<PAGE> 1
MUNICIPAL INCOME OPPORTUNITIES TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
We are pleased to present the semiannual report on the operations of
Municipal Income Opportunities Trust (NYSE symbol: OIA) for the six months ended
November 30, 1993.
MARKET CONDITIONS
Long-term interest rates were near their lowest levels in almost 20 years
for much of the period under review. The passage and signing of the Clinton
administration's Revenue Reconciliation Act during the summer made higher
marginal income tax rates a reality and strengthened demand for tax-exempt
bonds. Over the past six months, municipal bond yields, as measured by The Bond
Buyer Revenue Bond Index, fell 77 basis points from 6.48 percent to 5.71
percent.
Municipal issuers continued to take advantage of lower interest rates by
refunding older, higher-coupon debt at an unprecedented pace. A new record for
underwriting volume has already been set this year. The total of $261 billion
issued during the first 11 months of 1993 surpassed the previous high of $235
billion for all of 1992. Refundings accounted for two-thirds of total new-issue
sales. Underwritings backed by insurance represented 37 percent of the new-issue
market.
PERFORMANCE
Municipal Income Opportunities Trust's total returns for the six-month and
trailing 12-month periods ended November 30, 1993 were 3.76 percent and 13.22
percent, respectively, based on a closing New York Stock Exchange (NYSE) market
price of $8.25 per share.
We anticipate that the change in investment policy approved by shareholders
at the end of February will result in a gradual upgrading of portfolio quality
with improved prospects for timely payment of interest and principal. However,
10 credits representing 4.4 percent of the Fund's assets remained non-performing
at the end of the period. These loans were in the nursing and health related,
multi-family housing and industrial development/pollution control revenue
sectors. In the coming months we will continue our efforts to either liquidate
or rehabilitate problem loans.
On November 30, 1993, the Fund declared a monthly dividend of $0.0525 per
share payable on December 23, 1993 to shareholders of record on December 10,
1993. For the six-month period, OIA paid shareholders income dividends totaling
$0.315 per share. The Fund has maintained its level of monthly dividend payments
despite the persistent decline in interest rates. Future dividend payments,
however, could be affected by redemptions or sales of older, high-coupon bonds
with reduced call protection.
<PAGE> 2
PORTFOLIO STRUCTURE
The Fund remained fully invested in long-term municipal securities. The
portfolio was diversified among 11 municipal sectors and 55 separate issuers. In
keeping with OIA's primary objective of providing high current income, non-rated
securities represented 78 percent of long-term holdings. The portfolio's three
largest municipal sectors were hospital, industrial development/pollution
control and nursing and health related facilities revenue bonds. These sectors
represent 58 percent of municipal bond investments. The average maturity and
call protection of the Fund's long-term holdings were 21 years and 7 years,
respectively. Bonds subject to the alternative minimum tax comprised 14 percent
of the portfolio.
We would like to remind you that the Trustees have approved a procedure
whereby the Fund, when appropriate, may attempt to reduce or eliminate a market
value discount from net asset value by repurchasing shares in the open market or
in privately negotiated transactions at a price not above market value, if any,
or net asset value, whichever is lower at the time of purchase.
