<PAGE>
DEAN WITTER RETIREMENT SERIES TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998
DEAR SHAREHOLDER:
We are pleased to present the semiannual report on the operations of Dean Witter
Retirement Series for the six-month period ended January 31, 1998.
Overall, the stock market was very generous to investors in 1997. However, in
August the Dow Jones Industrial Average appeared to have peaked at 8,340.
Bellwether multinational corporations such as
Coca Cola began to guide earnings estimates downward for the first time in many
years on the basis of slower growth and the currency impact from the turmoil in
Asia. While the NASDAQ Composite and Mid-Cap indexes peaked in early October,
and the Standard & Poor's 500 Composite Stock Price Index (S&P 500) peaked in
early December, uncertainty grew regarding earnings outlooks. Despite a flat to
down fourth quarter for the various indexes, the stock market, as measured by
the Dow Jones Industrial Average, increased by more than 20 percent for the
third year in a row for the first time ever. As year-end approached,
historically defensive sectors such as consumer goods and utilities outperformed
the overall market, while cyclical stocks lagged.
Over the past year the U.S. economy exhibited healthy growth with declining
inflation and strong employment growth. In this environment the Federal Reserve
Board periodically expressed concern that inflationary pressures could be on the
rise. However, inflation remains in check. Accordingly, the Federal Reserve
Board has left interest rates unchanged since March.
Demand for U.S. Treasury securities and the U.S. dollar increased as the crisis
in Asia induced an investor flight-to-quality. With many of the Southeast Asian
economies in turmoil, 1998 may see the United States inherit the deflationary
aspect of those markets. According to many analysts, this could benefit the
disinflationary trend here.
Real interest rates (market interest rates less inflation) in the United States
remain above historical norms. A realization of this situation by
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
investors, combined with the probability of a surplus in the U.S. budget
(leading to a reduction in the issuance of U.S. Treasury securities in 1998),
could cause interest rates to continue to decline in the months to come.
In mid-summer, Asian currencies with values pegged to the U.S. dollar came under
intense speculative attack. After sacrificing considerable reserves in an
attempt to defend the fixed levels, central banks succumbed to the pressure and
let their currencies float. These currencies then declined sharply relative to
the dollar. Thailand triggered the crisis in July. Next the Philippines was
affected, then Malaysia and Indonesia continued the trend in August. Hong Kong
and the northeastern Asian countries appeared to be able to overcome the crisis,
but pressure reemerged in October. Taiwan permitted a small further depreciation
in its currency. The result was a sharp upward movement in Hong Kong interest
rates, which severely affected its stock market given the significant exposure
to bank and real-estate-related stocks. By the end of 1997 Korea had also
succumbed to the currency assault.
Not one market was spared from the Asian crisis, not even the United States.
Fears that the Federal Reserve Board might increase interest rates were
virtually eliminated by the severity of financial disruptions in Asia. The
turmoil in Asia brought with it a flight to quality into U.S. government
securities and fears of a negative impact on the U.S. economy as its competitive
pricing edge eroded. Furthermore, the Asian crisis caused concern as to whether
demand for U.S. products would slow as well, eventually weakening the U.S.
economy. Higher interest rates would exacerbate the Asian currency situation by
making U.S.-dollar-denominated assets even more attractive. As the period
progressed, investor sentiment shifted once again toward the increased
probability of a move to lower interest rates. These factors combined to push
interest rates on intermediate and longer maturities down far more than
shorter-term securities. On January 30, 1998, 10-year Treasury notes were
yielding 5.51 percent compared to 5.31 percent for two-year notes and 5.22
percent for six-month bills. While 10-year notes had declined 50 basis points
over the six-month period under review, six-month bills were down only 9 basis
points, pointing to a continued complacency over future inflation.
After rising by about 25 basis points late in the first quarter of 1997, money
market yields held remarkably stable during the remainder of the year and
through January 1998. The target rate for federal funds remained constant at 5.5
percent from March 25, 1997, through the end of January. Overall economic
conditions in the United States continue to be excellent, with inflation
remaining quite moderate. The unemployment rate reached a 24-year low during the
year.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
Despite Europe's sharp falls in October following the currency crisis in Asia,
European markets generally made a steady recovery during November and December.
Overall, 1997 was characterized by significant improvement in the economic
environment across Europe. In the United Kingdom low interest rates combined
with low inflation to result in strong economic growth and falling unemployment.
During the second half of the year Latin American markets, particularly Brazil
and Argentina, suffered as a result of turmoil in the Asian emerging markets.
Nevertheless, generally healthy economies and continued privatization programs
provided investors with a higher degree of confidence that these markets would
not be fundamentally disturbed by the situation in Asia.
LIQUID ASSET SERIES
As of January 31, 1998, Liquid Asset Series had assets of approximately $15
million, with an average maturity of 10 days. The Series' annualized net
investment income for the period under review was 4.61 percent.
On January 31, 1998, approximately 82 percent of the portfolio of the Liquid
Asset Series were invested in federal agency obligations and 18 percent in
high-quality commercial paper. One hundred percent of the Series' assets were
due to mature within one month.
We believe that Liquid Asset Series remains well positioned to meet its
objective of stability of principle. The Series continues to be operated in a
straight-forward, conservative style without structured notes or derivatives,
which could fluctuate excessively when interest rates change.
We do not expect the yields available in the money market in early 1998 to
differ dramatically from those available during the second half of 1997.
U.S. GOVERNMENT MONEY MARKET SERIES
As of January 31, 1998, the U.S. Government Money Market Series had net assets
totaling approximately $1.3 million, with an average maturity of 9 days. The
Series' annualized net investment income for the six-month period under review
was 4.53 percent. The Series' 30-day annualized yield for January was 4.48
percent.
On January 31, 1998, approximately 96 percent of U.S. Government Money Market
Series' assets were invested in federal agency obligations, with the remaining 4
percent invested in U.S. Treasury bills. One hundred percent of the portfolio's
assets were due to mature within one month.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
We believe the Series is well positioned to meet its objective of security of
principal, high current income and liquidity. We continue to operate the
portfolio in a straight-forward, conservative style without structured notes or
derivatives, which could fluctuate excessively when interest rates change.
We do not expect the yields available in the money market in early 1998 to
differ dramatically from those available during the second half of 1997.
U.S. GOVERNMENT SECURITIES SERIES
For the six-month period ended January 31, 1998, the U.S. Government Securities
Series provided a total return of 4.53 percent compared to a total return of
4.53 percent for the Lipper Analytical Services, Inc. General U.S. Government
Funds Index and 5.39 percent for the Lehman Brothers General U.S. Government
Funds Index. The Series' performance includes income distributions totaling
$0.290996 per share and a change in net asset value from $9.91 per share on July
31, 1997, to $10.06 per share at the end of the period. On January 31, 1998, the
Series had net assets in excess of $9.1 million. Performance for the fiscal year
reflected the volatility of the market and the overall declining interest-rate
environment in 1997.
As of January 31, 1998, 81 percent of the Series' portfolio was invested in
Government National Mortgage Association mortgage-backed securities (GNMAs). The
balance of the Series' portfolio was invested in U.S. Treasury securities (19
percent). The Series' average duration stood at approximately 5.0 years.
(Duration measures a bond fund's sensitivity to interest-rate fluctuations.)
We believe that GNMAs continue to offer significant long-term value. Also, in
the current investment environment, they provide not only an incremental yield
incentive over U.S. Treasury securities of similar maturity, but also the
potential for attractive returns.
INTERMEDIATE INCOME SECURITIES SERIES
For the six-month period ended January 31, 1998, the Intermediate Income Series
had a total return of 3.92 percent. This compares to a total return of 4.13
percent for the Lipper Analytical Services Intermediate Investment Grade Funds
Index, and 4.16 percent for the Lehman Intermediate Government Corporate Bond
Index.
The Series' performance during the six-month period under review was reflective
of the fall in interest rates. The Series was negatively affected by the
inability of its corporate holdings to perform as well as comparable Treasury
maturities in the second part of the period. This is attributable primarily to
anticipated fall-out from Asia onto U.S. corporations. Corporate performance was
also constrained in January, from the impact on prices for outstanding debt of a
record amount of new
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
issues coming to market. As a result, the three new securities purchased by the
Series during the period, Citicorp, Dupont (E.I.) de Nemours & Co., Inc. and
Salomon, Inc. (which account for approximately 14 percent of net assets),
underperformed comparable Treasuries by 5 to 15 basis points, despite their
strong creditworthiness. All three issues were rated at least "A" by the major
rating services.
The Series' performance was aided by several transactions that resulted in a
modest inter-period extension of maturity. This allowed the Series to benefit,
to a greater extent, from the decline in interest rates. The Series also reduced
its Treasury and utility holdings, while investments in the bank and finance
sectors were increased. Temporary cash reserves were reduced early in the period
and ended January at 3.5 percent of net assets compared to 7.7 percent on July
31, 1997.
On January 31, 1998, U.S. Treasuries comprised approximately 26 percent of the
portfolio's holdings, with corporates accounting for the remainder (74 percent).
The average maturity of the Series, including cash reserves, was 5.07 years, the
average duration 3.97 years (duration gives investors an idea of a bond
portfolio's sensitivity to interest rate fluctuations). The average quality
rating was "A2." For the six-month period the Series paid dividends of $0.264433
per share.
AMERICAN VALUE SERIES
For the six-month period ended January 31, 1998, the American Value Series
produced a total return of 5.52 percent compared to 3.55 percent for the
Standard & Poor's 500 Composite Stock Price Index (S&P 500) and 3.18 percent for
the Lipper Analytical Services Inc. Growth Funds Index.
Based on recent analysis, the Series' portfolio manager expects U.S. economic
growth to slow to the 2.25 percent range in 1998, with earnings in the vicinity
of 5 percent. When earnings growth slips below the 10 percent range, the
market's leadership typically shifts from economically sensitive issues to
steady growth ones. In response, the Series has been tilted in this direction so
that steady growth stocks currently represent 60 percent of net assets.
On the cyclical side, the Series' 17.6 percent weighting in technology stocks
emphasizes software and services, which are more stable than other technology
sectors during economic slowdowns. Holdings in this area include Microsoft
Corp., Computer Associates International, Inc. and BMC Software, Inc. As of
January 31, 1998, the Series had a 8.1 percent weighting in retail stocks, which
is expected to be bolstered by a low unemployment level below 4.7 percent, and
by real wage growth and lower sourcing costs. The Series' retail positions
include Wal-Mart Stores, Inc. and Barnes & Noble, Inc.
On the growth side, the Series has increased its consumer staples weighting to
11.0 percent of net assets, emphasizing industries and companies with little or
no South American or Asian exposure.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
This sector includes food chains such as Safeway, Inc., drugstores like Rite Aid
Corp., and such selected food companies as Nabisco Holdings Corp. In the
consumer/business services area, the Series continues to hold 12.5 percent of
its net assets in the radio/cable and newspaper industries. Commitments in these
sectors include Clear Channel Communications, Inc., CBS Corp., Comcast Corp. and
Gannett Co., Inc.
Health care, which remains overweighted in the Series at 16.6 percent, reflects
an emphasis on drugs, biotechnology and medical devices -- all industries with
patent protection and pricing power. Companies in these areas include Lilly
(Eli) & Co., Pfizer, Inc., Centocor, Inc. and Guidant Corp. The Series has also
maintained an overweighted position in interest-rate sensitive stocks, as
evidenced by its 18.6 percent commitment to the financial sector, where the
focus is on regional banks, brokerage houses, government agencies and utilities.
A sample of some of these holdings includes Summit Bancorp, Travelers Group,
Inc., and Fannie Mae.
Because an economic backdrop that is typically associated with falling interest
rates and more difficult corporate earnings is expected to remain in place, we
have established a four percent position in long-term U.S. Treasuries.
CAPITAL GROWTH SERIES
For the six-month period ended January 31, 1998, the Capital Growth Series
produced a return of -3.37 percent. This compares to a return of 3.55 percent
for the S&P 500 Index and a return of 3.18 percent for the Lipper Analytical
Services Growth Funds Index. Net assets of the Capital Growth Series totaled
slightly more than $3.1 million as of the end of the period. At that time the
Series owned 51 stocks.
The Series' weightings in small- and mid-cap stocks helped its performance
during the first quarter of 1997. However, with the stock market setback late in
1997, many small- and mid-cap issues failed to match the performance of
large-cap stocks recorded during the second quarter. Though the Series
outperformed the S&P 500 in the first half of the year, its greater than 50
percent exposure to mid-and small-cap stocks resulted in its underperforming the
index in the second half of the year. Additionally, many of the Series' holdings
in the mid-cap area were in the technology and oil-service sectors, among the
two areas that saw most of the significant price declines during the second
quarter of 1997. Both of these sectors had been overweighted. Earnings
disappointments in a few key companies also dampened performance.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
We remain optimistic regarding Capital Growth Series' prospects for 1998. Stocks
in the portfolio are expected to have nearly a 30 percent earnings per share
growth rate for 1998 over 1997 and continue to have a very high return on equity
of approximately 20 percent, with a beta that is not much greater than that of
the overall markets.
DIVIDEND GROWTH SERIES
For the six-month period ended January 31, 1998, Dividend Growth Series had a
total return of 0.88 percent, compared to a total return of 3.55 percent for the
S&P 500 and 2.37 percent for the Lipper Analytical Services, Inc. Growth and
Income Funds Index. The Series' underperformance of its broad market indices was
in large part due to exceptional strength in technology stocks at times, a
sector which affords little or no current yield, and the Series' underweighting
in financial stocks.
Net assets of Dividend Growth Series totaled approximately $106 million on
January 31, 1998. As of January 31, 1998, the Series owned 38 equity issues
spread across 30 different industry groups. One new portfolio position was
established since our last report on July 31, 1997. A spinoff (a divestiture in
which a parent company establishes a subdivision or separate corporation) from
PepsiCo, Inc. during the period resulted in the receipt of shares of Tricon
Global Restaurants, Inc. These shares were subsequently liquidated.
UTILITIES SERIES
For the period ended January 31, 1998, the first half of the fiscal year, the
Utilities Series provided a total return of 14.05 percent compared to a total
return of 13.31 percent for the average Lipper Analytical Services Utility Funds
Index and 3.55 percent for the broad-based S&P 500.
During the past year, utilities benefited from a blend of improving industry
fundamentals, a favorable interest-rate environment and ongoing industry-wide
merger and acquisition activities. However, a primary event underpinning the
strong performance of the Series during the period was the Southeast Asian
economic crisis, which prompted a highly defensive investment mode in the U.S.
market.
Given this utility-friendly investment environment, electric utilities were the
primary beneficiaries of the cautious financial markets, with much of the
impetus being a flight to quality and safety. Additionally, electric utilities
continued to witness fair and balanced deregulation initiatives by many state
utility commissions, which tempered investors concerns and strengthened
shareholder confidence in this sector. Electric utility merger and acquisition
activity was consistently evident throughout the year as many companies enhanced
their earnings outlooks and expanded their product offerings and global presence
in preparation for the new competitive environment. The
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
telecommunications sector also showed very healthy performance, benefiting from
numerous merger and acquisition announcements. Furthermore, the telecom sector
overall showed robust earnings growth, fueled by a strong economy and
high-growth applications including wireless communications, data and selective
international investments. While natural gas pricing was adversely effected by
mild weather patterns toward the end of the year, the sectors overall market
performance was enhanced by a combination of industry-wide merger activity and
an expansion of diversified deregulated businesses.
Against this backdrop, the Utilities Series maintained a fully invested posture,
reflecting the underlying defensive theme across the financial markets.
Additionally, investor confidence continued to strengthen, due to the tempering
of regulatory concerns and more visible growth fundamentals within the utility
sectors. On January 31, 1998, 96 percent of the Series' assets were allocated to
utility and utility-related equities with 4 percent held in cash. Within the
equity component of the portfolio, 52 percent of assets were allocated to
electric utilities, 25 percent to telecommunications and 19 percent to natural
gas. Enhancing overall Series diversification are selective foreign securities,
which account for 5 percent of assets, and a focus on the growth area of global
telecommunications infrastructure.
We believe the Series remains uniquely diversified and structured to meet its
objective of providing shareholders with above average current income and
long-term growth of income and capital. Given the focus on Energy and
Telecommunications, the Utilities Series is well positioned to benefit from the
worldwide growth coming from globalization, privatization and strong product
demand.
VALUE-ADDED MARKET SERIES
For the six-month period ended January 31, 1998, the Value-Added Series produced
a total return of 1.52 percent compared to 3.55 percent for the S&P 500 and 2.37
percent for the Lipper Analytical Services, Inc. Growth and Income Funds Index.
While the Series outperformed the S&P 500 during the third quarter of 1997, it
fell behind in the fourth quarter as both small-cap and cyclical stocks came
under pressure. Since inception on February 1, 1993, the Series has posted an
average annual total return of 16.8 percent.
The Series invests in substantially all the stocks included in the S&P 500.
Unlike the index, the Series weights all stock positions equally, thereby
emphasizing the stocks of smaller- to medium-capitalized companies, which causes
performance to differ from that of the S&P 500 Index.
Historically, the strategy employed by the Series has led to strong relative
returns during periods when small-cap stocks have outperformed larger ones.
However, over the past three years large-capitalization stocks have been market
leaders overshadowing the solid returns provided by small-
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
and mid-cap stocks. We believe that we are now at a point in the economic cycle
where small caps may once again be positioned to outperform. Many relative
valuation measures, such as price-to-book, dividend yield and price-to-earnings
ratios, suggest that small-cap issues are currently undervalued relative to
large caps.
In addition, a continued strong U.S. dollar should reduce the relative earnings
growth of large multinationals, thus making small- and mid-caps more attractive.
Finally, because of the Asian currency crisis, investors in emerging markets may
decide to reconsider the attractiveness of the domestic small- and mid-cap
sectors. Such a scenario is expected to bode well for the equally weighted
strategy employed by the Series.
GLOBAL EQUITY SERIES
For the six-month period ended January 31, 1998, the Global Equity Series had a
total return of -6.07 percent. This compares to a total return of -3.59 percent
for the Lipper Analytical Services Global Funds Index, a return of 3.55 percent
for the S&P 500 and a return of -2.07 for the Morgan Stanley Capital
International World Index (MSCI Index).
As stated earlier, global markets in general were captivated by the widespread
plunge in Asian markets on the back of intense currency devaluations and ensuing
economic turmoil in that part of the world. Most Asian markets dropped between
60 and 70 percent, with Indonesia and Korea being hit the hardest. Even the Hong
Kong market, whose currency has not fluctuated in value, declined 44.5 percent
and the Japanese market disappointed investors again, falling 21.6 percent.
Japan's fragile economy slowed after the reversal of an income tax rebate and a
hike in its consumption tax. Investors also focused on the fragility of Japan's
financial system and the loss of credibility among politicians dealing with the
economic slump.
The European equity markets, with the dual catalysts of weak domestic currencies
and positive sentiment toward Economic and Monetary Union (EMU), mirrored the
U.S. market's rally. The following countries had exceptionally strong
performance during the period under review: Italy (24.90 percent), Spain (17.84
percent), Switzerland (11.95 percent) and the United Kingdom (10.90 percent).
The following core European markets lagged behind: France (3.78 percent),
Germany (-0.37 percent) and the Netherlands (-4.59 percent).
The Series' underperformance versus the MSCI Index is attributable to its
geographic allocation, which had more significant exposure to Japan and Asia
than the index. In response to the continuing market decline in Japan and the
economic crisis in the rest of Asia, the Series has since reduced
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
exposure to those markets. The Series' asset allocation targets now are 38
percent of net assets in Europe, 35 percent in the United States, 6 percent in
Japan, emerging Asia and Latin America and 1 percent in other markets deemed to
be attractive. The balance will be held in cash.
STRATEGIST SERIES
The Strategist Series posted a total return of 0.28 percent for the six-month
period ended January 31, 1998, versus 2.94 percent for the Lipper Analytical
Services Flexible Funds Index. Over the same period, the S&P 500 posted a total
return of 3.55 percent and the Lehman Brothers Government/Corporate Bond Index
posted a total return of 5.12 percent.
The Series' underperformance for the period under review, August 1997 to January
1998, was due to our asset allocation, which favored stocks and underweighted
bonds. For the six-month period, the Strategist Series maintained an asset
allocation target of 70 percent equities, 20 percent U.S. government and
corporate bonds and 10 percent cash equivalents. This was a change from the
first half of 1997 when the Series was positioned at roughly a 50 percent/50
percent stock and bond/cash blend. The move was made because of our view that
corporate earnings growth would continue at an above average pace, therefore
leading us to take a more aggressive approach toward the equity markets. The
untimely currency crises in Indonesia, Singapore, Malaysia, and Thailand had the
compounding negative effect of pummeling technology stocks and causing a rapid
and significant flight to quality bond rally.
While the outperformance of bonds tied to the Asian Pacific crisis may have
affected our strategy during the second half of the year, January 1998 has been
a good month for the equity market. We would expect this trend to continue
through the first quarter of 1998, at the very least, and provide improved
returns to our shareholders based on our current allocation target.
The equity portion of the portfolio features an emphasis on the U.S. consumer,
who is enjoying unprecedented financial liquidity tied to low unemployment and
declining mortgage rates. We hold a number of retailers (Pier 1 Imports, Inc.
and Kmart Corp.), consumer products companies (Colgate-Palmolive Co. and Kellogg
Co.) and leisure-time service providers (Walt Disney Co.). The Series also holds
significant exposure to technology, financial services and energy stocks.
