DEAN WITTER HEALTH SCIENCES TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
===============================================================================
We are pleased to present the semiannual report for Dean Witter Health
Sciences Trust for the six-month period ended January 31, 1994.
Investor sentiment toward health care stocks has changed tremendously.
Though concern over health care reform certainly still exists, there no longer
seems to be that fear of some draconian plan out of Washington being put into
place. As a result, investors are once again searching for investment
opportunities in this sector. As a matter of fact, health care stocks were one
of the best-performing groups during the closing months of 1993. This is
reflected in the Fund's impressive 27.66 percent total return for the six
months ended January 31, 1994, an encouraging departure from the
underperformance of the six months ended July 31, 1993, when the Fund lost 7.8
percent. The Fund's performance over the period under review was more than
three times that of the Standard & Poor's 500 Index (S&P 500), which registered
a total return of 8.97 percent. For the trailing 12-month period ended January
31, 1994, the Fund produced a total return of 16.42 percent, versus 12.88
percent for the S&P 500.
Unfortunately, no one really knows what Washington's final health care
reform program will look like. We do believe, however, that there will be a
"meeting of the minds" between the politicians and the health-care providers.
Whatever happens, the operative word assuredly will be compromise. We believe
it is possible that a program could be in place before next November's
elections. More important at this point: the intense debate that is likely to
accompany this process could cause some volatility in the health-care sector
during 1994.
However the drama unfolds, we will continue to search out investment
opportunities in the health-care industry. In this environment, we believe many
industries could thrive, such as generic drug manufacturers and health
maintenance organizations (HMO's)--which benefit from the public's demand for
cost containment--and biotechnology companies which began to recover during the
second half of 1993. For other sectors, like domestic pharmaceutical companies,
tough times are likely to linger in the weeks and months ahead because of the
continued intensity of competition within the industry. In pharmaceuticals, we
have a small position in the U.S., but are heavily weighted in European
companies. It's interesting to note that the European companies not only have
an attractive new-product pipeline and a strong earnings outlook, but are also
attractively valued compared to their U.S. counterparts. Hoffmann LaRoche, a
Swiss company, has been a strong performer for the Fund and we continue to like
the company's prospects.
On January 31, 1994, the biotechnology industry represented only 12 percent
of the Fund's assets. We expect that allocation to increase to the 15 percent
range by 1995. Right now, only a handful of biotechnology companies are
operating at a profit. But as we approach the middle of the decade, we are
likely to see more companies turn profitable as they commercialize products
currently under development.
Going forward, we are confident the Fund will be an attractive vehicle for
capital appreciation in the 1990s. Driven by an aging population and the
potential for new products, especially in the biotechnology industry, the
outlook for the health care industry is for continued growth.
We appreciate your support of Dean Witter Health Sciences 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>
DEAN WITTER HEALTH SCIENCES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1994 (unaudited)
===============================================================================
<CAPTION>
Number of
Shares COMMON STOCKS (99.7%) Value
- --------- -----
<C> <S> <C>
BIOTECHNOLOGY (12.7%)
60,000 Biogen, Inc.*.................................... $ 3,120,000
215,000 CellPro, Inc.*................................... 7,041,250
150,000 Centocor, Inc.*.................................. 1,818,750
120,000 Cephalon, Inc.*.................................. 2,130,000
85,000 Chiron Corp.*.................................... 8,096,250
85,000 Collagen Corp.*.................................. 2,465,000
100,000 Cor Therapeutics, Inc.*.......................... 1,575,000
120,000 Cortech, Inc.*................................... 1,620,000
20,000 Genentech, Inc.*................................. 1,007,500
10,000 Gilead Sciences, Inc.*........................... 125,000
120,000 Protein Design Laboratories, Inc.*............... 3,510,000
100,000 Regeneron Pharmaceutical, Inc.*.................. 1,575,000
160,000 Synergen, Inc.*.................................. 2,220,000
230,000 US Bioscience, Inc.*............................. 2,185,000
------------
38,488,750
------------
COMMERCIAL SERVICES (0.3%)
50,000 Envoy Corp.*..................................... 943,750
------------
COMPUTER SOFTWARE (7.7%)
100,000 Cerner Corp.*.................................... 4,800,000
285,000 Clinicom, Inc.*.................................. 6,697,500
95,000 GMIS, Inc.*...................................... 1,330,000
170,000 HBO & Co.*....................................... 8,160,000
30,000 Medic Computer Systems, Inc.*.................... 502,500
