MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND, N-30D, 2000-04-28

MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
N-30D, 2000-04-28

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<PAGE>

MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND TWO WORLD TRADE CENTER,
LETTER TO THE SHAREHOLDERS FEBRUARY 29, 2000 NEW YORK, NEW YORK 10048

DEAR SHAREHOLDER:

Global utilities stocks posted strong returns during the 12-month period ended
February 29, 2000, amid some market volatility. During the first half of the
period, electricity stocks and other value-oriented utilities outperformed the
more growth-oriented telecommunications issues. During the second half of the
period, however, telecommunications and other technology-oriented stocks
dominated the equity markets both in the United States and overseas. In Europe,
telecom stocks further benefited from a number of high-profile corporate
transactions, most notably the Vodafone AirTouch takeover bid for Mannesmann.

PERFORMANCE

For the 12-month period ended February 29, 2000, Morgan Stanley Dean Witter
Global Utilities Fund's Class B shares returned 29.81 percent, compared to a
return of 18.73 percent for the broad-based Morgan Stanley Capital International
World Index (MSCI World Index). The Fund's outperformance relative to its
benchmark index is attributable to its overweighting of telecom stocks during
the year. For the same period, the Fund's Class A, C and D shares had total
returns of 30.68 percent, 29.73 percent and 31.08 percent, respectively. The
performance of the Fund's four share classes varies because of differing
expenses. Total return figures assume the reinvestment of all distributions and
do not reflect the deduction of any applicable sales charges. The accompanying
chart compares the performance of the Fund to that of the MSCI World Index.

PORTFOLIO STRATEGY

The Fund's investment strategy during the fiscal year included moderating its
telecommunications position in light of that sector's exceptional performance
during the second half of the period. While telecommunications holdings
continued to represent more than half of invested assets at fiscal year-end,
positions of value-oriented utilities, which had been out of favor, were
increased.

<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
LETTER TO THE SHAREHOLDERS FEBRUARY 29, 2000, CONTINUED

Among the new stocks added to the portfolio during the fiscal year was NTT
Mobile Communication Network, Japan's dominant cellular communications company
that is successfully selling a cell-phone-to-Internet service. Portfolio
additions in the United States included Calpine, Dynegy, Level 3 Communications
and Metromedia Fiber Network.

LOOKING AHEAD

After a very strong year for telecommunications stocks, we believe that the more
traditional utilities sectors, which have been out of favor, could begin to
reflect their value and perform more strongly in the months ahead. These
utilities companies are poised to benefit from deregulation and diversification
into new business areas. We believe that the Fund, with its exposure to both the
dynamic telecommunication sector and traditional utilities companies, is well
positioned to participate in any future growth of those sectors.

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,

<TABLE>
<S> <C>
/s/ Charles A. Fiumefreddo /s/ Mitchell M. Merin
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>

2
<PAGE>

MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FUND PERFORMANCE FEBRUARY 29, 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>
May 1994 10,000 10,000
February 1995 9,913 10,098
February 1996 11,773 12,495
February 1997 13,293 14,172
February 1998 16,757 17,588
February 1999 21,382 19,822
February 2000 27,657(3) 23,535
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR
CLASS A, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF
CLASS B SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------------------------------------------------------------
CLASS B* CLASS A**
------------------------------------------- -------------------------------------------
PERIOD ENDED 2/29/00 PERIOD ENDED 2/29/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 29.81%(1) 24.81%(2) 1 Year 30.68%(1) 23.82%(2)
5 Year 22.87 (1) 22.69 (2) Since Inception (7/28/97) 28.33 (1) 25.69 (2)
Since Inception (5/31/94) 19.43 (1) 19.36 (2)
</TABLE>

<TABLE>
<CAPTION>
CLASS C+ CLASS D#
-------------------------------------------- --------------------------------------------
PERIOD ENDED 2/29/00 PERIOD ENDED 2/29/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 29.73%(1) 28.73%(2) 1 Year 31.08%(1)
Since Inception (7/28/97) 27.36 (1) 27.36 (2) Since Inception (7/28/97) 28.68 (1)
</TABLE>

- ------------------------

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value after the deduction of a 1% contingent deferred sales charge
(CDSC), assuming a complete redemption on February 29, 2000.
(4) The Morgan Stanley Capital International World Index (MSCI) measures
performance from a diverse range of global stock markets including the
U.S., 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 CDSC for Class C shares is 1% for shares redeemed within one
year of purchase.
# Class D shares have no sales charge.

