<PAGE>
DEAN WITTER MANAGED ASSETS TRUST TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
During the six-month period under review, the financial markets moved sharply
higher. Subdued inflation and soft economic growth sparked the bond market as
yields on 30-year U.S. Treasury securities fell from approximately 7.4 percent
in March 1995, to 6.5 percent by the end of September. The U.S. stock market,
benefitting from the decline in yields and strong corporate profits, posted a
return of 18.28 percent over the six-month period ended September 30, 1995 (as
measured by the Standard & Poor's 500 Composite Stock Price Index).
PERFORMANCE AND PORTFOLIO
The asset allocation model, upon which Dean Witter Managed Assets Trust has been
based, viewed the record low dividend yield for the S&P 500 Index (currently 2.4
percent) and the seven tightening moves by the Federal Reserve Board as
potentially very negative and as possible harbingers of a meaningful market
decline. Accordingly, the Fund maintained a very defensive posture throughout
the period and as a result, the Fund did not participate in the markets'
advance. On September 30, 1995, 11.2 percent of the Fund's assets were invested
in equities, 17.4 percent in bonds and 72 percent in money market instruments.
Given its defensive posture, the Fund provided a total return of 3.01 percent
during the six-month period.
LOOKING AHEAD
The Board of Trustees of Dean Witter Managed Assets Trust have recommended that
shareholders approve a reorganization plan whereby the assets of the Fund would
be combined with those of Dean Witter Strategist Fund. Shareholders of Dean
Witter Managed Assets Trust would become shareholders of Dean Witter Strategist
Fund, receiving shares of Dean Witter Strategist Fund equal to the value of
their holdings in Dean Witter Managed Assets Trust. The investment objective and
policies of Dean Witter Strategist Fund will remain as stated in its current
prospectus.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
LETTER TO THE SHAREHOLDERS, CONTINUED
A proxy statement detailing this proposal, including the reasons for the Board's
action and the potential benefits to Dean Witter Managed Assets Trust, was
recently distributed to all shareholders.
We look forward to continuing to serve your investment needs.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (11.2%)
AEROSPACE & DEFENSE (0.1%)
5,500 Allied-Signal, Inc.................. $ 242,687
5,700 Rockwell International Corp......... 269,325
---------------
512,012
---------------
AIRCRAFT & AEROSPACE (0.2%)
16,000 Honeywell, Inc...................... 686,000
---------------
ALUMINUM (0.1%)
4,000 Reynolds Metals Co.................. 231,000
---------------
APPAREL (0.2%)
13,000 VF Corp............................. 663,000
---------------
APPAREL MANUFACTURER (0.2%)
31,000 Liz Claiborne, Inc.................. 782,750
---------------
AUTO PARTS (0.2%)
9,000 TRW, Inc............................ 669,375
---------------
AUTOMOTIVE (0.2%)
11,700 Ford Motor Co....................... 364,163
10,200 Superior Industries International,
Inc................................. 274,125
---------------
638,288
---------------
BANKS - MONEY CENTER (0.2%)
11,000 Chemical Banking Corp............... 669,625
---------------
BANKS - REGIONAL (0.3%)
11,600 Integra Financial Corp.............. 674,250
3,300 Wells Fargo & Co.................... 612,563
---------------
1,286,813
---------------
BEVERAGES - SOFT DRINKS (0.4%)
13,000 Anheuser-Busch Companies, Inc....... 810,875
9,900 PepsiCo Inc......................... 504,900
---------------
1,315,775
---------------
BIOTECHNOLOGY (0.1%)
15,800 Cephalon Inc.*...................... 430,550
---------------
BROKERAGE (0.2%)
7,000 Morgan Stanley Group, Inc........... 672,875
---------------
BUILDING MATERIALS (0.2%)
27,000 Masco Corp.......................... 742,500
---------------
CHEMICALS (0.8%)
10,000 Du Pont (E.I.) de Nemours & Co...... 687,500
8,000 Monsanto Co......................... 806,000
16,000 PPG Industries, Inc................. 744,000
12,000 Rohm & Haas Co...................... 724,500
---------------
2,962,000
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
CHEMICALS - SPECIALTY (0.1%)
7,600 Georgia Gulf Corp................... $ 262,200
---------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (0.2%)
8,700 Cisco Systems, Inc.*................ 600,300
---------------
COMPUTER SOFTWARE (0.1%)
5,800 Microsoft Corp.*.................... 524,900
---------------
COMPUTERS (0.1%)
13,800 Read Rite Corp.*.................... 503,700
