<PAGE>
PROSPECTUS
FEBRUARY 24, 1995
Dean Witter New York Municipal Money Market Trust (the "Fund") is
a no-load, open-end, non-diversified management investment company whose
investment objective is to provide as high a level of daily income exempt from
federal and New York income tax as is consistent with stability of principal and
liquidity. The Fund has a Rule 12b-1 Plan of Distribution (see below). The Fund
seeks to achieve its objective by investing primarily in high quality New York
tax-exempt securities with short-term maturities, including Municipal Bonds,
Municipal Notes and Municipal Commercial Paper. (See "Investment Objective and
Policies.")
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY
THE U.S. GOVERNMENT. THERE IS NO ASSURANCE THAT THE FUND WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
In accordance with a Plan of Distribution with Dean Witter
Distributors Inc. pursuant to Rule 12b-1 under the Investment Company Act of
1940, the Fund is authorized to reimburse specific expenses incurred in
promoting the distribution of the Fund's shares. Reimbursement may in no event
exceed an amount equal to payments at the annual rate of 0.15% of the average
daily net assets of the Fund.
This Prospectus sets forth concisely the information you should
know before investing in the Fund. It should be read and retained for future
reference. Additional information about the Fund is contained in the Statement
of Additional Information, dated February 24, 1995, which has been filed with
the Securities and Exchange Commission, and which is available at no charge upon
request of the Fund at its address or at one of its telephone numbers listed on
this page. The Statement of Additional Information is incorporated herein by
reference.
<TABLE>
<S> <C>
Minimum initial investment......... $5,000
Minimum additional investment...... $ 100
</TABLE>
For information on opening an account, registration of shares, and other
information relating to a specific account, call Dean Witter Trust Company at
800-526-3143 (toll-free).
DEAN WITTER DISTRIBUTORS INC.
DISTRIBUTOR
TABLE OF CONTENTS
Prospectus Summary/2
Summary of Fund Expenses/3
Financial Highlights/4
The Fund and its Management/4
Investment Objective and Policies/5
Special Considerations Relating to New York
Tax-Exempt Securities/8
Investment Restrictions/10
Purchase of Fund Shares/10
Shareholder Services/12
Redemption and Repurchase of Fund Shares/15
Dividends, Distributions and Taxes/17
Additional Information/19
Financial Statements--December 31, 1994/21
Report of Independent Accountants/26
For information about the Fund, call:
- - 800-869-FUND (toll-free)
- - In New York State at 212-392-2550
- - For dividend information only
(when calling from outside New
York State) 800-869-RATE (toll-free)
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Dean Witter
New York Municipal Money Market Trust
Two World Trade Center
New York, New York 10048
(212) 392-2550
<PAGE>
PROSPECTUS SUMMARY
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
The The Fund is organized as a Trust, commonly known as a Massachusetts business trust, and is an open-end,
Fund non-diversified management investment company investing principally in short-term securities which are exempt
from federal and New York income tax.
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Offered Shares of beneficial interest with $0.01 par value. (see p. 19).
- ------------------------------------------------------------------------------------------------------------------------------------
Purchase of Shares Investments may be made:
- By wire
- By mail
- Through Dean Witter Reynolds Inc. account executives or other Selected Broker-Dealers
Purchases are at net asset value, without a sales charge. Minimum initial investment: $5,000. Subsequent
investments: $100 or more (by wire or by mail); $1,000 or more (through account executives) or $100 to $5,000
(by EasyInvest-TM-). Orders for purchase of shares are effective on day of receipt of payment in Federal funds
if payment is received by the Fund's transfer agent before 12:00 noon New York time (see p. 10).
- ------------------------------------------------------------------------------------------------------------------------------------
Investment To provide as high a level of daily income exempt from federal and New York income tax as is consistent with
Objective stability of principal and liquidity (see p. 5).
- ------------------------------------------------------------------------------------------------------------------------------------
Investment A portfolio of New York tax-exempt fixed-income securities with short-term maturities (see p. 5).
Policy
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Dean Witter InterCapital Inc. ("InterCapital"), the Investment Manager of the Fund and its wholly-owned
Manager subsidiary, Dean Witter Services Company Inc., serve in various investment management, advisory, management and
administrative capacities to ninety-one investment companies and other portfolios with assets of approximately
$66.9 billion at December 31, 1994 (see page 4). The monthly fee is at an annual rate of 1/2 of 1% of average
daily net assets, scaled down on assets over $500 million (see p. 4-5).
- ------------------------------------------------------------------------------------------------------------------------------------
Distributor and Dean Witter Distributors Inc. (the "Distributor") is the Fund's Distributor. The Fund is authorized to reimburse
Plan of specific expenses incurred in promoting the distribution of the Fund's shares pursuant to a Plan of Distribution
Distribution pursuant to Rule 12b-1 under the Investment Company Act of 1940. Reimbursement may in no event exceed an amount
equal to payments at the annual rate of .15 of 1% of average daily net assets of the Fund (see p. 12).
- ------------------------------------------------------------------------------------------------------------------------------------
Management The monthly fee is at an annual rate of 1/2 of 1% of average daily net assets, scaled down on assets over $500
Fee million (see p. 4).
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends Declared and automatically reinvested daily in additional shares; cash payments of dividends available monthly
(see p. 17).
- ------------------------------------------------------------------------------------------------------------------------------------
Reports Individual periodic account statements; annual and semi-annual Fund financial statements.
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption of Shares are redeemable by the shareholder at net asset value without any charge (see p. 15):
Shares - By check
- By telephone or wire instructions, with proceeds wired or mailed to a predesignated bank account
- By mail
- Via an automatic redemption procedure (see p. 17)
A shareholder's account is subject to possible involuntary redemption if its value falls below $1,000 (see p.
17).
- ------------------------------------------------------------------------------------------------------------------------------------
Risks The Fund invests principally in short-term fixed income securities issued or guaranteed by the State of New York
and its local governments which are subject to minimal risk of loss of income and principal. However, the
investor is directed to the discussions concerning "variable rate obligations" and "when-issued and delayed
delivery securities" on page 8 of the Prospectus and on page 15 of the Statement of Additional Information and
the discussions concerning "repurchase agreements" and "puts" on pages 16-17 of the Statement of Additional
Information, concerning any risks associated with such portfolio securities and management techniques. Since the
Fund concentrates its investments in New York tax-exempt securities, the Fund is affected by any political,
economic or regulatory developments affecting the ability of New York issuers to pay interest or repay principal
(see pages 20-27 of the Statement of Additional Information).
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ABOVE IS QUALIFIED IN ITS ENTIRETY BY THE DETAILED INFORMATION APPEARING
ELSEWHERE
IN THE PROSPECTUS AND IN THE STATEMENT OF ADDITIONAL INFORMATION.
2
<PAGE>
SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
The following table illustrates all expenses and fees that a shareholder of
the Fund will incur. Expenses and fees set forth in the table are for the year
ended December 31, 1994.
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES
- ---------------------------------------------------------------------------------------
<S> <C>
Maximum Sales Charge Imposed on Purchases.............................................. None
Maximum Sales Charge Imposed on Reinvested Dividends................................... None
Deferred Sales Charge.................................................................. None
Redemption Fees........................................................................ None
Exchange Fee........................................................................... None
</TABLE>
<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
- --------------------------------------------------------------------------------------
Management Fees....................................................................... 0.50%
12b-1 Fees............................................................................ 0.10%
Other Expenses........................................................................ 0.43%
Total Fund Operating Expenses......................................................... 1.03%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return and (2) redemption at the end of each time
period:.............................................................. $ 11 $ 33 $ 57 $ 126
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES OR PERFORMANCE. ACTUAL EXPENSES OF THE FUND MAY BE GREATER OR
LESS THAN THOSE SHOWN.
The purpose of this table is to assist the investor in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. For a more complete description of these costs and expenses, see
"The Fund and Its Management," "Purchase of Fund Shares--Plan of Distribution"
in this Prospectus.
3
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following ratios and per share data for a share of beneficial interest
outstanding throughout each period have been audited by Price Waterhouse LLP,
independent accountants. The financial highlights should be read in conjunction
with the financial statements, notes thereto and the unqualified report of
independent accountants which are contained in this Prospectus commencing on
page 21.
<TABLE>
<CAPTION>
FOR THE
PERIOD
MARCH 20,
1990*
FOR THE YEAR ENDED DECEMBER 31, THROUGH
--------------------------------------- DECEMBER 31,
1994 1993 1992 1991 1990
------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------- ------- ------- ------- -------------
Net investment income.... 0.018 0.014 0.019 0.035 0.045
Less dividends from net
investment income...... (0.018) (0.014) (0.019) (0.035) (0.045)
------- ------- ------- ------- -------------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------- ------- ------- ------- -------------
------- ------- ------- ------- -------------
TOTAL INVESTMENT
RETURN................. 1.78% 1.36% 1.86% 3.57% 4.69 %(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $39,629 $41,112 $45,126 $66,196 $101,294
Ratios to average net
assets:
Expenses............... 1.03% 1.03% 0.97% 0.87% 0.12 %(2)(3)
Net investment
income................ 1.75% 1.34% 1.86% 3.53% 5.66 %(2)(3)
<FN>
- ------------------------------
* COMMENCEMENT OF OPERATIONS.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) IF THE FUND HAD BORNE ALL EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
INVESTMENT MANAGER, THE ABOVE ANNUALIZED EXPENSE AND NET INVESTMENT INCOME
RATIOS WOULD HAVE BEEN 0.80% AND 4.98%, RESPECTIVELY.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
THE FUND AND ITS MANAGEMENT
- --------------------------------------------------------------------------------
Dean Witter New York Municipal Money Market Trust (the "Fund") is an
open-end non-diversified management investment company. The Fund was organized
as a trust of the type commonly known as a "Massachusetts business trust" on
December 28, 1989. Prior to February 19, 1993, the Fund's name was Dean
Witter/Sears New York Municipal Money Market Trust.
Dean Witter InterCapital Inc. ("InterCapital" or the "Investment Manager"),
whose address is Two World Trade Center, New York, New York 10048, is the Fund's
Investment Manager. The Investment Manager, which was incorporated in July,
1992, is a wholly-owned subsidiary of Dean Witter, Discover & Co. ("DWDC"), a
balanced financial services organization providing a broad range of nationally
marketed credit and investment products.
InterCapital and its wholly-owned subsidiary, Dean Witter Services Company
Inc., serve in various investment management, advisory, management and
administrative capacities to a total of ninety-one investment companies, thirty
of which are listed on the New York Stock Exchange, with combined total assets
including this Fund of approximately $64.9 billion as of December 31, 1994. The
Investment Manager also manages portfolios of pension plans, other institutions
and
4
<PAGE>
individuals which aggregated approximately $2.0 billion at such date.
