DEAN WITTER INTERNATIONAL SMALLCAP FUND, N-30D, 1995-01-05

DEAN WITTER INTERNATIONAL SMALLCAP FUND
N-30D, 1995-01-05

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<PAGE>
Dean Witter International SmallCap Fund
Two World Trade Center
New York, New York 10048

DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------

The market environment during Dean Witter International SmallCap Fund's
early months of existence was difficult. Short-term interest rates have
continued to rise in the United States, and bond markets have remained under
pressure. The world's equity markets have also been weakened in this scenario,
and investor sentiment has been depressed. As a result, the markets have drifted
down since mid-year, when the Fund commenced operations.

Since the Fund's inception on July 29, 1994, management has worked toward
achieving a fully invested portfolio. At the end of the period under review, the
Fund was approximately 94 percent invested. Since inception, through November
30, 1994, the Fund registered a total return of -10.80 percent, versus -5.44
percent for the NatWest Securities Euro-Pacific SmallCap Index. These
disappointing early results are attributable mainly to the negative impact of
hedging versus the yen and the poor performance of certain stocks, particularly
in Japan. During the initial offering period, $76.8 million was raised, and as
of November 30, 1994, the Fund had net assets in excess of $95 million.

After having enjoyed a year of strong relative performance (second half of
1993 through the first half of 1994) small companies have, against the above
background, generally underperformed their larger counterparts during the second
half of 1994. This underperformance has had little regard for the small-company
sector's strong overall fundamentals. For example, in continental Europe small
companies are currently trading at approximately a 15 percent discount to larger
stocks in terms of price/earnings ratios, and at a 30 percent premium in terms
of yield. Earnings growth is generally superior for small companies at this
stage of the economic cycle, since the operational leverage of small companies
acts to their advantage as growth returns to the international economy.

In Japan, investors have preferred cyclical stocks to secular growth
companies, a major cause of the Fund's underperformance in that market. The
portfolio continues to emphasize high-quality Japanese stocks, such as Nissin, a
consumer finance company; Xebio, an apparel retailer; Tstutsumi, Japan's leading
jewelry retailer; and Seikagaku, a pharmaceutical manufacturer. Companies like
these are growing significantly faster than the market average, but are trading
at a substantial discount in terms of price/earnings ratios.

The Fund is slightly overweighted in the other markets of the Far East,
particularly the rapidly growing Tiger economies of the Pacific Rim (Singapore,
Malaysia, Indonesia, Hong Kong, South Korea, the Philippines, Thailand and
Taiwan). Europe is slightly underweighted, particularly in the United Kingdom,
where economic recovery is much further advanced and small companies have
outperformed strongly. Given our enthusiasm regarding the prospects for small
companies in Japan, the Fund's largest country allocation, we believe the Fund
is well positioned for growth in 1995.
<PAGE>
We appreciate your support of Dean Witter International SmallCap Fund and
look forward to continuing to serve your investment needs and objectives.

Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS AND RIGHTS (93.8%)
ARGENTINA (1.1%)
AUTOMOTIVE
40,000 Ciadea S.A....................... $ 444,000
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
115,000 Nobleza Piccardo S.A............. 575,000
-------------
TOTAL ARGENTINA.................. 1,019,000
-------------
AUSTRALIA (1.2%)
BUILDING & CONSTRUCTION
700,000 MacMahon Holdings, Ltd........... 300,860
-------------
MANUFACTURING
230,000 Pacific BBA, Ltd................. 467,791
-------------
METALS & MINING
350,000 QCT Resources, Ltd............... 346,526
-------------
TOTAL AUSTRALIA.................. 1,115,177
-------------
BELGIUM (1.0%)
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
13,300 Quick Restaurants S.A............ 972,769
-------------
FINLAND (1.6%)
TELECOMMUNICATIONS
2,475 Benefon Oy Vappa................. 635,137
-------------
TRANSPORTATION
112,000 Finnair Oy....................... 981,811
-------------
TOTAL FINLAND.................... 1,616,948
-------------
FRANCE (6.8%)
FINANCIAL SERVICES
6,000 But S.A.......................... 1,008,992
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
8,300 Brioche Pasquier................. 1,004,895
-------------
INSURANCE
4,500 Cardif S.A....................... 642,440
-------------
MACHINERY - DIVERSIFIED
4,300 Sidel............................ 871,401
-------------
PHOTOGRAPHY
13,700 Grand Optical-Photoservice....... 965,236
-------------
TEXTILES
3,000 Hermes International............. 334,848
10,000 Sylea............................ 852,878
-------------
1,187,726
-------------
TEXTILES - APPAREL MANUFACTURERS
6,600 Deveaux S.A...................... 777,046
-------------
TOTAL FRANCE..................... 6,457,736
-------------
GERMANY (7.5%)
AEROSPACE & DEFENSE
2,000 Moebel Walther AG (Preferred).... 896,775
-------------
BUILDING MATERIALS
1,607 Sto AG (Preferred)............... 904,532
-------------

