<PAGE> 1
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
Fixed-income market conditions have steadily improved since late last year.
Bonds began to rally on signs of slower economic growth in the wake of
progressive tightening of monetary policy by the Federal Reserve Board. The
trend toward lower long-term interest rates reversed the prevailing pattern
during 1994, when rapidly rising rates created a severe bear market in bonds.
Long-term municipal bond yields, as tracked by The Bond Buyer Revenue Bond
Index*, moved from 6.97 percent in December to 6.28 percent at the end of June.
This 69 basis point decline in yield corresponded to a 6 percent price increase
for municipal bonds with 30-year maturities. One-year yields declined 116 basis
points over the past six months and the yield spread (difference between long-
and short-term municipal bond interest rates) widened.
The seasonal demand for municipals in December and January more than offset
the uncertainty caused by the Orange County, California bankruptcy filing.
Tax-exempt bonds outperformed U.S. Treasury bonds through February. The ratio of
the Revenue Bond Index yield to the 30-year U.S. Treasury bond yield moved from
a high of 89 percent in December to 84 percent by the end of February. A
declining ratio means that municipal bond prices have been stronger than U.S.
Treasury prices. Congressional tax reform proposals that advocated the flat tax
concept were partially responsible for municipals underperforming Treasuries
from March through June. By the end of June, the Revenue Bond Index/Treasury
bond yield ratio had risen to 95 percent.
The pace of new-issue underwriting over the first six months of 1995 was 25
percent below the same period last year. Reflecting this trend, New York's
new-issue volume was down 40 percent but continued to be #2 nationally. With
bond maturities and calls for redemption estimated to exceed new issues coming
to market this year, the outstanding supply of municipal securities is expected
to decline. This scarcity of municipal issues should strengthen market
conditions.
PERFORMANCE
Dean Witter New York Tax-Free Income Fund's total return for the first half
of 1995 was 9.00 percent. The Fund's net asset value on June 30, 1995 was $11.52
per share. Tax-free dividends totaling $0.27 per share were distributed during
this period. At the end of June, the Fund had net assets in excess of $213
million. Since its inception on April 24, 1985, the Fund has provided
shareholders with an average annual total return of 8.19 percent.
PORTFOLIO STRUCTURE
The short-term and refunded investment positions at the end of June were 5
and 10 percent of net assets, respectively. Long-term investments were
diversified among 12 specific municipal sectors and 35 separate credits. The
three largest municipal sectors -- industrial development/pollution control,
- ---------------
* The Bond Buyer Revenue Bond Index is an arithmetic average of the yields of 25
selected municipal revenue bonds with 30-year maturities. Credit ratings of
these bonds range from Aa1 to Baa1 by Moody's and AA+ to A- by Standard &
Poor's.
<PAGE> 2
educational facility and water & sewer revenue bonds -- represented 40 percent
of net assets. The average maturity and call protection of the Fund's long-term
holdings was 18 and 7 years, respectively. Since the beginning of the year, the
portfolio has been upgraded by a seven-point increase in the percentage share of
AAA-rated investments. The credit quality ratings of the long-term portfolio are
summarized below:
<TABLE>
<CAPTION>
Moody's or Standard & Poor's Ratings Percent
---------------------------------------------------------------------------- ----
<S> <C>
Aaa or AAA.................................................................. 25%
Aa or AA.................................................................... 12
A or A...................................................................... 43
Baa or BBB.................................................................. 18
Not rated................................................................... 2
----
100%
===
</TABLE>
LOOKING AHEAD
Slower economic growth in 1995 and the extent of the Federal Reserve
Board's previous interest rate moves have improved bond market expectations. The
decreasing supply of municipal bonds as a result of significant bond maturities,
calls for redemption and diminished new-issue supply should be positive for the
market. Tax reduction proposals will continue to receive publicity and cloud the
outlook for municipal bonds. However, to achieve significant reductions in tax
rates, elected officials and the public must address difficult issues such as
the mortgage interest deduction and middle-class tax burden. With long-term
tax-exempt bonds yielding more than 90 percent of the yield on Treasuries, the
market appears to have discounted much of the possibility that a flat tax might
eventually become law.
Among the factors that will determine the Fund's future dividend level are
changes in market yields and the sale of portfolio holdings which are expected
to be redeemed. Even with the move to higher yields that occurred last year, the
Fund cannot replace the yield attributable to many older investments which may
be called or sold in the next few years.
