DEAN WITTER TAX-EXEMPT SECURITIES TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
===============================================================================
We are pleased to present the annual report on the operations of Dean
Witter Tax-Exempt Securities Trust for the fiscal year ended December 31, 1993.
MARKET CONDITIONS
Last year set records for municipals. Underwritings of new municipal
bond issues reached an all-time high. Yields fell to an all-time low of 5.41
percent in October, as measured by The Bond Buyer Revenue Bond Index. The Index
began the year at 6.40 percent and ended December at 5.52 percent. In addition,
the passage and signing during the summer of the Clinton administration's
Revenue Reconciliation Act made higher marginal taxes a reality. Demand for
tax-exempt bonds was stimulated by the new top federal tax rate of 39.6 percent
(36%+a 3.6% surtax).
New-issue underwriting totaled $290 billion in 1993 increasing 23
percent over the previous record of last year. Refunding issues, which are used
by state and local governments to refinance higher coupon debt, accounted for
an unprecedented two-thirds of total volume. Underwritings backed by insurance
shared 37 percent of the market.
DEAN WITTER TAX-EXEMPT MUNICIPAL SECURITIES TRUST
GROWTH OF $10,000
($ IN THOUSANDS)
LEHMAN BROTHERS
DATE TOTAL MUNICIPAL BOND
INDEX
- -------------------------------------------------------------------
December 31, 1983 $ 9,600 $10,000
December 31, 1984 $10,499 $11,055
December 31, 1985 $12,741 $13,269
December 31, 1986 $15,311 $15,832
December 31, 1987 $15,090 $16,071
December 31, 1988 $17,055 $17,703
December 31, 1989 $18,864 $19,614
December 31, 1990 $19,968 $21,043
December 31, 1991 $22,506 $23,598
December 31, 1992 $24,552 $25,680
December 31, 1993 $27,309 (3) $28,833
- -------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------------
Non-Standard 11.23 (1) 9.87 (1) 11.02 (1)
Standard (-FESC) 6.78 (2) 8.98 (2) 10.57 (2)
- -------------------------------------------------------------
_____Fund _____Lehman (4)
_____________________________
Past performance is not predictive of future returns.
(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 front-end sales charge (4%). See the Fund's
current prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 4% front-end sales charge,
assuming a complete redemption on December 31, 1993.
(4) The Lehman Brothers Municipal Bond Index tracks the performance
of municipal bonds with maturities of 2 years or greater and a minimum
credit rating of Baa or BBB, as rated by Moody's Investors Service, Inc.
or Standard& Poor's Corp. The Index does not include any expenses, fees,
or charges.
PERFORMANCE
Dean Witter Tax-Exempt Securities Trust's total return for the year
ended December 31, 1993 was 11.23 percent (not including the deduction of the
maximum applicable front-end sales charge; see the chart for further details).
Since inception the Fund has provided shareholders with an attractive average
annual total return of 10.78 percent. The Fund's net asset value per share
increased $0.53 from $11.88 to $12.41. Tax free distributions totaling $0.77
per share were paid during the year. At year end, the Fund's net assets totaled
$1.6 billion. The accompanying chart illustrates the performance of a $10,000
investment in the Fund from inception (March 27, 1980) through the fiscal year
ended December 31, 1993 versus the performance of a similar investment in the
Lehman Brothers Municipal Bond Index.
<PAGE>
INVESTMENT STRATEGY
During the year, the Fund continued to meet its tax-free income and
preservation of capital objectives. The Fund was invested in long-term bonds
throughout the year with only two to five percent of assets in short-term
maturities. During the year refunded and other high coupon bonds with
diminished call protection were sold. This reduced the Trust's exposure to
bonds with redemption risk in 1995 and 1996 from 38 percent to 26 percent of
the portfolio. New purchases emphasized quality with a preference for
investment-grade issues rated "A" or better. The Fund's average credit rating
remained "Aa" as rated by Moody's Investors Service, Inc. or "AA" as rated by
Standard & Poor's Corp. The Fund's average maturity and call protection were 18
years and 7 years, respectively.
The four largest municipal sectors represented in the portfolio,
transportation facilities, electric, hospital and industrial
development/pollution control revenue bonds, comprised 47 percent of net
assets. Bonds subject to the federal alternative minimum income tax (AMT)
represented 14 percent of net assets.
LOOKING AHEAD
In 1994, the amount of municipal bonds outstanding is expected to
decline. New-issue volume is estimated to drop by 30 percent to $200 billion as
state and local governments offer fewer refundings. Bond maturities and
redemptions are expected to exceed new issuance by more than $60 billion. This
relative lack of supply should strengthen municipal performance relative to
U.S. Treasury securities.
The Fund plans to sell older, higher-coupon bonds with diminished call
protection. Purchases are expected to favor high-grade general obligations and
essential-purpose revenue bonds such as electric, water & sewer and
transportation issues.
Over the past few years, the Fund's level of dividend payments has
trended lower as interest rates have declined. This dividend pattern is
expected to extend through 1994. However, the Fund should continue to provide
competitive tax-free distribution yields as it has historically.
