<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST TWO WORLD TRADE CENTER, NEW
YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS APRIL 30, 1996
DEAR SHAREHOLDER:
Worldwide demand for gold rose an estimated nine percent in 1995. According to
the annual Gold Fields Mineral Service Report, this strength appears to be
continuing in 1996, although with some price sensitivity. It is also estimated
that the gap between supply and demand for this year is approximately 1,300
metric tons, the largest supply/ demand imbalance ever. In the first quarter
gold broke through the key psychological price level of $400 per ounce, trading
as high as $414.17 per ounce, before ending April at $391.90 per ounce.
With mine production steadily falling for two years in a row, the market has had
to rely on above-ground stocks of gold bullion to maintain supply and demand
balance. Central bank gold sales have been the primary supplier of bullion but,
as the price of gold has risen over the past three years, banks have cut back
their sales. Whether or not central banks will continue to hold their gold
reserves is one of the key uncertainties currently facing the gold market.
In another important fundamental development, over the last six months gold
producers collectively have cut back on the amount of hedging that they
typically do as a part of their normal business. This sent a bullish message to
the gold market, indicating that gold producers wanted to hold more of their
gold rather than selling it into the future.
FUND PERFORMANCE
For the six-month period ended April 30, 1996, Dean Witter Precious Metals and
Minerals Trust posted a total return of 31.24 percent, including a long-term
capital gains distribution of $0.19 per share payable on December 29, 1995 to
shareholders of record as of December 21, 1995. Over the same period, the
Standard & Poor's 500 Composite Stock Price Index registered a total return of
13.76 percent, while the Lipper Gold Fund Index produced a total return of 34.11
percent.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
LETTER TO THE SHAREHOLDERS APRIL 30, 1996, CONTINUED
THE PORTFOLIO
The common stock shares of North American and Australian gold producers held in
the Fund's portfolio performed well over the past six months, especially versus
the spot price of gold. Gold stocks were strong primarily because of a number of
important new discoveries and also because of the growth of new, emerging
producers who brought new mines into production. The Fund added some of these
smaller producers to its portfolio, including Bre-X Minerals Ltd., Triton Mining
Corp., Greenstone Resources Ltd. and Eldorado Corporation Ltd. Other key core
holdings included Barrick Gold Corp., Newmont Mining Corp., Firstmiss Gold Inc.
and Hemlo Gold Mines, Inc., which agreed to merge with Battle Mountain Gold (the
Fund held both stocks).
GOING FORWARD
We expect gold prices to trend higher, accompanied by increased volatility, as
demand continues to grow. The primary uses of gold are jewelry, electronics and
coins. A significant component of the demand for gold is also attributable to
bar hoarding, a practice by which large amounts of gold are purchased, mainly by
central banks, with the expectations that the price will rise. The Far and
Middle East--including China, India and other emerging countries--remains the
key to the market. South African mine supply (nearly 30 percent of the total
market) continues to decline and is expected to remain in this pattern for the
next several years.
Given the fundamental supply/demand imbalance for precious metals, we believe
the Fund is well-positioned to benefit over the long term. The portfolio
continues to focus on gold stocks with growth potential. These companies
generally have the management experience as well as the geological and financial
resources to continue building and growing well into the future.
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 APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS AND RIGHTS (88.1%)
AUSTRALIA (14.2%)
GOLD MINING
300,000 Delta Gold*......................... $ 750,798
462,385 Gold Mines of Kalgoorlie Ltd........ 538,567
400,000 Golden Shamrock Mines Ltd.*......... 387,836
100,000 Herald Resources Ltd................ 114,902
60,000 Highlands Gold Ltd. (Rights)*....... 4,722
15,000 Lihir Gold Ltd. (ADR)*.............. 483,750
300,000 M.I.M. Holdings Ltd................. 443,868
275,000 Macraes Mining Co. Ltd.............. 647,111
330,949 Mount Edon Gold Mines Ltd........... 651,142
200,000 Newcrest Mining Ltd................. 964,862
80,000 North Flinders Mines Ltd............ 499,273
450,000 Pasminco Ltd........................ 658,719
300,000 Placer Pacific Ltd.................. 578,445
150,000 Plutonic Resources Ltd.............. 914,887
300,000 Ross Mining N.L..................... 389,565
125,000 Sons of Gwalia Ltd.................. 890,294
420,000 St. Barbara Mines Ltd............... 277,654
100,375 Western Mining Corp. Holdings
Ltd................................. 733,075
--------------
TOTAL AUSTRALIA..................... 9,929,470
--------------
CANADA (40.0%)
GOLD MINING
75,000 Agnico-Eagle Mines Ltd.............. 1,368,750
170,000 Barrick Gold Corp................... 5,206,250
4,000 Bre-X Minerals Ltd.*................ 587,631
125,000 Cambior, Inc........................ 1,753,713
145,200 Dayton Mining Corp.*................ 1,002,562
115,000 Echo Bay Mines Ltd.................. 1,509,375
50,000 Eldorado Corporation Ltd.*.......... 299,324
45,000 Goldcorp, Inc....................... 875,934
46,600 Golden Knight Resources, Inc.*...... 267,950
60,000 Greenstone Resources Ltd.*.......... 570,736
100,000 Hemlo Gold Mines, Inc............... 1,296,460
140,000 Kinross Gold Corp.*................. 1,213,452
75,000 Miramar Mining Corp.*............... 460,005
