<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST TWO WORLD TRADE CENTER, NEW
YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
According to the World Gold Council, demand for gold was light for much of 1994
and into the early part of 1995, when the market picked up significantly. Over
the six months ended April 30, 1995, the spot price of gold traded in a range of
$370 to $395 per ounce, closing the period at $387 per ounce. Gold's reaction,
or rather nonreaction, to ongoing global financial crises (significant U.S.
dollar weakness, the Barings collapse, the problems in Mexico) has been of
concern and can be explained by two points. First, real short-term U.S. interest
rates (minus inflation) are still historically high, which has been a drag on
gold prices. Also, as a hedge against a perceived drop in gold prices, gold
mining companies began selling "forward" when the spot price reached $395 per
ounce (forward selling simply means that sales of gold were initiated at a
particular spot price, with actual delivery at a later specified date).
Historically, this practice tends to drive down the price of gold. Despite these
factors, we are encouraged that gold's spot-price range has not collapsed. We
attribute this to improving global demand for gold, particularly from the Asian
countries.
PERFORMANCE
Against a backdrop of light demand, Dean Witter Precious Metals and Minerals
Trust produced a total return of -4.85 percent for the six-month period between
October 31, 1994 and April 30, 1995. This return includes short- and long-term
capital gains distributions totaling approximately $0.22 per share, which were
paid on December 30, 1994 to shareholders of record on December 22, 1994.
Despite disappointing overall results during the period under review, the Fund
ranked in the top third (#13 out of 38) among all gold-oriented funds as
measured by Lipper Analytical Services, Inc.
THE PORTFOLIO
The Fund continues to focus on companies that exhibit production growth,
exploration potential, good balance sheets and strong managements. With the
current bent in Congress toward tax reduction, the
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
LETTER TO THE SHAREHOLDERS, CONTINUED
Clinton administration's 1993 proposed 8.5 percent mining royalty tax may be
targeted for a cut. For that reason, assets committed to U.S.-based mining
companies increased slightly during the period under review. Stillwater Mining,
a U.S.-based company that mines for platinum and palladium in the United States
is a new addition to the portfolio. Since most of the world's platinum and
palladium comes from South Africa, we believe Stillwater presents a unique
opportunity. Positions eliminated during the period include Dominion Mining and
MIM Holdings, which were sold after failing to fulfill analysts expectations for
gold production and output, and Horesham Corp. and Phelps Dodge, which in our
opinion had become overvalued. Core portfolio holdings with good growth
potential include Barrick Gold Corp. (formerly American Barrick), Placer Dome,
TVX Gold, Kinross Gold, Newmont Mining, Coeur D'Alene Mines and Sons of Gwalia.
OUTLOOK
We expect gold's spot price to trend higher over the next several years, albeit
with increased volatility. The main factor supporting this belief is growing
worldwide demand (especially from China, India and other Asian markets).
Estimated new production of gold from around the world is not expected to
fulfill this growing demand. The wildcard is the potential sale of above-ground
gold supply held by central banks, speculators and other institutions, a
practice referred to as "disinvestment." Indications are that over the past two
to three years, central bank sales of gold bullion have slowed to a level that
the gold market can absorb. A flattening of central bank gold sales would
benefit the gold market since worldwide demand is growing. In addition to the
favorable supply/demand imbalance, the weak U.S. dollar and lower German and
Japanese interest rates could provide added support for gold 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,
