596 foreign
withholding tax)........................ $ 4,431,745
Interest................................. 1,043,473
------------
TOTAL INCOME......................... 5,475,218
------------
EXPENSES
Plan of distribution fee (Class A
shares)................................. 2,264
Plan of distribution fee (Class B
shares)................................. 1,808,896
Plan of distribution fee (Class C
shares)................................. 2,710
Investment management fee................ 1,447,681
Transfer agent fees and expenses......... 240,719
Custodian fees........................... 64,013
Registration fees........................ 46,361
Shareholder reports and notices.......... 44,123
Professional fees........................ 33,582
Organizational expenses.................. 17,149
Trustees' fees and expenses.............. 6,718
Other.................................... 5,904
------------
TOTAL EXPENSES....................... 3,720,120
------------
NET INVESTMENT INCOME................ 1,755,098
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments.......................... 58,983,785
Foreign exchange transactions........ (14,301)
------------
NET GAIN............................. 58,969,484
------------
Net change in unrealized
appreciation/depreciation on:
Investments.......................... (38,930,606)
Translation of forward foreign
currency contracts, other assets and
liabilities denominated in foreign
currencies.......................... 13,776
------------
NET DEPRECIATION..................... (38,916,830)
------------
NET GAIN............................. 20,052,654
------------
NET INCREASE............................. $ 21,807,752
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE YEAR
AUGUST 31, ENDED
1998 FEBRUARY 28, 1998*
- ---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................... $ 1,755,098 $ 3,919,171
Net realized gain................................... 58,969,484 2,910,628
Net change in unrealized appreciation............... (38,916,830) 78,610,298
------------ ------------
NET INCREASE.................................... 21,807,752 85,440,097
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.................................. (7,763) (3,553)
Class B shares.................................. (779,985) (3,902,063)
Class C shares.................................. (894) (280)
Class D shares.................................. (178) (61)
Net realized gain
Class A shares.................................. (529) (24,201)
Class B shares.................................. (125,490) (16,373,274)
Class C shares.................................. (174) (4,095)
Class D shares.................................. (10) (315)
------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS............... (915,023) (20,307,842)
------------ ------------
Net increase (decrease) from transactions in shares
of beneficial interest............................. 3,152,925 (19,765,137)
------------ ------------
NET INCREASE.................................... 24,045,654 45,367,118
NET ASSETS:
Beginning of period................................. 397,606,620 352,239,502
------------ ------------
END OF PERIOD
(Including undistributed net investment income
of $1,101,559 and $135,281, respectively)....... $421,652,274 $397,606,620
============ ============
</TABLE>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Global Utilities Fund (the "Fund"), formerly Dean
Witter Global Utilities 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 seek both capital appreciation
and current income. The Fund seeks to achieve its objective by investing in
equity and fixed income securities of companies, issued by issuers worldwide,
which are engaged in the utilities industry. The Fund was organized as a
Massachusetts business trust on October 22, 1993 and commenced operations on May
31, 1994. On July 28, 1997, the Fund commenced offering three additional classes
of shares, with the then current shares designated as Class B shares.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Trustees); (2) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (3) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager"), formerly Dean Witter InterCapital Inc., that sale 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 portfolio securities
may be valued by an outside pricing service approved by the
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
Trustees. The pricing service may utilize 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 and other distributions are recorded on the ex-dividend date
except for certain dividends on 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 foreign currency gain or
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
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.
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 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.
H. ORGANIZATIONAL EXPENSES -- The Investment Manager paid the organizational
expenses of the Fund in the amount of approximately $174,000 which have been
reimbursed for the full amount thereof. Such expenses have been deferred and are
being amortized on the straight-line method over a period not to exceed five
years from the commencement of operations.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.65% to the portion of the daily net assets not exceeding
$500 million and 0.625% to the portion of the daily net assets exceeding $500
million.
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager. The Fund has
adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) the average daily net
assets of Class B; and (iii) Class C -- up to 1.0% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of, Morgan Stanley
Dean Witter Financial Advisors and others who engage in or support distribution
of the shares or who service shareholder accounts, including overhead and
telephone expenses; printing and distribution of prospectuses and reports used
in connection with the offering of these shares to other than current
shareholders; and preparation, printing and distribution of sales literature and
advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and Distributor,
and other selected broker-dealers for their opportunity costs in advancing such
amounts, which compensation would be in the form of a carrying charge on any
unreimbursed expenses.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
distribution fees from the Fund pursuant to the Plan and contingent deferred
sales charges paid by investors upon redemption of Class B shares. Although
there is no legal obligation for the Fund to pay expenses incurred in excess of
payments made to the Distributor under the Plan and the proceeds of contingent
deferred sales charges paid by investors upon redemption of shares, if for any
reason the Plan is terminated, the Trustees will consider at that time the
manner in which to treat such expenses. The Distributor has advised the Fund
that such excess amounts, including carrying charges, totaled $10,126,999 at
August 31, 1998.
