<PAGE>
ACTIVE ASSETS MONEY TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
As of December 31, 1993, Active Assets Money Trust had assets in excess of $3.6
billion with an average maturity of 73 days. The Trust's yield for the 12 months
ended December 31, 1993 was 2.80 percent. The yield for all first-tier taxable
money funds (those that purchase only top-quality commercial paper) was 2.62
percent, as reported by IBC/Donoghue, a leading monitor of the money-market fund
industry.
CHARACTERIZED BY STABILITY
Stability is the word that best characterizes the money markets during the
second half of 1993. In fact, the Federal Reserve Board's discount rate (the
rate the Fed charges member banks for loans) has remained at 3 percent for more
than 18 months. While economic statistics during the period suggested
significant improvement in the pace of activity, there was no indication that
the economy was in danger of overheating. The U.S. economy currently is enjoying
a moderate, sustainable expansion.
On December 31, 1993, approximately 80 percent of the Trust's portfolio
consisted of high-quality commercial paper, with 12 percent invested in U.S.
Treasury and federal agency obligations, 5 percent invested in short-term notes
issued by major, financially strong commercial banks, and the remaining 3
percent invested in bankers' acceptances, also issued by such institutions.
LOOKING AHEAD
We believe the Federal Reserve Board should be pleased with overall economic
conditions and the behavior of the financial markets for 1993 and early 1994. Of
course, the Federal Reserve Board's Governors must always be alert to
inflationary dangers, currency realignments and a host of other constantly
changing variables. We expect the Fed may register its concerns at some point in
1994 by raising short-term rates modestly. Nonetheless, we do not anticipate
dramatic changes in monetary conditions since we expect both inflation and the
pace of economic recovery to remain moderate during 1994. As always, we continue
to emphasize liquidity and preservation of capital in all our investment
decisions.
We appreciate your support of Active Assets Money Trust and look forward to
continuing to serve your investment needs and objectives.
Very truly yours,
/s/ C. Fiumefreddo
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
<TABLE>
ACTIVE ASSETS MONEY TRUST
PORTFOLIO OF INVESTMENTS December 31, 1993 (unaudited)
- --------------------------------------------------------------------------------
<CAPTION>
Annualized
Principal Description Yield
Amount (in and on Date of
thousands) Maturity Date Purchase Value
------- -------------- -------------- --------
<S> <C> <C> <C>
SHORT-TERM BANK NOTES (4.8%)
$ 156,400 FCC National Bank
1/04/94 to 6/29/94 .......... 3.24 to 3.43% $156,400,000
20,000 NationsBank of N.C. NA 2/01/94.. 3.28 20,000,000
------------
TOTAL SHORT-TERM BANK NOTES
(Amortized Cost $176,400,000) ............................. 176,400,000
------------
BANKERS' ACCEPTANCES (2.6%)
COMMERCIAL BANKS
41,000 Chemical Bank
1/26/94 to 3/14/94 ............ 3.24 to 3.26 40,824,496
20,000 CoreStates Bank N.A.
Philadelphia 6/08/94 .......... 3.37 19,709,456
15,000 Bank of America
N.T.&S.A. 4/19/94 .............. 3.24 14,856,450
20,000 Republic National
Bank, N.Y. 1/20/94 ............. 3.26 19,965,905
------------
TOTAL BANKERS' ACCEPTANCES
(Amortized Cost $95,356,307).............................. 95,356,307
------------
COMMERCIAL PAPER (81.0%)
AUTOMOTIVE FINANCE (2.2%)
81,500 Ford Motor Credit Co.
2/10/94 to 2/18/94 ............. 3.23 to 3.36 81,175,579
-----------
BANKS: COMMERCIAL (20.1%)
100,000 ABN AMRO N.A. Fin., Inc.
1/26/94 to 1/28/94 ............ 3.23 to 3.27 99,768,139
174,400 Barclays U.S. Funding Corp.
1/03/94 to 2/28/94 ............ 3.20 to 3.38 174,052,129
170,800 Canadian Imperial Holdings Inc.
1/12/94 to 3/31/94 ............ 3.23 to 3.38 170,012,243
73,850 CommerzBank US Finance Inc.
8/12/94 to 9/06/94 ............ 3.53 to 3.57 72,209,056
20,450 Northern Trust Company 1/24/94 3.21 20,408,190
29,300 Societe Generale N.A. Inc.
2/23/94 ....................... 3.30 29,160,239
170,450 Toronto-Dominion Holdings (USA)
Inc. 1/25/94 to 3/10/94 ....... 3.22 to 3.38 169,911,330
-------------
735,521,326
-------------
BANK HOLDING COMPANIES (14.7%)
$ 22,700 BankAmerica Corp.
