<PAGE> 1
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST Two World Trade Center, New
York, New York 10048
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
As of July 31, 1995, Dean Witter U.S. Government Money Market Trust had net
assets in excess of $925 million, with an average life of 61 days. The Trust's
net annualized yield for the six-month period was 5.05 percent and its net
annualized yield for July was 4.92 percent.
STABILIZING YIELDS
While rates available to the Trust rose during the second half of 1994, the
first half of 1995 brought stable and slightly declining yield levels. The yield
on three-month U.S. Treasury bills, for example, rose from 4.25 percent in early
July 1994, to over 5.50 percent by late December 1994. They remained rather
stable during the first five months of 1995, before declining to 5.40 percent by
late July.
On the economic front, inflation rates have remained in check, with consumer
prices for 1994 rising by 2.7 percent and the fixed-weight price index at a 3.3
percent annual rate so far in 1995. As we enter the second half of 1995, it
appears the Federal Reserve Board may be successfully orchestrating a "soft
landing" for the economy while restraining inflationary pressures.
PORTFOLIO COMPOSITION AND STRUCTURE
On July 31, 1995, approximately 97 percent of the Trust's portfolio was invested
in Federal agency obligations, one percent invested in U.S. Treasury bills and
two percent in repurchase agreements. Three-quarters of the Trust's assets were
due to mature in less than three months. Therefore, the portfolio is well
positioned for stability of value with a high degree of liquidity.
You can be assured that we continue to operate the Trust in a straight-forward,
conservative style without "structured notes" or derivatives.
<PAGE> 2
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
LETTER TO SHAREHOLDERS, continued
THE OUTLOOK
Despite a 25 basis point (one-quarter percentage point) cut in the federal-funds
rate on July 6, 1995, we believe that the Federal Reserve is waiting for a
sustained confirmation of weak economic trends before taking further actions to
reduce short-term rates. The money market yield curve had a positive upward
slope during 1994, but became flatter and mildly negatively-sloped in May
through July of 1995. This means that the consensus opinion in the money market
was anticipating lower yield levels for later in 1995.
The Trust continues to serve as a very useful investment for liquidity and
preservation of capital with a yield which will reflect prevailing money market
conditions. We appreciate your ongoing support of Dean Witter U.S. Government
Money Market 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> 3
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
PORTFOLIO OF INVESTMENTS July 31, 1995 (unaudited)
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF MATURITY
THOUSANDS PURCHASE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATION (0.8%)
$ 8,000 U.S. Treasury Bill
(Amortized Cost
$7,861,852).......... 6.01 % 11/16/95 $ 7,861,852
----------
U.S. GOVERNMENT AGENCIES (97.9%)
153,040 Federal Farm Credit
Bank................. 5.57 to 6.17 08/15/95 to 01/05/96 151,159,277
329,105 Federal Home Loan
Banks................ 5.57 to 6.79 08/02/95 to 01/25/96 325,680,699
129,435 Federal Home Loan
Mortgage Corp. ...... 5.82 to 6.44 08/16/95 to 10/12/95 128,524,530
222,815 Federal National
Mortgage
Association.......... 5.57 to 6.20 09/07/95 to 12/28/95 220,318,481
50,000 Student Loan
Marketing
Association.......... 5.59 to 5.68 08/01/95 to 08/10/95 50,000,000
30,000 Tennessee Valley
Authority............ 5.62 to 5.68 09/08/95 to 09/12/95 29,810,733
----------
TOTAL U.S. GOVERNMENT AGENCIES
(Amortized Cost $905,493,720).................................. 905,493,720
----------
REPURCHASE AGREEMENTS (1.9%)
17,000 Dillon Read & Co.,
Inc. (dated 07/31/95;
proceeds $17,002,763;
collateralized by
$18,325,000 U.S.
