<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST TWO WORLD TRADE CENTER, NEW
YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1995
DEAR SHAREHOLDER:
Gold and the other precious metals have weathered a challenging environment over
the past year. Inflation has been benign, foreign economic growth has slowed and
real interest rates (minus inflation) have remained above average, which reduces
the attractiveness of owning a non-interest-bearing investment such as gold.
During the 12 months ended October 31, 1995, the spot price of gold traded in a
range of $370 to $395 per ounce and closed the period at $383 per ounce. The
fact that gold was unable to breach the $400 per ounce level proved to be a key
psychological barrier, because each time gold neared that spot price, gold
producers "sold forward" their inventories. (Selling forward is a hedging
technique in which producers sell at a set price and deliver at a specified
later date.)
Overall, global demand for gold has been steady, while new mine production has
been declining. In that scenario, demand has been met by gold bullion sales by
international central banks, a process known as disinvestment. Mine production
in South Africa, which supplies approximately 35 percent of the world's gold, is
also declining and is expected to continue to do so through the end of the
century. This implies that either gold prices have to go up or disinvestment
will have to increase to satisfy the growing demand.
FUND PERFORMANCE
For the fiscal year ended October 31, 1995, Dean Witter Precious Metals and
Minerals Trust posted a total return of -12.78 percent, including short- and
long-term capital gains distributions of approximately $0.22 per share. Despite
disappointing overall performance during the fiscal year the Fund outperformed
the average gold-oriented fund, which registered a total return of -13.50
percent as measured by
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1995, CONTINUED
Lipper Analytical Services, Inc. The broader stock market maintained its strong
performance during the fiscal year as evidenced by the Standard & Poor's
Composite Index of 500 stocks (S&P 500), which registered a total return of
26.43 percent.
The accompanying chart compares the performance of a $10,000 investment in the
Fund from inception (August 6, 1990) through the fiscal year ended October 31,
1995, with that of the Lipper Gold-Oriented Funds Index and the S&P 500.
THE PORTFOLIO
[GRAPHIC]
In an environment of stable gold prices
the Fund is
focusing on companies that the
portfolio manager believes to be
low-cost producers with solid balance
sheets and superior management.
Portfolio holdings that satisfy these
criteria include Barrick Gold Corp.,
Placer Dome, Inc., Kinross Gold Corp.
and TVX Gold, Inc., in Canada; Newmont
Mining Corp. in the United States; and
Mount Edon Gold Mines Ltd. in
Australia.
[GRAPHIC]
We shifted 4 percent of the Fund's net
assets into base metals companies
during the fiscal year so that the Fund
can participate in the high profit
potential and strong cash flow that
these companies exhibit. Examples of
base metals holdings include Aluminum
Company of America (ALCOA), Phelps
Dodge and Reynolds Metals, all U.S.
companies.
OUTLOOK
[GRAPHIC]
With the holiday season looming, we
expect gold prices to trend higher as
demand for gold and jewelry picks up.
Keep in mind that increased inflation
is not required to support higher gold
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1995, CONTINUED
prices if demand becomes stronger than the current supply of gold. Given our
outlook for steady and growing demand for gold, coupled with reduced supply, we
believe the Fund is well positioned to benefit from this scenario.
