<PAGE>
Morgan Stanley Dean Witter Information Fund
Letter to the Shareholders March 31, 2000
Two World Trade Center, New York, New York 10048
DEAR SHAREHOLDER:
During the 12-month period ended March 31, 2000, the U.S. equity market, led by
technology stocks, continued its bull market run. The use of information
technology has helped lead the U.S. economy to unprecedented levels of growth
combined with low levels of inflation, further helping to drive the bull market.
However, while this apparent secular change to the economy was occurring, the
Federal Reserve Board remained on the watch for signs of inflation, continuing
to tighten interest rates. Even given these concerns, the world economy - and
especially that of the United States - continued to evolve toward an
information-based economy. Subsequent to the end of the period, tech stocks
pulled back sharply amid intense volatility.
PERFORMANCE AND PORTFOLIO STRATEGY
During the 12-month period ended March 31, 2000, Morgan Stanley Dean Witter
Information Fund's Class B shares produced a total return of 154.62 percent,
compared with 17.94 percent for the Standard & Poor's 500 Composite Stock Price
Index (S&P 500). For the same period the Fund's Class A, C and D shares posted
total returns of 155.88 percent, 154.10 percent and 156.56 percent,
respectively. Given the rapid rise of stock prices during the period,
particularly among technology issues, there can be no expectation that the
Fund's impressive results will be repeated. The performance of the Fund's four
share classes varies because each class has different expenses. The total
return figures given assume the reinvestment of all distributions but do not
reflect the deduction of any applicable sales charges. The accompanying chart
compares the Fund's performance to that of the S&P 500.
The Fund's exceptional performance can be attributed primarily to stock
selection and its overweighting in semiconductors and communications equipment.
Investments in these areas that contributed positively to the portfolio
included Nokia, Conexant, QUALCOMM, Uniphase and Vitesse.
The Fund continues to invest in companies that we believe are best positioned
to capitalize on the growth of various sectors within the
<PAGE>
Morgan Stanley Dean Witter Information Fund
Letter to the Shareholders March 31, 2000, continued
communications and information industries. We seek to invest in companies with
proven management, an established market presence, leading-edge technology,
demonstrable demand from customers and strategic relationships or alliances.
On March 31, the Fund held approximately 79 percent of its investments in
information technology, 11 percent in information services, 3 percent in
information distribution and content and the remaining 7 percent in cash
equivalents. We are increasingly concerned about the valuations of several
technology sectors, especially more speculative areas such as Internet
software. During the period, we reduced the Fund's exposure to these sectors,
using the proceeds to increase the portfolio's cash position and add
investments with more valuation support. We continue to overweight the
components subsector, because we believe that the component cycle is in its
early stages and its duration is likely to be longer than widely expected.
LOOKING AHEAD
We believe that the fundamentals underpinning the information and technology
sectors remain robust and that the targeted sectors will outperform over the
long run as technology continues to gain importance as a component of worldwide
spending. We continue to believe that the Internet will continue to play an
increasingly important role in our information economy. Because of this trend,
we plan to continue monitoring this sector closely for promising investment
opportunities.
We appreciate your ongoing support of Morgan Stanley Dean Witter Information
Fund and look forward to continuing to serve your investment needs.
Very truly yours,
/s/ Charles A. Fiumefreddo /s/ Mitchell M. Merin
--------------------------- --------------------------
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
2
<PAGE>
Morgan Stanley Dean Witter Information Fund
Fund Performance March 31, 2000
GROWTH OF $10,000 -- Class B
($ in Thousands)
$55
45
35
25
15
5
$54,299(3) $26,611
November 28, March 31, March 31, March 31, March 31, March 31,
1995 1996 1997 1998 1999 2000
-- Fund -- S&P 500(4)
Past performance is not predictive of future returns. Investment return and
principal value will fluctuate. When you sell fund shares, they may be worth
more or less than their original cost. Performance for Class A, Class C, and
Class D shares will vary from the performance of Class B shares shown above due
to differences in sales charges and expenses.