[SIG]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (89.7%)
AUSTRALIA (15.3%)
DIAMOND MINING
308,400 Ashton Mining Ltd.................... $ 538,466
--------------
GOLD
425,000 Delta Gold........................... 868,817
500,000 Dome Resources Ltd................... 80,025
662,385 Gold Mines of Kalgoorlie Ltd......... 578,262
425,000 Homestake Gold Australia Ltd......... 494,700
450,000 Macraes Mining Co. Ltd............... 517,253
234,950 Mount Edon Gold Mines Ltd............ 512,778
190,000 Newcrest Mining Ltd.................. 812,763
210,000 Niugini Mining Ltd................... 664,571
450,000 Normandy Poseidon Ltd................ 556,538
100,000 North Flinders Mines Ltd............. 602,370
125,000 Pancontinental Mining Ltd............ 167,325
420,000 Pasminco, Ltd........................ 452,214
340,000 Placer Pacific Ltd................... 845,937
130,000 Plutonic Resources Ltd............... 599,606
150,000 Sons of Gwalia Ltd................... 660,206
119,375 Western Mining Corp. Holdings Ltd.... 675,657
393,100 Zapopan N.L.......................... 551,942
--------------
9,640,964
--------------
TOTAL AUSTRALIA...................... 10,179,430
--------------
CANADA (40.5%)
GOLD
110,000 Agnico-Eagle Mines Ltd............... 1,265,000
221,750 Barrick Gold Corp.................... 5,349,719
170,000 Cambior, Inc......................... 1,941,774
170,200 Dayton Mining Corp................... 526,786
110,000 Echo Bay Mines Ltd................... 1,045,000
100,000 Glamis Gold Ltd...................... 850,000
50,000 Goldcorp, Inc........................ 548,080
36,600 Golden Knight Resources, Inc......... 237,900
160,000 Hemlo Gold Mines, Inc................ 1,798,080
135,000 Kinross Gold Corp.................... 820,733
165,000 Pegasus Gold, Inc.................... 2,000,625
150,000 Placer Dome, Inc..................... 3,562,500
230,000 Prime Resources Group, Inc........... 1,588,978
150,000 Rayrock Yellowknife Resources,
Inc.................................. 1,588,980
130,450 Royal Oak Mines, Inc.*............... 437,386
90,000 Teck Corp. (B Shares)................ 1,575,162
240,000 TVX Gold, Inc........................ 1,740,000
--------------
TOTAL CANADA......................... 26,876,703
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM (2.6%)
GOLD
70,000 Ashanti Goldfields Ltd............... $ 1,750,000
--------------
UNITED STATES (31.3%)
ALUMINUM
50,000 Alumax Inc.*......................... 1,412,500
--------------
GOLD
200,000 Amax Gold, Inc....................... 1,125,000
150,000 Battle Mountain Gold Co. (Class A)... 1,650,000
100,000 Canyon Resources Corp................ 200,000
100,000 Freeport-McMoran Copper & Gold, Inc.
(Class A)............................ 2,087,500
40,000 Golden Star Resources Ltd............ 315,000
100,000 Homestake Mining Co.................. 1,687,500
38,000 Newmont Gold Co...................... 1,548,500
71,000 Newmont Mining Corp.................. 2,973,125
200,000 Santa Fe Pacific Gold Corp........... 2,525,000
--------------
14,111,625
--------------
METALS & MINING
55,000 Stillwater Mining Co................. 1,045,000
--------------
SILVER
115,000 Coeur D'Alene Mines Corp............. 2,271,250
180,000 Hecla Mining Co...................... 1,912,500
--------------
4,183,750
--------------
TOTAL UNITED STATES.................. 20,752,875
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $58,694,349)........ 59,559,008
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (5.1%)
$ 500 U.S. Treasury Note 7.875% due
01/15/98............................. 514,218
1,325 U.S. Treasury Note 7.875% due
11/15/99............................. 1,376,344
500 U.S. Treasury Note 8.75% due
08/15/00............................. 540,390
900 U.S. Treasury Note 7.50% due
05/15/02............................. 926,718
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $3,235,808)......... 3,357,670
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (5.8%)
U.S. GOVERNMENT AGENCIES (a) (5.5%)
$ 2,150 Federal Home Loan Mortgage Corp.