We appreciate your support of Municipal Income Opportunities 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
<PAGE> 3
MUNICIPAL INCOME OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS November 30, 1993 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (94.4%)
GENERAL OBLIGATION (1.9%)
$ 2,000 New York City, New York, 1994 Ser D.......................... 5.75 % 8/15/10 $ 1,948,180
1,395 Southwest Travis County Road District #1, Texas, Ser 1985
(Prerefunded).............................................. 10.625 9/ 1/09 1,555,551
------------
3,503,731
------------
EDUCATIONAL FACILITIES REVENUE (0.5%)
1,000 New York State Dormitory Authority, State University Refg Ser
1993 A..................................................... 5.25 5/15/15 937,590
------------
HOSPITAL REVENUE (9.0%)
2,000 Corona, California, Vista Hospital System Inc Ser 1992 B
COPs....................................................... 9.50 7/ 1/20 2,190,780
3,500 Wilmington, Delaware, Osteopathic Hospital Association of
Delaware/Riverside Hospital Ser A 1988 (Prerefunded)....... 10.20 10/ 1/18 4,444,300
Illinois Health Facilities Authority,
1,600 Delnor Community Hospital Ser 1989 (Prerefunded)........... 8.00 5/15/19 1,902,832
1,065 Hinsdale Hospital Ser 1990 C............................... 9.50 11/15/19 1,302,932
1,935 Hinsdale Hospital Ser 1990 C (Prerefunded)................. 9.50 11/15/19 2,537,191
1,995 Philadelphia Hospitals & Higher Education Facilities
Authority, Pennsylvania, Methodist Hospital Ser A.......... 9.00 7/ 1/10 2,129,064
1,990 Buena Vista Industrial Development Authority, Virginia,
Stonewall Jackson Hospital Ser 1987........................ 8.375 11/ 1/14 2,133,777
------------
16,640,876
------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL
REVENUE (19.2%)
2,000 Delaware Economic Development Authority, Syntek Inc Ser 1989
(AMT)(a)................................................... 11.25 5/ 1/09 20,000
485 Metropolitan Washington Airports Authority, District of
Columbia, Caterair Intl Corp Ser 1991 (AMT)................ 10.125 9/ 1/11 517,199
Broward County, Florida, Graphic Dynamics Inc
1,740 Ser 1989 A (AMT)(a)........................................ 10.625 3/ 1/00 417,600
5,960 Ser 1989 B (AMT)(a)........................................ 10.625 3/ 1/10 1,430,400
1,595 Illinois Development Finance Authority, Custom Tapes Inc
Refg Ser 1989.............................................. 10.50 5/ 1/19 1,630,887
3,580 Columbus, Indiana, PCL Packaging - Midwest Inc
Refg Ser 1988 (AMT)(a)..................................... 10.50 12/ 1/00 1,432,000
4,060 Detroit Economic Development Corporation, Michigan, North
Industrial Park LP Ser 1989................................ 11.375 2/15/14 4,429,866
1,730 Michigan Strategic Fund, Kasle Steel Corp Ser 1989 (AMT)..... 9.375 10/ 1/06 1,904,624
5,000 Cleveland, Ohio, Continental Airlines Inc Ser 1990 (AMT)..... 9.00 12/ 1/19 5,169,300
2,000 Dayton, Ohio, Emery Air Freight Corp Ser 1988 A.............. 12.50 10/ 1/09 2,290,000
1,250 Zanesville - Muskingum County Port Authority, Ohio, Anchor
Glass Ser 1989 B (AMT)..................................... 10.25 12/ 1/08 1,372,075
2,354 Butler County Industrial Development Authority, Pennsylvania,
Morgan Management Co Ser 1976.............................. 8.75 11/15/03 2,581,828
4,270 East Hempfield Township Industrial Development Authority,
Pennsylvania, Herley Microwave System Inc Ser 1989 A....... 10.40 6/ 1/04 4,741,280
Lexington County, South Carolina, Ellett Brothers
2,850 Refg Ser 1988.............................................. 10.625 9/ 1/02 3,070,647
4,250 Refg Ser 1988.............................................. 10.625 9/ 1/08 4,581,245
------------
35,588,951
------------
MORTGAGE REVENUE -- MULTI-FAMILY (5.5%)
Broward County, Florida,
1,600 Green Turtle Apts Ser 1989 B (AMT)(a)...................... 10.50 2/ 1/19 320,000
