<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
Two World Trade Center,
New York, New York 10048
LETTER TO THE SHAREHOLDERS
June 30, 1996
DEAR SHAREHOLDER:
During the first half of 1996, the fixed income market outlook shifted from
bullishness associated with a weak economy and low inflation to bearishness
caused by stronger economic growth and the potential threat of renewed
inflation. This change in market psychology began in earnest after a
surprisingly large increase in payroll employment was reported in early
March. Other measures of economic activity and rising commodity prices added
to the concern. In addition, the market began to speculate that the Federal
Reserve Board would reverse its series of interest rate reductions with a
move toward higher interest rates. The bond market reacted to these
expectations by pushing long-term yields sharply higher.
MUNICIPAL MARKET CONDITIONS
Municipal bond yields as measured by 30-year insured revenue bonds began the
year at 5.50 percent. Interest rates subsequently began to rise in
mid-February on signs of stronger economic growth and reached a high of 6.15
percent in April and again in mid-June before finishing the first half of
1996 at 5.90 percent. Yields on one-year municipal notes increased from 3.60
percent to 3.90 percent over the first six months of the year. In June, the
yield curve pickup for extending maturities from 1 to 30 years was 200 basis
points.
Tax-exempt bonds outperformed U.S. Treasury securities during the first half
of 1996 as the risk faded that flat tax proposals would cause a radical
change in the tax code. The ratio of insured revenue bond yields to 30-year
U.S. Treasury yields, which began the year at 92 percent, declined to 85
percent by the end of June. A declining ratio means that municipal bond
prices were relatively stronger than U.S. Treasury prices.
The municipal market also benefited from steady demand. In addition to
regular maturities and calls for redemption this year, it has been estimated
that investors also face the retirement of $66 billion of previously refunded
debt. On the supply side, new issues increased 30 percent to $90 billion
during the first six months of 1996. However, as interest rates rose,
underwritings were frequently postponed and the pace of activity slowed.
PERFORMANCE
Select Municipal Reinvestment Fund's total return for the first half of 1996
was -1.41 percent. The Fund's net asset value declined $12.48 to $11.99 per
share. Tax-free dividends of $0.30 per share and taxable long-term capital
gains distributions of $0.01 per share were paid during
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
LETTER TO THE SHAREHOLDERS June 30, 1996, continued
the period. Since its inception on September 22, 1983, the Fund has provided
shareholders with an average annual total return of 8.64 percent. The
trailing 30-day SEC and distribution yields on June 30, 1996 were 4.68
percent and 5.05 percent, respectively.
(The charts below represent information which appears as a graphic in
the printed report)
A pie chart reflecting the Five Largest Sectors as of June 30, 1996 and
a pie chart reflecting the credit quality of the portfolio as rated by Moody's
or Standard & Poors Credit Ratings as of June 30, 1996.
SECTORS PERCENT
------- -------
Other 35%
Transportation 16%
General Obligation 16%
Water & Sewer 15%
Hospital 10%
Education 8%
CREDIT RATING PERCENT
------------- -------
Aaa or AAA 30%
Aa or AA 31%
A or A 28%
Baa or BBB 7%
Ba or BB 1%
Not rated 3%
PORTFOLIO STRUCTURE
The Fund's net assets of $92 million were diversified
among 11 long-term sectors and 49 credits. In response to
the changing interest rate environment, the Fund increased its cash and
short-term investment position from 4 percent to 6 percent of net assets during
the first half of the year. Portfolio sales shifted to more market sensitive
issues. Discount and current-coupon sales exceeded sales of defensive, higher
coupon bonds with shorter calls. The average maturity and call protection of
the long-term portfolio were 18 years and 7 years, respectively. The portfolio
has consistently maintained its high quality characteristic with 61 percent of
its long-term holdings rated double "A" or better.
LOOKING AHEAD
Future tax reduction proposals may renew investor concern. However, the
balance between the supply of new issues and demand created by maturities
should remain positive for the municipal market. Long-term insured municipal
securities currently yield 85 percent to the yield on U.S. Treasury securities
and may be expected to move in tandem with the Treasury market.