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 account executives may be reimbursed in the subsequent
calendar year. For the six months ended August 31, 1998, the distribution fee
was accrued for Class A shares and Class C shares at the annual rate of 0.25%
and 1.0%, respectively.
The Distributor has informed the Fund that for the six months ended August 31,
1998, it received contingent deferred sales charges from certain redemptions of
the Fund's Class B shares and Class C shares of $219,994 and $471, respectively
and received $5,203 in front-end sales charges from sales of the Fund's Class A
shares. The respective shareholders pay such charges which are not an expense of
the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended August 31, 1998 aggregated
$66,430,749 and $149,223,555, respectively.
For the six months ended August 31, 1998, the Fund incurred brokerage
commissions of $2,335 with DWR for portfolio transactions executed on behalf of
the Fund.
For the six months ended August 31, 1998, the Fund incurred brokerage
commissions of $116,151 with Morgan Stanley & Co. Inc., an affiliate of the
Investment Manager, for portfolio transactions executed on behalf of the Fund.
At August 31, 1998, the Fund's receivable for investments sold included
unsettled trades with Morgan Stanley & Co., Inc. of $4,113,382.
14
<PAGE> 15
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At August 31, 1998, the Fund had
transfer agent fees and expenses payable of approximately $1,000.
5. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
AUGUST 31, 1998 FEBRUARY 28, 1998*
------------------------- --------------------------
(unaudited)
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold........................................................ 90,944 $ 1,524,227 64,407 $ 867,738
Reinvestment of dividends and distributions................. 408 6,877 1,974 26,818
Redeemed.................................................... (16,024) (270,891) (3,608) (51,558)
---------- ----------- ---------- ------------
Net increase - Class A...................................... 75,328 1,260,213 62,773 842,998
---------- ----------- ---------- ------------
CLASS B SHARES
Sold........................................................ 5,300,155 89,774,438 5,287,804 71,906,678
Reinvestment of dividends and distributions................. 46,969 790,880 1,337,025 18,124,561
Redeemed.................................................... (5,320,982) (89,506,090) (8,174,924) (110,798,834)
---------- ----------- ---------- ------------
Net increase (decrease) - Class B........................... 26,142 1,059,228 (1,550,095) (20,767,595)
---------- ----------- ---------- ------------
CLASS C SHARES
Sold........................................................ 57,661 984,696 10,598 145,286
Reinvestment of dividends and distributions................. 58 982 311 4,213
Redeemed.................................................... (10,313) (172,083) (225) (3,358)
---------- ----------- ---------- ------------
Net increase - Class C...................................... 47,406 813,595 10,684 146,141
---------- ----------- ---------- ------------
CLASS D SHARES
Sold........................................................ 1,241 19,769 926 12,944
Reinvestment of dividends and distributions................. 7 120 27 375
---------- ----------- ---------- ------------
Net increase - Class D...................................... 1,248 19,889 953 13,319
---------- ----------- ---------- ------------
Net increase (decrease) in Fund............................. 150,124 $ 3,152,925 (1,475,685) $(19,765,137)
========== =========== ========== ============
</TABLE>
- ---------------------
* For Class A, C and D shares, for the period July 28, 1997 (issue date) through
February 28, 1998.
6. FEDERAL INCOME TAX STATUS
Capital and 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
15
<PAGE> 16
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS August 31, 1998 (unaudited) continued
and will elect to defer net capital and foreign currency losses of approximately
$8,166,000 and $11,000, respectively, during fiscal 1998.
As of February 28, 1998, the Fund had temporary book/tax differences primarily
attributable to post-October losses.
7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
At August 31, 1998, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.