Average Annual Total Returns
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Shares*
------------------------------------------------------------------
Period Ended 3/31/00
----------------------------
<S> <C> <C>
1 Year 154.62%(1) 149.62%(2)
Since Inception (11/28/95) 47.81%(1) 47.68%(2)
</TABLE>
<TABLE>
<CAPTION>
Class C Shares+
-----------------------------------------------------------------
Period Ended 3/31/00
---------------------------
<S> <C> <C>
1 Year 154.10%(1) 153.10%(2)
Since Inception (7/28/97) 79.09%(1) 79.09%(2)
</TABLE>
<TABLE>
<CAPTION>
Class A Shares**
-----------------------------------------------------------------
Period Ended 3/31/00
---------------------------
<S> <C> <C>
1 Year 155.88%(1) 142.45%(2)
Since Inception (7/28/97) 80.37%(1) 76.77%(2)
</TABLE>
<TABLE>
<CAPTION>
Class D Shares++
------------------------------------------------
Period Ended 3/31/00
---------------------------
<S> <C>
1 Year 156.56%(1)
Since Inception (7/28/97) 80.87%(1)
</TABLE>
---------------
(1) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction
of the maximum applicable sales charge. See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value after the deduction of a 2% CDSC, assuming a complete
redemption on March 31, 2000.
(4) The Standard & Poor's 500 Stock Index (S&P 500) is a broad-based index,
the performance of which is based on the average performance of 500
widely held common stocks. The performance of the Index does not include
any expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
* The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%.
The CDSC declines to 0% after six years.
** The maximum front-end sales charge for Class A is 5.25%.
+ The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
++ Class D shares have no sales charge.
3
<PAGE>
Morgan Stanley Dean Witter Information Fund
Portfolio of Investments March 31, 2000
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------------- ------------------
<S> <C> <C>
COMMON STOCKS (93.9%)
Advertising (0.4%)
200,000 DoubleClick Inc.* ..................... $ 18,725,000
--------------
Cable Television (1.5%)
370,000 AT&T Corp. - Liberty Media
Group (Class A)* ..................... 21,922,500
360,000 EchoStar Communications Corp.
(Class A)* ........................... 28,440,000
113,500 PrimaCom AG (ADR) (Germany)*........... 4,767,000
126,600 United Pan-Europe
Communications NV (Class A)
(ADR) (Netherlands)* ................. 6,187,575
--------------
61,317,075
--------------
Catalog/Specialty
Distribution (0.6%)
397,100 Amazon.com, Inc.* ..................... 26,580,881
--------------
Cellular Telephone (1.4%)
280,000 Nextel Communications, Inc.
(Class A)* ........................... 41,492,500
97,500 Voicestream Wireless Corp.* ........... 12,614,062
130,000 Western Wireless Corp.
(Class A)* ........................... 5,955,625
--------------
60,062,187
--------------
Computer Communications (6.9%)
660,000 3Com Corp.* ........................... 36,671,250
300,000 Brocade Communications
Systems, Inc.* ....................... 53,700,000
1,390,000 Cisco Systems, Inc.* .................. 107,464,375
201,000 Emulex Corp.* ......................... 21,934,125
85,200 Juniper Networks, Inc.* ............... 22,439,550
150,000 Redback Networks, Inc.* ............... 44,512,500
--------------
286,721,800
--------------
Computer Software (13.8%)
195,000 Aspect Development, Inc.* ............. 12,565,312
475,000 BMC Software, Inc.* ................... 23,423,437
127,500 Check Point Software
Technologies Ltd. (Israel)* .......... 21,802,500
660,800 Citrix Systems, Inc.* ................. 43,736,700
700,000 Computer Associates
International, Inc. .................. 41,431,250
935,000 Compuware Corp.* ...................... 19,635,000
231,000 Gensym Corp. .......................... 2,165,625
210,000 i2 Technologies, Inc.* ................ 25,633,125
305,000 iGATE Capital Corp.* .................. 13,744,062
437,300 Mercury Interactive Corp.* ............ 34,601,362
108,500 Micromuse Inc.* ....................... 15,054,375
800,000 Microsoft Corp.* ...................... 85,300,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------------- ------------------
<S> <C> <C>
125,800 NetIQ Corp.* .......................... $ 8,405,012
182,500 New Era of Networks, Inc.* ............ 7,208,750
1,390,000 Oracle Corp.* ......................... 108,420,000
600,000 Parametric Technology Corp.* .......... 12,637,500
115,000 Sapient Corp.* ........................ 9,660,000
242,500 Serena Software, Inc.* ................ 7,729,687
75,000 Siebel Systems, Inc.* ................. 8,953,125
141,900 TIBCO Software, Inc.* ................. 11,564,850
451,050 Veritas Software Corp.* ............... 59,087,550
--------------
572,759,222
--------------
Consumer Electronics/
Appliances (0.2%)
24,800 Sony Corp. (ADR) (Japan) .............. 6,947,100
--------------
Diversified Commercial
Services (0.1%)
83,600 DigitalThink, Inc.* ................... 3,291,750
--------------
Diversified Electronic
Products (1.3%)
140,000 Gemstar International Group Ltd.