3
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (94.1%)
AUSTRALIA (0.7%)
ENERGY
1,325,000 Australian Gas Light Company Ltd................................................................ $ 6,597,076
------------

BERMUDA (1.2%)
TELECOMMUNICATIONS
255,000 Global Crossing Ltd.*........................................................................... 11,889,375
------------

CANADA (5.1%)
ELECTRONIC DATA PROCESSING
600,000 Sanga International Inc.(a)..................................................................... --
------------
ENERGY
520,000 Enbridge Inc.................................................................................... 9,499,518
275,000 TransCanada Pipelines Ltd....................................................................... 1,876,810
------------
11,376,328
------------
TELECOMMUNICATIONS
270,000 AT&T Canada, Inc. (Class B)*.................................................................... 15,626,250
180,000 BCT.Telus Communications Inc. (Non-Voting) (Class A)............................................ 4,907,624
163,233 BCT.Telus Communications, Inc. (Voting)......................................................... 4,388,589
------------
24,922,463
------------
TELECOMMUNICATION EQUIPMENT
115,000 Nortel Networks Corp............................................................................ 12,724,045
------------

TOTAL CANADA.................................................................................... 49,022,836
------------
DENMARK (1.4%)
TELECOMMUNICATIONS
160,000 Tele Danmark AS (B Shares)...................................................................... 13,173,684
------------
FINLAND (1.4%)
TELECOMMUNICATION EQUIPMENT
70,000 Nokia Oyj (A Shares)............................................................................ 13,984,299
------------
FRANCE (3.6%)
ENGINEERING & CONSTRUCTION
70,000 Suez Lyonnaise des Eaux......................................................................... 11,552,247
101,454 Vivendi......................................................................................... 11,945,417
------------
23,497,664
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
70,000 France Telecom S.A. (ADR)....................................................................... $ 11,515,000
------------

TOTAL FRANCE.................................................................................... 35,012,664
------------

GERMANY (2.8%)
DIVERSIFIED ELECTRONIC PRODUCTS
32,000 Siemens AG...................................................................................... 5,728,834
------------
ELECTRIC UTILITIES
125,000 RWE AG.......................................................................................... 4,186,121
220,000 VEBA AG......................................................................................... 9,851,741
------------
14,037,862
------------
TELECOMMUNICATIONS
94,000 Deutsche Telecom AG............................................................................. 7,883,516
------------

TOTAL GERMANY................................................................................... 27,650,212
------------

ITALY (2.0%)
TELECOMMUNICATIONS
644,000 Telecom Italia SpA.............................................................................. 11,317,959
------------
WIRELESS COMMUNICATIONS
580,000 Telecom Italia Mobile SpA....................................................................... 7,920,576
------------

TOTAL ITALY..................................................................................... 19,238,535
------------

JAPAN (1.7%)
TELECOMMUNICATIONS
480 Nippon Telegraph & Telephone Corp............................................................... 6,620,089
------------
WIRELESS COMMUNICATIONS
250 NTT Mobile Communication Network, Inc........................................................... 10,048,997
------------

TOTAL JAPAN..................................................................................... 16,669,086
------------

NETHERLANDS (2.1%)
AIR FREIGHT/DELIVERY SERVICES
147,000 TNT Post Group NV............................................................................... 3,651,726
------------
TELECOMMUNICATIONS
135,000 Koninklijke KPN NV.............................................................................. 17,204,596
------------

TOTAL NETHERLANDS............................................................................... 20,856,322
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
NEW ZEALAND (0.5%)
TELECOMMUNICATIONS
1,080,000 Telecom Corporation of New Zealand Ltd.......................................................... $ 4,492,692
------------
PORTUGAL (2.2%)
ELECTRIC UTILITIES
360,000 EDP-Electricidade de Portugal, S.A.............................................................. 7,202,348
------------
TELECOMMUNICATIONS
550,000 Portugal Telecom S.A. (Registered Shares)....................................................... 7,839,990
------------
WIRELESS COMMUNICATIONS
250,000 Telecel-Comunicacoes Pessoais, S.A.............................................................. 5,814,728
------------