2,500 Pinewood Heights Apts Ser 1989 A (AMT)(a).................. 10.25 2/ 1/19 500,000
2,000 Dade County Housing Finance Authority, Florida, Arena Square
North & South 1989 Ser 2 (AMT)(a).......................... 10.25 5/ 1/19 1,280,000
</TABLE>
<PAGE> 4
MUNICIPAL INCOME OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS November 30, 1993 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<C> <S> <C> <C> <C>
Washington County Housing & Redevelopment Authority,
Minnesota, Courtly Park Townhomes
$ 3,885 Ser 1989 A................................................. 9.75 % 6/15/19 $ 2,408,700
1,165 Ser 1989 A (AMT)........................................... 10.25 6/15/19 722,300
24,080 Ser 1989 B................................................. 0.00 6/15/19 963,199
8,678 Ser 1989 B (AMT)........................................... 0.00 6/15/19 347,115
White Bear Lake, Minnesota, White Bear Woods Apts Phase II
3,715 Refg 1989 Ser A............................................ 9.75 6/15/19 2,600,500
23,786 Refg 1989 Ser B............................................ 0.00 6/15/19 1,010,902
------------
10,152,716
------------
MORTGAGE REVENUE -- SINGLE FAMILY (11.6%)
5,000 Alaska Housing Finance Corporation, Ins 1993 1st Ser......... 5.90 12/ 1/33 4,950,000
64,658 San Francisco, California, Ser 1982.......................... 0.00 10/ 1/14 6,806,610
875 Broward County Housing Finance Authority, Florida, Home Ser
1989 A..................................................... 10.00 10/ 1/03 895,055
67,920 New Hampshire Housing Finance Authority, Residential 1983 Ser
B.......................................................... 0.00 1/ 1/15 7,315,663
1,500 Rhode Island Housing & Mortgage Finance Corporation,
Homeownership 1988 Ser 1 - B (AMT)......................... 8.40 10/ 1/22 1,629,615
------------
21,596,943
------------
NURSING & HEALTH RELATED FACILITIES REVENUE (27.0%)
1,235 Vista, California, Long-Term Care Foundation of America
Ser 1989 COPs(a)(c)........................................ 9.875 1/ 1/20 741,000
Escambia County, Florida, Pensacola Care Development Centers
2,105 Ser 1989................................................... 10.25 7/ 1/11 2,401,616
9,225 Ser 1989 A................................................. 10.25 7/ 1/11 10,524,895
9,000 Flagler County Industrial Development Authority, Florida,
RHA/South Florida Properties Inc Ser 1988 A................ 10.50 12/ 1/18 9,594,720
1,500 Winchester, Indiana, Hoosier Care II Inc Ser 1990............ 10.375 6/ 1/20 1,610,640
2,565 Jefferson County, Kentucky, AHF/Kentucky - Iowa Inc Ser
1990....................................................... 10.25 1/ 1/20 2,791,438
1,600 Westside Habilitation Center, Louisiana Intermediate Care
Facility for the Mentally Retarded Refg Ser 1993........... 8.375 10/ 1/13 1,628,016
3,600 Massachusetts Industrial Finance Agency, Vinfen Corp Ser
1993(when-issued).......................................... 7.10 11/15/18 3,591,000
6,400 McCurtain County Development Authority, Oklahoma, Heartway
Corp Ser 1989 A - 2........................................ 10.25 3/ 1/19 6,208,000
1,000 Bucks County Industrial Development Authority, Pennsylvania,
RHA/Mill Run Ser 1989...................................... 10.00 7/ 1/00 790,000
1,490 Maury County Health & Educational Facilities Board,
Tennessee, Southern Healthcare/Heritage Manor of Monteagle
Ser 1990E.................................................. 10.50 3/ 1/20 1,605,937
4,790 Kirbyville, Health Facilities Development Corporation, Texas,
Heartway III Corp Ser 1988 A............................... 11.25 3/20/21 4,167,300
3,995 North Central Texas Health Facilities Development
Corporation, C C Young Memorial Home Ser 1988.............. 10.50 12/ 1/13 4,356,548
------------
50,011,110
------------
PUBLIC FACILITIES REVENUE (3.1%)
Jacksonville, Florida, Greater Jacksonville Fair Assoc.