(Virgin Islands)* .................... 12,031,250
337,876 JDS Uniphase Corp.* ................... 40,714,058
--------------
52,745,308
--------------
Diversified Financial
Services (1.2%)
283,000 American Express Co. .................. 42,149,312
73,000 Providian Financial Corp. ............. 6,323,625
--------------
48,472,937
--------------
Diversified Manufacturing (0.6%)
500,000 Tyco International Ltd. (Bermuda) 24,937,500
--------------
E.D.P. Peripherals (5.2%)
740,000 EMC Corp.* ............................ 92,500,000
90,000 Lexmark International Group, Inc.
(Class A)* ........................... 9,517,500
1,050,000 Network Appliance, Inc.* .............. 86,821,875
205,600 Qlogic Corp.* ......................... 27,845,950
--------------
216,685,325
--------------
E.D.P. Services (1.1%)
131,000 BEA Systems, Inc.* .................... 9,595,750
750,000 First Data Corp. ...................... 33,187,500
67,900 Netsolve Inc.* ........................ 2,189,775
--------------
44,973,025
--------------
Electronic Components (4.1%)
102,100 Anaren Microwave, Inc.* ............... 9,788,837
632,500 Flextronics International, Ltd.* ...... 44,512,188
42,000 Rambus Inc.* .......................... 12,329,625
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Morgan Stanley Dean Witter Information Fund
Portfolio of Investments March 31, 2000, continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------------- -------------------
<S> <C> <C>
1,060,000 Sanmina Corp.* ....................... $ 71,616,250
830,000 Solectron Corp.* ..................... 33,251,875
--------------
171,498,775
--------------
Electronic Data Processing (5.0%)
420,000 Dell Computer Corp.* ................. 22,653,750
385,000 Gateway, Inc. ........................ 20,405,000
80,000 Hewlett-Packard Co. .................. 10,605,000
402,000 International Business Machines
Corp. ............................... 47,436,000
1,140,000 Sun Microsystems, Inc.* .............. 106,803,750
--------------
207,903,500
--------------
Electronic Production
Equipment (4.7%)
933,600 Applied Materials, Inc.* ............. 87,991,800
239,500 ATMI, Inc.* .......................... 11,286,438
210,000 Cymer, Inc.* ......................... 10,486,875
231,800 Jabil Circuit, Inc.* ................. 10,025,350
350,000 Novellus Systems, Inc.* .............. 19,643,750
184,991 Taiwan Semiconductor
Manufacturing Co. Ltd. (ADR)
(Taiwan)* ........................... 10,544,487
528,500 Teradyne, Inc.* ...................... 43,469,125
--------------
193,447,825
--------------
Internet Services (7.7%)
660,000 America Online, Inc.* ................ 44,385,000
125,000 Ariba, Inc.* ......................... 26,179,688
207,200 Art Technology Group Inc.* ........... 13,597,500
70,000 Caldera Systems, Inc.* ............... 1,640,625
377,100 Digex, Inc.* ......................... 41,810,963
315,000 Exodus Communications, Inc.* ......... 44,257,500
265,600 Kana Communications, Inc.* ........... 17,745,400
140,000 Network Solutions, Inc.
(Class A)* .......................... 21,516,250
42,500 VeriSign, Inc.* ...................... 6,348,438
40,000 VerticalNet, Inc. .................... 5,420,000
221,500 Viant Corp.* ......................... 7,434,094
19,400 Vignette Corp.* ...................... 3,108,850
94,000 Vitria Technology, Inc.* ............. 9,470,500
446,000 Yahoo! Inc.* ......................... 76,405,375
--------------
319,320,183
--------------
Major U.S. Telecommunications (0.5%)
310,000 U.S. West, Inc. ...................... 22,513,750
--------------
Office Equipment/Supplies (0.5%)
820,000 Xerox Corp. .......................... 21,320,000
--------------
Other Consumer Services (0.4%)
90,000 eBay, Inc.* .......................... 15,834,375
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------------- -------------------
<S> <C> <C>
Other Telecommunications (1.2%)
90,000 COLT Telecom Group PLC (ADR)
(United Kingdom)* ................... $ 17,595,000
250,000 Global Crossing Ltd. (Bermuda)*....... 10,234,375
167,300 NEXTLINK Communications, Inc.