TOTAL PORTUGAL.................................................................................. 20,857,066
------------

SPAIN (2.9%)
ELECTRIC UTILITIES
475,000 Empresa Nacional de Electricidad S.A............................................................ 10,071,542
340,000 Iberdrola S.A................................................................................... 4,275,586
------------
14,347,128
------------
TELECOMMUNICATIONS
464,100 Telefonica S.A.*................................................................................ 13,369,902
------------

TOTAL SPAIN..................................................................................... 27,717,030
------------

SWEDEN (1.6%)
TELECOMMUNICATION EQUIPMENT
160,000 Ericsson (L.M.) Telephone Co. AB (Series "B" Free).............................................. 15,348,380
------------

SWITZERLAND (0.9%)
ELECTRICAL PRODUCTS
80,000 ABB Ltd......................................................................................... 8,531,090
------------

UNITED KINGDOM (7.0%)
ELECTRIC UTILITIES
360,000 Independent Energy Holdings PLC (ADR)*.......................................................... 17,775,000
1,600,000 Scottish Power PLC.............................................................................. 12,141,210
------------
29,916,210
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
63,000 COLT Telecom Group PLC (ADR)*................................................................... $ 14,600,250
250,000 Energis PLC*.................................................................................... 12,640,520
------------
27,240,770
------------
WIRELESS COMMUNICATIONS
190,000 Vodafone AirTouch PLC (ADR)..................................................................... 10,960,625
------------