We appreciate your support of Dean Witter Tax-Exempt Securities Trust
and look forward to continuing to serve your investment needs.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (94.9%)
GENERAL OBLIGATION (8.1%)
$ 10,000 Birmingham, Alabama, Cap Impr & Refg Ser 1985
(Crossover Refunded)............................................ 9.80 % 10/ 1/10 $ 11,252,400
North Slope Borough, Alaska,
7,930 Refg 1985 Ser C................................................. 10.40 6/30/95 8,378,124
5,015 Refg 1984 Ser C................................................. 10.50 6/30/96 5,300,905
3,500 Refg 1990 Ser I (MBIA Insured).................................. 0.00 6/30/99 2,746,345
3,900 Ser 1992 A (MBIA Insured)....................................... 0.00 6/30/03 2,478,645
5,000 Ser 1992 A Conv (MBIA Insured).................................. 0.00 6/30/03 5,187,500
4,000 Connecticut, College Savings 1989 Ser A.......................... 0.00 7/ 1/08 1,881,440
10,000 Broward County, Florida, Refg Ser 1986 (Prerefunded)............. 7.875 1/ 1/12 11,229,600
Florida Board of Education, Cap Outlay
5,000 Ser 1989 A Refg................................................. 5.00 6/ 1/24 4,759,850
6,000 Ser 1989 A Refg................................................. 6.00 6/ 1/25 6,238,740
Massachusetts,
27,000 Fiscal Recovery 1990 Ser A...................................... 7.25 6/ 1/96 29,286,360
1,500 Refg 1992 Ser B................................................. 6.50 8/ 1/08 1,705,800
11,500 Refg 1993 Ser A................................................. 5.50 2/ 1/11 11,565,780
4,000 Clark County, Nevada, Transportation Ser 1992 A (AMBAC Insured).. 6.50 6/ 1/17 4,633,280
New York City, New York,
12,000 1990 Ser D...................................................... 6.00 8/ 1/07 12,118,200
10,000 1990 Ser D...................................................... 6.00 8/ 1/08 10,069,800
-------- -------------
126,345 128,832,769
-------- -------------
EDUCATIONAL FACILITIES REVENUE (6.2%)
10,000 Maryland Health & Higher Educational Facilities Authority,
The Johns Hopkins University Ser 1985 (Prerefunded)............. 9.25 7/ 1/15 11,087,100
3,000 University of Maryland, 1989 Refg Ser A.......................... 7.20 10/ 1/09 3,436,050
Massachusetts Health & Educational Facilities Authority,
5,000 Boston University Ser G (Prerefunded)........................... 8.875 7/ 1/15 5,489,950
3,500 Boston University Ser L RIBS (MBIA Insured)..................... 10.45 + 10/ 1/31 4,274,375
22,500 New Hampshire Higher Educational & Health Facilities Authority,
Dartmouth College Ser 1993...................................... 5.375 6/ 1/23 22,449,150
2,000 New Jersey Economic Development Authority, The Seeing Eye Inc 1991 7.30 4/ 1/11 2,185,480
11,000 New York State, City University--John Jay College COPs........... 7.25 8/15/07 11,992,530
New York State Dormitory Authority, State University
5,000 Ser 1989 B...................................................... 0.00 5/15/02 3,200,550
21,000 Ser 1990 B...................................................... 7.00 5/15/16 23,819,250
2,000 Pennsylvania Higher Educational Facilities Authority, University of
Pennsylvania Ser 1987........................................... 6.625 1/ 1/17 2,139,440
6,725 University of Texas, Permanent University Fund Refg Ser 1985
(Prerefunded)................................................... 9.00 7/ 1/05 7,300,055
-------- -------------
91,725 97,373,930
-------- -------------
ELECTRIC REVENUE (12.1%)
Municipal Electric Authority of Georgia,
13,500 Power Ser K (Prerefunded)....................................... 6.50 1/ 1/07 14,012,325
10,000 Fifth Crossover Ser............................................. 6.50 1/ 1/17 11,467,700
6,665 Massachusetts Municipal Wholesale Electric Company, Power
1987 Ser A (Prerefunded)........................................ 8.75 7/ 1/18 7,853,503
Nebraska Public Power District, Power
7,000 Ser 1993........................................................ 6.125 1/ 1/15 7,446,600
25,000 1993 Ser C...................................................... 5.00 1/ 1/17 23,913,500
15,000 New York State Power Authority, Gen Pur Ser CC................... 5.25 1/ 1/18 14,938,950
North Carolina Eastern Municipal Power Agency,
7,500 Refg Ser 1993 B................................................. 6.25 1/ 1/12 7,796,325
10,000 Refg Ser 1986 A (Prerefunded)................................... 7.75 1/ 1/15 11,120,900
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993 (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
$ 5,000 North Carolina Municipal Power Agency #1, Catawba Ser 1988....... 6.00 % 1/ 1/15 $ 5,099,400
Puerto Rico Electric Power Authority, Power
6,000 Ser N........................................................... 5.00 7/ 1/12 5,803,080
20,000 Ser O........................................................... 0.00 7/ 1/17 5,211,400
6,000 Austin, Texas, Comb Utilities Refg Ser 1993 A.................... 5.75 11/15/13 6,074,400
Intermountain Power Agency, Utah,
25,000 Refg 1985 Ser H GAINS (Prerefunded)............................. 0.00 7/ 1/12 20,925,000
15,000 Refg 1985 Ser H................................................. 6.00 7/ 1/21 15,173,100
