<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - --------------------------------------------------------------------------------
As the fiscal year began in April of 1993, the economy was recovering from
recession, the Federal Reserve Board was pushing down interest rates to keep the
recovery going, long-term bonds were yielding close to 7 percent and U.S.
Treasury bills were yielding approximately 3.25 percent. Stock prices appeared
reasonably valued, but the dividend yield on the Standard & Poor's 500 Index
(S&P 500) was a very low 2.75 percent.
A PORTFOLIO ON THE DEFENSIVE
The Fund started the period with 46 percent of its assets invested in
equities, 15 percent in longer-term bonds and 39 percent in money-market
instruments and cash equivalents. This portfolio structure was designed to
afford some participation in the financial markets, but also to protect assets
should the markets experience a period of declining prices. The Fund made minor
changes to this allocation during the course of the year. In August of 1993,
equity exposure was increased following a period of market
weakness, and in September both equities and
bonds were reduced after significant market
rallies. Finally, after stronger-
than-expected economic growth in the fourth
quarter of 1993, heightened inflationary
fears became apparent. At the same time,
consumer spending increased as mortgage
refinancings generated increased disposable
income. This scenario induced the Federal
Reserve Board to change its stance on
monetary policy by twice raising the
federal-funds rate--the interest rate banks
charge each other for overnight loans--by 25
basis points. These "preemptive" strikes
brought the federal-funds rate from 3.00
percent to 3.50 percent and represented the
first time in several years the central bank
had acted on short-term interest rates. The
markets reacted immediately, with both stock
and bond prices tumbling in the face of sharp
sell-offs. The Fund responded to the
tightening moves by reducing equity exposure
and increasing the allocation to
money-markets. By the end of the fiscal year
on March 31, 1994, 40 percent of net assets
was allocated to equities, 10 percent to
longer-term bonds and 50 percent to money
markets and cash equivalents. This relatively
defensive posture was based on our concerns
about the recent rise in interest rates and
the continued very low yield available from
the S&P 500. (On April 18, following the
close of the period under review, the Federal
Reserve Board, continuing its war on
potential inflationary pressure, again nudged
the federal-funds rate by 25 basis points.)
PERFORMANCE
For the first quarter, the S&P 500 fell
3.79 percent and the 30-year U.S. Treasury
bond lost 7.98 percent. Fortunately, the
Fund was cautiously postured and experienced a modest decline of just 0.84
percent. For the full fiscal year ended March 31, 1994, the Fund produced a
total return of 4.64 percent, versus 1.46 percent for the S&P 500 and 1.91
percent for the 30-year U.S. Treasury bond. The accompanying chart illustrates
the growth
<PAGE>
of a $10,000 investment in the Fund since inception (June 30, 1988) through the
fiscal year ended March 31, 1994, versus the performance of a similar
hypothetical investment in the issues that comprise the S&P 500.
For the fiscal year, the Fund paid quarterly income dividends totaling
approximately $0.21 per share. In addition, the Fund paid approximately $0.12
per share in short-term capital gains and $0.23 per share in long-term capital
gains distributions on June 30, 1993, and $0.07 per share in short-term capital
gains and $0.21 per share in long-term capital gains distributions December 30,
1993. As always, future dividend payments will vary depending on market
conditions and the mix of assets held in the portfolio.
LOOKING AHEAD
Interim corrections notwithstanding, we believe the foundation for long-term
growth in the financial markets is still in place, namely low inflation, strong
earnings growth and moderate interest rate levels. Overall, our outlook for the
financial markets is positive and we are prepared to reinvest the Fund's money-
market position in stocks and bonds when conditions warrant.
