ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
===============================================================================
Active Assets California Tax-Free Trust's annualized yield for the six months
ended December 31, 1993 was 1.74 percent. At year end, the Trust had net assets
in excess of $260 million, with an average maturity of 51 days.
Tax-free money market interest rates moved to record low levels early in
1993 and remained low throughout the year. With little change in Federal
Reserve policy, the movement of municipal money market yields was influenced
primarily by changes in the balance of supply and demand. Seasonal factors that
have been in place in previous years were also evident during 1993, although
swings in interest rates were not as pronounced. Crossover investors from the
taxable markets have become familiar with the seasonal pattern of the tax-free
sector, moving in quickly when municipal money market yields are out of line
with taxable interest rates.
The behavior of yields for variable-rate obligations with weekly rate
changes illustrates the market's response to large changes in investment cash
flows. For most of the year, weekly variable-rate yields moved within a range
of 2 percent to 2.5 percent. However, in early January and again in early July,
rates dropped quickly and sharply to levels as low as 1.6 percent. This
movement came in response to spikes in demand stemming from coupon payments,
maturities and called bonds. Periods of cash outflows caused rates to move just
as quickly in the opposite direction, increasing to as high as 3 percent, for
example, at the end of September.
The market for longer-term, tax-free, money-market securities also displayed
some of the volatility associated with changes in technical market factors, but
the movement of rates was not as dramatic. The Bond Buyer One Year Note Index
reached a high of 2.99 percent in late July, when the supply of one-year notes
was at its seasonal peak. Following the pattern seen in 1992, the Index
registered a record low of 2.25 percent in December, when demand picked up in
anticipation of large cash inflows after the first of the year.
With tax-free money market yields at or near record lows during most of
1993, the Trust's average maturity was extended only when longer-term
securities provided a clear yield advantage. For much of the first half of the
year, the Trust's average maturity stayed within a range of 40 to 60 days. In
June and July, however, the Trust took advantage of the more attractive yields
available from one-year notes by extending its average maturity out to the 65-
to 75-day range. At the end of December, the Trust's average maturity was
shortened again to 51 days.
Adherence to high quality standards is the prevailing focus in managing the
Trust's portfolio. At year end, the Trust's portfolio was broadly diversified.
Five municipal market sectors--tax supported, industrial development/pollution
control, health care, electric and transportation--represented approximately 78
percent of the Trust's investments. With California's economy lagging the rest
of the nation, particular attention has been given to monitoring credit
quality. As the economy emerges from its slowdown, some of the issuers that
have been avoided because of budgetary difficulties may again be considered for
investment.
The changing fortunes of banks providing letters of credit are watched
continually. Ongoing efforts have been made in recent periods to reduce overall
exposure to banks and to confine investments to only the most highly regarded
institutions. Particular attention has been given to limiting investments
backed by Japanese bank letters of credit.
At year end, the Trust was 58 percent invested in variable rate obligations
with demand features. California-exempt commercial paper and municipal notes,
the two other types of securities utilized in the portfolio, comprised 31
percent and 11 percent of investments, respectively. The Trust remained fully
invested in securities exempt from California state income tax. To provide
greater investment flexibility, the Trust purchased issues subject to the
federal alternative minimum tax (AMT). These issues represented 13 percent of
the portfolio at year end.