TOTAL UNITED KINGDOM............................................................................ 68,117,605
------------

UNITED STATES (57.0%)
CABLE TELEVISION
129,800 AT&T Corp. - Liberty Media Group (Class A)*..................................................... 6,782,050
61,600 Comcast Corp. (Class A Special)*................................................................ 2,618,000
93,200 Cox Communications, Inc. (Class A)*............................................................. 4,234,775
98,300 MediaOne Group, Inc.*........................................................................... 7,716,550
------------
21,351,375
------------
COMPUTER COMMUNICATIONS
105,000 Cisco Systems, Inc.*............................................................................ 13,873,125
------------
DIVERSIFIED COMMERCIAL SERVICES
280,000 Convergys Corp.*................................................................................ 10,780,000
------------
ELECTRIC UTILITIES
205,000 AES Corp. (The)*................................................................................ 17,181,562
110,000 Allegheny Energy, Inc........................................................................... 2,853,125
155,000 Calpine Corp.*.................................................................................. 14,182,500
300,000 CMS Energy Corp................................................................................. 5,025,000
150,000 Consolidated Edison, Inc........................................................................ 4,134,375
290,000 Constellation Energy Group, Inc................................................................. 8,627,500
300,000 Dominion Resources, Inc......................................................................... 11,006,250
735,000 DPL, Inc........................................................................................ 15,802,500
345,000 DQE, Inc........................................................................................ 16,042,500
130,000 DTE Energy Co................................................................................... 3,924,375
245,000 Duke Energy Corp................................................................................ 11,882,500
555,000 Edison International............................................................................ 14,603,437
485,000 Energy East Corp................................................................................ 10,185,000
220,000 FPL Group, Inc.................................................................................. 8,497,500
225,000 Montana Power Co................................................................................ 8,859,375
275,000 New Century Energies, Inc....................................................................... 7,442,187
350,000 PECO Energy Co.................................................................................. 13,059,375
345,000 PG & E Corp..................................................................................... 7,115,625
240,000 Pinnacle West Capital Corp...................................................................... 6,630,000
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
PORTFOLIO OF INVESTMENTS FEBRUARY 29, 2000, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
500,000 Reliant Energy, Inc............................................................................. $ 10,281,250
370,000 Southern Co..................................................................................... 8,209,375
200,000 Texas Utilities Co.............................................................................. 6,525,000
530,000 UtiliCorp United, Inc........................................................................... 8,678,750
------------
220,749,061
------------
ENERGY
190,000 Columbia Energy Group........................................................................... 11,210,000
269,100 Dynegy, Inc. (Class A).......................................................................... 12,614,062
245,000 El Paso Energy Corp............................................................................. 9,080,313
275,000 ENRON Corp...................................................................................... 18,975,000
430,000 KeySpan Corp.................................................................................... 8,761,250
------------
60,640,625
------------
MEDIA CONGLOMERATES
73,600 Time Warner Inc................................................................................. 6,292,800
------------
TELECOMMUNICATIONS
120,000 ALLTEL Corp..................................................................................... 6,960,000
250,900 AT&T Corp....................................................................................... 12,403,869
252,000 Bell Atlantic Corp.............................................................................. 12,332,250
435,000 BellSouth Corp.................................................................................. 17,726,250
290,000 BroadWing Inc.*................................................................................. 8,609,375
110,000 General Motors Corp. (Class H)*................................................................. 13,255,000
295,000 Global Telesystems Group, Inc.*................................................................. 7,375,000
205,000 GTE Corp........................................................................................ 12,095,000
100,000 Level 3 Communications, Inc.*................................................................... 11,381,250
255,000 MCI WorldCom, Inc.*............................................................................. 11,379,375
77,000 Metromedia Fiber Network, Inc. (Class A)*....................................................... 5,534,375
285,000 Qwest Communications International, Inc.*....................................................... 13,216,875
382,408 SBC Communications, Inc......................................................................... 14,531,504
190,000 Sprint Corp. (FON Group)........................................................................ 11,590,000
182,977 U.S. West, Inc.................................................................................. 13,288,705
109,800 Williams Communications Group, Inc.*............................................................ 4,886,100
------------
176,564,928
------------
TELECOMMUNICATION EQUIPMENT
84,700 American Tower Corp. (Class A)*................................................................. 4,171,475
140,000 Lucent Technologies, Inc........................................................................ 8,330,000
47,800 Motorola, Inc................................................................................... 8,149,900
------------
20,651,375
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
WIRELESS COMMUNICATIONS
220,000 Sprint Corp. (PCS Group)*....................................................................... $ 11,385,000
125,500 WinStar Communications, Inc.*................................................................... 9,710,563
------------
21,095,563
------------

TOTAL UNITED STATES............................................................................. 551,998,852
------------

TOTAL COMMON STOCKS
(IDENTIFIED COST $587,144,487).................................................................. 911,156,804
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ----------
<C> <S> <C>
SHORT-TERM INVESTMENT (b) (5.7%)
U.S. GOVERNMENT AGENCY
$ 55,300 Federal Home Loan Mortgage Corp. 5.72% due 03/01/00 (AMORTIZED $55,300,000)..................... 55,300,000
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $642,444,487) (c)........................................................ 99.8% 966,456,804

OTHER ASSETS IN EXCESS OF LIABILITIES..................................................... 0.2 1,778,359
----- -------------

NET ASSETS................................................................................ 100.0% $ 968,235,163
----- -------------
----- -------------
</TABLE>

- ---------------------

ADR American Depository Receipt.
* Non-income producing security.
(a) Issuer in bankruptcy.
(b) Purchased on a discount basis. The interest rate shown has been adjusted to
reflect a money market equivalent yield.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $365,928,253 and the
aggregate gross unrealized depreciation is $41,915,936, resulting in net
unrealized appreciation of $324,012,317.

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
SUMMARY OF INVESTMENTS FEBRUARY 29, 2000

