<PAGE> 1
DEAN WITTER GOVERNMENT INCOME TRUST Two World Trade Center, New York,
New York 10048
LETTER TO THE SHAREHOLDERS March 31, 1996
DEAR SHAREHOLDER:
During the six-months ended March 31, 1996, interest rates on short- and
intermediate-term U.S. Treasury securities were highly volatile. In late 1995,
interest rates declined to levels last seen before the Federal Reserve Board
raised interest rates in February 1994. Subsequently, interest rates rose
sharply during the first three months of 1996, retracing all the decline of the
previous three months. Much of the U.S. Treasury market's strength at first was
attributed to economic data supporting the perception that the economy had
indeed slowed, but by early 1996, the market's perception had changed. The
combined effect of the government shut-down and the severe winter weather of
January 1996 created pent-up demand by the consumer sector. Reinvigorated by low
mortgage rates, rebate-incentives by the auto dealers and extraordinary sale
prices at local retailers, retail sales and housing starts soared. Meanwhile,
the unemployment rate declined, signaling a stronger-than-anticipated rebounding
economy and possibly a surge in inflation. On March 31, 1996, the 5-year U.S.
Treasury note was yielding 6.09 percent compared to 6.02 percent six-months ago.
PERFORMANCE AND PORTFOLIO
On March 31, 1996, the Government Income Trust's net asset value per share (NAV)
was $9.15, down from $9.17 on September 30, 1995. Based on this change, and
including reinvestment of dividends totaling $0.30 per share, the Trust's total
return (based on NAV) for the six-month period ended March 31, 1996, was 3.40
percent. Based on its market price of $8.125 per share on the New York Stock
Exchange, the Trust's total return was 2.06 percent during the same period. As
of March 31, 1996, the Trust had net assets in excess of $462 million. The Trust
continued to declare income dividends at a rate of $0.05 per share per month.
During the period under review the Trust's average maturity was extended
slightly as attractive investment opportunities became available. This enabled
the Trust to continue to provide a competitive level of current income as well
as capital appreciation. Further adjustments to the
<PAGE> 2
DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS March 31, 1996, continued
Trust's average maturity will be made as conditions warrant. On March 31, 1996
the Trust's average maturity was approximately 6.0 years.
At the end of the period under review, 86 percent of the Fund'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), 4 percent in U.S. Treasury
securities, 9 percent in U.S. agency obligations and the remaining 1 percent in
cash equivalents. For the balance of 1996, proceeds from sales and/or maturities
may be reinvested into mortgage-backed securities. We believe these securities
continue to offer not only significant long-term value with an incremental yield
incentive over U.S. Treasury securities of similar maturity, but also the
potential for competitive total returns.
On March 29, 1996, the Board of Trustees declared a monthly income dividend of
$0.05 per share, payable April 19, 1996, to shareholders of record on April 4,
1996. In addition, the Trust has declared the following dividends:
<TABLE>
<CAPTION>
AMOUNT RECORD DATE PAYABLE DATE
- ------- ------------ -------------
<S> <C> <C>
$0.05 May 3, 1996 May 17, 1996
$0.05 June 7, 1996 June 21, 1996
</TABLE>
LOOKING AHEAD
We expect the U.S. economy to maintain a slow-to-moderate pace during 1996, and
believe that the Federal Reserve Board will continue to make modest adjustments
to monetary policy if evidence of a weak economy re-emerges. Inflation should
continue to remain subdued albeit at a slightly higher level in the year ahead.
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.
On April 17, 1996, the Trustees of Government Income Trust voted to recommend to
the shareholders of the Trust a proposal to convert the Trust to an open-end
investment company. Proxy materials will be mailed shortly to shareholders
describing the proposal in fuller detail, with a shareholder meeting scheduled
on or about August 15, 1996. Approval of the proposal will require the vote of
80 percent of the Trust's outstanding shares.
<PAGE> 3
DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS March 31, 1996, continued
We appreciate your support of Dean Witter Government Income Trust and look
forward to continuing to serve your investment needs.