<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
BUSINESS SERVICES
1,300 Marschollek Laut Und............. $ 659,798
-------------
MACHINE TOOLS
1,898 Doities Scharmann AG............. 241,430
-------------
MACHINERY - DIVERSIFIED
3,800 Jungheinrich (Preferred)......... 816,892
-------------
MANUFACTURING
2,100 Hach AG (Preferred).............. 983,019
565 Hornbach Holding AG (Preferred).. 506,678
-------------
1,489,697
-------------
MULTI - INDUSTRY
4,000 Draegerwerk AG (Preferred)....... 781,021
595 Hugo Boss AG (Preferred)......... 365,182
-------------
1,146,203
-------------
TEXTILES
460 Adolf Ahlers AG.................. 105,323
3,100 Stohr & Co. AG................... 486,994
-------------
592,317
-------------
TEXTILES - APPAREL MANUFACTURERS
2,140 Puma AG (Preferred).............. 409,408
-------------
TOTAL GERMANY.................... 7,157,052
-------------

HONG KONG (1.9%)
AEROSPACE & DEFENSE
40,000 Hong Kong Aircraft Engineering... 136,033
-------------
ELECTRONICS
650,000 Gold Peak Industries............. 264,761
1,000,000 Techtronic Industries Co......... 122,844
-------------
387,605
-------------
HOTELS / MOTELS
200,000 Grand Hotel Holdings (Series A).. 74,999
-------------
LEISURE
1,050,000 Regal Hotels International....... 224,028
-------------
MACHINERY - DIVERSIFIED
300,000 Chen Hsong Holdings.............. 188,145
-------------
MULTI - INDUSTRY
372,000 TVE Holdings..................... 168,361
-------------
TEXTILES
150,000 Winsor Industrial................ 192,994
-------------
TRANSPORTATION - MISCELLANEOUS
228,000 Kowloon Motor Bus................ 406,859
-------------
TOTAL HONG KONG.................. 1,779,024
-------------

INDONESIA (1.6%)
CHEMICALS
120,000 PT Aneka Kimia Raya.............. 302,982
-------------
DISTRIBUTION
100,000 Wicaksana Overseas
International.................. 247,894
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
142,000 Fast Food Indonesia.............. 247,710
-------------
</TABLE>
<PAGE>

DEAN WITTER INTERNATIONAL SMALLCAP FUND
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
PHARMACEUTICALS
100,000 PT Enseval Putera Megatrading.... $ 390,204
60,000 Tempo Scan Pacific............... 302,982
-------------
693,186
-------------
TOTAL INDONESIA.................. 1,491,772
-------------
ITALY (1.7%)
ELECTRICAL & ELECTRONICS
54,000 Gewiss........................... 744,091
-------------
INSURANCE
135,000 Unipol........................... 625,637
-------------
TEXTILES - APPAREL MANUFACTURERS
80,000 Stefanel SPA..................... 211,326
-------------
TOTAL ITALY...................... 1,581,054
-------------
JAPAN (41.2%)
BUILDING & CONSTRUCTION
26,400 C Cube Corp...................... 254,384
11,000 Gantan Beauty Industry........... 221,976
20,500 Higashi Nihon House.............. 465,392
10,000 Hosoda Corp...................... 154,374
30,000 Kaneshita Construction........... 408,637
18,000 Sankyo Frontier Co., Ltd......... 622,944
30,000 Suido Kiko Kaisha................ 387,448
25,000 Takada Corp...................... 158,914
22,000 Takashimaya Kosakusho Co......... 201,776
35,000 Tohoku Misawa Homes Co........... 409,646
15,000 Tone Geo Technology Co., Ltd..... 567,551
8,000 Yokogawa Construction Co......... 164,666
-------------
4,017,708
-------------
BUILDING MATERIALS
10,000 Maezawa Kaisei Industries Co..... 625,568
-------------
BUSINESS SERVICES
30,000 Ichiken Co., Ltd................. 466,149
12,000 Nippon Kanzai Co................. 665,927
29,000 Tanseisha Co..................... 400,868
-------------
1,532,944
-------------
CHEMICALS
21,000 Shinto Paint Co.................. 326,304
10,000 Sk Kaken Co., Ltd................ 404,601
-------------
730,905
-------------
COMPUTER SERVICES
20,000 Catena Corp...................... 403,592
15,000 Japan Digital Laboratory Co.,
Ltd............................ 414,691
30,000 Meitec Corp...................... 535,768
20,000 Nippon Computer System Co........ 232,065
11,000 TKC Corp......................... 349,612
-------------
1,935,728
-------------
COMPUTER SOFTWARE
14,000 Enix Corp........................ 382,807
5,500 Tecmo............................ 63,818
-------------
446,625
-------------
COMPUTERS - SYSTEMS
20,000 Daiwabo Information Systems Co... 534,759
-------------
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
DISTRIBUTION
15,000 Misumi Corp...................... $ 575,119
27,000 Trusco Nakayama Corp............. 615,680
-------------
1,190,799
-------------
ELECTRICAL EQUIPMENT
13,000 Uniden Corp...................... 327,918
-------------
ELECTRONICS
20,000 Katsuragawa Electric Co.......... 413,682
15,000 Nihon Dempa Kogyo................ 487,337
15,000 Sanshin Corp..................... 195,238
-------------
1,096,257
-------------
ENGINEERING & CONSTRUCTION
19,000 Meiden Engineering Co............ 316,315
-------------
FINANCIAL SERVICES
11,000 Nissin Co., Ltd.................. 821,310
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
13,000 Beltecno Corp.................... 301,685
25,000 Sanyo Coca Cola Bottling......... 363,233
25,000 Stamina Foods, Inc............... 353,143
10,000 Yonkyu Co., Ltd.................. 384,421
17,000 Yukiguni Maitake Co., Ltd........ 550,600
-------------
1,953,082
-------------
HEALTH & PERSONAL CARE
22,000 Hitachi Medical Corp............. 377,358
10,000 Maruco Co., Ltd.................. 656,846
-------------
1,034,204
-------------
MACHINERY
44,200 Comson Corp...................... 624,357
2,000 DMW Corp......................... 268,389
20,000 Fuji Machine Manufacturing....... 619,514
24,000 Fuso Lexel, Inc.................. 254,263
48,000 Maeda Metal Industries........... 224,236
13,000 Sankyo Engineering............... 380,385
25,000 Sansei Yusoki Co., Ltd........... 431,339
-------------
2,802,483
-------------
MANUFACTURING
25,000 Bridgestone Metalpha Corp........ 469,176
25,000 Nichiha Corp..................... 459,086
60,000 Nippon Thompson Co............... 408,637
18,000 Noritz Corp...................... 341,439
18,700 Rinnai Corp...................... 411,321
45,000 Sodick Co........................ 382,757
50,000 Takada Kiko Steel................ 459,086
10,000 Y.A.C., Ltd...................... 590,253
-------------
3,521,755
-------------
MULTI - INDUSTRY
20,000 Yamae Hisano Co.................. 296,640
-------------
PHARMACEUTICALS
25,000 Kawasumi Laboratories, Inc....... 592,776
20,000 Santen Pharmaceutical Co......... 536,777
15,000 Seikagaku Corp................... 612,955
7,000 Towa Pharmaceutical Co., Ltd..... 529,714
-------------
2,272,222
-------------
PHOTOGRAPHY
35,000 Fuji PS Corp..................... 459,086
-------------
</TABLE>
<PAGE>