130,000 Pegasus Gold, Inc.*................. 1,852,500
125,000 Placer Dome, Inc.................... 3,468,750
170,000 Prime Resources Group, Inc.*........ 1,610,835
110,000 Rayrock Yellowknife Resources,
Inc.*............................... 767,591
90,000 Royal Oak Mines, Inc.*.............. 373,509
55,000 Teck Corp. (B Shares)............... 1,177,649
100,000 Triton Mining Corp.*................ 624,357
180,000 TVX Gold, Inc.*..................... 1,417,500
--------------
27,704,833
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
METALS & MINING
40,000 Aur Resources, Inc.*................ $ 333,480
--------------
TOTAL CANADA........................ 28,038,313
--------------
UNITED KINGDOM (3.2%)
GOLD MINING
70,000 Ashanti Goldfields Ltd.............. 1,548,750
--------------
METALS & MINING
10,500 RTZ Corp. PLC (ADR)................. 673,312
--------------
TOTAL UNITED KINGDOM................ 2,222,062
--------------
UNITED STATES (30.7%)
GOLD MINING
125,000 Amax Gold, Inc.*.................... 828,125
200,000 Battle Mountain Gold Co. (Class
A).................................. 1,775,000
80,000 Canyon Resources Corp.*............. 290,000
55,000 Firstmiss Gold Inc.*................ 1,691,250
75,000 Freeport-McMoran Copper & Gold, Inc.
(Class A)........................... 2,371,875
40,000 Golden Star Resources Ltd........... 590,000
75,000 Homestake Mining Co................. 1,509,375
34,000 Newmont Gold Co..................... 1,972,000
55,000 Newmont Mining Corp................. 3,183,125
150,000 Santa Fe Pacific Gold Corp.......... 2,231,250
--------------
16,442,000
--------------
METALS - MISCELLANEOUS
20,000 Engelhard Corp...................... 502,500
--------------
PLATINUM & PALLADIUM
60,000 Stillwater Mining Co.*.............. 1,410,000
--------------
SILVER MINING
80,000 Coeur D'Alene Mines Corp............ 1,590,000
25,000 Coeur D'Alene Mines Corp. (Conv.
Pref.).............................. 521,875
140,000 Hecla Mining Co.*................... 1,085,000
--------------
3,196,875
--------------
TOTAL UNITED STATES................. 21,551,375
--------------
TOTAL COMMON AND PREFERRED STOCKS
AND RIGHTS
(IDENTIFIED COST $50,944,102)....... 61,741,220
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (4.0%)
$ 825 U.S. Treasury Note
7.875% due 11/15/99................. $ 854,905
500 U.S. Treasury Note
8.75% due 08/15/00.................. 543,672
900 U.S. Treasury Note
7.50% due 05/15/02.................. 944,297
500 U.S. Treasury Bond
6.875% due 08/15/25................. 492,656
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $2,782,953)........ 2,835,530
--------------
SHORT-TERM INVESTMENT (a) (7.0%)
U.S. GOVERNMENT AGENCY
4,875 Federal Home Loan Mortgage Corp.
5.30% due 05/01/96 (Amortized Cost
$4,875,000)......................... 4,875,000
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $58,602,055)
(B)........................... 99.1% 69,451,750
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES......... 0.9 661,052
----- ------------
NET ASSETS.................... 100.0% $ 70,112,802
----- ------------
----- ------------
<FN>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation was $12,743,066 and the
aggregate gross unrealized depreciation was $1,893,127, resulting in net
unrealized appreciation of $10,849,939.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $58,602,055)............................. $69,451,750
Cash........................................................ 9,738
Receivable for:
Shares of beneficial interest sold...................... 700,402
Interest................................................ 77,451
Dividends............................................... 32,154
Prepaid expenses and other assets........................... 59,592
-----------
TOTAL ASSETS........................................... 70,331,087
-----------
LIABILITIES:
Payable for:
Plan of distribution fee................................ 60,416
Investment management fee............................... 48,332
Shares of beneficial interest repurchased............... 46,883
Accrued expenses and other payables......................... 62,654
-----------
TOTAL LIABILITIES...................................... 218,285
-----------
NET ASSETS:
Paid-in-capital............................................. 57,509,205
Net unrealized appreciation................................. 10,849,939
Accumulated net investment loss............................. (302,594)
Accumulated undistributed net realized gain................. 2,056,252
-----------
NET ASSETS............................................. $70,112,802
-----------
-----------
NET ASSET VALUE PER SHARE,
5,564,119 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$12.60
-----------
-----------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $18,317 foreign withholding tax).......... $ 251,647
Interest.................................................... 213,047
-----------
TOTAL INCOME........................................... 464,694
-----------
EXPENSES
Plan of distribution fee.................................... 319,952
Investment management fee................................... 255,962
Transfer agent fees and expenses............................ 43,780
Professional fees........................................... 29,277
Custodian fees.............................................. 28,777
Shareholder reports and notices............................. 23,585
Registration fees........................................... 21,505
Trustees' fees and expenses................................. 10,654
Other....................................................... 2,901
-----------
TOTAL EXPENSES......................................... 736,393
-----------
NET INVESTMENT LOSS.................................... (271,699)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments............................................. 2,493,880
