<PAGE> 1
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
Strong economic growth and a shift in Federal Reserve Board monetary policy
during the first half of 1994 resulted in the sharpest increase in interest
rates in more than six years. At the beginning of the year, most economic
indicators were pointing toward a vigorous recovery. Concerns over potential
inflationary pressure developed as the job market approached full employment and
commodity prices remained volatile. The Federal Reserve Board responded by
tightening monetary policy. Between February and May, the central bank raised
the federal-funds rate -- the interest rate banks charge each other for
overnight loans -- from 3.00 percent to 4.25 percent in four separate moves. In
May, the discount rate -- the interest rate the Federal Reserve charges member
banks for loans -- was increased by 50 basis points to 3.50 percent.
Long-term municipal bond yields, as measured by The Bond Buyer Revenue Bond
Index,* were little changed between October and January. However, in February
and March the Index yield rose 89 basis points from 5.50 percent to 6.39
percent. During April, May and June the municipal market began to show signs of
stability, despite 15 to 20 basis point yield changes each month. At the end of
June the Index yielded 6.56 percent.
The municipal market is also influenced by unique supply and demand
conditions. New-issue underwriting totaled a record $290 billion in 1993. The
pace of new-issue activity over the first half of 1994, however, slowed 40
percent to a projected annual rate of $180 billion. By way of comparison, bond
maturities and calls for redemptions will reduce municipal debt outstanding by
approximately $190 billion. This imbalance helped municipal securities
outperform their U.S. Treasury counterparts during the second quarter. With $10
billion, New York was the second largest state source of new issues,
representing 11 percent of total offerings.
PERFORMANCE
For the six-month period ended June 30, 1994, Dean Witter New York Tax-Free
Income Fund paid shareholders tax-free income dividends totaling $0.29 per share
and capital gains distributions totaling $0.16 per share. The Fund's total
return for this period was -6.05 percent and is a result of the portfolio's
decline in value. Since inception the Fund has provided shareholders with an
attractive average annual return of 8.32 percent. The Fund's net assets exceeded
$227 million.
PORTFOLIO STRUCTURE
The net short-term investment position at the end of June was 7.5 percent.
Refunded bonds with escrows set to be called within 10 years comprised another
11 percent of the portfolio. Long-term investments were diversified among 13
specific municipal sectors and 38 credits. The three largest sectors in the
portfolio were industrial development/pollution control, water & sewer and
educational facilities revenue bonds, comprising 37 percent of net assets. The
average maturity and call protection of the Fund's long-term holdings were 18
years and 8 years, respectively. Bonds subject to the alternative
- ---------------
* The Bond Buyer Revenue Bond Index is an arithmetic average of the yields of 25
selected municipal revenue bonds with 30-year maturities. Ratings of these
bonds range from Aa1 to Baa1, as measured by Moody's and AA+ to A-, as
measured by Standard & Poor's.
<PAGE> 2
minimum tax (AMT) comprised approximately 6 percent of net assets. The credit
quality ratings of the long-term portfolio are summarized below:
<TABLE>
<CAPTION>
MOODY'S OR STANDARD & POOR'S RATING PERCENT
---------------------------------------------------------------------------- -------
<S> <C>
Aaa or AAA.................................................................. 23
Aa or AA.................................................................... 20
A or A...................................................................... 33
Baa or BBB.................................................................. 22
Not rated................................................................... 2
</TABLE>
LOOKING AHEAD
A continuation of low new-issue supply coupled with significant bond calls
and maturities should help support municipal bond values, as well as sustain
investor demand for municipal securities. However, the overall direction of
interest rates will primarily be determined by the strength of the economy, the
trend of inflation and the Federal Reserve Board's response to economic
conditions. The level of interest rates and bond redemption activity are the key
factors expected to influence the Fund's future results.