DEAN WITTER INTERNATIONAL SMALLCAP FUND
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
REAL ESTATE
20,000 Chubu Sekiwa Real Estate......... $ 262,335
24,000 Kansai Sekiwa Real Estate........ 375,341
50,000 Sekiwa Real Estate............... 486,833
-------------
1,124,509
-------------
RESTAURANTS
14,000 Aiya Co., Ltd.................... 320,654
7,000 Plenus Co., Ltd.................. 478,156
33,000 Steak Miya Co.................... 459,489
240 Yoshinoya D & C Co., Ltd......... 261,528
-------------
1,519,827
-------------
RETAIL
20,000 Arcland Sakamoto................. 462,113
10,000 Dai-Ichi Clinical Laboratories... 479,265
4,000 Fast Retailing Co., Ltd.......... 439,915
25,000 Izumi Co., Ltd................... 643,225
24,000 Kojitu Co., Ltd.................. 326,909
15,000 Nissen Co., Ltd.................. 508,526
35,000 Olympic Sports Co., Ltd.......... 536,777
24,000 Sumiya Co........................ 406,821
-------------
3,803,551
-------------
RETAIL - DRUG STORES
7,000 Sundrug Co., Ltd................. 487,337
-------------
RETAIL STORES
12,000 Belluna Co., Ltd................. 478,256
17,000 Home Wide Corp................... 325,901
50,000 Juntendo Co...................... 469,176
9,000 Kahma Co., Ltd................... 254,263
27,000 Kuroganeya Co.................... 490,364
20,000 Ministop Co., Ltd................ 569,065
16,000 Mr. Max Corp..................... 382,605
10,000 Nitori Co........................ 383,412
20,000 Shimachu Co., Ltd................ 629,603
8,000 Tsutsumi Jewelry................. 735,345
21,000 Xebio Co......................... 752,195
-------------
5,470,185
-------------
TEXTILES - APPAREL MANUFACTURERS
11,000 Yagi Corp........................ 241,953
-------------
TRANSPORTATION
7,000 Kanto Seino Transportation....... 300,172
-------------
TRANSPORTATION - MISCELLANEOUS
25,000 Chuo Warehouse Co................ 380,890
-------------
TOTAL JAPAN...................... 39,244,732
-------------
MALAYSIA (2.3%)
AUTOMOTIVE
30,000 Cycle & Carriage Bintang Berhad.. 106,146
-------------
BANKS - COMMERCIAL
100,000 Hock Hua Bank Berhad............. 295,176
-------------
BUILDING & CONSTRUCTION
60,000 Muhibbah Engineering Berhad...... 241,614
40,000 Road Builder Berhad.............. 228,321
-------------
469,935
-------------
BUILDING MATERIALS
30,000 C.I. Holdings Berhad............. 116,702
-------------
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
FINANCIAL SERVICES
73,333 Arab Malaysian Finance Berhad.... $ 174,889
73,333 Arab Malaysian Finance Berhad
(Rights)*...................... 28,670
50,000 Public Finance Berhad............ 87,184
-------------
290,743
-------------
MANUFACTURING
40,000 George Kent Berhad............... 92,267
-------------
MANUFACTURING - DIVERSIFIED INDUSTRIES
50,000 Th Loy Industries Berhad......... 168,113
-------------
MULTI - INDUSTRY
44,000 Lityan Holdings Berhad........... 122,996
-------------
OIL RELATED
50,000 Projek Penyelenggaraan........... 166,158
-------------
REAL ESTATE
30,000 Lam Soon Huat Development
Berhad......................... 113,770
200,000 Tan & Tan Developments Berhad.... 292,439
-------------
406,209
-------------
TOTAL MALAYSIA................... 2,234,445
-------------