16
<PAGE> 17
MORGAN STANLEY 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 PERIOD
FOR THE SIX FOR THE YEAR ENDED FEBRUARY 28, MAY 31, 1994*
MONTHS ENDED --------------------------------- THROUGH
AUGUST 31, 1998++ 1998++++ 1997 1996** FEBRUARY 28, 1995
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........... $15.09 $12.66 $11.33 $ 9.80 $10.00
------ ------ ------ ------ ------
Net investment income.......................... 0.07 0.15 0.10 0.18 0.13
Net realized and unrealized gain (loss)........ 0.78 3.05 1.35 1.64 (0.21)
------ ------ ------ ------ ------
Total from investment operations............... 0.85 3.20 1.45 1.82 (0.08)
------ ------ ------ ------ ------
Less dividends and distributions from:
Net investment income......................... (0.03) (0.15) (0.12) (0.16) (0.12)
Net realized gain............................. -- (0.62) -- (0.13) --
------ ------ ------ ------ ------
Total dividends and distributions.............. (0.03) (0.77) (0.12) (0.29) (0.12)
------ ------ ------ ------ ------
Net asset value, end of period................. $15.91 $15.09 $12.66 $11.33 $ 9.80
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN+....................... 5.65%(1) 26.06% 12.91% 18.76% (0.87)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses....................................... 1.67%(2)(3) 1.80% 1.82% 1.87% 1.97%(2)
Net investment income.......................... 0.79%(2)(3) 1.08% 0.85% 1.66% 1.83%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........ $418,496 $396,483 $352,240 $360,347 $337,600
Portfolio turnover rate........................ 17%(1) 14% 10% 16% 2%(1)
</TABLE>
- ---------------------
* Commencement of operations.
** Year ended February 29.
++ Prior to July 28, 1997, the Fund issued one class of shares. All shares
held prior to that date have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE> 18
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JULY 28, 1997*
MONTHS ENDED THROUGH
AUGUST 31, 1998++ FEBRUARY 28, 1998++
- -----------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $15.10 $13.77
------ ------
Net investment income....................................... 0.11 0.07
Net realized and unrealized gain............................ 0.79 1.76
------ ------
Total from investment operations............................ 0.90 1.83
------ ------
Less dividends and distributions from:
Net investment income...................................... (0.08) (0.07)
Net realized gain.......................................... -- (0.43)
------ ------
Total dividends and distributions........................... (0.08) (0.50)
------ ------
Net asset value, end of period.............................. $15.92 $15.10
====== ======
TOTAL INVESTMENT RETURN+.................................... 5.96%(1) 13.74%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.11%(2)(3) 1.18%(2)
Net investment income....................................... 1.35%(2)(3) 0.88%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $2,199 $948
Portfolio turnover rate..................................... 17%(1) 14%
CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $15.07 $13.77
------ ------
Net investment income....................................... 0.04 0.01
Net realized and unrealized gain............................ 0.80 1.76
------ ------
Total from investment operations............................ 0.84 1.77
------ ------
Less dividends and distributions from:
Net investment income...................................... (0.04) (0.04)
Net realized gain.......................................... -- (0.43)
------ ------
Total dividends and distributions........................... (0.04) (0.47)
------ ------
Net asset value, end of period.............................. $15.87 $15.07
====== ======
TOTAL INVESTMENT RETURN+.................................... 5.56%(1) 13.24%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.86%(2)(3) 1.93%(2)
Net investment income....................................... 0.60%(2)(3) 0.06%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $922 $161
Portfolio turnover rate..................................... 17%(1) 14%
</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
18
<PAGE> 19
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JULY 28, 1997*
MONTHS ENDED THROUGH
AUGUST 31, 1998++ FEBRUARY 28, 1998++
- -----------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
CLASS D SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $15.11 $13.77
------ ------
Net investment income....................................... 0.14 0.09
Net realized and unrealized gain............................ 0.79 1.76
------ ------
Total from investment operations............................ 0.93 1.85
------ ------
Less dividends and distributions from:
Net investment income...................................... (0.10) (0.08)
Net realized gain.......................................... -- (0.43)
------ ------
Total dividends and distributions........................... (0.10) (0.51)
------ ------
Net asset value, end of period.............................. $15.94 $15.11
====== ======
TOTAL INVESTMENT RETURN+.................................... 6.12%(1) 13.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.86%(2)(3) 0.92%(2)
Net investment income....................................... 1.60%(2)(3) 1.04%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $35 $14
Portfolio turnover rate..................................... 17%(1) 14%
</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
19
<PAGE> 20
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
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
Barry Fink
Vice President, Secretary and General Counsel
Edward F. Gaylor
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of the
Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
MORGAN STANLEY
DEAN WITTER
GLOBAL UTILITIES
FUND
[PHOTO]
SEMIANNUAL REPORT
AUGUST 31, 1998