The fixed-income portion of the portfolio is well diversified among both
government and corporate issuers, varying in maturities, interest rates and
duration. At the end of the period, the Series' bond portfolio (21 issues in
all) had an average maturity of 9 1/4 years, an average yield of 6.25 percent
and an average duration of 5 1/3 years.
<PAGE>
DEAN WITTER RETIREMENT SERIES
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED
As the equity market continues to outperform other asset classes, we will
gradually seek opportunities to decrease our exposure to stocks and raise our
weightings to bonds and cash, protecting profits while continuing to seek
attractive long-term total returns.
LOOKING AHEAD
We expect U.S. economic growth to remain relatively healthy in early 1998, with
the Federal Reserve Board unlikely to raise interest rates. However, the central
bank may need to reassess its current complacent stance on monetary policy
during the year, should inordinately strong economic growth cause an
unacceptable increase in inflation.
Asia's reestablishment of currency stability is paramount in order for the
region's stock markets to make a sustainable recovery. Although the situation in
Asia and its impact on European corporate earnings will continue to be monitored
carefully, the underlying fundamentals of the European markets remain positive.
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, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL YIELD ON
AMOUNT IN DATE OF MATURITY
THOUSANDS PURCHASE DATE VALUE
- ------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (18.5%)
AUTOMOTIVE - FINANCE (8.3%)
$ 700 Chrysler Financial Corp.................................... 5.50% 02/12/98 $ 698,721
500 Ford Motor Credit Co....................................... 5.50 02/13/98 499,012
-----------
1,197,733
-----------
FINANCE - COMMERCIAL (3.4%)
500 CIT Group Holdings, Inc.................................... 5.50 02/27/98 497,953
-----------
FINANCE - CONSUMER (3.4%)
500 American Express Credit Corp............................... 5.51 02/20/98 498,478
-----------
FINANCE - DIVERSIFIED (3.4%)
500 General Electric Capital Corp.............................. 5.50 02/06/98 499,543
-----------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $2,693,707)............................................................... 2,693,707
-----------
U.S. GOVERNMENT AGENCIES (82.0%)
1,920 Federal Farm Credit Bank................................... 5.43-5.45 02/04/98-02/18/98 1,916,911
5,255 Federal Home Loan Mortgage Corp............................ 5.44-5.57 02/02/98-02/04/98 5,253,204
1,770 Federal National Mortgage Association...................... 5.42-5.44 02/09/98-02/25/98 1,765,271
1,000 Student Loan Marketing Association......................... 5.39 02/02/98 999,701
2,000 Tennessee Valley Authority................................. 5.39 02/11/98 1,996,712
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $11,931,799).............................................................. 11,931,799
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(AMORTIZED COST $14,625,506) (a)........................................................... 100.5 % 14,625,506
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS............................................. (0.5) (71,178)
------ ------------
NET ASSETS................................................................................. 100.0 % $ 14,554,328
------ ------------
------ ------------
</TABLE>
- ---------------------
(a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - U.S. GOVERNMENT MONEY MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (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 (95.3%)
$ 520 Federal Farm Credit Bank.................................... 5.41-5.37% 02/04/98-02/11/98 $ 519,377
520 Federal Home Loan Banks..................................... 5.39 02/11/98 519,147
240 Federal Home Loan Mortgage Corp............................. 5.57 02/02/98 239,926
----------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $1,278,450)................................................................ 1,278,450
----------
U.S. GOVERNMENT OBLIGATION (3.7%)
50 U.S. Treasury Bill
(AMORTIZED COST $49,964).................................. 5.32 02/05/98 49,964
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(AMORTIZED COST $1,328,414) (a)............................................................. 99.0 % 1,328,414
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.............................................. 1.0 13,475
------ -----------
NET ASSETS.................................................................................. 100.0 % $ 1,341,889
------ -----------
------ -----------
</TABLE>
- ---------------------
(a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS (98.2%)
Government National Mortgage Assoc. I (69.0%)
$ 2,569 ...................................................................... 7.00% 11/15/23-03/15/27 $2,607,904
3,588 ...................................................................... 7.50 01/15/24-01/15/27 3,694,826
----------
6,302,730
----------
932 Government National Mortgage Assoc. II (10.3%).......................... 7.00 03/20/26 943,806
----------
900 Resolution Funding Corp Zero Coupon Strips (5.9%)....................... 0.00 04/15/07 534,384
----------
U.S. Treasury Notes (13.0%)
100 ...................................................................... 5.625 01/31/98 99,969
1,050 ...................................................................... 6.375 09/30/01 1,083,201
----------
1,183,170
----------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(IDENTIFIED COST $8,706,194)....................................................................... 8,964,090
----------
SHORT-TERM INVESTMENT (1.7%)
REPURCHASE AGREEMENT
158 The Bank of New York
(dated 01/30/98;
proceeds $158,237) (a)
(IDENTIFIED COST $158,166)............................................ 5.375 02/02/98 158,166
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $8,864,360) (b)..................................................................... 99.9 % 9,122,256
OTHER ASSETS IN EXCESS OF LIABILITIES................................................................ 0.1 6,187
------ -----------
NET ASSETS........................................................................................... 100.0 % $ 9,128,443
------ -----------
------ -----------
</TABLE>
- ---------------------
(a) Collateralized by $115,874 U.S. Treasury Bond 8.75% due 08/15/20 valued at
$161,330.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $264,269 and the
aggregate gross unrealized depreciation is $6,373, resulting in net
unrealized appreciation of $257,896.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (69.9%)
AUTOMOBILE - RENTALS (4.4%)
$ 100 Hertz Corp....................................................................... 6.00% 01/15/03 $ 99,883
----------
AUTOMOTIVE - FINANCE (1.2%)
25 General Motors Acceptance Corp................................................... 8.40 10/15/99 26,049
----------
BANK HOLDING COMPANIES (4.6%)
100 Citicorp......................................................................... 7.125 09/01/05 104,775
----------
BANKS (10.9%)
100 Bank One Corp.................................................................... 7.60 05/01/07 108,623
100 Shawmut Bank Connecticut, N.A.................................................... 8.625 02/15/05 112,915
25 Star Bank N.A.................................................................... 6.375 03/01/04 25,207
----------
246,745
----------
BROKERAGE (9.0%)
100 Bear Stearns Companies, Inc...................................................... 6.75 08/15/00 101,909
100 Salomon, Inc..................................................................... 6.50 03/01/00 101,019
----------
202,928
----------
CHEMICALS - DIVERSIFIED (4.5%)
100 Dupont (E.I.) de Nemours & Co., Inc.............................................. 6.50 09/01/02 102,621
----------
CHEMICALS - SPECIALTY (4.5%)
100 Millennium America, Inc.......................................................... 7.00 11/15/06 101,489
----------
DATA PROCESSING (4.6%)
100 Oracle Corp...................................................................... 6.91 02/15/07 103,316
----------
FINANCIAL (9.1%)
100 Ikon Capital Inc................................................................. 6.73 06/15/01 102,350
100 Nac Re Corp...................................................................... 8.00 06/15/99 102,820
----------
205,170
----------
FOREIGN GOVERNMENT (4.4%)
100 State of Israel.................................................................. 6.375 12/15/05 98,683
----------
LEISURE (4.8%)
100 Royal Caribbean Cruises.......................................................... 8.25 04/01/05 109,214
----------
MANUFACTURING (2.2%)
50 Reebok International Ltd. (United Kingdom)....................................... 6.75 09/15/05 50,081
----------
PAPER & FOREST PRODUCTS (4.5%)
100 Noranda Forest, Inc. (Canada).................................................... 6.875 11/15/05 102,122
----------
TEXTILES (1.2%)
25 Burlington Industries, Inc....................................................... 7.25 09/15/05 25,896
----------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $1,537,322)........................................................................ 1,578,972
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - INTERMEDIATE INCOME SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (24.8%)
$ 100 U.S. Treasury Note............................................................... 6.125% 03/31/98 $ 100,112
100 U.S. Treasury Note............................................................... 6.625 06/30/01 103,776
300 U.S. Treasury Note............................................................... 5.875 11/30/01 304,776
50 U.S. Treasury Note............................................................... 6.25 01/31/02 51,480
----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $549,070).......................................................................... 560,144
----------
SHORT-TERM INVESTMENT (a) (3.3%)
U.S. GOVERNMENT AGENCY
75 Federal Home Loan Mortgage Corp.
(AMORTIZED COST $74,989)....................................................... 6.00 02/02/98 74,989
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $2,161,381) (b)...................................................................... 98.0 % 2,214,105
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES........................................................ 2.0 45,526
------ -----------
NET ASSETS............................................................................................ 100.0 % $ 2,259,631
------ -----------
------ -----------
</TABLE>
- ---------------------
(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 $54,790 and the
aggregate gross unrealized depreciation is $2,066, resulting in net
unrealized appreciation of $52,724.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (93.5%)
AGRICULTURE RELATED (0.9%)
2,000 Dekalb Genetics Corp. (Class B)......................................................... $ 54,750
7,333 Delta & Pine Land Co.................................................................... 219,990
2,000 Pioneer Hi-Bred International, Inc...................................................... 200,125
-----------
474,865
-----------
AUTO RELATED (0.1%)
2,000 Budget Group, Inc. (Class A)*........................................................... 69,875
-----------
BANKS (6.9%)
5,000 AmSouth Bancorporation.................................................................. 270,000
1,200 City National Corp...................................................................... 39,825
1,000 Comerica, Inc........................................................................... 94,375
200,000 Credito Italiano SpA (Italy)............................................................ 746,959
4,200 Crestar Financial Corp.................................................................. 220,500
17,000 Hibernia Corp. (Class A)................................................................ 324,062
5,000 Mellon Bank Corp........................................................................ 301,875
6,500 Northern Trust Corp..................................................................... 437,531
4,000 PNC Bank Corp........................................................................... 206,250
1,000 Southtrust Corp......................................................................... 56,437
2,000 Summit Bancorp.......................................................................... 100,000
2,000 Union Planters Corp..................................................................... 123,000
1,500 Wells Fargo & Co........................................................................ 463,500
2,000 Westamerica Bancorporation.............................................................. 190,000
-----------
3,574,314
-----------
BIOTECHNOLOGY (2.2%)
1,000 Arterial Vascular Engineering, Inc.*.................................................... 73,250
13,000 Centocor, Inc.*......................................................................... 520,812
3,000 Genzyme Corp. General Division*......................................................... 80,062
4,000 Gilead Sciences, Inc.*.................................................................. 162,000
7,000 IDEC Pharmaceuticals Corp.*............................................................. 292,250
-----------
1,128,374
-----------
BUILDING & CONSTRUCTION (0.3%)
7,000 D.R. Horton, Inc........................................................................ 138,250
-----------
CABLE/CELLULAR (4.1%)
16,000 Comcast Corp. (Class A Special)......................................................... 499,000
4,000 Comcast Corp. (Class A)................................................................. 124,250
7,000 Cox Communications, Inc. (Class A)*..................................................... 258,125
7,000 HSN, Inc.*.............................................................................. 333,375
12,000 Tele-Communications, Inc. (Class A)*.................................................... 336,000
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
9,000 Time Warner, Inc........................................................................ $ 577,687
-----------
2,128,437
-----------
CAPITAL GOODS (0.6%)
4,000 General Electric Co..................................................................... 310,000
-----------
COMMUNICATIONS EQUIPMENT (2.5%)
7,000 CIENA Corp.*............................................................................ 385,437
5,000 Cisco Systems, Inc.*.................................................................... 315,312
3,000 Lucent Technologies Inc................................................................. 265,500
4,000 Nokia Corp. (ADR) (Finland)............................................................. 304,000
-----------
1,270,249
-----------
COMPUTER EQUIPMENT (0.7%)
4,000 SCI Systems, Inc.*...................................................................... 174,000
4,000 Sun Microsystems, Inc.*................................................................. 191,750
-----------
365,750
-----------
COMPUTER SOFTWARE (8.6%)
5,000 Arbor Software Corp.*................................................................... 187,812
4,500 BMC Software, Inc.*..................................................................... 304,875
3,000 CBT Group PLC (ADR) (Ireland)*.......................................................... 272,250
1,000 Citrix Systems, Inc.*................................................................... 68,750
10,000 Computer Associates International, Inc.................................................. 531,875
11,000 Compuware Corp.*........................................................................ 429,000
7,000 Electronic Arts, Inc.*.................................................................. 251,562
5,000 Legato Systems, Inc.*................................................................... 229,375
7,000 Manugistics Group, Inc.*................................................................ 281,750
4,000 Microsoft Corp.*........................................................................ 596,750
13,000 PeopleSoft, Inc.*....................................................................... 455,812
6,000 Platinum Technology, Inc.*.............................................................. 168,000
1,000 SAP AG (Pref.) (Germany)................................................................ 363,040
6,000 Veritas Software Corp.*................................................................. 294,750
-----------
4,435,601
-----------
CONSUMER - NONCYCLICAL (3.9%)
9,000 Alberto-Culver Co. (Class B)............................................................ 266,625
6,000 Clorox Co............................................................................... 459,750
8,000 Heinz (H.J.) Co......................................................................... 443,500
5,000 Keebler Foods Co.*...................................................................... 137,500
6,000 Nabisco Holdings Corp. (Class A)........................................................ 248,250
3,000 Procter & Gamble Co..................................................................... 235,125
2,500 Quaker Oats Company (The)............................................................... 134,375
2,000 Sara Lee Corp........................................................................... 109,125
-----------
2,034,250
-----------
CONSUMER BUSINESS SERVICES (4.5%)
8,000 Automatic Data Processing, Inc.......................................................... 478,500
19,224 Cendant Corp.*.......................................................................... 651,213
10,000 Corrections Corp. of America*........................................................... 368,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
10,000 Paychex, Inc............................................................................ $ 478,750
8,000 Sysco Corp.............................................................................. 358,000
-----------
2,335,213
-----------
CONSUMER PRODUCTS (7.1%)
10,000 Albertson's, Inc........................................................................ 476,875
4,600 CVS Corp................................................................................ 301,587
5,000 Dominick's Supermarkets, Inc.*.......................................................... 198,125
15,000 Fred Meyer, Inc.*....................................................................... 553,125
15,000 Kroger Co.*............................................................................. 586,875
8,000 Rite Aid Corp........................................................................... 499,500
8,000 Safeway, Inc.*.......................................................................... 531,500
15,600 Walgreen Co............................................................................. 516,750
-----------
3,664,337
-----------
DRUGS (7.6%)
10,000 ALZA Corp. (Class A)*................................................................... 356,250
5,000 Bristol-Myers Squibb Co................................................................. 498,437
2,000 Cardinal Health, Inc.................................................................... 154,875
3,000 Dura Pharmaceuticals, Inc.*............................................................. 119,063
8,000 Lilly (Eli) & Co........................................................................ 540,000
5,000 Medicis Pharmaceutical Corp. (Class A)*................................................. 232,500
160 Novartis AG (Switzerland)............................................................... 274,255
6,300 Pfizer, Inc............................................................................. 516,206
8,000 Schering-Plough Corp.................................................................... 579,000
4,200 Warner-Lambert Co....................................................................... 632,100
-----------
3,902,686
-----------
ENERGY (1.2%)
4,200 Halliburton Co.......................................................................... 188,738
5,800 Schlumberger, Ltd....................................................................... 427,388
-----------
616,126
-----------
FINANCIAL - MISCELLANEOUS (5.3%)
2,000 American Express Co..................................................................... 167,375
3,000 Associates First Capital Corp. (Class A)................................................ 204,000
2,200 Donaldson, Lufkin & Jenrette, Inc....................................................... 154,688
6,350 Edwards (A.G.), Inc..................................................................... 240,506
9,000 Fannie Mae.............................................................................. 555,750
12,000 Freddie Mac............................................................................. 534,000
7,000 Hambrecht & Quist Group*................................................................ 221,813
500 Legg Mason, Inc......................................................................... 24,719
4,000 Lehman Brothers Holdings, Inc........................................................... 217,250
6,500 Paine Webber Group, Inc................................................................. 206,781
4,000 Providian Financial Corp................................................................ 195,500
-----------
2,722,382
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HEALTHCARE PRODUCTS & SERVICES (4.0%)
12,000 HBO & Co................................................................................ $ 627,750
24,000 Health Management Associates, Inc. (Class A)*........................................... 574,500
14,000 Healthsouth Corp.*...................................................................... 314,125
10,000 Renal Treatment Centers, Inc.*.......................................................... 320,625
9,000 Total Renal Care Holdings, Inc.*........................................................ 218,813
-----------
2,055,813
-----------
INSURANCE (2.6%)
6,000 Allstate Corp........................................................................... 531,000
3,000 Equitable Companies, Inc................................................................ 138,000
2,100 Marsh & McLennan Companies, Inc......................................................... 155,138
5,100 SunAmerica, Inc......................................................................... 204,956
1,500 Torchmark Corp.......................................................................... 62,344
5,500 Travelers Group, Inc.................................................................... 272,250
-----------
1,363,688
-----------
INTERNET (3.5%)
8,000 America Online, Inc.*................................................................... 765,500
6,000 Checkfree Holdings Corp.*............................................................... 147,000
14,000 Excite, Inc.*........................................................................... 596,750
5,000 Yahoo! Inc.*............................................................................ 316,875
-----------
1,826,125
-----------
MEDIA GROUP (8.4%)
22,000 CBS Corp................................................................................ 658,625
14,000 Chancellor Media Corp.*................................................................. 481,250
7,000 Clear Channel Communications, Inc.*..................................................... 539,000
5,000 Gannett Co., Inc........................................................................ 302,500
8,000 Jacor Communications, Inc.*............................................................. 400,000
7,000 News Corp., Ltd. (ADR) (Australia)...................................................... 174,125
19,800 Outdoor Systems, Inc.*.................................................................. 475,200
7,300 Tribune Co.............................................................................. 443,475
8,000 Univision Communications, Inc. (Class A)*............................................... 305,000
5,000 Viacom, Inc. (Class B)*................................................................. 208,750
3,500 Walt Disney Co.......................................................................... 372,969
-----------
4,360,894
-----------
MEDICAL SUPPLIES (2.8%)
5,000 Becton, Dickinson & Co.................................................................. 315,625
8,500 Guidant Corp............................................................................ 546,125
7,300 Medtronic, Inc.......................................................................... 372,756
3,700 Sofamor Danek Group, Inc.*.............................................................. 231,713
-----------
1,466,219
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - AMERICAN VALUE
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-LINE INSURANCE (0.3%)
2,000 Lincoln National Corp................................................................... $ 151,375
-----------
RESTAURANTS (0.7%)
10,000 Cracker Barrel Old Country Store, Inc................................................... 346,250
-----------
RETAIL (8.1%)
6,000 Barnes & Noble, Inc.*................................................................... 190,875
20,000 Costco Companies, Inc.*................................................................. 867,500
950 Dollar General Corp..................................................................... 34,556
16,000 Family Dollar Stores, Inc............................................................... 510,000
8,000 Gap, Inc................................................................................ 312,500
6,000 General Nutrition Companies, Inc.*...................................................... 216,375
9,500 Home Depot, Inc......................................................................... 572,969
7,200 Lowe's Companies, Inc................................................................... 364,050
12,000 Mattel, Inc............................................................................. 486,000
10,000 Proffitt's, Inc.*....................................................................... 293,750
8,200 Wal-Mart Stores, Inc.................................................................... 326,975
-----------
4,175,550
-----------
SEMICONDUCTORS (1.1%)
3,000 Linear Technology Corp.................................................................. 198,000
3,000 Maxim Integrated Products, Inc.*........................................................ 103,875
8,000 Micron Technology, Inc.*................................................................ 277,000
-----------
578,875
-----------
TELECOMMUNICATIONS (2.0%)
6,000 Ameritech Corp.......................................................................... 257,625
4,000 Intermedia Communications Inc.*......................................................... 246,000
9,000 LCI International, Inc.*................................................................ 258,188
5,000 Teleport Communications Group Inc. (Class A)*........................................... 279,063
-----------
1,040,876
-----------
UTILITIES (3.5%)
13,000 Consolidated Edison Co. of New York, Inc................................................ 537,063
30,000 DPL, Inc................................................................................ 549,375
5,000 GTE Corp................................................................................ 272,813
4,000 New York State Electric & Gas Corp...................................................... 141,000
5,000 SCANA Corp.............................................................................. 140,938
3,000 U.S. West Communications Group.......................................................... 144,377
-----------
1,785,566
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $42,086,011)........................................................... $48,321,940
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION (4.0%)
$ 1,900 U.S. Treasury Bond 6.375% due 08/15/27 (IDENTIFIED COST $1,918,109)..................... $ 2,040,220
-----------
SHORT-TERM INVESTMENT (a) (3.1%)
U.S. GOVERNMENT AGENCY
1,600 Federal Home Loan Mortgage Corp. 5.57% due 02/02/98
(IDENTIFIED COST $1,599,752).......................................................... 1,599,752
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $45,603,872) (b).......................................................... 100.6 % 51,961,912
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS............................................. (0.6) (306,378)
------ ------------
NET ASSETS................................................................................. 100.0 % $ 51,655,534
------ ------------
------ ------------
</TABLE>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $6,838,484 and the
aggregate gross unrealized depreciation is $480,444, resulting in net
unrealized appreciation of $6,358,040.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (102.3%)
APPAREL & FOOTWEAR (0.9%)
600 Nautica Enterprises, Inc.*............................................................... $ 16,800
250 Tommy Hilfiger Corp.*.................................................................... 10,891
----------
27,691
----------
BANKING (1.1%)
600 State Street Corp........................................................................ 33,600
----------
BUILDING MATERIALS (2.6%)
1,300 Southdown, Inc........................................................................... 81,981
----------
CAPITAL GOODS (2.1%)
1,500 Tyco International Ltd................................................................... 66,562
----------
COMPUTER SOFTWARE (7.7%)
600 Cadence Design Systems, Inc.*............................................................ 16,800
900 Computer Associates International, Inc................................................... 47,869
1,000 Microsoft Corp.*......................................................................... 149,187
800 Security Dynamics Technologies, Inc.*.................................................... 28,200
----------
242,056
----------
COMPUTERS - SYSTEMS (3.3%)
1,550 EMC Corp.*............................................................................... 50,472
1,100 Sun Microsystems, Inc.*.................................................................. 52,731
