DEAN WITTER RETIREMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
===============================================================================
On January 31, 1994, Dean Witter Retirement Series had net assets
totaling more than $27 million, a threefold increase over six months ago, when
assets stood at less than $9 million. The 11 portfolios in the Series offer
retirement-minded investors a broad range of investment opportunities, from
money markets to government securities to various categories of equities and
foreign securities.
An acceleration in housing demand has sparked new-home construction,
while factory operating rates and automobile sales have returned to
historically high levels. Low inventories among both U.S. and foreign
purchasers of steel, forest products, chemicals and other basic materials have
resulted in strong demand for these raw materials. Buoyed by low interest rates
and flat inflation, stocks gained 10.10 percent in 1993, as measured by the
Standard & Poor's 500 (S&P 500). For the six-month period ended January 31,
1994, the S&P 500 produced a total return of 8.96 percent. The overall economic
recovery picked up steam toward year end, driven in part by accelerating
industrial production, stronger consumer confidence and lower unemployment. The
housing market also experienced a boost, with homebuilding up by nearly 5
percent over 1992's level. Despite the economy's strength, inflation remains
relatively benign, with wage gains at a low 2.3 percent and commodity prices
down sharply. By most historical measures of interest rates and inflation,
equities are as much as 15 to 20 percent undervalued.
Looking ahead, we believe that the U.S. economic recovery will continue
at least through the first half of calendar 1994. While economic strength may
appear robust early in 1994, a second-half slowdown is a possible scenario in a
continuing sluggish recovery.
On the fixed-income front, the six months under review (and, for that
matter, all of 1993) was a favorable period for the money and bond markets.
Indeed, the benchmark 30-year U.S. Treasury bond began 1993 at 7.50 percent,
went as low as 5.75 percent and settled in at about 6.25 percent late in the
fourth quarter. Critical to whether this performance continues throughout 1994
are factors such as consumer spending on durable products (automobiles, homes,
etc.); trends in the job markets; at the federal level, fiscal policy--that is,
shifts in the federal budget; and, of course, interest rates.
One of the key forces in pushing intermediate- and long-term interest
rates to 30-year lows during 1993 was the continued progress on the
inflationary front. To illustrate the point, consider that, for 1993, the
Consumer Price Index--a measure of change in consumer prices--rose by only 2.7
percent, the smallest gain in 7 years. Obviously, if inflation rises and price
pressures mount, interest rates will move higher to offset the rising cost of
living and fixed-income values will suffer accordingly. However, if the recent
progress on inflation is maintained, fixed-income securities will retain their
value.
Liquid Asset Series/U.S. Government Money Market Series
Liquid Asset Series and U.S. Government Money Market Series had net
assets in excess of $1.4 million and $1.7 million, respectively, as of January
31, 1994. Net annualized yields for the six-month period for these Series were
3.26 percent and 3.14 percent, respectively. On January 31, 1994, both
portfolios were 100 percent invested in U.S. federal agency obligations. Liquid
Asset Series's
<PAGE>
average maturity was 29 days, with 95 percent of the portfolio due to mature
within three months. U.S. Government Money Market Series's average maturity was
5 days, with 99 percent of the portfolio due to mature within three months.
Stability is the word that best characterizes the money markets during
the six months ended January 31, 1994. In fact, the Federal Reserve Board's
discount rate (the rate the Fed charges member banks for loans) has remained at
3 percent for 19 months. While economic statistics during the period suggested
significant improvement in the pace of activity, there was not much indication
that the economy was in danger of overheating, and, currently, the U.S. economy
is enjoying a moderate, sustainable expansion. However, for the balance of the
year, we believe the Federal Reserve Board may try to stay a step ahead of
inflation by gradually increasing short-term interest rates modestly. The
portfolio is in an excellent position to take advantage of such a trend in
rates. As always, we continue to emphasize liquidity and stability of value
while working to keep yields reflective of prevailing monetary conditions.
U.S. Government Securities Series
For the six-month period ended January 31, 1994, the Series produced a
total return of 2.24 percent. Over the past six months, net asset value (NAV)
has been relatively stable, beginning the period under review at $10.06 per
share and closing on January 31, 1994 at $10.07 per share.
The forecast for the second half of 1993 was for tepid economic growth,
despite a continued decline in interest rates. Interest rates, however, began
to rise in October as signs of renewed vigor in the economy became apparent.
The Series is currently comprised of U.S. Treasury securities with
maturities ranging from one to four years. As the Trust continues to grow
during 1994, mortgage-backed securities will be added to the portfolio to
generate a higher level of income.
Intermediate Income Securities Series
Between July 31, 1993 and January 31, 1994, intermediate rates fell by
5 to 20 basis points, with longer-term maturities experiencing the largest
declines. Interest rates hit their lowest levels of the period under review in
early October, the result of the passage by Congress in late summer of the
budget deficit bill, as well as lower expectations for economic growth and
inflation. However, these expectations were muted during the following months
as new home sales, automobile sales and general economic growth picked up and
interest rates retraced most of their previous path.
For the six months ended January 31, 1994, the Series delivered a total
return of 3.11 percent. During the same period, intermediate U.S. government
bonds and corporate bonds, as measured by the Lehman Brothers Mutual Fund
Government/Corporate Bond Index, returned 3.31 percent. The Fund's size (net
assets totaled $208,831 on January 31, 1994) remains a limiting factor in the
purchase of corporate bonds.
New purchases during the period were aimed at acquiring a wider
corporate exposure, as well as lengthening maturities. As a result of these
transactions, on January 31, 1994 the Series had an average maturity of 4.8
years and an average coupon of 6.96 percent. The average quality rating was
<PAGE>
AA. While it is our goal in the coming months to add additional corporate bonds
to the portfolio, there is currently little incentive to do so given the
prevailing relatively high prices for these securities. However, we are poised
to seize opportunities should conditions change.
American Value Series
For the six-month period ended January 31, 1994, the Series produced a
total return of 8.12 percent. Because the series is still relatively new
(inception was February 1, 1993) and over much of the six-month period net
assets were low (when the period began on August 1, 1993, net assets stood at
just over $300,000), cash levels were abnormally high. As a result, the Series
was restricted from fully reflecting the strength of its stock holdings. With
net assets as of January 31, 1994 totaling approximately $3.3 million, this
difficulty is over. Thus, we expect that our investment strategy of sector
rotation should enable the Series to more closely mirror the underlying
strength of its stock holdings.
We believe the economy will continue to be investment led, rather than
consumer led. Increased global competition has resulted in greater emphasis on
productivity enhancement. Thus, the Series continues to emphasize technology
(semiconductors and communications equipment). The strong U.S. economy and its
increased competitiveness versus other industrialized nations leads us to
maintain our emphasis on consumer cyclicals (automobiles and home furnishings)
and industrial stocks (machinery and electrical equipment), as well.
As the economy progresses both domestically and abroad, industrial
operating rates should climb to levels that historically have allowed for
industrial pricing flexibility. On the other hand, pricing flexibility for
consumer companies should slow as low wages, slow population growth, the aging
of the workforce and modest job growth restrain consumer spending. As pricing
power shifts from the consumer side of the economy to the industrial side,
consumer stocks are expected to lag, while industrial stocks are expected to
lead the market. The Series is well-positioned for this scenario.
Capital Growth Series
Net assets of the Capital Growth Series totaled slightly more than
$179,000 on January 31, 1994. Since the Fund's inception date a little less
than a year ago (February 2, 1993), a very rigid screening process was used to
determine what stocks would be eligible for purchase and retention in the
portfolio. However, in early April, the screens were slightly modified to allow
the management team to qualify a broader list of securities so that, going
forward, the portfolio would consist of more stocks and more industries that
would still be consistent growers. On January 31, 1994, the Series owned 42
equity issues spread among 30 different industry groups.
For the six-month period ended January 31, 1994, the Series produced an
encouraging total return of 9.96 percent compared with a return of 8.96 percent
for the S&P 500. We believe that the Series' outperformance of the broad market
index was largely the result of the modifications made to the screening process
and to the return to favor, among investors, of growth stocks.
Dividend Growth Series
Dividend Growth Series' net assets totaled $8.7 million on January 31,
1994. From the Series' date of inception just a little over a year ago (January
7, 1993), through January 31, 1994, we have used a proprietary screening
process to assist us in building a portfolio of common stocks. At the end of
the period under review, the Series owned 24 equity issues spread among 19
different industry groups.
<PAGE>
For the six months ended January 31, 1994, the Series had a total
return of 11.08 percent compared with a total return of 8.96 percent for the
S&P 500. While the climate for common stocks in general was favorable, the
Fund's outperformance of the broad market index was largely the result of the
proprietary stock-screening process.
Utilities Series
Utilities Series seeks to provide current income and long-term growth
of income and capital by investing primarily in the equity of companies in the
public utilities industry. A trend of higher interest rates was evident
throughout much of the six months ended January 31, 1994--this scenario was the
key to the Series' disappointing -0.77 percent total return for the period. On
a longer-term perspective, the Series has generated a total return of 12.85
percent for the trailing 12 months ended January 31, 1994, and 14.09 percent
since inception on January 8, 1993.
The equity portfolio holds 44.3 percent of its investments in the
electric utility industry (versus 55.4 percent on July 31, 1993), with the
telephone and natural gas/water sectors accounting for 37.3 percent and 25.8
percent of the balance, respectively. Foreign securities make up 3.8 percent of
the equity portion and enhance the diversification of the portfolio.
Value-Added Market Series
For the six months ended January 31, 1994, Value-Added Market Series
outpaced the market, gaining 11.81 percent versus 8.96 percent for the S&P 500
(the Fund's benchmark). Since inception on February 1, 1993, the Fund has
produced a total return of 12.61 percent, while the S&P 500 has gained 11.78
percent. This strong performance is the result of management's strategy of
investing in substantially all of the stocks included in the S&P 500. Unlike
the Index, the Series equally weights all stock positions, thereby emphasizing
the smaller- to medium-capitalized companies, which historically outperform
larger-capitalized companies.
Throughout 1993, we saw the continuation of a slow but gradual economic
recovery in the U.S., and although markets remained volatile, stock prices
generally continued to advance. As 1993 ended and 1994 began, the market
reacted positively to the economic data being released, even with the
possibility of higher inflation. Looking ahead, based on a historically low
interest-rate environment (despite the recent modest action by the Federal
Reserve Board) and mounting corporate earnings, the equity markets have the
potential to register significant gains in 1994.
Global Equity Series
For the six-month period ended January 31, 1994, Global Equity Series
produced a total return of 9.14 percent.
Six months ago, on July 31, 1993, the Series had net assets of less
than $323,000 and thus was hampered in its ability to become fully invested. As
of January 31, 1994, however, net assets had grown to over $1.2 million. On
January 31, 1994, the Series held 76 stocks in 9 countries, reflecting initial
inflows from fund subscriptions. Seasonal subscriptions at the end of calendar
1993 and in early 1994 will be reflected in additional securities holdings in
12 to 15 countries. The outlook for global markets in 1994 appears bright, as
the U.S. economy continues to expand, with Europe and Japan expected to recover
from recession, and high growth continuing in Southeast Asia.
<PAGE>
Strategist Series
During the six-month period ended January 31, 1994, Strategist Series
provided a total return of 6.30 percent. Net asset value increased during the
period from $9.83 per share to $10.32 per share, and quarterly dividend
disbursements totaled $.125 per share. Total fund assets climbed from $550,989
to $977,931, or 77 percent.
As the Series entered its new fiscal year, its assets were positioned
to reflect an economy beginning a more robust recovery, as well as the
conclusion of a 12-year trend of declining interest rates. In other words, what
a sluggish recovery had failed to provide over the past 10 quarters, we expect
to see in the next two. Thus, the Series' strong performance during the period
under review was the direct result of an accelerated rate of growth enjoyed by
the U.S. economy. With 59 percent of its assets invested in the equity market
and 20 percent of its assets invested in government and corporate bonds, the
Series was ideally positioned to capitalize on the economy's strength.
The Fund continues to overweight the cyclical sectors, specifically
basic materials, industrials, energy, technology and consumer cyclicals.
Holdings that reflected this equity strategy over the six-month period under
review included Chevron Corp., Microsoft Corp., Chrysler Corp. and Phelps
Dodge. The fixed-income portfolio has been invested solely in U.S. government
bonds since its inception on January 7, 1993. This has been a direct result of
the limited funds available for bond investments within our allocation
guidelines.
We appreciate your support of Dean Witter Retirement Series and look
forward to continuing to serve your retirement investing needs in the future.
Very truly yours,
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--LIQUID ASSET SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Principal Description Annualized Yield
Amount (in and on Date of
thousands) Maturity Date Purchase Value
- --------- ------------- --------------- ---------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES (100%)
$654 Federal Home Loan Mortgage Corp.
2/01/94 to 9/14/94...................................................... 3.00 to 3.33% $ 652,813
395 Federal Farm Credit Bank
2/03/94 to 5/16/94...................................................... 3.01 to 3.30 393,490
240 Federal National Mortgage Association
2/02/94 to 3/31/94...................................................... 3.16 to 3.29 239,654
100 Federal Home Loan Banks
3/14/94................................................................. 3.01 99,658
---------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $1,385,615) 1,385,615
---------
TOTAL INVESTMENTS (AMORTIZED COST $1,385,615)(A).......................... 100.0% 1,385,615
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................ 0.0 551
----- ----------
NET ASSETS................................................................ 100.0% $1,386,166
----- ----------
----- ----------
<FN>
- ------------
(a) The aggregate cost for federal tax purposes is the same.
U.S. GOVERNMENT MONEY MARKET SERIES
PORTFOLIO OF INVESTMENTS January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Principal Description Annualized Yield
Amount (in and on Date of
thousands) Maturity Date Purchase Value
- --------- ------------- --------------- ---------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES (99.9%)
$1,610 Federal Home Loan Mortgage Corp.
2/01/94................................................................. 3.05% $1,610,000
95 Federal Farm Credit Bank
2/15/94 to 8/17/94...................................................... 3.01 to 3.25 94,392
20 Federal National Mortgage Association
2/11/94................................................................. 3.19 19,982
----------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $1,724,374) 1,724,374
----------
TOTAL INVESTMENTS (AMORTIZED COST $1,724,374)(A)......................... 99.9% 1,724,374
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES........................... 0.1 986
----- ----------
NET ASSETS................................................................ 100.0% $1,725,360
----- ----------
----- ----------
<FN>
- ------------
(a) The aggregate cost for federal tax purposes is the same.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES--U.S. GOVERNMENT SECURITIES SERIES
PORTFOLIO OF INVESTMENTS January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- -------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (91.2%)
U.S. Treasury Strips (69.3%)
$650 U.S. Treasury Strips..................................................... 0.00% 5/15/94 $ 644,152
100 U.S. Treasury Strips..................................................... 0.00 8/15/96 89,699
500 U.S. Treasury Strips..................................................... 0.00 5/15/97 430,514
800 U.S. Treasury Strips..................................................... 0.00 8/15/98 639,209
----------
TOTAL U.S. TREASURY STRIPS (IDENTIFIED COST $1,796,403)...................................... 1,803,574
----------
U.S. Treasury Note (11.7%)
300 U.S. Treasury Note (IDENTIFIED COST $301,438)............................ 4.625 12/31/94 302,765
----------
U.S. Treasury Bills (a) (10.2%)
195 U.S. Treasury Bill....................................................... 2.815 2/10/94 194,863
70 U.S. Treasury Bill....................................................... 2.865 2/10/94 69,950
----------
TOTAL U.S. TREASURY BILLS (AMORTIZED COST $264,813).......................................... 264,813
----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $2,362,654)........................................... 2,371,152
----------
TOTAL INVESTMENTS (IDENTIFIED COST $2,362,654)(B)........................ 91.2% 2,371,152
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES........................... 8.8 227,678
----- ----------
NET ASSETS............................................................... 100.0% $2,598,830
----- ----------
----- ----------
<FN>
- ------------
(a) U.S. Treasury bills were purchased on a discount basis. The rate shown reflects the bond equivalent interest rate.