We appreciate your support of Dean Witter Managed Assets Trust and look
forward to continuing to serve your investment needs.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1994
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- - ----------- -------------
<C> <S> <C>
COMMON STOCKS (40.0%)
AIRCRAFT & AEROSPACE (2.3%)
40,000 Boeing Co...................................................................... $ 1,795,000
25,200 Lockheed Corp.................................................................. 1,619,100
23,000 Rockwell International Corp.................................................... 914,250
27,700 United Technologies Corp....................................................... 1,720,862
-------------
6,049,212
-------------
ALUMINUM (1.3%)
23,700 Aluminum Co. of America........................................................ 1,697,512
35,500 Reynolds Metals Co............................................................. 1,628,563
-------------
3,326,075
-------------
AUTOMOBILES (1.2%)
28,100 Ford Motor Co.................................................................. 1,650,875
27,400 General Motors Corp............................................................ 1,479,600
-------------
3,130,475
-------------
BANKS (2.1%)
50,000 BankAmerica Corp............................................................... 1,968,750
63,000 Keycorp........................................................................ 1,890,000
36,800 NationsBank Corp............................................................... 1,683,600
-------------
5,542,350
-------------
BEVERAGES (0.8%)
38,000 Anheuser-Busch Cos., Inc....................................................... 2,014,000
-------------
CHEMICALS (3.0%)
30,500 Dow Chemical Co................................................................ 1,833,813
38,000 duPont (E.I.) de Nemours & Co.................................................. 2,014,000
9,250 Eastman Chemical Co............................................................ 372,312
46,900 Grace (W.R.) & Co.............................................................. 1,934,625
24,800 PPG Industries, Inc............................................................ 1,844,500
-------------
7,999,250
-------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (0.5%)
15,000 Reuters Holdings PLC (ADR)+.................................................... 1,291,875
-------------
COMPUTERS (1.3%)
21,000 Hewlett-Packard Co............................................................. 1,724,625
31,100 International Business Machines Corp........................................... 1,694,950
-------------
3,419,575
-------------
CONGLOMERATES (1.4%)
18,300 Minnesota Mining & Manufacturing Co............................................ 1,813,988
33,400 Tenneco, Inc................................................................... 1,761,850
-------------
3,575,838
-------------
CONSUMER PRODUCTS (0.6%)
32,000 Kimberly-Clark Corp............................................................ 1,692,000
-------------
<PAGE>
</TABLE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1994 (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- - ----------- -------------
<C> <S> <C>
DRUGS & HEALTH CARE (3.6%)
78,200 Abbott Laboratories............................................................ $ 2,082,075
39,600 Bristol-Myers Squibb Co........................................................ 2,044,350
30,500 Schering-Plough Corp........................................................... 1,715,625
73,500 SmithKline Beecham PLC (ADR)+.................................................. 1,837,500
29,300 Warner-Lambert Co.............................................................. 1,812,937
-------------
9,492,487
-------------
ELECTRIC - EQUIPMENT (1.3%)
29,600 Emerson Electric Co............................................................ 1,757,500
150,000 Westinghouse Electric Corp..................................................... 1,800,000
-------------
3,557,500
-------------
FOODS (1.7%)
58,000 Conagra, Inc................................................................... 1,551,500
26,300 CPC International, Inc......................................................... 1,245,962
28,000 Quaker Oats Co................................................................. 1,753,500
-------------
4,550,962
-------------
FOREST & PAPER PRODUCTS (1.3%)
70,500 Boise Cascade Corp............................................................. 1,603,875
45,000 Weyerhaeuser Co................................................................ 1,946,250
-------------
3,550,125
-------------
HOUSEHOLD APPLIANCES (0.6%)
27,600 Whirlpool Corp................................................................. 1,676,700
-------------
INSURANCE (1.4%)
26,000 Chubb Corp..................................................................... 1,901,250
30,000 CIGNA Corp..................................................................... 1,781,250
-------------
3,682,500
-------------
MACHINERY - AGRICULTURAL (0.6%)
20,000 Deere & Co..................................................................... 1,680,000
