<PAGE>
Dean Witter California Tax-Free Daily Income Trust
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - --------------------------------------------------------------------------------
Following the lead of the taxable sector, tax-free money market interest
rates moved to higher levels during the first half of 1994. While the Federal
Reserve Board's tighter monetary policy was the primary determinant of higher
yields, seasonal forces at times played a role in the direction of the
municipal money market. Mounting evidence of a strengthening economy and
heightened inflationary concerns prompted the Federal Reserve's first short-term
interest rate increases in several years.
Within the short-term municipal securities market, the rising pattern of
interest rates was most clear among longer-term securities. One-year returns, as
measured by The Bond Buyer One-Year Note Index,* rose from 2.30 percent at the
end of December 1993 to 3.81 percent in early June 1994. This represented the
highest level since December 1991. Returns for variable rate demand obligations
(VRDOs) with daily and weekly rate changes were more susceptible to seasonal
imbalances in supply and demand. Weekly VRDO yields fluctuated between 1.50
percent and 3.20 percent during the period. Despite the swings, however, the
overall trend was toward higher yields.
PORTFOLIO MANAGEMENT AND PERFORMANCE
The market's negative tone called for a more defensive portfolio strategy.
The Fund's targeted average maturity was shortened from between 46 and 54 days
in December 1993 to a range of 23 to 30 days in May 1994. The Fund's weighted
average maturity was extended during the latter half of June when the pressure
from the large supply of new seasonal financings caused one-year yields to rise
to relatively attractive levels.
Adherence to high quality standards is the prevailing focus in the
selection of investments. With California's economy lagging the rest of the
nation, particular attention has been given to monitoring credit quality. As the
economy emerges from its slowdown, some of the issuers that have been avoided
because of budgetary difficulties may again be considered for investment. Banks
providing letters of credit are watched closely for changes in credit quality.
Ongoing efforts have been made in recent periods to reduce the Fund's overall
exposure to banks, and investments are confined to only the most highly regarded
institutions. In particular, investments backed by Japanese bank letters of
credit have been limited because of the current weakness in the Japanese
economy.
On June 30, 1994, the Fund's annualized 30-day yield was 1.90 percent. The
Fund had net assets in excess of $260 million, with an average maturity of 63
days. At the end of June, the Fund's portfolio was broadly diversified in five
municipal market sectors - general obligation/tax supported, hospital, housing,
water and sewer, and transportation issues. The Fund was 59 percent invested in
VRDOs. California-exempt commercial paper and municipal notes, the two other
types of securities utilized in the portfolio, comprised 25 percent and 16
percent of the portfolio, respectively.
LOOKING FORWARD
In the period immediately ahead, we will watch closely for further actions
by the Federal Reserve Board aimed at thwarting potential inflationary pressure.
The perceived bias toward higher interest rates warrants a continued cautious
approach. Average maturities will be monitored carefully to minimize exposure to
market volatility. As always, we will maintain our emphasis on quality and
liquidity in making investment selections.
We appreciate your support of Dean Witter California Tax-Free Daily Income
Trust and look forward to continuing to serve your investment needs and
objectives.
Very truly yours
/S/ C. Fiumefreddo
Charles A. Fiumefreddo
Chairman of the Board
- - --------
* The Bond Buyer One-Year Note Index is the average of 12-month note rates for
10 state and local governments rated MIG-1 by Moody's Investors Service and
SP-1 plus or SP-1 by Standard & Poor's Corp.