----------
103,203
----------
CONSUMER SERVICES (2.5%)
3,000 AccuStaff, Inc.*......................................................................... 77,250
----------
DRUGS (12.6%)
1,500 Elan Corp. PLC (ADR) (Ireland)*.......................................................... 77,906
1,800 Medicis Pharmaceutical Corp. (Class A)*.................................................. 83,700
1,100 Pfizer, Inc.............................................................................. 90,131
600 Warner-Lambert Co........................................................................ 90,300
1,500 Watson Pharmaceuticals, Inc.*............................................................ 55,125
----------
397,162
----------
ENVIRONMENTAL CONTROL (2.1%)
4,000 Newpark Resources, Inc.*................................................................. 65,000
----------
FINANCIAL - MISCELLANEOUS (11.8%)
200 Household International, Inc............................................................. 24,900
2,900 MBNA Corp................................................................................ 90,081
2,000 Providian Financial Corp................................................................. 97,750
2,000 SunAmerica, Inc.......................................................................... 80,375
1,600 Travelers Group, Inc..................................................................... 79,200
----------
372,306
----------
HEALTHCARE PRODUCTS & SERVICES (2.1%)
1,100 Express Scripts, Inc. (Class A)*......................................................... 67,375
----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HOME BUILDING (0.8%)
700 Oakwood Homes Corp....................................................................... $ 25,156
----------
HOSPITAL MANAGEMENT (3.7%)
2,800 Quorum Health Group, Inc.*............................................................... 70,000
1,000 Universal Health Services, Inc. (Class B)*............................................... 46,625
----------
116,625
----------
HOUSEHOLD FURNISHINGS & APPLIANCES (2.3%)
1,500 Ethan Allen Interiors, Inc............................................................... 71,812
----------
INSURANCE (5.2%)
1,800 Conseco, Inc............................................................................. 82,350
1,200 MGIC Investment Corp..................................................................... 81,150
----------
163,500
----------
MACHINERY - DIVERSIFIED (2.3%)
1,400 Deere & Co............................................................................... 73,850
----------
MEDIA (2.4%)
1,000 Clear Channel Communications, Inc.*...................................................... 77,000
----------
OIL DRILLING & SERVICES (1.3%)
1,300 R & B Falcon Corp.*...................................................................... 39,325
----------
OIL EQUIPMENT & SERVICES (3.5%)
5,250 Global Industries Ltd.*.................................................................. 76,453
1,700 Varco International, Inc.*............................................................... 34,850
----------
111,303
----------
RESTAURANTS (1.2%)
1,000 Starbucks Corp.*......................................................................... 36,562
----------
RETAIL - DEPARTMENT STORES (4.0%)
2,700 Proffitt's, Inc.*........................................................................ 79,313
1,200 Stage Stores, Inc.*...................................................................... 46,500
----------
125,813
----------
RETAIL - DRUG STORES (2.0%)
750 Rite Aid Corp............................................................................ 46,828
500 Walgreen Co.............................................................................. 16,563
----------
63,391
----------
RETAIL - FOOD CHAINS (4.8%)
2,000 Kroger Co.*.............................................................................. 78,250
1,100 Safeway, Inc.*........................................................................... 73,081
----------
151,331
----------
RETAIL - GENERAL MERCHANDISE (2.7%)
1,100 Consolidated Stores Corp.*............................................................... 45,238
1,100 Dollar General Corp...................................................................... 40,013
----------
85,251
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - CAPITAL GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
RETAIL - SPECIALTY (3.9%)
1,200 CompUSA, Inc.*........................................................................... $ 37,125
2,400 General Nutrition Companies, Inc.*....................................................... 86,550
----------
123,675
----------
RETAIL STORES (2.3%)
2,600 Staples, Inc.*........................................................................... 70,850
----------
TELECOMMUNICATIONS - LONG DISTANCE (2.7%)
3,000 LCI International, Inc.*................................................................. 86,063
----------
TELECOMMUNICATIONS - WIRELESS (2.4%)
1,700 Airtouch Communications, Inc.*........................................................... 74,588
----------
TELECOMMUNICATIONS EQUIPMENT (3.4%)
2,100 Tellabs, Inc.*........................................................................... 107,363
----------
UTILITIES - ELECTRIC (2.6%)
1,900 AES Corp.*............................................................................... 81,344
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $2,757,715)............................................................. 3,218,988
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT (a) (1.9%)
U.S. GOVERNMENT AGENCY
$ 60 Federal Home Loan Mortgage Corp. 5.57% due 02/02/98 (AMORTIZED COST $59,990)............. $ 59,990
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $2,817,705) (b)............................................................ 104.2 % 3,278,978
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS.............................................. (4.2) (133,479)
------ -----------
NET ASSETS.................................................................................. 100.0 % $ 3,145,499
------ -----------
------ -----------
</TABLE>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $505,750 and the
aggregate gross unrealized depreciation is $44,477, resulting in net
unrealized appreciation of $461,273.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (102.1%)
AEROSPACE (2.7%)
55,000 Raytheon Co. (Class B)................................................................. $ 2,866,875
------------
ALUMINUM (2.8%)
39,000 Aluminum Co. of America................................................................ 2,978,625
------------
AUTOMOTIVE (5.5%)
82,000 Chrysler Corp.......................................................................... 2,854,625
58,000 Ford Motor Co.......................................................................... 2,958,000
------------
5,812,625
------------
BANKS (2.5%)
45,500 NationsBank Corp....................................................................... 2,730,000
------------
BANKS - MONEY CENTER (2.7%)
41,000 BankAmerica Corp....................................................................... 2,913,562
------------
BEVERAGES - SOFT DRINKS (2.7%)
80,500 PepsiCo Inc............................................................................ 2,903,031
------------
CHEMICALS (5.4%)
50,500 Du Pont (E.I.) de Nemours & Co., Inc................................................... 2,859,562
48,500 Eastman Chemical Co.................................................................... 2,888,781
------------
5,748,343
------------
COMPUTERS - SYSTEMS (2.6%)
28,300 International Business Machines Corp................................................... 2,792,856
------------
CONGLOMERATES (5.4%)
34,000 Minnesota Mining & Manufacturing Co.................................................... 2,839,000
72,000 Tenneco, Inc........................................................................... 2,920,500
------------
5,759,500
------------
DRUGS (2.7%)
28,500 Bristol-Myers Squibb Co................................................................ 2,841,094
------------
DRUGS & HEALTHCARE (2.7%)
41,000 Abbott Laboratories.................................................................... 2,903,312
------------
ELECTRIC - MAJOR (2.8%)
38,000 General Electric Co.................................................................... 2,945,000
------------
ENERGY (2.7%)
46,000 Kerr-McGee Corp........................................................................ 2,880,750
------------
FOODS (5.2%)
53,200 Quaker Oats Company (The).............................................................. 2,859,500
46,500 Unilever NV (ADR) (Netherlands)........................................................ 2,653,406
------------
5,512,906
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MACHINERY - AGRICULTURAL (2.6%)
53,000 Deere & Co............................................................................. $ 2,795,750
------------
MANUFACTURING - DIVERSIFIED (2.8%)
42,000 Honeywell, Inc......................................................................... 2,942,625
------------
METALS - MISCELLANEOUS (2.7%)
44,500 Phelps Dodge Corp...................................................................... 2,931,438
------------
NATURAL GAS (2.7%)
69,000 Enron Corp............................................................................. 2,859,188
------------
OFFICE EQUIPMENT (2.7%)
64,000 Pitney Bowes, Inc...................................................................... 2,936,000
------------
OIL - DOMESTIC (5.4%)
34,500 Amoco Corp............................................................................. 2,807,438
55,000 Ashland, Inc........................................................................... 2,901,250
------------
5,708,688
------------
OIL - INTEGRATED - INTERNATIONAL (2.6%)
46,200 Exxon Corp............................................................................. 2,740,238
------------
PAPER & FOREST PRODUCTS (2.7%)
57,300 Weyerhaeuser Co........................................................................ 2,854,256
------------
PHOTOGRAPHY (2.7%)
44,000 Eastman Kodak Co....................................................................... 2,871,000
------------
RAILROADS (2.7%)
54,000 CSX Corp............................................................................... 2,862,000
------------
RETAIL - DEPARTMENT STORES (2.7%)
54,000 May Department Stores Co............................................................... 2,838,375
------------
RETAIL - FOOD CHAINS (2.7%)
131,000 American Stores Co..................................................................... 2,849,250
------------
STEEL (2.6%)
87,000 Timken Co.............................................................................. 2,805,750
------------
TELECOMMUNICATIONS (5.4%)
31,400 Bell Atlantic Corp..................................................................... 2,906,463
48,500 Sprint Corp............................................................................ 2,879,687
------------
5,786,150
------------
TOBACCO (2.7%)
68,500 Philip Morris Companies, Inc........................................................... 2,842,750
------------
UTILITIES - ELECTRIC (8.0%)
109,400 Houston Industries, Inc................................................................ 2,858,075
66,700 New England Electric System............................................................ 2,801,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - DIVIDEND GROWTH
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
90,500 Unicom Corp............................................................................ $ 2,805,500
------------
8,464,975
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $87,103,223) (a)......................................................... 102.1 % 108,676,912
LIABILITIES IN EXCESS OF OTHER ASSETS..................................................... (2.1) (2,235,582)
------ -------------
NET ASSETS................................................................................ 100.0 % $ 106,441,330
------ -------------
------ -------------
</TABLE>
- ---------------------
ADR American Depository Receipt.
(a) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $22,005,652 and the
aggregate gross unrealized depreciation is $431,963, resulting in net
unrealized appreciation of $21,573,689.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - UTILITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (97.4%)
NATURAL GAS (17.3%)
4,000 Enron Corp............................................................................... $ 165,750
4,000 KeySpan Energy Corp...................................................................... 136,250
5,000 MCN Corp................................................................................. 185,000
2,000 Mobil Corp............................................................................... 136,250
3,000 Pacific Enterprises...................................................................... 108,187
5,000 Swift Energy Co.*........................................................................ 90,000
6,000 Williams Companies, Inc.................................................................. 171,000
----------
992,437
----------
TELECOMMUNICATIONS (25.1%)
4,000 BCE, Inc. (Canada)....................................................................... 125,000
2,500 BellSouth Corp........................................................................... 151,406
5,000 Cincinnati Bell, Inc..................................................................... 179,375
3,000 COLT Telecom Group plc (ADR) (United Kingdom)*........................................... 181,125
4,000 GTE Corp................................................................................. 218,250
4,000 LCI International, Inc.*................................................................. 114,750
3,000 Sprint Corp.............................................................................. 178,125
2,000 Teleport Communications Group Inc. (Class A)*............................................ 111,625
5,000 WorldCom, Inc.*.......................................................................... 179,062
----------
1,438,718
----------
UTILITIES - ELECTRIC (52.6%)
3,000 AES Corp.*............................................................................... 128,437
3,000 American Electric Power Co............................................................... 147,937
3,000 CILCORP, Inc............................................................................. 134,250
4,000 CINergy Corp............................................................................. 138,000
4,000 CMS Energy Corp.......................................................................... 170,250
8,250 DPL, Inc................................................................................. 151,078
4,000 DQE, Inc................................................................................. 130,750
3,000 Duke Power Co............................................................................ 162,563
4,500 Edison International..................................................................... 120,938
5,000 Florida Progress Corp.................................................................... 191,563
4,000 GPU, Inc................................................................................. 157,250
4,000 MDU Resources Group, Inc................................................................. 119,500
4,500 New Century Energies, Inc................................................................ 205,031
3,000 NIPSCO Industries, Inc................................................................... 153,188
4,500 PacifiCorp............................................................................... 104,344
4,000 Pinnacle West Capital Corp............................................................... 160,000
5,000 Sierra Pacific Resources................................................................. 176,875
6,000 Teco Energy, Inc......................................................................... 155,625
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
4,000 Utilicorp United, Inc.................................................................... $ 141,500
4,000 Western Resources, Inc................................................................... 163,000
----------
3,012,079
----------
WATER (2.4%)
5,000 American Water Works Company, Inc........................................................ 135,000
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $4,211,298)............................................................. 5,578,234
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ---------
<C> <S> <C>
SHORT-TERM INVESTMENT (3.6%)
REPURCHASE AGREEMENT
$ 203 The Bank of New York 5.375% due 02/02/98 (dated 01/30/98; proceeds $202,961) (a)
(IDENTIFIED COST $202,870)............................................................. 202,870
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $4,414,168) (b)............................................................ 101.0 % 5,781,104
LIABILITIES IN EXCESS OF OTHER ASSETS....................................................... (1.0) (55,368)
------ -----------
NET ASSETS.................................................................................. 100.0 % $ 5,725,736
------ -----------
------ -----------
</TABLE>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Collateralized by $201,162 U.S. Treasury Note 6.75% due 05/31/99 valued at
$206,927.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $1,407,342 and the
aggregate gross unrealized depreciation is $40,406, resulting in net
unrealized appreciation of $1,366,936.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (99.3%)
ADVERTISING/MARKETING SERVICES (0.6%)
1,000 Cognizant Corp.......................................................................... $ 45,375
900 Interpublic Group of Companies, Inc..................................................... 44,156
1,000 Omnicom Group, Inc...................................................................... 40,562
-----------
130,093
-----------
AEROSPACE & DEFENSE (0.8%)
850 Boeing Co............................................................................... 40,428
550 General Dynamics Corp................................................................... 47,437
450 Lockheed Martin Corp.................................................................... 46,828
350 Northrop Grumman Corp................................................................... 42,919
-----------
177,612
-----------
AGRICULTURAL PRODUCTS (0.4%)
2,105 Archer-Daniels-Midland Co............................................................... 44,337
500 Pioneer Hi-Bred International, Inc...................................................... 50,031
-----------
94,368
-----------
AIR FREIGHT (0.2%)
700 Federal Express Corp.*.................................................................. 45,544
-----------
AIRLINES (0.7%)
300 AMR Corp.*.............................................................................. 37,875
350 Delta Air Lines, Inc.................................................................... 39,944
1,600 Southwest Airlines Co................................................................... 41,700
700 US Airways Group Inc.*.................................................................. 42,656
-----------
162,175
-----------
ALUMINUM (0.6%)
1,400 Alcan Aluminium Ltd. (Canada)........................................................... 41,212
600 Aluminum Co. of America................................................................. 45,825
650 Reynolds Metals Co...................................................................... 40,991
-----------
128,028
-----------
AUTO PARTS - AFTER MARKET (1.6%)
1,850 Cooper Tire & Rubber Co................................................................. 44,516
1,000 Dana Corp............................................................................... 50,125
1,250 Echlin, Inc............................................................................. 44,453
1,275 Genuine Parts Co........................................................................ 42,314
750 Goodyear Tire & Rubber Co............................................................... 46,969
1,500 ITT Industries, Inc..................................................................... 46,505
1,000 Snap-On, Inc............................................................................ 39,187
800 TRW, Inc................................................................................ 40,700
-----------
354,769
-----------
AUTOMOBILES (0.6%)
1,100 Chrysler Corp........................................................................... 38,294
900 Ford Motor Co........................................................................... 45,900
700 General Motors Corp..................................................................... 40,556
-----------
124,750
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKS - MONEY CENTER (1.6%)
700 BankAmerica Corp........................................................................ $ 49,744
450 Bankers Trust New York Corp............................................................. 46,941
400 Chase Manhattan Corp.................................................................... 42,875
350 Citicorp................................................................................ 41,650
650 First Chicago NBD Corp.................................................................. 48,506
900 First Union Corp........................................................................ 43,256
400 Morgan (J.P.) & Co., Inc................................................................ 40,475
700 NationsBank Corp........................................................................ 42,000
-----------
355,447
-----------
BANKS - REGIONAL (4.7%)
800 Banc One Corp........................................................................... 44,700
800 Bank of New York Co., Inc............................................................... 43,350
550 BankBoston Corp......................................................................... 49,225
650 BB & T Corp............................................................................. 38,309
500 Comerica, Inc........................................................................... 47,187
600 CoreStates Financial Corp............................................................... 45,900
600 Fifth Third Bancorp..................................................................... 45,750
700 Fleet Financial Group, Inc.............................................................. 50,137
1,200 Huntington Bancshares, Inc.............................................................. 40,050
700 KeyCorp................................................................................. 45,500
800 Mellon Bank Corp........................................................................ 48,300
750 National City Corp...................................................................... 45,141
600 Northern Trust Corp..................................................................... 40,387
1,200 Norwest Corp............................................................................ 43,800
800 PNC Bank Corp........................................................................... 41,250
450 Republic New York Corp.................................................................. 48,994
700 State Street Corp....................................................................... 39,200
800 Summit Bancorp.......................................................................... 40,000
700 SunTrust Banks, Inc..................................................................... 48,475
1,200 Synovus Financial Corp.................................................................. 39,525
450 U.S. Bancorp............................................................................ 49,275
600 Wachovia Corp........................................................................... 46,650
150 Wells Fargo & Co........................................................................ 46,350
-----------
1,027,455
-----------
BEVERAGES - ALCOHOLIC (0.8%)
1,100 Anheuser-Busch Companies, Inc........................................................... 49,431
800 Brown-Forman Corp. (Class B)............................................................ 41,400
1,350 Coors (Adolph) Co. (Class B)............................................................ 42,356
1,100 Seagram Co. Ltd. (Canada)............................................................... 37,537
-----------
170,724
-----------
BEVERAGES - SOFT DRINKS (0.4%)
650 Coca Cola Co............................................................................ 42,087
1,050 PepsiCo, Inc............................................................................ 37,866
-----------
79,953
-----------
BIOTECHNOLOGY (0.2%)
800 Amgen Inc.*............................................................................. 39,950
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BROADCAST MEDIA (1.1%)
1,500 CBS Corp................................................................................ $ 44,906
600 Clear Channel Communications, Inc.*..................................................... 46,200
1,500 Comcast Corp. (Class A Special)......................................................... 46,781
1,700 Tele-Communications, Inc. (Class A)*.................................................... 47,600
1,700 U.S. West Media Group, Inc.*............................................................ 50,469
-----------
235,956
-----------
BUILDING MATERIALS (0.6%)
600 Armstrong World Industries Inc.......................................................... 42,750
1,000 Masco Corp.............................................................................. 49,250
1,400 Owens Corning........................................................................... 38,937
-----------
130,937
-----------
CHEMICALS (1.3%)
550 Air Products & Chemicals, Inc........................................................... 44,034
450 Dow Chemical Co......................................................................... 40,500
700 Du Pont (E.I.) De Nemours & Co., Inc.................................................... 39,637
750 Eastman Chemical Co..................................................................... 44,672
1,000 Praxair, Inc............................................................................ 41,437
450 Rohm & Haas Co.......................................................................... 38,587
900 Union Carbide Corp...................................................................... 39,431
-----------
288,298
-----------
CHEMICALS - DIVERSIFIED (0.9%)
2,200 Engelhard Corp.......................................................................... 36,850
600 FMC Corp.*.............................................................................. 40,350
950 Goodrich (B.F.) Co...................................................................... 39,841
900 Monsanto Co............................................................................. 42,694
700 PPG Industries, Inc..................................................................... 40,162
-----------
199,897
-----------
CHEMICALS - SPECIALTY (1.5%)
1,700 Ecolab, Inc............................................................................. 46,537
500 Grace (W. R.) & Co...................................................................... 39,281
850 Great Lakes Chemical Corp............................................................... 37,134
850 Hercules, Inc........................................................................... 40,109
900 International Flavors & Fragrances, Inc................................................. 37,912
1,300 Morton International, Inc............................................................... 42,900
1,050 Nalco Chemical Co....................................................................... 39,375
1,100 Sigma-Aldrich Corp...................................................................... 42,625
-----------
325,873
-----------
COMMERCIAL & CONSUMER SERVICES (1.0%)
1,000 Block (H.&R.), Inc...................................................................... 43,875
1,300 Cendant Corp.*.......................................................................... 44,037
1,400 Dun & Bradstreet Corp................................................................... 44,625
2,900 Laidlaw, Inc. (Canada).................................................................. 41,325
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1,200 Service Corp. International............................................................. $ 46,800
-----------
220,662
-----------
COMMUNICATIONS EQUIPMENT (1.8%)
1,600 Andrew Corp.*........................................................................... 44,000
2,000 DSC Communications Corp.*............................................................... 40,000
1,000 Harris Corp............................................................................. 47,625
500 Lucent Technologies Inc................................................................. 44,250
650 Motorola, Inc........................................................................... 38,634
2,800 NextLevel Systems, Inc.*................................................................ 48,650
1,000 Northern Telecom Ltd. (Canada).......................................................... 45,125
2,500 Scientific-Atlanta, Inc................................................................. 38,906
800 Tellabs, Inc.*.......................................................................... 40,900
-----------
388,090
-----------
COMPUTER - NETWORKING (0.7%)
1,200 3Com Corp.*............................................................................. 39,675
1,400 Bay Networks, Inc.*..................................................................... 38,062
2,700 Cabletron Systems, Inc.*................................................................ 38,981
700 Cisco Systems, Inc.*.................................................................... 44,144
-----------
160,862
-----------
COMPUTER SOFTWARE & SERVICES (2.2%)
1,000 Adobe Systems, Inc...................................................................... 38,437
1,100 Autodesk, Inc........................................................................... 42,487
800 Computer Associates International, Inc.................................................. 42,550