We appreciate your ongoing support of Dean Witter New York Tax-Free Income
Fund and look forward to continuing to serve your investment needs.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 3
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<S> <C> <C> <C> <C>
NEW YORK EXEMPT MUNICIPAL BONDS (90.8%)
GENERAL OBLIGATION (6.8%)
New York City,
$ 3,500 Various Purpose 1973......................................... 3.50 % 5/ 1/01 $ 3,009,650
2,500 Various Purpose 1973......................................... 3.50 5/ 1/03 2,029,500
4,000 1990 Ser D................................................... 6.00 8/ 1/06 3,902,520
8,800 Puerto Rico, Pub Impr Refg Ser 1987 A........................ 3.00 7/ 1/06 6,557,760
- ---------- ------------
18,800 15,499,430
- ---------- ------------
EDUCATIONAL FACILITIES REVENUE (11.2%)
New York State Dormitory Authority,
2,150 City University Ser U........................................ 6.375 7/ 1/08 2,143,098
3,000 City University Ser 1993 A................................... 5.75 7/ 1/09 2,841,360
5,000 City University Ser 1993 F................................... 5.50 7/ 1/12 4,439,900
3,000 State University Ser 1989 B.................................. 0.00 5/15/05 1,494,660
10,000 State University Ser 1993 C.................................. 5.375 5/15/13 8,717,100
2,000 State University Ser 1993 A.................................. 5.25 5/15/15 1,722,520
4,000 University of Rochester Ser 1987............................. 6.50 7/ 1/09 4,164,840
- ---------- ------------
29,150 25,523,478
- ---------- ------------
ELECTRIC REVENUE (6.7%)
10,000 New York State Power Authority, Ser CC....................... 5.00 1/ 1/14 8,433,000
8,000 Puerto Rico Electric Power Authority, Power Ser O............ 5.00 7/ 1/12 6,805,360
- ---------- ------------
18,000 15,238,360
- ---------- ------------
HOSPITAL REVENUE (7.0%)
New York State Medical Care Facilities Finance Agency,
10,000 Insured Hospital & Nursing Home -- FHA Insured Mtge
1993 Ser B................................................... 5.50 2/15/22 8,758,000
2,490 Insured Hospital & Nursing Home -- FHA Insured Mtge
1985 Ser B................................................... 9.125 2/15/25 2,625,506
4,000 St Luke's -- Roosevelt Hospital Center -- FHA Insured Mtge
1989 Ser B (Prerefunded)..................................... 7.40 2/15/09 4,444,640
- ---------- ------------
16,490 15,828,146
- ---------- ------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE (13.8%)
4,500 New York City Industrial Development Agency, 1990 American
Airlines Inc (AMT)........................................... 8.00 7/ 1/20 4,674,870
New York State Energy Research & Development Authority,
3,500 Brooklyn Union Gas Co 1993 Ser B RIBS........................ 9.15 + 4/ 1/20 3,408,125
7,500 Brooklyn Union Gas Co 1991 Ser B RIBS (AMT).................. 10.48 + 7/15/26 7,940,625
5,000 Consolidated Edison Co of New York Inc Refg Ser 1993 B....... 5.25 8/15/20 4,252,050
4,000 Consolidated Edison Co of New York Inc Ser 1986 A (AMT)...... 7.50 11/15/21 4,223,720
2,500 Long Island Lighting Co 1990 Ser A (AMT)..................... 7.15 6/ 1/20 2,493,925
4,000 Niagara Mohawk Power Corp 1985 Ser I......................... 8.875 11/ 1/25 4,303,720
- ---------- ------------
31,000 31,297,035
- ---------- ------------
MORTGAGE REVENUE -- MULTI-FAMILY (2.5%)
New York City Housing Development Corporation,
2,448 East Midtown Proj -- FHA Insured Sec 223..................... 6.50 11/15/18 2,335,778
1,000 Gen Hsg Ser A (AMBAC Insured)................................ 6.50 5/ 1/06 1,036,210
2,446 Ruppert Proj -- FHA Insured Sec 223.......................... 6.50 11/15/18 2,334,344
- ---------- ------------
5,894 5,706,332
- ---------- ------------
</TABLE>
<PAGE> 4
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<S> <C> <C> <C> <C>
MORTGAGE REVENUE -- SINGLE FAMILY (4.6%)
New York State Mortgage Agency,
$ 35 Fifth Ser.................................................... 9.75 % 10/ 1/10 $ 36,367
4,500 Homeowner Ser 27............................................. 6.90 4/ 1/15 4,569,480
5,000 Homeowner Ser 29A............................................ 5.25 4/ 1/15 4,277,600
1,400 Ser MM-1 (AMT)............................................... 7.95 10/ 1/21 1,483,734
- ---------- ------------
10,935 10,367,181
- ---------- ------------
NURSING & HEALTH RELATED FACILITIES REVENUE (1.2%)
New York State Medical Care Facilities Finance Authority,