(Class A)* .......................... 20,682,463
--------------
48,511,838
--------------
Recreational Products/Toys (0.5%)
310,000 Electronic Arts Inc.* ................ 22,048,750
--------------
Semiconductors (20.0%)
714,000 Analog Devices, Inc.* ................ 57,521,625
644,700 Applied Micro Circuits Corp.* ........ 96,705,000
200,000 Broadcom Corp. (Class A)* ............ 48,575,000
265,000 Conexant Systems, Inc.* .............. 19,063,438
240,000 Cypress Semiconductor Corp.* ......... 11,835,000
655,000 Intel Corp. .......................... 86,337,188
230,000 Linear Technology Corp. .............. 12,621,250
1,276,000 LSI Logic Corp.* ..................... 92,669,500
700,000 Maxim Integrated Products, Inc.*...... 49,743,750
165,000 Micron Technology, Inc.* ............. 20,790,000
230,000 PMC - Sierra, Inc.* .................. 46,833,750
227,500 SDL, Inc.* ........................... 48,443,281
348,300 STMicroelectronics NV
(Netherlands) ....................... 65,197,406
600,000 Texas Instruments, Inc. .............. 96,000,000
115,000 TranSwitch Corp.* .................... 11,047,188
240,000 Vitesse Semiconductor Corp.* ......... 23,085,000
530,000 Xilinx, Inc.* ........................ 43,857,500
--------------
830,325,876
--------------
Telecommunication Equipment (15.0%)
730,000 ADC Telecommunications, Inc.* ........ 39,328,750
90,000 CIENA Corp.* ......................... 11,345,625
540,600 Comverse Technology, Inc.* ........... 102,139,613
410,000 Corning Inc. ......................... 79,540,000
72,500 Ditech Communications Corp. .......... 7,689,531
12,034 Hybrid Networks, Inc.* ............... 159,451
610,000 Motorola, Inc. ....................... 86,848,750
530,000 Nokia Corp. (ADR) (Finland) .......... 115,142,500
919,000 Nortel Networks Corp. (Canada) ....... 115,794,000
80,000 QUALCOMM Inc.* ....................... 11,935,000
182,200 Scientific - Atlanta, Inc. ........... 11,558,313
200,000 Tekelec* ............................. 7,425,000
400,000 Tellabs, Inc.* ....................... 25,175,000
122,500 Visual Networks, Inc. ................ 6,951,875
--------------
621,033,408
--------------
TOTAL COMMON STOCKS
(Identified Cost $2,662,006,099)...... 3,897,977,390
--------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Morgan Stanley Dean Witter Information Fund
Portfolio of Investments March 31, 2000, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
----------- ------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (a) (2.8%)
U.S. GOVERNMENT AGENCY
$ 115,000 Federal Home Loan Mortgage
Corp. 6.05% due 04/03/00
(Amortized Cost $114,961,347)..... $ 114,961,347
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $2,776,967,446) (b)..... 96.7% 4,012,938,737
OTHER ASSETS IN EXCESS OF
LIABILITIES ............................. 3.3 138,296,737
----- --------------
NET ASSETS .............................. 100.0% $4,151,235,474
===== ==============
</TABLE>
--------------------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) 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
$1,306,460,447 and the aggregate gross unrealized depreciation
is $70,489,156, resulting in net unrealized appreciation of
$1,235,971,291.
See Notes to Financial Statements
6
<PAGE>
Morgan Stanley Dean Witter Information Fund
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments in securities, at value
(identified cost $2,776,967,446)................ $4,012,938,737
Cash .............................................. 3,226,601
Receivable for:
Investments sold ............................. 239,844,697
Shares of beneficial interest sold ........... 29,099,978
Dividends .................................... 571,972
Deferred organizational expenses .................. 23,661
Prepaid expenses and other assets ................. 249,760
--------------
TOTAL ASSETS .................................. 4,285,955,406
--------------
LIABILITIES:
Payable for:
Investments purchased ........................ 124,008,470
Shares of beneficial interest repurchased..... 5,172,238
Investment management fee .................... 2,687,158
Plan of distribution fee ..................... 2,177,350
Accrued expenses and other payables ............... 674,716
--------------
TOTAL LIABILITIES ............................. 134,719,932
--------------
NET ASSETS .................................... $4,151,235,474
==============
COMPOSITION OF NET ASSETS:
Paid-in-capital ................................... $2,507,876,445
Net unrealized appreciation ....................... 1,235,971,291
Accumulated undistributed net realized gain ....... 407,387,738
--------------
NET ASSETS .................................... $4,151,235,474
==============
CLASS A SHARES:
Net Assets ........................................ $ 128,324,993
Shares Outstanding (unlimited authorized, $.01
par value) ..................................... 3,114,417
NET ASSET VALUE PER SHARE ..................... $ 41.20
==============
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net asset
value) .................................... $ 43.48
==============
CLASS B SHARES:
Net Assets ........................................ $3,799,843,503
Shares Outstanding (unlimited authorized, $.01
par value) ..................................... 94,116,001
NET ASSET VALUE PER SHARE ..................... $ 40.37
==============
CLASS C SHARES:
Net Assets ........................................ $ 205,073,320
Shares Outstanding (unlimited authorized, $.01