100,000 Medicus Systems Corp.*........................... 1,825,000
------------
23,315,000
------------
DRUGS (20.8%)
17,050 Arjo AB ADR+*.................................... 528,550
330,000 Astra AB, Series "A" Free (Sweden)............... 7,790,880
75,000 Circa Pharmaceuticals, Inc.*..................... 1,012,500
110,000 Elan Corp. ADR+*................................. 4,950,000
70,000 Genzyme Corp.*................................... 2,222,500
37,800 Grupo Casa Autrey, S.A. ADR+*.................... 1,157,625
30,000 IVAX Corp.*...................................... 963,750
185,000 Liposome Technology, Inc.*....................... 2,127,500
75,000 Mylan Laboratories*.............................. 1,771,875
235,000 Roche Holdings Ltd. ADR+......................... 11,456,250
145,000 Scherer (R.P.) Corp.*............................ 5,800,000
6,250 Schering AG (Germany)............................ 4,013,036
40,000 Sciclone Pharmaceuticals, Inc.*.................. 885,000
250,000 Shionogi & Co. (Japan)........................... 2,263,961
190,000 Teva Pharmaceutical Industries Ltd. ADR+......... 5,985,000
75,000 Viagene, Inc.*................................... 731,250
115,500 Viratek, Inc.*................................... 1,126,125
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER HEALTH SCIENCES TRUST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1994 (UNAUDITED) (CONTINUED)
===============================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
80,000 Watson Pharmaceuticals, Inc.*.................... $ 2,180,000
60,000 Zeneca Group PLC ADR+*........................... 2,167,500
260,000 Zenith Laboratories, Inc.*....................... 4,095,000
------------
63,228,302
------------
HEALTH CARE DIVERSIFIED (2.5%)
30,000 Anesta Corp.*.................................... 375,000
140,000 General Nutrition Cos.*.......................... 3,605,000
100,000 Healthsouth Rehabilitation Corp.*................ 2,825,000
41,666 Horizon Healthcare Corp.*........................ 916,666
------------
7,721,666
------------
HEALTH CARE EQUIPMENT AND SERVICES (7.2%)
100,000 Bard, Inc.*...................................... 2,937,500
75,000 Coastal Healthcare Group, Inc.*.................. 3,018,750
60,000 Columbia Healthcare Corp.*....................... 2,272,500
110,000 Quantum Health Res. Inc.*........................ 3,905,000
50,000 Renal Treatment Centers, Inc.*................... 1,100,000
50,000 Safetytech Corp.*................................ 550,000
50,000 Sybron Corp.*.................................... 1,662,500
50,000 Trimedyne, Inc.*................................. 706,250
40,000 United States Surgical Corp.*.................... 1,275,000
110,000 Ventritex, Inc.*................................. 4,372,500
------------
21,800,000
------------
HOSPITAL MANAGEMENT (10.8%)
95,000 American Healthcorp, Inc.*....................... 2,256,250
100,000 Charter Medical Corp.*........................... 2,437,500
125,000 Community Health Systems, Inc.*.................. 2,718,750
140,000 Community Psychiatric Centers*................... 2,415,000
100,000 Diagnostek, Inc.*................................ 2,050,000
120,000 Genesis Health Ventures, Inc.*................... 2,910,000
200,000 Healthtrust, Inc.*............................... 5,625,000
50,000 Homedco Group, Inc.*............................. 1,787,500
80,000 Mariner Health Group, Inc.*...................... 1,870,000
130,000 National Medical Enterprise*..................... 2,063,750
100,000 PhyCor, Inc.*.................................... 3,325,000
60,000 Physician Corp. of America*...................... 1,755,000
80,000 Qual-Medical, Inc.*.............................. 1,650,000
------------
32,863,750
------------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER HEALTH SCIENCES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1994 (unaudited) (continued)
===============================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
MEDICAL EQUIPMENT (0.8%)
30,000 Sofamor Danek Group, Inc.*....................... $ 1,065,000
40,000 Summit Technology, Inc.*......................... 1,410,000
------------
2,475,000
------------
MEDICAL PRODUCTS & SUPPLY (6.9%)
80,000 I-Stat Corp.*.................................... 1,180,000
250,000 IDEXX Laboratories, Inc.*........................ 6,687,500
50,000 Paragon Trade Brands, Inc.*...................... 1,531,250
155,000 Perseptive Biosystems, Inc.*..................... 4,223,750
15,000 PerSeptive Tech II Corp.*........................ 412,500
110,000 Rexall Sundown, Inc.............................. 1,842,500
50,000 Safeskin Corp.*.................................. 737,500
95,000 Target Therapeutics, Inc.*....................... 2,280,000
80,000 Thermedics, Inc.*................................ 1,150,000
40,000 Visx, Inc.*...................................... 940,000
------------
20,985,000
------------
MEDICAL SERVICES (30.0%)
170,000 Abbey Healthcare Group, Inc.*.................... 4,760,000
95,000 Coventry Corp.*.................................. 4,821,250
70,000 Genetic Therapy, Inc.*........................... 1,312,500
220,200 Health Care & Retirement Corp.*.................. 5,642,625
70,000 Health Management System, Inc.*.................. 1,662,500
137,000 Healthsource, Inc.*.............................. 8,237,125