We appreciate your ongoing support of 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>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------- ------ -------- ---------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (93.4%)
General Obligation (16.0%)
$ 2,000 Chicago, Illinois, Refg Ser 1995 B (FGIC) ............................... 5.125% 01/01/25 $ 1,769,820
2,000 Washington Suburban Sanitation District, Maryland, General Construction
Refg 1994 .............................................................. 5.00 06/01/14 1,831,380
2,000 Massachusetts, 1994 Ser C (FGIC) ........................................ 6.75 11/01/12 2,164,040
3,000 New York City, New York, 1990 Ser D ..................................... 6.00 08/01/07 2,935,740
2,000 Pennsylvania, First Ser 1995 (FGIC) ..................................... 5.50 05/01/12 1,960,500
2,000 Shelby County, Tennessee, Refg 1995 Ser A ............................... 5.625 04/01/12 1,996,700
2,000 Washington, Ser 1995 A .................................................. 5.80 09/01/08 2,043,660
------- ----------
15,000 14,701,840
------- ----------
Educational Facilities Revenue (8.2%)
2,000 District of Columbia, Georgetown University Ser 1993 .................... 5.375 04/01/23 1,807,280
2,000 Massachusetts Health & Educational Facilities Authority, Boston College
Ser K .................................................................. 5.25 06/01/18 1,829,660
1,500 Rutgers - The State University, New Jersey, Refg Ser R ................... 6.50 05/01/13 1,579,725
2,000 New York State Dormitory Authority, State University Ser 1989 B ........ 0.00 05/15/03 1,356,760
1,000 Ohio Higher Educational Facility Commission, Oberlin College Ser 1993 .. 5.375 10/01/15 958,820
------- ----------
8,500 7,532,245
------- ----------
Electric Revenue (7.6%)
2,000 Gainesville, Florida, Utilities 1996 Ser A .............................. 5.20 10/01/22 1,826,480
2,000 Nebraska Public Power District, Power Supply 1993 Ser ................... 6.125 01/01/15 2,010,900
2,000 Intermountain Power Agency, Utah, Refg 1996 Ser D ....................... 5.00 07/01/21 1,726,240
3,000 Washington Public Power Supply System, Proj #2 Refg Ser 1994 A (FGIC) .. 0.00 07/01/09 1,388,640
------- ----------
9,000 6,952,260
------- ----------
Hospital Revenue (9.6%)
2,000 Birmingham - Carraway Special Care Facilities Financing Authority,
Alabama, Carraway Methodist Health Ser 1995 A (Connie Lee) ............ 6.25 08/15/09 2,091,120
2,000 Maryland Industrial Development Financing Authority, Holy Cross Health
System Corporation Refg Ser 1996 ....................................... 5.50 12/01/08 1,982,180
2,000 Clermont County, Ohio, Mercy Health Ser 1991 (AMBAC) .................... 6.733 10/05/21 2,116,780
2,500 North Central Texas Health Facilities Development Corporation,
University Medical Center Ser 1989 ..................................... 8.20 04/01/19 2,603,050
------- ----------
8,500 8,793,130
------- ----------
Industrial Development/Pollution Control Revenue (7.9%)
700 Connecticut Development Authority, Bridgeport Hydraulic Co Refg Ser 1990 7.25 06/01/20 749,889
1,000 Michigan Strategic Fund, Ford Motor Co Refg Ser 1991 A .................. 7.10 02/01/06 1,125,500
1,000 Claiborne County, Mississippi, Middle South Energy Inc Ser C ........... 9.875 12/01/14 1,117,880
2,000 Ohio Water Development Authority, Dayton Power & Light Co Collateralized
Refg 1992 Ser A ........................................................ 6.40 08/15/27 2,066,540
1,500 Matagorda County Navigation District #1, Texas, Central Power & Light Co
Collateralized Ser 1984 A .............................................. 7.50 12/15/14 1,655,040
500 Russell County Industrial Development Authority, Virginia, Appalachian
Power Co Ser G ......................................................... 7.70 11/01/07 544,755
------- ----------
6,700 7,259,604
------- ----------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1996 (unaudited) continued
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------- ------ -------- -----------
<S> <C> <C> <C> <C>
Mortgage Revenue - Multi-Family (1.5%)
$ 1,000 Michigan Housing Development Authority, Rental 1992 Ser A .............. 6.60 % 04/01/12 $ 1,031,940
