<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - - - - --------------------------------------------------------------------------------
Demand for gold has leveled off since the close of Dean Witter Precious
Metals and Minerals Trust's fiscal year on October 31, 1993, when the Fund
produced a total return of 37.23 percent. Nonetheless, for the six-month period
ended April 30, 1994, the Fund still outperformed the Standard & Poor's 500
Index (S&P 500), posting a total return of 0.52 percent, versus -2.30 percent.
For the trailing 12 months ended April 30, 1994, the Fund's total return was an
attractive 12.39 percent. Over the same period, the S&P 500 registered a total
return of 5.31 percent.
THE GOLDEN ROAD GETS A LITTLE BUMPY
During the six months ended April 30, 1994, the spot price of gold traded in
a range of $368-$395 per ounce, closing the period at $376.60. Precious metal
prices in general drifted during the first half of the Fund's current fiscal
year as a result of several factors:
(1) Historically, the first quarter of a new year is marked by
seasonally weak demand for gold and 1994 proved no different, as higher mine
output and lower jewelry demand shifted bullion markets into surplus in late
1993 and early 1994.
(2) Signs of substantial economic strength and heightened inflationary
fears became apparent, inducing the Federal Reserve Board to change its
stance on monetary policy by raising the federal-funds rate -- the interest
rate banks charge each other for overnight loans -- from 3.00 percent to
3.75 percent in three separate moves starting in early February. (Subsequent
to the period under review, the Federal Reserve Board initiated another
round of tightening with a 50 basis point increase in both the federal-funds
rate and the discount rate -- the interest rate the Federal Reserve charges
member banks for loans.) This shift toward higher interest rates made owning
a non-interest-bearing investment, such as gold bullion, a less attractive
investment.
(3) Concerns over probable central bank gold sales.
(4) A peaceful conclusion to the first multi-race elections in South
Africa, which temporarily subdued speculative demand.
(5) Remarks by Federal Reserve Board Chairman Alan Greenspan regarding
gold's link to inflation put a damper on the gold sector, which was worried
the central bank would continue to raise interest rates in an effort to halt
those factors that would normally fuel a gold rally.
PORTFOLIO STRATEGY
The Fund remains committed to its strategy of investing in companies that
exhibit production growth, exploration potential, solid balance sheets and
superior management. Because of uncertainty created by the proposed Clinton
Mining Royalty -- a tax to be levied on companies that mine U.S. lands not
patented for mining -- the Fund has shifted some of its assets to companies that
mine for gold in Australia, Ghana and South America. New positions in this
category are Ashanti Goldfields (U.K.), Golden Star Resources (Canada), Phelps
Dodge (U.S.), and Australian gold producers Normandy Poseidon, Plutonic
Resources and Mount Edon Gold. Other core portfolio positions include American
Barrick Resources Corp., Freeport McMoran Copper & Gold, Newmont Mining Corp.
and Macraes Mining Co. Ltd.
<PAGE>
LOOKING AHEAD
Because of the increased speculation built into the precious metals markets
by the combination of hedge funds, commodity funds and the buying and selling of
gold bullion by central banks, we expect the spot price range of gold to trend
higher, albeit with increased volatility. Aside from the speculative nature of
gold, we remain optimistic on the fundamentals of the gold sector. For example,
the gold market still has a favorable supply/demand imbalance, which supports
higher gold prices; thus, as world economies improve, so too should the demand
for gold. In addition, the current weakness of the U.S. dollar, and the
perception that oil prices have bottomed, could bring added support for gold
prices.
If the Federal Reserve Board is unsuccessful in slowing inflation in the
face of continuing economic expansion, investors will most likely buy gold as a
hedge. If the central bank successfully averts inflationary pressure, the
synchronized worldwide recovery will be prolonged and jewelry demand for gold
and other precious metals will continue to support rising prices.
We appreciate your support of Dean Witter Precious Metals and Minerals Trust
and look forward to continuing to serve your investment objectives.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- - - - - ------------ ------------
<C> <S> <C>
COMMON STOCKS (88.0%)
AUSTRALIA (16.0%)
DIAMOND MINING
200,000 Ashton Mining Ltd. ...... $ 435,235
------------
GOLD
150,000 Central Norseman Gold
Corp.*.................. 88,830
308,500 Delta Gold*.............. 671,349
300,000 Dome Resources*.......... 122,008
400,000 Dominion Mining Ltd. .... 122,723
652,385 Gold Mines of Kalgoorlie
Ltd. ................... 591,156
250,000 Highlands Gold Ltd. ..... 228,320
520,000 Homestake Gold of
Australia Ltd.*......... 686,388
363,300 Macreas Mining Co.