600 Computer Sciences Corp.*................................................................ 50,925
900 HBO & Co................................................................................ 47,081
300 Microsoft Corp.*........................................................................ 44,756
5,700 Novell, Inc.*........................................................................... 40,256
1,800 Oracle Corp.*........................................................................... 41,850
900 Parametric Technology Corp.*............................................................ 45,675
700 Shared Medical Systems Corp............................................................. 45,850
2,700 Unisys Corp.*........................................................................... 44,550
-----------
484,417
-----------
COMPUTERS - PERIPHERAL EQUIPMENT (0.4%)
1,500 EMC Corp.*.............................................................................. 48,844
1,800 Seagate Technology, Inc.*............................................................... 41,737
-----------
90,581
-----------
COMPUTERS - SYSTEMS (1.8%)
2,500 Apple Computer, Inc.*................................................................... 45,781
1,384 COMPAQ Computer Corp.................................................................... 41,606
2,600 Data General Corp.*..................................................................... 40,137
500 Dell Computer Corp.*.................................................................... 49,719
800 Digital Equipment Corp.*................................................................ 45,250
700 Hewlett-Packard Co...................................................................... 42,000
500 International Business Machines Corp.................................................... 49,344
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
2,700 Silicon Graphics, Inc.*................................................................. $ 41,850
900 Sun Microsystems, Inc.*................................................................. 43,144
-----------
398,831
-----------
CONSUMER - NONCYCLICAL (0.4%)
1,000 American Greetings Corp. (Class A)...................................................... 43,312
1,800 Jostens, Inc............................................................................ 40,612
-----------
83,924
-----------
CONTAINERS - METAL & GLASS (0.6%)
1,400 Ball Corp............................................................................... 45,500
900 Crown Cork & Seal Co., Inc.............................................................. 44,550
1,300 Owens-Illinois, Inc.*................................................................... 47,287
-----------
137,337
-----------
CONTAINERS - PAPER (0.7%)
1,000 Bemis Company, Inc...................................................................... 43,125
3,100 Stone Container Corp.................................................................... 39,525
700 Temple-Inland, Inc...................................................................... 38,850
700 Union Camp Corp......................................................................... 40,031
-----------
161,531
-----------
DATA PROCESSING (0.8%)
700 Automatic Data Processing, Inc.......................................................... 41,869
1,000 Ceridian Corp.*......................................................................... 45,312
1,200 Equifax, Inc............................................................................ 39,450
1,500 First Data Corp......................................................................... 45,937
-----------
172,568
-----------
DISTRIBUTORS - FOOD & HEALTH (0.6%)
600 Cardinal Health, Inc.................................................................... 46,462
1,000 Supervalu, Inc.......................................................................... 43,875
900 Sysco Corp.............................................................................. 40,275
-----------
130,612
-----------
ELECTRICAL EQUIPMENT (1.6%)
1,100 AMP, Inc................................................................................ 44,000
800 Emerson Electric Co..................................................................... 48,400
600 General Electric Co..................................................................... 46,500
1,000 General Signal Corp..................................................................... 39,000
600 Honeywell, Inc.......................................................................... 42,037
1,100 Raychem Corp............................................................................ 41,044
800 Rockwell International Corp............................................................. 44,700
800 Thomas & Betts Corp..................................................................... 39,500
-----------
345,181
-----------
ELECTRONIC COMPONENTS (0.2%)
500 Grainger (W.W.), Inc.................................................................... 48,125
-----------
ELECTRONICS - DEFENSE (0.2%)
850 Raytheon Co. (Class B).................................................................. 44,306
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONICS - INSTRUMENTATION (0.6%)
1,800 EG & G, Inc............................................................................. $ 43,425
700 Perkin-Elmer Corp....................................................................... 41,300
1,125 Tektronix, Inc.......................................................................... 47,531
-----------
132,256
-----------
ELECTRONICS - SEMICONDUCTORS (1.1%)
2,000 Advanced Micro Devices, Inc.*........................................................... 40,125
500 Intel Corp.............................................................................. 40,500
1,700 LSI Logic Corp.*........................................................................ 40,800
1,350 Micron Technology, Inc.*................................................................ 46,744
1,400 National Semiconductor Corp.*........................................................... 39,375
700 Texas Instruments, Inc.................................................................. 38,237
-----------
245,781
-----------
ENGINEERING & CONSTRUCTION (0.6%)
1,100 Fluor Corp.............................................................................. 41,456
1,700 Foster Wheeler Corp..................................................................... 40,800
1,400 McDermott International, Inc............................................................ 44,625
-----------
126,881
-----------
ENTERTAINMENT (0.8%)
800 King World Productions Inc.*............................................................ 47,350
700 Time Warner, Inc........................................................................ 44,931
1,000 Viacom, Inc. (Class B)*................................................................. 41,750
400 Walt Disney Co.......................................................................... 42,625
-----------
176,656
-----------
FACILITIES & ENVIRONMENTAL SERVICES (0.2%)
1,700 Safety-Kleen Corp....................................................................... 44,200
-----------
FINANCE - CONSUMER (1.3%)
600 Beneficial Corp......................................................................... 46,575
1,000 Countrywide Credit Industries, Inc...................................................... 46,625
2,100 Green Tree Financial Corp............................................................... 41,606
400 Household International, Inc............................................................ 49,800
1,400 MBNA Corp............................................................................... 43,487
1,000 Providian Financial Corp................................................................ 48,875
-----------
276,968
-----------
FINANCE - DIVERSIFIED (1.7%)
600 American Express Co..................................................................... 50,212
700 American General Corp................................................................... 39,462
800 Fannie Mae.............................................................................. 49,400
1,000 Freddie Mac............................................................................. 44,500
700 MBIA Inc................................................................................ 45,325
700 MGIC Investment Corp.................................................................... 47,337
800 Morgan Stanley, Dean Witter, Discover & Co. (Note 3).................................... 46,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1,050 SunAmerica, Inc......................................................................... $ 42,197
-----------
365,133
-----------
FOODS (2.5%)
500 Bestfoods............................................................................... 48,750
800 Campbell Soup Co........................................................................ 42,800
1,400 ConAgra, Inc............................................................................ 44,275
600 General Mills, Inc...................................................................... 44,662
800 Heinz (H.J.) Co......................................................................... 44,350
750 Hershey Foods Corp...................................................................... 47,766
900 Kellogg Co.............................................................................. 41,569
800 Quaker Oats Company (The)............................................................... 43,000
500 Ralston-Ralston Purina Group............................................................ 46,937
900 Sara Lee Corp........................................................................... 49,106
800 Unilever NV (ADR) (Netherlands)......................................................... 45,650
600 Wrigley (Wm.) Jr. Co. (Class A)......................................................... 44,362
-----------
543,227
-----------
FOOTWEAR (0.4%)
1,000 Nike, Inc. (Class B).................................................................... 40,062
1,400 Reebok International Ltd. (United Kingdom)*............................................. 37,362
-----------
77,424
-----------
GAMING, LOTTERY, & PARI-MUTUEL COMPANIES (0.4%)
2,000 Harrah's Entertainment, Inc.*........................................................... 44,000
1,700 Mirage Resorts, Inc.*................................................................... 39,206
-----------
83,206
-----------
GOLD & PRECIOUS METALS MINING (0.4%)
2,000 Barrick Gold Corp. (Canada)............................................................. 38,750
7,300 Battle Mountain Gold Co................................................................. 41,062
-----------
79,812
-----------
HARDWARE & TOOLS (0.4%)
900 Black & Decker Corp..................................................................... 43,369
1,100 Stanley Works........................................................................... 48,675
-----------
92,044
-----------
HEALTHCARE - DIVERSIFIED (1.5%)
650 Abbott Laboratories..................................................................... 46,028
1,400 Allergan, Inc........................................................................... 47,600
500 American Home Products Corp............................................................. 47,719
400 Bristol-Myers Squibb Co................................................................. 39,875
700 Johnson & Johnson....................................................................... 46,856
1,300 Mallinckrodt Group, Inc................................................................. 46,069
300 Warner-Lambert Co....................................................................... 45,150
-----------
319,297
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HEALTHCARE - DRUGS (1.0%)
700 Lilly (Eli) & Co........................................................................ $ 47,250
350 Merck & Co., Inc........................................................................ 41,037
600 Pfizer, Inc............................................................................. 49,162
1,200 Pharmacia & Upjohn, Inc................................................................. 46,125
600 Schering-Plough Corp.................................................................... 43,425
-----------
226,999
-----------
HEALTHCARE - HMOS (0.4%)
1,950 Humana, Inc.*........................................................................... 39,122
850 United Healthcare Corp.................................................................. 43,562
-----------
82,684
-----------
HEALTHCARE - LONG TERM (0.4%)
1,800 Healthsouth Corp.*...................................................................... 40,387
1,400 Manor Care, Inc......................................................................... 48,562
-----------
88,949
-----------
HEALTHCARE SERVICES (0.2%)
1,200 ALZA Corp. (Class A)*................................................................... 42,750
-----------
HEAVY DUTY TRUCKS & PARTS (0.6%)
800 Cummins Engine Co., Inc................................................................. 42,800
1,700 Navistar International Corp.*........................................................... 45,900
800 PACCAR, Inc............................................................................. 40,200
-----------
128,900
-----------
HOME BUILDING (0.8%)
700 Centex Corp............................................................................. 43,925
1,000 Fleetwood Enterprises, Inc.............................................................. 41,625
1,700 Kaufman & Broad Home Corp............................................................... 43,775
1,100 Pulte Corp.............................................................................. 46,887
-----------
176,212
-----------
HOSPITAL MANAGEMENT (0.4%)
1,600 Columbia/HCA Healthcare Corp............................................................ 40,000
1,300 Tenet Healthcare Corp.*................................................................. 44,850
-----------
84,850
-----------
HOUSEHOLD FURNISHINGS & APPLIANCES (0.4%)
1,200 Maytag Corp............................................................................. 46,125
800 Whirlpool Corp.......................................................................... 46,250
-----------
92,375
-----------
HOUSEHOLD PRODUCTS - NON-DURABLE (1.1%)
600 Clorox Co............................................................................... 45,975
600 Colgate-Palmolive Co.................................................................... 43,950
1,100 Fort James Corp......................................................................... 47,231
900 Kimberly-Clark Corp..................................................................... 46,969
600 Procter & Gamble Co..................................................................... 47,025
-----------
231,150
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HOUSEWARES (0.8%)
1,150 Fortune Brands, Inc..................................................................... $ 43,988
1,200 Newell Co............................................................................... 49,275
1,600 Rubbermaid, Inc......................................................................... 41,400
1,500 Tupperware Corp......................................................................... 38,344
-----------
173,007
-----------
INSURANCE BROKERS (0.4%)
825 Aon Corp................................................................................ 46,045
600 Marsh & McLennan Cos., Inc.............................................................. 44,325
-----------
90,370
-----------
INVESTMENT BANKING/BROKERAGE (0.6%)
750 Lehman Brothers Holdings, Inc........................................................... 40,734
650 Merrill Lynch & Co., Inc................................................................ 41,031
1,200 Schwab (CHARLES) Corp................................................................... 43,800
-----------
125,565
-----------
LEISURE TIME - PRODUCTS (0.6%)
1,350 Brunswick Corp.......................................................................... 40,669
1,400 Hasbro, Inc............................................................................. 48,300
1,000 Mattel, Inc............................................................................. 40,500
-----------
129,469
-----------
LIFE & HEALTH INSURANCE (1.2%)
550 Aetna Inc............................................................................... 40,425
1,000 Conseco, Inc............................................................................ 45,750
600 Jefferson-Pilot Corp.................................................................... 49,013
1,100 Torchmark Corp.......................................................................... 45,719
400 Transamerica Corp....................................................................... 41,100
1,000 UNUM Corp............................................................................... 48,625
-----------
270,632
-----------
LODGING - HOTELS (0.6%)
1,400 Hilton Hotels Corp...................................................................... 39,638
500 ITT Corp.*.............................................................................. 40,000
650 Marriot International, Inc.............................................................. 44,931
-----------
124,569
-----------
MACHINERY - DIVERSIFIED (2.0%)
700 Case Corp............................................................................... 40,819
900 Caterpillar Inc......................................................................... 43,200
1,700 Cincinnati Milacron, Inc................................................................ 43,350
800 Cooper Industries, Inc.................................................................. 42,450
800 Deere & Co.............................................................................. 42,200
1,400 Dover Corp.............................................................................. 47,688
1,100 Harnischfeger Industries, Inc........................................................... 38,500
1,125 Ingersoll-Rand Co....................................................................... 44,719
450 NACCO Industries, Inc. (Class A)........................................................ 45,197
1,400 Timken Co............................................................................... 45,150
-----------
433,273
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MANUFACTURING - DIVERSIFIED (2.8%)
850 Aeroquip-Vickers, Inc................................................................... $ 42,500
1,100 AlliedSignal, Inc....................................................................... 42,831
1,200 Corning, Inc............................................................................ 40,800
1,050 Crane Co................................................................................ 45,347
450 Eaton Corp.............................................................................. 40,388
800 Illinois Tool Works Inc................................................................. 44,550
900 Johnson Controls, Inc................................................................... 45,619
450 Minnesota Mining & Manufacturing Co..................................................... 37,575
900 National Service Industries, Inc........................................................ 45,000
1,000 Tenneco, Inc............................................................................ 40,563
700 Textron, Inc............................................................................ 41,869
1,200 Thermo Electron Corp.*.................................................................. 46,800
1,000 Tyco International Ltd.................................................................. 44,375
600 United Technologies Corp................................................................ 48,975
-----------
607,192
-----------
MANUFACTURING - SPECIALIZED (1.0%)
1,100 Avery Dennison Corp..................................................................... 49,363
900 Briggs & Stratton Corp.................................................................. 39,656
1,200 Millipore Corp.......................................................................... 39,300
1,900 Pall Corp............................................................................... 37,881
1,000 Parker-Hannifin Corp.................................................................... 43,688
-----------
209,888
-----------
MEDICAL PRODUCTS & SUPPLIES (2.0%)
1,400 Bard (C.R.), Inc........................................................................ 43,400
1,000 Bausch & Lomb, Inc...................................................................... 42,875
800 Baxter International, Inc............................................................... 44,550
800 Becton, Dickinson & Co.................................................................. 50,500
1,500 Biomet, Inc............................................................................. 42,938
800 Boston Scientific Corp.*................................................................ 40,600
700 Guidant Corp............................................................................ 44,975
900 Medtronic, Inc.......................................................................... 45,956
1,300 St. Jude Medical, Inc.*................................................................. 42,250
1,400 United States Surgical Corp............................................................. 39,988
-----------
438,032
-----------
METALS & MINING (1.4%)
1,800 ASARCO, Inc............................................................................. 40,050
2,600 Cyprus Amax Minerals Co................................................................. 40,950
2,700 Freeport-McMoran Copper & Gold, Inc. (Class B).......................................... 39,656
3,900 Homestake Mining Co..................................................................... 37,050
2,200 Inco Ltd. (Canada)...................................................................... 39,050
1,300 Newmont Mining Corp..................................................................... 37,050
600 Phelps Dodge Corp....................................................................... 39,525
2,800 Placer Dome Inc. (Canada)............................................................... 36,050
-----------
309,381
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-LINE INSURANCE (1.2%)
400 American International Group, Inc....................................................... $ 44,125
250 CIGNA Corp.............................................................................. 42,391
550 Hartford Financial Services Group Inc................................................... 49,500
650 Lincoln National Corp................................................................... 49,197
400 Loews Corp.............................................................................. 39,925
900 Travelers Group, Inc.................................................................... 44,550
-----------
269,688
-----------
OFFICE EQUIPMENT & SUPPLIES (0.4%)
2,600 Moore Corp. Ltd. (Canada)............................................................... 39,000
1,000 Pitney Bowes, Inc....................................................................... 45,875
-----------
84,875
-----------
OIL & GAS - EXPLORATION & PRODUCTION (0.2%)
450 Burlington Northern Santa Fe Corp....................................................... 39,038
-----------
OIL & GAS - REFINING & MARKETING (0.4%)
900 Ashland, Inc............................................................................ 47,475
1,300 Sun Co., Inc............................................................................ 50,375
-----------
97,850
-----------
OIL & GAS DRILLING (1.3%)
1,100 Baker Hughes, Inc....................................................................... 42,419
1,150 Dresser Industries, Inc................................................................. 41,113
900 Halliburton Co.......................................................................... 40,444
1,500 Helmerich & Payne, Inc.................................................................. 38,344
1,500 Rowan Companies, Inc.*.................................................................. 39,563
600 Schlumberger, Ltd....................................................................... 44,213
700 Western Atlas, Inc.*.................................................................... 43,619
-----------
289,715
-----------
OIL - EXPLORATION & PRODUCTION (0.8%)
700 Anardarko Petroleum Corp................................................................ 41,300
1,200 Apache Corp............................................................................. 39,750
1,037 Burlington Resources, Inc............................................................... 44,332
1,700 Oryx Energy Co.*........................................................................ 40,800
-----------
166,182
-----------
OIL - INTEGRATED - DOMESTIC (1.7%)
750 Amerada Hess Corp....................................................................... 41,016
600 Atlantic Richfield Co................................................................... 44,625
650 Kerr-McGee Corp......................................................................... 40,706
1,600 Occidental Petroleum Corp............................................................... 40,800
650 Pennzoil Co............................................................................. 42,006
1,000 Phillips Petroleum Co................................................................... 44,000
1,700 Union Pacific Resources Group, Inc...................................................... 38,038
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1,200 Unocal Corp............................................................................. $ 41,250
1,350 USX-Marathon Group...................................................................... 45,309
-----------
377,750
-----------
OIL - INTEGRATED - INTERNATIONAL (1.1%)
500 Amoco Corp.............................................................................. 40,688
550 Chevron Corp............................................................................ 41,147
700 Exxon Corp.............................................................................. 41,519
600 Mobil Corp.............................................................................. 40,875
800 Royal Dutch Petroleum Co. (ADR) (Netherlands)........................................... 41,000
800 Texaco, Inc............................................................................. 41,650
-----------
246,879
-----------
PAPER & FOREST PRODUCTS (1.8%)
1,200 Boise Cascade Corp...................................................................... 38,400
800 Champion International Corp............................................................. 40,950
700 Georgia-Pacific Corp.................................................................... 38,588
900 International Paper Co.................................................................. 41,119
2,100 Louisiana-Pacific Corp.................................................................. 42,131
1,200 Mead Corp............................................................................... 39,000
900 Potlatch Corp........................................................................... 40,050
1,200 Westvaco Corp........................................................................... 38,925
800 Weyerhaeuser Co......................................................................... 39,850
1,200 Willamette Industries, Inc.............................................................. 40,200
-----------
399,213
-----------
PERSONAL CARE (0.6%)
1,600 Alberto-Culver Co. (Class B)............................................................ 47,400
700 Avon Products, Inc...................................................................... 42,000
450 Gillette Co............................................................................. 44,438
-----------
133,838
-----------
PHOTOGRAPHY/IMAGING (0.8%)
700 Eastman Kodak Co........................................................................ 45,675
1,600 Ikon Office Solutions, Inc.............................................................. 50,400
1,000 Polaroid Corp........................................................................... 41,063
550 Xerox Corp.............................................................................. 44,206
-----------
181,344
-----------
PROPERTY - CASUALTY INSURANCE (1.6%)
500 Allstate Corp........................................................................... 44,250
600 Chubb Corp.............................................................................. 45,563
300 Cincinnati Financial Corp............................................................... 38,250
200 General Re Corp......................................................................... 41,625
400 Progressive Corp........................................................................ 43,750
900 SAFECO Corp............................................................................. 44,944
500 St. Paul Companies, Inc................................................................. 43,500
2,000 USF&G Corp.............................................................................. 47,625
-----------
349,507
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PUBLISHING (0.8%)
950 Dow Jones & Co., Inc.................................................................... $ 47,738
700 McGraw-Hill, Inc........................................................................ 48,869
1,100 Meredith Corp........................................................................... 43,106
750 Times Mirror Co. (Class A).............................................................. 43,219
-----------
182,932
-----------
PUBLISHING - NEWSPAPER (0.8%)
700 Gannett Co., Inc........................................................................ 42,350
800 Knight-Ridder Newspapers, Inc........................................................... 44,050
600 New York Times Co. (Class A)............................................................ 39,038
850 Tribune Co.............................................................................. 51,638
-----------
177,076
-----------
RAILROADS (0.5%)
