DEAN WITTER GLOBAL ASSET ALLOCATION FUND, N-30D, 1997-10-06

DEAN WITTER GLOBAL ASSET ALLOCATION FUND
N-30D, 1997-10-06

Previous: ERP OPERATING LTD PARTNERSHIP, 424B5, 1997-10-06

Next: PUTNAM INVESTMENT FUNDS, N-30D, 1997-10-06

<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND TWO WORLD TRADE CENTER, NEW YORK, NEW
YORK 10048
LETTER TO THE SHAREHOLDERS JULY 31, 1997

DEAR SHAREHOLDER:

During the first six months of fiscal 1997, global stocks and bonds in general
continued to appreciate in value while cash equivalents lagged. The continuation
of a multiyear period of gradual global economic growth, low inflation,
corporate profitability and vigilant central bank policies around the world
provided markets with a positive backdrop for strong returns. Equity markets,
led by those in the United States, rallied sharply. A modest recovery in Japan
also contributed to a favorable worldwide investment environment. Although the
Japanese markets were volatile, they staged a rally in June as fears of higher
interest rates faded and sentiment for a self-sustaining economic recovery
rebounded. Elsewhere in Asia, the Hong Kong markets rallied on the heels of the
takeover by China on July 1. However, other Asian markets proved disappointing,
as slowing economic growth and currency concerns cooled investors' fervor in
Thailand, Malaysia and other Pacific Rim countries. In Latin America, a strong
recovery in Mexico and other countries made this region a top global performer.

PERFORMANCE AND PORTFOLIO

As of July 28, 1997, the Fund began offering four classes of shares: A, B, C and
D, each with its own sales charge and distribution fee structure. Fund shares
held prior to July 28 were designated Class B shares. A revised prospectus,
which includes complete details regarding the Fund's conversion to multiple
classes of shares, was mailed to shareholders in mid-summer.

Dean Witter Global Asset Allocation Fund's Class B shares posted a total return
of 11.74 percent for the six-month period ended July 31, 1997, versus 18.43
percent for the Morgan Stanley Capital International World Index and 11.38
percent for the Lipper Global Flexible Portfolio Funds Index. Since inception
(February 28, 1995), the Fund has provided a total return of 44.77 percent
(16.52 percent annualized) versus 52.37 percent (19.04 percent annualized) for
the Lipper Global Flexible Portfolio Funds Index.

The Fund's recent underperformance versus its peer group benchmark can be
attributed to the Fund's regional allocations. For example, our being
overweighted in Japan and underweighted in the United States negatively affected
returns, since the performance disparity between
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
LETTER TO THE SHAREHOLDERS JULY 31, 1997, CONTINUED

these two markets was quite wide. Also, our conservative asset allocation (70
percent equities, 17 percent fixed income and 13 percent money markets) somewhat
limited the Fund's return. However, our cash and bond cushion served to lower
the Fund's overall volatility.

Both the equity and fixed-income portions of the portfolio are extensively
diversified throughout global markets. The equity portfolio's allocation
features holdings in Europe (30 percent of total equity assets), Japan (25
percent), the United States (24 percent), the Pacific Rim (15 percent), Latin
America (5 percent) and other countries (1 percent).

The bond portfolio is invested in both United States (58 percent of fixed-income
assets) and European debt instruments (42 percent) and is comprised of both
government and corporate bonds. U.S. Treasury and corporate issues now represent
over half of our total fixed-income investments, with the balance being held in
German, Danish, British and Italian government bonds.

LOOKING AHEAD

We view the outlook for long-dated financial assets positively for the balance
of 1997. However, the valuation levels for both the U.S. and European equity
markets, which led to our taking a more cautious stance in the second quarter of
1997, indicate that potential total returns versus bonds and cash may not be as
great as they have been thus far in the 1990s. At this juncture, our cash
holdings may restrict the Fund's short-term relative performance, but we feel
that this caution is warranted, due to extreme valuation levels in a number of
global markets. We continue to view Japan and the Pacific Rim as long-term
turnaround situations and thus intend to maintain our overweighted positions in
these regions.

We appreciate your continued support and interest in Dean Witter Global Asset
Allocation Fund and look forward to serving your investment needs in the future.

Sincerely,

[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
RESULTS OF SPECIAL MEETING (UNAUDITED)

On May 21, 1997, a special meeting of shareholders of Dean Witter Global Asset
Allocation Fund was held for the purpose of voting on five separate matters, the
results of which are as follows:

1) APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT BETWEEN THE FUND AND DEAN
WITTER INTERCAPITAL INC. IN CONNECTION WITH THE MERGER OF MORGAN STANLEY
GROUP INC. WITH DEAN WITTER, DISCOVER & CO.:

2) APPROVAL OF NEW SUB-ADVISORY AGREEMENTS BETWEEN (A) INTERCAPITAL AND MORGAN
GRENFELL INVESTMENT SERVICES LIMITED AND (B) INTERCAPITAL AND TCW FUNDS
MANAGEMENT, INC.:

<TABLE>
<CAPTION>
NO. OF
VOTE SHARES
- ------------------------------ ----------
<S> <C>
SUB-ADVISORY AGREEMENT (A)
For........................... 2,587,783
Against....................... 95,592
Abstain....................... 375,341
SUB-ADVISORY AGREEMENT (B)
For........................... 2,591,143
Against....................... 96,535
Abstain....................... 371,038
</TABLE>

3) ELECTION OF TRUSTEES:

<TABLE>
<S> <C>
Michael Bozic
For........................... 2,884,513
Withheld...................... 174,203
Charles A. Fiumefreddo
For........................... 2,883,885
Withheld...................... 174,831
Edwin J. Garn
For........................... 2,884,904
Withheld...................... 173,812
John R. Haire
For........................... 2,886,632
Withheld...................... 172,084
Wayne E. Hedien
For........................... 2,879,462
Withheld...................... 179,254
Dr. Manuel H. Johnson
For........................... 2,884,619
Withheld...................... 174,097
</TABLE>