Ltd. ................... 622,115
250,000 M.I.M. Holdings Ltd. .... 515,504
150,000 Mount Edon Gold.......... 197,997
160,000 Newcrest Mining Ltd. .... 678,110
218,300 Niugini Mining Ltd.* .... 880,027
520,000 Normandy Poseidon
Ltd. ................... 756,880
103,950 North Flinders Mines
Ltd. ................... 741,684
588,800 Pancontinental Mining*... 655,369
360,000 Placer Pacific Ltd. ..... 701,228
150,000 Plutonic Resources
Ltd. ................... 770,580
100,000 Sons of Gwalia Ltd. ..... 594,345
140,000 Western Mining Corp
Holdings Ltd. .......... 699,230
------------
10,323,843
------------
TOTAL AUSTRALIA.......... 10,759,078
------------
CANADA (42.9%)
GOLD
125,000 Agnico Eagle Mines
Ltd. ................... 1,359,375
150,000 American Barrick
Resources Corp. ........ 3,450,000
150,000 Cambior, Inc............. 1,937,179
85,200 Dayton Mining Corp. ..... 261,614
110,000 Echo Bay Mines Ltd. ..... 1,278,750
175,000 Glamis Gold Ltd. ........ 1,071,875
36,600 Golden Knight Resources,
Inc..................... 247,050
33,000 Golden Star Res Ltd
CDA*.................... 457,875
185,000 Hemlo Gold Mines,
Inc. ................... 1,670,761
120,000 Horsesham Corp. ......... 1,605,000
225,000 Lac Minerals Limited
Co. .................... 1,884,375
160,450 New Royal Oak Mine,
Inc.*................... 681,052
160,000 Pegasus Gold, Inc. ...... 2,620,000
140,000 Placer Dome, Inc. ....... 2,870,000
<CAPTION>
NUMBER OF
SHARES VALUE
- - - - - ------------ ------------
<C> <S> <C>
232,000 Prime Resource Group,
Inc.* .................. $ 1,508,561
150,000 Rayrock Yellowknife
Resources, Inc.* ....... 2,072,647
150,000 Teck Corp. (B Shares).... 2,573,875
240,000 TVX Gold, Inc.*.......... 1,365,000
------------
TOTAL CANADA............. 28,914,989
------------
UNITED KINGDOM (1.5%)
GOLD
45,000 Ashanti Goldfields
Ltd. ................... 1,001,250
------------
UNITED STATES (27.6%)
COPPER
20,000 Phelps Dodge............. 1,107,500
------------
GOLD
110,000 Amax Gold, Inc........... 770,000
165,000 Battle Mountain Gold Co.
(Class A)............... 1,608,750
125,000 Canyon Resources
Corp.* ................. 359,375
100,000 Freeport -- McMoran
Copper & Gold (Class
A)...................... 2,375,000
155,000 Homestake Mining Co. .... 2,945,000
50,000 Newmont Gold Co. ........ 2,037,500
73,637 Newmont Mining Corp. .... 3,037,563
------------
13,133,188
------------
RAILROADS
30,000 Santa Fe Pacific......... 667,500
------------
SILVER
105,000 Coeur D'Alene Mines
Corp. .................. 1,981,875
150,000 Hecla Mining Co.*........ 1,706,250
------------
3,688,125
------------
TOTAL UNITED STATES...... 18,596,313
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST
$57,097,518)............ 59,271,630
------------
NON-CONVERTIBLE PREFERRED STOCK (1.1%)
UNITED STATES
20,600 Freeport -- McMoran
Copper (Identified Cost
$804,442)............... 767,350
------------
WARRANTS (0.2%)
CANADA
17,000 Prime Resources Group,
Inc. (Identified Cost
$117,351)............... 110,541
------------
</TABLE>
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1994 (UNAUDITED) (CONTINUED)
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- - - - - ----------- ----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (4.5%)
$ 500 U.S. Treasury Bond, 6.25% due
2/15/03...................... $ 474,375
1,200 U.S. Treasury Bond, 7.25% due
8/15/22...................... 1,173,750
500 U.S. Treasury Bond, 6.25% due
8/15/23...................... 435,547
325 U.S. Treasury Note, 7.875% due
11/15/99..................... 342,266
500 U.S. Treasury Note, 8.75% due
8/15/00...................... 549,531
----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS (IDENTIFIED COST
$3,077,762).................. 2,975,469
----------
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- - - - - ----------- ----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A)(8.3%)
COMMERCIAL PAPER (4.6%)
FINANCIAL SERVICES
$3,100 Chevron Oil Financial Services
Co. 3.682% due 5/5/94
(Amortized Cost
$3,098,669).................. $3,098,669
----------
U.S. GOVERNMENT AGENCY (3.7%)
2,500 Federal National Mortgage
Association 3.643% due 5/2/94
(Amortized Cost
$2,499,811).................. 2,499,811
----------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST
$5,598,480).................. 5,598,480
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED COST
$66,695,553)(B).................................. 102.1% 68,723,470
LIABILITIES IN EXCESS OF OTHER ASSETS............. (2.1) (1,400,647)
-------- ---------------
NET ASSETS........................................ 100.0% $67,322,823
-------- ---------------
-------- ---------------
<FN>
- - - - - ---------------
* NON-INCOME PRODUCING SECURITY.
