<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST TWO WORLD TRADE CENTER, NEW YORK,
NEW YORK 10048
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995
DEAR SHAREHOLDER:
During the twelve-month period ended December 31, 1995, interest rates on U.S.
Treasury securities declined to levels not seen since early 1994. Much of the
U.S. Treasury market's strength during the past twelve months can be attributed
to a more accommodative monetary policy by the Federal Reserve Board (In July,
and again in December, the central bank lowered the federal-funds rate by 25
basis points). Current economic data support the perception that the central
bank has successfully orchestrated a soft landing whereby the U.S. economy is
growing quickly enough to avoid recession, yet not so rapidly that inflationary
pressure becomes a major issue. However, indications of a more dramatic slowdown
in economic activity are appearing, particularly in automobile and retail
sectors.
As a result of a slowing economy and lower interest rates, the U.S. Treasury
market recorded one of its best 12-month performance periods in years. On
December 31, 1995, the 5-year U.S. Treasury note was yielding 5.38 percent
compared to 7.83 percent twelve-months ago. During the same period, the yield on
the 30-year U.S. Treasury bond declined 193 basis points (1.93 percentage
points) to 5.95 percent.
PERFORMANCE AND PORTFOLIO STRUCTURE
The Fund's performance for the fiscal year was reflective of the sharply lower
interest rate environment in conjunction with the portfolio's relatively
conservative maturity structure. For the twelve-month period ended December 31,
1995, the Fund produced a total return of 16.74 percent, compared to a return of
18.34 percent for the unmanaged Lehman Brothers Mutual Fund General U.S.
Government Index. During the fiscal year, the Fund distributed income dividends
totaling $0.57 per share. The accompanying chart illustrates the growth of a
$10,000 investment in the Fund for the ten-year period beginning December 31,
1985 through the fiscal year ended December 31, 1995, versus a similar
hypothetical investment in the issues that comprise the Lehman Brothers General
U.S. Government Index. (The Fund's inception date is June 29, 1984.)
The Fund's portfolio continues to be well diversified. As of December 31, 1995,
76 percent of the portfolio was invested in Government National Mortgage
Association mortgage-backed securities
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995, CONTINUED
(GNMAs), 17 percent in U.S. Treasury securities and 7 percent in Resolution
Funding Corporation securities (REFCORP). Throughout 1995, the Fund's average
maturity reflected a constructive market stance. Accordingly, the Fund's average
maturity was gradually extended as attractive investment opportunities became
available. On December 31, 1995, the Fund's average maturity was 7.1 years and
its average duration was 5.0 years. (Duration measures a bond fund's price
sensitivity to interest rate changes.)
As we enter 1996, we expect to further reduce the portfolio's high-coupon,
short-term U.S. Treasury position and reinvest the proceeds into both GNMAs and
current-coupon U.S. Treasuries. We believe
[GRAPHIC]
that GNMAs continue to offer
significant long-term value and, in the
present investment environment, offer
not only an incremental yield incentive
over U.S. Treasury securities of
similar maturity but also the potential
for attractive total return.
LOOKING AHEAD
We believe the U.S. economy will
maintain a slow-to-moderate pace in the
first half of 1996 and that the Federal
Reserve Board will continue to make
modest adjustments to monetary policy
as evidence of weak economic trends
emerge. Such action may warrant more
aggressive monetary easing should the
legislators in Washington pass a
credible deficit-reduction package.
Inflation should continue to remain
subdued in the year ahead.
