<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- -----------------------------------------------------------------------------
Strong economic growth and a shift in Federal Reserve Board monetary
policy during the first half of 1994 resulted in the sharpest increase in
interest rates in more than six years. At the beginning of the year, most
economic indicators were pointing toward a vigorous recovery. Concerns over
potential inflationary pressure developed as the job market approached full
employment and commodity prices remained volatile. The Federal Reserve Board
responded by tightening monetary policy. Between February and May, the
central bank raised the federal-funds rate--the interest rate banks charge
each other for overnight loans--from 3.00 percent to 4.25 percent in four
separate moves. In May, the discount rate--the interest rate the Federal
Reserve charges member banks for loans--was increased by 50 basis points to
3.50 percent.
Long-term municipal bond yields, as measured by THE BOND BUYER Revenue
Bond Index,* were little changed between October and January. However, in
February and March the Index yield rose 89 basis points from 5.50 percent to
6.39 percent. During April, May and June the municipal market began to show
signs of stability, despite 15 to 20 basis point yield changes each month. At
the end of June the Index yielded 6.56 percent.
The municipal market is also influenced by unique supply and demand
conditions. New-issue underwriting totaled a record $290 billion in 1993. The
pace of new-issue activity over the first half of 1994, however, slowed 40
percent to a projected annual rate of $180 billion. By way of comparison,
bond maturities and calls for redemptions will reduce municipal debt
outstanding by approximately $190 billion. This imbalance helped municipal
securities outperform their U.S. Treasury counterparts during the second
quarter.
PERFORMANCE
For the six-month period ended June 30, 1994, Dean Witter Select Municipal
Reinvestment Fund paid shareholders tax-free income dividends totaling $0.33
per share. The Fund's total return for this period was -5.26 percent and is a
result of the portfolio's decline in value. Since inception the Fund has
provided shareholders with an attractive average annual total return of 9.04
percent. The Fund's net assets exceeded $91 million.
PORTFOLIO STRUCTURE
The net short-term investment position at the end of June was 4.2 percent.
Refunded bonds with escrows set to be called within 10 years comprised
another 10 percent of the portfolio. Long-term investments were diversified
among 11 specific municipal sectors and 55 credits. The three largest sectors
in the portfolio were water & sewer, transportation facilities and
educational facilities revenue bonds, comprising 49 percent of net assets.
Ohio, New York, California, Maryland and Arizona are the five largest states
of issuance among the 26 states (including the District of Columbia and
Puerto Rico)
- ---------------
1 * THE BOND BUYER Revenue Bond Index is an arithmetic average of the yields of
25 selected municipal revenue bonds with 30-year maturities. Ratings of these
bonds range from Aa1 to Baa1, as measured by Moody's and AA+ to A-, as
measured by Standard & Poor's.
<PAGE>
<PAGE>
represented in the portfolio. The average maturity and call protection of the
Fund's long-term holdings were 19 years and 7 years, respectively. The credit
quality ratings of the long-term portfolio are summarized below:
<TABLE>
<CAPTION>
MOODY'S OR STANDARD & POOR'S
RATING PERCENT
- ---------------------------------- ---------
<S> <C>
Aaa or AAA ........................ 23
Aa or AA .......................... 29
A or A ............................ 41
Baa or BBB ........................ 2
Not rated ......................... 5
</TABLE>
LOOKING AHEAD
A continuation of low new-issue supply coupled with significant bond calls
and maturities should help support municipal bond values, as well as sustain
investor demand for municipal securities. However, the overall direction of
interest rates will primarily be determined by the strength of the economy,
the trend of inflation and the Federal Reserve Board's response to economic
conditions. The level of interest rates and bond redemption activity are the
key factors expected to influence the Fund's future results.