-------------
METALS & BASIC MATERIALS (0.4%)
20,000 Phelps Dodge Corp.............................................................. 1,045,000
-------------
NATURAL GAS (1.4%)
60,000 Enron Corp..................................................................... 1,830,000
76,200 Williams Cos., Inc............................................................. 1,828,800
-------------
3,658,800
-------------
OFFICE EQUIPMENT (0.7%)
18,300 Xerox Corp..................................................................... 1,747,650
-------------
OIL RELATED (3.4%)
34,000 Amoco Corp..................................................................... 1,806,250
20,900 Atlantic Richfield Co.......................................................... 1,985,500
23,900 British Petroleum Co., PLC (ADR)+.............................................. 1,466,863
25,000 Mobil Corp..................................................................... 1,859,375
20,000 Royal Dutch Petroleum Co....................................................... 1,987,500
-------------
9,105,488
-------------
<PAGE>
</TABLE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1994 (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- - ----------- -------------
<C> <S> <C>
PHOTOGRAPHY (0.6%)
37,000 Eastman Kodak Co............................................................... $ 1,641,875
-------------
RAILROADS (2.2%)
29,900 Burlington Northern, Inc....................................................... 1,779,050
25,000 CSX Corp....................................................................... 2,050,000
35,000 Union Pacific Corp............................................................. 1,986,250
-------------
5,815,300
-------------
RECREATION (0.7%)
85,000 Brunswick Corp................................................................. 1,795,625
-------------
RETAIL (2.3%)
22,000 Dayton-Hudson Corp............................................................. 1,606,000
59,500 Great Atlantic & Pacific Tea Co................................................ 1,457,750
93,200 K-Mart Corp.................................................................... 1,689,250
70,000 Rite Aid Corp.................................................................. 1,330,000
-------------
6,083,000
-------------
TELECOMMUNICATIONS (2.6%)
33,000 American Telephone & Telegraph Co.............................................. 1,691,250
59,700 GTE Corp....................................................................... 1,850,700
40,000 Sprint Corp.................................................................... 1,370,000
49,200 U.S. West, Inc................................................................. 2,004,900
-------------
6,916,850
-------------
UTILITIES - ELECTRIC (0.7%)
54,300 FPL Group, Inc................................................................. 1,798,688
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST $99,631,422).............................. 105,839,200
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE
- - ----------- ---------- ---------
<C> <S> <C> <C> <C>
CORPORATE BONDS (4.5%)
AIRCRAFT & AEROSPACE (0.6%)
$ 1,500 Delta Airlines, Inc............................................ 9.75% 5/15/21 1,584,420
-------------
COMPUTERS (0.4%)
1,000 International Business Machines Corp........................... 7.50 6/15/13 951,200
-------------
FINANCIAL SERVICES (0.3%)
1,000 Aetna Life & Casualty Co....................................... 7.25 8/15/23 897,980
-------------
FOREIGN GOVERNMENT & AGENCY (0.8%)
1,250 Italy Republic................................................. 6.875 9/27/23 1,087,825
1,000 Quebec Province CD............................................. 7.125 2/ 9/24 885,670
-------------
1,973,495
-------------
INDUSTRIALS (0.7%)
1,000 Columbia Health................................................ 7.50 12/15/23 917,160
1,000 Occidental Petroleum........................................... 8.75 1/15/23 1,013,520
-------------
1,930,680
-------------
<PAGE>
</TABLE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1994 (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- - ----------- ---------- --------- -------------
<C> <S> <C> <C> <C>
RETAIL (0.4%)
$ 1,000 K-Mart Corp.................................................... 7.95% 2/ 1/23 $ 970,190
-------------
TAXABLE MUNICIPAL BONDS (0.3%)
1,000 Stanford University............................................ 6.875 2/ 1/24 903,750
-------------
UTILITIES - ELECTRIC (1.0%)
1,000 Niagara Mohawk................................................. 7.875 4/ 1/24 951,130
1,500 Southern California Edison Co.................................. 8.875 5/ 1/23 1,634,685
-------------
2,585,815
-------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $12,449,457)................................... 11,797,530
-------------
U.S. GOVERNMENT AGENCIES AND OBLIGATIONS (5.6%)
139 Government National Mortgage Association....................... 10.00 12/15/18 151,137
1,000 Private Export Funding Corp.................................... 8.75 6/30/03 1,113,750
1,000 U.S. Treasury Bond............................................. 7.125 2/15/23 989,062