5,000 Refg 1985 Ser I................................................. 6.00 7/ 1/21 5,057,700
8,000 Refg 1993 Ser A................................................. 5.00 7/ 1/23 7,496,800
8,000 Lewis County Public Utility District #1, Washington, Cowlitz Falls
Hydro Refg Ser 1993............................................. 5.50 1/ 1/13 8,047,440
13,000 Snohomish County Public Utilities District #1, Washington,
1993 Ser (FGIC Insured)......................................... 6.00 1/ 1/18 13,607,490
-------- -------------
205,665 191,045,613
-------- -------------
HOSPITAL REVENUE (10.4%)
3,000 Baxter County, Arkansas, Baxter County Regional Hospital Inc
Impr & Refg Ser 1992............................................ 7.50 9/ 1/21 3,289,170
10,000 University of California, UCLA Medical Center Ser 1986........... 6.90 12/ 1/16 10,847,200
6,000 Connecticut Health & Educational Facilities Authority,
Yale--New Haven Hospital Ser F (MBIA Insured)................... 7.10 7/ 1/25 6,923,160
10,000 Alachua County Health Facilities Authority, Florida, Shands Hospital
at the University of Florida Ser 1985 (Prerefunded)............. 8.00 12/ 1/15 10,693,200
8,350 Altamonte Springs Health Facilities Authority, Florida,
Adventist Health/Sunbelt Inc Ser 1984 (MBIA Insured) (Prerefunded) 7.90 10/ 1/14 9,405,105
3,500 Maine Health & Higher Educational Facilities Authority, Maine Medical
Center Ser 1986 (Prerefunded)................................... 7.375 10/ 1/13 3,914,960
Massachusetts Health & Educational Facilities Authority,
8,000 Brigham & Women's Hospital Ser B (Prerefunded).................. 7.125 7/ 1/07 8,692,320
1,500 Malden Hospital--FHA Insured Mtge Ser A......................... 5.00 8/ 1/16 1,405,425
9,000 New England Medical Center Ser G (MBIA Insured) (a)............. 5.375 7/ 1/24 8,873,820
2,570 New Ulm, Minnesota, Health Central Refg 1985 Ser C............... 10.00 10/ 1/14 2,906,336
Rochester, Minnesota, Mayo Foundation/Mayo Medical Center
7,000 Ser 1992 I...................................................... 5.75 11/15/21 7,245,490
3,700 Ser 1992 F...................................................... 6.25 11/15/21 3,981,014
18,000 Missouri Health & Educational Facilities Authority,
Barnes-Jewish Inc/Christian Health Services Ser 1993 A.......... 5.25 5/15/14 17,537,220
12,000 Charlotte-Mecklenburg County Hospital Authority, North Carolina,
Ser 1992........................................................ 6.00 1/ 1/22 12,616,920
4,000 Cuyahoga County, Ohio, The Cleveland Clinic Foundation
Refg Ser 1988 A................................................. 8.00 12/ 1/15 4,544,680
6,250 Philadelphia Hospital & Higher Education Facilities Authority,
Pennsylvania, Temple University Hospital 1993 Ser A............. 6.625 11/15/23 6,693,062
8,680 North Central Texas Health Facilities Development Corporation,
University Medical Center Inc Ser 1987.......................... 7.75 4/ 1/17 9,206,442
5,000 Salt Lake City, Utah, IHC Hospital Inc Ser of 1983 (ETM)......... 5.00 6/ 1/15 4,877,750
Fairfax County Industrial Development Authority, Virginia,
14,000 Fairfax Hospital System Inc/Inova Health Ser 1991 C RITES
(Prerefunded)................................................... 10.527+ 8/29/23 18,480,000
7,500 Inova Health System Foundation Refg Ser 1993 A.................. 5.25 8/15/19 7,253,400
5,000 University of Virginia, Refg Ser E............................... 6.00 6/ 1/13 5,124,800
-------- -------------
153,050 164,511,474
-------- -------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE (10.5%)
3,000 Atlanta, Georgia, Delta Air Lines Inc Ser 1989 B (AMT)............. 6.25 12/ 1/19 2,928,390
15,000 Jefferson County, Kentucky, Louisville Gas & Electric Co 1993 Ser B 5.625 8/15/19 15,222,750
4,000 Maryland Industrial Development Financing Authority, Medical
Waste Assocs LP 1989 Ser (AMT).................................. 8.75 11/15/10 3,000,000
10,000 Bass Brook, Minnesota, Minnesota Power & Light Co Refg Ser 1992.. 6.00 7/ 1/22 10,330,200
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993 (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
$ 7,500 Becker, Minnesota, Northern States Power Co Ser A 1989........... 6.80 % 4/ 1/07 $ 8,360,625
18,000 Claiborne County, Mississippi, Middle South Energy Inc Ser C..... 9.875 12/ 1/14 22,142,880
10,500 Clark County, Nevada, Nevada Power Co Ser 1992 A (AMT)
(FGIC Insured).................................................. 6.70 6/ 1/22 11,565,225
10,000 Washoe County, Nevada, Sierra Pacific Power Co Ser 1987
(AMBAC Insured)................................................. 6.30 12/ 1/14 10,750,900
2,000 New Jersey Economic Development Authority, New Jersey Natural
Gas Co Ser 1991 B (AMT)......................................... 7.25 3/ 1/21 2,205,280
3,000 Pennsylvania Industrial Development Authority, Ser A 1991........ 7.00 1/ 1/11 3,329,100
18,000 Alliance Airport Authority, Texas, AMR Corp Ser 1990 (AMT)....... 7.50 12/ 1/29 19,534,680
6,000 Brazos River Authority, Texas, Texas Utilities Electric Co
Collateralized Ser 1988 A (AMT)................................. 9.25 3/ 1/18 7,057,800