(b) The aggregate cost of investments for federal income tax purposes is $2,362,654; the aggregate gross unrealized appreciation
is $9,536 and the aggregate gross unrealized depreciation is $1,038, resulting in net unrealized appreciation of $8,498.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--INTERMEDIATE INCOME SECURITIES SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- ---------- ------ -------- -------
<C> <S> <C> <C> <C>
CORPORATE BONDS (12.5%)
INDUSTRIALS (5.1%)
$ 5 Rhone Poulenc (Yankee)................................................... 7.75 % 1/15/02 $ 5,458
5 RJR Nabisco Inc.......................................................... 8.75 8/15/05 5,190
--------
10,648
--------
TRANSPORTATION (2.5%)
5 Ryder Systems Inc........................................................ 9.375 1/15/98 5,253
--------
UTILITY--ELECTRIC (4.9%)
10 United Illuminating Corp................................................. 6.20 1/15/99 10,088
--------
TOTAL CORPORATE BONDS (IDENTIFIED COST $25,869)........................................................ 25,989
--------
U.S. GOVERNMENT OBLIGATIONS (82.7%)
20 U.S. Treasury Note....................................................... 4.25 11/30/95 20,063
50 U.S. Treasury Note....................................................... 7.25 11/15/96 53,656
5 U.S. Treasury Note....................................................... 6.375 6/30/97 5,280
10 U.S. Treasury Note....................................................... 6.375 7/15/99 10,595
50 U.S. Treasury Note....................................................... 7.875 11/15/99 56,743
10 U.S. Treasury Note....................................................... 6.375 1/15/00 10,598
15 U.S. Treasury Note....................................................... 6.375 8/15/02 15,818
--------
TOTAL U.S. GOVERNMENT OBLIGATIONS (IDENTIFIED COST $172,788)........................................... 172,753
--------
TOTAL INVESTMENTS (IDENTIFIED COST $198,657)(A).......................... 95.2% 198,742
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES........................... 4.8 10,089
----- --------
NET ASSETS............................................................... 100.0% $208,831
----- --------
----- --------
<FN>
- ------------
(a) The aggregate cost for federal income tax purposes is $198,657; the aggregate gross unrealized appreciation is $783 and the
aggregate gross unrealized depreciation is $698, resulting in net unrealized appreciation of $85.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--AMERICAN VALUE SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (105.5%)
AUTO RELATED (8.3%)
150 Allied Signal, Inc................................................................................. $ 11,794
1,610 Chrysler Corp...................................................................................... 99,015
320 Ford Motor Co...................................................................................... 21,440
1,700 General Motors Corp................................................................................ 104,337
455 Magna International, Inc........................................................................... 22,807
580 Mascotech, Inc..................................................................................... 14,718
---------
274,111
---------
BANKS (2.0%)
1,500 Citicorp* ......................................................................................... 65,625
---------
COMMUNICATIONS--EQUIPMENT &
SOFTWARE (8.0%)
800 Cabletron System, Inc.* ........................................................................... 96,100
915 Cisco Systems, Inc.* .............................................................................. 66,109
200 General Instrument Corp.* ......................................................................... 11,750
2,500 Summa Four, Inc.* ................................................................................. 93,125
---------
267,084
---------
COMPUTER SOFTWARE (3.2%)
2,910 Oracle Systems Corp.* ............................................................................. 93,484
272 Sybase, Inc.* ..................................................................................... 12,444
---------
105,928
---------
CONSUMER SERVICES (0.6%)
250 Buenos Aires Embotellara
SA (ADR)+........................................................................................ 10,437
400 General Nutrition Company, Inc.*................................................................... 10,300
---------
20,737
---------
ELECTRICAL EQUIPMENT (2.4%)
740 General Electric Co................................................................................ 79,735
---------
ELECTRONICS--COMPONENTS (4.9%)
1,045 DSC Communications Corp.* ......................................................................... 62,439
1,500 Newbridge Network Corp.* .......................................................................... 100,125
---------
162,564
---------
ELECTRONICS--SEMICONDUCTORS (7.7%)
350 Intel Corp......................................................................................... 22,838
2,300 Linear Technology Corp............................................................................. 98,900
2,000 Maxim Integrated Products, Inc.*................................................................... 98,500
200 Motorola, Inc...................................................................................... 19,700
226 Texas Instruments, Inc............................................................................. 15,876
---------
255,814
---------
ENERGY (3.2%)
2,000 Burlington Resources, Inc.......................................................................... 96,250
100 Chevron Corp....................................................................................... 9,337
---------
105,587
---------
ENTERTAINMENT (1.0%)
300 Electronic Arts, Inc.*............................................................................. 8,550
180 Gaylord Entertainment Co. (Class A)................................................................ 5,085
450 Time Warner, Inc................................................................................... 18,000
---------
31,635
---------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
ENTERTAINMENT/GAMING (5.2%)
2,700 Mirage Resorts* ................................................................................... $ 67,162
270 President Riverboat Casinos* ...................................................................... 4,860
2,000 Promus Cos, Inc.* ................................................................................. 101,250
---------
173,272
---------
FINANCIAL--MISCELLANEOUS (3.5%)
1,200 Federal National Mortgage
Association...................................................................................... 104,850
300 First USA, Inc..................................................................................... 9,937
---------
114,787
---------
FOREST PRODUCTS (3.2%)
1,400 Georgia Pacific Corp............................................................................... 105,350
---------
HEALTH EQUIPMENT AND SERVICES (4.9%)
1,125 Columbia Healthcare Corp........................................................................... 42,609
350 Pyxis Corp.* ...................................................................................... 25,463
1,100 United Healthcare Corp............................................................................. 94,050
---------
162,122
---------
HOTELS/MOTELS (6.3%)
1,800 Hospitality Franchise System* ..................................................................... 99,675
450 La Quinta Inns, Inc................................................................................ 13,725
3,300 Marriot International, Inc......................................................................... 96,937
---------
210,337
---------
HOUSING & HOME FURNISHINGS (7.6%)
397 Bombay Company, Inc.* ............................................................................. 10,868
3,100 Ethan Allen Interiors, Inc.* ...................................................................... 97,263
2,800 Heilig-Meyers...................................................................................... 98,700
650 Whirlpool Corp..................................................................................... 43,956
---------
250,787
---------
INDUSTRIALS (7.5%)
1,100 Caterpillar, Inc................................................................................... 114,537
500 Empresas Ica Sociedad SA (ADR)+.................................................................... 15,875
150 Grupo Tribasa SA De (ADR)*+........................................................................ 5,531
2,300 Trinity Industries, Inc............................................................................ 100,913
300 Wabash National Corp............................................................................... 11,550
---------
248,406
---------
MEDIA GROUP (6.1%)
34 Capital Cities/ABC................................................................................. 22,270
2,400 Clear Channel Communication, Inc.*................................................................. 95,700
900 Grupo Televisa* ................................................................................... 63,900
375 Infinity Broadcasting Corp.* ...................................................................... 12,187
350 Tele Communications, Inc. (Class A)*............................................................... 9,538
---------
203,595
---------
METALS (0.3%)
285 Huntco Inc. (Class A).............................................................................. 10,474
---------
PAPER AND FOREST PRODUCTS (1.4%)
700 Scott Paper........................................................................................ 32,725
250 Weyerhaeuser Co.................................................................................... 12,219
---------
44,944
---------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--AMERICAN VALUE SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
PUBLISHING (1.4%)
750 Tribune Co......................................................................................... $ 45,094
---------
RETAIL (0.9%)
600 Penney (J.C.)...................................................................................... 31,425
---------
RETAIL--SPECIALTY (1.1%)
100 Gymboree Co.* ..................................................................................... 3,850
900 Sunglass Hut International......................................................................... 34,425
---------
38,275
---------
SEMICONDUCTORS (4.0%)
570 Applied Materials, Inc.* .......................................................................... 25,080
3,000 Lam Research Corp.* ............................................................................... 106,500
---------
131,580
---------
TELECOMMUNICATIONS (3.5%)
581 MCI Communications................................................................................. 15,978
824 Millicom International Cellular SA*................................................................ 17,097
650 Telefonos De Mexico SA (ADR)+...................................................................... 48,019
400 Vodafone Group PLC (ADR)+.......................................................................... 35,400
---------
116,494
---------
TRANSPORTATION (7.3%)
1,335 CSX Corp........................................................................................... 122,486
1,650 Conrail, Inc....................................................................................... 107,250
150 Federal Express* .................................................................................. 11,400
---------
241,136
---------
TOTAL COMMON STOCKS
(IDENTIFIED COST $3,405,858)..................................................................... 3,496,898
---------
SHORT-TERM INVESTMENT (A) (8.3%)
U.S. GOVERNMENT AGENCY (8.3%)
$ 276 Federal Home Loan Mortgage Corp.,
3.05% due 2/1/94 (Amortized Cost
$276,000)........................................................................................ 276,000
---------
TOTAL INVESTMENTS (IDENTIFIED
COST $3,681,858)(B)................................................................................ 113.8 % 3,772,898
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS................................................................................... (13.8) (456,342)
----- ----------
NET ASSETS.......................................................................................... 100.0 % $3,316,556
----- ----------
----- ----------
<FN>
- ------------
* Non-income producing security.
+ American Depository Receipt.
(a) U.S. Government Agency was purchased on a discount basis. The rate shown has been adjusted to reflect a bond equivalent yield.
(b) The aggregate cost for federal income tax purposes is $3,681,858; the aggregate gross unrealized appreciation is $125,659 and
the aggregate gross unrealized depreciation is $34,619, resulting in net unrealized appreciation of $91,040.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--CAPITAL GROWTH SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (98.4%)
ADVERTISING (1.8%)
100 Interpublic Group of Cos., Inc..................................................................... $ 3,175
--------
APPAREL (1.9%)
100 Cintas Corp........................................................................................ 3,350
--------
AUTOMOTIVE (2.1%)
100 Genuine Parts...................................................................................... 3,875
--------
BANKING (8.1%)
100 Banc One Corp...................................................................................... 3,750
200 Central Fidelity Banks, Inc........................................................................ 5,750
100 Fifth Third Bancorp................................................................................ 5,025
--------
14,525
--------
BEVERAGES--SOFT DRINKS (2.7%)
100 Anheuser-Busch Cos., Inc........................................................................... 4,900
--------
BUSINESS SYSTEMS (1.7%)
100 General Motors Corp., Class "E".................................................................... 3,000
--------
CHEMICALS--SPECIALITY (4.7%)
100 Nalco Chemical..................................................................................... 3,500
100 Sigma-Aldrich, Inc................................................................................. 4,950
--------
8,450
--------
COMPUTER SERVICES (2.9%)
100 Automatic Data Processing, Inc..................................................................... 5,237
--------
CONSUMER SERVICES (2.4%)
100 Block (H & R), Inc................................................................................. 4,387
--------
COSMETICS (1.6%)
75 International Flavor/Fragrance..................................................................... 2,841
--------
DISTRIBUTION (1.5%)
100 Sysco Corp......................................................................................... 2,725
--------
DRUGS & HEALTHCARE (6.4%)
100 Abbott Laboratories................................................................................ 2,950
103 Block Drugs, Inc., Class "A"....................................................................... 3,476
100 Forest Labs, Inc.*................................................................................. 5,088
--------
11,514
--------
ELECTRICAL EQUIPMENT (3.5%)
100 Grainger (W.W.) Inc................................................................................ 6,263
--------
ELECTRONICS (3.0%)
100 Dionex Corp.*...................................................................................... 3,525
100 EG & G, Inc........................................................................................ 1,900
--------
5,425
--------
ENTERTAINMENT (2.1%)
100 Circus Circus Enterprise........................................................................... 3,700
--------
FOODS (12.8%)
200 ConAgra, Inc....................................................................................... 5,275
200 Smucker (J.M.) Co., Class "A"...................................................................... 4,850
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
50 Tootsie Roll Inds. Inc............................................................................. $ 3,719
200 Tyson Foods, Inc., Class "A"....................................................................... 4,525
100 Wrigley (W.W.), Jr., Class "A"..................................................................... 4,512
--------
22,881
--------
HOUSEHOLD PRODUCTS (1.8%)
100 Rubbermaid, Inc.................................................................................... 3,150
--------
INSURANCE (1.8%)
200 Crawford & Co., Class "B".......................................................................... 3,200
--------
MACHINERY--DIVERSIFIED (3.6%)
150 Thermo Electron Co.*............................................................................... 6,431
--------
MANUFACTURED HOUSING (3.5%)
250 Clayton Homes, Inc.* .............................................................................. 6,344
--------
MANUFACTURING (1.5%)
100 Federal Signal Corp................................................................................ 2,688
--------
MEDICAL EQUIPMENT (3.9%)
200 Stryker Corp....................................................................................... 7,000
--------
MEDICAL PRODUCTS & SUPPLIES (2.3%)
400 Biomet, Inc.*...................................................................................... 4,150
--------
RESTAURANTS (5.2%)
200 International Dairy Queen, Class "A"*.............................................................. 3,200
100 McDonald's Corp.................................................................................... 6,075
--------
9,275
--------
RETAIL (1.5%)
100 Wal-Mart Stores, Class "A"......................................................................... 2,650
--------
RETAIL--DEPARTMENT STORES (2.0%)
100 Dillard Dept. Stores, Class "A".................................................................... 3,588
--------
RETAIL--DRUG STORES (2.2%)
100 Walgreen Co........................................................................................ 3,900
--------
SUPERMARKETS (3.0%)
200 Albertson's, Inc................................................................................... 5,350
--------
TOBACCO (4.9%)
50 Philip Morris Co., Inc............................................................................. 3,012
200 UST, Inc........................................................................................... 5,700
--------
8,712
--------
UTILITIES (2.0%)
208 Citizens Utilities Co. of Delaware,
Series "A"*...................................................................................... 3,537
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $175,301)....................................................................... 176,223
--------
TOTAL INVESTMENTS (IDENTIFIED
COST $175,301)(A).................................................................................... 98.4% 176,223
CASH AND OTHER ASSETS
IN EXCESS OF LIABILITIES............................................................................. 1.6 2,898
----- --------
NET ASSETS............................................................................................. 100.0% $179,121
----- --------
----- --------
<FN>
- ------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is $175,301; the aggregate gross unrealized appreciation is $11,224
and the aggregate gross unrealized depreciation is $10,302, resulting in net unrealized appreciation of $922.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--DIVIDEND GROWTH SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (97.3%)
AEROSPACE & DEFENSE (4.6%)
5,900 Raytheon Co........................................................................................ $ 399,725
---------
ALUMINUM (4.2%)
4,600 Aluminum Co. of America............................................................................ 363,975
---------
AUTOMOBILES (4.2%)
5,500 Ford Motor Co...................................................................................... 368,500
---------
BANKING (4.3%)
4,500 Bankers Trust N.Y. Corp............................................................................ 377,438
---------
CHEMICALS (4.4%)
6,800 duPont (E.I.) de Nemours & Co...................................................................... 380,800
---------
CONGLOMERATES (8.5%)
3,300 Minnesota Mining & Manufacturing
Co............................................................................................... 353,925
6,800 Tenneco, Inc....................................................................................... 391,000
---------
744,925
---------
DRUGS (8.5%)
12,700 Abbott Laboratories, Inc........................................................................... 374,650
6,400 Bristol-Myers Squibb Co............................................................................ 370,400
---------
745,050
---------
ELECTRICAL APPLIANCES (4.3%)
3,500 General Electric Co................................................................................ 377,125
---------
FOODS & BEVERAGES (13.0%)
9,200 PepsiCo, Inc....................................................................................... 371,450
5,800 Quaker Oats Co..................................................................................... 382,800
3,200 Unilever N.V., N.Y. (ADR)+......................................................................... 380,400
---------
1,134,650
---------
FOREST & PAPER PRODUCTS (4.3%)
7,700 Weyerhaeuser Co.................................................................................... 376,337
---------
MISCELLANEOUS (0.6%)
1,225 Eastman Chemical Co................................................................................ 53,594
---------
NATURAL GAS (4.2%)
11,200 Enron Corp......................................................................................... 368,200
---------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
OFFICE EQUIPMENT & SUPPLIES (4.4%)
8,500 Pitney-Bowes, Inc.................................................................................. $ 381,437
---------
OIL (8.6%)
6,900 Amoco Corp......................................................................................... 370,875
5,700 Exxon Corp......................................................................................... 379,050
---------
749,925
---------
PHOTOGRAPHY (2.5%)
4,900 Eastman Kodak Co................................................................................... 216,213
---------
RAILROADS (3.9%)
3,700 CSX Corp........................................................................................... 339,475
---------
RETAIL (4.3%)
19,000 K-Mart Corp........................................................................................ 372,875
---------
TELECOMMUNICATIONS (4.2%)
10,700 GTE Corp........................................................................................... 367,812
---------
UTILITIES--ELECTRIC (4.3%)
8,300 Houston Industries, Inc............................................................................ 378,688
---------
TOTAL COMMON STOCKS
(IDENTIFIED COST $8,027,302)..................................................................... 8,496,744
---------
Principal
Amount (in
thousands)
- ---------
SHORT-TERM INVESTMENT (A)(8.8%)
U.S. GOVERNMENT AGENCY (8.8%)
$ 772 Federal Home Loan Mortgage Corp.