The Fund has retained the Investment Manager to provide administrative
services, manage its business affairs and manage the investment of the Fund's
assets, including the placing of orders for the purchase and sale of portfolio
securities. InterCapital has retained Dean Witter Services Company Inc. to
perform the aforementioned administrative services for the Fund. The Fund's
Board of Trustees reviews the various services provided by or under the
direction of the Investment Manager to ensure that the Fund's general investment
policies and programs are being properly carried out and that administrative
services are being provided to the Fund in a satisfactory manner.
As full compensation for the services and facilities furnished to the Fund
and expenses of the Fund assumed by the Investment Manager, the Fund pays the
Investment Manager monthly compensation calculated daily at an annual rate of
0.50% of the daily net assets of the Fund up to $500 million, scaled down at
various asset levels to 0.25% on assets over $3 billion. For the fiscal year
ended December 31, 1994, the Fund accrued total compensation to the Investment
Manager amounting to 0.50% of the Fund's average daily net assets and the Fund's
total expenses amounted to 1.03% of the Fund's average daily net assets.
INVESTMENT OBJECTIVE AND POLICIES
- --------------------------------------------------------------------------------
The investment objective of the Fund is to provide as high a level of daily
income exempt from federal and New York income tax as is consistent with
stability of principal and liquidity. It is a fundamental policy of the Fund
that at least 80% of its total assets will be invested in tax-exempt Municipal
Obligations and at least 65% of the Fund's total assets will be invested in New
York Municipal Obligations. The interest on New York Municipal Obligations is
exempt from Federal, New York State and New York City income taxes. Municipal
Obligations other than New York Municipal Obligations are exempt from Federal
tax but not from New York State and New York City taxes. However, certain
Municipal Obligations in which the Fund may invest without limit may subject
certain investors to the alternative minimum tax and, therefore, a substantial
portion of the income produced by the Fund may be taxable for such investors
under the alternative minimum tax. The Fund, therefore, may not ordinarily be a
suitable investment for investors who are subject to the alternative minimum
tax. The suitability of the Fund for these investors will depend upon a
comparison of the after-tax yield likely to be provided from the Fund to
comparable tax-exempt investments not subject to such tax and also to comparable
fully taxable investments in light of each such investor's tax position (see
"Dividends, Distributions and Taxes"). This policy and the Fund's investment
objective may not be changed without a vote of a majority of the Fund's
outstanding voting securities, as defined in the Investment Company Act of 1940,
as amended (the "Act"). There is no assurance that the objective will be
achieved.
The Fund seeks to achieve its investment objective by investing in high
quality tax-exempt securities with short-term maturities (remaining maturities
of thirteen months or less) as follows. Such securities will include (i) New
York Municipal Bonds, New York Municipal Notes and New York Municipal Commercial
Paper, which are rated at the time of purchase in one of the two highest rating
categories for debt obligations by at least two nationally recognized
statistical rating organizations ("NRSROS"), primarily Moody's Investors
Service, Inc. ("Moody's") or Standard and Poor's Corporation ("S&P"), or one
NRSRO if the obligation is rated by only one NRSRO. Unrated obligations may be
purchased if they are determined to be of comparable quality by the Fund's
Trustees.
5
<PAGE>
Up to 35% of the Fund's total assets may be invested in securities exempt
from federal income tax but not from New York State and New York City income
taxes ("non-New York tax-exempt securities") and up to 20% of the Fund's total
assets may be invested in taxable securities. In addition, the Fund may
temporarily invest more than 20% of its total assets in taxable securities and
more than 35% of its total assets in non-New York tax-exempt securities to
maintain a "defensive" posture when, in the opinion of the Investment Manager,
prevailing market or financial conditions so warrant. The types of taxable
securities in which the Fund may temporarily invest are limited to the following
short-term fixed-income securities (maturing in one year or less from the time
of purchase); (i) obligations of the United States Government or its agencies,
instrumentalities or authorities; (ii) commercial paper rated P-1 by Moody's or
A-1 by S&P; (iii) certificates of deposit of domestic banks with assets of $1
billion or more; and (iv) repurchase agreements with respect to any of the
foregoing portfolio securities.
Municipal Bonds and Municipal Notes are debt obligations of a state, its
cities, municipalities and municipal agencies which generally have maturities,
at the time of their issuance, of either one year or more (Bonds) or from six
months to three years (Notes). Municipal Commercial Paper refers to short-term
obligations of municipalities which may be issued at a discount and are
sometimes referred to as Short-Term Discount Notes. Any Municipal Bond or
Municipal Note which depends directly or indirectly on the credit of the Federal
Government, its agencies or instrumentalities shall be considered to have a
Moody's rating of Aaa or S&P rating of AAA. An obligation shall be considered a
New York Municipal Bond, New York Municipal Note or New York Municipal
Commercial Paper only if, in the opinion of bond counsel, the interest payable
therefrom is exempt from both federal income tax and New York personal income
tax.
The foregoing percentage and rating limitations apply at the time of
acquisition of a security based on the last previous determination of the Fund's
net asset value. Any subsequent change in any rating by a rating service or
change in percentages resulting from market fluctuations or other changes in
total assets will not require elimination of any security from the Fund's
portfolio. However, in accordance with procedures adopted by the Fund's Trustees
pursuant to federal securities regulations governing money market funds, if the
Investment Manager becomes aware that a portfolio security has received a new
rating from an NRSRO that is below the second highest rating, then, unless the
security is disposed of within five days, the Investment Manager will perform a
creditworthiness analysis of any such downgraded securities, which will be
reported to the Trustees who will, in turn, determine whether the securities
continue to present minimal credit risks to the Fund.
The ratings assigned by NRSROs represent their opinions as to the quality of
the securities which they undertake to rate (see the Appendix to the Statement
of Additional Information). It should be emphasized, however, that the ratings
are general and not absolute standards of quality.
The two principal classifications of Municipal Bonds, Notes and Commercial
Paper are "general obligation" and "revenue" bonds, notes or commercial paper.
General obligation bonds, notes or commercial paper are secured by the issuer's
pledge of its faith, credit and taxing power for the payment of principal and
interest. Issuers of general obligation bonds, notes or commercial paper include
a state, its counties, cities, towns and other governmental units. Revenue
bonds, notes or commercial paper are payable from the revenues derived from a
particular facility or class of facilities or, in some cases, from specific
revenue sources. Revenue bonds, notes or commercial paper are issued for a wide
variety of purposes, including the financing of electric, gas, water and sewer
systems and other public utilities; industrial development and pollution control
facilities; single and multi-family housing units; public buildings and
facilities;
6
<PAGE>
air and marine ports; transportation facilities such as toll roads, bridges and
tunnels; and health and educational facilities such as hospitals and
dormitories. They rely primarily on user fees to pay debt service, although the
principal revenue source is often supplemented by additional security features
which are intended to enhance the creditworthiness of the issuer's obligations.
In some cases, particularly revenue bonds issued to finance housing and public
buildings, a direct or implied "moral obligation" of a governmental unit may be
pledged to the payment of debt service. In other cases, a special tax or other
charge may augment user fees.
Included within the revenue bonds category are participations in lease
obligations or installment purchase contracts (hereinafter collectively called
"lease obligations") of municipalities. State and local governments issue lease
obligations to acquire equipment and facilities.
Lease obligations may have risks not normally associated with general
obligation or other revenue bonds. Leases and installment purchase or
conditional sale contracts (which may provide for title to the leased asset to
pass eventually to the issuer) have developed as a means for governmental
issuers to acquire property and equipment without the necessity of complying
with the constitutional and statutory requirements generally applicable for the
issuance of debt. Certain lease obligations contain "non-appropriation" clauses
that provide that the governmental issuer has no obligation to make future
payments under the lease or contract unless money is appropriated for such
purpose by the appropriate legislative body on an annual or other periodic
basis. Consequently, continued lease payments on those lease obligations
containing "non-appropriation" clauses are dependent on future legislative
actions. If such legislative actions do not occur, the holders of the lease
obligation may experience difficulty in exercising their rights, including
disposition of the property.
Lease obligations represent a relatively new type of financing that has not
yet developed the depth of marketability associated with more conventional
municipal obligations, and, as a result, certain of such lease obligations may
be considered illiquid securities. To determine whether or not the Fund will
consider such securities to be illiquid (the Fund may not invest more than ten
percent of its net assets in illiquid securities), the Trustees of the Fund have
established guidelines to be utilized by the Fund in determining the liquidity
of a lease obligation. The factors to be considered in making the determination
include: (1) the frequency of trades and quoted prices for the obligation; (2)
the number of dealers willing to purchase or sell the security and the number of
other potential purchasers; (3) the willingness of dealers to undertake to make
a market in the security; and (4) the nature of the marketplace trades,
including the time needed to dispose of the security, the method of soliciting
offers, and the mechanics of the transfer.
The Fund is classified as a non-diversified investment company under the Act
and as such is not limited by the Act in the proportion of its assets that it
may invest in the obligations of a single issuer. However, the Fund intends to
conduct its operations so as to qualify as a "regulated investment company"
under Subchapter M of the Internal Revenue Code (the "Code"). See "Dividends,
Distribution and Taxes." In order to qualify, among other requirements, the Fund
will limit its investments so that at the close of each quarter of the taxable
year, (i) not more than 25% of the market value of the Fund's total assets will
be invested in the securities of a single issuer, and (ii) with respect to 50%
of the market value of its total assets not more than 5% will be invested in the
securities of a single issuer and the Fund will not own more than 10% of the
outstanding voting securities of a single issuer. To the extent that a
relatively high percentage of the Fund's assets may be invested in the
obligations of a limited number of issuers, the Fund's portfolio securities will
be more susceptible
7
<PAGE>
to any single economic, political or regulatory occurrence than the portfolio
securities of a diversified investment company. Additionally, the Fund's yield
will fluctuate to a greater extent than that of a diversified investment company
as a result of changes in the financial condition or in the market's assessment
of the various issuers. The limitations described in this paragraph are not
fundamental policies and may be revised to the extent applicable Federal income
tax requirements are revised.
The Fund may invest more than 25% of its total assets in industrial
development and pollution control bonds (two kinds of tax-exempt Municipal
Bonds) whether or not the users of facilities financed by such bonds are in the
same industry. In cases where such users are in the same industry, there may be
additional risk to the Fund in the event of an economic downturn in such
industry, which may result generally in a lowered need for such facilities and a
lowered ability of such users to pay for the use of such facilities.
The high quality, short-term fixed income securities in which the Fund
principally invests are guaranteed by state and local governments and are
subject to minimal risk of loss of income and principal.