We appreciate your support of Active Assets California Tax-Free Trust and
look forward to continuing to serve your investment needs and objectives.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
<TABLE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
PORTFOLIO OF INVESTMENTS December 31, 1993 (unaudited)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Current
thousands) Yield Value
- --------- ----- -----
<C> <S> <C> <C>
CALIFORNIA EXEMPT SHORT-TERM VARIABLE RATE MUNICIPAL
OBLIGATIONS* (57.3%)
CALIFORNIA
$ 4,640 Association of Bay Area Governments, Pooled Ser 1987,
2.80% due 1/6/94................................................................... 2.80% $ 4,640,000
4,000 Big Bear Lake, Southwest Gas Corp 1993 Series A (AMT),
3.15% due 1/5/94................................................................... 3.15 4,000,000
12,000 California Alternative Energy Finance Authority, GE Capital
Corp Arroyo Energy Ser 1993 B (AMT), 3.50% due 1/5/94.............................. 3.50 12,000,000
California Health Facilities Financing Authority,
2,900 Catholic Healthcare West 1988 Ser A (MBIA Insured),
2.75% due 1/5/94................................................................... 2.75 2,900,000
3,800 Childrens Hospital of Orange County Ser 1991 (MBIA Insured),
2.95% due 1/6/94.................................................................. 2.95 3,800,000
5,000 Health Dimensions Inc Ser 1987 A, 2.75% due 2/1/94................................... 2.75 5,000,000
5,460 Huntington Memorial Hospital Ser 1985, 2.75% due 1/5/94 ............................. 2.75 5,460,000
5,000 Kaiser Permanente Semiannual Ser 1985, 2.70% due 2/15/94 ............................ 2.70 5,000,000
3,500 Memorial Health Services 1985 Ser A, 2.70% due 5/15/94 .............................. 2.70 3,500,000
2,800 Pooled Loan Ser 1987 A (MBIA Insured), 2.95% due 1/6/94 ............................. 2.95 2,800,000
4,000 St Joseph Health System Ser 1991 B, 4.50% due 1/3/94 ................................ 4.50 4,000,000
California Pollution Control Financing Authority,
1,750 Noranda-Grey Eagle Mines Inc Ser 1984 B, 2.15% due 1/5/94 ........................... 2.15 1,750,000
5,000 North County Recycling Center 1991 Series B, 2.90% due 1/5/94 ....................... 2.90 5,000,000
10,070 Stanislaus Inc Ser 1987 (AMT), 3.80% due 1/3/94 ..................................... 3.80 10,070,000
10,000 California Public Capital Improvements Financing Authority,
Pooled Ser 1988 C, 2.25% due 3/15/94............................................... 2.25 10,000,000
5,000 Contra Costa Transportation Authority, Sales Tax 1993 Ser A
(FGIC Insured), 3.00% due 1/5/94................................................... 3.00 5,000,000
4,700 Daly City Housing Development Finance Agency, Serramonte--
Del Ray Multi-family Ser 1985 A, 2.85% due 1/6/94.................................. 2.85 4,700,000
5,000 Irvine, The Irvine Co Multi-family Ser 1983 A, 3.00% due 1/4/94...................... 3.00 5,000,000
3,800 Kern County, Public Facilities Ser 1986 C COPs, 2.80% due 1/5/94..................... 2.80 3,800,000
3,000 Long Beach, Memorial Health Services Semiannual Ser 1984 C,
2.70% due 3/1/94................................................................... 2.70 3,000,000
2,900 Los Angeles, Multi-family 1985 Ser K, 2.65% due 1/4/94............................... 2.65 2,900,000
5,500 Los Angeles County Metropolitan Transportation Authority, Prop C
Sales Tax Refg Ser 1993 A (MBIA Insured), 2.90% due 1/6/94......................... 2.90 5,500,000
8,600 Newport Beach, Hoag Memorial Hospital/Presbyterian 1992 Ser A,
4.45% due 1/3/94................................................................... 4.45 8,600,000
4,600 Ontario Redevelopment Agency, Daisy XX Assoc Ltd Ser 1984,
2.75% due 1/6/94................................................................... 2.75 4,600,000
2,000 Orange County, Niguel Summit II Apts Issue U of 1985,
2.75% due 1/4/94................................................................... 2.75 2,000,000
5,000 Orange County Sanitation Districts Ser 1992 C COPs (FGIC Insured),
4.25% due 1/3/94................................................................... 4.25 5,000,000
3,900 Redlands, Orange Village Apts 1988 Ser A (AMT), 3.05% due 1/5/94..................... 3.05 3,900,000
5,000 Sacramento County Administration Center & Courthouse Ser 1990
COPs, 2.85% due 1/6/94............................................................. 2.85 5,000,000