2,500 Long Term Health Care 1992 Ser D (Capital Guaranty Insured).. 6.50 11/ 1/15 2,535,350
270 Mental Health 1991 Ser A..................................... 7.50 2/15/21 293,482
- ---------- ------------
2,770 2,828,832
- ---------- ------------
PUBLIC FACILITIES REVENUE (3.4%)
3,000 New York State Dormitory Authority, Suffolk County Judicial
Ser 1986 (ETM)............................................... 7.375 7/ 1/16 3,467,850
3,750 New York State Urban Development Corporation, Correctional
Ser 3 (Prerefunded).......................................... 7.375 1/ 1/18 4,277,325
- ---------- ------------
6,750 7,745,175
- ---------- ------------
RESOURCE RECOVERY REVENUE (3.6%)
3,000 Hempstead Industrial Development Agency, 1985 American
REF-FUEL Co of Hempstead..................................... 7.40 12/ 1/10 3,120,930
3,000 New York State Environmental Facilities Corporation,
Huntington
1989 Ser A (AMT)............................................. 7.50 10/ 1/12 3,043,350
2,000 Oneida-Herkimer Solid Waste Management Authority, Ser 1992... 6.75 4/ 1/14 2,001,220
- ---------- ------------
8,000 8,165,500
- ---------- ------------
TRANSPORTATION REVENUE (5.1%)
3,400 Port Authority of New York & New Jersey, Cons 53rd Ser....... 8.70 7/15/20 3,636,402
3,000 Triborough Bridge & Tunnel Authority, Gen Purpose Ser 1993
B............................................................ 5.00 1/ 1/20 2,478,570
6,000 Puerto Rico Highway & Transportation Authority, Refg Ser X... 5.50 7/ 1/15 5,432,220
- ---------- ------------
12,400 11,547,192
- ---------- ------------
WATER & SEWER REVENUE (12.1%)
New York City Municipal Water Finance Authority,
4,000 1994 Ser B................................................... 5.375 6/15/07 3,739,240
3,000 1991 Ser C (Prerefunded)..................................... 7.375 6/15/14 3,408,390
4,000 1990 Ser A................................................... 6.00 6/15/19 3,768,560
Suffolk County Industrial Development Agency,
5,000 Suffolk County Southwest Sewer Ser 1994 (FGIC Insured)....... 6.00 2/ 1/07 5,092,600
4,000 Suffolk County Southwest Sewer Ser 1994 (FGIC Insured)....... 6.00 2/ 1/08 4,040,440
7,000 Puerto Rico Aqueduct & Sewer Authority, Ser 1988 A........... 7.90 7/ 1/07 7,574,840
- ---------- ------------
27,000 27,624,070
- ---------- ------------
</TABLE>
<PAGE> 5
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<S> <C> <C> <C> <C>
OTHER REVENUE (12.8%)
$ 4,000 Municipal Assistance Corporation for the City of New York,
Ser 57....................................................... 7.25 % 7/ 1/08 $ 4,258,480
New York Local Government Assistance Corporation,
5,000 Refg Ser 1993 C.............................................. 5.50 4/ 1/17 4,453,050
5,000 Ser 1991 B (Prerefunded)..................................... 7.50 4/ 1/20 5,718,150
5,000 New York State Dormitory Authority, The Metropolitan Museum
of
Art Ser 1987 (Prerefunded)................................... 7.625 7/ 1/15 5,330,850
10,000 United Nations Development Corporation, 1992 Refg Ser A Sr
Lien......................................................... 6.00 7/ 1/26 9,380,900
- ---------- ------------
29,000 29,141,430
- ---------- ------------
216,189 TOTAL NEW YORK EXEMPT MUNICIPAL BONDS
- ---------- (IDENTIFIED COST $203,736,499)............................... 206,512,161
------------
NEW YORK EXEMPT SHORT-TERM MUNICIPAL OBLIGATIONS
(7.0%)
6,500 New York City Industrial Development Authority, National
Audubon Society Inc Ser 1989 (Tender 7/1/94)................. 3.00 * 12/ 1/14 6,500,000
9,500 New York State Dormitory Authority, Cornell University Ser
1990 B
(Tender 7/1/94).............................................. 3.00 * 7/ 1/25 9,500,000
- ---------- ------------
16,000 TOTAL NEW YORK EXEMPT SHORT-TERM MUNICIPAL
- ----------
OBLIGATIONS (IDENTIFIED COST $16,000,000).................... 16,000,000
------------
$ 232,189 TOTAL INVESTMENTS
========== (IDENTIFIED COST $219,736,499)(A)...................................... 97.8% 222,512,161
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES......................... 2.2 5,098,965
NET ASSETS............................................................. 100.0% $227,611,126
====== ============
</TABLE>
- ---------------
AMT Alternative Minimum Tax
ETM Escrow To Maturity
RIBS Residual Interest Bonds
+ Current coupon rate for residual interest bonds. This rate resets
periodically as the auction rate on the related short-term securities
fluctuates.