(A) SECURITIES WERE PURCHASED ON A DISCOUNT BASIS. THE INTEREST RATES SHOWN
HAVE BEEN ADJUSTED TO REFLECT A BOND EQUIVALENT YIELD.
(B) THE AGGREGATE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS
$66,902,761; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,754,017 AND
THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $1,933,308, RESULTING IN
NET UNREALIZED APPRECIATION OF $1,820,709.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS
- - - - - --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1994 (UNAUDITED)
- - - - - --------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (identified
cost $66,695,553) (Note 1)....................... $ 68,723,470
Receivable for:
Shares of beneficial interest sold.............. 213,336
Dividends....................................... 52,631
Interest........................................ 51,971
Deferred organizational expenses (Note 1)......... 30,428
Prepaid expenses.................................. 424
---------------
TOTAL ASSETS.............................. 69,072,260
---------------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased....... 1,434,617
Plan of distribution fee (Note 3)............... 56,747
Investments purchased........................... 54,062
Investment management fee (Note 2).............. 45,398
Payable to bank................................... 84,734
Accrued expenses (Note 4)......................... 73,879
---------------
TOTAL LIABILITIES......................... 1,749,437
---------------
NET ASSETS:
Paid-in-capital................................... 64,113,412
Accumulated net investment loss................... (272,260)
Accumulated undistributed net realized gains...... 1,453,695
Net unrealized appreciation....................... 2,027,976
---------------
NET ASSETS................................ $ 67,322,823
---------------
---------------
NET ASSET VALUE PER SHARE, 6,210,994 shares
outstanding (unlimited authorized shares of $.01
par value)....................................... $10.84
---------------
---------------
</TABLE>
STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED APRIL 30, 1994 (UNAUDITED)
- - - - - --------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Dividends (net of $20,066 in foreign
withholding tax)............................. $ 252,382
Interest...................................... 183,178
---------------
TOTAL INCOME.............................. 435,560
---------------
EXPENSES
Plan of distribution fee (Note 3)............. 304,410
Investment management fee (Note 2)............ 243,528
Transfer agent fees and expenses.............. 39,711
Custodian fees................................ 28,101
Registration fees............................. 25,928
Professional fees............................. 23,983
Shareholder reports and notices............... 16,958
Organizational expenses (Note 1).............. 11,896
Trustees' fees and expenses................... 11,354
Other......................................... 2,018
---------------
TOTAL EXPENSES............................ 707,887
---------------
NET INVESTMENT LOSS................... (272,327)
---------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) (Note 1):
Net realized gain on:
Investments................................... 1,747,278
Foreign exchange transactions................. 2,697
---------------
1,749,975
---------------
Net change in unrealized appreciation on:
Investments................................... (3,104,395)
Translation of other assets and liabilities
denominated in foreign currencies............ (209)
---------------
(3,104,604)
---------------
NET LOSS.................................. (1,354,629)
---------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $ (1,626,956)
---------------
---------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE
APRIL 30, 1994 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1993
---------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss......................... $ (272,327) $ (284,076)
Net realized gain on investments and foreign
exchange transactions....................... 1,749,975 68,442
Net change in unrealized appreciation or
depreciation................................ (3,104,604) 6,947,645
---------------- ------------------
Net (decrease) increase in net assets
resulting from operations.................. (1,626,956) 6,732,011
Distributions to shareholders from net realized
gain on investments and foreign exchange
transactions................................... (85,434) - 0 -
Net increase from transactions in shares of
beneficial interest (Note 5)................... 23,831,358 23,336,779
---------------- ------------------
Total Increase............................ 22,118,968 30,068,790
NET ASSETS:
Beginning of period............................. 45,203,855 15,135,065
---------------- ------------------
END OF PERIOD (including a net investment loss
of $272,260 and undistributed net investment
income of $67, respectively).................. $67,322,823 $45,203,855
---------------- ------------------
---------------- ------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- - - - - --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter Precious Metals and
Minerals 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 December 28, 1989 as a Massachusetts business trust
and commenced operations on August 6, 1990.