3.05% due 2/1/94 (Amortized Cost
$772,000)........................................................................................ 772,000
---------
TOTAL INVESTMENTS (IDENTIFIED
COST $8,799,302)(B)................................................................................ 106.1% 9,268,744
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS................................................................................... (6.1) (530,215)
----- ----------
NET ASSETS........................................................................................... 100.0% $8,738,529
----- ----------
----- ----------
<FN>
- ------------
+ American Depository Receipt.
(a) U.S. Government agency was purchased on a discount basis. The rate shown reflects a bond equivalent yield.
(b) The aggregate cost for federal income tax purposes is $8,800,710; the aggregate gross unrealized appreciation is $570,690
and the aggregate gross unrealized depreciation is $102,656, resulting in net unrealized appreciation of $468,034.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--UTILITIES SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (81.6%)
NATURAL GAS (9.8%)
1,500 Enron Corp......................................................................................... $ 49,313
1,500 MCN Corp........................................................................................... 55,312
2,500 Pacific Enterprises................................................................................ 56,250
2,000 Questar Corp....................................................................................... 64,750
2,000 The Williams Companies............................................................................. 52,250
--------
277,875
--------
TELEPHONE/TELECOMMUNICATIONS (27.5%)
1,000 American Telephone & Telegraph
Company.......................................................................................... 56,750
700 BellSouth Corp..................................................................................... 43,050
2,200 Cable & Wireless PLC-ADR+.......................................................................... 54,450
1,500 Century Telephone Enterprises, Inc................................................................. 40,875
1,500 Comsat Corp........................................................................................ 40,688
1,500 GTE Corp........................................................................................... 51,562
2,000 MCI Communications Corp............................................................................ 55,000
2,300 Pactel Corp........................................................................................ 58,075
1,500 Rochester Telephone Corp........................................................................... 65,250
1,800 Southern New England
Telecommunications Corp.......................................................................... 61,650
1,500 Southwestern Bell Corp............................................................................. 62,813
1,300 Sprint Corp........................................................................................ 47,125
1,000 Telephone & Data Systems, Inc...................................................................... 49,375
1,000 Time Warner Inc.................................................................................... 40,000
600 Vodafone Group PLC-ADR+............................................................................ 53,100
--------
779,763
--------
UTILITIES-ELECTRIC (44.3%)
2,000 CMS Energy Corp.................................................................................... 48,500
1,500 Central & South West Corp.......................................................................... 44,625
2,200 Commonwealth Edison Company........................................................................ 62,425
2,500 DPL, Inc........................................................................................... 53,125
1,700 DQE, Inc........................................................................................... 56,525
1,500 Detroit Edison Company............................................................................. 44,437
2,000 Eastern Utilities Association...................................................................... 54,000
1,900 Entergy Corp....................................................................................... 70,775
1,000 Florida Progress Corp.............................................................................. 31,375
1,500 General Public Utilities Corp...................................................................... 45,750
2,200 Illinois Power Company............................................................................. 47,850
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
2,000 Montana Power Company.............................................................................. $ 50,000
1,500 NIPSCO Industries, Inc............................................................................. 48,000
2,100 Northeast Utilities................................................................................ 53,025
1,500 Pacific Gas & Electric Company..................................................................... 50,812
2,800 Pacificorp......................................................................................... 52,500
2,200 Peco Energy Co..................................................................................... 63,525
2,500 Pinnacle West Capital Corp......................................................................... 55,938
2,000 Public Service Co. New Mexico*..................................................................... 26,500
1,500 SCEcorp............................................................................................ 29,250
1,500 Texas Utilities Co................................................................................. 57,938
1,300 Union Electric Company............................................................................. 50,050
3,000 United Water Resources, Inc........................................................................ 43,875
2,000 Utilicorp United, Inc.............................................................................. 63,250
1,500 Western Resources, Inc............................................................................. 50,062
---------
1,254,112
---------
TOTAL COMMON STOCKS
(IDENTIFIED COST $2,257,006)..................................................................... 2,311,750
---------
<CAPTION>
Principal
Amount (in
thousands)
- ---------
<S> <C>
SHORT-TERM INVESTMENTS (A)(25.8%)
U.S. GOVERNMENT AGENCIES (25.8%)
$170 Federal Farm Credit Bank
3.049% due 2/15/94............................................................................... 169,799
130 Federal Home Loan Banks
2.962% due 2/3/94................................................................................ 129,979
430 Federal Home Loan Banks
2.982% due 2/7/94................................................................................ 429,786
---------
TOTAL U.S. GOVERNMENT
AGENCIES
(AMORTIZED COST $729,564)........................................................................ 729,564
---------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $2,986,570)(B)................................................................................ 107.4% 3,041,314
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS................................................................................... (7.4) (209,231)
----- ----------
NET ASSETS........................................................................................... 100.0% $2,832,083
----- ----------
----- ----------
<FN>
- ------------
+ American Depository Receipt.
* Non-income producing security.
(a) U.S. Government agencies were purchased on a discount basis. The rates shown reflect bond equivalent interest rates.
(b) The aggregate cost for federal income tax purposes is $2,986,570; the aggregate gross unrealized appreciation is $86,936
and the aggregate gross unrealized depreciation is $32,192, resulting in net unrealized appreciation of $54,744.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (96.2%)
AEROSPACE & DEFENSE (2.0%)
200 Boeing Co.......................................................................................... $ 8,650
81 General Dynamics Corp.............................................................................. 7,462
225 Grumman Corp....................................................................................... 9,197
150 Lockheed Corp...................................................................................... 9,731
200 Martin Marietta Corp............................................................................... 8,975
79 McDonnell Douglas Corp............................................................................. 9,026
225 Northrop Corp...................................................................................... 8,747
150 Raytheon Co........................................................................................ 10,163
260 Rockwell International Corp........................................................................ 10,400
137 United Technologies Corp........................................................................... 9,230
--------
91,581
--------
AIRLINES (0.7%)
130 AMR Corp.*......................................................................................... 9,344
149 Delta Air Lines, Inc............................................................................... 8,344
59 UAL Corp.*......................................................................................... 8,673
600 USAir Group, Inc.*................................................................................. 8,850
--------
35,211
--------
ALUMINUM (0.7%)
432 Alcan Aluminium, Ltd............................................................................... 10,584
129 Aluminum Co. of America............................................................................ 10,207
200 Reynolds Metals Co................................................................................. 10,675
--------
31,466
--------
AUTO PARTS--AFTER MARKET (0.9%)
349 Cooper Tire & Rubber Co............................................................................ 8,900
231 Echlin, Inc........................................................................................ 8,027
221 Genuine Parts Co................................................................................... 8,564
200 Goodyear Tire & Rubber Co.......................................................................... 9,675
451 SPX Corp........................................................................................... 7,723
--------
42,889
--------
AUTOMOBILES (0.7%)
144 Chrysler Corp...................................................................................... 8,856
140 Ford Motor Co...................................................................................... 9,380
200 General Motors Corp................................................................................ 12,275
--------
30,511
--------
BANKS--MONEY CENTER (1.2%)
117 Bankers Trust N.Y. Corp............................................................................ 9,813
265 Chase Manhattan Corp............................................................................... 9,573
223 Chemical Banking Corp.............................................................................. 8,809
212 Citicorp*.......................................................................................... 9,275
200 First Chicago Corp................................................................................. 9,400
118 Morgan (J.P.) & Co., Inc........................................................................... 8,467
--------
55,337
--------
BANKS--OTHER MAJOR (0.6%)
200 BankAmerica Corp................................................................................... 9,300
380 Bank of Boston Corp................................................................................ 9,738
135 Mellon Bank Corp................................................................................... 7,543
--------
26,581
--------
BANKS--REGIONAL (3.4%)
224 Bank One Corp...................................................................................... 8,400
221 Barnett Banks of Florida, Inc...................................................................... 9,337
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
300 Boatmens Bancshares, Inc........................................................................... $ 8,700
321 CoreStates Financial Corp.......................................................................... 8,667
200 First Fidelity Bancorp............................................................................. 8,825
156 First Interstate Bancorp........................................................................... 10,940
219 First Union Corp................................................................................... 9,527
290 Fleet Financial Group, Inc......................................................................... 10,186
200 NationsBank Corp................................................................................... 10,150
273 NBD Bancorp, Inc................................................................................... 8,122
352 Norwest Corp....................................................................................... 9,284
321 PNC Financial Corp................................................................................. 9,510
349 Shawmut National Corp.............................................................................. 8,332
200 SunTrust Banks, Inc................................................................................ 9,225
342 US Bancorp Oregon.................................................................................. 8,678
240 Wachovia Corp...................................................................................... 8,370
81 Wells Fargo & Co................................................................................... 11,107
--------
157,360
--------
BEVERAGES--ALCOHOLIC (0.8%)
184 Anheuser--Busch Cos., Inc.......................................................................... 9,016
115 Brown--Forman Corp. (Class B)...................................................................... 9,919
500 Coors (Adolph) Co.................................................................................. 7,813
265 Seagram Co., Ltd................................................................................... 8,148
--------
34,896
--------
BEVERAGES--SOFT DRINKS (0.4%)
200 Coca Cola Co. (The)................................................................................ 8,175
235 PepsiCo, Inc....................................................................................... 9,488
--------
17,663
--------
BROADCAST MEDIA (0.7%)
14 Capital Cities/ABC, Inc............................................................................ 9,170
25 CBS, Inc........................................................................................... 7,650
265 Comcast Corp. Special (Class A).................................................................... 8,381
320 Telecommunications, Inc.*.......................................................................... 8,720
--------
33,921
--------
BUILDING MATERIALS (0.6%)
220 Masco Corp......................................................................................... 8,553
200 Owens-Corning Fiberglass Corp.*.................................................................... 9,025
241 Sherwin Williams Co................................................................................ 8,224
--------
25,802
--------
CHEMICALS (1.9%)
200 Air Products & Chemicals, Inc...................................................................... 9,925
24 Cytec Industries, Inc.............................................................................. 392
161 Dow Chemical Co.................................................................................... 10,224
184 duPont (E.I.) Nemours & Co......................................................................... 10,304
200 Goodrich (B.F.) Co................................................................................. 8,350
75 Hercules, Inc...................................................................................... 8,213
129 Monsanto Co........................................................................................ 9,948
482 Praxair, Inc....................................................................................... 9,037
170 Rohm & Haas Co..................................................................................... 9,711
377 Union Carbide Corp................................................................................. 9,614
--------
85,718
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
CHEMICALS--DIVERSIFIED (1.0%)
294 Avery Dennison Corp................................................................................ $ 8,379
269 Engelhard Corp..................................................................................... 7,061
800 First Mississippi Corp............................................................................. 12,100
200 FMC Corp.*......................................................................................... 9,650
129 PPG Industries, Inc................................................................................ 10,175
--------
47,365
--------
CHEMICALS--SPECIALTY (1.0%)
469 Ethyl Corp......................................................................................... 8,618
215 Grace (W.R.) Co.................................................................................... 9,809
110 Great Lakes Chemical Corp.......................................................................... 8,676
75 Morton International, Inc.......................................................................... 8,052
254 Nalco Chemical Co.................................................................................. 8,890
--------
44,045
--------
COMMERCIAL SERVICES (1.0%)
380 Ecolab, Inc. ..................................................................................... 8,693
1,300 National Educational Corp. ....................................................................... 8,613
374 National Service Industries, Inc.* ............................................................... 10,098
356 Ogden Corp. ...................................................................................... 8,277
624 Safety-Kleen Corp. ............................................................................... 10,607
--------
46,288
--------
COMMUNICATIONS--EQUIPMENT &
MANUFACTURERS (0.9%)
214 Andrew Corp.* .................................................................................... 9,470
150 DSC Communications Corp.* ........................................................................ 8,963
900 M/A-Com., Inc.* .................................................................................. 7,538
300 Northern Telecom, Ltd. ........................................................................... 9,750
275 Scientific-Atlanta, Inc. ......................................................................... 7,803
--------
43,524
--------
COMPUTER SOFTWARE & SERVICES (1.8%)
200 Autodesk, Inc. ................................................................................... 10,350
155 Automatic Data Processing, Inc. .................................................................. 8,118
500 Ceridian Corp.* .................................................................................. 11,375
230 Computer Associates Int'l., Inc. ................................................................. 8,481
261 Computer Sciences Corp.* ......................................................................... 9,005
158 Lotus Development Corp.* ......................................................................... 9,164
333 Novell, Inc.* .................................................................................... 7,493
254 Oracle Systems Corp.* ............................................................................ 8,160
376 Shared Medical Systems Corp. ..................................................................... 9,211
--------
81,357
--------
COMPUTERS--SYSTEMS (2.2%)
1,500 Amdahl Corp. ..................................................................................... 10,687
237 Apple Computer, Inc. ............................................................................. 7,762
111 COMPAQ Computer Corp.* ........................................................................... 9,545
326 Cray Research, Inc.* ............................................................................. 10,228
1,000 Data General Corp.* .............................................................................. 8,250
270 Digital Equipment Corp.* ......................................................................... 8,168
900 Intergraph Corp.* ................................................................................ 10,013
150 International Business Machines Corp.............................................................. 8,513
340 Sun Microsystems, Inc.* .......................................................................... 9,010
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
800 Tandem Computers, Inc.* .......................................................................... $ 10,800
667 Unisys Corp.* .................................................................................... 8,838
--------
101,814
--------
CONGLOMERATES (0.9%)
100 ITT Corp. ........................................................................................ 9,838
111 Litton Industries, Inc.* ......................................................................... 7,604
300 Teledyne Inc. .................................................................................... 6,900
171 Tenneco, Inc. .................................................................................... 9,833
145 Textron, Inc. .................................................................................... 8,572
--------
42,747
--------
CONTAINERS--METALS & GLASS (0.4%)
300 Ball Corp. ....................................................................................... 7,913
223 Crown Cork & Seal, Inc.* ......................................................................... 8,641
--------
16,554
--------
CONTAINERS--PAPER (0.6%)
412 Bemis Company, Inc. .............................................................................. 9,785
600 Stone Container Corp.* ........................................................................... 9,900
173 Temple-Inland, Inc. .............................................................................. 9,083
--------
28,768
--------
COSMETICS (0.8%)
424 Alberto-Culver Co. ............................................................................... 9,805
175 Avon Products, Inc. .............................................................................. 9,559
149 Gillette Co. (The) ............................................................................... 9,052
231 International Flavors & Fragrances, Inc........................................................... 8,749
--------
37,165
--------
DISTRIBUTORS (CONSUMER PRODUCTS) (1.0%)
400 Fleming Cos., Inc. ............................................................................... 9,800
136 McKesson Corp. ................................................................................... 7,939
550 National Intergroup, Inc.* ....................................................................... 8,869
267 SuperValu, Inc. .................................................................................. 10,413
300 Sysco Corp. ...................................................................................... 8,175
--------
45,196
--------
ELECTRICAL EQUIPMENT (1.6%)
133 AMP, Inc. ........................................................................................ 8,313
157 Emerson Electric Co. ............................................................................. 9,616
100 General Electric Co. ............................................................................. 10,775
149 Grainger (W.W.), Inc. ............................................................................ 9,331
254 Honeywell, Inc. .................................................................................. 8,287
240 Raychem Corp. .................................................................................... 8,760
132 Thomas & Betts Corp. ............................................................................. 8,349
581 Westinghouse Electric Corp. ...................................................................... 8,134
--------
71,565
--------
ELECTRONICS--DEFENSE (0.6%)
423 EG & G, Inc. ...................................................................................... 8,037
200 E-Systems, Inc..................................................................................... 9,000
268 Loral Corp......................................................................................... 10,687
--------
27,724
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
ELECTRONICS--INSTRUMENTATION (0.7%)
121 Hewlett-Packard Co................................................................................. $ 10,330
221 Perkin-Elmer Corp.................................................................................. 8,647
400 Tektronix, Inc. ................................................................................... 11,300
--------
30,277
--------
ELECTRONICS--SEMICONDUCTERS (1.0%)
448 Advanced Micro Devices, Inc.*...................................................................... 9,184
135 Intel Corp. ....................................................................................... 8,809
75 Motorola, Inc. .................................................................................... 7,388
500 National Semiconductor Corp.* ..................................................................... 9,000
146 Texas Instruments, Inc............................................................................. 10,256
--------
44,637
--------
ENGINEERING & CONSTRUCTION (0.6%)
216 Fluor Corp......................................................................................... 9,693
226 Foster Wheeler Corp................................................................................ 8,871
372 Morrison Knudsen Co., Inc. ........................................................................ 9,765
--------
28,329
--------
ENTERTAINMENT (0.5%)
177 Disney (Walt) Co. ................................................................................. 8,363
212 King World Productions, Inc.*...................................................................... 8,745
169 Time Warner, Inc. ................................................................................. 6,760
--------
23,868
--------
FINANCIAL--MISCELLANEOUS (2.0%)
300 American Express Co. .............................................................................. 9,825
324 American General Corp.............................................................................. 9,275
232 Dean Witter, Discover & Co......................................................................... 8,903
175 Federal Home Loan Mortgage Corp.................................................................... 10,193
115 Federal National Mortgage Association.............................................................. 10,047
274 MBNA Corp.......................................................................................... 9,522
200 Merrill Lynch & Co., Inc........................................................................... 8,950