We appreciate your support of Dean
Witter U.S. Government Securities Trust
and look forward to continuing to serve
your investment objectives in the
months and years to come.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES (76.7%)
Government National Mortgage Assoc. I (75.9%)
$ 373,910 10/15/22-2/15/24........................................ 6.50 % $ 370,988,359
100,000 (a)..................................................... 7.00 101,109,375
2,179,249 04/15/17-02/15/26....................................... 7.00 2,204,446,292
1,433,074 11/15/02-11/15/25....................................... 7.50 1,473,379,266
428,419 10/15/16-12/15/24....................................... 8.00 446,090,937
474,234 07/15/06-04/15/25....................................... 8.50 497,649,198
346,852 10/15/08-08/15/21....................................... 9.00 367,337,760
252,689 10/15/09-12/15/20....................................... 9.50 271,087,840
278,046 11/15/09-11/15/20....................................... 10.00 305,329,750
800 04/15/10-06/15/15....................................... 12.50 912,775
-----------------
6,038,331,552
-----------------
Government National Mortgage Assoc. II (0.6%)
52,398 01/20/24-02/20/24....................................... 6.50 51,661,279
-----------------
Government National Mortgage Assoc. GPM I (0.2%)
12,511 06/15/13-09/15/15....................................... 12.25 14,173,002
-----------------
TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $5,912,862,423)................................... 6,104,165,833
-----------------
U.S. GOVERNMENT OBLIGATIONS (17.4%)
U.S. Treasury Notes (9.8%)
59,500 01/15/96................................................ 9.25 59,583,672
193,500 02/15/96................................................ 8.875 194,316,328
50,000 02/29/96................................................ 7.50 50,187,500
95,000 03/31/96................................................ 7.75 95,564,063
38,000 04/15/96................................................ 9.375 38,445,312
62,000 04/30/96................................................ 7.625 62,445,625
9,000 10/15/96................................................ 8.00 9,184,218
20,500 03/31/97................................................ 6.875 20,900,391
189,000 04/30/97................................................ 6.875 192,986,719
55,000 04/15/99................................................ 7.00 57,792,969
-----------------
781,406,797
-----------------
U.S. Treasury Principal Strips (7.6%)
123,000 02/15/04................................................ 0.00 78,317,040
380,000 05/15/04................................................ 0.00 237,860,620
385,000 08/15/04................................................ 0.00 237,627,852
75,000 11/15/04................................................ 0.00 45,573,180
-----------------
599,378,692
-----------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $1,270,503,037)................................... 1,380,785,489
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES (6.5%)
Resolution Funding Corp Zero Coupon Strips
$ 19,000 01/15/02................................................ 0.00 % $ 13,678,155
51,500 07/15/02................................................ 0.00 36,035,029
47,049 10/15/02................................................ 0.00 32,369,514
62,000 01/15/03................................................ 0.00 41,897,628
109,000 04/15/03................................................ 0.00 72,491,660
55,000 07/15/03................................................ 0.00 35,989,074
80,000 10/15/03................................................ 0.00 51,542,408
143,882 01/15/04................................................ 0.00 91,182,513
104,419 04/15/04................................................ 0.00 65,088,863
80,000 07/15/04................................................ 0.00 49,077,400
50,000 01/15/05................................................ 0.00 29,704,285
-----------------
TOTAL U.S. GOVERNMENT AGENCIES
(IDENTIFIED COST $441,018,385)..................................... 519,056,529
-----------------
SHORT-TERM INVESTMENT (b) (0.4%)
U.S. GOVERNMENT OBLIGATION
U.S. Treasury Bill
30,000 01/18/96
(Amortized Cost $29,947,583)............................ 3.70 29,947,583
-----------------
TOTAL INVESTMENTS
(IDENTIFIED COST $7,654,331,428) (C)...... 101.0% 8,033,955,434
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS.................................... (1.0) (79,049,413)
----- -------------
NET ASSETS................................ 100.0% $7,954,906,021
----- -------------
----- -------------
<FN>
- ---------------------
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) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(c) The aggregate cost for federal income tax purposes is $7,654,331,428; the
aggregate gross unrealized appreciation is $404,472,011 and the aggregate
gross unrealized depreciation is $24,848,005, resulting in net unrealized
appreciation of $379,624,006.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $7,654,331,428).......................... $ 8,033,955,434
Cash........................................................ 1,002,221
Receivable for:
Interest................................................ 54,580,493
Shares of beneficial interest sold...................... 3,841,983
Prepaid expenses and other assets........................... 67,893
---------------
TOTAL ASSETS........................................... 8,093,448,024
---------------
LIABILITIES:
Payable for:
Investments purchased................................... 100,170,139
Dividends............................................... 19,672,951
Shares of beneficial interest repurchased............... 9,995,112
Plan of distribution fee................................ 5,059,870
Investment management fee............................... 2,775,314
Accrued expenses and other payables......................... 868,617
---------------
TOTAL LIABILITIES...................................... 138,542,003
---------------
NET ASSETS:
Paid-in-capital............................................. 9,122,397,781
Net unrealized appreciation................................. 379,624,006
Accumulated undistributed net investment income............. 2,370,793
Accumulated net realized loss............................... (1,549,486,559)
---------------
NET ASSETS............................................. $ 7,954,906,021
---------------
---------------
NET ASSET VALUE PER SHARE,
863,715,394 SHARES OUTSTANDING (UNLIMITED SHARES
AUTHORIZED OF $.01 PAR VALUE).............................