We appreciate your ongoing support of Dean Witter Select Municipal
Reinvestment Fund 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>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ------ -------- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (95.8%)
GENERAL OBLIGATION (5.1%)
$ 2,000 Washington Suburban Sanitation District, Maryland, General
Construction Refg 1994 .................................................5.00 % 6/ 1/14 $ 1,733,680
3,000 New York City, New York, 1990 Ser D .....................................6.00 8/ 1/07 2,910,000
- ----------- -------------
5,000 4,643,680
- ----------- -------------
EDUCATIONAL FACILITIES REVENUE (14.3%)
2,000 Price-Elliot Research Park Inc, Arizona, Arizona State University
Refg Ser 1991 (MBIA Insured) ...........................................7.00 7/ 1/21 2,093,680
3,000 Georgetown University, District of Columbia, Ser 1993 ...................5.375 4/ 1/23 2,502,180
2,000 Morgan State University, Maryland, Academic & Auxiliary Fees
1990 Ser A (MBIA Insured) (Prerefunded) ................................7.00 7/ 1/20 2,217,360
2,000 Massachusetts Health & Education Facilities Authority, Boston College
Ser K ..................................................................5.25 6/ 1/18 1,728,900
1,500 Rutgers--The State University, New Jersey, Refg Ser R ...................6.50 5/ 1/13 1,535,925
2,000 New York State Dormitory Authority, State University Ser 1989 B ........0.00 5/15/03 1,149,360
1,000 Ohio Higher Educational Facility Commission, Oberlin College Ser 1993 ..5.375 10/ 1/15 888,070
1,000 Loudon County Industrial Development Authority, Virginia, The George
Washington University Refg Ser of 1992 .................................6.25 5/15/22 981,790
- ----------- -------------
14,500 13,097,265
- ----------- -------------
ELECTRIC REVENUE (11.0%)
1,000 Northern California Power Agency, Geothermal #3--1987 Refg Ser A
(Crossover Refunded) ...................................................7.00 7/ 1/07 1,040,180
2,500 Nebraska Public Power District, Power Supply 1993 Ser ...................6.125 1/ 1/15 2,419,300
1,000 Fayetteville, North Carolina, Public Works Ser 1990 (FGIC Insured)
(Prerefunded) ..........................................................6.50 3/ 1/14 1,081,060
665 North Carolina Municipal Power Agency #1, Catawba Ser 1985 A ...........7.00 1/ 1/20 680,395
1,000 Austin, Texas, Utilities Refg Ser 1993 A ................................5.625 5/15/16 899,580
2,000 Intermountain Power Agency, Utah, Refg 1985 Ser H .......................6.00 7/ 1/21 1,863,900
1,000 Snohomish County Public Utilities District #1, Washington, Ser 1993
(FGIC Insured) ........................................................6.00 1/ 1/18 933,350
3,000 Washington State Public Power Supply System, Proj #2
Refg Ser 1994 A (FGIC Insured) .........................................0.00 7/ 1/09 1,140,720
- ----------- -------------
12,165 10,058,485
- ----------- -------------
HOSPITAL REVENUE (11.2%)
1,000 Maine Health & Higher Educational Facilities Authority, Maine Medical
Center Ser 1986 (Prerefunded) .........................................7.375 10/ 1/13 1,077,360
2,000 Maryland Health & Higher Educational Facilities Authority, University
of Maryland Medical Ser 1991 A (FGIC Insured) (Prerefunded) ..........6.50 7/ 1/21 2,141,380
2,000 Saint Cloud, Minnesota, The Saint Cloud Hospital Ser 1990 B
(AMBAC Insured) (Prerefunded) ..........................................7.00 7/ 1/20 2,224,540
2,000 Clermont County, Ohio, Mercy Health Ser 1991 Special MLDs
(AMBAC Insured) ........................................................6.733 10/ 5/21 2,087,580
2,500 North Central Texas Health Facilities Development Corporation,
University Medical Center Ser 1989 .....................................8.20 4/ 1/19 2,691,075
- ----------- -------------
9,500 10,221,935
- ----------- -------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE (10.8%)
750 California Alternative Energy Source Financing Authority,
SRI International Cogeneration Ser 1985 (a) ............................9.75 12/ 1/05 375,000
Connecticut Development Authority, Bridgeport Hydraulic Co
700 Refg Ser 1990 ..........................................................7.25 6/ 1/20 745,850
2,000 Refg 1994 Ser A (MBIA Insured) (b) .....................................6.05 3/ 1/29 1,918,800
1,500 Michigan Strategic Fund, Ford Motor Co Refg Ser 1991 A ..................7.10 2/ 1/06 1,624,500
1,000 Claiborne County, Mississippi, Middle South Energy Inc Ser C ...........9.875 12/ 1/14 1,151,190
<PAGE>
<PAGE>
<CAPTION>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited) (continued)
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ------ -------- -----
<S> <C> <C> <C> <C>
$ 2,000 Ohio Water Development Authority, Dayton Power & Light Co
Collateralized Refg 1992 Ser A ......................................... 6.40 % 8/15/27 $ 1,964,700
1,500 Matagorda County Navigational District #1, Texas, Central Power &
Light Co Collateralized Ser 1984 A .................................... 7.50 12/15/14 1,608,630