Treasury Bill due
07/25/96 valued at
$17,344,613)......... 5.85 08/01/95 17,000,000
----------
382 The Bank of New York
(dated 07/31/95;
proceeds $382,128;
collateralized by
$378,885 Federal
Mortgage Acceptance
Corp. 9.50% due
04/01/01 valued at
$397,158)............ 5.8125 08/01/95 382,066
----------
TOTAL REPURCHASE AGREEMENTS
(Identified Cost $17,382,066).................................. 17,382,066
----------
TOTAL INVESTMENTS
(Identified Cost $930,737,638)(a)...................... 100.6% $ 930,737,638
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (0.6) (5,642,477)
---- ----------
NET ASSETS............................................. 100.0% $ 925,095,161
==== ==========
</TABLE>
- ---------------------
(a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
July 31, 1995 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $930,737,638)....................................... $930,737,638
Cash.................................................................. 89,635
Receivable for:
Interest.......................................................... 971,298
Shares of beneficial interest sold................................ 307,104
Prepaid expenses and other assets..................................... 123,614
-----------
TOTAL ASSETS...................................................... 932,229,289
-----------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased......................... 6,184,678
Investment management fee......................................... 355,958
Plan of distribution fee.......................................... 77,936
Accrued expenses and other payables................................... 515,556
-----------
TOTAL LIABILITIES................................................. 7,134,128
-----------
NET ASSETS:
Paid-in-capital....................................................... 925,093,358
Accumulated undistributed net investment income....................... 1,803
-----------
NET ASSETS........................................................ $925,095,161
===========
NET ASSET VALUE PER SHARE,
925,093,358 shares outstanding (unlimited shares authorized of
$.01 par value)...................................................... $1.00
====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended July 31, 1995 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME........................................................ $26,156,486
---------
EXPENSES
Transfer agent fees and expenses....................................... 2,094,856
Investment management fee.............................................. 1,967,123
Plan of distribution fee............................................... 383,642
Registration fees...................................................... 73,915
Shareholder reports and notices........................................ 71,020
Custodian fees......................................................... 26,896
Professional fees...................................................... 25,715
Trustees' fees and expenses............................................ 16,656
Other.................................................................. 7,077
---------
TOTAL EXPENSES..................................................... 4,666,900
---------
NET INVESTMENT INCOME AND NET INCREASE............................. $21,489,586
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 6
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
<S> <C> <C>
FOR THE SIX
MONTHS FOR THE YEAR
ENDED ENDED
JULY 31, JANUARY 31,
1995 1995
------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income and net increase............... $ 21,489,586 $ 26,720,734
Dividends to shareholders from net investment
income.............................................. (21,489,274) (26,720,157)
Net increase (decrease) from transactions in shares
of beneficial interest.............................. 115,601,575 (8,110,218)
---------- ----------
TOTAL INCREASE (DECREASE)........................ 115,601,887 (8,109,641)
NET ASSETS:
Beginning of period.................................. 809,493,274 817,602,915
---------- ----------
END OF PERIOD
(Including undistributed net investment income of
$1,803 and $1,491, respectively).................. $925,095,161 $809,493,274
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 7
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS July 31, 1995 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter U.S. Government Money Market 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 November 18, 1981 and commenced operations on
February 17, 1982.
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 by the identified cost method.
Premiums are amortized and discounts are accreted on securities purchased over
the life of the respective securities.
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 -- The Trust records dividends
and distributions 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.
<PAGE> 8
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS July 31, 1995 (unaudited) continued
Under the terms of the Agreement, 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 below. The following
activities and services may be provided by the Distributor, Dean Witter Reynolds
Inc. ("DWR"), an affiliate of the Distributor and Investment Manager, its
affiliates and other selected broker-dealers under the Plan: (1) compensation
to, and expenses of, account executives of DWR and other selected broker-dealers
and other employees, including overhead and telephone expenses; (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
July 31, 1995, the distribution fee was accrued at the annual rate of 0.09%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales/maturities of portfolio securities
for the six months ended July 31, 1995 aggregated $5,786,020,160 and
$5,695,506,327, respectively.
<PAGE> 9
DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS July 31, 1995 (unaudited) continued
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Trust's transfer agent. At July 31, 1995, the Trust had
transfer agent fees and expenses payable of approximately $372,000.
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 July 31,
1995 included in Trustees' fees and expenses in the Statement of Operations
amounted to $4,047. At July 31, 1995, the Trust had an accrued pension liability
of $50,574 which is 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 YEAR
MONTHS ENDED ENDED
JULY 31, JANUARY 31,
1995 1995
------------ --------------
<S> <C> <C>
Shares sold........................................................................ 968,263,331 1,791,101,896
Shares issued in reinvestment of dividends......................................... 21,416,161 26,615,046
------------ --------------
989,679,492 1,817,716,942
Shares repurchased................................................................. (874,077,917) (1,825,827,160)
------------ --------------
Net increase (decrease)............................................................ 115,601,575 (8,110,218)
============ ==============
</TABLE>
<PAGE> 10
DEAN WITTER U.S. GOVERNMENT MONEY MARKET 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 JANUARY 31
JULY 31, ---------------------------------------------------
1995 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
(unaudited)
<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....................... 0.025 0.034 0.023 0.029 0.050 0.070
Less dividends from net investment income... (0.025) (0.034) (0.023) (0.029) (0.050) (0.070)
------ ------ ------ ------ ------ ------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN..................... 2.99%(1) 3.47% 2.28% 2.89% 5.14% 7.20%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................... 1.10%(2) 1.08% 1.00% 0.93% 0.89% 0.99%
Net investment income....................... 5.05%(2) 3.38% 2.23% 2.87% 5.02% 6.97%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions...... $925 $809 $818 $1,027 $1,115 $1,217
</TABLE>
- ---------------------
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 11
[This page has been left blank intentionally.]
<PAGE> 12
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 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
Trusgt unless preceded or accompanied by an effective prospectus.
DEAN WITTER
U.S. GOVERNMENT
MONEY MARKET TRUST
[LOGO]
SEMIANNUAL REPORT
JULY 31, 1995