---------------
COMPUTERS - PERIPHERAL EQUIPMENT (0.1%)
11,800 Seagate Technology, Inc.*........... 497,075
---------------
COMPUTERS - SYSTEMS (0.4%)
12,500 Apple Computer, Inc................. 465,625
6,900 Hewlett-Packard Co.................. 575,287
5,200 International Business Machines
Corp................................ 490,750
---------------
1,531,662
---------------
CONSUMER PRODUCTS (0.1%)
16,600 RJR Nabisco Holdings Corp........... 537,425
---------------
DRUGS (0.3%)
4,900 Chiron Corp.*....................... 443,450
8,000 Warner-Lambert Co................... 762,000
---------------
1,205,450
---------------
ELECTRICAL EQUIPMENT (0.5%)
10,000 Emerson Electric Co................. 715,000
16,300 General Electric Co................. 1,039,125
---------------
1,754,125
---------------
ELECTRICAL HOUSEHOLD APPLIANCES (0.1%)
21,500 Maytag Corp......................... 376,250
---------------
ELECTRONIC COMPONENTS (0.1%)
8,100 Komag Inc.*......................... 526,500
---------------
ELECTRONICS - SEMICONDUCTORS/ COMPONENTS (0.1%)
9,200 Intel Corp.......................... 553,150
---------------
FOODS (0.4%)
15,000 Campbell Soup Co.................... 753,750
19,000 ConAgra, Inc........................ 752,875
---------------
1,506,625
---------------
FOREST PRODUCTS (0.2%)
27,000 Louisiana-Pacific Corp.............. 651,375
---------------
HARDWARE & TOOLS (0.2%)
18,000 Stanley Works....................... 780,750
---------------
HEALTH CARE - MISCELLANEOUS (0.1%)
24,000 Humana, Inc.*....................... 483,000
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
HEALTH CARE DRUGS (0.4%)
5,900 Lilly (Eli) & Co.................... $ 530,263
15,000 Schering-Plough Corp................ 772,500
---------------
1,302,763
---------------
HEALTH EQUIPMENT & SERVICES (0.2%)
19,000 Baxter International, Inc........... 781,375
---------------
HOUSEHOLD PRODUCTS (0.2%)
6,700 Colgate-Palmolive Co................ 446,388
9,700 Tambrands, Inc...................... 425,587
---------------
871,975
---------------
LABELS (0.2%)
17,000 Avery Dennison Corp................. 714,000
---------------
MACHINERY - DIVERSIFIED (0.2%)
12,000 Johnson Controls, Inc............... 759,000
---------------
MEDICAL PRODUCTS & SUPPLIES (0.2%)
6,600 Cordis Corp.*....................... 556,050
---------------
METALS (0.1%)
3,700 Phelps Dodge Corp................... 231,712
---------------
MOBIL HOME & RECREATION (0.2%)
35,000 Fleetwood Enterprises, Inc.......... 695,625
---------------
OFFICE EQUIPMENT & SUPPLIES (0.3%)
3,100 Alco Standard Corp.................. 262,725
17,000 Pitney Bowes, Inc................... 714,000
---------------
976,725
---------------
OIL DRILLING & SERVICES (0.2%)
17,300 Dresser Industries, Inc............. 413,038
6,300 Schlumberger Ltd. (Netherlands
Antilles)........................... 411,075
---------------
824,113
---------------
OIL INTEGRATED - INTERNATIONAL (0.4%)
8,400 Chevron Corp........................ 408,450
5,800 Exxon Corp.......................... 419,050
4,100 Mobil Corp.......................... 408,463
6,100 Texaco, Inc......................... 394,212
---------------
1,630,175
---------------
PHARMACEUTICALS (0.5%)
5,700 American Home Products Corp......... 483,787
23,200 Merck & Co., Inc.................... 1,299,200
---------------
1,782,987
---------------
PUBLISHING - NEWSPAPER (0.2%)
13,000 Gannett Co., Inc.................... 710,125
---------------
RETAIL (0.1%)
4,000 Dayton-Hudson Corp.................. 303,500
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
RETAIL - DEPARTMENT STORES (0.2%)
16,000 May Department Stores Co............ $ 700,000
---------------
RETAIL - DRUG STORES (0.2%)
25,000 Rite Aid Corp....................... 700,000
---------------
RETAIL - SPECIALTY APPAREL (0.1%)
10,000 Gap, Inc............................ 360,000
---------------
SAVINGS & LOAN ASSOCIATIONS (0.3%)
42,000 California Federal Bank*............ 661,500
35,000 Roosevelt Financial Group, Inc...... 616,875
---------------
1,278,375
---------------
SHOES (0.1%)
3,500 Nike, Inc........................... 388,937
---------------
STEEL & IRON (0.1%)
17,000 Bethlehem Steel Corp.*.............. 240,125
---------------
TRANSPORTATION (0.1%)
5,100 Conrail, Inc........................ 350,625
---------------
WHOLESALE DISTRIBUTOR (0.2%)
24,000 Super Valu Stores, Inc.............. 705,000
---------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $39,097,343)....... 41,420,237
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (6.4%)
BANKS (2.0%)
$ 3,000 Bank of Boston Corp.