<TABLE>
<S> <C>
Michael E. Nugent
For........................... 2,887,722
Withheld...................... 170,994
Philip J. Purcell
For........................... 2,886,602
Withheld...................... 172,114
John L. Schroeder
For........................... 2,878,947
Withheld...................... 179,769
</TABLE>

4) APPROVAL OF A NEW INVESTMENT POLICY WITH RESPECT TO INVESTMENTS IN CERTAIN
OTHER INVESTMENT COMPANIES:

<TABLE>
<CAPTION>
NO. OF
VOTE SHARES
- ------------------------------ ----------
<S> <C>
For........................... 2,608,607
Against....................... 148,340
Abstain....................... 301,769
</TABLE>

5) RATIFICATION OF THE SELECTION OF PRICE WATERHOUSE LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS:

<TABLE>
<CAPTION>
NO. OF
VOTE SHARES
- ------------------------------ ----------
<S> <C>
For........................... 2,780,740
Against....................... 25,175
Abstain....................... 252,801
</TABLE>
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, BONDS AND WARRANTS (84.6%)
ARGENTINA (0.4%)
BANKING
1,880 Banco de Galicia y Buenos Aires S.A. de C.V. (ADR)............................... $ 58,985
840 Banco Frances del Rio de la Plata S.A. (ADR)..................................... 29,820
-----------
88,805
-----------
ENERGY
2,700 Yacimentos Petroliferos Fiscales S.A. (ADR)...................................... 87,413
-----------
MULTI-INDUSTRY
11,791 Perez Companc S.A. (Class B)..................................................... 96,940
-----------

TOTAL ARGENTINA.................................................................. 273,158
-----------

BRAZIL (1.3%)
ENERGY
944,000 Petroleo Brasileiro S.A. (Pref.)................................................. 286,800
-----------
METALS & MINING
2,840 Companhia Vale do Rio Doce S.A. (Pref.) (ADR).................................... 74,550
-----------
TELECOMMUNICATIONS
2,380 Telecomunicacoes Brasileiras S.A. (ADR).......................................... 353,132
56,000 Telecomunicacoes de Sao Paulo S.A. (Pref.)....................................... 19,134
10,234 Telecomunicacoes de Sao Paulo S.A. (Pref.) (RCP)*................................ 3,412
-----------
375,678
-----------
UTILITIES - ELECTRIC
2,260 Companhia Energetica de Minas Gerais S.A. (ADR).................................. 127,125
260,000 Companhia Energetica de Minas Gerais S.A. (Pref.)................................ 14,646
-----------
141,771
-----------

TOTAL BRAZIL..................................................................... 878,799
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

CHILE (0.3%)
BEVERAGES - SOFT DRINKS
1,420 Embotelladora Andina S.A. (Series A) (ADR)....................................... $ 30,175
-----------
INVESTMENT COMPANIES
21,000 The Five Arrows Chile Investment Trust Ltd....................................... 70,035
-----------
TELECOMMUNICATIONS
3,125 Compania de Telecomunicaciones de Chile S.A. (ADR)............................... 102,930
-----------

TOTAL CHILE...................................................................... 203,140
-----------

COLOMBIA (0.1%)
BANKING
3,500 Banco Industrial Colombiano S.A. (ADR)........................................... 59,500
-----------

DENMARK (2.3%)
GOVERNMENT OBLIGATIONS
DKK 2,600 K Kingdom of Denmark 7.00% due 12/15/04............................................ 403,150
DKK 2,450 K Kingdom of Denmark 8.00% due 05/15/03............................................ 398,149
DKK 1,500 K Kingdom of Denmark 8.00% due 03/15/06............................................ 245,242
DKK 1,750 K Kingdom of Denmark 9.00% due 11/15/00............................................ 283,018
-----------
1,329,559
-----------
PHARMACEUTICALS
1,880 Novo-Nordisk AS (Series B)....................................................... 198,078
-----------

TOTAL DENMARK.................................................................... 1,527,637
-----------

FINLAND (0.3%)
MACHINERY
223 Rauma Group...................................................................... 4,914
-----------
PAPER PRODUCTS
8,000 UPM-Kymmene Corp................................................................. 194,524
-----------

TOTAL FINLAND.................................................................... 199,438
-----------
</TABLE>

TOTAL FRANCE..................................................................... 2,159,386
-----------
GERMANY (2.7%)
AUTOMOTIVE
280 Bayerische Motoren Werke (BMW) AG................................................ 228,143
410 Volkswagen AG.................................................................... 313,549
-----------
541,692
-----------
CHEMICALS
4,638 BASF AG.......................................................................... 178,229
1,050 SGL Carbon AG.................................................................... 139,638
-----------
317,867
-----------
CHEMICALS - DIVERSIFIED
2,950 Hoechst AG....................................................................... 138,555
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
GOVERNMENT OBLIGATIONS
DEM 590 K German Unity Fund 8.00% due 01/12/02............................................. $ 364,430
DEM 470 K Germany (Federal Republic) 7.25% due 10/21/02.................................... 284,505
-----------
648,935
-----------
UTILITIES - ELECTRIC
2,650 VEBA AG.......................................................................... 154,085
-----------

TOTAL GERMANY.................................................................... 1,801,134
-----------

HONG KONG (6.6%)
BANKING
16,000 Dao Heng Bank Group Ltd.......................................................... 97,558
36,400 Hang Seng Bank Ltd............................................................... 531,353
-----------
628,911
-----------
CONGLOMERATES
110,000 Hutchison Whampoa, Ltd........................................................... 1,072,859
-----------
ELECTRIC
37,000 China Light & Power Co., Ltd..................................................... 212,221
-----------
MANUFACTURING
43,000 Shanghai Industrial Holdings Ltd................................................. 299,961
-----------
REAL ESTATE
87,000 Cheung Kong (Holdings) Ltd....................................................... 966,542
97,000 Hong Kong Land Holdings Ltd...................................................... 241,530
61,000 New World Development Co., Ltd................................................... 439,317
60,000 Wharf (Holdings) Ltd............................................................. 252,680
-----------
1,900,069
-----------
TELECOMMUNICATIONS
119,200 Hong Kong Telecommunications Ltd................................................. 310,280
-----------