1/03/94 to 1/18/94 ............ 3.22 to 3.41% $ 22,685,755
157,200 Bankers Trust N.Y
Corp. 1/12/94 to 8/02/94 ...... 3.26 to 3.49 156,500,559
135,000 NationsBank Corp.
1/19/94 to 2/14/94 ............ 3.23 to 3.28 134,605,417
45,000 Norwest Corporation
1/24/94 to 2/17/94 ............ 3.30 to 3.37 44,860,559
110,000 PNC Funding Corp.
2/15/94 to 3/22/94 ............ 3.22 to 3.36 109,381,361
40,000 Republic New York Corp.
4/06/94 ...................... 3.25 39,660,111
30,000 Wachovia Corp. 1/20/94 .......... 3.37 29,946,958
-------------
537,640,720
-------------
BROKERAGE (8.6%)
135,750 Goldman Sachs Group L.P.
1/07/94 to 3/10/94 .............. 3.23 to 3.42 135,110,159
181,600 Morgan Stanley Group Inc.
1/27/94 to 3/18/94 ............ 3.27 to 3.40 180,701,834
-------------
315,811,993
-------------
CANADIAN GOVERNMENT AND AGENCY (2.2%)
80,000 Canadian Wheat Board
3/21/94 to 6/30/94 .............. 3.25 to 3.35 79,225,092
-------------
DRUGS (0.5%)
20,000 Lilly, (Eli) & Co. 2/08/94 ...... 3.19 19,933,500
-------------
EQUIPMENT (2.9%)
105,000 John Deere Capital Corp.
1/21/94 to 2/14/94 ........... 3.24 to 3.35 104,696,042
-------------
FINANCE: CORPORATE (2.6%)
45,500 Ciesco, L.P. 2/07/94 ............. 3.26 45,348,017
50,200 Corporate Asset
Funding Co., Inc.
1/10/94 to 1/11/94 ............. 3.25 50,158,292
-------------
95,506,309
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annualized
Principal Description Yield
Amount (in and on Date of
thousands) Maturity Date Purchase Value
------- -------------- -------------- --------
<S> <C> <C> <C>
FINANCE: DIVERSIFIED (18.0%)
$ 93,350 American Express Credit Corp.
3/15/94 to 5/17/94 ............ 3.25 to 3.33% $ 92,457,837
18,300 American General Finance Corp.
1/06/94 ....................... 3.21 18,291,867
30,000 Associates Corp. of
North America 1/19/94 ......... 3.23 29,952,000
90,000 Avco Financial Services, Inc.
2/08/94 to 3/04/94 ............ 3.24 to 3.36 89,594,033
178,900 CIT Group Holdings Inc.
1/27/94 to 4/29/94 ............ 3.24 to 3.38 177,724,598
162,300 General Electric Capital Corp.
1/31/94 to 6/15/94 ............ 3.26 to 3.51 161,094,777
45,000 Household Finance Corp.
1/28/94 ....................... 3.38 44,886,600
45,100 ITT Financial Corp.
1/06/94 to 1/20/94 ............ 3.25 to 3.35 45,066,674
------------
659,068,386
------------
FOOD AND BEVERAGES (4.6%)
40,000 Anheuser-Busch Cos., Inc.
6/30/94 to 6/29/94 ............. 3.26 to 3.38 39,343,792
130,000 Coca-Cola Co.
1/07/94 to 2/22/94 ............. 3.21 to 3.36 129,801,556
------------
169,145,348
------------
HEALTH CARE: DIVERSIFIED (0.9%)
31,000 Schering-Plough Corporation
1/20/94 ........................ 3.23 30,947,644
------------
INDUSTRIAL (0.8%)
$ 30,000 Intel Corp. 3/25/94 .............. 3.25% $ 29,777,283
------------
RETAIL (1.0%)
35,000 Penney (J.C.) Funding Corp.
2/01/94 ........................ 3.26 34,902,049
------------
TELEPHONE (1.9%)
43,900 American Telephone &
Telegraph Co. 1/21/94 .......... 3.21 43,822,443
24,000 NYNEX Corp. 1/14/94 .............. 3.40 23,970,707
------------
67,793,150
------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $2,961,144,421) .......... 2,961,144,421
--------------
U.S. GOVERNMENT AGENCIES (10.2%)
34,000 Federal Farm Credit Bank
4/05/94 to 11/15/94 ........... 3.40 to 3.63 33,505,027
40,000 Federal Home Loan Banks
7/21/94 to 12/08/94 ........... 3.35 to 3.65 38,906,350
306,400 Federal National Mortgage
Association 2/02/94
to 10/19/94 ................... 3.27 to 3.55 300,451,020
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(Amortized Cost $372,862,397) .......... 372,862,397
--------------
U.S. GOVERNMENT OBLIGATION (1.4%)
53,000 U.S. Treasury Bills
(Amortized Cost $51,841,764)
7/28/94 to 11/17/94 .......... 3.34 to 3.61 51,841,764
--------------
TOTAL INVESTMENTS (Amortized Cost
$3,657,604,889)(a) ...................... 100.0% 3,657,604,889
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES NET ASSETS ................. 0.0 551,221
------ --------------
NET ASSETS ................................ 100.0% $3,658,156,110
====== ==============
<FN>
- ----------------
(a) Cost is the same for federal income tax purposes.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
ACTIVE ASSETS MONEY TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1993 (unaudited)
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value (amortized cost
$3,657,604,889) (Note 1) ................................. $3,657,604,889
Cash ........................................................ 35,704
Interest receivable ......................................... 2,021,899
Prepaid expenses ............................................ 375,750
--------------
Total Assets ........................................... 3,660,038,242
--------------
LIABILITIES:
Payable for: ................................................