12,000 Grapevine Industrial Development Corporation, Texas,
American Airlines Inc Ser 1985.................................. 9.25 12/ 1/12 13,156,920
Matagorda County Navigational District #1, Texas, Central
Power & Light Co
7,000 Collateralized Ser 1984 A....................................... 7.50 12/15/14 8,028,440
10,000 Ser 1986 (AMT).................................................. 7.875 12/ 1/16 11,216,700
5,000 Putnam County, West Virginia, Appalachian Power Co Ser C ........ 6.60 7/ 1/19 5,343,750
10,000 Weston, Wisconsin, Wisconsin Public Service Corp Refg Ser 1993 A. 6.90 2/ 1/13 11,395,700
-------- -------------
151,000 165,569,340
-------- -------------
MORTGAGE REVENUE--MULTI-FAMILY (1.8%)
Massachusetts Housing Finance Agency,
4,875 GNMA-Backed Ser 1985 A.......................................... 9.125 12/ 1/20 5,308,631
4,800 Hsg Dev 1986 Ser A (AMT)........................................ 7.75 12/ 1/19 5,104,800
7,000 Michigan Housing Development Authority, Rental Ser A
(Bifurcated FSA Insured)........................................ 6.50 4/ 1/23 7,438,900
New York City Housing Development Corporation, New York,
4,712 Ruppert Proj--FHA Insured Sec 223F.............................. 6.50 11/15/18 5,063,184
4,574 Stevenson Commons Proj--FHA Insured Sec 223F.................... 6.50 5/15/18 4,908,112
-------- -------------
25,961 27,823,627
-------- -------------
MORTGAGE REVENUE--SINGLE FAMILY (4.3%)
4,975 California Housing Finance Agency, Home Cap Apprec 1983 Ser B.... 0.00 8/ 1/15 523,121
6,575 Illinois Housing Development Authority, 1991 Ser C-2 RIBS (AMT).. 10.607+ 2/ 1/18 7,437,969
40,000 Maryland Community Development Administration, Cap Apprec 1983
Second Ser...................................................... 0.00 4/ 1/15 4,958,400
5,500 Nebraska Investment Finance Authority, GNMA-Backed 1990 Ser 2
RIBS (AMT)...................................................... 12.039+ 9/10/30 6,414,375
4,010 North Carolina Housing Finance Agency, Ser Q (AMT)............... 8.00 3/ 1/18 4,301,006
3,900 Ohio Housing Finance Agency, GNMA-Backed 1991 Ser A-2 RIBS
(AMT)........................................................... 10.998+ 3/24/31 4,465,500
Pennsylvania Housing Finance Agency,
8,000 Ser 1993--37A................................................... 5.45 10/ 1/17 7,904,720
5,000 Ser 1991--31C RIBS (AMT)........................................ 11.364+ 10/ 1/23 5,706,250
4,000 Ser 1992--RIBS (AMT)............................................ 9.175+ 4/ 1/25 4,210,000
Tennessee Housing Development Agency, Mortgage Finance
4,000 1993 Ser A...................................................... 5.90 7/ 1/18 4,083,720
12,700 1993 Ser A...................................................... 5.95 7/ 1/28 12,911,328
5,000 Wisconsin Housing & Economic Development Authority, Home
Ownership 1991 Ser 3 RIBS (AMT)................................. 11.326+ 10/25/22 5,875,000
-------- -------------
103,660 68,791,389
-------- -------------
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993 (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
NURSING & HEALTH RELATED FACILITIES REVENUE (0.3%)
$ 4,000 Maine Health & Higher Educational Facilities Authority, Ser 1992 B
--------- (FSA Insured)................................................... 5.50 % 7/ 1/22 $ 4,006,320
PUBLIC FACILITIES REVENUE (6.3%)
Los Angeles Convention & Exhibition Center Authority, California,
12,500 1993 Refg Ser A (MBIA Insured).................................. 5.375 8/15/18 12,473,625
9,000 Ser 1985 (Prerefunded).......................................... 9.00 12/ 1/20 12,555,450
7,000 Palm Beach County, Florida, Criminal Justice Ser 1990 (FGIC Insured) 6.00 6/ 1/13 7,348,530
10,000 Metropolitan Pier & Exposition Authority, Illinois, McCormick Place
Ser 1992 A...................................................... 6.50 6/15/27 10,709,300
3,000 Maine Municipal Bond Bank, 1988 Ser B (Prerefunded).............. 7.85 11/ 1/18 3,580,050
10,000 Michigan Building Authority, 1993 Refg Ser I (AMBAC Insured) .... 5.30 10/ 1/16 9,999,000
6,000 Saint Louis Industrial Development Authority, Missouri, Kiel Center
Refg Ser 1992 (AMT)............................................. 7.75 12/ 1/13 6,526,200
14,000 New York State Dormitory Authority, Suffolk County Judicial
Ser 1986 (ETM).................................................. 7.375 7/ 1/16 17,793,580
Ohio Building Authority, Correctional
5,000 1985 Ser C BIGS................................................. 0.00 10/ 1/05 5,012,500
10,000 1986 Ser A...................................................... 7.35 8/ 1/06 11,495,100
2,000 Refg 1986 Ser B................................................. 7.125 9/ 1/09 2,201,000
-------- -------------
88,500 99,694,335
-------- -------------
RESOURCE RECOVERY REVENUE (9.0%)
Connecticut Resources Recovery Authority,
9,000 American REF-FUEL Co of Southeastern Connecticut 1988 Ser A
(AMT)........................................................... 8.00 11/15/15 10,451,520
4,950 Bridgeport RESCO Ser A.......................................... 7.625 1/ 1/09 5,493,164
7,060 Broward County, Florida, SES Broward County South Ser 1984....... 7.95 12/ 1/08 8,057,296