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,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (88.6%)
AUSTRALIA (15.8%)
DIAMOND MINING
358,400 Ashton Mining Ltd.................... $ 449,433
--------------
GOLD
425,000 Delta Gold*.......................... 910,860
37,767 Goldfields Ltd.*..................... 93,284
612,385 Gold Mines of Kalgoorlie Ltd......... 488,683
15,000 Lihir Gold Limited (ADR)*............ 331,875
400,000 Macraes Mining Co. Ltd............... 525,920
249,950 Mount Edon Gold Mines Ltd............ 596,481
190,000 Newcrest Mining Ltd.................. 779,760
175,000 Niugini Mining Ltd................... 363,090
375,000 Normandy Poseidon Ltd................ 441,750
100,000 North Flinders Mines Ltd............. 539,600
300,000 Pasminco Ltd......................... 330,600
360,000 Placer Pacific Ltd................... 681,264
150,000 Plutonic Resources Ltd............... 684,000
200,000 Ross Mining N.L...................... 165,680
140,000 Sons of Gwalia Ltd................... 691,600
109,375 Western Mining Corp. Holdings Ltd.... 699,913
--------------
8,324,360
--------------
TOTAL AUSTRALIA...................... 8,773,793
--------------
CANADA (38.9%)
GOLD
90,000 Agnico-Eagle Mines Ltd............... 990,000
216,750 Barrick Gold Corp.................... 5,012,344
115,000 Cambior, Inc......................... 1,134,590
140,200 Dayton Mining Corp.*................. 490,644
135,000 Echo Bay Mines Ltd................... 1,215,000
60,000 Goldcorp, Inc........................ 513,774
36,600 Golden Knight Resources, Inc......... 183,000
140,000 Hemlo Gold Mines, Inc................ 1,172,752
125,000 Kinross Gold Corp.*.................. 930,750
60,000 Miramar Mining Corp.*................ 307,146
115,000 Pegasus Gold, Inc.................... 1,265,000
140,000 Placer Dome, Inc..................... 3,062,500
200,000 Prime Resources Group, Inc.*......... 1,451,980
135,000 Rayrock Yellowknife Resources,
Inc.*................................ 1,005,210
100,000 Royal Oak Mines, Inc.*............... 364,850
55,000 Teck Corp. (B Shares)................ 1,013,589
220,000 TVX Gold, Inc.*...................... 1,430,000
--------------
TOTAL CANADA......................... 21,543,129
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM (2.0%)
GOLD
65,000 Ashanti Goldfields Ltd............... $ 1,145,625
--------------
UNITED STATES (31.9%)
ALUMINUM
17,000 Aluminum Co. of America.............. 867,000
15,000 Reynolds Metals Co................... 755,625
--------------
1,622,625
--------------
COPPER
10,000 Phelps Dodge Corp.................... 633,750
--------------
GOLD
200,000 Amax Gold, Inc....................... 1,125,000
180,000 Battle Mountain Gold Co. (Class A)... 1,372,500
100,000 Canyon Resources Corp.*.............. 193,750
100,000 Freeport-McMoran Copper & Gold, Inc.
(Class A)............................ 2,287,500
40,000 Golden Star Resources Ltd............ 195,000
75,000 Homestake Mining Co.................. 1,153,125
38,000 Newmont Gold Co...................... 1,368,000
70,000 Newmont Mining Corp.................. 2,642,500
200,000 Santa Fe Pacific Gold Corp........... 1,975,000
--------------
12,312,375
--------------
PLATINUM & PALLADIUM
55,000 Stillwater Mining Co.*............... 914,375
--------------
SILVER
91,040 Coeur D'Alene Mines Corp............. 1,536,300
90,000 Hecla Mining Co.*.................... 663,750
--------------
2,200,050
--------------
TOTAL UNITED STATES.................. 17,683,175
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $52,959,092)........ 49,145,722
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (6.3%)
$ 500 U.S. Treasury Note
7.875% due 01/15/98.................. $ 522,422
1,325 U.S. Treasury Note
7.875% due 11/15/99.................. 1,422,305
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
$ 500 U.S. Treasury Note
8.75% due 08/15/00................... $ 560,156
900 U.S. Treasury Note
7.50% due 05/15/02................... 977,203
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $3,235,808)......... 3,482,086
--------------
SHORT-TERM INVESTMENTS (a) (4.9%)
U.S. GOVERNMENT AGENCIES
2,725 Federal Home Loan Mortgage Corp.