390,000 Humana, Inc.*.................................... 7,897,500
140,000 Integrated Health Services, Inc.*................ 4,935,000
150,000 Medaphis Corp.*.................................. 5,437,500
230,000 Mid Atlantic Medical Services, Inc.*............. 7,015,000
170,000 Oxford Health Plans, Inc.*....................... 11,220,000
230,000 Pacific Physician Services, Inc.*................ 6,727,500
100,000 Physicians Health Services, Inc. (Class A)*...... 2,050,000
60,000 Ramsay--HMO, Inc.*............................... 2,527,500
210,000 Summit Care Corp.*............................... 4,672,500
120,000 United Healthcare Corp.*......................... 10,260,000
80,000 Wellcare Mgmt Group, Inc.*....................... 2,060,000
------------
91,238,500
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $216,988,633).................. 303,059,718
-----------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER HEALTH SCIENCES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1994 (unaudited) (continued)
===============================================================================
<CAPTION>
Principal
Amount (in
thousands) SHORT-TERM INVESTMENT (0.3%) Value
- ---------- -----
<C> <S> <C>
REPURCHASE AGREEMENT (0.3%)
$949 The Bank of New York 3.125% due 2/1/94 (dated
1/31/94; proceeds $948,695; collaterized by
$899,608 U.S. Treasury Note 6.25% due 2/15/03
valued at $967,585)
(Identified Cost $948,613)...................... $ 948,613
------------
TOTAL INVESTMENTS (IDENTIFIED COST
$217,937,246)(a)......................... 100.0% 304,008,331
LIABILITIES IN EXCESS OF OTHER ASSETS..... 0.0 (29,181)
----- ------------
NET ASSETS................................ 100.0% $303,979,150
===== ============
<FN>
- ----------
+ American Depository Receipt.
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is $219,656,212; the
aggregate gross unrealized appreciation is $85,846,532 and the aggregate
gross unrealized depreciation is $1,494,413, resulting in net unrealized
appreciation of $84,352,119.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER HEALTH SCIENCES TRUST
FINANCIAL STATEMENTS
===============================================================================
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1994 (unaudited)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $217,937,246) (Note 1)................ $304,008,331
Receivable for:
Investments sold....................................... 9,981,213
Shares of beneficial interest sold..................... 1,364,566
Interest............................................... 16,957
Dividends.............................................. 1,600
Deferred organizational expense (Note 1)................ 120,767
Prepaid expenses........................................ 59,589
------------
TOTAL ASSETS......................................... 315,553,023
------------
LIABILITIES:
Payable for:
Investments purchased.................................. 10,077,830
Shares of beneficial interest repurchased.............. 882,886
Investment management fee (Note 2)..................... 244,950
Plan of distribution fee (Note 3)...................... 244,950
Accrued expenses (Note 4)............................... 123,257
------------
TOTAL LIABILITIES.................................... 11,573,873
------------
NET ASSETS:
Paid-in-capital......................................... 251,677,421
Accumulated realized loss--net.......................... (31,059,312)
Unrealized appreciation on investments--net............. 86,071,085
Accumulated investment loss--net........................ (2,710,044)
------------
NET ASSETS........................................... $303,979,150
============
NET ASSET VALUE PER SHARE, 25,829,173
shares outstanding (unlimited authorized
shares of $.01 par value).............................. $11.77
======
<CAPTION>
===============================================================================
STATEMENT OF OPERATIONS For the six months
ended January 31, 1994 (unaudited)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
INCOME
Dividends (net of $6,504 foreign withholding tax)..... $ 225,017
Interest.............................................. 61,106
----------
TOTAL INCOME......................................... 286,123
----------
EXPENSES
Investment management fee (Note 2).................... 1,300,670
Plan of distribution fee (Note 3)..................... 1,300,670
Transfer agent fees and expenses (Note 4)............. 252,881
Professional fees..................................... 38,515
Shareholder reports and notices....................... 31,806
Registration fees..................................... 25,071
Custodian fees........................................ 19,836
Organizational expenses (Note 1)...................... 16,244
Trustees' fees and expenses........................... 7,853
Other................................................. 2,621
----------
TOTAL EXPENSES....................................... 2,996,167
----------
INVESTMENT LOSS--NET................................ (2,710,044)
----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS--NET (NOTE 1):
Realized loss on investments--net...................... (10,813,691)
Change in unrealized appreciation on
investments--net...................................... 78,189,795
----------