8,500 Savannah Resource Recovery Development Authority, Georgia,
Savannah Energy Systems Co Ser 1992............................. 6.30 12/ 1/06 9,122,200
13,050 Northeast Maryland Waste Disposal Authority, Montgomery County
Ser 1993 A (AMT)................................................ 6.30 7/ 1/16 13,670,006
Massachusetts Industrial Finance Agency, SEMASS
15,000 Ser 1991 A...................................................... 9.00 7/ 1/15 17,110,050
20,000 Ser 1991 B (AMT)................................................ 9.25 7/ 1/15 22,911,400
3,000 Greater Detroit Resource Recovery Authority, Michigan, Ser C..... 9.25 12/13/08 3,281,400
9,000 Mercer County Improvement Authority, New Jersey, Refg Ser A 1992
(AMT) (FGIC Insured)............................................ 6.70 4/ 1/13 10,116,090
9,000 Union County Utilities Authority, New Jersey, 1991 Ser A (AMT)... 7.20 6/15/14 10,039,500
10,000 Hempstead Industrial Development Agency, New York, 1985 American
REF-FUEL Co of Hempstead........................................ 7.40 12/ 1/10 10,902,000
9,680 New York State Environmental Facilities Corporation, Huntington
1989 Ser A (AMT)................................................ 7.50 10/ 1/12 10,652,840
5,000 Onondaga County Resource Recovery Agency, New York, 1992 Ser
(AMT)........................................................... 6.875 5/ 1/06 5,404,750
5,000 Fairfax County Economic Development Authority, Virginia,
Ogden Martin Systems of Fairfax Inc Ser 1988 A (AMT)............ 7.75 2/ 1/11 5,761,150
-------- -------------
128,240 142,973,366
-------- -------------
RETIREMENT & LIFECARE FACILITIES REVENUE (0.00%)
2,268 Alachua County, Florida, Atrium Apartments Ser 1990 (b).......... 9.00 10/15/05 79,453
-------- -------------
TRANSPORTATION FACILITIES REVENUE (14.4%)
10,000 San Francisco Bay Area Rapid Transit District, California, Sales Tax
Ser 1985 (Prerefunded).......................................... 9.00 7/ 1/11 11,152,600
Connecticut, Infrastructure
4,000 1988 Ser C (Prerefunded)........................................ 7.50 10/ 1/05 4,671,800
3,000 1988 Ser C (Prerefunded)........................................ 7.50 10/ 1/06 3,503,850
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993 (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
Mid-Bay Bridge Authority, Florida,
$ 8,965 Sr Lien Crossover Refg Ser 1993 A............................... 6.00 % 10/ 1/13 $ 9,332,386
2,500 Jr Lien Advance Refg Ser 1993 D................................. 6.125 10/ 1/22 2,568,225
2,500 Ser 1991 A (Crossover Refunded)................................. 6.875 10/ 1/22 3,152,125
10,000 Atlanta, Georgia, Airport Ser 1990 (AMT)......................... 6.25 1/ 1/21 10,628,900
8,100 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax
Refg Ser K...................................................... 7.25 7/ 1/10 9,148,545
5,000 Hawaii, Airports Second Ser 1991 (AMT)........................... 7.00 7/ 1/18 5,509,400
7,900 Chicago, Illinois, Chicago--O'Hare Intl Airport Refg 1993 Ser A.. 5.00 1/ 1/16 7,437,771
Kentucky Turnpike Authority,
5,135 Economic Development Road Revitalization Ser 1990 (Prerefunded). 7.25 5/15/10 6,039,325
30,000 Resource Recovery Road Refg 1987 Ser A.......................... 5.00 7/ 1/08 29,907,600
7,000 Maryland Transportation Authority, Ser 1985 (Prerefunded)........ 9.00 7/ 1/15 7,735,560
Massachusetts Port Authority,
2,255 Refg Ser 1985 B................................................. 9.375 7/ 1/15 2,490,805
5,745 Refg Ser 1985 B (Prerefunded)................................... 9.375 7/ 1/15 6,377,295
New Jersey Highway Authority, Sr Parkway
11,000 Refg Ser 1992................................................... 6.25 1/ 1/14 11,900,680
10,000 1986 Ser (Prerefunded).......................................... 7.125 1/ 1/14 10,915,600
630 1989 Ser........................................................ 6.00 1/ 1/19 650,261
1,370 1989 Ser (ETM).................................................. 6.00 1/ 1/19 1,532,729
Albuquerque, New Mexico, Gross Receipts Tax--Airport Supported
7,000 Sub Lien Ser 12/84.............................................. 8.25 7/ 1/14 7,681,100
7,000 Sub Lien Ser 12/84.............................................. 8.25 7/ 1/14 7,683,270
10,000 Port Authority of New York & New Jersey, Cons 53rd Ser........... 8.70 7/15/20 10,976,700
Pennsylvania Turnpike Commission,
5,000 Ser L of 1991 (MBIA Insured).................................... 6.00 6/ 1/15 5,302,200
15,000 Ser A of 1986................................................... 6.00 12/ 1/17 15,320,100
6,000 Ser K of 1989 (Prerefunded)..................................... 7.50 12/ 1/19 7,159,680
15,000 Puerto Rico Highway & Transportation Authority, Refg Ser X....... 5.50 7/ 1/15 15,237,300
4,000 Virginia Transportation Board, US Route 58 Corridor Ser 1993 B... 5.625 5/15/13 4,123,480
9,000 Port of Seattle, Washington, Ser 1992 B (AMT).................... 6.00 11/ 1/17 9,285,210
-------- -------------
213,100 227,424,497
-------- -------------
WATER & SEWER REVENUE (9.3%)
7,500 South Central Connecticut Regional Water Authority, 1986 Ser
(Prerefunded)................................................... 7.125 8/ 1/12 8,302,725