750 CSX Corp................................................................................ 39,750
1,250 Norfolk Southern Corp................................................................... 39,453
650 Union Pacific Corp...................................................................... 39,000
-----------
118,203
-----------
RESTAURANTS (0.8%)
3,500 Darden Restaurants, Inc................................................................. 44,188
850 McDonald's Corp......................................................................... 40,056
1,500 TRICON Global Restaurants, Inc.*........................................................ 40,875
1,850 Wendy's International, Inc.............................................................. 41,278
-----------
166,397
-----------
RETAIL - BUILDING SUPPLIES (0.6%)
700 Home Depot, Inc......................................................................... 42,219
900 Lowe's Companies, Inc................................................................... 45,506
1,400 Sherwin-Williams Co..................................................................... 39,900
-----------
127,625
-----------
RETAIL - COMPUTERS & ELECTRONICS (0.4%)
1,200 Circuit City Stores, Inc................................................................ 40,950
1,200 Tandy Corp.............................................................................. 46,500
-----------
87,450
-----------
RETAIL - DEPARTMENT STORES (1.5%)
1,200 Dillard Department Stores, Inc. (Class A)............................................... 42,150
1,200 Federated Department Stores, Inc.*...................................................... 50,850
850 Harcourt General, Inc................................................................... 45,316
850 May Department Stores Co................................................................ 44,678
750 Mercantile Stores Co., Inc.............................................................. 44,625
900 Nordstrom, Inc.......................................................................... 45,731
700 Penney (J.C.) Co., Inc.................................................................. 47,163
-----------
320,513
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
RETAIL - DRUG STORES (0.8%)
600 CVS Corp................................................................................ $ 39,338
1,500 Longs Drug Stores Corp.................................................................. 43,406
700 Rite Aid Corp........................................................................... 43,706
1,400 Walgreen Co............................................................................. 46,375
-----------
172,825
-----------
RETAIL - FOOD CHAINS (1.2%)
900 Albertson's, Inc........................................................................ 42,919
1,800 American Stores Co...................................................................... 39,150
1,400 Giant Food, Inc. (Class A).............................................................. 45,588
1,600 Great Atlantic & Pacific Tea Co., Inc................................................... 45,600
1,200 Kroger Co.*............................................................................. 46,950
900 Winn-Dixie Stores, Inc.................................................................. 43,875
-----------
264,082
-----------
RETAIL - GENERAL MERCHANDISE (1.0%)
1,000 Costco Companies, Inc.*................................................................. 43,375
600 Dayton-Hudson Corp...................................................................... 43,163
3,900 Kmart Corp.*............................................................................ 42,900
900 Sears, Roebuck & Co..................................................................... 41,456
1,100 Wal-Mart Stores, Inc.................................................................... 43,863
-----------
214,757
-----------
RETAIL - SPECIALTY (1.0%)
1,600 AutoZone, Inc.*......................................................................... 43,900
1,000 Consolidated Stores Corp.*.............................................................. 41,125
1,800 Pep Boys-Manny, Moe & Jack.............................................................. 39,375
1,600 Toys 'R' Us, Inc.*...................................................................... 42,900
2,000 Woolworth Corp.*........................................................................ 43,500
-----------
210,800
-----------
RETAIL - SPECIALTY APPAREL (0.8%)
9,500 Charming Shoppes, Inc.*................................................................. 38,000
1,200 Gap, Inc................................................................................ 46,875
1,700 Limited (The), Inc...................................................................... 45,050
1,300 TJX Companies, Inc...................................................................... 44,038
-----------
173,963
-----------
SAVINGS & LOAN COMPANIES (0.6%)
800 Ahmanson (H.F.) & Co.................................................................... 46,650
500 Golden West Financial Corp.............................................................. 42,219
700 Washington Mutual, Inc.................................................................. 44,975
-----------
133,844
-----------
SEMICONDUCTOR EQUIPMENT (0.4%)
1,200 Applied Materials, Inc.*................................................................ 39,300
1,000 KLA-Tencor Corp.*....................................................................... 37,500
-----------
76,800
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SPECIALTY PRINTING (0.6%)
1,200 Deluxe Corp............................................................................. $ 39,600
1,200 Donnelley (R.R.) & Sons Co.............................................................. 44,775
2,500 Harland (John H.) Co.................................................................... 38,438
-----------
122,813
-----------
STEEL & IRON (1.3%)
1,600 Allegheny Teledyne Inc.................................................................. 39,400
7,900 Armco, Inc.............................................................................. 37,031
4,000 Bethlehem Steel Corp.*.................................................................. 39,500
2,000 Inland Steel Industries, Inc............................................................ 39,875
900 Nucor Corp.............................................................................. 42,863
1,150 USX-U.S. Steel Group, Inc............................................................... 38,381
2,300 Worthington Industries, Inc............................................................. 38,669
-----------
275,719
-----------
TELECOMMUNICATIONS - CELLULAR/WIRELESS (0.2%)
1,000 Airtouch Communications, Inc.*.......................................................... 43,875
-----------
TELECOMMUNICATIONS - LONG DISTANCE (0.8%)
700 AT&T Corp............................................................................... 43,838
1,000 MCI Communications Corp................................................................. 46,438
700 Sprint Corp............................................................................. 41,563
1,400 WorldCom, Inc.*......................................................................... 50,138
-----------
181,977
-----------
TELEPHONES (1.6%)
1,000 ALLTEL Corp............................................................................. 42,750
1,000 Ameritech Corp.......................................................................... 42,938
450 Bell Atlantic Corp...................................................................... 41,653
700 BellSouth Corp.......................................................................... 42,394
1,700 Frontier Corp........................................................................... 44,306
800 GTE Corp................................................................................ 43,650
500 SBC Communications, Inc................................................................. 38,875
900 U.S. West Communications Group.......................................................... 43,313
-----------
339,879
-----------
TEXTILES - APPAREL (0.8%)
1,700 Fruit of the Loom, Inc. (Class A)*...................................................... 40,800
1,100 Liz Claiborne, Inc...................................................................... 44,550
1,600 Russell Corp............................................................................ 39,500
1,100 VF Corp................................................................................. 47,025
-----------
171,875
-----------
TEXTILES - HOME FURNISHINGS (0.2%)
900 Springs Industries, Inc. (Class A)...................................................... 47,363
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TOBACCO (0.4%)
1,050 Philip Morris Companies, Inc............................................................ $ 43,575
1,300 UST, Inc................................................................................ 44,850
-----------
88,425
-----------
TRUCKERS (0.2%)
1,250 Ryder System, Inc....................................................................... 41,875
-----------
UTILITIES - ELECTRIC (5.3%)
1,200 Ameren Corp............................................................................. 43,950
900 American Electric Power Co., Inc........................................................ 44,381
1,500 Baltimore Gas & Electric Co............................................................. 45,563
1,100 Carolina Power & Light Co............................................................... 44,688
1,700 Central & South West Corp............................................................... 46,006
1,200 CINergy Corp............................................................................ 41,400
1,100 Consolidated Edison Co. of New York, Inc................................................ 45,444
1,200 Detroit Edison Co....................................................................... 43,050
1,100 Dominion Resources, Inc................................................................. 43,863
800 Duke Power Co........................................................................... 43,350
1,700 Edison International.................................................................... 45,688
1,550 Entergy Corp............................................................................ 44,369
1,600 FirstEnergy Corp.*...................................................................... 46,400
800 FPL Group, Inc.......................................................................... 45,900
1,200 GPU, Inc................................................................................ 47,175
1,700 Houston Industries, Inc................................................................. 44,413
4,300 Niagara Mohawk Power Corp.*............................................................. 46,494
800 Northern States Power Co................................................................ 42,900
2,050 PacifiCorp.............................................................................. 47,534
2,000 PECO Energy Co.......................................................................... 37,875
1,500 PG & E Corp............................................................................. 44,719
2,000 PP & L Resources, Inc................................................................... 43,750
1,500 Public Service Enterprise Group, Inc.................................................... 46,500
1,900 Southern Co............................................................................. 46,194
1,100 Texas Utilities Co...................................................................... 45,238
1,500 Unicom Corp............................................................................. 46,500
-----------
1,163,344
-----------
UTILITIES - NATURAL GAS (2.2%)
800 Coastal Corp............................................................................ 46,400
600 Columbia Gas System, Inc................................................................ 45,525
700 Consolidated Natural Gas Co............................................................. 38,019
1,100 Eastern Enterprises..................................................................... 45,513
1,200 Enron Corp.............................................................................. 49,725
1,200 NICOR, Inc.............................................................................. 48,300
1,250 ONEOK, Inc.............................................................................. 42,734
1,200 Pacific Enterprises..................................................................... 43,275
1,100 Peoples Energy Corp..................................................................... 41,525
1,000 Sonat, Inc.............................................................................. 43,688
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - VALUE-ADDED MARKET
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1,600 Williams Companies, Inc................................................................. $ 45,600
-----------
490,304
-----------
WASTE MANAGEMENT (0.4%)
1,200 Browning-Ferris Industries, Inc......................................................... 41,475
1,700 Waste Management Inc.................................................................... 39,950
-----------
81,425
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $14,359,063) (a).......................................................... 99.3 % 21,680,008
OTHER ASSETS IN EXCESS OF LIABILITIES...................................................... 0.7 147,912
------ ------------
NET ASSETS................................................................................. 100.0 % $ 21,827,920
------ ------------
------ ------------
</TABLE>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $7,720,997 and the
aggregate gross unrealized depreciation is $400,052, resulting in net
unrealized appreciation of $7,320,945.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (98.0%)
ARGENTINA (0.6%)
BANKING
2,232 Banco de Galicia y Buenos Aires S.A. de C.V. (Class B) (ADR)............................ $ 48,964
-----------
TELECOMMUNICATIONS
1,300 Telefonica de Argentina S.A. (Class B) (ADR)............................................ 45,013
-----------
TOTAL ARGENTINA......................................................................... 93,977
-----------
AUSTRALIA (1.7%)
BANKING
8,000 Westpac Banking Corp., Ltd.............................................................. 54,840
-----------
ENERGY
5,000 Woodside Petroleum Ltd.................................................................. 34,446
-----------
FINANCIAL SERVICES
24,000 Tyndall Australia Ltd................................................................... 40,637
-----------
FOODS & BEVERAGES
30,000 Goodman Fielder Ltd..................................................................... 47,320
-----------
TELECOMMUNICATIONS
2,400 Telstra Corp., Ltd. (ADR)*.............................................................. 108,450
-----------
TOTAL AUSTRALIA......................................................................... 285,693
-----------
BELGIUM (0.3%)
RETAIL
1,000 G.I.B. Holdings Ltd..................................................................... 48,988
-----------
BRAZIL (1.5%)
TELECOMMUNICATIONS
1,400 Telecommunicacoes Brasileiras S.A. (ADR)................................................ 155,400
-----------
UTILITIES - ELECTRIC
7,500 Companhia Paranaense de Energia - Copel (ADR)........................................... 90,000
-----------
TOTAL BRAZIL............................................................................ 245,400
-----------
CANADA (1.7%)
BANKING
2,000 Royal Bank of Canada.................................................................... 104,891
-----------
BIOTECHNOLOGY
5,500 BioChem Pharma, Inc.*................................................................... 112,062
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTERS - SYSTEMS
2,000 Geac Computer Corp., Ltd.*.............................................................. $ 66,630
-----------
TOTAL CANADA............................................................................ 283,583
-----------
CHILE (0.6%)
TELECOMMUNICATIONS
2,000 Compania de Telecommunicaciones de Chile S.A. (ADR)..................................... 48,125
-----------
UTILITIES - ELECTRIC
2,000 Enersis S.A. (ADR)...................................................................... 52,875
-----------
TOTAL CHILE............................................................................. 101,000
-----------
CHINA (0.2%)
TELECOMMUNICATIONS
1,300 China Telecom (Hong Kong) Ltd. (ADR)*................................................... 40,869
-----------
DENMARK (1.4%)
PHARMACEUTICALS
1,000 Novo-Nordisk AS (Series B).............................................................. 143,462
-----------
TRANSPORTATION
700 Kobenhavns Lufthavne AS................................................................. 80,840
-----------
TOTAL DENMARK........................................................................... 224,302
-----------
FINLAND (0.4%)
MANUFACTURING
800 KCI Konecranes International............................................................ 27,451
-----------
PHARMACEUTICALS
1,400 Orion-yhtymae Oy (B Shares)............................................................. 42,350
-----------
TOTAL FINLAND........................................................................... 69,801
-----------
FRANCE (6.3%)
AEROSPACE & DEFENSE
3,000 Thomson CSF............................................................................. 102,765
-----------
AUTOMOTIVE
1,200 Compagnie Generale des Etablissements Michelin (B Shares)............................... 63,910
1,200 Valeo S.A............................................................................... 83,837
-----------
147,747
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKING
1,600 Banque Nationale de Paris............................................................... $ 82,629
-----------
ENERGY
700 Elf Aquitaine S.A....................................................................... 79,015
-----------
FINANCIAL SERVICES
1,100 Compagnie Financiere de Paribas (A Shares).............................................. 98,328
350 Dexia France............................................................................ 41,620
-----------
139,948
-----------
INSURANCE
1,400 AXA-UAP................................................................................. 116,238
-----------
LEISURE
600 Accor S.A............................................................................... 118,033
-----------
MEDIA
700 Havas S.A............................................................................... 49,978
-----------
TELECOMMUNICATIONS
3,000 France Telecom S.A. (ADR)*.............................................................. 127,125
-----------
TELECOMMUNICATIONS EQUIPMENT
600 Alcatel Alsthom......................................................................... 79,569
-----------
TOTAL FRANCE............................................................................ 1,043,047
-----------
GERMANY (2.8%)
APPAREL
400 Adidas AG............................................................................... 58,721
20 Hugo Boss AG (Pref.).................................................................... 28,431
-----------
87,152
-----------
AUTOMOTIVE
90 Bayerische Motoren Werke (BMW) AG....................................................... 71,842
300 MAN AG.................................................................................. 80,536
-----------
152,378
-----------
CHEMICALS
1,200 Bayer AG................................................................................ 45,074
600 SGL Carbon AG........................................................................... 75,451
-----------
120,525
-----------
MACHINERY - DIVERSIFIED
100 Mannesmann AG........................................................................... 56,916
-----------
TELECOMMUNICATIONS
900 Siemens AG.............................................................................. 54,989
-----------
TOTAL GERMANY........................................................................... 471,960
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HONG KONG (2.9%)
BANKING
12,000 Guoco Group Ltd......................................................................... $ 17,846
3,140 HSBC Holdings PLC....................................................................... 69,638
-----------
87,484
-----------
CONGLOMERATES
11,000 Hutchison Whampoa, Ltd.................................................................. 64,723
-----------
REAL ESTATE
15,000 Cheung Kong (Holdings) Ltd.............................................................. 76,620
14,000 New World Development Co., Ltd.......................................................... 33,764
6,000 Sun Hung Kai Properties Ltd............................................................. 30,803
-----------
141,187
-----------
UTILITIES
36,600 Hong Kong & China Gas Co., Ltd.......................................................... 61,528
-----------
UTILITIES - ELECTRIC
23,000 CLP Holdings Ltd........................................................................ 126,406
-----------
TOTAL HONG KONG......................................................................... 481,328
-----------
INDIA (0.4%)
TELECOMMUNICATIONS
5,000 Mahanagar Telephone Nigam Ltd. (GDR)*................................................... 75,312
-----------
ISRAEL (0.3%)
RETAIL
4,000 Supersol Ltd. (ADR)..................................................................... 55,000
-----------
ITALY (2.1%)
BANKING
36,000 Banca Commerciale Italiana.............................................................. 147,419
-----------
ENERGY
1,500 Ente Nazionale Idrocarburi SpA (ADR)*................................................... 87,937
-----------
TELECOMMUNICATIONS
16,000 Telecom Italia SpA...................................................................... 110,825
-----------
TOTAL ITALY............................................................................. 346,181
-----------
JAPAN (6.4%)
AUTOMOTIVE
2,000 Honda Motor Co.......................................................................... 72,656
4,000 Suzuki Motor Co., Ltd................................................................... 36,879
-----------
109,535
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BANKING
18,000 Sakura Bank Ltd......................................................................... $ 67,376
-----------
BUILDING & CONSTRUCTION
5,000 Sekisui House Ltd....................................................................... 41,371
-----------
BUSINESS SERVICES
1,000 Secom Co................................................................................ 63,042
-----------
COMPUTERS
6,000 Fujitsu, Ltd............................................................................ 68,558
-----------
ELECTRONICS
1,000 Sony Corp............................................................................... 92,199
-----------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
1,000 Rohm Co., Ltd........................................................................... 109,535
-----------
FINANCIAL SERVICES
5,000 Nomura Securities Co., Ltd.............................................................. 66,982
-----------
INTERNATIONAL TRADE
10,000 Mitsui & Co............................................................................. 66,351
-----------
MACHINERY
5,000 Minebea Co., Ltd........................................................................ 53,192
-----------
PHARMACEUTICALS
2,000 Terumo Corp............................................................................. 32,151
-----------
REAL ESTATE
5,000 Mitsui Fudosan Co., Ltd................................................................. 49,645
-----------
RESTAURANTS
5 Yoshinoya D & C Co., Ltd................................................................ 47,281
-----------
TELECOMMUNICATIONS
10 Nippon Telegraph & Telephone Corp....................................................... 90,623
-----------
TIRE & RUBBER GOODS
4,000 Bridgestone Corp........................................................................ 96,139
-----------
TOTAL JAPAN............................................................................. 1,053,980
-----------
MALAYSIA (0.5%)
NATURAL GAS
20,000 Petronas Gas Berhad..................................................................... 44,205
-----------
UTILITIES - ELECTRIC
20,000 Tenaga Nasional Berhad.................................................................. 33,931
-----------
TOTAL MALAYSIA.......................................................................... 78,136
-----------
MEXICO (2.8%)
BANKING
80,000 Grupo Financiero Bancomer, S.A. de C.V. (Series B)*..................................... 42,364
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BEVERAGES - SOFT DRINKS
6,900 Coca-Cola Femsa S.A. de C.V. (ADR)...................................................... $ 127,650
-----------
BUILDING MATERIALS
15,087 Cemex S.A. de C.V. (B Shares)*.......................................................... 63,843
-----------
CONGLOMERATES
1,207 DESC S.A. de C.V. (Series C) (ADR)...................................................... 35,456
7,000 Grupo Carso S.A. de C.V. (Series A1).................................................... 39,882
-----------
75,338
-----------
PAPER & FOREST PRODUCTS
14,000 Kimberly-Clark de Mexico S.A. de C.V. (A Shares)........................................ 60,071
-----------
TELECOMMUNICATIONS
2,000 Telefonos de Mexico S.A. de C.V. (Series L) (ADR)....................................... 98,500
-----------
TOTAL MEXICO............................................................................ 467,766
-----------
NETHERLANDS (4.0%)
BUILDING MATERIALS
800 Hunter Douglas NV....................................................................... 30,266
-----------
BUSINESS & PUBLIC SERVICES
1,750 Randstad Holdings NV.................................................................... 70,452
-----------
CHEMICALS
750 Akzo Nobel NV........................................................................... 135,762
-----------
ELECTRONICS
2,000 Philips Electronics NV.................................................................. 135,034
-----------
FOOD PROCESSING
1,000 Koninklijke Numico NV................................................................... 31,721
-----------
HOUSEHOLD FURNISHINGS & APPLIANCES
1,400 Koninklijke Ahrend Groep NV............................................................. 42,577
-----------
INSURANCE
500 Aegon NV................................................................................ 47,703
875 ING Groep NV............................................................................ 40,064
-----------
87,767
-----------
PUBLISHING
2,900 Elsevier NV............................................................................. 49,091
-----------
RETAIL
2,700 Koninklijke Ahold NV.................................................................... 74,385
-----------
TOTAL NETHERLANDS....................................................................... 657,055
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PERU (0.2%)
BANKING
7,000 Banco Wiese (ADR)....................................................................... $ 34,125
-----------
PHILIPPINES (0.3%)
TELECOMMUNICATIONS
1,700 Philippine Long Distance Telephone Co. (ADR)............................................ 44,625
-----------
PORTUGAL (0.9%)
TELECOMMUNICATIONS
1,600 Portugal Telecom S.A. (ADR)............................................................. 81,400
500 Telecel-Comunicacoes Pessoais S.A.*..................................................... 64,112
-----------
TOTAL PORTUGAL.......................................................................... 145,512
-----------
SINGAPORE (0.9%)
BANKING
4,500 Development Bank of Singapore, Ltd...................................................... 28,905
-----------
UTILITIES - TELECOMMUNICATIONS
59,000 Singapore Telecommunications, Ltd....................................................... 117,139
-----------
TOTAL SINGAPORE......................................................................... 146,044
-----------
SOUTH AFRICA (0.2%)
COMPUTERS - SYSTEMS
2,462 Dimension Data Holdings Ltd. (GDR) - 144A** *........................................... 35,084
-----------
SPAIN (2.2%)
BANKING
2,000 Banco Popular Espanol S.A............................................................... 150,870
-----------
RETAIL
5,100 Centros Comerciales Pryca S.A........................................................... 89,768
-----------
TELECOMMUNICATIONS
700 Telefonica de Espana S.A. (ADR)......................................................... 68,338
-----------
UTILITIES - ELECTRIC
2,800 Endesa S.A.............................................................................. 53,978
-----------
TOTAL SPAIN............................................................................. 362,954
-----------
SWEDEN (0.9%)
AUTOMOTIVE
2,200 Scania AB (A Shares).................................................................... 47,752
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MACHINERY
2,300 Kalmar Industries AB.................................................................... $ 35,031
-----------
MANUFACTURING
1,200 Assa Abloy AB (Series B)................................................................ 29,598
-----------
TELECOMMUNICATIONS
1,000 Ericsson (L.M.) Telephone Co. AB (Series "B" Free)...................................... 39,217
-----------
TOTAL SWEDEN............................................................................ 151,598
-----------
SWITZERLAND (2.8%)
BUILDING MATERIALS
50 Holderbank Financiere Glarus AG (B Shares).............................................. 41,192
-----------
ENGINEERING
40 ABB AG - Bearer......................................................................... 50,949
-----------
FOOD PROCESSING
100 Nestle S.A.............................................................................. 159,553
-----------
PHARMACEUTICALS
32 Novartis AG............................................................................. 54,851
30 Novartis AG - Bearer.................................................................... 51,524
10 Roche Holdings AG....................................................................... 103,930
-----------
210,305