Shares of beneficial interest repurchased ................ 60,891
Investment management fee (Note 2)........................ 1,076,198
Plan of distribution fee (Note 3) ........................ 320,068
Accrued expenses (Note 4) ................................... 424,975
--------------
Total Liabilities ...................................... 1,882,132
--------------
NET ASSETS:
Paid in capital ............................................. 3,658,154,989
Accumulated undistributed net investment income ............. 1,121
---------------
Net Assets ............................................. $3,658,156,110
---------------
Net Asset Value Per Share, 3,658,154,989
shares outstanding (unlimited shares
authorized of $.01 par value) ..................................... $1.00
=====
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended December 31, 1993 (unaudited)
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest income ................................................ $ 62,283,701
------------
Expenses
Investment management fee (Note 2) .......................... 6,388,130
Plan of distribution fee (Note 3) ........................... 1,899,910
Transfer agent fees and expenses (Note 4) ................. 1,067,538
Shareholder reports and notices ............................. 246,521
Registration fees ........................................... 113,457
Custodian fees ............................................. 83,470
Professional fees ........................................... 31,266
Trustees' fees and expenses (Note 4) ........................ 17,204
Other ....................................................... 18,160
------------
Total Expenses .......................................... 9,865,656
------------
Net Investment Income .................................. 52,418,045
NET REALIZED GAIN ON INVESTMENTS (Note 1) ...................... 55,308
------------
Net Increase in Net Assets
Resulting from Operations .............................. $ 52,473,353
============
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<CAPTION>
For the six
months ended For the
December 31, 1993 year ended
(unaudited) June 30, 1993
------------------ --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .................. $ 52,418,045 $ 108,430,954
Net realized gain on investments ....... 55,308 --0--
--------------- --------------
Net increase in net assets resulting
from operations ................... 52,473,353 108,430,954
Dividends and distributions to
shareholders from:
Net investment income ................ (52,418,802) (108,432,950)
Net realized gain on investments ..... (55,308) --0--
------------- -------------
(52,474,110) (108,432,950)
------------- -------------
Net increase (decrease) from transactions in
shares of beneficial interest (Note 5) ... 53,849,651 (23,997,368)
------------- -------------
Total increase (decrease) ............... 53,848,894 (23,999,364)
NET ASSETS:
Beginning of period ........................ 3,604,307,216 3,628,306,580
------------- -------------
End of period (including undistributed net
investment income of $1,121 and
$1,878, respectively) ................... $3,658,156,110 $3,604,307,216
============== ==============
See Notes to Financial Statements
</TABLE>
<PAGE>
ACTIVE ASSETS MONEY TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Active Assets Money Trust (the "Trust")
was organized as a Massachusetts business trust on March 30, 1981 and is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a diversified, open-end management investment company. The Trust commenced
operations on July 7, 1981.
The following is a summary of significant accounting policies:
A. Valuation of Investments--Portfolio securities are valued at amortized
cost, which approximates market value.
B. Accounting for Investments--Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing
net investment income, the Trust amortizes any premiums and discounts on
securities owned. Realized gains and losses on security transactions are
determined on the identified cost method.
C. Federal Income Tax Status--It is the Trust'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.
D. Dividends and Distributions to Shareholders--Dividends and distributions
to shareholders are recorded by the Trust as of the close of the Trust's
business day.
E. Repurchase Agreements--The Trust's custodian takes possession on behalf
of the Trust of the collateral pledged for investments in repurchase
agreements. It is the policy of the Trust to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price. In
the event of default of the obligator to repurchase, the Trust has the
right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation.
2. INVESTMENT MANAGEMENT AGREEMENT--Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Trust pays its Investment Manager a management fee, calculated
daily and payable monthly, by applying the following annual rates to the net
assets of the Trust determined as of the close of the Trust's 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 $1.5 billion; 0.325% of the
portion of the daily net assets exceeding $1.5 billion but not exceeding $2
billion; 0.30% of the portion of the daily net assets exceeding $2 billion but
not exceeding $2.5 billion; 0.275% of the portion of the daily net assets
exceeding $2.5 billion but not exceeding $3 billion; and 0.25% of the portion of
the daily net assets exceeding $3 billion. Under the terms of the Agreement, in
addition to managing the Trust's investments, the Investment Manager maintains
certain of the Trust'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 Trust 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
Trust.