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,
/S/ Charles A. Fiumefreddo
----------------------
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 3
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(in Coupon Maturity
thousands) Rate Date Value
--------- ------- --------- -------------
<C> <S> <C> <C> <C>
NEW YORK EXEMPT+ MUNICIPAL BONDS (95.8%)
GENERAL OBLIGATION (8.8%)
New York City,
$ 3,500 Various Purpose 1973................................... 3.50 % 05/01/01 $ 3,045,980
2,500 Various Purpose 1973................................... 3.50 05/01/03 2,063,925
4,000 1990 Ser D............................................. 6.00 08/01/06 3,923,640
3,000 New York State, Refg Ser 1995 B........................ 5.70 08/15/13 2,907,570
8,800 Puerto Rico, Pub Impr Refg Ser 1987 A.................. 3.00 07/01/06 6,840,328
--------- -------------
21,800 18,781,443
--------- -------------
EDUCATIONAL FACILITIES REVENUE (12.2%)
New York State Dormitory Authority,
2,150 City University Ser U.................................. 6.375 07/01/08 2,157,977
3,000 City University Ser 1993 A............................. 5.75 07/01/09 2,869,410
5,000 City University Ser 1993 F............................. 5.50 07/01/12 4,542,500
3,000 State University Ser 1989 B............................ 0.00 05/15/05 1,633,740
10,000 State University Ser 1993 C............................ 5.375 05/15/13 8,975,700
2,000 State University Ser 1993 A............................ 5.25 05/15/15 1,759,540
4,000 University of Rochester Ser 1987....................... 6.50 07/01/09 4,148,200
--------- -------------
29,150 26,087,067
--------- -------------
ELECTRIC REVENUE (5.4%)
5,000 New York State Power Authority, Ser CC................. 5.00 01/01/14 4,435,400
8,000 Puerto Rico Electric Power Authority, Power Ser O...... 5.00 07/01/12 7,084,400
--------- -------------
13,000 11,519,800
--------- -------------
HOSPITAL REVENUE (4.3%)
9,970 New York State Medical Care Facilities Finance Agency,
--------- Insured Hospital & Nursing Home-FHA Ins Mtge 1993 Ser
B.................................................... 5.50 02/15/22 9,285,460
-------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE
(15.8%)
4,500 New York City Industrial Development Agency, 1990
American Airlines Inc (AMT).......................... 8.00 07/01/20 4,783,320
New York State Energy Research & Development Authority,
3,000 Brooklyn Union Gas Co 1993 Ser B..................... 6.36 04/01/20 3,068,280
11,000 Brooklyn Union Gas Co 1991 Ser (AMT)................. 6.952 07/01/26 11,648,780
4,000 Consolidated Edison Co of New York Inc Ser 1986 A
(AMT).............................................. 7.50 11/15/21 4,176,400
1,000 Long Island Lighting Co 1990 Ser A (AMT)............. 7.15 06/01/20 1,000,590
5,000 New York State Electric & Gas Corp 1987 Ser A (AMT)
(MBIA)............................................. 6.15 07/01/26 4,931,850
4,000 Niagara Mohawk Power Corp 1985 Ser I................. 8.875 11/01/25 4,142,880
--------- -------------
32,500 33,752,100
--------- -------------
</TABLE>
<PAGE> 4
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1995 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(in Coupon Maturity
thousands) Rate Date Value
--------- ------- --------- -------------
<C> <S> <C> <C> <C>
MORTGAGE REVENUE - MULTI-FAMILY (2.8%)
New York City Housing Development Corporation,
$ 2,410 East Midtown Proj-FHA Insured Sec 223................ 6.50 % 11/15/18 $ 2,444,797
1,000 Gen Hsg Ser A (AMBAC)................................ 6.50 05/01/06 1,027,010
2,414 Ruppert Proj-FHA Insured Sec 223..................... 6.50 11/15/18 2,456,940
--------- -------------
5,824 5,928,747
--------- -------------
MORTGAGE REVENUE - SINGLE FAMILY (5.0%)
New York State Mortgage Agency, Homeowner
4,500 Ser 27............................................... 6.90 04/01/15 4,740,750
5,000 Ser 29 A............................................. 5.25 04/01/15 4,541,950
1,400 Ser MM-1 (AMT)....................................... 7.95 10/01/21 1,503,838
--------- -------------
10,900 10,786,538
--------- -------------
NURSING & HEALTH RELATED FACILITIES REVENUE (1.2%)