MEXICO (1.9%)
BANKS - COMMERCIAL
25,000 Grupo Financiero Gbm Atlantico
S.A. (GDS)..................... 459,500
-------------
HOUSEHOLD PRODUCTS
25,000 Grupo Industries Saltillo (Class
A)............................. 483,636
-------------
METALS & MINING
90,000 Tubos De Acero de Mexico (ADR)... 444,420
-------------
TRANSPORTATION
60,000 Transportacion Maritima Mexicana
(ADR).......................... 442,500
-------------
TOTAL MEXICO..................... 1,830,056
-------------

NETHERLANDS (2.7%)
BUSINESS SERVICES
21,600 Randstad Holdings Dutch.......... 1,087,178
-------------
ELECTRONICS
1,469 Otra NV.......................... 242,010
-------------
PHARMACEUTICALS
9,540 OPG Apotheker Coop UA............ 235,750
-------------
TRANSPORTATION
42,000 IHC Caland NV.................... 990,172
-------------
TOTAL NETHERLANDS................ 2,555,110
-------------

NEW ZEALAND (0.5%)
CHEMICALS
150,000 Fernz Corp., Ltd................. 480,038
-------------

NORWAY (1.9%)
BUSINESS SERVICES
20,000 Unitor AS........................ 312,797
-------------
ENERGY TECHNOLOGY & EQUIPMENT
150,000 Tomra Systems AS................. 344,223
-------------
</TABLE>
<PAGE>

SINGAPORE (1.7%)
BUILDING MATERIALS
80,000 Ssangyong Cement, Ltd............ 259,140
-------------
COMMERCIAL SERVICES
20,000 Informatics Holdings, Ltd........ 15,308
-------------
ELECTRIC EQUIPMENT
500,000 Flextech Holdings, Ltd........... 205,016
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
30,000 Yeo Hiap Seng.................... 78,316
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
150,000 Courts, Ltd...................... 215,267
200,000 Hwa Tat Lee Holdings, Ltd........ 129,160
-------------
344,427
-------------
INDUSTRIALS
150,000 Singapore Shipbuilding &
Engineering.................... 350,577
-------------
SHIPBUILDING
50,000 Jurong Engineering, Ltd.......... 326,317
-------------
TOTAL SINGAPORE.................. 1,579,101
-------------
SPAIN (2.0%)
ELECTRONICS
10,000 Electricas Reunidas de Zaragoza.. 219,546
-------------
FINANCIAL SERVICES
13,000 Banco Pastor S.A................. 577,756
-------------
PAPER & FOREST PRODUCTS
20,900 Empresa Nacional de Celulosas
S.A............................ 510,630
-------------
RETAIL
21,000 Cortefiel S.A.................... 624,333
-------------
TOTAL SPAIN...................... 1,932,265
-------------

SWEDEN (1.4%)
PHARMACEUTICALS
18,000 Elekta Instrument (Series B)..... 376,514
-------------
STEEL
13,200 Ssab (Series A).................. 581,055
-------------
TELECOMMUNICATIONS
40,000 Nordic Tel Holdings (Series "AB"
Free).......................... 418,349
-------------
TOTAL SWEDEN..................... 1,375,918
-------------
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>

SWITZERLAND (2.3%)
BUILDING MATERIALS
624 Sarna Kunstoff Holdings AG....... $ 717,026
-------------
ELECTRIC EQUIPMENT
2,000 Swisslog Holdings AG............. 473,151
-------------
PUBLISHING
1,200 Edipresse S.A.................... 477,657
-------------
TRANSPORTATION
500 Danzas Holding AG................ 491,926
-------------
TOTAL SWITZERLAND................ 2,159,760
-------------

THAILAND (1.0%)
AUTOMOTIVE
24,000 Swedish Motor Corp............... 144,659
-------------
ELECTRONICS
30,000 KCE Electronics.................. 131,726
15,000 Muramoto Electronic.............. 108,375
-------------
240,101
-------------
HOUSEHOLD PRODUCTS
40,000 Srithai Superware Co., Ltd....... 242,695
-------------
INDUSTRIALS
10,000 Thai Glass Industries............ 41,913
20,000 Thai Glass Industries (Rights)*.. 75,842
-------------
117,755
-------------
MANUFACTURING
150,000 Pan Asia Footwear Co............. 149,689
-------------
PUBLISHING
10,000 Matichon Co...................... 59,875
-------------
TOTAL THAILAND................... 954,774
-------------