340 Pennsylvania Housing Finance Agency, Moderate Rehabilitation - Section 8
Assisted Issue B ....................................................... 9.00 08/01/01 345,770
------- ----------
1,340 1,377,710
------- ----------
Mortgage Revenue - Single Family (3.0%)
2,000 Alaska Housing Finance Corporation, Governmental 1995 Ser A (MBIA) ..... 5.875 12/01/24 1,936,860
850 Maricopa County Industrial Development Authority, Arizona, Refg 1991
Ser A .................................................................. 7.50 08/01/12 888,785
------- ----------
2,850 2,825,645
------- ----------
Public Facilities Revenue (2.3%)
1,000 Hennepin County, Minnesota, Ser 1991 COPs ............................... 6.80 05/15/17 1,078,550
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1988 A . 7.90 07/01/07 1,083,890
------- ----------
2,000 2,162,440
------- ----------
Transportation Facilities Revenue (15.7%)
2,000 Los Angeles County Transportation Commission, California, Sales Tax Ser
1991 B ................................................................. 6.50 07/01/13 2,082,000
2,000 Lee County, Florida, Ser 1995 (MBIA) .................................... 5.75 10/01/22 1,981,080
3,500 Kentucky Turnpike Authority, Resource Recovery Road 1987 Ser A BIGS .... 0.00+ 07/01/06 3,911,075
2,000 Ohio Turnpike Commission, 1994 Ser A .................................... 5.75 02/15/24 1,951,200
2,000 Puerto Rico Highway & Transportation Authority, Refg Ser X ............. 5.25 07/01/21 1,802,220
3,000 Texas Turnpike Authority, Dallas North Tollway Refg Ser 1997 (FGIC) .... 5.25 01/01/23 2,747,730
------- ----------
14,500 14,475,305
------- ----------
Water & Sewer Revenue (15.0%)
2,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien Water Ser 1994 . 5.45 07/01/19 1,868,420
2,000 Chicago, Illinois, Wastewater Ser 1995 (FGIC) ........................... 5.125 01/01/25 1,767,340
2,000 Boston Water & Sewer Commission, Massachusetts, 1992 Ser A ............. 6.00 11/01/15 2,000,560
1,500 Massachusetts Water Resource Authority, 1993 Ser C ...................... 5.25 12/01/08 1,454,685
2,000 Suffolk County Industrial Development Agency, New York, Southwest Sewer
Ser 1994 (FGIC) ........................................................ 4.75 02/01/09 1,817,420
1,000 Columbus, Ohio, Sewerage Refg Ser 1992 .................................. 6.25 06/01/08 1,049,570
Spartanburg, South Carolina,
1,000 Water Improvement Refg Ser A 1992 ...................................... 6.25 06/01/12 1,030,130
1,000 Water Improvement Refg Ser A 1992 ...................................... 6.25 06/01/17 1,024,390
2,000 Metropolitan Government of Nashville & Davidson County, Tennessee,
Refg of 1986 ........................................................... 5.50 01/01/16 1,928,180
------- ----------
14,500 13,940,695
------- ----------
Other Revenue (1.8%)
1,500 New York Local Government Assistance Corporation, Ser 1991 D ........... 7.00 04/01/11 1,660,575
------- ----------
Refunded (4.8%)
2,000 Maryland Water Quality Financing Administration, 1990 Ser A ............ 7.25 09/01/00++ 2,223,260
2,000 Saint Cloud, Minnesota, The Saint Cloud Hospital Ser 1990 B (AMBAC) .... 7.00 07/01/01++ 2,228,200
------- ----------
4,000 4,451,460
------- ----------
88,390 TOTAL MUNICIPAL BONDS (Identified Cost $83,127,507) ........................................... 86,132,909
------- ----------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS June 30, 1996 (unaudited) continued
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------- ------- --------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATION (2.1%)
$ 1,900 University of Michigan, Hospital Ser 1992 A (Demand 07/01/96)
------- (Identified Cost $1,900,000) ........................................... 3.55*% 12/01/19 $ 1,900,000
----------
$90,290 TOTAL INVESTMENTS (Identified Cost $85,027,507) (a) ............................... 95.5% 88,032,909
======= CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 4.5 4,133,048
------ -----------
NET ASSETS ........................................................................ 100.0% $92,165,957
====== ===========
</TABLE>
- ------------
BIGS Bond Income Growth Security.