6.875% due 07/15/03................. 2,988,660
2,000 Central Fidelity Banks, Inc.
8.15% due 11/15/02.................. 2,136,060
2,000 Shawmut Bank
8.625% due 02/15/05................. 2,225,280
---------------
7,350,000
---------------
CONSUMER PRODUCTS (0.8%)
3,000 RJR Nabisco Holdings Corp.
8.75% due 08/15/05.................. 3,026,040
---------------
FINANCIAL (0.5%)
2,000 Santander Finance Issuances (Cayman
Islands)
6.80% due 07/15/05.................. 1,971,300
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
INDUSTRIALS (3.1%)
$ 2,400 Archer Daniels Midland Co.
8.125% due 06/01/12................. $ 2,650,512
2,500 Hanson Overseas B.V. (Netherlands)
6.75% due 09/15/05.................. 2,487,775
3,000 TCI Communications, Inc.
8.75% due 08/01/15.................. 3,129,990
3,000 Time Warner Entertainment Co.
8.375% due 07/15/33................. 3,050,160
---------------
11,318,437
---------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $23,325,048)....... 23,665,777
---------------
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (11.0%)
2,500 Private Export Funding Corp.
7.95% due 11/01/06.................. 2,726,975
2,000 U.S. Treasury Bond
7.50% due 11/15/24.................. 2,222,187
5,000 U.S. Treasury Note
6.375% due 01/15/99................. 5,057,813
2,000 U.S. Treasury Note
6.50% due 04/30/99.................. 2,033,125
5,000 U.S. Treasury Note
6.875% due 08/31/99................. 5,147,656
8,000 U.S. Treasury Note
7.50% due 11/15/01.................. 8,563,750
5,000 U.S. Treasury Note
5.75% due 08/15/03.................. 4,860,938
9,000 U.S. Treasury Note
7.50% due 02/15/05.................. 9,794,531
---------------
TOTAL U.S. GOVERNMENT & AGENCIES
OBLIGATIONS
(IDENTIFIED COST $40,119,778)....... 40,406,975
---------------
SHORT-TERM INVESTMENTS (72.0%)
COMMERCIAL PAPER (a) (3.1%)
AUTOMOTIVE FINANCE
11,300 Ford Motor Credit Co. 5.74% due
10/04/95 (AMORTIZED COST
$11,294,595)........................ 11,294,595
---------------
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (a) (68.8%)
$ 25,000 Federal Home Loan Banks 5.65% due
10/10/95............................ $ 24,964,688
59,250 Federal Home Loan Mortgage Corp.
5.59% to 6.30% due 10/02/95 to
10/24/95............................ 59,091,320
85,000 Federal National Mortgage
Association 5.64% to 5.65% due
10/02/95 to 10/30/95................ 84,845,610
85,000 U.S. Treasury Bills 5.86% to 6.41%
due 12/14/95........................ 84,097,395
---------------
TOTAL U.S. GOVERNMENT & AGENCIES
OBLIGATIONS
(AMORTIZED COST $252,839,308)....... 252,999,013
REPURCHASE AGREEMENT (0.1%)
264 The Bank of New York 5.375% due
10/02/95 (dated 09/29/95; proceeds
$264,370; collateralized by $278,290
U.S. Treasury Note 7.25% due
05/15/04 valued at $303,837)
(Identified Cost $264,252).......... 264,252
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $264,398,155)...... 264,557,860
---------------
TOTAL INVESTMENTS
(IDENTIFIED COST
$366,940,324) (B)........... 100.6% 370,050,849
LIABILITIES IN EXCESS OF
OTHER ASSETS................ (0.6) (2,377,297)
----- ------------
NET ASSETS.................. 100.0% $367,673,552
----- ------------
----- ------------
<FN>
- ---------------------
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $366,940,324; the
aggregate gross unrealized appreciation is $3,768,988 and the aggregate
gross unrealized depreciation is $658,463, resulting in net unrealized
appreciation of $3,110,525.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $366,940,324)............................ $370,050,849
Receivable for:
Interest................................................ 995,381
Shares of beneficial interest sold...................... 545,995
Dividends............................................... 42,744
Prepaid expenses and other assets........................... 76,271
------------
TOTAL ASSETS........................................... 371,711,240
------------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased............... 3,322,639
Plan of distribution fee................................ 310,963
Investment management fee............................... 186,578
Dividends to shareholders............................... 97,170
Accrued expenses............................................ 120,338
------------
TOTAL LIABILITIES...................................... 4,037,688
------------
NET ASSETS:
Paid-in-capital............................................. 363,824,070
Net unrealized appreciation................................. 3,110,525
Accumulated undistributed net investment income............. 182,781
Accumulated undistributed net realized gain................. 556,176
------------
NET ASSETS............................................. $367,673,552
------------
------------
NET ASSET VALUE PER SHARE,
35,140,104 SHARES OUTSTANDING
(UNLIMITED SHARES AUTHORIZED OF $.01 PAR VALUE)...........