par value) ..................................... 5,093,661
NET ASSET VALUE PER SHARE ..................... $ 40.26
==============
CLASS D SHARES:
Net Assets ........................................ $ 17,993,658
Shares Outstanding (unlimited authorized, $.01
par value) ..................................... 432,883
NET ASSET VALUE PER SHARE ..................... $ 41.57
==============
</TABLE>
STATEMENT OF OPERATIONS
For the year ended March 31, 2000
<TABLE>
<CAPTION>
NET INVESTMENT LOSS:
<S> <C>
INCOME
Interest .......................................... $ 3,781,934
Dividends (net of $7,578 foreign withholding
tax) ........................................... 1,532,618
--------------
TOTAL INCOME .................................. 5,314,552
--------------
EXPENSES
Investment management fee ......................... 12,563,948
Plan of distribution fee (Class A shares) ......... 91,803
Plan of distribution fee (Class B shares) ......... 11,092,274
Plan of distribution fee (Class C shares) ......... 657,784
Transfer agent fees and expenses .................. 1,527,854
Registration fees ................................. 718,798
Custodian fees .................................... 185,834
Shareholder reports and notices ................... 144,150
Professional fees ................................. 82,762
Organizational expenses ........................... 35,938
Trustees' fees and expenses ....................... 14,613
Other ............................................. 11,348
--------------
TOTAL EXPENSES ................................ 27,127,106
--------------
NET INVESTMENT LOSS ........................... (21,812,554)
--------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain/loss on:
Investments .................................... 535,495,719
Foreign exchange transactions .................. (5,352)
--------------
NET GAIN ...................................... 535,490,367
--------------
Net change in unrealized appreciation ............. 1,129,252,078
--------------
NET GAIN ...................................... 1,664,742,445
--------------
NET INCREASE ...................................... $1,642,929,891
==============
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Morgan Stanley Dean Witter Information Fund
Financial Statements, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss .................................. $ (21,812,554) $ (4,787,630)
Net realized gain .................................... 535,490,367 121,979,309
Net change in unrealized appreciation ................ 1,129,252,078 44,883,484
-------------- ------------
NET INCREASE ...................................... 1,642,929,891 162,075,163
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAIN:
Class A shares ....................................... (3,132,818) (70,594)
Class B shares ....................................... (190,341,434) (35,107,622)
Class C shares ....................................... (6,306,868) (186,602)
Class D shares ....................................... (620,858) (143,401)
-------------- ------------
TOTAL DISTRIBUTIONS ............................... (200,401,978) (35,508,219)
-------------- ------------
Net increase from transactions in shares of beneficial
interest ........................................... 2,108,131,854 204,706,149
-------------- ------------
NET INCREASE ...................................... 3,550,659,767 331,273,093
NET ASSETS:
Beginning of period .................................. 600,575,707 269,302,614
-------------- ------------
END OF PERIOD ..................................... $4,151,235,474 $600,575,707
============== ============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Information 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
long-term capital appreciation. The Fund seeks to achieve its investment
objective by investing primarily in common stocks and securities convertible
into common stocks of domestic and foreign companies which are involved in the
communications and information industry. The Fund was organized as a
Massachusetts business trust on December 8, 1994 and commenced operations on
November 28, 1995. On July 28, 1997, the Fund converted to a multiple class
share structure.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year,
six years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS - (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price
(in cases where securities are traded on more than one exchange, the securities
are valued on the exchange designated as the primary market pursuant to
procedures adopted by the Trustees); (2) all other portfolio securities for
which over-the-counter market quotations are readily available are valued at
the latest available bid price prior to the time of valuation; (3) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager") that sale or bid prices are not reflective of a security's market
value, portfolio securities are valued at their fair value as determined in
good faith under procedures established by and under the general supervision of
the Trustees; and (4) 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.
9
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000, continued
B. ACCOUNTING FOR INVESTMENTS - Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends on foreign securities which are recorded as soon
as the Fund is informed after the ex-dividend date. Discounts are accreted over
the life of the respective securities. Interest income is accrued daily.