3. PLAN OF DISTRIBUTION--Shares of beneficial interest of the Trust are
distributed by Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager. The Trust has entered into a Plan of Distribution
(the "Plan"), pursuant to Rule 12b-1 under the Act, with the Distributor whereby
the Distributor finances certain activities in connection with the distribution
of the Trust's shares.
<PAGE>
ACTIVE ASSETS MONEY TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
Under the Plan, the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Trust, except for expenses that
the Trustees determine to reimburse, as described below. The following
activities and services may be provided by the Distributor under the Plan: (1)
compensation to sales representatives of the Distributor and other broker-
dealers; (2) sales incentives and bonuses to sales representatives and to
marketing personnel in connection with promoting sales of shares; (3) expenses
incurred in connection with promoting sales of shares; (4) preparing and
distributing sales literature; and (5) providing advertising and promotional
activities, including direct mail solicitation and television, radio, newspaper,
magazine and other media advertisements.
The Trust is authorized to reimburse specific expenses incurred in
promoting the distribution of the Trust's shares. The amount of each monthly
reimbursement payment may in no event exceed an amount equal to a payment at the
average rate of .15 of 1% of the Trust's average daily net assets during the
month. For the six months ended December 31, 1993, the distribution fee
established by the Trustees and accrued was at the average annual rate of .10 of
1%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of purchases
and the proceeds from sales/maturities of portfolio securities for the six
months ended December 31, 1993, aggregated $6,938,682,047 and $6,944,084,033,
respectively.
On April 1, 1991 the Trust established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Trust who will
have served as an independent Trustee 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 cost for
the six months ended December 31, 1993 included in Trustees' fees and expenses
in the Statement of Operation, amounted to $5,201. At December 31, 1993, the
Trust had an accrued pension liability of $38,384 which is included in accrued
expenses in the Statement of Assets and Liabilities.
Dean Witter Trust Company ("DWTC"), an affiliate of the Investment Manager
and the Distributor, is the Trust's transfer agent. During the six months ended
December 31, 1993, the Trust incurred transfer agent fees and expenses of
$1,067,538 with DWTC, of which $174,652 was payable at December 31, 1993.
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest,
at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
For the six months For the year
ended ended
December 31, 1993 June 30, 1993
----------------- --------------
<S> <C> <C>
Shares sold ................................ 8,884,896,648 15,714,334,105
Shares issued in reinvestment of dividends.. 52,374,345 108,252,232
--------------- ---------------
8,937,270,993 15,822,586,337
Shares repurchased ......................... (8,883,421,342) (15,846,583,705)
-------------- ---------------
Net increase (decrease) in shares outstanding 53,849,651 (23,997,368)
============= ===============
</TABLE>
<PAGE>
<TABLE>
ACTIVE ASSETS MONEY TRUST
FINANCIAL HIGHLIGHTS (unaudited)
- --------------------------------------------------------------------------------
Selected data and ratios for a share of beneficial interest outstanding
throughout each period:
<CAPTION>
For the six For the year ended June 30,
months ended ---------------------------
December 31, 1993 1993 1992 1991 1990 1989
----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Net investment income .... .014 .029 .045 .068 .081 .083
Less dividends and
distributions from
net investment income ... (.014) (.029) (.045) (.068) (.081) (.083)
------ ------ ------ ------ ------ ------
Net asset value, end of
period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN..... 1.41%(1) 2.95% 4.58% 7.05% 8.43% 8.57%
RATIOS/SUPPLEMENTAL DATA:
Net asset, end of period
(in millions) ........... $3,658 $3,604 $3,628 $3,688 $3,454 $3,021
Ratio of expenses to
average net assets ..... 0.52%(2) 0.51% 0.54% 0.52% 0.50% 0.52%
Ratio of net investment
income to average
net assets ............ 2.76%(2) 2.90% 4.45% 6.80% 8.10% 8.33%
<FN>
- -----------
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
</TABLE>
<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
Jonathan R. Page
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
- -----------------------------------------------
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
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
The financial statements included herein have been taken from the
records of the Trust without examination by the independent accountants
and accordingly they do not express an opinion hereon.
This report is submitted for the general information of shareholders of
the Trust. For more detailed information about the Trust, its officers and
trustees, fees, expenses and other pertinent information, please see
the prospectus of the Trust.
This report is not authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an effective prospectus.
<PAGE>
ACTIVE ASSETS
MONEY TRUST
Semiannual Report
December 31, 1994
<PAGE>