TOTAL HONG KONG.................................................................. 4,424,301
-----------

ITALY (2.7%)
ENERGY
22,200 Ente Nazionale Idrocarburi SpA................................................... 129,787
-----------
</TABLE>

TOTAL ITALY...................................................................... 1,812,637
-----------

JAPAN (17.2%)
AUTOMOTIVE
28,000 Suzuki Motor Co. Ltd............................................................. 340,138
-----------
BANKING
20,000 Bank of Tokyo-Mitsubishi Ltd..................................................... 371,183
16,000 Mitsubishi Trust & Banking....................................................... 233,508
-----------
604,691
-----------
BUILDING & CONSTRUCTION
15,000 Nishimatsu Construction Co....................................................... 85,288
14,000 Sekisui House Ltd................................................................ 133,457
-----------
218,745
-----------
BUSINESS SERVICES
26,000 Ricoh Co., Ltd................................................................... 401,383
-----------
CHEMICALS
55,000 Asahi Chemical Industrial Co. Ltd................................................ 299,266
53,000 Nippon Zeon Co. Ltd.............................................................. 263,793
21,000 Shin-Etsu Chemical Co............................................................ 598,785
-----------
1,161,844
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRICAL EQUIPMENT
17,000 Sumitomo Electric Industries..................................................... $ 282,521
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT
23,000 Canon, Inc....................................................................... 733,423
32,000 Hitachi, Ltd..................................................................... 361,734
4,000 Kyocera Corp..................................................................... 344,188
21,000 Matsushita Electric Industrial Co., Ltd.......................................... 437,574
20,000 NGK Insulators, Ltd.............................................................. 215,961
5,000 Sony Corp........................................................................ 497,722
-----------
2,590,602
-----------
ENGINEERING & CONSTRUCTION
26,000 Kajima Corp...................................................................... 134,452
-----------
FINANCIAL SERVICES
3,000 Japan Associated Finance......................................................... 180,192
11,000 Nomura Securities Co. Ltd........................................................ 155,897
-----------
336,089
-----------
INSURANCE
18,000 Tokio Marine & Fire Insurance Co................................................. 229,290
-----------
INTERNATIONAL TRADE
32,000 Mitsubishi Corp.................................................................. 342,838
-----------
MACHINERY
19,000 Daifuku Co. Ltd.................................................................. 250,042
64,000 Kawasaki Heavy Industries*....................................................... 261,853
3,100 Keyence Corp..................................................................... 502,109
26,000 Minebea Co., Ltd................................................................. 309,263
47,000 NSK Ltd.......................................................................... 286,663
-----------
1,609,930
-----------
MANUFACTURING
4,900 Sony Music Entertainment Inc..................................................... 227,349
-----------
METALS & MINING
57,000 Mitsubishi Materials Corp........................................................ 197,149
-----------
PHARMACEUTICALS
11,000 Yamanouchi Pharmaceutical Co..................................................... 296,946
-----------
REAL ESTATE
17,000 Mitsubishi Estate Co. Ltd........................................................ 242,365
14,000 Mitsui Fudosan Co................................................................ 179,517
-----------
421,882
-----------
</TABLE>

MALAYSIA (1.8%)
BANKING
39,000 Malayan Banking Berhad........................................................... 370,300
-----------
BUILDING & CONSTRUCTION
6,000 Gamuda Berhad (Warrants due 12/29/01)............................................ 5,469
40,000 Road Builder (M) Holdings Berhad................................................. 167,110
57,000 United Engineers (Malaysia) Berhad Ltd........................................... 398,329
-----------
570,908
-----------
UTILITIES - ELECTRIC
75,000 Tenaga Nasional Berhad........................................................... 301,937
-----------
TOTAL MALAYSIA................................................................... 1,243,145
-----------
MEXICO (1.3%)
BANKING
8,750 Grupo Financiero Inbursa S.A. de C.V. (B Shares)................................. 42,866
-----------
BUILDING & CONSTRUCTION
4,000 Apasco S.A. de C.V............................................................... 30,698
2,300 Empresa ICA Sociedad Controladora S.A. de C.V. (ADR)............................. 43,125
-----------
73,823
-----------

TOTAL MEXICO..................................................................... 877,586
-----------

NETHERLANDS (2.3%)
CHEMICALS
780 Akzo Nobel....................................................................... 120,840
-----------
ELECTRICAL EQUIPMENT
2,160 Philips Electronics N.V.......................................................... 175,245
-----------
INSURANCE
2,506 Aegon NV......................................................................... 190,247
4,720 ING Groep NV..................................................................... 229,766
-----------
420,013
-----------
PUBLISHING
9,000 Ver Ned Uitgev Ver Bezit NV...................................................... 214,275
1,212 Wolters Kluwer NV................................................................ 159,672
-----------
373,947
-----------
</TABLE>

SINGAPORE (1.8%)
AIRLINES
19,000 Singapore Airlines Ltd........................................................... 178,222
-----------
BANKING
44,800 Overseas-Chinese Banking Corp. Ltd............................................... 450,680
-----------
REAL ESTATE
31,000 City Developments Ltd............................................................ 263,390
73,000 DBS Land Ltd..................................................................... 227,257
27,000 Parkway Holdings Ltd............................................................. 123,878
-----------
614,525
-----------

TOTAL SINGAPORE.................................................................. 1,243,427
-----------

SPAIN (1.5%)
BANKS
6,750 Banco Bilbao Vizcaya............................................................. 176,168
1,020 Banco Popular Espanol S.A........................................................ 225,966
-----------
402,134
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRIC
7,600 Empresa Nacional de Electricidad, S.A. (Endesa).................................. $ 156,530
-----------
FINANCIAL SERVICES
1,100 Corporacion Financiera Alba...................................................... 126,871
-----------
GOVERNMENT OBLIGATIONS
ESP 30,000 K Spain (Government of) 7.90% due 02/28/02......................................... 212,647
-----------
TELECOMMUNICATIONS
3,400 Telefonica de Espana S.A......................................................... 91,144
-----------

