<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
We are pleased to present the annual report on the operations of Dean Witter
U.S. Government Securities Trust for the fiscal year ended December 31, 1993.
PERFORMANCE
For the 12-month period ended December 31, 1993, the Fund produced a total
return of 7.13 percent (not including the maximum applicable contingent deferred
sales charge; see the chart for
further details). Over the last year, the
Fund's net asset value has been relatively
stable, with a high of $9.54 and a low of
$9.29. As of December 31, the Fund's net
asset value was $9.31 per share. The
general decline in interest rates during
1993 brought with it a decline in the
Fund's dividend. Nevertheless, the current
30-day SEC yield and distribution rate as
of December 31, 1993, 4.98 percent and
6.28 percent, respectively, illustrate the
Fund's value as an alternative to other
fixed-income investments. In light of our
outlook for the economy and interest rates
in 1994, we believe the total dividends
per share paid to shareholders in the new
year to be less than the $0.64 per share
paid in 1993.
PORTFOLIO STRATEGY
On December 31, 1993, Government
National Mortgage Association securities
(GNMAs) made up 51 percent of the
portfolio, while short-and
intermediate-term U.S. Treasury securities
comprised 36 percent. The remaining 13
percent was invested in U.S. Treasury and
Refcorp strips. As interest rates declined
to historical lows, the modest increase in
the GNMA component of the portfolio during
the year was made to improve the Trust's
total return prospects, maintain a high
level of income and to reduce the Fund's
reliance on high-coupon, short-term U.S.
Treasury securities. The accompanying
chart illustrates the performance of a
$10,000 investment in the Fund from
inception (June 29, 1984) through the
fiscal year ended December 31, 1993, versus the performance of a similar
investment in the Lehman Brothers Mutual Fund General U.S. Government Index.
The economic landscape in the United States in 1993 proved to be a
considerable challenge. Early in the year, the consensus view was for the
economy to pick up steam as interest rates reached lows not seen in more than 20
years. However, as the year progressed the forecast changed to tepid growth for
the balance of 1993, despite a continued decline in interest rates. Then, in
October, interest
<PAGE>
rates began to rise as signs of renewed vigor in the economy became apparent. At
this time, consumer spending increased as mortgage refinancing generated
increased disposable income.
LOOKING AHEAD
Our expectation is for the economy to slow relative to the pace of 1993's
fourth quarter, as the 1993 tax hike begins to take its toll. The general
concern over President Clinton's health care plan and its potential effect on
U.S. industry, coupled with the public's general dissatisfaction with the pace
of Congress' spending reduction plans should also contribute to this scenario.
Inflation, however, should remain subdued at approximately three percent,
enabling the Fund to continue to provide an attractive income stream and total
return.
We appreciate your support of Dean Witter U.S. Government Securities Trust
and look forward to continuing to serve your investment needs.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT COUPON MATURITY
(IN THOUSANDS) RATE DATES VALUE
---------------- ------ ------------------- --------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (43.9%)
U.S. TREASURY STRIPS (7.7%)
$ 75,000 0.00% 2/15/96 $ 68,474,235
40,000 0.00 8/15/98 31,531,972
123,000 0.00 2/15/04 66,480,873
380,000 0.00 5/15/04 201,504,272
385,000 0.00 8/15/04 200,412,135
95,000 0.00 11/15/04 48,550,881
459,000 0.00 2/15/05 229,712,976
96,000 0.00 5/15/05 47,204,870
93,000 0.00 2/15/06 43,275,299
--------------
937,147,513
--------------
U.S. TREASURY NOTES (36.0%)
64,500 4.375 11/15/96 64,237,969
68,000 4.750 9/30/98 66,873,750
50,000 4.750 10/31/98 49,101,563
99,500 5.125 11/30/98 99,142,422
104,000 5.875 5/15/95 106,583,750
60,000 6.875 3/31/97 63,946,875
249,000 6.875 4/30/97 265,418,438
307,500 7.000 4/15/99 331,571,484
250,000 8.000 7/15/94 255,976,563
9,000 8.000 10/15/96 9,805,781
200,000 8.250 11/15/94 207,718,750
390,000 8.500 3/31/94 394,814,062
400,000 8.500 6/30/94 409,937,500
195,000 8.500 9/30/94 202,007,813
258,500 8.500 11/15/95 278,331,797
352,500 8.625 8/15/94 363,515,625
184,000 8.625 10/15/95 198,030,000
373,500 8.875 2/15/94 375,892,734
229,000 8.875 7/15/95 245,387,812
193,500 8.875 2/15/96 211,187,109
47,000 9.250 1/15/96 51,523,750
150,000 9.500 5/15/94 153,375,000
--------------
4,404,380,547
--------------
U.S. TREASURY BILLS (A) (0.2%)
11,000 2.720 1/20/94 10,984,209
16,000 2.810 1/20/94 15,976,271
--------------
26,960,480
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $5,206,866,902) .................................... 5,368,488,540
--------------
U.S. GOVERNMENT AGENCIES (56.6%)
RESOLUTION FUNDING CORP.