3,000 U.S. Treasury Bond............................................. 7.25 8/15/22 3,005,625
8,750 U.S. Treasury Bond............................................. 8.125 8/15/19 9,597,656
-------------
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATIONS
(IDENTIFIED COST $14,306,800)....................................................... 14,857,230
-------------
SHORT-TERM INVESTMENTS (51.0%)
COMMERCIAL PAPER (A) (24.4%)
AUTOMOBILES - FINANCE (3.8%)
10,000 Ford Motor Credit Co........................................... 3.52 4/ 4/94 9,997,067
-------------
FINANCE - DIVERSIFIED (13.0%)
12,000 American Express Credit Corp................................... 3.60 4/18/94 11,979,600
13,000 American General Finance Corp.................................. 3.55 4/ 7/94 12,992,308
9,500 General Electric Capital Corp.................................. 3.55 4/ 7/94 9,494,379
-------------
34,466,287
-------------
FINANCE - ENERGY (7.6%)
13,000 Chevron Oil Financial Co....................................... 3.55 4/12/94 12,985,899
7,200 Exxon Credit Corp.............................................. 3.25 4/ 4/94 7,198,050
-------------
20,183,949
-------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $64,647,303)................................... 64,647,303
-------------
U.S. GOVERNMENT AGENCIES (A) (26.4%)
23,000 Federal Home Loan Bank......................................... 3.47 4/29/94 22,937,926
30,000 Federal National Mortgage Association.......................... 3.35 4/14/94 29,962,083
17,000 Student Loan Marketing Association............................. 3.42 4/ 4/94 16,995,155
-------------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $69,895,164)........................... 69,895,164
-------------
</TABLE>
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS MARCH 31, 1994 (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- - ----------- -------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.2%)
$ 599 The Bank of New York 3.50% due 4/1/94 (dated 3/31/94; proceeds $599,147;
collateralized by $629,402 U.S. Treasury Note 6.25% due 2/15/03 valued at
$611,071) (Identified Cost $599,089)......................................... $ 599,089
-------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $135,141,556).................... 135,141,556
-------------
TOTAL INVESTMENTS (IDENTIFIED COST $261,529,235)(B)..................... 101.1% 267,635,516
LIABILITIES IN EXCESS OF OTHER ASSETS................................... (1.1) (2,819,317)
---------- -------------
NET ASSETS.............................................................. 100.0% $ 264,816,199
---------- -------------
---------- -------------
<FN>
- - ----------------
+ AMERICAN DEPOSITORY RECEIPT.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN HAVE
BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS
$263,451,698; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $9,409,251 AND
THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $5,225,433, RESULTING IN NET
UNREALIZED APPRECIATION OF $4,183,818.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
1994 FEDERAL INCOME TAX NOTICE (UNAUDITED)
During the year ended March 31, 1994, the Fund paid to shareholders $.4355 per
share from long-term capital gains. For such period 47.38% of the income
dividends qualified for the dividends received deduction available to
corporations.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1994
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $261,529,235) (Note
1)...................................... $ 267,635,516
Receivables for:
Shares of beneficial interest sold...... 1,271,577
Investments sold........................ 924,763
Interest................................ 404,382
Dividends............................... 322,599
Prepaid expenses.......................... 43,512
-------------
TOTAL ASSETS...................... 270,602,349
-------------
LIABILITIES:
Payables for:
Investments purchased................... 4,657,512
Shares of beneficial interest
repurchased........................... 600,628
Plan of distribution fee (Note 3)....... 228,995
Investment management fee (Note 2)...... 135,304
Dividends to shareholders............... 28,180
Accrued expenses (Note 4)................. 135,531
-------------
TOTAL LIABILITIES................. 5,786,150
-------------
NET ASSETS:
Paid in capital........................... 253,013,500
Accumulated undistributed net investment
income.................................. 104,078
Accumulated undistributed net realized
gain on investments..................... 5,592,340
Net unrealized appreciation on
investments............................. 6,106,281
-------------
NET ASSETS........................ $ 264,816,199
-------------
-------------
NET ASSET VALUE PER SHARE, 24,676,415
shares outstanding (unlimited authorized
shares of $.01 par value)............... $10.73
-------------
-------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1994
<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Interest............................... $ 5,233,908
Dividends (net of $37,304 foreign
withholding tax)..................... 3,828,559
------------
