<PAGE> 1
ACTIVE ASSETS MONEY TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
As of December 31, 1994, Active Assets Money Trust had assets in excess of
$4.6 billion with an average maturity of 60 days. The Trust's annualized yield
for the twelve-month period ended December 31, 1994 was 3.87 percent.
CONTINUED YIELD CLIMB
Continuing the trend which began in early February, 1994, money market
yields climbed significantly during the second half of 1994. The yield on
three-month Treasury bills increased from 4.25 percent in early July to over
5.50 percent by late December. Inflation rates have remained in check, with
consumer prices for 1994 rising by 2.7 percent. However, the Federal Reserve
Board has been attempting to stay ahead of possible inflationary pressures which
could arise as the pace of economic activity stays strong and there is less idle
capacity.
PORTFOLIO COMPOSITION AND STRUCTURE
On December 31, 1994, approximately 85 percent of the Trust's portfolio
consisted of high quality commercial paper, with 8 percent invested in Federal
agency and U.S. Treasury obligations, 5 percent invested in short-term notes of
major, financially strong commercial banks and the remaining 2 percent invested
in bankers' acceptances. More than 82 percent of the Trust's assets mature in
less than three months. Therefore, the portfolio is well positioned to take
advantage of any further upward rate pressures and has a very high degree of
liquidity. We continue to operate the Trust in a straight-forward, conservative
style without the use of "structured notes" or derivatives which fluctuate
excessively when interest rates change.
THE OUTLOOK
The U.S. economy proved to be a powerful engine of growth during 1994,
producing robust job creation. In December, unemployment fell to 5.4 percent,
its lowest level since July, 1990. With most other key economic indicators also
reflecting strength, we believe the Federal Reserve Board could decide to raise
short-term rates further during the first half of 1995.
The recent steepness of the money market yield curve has anticipated such
yield increases, allowing us to maintain the average maturity of the portfolio
generally within a range of 40 to 75 days. The Trust continues to serve as a
very useful investment for liquidity, preservation of capital and a yield which
will reflect prevailing money market conditions.
We appreciate your support of Active Assets Money Trust and look forward to
continuing to serve your investment needs.
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO
---------------------------
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 2
ACTIVE ASSETS MONEY TRUST
PORTFOLIO OF INVESTMENTS December 31, 1994 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annualized
Principal Yield on
Amount (in Date of Maturity
thousands) Description Purchase Date Value
- ---------- -------------------------------------------- ---------------- --------------------- --------------
<C> <S> <C> <C> <C>
SHORT-TERM BANK NOTES (3.9%)
$ 25,000 Fifth Third Bank............................ 5.900% 02/28/95 $ 25,000,000
155,000 NBD Bank.................................... 5.060 to 5.140 01/09/95 to 02/06/95 155,000,000
--------------
TOTAL SHORT-TERM BANK NOTES
(AMORTIZED COST $180,000,000).......................................................... 180,000,000
--------------
BANKERS' ACCEPTANCES (2.2%)
10,000 Mellon Bank N.A. ........................... 5.678 03/27/95 9,867,417
10,000 Northern Trust Company...................... 5.078 02/03/95 9,953,250
85,000 Republic National Bank, N.Y. ............... 5.509 to 6.126 02/13/95 to 03/17/95 84,305,022
--------------
TOTAL BANKERS' ACCEPTANCES
(AMORTIZED COST $104,125,689).......................................................... 104,125,689
--------------
COMMERCIAL PAPER (85.1%)
AUTOMOTIVE: FINANCE (13.5%)
236,950 Chrysler Financial Corp. ................... 5.757 to 6.288 01/11/95 to 02/15/95 236,153,215
80,000 Daimler-Benz North America Corp. ........... 5.414 to 6.139 01/18/95 to 02/28/95 79,475,175
148,620 Ford Motor Credit Co. ...................... 5.461 to 6.404 01/03/95 to 04/20/95 147,654,253
170,000 General Motors Acceptance Corp. ............ 6.144 to 6.185 02/22/95 to 02/27/95 168,396,272
--------------
631,678,915
--------------
BANKS: COMMERCIAL (13.1%)
89,410 ABN AMRO N.A. Fin., Inc. ................... 6.134 to 6.232 04/21/95 to 04/24/95 87,725,364
72,000 Barclays U.S. Funding Corp. ................ 5.766 to 6.113 01/27/95 to 03/01/95 71,510,237