NET GAIN ON INVESTMENTS.............................. 67,376,104
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.......................... $64,666,060
===========
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
===============================================================================
<CAPTION>
For the period
For the October 30, 1992
six months ended through
January 31, 1994 July 31, 1993
(unaudited) (Note 1)
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment loss--net.................... $ (2,710,044) $ (2,098,326)
Realized loss on investments--net....... (10,813,691) (20,245,621)
Change in unrealized appreciation on
investments--net....................... 78,189,795 7,881,290
------------ ------------
Net increase (decrease) in net assets
resulting from operations............ 64,666,060 (14,462,657)
Transactions in shares of beneficial
interest--net increase (Note 5)......... 7,667,003 246,008,744
------------ ------------
Total increase........................ 72,333,063 231,546,087
NET ASSETS:
Beginning of period...................... 231,646,087 100,000
------------ ------------
END OF PERIOD (including accumulated net
investment loss of $2,710,044 and $0,
respectively)........................... $303,979,150 $231,646,087
============ ============
See Notes to Financial Statements
</TABLE>
<PAGE>
DEAN WITTER HEALTH SCIENCES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
===============================================================================
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Health Sciences 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. It was
organized on May 26, 1992 as a Massachusetts business trust and on August 13,
1992 issued 10,000 shares of beneficial interest for $100,000 to Dean Witter
Reynolds Inc., an affiliate of the Investment Manager, to effect the Fund's
initial capitalization. The Fund commenced operations on October 30, 1992.
The following is a summary of significant accounting policies:
A. Valuation of Investments--(1) an equity portfolio security listed or
traded on the New York or American Stock Exchange is valued at its latest sale
price on that exchange (if there were no sales that day, the security is valued
at the latest bid price); (2) all other portfolio securities for which over-
the-counter market quotations are readily available are valued at the latest
bid price; (3) when market quotations are not readily available, portfolio
securities are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Trustees
(valuation of debt securities for which market quotations are not readily
available may be based upon current market prices of securities which are
comparable in coupon, rating and maturity or an appropriate matrix utilizing
similar factors); (4) the fair value of short-term debt securities which mature
at a date less than sixty days subsequent to the valuation date are determined
on an amortized cost or amortized value basis; and (5) the foreign currency
market value of investment securities are translated at the exchange rates at
the end of the period.
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 on the identified cost
method. Dividend income is recorded on the ex-dividend date. Interest income
includes amortization of discounts on certain short-term securities.
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 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 its shareholders on the ex-dividend date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassifications. Dividends
and distributions which exceed net investment income and net realized capital
gains for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
E. Organizational Expenses--The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately $162,000.
The Fund has reimbursed the Investment Manager for all of these costs which
have been deferred and are being amortized by the Fund on the straight-line
method over a period not to exceed five years from the commencement of
operations.
<PAGE>
DEAN WITTER HEALTH SCIENCES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
===============================================================================
F. Repurchase Agreements--The Fund's custodian takes possession on
behalf of the Fund of the collateral pledged for investments in repurchase
agreements. It is the policy of the Fund to value the underlying collateral
daily on a mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest. In
the event of default of the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation.
2. INVESTMENT MANAGEMENT AGREEMENT--Pursuant to an Investment Management
Agreement (the "Agreement") with Dean Witter InterCapital Inc. (the "Investment
Manager"), the Fund pays its Investment Manager a management fee, accrued daily
and payable monthly, by applying the annual rate of 1% to the net assets of the
Fund determined as of the close of each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes office space and facilities, equipment, clerical,
bookkeeping and certain legal services, and pays the salaries of all personnel,
including officers of the Fund who are employees of the Investment Manager. The
Investment Manager also bears the cost of telephone services, heat, light,
power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION--Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager.
