<PAGE>
Dean Witter Precious Metals and Minerals Trust
Two World Trade Center
New York, New York 10048
Dear Shareholder:
- --------------------------------------------------------------------------------
During the twelve months ended October 31, 1994, the spot price of gold
traded in a range of $362 to $398 per ounce, closing the period at $383.50 per
ounce. During the period, a number of negative factors emerged that
traditionally would have brought the spot price of gold down, but the gold
market has been very resilient. These negative factors included a rise in real
interest rates as evidenced by an increase in the federal-funds rate from 3.00
percent to 4.75 percent, a decline in global jewelry demand of 13.5 percent for
the six months ended June 30, 1994 versus the same six months of last year, and
an increase in mine production of 2.1 percent during the reporting period.
(Following the end of the reporting period, the Federal Reserve Board increased
the federal-funds rate to 5.50 percent).
On the positive side, a strong U.S. economy and the emergence of other
nations from recession indicate that demand for gold should outpace any new
meaningful supply that comes to the market. In addition, there has not been any
evidence of selling of gold by central banks that would change the supply side
of the equation. And, while it is currently not a problem in the U.S., rising
inflation in other parts of the world such as China, India and the former Soviet
Union, have made gold an attractive investment.
For the twelve months ended October
31, 1994, Dean Witter Precious Metals
and Minerals Trust posted a total return
of 6.18 percent (not reflecting a
deduction for the applicable deferred
sales charge). This compares favorably
to the returns for the Standard & Poor's
500 Composite Stock Price Index and the
spot price of gold which returned 3.85
percent and 4.00 percent, respectively.
The accompanying chart illustrates the
growth of a $10,000 investment in the
Fund from inception (August 6, 1990)
versus the performance of a similar
investment in the companies that
comprise the S&P 500.
Portfolio Holdings
The Fund continues to focus on
companies that exhibit production
growth, solid balance sheets, and
superior management. During the period,
the Fund continued to shift a portion of
the assets invested away from companies
that mine for gold in the United States,
where the mining industry is faced with
political, regulatory and environmental
restrictions, toward faster growing gold
mining regions in South America, Ghana,
Asia, and Australia. Examples of
companies in this category are TVX Gold,
Ashanti Goldfields, Zapopan, and Kinross
Gold Corp. Other core hold-
<PAGE>
ings include American Barrick, which finalized its acquisition of LAC minerals
in September, Cambior Inc., Prime Resources, Battle Mountain Gold, Placer
Pacific and Western Mining.
Looking Ahead
Going into 1995, we expect the bullion price to trend higher with increased
volatility. Factors that support rising prices include seasonality as the
physical demand picks up going into the Christmas season and the Chinese New
Year in February, uncertainty in both the currency and financial markets (dollar
weakness), increasing interest in commodity markets, and the fact that central
banks have been absent from selling any meaningful amounts of gold over the past
year. In addition, as the synchronized worldwide recovery strengthens, we see
positive fundamentals supporting bullion prices. We believe that a more
favorable supply/demand balance for gold and other base metals should support
demand and strong prices more than a near-term increase in inflation.
We appreciate your support of Dean Witter Precious Metals and Minerals Trust
and look forward to continuing to serve your investment objective.
