<PAGE> 1
DEAN WITTER GOVERNMENT INCOME TRUST Two World Trade Center, New York, New York
10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
After suffering sharp declines during most of 1994 as interest rates rose
significantly, the fixed-income markets began to show signs of life in the
fourth quarter of 1994 and started to rebound during the first quarter of 1995.
By the end of the first quarter, the yield on the 2-year U.S. Treasury note had
declined to 6.78 percent from 7.70 percent on December 31, 1994, while the yield
on the 30-year U.S. Treasury bond fell to 7.43 percent, from 7.88 percent during
the same period.
The bond market rally continued through the second and third quarters of 1995.
Yields on intermediate - and long-term bonds declined to levels last seen before
the Federal Reserve Board began its restrictive monetary policy in February
1994. As of September 30, 1995, the yield on the 30-year U.S. Treasury bond was
6.51 percent. Much of the bond market's strength during 1995 can be attributed
to the continued slowdown in the pace of economic activity, as housing starts,
automobile sales and retail sales have all declined. In addition, despite
today's relatively low unemployment level and the volatility of the commodities
markets, inflation has stabilized below three percent. Recent economic data
supports the perception that the Federal Reserve has successfully orchestrated a
"soft landing," whereby the U.S. economy is growing quickly enough to avoid
recession, yet not so rapidly that inflationary pressure becomes a major issue.
PERFORMANCE AND PORTFOLIO
On September 30, 1995, the Trust's net asset value per share (NAV) was $9.17, up
from $8.69 on September 30, 1994. Based on this increase, and including
reinvestment of income dividends totaling $0.60 per share, the Trust's total
return (based on NAV) for the twelve-month period ended September 30, 1995 was
13.79 percent. Over the same period, the Trust's market price per share on the
New York Stock Exchange (NYSE) rose to $8.25, up from $7.875; on this basis,
total return including reinvestment of income dividends was 12.97 percent. As of
September 30, 1995, the Trust had net assets in excess of $475 million. The
Trust continued to declare income dividends at a rate of $.05 per share per
month.
<PAGE> 2
DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS, continued
During the period under review the Trust's average maturity was gradually
extended, as attractive investment opportunities became available. This enabled
the Trust to continue to provide a competitive level of income as well as
capital appreciation. While this strategy has proven successful in 1995, further
adjustments to the Trust's average maturity will be made as conditions warrant.
On September 30, 1995 the Trust's average maturity was 5.6 years.
On September 30, 1995, 89 percent of the Trust's assets were invested in
mortgage-backed securities issued by the Government National Mortgage
Association (GNMAs), the Federal National Mortgage Association (FNMAs) and the
Federal Home Loan Mortgage Corp. (FHLMCs), 2 percent in U.S. Treasury
securities, and the remaining 9 percent in U.S. agency obligations. For the
balance of 1995, as conditions warrant, income and the proceeds from sales
and/or maturities may be reinvested in mortgage-backed securities, which we
believe continue to offer significant long-term value, an incremental yield
incentive over U.S. Treasury securities of similar maturity and the potential
for capital gains.
LOOKING AHEAD
Going forward, we expect the economy to maintain a slow-to-moderate pace for the
remainder of 1995. Despite a 25 basis point cut in the federal-funds rate in
mid-1995, we believe that the Federal Reserve will want to see a sustained
confirmation of weak economic trends before taking further action. Inflation
should continue to remain subdued, albeit at a modestly higher level than 1994,
at approximately 2.75 percent to 3.25 percent.
We would again like to remind shareholders that the Trustees have approved a
procedure whereby the Trust, when appropriate, may repurchase shares in the open
market or in privately negotiated transactions at a price not above market value
or net asset value, whichever is lower at the time of purchase. In accordance
with this procedure, 4,157,700 shares of the Trust were purchased on the New
York Stock Exchange over the twelve-month period ended September 30, 1995.
We appreciate your support of Dean Witter Government Income Trust and look
forward to continuing to serve your investment objectives.