TOTAL INCOME....................... 9,062,467
------------
EXPENSES
Plan of distribution fee (Note 3)...... 2,441,619
Investment management fee (Note 2)..... 1,490,674
Transfer agent fees and expenses (Note
4)................................... 267,584
Shareholder reports and notices........ 64,434
Registration fees...................... 55,449
Professional fees...................... 45,787
Trustees' fees and expenses (Note 4)... 32,303
Custodian fees......................... 31,112
Organizational expenses (Note 1)....... 5,930
Other.................................. 9,089
------------
TOTAL EXPENSES..................... 4,443,981
------------
NET INVESTMENT INCOME............ 4,618,486
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain on investments....... 13,924,046
Net change in unrealized appreciation
on investments....................... (7,776,179)
------------
NET GAIN ON INVESTMENTS............ 6,147,867
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $ 10,766,353
------------
------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MARCH 31, 1994 MARCH 31, 1993
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................. $ 4,618,486 $ 5,657,547
Net realized gain on investments...................................... 13,924,046 22,588,866
Net change in unrealized appreciation on investments.................. (7,776,179) (5,433,459)
------------------ ------------------
Net increase in net assets resulting from operations.............. 10,766,353 22,812,954
------------------ ------------------
Dividends and distributions to shareholders from:
Net investment income................................................. (4,624,567) (5,549,041)
Net realized gain on investments...................................... (13,835,091) (22,555,635)
------------------ ------------------
Total dividends and distributions................................. (18,459,658) (28,104,676)
------------------ ------------------
Net increase from transactions in shares of beneficial interest (Note
5)..................................................................... 35,519,696 22,537,246
------------------ ------------------
Total increase.................................................... 27,826,391 17,245,524
NET ASSETS:
Beginning of period..................................................... 236,989,808 219,744,284
------------------ ------------------
END OF PERIOD (including undistributed net investment income of $104,078
and $110,159, respectively)............................................ $ 264,816,199 $ 236,989,808
------------------ ------------------
------------------ ------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
1. Organization and Accounting Policies--Dean Witter Managed Assets Trust (the
"Fund") is registered under the Investment Company Act of 1940, as amended (the
"Act"), as a non-diversified, open-end management investment company. It was
organized on October 8, 1987 as a Massachusetts business trust and the Fund
commenced operations on June 30, 1988.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS--(1) an equity portfolio security listed or
traded on the New York or American Stock Exchange is valued at its latest
sale price taken at 4:00 p.m. New York time on that exchange; if there were
no sales that day, the security is valued at the latest bid price (in cases
where a security is traded on more than one exchange, the security is valued
on the exchange designated as the primary market by the Trustees); (2) all
other portfolio securities for which over-the-counter market quotations are
readily available are valued at the latest bid price; (3) when market
quotations are not readily available, including circumstances under which it
is determined by the Investment Manager that sale and bid prices are not
reflective of a security's market value, portfolio securities are valued at
their fair market 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); (4) certain of the Fund's portfolio securities may be valued by an
outside pricing service approved by the Fund's Trustees. The pricing service
utilizes a matrix system incorporating security quality, maturity and coupon
as the evaluation model parameters, and/or research and evaluations by its
staff, including review of broker-dealer market price quotations, in
determining what it believes is the fair valuation of the portfolio
securities valued by such pricing service; (5) the fair market value of
short-term debt securities which mature at a date less than sixty days
subsequent to the valuation date will be determined on an amortized cost or
amortized value basis; other short-term debt securities will be valued on a
mark-to-market basis until such time as they reach a maturity of 60 days,
whereupon they will be valued at amortized value unless the Trustees
determine such does not reflect the securities' fair value, in which case
these securities will be valued at their fair value as determined by the
Trustees; and (6) the value of other assets will be determined in good faith
at fair value under procedures established by and under the general
supervision of the Fund's Trustees.