<PAGE>
<TABLE>
DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited)
- - --------------------------------------------------------------------------------
<CAPTION>
Principal
Amount (in Current
thousands) Yield Value
-------- ------ -------
<C> <S> <C> <C>
CALIFORNIA TAX-EXEMPT SHORT-TERM VARIABLE RATE MUNICIPAL
OBLIGATIONS* (65.5%)
California Health Facilities Financing
Authority,
$ 7,700 Adventist Health System West Sutter
Health Ser A, 2.20% due 7/7/94 ............ 2.20% $ 7,700,000
4,500 Catholic HealthCare West Ser 1988
Ser A (MBIA Insured), 2.35% due 7/6/94..... 2.35 4,500,000
6,000 Childrens Hospital of Orange County Ser
1991 (MBIA Insured), 2.15% due 7/7/94..... 2.15 6,000,000
7,070 Daughters of Charity National Health
Systems _ St Vincent Medical Center Inc
Ser 1983, 2.45% due 7/6/94 ............... 2.45 7,070,000
4,920 Health Dimensions Inc Ser 1987 A,
2.35% due 8/1/94 ......................... 2.35 4,920,000
5,000 Memorial Health Services Ser 1994,
2.15% due 7/6/94 ......................... 2.15 5,000,000
5,000 St Joseph Health System Ser 1991 B,
2.75% due 7/1/94 ......................... 2.75 5,000,000
5,800 Scripps Memorial Hospital Ser 1991 B
(MBIA Insured), 2.40% due 7/6/94 ......... 2.40 5,800,000
4,800 Sutter Health Ser 1990 B, 3.05% due 7/1/94 3.05 4,800,000
California Pollution Control
Financing Authority,
3,000 Chevron USA Inc Ser 1984 B, 3.70%
due 12/15/94 ............................. 3.70 3,000,000
5,400 Noranda-Grey Eagle Mines Inc
Ser 1983 A & 1985 C, 2.45% due 7/6/94 .... 2.45 5,400,000
14,500 California Public Capital Improvements
Financing Authority, Pooled Ser 1988 C,
3.15% due 9/15/94 ........................... 3.15 14,500,000
5,600 Contra Costa Transportation Authority,
Sales Tax 1993 Ser A (FGIC Insured),
2.55% due 7/6/94 .......................... 2.55 5,600,000
2,500 Irvine, The Irvine Co Multi-family
Ser 1983 A, 2.65% due 7/5/94 .............. 2.65 2,500,000
7,500 Irvine Public Facilities & Infrastructure
Authority, Cap Imp Ser 1985,
2.45% due 7/7/94 .......................... 2.45 7,500,000
4,000 Irvine Ranch Water District, Cons Ser
1985 B, 3.00% due 7/1/94 .................. 3.00 4,000,000
4,300 Kern County, Public Facilities 1986
Ser A COPs, 2.25% due 7/6/94 .............. 2.25 4,300,000
5,900 Los Angeles, Multi-family 1985 Series K,
2.40% due 7/5/94 .......................... 2.40 5,900,000
11,500 Los Angeles County Metropolitan
Transportation Authority, Prop C Sales
Tax Refg Ser 1993 A (MBIA Insured),
2.40% due 7/7/94 .......................... 2.40 11,500,000
10,000 Newport Beach, Hoag Memorial
Hospital/Presbyterian 1992 Ser A,
3.45% due 7/1/94 .......................... 3.45 10,000,000
8,500 Oakland, Skyline Hills Assn Multi-family
Issue A of 1985, 2.30% due 7/1/94 ......... 2.30 8,500,000
7,000 Orange County, Yorba Linda/River Bend
Issue D of Ser 1985, 2.30% due 7/7/94 ..... 2.30 7,000,000
6,300 Sacramento County, Administration Center &
Courthouse Ser 1990 COPs, 2.10% due 7/7/94.. 2.10 6,300,000
5,000 San Diego, Lusk Mira Mesa Apts Issue E 1985,
2.25% due 7/7/94 ........................... 2.25 5,000,000
6,000 San Diego County Regional Transportation
Commission, Sales Tax 1992 Ser A
(FGIC Insured), 2.50 due 7/6/94 ............ 2.50 6,000,000
7,000 San Francisco Redevelopment Agency,
Bayside Village Multi-family 1985 Issue D
Ser A, 2.525% due 7/7/94 ................... 2.525 7,000,000
3,000 Santa Ana, Town & Country Manor Ser 1990,
3.00% due 7/1/94 ........................... 3.00 3,000,000
3,000 Southern California Public Power Authority,
Transmission 1991 Refg Ser
(AMBAC Insured), 2.10% due 7/5/94 .......... 2.10 3,000,000
----------
TOTAL CALIFORNIA TAX-EXEMPT SHORT-TERM