* Variable or floating rate securities. Coupon rate shown reflects current
rate.
(a) The aggregate cost for federal income tax purposes is $219,736,499; the
aggregate gross unrealized appreciation is $11,025,673 and the aggregate
gross unrealized depreciation is $8,250,011, resulting in net unrealized
appreciation of $2,775,662.
See Notes to Financial Statements
<PAGE> 6
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1994 (unaudited)
- -------------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $219,736,499) (Note
1)....................................... $ 222,512,161
Cash....................................... 959,678
Receivable for:
Interest................................. 4,475,088
Shares of beneficial interest sold....... 151,338
Prepaid expenses and other assets.......... 35,005
-------------
TOTAL ASSETS....................... 228,133,270
-------------
LIABILITIES:
Payables for:
Plan of distribution fee (Note 3)........ 137,946
Shares of beneficial interest
repurchased............................ 132,437
Investment management fee (Note 2)....... 104,691
Dividend to shareholders................... 60,571
Accrued expenses (Note 4).................. 86,499
-------------
TOTAL LIABILITIES.................. 522,144
-------------
NET ASSETS:
Paid-in-capital............................ 223,252,907
Accumulated undistributed net realized gain
on investments........................... 1,582,557
Net unrealized appreciation on
investments.............................. 2,775,662
-------------
NET ASSETS......................... $ 227,611,126
=============
NET ASSET VALUE PER SHARE,
20,147,716 shares outstanding (unlimited
authorized shares of $.01 par value)..... $11.30
======
STATEMENT OF OPERATIONS
For the six months ended June 30, 1994 (unaudited)
- -------------------------------------------
INVESTMENT INCOME:
INTEREST INCOME........................... $ 7,396,415
-------------
EXPENSES
Plan of distribution fee (Note 3)........ 823,154
Investment management fee (Note 2)....... 644,981
Transfer agent fees and expenses......... 53,147
Professional fees........................ 18,512
Shareholder reports and notices.......... 18,508
Trustees' fees and expenses.............. 15,226
Registration fees........................ 1,504
Other.................................... 7,709
-------------
TOTAL EXPENSES......................... 1,582,741
-------------
NET INVESTMENT INCOME................ 5,813,674
-------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (Note 1):
Net realized gain on investments......... 1,582,532
Net change in unrealized appreciation
on investments......................... (22,383,276)
-------------
NET LOSS ON INVESTMENTS................ (20,800,744)
-------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................... $ (14,987,070)
=============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
six months ended For the
June 30, 1994 year ended
(unaudited) December 31, 1993
----------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................. $ 5,813,674 $ 11,996,748
Net realized gain on investments...................................... 1,582,532 6,322,958
Net change in unrealized appreciation on investments.................. (22,383,276) 6,844,389
----------------- ------------------
Net increase (decrease) in net assets resulting from operations..... (14,987,070) 25,164,095
----------------- ------------------
Dividends and distributions to shareholders from:
Net investment income................................................. (5,819,437) (11,996,748)
Net realized gain on investments...................................... (3,193,014) (3,940,210)
----------------- ------------------
Total dividends and distributions................................... (9,012,451) (15,936,958)
----------------- ------------------
Net increase from transactions in shares of beneficial interest (Note
5).................................................................... 5,150,056 28,717,907
----------------- ------------------
Total increase (decrease)........................................... (18,849,465) 37,945,044
NET ASSETS:
Beginning of period..................................................... 246,460,591 208,515,547
----------------- ------------------
END OF PERIOD (including undistributed net investment income of -0-and
$5,763, respectively)................................................. $ 227,611,126 $246,460,591
================= ===================
</TABLE>
See Notes to Financial Statements
<PAGE> 7
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter New York Tax-Free Income
Fund (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 was organized as a Massachusetts business trust on January 17, 1985 and
commenced operations on April 25, 1985.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued for the Fund
by an outside independent pricing service approved by the Trustees. The
pricing service has informed the Fund that in valuing the Fund's portfolio
securities, it uses both a computerized grid matrix of tax-exempt
securities and evaluations by its staff, in each case based on information
concerning market transactions and quotations from dealers which reflect
the bid side of the market each day. The Fund's portfolio securities are
thus valued by reference to a combination of transactions and quotations
for the same or other securities believed to be comparable in quality,
coupon, maturity, type of issue, call provisions, trading characteristics
and other features deemed to be relevant.