Foreign exchange transactions........................... (663)
-----------
TOTAL GAIN............................................. 2,493,217
-----------
Net change in unrealized appreciation/ depreciation on:
Investments............................................. 14,416,787
Translation of other assets and liabilities denominated
in foreign currencies................................. 170
-----------
TOTAL APPRECIATION..................................... 14,416,957
-----------
NET GAIN............................................... 16,910,174
-----------
NET INCREASE................................................ $16,638,475
-----------
-----------
</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, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss......................................... $ (271,699) $ (451,320)
Net realized gain........................................... 2,493,217 1,085,550
Net change in unrealized appreciation/depreciation.......... 14,416,957 (9,565,932)
------------------ ----------------
NET INCREASE (DECREASE)................................ 16,638,475 (8,931,702)
Distributions from net realized gain........................ (1,036,713) (1,383,398)
Net decrease from transactions in shares of beneficial
interest.................................................. (937,244) (7,680,413)
------------------ ----------------
TOTAL INCREASE (DECREASE).............................. 14,664,518 (17,995,513)
NET ASSETS:
Beginning of period......................................... 55,448,284 73,443,797
------------------ ----------------
END OF PERIOD
(INCLUDING ACCUMULATED NET INVESTMENT LOSS OF $302,594
AND $30,895, RESPECTIVELY).............................. $70,112,802 $ 55,448,284
------------------ ----------------
------------------ ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (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, 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 APRIL 30, 1996 (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.
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 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.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
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
broker-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,
1996, it received approximately $90,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares.
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, 1996 aggregated
$10,413,522 and $15,375,247, respectively. Included in the aforementioned are
purchases and sales of U.S. Government securities of $552,500 and $1,071,617,
respectively.
<PAGE>
DEAN WITTER PRECIOUS METALS AND MINERALS TRUST
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 (UNAUDITED) CONTINUED
For the six months ended April 30, 1996, the Fund incurred brokerage commissions
of $20,415 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, 1996, the Fund had
transfer agent fees and expenses payable of approximately $7,100.
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, 1996 OCTOBER 31, 1995
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Sold............................................................. 7,425,472 $ 86,917,709 10,016,172 $104,853,425
Reinvestment of distributions.................................... 90,619 963,279 130,623 1,296,062
----------- -------------- ----------- ------------
7,516,091 87,880,988 10,146,795 106,149,487
Repurchased...................................................... (7,628,266) (88,818,232) (10,882,589) (113,829,900)
----------- -------------- ----------- ------------
Net decrease..................................................... (112,175) $ (937,244) (735,794) $ (7,680,413)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>
6. FEDERAL INCOME TAX STATUS
At 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.
<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
APRIL 30, FOR THE YEAR ENDED OCTOBER 31
1996 -------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value,
beginning of period............... $ 9.77 $ 11.45 $ 10.80 $ 7.87 $ 8.59 $ 8.57
---------- --------- --------- --------- --------- ---------
Net investment income (loss)....... (0.05) (0.08) (0.06) (0.04) (0.05) 0.06
Net realized and unrealized gain
(loss)............................ 3.07 (1.38) 0.73 2.97 (0.62) 0.03
---------- --------- --------- --------- --------- ---------
Total from investment operations... 3.02 (1.46) 0.67 2.93 (0.67) 0.09
---------- --------- --------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... -- -- -- -- (0.04) (0.07)
Net realized gain............... (0.19) (0.22) (0.02) -- (0.01) --
---------- --------- --------- --------- --------- ---------
Total dividends and
distributions..................... (0.19) (0.22) (0.02) -- (0.05) (0.07)
---------- --------- --------- --------- --------- ---------
Net asset value, end of period..... $ 12.60 $ 9.77 $ 11.45 $ 10.80 $ 7.87 $ 8.59
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
TOTAL INVESTMENT RETURN+........... 31.24%(1) (12.78)% 6.18% 37.23% (7.97)% 1.23%
RATIOS TO AVERAGE NET ASSETS:
Expenses........................... 2.30%(2) 2.29% 2.28% 2.79% 3.30% 2.18%(3)
Net investment income (loss)....... (0.85)%(2) (0.70)% (0.87)% (1.07)% (0.74)% 0.93%(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands......................... $70,113 $55,448 $73,444 $45,204 $15,135 $11,246
Portfolio turnover rate............ 17%(1) 23% 46% 25% 9% 11%
Average commission rate paid....... $0.0186 -- -- -- -- --
<FN>
- ---------------------
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(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 (0.39)%, respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES
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
(LOGO)
ANNUAL REPORT
OCTOBER 31, 1996