500 Russell County Industrial Development Authority, Virginia,
Appalachian Power Co Ser G ............................................. 7.70 11/ 1/07 537,085
- ----------- -------------
9,950 9,925,755
- ----------- -------------
MORTGAGE REVENUE--MULTI-FAMILY (1.6%)
1,000 Michigan Housing Development Authority, Rental 1992 Ser A .............. 6.60 4/ 1/12 999,850
400 Pennsylvania Housing Finance Agency, Moderate Rehabilitation--
Section 8 Assisted Issue B ............................................. 9.00 8/ 1/01 421,984
- ----------- -------------
1,400 1,421,834
- ----------- -------------
MORTGAGE REVENUE--SINGLE FAMILY (1.5%)
1,365 Maricopa County Industrial Development Authority, Arizona,
Refg 1991 Ser A ........................................................ 7.50 8/ 1/12 1,388,191
10 Huntington Beach, California, Financing Program 1984 A ..................11.00 7/ 1/17 10,220
5 Riverside County, California, Issue of 1984 .............................10.50 9/ 1/14 4,961
- ----------- -------------
1,380 1,403,372
- ----------- -------------
PUBLIC FACILITIES REVENUE (4.3%)
2,000 California Public Works Board, Corrections 1993 Ser D ................... 5.375 6/ 1/12 1,742,720
1,000 Hennepin County, Minnesota, Ser 1991 COPs ............................... 6.80 5/15/17 1,056,150
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1988 A . 7.90 7/ 1/07 1,100,890
- ----------- -------------
4,000 3,899,760
- ----------- -------------
TRANSPORTATION FACILITIES REVENUE (16.6%)
2,000 Los Angeles County Metropolitan Transportation Authority, California,
Sales Tax Refg Ser 1993 A (MBIA Insured) ............................... 5.625 7/ 1/18 1,808,900
2,000 Los Angeles County Transportation Commission, California, Sales
Tax Ser 1991 B ......................................................... 6.50 7/ 1/13 2,010,780
3,500 Kentucky Turnpike Authority, Resource Recovery Road
1987 Ser A BIGS ........................................................ 0.00 7/ 1/06 3,535,000
1,500 Albuquerque, New Mexico, Gross Receipts Tax--Airport Supported
Sub Lien Ser 12/84 .................................................... 8.25 7/ 1/14 1,596,960
2,000 Ohio Turnpike Commission, 1994 Ser A .................................... 5.75 2/15/24 1,813,420
2,000 Pennsylvania Turnpike Commission, Ser A of 1986 ......................... 6.00 12/ 1/17 1,871,300
3,000 Puerto Rico Highway & Transportation Authority, Refg Ser X ............. 5.25 7/ 1/21 2,512,320
- ----------- -------------
16,000 15,148,680
- ----------- -------------
WATER & SEWER REVENUE (17.7%)
3,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien Water
Ser 1994 ............................................................... 5.45 7/ 1/19 2,643,450
2,000 Maryland Water Quality Financing Administration, 1990 Ser A ............ 7.25 9/ 1/11 2,180,840
2,000 Boston Water & Sewer Commission, Massachusetts, 1992 Ser A ............. 6.00 11/ 1/15 1,948,200
1,500 Massachusetts Water Resources Authority, 1993 Ser C ..................... 5.25 12/ 1/08 1,364,040
500 Minnesota Public Facilities Authority, Water Pollution Ser 1991 A ...... 6.95 3/ 1/13 538,775
2,000 Suffolk County Industrial Development Agency, New York, Suffolk
County Southwest Sewer Ser 1994 (FGIC Insured) ......................... 4.75 2/ 1/09 1,737,120
1,000 Columbus, Ohio, Sewerage Refg Ser 1992 .................................. 6.25 6/ 1/08 1,017,660
Spartanburg, South Carolina, Water Impr
1,250 Refg Ser A 1992 ........................................................ 6.25 6/ 1/12 1,244,588
1,700 Refg Ser A 1992 ........................................................ 6.25 6/ 1/17 1,667,445
2,000 Metropolitan Government of Nashville & Davidson County,
Tennessee, Refg of 1986 ................................................ 5.50 1/ 1/16 1,804,240
- ----------- -------------
16,950 16,146,358
- ----------- -------------
<PAGE>
<PAGE>
<CAPTION>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited) (continued)
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ------ -------- -----
<S> <C> <C> <C> <C>
OTHER REVENUE (1.7%)
$ 1,500 New York Local Government Assistance Corporation, Ser 1991 D ...........7.00 % 4/ 1/11 $ 1,562,115
- ----------- -------------
92,345 TOTAL MUNICIPAL BONDS (IDENTIFIED COST $85,435,880) ........................................... 87,529,239
- ----------- -------------
SHORT-TERM MUNICIPAL OBLIGATION (4.0%)
3,700 Illinois Health Facilities Authority, Franciscan Sisters Health Care
Corp Ser 1992 (Tender 7/1/94) (Identified Cost $3,700,000) ............3.40* 5/ 1/11 3,700,000
- ----------- -------------
$96,045 TOTAL INVESTMENTS (Identified Cost $89,135,880) (c) ............................... 99.8% 91,229,239
===========
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 0.2 183,937
----------- -------------
NET ASSETS ........................................................................100.0% $91,413,176
=========== =============
<FN>
- ---------------
BIGS Bond Income Growth Security
COPs Certificates of Participation
MLDs Municipal Long-Term Debt
* Variable or floating rate securities. Coupon rate shown reflects current
rate.
