<PAGE> 1
DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS March 31, 1998
DEAR SHAREHOLDER:
During the six months ended March 31, 1998, the economy exhibited healthy growth
and declining inflation. The Federal Reserve Board expressed concern over the
possibility of a resurgence in inflation due to the continued strength of the
economy and employment growth, but this did not materialize, and as a result,
the Board left rates unchanged.
Interest rates on intermediate-term U.S. Treasuries during the six-month period
ended March 31, 1998, were highly volatile, with yields on five-year U.S.
Treasuries ranging from 5.21 percent to 6.08 percent. At the end of the period,
the five-year U.S. Treasury note was yielding 5.62 percent, compared to 5.99
percent six months ago.
PERFORMANCE AND PORTFOLIO
The Trust's performance for the six-month period ended March 31, 1998, was
enhanced by the generally lower interest-rate environment. On March 31, 1998,
Dean Witter Government Income Trust's net asset value per share (NAV) was $9.42
up from $9.32 on September 30, 1997. 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, 1998, was 4.63 percent.
Over the same period, the Trust's market price per share on the New York Stock
Exchange (NYSE) rose to $8.625, from $8.438, with a total return (based on its
market price on the NYSE) of 5.82 percent. The Trust continued to declare income
dividends at a rate of $0.05 per share per month.
On March 24, 1998, the Trust declared a monthly income dividend of $0.05 per
share, payable April 17, 1998, to shareholders of record on April 3, 1998. In
addition, the Trust has declared the following dividends:
<TABLE>
<CAPTION>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
- --------- ------------ -------------
<S> <C> <C>
$0.05 May 8, 1998 May 22, 1998
$0.05 June 5, 1998 June 19, 1998
</TABLE>
The Trust continues to be a competitive investment alternative in the current
low-inflation environment.
<PAGE> 2
DEAN WITTER GOVERNMENT INCOME TRUST
LETTER TO THE SHAREHOLDERS March 31, 1998, continued
As of March 31, 1998, the Trust had net assets in excess of $421 million, with
72 percent of its assets invested in mortgage-backed securities issued by the
Government National Mortgage Association (GNMA), the Federal National Mortgage
Association (FNMA) and the Federal Home Loan Mortgage Corp. (FHLMC), 21 percent
in U.S. agency obligations, five percent in U.S. Treasury securities and the
remaining two percent in cash equivalents. On March 31, 1998, the Trust's
average maturity was 5.9 years. Adjustments to the Trust's average maturity will
be made as attractive opportunities present themselves.
For the balance of 1998, income and the proceeds from sales or maturities may be
reinvested in 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 high total returns.
MARKET OVERVIEW
As the summer of 1997 came to a close, the turmoil in the Southeast Asian
financial markets brought an investor flight to quality in U.S. Treasuries and
the U.S. dollar. Should the crisis in Southeast Asia continue through 1998, we
believe that the deflationary trend of the Southeast Asian economies could prove
beneficial to declining inflation in the United States.
We expect that the Federal Reserve is unlikely to raise interest rates for the
first half of 1998 and the U.S. economy should maintain a healthy, albeit
slowing, pace for the remainder of the year. However, should inordinately strong
economic growth give rise to inflationary pressures, the Federal Reserve may
need to reassess its current monetary policy.
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, 1,367,100 shares of common stock at a weighted average
market discount of 8.15 percent of the Trust were purchased on the New York
Stock Exchange over the six-month period ended March 31, 1998.
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
2
<PAGE> 3
DEAN WITTER GOVERNMENT INCOME TRUST
RESULTS OF ANNUAL MEETING (unaudited)
* * *
On December 18, 1997, an annual meeting of the Trust's shareholders was held for
the purpose of voting on two separate matters, the results of which were as
follows:
(1) ELECTION OF TRUSTEES:
<TABLE>
<S> <C>
Wayne E. Hedien
For......................................................... 36,234,374
Withheld.................................................... 977,452
Dr. Manuel H. Johnson
For......................................................... 36,242,236
Withheld.................................................... 969,500
John L. Schroeder
For......................................................... 36,189,875
Withheld.................................................... 1,021,951
</TABLE>
The following Trustees were not standing for reelection at this meeting:
Michael Bozic, Charles A. Fiumefreddo, Edwin J. Garn, John R. Haire, Michael
E. Nugent, and Philip J. Purcell.
(2) RATIFICATION OF THE SELECTION OF PRICE WATERHOUSE LLP AS THE TRUST'S
INDEPENDENT ACCOUNTANTS:
<TABLE>
<S> <C>
For......................................................... 35,776,267
Against..................................................... 614,749
Abstain..................................................... 820,810
</TABLE>
3
<PAGE> 4
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES (71.7%)
Federal Home Loan Mortgage Corp. (7.9%)
$ 5,358 12/01/18 - 02/01/19............................. 9.50% $ 5,706,365
15,357 07/01/09 - 08/01/20............................. 10.00 16,566,618
10,240 08/01/14 - 05/01/19............................. 10.50 11,200,342
------------
33,473,325
------------
Federal National Mortgage Assoc. (45.6%)
18,948 11/01/08 - 01/01/09............................. 6.00 18,652,419
47,558 05/01/07 - 12/01/23............................. 6.50 47,222,348
45,422 10/01/13 - 04/01/26............................. 7.00 45,876,567
37,314 01/01/22 - 01/01/27............................. 7.50 38,234,966
24,864 12/01/21 - 10/01/25............................. 8.00 25,741,814
12,248 08/01/17 - 05/01/25............................. 8.50 12,803,244
1,134 09/01/13 - 07/01/23............................. 9.00 1,201,682
2,136 06/01/18 - 01/01/21............................. 9.50 2,285,504
------------
192,018,544
------------
Government National Mortgage Assoc. (18.2%)
1,000 04/01/28 (a).................................... 6.50 985,938
13,218 02/15/24 - 08/15/25............................. 7.00 13,349,724
10,577 12/15/22 - 06/15/26............................. 7.50 10,848,209
12,051 11/15/15 - 12/15/21............................. 8.00 12,479,978
27,170 05/15/16 - 11/15/24............................. 8.50 28,663,824
8,613 04/15/17 - 02/15/25............................. 9.00 9,215,476
951 08/15/18 - 08/15/20............................. 9.50 1,031,144
------------
76,574,293
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $292,906,038)............................ 302,066,162
------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (26.4%)
3,085 Federal Farm Credit Bank
01/10/05....................................... 5.90 3,076,054
2,000 Federal Farm Credit Corp.
09/23/04....................................... 6.30 2,039,840
1,000 Federal Farm Credit Corp.
09/24/07....................................... 6.52 1,038,050
14,000 Federal Home Loan Banks
02/25/04 - 07/02/12............................ 0.00 8,780,120
2,000 Federal Home Loan Banks
02/05/08....................................... 5.96 1,994,240
3,500 Federal Home Loan Banks
10/10/07....................................... 6.20 3,553,200
2,000 Federal Home Loan Banks
08/15/07....................................... 6.295 2,043,380
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE> 5
DEAN WITTER GOVERNMENT INCOME TRUST
PORTFOLIO OF INVESTMENTS March 31, 1998 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 2,500 Federal National Mortgage Assoc.
02/01/04 - 08/01/04............................ 0.00% $ 1,746,621
1,000 Federal National Mortgage Assoc.
07/30/07....................................... 6.75 1,011,060
103,000 Resolution Funding Corp. Coupon Strip
10/15/01 - 10/15/07............................ 0.00 65,112,860
6,500 U.S. Treasury Note
09/30/98+...................................... 4.75 6,476,210
4,000 U.S. Treasury Note
08/15/07....................................... 6.125 4,109,280
4,000 U.S. Treasury Note
02/15/07....................................... 6.25 4,132,480
2,000 U.S. Treasury Note
08/15/05....................................... 6.50 2,088,460
5,000 U.S. Treasury Strip
02/15/03....................................... 0.00 3,803,500
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Identified Cost $107,553,263)............................ 111,005,355
------------
SHORT-TERM INVESTMENT (1.5%)
REPURCHASE AGREEMENT
6,341 The Bank of New York due 04/01/98 (dated
03/31/98; proceeds $6,342,218) (b)
(Identified Cost $6,341,271)................... 5.375 6,341,271
------------
TOTAL INVESTMENTS
(Identified Cost $406,800,572) (c).............. 99.6% 419,412,788
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.. 0.4 1,818,367
----- ------------
NET ASSETS...................................... 100.0% $421,231,155
===== ============
</TABLE>
- ---------------------
+ Security segregated as collateral for securities purchased on a forward
commitment basis.
