<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
Two World Trade Center,
New York, New York 10048
LETTER TO THE SHAREHOLDERS June 30, 1996
DEAR SHAREHOLDER:
During the six-months ended June 30, 1996, interest rates on
intermediate-term U.S. Treasury securities rose sharply, retracing all of the
decline of the preceding six months. Early in 1996, the market's perception
of the U.S. economy had changed from one of weakness to that of strong
growth. The combined effect of the government shut-down and the severe winter
weather created pent-up demand by the consumer sector. Reinvigorated by low
mortgage rates, rebate-incentives by the auto dealers and extraordinary
"sale" prices at local retailers, retail sales and housing starts soared.
This wholesale inventory liquidation, combined with strong employment data,
caused considerable consternation about a quickly rebounding economy, and
possibly an inflation surge. On June 30, 1996, the five-year U.S. Treasury
note was yielding 6.46 percent compared to 5.38 percent six months ago.
PERFORMANCE AND PORTFOLIO STRUCTURE
On June 30, 1996, Dean Witter U.S. Government Securities Trust had net assets
totaling nearly $7.0 billion. The Fund's total return for the six month
period ended June 30, 1996 was -1.55 percent. This performance included
income distributions totaling approximately $0.28 per share and a change in
net asset value from $9.21 per share on December 31, 1995, to $8.80 per share
on June 30, 1996.
The Fund's performance during the period under review was reflective of the
higher interest rate environment. As of June 30, 1996, approximately 80
percent of the Fund's portfolio was comprised of Government National Mortgage
Association mortgage-backed securities (GNMAs), 15 percent in U.S. Treasury
securities and 5 percent in U.S. government agency Resolution Funding
Corporation securities (REFCORP). The Fund's duration was approximately 5.7
years on June 30, 1996.
We believe that GNMAs continue to offer significant long-term value and, in
the current investment environment, offer not only an incremental yield
incentive over U.S. Treasury securities of similar maturity but also the
potential for attractive total returns.
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
LETTER TO THE SHAREHOLDERS June 30, 1996, continued
LOOKING AHEAD
For the balance of 1996, we expect U.S. economic growth to moderate from the
rapid pace of the second quarter. We believe the Federal Reserve Board will
want to see a sustained confirmation of strong economic trends and rising
inflation before taking overt action to slow the economy. Inflation should
remain subdued in the months ahead albeit at a slightly higher level than
1995.
We appreciate your ongoing support of Dean Witter U.S. Government Securities
Trust and look forward to continuing to serve your investment objectives.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
Chairman of the Board
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON
THOUSANDS DESCRIPTION AND MATURITY DATE RATE VALUE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED SECURITIES (80.0%)
Government National Mortgage Assoc. I (79.2%)
$362,350 10/15/22-02/15/24 .............................................. 6.50 % $ 337,325,477
2,289,192 04/15/17-04/15/26 .............................................. 7.00 2,195,478,410
1,343,764 11/15/02-06/15/26 .............................................. 7.50 1,324,446,857
395,083 10/15/16-07/15/26 .............................................. 8.00 398,539,579
25,000 (a) ............................................................ 8.00 25,218,750
420,429 07/15/06-04/15/25 .............................................. 8.50 432,253,564
308,454 10/15/08-08/15/21 .............................................. 9.00 322,816,033
221,868 10/15/09-12/15/20 .............................................. 9.50 237,052,480
241,291 11/15/09-11/15/20 .............................................. 10.00 262,781,161
737 04/15/10-06/15/15 .............................................. 12.50 852,797
---------------
5,536,765,108
---------------
Government National Mortgage Assoc. II (0.7%)
50,963 01/20/24-02/20/24 .............................................. 6.50 47,188,464
---------------
Government National Mortgage Assoc. GPM I (0.1%)
10,639 06/15/13-09/15/15 .............................................. 12.25 12,025,647
---------------
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $5,651,628,761) ......................................... 5,595,979,219
---------------
U.S. GOVERNMENT OBLIGATIONS (14.8%)
U.S. Treasury Notes (6.7%)
38,500 07/15/96 ....................................................... 7.875 38,530,078
85,000 07/31/96 ....................................................... 7.875 85,172,656
30,000 08/31/96 ....................................................... 7.25 30,075,000
194,000 10/15/96 ....................................................... 8.00 195,364,063
59,000 04/30/97 ....................................................... 6.875 59,534,687
55,000 04/15/99 ....................................................... 7.00 55,979,688
---------------
464,656,172
---------------
U.S. Treasury Principal Strips (8.1%)
123,000 02/15/04 ....................................................... 0.00 74,273,230
380,000 05/15/04 ....................................................... 0.00 225,035,658
385,000 08/15/04 ....................................................... 0.00 224,217,147
75,000 11/15/04 ....................................................... 0.00 42,823,725
---------------
566,349,760
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Identified Cost $962,040,943) ........................................... 1,031,005,932
---------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS June 30, 1996 (unaudited) continued
PRINCIPAL
AMOUNT IN COUPON
THOUSANDS DESCRIPTION AND MATURITY DATE RATE VALUE
- ---------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (5.1%)
Resolution Funding Corp Zero Coupon Strips
$ 33,500 07/15/02 ....................................................... 0.00% $ 22,529,142
10,049 10/15/02 ....................................................... 0.00 6,639,540
109,000 04/15/03 ....................................................... 0.00 69,412,617
55,000 07/15/03 ....................................................... 0.00 34,403,831
69,000 10/15/03 ....................................................... 0.00 42,325,897
123,882 01/15/04 ....................................................... 0.00 74,626,480
104,419 04/15/04 ....................................................... 0.00 61,756,863
80,000 07/15/04 ....................................................... 0.00 46,455,768
---------------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $327,336,192) .......................................... 358,150,138
---------------
TOTAL INVESTMENTS
(Identified Cost $6,941,005,896) (b) ........................... 99.9% 6,985,135,289
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................. 0.1 8,022,830
----- ---------------
NET ASSETS ..................................................... 100.0% $6,993,158,119
===== ===============
</TABLE>
- ------------
GPM Graduated Payment Mortgage.