10,000 Atlanta, Georgia, Water & Sewer Ser 1985 (Prerefunded)........... 9.50 1/ 1/08 10,890,600
4,750 Baltimore, Maryland, Water Refg Ser 1990-A (MBIA Insured)
(Prerefunded)................................................... 6.50 7/ 1/20 5,371,585
Boston Water & Sewer Commission, Massachusetts,
6,000 Ser A 1984 (Prerefunded)........................................ 7.00 1/ 1/11 6,388,200
2,315 Ser A 1986 (Prerefunded)........................................ 7.875 11/ 1/13 2,601,551
1,440 Ser A 1986 (Prerefunded)........................................ 7.875 11/ 1/13 1,638,720
Massachusetts Water Resources Authority,
10,000 Refg 1992 Ser B................................................. 5.50 11/ 1/15 9,843,000
14,250 1993 Ser C...................................................... 5.25 12/ 1/15 13,887,053
4,000 Detroit, Michigan, Sewage Refg Ser 1993--A (FGIC Insured)........ 5.70 7/ 1/13 4,132,960
8,500 Albuquerque, New Mexico, Joint Water & Sewer 1986 Ser A.......... 6.00 7/ 1/15 8,785,855
New York City Municipal Water Finance Authority, New York,
8,500 1994 Ser B...................................................... 5.30 6/15/06 8,491,925
3,700 1991 Ser C (Prerefunded)........................................ 7.375 6/15/13 4,461,312
5,000 1986 Ser B (Prerefunded)........................................ 7.875 6/15/16 5,616,450
10,000 1993 Ser A...................................................... 6.00 6/15/17 10,344,900
2,500 Hamilton County, Ohio, Sewer 1985 Ser A (Prerefunded)............ 7.50 12/ 1/10 2,774,425
10,000 Philadelphia, Pennsylvania, Water & Wastewater Ser 1993
(Capital Guaranty Insured)...................................... 5.50 6/15/15 10,024,800
6,000 San Antonio, Texas, Prior Lien Sewer Impr & Refg Ser 1986
(Prerefunded)................................................... 7.25 5/ 1/12 6,615,840
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
PORTFOLIO OF INVESTMENTS December 31, 1993 (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- --------- ------ ------ -----
<C> <S> <C> <C> <C>
$ 13,000 Fairfax County, Virginia, Sewer Ser A (AMBAC Insured) (Prerefunded) 7.00 % 11/15/16 $ 15,094,430
10,000 Richmond, Virginia, Public Utilities Ser A (Prerefunded)......... 8.00 1/15/18 11,652,400
-------- -------------
137,455 146,918,731
-------- -------------
OTHER REVENUE (2.3%)
3,500 Denver, Colorado, Excise Tax Ser 1985 A.......................... 5.00 11/ 1/08 3,503,325
New York Local Government Assistance Corporation,
11,000 Ser 1993 C Refg................................................. 5.50 4/ 1/17 11,143,660
8,000 Ser 1991 D (Prerefunded)........................................ 7.00 4/ 1/18 9,540,080
11,000 New York State Dormitory Authority, The Metropolitan Museum of Art
Ser 1987 (Prerefunded).......................................... 7.625 7/ 1/15 11,659,340
--------- -------------
33,500 35,846,405
--------- -------------
1,464,469 TOTAL MUNICIPAL BONDS (IDENTIFIED COST $1,340,377,418)........... 1,500,891,249
--------- -------------
SHORT-TERM MUNICIPAL OBLIGATIONS (3.9%)
13,000 San Francisco Redevelopment Agency, California, Bayside Village
Ser 1985 A (Tender 1/6/94)...................................... 2.80* 12/ 1/05 13,000,000
12,000 Volusia County Health Facilities Authority, Florida, Pooled Ser 1985
(FGIC Insured) (Tender 1/5/94).................................. 3.50* 11/ 1/15 12,000,000
12,150 Illinois Health Facilities Authority, Resurrection Health Care
Ser 1993 (Tender 1/3/94)........................................ 4.50* 5/ 1/11 12,150,000
4,000 Ascension Parish, Louisiana, Shell Oil Co (Tender 1/3/94)........ 4.75* 9/ 1/23 4,000,000
12,300 Louisiana Recovery District, Sales Tax Ser 1988 (FGIC Insured)
(Tender 1/3/94)................................................. 4.30* 7/ 1/97 12,300,000
4,000 Massachusetts, Dedicated Income Tax Ser 1990 B (Tender 1/3/94)... 4.25* 12/ 1/97 4,000,000
4,200 District of Columbia, Ser 1992 A--3 (Tender 1/3/94).............. 4.25* 10/ 1/07 4,200,000
- ---------- -------------
61,650 TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS
(IDENTIFIED COST $61,650,000)................................... 61,650,000
- ---------- -------------
$1,526,119 TOTAL INVESTMENTS (IDENTIFIED COST $1,402,027,418) (C)........... 98.8% 1,562,541,249
- ---------
- --------- CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES................... 1.2 19,444,797
----- --------------
NET ASSETS....................................................... 100.0% $1,581,986,046
----- --------------
----- -------------
<FN>
+ Current coupon rate for residual interest bonds. This rate resets periodically as the auction rate on the related short-term
securities fluctuates.
* Variable or floating rate securities. Coupon rate shown reflects current rate.
(a) Security purchased on a when issued basis.
(b) Security in default. Partial interest paid. Interest income is recorded as received.
(c) The aggregate cost for federal income tax purposes is $1,402,027,418; the aggregate gross unrealized appreciation is
$172,969,734 and the aggregate gross unrealized depreciation is $12,455,903, resulting in net unrealized appreciation of
$160,513,831.