940 Ser 1989................................................... 8.875 3/ 1/94 963,697
1,025 Ser 1989................................................... 8.875 3/ 1/95 1,048,575
1,115 Ser 1989................................................... 8.875 3/ 1/96 1,140,645
1,215 Ser 1989................................................... 8.875 3/ 1/97 1,242,945
1,320 Ser 1989................................................... 8.875 3/ 1/98 1,350,360
1,120 LaSalle County Jail Facilities Finance Corporation, Texas,
Criminal Detention Center Ser 1989(a)...................... 9.75 8/ 1/09 112
------------
5,746,334
------------
RETIREMENT FACILITIES & LIFECARE REVENUE (9.8%)
1,000 Colorado Health Facilities Authority, Liberty Heights Ser
A.......................................................... 10.00 7/ 1/19 550,000
Connecticut Development Authority, Seabury Life Care
3,230 Ser 1991................................................... 10.00 9/ 1/04 3,509,104
1,000 Ser 1991................................................... 10.00 9/ 1/16 1,086,410
</TABLE>
<PAGE> 5
MUNICIPAL INCOME OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS November 30, 1993 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- ------------
<C> <S> <C> <C> <C>
$ 4,965 Volusia County Health Facilities Authority, Florida, John
Knox Village Center 1988 Ser A(b).......................... 11.125% 9/ 1/17 $ 4,369,200
5,919 Ann Arbor Economic Development Corporation, Michigan, Glacier
Hills Inc Ser 1989......................................... 10.375 1/15/19 5,164,327
3,000 Independence Industrial Development Authority, Missouri,
Greenbriar Meadows Ser 1989 A (AMT)(a)..................... 10.25 8/ 1/19 2,100,000
1,500 Charlotte Housing Authority, North Carolina, Merrywood Senior
Adult Community Ser 1989 A (AMT)........................... 9.75 5/ 1/19 1,440,000
------------
18,219,041
------------
TAX ALLOCATION (3.9%)
2,000 Bridgeview, Illinois, Ser 1991............................... 9.50 1/ 1/11 2,155,200
4,800 Crestwood, Illinois, Ser 1988................................ 10.50 12/ 1/08 5,046,240
------------
7,201,440
------------
TRANSPORTATION FACILITIES REVENUE (2.9%)
4,500 Denver, Colorado, Airport Ser 1991 A (AMT)................... 8.75 11/15/23 5,323,680
------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $190,251,706)............................... 174,922,412
------------
SHORT-TERM MUNICIPAL OBLIGATIONS (5.0%)
5,200 Houston Health Facilities Development Corporation, Texas,
Methodist Hospital (Tender 12/1/93)........................ 1.90* 12/ 1/14 5,200,000
4,000 Texas Water Development Board, Ser 1992 A (Tender 12/1/93)... 1.90* 3/ 1/15 4,000,000
------------
TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS
(IDENTIFIED COST $9,200,000)........................................... 9,200,000
------------
TOTAL INVESTMENTS (IDENTIFIED COST $199,451,706)(D).................... 99.4% 184,122,412
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES......................... 0.6 1,106,427
------ ------------
NET ASSETS............................................................. 100.0% $185,228,839
------ ------------
------ ------------
</TABLE>
- ---------------
* Variable or floating rate securities. Coupon rate shown reflects current
rate.
(a) Non-income producing, bond in default.
(b) Partial interest paid. Interest income is recorded as received.
(c) Resale is restricted to qualified accredited investors.
(d) The aggregate cost for federal income tax purposes is $199,451,706; the
aggregate gross unrealized appreciation is $10,631,911 and the aggregate
gross unrealized depreciation is $25,961,205, resulting in net unrealized
depreciation of $15,329,294.