The Fund has adopted a Plan of Distribution (the "Plan"), pursuant to
Rule 12b-1 under the Act under which the Fund pays the Distributor compensation
accrued daily and payable monthly at the annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestments of dividends or capital
gains distributions), less the average daily aggregate net asset value of the
Fund's shares redeemed since the Fund's inception upon which a contingent
deferred sales charge has been imposed or upon which such charge has been
waived; or (b) the Fund's average daily net assets. Amounts paid under the Plan
are paid to the Distributor to compensate it for the services provided and the
expenses borne by it and others in the distribution of the Fund's shares,
including the payment of commissions for sales of the Fund's shares and
incentive compensation to and expenses of Dean Witter Reynolds Inc.'s account
executives and others, who engage in or support distribution of the Fund's
shares or who service shareholder accounts, including overhead and telephone
expenses; printing and distribution of prospectuses and reports used in
connection with the offering of the Fund's shares; and preparation, printing
and distribution of sales literature and advertising materials. In addition,
the Distributor may be compensated under the Plan for its opportunity costs in
advancing such amounts, which compensation would be in the form of a carrying
charge on any unreimbursed expenses incurred by the Distributor.
Provided that the Plan continues in effect, any cumulative expenses incurred
by the Distributor, but not yet recovered, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.
The Distributor has informed the Fund that for the six months ended
January 31, 1994, it received approximately $437,000 in contingent deferred
sales charges from redemptions of the Fund's shares. The Fund's shareholders
pay such charges which are not an expense of the Fund.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and the proceeds from sales of portfolio securities (excluding short-
term investments) for the six months ended January 31, 1994, aggregated
$119,645,278 and $113,355,465, respectively. For the same period, the Fund
incurred brokerage commissions of approximately $56,000 with Dean Witter
Reynolds Inc. for transactions executed on behalf of the Fund.
<PAGE>
DEAN WITTER HEALTH SCIENCES TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
===============================================================================
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. During the six months ended January
31, 1994, the Fund incurred transfer agent fees and expenses of approximately
$253,000, of which approximately $64,000 was payable at January 31, 1994.
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
For the period October 30, 1992
For the six months through July 31, 1993
ended January 31, 1994 (Note 1)
----------------------- --------------------------
Shares Amount Shares Amount
--------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Sold................... 5,097,147 $52,164,772 28,901,791 $280,298,687
Repurchased............ (4,380,695) (44,497,769) (3,799,070) (34,289,943)
--------- ----------- ---------- ------------
Net increase........... 716,452 $ 7,667,003 25,102,721 $246,008,744
========= =========== ========== ============
</TABLE>
6. FEDERAL INCOME TAXES--Any net capital losses incurred after October 31
("post-October losses") within the taxable year are deemed to arise on the
first business day of the Fund's next taxable year. The Fund incurred and will
elect to defer such net capital losses of approximately $18,500,000 during
fiscal 1993. To the extent that these carryover losses are used to offset
future capital gains, it is probable that the gains so offset will not be
distributed to shareholders. As of July 31, 1993, the Fund had temporary
book/tax differences primarily attributable to post-October losses and capital
loss deferrals attributable to wash sales and permanent book/tax differences
attributable to a net operating loss. To reflect cumulative reclassifications
arising from permanent book/tax differences as of July 31, 1993, accumulated
net investment loss was credited and paid-in-capital was charged $2,098,326.
<PAGE>
<TABLE>
DEAN WITTER HEALTH SCIENCE 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 October 30, 1993*
months ended through
January 31, 1994 January 31, 1993
----------------- ----------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period..... $ 9.22 $10.00
------ ------
Net investment loss...................... (0.10) (0.08)
Net realized and unrealized gain (loss)
on investments.......................... 2.65 (0.70)
------ ------
Total from investment operations......... 2.55 (0.78)
------ ------
Net asset value, end of period........... $11.77 $ 9.22
====== ======
TOTAL INVESTMENT RETURN+.................. 27.66% (7.80%)(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands). $303,979 $231,646
Ratio of expenses to average net assets.. 2.30% (2) 2.38% (2)
Ratio of net investment loss to average
net assets.............................. (2.08%)(2) (1.38%)(2)
Portfolio turnover rate.................. 44% 55%
<FN>
- ------------
* Date of commencement of operations.
+ Does not reflect the deduction of sales load.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
</TABLE>
<PAGE>
TRUSTEES
Jack F. Bennett
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Edward R. Telling
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Ronald J. Worobel
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 Fund without examination by the independent accountants and accordingly
they do not express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
HEALTH SCIENCES
TRUST
(LOGO)
SEMIANNUAL REPORT
JANUARY 31, 1994