C. MULTIPLE CLASS ALLOCATIONS - Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date
such items are recognized. Distribution fees are charged directly to the
respective class.
D. FOREIGN CURRENCY TRANSLATION - The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward foreign
currency contracts are translated at the exchange rates prevailing at the end
of the period; and (2) purchases, sales, income and expenses are translated at
the exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses
included in realized and unrealized gain/loss are included in or are a
reduction of ordinary income for federal income tax purposes. The Fund does not
isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the changes in the market prices of
the securities.
E. FORWARD FOREIGN CURRENCY CONTRACTS - The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates.
The resultant unrealized exchange gains and losses are included in the
Statement of Operations as unrealized foreign currency gain or loss and in the
Statement of Assets and Liabilities as part of the related foreign currency
denominated asset or liability. The Fund records realized gains or losses on
delivery of the currency or at the time the forward contract is extinguished
(compensated) by entering into a closing transaction prior to delivery.
F. FEDERAL INCOME TAX STATUS - It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - The Fund records dividends and
distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which
may differ from generally accepted accounting principles. These "book/tax"
differences are either
10
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000, continued
considered temporary or permanent in nature. To the extent these differences
are permanent in nature, such amounts are reclassified within the capital
accounts based on their federal tax-basis treatment; temporary differences do
not require reclassification. Dividends and distributions which exceed net
investment income and net realized capital gains for financial reporting
purposes but not for tax purposes are reported as dividends in excess of net
investment income or distributions in excess of net realized capital gains. To
the extent they exceed net investment income and net realized capital gains for
tax purposes, they are reported as distributions of paid-in-capital.
H. ORGANIZATIONAL EXPENSES - The Investment Manager paid the organizational
expenses of the Fund in the amount of approximately $179,000 which have been
reimbursed for the full amount thereof. Such expenses have been deferred and
are being amortized on the straight-line method over a period not to exceed
five years from commencement of operations.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.75% to the portion of daily net assets not exceeding
$500 million; and 0.725% to the portion of daily net assets exceeding $500
million.
3. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager. The Fund has
adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A - up
to 0.25% of the average daily net assets of Class A; (ii) Class B - 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Fund (not including reinvestment of dividend or
capital gain distributions) less the average daily aggregate net asset value of
the Class B shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or waived; or (b) the average daily net
assets of Class B; and (iii) Class C - up to 1.0% of the average daily net
assets of Class C.
In the case of Class 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
11
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000, continued
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 totaled $53,966,158 at March 31,
2000.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the year ended March 31, 2000, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.24% and
1.0%, respectively.
The Distributor has informed the Fund that for the year ended March 31, 2000,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $7,888, $1,468,385,
and $64,952, respectively and received $943,374 in front-end sales charges from
sales of the Fund's Class A shares. The respective shareholders pay such
charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities,
excluding short-term investments, for the year ended March 31, 2000 aggregated
$6,354,085,295 and $4,679,040,398, respectively.
For the year ended March 31, 2000, the Fund incurred brokerage commissions of
$152,904 with Dean Witter Reynolds Inc., an affiliate of the Investment Manager
and Distributor, for portfolio transactions executed on behalf of the Fund.
For the year ended March 31, 2000, the Fund incurred brokerage commissions of
$211,375 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager and Distributor, for portfolio transactions executed on behalf of the
Fund.
At March 31, 2000, the Fund's payable for investments purchased included
unsettled trades with the following affiliates of the Fund: Morgan Stanley Dean
Witter American Opportunities Fund for $16,438,246, Morgan Stanley Dean Witter
Aggressive Equity Fund for $1,892,625, Morgan Stanley Dean Witter Variable
Investment Series - Equity Portfolio for $604,800, Morgan Stanley Dean Witter
Select Dimensions Investment Series - American Opportunities Portfolio for
$1,717,100 and Morgan Stanley Dean Witter Variable Investment Series -
Aggressive Equity Portfolio for $65,979.
12
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000, continued
At March 31, 2000, the Fund's receivable for investments sold included
unsettled trades with the following affiliates of the Fund: Morgan Stanley Dean
Witter Developing Growth Securities for $663,750 and Morgan Stanley Dean Witter
Select Dimensions Investment Series - Developing Growth Portfolio for $66,375.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At March 31, 2000, the Fund had
transfer agent fees and expenses payable of approximately $2,500.
