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Schedule 14A Information required in proxy statement.
Schedule 14A Information
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [ X ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Preliminary Additional Materials
[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2))
[ X ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.149-11(c) or
Section 240.14a-12
.... InterCapital New York Quality Municipal Securities. . . . . .
(Name of Registrant(s) Specified in its Charter)
.... Lou Anne McInnis. . . . . . . . . . . . . . . . . . . . . . .
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (check the appropriate box):
[ x ] No fee required.
[ ] Fee computed on table below per Exchange Act Rules
14a-6(j)(4) and 0-11.
1) Title of each class of securities to which transaction
applies:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2) Aggregate number of securities to which transaction applies:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Set forth the amount on which the filing fee is calculated and state
how it was determined.
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4) Proposed maximum aggregate value of transaction:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5) Fee previously paid:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or
Schedule and the date of its filing.
1) Amount Previously Paid:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2) Form, Schedule or Registration Statement No.:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3) Filing Party:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4) Date Filed:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD MAY 20, 1997
The Annual Meeting of Shareholders (the "Meeting") of INTERCAPITAL NEW YORK
QUALITY MUNICIPAL SECURITIES (the "Trust"), an unincorporated business trust
organized under the laws of the Commonwealth of Massachusetts, will be held at
the Career Development Room, Sixty-First Floor, 2 World Trade Center, New
York, New York 10048, on May 20, 1997, at 10:00 a.m., New York City time, for
the following purposes:
MATTERS TO BE VOTED ON BY ALL SHAREHOLDERS:
1. To elect four (4) Trustees, three (3) to serve until the 2000 Annual
Meeting and one (1) to serve until the 1999 Annual Meeting, or, in each
case, until their successors shall have been elected and qualified;
2. To approve or disapprove a new Investment Management Agreement between
the Trust and Dean Witter InterCapital Inc. a wholly-owned subsidiary of
Dean Witter, Discover & Co. ("DWDC") in connection with the proposed
merger of Morgan Stanley Group Inc. with DWDC;
3. To ratify or reject the selection of Price Waterhouse LLP as the
Trust's independent accountants for the fiscal year ending October 31,
1997;
4. To transact such other business as may properly come before the
Meeting or any adjournments thereof.
MATTERS TO BE VOTED ON ONLY BY PREFERRED SHAREHOLDERS:
To elect one (1) Trustee to serve until the 2000 Annual Meeting or until
his successor shall have been elected and qualified.
Shareholders of record as of the close of business on March 12, 1997 are
entitled to notice of and to vote at the Meeting. If you cannot be present in
person, your management would greatly appreciate your filling in, signing and
returning the enclosed proxy promptly in the envelope provided for that
purpose.
In the event that the necessary quorum to transact business or the vote
required to approve or reject any proposal is not obtained at the Meeting, the
persons named as proxies may propose one or more adjournments of the Meeting
for a total of not more than 60 days in the aggregate to permit further
solicitation of proxies. Any such adjournment will require the affirmative
vote of the holders of a majority of the Trust's shares present in person or
by proxy at the Meeting. The persons named as proxies will vote in favor of
such adjournment those proxies which they are entitled to vote in favor of
Proposal 2 and will vote against any such adjournment those proxies required
to be voted against that proposal.
BARRY FINK
Secretary
March 19, 1997
New York, New York
IMPORTANT
YOU CAN HELP THE TRUST AVOID THE NECESSITY AND EXPENSE OF SENDING FOLLOW-UP
LETTERS TO ENSURE A QUORUM BY PROMPTLY RETURNING THE ENCLOSED PROXY. IF YOU
ARE UNABLE TO BE PRESENT IN PERSON, PLEASE FILL IN, SIGN AND RETURN THE
ENCLOSED PROXY IN ORDER THAT THE NECESSARY QUORUM MAY BE REPRESENTED AT THE
MEETING. THE ENCLOSED ENVELOPE REQUIRES NO POSTAGE IF MAILED IN THE UNITED
STATES.
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INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
TWO WORLD TRADE CENTER, NEW YORK, NEW YORK 10048
PROXY STATEMENT
ANNUAL MEETING OF SHAREHOLDERS
MAY 20, 1997
This statement is furnished in connection with the solicitation of proxies
by the Board of Trustees (the "Board" or "Trustees") of INTERCAPITAL NEW YORK
QUALITY MUNICIPAL SECURITIES (the "Trust"), for use at the Annual Meeting of
Shareholders of the Trust to be held on May 20, 1997 (the "Meeting"), and at
any adjournments thereof.