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO
- --------------------------
CHARLES A. FIUMEFREDDO
Chairman of the Board
<PAGE> 3
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS September 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES (88.4%)
Federal Home Loan Mortgage Corp. (13.0%)
$ 8,171 12/01/18 - 02/01/19............................. 9.50 % $ 8,571,907
29,837 07/01/09 - 08/01/20............................. 10.00 32,158,589
19,359 08/01/14 - 05/01/19............................. 10.50 21,083,460
----------
61,813,956
----------
Federal National Mortgage Assoc. (52.1%)
26,174 12/01/08 - 01/01/09............................. 6.00 25,347,607
59,709 09/15/23 - 12/01/23............................. 6.50 57,970,959
45,379 06/01/23 - 06/01/24............................. 7.00 44,726,766
48,408 01/01/22 - 03/01/23............................. 7.50 48,680,067
38,850 12/01/21 - 10/01/25............................. 8.00 39,724,229
23,532 08/17/17 - 05/01/25............................. 8.50 24,341,300
2,074 09/01/13 - 07/01/23............................. 9.00 2,166,980
4,280 03/20/20 - 01/01/21............................. 9.50 4,524,435
----------
247,482,343
----------
Government National Mortgage Assoc. (23.3%)
15,270 02/15/24 - 08/15/25............................. 7.00 15,088,529
7,945 12/15/22 - 01/15/23............................. 7.50 8,019,235
16,869 11/15/15 - 12/15/21............................. 8.00 17,333,115
47,674 05/15/16 - 11/15/24............................. 8.50 49,655,745
17,843 04/15/17 - 02/15/25............................. 9.00 18,774,089
1,844 08/15/18 - 08/15/20............................. 9.50 1,967,012
----------
110,837,725
----------
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $411,732,111)............................. 420,134,024
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (10.5%)
Federal National Mortgage Assoc. Principal Strip
44,780 12/20/01 - 08/01/04............................. 0.00 40,124,083
U.S. Treasury Note
8,000 09/30/98........................................ 4.75 7,741,250
U.S. Treasury Strip
2,500 05/15/97........................................ 0.00 2,277,837
----------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Identified Cost $51,289,934).............................. 50,143,170
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS September 30, 1995, continued
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENT (0.3%)
REPURCHASE AGREEMENT
$ 1,495 The Bank of New York (dated 09/29/95; proceeds
$1,495,944; collateralized by $1,653,999 U.S.
Treasury Note 6.875% due 07/31/99 valued at
$1,719,266)
(Identified Cost $1,495,274).................... 5.375% $ 1,495,274
----------
TOTAL INVESTMENTS
(Identified Cost $464,517,319) (a).............. 99.2% 471,772,468
OTHER ASSETS IN EXCESS OF LIABILITIES........... 0.8 3,698,665
---- ----------
NET ASSETS...................................... 100.0% $475,471,133
==== ==========
</TABLE>
- ---------------------
(a) The aggregate cost of investments for federal income tax purposes is
$464,517,319; the aggregate gross unrealized appreciation is $10,387,893
and the aggregate gross unrealized depreciation is $3,132,744, resulting
in net unrealized appreciation of $7,255,149.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
ASSETS:
Investments in securities, at value
(identified cost $464,517,319)....................................... $471,772,468
Receivable for:
Investments sold.................................................. 70,313
Interest.......................................................... 3,399,387
Principal paydowns................................................ 1,014,003
Prepaid expenses and other assets..................................... 15,762
----------
TOTAL ASSETS...................................................... 476,271,933
----------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased......................... 368,470
Investment management fee......................................... 282,462
Accrued expenses and other payables................................... 149,868
----------
TOTAL LIABILITIES................................................. 800,800
----------
NET ASSETS:
Paid-in-capital....................................................... 504,003,703
Net unrealized appreciation........................................... 7,255,149
Accumulated undistributed net investment income....................... 304,527
Accumulated net realized loss......................................... (36,092,246)
----------
NET ASSETS........................................................ $475,471,133
==========
NET ASSET VALUE PER SHARE,
51,828,700 shares outstanding (unlimited shares authorized
of $.01 par value)................................................... $9.17
====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 6
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the year ended September 30, 1995
NET INVESTMENT INCOME:
INTEREST INCOME........................................................ $34,362,162
---------
EXPENSES:
Investment management fee.............................................. 2,865,436
Transfer agent fees and expenses....................................... 246,147
Custodian fees......................................................... 70,767
Shareholder reports and notices........................................ 68,478
Professional fees...................................................... 57,951
Registration fees...................................................... 42,246
Trustees' fees and expenses............................................ 28,772
Other.................................................................. 9,134
---------
TOTAL EXPENSES..................................................... 3,388,931
---------
NET INVESTMENT INCOME.............................................. 30,973,231
---------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss.................................................. (2,407,664)