See Notes to Financial Statements
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
FINANCIAL STATEMENTS
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1993
===============================================================================
ASSETS:
Investments in securities, at value
(identified cost $1,402,027,418) (Note 1)............. $1,562,541,249
Cash................................................... 3,053,570
Receivable for:
Interest.............................................. 27,990,205
Shares of beneficial interest sold.................... 2,499,071
Prepaid expenses....................................... 22,699
-------------
TOTAL ASSETS...................................... 1,596,106,794
-------------
LIABILITIES:
Payable for:
Investments purchased................................. 8,967,287
Shares of beneficial interest repurchased............. 360,980
Investment management fee payable (Note 2)............. 544,937
Dividends and distributions to shareholders (Note 6)... 4,049,291
Accrued expenses (Note 3).............................. 198,253
-------------
TOTAL LIABILITIES................................. 14,120,748
-------------
NET ASSETS:
Paid-in-capital........................................ 1,418,230,317
Accumulated realized gain on investments--net.......... 3,241,898
Unrealized appreciation on investments--net............ 160,513,831
--------------
NET ASSETS........................................ $1,581,986,046
--------------
--------------
NET ASSET VALUE PER SHARE, 127,473,938
shares outstanding (unlimited authorized
shares of $.01 par value)............................. $12.41
------
------
MAXIMUM OFFERING PRICE PER SHARE (net asset
value plus 4.17% of net asset value)*................. $12.93
------
------
*On sales of $25,000 or more the offering price is reduced.
===============================================================================
STATEMENT OF OPERATIONS
For the year ended December 31, 1993
===============================================================================
INVESTMENT INCOME:
INTEREST INCOME....................................... $ 98,381,785
------------
EXPENSES
Investment management fee (Note 2)................... 6,085,516
Transfer agent fees and expenses (Note 3)............ 462,531
Registration fees.................................... 123,269
Professional fees.................................... 54,007
Shareholder reports and notices...................... 51,968
Custodian fees....................................... 43,152
Trustees' fees and expenses (Note 3)................. 35,671
Other................................................ 51,010
----------
TOTAL EXPENSES.................................... 6,907,124
----------
INVESTMENT INCOME--NET............................. 91,474,661
----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--NET (Note 1):
Realized gain on investments--net..................... 8,324,995
Change in unrealized appreciation on
investments--net..................................... 54,678,906
----------
NET GAIN ON INVESTMENTS........................... 63,003,901
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS......................... $154,478,562
------------
------------
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
===================================================================================================================================
<CAPTION>
For the year For the year
ended ended
December 31, 1993 December 31, 1992
----------------- --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income--net........................................................ $ 91,474,661 $ 82,371,019
Realized gain on investments--net............................................. 8,324,995 4,179,591
Change in unrealized appreciation on investments--net......................... 54,678,906 19,231,201
-------------- --------------
Net increase in net assets resulting from operations........................... 154,478,562 105,781,811
------------- -------------
Dividends and distributions to shareholders from:
Investment income--net........................................................ (91,474,661) (82,370,979)
Realized gain on investments--net............................................. (701,643) -0-
------------- -------------
(92,176,304) (82,370,979)
------------- -------------
Transactions in shares of beneficial interest--net increase (Note 5)........... 196,214,972 155,342,190
------------- -------------
Total increase............................................................. 258,517,230 178,753,022
NET ASSETS:
Beginning of period............................................................ 1,323,468,816 1,144,715,794
-------------- --------------
END OF PERIOD.................................................................. $1,581,986,046 $1,323,468,816
-------------- --------------
-------------- --------------
See Notes to Financial Statements
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Tax-Exempt Securities
Trust (the "Fund") is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a diversified, open-end management investment company
and was originally incorporated in Maryland in 1979 and reorganized as a
Massachusetts business trust on April 30, 1987. The Fund commenced operations
on March 27, 1980.
The following is a summary of significant accounting policies:
A. Valuation of Investments--Portfolio securities are valued for the
Fund by an outside independent pricing service approved by the Fund's Trustees.
The pricing service has informed the Fund that in valuing the Fund's portfolio
securities, it uses both a computerized grid matrix of tax-exempt securities
and evaluations by its staff, in each case based on information concerning
market transactions and quotations from dealers which reflect the bid side of
the market each day. The Fund's portfolio securities are thus valued by
reference to a combination of transactions and quotations for the same or other
securities believed to be comparable in quality, coupon, maturity, type of
issue, call provisions, trading characteristics and other features deemed to be
relevant.
B. Accounting for Investments--Security transactions are accounted for
on the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined on the identified cost
method. Net investment income includes amortization of premiums and original
issue discounts. Additionally, with respect to market discount on bonds
purchased after April 30, 1993, a portion of any capital gain realized upon
disposition is recharacterized as taxable investment income. Interest income is
accrued daily except where collection is not expected.
C. 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 and non-taxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. 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 reclassifications. 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.
2. TRANSACTIONS WITH INVESTMENT MANAGER--Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, accrued daily
and payable monthly, by applying the following annual rates to the daily net
assets of the Fund determined as of the close of each business day: 0.50% of
the portion of the daily net assets not exceeding $500 million; 0.425% of the
portion of the daily net assets exceeding $500 million but not exceeding $750
million; 0.375% of the portion of the daily net assets exceeding $750 million
but not exceeding $1 billion; 0.35% of the portion of the daily net assets
exceeding $1 billion but not exceeding $1.25 billion; and 0.325% of the portion
of the daily net assets exceeding $1.25 billion. Under the terms of
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
===============================================================================
the Agreement, in addition to managing the Fund's investments, the Investment
Manager maintains certain of the Fund's books and records and furnishes office
space and 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.
Shares of the Fund are distributed by Dean Witter Distributors Inc.,
(the Distributor), an affiliate of the Investment Manager. The Distributor has
informed the Fund that it received approximately $7,812,000 in commissions from
the sale of the Fund's shares of beneficial interest for the year ended
December 31, 1993. Such commissions are not an expense of the Fund; they are
deducted from the proceeds of the sales of the shares of beneficial interest.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and the proceeds from sales of portfolio securities for the year
ended December 31, 1993, excluding short-term investments, aggregated
$321,605,788 and $186,553,030, respectively.