See Notes to Financial Statements
<PAGE> 6
MUNICIPAL INCOME OPPORTUNITIES TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1993 (unaudited)
- -------------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $199,451,706) (Note
1)....................................... $ 184,122,412
Cash....................................... 152,726
Receivables for:
Interest................................. 4,380,219
Investments sold......................... 274,456
Prepaid expenses........................... 211,078
-------------
TOTAL ASSETS....................... 189,140,891
-------------
LIABILITIES:
Payable for investments purchased.......... 3,635,500
Investment advisory fee payable (Note 2)... 80,941
Administration fee payable (Note 3)........ 48,565
Accrued expenses (Note 4).................. 147,046
-------------
TOTAL LIABILITIES.................. 3,912,052
-------------
NET ASSETS:
Paid in capital............................ 202,537,509
Accumulated realized loss on
investments - net........................ (2,644,068)
Unrealized depreciation of investments -
net...................................... (15,329,294)
Accumulated undistributed investment
income - net............................. 664,692
-------------
NET ASSETS......................... $ 185,228,839
-------------
-------------
NET ASSET VALUE PER SHARE,
21,460,172 shares outstanding (unlimited
shares authorized of $.01 par value)..... $8.63
-----
-----
STATEMENT OF OPERATIONS For the six months
ended November 30, 1993 (unaudited)
- -------------------------------------------
INVESTMENT INCOME:
INTEREST INCOME........................... $ 8,297,431
-------------
EXPENSES
Investment advisory fee (Note 2)......... 462,759
Administration fee (Note 3).............. 277,655
Professional fees........................ 90,878
Transfer agent fees and expenses (Note
4)..................................... 73,200
Shareholder reports and notices (Note
4)..................................... 26,535
Registration fees........................ 15,863
Trustees' fees and expenses (Note 4)..... 15,260
Organizational expenses (Note 1)......... 2,651
Other.................................... 34,386
-------------
TOTAL EXPENSES......................... 999,187
-------------
INVESTMENT INCOME - NET.............. 7,298,244
-------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- NET (NOTE 1):
Realized loss on investments - net....... (2,614,441)
Change in unrealized depreciation on
investments - net...................... 3,205,341
-------------
NET GAIN ON INVESTMENTS................ 590,900
-------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.......... $ 7,889,144
-------------
-------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six
months ended For the
November 30, 1993 year ended
(unaudited) May 31, 1993
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income - net............................................... $ 7,298,244 $ 13,848,270
Realized gain (loss) on investments - net............................. (2,614,441) 525,048
Change in unrealized depreciation on investments - net................ 3,205,341 (8,174,711)
------------------- -------------------
Net increase in net assets resulting from operations.............. 7,889,144 6,198,607
------------------- -------------------
Dividends and distributions to shareholders from:
Investment income - net............................................... (6,759,954) (14,250,702)
Realized gain on investments - net.................................... -0- (537,654)
------------------- -------------------
Total dividends and distributions....................................... (6,759,954) (14,788,356)
------------------- -------------------
Transactions in shares of beneficial interest - net decrease (Note 6)... -0- (2,161,157)
------------------- -------------------
Total increase (decrease)......................................... 1,129,190 (10,750,906)
NET ASSETS:
Beginning of period..................................................... 184,099,649 194,850,555
------------------- -------------------
END OF PERIOD (including undistributed net investment income of $664,692
and $126,402, respectively)............................................ $ 185,228,839 $ 184,099,649
------------------- -------------------
------------------- -------------------
</TABLE>
See Notes to Financial Statements
<PAGE> 7
MUNICIPAL INCOME OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Municipal Income Opportunities Trust
(the "Fund") is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a diversified, closed-end management investment company. It was
organized on June 22, 1988 as a Massachusetts business trust and commenced
operations on September 19, 1988.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued for the Fund
by an outside independent pricing service approved by the Fund's Trustees.
The pricing service has informed the Fund that in valuing the Fund's
portfolio securities, it uses both a computerized grid matrix of tax-exempt
securities and evaluations by its staff, in each case based on information
concerning market transactions and quotations from dealers which reflect
the bid side of the market each day. The Fund's portfolio securities are
thus valued by reference to a combination of transactions and quotations
for the same or other securities believed to be comparable in quality,
coupon, maturity, type of issue, call provisions, trading characteristics
and other features deemed to be relevant.
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 premiums and original issue
discounts. Additionally, with respect to market discount on bonds purchased
after April 30, 1993, a portion of any capital gain realized upon
disposition is recharacterized as taxable investment income. Realized gains
and losses on security transactions are determined on the identified cost
method. Interest income is accrued daily, except where collection is not
expected.
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 nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the ex-dividend date.
E. Organizational Expenses -- The Fund's Administrator paid the
organizational expenses of the Fund in the amount of $44,615. The Fund
reimbursed the Administrator for such expenses which were fully amortized
as of September 18, 1993.