174 Salomon, Inc....................................................................................... 8,570
160 Transamerica Corp.................................................................................. 8,760
224 Travelers, Inc. ................................................................................... 9,436
--------
93,481
--------
FOODS (2.7%)
339 Archer-Daniels-Midland Co.......................................................................... 8,983
500 Borden, Inc........................................................................................ 7,688
200 Campbell Soup Co. ................................................................................. 7,750
311 ConAgra, Inc. ..................................................................................... 8,203
189 CPC International, Inc............................................................................. 9,236
133 General Mills Inc. ................................................................................ 7,897
313 Gerber Products Co. ............................................................................... 8,960
221 Heinz, (H.J.) Co. ................................................................................. 7,680
166 Hershey Foods Corp................................................................................. 8,010
161 Kellogg Co. ....................................................................................... 8,654
500 Pet, Inc........................................................................................... 9,250
127 Quaker Oats Co. (The).............................................................................. 8,381
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
200 Ralston-Ralston Purina Corp........................................................................ $ 8,800
337 Sara Lee Corp...................................................................................... 7,414
173 Wrigley, (Wm.), Jr., Co. (Class A)................................................................. 7,807
--------
124,713
--------
GOLD MINING (0.9%)
300 American Barrick Resource Corp..................................................................... 8,363
600 Echo Bay Mines, Ltd................................................................................ 7,950
500 Homestake Mining Co................................................................................ 11,000
141 Newmont Mining Corp................................................................................ 7,561
313 Placer Dome, Inc................................................................................... 7,942
--------
42,816
--------
HARDWARE & TOOLS (0.6%)
400 Black & Decker Corp................................................................................ 8,450
223 Snap-On Tools Corp. ............................................................................... 9,561
175 Stanley Works ..................................................................................... 7,700
--------
25,711
--------
HEALTH CARE--DIVERSIFIED (1.3%)
300 Abbott Laboratories................................................................................ 8,850
170 American Cyanamid Co............................................................................... 8,564
130 American Home Products Corp........................................................................ 8,255
137 Bristol-Myers Squibb Co............................................................................ 7,929
254 IMCERA Group, Inc.................................................................................. 9,620
200 Johnson & Johnson.................................................................................. 8,475
121 Warner-Lambert Co.................................................................................. 7,880
--------
59,573
--------
HEALTH CARE--DRUGS (1.1%)
163 Lilly (Eli) & Co................................................................................... 9,760
268 Merck & Co., Inc................................................................................... 9,782
129 Pfizer, Inc........................................................................................ 8,336
119 Schering-Plough Corp............................................................................... 7,497
459 Syntex Corp., Inc.................................................................................. 7,056
252 Upjohn & Co........................................................................................ 7,560
--------
49,991
--------
HEALTH CARE--MISCELLANEOUS (0.8%)
300 ALZA Corp.......................................................................................... 8,138
200 Amgen, Inc......................................................................................... 9,700
700 Beverly Enterprises, Inc........................................................................... 9,100
345 Manor Care, Inc.................................................................................... 9,616
--------
36,554
--------
HEAVY DUTY TRUCKS & PARTS (0.9%)
150 Cummins Engine, Inc................................................................................ 8,288
129 Dana Corp.......................................................................................... 7,530
148 Eaton Corp......................................................................................... 8,436
350 Navistar International Corp.*...................................................................... 9,100
115 PACCAR, Inc........................................................................................ 6,929
--------
40,283
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
HOME BUILDING (0.5%)
179 Centex Corp....................................................................................... $ 7,921
400 Kaufman & Broad Home Corp......................................................................... 9,300
215 Pulte Corp........................................................................................ 7,471
--------
24,692
--------
HOSPITAL MANAGEMENT (0.7%)
312 Columbia Healthcare Corp.......................................................................... 11,817
550 Community Psychiatric Centers..................................................................... 9,487
674 National Medical Enterprises, Inc................................................................. 10,700
--------
32,004
--------
HOTELS/MOTELS (0.7%)
185 Hilton Hotels Corp................................................................................ 11,840
300 Marriott International, Inc....................................................................... 8,813
181 Promus Cos., Inc.*................................................................................ 9,163
--------
29,816
--------
HOUSEHOLD FURNISHINGS & APPLIANCES (1.2%)
200 Armstrong World Industries, Inc................................................................... 11,250
231 Bassett Furniture, Inc............................................................................ 7,854
1,400 Fedders Corp.*.................................................................................... 10,150
546 Maytag Corp....................................................................................... 10,442
120 Whirlpool Corp.................................................................................... 8,115
1,000 Zenith Electronics*............................................................................... 7,875
--------
55,686
--------
HOUSEHOLD PRODUCTS (0.8%)
154 Clorox Co......................................................................................... 7,950
137 Colgate-Palmolive Co.............................................................................. 8,169
168 Procter & Gamble Co............................................................................... 9,996
73 Unilever N.V. NY (ADR)+........................................................................... 8,678
--------
34,793
--------
HOUSEWARES (0.5%)
217 Newell Co......................................................................................... 9,086
100 Premark International, Inc........................................................................ 8,613
225 Rubbermaid, Inc................................................................................... 7,087
--------
24,786
--------
INSURANCE BROKERS (0.4%)
373 Alexander & Alexander Services, Inc............................................................... 7,833
111 Marsh & McLennan Cos., Inc........................................................................ 9,130
--------
16,963
--------
LEISURE TIME/EQUIPMENT (0.9%)
1,000 Bally Manufacturing Corp.*........................................................................ 8,875
529 Brunswick Corp.................................................................................... 10,316
700 Handleman Co...................................................................................... 9,625
470 Outboard Marine Corp.............................................................................. 11,339
--------
40,155
--------
LIFE INSURANCE (1.0%)
232 Capital Holding Corp.............................................................................. 8,410
179 Jefferson Pilot Corp.............................................................................. 8,279
210 Lincoln National Corp............................................................................. 8,925
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
200 Torchmark Corp.................................................................................... $ 9,525
215 US Life Corp...................................................................................... 8,680
--------
43,819
--------
MACHINERY TOOLS (0.4%)
319 Cincinnati Milacron, Inc.......................................................................... 8,095
323 Giddings & Lewis, Inc............................................................................. 8,721
--------
16,816
--------
MACHINERY--DIVERSIFIED (1.5%)
100 Briggs & Stratton Corp............................................................................ 8,650
82 Caterpillar, Inc.................................................................................. 8,538
146 Clark Equipment Co.*.............................................................................. 8,505
141 Cooper Industries, Inc............................................................................ 5,852
125 Deere & Co........................................................................................ 10,063
331 Harnischfeger Industries, Inc..................................................................... 7,985
200 Ingersoll Rand Co................................................................................. 7,650
225 Varity Corp.*..................................................................................... 10,124
--------
67,367
--------
MANUFACTURED HOUSING (0.4%)
333 Fleetwood Enterprises, Inc........................................................................ 8,367
429 Skyline Corp...................................................................................... 8,901
--------
17,268
--------
MANUFACTURING--DIVERSIFIED INDUSTRIES (2.2%)
300 Crane Co.......................................................................................... 8,025
152 Dover Corp........................................................................................ 9,063
222 Illinois Tool Works, Inc.......................................................................... 9,435
138 Johnson Controls Inc.............................................................................. 8,108
259 Millipore Corp.................................................................................... 10,619
200 Nacco Industries, Inc. (Class A).................................................................. 10,975
446 Pall Corp......................................................................................... 8,418
200 Parker-Hannifin Corp.............................................................................. 7,650
274 Timken Co......................................................................................... 10,001
226 Trinova Corp...................................................................................... 7,458
185 Tyco International, Ltd........................................................................... 9,990
--------
99,742
--------
MEDICAL PRODUCTS & SUPPLIES (1.7%)
349 Allergan, Inc..................................................................................... 8,114
318 Bard (C.R.) Inc................................................................................... 9,341
169 Bausch & Lomb, Inc................................................................................ 8,894
336 Baxter International, Inc......................................................................... 7,980
229 Becton, Dickinson & Co............................................................................ 8,444
750 Biomet, Inc.*..................................................................................... 7,781
100 Medtronic, Inc.................................................................................... 8,400
300 St. Jude Medical, Inc............................................................................. 8,775
313 United States Surgical Corp....................................................................... 9,977
--------
77,706
--------
METALS--MISCELLANEOUS (0.9%)
476 ASARCO, Inc....................................................................................... 12,198
300 Cyprus Amax Minerals Co........................................................................... 9,000
341 Inco, Ltd......................................................................................... 9,420
200 Phelps Dodge Corp................................................................................. 10,850
--------
41,468
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
MISCELLANEOUS (4.2%)
100 Allied Signal, Inc. .............................................................................. $ 7,862
251 American Greetings Corp........................................................................... 7,593
200 Block (H&R), Inc.................................................................................. 8,775
125 Cisco Systems, Inc.*.............................................................................. 9,031
309 Corning, Inc...................................................................................... 9,926
231 Deluxe Corp....................................................................................... 8,056
216 Dial Corp. Arizona................................................................................ 9,423
285 Donnelley (R.R.) & Sons Co........................................................................ 8,834
200 Eastman Chemical Co............................................................................... 8,750
200 Eastman Kodak Co.................................................................................. 8,825
200 General Signal Corp............................................................................... 7,274
180 Harcourt General, Inc............................................................................. 6,480
400 Harland (John H.) Co.............................................................................. 9,200
164 Harris Corp....................................................................................... 7,934
266 Interpublic Group Cos., Inc....................................................................... 8,446
447 Jostens, Inc...................................................................................... 7,934
142 McCaw Cellular Communications, Inc................................................................ 7,632
80 Minnesota Mining & Manufacturing Co............................................................... 8,580
221 Pioneer Hi Bred International..................................................................... 8,564
250 Polaroid Corp..................................................................................... 8,405
300 Service Corp. International....................................................................... 7,913
111 TRW, Inc.......................................................................................... 8,297
540 Whitman Corp...................................................................................... 8,573
--------
192,307
--------
MULTI-LINE INSURANCE (0.8%)
144 Aetna Life & Casualty Co.......................................................................... 9,144
100 American International Group, Inc................................................................. 9,263
135 CIGNA Corp........................................................................................ 9,332
100 CNA Financial Corp.*.............................................................................. 8,137
--------
35,876
--------
NATURAL GAS (2.5%)
1,000 Arkla, Inc........................................................................................ 8,500
333 Coastal Corp...................................................................................... 10,281
184 Consolidated Natural Gas Co....................................................................... 8,464
321 Eastern Enterprises............................................................................... 8,346
228 Enron Corp........................................................................................ 7,496
387 ENSERCH Corp...................................................................................... 7,014
277 Nicor, Inc........................................................................................ 7,964
366 Oneok, Inc........................................................................................ 7,229
356 Pacific Enterprises............................................................................... 8,010
324 Panhandle Eastern Corp............................................................................ 8,141
260 Peoples Energy.................................................................................... 8,028
280 Sonat, Inc........................................................................................ 8,715
550 Transco Energy, Inc............................................................................... 8,593
274 Williams Cos., Inc................................................................................ 7,158
--------
113,939
--------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
OFFICE EQUIPMENT & SUPPLIES (0.8%)
156 Alco Standard..................................................................................... $ 9,068
432 Moore Corp., Ltd. ................................................................................ 8,802
200 Pitney Bowes, Inc................................................................................. 8,975
112 Xerox Corp........................................................................................ 10,990
--------
37,835
--------
OIL & GAS DRILLING (0.4%)
320 Helmerich & Payne, Inc............................................................................ 8,840
1,100 Rowan Cos., Inc.*................................................................................. 8,663
--------
17,503
--------
OIL (EXPLORATION & PRODUCTION) (0.6%)
200 Burlington Resources, Inc......................................................................... 9,625
1,200 Maxus Energy Corp.*............................................................................... 6,300
300 Oryx Energy Co.................................................................................... 5,400
741 Santa Fe Energy Resources......................................................................... 6,854
--------
28,179
--------
OIL INTERGRATED--DOMESTIC (2.0%)
141 Amerada Hess Corp................................................................................. 6,839
256 Ashland Oil, Inc.................................................................................. 9,600
85 Atlantic Richfield Co............................................................................. 9,393
163 Kerr McGee Corp................................................................................... 7,498
169 Louisiana Land & Exploration Co. (The)............................................................ 7,035
475 Occidental Petroleum Corp......................................................................... 8,550
165 Pennzoil Co....................................................................................... 9,115
232 Phillips Petroleum Co............................................................................. 6,844
300 Sun Co............................................................................................ 9,262
256 Unocal Corp....................................................................................... 7,520
500 USX--Marathon Group............................................................................... 9,250
--------
90,906
--------
OIL INTERGRATED--INTERNATIONAL (1.1%)
160 Amoco Corp........................................................................................ 8,600
100 Chevron Corp...................................................................................... 9,338
127 Exxon Corp........................................................................................ 8,446
120 Mobil Corp........................................................................................ 9,720
71 Royal Dutch Petroleum Co.......................................................................... 7,810
113 Texaco, Inc....................................................................................... 7,641
--------
51,555
--------
OIL WELL--EQUIPMENT & SERVICE (0.9%)
385 Baker Hughes, Inc................................................................................. 7,748
420 Dresser Industries, Inc........................................................................... 9,293
256 Halliburton Co.................................................................................... 8,256
374 McDermott International, Inc...................................................................... 8,835
141 Schlumberger, Ltd................................................................................. 8,372
--------
42,504
--------
PAPER & FOREST PRODUCTS (2.9%)
351 Boise Cascade Corp................................................................................ 9,433
251 Champion International Corp....................................................................... 8,377
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
400 Federal Paper Board, Inc.......................................................................... $ 10,500
110 Georgia Pacific Corp.............................................................................. 8,278
143 International Paper Co............................................................................ 10,743
440 James River Corp. of Virginia..................................................................... 8,855
178 Kimberly-Clark Corp............................................................................... 10,124
184 Louisiana-Pacific Corp............................................................................ 8,142
200 Mead Corp......................................................................................... 9,475
164 Potlatch Corp..................................................................................... 7,729
250 Scott Paper Co.................................................................................... 11,687
191 Union Camp Corp................................................................................... 9,383
271 Westvaco Corp..................................................................................... 9,824
179 Weyerhaeuser Co................................................................................... 8,748
--------
131,298
--------
PERSONAL LOANS (0.4%)
228 Beneficial Corp................................................................................... 9,035
256 Household International, Inc...................................................................... 8,480
--------
17,515
--------
POLLUTION CONTROL (0.8%)
360 Browning-Ferris Industries, Inc. ................................................................. 10,800
1,400 Rollins Environmental Services, Inc............................................................... 7,525
360 WMX Technologies, Inc............................................................................. 10,575
327 Zurn Industries Inc............................................................................... 9,360
--------
38,260
--------
PROPERTY--CASUALTY INSURANCE (1.1%)
122 Chubb Corp. ...................................................................................... 10,141
300 Continental Corp. ................................................................................ 8,475
68 General Re Corp. ................................................................................. 7,761
145 Safeco Corp....................................................................................... 8,555
100 St. Paul Cos., Inc................................................................................ 8,837
600 USF&G Corp........................................................................................ 8,400
--------
52,169
--------
PUBLISHING (0.5%)
121 Dun & Bradstreet Corp............................................................................. 7,608
120 McGraw-Hill, Inc.................................................................................. 8,310
200 Meredith Corp..................................................................................... 8,425
--------
24,343
--------
PUBLISHING--NEWSPAPER (1.2%)
214 Dow Jones & Co., Inc.............................................................................. 8,480
170 Gannett Co., Inc.................................................................................. 9,690
161 Knight-Ridder Newspapers, Inc..................................................................... 9,338
383 New York Times Co. (Class A)...................................................................... 10,916
257 Times Mirror Co. (The)............................................................................ 9,316
139 Tribune Co........................................................................................ 8,357
--------
56,097
--------
RAILROADS (1.2%)
138 Burlington Northern, Inc.......................................................................... 8,918
121 Conrail, Inc...................................................................................... 7,865
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
100 CSX Corp.......................................................................................... $ 9,175
134 Norfolk Southern Corp............................................................................. 9,866
400 Santa Fe Pacific Corp............................................................................. 9,800
120 Union Pacific Corp................................................................................ 7,845
--------
53,469
--------
RESTAURANTS (0.9%)
400 Luby's Cafeterias, Inc............................................................................ 9,100
159 McDonald's Corp................................................................................... 9,659
1100 Ryan's Family Steak House, Inc.*.................................................................. 8,388
328 Shoney's Inc.*.................................................................................... 7,544
462 Wendy's International, Inc........................................................................ 7,912
--------
42,603
--------
RETAIL--DEPARTMENT STORES (0.9%)