5. FEDERAL INCOME TAX STATUS
As of March 31, 2000, the Fund had temporary book/tax differences attributable
to capital loss deferrals on wash sales and permanent book/tax differences
primarily attributable to a net operating loss. To reflect reclassifications
arising from the permanent differences, paid-in-capital was charged $35,938,
accumulated undistributed net realized gain was charged $21,776,616 and net
investment loss was credited $21,812,554.
6. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward
contracts") to facilitate settlement of foreign currency denominated portfolio
transactions or to manage foreign currency exposure associated with foreign
currency denominated securities.
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 March 31, 2000, there were no outstanding forward foreign currency
contracts.
13
<PAGE>
Morgan Stanley Dean Witter Information Fund
Notes to Financial Statements March 31, 2000, continued
7. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold .................................. 4,327,208 $ 134,454,736 794,860 $ 13,534,680
Reinvestment of distributions ......... 118,264 2,996,824 4,724 68,291
Redeemed .............................. (1,604,255) (45,382,099) (541,066) (9,175,146)
---------- -------------- -------- --------------
Net increase - Class A ................ 2,841,217 92,069,461 258,518 4,427,825
---------- -------------- -------- --------------
CLASS B SHARES
Sold .................................. 72,540,951 2,167,348,626 20,256,885 326,607,844
Reinvestment of distributions ......... 7,684,962 178,283,634 2,344,073 32,974,532
Redeemed .............................. (16,708,903) (477,466,010) (11,182,276) (169,607,131)
----------- -------------- ----------- --------------
Net increase - Class B ................ 63,517,010 1,868,166,250 11,418,682 189,975,245
----------- -------------- ----------- --------------
CLASS C SHARES
Sold .................................. 5,203,329 161,643,866 902,795 14,998,830
Reinvestment of distributions ......... 246,217 6,042,246 12,281 175,587
Redeemed .............................. (982,199) (29,203,497) (306,601) (5,003,784)
----------- -------------- ----------- --------------
Net increase - Class C ................ 4,467,347 138,482,615 608,475 10,170,633
----------- -------------- ----------- --------------
CLASS D SHARES
Sold .................................. 874,982 24,335,255 370,541 5,507,461
Reinvestment of distributions ......... 19,493 516,286 691 9,984
Redeemed .............................. (587,816) (15,438,013) (349,365) (5,384,999)
----------- -------------- ----------- --------------
Net increase - Class D ................ 306,659 9,413,528 21,867 132,446
----------- -------------- ----------- --------------
Net increase in Fund .................. 71,132,233 $2,108,131,854 12,307,542 $ 204,706,149
=========== ============== =========== ==============
</TABLE>
14
<PAGE>
Morgan Stanley Dean Witter Information 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 YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $ 19.23 $ 14.02 $ 11.43
-------- ------- -------
Income (loss) from investment operations:
Net investment loss .............................. ( 0.27) ( 0.11) ( 0.08)
Net realized and unrealized gain ................. 26.41 7.04 2.67
-------- ------- -------
Total income from investment operations ........... 26.14 6.93 2.59
-------- ------- -------
Less distributions from net realized gain ......... ( 4.17) ( 1.72) -
-------- ------- -------
Net asset value, end of period .................... $ 41.20 $ 19.23 $ 14.02
======== ======= =======
TOTAL RETURN+ ..................................... 155.88 % 54.33 % 22.66 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 1.13 %(3) 1.24 %(3) 1.27 %(2)
Net investment loss ............................... (0.82)%(3) ( 0.74)%(3) ( 0.93)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $128,325 $5,253 $ 206
Portfolio turnover rate ........................... 282 % 419 % 218 %
</TABLE>
-------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
15
<PAGE>
Morgan Stanley Dean Witter Information Fund
Financial Highlights, continued
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MARCH 31,
-----------------------------------------------------------------
2000++ 1999++ 1998**++ 1997
------------------ ------------------ ------------- -------------
<S> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period ............... $ 18.99 $ 13.94 $ 8.94 $ 10.67
---------- -------- -------- --------
Income (loss) from investment operations:
Net investment loss ............................... (0.37) (0.22) (0.18) (0.13)
Net realized and unrealized gain (loss) ........... 25.92 6.99 5.18 (1.60)
---------- -------- -------- --------
Total income (loss) from investment operations ..... 25.55 6.77 5.00 (1.73)
---------- -------- -------- --------
Less dividends and distributions:
In excess of net investment income ................ - - - -
From net realized gain ............................ (4.17) (1.72) - -
---------- -------- -------- --------
Total dividends and distributions .................. (4.17) (1.72) - -
---------- -------- -------- --------
Net asset value, end of period ..................... $ 40.37 $ 18.99 $ 13.94 $ 8.94
========== ======== ======== ========
TOTAL RETURN+ ...................................... 154.62 % 53.44 % 56.10 % (16.31)%