6,000 San Diego County Regional Transportation Commission, Sales Tax
1992 Ser A (FGIC Insured), 2.90% due 1/5/94........................................ 2.90 6,000,000
2,000 San Jose, Kimberly Woods Apts Issue of 1984, 2.75% due 1/6/94........................ 2.75 2,000,000
2,465 Turlock Irrigation District Ser 1988 A, 3.00% due 1/5/94............................. 3.00 2,465,000
</TABLE>
<PAGE>
<TABLE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
PORTFOLIO OF INVESTMENTS December 31, 1993 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Current
thousands) Yield Value
- --------- ----- -----
<C> <S> <C> <C>
PUERTO RICO
$ 1,000 Puerto Rico Government Development Bank, Refg Ser 1985,
3.00% due 1/5/94................................................................... 3.00% $ 1,000,000
-----------
TOTAL CALIFORNIA EXEMPT SHORT-TERM VARIABLE RATE
MUNICIPAL OBLIGATIONS (AMORTIZED COST $150,385,000).............................. 150,385,000
-----------
Yield to
Maturity
on Date of
Purchase
--------
CALIFORNIA EXEMPT COMMERCIAL PAPER (30.2%)
5,021 California Department of Water Resources Ser 1, 2.35% due 2/15/94.................... 2.35% 5,021,000
California Pollution Control Financing Authority,
4,000 Pacific Gas & Electric Co. Ser 1988 B (AMT), 2.55% due 2/9/94...................... 2.55 4,000,000
3,500 Pacific Gas & Electric Co. Ser 1988 C, 2.50% due 2/24/94........................... 2.50 3,500,000
8,000 Pacific Gas & Electric Co. Ser 1988 E, 2.60% due 2/24/94........................... 2.60 8,000,000
3,000 Southern California Edison Co Ser 1985 C, 2.50% due 2/24/94........................ 2.50 3,000,000
2,000 Delmar Race Track Authority, Ser 1993 BANs, 2.40% due 2/23/94........................ 2.40 2,000,000
5,700 East Bay Municipal Utility District, Water, 2.25% due 5/18/94........................ 2.25 5,700,000
3,000 Irvine Assessment District #85-7, 2.25% due 3/10/94.................................. 2.25 3,000,000
Los Angeles County, Ser B TRANs,
7,000 2.50% due 1/26/94.................................................................. 2.50 7,000,000
4,000 2.55% due 3/15/94.................................................................. 2.55 4,000,000
7,000 2.55% due 3/17/94.................................................................. 2.55 7,000,000
Los Angeles Department of Water & Power, Electric Plant,
5,000 2.60% due 4/8/94................................................................... 2.60 5,000,000
2,400 2.70% due 5/13/94.................................................................. 2.70 2,400,000
4,500 2.65% due 5/13/94.................................................................. 2.65 4,500,000
5,000 Orange County Local Transportation Authority, Sales Tax,
2.20% due 4/11/94.................................................................. 2.20 5,000,000
Sacramento Municipal Utility District, Ser H,
4,000 2.60% due 1/27/94.................................................................. 2.60 4,000,000
6,000 2.50% due 2/18/94.................................................................. 2.50 6,000,000
------------
TOTAL CALIFORNIA EXEMPT COMMERCIAL PAPER
(AMORTIZED COST $79,121,000)........................................................ 79,121,000
------------
CALIFORNIA EXEMPT SHORT-TERM MUNICIPAL NOTES (10.7%)
5,000 Alameda County, 1993-1994 TRANs, dtd 7/8/93 3.25% due 7/29/94........................ 2.75 5,013,915
12,000 California School Cash Reserve Program Authority, 1993 Pool Ser A,
dtd 7/2/93 3.40% due 7/5/94........................................................ 2.90 12,029,499
5,000 Los Angeles County School & Community College Districts, 1993-
1994 Ser A Pooled TRANs COPs, dtd 7/1/93 3.25% due 6/30/94......................... 2.85 5,009,569
6,000 San Diego Area Local Governments, 1993 Pool TRANs COPs,
dtd 7/1/93 3.25% due 6/30/94....................................................... 2.85 6,011,483
------------
TOTAL CALIFORNIA EXEMPT SHORT-TERM MUNICIPAL NOTES
(AMORTIZED COST $28,064,466)........................................................ 28,064,466
------------
TOTAL INVESTMENTS (AMORTIZED COST $257,570,466) (a).................................. 98.2% 257,570,466
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES....................................... 1.8 4,777,420
----- ------------
NET ASSETS........................................................................... 100.0% $262,347,886
===== ============
- ------------
<FN>
* Due date reflects next rate change.