The following is a summary of the significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) an equity portfolio security listed or
traded on the New York or American Stock Exchange or other domestic or
foreign stock exchange is valued at its latest sale price on that exchange
prior to the time when assets are valued; if there were no sales that day,
the security is valued at the latest bid price. In cases where securities
are traded on more than one exchange, the securities are valued on the
exchange designated as the primary market by the Trustees; (2) all other
portfolio securities for which over-the-counter market quotations are
readily available are valued at the latest bid price; (3) when market
quotations are not readily available, including circumstances under which it
is determined by 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); and (4) the fair value of short-term debt securities which mature
at a date less than sixty days subsequent to the valuation date are
determined on an amortized cost or amortized value basis.
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 on the identified cost
method. Dividend income and other distributions are recorded on the
ex-dividend date, except for certain dividends from foreign securities which
are recorded as soon as the Fund is informed after the ex-dividend date.
Interest income is accrued daily.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward contracts
stated in foreign currencies are translated at the exchange rates at the end
of the period; and (2) purchases, sales, income and expenses are translated
at the rate of exchange prevailing on the respective dates of such
transactions. The resultant exchange gains and losses are included in the
Statement of Operations as realized and unrealized gain/ loss on foreign
exchange transactions. Pursuant to U.S. federal income tax regulations,
certain net foreign exchange gains/losses included in realized and
unrealized gain/loss in the Statement of Operations are included in or are a
reduction of ordinary income for federal income tax purposes. The Fund does
not isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the changes in the market prices
of the securities.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Fund may enter into
forward foreign currency contracts as a hedge against fluctuations in future
foreign exchange rates. All forward contracts are valued daily at the
appropriate exchange rates and any resulting unrealized currency gains or
losses are reflected in the Fund's accounts. The Fund records realized gains
or losses on delivery of the currency or at the time the forward contract is
extinguished (compensated) by entering into a closing transaction prior to
delivery.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - - - - --------------------------------------------------------------------------------
E. 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 income to its shareholders.
Accordingly, no federal income tax provision is required.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund 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 reclassifications.
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.
G. ORGANIZATIONAL EXPENSES -- The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately $120,000.
The Fund has reimbursed the Investment Manager for these costs, which have
been deferred and are being amortized by the Fund by the straight-line
method over a period not to exceed five years from the commencement of
operations.
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc., (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, accrued daily
and payable monthly, by applying the annual rate of 0.80% to the net assets of
the Fund determined as of the close of each business day.
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 the Fund are distributed by Dean Witter
Distributors Inc., (the "Distributor"), an affiliate of the Investment Manager.
The Fund adopted a Plan of Distribution (the "Plan"), pursuant to Rule 12b-1
under the Act, pursuant to which the Fund pays the Distributor compensation
accrued daily and payable monthly at the annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestments of dividends or capital gains
distributions), less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services it provides and the expenses borne
by it and others in the distribution of the Fund's shares, including the payment
of commissions for sales of the Fund's shares and incentive compensation to and
expenses of the account executives of Dean Witter Reynolds Inc., an affiliate of
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - - - - --------------------------------------------------------------------------------
the Investment Manager, and other employees or selected dealers who engage in or
support distribution of the Fund's shares or who service shareholders' accounts,
including overhead and telephone expenses, printing and distribution of
prospectuses and reports used in connection with the offering of the Fund's
shares, and preparation, printing and distribution of sales literature and
advertising materials.
Provided that the Plan continues in effect, any cumulative expenses incurred
by the Distributor, but not yet recovered, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.
The Distributor has informed the Fund that for the six months ended April
30, 1994, it received approximately $83,000 in contingent deferred sales charges
from redemptions of the Fund's shares. The Fund's shareholders pay such charges
which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and the proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 1994, aggregated
$32,972,048 and $12,762,229, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $1,530,391 and $519,844,
respectively. For the same period, the Fund paid Dean Witter Reynolds Inc.