2. INVESTMENT ADVISORY AGREEMENT -- Pursuant to an Investment Advisory
Agreement (the "Advisory Agreement") with Dean Witter InterCapital Inc. (the
"Investment Adviser"), the Fund pays its Investment Advisor an advisory fee,
calculated weekly and payable monthly, by applying the annual rate of 0.50% to
the Fund's average weekly net assets.
Under the terms of the Advisory Agreement, the Investment Adviser manages
the Fund's assets. Also, the Investment Adviser pays the salaries of all
personnel, including officers of the Fund, who are employees of the Investment
Adviser.
3. ADMINISTRATION AGREEMENT -- Pursuant to an Administration Agreement (the
"Administration Agreement") with Dean Witter InterCapital Inc. (the
"Administrator"), the Fund pays its Administrator an administration fee,
calculated weekly and payable monthly, by applying the annual rate of 0.30% to
the Fund's average weekly net assets.
<PAGE> 8
MUNICIPAL INCOME OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
Under the terms of the Administration Agreement, the Administrator
maintains certain of the Fund's books and records and furnishes, at its own
expense, such office space, facilities, equipment, clerical help, bookkeeping
and certain legal services as the Fund may reasonably require in the conduct of
its business. In addition, the Administrator pays the salaries of all personnel,
including officers of the Fund, who are employees of the Administrator.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and the proceeds from sales of portfolio securities for the six months
ended November 30, 1993, excluding short-term investments, aggregated
$13,523,079 and $18,642,981, 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 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 November 30, 1993, included in Trustees' fees and expenses
in the Statement of Operations, amounted to $5,282. At November 30, 1993 the
Fund had an accrued pension liability of $37,446 which is included in accrued
expenses in the Statement of Assets and Liabilities.
Dean Witter Trust Company, an affiliate of the Investment
Adviser/Administrator, is the Fund's transfer agent. During the six months ended
November 30, 1993, the Fund incurred transfer agent fees and expenses of $73,200
of which $49,107 was payable at November 30, 1993.
Bowne & Co., Inc. is an affiliate of the Fund by virtue of a Common Fund
Trustee and Director of Bowne & Co. During the six months ended November 30,
1993 the Fund paid Bowne & Co., Inc. $4,578 for printing of shareholder reports.
5. FEDERAL INCOME TAX STATUS -- Capital losses incurred after October 31,
within the taxable year are deemed to arise on the first business day of the
Fund's next taxable year. The Fund incurred and elected to defer a net capital
loss of approximately $38,000 during such period in fiscal 1993. For the six
months ended November 30, 1993, the Fund incurred approximately $2,614,000 of
net capital losses.
6. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Par Capital
Value Paid in
of Excess of
Shares Shares Par Value
---------- -------- ------------
<S> <C> <C> <C>
Balance, May 31, 1992................................ 21,729,572 $217,295 $204,481,371
Treasury shares purchased and retired (weighted
average discount 8.79%)*........................... (269,400) (2,694) (2,158,463)
---------- -------- ------------
Balance, May 31, 1993 and November 30, 1993.......... 21,460,172 $214,601 $202,322,908
---------- -------- ------------
---------- -------- ------------
</TABLE>
- ---------------
* The Trustees have voted to retire the shares repurchased.
<PAGE> 9
MUNICIPAL INCOME OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
7. DIVIDENDS -- The Fund has declared the following dividends from net
investment income --
<TABLE>
<CAPTION>
Declaration Amount Per Record Payable
Date Share Date Date
------------------ ---------- ----------------- -----------------
<S> <C> <C> <C> <C>
November 30, 1993 $ 0.0525 December 10, 1993 December 23, 1993
December 28, 1993 $ 0.0525 January 7, 1994 January 21, 1994
</TABLE>
8. SELECTED QUARTERLY FINANCIAL DATA --
<TABLE>
<CAPTION>
Quarters Ended*
-----------------------------------
11/30/93 8/31/93
---------------- ----------------
Per Per
Total Share Total Share
------- ------ ------- ------
<S> <C> <C> <C> <C>
Total investment income................................................... $ 3,999 $ 0.19 $ 4,298 $ 0.20
Investment income - net................................................... 3,506 0.16 3,792 0.18
Realized and unrealized gain (loss) on investments - net.................. (23) (0.00) 614 0.03
</TABLE>
<TABLE>
<CAPTION>
Quarters Ended*
-------------------------------------------------------------------------
5/31/93 2/28/93 11/30/92 8/31/92
---------------- ---------------- ---------------- ----------------
Per Per Per Per
Total Share Total Share Total Share Total Share
------- ------ ------- ------ ------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income.............. $ 3,322 $ 0.15 $ 4,082 $ 0.19 $ 4,378 $ 0.20 $ 4,254 $ 0.20
Investment income - net.............. 2,708 0.12 3,575 0.17 3,852 0.18 3,713 0.17
Realized and unrealized gain (loss)
on investments - net............... (5,037) (0.23) 660 0.03 (674) (0.03) (2,599) (0.11)
</TABLE>
- ---------------
* Totals expressed in thousands of dollars.