-----------
TOTAL SWITZERLAND....................................................................... 461,999
-----------
TAIWAN (0.3%)
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
2,000 Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)*..................................... 47,500
-----------
UNITED KINGDOM (15.9%)
AEROSPACE
16,453 Rolls-Royce PLC......................................................................... 55,633
-----------
AEROSPACE & DEFENSE
3,996 British Aerospace PLC................................................................... 103,787
-----------
AUTO PARTS - ORIGINAL EQUIPMENT
11,000 BBA Group PLC........................................................................... 64,507
26,200 LucasVarity PLC......................................................................... 88,591
-----------
153,098
-----------
BANKING
3,600 Abbey National PLC...................................................................... 72,331
7,103 National Westminster Bank PLC........................................................... 127,050
-----------
199,381
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BEVERAGES
5,800 Bass PLC................................................................................ $ 91,901
-----------
BUILDING & CONSTRUCTION
5,963 Blue Circle Industries PLC.............................................................. 31,559
-----------
BUSINESS SERVICES
3,400 Compass Group PLC....................................................................... 45,986
3,000 Reuters Holdings PLC.................................................................... 26,953
-----------
72,939
-----------
COMPUTER SOFTWARE & SERVICES
3,500 SEMA Group PLC.......................................................................... 99,194
-----------
CONGLOMERATES
9,302 Tomkins PLC............................................................................. 50,143
-----------
ELECTRONICS
6,000 General Electric Co. PLC................................................................ 37,538
-----------
ENERGY
17,300 Shell Transport & Trading Co. PLC....................................................... 117,560
-----------
FOOD PROCESSING
10,000 Devro PLC............................................................................... 64,850
6,000 Unilever PLC............................................................................ 47,216
-----------
112,066
-----------
HOUSEHOLD PRODUCTS
7,000 Reckitt & Colman PLC.................................................................... 112,630
-----------
INSURANCE
4,200 Britannic Assurance PLC................................................................. 81,985
5,700 Commercial Union PLC.................................................................... 92,178
10,731 Royal & Sun Alliance Insurance Group PLC................................................ 121,477
-----------
295,640
-----------
LEISURE
2,671 Granada Group PLC....................................................................... 42,017
15,000 Rank Group PLC.......................................................................... 73,446
-----------
115,463
-----------
PHARMACEUTICALS
12,000 British Biotech PLC*.................................................................... 26,855
8,286 Glaxo Wellcome PLC...................................................................... 222,383
-----------
249,238
-----------
PUBLISHING
7,000 Reed International PLC.................................................................. 72,152
-----------
RETAIL
6,200 Next PLC................................................................................ 74,185
9,500 Sainsbury (J.) PLC...................................................................... 77,126
-----------
151,311
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS
10,000 British Telecommunications PLC.......................................................... $ 95,560
4,300 Esat Telecom Group PLC (ADR)*........................................................... 72,563
9,602 Securicor PLC........................................................................... 51,733
12,000 Vodafone Group PLC...................................................................... 92,227
-----------
312,083
-----------
TRANSPORTATION
7,811 British Airways PLC..................................................................... 65,710
-----------
UTILITIES - ELECTRIC
11,500 National Power PLC...................................................................... 125,298
-----------
TOTAL UNITED KINGDOM.................................................................... 2,624,324
-----------
UNITED STATES (36.5%)
AEROSPACE & DEFENSE
6,200 Loral Space & Communications Ltd.*...................................................... 136,788
-----------
ALUMINUM
2,100 Aluminum Co. of America................................................................. 160,387
-----------
AUTOMOTIVE
3,800 Chrysler Corp........................................................................... 132,287
3,000 Ford Motor Co........................................................................... 153,000
-----------
285,287
-----------
BANKS
2,300 First Tennessee National Corp........................................................... 135,412
-----------
BEVERAGES - SOFT DRINKS
3,700 PepsiCo, Inc............................................................................ 133,431
-----------
BUILDING MATERIALS
3,200 Champion International Corp............................................................. 163,800
-----------
CHEMICALS
1,400 Dow Chemical Co......................................................................... 126,000
4,500 Georgia Gulf Corp....................................................................... 146,812
3,200 Monsanto Co............................................................................. 151,800
-----------
424,612
-----------
COMMERCIAL SERVICES
10,000 Actrade International, Ltd.*............................................................ 221,250
-----------
COMMUNICATIONS - EQUIPMENT & SOFTWARE
2,400 Cisco Systems, Inc.*.................................................................... 151,350
-----------
COMPUTERS
5,100 Gateway 2000, Inc.*..................................................................... 192,206
-----------
COMPUTERS - SYSTEMS
2,800 Diebold, Inc............................................................................ 139,300
2,300 Hewlett-Packard Co...................................................................... 138,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
3,500 Sun Microsystems, Inc.*................................................................. $ 167,781
-----------
445,081
-----------
ELECTRICAL EQUIPMENT
2,000 Honeywell, Inc.......................................................................... 140,125
-----------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
1,800 Intel Corp.............................................................................. 145,800
-----------
ENTERTAINMENT
1,400 Walt Disney Co.......................................................................... 149,188
-----------
FINANCIAL SERVICES
1,700 American Express Co..................................................................... 142,269
2,500 Fannie Mae.............................................................................. 154,375
2,500 Travelers Group, Inc.................................................................... 123,750
-----------
420,394
-----------
FOODS
1,900 General Mills, Inc...................................................................... 141,431
-----------
HOUSEHOLD FURNISHINGS & APPLIANCES
4,100 Maytag Corp............................................................................. 157,594
-----------
HOUSEHOLD PRODUCTS - NON-DURABLE
2,000 Colgate-Palmolive Co.................................................................... 146,500
-----------
MEDICAL SERVICES
3,100 HBO & Co................................................................................ 162,169
-----------
OFFSHORE DRILLING
2,900 Diamond Offshore Drilling, Inc.......................................................... 129,594
-----------
OIL - INTEGRATED - DOMESTIC
1,800 Atlantic Richfield Co................................................................... 133,875
-----------
OIL - INTEGRATED - INTERNATIONAL
1,800 Chevron Corp............................................................................ 134,663
2,200 Exxon Corp.............................................................................. 130,488
2,000 Mobil Corp.............................................................................. 136,250
-----------
401,401
-----------
OIL WELL EQUIPMENT & SERVICE
1,800 Schlumberger, Ltd....................................................................... 132,638
-----------
PHARMACEUTICALS
2,100 Abbott Laboratories..................................................................... 148,706
2,000 American Home Products Corp............................................................. 190,875
-----------
339,581
-----------
RETAIL - SPECIALTY
4,100 Bed Bath & Beyond, Inc.*................................................................ 162,463
5,700 Pep Boys-Manny, Moe & Jack.............................................................. 124,688
-----------
287,151
-----------
RETAIL - SPECIALTY APPAREL
3,750 Gap, Inc................................................................................ 146,484
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SAVINGS & LOAN COMPANIES
2,300 Ahmanson (H.F.) & Co.................................................................... $ 134,119
1,500 Golden West Financial Corp.............................................................. 126,656
-----------
260,775
-----------
STEEL
2,800 Nucor Corp.............................................................................. 133,350
-----------
TRUCKERS
6,000 Yellow Corp.*........................................................................... 155,250
-----------
TOTAL UNITED STATES..................................................................... 6,032,904
-----------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST $13,567,636)........................................................... 16,210,047
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ---------
<C> <S> <C>
SHORT-TERM INVESTMENT (3.9%)
REPURCHASE AGREEMENT
$ 637 The Bank of New York 5.375% due 02/02/98 (dated 01/30/98; proceeds $637,783) (IDENTIFIED
COST $637,497) (a).................................................................... 637,497
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $14,205,133) (b).......................................................... 101.9 % 16,847,544
LIABILITIES IN EXCESS OF OTHER ASSETS...................................................... (1.9) (307,800)
------ ------------
NET ASSETS................................................................................. 100.0 % $ 16,539,744
------ ------------
------ ------------
</TABLE>
- ---------------------
ADR American Depository Receipt.
GDR Global Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
(a) Collateralized by $632,131 U.S. Treasury Note 6.75% due 05/31/99 valued at
$650,247.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $3,318,087 and the
aggregate gross unrealized depreciation is $675,676, resulting in net
unrealized appreciation of $2,642,411.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JANUARY 31, 1998:
<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS TO EXCHANGE DELIVERY APPRECIATION/
RECEIVE FOR DATE (DEPRECIATION)
- --------------------------------------------------------------------
<S> <C> <C> <C>
ESP 5,233,996 $ 34,075 02/02/98 $ (330)
L 22,579 $ 37,097 02/03/98 (215)
$ 27,614 DEM 50,376 02/04/98 71
$ 88,025 FRF 540,474 02/27/98 (136)
FRF 306,396 $ 50,586 02/27/98 (607)
-------
Net unrealized depreciation ............... $ (1,217)
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - GLOBAL EQUITY
SUMMARY OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Aerospace.......................................................................... $ 55,633 0.3 %
Aerospace & Defense................................................................ 343,340 2.1
Aluminum........................................................................... 160,387 1.0
Apparel............................................................................ 87,152 0.5
Auto Parts - Original Equipment.................................................... 153,098 0.9
Automotive......................................................................... 742,699 4.5
Banking............................................................................ 1,049,248 6.4
Banks.............................................................................. 135,412 0.8
Beverages.......................................................................... 91,901 0.6
Beverages - Soft Drinks............................................................ 261,081 1.6
Biotechnology...................................................................... 112,062 0.7
Building & Construction............................................................ 72,930 0.4
Building Materials................................................................. 299,101 1.8
Business & Public Services......................................................... 70,452 0.4
Business Services.................................................................. 135,981 0.8
Chemicals.......................................................................... 680,899 4.1
Commercial Services................................................................ 221,250 1.3
Communications - Equipment & Software.............................................. 151,350 0.9
Computer Software & Services....................................................... 99,194 0.6
Computers.......................................................................... 260,764 1.6
Computers - Systems................................................................ 546,795 3.3
Conglomerates...................................................................... 190,204 1.2
Electrical Equipment............................................................... 140,125 0.9
Electronics........................................................................ 264,771 1.6
Electronics - Semiconductors/Components............................................ 302,835 1.8
Energy............................................................................. 318,958 1.9
Engineering........................................................................ 50,949 0.3
Entertainment...................................................................... 149,188 0.9
Financial Services................................................................. 667,961 4.0
Food Processing.................................................................... 303,340 1.8
Foods.............................................................................. 141,431 0.9
Foods & Beverages.................................................................. 47,320 0.3
Household Furnishings & Appliances................................................. 200,171 1.2
Household Products................................................................. 112,630 0.7
Household Products - Non - Durable................................................. 146,500 0.9
Insurance.......................................................................... 499,645 3.0
International Trade................................................................ 66,351 0.4
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Leisure............................................................................ $ 233,496 1.4 %
Machinery.......................................................................... 88,223 0.5
Machinery - Diversified............................................................ 56,916 0.3
Manufacturing...................................................................... 57,049 0.3
Media.............................................................................. 49,978 0.3
Medical Services................................................................... 162,169 1.0
Natural Gas........................................................................ 44,205 0.3
Offshore Drilling.................................................................. 129,594 0.8
Oil - Integrated - Domestic........................................................ 133,875 0.8
Oil - Integrated - International................................................... 401,401 2.4
Oil Well Equipment & Service....................................................... 132,638 0.8
Paper & Forest Products............................................................ 60,071 0.4
Pharmaceuticals.................................................................... 1,017,087 6.2
Publishing......................................................................... 121,243 0.7
Real Estate........................................................................ 190,832 1.2
Repurchase Agreement............................................................... 637,497 3.9
Restaurants........................................................................ 47,281 0.3
Retail............................................................................. 419,452 2.5
Retail - Specialty................................................................. 287,151 1.7
Retail - Specialty Apparel......................................................... 146,484 0.9
Savings & Loan Companies........................................................... 260,775 1.6
Steel.............................................................................. 133,350 0.8
Telecommunications................................................................. 1,565,006 9.5
Telecommunications Equipment....................................................... 79,569 0.5
Tire & Rubber Goods................................................................ 96,139 0.6
Transportation..................................................................... 146,550 0.9
Truckers........................................................................... 155,250 0.9
Utilities.......................................................................... 61,528 0.4
Utilities - Electric............................................................... 482,488 2.9
Utilities - Telecommunications..................................................... 117,139 0.7
----------- -----
$16,847,544 101.9 %
----------- -----
----------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Common Stocks.................................................................. $16,181,616 97.8 %
Preferred Stock................................................................ 28,431 0.2
Short-Term Investment.......................................................... 637,497 3.9
----------- -----
$16,847,544 101.9 %
----------- -----
----------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (68.6%)
AEROSPACE & DEFENSE (2.0%)
3,260 General Motors Corp. (Class H).......................................................... $ 112,877
3,100 Honeywell, Inc.......................................................................... 217,194
1,300 Thiokol Corp............................................................................ 112,125
-----------
442,196
-----------
AIRLINES (1.0%)
4,875 Continental Airlines, Inc. (Class B)*................................................... 226,078
-----------
ALUMINUM (0.9%)
2,700 Aluminum Co. of America................................................................. 206,212
-----------
AUTOMOTIVE (2.0%)
6,000 Chrysler Corp........................................................................... 208,875
4,460 Ford Motor Co........................................................................... 227,460
-----------
436,335
-----------
BANKS - MONEY CENTER (1.7%)
1,800 Chase Manhattan Corp.................................................................... 192,937
1,550 Citicorp................................................................................ 184,450
-----------
377,387
-----------
BANKS - REGIONAL (1.9%)
3,350 NationsBank Corp........................................................................ 201,000
750 Wells Fargo & Co........................................................................ 231,750
-----------
432,750
-----------
BEVERAGES - SOFT DRINKS (0.9%)
5,640 PepsiCo Inc............................................................................. 203,392
-----------
BIOTECHNOLOGY (0.2%)
2,500 BioChem Pharma, Inc. (Canada)*.......................................................... 50,937
-----------
BROADCAST MEDIA (0.8%)
2,420 Clear Channel Communications, Inc.*..................................................... 186,340
-----------
CABLE/CELLULAR (1.2%)
8,960 U.S. West Media Group, Inc.*............................................................ 266,000
-----------
CHEMICALS (2.6%)
2,500 Dow Chemical Co......................................................................... 225,000
880 Du Pont (E.I.) De Nemours & Co., Inc.................................................... 49,830
1,650 Georgia Gulf Corp....................................................................... 53,831
5,500 Monsanto Co............................................................................. 260,906
-----------
589,567
-----------
COMMUNICATIONS EQUIPMENT (3.3%)
1,870 Bay Networks, Inc.*..................................................................... 50,841
4,095 Cisco Systems, Inc.*.................................................................... 258,241
2,500 Lucent Technologies Inc................................................................. 221,250
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
3,830 Tellabs, Inc.*.......................................................................... $ 195,809
-----------
726,141
-----------
COMPUTER SOFTWARE (1.8%)
1,070 HBO & Co................................................................................ 55,974
1,620 Microsoft Corp.*........................................................................ 241,684
2,000 Network Associates, Inc.*............................................................... 108,000
-----------
405,658
-----------
COMPUTERS (4.2%)
2,220 Dell Computer Corp.*.................................................................... 220,751
4,730 Diebold, Inc............................................................................ 235,318
6,330 Gateway 2000, Inc.*..................................................................... 238,562
4,880 Sun Microsystems, Inc.*................................................................. 233,935
-----------
928,566
-----------
CONSUMER PRODUCTS (1.0%)
3,000 Colgate-Palmolive Co.................................................................... 219,750
-----------
ELECTRICAL EQUIPMENT (1.6%)
1,800 Emerson Electric Co..................................................................... 108,900
3,160 General Electric Co..................................................................... 244,900
-----------
353,800
-----------
ENGINEERING & CONSTRUCTION (0.5%)
2,900 Fluor Corp.............................................................................. 109,294
-----------
ENTERTAINMENT (0.2%)
500 Walt Disney Co.......................................................................... 53,281
-----------
FINANCIAL SERVICES (2.9%)
2,660 American Express Co..................................................................... 222,609
3,400 Fannie Mae.............................................................................. 209,950
4,440 Travelers Group, Inc.................................................................... 219,780
-----------
652,339
-----------
FOODS (2.1%)
3,200 General Mills, Inc...................................................................... 238,200
5,100 Kellogg Co.............................................................................. 235,556
-----------
473,756
-----------
HEALTHCARE - HMOS (0.8%)
9,200 Humana, Inc.*........................................................................... 184,575
-----------
HOUSEHOLD APPLIANCES (1.1%)
6,630 Maytag Corp............................................................................. 254,841
-----------
INSURANCE (4.0%)
2,250 Ace, Ltd. (Bermuda)..................................................................... 209,391
2,000 American International Group, Inc....................................................... 220,625
3,080 Chubb Corp.............................................................................. 233,888
4,940 Equitable Companies, Inc................................................................ 227,240
-----------
891,144
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNET (0.9%)
2,100 America Online, Inc.*................................................................... $ 200,944
-----------
LIFE & HEALTH INSURANCE (0.2%)
1,170 Conseco, Inc............................................................................ 53,528
-----------
OFFICE EQUIPMENT & SUPPLIES (0.2%)
1,700 IKON Office Solutions, Inc.............................................................. 53,550
-----------
OIL - INTEGRATED - DOMESTIC (1.8%)
3,600 Amerada Hess Corp....................................................................... 196,875
2,670 Atlantic Richfield Co................................................................... 198,581
-----------
395,456
-----------
OIL - INTEGRATED - INTERNATIONAL (4.0%)
1,500 Chevron Corp............................................................................ 112,219
3,420 Exxon Corp.............................................................................. 202,849
2,960 Mobil Corp.............................................................................. 201,650
3,880 Royal Dutch Petroleum Co. (ADR) (Netherlands)........................................... 198,850
3,540 Texaco, Inc............................................................................. 184,301
-----------
899,869
-----------
PAPER PRODUCTS (1.7%)
4,340 Bowater, Inc............................................................................ 212,660
3,400 Champion International Corp............................................................. 174,038
-----------
386,698
-----------
PHARMACEUTICALS (5.6%)
3,400 Abbott Laboratories..................................................................... 240,763
3,050 American Home Products Corp............................................................. 291,084
3,660 Johnson & Johnson....................................................................... 244,991
3,520 Lilly (Eli) & Co........................................................................ 237,600
1,570 Warner-Lambert Co....................................................................... 236,285
-----------
1,250,723
-----------
RAILROAD EQUIPMENT (0.5%)
2,400 Trinity Industries, Inc................................................................. 108,600
-----------
RETAIL - DEPARTMENT STORES (1.7%)
15,500 Kmart Corp.*............................................................................ 170,500
4,070 May Department Stores Co................................................................ 213,929
-----------
384,429
-----------
RETAIL - SPECIALTY (5.1%)
5,200 Bed Bath & Beyond, Inc.*................................................................ 206,050
5,570 Costco Companies, Inc.*................................................................. 241,599
4,000 Home Depot, Inc......................................................................... 241,250
3,590 Payless ShoeSource, Inc.*............................................................... 233,574
5,000 Pep Boys-Manny, Moe & Jack.............................................................. 109,375
4,600 Pier 1 Imports, Inc..................................................................... 107,525
-----------
1,139,373
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
RETAIL - SPECIALTY APPAREL (2.3%)
6,555 Gap, Inc. (The)......................................................................... $ 256,055
8,530 Wet Seal, Inc. (Class A)*............................................................... 260,698
-----------
516,753
-----------
SAVINGS & LOAN ASSOCIATIONS (1.2%)
540 Golden West Financial Corp.............................................................. 45,596
3,300 Washington Mutual, Inc.................................................................. 212,025
-----------
257,621
-----------
SEMICONDUCTORS (0.9%)
2,430 Intel Corp.............................................................................. 196,830
-----------
STEEL (0.9%)
4,130 Nucor Corp.............................................................................. 196,691
-----------
TELECOMMUNICATIONS (0.9%)
6,280 Winstar Communications, Inc.*........................................................... 205,278
-----------
TOBACCO (1.0%)
5,300 Philip Morris Companies, Inc............................................................ 219,950
-----------
TRANSPORTATION - MISCELLANEOUS (0.2%)
740 Airborne Freight Corp................................................................... 52,633
-----------
TRUCKERS (0.8%)
6,790 Yellow Corp.*........................................................................... 175,691
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $12,748,839)........................................................... 15,364,956
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ---------
<C> <S> <C>
CORPORATE BONDS (4.1%)
BANKS (1.9%)
$ 100 Central Fidelity Capital I Inc. (Series A)
6.594%+ due 04/15/27.................................................................. 101,925
100 Centura Capital Trust I - 144A**
8.845% due 06/01/27................................................................... 111,500
100 MBNA Capital I (Series A)
8.278% due 12/01/26................................................................... 104,288
100 Norwest Financial, Inc.
6.20% due 02/15/01.................................................................... 101,140
-----------
418,853
-----------
BROKERAGE (0.5%)
100 Bear Stearns Co., Inc.
6.75% due 12/15/07.................................................................... 101,716
-----------
CABLE & TELECOMMUNICATIONS (0.5%)
100 Time Warner Entertainment Co.
8.375% due 03/15/23................................................................... 114,351
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES - STRATEGIST
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OIL - DOMESTIC (0.3%)
$ 50 Occidental Petroleum Corp.