PORTFOLIO MANAGEMENT
Although the Fund will generally acquire securities for investment with the
intent of holding them to maturity and will not seek profits through short-term
trading, the Fund may dispose of any security prior to its maturity to meet
redemption requests. Securities may also be sold when the Fund's Investment
Manager believes such disposition to be advisable on the basis of a revised
evaluation of the issuer or based upon relevant market considerations. There may
be occasions when, as a result of maturities of portfolio securities or sale of
Fund shares, or in order to meet anticipated redemption requests, the Fund may
hold cash which is not earning income.
The Fund anticipates that the average weighted maturity of the portfolio
will be 90 days or less. The relatively short-term nature of the Fund's
portfolio is expected to result in a lower yield than portfolios comprised of
longer-term tax-exempt securities.
VARIABLE RATE AND FLOATING RATE OBLIGATIONS. The interest rates payable on
certain Municipal Bonds and Municipal Notes are not fixed and may fluctuate
based upon changes in market rates. Municipal obligations of this type are
called "variable rate" or "floating rate" obligations. The interest rate payable
on a variable rate obligation is adjusted either at predesignated periodic
intervals or whenever there is a change in the market rate of interest on which
the interest rate payable is based.
WHEN-ISSUED AND DELAYED DELIVERY SECURITIES. The Fund may purchase
tax-exempt securities on a when-issued or delayed delivery basis; i.e., delivery
and payment can take place a month or more after the date of the transaction.
These securities are subject to market fluctuation and no interest accrues to
the purchaser prior to settlement. At the time the Fund makes the commitment to
purchase such securities, it will record the transaction and thereafter reflect
the value, each day, of such securities in determining its net asset value.
BROKERAGE ALLOCATION. Brokerage commissions are not normally charged on
purchases and sales of short-term municipal obligations, but such transactions
may involve transaction costs in the form of spreads between bid and asked
prices. Pursuant to an order of the Securities and Exchange Commission, the Fund
may effect principal transactions in certain money market instruments with Dean
Witter Reynolds Inc. ("DWR"), a broker-dealer affiliate of InterCapital. In
addition, the Fund may incur brokerage commissions on transactions conducted
through DWR.
SPECIAL CONSIDERATIONS RELATING TO NEW YORK TAX-EXEMPT SECURITIES
Since the Fund concentrates its investments in New York tax-exempt
securities, the Fund is affected by any political, economic or regulatory
develop-
8
<PAGE>
ments affecting the ability of New York tax-exempt issuers to pay interest or
repay principal. Investors should be aware that certain issuers of New York
tax-exempt securities have experienced serious financial difficulties in recent
years. A reoccurrence of these difficulties may impair the ability of certain
New York issuers to maintain debt service on their obligations.
The fiscal stability of New York State (the "State") is related to the
fiscal stability of the State's municipalities, its Agencies and Authorities
(which generally finance, construct and operate revenue-producing public benefit
facilities). This is due in part to the fact that Agencies, Authorities and
local governments in financial trouble often seek State financial assistance.
The experience has been that if New York City (the "City") or any of the
Agencies or Authorities suffers serious financial difficulty, both the ability
of the State, the City, the State's political subdivisions, the Agencies and the
Authorities to obtain financing in the public credit markets and the market
price of outstanding New York tax-exempt securities are adversely affected.
Over the long term, the State and City face potential economic problems. The
City accounts for a large portion of the State's population and personal income,
and the City's financial health affects the State in numerous ways. The State
has historically been one of the wealthiest states in the nation. For decades,
however, the State has grown more slowly than the nation as a whole, gradually
eroding its relative economic affluence. The causes of this relative decline are
varied and complex, in many cases involving national and international
developments beyond the State's control. Statewide, urban centers have
experienced significant changes involving migration of the more affluent to the
suburbs and an influx of generally less affluent residents. Regionally, the
older Northeast cities have suffered because of the relative success that the
South and the West have had in attracting people and business. The City has also
had to face greater competition as other major cities have developed financial
and business capabilities which make them less dependent on the specialized
services traditionally available almost exclusively in the City.
The State has for many years had a very high state and local tax burden
relative to other states. The existence of this tax burden limits the State's
ability to impose higher taxes in the event of future financial difficulties.
The State and its localities have used these taxes to develop and maintain their
transportation network, public schools and colleges, public health systems,
other social services and recreational facilities. Despite these benefits, the
burden of state and local taxation, in combination with the many other causes of
regional economic dislocation, has contributed to the decisions of some business
and individuals to relocate outside, or not to locate within, the State. Certain
manufacturing facilities have relocated to other states. This trend has been
partially offset by the location of some manufacturing facilities in the State
and by the expansion of existing facilities in the State. While no sustained
reversal of the State's relative economic position has been projected, the
actions taken to date, in combination with many other causes of regional
economic changes, have slowed this trend. Further reduction in Federal spending
could materially and adversely affect the financial condition and budget
projections of the State's localities.
On January 6, 1992, Moody's lowered to Baa-1 from A its ratings on about
$14.2 billion of New York State appropriations backed debt. Moody's also
announced that it had put New York State general obligation debt rated A under
review for possible downgrade in the coming months. On June 27, 1994 Moody's
reconfirmed its A rating on the State's general obligation long-term
indebtedness.
On January 13, 1992, S&P lowered its rating on New York State's general
obligation bonds from A to A-. On November 12, 1992, S&P continued its January
rating and reiterated its negative rating outlook assessment on the State's
general obligation debt. On April 26, 1993, S&P raised its outlook to
9
<PAGE>
positive and, on June 27, 1994, confirmed its A- rating.
For a more detailed discussion of New York economic factors, see the
Statement of Additional Information.
The summary information furnished above and in the Statement of Additional
Information is based on official statements prepared by the State of New York
and the City of New York and their authorities in connection with their
borrowings and contains such information as the Fund deems relevant in
considering an investment in the Fund. It does not purport to be a complete
description of the considerations contained therein.
INVESTMENT RESTRICTIONS
- --------------------------------------------------------------------------------
The investment restrictions listed below are among the restrictions which
have been adopted by the Fund as fundamental policies. Under the Act, a
fundamental policy may not be changed without the vote of a majority of the
outstanding voting securities of the Fund, as defined in the Act.
For purposes of the following restrictions: (a) an "issuer" of a security is
the entity whose assets and revenues are committed to the payment of interest
and principal on that particular security, provided that the guarantee of a
security will be considered a separate security and provided further that a
guarantee of a security shall not be deemed a security issued by the guarantor
if the value of all securities issued or guaranteed by the guarantor and owned
by the Fund does not exceed 10% of the value of the total assets of the Fund;
(b) a "taxable security" is any security the interest on which is subject to
federal income tax; and (c) all percentage limitations apply immediately after a
purchase or initial investment, and any subsequent change in any applicable
percentage resulting from market fluctuations or other changes in total assets
does not require elimination of any security from the portfolio.
The Fund may not:
1. Make loans of money or securities, except:
(a) by the purchase of debt obligations in which the Fund may invest consistent
with its investment objective and policies; and (b) by investment in repurchase
agreements.
2. Invest 25% or more of the value of its total
assets in taxable securities of issuers in any one industry (industrial
development and pollution control bonds are grouped into industries based upon
the business in which the issuers of such obligations are engaged). This
restriction does not apply to obligations issued or guaranteed by the United
States Government, its agencies or instrumentalities or to Municipal
Obligations, including those issued by the State of New York or its political
subdivisions, or to domestic bank obligations.
PURCHASE OF FUND SHARES
- --------------------------------------------------------------------------------
The Fund offers its own shares for sale to the public on a continuous basis,
without a sales charge. Pursuant to a Distribution Agreement between the Fund
and Dean Witter Distributors Inc., (the "Distributor"), an affiliate of the
Investment Manager, shares of the Fund are distributed by the Distributor and
offered by DWR and other dealers who have entered into agreements with the
Distributor ("Selected Broker-Dealers"). The principal executive office of the
Distributor is located at Two World Trade Center, New York, New York 10048. The
offering price of the shares will be at their net asset value next determined
(see "Determination of Net Asset Value" below) after receipt of a purchase order
and acceptance by Dean Witter Trust Company (the "Transfer Agent") in proper
form and accompanied by payment in Federal Funds (i.e., monies of member banks
within the Federal Reserve System held
10
<PAGE>
on deposit at a Federal Reserve Bank) available to the Fund for investment.
Shares commence earning income on the day following the date of purchase. Share
certificates will not be issued unless requested in writing by the shareholder.
To initiate purchase by mail or wire, a completed Investment Application
(contained in the Prospectus) must be sent directly to Dean Witter Trust
Company, at P.O. Box 1040, Jersey City, N.J. 07303. Checks should be made
payable to the Dean Witter New York Municipal Money Market Trust and sent to
Dean Witter Trust Company at the above address. Purchases by wire must be
preceded by a call to the Transfer Agent advising it of the purchase (see
Investment Application or the front cover of this Prospectus for the telephone
number) and must be wired to The Bank of New York, for credit to the Account of
Dean Witter Trust Company, Harborside Financial Center, Plaza Two, Jersey City,
New Jersey, Account No. 8900188413. Wire purchase instructions must include the
name of the Fund and the shareholder's account number. Purchases made by check
are normally effective within two business days for checks drawn on Federal
Reserve System member banks, and longer for most other checks. Wire purchases
received by the Transfer Agent prior to 12 noon New York time are normally
effective that day, and wire purchases received after 12 noon New York time are
normally effective the next business day. Initial investments must be at least
$5,000, although the Fund, at its discretion, may accept initial investments of
smaller amounts, not less than $1,000. Subsequent investments must be $100 or
more and may be made through the Transfer Agent. The Fund will waive the minimum
initial investment for the automatic reinvestment of distributions from certain
unit investment trusts. The Fund and the Distributor reserve the right to reject
any purchase order.
Sales personnel are compensated for selling shares of the Fund at the time
of their sale by the Distributor and/or Selected Broker-Dealer. In addition,
some sales personnel of the Selected Broker-
Dealer will receive various types of non-cash compensation as special sales
incentives, including trips, educational and/or business seminars and
merchandise.
Orders for the purchase of Fund shares placed by customers through DWR or
other Selected Broker-Dealers with payment in clearing house funds will be
transmitted to the Fund with payment in Federal Funds on the business day
following the day the order is placed by the customer with DWR or another
Selected Broker-Dealer. Investors desiring same day effectiveness should wire
Federal Funds directly to the Transfer Agent. An order procedure pursuant to
which customers can, upon request; (a) have the proceeds from the sale of listed
securities invested in shares of the Fund on the day following the day the
customer receives such proceeds in his or her DWR or other Selected
Broker-Dealer brokerage account; and (b) pay for the purchase of certain listed
securities by automatic liquidation of Fund shares owned by the customer. In
addition, there is an automatic purchase procedure whereby consenting DWR or
another Selected Broker-Dealer customers who are shareholders of the Fund will
have free cash credit balances in their DWR or another Selected Broker-Dealer
brokerage accounts as of the close of business (4:00 P.M., New York time) on the
last business day of each week (where such balances do not exceed $5,000)
automatically invested in shares of the Fund the next following business day.