<PAGE> 10
MUNICIPAL INCOME OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS (unaudited)
- --------------------------------------------------------------------------------
Selected data and ratios for a share of beneficial interest outstanding
throughout each period:
<TABLE>
<CAPTION>
For the
For the six period
months ended For the year ended May 31, September 19,
November 30, --------------------------------------------------- 1988* through
1993 1993 1992 1991 1990 May 31, 1989
------------ --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period................ $ 8.58 $ 8.97 $ 9.39 $ 9.44 $ 9.56 $ 9.40
------------ --------- --------- --------- --------- -------------
Investment
income - net........... 0.34 0.64 0.74 0.79 0.81 0.45
Realized and unrealized
gain (loss) on invest-
ments - net............ 0.03 (0.34) (0.43) (0.02) (0.09) 0.09
------------ --------- --------- --------- --------- -------------
Total from investment
operations............... 0.37 0.30 0.31 0.77 0.72 0.54
------------ --------- --------- --------- --------- -------------
Less dividends,
distributions and other
charges:
Dividends from net
investment income...... (0.32) (0.66) (0.73) (0.82) (0.84) (0.37)
Distributions from net
realized gain on
investments............ -0- (0.03) -0- -0- -0-** -0-
Offering costs charged
against capital........ -0- -0- -0- -0- -0- (0.01)
------------ --------- --------- --------- --------- -------------
Total dividends,
distributions and other
charges.................. (0.32) (0.69) (0.73) (0.82) (0.84) (0.38)
------------ --------- --------- --------- --------- -------------
Net asset value, end of
period................... $ 8.63 $ 8.58 $ 8.97 $ 9.39 $ 9.44 $ 9.56
------------ --------- --------- --------- --------- -------------
------------ --------- --------- --------- --------- -------------
Market value, end of
period................... $ 8.25 $ 8.25 $ 9.325 $ 9.875 $ 10.25 $ 10.50
------------ --------- --------- --------- --------- -------------
------------ --------- --------- --------- --------- -------------
TOTAL INVESTMENT RETURN+..... 3.76%(1) (4.71)% 2.64% 4.99% 6.11% 9.08%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........... $ 185,229 $ 184,100 $ 194,851 $ 202,418 $ 199,173 $ 194,698
Ratio of expenses to
average net assets....... 1.08%(2) 1.15% 1.08% 1.10% 1.10% 1.11%(2)
Ratio of net investment
income to average net
assets................... 7.89%(2) 7.27% 8.00% 8.37% 8.61% 7.03%(2)
Portfolio turnover rate.... 8% 2% 4% 7% 8% 9%
</TABLE>
- ---------------
* Commencement of operations.
** Includes distributions of $.0003 per share.
+ Total investment return is based upon the current market value on the first
and last day of each period reported. Dividends and distributions are
assumed to be reinvested at the prices obtained under the Fund's dividend
reinvestment plan. Total investment return does not reflect sales charges or
brokerage commissions.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
- --------------------------------------------------------------------------------
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.
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<PAGE> 12
TRUSTEES
Jack F. Bennett
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Albert T. Sommers
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
Price Waterhouse
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
MUNICIPAL
INCOME
OPPORTUNITIES
TRUST
Semiannual Report
November 30, 1993