(a) Cost is the same for federal tax purposes.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
FINANCIAL STATEMENTS
===============================================================================
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1993 (unaudited)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value
(amortized cost $257,570,466) (Note 1)................. $257,570,466
Cash.................................................... 2,773,066
Receivable for:
Interest............................................... 1,249,850
Investments sold....................................... 901,835
Deferred organizational expenses (Note 1)............... 26,646
Prepaid expenses........................................ 18,938
------------
TOTAL ASSETS........................................ 262,540,801
------------
LIABILITIES:
Payable for shares of beneficial interest
repurchased............................................ 121
Investment management fee payable (Note 2).............. 113,624
Plan of distribution fee payable (Note 3)............... 22,725
Accrued expenses (Note 4)............................... 56,445
------------
TOTAL LIABILITIES................................... 192,915
------------
NET ASSETS:
Paid in capital......................................... 262,363,706
Accumulated realized loss on
investments--net....................................... (16,057)
Accumulated undistributed investment
income--net............................................ 237
------------
NET ASSETS.......................................... $262,347,886
============
NET ASSET VALUE PER SHARE, 262,363,706
shares outstanding (unlimited shares
authorized of $.01 par value).......................... $1.00
=====
<CAPTION>
STATEMENT OF OPERATIONS For the six months
ended December 31, 1993 (unaudited)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
INTEREST INCOME........................................ $3,014,420
----------
EXPENSES
Investment management fee (Note 2).................... 618,418
Plan of distribution fee (Note 3)..................... 123,684
Professional fees..................................... 31,153
Transfer agent fees and expenses (Note 4)............. 28,774
Registration fees..................................... 22,147
Shareholder reports and notices (Note 4).............. 20,227
Trustees' fees and expenses........................... 10,570
Organizational expenses (Note 1)...................... 5,757
Other................................................. 2,051
----------
TOTAL EXPENSES...................................... 862,781
----------
NET INVESTMENT INCOME AND
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................... $2,151,639
==========
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
===================================================================================================================================
<CAPTION>
For the
six months ended For the
December 31, 1993 year ended
(unaudited) June 30, 1993
---------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income--net...................................................... $ 2,151,639 $ 3,293,182
Realized loss on investments--net........................................... --0-- (16,057)
----------- ------------
Net increase in net assets resulting from operations....................... 2,151,639 3,277,125
Dividends to shareholders from investment income--net........................ (2,151,433) (3,293,161)
Transactions in shares of beneficial interest--net increase (Note 5)......... 60,198,945 31,800,872
----------- -----------
Total increase............................................................ 60,199,151 31,784,836
NET ASSETS:
Beginning of period.......................................................... 202,148,735 170,363,899
----------- -----------
END OF PERIOD (including undistributed net investment income of $237 and $31,
respectively)............................................................... $262,347,886 $202,148,735
============ ============
See Notes to Financial Statements
</TABLE>
<PAGE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
===============================================================================
1. ORGANIZATION AND ACCOUNTING POLICIES--Active Assets California Tax-Free
Trust (the "Trust") is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a diversified open-end management investment company.
It was organized on July 10, 1991 as a Massachusetts business trust and on
October 7, 1991 issued 100,000 shares of beneficial interest for $100,000 to
Dean Witter Reynolds Inc. to effect the Trust's initial capitalization. The
Trust commenced operations on November 12, 1991.
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). In computing net
investment income, the Trust amortizes any premiums and original issue
discounts and accrues interest daily on securities owned. Realized gains and
losses on security transactions are determined on the identified cost method.
C. Federal Income Tax Status--It is the Trust'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 non-taxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders--Dividends and
distributions to shareholders are recorded by the Trust as of the close of the
Trust's business day.
E. Organizational Expenses--The Trust's Investment Manager paid
organizational expenses of the Trust in the amount of approximately $46,500.
The Trust reimbursed the Investment Manager for these costs. These expenses are
being amortized by the Trust 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 "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Trust pays its Investment Manager a management fee, calculated
daily and payable monthly, by applying the following annual rates to the net
assets of the Trust determined as of the close of each business day: 0.50% of
the portion of the daily net assets not exceeding $500 million; 0.425% of the
portion of the daily net assets exceeding $500 million but not exceeding $750
million; 0.375% of the portion of the daily net assets exceeding $750 million
but not exceeding $1 billion; 0.35% of the portion of the daily net assets
exceeding $1 billion but not exceeding $1.5 billion; 0.325% of the portion of
the daily net assets exceeding $1.5 billion but not exceeding $2 billion, 0.30%
of the portion of the daily net assets exceeding $2 billion but not exceeding
$2.5 billion; 0.275% of the portion of the daily net assets exceeding $2.5
billion but not exceeding $3 billion; and 0.25% of the portion of the daily net
assets exceeding $3 billion. Under the terms of the Agreement, in addition to
managing the Trust's investments, the Investment Manager maintains certain of
the Trust's books and records and furnishes office space and facilities,
equipment, clerical, bookkeeping and certain legal services, and pays the
salaries of all personnel, including officers of the Trust 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 Trust.