(a) Securities purchased on a forward commitment basis with an approximate
principal amount. The actual principal amount will be determined upon
settlement.
(b) Collateralized by $6,457,573 U.S. Treasury Note 5.50% due 01/31/03 valued at
$6,468,096.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $17,821,120 and the
aggregate gross unrealized depreciation is $5,208,904, resulting in net
unrealized appreciation of $12,612,216.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE> 6
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $406,800,572)............................. $419,412,788
Cash........................................................ 154,375
Receivable for:
Interest................................................ 2,420,961
Principal paydowns...................................... 760,233
Prepaid expenses and other assets........................... 46,921
------------
TOTAL ASSETS............................................ 422,795,278
------------
LIABILITIES:
Payable for:
Investments purchased................................... 993,274
Investment management fee............................... 222,717
Shares of beneficial interest repurchased............... 212,066
Accrued expenses and other payables......................... 136,066
------------
TOTAL LIABILITIES....................................... 1,564,123
------------
NET ASSETS.............................................. $421,231,155
============
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. $433,556,542
Net unrealized appreciation................................. 12,612,216
Accumulated undistributed net investment income............. 302,537
Accumulated net realized loss............................... (25,240,140)
------------
NET ASSETS.............................................. $421,231,155
============
NET ASSET VALUE PER SHARE,
44,722,200 shares outstanding
(unlimited shares authorized of $.01 par value)............ $9.42
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE> 7
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended March 31, 1998 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $15,064,342
-----------
EXPENSES
Investment management fee................................... 1,280,310
Transfer agent fees and expenses............................ 106,861
Custodian fees.............................................. 37,040
Professional fees........................................... 28,660
Registration fees........................................... 20,377
Shareholder reports and notices............................. 20,369
Trustees' fees and expenses................................. 10,914
Other....................................................... 3,522
-----------
TOTAL EXPENSES.......................................... 1,508,053
-----------
NET INVESTMENT INCOME................................... 13,556,289
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss........................................... (6,591)
Net change in unrealized appreciation....................... 3,366,241
-----------
NET GAIN................................................ 3,359,650
-----------
NET INCREASE................................................ $16,915,939
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
DEAN WITTER GOVERNMENT INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE YEAR
MARCH 31, ENDED
1998 SEPTEMBER 30, 1997
- --------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.............................. $13,556,289 $ 28,390,909
Net realized gain (loss)........................... (6,591) 55,238
Net change in unrealized
appreciation/depreciation......................... 3,366,241 9,296,771
----------- ------------
NET INCREASE................................... 16,915,939 37,742,918
Dividends from net investment income............... (13,642,809) (28,178,965)
Net decrease from transactions in shares of
beneficial interest............................... (11,806,187) (19,695,793)
----------- ------------
NET DECREASE................................... (8,533,057) (10,131,840)
NET ASSETS:
Beginning of period................................ 429,764,212 439,896,052
----------- ------------
END OF PERIOD
(Including undistributed net investment income
of $302,537 and $389,057, respectively)........ $421,231,155 $429,764,212
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1998 (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's primary investment objective is to
provide as high a level of current income as is consistent with prudent
investment and as a secondary objective, capital appreciation. The Trust
commenced operations on February 29, 1988.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.
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, including circumstances under which it is
determined by Dean Witter InterCapital Inc. (the "Investment Manager") that sale
or 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); (3) certain portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service may utilize 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 (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 are accreted over the life of the respective securities. Interest
income is accrued daily.
9
<PAGE> 10
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1998 (unaudited) continued
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 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, the Trust pays the Investment
Manager 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,
1998 aggregated $21,801,806 and $34,202,900, respectively.
10
<PAGE> 11
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1998 (unaudited) continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager, is
the Trust's transfer agent. At March 31, 1998, the Trust had transfer agent fees
and expenses payable of approximately $27,000.
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 month ended March 31, 1998
included in Trustees' fees and expenses in the Statement of Operations amounted
to $1,898. At March 31, 1998, the Trust had an accrued pension liability of
$48,650 which is included in accrued expenses in the Statement of Assets and
Liabilities.
4. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CAPITAL
PAID IN
PAR VALUE EXCESS OF
SHARES OF SHARES PAR VALUE
---------- --------- ------------
<S> <C> <C> <C>
Balance, September 30, 1996................................. 48,438,400 $484,384 $474,997,268
Treasury shares purchased and retired (weighted average
discount 8.91%)*........................................... (2,349,100) (23,491) (19,672,302)
Reclassification due to permanent book/tax differences...... -- -- (10,423,130)
---------- -------- ------------
Balance, September 30, 1997................................. 46,089,300 460,893 444,901,836
Treasury shares purchased and retired (weighted average
discount 8.15%)*........................................... (1,367,100) (13,671) (11,792,516)
---------- -------- ------------
Balance, March 31, 1998..................................... 44,722,200 $447,222 $433,109,320
========== ======== ============
</TABLE>
- ---------------------
* The Trustees have voted to retire the shares purchased.
5. DIVIDENDS
On March 24, 1998, 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 3, 1998 April 17, 1998
$0.05 May 8, 1998 May 22, 1998
$0.05 June 5, 1998 June 19, 1998
</TABLE>
11
<PAGE> 12
DEAN WITTER GOVERNMENT INCOME TRUST
NOTES TO FINANCIAL STATEMENTS March 31, 1998 (unaudited) continued
6. FEDERAL INCOME TAX STATUS
At September 30, 1997, the Trust had a net capital loss carryover of
approximately $25,208,000, to offset future capital gains to the extent provided
by regulations, available through September 30 of the following years:
<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
- --------------------------------------------
<S> <C> <C> <C> <C>
1998 1999 2002 2003 2004
- ------ ---- ------ ------ ------
$5,061 $191 $8,299 $9,638 $2,019
====== ==== ====== ====== ======
</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 $26,000 during fiscal 1997.
12
<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 FOR THE YEAR ENDED SEPTEMBER 30*
MONTHS ENDED ----------------------------------------------------
MARCH 31, 1998* 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................. $ 9.32 $ 9.08 $9.17 $ 8.69 $ 9.54 $ 9.72
------ ------ ----- ------ ------ ------
Net investment income................................. 0.30 0.61 0.60 0.58 0.62 0.81
Net realized and unrealized gain (loss)............... 0.08 0.19 (0.14) 0.43 (0.77) (0.29)
------ ------ ----- ------ ------ ------
Total from investment operations...................... 0.38 0.80 0.46 1.01 (0.15) 0.52
------ ------ ----- ------ ------ ------
Less dividends from net investment income............. (0.30) (0.60) (0.60) (0.60) (0.73) (0.70)
------ ------ ----- ------ ------ ------
Anti-dilutive effect of acquiring treasury shares..... 0.02 0.04 0.05 0.07 0.03 --
------ ------ ----- ------ ------ ------
Net asset value, end of period........................ $ 9.42 $ 9.32 $9.08 $ 9.17 $ 8.69 $ 9.54
====== ====== ===== ====== ====== ======
Market value, end of period........................... $8.625 $8.438 $8.25 $ 8.25 $7.875 $9.125
====== ====== ===== ====== ====== ======
TOTAL INVESTMENT RETURN+.............................. 5.82%(1) 9.86% 7.31% 12.97% (5.97)% 6.51%
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................. 0.71%(2) 0.73% 0.73% 0.71% 0.70% 0.70%
Net investment income................................. 6.37%(2) 6.60% 6.56% 6.50% 6.73% 8.54%
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............... $421,231 $429,764 $439,896 $475,471 $486,634 $551,659
Portfolio turnover rate............................... 5%(1) 19% 21% 25% 59% 132%
</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 last
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.
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE> 14
(This Page Intentionally Left Blank)
<PAGE> 15
(This Page Intentionally Left Blank)
<PAGE> 16
DEAN WITTER
GOVERNMENT
INCOME TRUST
TRUSTEES
- ----------------------------------------------------
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
- ----------------------------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Rajesh K. Gupta
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
- ----------------------------------------------------
Morgan Stanley Dean Witter Trust FSB
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
Trust without examination by the independent accountants and accordingly they
do not express an opinion thereon.
SEMIANNUAL REPORT
MARCH 31, 1998