$9.21
---------------
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $ 623,354,027
--------------
EXPENSES
Plan of distribution fee.................................... 60,901,969
Investment management fee................................... 33,295,918
Transfer agent fees and expenses............................ 4,962,240
Custodian fees.............................................. 903,937
Shareholder reports and notices............................. 210,505
Professional fees........................................... 98,105
Registration fees........................................... 59,225
Trustees' fees and expenses................................. 33,537
Servicing fees.............................................. 19,562
Other....................................................... 138,779
--------------
TOTAL EXPENSES BEFORE EXPENSE OFFSET................... 100,623,777
LESS EXPENSE OFFSET.................................... (197,886)
--------------
TOTAL EXPENSES AFTER EXPENSE OFFSET.................... 100,425,891
--------------
NET INVESTMENT INCOME.................................. 522,928,136
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss........................................... (77,736,417)
Net change in unrealized depreciation....................... 811,733,423
--------------
NET GAIN............................................... 733,997,006
--------------
NET INCREASE................................................ $1,256,925,142
--------------
--------------
</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 YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 522,928,136 $ 672,850,910
Net realized loss........................................... (77,736,417) (93,634,833)
Net change in unrealized appreciation/depreciation.......... 811,733,423 (1,005,227,953)
----------------- -----------------
NET INCREASE (DECREASE)................................ 1,256,925,142 (426,011,876)
Dividends from net investment income........................ (522,076,848) (671,363,981)
Net decrease from transactions in shares of beneficial
interest.................................................. (990,646,568) (2,926,948,321)
----------------- -----------------
TOTAL DECREASE......................................... (255,798,274) (4,024,324,178)
NET ASSETS:
Beginning of period......................................... 8,210,704,295 12,235,028,473
----------------- -----------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$2,370,793 AND $1,519,505, RESPECTIVELY)................ $ 7,954,906,021 $ 8,210,704,295
----------------- -----------------
----------------- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
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
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995, CONTINUED
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 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 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
average daily net assets not exceeding $1 billion; 0.475% to the portion of
average daily net assets exceeding $1 billion but not exceeding $1.5 billion;
0.45% to the portion of average daily net assets exceeding $1.5 billion but not
exceeding $2 billion; 0.425% to the portion of average daily net assets
exceeding $2 billion but not exceeding $2.5 billion; 0.40% to the portion of
average daily net assets exceeding $2.5 billion but not exceeding $5 billion;
0.375% to the portion of average daily net assets exceeding $5 billion but not
exceeding $7.5 billion; 0.35% to the portion of average daily net assets
exceeding $7.5 billion but not exceeding $10 billion; 0.325% to the portion of
average daily net assets exceeding $10 billion but not exceeding $12.5 billion;
and 0.30% to the portion of average 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
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995, CONTINUED
12b-1 under the Act pursuant to which the Fund pays the Distributor
compensation, accrued daily and payable 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 year ended December 31, 1995,
it received approximately $10,629,000 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 the proceeds of sales/prepayments of portfolio
securities, excluding short-term investments, for the year ended December 31,
1995 were $1,109,090,830 and $2,254,100,243, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At December 31, 1995, the Fund had
transfer agent fees and expenses payable of approximately $476,000.