$10.46
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Interest.................................................... $11,611,773
Dividends................................................... 228,193
-----------
TOTAL INCOME........................................... 11,839,966
-----------
EXPENSES
Plan of distribution fee.................................... 2,041,005
Investment management fee................................... 1,224,603
Transfer agent fees and expenses............................ 173,706
Professional fees........................................... 31,150
Shareholder reports and notices............................. 23,485
Custodian fees.............................................. 22,120
Registration fees........................................... 21,964
Trustees' fees and expenses................................. 16,574
Other....................................................... 929
-----------
TOTAL EXPENSES......................................... 3,555,536
-----------
NET INVESTMENT INCOME.................................. 8,284,430
-----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................... 795,119
Net change in unrealized depreciation....................... 3,117,628
-----------
NET GAIN............................................... 3,912,747
-----------
NET INCREASE................................................ $12,197,177
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
SEPTEMBER 30, 1995 ENDED
(UNAUDITED) MARCH 31, 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 8,284,430 $ 11,603,131
Net realized gain........................................... 795,119 10,416,911
Net change in unrealized appreciation/depreciation.......... 3,117,628 (6,113,384)
------------------ --------------
NET INCREASE........................................... 12,197,177 15,906,658
------------------ --------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (7,937,762) (11,871,096)
Net realized gain........................................... -- (16,248,194)
Paid-in-capital............................................. -- (1,017,267)
------------------ --------------
TOTAL.................................................. (7,937,762) (29,136,557)
------------------ --------------
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (58,569,555) 170,397,392
------------------ --------------
TOTAL INCREASE (DECREASE).............................. (54,310,140) 157,167,493
NET ASSETS:
Beginning of period......................................... 421,983,692 264,816,199
------------------ --------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF AND
DISTRIBUTION IN EXCESS OF $182,781 AND $163,887,
RESPECTIVELY)........................................... $367,673,552 $ 421,983,692
------------------ --------------
------------------ --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED)
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. The Fund was organized as a Massachusetts
business trust on October 8, 1987 and commenced operations on June 30, 1988.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York or American Stock Exchange is valued at its latest sale price on that
exchange prior to the time when assets are valued; if there were no sales that
day, the security is valued at the latest bid price (in cases where securities
are traded on more than one exchange, the securities are 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 available bid price prior to the time of valuation; (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 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
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, if available, in determining what it believes is the fair valuation
of the securities valued by such pricing service; and (5) 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.
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily and includes the accretion of discounts on certain short-term securities.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income 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 annual rate
of 0.60% to the daily net assets of the Fund not exceeding $500 million and
0.55% to the daily net assets of the Fund 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, 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 1.0% of the lesser of: (a) the average daily
aggregate
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
gross sales of the Fund's shares since the Fund's inception (not including
reinvestment of dividend or capital gain distributions) less the average daily
aggregate net asset value of the Fund's shares redeemed since the Fund's
inception upon which a contingent deferred sales charge has been imposed or upon
which such charge has been waived; or (b) the Fund's average daily net assets.