11.125% due 08/01/10.................................................................. $ 69,469
-----------
OIL - INTEGRATED - DOMESTIC (0.4%)
100 Mitchell Energy & Development Corp.
6.75% due 02/15/04.................................................................... 100,556
-----------
RECREATION (0.5%)
100 Carnival Cruise Lines (Panama)
7.20% due 10/01/23.................................................................... 104,848
-----------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $886,461).............................................................. 909,793
-----------
U.S. GOVERNMENT OBLIGATIONS (17.2%)
400 U.S. Treasury Bond 6.50% due 11/15/26................................................... 434,880
200 U.S. Treasury Bond 6.625% due 02/15/27.................................................. 221,034
315 U.S. Treasury Bond 6.875% due 08/15/25.................................................. 357,254
150 U.S. Treasury Bond 7.625% due 02/15/25.................................................. 185,241
550 U.S. Treasury Note 5.125% due 11/30/98.................................................. 549,224
350 U.S. Treasury Note 5.625% due 11/30/00.................................................. 352,418
200 U.S. Treasury Note 5.75% due 08/15/03................................................... 202,894
750 U.S. Treasury Note 5.875% due 04/30/98.................................................. 750,938
50 U.S. Treasury Note 6.375% due 01/15/99.................................................. 50,505
360 U.S. Treasury Note 6.875% due 08/31/99.................................................. 368,388
100 U.S. Treasury Note 6.875% due 05/15/06.................................................. 108,634
240 U.S. Treasury Note 7.25% due 05/15/04................................................... 262,490
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $3,690,528)............................................................ 3,843,900
-----------
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (9.9%)
U.S. GOVERNMENT AGENCY (a) (8.9%)
$ 2,000 Federal Home Loan Mortgage Corp. 5.57% due 02/02/98 (AMORTIZED COST $1,999,691)......... $ 1,999,691
REPURCHASE AGREEMENT (1.0%)
231 The Bank of New York 5.375% due 02/02/98 (dated 01/30/98;
proceeds $231,243) (b) (IDENTIFIED COST $231,139)..................................... 231,139
-----------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $2,230,830)............................................................ 2,230,830
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $19,556,658) (c).......................................................... 99.8 % 22,349,479
OTHER ASSETS IN EXCESS OF LIABILITIES...................................................... 0.2 43,305
------ ------------
NET ASSETS................................................................................. 100.0 % $ 22,392,784
------ ------------
------ ------------
</TABLE>
- ---------------------
ADR American Depository Receipt.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
+ Floating rate security. Coupon rate shown is the rate in effect at January
31, 1998.
(a) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(b) Collateralized by $229,194 U.S. Treasury Note 6.75% due 05/31/99 valued at
$235,762.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $3,083,220 and the
aggregate gross unrealized depreciation is $290,399, resulting in net
unrealized appreciation of $2,792,821.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
JANUARY 31, 1998 (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*...................... $ 14,625,506 $ 1,328,414 $ 9,122,256 $ 2,214,105
Cash.......................... 6,323 3,934 -- 3,102
Receivable for:
Investments sold.......... -- -- -- --
Shares of beneficial
interest sold........... 218 -- 11,954 17,687
Dividends................. -- -- -- --
Interest.................. -- -- 68,587 40,162
Foreign withholding taxes
reclaimed............... -- -- -- --
Prepaid expenses and other
assets...................... 24,491 14,766 16,932 15,312
Receivable from affiliate..... -- 13,513 3,774 9,215
------------ -------------- -------------- --------------
TOTAL ASSETS............. 14,656,538 1,360,627 9,223,503 2,299,583
------------ -------------- -------------- --------------
LIABILITIES:
Payable for:
Investments purchased..... -- -- -- --
Shares of beneficial
interest repurchased.... 75,004 13 73,280 17,685
Dividends to
shareholders............ -- -- 2,887 1,552
Investment management
fee..................... 1,518 -- -- --
Payable to bank............... -- -- -- --
Accrued expenses and other
payables.................... 20,247 13,129 13,399 15,208
Organizational expenses
payable..................... 5,441 5,596 5,494 5,507
------------ -------------- -------------- --------------
TOTAL LIABILITIES........ 102,210 18,738 95,060 39,952
------------ -------------- -------------- --------------
NET ASSETS:
Paid-in-capital............... 14,554,269 1,341,889 8,848,631 2,293,628
Accumulated undistributed net
investment income (loss).... 59 -- 1,523 --
Accumulated undistributed net
realized gain (loss)........ -- -- 20,393 (86,721)
Net unrealized appreciation... -- -- 257,896 52,724
------------ -------------- -------------- --------------
NET ASSETS............... $ 14,554,328 $ 1,341,889 $ 9,128,443 $ 2,259,631
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
*IDENTIFIED COST......... $ 14,625,506 $ 1,328,414 $ 8,864,360 $ 2,161,381
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
SHARES OF BENEFICIAL
INTEREST OUTSTANDING..... 14,554,269 1,343,135 907,586 231,029
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
NET ASSET VALUE PER SHARE
(UNLIMITED AUTHORIZED SHARES
OF $.01 PAR VALUE)............ $1.00 $1.00 $10.06 $9.78
------------ -------------- -------------- --------------
------------ -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1998 (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*...................... $51,961,912 $3,278,978 $108,676,912 $ 5,781,104 $21,680,008 $16,847,544 $22,349,479
Cash.......................... 22,586 6,336 -- -- -- -- --
Receivable for:
Investments sold.......... 3,730,008 64,521 1,094,766 -- 1,808,050 115,705 --
Shares of beneficial
interest sold........... 128,546 6,606 132,946 7,995 20,597 43,821 42,041
Dividends................. 34,902 474 145,893 20,148 20,800 11,090 11,339
Interest.................. 55,955 -- -- 61 -- 190 84,739
Foreign withholding taxes
reclaimed............... 102 -- -- 879 -- 9,627 --
Prepaid expenses and other
assets...................... 18,335 9,813 23,369 12,180 15,058 14,726 17,968
Receivable from affiliate..... -- 10,073 -- 4,399 -- -- --
----------- ---------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS............. 55,952,346 3,376,801 110,073,886 5,826,766 23,544,513 17,042,703 22,505,566
----------- ---------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for:
Investments purchased..... 4,165,686 84,655 219,824 -- 766,461 384,629 50,490
Shares of beneficial
interest repurchased.... 73,077 127,301 536,067 82,058 2,166 90,818 31,313
Dividends to
shareholders............ -- -- -- -- -- -- --
Investment management
fee..................... 25,936 -- 69,123 -- 9,635 2,005 7,625
Payable to bank............... -- -- 2,776,964 -- 916,944 -- --
Accrued expenses and other
payables.................... 26,426 13,659 25,077 13,463 15,700 19,998 17,853
Organizational expenses
payable..................... 5,687 5,687 5,501 5,509 5,687 5,509 5,501
----------- ---------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES........ 4,296,812 231,302 3,632,556 101,030 1,716,593 502,959 112,782
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSETS:
Paid-in-capital............... 42,372,269 2,629,962 80,897,846 4,191,598 13,822,383 14,340,215 20,050,426
Accumulated undistributed net
investment income (loss).... (9,930) (12,000) 210,699 22,892 4,120 (29,347) 40,488
Accumulated undistributed net
realized gain (loss)........ 2,935,155 66,264 3,759,096 144,310 680,472 (412,723) (490,951)
Net unrealized appreciation... 6,358,040 461,273 21,573,689 1,366,936 7,320,945 2,641,599 2,792,821
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSETS............... $51,655,534 $3,145,499 $106,441,330 $ 5,725,736 $21,827,920 $16,539,744 $22,392,784
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
*IDENTIFIED COST......... $45,603,872 $2,817,705 $87,103,223 $ 4,414,168 $14,359,063 $14,205,133 $19,556,658
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
SHARES OF BENEFICIAL
INTEREST OUTSTANDING..... 3,619,409 221,216 6,067,310 416,454 1,201,316 1,294,028 1,745,060
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE PER SHARE
(UNLIMITED AUTHORIZED SHARES
OF $.01 PAR VALUE)............ $14.27 $14.22 $17.54 $13.75 $18.17 $12.78 $12.83
----------- ---------- ----------- ----------- ----------- ----------- -----------
----------- ---------- ----------- ----------- ----------- ----------- -----------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JANUARY 31, 1998 (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...................... $ 513,192 $ 70,286 $ 342,206 $ 78,148
Dividends..................... -- -- -- --
------------- ------------- ------------- -------------
TOTAL INCOME............. 513,192 70,286 342,206 78,148
------------- ------------- ------------- -------------
EXPENSES
Investment management fee..... 45,737 6,359 32,484 7,860
Transfer agent fees and
expenses.................... 29,090 3,091 28,410 6,787
Shareholder reports and
notices..................... 2,090 2,272 3,073 1,257
Professional fees............. 7,639 6,984 9,340 8,204
Trustees' fees and expenses... 654 194 191 161
Registration fees............. 25,676 8,283 6,649 9,771
Custodian fees................ 5,784 3,425 1,414 1,981
Organizational expenses....... 1,127 1,284 1,198 1,189
Other......................... 867 1,112 1,353 1,449
------------- ------------- ------------- -------------
TOTAL EXPENSES........... 118,664 33,004 84,112 38,659
Less: amounts
waived/reimbursed........... (27,190) (20,286) (34,137) (26,618)
------------- ------------- ------------- -------------
NET EXPENSES............. 91,474 12,718 49,975 12,041
------------- ------------- ------------- -------------
NET INVESTMENT INCOME
(LOSS)................... 421,718 57,568 292,231 66,107
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss) on:
Investments............... -- -- 20,884 4,486
Foreign exchange
transactions............ -- -- -- --
------------- ------------- ------------- -------------
TOTAL GAIN (LOSS)........ -- -- 20,884 4,486
------------- ------------- ------------- -------------
Net change in unrealized
appreciation on:
Investments............... -- -- 120,275 20,698
Translation of forward
foreign currency
contracts, other assets
and liabilities
denominated in foreign
currencies.............. -- -- -- --
------------- ------------- ------------- -------------
NET
APPRECIATION/DEPRECIATION... -- -- 120,275 20,698
------------- ------------- ------------- -------------
NET GAIN (LOSS).......... -- -- 141,159 25,184
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)....... $ 421,718 $ 57,568 $ 433,390 $ 91,291
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- ------------------
* Net of $214, $40, $2,918, $310, $581 and $8,092 foreign withholding tax,
respectively.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1998 (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...................... $ 110,855 $ 713 $ 9,439 $ 8,680 $ 11,805 $ 17,773 $ 269,126
Dividends..................... 149,796* 3,744* 1,422,606* 86,439* 190,780* 119,744* 94,051
----------- ---------- ----------- --------- ----------- -------------- ------------
TOTAL INCOME............. 260,651 4,457 1,432,045 95,119 202,585 137,517 363,177
----------- ---------- ----------- --------- ----------- -------------- ------------
EXPENSES
Investment management fee..... 229,993 13,989 418,755 20,047 58,249 88,799 106,545
Transfer agent fees and
expenses.................... 48,915 2,411 57,705 9,175 13,452 24,150 31,512
Shareholder reports and
notices..................... 12,904 878 18,040 1,419 5,764 4,941 6,365
Professional fees............. 7,940 8,372 7,113 8,410 7,932 3,415 7,968
Trustees' fees and expenses... 1,171 32 2,576 43 538 552 653
Registration fees............. 15,902 7,874 6,489 6,757 7,426 10,052 7,209
Custodian fees................ 22,271 7,922 16,419 6,172 9,899 19,725 6,997
Organizational expenses....... 1,368 1,364 1,186 1,190 1,365 1,191 1,189
Other......................... 1,819 903 2,605 671 3,881 6,511 1,969
----------- ---------- ----------- --------- ----------- -------------- ------------
TOTAL EXPENSES........... 342,283 43,745 530,888 53,884 108,506 159,336 170,407
Less: amounts
waived/reimbursed........... (71,703) (27,288) -- (27,155) -- (70,537) (45,059)
----------- ---------- ----------- --------- ----------- -------------- ------------
NET EXPENSES............. 270,580 16,457 530,888 26,729 108,506 88,799 125,348
----------- ---------- ----------- --------- ----------- -------------- ------------
NET INVESTMENT INCOME
(LOSS)................... (9,929) (12,000) 901,157 68,390 94,079 48,718 237,829
----------- ---------- ----------- --------- ----------- -------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss) on:
Investments............... 6,670,506 308,540 7,240,475 294,455 1,275,998 (409,191) 2,217,573
Foreign exchange
transactions............ -- -- -- -- -- (965) --
----------- ---------- ----------- --------- ----------- -------------- ------------
TOTAL GAIN (LOSS)........ 6,670,506 308,540 7,240,475 294,455 1,275,998 (410,156) 2,217,573
----------- ---------- ----------- --------- ----------- -------------- ------------
Net change in unrealized
appreciation on:
Investments............... (3,726,656) (408,959) (7,220,599) 335,810 (1,029,844) (828,921) (2,481,361)
Translation of forward
foreign currency
contracts, other assets
and liabilities
denominated in foreign
currencies.............. -- -- -- -- -- 188 --
----------- ---------- ----------- --------- ----------- -------------- ------------
NET
APPRECIATION/DEPRECIATION... (3,726,656) (408,959) (7,220,599) 335,810 (1,029,844) (828,733) (2,481,361)
----------- ---------- ----------- --------- ----------- -------------- ------------
NET GAIN (LOSS).......... 2,943,850 (100,419) 19,876 630,265 246,154 (1,238,889) (263,788)
----------- ---------- ----------- --------- ----------- -------------- ------------
NET INCREASE (DECREASE)....... $ 2,933,921 $ (112,419) $ 921,033 $ 698,655 $ 340,233 $ (1,190,171) $ (25,959)
----------- ---------- ----------- --------- ----------- -------------- ------------
----------- ---------- ----------- --------- ----------- -------------- ------------
</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 MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1998 ENDED 1998 ENDED
(UNAUDITED) JULY 31, 1997 (UNAUDITED) JULY 31, 1997
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income
(loss)...................... $ 421,718 $ 1,185,191 $ 57,568 $ 320,377
Net realized gain (loss)...... -- -- -- --
Net change in unrealized
appreciation/depreciation... -- -- -- --
------------- ------------- ------------- -------------
NET INCREASE
(DECREASE)............... 421,718 1,185,191 57,568 320,377
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net investment income......... (421,669) (1,185,223) (57,568) (321,625)
Net realized gain............. -- -- -- --
------------- ------------- ------------- -------------
TOTAL.................... (421,669) (1,185,223) (57,568) (321,625)
------------- ------------- ------------- -------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from sales....... 4,996,727 29,266,419 3,589,536 8,809,340
Reinvestment of dividends and
distributions............... 421,669 1,185,223 57,570 321,624
Cost of shares repurchased.... (12,077,145) (51,991,220) (6,346,513) (11,716,197)
------------- ------------- ------------- -------------
NET INCREASE
(DECREASE)............... (6,658,749) (21,539,578) (2,699,407) (2,585,233)
------------- ------------- ------------- -------------
TOTAL INCREASE
(DECREASE)............... (6,658,700) (21,539,610) (2,699,407) (2,586,481)
NET ASSETS:
Beginning of period........... 21,213,028 42,752,638 4,041,296 6,627,777
------------- ------------- ------------- -------------
END OF PERIOD............ $ 14,554,328 $ 21,213,028 $ 1,341,889 $ 4,041,296
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)................. $ 59 $ 10 $ -- $ --
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES ISSUED AND REPURCHASED:
Sold.......................... 4,996,727 29,266,419 3,589,536 8,809,340
Issued in reinvestment of
dividends and
distributions............... 421,669 1,185,223 57,570 321,624
Repurchased................... (12,077,145) (51,991,220) (6,346,513) (11,716,197)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)....... (6,658,749) (21,539,578) (2,699,407) (2,585,233)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER RETIREMENT SERIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE INCOME
SECURITIES
U.S. GOVERNMENT SECURITIES -------------------------- AMERICAN VALUE
--------------------------- -----------------------------
FOR THE SIX
FOR THE SIX MONTHS FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED FOR THE YEAR MONTHS ENDED
JANUARY 31, ENDED JANUARY 31, ENDED JANUARY 31, FOR THE YEAR
1998 JULY 31, 1998 JULY 31, 1998 ENDED
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) JULY 31, 1997
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income
(loss)...................... $ 292,231 $ 602,606 $ 66,107 $ 207,340 $ (9,929) $ 46,600
Net realized gain (loss)...... 20,884 5,297 4,486 (62,395) 6,670,506 7,151,437
Net change in unrealized
appreciation/depreciation... 120,275 365,249 20,698 151,066 (3,726,656) 9,007,653
------------ ------------ ----------- ------------ ------------- -------------
NET INCREASE
(DECREASE)............... 433,390 973,152 91,291 296,011 2,933,921 16,205,690
------------ ------------ ----------- ------------ ------------- -------------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net investment income......... (290,708) (602,630) (66,153) (207,294) (46,601) (93,984)
Net realized gain............. -- (22,190) -- -- (10,423,930) (3,137,376)
------------ ------------ ----------- ------------ ------------- -------------
TOTAL.................... (290,708) (624,820) (66,153) (207,294) (10,470,531) (3,231,360)
------------ ------------ ----------- ------------ ------------- -------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from sales....... 1,813,180 5,963,450 283,057 3,241,075 7,940,634 20,568,978
Reinvestment of dividends and
distributions............... 285,087 567,526 65,091 165,904 10,456,727 3,227,638
Cost of shares repurchased.... (3,608,813) (5,033,814) (569,427) (5,211,640) (13,419,711) (22,877,816)
------------ ------------ ----------- ------------ ------------- -------------
NET INCREASE
(DECREASE)............... (1,510,546) 1,497,162 (221,279) (1,804,661) 4,977,650 918,800
------------ ------------ ----------- ------------ ------------- -------------
TOTAL INCREASE
(DECREASE)............... (1,367,864) 1,845,494 (196,141) (1,715,944) (2,558,960) 13,893,130
NET ASSETS:
Beginning of period........... 10,496,307 8,650,813 2,455,772 4,171,716 54,214,494 40,321,364
------------ ------------ ----------- ------------ ------------- -------------
END OF PERIOD............ $ 9,128,443 $ 10,496,307 $2,259,631 $ 2,455,772 $ 51,655,534 $ 54,214,494
------------ ------------ ----------- ------------ ------------- -------------
------------ ------------ ----------- ------------ ------------- -------------
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)................. $ 1,523 $ -- $ -- $ 46 $ (9,930) $ 46,600
------------ ------------ ----------- ------------ ------------- -------------
------------ ------------ ----------- ------------ ------------- -------------
SHARES ISSUED AND REPURCHASED:
Sold.......................... 182,904 616,600 29,319 340,574 475,241 1,422,680
Issued in reinvestment of
dividends and
distributions............... 28,729 58,481 6,741 17,479 759,385 237,676
Repurchased................... (363,557) (517,322) (58,881) (547,645) (812,452) (1,545,904)
------------ ------------ ----------- ------------ ------------- -------------
NET INCREASE (DECREASE)....... (151,924) 157,759 (22,821) (189,592) 422,174 114,452
------------ ------------ ----------- ------------ ------------- -------------
------------ ------------ ----------- ------------ ------------- -------------
<CAPTION>
CAPITAL GROWTH
-------------------------
FOR THE SIX
MONTHS FOR THE
ENDED YEAR
JANUARY 31, ENDED
1998 JULY 31,
(UNAUDITED) 1997
<S> <C> <C>
- ------------------------------
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income
(loss)...................... $ (12,000) $ (5,965)
Net realized gain (loss)...... 308,540 294,325
Net change in unrealized
appreciation/depreciation... (408,959) 762,068
----------- -----------
NET INCREASE
(DECREASE)............... (112,419) 1,050,428
----------- -----------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net investment income......... -- (2,106)
Net realized gain............. (499,326) (56,080)
----------- -----------
TOTAL.................... (499,326) (58,186)
----------- -----------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from sales....... 490,054 1,297,311
Reinvestment of dividends and
distributions............... 498,585 58,150
Cost of shares repurchased.... (901,041) (665,910)
----------- -----------
NET INCREASE