Investors with free cash credit balances (i.e., immediately available funds) in
brokerage accounts at DWR or other Selected Broker-Dealers will not have any of
such funds invested in the Fund until the business day after the customer places
an order with DWR or other Selected Broker-Dealers to purchase shares of the
Fund and will not receive the daily dividend which would have been received had
such funds been invested in the Fund on the day the order was placed with DWR or
other Selected Broker-Dealers. Accordingly, DWR or other Selected Broker-Dealers
may have the use of such free credit balances during such period.
11
<PAGE>
PLAN OF DISTRIBUTION
The Fund has entered into a Plan of Distribution with the Distributor,
pursuant to Rule 12b-1 under the Act, whereby the expenses of certain activities
in connection with the distribution of the Fund's shares are reimbursed. The
principal activities and services which may be provided by the Distributor, DWR,
its affiliates or any other Selected Broker-Dealers under the Plan include: (1)
compensation to, and expenses of, DWR's and other Selected Broker-Dealers'
account executives and other employees, including overhead and telephone
expenses; (2) sales incentives and bonuses to sales representatives and to
marketing personnel in connection with promoting sales of the Fund's shares; (3)
expenses incurred in connection with promoting sales of the Fund's shares; (4)
preparing and distributing sales literature; and (5) providing advertising and
promotional activities, including direct mail solicitation and television,
radio, newspaper, magazine and other media advertisements. Reimbursements for
these services will be made in monthly payments by the Fund which will in no
event exceed an amount equal to a payment at the annual rate of 0.15 of 1% of
the Fund's average daily net assets. For the fiscal year ended December 31,
1994, the fee accrued was equal to payment at an annual rate of .10% of the
Fund's average daily net assets. Expenses incurred pursuant to the Plan in any
fiscal year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year.
DETERMINATION OF NET ASSET VALUE
The net asset value per share of the Fund is determined as of 4:00 p.m. New
York time on each day that the New York Stock Exchange is open by taking the
value of all assets of the Fund, subtracting its liabilities and dividing by the
number of shares outstanding. The net asset value per share will not be
determined on Good Friday and on such other federal and non-federal holidays as
are observed by the New York Stock Exchange.
The Fund utilizes the amortized cost method in valuing its portfolio
securities, which method involves valuing a security at its cost adjusted by a
constant amortization to maturity of any discount or premium, regardless of the
impact of fluctuating interest rates on the market value of the instrument. The
purpose of this method of calculation is to facilitate the maintenance of a
constant net asset value per share of $1.00. However, there can be no assurance
that the $1.00 net asset value will be maintained.
SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
SYSTEMATIC WITHDRAWAL PLAN. A systematic withdrawal plan is available for
shareholders who own or purchase shares of the Fund having a minimum value of at
least $5,000. The plan provides for monthly or quarterly (March, June,
September, December) checks in any dollar amount not less than $25, or in any
whole percentage of the account balance, on an annualized basis. The shares will
be redeemed at their net asset value determined, at the shareholder's option, on
the tenth or twenty-fifth day (or next business day) of the relevant month or
quarter and normally a check for the proceeds will be mailed by the Transfer
Agent, or amounts credited to a shareholder's DWR or other Selected Broker-
Dealer brokerage account, within five days after the date of redemption. A
shareholder wishing to make this election should do so on the Investment
Application. The withdrawal plan may be terminated at any time by the Fund.
EASYINVEST-TM-. Shareholders may subscribe to EasyInvest, an automatic
purchase plan which provides for any amount from $100 to $5,000 to be
transferred automatically from a checking or savings account, on a semi-monthly,
monthly or quarterly basis, to the Transfer Agent for investment in shares of
the Fund. Shares purchased through EasyInvest will be added to the shareholder's
existing account at the net asset value calculated the next business day after
the transfer of funds is effected.
12
<PAGE>
EXCHANGE PRIVILEGE. An "Exchange Privilege," that is, the privilege of
exchanging shares of certain Dean Witter Funds for shares of the Fund, exists
whereby shares of various Dean Witter Funds which are open-end investment
companies sold with either a front-end (at time of purchase) sales charge ("FESC
funds") or a contingent deferred (at time of redemption) sales charge ("CDSC
funds") may be exchanged for shares of the Fund, Dean Witter U.S. Government
Money Market Trust, Dean Witter Tax-Free Daily Income Trust, Dean Witter
California Tax-Free Daily Income Trust and Dean Witter New York Municipal Money
Market Trust (which five funds are hereinafter called "money market funds"), and
for shares of Dean Witter Short-Term U.S. Treasury Trust, Dean Witter Limited
Term Municipal Trust and Dean Witter Short-Term Bond Fund (the foregoing eight
non-FESC or CDSC funds are hereinafter collectively referred to in this section
as the "Exchange Funds"). When exchanging into a money market fund from an FESC
fund or a CDSC fund, shares of the FESC fund or the CDSC fund are redeemed at
their next calculated net asset value and exchanged for shares of the money
market fund at their net asset value determined the following business day. An
exchange from an FESC fund or a CDSC fund to an Exchange Fund that is not a
money market fund is on the basis of the next calculated net asset value per
share of each fund after the exchange order is received. Subsequently, shares of
these Exchange Funds received in an exchange for shares of an FESC fund
(regardless of the type of fund originally purchased) may be redeemed and
exchanged for shares of the Exchange Funds, FESC funds or CDSC funds (however,
shares of CDSC funds, including shares acquired in exchange for (i) shares of
FESC funds or (ii) shares of the Exchange Funds which were acquired in exchange
for shares of FESC funds, may not be exchanged for shares of FESC funds).
Additionally, shares of the money market funds received in an exchange for
shares of a CDSC fund (regardless of the type of fund originally purchased) may
be redeemed and exchanged for shares of the Exchange Funds or CDSC funds.
Ultimately, any applicable contingent deferred sales charge ("CDSC") will have
to be paid upon redemption of shares originally purchased from a CDSC fund. (If
shares of the Exchange Funds received in exchange for shares originally
purchased from a CDSC fund are exchanged for shares of another CDSC fund having
a different CDSC schedule than that of the CDSC fund from which the Exchange
Funds were acquired, the shares will be subject to the higher CDSC schedule.)
During the period of time the shares originally purchased from a CDSC fund
remain in the Exchange Fund (calculated from the last day of the month in which
the Exchange Fund shares were acquired), the holding period (for the purpose of
determining the rate of the CDSC) is frozen. If those shares are subsequently
re-
exchanged for shares of a CDSC fund, the holding period previously frozen when
the first exchange was made resumes on the last day of the month in which shares
of a CDSC fund are reacquired. Thus, the CDSC is based upon the time (calculated
as described above) the shareholder was invested in a CDSC fund. However, in the
case of shares exchanged into an Exchange Fund on or after April 23, 1990, upon
a redemption of shares which results in a CDSC being imposed, a credit (not to
exceed the amount of the CDSC) will be given in an amount equal to the Exchange
Fund 12b-1 distribution fees incurred on or after that date which are
attributable to those shares (see "Purchase of Fund Shares -- Plan of
Distribution" in the respective Exchange Funds Prospectuses for a description of
Exchange Fund distribution fees). Exchanges involving FESC funds or CDSC funds
may be made after the shares of the FESC fund or CDSC fund acquired by purchase
(not by exchange or dividend reinvestment) have been held for thirty days. There
is no waiting period for exchanges of shares acquired by exchange or dividend
reinvestment.
Exchange Privilege accounts may also be maintained for shareholders of the
money market funds who acquired their shares in exchange for shares of various
TCW/DW Funds, a group of funds distributed by the Distributor for which TCW
Funds
13
<PAGE>
Management, Inc. serves as Adviser, under the terms and conditions described in
the Prospectus and Statement of Additional Information of each TCW/DW Fund.
Purchases and exchanges should be made for investment purposes only. A
pattern of frequent exchanges may be deemed by the Investment Manager to be
abusive and contrary to the best interests of the Fund's other shareholders and,
at the Investment Manager's discretion, may be limited by the Fund's refusal to
accept additional purchases and/ or exchanges from the investor. Although the
Fund does not have any specific definition of what constitutes a pattern of
frequent exchanges, and will consider all relevant factors in determining
whether a particular situation is abusive and contrary to the best interests of
the Fund and its other shareholders, investors should be aware that the Fund and
each of the other Dean Witter Funds may in their discretion limit or otherwise
restrict the number of times this Exchange Privilege may be exercised by any
investor. Any such restriction will be made by the Fund on a prospective basis
only, upon notice to the shareholder not later than ten days following such
shareholder's most recent exchange.
The Exchange Privilege may be terminated or revised at any time by the Fund
and/or any of such Dean Witter Funds for which shares of the Fund have been
exchanged, upon such notice as may be required by applicable regulatory agencies
(presently sixty days prior written notice for termination or material
revision), provided that six months prior written notice of termination will be
given to the shareholders who hold shares of the Exchange Funds, TCW/DW North
American Government Income Trust, TCW/DW Income and Growth Fund, TCW/DW Balanced
Fund and TCW/DW North American Intermediate Income Trust pursuant to the
Exchange Privilege, and provided further that the Exchange Privilege may be
terminated or materially revised without notice under certain unusual
circumstances described in the Statement of Additional Information. Shareholders
maintaining margin accounts with DWR or other Selected Broker-Dealers are
referred to their account executive regarding restrictions on exchange of shares
of the Fund pledged in the margin account.
The current prospectus for each fund describes its investment objective(s)
and policies, and shareholders should obtain one and read it carefully before
investing. Exchanges are subject to the minimum investment requirement and any
other conditions imposed by each fund. In the case of any shareholder holding a
share certificate or certificates, no exchanges may be made until all applicable
share certificates have been received by the Transfer Agent and deposited in the
shareholder's account. An exchange will be treated for federal income tax
purposes the same as a repurchase or redemption of shares on which the
shareholder has realized a capital gain or loss. However, the ability to deduct
capital losses on an exchange may be limited in situations where there is an
exchange of shares within ninety days after the shares are purchased. The
Exchange Privilege is only available in states where an exchange may legally be
made.