On April 1, 1991 the Fund established an unfunded noncontributory
defined benefit pension plan covering all independent Trustees of the Fund who
will have served as independent Trustees for at least five years at the time of
retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension costs for
the year ended December 31, 1993, included in Trustees' fees and expenses in
the Statement of Operations, amounted to $12,232. At December 31, 1993 the Fund
had an accrued pension liability of $39,299 which is included in accrued
expenses in the Statement of Assets and Liabilities.
Dean Witter Trust Company ("DWTC"), an affiliate of the Investment
Manager, is the Fund's transfer agent. During the year ended December 31, 1993,
the Fund incurred transfer agent fees and expenses of $462,531 with DWTC, of
which $48,127 was payable at December 31, 1993.
4. FEDERAL INCOME TAX STATUS--During the year ended December 31, 1993, the Fund
utilized all of its net capital loss carryovers of approximately $4,331,000.
<TABLE>
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest were as follows:
<CAPTION>
For the year ended For the year ended
December 31, 1993 December 31, 1992
--------------------------- -------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold................................. 22,369,075 $273,876,016 19,288,589 $226,599,094
Reinvestment of dividends and
distributions....................... 4,269,905 52,363,197 3,992,396 46,822,621
--------- ----------- --------- -----------
26,638,980 326,239,213 23,280,985 273,421,715
Repurchased.......................... (10,610,367) (130,024,241) (10,078,275) (118,079,525)
--------- ----------- --------- -----------
Net increase......................... 16,028,613 $196,214,972 13,202,710 $155,342,190
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
6. DIVIDENDS AND DISTRIBUTIONS--On a daily basis the Fund declares dividends
from its net investment income. Such dividends are payable monthly.
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
<TABLE>
FINANCIAL HIGHLIGHTS
===================================================================================================================================
<CAPTION>
Selected data and ratios for a share of beneficial interest outstanding throughout each period:
For the year ended December 31,
----------------------------------------------------------------------------------------------
1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of
period....................... $11.88 $11.65 $11.09 $11.28 $10.96 $10.45 $11.50 $10.79 $ 9.80 $ 9.85
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Investment income--net...... 0.77 0.79 0.80 0.80 0.81 0.81 0.80 0.85 0.92 1.06
Realized and unrealized gain
(loss) on investments--net.. 0.54 0.23 0.56 (0.18) 0.32 0.51 (0.97) 1.21 1.07 (0.19)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations................... 1.31 1.02 1.36 0.62 1.13 1.32 (0.17) 2.06 1.99 0.87
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less dividends and
distributions:
Dividends from net
investment income........... (0.77) (0.79) (0.80) (0.81) (0.81) (0.81) (0.83) (0.87) (1.00) (0.92)
Distributions from net
realized gain on
investments................. (0.01) -0- -0- -0- -0- -0- (0.05) (0.48) -0- -0-
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total dividends and
distributions................ (0.78) (0.79) (0.80) (0.81) (0.81) (0.81) (0.88) (1.35) (1.00) (0.92)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period................ $12.41 $11.88 $11.65 $11.09 $11.28 $10.96 $10.45 $11.50 $10.79 $ 9.80
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL INVESTMENT
RETURN+....................... 11.23% 9.09% 12.71% 5.86% 10.61% 13.02% (1.44%) 20.17% 21.35% 9.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)...............$1,581,986$1,323,469$1,144,716$1,010,355$1,033,250$907,822 $896,419 $965,834 $489,367 $173,147
Ratio of expenses to average
net assets................... 0.47% 0.49% 0.51% 0.51% 0.51% 0.54% 0.52% 0.56% 0.61% 0.68%
Ratio of net investment income
to average net assets........ 6.23% 6.74% 7.05% 7.25% 7.31% 7.51% 7.42% 7.51% 8.90% 11.71%
Portfolio turnover rate....... 13% 4% 10% 19% 13% 17% 37% 42% 116% 102%
<FN>
- ------------
+ Does not reflect the deduction of sales load.
See Notes to Financial Statements
</TABLE>
<PAGE>
DEAN WITTER TAX-EXEMPT SECURITIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
===============================================================================
To the Shareholders and Trustees of Dean Witter Tax-Exempt Securities Trust
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 Dean Witter Tax-Exempt Securities
Trust (the "Fund") at December 31, 1993, 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 ten years in the
period then ended, in conformity with generally accepted accounting principles.
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 generally accepted auditing standards 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 owned at December 31, 1993 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
1177 Avenue of the Americas
New York, New York 10036
February 10, 1994
===============================================================================
1993 FEDERAL TAX NOTICE (unaudited)
During the year ended December 31, 1993, the Fund paid to shareholders $0.766
per share from net investment income. All of the Fund's dividends from net
investment income were exempt interest dividends, excludable from gross income
for Federal income tax purposes. For the same period, the Fund paid to
shareholders $0.005523 per share from long-term capital gains.
===============================================================================
<PAGE>
TRUSTEES
Jack F. Bennett
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Albert T. Sommers
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center--Plaza 2
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
Price Waterhouse
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
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
TAX-EXEMPT
SECURITIES
TRUST
(LOGO)
ANNUAL REPORT
DECEMBER 31, 1993
<PAGE>
APPENDIX FOR GRAPHIC AND IMAGE MATERIAL
A graphic image which appears on the first page (shareholder's letter)
of the typeset version of the preceding Annual Report has been omitted in this
EDGAR submission due to its incompatibility with the ASCII format. Pursuant to
Rule 304 of Regulation S-T, the information contained in the typeset graphic
has been fairly and accurately described in narrative and/or tabular form on
the first page (shareholder's letter) of this EDGAR submission file.
<PAGE>