$6,350 in brokerage commissions for portfolio transactions executed on behalf of
the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and the
Distributor, is the Fund's transfer agent. At April 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $5,000.
5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1994 OCTOBER 31, 1993
------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Sold................................. 5,604,517 $65,629,570 7,460,741 $73,891,501
Reinvestment of distributions........ 6,713 77,805 - 0- - 0-
---------- ------------ ---------- -----------
5,611,230 65,707,375 7,460,741 73,891,501
Repurchased.......................... (3,586,773) (41,876,017) (5,197,418) (50,554,722)
---------- ------------ ---------- -----------
Net increase......................... 2,024,457 $23,831,358 2,263,323 $23,336,779
---------- ------------ ---------- -----------
---------- ------------ ---------- -----------
</TABLE>
6. FEDERAL INCOME TAX STATUS -- As of October 31, 1993, the Fund had temporary
book/tax differences primarily attributable to capital loss deferrals on wash
sales and permanent book/tax differences primarily attributable to net operating
losses. To reflect reclassifications arising from permanent book/tax differences
as of October 31, 1993, accumulated net investment loss was credited $379,951,
accumulated undistributed net realized gains was charged $105,298 and paid-in-
capital was charged $274,653.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- - - - - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
AUGUST 6,
FOR THE YEAR ENDED 1990*
FOR THE SIX OCTOBER 31, THROUGH
MONTHS ENDED ----------------------------------- OCTOBER 31,
APRIL 30, 1994 1993 1992 1991 1990
-------------- --------- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period....... $ 10.80 $ 7.87 $ 8.59 $ 8.57 $ 10.00
------- --------- --------- ----------- -------
Net investment (loss) income............. (0.04) (0.04) (0.05) 0.06 0.05
Net realized and unrealized gain
(loss).................................. 0.10** 2.97 (0.62) 0.03 (1.48)
------- --------- --------- ----------- -------
Total from investment operations........... 0.06 2.93 (0.67) 0.09 (1.43)
------- --------- --------- ----------- -------
Less dividends and distributions:
Dividends from net investment income..... - 0 - - 0 - (0.04) (0.07) - 0 -
Distributions from capital gains......... (0.02) - 0 - (0.01) - 0 - - 0 -
------- --------- --------- ----------- -------
Total dividends and distributions.......... (0.02) - 0 - (0.05) (0.07) - 0 -
------- --------- --------- ----------- -------
Net asset value, end of period............. $ 10.84 $ 10.80 $ 7.87 $ 8.59 $ 8.57
------- --------- --------- ----------- -------
------- --------- --------- ----------- -------
TOTAL INVESTMENT RETURN+..................... 0.52%(1) 37.23% (7.97)% 1.23% (14.30)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $67,323 $45,204 $15,135 $11,246 $5,843
Ratio of expenses to average net assets.... 2.33%(2) 2.79% 3.30% 2.18%(4) 1.49%(2)(3)
Ratio of net investment (loss) income to
average net assets........................ (0.89)%(2) (1.07)% (0.74)% 0.93%(4) 2.99%(2)(3)
Portfolio turnover rate.................... 23 % 25 % 9 % 11 % 0 %
<FN>
- - - - - -------------
* COMMENCEMENT OF OPERATIONS.
** INCLUDES THE EFFECT OF CAPITAL SHARE TRANSACTIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) IF THE FUND HAD BORNE ALL EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
INVESTMENT MANAGER, THE ABOVE ANNUALIZED EXPENSE RATIO, AFTER APPLICATION
OF THE FUND'S EXPENSE LIMITATION, WOULD HAVE BEEN 3.50% AND THE ABOVE
ANNUALIZED NET INVESTMENT INCOME RATIO WOULD HAVE BEEN .98%.
(4) IF THE FUND HAD BORNE ALL EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
INVESTMENT MANAGER, THE ABOVE EXPENSE RATIO, AFTER APPLICATION OF THE
FUND'S EXPENSE LIMITATION, WOULD HAVE BEEN 3.50% AND THE ABOVE NET
INVESTMENT INCOME (LOSS) RATIO WOULD HAVE BEEN (.39)%.
</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 DEAN WITTER
Dr. Manuel H. Johnson PRECIOUS METALS
Paul Kolton AND MINERALS TRUST
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
Diane Lisa Sobin
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
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 prospectus of the Fund.
This report is not authorized for distribution
to prospective investors in the Fund unless
preceded or accompanied by an effective
prospectus.
SEMIANNUAL REPORT
APRIL 30, 1994