RATIOS TO AVERAGE NET ASSETS:
Expenses ........................................... 1.58 %(3) 1.95 %(3) 2.05 % 2.01 %
Net investment loss ................................ (1.27)%(3) (1.45)%(3) (1.54)% (1.16)%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ............ $3,799,844 $580,994 $267,384 $213,726
Portfolio turnover rate ............................ 282 % 419 % 218 % 132 %
<CAPTION>
FOR THE PERIOD
NOVEMBER 28, 1995*
THROUGH
MARCH 31, 1996
-------------------
<S> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period ............... $ 10.00
--------
Income (loss) from investment operations:
Net investment loss ............................... (0.01)
Net realized and unrealized gain (loss) ........... 0.69
--------
Total income (loss) from investment operations ..... 0.68
--------
Less dividends and distributions:
In excess of net investment income ................ (0.01)
From net realized gain ............................ -
--------
Total dividends and distributions .................. (0.01)
--------
Net asset value, end of period ..................... $ 10.67
========
TOTAL RETURN+ ...................................... 6.77 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ........................................... 2.31 %(2)
Net investment loss ................................ (0.51)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ............ $207,321
Portfolio turnover rate ............................ 8 %(1)
</TABLE>
--------------
* 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.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
16
<PAGE>
Morgan Stanley Dean Witter Information Fund
Financial Highlights, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $ 18.98 $ 13.94 $ 11.43
-------- ------- -------
Income (loss) from investment operations:
Net investment loss .............................. (0.49) (0.24) (0.14)
Net realized and unrealized gain ................. 25.94 7.00 2.65
-------- ------- -------
Total income from investment operations ........... 25.45 6.76 2.51
-------- ------- -------
Less distributions from net realized gain ......... (4.17) (1.72) -
-------- ------- -------
Net asset value, end of period .................... $ 40.26 $ 18.98 $ 13.94
======== ======= =======
TOTAL RETURN+ ..................................... 154.10 % 53.36 % 21.96 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 1.89 %(3) 2.01 %(3) 2.05 %(2)
Net investment loss ............................... (1.58)%(3) (1.51)%(3) (1.72)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $205,073 $11,890 $ 249
Portfolio turnover rate ........................... 282 % 419 % 218 %
</TABLE>
--------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
17
<PAGE>
Morgan Stanley Dean Witter Information Fund
Financial Highlights, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28,1997*
ENDED ENDED THROUGH
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period .............. $ 19.33 $ 14.03 $ 11.43
------- ------- -------
Income (loss) from investment operations:
Net investment loss .............................. (0.18) (0.08) (0.07)
Net realized and unrealized gain ................. 26.59 7.10 2.67
------- ------- -------
Total income from investment operations ........... 26.41 7.02 2.60
------- ------- -------
Less distributions from net realized gain ......... (4.17) (1.72) -
------- ------- -------
Net asset value, end of period .................... $ 41.57 $ 19.33 $ 14.03
======= ======= =======
TOTAL RETURN+ ..................................... 156.56 % 54.96 % 22.75 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 0.89 %(3) 1.01 %(3) 1.04 %(2)
Net investment loss ............................... (0.58)%(3) (0.51)%(3) (0.82)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ........... $17,994 $2,440 $1,464
Portfolio turnover rate ........................... 282 % 419 % 218 %
</TABLE>
--------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of
the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.
See Notes to Financial Statements
18
<PAGE>
Morgan Stanley Dean Witter Information Fund
Report of Independent Accountants
TO THE SHAREHOLDERS AND TRUSTEES
OF MORGAN STANLEY DEAN WITTER INFORMATION FUND
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Morgan Stanley Dean Witter
Information Fund (the "Fund") at March 31, 2000, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods indicated, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United States, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at March 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
May 9, 2000
2000 FEDERAL TAX NOTICE (unaudited)
During the year ended March 31, 2000, the Fund paid to shareholders
$0.46 per share from long-term capital gains.
19
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
Guy G. Rutherford, Jr.
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanely Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
This report is submitted for the general information of shareholders
of the Fund. For more detailed information about the Fund, its officers
and trustees, fees, expenses and other pertinent information, please see
the prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
Read the prospectus carefully before investing.
Morgan Stanley Dean Witter Distributors, Inc., member NASD.
MORGAN STANLEY
DEAN WITTER
INFORMATION FUND
[GRAPHIC OMITTED]
ANNUAL REPORT
MARCH 31, 2000