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Air Freight/Delivery Services................................................................... $ 3,651,726 0.4%
Cable Television................................................................................ 21,351,375 2.2
Computer Communications......................................................................... 13,873,125 1.4
Diversified Commercial Services................................................................. 10,780,000 1.1
Diversified Electronic Products................................................................. 5,728,834 0.6
Electric Utilities.............................................................................. 286,252,609 29.6
Electrical Products............................................................................. 8,531,090 0.9
Energy.......................................................................................... 78,614,029 8.1
Engineering & Construction...................................................................... 23,497,664 2.4
Media Conglomerates............................................................................. 6,292,800 0.6
Telecommunications.............................................................................. 334,034,964 34.5
Telecommunication Equipment..................................................................... 62,708,099 6.5
U.S. Government Agency.......................................................................... 55,300,000 5.7
Wireless Communications......................................................................... 55,840,489 5.8
------------ -----
$966,456,804 99.8%
------------ -----
------------ -----
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks................................................................................... $911,156,804 94.1%
Short-Term Investment........................................................................... 55,300,000 5.7
------------ -----
$966,456,804 99.8%
------------ -----
------------ -----
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $642,444,487).............................................................. $966,456,804
Cash.......................................................................................... 90,490
Receivable for:
Shares of beneficial interest sold........................................................ 2,950,607
Dividends................................................................................. 1,599,820
Foreign withholding taxes reclaimed....................................................... 262,863
Prepaid expenses and other assets............................................................. 46,221
------------
TOTAL ASSETS............................................................................. 971,406,805
------------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased................................................. 1,879,148
Plan of distribution fee.................................................................. 658,866
Investment management fee................................................................. 486,606
Accrued expenses and other payables........................................................... 147,022
------------
TOTAL LIABILITIES........................................................................ 3,171,642
------------
NET ASSETS............................................................................... $968,235,163
============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................... $590,399,384
Net unrealized appreciation................................................................... 323,986,897
Accumulated undistributed net investment income............................................... 1,703,867
Accumulated undistributed net realized gain................................................... 52,145,015
------------
NET ASSETS............................................................................... $968,235,163
============
CLASS A SHARES:
Net Assets.................................................................................... $13,313,234
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 664,947
NET ASSET VALUE PER SHARE................................................................ $20.02
============

MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)........................................ $21.13
============
CLASS B SHARES:
Net Assets.................................................................................... $944,600,427
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 47,210,555
NET ASSET VALUE PER SHARE................................................................ $20.01
============
CLASS C SHARES:
Net Assets.................................................................................... $10,155,772
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 510,405
NET ASSET VALUE PER SHARE................................................................ $19.90
============
CLASS D SHARES:
Net Assets.................................................................................... $165,730
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)..................................... 8,261
NET ASSET VALUE PER SHARE................................................................ $20.06
============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 29, 2000

<TABLE>
<S> <C>
NET INVESTMENT INCOME

INCOME
Dividends (net of $620,639 foreign withholding tax)........................................... $ 14,280,120
Interest...................................................................................... 3,466,542
------------

TOTAL INCOME............................................................................. 17,746,662
------------

EXPENSES
Plan of distribution fee (Class A shares)..................................................... 21,390
Plan of distribution fee (Class B shares)..................................................... 6,954,294
Plan of distribution fee (Class C shares)..................................................... 71,998
Investment management fee..................................................................... 4,920,659
Transfer agent fees and expenses.............................................................. 815,156
Custodian fees................................................................................ 119,537
Registration fees............................................................................. 111,979
Shareholder reports and notices............................................................... 110,764
Professional fees............................................................................. 91,647
Trustees' fees and expenses................................................................... 12,493
Organizational expenses....................................................................... 11,988
Other......................................................................................... 12,294
------------

TOTAL EXPENSES........................................................................... 13,254,199
------------

NET INVESTMENT INCOME.................................................................... 4,492,463
------------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain/loss on:
Investments............................................................................... 119,391,644
Foreign exchange transactions............................................................. (9,097)
------------

NET GAIN................................................................................. 119,382,547
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... 83,664,061
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies....................................................... (20,863)
------------

NET APPRECIATION......................................................................... 83,643,198
------------

NET GAIN................................................................................. 203,025,745
------------

NET INCREASE.................................................................................. $207,518,208
============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
FEBRUARY 29, 2000 FEBRUARY 28, 1999
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income................................................. $ 4,492,463 $ 3,246,437
Net realized gain..................................................... 119,382,547 77,667,622
Net change in unrealized appreciation................................. 83,643,198 30,477,011
------------ ------------