UNITED KINGDOM (10.0%)
ADVERTISING
300,000 Shandwick PLC.................... 203,867
-------------
AUTO PARTS - ORIGINAL EQUIPMENT
32,000 BBA Group........................ 100,481
16,000 Laird Group PLC.................. 84,984
-------------
185,465
-------------
AUTOMOTIVE
71,713 T&N PLC.......................... 184,850
-------------
BIOTECHNOLOGY
3,000 Amersham International........... 41,008
-------------
BUILDING & CONSTRUCTION
75,000 Barratt Developments............. 201,524
100,000 Havelock Europa PLC.............. 270,261
115,000 Taylor Woodrow PLC............... 208,397
-------------
680,182
-------------
BUILDING MATERIALS
25,000 Hepworth PLC..................... 120,289
65,000 Ibstock PLC...................... 78,188
65,000 Lilleshall....................... 142,160
40,000 Rugby Group PLC.................. 74,986
61,500 Sheffield Insulations Group...... 251,717
-------------
667,340
-------------
</TABLE>
<PAGE>

DEAN WITTER INTERNATIONAL SMALLCAP FUND
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
CHEMICALS
40,000 Wardle Storeys PLC............... $ 210,585
-------------
COMPUTER SERVICES
170,000 ISA International PLC............ 286,820
-------------
CONTAINERS
100,000 Parkside International........... 146,847
-------------
CONTAINERS - PAPER
7,200 Smith (David) Holdings PLC....... 59,389
-------------
ELECTRONICS
16,000 Diploma PLC...................... 104,980
-------------
FOOD PROCESSING
35,000 Booker PLC....................... 224,176
15,000 Devro International PLC.......... 52,724
89,000 Hillsdown Holdings PLC........... 226,628
-------------
503,528
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
60,000 Boddington Group................. 239,954
16,000 Dalgety PLC...................... 105,480
-------------
345,434
-------------
HEALTH & PERSONAL CARE
35,000 Community Hospitals Group........ 132,318
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
55,000 MFI Furniture PLC................ 115,993
157,000 Walker Breenbank PLC............. 252,623
-------------
368,616
-------------
INSURANCE
10,000 Domestic & General Group......... 255,420
-------------
LEISURE
100,000 David Lloyd Leisure PLC.......... 406,172
-------------
MACHINERY - DIVERSIFIED
50,000 Crabtree PLC..................... 214,803
155,000 Metalrax Group PLC............... 249,405
15,000 Spirax-Sarco Engineering......... 107,792
-------------
572,000
-------------
MANUFACTURING
75,000 Bluebird Toys PLC................ 275,338
49,000 IMI PLC.......................... 243,422
83,000 Protean PLC...................... 269,698
-------------
788,458
-------------
MANUFACTURING - DIVERSIFIED INDUSTRIES
87,000 FKI Babcock PLC.................. 217,458
-------------
METALS & MINING
22,000 Glynwed International PLC........ 118,227
-------------
MISCELLANEOUS
80,000 Christies International.......... 203,711
-------------
MULTI - INDUSTRY
125,000 Trafalgar House PLC.............. 154,267
-------------
OIL RELATED
20,000 Charter PLC...................... 235,892
-------------
PUBLISHING
4,800 Daily Mail & General............. 72,736
-------------
<CAPTION>
SHARES VALUE
- ------------- -------------
<C> <S> <C>
REAL ESTATE
70,000 Bradford Properties Trust........ $ 205,586
18,000 Great Portland Estates........... 47,803
40,000 Helical Bar PLC.................. 198,712
-------------
452,101
-------------
RESTAURANTS
250,000 City Centre Restaurants.......... 304,629
11,000 Compass Group PLC................ 57,567
-------------
362,196
-------------
RETAIL
100,000 Goldsmiths Group................. 207,773
22,000 Morrison Supermarkets............ 45,710
20,000 Pendragon........................ 80,610
30,000 Smith (W.H.) & Son (Class A)..... 209,491
-------------
543,584
-------------
RETAIL - MAIL ORDER / GENERAL MERCHANDISING
22,000 Argos PLC........................ 118,227
-------------
TELECOMMUNICATIONS
7,500 Security Services PLC............ 89,045
-------------
TEXTILES
37,500 Courtaulds Textiles.............. 260,690
-------------
TRANSPORTATION
30,000 Associated British Ports......... 130,756
90,000 GRT Business Group PLC........... 326,187
-------------
456,943
-------------
TRANSPORTATION - MISCELLANEOUS
8,000 Tibbett & Britten Group.......... 88,480
-------------
TOTAL UNITED KINGDOM............. 9,516,836
-------------
TOTAL COMMON AND PREFERRED STOCKS
AND RIGHTS (IDENTIFIED COST
$98,726,376)................... 89,310,780
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN
THOUSANDS)
- -------------
<C> <S> <C>
SHORT-TERM INVESTMENT(A) (6.3%)
U.S. GOVERNMENT AGENCY
US$ 6,050 Federal Home Loan Bank (Amortized
Cost $6,050,000) 6,050,000
-------------

<CAPTION>
CURRENCY
AMOUNT EXPIRATION
(IN DATE/EXERCISE
THOUSANDS) PRICE
- ------------- ---------------------------------
<C> <S> <C>
PURCHASED CALL OPTIONS ON FOREIGN CURRENCY
(0.8%)
Y 2,923,500 May 4, 1995/Y97.45............... 753,000
Y 298,200 December 9, 1994/Y99.40.......... 6,600
-------------
TOTAL PURCHASED CALL OPTIONS ON
FOREIGN CURRENCY (IDENTIFIED
COST $686,250)................. 759,600
-------------
</TABLE>
<PAGE>