TOTAL SPAIN...................................................................... 989,326
-----------

SWEDEN (2.0%)
AUTO TRUCKS & PARTS
4,500 Scania AB (A Shares)............................................................. 128,941
-----------
BUSINESS SERVICES
7,440 Assa Abloy AB (Series B)......................................................... 162,913
5,940 Securitas AB (Series "B" Free)................................................... 172,432
-----------
335,345
-----------
ELECTRICAL EQUIPMENT
4,950 Ericsson (L.M.) Telephone Co. AB (Series "B" Free)............................... 222,663
-----------
GOVERNMENT OBLIGATIONS
SEK 1,800 K Sweden (Government of) 6.00% due 02/09/05........................................ 223,153
-----------
MULTI-LINE INSURANCE
2,750 Skandia Forsakrings AB........................................................... 111,487
-----------
PAPER PRODUCTS
9,225 Stora Kopparbergs Bergslags Aktiebolag (A Shares)................................ 151,211
-----------
PHARMACEUTICALS
8,533 Astra AB (B Shares).............................................................. 143,071
-----------

TOTAL SWEDEN..................................................................... 1,315,871
-----------

SWITZERLAND (1.3%)
CHEMICALS
180 Novartis AG...................................................................... 289,120
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONGLOMERATES
120 ABB AG - Bearer.................................................................. $ 170,668
-----------
FOODS & BEVERAGES
100 Nestle SA........................................................................ 127,002
-----------
PHARMACEUTICALS
30 Roche Holdings AG................................................................ 290,371
-----------
TOTAL SWITZERLAND................................................................ 877,161
-----------
UNITED KINGDOM (8.2%)
AEROSPACE
36,091 Rolls-Royce PLC.................................................................. 138,461
-----------
AUTO PARTS
38,580 BBA Group PLC.................................................................... 214,424
-----------
BANKING
8,712 HSBC Holdings PLC................................................................ 314,947
22,401 National Westminster Bank PLC.................................................... 318,051
-----------
632,998
-----------
BUILDING MATERIALS
32,357 Blue Circle Industries PLC....................................................... 219,624
33,602 Redland PLC...................................................................... 156,181
-----------
375,805
-----------
CHEMICALS
5,185 Courtaulds PLC................................................................... 26,608
-----------
ELECTRICAL EQUIPMENT
18,909 BICC Group (The) PLC............................................................. 52,082
38,580 General Electric Co. PLC......................................................... 222,647
-----------
274,729
-----------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
13,067 Bass PLC......................................................................... 178,671
-----------
GOVERNMENT OBLIGATIONS
L 186 K United Kingdom Treasury Gilt 7.75% due
09/08/06....................................................................... 319,756
L 42 K United Kingdom Treasury Gilt 9.50% due
04/18/05....................................................................... 79,558
L 80 K United Kingdom Treasury Gilt 10.00% due 09/08/03................................. 150,369
-----------
549,683
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INSURANCE
23,646 Prudential Corp. PLC............................................................. $ 226,403
32,113 Royal & Sun Alliance Insurance Group PLC......................................... 263,773
-----------
490,176
-----------
LEISURE
9,956 Granada Group PLC................................................................ 137,112
22,401 Rank Group PLC................................................................... 126,706
-----------
263,818
-----------
MULTI-INDUSTRY
44,803 Tomkins PLC...................................................................... 226,240
-----------
NATURAL GAS
14,531 BG PLC........................................................................... 59,321
-----------
OIL - INTERNATIONAL - INTEGRATED
66,457 Shell Transport & Trading Co. PLC................................................ 491,393
-----------
PAPER
18,000 De La Rue PLC.................................................................... 108,896
-----------
PHARMACEUTICALS
23,024 Glaxo Wellcome PLC............................................................... 487,325
-----------
PUBLISHING
12,445 EMAP PLC......................................................................... 157,108
-----------
RETAIL
11,201 Great Universal Stores PLC....................................................... 115,326
-----------
TELECOMMUNICATIONS
46,545 British
Telecommunications PLC......................................................... 325,846
33,306 Securicor PLC.................................................................... 151,256
-----------
477,102
-----------
TRANSPORTATION
22,401 British Airways PLC.............................................................. 243,496
-----------