5.85% due 05/01/95................... $ 2,150,000
1,500 Federal Home Loan Banks 5.88% due
05/03/95............................. 1,499,510
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(IDENTIFIED COST $3,649,510)......... 3,649,510
--------------
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.3%)
$ 203 The Bank of New York 6.0625% due
05/01/95 (dated 04/28/95; proceeds
$203,463, collaterized by $206,590
U.S. Treasury Note 7.50% due 02/29/96
valued at $210,905) (Identified Cost
$203,360)............................ $ 203,360
--------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $3,852,870)......... 3,852,870
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $65,783,027)
(B).......................... 100.6 66,769,548
LIABILITIES IN EXCESS OF
OTHER ASSETS................. (0.6) (411,917)
----- -----------
NET ASSETS................... 100.0% $66,357,631
----- -----------
----- -----------
<FN>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
(a) U.S. Government agencies were purchased on a discount basis. The interest
rates shown have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $66,121,208; the
aggregate gross unrealized appreciation is $5,401,587 and the aggregate
gross unrealized depreciation is $4,753,247, resulting in net unrealized
appreciation of $648,340.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $65,783,027)............................. $66,769,548
Receivable for:
Shares of beneficial interest sold...................... 288,213
Interest................................................ 99,973
Dividends............................................... 34,755
Investments sold........................................ 14,935
Deferred organizational expenses............................ 6,441
Prepaid expenses............................................ 13,276
-----------
TOTAL ASSETS........................................... 67,227,141
-----------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased............... 541,703
Investments purchased................................... 175,425
Plan of distribution fee................................ 55,545
Investment management fee............................... 44,436
Accrued expenses............................................ 52,401
-----------
TOTAL LIABILITIES...................................... 869,510
-----------
NET ASSETS:
Paid-in-capital............................................. 64,898,033
Net unrealized appreciation................................. 986,509
Accumulated net investment loss............................. (189,803)
Accumulated undistributed net realized gain................. 662,892
-----------
NET ASSETS............................................. $66,357,631
-----------
-----------
NET ASSET VALUE PER SHARE,
6,228,391 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$10.65
-----------
-----------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $22,721 foreign withholding tax).......... $ 281,853
Interest.................................................... 240,600
-----------
TOTAL INCOME........................................... 522,453
-----------
EXPENSES
Plan of distribution fee.................................... 317,034
Investment management fee................................... 253,627
Transfer agent fees and expenses............................ 52,490
Professional fees........................................... 23,891
Shareholder reports and notices............................. 21,307
Organizational expenses..................................... 11,895
Trustees' fees and expenses................................. 10,661
Custodian fees.............................................. 9,286
Registration fees........................................... 7,823
Other....................................................... 4,242
-----------
TOTAL EXPENSES......................................... 712,256
-----------
NET INVESTMENT LOSS.................................... (189,803)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investments............................................. 1,089,957
Foreign exchange transactions........................... 187
-----------
TOTAL GAIN............................................. 1,090,144
-----------
Net change in unrealized appreciation on:
Investments............................................. (5,012,384)
Net translation of other assets and liabilities
denominated in foreign currencies..................... (21)
-----------
TOTAL DEPRECIATION..................................... (5,012,405)
-----------
NET LOSS............................................... (3,922,261)
-----------
NET DECREASE................................................ $(4,112,064)
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 1995 ENDED
(UNAUDITED) OCTOBER 31, 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss......................................... $ (189,803) $ (575,765)
Net realized gain........................................... 1,090,144 1,811,762
Net change in unrealized appreciation....................... (5,012,405) 866,334
------------------ ----------------
NET INCREASE (DECREASE)................................ (4,112,064) 2,102,331
Distributions to shareholders from net realized gain........ (1,367,036) (85,434)
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (1,607,066) 26,223,045
------------------ ----------------
TOTAL INCREASE (DECREASE).............................. (7,086,166) 28,239,942
NET ASSETS:
Beginning of period......................................... 73,443,797 45,203,855
------------------ ----------------
END OF PERIOD
(INCLUDING ACCUMULATED NET INVESTMENT LOSS OF $189,803
AND $-0-, RESPECTIVELY)................................. $66,357,631 $73,443,797
------------------ ----------------
------------------ ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (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. 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 by 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 the amortization of certain short-term securities.
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 rates
prevailing on the respective dates of such transactions. The resultant exchange
gains and losses are included in the
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
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 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 approximately $120,000 which have
been reimbursed by the Fund for the full amount thereof. 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
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
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. ("DWR"), 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 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 six months ended April 30,
1995, it received approximately $130,000 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.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 1995 aggregated
$7,575,723 and $10,078,230, respectively, including purchases and sales of U.S.