DEAN WITTER INTERNATIONAL SMALLCAP FUND
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
-------------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $105,462,626) (B)......... 100.9% $ 96,120,380
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS................... (0.9) (829,191)
---------- ------------

NET ASSETS....................... 100.0% $ 95,291,189
---------- ------------
---------- ------------

<FN>
- ------------------
* NON-INCOME PRODUCING SECURITY.
ADR AMERICAN DEPOSITORY RECEIPT.
GDS GLOBAL DEPOSITORY SHARES.
(A) THE U.S. GOVERNMENT AGENCY WAS PURCHASED ON A DISCOUNT BASIS. THE INTEREST
RATE SHOWN HAS BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $105,462,626; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $1,707,152 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $11,049,398, RESULTING IN NET UNREALIZED
DEPRECIATION OF $9,342,246.
</TABLE>

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT NOVEMBER 30, 1994:

<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION/
TO RECEIVE FOR DATE (DEPRECIATION)
- ------------ ------------- --------- -------------
<S> <C> <C> <C>
L 459,459 US$ 720,845 12/ 1/94 $ (3,078)
L 123,412 US$ 193,849 12/ 1/94 (1,055)
L 373,286 US$ 583,297 12/ 2/94 (150)
L 82,663 US$ 129,418 12/ 6/94 (281)
L 102,480 US$ 160,171 12/ 9/94 (77)
US$ 312,064 DEM 488,130 12/ 2/94 1,068
-------------
Net unrealized
depreciation*........... $ (3,573)
-------------
-------------
</TABLE>

- ------------------
*Includes aggregate gross unrealized appreciation of $1,068 and aggregate gross
unrealized depreciation of $4,641, resulting in net unrealized depreciation of
$3,573.

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION NOVEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------- -------------- ------------
<S> <C> <C>
Advertising................ $ 203,867 0.2%
Aerospace & Defense........ 1,032,808 1.1
Automotive................. 879,655 0.9
Auto Parts - Original
Equipment................. 185,465 0.2
Banks - Commercial......... 754,676 0.8
Biotechnology.............. 41,008 0.0
Building & Construction.... 5,468,685 5.7
Building Materials......... 3,290,308 3.5
Business Services.......... 3,592,717 3.8
Chemicals.................. 1,724,509 1.8
Commercial Services........ 15,308 0.0
Computer Services.......... 2,222,548 2.3
Computer Software.......... 446,625 0.5
Computers - Systems........ 534,759 0.6
Containers................. 146,847 0.2
Containers - Paper......... 59,389 0.1
Currency Options........... 759,600 0.8
Distribution............... 1,438,692 1.5
Electric Equipment......... 1,006,085 1.0
Electronics................ 3,480,063 3.7
Energy Technology &
Equipment................. 344,223 0.4
Engineering &
Construction.............. 316,315 0.3
Financial Services......... 2,698,801 2.8
Food, Beverage, Tobacco &
Household Products........ 5,177,206 5.4
Food Processing............ 503,528 0.5
Health & Personal Care..... 1,166,522 1.2

<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- --------------------------- -------------- ------------
<S> <C> <C>
Hotels/Motels.............. $ 74,999 0.1%
Household Furnishings &
Appliances................ 1,439,376 1.5
Industrials................ 468,333 0.5
Insurance.................. 1,523,497 1.6
Leisure.................... 630,200 0.7
Machinery.................. 3,043,912 3.2
Machinery - Diversified.... 2,448,438 2.6
Manufacturing.............. 6,895,226 7.2
Metals & Mining............ 909,174 0.9
Miscellaneous.............. 894,349 0.9
Multi-Industry............. 1,888,467 2.0
Oil Related................ 782,084 0.8
Paper & Forest Products.... 510,630 0.5
Pharmaceuticals............ 3,577,672 3.8
Photography................ 1,424,322 1.6
Publishing................. 610,268 0.6
Real Estate................ 1,982,817 2.2
Restaurants................ 1,882,023 2.0
Retail..................... 5,089,695 5.3
Retail Drug Stores......... 487,337 0.5
Retail Stores.............. 5,470,185 5.7
Shipbuilding............... 326,317 0.3
Steel...................... 581,055 0.6
Telecommunications......... 1,142,531 1.2
Textiles................... 3,873,463 4.1
Transportation............. 4,623,801 4.9
U.S. Government Agency..... 6,050,000 6.3
-------------- ------
$ 96,120,380 100.9%
-------------- ------
-------------- ------
</TABLE>