If DWR or another Selected Broker-Dealer is the current dealer of record and
its account numbers are part of the account information, shareholders may
initiate an exchange of shares of the Fund for shares of any of the above Dean
Witter Funds pursuant to this Exchange Privilege by contacting their DWR or
other Selected Broker-Dealer account executive (no Exchange Privilege
Authorization Form is required). Other shareholders (and those shareholders who
are clients of DWR or another Selected Broker-Dealer but who wish to make
exchanges directly by writing or telephoning the Transfer Agent) must complete
and forward to the Transfer Agent an Exchange Privilege Authorization Form,
copies of which may be obtained from the Transfer Agent, to initiate an
exchange. If the Authorization Form is used, exchanges may be made in writing or
by contacting the Transfer Agent at (800) 526-3143 (toll free). The Fund will
employ reasonable procedures to confirm that exchange instructions communicated
over the telephone are genuine. Such procedures may include requiring various
forms of
14
<PAGE>
personal identification such as name, mailing address, social security or other
tax identification number and DWR or other Selected Broker-Dealer account number
(if any). Telephone instructions may also be recorded. If such procedures are
not employed, the Fund may be liable for any losses due to unauthorized or
fraudulent instructions. Telephone exchange instructions will be accepted if
received by the Transfer Agent between 9:00 a.m. and 4:00 p.m. New York time, on
any day the New York Stock Exchange is open. Any shareholder wishing to make an
exchange who has previously filed an Exchange Privilege Authorization Form and
who is unable to reach the Fund by telephone should contact his or her DWR or
other Selected Broker-Dealer account executive, if appropriate, or make a
written exchange request. Shareholders are advised that during periods of
drastic economic or market changes, it is possible that the telephone exchange
procedures may be difficult to implement, although this has not been the
experience of the Dean Witter Funds in the past.
For further information regarding the Exchange Privilege shareholders should
contact their DWR or other Selected Broker-Dealer account executive or the
Transfer Agent.
REDEMPTION AND REPURCHASE OF FUND SHARES
- --------------------------------------------------------------------------------
A shareholder may withdraw all or any of his or her investments at any time,
without penalty or charge, by redeeming shares through the Transfer Agent at the
net asset value per share next determined (see "Purchase of Fund Shares --
Determination of Net Asset Value") after the receipt of a redemption request
meeting the applicable requirements as follows (all of which are subject to the
General Redemption Requirements set forth below):
1. BY CHECK
The Transfer Agent will supply blank checks to any shareholder who has
requested them on an Investment Application. The shareholder may make checks
payable to the order of anyone in any amount not less than $500 (checks written
in amounts under $500 will not be honored by the Transfer Agent). Shareholders
must sign checks exactly as their shares are registered. If the account is a
joint account, the check may contain one signature unless the joint owners have
specified on an Investment Application that all owners are required to sign
checks. Only shareholders having accounts in which no share certificates have
been issued will be permitted to redeem shares by check.
Shares will be redeemed at their net asset value next determined (see
"Purchase of Fund Shares -- Determination of Net Asset Value") after receipt by
the Transfer Agent of a check which does not exceed the value of the account.
Payment of the proceeds of a check will normally be made on the next business
day after receipt by the Transfer Agent of the check in proper form. Shares
purchased by check (including a certified or bank cashier's check) are not
normally available to cover redemption checks until fifteen days after receipt
of the check used for investment by the Transfer Agent. The Transfer Agent will
not honor a check in an amount exceeding the value of the account at the time
the check is presented for payment.
2. BY TELEPHONE OR WIRE INSTRUCTIONS WITH PAYMENT TO PREDESIGNATED BANK ACCOUNT
A shareholder may redeem shares by telephoning or sending wire instructions
to the Transfer Agent. Payment will be made by the Transfer Agent to the
shareholder's bank account at any commercial bank designated by the shareholder
in an Investment Application, by wire if the amount is $1,000 or more and the
shareholder so requests, and otherwise by mail. Normally, the Transfer Agent
will transmit payment the next business day following receipt of a request for
redemption in proper form. Only shareholders having accounts in which
15
<PAGE>
no share certificates have been issued will be permitted to redeem shares by
telephone or wire instructions.
DWR and other participating Selected Broker-Dealers have informed the
Distributor and the Fund that, on behalf of and as agent for their customers who
are shareholders of the Fund, they will transmit to the Fund requests for
redemption of shares owned by their customers. In such cases, the Transfer Agent
will wire proceeds of redemptions to DWR's or another Selected Broker-Dealer's
bank account for credit to the shareholders' accounts the following business
day. DWR and other participating Selected Broker-Dealers have also informed the
Distributor and the Fund that they do not charge for this service.
Redemption instructions must include the shareholder's name and account
number and be wired or called to the Transfer Agent:
-- 800-526-3143 (Toll-Free)
-- Telex No. 125076
3. BY MAIL
A shareholder may redeem shares by sending a letter to Dean Witter Trust
Company, P.O. Box 983, Jersey City, NJ 07303, requesting redemption and
surrendering share certificates if any have been issued.
Redemption proceeds will be mailed to the shareholder at his or her
registered address or mailed or wired to his or her predesignated bank account,
as he or she may request. Proceeds of redemption may also be sent to some other
person, as requested by the shareholder.
GENERAL REDEMPTION REQUIREMENTS
Written requests for redemption must be signed by the registered
shareholder[s]. If the proceeds are to be paid to anyone other than the
registered shareholder[s] or sent to any address other than the shareholder's
registered address or predesignated bank account, signatures must be guaranteed
by an eligible guarantor acceptable to the Transfer Agent (shareholders should
contact the Transfer Agent for a determination as to whether a particular
institution is an eligible guarantor), except in the case of redemption by
check. Additional documentation may be required where shares are held by a
corporation, partnership, trustee or executor. With regard to shares of the Fund
acquired pursuant to the Exchange Privilege, any applicable contingent deferred
sales charge will be imposed upon the redemption of such shares (see "Purchase
of Fund Shares--Exchange Privilege").
If shares to be redeemed are represented by a share certificate, the request
for redemption must be accompanied by the share certificate and a share
assignment form signed by the registered shareholder[s] exactly as the account
is registered. Shareholders are advised, for their own protection, to send the
share certificate and assignment form in separate envelopes (if they are being
mailed and not hand delivered) to the Transfer Agent. Signatures must be
guaranteed by an eligible guarantor acceptable to the Transfer Agent (see
above). Additional documentation may be required where shares are held by a
corporation, partnership, trustee or executor.
All requests for redemption, all share certificates and all share
assignments should be sent to Dean Witter Trust Company, P.O. Box 983, Jersey
City, NJ 07303.
Generally, the Fund will attempt to make payment for all redemptions and
repurchases within one business day, but in no event later than seven days after
receipt of such redemption request in proper form. However, if the shares being
redeemed or repurchased were purchased by check (including a certified or bank
cashier's check), payment may be delayed for the minimum time needed to verify
that the check used for investment has been honored (not more than fifteen days
from the time of receipt of the check by the Transfer Agent). In addition, the
Fund may postpone redemptions or repurchases at certain times when normal
trading is not taking place on the New York Stock Exchange.
16
<PAGE>
<TABLE>
<S> <C><C><C><C>
5 5 0 --
for office
use only
</TABLE>
APPLICATION
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
Send to: Dean Witter Trust Company (the "Transfer Agent"), P.O. Box 1040, Jersey
City, NJ 07303
<TABLE>
<S> <C> <C><C><C><C><C><C><C><C><C><C><C><C>
INSTRUCTIONS For assistance in completing this application, telephone
Dean Witter Trust Company at (800) 526-3143 (Toll Free).
TO REGISTER
SHARES 1.
(please print)
First Last
Name Name
- -As joint tenants,
use line 1 & 2 2.
First Last
Name Name
(Joint tenants with
rights of survivorship
unless otherwise
specified)
Social
Security
Number
- -As custodian
for a minor, 3.
use lines 1 & 3
Minor's
Name
Under the Uniform Minor's
Gifts to Minors Act Social
Security
Number
State of Residence of
Minor
- -In the name of a
corporation, 4.
trust,
partnership
or other Name of Corporation,
Trust (including
trustee name(s)) or
Other Organization
institutional
investors, use
line 4
If Trust, Date of Tax
Trust Instrument: Identification
Number
ADDRESS
City State
Code
</TABLE>
<TABLE>
<S> <C> <C>
TO PURCHASE
SHARES:
Minimum Initial / / CHECK (enclosed) $ (Make Payable to Dean
Investment: Witter New York Municipal Money Market Trust)
$5,000 / / WIRE* On MF*
(Date) (Control number, this transaction)
</TABLE>
<TABLE>
<S> <C> <C>
Name of Bank Branch
Address
Telephone Number
* For an initial investment made by wiring funds,
obtain a control number by calling: (800) 526-3143
(Toll Free) or (201) 413-7067.
Your bank should wire to:
Bank of New York for credit to account of Dean
Witter Trust Company
</TABLE>
<TABLE>
<S> <C> <C>
Account Number: 8900188413
Re: Dean Witter New York Municipal Money Market
Trust
Account Of: (Investor's Account as Registered at
the Transfer Agent)
Control or Account Number:
(Assigned by Telephone)
OPTIONAL SERVICES
</TABLE>
<TABLE>
<S> <C> <C><C><C> <C>
NOTE: If you are a current shareholder of Dean Witter New York Municipal Market Trust, please indicate
your fund account number here.
[5] [5] [0] -
</TABLE>
<TABLE>
<S> <C>
DIVIDENDS All dividends will be reinvested daily in additional shares, unless the following option is
selected:
/ / Pay income dividends by check at the end of each month.
WRITE YOUR / / Send an initial supply of checks.
OWN FOR JOINT ACCOUNTS:
CHECK / / Check this box if all owners are required to sign checks.
SYSTEMATIC / / Systematic Withdrawal Plan / / Percentage of balance (annualized basis)
WITHDRAWAL ($25 minimum) % / / Monthly or / / Quarterly
PLAN $ / / Monthly or / / Quarterly / / 10th or / / 25th of Month/Quarter
Minimum / / 10th or / / 25th of
Account Month/Quarter
Value: / / Pay shareholder(s) at
$5,000 address of record.
/ / Pay to the following: (If this payment option is selected a signature guarantee is required)
</TABLE>
<TABLE>
<S> <C> <C>
Name
Address
City State Zip
Code
</TABLE>
<PAGE>
<TABLE>
<S> <C>
/ / Dean Witter Trust Company is hereby
authorized to honor telephonic or other instructions, without signature
guarantee, from any person for the redemption of any or
all shares of Dean Witter New York Municipal Money Market Trust held in
my (our)
PAYMENT TO account provided that proceeds are transmitted only to the following bank account.
PREDESIGNATED
BANK ACCOUNT (Absent its own negligence, neither Dean Witter New York Municipal Money Market Trust
nor Dean Witter Trust Company (the "Transfer Agent") shall be liable for any
redemption caused by unauthorized instruction(s)):
Bank Account must be in
same name as shares are
registered
NAME & BANK ACCOUNT NUMBER
Minimum Amount:
$1,000 NAME OF BANK
ADDRESS OF BANK
()
TELEPHONE NUMBER OF BANK
SIGNATURE AUTHORIZATION
FOR ALL ACCOUNTS NOTE: RETAIN A COPY OF THIS DOCUMENT FOR YOUR
RECORDS. ANY MODIFICATION OF THE INFORMATION
BELOW WILL REQUIRE AN AMENDMENT TO THIS FORM.