B. ACCOUNTING FOR INVESTMENTS--Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing net
investment income, the Fund does not amortize premiums or accrue discounts
on fixed income securities in the portfolio, except those original issue
discounts for which amortization is required for federal income tax
purposes. Additionally, with respect to market discount, a portion of any
capital gain realized upon disposition may be recharacterized as investment
income. Realized gains and losses on security transactions are determined on
the identified cost method. Dividend income is recorded on the ex-dividend
date. 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.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassifications.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
E. ORGANIZATIONAL EXPENSES--The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately $120,000.
The Fund reimbursed the Investment Manager for these costs. These expenses
are being deferred and amortized by the Fund on the straight line basis over
a period not to exceed five years from the commencement of operations. As of
June 30, 1993, organizational expenses were fully amortized.
F. REPURCHASE AGREEMENTS--The Fund's custodian takes possession on behalf of
the Fund of the collateral pledged for investments in repurchase agreements.
It is the policy of the Fund to value the underlying collateral daily on a
mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Fund has the
right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation.
2. Investment Management Agreement--Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, accrued daily
and payable monthly, at an annual rate of 0.60% of the Fund's daily net assets
not exceeding $500 million and 0.55% of the Fund's daily net assets exceeding
$500 million.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes office space and facilities, equipment, clerical,
bookkeeping and certain legal services, and pays the salaries of all personnel,
including officers of the Fund who are employees of the Investment Manager. The
Investment Manager also bears the cost of telephone services, heat, light, power
and other utilities provided to the Fund.
3. Plan of Distribution--Shares of 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 under which the Fund pays the Distributor compensation accrued
daily and payable monthly at the annual rate of 1.0% of the lesser of: (a) the
average daily aggregate gross sales of the Fund's shares since the inception of
the Fund (not including reinvestments of dividends or capital gains
distributions), less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services 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
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
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; 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 March 31,
1994, it received approximately $338,000 in contingent deferred sales charges
from 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 year ended March 31, 1994, aggregated
$80,522,001 and $98,716,589, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $11,638,374 and
$16,183,003, respectively. For the same period, the Fund paid brokerage
commissions of $33,360 to Dean Witter Reynolds Inc. for transactions executed on
behalf of the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At March 31, 1994, the Fund had
transfer agent fees and expenses payable of approximately $29,000.
