<PAGE>
DEAN WITTER RETIREMENT SERIES
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- -----------------------------------------------------------------------------
The factors that adversely affected the financial markets during 1994--an
overheated economy, rising interest rates and inflation--reversed themselves
and helped both the stock and bond markets move higher in 1995. Evidence of a
slowing U.S. economy without a recession and a peaking of inflation, combined
with an easing move by the Federal Reserve Board, have sent the markets to
new highs. Moreover, in contrast with last year, the U.S. stock market
advance has been very broad, with all industries participating and all
capitalization sectors (large, medium and small companies) rising.
New factory orders continued to buoy production early this year, despite
evidence of a slowdown in inventory building. Gains in productivity, which
rose at a 3 percent annual rate in the second quarter, continued to sustain
corporate earnings, even as economic expectations became more subdued.
Globally, the U.S. market was the beneficiary of a "flight to quality," as
the Mexican financial crisis triggered declines in other emerging markets
worldwide.
Led by technology and financial stocks, the U.S. equity market scaled new
heights during the first seven months of 1995, increasing an impressive 24.71
percent, as measured by the Dow Jones Industrial Average (the Standard &
Poor's 500 Composite Stock Price Index and NASDAQ Composite Index increased
24.28 and 33.15 percent, respectively). Clearly, the bulls had much to
celebrate: the expectation of slower U.S. growth (without a recession), the
ongoing containment of inflation, continued corporate profit increases, a
proposed balanced budget bill, slower growth overseas, a strengthening U.S.
dollar and the conviction that the Federal Reserve Board's work may be done
for this cycle.
At some point, the market should pull up for a breather as both
individuals and institutions rush to take some profits. Still, barring
seriously negative news on the economic front or in the bond market, the
foundation for a continued strong domestic equity market remains in place as
the housing sector responds to lower interest rates, business
fixed-investment remains vigorous and work is done in Washington, D.C. to
lower the U.S. trade deficit.
INTEREST RATES DECLINE
After suffering sharp declines in 1994 as interest rates rose
significantly, the fixed-income markets began to show signs of life in the
fourth quarter of 1994 and started a full-scale rebound during the first
quarter of 1995. By the end of the first quarter, the yield on the 2-year
U.S. Treasury note had declined to 6.79 percent from 7.71 percent at year end
1994, while the 30-year U.S. Treasury bond was yielding 7.43 percent, down
from 7.88 percent at year end.
The bond market rally continued through the second quarter of 1995. Yields
on intermediate- and long-term bonds declined to levels not seen since before
the Federal Reserve Board began its restrictive monetary policy in February
1994. As of July 31, 1995, the yield on the 30-year U.S. Treasury bond was
6.86 percent. On the short-term end of the maturity spectrum, rates have
remained in line with the federal-funds target rate, which stood at 6.00
percent on June 30, but was cut to 5.75 percent on July 6. On July 31, 1995,
the 2-year U.S. Treasury note was yielding 5.88 percent. Much of the bond
market's strength during the first half of 1995 can be attributed to the
continued perception of an economic
<PAGE>
slowdown, as employment, housing starts and automobile sales all declined. At
this point, it appears that the Federal Reserve Board may have successfully
orchestrated a "soft landing," which suggests that the economy is growing
quickly enough to avoid recession, yet not so rapidly that inflationary
pressure becomes a major issue.
International bond markets also rallied during the period, partly in
sympathy with the U.S. bond market, but also because of subdued inflation and
slowing worldwide economic growth. In Europe, the southern countries, namely
Spain and Italy, boasted the best-performing bond markets. In Italy, for
example, 10-year yields moved from a high of 13.45 percent to a low of 12.00
percent. In Japan, 10-year yields were down to a low of nearly 3 percent from
a high of nearly 5 percent earlier in the year.
Looking ahead, today's low interest rates could re-ignite the economy,
especially in such interest-rate sensitive areas as housing. Should this
occur during the second half of the year, interest rates could again edge
upward. Inflation has accelerated relative to 1994 and is projected to be
pushed forward by continued economic growth and the U.S. dollar's lower value
versus other key currencies, particularly the deutschemark and yen. Interest
rates in the money markets will probably remain at or near current levels. In
the bond markets, however, yields that reacted too negatively in 1994 and too
positively in the first half of 1995 may adjust upward later in the year.
AN IMPROVING GLOBAL CLIMATE
Slowing growth, diminishing pressure on inflation and bond market
rallies--the underlying factors which have been driving the advance of the
U.S. stock market for the past six months--are being repeated in the core
European markets (Germany, France, the Netherlands), suggesting stronger
performance ahead. In Japan, the Kobe earthquake, a weak and indecisive
government and a strong yen were among the factors which drove the Nikkei
back to its August 1992 low. Very slow growth is anticipated in Japan for the
remainder of fiscal 1995. We believe the Japanese stock market is close to
exhaustion, with substantial bearish expectations reflected in current stock
prices. It would not be surprising to see a sharp rally when the bottom is
reached.
Following excessive pessimism and sharp corrections in the first three
months of 1995, the emerging markets of Latin America stabilized and sharply
rebounded off their first-quarter lows. Despite the currency turmoil that
resulted from the situation in Mexico, the emerging economies of South
America generally appear intact, led by Chile, Peru and Brazil. Mexico, which
as recently as last November was expected to have strong growth and
single-digit inflation, is mired in a severe recession with inflation
expected to exceed 50 percent this year. However, in what is a promising sign
for Latin America as a whole, Mexico's economic stabilization program has
shown significant progress in reducing monthly inflation and in reversing the
country's trade deficit.
With moderating growth and prospects of lower interest rates in the major
economies, the emerging markets of Southeast Asia (which tend to be
dollar-linked) have stabilized, witnessed sharp rallies and seem to be
forming a base for strong performance going forward. With increased liquidity
in the global financial markets, as well as an expected improvement in
earnings growth in 1996, the Asian markets can also look forward to an
improved environment over the next six months. Overall, while we cannot rule
out short-term volatility, we believe that the emerging markets of the world
continue to offer attractive longer-term investment opportunities.
<PAGE>
LIQUID ASSET SERIES/U.S. GOVERNMENT MONEY MARKET SERIES
As of July 31, 1995, the U.S. Government Money Market Series had assets of
approximately $11 million with an average maturity of 48 days. This Series'
net yield for the twelve months ended July 31 was 6.12 percent.
For the same time period, assets in the Liquid Asset Series increased to
$35.6 million with an average maturity of 54 days. This Series' net yield for
the twelve months ended July 31 was 6.12 percent.
While rates available to these money market portfolios rose during the
second half of 1994, the first half of 1995 brought stable and slightly
declining yield levels. The yield on three-month U.S. Treasury bills rose
from 4.25 percent in early July 1994, to over 5.50 percent by late December.
They remained rather stable during the first five months of 1995, then
declined to 5.40 percent by late July.
On July 31, 1995, almost all of the U.S. Government Money Market Series
portfolio was invested in federal agency obligations with less than one
percent invested in U.S. Treasury bills. More than 75 percent of the Series'
assets were due to mature in less than three months.
In the Liquid Asset Series, 74 percent of the portfolio was invested in
first tier commercial paper, 12 percent in bankers' acceptances, 6 percent in
short-term bank notes with the remaining 8 percent invested in Federal agency
obligations. Almost 90 percent of the assets were due to mature within three
months.
We continue to operate the portfolios in a straight-forward, conservative
style without "structured notes" or derivatives.
Looking ahead, recent economic indicators have shown mixed signals as to
the pace of economic activity. We believe that the Federal Reserve will want
to see a sustained confirmation of weak economic trends before taking further
actions to reduce short-term rates. The money market yield curve had a
positive, upward slope during 1994, but became flatter and mildly
negatively-sloped in May through July of 1995. This means that the consensus
opinion in the money market was anticipating lower yield levels for later in
1995.
U.S. GOVERNMENT SECURITIES SERIES
U. S. Government Securities Series invests in a diversified portfolio of
obligations issued and/or guaranteed, as to principal and interest, by the
U.S. government. For the fiscal year ended July 31, 1995, the Series posted a
total return of 7.72 percent, including income distributions totaling $0.56
per share. On July 31, 1995, the Series' net assets totaled $4.2 million. The
accompanying chart illustrates the performance of a $10,000 investment in the
Series from inception (January 8, 1993) through the fiscal year-ended July
31, 1995, versus the performance of a similar investment in the Lehman
Brothers General U.S. Government Index.
DEAN WITTER RETIREMENT SERIES
U.S. Government Securities Series
<TABLE>
<CAPTION>
GROWTH OF $10,000
DATE TOTAL LEHMAN BROTHERS
GENERAL US GOVT INDEX
<S> <C> <C>
- -------------------------------------------------------------------------------
January 8, 1993 $10,000 $10,000
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July 31, 1993 $10,260 $10,595
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July 31, 1994 $10,188 $10,581
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July 31, 1995 $10,975 $11,600
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</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
7.72%(1) 3.70%(1)
_____ Fund _____ Lehman (2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The Lehman Brothers General U.S. Government Index is a broad-
based, unmanaged measure of all U.S. Government and U.S.
Treasury Securities. The Index does not include any expenses, fees or
charges.
On July 31, 1995, mortgage-backed securities comprised 45.8 percent of net
assets, zero-coupon strips comprised 52.2 percent and U.S. Treasuries
comprised 25.1 percent. During the reporting period, the average maturity of
the portfolio was gradually extended to its current level of 5.1 years as
attractive investment opportunities became available. This enabled the Series
to provide a competitive level of income as well as capital appreciation.
While this strategy has proven successful in 1995, further adjustments to the
Series' average maturity will be made as conditions warrant.
Looking ahead, as the Series continues to grow, additional mortgage-backed
securities will be added to the portfolio as conditions warrant. This should
not only increase the Series' income stream, but also improve its total
return potential.
INTERMEDIATE INCOME SECURITIES SERIES
Intermediate Income Securities invests pri- marily in intermediate-term,
investment grade fixed-income securities. For the fiscal year, the Series
produced a total return of 9.22 percent. On July 31, 1995, the Series' net
assets exceeded $993 thousand. The accompanying chart illustrates the
performance of a $10,000 investment in the Series from inception (January 12,
1993) through the fiscal year-ended July 31, 1995, versus the performance of
a similar investment in the Lehman Brothers Intermediate Investment Grade
Debt Index.
DEAN WITTER RETIREMENT SERIES
Intermediate Income Securities Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL LEHMAN INTMEDIATE
INVESTMENT GRADE DEBT INDEX
<S> <C> <C>
- -------------------------------------------------------------------------------
January 12, 1993 $10,000 $10,000
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July 31, 1993 $10,167 $10,720
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July 31, 1994 $10,194 $10,724
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July 31, 1994 $11,134 $12,009
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</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
9.22% (1) 4.31% (1)
_____ Fund _____ LEHMAN(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The Lehman Brothers Intermediate Investment Grade Debt Index is
an unmanaged index of 5 to 10 year investment-grade corporate debt
securities.
From July 31, 1994 to July 31, 1995, interest rates on intermediate-term
U.S. Treasury securities declined by 0.10 percentage points to 0.70
percentage points. After six months of a robust economy and related
inflationary fears sent interest rates climbing by as much as 1.25 percentage
points, sentiment shifted with the market focusing on actual inflation or
rather its absence. By early February, not only had inflation failed to
surface, but the economy was beginning to show signs of weakening. Interest
rates began to fall and eventually plummeted by 1.50 percentage points to
1.75 percentage points from their January 31, 1995 levels, before retracing
about one-quarter of that move in July.
The Series' positive total return over the past twelve months was
reflective of a decline in interest rates during the second half of the
fiscal year, a slightly longer duration and a greater emphasis on corporate
bond holdings. Timely investment of reserves during the first six months of
the period also contributed to the Series' performance. U.S. Treasury notes
and bonds accounted for 62 percent of the portfolio on July 31, 1995, with
corporate bonds accounting for the remaining 38 percent of the portfolio. On
July 31, 1995, the average maturity was 4.31 percent and the average duration
was 3.4 years. The average quality rating was AA3.
AMERICAN VALUE SERIES
American Value Series invests primarily in equity issues which represent
industries that at the time of investment are believed to have the most
attractive earnings potential. For the fiscal year ended July 31, 1995, the
Series posted a
<PAGE>
total return of 33.48 percent compared to a return of 26.05 percent for the
S&P 500 Index and a return of 24.8 percent for the average growth fund,
according to Lipper Analytical Services, Inc. On July 31, 1995, the Series'
net assets exceeded $22.5 million.
As the U.S. economy slowed during the first half of 1995, market
leadership shifted from the economically sensitive industries which had been
most dominant in 1994 to the growth groups that will likely continue to post
fifteen percent earnings growth notwithstanding a slowdown in overall
corporate profits to ten percent or less.
In anticipation of this leadership change, the Series began to rotate in
the fourth quarter of 1994, with an emphasis on four principal sectors:
technology (computer software, semiconductors and semiconductor capital
equipment); interest sensitive (banks, insurance and financial
miscellaneous); services (media, entertainment, lodging and consumer/business
services); and health care (drugs and medical supply). The Series also
maintained some commitments in select cyclical groups that had attractive
supply/demand characteristics (aluminum, paper and agricultural).
DEAN WITTER RETIREMENT SERIES
American Value Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
<S> <C> <C>
- -------------------------------------------------------------------------------
February 1, 1993 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $10,050 $10,271
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July 31, 1994 $ 9,990 $10,801
- -------------------------------------------------------------------------------
July 31, 1995 $13,335 $13,615
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</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
33.48%(1) 12.24%(1)
_____ Fund _____ S&P 500(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
The accompanying chart illustrates the performance of a $10,000 investment
in the Series from inception (February 1, 1993) through the fiscal year-ended
July 31, 1995, versus the performance of a similar hypothetical investment in
the issues that comprise the S&P 500 Index.
CAPITAL GROWTH SERIES
Capital Growth Series utilizes a computerized screening process to select
equities offering the potential for long-term capital growth. For the fiscal
year ended July 31, 1995, the Series produced a total return of 20.08
percent, compared to a return of 26.05 percent for the S&P 500. The Series'
underperformance compared to the broad market was largely due to its omission
of smaller- capitalization and technology stocks. Very few stocks in these
areas are able to meet the Fund's rigid screening process. The accompanying
chart illustrates the performance of a $10,000 investment in the Series from
inception (February 2, 1993) through the fiscal year-ended July 31, 1995,
versus the performance of a similar hypothetical investment in the issues
that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
Capital Growth Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
<S> <C> <C>
- -------------------------------------------------------------------------------
February 2, 1993 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $ 8,880 $10,271
- -------------------------------------------------------------------------------
July 31, 1994 $ 9,463 $10,800
- -------------------------------------------------------------------------------
July 31, 1995 $11,363 $13,614
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
20.08%(1) 5.27%(1)
_____ Fund _____ S&P 500(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
<PAGE>
Net assets of the Series exceeded $677 thousand on July 31, 1995. Since
the Series' inception, a very rigid screening process has been used to
determine what stocks would be eligible for purchase and retention in the
portfolio. On July 31, 1995, the Series owned forty-four equity issues spread
among thirty-four different industry groups.
During the reporting period, the screening process has dictated the
addition of five new stock positions to the portfolio and the deletion of
four previous holdings. Computer Associates, Microsoft Corp., Brinker
International, Barrick Gold and Sherwin-Williams were added to the portfolio.
Dillard Department Stores (Class A), Block Drugs (Class A), J.M. Smucker and
EG&G Inc. were sold from the portfolio.
DIVIDEND GROWTH SERIES
Dividend Growth Series invests primarily in equity issues of companies
with consistent records of paying dividends and the potential for increasing
dividends. For the fiscal year ended July 31, 1995, the Series produced a
total return of 23.07 percent, compared to a return of 26.05 percent for the
S&P 500 Index. The Series' underperformance of the broad market index was in
large part due to the exceptional strength in small- capitalization stocks
late in the period, in particular technology, a sector which affords little
or no current yield. The accompanying chart illustrates the performance of a
$10,000 investment in the Series from inception (January 7, 1993) through the
fiscal year-ended July 31, 1995, versus the performance of a similar
hypothetical investment in the issues that comprise the S&P 500 Index.
On July 31, 1995, the Series' net assets totaled approximately $35.4
million. Since the Series' inception, we have employed a proprietary
screening process to assist in building the portfolio of common stocks. As of
July 31, the Series owned thirty-four equity issues spread among twenty-eight
different industry groups.
DEAN WITTER RETIREMENT SERIES
Dividend Growth Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
<S> <C> <C>
- -------------------------------------------------------------------------------
January 7, 1993 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $10,711 $10,577
- -------------------------------------------------------------------------------
July 31, 1994 $11,368 $11,122
- -------------------------------------------------------------------------------
July 31, 1995 $13,991 $14,020
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
23.07%(1) 14.02%(1)
_____ Fund _____ S&P 500(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
The proprietary screening process has led us to add three new positions to
the portfolio. New positions were established in Sprint Corp., International
Business Machines (IBM) and Deere & Co. There were no other changes made to
the portfolio during the fiscal year.
UTILITIES SERIES
Utilities Series seeks to provide current income and long-term growth of
income and capital by investing primarily in stocks and bonds of companies in
the public utilities industry. The combination of lower interest rates and
improving fundamentals in the electric and telecommunication sectors provided
the underlying force for the Series to produce a total return of 12.16
percent for the fiscal year ended July 31, 1995. During the reporting period,
the Series' net assets continued its steady growth ending the period with
approximately $5.4 million. The accompanying chart illustrates the
performance of a $10,000 investment in the Series from inception (January 8,
1993) through the fiscal year-ended July 31, 1995, versus the performance of
a similar hypothetical investment in the issues that comprise the S&P 500
Index.
DEAN WITTER RETIREMENT SERIES
Utilities Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
<S> <C> <C>
- -------------------------------------------------------------------------------
January 8, 1993 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $11,498 $10,618
- -------------------------------------------------------------------------------
July 31, 1994 $10,896 $11,166
- -------------------------------------------------------------------------------
July 31, 1995 $12,221 $14,075
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
12.16%(1) 8.16%(1)
_____ Fund _____ S&P 500(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
Throughout fiscal 1995, the Series maintained its balanced allocation
among electric utility and telecommunications investments. With electric
utilities providing above-average income, the portfolio of telecommunications
securities offer greater capital appreciation opportunities as deregulation,
restructuring and global reach are reflected in their operating results. On
July 31, 1995, the Series was 85.4 percent invested with equity assets
allocated among electric utilities (34.1 percent), telecommunications (33.4
percent), natural gas (13.1 percent) and other (4.8 percent). Fixed- income
investments accounted for 1.8 percent of net assets. Diversification of the
portfolio is greatly enhanced by the employing of foreign securities which
focused on the telecommunications area and accounted for 9.7 percent of the
Series' net assets.
VALUE-ADDED MARKET SERIES
Value-Added Market Series invests, on an equally-weighted basis, in a
diversified portfolio of stocks issued by companies that are represented in
the S&P 500. For the fiscal year ended July 31, 1995, the Series produced a
total return of 22.65 percent versus 26.05 percent for the S&P 500. On July
31, 1995, the Series' net assets totaled about $14.1 million.
The Series is index-oriented, investing in stocks that comprise its
benchmark index, the S&P 500 Index. Unlike the S&P 500, however, the Series
equally weights all stock positions, thereby emphasizing the stocks of small-
and mid-sized companies which historically have outperformed
larger-capitalized companies. While the Series registered strong returns for
the most recent seven- and twelve-month periods, the results were
overshadowed by the S&P 500 Index. During this period, the S&P 500's
performance was driven by large capitalization multinationals, as well as
stocks in the technology and financial sectors, all of which are more heavily
weighted in the Index than in the Series.
The accompanying chart illustrates the growth of a $10,000 investment in
the Series from inception (February 1, 1993) through the fiscal year- ended
July 31, 1995, versus the performance of a similar hypothetical investment in
the issues that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
Value-Added Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500
<S> <C> <C>
- -------------------------------------------------------------------------------
February 1, 1993 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $10,071 $10,271
- -------------------------------------------------------------------------------
July 31, 1994 $10,967 $10,801
- -------------------------------------------------------------------------------
July 31, 1995 $13,450 $13,615
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
22.65%(1) 12.63%(1)
_____ FUND _____ S&P 500(2)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
GLOBAL EQUITY SERIES
Global Equity Series invests in a broad range of securities of both
domestic and foreign companies, governments and international organizations.
For the fiscal year ended July 31, 1995, the Series produced a total return
of 6.08 percent. On July 31, 1995, the Series' net assets exceeded $7.2
million. The accompanying chart illustrates the performance of a $10,000
investment in the Series from inception (January 8, 1993) through the fiscal
year-ended July 31, 1995, versus the performance of a similar hypothetical
investment in the issues that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
Global Equity Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500 MSCI WORLD IX
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
January 8, 1993 $10,000 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $10,040 $10,618 $11,818
- -------------------------------------------------------------------------------
July 31, 1994 $10,697 $11,166 $12,797
- -------------------------------------------------------------------------------
July 31, 1995 $11,347 $14,075 $14,346
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
6.08%(1) 5.07%(1)
_____ Fund _____ S&P 500(2) _____ MSCI WORLD IX(3)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common stocks. The index
does not include any expenses, fees or charges.
(3) The Morgan Stanley Capital International World Index (MSCI)
measures performance for a diverse range of global stock markets
including the U.S., Canada, Europe, Australia, New Zealand and the Far
East. The index does not include any expenses, fees or charges or
reinvestment of dividends.
After posting positive results during the first three months of the fiscal
year, all of the world markets declined in November, with many continuing to
drop well into December and January. Behind this negative movement in the
international markets, particularly the emerging markets of Latin America and
the Pacific Basin, was the immediate and lingering impact of the December
1994 Mexican currency crisis.
During the second half of the fiscal year, the Series' performance was
buoyed by strong performance in the U.S. and European markets, as well as by
the emerging markets which rebounded during the second quarter of 1995.
Somewhat offsetting these positive results was the Japanese market which
continued to sink to new lows. The Series portfolio allocation is targeted
38.6 percent in the Americas, 32 percent in Europe and the remaining 28.7
percent in the Pacific Basin.
Going forward, with the same factors in place in Europe that have driven
the U.S. markets to record highs, with Japan's stock market poised for a
potential rebound and with the emerging markets of Latin America generally on
a more stable road to growth, we believe the Series is well positioned to
participate in significant growth opportunities in the near term.
STRATEGIST SERIES
Strategist Series seeks to maximize total return by actively allocating
its assets among the major asset categories of equity, fixed-income
securities and money market instruments. For the fiscal year ended July 31,
1995, the Series provided a total return of 18.21 percent versus 26.05
percent for the Standard & Poor's 500 Index and 10.13 percent for the Lehman
Brothers Government/Corporate Bond Index. As of July 31, 1995, the Series'
total net assets exceeded $6.7 million. The accompanying chart illustrates
the performance of a $10,000 investment in the Series from inception (January
7, 1993) through the fiscal year-ended July 31, 1995, versus the performance
of a similar hypothetical investment in the issues that comprise the S&P 500
Index.
<PAGE>
DEAN WITTER RETIREMENT SERIES
Strategist Series
GROWTH OF $10,000
<TABLE>
<CAPTION>
DATE TOTAL S&P 500 LEHMAN
<S> <C> <C> <C>
- -------------------------------------------------------------------------------
January 7, 1993 $10,000 $10,000 $10,000
- -------------------------------------------------------------------------------
July 31, 1993 $ 9,830 $10,577 $10,619
- -------------------------------------------------------------------------------
July 31, 1994 $ 9,842 $11,122 $10,603
- -------------------------------------------------------------------------------
July 31, 1995 $11,634 $14,020 $11,677
- -------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR LIFE OF FUND
18.21%(1) 6.09%(1)
_____ Fund _____ S&P 500(2) _____ LEHMAN GOVT./CORP BD IX(3)
Past performance is not predictive of future returns.
________________________________________
(1) Total return figures shown assume reinvestment of all distributions.
(2) The S&P 500 is a broad-based index, the performance of which is based on
the average performance of 500 widely held common
stocks. The index does not include any expenses, fees or charges.
(3) The Lehman Brothers Government/Corporate Bond Index tracks the
performance of government and corporate obligations, including U.S.
government agency and U.S. treasury securities and corporate and yankee
bonds, with maturities of one to ten years.
The Series shifted its investment mix twice during the past fiscal year,
partially in response to economic climate described in the overview, but also
to take some profits during the impressive equity market rally in 1995. On
July 31, 1995, the Series' asset allocation stood at 51.5 percent stocks,
40.6 percent bonds and 7.0 percent money market investments.
The equity sector strategy changed with the economy's slowdown and the
lack of pricing power for a number of basic material and consumer products
companies, making such industries as chemicals, steel and autos less
attractive while financials, technology and consumer staples began to appear
as better values. As we enter fiscal 1996, industry overweights include
financials, such as regional and money-center banks; technology, such as
software and component companies; and consumer staples, specifically
pharmaceuticals and health care providers. Long-term themes which we feel
will continue to fuel portfolio performance include a strong global demand
for U.S. computing technology, the sustained growth of U.S. exports around
the world, and a new cycle of pharmaceutical product introductions sparked by
heavily funded research and development budgets by drug companies. Therefore,
companies we have added or maintained in our portfolio include Intel Corp.
and Micron Technology, Inc. (semiconductors), Boeing Co. (aircraft), and
Abbott Laboratories and American Home Products Corp. (pharmaceuticals), among
others.
The bond portfolio shifted from a relatively aggressive underweight in the
U.S. government issues and an overweight in non-U.S. bonds to a more neutral
mix (as compared to the Lehman Government/Corporate Bond Index). As of July
31, 1995, the portfolio held approximately 31 percent of its assets in U.S.
government bonds and approximately 17 percent in corporate issues. Non-U.S.
issues were reduced to allow for the build-up in the government weighting.
The portfolio's maturity concentration continued in the 10-15 year portion of
the yield curve, where attractive yields can be obtained with less volatility
than the 20-30 year sector. All fixed-income investments were investment
grade.
The outlook for the year ahead appears favorable to us, with the economy
continuing to grow moderately (2 percent to 4 percent), inflation stabilizing
slightly above current levels (2 1/2 percent to 3 1/2 percent), corporate
earnings resuming double digit growth and favorable fiscal and monetary
policies. The Series maintains its nearly fully invested allocation to stocks
and bonds.
We appreciate your continued support of Dean Witter Retirement Series and
look forward to serving your investment needs.
Very truly yours,
/s/ Charles A. Fiumefreddo
------------------------------
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
DEAN WITTER RETIREMENT SERIES--LIQUID ASSET
PORTFOLIO OF INVESTMENTS July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED YIELD
AMOUNT (IN ON DATE OF
THOUSANDS PURCHASE MATURITY DATE VALUE
- ----------- ---------------- -------------------- ------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (73.3%)
AUTOMOTIVE FINANCE (6.3%)
$1,130 Ford Motor Credit Co. ............................. 5.77 to 6.16% 08/14/95 to 09/21/95 $ 1,125,013
1,125 General Motors Acceptance Corp. ................... 5.89 to 6.17 09/05/95 to 10/04/95 1,116,597
------------
2,241,610
------------
BANK HOLDING COMPANIES (14.1%)
1,300 BankAmerica Corp. ................................. 5.75 09/22/95 1,289,316
1,200 Barnett Banks, Inc. ............................... 5.81 08/09/95 1,198,459
850 Chemical Banking Corp. ............................ 5.77 09/08/95 844,904
1,400 First Chicago Corp. ............................... 5.76 12/26/95 1,367,872
325 NationsBank Corp. ................................. 6.34 09/18/95 322,339
------------
5,022,890
------------
BANKS - COMMERCIAL (16.0%)
450 Abbey National North America Corp. ................ 6.02 08/07/95 449,555
1,500 Canadian Imperial Holdings, Inc. .................. 5.79 09/25/95 1,486,869
850 Dresdner U.S. Finance Inc. ........................ 5.79 09/12/95 844,347
1,200 National Australia Funding (Del.) Inc. ............ 5.73 10/11/95 1,186,628
1,000 National Westminster Bancorp Inc. ................. 5.86 09/07/95 994,039
750 Toronto-Dominion Holdings USA Inc. ................ 5.93 09/21/95 743,806
------------
5,705,244
------------
CHEMICALS (1.3%)
475 Monsanto Co. ...................................... 6.14 09/12/95 471,675
------------
DRUGS (0.7%)
250 Warner-Lambert Co. ................................ 5.83 12/22/95 244,389
------------
FINANCE - COMMERCIAL (1.4%)
500 CIT Group Holdings, Inc. .......................... 6.05 08/11/95 499,172
------------
FINANCE - CONSUMER (4.4%)
1,175 American Express Credit Corp. ..................... 5.84 to 6.21 08/09/95 to 12/08/95 1,164,876
400 Household Finance Corp. ........................... 6.14 08/23/95 398,528
------------
1,563,404
------------
FINANCE - CORPORATE (3.3%)
1,200 Ciesco, L.P. ...................................... 5.71 10/19/95 1,185,188
------------
FINANCE - DIVERSIFIED (3.1%)
1,125 General Electric Capital Corp. .................... 5.88 to 6.16 08/18/95 to 08/22/95 1,121,454
------------
FINANCE - EQUIPMENT (2.6%)
950 Deere (John) Capital Corp. ........................ 5.94 11/13/95 934,137
------------
FOOD & BEVERAGES (1.1%)
300 Nestle Capital Corp. .............................. 5.91 11/08/95 295,256
100 PepsiCo, Inc. ..................................... 6.38 10/31/95 98,445
------------
393,701
------------
HEALTH CARE DIVERSIFIED (1.0%)
350 SmithKline Beecham Corp. .......................... 6.24 08/10/95 349,466
------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Liquid Asset
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED YIELD
AMOUNT (IN ON DATE OF
THOUSANDS PURCHASE MATURITY DATE VALUE
- ----------- ---------------- -------------------- ------------
<C> <S> <C> <C> <C>
OFFICE EQUIPMENT (6.9%)
$ 750 Hewlett-Packard Co. ............................... 6.05% 08/22/95 $ 747,375
500 IBM Credit Corp. .................................. 5.78 08/14/95 498,962
1,200 Xerox Credit Corp. ................................ 5.76 to 6.10 08/03/95 to 08/18/95 1,197,469
------------
2,443,806
------------
RETAIL (4.1%)
1,475 Sears Roebuck Acceptance Corp. .................... 5.76 to 6.03 08/28/95 to 11/22/95 1,460,188
------------
TELECOMMUNICATIONS (2.5%)
400 AT&T Corp. ........................................ 6.15 09/01/95 397,930
500 Southwestern Bell Telephone Co. ................... 6.09 08/15/95 498,837
------------
896,767
------------
UTILITIES (4.5%)
1,600 National Rural Utilities Cooperative Finance Corp. 5.78 to 5.83 08/16/95 to 08/24/95 1,595,774
------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $26,128,865)..................................... 26,128,865
------------
BANKERS' ACCEPTANCES (12.4%)
1,500 First Bank N.A. ................................... 5.76 to 5.78 08/21/95 to 10/06/95 1,487,989
1,000 First Union National Bank ......................... 5.72 11/21/95 982,578
1,000 Mellon Bank, N.A. ................................. 5.75 01/05/96 975,578
1,000 Seattle First National Bank ....................... 5.88 11/30/95 980,673
------------
TOTAL BANKERS' ACCEPTANCES (AMORTIZED COST $4,426,818) ................................. 4,426,818
------------
U.S. GOVERNMENT AGENCIES (8.3%)
2,690 Federal Home Loan Mortgage Corp. .................. 5.75 08/01/95 2,690,000
250 Federal National Mortgage Association ............. 5.84 10/31/95 246,398
------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $2,936,398) ........................................................... 2,936,398
------------
SHORT-TERM BANK NOTES (6.0%)
1,300 La Salle National Bank ............................ 5.75 10/27/95 1,300,000
850 Wachovia Bank of N.C. ............................. 5.78 09/01/95 850,000
------------
TOTAL SHORT-TERM BANK NOTES (AMORTIZED COST $2,150,000) ................................ 2,150,000
------------
TOTAL INVESTMENTS (AMORTIZED COST $35,642,081) (A) ................ 100.0% 35,642,081
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS .................... 0.0 (10,908)
------ ------------
NET ASSETS......................................................... 100.0% $35,631,173
====== ============
</TABLE>
(a) Cost is the same for federal income tax purposes.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--U.S. GOVERNMENT MONEY MARKET
PORTFOLIO OF INVESTMENTS July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT (IN YIELD ON DATE
THOUSANDS) OF PURCHASE MATURITY DATE VALUE
- ----------- -------------- -------------------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATION (0.2%)
$ 20 U.S. Treasury Bill (Amortized Cost $19,844) 5.86% 09/21/95 $ 19,844
------------
U.S. GOVERNMENT AGENCIES (99.9%)
3,005 Federal Farm Credit Bank ....................5.64 to 6.07 08/08/95 to 01/16/96 2,981,938
5,705 Federal Home Loan Banks .....................5.63 to 5.93 08/01/95 to 12/26/95 5,668,807
550 Federal Home Loan Mortgage Corp. ............5.85 to 5.90 08/18/95 to 09/18/95 547,249
1,500 Federal National Mortgage Association ......5.68 to 6.25 09/01/95 to 11/20/95 1,482,874
------------
TOTAL U.S. GOVERNMENT AGENCIES (AMORTIZED COST $10,680,868) ......... ......... 10,680,868
------------
TOTAL INVESTMENTS (AMORTIZED COST $10,700,712) (A) .......... 100.1% 10,700,712
(0.1)
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS .............. ------ (5,898)
------------
NET ASSETS ................................................. 100.0% $10,694,814
====== ============
</TABLE>
(a) Cost is the same for federal income tax purposes.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- -----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (98.0%)
Government National Mortgage Association (45.8%)
$ 388 ............................................. 7.00% 06/15/23 $ 378,496
200 ............................................. 7.00 02/15/24 194,694
390 ............................................. 7.00 06/15/24 380,770
1,000 ............................................. 7.00 * 975,625
------------
1,929,585
------------
U.S. Treasury Interest Strips (52.2%)
100 ............................................. 0.00 08/15/96 94,679
500 ............................................. 0.00 05/15/97 450,791
800 ............................................. 0.00 08/15/98 666,968
1,300 ............................................. 0.00 02/15/00 984,315
------------
2,196,753
------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS
(IDENTIFIED COST $4,204,194) .................................... 4,126,338
------------
SHORT-TERM INVESTMENT (A) (25.1%)
U.S. GOVERNMENT OBLIGATION
1,060 U.S. Treasury Bill (Amortized Cost
$1,057,503) ................................. 5.30 08/17/95 1,057,503
------------
TOTAL INVESTMENTS (IDENTIFIED COST $5,261,697) (B) ... 123.1% 5,183,841
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS ....... (23.1) (975,016)
------ ------------
NET ASSETS ............................................ 100.0% $4,208,825
====== ============
</TABLE>
* Securities purchased on a forward commitment basis with an
approximate principal amount and no definite maturity date; the
actual principal amount and maturity date will be determined upon
settlement.
(a) Security was purchased on a discount basis. The interest rate shown
has been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $5,261,697; the
aggregate gross and net unrealized depreciation is $77,856.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- -------- ---------- ---------
<C> <S> <C> <C> <C>
CORPORATE BONDS (36.5%)
AUTOMOBILE - RENTALS (2.5%)
$25 Hertz Corp. ......................... 6.70 % 06/15/02 $ 24,759
---------
AUTOMOTIVE (2.1%)
20 Chrysler Corp. ...................... 10.40 08/01/99 21,225
---------
AUTOMOTIVE FINANCE (2.7%)
25 General Motors Acceptance Corp. .... 8.40 10/15/99 26,468
---------
BANKS (3.9%)
15 Chase Manhattan Corp. ............... 7.50 12/01/97 15,373
25 Star Bank N.A. ...................... 6.375 03/01/04 23,680
---------
39,053
---------
BANKS - INTERNATIONAL (4.1%)
15 Bank of China ....................... 6.75 03/15/99 14,805
25 Westpac Banking Corp. ............... 7.875 10/15/02 26,106
---------
40,911
---------
CABLE & TELECOMMUNICATIONS (2.5%)
25 TCI Communications, Inc. ............ 8.00 08/01/05 24,853
---------
FINANCIAL (2.5%)
25 Salomon, Inc. ....................... 7.75 05/15/00 25,194
---------
FOODS & BEVERAGES (1.0%)
10 Grand Metropolitan Investment Corp. 8.125 08/15/96 10,211
---------
HEALTHCARE (2.5%)
25 Columbia/HCA Healthcare ............. 6.91 06/15/05 24,515
---------
LEISURE (2.6%)
25 Royal Caribbean Cruises, Ltd. ...... 8.25 04/01/05 26,036
---------
RETAIL STORES (2.5%)
25 Sears, Roebuck & Co. ................ 6.50 06/15/00 24,737
---------
TOBACCO (2.5%)
25 RJR Nabisco, Inc. ................... 8.75 08/15/05 25,020
---------
TRANSPORTATION (2.6%)
25 Union Pacific Corp. ................. 7.375 05/15/01 25,704
---------
UTILITIES - ELECTRIC (2.5%)
25 Southern California Edison Co. ..... 5.60 12/15/98 24,305
---------
TOTAL CORPORATE BONDS (IDENTIFIED COST $356,607) ....... 362,991
---------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Intermediate Income Securities
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- -------- ---------- ---------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (58.8%)
$ 20 U.S. Treasury Note .................. 4.25 % 11/30/95 $ 19,906
75 U.S. Treasury Note .................. 7.50 02/29/96 75,762
75 U.S. Treasury Note .................. 7.25 11/15/96 76,324
5 U.S. Treasury Note .................. 6.375 06/30/97 5,046
35 U.S. Treasury Note .................. 6.375 01/15/99 35,252
125 U.S. Treasury Note .................. 6.75 06/30/99 127,598
115 U.S. Treasury Note .................. 6.375 07/15/99 115,952
50 U.S. Treasury Note .................. 7.875 11/15/99 53,164
75 U.S. Treasury Note .................. 6.375 01/15/00 75,574
---------
TOTAL U.S. GOVERNMENT OBLIGATIONS (IDENTIFIED COST
$593,964) .............................................. 584,578
---------
TOTAL INVESTMENTS (IDENTIFIED COST $950,571)
(A) ......................................... 95.3% 947,569
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES ................................. 4.7 46,210
------ ---------
NET ASSETS ................................... 100.0% $993,779
====== =========
</TABLE>
(a) The aggregate cost for federal income tax purposes is $950,571; the
aggregate gross unrealized appreciation is $8,341 and the aggregate gross
unrealized depreciation is $11,343, resulting in net unrealized
depreciation of $3,002.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--AMERICAN VALUE
PORTFOLIO OF INVESTMENTS July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (91.4%)
AGRICULTURE RELATED (1.5%)
4,000 AGCO Corp. .......................... $ 213,000
3,000 Pioneer Hi-Bred International, Inc. 126,750
-------------
339,750
-------------
AIRCRAFT & AEROSPACE (1.3%)
4,500 Boeing Co. .......................... 301,500
-------------
ALUMINUM (1.3%)
5,000 Aluminum Co. of America ............. 284,375
-------------
AUTOMOTIVE (1.1%)
5,000 General Motors Corp. ................ 243,750
-------------
BANKS (3.3%)
3,500 Bank of Boston Corp. ................ 151,812
4,000 Chase Manhattan Corp. ............... 214,500
6,000 Citicorp ............................ 374,250
-------------
740,562
-------------
BANKS - REGIONAL (1.2%)
1,500 Wells Fargo & Co. ................... 273,562
-------------
BASIC CYCLICALS (1.4%)
4,000 Champion International Corp. ....... 225,500
2,000 Crown Cork & Seal Co., Inc.* ....... 90,250
-------------
315,750
-------------
BIOTECHNOLOGY (1.3%)
3,000 Amgen Inc.* ......................... 254,625
617 Chiron Corp.* ....................... 48,434
-------------
303,059
-------------
BROADCAST MEDIA (1.2%)
7,000 Infinity Broadcasting Corp.* ....... 259,000
-------------
CABLE/CELLULAR (1.5%)
8,000 Ericsson (L.M.) Telephone Co. (ADR)
(Sweden) .......................... 149,000
5,000 Paging Network, Inc. ................ 197,500
-------------
346,500
-------------
CAPITAL GOODS (2.8%)
5,000 AlliedSignal, Inc. .................. 233,750
3,000 Lockheed Corp. ...................... 188,625
3,000 Sunstrand Corp. ..................... 200,625
-------------
623,000
-------------
CHEMICALS (1.0%)
2,400 Monsanto Co. ........................ 223,500
-------------
COMMUNICATIONS - SOFTWARE & SERVICES
(1.0%)
4,000 America Online, Inc.* ............... 220,500
-------------
COMPUTER EQUIPMENT (2.5%)
3,000 Adaptec, Inc. ....................... 127,875
4,000 COMPAQ Computer Corp.* .............. 203,000
5,000 Seagate Technology, Inc.* ........... 221,875
-------------
552,750
-------------
COMPUTER SOFTWARE (7.1%)
1,000 Adobe Systems, Inc. ................. 61,500
2,000 Computer Associates International,
Inc. .............................. 146,750
8,000 Informix Corp.* ..................... 236,000
2,000 Intuit, Inc.* ....................... 171,000
2,700 Microsoft Corp.* .................... $ 244,012
4,000 Oracle Systems Corp.* ............... 167,000
3,000 Parametric Technology Corp.* ....... 167,250
2,500 Peoplesoft, Inc.* ................... 177,500
</TABLE>
<PAGE>
Dean Witter Retirement Series--American Value
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
8,000 Symantec Corp.* ..................... 216,000
500 Tivoli Systems Inc.* ................ 21,750
-------------
1,608,762
-------------
CONSUMER BUSINESS SERVICES (2.4%)
3,400 Computer Sciences Corp.* ............ 200,600
3,000 First Data Corp. .................... 175,125
2,000 First Financial Management Corp. ... 175,000
-------------
550,725
-------------
DRUGS (2.4%)
2,500 American Home Products Corp. ....... 197,500
2,500 Merck & Co., Inc. ................... 129,062
5,000 SmithKline Beecham PLC (ADR) (United
Kingdom) .......................... 225,000
-------------
551,562
-------------
DRUGS & HEALTHCARE (0.5%)
1,500 Johnson & Johnson ................... 107,625
-------------
ELECTRICAL EQUIPMENT (0.6%)
2,000 Emerson Electric Co. ................ 141,500
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
(0.4%)
2,000 AMP, Inc. ........................... 86,250
-------------
ELECTRONICS - SEMICONDUCTORS (3.8%)
4,000 LSI Logic Corp.* .................... 187,000
3,500 Motorola, Inc. ...................... 268,187
6,000 National Semiconductor Corp.* ...... 162,000
1,500 Texas Instruments Inc. .............. 234,375
-------------
851,562
-------------
ELECTRONICS - SEMICONDUCTORS/
COMPONENTS (2.6%)
5,300 Intel Corp. ......................... 343,837
4,000 Micron Technology, Inc. ............. 250,000
-------------
593,837
-------------
ELECTRONICS - SPECIALTY (3.1%)
3,000 Altera Corp.* ....................... 167,625
1,000 Linear Technology Corp. ............. 77,500
4,000 Maxim Integrated Products Inc.* .... 236,000
1,800 Xilinx, Inc.* ....................... 215,100
-------------
696,225
-------------
ENTERTAINMENT (4.7%)
3,000 Broderbund Software, Inc.* .......... 215,250
7,500 C U C International, Inc.* .......... 225,938
4,000 Hollywood Entertainment Corp.* ..... 110,000
2,000 Macromedia, Inc.* ................... 95,000
3,000 Sierra On-Line, Inc.* ............... 108,000
3,000 Viacom, Inc. (Class B)* ............. 152,250
2,500 Walt Disney Co. ..................... 146,563
-------------
1,053,001
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--American Value
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
FINANCIAL - MISCELLANEOUS (7.8%)
4,000 Ahmanson (H.F.) & Co. ............... $ 89,500
10,000 Bear Stearns Companies, Inc. ....... 221,250
6,000 Countrywide Credit Industries, Inc. 133,500
100 Edwards (A.G.), Inc. ................ 2,450
800 Federal Home Loan Mortgage Corp. ... 52,400
1,400 Federal National Mortgage
Association ....................... 131,075
6,000 Golden West Financial Corp. ......... 280,500
5,000 Great Western Financial Corp. ...... 106,875
2,000 Green Tree Financial Corp. .......... 108,250
5,000 Merrill Lynch & Co., Inc. ........... 277,500
2,500 Morgan Stanley Group, Inc. .......... 209,063
3,000 Schwab (Charles) Corp. .............. 138,375
-------------
1,750,738
-------------
HEALTHCARE PRODUCTS & SERVICES
(1.2%)
3,000 HBO & Co. ........................... 165,000
3,000 Healthsouth Corp.* .................. 57,750
2,000 Medaphis Corp.* ..................... 50,500
-------------
273,250
-------------
HOTELS / MOTELS (2.5%)
1,000 Hilton Hotels Corp. ................. 73,250
600 ITT Corp. ........................... 72,000
4,500 La Quinta Inns, Inc. ................ 126,563
5,000 Marriot International Inc. .......... 181,250
5,000 Prime Hospitality Corp.* ............ 48,750
2,500 Promus Hotel Corporation* ........... 61,563
-------------
563,376
-------------
HOUSEHOLD PRODUCTS (0.8%)
4,000 Scott Paper Co. ..................... 183,500
-------------
INSURANCE (3.9%)
6,000 American General Corp. .............. 218,250
2,550 American International Group, Inc. . 191,250
1,000 Reliastar Financial Corp. ........... 38,125
2,500 SunAmerica Inc. ..................... 143,125
6,000 Travelers Group, Inc. ............... 284,250
-------------
875,000
-------------
MACHINERY - DIVERSIFIED (0.9%)
5,000 Thermo Electron Corp.* .............. 213,750
-------------
MANUFACTURING (2.2%)
9,000 Loral Corp. ......................... 504,000
-------------
MEDIA GROUP (2.4%)
1,300 Capital Cities/ABC, Inc. ............ 151,775
1,500 CBS Inc. ............................ 116,438
8,000 News Corp. Ltd. (ADR) (Australia) .. 189,000
6,000 Westwood One, Inc.* ................. 93,750
-------------
550,963
-------------
MEDICAL PRODUCTS & SUPPLIES (1.2%)
2,500 Medtronic Inc. ...................... 205,000
2,000 Omnicare, Inc. ...................... 62,000
-------------
267,000
-------------
POLLUTION CONTROL (0.9%)
5,000 Browning-Ferris Industries, Inc. ... $ 193,125
-------------
RESTAURANTS (0.3%)
2,000 Starbucks Corp.* .................... 74,250
-------------
RETAIL (1.4%)
1,500 Dayton Hudson Corp. ................. 113,438
7,000 Federated Department Stores, Inc. .. 198,625
-------------
312,063
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--American Value
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -------------
<C> <S> <C>
SEMICONDUCTOR - CAPITAL EQUIPMENT
(2.3%)
4,000 Applied Materials, Inc.* ............ 414,000
1,000 Opal Inc.* .......................... 24,250
2,000 Tencor Instruments .................. 87,000
-------------
525,250
-------------
SEMICONDUCTORS (2.3%)
3,500 KLA Instruments Corp.* .............. 303,625
6,000 Ultratech Stepper, Inc.* ............ 223,500
-------------
527,125
-------------
TELECOMMUNICATIONS (10.4%)
4,000 3Com Corp.* ......................... 295,500
3,000 Ascend Communications, Inc.* ....... 216,750
4,000 Cascade Communications Corp. ....... 201,000
5,000 Cisco Systems, Inc.* ................ 278,125
6,000 DSC Communications Corp.* ........... 321,000
3,000 Fore Systems, Inc.* ................. 103,500
3,000 Glenayre Technologies, Inc.* ....... 186,000
4,000 Stratacom, Inc. ..................... 215,000
5,500 Tellabs, Inc.* ...................... 244,750
2,000 U.S. Robotics Corp.* ................ 288,000
-------------
2,349,625
-------------
TRANSPORTATION (0.9%)
3,000 Burlington Northern, Inc. ........... 207,750
-------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $17,327,540) ..... 20,639,372
-------------
CONVERTIBLE PREFERRED STOCK (1.1%)
TELECOMMUNICATIONS
3,700 Nokia Corp. (ADR) (Finland)
(Identified Cost $122,489) ........ 243,275
-------------
PREFERRED STOCK (1.1%)
COMPUTER SOFTWARE
160 Sap AG (Germany) (Identified Cost
$129,818) ......................... 259,201
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION (3.3%)
$4,000 U.S. Treasury Note (Principal Strip)
0.00% due 02/15/19 (Identified Cost
$745,566) ............................. 748,075
--------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--American Value
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENT (2.1%)
REPURCHASE AGREEMENT
$470 The Bank of New York 5.8125% due
08/01/95 (dated 07/31/95;
proceeds $470,044;
collateralized by $473,058
Federal Mortgage Acceptance
Corp. valued at $488,532)
(Identified Cost $469,968) ..... $ 469,968
---------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $18,795,381) (a) 99.0% 22,359,891
OTHER ASSETS IN EXCESS OF
LIABILITIES ...................... 1.0 221,596
-------- ------------
NET ASSETS ........................ 100.0% $22,581,487
======== ============
</TABLE>
ADR American Depository Receipt.
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is $18,807,474;
the aggregate gross unrealized appreciation is $3,640,590 and the
aggregate gross unrealized depreciation is $88,173 resulting in net
unrealized appreciation of $3,552,417.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JULY 31, 1995:
<TABLE>
<CAPTION>
IN
CONTRACTS EXCHANGE DELIVERY UNREALIZED
TO DELIVERY FOR DATE APPRECIATION
- --------------- ---------- ---------- --------------
<S> <C> <C> <C>
DEM 40,446 $29,287 08/02/95 $101
==============
</TABLE>
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ----------
<C> <S> <C>
COMMON STOCKS (97.7%)
ADVERTISING (2.2%)
400 Interpublic Group of Companies, Inc. ..... $14,950
----------
APPAREL (2.2%)
400 Cintas Corp. .............................. 14,800
----------
AUTOMOTIVE (2.2%)
400 Genuine Parts Co. ......................... 15,100
----------
BANKING (2.5%)
300 Fifth Third Bancorp. ...................... 16,950
----------
BEVERAGES (4.4%)
300 Anheuser-Busch Companies, Inc. ............ 16,687
200 Coca Cola Co. ............................. 13,175
----------
29,862
----------
BUSINESS SYSTEMS (1.9%)
300 General Motors Corp. (Class E) ............ 13,200
----------
CHEMICALS - SPECIALTY (2.2%)
300 Sigma-Aldrich Corp. ....................... 14,925
----------
COMPUTER SERVICES (1.9%)
200 Automatic Data Processing, Inc. ........... 12,800
----------
COMPUTER SOFTWARE (4.8%)
200 Computer Associates International, Inc. .. 14,675
200 Microsoft Corp.* .......................... 18,075
----------
32,750
----------
CONSUMER SERVICES (2.2%)
400 Block (H.& R.), Inc. ...................... 15,000
----------
COSMETICS (2.3%)
300 International Flavors & Fragrances Inc. .. 15,675
----------
DISTRIBUTION (2.3%)
500 Sysco Corp. ............................... 15,562
----------
DRUGS & HEALTHCARE (6.4%)
400 Abbott Laboratories ....................... 16,000
300 Forest Laboratories, Inc. (Class A)* ..... 13,312
300 Schering-Plough Corp. ..................... 13,950
----------
43,262
----------
ELECTRONICS - SPECIALTY (3.8%)
300 Dionex Corp.* ............................. 14,400
200 Grainger (W.W.), Inc. ..................... 11,725
----------
26,125
----------
ENTERTAINMENT/GAMING (2.2%)
500 Circus Circus Enterprises, Inc.* .......... 14,875
----------
FOODS (6.3%)
400 ConAgra, Inc. ............................. 15,100
400 Tootsie Roll Industries, Inc. ............. 14,400
300 Wrigley, (Wm), Jr. (Class A) .............. 13,350
----------
42,850
----------
GOLD (2.2%)
600 Barrick Gold Corp. (Canada) ............... 14,925
----------
HEALTH CARE - MISCELLANEOUS (2.3%)
500 U.S. Healthcare, Inc. ..................... $15,813
----------
HOUSEHOLD PRODUCTS (2.2%)
500 Rubbermaid, Inc. .......................... 14,875
----------
INSURANCE (1.6%)
150 American International Group, Inc. ....... 11,250
----------
MACHINERY - DIVERSIFIED (2.5%)
</TABLE>
<PAGE>
Dean Witter Retirement Series--Capital Growth
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ----------
<C> <S> <C>
400 Thermo Electron Corp.* .................... 17,100
----------
MANUFACTURED HOUSING (2.4%)
800 Clayton Homes, Inc. ....................... 16,000
----------
MANUFACTURING (4.9%)
700 Federal Signal Corp. ...................... 16,100
300 Loral Corp. ............................... 16,800
----------
32,900
----------
MANUFACTURING - DIVERSIFIED INDUSTRIES
(2.2%)
400 Sherwin-Williams Co. ...................... 14,600
----------
MEDICAL EQUIPMENT (1.9%)
300 Stryker Corp. ............................. 13,088
----------
MEDICAL PRODUCTS & SUPPLIES (2.3%)
1,000 Biomet, Inc.* ............................. 15,250
----------
RESTAURANTS (6.9%)
800 Brinker International, Inc.* .............. 14,200
800 International Dairy Queen, Inc. (Class A)* 16,800
400 McDonald's Corp. .......................... 15,450
----------
46,450
----------
RETAIL (2.4%)
600 Wal-Mart Stores, Inc. (Class A) ........... 15,975
----------
RETAIL - DRUG STORES (2.3%)
300 Walgreen Co. .............................. 15,525
----------
RETAIL - SPECIALTY (2.6%)
400 Home Depot, Inc. .......................... 17,550
----------
SUPERMARKETS (2.2%)
500 Albertson's Inc. .......................... 14,875
----------
TOBACCO (2.0%)
500 UST, Inc. ................................. 13,625
----------
U.S. GOVERNMENT AGENCY (2.8%)
200 Federal National Mortgage Association .... 18,725
----------
UTILITIES (2.2%)
1,315 Citizens Utilities Co. (Series A)* ....... 14,794
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $599,659) (a)
97.7% 662,006
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES ................ 2.3 15,500
-------- ---------
NET ASSETS ..................... 100.0% $677,506
======== =========
</TABLE>
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is $600,621; the
aggregate gross unrealized appreciation is $65,861 and the aggregate
gross unrealized depreciation is $4,476, resulting in net unrealized
appreciation of $61,385.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- ------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS (99.3%)
AEROSPACE (6.0%)
24,500 Honeywell, Inc. ...................... $ 1,050,437
13,100 Raytheon Co. ......................... 1,082,387
------------
2,132,824
------------
ALUMINUM (3.1%)
19,500 Aluminum Co. of America .............. 1,109,062
------------
AUTOMOTIVE (6.0%)
21,900 Chrysler Corp. ....................... 1,067,625
35,900 Ford Motor Co. ....................... 1,036,612
------------
2,104,237
------------
BANK HOLDING COMPANIES (2.9%)
18,400 NationsBank Corp. .................... 1,032,700
------------
BANKS (3.1%)
20,000 BankAmerica Corp. .................... 1,080,000
------------
BEVERAGES - SOFT DRINKS (3.0%)
22,900 PepsiCo Inc. ......................... 1,073,437
------------
CHEMICALS (5.9%)
15,400 Du Pont (E.I.) de Nemours & Co. ..... 1,031,800
16,600 Eastman Chemical Company ............. 1,062,400
------------
2,094,200
------------
COMPUTERS (3.1%)
10,100 International Business Machines Corp. . 1,099,638
------------
CONGLOMERATES (3.1%)
19,500 Minnesota Mining & Manufacturing Co. . 1,104,188
------------
DRUGS (3.0%)
15,200 Bristol-Myers Squibb Co. ............. 1,052,600
------------
DRUGS & HEALTHCARE (3.0%)
26,600 Abbott Laboratories .................. 1,064,000
------------
ELECTRICAL EQUIPMENT (2.9%)
17,600 General Electric Co. ................. 1,038,400
------------
FOODS (6.1%)
32,200 Quaker Oats Company (The) ............ 1,118,950
8,000 Unilever N.V. (ADR) (Netherlands) ... 1,054,000
------------
2,172,950
------------
MACHINERY - AGRICULTURAL (3.1%)
12,100 Deere & Co. .......................... 1,087,488
------------
METALS & MINING (3.0%)
16,300 Phelps Dodge Corp. ................... 1,047,275
------------
NATURAL GAS (5.9%)
29,700 Enron Corp. .......................... 1,032,075
21,200 Tenneco Inc. ......................... 1,049,400
------------
2,081,475
------------
OFFICE EQUIPMENT (2.9%)
25,900 Pitney Bowes, Inc. ................... $ 1,039,238
------------
OIL (3.0%)
16,000 Amoco Corp. .......................... 1,076,000
------------
OIL INTEGRATED -
INTERNATIONAL (3.0%)
14,400 Exxon Corp. .......................... 1,044,000
------------
PAPER & FOREST PRODUCTS (3.0%)
22,700 Weyerhaeuser Co. ..................... 1,061,225
------------
PHOTOGRAPHY (3.0%)
18,100 Eastman Kodak Co. .................... 1,043,013
------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Dividend Growth
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------- ------------------------------------- ------------
<C> <S> <C>
RAILROADS (3.0%)
12,450 CSX Corp. ............................ 1,044,244
------------
RETAIL (0.4%)
10,000 KMart Corp. .......................... 157,500
------------
RETAIL - DEPARTMENT STORES
(3.0%)
24,400 May Department Stores Co. ............ 1,058,350
------------
TELEPHONES (3.0%)
18,700 Bell Atlantic Corp. .................. 1,070,575
------------
TELECOMMUNICATIONS (3.0%)
31,200 Sprint Corporation ................... 1,068,600
------------
TOBACCO (2.9%)
14,400 Philip Morris Companies, Inc. ....... 1,031,400
------------
UTILITIES - ELECTRIC (5.9%)
24,000 Houston Industries, Inc. ............. 1,050,000
35,300 Pacific Gas & Electric Co. ........... 1,041,350
------------
2,091,350
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $30,560,871) ...... 35,159,969
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (A) (0.9%)
U.S. GOVERNMENT AGENCY
$330 Federal Home Loan Mortgage
Corp. 5.75% due 08/01/95
(Amortized Cost $330,000) ... 330,000
--------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $30,890,871)
(b) ............................. 100.2% 35,489,969
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS .................... (0.2) (85,948)
-------- ------------
NET ASSETS ....................... 100.0% $35,404,021
======== ============
</TABLE>
ADR American Depository Receipt.
(a) Security was purchased on a discount basis. The interest rate shown
has been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $30,962,706;
the aggregate gross unrealized appreciation is $4,535,428 and the
aggregate gross unrealized depreciation is $8,165, resulting in net
unrealized appreciation of $4,527,263.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--UTILITIES
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS (84.4%)
ELECTRIC UTILITIES - EQUIPMENT (2.3%)
2,500 Kenetech Corp. ...................... $ 28,750
3,000 Public Service Co. of Colorado ..... 94,875
-----------
123,625
-----------
ELECTRONICS - SEMICONDUCTORS (2.9%)
2,000 Motorola, Inc. ...................... 153,250
-----------
NATURAL GAS (13.1%)
2,500 Enron Corp. ......................... 86,875
5,000 MCN Corp. ........................... 95,000
5,000 NorAm Energy Corp. .................. 34,375
3,000 Pacific Enterprises ................. 72,375
3,500 Panhandle Eastern Corp. ............. 85,312
3,000 Questar Corp. ....................... 86,250
2,500 Sonat, Inc. ......................... 75,000
2,000 Tenneco Inc. ........................ 99,000
2,000 Williams Companies, Inc. ............ 74,000
-----------
708,187
-----------
TELECOMMUNICATION EQUIPMENT (1.3%)
3,300 Alcatel Alsthom (ADR) (France) ..... 70,125
-----------
TELECOMMUNICATIONS (32.1%)
3,000 Airtouch Communications, Inc.* ..... 94,500
3,200 Alltel Corp. ........................ 84,400
2,000 AT&T Corp. .......................... 105,500
1,500 BellSouth Corp. ..................... 101,625
3,000 Cable & Wireless PLC (ADR) (United
Kingdom) .......................... 60,750
2,000 Century Telephone Enterprises, Inc. 57,000
2,000 Comsat Corp. ........................ 46,250
3,300 Frontier Corp. ...................... 88,687
3,000 GTE Corp. ........................... 106,500
4,000 MCI Communications Corp. ............ 95,500
6,000 Micom Communications Corp. .......... 94,500
2,000 SBC Communications, Inc. ............ 96,250
2,500 Southern New England
Telecommunications Corp. .......... 85,625
3,000 Sprint Corporation .................. 102,750
2,000 Tele Danmark AS (ADR) (Denmark) .... 57,000
1,000 Telecommunications Corp. New
Zealand, Ltd. (ADR) (New Zealand) . 64,125
2,000 Telefonica Espana S.A. (ADR) (Spain) 81,750
2,000 Telefonos de Mexico S.A. (Series L)
(ADR) (Mexico) .................... 66,000
3,000 Telephone & Data Systems, Inc. ..... 116,250
3,000 Vodafone Group PLC (ADR) (United
Kingdom) .......................... 118,125
-----------
1,723,087
-----------
UTILITIES - ELECTRIC (31.3%)
3,000 Central & South West Corp. .......... $ 76,500
3,000 CINergy Corp. ....................... 78,000
3,800 CMS Energy Corp. .................... 95,000
2,500 Detroit Edison Co. .................. 73,750
3,500 DPL, Inc. ........................... 77,875
4,050 DQE, Inc. ........................... 97,200
2,500 Duke Power Co. ...................... 103,750
3,500 Eastern Utilities Associates ....... 76,125
2,000 Florida Progress Corp. .............. 61,500
2,000 General Public Utilities Corp. ..... 57,750
4,000 Illinova Corp. ...................... 100,000
2,500 NIPSCO Industries, Inc. ............. 81,563
3,600 Northeast Utilities ................. 81,000
3,000 PacifiCorp .......................... 55,125
2,500 PECO Energy Co. ..................... 71,563
3,000 Pinnacle West Capital Corp. ......... 73,125
5,000 Public Service Company of New
Mexico* ........................... 71,875
3,000 SCE Corp. ........................... 51,375
4,000 TECO Energy, Inc. ................... 86,000
2,500 Unicom Corp. ........................ 69,375
2,500 Utilicorp United, Inc. .............. 68,750
2,500 Western Resources Corp. ............. 76,250
-----------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Utilities
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
1,683,451
-----------
UTILITIES - GAS (0.7%)
2,500 Southwest Gas Corp. ................. 36,875
-----------
UTILITIES - WATER (0.7%)
3,000 United Water Resources, Inc. ....... 40,125
-----------
TOTAL COMMON STOCKS (IDENTIFIED COST
$4,191,361) ....................... 4,538,725
-----------
PREFERRED STOCKS (1.0%)
U.S. GOVERNMENT AGENCY (0.5%)
1,000 Tennessee Valley Authority 8.00%
(Series 95-A) ..................... 25,375
-----------
UTILITIES - ELECTRIC (0.5%)
1,000 Connecticut Light & Power Capital
9.30% (Series A) .................. 26,875
-----------
TOTAL PREFERRED STOCKS (IDENTIFIED
COST $50,000) ..................... 52,250
-----------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Utilities
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ----------- -----------
<C> <S> <C>
CORPORATE BOND (1.8%)
UTILITIES - ELECTRIC
Kentucky Utilities Co. 7.55% due
06/01/25 (Identified Cost
$100 $100,000) ........................ $ 97,342
-----------
SHORT-TERM INVESTMENTS (A) (11.6%)
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage Corp.
150 5.64% due 08/02/95 ............... 149,977
Federal National Mortgage
475 Association 5.69% due 08/09/95 ... 474,400
-----------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $624,377) ....... 624,377
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $4,965,738) (b) 98.8% 5,312,694
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES .................. 1.2 67,126
-------- -----------
NET ASSETS ....................... 100.0% $5,379,820
======== ===========
</TABLE>
ADR American Depository Receipt.
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates
shown have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $4,969,226; the
aggregate gross unrealized appreciation is $412,166 and the aggregate
gross unrealized depreciation is $68,698, resulting in net unrealized
appreciation of $343,468.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C> <C>
COMMON STOCKS (95.6%)
AEROSPACE & DEFENSE (1.5%)
380 Boeing Co. ............................. $ 25,460
550 General Dynamics Corp. ................. 26,812
420 Lockheed Corp. ......................... 26,407
330 McDonnell Douglas Corp. ................ 27,266
500 Northrop Grumman Corp. ................. 28,500
340 Raytheon Co. ........................... 28,092
560 Rockwell International Corp. ........... 25,550
325 United Technologies Corp. .............. 27,300
-------------
215,387
-------------
AIRLINES (0.8%)
350 AMR Corp.* ............................. 26,250
330 Delta Air Lines, Inc. .................. 26,152
945 Southwest Airlines Co. ................. 27,169
2,900 USAir Group, Inc.* ..................... 27,550
-------------
107,121
-------------
ALUMINUM (0.6%)
760 Alcan Aluminum Ltd. (Canada) ........... 25,745
480 Aluminum Co. of America ................ 27,300
450 Reynolds Metals Co. .................... 28,125
-------------
81,170
-------------
AUTO PARTS - AFTER MARKET (0.8%)
1,030 Cooper Tire & Rubber Co. ............... 26,522
730 Echlin, Inc. ........................... 28,470
710 Genuine Parts Co. ...................... 26,802
610 Goodyear Tire & Rubber Co. ............. 26,459
-------------
108,253
-------------
AUTOMOBILES (0.6%)
545 Chrysler Corp. ......................... 26,569
955 Ford Motor Co. ......................... 27,576
535 General Motors Corp. ................... 26,081
-------------
80,226
-------------
BANKS - MONEY CENTER (1.5%)
495 BankAmerica Corp. ...................... 26,730
435 Bankers Trust New York Corp. ........... 28,057
500 Chase Manhattan Corp. .................. 26,812
530 Chemical Banking Corp. ................. 27,361
405 Citicorp ............................... 25,262
415 First Chicago Corp. .................... 25,211
360 Morgan (J.P.) & Co., Inc. .............. 26,325
460 Republic New York Corp. ................ 25,760
-------------
211,518
-------------
BANKS - REGIONAL (4.1%)
810 Banc One Corp. ......................... 25,717
630 Bank of Boston Corp. ................... 27,326
650 Bank of New York Co., Inc. ............. 26,081
470 Barnett Banks, Inc. .................... 26,085
700 Boatmen's Bancshares, Inc. ............. 25,462
750 Corestates Financial Corp. ............. 27,375
405 First Fidelity Bancorp, Inc. ........... 25,515
320 First Interstate Bancorp ............... 27,560
570 First Union Corp. ...................... 27,859
710 Fleet Financial Group, Inc. ............ 25,294
865 Keycorp ................................ 27,680
710 Mellon Bank Corp. ...................... $ 28,489
850 National City Corp. .................... 26,031
490 NationsBank Corp. ...................... 27,501
750 NBD Bancorp, Inc. ...................... 25,500
910 Norwest Corp. .......................... 25,707
1,045 PNC Bank Corp. ......................... 25,733
930 Shawmut National Corp. ................. 28,714
440 SunTrust Banks, Inc. ................... 26,565
1,075 U.S. Bancorp ........................... 27,950
710 Wachovia Corp. ......................... 27,069
145 Wells Fargo & Co. ...................... 26,444
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
587,657
-------------
BEVERAGES - ALCOHOLIC (0.8%)
490 Anheuser-Busch Companies, Inc. ......... 27,256
815 Brown-Forman Corp (Class B) ............ 27,506
1,600 Coors (Adolph) Co. ..................... 27,200
725 Seagram Co. Ltd. (Canada) .............. 26,009
-------------
107,971
-------------
BEVERAGES - SOFT DRINKS (0.4%)
390 Coca Cola Co. .......................... 25,691
580 PepsiCo Inc. ........................... 27,187
-------------
52,878
-------------
BROADCAST MEDIA (0.8%)
290 Capital Cities/ABC, Inc. ............... 33,857
385 CBS Inc. ............................... 29,886
1,220 Comcast Corp. (Class A Special) ....... 24,552
1,060 Tele-Communications, Inc. .............. 26,500
-------------
114,795
-------------
BUILDING MATERIALS (0.6%)
1,055 Masco Corp. ............................ 27,430
675 Owens-Corning Fiberglas Corp.* ......... 26,494
700 Sherwin-Williams Co. ................... 25,550
-------------
79,474
-------------
CHEMICALS (1.8%)
450 Air Products & Chemicals, Inc. ......... 25,200
355 Dow Chemical Co. ....................... 26,314
385 Du Pont (E.I.) de Nemours & Co. ....... 25,795
430 Eastman Chemical Company ............... 27,520
470 Goodrich (B.F.) Co. .................... 25,497
500 Hercules, Inc. ......................... 26,812
280 Monsanto Co. ........................... 26,075
950 Praxair, Inc. .......................... 26,600
445 Rohm & Haas Co. ........................ 25,921
760 Union Carbide Corp. .................... 26,410
-------------
262,144
-------------
CHEMICALS - DIVERSIFIED (1.0%)
655 Avery Dennison Corp. ................... 26,282
910 Engelhard Corp. ........................ 27,641
765 First Mississippi Corp. ................ 26,106
405 FMC Corp.* ............................. 29,160
600 PPG Industries, Inc. ................... 27,450
-------------
136,639
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
CHEMICALS - SPECIALTY (1.0%)
450 Grace (W.R.) & Co. ..................... $ 27,844
435 Great Lakes Chemical Corp. ............. 28,547
900 Morton International, Inc. ............. 27,000
750 Nalco Chemical Co. ..................... 26,719
505 Sigma-Aldrich Corp. .................... 25,124
-------------
135,234
-------------
COMMUNICATIONS-
EQUIPMENT/MANUFACTURERS (1.3%)
420 Andrew Corp.* .......................... 24,937
450 Cabletron Systems, Inc. ................ 23,400
465 Cisco Systems, Inc.* ................... 25,866
510 DSC Communications Corp.* .............. 27,285
700 Northern Telecom Ltd. (Canada) ......... 26,337
1,160 Scientific-Atlanta, Inc. ............... 24,940
625 Tellabs, Inc.* ......................... 27,812
-------------
180,577
-------------
COMPUTER SOFTWARE & SERVICES (1.8%)
560 Autodesk, Inc. ......................... 25,340
390 Automatic Data Processing, Inc. ....... 24,960
685 Ceridian Corp.* ........................ 28,342
365 Computer Associates International, Inc. 26,782
460 Computer Sciences Corp.* ............... 27,140
445 First Data Corp. ....................... 25,977
300 Microsoft Corp.* ....................... 27,112
1,545 Novell, Inc.* .......................... 27,810
615 Oracle Systems Corp.* .................. 25,676
600 Shared Medical Systems Corp. ........... 24,825
-------------
263,964
-------------
COMPUTERS - SYSTEMS (2.4%)
2,800 Amdahl Corp.* .......................... 27,825
570 Apple Computer, Inc. ................... 25,507
565 COMPAQ Computer Corp.* ................. 28,674
1,065 Cray Research, Inc.* ................... 27,557
3,190 Data General Corp.* .................... 27,514
630 Digital Equipment Corp.* ............... 24,176
330 Hewlett-Packard Co. .................... 25,699
2,210 Intergraph Corp.* ...................... 25,139
270 International Business Machines Corp. . 29,396
590 Silicon Graphics, Inc.* ................ 24,780
555 Sun Microsystems, Inc.* ................ 26,640
2,100 Tandem Computers Inc.* ................. 27,562
3,140 Unisys Corp.* .......................... 27,867
-------------
348,336
-------------
CONGLOMERATES (0.8%)
225 ITT Corp. .............................. 27,000
1,190 Teledyne, Inc.* ........................ 28,411
565 Tenneco Inc. ........................... 27,967
440 Textron Inc. ........................... 29,260
-------------
112,638
-------------
CONTAINERS - METAL & GLASS (0.4%)
735 Ball Corp. ............................. 27,195
620 Crown Cork & Seal Co., Inc.* ........... 27,977
-------------
55,172
-------------
CONTAINERS - PAPER (0.6%)
950 Bemis Company, Inc. .................... $ 26,956
1,170 Stone Container Corp.* ................. 25,301
535 Temple-Inland Inc. ..................... 27,686
-------------
79,943
-------------
COSMETICS (0.7%)
865 Alberto-Culver Co. ..................... 26,166
385 Avon Products, Inc. .................... 26,180
580 Gillette Co. ........................... 25,375
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
495 International Flavors & Fragrances Inc. 25,864
-------------
103,585
-------------
DISTRIBUTORS - CONSUMER PRODUCTS (0.6%)
1,035 Fleming Cos., Inc. ..................... 27,298
935 Super Valu Stores, Inc. ................ 28,751
885 Sysco Corp. ............................ 27,546
-------------
83,595
-------------
ELECTRICAL EQUIPMENT (1.7%)
608 AMP, Inc. .............................. 26,220
350 Emerson Electric Co. ................... 24,762
450 General Electric Co. ................... 26,550
775 General Signal Corp. ................... 28,578
475 Grainger (W.W.), Inc. .................. 27,847
615 Honeywell, Inc. ........................ 26,368
665 Raychem Corp. .......................... 25,270
375 Thomas & Betts Corp. ................... 25,359
1,880 Westinghouse Electric Corp. ............ 25,615
-------------
236,569
-------------
ELECTRONICS - DEFENSE (0.4%)
1,480 EG & G, Inc. ........................... 27,565
530 Loral Corp. ............................ 29,680
-------------
57,245
-------------
ELECTRONICS - INSTRUMENTATION (0.4%)
760 Perkin-Elmer Corp. ..................... 25,745
575 Tektronix, Inc. ........................ 27,672
-------------
53,417
-------------
ELECTRONICS - SEMICONDUCTORS (1.3%)
790 Advanced Micro Devices, Inc. ........... 25,774
265 Applied Materials, Inc.* ............... 27,427
425 Intel Corp. ............................ 27,572
440 Micron Technology, Inc. ................ 27,500
360 Motorola, Inc. ......................... 27,585
900 National Semiconductor Corp.* .......... 24,300
175 Texas Instruments Inc. ................. 27,344
-------------
187,502
-------------
ENGINEERING & CONSTRUCTION (0.8%)
460 Fluor Corp. ............................ 25,990
740 Foster Wheeler Corp. ................... 25,807
3,670 Morrison Knudsen Co., Inc. ............. 28,442
1,275 Zurn Industries, Inc. .................. 27,891
-------------
108,130
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
ENTERTAINMENT (0.7%)
635 King World Productions Inc.* ........... $ 26,591
595 Time Warner, Inc. ...................... 25,511
525 Viacom, Inc.* .......................... 26,644
455 Walt Disney Co. ........................ 26,674
-------------
105,420
-------------
FINANCIAL - MISCELLANEOUS (1.2%)
720 American Express Co. ................... 27,720
745 American General Corp. ................. 27,099
430 Federal Home Loan Mortgage Corp. ...... 28,165
280 Federal National Mortgage Association . 26,215
755 MBNA Corp. ............................. 27,086
450 Transamerica Corp. ..................... 27,844
-------------
164,129
-------------
FOODS (2.4%)
1,590 Archer-Daniels-Midland Co. ............. 26,235
440 C P C International Inc. ............... 27,170
585 Campbell Soup Co. ...................... 27,349
760 ConAgra, Inc. .......................... 28,690
495 General Mills, Inc. .................... 25,864
595 Heinz (H.J.) Co. ....................... 25,808
475 Hershey Foods Corp. .................... 27,372
350 Kellogg Co. ............................ 25,156
765 Quaker Oats Co. ........................ 26,584
530 Ralston-Ralston Purina Group ........... 28,355
950 Sara Lee Corp. ......................... 27,194
210 Unilever NV (ADR) (Netherlands) ....... 27,667
630 Wrigley (Wm.) Jr. Co. (Class A) ....... 28,035
-------------
351,479
-------------
GOLD MINING (1.2%)
1,115 Barrick Gold Corp. ..................... 27,736
3,005 Echo Bay Mines Ltd. (Canada) ........... 27,608
1,725 Homestake Mining Co. ................... 28,247
650 Newmont Mining Corp. ................... 27,787
1,070 Placer Dome Inc. ....................... 26,884
2,290 Santa Fe Pacific Gold Corp. ............ 28,625
-------------
166,887
-------------
HARDWARE & TOOLS (0.5%)
840 Black & Decker Corp. ................... 26,565
645 Snap-On, Inc. .......................... 26,929
670 Stanley Works .......................... 26,549
-------------
80,043
-------------
HEALTH CARE - MISCELLANEOUS (0.8%)
1,060 Alza Corp.* ............................ 27,295
340 Amgen Inc.* ............................ 28,857
2,100 Beverly Enterprises, Inc.* ............. 29,662
885 Manor Care, Inc. ....................... 28,652
-------------
114,466
-------------
HEALTH CARE - DIVERSIFIED (1.4%)
680 Abbott Laboratories .................... 27,200
980 Allergan, Inc. ......................... 29,645
340 American Home Products Corp. ........... 26,860
400 Bristol-Myers Squibb Co. ............... 27,700
380 Johnson & Johnson ...................... 27,265
720 Mallinckrodt Group, Inc. ............... 27,900
305 Warner-Lambert Co. ..................... 25,620
-------------
192,190
-------------
HEALTH CARE - DRUGS (1.0%)
325 Lilly (Eli) & Co. ...................... $ 25,431
520 Merck & Co., Inc. ...................... 26,845
550 Pfizer, Inc. ........................... 27,775
620 Schering-Plough Corp. .................. 28,830
700 Upjohn & Co. ........................... 26,950
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
135,831
-------------
HEALTHCARE - HMOs (0.4%)
800 U.S. HealthCare, Inc. .................. 25,300
610 United Healthcare Corp. ................ 27,602
-------------
52,902
-------------
HEAVY DUTY TRUCKS & PARTS (0.9%)
600 Cummins Engine Co., Inc. ............... 25,200
865 Dana Corp. ............................. 25,517
510 Eaton Corp. ............................ 28,496
1,665 Navistar International Corp.* .......... 25,599
520 PACCAR, Inc. ........................... 27,560
-------------
132,372
-------------
HOME BUILDING (0.6%)
990 Centex Corp. ........................... 27,720
1,915 Kaufman & Broad Home Corp. ............. 27,528
1,060 Pulte Corp. ............................ 28,487
-------------
83,735
-------------
HOSPITAL MANAGEMENT (0.6%)
580 Columbia/HCA Healthcare Corp. .......... 28,420
2,180 Community Psychiatric Centers* ......... 27,795
1,815 Tenet Healthcare Corp. ................. 27,679
-------------
83,894
-------------
HOTELS/MOTELS (0.6%)
970 Harrah's Entertainment, Inc. ........... 26,069
345 Hilton Hotels Corp. .................... 25,271
770 Marriot International Inc. ............. 27,912
-------------
79,252
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES
(1.0%)
490 Armstrong World Industries Inc. ....... 27,072
1,170 Bassett Furniture Industries, Inc. .... 28,519
1,635 Maytag Corp. ........................... 26,773
460 Whirlpool Corp. ........................ 26,565
3,190 Zenith Electronics Corp.* .............. 27,912
-------------
136,841
-------------
HOUSEHOLD PRODUCTS (0.9%)
400 Clorox Co. ............................. 26,250
385 Colgate-Palmolive Co. .................. 26,950
440 Kimberly-Clark Corp. ................... 27,885
380 Procter & Gamble Co. ................... 26,172
620 Scott Paper Co. ........................ 28,442
-------------
135,699
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
HOUSEWARES (0.6%)
1,090 Newell Co. ............................. $ 27,659
510 Premark International, Inc. ............ 26,966
870 Rubbermaid, Inc. ....................... 25,882
-------------
80,507
-------------
INSURANCE BROKERS (0.4%)
1,190 Alexander & Alexander Services, Inc. .. 27,370
325 Marsh & McLennan Cos., Inc. ............ 25,675
-------------
53,045
-------------
INVESTMENT BANKING/ BROKERAGE (0.8%)
525 Dean Witter, Discover & Co. (Note 3) .. 26,512
495 Merrill Lynch & Co., Inc. .............. 27,472
730 Salomon, Inc. .......................... 26,919
600 Travelers, Inc. ........................ 28,425
-------------
109,328
-------------
LEISURE TIME (0.8%)
2,090 Bally Entertainment Corp.* ............. 26,909
1,505 Brunswick Corp. ........................ 30,288
2,715 Handleman Co. .......................... 28,168
1,390 Outboard Marine Corp. .................. 27,800
-------------
113,165
-------------
LIFE INSURANCE (1.1%)
489 Jefferson-Pilot Corp. .................. 27,323
640 Lincoln National Corp. ................. 26,320
725 Providian Corp. ........................ 26,009
705 Torchmark Corp. ........................ 27,142
555 UNUM Corp. ............................. 26,848
670 USLIFE Corp. ........................... 27,972
-------------
161,614
-------------
MACHINE TOOLS (0.4%)
830 Cincinnati Milacron, Inc. .............. 25,937
1,655 Giddings & Lewis, Inc. ................. 27,514
-------------
53,451
-------------
MACHINERY - DIVERSIFIED (1.7%)
770 Briggs & Stratton Corp. ................ 25,699
370 Caterpillar, Inc. ...................... 26,039
740 Cooper Industries, Inc. ................ 27,657
290 Deere & Co. ............................ 26,064
705 Harnischfeger Industries, Inc. ......... 26,437
625 Ingersoll-Rand Co. ..................... 26,094
445 NACCO Industries, Inc. (Class A) ...... 27,256
585 Timken Co. ............................. 26,691
555 Varity Corp.* .......................... 26,016
-------------
237,953
-------------
MANUFACTURED HOUSING (0.2%)
1,320 Fleetwood Enterprises, Inc. ............ 27,225
-------------
MANUFACTURING - DIVERSIFIED INDUSTRIES
(1.9%)
575 AlliedSignal, Inc. ..................... 26,881
680 Crane Co. .............................. 25,160
345 Dover Corp. ............................ 27,341
425 Illinois Tool Works Inc. ............... 25,075
475 Johnson Controls, Inc. ................. 28,619
750 Millipore Corp. ........................ 25,875
1,110 Pall Corp. ............................. $ 25,391
665 Parker-Hannifin Corp. .................. 27,099
750 Trinova Corp. .......................... 28,781
465 Tyco International Ltd. ................ 25,575
-------------
265,797
-------------
MEDICAL PRODUCTS & SUPPLIES (1.7%)
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
865 Bard (C.R.), Inc. ...................... 27,247
630 Bausch & Lomb, Inc. .................... 26,775
790 Baxter International, Inc. ............. 29,427
480 Becton, Dickinson & Co. ................ 28,260
1,670 Biomet, Inc.* .......................... 25,467
805 Boston Scientific Corp.* ............... 29,382
320 Medtronic Inc. ......................... 26,240
520 St. Jude Medical, Inc.* ................ 28,470
1,220 United States Surgical Corp. ........... 29,280
-------------
250,548
-------------
METALS & MINING (0.2%)
950 Freeport-McMoran Copper & Gold, Inc. .. 25,650
-------------
METALS - MISCELLANEOUS (0.7%)
890 ASARCO, Inc. ........................... 28,257
1,020 Cyprus Amax Minerals Co. ............... 28,432
790 Inco Ltd. (Canada) ..................... 26,761
395 Phelps Dodge Corp. ..................... 25,379
-------------
108,829
-------------
MISCELLANEOUS (2.1%)
855 Airtouch Communications, Inc.* ......... 26,932
880 American Greetings Corp. ............... 26,290
865 Corning, Inc. .......................... 27,680
1,070 Dial Corp. ............................. 25,145
605 Harcourt General, Inc. ................. 27,225
500 Harris Corp. ........................... 28,625
1,220 Jostens, Inc. .......................... 27,755
500 Minnesota Mining &
Manufacturing Co. .................... 28,312
660 Pioneer Hi-Bred International, Inc. ... 27,885
335 TRW, Inc. .............................. 24,999
1,405 Whitman Corp. .......................... 27,397
-------------
298,245
-------------
MULTI-LINE INSURANCE (0.8%)
435 Aetna Life & Casualty Co. .............. 26,916
820 Allstate Corp. (The) ................... 25,625
345 American International Group, Inc. .... 25,875
350 CIGNA Corp. ............................ 28,219
-------------
106,635
-------------
OFFICE EQUIPMENT & SUPPLIES (0.7%)
315 Alco Standard Corp. .................... 25,633
1,110 Moore Corp. Ltd. (Canada) .............. 24,420
670 Pitney Bowes, Inc. ..................... 26,884
220 Xerox Corp. ............................ 26,207
-------------
103,144
-------------
OIL & GAS DRILLING (0.4%)
885 Helmerich & Payne, Inc. ................ 25,444
3,970 Rowan Cos., Inc.* ...................... 28,782
-------------
54,226
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
OIL - DOMESTIC INTEGRATED (2.0%)
525 Amerada Hess Corp. ..................... $ 25,069
770 Ashland Oil, Inc. ...................... 26,469
240 Atlantic Richfield Co. ................. 27,660
505 Kerr-McGee Corp. ....................... 28,722
640 Louisiana Land & Exploration Co. ...... 25,440
1,170 Occidental Petroleum Corp. ............. 26,325
535 Pennzoil Co. ........................... 25,078
760 Phillips Petroleum Co. ................. 26,885
950 Sun Co., Inc. .......................... 27,906
960 Unocal Corp. ........................... 27,000
1,400 USX-Marathon Group ..................... 28,175
-------------
294,729
-------------
OIL - EXPLORATION & PRODUCTION (0.6%)
660 Burlington Resources, Inc. ............. 25,658
1,980 Oryx Energy Co. ........................ 28,463
2,990 Santa Fe Energy Resources, Inc.* ...... 28,031
-------------
82,152
-------------
OIL - INTERNATIONAL INTEGRATED (1.1%)
390 Amoco Corp. ............................ 26,228
560 Chevron Corp. .......................... 27,650
375 Exxon Corp. ............................ 27,188
270 Mobil Corp. ............................ 26,393
220 Royal Dutch Petroleum Co. (Netherlands) 27,940
415 Texaco, Inc. ........................... 27,598
-------------
162,997
-------------
OIL WELL EQUIPMENT & SERVICE (1.2%)
1,280 Baker Hughes Inc. ...................... 28,320
1,185 Dresser Industries, Inc. ............... 27,255
720 Halliburton Co. ........................ 29,250
1,150 McDermott International, Inc. .......... 28,319
410 Schlumberger Ltd.
(Netherlands Antilles) ............... 27,470
570 Western Atlas Inc.* .................... 25,650
-------------
166,264
-------------
PAPER & FOREST PRODUCTS (2.2%)
610 Boise Cascade Corp. .................... 25,544
470 Champion International Corp. ........... 26,496
700 Federal Paper Board Co., Inc. .......... 26,163
290 Georgia-Pacific Corp. .................. 25,013
305 International Paper Co. ................ 25,773
970 James River Corp. of Virginia .......... 32,374
970 Louisiana-Pacific Corp. ................ 23,886
445 Mead Corp. ............................. 26,199
625 Potlatch Corp. ......................... 26,406
455 Union Camp Corp. ....................... 25,594
585 Westvaco Corp. ......................... 26,471
560 Weyerhaeuser Co. ....................... 26,180
-------------
316,099
-------------
PERSONAL LOANS (0.4%)
580 Beneficial Corp. ....................... 27,478
515 Household International, Inc. .......... 27,038
-------------
54,516
-------------
PHOTOGRAPHY (0.4%)
480 Eastman Kodak Co. ...................... $ 27,660
650 Polaroid Corp. ......................... 27,869
-------------
55,529
-------------
POLLUTION CONTROL (0.5%)
660 Browning-Ferris Industries, Inc. ...... 25,493
2,640 Laidlaw Inc. ........................... 24,750
810 WMX Technologies, Inc. ................. 25,313
-------------
75,556
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
PROPERTY - CASUALTY INSURANCE (1.1%)
310 Chubb Corp. ............................ 26,040
195 General Re Corp. ....................... 25,862
220 Loews Corp. ............................ 26,483
460 SAFECO Corp. ........................... 26,853
560 St. Paul Companies, Inc. ............... 27,300
1,585 USF&G Corp. ............................ 26,153
-------------
158,691
-------------
PUBLISHING (0.6%)
495 Dun & Bradstreet Corp. ................. 27,844
345 McGraw-Hill, Inc. ...................... 26,522
1,050 Meredith Corp. ......................... 30,188
-------------
84,554
-------------
PUBLISHING - NEWSPAPER (1.2%)
785 Dow Jones & Co., Inc. .................. 27,868
470 Gannett Co., Inc. ...................... 25,733
450 Knight-Ridder Newspapers, Inc. ......... 25,313
1,125 New York Times Co. (Class A) ........... 28,688
1,045 Times Mirror Co. ....................... 30,044
430 Tribune Co. ............................ 27,466
-------------
165,112
-------------
RAILROADS (1.2%)
385 Burlington Northern, Inc. .............. 26,661
425 Conrail, Inc. .......................... 26,244
315 CSX Corp. .............................. 26,421
365 Norfolk Southern Corp. ................. 26,508
975 Santa Fe Pacific Corp. ................. 27,788
455 Union Pacific Corp. .................... 29,632
-------------
163,254
-------------
RESTAURANTS (1.1%)
2,480 Darden Restaurants, Inc. ............... 26,970
1,330 Luby's Cafeterias, Inc. ................ 26,268
660 McDonald's Corp. ....................... 25,493
4,045 Ryan's Family Steak Houses, Inc.* ..... 27,809
2,285 Shoney's Inc.* ......................... 27,420
1,455 Wendy's International, Inc. ............ 27,099
-------------
161,059
-------------
RETAIL - DEPARTMENT STORES (1.0%)
920 Dillard Department Stores, Inc.
(Class A) ............................ 28,520
625 May Department Stores Co. .............. 27,109
540 Mercantile Stores Co., Inc. ............ 25,178
645 Nordstrom, Inc. ........................ 25,881
560 Penney (J.C.) Co., Inc. ................ 27,090
-------------
133,778
-------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
RETAIL - DRUG STORES (0.6%)
715 Longs Drug Stores Corp. ................ $ 26,187
970 Rite Aid Corp. ......................... 27,524
510 Walgreen Co. ........................... 26,393
-------------
80,104
-------------
RETAIL - FOOD CHAINS (1.4%)
910 Albertson's Inc. ....................... 27,073
940 American Stores Co. .................... 27,613
2,200 Bruno's, Inc. .......................... 25,850
890 Giant Food, Inc. (Class A) ............. 27,145
970 Great Atlantic & Pacific Tea Co., Inc. 27,039
960 Kroger Co.* ............................ 29,880
450 Winn-Dixie Stores, Inc. ................ 25,706
-------------
190,306
-------------
RETAIL - GENERAL MERCHANDISE (0.8%)
365 Dayton Hudson Corp. .................... 27,603
1,800 KMart Corp. ............................ 28,350
820 Sears, Roebuck & Co. ................... 26,753
1,010 Wal-Mart Stores, Inc. (Class A) ....... 26,891
-------------
109,597
-------------
RETAIL - SPECIALTY (1.8%)
835 Circuit City Stores, Inc. .............. 30,999
605 Home Depot, Inc. ....................... 26,544
725 Lowe's Companies, Inc. ................. 26,734
765 Melville Corp. ......................... 27,540
950 Pep Boys-Manny Moe & Jack .............. 26,719
1,540 Price/Costco, Inc.* .................... 27,528
480 Tandy Corp. ............................ 28,500
925 Toys 'R' Us, Inc.* ..................... 25,900
1,745 Woolworth Corp. ........................ 27,266
-------------
247,730
-------------
RETAIL - SPECIALTY APPAREL (0.8%)
5,490 Charming Shoppes, Inc. ................. 26,764
770 Gap, Inc. .............................. 26,854
1,265 Limited (The), Inc. .................... 25,933
1,850 TJX Companies, Inc. .................... 27,056
-------------
106,607
-------------
SAVINGS & LOAN COMPANIES (0.6%)
1,165 Ahmanson (H.F.) & Co. .................. 26,067
590 Golden West Financial Corp. ............ 27,583
1,180 Great Western Financial Corp. .......... 25,223
-------------
78,873
-------------
SHOES (0.8%)
1,135 Brown Group Inc. ....................... 28,233
315 Nike, Inc. ............................. 28,468
740 Reebok International Ltd.
(United Kingdom) ..................... 26,548
2,615 Stride Rite Corp. ...................... 29,092
-------------
112,341
-------------
SPECIALIZED SERVICES (1.5%)
735 Block (H.&R.), Inc. .................... 27,563
855 C U C International, Inc.* ............. 25,757
1,015 Ecolab, Inc. ........................... 27,278
715 Interpublic Group of Companies, Inc. .. 26,723
865 National Service Industries, Inc. ..... 25,518
1,200 Ogden Corp. ............................ $ 26,850
1,675 Safety-Kleen Corp. ..................... 26,172
785 Service Corp. International ............ 26,788
-------------
212,649
-------------
SPECIALTY PRINTING (0.6%)
875 Deluxe Corp. ........................... 28,109
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
710 Donnelley (R.R.) & Sons Co. ............ 26,536
1,160 Harland (John H.) Co. .................. 25,665
-------------
80,310
-------------
STEEL (1.2%)
4,070 Armco, Inc.* ........................... 26,964
1,750 Bethlehem Steel Corp.* ................. 27,563
990 Inland Steel Industries, Inc.* ......... 28,463
510 Nucor Corp. ............................ 27,413
855 USX-U.S. Steel Group ................... 28,322
1,165 Worthington Industries, Inc. ........... 24,319
-------------
163,044
-------------
TELECOMMUNICATIONS - LONG DISTANCE
(0.6%)
490 AT&T Corp. ............................. 25,848
1,240 MCI Communications Corp. ............... 29,605
810 Sprint Corporation ..................... 27,743
-------------
83,196
-------------
TEXTILES (1.0%)
1,260 Fruit of the Loom, Inc. ................ 29,138
1,175 Liz Claiborne, Inc. .................... 26,878
950 Russell Corp. .......................... 26,838
715 Springs Industries, Inc. ............... 28,064
495 VF Corp. ............................... 27,349
-------------
138,267
-------------
TOBACCO (0.5%)
665 American Brands, Inc. .................. 26,517
360 Philip Morris Companies, Inc. .......... 25,785
935 UST, Inc. .............................. 25,479
-------------
77,781
-------------
TOYS (0.4%)
860 Hasbro Inc. ............................ 26,768
1,025 Mattel, Inc. ........................... 28,956
-------------
55,724
-------------
TRANSPORTATION - MISCELLANEOUS (0.6%)
415 Federal Express Corp.* ................. 28,013
1,030 Pittston Services Group ................ 25,750
1,080 Ryder System, Inc. ..................... 26,865
-------------
80,628
-------------
TRUCKERS (0.6%)
1,075 Consolidated Freightways, Inc.* ....... 25,666
505 Roadway Service, Inc. .................. 25,376
1,830 Yellow Corporation ..................... 27,679
-------------
78,721
-------------
UTILITIES - ELECTRIC (4.8%)
790 American Electric Power Co., Inc. ..... 27,255
1,050 Baltimore Gas & Electric Co. ........... 26,119
915 Carolina Power & Light Co. ............. 27,793
1,100 Central & South West Corp. ............. 28,050
</TABLE>
<PAGE>
Dean Witter Retirement Series--Value-Added Market
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- -------- -------------
<C> <S> <C>
970 CINergy Corp. .......................... $ 25,220
910 Consolidated Edison Co. of New York,
Inc. ................................. 26,390
940 Detroit Edison Co. ..................... 27,730
730 Dominion Resources, Inc. ............... 26,006
605 Duke Power Co. ......................... 25,108
1,120 Entergy Corp. .......................... 26,600
695 FPL Group, Inc. ........................ 26,584
940 General Public Utilities Corp. ......... 27,143
600 Houston Industries, Inc. ............... 26,250
1,860 Niagara Mohawk Power Corp. ............. 26,040
585 Northern States Power Co. .............. 25,886
1,190 Ohio Edison Co. ........................ 26,180
930 Pacific Gas & Electric Co. ............. 27,435
1,430 PacifiCorp ............................. 26,276
960 PECO Energy Co. ........................ 27,480
975 Public Service Enterprise Group, Inc. . 27,056
1,630 SCE Corp. .............................. 27,914
1,145 Southern Co. ........................... 25,190
820 Texas Utilities Co. .................... 27,778
1,005 Unicom Corp. ........................... 27,889
780 Union Electric Co. ..................... 27,690
-------------
669,062
-------------
UTILITIES - GAS (2.4%)
890 Coastal Corp. .......................... 27,701
715 Consolidated Natural Gas Co. ........... 26,813
895 Eastern Enterprises .................... 27,074
735 Enron Corp. ............................ 25,541
1,560 ENSERCH Corp. .......................... 27,885
1,100 NICOR, Inc. ............................ 27,913
4,200 NorAm Energy Corp. ..................... 28,875
1,235 ONEOK, Inc. ............................ 28,714
1,125 Pacific Enterprises .................... 27,141
1,100 Panhandle Eastern Corp. ................ 26,813
1,005 Peoples Energy Corp. ................... 26,381
890 Sonat, Inc. ............................ 26,700
770 Williams Cos., Inc. .................... 28,490
-------------
356,041
-------------
UTILITIES - TELEPHONE (1.8%)
1,055 Alltel Corp. ........................... $ 27,826
590 Ameritech Corp. ........................ 28,541
490 Bell Atlantic Corp. .................... 28,053
430 BellSouth Corp. ........................ 29,133
790 GTE Corp. .............................. 28,045
680 NYNEX Corp. ............................ 28,050
1,015 Pacific Telesis Group .................. 28,674
570 SBC Communications, Inc. ............... 27,431
630 U.S. West, Inc. ........................ 27,011
-------------
252,764
-------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$12,341,980) ......................... 13,463,677
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (6.3%)
U.S. GOVERNMENT AGENCIES
$400 Federal Home Loan Banks 5.66%
due 08/01/95 ............... 400,000
480 Federal Home Loan Mortgage
Corp. 5.75% due 08/01/95 ... 480,000
---------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $880,000) .. 880,000
---------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED
COST $13,221,980) (B) ....... 101.9% 14,343,677
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS ................ (1.9) (263,688)
-------- -------------
NET ASSETS ................... 100.0% $14,079,989
======== =============
</TABLE>
ADR American Depository Receipt.
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates
shown have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $13,223,017;
the aggregate gross unrealized appreciation is $1,288,521 and the
aggregate gross unrealized depreciation is $167,861, resulting in net
unrealized appreciation of $1,120,660.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<S> <C> <C>
COMMON AND PREFERRED STOCKS (95.3%)
CANADA (4.8%)
MACHINERY - DIVERSIFIED
8,000 Bombardier, Inc. (Class A) .......... $ 98,902
-----------
METALS & MINING
1,800 Barrick Gold Corp. .................. 44,835
3,000 Falconbridge Ltd. ................... 59,890
-----------
104,725
-----------
NATURAL GAS
2,000 Renaissance Energy Ltd.* ............ 41,575
-----------
OIL INTEGRATED - INTERNATIONAL
1,800 Suncor, Inc. ........................ 51,429
-----------
TELECOMMUNICATIONS
1,500 BCE Mobile Communications, Inc.* ... 51,099
-----------
TOTAL CANADA ........................ 347,730
-----------
CHILE (1.1%)
CONGLOMERATES
3,000 Madeco S.A. (ADR) ................... 77,625
-----------
DENMARK (0.8%)
TELECOMMUNICATIONS
2,000 Tele Danmark AS (ADR) ............... 57,000
-----------
FINLAND (2.5%)
MANUFACTURING
1,600 Nokia AB (Series A) ................. 107,060
-----------
METALS & MINING
1,900 Outokumpu Oy (A Shares) ............. 37,100
-----------
PAPER & FOREST PRODUCTS
800 Metsa Serla Oy (B Shares) ........... 37,147
-----------
TOTAL FINLAND ....................... 181,307
-----------
FRANCE (5.1%)
BUILDING MATERIALS
500 Compagnie de Saint Gobain ........... 66,437
-----------
ENGINEERING & CONSTRUCTION
500 Bouygues ............................ 62,049
-----------
FINANCIAL SERVICES
700 Compagnie Bancaire S.A. ............. 84,237
-----------
MACHINERY - DIVERSIFIED
300 Sidel S.A. .......................... 107,051
-----------
MISCELLANEOUS
100 De Dietrich et Compagnie S.A. ...... 51,395
-----------
TOTAL FRANCE ........................ 371,169
-----------
GERMANY (5.4%)
ENGINEERING & CONSTRUCTION
100 Hochtief AG ......................... 55,852
-----------
MACHINERY - DIVERSIFIED
400 Jungheinrich AG (Pref.) ............. 92,077
150 Mannesmann AG ....................... 49,986
-----------
142,063
-----------
METALS
300 Degussa AG .......................... $ 99,365
-----------
PHARMACEUTICALS
200 Gehe AG ............................. 97,402
-----------
TOTAL GERMANY ....................... 394,682
-----------
HONG KONG (4.7%)
</TABLE>
<PAGE>
Dean Witter Retirement Series--Global Equity
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
BANKING
3,900 HSBC Holdings PLC ................... 52,923
-----------
CONGLOMERATES
15,000 Citic Pacific, Ltd. ................. 39,934
-----------
REAL ESTATE
16,000 Sun Hung Kai Properties Ltd. ....... 120,449
-----------
TELECOMMUNICATIONS
4,900 Hong Kong Telecommunications, Ltd.
(ADR) ............................. 89,425
-----------
TRANSPORTATION
28,300 Cathay Pacific Airways Ltd. ......... 40,415
-----------
TOTAL HONG KONG ..................... 343,146
-----------
ITALY (2.5%)
AUTOMOTIVE
13,000 Fiat SpA ............................ 50,366
-----------
TELECOMMUNICATIONS
17,000 Stet Societa Finanziaria Telfonica
SpA ............................... 53,158
-----------
TEXTILES
18,000 Bassetti SpA ........................ 78,064
-----------
TOTAL ITALY ......................... 181,588
-----------
JAPAN (20.8%)
BUILDING & CONSTRUCTION
1,000 Kyocera Corp. ....................... 86,248
8,000 Nishimatsu Construction ............. 103,226
-----------
189,474
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT
14,000 NEC Corp. ........................... 166,384
5,000 Rohm Co. ............................ 282,965
-----------
449,349
-----------
ELECTRONICS
6,000 Canon, Inc. ......................... 108,659
1,000 Secom ............................... 61,573
-----------
170,232
-----------
HEALTH & PERSONAL CARE
8,000 Santen Pharmaceutical Co. ........... 215,507
-----------
MACHINERY - DIVERSIFIED
26,000 Mitsubishi Heavy Industries, Ltd. .. 187,459
-----------
MANUFACTURING
15,000 Hitachi Cable ....................... 102,886
-----------
MULTI-INDUSTRY
25,000 Mitsui & Co. ........................ 202,886
-----------
TOTAL JAPAN ......................... 1,517,793
-----------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Global Equity
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
MEXICO (0.8%)
BANKING
6,000 Grupo Financiero Banamex Accival
S.A. de C.V. ...................... $ 12,669
-----------
BUILDING MATERIALS
5,687 Cementos de Mexico S.A. (B Shares) . 23,494
-----------
CONGLOMERATES
3,500 Grupo Carso S.A. de C.V. (A Shares)* 21,975
-----------
TOTAL MEXICO ........................ 58,138
-----------
NETHERLANDS (2.0%)
ELECTRICAL EQUIPMENT
1,900 Philips Electronics NV .............. 93,360
-----------
PUBLISHING
600 Wolters Kluwer NV ................... 54,289
-----------
TOTAL NETHERLANDS ................... 147,649
-----------
NORWAY (1.1%)
SHIPPING
1,800 Kvaerner AS (B Shares) .............. 83,571
-----------
SINGAPORE (3.2%)
BANKING
12,000 United Overseas Bank, Ltd. .......... 119,698
-----------
MACHINERY - DIVERSIFIED
12,500 Keppel Corp., Ltd. .................. 111,231
-----------
TOTAL SINGAPORE ..................... 230,929
-----------
SPAIN (2.1%)
MISCELLANEOUS
2,000 Repsol S.A. ......................... 66,750
-----------
STEEL
600 Acerinox S.A. ....................... 84,741
-----------
TOTAL SPAIN ......................... 151,491
-----------
SWEDEN (2.9%)
BUILDING & CONSTRUCTION
2,900 Svedala Industri (Series AB Free) .. 86,169
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT
2,250 Ericsson AB (B Shares) .............. 42,501
-----------
INTERNATIONAL TRADE
2,500 Kinnevik AB (Series B Free) ......... 82,066
-----------
TOTAL SWEDEN ........................ 210,736
-----------
SWITZERLAND (1.3%)
HEALTH & PERSONAL CARE
14 Roche Holdings AG ................... 95,258
-----------
UNITED KINGDOM (6.3%)
BUSINESS SERVICES
5,100 Reuters Holdings PLC ................ 42,719
-----------
FOOD PROCESSING
4,000 Unilever PLC ........................ 81,690
-----------
FOODS & BEVERAGES
10,000 Allied Domecq PLC ................... 86,795
-----------
RETAIL
12,000 Marks & Spencer PLC ................. $ 84,338
-----------
TELECOMMUNICATIONS
16,000 Chubb Security PLC .................. 84,498
-----------
TRANSPORTATION - MISCELLANEOUS
10,000 British Airport Authority PLC ...... 84,003
------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Global Equity
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
TOTAL UNITED KINGDOM ................ 464,043
-----------
UNITED STATES (27.9%)
AIRCRAFT & AEROSPACE
1,000 Boeing Co. .......................... 67,000
-----------
ALUMINUM
1,600 Aluminum Co. of America ............. 91,000
-----------
BEVERAGES - SOFT DRINKS
1,700 PepsiCo Inc. ........................ 79,687
-----------
BROADCAST MEDIA
2,550 Infinity Broadcasting Corp.* ....... 94,350
-----------
COMPUTER SOFTWARE
3,600 Informix Corp. ...................... 106,200
1,100 Microsoft Corp.* .................... 99,412
1,400 Peoplesoft, Inc. .................... 99,400
-----------
305,012
-----------
DRUGS & HEALTHCARE
1,100 Johnson & Johnson ................... 78,925
-----------
ELECTRONICS - SEMICONDUCTORS
2,200 Motorola, Inc. ...................... 168,575
-----------
ELECTRONICS -
SEMICONDUCTORS/COMPONENTS .........
1,400 Intel Corp. ......................... 90,825
-----------
INSURANCE
1,500 SunAmerica Inc. ..................... 85,875
-----------
HARDWARE & TOOLS
2,500 Black & Decker Corp. ................ 79,063
-----------
HEALTH CARE DRUGS
1,800 Pfizer, Inc. ........................ 90,900
-----------
HEALTH EQUIPMENT & SERVICES
2,000 Columbia/HCA Healthcare Corp. ...... 98,000
-----------
INSURANCE
1,162 American International Group, Inc. . 87,188
-----------
MANUFACTURING
1,500 Loral Corp. ......................... 84,000
-----------
MEDICAL PRODUCTS & SUPPLIES
1,000 Medtronic Inc. ...................... 82,000
-----------
OIL INTEGRATED - DOMESTIC
1,000 Mobil Corp. ......................... 97,750
-----------
RESTAURANTS
2,000 McDonald's Corp. .................... 77,250
-----------
SOAP & HOUSEHOLD PRODUCTS
1,300 Procter & Gamble Co. ................ 89,538
-----------
TELECOMMUNICATION EQUIPMENT
1,700 DSC Communications Corp.* ........... 90,950
</TABLE>
<PAGE>
Dean Witter Retirement Series--Global Equity
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY
1,000 Federal National Mortgage
Association ....................... $ 93,625
-----------
TOTAL UNITED STATES ................. 2,031,513
-----------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $6,421,425) ...... 6,945,368
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (4.0%)
U.S. GOVERNMENT AGENCIES
$120 Federal Farm Credit Bank 5.68%
due 08/04/95 .................. 119,943
170 Federal Home Loan Mortgage Corp.
5.66% due 08/02/95 ............ 169,973
------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $289,916) ..... 289,916
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $6,711,341) (b)
99.3% $7,235,284
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES .................. 0.7 51,021
-------- ------------
NET ASSETS ....................... 100.0% $7,286,305
======== ============
</TABLE>
ADR American Depository Receipt.
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates
shown have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $6,711,341; the
aggregate gross unrealized appreciation is $680,413 and the aggregate
gross unrealized depreciation is $156,470, resulting in net
unrealized appreciation of $523,943.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES--GLOBAL EQUITY
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION July 31, 1995
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------- ------------ ------------
<S> <C> <C>
Aircraft & Aerospace .... $ 67,000 0.9%
Aluminum ................. 91,000 1.2
Automotive ............... 50,366 0.7
Banking .................. 185,290 2.5
Beverages - Soft Drinks . 79,687 1.1
Broadcast Media .......... 94,350 1.3
Building & Construction . 275,643 3.8
Building Materials ....... 89,931 1.2
Business Services ........ 42,719 0.6
Computer Software ........ 305,012 4.2
Conglomerates ............ 139,534 1.9
Drugs & Healthcare ....... 78,925 1.1
Electrical Equipment .... 93,360 1.3
Electronic & Electrical
Equipment ............... 491,850 6.8
Electronics .............. 170,232 2.3
Electronics -
Semiconductors .......... 168,575 2.3
Electronics -
Semiconductors/
Components .............. 90,825 1.2
Engineering &
Construction ............ 117,901 1.6
Financial Services ....... 170,112 2.3
Food Processing .......... 81,690 1.1
Foods & Beverages ........ 86,795 1.2
Hardware & Tools ......... 79,063 1.1
Health & Personal Care .. 310,765 4.3
Health Care Drugs ........ 90,900 1.2
Health Equipment &
Services ................ 180,000 2.5
Insurance ................ 87,188 1.2
International Trade ..... $ 82,066 1.1%
Machinery - Diversified . 646,706 8.9
Manufacturing ............ 293,946 4.0
Metals ................... 99,365 1.4
Metals & Mining .......... 141,825 2.0
Miscellaneous ............ 175,145 2.4
Multi-Industry ........... 202,886 2.8
Natural Gas .............. 41,575 0.6
Oil Integrated - Domestic 97,750 1.3
Oil Integrated -
International ........... 51,429 0.7
Paper & Forest Products . 37,147 0.5
Pharmaceuticals .......... 97,402 1.3
Publishing ............... 54,289 0.7
Real Estate .............. 120,449 1.7
Restaurants .............. 77,250 1.1
Retail ................... 84,338 1.2
Shipping ................. 83,571 1.1
Soap & Household Products 89,538 1.2
Steel .................... 84,741 1.2
Telecommunication
Equipment ............... 90,950 1.2
Telecommunications ....... 278,180 3.8
Textiles ................. 78,064 1.1
Transportation ........... 40,415 0.6
Transportation -
Miscellaneous ........... 84,003 1.2
U.S. Government Agencies 383,541 5.3
------------ ------------
$7,235,284 99.3%
============ ============
</TABLE>
SUMMARY OF INVESTMENTS BY TYPE
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ----------------------- ------------ ------------
<S> <C> <C>
Common Stocks .......... $6,853,291 94.0%
Preferred Stocks ....... 92,077 1.3
Short-Term Investments 289,916 4.0
------------ ------------
$7,235,284 99.3%
============ ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES--STRATEGIST
PORTFOLIO OF INVESTMENTS July 31, 1995
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (51.5%)
AEROSPACE (0.1%)
205 Honeywell, Inc. ...................... $ 8,789
------------
AIRCRAFT & AEROSPACE (0.8%)
820 Boeing Co. ........................... 54,940
------------
ALUMINUM (0.1%)
130 Reynolds Metals Co. .................. 8,125
------------
AUTOMOTIVE (2.2%)
1,200 Daimler Benz AG (ADR) (Germany) ..... 58,350
210 Ford Motor Co. ....................... 6,064
710 General Motors Corp. ................. 34,612
3,600 Nissan Motor Co., Ltd. (ADR) (Japan) 50,400
------------
149,426
------------
BANKS (1.3%)
1,400 Citicorp ............................. 87,325
------------
BANKS - MONEY CENTER (0.7%)
980 Chemical Banking Corp. ............... 50,592
------------
BANKS - REGIONAL (0.7%)
250 Wells Fargo & Co. .................... 45,594
------------
BEVERAGES - SOFT DRINKS (0.1%)
180 PepsiCo Inc. ......................... 8,437
------------
CHEMICALS - SPECIALTY (0.8%)
1,600 Georgia Gulf Corp. ................... 53,800
------------
COMPUTER SERVICES (1.2%)
1,600 Diebold, Inc. ........................ 74,000
210 General Motors Corp. (Class E) ...... 9,240
------------
83,240
------------
COMPUTERS - SYSTEMS (1.5%)
600 Hewlett-Packard Co. .................. 46,725
1,100 Sun Microsystems, Inc.* .............. 52,800
------------
99,525
------------
CONSUMER PRODUCTS (0.1%)
176 RJR Nabisco Holdings Corp. ........... 4,862
------------
DRUGS (3.0%)
2,600 American Home Products Corp. ......... 205,400
------------
DRUGS & HEALTHCARE (6.2%)
5,150 Abbott Laboratories .................. 206,000
3,000 Johnson & Johnson .................... 215,250
------------
421,250
------------
ELECTRICAL EQUIPMENT (0.2%)
110 Emerson Electric Co. ................. 7,782
130 General Electric Co. ................. 7,670
------------
15,452
------------
ELECTRONIC & ELECTRICAL EQUIPMENT
(0.5%)
600 Sony Corp. (ADR) (Japan) ............. 32,550
------------
ELECTRONICS - SEMICONDUCTORS/
COMPONENTS (6.7%)
1,400 Intel Corp. .......................... 90,825
4,600 Micron Technology, Inc. .............. 287,500
1,000 Motorola, Inc. ....................... 76,625
------------
454,950
------------
ENTERTAINMENT (1.3%)
1,400 Polygram N.V. (ADR) (Netherlands) ... $ 88,200
------------
ENTERTAINMENT/GAMING (1.7%) ..........
</TABLE>
<PAGE>
Dean Witter Retirement Series--Strategist
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
3,600 Circus Circus Enterprises, Inc.* .... 107,100
145 Harrah's Entertainment, Inc. ......... 3,897
------------
110,997
------------
HEALTH CARE - MISCELLANEOUS (3.6%)
9,450 Humana, Inc.* ........................ 183,094
1,800 U.S. Healthcare, Inc. ................ 56,925
------------
240,019
------------
HOME BUILDING (0.7%)
1,600 Centex Corp. ......................... 44,800
------------
HOTELS/MOTELS (0.0%)
72 Promus Hotel Corporation* ............ 1,773
------------
INSURANCE (0.8%)
1,060 Travelers Group, Inc. ................ 50,218
------------
LIFE INSURANCE (0.1%)
240 Providian Corp. ...................... 8,610
------------
NATURAL GAS (2.0%)
20,000 NorAm Energy Corp. ................... 137,500
------------
OIL DRILLING & SERVICES (0.7%)
660 Schlumberger, Ltd. ................... 44,220
------------
OIL INTEGRATED - INTERNATIONAL (1.3%)
850 Chevron Corp. ........................ 41,969
100 Exxon Corp. .......................... 7,250
570 Texaco, Inc. ......................... 37,905
------------
87,124
------------
POLLUTION CONTROL (0.6%)
1,200 WMX Technologies, Inc. ............... 37,500
------------
RETAIL (0.7%)
120 Penney (J.C.) Co., Inc. .............. 5,805
1,500 Wal-Mart Stores, Inc. (Class A) ..... 39,938
------------
45,743
------------
RETAIL - SPECIALTY (1.1%)
7,875 Pier 1 Imports, Inc. ................. 76,781
------------
RETAIL - SPECIALTY APPAREL (1.0%)
1,950 Gap, Inc. ............................ 68,006
------------
TELECOMMUNICATIONS (3.7%)
7,950 Airtouch Communications, Inc.* ...... 250,425
------------
TEXTILES - APPAREL MANUFACTURERS
(3.7%)
11,000 Liz Claiborne, Inc. .................. 251,625
------------
TOBACCO (1.1%)
1,000 Philip Morris Companies, Inc. ....... 71,625
------------
TRANSPORTATION - SHIPPING (0.1%)
90 Federal Express Corp.* ............... 6,075
------------
U.S. GOVERNMENT AGENCY (1.1%)
785 Federal National Mortgage Association 73,496
------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$2,911,659) ........................ 3,478,994
------------
</TABLE>
<PAGE>
Dean Witter Retirement Series--Strategist
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (16.9%)
AUTOMOTIVE FINANCE (0.2%)
$ 15 Ford Capital BV 9.375% due 05/15/01
(Netherlands) .................... $ 16,724
------------
BANKS (4.4%)
100 Banco Central Hispano 7.50% due
06/15/05 (Cayman Islands) ........ 98,144
100 Bank of Boston Corp. 6.875% due
07/15/03 ......................... 98,229
50 BCO Commercio Exterior 8.625% due
06/02/00 (Columbia) - 144A** ..... 50,750
50 Midland Bank PLC 7.65% due 05/01/25
(United Kingdom) ................. 52,702
------------
299,825
------------
BANKS - MONEY CENTER (0.7%)
50 Chemical Banking Corp. 7.00% due
06/01/05 ......................... 49,273
------------
BROADCAST MEDIA (0.7%)
50 News American Holdings, Inc. 8.25%
due 08/10/18 ..................... 50,676
------------
FINANCIAL (2.2%)
50 BHP Finance Ltd. 5.625% due
11/01/00 (Australia) ............. 47,597
50 Commercial Credit Group, Inc. 7.75%
due 03/01/05 ..................... 52,250
50 Salomon, Inc. 6.75% due 08/15/03 .. 46,254
------------
146,101
------------
FOREIGN GOVERNMENT AGENCY (2.0%)
100 Italy (Republic of) 6.875% due
09/27/23 ......................... 87,480
50 Province of Ontario 7.00% due
08/04/05 (Canada) ................ 50,062
------------
137,542
------------
HOSPITAL MANAGEMENT (0.8%)
50 Columbia/HCA Healthcare Corp. 8.85%
due 01/01/07 ..................... 55,664
------------
INDUSTRIALS (4.5%)
50 Aramark Services Co. 8.15% due
05/01/05 ......................... 51,558
100 Repsol International Finance 7.00%
due 08/01/05 ..................... 100,020
50 RJR Nabisco, Inc. 8.75% due
08/15/05 ......................... 50,040
50 TCI Communications, Inc. 8.75% due
08/01/15 ......................... 50,750
50 Time Warner Entertainment Co.
8.375% due 07/15/33 .............. 48,856
------------
301,224
------------
STEEL & IRON (0.2%)
$ 10 Pohang Iron & Steel Co., Ltd. 7.50%
due 08/01/02 (South Korea) ....... $ 10,164
------------
TRANSPORTATION (0.9%)
50 United Air Lines, Inc. 11.21% due
05/01/14 ......................... 61,331
------------
UTILITIES - ELECTRIC (0.3%)
20 Long Island Lighting Co. 6.25% due
07/15/01 ......................... 18,322
------------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $1,136,110) ................. 1,146,846
------------
U.S. GOVERNMENT & AGENCIES
OBLIGATIONS (23.7%)
200 Federal Home Loan Banks 7.78% due
01/30/97 ......................... 201,625
170 U.S. Treasury Bond 8.125% due
08/15/19 ......................... 193,508
</TABLE>
<PAGE>
Dean Witter Retirement Series--Strategist
Portfolio of Investments July 31, 1995 (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------------------------------------- ------------
<C> <S> <C>
100 U.S. Treasury Bond 7.50% due
11/15/24 ......................... 107,938
275 U.S. Treasury Note 6.50% due
05/15/97 ......................... 277,836
75 U.S. Treasury Note 7.875% due
01/15/98 ......................... 78,199
85 U.S. Treasury Note 5.25% due
07/31/98 ......................... 83,194
50 U.S. Treasury Note 6.375% due
01/15/99 ......................... 50,359
235 U.S. Treasury Note 6.50% due
04/30/99 ......................... 237,864
145 U.S. Treasury Note 6.875% due
08/31/99 ......................... 148,693
25 U.S. Treasury Note 7.875% due
11/15/99 ......................... 26,582
20 U.S. Treasury Note 6.75% due
04/30/00 ......................... 20,447
50 U.S. Treasury Note 7.50% due
11/15/01 ......................... 53,086
125 U.S. Treasury Note 6.25% due
02/15/03 ......................... 123,965
------------
TOTAL U.S. GOVERNMENT & AGENCIES
OBLIGATIONS
(IDENTIFIED COST $1,578,468) ..... 1,603,296
------------
<PAGE>
Dean Witter Retirement Series--Strategist
Portfolio of Investments July 31, 1995 (continued)
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ------------- ------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (A) (7.0%)
U.S. GOVERNMENT AGENCIES
$290 Federal Home Loan Mortgage Corp.
5.65% due 08/02/95 ............... $ 289,954
180 Federal National Mortgage
Association 5.69% due 08/03/95 ... 179,943
------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $469,897) ... ... 469,897
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $6,096,134) (b) 99.1% 6,699,033
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES .................. 0.9 59,659
-------- -----------
NET ASSETS ....................... 100.0% $6,758,692
======== ===========
</TABLE>
ADR American Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
(a) Securities were purchased on a discount basis. The interest rates
shown have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $6,096,900; the
aggregate gross unrealized appreciation is $679,840 and the aggregate
gross unrealized depreciation is $77,707, resulting in net unrealized
appreciation of $602,133.
See Notes to Financial Statements
<PAGE>
DEAN WITTER RETIREMENT SERIES
STATEMENTS OF ASSETS AND LIABILITIES July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. U.S. INTERMEDIATE
GOVERNMENT GOVERNMENT INCOME
LIQUID ASSET MONEY MARKET SECURITIES SECURITIES
-------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value * .................. $35,642,081 $10,700,712 $5,183,841 $ 947,569
Cash ................................................... 4,801 1,670 14,596 35,535
Receivable for:
Investments sold ...................................... -- -- -- 23,687
Shares of beneficial interest sold .................... 819 4,110 8,877 1,141
Dividends ............................................. -- -- -- --
Interest .............................................. 10,478 -- 9,593 13,922
Foreign withholding taxes reclaimed ................... -- -- -- --
Deferred organizational expenses ....................... 6,583 6,738 6,652 6,680
Prepaid expenses and other assets ...................... 315 3,112 3,381 237
Receivable from affiliate .............................. 28,210 18,828 20,189 17,354
-------------- ------------- ------------ --------------
TOTAL ASSETS ......................................... 35,693,287 10,735,170 5,247,129 1,046,125
-------------- ------------- ------------ --------------
LIABILITIES:
Payable for:
Investments purchased ................................. -- -- 989,826 24,875
Shares of beneficial interest repurchased ............. 26,935 11,678 15,581 2,539
Dividends to shareholders ............................. -- -- 2,675 664
Accrued expenses and other payables .................... 28,596 21,940 23,570 17,588
Organizational expenses payable ........................ 6,583 6,738 6,652 6,680
-------------- ------------- ------------ --------------
TOTAL LIABILITIES .................................... 62,114 40,356 1,038,304 52,346
-------------- ------------- ------------ --------------
NET ASSETS:
Paid-in-capital ........................................ 35,631,144 10,694,809 4,288,505 993,268
Accumulated undistributed net investment income ....... 29 5 -- 426
Accumulated undistributed net realized gain
(accumulated
net realized loss) .................................... -- -- (1,824) 3,087
Net unrealized appreciation (depreciation) ............. -- -- (77,856) (3,002)
-------------- ------------- ------------ --------------
NET ASSETS ........................................... $35,631,173 $10,694,814 $4,208,825 $ 993,779
============== ============= ============ ==============
*IDENTIFIED COST ....................................... $35,642,081 $10,700,712 $5,261,697 $ 950,571
============== ============= ============ ==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING .............. 35,631,144 10,694,809 433,478 103,235
============== ============= ============ ==============
NET ASSET VALUE PER SHARE (unlimited authorized shares
of $.01 par value) .................................... $1.00 $1.00 $9.71 $9.63
============== ============= ============ ==============
</TABLE>
+ Includes $44 of dividends receivable from Dean Witter, Discover &
Co., an affiliate of Dean Witter InterCapital Inc. (the "Investment
Manager").
See Notes to Financial Statements
<PAGE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED
VALUE GROWTH GROWTH UTILITIES MARKET GLOBAL EQUITY STRATEGIST
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$22,359,891 $662,006 $35,489,969 $5,312,694 $14,343,677 $7,235,284 $6,699,033
-- 21,618 4,639 19,013 20,877 26,451 11,785
660,161 -- -- -- 12,958 -- 101,497
54,908 2,640 104,923 32,035 7,873 21,295 8,824
7,279 317 53,168 22,560 10,689+ 5,397 2,738
76 -- -- 1,263 -- -- 43,122
197 -- -- -- -- 3,519 144
6,830 6,830 6,644 6,652 6,830 6,652 6,644
2,331 431 2,756 3,512 188 1,755 2,231
23,914 14,960 32,879 14,785 18,181 25,055 15,283
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
23,115,587 708,802 35,694,978 5,412,514 14,421,273 7,325,408 6,891,301
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
468,561 9,075 220,868 -- 315,887 -- 99,702
32,547 -- 27,810 7,739 198 5,623 8,697
-- -- -- -- -- -- --
26,162 15,391 35,635 18,303 18,369 26,828 17,566
6,830 6,830 6,644 6,652 6,830 6,652 6,644
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
534,100 31,296 290,957 32,694 341,284 39,103 132,609
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
18,239,931 613,332 30,404,477 5,091,039 12,820,696 6,741,797 5,959,758
149,207 3,673 304,765 59,239 98,210 91,401 131,775
627,839 (1,846) 95,681 (117,414) 39,386 (70,983) 64,260
3,564,510 62,347 4,599,098 346,956 1,121,697 524,090 602,899
- ------------- ---------- ------------- ------------ ------------- --------------- ------------
$22,581,487 $677,506 $35,404,021 $5,379,820 $14,079,989 $7,286,305 $6,758,692
============= ========== ============= ============ ============= =============== ============
$18,795,381 $599,659 $30,890,871 $4,965,738 $13,221,980 $6,711,341 $6,096,134
============= ========== ============= ============ ============= =============== ============
1,723,154 60,665 2,706,023 478,123 1,100,080 652,573 599,295
============= ========== ============= ============ ============= =============== ============
$13.10 $11.17 $13.08 $11.25 $12.80 $11.17 $11.28
============= ========== ============= ============ ============= =============== ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
STATEMENTS OF OPERATIONS For the year ended July 31, 1995
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. U.S. INTERMEDIATE
GOVERNMENT GOVERNMENT INCOME
LIQUID ASSET MONEY MARKET SECURITIES SECURITIES
-------------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME
Interest ............................................ $518,526 $ 83,800 $199,657 $ 40,524
Dividends ........................................... -- -- -- --
-------------- ------------ ------------ --------------
TOTAL INCOME ...................................... 518,526 83,800 199,657 40,524
-------------- ------------ ------------ --------------
EXPENSES
Investment management fee ........................... 42,333 6,841 22,158 4,006
Transfer agent fees and expenses .................... 15,227 10,269 19,545 5,905
Shareholder reports and notices ..................... 3,042 1,855 6,685 1,187
Professional fees ................................... 19,938 18,656 25,952 17,906
Registration fees ................................... 13,974 13,867 2,031 3,072
Custodian fees ...................................... 510 525 111 --
Organizational expenses ............................. 2,727 2,727 2,727 2,727
Other ............................................... 711 534 1,361 733
-------------- ------------ ------------ --------------
Total Expenses before Amounts Waived/Assumed ..... 98,462 55,274 80,570 35,536
Less: Amounts Waived/Assumed ...................... (98,462) (55,274) (80,570) (35,536)
-------------- ------------ ------------ --------------
Total Expenses after Amounts Waived/Assumed ...... -- -- -- --
-------------- ------------ ------------ --------------
NET INVESTMENT INCOME ........................... 518,526 83,800 199,657 40,524
-------------- ------------ ------------ --------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments ......................................... -- -- (1,820) 3,997
Foreign exchange transactions ....................... -- -- -- --
-------------- ------------ ------------ --------------
TOTAL GAIN (LOSS) ................................. -- -- (1,820) 3,997
-------------- ------------ ------------ --------------
Net change in unrealized appreciation/depreciation
on:
Investments ......................................... -- -- 48,200 12,308
Translation of other assets and liabilities
denominated in foreign currencies .................. -- -- -- --
-------------- ------------ ------------ --------------
TOTAL APPRECIATION ................................ -- -- 48,200 12,308
-------------- ------------ ------------ --------------
NET GAIN .......................................... -- -- 46,380 16,305
-------------- ------------ ------------ --------------
NET INCREASE .................................... $518,526 $ 83,800 $246,037 $ 56,829
============== ============ ============ ==============
</TABLE>
* Net of $626, $6, $3,570, $890, $349, $5,895, $1,091 in foreign
witholding tax, respectively.
+ Includes $157 of dividend income from Dean Witter, Discover & Co.
See Notes to Financial Statements
<PAGE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED
VALUE GROWTH GROWTH UTILITIES MARKET GLOBAL EQUITY STRATEGIST
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 109,299 $ 129 $ 13,201 $ 21,699 $ 19,746 $ 67,484 $ 156,513
130,973* 4,911* 819,339* 156,527* 139,199*+ 53,707* 37,923*
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
240,272 5,040 832,540 178,226 158,945 121,191 194,436
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
112,560 3,006 179,195 30,931 31,221 44,432 40,226
30,182 1,046 42,685 16,544 5,314 14,829 27,595
19,031 1,221 23,438 9,294 1,930 14,521 5,536
16,162 28,699 16,162 16,958 28,496 17,987 18,923
7,196 3,197 8,650 1,521 5,568 5,000 3,967
212 -- 43 154 84 197 430
2,727 2,727 2,727 2,727 2,727 2,727 2,727
38 522 -- 747 875 121 1,656
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
188,108 40,418 272,900 78,876 76,215 99,814 101,060
(188,108) (40,418) (272,900) (78,876) (76,215) (99,814) (101,060)
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
-- -- -- -- -- -- --
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
240,272 5,040 832,540 178,226 158,945 121,191 194,436
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
1,027,333 924 160,385 (111,170) 55,495 (66,417) 64,346
-- -- -- -- -- 462 --
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
1,027,333 924 160,385 (111,170) 55,495 (65,955) 64,346
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
3,493,914 67,202 4,782,860 449,814 1,097,897 520,690 655,133
-- -- -- -- -- 125 --
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
3,493,914 67,202 4,782,860 449,814 1,097,897 520,815 655,133
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
4,521,247 68,126 4,943,245 338,644 1,153,392 454,860 719,479
- ------------ ---------- ------------ ----------- ------------- --------------- ------------
$4,761,519 $ 73,166 $5,775,785 $ 516,870 $1,312,337 $576,051 $ 913,915
============ ========== ============ =========== ============= =============== ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
For the year ended July 31,
<TABLE>
<CAPTION>
U.S.
LIQUID GOVERNMENT
ASSET MONEY MARKET
----------------------------- ----------------------------
1995 1994 1995 1994
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................. $ 518,526 $ 42,583 $ 83,800 $ 19,117
Net realized gain (loss) .......................... -- -- -- --
Net change in unrealized appreciation/depreciation -- -- -- --
-------------- ------------- ------------- -------------
Net increase (decrease) ......................... 518,526 42,583 83,800 19,117
-------------- ------------- ------------- -------------
Dividends and distributions to shareholders from:
Net investment income ............................. (518,501) (42,579) (83,795) (19,117)
Net realized gain ................................. -- -- -- --
-------------- ------------- ------------- -------------
Total ........................................... (518,501) (42,579) (83,795) (19,117)
-------------- ------------- ------------- -------------
Transactions in shares of beneficial interest:
Net proceeds from sales ........................... 51,847,905 3,665,368 11,309,909 2,044,990
Reinvestment of dividends and distributions ...... 518,501 42,578 83,795 19,120
Cost of shares repurchased ........................ (18,259,628) (3,264,711) (1,253,703) (1,634,603)
-------------- ------------- ------------- -------------
Net increase .................................... 34,106,778 443,235 10,140,001 429,507
-------------- ------------- ------------- -------------
Total increase .................................. 34,106,803 443,239 10,140,006 429,507
NET ASSETS:
Beginning of period ................................ 1,524,370 1,081,131 554,808 125,301
-------------- ------------- ------------- -------------
END OF PERIOD ...................................... $ 35,631,173 $ 1,524,370 $10,694,814 $ 554,808
============== ============= ============= =============
$
Undistributed Net Investment Income ................ $ 29 $ 4 $ 5 --
============== ============= ============= =============
SHARES ISSUED AND REPURCHASED:
Sold ............................................... 51,847,905 3,665,368 11,309,909 2,044,990
Reinvestment of dividends and distributions ....... 518,501 42,578 83,796 19,120
Repurchased ........................................ (18,259,628) (3,264,711) (1,253,704) (1,634,603)
-------------- ------------- ------------- -------------
Net increase .................................... 34,106,778 443,235 10,140,001 429,507
============== ============= ============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT INTERMEDIATE INCOME AMERICAN
SECURITIES SECURITIES VALUE
- --------------------------- ----------------------- ---------------------------
1995 1994 1995 1994 1995 1994
- ------------- ------------ ----------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
$ 199,657 $ 104,510 $ 40,524 $ 16,488 $ 240,274 $ 47,273
(1,820) (3) 3,997 (910) 1,027,331 (395,854)
48,200 (131,815) 12,308 (15,055) 3,493,914 66,521
- ------------- ------------ ----------- ---------- ------------- ------------
246,037 (27,308) 56,829 523 4,761,519 (282,060)
- ------------- ------------ ----------- ---------- ------------- ------------
(200,544) (103,806) (40,260) (16,354) (138,219) (1,940)
-- -- -- -- (1,962) (3,640)
- ------------- ------------ ----------- ---------- ------------- ------------
(200,544) (103,806) (40,260) (16,354) (140,181) (5,580)
- ------------- ------------ ----------- ---------- ------------- ------------
2,981,288 1,881,846 601,204 342,781 13,053,502 7,750,006
190,802 94,465 39,011 16,235 136,829 5,505
(1,962,783) (646,720) (123,468) (64,630) (2,070,877) (935,273)
- ------------- ------------ ----------- ---------- ------------- ------------
1,209,307 1,329,591 516,747 294,386 11,119,454 6,820,238
- ------------- ------------ ----------- ---------- ------------- ------------
1,254,800 1,198,477 533,316 278,555 15,740,792 6,532,598
2,954,025 1,755,548 460,463 181,908 6,840,695 308,097
- ------------- ------------ ----------- ---------- ------------- ------------
$ 4,208,825 $2,954,025 $ 993,779 $460,463 $22,581,487 $6,840,695
============= ============ =========== ========== ============= ============
$
-- $ 887 $ 426 $ 162 $ 149,207 $ 47,154
============= ============ =========== ========== ============= ============
312,897 191,048 63,283 35,727 1,204,547 749,123
20,021 9,284 4,153 1,683 13,574 527
(208,493) (65,859) (13,120) (6,715) (184,040) (91,227)
- ------------- ------------ ----------- ---------- ------------- ------------
124,425 134,473 54,316 30,695 1,034,081 658,423
============= ============ =========== ========== ============= ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- -----------------------------------------------------------------------------
For the year ended July 31,
<TABLE>
<CAPTION>
CAPITAL DIVIDEND
GROWTH GROWTH
---------------------- ----------------------------
1995 1994 1995 1994
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................. $ 5,040 $ 2,653 $ 832,540 $ 236,186
Net realized gain (loss) .......................... 924 (2,073) 160,385 139,230
Net change in unrealized appreciation/depreciation 67,202 8,318 4,782,860 (222,761)
---------- ---------- ------------- -------------
Net increase (decrease) ......................... 73,166 8,898 5,775,785 152,655
---------- ---------- ------------- -------------
Dividends and distributions to shareholders from:
Net investment income ............................. (3,260) (760) (622,946) (148,288)
Net realized gain ................................. -- -- (202,526) (5,490)
---------- ---------- ------------- -------------
Total ........................................... (3,260) (760) (825,472) (153,778)
---------- ---------- ------------- -------------
Transactions in shares of beneficial interest:
Net proceeds from sales ........................... 419,996 83,346 22,705,910 11,474,602
Reinvestment of dividends and distributions ...... 3,185 760 787,071 121,365
Cost of shares repurchased ........................ (30,293) (12,127) (5,860,692) (1,190,364)
---------- ---------- ------------- -------------
Net increase .................................... 392,888 71,979 17,632,289 10,405,603
---------- ---------- ------------- -------------
Total increase .................................. 462,794 80,117 22,582,602 10,404,480
NET ASSETS:
Beginning of period ................................ 214,712 134,595 12,821,419 2,416,939
---------- ---------- ------------- -------------
END OF PERIOD ...................................... $677,506 $214,712 $35,404,021 $12,821,419
========== ========== ============= =============
Undistributed Net Investment Income ................ $ 3,673 $ 1,893 $ 304,765 $ 95,171
========== ========== ============= =============
SHARES ISSUED AND REPURCHASED:
Sold ............................................... 40,391 8,842 1,985,940 1,033,016
Reinvestment of dividends and distributions ....... 335 80 70,952 11,043
Repurchased ........................................ (2,856) (1,278) (514,831) (107,999)
---------- ---------- ------------- -------------
Net increase ..................................... 37,870 7,644 1,542,061 936,060
========== ========== ============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
UTILITIES VALUE-ADDED GLOBAL EQUITY STRATEGIST
MARKET
- --------------------------- --------------------------- -------------------------- ---------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 178,226 $ 95,965 $ 158,945 $ 93,999 $ 121,191 $ 22,808 $ 194,436 $ 28,796
(111,170) 1,413 55,495 41,849 (65,955) (4,589) 64,346 9,623
449,814 (204,664) 1,097,897 17,319 520,815 5,145 655,133 (51,073)
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
516,870 (107,286) 1,312,337 153,167 576,051 23,364 913,915 (12,654)
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
(148,664) (72,772) (128,720) (26,537) (51,908) (3,600) (84,091) (11,000)
(7,657) (936) (57,957) (532) -- -- -- --
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
(156,321) (73,708) (186,677) (27,069) (51,908) (3,600) (84,091) (11,000)
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
2,925,355 3,572,305 8,377,903 5,098,522 5,661,746 2,169,351 6,668,052 1,105,067
153,082 72,501 185,438 26,782 48,705 3,091 83,213 10,831
(1,918,748) (938,613) (741,603) (759,299) (968,314) (494,286) (2,098,857) (367,178)
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
1,159,689 2,706,193 7,821,738 4,366,005 4,742,137 1,678,156 4,652,408 748,720
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
1,520,238 2,525,199 8,947,398 4,492,103 5,266,280 1,697,920 5,482,232 725,066
3,859,582 1,334,383 5,132,591 640,488 2,020,025 322,105 1,276,460 551,394
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
$ 5,379,820 $3,859,582 $14,079,989 $5,132,591 $7,286,305 $2,020,025 $ 6,758,692 $1,276,460
============= ============ ============= ============ ============ ============ ============= ============
$ 59,239 $ 29,677 $ 98,210 $ 67,985 $ 91,401 $ 21,656 $ 131,775 $ 21,430
============= ============ ============= ============ ============ ============ ============= ============
279,150 333,775 672,727 480,766 551,389 203,467 671,204 111,898
14,928 6,832 17,678 2,532 4,871 290 8,650 1,082
(186,431) (87,688) (65,288) (72,178) (93,327) (46,206) (211,811) (37,803)
- ------------- ------------ ------------- ------------ ------------ ------------ ------------- ------------
107,647 252,919 625,117 411,120 462,933 157,551 468,043 75,177
============= ============ ============= ============ ============ ============ ============= ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter Retirement Series (the
"Fund") is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company, consisting of eleven separate
Series ("Series"). All of the Series, with the exception of Strategist, are
diversified.
The Fund was organized on May 14, 1992 as a Massachusetts business trust
and each of the Series commenced operations as follows:
<TABLE>
<CAPTION>
COMMENCEMENT OF
OPERATIONS
---------------
<S> <C>
Liquid Asset ............. December 30, 1992
U.S. Government Money
Market ................... January 20, 1993
U.S. Government
Securities ............... January 8, 1993
Intermediate Income
Securities ............... January 12, 1993
</TABLE>
<TABLE>
<CAPTION>
COMMENCEMENT OF
OPERATIONS
---------------
<S> <C>
American Value ........ February 1, 1993
Capital Growth ........ February 2, 1993
Dividend Growth ....... January 7, 1993
Utilities ............. January 8, 1993
Value-Added Market ... February 1, 1993
Global Equity ......... January 8, 1993
Strategist ............ January 7, 1993
</TABLE>
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Liquid Asset and U.S. Government Money
Market: Securities are valued at amortized cost which approximates market
value. All remaining Series: (1) an equity security listed or traded on
the New York, 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; in cases where securities are
traded on more than one exchange, the securities are valued on the
exchange designated as the primary market by the Trustees; (2) all other
portfolio securities for which over-the-counter market quotations are
readily available are valued at the latest available bid price prior to
the time of valuation; (3) when market quotations are not readily
available, portfolio securities are valued at their fair value as
determined in good faith under procedures established by and under the
general supervision of the Trustees; (4) certain of the Fund's portfolio
securities may be valued by an outside pricing service approved by the
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, if available, in determining what
it believes is the fair valuation of the securities valued by such
pricing service; and (5) short-term debt securities having a maturity
date of more than sixty days at time of purchase are valued on a
mark-to-market basis until sixty days prior to maturity and thereafter at
amortized cost based on their value on the 61st day. Short-term debt
securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.
B. Accounting for Investments -- Security transactions are accounted for
on the trade date (date the order to buy or sell is executed). Realized
gains and losses on security transactions are determined by the
identified cost method. Dividend income is recorded on the ex-dividend
date, except for certain dividends on foreign securities which are
recorded as soon as the Fund is
<PAGE>
Dean Witter Retirement Series
Notes to Financial Statements (continued)
- -------------------------------------------------------------------------
informed after the ex-dividend date. Interest income is accrued daily
except where collection is not expected. In determining net investment
income, Liquid Asset and U.S. Government Money Market amortize premiums
and accrete discounts on securities owned; gains and losses realized upon
the sale of such securities are based on their amortized cost. Discounts
on securities purchased for all other Series are accreted over the life
of the respective securities.
C. Foreign Currency Translation -- The books and records of American
Value and Global Equity are translated into U.S. dollars as follows: (1)
the foreign currency market value of investment securities, other assets
and liabilities and forward contracts are translated at the exchange
rates prevailing at the end of the period; and (2) purchases, sales,
income and expenses are translated at the exchange rates prevailing on
the respective dates of such transactions. The resultant exchange gains
and losses are included in the Statement of Operations as realized and
unrealized gain/loss on foreign exchange transactions. Pursuant to U.S.
Federal income tax regulations, certain foreign exchange gains/losses
included in realized and unrealized gain/loss are included in or are a
reduction of ordinary income for federal income tax purposes. American
Value and Global Equity do not isolate that portion of the results of
operations arising as a result of changes in the foreign exchange rates
from the changes in the market prices of the securities.
D. Forward Foreign Currency Contracts --American Value and Global Equity
may enter into forward foreign currency contracts which are valued daily
at the appropriate exchange rates. The resultant unrealized exchange
gains and losses are included in the Statement of Operations as
unrealized foreign currency gain or loss. American Value and Global
Equity record realized gains or losses on delivery of the currency or at
the time the forward contract is extinguished (compensated) by entering
into a closing transaction prior to delivery.
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 reclassification. Dividends and distributions which exceed net
investment income and net realized capital gains for financial reporting
purposes but not for tax purposes are reported as dividends in excess of
net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized
capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
G. Expenses -- Direct expenses are charged to the respective Series and
general Fund expenses are allocated on the basis of relative net assets.
<PAGE>
Dean Witter Retirement Series
Notes to Financial Statements (continued)
- -------------------------------------------------------------------------
H. Organizational Expenses -- Dean Witter InterCapital Inc. (the
"Investment Manager") paid the organizational expenses of the Fund in the
amount of $150,000 ($13,636 allocated to each of the Series).
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement, the Fund pays its Investment Manager a management fee, accrued
daily and payable monthly, by applying the following annual rates to each
Series' net assets determined at the close of each business day: Liquid
Asset, U.S. Government Money Market and Value-Added Market-0.50%; U.S.
Government Securities and Intermediate Income Securities-0.65%; Dividend
Growth and Utilities-0.75%; American Value, Capital Growth and
Strategist-0.85%; and Global Equity-1.0%.
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 the organizational expenses) for each Series
and waive the compensation provided for in the Agreement until December 31,
1995.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- Purchases and
sales/maturities of portfolio securities, excluding short-term investments
(except for Liquid Asset and U.S. Government Money Market), for the year
ended July 31, 1995 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
----------------------------------- ----------------------------------
PURCHASES SALES / PREPAYMENTS PURCHASES SALES / MATURITIES
------------ ------------------- ------------- -----------------
<S> <C> <C> <C> <C>
Liquid Asset ................... -- -- $211,514,657 $177,951,996
U.S. Government Money Market .. $113,045,766 $102,983,373 -- --
U.S. Government Securities .... 1,971,468 341,215 -- --
Intermediate Income Securities 252,268 40,552 454,165 176,379
American Value ................. 2,092,413 1,451,076 37,858,212 26,255,081
Capital Growth ................. 13,258 -- 442,141 70,667
Dividend Growth ................ -- -- 24,422,389 6,704,152
Utilities ...................... 25,000 -- 1,844,870 903,584
Value-Added Market ............. 32,601 -- 7,836,795 429,967
Global Equity .................. -- -- 7,834,334 1,855,753
Strategist ..................... 2,347,621 1,098,098 6,133,115 2,700,129
</TABLE>
Included in the aforementioned purchases of portfolio securities of
Value-Added Market are common stock purchases of Dean Witter, Discover & Co.,
an affiliate of the Investment Manager, of $12,320.
For the year ended July 31, 1995, the following respective Portfolios
incurred brokerage commissions with Dean Witter Reynolds Inc. ("DWR"), an
affiliate of the Investment Manager, for portfolio transactions executed on
behalf of such Series.
<PAGE>
Dean Witter Retirement Series
Notes to Financial Statements (continued)
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND GLOBAL
VALUE GROWTH GROWTH UTILITIES EQUITY STRATEGIST
--------- --------- --------- ----------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Commissions .. $18,882 $519 $28,711 $3,970 $3,713 $5,710
========== ========= ========== =========== ======== ============
</TABLE>
Dividend Growth's payable for investments purchased for unsettled trades
with DWR at July 31, 1995 was $220,868. For the same period, included in
American Value's receivable for investments sold for unsettled trades with
DWR was $270,173.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At July 31, 1995, the following Series had approximate
transfer agent fees and expenses payable:
<TABLE>
<CAPTION>
INTERMEDIATE
LIQUID U.S. GOVERNMENT U.S. GOVERNMENT INCOME AMERICAN
ASSET MONEY MARKET SECURITIES SECURITIES VALUE
- --------- --------------- --------------- -------------- ----------
<S> <C> <C> <C> <C>
$1,300 $400 $6,500 $300 $4,000
========= =============== =============== ============== ==========
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND VALUE-ADDED GLOBAL
GROWTH UTILITIES MARKET EQUITY STRATEGIST
- ---------- ------------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
$5,000 $1,800 $900 $3,000 $2,000
========== ============= ============= ========== ============
</TABLE>
4. FEDERAL INCOME TAX STATUS -- During the year ended at July 31, 1995,
Capital Growth utilized approximately $400 of its net capital loss carryover.
At July 31, 1995, the following Series had approximate net capital loss
carryovers which may be used to offset future capital gains to the extent
provided by regulations:
<TABLE>
<CAPTION>
AVAILABLE THROUGH
JULY 31,
-----------------
2002 2003
------ ---------
<S> <C> <C>
Capital Growth $900 $ --
Utilities ..... -- 62,800
Global Equity -- 3,500
</TABLE>
Capital losses incurred after October 31 ("post-October" losses) within
the taxable year are deemed to arise on the first business day of the Series'
next taxable year. The following Series incurred and will elect to defer net
capital losses during such period in fiscal 1995:
<TABLE>
<CAPTION>
TOTAL
--------
<S> <C>
U.S. Government Securities .... $ 1,820
Intermediate Income Securities 1,767
Dividend Growth ................ 80,314
Utilities ...................... 51,163
Global Equity .................. 67,520
Strategist ..................... 14,734
</TABLE>
<PAGE>
Dean Witter Retirement Series
Notes to Financial Statements (continued)
- -------------------------------------------------------------------------
At July 31, 1995, the primary reason(s) for significant temporary book/tax
differences were as follows:
<TABLE>
<CAPTION>
POST-OCTOBER LOSS DEFERRALS FROM
CAPITAL LOSSES WASH SALES
-------------- ---------------------
<S> <C> <C>
U.S. Government Securities ........ o
Intermediate Income Securities ... o
American Value .................... o
Capital Growth .................... o
Dividend Growth ................... o o
Utilities ......................... o o
Value-Added Market ................ o
Global Equity ..................... o
o
Strategist ........................ o
</TABLE>
5. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS --
American Value and Global Equity may enter into forward currency contracts
("forward contracts") to facilitate settlement of foreign currency
denominated portfolio transactions or to manage foreign currency exposure
associated with foreign currency denominated securities.
At July 31, 1995, American Value and Global Equity had no outstanding
forward contracts other than those used to facilitate settlement of foreign
currency denominated portfolio transactions.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. American Value and
Global Equity bear the risk of an unfavorable change in foreign exchange
rates underlying the forward contracts. Risks may also arise upon entering
into these contracts from the potential inability of the counterparties to
meet the terms of their contracts.
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
NET ASSET
YEAR VALUE NET NET REALIZED TOTAL FROM TOTAL DIVIDENDS
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO DISTRIBUTIONS TO AND
JULY 31, OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- -------------- ----------- ------------ -------------- ------------ -------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
LIQUID ASSET
$ $
1993 (1) $ 1.00 $ 0.02 -- $ 0.02 $(0.02) -- $(0.02)
1994 1.00 0.03 -- 0.03 (0.03) -- (0.03)
1995 1.00 0.06 -- 0.06 (0.06) -- (0.06)
U.S. GOVERNMENT MONEY MARKET
--
1993 (2) 1.00 + -- -- -- -- --
1994 1.00 0.03 -- 0.03 (0.03) -- (0.03)
1995 1.00 0.06 -- 0.06 (0.06) -- (0.06)
U.S. GOVERNMENT SECURITIES
1993 (3) 10.00 0.19 0.07 0.26 (0.20) -- (0.20)
1994 10.06 0.44 (0.50) (0.06) (0.44) -- (0.44)
1995 9.56 0.56 0.15 0.71 (0.56) -- (0.56)
INTERMEDIATE INCOME SECURITIES
1993 (4) 10.00 0.19 (0.02) 0.17 (0.19) -- (0.19)
1994 9.98 0.60 (0.57) 0.03 (0.60) -- (0.60)
1995 9.41 0.61 0.22 0.83 (0.61) -- (0.61)
AMERICAN VALUE
1993 (6) 10.00 0.06 (0.01) 0.05 -- -- --
1994 10.05 0.03 (0.09) (0.06) (0.02) (0.04) (0.06)
1995 9.93 0.14 3.15 3.29 (0.12) -- (0.12)
CAPITAL GROWTH
1993 (7) 10.00 (0.02) (1.10) (1.12) -- -- --
1994 8.88 0.13 0.45 0.58 (0.04) -- (0.04)
1995 9.42 0.10 1.77 1.87 (0.12) -- (0.12)
DIVIDEND GROWTH
1993 (5) 10.00 0.13 0.58 0.71 (0.10) -- (0.10)
1994 10.61 0.28 0.37 0.65 (0.23) (0.01) (0.24)
1995 11.02 0.34 2.13 2.47 (0.31) (0.10) (0.41)
UTILITIES
1993 (3) 10.00 0.19 1.30 1.49 (0.14) -- (0.14)
1994 11.35 0.37 (0.95) (0.58) (0.34) (0.01) (0.35)
1995 10.42 0.42 0.80 1.22 (0.37) (0.02) (0.39)
VALUE-ADDED MARKET
1993 (6) 10.00 0.05 0.02 0.07 (0.04) -- (0.04)
1994 10.03 0.24 0.65 0.89 (0.11) -- (0.11)
1995 10.81 0.21 2.16 2.37 (0.26) (0.12) (0.38)
GLOBAL EQUITY
1993 (3) 10.00 0.07 (0.03) 0.04 -- -- --
1994 10.04 0.08 0.58 0.66 (0.05) -- (0.05)
1995 10.65 0.14 0.49 0.63 (0.11) -- (0.11)
STRATEGIST
1993 (5) 10.00 0.06 (0.23) (0.17) -- -- --
1994 9.83 0.23 (0.20) 0.03 (0.13) -- (0.13)
1995 9.73 0.24 1.49 1.73 (0.18) -- (0.18)
</TABLE>
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.
(a) Not annualized.
(b) Annualized.
(c) Restated.
+ Includes dividends from net investment income of $0.004 per share.
* After application of the Fund's state expense limitation.
See Notes to Financial Statements
<PAGE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERGAGE RATIOS TO AVERAGE
NET ASSETS (BEFORE NET ASSETS (AFTER
EXPENSES WERE ASSUMED)* EXPENSES WERE ASSUMED)
NET ASSET NET NET
VALUE TOTAL NET ASSETS INVESTMENT INVESTMENT PORTFOLIO
END INVESTMENT END OF INCOME INCOME TURNOVER
OF PERIOD RETURN PERIOD (000'S) EXPENSES (LOSS) EXPENSES (LOSS) RATE
- ---------- ------------ --------------- ---------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 1.77%(A) $1,081 1.30%(B) 0.53%(B) 0.14%(B) 3.02%(B) N/A
--
1.00 3.48 1,524 2.50 0.99 3.49 N/A
--
1.00 5.90 35,631 1.16 4.96 6.12 N/A
1.00 0.42(a) 125 2.50(b) (0.95)(b) 2.13(b) 0.83(b) N/A
--
1.00 3.52 555 2.50 0.82 3.32 N/A
--
1.00 5.86 10,695 2.50 3.62 6.12 N/A
10.06 2.60(a) 1,756 1.81(b) 0.33(b) 0.18(b) 3.66(b) --
9.56 (0.69) 2,954 2.50 1.96 -- 4.46(c) 29%
9.71 7.72 4,209 2.36 3.49 -- 5.85 14
9.98 1.67(a) 182 2.50(b) 1.00(b) 1.62(b) 3.50(b) --
9.41 0.26 460 2.50 3.64 -- 6.14 40
9.63 9.22 994 2.50 4.08 -- 6.58 37
10.05 0.50(a) 308 2.50(b) (0.66)(b) 0.74(b) 1.10(b) 121(a)
9.93 (0.59) 6,841 2.50 (0.81) -- 1.69 136
13.10 33.48 22,581 1.42 0.39 -- 1.81 234
8.88 (11.20)(a) 135 2.50(b) (1.01)(b) 1.97(b) (0.47)(b) 2(a)
9.42 6.57 215 2.50 (0.98) -- 1.52 11
11.17 20.08 678 2.50 (1.07) -- 1.43 20
10.61 7.11(a) 2,417 2.50(b) 0.61(b) 0.16(b) 2.89(b) 7(a)
11.02 6.13 12,821 1.51 1.78 -- 3.29 13
13.08 23.07 35,404 1.14 2.34 -- 3.48 29
11.35 14.98(a) 1,334 2.50(b) 1.59(b) 0.30(b) 3.79(b) 8(a)
10.42 (5.23) 3,860 2.50 1.62 -- 4.14 5
11.25 12.16 5,380 1.91 2.41 -- 4.32 24
10.03 0.71(a) 640 2.50(b) (0.16)(b) 0.92(b) 1.42(b) 1(a)
10.81 8.89 5,133 1.82 0.70 -- 2.53 8
12.80 22.65 14,080 1.22 1.33 -- 2.55 7
10.04 0.40(a) 322 2.50(b) (0.90)(b) 1.00(b) 1.77(b) --
10.65 6.54 2,020 2.50 (0.09) -- 2.41 8
11.17 6.08 7,286 2.25 0.48 -- 2.73 55
9.83 (1.70)(a) 551 2.50(b) (0.19)(b) 0.64(b) 1.67(b) 26(a)
9.73 0.12 1,276 2.50 0.70 -- 3.20 57
11.28 18.21 6,759 2.14 1.97 -- 4.11 115
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
REPORT OF INDEPENDENT ACCOUNTANTS
- -----------------------------------------------------------------------------
To the Shareholders and Trustees of Dean Witter Retirement Series
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Liquid Asset
Series, the U.S. Government Money Market Series, the U.S. Government
Securities Series, the Intermediate Income Securities Series, the American
Value Series, the Capital Growth Series, the Dividend Growth Series, the
Utilities Series, the Value-Added Market Series, the Global Equity Series,
and the Strategist Series (constituting Dean Witter Retirement Series,
hereafter referred to as the "Fund") at July 31, 1995, the results of each of
their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities owned at July 31, 1995
by correspondence with the custodian and brokers, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
September 13, 1995
- -------------------------------------------------------------------------------
1995 FEDERAL INCOME TAX NOTICE (unaudited)
During the year ended July 31, 1995, the Dividend Growth and Value-Added
Market paid to shareholders long-term capital gains per share of $0.05 and
$0.01, respectively.
Additionally, the following percentages of the income paid qualified for
the dividends received deduction available to corporations:
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED GLOBAL
VALUE GROWTH GROWTH UTILITIES MARKET EQUITY STRATEGIST
- ---------- --------- ---------- ----------- ------------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
13.9% 96.6% 72.7% 68.1% 78.3% 5.7% 12.4%
========== ========= ========== =========== ============= ======== ============
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and
General Counsel
Thomas F. Caloia
Treasurer
CUSTODIAN
The Bank of New York
90 Washington Street
New York, New York 10286
TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENTS MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Fund.
This report is not authorized for distribution to prospective investors in
the Fund unless preceded or accompanied by an effective prospectus.
ANNUAL REPORT
JULY 31, 1995
DEAN WITTER
RETIREMENT SERIES