5.65% to 5.82% due 11/01/95 to
11/02/95
(Amortized Cost $2,724,871).......... 2,724,871
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $58,919,771)
(B).......................... 99.8% 55,352,679
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES........ 0.2 95,605
----- -----------
NET ASSETS................... 100.0% $55,448,284
----- -----------
----- -----------
<FN>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Securities 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 $59,387,630; the
aggregate gross unrealized appreciation is $3,020,119 and the aggregate
gross unrealized depreciation is $7,055,070, resulting in net unrealized
depreciation of $4,034,951.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $58,919,771)............................. $55,352,679
Cash........................................................ 46,480
Receivable for:
Investments sold........................................ 296,690
Shares of beneficial interest sold...................... 140,878
Interest................................................ 100,320
Dividends............................................... 46,700
Prepaid expenses and other assets........................... 25,399
-----------
TOTAL ASSETS........................................... 56,009,146
-----------
LIABILITIES:
Payable for:
Investments purchased................................... 348,303
Plan of distribution fee................................ 52,813
Shares of beneficial interest repurchased............... 43,515
Investment management fee............................... 42,250
Accrued expenses and other payables......................... 73,981
-----------
TOTAL LIABILITIES...................................... 560,862
-----------
NET ASSETS:
Paid-in-capital............................................. 58,446,449
Net unrealized depreciation................................. (3,567,018)
Accumulated net investment loss............................. (30,895)
Accumulated undistributed net realized gain................. 599,748
-----------
NET ASSETS............................................. $55,448,284
-----------
-----------
NET ASSET VALUE PER SHARE,
5,676,294 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$9.77
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1995
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $44,966 foreign withholding tax).......... $ 554,607
Interest.................................................... 471,146
-----------
TOTAL INCOME........................................... 1,025,753
-----------
EXPENSES
Plan of distribution fee.................................... 646,161
Investment management fee................................... 516,929
Transfer agent fees and expenses............................ 105,850
Professional fees........................................... 66,179
Shareholder reports and notices............................. 50,614
Custodian fees.............................................. 29,064
Trustees' fees and expenses................................. 21,472
Organizational expenses..................................... 18,336
Registration fees........................................... 17,910
Other....................................................... 4,558
-----------
TOTAL EXPENSES......................................... 1,477,073
-----------
NET INVESTMENT LOSS.................................... (451,320)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. 1,085,755
Foreign exchange transactions........................... (205)
-----------
TOTAL GAIN............................................. 1,085,550
-----------
Net change in unrealized appreciation on:
Investments............................................. (9,565,996)
Translation of other assets and liabilities denominated
in foreign currencies................................. 64
-----------
TOTAL DEPRECIATION..................................... (9,565,932)
-----------
NET LOSS............................................... (8,480,382)
-----------
NET DECREASE................................................ $(8,931,702)
-----------
-----------
</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 YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss......................................... $ (451,320) $ (575,765)
Net realized gain........................................... 1,085,550 1,811,762
Net change in unrealized appreciation....................... (9,565,932) 866,334
---------------- ----------------
NET INCREASE (DECREASE)................................ (8,931,702) 2,102,331
Distributions from net realized gain........................ (1,383,398) (85,434)
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (7,680,413) 26,223,045
---------------- ----------------
TOTAL INCREASE (DECREASE).............................. (17,995,513) 28,239,942
NET ASSETS:
Beginning of period......................................... 73,443,797 45,203,855
---------------- ----------------
END OF PERIOD
(INCLUDING A NET INVESTMENT LOSS OF $30,895 AND $0,
RESPECTIVELY)........................................... $ 55,448,284 $73,443,797
---------------- ----------------
---------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1995
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, American 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 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. Discounts are accreted over
the life of the respective securities. 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 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 OCTOBER 31, 1995, 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 the Fund in the amount of
approximately $120,000 and was reimbursed for the full amount thereof. Such
expenses were fully amortized as of August 5, 1995.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Fund pays 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
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1995, CONTINUED
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 year ended October 31, 1995,
it received approximately $234,000 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 OCTOBER 31, 1995, 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 year ended October 31, 1995 aggregated
$13,945,439 and $22,089,007, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $505,313 and $506,172,
respectively.
For the year ended October 31, 1995, the Fund incurred brokerage commissions of
$22,154 with DWR for portfolio transactions executed on behalf of the Fund. At
October 31, 1995, the Fund's receivable for investments sold included an
unsettled trade with DWR of $77,247.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At October 31, 1995, the Fund had
transfer agent fees and expenses payable of approximately $13,000.