MUNICIPAL OBLIGATIONS (Amortized
Cost $170,790,000)......................... 170,790,000
------------
<CAPTION>
Yield to
Maturity
on Date of
Purchase
-----------
<C> <S> <C> <C>
CALIFORNIA TAX-EXEMPT COMMERCIAL PAPER (27.2%)
3,385 Anaheim, Electric RANs, 2.85%
due 7/12/94 .......................... 2.85% 3,385,000
3,500 California Pollution Control Financing
Authority, Pacific Gas & Electric Co
Ser E 1988, 3.20% due 9/21/94 ........ 3.20 3,500,000
6,000 Delmar Race Track Authority, Ser 1993
BANs, 2.55% due 9/14/94 .............. 2.55 6,000,000
7,000 East Bay Municipal Utility District,
Water, 2.75% due 8/30/94 ............. 2.75 7,000,000
Irvine Assessment District,
4,000 #85-7, 2.55% due 8/18/94 ............. 2.55 4,000,000
4,000 #85-7, 2.75% due 8/25/94 ............. 2.75 4,000,000
6,400 #85-7, 3.25% due 10/20/94 ............ 3.25 6,400,000
<PAGE>
DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
PORTFOLIO OF INVESTMENTS June 30, 1994 (unaudited)
- - --------------------------------------------------------------------------------
<CAPTION>
Yield to
Maturity
on Date of
Purchase Value
----------- -----
<C> <S> <C> <C>
Los Angeles Wastewater System
$ 3,500 3.15% due 8/17/94 ................... 3.15% $3,500,000
3,000 2.65% due 8/22/94 ................... 2.65 3,000,000
4,800 3.25% due 9/15/94 ................... 3.25 4,800,000
Metropolitan Water District of
Southern California,
5,900 2.60% due 8/11/94 ..................... 2.60 5,900,000
2,750 3.25% due 9/13/94 ..................... 3.25 2,750,000
Orange County, The Irvine Co Apts
Issue 1 of 1985,
4,000 2.80% due 8/10/94 ..................... 2.80 4,000,000
3,000 2.65% due 8/10/94 ..................... 2.65 3,000,000
2,800 Puerto Rico Maritime Shipping Authority,
Ser A, 3.25% due 9/15/94 .............. 3.25 2,800,000
Sacramento Municipal Utility District,
Ser H,
2,000 2.70% due 7/27/94 .................... 2.70 2,000,000
5,000 3.30% due 10/14/94 ................... 3.30 5,000,000
-----------
TOTAL CALIFORNIA TAX-EXEMPT COMMERCIAL PAPER
(Amortized Cost $71,035,000) ............. 71,035,000
-----------
CALIFORNIA TAX-EXEMPT SHORT-TERM
MUNICIPAL NOTES (18.1%)
California School Cash Reserve
Program Authority,
13,000 1993 Pool Ser A, dtd 7/2/93 3.40%
due 7/5/94 ............................... 2.90 13,000,691
5,000 1994 Contingency Ser A, dtd 7/5/94 4.50%
due 6/28/95 (a)........................... 3.85 5,030,700
7,000 1994 Pool Ser A, dtd 7/5/94 4.50%
due 7/5/95 (a) ........................... 3.75 7,050,540
6,000 California Statewide Communities Development
Authority, 1994 Ser A TRANs,
dtd 7/6/94 4.50% due 7/17/95 (a) .......... 3.65 6,050,640
5,000 Los Angeles County Local Educational
Agencies, Pooled 1994-95 Ser A TRANs,
dtd 7/7/94 4.50% due 7/6/95 (a) ........... 3.75 5,036,000
6,000 Riverside County, Ser 1994-95 TRANs,
dtd 7/1/94 4.25% due 6/30/95 (a) .......... 3.60 6,037,500
5,000 San Diego County, 1993-1994 TRANs,
dtd 7/1/93 3.25% due 7/29/94 .............. 2.90 5,001,289
-----------
TOTAL CALIFORNIA TAX-EXEMPT SHORT-TERM
MUNICIPAL NOTES (Amortized Cost
$47,207,360) .............................. 47,207,360
-----------
TOTAL INVESTMENTS (Amortized Cost
$289,032,360) (b) ....................... 110.8% 289,032,360
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS ........................ (10.8) (28,164,535)
------ -----------
NET ASSETS ............................... 100.0% $260,867,825
======= ============
<FN>
- - ----------
COPs - Certificate of Participation
RANs - Revenue Anticipation Notes
BANs - Bond Anticipation Notes
TRANs - Tax and Revenue Anticipation Notes
* Due date reflects next rate change.
(a) When issued securities.
(b) Cost is the same for federal income tax purposes.