185,400 Canadian Imperial Holdings Inc. ............ 5.070 to 6.115 01/05/95 to 03/03/95 184,060,355
55,000 National Australia Funding
(Del), Inc. ................................ 5.085 to 5.571 01/06/95 to 02/01/95 54,833,300
100,750 National Westminster Bancorp, Inc. ......... 5.171 to 5.765 01/23/95 to 04/13/95 100,142,909
115,000 Toronto-Dominion Holdings
(USA), Inc. ................................ 5.191 to 5.867 02/22/95 to 05/02/95 113,772,100
--------------
612,044,265
--------------
BANK HOLDING COMPANIES (19.1%)
15,000 NBD Bancorp, Inc. .......................... 6.073 01/17/95 14,957,217
50,000 Chase Manhattan Corp. ...................... 6.309 03/29/95 49,241,000
157,850 Chemical Banking Corp. ..................... 5.108 to 6.351 02/01/95 to 03/30/95 156,594,111
25,000 Citicorp.................................... 5.628 02/08/95 24,849,688
130,000 Morgan (J.P.) & Co., Inc. .................. 5.552 to 6.194 01/31/95 to 03/22/95 128,913,486
208,750 NationsBank Corp. .......................... 5.409 to 5.924 01/09/95 to 02/27/95 207,526,799
115,000 Norwest Corp. .............................. 6.185 to 6.205 03/07/95 to 03/21/95 113,547,711
125,000 PNC Funding Corp. .......................... 5.839 to 6.124 02/07/95 to 02/10/95 124,183,833
75,000 Republic New York Corp. .................... 5.234 to 5.235 02/15/95 to 02/21/95 74,466,667
--------------
894,280,512
--------------
BROKERAGE (6.4%)
143,850 Goldman Sachs Group L.P. ................... 6.064 to 6.305 01/06/95 to 03/23/95 142,218,868
50,000 Merrill Lynch & Co., Inc. .................. 5.546 01/10/95 49,924,028
105,000 Morgan Stanley Group, Inc. ................. 5.480 to 6.300 01/05/95 to 03/08/95 104,558,840
--------------
296,701,736
--------------
EQUIPMENT (1.9%)
88,850 John Deere Capital Corp. ................... 5.077 to 5.165 01/20/95 to 01/31/95 88,541,737
--------------
ENERGY (1.3%)
60,000 Texaco, Inc. ............................... 5.691 to 5.709 01/09/95 to 01/27/95 59,831,100
--------------
FINANCE: DIVERSIFIED (19.7%)
80,000 Associates Corp. of N.A. ................... 5.432 to 5.513 01/04/95 to 01/06/95 79,937,840
75,000 Avco Financial Services, Inc. .............. 5.859 to 5.868 02/09/95 to 02/17/95 74,486,222
</TABLE>
<PAGE> 3
ACTIVE ASSETS MONEY TRUST
PORTFOLIO OF INVESTMENTS December 31, 1994 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annualized
Principal Yield on
Amount (in Date of Maturity
thousands) Description Purchase Date Value
- ---------- -------------------------------------------- ---------------- --------------------- --------------
<C> <S> <C> <C> <C>
$ 23,000 Beneficial Corp. ........................... 6.329% 03/29/95 $ 22,649,736
70,450 CIT Group Holdings, Inc. ................... 5.504 to 5.520 01/13/95 to 02/15/95 70,212,771
242,550 General Electric Capital Corp. ............. 5.056 to 6.840 01/11/95 to 08/08/95 238,841,071
100,000 Heller Financial, Inc. ..................... 5.609 to 5.859 01/19/95 to 02/14/95 99,407,287
125,000 Household Finance Corp. .................... 5.489 to 6.299 01/20/95 to 03/27/95 123,914,189
214,250 ITT Financial Corp. ........................ 5.516 to 6.192 01/03/95 to 02/14/95 213,549,852
--------------
922,998,968
--------------
FOODS (0.1%)
5,700 Hershey Foods Corp. ........................ 6.001 01/09/95 5,691,479
--------------
HEALTH CARE: DIVERSIFIED (3.4%)
31,100 Abbott Laboratories......................... 6.047 to 6.218 01/06/95 to 03/06/95 30,867,664
35,000 Schering Corp. ............................. 5.990 05/01/95 34,315,342
50,000 Schering-Plough Corp. ...................... 5.891 04/03/95 49,257,292
42,000 SmithKline Beecham Corp. ................... 5.697 03/14/95 41,524,770
--------------
155,965,068
--------------
OFFICE EQUIPMENT (0.6%)
30,000 Hewlett Packard Company..................... 5.718 04/17/95 29,504,233
--------------
RETAIL (1.2%)
57,500 Penney (J.C.) Funding Corp. ................ 5.866 02/06/95 57,157,236
--------------
RETAIL - FOOD CHAINS (0.2%)
9,810 McDonald's Corp. ........................... 5.920 01/17/95 9,782,668
--------------
TELEPHONE (4.6%)
218,000 AT&T Corp. ................................. 5.046 to 6.486 01/19/95 to 04/17/95 215,036,025
--------------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $3,979,213,942)........................................................ 3,979,213,942
--------------
VARIABLE COUPON RENEWABLE NOTE* (1.1%)
50,000 PNC Bank, N.A.