2,500 New York State Medical Care Facilities Finance
--------- Authority, Long Term Health Care 1992 Ser D (CGIC)... 6.50 11/01/15 2,571,900
-------------
RESOURCE RECOVERY REVENUE (3.8%)
3,000 Hempstead Industrial Development Agency, 1985 American
REF-FUEL Co of Hempstead............................. 7.40 12/01/10 3,092,280
3,000 New York State Environmental Facilities Corporation,
Huntington 1989 Ser A (AMT).......................... 7.50 10/01/12 3,127,920
2,000 Oneida-Herkimer Solid Waste Management Authority, Ser
1992................................................. 6.75 04/01/14 2,011,040
--------- -------------
8,000 8,231,240
--------- -------------
TRANSPORTATION FACILITIES REVENUE (6.0%)
5,000 Port Authority of New York & New Jersey, Cons 100th
Ser.................................................. 5.75 12/15/20 4,744,200
New York State Thruway Authority,
3,500 Ser A................................................ 5.75 01/01/12 3,370,115
2,000 Ser C (FGIC)......................................... 6.00 01/01/25 1,962,040
3,000 Puerto Rico Highway & Transportation Authority, Refg
Ser X................................................ 5.50 07/01/15 2,816,640
--------- -------------
13,500 12,892,995
--------- -------------
WATER & SEWER REVENUE (11.7%)
New York City Municipal Water Finance Authority,
4,000 1990 Ser A........................................... 6.00 06/15/19 3,857,200
4,000 1994 Ser B........................................... 5.375 06/15/07 3,925,560
Suffolk County Industrial Development Agency,
5,000 Southwest Sewer Ser 1994 (FGIC)...................... 6.00 02/01/07 5,255,650
4,000 Southwest Sewer Ser 1994 (FGIC)...................... 6.00 02/01/08 4,179,680
7,000 Puerto Rico Aqueduct & Sewer Authority, Ser 1988 A..... 7.90 07/01/07 7,773,990
--------- -------------
24,000 24,992,080
--------- -------------
</TABLE>
<PAGE> 5
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS June 30, 1995 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(in Coupon Maturity
thousands) Rate Date Value
--------- ------- --------- -------------
<C> <S> <C> <C> <C>
OTHER REVENUE (8.7%)
$ 4,000 Municipal Assistance Corporation for the City of New
York, Ser 57......................................... 7.25 % 07/01/08 $ 4,179,760
5,000 New York Local Government Assistance Corporation, Ser
1994 A............................................... 5.50 04/01/17 4,697,900
10,000 United Nations Development Corporation, 1992 Refg Ser A
Sr Lien.............................................. 6.00 07/01/26 9,646,000
--------- -------------
19,000 18,523,660
--------- -------------
REFUNDED (10.1%)
3,000 New York City Municipal Water Finance Authority, 1991
Ser C................................................ 7.375 06/15/14 3,458,670
5,000 New York Local Government Assistance Corporation, Ser
1991 B............................................... 7.50 04/01/20 5,793,800
3,000 New York State Dormitory Authority, Suffolk County
Judicial Ser 1986 (ETM).............................. 7.375 07/01/16 3,492,810
4,000 New York State Medical Care Facilities Finance Agency,
St Lukes-Roosevelt Hospital Center-FHA Ins Mtge 1989
Ser B................................................ 7.40 02/15/09 4,480,040
3,750 New York State Urban Development Corporation,
Correctional Ser 3................................... 7.375 01/01/18 4,352,700
--------- -------------
18,750 21,578,020
--------- -------------
208,894 TOTAL NEW YORK EXEMPT MUNICIPAL BONDS
--------- (IDENTIFIED COST $196,884,779)................................................ 204,931,050
-------------
SHORT TERM NEW YORK EXEMPT MUNICIPAL
OBLIGATIONS (4.8%)
1,200 New York City Cultural Resources Trust, Solomon R
Guggenheim Foundation Ser 1990 B (Demand 07/03/95)... 4.35*% 12/01/15 1,200,000
9,000 New York State Dormitory Authority, Cornell University
1990 Ser B (Demand 07/03/95)......................... 4.35* 07/01/25 9,000,000
--------- -------------
10,200 TOTAL SHORT TERM NEW YORK EXEMPT MUNICIPAL
--------- OBLIGATIONS (IDENTIFIED COST $10,200,000)..................................... 10,200,000
-------------
$ 219,094 TOTAL INVESTMENTS (IDENTIFIED COST $207,084,779) (A)..............