THIS DOCUMENT IS IN FULL FORCE AND EFFECT
UNTIL ANOTHER DULY EXECUTED FORM IS RECEIVED BY
THE TRANSFER AGENT.
The "Transfer Agent" is hereby authorized to
act as agent for the registered owner of
shares of Dean Witter New York Municipal Money
Market Trust (the "Fund") in effecting
redemptions of shares and is authorized to
recognize the signature(s) below in payment of
funds resulting from such redemptions on behalf
of the registered owners of such shares.
The Transfer Agent shall be liable only for its
own negligence and not for default or
negligence of its correspondents, or for losses
in transit. The Fund shall not be liable
for any default or negligence of the Transfer
Agent.
I (we) certify to my (our) legal capacity, or the
capacity of the investor named above, to
invest in and redeem shares of, and I (we)
acknowledge receipt of a current prospectus of,
Dean Witter New York Municipal Money Market
Trust and (we) further certify my (our)
authority to sign and act for and on behalf of the
investor.
Under penalties of perjury, I certify (1) that the
number shown on this form is my correct
taxpayer identification number and (2) that I am
not subject to backup withholding either
because I have not been notified that I am
subject to backup withholding as a result of a
failure to report all interest or dividends, or
the Internal Revenue Service has notified
me that I am no longer subject to backup
withholding. (Note: You must cross out item (2)
above if you have been notified by IRS that
you are currently subject to backup
withholding because of underreporting interest or
dividends on your tax return.)
For Individual, Joint and Custodial Accounts
for Minors, Check Applicable Box:
/ / I am a United States Citizen.
/ / I am not a United States
Citizen.
SIGNATURE(S) (IF JOINT TENANTS, ALL MUST SIGN)
<CAPTION>
PAYMENT TO
PREDESIGNATED
BANK ACCOUNT
Bank Account must be in
same name as shares ar
registered
BANK'S ROUTING TRANSMIT
CODE
(ASK YOUR BANK)
Minimum Amount:
$1,000
FOR ALL ACCOUNTS
</TABLE>
<TABLE>
<S> <C> <C>
Name(s) must be
signed exactly the
same as shown on
lines 1 to 4 on the
reverse side of this
application
SIGNED THIS DAY OF , 19.
FOR CORPORATIONS, TRUSTS, PARTNERSHIPS AND OTHER ORGANIZATIONS
The following named persons are currently officers/trustees/general
partners/other authorized signatories of the Registered Owner, and any * of
them ("Authorized Person(s)") is/are currently authorized under the applicable governing
document to act with full power to sell, assign or
transfer securities of the the Fund for the Registered Owner and to
execute and deliver any instrument necessary to effectuate the authority hereby conferred:
NAME/TITLE SIGNATURE
In addition,
complete
Section A or B
below.
SIGNED THIS DAY OF , 19.
The Transfer Agent may, without inquiry, act only upon
the instruction of ANY PERSON(S) purporting to be (an) Authorized Person(s)
as named in the Certification Form last received by the Transfer Agent. The
Transfer Agent and the Fund shall not be liable for any claims, expenses
(including legal fees) or losses resulting from the Transfer Agent having
acted upon any instruction reasonably believed genuine.
*INSERT A NUMBER. UNLESS OTHERWISE INDICATED, THE TRANSFER AGENT MAY HONOR
INSTRUCTIONS OF ANY ONE OF THE PERSONS NAMED ABOVE.
</TABLE>
<TABLE>
<S> <C>
SECTION (A) NOTE: EITHER A SIGNATURE GUARANTEE OR CORPORATE SEAL
IS REQUIRED.
CORPORATIONS AND IN-
CORPORATED
ASSOCIATIONS ONLY. I, , Secretary of the Registered Owner, do hereby
certify that at a meeting on at which a quorum
SIGN ABOVE AND COM- was present throughout, the Board of Directors of the
corporation/the officers of the association
PLETE THIS duly adopted a resolution, which is in full force and
effect and in accordance with the Registered
SECTION Owner's charter and by-laws, which resolution did the
following: (1) empowered the above-named
Authorized Person(s) to effect securities
transactions for the Registered Owner on the terms
described above; (2) authorized the Secretary to
certify, from time to time, the names and titles
of the officers of the Registered Owner and to notify
the Transfer Agent when changes in office
occur; and (3) authorized the Secretary to certify
that such a resolution has been duly adopted
and will remain in full force and effect until the
Transfer Agent receives a duly executed
amendment to the Certification Form.
SIGNATURE
GUARANTEE** Witness my hand on behalf of the corporation/association
this day of , 19.
(or Corporate Seal)
Secretary**
The undersigned officer (other than the Secretary)
hereby certifies that the foregoing instrument
has been signed by the Secretary of the
corporation/association.
SIGNATURE
GUARANTEE**
(or Corporate Seal) Certifying Officer of the Corporation or
Incorporated Association**
SECTION (B) ALL NOTE: A SIGNATURE GUARANTEE IS REQUIRED.
OTHER
INSTITUTIONAL
INVESTORS Certifying
SIGNATURE Trustee(s)/General Partner(s)/Other(s)**
GUARANTEE**
SIGN ABOVE AND COM- Certifying
PLETE THIS SECTION Trustee(s)/General Partner(s)/Other(s)**
**SIGNATURE(S) MUST BE GUARANTEED BY AN ELIBIGLE GUARANTOR
</TABLE>
<TABLE>
<S> <C> <C>
DEALER Above signature(s) guaranteed. Prospectus has been delivered
by undersigned to above-named applicant(s).
(if any)
Completion by dealer only
Firm Name
Address
City, State, Zip Code
<CAPTION>
DEALER
(if any)
Completion by dealer only
Office Number-Account Number at Dealer-A/E Number
Account Executive's Last Name
Branch Office
</TABLE>
- -Registered Trademark- 1995 Dean Witter Distributors Inc.
<PAGE>
The Fund reserves the right, on 60 days' notice, to redeem at their net
asset value the shares of any shareholder (other than shares held in an
Individual Retirement Account or custodial account under Section 403(b)(7) of
the Internal Revenue Code) whose shares due to redemptions by the shareholder
have a value of less than $1,000, or such lesser amount as may be fixed by the
Board of Trustees.
AUTOMATIC REDEMPTION PROCEDURE
The Distributor has instituted an automatic redemption procedure which it
may utilize to satisfy amounts due it by a shareholder maintaining a brokerage
account with DWR or another Selected Broker-Dealer, as a result of purchases of
securities or other transactions in the shareholder's brokerage account. Under
this procedure, if the shareholder elects to participate by so notifying DWR or
another Selected Broker-Dealer, the shareholder's DWR or other Selected
Broker-Dealer brokerage account will be scanned each business day prior to the
close of business (4:00 P.M., New York time). After application of any cash
balances in the account, a sufficient number of Fund shares may be redeemed at
the close of business to satisfy any amounts for which the shareholder is
obligated to make payment to DWR or other Selected Broker-Dealer. Redemptions
will be effected on the business day preceding the date the shareholder is
obligated to make such payment, and DWR or other Selected Broker-Dealer will
receive the redemption proceeds on the day following the redemption date.
Shareholders will receive all dividends declared and reinvested through the date
of redemption.
DIVIDENDS, DISTRIBUTIONS AND TAXES
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS. The Fund declares dividends, payable on each
day the New York Stock Exchange is open for business, of all of its daily net
investment income to shareholders of record as of the close of business the
preceding business day. Dividends from net short-term capital gains, if any,
will be paid periodically. The amount of dividend may fluctuate from day to day
and may be omitted on some days if net realized losses on portfolio securities
exceed the Fund's net investment income. Dividends are declared and
automatically reinvested daily in additional full and fractional shares of the
Fund (rounded to the last 1/100 of a share) at the net asset value per share at
the close of business on that day. Any dividends declared in the last quarter of
any calendar year which are paid in the following calendar year prior to
February 1 will be deemed received by the shareholder in the prior year.
Shareholders may instruct the Transfer Agent (in writing) to have their
dividends paid out monthly in cash. For such shareholders, the shares reinvested
and credited to their account during the month will be redeemed as of the close
of business on the monthly payment date (which will be no later than the last
business day of the month) and the proceeds will be paid to them by check.
Processing of dividend checks begins immediately following the monthly payment
date. Shareholders who have requested to receive dividends in cash will normally
receive their monthly dividend check during the first ten days of the following
month.
Share certificates for dividends or distributions will not be issued unless
a shareholder requests in writing that a certificate be issued for a specific
number of shares.
TAXES. Because the Fund intends to distribute substantially all of its net
investment income and net capital gains, if any, to shareholders, and intends to
otherwise comply with all the provisions of Subchapter M of the Internal Revenue
Code of 1986, as amended (the "Code"), to qualify as a regulated investment
company, it is not expected that the Fund will be required to pay any federal
income tax.
The Fund intends to qualify to pay "exempt-interest dividends" to its
shareholders by maintaining, as of the close of each quarter of its taxable
17
<PAGE>
year, at least 50% of the value of its total assets in tax-exempt securities. If
the Fund satisfies such requirement, dividends from net investment income to
shareholders, whether taken in cash or reinvested in additional Fund shares,
will be excludable from gross income for federal income tax purposes to the
extent net interest income is represented by interest on tax-exempt securities.
Exempt-interest dividends are included, however, in determining what portion, if
any, of a person's Social Security benefits are subject to federal income tax.
The Code subjects interest received on certain otherwise tax-exempt
securities to an alternative minimum tax. This alternative minimum tax applies
to interest received on "private activity bonds" (in general, bonds that benefit
non-government entities) issued after August 7, 1986 which, although tax-exempt,
are used for purposes other than those generally performed by governmental units
(e.g., bonds used for commercial or housing purposes). Income received on such
bonds is classified as a "tax preference item" under the alternative minimum
tax, for both individual and corporate investors. The Fund may invest without
limit in such "private activity bonds," with the result that a substantial
portion of the exempt-interest dividends paid by the Fund may be an item of tax
preference to shareholders subject to the alternative minimum tax. In addition,
certain corporations which are subject to the alternative minimum tax may have
to include a portion of exempt-interest dividends in calculating their
alternative minimum taxable income in situations where the adjusted current
earnings of the corporation exceeds its alternative minimum taxable income.