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO
CHARLES A. FIUMEFREDDO
Chairman of the Board
<PAGE> 4
DEAN WITTER GOVERNMENT INCOME TRUST
RESULTS OF ANNUAL MEETING (unaudited)
* * *
On December 20, 1995, an annual meeting of the shareholders of the Fund was held
for the purpose of voting on three separate matters, the results of which were
as follows:
(1) ELECTION OF TRUSTEES BY ALL SHAREHOLDERS:
<TABLE>
<S> <C>
Edwin J. Garn
For................................................................ 40,408,894
Withheld........................................................... 408,439
John R. Haire
For................................................................ 40,362,998
Withheld........................................................... 454,335
Michael E. Nugent
For................................................................ 40,417,385
Withheld........................................................... 399,948
Philip J. Purcell
For................................................................ 40,400,510
Withheld........................................................... 416,823
</TABLE>
The following Trustees were not standing for reelection at this meeting:
Jack F. Bennett, Michael Bozic, Charles A. Fiumefreddo, Dr. Manuel H. Johnson,
Paul Kolton and John L. Schroeder.
(2) CONTINUANCE OF CURRENTLY EFFECTIVE INVESTMENT MANAGEMENT AGREEMENT
WITH DEAN WITTER INTERCAPITAL INC.:
<TABLE>
<S> <C>
For................................................................ 39,793,599
Against............................................................ 308,018
Abstain............................................................ 715,716
</TABLE>
(3) RATIFICATION OF PRICE WATERHOUSE LLP AS INDEPENDENT ACCOUNTANTS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1996:
<TABLE>
<S> <C>
For................................................................ 40,220,208
Against............................................................ 138,572
Abstain............................................................ 458,553
</TABLE>
<PAGE> 5
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES (85.7%)
Federal Home Loan Mortgage Corp. (12.0%)
$ 7,545 12/01/18 - 02/01/19.......................... 9.50% $ 8,078,235
26,078 07/01/09 - 08/01/20.......................... 10.00 28,628,925
17,067 08/01/14 - 05/01/19.......................... 10.50 18,907,131
------------
55,614,291
------------
Federal National Mortgage Assoc. (52.2%)
24,873 12/01/08 - 01/01/09.......................... 6.00 23,839,129
57,603 05/01/01 - 12/01/23.......................... 6.50 55,261,159
5,000 *............................................ 7.00 4,878,125
48,917 10/01/13 - 04/01/26.......................... 7.00 47,724,619
46,292 01/01/22 - 07/01/25.......................... 7.50 46,248,681
35,762 12/01/21 - 05/01/25.......................... 8.00 36,421,664
20,409 08/01/17 - 05/01/25.......................... 8.50 21,103,960
1,884 09/01/13 - 07/01/23.......................... 9.00 1,976,672
3,510 06/01/18 - 01/01/21.......................... 9.50 3,744,739
------------
241,198,748
------------
Government National Mortgage Assoc. (21.5%)
15,013 02/15/24 - 08/15/25.......................... 7.00 14,637,342
7,418 12/15/22 - 01/15/23.......................... 7.50 7,418,183
15,874 11/15/15 - 12/15/21.......................... 8.00 16,221,595
42,212 05/15/16 - 11/15/24.......................... 8.50 43,966,075
14,665 04/15/17 - 02/15/25.......................... 9.00 15,444,153
1,647 08/15/18 - 08/15/20.......................... 9.50 1,764,419
------------
99,451,767
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $390,331,948)............................. 396,264,806
------------
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (13.3%)
44,780 Federal National Mortgage Assoc.