======== 100.6% 215,131,050
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.................... (0.6) (1,219,993)
----- -------------
NET ASSETS........................................................ 100.0% $ 213,911,057
----- -------------
----- -------------
</TABLE>
- ---------------
<TABLE>
<C> <S>
AMT Alternative Minimum Tax.
ETM Escrow to Maturity.
* Current coupon of variable rate security.
+ Puerto Rico exemption represents 11.5% of net assets.
(a) The aggregate cost for federal income tax purposes is $207,084,779; the aggregate gross unrealized appreciation
is $11,881,677 and the aggregate gross unrealized depreciation is $3,835,406, resulting in net unrealized
appreciation of $8,046,271.
</TABLE>
Bond Insurance:
<TABLE>
<C> <S>
AMBAC AMBAC Indemnity Corporation.
CGIC Capital Guaranty Insurance Company.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
</TABLE>
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, 1995 (unaudited)
- -------------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $207,084,779)........... $ 215,131,050
Cash....................................... 914,962
Receivable for:
Interest................................. 3,758,113
Shares of beneficial interest sold....... 208,175
Prepaid expenses and other assets.......... 26,528
-------------
TOTAL ASSETS....................... 220,038,828
-------------
LIABILITIES:
Payable for:
Investments purchased.................... 5,682,162
Plan of distribution fee................. 133,815
Investment management fee................ 98,131
Shares of beneficial interest
repurchased............................ 62,616
Dividends to shareholders................ 55,427
Accrued expenses and other payables........ 95,620
-------------
TOTAL LIABILITIES.................. 6,127,771
-------------
NET ASSETS:
Paid-in-capital............................ 205,780,303
Net unrealized appreciation................ 8,046,271
Accumulated undistributed net realized
gain..................................... 84,483
-------------
NET ASSETS......................... $ 213,911,057
=============
NET ASSET VALUE PER SHARE,
18,566,538 shares outstanding (unlimited
shares authorized of $.01 par value)..... $11.52
------
------
STATEMENT OF OPERATIONS For the six months
ended June 30, 1995 (unaudited)
- --------------------------------------------
NET INVESTMENT INCOME:
INTEREST INCOME............................ $ 6,634,065
------------
EXPENSES
Plan of distribution fee.................. 797,643
Investment management fee................. 584,938
Transfer agent fees and expenses.......... 49,594
Shareholder reports and notices........... 29,041
Professional fees......................... 28,115
Trustees' fees and expenses............... 12,351
Registration fees......................... 3,303
Other..................................... 8,112
------------
TOTAL EXPENSES.......................... 1,513,097
------------
NET INVESTMENT INCOME................... 5,120,968
------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain......................... 572,258
Net change in unrealized depreciation..... 12,699,211
------------
NET GAIN................................ 13,271,469
------------
NET INCREASE............................ $ 18,392,437
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six
months For the year
ended ended
June 30, 1995 December 31,
(unaudited) 1994
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................. $ 5,120,968 $ 11,294,623
Net realized gain (loss).............................................. 572,258 (487,800)
Net change in unrealized appreciation/depreciation.................... 12,699,211 (29,811,878)
------------- -------------
Net increase (decrease)............................................. 18,392,437 (19,005,055)
------------- -------------
Dividends and distributions to shareholders from:
Net investment income................................................. (5,134,971) (11,286,357)
Net realized gain..................................................... -- (3,193,040)
------------- -------------
Total............................................................... (5,134,971) (14,479,397)
Net decrease from transactions in shares of beneficial interest......... (6,393,398) (5,929,150)
------------- -------------
Total increase (decrease)........................................... 6,864,068 (39,413,602)
NET ASSETS:
Beginning of period..................................................... 207,046,989 246,460,591
------------- -------------
END OF PERIOD (including undistributed net investment income of
$0 and $14,003, respectively)......................................... $ 213,911,057 $ 207,046,989
============= =============
</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 matrix of tax-exempt securities and
evaluations by its staff, in each case based on information concerning
market transactions and quotations from dealers which reflect the bid side
of the market each day. The Fund's portfolio securities are thus valued by
reference to a combination of transactions and quotations for the same or
other securities believed to be comparable in quality, coupon, maturity,
type of issue, call provisions, trading characteristics and other features
deemed to be relevant. Short-term debt securities having a maturity date of
more than sixty days at time of purchase are valued on a mark-to-market
basis until sixty days prior to maturity and thereafter at amortized cost
based on their value on the 61st day. Short-term debt securities having a
maturity date of sixty days or less at the time of purchase are valued at
amortized cost.