(Amortized Cost $49,986,609)................ 5.830 04/21/95 49,986,609
--------------
U.S. GOVERNMENT AGENCIES (6.8%)
12,000 Federal Farm Credit Bank.................... 7.067 09/05/95 11,444,480
188,400 Federal Home Loan Banks..................... 5.058 to 6.574 02/21/95 to 11/03/95 181,550,192
75,000 Federal Home Loan Mortgage Corp. ........... 5.779 to 5.996 04/05/95 to 10/13/95 73,228,508
54,450 Federal National Mortgage Association....... 5.361 to 6.182 03/09/95 to 08/02/95 53,453,869
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $319,677,049).......................................................... 319,677,049
--------------
U.S. GOVERNMENT OBLIGATIONS (0.9%)
45,000 U.S. Treasury Bills
(Amortized Cost $43,416,375)................ 5.561 to 5.857 07/27/95 to 09/21/95 43,416,375
--------------
TOTAL INVESTMENTS
(AMORTIZED COST $4,676,419,664) (A)............................ 100.0% 4,676,419,664
OTHER ASSETS IN EXCESS OF LIABILITIES.......................... 0.0 1,265,932
----- --------------
NET ASSETS..................................................... 100.0% $4,677,685,596
===== ==============
</TABLE>
- ---------------
* Floating rate security. Rate shown is the rate in effect at December 31,
1994.
(a) Cost is the same for federal income tax purposes.
See Notes to Financial Statements
<PAGE> 4
ACTIVE ASSETS MONEY TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994 (unaudited)
- --------------------------------------------------------
ASSETS:
Investments in securities, at value
(amortized cost $4,676,419,664)....... $ 4,676,419,664
Interest receivable..................... 3,259,649
Prepaid expenses and other assets....... 496,685
---------------
TOTAL ASSETS.................... 4,680,175,998
---------------
LIABILITIES:
Payable for:
Investment management fee............. 1,265,558
Plan of distribution fee.............. 399,374
Shares of beneficial interest
repurchased......................... 249,381
Accrued expenses and other payables..... 576,089
---------------
TOTAL LIABILITIES............... 2,490,402
---------------
NET ASSETS:
Paid-in-capital......................... 4,677,684,088
Accumulated undistributed net
investment income..................... 1,508
---------------
NET ASSETS...................... $ 4,677,685,596
==============
NET ASSET VALUE PER SHARE,
4,677,684,088 shares outstanding
(unlimited shares authorized
of $.01 par value)................... $1.00
=====
STATEMENT OF OPERATIONS For the
six months ended December 31, 1994
(unaudited)
- -------------------------------------------------------
NET INVESTMENT INCOME:
INTEREST INCOME........................ $ 115,485,377
---------------
EXPENSES
Investment management fee............. 7,406,123
Plan of distribution fee.............. 2,310,669
Transfer agent fees and expenses...... 1,254,339
Registration fees..................... 335,813
Custodian fees........................ 112,851
Shareholder reports and notices....... 63,526
Professional fees..................... 32,929
Trustees' fees and expenses........... 13,568
Other................................. 17,486
---------------
TOTAL EXPENSES...................... 11,547,304
---------------
NET INVESTMENT INCOME............. 103,938,073
---------------
NET REALIZED GAIN: 928
---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS..................... $ 103,939,001
==============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
six months ended For the
December 31, 1994 year ended
(unaudited) June 30, 1994
----------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................... $ 103,938,073 $ 115,379,736
Net realized gain....................................................... 928 62,706
----------------- --------------
Net increase.......................................................... 103,939,001 115,442,442
----------------- --------------
Dividends and distributions to shareholders from:
Net investment income................................................... (103,941,791) (115,376,388)
Net realized gain....................................................... (928) (62,706)
----------------- --------------
Total................................................................. (103,942,719) (115,439,094)
Net increase from transactions in shares of beneficial interest........... 533,616,127 539,762,623
----------------- --------------
Total increase........................................................ 533,612,409 539,765,971
NET ASSETS:
Beginning of period....................................................... 4,144,073,187 3,604,307,216
----------------- --------------
END OF PERIOD (including undistributed net investment income of
$1,508 and $5,226, respectively)........................................ $ 4,677,685,596 $4,144,073,187
================== ==============
</TABLE>
See Notes to Financial Statements
<PAGE> 5
ACTIVE ASSETS MONEY TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Active Assets Money Trust (the
"Trust") is registered under the Investment Company Act of 1940, as amended (the
"Act"), as a diversified, open-end management investment company. The Trust was
organized as a Massachusetts business trust on March 30, 1981 and 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). Realized gains
and losses on security transactions are determined on the identified cost
method. The Trust amortizes premiums and discounts on securities purchased
over the life of the respective securities. Interest income is accrued
daily.