NET INCREASE..................................................... 207,518,208 111,391,070
------------ ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.................................................... (83,825) (29,255)
Class B shares.................................................... (3,039,664) (2,974,816)
Class C shares.................................................... (30,462) (9,401)
Class D shares.................................................... (1,867) (828)
Net realized gain
Class A shares.................................................... (948,759) (318,524)
Class B shares.................................................... (80,131,375) (54,115,225)
Class C shares.................................................... (832,287) (216,058)
Class D shares.................................................... (13,662) (9,518)
------------ ------------

TOTAL DIVIDENDS AND DISTRIBUTIONS................................ (85,081,901) (57,673,625)
------------ ------------
Net increase from transactions in shares of beneficial interest....... 296,584,034 97,890,757
------------ ------------

NET INCREASE..................................................... 419,020,341 151,608,202

NET ASSETS:
Beginning of period................................................... 549,214,822 397,606,620
------------ ------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $1,703,867 AND
$376,319, RESPECTIVELY)........................................... $968,235,163 $549,214,822
============ ============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000

1. ORGANIZATION AND ACCOUNTING POLICIES

Morgan Stanley 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'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 issuers worldwide, which are primarily 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
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 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 Trustees. The pricing service may utilize a matrix
system incorporating security quality, maturity and coupon as the

11
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, CONTINUED

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

12
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, CONTINUED

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.

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 were deferred and fully
amortized as of May 31, 1999.

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. Effective May 1, 1999, the Agreement was amended to reduce the annual
rate to 0.60% of the portion of daily net assets in excess of $1 billion.

13
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, CONTINUED

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager. The Fund has
adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A - up
to 0.25% of the average daily net assets of Class A; (ii) Class B - 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) the average daily net
assets of Class B; and (iii) Class C - up to 1.0% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for (1)
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of Morgan Stanley Dean
Witter Financial Advisors and others who engage in or support distribution of
the shares or who service shareholder accounts, including overhead and telephone
expenses; (2) printing and distribution of prospectuses and reports used in
connection with the offering of these shares to other than current shareholders;
and (3) preparation, printing and distribution of sales literature and
advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and Distributor,
and other selected broker-dealers for their opportunity costs in advancing such
amounts, which compensation would be in the form of a carrying charge on any
unreimbursed expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future

14
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, 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 $18,764,652 at
February 29, 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 February 29, 2000 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 year ended February 29, 2000,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $2,160, $751,702 and
$6,814, respectively and received $45,198 in front-end sales charges from sales
of the Fund's Class A shares. The respective shareholders pay such charges which
are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the year ended February 29, 2000 aggregated
$430,605,051 and $361,200,019, respectively.

For the year ended February 29, 2000, the Fund incurred brokerage commissions of
$18,702 with DWR for portfolio transactions executed on behalf of the Fund.

For the year ended February 29, 2000, the fund incurred brokerage commissions of
$137,545 with Morgan Stanley & Co. Inc., an affiliate of the Investment Manager
and Distributor, for portfolio transactions executed on behalf of the Fund.

15
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, CONTINUED

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At February 29, 2000, the Fund had
transfer agent fees and expenses payable of approximately $17,000.

5. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
FEBRUARY 29, 2000 FEBRUARY 28, 1999
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 248,936 $ 4,643,609 240,816 $ 4,119,117
Reinvestment of dividends and distributions...................... 51,630 952,265 19,668 331,877
Acquisition of TCW/DW Global Telecom Trust....................... 179,364 3,214,533 -- --
Redeemed......................................................... (100,084) (1,816,074) (38,156) (655,888)
----------- ------------- ----------- -------------
Net increase -- Class A.......................................... 379,846 6,994,333 222,328 3,795,106
----------- ------------- ----------- -------------
CLASS B SHARES
Sold............................................................. 12,053,173 222,066,989 12,373,472 211,867,538
Reinvestment of dividends and distributions...................... 4,049,198 74,773,828 3,000,176 50,663,889
Acquisition of TCW/DW Global Telecom Trust....................... 12,225,911 219,153,286 -- --
Redeemed......................................................... (12,652,467) (232,053,322) (10,108,495) (171,762,641)
----------- ------------- ----------- -------------
Net increase -- Class B.......................................... 15,675,815 283,940,781 5,265,153 90,768,786
----------- ------------- ----------- -------------
CLASS C SHARES
Sold............................................................. 382,126 7,027,864 203,868 3,508,714
Reinvestment of dividends and distributions...................... 45,087 828,680 12,557 211,323
Acquisition of TCW/DW Global Telecom Trust....................... 76,323 1,361,239 -- --
Redeemed......................................................... (191,340) (3,559,146) (28,900) (493,816)
----------- ------------- ----------- -------------
Net increase -- Class C.......................................... 312,196 5,658,637 187,525 3,226,221
----------- ------------- ----------- -------------
CLASS D SHARES
Sold............................................................. 203,662 3,579,874 5,348 91,912
Reinvestment of dividends and distributions...................... 805 14,784 523 8,837
Redeemed......................................................... (203,024) (3,604,375) (6) (105)
----------- ------------- ----------- -------------
Net increase (decrease) -- Class D............................... 1,443 (9,717) 5,865 100,644
----------- ------------- ----------- -------------
Net increase in Fund............................................. 16,369,300 $ 296,584,034 5,680,871 $ 97,890,757
=========== ============= =========== =============
</TABLE>

6. 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 $18,000 during fiscal 2000.

16
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000, CONTINUED

As of February 29, 2000, the Fund had temporary book/tax differences primarily
attributable to post-October losses and capital loss deferrals on wash sales and
permanent book/tax differences attributable to foreign currency losses. To
reflect reclassifications arising from the permanent differences, accumulated
undistributed net investment income was charged and accumulated undistributed
net realized gain was credited $9,097.

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 February 29, 2000, there were no outstanding forward contracts.

8. ACQUISITION OF TCW/DW GLOBAL TELECOM TRUST

On June 28, 1999, the Fund acquired all the net assets of TCW/DW Global Telecom
Trust ("Global") based on the respective valuations as of the close of business
on June 25, 1999, pursuant to a plan of reorganization approved by the
shareholders of Global on June 8, 1999. The acquisition was accomplished by a
tax-free exchange of 179,364 Class A shares of the Fund at a net asset value of
$17.92 per share for 216,883 Class A shares of Global; 12,225,911 Class B shares
of the Fund at a net asset value of $17.93 per share for 15,004,147 Class B
shares of Global; and 76,323 Class C shares of the Fund at a net asset value of
$17.84 per share for 93,581 Class C shares of Global. The net assets of the Fund
and Global immediately before the acquisition were $603,906,296 and
$223,729,058, respectively, including unrealized appreciation of $55,835,844 for
Global. Immediately after the acquisition, the combined net assets of the Fund
amounted to $827,635,354.

17
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of beneficial interest
outstanding throughout each year:

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
FEBRUARY 29, 2000 FEBRUARY 28, 1999 FEBRUARY 28, 1998
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES=/=

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $ 17.16 $ 15.10 $ 13.77
-------- -------- --------

Income from investment operations:
Net investment income.................................... 0.23 0.21 0.07
Net realized and unrealized gain......................... 4.78 4.02 1.76
-------- -------- --------

Total income from investment operations..................... 5.01 4.23 1.83
-------- -------- --------

Less dividends and distributions from:
Net investment income.................................... (0.20) (0.21) (0.07)
Net realized gain........................................ (1.95) (1.96) (0.43)
-------- -------- --------

Total dividends and distributions........................... (2.15) (2.17) (0.50)
-------- -------- --------

Net asset value, end of period.............................. $ 20.02 $ 17.16 $ 15.10
======== ======== ========

TOTAL RETURN+............................................... 30.68% 28.37% 13.74%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.06%(3) 1.10%(3) 1.18%(2)

Net investment income....................................... 1.25%(3) 1.30%(3) 0.88%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $13,313 $4,892 $948

Portfolio turnover rate..................................... 52% 40% 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>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE YEAR FEBRUARY 28,
-----------------------------------------------------------------
2000*=/= 1999=/= 1998++=/= 1997 1996*
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $ 17.15 $ 15.09 $ 12.66 $ 11.33 $ 9.80
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................................... 0.11 0.12 0.15 0.10 0.18
Net realized and unrealized gain......................... 4.78 4.01 3.05 1.35 1.64
-------- -------- -------- -------- --------
Total income from investment operations..................... 4.89 4.13 3.20 1.45 1.82
-------- -------- -------- -------- --------