B. Accounting for Investments -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined by the identified cost
method. The Fund amortizes premiums and accretes discounts on securities
purchased over the life of the respective securities. Interest income is
accrued daily.
C. Federal Income Tax Status -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the record date. The
amount of dividends and distributions from net investment income 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 management fee, accrued daily and payable
monthly, by applying the following annual rates to the Fund's net assets
determined as of the close of each business day: 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
Fund's inception (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, account executives of Dean Witter Reynolds Inc., an affiliate of
the Investment Manager and Distributor, and other employees and 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 by the Distributor.
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, 1995, it received approximately $170,000 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 proceeds from sales of portfolio securities, excluding short-term
investments, for the six months ended June 30, 1995 aggregated $18,047,930 and
$18,474,854, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At June 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $11,500.
The Fund established an unfunded noncontributory defined benefit pension
plan covering all independent Trustees of the Fund who will have served as
independent Trustees for at 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,
1995 included in Trustees' fees and expenses in the Statement of Operations
amounted to $1,548. At June 30, 1995,
<PAGE> 9
DEAN WITTER NEW YORK TAX-FREE INCOME FUND
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
the Fund had an accrued pension liability of $47,493 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 For the year ended
June 30, 1995 December 31, 1994
----------------------------- -----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold............................ 982,238 $ 11,140,821 1,882,224 $ 21,996,590
Reinvestment of dividends and
distributions................. 254,676 2,913,273 776,114 8,847,709
----------- ------------- ----------- -------------
1,236,914 14,054,094 2,658,338 30,844,299
Repurchased..................... (1,796,236) (20,447,492) (3,244,785) (36,773,449)
----------- ------------- ----------- -------------
Net decrease.................... (559,322) $ (6,393,398) (586,447) $ (5,929,150)
========== ============= ========== =============
</TABLE>
6. FEDERAL INCOME TAX STATUS -- At December 31, 1994, the Fund had a net
capital loss carryover of approximately $488,000 which will be available through
December 31, 2002 to offset future capital gains to the extent provided by
regulations
<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 For the year ended December 31,
ended -------------------------------------------------------------
June 30, 1994 1993 1992 1991 1990
1995 --------- --------- --------- --------- ---------
-----------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period..... $ 10.83 $ 12.50 $ 11.98 $ 11.68 $ 11.00 $ 11.25
----------- --------- --------- --------- --------- ---------
Net investment income.................... 0.27 0.57 0.65 0.65 0.68 0.68
Net realized and unrealized gain
(loss)................................. 0.69 (1.51) 0.72 0.34 0.70 (0.25)
----------- --------- --------- --------- --------- ---------
Total from investment operations......... 0.96 (0.94) 1.37 0.99 1.38 0.43
----------- --------- --------- --------- --------- ---------
Less dividends and distributions from:
Net investment income.................. (0.27) (0.57) (0.65) (0.65) (0.68) (0.68)
Net realized gain...................... -- (0.16) (0.20) (0.04) (0.02) --
----------- --------- --------- --------- --------- ---------
Total dividends and distributions........ (0.27) (0.73) (0.85) (0.69) (0.70) (0.68)
----------- --------- --------- --------- --------- ---------
Net asset value, end of period........... $ 11.52 $ 10.83 $ 12.50 $ 11.98 $ 11.68 $ 11.00
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN+................. 9.00%(1) (7.74)% 11.72% 8.70% 12.94% 4.01%
RATIOS TO AVERAGE NET ASSETS:
Expenses................................. 1.42%(2) 1.40% 1.27% 1.40% 1.32% 1.37%
Net investment income.................... 4.82%(2) 4.96% 5.20% 5.48% 6.00% 6.13%
SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)............................. $ 213,911 $ 207,047 $ 246,461 $ 208,516 $ 181,714 $ 158,075
Portfolio turnover rate.................. 9%(1) 10% 25% 16% 17% 23%
</TABLE>
- ---------------
<TABLE>
<S> <C>
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
See Notes to Financial Statements
<PAGE> 11
(This page has been left blank intentionally.)
<PAGE> 12
TRUSTEES
Jack F. Bennett
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
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
NEW YORK
TAX-FREE
INCOME FUND
[PHOTO]
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE> 13
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The back cover of the Semiannual Report in the printed version contains
a picture of a clock, certificate and glasses.