After the end of its calendar year, the shareholders will be sent a
statement indicating the percentage of the dividend distributions for such
taxable year which constitutes exempt-interest dividends and the percentage, if
any, that is taxable, and the percentage, if any, of the exempt-interest
dividends which constitutes an item of tax preference. (Unlike federal law, no
portion of the exempt-interest dividends will constitute an item of tax
preference for New York personal income tax purposes.) This percentage should be
applied uniformly to any distributions made during the taxable year to determine
the proportion of dividends that is tax-exempt. The percentage may differ from
the percentage of tax-exempt dividend distributions for any particular month.
To the extent that dividends are derived from interest on New York
tax-exempt securities, such dividends will also be exempt from New York State
and New York City personal income taxes. Shareholders will normally be subject
to federal and New York State and New York City personal income tax on dividends
paid from interest income derived from taxable securities and on distributions
of net capital gains. For federal and New York State or New York City income tax
purposes, distributions of net long-term capital gains, if any, are taxable to
shareholders as long-term capital gains, regardless of how long the shareholder
has held the Fund shares and regardless of whether the distribution is received
in additional shares or in cash. To avoid being subject to a 31% backup
withholding tax on taxable dividends and capital gains distributions and the
proceeds of redemptions and repurchases, shareholders' taxpayer identification
numbers must be furnished and certified as to accuracy.
Interest on indebtedness incurred by shareholders or related parties to
purchase or carry shares of an investment company paying exempt-interest
dividends, such as the Fund, will not be deductible by the investor for federal
or New York State or New York City personal income tax purposes.
The foregoing relates to federal income taxation and to New York State and
New York City personal income taxation as in effect as of the date of this
Prospectus.
Shareholders should consult their tax advisers as to the applicability of
the above to their own tax situation.
18
<PAGE>
CURRENT AND EFFECTIVE YIELD
From time to time the Fund advertises its "yield" and "effective yield."
Both yield figures are based on historical earnings and are not intended to
indicate future performance. The "yield" of the Fund refers to the income
generated by an investment in the Fund over a given seven-day period (which
period will be stated in the advertisement). This income is then "annualized."
That is, the amount of income generated by the investment during that seven-day
period is assumed to be generated each seven-day period within a 365-day period
and is shown as a percentage of the investment. The "effective yield" for a
seven-day period is calculated similarly, but, when annualized, the income
earned by an investment in the Fund is assumed to be reinvested each week within
a 365-day period. The "effective yield" will be slightly higher than the "yield"
because of the compounding effect of this assumed reinvestment. The Fund may
also quote tax-equivalent yield which is calculated by determining the pre-tax
yield which, after being taxed at a stated rate, would be equivalent to the
yield determined as described above. The Fund may also advertise the growth of
hypothetical investments of $10,000, $50,000 and $100,000 in shares of the Fund.
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
VOTING RIGHTS. All shares of beneficial interest of the Fund are of $0.01
par value and are equal as to earnings, assets and voting privileges.
The Fund is not required to hold Annual Meetings of Shareholders and in
ordinary circumstances the Fund does not intend to hold such meetings. The
Trustees may call Special Meetings of Shareholders for action by shareholder
vote as may be required by the Act or the Declaration of Trust. Under certain
circumstances, the Trustees may be removed by action of the Trustees or by the
Shareholders.
Under Massachusetts law, shareholders of a business trust may, under certain
circumstances, be held personally liable as partners for obligations of the
Fund. However, the Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of the Fund, requires that notice
of such disclaimer be given in each instrument entered into or executed by the
Fund and provides for indemnification and reimbursement of expenses out of the
Fund's property for any shareholder held personally liable for the obligations
of the Fund. Thus, the risk of a shareholder incurring financial loss on account
of shareholder liability is limited to circumstances in which the Fund itself
would be unable to meet its obligations. Given the above limitations on
shareholder personal liability and the nature of the Fund's assets and
operations, the possibility of the Fund being unable to meet its obligations is
remote and, in the opinion of Massachusetts counsel to the Fund, the risk to
Fund shareholders of personal liability is remote.
CODE OF ETHICS. Directors, officers and employees of InterCapital, Dean
Witter Services Company Inc. and the Distributor are subject to a strict Code of
Ethics adopted by those companies. The Code of Ethics is intended to ensure that
the interests of shareholders and other clients are placed ahead of any personal
interest, that no undue personal benefit is obtained from a person's employment
activities and that actual and potential conflicts of interest are avoided. To
achieve these goals and comply with regulatory requirements, the Code of Ethics
requires, among other things, that personal securities transactions by employees
of the companies be subject to an advance clearance process to monitor that no
Dean Witter Fund is engaged at the same time in a purchase or sale of the same
security. The Code of Ethics bans the purchase of securities in an initial
public offering and prohibits engaging in futures and option transactions and
profiting on short-term trading (that is, a purchase within sixty days of a sale
or a sale within sixty days of a purchase) of a security. In addition,
investment
person-
19
<PAGE>
nel may not purchase or sell a security for their personal account within thirty
days before or after any transaction in any Dean Witter Fund managed by them.
Any violations of the Code of Ethics are subject to sanctions, including
reprimand, demotion or suspension or termination of employment. The Code of
Ethics comports with regulatory requirements and the recommendations in the
recent report by the Investment Company Institute Advisory Group on Personal
Investing.
SHAREHOLDER INQUIRIES. All inquiries regarding the Fund should be directed
to the Fund or the Transfer Agent at one of the telephone numbers or at the
addresses, as are set forth on the front cover of this Prospectus.
20
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(amortized cost $39,986,178)............. $ 39,986,178
Cash....................................... 163,347
Interest receivable........................ 236,261
Deferred organizational expenses........... 2,295
Prepaid expenses........................... 10,038
------------
TOTAL ASSETS....................... 40,398,119
------------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased............................ 650,945
Investment management fee................ 16,950
Plan of distribution fee................. 3,390
Accrued expenses........................... 97,955
------------
TOTAL LIABILITIES.................. 769,240
------------
NET ASSETS:
Paid-in-capital............................ 39,629,282
Accumulated undistributed net investment
income................................... 18
Accumulated net realized loss.............. (421)
------------
NET ASSETS......................... $ 39,628,879
------------
------------
NET ASSET VALUE PER SHARE, 39,629,282
shares outstanding (unlimited shares
authorized of $.01 par value)............
$1.00
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME........................... $ 1,206,782
-----------
EXPENSES
Investment management fee............... 216,726
Professional fees....................... 48,599
Transfer agent fees and expenses........ 45,972
Plan of distribution fee................ 42,774
Shareholder reports and notices......... 38,125
Trustees' fees and expenses............. 27,941
Organizational expenses................. 10,691
Registration fees....................... 7,026
Custodian fees.......................... 3,516
Other................................... 4,550
-----------
TOTAL EXPENSES...................... 445,920
-----------
NET INVESTMENT INCOME AND NET
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $ 760,862
-----------
-----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................ $ 760,862 $ 605,211
Net realized loss.................................................... -- (1,000)
------------------ ------------------
Net increase..................................................... 760,862 604,211
------------------ ------------------
Dividends to shareholders from net investment income................... (760,887) (605,204)
Net decrease from transactions in shares of beneficial interest........ (1,483,202) (4,013,139)
------------------ ------------------
Total decrease................................................... (1,483,227) (4,014,132)
NET ASSETS:
Beginning of period.................................................... 41,112,106 45,126,238
------------------ ------------------
END OF PERIOD (including undistributed net investment income of $18 and
$43, respectively).................................................... $ 39,628,879 $ 41,112,106
------------------ ------------------
------------------ ------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter New York Municipal Money
Market Trust (the "Fund") is registered under the Investment Company Act of
1940, as amended (the "Act"), as a non-diversified, open-end management
investment company. The Fund was organized as a Massachusetts business trust on
December 28, 1989 and commenced operations on March 20, 1990.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS--Portfolio securities are valued at amortized
cost, which approximates market value.
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. The Fund amortizes premiums and discounts on securities purchased
over the life of the respective securities. Interest income is accrued
daily.
C. 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 and nontaxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends
and distributions to shareholders as of the close of each business day.
E. ORGANIZATIONAL EXPENSES--Dean Witter InterCapital Inc. (the "Investment
Manager") paid the organizational expenses of approximately $58,000 which
have been reimbursed for the full amount thereof. Such expenses have been
deferred and are being amortized on a straight-line basis 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 following annual rates to the net assets of
the Fund determined as of the close of each business day: 0.50% to the portion
of the daily net assets not exceeding $500 million; 0.425% to the portion of the
daily net assets exceeding $500 million but not exceeding $750 million; 0.375%
to the portion of the daily net assets exceeding $750 million but not exceeding
$1 billion; 0.35% to the portion of the daily net assets exceeding $1 billion
but not exceeding $1.5 billion; 0.325% to the portion of the daily net assets
exceeding $1.5 billion but not exceeding $2 billion; 0.30% to the portion of the
daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.275% to
the portion of the daily net assets exceeding $2.5 billion but not exceeding $3
billion; and 0.25% to the portion of the daily net assets exceeding $3 billion.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION--Dean Witter Distributors Inc. (the "Distributor"), an
affiliate of the Investment Manager, is the distributor of the Fund's shares
and, in accordance with a Plan of Distribution (the "Plan") pursuant to Rule
12b-1 under the Act, finances certain expenses in connection therewith.
Under the Plan, the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Fund, except for expenses that
the Trustees determine to reimburse, as described below. The following
activities and services may be provided by the Distributor and other
broker-dealers under the
22
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Plan: (1) compensation to and expenses of the Distributor and other
broker-dealers; (2) sales incentives and bonuses to sales representatives and to
marketing personnel in connection with promoting sales of the Fund's shares; (3)
expenses incurred in connection with promoting sales of the Fund's shares; (4)
preparing and distributing sales literature; and (5) providing advertising and
promotional activities, including direct mail solicitation and television,
radio, newspaper, magazine and other media advertisements.
The Fund is authorized to reimburse the Distributor for specific expenses
the Distributor incurs or plans to incur in promoting the distribution of the
Fund's shares. The amount of each monthly reimbursement payment may in no event
exceed an amount equal to a payment at the annual rate of 0.15% of the Fund's
average daily net assets during the month. Expenses incurred by the Distributor
pursuant to the Plan in any fiscal year will not be reimbursed by the Fund
through payments accrued in any subsequent fiscal year. For the year ended
December 31, 1994, the distribution fee was accrued at the annual rate of 0.10%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and proceeds from sales/maturities of portfolio securities for the
year ended December 31, 1994 aggregated $88,491,375 and $89,570,000,
respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At December 31, 1994, the Fund had
transfer agent fees and expenses payable of approximately $4,100.
On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Trustees of the Fund who will have
served as independent Trustees for at least five years at the time of
retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension costs for
the year ended December 31, 1994, included in Trustees' fees and expenses in the
Statement of Operations amounted to $2,766. At December 31, 1994, the Fund had
an accrued pension liability of $37,746 which is included in accrued expenses in
the Statement of Assets and Liabilities.