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 and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders -- The Trust records
dividends and distributions to shareholders as of the close of each
business day.
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement with Dean Witter InterCapital Inc. (the "Investment Manager"), the
Trust pays its Investment Manager a management fee, accrued daily and payable
monthly, by applying the following annual rates to the net assets of the Trust
determined as of the close of each business day: 0.50% to the portion of the
daily net assets not exceeding $500 million; 0.425% to the portion of the daily
net assets exceeding $500 million but not exceeding $750 million; 0.375% to the
portion of the daily net assets exceeding $750 million but not exceeding $1
billion; 0.35% to the portion of the daily net assets exceeding $1 billion but
not exceeding $1.5 billion; 0.325% to the portion of the daily net assets
exceeding $1.5 billion but not exceeding $2 billion; 0.30% to the portion of the
daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.275% to
the portion of the daily net assets exceeding $2.5 billion but not exceeding $3
billion; and 0.25% to 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, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the 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 -- Dean Witter Distributors Inc. (the "Distributor"),
an affiliate of the Investment Manager, is the distributor of the Trust's shares
and, in accordance with a Plan of Distribution (the "Plan") pursuant to Rule
12b-1 under the Act, finances certain expenses in connection therewith.
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
<PAGE> 6
ACTIVE ASSETS MONEY TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
below. The following activities and services may be provided by the Distributor
and other broker-dealers under the Plan: (1) compensation to and expenses 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
the Trust's shares; (3) expenses incurred in connection with promoting sales of
the Trust's 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 the Distributor for specific expenses
the Distributor incurs or plans to incur 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 annual rate of 0.15% of the Trust's
average daily net assets during the month. Expenses incurred by the Distributor
pursuant to the Plan in any fiscal year will not be reimbursed by the Trust
through payments accrued in any subsequent fiscal year. For the six months ended
December 31, 1994, the distribution fee was accrued at the annual rate of 0.10%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and proceeds from sales/maturities of portfolio securities for the six
months ended December 31, 1994 aggregated $9,978,600,377 and $9,550,456,505,
respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Trust's transfer agent. At December 31, 1994, the Trust had
transfer agent fees and expenses payable of approximately $208,000.
The Trust established an unfunded noncontributory defined benefit pension
plan covering all independent Trustees of the Trust 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 six months ended December
31, 1994, included in Trustees' fees and expenses in the Statement of Operations
amounted to $4,092. At December 31, 1994, the Trust had an accrued pension
liability of $46,903 included in accrued expenses in the Statement of Assets and
Liabilities.
5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
For the six For the
months ended year ended
December 31, 1994 June 30, 1994
----------------- ---------------
<S> <C> <C>
Shares sold............................................. 9,873,906,537 18,356,737,820
Shares issued in reinvestment of dividends.............. 103,721,141 115,190,871
----------------- ---------------
9,977,627,678 18,471,928,691
Shares repurchased...................................... (9,444,011,551) (17,932,166,068)
----------------- ---------------
Net increase in shares outstanding...................... 533,616,127 539,762,623
=============== ===============
</TABLE>
<PAGE> 7
ACTIVE ASSETS MONEY TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
For the six
months ended For the year ended June 30,
December 31, 1994 ---------------------------------------------------
(unaudited) 1994 1993 1992 1991 1990
----------------- ------- ------- ------- ------- -------
<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...... 0.022 0.029 0.029 0.045 0.068 0.081
Less dividends from net
investment income........ (0.022) (0.029) (0.029) (0.045) (0.068) (0.081)
----------------- ------- ------- ------- ------- -------
Net asset value,
end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=============== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN.... 2.27%(1) 2.99% 2.95% 4.58% 7.05% 8.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in millions)............ $ 4,678 $ 4,144 $ 3,604 $ 3,628 $ 3,688 $ 3,454
Ratios to average net
assets:
Expenses................. 0.50%(2) 0.51% 0.51% 0.54% 0.52% 0.50%
Net investment income.... 4.50%(2) 2.95% 2.90% 4.45% 6.80% 8.10%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE> 8
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
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
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Trust without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of the 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.
ACTIVE
ASSETS (R)
ACCOUNT
ACTIVE ASSETS
MONEY TRUST
SEMIANNUAL REPORT
December 31, 1994