(a) Securities purchased on a forward commitment basis with an approximate
principal amount and no definite maturity date; the actual principal
amount and maturity date will be determined upon settlement.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation was $184,204,052 and the
aggregate gross unrealized depreciation was $140,074,659, resulting in net
unrealized appreciation of $44,129,393.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $6,941,005,896) ...... $ 6,985,135,289
Cash .................................... 1,141,048
Receivable for:
Investments sold ...................... 75,740,569
Interest .............................. 45,596,462
Shares of beneficial interest sold ... 1,148,624
Prepaid expenses and other assets ...... 163,785
---------------
TOTAL ASSETS .......................... 7,108,925,777
---------------
LIABILITIES:
Payable for:
Investments purchased ................. 100,341,667
Shares of beneficial interest
repurchased .......................... 5,440,691
Plan of distribution fee .............. 4,298,151
Dividends to shareholders ............. 2,529,568
Investment management fee ............. 2,394,977
Accrued expenses and other payables .... 762,604
---------------
TOTAL LIABILITIES ..................... 115,767,658
---------------
NET ASSETS:
Paid-in-capital ......................... 8,511,272,842
Net unrealized appreciation ............. 44,129,393
Accumulated undistributed net investment
income ................................. 2,113,730
Accumulated net realized loss ........... (1,564,357,846)
---------------
NET ASSETS ............................ $ 6,993,158,119
===============
NET ASSET VALUE PER SHARE,
795,114,575 shares outstanding
(unlimited shares authorized of $.01
par value) ............................. $8.80
=====
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ......................... $ 279,313,093
---------------
EXPENSES
Plan of distribution fee ................ 27,798,403
Investment management fee ............... 15,375,949
Transfer agent fees and expenses ....... 2,299,526
Custodian fees .......................... 411,298
Shareholder reports and notices ........ 74,339
Professional fees ....................... 60,971
Trustees' fees and expenses ............. 13,714
Registration fees ....................... 13,133
Servicing fees .......................... 8,185
Other ................................... 35,561
---------------
TOTAL EXPENSES ........................ 46,091,079
---------------
NET INVESTMENT INCOME ................. 233,222,014
---------------
NET REALIZED AND UNREALIZED LOSS:
Net realized loss ....................... (14,871,287)
Net change in unrealized depreciation (335,494,613)
---------------
NET LOSS .............................. (350,365,900)
---------------
NET DECREASE ............................ $(117,143,886)
===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED DECEMBER
JUNE 30, 1996 31, 1995
- ------------------------------------------------------ -------------- -----------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................. $ 233,222,014 $ 522,928,136
Net realized loss ..................................... (14,871,287) (77,736,417)
Net change in unrealized appreciation/depreciation ... (335,494,613) 811,733,423
-------------- --------------
NET INCREASE (DECREASE) ............................. (117,143,886) 1,256,925,142
Dividends from net investment income .................. (233,479,077) (522,076,848)
Net decrease from transactions in shares of beneficial
interest ............................................. (611,124,939) (990,646,568)
-------------- --------------
TOTAL DECREASE ...................................... (961,747,902) (255,798,274)
NET ASSETS:
Beginning of period ................................... 7,954,906,021 8,210,704,295
-------------- --------------
END OF PERIOD
(Including undistributed net investment income of
$2,113,730 and $2,370,793, respectively) ............ $6,993,158,119 $7,954,906,021
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter U.S. Government Securities Trust (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund's investment objective is
high current income consistent with safety of principal. The Fund seeks to
achieve its objective by investing in obligations issued or guaranteed by the
U.S. Government or its instrumentalities. The Fund was organized as a
Massachusetts trust on September 29, 1983 and commenced operations on June
29, 1984.