TOTAL UNITED KINGDOM............................................................. 5,511,580
-----------

UNITED STATES (27.1%)
AEROSPACE & DEFENSE
4,590 General Motors Corp. (Class H)................................................... 277,408
8,720 Watkins-Johnson Co............................................................... 303,020
-----------
580,428
-----------
AIR TRANSPORT
7,980 Continental Airlines, Inc. (Class B)*............................................ 297,255
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
AUTOMOTIVE
8,100 Chrysler Corp.................................................................... $ 300,712
6,960 Ford Motor Co.................................................................... 284,490
-----------
585,202
-----------
BANKING
$ 200 K Bankers Trust Co. - 144A** 8.09% due 12/01/26.................................... 204,750
2,230 Citicorp......................................................................... 302,722
5,440 First Tennessee National Corp.................................................... 282,880
4,340 Washington Mutual, Inc........................................................... 299,460
-----------
1,089,812
-----------
CHEMICALS
6,320 Monsanto Co...................................................................... 314,815
-----------
COMPUTER SOFTWARE
8,260 Gateway 2000, Inc.*.............................................................. 315,429
2,080 Microsoft Corp.*................................................................. 293,930
5,280 Oracle Corp.*.................................................................... 286,770
-----------
896,129
-----------
COMPUTER SOFTWARE & SERVICES
7,980 Seagate Technology, Inc.*........................................................ 327,679
-----------
COMPUTERS - SYSTEMS
7,200 Sun Microsystems, Inc.*.......................................................... 328,950
-----------
CONGLOMERATES
5,570 Litton Industries, Inc.*......................................................... 289,292
-----------
DRUGS & HEALTHCARE
3,430 American Home Products Corp...................................................... 282,761
4,180 Johnson & Johnson................................................................ 260,466
-----------
543,227
-----------
ELECTRICAL EQUIPMENT
3,520 Honeywell, Inc................................................................... 262,900
-----------
ELECTRONICS
4,110 General Electric Co.............................................................. 288,471
-----------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
3,720 Intel Corp....................................................................... 341,310
6,440 Micron Technology, Inc........................................................... 313,547
-----------
654,857
-----------
ENTERTAINMENT
3,280 The Walt Disney Co............................................................... 265,065
-----------
FINANCIAL
6,100 Fannie Mae....................................................................... 288,606
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
FINANCIAL - MISCELLANEOUS
$ 100 K Central Fidelity Capital I - 144A** 6.75% due 04/15/27........................... $ 102,601
3,750 Golden West Financial Corp....................................................... 315,469
-----------
418,070
-----------
FINANCIAL SERVICES
$ 100 K Associates Corp. N.A. 6.375% due 08/15/99........................................ 100,730
4,220 Travelers Group, Inc............................................................. 303,576
-----------
404,306
-----------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
4,110 General Mills, Inc............................................................... 284,104
7,170 PepsiCo, Inc..................................................................... 274,701
-----------
558,805
-----------
HEALTH EQUIPMENT & SERVICES
6,850 Columbia/HCA Healthcare Corp..................................................... 220,912
-----------
HEALTHCARE - DIVERSIFIED
11,680 Humana, Inc.*.................................................................... 284,700
-----------
INSURANCE
2,760 American International Group, Inc................................................ 293,940
-----------
MEDICAL PRODUCTS & SUPPLIES
4,860 Baxter International Inc......................................................... 280,969
-----------
OIL - INTERNATIONAL - INTEGRATED
4,360 Exxon Corp....................................................................... 280,130
-----------
OIL RELATED
3,840 Mobil Corp....................................................................... 293,760
-----------
PAPER PRODUCTS
5,750 Bowater Inc...................................................................... 301,156
4,870 Champion International Corp...................................................... 301,940
-----------
603,096
-----------
RETAIL - MERCHANDISING
21,800 Kmart Corp.*..................................................................... 258,875
-----------
RETAIL - SPECIALTY
8,220 Bed Bath & Beyond,
Inc.*.......................................................................... 271,260
5,910 Home Depot, Inc.................................................................. 294,761
-----------
566,021
-----------
STEEL
4,650 Nucor Corp....................................................................... 288,591
-----------
</TABLE>

TOTAL UNITED STATES.............................................................. 18,219,524
-----------

VENEZUELA (0.1%)
TELECOMMUNICATIONS
1,000 Compania Anonima Nacional Telefonos de Venezuela (Class D) (ADR)................. 43,625
-----------

TOTAL COMMON AND PREFERRED STOCKS, BONDS AND WARRANTS
(IDENTIFIED COST $49,475,467).................................................... 56,891,134
-----------

PURCHASED CALL OPTION ON FOREIGN CURRENCY (0.1%)
DEM 9,000 JANUARY 16, 1998/
DEM 1.7890 (Identified Cost $20,655)........................................... 30,848
-----------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

SHORT-TERM INVESTMENT (a) (13.8%)
U.S. GOVERNMENT AGENCY
$9,300 Federal Home Loan Mortgage Corp. 5.75% due 08/01/97 (AMORTIZED COST
$9,300,000).................................................................... $ 9,300,000
-----------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $58,796,122) (B).......................................................... 98.5 % 66,221,982

CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................................. 1.5 1,018,829
------ ------------

NET ASSETS................................................................................. 100.0 % $ 67,240,811
------ ------------
------ ------------
</TABLE>

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

ADR American Depository Receipt.
GDR Global Depository Receipt.
RCP Receipt shares.
K In thousands
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $9,492,605 and the
aggregate gross unrealized depreciation is $2,066,745, resulting in net
unrealized appreciation of $7,425,860.

<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT
JULY 31, 1997:
CONTRACTS IN
TO EXCHANGE DELIVERY UNREALIZED
RECEIVE FOR DATE APPRECIATION
- ----------------------------------------------
<C> <C> <S> <C>
L 390,737 $638,777 08/01/97 $ 1,836
L 29,387 $ 47,798 08/01/97 382
------
Unrealized appreciation.... $ 2,218
------
------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
SUMMARY OF INVESTMENTS JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
<S> <C> <C>
Aerospace............................... $ 138,461 0.2%
Aerospace & Defense..................... 580,428 0.9
Air Transport........................... 297,255 0.4
Airlines................................ 178,222 0.3
Auto Parts.............................. 214,424 0.3
Auto Trucks & Parts..................... 128,941 0.2
Automotive.............................. 1,467,032 2.2
Banking................................. 3,968,563 5.9
Banks................................... 402,134 0.6
Banks - Money Center.................... 2,047 0.0
Beverages - Soft Drinks................. 30,175 0.0
Brewery................................. 38,676 0.1
Building & Construction................. 863,476 1.3
Building Materials...................... 492,651 0.7
Business Services....................... 736,728 1.1
Chemicals............................... 2,231,094 3.3
Chemicals - Diversified................. 138,555 0.2
Computer Software....................... 896,129 1.3
Computer Software & Services............ 327,679 0.5
Computers - Systems..................... 328,950 0.5
Conglomerates........................... 1,739,266 2.6
Currency Options........................ 30,848 0.1
Drugs & Healthcare...................... 543,227 0.8
Electric................................ 368,751 0.5
Electrical Equipment.................... 1,218,058 1.8
Electronic & Electrical Equipment....... 2,590,602 3.9
Electronics............................. 288,471 0.4
Electronics - Semiconductors............ 177,420 0.3
Electronics - Semiconductors/
Components............................ 654,857 1.0
Energy.................................. 696,792 1.0
Engineering & Construction.............. 134,453 0.2
Entertainment........................... 265,065 0.4
Financial............................... 288,606 0.4
Financial - Miscellaneous............... 418,070 0.6
Financial Services...................... 1,026,507 1.5
Food, Beverage, Tobacco & Household
Products.............................. 920,713 1.4
Foods & Beverages....................... 242,274 0.4
Government Obligations (Foreign)........ 4,460,531 6.6
Government Obligations (U.S.)........... 5,860,205 8.7
Health Equipment & Services............. 220,912 0.3
Healthcare - Diversified................ 284,700 0.4
Household Furnishings & Appliances...... 176,400 0.3
Household Products...................... 169,852 0.3
Insurance............................... 1,609,905 2.4