Very truly yours,
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (90.0%)
AUSTRALIA (17.1%)
DIAMOND MINING
200,000 Ashton Mining, Ltd....................................................................... $ 446,925
-------------
GOLD
400,000 Delta Gold*.............................................................................. 944,333
500,000 Dome Resources*.......................................................................... 181,888
300,000 Dominion Mining, Ltd..................................................................... 86,861
727,385 Gold Mines of Kalgoorlie, Ltd............................................................ 664,213
475,000 Homestake Gold of Australia, Ltd.*....................................................... 652,384
200,000 M.I.M. Holdings, Ltd..................................................................... 435,046
420,000 Macraes Mining Co., Ltd.................................................................. 763,930
153,750 Mount Edon Gold.......................................................................... 348,139
160,000 Newcrest Mining, Ltd..................................................................... 795,853
213,300 Niugini Mining, Ltd.*.................................................................... 839,276
400,000 Normandy Poseidon, Ltd................................................................... 718,643
108,950 North Flinders Mines, Ltd................................................................ 719,870
470,000 Pancontinental Mining*................................................................... 645,517
325,000 Pasminco, Ltd.*.......................................................................... 545,293
310,000 Placer Pacific, Ltd...................................................................... 934,385
150,000 Plutonic Resources, Ltd.................................................................. 724,954
95,000 Sons of Gwalia, Ltd...................................................................... 794,145
129,375 Western Mining Corp. Holdings, Ltd....................................................... 805,843
300,000 Zapopan NL*.............................................................................. 467,712
-------------
12,068,285
-------------
TOTAL AUSTRALIA.......................................................................... 12,515,210
-------------
CANADA (42.9%)
GOLD
130,000 Agnico Eagle Mines, Ltd.................................................................. 1,641,250
221,750 American Barrick Resources Corp.......................................................... 5,294,281
175,000 Cambior, Inc............................................................................. 2,540,598
110,200 Dayton Mining Corp.*..................................................................... 366,845
130,000 Echo Bay Mines, Ltd...................................................................... 1,592,500
120,000 Glamis Gold, Ltd......................................................................... 1,005,000
55,100 Goldcorp, Inc............................................................................ 336,275
36,600 Golden Knight Resources, Inc............................................................. 237,900
50,000 Golden Star Resources, Inc.*............................................................. 581,250
165,000 Hemlo Gold Mines, Inc.................................................................... 1,739,348
80,000 Horsham Corp............................................................................. 1,240,000
100,000 Kinross Gold Corp.*...................................................................... 564,060
160,450 New Royal Oak Mines, Inc.*............................................................... 652,823
165,000 Pegasus Gold, Inc........................................................................ 2,413,125
165,000 Placer Dome, Inc......................................................................... 3,568,125
240,000 Prime Resources Group, Inc.*............................................................. 1,886,376
150,000 Rayrock Yellowknife Resources, Inc.*..................................................... 1,858,635
120,000 Teck Corp. (B Shares).................................................................... 2,296,944
240,000 TVX Gold, Inc.*.......................................................................... 1,710,000
-------------
TOTAL CANADA............................................................................. 31,525,335
-------------
UNITED KINGDOM (1.4%)
GOLD
50,000 Ashanti Goldfields, Ltd.*................................................................ 1,057,500
-------------
<PAGE>
</TABLE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
UNITED STATES (28.6%)
ALUMINUM
30,000 Alumax, Inc.*............................................................................ $ 892,500
-------------
COPPER
15,000 Phelps Dodge............................................................................. 920,625
-------------
GOLD
180,000 Amax Gold, Inc........................................................................... 1,215,000
160,000 Battle Mountain Gold Co. (Class A)....................................................... 1,780,000
90,000 Canyon Resources Corp.*.................................................................. 185,625
105,000 Freeport-McMoran Copper & Gold (Class A)................................................. 2,388,750
165,000 Homestake Mining Co...................................................................... 3,093,750
38,000 Newmont Gold Co.......................................................................... 1,510,500
73,637 Newmont Mining Corp...................................................................... 3,046,731
150,000 Santa Fe Pacific Gold Corp............................................................... 2,156,250
-------------
15,376,606
-------------
SILVER
110,000 Coeur D'Alene Mines Corp................................................................. 2,048,750
155,000 Hecla Mining Co.*........................................................................ 1,743,750
-------------
3,792,500
-------------
TOTAL UNITED STATES...................................................................... 20,982,231
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST $60,118,305)........................................ 66,080,276
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (4.4%)
$ 1,325 U.S. Treasury Note 7.875% due 11/15/99................................................... 1,346,945
500 U.S. Treasury Note 8.75% due 8/15/00..................................................... 527,735