Net change in unrealized depreciation.............................. 25,727,799
---------
NET GAIN........................................................... 23,320,135
---------
NET INCREASE........................................................... $54,293,366
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 7
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR FOR THE YEAR
ENDED ENDED
SEPTEMBER SEPTEMBER
30, 1995 30, 1994
------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................. $ 30,973,231 $ 35,103,869
Net realized loss................................. (2,407,664) (10,233,785)
Net change in unrealized
appreciation/depreciation........................ 25,727,799 (33,692,553)
---------- ----------
NET INCREASE (DECREASE)........................ 54,293,366 (8,822,469)
Dividends from net investment income.............. (32,357,962) (41,688,803)
Net decrease from transactions in shares of
beneficial interest.............................. (33,098,100) (14,514,293)
---------- ----------
TOTAL DECREASE................................ (11,162,696) (65,025,565)
NET ASSETS:
Beginning of period............................... 486,633,829 551,659,394
---------- ----------
END OF PERIOD
(Including undistributed net investment income
of $304,527 and $1,689,258, respectively)..... $475,471,133 $486,633,829
========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 8
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1995
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Government Income Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Trust commenced operations on February 29,
1988.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) a portfolio 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; (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, portfolio securities are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Trustees (valuation of
debt securities for which market quotations are not readily available may be
based upon current market prices of securities which are comparable in coupon,
rating and maturity or an appropriate matrix utilizing similar factors); and (4)
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.
Discounts on securities purchased are accreted over the life of the respective
securities. Interest income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Trust'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 Trust 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
<PAGE> 9
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1995, continued
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 Trust pays its Investment Manager a
management fee, accrued weekly and payable monthly, by applying the annual rate
of 0.60% to the Trust's average weekly net assets.
Under the terms of the Agreement, in addition to managing the Trust's
investments, the Investment Manager maintains certain of the Trust'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 Trust 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 Trust.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales/prepayments of portfolio
securities, excluding short-term investments, for the year ended September 30,
1995 aggregated $121,425,649 and $195,987,483, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Trust's transfer agent. At September 30, 1995, the Trust had transfer agent fees
and expenses payable of approximately $15,000.
The Trust has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Trust who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended September 30, 1995
included in Trustees' fees and expenses in the Statement of Operations amounted
to $7,585. At September 30, 1995, the Trust had an accrued pension liability of
$51,120 which is included in accrued expenses in the Statement of Assets and
Liabilities.
<PAGE> 10
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1995, continued
4. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
PAR
VALUE PAID IN
OF EXCESS OF
SHARES SHARES PAR VALUE
---------- -------- ------------
<S> <C> <C> <C>
Balance, September 30, 1993......................................... 57,818,800 $578,188 $551,037,908
Treasury shares purchased and retired
(weighted average discount 9.93%)*................................ (1,832,400) (18,324) (14,495,969)
---------- -------- ------------
Balance, September 30, 1994......................................... 55,986,400 559,864 536,541,939
Treasury shares purchased and retired
(weighted average discount 9.80%)*................................ (4,157,700) (41,577) (33,056,523)
---------- -------- ------------
Balance, September 30, 1995......................................... 51,828,700 $518,287 $503,485,416
========== ======== ============
</TABLE>
- ---------------------
* The Trustees have voted to retire the shares purchased.
5. DIVIDENDS
On September 26, 1995, the Trust declared the following dividends from net
investment income:
<TABLE>
<CAPTION>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
---------- ------------------- -------------------
<S> <C> <C>
$.05 October 6, 1995 October 20, 1995
$.05 November 10, 1995 November 24, 1995
$.05 December 8, 1995 December 22, 1995
</TABLE>
6. FEDERAL INCOME TAX STATUS
At September 30, 1995, the Trust had a net capital loss carryover of
approximately $33,685,000, to offset future capital gains to the extent provided
by regulations, available through September 30 of the following years:
<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS
- -------------------------------------------------------------
1997 1998 1999 2002 2003 TOTAL
- ------ ------ ----- ------ ------ -------
<S> <C> <C> <C> <C> <C>
$9,742 $5,061 $ 191 $9,053 $9,638 $33,685
====== ====== ===== ====== ====== =======
</TABLE>
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Trust's next
taxable year. The Trust incurred and will elect to defer net capital losses of
approximately $2,408,000 during fiscal 1995. As of September 30, 1995, the Trust
had temporary book/tax differences primarily attributable to post-October
losses.