218 Dillard Department Stores, Inc.
(Class A)....................................................................................... 7,821
182 May Department Stores Co.......................................................................... 7,189
233 Mercantile Stores, Inc............................................................................ 9,204
236 Nordstrom, Inc.................................................................................... 8,260
149 Penney (J.C.) Co., Inc............................................................................ 7,803
--------
40,277
--------
RETAIL--DRUG STORES (0.6%)
267 Longs Drug Stores Corp............................................................................ 8,945
550 Rite Aid Corp..................................................................................... 10,243
200 Walgreen Co....................................................................................... 7,800
--------
26,988
--------
RETAIL--FOOD CHAINS (1.3%)
380 Albertson's, Inc.................................................................................. 10,165
200 American Stores Co................................................................................ 8,475
950 Brunos, Inc....................................................................................... 7,719
350 Giant Foods, Inc. (Class A)....................................................................... 8,269
332 Great Atlantic & Pacific Tea, Inc................................................................. 7,885
400 Kroger Co.*....................................................................................... 8,950
180 Winn-Dixie Stores, Inc............................................................................ 9,000
--------
60,463
--------
RETAIL--GENERAL MERCHANDISE (0.7%)
140 Dayton-Hudson Corp................................................................................ 9,205
450 K-Mart Corp....................................................................................... 8,831
131 Sears, Roebuck & Co............................................................................... 7,189
300 Wal-Mart Stores, Inc.............................................................................. 7,950
--------
33,175
--------
RETAIL--SPECIALTY (1.9%)
300 Blockbuster Entertainment......................................................................... 8,288
300 Circuit City Stores, Inc.......................................................................... 5,850
200 Home Depot, Inc................................................................................... 7,800
154 Lowe's Co., Inc................................................................................... 9,394
211 Melville Corp..................................................................................... 8,387
361 Pep Boys-Manny, Moe & Jack........................................................................ 10,108
500 Price/Costco, Inc.*............................................................................... 8,813
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
200 Tandy Corp........................................................................................ $ 9,550
250 Toys 'R' Us, Inc.*................................................................................ 9,124
400 Woolworth (F.W.) Co............................................................................... 10,400
--------
87,714
--------
RETAIL--SPECIALTY APPAREL (0.8%)
800 Charming Shoppes, Inc............................................................................. 9,100
249 Gap (The), Inc.................................................................................... 10,520
500 Limited, Inc...................................................................................... 8,875
264 TJX Companies, Inc................................................................................ 7,458
--------
35,953
--------
SAVINGS & LOAN ASSOCIATION (0.6%)
463 Ahmanson (H.F.) & Co.............................................................................. 8,681
230 Golden West Financial Corp........................................................................ 10,206
500 Great Western Financial Corp...................................................................... 9,688
--------
28,575
--------
SHOES (0.8%)
250 Brown Group, Inc.................................................................................. 8,781
1,200 Genesco Inc.*..................................................................................... 4,950
158 Nike, Inc. (Class B).............................................................................. 7,900
300 Reebok International, Ltd......................................................................... 9,638
469 Stride Rite Corp.................................................................................. 7,621
--------
38,890
--------
STEEL (1.2%)
1,300 Armco, Inc........................................................................................ 8,613
537 Bethlehem Steel Corp.*............................................................................ 12,687
227 Inland Steel Industries, Inc.*.................................................................... 7,973
146 Nucor Corp........................................................................................ 8,614
200 USX-U.S. Steel Group.............................................................................. 8,800
475 Worthington Industries, Inc....................................................................... 9,143
--------
55,830
--------
TELECOMMUNICATIONS (LONG DISTANCE) (0.6%)
155 American Telephone & Telegraph Co................................................................. 8,796
300 MCI Communications Corp........................................................................... 8,250
233 Sprint Corp....................................................................................... 8,446
--------
25,492
--------
TEXTILES (1.1%)
1,100 Hartmarx Corp.*................................................................................... 7,425
400 Liz Claiborne, Inc................................................................................ 8,300
500 Oshkosh B' Gosh, Inc. (Class A)................................................................... 8,250
300 Russell Corp...................................................................................... 7,913
235 Springs Industries, Inc........................................................................... 8,401
200 V.F. Corp......................................................................................... 9,275
--------
49,564
--------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
TOBACCO (0.6%)
227 American Brands, Inc.............................................................................. $ 8,115
150 Philip Morris Cos., Inc........................................................................... 9,038
318 UST, Inc.......................................................................................... 9,063
--------
26,216
--------
TOYS (0.4%)
260 Hasbro, Inc....................................................................................... 8,775
400 Mattel, Inc....................................................................................... 9,117
--------
17,892
--------
TRANSPORTATION--MISCELLANEOUS (0.6%)
113 Federal Express Corp.*............................................................................ 8,588
287 Pittston Co....................................................................................... 8,825
325 Ryder System, Inc................................................................................. 8,734
--------
26,147
--------
TRUCKERS (0.7%)
400 Consolidated Freightways, Inc.*................................................................... 10,400
142 Roadway Service, Inc.............................................................................. 9,905
400 Yellow Corp....................................................................................... 11,500
--------
31,805
--------
UTILITIES--ELECTRIC (4.3%)
200 American Electric Power Co., Inc.................................................................. 7,225
359 Baltimore Gas and Electric Co..................................................................... 8,930
261 Carolina Power & Light Co......................................................................... 7,765
296 Central & South West Corp......................................................................... 8,806
300 Commonwealth Edison Co............................................................................ 8,513
271 Consolidated Edison of New York, Inc.............................................................. 8,435
270 Detroit Edison Co................................................................................. 7,999
200 Dominion Resources, Inc........................................................................... 8,650
217 Duke Power Co..................................................................................... 9,114
250 Entergy Corp...................................................................................... 9,313
235 FPL Group, Inc.................................................................................... 8,666
181 Houston Industries, Inc........................................................................... 8,258
373 Niagara Mohawk Power Corp......................................................................... 7,553
179 Northern States Power Co.......................................................................... 7,809
410 Ohio Edison Co.................................................................................... 8,968
260 Pacific Gas & Electric Co......................................................................... 8,808
472 Pacificorp........................................................................................ 8,850
265 PECO Energy Co.................................................................................... 7,652
291 PSI Resources, Inc................................................................................ 7,457
274 Public Service Enterprise Group, Inc.............................................................. 8,664
400 SCECORP........................................................................................... 7,800
177 Southern Co....................................................................................... 7,700
191 Texas Utilities Co................................................................................ 7,377
215 Union Electric Co................................................................................. 8,277
--------
198,589
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--VALUE-ADDED MARKET SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
UTILITIES--TELEPHONE (1.5%)
200 Ameritech Corp.................................................................................... $ 8,400
138 Bell Atlantic Corp................................................................................ 7,832
143 Bellsouth Corp.................................................................................... 8,795
260 GTE Corp.......................................................................................... 8,938
200 NYNEX Corp........................................................................................ 8,200
136 Pacific Telesis Group............................................................................. 7,837
200 Southwestern Bell Corp............................................................................ 8,374
210 U.S. West, Inc.................................................................................... 9,187
----------
67,563
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $4,147,309).................................................................... $4,403,853
----------
<CAPTION>
Principal
Amount (in
thousands) Value
- ---------- -----
<S> <C>
SHORT-TERM INVESTMENT (A)(4.1%)
U.S. GOVERNMENT AGENCY (4.1%)
$ 190 Federal Home Loan Banks 2.97%
due 2/9/94
(Amortized Cost $189,875)....................................................................... $ 189,875
----------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $4,337,184)(B)................................................................................ 100.3% 4,593,728
LIABILITIES IN EXCESS OF
CASH AND OTHER ASSETS.............................................................................. (0.3) (12,254)
----- ----------
NET ASSETS........................................................................................... 100.0% $4,581,474
----- ----------
----- ----------
<FN>
- ------------
+ American Depository Receipt.
* Non-income producing security.
(a) U.S. Government agency was purchased on a discount basis. The rate shown reflects the bond equivalent interest rate.
(b) The aggregate cost for federal income tax purposes is $4,337,184; the aggregate gross unrealized appreciation is $338,885
and the aggregate gross unrealized depreciation is $82,341, resulting in net unrealized appreciation of $256,544.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--GLOBAL EQUITY SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (39.3%)
CANADA (3.1%)
BANKING
300 Bank of Nova Scotia............................................................................... $ 7,357
--------
METALS & MINING
200 American Barrick.................................................................................. 5,565
--------
NATURAL GAS
300 Renaissance Energy Ltd............................................................................ 6,791
--------
NATURAL RESOURCES
300 Noranda........................................................................................... 6,027
--------
PAPER AND FOREST PRODUCTS
400 International Forest Products..................................................................... 6,149
--------
TELECOMMUNICATIONS
100 BCE, Inc. ........................................................................................ 3,631
100 BCE Mobile Communications, Inc.................................................................... 3,141
--------
6,772
--------
TOTAL CANADA...................................................................................... 38,661
--------
FRANCE (1.6%)
BANKING
40 Societe Generale ................................................................................. 5,312
--------
MULTI-INDUSTRY
10 Finance Industry ................................................................................. 3,781
--------
OIL RELATED
30 Esso Ste Anonyme Francaise........................................................................ 5,577
--------
TELECOMMUNICATIONS
60 Television Francaise ............................................................................. 5,664
--------
TOTAL FRANCE...................................................................................... 20,334
--------
GERMANY (1.3%)
BANKING
20 Commerzbank AG ................................................................................... 4,313
--------
BUSINESS SERVICES
20 Rosenthal AG ..................................................................................... 3,101
--------
MULTI-INDUSTRY
10 Preussag AG ...................................................................................... 2,662
--------
OFFICE EQUIPMENT
15 Herlitz AG ....................................................................................... 3,575
--------
RETAIL
10 Kaufhof Holding AG ............................................................................... 2,880
--------
TOTAL GERMANY..................................................................................... 16,531
--------
HONG KONG (1.9%)
BANKING
300 Hong Kong & Shanghai Banking
Corp. Holdings ................................................................................. 4,468
--------
CONGLOMERATES
600 Swire Pacific Ltd (A Shares)...................................................................... 4,933
--------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
ELECTRIC UTILITIES
1,300 Hong Kong Electric Holdings....................................................................... $ 4,933
--------
REAL ESTATE
1,000 Realty Development Corp. ......................................................................... 4,564
--------
TRANSPORTATION
2,300 Cathay Pacific Airways Ltd. ...................................................................... 4,110
--------
TOTAL HONG KONG................................................................................... 23,008
--------
JAPAN (7.3%)
ELECTRONICS
1,000 Hitachi Ltd (Hit. Seisakusho) .................................................................... 8,312
--------
FINANCE
1,000 Dai-Ichi Kangyo Bank.............................................................................. 18,277
--------
FOODS & BEVERAGES
1,000 House Food Industrial ............................................................................ 22,962
--------
INSURANCE
1,000 Dai-Tokyo Marine & Fire Insurance................................................................. 7,072
--------
MACHINERY
1,000 Komatsu Ltd. ..................................................................................... 7,889
--------
MULTI-INDUSTRY
1,000 Furukawa Co. Ltd. ................................................................................ 5,281
--------
RETAIL
1,000 Jusco............................................................................................. 20,756
--------
TOTAL JAPAN....................................................................................... 90,549
--------
NETHERLANDS (1.6%)
BANKING
100 Abn Amro Holdings ................................................................................ 3,696
--------
INSURANCE
100 Aegon NV ......................................................................................... 5,454
100 AMEV ............................................................................................. 4,393
--------
9,847
--------
PUBLISHING
100 Wolters Kluwer ................................................................................... 6,550
--------
TOTAL NETHERLANDS................................................................................. 20,093
--------
SWITZERLAND (1.5%)
BANKING
10 Swiss Bank Corp................................................................................... 3,565
--------
HEALTH & PERSONAL CARE
1 Roche Holdings NPV................................................................................ 4,877
--------
HOUSEHOLD PRODUCTS
4 SMH AG (Registered)............................................................................... 2,809
--------
INSURANCE
4 Zurich Insurance.................................................................................. 4,344
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--GLOBAL EQUITY SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
MANUFACTURING
10 Holderbk Financiere............................................................................... $ 2,801
--------
TOTAL SWITZERLAND................................................................................. 18,396
--------
UNITED KINGDOM (2.7%)
AUTOMOTIVE
1,000 Rolls Royce, PLC.................................................................................. 2,783
--------
BANKING
400 National Westminster Bank......................................................................... 3,569
--------
BUSINESS SERVICES
200 Reuters Holdings, PLC............................................................................. 5,983
--------
FOOD PROCESSING
500 Tate & Lyle....................................................................................... 3,346
--------
FOODS & BEVERAGES
400 Grand Metropolitan................................................................................ 2,935
1,000 Tesco, PLC........................................................................................ 3,323
--------
6,258
--------
MULTI-INDUSTRY
800 Hanson Trust, PLC................................................................................. 3,460
--------
OIL RELATED
1,000 Lasmo Oil......................................................................................... 1,913
--------
RETAIL
400 Boots Co., PLC.................................................................................... 3,314
1,000 Next, PLC......................................................................................... 3,467
--------
6,781
--------
TOTAL UNITED KINGDOM.............................................................................. 34,093
--------
UNITED STATES (18.3%)
AUTO PARTS
300 Federal Mogul..................................................................................... 10,838
--------
AUTO PARTS--ORIGINAL EQUIPMENT
100 General Motors Corp............................................................................... 6,138
--------
AUTOMOTIVE
200 Chrysler Corp..................................................................................... 12,300
200 Magna International, Inc.......................................................................... 10,025
--------
22,325
--------
BANK HOLDING COMPANIES
100 First Interstate Bancorp......................................................................... 7,013
--------
BANKS--INTERNATIONAL
200 Citicorp......................................................................................... 8,750
--------
BROADCAST MEDIA
20 Capital Cities/ABC............................................................................... 13,100
--------
BUILDING & CONTRUCTION
150 Heilig--Meyers................................................................................... 5,288
--------
CHEMICALS
100 Monsanto Co...................................................................................... 7,713
--------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMUNICATIONS--EQUIPMENT & SOFTWARE
100 Cisco Systems Inc.*............................................................................... $ 7,225
100 MCI Communications Corp........................................................................... 2,750
200 Newbridge Network Corp.*.......................................................................... 13,350
--------
23,325
--------
COMPUTER SOFTWARE
200 Oracle Systems Corp.*............................................................................. 6,425
200 Sybase, Inc.*..................................................................................... 9,150
--------
15,575
--------
ELECTRONICS--COMPONENTS
200 Maxim Integrated Products Inc.*................................................................... 9,850
--------
ELECTRONICS--SEMICONDUCTORS
100 Motorola, Inc..................................................................................... 9,850
100 Texas Instruments, Inc............................................................................ 7,025
--------
16,875
--------
ENTERTAINMENT
150 Acclaim Entertainment, Inc. (New)*................................................................ 3,300
--------
FINANCE
100 CUC International*................................................................................ 3,200
--------
FOREST PRODUCTS
100 Georgia Pacific Corp.............................................................................. 7,525
--------
HEALTH EQUIPMENT AND SERVICES
100 United Healthcare Corp............................................................................ 8,550
--------
HOSPITAL MANAGEMENT
300 Genesis Health Ventures Inc.*..................................................................... 7,275
--------
HOTELS
100 Hospitality Franchise System*..................................................................... 5,538
150 Promus Cos., Inc.*................................................................................ 7,594
--------
13,132
--------
INSURANCE
75 American International Group...................................................................... 6,947
--------
MACHINERY--CONSTRUCTION & MATERIALS
100 Caterpillar Inc................................................................................... 10,413
--------
RAILROAD EQUIPMENT
150 Trinity Industries, Inc........................................................................... 6,581
--------
TELECOMMUNICATIONS EQUIPMENT
100 DSC Communications Corp.*......................................................................... 5,975
--------
TRANSPORTATION--MISCELLANEOUS
100 Federal Express*.................................................................................. 7,600
--------
TOTAL UNITED STATES............................................................................... 227,288
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $447,687).................................................................... 488,953
--------
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--GLOBAL EQUITY SERIES January 31, 1994 (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Principal
Amount (in
thousands) Value
- ---------- -----
<C> <S> <C>
SHORT-TERM INVESTMENT (A)(29.9%)
UNITED STATES (29.9%)
U.S. GOVERNMENT AGENCY (29.9%)
$ 371 Federal Home Loan Mortgage Corp.,
3.05% due 2/01/94
(Amortized Cost $371,000)....................................................................... $ 371,000
----------
TOTAL INVESTMENTS
(IDENTIFIED COST $818,687)(B)...................................................................... 69.2% $ 859,953
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES.............................................................................. 30.8 383,224
----- ----------
NET ASSETS........................................................................................... 100.0% $1,243,177
----- ----------
----- ----------
<FN>
- ------------
* Non-income producing security.