1,400 U.S. Treasury Note 7.50% due 5/15/02..................................................... 1,386,656
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (IDENTIFIED COST $3,224,402)........................... 3,261,336
-------------
SHORT-TERM INVESTMENTS (A) (8.2%)
COMMERCIAL PAPER (2.1%)
AUTOMOTIVE FINANCE
1,500 Ford Motor Credit Co. 4.72% due 11/2/94 (Amortized Cost $1,499,803)...................... 1,499,803
-------------
U.S. GOVERNMENT AGENCIES (6.1%)
2,000 Federal National Mortgage Association 4.65% due 11/1/94.................................. 2,000,000
2,500 Federal National Mortgage Association 4.68% due 11/7/94.................................. 2,498,050
-------------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $4,498,050)............................... 4,498,050
-------------
TOTAL SHORT-TERM INVESTMENTS (AMORTIZED COST $5,997,853)................................. 5,997,853
------------
TOTAL INVESTMENTS (IDENTIFIED COST $69,340,560) (B)............................... 102.6 % 75,339,465
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.................................... (2.6) (1,895,668)
--------- ------------
NET ASSETS........................................................................ 100.0 % $ 73,443,797
--------- ------------
--------- ------------
<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
$69,678,741; THE AGGREGATE GROSS UNREALIZED APPRECIATION IS $7,523,277 AND
THE AGGREGATE GROSS UNREALIZED DEPRECIATION IS $1,862,553, RESULTING IN
NET UNREALIZED APPRECIATION OF $5,660,724.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $69,340,560) (Note 1)... $ 75,339,465
Cash....................................... 94,310
Receivable for:
Investments sold......................... 305,965
Shares of beneficial interest sold....... 193,336
Interest................................. 105,981
Dividends................................ 34,034
Deferred organizational expenses (Note
1)....................................... 18,336
Prepaid expenses........................... 13,901
------------
TOTAL ASSETS....................... 76,105,328
------------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased............................ 1,257,627
Investments purchased (Note 4)........... 1,205,440
Plan of distribution fee (Note 3)........ 66,309
Investment management fee (Note 2)....... 53,048
Accrued expenses (Note 4).................. 79,107
------------
TOTAL LIABILITIES.................. 2,661,531
------------
NET ASSETS:
Paid-in-capital............................ 66,505,099
Net unrealized appreciation................ 5,998,914
Accumulated undistributed net realized
gain..................................... 939,784
------------
NET ASSETS......................... $ 73,443,797
------------
------------
NET ASSET VALUE PER SHARE, 6,412,088 shares
outstanding (unlimited shares authorized
of $.01 par value).......................
$11.45
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1994
<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Dividends (net of $40,178 foreign
withholding tax)...................... $ 519,926
Interest................................ 416,893
-----------
TOTAL INCOME........................ 936,819
-----------
EXPENSES
Plan of distribution fee (Note 3)....... 662,571
Investment management fee (Note 2)...... 530,057
Transfer agent fees and expenses (Note
4).................................... 99,754
Registration fees....................... 50,132
Professional fees....................... 45,563
Shareholder reports and notices......... 41,360
Custodian fees.......................... 40,660
Organizational expenses (Note 1)........ 23,988
Trustees' fees and expenses (Note 4).... 15,320
Other................................... 3,179
-----------
TOTAL EXPENSES...................... 1,512,584
-----------
NET INVESTMENT LOSS............... (575,765)
-----------
NET REALIZED AND UNREALIZED GAIN (Note 1):
Net realized gain on:
Investments........................... 1,809,457
Foreign exchange transactions......... 2,305
-----------
1,811,762
-----------
Net change in unrealized appreciation
on:
Investments........................... 866,593
Translation of other assets and
liabilities denominated in foreign
currencies.......................... (259)
-----------
866,334
-----------
NET GAIN............................ 2,678,096
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $ 2,102,331
-----------
-----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31,1994 OCTOBER 31, 1993
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss................................................... $ (575,765) $ (284,076)
Net realized gain..................................................... 1,811,762 68,442
Net change in unrealized appreciation................................. 866,334 6,947,645
------------------ ------------------
Net increase in net assets resulting from operations................ 2,102,331 6,732,011
Distributions to shareholders from net realized gain.................... (85,434) --
Net increase from transactions in shares of beneficial interest (Note
5)..................................................................... 26,223,045 23,336,779
------------------ ------------------
Total increase...................................................... 28,239,942 30,068,790
NET ASSETS:
Beginning of period..................................................... 45,203,855 15,135,065
------------------ ------------------
END OF PERIOD (including undistributed net investment income of $0 and
$67, respectively)..................................................... $ 73,443,797 $ 45,203,855
------------------ ------------------
------------------ ------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. The Fund was organized as a Massachusetts business trust on December
28, 1989 and commenced operations on August 6, 1990.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) An equity security listed or traded on
the New York or American 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 available bid price prior to
the time of valuation; (3) when market quotations are not readily available,
portfolio securities are valued at their fair value as determined in good
faith under procedures established by and under the general supervision of
the Trustees (valuation of debt securities for which market quotations are
not readily available may be based upon current market prices of securities
which are comparable in coupon, rating and maturity or an appropriate matrix
utilizing similar factors); and (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 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 and includes amortization of certain
short-term investments.