COPs Certificates of Participation.
+ Zero coupon; will convert to 8.50% on July 1, 1997.
++ Prerefunded to call date shown.
* Current coupon of variable rate security.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation was
$4,332,273 and the aggregate gross unrealized depreciation was
$1,326,871, resulting in net unrealized appreciation of
$3,005,402.
Bond Insurance:
- -------------
AMBAC AMBAC Indemnity Corporation.
Connie Lee Connie Lee Insurance Company.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
GEOGRAPHIC SUMMARY OF INVESTMENTS
Based on Market Value as a Percent of Net Assets
June 30, 1996
<TABLE>
<CAPTION>
<S> <C>
Alabama 2.3%
Alaska 2.1
Arizona 3.0
California 2.3
Connecticut 0.8
District of Columbia 2.0
Florida 4.1
Illinois 3.8
Kentucky 4.2
Maryland 6.6
Massachusetts 8.1
Michigan 4.4
Minnesota 3.6
Mississippi 1.2
Nebraska 2.2
New York 8.4
New Jersey 1.7
Ohio 8.8
Pennsylvania 2.5
Puerto Rico 3.1
South Carolina 2.2
Tennessee 4.3
Texas 7.6
Utah 1.9
Virginia 0.6
Washington 3.7
----
Total 95.5%
====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $85,027,507) ............. $88,032,909
Cash ....................................... 367,755
Receivable for:
Investments sold ......................... 2,441,550
Interest ................................. 1,502,694
Prepaid expenses and other assets .......... 53,060
-----------
TOTAL ASSETS ............................. 92,397,968
-----------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased ............................. 117,979
Investment management fee ................ 37,456
Dividends to shareholders ................ 23,155
Accrued expenses ........................... 53,421
----------
TOTAL LIABILITIES ........................ 232,011
----------
NET ASSETS:
Paid-in-capital ............................ 87,933,807
Net unrealized appreciation ................ 3,005,402
Accumulated undistributed net investment
income .................................... 25,730
Accumulated undistributed net realized gain 1,201,018
-----------
NET ASSETS ............................... $92,165,957
===========
NET ASSET VALUE PER SHARE
7,686,363 shares outstanding (unlimited
shares authorized of $.01 par value) ..... $ 11.99
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ...................... $ 2,777,261
-----------
EXPENSES
Investment management fee ............ 232,056
Transfer agent fees and expenses .... 130,147
Shareholder reports and notices ..... 26,546
Professional fees .................... 23,834
Registration fees .................... 14,761
Trustees' fees and expenses .......... 8,571
Custodian fees ....................... 3,222
Other ................................ 5,376
-----------
TOTAL EXPENSES BEFORE EXPENSE
OFFSET ............................ 444,513
LESS: EXPENSE OFFSET .............. (3,203)
-----------
TOTAL EXPENSES AFTER EXPENSE
OFFSET ............................ 441,310
-----------
NET INVESTMENT INCOME .............. 2,335,951
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain .................... 1,201,015
Net change in unrealized appreciation (4,924,918)
-----------
NET LOSS ........................... (3,723,903)
-----------
NET DECREASE ......................... $(1,387,952)
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ............................. $ 2,335,951 $ 4,697,296
Net realized gain ................................. 1,201,015 179,336
Net change in unrealized appreciation ............. (4,924,918) 8,626,901
----------- -----------
NET INCREASE (DECREASE) ......................... (1,387,952) 13,503,533
----------- -----------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ............................. (2,336,208) (4,694,507)
Net realized gain ................................. (98,283) (134,761)
----------- -----------
TOTAL ........................................... (2,434,491) (4,829,268)
----------- -----------
Net increase from transactions in shares of
beneficial interest .............................. 757,729 151,008
----------- -----------
TOTAL INCREASE (DECREASE) ....................... (3,064,714) 8,825,273
NET ASSETS:
Beginning of period ............................... 95,230,671 86,405,398
----------- -----------
END OF PERIOD
(Including undistributed net investment income
of $25,730 and $25,987, respectively) .......... $92,165,957 $95,230,671
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (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's investment objective is to
provide a high level of current income which is exempt from federal income
tax, consistent with the preservation of capital. The Fund was organized as a
Massachusetts business trust on June 1, 1983 and commenced operations on
September 22, 1983.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates. 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 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. Short-term debt securities having a maturity date of more than
sixty days at time of purchase are valued on a mark-to-market basis until
sixty days prior to maturity and thereafter at amortized cost based on their
value on the 61st day. Short-term debt securities having a maturity date of
sixty days or less at the time of purchase are valued at amortized cost.