B. Accounting for Investments -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined on the identified cost
method. In computing net investment income, the Fund amortizes premiums and
original issue discounts. With respect to market discount on bonds
purchased after April 30, 1993, a portion of any capital gain realized upon
disposition may be recharacterized as taxable investment income. Interest
income is accrued daily.
C. Federal Income Tax Status -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the record date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require 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 its Investment Manager a monthly management fee, calculated and
accrued daily, by applying the annual rate of 0.55% to the portion of daily net
assets not exceeding $500 million and 0.525% to the portion of daily net assets
exceeding $500 million.
<PAGE> 8
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. 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 monthly at an annual rate of 0.75% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestment of dividend 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 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 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 connections with the offering of the Fund's
shares, and the 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 an unreimbursed expense.
Provided that the Plan continues in effect, any cumulative expenses
incurred 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, 1994, it received approximately $159,000 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 cost of
purchases and the proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended June 30, 1994 aggregated
$9,781,910 and $25,132,071, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and the
Distributor, is the Fund's transfer agent. At June 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $11,000.
On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all Trustees of the Fund who will have served as
an independent Trustee 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, 1994, included in Trustees' fees and expenses in the Statement of
Operations amounted to $6,065. At June 30, 1994,
<PAGE> 9
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
the Fund had an accrued pension liability of $45,077 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 months
ended June 30, 1994 For the year ended
(unaudited) December 31, 1993
--------------------------- ---------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold............................. 1,204,063 $ 14,447,807 3,452,052 $ 43,018,205
Reinvestment of dividends and
distributions.................. 486,987 5,655,157 802,145 10,012,352
---------- ------------ ---------- ------------
1,691,050 20,102,964 4,254,197 53,030,557
Repurchased...................... (1,255,641) (14,952,908) (1,950,896) (24,312,650)
---------- ------------ ---------- ------------
Net increase..................... 435,409 $ 5,150,056 2,303,301 $ 28,717,907
========== ============= ========== =============
</TABLE>
<PAGE> 10
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
For the six
months ended For the year ended December 31,
June 30, 1994 --------------------------------------------------------
(unaudited) 1993 1992 1991 1990 1989
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period................ $ 12.50 $ 11.98 $ 11.68 $ 11.00 $ 11.25 $ 10.94
-------------- -------- -------- -------- -------- --------
Net investment income...... 0.29 0.65 0.65 0.68 0.68 0.68
Net realized and unrealized
gain (loss) on
investments.............. (1.04) 0.72 0.34 0.70 (0.25) 0.31
-------------- -------- -------- -------- -------- --------
Total from investment
operations............... (0.75) 1.37 0.99 1.38 0.43 0.99
-------------- -------- -------- -------- -------- --------
Less dividends and
distributions:
Dividends from net
investment income...... (0.29) (0.65) (0.65) (0.68) (0.68) (0.68)
Distributions from net
realized gain on
investments............ (0.16) (0.20) (0.04) (0.02) -0- -0-
-------------- -------- -------- -------- -------- --------
Total dividends and
distributions............ (0.45) (0.85) (0.69) (0.70) (0.68) (0.68)
-------------- -------- -------- -------- -------- --------
Net asset value,
end of period............ $ 11.30 $ 12.50 $ 11.98 $ 11.68 $ 11.00 $ 11.25
============ ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+..... (6.05)%(1) 11.72% 8.70% 12.94% 4.01% 9.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........... $227,611 $246,461 $208,516 $181,714 $158,075 $147,363
Ratio of expenses to
average net assets....... 1.35%(2) 1.27% 1.40% 1.32% 1.37% 1.37%
Ratio of net investment
income to average net
assets................... 4.96%(2) 5.20% 5.48% 6.00% 6.13% 6.09%
Portfolio turnover rate.... 4% 25% 16% 17% 23% 4%
</TABLE>
- ---------------
+ Does not reflect the deduction of sales load.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE> 11
[This Page Intentionally Left Blank]
<PAGE> 12
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
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
NEW YORK
TAX-FREE
INCOME FUND
[PHOTO]
SEMIANNUAL REPORT
JUNE 30, 1994
<PAGE> 13
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The back cover of the Semiannual Report in the printed version contains
a picture of a keyboard, eyeglasses, clock, map and stock certificates.