ZERO COUPON STRIPS (5.5%)
19,000 0.00 1/15/02 11,922,878
21,150 0.00 4/15/02 13,061,838
61,500 0.00 7/15/02 37,242,290
</TABLE>
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1993 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT COUPON MATURITY
(IN THOUSANDS) RATE DATES VALUE
---------------- ------ ------------------- --------------
<S> <C> <C> <C> <C>
$ 57,049 0.00% 10/15/02 $ 33,960,939
71,000 0.00 1/15/03 41,277,341
109,000 0.00 4/15/03 62,266,152
71,000 0.00 7/15/03 39,798,851
136,100 0.00 10/15/03 75,152,555
149,882 0.00 1/15/04 80,794,312
104,419 0.00 4/15/04 55,325,300
85,000 0.00 7/15/04 44,114,303
71,340 0.00 10/15/04 36,344,413
118,211 0.00 1/15/05 59,027,445
75,237 0.00 4/15/05 36,947,582
98,000 0.00 7/15/05 47,208,580
--------------
674,444,779
--------------
MORTGAGE PASS-THROUGH CERTIFICATES (51.1%)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (50.8%)
343,881 6.500 10/15/22 - 12/15/23 340,656,874
50,000 6.500 * 49,531,250
50,000 6.500 * 49,390,625
1,115,491 7.000 4/15/17 - 12/15/23 1,133,269,171
50,000 7.000 * 50,312,500
1,666,757 7.500 9/15/16 - 5/15/23 1,728,738,993
547,303 8.000 10/15/16 - 2/15/23 576,207,864
560,646 8.500 7/15/06 - 8/15/22 594,634,649
581,784 9.000 10/15/08 - 8/15/21 622,326,669
463,127 9.500 10/15/09 - 12/15/20 500,755,863
520,485 10.000 11/15/09 - 11/15/20 573,672,327
1,683 12.500 4/15/10 - 6/15/15 1,952,454
--------------
6,221,449,239
--------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION GRADUATED PAYMENT
MORTGAGE I (0.3%)
27,796 12.250 6/15/13 - 10/15/15 32,156,998
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL U.S. GOVERNMENT AGENCIES
(IDENTIFIED COST $6,516,554,118).......................... 6,928,051,016
---------------
TOTAL INVESTMENTS (IDENTIFIED COST $11,723,421,020)(B)...... 100.5 % 12,296,539,556
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.............. (0.5 ) (61,511,083)
------ ---------------
NET ASSETS.................................................. 100.0 % $12,235,028,473
------ ---------------
------ ---------------
<FN>
- ------------------------
* SECURITIES PURCHASED ON A FORWARD COMMITMENT WITH AN APPROXIMATE PRINCIPAL
AMOUNT AND NO DEFINITE MATURITY DATE, THE ACTUAL PRINCIPAL AMOUNT AND
MATURITY DATE WILL BE DETERMINED UPON SETTLEMENT.
(A) U.S. TREASURY BILLS WERE PURCHASED ON A DISCOUNT BASIS. THE RATE SHOWN
REFLECTS A BOND EQUIVALENT INTEREST RATE.