12/20/01 - 08/01/04.......................... 6.69 - 7.89+ 41,495,399
9,000 Resolution Funding Corp. Coupon Strip
01/15/08..................................... 0.00 6,407,643
8,000 U.S. Treasury Note
09/30/98..................................... 4.75 7,796,250
7,500 U.S. Treasury Strip
05/15/97 - 02/15/03.......................... 0.00 5,606,110
------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS
(Identified Cost $62,429,420).............................. 61,305,402
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 6
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 1996 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENT (1.3%)
REPURCHASE AGREEMENT
$ 6,037 The Bank of New York (dated 03/29/96;
proceeds $6,039,040; collateralized by
$5,760,491 U.S. Treasury Bond 7.25% due
05/15/16 valued at $6,157,512) (Identified
Cost $6,036,776)............................. 4.50% $ 6,036,776
------------
TOTAL INVESTMENTS
(Identified Cost $458,798,144) (a)................. 100.3% 463,606,984
LIABILITIES IN EXCESS OF OTHER ASSETS............. (0.3) (1,218,900)
------ ------------
NET ASSETS......................................... 100.0% $462,388,084
====== ============
</TABLE>
- ---------------------
* Securities were purchased on a forward commitment basis with an approximate
principal amount and no definite maturity date, the actual principal amount
and maturity date will be determined upon settlement.
+ Currently a zero coupon bond and will pay interest at the rate shown at a
future specified date.
(a) The aggregate cost for federal income tax purposes is $458,798,144; the
aggregate gross unrealized appreciation is $9,799,981 and the aggregate
gross unrealized depreciation is $4,991,141, resulting in net unrealized
appreciation of $4,808,840.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 7
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $458,798,144)...................................... $463,606,984
Receivable for:
Interest......................................................... 3,163,981
Principal paydowns............................................... 1,235,770
Prepaid expenses..................................................... 8,973
------------
TOTAL ASSETS..................................................... 468,015,708
------------
LIABILITIES:
Payable for:
Investments purchased............................................ 4,994,097
Investment management fee........................................ 283,533
Shares of beneficial interest repurchased........................ 190,440
Accrued expenses and other payables.................................. 159,554
------------
TOTAL LIABILITIES................................................ 5,627,624
------------
NET ASSETS:
Paid-in-capital...................................................... 492,954,243
Net unrealized appreciation.......................................... 4,808,840
Accumulated undistributed net investment income...................... 375,837
Accumulated net realized loss........................................ (35,750,836)
------------
NET ASSETS....................................................... $462,388,084
============
NET ASSET VALUE PER SHARE,
50,510,400 shares outstanding
(unlimited shares authorized of $.01 par value)..................... $9.15
====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 8
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended March 31, 1996 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME....................................................... $17,181,618
-----------
EXPENSES
Investment management fee............................................. 1,428,574
Transfer agent fees and expenses...................................... 135,211
Custodian fees........................................................ 40,213
Professional fees..................................................... 31,508
Shareholder reports and notices....................................... 28,889
Registration fees..................................................... 20,100
Trustees' fees and expenses........................................... 10,715
Other................................................................. 4,246
-----------
TOTAL EXPENSES.................................................... 1,699,456
-----------
NET INVESTMENT INCOME............................................. 15,482,162
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain..................................................... 341,410
Net change in unrealized appreciation................................. (2,446,309)
-----------
NET LOSS.......................................................... (2,104,899)
-----------
NET INCREASE.......................................................... $13,377,263
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 9
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
MARCH 31, SEPTEMBER 30,
1996 1995
- ---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................. $ 15,482,162 $ 30,973,231
Net realized gain (loss).......................... 341,410 (2,407,664)
Net change in unrealized
appreciation/depreciation........................ (2,446,309) 25,727,799
------------ ------------
NET INCREASE.................................. 13,377,263 54,293,366
Dividends from net investment income.............. (15,410,852) (32,357,962)
Net decrease from transactions in shares of
beneficial interest.............................. (11,049,460) (33,098,100)
------------ ------------
TOTAL DECREASE................................ (13,083,049) (11,162,696)
NET ASSETS:
Beginning of period............................... 475,471,133 486,633,829
------------ ------------
END OF PERIOD
(Including undistributed net investment income
of $375,837 and $304,527, respectively)....... $462,388,084 $ 475,471,133
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 10
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1996 (unaudited)
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) 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; (2) 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 (3) 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 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 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
<PAGE> 11
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1996 (unaudited) continued
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 a management fee, accrued weekly
and payable monthly, by applying the annual rate of 0.60% to the Trust's 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 six months ended March 31,
1996 aggregated $64,677,463 and $76,539,905, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Trust's transfer agent. At March 31, 1996, the Trust had transfer agent fees and
expenses payable of approximately $29,000.