<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
<S> <C> <C>
International Trade..................... $ 342,838 0.5%
Investment Companies.................... 70,035 0.1
Leisure................................. 263,818 0.4
Machinery............................... 1,614,843 2.4
Manufacturing........................... 527,310 0.8
Media Group............................. 30,687 0.0
Medical Products & Supplies............. 280,969 0.4
Metals & Mining......................... 301,167 0.5
Multi - Industry........................ 323,180 0.5
Multi - Line Insurance.................. 111,487 0.2
Natural Gas............................. 59,321 0.1
Oil & Gas............................... 165,599 0.2
Oil Integrated - International.......... 771,523 1.1
Oil Related............................. 293,760 0.4
Paper................................... 108,896 0.2
Paper & Forest Products................. 73,830 0.1
Paper Products.......................... 948,831 1.4
Pharmaceuticals......................... 1,415,791 2.1
Publishing.............................. 531,055 0.8
Real Estate............................. 2,936,476 4.4
Record & Tape Distribution.............. 165,577 0.3
Retail.................................. 1,037,029 1.5
Retail - Merchandising.................. 258,875 0.4
Retail - Specialty...................... 566,021 0.8
Steel................................... 288,591 0.4
Steel & Iron............................ 712,273 1.1
Telecommunication Equipment............. 496,529 0.7
Telecommunications...................... 2,727,701 4.1
Textiles................................ 193,606 0.3
Textiles - Apparel...................... 212,249 0.3
Tire & Rubber Goods..................... 122,043 0.2
Tobacco................................. 280,678 0.4
Transportation.......................... 243,496 0.4
U.S. Government Agency.................. 9,300,000 13.8
Utilities - Electric.................... 597,793 0.9
------------ ---
$ 66,221,982 98.5%
------------ ---
------------ ---
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------
<S> <C> <C>
Common Stocks........................... $ 45,832,857 68.2%
Corporate Bonds......................... 408,081 0.6
Foreign Currency Call Option............ 30,848 0.1
Preferred Stocks........................ 323,991 0.5
U.S. Government Agency ................. 9,300,000 13.8
U.S. & Foreign Government Obligations... 10,320,736 15.3
Warrants................................ 5,469 --
------------ ---
$ 66,221,982 98.5%
------------ ---
------------ ---
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997 (UNAUDITED)

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $58,796,122)............................. $66,221,982
Cash (including $458,033 in foreign currency)............... 1,096,053
Receivable for:
Investments sold........................................ 515,781
Interest................................................ 243,337
Shares of beneficial interest sold...................... 149,627
Dividends............................................... 41,863
Foreign withholding taxes reclaimed..................... 40,239
Deferred organizational expenses............................ 91,039
Prepaid expenses and other assets........................... 75,109
-----------
TOTAL ASSETS........................................... 68,475,030
-----------
LIABILITIES:
Payable for:
Investments purchased................................... 1,048,204
Investment management fee............................... 56,789
Plan of distribution fee................................ 50,076
Shares of beneficial interest repurchased............... 13,047
Accrued expenses and other payables......................... 66,103
-----------
TOTAL LIABILITIES...................................... 1,234,219
-----------
NET ASSETS............................................. $67,240,811
-----------
-----------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. 55,610,358
Net unrealized appreciation................................. 7,433,715
Dividends in excess of net investment income................ (82,790)
Accumulated undistributed net realized gain................. 4,279,528
-----------
NET ASSETS............................................. $67,240,811
-----------
-----------
CLASS A SHARES:
Net Assets.................................................. $10,099
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 765
NET ASSET VALUE PER SHARE.............................. $13.20
-----------
-----------

MAXIMUM OFFERING PRICE PER SHARE
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)...... $13.93
-----------
-----------
CLASS B SHARES:
Net Assets.................................................. $67,202,806
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 5,089,320
NET ASSET VALUE PER SHARE.............................. $13.20
-----------
-----------
CLASS C SHARES:
Net Assets.................................................. $17,806
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 1,349
NET ASSET VALUE PER SHARE.............................. $13.20
-----------
-----------
CLASS D SHARES:
Net Assets.................................................. $10,100
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 765
NET ASSET VALUE PER SHARE.............................. $13.20
-----------
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1997*

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

INCOME
Dividends (net of $54,493 foreign withholding tax).......... $ 505,930
Interest.................................................... 437,083
-----------

TOTAL INCOME........................................... 943,013
-----------

EXPENSES
Investment management fee................................... 321,778
Plan of distribution fee (Class B shares)................... 295,872
Shareholder reports and notices............................. 50,510
Professional fees........................................... 45,871
Transfer agent fees and expenses............................ 35,424
Custodian fees.............................................. 32,638
Registration fees........................................... 18,513
Organizational expenses..................................... 17,503
Trustees' fees and expenses................................. 5,826
Other....................................................... 11,268
-----------

TOTAL EXPENSES......................................... 835,203
-----------

NET INVESTMENT INCOME.................................. 107,810
-----------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain (loss) on:
Investments............................................. 4,405,905
Foreign exchange transactions........................... (67,152)
-----------

NET GAIN............................................... 4,338,753
-----------
Net change in unrealized appreciation/depreciation on:
Investments............................................. 2,758,344
Translation of forward foreign currency contracts, other
assets and liabilities denominated in foreign
currencies............................................ 7,163
-----------