</TABLE>
See Notes to Financial Statements
<PAGE>
<TABLE>
DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1994 (unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value
(amortized cost $289,032,360) (Note 1) ................ $289,032,360
Cash ..................................................... 1,814,587
Receivable for:
Interest .............................................. 1,433,222
Shares of beneficial interest sold .................... 754
Prepaid expenses and other assets ........................ 32,643
-------------
Total Assets ..................................... 292,313,566
-------------
LIABILITIES:
Payable for:
Investments purchased ................................. 29,205,380
Shares of beneficial interest repurchased ............. 2,012,243
Investment management fee (Note 2) .................... 110,383
Plan of distribution fee (Note 3) ..................... 22,077
Accrued expenses (Note 4) ................................ 95,658
-------------
Total Liabilities ................................ 31,445,741
-------------
NET ASSETS:
Paid-in-capital .......................................... 260,868,572
Accumulated net realized loss on investments ............. (933)
Accumulated undistributed net investment
income ................................................ 186
-------------
Net Assets ....................................... $260,867,825
=============
Net Asset Value Per Share, 260,868,571
shares outstanding (unlimited shares
authorized of $.01 par value)......................... $1.00
=====
</TABLE>
<TABLE>
- - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1994 (unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income ....................................... $3,283,912
----------
Expenses
Investment management fee (Note 2) .................. 660,900
Plan of distribution fee (Note 3) ................... 127,549
Transfer agent fees and expenses .................... 95,974
Shareholder reports and notices ..................... 21,414
Professional fees ................................... 19,855
Trustees' fees and expneses (Note 4) ................ 13,608
Registration fees ................................... 8,124
Custodian fees ...................................... 1,966
Other ............................................... 5,076
-----------
Total Expenses ................................... 954,466
-----------
Net Investment Income ......................... 2,329,446
-----------
NET REALIZED LOSS ON INVESTMENT
(Note 1): ........................................... (933)
-----------
Net Increase in Net Assets
Resulting from Operations ................... $2,328,513
===========
</TABLE>
<PAGE>
<TABLE>
- - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<S> <C> <C>
For the
six months ended For the
June 30, 1994 year ended
(unaudited) December 31, 1993
---------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............. $ 2,329,446 $ 4,940,515
Net realized loss on investments... (933) - 0 -
------------ ----------
Net increase in net assets
resulting from operations ..... 2,328,513 4,940,515
Dividends to shareholders from net
investment income ................ (2,329,260) (4,963,011)
Net increase (decrease) from
transactions in shares of
beneficial interest (Note 5) ...... 9,810,018 (36,962,977)
------------ ------------
Total increase (decrease) ........ 9,809,271 (36,985,473)
NET ASSETS:
Beginning of period ................. 251,058,554 288,044,027
------------ ------------
End of period (including undistributed
net investment income of
$186 and -0- respectively)........... $260,867,825 $251,058,554
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES-Dean Witter California Tax-Free Daily
Income Trust (the "Fund") is registered under the Investment Company Act of
1940, as amended (the "Act"), as a diversified, open-end management investment
company. It was organized on April 25, 1988 as a Massachusets business trust and
commenced operations on July 22, 1988.
The following is a summary of significant accounting policies:
A. Valuation of Investments-Portfolio securities are valued at amortized
cost, which approximates market value.
B. Accounting for Investments-Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). In computing
net investment income, the Fund amortizes any premiums and original issue
discounts and accrues interest income daily. Realized gains and losses on
security transactions are determined on the identified cost method.
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 and non-taxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders-Dividends and distributions
to shareholders are recorded by the Fund as of the close of the Fund's
business day.
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 calculated daily and payable
monthly by applying the following annual rates to the net assets of the Fund
determined as of the close of each business day; 0.50% of the portion of the
daily net assets not exceeding $500 million; 0.425% of the portion of the daily
net assets exceeding $500 million but not exceeding $750 million; 0.375% of the
portion of the daily net assets exceeding $750 million but not exceeding $1
billion; 0.35% of the portion of the daily net assets exceeding $1 billion but
not exceeding $1.5 billion; 0.325% of the portion of the daily net assets
exceeding $1.5 billion but not exceeding $2 billion; 0.30% of the portion of the
daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.275% of
the portion of the daily net assets exceeding $2.5 billion but not exceeding $3
billion; and 0.25% of the portion of the daily net assets exceeding $3 billion.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes office space and facilities, equipment, clerical,
bookkeeping, and certain legal services, and pays the salaries of all personnel,
including officers of the Fund who are employees of the Investment Manager. The
Investment Manager also bears the cost of telephone services, heat, light, power
and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION-Shares of beneficial interest of the Fund are
distributed by Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager. The Fund has entered into a Plan of Distribution (the
"Plan"), pursuant to Rule 12b-1 under the Act, with the Distributor whereby the
Distributor finances certain activities in connection with the distribution of
shares of the Fund.