(B) THE AGGREGATE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS
$11,723,421,020; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $635,337,206
AND THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $62,218,670, RESULTING IN
NET UNREALIZED APPRECIATION OF $573,118,536.
</TABLE>
See Notes to Financial Statements
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1993
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $11,723,421,020)
(Note 1)............................. $12,296,539,556
Cash................................... 3,536,145
Receivables for:
Interest............................. 125,312,304
Investments sold..................... 50,608,681
Shares of beneficial interest sold... 16,725,115
Prepaid expenses....................... 334,046
---------------
TOTAL ASSETS..................... 12,493,055,847
---------------
LIABILITIES:
Payables for:
Investments purchased................ 203,023,317
Dividends to shareholders............ 35,457,348
Shares of beneficial interest
repurchased......................... 6,826,518
Investment management fee payable (Note
2)................................... 4,014,420
Plan of distribution fee payable (Note
3)................................... 7,625,416
Accrued expenses (Note 4).............. 1,080,355
---------------
TOTAL LIABILITIES................ 258,027,374
---------------
NET ASSETS:
Paid in capital........................ 13,464,798,009
Accumulated realized loss on
investments--net..................... (1,802,920,648)
Unrealized appreciation of
investments--net..................... 573,118,536
Accumulated undistributed investment
income--net.......................... 32,576
---------------
NET ASSETS....................... $12,235,028,473
---------------
---------------
NET ASSET VALUE PER SHARE,
1,313,949,069 shares outstanding
(unlimited shares authorized of $.01
par value)........................... $9.31
---------------
---------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<S> <C>
INVESTMENT INCOME:
INTEREST INCOME....................... $1,002,781,220
--------------
EXPENSES
Plan of distribution fee (Note 3).... 91,852,480
Investment management fee (Note
2)................................. 48,270,568
Transfer agent fees and expenses
(Note 4)........................... 6,540,758
Custodian fees...................... 1,115,053
Registration fees................... 344,693
Shareholder reports and notices..... 279,188
Professional fees................... 125,964
Trustees' fees and expenses (Note
4)................................. 35,798
Other............................... 143,137
--------------
TOTAL EXPENSES.................... 148,707,639
--------------
INVESTMENT INCOME--NET.......... 854,073,581
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS--NET (NOTE 1):
Realized loss on investments--net..... (261,427,859)
Change in unrealized appreciation on
investments--net..................... 284,089,311
--------------
NET GAIN ON INVESTMENTS........ 22,661,452
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 876,735,033
--------------
--------------
</TABLE>
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 1993 DECEMBER 31, 1992
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income--net......................................... $ 854,073,581 $ 965,771,516
Realized loss on investments--net.............................. (261,427,859) (170,417,125)
Change in unrealized appreciation on investments--net.......... 284,089,311 (106,562,822)
------------------- -------------------
Net increase in net assets resulting from operations......... 876,735,033 688,791,569
Dividends to shareholders from investment income--net............ (854,048,343) (965,759,453)
Transactions in shares of beneficial interest-net (decrease)
increase (Note 6)............................................... (271,700,686) 1,025,260,754
------------------- -------------------
Total (decrease) increase.................................. (249,013,996) 748,292,870
NET ASSETS:
Beginning of period.............................................. 12,484,042,469 11,735,749,599
------------------- -------------------
END OF PERIOD (including undistributed net investment income of
$32,576 and $12,063, respectively).............................. $ 12,235,028,473 $ 12,484,042,469
------------------- -------------------
------------------- -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter U.S. Government Securities
Trust (the "Fund") was organized on September 29, 1983 as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a diversified, open-end management investment company.
The Fund commenced operations on June 29, 1984.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS--(1) all portfolio securities for which
over-the-counter market quotations are readily available are valued at the
bid price; (2) when market quotations are not readily available, portfolio
securities are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Trustees
(valuation of securities for which market quotations are not readily
available may be based upon current market prices of securities which are
comparable in coupon, rating and maturity or an appropriate matrix utilizing
similar factors); and (3) short-term instruments having a maturity date of
more than 60 days are valued on a "mark-to-market" basis, that is, at prices
based on market quotations for securities of similar type, yield, quality
and maturity, until 60 days prior to maturity and thereafter at amortized
value. Short-term instruments having a maturity date of 60 days or less at
the time of purchase are valued at amortized cost unless the Trustees
determine this does not represent fair market value.
