<PAGE>
DEAN WITTER RETIREMENT SERIES Two World Trade Center, New York, New York 10048
LETTER TO THE SHAREHOLDERS July 31, 1996
DEAR SHAREHOLDER:
Despite some uncertainties about the strength of the economy and the
direction of interest rates, the U.S. equity markets advanced throughout the
twelve-month period ended July 31, 1996. The Standard & Poor's 500 Composite
Stock Price Index produced a total return of 16.51 percent during the period,
while the Dow Jones Industrial Average returned 20.22 percent.
During the first six months of the period, robust corporate earnings, benign
inflation and a steadily advancing bond market combined to propel stocks
higher. Despite a brief 100-point detour in mid-December (brought about by
anxiety over budget wrangling in Washington, an economy perceived to be
weakening and a belief that the Federal Reserve Board would not cut interest
rates, which it subsequently did), equities continued to advance through the
new year.
By mid-February, however, the U.S. economy was exhibiting signs of renewed
vigor. Stronger-than-anticipated employment reports, combined with robust
housing, automobile and retail sales, ignited inflationary fears and caused
intermediate-and long-term interest rates to edge higher. Higher food and
energy costs did little to allay the financial markets' concerns. As a result
of the economy's newfound strength, the yield on the 30-year U.S. Treasury
bond increased 103 basis points (1.03 percentage points) since the end of
1995 to 6.98 percent as of July 31, 1996, while the yield on the 2-year U.S.
Treasury note increased 1.07 basis points to 6.22 percent.
Notwithstanding the recent backup in U.S. interest rates and ensuing market
volatility, the primarily bullish trend of equity prices is expected to
remain intact until the Federal Reserve Board moves toward a serious
tightening of monetary policy. While such a move does not appear to be on the
immediate horizon, this eventuality may occur in 1997 or 1998. The wild card
continues to be the economy.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
MIXED PERFORMANCE IN GLOBAL MARKETS
The economic environment in Europe over the twelve months ended July 31, 1996
was mixed and conditions varied from country to country. The U.K. economy
continued in a relatively robust pattern with a strengthening consumer sector
offsetting the weak export and manufacturing sectors. The deutschemark-bloc
countries saw a marked slowdown in late 1995, which has continued well into
1996. A number of factors delayed a pick-up in activity: the general strikes
in France, which adversely affected output and consumer confidence; the poor
winter weather in Germany, which severely disrupted the construction
industry; and widespread macroeconomic difficulties, such as the global
inventory correction and the high cost-base nature of the German economy,
which a slightly weaker deutschemark could not offset.
As always, political developments were dominant in Europe. In Spain and Italy
there were key elections in the spring resulting in new governmental
administrations. The economic impact of these changes will not be evident for
a while, but neither gave rise to any significant currency or bond market
turbulence.
The outlook in Europe at present is for a steady economic pick-up in the
second half of 1996, accelerating in 1997. Continued budgetary vigor is
expected in all countries as governments struggle to reduce deficits and
prepare the economies for possible monetary union in 1999. While this will
clearly dampen down the expected recovery, interest rates are low and should
help compensate (although the interest rate cycle will turn upwards, possibly
before year-end). Inflation is set to remain very low.
During the period under review the markets in Europe have performed well. The
political changes in Spain and Italy noted above excited equity investors. In
France, the stock market rallied strongly from a very oversold position in
late 1995 with blue chip growth stocks leading the performance. In Germany,
growth stocks were strong as well and in Switzerland the sensational merger
of Ciba-Geigy AG and Sandoz AG boosted the pharmaceutical sector's
performance. The UK market lagged the European averages.
Expectations of strong earnings rises in 1996 had to be scaled back as the
extent of the economic slow-down became evident but we do still anticipate
that 1996 will be the fourth year of rising earnings in Europe. The outlook
for 1997 is positive and will crucially depend on the scale and breadth of
the economic recovery.
The markets of the Pacific Basin generally started 1996 as they ended 1995,
with strong positive returns in January and early February, in the run up to
the Chinese New Year. The principal influences on this performance were
attractive market valuations and earnings growth forecasts, renewed flows of
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
international liquidity to the region and lower U.S. interest rates. Hong
Kong, which performed well in 1995, continued to lead the market advance
given its direct tie in to U.S. monetary policy through the pegged exchange
rate. Indonesia also was particularly strong. Amongst the weaker markets in
the region in the first quarter were Taiwan, owing to steadily increasing
tension with China ahead of the first-ever Taiwanese presidential election in
late March, and Korea, where political tension and concerns about an economic
slowdown remained at high levels. Toward the end of the quarter the
unexpected turn in U.S. employment data upset consensus opinion that the
economy was weak and created confusion regarding the future direction of
interest rates. This, together with further escalation in Sino-Taiwanese
tension, led to a sharp pullback in regional equity markets.
The Japanese market rose by nearly eight percent in yen terms over the last
six months of the period under review, encouraged by better corporate and
economic numbers and loose monetary policy. However, much of the gain was
wiped out for U.S.-dollar based investors as the yen slipped from 103 to the
U.S. dollar to 110.
The economic performance of the region remains extremely robust, with gross
domestic product growth expected to remain close to 7 percent on average,
fueled by strong domestic consumption, infrastructure spending and trade,
especially on an intraregional basis. In Southeast Asia (Malaysia, Thailand
and Indonesia), growth rates are expected to decelerate slightly and the
macroeconomic imbalances which have overshadowed growth should begin to
diminish, allowing domestic interest rates to ease later in the year.
Chinese economic growth has also slowed to a more sustainable,
non-inflationary level of about 8 percent, down from over 13 percent two
years ago. Inflationary pressures have receded and monetary authorities are
now beginning to ease policy. The subsequent resurgence of growth in China
should underpin the region in general and Hong Kong in particular.
U.S. GOVERNMENT MONEY MARKET SERIES/LIQUID ASSET SERIES
As of July 31, 1996, the U.S. Government Money Market Series had net assets
of approximately $7 million with an average life of 13 days. This portfolio's
net yield for the twelve month fiscal year ended July 31, 1996 was 5.21
percent and its annualized yield for July was 4.32 percent.
As of July 31, 1996, the Liquid Asset Series had net assets of approximately
$43 million with an average life of 25 days. This portfolio's net yield for
the twelve month fiscal year ended July 31, 1996 was 5.44 percent and its
annualized yield for July was 4.52 percent.
On July 31, 1996, approximately 98 percent of the U.S. Government Money
Market Series portfolio consisted of Federal agency obligations with the
remaining 2 percent invested in U.S. Treasury bills. In the
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
Liquid Asset Series, 84 percent of the portfolio was invested in top quality
commercial paper, 16 percent was invested in short-term bank notes,
certificates of deposit and bankers' acceptances of major, financially strong
commercial banks and the remaining 2 percent in Federal agency obligations.
At the end of this fiscal period, 100 percent of both Series' assets were due
to mature in less than four months. Therefore, both portfolios are well
positioned for stability of value with a high degree of liquidity. We
continue to operate the portfolios in a straight-forward, conservative style
without "structured notes" or derivatives which could fluctuate excessively
when interest rates change.
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, 1996, the Series posted a
total return of 4.49 percent, including income distributions totaling $0.55
per share. On July 31, 1996, the Series' net assets totaled $8.7 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, 1996, 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
GROWTH OF $10,000
DATE TOTAL LEHMAN BROTHERS
GENERAL US GOVT INDEX
==============================================================================
January 8, 1993 $10,000 $10,000
- ------------------------------------------------------------------------------
July 31, 1993 $10,260 $10,595
==============================================================================
July 31, 1994 $10,188 $10,581
- ------------------------------------------------------------------------------
July 31, 1995 $10,975 $11,600
- ------------------------------------------------------------------------------
July 31, 1996 $11,467 $12,198
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
4.49%(1) 3.92%(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 measure
of all U.S. Government and U.S. Treasury Securities. The Index does not
include any expenses, fees or charges. The Index is unmanaged and should
not be considered an investment.
The portfolio continues to be well diversified. As of July 31, 1996, 53
percent of the Series' portfolio was comprised of Government National
Mortgage Association mortgage-backed securities (GNMAs), 32 percent U.S.
Treasury securities and 15 percent zero-coupon U.S. Treasury securities. At
the end of the fiscal year, the Series' average maturity reflects a neutral
position. Accordingly, as attractive investment opportunities become
available, the average maturity may be gradually extended. On July 31, 1996,
the average duration was approximately 3.9 years.
The portfolio manager believes that GNMAs continue to offer significant
long-term value and, in the current investment environment, an incremental
yield incentive over U.S. Treasuries of similar maturities and the potential
for greater total returns.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
INTERMEDIATE INCOME SECURITIES SERIES
Intermediate Income Securities Series invests primarily in intermediate-term,
investment grade fixed-income securities. For the fiscal year, the Series
produced a total return of 3.95 percent. On July 31, 1996, the Series' net
assets were $4.2 million. 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, 1996, 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
DATE TOTAL LEHMAN INTERMEDIATE
INVESTMENT GRADE DEBT INDEX
==============================================================================
January 12, 1993 $10,000 $10,000
- ------------------------------------------------------------------------------
July 31, 1993 $10,167 $10,720
==============================================================================
July 31, 1994 $10,194 $10,725
- ------------------------------------------------------------------------------
July 31, 1995 $11,134 $12,010
- ------------------------------------------------------------------------------
July 31, 1996 $11,574 $12,680
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
3.95% (1) 4.20% (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 unmanged
index of 5 to 10 year investment-grade corporate debt securities. The Index
does not include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.
On July 31, 1996, U.S. Treasury securities comprised approximately 69 percent
of the Series' holdings, while corporates and agencies accounted for 28
percent and 3 percent, respectively. The Series' return during the fiscal
year was reflective of the rise in interest rates in 1996. The Series
underperformed its benchmark index due to its somewhat longer average
maturity and duration during the last half of the period.
As the Series grew in asset size during the fourth quarter of 1995, cash
reserves rose rapidly and were invested primarily in U.S. Treasuries. Despite
the Series' goal of investing funds as rapidly as possible, a portion of this
cash inflow did not participate in the rally of the period. As 1996 began,
cash reserves still accounted for nearly 5 percent of the portfolio's value.
At this time, the Series was considerably shorter in average maturity and
duration than other intermediate bond funds against which it was measured by
Lipper Analytical Services, Inc., while still longer than its benchmark. Due
to these significant disparities between the Series and its competitors, as
well as its growth in asset size, the process of extending the portfolio was
begun in January. To accomplish this, a portion of the cash, plus proceeds
from additional subscriptions, were committed to five-to ten-year maturities.
Due to the Series' growth, a greater portion of new investments was directed
to corporates. On July 31, 1996, the Series' average maturity and duration
were 5.28 years and 3.95 years, respectively. The average quality rating of
the portfolio was AA2.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
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, 1996, the
Series posted a total return of 9.83 percent compared to a return of 16.51
percent for the S&P 500 Index and a return of 9.72 percent for the average
growth fund, according to Lipper Analytical Services, Inc. On July 31, 1996,
the Series' net assets exceeded $40.3 million. 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, 1996,
versus the performance of a similar hypothetical investment in the issues
that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
American Value Series
GROWTH OF $10,000
DATE TOTAL S&P 500
==============================================================================
February 1, 1993 $10,000 $10,000
- ------------------------------------------------------------------------------
July 31, 1993 $10,050 $10,271
==============================================================================
July 31, 1994 $ 9,990 $10,801
- ------------------------------------------------------------------------------
July 31, 1995 $13,335 $13,613
- ------------------------------------------------------------------------------
July 31, 1996 $14,645 $15,862
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
9.83%(1) 11.54%(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 Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
As the first quarter of 1996 progressed, the economy gathered surprising
momentum as employment, industrial production and consumer spending began to
accelerate. As evidence of an economic rebound mounted, the Series' portfolio
which had been balanced in a "barbell" fashion between steady growth and
economic sensitive industries, was tilted toward the cyclical side of the
barbell to take advantage of the expected economic growth that lay ahead. An
exposure to steady growth industries was maintained as the portfolio manager
believed that corporate earnings would decelerate as the year progressed.
Steady growth groups represented in the portfolio included healthcare
(pharmaceuticals, healthcare products & services and medical supplies),
consumer staples (beverages, cosmetics and household products) and
consumer/business services (funeral homes, education services and data
processing). These industries historically appreciate in the face of sluggish
corporate profit growth because of their relative earnings advantage.
Financial groups such as banks were also retained as it is expected that
their rate of earnings growth will continue to outpace that of overall
profits.
On the economically sensitive side of the portfolio, investment holdings
included technology (networking, computer software and communications) and
consumer cyclicals (autos, retail, apparel and lodging). The
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
portfolio manager focused on this area in an effort to capitalize on signs of
continued capital spending in select high-growth technology areas. Consumer
cyclical industries were purchased in the wake of rising employment, and a
resulting rebound in consumer cyclicals. Purchases also included stocks in
the agriculture-related, aerospace and energy industries. These industries
were purchased because they represent long-term themes relating to increased
demand emanating from the faster-growing developing countries in Asia and
Latin America. At the end of the period, significant holdings included
Tellabs, Inc., United Technologies Corp., Service Corp. International, Thermo
Electron Corp., Monsanto Co., Citicorp, Mirage Resorts, Inc., Reuters
Holdings PLC, Safeway, Inc., American Home Products Corp. and Diamond
Offshore Drilling, Inc.
After a strong first half, the economy is expected to slow for the remainder
of the calendar year to allow consumer and capital spending pent-up demand to
rebuild. Additionally, slowing unit demand and higher wages could pressure
corporate earnings profitability and result in a diminution in capital
spending. In such a scenario, the Series will likely tilt to the steady
growth side of its barbell portfolio. In the meantime, the portfolio manager
believes that the Fund's "barbell" portfolio appropriately positions the
portfolio to take advantage of those steady growth industries that are still
outpacing overall corporate earnings growth and those industries that are
currently benefiting from an economic lift.
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, 1996, the Series produced a total return of 14.58 percent,
compared to a return of 16.51 percent for the S&P 500 Index. 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, 1996,
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
DATE TOTAL S&P 500
==============================================================================
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 $13,612
- ------------------------------------------------------------------------------
July 31, 1996 $13,020 $15,860
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
14.58%(1) 7.85%(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 Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
On July 31, 1996, the Series, which was fully invested, had net assets
totaling approximately $2.0 million. The Series
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
owned 49 equity issues. Recent additions to the portfolio included HFS, Inc.,
La Quinta Inns, Inc., Staples, Inc. and Cisco Systems, Inc. Positions that
were sold included Forest Laboratories, Inc., UST, Inc. and U.S. Healthcare,
Inc.
During the last quarter of the fiscal year, the screens employed by the
Series were modified to provide a larger universe from which to pick stocks.
The current criteria are that companies must have: 1) rising revenues and
earnings in five of the last eight years; 2) rising revenues and earnings in
the last three years consecutively; and 3) future short-and long-term
earnings growth potential of at least 12 percent. Going forward, the Series
will place a greater emphasis on company fundamentals in addition to the
quantitative analysis. The Series will continue to hold only companies with a
history of solid revenue growth but also with strong prospects for future
growth and attractive valuations.
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, 1996, the Series produced
a total return of 16.09 percent, compared to a return of 16.51 percent
for the S&P 500 Index. The Series' slight underperformance of the
broad-market index was in large part due to the exceptional strength, for
much of the period, in small-capitalization stocks, in particular the
technology 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, 1996,
versus the performance of a similar hypothetical investment in the issues
that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
Dividend Growth Series
GROWTH OF $10,000
DATE TOTAL S&P 500
==============================================================================
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 $14,018
- ------------------------------------------------------------------------------
July 31, 1996 $16,242 $16,333
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
16.09%(1) 14.59%(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 Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
The Series utilizes a proprietary screening process to assist the portfolio
manager in building the portfolio of common stocks. As of July 31, 1996, the
Series' net assets totaled $69.8 million and owned 39 equity issues, spread
among 30 different industry groups. During the fiscal year, the Series added
three new positions including American Stores Co., Ashland, Inc. and Timken
Co.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
Additionally, the Series' holdings in Kmart Corp., 360 Communications Co. (a
spin-off from Sprint Corp.) and Payless Shoesource, Inc. (a spin-off from May
Department Stores Co.) were sold.
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. Utilities Series produced a total return of
8.76 percent for the fiscal year ended July 31, 1996. The Series' net assets
totaled $7.6 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, 1996, 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
DATE TOTAL S&P 500
==============================================================================
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 $14,073
- ------------------------------------------------------------------------------
July 31, 1996 $13,291 $16,397
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
8.76%(1) 8.32%(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 Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
During the fiscal year, the utilities industries continued to be embedded
with the general uncertainties surrounding the transformation of the various
industry sectors from a monopoly to a competitive environment.
On July 31, 1996, 84 percent of the Series' net assets were invested in
equities, with 43 percent in telecommunications, 37 percent in electric
utilities and 20 percent in natural gas. Fixed-income securities and cash
equivalents accounted for one percent and 14 percent of net assets,
respectively. The Series' portfolio is further diversified through foreign
equity securities which focused on the telecommunications sector and
accounted for 10 percent of net assets.
The Series is well positioned and structured to participate in the resulting
opportunities that will arise as restructuring, competition and broad-based
deregulation progress throughout all sectors of the utilities industry.
VALUE-ADDED SERIES
Value-Added Series invests, on an equally-weighted basis, in a diversified
portfolio of stocks issued by companies that are represented in the S&P 500
Index. For the fiscal year ended July 31, 1996, the Series produced a total
return of 11.19 percent versus 16.51 percent for the S&P 500 Index. On July
31, 1996, the
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
Series' net assets totaled about $20.4 million. The accompanying chart
illustrates the growth of a $10,000 investment in the Series from inception
(February 1, 1993) through July 31, 1996, versus 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
DATE TOTAL S&P 500
==============================================================================
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 $13,613
- ------------------------------------------------------------------------------
July 31, 1996 $14,955 $15,862
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
11.19%(1) 12.21%(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 Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
The Series is index-oriented, investing in the 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 outperform
larger-capitalization companies.
For most of the fiscal year, the S&P 500's performance was driven by
large-capitalization multinational corporations, as well as stocks in the
technology sector. These two areas are more heavily weighted in the Index
than in the Series. As a result, the Series underperformed the Index for the
full fiscal year. However, the Series did outperform the Index during the
first quarter of 1996 when the Series' larger-than-market weight in the
outperforming financial, transportation and cyclical sectors and its
lower-than-market weight in the underperforming consumer and utilities
sectors, contributed to its outperformance. The Series continued to
outperform the market through mid-May, before losing ground over the last ten
weeks of the fiscal year as a result of a sharp relative decline in the stock
of cyclical and financial companies, two areas in which the Series has
a greater-than-market weight.
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, 1996, the Series produced a total return of 7.26
percent. On July 31, 1996, the Series' net assets were $11.7 million. The
accompanying
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
chart illustrates the performance of a $10,000 investment in the Series from
inception (January 8, 1993) through the fiscal year-ended July 31, 1996,
versus the performance of a similar hypothetical investment in the issues
that comprise the S&P 500 Index and the Morgan Stanley Capital International
World Index.
DEAN WITTER RETIREMENT SERIES
Global Equity Series
GROWTH OF $10,000
DATE TOTAL S&P 500 (2) MSCI (3)
==============================================================================
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 $14,073 $14,346
- ------------------------------------------------------------------------------
July 31, 1996 $12,171 $16,397 $15,364
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
7.26%(1) 5.68%(1)
============================
=====================================================
| ---- Fund ---- S&P 500(2) ---- MSCI (3) |
=====================================================
Past performance is not predictive of future returns.
- ----------------------------------------
(1) Total return figures shown assume reinvestment of all distributions.
(2) The Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
(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. The
index is unmanaged and should not be considered an investment.
The global backdrop of stable inflation and recovering global growth in
Japan, Europe and Latin America allowed for favorable equity market
performance during the period under review. Among the major markets, the U.S.
remained the best performing, gaining 16.51 percent, as measured by the S&P
500 Index. However, stronger than anticipated gains in economic growth and
employment figures in the U.S. have added recent volatility to the markets as
investors begin to discount the possibility of rising interest rates.
In Japan, the equity market began discounting a sustainable economic recovery
after five years of false starts and disappointments. Low interest rates, a
weakening yen and improving macroeconomic data all underpinned an 18.44
percent rally in local currency terms. However, the U.S. dollar strengthened
17.20 percent against the yen, lowering returns for dollar-based investors.
The Series continues to see value in global stock markets, as economic growth
endures in the U.S., renews in Europe and in Japan and companies focus on
restructuring operations and improving efficiency. The Series continues to be
broadly diversified in over 30 countries across the globe with wide industry
representation. At the end of the reporting period, the Series' asset
allocation emphasized Japan (34.2 percent), the United States (22.5 percent),
the United Kingdom (5.9 percent) and Hong Kong (4.0 percent).
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
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
31, 1996, the Series provided a total return of 16.97 percent versus 16.51
percent for the S&P 500 Index and 5.31 percent for the Lehman Brothers
Government/Corporate Bond Index. As of July 31, 1996, the Series' total net
assets exceeded $17.4 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, 1996, versus the performance of a
similar hypothetical investment in the issues that comprise the S&P 500 Index.
DEAN WITTER RETIREMENT SERIES
Strategist Series
GROWTH OF $10,000
DATE TOTAL S&P 500 LEHMAN
==============================================================================
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 $14,018 $11,677
- ------------------------------------------------------------------------------
July 31, 1996 $13,608 $16,333 $12,297
==============================================================================
AVERAGE ANNUAL TOTAL RETURN (FUND)
ONE YEAR LIFE OF FUND
============================
16.97%(1) 9.03%(1)
============================
==================================================================
| ----- Fund ----- S&P 500(2) ----- LEHMAN (3) |
==================================================================
Past performance is not predictive of future returns.
- ----------------------------------------
(1) Total return figures shown assume reinvestment of all distributions.
(2) The Standard & Poor's 500 Composite Stock Price Index (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 Index is unmanaged and should not be considered an
investment.
(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 index is unmanaged and should not be
considered an investment.
As a flexible fund, the Strategist Series combines stocks, bonds and cash in
an effort to maximize total return and minimize volatility. During the past
year, the Series' asset allocation underwent two major shifts. The first, in
October 1995, was a significant move into equities (from 50 percent of assets
to 75 percent) from bonds (40 percent of assets to 20 percent). This move was
based on a combination of factors, including a relatively low 6.2 percent
30-year U.S. Treasury bond yield and positive expectations for inflation,
earnings growth and Federal Reserve monetary policy.
The second shift was made in late July 1996 and reversed the equity
overweight initiated nine months earlier. This change was most closely linked
to two recent developments: a deterioration in earnings growth forecasts for
1997 and 1998 (a negative for the equity market) and the sell-off in the bond
market, which moved the 30-year U.S. Treasury bond yield to 7.2 percent. At
the end of the fiscal year, the Series' asset allocation was 46 percent in
equities, 31 percent in bonds and 23 percent in cash.
The Series' equity holdings were concentrated in consumer staples (i.e.,
food, beverage and healthcare), technology, financials and consumer
cyclicals. Key holdings include Campbell Soup Co., PepsiCo Inc., American
Home Products Corp., Diebold, Inc., Gateway 2000, Inc., Golden West Financial
Corp., Pier 1 Imports, Inc. and Nike, Inc.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS July 31, 1996, continued
The bond portfolio is well diversified among many issuers and maturities. The
portfolio's average maturity is 9 1/2 years, the average yield is 7 percent
and the average duration is 5 1/2 years. Over two-thirds of the portfolio is
held in U.S. government bonds with the balance in corporate issues. All
issues are investment grade or higher.
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, 1996
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF
THOUSANDS PURCHASE MATURITY DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (83.9%)
Automotive -Finance (9.7%)
$1,675 Ford Motor Credit Co. .......................................... 5.36-5.49% 09/04/96-10/04/96 $1,663,448
2,500 General Motors Acceptance Corp. ................................ 5.43-5.56 09/23/96-11/14/96 2,474,920
-------------
4,138,368
-------------
Bank Holding Companies (15.7%)
1,855 Barnett Banks Inc. ............................................. 5.33-5.36 08/07/96-08/09/96 1,853,305
1,860 Fleet Financial Group, Inc. .................................... 5.36 08/01/96 1,860,000
2,000 PNC Funding Corp. .............................................. 5.45 08/08/96 1,997,892
1,000 U.S. Bancorp ................................................... 5.65 11/05/96 985,200
-------------
6,696,397
-------------
Banks -Commercial (9.3%)
1,500 Canadian Imperial Holdings Inc. ................................ 5.39 08/30/96 1,493,572
500 Dresdner U.S. Finance Inc. ..................................... 5.06 08/26/96 498,288
2,000 National Australia Funding (DE) Inc. ........................... 5.11 08/05/96 1,998,889
-------------
3,990,749
-------------
Brokerage (7.3%)
1,200 Goldman Sachs Group L.P. ....................................... 5.37 08/08/96 1,198,752
1,935 Morgan Stanley Group, Inc. ..................................... 5.35-5.37 08/28/96-09/06/96 1,925,997
-------------
3,124,749
-------------
Canadian Government Agency (3.9%)
1,675 Canadian Wheat Board ........................................... 5.31 08/20/96 1,670,323
-------------
Finance -Consumer (11.4%)
1,900 American Express Credit Corp. .................................. 5.38 08/19/96 1,894,917
1,500 Avco Financial Services Inc. ................................... 5.39 08/14/96 1,497,124
1,500 Norwest Financial, Inc. ........................................ 5.38 08/16/96 1,496,656
-------------
4,888,697
-------------
Finance -Diversified (4.4%)
1,900 Commercial Credit Co. .......................................... 5.37 08/15/96 1,896,054
-------------
Foods & Beverages (5.0%)
1,900 Heinz (H.J.) Co. ............................................... 5.37 08/29/96 1,892,094
250 Unilever Capital Corp. ......................................... 5.48 10/25/96 246,842
-------------
2,138,936
-------------
Healthcare -Diversified (2.2%)
950 SmithKline Beecham Corp. ....................................... 5.36 08/12/96 948,453
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -LIQUID ASSET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF
THOUSANDS PURCHASE MATURITY DATE VALUE
- -------------------------------------------------------------------------------------------------------------------------
Office Equipment (9.4%)
$1,000 IBM Credit Corp. ............................................... 5.37% 08/12/96 $ 998,368
1,135 Pitney Bowes Credit Corp. ...................................... 5.37 08/01/96 1,135,000
400 Xerox Corp. .................................................... 5.31 08/02/96 399,941
1,475 Xerox Credit Corp. ............................................. 5.30 08/20/96 1,470,890
-------------
4,004,199
-------------
Retail (1.9%)
800 Sears Roebuck Acceptance Corp. ................................. 5.38 08/23/96 797,404
-------------
Telephones (3.7%)
1,600 AT&T Corp. ..................................................... 5.38 08/22/96 1,595,035
-------------
TOTAL COMMERCIAL PAPER (Amortized Cost $35,889,364) ........................................... 35,889,364
-------------
CERTIFICATES OF DEPOSIT (8.2%)
2,000 Chase Manhattan Bank (USA) ..................................... 5.42 09/03/96 2,000,000
1,500 Union Bank of California, N.A. ................................. 5.47 09/11/96 1,500,000
-------------
TOTAL CERTIFICATES OF DEPOSIT (Amortized Cost $3,500,000) ..................................... 3,500,000
-------------
SHORT-TERM BANK NOTES (5.9%)
1,000 First National Bank of Boston .................................. 5.47 09/13/96 1,000,000
1,500 La Salle National Bank ......................................... 5.43 09/12/96 1,500,000
-------------
TOTAL SHORT-TERM BANK NOTES (Amortized Cost $2,500,000) ....................................... 2,500,000
-------------
U.S. GOVERNMENT AGENCY (2.4%)
1,030 Federal Home Loan Mortgage Corp. (Amortized Cost $1,029,848) ... 5.32 08/02/96 1,029,848
-------------
BANKERS' ACCEPTANCES (1.9%)
833 First National Bank of Boston (Amortized Cost $831,073) ........ 5.42-5.46 08/05/96-09/03/96 831,073
-------------
TOTAL INVESTMENTS
(Amortized Cost $43,750,285) (a) ............................................ 102.3% 43,750,285
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS .............................. (2.3) (997,647)
------ -------------
NET ASSETS .................................................................. 100.0% $42,752,638
====== =============
</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, 1996
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF
THOUSANDS PURCHASE MATURITY DATE VALUE
- ----------- --------------------------- ------------ ------------------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCIES (97.8%)
$1,965 Federal Farm Credit Bank .. 5.13-5.37% 08/06/96-09/04/96 $1,959,402
2,975 Federal Home Loan Banks ... 5.22-5.38 08/01/96-08/20/96 2,972,929
950 Federal National Mortgage
Assoc. ..................... 5.25-5.29 08/12/96-08/29/96 947,652
600 Tennessee Valley Authority 5.23 08/02/96 599,913
------------
TOTAL U.S. GOVERNMENT AGENCIES
(Amortized Cost $6,479,896) ................................. 6,479,896
------------
U.S. GOVERNMENT OBLIGATION (2.2%)
150 U.S. Treasury Bill
(Amortized Cost $148,319) . 5.53 10/17/96 148,319
------------
TOTAL INVESTMENTS
(Amortized Cost $6,628,215) (a) ........ 100.0% 6,628,215
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS .................................. -- (438)
------ ------------
NET ASSETS .............................. 100.0% $6,627,777
====== ============
</TABLE>
- ------------
(a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
GE>
DEAN WITTER RETIREMENT SERIES -U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS COUPON RATE MATURITY DATE VALUE
- ----------- --------------------------- ----------- ----------------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (93.8%)
Government National
Mortgage Assoc. I (41.9%)
$2,864 ............................ 7.00% 06/15/23-11/15/25 $2,738,773
906 ............................ 7.50 01/15/24-06/15/24 890,021
------------
3,628,794
------------
1,014 Government National
Mortgage Assoc. II (11.2%) 7.00 03/20/26 964,921
------------
U.S. Treasury Notes (25.9%)
800 ............................ 5.75 09/30/97 797,750
100 ............................ 6.00 11/30/97 99,922
1,380 ............................ 5.75 10/31/00 1,340,325
------------
2,237,997
------------
U.S. Treasury Principal Strips (14.8%)
100 ............................ 0.00 08/15/96 99,797
500 ............................ 0.00 05/15/97 477,898
800 ............................ 0.00 08/15/98 705,558
------------
1,283,253
------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS
(Identified Cost $8,342,593) ............................. 8,114,965
------------
SHORT-TERM INVESTMENTS (a) (5.8%)
U.S. GOVERNMENT OBLIGATIONS
500 U.S. Treasury Bills
(Amortized Cost $500,000) . 4.76-4.78 08/01/96 500,000
------------
TOTAL INVESTMENTS
(Identified Cost $8,842,593) (b) ...... 99.6% 8,614,965
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES ............................ 0.4 35,848
----------------- ------------
NET ASSETS ............................. 100.0% $8,650,813
================= ============
</TABLE>
- ------------
(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 approximates
identified cost. The aggregate gross unrealized appreciation was
$61,084 and the aggregate gross unrealized depreciation was
$288,712, resulting in net unrealized depreciation of $227,628.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE BONDS (27.6%)
Automobile -Rentals (2.2%)
$100 Hertz Corp. .................................................... 6.00 % 01/15/03 $ 93,811
------------
Automotive (0.5%)
20 Chrysler Corp. ................................................. 10.40 08/01/99 20,776
------------
Automotive -Finance (0.6%)
25 General Motors Acceptance Corp. ................................ 8.40 10/15/99 26,105
------------
Bank Holding Companies (0.6%)
25 Star Bank N.A. ................................................. 6.375 03/01/04 23,626
------------
Banks (7.0%)
100 ABN-AMRO Bank NV (Netherlands) ................................. 7.55 06/28/06 101,237
100 BankAmerica Corp. .............................................. 6.20 02/15/06 91,384
100 Santander Financial Issuances (Cayman Islands) ................. 7.75 05/15/05 101,312
------------
293,933
------------
Brokerage (2.4%)
100 Bear Stearns Companies, Inc. ................................... 6.75 08/15/00 99,084
------------
Electronics -Semiconductors (2.2%)
100 Texas Instruments, Inc. ........................................ 6.125 02/01/06 91,907
------------
Foreign Government (3.4%)
50 Republic of Indonesia .......................................... 7.75 08/01/06 49,879
100 State of Israel ................................................ 6.375 12/15/05 92,265
------------
142,144
------------
Healthcare (0.6%)
25 Columbia/HCA Healthcare Corp. .................................. 6.87 09/15/03 24,591
------------
Industrials (2.3%)
100 Comdisco, Inc. ................................................. 5.75 02/15/01 95,023
------------
Manufacturing (1.1%)
50 Reebok International Ltd. (United Kingdom) ..................... 6.75 09/15/05 47,236
------------
Paper & Forest Products (2.3%)
100 Noranda Forest, Inc. (Canada) .................................. 6.875 11/15/05 94,805
------------
Textiles (0.6%)
25 Burlington Industries, Inc. .................................... 7.25 09/15/05 23,417
------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------------
Tobacco (0.6%)
$ 25 RJR Nabisco, Inc. .............................................. 8.75 % 08/15/05 $ 24,543
------------
Transportation (1.2%)
50 Union Pacific Corp. ............................................ 7.375 05/15/01 50,528
------------
TOTAL CORPORATE BONDS
(Identified Cost $1,184,627) ....................................................... 1,151,529
------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (69.5%)
100 Federal Home Loan Mortgage Corp. ............................... 6.905 06/11/99 100,051
500 U.S. Treasury Note ............................................. 7.25 11/15/96 502,266
5 U.S. Treasury Note ............................................. 6.375 06/30/97 5,020
1,250 U.S. Treasury Note ............................................. 7.125 09/30/99 1,274,023
100 U.S. Treasury Note ............................................. 5.75 10/31/00 97,125
100 U.S. Treasury Note ............................................. 6.25 02/15/03 97,859
150 U.S. Treasury Note ............................................. 5.75 08/15/03 142,219
650 U.S. Treasury Note ............................................. 7.50 02/15/05 680,672
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Identified Cost $2,985,177) ....................................................... 2,899,235
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $4,169,804) (a) ........................................ 97.1% 4,050,764
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .......................... 2.9 120,952
-------- ------------
NET ASSETS .............................................................. 100.0% $4,171,716
======== ============
</TABLE>
- ------------
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation was
$3,625 and the aggregate gross unrealized depreciation was
$122,665, resulting in net unrealized depreciation of $119,040.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -AMERICAN VALUE
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
COMMON STOCKS (81.4%)
<S> <C> <C>
Aerospace (3.7%)
8,000 Boeing Co. ..................................................... $ 708,000
3,500 Lockheed Martin Corp. .......................................... 290,062
5,000 Raychem Corp. .................................................. 330,625
5,000 Sundstrand Corp. ............................................... 180,625
-------------
1,509,312
-------------
Agriculture Related (1.6%)
8,000 AGCO Corp. ..................................................... 162,000
5,000 Case Corp. ..................................................... 221,250
5,000 Pioneer Hi-Bred International, Inc. ............................ 268,750
-------------
652,000
-------------
Apparel (0.8%)
4,000 Jones Apparel Group, Inc.* ..................................... 206,000
3,000 St. John Knits, Inc. ........................................... 118,500
-------------
324,500
-------------
Auto Related (0.7%)
3,000 Harley-Davidson, Inc. .......................................... 123,000
5,000 Lear Corp.* .................................................... 170,000
-------------
293,000
-------------
Banks (1.8%)
5,000 First Bank System, Inc. ........................................ 306,250
5,000 NationsBank Corp. .............................................. 429,375
-------------
735,625
-------------
Banks -Money Center (2.1%)
5,000 BankAmerica Corp. .............................................. 398,750
5,500 Citicorp ....................................................... 450,312
-------------
849,062
-------------
Beverages -Soft Drinks (2.8%)
6,000 Coca Cola Co. .................................................. 281,250
8,000 Coca-Cola Enterprises, Inc. .................................... 282,000
5,000 Panamerican Beverages, Inc. (Class A) (Mexico) ................. 215,625
11,000 PepsiCo Inc. ................................................... 347,875
-------------
1,126,750
-------------
Biotechnology (0.2%)
4,000 IDEC Pharmaceuticals Corp.* .................................... 61,000
-------------
Brokerage (1.1%)
2,000 Merrill Lynch & Co., Inc. ...................................... 120,750
6,700 Morgan Stanley Group, Inc. ..................................... 326,625
-------------
447,375
-------------
Chemicals (2.5%)
9,900 Cytec Industries, Inc.* ........................................ $ 297,000
17,500 Monsanto Co. ................................................... 546,875
5,000 Witco Corp. .................................................... 145,000
-------------
988,875
-------------
Communications -Equipment &
Software (2.8%)
2,000 Ascend Communications, Inc.* ................................... 96,750
3,000 Cascade Communications Corp.* .................................. 184,125
4,000 Cisco Systems, Inc.* ........................................... 207,000
4,000 Pairgain Technologies, Inc.* ................................... 220,000
6,000 Tellabs, Inc.* ................................................. 358,500
1,000 U.S. Robotics Corp.* ........................................... 53,750
-------------
1,120,125
-------------
Computer Services (3.4%)
2,000 BDM International Inc.* ........................................ 103,000
3,000 Cambridge Technology Partners, Inc.* ........................... 78,375
1,000 CBT Group PLC (ADR)* (Ireland) ................................. 43,000
2,000 Computer Sciences Corp.* ....................................... 136,000
4,000 Dendrite International, Inc.* .................................. 111,000
4,000 DST Systems, Inc.* ............................................. 114,000
3,171 First Data Corp. ............................................... 246,149
2,000 HNC Software, Inc.* ............................................ 50,000
3,000 Keane, Inc.* ................................................... 112,500
1,200 Onewave, Inc.* ................................................. 18,000
3,000 Reuters Holdings PLC (ADR) (United Kingdom) .................... 187,875
6,000 Sterling Commerce, Inc.* ....................................... 189,750
-------------
1,389,649
-------------
Computer Software (2.5%)
4,000 Baan Company NV* (Netherlands) ................................. 118,500
3,000 BMC Software, Inc.* ............................................ 190,500
6,000 Cognos, Inc.* (Canada) ......................................... 120,000
3,000 Computer Associates International, Inc. ......................... 152,625
1,000 Microsoft Corp.* ............................................... 117,750
1,000 Peoplesoft, Inc.* .............................................. 67,500
3,000 Rational Software Corp.* ....................................... 131,625
2,000 Security Dynamics Technologies, Inc.* .......................... 123,000
200 Siebel Systems, Inc.* .......................................... 5,800
-------------
1,027,300
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -AMERICAN VALUE
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Conglomerates (2.4%)
6,100 General Electric Co. ........................................... $ 502,487
4,000 United Technologies Corp. ...................................... 450,500
-------------
952,987
-------------
Consumer/Business Services (2.3%)
6,500 Apollo Group, Inc. (Class A)* .................................. 178,750
14,000 National Education Corp.* ...................................... 211,750
3,000 Reynolds & Reynolds Co. (Class A) .............................. 145,125
7,000 Service Corp. International .................................... 385,875
-------------
921,500
-------------
Consumer Products (3.3%)
5,000 Anheuser-Busch Companies, Inc. ................................. 373,750
6,000 Avon Products, Inc. ............................................ 264,000
5,000 Gillette Co. ................................................... 318,125
6,000 Mondavi (Robert) Corp. (The) (Class A)* ........................ 165,000
10,000 Sunbeam Corporation, Inc. ...................................... 192,500
-------------
1,313,375
-------------
Energy (1.9%)
8,000 Apache Corp. ................................................... 227,000
1,000 Chesapeake Energy Corp.* ....................................... 49,625
3,000 Louisiana Land & Exploration Co. 162,000
6,000 Western Atlas, Inc.* ........................................... 325,500
-------------
764,125
-------------
Entertainment/Gaming & Lodging (6.4%)
8,000 Callaway Golf Co. .............................................. 240,000
10,000 Cannondale Corp.* .............................................. 192,500
8,000 Circus Circus Enterprises, Inc.* ............................... 246,000
13,000 International Game Technology .................................. 227,500
6,000 ITT Corp.* ..................................................... 340,500
6,000 Marriot International, Inc. .................................... 308,250
10,000 MGM Grand, Inc.* ............................................... 373,750
14,000 Mirage Resorts, Inc.* .......................................... 315,000
2,000 Showboat, Inc. ................................................. 41,000
8,000 Sodak Gaming, Inc.* ............................................ 308,000
-------------
2,592,500
-------------
Financial -Miscellaneous (2.5%)
9,000 Aames Financial Corp. .......................................... 353,250
8,000 Federal National Mortgage Assoc. ............................... 254,000
1,900 First USA, Inc. ................................................ 92,862
4,000 Household International, Inc. .................................. 298,000
-------------
998,112
-------------
Hardware & Tools (0.2%)
2,000 Black & Decker Corp. ........................................... 73,500
-------------
Healthcare Products & Services (2.9%)
6,000 HBO & Co. ...................................................... $ 366,000
9,000 Health Management Associates, Inc. (Class A)* .................. 181,125
2,000 Healthsouth Corp.* ............................................. 60,750
10,500 PhyCor, Inc.* .................................................. 317,625
2,000 Shared Medical Systems Corp. ................................... 109,500
4,000 Vivra, Inc.* ................................................... 116,500
-------------
1,151,500
-------------
Household Products (2.7%)
4,000 Clorox Co. ..................................................... 363,500
5,000 Kimberly-Clark Corp. ........................................... 380,000
4,000 Procter & Gamble Co. ........................................... 357,500
-------------
1,101,000
-------------
Insurance (2.1%)
5,000 Allstate Corp. ................................................. 223,750
5,000 Conseco Inc. ................................................... 199,375
4,000 Exel Ltd. (Bermuda) ............................................ 133,000
5,000 SunAmerica, Inc. ............................................... 303,750
-------------
859,875
-------------
Manufacturing -Diversified (0.8%)
9,000 Thermo Electron Corp.* ......................................... 336,375
-------------
Media (6.4%)
8,000 Chancellor Broadcasting Co. (Class A)* ......................... 274,000
5,300 Clear Channel Communications, Inc.* ............................ 422,013
7,000 Emmis Broadcasting Corp. (Class A)* ............................ 288,750
6,000 Evergreen Media Corp. (Class A)* ............................... 262,500
5,000 General Motors Corp. (Class H) ................................. 285,000
14,000 Heftel Broadcasting Corp. (Class A)* ........................... 399,000
10,000 Infinity Broadcasting Corp. (Class A)* ......................... 275,000
6,000 Jacor Communications, Inc.* .................................... 183,000
5,000 Sinclair Broadcast Group, Inc. (Class A)* ...................... 201,250
-------------
2,590,513
-------------
Medical Supplies (1.5%)
3,000 Becton, Dickinson & Co. ........................................ 223,875
5,500 Guidant Corp. .................................................. 279,125
3,000 Target Therapeutics, Inc.* ..................................... 94,500
-------------
597,500
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -AMERICAN VALUE
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Oil Equipment & Services (5.7%)
6,000 Baker Hughes, Inc. ............................................. $ 176,250
5,000 BJ Services Co.* ............................................... 165,625
8,300 Diamond Offshore Drilling, Inc.* ............................... 392,175
3,000 Dresser Industries, Inc. ....................................... 81,000
8,000 Falcon Drilling Company, Inc.* ................................. 166,000
10,000 Global Marine, Inc.* ........................................... 133,750
3,000 Halliburton Co. ................................................ 156,375
10,000 Marine Drilling Company, Inc.* ................................. 83,750
11,000 Reading & Bates Corp.* ......................................... 224,125
6,000 Rowan Companies, Inc.* ......................................... 86,250
4,000 Schlumberger, Ltd. ............................................. 320,000
6,000 Smith International, Inc.* ..................................... 201,000
2,000 Sonat Offshore Drilling, Inc. .................................. 98,000
-------------
2,284,300
-------------
Pharmaceuticals (3.9%)
8,000 American Home Products Corp. ................................... 454,000
3,500 Johnson & Johnson .............................................. 167,125
8,000 Lilly (Eli) & Co. .............................................. 448,000
7,000 Pfizer, Inc. ................................................... 489,125
-------------
1,558,250
-------------
Restaurants (0.2%)
3,500 Starbucks Corp.* ............................................... 91,000
-------------
Retail -Department Stores (1.2%)
3,000 Dayton-Hudson Corp. ............................................ 90,750
7,000 Federated Department Stores, Inc.* ............................. 211,750
6,000 Kohl's Corp.* .................................................. 188,250
-------------
490,750
-------------
Retail -Food Chains (3.9%)
8,000 Albertson's, Inc. .............................................. 328,000
6,000 American Stores Co. ............................................ 223,500
13,000 Safeway, Inc.* ................................................. 468,000
14,000 Vons Companies, Inc.* .......................................... 554,750
-------------
1,574,250
-------------
Retail -General Merchandise (0.3%)
3,000 Sears, Roebuck & Co. ........................................... 123,000
-------------
Retail -Specialty (1.7%)
2,000 Gucci Group NV (Italy) ......................................... 113,500
3,000 Home Depot, Inc. ............................................... 151,500
6,000 Pacific Sunwear of California, Inc.* ............................. 109,500
8,500 Price/Costco, Inc.* ............................................ 173,188
4,000 Tiffany & Co. .................................................. 131,500
-------------
679,188
-------------
Shoes (0.8%)
2,000 Fila Holding SpA (ADR) (Italy) ................................. $ 161,250
1,500 Nike, Inc. (Class B) ........................................... 154,313
-------------
315,563
-------------
Telecommunications (1.5%)
11,000 MFS Communications Company, Inc.* .............................. 346,502
10,000 WorldCom, Inc.* ................................................ 258,750
-------------
605,252
-------------
Tobacco (0.8%)
3,000 Philip Morris Companies, Inc. .................................. 313,875
-------------
TOTAL COMMON STOCKS
(Identified Cost $31,720,261) .................................. 32,812,863
-------------
PREFERRED STOCK (0.5%)
Computer Software
1,300 SAP AG (Germany) (Identified Cost $201,436) .................... 185,840
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
--------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (A) (20.7%)
<S> <C> <C>
U.S. GOVERNMENT AGENCY
Federal Home Loan Banks 5.62% due 08/01/96 (Amortized Cost
$8,350 $8,350,000) .................................................... 8,350,000
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $40,271,697) (b) 102.6% 41,348,703
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS ..................... (2.6) (1,027,339)
-------- -------------
NET ASSETS ....................... 100.0% $40,321,364
======== =============
</TABLE>
- ------------
ADR American Depository Receipt.
* Non-income producing security.
(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 $40,341,168;
the aggregate gross unrealized appreciation is $2,104,967 and the
aggregate gross unrealized depreciation is $1,097,432, resulting in
net unrealized appreciation of $1,007,535.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (89.9%)
Advertising (2.0%)
900 Interpublic Group of Companies, Inc. ........................... $ 39,712
------------
Apparel (2.1%)
800 Cintas Corp.* .................................................. 40,800
------------
Automotive -Replacement Parts (2.1%)
1,000 Genuine Parts Co. .............................................. 42,375
------------
Banking (1.6%)
600 Fifth Third Bancorp. ........................................... 31,050
------------
Beverages -Soft Drinks (2.4%)
1,000 Coca Cola Co. .................................................. 46,875
------------
Business Systems (2.1%)
800 Electronic Data Systems Corp. .................................. 42,300
------------
Chemicals -Specialty (2.1%)
800 Sigma-Aldrich Corp. ............................................ 41,600
------------
Commercial Services (1.0%)
350 Affiliated Computer Services, Inc.* ............................ 18,900
------------
Communications -
Equipment & Software (3.2%)
500 Cisco Systems, Inc.* ........................................... 25,875
400 Tellabs, Inc.* ................................................. 23,900
250 U.S. Robotics Corp.* ........................................... 13,437
------------
63,212
------------
Computer Services (3.3%)
1,000 Automatic Data Processing, Inc. ................................ 39,625
800 Sterling Commerce, Inc.* ....................................... 25,300
------------
64,925
------------
Computer Software (4.7%)
900 Computer Associates International, Inc. ........................ 45,787
400 Microsoft Corp.* ............................................... 47,100
------------
92,887
------------
Consumer Business Services (2.2%)
800 Service Corp. International .................................... 44,100
------------
Drugs (2.2%)
800 Schering-Plough Corp. .......................................... 44,100
------------
Drugs & Healthcare (2.4%)
1,100 Abbott Laboratories ............................................ 48,400
------------
Electronics (4.0%)
1,200 Dionex Corp.* .................................................. 41,700
850 Harman International Industries, Inc. .......................... 38,144
------------
79,844
------------
Environmental Control (0.5%)
400 United Waste Systems, Inc. ..................................... $ 10,200
------------
Financial -Miscellaneous (7.1%)
1,500 Federal National Mortgage Assoc. ............................... 47,625
1,000 Green Tree Financial Corp. ..................................... 33,625
450 Household International, Inc. .................................. 33,525
1,000 Primark Corp.* ................................................. 27,000
------------
141,775
------------
Food Wholesalers (2.0%)
1,400 Sysco Corp. .................................................... 40,600
------------
Foods (3.4%)
1,100 ConAgra, Inc. .................................................. 46,750
400 Wrigley (Wm.) Jr. Co. (Class A) ................................ 20,650
------------
67,400
------------
Gaming (1.7%)
1,100 Circus Circus Enterprises, Inc.* ............................... 33,825
------------
Gold Mining (2.0%)
1,400 Barrick Gold Corp. (Canada) .................................... 39,025
------------
Home Building (2.1%)
2,400 Clayton Homes, Inc. ............................................ 42,000
------------
Hotels/Motels (3.3%)
400 HFS, Inc.* ..................................................... 24,000
2,250 La Quinta Inns, Inc. ........................................... 41,062
------------
65,062
------------
Household Furnishings &
Appliances (1.6%)
1,550 Heilig-Meyers Co. .............................................. 31,775
------------
Insurance (2.1%)
450 American International Group, Inc. ............................. 42,356
------------
Manufacturing (1.6%)
1,450 Federal Signal Corp. ........................................... 31,900
------------
Manufacturing -Diversified (4.0%)
900 Sherwin-Williams Co. ........................................... 40,725
1,050 Thermo Electron Corp.* ......................................... 39,244
------------
79,969
------------
Media (2.0%)
500 Clear Channel Communications, Inc.* ............................ 39,813
------------
Medical Products & Supplies (2.1%)
900 Medtronic Inc . ................................................. 42,638
------------
Oil & Gas Products (1.1%)
700 Input/Output, Inc.* ............................................ 22,050
------------
Pharmaceuticals (2.4%)
1,000 Johnson & Johnson .............................................. 47,750
------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------------------------------
Restaurants (0.8%)
1,260 Brinker International, Inc.* ................................... $ 16,538
------------
Retail -Department Stores (2.2%)
1,800 Wal-Mart Stores, Inc. .......................................... 43,200
------------
Retail -Drugs Stores (2.2%)
1,400 Walgreen Co. ................................................... 44,450
------------
Retail -Food Chains (2.3%)
1,100 Albertson's, Inc. .............................................. 45,100
------------
Retail -Specialty (3.9%)
900 Home Depot, Inc. ............................................... 45,450
1,900 Staples, Inc.* ................................................. 31,350
------------
76,800
------------
Utilities (2.1%)
3,768 Citizens Utilities Co. (Series A)* (Note 3) .................... 41,448
------------
TOTAL COMMON STOCKS (Identified Cost $1,678,590) ............... 1,786,754
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) (14.8%)
<S> <C> <C>
U.S. GOVERNMENT AGENCIES
$175 Federal Farm Credit Bank
5.22% due 08/01/96 ............................................. 175,000
120 Federal Home Loan Banks
5.62% due 08/01/96 ............................................. 120,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Amortized Cost $295,000) ...................................... 295,000
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Identified Cost $1,973,590) (b) 104.7% 2,081,754
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS ................ (4.7) (93,901)
-------- -----------
NET ASSETS ...................... 100.0% $1,987,853
======== ===========
</TABLE>
- ------------
* 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 $1,978,342; the
aggregate gross unrealized appreciation is $166,642 and the aggregate gross
unrealized depreciation is $63,230, resulting in net unrealized
appreciation of $103,412.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (98.1%)
Aerospace (2.7%)
39,000 Raytheon Co. ................................................... $1,891,500
-------------
Aluminum (2.6%)
31,000 Aluminum Co. of America ........................................ 1,798,000
-------------
Automotive (5.3%)
64,000 Chrysler Corp. ................................................. 1,816,000
57,200 Ford Motor Co. ................................................. 1,859,000
-------------
3,675,000
-------------
Banks (2.7%)
21,700 NationsBank Corp. .............................................. 1,863,487
-------------
Banks -Money Center (2.7%)
23,500 BankAmerica Corp. .............................................. 1,874,125
-------------
Beverages -Soft Drinks (2.5%)
56,000 PepsiCo Inc. ................................................... 1,771,000
-------------
Chemicals (5.2%)
23,000 Du Pont (E.I.) de Nemours & Co., Inc. .......................... 1,857,250
34,100 Eastman Chemical Co. ........................................... 1,781,725
-------------
3,638,975
-------------
Computers -Systems (2.7%)
17,500 International Business Machines Corp. .......................... 1,887,812
-------------
Conglomerates (5.2%)
2,700 Imation Corp.* ................................................. 61,425
27,000 Minnesota Mining & Manufacturing Co. ........................... 1,755,000
37,000 Tenneco, Inc. .................................................. 1,822,250
-------------
3,638,675
-------------
Drugs (2.5%)
20,200 Bristol-Myers Squibb Co. ....................................... 1,749,825
-------------
Drugs & Healthcare (2.6%)
42,000 Abbott Laboratories ............................................ 1,848,000
-------------
Electric -Major (2.6%)
21,900 General Electric Co. ........................................... 1,804,012
-------------
Energy (2.6%)
31,500 Kerr-McGee Corp. ............................................... 1,795,500
-------------
Foods (5.2%)
56,000 Quaker Oats Company (The) ...................................... 1,792,000
12,700 Unilever NV (ADR) (Netherlands) ................................ 1,806,575
-------------
3,598,575
-------------
Machinery -Agricultural (2.5%)
50,000 Deere & Co. .................................................... 1,787,500
-------------
Manufacturing -Diversified (5.2%)
34,800 Honeywell, Inc. ................................................ $1,844,400
48,500 Timken Co. ..................................................... 1,776,313
-------------
3,620,713
-------------
Metals & Mining (2.6%)
30,500 Phelps Dodge Corp. ............................................. 1,791,875
-------------
Natural Gas (2.5%)
44,000 Enron Corp. .................................................... 1,732,500
-------------
Office Equipment (2.6%)
38,000 Pitney Bowes, Inc. ............................................. 1,843,000
-------------
Oil -Domestic (5.2%)
26,400 Amoco Corp. .................................................... 1,765,500
50,000 Ashland, Inc. .................................................. 1,831,250
-------------
3,596,750
-------------
Oil Integrated -International (2.6%)
22,000 Exxon Corp. .................................................... 1,809,500
-------------
Paper & Forest Products (2.6%)
43,000 Weyerhaeuser Co. ............................................... 1,795,250
-------------
Photography (2.7%)
25,000 Eastman Kodak Co. .............................................. 1,865,625
-------------
Railroads (2.7%)
38,800 CSX Corp. ...................................................... 1,872,100
-------------
Retail -Department Stores (2.7%)
42,400 May Department Stores Co. ...................................... 1,902,700
-------------
Retail -Food Chains (2.6%)
49,500 American Stores Co. ............................................ 1,843,875
-------------
Telecommunications (2.6%)
49,500 Sprint Corp. ................................................... 1,812,938
-------------
Telephones (2.5%)
30,200 Bell Atlantic Corp. ............................................ 1,785,575
-------------
Tobacco (2.6%)
17,200 Philip Morris Companies, Inc. .................................. 1,799,550
-------------
Utilities -Electric (6.8%)
78,000 Houston Industries, Inc. ....................................... 1,764,750
56,000 New England Electric System .................................... 1,771,000
61,500 Pacific Gas & Electric Co. ..................................... 1,214,625
-------------
4,750,375
-------------
TOTAL COMMON STOCKS
(Identified Cost $61,143,388) .................................. 68,444,312
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (a) (2.4%)
U.S. GOVERNMENT AGENCY
$1,700 Federal Home Loan Banks 5.62% due 08/01/96 (Amortized Cost $1,700,000
$1,700,000) ....................................................
------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
(IDENTIFIED COST $62,843,388) (b) 100.5% 70,144,312
<S> <C> <C>
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS ...................... (0.5) (381,700)
-------- ------------
NET ASSETS ........................ 100.0% $69,762,612
======== ============
</TABLE>
- ------------
ADR American Depository Receipt.
* Non-income producing security.
(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 $62,918,003;
the aggregate gross unrealized appreciation is $8,841,457 and the
aggregate gross unrealized depreciation is $1,615,148, resulting in
net unrealized appreciation of $7,226,309.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -UTILITIES
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (81.7%)
Natural Gas (16.6%)
10,000 American Water Works Company, Inc. ............................. $ 198,750
5,000 Enron Corp. .................................................... 196,875
5,500 MCN Corp. ...................................................... 129,250
5,000 NorAm Energy Corp. ............................................. 54,375
5,000 Pacific Enterprises ............................................ 146,875
3,500 PanEnergy Corp. ................................................ 111,125
4,000 Questar Corp. .................................................. 126,000
2,500 Sonat, Inc. .................................................... 106,562
2,000 Tenneco, Inc. .................................................. 98,500
2,000 Williams Companies, Inc. ....................................... 91,750
-----------
1,260,062
-----------
Telecommunications (35.8%)
5,000 360 Communications Co.* ........................................ 115,625
3,000 Airtouch Communications, Inc.* ................................. 82,500
5,000 Alcatel Alsthom (ADR) (France) ................................. 81,250
4,000 Alltel Corp. ................................................... 109,500
2,000 AT&T Corp. ..................................................... 104,250
3,000 BellSouth Corp. ................................................ 123,000
3,000 Cable & Wireless PLC (ADR) (United Kingdom) .................... 56,625
2,500 Century Telephone Enterprises, Inc. ............................ 79,687
5,000 Comcast Corp. (Class A Special) ................................ 70,625
4,500 Frontier Corp. ................................................. 126,562
3,500 GTE Corp. ...................................................... 144,375
4,000 IntelCom Group, Inc.* .......................................... 77,000
4,000 LCI International, Inc.* ....................................... 121,000
5,000 Liberty Media Group (Class A)* ................................. 110,000
4,200 MCI Communications Corp. ....................................... 102,900
7,000 Metromedia International Group Inc.* ........................... 71,750
2,000 SBC Communications, Inc. ....................................... 97,750
3,000 Sprint Corp. ................................................... 109,875
3,000 Tele Danmark AS (ADR) (Denmark) ................................ 70,125
5,000 Telefonica de Argentina S.A. (ADR) (Argentina) ................. 116,875
3,000 Telefonica de Espana S.A. (ADR) (Spain) ........................ 156,750
2,000 Telefonos de Mexico S.A. de C.V. (Series L) (ADR) (Mexico) ..... 61,250
3,000 Telephone & Data Systems, Inc. ................................. 115,875
2,700 Teleport Communications Group Inc. (Class A)* .................. 41,850
5,000 U.S. West Media Group* ......................................... $ 86,250
3,000 Vodafone Group PLC (ADR) (United Kingdom) ...................... 107,250
7,000 WorldCom, Inc.* ................................................ 181,125
-----------
2,721,624
-----------
Utilities -Electric (29.3%)
3,000 Central & South West Corp. ..................................... 80,250
3,000 CINergy Corp. .................................................. 88,875
4,000 CMS Energy Corp. ............................................... 121,500
4,000 DPL, Inc. ...................................................... 90,500
4,050 DQE, Inc. ...................................................... 110,869
2,500 Duke Power Co. ................................................. 119,687
6,000 Edison International ........................................... 93,000
3,000 Enersis S.A. (ADR) (Chile) ..................................... 91,500
4,000 Entergy Corp. .................................................. 102,000
5,000 General Public Utilities Corp. ................................. 162,500
4,000 Illinova Corp. ................................................. 103,000
3,500 NIPSCO Industries, Inc. ........................................ 130,813
4,000 Northwestern Public Service Co. ................................ 109,500
3,500 PacifiCorp ..................................................... 73,063
5,000 Peco Energy Co. ................................................ 117,500
3,000 Pinnacle West Capital Corp. .................................... 84,750
3,000 Public Service Company of Colorado ............................. 106,125
Public Service Company of
5,000 New Mexico ..................................................... 99,375
4,000 Teco Energy, Inc. .............................................. 93,000
2,800 Unicom Corp. ................................................... 65,800
3,000 Utilicorp United, Inc. ......................................... 80,625
3,500 Western Resources, Inc. ........................................ 100,188
-----------
2,224,420
-----------
TOTAL COMMON STOCKS
(Identified Cost $5,593,805) ................................... 6,206,106
-----------
PREFERRED STOCKS (1.8%)
Utilities -Electric
2,000 Alabama Power Capital Trust I (Series Q) $1.84 ................. 47,000
1,000 Duquesne Capital LP (Series A) $2.09 ........................... 24,625
1,500 Public Service Electric & Gas Co. $2.00 ........................ 36,938
1,000 Virginia Power Capital $2.01 ................................... 24,875
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $137,264) ..................................... 133,438
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -UTILITIES
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BOND (0.6%)
Telecommunications
Southwestern Bell Telephone Co. 7.25% due 07/15/25 (Identified
$50 Cost $51,438) .................................................. $ 46,894
----------
U.S. GOVERNMENT AGENCY (0.3%)
Tennessee Valley Authority
25 8.00% due 03/31/45 (Identified Cost $25,000) ................... 25,375
----------
SHORT-TERM INVESTMENTS (a) (14.5%)
U.S. GOVERNMENT AGENCIES
500 Federal Home Loan Banks 5.62% due 08/01/96 ..................... 500,000
600 Federal Home Loan Mortgage Corp. 5.19% due 08/01/96 ............ 600,000
----------
TOTAL SHORT-TERM INVESTMENTS (Amortized Cost $1,100,000) ....... 1,100,000
----------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
(IDENTIFIED COST $6,907,507) (b) 98.9% 7,511,813
<S> <C> <C>
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES ............ 1.1 81,484
-------- -----------
NET ASSETS ....................... 100.0% $7,593,297
======== ===========
</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 $6,910,995; the
aggregate gross unrealized appreciation is $794,335 and the aggregate
gross unrealized depreciation is $193,517, resulting in net
unrealized appreciation of $600,818.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (97.3%)
Aerospace & Defense (1.4%)
445 Boeing Co. ..................................................... $ 39,382
610 General Dynamics Corp. ......................................... 39,040
490 Lockheed Martin Corp. .......................................... 40,609
950 McDonnell Douglas Corp. ........................................ 42,512
620 Northrop Grumman Corp. ......................................... 42,625
850 Raytheon Co. ................................................... 41,225
800 Rockwell International Corp. ................................... 42,000
325 United Technologies Corp. ...................................... 36,603
-------------
323,996
-------------
Airlines (0.7%)
550 AMR Corp.* ..................................................... 43,381
600 Delta Air Lines, Inc. .......................................... 41,925
1,750 Southwest Airlines Co. ......................................... 43,312
2,400 USAir Group, Inc.* ............................................. 43,800
-------------
172,418
-------------
Aluminum (0.4%)
1,200 Alcan Aluminum Ltd. (Canada) ................................... 35,700
700 Aluminum Co. of America ........................................ 40,600
700 Reynolds Metals Co. ............................................ 35,525
-------------
111,825
-------------
Auto Parts -After Market (0.7%)
2,050 Cooper Tire & Rubber Co. ....................................... 38,694
1,300 Echlin, Inc. ................................................... 43,387
860 Genuine Parts Co. .............................................. 36,442
950 Goodyear Tire & Rubber Co. ..................................... 42,037
-------------
160,560
-------------
Automobiles (0.5%)
1,400 Chrysler Corp. ................................................. 39,725
1,150 Ford Motor Co. ................................................. 37,375
900 General Motors Corp. ........................................... 43,875
-------------
120,975
-------------
Banks -Money Center (1.1%)
495 BankAmerica Corp. .............................................. 39,476
530 Bankers Trust New York Corp. ................................... 38,094
600 Chase Manhattan Corp. .......................................... 41,700
500 Citicorp ....................................................... 40,937
1,050 First Chicago NBD Corp. ........................................ 40,425
450 Morgan (J.P.) & Co., Inc. ...................................... 38,700
-------------
239,332
-------------
Banks -Regional (4.1%)
1,100 Banc One Corp. ................................................. 38,087
750 Bank of Boston Corp. ........................................... 39,750
800 Bank of New York Co., Inc. ..................................... 41,200
600 Barnett Banks, Inc. ............................................ $ 36,825
970 Boatmen's Bancshares, Inc. ..................................... 38,679
880 Comerica, Inc. ................................................. 38,610
1,000 Corestates Financial Corp. ..................................... 39,250
700 Fifth Third Bancorp ............................................ 36,225
650 First Bank System, Inc. ........................................ 39,812
650 First Union Corp. .............................................. 41,275
900 Fleet Financial Group, Inc. .................................... 36,450
1,000 KeyCorp ........................................................ 38,625
750 Mellon Bank Corp. .............................................. 39,562
1,050 National City Corp. ............................................ 36,356
490 NationsBank Corp. .............................................. 42,079
1,050 Norwest Corp. .................................................. 37,275
1,280 PNC Bank Corp. ................................................. 37,280
600 Republic New York Corp. ........................................ 38,025
1,000 SunTrust Banks, Inc. ........................................... 36,750
1,075 U.S. Bancorp ................................................... 36,819
850 Wachovia Corp. ................................................. 37,612
160 Wells Fargo & Co. .............................................. 37,260
-------------
843,806
-------------
Beverages -Alcoholic (0.8%)
570 Anheuser-Busch Companies, Inc. ................................. 42,607
1,100 Brown-Forman Corp. (Class B) ................................... 40,425
2,300 Coors (Adolph) Co. ............................................. 42,550
1,130 Seagram Co. Ltd. (Canada) ...................................... 37,572
-------------
163,154
-------------
Beverages -Soft Drinks (0.4%)
870 Coca Cola Co. .................................................. 40,781
1,160 PepsiCo Inc. ................................................... 36,685
-------------
77,466
-------------
Broadcast Media (0.6%)
2,800 Comcast Corp. (Class A Special) ................................ 39,550
2,500 Tele-Communications, Inc. (Class A)* ........................... 35,625
2,300 U.S. West Media Group* ......................................... 39,675
-------------
114,850
-------------
Building Materials (0.6%)
1,400 Masco Corp. .................................................... 39,025
950 Owens-Corning Fiberglas Corp. .................................. 35,981
900 Sherwin-Williams Co. ........................................... 40,725
-------------
115,731
-------------
Chemicals (1.9%)
750 Air Products & Chemicals, Inc. ................................. 40,031
530 Dow Chemical Co. ............................................... 39,419
445 Du Pont (E.I.) de Nemours & Co., Inc. .......................... 35,934
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
750 Eastman Chemical Co. ........................................... $ 39,187
1,150 Goodrich (B.F.) Co. ............................................ 41,687
750 Hercules, Inc. ................................................. 37,594
1,400 Monsanto Co. ................................................... 43,750
1,080 Praxair, Inc. .................................................. 41,445
600 Rohm & Haas Co. ................................................ 35,700
960 Union Carbide Corp. ............................................ 40,320
-------------
395,067
-------------
Chemicals -Diversified (0.8%)
800 Avery Dennison Corp. ........................................... 41,400
2,000 Engelhard Corp. ................................................ 41,000
650 FMC Corp.* ..................................................... 41,925
800 PPG Industries, Inc. ........................................... 39,400
-------------
163,725
-------------
Chemicals -Specialty (0.9%)
650 Grace (W.R.) & Co. ............................................. 41,437
650 Great Lakes Chemical Corp. ..................................... 37,456
1,070 Morton International, Inc. ..................................... 38,520
1,250 Nalco Chemical Co. ............................................. 37,500
700 Sigma-Aldrich Corp. ............................................ 36,400
-------------
191,313
-------------
Communications -
Equipment/Manufacturers (2.0%)
1,050 3Com Corp.* .................................................... 41,344
950 Andrew Corp.* .................................................. 38,475
1,650 Bay Networks, Inc.* ............................................ 37,950
750 Cabletron Systems, Inc.* ....................................... 42,937
780 Cisco Systems, Inc.* ........................................... 40,365
1,250 DSC Communications Corp.* ...................................... 37,187
1,600 General Instrument Corp.* ...................................... 40,200
850 Northern Telecom Ltd. (Canada) ................................. 39,950
3,100 Scientific-Atlanta, Inc. ....................................... 41,462
700 Tellabs, Inc.* ................................................. 41,825
-------------
401,695
-------------
Computer Software & Services (1.9%)
1,500 Autodesk, Inc. ................................................. 34,500
1,000 Automatic Data Processing, Inc. ................................ 39,625
900 Ceridian Corp.* ................................................ 39,150
820 Computer Associates International, Inc. ........................ 41,717
600 Computer Sciences Corp.* ....................................... 40,800
535 First Data Corp. ............................................... 41,529
350 Microsoft Corp.* ............................................... 41,212
3,700 Novell, Inc.* .................................................. 39,312
1,050 Oracle Corp.* .................................................. 40,950
700 Shared Medical Systems Corp. ................................... 38,325
-------------
397,120
-------------
Computers -Systems (2.6%)
4,500 Amdahl Corp.* .................................................. $ 44,437
2,000 Apple Computer, Inc.* .......................................... 43,750
800 COMPAQ Computer Corp.* ......................................... 43,800
4,050 Data General Corp.* ............................................ 42,019
1,200 Digital Equipment Corp.* ....................................... 42,450
2,000 EMC Corp.* ..................................................... 38,750
1,000 Hewlett-Packard Co. ............................................ 44,000
3,850 Intergraph Corp.* .............................................. 39,944
360 International Business Machines Corp. .......................... 38,835
1,550 Silicon Graphics, Inc.* ........................................ 36,425
750 Sun Microsystems, Inc.* ........................................ 40,875
4,150 Tandem Computers Inc.* ......................................... 43,575
6,200 Unisys Corp.* .................................................. 36,425
-------------
535,285
-------------
Conglomerates (0.6%)
1,130 Teledyne, Inc. ................................................. 40,680
850 Tenneco, Inc. .................................................. 41,862
550 Textron Inc. ................................................... 44,000
-------------
126,542
-------------
Containers -Metal & Glass (0.4%)
1,650 Ball Corp. ..................................................... 41,044
850 Crown Cork & Seal Co., Inc.* ................................... 37,825
-------------
78,869
-------------
Containers -Paper (0.6%)
1,130 Bemis Company, Inc. ............................................ 36,866
3,200 Stone Container Corp. .......................................... 40,000
800 Temple-Inland Inc. ............................................. 37,900
-------------
114,766
-------------
Cosmetics (0.8%)
1,000 Alberto-Culver Co. (Class B) ................................... 43,125
840 Avon Products, Inc. ............................................ 36,960
650 Gillette Co. ................................................... 41,356
900 International Flavors & Fragrances Inc. ........................ 38,475
-------------
159,916
-------------
Distributors -
Consumer Products (0.6%)
2,950 Fleming Cos., Inc. ............................................. 44,619
1,350 SuperValu Stores, Inc. ......................................... 37,631
1,400 Sysco Corp. .................................................... 40,600
-------------
122,850
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Electrical Equipment (1.7%)
1,100 AMP, Inc. ...................................................... $ 42,487
450 Emerson Electric Co. ........................................... 37,969
450 General Electric Co. ........................................... 37,069
950 General Signal Corp. ........................................... 37,169
565 Grainger (W.W.), Inc. .......................................... 39,691
700 Honeywell, Inc. ................................................ 37,100
550 Raychem Corp. .................................................. 36,369
1,100 Thomas & Betts Corp. ........................................... 40,150
2,350 Westinghouse Electric Corp. .................................... 39,362
-------------
347,366
-------------
Electronics -Defense (0.2%)
2,300 EG & G, Inc. ................................................... 41,687
-------------
Electronics -Instrumentation (0.4%)
760 Perkin-Elmer Corp. ............................................. 39,710
950 Tektronix, Inc. ................................................ 36,337
-------------
76,047
-------------
Electronics -Semiconductors (1.5%)
3,300 Advanced Micro Devices, Inc.* .................................. 40,012
1,650 Applied Materials, Inc.* ....................................... 39,187
550 Intel Corp. .................................................... 41,250
1,950 LSI Logic Corp.* ............................................... 38,025
2,000 Micron Technology, Inc. ........................................ 37,500
750 Motorola, Inc. ................................................. 40,500
2,800 National Semiconductor Corp.* .................................. 39,550
900 Texas Instruments Inc. ......................................... 38,925
-------------
314,949
-------------
Engineering & Construction (0.4%)
650 Fluor Corp. .................................................... 39,162
950 Foster Wheeler Corp. ........................................... 40,969
-------------
80,131
-------------
Entertainment (0.8%)
1,050 King World Productions Inc.* ................................... 37,669
1,150 Time Warner, Inc. .............................................. 40,106
1,050 Viacom, Inc. (Class B)* ........................................ 36,750
750 Walt Disney Co. ................................................ 41,719
-------------
156,244
-------------
Financial -Miscellaneous (1.6%)
920 American Express Co. ........................................... 40,250
1,100 American General Corp. ......................................... 38,225
430 Federal Home Loan Mortgage Corp. ............................... 36,227
1,300 Federal National Mortgage Assoc. ............................... 41,275
1,300 Green Tree Financial Corp. ..................................... 43,712
1,500 MBNA Corp. ..................................................... 41,812
700 MGIC Investment Corp. .......................................... 42,000
600 Transamerica Corp. ............................................. 41,475
-------------
324,976
-------------
Foods (2.6%)
2,400 Archer-Daniels-Midland Co. ..................................... $ 42,600
585 Campbell Soup Co. .............................................. 39,707
960 ConAgra, Inc. .................................................. 40,800
550 CPC International Inc. ......................................... 36,781
700 General Mills, Inc. ............................................ 37,975
1,150 Heinz (H.J.) Co. ............................................... 38,094
550 Hershey Foods Corp. ............................................ 45,100
540 Kellogg Co. .................................................... 40,365
1,300 Quaker Oats Company (The) ...................................... 41,600
650 Ralston-Ralston Purina Group ................................... 40,787
1,200 Sara Lee Corp. ................................................. 38,400
280 Unilever NV (ADR) (Netherlands) ................................ 39,830
800 Wrigley (Wm.) Jr. Co. (Class A) ................................ 41,300
-------------
523,339
-------------
Gold Mining (1.4%)
1,550 Barrick Gold Corp. (Canada) .................................... 43,206
4,600 Battle Mountain Gold Co. ....................................... 41,975
4,100 Echo Bay Mines Ltd. (Canada) ................................... 42,025
2,350 Homestake Mining Co. ........................................... 38,481
850 Newmont Mining Corp. ........................................... 41,969
1,650 Placer Dome Inc. (Canada) ...................................... 38,569
3,000 Santa Fe Pacific Gold Corp. .................................... 40,125
-------------
286,350
-------------
Hardware & Tools (0.6%)
1,050 Black & Decker Corp. ........................................... 38,587
950 Snap-On, Inc. .................................................. 42,156
1,340 Stanley Works .................................................. 38,190
-------------
118,933
-------------
Healthcare -Diversified (1.4%)
935 Abbott Laboratories ............................................ 41,140
1,030 Allergan, Inc. ................................................. 41,972
680 American Home Products Corp. ................................... 38,590
470 Bristol-Myers Squibb Co. ....................................... 40,714
840 Johnson & Johnson .............................................. 40,110
1,000 Mallinckrodt Group, Inc. ....................................... 37,375
700 Warner-Lambert Co. ............................................. 38,150
-------------
278,051
-------------
Healthcare -Drugs (1.0%)
690 Lilly (Eli) & Co. .............................................. 38,640
630 Merck & Co., Inc. .............................................. 40,477
550 Pfizer, Inc. ................................................... 38,431
930 Pharmacia & Upjohn, Inc. ....................................... 38,362
750 Schering-Plough Corp. .......................................... 41,344
-------------
197,254
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Healthcare -Miscellaneous (0.8%)
1,650 Alza Corp.* .................................................... $ 40,837
800 Amgen Inc.* .................................................... 43,700
4,200 Beverly Enterprises, Inc.* ..................................... 39,900
1,100 Manor Care, Inc. ............................................... 36,300
-------------
160,737
-------------
Healthcare HMOs (0.4%)
2,550 Humana, Inc.* .................................................. 42,712
1,250 United Healthcare Corp. ........................................ 42,187
-------------
84,899
-------------
Heavy Duty Trucks & Parts (1.2%)
1,100 Cummins Engine Co., Inc. ....................................... 41,112
1,400 Dana Corp. ..................................................... 39,025
700 Eaton Corp. .................................................... 39,025
1,800 ITT Industries, Inc. ........................................... 41,400
4,400 Navistar International Corp.* .................................. 44,000
850 PACCAR, Inc. ................................................... 38,462
-------------
243,024
-------------
Home Building (0.6%)
1,300 Centex Corp. ................................................... 37,700
3,200 Kaufman & Broad Home Corp. ..................................... 38,000
1,500 Pulte Corp. .................................................... 37,875
-------------
113,575
-------------
Hospital Management (0.6%)
700 Columbia/HCA Healthcare Corp. .................................. 35,875
4,600 Community Psychiatric Centers* ................................. 36,800
2,100 Tenet Healthcare Corp.* ........................................ 40,687
-------------
113,362
-------------
Hotels/Motels (0.8%)
1,700 Harrah's Entertainment, Inc.* .................................. 37,400
410 Hilton Hotels Corp. ............................................ 41,820
640 ITT Corp.* ..................................................... 36,320
770 Marriot International, Inc. .................................... 39,559
-------------
155,099
-------------
Household Furnishings & Appliances (0.6%)
680 Armstrong World Industries Inc. ................................ 37,740
1,850 Maytag Corp. ................................................... 37,000
800 Whirlpool Corp. ................................................ 39,400
-------------
114,140
-------------
Household Products (0.8%)
480 Clorox Co. ..................................................... 43,620
500 Colgate-Palmolive Co. .......................................... 39,250
530 Kimberly-Clark Corp. ........................................... $ 40,280
450 Procter & Gamble Co. ........................................... 40,219
-------------
163,369
-------------
Housewares (0.6%)
1,250 Newell Co. ..................................................... 40,156
1,350 Rubbermaid, Inc. ............................................... 38,812
950 Tupperware Corp. ............................................... 40,612
-------------
119,580
-------------
Insurance Brokers (0.6%)
2,300 Alexander & Alexander Services, Inc. ........................... 37,950
800 Aon Corp. ...................................................... 38,900
410 Marsh & McLennan Cos., Inc. .................................... 37,156
-------------
114,006
-------------
Investment Banking/Brokerage (1.0%)
700 Dean Witter, Discover & Co. (Note 3) ........................... 35,612
650 Merrill Lynch & Co., Inc. ...................................... 39,244
900 Morgan Stanley Group, Inc. ..................................... 43,875
950 Salomon, Inc. .................................................. 40,612
900 Travelers Group, Inc. .......................................... 38,025
-------------
197,368
-------------
Leisure Time (0.6%)
1,650 Bally Entertainment Corp.* ..................................... 43,106
2,150 Brunswick Corp. ................................................ 40,850
2,500 Outboard Marine Corp. .......................................... 39,062
-------------
123,018
-------------
Life Insurance (1.2%)
733 Jefferson-Pilot Corp. .......................................... 38,482
950 Lincoln National Corp. ......................................... 40,494
1,000 Providian Corp. ................................................ 39,625
900 Torchmark Corp. ................................................ 38,362
630 UNUM Corp. ..................................................... 38,430
1,350 USLIFE Corp. ................................................... 40,162
-------------
235,555
-------------
Machine Tools (0.4%)
1,800 Cincinnati Milacron, Inc. ...................................... 35,550
3,450 Giddings & Lewis, Inc. ......................................... 39,675
-------------
75,225
-------------
Machinery -Diversified (2.0%)
1,050 Briggs & Stratton Corp. ........................................ 39,506
950 Case Corp. ..................................................... 42,037
550 Caterpillar, Inc. .............................................. 36,231
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
1,070 Cooper Industries, Inc. ........................................ $ 42,131
1,100 Deere & Co. .................................................... 39,325
1,300 Harnischfeger Industries, Inc. ................................. 40,300
1,000 Ingersoll-Rand Co. ............................................. 42,625
750 NACCO Industries, Inc. (Class A) ............................... 38,531
1,150 Timken Co. ..................................................... 42,119
900 Varity Corp.* .................................................. 42,300
-------------
405,105
-------------
Manufactured Housing (0.2%)
1,320 Fleetwood Enterprises, Inc. .................................... 40,095
-------------
Manufacturing -Diversified (1.9%)
675 AlliedSignal, Inc. ............................................. 39,656
1,000 Crane Co. ...................................................... 36,500
900 Dover Corp. .................................................... 38,587
650 Illinois Tool Works Inc. ....................................... 41,844
550 Johnson Controls, Inc. ......................................... 39,600
1,100 Millipore Corp. ................................................ 37,537
1,600 Pall Corp. ..................................................... 38,600
1,200 Parker-Hannifin Corp. .......................................... 41,850
1,400 Trinova Corp. .................................................. 41,650
930 Tyco International Ltd. ........................................ 38,130
-------------
393,954
-------------
Medical Products & Supplies (1.8%)
1,300 Bard (C.R.), Inc. .............................................. 39,650
1,150 Bausch & Lomb, Inc. ............................................ 40,825
900 Baxter International, Inc. ..................................... 37,462
500 Becton, Dickinson & Co. ........................................ 37,312
2,750 Biomet, Inc.* .................................................. 41,937
900 Boston Scientific Corp.* ....................................... 42,975
750 Medtronic Inc. ................................................. 35,531
1,250 St. Jude Medical, Inc.* ........................................ 41,719
1,200 United States Surgical Corp. ................................... 41,100
-------------
358,511
-------------
Metals -Miscellaneous (1.0%)
1,550 ASARCO, Inc. ................................................... 37,200
1,750 Cyprus Amax Minerals Co. ....................................... 37,625
1,400 Freeport-McMoran Copper & Gold, Inc. (Class B) ................. 41,475
1,300 Inco Ltd. (Canada) ............................................. 39,975
650 Phelps Dodge Corp. ............................................. 38,188
-------------
194,463
-------------
Miscellaneous (2.1%)
1,500 Airtouch Communications, Inc.* ................................. $ 41,250
American Greetings Corp.
1,650 (Class A) ...................................................... 39,600
1,100 Corning, Inc. .................................................. 40,563
1,350 Dial Corp. ..................................................... 39,488
850 Harcourt General, Inc. ......................................... 40,694
700 Harris Corp. ................................................... 40,250
2,200 Jostens, Inc. .................................................. 42,075
590 Minnesota Mining & Manufacturing Co. ........................... 38,350
660 Pioneer Hi-Bred International, Inc. ............................ 35,475
450 TRW, Inc. ...................................................... 40,669
1,700 Whitman Corp. .................................................. 38,038
-------------
436,452
-------------
Multi-Line Insurance (0.8%)
700 Aetna Inc. ..................................................... 40,728
1 Aetna Inc. (Class C) (Conv. Pref.) $1.48+ ...................... 58
420 American International Group, Inc. ............................. 39,533
380 CIGNA Corp. .................................................... 40,470
840 ITT Hartford Group, Inc.* ...................................... 44,415
-------------
165,204
-------------
Office Equipment & Supplies (0.8%)
950 Alco Standard Corp. ............................................ 41,563
2,300 Moore Corp. Ltd. (Canada) ...................................... 39,963
800 Pitney Bowes, Inc. ............................................. 38,800
840 Xerox Corp. .................................................... 42,315
-------------
162,641
-------------
Oil & Gas Drilling (0.4%)
1,150 Helmerich & Payne, Inc. ........................................ 40,250
2,600 Rowan Cos., Inc.* .............................................. 37,375
-------------
77,625
-------------
Oil -Domestic Integrated (2.1%)
750 Amerada Hess Corp. ............................................. 36,469
1,150 Ashland, Inc. .................................................. 42,119
350 Atlantic Richfield Co. ......................................... 40,600
750 Kerr-McGee Corp. ............................................... 42,750
775 Louisiana Land & Exploration Co. ............................... 41,850
1,850 Occidental Petroleum Corp. ..................................... 41,394
850 Pennzoil Co. ................................................... 41,756
1,000 Phillips Petroleum Co. ......................................... 39,500
1,400 Sun Co., Inc. .................................................. 36,225
1,140 Unocal Corp. ................................................... 37,193
1,750 USX-Marathon Group ............................................. 35,875
-------------
435,731
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Oil -Exploration & Production (0.6%)
1,000 Burlington Resources, Inc. ..................................... $ 42,750
2,500 Oryx Energy Co.* ............................................... 39,375
3,600 Santa Fe Energy Resources, Inc.* ............................... 40,950
-------------
123,075
-------------
Oil -International Integrated (1.2%)
600 Amoco Corp. .................................................... 40,125
650 Chevron Corp. .................................................. 37,619
450 Exxon Corp. .................................................... 37,013
340 Mobil Corp. .................................................... 37,528
270 Royal Dutch Petroleum Co. (Netherlands) ........................ 40,736
500 Texaco, Inc. ................................................... 42,500
-------------
235,521
-------------
Oil Well Equipment & Services (1.1%)
1,250 Baker Hughes, Inc. ............................................. 36,719
1,450 Dresser Industries, Inc. ....................................... 39,150
720 Halliburton Co. ................................................ 37,530
2,050 McDermott International, Inc. .................................. 37,156
480 Schlumberger, Ltd. ............................................. 38,400
650 Western Atlas, Inc.* ........................................... 35,263
-------------
224,218
-------------
Paper & Forest Products (2.3%)
1,250 Boise Cascade Corp. ............................................ 40,625
950 Champion International Corp. ................................... 40,138
480 Georgia-Pacific Corp. .......................................... 35,880
1,000 International Paper Co. ........................................ 37,875
1,600 James River Corp. of Virginia .................................. 40,400
1,800 Louisiana-Pacific Corp. ........................................ 36,675
700 Mead Corp. ..................................................... 38,325
1,050 Potlatch Corp. ................................................. 39,375
800 Union Camp Corp. ............................................... 38,400
1,450 Westvaco Corp. ................................................. 41,144
850 Weyerhaeuser Co. ............................................... 35,488
700 Willamette Industries, Inc. .................................... 40,600
-------------
464,925
-------------
Personal Loans (0.4%)
700 Beneficial Corp. ............................................... 37,800
515 Household International, Inc. .................................. 38,368
-------------
76,168
-------------
Photography/Imaging (0.4%) .....................................
600 Eastman Kodak Co. .............................................. 44,775
850 Polaroid Corp. ................................................. 35,913
-------------
80,688
-------------
Pollution Control (0.6%)
1,850 Browning-Ferris Industries, Inc. ............................... $ 41,394
4,400 Laidlaw Inc. (Class B) (Canada) ................................ 40,700
1,400 WMX Technologies, Inc. ......................................... 41,475
-------------
123,569
-------------
Property -Casualty Insurance (1.3%)
950 Allstate Corp. ................................................. 42,513
1,000 Chubb Corp. .................................................... 41,750
260 General Re Corp. ............................................... 38,155
500 Loews Corp. .................................................... 40,313
1,100 SAFECO Corp. ................................................... 37,813
690 St. Paul Companies, Inc. ....................................... 35,708
2,400 USF&G Corp. .................................................... 38,100
-------------
274,352
-------------
Publishing (0.6%)
650 Dun & Bradstreet Corp. ......................................... 37,375
1,000 McGraw-Hill, Inc. .............................................. 39,000
1,050 Meredith Corp. ................................................. 42,656
-------------
119,031
-------------
Publishing -Newspaper (1.2%)
950 Dow Jones & Co., Inc. .......................................... 37,169
600 Gannett Co., Inc. .............................................. 39,375
600 Knight-Ridder Newspapers, Inc. ................................. 39,300
1,350 New York Times Co. (Class A) ................................... 39,319
1,045 Times Mirror Co. (Class A) ..................................... 43,237
550 Tribune Co. .................................................... 38,500
-------------
236,900
-------------
Railroads (1.0%)
500 Burlington Northern Santa Fe Corp. ............................. 39,438
600 Conrail, Inc. .................................................. 39,300
850 CSX Corp. ...................................................... 41,013
500 Norfolk Southern Corp. ......................................... 40,438
550 Union Pacific Corp. ............................................ 37,675
-------------
197,864
-------------
Restaurants (1.2%)
5,000 Darden Restaurants, Inc. ....................................... 39,375
1,800 Luby's Cafeterias, Inc. ........................................ 43,650
850 McDonald's Corp. ............................................... 39,419
5,150 Ryan's Family Steak Houses, Inc.* .............................. 38,625
4,400 Shoney's Inc.* ................................................. 40,150
2,050 Wendy's International, Inc. .................................... 34,850
-------------
236,069
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Retail -Department Stores (1.2%)
1,300 Dillard Department Stores, Inc. (Class A) ...................... $ 40,788
1,230 Federated Department Stores, Inc.* ............................. 37,208
1,000 May Department Stores Co. ...................................... 44,875
800 Mercantile Stores Co., Inc. .................................... 39,200
1,000 Nordstrom, Inc. ................................................ 41,375
800 Penney (J.C.) Co., Inc. ........................................ 39,800
-------------
243,246
-------------
Retail -Drug Stores (0.6%)
1,050 Longs Drug Stores Corp. ........................................ 40,688
1,300 Rite Aid Corp. ................................................. 38,675
1,300 Walgreen Co. ................................................... 41,275
-------------
120,638
-------------
Retail -Food Chains (1.2%)
910 Albertson's, Inc. .............................................. 37,310
1,200 American Stores Co. ............................................ 44,700
1,190 Giant Food, Inc. (Class A) ..................................... 40,014
1,450 Great Atlantic & Pacific Tea Co., Inc. ......................... 40,056
960 Kroger Co.* .................................................... 36,240
1,150 Winn-Dixie Stores, Inc. ........................................ 40,250
-------------
238,570
-------------
Retail -General Merchandise (0.8%)
1,350 Dayton-Hudson Corp. ............................................ 40,838
3,800 Kmart Corp.* ................................................... 38,000
950 Sears, Roebuck & Co. ........................................... 38,950
1,650 Wal-Mart Stores, Inc. .......................................... 39,600
-------------
157,388
-------------
Retail -Specialty (1.8%)
1,185 Circuit City Stores, Inc. ...................................... 37,328
800 Home Depot, Inc. ............................................... 40,400
1,300 Lowe's Companies, Inc. ......................................... 42,413
1,030 Melville Corp. ................................................. 40,299
1,250 Pep Boys-Manny Moe & Jack ...................................... 37,813
2,150 Price/Costco, Inc.* ............................................ 43,806
1,000 Tandy Corp. .................................................... 42,250
1,550 Toys 'R' Us, Inc.* ............................................. 40,881
2,100 Woolworth Corp.* ............................................... 40,425
-------------
365,615
-------------
Retail -Specialty Apparel (0.8%)
6,600 Charming Shoppes, Inc. ......................................... 41,663
1,400 Gap, Inc. ...................................................... 41,650
1,950 Limited (The), Inc. ............................................ $ 37,538
1,350 TJX Companies, Inc. ............................................ 40,669
-------------
161,520
-------------
Savings & Loan Companies (0.6%)
1,600 Ahmanson (H.F.) & Co. .......................................... 40,400
700 Golden West Financial Corp. .................................... 38,850
1,580 Great Western Financial Corp. .................................. 37,525
-------------
116,775
-------------
Shoes (0.6%)
400 Nike, Inc. (Class B) ........................................... 41,150
1,200 Reebok International Ltd. (United Kingdom) ..................... 42,000
5,700 Stride Rite Corp. .............................................. 41,325
-------------
124,475
-------------
Specialized Services (1.6%)
1,450 Block (H.&R.), Inc. ............................................ 37,881
1,250 CUC International, Inc.* ....................................... 43,438
1,200 Ecolab, Inc. ................................................... 37,050
1,000 Interpublic Group of Companies, Inc. ........................... 44,125
1,000 National Service Industries, Inc. .............................. 38,125
2,150 Ogden Corp. .................................................... 41,388
2,550 Safety-Kleen Corp. ............................................. 44,306
785 Service Corp. International .................................... 43,273
-------------
329,586
-------------
Specialty Printing (0.6%)
1,075 Deluxe Corp. ................................................... 39,641
1,300 Donnelley (R.R.) & Sons Co. .................................... 41,925
1,550 Harland (John H.) Co. .......................................... 37,588
-------------
119,154
-------------
Steel (1.1%)
8,100 Armco, Inc.* ................................................... 36,450
4,100 Bethlehem Steel Corp.* ......................................... 41,000
2,400 Inland Steel Industries, Inc. .................................. 41,700
800 Nucor Corp. .................................................... 37,500
1,550 USX-U.S. Steel Group ........................................... 39,331
1,950 Worthington Industries, Inc. ................................... 36,806
-------------
232,787
-------------
Telecommunications -Long Distance (0.8%)
850 AT&T Corp. ..................................................... 44,306
1,750 MCI Communications Corp. ....................................... 42,875
1,050 Sprint Corp. ................................................... 38,456
1,600 WorldCom, Inc.* ................................................ 41,400
-------------
167,037
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Textiles (1.0%)
1,550 Fruit of the Loom, Inc. (Class A)* ............................. $ 39,138
1,175 Liz Claiborne, Inc. ............................................ 38,334
1,300 Russell Corp. .................................................. 43,550
800 Springs Industries, Inc. (Class A) ............................. 36,500
650 VF Corp. ....................................................... 36,319
-------------
193,841
-------------
Tobacco (0.6%)
930 American Brands, Inc. .......................................... 42,315
400 Philip Morris Companies, Inc. .................................. 41,850
1,200 UST, Inc. ...................................................... 39,900
-------------
124,065
-------------
Toys (0.4%)
1,050 Hasbro Inc. .................................................... 37,669
1,450 Mattel, Inc. ................................................... 35,888
-------------
73,557
-------------
Transportation -Miscellaneous (0.4%)
500 Federal Express Corp.* ......................................... 38,875
1,450 Ryder System, Inc. ............................................. 38,606
-------------
77,481
-------------
Truckers (0.6%)
2,150 Caliber System, Inc. ........................................... 39,238
2,200 Consolidated Freightways, Inc. ................................. 43,175
2,900 Yellow Corp.* .................................................. 36,613
-------------
119,026
-------------
Utilities -Electric (4.9%)
930 American Electric Power Co., Inc. .............................. 38,595
1,450 Baltimore Gas & Electric Co. ................................... 37,338
1,050 Carolina Power & Light Co. ..................................... 37,800
1,350 Central & South West Corp. ..................................... 36,113
1,330 CINergy Corp. .................................................. 39,401
1,500 Consolidated Edison Co. of New York, Inc. ...................... 40,500
1,500 Detroit Edison Co. ............................................. 43,125
990 Dominion Resources, Inc. ....................................... 37,249
800 Duke Power Co. ................................................. 38,300
2,430 Edison International ........................................... 37,665
1,500 Entergy Corp. .................................................. 38,250
900 FPL Group, Inc. ................................................ 40,838
1,200 General Public Utilities Corp. ................................. 39,000
1,790 Houston Industries, Inc. ....................................... 40,499
5,630 Niagara Mohawk Power Corp.* .................................... 40,818
800 Northern States Power Co. ...................................... $ 35,800
1,850 Ohio Edison Co. ................................................ 38,850
2,050 Pacific Gas & Electric Co. ..................................... 40,488
1,750 PacifiCorp ..................................................... 36,531
1,550 Peco Energy Co. ................................................ 36,425
1,700 PP&L Resources, Inc. ........................................... 38,038
1,450 Public Service Enterprise Group, Inc. .......................... 37,881
1,700 Southern Co. ................................................... 38,463
970 Texas Utilities Co. ............................................ 40,740
1,700 Unicom Corp. ................................................... 39,950
980 Union Electric Co. ............................................. 36,873
-------------
1,005,530
-------------
Utilities -Natural Gas (2.7%)
1,000 Coastal Corp. .................................................. 37,250
760 Columbia Gas System, Inc. ...................................... 40,755
800 Consolidated Natural Gas Co. ................................... 40,300
1,300 Eastern Enterprises ............................................ 41,763
900 Enron Corp. .................................................... 35,438
1,900 ENSERCH Corp. .................................................. 37,525
1,550 NICOR, Inc. .................................................... 43,981
3,750 NorAm Energy Corp. ............................................. 40,781
1,600 ONEOK, Inc. .................................................... 42,200
1,500 Pacific Enterprises ............................................ 44,063
1,300 PanEnergy Corp. ................................................ 41,275
1,200 Peoples Energy Corp. ........................................... 37,350
900 Sonat, Inc. .................................................... 38,363
770 Williams Companies, Inc. ....................................... 35,324
-------------
556,368
-------------
Utilities -Telephone (1.8%)
1,450 Alltel Corp. ................................................... 39,694
750 Ameritech Corp. ................................................ 41,625
700 Bell Atlantic Corp. ............................................ 41,388
950 BellSouth Corp. ................................................ 38,950
1,000 GTE Corp. ...................................................... 41,250
900 NYNEX Corp. .................................................... 40,388
1,150 Pacific Telesis Group .......................................... 38,669
850 SBC Communications, Inc. ....................................... 41,544
1,170 U.S. West Communications Group . ................ 35,539
-------------
359,047
-------------
TOTAL COMMON STOCKS
(Identified Cost $17,671,690) .................................. 19,837,412
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (6.2%)
U.S. GOVERNMENT AGENCY (a) (2.0%)
$ 400 Federal National Mortgage Assoc. 5.26% due 08/13/96 ............ $ 399,299
-------------
REPURCHASE AGREEMENT (4.2%)
The Bank of New York 5.75% due 08/01/96 (dated 07/31/96;
proceeds $861,663; collateralized by $1,021,571 Federal Mortgage
Acceptance Corp. 7.00% due 04/01/24 valued at $878,756)
862 (Identified Cost $861,525) ..................................... 861,525
-------------
TOTAL SHORT-TERM
INVESTMENTS
(Identified Cost $1,260,824) ................................... 1,260,824
-------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
(IDENTIFIED COST $18,932,514) (b) 103.5% 21,098,236
<S> <C> <C>
LIABILITIES IN EXCESS OF
OTHER ASSETS ...................... (3.5) (719,001)
-------- ------------
NET ASSETS ........................ 100.0% $20,379,235
======== ============
</TABLE>
- ------------
ADR American Depository Receipt.
+ Acquired through a special stock dividend.
* Non-income producing security.
(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 $18,942,744;
the aggregate gross unrealized appreciation is $2,929,470 and the
aggregate gross unrealized depreciation is $773,978, resulting in net
unrealized appreciation of $2,155,492.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS (94.8%)
ARGENTINA (0.7%)
Brewery
1,000 Quilmes Industrial S.A. (ADR) .................................. $ 9,625
-------------
Energy
4,300 Perez Companc S.A. (Class B) ................................... 25,113
1,000 Yacimentos Petroliferos Fiscales S.A. (ADR) .................... 21,000
-------------
46,113
-------------
Steel
1,500 Siderar S.A. (A Shares) (ADR)* -144A** ......................... 29,437
-------------
TOTAL ARGENTINA ................................................ 85,175
-------------
AUSTRALIA (1.0%)
Business Services
4,800 Mayne Nickless Ltd. ............................................ 27,285
-------------
Energy
1,700 Broken Hill Proprietary Co. Ltd. ............................... 22,391
-------------
Metals & Mining
20,000 M.I.M. Holdings Ltd. ........................................... 23,357
14,000 Pasminco Ltd. .................................................. 20,248
-------------
43,605
-------------
Retail
7,990 Woolworth's Ltd. ............................................... 17,982
-------------
TOTAL AUSTRALIA ................................................ 111,263
-------------
AUSTRIA (0.3%)
Energy
330 OMV AG ......................................................... 30,740
-------------
BELGIUM (0.2%)
Retail
500 G.I.B. Holdings Ltd. ........................................... 22,126
-------------
BRAZIL (1.6%)
Appliances & Household Durables
2,000 Refrigeracao Parana S.A. (ADR) ................................. 26,260
-------------
Steel & Iron
2,900 Usinas Siderurgicas de Minas Gerais S.A. (S Shares) (ADR) ...... 30,798
-------------
Supermarkets
2,000 Companhia Brasileiras de Distribuicao (GDR) -144A** ............ 35,500
-------------
Telecommunications
900 Telecommunicacoes Brasileiras S.A. (ADR) ....................... $ 65,250
-------------
Utilities -Electric
1,200 Companhia Energetica de Minas Gerais S.A. (ADR) ................ 32,700
-------------
TOTAL BRAZIL ................................................... 190,508
-------------
CANADA (0.4%)
Metals & Mining
1,500 Barrick Gold Corp. ............................................. 41,755
-------------
CHILE (0.8%)
Foods & Beverages
500 Compania Cervecerias Unidas S.A. (ADR) ......................... 11,875
500 Embotelladora Andina S.A. (ADR) ................................ 18,500
-------------
30,375
-------------
Forest Products, Paper & Packaging
1,000 Cristalerias de Chile (ADR) .................................... 24,375
-------------
Telecommunications
350 Compania de Telecommunicaciones de Chile S.A. (ADR) ............ 33,994
-------------
TOTAL CHILE .................................................... 88,744
-------------
DENMARK (0.5%)
Pharmaceuticals
200 Novo-Nordisk AS (Series B) ..................................... 28,975
-------------
Transportation
300 Kobenhavns Lufthavne AS ........................................ 30,065
-------------
TOTAL DENMARK .................................................. 59,040
-------------
EGYPT (0.1%)
Banking
1,000 Commercial International Bank (GDR)* ........................... 13,900
-------------
FINLAND (0.3%)
Manufacturing
800 KCI Konecranes International* .................................. 20,854
500 Valmet Corp. (ADR) ............................................. 15,625
-------------
TOTAL FINLAND .................................................. 36,479
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
FRANCE (2.4%)
Banking
300 Societe Generale ............................................... $ 33,087
-------------
Broadcast Media
200 Societe Television Francaise 1 ................................. 23,499
-------------
Building Materials
200 Compagnie de Saint-Gobain ...................................... 25,140
-------------
Business & Public Services
200 Compagnie Generale des Eaux .................................... 20,577
-------------
Financial Services
350 Credit Local de France ......................................... 29,059
-------------
Foods & Beverages
160 LVMH Moet-Hennessy Louis Vuitton ............................... 35,420
-------------
Pharmaceuticals
550 Sanofi S.A. .................................................... 42,769
-------------
Retail
75 Carrefour Supermarche .......................................... 41,133
180 Castorama Dubois Investissement ................................ 35,200
-------------
76,333
-------------
TOTAL FRANCE ................................................... 285,884
-------------
GERMANY (1.8%)
Apparel
400 Adidas AG ...................................................... 31,239
-------------
Automotive
60 Volkswagen AG .................................................. 20,374
-------------
Business Services
300 SAP AG (Pref.) ................................................. 42,886
-------------
Chemicals
700 BASF AG ........................................................ 18,801
-------------
Manufacturing -Diversified
100 Mannesmann AG .................................................. 35,891
-------------
Pharmaceuticals
100 Gehe AG ........................................................ 62,004
-------------
TOTAL GERMANY .................................................. 211,195
-------------
HONG KONG (4.0%)
Banking
6,000 Hang Seng Bank Ltd. ............................................ 59,549
3,140 HSBC Holdings PLC .............................................. 50,146
-------------
109,695
-------------
Conglomerates
10,000 Hutchison Whampoa, Ltd. ........................................ $ 59,742
6,500 Swire Pacific Ltd. (Class A) ................................... 55,685
-------------
115,427
-------------
Hotels
44,000 Harbour Centre Development ..................................... 57,467
-------------
Real Estate
10,000 Cheung Kong (Holdings) Ltd. .................................... 68,212
3,000 Sun Hung Kai Properties Ltd. ................................... 28,320
-------------
96,532
-------------
Telecommunications
2,700 Hong Kong Telecommunications, Ltd. (ADR) ....................... 44,550
-------------
Transportation
2,500 The Guangshen Railway Co., Ltd. (ADR)* ......................... 45,000
-------------
TOTAL HONG KONG ................................................ 468,671
-------------
INDIA (0.2%)
Aluminum
300 Hindalco Industries Ltd. (GDR)* -144A** ........................ 10,125
-------------
Building & Construction
600 Larsen & Toubro Ltd. (GDR) ..................................... 9,750
-------------
TOTAL INDIA .................................................... 19,875
-------------
INDONESIA (0.3%)
Telecommunications
1,100 PT Indosat (ADR) ............................................... 33,550
-------------
ITALY (1.0%)
Energy
1,500 Ente Nazionale Idrocarburi SpA (ADR) ........................... 66,937
-------------
Telecommunications
10,000 Stet Societa' Finanziaria Telefonica SpA ....................... 30,435
10,000 Telecom Italia Mobile SpA ...................................... 20,949
-------------
51,384
-------------
TOTAL ITALY .................................................... 118,321
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
JAPAN (34.2%)
Automotive
10,000 Mitsubishi Motors Corp. ........................................ $ 84,457
3,000 Suzuki Motor Co. Ltd. .......................................... 35,674
-------------
120,131
-------------
Banking
9,000 Asahi Bank, Ltd. ............................................... 100,281
5,000 Sanwa Bank, Ltd. ............................................... 87,079
5,000 Sumitomo Bank .................................................. 91,760
3,000 Sumitomo Trust & Banking ....................................... 39,326
-------------
318,446
-------------
Brewery
2,000 Kirin Brewery Co., Ltd. ........................................ 23,783
-------------
Building & Construction
8,000 Nishimatsu Construction Co. .................................... 80,899
7,000 Sekisui House Ltd. ............................................. 76,685
-------------
157,584
-------------
Building Materials
2,000 Tostem Corp. ................................................... 61,049
1,000 Toyo Shutter ................................................... 8,708
-------------
69,757
-------------
Business Services
4,000 Dai Nippon Printing Co. Ltd. ................................... 75,281
1,000 Secom Co. ...................................................... 65,543
-------------
140,824
-------------
Chemicals
12,000 Asahi Chemical Industry Co. Ltd. ............................... 82,022
8,000 Kaneka Corp. ................................................... 53,109
6,000 Nippon Shokubai K.K. Co. ....................................... 55,169
3,000 Shin-Etsu Chemical Co. ......................................... 55,744
-------------
246,044
-------------
Computer Software
1,000 Square Co. Ltd. ................................................ 54,120
-------------
Consumer Products
6,000 Kao Corp. ...................................................... 79,775
-------------
Electronics
6,000 Canon, Inc. .................................................... 113,483
9,000 Hitachi, Ltd. .................................................. 74,747
4,000 Matsushita Electric Industrial Co. Ltd. ........................ 69,663
3,000 NEC Corp. ...................................................... 31,461
1,000 Sony Corp. ..................................................... 63,202
-------------
352,556
-------------
Electronics - Semiconductors/Components
1,000 Kyocera Corp. .................................................. $ 68,446
2,000 Rohm Co., Ltd. ................................................. 119,850
2,000 Ryoyo Electro Corp. ............................................ 41,199
-------------
229,495
-------------
Engineering & Construction
2,000 Kajima Corp. ................................................... 19,101
8,000 Kawasaki Heavy Industries ...................................... 38,802
-------------
57,903
-------------
Financial Services
8,000 New Japan Securities Co., Ltd.* ................................ 40,974
3,000 Nomura Securities Co. Ltd. ..................................... 52,528
2,000 Orix Corp. ..................................................... 78,652
1,000 Promise Co., Ltd. .............................................. 48,034
-------------
220,188
-------------
Food Processing
1,000 Stamina Foods .................................................. 8,099
-------------
Furniture
1,000 Itoki Crebio Corp. ............................................. 8,408
-------------
Insurance
5,000 Dai-Tokyo Fire & Marine Insurance Co. Ltd. ..................... 34,878
6,000 Tokio Marine & Fire Insurance Co. .............................. 74,719
-------------
109,597
-------------
International Trade
5,000 Mitsubishi Corp. ............................................... 63,202
13,000 Mitsui & Co. ................................................... 114,663
-------------
177,865
-------------
Leisure
1,000 Nintendo Corp., Ltd. ........................................... 70,037
-------------
Machine Tools
7,000 Asahi Diamond Industries Co. Ltd. .............................. 84,551
-------------
Machinery
2,000 Daikin Industries Ltd. ......................................... 21,161
9,000 Komatsu Ltd. ................................................... 82,500
1,000 Mabuchi Motor Co. .............................................. 61,330
4,000 Minebea Co., Ltd. .............................................. 32,584
11,000 Mitsubishi Heavy Industries, Ltd. .............................. 93,212
1,000 Nippon Thompson Co. ............................................ 7,921
-------------
298,708
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Manufacturing
1,000 Bridgestone Metalpha Corp. ..................................... $ 12,734
2,000 Nippon Electric Glass Co., Ltd. ................................ 34,082
-------------
46,816
-------------
Metals & Mining
21,000 Nippon Steel Co. ............................................... 69,803
-------------
Pharmaceuticals
5,000 Eisai Co. Ltd. ................................................. 92,228
1,000 Terumo ......................................................... 11,985
-------------
104,213
-------------
Real Estate
1,000 Cesar Co. ...................................................... 8,820
10,000 Sumitomo Realty & Development .................................. 73,970
-------------
82,790
-------------
Restaurants
5 Yoshinoya D & C Company Ltd. ................................... 65,543
-------------
Retail
1,000 Aoyama Trading Co., Ltd. ....................................... 27,434
5,000 Izumiya Co. Ltd. ............................................... 94,101
2,000 Jusco Co. ...................................................... 64,420
-------------
185,955
-------------
Steel & Iron
35,000 NKK Corp.* ..................................................... 99,953
-------------
Telecommunications
20 DDI Corp. ...................................................... 161,611
4 Nippon Telegraph & Telephone ................................... 28,539
-------------
190,150
-------------
Textiles -Apparel
4,000 Kuraray Co. Ltd. ............................................... 43,820
4,000 Tokyo Style .................................................... 67,416
-------------
111,236
-------------
Transportation
12 East Japan Railway Co. ......................................... 62,360
9,000 Nippon Yusen Kabushiki Kaish ................................... 50,646
8,000 Yamato Transport Co. Ltd. ...................................... 93,633
-------------
206,639
-------------
TOTAL JAPAN .................................................... 3,990,969
-------------
MALAYSIA (3.0%)
Banking
11,000 DCB Holdings Berhad ............................................ 33,510
4,000 Malayan Banking Berhad ......................................... 34,151
22,666 Public Bank Berhad ............................................. 41,792
-------------
109,453
-------------
Building & Construction
9,000 United Engineers Malaysia Berhad ............................... $ 60,606
-------------
Entertainment
25,000 Magnum Corporation Berhad ...................................... 39,081
-------------
Machinery
6,000 UMW Holdings Berhad ............................................ 22,487
-------------
Natural Gas
5,000 Petronas Gas Berhad ............................................ 19,541
-------------
Telecommunications
12,000 Technology Resources Industries Berhad* ........................ 36,796
-------------
Tobacco
15,000 RJ Reynolds Berhad ............................................. 43,591
-------------
Utilities -Electric
5,000 Tenaga Nasional Berhad ......................................... 21,044
-------------
TOTAL MALAYSIA ................................................. 352,599
-------------
MEXICO (2.3%)
Automotive
3,200 Sanluis Corporacion S.A. de C.V. (Units)++ ..................... 18,737
-------------
Banking
10,000 Grupo Financiero Banamex Accival S.A. de C.V. (B Shares)* ...... 19,122
609 Grupo Financiero Banamex Accival S.A. de C.V. (Series L)* ...... 1,087
-------------
20,209
-------------
Building & Construction
8,000 Corporacion GEO S.A. de C.V. (Series B)* ....................... 34,340
600 Empresas ICA Sociedad Controladora S.A. de C.V. (ADR)* ......... 8,025
-------------
42,365
-------------
Building Materials
3,000 Apasco S.A. de C.V. ............................................ 16,616
1,087 Cementos de Mexico S.A. (B Shares) ............................. 3,885
20,000 Grupo Cementos de Chihuahua S.A. de C.V. (B Shares)* ........... 21,522
-------------
42,023
-------------
Conglomerates
6,914 Grupo Industria Alfa S.A. de C.V. (A Shares) ................... 27,992
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Foods & Beverages
500 Panamerican Beverages, Inc. (Class A) .......................... $ 21,562
-------------
Manufacturing
2,000 Elamax S.A. de C.V.* ........................................... 16,250
-------------
Metals & Mining
2,000 Industrias Penoles S.A. ........................................ 8,282
2,200 Tubos de Acero de Mexico S.A. de C.V. (ADR)* ................... 21,862
-------------
30,144
-------------
Telecommunications
1,800 Telefonos de Mexico S.A. de C.V. (Series L) (ADR) .............. 55,125
-------------
TOTAL MEXICO ................................................... 274,407
-------------
NETHERLANDS (2.5%)
Banking
400 ABN-AMRO Holding NV ............................................ 21,208
-------------
Building Materials
400 Hunter Douglas NV .............................................. 26,268
-------------
Business & Public Services
700 Randstad Holdings NV ........................................... 51,477
-------------
Furniture
700 Ahrend Groep NV ................................................ 29,530
-------------
Insurance
500 Aegon NV ....................................................... 22,939
875 ING Groep NV ................................................... 26,850
-------------
49,789
-------------
Publishing
900 Elsevier NV .................................................... 13,673
200 Wegener NV ..................................................... 21,789
500 Wolters Kluwer NV .............................................. 58,165
-------------
93,627
-------------
Retail
500 Koninklijke Ahold NV ........................................... 25,421
-------------
TOTAL NETHERLANDS .............................................. 297,320
-------------
NEW ZEALAND (0.2%)
Telecommunications
300 Telecom Corporation of New Zealand Ltd. (ADR) .................. 22,087
-------------
NORWAY (0.3%)
Insurance
6,500 UNI Storebrand AS (A Shares)* .................................. $ 31,556
-------------
PANAMA (0.3%)
Banking
700 Banco Latinoamericano de Exportaciones S.A. (E Shares) ......... 35,875
-------------
PERU (0.7%)
Metals & Mining
2,500 Companhia de Minas Buenaventura S.A. (ADR)* .................... 44,687
-------------
Telecommunications
1,500 CPT Telefonica del Peru S.A. (ADR) ............................. 32,813
-------------
TOTAL PERU ..................................................... 77,500
-------------
PORTUGAL (0.2%)
Telecommunications
1,100 Portugal Telecom S.A. (ADR) .................................... 28,187
-------------
SINGAPORE (3.4%)
Banking
4,500 Development Bank of Singapore, Ltd. ............................ 50,966
5,000 United Overseas Bank, Ltd. ..................................... 43,888
-------------
94,854
-------------
Foods & Beverages
4,800 Fraser & Neave Ltd. ............................................ 48,248
-------------
Machinery -Diversified
5,000 Keppel Corp., Ltd. ............................................. 37,871
-------------
Publishing
4,000 Singapore Press Holdings Ltd. .................................. 69,654
-------------
Real Estate
17,000 DBS Land Ltd. .................................................. 53,670
9,000 Singapore Land Ltd. ............................................ 57,655
-------------
111,325
-------------
Transportation
4,000 Singapore Airlines Ltd. ........................................ 40,207
-------------
TOTAL SINGAPORE ................................................ 402,159
-------------
SOUTH KOREA (0.1%)
Utilities -Electric
450 Korea Electric Power Corp. (ADR) ............................... 9,281
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
SPAIN (1.3%)
Banks
1,100 Banco Bilbao Vizcaya ........................................... $ 46,187
200 Banco Popular Espanol S.A. ..................................... 34,513
-------------
80,700
-------------
Telecommunications
500 Telefonica de Espana S.A. (ADR) ................................ 26,125
-------------
Utilities -Electric
700 Empresa Nacional de Electricidad S.A. .......................... 40,914
-------------
TOTAL SPAIN .................................................... 147,739
-------------
SWEDEN (1.6%)
Automotive
1,400 Autoliv AB ..................................................... 39,921
-------------
Business & Public Services
1,200 Assa Abloy AB (Series B) ....................................... 18,929
-------------
Machinery
2,300 Kalmar Industries AB ........................................... 45,176
-------------
Pharmaceuticals
1,000 Astra AB (Series "A" Free) ..................................... 42,089
-------------
Telecommunications
2,250 Ericsson (L.M.) Telephone Co. AB (Series "B" Free) ............. 45,218
-------------
TOTAL SWEDEN ................................................... 191,333
-------------
SWITZERLAND (0.6%)
Pharmaceuticals
30 Ciba-Geigy AG .................................................. 35,614
30 Sandoz AG (Series B) ........................................... 33,283
-------------
TOTAL SWITZERLAND .............................................. 68,897
-------------
UNITED KINGDOM (5.9%)
Aerospace
8,300 Rolls-Royce PLC ................................................ 28,016
-------------
Aerospace & Defense
2,437 British Aerospace PLC .......................................... 35,178
2,900 Smiths Industries PLC .......................................... 32,253
-------------
67,431
-------------
Auto Parts
3,116 BBA Group PLC .................................................. 14,153
-------------
Banking
4,400 Lloyds TSB Group PLC ........................................... $ 23,681
1,970 National Westminster Bank PLC .................................. 19,183
-------------
42,864
-------------
Beverages
1,500 Bass PLC ....................................................... 18,269
2,000 Guinness PLC ................................................... 14,311
-------------
32,580
-------------
Broadcast Media
3,600 Flextech PLC* .................................................. 26,543
-------------
Building & Construction
5,571 Blue Circle Industries PLC ..................................... 31,370
-------------
Business Services
1,400 Compass Group PLC .............................................. 12,195
3,000 Reuters Holdings PLC ........................................... 31,359
-------------
43,554
-------------
Chemicals
4,000 Albright & Wilson PLC .......................................... 11,200
-------------
Consumer Products
2,000 Vendome Luxury Group PLC (Units)++ ............................. 17,795
-------------
Energy
5,378 British Petroleum Co. PLC ...................................... 48,687
2,800 Shell Transport & Trading Co. PLC .............................. 40,178
-------------
88,865
-------------
Food Processing
600 Associated British Foods PLC ................................... 3,714
-------------
Insurance
2,723 General Accident PLC ........................................... 26,473
3,798 Prudential Corp. PLC ........................................... 25,640
5,441 Royal & Sun Alliance Insurance Group PLC ....................... 31,992
-------------
84,105
-------------
Leisure
2,631 Granada Group PLC .............................................. 32,924
-------------
Pharmaceuticals
1,600 Glaxo Wellcome PLC ............................................. 22,262
5,070 Medeva PLC ..................................................... 19,322
-------------
41,584
-------------
Retail
4,300 Next PLC ....................................................... 34,313
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Telecommunications
4,000 British Telecommunications PLC ................................. $ 22,586
4,602 Securicor PLC .................................................. 17,896
-------------
40,482
-------------
Transportation
2,823 British Airways PLC ............................................ 23,054
-------------
Utilities
3,051 Thames Water PLC ............................................... 25,532
-------------
TOTAL UNITED KINGDOM ........................................... 690,079
-------------
UNITED STATES (22.5%)
Aerospace
990 Boeing Co. ..................................................... 87,615
-------------
Aircraft & Aerospace
2,320 Loral Space & Communications* .................................. 32,770
-------------
Aluminum
1,650 Aluminum Co. of America ........................................ 95,700
-------------
Automotive
1,640 General Motors Corp. ........................................... 79,950
-------------
Beverages -Soft Drinks
3,000 PepsiCo Inc. ................................................... 94,875
-------------
Brokerage
1,740 Merrill Lynch & Co., Inc. ...................................... 105,052
-------------
Chemicals
1,200 Dow Chemical Co. ............................................... 89,250
-------------
Computer Software
780 Microsoft Corp.* ............................................... 91,845
-------------
Computers - Peripheral Equipment
4,700 Teradyne, Inc.* ................................................ 63,450
-------------
Computers -Systems
1,760 Hewlett-Packard Co. ............................................ 77,440
1,500 Sun Microsystems, Inc.* ........................................ 81,750
-------------
159,190
-------------
Electrical Equipment
1,640 Honeywell, Inc. ................................................ 86,920
-------------
Electronics - Semiconductors/Components
1,200 Intel Corp. .................................................... 90,000
1,700 Texas Instruments Inc. ......................................... 73,525
-------------
163,525
-------------
Entertainment
3,030 Carnival Corp. (Class A) ....................................... $ 81,431
-------------
Financial -Miscellaneous
3,600 Federal National Mortgage Assoc. ................................ 114,300
-------------
Foods
1,750 General Mills, Inc. ............................................ 94,937
-------------
Gaming
2,200 Circus Circus Enterprises, Inc.* ............................... 67,650
1,480 ITT Corp.* ..................................................... 83,990
-------------
151,640
-------------
Oil Integrated -International
1,600 Chevron Corp. .................................................. 92,600
1,100 Exxon Corp. .................................................... 90,475
830 Mobil Corp. .................................................... 91,611
-------------
274,686
-------------
Paper
2,300 Champion International Corp. ................................... 97,175
-------------
Pharmaceuticals
1,850 American Home Products Corp. ................................... 104,987
1,400 Pfizer, Inc. ................................................... 97,825
-------------
202,812
-------------
Restaurants
1,860 McDonald's Corp. ............................................... 86,258
-------------
Retail
1,900 May Department Stores Co. ...................................... 85,263
3,220 Payless ShoeSource, Inc.* ...................................... 104,248
-------------
189,511
-------------
Tobacco
1,000 Philip Morris Companies, Inc. .................................. 104,625
-------------
Transportation
1,300 Conrail, Inc. .................................................. 85,150
-------------
TOTAL UNITED STATES ............................................ 2,632,667
-------------
VENEZUELA (0.1%)
Steel & Iron
3,000 Siderurgica Venezolana Sivens S.A. de C.V. (ADR) ............... 9,150
-------------
TOTAL COMMON AND PREFERRED STOCKS
(Identified Cost $10,507,747) .................................. 11,079,031
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (5.7%)
U.S. GOVERNMENT AGENCY (a) (4.3%)
$ 500 Federal Home Loan Mortgage Corp. 5.22% due 08/12/96 ............ $499,203
-------------
REPURCHASE AGREEMENT (1.4%)
161 The Bank of New York 5.75% due 08/01/96 (dated 07/31/96;
proceeds $160,672; collateralized by $191,570 Federal Home Loan
Mortgage Corp. 6.50% due 12/15/23 valued at $163,859)
(Identified Cost $160,646) ..................................... 160,646
-------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $659,849) ..................................... 659,849
-------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
(IDENTIFIED COST $11,167,596) (b) 100.5% 11,738,880
<S> <C> <C>
LIABILITIES IN EXCESS OF
OTHER ASSETS ..................... (0.5) (53,637)
------ ------------
NET ASSETS ....................... 100.0% $11,685,243
====== ============
</TABLE>
- ------------
ADR American Depository Receipt.
GDR Global Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
++ Consists of more than one class of securities traded together as a
unit; generally stocks with attached warrants.
(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 $11,181,345;
the aggregate gross unrealized appreciation is $891,541 and the
aggregate gross unrealized depreciation is $334,006, resulting in net
unrealized appreciation of $557,535.
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JULY 31, 1996:
<TABLE>
<CAPTION>
CONTRACTS TO DELIVERY UNREALIZED
RECEIVE IN EXCHANGE FOR DATE DEPRECIATION
- --------------- ---------------- ---------- --------------
<S> <C> <C> <C> <C> <C>
$ 22,787 ARS 22,798 08/02/96 $(12)
DKK 82,729 $ 14,546 08/02/96 (1)
pounds
sterling 14,529 $ 22,651 08/06/96 (50)
--------------
Total unrealized depreciation................ $(63)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -GLOBAL EQUITY
SUMMARY OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------ ------------- ------------
<S> <C> <C>
Aerospace ..................... $ 115,631 1.0%
Aerospace & Defense ........... 67,431 0.6
Aircraft & Aerospace .......... 32,770 0.3
Aluminum ...................... 105,825 0.9
Apparel ....................... 31,239 0.3
Appliances & Household
Durables ..................... 26,260 0.2
Auto Parts .................... 14,153 0.1
Automotive .................... 279,113 2.4
Banking ....................... 799,591 6.8
Banks ......................... 80,700 0.7
Beverages ..................... 32,580 0.3
Beverages -Soft Drinks ........ 94,875 0.8
Brewery ....................... 33,408 0.3
Broadcast Media ............... 50,042 0.4
Brokerage ..................... 105,052 0.9
Building & Construction ...... 301,675 2.6
Building Materials ............ 163,188 1.4
Business & Public Services ... 90,983 0.8
Business Services ............. 254,549 2.2
Chemicals ..................... 365,295 3.1
Computer Software ............. 145,965 1.2
Computers -Peripheral
Equipment .................... 63,450 0.5
Computers -Systems ............ 159,190 1.4
Conglomerates ................. 143,419 1.2
Consumer Products ............. 97,570 0.8
Electrical Equipment .......... 86,920 0.7
Electronics ................... 352,556 3.0
Electronics -Semiconductors/
Components ................... 393,020 3.4
Energy ........................ 255,046 2.2
Engineering & Construction ... 57,903 0.5
Entertainment ................. 120,512 1.0
Financial -Miscellaneous ..... 114,300 1.0
Financial Services ............ 249,247 2.1
Food Processing ............... 11,813 0.1
Foods ......................... $ 94,937 0.8%
Foods & Beverages ............. 135,605 1.2
Forest Products, Paper &
Packaging .................... 24,375 0.2
Furniture ..................... 37,938 0.3
Gaming ........................ 151,640 1.3
Hotels ........................ 57,467 0.5
Insurance ..................... 275,047 2.4
International Trade ........... 177,865 1.5
Leisure ....................... 102,961 0.9
Machine Tools ................. 84,551 0.7
Machinery ..................... 366,371 3.1
Machinery -Diversfied ......... 37,871 0.3
Manufacturing ................. 99,545 0.9
Manufacturing -Diversified ... 35,891 0.3
Metals & Mining ............... 229,994 2.0
Natural Gas ................... 19,541 0.2
Oil Integrated -International 274,686 2.4
Paper ......................... 97,175 0.8
Pharmaceuticals ............... 593,343 5.1
Publishing .................... 163,281 1.4
Real Estate ................... 290,647 2.5
Repurchase Agreement .......... 160,646 1.4
Restaurants ................... 151,801 1.3
Retail ........................ 551,641 4.7
Steel ......................... 29,437 0.2
Steel & Iron .................. 139,901 1.2
Supermarkets .................. 35,500 0.3
Telecommunications ............ 705,711 6.0
Textiles -Apparel ............. 111,236 1.0
Tobacco ....................... 148,216 1.3
Transportation ................ 430,115 3.7
U.S. Government Agency ........ 499,203 4.3
Utilities ..................... 25,532 0.2
Utilities -Electric ........... 103,939 0.9
------------- ------------
$11,738,880 100.5%
============= ============
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ----------------------- ------------- ------------
<S> <C> <C>
Common Stocks .......... $11,036,145 94.4%
Preferred Stocks ....... 42,886 0.4
Short-Term Investments 659,849 5.7
------------- ------------
$11,738,880 100.5%
============= ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES -STRATEGIST
PORTFOLIO OF INVESTMENTS July 31, 1996
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (51.8%)
Aluminum (0.5%)
1,600 Aluminum Co. of America ........................................ $ 92,800
-------------
Appliances & Household Durables (1.3%)
11,000 Maytag Corp. ................................................... 220,000
-------------
Automotive (2.4%)
8,000 Chrysler Corp. ................................................. 227,000
3,500 Ford Motor Co. ................................................. 113,750
1,600 General Motors Corp. ........................................... 78,000
-------------
418,750
-------------
Banks -Money Center (0.5%)
1,000 Citicorp ....................................................... 81,875
-------------
Banks -Regional (0.4%)
330 Wells Fargo & Co. .............................................. 76,849
-------------
Beverages -Soft Drinks (0.6%)
3,400 PepsiCo Inc. ................................................... 107,525
-------------
Biotechnology (0.4%)
900 Chiron Corp.* .................................................. 78,750
-------------
Broadcast Media (0.9%)
9,400 U.S. West Media Group* ......................................... 162,150
-------------
Brokerage (0.9%)
1,350 Merrill Lynch & Co., Inc. ...................................... 81,506
1,600 Morgan Stanley Group, Inc. ..................................... 78,000
-------------
159,506
-------------
Business Systems (0.5%)
1,630 Electronic Data Systems Corp. .................................. 86,186
-------------
Chemicals (1.2%)
1,250 Dow Chemical Co. ............................................... 92,969
3,750 Monsanto Co. ................................................... 117,187
-------------
210,156
-------------
Chemicals -Specialty (0.5%)
2,600 Georgia Gulf Corp. ............................................. 79,950
-------------
Communications -Equipment &
Software (1.0%)
1,840 Cisco Systems, Inc.* ........................................... 95,220
1,900 Newbridge Networks Corp.* (Canada) ............................. 82,650
-------------
177,870
-------------
Computer Equipment (0.4%)
1,360 Seagate Technology, Inc.* ...................................... 65,790
-------------
Computer Services (0.7%)
2,300 Diebold, Inc. .................................................. 125,925
-------------
Computer Software (1.6%)
1,430 Intuit, Inc.* .................................................. $ 50,050
900 Microsoft Corp.* ............................................... 105,975
3,150 Oracle Corp.* .................................................. 122,850
-------------
278,875
-------------
Computers (1.7%)
2,600 Dell Computer Corp.* ........................................... 143,975
3,900 Gateway 2000, Inc.* ............................................ 156,000
-------------
299,975
-------------
Computers -Systems (1.6%)
2,200 Hewlett-Packard Co. ............................................ 96,800
900 International Business Machines Corp. .......................... 97,087
1,650 Sun Microsystems, Inc.* ........................................ 89,925
-------------
283,812
-------------
Conglomerates (1.2%)
2,580 General Electric Co. ........................................... 212,527
-------------
Drugs & Healthcare (0.5%)
1,800 Abbott Laboratories ............................................ 79,200
-------------
Electrical Equipment (1.9%)
2,410 Emerson Electric Co. ........................................... 203,344
1,900 Sony Corp. (ADR) (Japan) ....................................... 121,600
-------------
324,944
-------------
Electronics -
Semiconductors/Components (1.3%)
3,000 Intel Corp. .................................................... 225,000
-------------
Entertainment (1.5%)
10,000 Carnival Corp. (Class A) ....................................... 268,750
-------------
Financial -Miscellaneous (1.7%)
5,000 American Express Co. ........................................... 218,750
2,600 Federal National Mortgage Assoc. ............................... 82,550
-------------
301,300
-------------
Foods (2.2%)
1,430 Campbell Soup Co. .............................................. 97,061
1,260 General Mills, Inc. ............................................ 68,355
7,000 Quaker Oats Company (The) ...................................... 224,000
-------------
389,416
-------------
Gaming (1.2%)
7,000 Circus Circus Enterprises, Inc.* ............................... 215,250
-------------
Hardware & Tools (1.3%)
6,000 Black & Decker Corp. ........................................... 220,500
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -STRATEGIST
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Healthcare -Miscellaneous (2.2%)
11,200 Humana, Inc.* .................................................. $ 187,600
3,000 PacifiCare Health Systems (Class B)* ........................... 202,500
-------------
390,100
-------------
Household Products (1.8%)
1,300 Procter & Gamble Co. ........................................... 116,187
4,800 Tupperware Corp. ............................................... 205,200
-------------
321,387
-------------
Manufacturing -Diversified (1.2%)
3,905 Honeywell, Inc. ................................................ 206,965
-------------
Office Equipment & Supplies (1.3%)
5,000 Alco Standard Corp. ............................................ 218,750
-------------
Oil Drilling & Services (0.6%)
1,350 Schlumberger, Ltd. ............................................. 108,000
-------------
Oil Integrated -International (2.7%)
2,070 Chevron Corp. .................................................. 119,801
1,400 Exxon Corp. .................................................... 115,150
1,000 Mobil Corp. .................................................... 110,375
1,500 Texaco, Inc. ................................................... 127,500
-------------
472,826
-------------
Paper (0.5%)
2,100 Champion International Corp. ................................... 88,725
-------------
Pharmaceuticals (1.4%)
2,400 American Home Products Corp. ................................... 136,200
2,200 Johnson & Johnson .............................................. 105,050
-------------
241,250
-------------
Railroads (1.2%)
1,400 Conrail, Inc. .................................................. 91,700
2,300 CSX Corp. ...................................................... 110,975
-------------
202,675
-------------
Retail -Department Stores (0.7%)
4,200 Dayton-Hudson Corp. ............................................ 127,050
-------------
Retail -Specialty (3.1%)
10,000 Bed Bath & Beyond, Inc.* ....................................... 218,750
2,300 Home Depot, Inc. ............................................... 116,150
9,500 Pier 1 Imports, Inc. ........................................... 160,313
2,400 Price/Costco, Inc.* ............................................ 48,900
-------------
544,113
-------------
Retail -Specialty Apparel (0.7%)
4,400 Gap, Inc. ...................................................... 130,900
-------------
Savings & Loan Associations (0.9%)
1,500 Golden West Financial Corp. .................................... $ 83,250
4,200 Roosevelt Financial Group, Inc. ................................ 67,200
-------------
150,450
-------------
Shoes (0.9%)
1,500 Nike, Inc. (Class B) ........................................... 154,313
-------------
Steel & Iron (0.4%)
4,300 Inland Steel Industries, Inc. .................................. 74,713
-------------
Textiles -Apparel Manufacturers (0.7%)
3,500 Liz Claiborne, Inc. ............................................ 114,188
-------------
Tobacco (1.6%)
6,000 Dimon, Inc. .................................................... 113,250
1,630 Philip Morris Companies, Inc. .................................. 170,539
-------------
283,789
-------------
TOTAL COMMON STOCKS (Identified Cost $8,112,422) ............... 9,073,825
-------------
PREFERRED STOCK (0.1%)
Insurance
172 Aetna Inc. (Class C) (Conv.) $1.48 (Identified Cost $11,244) ... 10,772
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS (3.7%)
Automotive -Finance (0.1%)
$ 15 Ford Capital BV 9.375% due 05/15/01 (Netherlands) .............. 16,381
-------------
Banks (0.6%)
50 CoreStates Financial Corp. 9.625% due 02/15/01 ................. 54,971
50 First Nationwide Bank 10.00% due 10/01/06 ...................... 55,564
-------------
110,535
-------------
Brokerage (0.3%)
50 Paine Webber Group, Inc. 8.25% due 05/01/02 .................... 51,680
-------------
Financial Services (0.6%)
50 Conseco, Inc. 10.50% due 12/15/04 .............................. 57,013
50 RHG Finance Corp. 8.875% due 10/01/05 .......................... 51,486
-------------
108,499
-------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES -STRATEGIST
PORTFOLIO OF INVESTMENTS July 31, 1996, continued
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- --------------------------------------------------------------------------------------------
Hospital Management (0.3%)
$ 50 Columbia/HCA Healthcare Corp. 7.50% due 11/15/95 ............... $ 47,125
-------------
Industrials (0.6%)
50 Lockheed Martin Corp. 7.70% due 06/15/08 ....................... 50,966
50 WMX Technologies Inc. 7.10% due 08/01/26 ....................... 50,313
-------------
101,279
-------------
Oil -Domestic (0.7%)
50 Occidental Petroleum Corp. 11.125% due 08/01/10 ................ 64,005
50 Pennzoil Co. 10.125% due 11/15/09 .............................. 58,808
-------------
122,813
-------------
Steel & Iron (0.1%)
10 Pohang Iron & Steel Co., Ltd. 7.50% due 08/01/02 (South Korea) . 10,062
-------------
Utilities -Electric (0.4%)
20 Long Island Lighting Co. 6.25% due 07/15/01 .................... 18,313
50 Niagara Mohawk Power Corp. 9.25% due 10/01/01 .................. 49,194
-------------
67,507
-------------
TOTAL CORPORATE BONDS
(Identified Cost $645,507) ..................................... 635,881
-------------
U.S. GOVERNMENT OBLIGATIONS (31.8%)
100 U.S. Treasury Bond 6.25% due 08/15/23 .......................... 90,031
150 U.S. Treasury Bond 7.625% due 02/15/25 ......................... 160,453
465 U.S. Treasury Bond 6.875% due 08/15/25 ......................... 456,499
175 U.S. Treasury Note 6.50% due 05/15/97 .......................... 175,820
400 U.S. Treasury Note 6.00% due 08/31/97 .......................... 399,938
50 U.S. Treasury Note 6.375% due 01/15/99 ......................... 50,070
360 U.S. Treasury Note 6.875% due 08/31/99 ......................... 364,331
25 U.S. Treasury Note 7.875% due 11/15/99 ......................... 26,031
800 U.S. Treasury Note 7.75% due 12/31/99 .......................... 831,250
300 U.S. Treasury Note 6.75% due 04/30/00 .......................... 302,391
$505 U.S. Treasury Note 5.625% due 11/30/00 ......................... $ 487,798
400 U.S. Treasury Note 5.75% due 08/15/03 .......................... 379,250
640 U.S. Treasury Note 7.25% due 05/15/04 .......................... 659,900
400 U.S. Treasury Note 7.25% due 08/15/04 .......................... 412,375
350 U.S. Treasury Note 7.50% due 02/15/05 .......................... 366,516
415 U.S. Treasury Note 6.50% due 05/15/05 .......................... 407,738
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Identified Cost $5,627,359) ................................... 5,570,391
-------------
SHORT-TERM INVESTMENTS (26.0%)
U.S. GOVERNMENT AGENCY (a) (22.5%)
3,930 Federal Home Loan Banks 5.62% due 08/01/96 ..................... 3,930,000
-------------
REPURCHASE AGREEMENT (3.5%)
623 The Bank of New York 5.75% due 08/01/96 (dated 07/31/96;
proceeds $623,580; collateralized by $739,303 Federal Mortgage
Acceptance Corp. 7.00% due 04/01/24 valued at $635,950)
(Identified Cost $623,480) ..................................... 623,480
-------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $4,553,480) ................................... 4,553,480
-------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
<S> <C> <C>
(IDENTIFIED COST $18,950,012) (b) 113.4% 19,844,349
LIABILITIES IN EXCESS OF
OTHER ASSETS ...................... (13.4) (2,348,643)
-------- -------------
NET ASSETS ........................ 100.0% $17,495,706
======== =============
</TABLE>
- ------------
ADR American Depository Receipt.
* Non-income producing security.
(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 $18,957,709;
the aggregate gross unrealized appreciation is $1,124,563 and the
aggregate gross unrealized depreciation is $237,923, resulting in net
unrealized appreciation of $886,640.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT U.S. GOVERNMENT INCOME
LIQUID ASSET MONEY MARKET SECURITIES SECURITIES
- ----------------------------------------------- -------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value * ......... $43,750,285 $6,628,215 $8,614,965 $4,050,764
Cash ........................................... 4,083 4,992 50,172 38,178
Receivable for:
Investments sold .............................. -- -- 500,625 --
Shares of beneficial interest sold ............ 24,087 975 25,052 2,734
Dividends ..................................... -- -- -- --
Interest ...................................... 59,564 -- 64,811 92,846
Foreign withholding taxes reclaimed ........... -- -- -- --
Prepaid expenses and other assets .............. 11,778 885 3,121 1,109
Deferred organizational expenses ............... 3,849 4,004 3,918 3,916
Receivable from affiliate ...................... 12,943 17,549 11,011 10,391
-------------- --------------- --------------- --------------
TOTAL ASSETS .................................. 43,866,589 6,656,620 9,273,675 4,199,938
-------------- --------------- --------------- --------------
LIABILITIES:
Payable for:
Investments purchased ......................... -- -- 499,790 --
Shares of beneficial interest repurchased .... 1,071,341 217 92,565 3,601
Dividends to shareholders ..................... -- -- 2,534 1,324
Investment management fees .................... 19,133 -- -- --
Accrued expenses and other payables ............ 18,036 23,030 22,479 17,791
Organizational expenses payable ................ 5,441 5,596 5,494 5,506
-------------- --------------- --------------- --------------
TOTAL LIABILITIES ............................. 1,113,951 28,843 622,862 28,222
-------------- --------------- --------------- --------------
NET ASSETS:
Paid-in-capital ................................ 42,752,596 6,627,775 8,862,015 4,319,568
Accumulated undistributed net investment income 42 2 24 --
Accumulated undistributed net realized gain
(accumulated net realized loss) ............... -- -- 16,402 (28,812)
Net unrealized appreciation (depreciation) .... -- -- (227,628) (119,040)
-------------- --------------- --------------- --------------
NET ASSETS .................................... $42,752,638 $6,627,777 $8,650,813 $4,171,716
============== =============== =============== ==============
*IDENTIFIED COST ............................... $43,750,285 $6,628,215 $8,842,593 $4,169,804
============== =============== =============== ==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING .... 42,752,596 6,627,774 901,751 443,442
============== =============== =============== ==============
NET ASSET VALUE PER SHARE
(unlimited authorized shares of $.01 par
value) ........................................ $1.00 $1.00 $9.59 $9.41
============== =============== =============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND
VALUE GROWTH GROWTH UTILITIES
- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
$41,348,703 $2,081,754 $70,144,312 $7,511,813
27,710 2,111 22,815 78,945
1,170,642 -- 54,036 --
87,588 7,544 118,156 13,594
13,020 1,501 104,192 22,587
--- -- -- 167
201 -- -- 662
5,836 3,305 8,216 1,637
4,096 4,096 3,910 3,918
3,173 6,729 2,874 6,107
- ------------- ------------ ------------- ------------
42,660,969 2,107,040 70,458,511 7,639,430
- ------------- ------------ ------------- ------------
2,241,377 37,443 500,879 --
52,339 60,052 121,898 21,732
--- -- -- --
9,649 -- 27,046 1,375
30,553 16,005 40,575 17,517
5,687 5,687 5,501 5,509
- ------------- ------------ ------------- ------------
2,339,605 119,187 695,899 46,133
- ------------- ------------ ------------- ------------
36,475,819 1,852,813 60,289,273 7,087,008
93,984 2,106 350,190 33,362
2,674,518 24,770 1,822,225 (131,379)
1,077,043 108,164 7,300,924 604,306
- ------------- ------------ ------------- ------------
$40,321,364 $1,987,853 $69,762,612 $7,593,297
============= ============ ============= ============
$40,271,697 $1,973,590 $62,843,388 $6,907,507
============= ============ ============= ============
3,082,783 157,685 4,773,848 643,891
============= ============ ============= ============
$13.08 $12.61 $14.61 $11.79
============= ============ ============= ============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
VALUE-ADDED
MARKET GLOBAL EQUITY STRATEGIST
------------- ------------- -------------
<C> <C> <C>
$21,098,236 $11,738,880 $19,844,349
-- -- --
129,911 30,790 401,453
25,310 20,722 30,357
21,446 9,106 5,836
138 26 127,954
-- 4,683 144
5,037 4,435 1,482
4,096 3,918 3,910
6,301 13,744 3,163
------------- ------------- -------------
21,290,475 11,826,304 20,418,648
------------- ------------- -------------
874,348 90,260 2,867,298
3,225 16,066 21,499
-- -- --
8,370 1,924 6,553
19,610 27,302 22,091
5,687 5,509 5,501
------------- ------------- -------------
911,240 141,061 2,922,942
------------- ------------- -------------
17,893,631 10,700,702 15,790,823
172,103 49,495 174,703
147,779 363,465 635,843
2,165,722 571,581 894,337
------------- ------------- -------------
$20,379,235 $11,685,243 $17,495,706
============= ============= =============
$18,932,514 $11,167,596 $18,950,012
============= ============= =============
1,463,322 990,721 1,388,256
============= ============= =============
$13.93 $11.79 $12.60
============= ============= =============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT U.S. GOVERNMENT INCOME
LIQUID ASSET MONEY MARKET SECURITIES SECURITIES
- ----------------------------------------------------- -------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INCOME
Interest ............................................. $3,628,008 $778,612 $ 484,486 $ 245,172
Dividends ............................................ -- -- -- --
Dividends from affiliate (Note 3) .................... -- -- -- --
-------------- --------------- --------------- --------------
TOTAL INCOME ....................................... 3,628,008 778,612 484,486 245,172
-------------- --------------- --------------- --------------
EXPENSES
Investment management fees ........................... 318,178 69,837 50,913 24,158
Transfer agent fees and expenses ..................... 34,188 6,087 28,515 5,087
Shareholder reports and notices ...................... 27,803 8,061 5,254 2,329
Professional fees .................................... 17,134 15,533 17,898 13,856
Trustees' fees and expenses .......................... 1,243 913 1,278 103
Registration fees .................................... 6,388 9,432 6,948 6,599
Custodian fees ....................................... 1,062 725 192 261
Organizational expenses .............................. 2,734 2,734 2,734 2,734
Other ................................................ 2,131 1,380 2,583 3,684
-------------- --------------- --------------- --------------
TOTAL EXPENSES BEFORE AMOUNTS WAIVED/REIMBURSED .... 410,861 114,702 116,315 58,811
LESS: AMOUNTS WAIVED/REIMBURSED ................... (198,909) (63,212) (66,766) (32,131)
-------------- --------------- --------------- --------------
TOTAL EXPENSES AFTER AMOUNTS WAIVED/REIMBURSED . ... 211,952 51,490 49,549 26,680
-------------- --------------- --------------- --------------
NET INVESTMENT INCOME ............................. 3,416,056 727,122 434,937 218,492
-------------- --------------- --------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments ........................................ -- -- 18,226 (27,045)
Foreign exchange transactions ...................... -- -- -- --
-------------- --------------- --------------- --------------
TOTAL GAIN (LOSS) .................................. -- -- 18,226 (27,045)
-------------- --------------- --------------- --------------
Net change in unrealized appreciation/depreciation
on:
Investments ........................................ -- -- (149,772) (116,038)
Translation of forward foreign currency
contracts, other assets and liabilities
denominated in foreign currencies ................. -- -- -- --
-------------- --------------- --------------- --------------
TOTAL APPRECIATION (DEPRECIATION) .................. -- -- (149,772) (116,038)
-------------- --------------- --------------- --------------
NET GAIN (LOSS) .................................... -- -- (131,546) (143,083)
-------------- --------------- --------------- --------------
NET INCREASE ......................................... $3,416,056 $727,122 $ 303,391 $ 75,409
============== =============== =============== ==============
</TABLE>
- ------------
* Net of $1,671, $21, $6,310, $4,768, $1,074, $12,960 and $11 foreign
withholding tax, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED GLOBAL
VALUE GROWTH GROWTH UTILITIES MARKET EQUITY STRATEGIST
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 203,082 $ 1,783 $ 44,648 $ 31,187 $ 52,053 $ 22,357 $ 253,093
251,988* 15,856* 1,520,953* 213,902* 360,926* 122,604* 101,344*
-- -- -- -- 476 -- --
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
455,070 17,639 1,565,601 245,089 413,455 144,961 354,437
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
273,275 11,858 382,200 48,060 87,508 91,939 85,382
55,485 3,271 64,036 15,021 11,953 30,935 34,726
18,837 330 31,429 5,512 10,311 6,621 8,804
18,618 16,578 15,625 17,989 16,817 15,832 17,933
782 86 1,202 323 683 247 547
7,585 3,213 12,172 5,799 3,723 2,382 8,476
364 92 311 280 490 1,435 476
2,734 2,734 2,734 2,734 2,734 2,734 2,734
2,290 1,411 2,294 1,462 1,472 7,062 2,493
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
379,970 39,573 512,003 97,180 135,691 159,187 161,571
(169,504) (28,933) (191,391) (57,201) (53,608) (98,757) (94,804)
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
210,466 10,640 320,612 39,979 82,083 60,430 66,767
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
244,604 6,999 1,244,989 205,110 331,372 84,531 287,670
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
4,355,860 31,476 2,317,010 (13,965) 186,832 435,387 730,868
-- -- -- -- -- (592) --
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
4,355,860 31,476 2,317,010 (13,965) 186,832 434,795 730,868
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
(2,487,504) 45,817 2,701,826 257,350 1,044,025 47,341 291,438
37 -- -- -- -- 150 --
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
(2,487,467) 45,817 2,701,826 257,350 1,044,025 47,491 291,438
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
1,868,393 77,293 5,018,836 243,385 1,230,857 482,286 1,022,306
- ------------- ---------- ------------ ----------- ------------- ---------- ------------
$ 2,112,997 $ 84,292 $ 6,263,825 $ 448,495 $1,562,229 $ 566,817 $1,309,976
============= ========== ============ =========== ============= ========== ============
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31,
<TABLE>
<CAPTION>
U.S. GOVERNMENT
LIQUID ASSET MONEY MARKET
------------------------------- --------------------------------------
1996 1995 1996 1995
- ----------------------------------------------------- --------------- -------------- -------------- ----------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................ $ 3,416,056 $ 518,526 $ 727,122 $ 83,800
Net realized gain (loss) ............................. -- -- -- --
Net change in unrealized appreciation/depreciation .. -- -- -- --
--------------- -------------- -------------- ----------------------
NET INCREASE ....................................... 3,416,056 518,526 727,122 83,800
--------------- -------------- -------------- ----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ................................ (3,416,043) (518,501) (727,125) (83,795)
Net realized gain .................................... -- -- -- --
--------------- -------------- -------------- ----------------------
TOTAL .............................................. (3,416,043) (518,501) (727,125) (83,795)
--------------- -------------- -------------- ----------------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales .............................. 177,956,895 51,847,905 27,880,399 11,309,909
Reinvestment of dividends and distributions ......... 3,416,043 518,501 727,125 83,795
Cost of shares repurchased ........................... (174,251,486) (18,259,628) (32,674,558) (1,253,703)
--------------- -------------- -------------- ----------------------
NET INCREASE (DECREASE) ............................ 7,121,452 34,106,778 (4,067,034) 10,140,001
--------------- -------------- -------------- ----------------------
TOTAL INCREASE (DECREASE) .......................... 7,121,465 34,106,803 (4,067,037) 10,140,006
NET ASSETS:
Beginning of period .................................. 35,631,173 1,524,370 10,694,814 554,808
--------------- -------------- -------------- ----------------------
END OF PERIOD ...................................... $ 42,752,638 $ 35,631,173 $ 6,627,777 $10,694,814
=============== ============== ============== ======================
UNDISTRIBUTED NET INVESTMENT INCOME .................. $ 42 $ 29 $ 2 $ 5
=============== ============== ============== ======================
SHARES ISSUED AND REPURCHASED:
Sold ................................................. 177,956,895 51,847,905 27,880,399 11,309,909
Issued in reinvestment of dividends and distributions 3,416,043 518,501 727,125 83,795
Repurchased .......................................... (174,251,486) (18,259,628) (32,674,558) (1,253,703)
--------------- -------------- -------------- ----------------------
NET INCREASE (DECREASE) .............................. 7,121,452 34,106,778 (4,067,034) 10,140,001
=============== ============== ============== ======================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
U.S. GOVERNMENT INTERMEDIATE INCOME
SECURITIES SECURITIES AMERICAN VALUE CAPITAL GROWTH
- ---------------------------- -------------------------- ---------------------------- -------------------------------------
1996 1995 1996 1995 1996 1995 1996 1995
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 434,937 $ 199,657 $ 218,492 $ 40,524 $ 244,604 $ 240,274 $ 6,999 $ 5,040
18,226 (1,820) (27,045) 3,997 4,355,860 1,027,331 31,476 924
(149,772) 48,200 (116,038) 12,308 (2,487,467) 3,493,914 45,817 67,202
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
303,391 246,037 75,409 56,829 2,112,997 4,761,519 84,292 73,166
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
(434,913) (200,544) (218,918) (40,260) (299,827) (138,219) (8,566) (3,260)
-- -- (4,854) -- (2,309,181) (1,962) (4,860) --
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
(434,913) (200,544) (223,772) (40,260) (2,609,008) (140,181) (13,426) (3,260)
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
9,509,649 2,981,288 4,840,703 601,204 21,806,112 13,053,502 1,518,128 419,996
433,619 190,802 217,069 39,011 2,602,757 136,829 13,426 3,185
(5,369,758) (1,962,783) (1,731,472) (123,468) (6,172,981) (2,070,877) (292,073) (30,293)
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
4,573,510 1,209,307 3,326,300 516,747 18,235,888 11,119,454 1,239,481 392,888
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
4,441,988 1,254,800 3,177,937 533,316 17,739,877 15,740,792 1,310,347 462,794
4,208,825 2,954,025 993,779 460,463 22,581,487 6,840,695 677,506 214,712
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
$ 8,650,813 $ 4,208,825 $ 4,171,716 $ 993,779 $40,321,364 $22,581,487 $1,987,853 $677,506
============= ============= ============= =========== ============= ============= ============ =======================
$ 24 $ -- $ -- $ 426 $ 93,984 $ 149,207 $ 2,106 $ 3,673
============= ============= ============= =========== ============= ============= ============ =======================
971,490 312,897 499,259 63,283 1,603,955 1,204,547 119,028 40,391
44,420 20,021 22,618 4,153 203,340 13,574 1,087 335
(547,637) (208,493) (181,670) (13,120) (447,666) (184,040) (23,095) (2,856)
- ------------- ------------- ------------- ----------- ------------- ------------- ------------ -----------------------
468,273 124,425 340,207 54,316 1,359,629 1,034,081 97,020 37,870
============= ============= ============= =========== ============= ============= ============ =======================
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
STATEMENTS OF CHANGES IN NET ASSSETS, continued
For the year ended July 31,
<TABLE>
<CAPTION>
DIVIDEND GROWTH UTILITIES
---------------------------- ----------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------ ------------- ------------- ------------- -------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................. $ 1,244,989 $ 832,540 $ 205,110 $ 178,226
Net realized gain (loss) .............................. 2,317,010 160,385 (13,965) (111,170)
Net change in unrealized appreciation/depreciation ... 2,701,826 4,782,860 257,350 449,814
------------- ------------- ------------- -------------------------
NET INCREASE ........................................ 6,263,825 5,775,785 448,495 516,870
------------- ------------- ------------- -------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income ................................. (1,199,564) (622,946) (230,987) (148,664)
Net realized gain ..................................... (590,466) (202,526) -- (7,657)
------------- ------------- ------------- -------------------------
TOTAL ............................................... (1,790,030) (825,472) (230,987) (156,321)
------------- ------------- ------------- -------------------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales ............................... 36,503,267 22,705,910 3,456,194 2,925,355
Reinvestment of dividends and distributions .......... 1,779,713 787,071 227,657 153,082
Cost of shares repurchased ............................ (8,398,184) (5,860,692) (1,687,882) (1,918,748)
------------- ------------- ------------- -------------------------
NET INCREASE (DECREASE) ............................. 29,884,796 17,632,289 1,995,969 1,159,689
------------- ------------- ------------- -------------------------
TOTAL INCREASE (DECREASE) ........................... 34,358,591 22,582,602 2,213,477 1,520,238
NET ASSETS:
Beginning of period ................................... 35,404,021 12,821,419 5,379,820 3,859,582
------------- ------------- ------------- -------------------------
END OF PERIOD ....................................... $69,762,612 $35,404,021 $ 7,593,297 $ 5,379,820
============= ============= ============= =========================
UNDISTRIBUTED NET INVESTMENT INCOME ................... $ 350,190 $ 304,765 $ 33,362 $ 59,239
============= ============= ============= =========================
SHARES ISSUED AND REPURCHASED:
Sold .................................................. 2,524,798 1,985,940 288,411 279,150
Issued in reinvestment of dividends and distributions 126,953 70,952 18,947 14,928
Repurchased ........................................... (583,926) (514,831) (141,590) (186,431)
------------- ------------- ------------- -------------------------
NET INCREASE (DECREASE) ............................... 2,067,825 1,542,061 165,768 107,647
============= ============= ============= =========================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
VALUE-ADDED MARKET GLOBAL EQUITY STRATEGIST
- ---------------------------- --------------------------- ----------------------------------------------
1996 1995 1996 1995 1996 1995
- ------------- ------------- ------------- ------------ ------------- -------------------------------
<S> <C> <C> <C> <C> <C>
$ 331,372 $ 158,945 $ 84,531 $ 121,191 $ 287,670 $ 194,436
186,832 55,495 434,795 (65,955) 730,868 64,346
1,044,025 1,097,897 47,491 520,815 291,438 655,133
- ------------- ------------- ------------- ------------ ------------- -------------------------------
1,562,229 1,312,337 566,817 576,051 1,309,976 913,915
- ------------- ------------- ------------- ------------ ------------- -------------------------------
(257,479) (128,720) (126,784) (51,908) (244,742) (84,091)
(78,439) (57,957) -- -- (159,285) --
- ------------- ------------- ------------- ------------ ------------- -------------------------------
(335,918) (186,677) (126,784) (51,908) (404,027) (84,091)
- ------------- ------------- ------------- ------------ ------------- -------------------------------
6,512,239 8,377,903 6,329,119 5,661,746 12,101,707 6,668,052
329,833 185,438 121,869 48,705 403,090 83,213
(1,769,137) (741,603) (2,492,083) (968,314) (2,673,732) (2,098,857)
- ------------- ------------- ------------- ------------ ------------- -------------------------------
5,072,935 7,821,738 3,958,905 4,742,137 9,831,065 4,652,408
- ------------- ------------- ------------- ------------ ------------- -------------------------------
6,299,246 8,947,398 4,398,938 5,266,280 10,737,014 5,482,232
14,079,989 5,132,591 7,286,305 2,020,025 6,758,692 1,276,460
- ------------- ------------- ------------- ------------ ------------- -------------------------------
$20,379,235 $14,079,989 $11,685,243 $7,286,305 $17,495,706 $ 6,758,692
============= ============= ============= ============ ============= ===============================
$ 172,103 $ 98,210 $ 49,495 $ 91,401 $ 174,703 $ 131,775
============= ============= ============= ============ ============= ===============================
468,279 672,727 542,027 551,389 972,731 671,204
24,706 17,678 10,862 4,871 34,364 8,650
(129,743) (65,288) (214,741) (93,327) (218,134) (211,811)
- ------------- ------------- ------------- ------------ ------------- -------------------------------
363,242 625,117 338,148 462,933 788,961 468,043
============= ============= ============= ============ ============= ===============================
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996
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 COMMENCEMENT OF
OPERATIONS OPERATIONS
--------------------- --------------------
<S> <C> <C> <C>
Liquid Asset ....................... December 30, 1992 Dividend Growth ....... January 7, 1993
U.S. Government Money Market ...... January 20, 1993 Utilities ............. January 8, 1993
U.S. Government Securities ......... January 8, 1993 Value-Added Market .... February 1, 1993
Intermediate Income Securities .... January 12, 1993 Global Equity ......... January 8, 1993
American Value ..................... February 1, 1993 Strategist ............ January 7, 1993
Capital Growth ..................... February 2, 1993
</TABLE>
The investment objectives of each Series are as follows:
<TABLE>
<CAPTION>
SERIES INVESTMENT OBJECTIVE
- ----------------------- ---------------------------------------------------------------------------------
<S> <C>
Liquid Asset Seeks high current income, preservation of capital and liquidity by investing in
short-term money market instruments.
- ----------------------- ---------------------------------------------------------------------------------
U.S. Government Money Seeks high current income, preservation of capital and liquidity by investing
Market primarily in money market instruments which are issued and/or guaranteed by the
U.S. Government, its agencies or instrumentalities.
- ----------------------- ---------------------------------------------------------------------------------
U.S. Government Seeks high current income consistent with safety of principal by investing in a
Securities diversified portfolio of obligations issued and/or guaranteed by the U.S.
Government or its instrumentalities.
- ----------------------- ---------------------------------------------------------------------------------
Intermediate Income Seeks high current income consistent with safety of principal by investing
Securities primarily in intermediate term, investment grade fixed-income securities.
- ----------------------- ---------------------------------------------------------------------------------
American Value Seeks long-term growth consistent with an effort to reduce volatility by
investing principally in common stock of companies in industries which, at the
time of investment, are believed to be undervalued in the marketplace.
- ----------------------- ---------------------------------------------------------------------------------
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
SERIES INVESTMENT OBJECTIVE
- ----------------------- ---------------------------------------------------------------------------------
Capital Growth Seeks long-term capital growth by investing primarily in common stocks.
- ----------------------- ---------------------------------------------------------------------------------
Dividend Growth Seeks to provide reasonable current income and long-term growth of income and
capital by investing primarily in common stock of companies with a record of
paying dividends and the potential for increasing dividends.
- ----------------------- ---------------------------------------------------------------------------------
Strategist Seeks a high total investment return through a fully managed investment policy
utilizing equity securities, investment grade fixed income and money market
securities.
- ----------------------- ---------------------------------------------------------------------------------
Utilities Seeks to provide current income and long-term growth of income and capital by
investing in equity and fixed-income securities of companies in the public
utilities industry.
- ----------------------- ---------------------------------------------------------------------------------
Value-Added Market Seeks to achieve a high level of total return on its assets through a combination
of capital appreciation and current income. It seeks to achieve this objective by
investing, on an equally weighted basis, in a diversified portfolio of common
stocks of the companies which are represented in the Standard & Poor's 500
Composite Stock Price Index.
- ----------------------- ---------------------------------------------------------------------------------
Global Equity Seeks to provide a high level of total return on its assets, primarily through
long-term capital growth and, to a lesser extent, from income. It seeks to
achieve this objective through investments in all types of common stocks and
equivalents, preferred stocks and bonds and other debt obligations of domestic
and foreign companies, governments and international organizations.
- ----------------------- ---------------------------------------------------------------------------------
</TABLE>
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates. 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 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
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
established by and under the general supervision of the Trustees; (4) certain
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 and distributions are recorded on the ex-dividend
date except for certain dividends on foreign securities which are recorded as
soon as the Fund is informed after the ex-dividend date. Interest income is
accrued daily except where collection is not expected. 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 for all other Series are accreted over the
life of the respective securities.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Portfolios
investing in foreign currency denominated transactions 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. The Portfolios 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 -- Some of the Portfolios 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. The Portfolios 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.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
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 or
equally among the Series.
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) and will be reimbursed,
exclusive of amounts waived. Such expenses have been deferred and are being
amortized by the Fund on the straight line method over a period not to exceed
five years from the commencement of operations.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement (the "Agreement"), the Fund
pays the 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
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
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 had undertaken to reimburse the Fund for all expenses
(except for any brokerage fees and a portion of the organizational expenses)
and waive the compensation (the "management fee") provided for in the
Agreement until December 31, 1995. At July 31, 1996, included in the
Statement of Assets and Liabilities are receivables from an affiliate which
represent expense reimbursements due to the Fund. For the period January 1,
1996 through July 31, 1997, the Investment Manager will continue to waive the
management fee and reimburse expenses to the extent they exceed 1.00% of
daily net assets of each Series.
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, 1996 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
---------------------------- ------------------------------
SALES/ SALES/
PURCHASES PREPAYMENTS PURCHASES MATURITIES
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Liquid Asset ................... $ 76,427,868 $ 78,370,000 $947,688,391 $941,077,474
U.S. Government Money Market .. 908,937,524 913,788,475 -- --
U.S. Government Securities .... 7,476,168 3,453,055 -- --
Intermediate Income Securities 6,371,832 3,912,977 1,752,163 965,765
American Value ................. 7,404,435 8,357,071 93,617,353 83,522,312
Capital Growth ................. 21,947 -- 1,924,150 898,643
Dividend Growth ................ -- -- 37,363,095 9,097,587
Utilities ...................... -- -- 2,460,477 980,366
Value-Added Market ............. 25,954 -- 6,435,048 1,318,037
Global Equity .................. -- 13,230 12,001,793 8,348,869
Strategist ..................... 5,842,565 1,875,522 12,225,699 8,154,259
</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 $8,843.
During the year ended July 31, 1996, Capital Growth purchased and
subsequently sold equity securities of Citizens Utilities Co., an affiliate
of the Fund by virtue of a common Trustee, in the amount of $31,421 and
$3,949, respectively.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
For the year ended July 31, 1996, the following respective Series incurred
brokerage commissions with Dean Witter Reynolds Inc. ("DWR"), an affiliate of
the Investment Manager, for portfolio transactions executed on behalf of such
Series.
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND
VALUE GROWTH GROWTH
---------- --------- ----------
<S> <C> <C> <C>
Commissions .. $67,847 $1,774 $30,759
========== ========= ==========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
GLOBAL
UTILITIES EQUITY STRATEGIST
----------- -------- ------------
<S> <C> <C> <C>
Commissions .. $4,140 $5,635 $10,751
=========== ======== ============
</TABLE>
Included in the payable for investments purchased and receivable for
investments sold for unsettled trades with DWR at July 31, 1996 were as
follows:
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND GLOBAL
VALUE GROWTH GROWTH EQUITY STRATEGIST
------------ --------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C>
Payable for investments purchased $1,177,406 $25,481 $392,324 $21,953 $1,379,200
============ ========= ========== ========= ============
Receivable for investments sold .. $ 385,825 $ -- $ 54,036 $ -- $ 103,267
============ ========= ========== ========= ============
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At July 31, 1996 the following Series had approximate
transfer agent fees and expenses payable:
<TABLE>
<CAPTION>
INTERMEDIATE
LIQUID U.S. GOVERNMENT U.S. GOVERNMENT INCOME
ASSET MONEY MARKET SECURITIES SECURITIES AMERICAN VALUE
-------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
$4,100 $500 $3,800 $480 $5,900
======== ================ ================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
CAPITAL DIVIDEND VALUE-ADDED GLOBAL
GROWTH GROWTH UTILITIES MARKET EQUITY STRATEGIST
- --------- ---------- ----------- ------------- -------- ------------
<S> <C> <C> <C> <C> <C>
$300 $7,100 $1,200 $1,300 $5,100 $2,000
========= ========== =========== ============= ======== ============
</TABLE>
4. FEDERAL INCOME TAX STATUS
At July 31, 1996, 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
------------------
2003 2004
-------- --------
<S> <C> <C>
Intermediate Income Securities $ -- $ 5,700
Utilities ...................... 62,800 39,200
</TABLE>
During the year ended July 31, 1996, the following Series utilized
approximate net capital loss carryovers:
Capital Growth --$900; Global Equity --$3,500.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS July 31, 1996, continued
Net capital and net currency 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 post-October losses during fiscal 1996:
<TABLE>
<CAPTION>
INTERMEDIATE
INCOME GLOBAL
SECURITIES UTILITIES EQUITY
- -------------- ----------- --------
<S> <C> <C>
$23,110 $25,929 $939
============== =========== ========
</TABLE>
At July 31, 1996, the primary reason(s) for temporary book/tax differences
were as follows:
<TABLE>
<CAPTION>
POST-OCTOBER CAPITAL LOSS DEFERRALS
LOSSES FROM WASH SALES
---------------- --------------------------
<S> <C> <C>
Intermediate Income Securities .... o
American Value ..................... o
Capital Growth ..................... o
Dividend Growth .................... o
Utilities .......................... o o
Value-Added Market ................. o
Global Equity ...................... o o
Strategist ......................... o
</TABLE>
Additionally, Global Equity had temporary book/tax differences attributable
to income from the mark-to-market of passive foreign investment companies.
5. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
Some of the Portfolios may enter into forward foreign 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. Global Equity is
also permitted to write covered call options on securities and certain
foreign currencies to hedge against a decline in the value of a security or
the underlying currency of such security.
At July 31, 1996, Global Equity had outstanding forward contracts 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. The Portfolios 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 AND
JULY 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS TO 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)
1996 1.00 0.05 -- 0.05 (0.05) -- (0.05)
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)
1996 1.00 0.05 -- 0.05 (0.05) -- (0.05)
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)
1996 9.71 0.55 (0.12) 0.43 (0.55) -- (0.55)
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)
1996 9.63 0.59 (0.21) 0.38 (0.59) (0.01) (0.60)
AMERICAN VALUE
1993 (5) 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)
1996 13.10 0.09 1.17 1.26 (0.15) (1.13) (1.28)
</TABLE>
- ------------
* After application of the Fund's expense limitation.
+ Calculated based on the net asset value as of the last business day of the
period.
++ Includes dividends from net investment income of $0.004 per share.
Commencement of operations:
(1) December 30, 1992.
(2) January 20, 1993.
(3) January 8, 1993.
(4) January 12, 1993.
(5) February 1, 1993.
(a) Not annualized.
(b) Annualized.
(c) Restated.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS (BEFORE EXPENSES ASSETS (AFTER EXPENSES
WERE ASSUMED)* WERE ASSUMED)
------------------------- -------------------------
NET ASSET NET ASSETS
VALUE TOTAL END OF NET NET PORTFOLIO AVERAGE
END OF INVESTMENT PERIOD INVESTMENT INVESTMENT TURNOVER COMMISSION
PERIOD RETURN+ (OOO'S) EXPENSES INCOME (LOSS) EXPENSES INCOME (LOSS) RATE RATE PAID
- ----------- ------------ ------------ ---------- ------------- ---------- ------------- ----------- ------------
<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 N/A
1.00 3.48 1,524 2.50 0.99 -- 3.49 N/A N/A
1.00 5.90 35,631 1.16 4.96 -- 6.12 N/A N/A
1.00 5.44 42,753 0.65 5.05 0.33 5.37 N/A N/A
1.00 0.42 (a) 125 2.50 (b) (0.95)(b) 2.13 (b) 0.83 (b) N/A N/A
1.00 3.52 555 2.50 0.82 -- 3.32 N/A N/A
1.00 5.86 10,695 2.50 3.62 -- 6.12 N/A N/A
1.00 5.23 6,628 0.82 4.75 0.37 5.21 N/A N/A
10.06 2.60 (a) 1,756 1.81 (b) 0.33 (b) 0.18 (b) 3.66 (b) -- N/A
9.56 (0.69) 2,954 2.50 1.96 -- 4.46 (c) 29% N/A
9.71 7.72 4,209 2.36 3.49 -- 5.85 14 N/A
9.59 4.49 8,651 1.48 4.70 0.63 5.55 47 N/A
9.98 1.67 (a) 182 2.50 (b) 1.00 (b) 1.62 (b) 3.50 (b) -- N/A
9.41 0.26 460 2.50 3.64 -- 6.14 40 N/A
9.63 9.22 994 2.50 4.08 -- 6.58 37 N/A
9.41 3.95 4,172 1.58 5.01 0.72 5.87 142 N/A
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 --
13.08 9.83 40,321 1.18 0.23 0.65 0.76 301 $0.0543
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL HIGHLIGHTS, continued
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 AND
JULY 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS TO SHAREHOLDERS DISTRIBUTIONS
- ------------ ----------- ------------ -------------- ------------ -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
1993 (4) $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)
1996 11.17 0.07 1.55 1.62 (0.11) (0.07) (0.18)
DIVIDEND GROWTH
1993 (2) 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)
1996 13.08 0.32 1.76 2.08 (0.36) (0.19) (0.55)
UTILITIES
1993 (1) 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)
1996 11.25 0.38 0.61 0.99 (0.45) -- (0.45)
VALUE-ADDED MARKET
1993 (3) 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)
1996 12.80 0.25 1.17 1.42 (0.22) (0.07) (0.29)
GLOBAL EQUITY
1993 (1) 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)
1996 11.17 0.09 0.71 0.80 (0.18) -- (0.18)
STRATEGIST
1993 (2) 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)
1996 11.28 0.25 1.63 1.88 (0.34) (0.22) (0.56)
</TABLE>
- ------------
* After application of the Fund's expense limitation.
+ Calculated based on the net asset value as of the last business day of the
period.
Commencement of operations:
(1) January 8, 1993.
(2) January 7, 1993.
(3) February 1, 1993.
(4) February 2, 1993.
(a) Not annualized.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS (BEFORE EXPENSES ASSETS (AFTER EXPENSES
WERE ASSUMED)* WERE ASSUMED)
------------------------- -------------------------
NET ASSET NET ASSETS
VALUE TOTAL END OF NET NET PORTFOLIO AVERAGE
END OF INVESTMENT PERIOD INVESTMENT INVESTMENT TURNOVER COMMISSION
PERIOD RETURN+ (OOO'S) EXPENSES INCOME (LOSS) EXPENSES INCOME (LOSS) RATE RATE PAID
- ----------- ------------- ------------ ---------- ------------- ---------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 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 --
12.61 14.58 1,988 2.50 (1.24) 0.76 0.50 68 $0.0536
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 --
14.61 16.09 69,763 1.00 2.07 0.63 2.44 18 0.0526
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 --
11.79 8.76 7,593 1.52 2.31 0.62 3.20 17 0.0508
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 --
13.93 11.19 20,379 0.78 1.58 0.47 1.89 8 0.0300
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 --
11.79 7.26 11,685 1.73 (0.15) 0.66 0.92 95 0.0500
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 --
12.60 16.97 17,496 1.61 1.92 0.66 2.86 113 0.0525
</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, 1996, 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 at July 31, 1996 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
September 13, 1996
1996 FEDERAL INCOME TAX NOTICE (unaudited)
During the year ended July 31, 1996, the Fund paid to shareholders
long-term capital gains per share as follows:
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED
VALUE GROWTH GROWTH MARKET STRATEGIST
- ---------- --------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
$0.06 $0.07 $0.07 $0.02 $0.01
</TABLE>
Additionally, the following percentages of ordinary income dividends
(including short-term capital gain distributions, if applicable) paid to
shareholders 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>
8.1% 74.5% 90.1% 87.2% 58.9% 6.3% 14.4%
</TABLE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
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
INVESTMENT 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, 1996
DEAN WITTER
RETIREMENT SERIES