NET APPRECIATION....................................... 2,765,507
-----------

NET GAIN............................................... 7,104,260
-----------

NET INCREASE................................................ $ 7,212,070
-----------
-----------

<FN>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JULY 31, 1997* JANUARY 31,
(UNAUDITED) 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income....................................... $ 107,810 $ 65,971
Net realized gain........................................... 4,338,753 1,876,766
Net change in unrealized appreciation....................... 2,765,507 584,125
--------------- --------------

NET INCREASE........................................... 7,212,070 2,526,862
--------------- --------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class B shares.......................................... (148,714) (554,313)
Net realized gain
Class B shares.......................................... -- (2,041,599)
--------------- --------------

TOTAL DIVIDENDS AND DISTRIBUTIONS...................... (148,714) (2,595,912)
--------------- --------------
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (5,136,335) 21,111,669
--------------- --------------

NET INCREASE........................................... 1,927,021 21,042,619
--------------- --------------

NET ASSETS:
Beginning of period......................................... 65,313,790 44,271,171
--------------- --------------

END OF PERIOD
(INCLUDING DIVIDENDS IN EXCESS OF NET INVESTMENT INCOME
OF $82,790 AND $41,886, RESPECTIVELY)................... $ 67,240,811 $ 65,313,790
--------------- --------------
--------------- --------------

<FN>
- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED)

1. ORGANIZATION AND ACCOUNTING POLICIES

Dean Witter Global Asset Allocation 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 long-term total return on its investments. The Fund seeks to achieve its
objective through a managed investment policy utilizing a portfolio of U.S. and
foreign equity, debt and money market securities. The Fund was organized as a
Massachusetts business trust on October 18, 1994 and commenced operations on
February 28, 1995. On July 28, 1997, the Fund commenced offering three
additional classes of shares, with the then current shares designated as Class B
shares.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase, 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 Dean Witter InterCapital Inc. (the "Investment Manager") or by TCW
Funds Management, Inc. or Morgan Grenfell Investment Services, Ltd. (the
"Sub-Advisers") that sale and bid prices are not reflective of a security's
market value, portfolio securities are valued at their fair value as determined
in good faith under procedures established by and under the general supervision
of the Trustees (valuation of debt securities for which market quotations are
not readily available may be based upon current market
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

prices of securities which are comparable in coupon, rating and maturity or an
appropriate matrix utilizing similar factors); (4) certain of the Fund's
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 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 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 by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends from foreign securities which are recorded as soon
as the Fund is informed after the ex-dividend date. Discounts are accreted over
the life of the respective securities. Interest income is accrued daily.

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 the income is earned or expenses and
realized and unrealized gains and losses are incurred. Distribution fees are
charged directly to the respective class.

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 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.
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

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

E. OPTION ACCOUNTING PRINCIPLES -- When the Fund writes a call option, an amount
equal to the premium received is included in the Fund's Statement of Assets and
Liabilities as a liability which is subsequently marked-to-market to reflect the
current market value of the option written. If a written option either expires
or the Fund enters into a closing purchase transaction, the Fund realizes a gain
or loss without regard to any unrealized gain or loss on the underlying security
or currency and the liability related to such option is extinguished. If a
written call option is exercised, the Fund realizes a gain or loss from the sale
of the underlying security or currency and the proceeds from such sale are
increased by the premium originally received.

When the Fund purchases a call or put option, the premium paid is recorded as an
investment and is subsequently marked-to-market to reflect the current market
value. If a purchased option expires, the Fund will realize a loss to the extent
of the premium paid. If the Fund enters into a closing sale transaction, a gain
or loss is realized for the difference between the proceeds from the sale and
the cost of the option. If a put option is exercised, the cost of the security
or currency sold upon exercise will be increased by the premium originally paid.
If a call option is exercised, the cost of the security purchased upon exercise
will be increased by the premium originally paid.

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

G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

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 $177,000 of which
approximately $144,000 have been reimbursed. The balance has been absorbed by
the Investment Manager. Such expenses have been deferred and are being amortized
on the straight-line method over a period not to exceed five years from
commencement of operations.

2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS

Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, calculated daily and payable monthly, by applying the
annual rate of 1.0% 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 Sub-Advisory Agreements between the Sub-Advisers and the Investment
Manager, the Sub-Advisers provide the Fund with investment advice and portfolio
management relating to the Fund's investments in securities, subject to the
overall supervision of the Investment Manager. As compensation for the services
provided pursuant to the Sub-Advisory Agreements, the Investment Manager pays
each Sub-Adviser monthly compensation equal to 30% 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. 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 -- 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
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

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 -- 1.0% of the average daily net assets of Class C.
In the case of Class A shares, amounts paid under the Plan are paid to the
Distributor for services provided. In the case of Class B and Class C shares,
amounts paid under the Plan are paid to the Distributor for services provided
and the expenses borne by it and others in the distribution of the shares of
these Classes, including the payment of commissions for sales of these Classes
and incentive compensation to, and expenses of, the account executives of Dean
Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, and others who engage in or support distribution of the shares or
who service shareholder accounts, including overhead and telephone expenses;
printing and distribution of prospectuses and reports used in connection with
the offering of these shares to other than current shareholders and preparation,
printing and distribution of sales literature and advertising materials. In
addition, the Distributor may utilize fees paid pursuant to the Plan, in the
case of Class B shares, to compensate DWR 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 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 $3,831,755 at July 31, 1997.

In the case of Class A and Class C shares, expenses incurred pursuant to the
Plan in any calendar year in excess of 0.25% or 1.0% of the average daily net
assets of Class A or Class C, respectively, will not be reimbursed by the Fund
through payments in any subsequent year, except that expenses representing a
gross sales credit to account executives may be reimbursed in the subsequent
calendar year. For the period ended July 31, 1997, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
1.0%, respectively.