B. ACCOUNTING FOR INVESTMENTS--Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing net
investment income, the Fund does not amortize premiums or accrue discounts
on fixed income securities in the portfolio, except those original issue
discounts for which amortization is required for federal income tax
purposes. Additionally, with respect to market discount, a portion of any
capital gain realized upon disposition is recharacterized as investment
income. Realized gains and losses on security transactions are determined on
the identified cost method. 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 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. INVESTMENT MANAGEMENT AGREEMENT--Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, calculated and
accrued daily and payable monthly, by applying the following annual rates to the
Fund's daily net assets: 0.50% of the portion of such daily net assets not
exceeding $1 billion; 0.475% of the portion of such daily net assets exceeding
$1 billion
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
but not exceeding $1.5 billion; 0.45% of the portion of such daily net assets
exceeding $1.5 billion but not exceeding $2 billion; 0.425% of the portion of
such daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.40%
of the portion of such daily net assets exceeding $2.5 billion but not exceeding
$5 billion; 0.375% of the portion of such daily net assets exceeding $5 billion
but not exceeding $7.5 billion; 0.35% of the portion of such daily net assets
exceeding $7.5 billion but not exceeding $10 billion; 0.325% of the portion of
such daily net assets exceeding $10 billion but not exceeding $12.5 billion and
0.30% of the portion of such daily net assets exceeding $12.5 billion.
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 office space and 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. PLAN OF DISTRIBUTION--Shares of beneficial interest of the Fund are
distributed by Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager. To compensate the Distributor, the Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act pursuant
to which the Fund pays the Distributor compensation accrued daily and payable
monthly at the annual rate of 0.75% (0.65% on amounts over $10 billion) of the
lesser of: (a) the average daily aggregate gross sales of the Fund's shares
since the inception of the Fund (not including reinvestments of dividends or
capital gains distributions), less the average daily aggregate net asset value
of the Fund's shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or upon which such charge has been
waived, or (b) the Fund's average daily net assets. Amounts paid under the Plan
are paid to the Distributor to compensate it for the services it provides and
the expenses it bears in the distribution of the Fund's shares, including the
payment of commissions for sales of the Fund's shares and incentive compensation
to and expenses of the account executives of Dean Witter Reynolds Inc., an
affiliate of the Investment Manager, and other employees or selected dealers who
engage in or support distribution of the Fund's shares or who service
shareholder accounts, including overhead and telephone expenses, printing and
distribution of prospectuses and reports used in connection with the offering of
the Fund's shares to other than current shareholders, preparation, printing and
distribution of sales literature and advertising materials and its opportunity
costs in advancing such amounts, which compensation would be in the form of a
carrying charge on any unrecovered expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred
by the Distributor, but not yet recovered, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.
For the year ended December 31, 1993, the Distributor has informed the Fund
that it received approximately $12,629,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares of beneficial interest. The Fund's
shareholders pay such charges which are not expenses of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and the proceeds from sales/prepayments of portfolio securities, for
the year ended December 31, 1993, excluding short-term investments, aggregated
$3,633,364,757 and $6,080,408,869, respectively.
On April 1, 1991 the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Fund who will have
served as independent Trustees for at
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 year ended December 31, 1993, included in
Trustees' fees and expenses in the Statement of Operations amounted to $12,228.
At December 31, 1993 the Fund had an accrued pension liability of $39,296 which
is included in accrued expenses in the Statement of Assets and Liabilities.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. During the year ended December 31,
1993, the Fund incurred transfer agent fees and expenses of $6,540,758, of which
$682,569 was payable at December 31, 1993.