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 -- (1) all portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (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 debt
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 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 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 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 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 U.S. GOVERNMENT SECURITIES TRUST
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 following
annual rates to the Fund's net assets determined at the close of each
business day: 0.50% to the portion of daily net assets not exceeding $1
billion; 0.475% to the portion of daily net assets exceeding $1 billion but
not exceeding $1.5 billion; 0.45% to the portion of daily net assets
exceeding $1.5 billion but not exceeding $2 billion; 0.425% to the portion of
daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.40%
to the portion of daily net assets exceeding $2.5 billion but not exceeding
$5 billion; 0.375% to the portion of daily net assets exceeding $5 billion
but not exceeding $7.5 billion; 0.35% to the portion of daily net assets
exceeding $7.5 billion but not exceeding $10 billion; 0.325% to the portion
of daily net assets exceeding $10 billion but not exceeding $12.5 billion;
and 0.30% to the portion of 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, 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. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager. 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
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (unaudited) continued
monthly, at an 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 Fund's inception (not including reinvestment of dividend or
capital gain 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
provided and the expenses borne by it and others 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
Distributor, and other employees or selected broker-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 and preparation,
printing and distribution of sales literature and advertising materials. In
addition, the Distributor may be compensated under the Plan for its
opportunity costs in advancing such amounts which compensation would be in
the form of a carrying charge on any unreimbursed 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.
The Distributor has informed the Fund that for the six months ended June 30,
1996, it received approximately $4,503,000 in contingent deferred sales
charges from certain redemptions of the Fund's shares. The Fund's
shareholders pay such charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The costs of purchases and sales/prepayments of portfolio securities,
excluding short-term investments, for the six months ended June 30, 1996 were
$99,970,145 and $165,065,723, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At June 30, 1996, the Fund had
transfer agent fees and expenses payable of approximately $454,000.
The Fund has an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement.
Benefits under this plan are based on years of service and compensation
during the last five years of service. Aggregate pension costs for the six
months ended June 30, 1996 included in Trustees'
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS June 30, 1996 (unaudited) continued
fees and expenses in the Statement of Operations amounted to $639. At June
30, 1996, the Fund had an accrued pension liability of $50,632 which is
included in accrued expenses in the Statement of Assets and Liabilities.
5. 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 ...................... 18,608,704 $ 166,776,342 48,336,027 $ 429,525,036
Reinvestment of dividends.. 13,395,245 119,417,296 30,293,874 269,738,501
--------------- -------------- --------------- ----------------
32,003,949 286,193,638 78,629,901 699,263,537
Repurchased ............... (100,604,768) (897,318,577) (190,805,203) (1,689,910,105)
--------------- -------------- --------------- ----------------
Net decrease .............. (68,600,819) $(611,124,939) (112,175,302) $ (990,646,568)
=============== ============== =============== ================
</TABLE>
6. FEDERAL INCOME TAX STATUS
At December 31, 1995, the Fund had a net capital loss carryover which may be
used to offset future capital gains to the extent provided by regulations
which is available through December 31 in the following years:
<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS
- -----------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 2003 TOTAL
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$277,199 $270,987 $108,731 $261,525 $154,964 $263,492 $118,056 $63,667 $1,518,621
======== ======== ======== ======== ======== ======== ======== ======== ==========
</TABLE>
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
approximately $30,865,000 during fiscal 1995.
At December 31, 1995, the Fund had temporary book/tax differences primarily
attributable to post-October losses and a permanent book/tax difference
attributable to expired capital loss carryover. To reflect reclassifications
arising from permanent book/tax differences for the year ended December 31,
1995, accumulated net realized loss was credited and paid-in-capital was
charged $228,402,412.
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
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
--------------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
(unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .... $ 9.21 $ 8.41 $ 9.31 $ 9.30 $ 9.52 $ 9.37
--------- -------- --------- --------- --------- ---------
Net investment income .................... 0.28 0.57 0.58 0.64 0.74 0.87
Net realized and unrealized gain (loss) . (0.41) 0.80 (0.90) 0.01 (0.22) 0.15
--------- -------- --------- --------- --------- ---------
Total from investment operations ........ (0.13) 1.37 (0.32) 0.65 0.52 1.02
--------- -------- --------- --------- --------- ---------
Less dividends from net investment income (0.28) (0.57) (0.58) (0.64) (0.74) (0.87)
--------- -------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 8.80 $ 9.21 $ 8.41 $ 9.31 $ 9.30 $ 9.52
========= ======== ========= ========= ========= =========
TOTAL INVESTMENT RETURN+ ................. (1.55)%(1) 16.74% (3.51)% 7.13% 5.76% 11.43%
RATIOS TO AVERAGE NET ASSETS:
Expenses ................................. 1.24%(2) 1.24% 1.22% 1.18% 1.20% 1.17%
Net investment income .................... 6.29%(2) 6.44% 6.57% 6.78% 7.91% 9.23%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions .. $6,993 $7,955 $8,211 $12,235 $12,484 $11,736
Portfolio turnover rate .................. 4%(1) 14% 26% 32% 40% 104%
</TABLE>
- ------------
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
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
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
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
U.S. GOVERNMENT
SECURITIES
TRUST
[GRAPHICS OMITTED]
SEMIANNUAL REPORT
JUNE 30, 1996