(a) Partial interest paid. Interest income is recorded as received.
(b) Security purchased on a when issued basis.
(c) The aggregate cost for federal income tax purposes is $89,135,880; the
aggregate gross unrealized appreciation is $5,282,876 and the aggregate
gross unrealized depreciation is $3,189,517, resulting in net
unrealized appreciation of $2,093,359.
</TABLE>
See Notes to Financial Statements
GEOGRAPHIC SUMMARY OF INVESTMENTS
Based on Market Value as a Percent of Net Assets
June 30, 1994 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Arizona .............. 6.7%
California .......... 7.6
Connecticut ......... 2.9
District of Columbia 2.7
Illinois ............ 4.0
Kentucky ............ 3.9
Maine ............... 1.2
Maryland ............ 7.2%
Massachusetts ....... 5.5
Michigan ............ 2.9
Minnesota ........... 4.2
Mississippi ......... 1.3
Nebraska ............ 2.6
New Jersey .......... 1.7
New York ............ 8.0%
New Mexico .......... 1.7
North Carolina ...... 1.9
Ohio ................ 8.5
Pennsylvania ........ 2.5
Puerto Rico ......... 4.0
South Carolina ...... 3.2
Tennessee ........... 2.0%
Texas ............... 5.7
Utah ................ 2.0
Virginia ............ 1.7
Washington .......... 4.2
------
Total 99.8%
======
</TABLE>
<PAGE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1994 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $89,135,880) (Note 1) .. $91,229,239
Cash ...................................... 120,040
Receivable for:
Interest ................................. 1,707,178
Investments sold ......................... 580,207
Prepaid expenses and other assets ........ 26,270
-------------
TOTAL ASSETS ............................ 93,662,934
-------------
LIABILITIES:
Payable for:
Investments purchased .................... 1,978,480
Shares of beneficial interest repurchased 163,395
Investment management fee (Note 2) ...... 38,347
Accrued expenses (Note 3) ................. 69,536
-------------
TOTAL LIABILITIES ....................... 2,249,758
-------------
NET ASSETS:
Paid-in-capital ........................... 88,367,912
Accumulated undistributed net realized
gain on investments ...................... 671,783
Net unrealized appreciation on investments 2,093,359
Accumulated undistributed net investment
income ................................... 280,122
-------------
NET ASSETS .............................. $91,413,176
=============
NET ASSET VALUE PER SHARE, 7,736,078
shares outstanding (unlimited authorized
shares of $.01 par value) ................ $11.82
=============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1994 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
INTEREST INCOME ...................... $ 2,952,023
-------------
EXPENSES
Investment management fee (Note 2) . 236,427
Transfer agent fees and expenses ... 137,800
Professional fees ................... 23,713
Shareholder reports and notices .... 22,457
Registration fees ................... 21,105
Trustees' fees and expenses ......... 9,387
Other ............................... 16,958
-------------
TOTAL EXPENSES ..................... 467,847
-------------
NET INVESTMENT INCOME ............. 2,484,176
-------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (Note 1):
Net realized gain on investments .... 397,955
Net change in unrealized appreciation
on investments ...................... (8,284,986)
-------------
NET LOSS ON INVESTMENTS ............ (7,887,031)
-------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........ $(5,402,855)
=============
</TABLE>
<PAGE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
JUNE 30, 1994 ENDED DECEMBER
(UNAUDITED) 31, 1993
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .................................................. $ 2,484,176 $ 4,639,611
Net realized gain on investments ....................................... 397,955 687,390
Net change in unrealized appreciation on investments ................... (8,284,986) 4,565,906
------------ ------------
Net increase (decrease) in net assets resulting from operations ...... (5,402,855) 9,892,907
------------ ------------
Dividends and distributions to shareholders from:
Net investment income .................................................. (2,540,837) (4,564,504)
Net realized gain on investments ....................................... -0- (387,730)
------------ ------------
Total dividends and distributions ..................................... (2,540,837) (4,952,234)
------------ ------------
Net increase from transactions in shares of beneficial interest (Note 4). 3,091,965 15,406,570
------------ ------------
Total increase (decrease) ............................................. (4,851,727) 20,347,243
NET ASSETS:
Beginning of period ..................................................... 96,264,903 75,917,660
------------ ------------
END OF PERIOD (including undistributed net investment income of $280,122
and $336,783, respectively) ............................................ $91,413,176 $96,264,903
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (unaudited)
- -----------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Select Municipal
Reinvestment Fund (the "Fund") is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment
company. The Fund was organized as a Massachusetts business trust on June 1,
1983 and commenced operations on September 22, 1983.