On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Fund who will have
served as 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 year ended March 31, 1994, included in Trustees' fees and expenses in the
Statement of Operations, amounted to $11,216. At March 31, 1994, the Fund had an
accrued pension liability of $41,198 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 YEAR ENDED MARCH FOR THE YEAR ENDED
31, 1994 MARCH 31, 1993
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................................... 8,078,807 $ 89,201,126 4,818,089 $ 54,069,865
Reinvestment of dividends and
distributions............................ 1,504,075 16,299,642 2,314,449 25,091,150
---------- ------------ ---------- ------------
9,582,882 105,500,768 7,132,538 79,161,015
Repurchased............................... (6,337,340) (69,981,072) (5,051,952) (56,623,769)
---------- ------------ ---------- ------------
Net increase.............................. 3,245,542 $ 35,519,696 2,080,586 $ 22,537,246
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
6. Federal Income Tax Status--The Fund had temporary book/tax differences which
were primarily attributable to realized capital loss deferrals on wash sales.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE
PERIOD
JUNE 30,
1988*
FOR THE YEAR ENDED MARCH 31, THROUGH
----------------------------------------------------------------- MARCH 31,
1994 1993 1992 1991 1990 1989
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period............................ $ 11.06 $ 11.36 $ 10.50 $ 9.99 $ 10.03 $ 10.00
--------- --------- --------- --------- --------- ---------
Net investment income............ 0.20 0.28 0.33 0.44 0.69 0.43
Net realized and unrealized gain
on investments.................. 0.31 0.84 0.90 0.52 0.10 -0-
--------- --------- --------- --------- --------- ---------
Total from investment operations... 0.51 1.12 1.23 0.96 0.79 0.43
--------- --------- --------- --------- --------- ---------
Less dividends and distributions:
Dividends from net investment
income.......................... (0.21) (0.28) (0.34) (0.44) (0.71) (0.40)
Distributions from net realized
gains on investments............ (0.63) (1.14) (0.03) (0.01) (0.12) -0-
--------- --------- --------- --------- --------- ---------
Total dividends and
distributions..................... (0.84) (1.42) (0.37) (0.45) (0.83) (0.40)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period..... $ 10.73 $ 11.06 $ 11.36 $ 10.50 $ 9.99 $ 10.03
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+............. 4.64% 10.52% 11.85% 10.07% 8.01% 4.40%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $264,816 $236,990 $219,744 $215,408 $279,494 $262,570
Ratio of expenses to average net
assets............................ 1.79% 1.80% 1.70% 1.78% 1.77% 1.77%(2)
Ratio of net investment income to
average net assets................ 1.86% 2.48% 2.97% 4.34% 6.76% 6.73%(2)
Portfolio turnover rate............ 54% 68% 75% 125% 320% 178%
<FN>
- - -------------
* COMMENCEMENT OF OPERATIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- - --------------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter Managed Assets 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 Managed Assets Trust
(the "Fund") at March 31, 1994, 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 five years in the period
then ended and for the period June 30, 1988 (commencement of operations) through
March 31, 1989, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities owned at
March 31, 1994 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
New York, New York
May 6, 1994
<PAGE>
T R U S T E E S
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
O F F I C E R S
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Kenton J. Hinchliffe
Vice President
Thomas F. Caloia
Treasurer
T R A N S F E R A G E N T
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
L E G A L C O U N S E L
Sheldon Curtis
Two World Trade Center
New York, New York 10048
I N D E P E N D E N T A C C O U N T A N T S
Price Waterhouse
1177 Avenue of the Americas
New York, New York 10036
I N V E S T M E N T M A N A G E R
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
MANAGED ASSETS
TRUST
[PHOTO]
ANNUAL REPORT
MARCH 31, 1994
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
GROWTH OF $10,000
($ IN THOUSANDS)
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
<S> <C> <C>
June 30, 1988 $10,000 $10,000
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1989 $10,440 $11,072
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1990 $11,276 $13,201
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1991 $12,411 $15,103
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1992 $13,881 $16,767
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1993 $15,341 $19,317
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
March 31, 1994 $15,953 (3) $19,599
- - -------------------------------------------------------------------
- - -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
- - -----------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
Non-Standard 4.64 (1) 8.99 (1) 8.58 (1)
- - -----------------------------------------------------------------
Standard (-CDSC) -0.21 (2) 8.70 (2) 8.46 (2)
- - -----------------------------------------------------------------
- - -----------------------------------------------------------------
--------------------------------------
--------------------------------------
_______ Fund _______ S&P 500 (4)
--------------------------------------
--------------------------------------
Past performance is not predictive of future returns.
<FN>
- - ---------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%,
5 years-2%, since inception-1%). See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value after the deduction of a 1% CDSC, assuming a complete
redemption on March 31, 1994.
(4) The S&P 500 is a broad-based index, the total return of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
</TABLE>