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995, CONTINUED
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 year ended December 31, 1995
included in Trustees' fees and expenses in the Statement of Operations amounted
to $7,008. At December 31, 1995, the Fund had an accrued pension liability of
$52,554 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 YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 48,336,027 $ 429,525,036 67,499,792 $600,440,123
Reinvestment of dividends........................................ 30,293,874 269,738,501 39,882,269 348,224,623
----------- -------------- ----------- ------------
78,629,901 699,263,537 107,382,061 948,664,746
Repurchased...................................................... (190,805,203) (1,689,910,105) (445,440,434) (3,875,613,067)
----------- -------------- ----------- ------------
Net decrease..................................................... (112,175,302) $ (990,646,568) (338,058,373) $(2,926,948,321)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</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>
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 an 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 YEAR ENDED DECEMBER 31
----------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of
period.......... $ 8.41 $ 9.31 $ 9.30 $ 9.52 $ 9.37 $ 9.51 $ 9.42 $ 9.75 $ 10.33 $ 10.53
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
Net investment
income.......... 0.57 0.58 0.64 0.74 0.87 0.90 0.91 0.97 0.96 1.02
Net realized and
unrealized gain
(loss).......... 0.80 (0.90) 0.01 (0.22) 0.15 (0.14) 0.09 (0.33) (0.58) (0.20)
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
Total from
investment
operations...... 1.37 (0.32) 0.65 0.52 1.02 0.76 1.00 0.64 0.38 0.82
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
Less dividends
from net
investment
income.......... (0.57) (0.58) (0.64) (0.74) (0.87) (0.90) (0.91) (0.97) (0.96) (1.02)
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
Net asset value,
end of period... $ 9.21 $ 8.41 $ 9.31 $ 9.30 $ 9.52 $ 9.37 $ 9.51 $ 9.42 $ 9.75 $ 10.33
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
TOTAL INVESTMENT
RETURN+.......... 16.74% (3.51)% 7.13% 5.76% 11.43% 8.49% 11.10% 6.74% 3.92% 8.23%
RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 1.24% 1.22% 1.18% 1.20% 1.17% 1.23% 1.19% 1.21% 1.18% 1.20%
Net investment
income.......... 6.44% 6.57% 6.78% 7.91% 9.23% 9.60% 9.62% 10.01% 9.63% 9.72%
SUPPLEMENTAL DATA:
Net assets, end
of period, in
millions........ $7,955 $8,211 $12,235 $12,484 $11,736 $9,829 $10,167 $10,366 $10,418 $11,100
Portfolio
turnover rate... 14% 26% 32% 40% 104% 54% 44% 15% 51% 93%
<FN>
- ---------------------
+ Does not reflect the deduction of sales charge.
</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, 1995, 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 ten years in the period then ended, 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 at December 31, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
FEBRUARY 5, 1996
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
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
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
[Graphic]
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
DEAN WITTER U.S. GOVERNMENT SECURITIES TRUST
GROWTH OF $10,000
DATE TOTAL LEHMAN U.S. GOVT.
INDEX
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1985 $10,000 $10,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1986 $10,823 $11,531
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1987 $11,248 $11,785
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1988 $12,006 $12,613
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1989 $13,338 $14,408
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1990 $14,471 $15,664
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1991 $16,125 $18,064
- -------------------------------------------------------------------------------
December 31, 1992 $17,053 $19,370
- -------------------------------------------------------------------------------
December 31, 1993 $18,269 $21,435
- -------------------------------------------------------------------------------
December 31, 1994 $17,628 $20,711
- -------------------------------------------------------------------------------
December 31, 1995 $20,579(3) $24,507
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
-------------------------------------
-------------------------------------
16.74(1) 7.30(1) 7.48(1)
-------------------------------------
11.74(2) 7.00(2) 7.48(2)
-------------------------------------
-------------------------------------
-------------------------------
-------------------------------
Fund Lehman(4)
---- ------
-------------------------------
-------------------------------
Past performance is not predictive of future returns.
- --------------------------------------
(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%, 10 years-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, 1995.
(4) The Lehman Brothers General U.S. Government Index is a broad-based,
unmanaged measure of all U.S. Government and U.S. Treasury Securities.
The Index does not include any expenses, fees or charges. The Index
is unmanaged and should not be considered an investment.