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 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. In computing net investment income, the Fund
amortizes premiums and original issue discounts. With respect to market
discount on bonds purchased after April 30, 1993, a portion of any
capital gain realized upon disposition may be 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 nontaxable
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 with Dean Witter InterCapital Inc. (the "Investment Manager"), the
Fund pays its Investment Manager a monthly management fee, calculated and
accrued daily, by applying the annual rate of 0.50% to the daily net assets
of the Fund.
<PAGE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- -----------------------------------------------------------------------------
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund'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 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.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended June 30, 1994 aggregated
$13,956,114 and $12,167,573, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At June 30, 1994, the Fund had transfer agent fees and
expenses payable of approximately $30,000.
4. SHARES OF BENEFICIAL INTEREST --Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE FOR THE YEAR ENDED DECEMBER
30, 1994 (UNAUDITED) 31, 1993
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Sold ......................... 1,837,389 $ 22,889,546 4,540,460 $ 57,002,124
Reinvestment of dividends and
distributions ............... 201,102 2,463,383 382,816 4,821,330
------------- -------------- ------------- --------------
2,038,491 25,352,929 4,923,276 61,823,454
Repurchased .................. (1,810,885) (22,260,964) (3,677,938) (46,416,884)
------------- -------------- ------------- --------------
Net increase ................. 227,606 $ 3,091,965 1,245,338 $ 15,406,570
============= ============== ============= ==============
</TABLE>
<PAGE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- -----------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED DECEMBER 31,
MONTHS ENDED ------------------------------------------------------
JUNE 30, 1994
(UNAUDITED) 1993 1992 1991 1990 1989
-------------- ---------- --------- --------- --------- ---------
PER SHARE OPERATING
PERFORMANCE:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ........................... $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41 $ 11.08
--------------- --------- --------- --------- --------- ---------
Net investment income ............ 0.33 0.67 0.70 0.71 0.70 0.68
Net realized and unrealized gain
(loss) on investments ........... (1.00) 0.75 0.32 0.62 (0.15) 0.33
--------------- --------- --------- --------- --------- ---------
Total from investment operations (0.67) 1.42 1.02 1.33 0.55 1.01
--------------- --------- --------- --------- --------- ---------
Less dividends and distributions:
Dividends from net investment
income .......................... (0.33) (0.67) (0.70) (0.69) (0.71) (0.68)
Distributions from net realized
gain on investments ............ -0- (0.05) (0.09) -0- -0- -0-
--------------- --------- --------- --------- --------- ---------
Total dividends and
distributions ................... (0.33) (0.72) (0.79) (0.69) (0.71) (0.68)
--------------- --------- --------- --------- --------- ---------
Net asset value, end of period .. $ 11.82 $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41
=============== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN ........... (5.26%)(1) 11.99% 8.88% 12.04% 5.27% 9.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) ...................... $91,413 $96,265 $75,918 $67,903 $60,304 $52,485
Ratio of expenses to average net
assets .......................... 0.99%(2) 1.02% 1.14% 1.20% 1.21% 1.40%
Ratio of net investment income
to average net assets ........... 5.25%(2) 5.25% 5.79% 6.06% 6.12% 5.90%
Portfolio turnover rate .......... 13% 9% 13% 30% 22% 15%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE>
<PAGE>
TRUSTEES
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Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
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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
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Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
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Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
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Price Waterhouse
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
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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 Fund 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
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
SELECT MUNICIPAL
REINVESTMENT
FUND
SEMIANNUAL REPORT
JUNE 30, 1994