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. Discounts are accreted and premiums are amortized over the life of
the respective securities. Interest income is accrued daily.
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
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (unaudited) continued
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
reclassification. 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. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with Dean Witter InterCapital
Inc. (the "Investment Manager"), the Fund pays the Investment Manager a
management fee, accrued daily and payable monthly, by applying the annual
rate of 0.50% to the daily net assets of the Fund determined as of the close
of each business day.
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, 1996
aggregated $8,204,753 and $10,943,788, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At June 30, 1996, the Fund had transfer agent fees and
expenses payable of approximately $31,000.
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (unaudited) continued
4. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------------------- ------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Sold ...................................... 1,512,780 $ 18,407,617 2,857,613 $ 34,313,758
Reinvestment of dividends and distributions 188,338 2,284,391 379,503 4,576,988
---------- ------------ ---------- ------------
1,701,118 20,692,008 3,237,116 38,890,746
Repurchased ............................... (1,643,996) (19,934,279) (3,227,249) (38,739,738)
---------- ------------ ---------- ------------
Net increase .............................. 57,122 $ 757,729 9,867 $ 151,008
========== ============ ========== ============
</TABLE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL HIGHLIGHTS
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, 1996 1995 1994 1993 1992 1991
---------------- ------ ------- ------ ------ ------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .. $ 12.48 $11.34 $12.82 $12.12 $11.89 $11.25
--------- ------ ------ ------ ------ ------
Net investment income .................. 0.30 0.62 0.65 0.67 0.70 0.71
Net realized and unrealized gain (loss) (0.48) 1.16 (1.40) 0.75 0.32 0.62
--------- ------ ------ ------ ------ ------
Total from investment operations ...... (0.18) 1.78 (0.75) 1.42 1.02 1.33
--------- ------ ------ ------ ------ ------
Less dividends and distributions from:
Net investment income ................. (0.30) (0.62) (0.69) (0.67) (0.70) (0.69)
Net realized gain ..................... (0.01) (0.02) (0.04) (0.05) (0.09) --
--------- ------ ------ ------ ------ ------
Total dividends and distributions ..... (0.31) (0.64) (0.73) (0.72) (0.79) (0.69)
--------- ------ ------ ------ ------ ------
Net asset value, end of period ......... $ 11.99 $12.48 $11.34 $12.82 $12.12 $11.89
========= ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN+ .............. (1.41)%(1) 16.00% (5.98)% 11.99% 8.88% 12.04%
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................... 0.96%(2)(3) 0.97% 0.96% 1.02% 1.14% 1.20%
Net investment income .................. 5.03%(2) 5.14% 5.34% 5.25% 5.79% 6.06%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands $92,166 $95,231 $86,405 $96,265 $75,918 $67,903
Portfolio turnover rate ................ 9%(1) 17% 18% 9% 13% 30%
</TABLE>
- ------------
+ Calculated based on the net asset value as of the last business day of
the period.
(1) Not annualized.
(2) Annualized.
(3) The above expense ratio was 0.95% after expense offset, which reflects
0.01% effect for custody cash credits.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
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
James F. Willison
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 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, 1996