(DECREASE)............... 87,598 689,551
----------- -----------
TOTAL INCREASE
(DECREASE)............... (524,147) 1,681,793
NET ASSETS:
Beginning of period........... 3,669,646 1,987,853
----------- -----------
END OF PERIOD............ $3,145,499 $3,669,646
----------- -----------
----------- -----------
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)................. $ (12,000) $ --
----------- -----------
----------- -----------
SHARES ISSUED AND REPURCHASED:
Sold.......................... 30,557 91,240
Issued in reinvestment of
dividends and
distributions............... 37,042 4,317
Repurchased................... (54,209) (45,416)
----------- -----------
NET INCREASE (DECREASE)....... 13,390 50,141
----------- -----------
----------- -----------
</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 MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1998 ENDED 1998 ENDED
(UNAUDITED) JULY 31, 1997 (UNAUDITED) JULY 31, 1997
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income......... $ 901,157 $ 1,722,758 $ 68,390 $ 181,177
Net realized gain (loss)...... 7,240,475 8,642,932 294,455 608,162
Net change in unrealized
appreciation/depreciation... (7,220,599) 21,493,364 335,810 426,820
-------------- ----------------- -------------- --------------
NET INCREASE
(DECREASE)............... 921,033 31,859,054 698,655 1,216,159
-------------- ----------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net investment income......... (1,056,382) (1,707,024) (99,698) (160,780)
Net realized gain............. (11,483,411) (2,463,125) (626,928) --
-------------- ----------------- -------------- --------------
TOTAL.................... (12,539,793) (4,170,149) (726,626) (160,780)
-------------- ----------------- -------------- --------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from sales....... 11,895,670 37,149,898 766,131 2,818,978
Reinvestment of dividends and
distributions............... 12,516,642 4,150,502 725,733 158,903
Cost of shares repurchased.... (21,663,731) (23,440,408) (1,129,385) (6,235,329)
-------------- ----------------- -------------- --------------
NET INCREASE
(DECREASE)............... 2,748,581 17,859,992 362,479 (3,257,448)
-------------- ----------------- -------------- --------------
TOTAL INCREASE
(DECREASE)............... (8,870,179) 45,548,897 334,508 (2,202,069)
NET ASSETS:
Beginning of period........... 115,311,509 69,762,612 5,391,228 7,593,297
-------------- ----------------- -------------- --------------
END OF PERIOD............ $ 106,441,330 $ 115,311,509 $ 5,725,736 $ 5,391,228
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)................. $ 210,699 $ 365,924 $ 22,892 $ 54,200
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
SHARES ISSUED AND REPURCHASED:
Sold.......................... 626,873 2,205,684 53,835 222,951
Issued in reinvestment of
dividends and
distributions............... 731,871 255,693 52,861 12,596
Repurchased................... (1,146,677) (1,379,982) (81,367) (488,313)
-------------- ----------------- -------------- --------------
NET INCREASE (DECREASE)....... 212,067 1,081,395 25,329 (252,766)
-------------- ----------------- -------------- --------------
-------------- ----------------- -------------- --------------
</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
JANUARY 31, ENDED JANUARY 31, ENDED JANUARY 31, ENDED
1998 JULY 31, 1998 JULY 31, 1998 JULY 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income......... $ 94,079 $ 208,257 $ 48,718 $ 128,358 $ 237,829 $ 615,034
Net realized gain (loss)...... 1,275,998 896,043 (410,156) 811,865 2,217,573 247,627
Net change in unrealized
appreciation/depreciation... (1,029,844) 6,185,067 (828,733) 2,898,751 (2,481,361) 4,379,845
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE
(DECREASE)............... 340,233 7,289,367 (1,190,171) 3,838,974 (25,959) 5,242,506
------------ ------------ ------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net investment income......... (190,320) (279,999) (209,613) (70,000) (579,076) (408,002)
Net realized gain............. (940,949) (698,399) (786,673) (367,529) (2,892,000) (699,994)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL.................... (1,131,269) (978,398) (996,286) (437,529) (3,471,076) (1,107,996)
------------ ------------ ------------ ------------ ------------ ------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from sales....... 2,714,845 6,558,038 2,499,146 7,696,263 3,032,517 7,519,070
Reinvestment of dividends and
distributions............... 1,094,116 948,925 989,770 435,668 3,467,463 1,107,086
Cost of shares repurchased.... (4,969,740) (10,417,432) (4,559,911) (3,421,423) (7,069,581) (3,796,952)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE
(DECREASE)............... (1,160,779) (2,910,469) (1,070,995) 4,710,508 (569,601) 4,829,204
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE
(DECREASE)............... (1,951,815) 3,400,500 (3,257,452) 8,111,953 (4,066,636) 8,963,714
NET ASSETS:
Beginning of period........... 23,779,735 20,379,235 19,797,196 11,685,243 26,459,420 17,495,706
------------ ------------ ------------ ------------ ------------ ------------
END OF PERIOD............ $21,827,920 $ 23,779,735 $16,539,744 $ 19,797,196 $22,392,784 $ 26,459,420
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)................. $ 4,120 $ 100,361 $ (29,347) $ 131,548 $ 40,488 $ 381,735
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
SHARES ISSUED AND REPURCHASED:
Sold.......................... 145,290 416,960 186,903 606,253 207,847 549,814
Issued in reinvestment of
dividends and
distributions............... 62,095 62,594 80,798 35,887 282,597 83,616
Repurchased................... (268,571) (680,374) (340,834) (265,700) (489,475) (277,595)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)....... (61,186) (200,820) (73,133) 376,440 969 355,835
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (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, 1998 (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, 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 (valuation of securities for which
market quotations are not readily available may also be based upon current
market prices of securities which are comparable in coupon, rating and maturity,
or an appropriate matrix utilizing similar factors); (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
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
market price quotations, if available, in determining what it believes is the
fair valuation of the securities valued by such pricing service; and (5)
short-term debt securities having a maturity date of more than sixty days at
time of purchase are valued on a mark-to-market basis until sixty days prior to
maturity and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and distributions are recorded on the ex-dividend date except
for certain dividends on foreign securities which are recorded as soon as the
Fund is informed after the ex-dividend date. Interest income is accrued daily.
Liquid Asset and U.S. Government Money Market amortize premiums and accrete
discounts on securities owned; gains and losses realized upon the sale of such
securities are based on their amortized cost. Discounts for all other Series are
accreted over the life of the respective securities.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of 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.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
E. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply individually
for each Series with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable income to
its shareholders. Accordingly, no federal income tax provision is required.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
G. EXPENSES -- Direct expenses are charged to the respective Series and general
Fund expenses are allocated on the basis of relative net assets or equally among
the Series.
H. ORGANIZATIONAL EXPENSES -- 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 were
deferred and fully amortized by the Fund as of January 31, 1998.
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
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
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.
For the period August 1, 1997 through January 31, 1998, the Investment Manager
has continued to waive its management fee and reimburse expenses to the extent
they exceeded 1.00% of daily net assets of each Series. The waiver and
reimbursement of expenses will continue until June 30, 1998. At January 31,
1998, 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/prepayments of portfolio securities, excluding
short-term investments (except for Liquid Asset and U.S. Government Money
Market), for the six months ended January 31, 1998 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES OTHER
-------------------------- ------------------------
SALES/MATURITIES/ SALES/
PURCHASES PREPAYMENTS PURCHASES MATURITIES
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Liquid Asset................................. $465,238,660 $458,417,760 $40,745,922 $53,567,782
U.S. Government Money Market................. 135,205,272 137,983,856 -- --
U.S. Government Securities................... 2,685,761 4,370,987 -- --
Intermediate Income Securities............... 102,766 401,500 412,593 247,738
American Value............................... 5,697,516 2,979,522 63,095,393 71,417,357
Capital Growth............................... -- -- 3,007,969 3,284,177
Dividend Growth.............................. -- -- 13,779,275 20,449,245
Utilities.................................... -- -- 1,133,934 1,575,346
Value-Added Market........................... -- 14,947 1,464,974 3,171,601
Global Equity................................ 8,407 -- 6,994,819 8,140,516
Strategist................................... 632,891 889,618 12,838,780 12,657,535
</TABLE>
Included in the aforementioned sales/maturities of portfolio securities of
Value-Added Market are common stock sales of Morgan Stanley, Dean Witter,
Discover & Co., an affiliate of the Investment Manager, of $14,436, including
realized gains of $8,276.
Included at January 31, 1998 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>
AMERICAN DIVIDEND
VALUE GROWTH
-------- ----------
<S> <C> <C>
Payable for investments purchased................. -- $ 99,113
-------- ----------
-------- ----------
Receivable for investments sold................... $394,607 $1,094,766
-------- ----------
-------- ----------
</TABLE>
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
For the six months ended January 31, 1998, 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>
$ 18,575 $1,326 $25,890 $ 3,453 $ 5,113 $ 18,419
--------- --------- --------- --------- --------- -----------
--------- --------- --------- --------- --------- -----------
</TABLE>
Included at January 31, 1998 in the payable for investments purchased and
receivable for investments sold were unsettled trades with Morgan Stanley & Co.,
Inc., an affiliate of the Investment Manager, as follows:
<TABLE>
<CAPTION>
AMERICAN CAPITAL
VALUE GROWTH
-------- --------
<S> <C> <C>
Payable for investments purchased................. $447,382 $ 16,640
-------- --------
-------- --------
Receivable for investments sold................... $332,289 $ 25,517
-------- --------
-------- --------
</TABLE>
For the six months ended January 31, 1998, the following Series incurred
brokerage commissions with Morgan Stanley & Co., Inc. for portfolio transactions
executed on behalf of such Series, as follows:
<TABLE>
<CAPTION>
AMERICAN VALUE CAPITAL GROWTH DIVIDEND GROWTH
-------------------- ----------- --------------------
<S> <C> <C>
$ 7,255 $ 404 $ 645
------ ----- -----
------ ----- -----
</TABLE>
Dean Witter Trust FSB, an affiliate of the Investment Manager, is the Fund's
transfer agent. At January 31, 1998 the following Series had approximate
transfer agent fees and expenses payable as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
LIQUID U.S. GOVERNMENT U.S. GOVERNMENT INCOME AMERICAN
ASSET MONEY MARKET SECURITIES SECURITIES VALUE
--------- --------------- --------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
$ 5,700 $ 600 $ 1,040 $ 2,000 $ 2,000
--------- ------ ------ ------ -----------
--------- ------ ------ ------ -----------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL DIVIDEND GLOBAL
GROWTH GROWTH UTILITIES EQUITY STRATEGIST
--------- --------------- --------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
$ 100 $ 1,500 $ 730 $ 650 $ 2,000
--------- ------ ------ ------ -----------
--------- ------ ------ ------ -----------
</TABLE>
4. FEDERAL INCOME TAX STATUS
At July 31, 1997, Intermediate Income Securities had a net capital loss
carryover of approximately $30,200 for which $5,700 will be available through
July 31, 2004 and $24,500 will be available through July 31, 2005 to offset
future capital gains to the extent provided by regulations.
<PAGE>
DEAN WITTER RETIREMENT SERIES
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998 (UNAUDITED) CONTINUED
Net capital and 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 1997:
<TABLE>
<CAPTION>
U.S. GOVERNMENT INTERMEDIATE
SECURITIES INCOME SECURITIES GLOBAL EQUITY
-------------------- -------------------- --------------------
<S> <C> <C>
$ 500 $ 57,800 $ 900
----- ------- -----
----- ------- -----
</TABLE>
At July 31, 1997, the primary reason(s) for temporary book/tax differences were
as follows:
<TABLE>
<CAPTION>
TEMPORARY DIFFERENCES
--------------------------------------
POST-OCTOBER CAPITAL LOSS DEFERRALS
LOSSES FROM WASH SALES
-------------- ----------------------
<S> <C> <C>
U.S. Government Securities........................ -
Intermediate Income Securities.................... - -
American Value.................................... -
Capital Growth.................................... -
Dividend Growth................................... -
Value-Added Market................................ -
Global Equity..................................... - -
Strategist........................................ -
</TABLE>
Additionally, Global Equity had temporary differences attributable to income
from the mark-to-market of passive foreign investment companies.
5. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
Some of the Portfolios may enter into forward foreign currency contracts
("forward contracts") to facilitate settlement of foreign currency denominated
portfolio transactions or to manage foreign currency exposure associated with
foreign currency denominated securities.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Portfolios bear the
risk of an unfavorable change in foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
At January 31, 1998, 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
VALUE INVESTMENT NET REALIZED TOTAL FROM DIVIDENDS DISTRIBUTIONS TOTAL DIVIDENDS
BEGINNING INCOME AND UNREALIZED INVESTMENT TO TO AND
YEAR ENDED 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 0.05 -- 0.05 (0.05) -- (0.05)
1998* 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 0.04 -- 0.04 (0.04) -- (0.04)
1998* 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 0.56 0.34 0.90 (0.56) $(0.02) (0.58)
1998* 9.91 0.29 0.15 0.44 (0.29) -- (0.29)
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 0.53 0.26 0.79 (0.53) -- (0.53)
1998* 9.67 0.26 0.11 0.37 (0.26) -- (0.26)
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 5.12 5.14 (0.04) (1.22) (1.26)
1998* 16.96 0.00 0.81 0.81 (0.02) (3.48) (3.50)
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1998 (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.
(a) Not annualized.
(b) Annualized.
Commencement of operations:
(1) December 30, 1992.
(2) January 20, 1993.
(3) January 8, 1993.
(4) January 12, 1993.
(5) February 1, 1993.
</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 AVERAGE
VALUE END INVESTMENT PERIOD INCOME INCOME TURNOVER COMMISSION
OF PERIOD RETURN+ (000'S) EXPENSES (LOSS) EXPENSES (LOSS) RATE RATE PAID
---------------------------------------------------------------------------------------------------------------
<S> <C> <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 N/A
1994 1.00 3.48 1,524 2.50** 0.99 -- 3.49 N/A N/A
1995 1.00 5.90 35,631 1.16 4.96 -- 6.12 N/A N/A
1996 1.00 5.44 42,753 0.65 5.05 0.33 5.37 N/A N/A
1997 1.00 4.57 21,213 1.04 4.43 1.00 4.47 N/A N/A
1998* 1.00 2.35(a) 14,554 1.30(b) 4.31(b) 1.00(b) 4.61(b) N/A 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 N/A
1994 1.00 3.52 555 2.50** 0.82 -- 3.32 N/A N/A
1995 1.00 5.86 10,695 2.50** 3.62 -- 6.12 N/A N/A
1996 1.00 5.23 6,628 0.82 4.75 0.37 5.21 N/A N/A
1997 1.00 4.51 4,041 1.20 4.17 1.00 4.37 N/A N/A
1998* 1.00 2.31(a) 1,342 2.60(b) 2.93(b) 1.00(b) 4.53(b) N/A 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) -- N/A
1994 9.56 (0.69) 2,954 2.50** 1.96 -- 4.46 29% N/A
1995 9.71 7.72 4,209 2.36 3.49 -- 5.85 14 N/A
1996 9.59 4.49 8,651 1.48 4.70 0.63 5.55 47 N/A
1997 9.91 9.70 10,496 1.55 5.24 1.00 5.79 89 N/A
1998* 10.06 4.53(a) 9,128 1.68(b) 5.16(b) 1.00(b) 5.84(b) 28(a) N/A
INTERMEDIATE
INCOME SECURITIES
1993(4) 9.98 1.67(a) 182 2.50**(b) 1.00(b) 1.62(b) 3.50(b) -- N/A
1994 9.41 0.26 460 2.50** 3.64 -- 6.14 40 N/A
1995 9.63 9.22 994 2.50** 4.08 -- 6.58 37 N/A
1996 9.41 3.95 4,172 1.58 5.01 0.72 5.87 142 N/A
1997 9.67 8.63 2,456 2.00 4.50 1.00 5.50 132 N/A
1998* 9.78 3.92(a) 2,260 3.20(b) 3.27(b) 1.00(b) 5.47(b) 24(a) N/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 $0.0543
1997 16.96 41.62 54,214 1.21 (0.11) 1.00 0.10 261 0.0552
1998* 14.27 5.52(a) 51,656 1.26(b) (0.30)(b) 1.00(b) (0.04)(b) 134(a) 0.0580
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1998 (unaudited).
** After application of the Fund's expense limitation.
+ Calculated based on the net asset value as of the last business
++ Includes dividends from net investment income of $0.004 per
(a) Not annualized.
(b) Annualized.
(1) December 30, 1992.
(2) January 20, 1993.
(3) January 8, 1993.
(4) January 12, 1993.
(5) February 1, 1993.
</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 NET
VALUE INVESTMENT NET REALIZED TOTAL FROM DIVIDENDS DISTRIBUTIONS TOTAL DIVIDENDS
BEGINNING INCOME AND UNREALIZED INVESTMENT TO TO AND
YEAR ENDED JULY 31 OF PERIOD (LOSS) GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
1993(4) $ 10.00 $(0.02) $(1.10) $(1.12) -- -- --
1994 8.88 0.13 0.45 0.58 $(0.04) -- $(0.04)
1995 9.42 0.10 1.77 1.87 (0.12) -- (0.12)
1996 11.17 0.07 1.55 1.62 (0.11) $(0.07) (0.18)
1997 12.61 (0.03) 5.41 5.38 (0.01) (0.32) (0.33)
1998* 17.66 (0.05) (0.70) (0.75) -- (2.69) (2.69)
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 0.33 5.60 5.93 (0.33) (0.52) (0.85)
1998* 19.69 0.16 (0.05) 0.11 (0.19) (2.07) (2.26)
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 0.41 1.90 2.31 (0.32) -- (0.32)
1998* 13.78 0.19 1.73 1.92 (0.27) (1.68) (1.95)
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 0.21 5.58 5.79 (0.25) (0.63) (0.88)
1998* 18.84 0.08 0.18 0.26 (0.16) (0.77) (0.93)
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 0.09 2.98 3.07 (0.06) (0.32) (0.38)
1998* 14.48 0.05 (0.96) (0.91) (0.17) (0.62) (0.79)
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 0.37 2.96 3.33 (0.28) (0.48) (0.76)
1998* 15.17 0.18 (0.24) (0.06) (0.38) (1.90) (2.28)
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1998 (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.
(a) Not annualized.
(b) Annualized.
Commencement of operations:
(1) January 7, 1993.
(2) January 8, 1993.
(3) February 1, 1993.
(4) February 2, 1993.
</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 AVERAGE
VALUE END INVESTMENT PERIOD INCOME INCOME TURNOVER COMMISSION
OF PERIOD RETURN+ (000'S) EXPENSES (LOSS) EXPENSES (LOSS) RATE RATE PAID
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
1993(4) $ 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 $0.0536
1997 17.66 43.46 3,670 3.16 (2.38) 1.00 (0.22) 147 0.0575
1998* 14.22 (3.37)(a) 3,145 2.66(b) (2.39)(b) 1.00(b) (0.73) (b) 92(a) 0.0558
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 0.0526
1997 19.69 41.92 115,312 0.97 1.92 0.97 1.92 31 0.0537
1998* 17.54 0.88(a) 106,441 0.95(b) 1.61(b) 0.95(b) 1.61(b) 12(a) 0.0518
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 0.0508
1997 13.78 19.87 5,391 1.78 1.85 1.00 2.63 89 0.0508
1998* 13.75 14.05(a) 5,726 2.02(b) 1.54(b) 1.00(b) 2.56(b) 22(a) 0.0507
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 0.0300
1997 18.84 43.12 23,780 1.02 1.04 1.00 1.07 23 0.0300
1998* 18.17 1.52(a) 21,828 0.93(b) 0.81(b) 0.93(b) 0.81(b) 7(a) 0.0300
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 0.0500
1997 14.48 26.66 19,797 1.85 (0.01) 1.00 0.84 80 0.0348
1998* 12.78 (6.07)(a) 16,540 1.79(b) (0.24)(b) 1.00(b) 0.55(b) 41(a) 0.0345
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 0.0525
1997 15.17 27.35 26,459 1.40 2.50 1.00 2.90 90 0.0535
1998* 12.83 0.28(a) 22,393 1.36(b) 1.54(b) 1.00(b) 1.90(b) 67(a) 0.0512
</TABLE>
<TABLE>
<C> <S>
- ---------------------
* For the six months ended January 31, 1998 (unaudited).
** After application of the Fund's expense limitation.
+ Calculated based on the net asset value as of the last business
(a) Not annualized.
(b) Annualized.
(1) January 7, 1993.
(2) January 8, 1993.
(3) February 1, 1993.
(4) February 2, 1993.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TRUSTEES SEMIANNUAL REPORT
Michael Bozic JANUARY 31, 1998
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien DEAN WITTER
Dr. Manuel H. Johnson
Michael E. Nugent RETIREMENT SERIES
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 FSB
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.