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, 1995 OCTOBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 10,016,172 $ 104,853,425 11,161,794 $129,170,304
Reinvestment of distributions.................................... 130,623 1,296,062 6,713 77,805
----------- -------------- ----------- ------------
10,146,795 106,149,487 11,168,507 129,248,109
Repurchased...................................................... (10,882,589) (113,829,900) (8,942,956) (103,025,064)
----------- -------------- ----------- ------------
Net increase (decrease).......................................... (735,794) $ (7,680,413) 2,225,551 $ 26,223,045
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
As of October 31, 1995, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to a net operating loss. To reflect
reclassifications arising from permanent book/tax differences for the year ended
October 31, 1995, paid-in-capital was charged $378,237, accumulated
undistributed net realized gain was charged $42,188 and accumulated net
investment loss was credited $420,425.
<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
1995 1994 1993 1992 1991 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)....... (0.08) (0.06) (0.04) (0.05) 0.06 0.05
Net realized and unrealized gain
(loss)............................ (1.38) 0.73 2.97 (0.62) 0.03 (1.48)
--------- --------- --------- --------- --------- ---------
Total from investment operations... (1.46) 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..... $ 9.77 $ 11.45 $ 10.80 $ 7.87 $ 8.59 $ 8.57
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... (12.78)% 6.18% 37.23% (7.97)% 1.23% (14.30)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 2.29% 2.28% 2.79% 3.30% 2.18%(4) 1.49%(2)(3)
Net investment income (loss)....... (0.70)% (0.87)% (1.07)% (0.74)% 0.93%(4) 2.99%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $55,448 $73,444 $45,204 $15,135 $11,246 $5,843
Portfolio turnover rate............ 23% 46% 25% 9% 11% -- %(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 (after application of the Fund's expense limitation),
the above annualized expense 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 (after application of the Fund's expense limitation),
the above annualized expense 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
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, 1995, 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 five 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 at October 31, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
DECEMBER 14, 1995
- --------------------------------------------------------------------------------
1995 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended October 31, 1995, the Fund paid to
shareholders $0.21 per share from long-term capital gains.
<PAGE>
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
Konrad Krill
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
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.
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
[Graphic]
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE>
DEAN WITTER PRECIOUS METALS
GROWTH OF $10,000
DATE TOTAL S&P LIPPER IX
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
August 6, 1990 $10,000 $10,000 $10,000
- -------------------------------------------------------------------------------
October 31, 1990 $ 8,570 $ 9,179 $ 8,666
- -------------------------------------------------------------------------------
October 31, 1991 $ 8,675 $12,251 $ 9,061
- -------------------------------------------------------------------------------
October 31, 1992 $ 7,984 $13,469 $ 7,438
- -------------------------------------------------------------------------------
October 31, 1993 $10,956 $15,476 $11,865
- -------------------------------------------------------------------------------
October 31, 1994 $11,634 $16,072 $13,708
- -------------------------------------------------------------------------------
October 31, 1995 $10,050 (3) $20,321 $11,139
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS LIFE OF FUND
----------------------------------------------------------
----------------------------------------------------------
-12.78 (1) 3.44 (1) 0.28 (1)
----------------------------------------------------------
-17.04 (2) 3.08 (2) 0.09 (2)
----------------------------------------------------------
----------------------------------------------------------
----------------------------------------------------------
Fund S&P 500 (4) LIPPER IX (5)
------- ------- -------
----------------------------------------------------------
----------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.
- ----------------------------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%,
5 years - 2%, since inception - 1%). See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value after the deduction of a 1% CDSC, assuming a complete
redemption on October 31, 1995.
(4) The Standard & Poor's 500 Composite Stock Price Index (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. The Index is unmanaged and should not be considered an
investment.
(5) The Lipper Gold-Oriented Funds Index is an equally-weighted performance
index of the largest-qualifying funds (based on net assets) in the Lipper
Gold-Oriented Funds objective. The Index, which is adjusted for capital
gains distributions and income dividends, is unmanaged and should not be
considered an investment. There are currently 10 funds represented in this
Index.