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
are translated at the exchange rates prevailing at the end of the period;
and (2) purchases, sales, income and expenses are translated at the exchange
rate 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 foreign exchange
gains/losses included in realized and unrealized gain/loss 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. 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.
E. 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
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
Notes to Financial Statements (CONTINUED)
- --------------------------------------------------------------------------------
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 that 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.
F. ORGANIZATIONAL EXPENSES -- Dean Witter InterCapital Inc. (the
"Investment Manager") paid the organizational expenses of the Fund in the
amount of approximately $120,000 which have been fully reimbursed by the
Fund. Such expenses have been deferred and are being amortized by the Fund
on 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 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, 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 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 has 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 an annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
Fund's inception (not including reinvestment of dividend or capital gain
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 provided 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
the Investment Manager and Distributor, and other employees or selected dealers
who engage in or support distribution of the Fund's shares or who service
shareholder accounts, including overhead and telephone expenses, printing and
distribution of prospectuses and reports used in connection with the offering of
the Fund's shares to other than current shareholders and preparation, printing
and distribution of sales literature and advertising materials. In addition, the
Distributor may be compensated under the
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
Notes to Financial Statements (CONTINUED)
- --------------------------------------------------------------------------------
Plan for its opportunity costs in advancing such amounts, which compensation
would be in the form of a carrying charge on any unreimbursed expenses incurred
by the Distributor.
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 year ended October 31,
1994, it received approximately $203,000 in contingent deferred sales charges
from certain 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 proceeds from sales of portfolio securities, excluding short-term
investments, for the year ended October 31, 1994 aggregated $50,724,224 and
$28,330,946, respectively, including purchases and sales of U.S. Government
obligations of $4,906,766 and $3,395,562, respectively.
For the year ended October 31, 1994, the Fund incurred brokerage commissions
of $15,880 with Dean Witter Reynolds Inc. for portfolio transactions executed on
behalf of the Fund. At October 31, 1994, the Fund's payable for investments
purchased included unsettled trades with Dean Witter Reynolds Inc. of $606,000.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At October 31, 1994, the Fund had
transfer agent fees and expenses payable of approximately $12,500.
5. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 1994 OCTOBER 31, 1993
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------------- ---------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold......................................... 11,161,794 $ 129,170,304 7,460,741 $ 73,891,501
Reinvestment of distributions................ 6,713 77,805 -- --
------------- ---------------- ------------ ---------------
11,168,507 129,248,109 7,460,741 73,891,501
Repurchased.................................. (8,942,956) (103,025,064) (5,197,418) (50,554,722)
------------- ---------------- ------------ ---------------
Net increase................................. 2,225,551 $ 26,223,045 2,263,323 $ 23,336,779
------------- ---------------- ------------ ---------------
------------- ---------------- ------------ ---------------
</TABLE>
6. FEDERAL INCOME TAX STATUS -- As of October 31, 1994, the Fund had temporary
book/tax differences attributable to capital loss deferrals on wash sales and
permanent book/tax differences primarily attributable to net operating losses.