The Distributor has informed the Fund that for the six months ended July 31,
1997, it received contingent deferred sales charges from redemptions of the
Fund's Class B shares of $102,789. The shareholders pay such charges which are
not an expense of the Fund.
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended July 31, 1997 aggregated
$30,102,518 and $43,929,281, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $7,590,507 and $6,750,012
respectively.

For the period May 31, 1997 through July 31, 1997, the Fund incurred brokerage
commissions of $266 with Morgan Stanley Inc., an affiliate of the Investment
Manager since May 31, 1997, for portfolio transactions executed on behalf of the
Fund. At July 31, 1997, the Fund's receivable for investments sold included
unsettled trades with Morgan Stanley Inc., of $47,545.

For the six months ended July 31, 1997, the Fund incurred brokerage commissions
of $14,940 with DWR for portfolio transactions executed on behalf of the Fund.

Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At July 31, 1997, the Fund had
transfer agent fees and expenses payable of approximately $2,000.

5. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
JULY 31, 1997 FOR THE YEAR
------------------------------- ENDED
JANUARY 31, 1997
(UNAUDITED) -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES*
Sold......................................... 765 $ 10,015 -- --
----------- -------------- ----------- ------------
CLASS B SHARES
Sold......................................... 454,881 5,588,909 2,505,555 $ 30,094,772
Reinvestment of dividends and
distributions............................... 10,418 134,288 199,063 2,368,262
Redeemed..................................... (892,208) (10,897,219) (944,898) (11,351,365)
----------- -------------- ----------- ------------
Net increase (decrease) - Class B............ (426,909) (5,174,022) 1,759,720 21,111,669
----------- -------------- ----------- ------------
CLASS C SHARES*
Sold......................................... 1,349 17,657 -- --
----------- -------------- ----------- ------------
CLASS D SHARES*
Sold......................................... 765 10,015 -- --
----------- -------------- ----------- ------------
Net increase (decrease) in Fund.............. (424,030) $ (5,136,335) 1,759,720 $ 21,111,669
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>

- ---------------------
* For the period July 28, 1997 (issue date) through July 31, 1997.

<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 (UNAUDITED) CONTINUED

6. FEDERAL INCOME TAX STATUS

Capital 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 capital losses of
approximately $56,000 during fiscal 1997.

As of January 31, 1997, the Fund had temporary book/tax differences primarily
attributable to post-October losses and income from the mark-to-market of
passive foreign investment companies.

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 January 31, 1997, the Fund had outstanding forward contracts to facilitate
settlement of foreign currency denominated portfolio transactions.
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE SIX FOR THE FEBRUARY
MONTHS ENDED YEAR 28, 1995*
JULY 31, ENDED THROUGH
1997** JANUARY 31, JANUARY 31,
(UNAUDITED) 1997 1996
- -------------------------------------------------------------------------

<S> <C> <C> <C>
CLASS B SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of
period........................ $ 11.84 $ 11.79 $ 10.00
------ ----------- -----------

Net investment income
(loss)........................ 0.02 (0.01) 0.17
Net realized and unrealized
gain.......................... 1.37 0.55 2.20
------ ----------- -----------

Total from investment
operations.................... 1.39 0.54 2.37
------ ----------- -----------

Less dividends and
distributions:
Net investment income....... (0.03) (0.11) (0.34)
Net realized gain........... -- (0.38) (0.24)
------ ----------- -----------
Total dividends and
distributions................. (0.03) (0.49) (0.58)
------ ----------- -----------
Net asset value, end of
period........................ $ 13.20 $ 11.84 $ 11.79
------ ----------- -----------
------ ----------- -----------

TOTAL INVESTMENT RETURN+...... 11.74%(1) 4.58% 23.89%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses...................... 2.60%(2) 2.53% 1.14%(2)(3)

Net investment income......... 0.34%(2) 0.11% 1.71%(2)(3)

SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands..................... $67,203 $65,314 $44,271

Portfolio turnover rate....... 49%(1) 63% 71%(1)

Average commission rate
paid.......................... $0.0132 $0.0013 --
<FN>

- ---------------------
* Commencement of operations.
** Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
+ 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) If the Investment Manager had not reimbursed all expenses, the above
annualized expense and net investment loss ratios would have been 2.87% and
(0.02)%, respectively.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JULY 31, 1997
- ----------------------------------------------------------------------------------------

<S> <C>
CLASS A SHARES

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 13.09
------

Net realized and unrealized gain...................................... 0.11
------
Net asset value, end of period........................................ $ 13.20
------
------

TOTAL INVESTMENT RETURN+.............................................. 0.84%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.94%(2)

Net investment income................................................. 1.88%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 10

Portfolio turnover rate............................................... 49%(1)

Average commission rate paid.......................................... $0.0132

CLASS C SHARES

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 13.09
------

Net realized and unrealized gain...................................... 0.11
------
Net asset value, end of period........................................ $ 13.20
------
------

TOTAL INVESTMENT RETURN+.............................................. 0.84%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 2.68%(2)

Net investment income................................................. 1.13%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 18

Portfolio turnover rate............................................... 49%(1)

Average commission rate paid.......................................... $0.0132
<FN>

- ---------------------
* The date shares were first issued.
+ 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.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER GLOBAL ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JULY 31, 1997
- ----------------------------------------------------------------------------------------

<S> <C>
CLASS D SHARES

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 13.09
------

Net realized and unrealized gain...................................... 0.11
------
Net asset value, end of period........................................ $ 13.20
------
------

TOTAL INVESTMENT RETURN+.............................................. 0.84%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.68%(2)

Net investment income................................................. 2.13%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... 10

Portfolio turnover rate............................................... 49%(1)

Average commission rate paid.......................................... $0.0132
<FN>

- ---------------------
* The date shares were first issued.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>

TRUSTEES

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Barry Fink
Vice President, Secretary and General Counsel

Mark Bavoso
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT

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

INDEPENDENT ACCOUNTANTS

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

INVESTMENT MANAGER

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

The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.

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

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

DEAN WITTER
GLOBAL ASSET
ALLOCATION FUND

[GRAPHIC]

SEMIANNUAL REPORT
JULY 31, 1997