Government obligations of $505,313 and $516,635, respectively.
For the six months ended April 30, 1995, the Fund incurred brokerage commissions
of $10,632 with DWR for portfolio transactions executed on behalf of the Fund.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $11,900.
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, 1995 OCTOBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 5,642,817 $ 57,517,153 11,161,794 $129,170,304
Reinvestment of distributions.................................... 129,264 1,281,007 6,713 77,805
----------- -------------- ----------- ------------
5,772,081 58,798,160 11,168,507 129,248,109
Repurchased...................................................... (5,955,778) (60,405,226) (8,942,956) (103,025,064)
----------- -------------- ----------- ------------
Net increase (decrease).......................................... (183,697) $ (1,607,066) 2,225,551 $ 26,223,045
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
At October 31, 1994, the Fund had temporary book/tax differences attributable to
capital loss deferrals on wash sales and permanent book/tax difference primarily
attributable to net operating losses.
<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 SIX
MONTHS ENDED FOR THE YEAR ENDED FOR THE PERIOD
APRIL 30, OCTOBER 31 AUGUST 6, 1990*
1995 ---------------------------------------------------- THROUGH
(UNAUDITED) 1994 1993 1992 1991 OCTOBER 31, 1990
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period............... $ 11.45 $ 10.80 $ 7.87 $ 8.59 $ 8.57 $10.00
------ ---------- ---------- ----------- ------ ------
Net investment income (loss)....... (0.03) (0.06) (0.04) (0.05) 0.06 0.05
Net realized and unrealized gain
(loss)............................ (0.55) 0.73 2.97 (0.62) 0.03 (1.48)
------ ---------- ---------- ----------- ------ ------
Total from investment operations... (0.58) 0.67 2.93 (0.67) 0.09 (1.43)
------ ---------- ---------- ----------- ------ ------
Less dividends and distributions
from:
Net investment income........... -- -- -- (0.04) (0.07) --
Net realized gain............... (0.22) (0.02) -- (0.01) -- --
------ ---------- ---------- ----------- ------ ------
Total dividends and
distributions..................... (0.22) (0.02) -- (0.05) (0.07) --
------ ---------- ---------- ----------- ------ ------
Net asset value, end of period..... $ 10.65 $ 11.45 $ 10.80 $ 7.87 $ 8.59 $ 8.57
------ ---------- ---------- ----------- ------ ------
------ ---------- ---------- ----------- ------ ------
TOTAL INVESTMENT RETURN+........... (4.85)%(1) 6.18% 37.23% (7.97)% 1.23% (14.30)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 2.27%(2) 2.28% 2.79% 3.30% 2.18%(4) 1.49%(2)(3)
Net investment income (loss)....... (0.61)%(2) (0.87)% (1.07)% (0.74)% 0.93%(4) 2.99%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $66,358 $73,444 $45,204 $15,135 $11,246 $5,843
Portfolio turnover rate............ 12%(1) 46% 25% 9% 11% 0%(1)
<FN>
- ---------------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge.
(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 expenses and net investment income
ratios would have been 3.50% and 0.98%, respectively.
(4) If the Fund had borne all expenses that were assumed or waived by the
Investment Manager, the above annualized expenses and net investment income
ratios would have been 3.50% and 0.39%, respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
- ---------------------------------------
DEAN WITTER
PRECIOUS METALS
AND MINERALS TRUST
[PHOTO]
SEMIANNUAL REPORT
APRIL 30, 1995
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
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
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
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.
M<PAGE>
DEAN WITTER
PRECIOUS METALS
AND MINERALS
TRUST
June 19, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Dean Witter Precious Metals and Minerals Trust
File No. 811-5988
Gentlemen:
Pursuant to Rule 30b2-1 under the Investment Company Act of 1940, we are
electronically transmitting via Edgar a copy of the Semi-Annual Report for the
above referenced Fund containing the unaudited financial statements for the
period ending April 30, 1995.
Very truly yours,
Sheldon Curtis
Vice President
and General Counsel