To reflect cumulative reclassifications arising from permanent book/tax
differences as of October 31, 1993, accumulated undistributed net realized gain
was charged $105,298, paid-in-capital was charged $274,653 and accumulated net
investment loss was credited $379,951. To reflect reclassifications arising from
permanent book/tax differences for the year ended October 31, 1994, accumulated
undistributed net realized gain was charged and accumulated net investment loss
was credited $575,698.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE
PERIOD
AUGUST 6,
1990*
FOR THE YEAR ENDED OCTOBER 31, THROUGH
----------------------------------------- OCTOBER 31,
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 income
(loss)................... (0.06) (0.04) (0.05) 0.06 0.05
Net realized and
unrealized gain (loss)... 0.73 2.97 (0.62) 0.03 (1.48)
-------- -------- -------- -------- ------------
Total from investment
operations............... 0.67 2.93 (0.67) 0.09 (1.43)
-------- -------- -------- -------- ------------
Less dividends and
distributions from:
Net investment income... -- -- (0.04) (0.07) --
Capital gains........... (0.02) -- (0.01) -- --
-------- -------- -------- -------- ------------
Total dividends and
distributions............ (0.02) -- (0.05) (0.07) --
-------- -------- -------- -------- ------------
Net asset value, end of
period................... $11.45 $10.80 $ 7.87 $ 8.59 $ 8.57
-------- -------- -------- -------- ------------
-------- -------- -------- -------- ------------
Total Investment
Return+.................. 6.18% 37.23% (7.97)% 1.23% (14.30)%(1)
Ratios/Supplemental Data:
Net assets, end of period
(in thousands)........... $ 73,444 $ 45,204 $ 15,135 $ 11,246 $5,843
Ratios to average net
assets:
Expenses................ 2.28% 2.79% 3.30% 2.18%(4) 1.49%(2)(3)
Net investment income
(loss)................. (0.87)% (1.07)% (0.74)% 0.93%(4) 2.99%(2)(3)
Portfolio turnover rate... 46% 25% 9% 11% 0%(1)
<FN>
- --------------
* DATE OF COMMENCEMENT OF OPERATIONS.
+ 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 LOSS RATIO WOULD HAVE BEEN .39%.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
Dean Witter Precious Metals and Minerals Trust
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter Precious Metals and Minerals
Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Precious Metals and
Minerals Trust (the "Fund") at October 31, 1994, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the four years
in the period then ended and for the period August 6, 1990 (commencement of
operations) through October 31, 1990, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at October 31, 1994 by correspondence with the
custodian, registrar and brokers, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
December 12, 1994
1994 FEDERAL INCOME TAX NOTICE (UNAUDITED)
During the year ended October 31, 1994, the Fund paid to shareholders $.017695
per share from long-term capital gains.
<PAGE>
[BLACK BLOCK]
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn PRECIOUS METALS
John R. Haire AND MINERALS TRUST
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Diane Lisa Sobin
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT [PICTURE]
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
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.
ANNUAL REPORT
OCTOBER 31, 1994
<PAGE>
DEAN WITTER PRECIOUS METALS
GROWTH OF $10,000
($ IN THOUSANDS)
<TABLE>
<CAPTION>
DATE TOTAL S&P
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
August 6, 1990 $10,000 $10,000
- --------------------------------------------------------------------------------
October 31, 1990 $ 8,570 $ 9,179
- --------------------------------------------------------------------------------
October 31, 1991 $ 8,675 $12,251
- --------------------------------------------------------------------------------
October 31, 1992 $ 7,984 $13,469
- --------------------------------------------------------------------------------
October 31, 1993 $10,956 $15,476
- --------------------------------------------------------------------------------
October 31, 1994 $11,434 (3) $16,072
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
----------------------------
----------------------------
<S> <C>
6.18 (1) 3.64 (1)
----------------------------
1.18 (2) 3.21 (2)
----------------------------
----------------------------
----------------------------
----------------------------
____ Fund ____ S&P 500 (4)
----------------------------
----------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
<FN>
________________________________________
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes the deduction of the maximum applicable contingent
deferred sales charge (CDSC) (1 year-5%, since inception - 2%). See the
Fund's current prospectus for complete details on fees and sales charges.
(3) Closing value after the deduction of a 2% CDSC, assuming a complete
redemption on October 31, 1994.
(4) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index does
not include any expenses, fees or charges.
</TABLE>