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 six months ended March 31, 1996
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,128. At March 31, 1996, the Trust had an accrued pension liability of
$52,145 which is included in accrued expenses in the Statement of Assets and
Liabilities.
<PAGE> 12
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1996 (unaudited) 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, 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
Treasury shares purchased and retired (weighted average discount 9.22%)*...... (1,318,300) (13,183) (11,036,277)
---------- -------- ------------
Balance, March 31, 1996....................................................... 50,510,400 $505,104 $492,449,139
========== ======== ============
</TABLE>
- ---------------------
* The Trustees have voted to retire the shares purchased.
5. DIVIDENDS
On March 26, 1996, the Trust declared the following dividends from net
investment income:
<TABLE>
<CAPTION>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
- --------- -------------- ---------------
<S> <C> <C>
$0.05 April 4, 1996 April 19, 1996
$0.05 May 3, 1996 May 17, 1996
$0.05 June 7, 1996 June 21, 1996
</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, which is 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> 13
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 SIX
MONTHS ENDED FOR THE YEAR ENDED SEPTEMBER 30*
MARCH 31, ----------------------------------------------
1996* 1995 1994++ 1993
-------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 9.17 $ 8.69 $ 9.54 $ 9.72
------- ----- ----- -----
Net investment income....................................... 0.30 0.58 0.62 0.81
Net realized and unrealized gain (loss)..................... (0.04) 0.43 (0.77) (0.29)
------- ----- ----- -----
Total from investment operations............................ 0.26 1.01 (0.15) 0.52
------- ----- ----- -----
Dividends from net investment income........................ (0.30) (0.60) (0.73) (0.70)
------- ----- ----- -----
Anti-dilutive effect of acquiring treasury shares........... 0.02 0.07 0.03 --
------- ----- ----- -----
Net asset value, end of period.............................. $ 9.15 $ 9.17 $ 8.69 $ 9.54
======= ===== ===== =====
Market value, end of period................................. $8.125 $ 8.25 $7.875 $9.125
======= ===== ===== =====
TOTAL INVESTMENT RETURN+.................................... 2.06%(1) 12.97% (5.97)% 6.51%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.73%(2) 0.71% 0.70% 0.70%
Net investment income....................................... 6.61%(2) 6.50% 6.73% 8.54%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $462,388 $475,471 $486,634 $551,659
Portfolio turnover rate..................................... 14%(1) 25% 59% 132%
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30*
--------------------------------
1992 1991
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 9.70 $ 9.32
----- -----
Net investment income....................................... 0.78 0.83
Net realized and unrealized gain (loss)..................... -- 0.39
----- -----
Total from investment operations............................ 0.78 1.22
----- -----
Dividends from net investment income........................ (0.76) (0.84)
----- -----
Anti-dilutive effect of acquiring treasury shares........... -- --
----- -----
Net asset value, end of period.............................. $ 9.72 $ 9.70
===== =====
Market value, end of period................................. $ 9.25 $9.375
===== =====
TOTAL INVESTMENT RETURN+.................................... 8.85% 17.28%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 0.72% 0.72%
Net investment income....................................... 8.06% 8.81%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $561,749 $561,318
Portfolio turnover rate..................................... 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 dividend reinvestment plan. Total
investment return does not reflect brokerage commissions.
++ Restated for comparative purposes.
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 14
(This page has been left blank intentionally.)
<PAGE> 15
(This page has been left blank intentionally.)
<PAGE> 16
TRUSTEES
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
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
DEAN WITTER
GOVERNMENT
INCOME
TRUST
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
Semiannual Report
March 31, 1996