(a) Short-term investment was purchased on a discount basis. The interest rate shown has been adjusted to reflect a bond
equivalent yield.
(b) The aggregate cost for federal income tax purposes is $818,687; the aggregate gross unrealized appreciation is $49,183
and the aggregate gross unrealized depreciation is $7,917, resulting in net unrealized appreciation of $41,266.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES--GLOBAL EQUITY SERIES
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Percent of
Industry Value Net Assets
- -------- ----- ----------
<S> <C> <C>
Auto Parts........................................................................... $ 16,976 1.4%
Automotive........................................................................... 25,108 2.0
Banking.............................................................................. 39,293 3.2
Banks--International................................................................. 8,750 0.7
Broadcast Media...................................................................... 13,100 1.1
Building & Construction.............................................................. 5,288 0.4
Business Services.................................................................... 9,084 0.7
Chemicals............................................................................ 7,713 0.6
Communications--Equipment & Software................................................. 23,325 1.9
Computer Software.................................................................... 15,575 1.2
Conglomerates........................................................................ 4,933 0.4
Electric Utilities................................................................... 4,933 0.4
Electronics.......................................................................... 35,037 2.8
Entertainment........................................................................ 3,300 0.3
Finance.............................................................................. 21,477 1.7
Food, Beverage, Tobacco & Household Products......................................... 32,029 2.6
Food Processing...................................................................... 3,346 0.3
Health & Personal Care............................................................... 20,702 1.7
Hotels............................................................................... 13,132 1.1
Insurance............................................................................ 28,210 2.3
Machinery............................................................................ 18,302 1.5
Manufacturing........................................................................ 2,801 0.2
Metals and Mining.................................................................... 5,565 0.4
Multi-Industry....................................................................... 15,184 1.2
Natural Gas.......................................................................... 12,818 1.0
Office Equipment..................................................................... 3,575 0.3
Oil Related.......................................................................... 7,490 0.6
Paper and Forest Products............................................................ 13,674 1.1
Publishing........................................................................... 6,550 0.5
Railroad Equipment................................................................... 6,581 0.5
Real Estate.......................................................................... 4,564 0.4
Retail Stores........................................................................ 30,417 2.4
Telecommunications................................................................... 18,411 1.5
Transportation....................................................................... 11,710 0.9
U.S. Government Agency............................................................... 371,000 29.9
-------- ----
$859,953 69.2%
-------- ----
-------- ----
<CAPTION>
SUMMARY OF INVESTMENTS BY TYPE January 31, 1994 (unaudited)
===================================================================================================================================
Type of Investment
- ------------------
<S> <C> <C>
Common Stocks........................................................................ $488,953 39.3%
Short-Term Investment................................................................ 371,000 29.9
-------- -----
$859,953 69.2%
-------- -----
-------- -----
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--STRATEGIST SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
COMMON STOCKS (58.3%)
AEROSPACE & DEFENSE (0.9%)
140 Lockheed Corp..................................................................................... $ 9,082
--------
AIRCRAFT & AEROSPACE (1.1%)
140 Allied-Signal, Inc................................................................................ 11,008
--------
ALUMINUM (1.0%)
180 Reynolds Metals Co. .............................................................................. 9,608
--------
AUTOMOTIVE (2.2%)
160 Ford Motor Co..................................................................................... 10,720
180 General Motors Corp............................................................................... 11,048
--------
21,768
--------
BANKING (2.5%)
180 Chemical Banking Corp............................................................................. 7,110
100 Morgan (J.P.) Co., Inc............................................................................ 7,175
75 Wells Fargo & Co.................................................................................. 10,284
--------
24,569
--------
BEVERAGES--SOFT DRINK (0.9%)
230 PepsiCo., Inc..................................................................................... 9,286
--------
BROADCAST MEDIA (0.9%)
200 QVC Network Inc.*................................................................................. 8,750
--------
CABLE/CELLULAR (1.4%)
200 Comcast Corp (Class A)............................................................................ 6,275
180 Viacom Inc. (Class A)*............................................................................ 7,065
--------
13,340
--------
CHEMICALS (1.0%)
150 Dow Chemical Co................................................................................... 9,525
--------
CHEMICALS--SPECIALTY (2.3%)
490 Georgia Gulf Corp.*............................................................................... 11,883
560 Praxair, Inc...................................................................................... 10,500
--------
22,383
--------
COMPUTERS--EQUIPMENT (2.1%)
200 MFS Communications Co. Inc.*...................................................................... 7,700
200 Newbridge Networks Corp*.......................................................................... 13,350
--------
21,050
--------
COMPUTERS--SOFTWARE SERVICES (3.4%)
200 BMC Software Inc*................................................................................. 12,700
240 General Motors (Class E).......................................................................... 10,200
120 Microsoft Corp*................................................................................... 10,200
--------
33,100
--------
COMPUTERS--SYSTEMS (3.7%)
265 Digital Equipment Corp.*.......................................................................... 8,015
100 Hewlett-Packard Co................................................................................ 8,538
370 Novell, Inc.*..................................................................................... 8,325
420 Sun Microsystems, Inc.*........................................................................... 11,130
--------
36,008
--------
<PAGE>
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
DRUGS (1.7%)
300 Merck & Co., Inc.................................................................................. $ 10,950
200 Upjohn Co......................................................................................... 6,000
--------
16,950
--------
ELECTRICAL EQUIPMENT (3.1%)
170 Emerson Electric Co............................................................................... 10,413
100 General Electric Corp............................................................................. 10,775
290 Honeywell, Inc.................................................................................... 9,461
--------
30,649
--------
ELECTRONICS--SEMICONDUCTORS (0.9%)
130 Intel Corp........................................................................................ 8,482
--------
ENTERTAINMENT/GAMING (2.0%)
250 Circus Circus Enterpr Inc*........................................................................ 9,250
200 Promus Cos Inc.................................................................................... 10,125
--------
19,375
--------
FINANCE (1.0%)
110 Federal National Mortgage Association............................................................. 9,611
--------
FINANCE--DIVERSIFIED (0.7%)
160 Travelers Inc..................................................................................... 6,740
--------
FOODS (0.7%)
180 Campbell Soup Co.................................................................................. 6,975
--------
FOREST PRODUCTS (2.0%)
250 Louisiana--Pacific Corp........................................................................... 11,063
180 Potlatch Corp..................................................................................... 8,482
--------
19,545
--------
HEALTHCARE (2.3%)
540 Humana, Inc....................................................................................... 10,935
170 U.S. Healthcare, Inc.............................................................................. 11,263
--------
22,198
--------
HOUSEHOLD PRODUCTS (0.8%)
130 Colgate--Palmolive Co............................................................................. 7,751
--------
INSURANCE (0.7%)
180 Capital Holding Corp.............................................................................. 6,525
--------
MACHINERY--AGRICULTURE (1.1%)
140 Deere & Co........................................................................................ 11,270
--------
MACHINERY--CONSTRUCTION & MATERIALS (1.0%)
255 Ingersoll Rand Co................................................................................. 9,754
--------
METALS (1.1%)
190 Phelps Dodge Corp................................................................................. 10,308
--------
<PAGE>
</TABLE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
PORTFOLIO OF INVESTMENTS--STRATEGIST SERIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Number of
Shares Value
- --------- -----
<C> <S> <C>
NATURAL GAS DISTRIBUTION (1.2%)
290 Pacific Enterprises............................................................................... $ 6,525
200 Williams Cos Inc.................................................................................. 5,225
--------
11,750
--------
OIL DRILLING & SERVICES (1.0%)
170 Schlumberger, Ltd................................................................................. 10,094
--------
OIL INTERGRATED--INTERNATIONAL (3.4%)
115 Chevron Corp...................................................................................... 10,738
120 Exxon Corp........................................................................................ 7,980
90 Mobil Corp........................................................................................ 7,290
110 Texaco, Inc....................................................................................... 7,439
--------
33,447
--------
RAILROADS (1.1%)
120 CSX Corp.......................................................................................... 11,010
--------
RETAIL (1.9%)
200 Penney (J.C.) Co.................................................................................. 10,475
300 Wal-Mart Stores, Inc.............................................................................. 7,950
--------
18,425
--------
RETAIL--SPECIALTY (1.9%)
230 Gap, Inc. ........................................................................................ 9,718
950 Pier 1 Imports, Inc. ............................................................................. 8,787
--------
18,505
--------
STEEL & IRON (1.3%)
535 Bethlehem Steel Corp.* ........................................................................... 12,639
--------
TELECOMMUNICATIONS (4.0%)
185 American Telephone & Telegraph.................................................................... 10,499
400 MCI Communications................................................................................ 11,000
175 NYNEX Corp. ...................................................................................... 7,175
175 Pacific Telesis Corp. ............................................................................ 10,084
--------
38,758
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $536,698).................................................................................. 570,238
--------
<PAGE>
<CAPTION>
Principal
Amount (in
thousands) Value
- --------- -----
<C> <S> <C>
CORPORATE BONDS (3.1%)
STEEL & IRON (1.1%)
$ 10 Pohang Iron & Steel 7.50% due 8/01/02 ............................................................ $ 10,772
--------
UTILITIES--ELECTRIC (2.0%)
10 Long Island Lighting Co. 6.25% due 7/15/01 ....................................................... 9,721
10 United Illuminating Co. 6.20% due 1/15/99......................................................... 10,088
--------
19,809
--------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $30,280)....................................................................... 30,581
--------
U.S. GOVERNMENT OBLIGATIONS (16.4%)
75 U.S. Treasury Bond 6.25% due 8/15/23.............................................................. 75,059
25 U.S. Treasury Note 7.875% due 11/15/99............................................................ 28,371
50 U.S. Treasury Note 7.50% due 5/15/02.............................................................. 56,531
--------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $161,320)................................................................................. 159,961
--------
SHORT-TERM INVESTMENTS (A)(18.4%)
U.S. GOVERNMENT AGENCIES (18.4%)
70 Federal Farm Credit Bank 3.005% due 2/11/94....................................................... 69,942
110 Federal Home Loan Banks 2.962% due 2/3/94......................................................... 109,981
--------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $179,923)................................................................................... 179,923
--------
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $908,221) (B)................................................ 96.2% 940,703
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES............................................. 3.8 37,228
----- --------
NET ASSETS......................................................... 100.0% $977,931
----- --------
----- --------
<FN>
- ------------
* Non-income producing security.
(a) U.S. Government Agencies were purchased on a discount basis. The rates shown reflect bond equivalent interest rates.
(b) The aggregate cost for federal income tax purposes is $908,221; the aggregate gross unrealized appreciation is $56,764 and the
aggregate gross unrealized depreciation is $24,282, resulting in net unrealized appreciation of $32,482.
See Notes to Financial Statements
<PAGE>
</TABLE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
STATEMENT OF ASSETS AND LIABILITIES January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
U.S. U.S.
Liquid Government Government Intermediate
Asset Money Market Securities Income
Series Series Series Series
------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (identified cost
$1,385,615, $1,724,374, $2,362,654, $198,657,
$3,681,858, $175,301, $8,799,302, $2,986,570,
$4,337,184, $818,687, and $908,221, respectively) (Note 1)...................$1,385,615 $1,724,374 $2,371,152 $198,742
Cash.......................................................................... 398 986 36,483 5,957
Receivable for:
Investments sold............................................................. 153 -- -- --
Interest..................................................................... -- -- 1,227 2,573
Shares of beneficial interest sold........................................... -- -- 191,544 1,701
Foreign witholding taxes reclaimed........................................... -- -- -- --
Dividends.................................................................... -- -- -- --
---------- ---------- ---------- --------
TOTAL ASSETS.............................................................. 1,386,166 1,725,360 2,600,406 208,973
---------- ---------- ---------- --------
LIABILITIES:
Payable for:
Investments purchased........................................................ -- -- -- --
Shares of beneficial interest repurchased.................................... -- -- 468 --
Dividends to shareholders.................................................... -- -- 1,108 142
---------- ---------- ---------- --------
TOTAL LIABILITIES......................................................... -- -- 1,576 142
---------- ---------- ---------- --------
NET ASSETS:
Paid-in-capital............................................................... 1,386,165 1,725,358 2,590,332 209,047
Accumulated realized gains (losses)--net...................................... -- -- -- (301)
Unrealized appreciation--net.................................................. -- -- 8,498 85
Accumulated undistributed investment income--net.............................. 1 2 -- --
---------- ---------- ---------- --------
NET ASSETS................................................................$1,386,166 $1,725,360 $2,598,830 $208,831
---------- ---------- ---------- --------
---------- ---------- ---------- --------
SHARES OF BENEFICIAL INTEREST OUTSTANDING..................................... 1,386,166 1,725,360 258,116 20,927
---------- ---------- ---------- --------
---------- ---------- ---------- --------
NET ASSET VALUE PER SHARE
(unlimited authorized shares of $.01 par value).............................. $1.00 $1.00 $10.07 $9.98
---------- ---------- ---------- --------
---------- ---------- ---------- --------
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited)
- -------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--Dean Witter Retirement Series (the
"Fund") is registered under the Investment Company Act of 1940, as amended (the
"Act") as an open-end management investment company, consisting of eleven
separate Series: Liquid Asset Series; U.S. Government Money Market Series; U.S.
Government Securities Series; Intermediate Income Securities Series; American
Value Series; Capital Growth Series; Dividend Growth Series; Utilities Series;
Value-Added Market Series; Global Equity Series and Strategist Series. All of
the Series, with the exception of the Strategist Series, are diversified. The
Fund was organized as a Massachusetts business trust on May 14, 1992 and on
July 27, 1992 the U.S. Government Securities Series issued 10,000 shares of
beneficial interest for $100,000 to Dean Witter Reynolds Inc. ("DWR"), an
affiliate of the Investment Manager, to effect the Fund's initial
capitalization. On December 4, 1992 each of the other Series issued 10,000
shares of beneficial interest to DWR for $100,000, except for the Liquid Asset
and U.S. Government Money Market Series, each of which issued 100,000 shares
of beneficial interest for $100,000. The Liquid Asset Series commenced
operations on December 30, 1992. The Dividend Growth and Strategist Series
commenced operations on January 7, 1993. The Global Equity, U.S. Government
Securities and Utilities Series commenced operations on January 8, 1993. The
Intermediate Income Securities Series
<PAGE>
<TABLE>
<CAPTION>
American Capital Dividend Value-Added Global
Value Growth Growth Utilities Market Equity Strategist
Series Series Series Series Series Series Series
-------- ------- -------- ----------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
$3,772,898 $176,223 $9,268,744 $3,041,314 $4,593,728 $ 859,953 $940,703
789 2,401 772,871 228,838 27,337 34,577 13,200
-- -- -- -- 12,556 -- --
-- -- -- -- -- -- 3,831
430,250 391 381,228 62,714 6,254 360,041 19,352
-- -- -- -- -- 11 --
1,577 106 10,679 6,159 5,373 102 845
--------- ------- ---------- --------- --------- --------- --------
4,205,514 179,121 10,433,522 3,339,025 4,645,248 1,254,684 977,931
--------- ------- ---------- --------- --------- --------- --------
888,958 -- 1,691,405 506,542 63,774 11,507 --
-- -- 3,588 400 -- -- --
-- -- -- -- -- -- --
--------- -------- --------- --------- --------- --------- --------
888,958 -- 1,694,993 506,942 63,774 11,507 --
--------- -------- --------- --------- --------- --------- --------
3,234,304 179,384 8,251,277 2,761,617 4,310,754 1,200,556 948,985
(13,997) (1,299) 2,791 8,200 8,631 30 (5,878)
91,040 922 469,442 54,744 256,544 41,266 32,482
5,209 114 15,019 7,522 5,545 1,325 2,342
- ---------- -------- --------- --------- --------- --------- --------
$3,316,556 $179,121 $8,738,529 $2,832,083 $4,581,474 $1,243,177 $977,931
- ---------- -------- --------- --------- --------- --------- --------
- ---------- -------- --------- --------- --------- --------- --------
306,998 18,434 750,623 256,159 412,897 113,946 94,755
- ---------- -------- --------- --------- --------- --------- --------
- ---------- -------- --------- --------- --------- --------- --------
$10.80 $9.72 $11.64 $11.06 $11.10 $10.91 $10.32
------ ----- ------ ------ ------ ------ ------
------ ----- ------ ------ ------ ------ ------
</TABLE>
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
- -------------------------------------------------------------------------------
commenced operations on January 12, 1993. The U.S. Government Money Market
Series commenced operations on January 20, 1993. The American Value and Value-
Added Market Series commenced operations on February 1, 1993. The Capital
Growth Series commenced operations on February 2, 1993.
The following is a summary of significant accounting policies:
(A) Valuation of Investments--The Liquid Asset and U.S. Government
Money Market Series: Portfolio securities are valued at amortized cost, which
approximates market value. All other series: (1) an equity portfolio security
listed or traded on the New York or American Stock Exchange or other domestic
or foreign stock exchange is valued at its latest sale price on that exchange
prior to the time when assets are valued (if there were no sales that day, the
security is valued at the latest bid price and in cases where securities are
traded on more than one exchange, the securities are valued on the exchange
designated as the primary market by the Trustees); (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation;
(3) when market quotations are not readily available, portfolio securities are
valued at their fair value as determined in good faith under procedures
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
STATEMENT OF OPERATIONS For the six months ended January 31, 1994 (unaudited)
===================================================================================================================================
<CAPTION>
Liquid U.S. Government U.S. Government Intermediate
Asset Money Market Securities Income
Series Series Series Series
------ --------------- --------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest......................................... $16,215 $6,953 $42,978 $6,059
Dividends........................................ -- -- -- --
------- ------ ------- ------
TOTAL INCOME................................... 16,215 6,953 42,978 6,059
------- ------ ------- ------
EXPENSES (NOTE 2)................................. -- -- -- --
------- ------ ------- ------
INVESTMENT INCOME--NET....................... 16,215 6,953 42,978 6,059
------- ------ ------- ------
REALIZED AND UNREALIZED GAIN (LOSS)--NET (NOTE 1):
Realized gain (loss) on investments--net......... -- -- -- (301)
Realized loss on foreign exchange
transactions--net............................... -- -- -- --
------- ------ ------- ------
Total reailzed gain (loss)--net................ -- -- -- (301)
Change in unrealized appreciation or depreciation
on investments--net............................. -- -- 2,739 340
------- ------ ------- ------
NET GAIN (LOSS)............................... -- -- 2,739 39
------- ------ ------- ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................... $16,215 $6,953 $45,717 $6,098
------- ------ ------- ------
------- ------ ------- ------
<FN>
- --------------
* Net of $10, $163, $133, $52 and $174 in foreign withholding tax, respectively.
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
established by and under the general supervision of the Trustees; (4) certain
of the Fund's portfolio securities may be valued by an outside pricing service
approved by the Fund's Trustees. The pricing service utilizes a matrix system
incorporating security quality, maturity and coupon as the evaluation model
parameters, and/or research and evaluations by its staff, including review of
broker-dealer market price quotations, in determining what it believes is the
fair valuation of the portfolio securities valued by such pricing service; and
(5) short-term debt securities having a maturity date of more than sixty days
are valued on a mark-to-market basis, that is, at prices based on market
quotations for securities of similar type, yield, quality and maturity, until
sixty days prior to maturity and thereafter at amortized value. Short-term debt
securities having a maturity date of sixty days or less at the time of purchase
are valued at amortized cost.
(B) Accounting for Investments--Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are deter-
<PAGE>
<TABLE>
<CAPTION>
American Capital Dividend Value-Added Global
Value Growth Growth Utilities Market Equity Strategist
Series Series Series Series Series Series Series
-------- ------- -------- ----------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
$ 2,471 $ -- $ 2,909 $ 3,459 $ 4,331 $ 821 $ 4,942
2,857* 1,166 58,952* 28,410* 27,760* 1,633* 4,766
------- -------- --------- --------- --------- --------- --------
5,328 1,166 61,861 31,869 32,091 2,454 9,708
------- -------- --------- --------- --------- --------- --------
-- -- -- -- -- -- --
------- -------- --------- --------- --------- --------- --------
5,328 1,166 61,861 31,869 32,091 2,454 9,708
------- -------- --------- --------- --------- --------- --------
(12,319) (602) 4,200 8,200 8,100 87 3,831
-- -- -- -- -- (57) --
------- -------- --------- --------- --------- --------- --------
(12,319) (602) 4,200 8,200 8,100 30 3,831
86,965 14,095 430,443 (47,062) 250,063 43,136 33,644
------- -------- --------- --------- --------- --------- --------
74,646 13,493 434,643 (38,862) 258,163 43,166 37,475
------- -------- --------- --------- --------- --------- --------
$79,974 $14,659 $496,504 $ (6,993) $290,254 $45,620 $47,183
------- -------- --------- --------- --------- --------- --------
------- -------- --------- --------- --------- --------- --------
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
mined on the identified cost method. Dividend income is recorded on the ex-
dividend date except for certain dividends from foreign securities which are
recorded as soon as the Fund is informed of such dividends after the ex-
dividend date. Interest income is accrued daily. In computing net investment
income the Liquid Asset and U.S. Government Money Market Series amortize
premiums and discounts on securities owned; gains and losses realized upon sale
of such securities are based on their amortized cost. The U.S. Government
Securities, Intermediate Income Securities, American Value, Capital Growth,
Dividend Growth, Utilities, Value-Added Market, Global Equity and Strategist
Series do not amortize premiums or accrue discounts on fixed income securities
in the portfolio, except those original issue discounts for which amortization
is required for federal income tax purposes; gains and losses realized upon
sale of such securities are based on their identified cost. Additionally, with
respect to market discount, a portion of any capital gain realized upon
disposition may be recharacterized as investment income.
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
STATEMENT OF CHANGES IN NET ASSETS
===================================================================================================================================
For the six months ended January 31, 1994 (unaudited)
and for the period ended July 31, 1993
<CAPTION>
Intermediate
U.S. Government U.S. Government Income
Liquid Asset Series Money Market Series Securities Series Securities Series
------------------- ------------------- ----------------- -----------------
1994 1993(1) 1994 1993(2) 1994 1993(3) 1994 1993(4)
---- ------- ---- ------- ---- ------- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income (loss)--net..... $ 16,215 $ 32,878 $ 6,953 $ 506 $ 42,978 $ 27,481 $ 6,059 $ 2,948
Realized gain (loss)--net......... -- 182 -- -- -- -- (301) --
Change in unrealized appreciation
or depreciation--net............. -- -- -- -- 2,739 5,759 340 (255)
--------- --------- --------- -------- --------- --------- -------- --------
Net increase (decrease) in net
assets resulting from
operations..................... 16,215 33,060 6,953 506 45,717 33,240 6,098 2,693
--------- --------- --------- -------- --------- --------- -------- --------
Dividends and distributions to
shareholders from:
Investment income--net........... (16,214) (32,878) (6,951) (506) (43,161) (27,298) (6,087) (2,920)
Realized gain--net............... -- (182) -- -- -- -- -- --
--------- --------- --------- -------- --------- --------- -------- --------
(16,214) (33,060) (6,951) (506) (43,161) (27,298) (6,087) (2,920)
--------- --------- --------- -------- --------- --------- -------- --------
Transactions in shares of
beneficial interest:
Net proceeds from sales.......... 1,075,940 3,988,705 1,601,689 24,839 976,389 1,711,084 49,460 79,271
Reinvestment of dividends and
distributions.................... 16,213 33,060 6,952 506 38,149 24,035 5,997 2,864
Cost of shares repurchased........ (787,119) (3,040,634) (8,584) (44) (173,812) (85,513) (28,545) --
--------- --------- --------- -------- --------- --------- -------- --------
Net increase in net assets from
transactions in shares of
beneficial interest............. 305,034 981,131 1,600,057 25,301 840,726 1,649,606 26,912 82,135
--------- --------- --------- -------- --------- --------- -------- --------
Total increase................... 305,035 981,131 1,600,059 25,301 843,282 1,655,548 26,923 81,908
NET ASSETS:
Beginning of period................ 1,081,131 100,000 125,301 100,000 1,755,548 100,000 181,908 100,000
--------- --------- --------- -------- --------- --------- -------- --------
END OF PERIOD (including
undistributed net investment
income (loss) of $1 and $0; $2
and $0; $0 and $183; $0 and $28;
$5,209 and $1,821; $114 and
($292); $15,019 and $7,273; $7,522
and $6,484; $5,545 and $523;
$1,325 and $2,471; $2,342 and
$3,634, respectively)............ $1,386,166 $1,081,131 $1,725,360 $125,301 $2,598,830 $1,755,548 $208,831 $181,908
========= ========= ========= ======== ========= ========= ======== ========
SHARES ISSUED AND REPURCHASED:
Sold............................... 1,075,940 3,988,705 1,601,689 24,839 97,383 170,690 4,963 7,937
Issued in reinvestment of dividends
and distributions................. 16,213 33,060 6,952 506 3,419 2,391 600 287
Repurchased........................ (787,119) (3,040,634) (8,584) (44) (17,266) (8,501) (2,860) --
--------- --------- --------- -------- --------- --------- -------- --------
Net increase..................... 305,034 981,131 1,600,057 25,301 83,536 164,580 2,703 8,224
========= ========= ========= ======== ========= ========= ======== ========
<FN>
- ------------
Commencement of operations:
(1) December 30, 1992
(2) January 20, 1993
(3) January 8, 1993
(4) January 12, 1993
(5) January 7, 1993
(6) February 1, 1993
(7) February 2, 1993
See Notes to Financial Statements
</TABLE>
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
(C) Foreign Currency Translation--The books and records of the Global Equity
Series are maintained in U.S. dollars as follows: (1) the foreign currency
market value of investment securities, other assets and liabilities and forward
contracts stated in foreign currencies are translated at the exchange rate at
the end of the period; and (2) purchases, sales, income and expenses are
translated at the rate of exchange prevailing on the respective dates of such
transactions. The resultant exchange gains and losses are included in the
Statement of Operations. Pursuant to U.S. Federal income tax regulations,
certain net
<PAGE>
<TABLE>
===================================================================================================================================
<CAPTION>
American Capital Dividend Value-Added
Value Growth Growth Utilities Market
Series Series Series Series Series
------------------- ----------------- ---------------- ------------------ ------------------
1994 1993(6) 1994 1993(7) 1994 1993(5) 1994 1993(3) 1994 1993(6)
---- ------- ---- ------- ---- ------- ---- ------- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 5,328 $ 1,821 $ 1,166 $ (292) $ 61,861 $ 25,278 $ 31,869 $ 17,729 $ 32,091 $ 1,895
(12,319) 1,962 (602) (697) 4,200 4,082 8,200 936 8,100 531
86,965 4,075 14,095 (13,173) 430,443 38,999 (47,062) 101,806 250,063 6,481
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
79,974 7,858 14,659 (14,162) 496,504 68,359 (6,993) 120,471 290,254 8,907
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
(1,940) -- (760) -- (54,115) (18,005) (30,831) (11,245) (27,069) (1,372)
(3,640) -- -- -- (5,491) -- (936) -- -- --
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
(5,580) -- (760) -- (59,606) (18,005) (31,767) (11,245) (27,069) (1,372)
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
3,006,983 557,136 33,476 48,774 6,190,112 2,339,105 1,601,742 1,125,330 3,831,701 531,581
5,505 -- -- -- 9,909 10,400 31,235 11,233 26,782 1,372
(78,423) (356,897) (2,849) (17) (315,329) (82,920) (96,517) (11,406) (180,682) --
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
2,934,065 200,239 30,627 48,757 5,884,692 2,266,585 1,536,460 1,125,157 3,677,801 532,953
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
3,008,459 208,097 44,526 34,595 6,321,590 2,316,939 1,497,700 1,234,383 3,940,986 540,488
308,097 100,000 134,595 100,000 2,416,939 100,000 1,334,383 100,000 640,488 100,000
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
$3,316,556 $308,097 $179,121 $134,595 $8,738,529 $2,416,939 $2,832,083 $1,334,383 $4,581,474 $640,488
========== ======== ======== ======== ========= ========= ========== ========= ========== ========
283,192 56,269 3,580 5,152 550,156 224,725 144,438 107,573 363,919 53,703
527 -- -- -- 906 986 2,787 1,039 2,532 140
(7,371) (35,619) (296) (2) (28,341) (7,809) (8,623) (1,055) (17,397) --
---------- -------- -------- -------- --------- --------- ---------- --------- ---------- --------
276,348 20,650 3,284 5,150 522,721 217,902 138,602 107,557 349,054 53,843
========== ======== ======== ======== ========= ========= ========== ========= ========== ========
</TABLE>
<PAGE>
<TABLE>
===============================================================================
<CAPTION>
Global
Equity Strategist
Series Series
---------------------- ---------------------
1994 1993(3) 1994 1993(5)
---- ------- ---- -------
<S> <C> <C> <C>
$ 2,454 $ 2,471 $ 9,708 $ 3,634
30 -- 3,831 (9,709)
43,136 (1,870) 33,644 (1,161)
--------- -------- -------- --------
45,620 601 47,183 (7,236)
--------- -------- -------- --------
(3,600) -- (11,000) --
-- -- -- --
--------- -------- -------- --------
(3,600) -- (11,000) --
--------- -------- -------- --------
886,005 225,504 496,699 460,459
3,090 -- 10,831 --
(10,043) (4,000) (117,176) (1,829)
--------- -------- -------- --------
879,052 221,504 390,354 458,630
--------- -------- -------- --------
921,072 222,105 426,537 451,394
322,105 100,000 551,394 100,000
--------- -------- -------- --------
$1,243,177 $322,105 $977,931 $551,394
========== ======== ======== ========
82,521 22,486 49,238 46,260
290 -- 1,082 --
(954) (397) (11,640) (185)
--------- -------- -------- --------
81,857 22,089 38,680 46,075
========== ======== ======== ========
</TABLE>
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
foreign exchange gains/losses included in realized and unrealized gain/loss are
included in or a reduction of ordinary income for federal income tax purposes.
(D) Forward Foreign Currency Exchange Contracts--The Global Equity Series may
enter into forward foreign currency exchange contracts as a hedge against
fluctuations in future foreign exchange rates. All forward contracts are valued
daily at the appropriate exchange rates and any resulting unrealized cur-
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
rency gains or losses are reflected in the accounts of the Series. Realized
gains or losses are recorded on delivery of the currency.
(E) Federal Income Tax Status--It is the Fund's policy to comply individually
for each Series 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.
(F) Dividends and Distributions to Shareholders--The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent 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.
(G) 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.
(H) Expenses--Direct expenses are to be charged to the respective Series and
general corporate expenses are allocated on the basis of relative net assets.
(I) Organizational Expenses--The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of $150,000 ($13,636
allocated to each of the Series).
2. TRANSACTIONS WITH INVESTMENT MANAGER--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, calculated
daily and payable monthly, by applying the annual rate of 0.50% to the net
assets of each of the Liquid Asset Series, U.S. Government Money Market Series
and Value-Added Market Series; by applying the annual rate of 0.65% to the net
assets of each of the U.S. Government Securities Series and Intermediate Income
Securities Series; by applying the annual rate of 0.75% to the net assets of
each of the Dividend Growth Series and Utilities Series; by applying the annual
rate of 0.85% to the net assets of each of the American Value Series, Capital
Growth Series and Strategist Series; and by applying the annual rate of 1.0% to
the net assets of the Global Equity Series, in each case determined as of the
close of each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services,
heat, light, power and other utilities provided to the Fund.
The Investment Manager has undertaken to assume all expenses (except for
brokerage fees and a portion of organizational expenses) for each Series and to
waive the compensation provided for in the Agree-
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
ment for services rendered with respect to each Series of the Fund until such
time as the pertinent Series has $50 million of net assets or until June 30,
1994, whichever occurs first.
The approximate management fees waived and the other expenses assumed by the
Investment Manager for the six months ended January 31, 1994 were as
follows:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S. INTERMEDIATE
LIQUID MONEY GOVERNMENT INCOME AMERICAN CAPITAL
ASSET MARKET SECURITIES SECURITIES VALUE GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Management fees..................... $33,362 $31,364 $42,764 $ 646 $ 3,634 $ 667
Other expenses...................... $20,939 $20,848 $20,965 $20,387 $21,885 $21,369
<CAPTION>
DIVIDEND VALUE-ADDED GLOBAL
GROWTH UTILITIES MARKET EQUITY STRATEGIST
SERIES SERIES SERIES SERIES SERIES
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Management fees..................... $15,626 $ 6,452 $ 6,186 $ 2,720 $ 2,996
Other expenses...................... $27,883 $24,577 $26,825 $22,709 $22,379
</TABLE
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--Purchases and
sales/maturities of portfolio securities, excluding short-term investments
(except for the Liquid Asset and U.S. Government Money Market Series), for the
six months ended January 31, 1994 were as follows:
</TABLE>
<TABLE>
<CAPTION>
Purchases Sales/Maturities
--------- ----------------
<S> <C> <C>
Liquid Asset ........................... $ 7,075,693 $ 6,767,584
U.S. Government Money Market ........... 41,006,126 39,400,985
U.S. Government Securities ............. 631,979 --
Intermediate Income Securities ......... 130,474 90,569
American Value ......................... 3,301,435 174,170
Capital Growth ......................... 37,525 5,000
Dividend Growth ........................ 5,669,899 13,185
Utilities .............................. 1,308,347 53,585
Value-Added Market ..................... 3,607,784 53,105
Global Equity .......................... 152,571 8,252
Strategist ............................. 376,404 151,005
</TABLE>
For the six months ended January 31, 1994, the American Value, Capital
Growth, Dividend Growth, Utilities, Global Equity and Strategist Series
incurred brokerage commissions of $2,421, $44, $5,575, $1,910, $76, and $122,
respectively, with Dean Witter Reynolds Inc., an affiliate of the Investment
Manager, for portfolio transactions executed on behalf of such Series. Included
in the American Value, Dividend Growth and Utilities Series' receivables and
payables for investments sold and purchased are $0 and $685,491; $0 and
$919,470; $0 and $466,145; respectively, for unsettled trades with Dean Witter
Reynolds Inc. at January 31, 1994.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent.
4. DIVIDENDS AND DISTRIBUTIONS--The Liquid Asset and U.S. Government Money
Market Series pay dividends from net investment income (and net short-term
capital gains, if any) to shareholders of record as of the close of business
the preceding business day. The U.S. Government Securities and Intermedi-
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS FOR ALL SERIES (unaudited) (continued)
===============================================================================
ate Income Securities Series declare dividends from net investment income daily
and pay monthly and distribute net realized short-term capital gains, if any,
in excess of any net realized long-term losses, at least annually. The Dividend
Growth, American Value, Utilities and Value-Added Market Series pay dividends
from net investment income and net short-term capital gains, if any, quarterly.
The Capital Growth, Strategist and Global Equity Series pay dividends from net
investment income and net short-term capital gains, if any, annually. Each
Series of the Fund makes distributions from net long-term capital gains, if
any, in excess of any available capital loss carryovers, at least annually.
However, any Series may determine to distribute or to retain all or part of any
long-term capital gains in any year.
5. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK--Forward contracts involve
elements of market risk in excess of the amount reflected in the Statement of
Assets and Liabilities. The Portfolio bears the risk of an unfavorable change
in the foreign exchange rate underlying the forward contract.
6. FEDERAL INCOME TAX STATUS--Any net capital loss incurred after October 31
within the taxable year may, if the Fund elects, be deemed to arise on the
first business day of the Fund's next taxable year. The Capital Growth and
Strategist Series have incurred and will elect to defer such net capital losses
of approximately $700 and $9,700, respectively, during fiscal 1993.
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL HIGHLIGHTS (unaudited)
===================================================================================================================================
Selected data and ratios for a share of beneficial interest outstanding throughout each period:
<CAPTION>
Ratios to
Average Net Assets
Net -----------------------
Asset Realized Total Total
Value, Invest- Unreal- from Divi- Distri- Divi- Net Net
Begin- ment ized Invest- dends butions dends Asset Total Assets, at
Period ning Income Gain ment to to and Value Invest- End of Net Portfolio
Ended of (Loss) (Loss) Opera- Share- Share- Distri- End of ment Period Investment Turnover
July 31 Period --Net --Net tions holders holders butions Period Return(a) (000's) Expenses Income Rate
- ------- ------ ----- ----- ------ ------- ------ ------ ------ --------- ------ -------- ------ ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LIQUID ASSET SERIES (1)
1993 $ 1.00 $0.02 $ -0- $0.02 $(0.02) $ -0- $(0.02) $ 1.00 1.77 % $1,081 0.14%(b)(c) 3.02%(b)(c) N/A
1994(+) 1.00 0.02 -0- 0.02 (0.02) -0- (0.02) 1.00 1.63 1,386 -0- (b)(d) 3.23 (b)(d) N/A
U.S. GOVERNMENT MONEY MARKET SERIES (2)
1993 1.00 0.02 -0- 0.02 (0.02) -0- (0.02) 1.00 0.42 125 2.13 (b)(c) 0.83 (b)(c) N/A
1994(+) 1.00 0.02 -0- 0.02 (0.02) -0- (0.02) 1.00 1.57 1,725 -0- (b)(d) 3.06 (b)(d) N/A
U.S. GOVERNMENT SECURITIES SERIES (3)
1993 10.00 0.19 0.07 0.26 (0.20) -0- (0.20) 10.06 2.60 1,756 0.18 (b)(c) 3.66 (b)(c) 0%
1994(+) 10.06 0.21 -0- 0.21 (0.21) -0- (0.21) 10.07 2.24 2,599 -0- (b)(d) 4.22 (b)(d) 0
INTERMEDIATE INCOME SECURITIES SERIES (4)
1993 10.00 0.19 (0.02) 0.17 (0.19) -0- (0.19) 9.98 1.67 182 1.62 (b)(c) 3.50 (b)(c) 0
1994(+) 9.98 0.31 -0- 0.31 (0.31) -0- (0.31) 9.98 3.11 209 -0- (b)(d) 6.10 (b)(d) 53
AMERICAN VALUE SERIES (6)
1993 10.00 0.06 (0.01) 0.05 -0- -0- -0- 10.05 0.50 308 0.74 (b)(c) 1.10 (b)(c) 121
1994(+) 10.05 (0.02) 0.83 0.81 (0.02) (0.04) (0.06) 10.80 8.12 3,317 -0- (b)(d) 1.25 (b)(d) 20
CAPITAL GROWTH SERIES (7)
1993 10.00 (0.02) (1.10) (1.12) -0- -0- -0- 8.88 (11.20) 135 1.97 (b)(c) (0.47)(b)(c) 2
1994(+) 8.88 0.07 0.81 0.88 (0.04) -0- (0.04) 9.72 9.96 179 -0- (b)(d) 1.49 (b)(d) 3
DIVIDEND GROWTH SERIES (5)
1993 10.00 0.13 0.58 0.71 (0.10) -0- (0.10) 10.61 7.11 2,417 0.16 (b)(c) 2.89 (b)(c) 7
1994(+) 10.61 0.12 1.03 1.15 (0.13) (0.01) (0.14) 11.64 11.08 8,739 -0- (b)(d) 2.97 (b)(d) 0
UTILITIES SERIES (3)
1993 10.00 0.19 1.30 1.49 (0.14) -0- (0.14) 11.35 14.98 1,334 0.30 (b)(c) 3.79 (b)(c) 8
1994(+) 11.35 0.17 (0.26) (0.09) (0.20) -0- (0.20) 11.06 (0.77) 2,832 -0- (b)(d) 3.70 (b)(d) 4
VALUE-ADDED MARKET SERIES (6)
1993 10.00 0.05 0.02 0.07 (0.04) -0- (0.04) 10.03 0.71 640 0.92 (b)(c) 1.42 (b)(c) 1
1994(+) 10.03 0.11 1.07 1.18 (0.11) -0- (0.11) 11.10 11.81 4,581 -0- (b)(d) 2.59 (b)(d) 2
(Table continued on following page)
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL HIGHLIGHTS (unaudited) (continued)
===================================================================================================================================
<CAPTION>
Ratios to
Average Net Assets
Net -----------------------
Asset Realized Total Total
Value, Invest- Unreal- from Divi- Distri- Divi- Net Net
Begin- ment ized Invest- dends butions dends Asset Total Assets, at
Period ning Income Gain ment to to and Value, Invest- End of Net Portfolio
Ended of (Loss) (Loss) Opera- Share- Share- Distri- End of ment Peirod Investment Turnover
July 31 Period --Net --Net tions holders holders butions Period Return(a) (000's) Expenses Income Rate
- ------- ------ ----- ----- ------ ------- ------ ------ ------ --------- ------ -------- ------ ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GLOBAL EQUITY SERIES (3)
1993 $10.00 $0.07 $(0.03) $0.04 -0- -0- -0- $10.04 0.40 % $ 322 1.00%(b)(c) 1.77%(b)(c) 0%
1994(+) 10.04 (0.02) 0.94 0.92 (0.05) -0- (0.05) 10.91 9.14 1,243 -0- (b)(d) 3.13 (b)(d) 2
STRATEGIST SERIES (5)
1993 10.00 0.06 (0.23) (0.17) -0- -0- -0- 9.83 (1.70) 551 0.64 (b)(c) 1.67 (b)(c) 26
1994(+) 9.83 0.09 0.53 0.62 (0.13) -0- (0.13) 10.32 6.30 978 -0- (b)(d) 2.75 (b)(d) 25
<FN>
- ------------
Commencement of operations:
(1) December 30, 1992
(2) January 20, 1993
(3) January 8, 1993
(4) January 12, 1993
(5) January 7, 1993
(6) February 1, 1993
(7) February 2, 1993
(+) August 1, 1993 through January 31, 1994
(a) Not annualized.
(b) Annualized.
(c) If the Fund had borne all its expenses that were assumed or waived by the Investment Manager, the above annualized expense
ratio, after application of the Fund's state expense limitation, and the above annualized net investment income (loss) ratio
would have been 1.30% and 0.53% for the Liquid Asset Series, 2.50% and (0.95)% for the U.S. Government Money Market Series,
1.81% and 0.33% for the U.S. Government Securities Series, 2.50% and 1.00% for the Intermediate Income Securities Series,
2.50% and (0.66)% for the American Value Series, 2.50% and (1.01)% for the Capital Growth Series, 2.50% and 0.61% for the
Dividend Growth Series, 2.50% and 1.59% for the Utilities Series, 2.50% and (0.16)% for the Value-Added Market Series, 2.50%
and (0.90)% for the Global Equity Series and 2.50% and (0.19)% for the Strategist Series.
(d) If the Fund had borne all its expenses that were assumed or waived by the Investment Manager, the above annualized expense
ratio, after application of the Fund's state expense limitation, and the above annualized net investment income (loss) ratio
would have been 2.50% and (1.70)% for the Liquid Asset Series, 2.50% and (1.87)% for the U.S. Government Money Market Series,
2.50% and (1.43)% for the U.S. Government Securities Series, 2.50% and 3.62% for the Intermediate Income Series, 2.50% and
(1.23)% for the American Value Series, 2.50% and (1.01)% for the Capital Growth Series, 2.09% and 0.88% for the Dividend Growth
Series, 2.50% and 1.20% for the Utilities Series, 2.50% and 0.09% for the Value-Added Market Series, 2.50% and (1.60)% for the
Global Equity Series and 2.50% and 0.26% for the Strategist Series.
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
Thomas F. Caloia
Treasurer
CUSTODIAN
The Bank of New York
110 Washington Street
New York, New York 10286
TRANSFER AGENT AND DIVIDEND
AND DISBURSING AGENT
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
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.
SEMIANNUAL REPORT
JANUARY 31, 1994
DEAN WITTER
RETIREMENT SERIES