If the enclosed form of proxy is properly executed and returned in time to
be voted at the Meeting, the proxies named therein will vote the shares
represented by the proxy in accordance with the instructions marked thereon.
Unmarked proxies will be voted for each of the nominees for election as
Trustee to be elected by all Shareholders and for the nominee for election as
Trustee to be elected by only the Preferred Shareholders and in favor of
Proposals 2 and 3 set forth in the attached Notice of Annual Meeting of
Shareholders. A proxy may be revoked at any time prior to its exercise by any
of the following: written notice of revocation to the Secretary of the Trust,
execution and delivery of a later dated proxy to the Secretary of the Trust
(if returned and received in time to be voted), or attendance and voting at
the Meeting. Attendance at the Meeting will not in and of itself revoke a
proxy.
Holders of shares of the Trust ("Shareholders") of record as of the close
of business on March 12, 1997, the record date for the determination of
Shareholders entitled to notice of and to vote at the Meeting, are entitled to
one vote for each share held and a fractional vote for a fractional share. On
March 12, 1997, there were 5,215,013 Common Shares of beneficial interest
outstanding and 480 Preferred Shares of beneficial interest outstanding, all
with $.01 par value. No person was known to own as much as 5% of the
outstanding shares of the Trust on that date. The percentage ownership of
shares of the Trust changes from time to time depending on purchases and sales
by Shareholders and the total number of shares outstanding. The first mailing
of this Proxy Statement is expected to be made on or about March 19, 1997.
The cost of soliciting proxies for the Meeting, consisting principally of
mailing and printing expenses, is expected to be approximately $23,000, of
which approximately $10,600 will be borne by the Trust, the remainder of which
will be borne by Dean Witter, Discover & Co. ("DWDC"). The solicitation of
proxies will be by mail, which may be supplemented by solicitation by mail,
telephone or otherwise through Trustees, officers of the Trust or officers and
regular employees of Dean Witter InterCapital Inc. ("InterCapital" or the
"Investment Manager"), Dean Witter Trust Company ("DWTC"), Dean Witter
Services Company Inc. ("DWSC") and/or employees of broker-dealers, including
Dean Witter Reynolds Inc. ("DWR") without special compensation therefor. In
addition, the Trust may employ William F. Doring and Co. as proxy solicitor,
the cost of which is not expected to exceed $5,000 and will be borne by DWDC.
William F. Doring & Co. and DWTC may call Shareholders to ask if they would
be willing to have their votes recorded by telephone. The telephone voting
procedure is designed to authenticate Shareholders' identities, to allow
Shareholders to authorize the voting of their shares in accordance with their
instructions and to confirm that their instructions have been recorded
properly. No recommendation will be made as to how a Shareholder should vote
on any Proposal other than to refer to recommendation of the Board. The Trust
has been advised by counsel that these procedures are consistent with the
requirements of applicable law. Shareholders voting by telephone will be asked
for their social security number or other identifying information and will be
given an opportunity to authorize proxies to vote their shares in accordance
with their instructions.
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To ensure that the Shareholders' instructions have been recorded correctly
they will receive a confirmation of their instructions in the mail. A special
toll-free number will be available in case the information contained in the
confirmation is incorrect. Although a Shareholder's vote may be taken by
telephone, each Shareholder will receive a copy of this Proxy Statement and
may vote by mail using the enclosed proxy card. With respect to the
solicitation of a telephonic vote by William F. Doring & Co., additional
expenses would include $7.00 per telephone vote transacted, $3.00 per outbound
telephone contact and costs relating to obtaining Shareholders' telephone
numbers which would be borne by DWDC.
(1) ELECTION OF TRUSTEES
The number of Trustees has been fixed by the Trustees, pursuant to the
Trust's Declaration of Trust, as amended, at nine. At the Meeting, pursuant to
the Trust's Declaration of Trust, five nominees are to be elected to the
Trust's Board of Trustees. There are currently eight Trustees, four of whom
(Edwin J. Garn, John R. Haire, