<PAGE>
DEAN WITTER RETIREMENT SERIES TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997
DEAR SHAREHOLDER:
Despite continued volatility, the six-month period ended January 31, 1997, was
an impressive period for the stock market, with the Dow Jones Industrial Average
(DJIA) surpassing the 6800 mark. The Standard & Poor's 500 Composite Stock Index
(S&P 500) was also strong, advancing 24.16 percent. Large-capitalization stocks
outperformed small-cap stocks by a wide margin, with the Russell 2000 Index
trailing larger-cap indexes with a 17.97 percent gain in the period.
Interest rates on intermediate-term U.S. Treasury securities were highly
volatile during the period under review. In early 1996, interest rates rose as
economic data supported a perception that the economy had begun to accelerate.
Fueled by consumer demand and reinvigorated by low mortgage rates, rebates and
various incentives from auto dealers, retail sales and housing starts soared.
Declining inventories, combined with strong employment data, caused considerable
consternation about a quickly rebounding economy and a possible inflation surge.
By September, however, evidence of a moderating economy and a perception that
the Federal Reserve Board would not take immediate action to slow it up, enabled
interest rates to decline rather sharply and quickly. This sentiment was
short-lived as the economy again displayed signs of strength in December,
resulting in sharply rising interest rates.
LIQUID ASSET SERIES
As of January 31, 1997, the Liquid Asset Series had assets of approximately $20
million, with an average maturity of 27 days. The Series' annualized net yield
for the most recent six-month fiscal period was 4.48 percent, and its annualized
yield for January was 4.11 percent.
On January 31, 1997, approximately 83 percent of the Liquid Asset Series
consisted of high-quality commercial paper, with 6 percent invested in bankers'
acceptances issued by major, financially strong commercial banks, with the
remaining 11 percent invested in federal agency obligations. More than 93
percent of the Series' assets were due to mature in less than three months.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
The Series is well positioned for stability of value with a high degree of
liquidity. We continue to operate the Series in a straight-forward, conservative
style without "structured notes" or derivatives which could fluctuate
excessively when interest rates change.
At this time we anticipate a moderate pace for economic activity during the
first half of 1997, with no major adverse surprises in the rate of inflation.
Investment yields available in the money market during the next six months are
not expected to differ significantly from those available during the previous
six months.
U.S. GOVERNMENT MONEY MARKET SERIES
As of January 31, 1997, the U.S. Government Money Market Series had assets of
approximately $7 million, with an average maturity of 32 days. The Series'
annualized net yield for the most recent six-month fiscal period was 4.32
percent, and its annualized yield for January was 4.34 percent.
On January 31, 1997, approximately 97 percent of the U.S. Government Money
Market Series consisted of federal agency obligations, with the remaining 3
percent invested in U.S. Treasury bills. More than 91 percent of the Series'
assets were due to mature in less than three months.
The Series is well positioned for stability of value with a high degree of
liquidity. We continue to operate the Series in a straight-forward, conservative
style without "structured notes" or derivatives which could fluctuate
excessively when interest rates change.
At this time we anticipate a moderate pace for economic activity during the
first half of 1997, with no major adverse surprises in the rate of inflation.
Investment yields available in the money market during the next six months are
not expected to differ significantly from those available during the previous
six months.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
U.S. GOVERNMENT SECURITIES SERIES
For the six months ended January 31, 1997, the U.S. Government Securities Series
produced a total return of 4.68 percent compared to 4.41 percent for the Lipper
General U.S. Government Securities Funds Average. The Series' performance for
the six-month period was reflective of the volatile interest-rate environment.
On January 31, 1997, the Series' net assets exceeded $10 million. The Series'
portfolio continues to be well diversified, with approximately 73 percent of the
portfolio invested in Government National Mortgage Association mortgage-backed
securities (GNMAs), 20 percent in U.S. Treasury securities and 7 percent in
zero-coupon U.S. Treasuries. On January 31, 1997, the Series' average maturity
and average duration (a measure of the portfolio's sensitivity to changes in
interest rates) were approximately 8.8 years and 5.5 years, respectively.
Going forward, we believe that GNMAs continue to offer significant longer-term
value and, in the current investment environment, provide not only an
incremental yield incentive over U.S. Treasury securities of similar maturity
but also the potential for greater total return.
INTERMEDIATE INCOME SERIES
For the six-month period ended January 31, 1997, the Intermediate Income Series
produced a total return of 4.06 percent, compared to 4.69 percent for the Lipper
Intermediate Investment Grade Debt Average and 4.36 percent for the Lehman
Intermediate Government Corporate Bond Index. (The Lehman Index tracks both U.S.
government securities and corporate bonds with maturities of one to ten years.)
The Series underperformed its benchmarks because of its somewhat greater
commitment to U.S. Treasury securities during much of the six months, which
dramatically underperformed corporates, and its periodic holdings in money
market securities. Performance was further constrained by sizable cash flows
into the portfolio toward the end of October, as well as by flows out of the
portfolio in early January.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
At the time of the receipt of the cash from new subscriptions, intermediate
interest rates had already fallen by 30 to 35 basis points from the July 31
levels. Most of these funds were invested immediately in U.S. Treasuries with
maturities between four and seven years and in ten-year corporates. With cash
reserves at 10 percent of portfolio assets on October 31 and the market's
sentiment still positive, an additional investment was made in five- and
seven-year corporates. At the time of share redemptions in early January,
interest rates were slightly higher than those at the time of the earlier
purchases. In anticipation of future large cash swings, cash reserves were
maintained at more than 5 percent of the portfolio's investable assets.
During the last six months, the Series' assets grew by more than 10 percent.
With its assets continuing to grow, the Series has worked toward a goal of
greater diversification into corporate securities. On January 31, 1997, 39
percent of the Series' investable assets were concentrated in corporates, up
from just above 28 percent six months ago.
On January 31, 1997, the average maturity, including temporary reserves, was 5.5
years and the average duration was 4.29 years. The average quality rating was
AA3.
AMERICAN VALUE SERIES
For the six-month period ended January 31, 1997, the American Value Series
produced a total return of 22.41 percent compared to 21.01 percent for the
Lipper Growth Funds Average and 24.16 percent for the S&P 500. Through much of
the period, the Series took a defensive posture in an effort to preserve
capital, resulting in the Series' underperformance relative to the broad market.
The Series was positioned for slow economic growth through much of the period,
remaining equally weighted between steady growth stocks and cyclical ones.
However, during the spring and summer many economic indicators led us to believe
that corporate earnings would be flat to down for 1996. Economic growth began to
decelerate while wage
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
growth began to accelerate and raw material prices for energy and grain rose.
Thus, in midsummer we took, as it turned out, an overly defensive position with
the portfolio.
By fall it became apparent that productivity gains would enable earnings to be
respectable even in a slowing economic environment. As a result we have moved
away from a defensive posture and gone back to overweighting those sectors of
the market that should achieve relative earnings outperformance in a moderately
accelerating economy, based upon both near-term considerations and long-term
secular trends. The first of these sectors is technology, which currently
represents 22 percent of the portfolio. The developed and emerging markets are
investing heavily in technology for basic phone and wireless service and
computing capacity in order to compete globally. Our technology holdings are
concentrated in the PC-related and semiconductor-related industries. Individual
stock holdings include Intel Corp., Microsoft Corp., Seagate Technology, Inc.
and Dell Computer Corp.
The second emphasis relates to the aging baby boomers and their new focus on
saving for retirement, which should benefit the brokerage, life insurance and
banking industries. Holdings include SunAmerica Inc., a leader in annuities,
and, increasingly, banks like NationsBank Corp. that are building up their asset
management businesses and Citicorp, with its major global presence. Health-care
industries such as drugs, biotechnology and medical devices are also
beneficiaries of the aging of the baby boom generation. Holdings here include
Lilly (Eli) & Co., Centocor, Inc. and Guidant Corp.
Finally, earnings in industries that export goods to developing markets should
benefit from expected continued strong economic growth in those regions. Primary
industry beneficiaries include aerospace, oil equipment, agriculture related and
consumer goods. Examples include Boeing Co. (aerospace), Schlumberger, Ltd.
(oil-well equipment), Monsanto Co. (agriculture) and Avon Products, Inc.
(consumer goods).
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
Energy is slightly underweighted in this portfolio relative to the market, with
a concentration on drilling and oil service stocks. Positions began to be built
in the first quarter when it became clear that oil and gas companies were
entering a new phase of capital spending that would remain unabated in 1997,
even if oil prices went to $19 to $20 per barrel. Again, volume growth should
remain resilient, boosted by accelerating demand from developing countries
undergoing industrialization and an upgrading of their national standards of
living.
Looking ahead, we expect the world economy to continue to experience moderate
growth in 1997. Modest earnings growth of 8 percent or so and relatively stable
inflation should continue to drive the markets higher. We will continue to focus
the Series on the sectors expected to have relative earnings outperformance,
such as the technology, interest-sensitive, health-care and export-related
industries.
CAPITAL GROWTH SERIES
For the six months ended January 31, 1997, the Capital Growth Series produced a
total return of 18.36 percent, compared to 21.01 percent for the Lipper Growth
Funds Average and 24.16 percent for the S&P 500. With the Series' transformation
into a more classic type of growth fund, it was penalized as growth stocks fell
out of favor during the fourth calendar quarter of 1996, when concerns regarding
third-quarter earnings, the national election, and the 1997 economy all combined
to weigh heavily on growth-related issues. This period had a dampening effect
upon overall first half performance.
During the fourth quarter of 1996 the Capital Growth Series' screens were
relaxed in order to provide a larger universe from which to pick stocks for the
Series. The screens now state that companies must have: 1) rising revenues and
earnings in five out of the last eight years; 2) up revenues and earnings in the
last three years consecutively; and 3) anticipated future short- and long-term
revenue and earnings growth of at least twelve percent. The Series is now
managed on a much more active basis, it is more research-driven and is not run
purely on a
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
quantitative basis. Companies purchased for the Series are selected based on
prior strong track records, anticipated future revenue and earnings growth, and
attractive valuations.
The Series' net assets, which totaled more than $2.6 million as of January 31,
were spread among 59 stocks.
DIVIDEND GROWTH SERIES
For the six-month period ended January 31, 1997, the Dividend Growth Series
produced a total return of 18.70 percent, compared to 20.51 percent for the
Lipper Growth and Income Funds Average and 24.16 percent for the S&P 500.
As of January 31, 1997 net assets of the Series totaled approximately $87
million and the Series owned thirty-eight equity issues spread among thirty
different industry groups.
No new portfolio positions were established during the six-month period under
review. However, a spinoff from Tenneco, Inc. resulted in the receipt of shares
of Newport News Shipbuilding Inc. and El Paso Natural Gas Co. These shares were
sold prior to the end of the period.
UTILITIES SERIES
For the six-month period ended January 31, 1997, the Utilities Series produced a
total return of 11.19 percent compared to 13.15 percent for the Lipper Utilities
Funds Average.
The Utilities Series seeks to provide above-average current income and long-term
growth of capital by investing primarily in stocks and bonds of companies in the
public utilities and related industries. On January 31, 1997, 91 percent of the
Series' net assets were invested among the various sectors of the utilities
spectrum. The Series equity holdings were allocated among electric utilities (42
percent), telecommunications (29 percent), natural gas (18 percent) and water (2
percent). Further diversification of the Series is provided by employing foreign
securities that account for 4 percent of net assets and cash
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
equivalents account for 8 percent of net assets. Over the balance of fiscal
1997, the foreign securities allocation is expected to increase with a focus on
telecommunications.
The Series remains well positioned and structured to participate in the
opportunities that will continue to occur as restructuring, competition and
broad-based deregulation progress throughout the sectors of the utilities
industry.
VALUE-ADDED MARKET SERIES
For the six-month period ended January 31, 1997, the Value-Added Market Series
produced a total return of 19.12 percent, compared to 20.51 percent for the
Lipper Growth and Income Funds Average and 24.16 percent for the S&P 500.
The Series lagged the capitalization-weighted S&P 500 because, while the Series
invests in substantially all the stocks of the S&P 500, it weights all the
positions equally. Thus, the Series emphasizes smaller-to medium-cap companies
that have historically outperformed the larger caps over long time periods.
However, during the twelve-month period under review, the large-cap and
technology stocks (both areas in which the Series is underweighted relative to
the S&P 500) were market leaders.
Going forward, we believe that the tide may again turn in favor of smaller-cap
companies, as many relative valuation measures, such as price-to-book, dividend
yield and price-to-earnings, indicate that small-cap issues are undervalued
compared to large caps. In addition, the expected continued strong dollar will
reduce the relative earnings growth of large multinationals vis-a-vis small
companies.
GLOBAL EQUITY SERIES
For the six-month period ended January 31, 1997, the Global Equity Series
produced a total return of 8.11 percent, compared to 13.18 percent for the
Lipper Global Funds Average and 10.33 percent for the Morgan Stanley Capital
International World Index (MSCI World Index).
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
The investment climate for this six-month period provided a favorable backdrop
for global equity market performance. Most world markets responded positively to
the noninflationary growth environment and stable monetary policy by the world's
central banks. The MSCI World Index return was buoyed by a continued strong
performance by the U.S. equity market and powerful rallies in most European
stock markets.
The Series' underperformance relative to the Index reflected its year-long
overweighted position in Japanese equities. After years of subpar economic
growth, a soaring uncompetitive currency and low business confidence, 1996
appeared to be a transition year for Japan. Investors embraced the depreciating
yen, prospects for deregulation and a self-sustaining economic recovery.
However, selling pressure built throughout the year as the Japanese economy
slowed. The government lost credibility and the banks appeared more fragile. In
this scenario, the Japanese market fell 22.3 percent during the period under
review.
On a more positive note, the Hong Kong market raced ahead by 19.22 percent on
the heels of a benign U.S. interest-rate picture, a firming property market and
increased investor confidence related to a seamless transition back to mainland
China's rule on July 1, 1997. Latin American markets likewise performed well,
also benefiting from stable interest rates but more importantly as a result of a
resumption of economic growth in the region. The Brazilian and Mexican markets
rebounded 28.2 percent and 22.2 percent.
The Series remains broadly diversified by country and industry. At the period's
end, the Series was invested in 30 countries. The target allocation for the
Series is Europe--35 percent, the U.S.--25 percent, Japan--20 percent, emerging
Asia--12.5 percent, Latin America--6.5 percent and other--1 percent. The core
holdings include Cheung Kong Holdings Ltd. (Hong Kong, real estate), British
Telecom (UK, telecommunications), Honda Motor Co. (Japan, automotive), YPF S.A.
(Argentina, energy), Aegon NV (Netherlands, insurance) and Seagate Technology,
Inc. (U.S., computer peripherals).
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
STRATEGIST SERIES
For the six-month period ended January 31, 1997, the Strategist Series posted a
total return of 14.01 percent compared to 13.89 percent for the Lipper Flexible
Portfolio Funds Average. As a flexible portfolio the Series combines stocks,
bonds and cash in an effort to maximize total return and provide lower risk.
During the past year we made just one major asset allocation shift. We decreased
equities from approximately 80 percent to 50 percent of assets while we
increased bonds, from 16 to 38 percent and cash, from 4 to 10 percent. This move
was based on a combination of factors, including a deterioration in the number
of companies able to exceed earnings growth expectations, as well as attractive
competitive yields available in the bond market.
As 1996 drew to a close, the three variables that carry the greatest weight in
terms of determining our overall allocation strategy continued to favor the
overweighting of long-dated financial assets and the maintenance of low cash
levels. Both inflation (which continued to surprise on the moderate side) and
Federal Reserve policy (which continued neutral) failed to meet bearish
expectations throughout the year. Of greater concern were developments in
corporate earnings growth, which grew increasingly more inconsistent throughout
1996 and raised concerns over the long term sustainability of 15 percent-plus
earnings growth forecasts.
The Series' equity portfolio holds sector overweights that we feel offer
above-average earnings growth potential. Included among these are consumer
cyclicals (especially growth retailers), consumer staples (particularly
pharmaceuticals), aerospace and defense, technology and financials. At year-end
our five largest equity positions were Intel Corp., Dell Computer Corp.,
PacifiCare Health Systems, Inc., American Express Co. and Honeywell, Inc.
The fixed-income portfolio is primarily invested in U.S. Treasury issues.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1997, CONTINUED
We appreciate your support of Dean Witter Retirement Series and look forward to
continuing to serve your investment needs and objectives.
Very truly yours,
[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER RETIREMENT SERIES - LIQUID ASSET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF MATURITY
THOUSANDS PURCHASE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (92.4%)
AUTOMOTIVE - FINANCE (10.9%)
$ 800 Ford Motor Credit Co.............................. 5.34% 02/19/97 $ 797,876
1,400 General Motors Acceptance Corp.................... 5.40-5.41 02/14/97-03/11/97 1,395,806
-----------
2,193,682
-----------
BANK HOLDING COMPANIES (7.9%)
1,000 PNC Funding Corp.................................. 5.43 04/22/97 988,089
600 U.S. Bancorp...................................... 5.35 03/10/97 596,725
-----------
1,584,814
-----------
BANKS - COMMERCIAL (33.4%)
1,350 ABN-AMRO North America Finance Corp............... 5.45 03/06/97 1,343,317
300 Dresdner U.S. Finance Inc......................... 5.29 02/05/97 299,824
1,300 Internationale Nederlanden (U.S.) Funding Corp.... 5.34 02/07/97 1,298,847
1,450 National Australia Funding (DE) Inc............... 5.40-5.60 02/12/97-02/28/97 1,445,779
1,300 Toronto-Dominion Holdings USA Inc................. 5.41 05/02/97 1,282,710
1,000 Westpac Capital Corp.............................. 5.34 02/10/97 998,670
-----------
6,669,147
-----------
BROKERAGE (10.5%)
1,100 Goldman Sachs Group L.P........................... 5.36-5.40 02/05/97-02/06/97 1,099,287
1,000 Morgan Stanley Group, Inc......................... 5.32 02/18/97 997,497
-----------
2,096,784
-----------
FINANCE - CONSUMER (10.2%)
470 American Express Credit Corp...................... 5.35 03/24/97 466,471
1,000 Beneficial Corp................................... 5.34 03/10/97 994,553
575 Household Finance Corp............................ 5.42 03/07/97 572,084
-----------
2,033,108
-----------
FINANCE - DIVERSIFIED (6.5%)
1,300 General Electric Capital Corp..................... 5.36 02/10/97 1,298,268
-----------
FOODS & BEVERAGES (6.5%)
1,300 Heinz (H.J.) Co................................... 5.33 02/19/97 1,296,555
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - LIQUID ASSET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF MATURITY
THOUSANDS PURCHASE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDUSTRIALS (6.5%)
$1,300 Caterpillar Financial Services Corp............... 5.33% 02/10/97 $ 1,298,278
-----------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $18,470,636)..................................................... 18,470,636
-----------
U.S. GOVERNMENT AGENCY (11.9%)
2,375 Federal Home Loan Mortgage Corp. (Amortized Cost
$2,374,277)..................................... 5.48 02/03/97 2,374,277
-----------
BANKERS' ACCEPTANCES (6.8%)
176 First National Bank of Boston..................... 5.53 07/09/97 171,712
1,188 Mellon Bank, N.A.................................. 5.39 03/03/97 1,182,972
-----------
TOTAL BANKERS' ACCEPTANCES
(AMORTIZED COST $1,354,684)...................................................... 1,354,684
-----------
TOTAL INVESTMENTS
(AMORTIZED COST $22,199,597) (a).................................................. 111.1% 22,199,597
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.................................... (11.1) (2,215,085)
-------- -----------
NET ASSETS........................................................................ 100.0% $19,984,512
-------- -----------
-------- -----------
<FN>
- ---------------------
(a) Cost is the same for federal income tax purposes.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - U.S. GOVERNMENT MONEY MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF MATURITY
THOUSANDS PURCHASE DATE VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES (97.2%)
$ 2,625 Federal Farm Credit Bank.......... 5.24-5.36% 02/06/97-05/07/97 $ 2,611,748
1,670 Federal Home Loan Banks........... 5.25-5.43 02/04/97-03/20/97 1,663,571
1,825 Federal Home Loan Mortgage
Corp............................ 5.26-5.48 02/03/97-02/19/97 1,823,055
1,100 Student Loan Marketing
Association..................... 5.27-5.28 03/13/97-03/21/97 1,092,786
-------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $7,191,160)............................................... 7,191,160
-------------
U.S. GOVERNMENT OBLIGATION (2.6%)
200 U.S. Treasury Bill
(Amortized Cost $195,021)....... 5.40 07/24/97 195,021
-------------
TOTAL INVESTMENTS
(AMORTIZED COST $7,386,181) (a)............................................... 99.8% 7,386,181
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES................................ 0.2 11,690
-------- -----------
NET ASSETS.................................................................... 100.0% $ 7,397,871
-------- -----------
-------- -----------
<FN>
- ---------------------
(a) Cost is the same for federal income tax purposes.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS (99.8%)
Government National Mortgage Assoc. I
(63.4%)
$ 2,795 ................................... 7.00 % 06/15/23-11/15/25 $ 2,736,898
3,849 ................................... 7.50 01/15/24-01/15/27 3,856,985
--------------
6,593,883
--------------
996 Government National
Mortgage Assoc. II (9.4%) ......... 7.00 03/20/26 972,179
--------------
U.S. Treasury Notes (19.9%)
800 ................................... 6.375 09/30/01 803,440
300 ................................... 6.125 12/31/01 298,227
1,000 ................................... 5.875 02/15/04 970,610
--------------
2,072,277
--------------
800 U.S. Treasury Principal Strips
(7.1%) ............................ 0.00 08/15/98 732,616
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $10,427,490) (a)............................................ 99.8% 10,370,955
CASH AND OTHER ASSETS IN EXCESS OF LIABILITES................................ 0.2 23,207
-------- -----------
NET ASSETS................................................................... 100.0% $10,394,162
-------- -----------
-------- -----------
<FN>
- ---------------------
(a) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $79,434 and the
aggregate gross unrealized depreciation is $135,969, resulting in net
unrealized depreciation of $56,535.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (39.0%)
AUTOMOBILE - RENTALS (2.1%)
$ 100 Hertz Corp....................................... 6.00 % 01/15/03 $ 95,829
-------------
AUTOMOTIVE (0.4%)
20 Chrysler Corp.................................... 10.40 08/01/99 20,391
-------------
AUTOMOTIVE - FINANCE (0.6%)
25 General Motors Acceptance Corp................... 8.40 10/15/99 26,232
-------------
BANKS (8.1%)
150 ABN-AMRO Bank NV (Netherlands)................... 6.625 10/31/01 149,880
100 BankAmerica Corp................................. 6.20 02/15/06 94,046
100 Santander Financial Issuances (Cayman Islands)... 7.75 05/15/05 103,726
25 Star Bank N.A.................................... 6.375 03/01/04 24,082
-------------
371,734
-------------
BROKERAGE (2.2%)
100 Bear Stearns Companies, Inc...................... 6.75 08/15/00 100,469
-------------
FINANCIAL (5.4%)
250 CIT Group Holdings Inc........................... 6.25 11/22/01 245,457
-------------
FOREIGN GOVERNMENT (3.2%)
50 Republic of Indonesia............................ 7.75 08/01/06 50,721
100 State of Israel.................................. 6.375 12/15/05 94,476
-------------
145,197
-------------
HEALTHCARE (0.5%)
25 Columbia/HCA Healthcare Corp..................... 6.87 09/15/03 25,088
-------------
INDUSTRIALS (7.5%)
250 Comdisco, Inc.................................... 6.375 11/30/01 246,383
100 Millennium America Inc........................... 7.00 11/15/06 97,476
-------------
343,859
-------------
MANUFACTURING (1.0%)
50 Reebok International Ltd. (United Kingdom)....... 6.75 09/15/05 47,664
-------------
NATURAL GAS (5.4%)
250 El Paso Natural Gas Co........................... 6.75 11/15/03 247,528
-------------
PAPER & FOREST PRODUCTS (2.1%)
100 Noranda Forest, Inc. (Canada).................... 6.875 11/15/05 97,488
-------------
TEXTILES (0.5%)
25 Burlington Industries, Inc....................... 7.25 09/15/05 24,553
-------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $1,807,051)............................................ 1,791,489
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (53.1%)
$ 400 U.S. Treasury Note............................... 6.75 % 06/30/99 $ 406,612
600 U.S. Treasury Note............................... 5.75 10/31/00 591,504
100 U.S. Treasury Note............................... 6.375 09/30/01 100,430
650 U.S. Treasury Note............................... 6.25 02/15/03 647,134
650 U.S. Treasury Note............................... 7.50 02/15/05 691,690
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $2,461,957)............................................ 2,437,370
SHORT-TERM INVESTMENT (a) (5.5%)
U.S. GOVERNMENT AGENCY
250 Federal Home Loan Mortgage Corp. (Amortized Cost
$249,924)...................................... 5.48 02/03/97 249,924
-------------
TOTAL INVESTMENTS
(IDENTIFIED COST $4,518,932) (B).............................................. 97.6% 4,478,783
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES................................ 2.4 111,906
-------- -----------
NET ASSETS.................................................................... 100.0% $ 4,590,689
-------- -----------
-------- -----------
<FN>
- ---------------------
(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 approximates identified
cost. The aggregate gross unrealized appreciation is $6,739 and the
aggregate gross unrealized depreciation is $46,888, resulting in net
unrealized depreciation of $40,149.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (98.6%)
AGRICULTURE RELATED (4.5%)
7,000 Dekalb Genetics Corp. (Class B)....... $ 442,750
6,000 Delta & Pine Land Co.................. 224,250
12,000 Monsanto Co........................... 454,500
5,700 Pioneer Hi-Bred International, Inc.... 384,036
3,000 Potash Corp. of Saskatchewan, Inc.
(Canada)............................ 252,375
5,000 Tyson Foods, Inc. (Class A)........... 169,375
--------------
1,927,286
--------------
APPAREL & FOOTWEAR (0.3%)
4,000 Jones Apparel Group, Inc.*............ 137,000
--------------
AUTO RELATED (1.0%)
7,000 General Motors Corp................... 413,000
--------------
BANKS (7.3%)
7,500 Banc One Corp......................... 340,312
4,000 Bank of Boston Corp................... 285,000
4,000 BankAmerica Corp...................... 446,500
4,400 Chase Manhattan Corp.................. 407,000
4,500 Citicorp.............................. 523,687
3,500 First Chicago NBD Corp................ 199,937
5,000 Mellon Bank Corp...................... 373,125
3,900 NationsBank Corp...................... 421,200
3,300 Washington Mutual, Inc................ 179,025
--------------
3,175,786
--------------
BASIC CYCLICALS (2.9%)
3,000 Crown Cork & Seal Co., Inc............ 172,500
4,000 Du Pont (E.I.) de Nemours & Co.,
Inc................................. 438,500
2,000 Fuller (H.B.) Co...................... 99,500
10,000 RMI Titanium Co.*..................... 253,750
10,000 Titanium Metals Corp.*................ 290,000
--------------
1,254,250
--------------
BIOTECHNOLOGY (5.9%)
16,000 Alkermes, Inc.*....................... 366,000
8,200 Biochem Pharma, Inc.*................. 460,225
5,000 Biogen, Inc.*......................... 233,750
13,900 Centocor, Inc.*....................... 529,937
700 IDEC Pharmaceuticals Corp.*........... 16,187
6,500 Ligand Pharmaceuticals, Inc. (Class
B)*................................. 90,187
15,000 Pharmaceutical Product Development,
Inc.*............................... 427,500
8,500 Vertex Pharmaceuticals, Inc.*......... 416,500
--------------
2,540,286
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
CAPITAL GOODS (4.7%)
4,500 Boeing Co............................. $ 482,062
3,000 General Electric Co................... 309,000
6,000 Honeywell, Inc........................ 432,750
3,000 Rockwell International Corp........... 197,250
5,000 Sundstrand Corp....................... 214,375
5,500 United Technologies Corp.............. 383,625
--------------
2,019,062
--------------
COMMUNICATIONS EQUIPMENT (6.8%)
5,100 3Com Corp.*........................... 341,700
2,000 Adtran Inc.*.......................... 85,500
600 Advanced Fibre Communications,
Inc.*............................... 28,800
6,600 Andrew Corp.*......................... 377,850
3,000 Ascend Communications, Inc.*.......... 208,500
6,000 Cisco Systems, Inc.*.................. 417,750
12,000 Ericsson (L.M.) Telephone Co. AB (ADR)
(Sweden)............................ 403,500
5,000 Lucent Technologies, Inc.............. 271,250
10,000 Pairgain Technologies, Inc.*.......... 408,750
5,000 Tellabs, Inc.*........................ 205,625
3,000 U.S. Robotics Corp.*.................. 205,500
--------------
2,954,725
--------------
COMPUTER EQUIPMENT (5.3%)
7,000 Dell Computer Corp.*.................. 462,875
13,300 EMC Corp.*............................ 503,737
10,000 Quantum Corp.*........................ 380,000
10,000 Seagate Technology, Inc.*............. 515,000
6,000 Western Digital Corp.*................ 435,000
--------------
2,296,612
--------------
COMPUTER SERVICES (0.4%)
6,000 Keane, Inc.*.......................... 186,750
--------------
COMPUTER SOFTWARE (3.9%)
4,000 BMC Software, Inc.*................... 173,000
7,500 Microsoft Corp.*...................... 764,062
8,200 Peoplesoft, Inc.*..................... 440,750
3,900 Rational Software Corp.*.............. 97,988
4,000 Remedy Corp.*......................... 194,000
1,400 Select Software Tools Ltd. (ADR)
(United Kingdom)*................... 22,225
--------------
1,692,025
--------------
CONSTRUCTION (1.0%)
10,700 American Standard Co., Inc.*.......... 434,688
--------------
CONSUMER - NONCYCLICAL (3.3%)
6,000 Avon Products, Inc.................... 376,500
1,500 Clorox Co............................. 177,938
4,000 Colgate-Palmolive Co.................. 387,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
5,000 Panamerican Beverages, Inc. (Class A)
(Mexico)............................ $ 261,875
2,000 Procter & Gamble Co................... 231,000
--------------
1,434,313
--------------
CONSUMER BUSINESS SERVICES (1.3%)
4,000 Diebold, Inc.......................... 236,000
4,600 National Education Corp.*............. 69,575
8,200 Service Corp. International........... 237,800
--------------
543,375
--------------
CONSUMER PRODUCTS (2.1%)
5,000 CVS Corp.............................. 216,250
7,500 Kroger Co.*........................... 358,125
7,000 Safeway, Inc.*........................ 334,250
--------------
908,625
--------------
DRUGS (3.8%)
3,500 Bristol-Myers Squibb Co............... 444,500
8,500 Dura Pharmaceuticals, Inc.*........... 357,000
5,000 Lilly (Eli) & Co...................... 435,625
1,000 Medicis Pharmaceutical Corp. (Class
A)*................................. 62,750
4,000 Warner-Lambert Co..................... 322,000
--------------
1,621,875
--------------
ENERGY (8.0%)
3,000 Apache Corp........................... 115,125
9,000 Baker Hughes, Inc..................... 351,000
3,000 BJ Services Co.*...................... 138,750
5,800 Diamond Offshore Drilling, Inc.*...... 383,525
10,000 Global Marine Inc.*................... 223,750
5,600 Louisiana Land & Exploration Co....... 315,000
7,000 Marine Drilling Company, Inc.*........ 115,500
8,500 Reading & Bates Corp.*................ 247,563
6,000 Schlumberger, Ltd..................... 666,750
6,000 Smith International, Inc.*............ 273,000
6,000 Unocal Corp........................... 252,750
5,700 Western Atlas, Inc.*.................. 386,888
--------------
3,469,601
--------------
ENTERTAINMENT/GAMING & LODGING (1.6%)
6,000 International Game Technology......... 106,500
8,000 MGM Grand, Inc.*...................... 315,000
10,000 Mirage Resorts, Inc.*................. 251,250
--------------
672,750
--------------
FINANCIAL - MISCELLANEOUS (9.4%)
8,100 Alex Brown Inc........................ 429,300
7,000 American Express Co................... 436,625
5,400 Crescent Real Estate Equities, Inc.... 289,575
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
11,300 Edwards (A.G.), Inc................... $ 382,788
6,800 Federal Home Loan Mortgage Corp....... 205,700
800 Infinity Financial Technology,
Inc.*............................... 16,400
9,000 Lehman Brothers Holdings, Inc......... 284,625
10,000 MBNA Corp............................. 345,000
4,500 Merrill Lynch & Co., Inc.............. 379,125
5,500 Morgan Stanley Group, Inc............. 314,188
11,900 Paine Webber Group, Inc............... 415,013
4,000 PMI Group Inc......................... 209,000
6,800 Reliastar Financial Corp.............. 377,400
--------------
4,084,739
--------------
HEALTHCARE PRODUCTS & SERVICES (1.6%)
15,000 Health Management Associates, Inc.
(Class A)*.......................... 414,375
6,000 Healthsouth Corp.*.................... 261,750
--------------
676,125
--------------
INSURANCE (3.7%)
5,000 Allstate Corp......................... 328,750
8,868 Conseco, Inc.......................... 651,798
4,000 Exel Ltd. (Bermuda)................... 169,500
9,700 SunAmerica, Inc....................... 447,413
--------------
1,597,461
--------------
INTERNET (0.8%)
9,860 America Online, Inc.*................. 357,688
--------------
MEDIA GROUP (1.4%)
5,600 Clear Channel Communications, Inc.*... 238,700
9,000 Evergreen Media Corp. (Class A)*...... 279,000
1,900 Univision Communications Inc. (Class
A)*................................. 68,400
--------------
586,100
--------------
MEDICAL SUPPLIES (2.0%)
5,600 Boston Scientific Corp.*.............. 382,200
4,000 Guidant Corp.......................... 223,000
4,000 Medtronic, Inc........................ 274,000
--------------
879,200
--------------
RESTAURANTS (1.0%)
7,000 Boston Chicken, Inc.*................. 240,625
6,000 Starbucks Corp.*...................... 204,750
--------------
445,375
--------------
RETAIL (2.6%)
10,500 Costco Companies, Inc.*............... 278,250
8,400 Dayton-Hudson Corp.................... 316,050
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
4,000 Kohl's Corp.*......................... $ 155,500
3,600 Proffitt's, Inc.*..................... 129,600
4,000 Tiffany & Co.......................... 149,000
3,000 Williams-Sonoma Inc.*................. 94,500
--------------
1,122,900
--------------
SEMICONDUCTORS (11.1%)
12,000 Altera Corp.*......................... 516,000
13,333 Analog Devices, Inc.*................. 385,000
8,000 Applied Materials, Inc.*.............. 395,000
10,000 Atmel Corp.*.......................... 462,500
3,000 Intel Corp............................ 486,375
10,000 KLA Instruments Corp.*................ 426,250
8,200 Maxim Integrated Products, Inc.*...... 460,225
4,500 Microchip Technology, Inc.*........... 171,000
5,000 Novellus Systems, Inc.*............... 395,000
8,000 Tencor Instruments*................... 326,000
5,500 Texas Instruments Inc................. 431,063
6,000 Vitesse Semiconductor Corp.*.......... 327,000
--------------
4,781,413
--------------
TRANSPORTATION (0.9%)
10,500 OMI Corp.*............................ 110,250
3,000 PACCAR Inc............................ 195,750
3,000 Teekay Shipping Corp.................. 95,627
--------------
401,627
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $35,988,315)......... 42,614,637
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (2.9%)
U.S. GOVERNMENT AGENCY
$ 1,250 Federal Home Loan Mortgage Corp. 5.48%
due 02/03/97 (Amortized Cost
$1,249,619)......................... $ 1,249,619
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $37,237,934)
(B).......................... 101.5% 43,864,256
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS............. (1.5) (629,479)
----- -----------
NET ASSETS................... 100.0% $43,234,777
----- -----------
----- -----------
<FN>
- ---------------------
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 approximates identified
cost. The aggregate gross unrealized appreciation is $7,102,257 and the
aggregate gross unrealized depreciation is $475,935, resulting in net
unrealized appreciation of $6,626,322.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (89.8%)
ADVERTISING (0.8%)
450 Interpublic Group of Companies, Inc..... $ 22,219
-------------
APPAREL (0.7%)
350 Cintas Corp............................. 19,950
-------------
AUTO TRUCKS & PARTS (2.1%)
2,700 Miller Industries, Inc.*................ 54,675
-------------
BANKING (5.2%)
450 Fifth Third Bancorp..................... 34,819
600 State Street Boston Corp................ 43,875
1,100 Washington Mutual, Inc.................. 59,675
-------------
138,369
-------------
CHEMICALS - SPECIALTY (1.1%)
950 Sigma-Aldrich Corp...................... 30,163
-------------
COMMERCIAL SERVICES (1.7%)
1,700 Affiliated Computer Services, Inc.*..... 44,200
-------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (4.5%)
250 3Com Corp.*............................. 16,750
400 Cabletron Systems, Inc.*................ 13,900
700 Cisco Systems, Inc.*.................... 48,737
1,000 Tellabs, Inc.*.......................... 41,125
-------------
120,512
-------------
COMPUTER SERVICES (1.7%)
1,300 Sterling Commerce, Inc.*................ 44,037
-------------
COMPUTER SOFTWARE (6.6%)
1,400 Adaptec, Inc.*.......................... 60,900
600 Microsoft Corp.*........................ 61,125
900 Parametric Technology Corp.*............ 51,975
-------------
174,000
-------------
COMPUTERS - SYSTEMS (3.3%)
400 COMPAQ Computer Corp.*.................. 34,750
1,400 EMC Corp.*.............................. 53,025
-------------
87,775
-------------
CONSUMER BUSINESS SERVICES (2.3%)
1,250 Service Corp. International............. 36,250
700 Stewart Enterprises, Inc. (Class A)..... 24,675
-------------
60,925
-------------
DRUGS & HEALTHCARE (1.5%)
750 Abbott Laboratories..................... 40,781
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS (3.6%)
600 Dionex Corp.*........................... $ 24,300
650 Harman International Industries, Inc.... 30,144
900 Jabil Circuit, Inc.*.................... 42,075
-------------
96,519
-------------
ELECTRONICS - INSTRUMENTATION (1.8%)
900 Hewlett-Packard Co...................... 47,362
-------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (4.0%)
300 Analog Devices, Inc..................... 8,662
900 Atmel Corp.*............................ 41,625
350 Intel Corp.............................. 56,744
-------------
107,031
-------------
FINANCIAL - MISCELLANEOUS (11.9%)
1,200 Federal National Mortgage Assoc......... 47,400
1,100 Green Tree Financial Corp............... 42,762
500 Household International, Inc............ 49,562
1,600 MBNA Corp............................... 55,200
700 MGIC Investment Corp.................... 51,625
950 Primark Corp.*.......................... 26,600
950 SunAmerica, Inc......................... 43,819
-------------
316,968
-------------
HEALTHCARE - DIVERSIFIED (3.6%)
900 United Healthcare Corp.................. 43,875
1,800 Universal Health Services, Inc. (Class
B)*................................... 52,200
-------------
96,075
-------------
HOME ENTERTAINMENT (1.3%)
1,100 Electronic Arts, Inc.*.................. 34,925
-------------
HOTELS/MOTELS (1.7%)
650 HFS Inc.*............................... 45,500
-------------
HOUSEHOLD FURNISHINGS & APPLIANCES (0.5%)
300 Ethan Allen Interiors, Inc.............. 13,162
-------------
MEDIA (1.9%)
1,200 Clear Channel Communications, Inc.*..... 51,150
-------------
MEDICAL PRODUCTS & SUPPLIES (2.2%)
450 Boston Scientific Corp.*................ 30,712
400 Medtronic, Inc.......................... 27,400
-------------
58,112
-------------
MULTI-LINE INSURANCE (1.6%)
350 American International Group, Inc....... 42,394
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
OIL DRILLING & SERVICES (6.3%)
900 ENSCO International, Inc.*.............. $ 49,612
2,400 Pride Petroleum Services, Inc.*......... 53,400
1,200 Tidewater, Inc.......................... 56,400
350 Varco International, Inc.*.............. 9,319
-------------
168,731
-------------
PHARMACEUTICALS (1.3%)
600 Johnson & Johnson....................... 34,575
-------------
POLLUTION CONTROL (4.6%)
400 Republic Industries, Inc.*.............. 16,750
1,300 United Waste Systems, Inc.*............. 48,588
1,500 US Filter Corp.*........................ 57,563
-------------
122,901
-------------
RETAIL - DEPARTMENT STORES (1.8%)
1,550 Dollar General Corp..................... 48,050
-------------
RETAIL - DRUG STORES (1.7%)
1,100 Walgreen Co............................. 45,238
-------------
RETAIL - FOOD CHAINS (3.1%)
400 Kroger Co.*............................. 19,100
1,300 Safeway, Inc.*.......................... 62,075
-------------
81,175
-------------
RETAIL - SPECIALTY (3.6%)
2,500 General Nutrition Companies, Inc.*...... 44,688
2,500 Staples, Inc.*.......................... 51,250
-------------
95,938
-------------
UTILITIES - ELECTRIC (1.8%)
800 AES Corp.*.............................. 47,500
-------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $2,033,654)............ 2,390,912
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (6.6%)
U.S. GOVERNMENT AGENCY
$ 175 Federal Home Loan Mortgage Corp. 5.48%
due 02/03/97 (Amortized Cost
$174,947)............................. $ 174,947
-------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,208,601) (B).............. 96.4% 2,565,859
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES................................... 3.6 95,560
-------- -----------
NET ASSETS.................................... 100.0% $ 2,661,419
-------- -----------
-------- -----------
<FN>
- ---------------------
* 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 approximates identified
cost. The aggregate gross unrealized appreciation is $376,933 and the
aggregate gross unrealized depreciation is $19,675, resulting in net
unrealized appreciation of $357,258.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (98.6%)
AEROSPACE (2.7%)
51,000 Raytheon Co........................... $ 2,339,625
--------------
ALUMINUM (2.6%)
32,200 Aluminum Co. of America............... 2,221,800
--------------
AUTOMOTIVE (5.1%)
64,900 Chrysler Corp......................... 2,263,387
68,500 Ford Motor Co......................... 2,200,562
--------------
4,463,949
--------------
BANKS (2.6%)
21,000 NationsBank Corp...................... 2,268,000
--------------
BANKS - MONEY CENTER (2.8%)
21,400 BankAmerica Corp...................... 2,388,775
--------------
BEVERAGES - SOFT DRINKS (2.7%)
66,500 PepsiCo Inc........................... 2,319,187
--------------
CHEMICALS (5.3%)
21,000 Du Pont (E.I.) de Nemours & Co.,
Inc................................. 2,302,125
41,900 Eastman Chemical Co................... 2,288,787
--------------
4,590,912
--------------
COMPUTERS - SYSTEMS (2.6%)
14,600 International Business Machines
Corp................................ 2,295,850
--------------
CONGLOMERATES (5.3%)
27,400 Minnesota Mining & Manufacturing
Co.................................. 2,335,850
56,000 Tenneco, Inc.......................... 2,240,000
--------------
4,575,850
--------------
DRUGS (2.7%)
18,700 Bristol-Myers Squibb Co............... 2,374,900
--------------
DRUGS & HEALTHCARE (2.6%)
42,000 Abbott Laboratories................... 2,283,750
--------------
ELECTRIC - MAJOR (2.6%)
21,700 General Electric Co................... 2,235,100
--------------
ENERGY (2.5%)
31,600 Kerr-McGee Corp....................... 2,172,500
--------------
FOODS (5.2%)
59,000 Quaker Oats Company (The)............. 2,264,125
13,600 Unilever NV (ADR) (Netherlands)....... 2,237,200
--------------
4,501,325
--------------
MACHINERY - AGRICULTURAL (2.7%)
54,100 Deere & Co............................ 2,312,775
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
MANUFACTURING - DIVERSIFIED (2.7%)
32,500 Honeywell, Inc........................ $ 2,344,063
--------------
METALS - MISCELLANEOUS (2.6%)
32,400 Phelps Dodge Corp..................... 2,263,950
--------------
NATURAL GAS (2.6%)
55,000 Enron Corp............................ 2,268,750
--------------
OFFICE EQUIPMENT (2.7%)
40,700 Pitney Bowes, Inc..................... 2,345,338
--------------
OIL - DOMESTIC (5.1%)
25,800 Amoco Corp............................ 2,244,600
51,000 Ashland, Inc.......................... 2,199,375
--------------
4,443,975
--------------
OIL INTEGRATED - INTERNATIONAL (2.6%)
22,100 Exxon Corp............................ 2,290,113
--------------
PAPER & FOREST PRODUCTS (2.6%)
50,000 Weyerhaeuser Co....................... 2,275,000
--------------
PHOTOGRAPHY (2.6%)
25,700 Eastman Kodak Co...................... 2,229,475
--------------
RAILROADS (2.7%)
48,900 CSX Corp.............................. 2,371,650
--------------
RETAIL - DEPARTMENT STORES (2.5%)
48,900 May Department Stores Co.............. 2,176,050
--------------
RETAIL - FOOD CHAINS (2.6%)
54,300 American Stores Co.................... 2,280,600
--------------
STEEL (2.7%)
44,900 Timken Co............................. 2,312,350
--------------
TELECOMMUNICATIONS (5.2%)
34,000 Bell Atlantic Corp.................... 2,286,500
55,500 Sprint Corp........................... 2,261,625
--------------
4,548,125
--------------
TOBACCO (2.6%)
19,100 Philip Morris Companies, Inc.......... 2,270,513
--------------
UTILITIES - ELECTRIC (6.8%)
98,400 Houston Industries, Inc............... 2,226,300
65,500 New England Electric System........... 2,243,375
61,500 Pacific Gas & Electric Co............. 1,399,125
--------------
5,868,800
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $69,927,027)......... 85,633,050
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (1.8%)
U.S. GOVERNMENT AGENCY
$ 1,600 Federal Home Loan Mortgage Corp. 5.48%
due 02/03/97 (Amortized Cost
$1,599,513)......................... $ 1,599,513
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $71,526,540) (B).......... 100.4% 87,232,563
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS..................................... (0.4) (401,582)
-------- -----------
NET ASSETS................................. 100.0% $86,830,981
-------- -----------
-------- -----------
<FN>
- ---------------------
ADR American Depository Receipt.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $16,174,043 and the
aggregate gross unrealized depreciation is $468,020, resulting in net
unrealized appreciation of $15,706,023.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - UTILITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (91.0%)
NATURAL GAS (17.9%)
3,500 Enron Corp.............................. $ 144,375
5,500 MCN Corp................................ 178,062
5,000 Pacific Enterprises..................... 150,625
3,500 PanEnergy Corp.......................... 161,438
4,000 Questar Corp............................ 156,500
2,500 Sonat, Inc.............................. 133,125
3,000 Williams Companies, Inc................. 120,375
-------------
1,044,500
-------------
TELECOMMUNICATIONS (29.2%)
5,000 360 DEG. Communication Co.*............. 98,750
3,500 Alltel Corp............................. 112,438
2,000 AT&T Corp............................... 78,750
3,000 BellSouth Corp.......................... 133,125
4,000 Cable & Wireless PLC (ADR) (United
Kingdom).............................. 90,000
3,000 Century Telephone Enterprises, Inc...... 94,125
3,000 GTE Corp................................ 141,000
3,148 Lucent Technologies, Inc................ 170,779
5,000 MCI Communications Corp................. 175,000
2,125 NCR Corp.*.............................. 80,484
3,000 Sprint Corp............................. 122,250
3,000 Telephone & Data Systems, Inc........... 114,375
3,000 Vodafone Group PLC (ADR) (United
Kingdom).............................. 129,000
6,500 WorldCom, Inc.*......................... 163,313
-------------
1,703,389
-------------
UTILITIES - ELECTRIC (41.5%)
4,500 Central & South West Corp............... 113,625
4,000 CINergy Corp............................ 138,000
4,000 CMS Energy Corp......................... 134,000
4,000 DPL, Inc................................ 98,000
4,550 DQE, Inc................................ 130,244
6,000 Edison International.................... 128,250
5,000 Entergy Corp............................ 134,375
4,500 General Public Utilities Corp........... 150,750
3,000 Illinova Corp........................... 79,125
3,500 NIPSCO Industries, Inc.................. 136,500
3,500 Northwestern Public Service Co.......... 132,563
6,000 PacifiCorp.............................. 127,500
4,000 Peco Energy Co.......................... 92,000
5,000 Pinnacle West Capital Corp.............. 158,125
4,000 Public Service Company of Colorado...... 156,000
7,000 Public Service Company of New Mexico.... 140,000
5,500 Teco Energy, Inc........................ 133,375
4,000 Utilicorp United, Inc................... 110,500
4,000 Western Resources, Inc.................. 122,500
-------------
2,415,432
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
WATER (2.4%)
6,000 American Water Works Company, Inc....... $ 139,500
-------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $4,306,891)............ 5,302,821
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- -------------
<C> <S> <C>
CORPORATE BOND (0.8%)
TELECOMMUNICATIONS
$ 50 Southwestern Bell Telephone Co. 7.25%
due 07/15/25 (Identified Cost
$51,438).............................. 47,526
-------------
SHORT-TERM INVESTMENTS (7.6%)
U.S. GOVERNMENT AGENCY (a) (5.9%)
340 Federal Home Loan Mortgage Corp. 5.48%
due 02/03/97 (Amortized Cost
$339,896)............................. 339,896
-------------
REPURCHASE AGREEMENT (1.7%)
101 The Bank of New York 5.25% due 02/03/97
(dated 01/31/97; proceeds $101,022;
collateralized by $102,221 U.S.
Treasury Note 5.375% due 11/30/97
valued at $102,997) (Identified Cost
$100,977)............................. 100,977
-------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $440,873).............. 440,873
-------------
TOTAL INVESTMENTS
(IDENTIFIED COST $4,799,202) (B).............. 99.4% 5,791,220
OTHER ASSETS IN EXCESS OF LIABILITIES......... 0.6 33,757
-------- -----------
NET ASSETS.................................... 100.0% $ 5,824,977
-------- -----------
-------- -----------
<FN>
- ---------------------
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 approximates identified
cost. The aggregate gross unrealized appreciation is $1,031,873 and the
aggregate gross unrealized depreciation is $39,855, resulting in net
unrealized appreciation of $992,018.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (98.2%)
AEROSPACE & DEFENSE (1.0%)
375 Boeing Co.............................. $ 40,172
550 General Dynamics Corp.................. 38,844
450 Lockheed Martin Corp................... 41,400
550 McDonnell Douglas Corp................. 36,987
500 Northrop Grumman Corp.................. 39,062
--------------
196,465
--------------
AGRICULTURE RELATED (0.2%)
500 Pioneer Hi-Bred International, Inc..... 33,687
--------------
AIR FREIGHT (0.2%)
800 Federal Express Corp.*................. 41,000
--------------
AIRLINES (0.8%)
450 AMR Corp.*............................. 36,225
450 Delta Air Lines, Inc................... 35,550
1,550 Southwest Airlines Co.................. 34,100
1,800 USAir Group, Inc.*..................... 37,575
--------------
143,450
--------------
ALUMINUM (0.6%)
1,000 Alcan Aluminium Ltd. (Canada).......... 35,250
600 Aluminum Co. of America................ 41,400
550 Reynolds Metals Co..................... 33,206
--------------
109,856
--------------
AUTO PARTS - AFTER MARKET (1.6%)
1,850 Cooper Tire & Rubber Co................ 37,462
1,150 Dana Corp.............................. 37,519
1,250 Echlin, Inc............................ 37,656
850 Genuine Parts Co....................... 37,506
750 Goodyear Tire & Rubber Co.............. 40,875
1,500 ITT Industries, Inc.................... 37,875
1,000 Snap-On, Inc........................... 37,250
800 TRW, Inc............................... 40,600
--------------
306,743
--------------
AUTO TRUCKS & PARTS (0.6%)
800 Cummins Engine Co., Inc................ 42,100
3,300 Navistar International Corp.*.......... 33,000
650 PACCAR Inc............................. 42,412
--------------
117,512
--------------
AUTOMOBILES (0.6%)
1,100 Chrysler Corp.......................... 38,362
1,100 Ford Motor Co.......................... 35,337
600 General Motors Corp.................... 35,400
--------------
109,099
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
BANKS - MONEY CENTER (1.2%)
350 BankAmerica Corp....................... $ 39,069
450 Bankers Trust New York Corp............ 38,250
400 Chase Manhattan Corp................... 37,000
350 Citicorp............................... 40,731
650 First Chicago NBD Corp................. 37,131
400 Morgan (J.P.) & Co., Inc............... 41,200
--------------
233,381
--------------
BANKS - REGIONAL (4.1%)
750 Banc One Corp.......................... 34,031
550 Bank of Boston Corp.................... 39,187
1,100 Bank of New York Co., Inc.............. 40,287
900 Barnett Banks, Inc..................... 39,600
600 Comerica, Inc.......................... 34,275
700 Corestates Financial Corp.............. 34,825
550 Fifth Third Bancorp.................... 42,556
550 First Bank System, Inc................. 41,800
450 First Union Corp....................... 37,631
700 Fleet Financial Group, Inc............. 37,800
700 KeyCorp................................ 36,662
550 Mellon Bank Corp....................... 41,044
750 National City Corp..................... 34,031
350 NationsBank Corp....................... 37,800
750 Norwest Corp........................... 35,719
900 PNC Bank Corp.......................... 35,775
450 Republic New York Corp................. 39,881
700 SunTrust Banks, Inc.................... 35,000
850 U.S. Bancorp........................... 38,675
600 Wachovia Corp.......................... 34,575
110 Wells Fargo & Co....................... 33,522
--------------
784,676
--------------
BEVERAGES - ALCOHOLIC (0.8%)
850 Anheuser-Busch Companies, Inc.......... 36,125
800 Brown-Forman Corp. (Class B)........... 35,200
2,150 Coors (Adolph) Co...................... 39,506
900 Seagram Co. Ltd. (Canada).............. 35,662
--------------
146,493
--------------
BEVERAGES - SOFT DRINKS (0.6%)
650 Coca Cola Co........................... 37,619
1,150 PepsiCo Inc............................ 40,106
1,700 Whitman Corp........................... 39,100
--------------
116,825
--------------
BIOTECHNOLOGY (0.2%)
600 Amgen Inc.*............................ 33,825
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
BROADCAST MEDIA (0.6%)
2,200 Comcast Corp. (Class A Special)........ $ 40,425
2,500 Tele-Communications, Inc. (Class A)*... 33,125
1,900 U.S. West Media Group*................. 35,387
--------------
108,937
--------------
BUILDING MATERIALS (0.8%)
500 Armstrong World Industries Inc......... 35,500
1,000 Masco Corp............................. 34,500
800 Owens-Corning Fiberglas Corp........... 37,200
650 Sherwin-Williams Co.................... 36,075
--------------
143,275
--------------
BUSINESS SERVICES (0.2%)
1,200 Cognizant Corp.*....................... 38,550
--------------
CHEMICALS (1.5%)
550 Air Products & Chemicals, Inc.......... 39,256
450 Dow Chemical Co........................ 34,706
350 Du Pont (E.I.) de Nemours & Co.,
Inc.................................. 38,369
650 Eastman Chemical Co.................... 35,506
900 Monsanto Co............................ 34,087
700 Praxair, Inc........................... 32,462
450 Rohm & Haas Co......................... 36,900
750 Union Carbide Corp..................... 34,031
--------------
285,317
--------------
CHEMICALS - DIVERSIFIED (1.2%)
1,100 Avery Dennison Corp.................... 40,287
1,800 Engelhard Corp......................... 35,775
550 FMC Corp.*............................. 38,569
950 Goodrich (B.F.) Co..................... 38,950
950 Morton International, Inc.............. 38,594
700 PPG Industries, Inc.................... 37,450
--------------
229,625
--------------
CHEMICALS - SPECIALTY (1.3%)
1,000 Ecolab, Inc............................ 37,000
750 Grace (W. R.) & Co..................... 37,312
850 Great Lakes Chemical Corp.............. 36,656
850 Hercules, Inc.......................... 37,506
800 International Flavors & Fragrances
Inc.................................. 35,500
1,050 Nalco Chemical Co...................... 37,275
1,200 Sigma-Aldrich Corp..................... 38,100
--------------
259,349
--------------
COMMUNICATIONS - EQUIPMENT/MANUFACTURERS (1.2%)
650 Andrew Corp.*.......................... 37,212
1,650 DSC Communications Corp.*.............. 36,919
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
1,600 General Instrument Corp.*.............. $ 39,800
550 Northern Telecom Ltd. (Canada)......... 40,494
2,300 Scientific-Atlanta, Inc................ 43,700
800 Tellabs, Inc.*......................... 32,900
--------------
231,025
--------------
COMMUNICATIONS EQUIPMENT (0.6%)
500 Harris Corp............................ 38,062
650 Lucent Technologies, Inc............... 35,262
550 Motorola, Inc.......................... 37,537
--------------
110,861
--------------
COMPUTER SOFTWARE & SERVICES (2.6%)
550 3Com Corp.*............................ 36,850
1,200 Autodesk, Inc.......................... 37,800
900 Automatic Data Processing, Inc......... 37,237
1,750 Bay Networks, Inc.*.................... 38,062
1,100 Cabletron Systems, Inc.*............... 38,225
1,000 Ceridian Corp.*........................ 37,750
600 Cisco Systems, Inc.*................... 41,775
850 Computer Associates International,
Inc.................................. 38,569
500 Computer Sciences Corp.*............... 35,375
400 Microsoft Corp.*....................... 40,750
3,500 Novell, Inc.*.......................... 44,187
1,000 Oracle Corp.*.......................... 38,750
5,000 Unisys Corp.*.......................... 34,375
--------------
499,705
--------------
COMPUTERS - PERIPHERAL EQUIPMENT (0.4%)
1,050 EMC Corp.*............................. 39,769
800 Seagate Technology, Inc.*.............. 41,200
--------------
80,969
--------------
COMPUTERS - SYSTEMS (2.6%)
3,200 Amdahl Corp.*.......................... 36,800
2,100 Apple Computer, Inc.*.................. 34,650
500 COMPAQ Computer Corp.*................. 43,437
2,050 Data General Corp.*.................... 38,694
600 Dell Computer Corp.*................... 39,675
1,100 Digital Equipment Corp.*............... 41,250
700 Hewlett-Packard Co..................... 36,837
4,200 Intergraph Corp.*...................... 33,600
250 International Business Machines
Corp................................. 39,312
800 Shared Medical Systems Corp............ 37,600
1,400 Silicon Graphics, Inc.*................ 38,325
1,100 Sun Microsystems, Inc.*................ 34,787
2,550 Tandem Computers Inc.*................. 35,381
--------------
490,348
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
CONTAINERS - METAL & GLASS (0.4%)
1,400 Ball Corp.............................. $ 35,875
650 Crown Cork & Seal Co., Inc............. 37,375
--------------
73,250
--------------
CONTAINERS - PAPER (0.7%)
900 Bemis Company, Inc..................... 36,787
2,700 Stone Container Corp................... 36,450
600 Temple-Inland Inc...................... 33,150
700 Union Camp Corp........................ 33,162
--------------
139,549
--------------
COSMETICS (0.6%)
700 Alberto-Culver Co. (Class B)........... 36,487
600 Avon Products, Inc..................... 37,650
450 Gillette Co............................ 36,675
--------------
110,812
--------------
DATA PROCESSING (0.2%)
1,000 First Data Corp........................ 36,000
--------------
DISTRIBUTORS - CONSUMER PRODUCTS (0.6%)
1,750 Fleming Cos., Inc...................... 28,219
1,300 SuperValu Stores, Inc.................. 40,137
1,150 Sysco Corp............................. 37,806
--------------
106,162
--------------
ELECTRICAL EQUIPMENT (1.8%)
1,000 AMP, Inc............................... 40,750
350 Emerson Electric Co.................... 34,562
350 General Electric Co.................... 36,050
750 General Signal Corp.................... 33,937
550 Honeywell, Inc......................... 39,669
450 Raychem Corp........................... 38,981
600 Rockwell International Corp.*.......... 39,450
800 Thomas & Betts Corp.................... 37,500
1,950 Westinghouse Electric Corp............. 35,831
--------------
336,730
--------------
ELECTRONIC COMPONENTS (0.2%)
500 Grainger (W.W.), Inc................... 38,625
--------------
ELECTRONICS - DEFENSE (0.2%)
850 Raytheon Co............................ 38,994
--------------
ELECTRONICS - INSTRUMENTATION (0.6%)
1,900 EG & G, Inc............................ 40,375
550 Perkin-Elmer Corp...................... 38,431
850 Tektronix, Inc......................... 42,181
--------------
120,987
--------------
ELECTRONICS - SEMICONDUCTORS (1.3%)
1,250 Advanced Micro Devices, Inc.*.......... 43,750
250 Intel Corp............................. 40,531
1,200 LSI Logic Corp.*....................... 41,700
1,200 Micron Technology, Inc................. 41,700
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
1,500 National Semiconductor Corp.*.......... $ 41,625
550 Texas Instruments Inc.................. 43,106
--------------
252,412
--------------
ENGINEERING & CONSTRUCTION (0.6%)
550 Fluor Corp............................. 39,119
950 Foster Wheeler Corp.................... 36,694
1,850 McDermott International, Inc........... 33,762
--------------
109,575
--------------
ENTERTAINMENT (0.7%)
900 King World Productions Inc.*........... 35,212
850 Time Warner, Inc....................... 32,725
1,050 Viacom, Inc. (Class B)*................ 35,962
500 Walt Disney Co......................... 36,625
--------------
140,524
--------------
ENTERTAINMENT, GAMING & LODGING (0.2%)
2,000 Harrah's Entertainment, Inc.*.......... 39,000
--------------
FINANCE - CONSUMER (0.8%)
600 Beneficial Corp........................ 40,350
1,000 Green Tree Financial Corp.............. 38,875
350 Household International, Inc........... 34,694
1,150 MBNA Corp.............................. 39,675
--------------
153,594
--------------
FINANCE - DIVERSIFIED (1.6%)
650 American Express Co.................... 40,544
900 American General Corp.................. 35,887
1,100 Dean Witter, Discover & Co. (Note 3)... 41,937
1,200 Federal Home Loan Mortgage Corp........ 36,300
900 Federal National Mortgage Assoc........ 35,550
400 MBIA Inc............................... 38,450
450 MGIC Investment Corp................... 33,187
500 Transamerica Corp...................... 41,125
--------------
302,980
--------------
FOODS (2.5%)
1,700 Archer-Daniels-Midland Co.............. 33,575
400 Campbell Soup Co....................... 33,200
700 ConAgra, Inc........................... 35,350
500 CPC International Inc.................. 38,437
550 General Mills, Inc..................... 37,262
900 Heinz (H.J.) Co........................ 36,225
850 Hershey Foods Corp..................... 35,912
500 Kellogg Co............................. 34,812
900 Quaker Oats Company (The).............. 34,537
550 Ralston-Ralston Purina Group........... 43,244
900 Sara Lee Corp.......................... 35,550
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
200 Unilever NV (ADR) (Netherlands)........ $ 32,900
600 Wrigley (Wm.) Jr. Co. (Class A)........ 34,875
--------------
465,879
--------------
HARDWARE & TOOLS (0.4%)
1,200 Black & Decker Corp.................... 40,200
1,100 Stanley Works.......................... 41,800
--------------
82,000
--------------
HEALTHCARE - DIVERSIFIED (1.6%)
650 Abbott Laboratories.................... 35,344
1,050 Allergan, Inc.......................... 37,144
600 American Home Products Corp............ 38,025
300 Bristol-Myers Squibb Co................ 38,100
900 Healthsouth Corp.*..................... 39,262
700 Johnson & Johnson...................... 40,337
900 Mallinckrodt Group, Inc................ 36,900
500 Warner-Lambert Co...................... 40,250
--------------
305,362
--------------
HEALTHCARE - DRUGS (1.0%)
450 Lilly (Eli) & Co....................... 39,206
450 Merck & Co., Inc....................... 40,837
400 Pfizer, Inc............................ 37,150
900 Pharmacia & Upjohn, Inc................ 33,525
500 Schering-Plough Corp................... 37,812
--------------
188,530
--------------
HEALTHCARE - MISCELLANEOUS (0.4%)
2,900 Beverly Enterprises, Inc.*............. 42,050
1,500 Manor Care, Inc........................ 38,250
--------------
80,300
--------------
HEALTHCARE HMOS (0.4%)
2,050 Humana, Inc.*.......................... 38,950
850 United Healthcare Corp................. 41,437
--------------
80,387
--------------
HEALTHCARE SERVICES (0.2%)
1,450 Alza Corp.*............................ 41,869
--------------
HOME BUILDING (0.8%)
1,000 Centex Corp............................ 39,000
1,450 Fleetwood Enterprises, Inc............. 38,787
2,700 Kaufman & Broad Home Corp.............. 38,137
1,200 Pulte Corp............................. 39,750
--------------
155,674
--------------
HOSPITAL MANAGEMENT (0.4%)
950 Columbia/HCA Healthcare Corp........... 37,525
1,600 Tenet Healthcare Corp.*................ 43,200
--------------
80,725
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
HOTELS/MOTELS (0.9%)
500 HFS Inc.*.............................. $ 35,000
1,400 Hilton Hotels Corp..................... 39,900
750 ITT Corp.*............................. 42,844
750 Marriot International, Inc............. 39,844
--------------
157,588
--------------
HOUSEHOLD FURNISHINGS & APPLIANCES (0.4%)
1,900 Maytag Corp............................ 38,950
700 Whirlpool Corp......................... 35,612
--------------
74,562
--------------
HOUSEHOLD PRODUCTS (0.8%)
340 Clorox Co.............................. 40,332
350 Colgate-Palmolive Co................... 33,862
350 Kimberly Clark Corp.................... 34,125
300 Procter & Gamble Co.................... 34,650
--------------
142,969
--------------
HOUSEWARES (0.6%)
1,200 Newell Co.............................. 39,600
1,450 Rubbermaid, Inc........................ 33,531
700 Tupperware Corp........................ 32,812
--------------
105,943
--------------
INSURANCE BROKERS (0.4%)
550 Aon Corp............................... 35,544
350 Marsh & McLennan Cos., Inc............. 37,712
--------------
73,256
--------------
INVESTMENT BANKING/BROKERAGE (0.6%)
450 Merrill Lynch & Co., Inc............... 37,912
700 Morgan Stanley Group, Inc.............. 39,987
750 Salomon, Inc........................... 41,438
--------------
119,337
--------------
LEISURE TIME (0.2%)
1,350 Brunswick Corp......................... 33,919
--------------
LIFE INSURANCE (1.4%)
500 Aetna Inc.............................. 39,500
500 Conseco, Inc........................... 36,750
600 Jefferson-Pilot Corp................... 35,400
700 Providian Corp......................... 37,713
700 Torchmark Corp......................... 36,225
550 UNUM Corp.............................. 41,594
1,000 USLife Corp............................ 41,000
--------------
268,182
--------------
MACHINE TOOLS (0.2%)
2,750 Giddings & Lewis, Inc.................. 35,750
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
MACHINERY - DIVERSIFIED (2.3%)
800 Briggs & Stratton Corp................. $ 36,100
650 Case Corp.............................. 34,450
500 Caterpillar, Inc....................... 38,813
1,700 Cincinnati Milacron, Inc............... 39,100
800 Cooper Industries, Inc................. 34,500
800 Deere & Co............................. 34,200
700 Dover Corp............................. 34,650
800 Harnischfeger Industries, Inc.......... 35,500
800 Ingersoll-Rand Co...................... 36,500
650 NACCO Industries, Inc. (Class A)....... 34,044
1,000 Thermo Electron Corp.*................. 34,125
800 Timken Co.............................. 41,200
--------------
433,182
--------------
MANUFACTURING - DIVERSIFIED (3.1%)
500 AlliedSignal, Inc...................... 35,125
1,000 Corning, Inc........................... 35,625
1,350 Crane Co............................... 44,550
550 Eaton Corp............................. 38,500
450 Illinois Tool Works Inc................ 36,731
450 Johnson Controls, Inc.................. 38,700
900 Millipore Corp......................... 38,475
450 Minnesota Mining & Manufacturing Co.... 38,363
900 National Service Industries, Inc....... 34,538
1,700 Pall Corp.............................. 38,038
900 Parker-Hannifin Corp................... 38,813
800 Tenneco, Inc........................... 32,000
350 Textron Inc............................ 34,081
1,000 Trinova Corp........................... 38,500
700 Tyco International Ltd................. 39,988
500 United Technologies Corp............... 34,875
--------------
596,902
--------------
MEDICAL PRODUCTS & SUPPLIES (2.0%)
1,400 Bard (C.R.), Inc....................... 39,550
1,000 Bausch & Lomb, Inc..................... 33,875
800 Baxter International, Inc.............. 36,900
700 Becton, Dickinson & Co................. 34,475
2,500 Biomet, Inc............................ 38,750
550 Boston Scientific Corp.*............... 37,538
650 Guidant Corp........................... 36,238
500 Medtronic, Inc......................... 34,250
1,000 St. Jude Medical, Inc.*................ 37,875
1,000 United States Surgical Corp............ 40,125
--------------
369,576
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
METALS & MINING (1.7%)
1,350 ASARCO, Inc............................ $ 37,125
1,450 Barrick Gold Corp. (Canada)............ 38,969
5,200 Battle Mountain Gold Co................ 33,800
1,450 Cyprus Amax Minerals Co................ 32,444
5,800 Echo Bay Mines Ltd. (Canada)........... 37,338
2,350 Homestake Mining Co.................... 33,194
950 Newmont Mining Corp.................... 37,881
1,750 Placer Dome Inc. (Canada).............. 35,656
2,500 Santa Fe Pacific Gold Corp............. 38,438
--------------
324,845
--------------
METALS - MISCELLANEOUS (0.6%)
1,200 Freeport-McMoran Copper & Gold, Inc.
(Class B)............................ 34,500
1,150 Inco Ltd. (Canada)..................... 38,956
500 Phelps Dodge Corp...................... 34,938
--------------
108,394
--------------
MISCELLANEOUS (0.4%)
1,350 American Greetings Corp. (Class A)..... 37,969
1,800 Jostens, Inc........................... 37,125
--------------
75,094
--------------
MULTI-LINE INSURANCE (1.2%)
300 American International Group, Inc...... 36,338
250 CIGNA Corp............................. 37,906
550 ITT Hartford Group, Inc................ 40,356
650 Lincoln National Corp.................. 34,856
400 Loews Corp............................. 39,550
800 Travelers Group, Inc................... 41,900
--------------
230,906
--------------
OFFICE EQUIPMENT & SUPPLIES (0.6%)
850 Ikon Office Solutions, Inc............. 37,506
1,700 Moore Corp. Ltd. (Canada).............. 35,275
600 Pitney Bowes, Inc...................... 34,575
--------------
107,356
--------------
OIL & GAS DRILLING (1.4%)
950 Baker Hughes, Inc...................... 37,050
1,050 Dresser Industries, Inc................ 35,569
550 Halliburton Co......................... 39,806
700 Helmerich & Payne, Inc................. 33,863
1,600 Rowan Cos., Inc.*...................... 40,400
350 Schlumberger, Ltd...................... 38,894
500 Western Atlas, Inc.*................... 33,938
--------------
259,520
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
OIL & GAS EXPLORATION (1.2%)
700 Burlington Resources, Inc.............. $ 34,825
500 Kerr-McGee Corp........................ 34,375
680 Louisiana Land & Exploration Co........ 38,250
1,700 Oryx Energy Co.*....................... 41,225
2,650 Santa Fe Energy Resources, Inc.*....... 39,419
1,150 Union Pacific Resources Group, Inc..... 32,631
--------------
220,725
--------------
OIL - DOMESTIC INTEGRATED (1.7%)
650 Amerada Hess Corp...................... 38,350
900 Ashland, Inc........................... 38,813
250 Atlantic Richfield Co.................. 33,063
1,350 Occidental Petroleum Corp.............. 34,425
650 Pennzoil Co............................ 40,544
800 Phillips Petroleum Co.................. 35,300
1,300 Sun Co., Inc........................... 34,288
850 Unocal Corp............................ 35,806
1,450 USX-Marathon Group..................... 38,606
--------------
329,195
--------------
OIL - INTERNATIONAL INTEGRATED (1.1%)
400 Amoco Corp............................. 34,800
550 Chevron Corp........................... 36,506
350 Exxon Corp............................. 36,269
300 Mobil Corp............................. 39,375
200 Royal Dutch Petroleum Co.
(Netherlands)........................ 34,700
350 Texaco, Inc............................ 37,056
--------------
218,706
--------------
PAPER & FOREST PRODUCTS (2.1%)
1,000 Boise Cascade Corp..................... 34,500
800 Champion International Corp............ 33,500
500 Georgia-Pacific Corp................... 36,813
900 International Paper Co................. 36,788
1,100 James River Corp. of Virginia.......... 35,338
1,800 Louisiana-Pacific Corp................. 37,350
600 Mead Corp.............................. 33,750
900 Potlatch Corp.......................... 38,250
1,200 Westvaco Corp.......................... 35,100
800 Weyerhaeuser Co........................ 36,400
550 Willamette Industries, Inc............. 34,581
--------------
392,370
--------------
PHOTOGRAPHY/IMAGING (0.6%)
400 Eastman Kodak Co....................... 34,700
850 Polaroid Corp.......................... 37,400
700 Xerox Corp............................. 41,038
--------------
113,138
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
PROPERTY - CASUALTY INSURANCE (1.2%)
600 Allstate Corp.......................... $ 39,450
700 Chubb Corp............................. 38,150
250 General Re Corp........................ 40,375
900 SAFECO Corp............................ 34,088
600 St. Paul Companies, Inc................ 37,500
1,800 USF&G Corp............................. 38,025
--------------
227,588
--------------
PUBLISHING (0.9%)
950 Dow Jones & Co., Inc................... 37,644
1,500 Dun & Bradstreet Corp.................. 36,000
700 McGraw-Hill, Inc....................... 34,825
650 Meredith Corp.......................... 33,394
700 Times Mirror Co. (Class A)............. 33,075
--------------
174,938
--------------
PUBLISHING - NEWSPAPER (0.8%)
450 Gannett Co., Inc....................... 34,481
900 Knight-Ridder Newspapers, Inc.......... 34,538
950 New York Times Co. (Class A)........... 36,456
1,050 Tribune Co............................. 40,163
--------------
145,638
--------------
RAILROADS (1.0%)
450 Burlington Northern Santa Fe Corp...... 39,375
400 Conrail, Inc........................... 42,900
750 CSX Corp............................... 36,375
450 Norfolk Southern Corp.................. 39,881
550 Union Pacific Corp..................... 33,000
--------------
191,531
--------------
RESTAURANTS (0.6%)
5,000 Darden Restaurants, Inc................ 36,250
750 McDonald's Corp........................ 34,125
1,750 Wendy's International, Inc............. 38,500
--------------
108,875
--------------
RETAIL - DEPARTMENT STORES (1.4%)
1,200 Dillard Department Stores, Inc. (Class
A)................................... 35,850
1,200 Federated Department Stores, Inc.*..... 39,450
850 Harcourt General, Inc.................. 38,463
850 May Department Stores Co............... 37,825
750 Mercantile Stores Co., Inc............. 36,750
900 Nordstrom, Inc......................... 33,413
800 Penney (J.C.) Co., Inc................. 37,900
--------------
259,651
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
RETAIL - DRUG STORES (0.8%)
850 CVS Corp.*............................. $ 36,763
1,500 Longs Drug Stores Corp................. 36,375
900 Rite Aid Corp.......................... 36,000
900 Walgreen Co............................ 37,013
--------------
146,151
--------------
RETAIL - FOOD CHAINS (1.1%)
1,150 Albertson's, Inc....................... 40,250
800 American Stores Co..................... 33,600
1,000 Giant Food, Inc. (Class A)............. 33,000
1,150 Great Atlantic & Pacific Tea Co.,
Inc.................................. 35,938
700 Kroger Co.*............................ 33,425
1,250 Winn-Dixie Stores, Inc................. 38,125
--------------
214,338
--------------
RETAIL - GENERAL MERCHANDISE (1.0%)
1,700 Costco Companies, Inc.*................ 45,050
1,050 Dayton-Hudson Corp..................... 39,506
3,000 Kmart Corp.*........................... 33,375
800 Sears, Roebuck & Co.................... 38,400
1,600 Wal-Mart Stores, Inc................... 38,000
--------------
194,331
--------------
RETAIL - SPECIALTY (1.5%)
1,600 AutoZone, Inc.*........................ 34,600
1,000 Circuit City Stores, Inc............... 35,125
700 Home Depot, Inc........................ 34,650
1,100 Lowe's Companies, Inc.................. 36,438
1,300 Pep Boys-Manny Moe & Jack.............. 41,275
850 Tandy Corp............................. 38,463
1,450 Toys 'R' Us, Inc.*..................... 36,250
1,800 Woolworth Corp.*....................... 36,675
--------------
293,476
--------------
RETAIL - SPECIALTY APPAREL (0.7%)
6,000 Charming Shoppes, Inc.*................ 28,125
1,200 Gap, Inc............................... 34,500
2,200 Limited (The), Inc..................... 37,675
850 TJX Companies, Inc..................... 33,788
--------------
134,088
--------------
SAVINGS & LOAN COMPANIES (0.6%)
1,050 Ahmanson (H.F.) & Co................... 39,375
500 Golden West Financial Corp............. 33,563
1,200 Great Western Financial Corp........... 37,950
--------------
110,888
--------------
SEMICONDUCTOR EQUIPMENT (0.2%)
850 Applied Materials, Inc.*............... 41,969
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
SHOES (0.6%)
600 Nike, Inc. (Class B)................... $ 40,725
900 Reebok International Ltd. (United
Kingdom)............................. 42,750
3,300 Stride Rite Corp....................... 39,600
--------------
123,075
--------------
SPECIALIZED SERVICES (1.0%)
1,350 Block (H.&R.), Inc..................... 39,994
1,425 CUC International, Inc.*............... 35,269
700 Interpublic Group of Companies, Inc.... 34,563
2,150 Safety-Kleen Corp...................... 34,669
1,400 Service Corp. International............ 40,600
--------------
185,095
--------------
SPECIALTY PRINTING (0.6%)
1,200 Deluxe Corp............................ 36,900
1,200 Donnelley (R.R.) & Sons Co............. 37,500
1,150 Harland (John H.) Co................... 33,494
--------------
107,894
--------------
STEEL & IRON (1.4%)
1,600 Allegheny Teledyne Inc................. 38,000
7,400 Armco, Inc.*........................... 33,300
4,000 Bethlehem Steel Corp.*................. 34,000
2,000 Inland Steel Industries, Inc........... 38,250
750 Nucor Corp............................. 39,000
1,150 USX-U.S. Steel Group................... 36,369
1,950 Worthington Industries, Inc............ 37,781
--------------
256,700
--------------
TELECOMMUNICATIONS - LONG DISTANCE (1.0%)
1,000 AT&T Corp.............................. 39,375
1,700 Frontier Corp.......................... 37,188
1,100 MCI Communications Corp................ 38,500
850 Sprint Corp............................ 34,638
1,500 WorldCom, Inc.*........................ 37,688
--------------
187,389
--------------
TELECOMMUNICATIONS - WIRELESS (0.2%)
1,500 Airtouch Communications, Inc.*......... 38,813
--------------
TEXTILES (1.0%)
950 Fruit of the Loom, Inc. (Class A)*..... 38,119
850 Liz Claiborne, Inc..................... 35,806
1,100 Russell Corp........................... 35,475
900 Springs Industries, Inc. (Class A)..... 38,025
600 VF Corp................................ 39,900
--------------
187,325
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
TOBACCO (0.6%)
700 American Brands, Inc................... $ 35,700
350 Philip Morris Companies, Inc........... 41,606
1,100 UST, Inc............................... 33,825
--------------
111,131
--------------
TOYS (0.4%)
850 Hasbro Inc............................. 33,575
1,350 Mattel, Inc............................ 37,969
--------------
71,544
--------------
TRUCKERS (0.4%)
1,850 Caliber System, Inc.................... 40,700
1,250 Ryder System, Inc...................... 35,625
--------------
76,325
--------------
UTILITIES - ELECTRIC (5.0%)
900 American Electric Power Co., Inc....... 37,238
1,350 Baltimore Gas & Electric Co............ 37,125
1,050 Carolina Power & Light Co.............. 39,506
1,300 Central & South West Corp.............. 32,825
950 CINergy Corp........................... 32,775
1,100 Consolidated Edison Co. of New York,
Inc.................................. 34,100
1,100 Detroit Edison Co...................... 34,513
1,000 Dominion Resources, Inc................ 39,625
700 Duke Power Co.......................... 32,813
1,700 Edison International................... 36,338
1,450 Entergy Corp........................... 38,969
800 FPL Group, Inc......................... 35,400
1,000 General Public Utilities Corp.......... 33,500
1,700 Houston Industries, Inc................ 38,463
3,700 Niagara Mohawk Power Corp.*............ 37,463
750 Northern States Power Co............... 34,594
1,550 Ohio Edison Co......................... 35,844
1,750 PacifiCorp............................. 37,188
1,700 Peco Energy Co......................... 39,100
1,700 PG & E Corp............................ 38,675
1,700 PP&L Resources, Inc.................... 38,463
1,400 Public Service Enterprise Group,
Inc.................................. 38,325
1,500 Southern Co............................ 32,813
850 Texas Utilities Co..................... 34,425
1,600 Unicom Corp............................ 37,800
1,000 Union Electric Co...................... 38,000
--------------
945,880
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
UTILITIES - NATURAL GAS (2.7%)
800 Coastal Corp........................... $ 38,700
600 Columbia Gas System, Inc............... 39,075
650 Consolidated Natural Gas Co............ 36,156
1,000 Eastern Enterprises.................... 32,875
800 Enron Corp............................. 33,000
1,500 ENSERCH Corp........................... 34,125
950 NICOR, Inc............................. 34,319
2,350 NorAm Energy Corp...................... 36,719
1,250 ONEOK, Inc............................. 37,031
1,200 Pacific Enterprises.................... 36,150
900 PanEnergy Corp......................... 41,513
1,100 Peoples Energy Corp.................... 36,575
700 Sonat, Inc............................. 37,275
900 Williams Cos., Inc..................... 36,113
--------------
509,626
--------------
UTILITIES - TELEPHONE (1.7%)
1,050 Alltel Corp............................ 33,731
650 Ameritech Corp......................... 38,838
550 Bell Atlantic Corp..................... 36,988
850 BellSouth Corp......................... 37,719
800 GTE Corp............................... 37,600
700 NYNEX Corp............................. 35,438
950 Pacific Telesis Group.................. 37,288
650 SBC Communications, Inc................ 35,669
1,100 U.S. West Communications Group......... 36,163
--------------
329,434
--------------
WASTE MANAGEMENT (0.6%)
1,200 Browning-Ferris Industries, Inc........ 39,000
2,900 Laidlaw Inc. (Class B) (Canada)........ 37,700
1,100 WMX Technologies, Inc.................. 40,288
--------------
116,988
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $13,792,523).......... 18,612,989
--------------
</TABLE>
<TABLE>
<S> <S> <C>
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------
<S> <S> <C>
SHORT-TERM INVESTMENT (a) (4.7%)
U.S. GOVERNMENT AGENCY (4.7%)
$ 890 Federal Home Loan Mortgage Corp.
5.21-5.48% due 02/03/97-02/06/97
(Amortized Cost $889,608)............ $ 889,608
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $14,682,131) (B)............. 102.9% 19,502,597
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS........................................ (2.9) (547,004)
-------- -----------
NET ASSETS.................................... 100.0% $18,955,593
-------- -----------
-------- -----------
<FN>
- ---------------------
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 approximates identified
cost. The aggregate gross unrealized appreciation is $5,018,362 and the
aggregate gross unrealized depreciation is $197,896, resulting in net
unrealized appreciation of $4,820,466.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (89.8%)
ARGENTINA (0.6%)
ENERGY
13,428 Astra Cia Argentina de Petroleo
S.A................................ $ 25,186
1,500 YPF S.A. (Class D) (ADR)............. 41,813
--------------
66,999
--------------
TELECOMMUNICATIONS
600 Telefonica de Argentina S.A. (ADR)
(Class B).......................... 18,300
--------------
TOTAL ARGENTINA...................... 85,299
--------------
AUSTRALIA (1.0%)
BUSINESS SERVICES
4,800 Mayne Nickless Ltd................... 28,511
--------------
ENERGY
1,700 Broken Hill Proprietary Co. Ltd...... 23,307
2,500 Woodside Petroleum Ltd............... 17,652
--------------
40,959
--------------
FOODS & BEVERAGES
30,000 Goodman Fielder Ltd.................. 36,600
--------------
METALS & MINING
20,000 M.I.M. Holdings Ltd.................. 26,687
14,000 Pasminco Ltd......................... 24,553
--------------
51,240
--------------
TOTAL AUSTRALIA...................... 157,310
--------------
BELGIUM (0.3%)
RETAIL
1,000 G.I.B. Holdings Ltd.................. 46,418
--------------
BRAZIL (2.5%)
RETAIL
2,000 Companhia Brasileiras de Distribuicao
(GDR) - 144A**..................... 44,760
--------------
STEEL
1,100 Companhia Siderurgica Nacional
(ADR).............................. 35,002
--------------
STEEL & IRON
3,000 Usinas Siderurgicas de Minas Gerais
S.A. (S Shares) (ADR).............. 32,400
--------------
TELECOMMUNICATIONS
1,200 Telecommunicacoes Brasileiras S.A.
(ADR).............................. 104,700
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
UTILITIES - ELECTRIC
6,000 Centrais Electricas Brasileiras S.A.
(Class B) (ADR).................... $ 122,640
1,200 Companhia Energetica de Minas Gerais
S.A. (ADR)......................... 49,500
--------------
172,140
--------------
TOTAL BRAZIL......................... 389,002
--------------
CANADA (1.1%)
ENERGY
4,700 Gulf Canada Resources, Ltd.*......... 38,188
900 Talisman Energy, Inc.*............... 31,623
--------------
69,811
--------------
TRANSPORTATION
2,500 Canadian National Railway Co......... 99,343
--------------
TOTAL CANADA......................... 169,154
--------------
CHILE (0.8%)
CHEMICALS
470 Sociedad Quimica y Minera de Chile
S.A. (B Shares) (ADR).............. 27,377
--------------
FOODS & BEVERAGES
2,000 Compania Cervecerias Unidas S.A.
(ADR).............................. 32,750
--------------
PHARMACEUTICALS
1,300 Laboratorio Chile S.A. (ADR)......... 22,588
--------------
TELECOMMUNICATIONS
1,487 Compania de Telecommunicaciones de
Chile S.A. (ADR)................... 36,989
--------------
TOTAL CHILE.......................... 119,704
--------------
DENMARK (0.9%)
PHARMACEUTICALS
800 Novo-Nordisk AS (Series B)........... 74,197
--------------
TRANSPORTATION
600 Kobenhavns Lufthavne AS.............. 65,722
--------------
TOTAL DENMARK........................ 139,919
--------------
FINLAND (0.4%)
MANUFACTURING
800 KCI Konecranes International*........ 24,593
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
PHARMACEUTICALS
1,000 Orion-yhtymae OY (B Shares).......... $ 36,602
--------------
TOTAL FINLAND........................ 61,195
--------------
FRANCE (4.0%)
BROADCAST MEDIA
200 Societe Television Francaise 1....... 17,656
--------------
BUILDING MATERIALS
200 Compagnie de Saint-Gobain............ 30,758
--------------
DISTRIBUTION
100 Guilbert S.A......................... 18,072
--------------
ENERGY
700 Elf Aquitaine S.A.................... 67,932
--------------
FINANCIAL SERVICES
350 Credit Local de France............... 31,309
--------------
FOODS & BEVERAGES
260 LVMH Moet-Hennessy Louis Vuitton..... 65,781
--------------
HOUSEHOLD PRODUCTS
370 Societe BIC S.A...................... 58,976
--------------
INSURANCE
1,200 AXA-UAP.............................. 79,154
1,400 Scor................................. 50,348
--------------
129,502
--------------
PHARMACEUTICALS
550 Sanofi S.A........................... 55,164
--------------
RETAIL
100 Carrefour Supermarche................ 59,998
180 Castorama Dubois Investissement...... 29,602
--------------
89,600
--------------
STEEL & IRON
2,800 Usinor Sacilor....................... 39,772
--------------
TOTAL FRANCE......................... 604,522
--------------
GERMANY (3.3%)
APPAREL
400 Adidas AG............................ 37,811
--------------
AUTOMOTIVE
90 Bayerische Motoren Werke (BMW) AG.... 57,613
200 Volkswagen AG........................ 93,855
--------------
151,468
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
CHEMICALS
1,400 BASF AG.............................. $ 50,662
1,200 Bayer AG............................. 45,548
600 SGL Carbon AG........................ 79,197
--------------
175,407
--------------
MACHINERY - DIVERSIFIED
100 Mannesmann AG........................ 38,689
--------------
PHARMACEUTICALS
1,000 Gehe AG.............................. 65,967
--------------
UTILITIES - ELECTRIC
700 VEBA AG.............................. 38,701
--------------
TOTAL GERMANY........................ 508,043
--------------
HONG KONG (4.3%)
BANKING
6,000 Hang Seng Bank Ltd................... 70,657
3,140 HSBC Holdings PLC.................... 72,739
--------------
143,396
--------------
CONGLOMERATES
10,000 Hutchison Whampoa, Ltd............... 75,497
6,500 Swire Pacific Ltd. (Class A)......... 59,768
--------------
135,265
--------------
HOTELS
44,000 Harbour Centre Development........... 65,869
--------------
REAL ESTATE
10,000 Cheung Kong (Holdings) Ltd........... 93,241
5,000 Henderson Land Development Co.
Ltd................................ 46,298
17,000 New World Infrastructure Ltd.*....... 50,241
3,000 Sun Hung Kai Properties Ltd.......... 33,877
--------------
223,657
--------------
TELECOMMUNICATIONS
2,200 Hong Kong Telecommunications, Ltd.
(ADR).............................. 37,950
--------------
UTILITIES
23,000 Hong Kong & China Gas Co. Ltd........ 43,336
--------------
TOTAL HONG KONG...................... 649,473
--------------
INDONESIA (0.2%)
TELECOMMUNICATIONS
1,100 PT Indosat (ADR)..................... 30,937
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
ITALY (1.6%)
APPAREL
400 Fila Holding SpA (ADR)............... $ 27,400
--------------
ENERGY
1,500 Ente Nazionale Idrocarburi SpA
(ADR).............................. 83,250
--------------
RETAIL
700 Gucci Group NV....................... 48,825
--------------
TELECOMMUNICATIONS
16,000 Stet Societa' Finanziaria Telefonica
SpA................................ 78,958
--------------
TOTAL ITALY.......................... 238,433
--------------
JAPAN (16.2%)
AUTOMOTIVE
2,000 Honda Motor Co....................... 53,555
3,000 Suzuki Motor Co. Ltd................. 28,426
--------------
81,981
--------------
BANKING
9,000 Asahi Bank, Ltd...................... 61,547
--------------
BUILDING & CONSTRUCTION
7,000 Sekisui House Ltd.................... 62,289
--------------
BUILDING MATERIALS
1,000 Toyo Shutter......................... 5,026
--------------
BUSINESS SERVICES
2,000 Secom Co............................. 107,934
--------------
CHEMICALS
12,000 Asahi Chemical Industry Co. Ltd...... 62,091
8,000 Kaneka Corp.......................... 35,660
6,000 Nippon Shokubai K.K. Co.............. 35,297
--------------
133,048
--------------
COMPUTER SOFTWARE
1,000 Square Co. Ltd....................... 52,731
--------------
CONSUMER PRODUCTS
4,000 Kao Corp............................. 42,185
--------------
ELECTRONICS
6,000 Canon, Inc........................... 127,050
9,000 Hitachi, Ltd......................... 54,948
4,000 Matsushita Electric Industrial Co.,
Ltd................................ 60,311
6,000 NEC Corp............................. 70,199
3,000 Sharp Corp........................... 41,032
2,000 Sony Corp............................ 134,794
1,000 TDK Corp............................. 63,937
--------------
552,271
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
1,000 Rohm Co., Ltd........................ $ 65,502
--------------
ENGINEERING & CONSTRUCTION
8,000 Kawasaki Heavy Industries............ 31,177
--------------
FINANCIAL SERVICES
4,000 Nomura Securities Co. Ltd............ 51,084
2,000 Orix Corp............................ 85,029
1,000 Promise Co., Ltd..................... 41,608
--------------
177,721
--------------
FURNITURE
1,000 Itoki Crebio Corp.................... 5,150
--------------
INTERNATIONAL TRADE
10,000 Mitsui & Co.......................... 73,494
--------------
LEISURE
2,000 Nintendo Corp., Ltd.................. 130,840
--------------
MACHINE TOOLS
7,000 Asahi Diamond Industries Co. Ltd..... 59,405
--------------
MACHINERY
9,000 Komatsu Ltd.......................... 63,401
8,000 Minebea Co., Ltd..................... 63,805
11,000 Mitsubishi Heavy Industries, Ltd..... 79,122
1,000 Nippon Thompson Co................... 6,921
--------------
213,249
--------------
MANUFACTURING
1,000 Bridgestone Metalpha Corp............ 7,992
--------------
PHARMACEUTICALS
5,000 Eisai Co. Ltd........................ 96,399
1,000 Sankyo Co. Ltd....................... 26,036
1,000 Terumo............................... 13,677
--------------
136,112
--------------
REAL ESTATE
1,000 Cesar Co............................. 5,158
--------------
RESTAURANTS
5 Yoshinoya D & C Company Ltd.......... 54,379
--------------
RETAIL
2,000 Aoyama Trading Co., Ltd.............. 51,413
4,000 Izumiya Co. Ltd...................... 57,345
2,000 Jusco Co............................. 55,862
--------------
164,620
--------------
TELECOMMUNICATIONS
10 DDI Corp............................. 61,218
8 Nippon Telegraph & Telephone......... 57,675
--------------
118,893
--------------
TEXTILES - APPAREL
4,000 Kuraray Co. Ltd...................... 33,616
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
TRANSPORTATION
9,000 Nippon Yusen Kabushiki Kaish......... $ 35,223
6,000 Yamato Transport Co. Ltd............. 55,368
--------------
90,591
--------------
TOTAL JAPAN.......................... 2,466,911
--------------
MALAYSIA (2.9%)
BANKING
11,000 DCB Holdings Berhad.................. 41,605
4,000 Malayan Banking Berhad............... 44,260
22,666 Public Bank Berhad................... 50,160
--------------
136,025
--------------
BUILDING & CONSTRUCTION
9,000 United Engineers (Malaysia) Berhad
Ltd................................ 80,755
--------------
CONGLOMERATES
10,000 Road Builder (M) Holdings Berhad..... 59,953
--------------
ENTERTAINMENT
25,000 Magnum Corporation Berhad............ 50,296
--------------
FINANCIAL SERVICES
6,000 Arab Malaysian Finance Berhad........ 36,937
--------------
MACHINERY
6,000 UMW Holdings Berhad.................. 30,177
--------------
NATURAL GAS
5,000 Petronas Gas Berhad.................. 18,106
--------------
TOBACCO
15,000 RJ Reynolds Berhad................... 37,420
--------------
TOTAL MALAYSIA....................... 449,669
--------------
MEXICO (2.6%)
AUTOMOTIVE
4,000 Sanluis Corporacion S.A. de C.V.
(Units)+........................... 22,418
--------------
BANKING
15,000 Grupo Financiero Banamex Accival S.A.
de C.V. (B Shares)*................ 30,710
609 Grupo Financiero Banamex Accival S.A.
de C.V. (Series L)*................ 1,163
--------------
31,873
--------------
BUILDING & CONSTRUCTION
8,000 Corporacion GEO S.A. de C.V. (Series
B)*................................ 39,411
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
BUILDING MATERIALS
7,087 Cemex, S.A. de C.V. (B Shares)....... $ 29,110
--------------
CONGLOMERATES
700 DESC S.A. de C.V. (Series C)
(ADR)*............................. 16,450
6,914 Grupo Industria Alfa S.A. de C.V. (A
Shares)............................ 36,273
--------------
52,723
--------------
FOODS & BEVERAGES
6,000 Fomento Economico Mexicano S.A. de
C.V. (B Shares).................... 21,152
750 Panamerican Beverages, Inc. (Class
A)................................. 39,281
--------------
60,433
--------------
MANUFACTURING
2,000 Elamex S.A. de C.V.*................. 20,500
--------------
MEDIA
1,400 Grupo Televisa S.A. (GDR)*........... 36,225
--------------
METALS & MINING
4,200 Tubos de Acero de Mexico S.A. de C.V.
(ADR)*............................. 73,500
--------------
TELECOMMUNICATIONS
1,000 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR)................... 37,625
--------------
TOTAL MEXICO......................... 403,818
--------------
NETHERLANDS (4.1%)
BANKING
900 ABN-AMRO Holding NV.................. 59,224
--------------
BUILDING MATERIALS
400 Hunter Douglas NV.................... 27,387
--------------
BUSINESS & PUBLIC SERVICES
700 Randstad Holdings NV................. 48,612
--------------
CHEMICALS
400 Akzo Nobel........................... 56,186
--------------
COMPUTER SOFTWARE
1,000 Baan Co., NV*........................ 45,375
--------------
FOOD PROCESSING
200 Nutricia Verenigde Bedrijven NV...... 28,691
--------------
FURNITURE
700 Ahrend Groep NV...................... 42,221
--------------
INSURANCE
500 Aegon NV............................. 30,593
875 ING Groep NV......................... 32,950
--------------
63,543
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
MEDIA
1,100 PolyGram NV.......................... $ 48,416
--------------
PUBLISHING
2,900 Elsevier NV.......................... 44,596
500 Wolters Kluwer NV.................... 61,675
--------------
106,271
--------------
RETAIL
900 Koninklijke Ahold NV................. 55,507
--------------
TRANSPORTATION
900 Koninklijke Van Ommeren NV........... 39,369
--------------
TOTAL NETHERLANDS.................... 620,802
--------------
NORWAY (0.2%)
INSURANCE
6,500 Storebrand ASA*...................... 38,989
--------------
PANAMA (0.2%)
BANKING
700 Banco Latinoamericano de
Exportaciones S.A. (E Shares)...... 36,137
--------------
PERU (0.3%)
METALS & MINING
1,500 Compania de Minas Buenaventura S.A.
(Series B) (ADR)................... 23,812
--------------
TELECOMMUNICATIONS
1,000 CPT Telefonica del Peru S.A. (Class
B) (ADR)........................... 21,625
--------------
TOTAL PERU........................... 45,437
--------------
PORTUGAL (0.2%)
TELECOMMUNICATIONS
1,100 Portugal Telecom S.A. (ADR).......... 37,675
--------------
SINGAPORE (1.8%)
BANKING
4,500 Development Bank of Singapore,
Ltd................................ 62,376
5,000 United Overseas Bank, Ltd............ 58,288
--------------
120,664
--------------
PUBLISHING
4,000 Singapore Press Holdings Ltd......... 80,182
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
REAL ESTATE
17,000 DBS Land Ltd......................... $ 70,088
--------------
TOTAL SINGAPORE...................... 270,934
--------------
SOUTH AFRICA (0.1%)
BREWERS
700 South African Breweries Ltd. (ADR)... 18,638
--------------
SOUTH KOREA (0.2%)
TELECOMMUNICATIONS
2,060 Korea Mobile Telecommunications
(ADR).............................. 30,643
--------------
SPAIN (1.5%)
BANKS
1,100 Banco Bilbao Vizcaya................. 66,753
200 Banco Popular Espanol S.A............ 36,324
--------------
103,077
--------------
NATURAL GAS
200 Gas Natural SDG S.A. (Series E)...... 46,861
--------------
TELECOMMUNICATIONS
500 Telefonica de Espana S.A. (ADR)...... 35,000
--------------
UTILITIES - ELECTRIC
700 Empresa Nacional de Electricidad
S.A................................ 45,658
--------------
TOTAL SPAIN.......................... 230,596
--------------
SWEDEN (1.8%)
AUTOMOTIVE
2,200 Scania AB (A Shares)................. 55,548
--------------
FINANCE
1,200 OM Gruppen AB........................ 36,094
--------------
MACHINERY
2,300 Kalmar Industries AB................. 37,446
--------------
MANUFACTURING
1,200 Assa Abloy AB (Series B)............. 22,517
--------------
PHARMACEUTICALS
1,000 Astra AB (Series "A" Free)........... 47,669
--------------
TELECOMMUNICATIONS
2,250 Ericsson (L.M.) Telephone Co. AB
(Series "B" Free).................. 75,437
--------------
TOTAL SWEDEN......................... 274,711
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
SWITZERLAND (1.4%)
ENGINEERING
40 ABB AG - Bearer...................... $ 51,196
--------------
PHARMACEUTICALS
32 Novartis AG*......................... 36,658
30 Novartis AG-Bearer*.................. 34,304
10 Roche Holdings AG.................... 87,869
--------------
158,831
--------------
TOTAL SWITZERLAND.................... 210,027
--------------
UNITED KINGDOM (9.6%)
AEROSPACE
11,300 Rolls-Royce PLC...................... 43,369
--------------
AEROSPACE & DEFENSE
2,451 British Aerospace PLC................ 49,820
2,900 Smiths Industries PLC................ 36,157
3,000 Vickers PLC.......................... 12,868
--------------
98,845
--------------
AUTO PARTS
7,116 BBA Group PLC........................ 39,862
--------------
BANKING
3,600 Abbey National PLC................... 45,172
1,300 Barclays Bank, PLC................... 24,031
4,453 Lloyds TSB Group PLC................. 34,210
3,999 National Westminster Bank PLC........ 49,331
--------------
152,744
--------------
BEVERAGES
3,500 Bass PLC............................. 47,391
4,000 Guinness PLC......................... 27,721
--------------
75,112
--------------
BROADCAST MEDIA
3,600 Flextech PLC*........................ 40,333
--------------
BUILDING & CONSTRUCTION
5,766 Blue Circle Industries PLC........... 35,853
--------------
BUSINESS SERVICES
3,400 Compass Group PLC.................... 36,677
3,000 Reuters Holdings PLC................. 31,450
--------------
68,127
--------------
CHEMICALS
4,000 Albright & Wilson PLC................ 10,371
--------------
COMPUTER SOFTWARE & SERVICES
1,500 SEMA Group PLC....................... 26,408
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
CONGLOMERATES
8,300 BTR PLC.............................. $ 34,339
9,200 Tomkins PLC.......................... 41,229
--------------
75,568
--------------
CONSUMER PRODUCTS
2,000 Vendome Luxury Group PLC (Units)+.... 15,973
--------------
ELECTRICAL EQUIPMENT
3,300 BICC Group PLC....................... 15,158
--------------
ENERGY
5,475 British Petroleum Co. PLC............ 64,406
7,100 Shell Transport & Trading Co. PLC.... 122,272
--------------
186,678
--------------
FOOD PROCESSING
600 Associated British Foods PLC......... 4,605
--------------
INSURANCE
2,765 General Accident PLC................. 35,713
5,847 Prudential Corp. PLC................. 50,440
5,441 Royal & Sun Alliance Insurance Group
PLC................................ 41,626
--------------
127,779
--------------
LEISURE
2,644 Granada Group PLC.................... 38,001
--------------
PHARMACEUTICALS
6,126 Glaxo Wellcome PLC................... 97,949
5,104 Medeva PLC........................... 23,527
--------------
121,476
--------------
RETAIL
4,300 Next PLC............................. 39,297
--------------
TELECOMMUNICATIONS
16,000 British Telecommunications PLC....... 109,346
9,602 Securicor PLC........................ 44,798
6,900 Vodafone Group PLC................... 29,928
--------------
184,072
--------------
TRANSPORTATION
2,873 British Airways PLC.................. 27,267
--------------
UTILITIES
3,155 Thames Water PLC..................... 34,135
--------------
TOTAL UNITED KINGDOM................. 1,461,033
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
UNITED STATES (25.4%)
AEROSPACE & DEFENSE
800 Lockheed Martin Corp................. $ 73,600
4,700 Loral Space & Communications*........ 81,075
--------------
154,675
--------------
AUTOMOTIVE
2,100 Chrysler Corp........................ 73,237
--------------
BEVERAGES - SOFT DRINKS
2,300 PepsiCo Inc.......................... 80,212
--------------
BIOTECHNOLOGY
1,500 Biochem Pharma, Inc.*................ 84,187
1,700 Biogen, Inc.*........................ 79,475
2,300 Centocor, Inc.*...................... 87,687
--------------
251,349
--------------
BUSINESS SYSTEMS
2,000 Electronic Data Systems Corp......... 92,000
--------------
CHEMICALS
1,200 Dow Chemical Co...................... 92,550
2,050 Monsanto Co.......................... 77,644
1,600 Praxair, Inc......................... 74,200
--------------
244,394
--------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE
1,400 Cisco Systems, Inc.*................. 97,475
--------------
COMPUTERS - PERIPHERAL EQUIPMENT
2,000 Seagate Technology, Inc.*............ 103,000
--------------
COMPUTERS - SYSTEMS
1,700 Diebold, Inc......................... 100,300
1,760 Hewlett-Packard Co................... 92,620
3,000 Sun Microsystems, Inc.*.............. 94,875
--------------
287,795
--------------
ELECTRICAL EQUIPMENT
1,100 Honeywell, Inc....................... 79,337
--------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
625 Intel Corp........................... 101,328
--------------
ENTERTAINMENT
1,060 Walt Disney Co....................... 77,645
--------------
FINANCIAL - MISCELLANEOUS
2,500 Ahmanson (H.F.) & Co................. 93,750
1,550 American Express Co.................. 96,681
2,700 Collective Bancorp, Inc.............. 91,800
2,500 Fannie Mae........................... 98,750
1,400 Golden West Financial Corp........... 93,975
2,900 Great Western Financial Corp......... 91,712
1,900 Travelers Group, Inc................. 99,512
--------------
666,180
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
<C> <S> <C>
FOODS
1,200 General Mills, Inc................... $ 81,300
--------------
HEALTHCARE - DIVERSIFIED
4,300 Humana, Inc.*........................ 81,700
1,020 PacifiCare Health Systems, Inc.
(Class B)*......................... 81,855
--------------
163,555
--------------
HOUSEHOLD PRODUCTS
850 Colgate-Palmolive Co................. 82,238
--------------
MEDICAL PRODUCTS & SUPPLIES
2,000 Baxter International, Inc............ 92,250
1,200 Medtronic, Inc....................... 82,200
--------------
174,450
--------------
MEDICAL SERVICES
1,300 HBO & Co............................. 81,250
--------------
OIL INTEGRATED - INTERNATIONAL
730 Atlantic Richfield Co................ 96,543
1,400 Chevron Corp......................... 92,925
900 Exxon Corp........................... 93,263
730 Mobil Corp........................... 95,813
--------------
378,544
--------------
PHARMACEUTICALS
1,500 Abbott Laboratories.................. 81,563
1,300 American Home Products Corp.......... 82,388
--------------
163,951
--------------
REGIONAL BANKS
2,450 First Tennessee National Corp........ 99,225
--------------
RETAIL - MAIL ORDER/GENERAL MERCHANDISING
1,550 Sears, Roebuck & Co.................. 74,400
--------------
RETAIL - SPECIALTY APPAREL
2,600 Gap, Inc............................. 74,750
--------------
SEMICONDUCTORS
3,400 Teradyne Inc.*....................... 104,975
--------------
SHOES
1,180 Nike, Inc. (Class B)................. 80,093
--------------
TOTAL UNITED STATES.................. 3,867,358
--------------
VENEZUELA (0.3%)
TELECOMMUNICATIONS
1,500 Compania Anonima Nacional Telefonos
de Venezuela (Class D) (ADR)*...... 42,375
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $12,447,720)........ 13,705,162
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (10.9%)
U.S. GOVERNMENT AGENCY (a) (7.4%)
$ 1,125 Federal Home Loan Mortgage Corp.
5.25% due 02/04/97 (Amortized Cost
$1,124,508)........................ $ 1,124,508
--------------
REPURCHASE AGREEMENT (3.5%)
527 The Bank of New York 5.25% due
02/03/97 (dated 01/31/97; proceeds
$527,687 collateralized by $527,263
Federal Farm Credit Bank 4.95% due
03/03/97 valued at $538,005)
(Identified Cost $527,456)......... 527,456
--------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $1,651,964)......... 1,651,964
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $14,099,684)............. 100.7% 15,357,126
LIABILITIES IN EXCESS OF OTHER ASSETS..... (0.7) (103,675)
-------- -----------
NET ASSETS................................ 100.0% $15,253,451
-------- -----------
-------- -----------
<FN>
- ---------------------
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 common stock traded together as a unit.
(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 approximates identified
cost. The aggregate gross unrealized appreciation is $1,734,729 and the
aggregate gross unrealized depreciation is $477,287, resulting in net
unrealized appreciation of $1,257,442.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JANUARY 31, 1997:
<TABLE>
<CAPTION>
IN
CONTRACTS TO EXCHANGE DELIVERY UNREALIZED
RECEIVE FOR DATE DEPRECIATION
--------------------------------------------------------------------
<S> <C> <C> <C>
DEM 104,713 $ 64,209 02/04/97 $ (310)
FIM 180,720 $ 37,132 02/04/97 (95)
MXN 80,922 $ 10,368 02/04/97 (13)
$ 24,815 SEK 180,158 02/04/97 (42)
$ 6,133 ITL 9,906,192 02/06/97 (12)
-----
Total unrealized depreciation ................ $ (472)
-----
-----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
SUMMARY OF INVESTMENTS JANUARY 31, 1997
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------
<S> <C> <C>
Aerospace.................................. $ 43,369 0.3%
Aerospace & Defense........................ 253,520 1.7
Apparel.................................... 65,211 0.4
Auto Parts................................. 39,862 0.3
Automotive................................. 384,652 2.5
Banking.................................... 741,610 4.9
Banks...................................... 103,077 0.7
Beverages.................................. 75,112 0.5
Beverages - Soft Drinks.................... 80,212 0.5
Biotechnology.............................. 251,349 1.7
Brewers.................................... 18,638 0.1
Broadcast Media............................ 57,989 0.4
Building & Construction.................... 218,308 1.4
Building Materials......................... 92,281 0.6
Business & Public Services................. 48,612 0.3
Business Services.......................... 204,572 1.3
Business Systems........................... 92,000 0.6
Chemicals.................................. 646,783 4.2
Communications Equipment & Software........ 97,475 0.6
Computer Software.......................... 98,106 0.6
Computer Software & Services............... 26,408 0.2
Computers - Peripheral Equipment........... 103,000 0.7
Computers - Systems........................ 287,795 1.9
Conglomerates.............................. 323,509 2.1
Consumer Products.......................... 58,158 0.4
Distribution............................... 18,072 0.1
Electrical Equipment....................... 94,495 0.6
Electronics................................ 552,271 3.6
Electronics - Semiconductors/Components.... 166,830 1.1
Energy..................................... 515,629 3.4
Engineering................................ 51,196 0.3
Engineering & Construction................. 31,177 0.2
Entertainment.............................. 127,941 0.8
Finance.................................... 36,094 0.2
Financial - Miscellaneous.................. 666,180 4.4
Financial Services......................... 245,967 1.6
Food Processing............................ 33,296 0.2
Foods...................................... 81,300 0.5
Foods & Beverages.......................... 195,564 1.3
Furniture.................................. 47,371 0.3
Healthcare Diversified..................... 163,555 1.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------
<S> <C> <C>
Hotels..................................... $ 65,869 0.4%
Household Products......................... 141,214 0.9
Insurance.................................. 359,813 2.4
International Trade........................ 73,494 0.5
Leisure.................................... 168,841 1.1
Machine Tools.............................. 59,405 0.4
Machinery.................................. 280,872 1.8
Machinery - Diversified.................... 38,689 0.3
Manufacturing.............................. 75,602 0.5
Media...................................... 84,641 0.6
Medical Products & Supplies................ 174,450 1.1
Medical Services........................... 81,250 0.5
Metals & Mining............................ 148,552 1.0
Natural Gas................................ 64,967 0.4
Oil Integrated - International............. 378,544 2.5
Pharmaceuticals............................ 882,557 5.8
Publishing................................. 186,453 1.2
Real Estate................................ 298,903 2.0
Regional Banks............................. 99,225 0.7
Repurchase Agreement....................... 527,456 3.5
Restaurants................................ 54,379 0.4
Retail..................................... 489,027 3.2
Retail - Mail Order........................ 74,400 0.5
Retail - Specialty Apparel................. 74,750 0.5
Semiconductors............................. 104,975 0.7
Shoes...................................... 80,093 0.5
Steel...................................... 35,002 0.2
Steel & Iron............................... 72,172 0.5
Telecommunications......................... 891,179 5.8
Textiles - Apparel......................... 33,616 0.2
Tobacco.................................... 37,420 0.3
Transportation............................. 322,292 2.1
U.S. Government Agency..................... 1,124,508 7.4
Utilities.................................. 77,471 0.5
Utilities - Electric....................... 256,499 1.7
----------------- -----
$ 15,357,126 100.7%
----------------- -----
----------------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks.............................. $ 13,705,162 89.8%
Short-Term Investments..................... 1,651,964 10.9
----------------- -----
$ 15,357,126 100.7%
----------------- -----
----------------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (50.3%)
AEROSPACE & DEFENSE (1.3%)
3,905 Honeywell, Inc........................ $ 281,648
--------------
ALUMINUM (0.5%)
1,600 Aluminum Co. of America............... 110,400
--------------
AUTOMOTIVE (2.3%)
8,000 Chrysler Corp......................... 279,000
3,500 Ford Motor Co......................... 112,437
1,600 General Motors Corp................... 94,400
--------------
485,837
--------------
BANKS (0.5%)
330 Wells Fargo & Co...................... 100,567
--------------
BANKS - MONEY CENTER (0.6%)
1,000 Citicorp.............................. 116,375
--------------
BANKS - THRIFT INSTITUTIONS (0.9%)
1,500 Golden West Financial Corp............ 100,687
4,200 Roosevelt Financial Group, Inc........ 90,300
--------------
190,987
--------------
BEVERAGES - SOFT DRINKS (0.6%)
3,400 PepsiCo Inc........................... 118,575
--------------
BROKERAGE (0.5%)
1,350 Merrill Lynch & Co., Inc.............. 113,737
--------------
CABLE/CELLULAR (0.8%)
9,400 U.S. West Media Group*................ 175,075
--------------
CHEMICALS (1.1%)
1,250 Dow Chemical Co....................... 96,406
3,750 Monsanto Co........................... 142,031
--------------
238,437
--------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (0.6%)
1,840 Cisco Systems, Inc.*.................. 128,110
--------------
COMPUTER SOFTWARE (1.5%)
1,800 Microsoft Corp.*...................... 183,375
3,150 Oracle Corp.*......................... 122,062
--------------
305,437
--------------
COMPUTERS (2.8%)
5,200 Dell Computer Corp.*.................. 343,850
3,900 Gateway 2000, Inc.*................... 237,900
--------------
581,750
--------------
COMPUTERS - PERIPHERAL EQUIPMENT (0.7%)
2,720 Seagate Technology, Inc.*............. 140,080
--------------
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
COMPUTERS - SYSTEMS (2.0%)
2,300 Diebold, Inc.......................... $ 135,700
1,630 Electronic Data Systems Corp.......... 74,980
2,200 Hewlett-Packard Co.................... 115,775
3,300 Sun Microsystems, Inc.*............... 104,362
--------------
430,817
--------------
CONGLOMERATES (1.3%)
2,580 General Electric Co................... 265,740
--------------
CONSUMER PRODUCTS (1.1%)
4,800 Tupperware Corp....................... 225,000
--------------
ELECTRICAL EQUIPMENT (2.7%)
2,410 Emerson Electric Co................... 237,987
1,900 Sony Corp. (ADR) (Japan).............. 128,013
11,500 Westinghouse Electric Corp............ 211,313
--------------
577,313
--------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (2.3%)
3,000 Intel Corp............................ 486,375
--------------
ENTERTAINMENT/GAMING (1.2%)
7,000 Circus Circus Enterprises, Inc.*...... 246,750
--------------
FINANCIAL SERVICES (2.0%)
5,000 American Express Co................... 311,875
2,600 Federal National Mortgage Assoc....... 102,700
--------------
414,575
--------------
FOODS (2.2%)
1,430 Campbell Soup Co...................... 118,690
1,260 General Mills, Inc.................... 85,365
7,000 Quaker Oats Company (The)............. 268,625
--------------
472,680
--------------
FOREST PRODUCTS (0.4%)
2,100 Champion International Corp........... 87,938
--------------
HARDWARE & TOOLS (1.0%)
6,000 Black & Decker Corp................... 201,000
--------------
HEALTHCARE - MISCELLANEOUS (2.5%)
11,200 Humana, Inc.*......................... 212,800
4,000 PacifiCare Health Systems, Inc. (Class
B)*................................. 321,000
--------------
533,800
--------------
HOSPITAL MANAGEMENT (1.0%)
24,000 Transitional Hospitals Corp.*......... 219,000
--------------
HOUSEHOLD APPLIANCES (1.1%)
11,000 Maytag Corp........................... 225,500
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------
<C> <S> <C>
INSURANCE (0.1%)
172 Aetna Inc. (Class C) (Conv. Pref.)
$1.19............................... $ 13,459
--------------
LEISURE (1.3%)
7,500 Carnival Corp. (Class A).............. 275,625
--------------
OFFICE EQUIPMENT (0.7%)
3,500 Ikon Office Solutions, Inc............ 154,438
--------------
OIL DRILLING & SERVICES (0.7%)
1,350 Schlumberger, Ltd..................... 150,019
--------------
OIL INTEGRATED - INTERNATIONAL (2.7%)
2,070 Chevron Corp.......................... 137,396
1,400 Exxon Corp............................ 145,075
1,000 Mobil Corp............................ 131,250
1,500 Texaco, Inc........................... 158,813
--------------
572,534
--------------
PAPER (0.2%)
1,750 Unisource Worldwide, Inc.............. 38,063
--------------
PHARMACEUTICALS (1.8%)
1,800 Abbott Laboratories................... 97,875
2,400 American Home Products Corp........... 152,100
2,200 Johnson & Johnson..................... 126,775
--------------
376,750
--------------
RAILROADS (0.8%)
1,950 Norfolk Southern Corp................. 172,819
--------------
RETAIL - DEPARTMENT STORES (0.7%)
4,200 Dayton-Hudson Corp.................... 158,025
--------------
RETAIL - SPECIALTY (3.0%)
10,000 Bed Bath & Beyond, Inc.*.............. 275,000
2,400 Costco Companies, Inc.*............... 63,600
2,300 Home Depot, Inc....................... 113,850
9,500 Pier 1 Imports, Inc................... 175,750
--------------
628,200
--------------
RETAIL - SPECIALTY APPAREL (0.6%)
4,400 Gap, Inc.............................. 126,500
--------------
SHOES (1.0%)
3,000 Nike, Inc. (Class B).................. 203,625
--------------
STEEL (1.2%)
4,300 Inland Steel Industries, Inc.......... 82,238
3,450 Nucor Corp............................ 179,400
--------------
261,638
--------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $7,721,446).......... 10,605,198
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (11.5%)
AIRLINES (0.5%)
$ 100 America West Airlines, Inc.
6.86% due 07/02/04.................. $ 99,125
--------------
AUTOMOTIVE - FINANCE (0.6%)
15 Ford Capital BV (Netherlands)
9.375% due 05/15/01................. 16,492
100 GMAC Pass Thru Asset Trust 97-144A**
6.50% due 01/17/00.................. 100,250
--------------
116,742
--------------
BANK HOLDING COMPANIES (0.5%)
100 Standard Federal Bancorp
7.75% due 07/17/06.................. 103,757
--------------
BANKS (1.8%)
100 Bank One Corp
9.875% due 03/01/09................. 120,651
100 Central Fidelity Banks, Inc.
8.15% due 11/15/02.................. 105,692
50 First Nationwide Bank
10.00% due 10/01/06................. 57,487
100 People's Bank-Bridgeport
7.20% due 12/01/06.................. 98,030
--------------
381,860
--------------
BANKS - INTERNATIONAL (0.4%)
100 Banque Paribas of New York
6.875% due 03/01/09................. 95,280
--------------
BROKERAGE (0.2%)
50 Paine Webber Group, Inc.
8.25% due 05/01/02.................. 52,745
--------------
FINANCIAL (0.5%)
100 Vesta Capital Trust I-144A**
8.525% due 01/15/27................. 101,125
--------------
FINANCIAL SERVICES (1.7%)
100 Capital One Bank
8.125% due 03/01/00................. 103,642
100 Markel Capital Trust I-144A**
8.71% due 01/01/46.................. 102,125
100 MBNA Capital Inc.
8.278% due 12/01/26................. 101,125
50 RHG Finance Corp.
8.875% due 10/01/05................. 51,852
--------------
358,744
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
INSURANCE (1.3%)
$ 100 Associates Corp. N.A.
6.375% due 08/15/99................. $ 100,018
50 Conseco, Inc.
10.50% due 12/15/04................. 59,055
100 Farmers Insurance Exchange - 144A**
8.50% due 08/01/04.................. 105,750
--------------
264,823
--------------
INTERNATIONAL TRADE (0.5%)
100 Guangdong International Trust &
Investment -144A** (China)
8.75% due 10/24/16.................. 103,625
--------------
METALS & MINING (0.5%)
100 Freeport-McMoran C & G Co.
7.50% due 11/15/06.................. 98,665
--------------
MISCELLANEOUS (0.5%)
100 Placer Dome, Inc. (Canada)
8.50% due 12/31/45.................. 98,125
--------------
OIL & GAS PRODUCTS (0.4%)
100 Mitchell Energy & Development Corp.
6.75% due 02/15/04.................. 95,959
--------------
OIL - DOMESTIC (0.3%)
50 Occidental Petroleum Corp.
11.125% due 08/01/10................ 65,650
--------------
RAILROAD EQUIPMENT (0.5%)
100 Anixter International Inc.
8.00% due 09/15/03.................. 101,668
--------------
STEEL (0.0%)
10 Pohang Iron & Steel Co., Ltd. (South
Korea)
7.50% due 08/01/02.................. 10,273
--------------
TELECOMMUNICATIONS (0.5%)
100 Total Access Communication - 144A**
(Thailand)
8.375% due 11/04/06................. 100,625
--------------
TOBACCO (0.5%)
100 Philip Morris Companies, Inc.
7.65% due 07/01/08.................. 102,323
--------------
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
UTILITIES - ELECTRIC (0.3%)
$ 20 Long Island Lighting Co.
6.25% due 07/15/01.................. $ 19,382
50 Niagara Mohawk Power Corp.
9.25% due 10/01/01.................. 51,338
--------------
70,720
--------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $2,407,973).......... 2,421,834
--------------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (26.3%)
100 U.S. Treasury Bond
6.25% due 08/15/23.................. 92,287
315 U.S. Treasury Bond
6.875% due 08/15/25................. 315,636
150 U.S. Treasury Bond
7.625% due 02/15/25................. 163,924
305 U.S. Treasury Note
5.625% due 11/30/00................. 299,242
500 U.S. Treasury Note
5.75% due 08/15/03.................. 483,530
450 U.S. Treasury Note
6.00% due 08/31/97.................. 451,152
50 U.S. Treasury Note
6.375% due 01/15/99................. 50,441
175 U.S. Treasury Note
6.50% due 05/15/97.................. 175,569
100 U.S. Treasury Note
6.50% due 08/31/01.................. 100,932
515 U.S. Treasury Note
6.50% due 05/15/05.................. 515,912
300 U.S. Treasury Note
6.75% due 04/30/00.................. 305,289
360 U.S. Treasury Note
6.875% due 08/31/99................. 367,135
640 U.S. Treasury Note
7.25% due 05/15/04.................. 670,477
400 U.S. Treasury Note
7.25% due 08/15/04.................. 419,160
350 U.S. Treasury Note
7.50% due 02/15/05.................. 372,449
700 U.S. Treasury Note
7.75% due 12/31/99.................. 730,688
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -------------------------------------------------------------------
<C> <S> <C>
$ 25 U.S. Treasury Note
7.875% due 11/15/99................. $ 26,141
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $5,512,686).......... 5,539,964
--------------
SHORT-TERM INVESTMENTS (10.1%)
U.S. GOVERNMENT AGENCY (a) (9.0%)
1,885 Federal National Mortgage Assoc. 5.28%
due 02/10/97 (Amortized Cost
$1,882,512)......................... 1,882,512
--------------
REPURCHASE AGREEMENT (1.1%)
236 The Bank of New York 5.25% due
02/03/97 (dated 01/31/97; proceeds
$236,527; collateralized by $239,335
U.S. Treasury Note 5.375% due
11/30/97 valued at $241,152)
(Identified Cost $236,423).......... 236,423
--------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $2,118,935).......... 2,118,935
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $17,761,040) (B).......... 98.2% 20,685,931
OTHER ASSETS IN EXCESS OF LIABILITIES...... 1.8 385,937
-------- -----------
NET ASSETS................................. 100.0% $21,071,868
-------- -----------
-------- -----------
<FN>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
(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 approximates identified
cost. The aggregate gross unrealized appreciation is $3,017,391 and the
aggregate gross unrealized depreciation is $92,500, resulting in net
unrealized appreciation of $2,924,891.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
JANUARY 31, 1997 (UNAUDITED)
U.S.
GOVERNMENT U.S. INTERMEDIATE
LIQUID MONEY GOVERNMENT INCOME
ASSET MARKET SECURITIES SECURITIES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value*.... $ 22,199,597 $ 7,386,181 $ 10,370,955 $ 4,478,783
Cash.................................... 13,822 5,561 35,275 23,632
Receivable for:
Investments sold.................... -- -- -- --
Shares of beneficial interest
sold.............................. 14,491 -- 13,996 13,960
Dividends........................... -- -- -- --
Interest............................ -- -- 92,304 85,888
Foreign withholding taxes
reclaimed......................... -- -- -- --
Prepaid expenses and other assets....... 28,434 14,837 20,289 19,993
Deferred organizational expenses........ 2,475 2,630 2,543 2,541
Receivable from affiliate............... 284 11,775 -- 5,874
------------ -------------- -------------- --------------
TOTAL ASSETS....................... 22,259,103 7,420,984 10,535,362 4,630,671
------------ -------------- -------------- --------------
LIABILITIES:
Payable for:
Investments purchased............... -- -- -- --
Shares of beneficial interest
repurchased....................... 2,234,975 1,076 113,434 17,156
Dividends to shareholders........... -- -- 3,279 1,356
Investment management fees.......... 14,702 -- 460 --
Accrued expenses and other payables..... 19,473 16,441 18,518 15,964
Organizational expenses payable......... 5,441 5,596 5,509 5,506
------------ -------------- -------------- --------------
TOTAL LIABILITIES.................. 2,274,591 23,113 141,200 39,982
------------ -------------- -------------- --------------
NET ASSETS:
Paid-in-capital......................... 19,984,500 7,397,867 10,453,359 4,695,636
Accumulated undistributed net investment
income
(accumulated net investment loss)..... 12 4 31 474
Accumulated undistributed net realized
gain (accumulated net realized
loss)................................. -- -- (2,693) (65,272)
Net unrealized appreciation
(depreciation)........................ -- -- (56,535) (40,149)
------------ -------------- -------------- --------------
NET ASSETS......................... $ 19,984,512 $ 7,397,871 $ 10,394,162 $ 4,590,689
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
*IDENTIFIED COST................... $ 22,199,597 $ 7,386,181 $ 10,427,490 $ 4,518,932
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................ 19,984,500 7,397,867 1,067,539 482,400
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
NET ASSET VALUE PER SHARE
(UNLIMITED AUTHORIZED SHARES OF $.01 PAR
VALUE).................................. $1.00 $1.00 $9.74 $9.52
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED GLOBAL
VALUE GROWTH GROWTH UTILITIES MARKET EQUITY STRATEGIST
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value*... $43,864,256 $2,565,859 $87,232,563 $ 5,791,220 $19,502,597 $15,357,126 $20,685,931
Cash................................... 87,987 11,840 36,224 -- 64,061 -- --
Receivable for:
Investments sold................... 326,257 44,107 77,922 -- 450,105 67,173 218,558
Shares of beneficial interest
sold............................. 71,616 67,812 379,319 10,734 14,854 39,929 119,873
Dividends.......................... 28,123 725 103,193 20,222 18,084 6,973 5,880
Interest........................... -- -- -- 185 -- 77 162,341
Foreign withholding taxes
reclaimed........................ 500 -- -- 895 -- 4,737 144
Prepaid expenses and other assets...... 27,334 22,223 43,764 8,938 30,769 28,157 6,694
Deferred organizational expenses....... 2,722 2,722 2,536 2,543 2,722 2,543 2,536
Receivable from affiliate.............. -- 3,678 -- 11,093 -- 6,881 3,421
----------- ---------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS...................... 44,408,795 2,718,966 87,875,521 5,845,830 20,083,192 15,513,596 21,205,378
----------- ---------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for:
Investments purchased.............. 1,047,368 43,477 660,825 -- 655,252 226,212 98,469
Shares of beneficial interest
repurchased...................... 86,757 551 295,628 3,163 451,213 9,959 15,506
Dividends to shareholders.......... -- -- -- -- -- -- --
Investment management fees......... 27,434 -- 53,463 -- 8,743 495 --
Accrued expenses and other payables.... 6,772 7,832 29,123 12,181 6,704 17,970 14,034
Organizational expenses payable........ 5,687 5,687 5,501 5,509 5,687 5,509 5,501
----------- ---------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES................. 1,174,018 57,547 1,044,540 20,853 1,127,599 260,145 133,510
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSETS:
Paid-in-capital........................ 33,773,981 2,189,935 67,192,217 4,638,361 14,125,695 13,679,280 17,955,515
Accumulated undistributed net
investment income
(accumulated net investment loss).... 28,121 (1,584) 98,562 37,986 16,730 8,445 55,639
Accumulated undistributed net realized
gain (accumulated net realized
loss)................................ 2,806,353 115,810 3,834,179 156,612 (7,298) 308,759 135,823
Net unrealized appreciation
(depreciation)....................... 6,626,322 357,258 15,706,023 992,018 4,820,466 1,256,967 2,924,891
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSETS........................ $43,234,777 $2,661,419 $86,830,981 $ 5,824,977 $18,955,593 $15,253,451 $21,071,868
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
*IDENTIFIED COST.................. $37,237,934 $2,208,601 $71,526,540 $ 4,799,202 $14,682,131 $14,099,684 $17,761,040
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING....................... 2,950,043 182,686 5,241,203 450,713 1,209,220 1,234,508 1,551,442
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE PER SHARE
(UNLIMITED AUTHORIZED SHARES OF $.01
PAR VALUE)............................. $14.66 $14.57 $16.57 $12.92 $15.68 $12.36 $13.58
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED)
U.S.
GOVERNMENT U.S. INTERMEDIATE
LIQUID MONEY GOVERNMENT INCOME
ASSET MARKET SECURITIES SECURITIES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME
Interest................................ $ 843,742 $ 219,904 $ 336,367 $ 169,960
Dividends............................... -- -- -- --
------------- ------------- ------------- -------------
TOTAL INCOME....................... 843,742 219,904 336,367 169,960
------------- ------------- ------------- -------------
EXPENSES
Investment management fees.............. 77,849 20,657 33,154 16,945
Transfer agent fees and expenses........ 21,349 3,189 18,497 2,812
Shareholder reports and notices......... 20,708 4,704 3,891 634
Professional fees....................... 8,979 7,796 10,578 8,286
Trustees' fees and expenses............. 2,920 600 335 84
Registration fees....................... 6,180 3,605 6,516 4,259
Custodian fees.......................... 4,148 2,161 2,062 1,355
Organizational expenses................. 1,374 1,374 1,374 1,374
Other................................... 2,235 513 981 1,521
------------- ------------- ------------- -------------
TOTAL EXPENSES..................... 145,742 44,599 77,388 37,270
LESS: AMOUNTS WAIVED/REIMBURSED.... -- (4,505) (26,396) (11,276)
------------- ------------- ------------- -------------
NET EXPENSES....................... 145,742 40,094 50,992 25,994
------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS)....... 698,000 179,810 285,375 143,966
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss)................ -- -- 3,093 (36,460)
Net change in unrealized
appreciation/depreciation............. -- -- 171,093 78,891
------------- ------------- ------------- -------------
NET GAIN........................... -- -- 174,186 42,431
------------- ------------- ------------- -------------
NET INCREASE............................ $ 698,000 $ 179,810 $ 459,561 $ 186,397
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<FN>
- ------------------
* Net of $145, $2,766, $229, $518, $4,862 and $63 foreign withholding tax,
respectively.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND VALUE-ADDED GLOBAL
VALUE GROWTH GROWTH UTILITIES MARKET EQUITY STRATEGIST
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME
Interest............................... $ 82,420 $ 3,432 $ 42,002 $ 29,440 $ 15,771 $ 30,447 $ 316,321
Dividends.............................. 178,488* 6,931 1,179,636* 111,119* 183,238* 67,060* 70,571*
----------- -------- ----------- ----------- ------------ --------- -----------
TOTAL INCOME...................... 260,908 10,363 1,221,638 140,559 199,009 97,507 386,892
----------- -------- ----------- ----------- ------------ --------- -----------
EXPENSES
Investment management fees............. 197,869 10,154 308,607 29,986 46,450 68,419 83,263
Transfer agent fees and expenses....... 32,200 1,489 36,800 8,842 5,437 13,840 24,168
Shareholder reports and notices........ 8,637 395 9,526 1,899 3,101 1,201 2,488
Professional fees...................... 7,360 8,037 7,360 8,130 6,156 6,544 8,004
Trustees' fees and expenses............ 920 2 2,024 195 374 276 429
Registration fees...................... 2,216 3,303 9,885 14,770 3,342 3,063 15,414
Custodian fees......................... 184 2,266 4,001 2,125 7,934 9,958 5,505
Organizational expenses................ 1,374 1,374 1,374 1,374 1,374 1,374 1,374
Other.................................. 315 257 1,089 1,257 214 5,090 1,805
----------- -------- ----------- ----------- ------------ --------- -----------
TOTAL EXPENSES.................... 251,075 27,277 380,666 68,578 74,382 109,765 142,450
LESS: AMOUNTS WAIVED/REIMBURSED... (18,288) (15,330) -- (28,598) -- (41,208) (44,495)
----------- -------- ----------- ----------- ------------ --------- -----------
NET EXPENSES...................... 232,787 11,947 380,666 39,980 74,382 68,557 97,955
----------- -------- ----------- ----------- ------------ --------- -----------
NET INVESTMENT INCOME (LOSS)...... 28,121 (1,584) 840,972 100,579 124,627 28,950 288,937
----------- -------- ----------- ----------- ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain (loss)............... 3,269,210 147,120 4,475,079 287,991 543,322 312,823 199,975
Net change in unrealized
appreciation/depreciation............ 5,549,279 249,094 8,405,099 387,712 2,654,744 685,386 2,030,554
----------- -------- ----------- ----------- ------------ --------- -----------
NET GAIN.......................... 8,818,489 396,214 12,880,178 675,703 3,198,066 998,209 2,230,529
----------- -------- ----------- ----------- ------------ --------- -----------
NET INCREASE........................... $ 8,846,610 $394,630 $13,721,150 $ 776,282 $ 3,322,693 $1,027,159 $ 2,519,466
----------- -------- ----------- ----------- ------------ --------- -----------
----------- -------- ----------- ----------- ------------ --------- -----------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIQUID ASSET U.S. GOVERNMENT MONEY MARKET
---------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JAN. 31, 1997 ENDED JAN. 31, 1997 ENDED
(UNAUDITED) JULY 31, 1996 (UNAUDITED) JULY 31, 1996
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................... $ 698,000 $ 3,416,056 $ 179,810 $ 727,122
Net realized gain (loss)................ -- -- -- --
Net change in unrealized
appreciation/depreciation............. -- -- -- --
------------- ------------- ------------- -------------
NET INCREASE....................... 698,000 3,416,056 179,810 727,122
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income................... (698,030) (3,416,043) (179,808) (727,125)
Net realized gain....................... -- -- -- --
------------- ------------- ------------- -------------
TOTAL.............................. (698,030) (3,416,043) (179,808) (727,125)
------------- ------------- ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales................. 19,377,147 177,956,895 5,408,522 27,880,399
Reinvestment of dividends and
distributions......................... 698,030 3,416,043 179,808 727,125
Cost of shares repurchased.............. (42,843,273) (174,251,486) (4,818,238) (32,674,558)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)............ (22,768,096) 7,121,452 770,092 (4,067,034)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE).......... (22,768,126) 7,121,465 770,094 (4,067,037)
NET ASSETS:
Beginning of period..................... 42,752,638 35,631,173 6,627,777 10,694,814
------------- ------------- ------------- -------------
END OF PERIOD...................... $ 19,984,512 $ 42,752,638 $ 7,397,871 $ 6,627,777
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME..... $ 12 $ 42 $ 4 $ 2
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES ISSUED AND REPURCHASED:
Sold.................................... 19,377,147 177,956,895 5,408,522 27,880,399
Issued in reinvestment of dividends and
distributions......................... 698,030 3,416,043 179,808 727,125
Repurchased............................. (42,843,273) (174,251,486) (4,818,238) (32,674,558)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)................. (22,768,096) 7,121,452 770,092 (4,067,034)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<FN>
- ------------------
* Net Investment Loss
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE INCOME
U.S. GOVERNMENT SECURITIES SECURITIES
----------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JAN. 31, 1997 ENDED JAN. 31, 1997 ENDED
(UNAUDITED) JULY 31, 1996 (UNAUDITED) JULY 31, 1996
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................. $ 285,375 $ 434,937 $ 143,966 $ 218,492
Net realized gain (loss)............... 3,093 18,226 (36,460) (27,045)
Net change in unrealized
appreciation/depreciation............ 171,093 (149,772) 78,891 (116,038)
------------- ------------- ------------- -------------
NET INCREASE...................... 459,561 303,391 186,397 75,409
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income.................. (285,368) (434,913) (143,492) (218,918)
Net realized gain...................... (22,188) -- -- (4,854)
------------- ------------- ------------- -------------
TOTAL............................. (307,556) (434,913) (143,492) (223,772)
------------- ------------- ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales................ 3,623,030 9,506,649 2,902,326 4,840,703
Reinvestment of dividends and
distributions........................ 276,189 433,619 103,515 217,069
Cost of shares repurchased............. (2,307,875) (5,369,758) (2,629,773) (1,731,472)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)........... 1,591,344 4,573,510 376,068 3,326,300
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)......... 1,743,349 4,441,988 418,973 3,177,937
NET ASSETS:
Beginning of period.................... 8,650,813 4,208,825 4,171,716 993,779
------------- ------------- ------------- -------------
END OF PERIOD..................... $ 10,394,162 $ 8,650,813 $ 4,590,689 $ 4,171,716
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME.... $ 31 $ 24 $ 474 $ --
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES ISSUED AND REPURCHASED:
Sold................................... 374,843 971,490 304,857 499,259
Issued in reinvestment of dividends and
distributions........................ 28,401 44,420 10,883 22,618
Repurchased............................ (237,456) (547,637) (276,782) (181,670)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)................ 165,788 468,273 38,958 340,207
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
AMERICAN VALUE CAPITAL GROWTH
----------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JAN. 31, 1997 ENDED JAN. 31, 1997 ENDED
(UNAUDITED) JULY 31, 1996 (UNAUDITED) JULY 31, 1996
<S> <C> <C> <C> <C>
- ---------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................. $ 28,121 $ 244,604 $ (1,584) $ 6,999
Net realized gain (loss)............... 3,269,210 4,355,860 147,120 31,476
Net change in unrealized
appreciation/depreciation............ 5,549,279 (2,487,467) 249,094 45,817
------------- ------------- ------------- -------------
NET INCREASE...................... 8,846,610 2,112,997 394,630 84,292
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income.................. (93,984) (299,827) (2,106) (8,566)
Net realized gain...................... (3,137,375) (2,309,181) (56,080) (4,860)
------------- ------------- ------------- -------------
TOTAL............................. (3,231,359) (2,609,008) (58,186) (13,426)
------------- ------------- ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales................ 11,382,591 21,806,112 642,580 1,518,128
Reinvestment of dividends and
distributions........................ 3,227,638 2,602,757 2,105 13,426
Cost of shares repurchased............. (17,312,067) (6,172,981) (307,563) (292,073)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)........... (2,701,838) 18,235,888 337,122 1,239,481
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)......... 2,913,413 17,739,877 673,566 1,310,347
NET ASSETS:
Beginning of period.................... 40,321,364 22,581,487 1,987,853 677,506
------------- ------------- ------------- -------------
END OF PERIOD..................... $ 43,234,777 $ 40,321,364 $ 2,661,419 $ 1,987,853
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME.... $ 28,121 $ 93,984 $ (1,584)* $ 2,106
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES ISSUED AND REPURCHASED:
Sold................................... 797,724 1,603,955 46,723 119,028
Issued in reinvestment of dividends and
distributions........................ 237,676 203,340 156 1,087
Repurchased............................ (1,168,140) (447,666) (21,878) (23,095)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)................ (132,740) 1,359,629 25,001 97,020
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED
<TABLE>
<CAPTION>
DIVIDEND GROWTH UTILITIES
---------------------------------- -------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JAN. 31, 1997 ENDED JAN. 31, 1997 ENDED
(UNAUDITED) JULY 31, 1996 (UNAUDITED) JULY 31, 1996
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................... $ 840,972 $ 1,244,989 $ 100,579 $ 205,110
Net realized gain (loss)................ 4,475,079 2,317,010 287,991 (13,965)
Net change in unrealized
appreciation/depreciation............. 8,405,099 2,701,826 387,712 257,350
-------------- ----------------- -------------- --------------
NET INCREASE....................... 13,721,150 6,263,825 776,282 448,495
-------------- ----------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income................... (1,092,600) (1,199,564) (95,955) (230,987)
Net realized gain....................... (2,463,125) (590,466) -- --
-------------- ----------------- -------------- --------------
TOTAL.............................. (3,555,725) (1,790,030) (95,955) (230,987)
-------------- ----------------- -------------- --------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales................. 19,135,465 36,503,267 1,751,007 3,456,194
Reinvestment of dividends and
distributions......................... 3,540,696 1,779,713 94,099 227,657
Cost of shares repurchased.............. (15,773,217) (8,398,184) (4,293,753) (1,687,882)
-------------- ----------------- -------------- --------------
NET INCREASE (DECREASE)............ 6,902,944 29,884,796 (2,448,647) 1,995,969
-------------- ----------------- -------------- --------------
TOTAL INCREASE (DECREASE).......... 17,068,369 34,358,591 (1,768,320) 2,213,477
NET ASSETS:
Beginning of period..................... 69,762,612 35,404,021 7,593,297 5,379,820
-------------- ----------------- -------------- --------------
END OF PERIOD...................... $ 86,830,981 $ 69,762,612 $ 5,824,977 $ 7,593,297
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
UNDISTRIBUTED NET INVESTMENT INCOME..... $ 98,562 $ 350,190 $ 37,986 $ 33,362
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
SHARES ISSUED AND REPURCHASED:
Sold.................................... 1,195,742 2,524,798 140,468 288,411
Issued in reinvestment of dividends and
distributions......................... 221,330 126,953 7,622 18,947
Repurchased............................. (949,717) (583,926) (341,268) (141,590)
-------------- ----------------- -------------- --------------
NET INCREASE (DECREASE)................. 467,355 2,067,825 (193,178) 165,768
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VALUE-ADDED MARKET GLOBAL EQUITY STRATEGIST
-------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JAN. 31, ENDED JAN. 31, ENDED JAN. 31, ENDED
1997 JULY 31, 1997 JULY 31, 1997 JULY 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................. $ 124,627 $ 331,372 $ 28,950 $ 84,531 $ 288,937 $ 287,670
Net realized gain (loss)............... 543,322 186,832 312,823 434,795 199,975 730,868
Net change in unrealized
appreciation/depreciation............ 2,654,744 1,044,025 685,386 47,491 2,030,554 291,438
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE...................... 3,322,693 1,562,229 1,027,159 566,817 2,519,466 1,309,976
------------ ------------ ------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income.................. (280,000) (257,479) (70,000) (126,784) (408,001) (244,742)
Net realized gain...................... (698,399) (78,439) (367,529) -- (699,995) (159,285)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL............................. (978,399) (335,918) (437,529) (126,784) (1,107,996) (404,027)
------------ ------------ ------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST:
Net proceeds from sales................ 3,958,153 6,512,239 3,765,167 6,329,119 2,931,556 12,101,707
Reinvestment of dividends and
distributions........................ 948,926 329,833 435,668 121,869 1,107,086 403,090
Cost of shares repurchased............. (8,675,015) (1,769,137) (1,222,257) (2,492,083) (1,873,950) (2,673,732)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)........... (3,767,936) 5,072,935 2,978,578 3,958,905 2,164,692 9,831,065
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)......... (1,423,642) 6,299,246 3,568,208 4,398,938 3,576,162 10,737,014
NET ASSETS:
Beginning of period.................... 20,379,235 14,079,989 11,685,243 7,286,305 17,495,706 6,758,692
------------ ------------ ------------ ------------ ------------ ------------
END OF PERIOD..................... $18,955,593 $ 20,379,235 $15,253,451 $ 11,685,243 $21,071,868 $ 17,495,706
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
UNDISTRIBUTED NET INVESTMENT INCOME.... $ 16,730 $ 172,103 $ 8,445 $ 49,495 $ 55,639 $ 174,703
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
SHARES ISSUED AND REPURCHASED:
Sold................................... 258,723 468,279 307,930 542,027 218,708 972,731
Issued in reinvestment of dividends and
distributions........................ 62,594 24,706 35,887 10,862 83,616 34,364
Repurchased............................ (575,419) (129,743) (100,030) (214,741) (139,138) (218,134)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)................ (254,102) 363,242 243,787 338,148 163,186 788,961
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED)
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 COMMENCEMENT
OF OPERATIONS OF 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
Market liquidity by investing 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
Securities by investing in a 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
Securities by investing 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.
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.
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.
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SERIES INVESTMENT OBJECTIVE
<S> <C>
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.
Strategist Seeks a high total investment return through a fully managed
investment policy utilizing equity securities, investment
grade fixed income and money market securities.
</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 pursuant to procedures adopted
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, including circumstances under which it is determined by Dean Witter
InterCapital Inc. (the "Investment Manager") that sale or bid prices are not
reflective of a security's market value, portfolio securities are valued at
their fair value as determined in good faith under procedures established by and
under the general supervision of the Trustees; (4) certain portfolio securities
may be valued by an outside pricing service approved by the Trustees. The
pricing service may utilize 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
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
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.
Liquid Asset and U.S. Government Money Market amortize premiums and accrete
discounts over the life of the respective securities; 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 each Series
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 foreign currency 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 Series 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 Series 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
Series record realized gains or losses on delivery of the currency or at the
time the forward contract is extinguished (compensated) by entering into a
closing transaction prior to delivery.
E. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply individually
for each Series with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable income to
its shareholders. Accordingly, no federal income tax provision is required.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
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 -- 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
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.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
For the period January 1, 1996 through July 31, 1997, the Investment Manager is
waiving the management fee and reimbursing expenses to the extent they exceed
1.00% of daily net assets of each Series. At January 31, 1997, included in the
Statement of Assets and Liabilities are receivables from an affiliate which
represent expense reimbursements due to the Fund.
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
six months ended January 31, 1997 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
-------------------------- --------------------------
SALES/ SALES/
PURCHASES PREPAYMENTS PURCHASES MATURITIES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Liquid Asset................................. $180,442,813 $179,162,748 $242,226,110 $265,864,628
U.S. Government Money Market................. 360,889,063 360,351,000 -- --
U.S. Government Securities................... 7,654,139 5,599,701 -- --
Intermediate Income Securities............... 1,698,539 2,182,105 1,216,181 598,195
American Value............................... 1,055,258 844,033 48,802,616 48,226,190
Capital Growth............................... -- 11,685 1,898,675 1,678,168
Dividend Growth.............................. -- -- 19,638,456 15,329,898
Utilities.................................... -- -- 2,958,338 4,695,473
Value-Added Market........................... -- 25,783 2,673,436 7,070,141
Global Equity................................ -- 41,056 6,894,081 5,232,908
Strategist................................... 897,492 995,672 5,309,127 4,165,415
</TABLE>
Included at January 31, 1997 in the payable for investments purchased and
receivable for investments sold were unsettled trades with Dean Witter Reynolds
Inc. ("DWR"), an affiliate of the Investment Manager, as follows:
<TABLE>
<CAPTION>
CAPITAL DIVIDEND
GROWTH GROWTH
--------- ---------
<S> <C> <C>
Payable for
investments
purchased.......... $ 4,793 $ 298,775
--------- ---------
--------- ---------
Receivable for
investments sold... -- $ 77,922
--------- ---------
--------- ---------
</TABLE>
Included in the aforementioned purchases and sales of portfolio securities of
Value-Added Market are common stock purchases and sales of Dean Witter Discover
& Co., an affiliate of the Investment Manager, of $7,486 and $15,928,
respectively, including realized gains of $847.
Included in the aforementioned sales of portfolio securities of Capital Growth
are common stock sales of Citizens Utilities Co., an affiliate of the Fund by
virtue of a common Trustee, in the amount of $41,995, including a realized loss
of $2,008.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
For the six months ended January 31, 1997, the following Series incurred
brokerage commissions with DWR, for portfolio transactions executed on behalf of
such Series, as follows:
<TABLE>
<CAPTION>
AMERICAN CAPITAL DIVIDEND GLOBAL
VALUE GROWTH GROWTH UTILITIES EQUITY STRATEGIST
--------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
$ 18,545 $ 647 $23,943 $ 7,840 $ 5,809 $ 1,289
--------- --------- --------- --------- --------- -----------
--------- --------- --------- --------- --------- -----------
</TABLE>
Dean Witter Trust Company, an affiliate of the Investment Manager, is the Fund's
transfer agent. At January 31, 1997 the following Series had approximate
transfer agent fees and expenses payable as follows:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S. INTERMEDIATE
LIQUID MONEY GOVERNMENT INCOME AMERICAN CAPITAL
ASSET MARKET SECURITIES SECURITIES VALUE GROWTH
--------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
$ 4,100 $ 800 $ 3,200 $ 2,800 $ 4,600 $ 130
--------- --------- --------- --------- --------- -----------
--------- --------- --------- --------- --------- -----------
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND VALUE-ADDED GLOBAL
GROWTH UTILITIES MARKET EQUITY STRATEGIST
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
$ 6,600 $1,800 $ 900 $ 2,600 $ 3,900
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</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 Total
------ ------ ------
<S> <C> <C> <C>
Intermediate Income Securities.......... $ -- $5,700 $5,700
Utilities............................... 62,800 39,200 102,000
</TABLE>
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
SECURITIES UTILITIES GLOBAL EQUITY
-------------------- -------------------- --------------------
<S> <C> <C>
$ 23,110 $ 25,929 $ 939
------- ------- -----
------- ------- -----
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1997 (UNAUDITED) CONTINUED
At July 31, 1996, the primary reason(s) for temporary book/tax differences were
as follows:
<TABLE>
<CAPTION>
CAPITAL LOSS DEFERRALS FROM
POST-OCTOBER LOSSES WASH SALES
------------------------------ ------------------------------
<S> <C> <C>
Intermediate Income Securities.................... -
American Value.................................... -
Capital Growth.................................... -
Dividend Growth................................... -
Utilities......................................... - -
Value-Added Market................................ -
Global Equity..................................... - -
Strategist........................................ -
</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 Series 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.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Series 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.
At January 31, 1997, Global Equity had outstanding forward contracts to
facilitate settlement of foreign currency denominated portfolio transactions.
<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 NET
YEAR VALUE INVESTMENT NET REALIZED TOTAL FROM DISTRIBUTIONS TOTAL DIVIDENDS
ENDED BEGINNING INCOME AND UNREALIZED INVESTMENT DIVIDENDS TO TO AND
JULY 31 OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
LIQUID ASSET
1993(1) $ 1.00 $ 0.02 $-- $ 0.02 $(0.02) $-- $(0.02)
1994 1.00 0.03 -- 0.03 (0.03) -- (0.03)
1995 1.00 0.06 -- 0.06 (0.06) -- (0.06)
1996 1.00 0.05 -- 0.05 (0.05) -- (0.05)
1997* 1.00 0.02 -- 0.02 (0.02) -- (0.02)
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)
1997* 1.00 0.02 -- 0.02 (0.02) -- (0.02)
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)
1997* 9.59 0.29 0.17 0.46 (0.29) (0.02) (0.31)
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)
1997* 9.41 0.27 0.11 0.38 (0.27) -- (0.27)
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)
1997* 13.08 0.02 2.82 2.84 (0.04) (1.22) (1.26)
CAPITAL GROWTH
1993(6) 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)
1997* 12.61 0.00 2.29 2.29 (0.01) (0.32) (0.33)
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1997 (unaudited).
++ 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.
(6) February 2, 1993.
(a) Not annualized.
(b) Annualized.
(c) Restated.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS ASSETS
(BEFORE EXPENSES WERE (AFTER EXPENSES WERE
ASSUMED) ASSUMED)
----------------------- -----------------------
NET ASSETS NET NET
NET ASSET TOTAL END OF INVESTMENT INVESTMENT PORTFOLIO
VALUE END INVESTMENT PERIOD INCOME INCOME TURNOVER
OF PERIOD RETURN+ (000'S) EXPENSES (LOSS) EXPENSES (LOSS) RATE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIQUID ASSET
1993(1) $ 1.00 1.77%(a) $ 1,081 1.30%(b) 0.53%(b) 0.14%(b) 3.02%(b) N/A
1994 1.00 3.48 1,524 2.50++ 0.99 -- 3.49 N/A
1995 1.00 5.90 35,631 1.16 4.96 -- 6.12 N/A
1996 1.00 5.44 42,753 0.65 5.05 0.33 5.37 N/A
1997* 1.00 2.28(a) 19,985 0.94(b) 4.48(b) 0.94(b) 4.48(b) N/A
U.S. GOVERNMENT MONEY MARKET
1993(2) 1.00 0.42(a) 125 2.50++ (b) (0.95) (b) 2.13(b) 0.83(b) N/A
1994 1.00 3.52 555 2.50++ 0.82 -- 3.32 N/A
1995 1.00 5.86 10,695 2.50++ 3.62 -- 6.12 N/A
1996 1.00 5.23 6,628 0.82 4.75 0.37 5.21 N/A
1997* 1.00 2.22(a) 7,398 1.08(b) 4.24(b) 1.00(b) 4.32(b) N/A
U.S. GOVERNMENT SECURITIES
1993(3) 10.06 2.60(a) 1,756 1.81(b) 0.33(b) 0.18(b) 3.66(b) --
1994 9.56 (0.69) 2,954 2.50++ 1.96 -- 4.46(c) 29%
1995 9.71 7.72 4,209 2.36 3.49 -- 5.85 14
1996 9.59 4.49 8,651 1.48 4.70 0.63 5.55 47
1997* 9.74 4.68(a) 10,394 1.52(b) 5.09(b) 1.00(b) 5.61(b) 55(a)
INTERMEDIATE INCOME SECURITIES
1993(4) 9.98 1.67(a) 182 2.50++ (b) 1.00(b) 1.62(b) 3.50(b) --
1994 9.41 0.26 460 2.50++ 3.64 -- 6.14 40
1995 9.63 9.22 994 2.50++ 4.08 -- 6.58 37
1996 9.41 3.95 4,172 1.58 5.01 0.72 5.87 142
1997* 9.52 4.06(a) 4,591 1.43(b) 5.09(b) 1.00(b) 5.52(b) 36(a)
AMERICAN VALUE
1993(5) 10.05 0.50(a) 308 2.50++ (b) (0.66) (b) 0.74(b) 1.10(b) 121(a)
1994 9.93 (0.59) 6,841 2.50++ (0.81) -- 1.69 136
1995 13.10 33.48 22,581 1.42 0.39 -- 1.81 234
1996 13.08 9.83 40,321 1.18 0.23 0.65 0.76 301
1997* 14.66 22.41(a) 43,235 1.08(b) 0.04(b) 1.00(b) 0.12(b) 117(a)
CAPITAL GROWTH
1993(6) 8.88 (11.20) (a) 135 2.50++ (b) (1.01) (b) 1.97(b) (0.47) (b) 2(a)
1994 9.42 6.57 215 2.50++ (0.98) -- 1.52 11
1995 11.17 20.08 678 2.50++ (1.07) -- 1.43 20
1996 12.61 14.58 1,988 2.50++ (1.24) 0.76 0.50 68
1997* 14.57 18.36(a) 2,661 2.28(b) (1.41) (b) 1.00(b) (0.13) (b) 78(a)
<CAPTION>
AVERAGE
COMMISSION
RATE PAID
<S> <C>
LIQUID ASSET
1993(1) N/A
1994 N/A
1995 N/A
1996 N/A
1997* N/A
U.S. GOVERNMENT MONEY MARKET
1993(2) N/A
1994 N/A
1995 N/A
1996 N/A
1997* N/A
U.S. GOVERNMENT SECURITIES
1993(3) N/A
1994 N/A
1995 N/A
1996 N/A
1997* N/A
INTERMEDIATE INCOME SECURITIES
1993(4) N/A
1994 N/A
1995 N/A
1996 N/A
1997* N/A
AMERICAN VALUE
1993(5) --
1994 --
1995 --
1996 0.0543
1997* 0.0573
CAPITAL GROWTH
1993(6) --
1994 --
1995 --
1996 0.0536
1997* 0.0582
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1997 (unaudited).
++ 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.
(1) December 30, 1992.
(2) January 20, 1993.
(3) January 8, 1993.
(4) January 12, 1993.
(5) February 1, 1993.
(6) February 2, 1993.
(a) Not annualized.
(b) Annualized.
(c) Restated.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<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 DISTRIBUTIONS TOTAL DIVIDENDS
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO TO AND
JULY 31 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
DIVIDEND GROWTH
1993(1) $ 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)
1997* 14.61 0.17 2.54 2.71 (0.23) (0.52) (0.75)
UTILITIES
1993(2) 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)
1997* 11.79 0.49 1.10 1.59 (0.46) -- (0.46)
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)
1997* 13.93 0.15 2.48 2.63 (0.25) (0.63) (0.88)
GLOBAL EQUITY
1993(2) 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)
1997* 11.79 0.02 0.93 0.95 (0.06) (0.32) (0.38)
STRATEGIST
1993(1) 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)
1997* 12.60 0.19 1.55 1.74 (0.28) (0.48) (0.76)
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1997 (unaudited).
++ 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 7, 1993.
(2) January 8, 1993.
(3) February 1, 1993.
(a) Not annualized.
(b) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET RATIOS TO AVERAGE NET
ASSETS ASSETS
(BEFORE EXPENSES WERE (AFTER EXPENSES WERE
ASSUMED) ASSUMED)
----------------------- -----------------------
NET ASSETS NET NET
NET ASSET TOTAL END OF INVESTMENT INVESTMENT PORTFOLIO
VALUE END INVESTMENT PERIOD INCOME INCOME TURNOVER
OF PERIOD RETURN+ (000'S) EXPENSES (LOSS) EXPENSES (LOSS) RATE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DIVIDEND GROWTH
1993(1) $ 10.61 7.11%(a) $ 2,417 2.50++%(b) 0.61%(b) 0.16%(b) 2.89%(b) 7%(a)
1994 11.02 6.13 12,821 1.51 1.78 -- 3.29 13
1995 13.08 23.07 35,404 1.14 2.34 -- 3.48 29
1996 14.61 16.09 69,763 1.00 2.07 0.63 2.44 18
1997* 16.57 18.70(a) 86,831 0.93(b) 2.04(b) 0.93(b) 2.04(b) 19(a)
UTILITIES
1993(2) 11.35 14.98(a) 1,334 2.50++ (b) 1.59(b) 0.30(b) 3.79(b) 8(a)
1994 10.42 (5.23) 3,860 2.50++ 1.62 -- 4.14 5
1995 11.25 12.16 5,380 1.91 2.41 -- 4.32 24
1996 11.79 8.76 7,593 1.52 2.31 0.62 3.20 17
1997* 12.92 11.19(a) 5,825 1.72(b) 1.80(b) 1.00(b) 2.52(b) 44(a)
VALUE-ADDED MARKET
1993(3) 10.03 0.71(a) 640 2.50++ (b) (0.16) (b) 0.92(b) 1.42(b) 1(a)
1994 10.81 8.89 5,133 1.82 0.70 -- 2.53 8
1995 12.80 22.65 14,080 1.22 1.33 -- 2.55 7
1996 13.93 11.19 20,379 0.78 1.58 0.47 1.89 8
1997* 15.68 19.12(a) 18,956 0.80(b) 1.34(b) 0.80(b) 1.34(b) 15(a)
GLOBAL EQUITY
1993(2) 10.04 0.40(a) 322 2.50++ (b) (0.90) (b) 1.00(b) 1.77(b) --
1994 10.65 6.54 2,020 2.50++ 0.09 -- 2.41 8
1995 11.17 6.08 7,286 2.25 0.48 -- 2.73 55
1996 11.79 7.26 11,685 1.73 (0.15) 0.66 0.92 95
1997* 12.36 8.11(a) 15,253 1.60(b) (0.18) (b) 1.00(b) 0.42(b) 42(a)
STRATEGIST
1993(1) 9.83 (1.70) (a) 551 2.50++ (b) (0.19) (b) 0.64(b) 1.67(b) 26(a)
1994 9.73 0.12 1,276 2.50++ 0.70 -- 3.20 57
1995 11.28 18.21 6,759 2.14 1.97 -- 4.11 115
1996 12.60 16.97 17,496 1.61 1.92 0.66 2.86 113
1997* 13.58 14.01(a) 21,072 1.45(b) 2.50(b) 1.00(b) 2.95(b) 30(a)
<CAPTION>
AVERAGE
COMMISSION
RATE PAID
<S> <C>
DIVIDEND GROWTH
1993(1) --
1994 --
1995 --
1996 0.0526
1997* 0.0526
UTILITIES
1993(2) --
1994 --
1995 --
1996 0.0508
1997* 0.0498
VALUE-ADDED MARKET
1993(3) --
1994 --
1995 --
1996 0.0300
1997* 0.0300
GLOBAL EQUITY
1993(2) --
1994 --
1995 --
1996 0.0500
1997* 0.0424
STRATEGIST
1993(1) --
1994 --
1995 --
1996 0.0525
1997* 0.0552
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1997 (unaudited).
++ After application of the Fund's expense limitation.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) January 7, 1993.
(2) January 8, 1993.
(3) February 1, 1993.
(a) Not annualized.
(b) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES SEMIANNUAL REPORT
Michael Bozic JANUARY 31, 1997
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire DEAN WITTER
Dr. Manuel H. Johnson RETIREMENT SERIES
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Barry Fink
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
The financial statements included herein have been taken from the
records of the Fund without examination by the independent
accountants and accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders of
the Fund. For more detailed information about the Fund, its officers
and trustees, fees, expenses and other pertinent information, please
see the prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