Less dividends and distributions from:
Net investment income.................................... (0.08) (0.11) (0.15) (0.12) (0.16)
Net realized gain........................................ (1.95) (1.96) (0.62) -- (0.13)
-------- -------- -------- -------- --------

Total dividends and distributions........................... (2.03) (2.07) (0.77) (0.12) (0.29)
-------- -------- -------- -------- --------

Net asset value, end of period.............................. $ 20.01 $ 17.15 $ 15.09 $ 12.66 $ 11.33
======== ======== ======== ======== ========

TOTAL RETURN+............................................... 29.81% 27.60% 26.06% 12.91% 18.76%

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.74%(1) 1.71%(1) 1.80% 1.82% 1.87%

Net investment income....................................... 0.57%(1) 0.69%(1) 1.08% 0.85% 1.66%

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $944,600 $540,820 $396,483 $352,240 $360,347

Portfolio turnover rate..................................... 52% 40% 14% 10% 16%
</TABLE>

- ---------------------

* 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) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS, CONTINUED

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $ 17.08 $ 15.07 $ 13.77
-------- -------- --------

Income from investment operations:
Net investment income.................................... 0.09 0.07 0.01
Net realized and unrealized gain......................... 4.76 4.02 1.76
-------- -------- --------

Total income from investment operations..................... 4.85 4.09 1.77
-------- -------- --------

Less dividends and distributions from:
Net investment income.................................... (0.08) (0.12) (0.04)
Net realized gain........................................ (1.95) (1.96) (0.43)
-------- -------- --------

Total dividends and distributions........................... (2.03) (2.08) (0.47)
-------- -------- --------

Net asset value, end of period.............................. $ 19.90 $ 17.08 $ 15.07
======== ======== ========

TOTAL RETURN+............................................... 29.73% 27.36% 13.24%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.81%(3) 1.85%(3) 1.93%(2)

Net investment income....................................... 0.50%(3) 0.55%(3) 0.06%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $10,156 $3,386 $161

Portfolio turnover rate..................................... 52% 40% 14%
</TABLE>

- ---------------------

SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS, CONTINUED

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $ 17.18 $ 15.11 $ 13.77
-------- -------- --------

Income from investment operations:
Net investment income.................................... 0.32 0.25 0.09
Net realized and unrealized gain......................... 4.76 4.03 1.76
-------- -------- --------

Total income from investment operations..................... 5.08 4.28 1.85
-------- -------- --------

Less dividends and distributions from:
Net investment income.................................... (0.25) (0.25) (0.08)
Net realized gain........................................ (1.95) (1.96) (0.43)
-------- -------- --------

Total dividends and distributions........................... (2.20) (2.21) (0.51)
-------- -------- --------

Net asset value, end of period.............................. $ 20.06 $ 17.18 $ 15.11
======== ======== ========

TOTAL RETURN+............................................... 31.08% 28.70% 13.90%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.81%(3) 0.85%(3) 0.92%(2)

Net investment income....................................... 1.50%(3) 1.55%(3) 1.04%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $166 $117 $14

Portfolio turnover rate..................................... 52% 40% 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
21
<PAGE>

MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY DEAN WITTER GLOBAL UTILITIES FUND

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
Utilities Fund (the "Fund") at February 29, 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 February 29, 2000 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.

PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
APRIL 18, 2000

2000 FEDERAL TAX NOTICE (UNAUDITED)

During the year ended February 29, 2000, the Fund paid to its
shareholders $1.56 per share from long-term capital gains. For
such period, 31.23% of the income paid qualified for the dividends
received deduction available to corporations.

22
<PAGE>
(This page has been left blank intentionally.)
<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

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

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.

This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus. Read the
prospectus carefully before investing.

MORGAN STANLEY
DEAN WITTER
GLOBAL UTILITIES
FUND

[PHOTO]

ANNUAL REPORT
FEBRUARY 29, 2000