<PAGE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
===============================================================================
3. PLAN OF DISTRIBUTION--Shares of beneficial interest of the Trust are
distributed by Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager. The Trust has entered into a Plan of Distribution
(the "Plan"), pursuant to Rule 12b-1 under the Act, with the Distributor
whereby the Distributor finances certain activities in connection with the
distribution of shares of the Trust.
Under the Plan the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Trust, except for expenses
that the Trustees determine to reimburse, as described below. The following
activities and services may be provided by the Distributor under the Plan:
(1) compensation to sales representatives 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 shares; (3) expenses
incurred in connection with promoting sales of 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 Trust is authorized to reimburse the Distributor for specific
expenses the Distributor incurs or plans to incur in promoting the distribution
of the Trust'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 .15 of 1% of
the Trust's average daily net assets during the month. For the six months ended
December 31, 1993 the distribution fee established by the Trustees, and accrued
was at the annual rate of .10 of 1%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and the proceeds from sales/maturities of portfolio securities for
the six months ended December 31, 1993 aggregated $271,251,000 and
$242,035,000, respectively.
Dean Witter Trust Company ("DWTC"), an affiliate of the Investment
Manager and the Distributor, is the Trust's transfer agent. During the six
months ended December 31, 1993 the Trust incurred transfer agent fees and
expenses of $28,774 with DWTC, of which $7,009 was payable at December 31,
1993.
Bowne & Co., Inc. is an affiliate of the Trust by virtue of a common
Trust Trustee and Director of Bowne & Co., Inc. During the six months ended
December 31, 1993 the Trust paid Bowne & Co., Inc. $4,176 for printing of
shareholder reports.
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial
interest, at $1.00 per share, were as follows:
For the six months For the year
ended ended
December 31, 1993 June 30, 1993
---------------- ------------
Shares sold..................................... 524,221,676 683,300,787
Shares issued in reinvestment of dividends...... 2,151,434 3,293,161
----------- -----------
526,373,110 686,593,948
Shares repurchased.............................. (466,174,165) (654,793,076)
----------- -----------
Net increase in shares outstanding.............. 60,198,945 31,800,872
=========== ===========
6. FEDERAL INCOME TAX STATUS--Any net capital loss incurred after October 31,
within the taxable year is deemed to arise on the first business day of the
Trust's next taxable year. The trust incurred and elected to defer net capital
losses of approximately $16,000 for the year ended June 30, 1993.
<PAGE>
<TABLE>
ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST
FINANCIAL HIGHLIGHTS (unaudited)
Selected data and ratios for a share of beneficial interest outstanding throughout each period:
===================================================================================================================================
<CAPTION>
For the period
For the six For the year November 12, 1991*
months ended ended through
December 31, 1993 June 30, 1993 June 30, 1992
----------------- ------------- ------------------
<S> <C> <C> <C
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Net investment income....................................... 0.009 0.018 0.017
Less dividends from net investment
income..................................................... (0.009) (0.018) (0.017)
-------- -------- --------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00
======== ======== ========
TOTAL INVESTMENT RETURN...................................... 0.87%(2) 1.84% 1.66%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................... $262,348 $202,149 $170,364
Ratio of expenses to average net assets..................... 0.70%(1) 0.71% 0.56%(1)(3)
Ratio of net investment income to
average net assets......................................... 1.74%(1) 1.82% 2.42%(1)(3)
- ------------
<FN>
* Date of commencement of operations.
(1) Annualized.
(2) Not annualized.
(3) If the Trust had borne all expenses that were assumed or waived by the Investment Manager, the above annualized expense
ratio would have been .80% ($.006 per share) and the above annualized investment income--net ratio would have been 2.18%
($.023 per share).
See Notes to Financial Statements
</TABLE>
<PAGE>
TRUSTEES
Jack F. Bennett
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Mr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Albert T. Sommers
Edward R. Telling
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
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
LEGAL COUNSEL
Sheldon Curtis
Two World Trade Center
New York, New York 10048
INDEPENDENT ACCOUNTANTS
Price Waterhouse
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the
records of the Trust without examination by the independent accountants
and accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders of
the Trust. For more detailed information about the Trust, its officers and
trustees, fees, expenses and other pertinent information, please see
the prospectus of the Trust.
This report is not authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an effective prospectus.
ACTIVE
ASSETS
ACCOUNT
ACTIVE ASSETS
CALIFORNIA
TAX-FREE TRUST
SEMIANNUAL REPORT
DECEMBER 31, 1993