SUMMARY OF INVESTMENTS BY TYPE NOVEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- ------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks....................................................................... $ 83,542,761 87.7%
Call Options........................................................................ 759,600 0.8
Preferred Stocks.................................................................... 5,663,507 6.0
Rights.............................................................................. 104,512 0.1
U.S. Government Agency.............................................................. 6,050,000 6.3
-------------- ------
$ 96,120,380 100.9%
-------------- ------
-------------- ------
</TABLE>
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1994 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $105,462,626) (Note
1)...................................... $ 96,120,380
Cash (including $259,159 in foreign
currency)............................... 303,456
Receivable for:
Investments sold (Note 4)............... 926,680
Shares of beneficial interest sold...... 608,335
Dividends............................... 59,408
Foreign withholding taxes reclaimed..... 5,161
Interest................................ 572
Deferred organizational expenses (Note
1)...................................... 149,135
-------------
TOTAL ASSETS...................... 98,173,127
-------------
LIABILITIES:
Payable for:
Investments purchased................... 2,382,258
Investment management fees (Note 2)..... 100,589
Plan of distribution fee (Note 3)....... 80,564
Shares of beneficial interest
repurchased........................... 56,178
Accrued expenses (Note 4)................. 102,349
Organizational expenses (Note 1).......... 160,000
-------------
TOTAL LIABILITIES................. 2,881,938
-------------
NET ASSETS:
Paid-in-capital........................... 106,331,854
Net unrealized depreciation............... (9,340,537)
Net investment loss....................... (378,470)
Net realized loss......................... (1,321,658)
-------------
NET ASSETS........................ $ 95,291,189
-------------
-------------
NET ASSET VALUE PER SHARE, 10,682,694
shares outstanding (unlimited shares
authorized of $.01 par value)...........
$8.92
-------------
-------------
</TABLE>

STATEMENT OF OPERATIONS FOR THE PERIOD JULY 29,
1994 THROUGH NOVEMBER 30, 1994 (UNAUDITED) (NOTE 1)

<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Interest.............................. $ 286,718
Dividends (net of $25,810 foreign
withholding tax).................... 219,448
-------------
TOTAL INCOME...................... 506,166
-------------
EXPENSES
Investment management fees (Note 2)... 393,915
Plan of distribution fee (Note 3)..... 315,225
Transfer agent fees and expenses (Note
4).................................. 43,400
Custodian fees........................ 35,598
Professional fees..................... 32,860
Registration fees..................... 31,243
Shareholder reports and notices....... 13,640
Organizational expenses (Note 1)...... 10,865
Trustees' fees and expenses........... 7,068
Other................................. 822
-------------
TOTAL EXPENSES.................... 884,636
-------------
NET INVESTMENT LOSS............. (378,470)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
(Note 1):
Net realized loss on:
Investments......................... (1,245,089)
Foreign exchange transactions....... (76,569)
-------------
(1,321,658)
-------------
Net unrealized
appreciation/depreciation on:
Investments......................... (9,342,246)
Translation of other assets and
liabilities denominated in foreign
currencies........................ 1,709
-------------
(9,340,537)
-------------
NET LOSS.......................... (10,662,195)
-------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $ (11,040,665)
-------------
-------------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 29,1994 THROUGH
NOVEMBER 30, 1994
(UNAUDITED) (NOTE 1)
--------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss..................................................................... $ (378,470)
Net realized loss....................................................................... (1,321,658)
Net unrealized depreciation............................................................. (9,340,537)
--------------------
Net decrease in net assets resulting from operations................................ (11,040,665)
Net increase from transactions in shares of beneficial interest (Note 5).................. 106,231,854
--------------------
Total increase...................................................................... 95,191,189
NET ASSETS:
Beginning of period....................................................................... 100,000
--------------------
END OF PERIOD (including net investment loss of $378,470)................................. $ 95,291,189
--------------------
--------------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter International SmallCap
Fund (the "Fund") is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a non-diversified, open-end management investment
company. The Fund was organized as a Massachusetts business trust on April 21,
1994 and had no operations other than those relating to organizational matters
and the issuance of 10,000 shares of beneficial interest for $100,000 to Dean
Witter InterCapital Inc. (the "Investment Manager"). The Fund commenced
operations on July 29, 1994.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on
the New York or American Stock Exchange or other domestic or foreign stock
exchanges is valued at its latest sale price on that exchange prior to the
time when assets are valued; if there were no sales that day, the security
is valued at the latest bid price (in cases where securities are traded on
more than one exchange; the securities are valued on the exchange designated
as the primary market by the Trustees); (2) all other portfolio securities
for which over-the-counter market quotations are readily available are
valued at the latest available bid price prior to the time of valuation; (3)
when market quotations are not readily available, including circumstances
under which it is determined by the Investment Manager that sale and bid
prices are not reflective of a security's market value, portfolio securities
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Trustees; (4)
certain of the Fund's portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service utilizes a
matrix system incorporating security quality, maturity and coupon as the
evaluation model parameters, and/or research and evaluations by its staff,
including review of broker-dealer market price quotations, in determining
what it believes is the fair valuation of the portfolio 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 on the identified cost
method. Dividend income and other distributions are recorded on the
ex-dividend date except certain dividends from foreign securities which are
recorded as soon as the Fund is informed after the ex-dividend date.
Interest income is accrued daily and includes amortization of discounts of
certain short-term securities.

C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward contracts
are translated at the exchange rates prevailing at the end of the period;
and (2) purchases, sales, income and expenses are translated at the exchange
rates prevailing on the respective dates of such transactions. The resultant
exchange gains and losses are included in the Statement of Operations as
realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange
gains/losses included in realized and unrealized gain/loss are included in
or are a reduction of ordinary income for federal income tax purposes. The
Fund does not isolate that portion of the
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
results of operations arising as a result of changes in the foreign exchange
rates from the changes in the market prices of the securities.

D. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign
exchange rates. Forward contracts are valued daily at the appropriate
exchange rates. The resultant exchange gains and losses are included in the
Statement of Operations as unrealized gain/loss on foreign exchange
transactions. The Fund records realized gains or losses on delivery of the
currency or at the time the contract is extinguished (compensated) by
entering into a closing transaction prior to delivery.

E. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records
dividends and distributions to its shareholders on the record date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.

G. ORGANIZATIONAL EXPENSES -- The Investment Manager paid the
organizational expenses of the Fund in the amount of approximately $160,000.
The Fund will reimburse the Investment Manager for the full amount thereof.
Such expenses have been deferred and are being amortized by the Fund on the
straight-line method over a period not to exceed five years from the
commencement of operations.

2. INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS -- Pursuant to an Investment
Management Agreement, the Fund pays its Investment Manager a management fee,
calculated daily and payable monthly, by applying the annual rate of 1.25% to
the net assets of the Fund determined as of the close of each business day.

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

Under a Sub-Advisory Agreement between Morgan Grenfell Investment Services
Limited (the "Sub-Advisor") and the Investment Manager, the Sub-Advisor provides
the Fund with investment advice and
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
portfolio management relating to the Fund's investments in securities, subject
to the overall supervision of the Investment Manager. As compensation for its
services provided pursuant to the Sub-Advisory Agreement, the Investment Manager
pays the Sub-Advisor monthly compensation equal to 40% of its monthly
compensation.

3. PLAN OF DISTRIBUTION -- Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager.
The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act, pursuant to which the Fund pays the Distributor compensation,
accrued daily and payable monthly, at an annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
Fund's inception (not including reinvestment of dividend or capital gain
distributions) less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services provided and the expenses borne by
it and others in the distribution of the Fund's shares, including the payment of
commissions for sales of the Fund's shares and incentive compensation to, and
expenses of, the account executives of Dean Witter Reynolds Inc., an affiliate
of the Investment Manager and Distributor, and other employees or selected
dealers who engage in or support distribution of the Fund's shares or who
service shareholder accounts, including overhead and telephone expenses,
printing and distribution of prospectuses and reports used in connection with
the offering of the Fund's shares to other than current shareholders and
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may be compensated under the Plan for
its opportunity costs in advancing such amounts which compensation would be in
the form of a carrying charge on any unreimbursed expenses incurred by the
Distributor.

Provided that the Plan continues in effect, any cumulative expenses incurred
but not yet recovered by the Distributor, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.

The Distributor has informed the Fund that for the period ended November 30,
1994, it received approximately $44,000 in contingent deferred sales charges
from redemptions of the Fund's shares. The Fund's shareholders pay such charges
which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and proceeds from sales of portfolio securities, excluding short-term
investments, for the period ended November 30, 1994 aggregated $104,205,258 and
$4,785,709, respectively.

For the period ended November 30, 1994, the Fund incurred brokerage
commissions of $24,794 with affiliates of Morgan Grenfell Investment Services
Limited for portfolio transactions executed on behalf of the Fund. At November
30, 1994, the Fund's receivable for investments purchased included unsettled
trades with affiliates of Morgan Grenfell Investment Services Limited of
$46,357.

Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At September 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $14,000.
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 29, 1994*
THROUGH NOVEMBER 30, 1994
-------------------------------
SHARES AMOUNT
------------- ----------------
<S> <C> <C>
Sold............................................................................. 11,028,586 $ 109,641,332
Repurchased...................................................................... (355,892) (3,409,478)
------------- ----------------
Net increase..................................................................... 10,672,694 $ 106,231,854
------------- ----------------
------------- ----------------
<FN>
- --------------
* COMMENCEMENT OF OPERATIONS.
</TABLE>

6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK -- As of November 30, 1994,
the Fund had outstanding forward foreign currency contracts ("forward
contracts") as a hedge against changes in foreign exchange rates. Forward
contracts involve elements of market risk in excess of the amount reflected in
the Statement of Assets and Liabilities. The Fund bears the risk of an
unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
<PAGE>
DEAN WITTER INTERNATIONAL SMALLCAP FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Selected ratios and per share data for a share of beneficial interest
outstanding through the period:

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 29, 1994*
THROUGH
NOVEMBER 30, 1994
(UNAUDITED)
------------------
<S> <C>
Per Share Operating Performance:
Net asset value, beginning of period......... $10.00
-------
Net investment loss.......................... (0.04)
Net realized and unrealized loss on
investments................................. (1.04)
-------
Total from investment operations............. (1.08)
-------
Net asset value, end of period............... $ 8.92
-------
-------
Total Investment Return+..................... (10.80)%(1)
Ratios/Supplemental Data:
Net assets, end of period (in thousands)..... 95,291
Ratios to average net assets:
Expenses................................... 2.81%(2)
Net investment loss........................ (1.20)%(2)
Portfolio turnover rate...................... 7%(1)
<FN>
- --------------
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
* COMMENCEMENT OF OPERATIONS.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>

TRUSTEES

Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Sheldon Curtis
Vice President, Secretary and General Counsel

Thomas F. Caloia
Treasurer

TRANSFER AGENT

Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS

Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER

Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISOR

Morgan Grenfell Investment Services Limited

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 directors,
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.

DEAN WITTER INTERNATIONAL SMALLCAP FUND

[PHOTO]

SEMIANNUAL REPORT
NOVEMBER 30, 1994