Amounts paid under the Plan are paid to the Distributor to compensate it for the
services provided and the expenses borne by it and others in the distribution of
the Fund's shares, including the payment of commissions for sales of the Fund's
shares and incentive compensation to, and expenses of, the account executives of
Dean Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, 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 connection with the offering of the Fund's shares to other than
current shareholders and preparation, printing and distribution of sales
literature and advertising materials. In addition, the Distributor may be
compensated under the Plan for its opportunity costs in advancing such amounts,
which compensation would be in the form of a carrying charge on any unreimbursed
expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred 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 September
30, 1995, it received approximately $713,000 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 September 30, 1995 aggregated
$144,094,574 and $42,347,523, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $43,947,578 and $8,340,543,
respectively.
For the six months ended September 30, 1995, the Fund incurred brokerage
commissions of $13,080 with DWR for portfolio transactions executed on behalf of
the Fund.
<PAGE>
DEAN WITTER MANAGED ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) CONTINUED
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At September 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $31,700.
The Fund has 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
September 30, 1995 included in Trustees' fees and expenses in the Statement of
Operations amounted to $5,624. At September 30, 1995, the Fund had an accrued
pension liability of $56,547 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
SEPTEMBER 30, 1995 FOR THE YEAR ENDED
(unaudited) MARCH 31, 1995
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 21,421,385 $ 223,441,419 41,069,474 $433,827,320
Reinvestment of dividends and distributions...................... 648,664 6,754,679 2,433,359 25,358,358
----------- -------------- ----------- ------------
22,070,049 230,196,098 43,502,833 459,185,678
Repurchased...................................................... (27,668,389) (288,765,653) (27,440,804) (288,788,286)
----------- -------------- ----------- ------------
Net increase/decrease............................................ (5,598,340) $ (58,569,555) 16,062,029 $170,397,392
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
Capital losses incurred after October 31 ("post-October losses") within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
approximately $239,000 during fiscal 1995. As of March 31, 1995, the Fund had
temporary book/tax differences primarily attributable to post-October losses.
7. AGREEMENT AND PLAN OF REORGANIZATION
On August 24, 1995, the Board of Trustees of the Fund approved an Agreement and
Plan of Reorganization by and between the Fund and Dean Witter Strategist Fund
("Strategist") pursuant to which the assets of the Fund would be combined with
those of Strategist and shareholders of the Fund would become shareholders of
Strategist receiving shares of Strategist equal to the value of their holdings
in the Fund (the "Reorganization"). The Reorganization is subject to the
approval of shareholders of the Fund.
<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
SIX
MONTHS
ENDED
SEPTEMBER FOR THE YEAR ENDED MARCH 31
30, 1995 ------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of
period.......... $ 10.36 $ 10.73 $ 11.06 $ 11.36 $ 10.50 $ 9.99
---------- --------- --------- ---------- --------- ---------
Net investment
income.......... 0.22 0.32 0.20 0.28 0.33 0.44
Net realized and
unrealized
gain............ 0.09 0.18 0.31 0.84 0.90 0.52
---------- --------- --------- ---------- --------- ---------
Total from
investment
operations...... 0.31 0.50 0.51 1.12 1.23 0.96
---------- --------- --------- ---------- --------- ---------
Less dividends
and
distributions
from:
Net investment
income........ (0.21) (0.33) (0.21) (0.28) (0.34) (0.44)
Net realized
gain.......... -- (0.51) (0.63) (1.14) (0.03) (0.01)
Paid-in-capital... -- (0.03) -- -- -- --
---------- --------- --------- ---------- --------- ---------
Total dividends
and
distributions... (0.21) (0.87) (0.84) (1.42) (0.37) (0.45)
---------- --------- --------- ---------- --------- ---------
Net asset value,
end of period... $ 10.46 $ 10.36 $ 10.73 $ 11.06 $ 11.36 $ 10.50
---------- --------- --------- ---------- --------- ---------
---------- --------- --------- ---------- --------- ---------
TOTAL INVESTMENT
RETURN+.......... 3.01%(1) 4.83% 4.64% 10.52% 11.85% 10.07%
RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 1.74%(2) 1.77% 1.79% 1.80% 1.70% 1.78%
Net investment
income.......... 4.06%(2) 3.34% 1.86% 2.48% 2.97% 4.34%
SUPPLEMENTAL DATA:
Net assets, end
of period, in
thousands....... $367,674 $421,984 $264,816 $236,990 $219,744 $215,408
Portfolio
turnover rate... 95%(1) 264% 54% 68% 75% 125%
<FN>
- ---------------------
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES DEAN WITTER
MANAGED ASSETS
Jack F. Bennett TRUST
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
Kenton J. Hinchliffe
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 no 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.
[GRAPHIC]
SEMIANNUAL REPORT
SEPTEMBER 30, 1995