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial
interest, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
For the year ended For the year ended
December 31, 1994 December 31, 1993
------------------ ------------------
<S> <C> <C>
Sold........................................................................... 101,653,911 122,306,064
Reinvestment of dividends...................................................... 760,887 605,204
------------------ ------------------
102,414,798 122,911,268
Repurchased.................................................................... (103,898,000) (126,924,407)
------------------ ------------------
Net decrease in shares outstanding............................................. (1,483,202) (4,013,139)
------------------ ------------------
------------------ ------------------
</TABLE>
6. SELECTED PER SHARE DATA AND RATIOS--See the "Financial Highlights" table on
page 4 of this Prospectus.
23
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN CURRENT
THOUSANDS) YIELD VALUE
- --------------- ---------- -------------
<C> <S> <C> <C>
NEW YORK TAX-EXEMPT SHORT-TERM VARIABLE RATE MUNICIPAL OBLIGATIONS* (77.1%)
NEW YORK
$ 1,000 Babylon, Ser 1994 B, 4.70% due 1/4/95............................................... 4.70% $ 1,000,000
2,000 Franklin County Industrial Development Agency, KES Chateaugay Ser 1991 A (AMT),
5.40% due 1/4/95.................................................................. 5.40 2,000,000
New York City Cultural Resources Trust,
1,500 Carnegie Hall Ser 1990, 5.00% due 1/4/95............................................ 5.00 1,500,000
1,600 Jewish Museum Ser 1992, 5.50% due 1/4/95............................................ 5.50 1,600,000
1,000 New York City Housing Development Corporation, Multi-family James Tower Dev 1994 Ser
A, 5.40% due 1/4/95............................................................... 5.40 1,000,000
New York City Industrial Development Agency,
750 Composite Offrg I (AMT), 5.35% due 1/4/95........................................... 5.35 750,000
950 Composite Offrg XXV 1990 Ser E (AMT), 5.35% due 1/4/95.............................. 5.35 950,000
1,900 The Berkeley Carroll School Ser 1993, 5.00% due 1/4/95.............................. 5.00 1,900,000
1,000 The Columbia Grammar & Preparatory School Ser 1994, 5.00% due 1/4/95................ 5.00 1,000,000
2,000 New York Local Government Assistance Corporation, Ser 1994 B, 5.20% due 1/4/95...... 5.20 2,000,000
New York State Dormitory Authority,
1,300 Metropolitan Museum of Art Ser A, 5.20% due 1/4/95.................................. 5.20 1,300,000
1,000 Oxford University Press Inc, 6.75% due 1/3/95....................................... 6.75 1,000,000
New York State Energy Research & Development Authority,
2,100 Central Hudson Gas & Electric Corp Ser 1987 A (AMT), 4.80% due 1/5/95............... 4.80 2,100,000
1,000 Long Island Lighting Co Ser 1985 A, 3.00% due 3/1/95................................ 3.00 1,000,000
1,000 Long Island Lighting Co Ser 1993 (AMT), 4.90% due 1/4/95............................ 4.90 1,000,000
1,000 New York State Medical Care Facilities Finance Agency, The Children's Hospital of
Buffalo 1991 Ser A, 5.35% due 1/4/95.............................................. 5.35 1,000,000
3,940 New York State Power Authority, Tender Notes, 3.80% due 3/1/95...................... 3.80 3,940,000
1,000 Port Authority of New York & New Jersey, KIAK Partners Special Proj Ser 3 (AMT),
5.35% due 1/4/95.................................................................. 5.35 1,000,000
2,500 Triborough Bridge & Tunnel Authority, Ser 1994 (FGIC Insured), 4.85% due 1/4/95..... 4.85 2,500,000
-------------
28,540,000
-------------
PUERTO RICO
2,000 Puerto Rico Highway & Transportation Authority, Ser X, 5.00% due 1/4/95............. 5.00 2,000,000
-------------
TOTAL NEW YORK TAX-EXEMPT SHORT-TERM VARIABLE RATE MUNICIPAL OBLIGATIONS (AMORTIZED COST
$30,540,000).................................................................................. 30,540,000
-------------
</TABLE>
<TABLE>
<CAPTION>
YIELD TO
MATURITY
ON DATE OF
PURCHASE VALUE
----------- -------------
<C> <S> <C> <C>
NEW YORK TAX-EXEMPT COMMERCIAL PAPER (12.4%)
NEW YORK
800 New York City Municipal Water Finance Authority, Ser 1994, 3.75% due 2/8/95......... 3.75 800,000
1,200 New York State, Ser P BANs, 3.75% due 2/14/95....................................... 3.75 1,200,000
$ 1,000 New York State Energy Research & Development Authority, New York State Electric &
Gas Corp Ser 1994 B, 4.00% due 1/31/95............................................ 4.00% $ 1,000,000
</TABLE>
24
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YIELD TO
PRINCIPAL MATURITY
AMOUNT (IN ON DATE OF
THOUSANDS) PURCHASE VALUE
- ----------- ----------- -------------
<C> <S> <C> <C>
1,135 Port Authority of New York & New Jersey, Ser 2 (AMT), 3.75% due 2/16/95............. 3.75 1,135,000
-------------
4,135,000
-------------
PUERTO RICO
800 Puerto Rico Maritime Shipping Authority, Ser A, 4.80% due 1/11/95................... 4.80 800,000
-------------
TOTAL NEW YORK TAX-EXEMPT COMMERCIAL PAPER
(AMORTIZED COST $4,935,000).................................................................... 4,935,000
-------------
NEW YORK TAX-EXEMPT SHORT-TERM MUNICIPAL NOTES (11.4%)
1,000 Erie County, 1994 RANs, dtd 8/16/94 4.75% due 8/15/95............................... 4.00 1,004,484
1,000 Monroe County, Ser 1994 RANs, dtd 7/28/94 4.25% due 2/28/95......................... 3.55 1,001,098
1,500 Smithtown, Central School District 1994-95 TANs, dtd 6/23/94 4.00% due 6/23/95...... 3.60 1,502,760
1,000 Suffolk County, 1994 TANs, dtd 9/22/94 4.50% due 9/14/95............................ 4.10 1,002,836
-------------
TOTAL NEW YORK TAX-EXEMPT SHORT-TERM MUNICIPAL NOTES (AMORTIZED COST $4,511,178).................
4,511,178
-------------
TOTAL INVESTMENTS (AMORTIZED COST $39,986,178) (A)............................ 100.9% 39,986,178
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS................................ (0.9) (357,299)
---------- ------------
NET ASSETS.................................................................... 100.0% $ 39,628,879
---------- ------------
---------- ------------
<FN>
- ----------------
AMT ALTERNATIVE MINIMUM TAX.
BANS BOND ANTICIPATION NOTES.
RANS REVENUE ANTICIPATION NOTES.
TANS TAX ANTICIPATION NOTES.
* THE DUE DATE REFLECTS THE NEXT RATE CHANGE.
(A) COST IS THE SAME FOR FEDERAL INCOME TAX PURPOSES.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter New York Municipal Money Market
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 (appearing in the "Financial
Highlights" table on page 4 of this Prospectus) present fairly, in all material
respects, the financial position of Dean Witter New York Municipal Money Market
Trust (the "Fund") at December 31, 1994, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the four years in the
period then ended and for the period March 20, 1990 (commencement of operations)
through December 31, 1990, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at December 31, 1994 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
February 13, 1995
1994 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended December 31, 1994, the Fund paid to the shareholders
$0.017694 per share from net investment income. All of the Fund's dividends
from net investment income were exempt interest dividends, excludable from
gross income for Federal and New York income tax purposes.
26
<PAGE>
THE DEAN WITTER FAMILY OF FUNDS
MONEY MARKET FUNDS DEAN WITTER RETIREMENT SERIES
Dean Witter Liquid Asset Fund Inc. Liquid Asset Series
Dean Witter Tax-Free Daily Income Trust U.S. Government Money Market Series
Dean Witter New York Municipal Money U.S. Government Securities Series
Market Trust Intermediate Income Securities Series
Dean Witter California Tax-Free Daily American Value Series
Income Trust Capital Growth Series
Dean Witter U.S. Government Money Dividend Growth Series
Market Trust Strategist Series
EQUITY FUNDS Utilities Series
Dean Witter American Value Fund Value-Added Market Series
Dean Witter Natural Resource Global Equity Series
Development Securities Inc. ASSET ALLOCATION FUNDS
Dean Witter Dividend Growth Securities Dean Witter Managed Assets Trust
Inc. Dean Witter Strategist Fund
Dean Witter Developing Growth Dean Witter Global Asset Allocation
Securities Trust Fund
Dean Witter World Wide Investment Trust ACTIVE ASSETS ACCOUNT PROGRAM
Dean Witter Value-Added Market Series Active Assets Money Trust
Dean Witter Utilities Fund Active Assets Tax-Free Trust
Dean Witter Capital Growth Securities Active Assets California Tax-Free Trust
Dean Witter European Growth Fund Inc. Active Assets Government Securities
Dean Witter Precious Metals and Trust
Minerals Trust
Dean Witter Pacific Growth Fund Inc.
Dean Witter Health Sciences Trust
Dean Witter Global Dividend Growth
Securities
Dean Witter Global Utilities Fund
Dean Witter International SmallCap Fund
Dean Witter Mid-Cap Growth Fund
FIXED-INCOME FUNDS
Dean Witter High Yield Securities Inc.
Dean Witter Tax-Exempt Securities Trust
Dean Witter U.S. Government Securities
Trust
Dean Witter California Tax-Free Income
Fund
Dean Witter New York Tax-Free Income
Fund
Dean Witter Convertible Securities
Trust
Dean Witter Federal Securities Trust
Dean Witter World Wide Income Trust
Dean Witter Intermediate Income
Securities
Dean Witter Global Short-Term Income
Fund Inc.
Dean Witter Multi-State Municipal
Series Trust
Dean Witter Premier Income Trust
Dean Witter Short-Term U.S. Treasury
Trust
Dean Witter Diversified Income Trust
Dean Witter Limited Term Municipal
Trust
Dean Witter Short-Term Bond Fund
Dean Witter National Municipal Trust
Dean Witter High Income Securities
<PAGE>
Dean Witter New York
Municipal Money Market Trust
Dean Witter
Two World Trade Center
New York, New York 10048
BOARD OF TRUSTEES New York
Jack F. Bennett Municipal
Michael Bozic Money Market
Charles A. Fiumefreddo Trust
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
Katherine H. Stromberg
Vice President
Thomas F. Caloia
Treasurer
CUSTODIAN
The Bank of New York
90 Washington Street
New York, New York 10286
TRANSFER AGENT AND DIVIDEND
DISBURSING 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.
PROSPECTUS -- FEBRUARY 24, 1995