5. FEDERAL INCOME TAX STATUS--At December 31, 1993, the Fund had net capital
loss carryovers of approximately $1,761,704,000 of which $196,403,000 will be
available through December 31, 1994, $228,402,000 will be available through
December 31, 1995, $277,199,000 will be available through December 31, 1996,
$270,987,000 will be available through December 31, 1997, $108,731,000 will be
available through December 31, 1998, $261,526,000 will be available through
December 31, 1999, $154,964,000 will be available through December 31, 2000 and
$263,492,000 will be available through December 31, 2001 to offset future
capital gains to the extent provided by regulations. To the extent that these
capital loss carryovers are used to offset future capital gains, it is probable
that the gains so offset will not be distributed to shareholders. Any net
capital loss incurred after October 31 ("post-October losses") within the
taxable year is deemed to arise on the first day of the Fund's next taxable
year. The Fund incurred and elected to defer a net capital loss of approximately
$41,217,000 during fiscal 1993.
The Fund had temporary book/tax differences primarily attributable to
post-October losses and permanent book/tax differences primarily attributable to
expired capital loss carryovers. To reflect reclassifications arising from
permanent book/tax differences for the year ended December 31, 1993, accumulated
net realized loss on investments was credited and paid-in-capital was charged
for approximately $41,479,000.
6. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1993 DECEMBER 31, 1992
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- ------------- ----------------
<S> <C> <C> <C> <C>
Sold.............................................. 168,705,889 $ 1,589,631,602 264,623,715 $ 2,474,281,926
Reinvestment of dividends......................... 47,121,366 443,588,963 53,289,700 497,306,605
------------- --------------- ------------- ----------------
215,827,255 2,033,220,565 317,913,415 2,971,588,531
Repurchased....................................... (244,727,357) (2,304,921,251) (208,391,811) (1,946,327,777)
------------- --------------- ------------- ----------------
Net (decrease) increase........................... (28,900,102) $ (271,700,686) 109,521,604 $ 1,025,260,754
------------- --------------- ------------- ----------------
------------- --------------- ------------- ----------------
</TABLE>
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data and ratios for a share of beneficial interest outstanding
throughout each period:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------------
1993 1992 1991 1990 1989 1988 1987
-------- -------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period....... $ 9.30 $ 9.52 $ 9.37 $ 9.51 $ 9.42 $ 9.75 $ 10.33
-------- -------- -------- -------- -------- ---------- ----------
Investment income--net................... .64 .74 .87 .90 .91 .97 .96
Realized and unrealized gain (loss) on
investments--net........................ .01 (.22) .15 (.14) .09 (.33) (.58)
-------- -------- -------- -------- -------- ---------- ----------
Total from investment operations........... .65 .52 1.02 .76 1.00 .64 .38
-------- -------- -------- -------- -------- ---------- ----------
Less dividends and distributions:
Dividends from net investment income..... (.64) (.74) (.87) (.90) (.91) (.97) (.96)
Distributions from net realized gains on
investments............................. -0- -0- -0- -0- -0- -0- -0-
-------- -------- -------- -------- -------- ---------- ----------
Total dividends and distributions.......... (.64) (.74) (.87) (.90) (.91) (.97) (.96)
-------- -------- -------- -------- -------- ---------- ----------
Net asset value, end of period............. $ 9.31 $ 9.30 $ 9.52 $ 9.37 $ 9.51 $ 9.42 $ 9.75
-------- -------- -------- -------- -------- ---------- ----------
-------- -------- -------- -------- -------- ---------- ----------
TOTAL INVESTMENT RETURN+..................... 7.13% 5.76% 11.43% 8.49% 11.10% 6.74% 3.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions).... $12,235 $12,484 $11,736 $9,829 $10,167 $10,366 $10,418
Ratio of expenses to average net assets.... 1.18% 1.20% 1.17% 1.23% 1.19% 1.21% 1.18%
Ratio of net investment income to average
net assets................................ 6.78% 7.91% 9.23% 9.60% 9.62% 10.01% 9.63%
Portfolio turnover rate.................... 32% 40% 104% 54% 44% 15% 51%
<CAPTION>
FOR THE PERIOD
JUNE 29, 1984*
THROUGH
DECEMBER 31,
1986 1985 1984
---------- ---------- --------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period....... $ 10.53 $ 10.47 $ 10.00
---------- ---------- --------------
Investment income--net................... 1.02 1.24 .59
Realized and unrealized gain (loss) on
investments--net........................ (.20) .13 .47
---------- ---------- --------------
Total from investment operations........... .82 1.37 1.06
---------- ---------- --------------
Less dividends and distributions:
Dividends from net investment income..... (1.02) (1.24) (.59)
Distributions from net realized gains on
investments............................. -0- (.07) -0-
---------- ---------- --------------
Total dividends and distributions.......... (1.02) (1.31) (.59)
---------- ---------- --------------
Net asset value, end of period............. $ 10.33 $ 10.53 $ 10.47
---------- ---------- --------------
---------- ---------- --------------
TOTAL INVESTMENT RETURN+..................... 8.23% 14.00% 10.85%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions).... $11,100 $7,511 $968
Ratio of expenses to average net assets.... 1.20% 1.30% 1.43%(2)
Ratio of net investment income to average
net assets................................ 9.72% 11.53% 11.79%(2)
Portfolio turnover rate.................... 93% 98% N/A(3)
<FN>
- ---------------
* COMMENCEMENT OF OPERATIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) PORTFOLIO TURNOVER RATES WERE NOT REQUIRED ON U.S. GOVERNMENT SECURITIES PRIOR TO 1985.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter U.S. Government Securities Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter U.S. Government
Securities Trust (the "Fund") at December 31, 1993, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the nine years in the period then ended and for the period June 29, 1984
(commencement of operations) through December 31, 1984, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at December 31, 1993 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE
New York, New York
January 31, 1994
<PAGE>
TRUSTEES
- ---------------------------------------
Jack F. Bennett Dean Witter
Charles A. Fiumefreddo U.S. Government
Edwin J. Garn Securities
John R. Haire Trust
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Albert T. Sommers
Edward R. Telling
OFFICERS
- -------------------------------------------------
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
Rajesh K. Gupta
VICE PRESIDENT
Thomas F. Caloia
TREASURER
TRANSFER AGENT
- ---------------------------------------
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
- ---------------------------------------
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
- ---------------------------------------
Price Waterhouse
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
- ---------------------------------------
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
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.
Annual Report
December 31, 1993
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
GROWTH OF $10,000
($ IN THOUSANDS)
<TABLE>
<CAPTION>
DATE TOTAL LEHMAN U.S. GOVT.
INDEX
- ---------------------------------------------------------------
- ---------------------------------------------------------------
<S> <C> <C>
June 30, 1984 $10,000 $10,000
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1984 $11,085 $11,517
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1985 $12,637 $13,870
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1986 $13,677 $15,995
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1987 $14,214 $16,347
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1988 $15,172 $17,496
- ---------------------------------------------------------------
- ---------------------------------------------------------------
December 31, 1989 $16,855 $19,986
- ---------------------------------------------------------------
December 31, 1990 $18,287 $21,728
- ---------------------------------------------------------------
December 31, 1991 $20,377 $25,057
- ---------------------------------------------------------------
December 31, 1992 $21,550 $26,869
- ---------------------------------------------------------------
December 31, 1993 $23,087(3) $29,733
- ---------------------------------------------------------------
- ---------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
- ------------------------------------------------------------
- ------------------------------------------------------------
<S> <C> <C> <C>
Non-Standard 7.13(1) 8.76(1) 9.20(1)
- ------------------------------------------------------------
Standard (-CDSC) 2.13(2) 8.48(2) 9.20(2)
- ------------------------------------------------------------
- ------------------------------------------------------------
<CAPTION>
-----------------------------------
-----------------------------------
<S> <C>
Fund Lehman (4)
------- -------
-----------------------------------
-----------------------------------
Past performance is not predictive of future returns.
<FN>
_______________________________________
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%,
5 years-2%, since inception-0%). See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value, assuming a complete redemption on December 31, 1993.
(4) The Lehman Brothers Mutual Fund General U.S. Government Index is a broad-
based, unmanaged measure of all U.S. Government Securities. The Index does
not include any expenses, fees or charges.
</TABLE>