<PAGE> 11
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1995, continued
7. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
QUARTERS ENDED
----------------------------------------------------------------------------------
9/30/95 6/30/95 3/31/95 12/31/94
----------------- ------------------ ------------------ -----------------
PER PER PER PER
TOTAL* SHARE TOTAL* SHARE TOTAL* SHARE TOTAL* SHARE
------- ------ -------- ------ -------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income.............. $ 8,247 $ 0.16 $ 8,186 $ 0.15 $ 8,970 $ 0.16 $ 8,959 $ 0.17
Net investment income................ 7,487 0.14 7,289 0.14 8,075 0.15 8,122 0.15
Net realized and unrealized gain
(loss)............................. (2,034) (0.02) 19,452 0.37 10,495 0.21 (4,593) (0.06)
</TABLE>
<TABLE>
<CAPTION>
QUARTERS ENDED
-----------------------------------------------------------------------------------
9/30/94 6/30/94 3/31/94 12/31/93
----------------- ------------------ ------------------ ------------------
PER PER PER PER
TOTAL* SHARE TOTAL* SHARE TOTAL* SHARE TOTAL* SHARE
------- ------ -------- ------ -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income.............. $ 9,158 $ 0.16 $ 9,281 $ 0.16 $ 9,698 $ 0.17 $ 10,615 $ 0.18
Net investment income................ 8,336 0.15 8,335 0.15 8,784 0.15 9,649 0.17
Net realized and unrealized loss..... (4,684) (0.07) (12,124) (0.20) (20,191) (0.35) (6,927) (0.12)
</TABLE>
- ---------------------
* Amounts in thousands.
<PAGE> 12
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30
--------------------------------------------------------------
1995* 1994*++ 1993* 1992* 1991*
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period........................................... $ 8.69 $ 9.54 $ 9.72 $ 9.70 $ 9.32
----- ----- ----- ----- -----
Net investment income.......................................... 0.58 0.62 0.81 0.78 0.83
Net realized and unrealized gain (loss)........................ 0.43 (0.77) (0.29) -- 0.39
----- ----- ----- ----- -----
Total from investment operations............................... 1.01 (0.15) 0.52 0.78 1.22
----- ----- ----- ----- -----
Dividends from net investment income........................... (0.60) (0.73) (0.70) (0.76) (0.84)
----- ----- ----- ----- -----
Antidilutive effect of acquiring treasury shares............... .07 .03 -- -- --
----- ----- ----- ----- -----
Net asset value, end of period................................. $ 9.17 $ 8.69 $ 9.54 $ 9.72 $ 9.70
===== ===== ===== ===== =====
Market value, end of period.................................... $ 8.25 $7.875 $9.125 $ 9.25 $9.375
===== ===== ===== ===== =====
TOTAL INVESTMENT RETURN+....................................... 12.97% (5.97)% 6.51% 8.85% 17.28%
RATIOS TO AVERAGE NET ASSETS:
Expenses....................................................... 0.71% 0.70% 0.70% 0.72% 0.72%
Net investment income.......................................... 6.50% 6.73% 8.54% 8.06% 8.81%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........................ $475,471 $486,634 $551,659 $561,749 $561,318
Portfolio turnover rate........................................ 25% 59% 132% 70% 10%
</TABLE>
- ---------------------
* The per share amounts were computed using an average number of shares
outstanding during the period.
+ Total investment return is based upon the current market value on the first
day of each period reported. Dividends are assumed to be reinvested at the
prices obtained under the Trust's reinvestment plan. Total investment
return does not reflect sales charges or brokerage commissions.
++ Restated for comparative purposes.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 13
DEAN WITTER GOVERNMENT INCOME TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER GOVERNMENT INCOME 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 Government Income Trust
(the " Trust") at September 30, 1995, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1995 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
November 8, 1995
<PAGE> 14
(This page has been left blank intentionally.)
<PAGE> 15
(This page has been left blank intentionally.)
<PAGE> 16
TRUSTEES
- -----------------------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire DEAN WITTER
Dr. Manuel H. Johnson GOVERNMENT
Paul Kolton INCOME TRUST
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
- -----------------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Rajesh K. Gupta
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
- -----------------------------------------
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
- -----------------------------------------
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
- -----------------------------------------
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
Annual Report
September 30, 1995