Under the Plan the Distributor bears the expense of all promotional and
distribution related activites on behalf of the Fund, except for expenses that
the Trustees determine to reimburse, as described below. The following activites
and services may be provided by the Distributor under the Plan: (1) compensation
to sales representatives of the Distributor and other broker-dealers; (2) sales
<PAGE>
incentives and bonuses to sales representatives and to marketing personnel in
connection with promoting sales of the Fund's shares; (3) expenses incurred in
connection with promoting sales of the Fund's shares; (4) preparing and
distributing sales literature; and (5) providing advertising and promotional
activities, including direct mail solicitation and television, radio, newspaper,
magazine and other media advertisements.
The Fund is authorized to reimburse the Distributor for specific expenses
the Distributor incurs or plans to incur in promoting the distribution of the
Fund's shares. The amount of each monthly reimbursement payment may in no event
exceed an amount equal to a payment at the annual rate of 0.15% of the Fund's
average daily net assets during the month. For the six months ended June 30,
1994, the distribution fee established by the Trustees and accrued was at the
annual rate of 0.10%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES_The cost of purchases
and the proceeds from sales/maturities of portfolio securities for the six
months ended June 30, 1994, aggregated $256,945,380 and $222,891,563,
respectively.
On April 1, 1991 the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Fund who will have
served as an independent Trustee for at least five years at the time of
retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension cost for
the six months ended June 30, 1994, included in Trustees' fees and expenses in
the Statement of Operations, amounted to $4,047. At June 30, 1994 the Fund had
an accrued pension liability of $43,061 which is included in accrued expenses in
the Statement of Assets and Liabilities.
Dean Witter Trust Company, an affiliate of the Investment Manager and the
Distributor, is the Fund's transfer agent. At June 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $17,000.
<TABLE>
5. SHARES OF BENEFICIAL INTEREST-Transactions in shares of beneficial interest,
at $1.00 per share, were as follows:
<CAPTION>
For the six For the
months ended year ended
June 30, 1994 December 31, 1993
-------------- -----------------
<S> <C> <C>
Shares sold ................................. 287,758,481 626,959,256
Shares issued in reinvestment of dividends... 2,329,203 4,963,011
------------- -------------
290,087,684 631,922,267
Shares repurchased .......................... (280,277,666) (668,885,244)
------------- -------------
Net increase (decrease) in shares
outstanding .............................. 9,810,018 (36,962,977)
============= ============
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<CAPTION>
For the six
months ended For the year ended December 31,
June 30, 199 ------------------------------------------------
(unaudited) 1993 1992 1991 1990 1989
--------- ----- ----- ----- ---- -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of period ....... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Net investment income 0.010 0.018 0.023 0.037 0.049 0.056
Less dividends from net
investment income ..... (0.010) (0.018) (0.023) (0.037) (0.049) (0.056)
------- ------- ------- ------- ------ ------
Net asset value,
end of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN ..... 0.88%(1) 1.78% 2.37% 3.77% 5.04% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands)... $260,868 $251,059 $288,044 $332,426 $361,144 $341,682
Ratio of expenses to
average net assets ..... 0.72%(2) 0.71% 0.73% 0.70% 0.71% 0.68%
Ratio of net investment
income to average
net assets ........... 1.76%(2) 1.76% 2.35% 3.70% 4.89% 5.56%
<FN>
- - ------
(1) Not annualized
(2) Annualized
</TABLE>
See Notes to Financial Statements
<PAGE>
TRUSTEES
- - -------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
- - -------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Katherine H. Stromberg
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
- - -------------------------
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311-3977
LEGAL COUNSEL
- - -------------------------
Sheldon Curtis
Two World Trade Center
New York, New York 10048
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 not 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
prospecuts of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
CALIFORNIA TAX-FREE
DAILY INCOME TRUST
Semiannual Report
June 30, 1994
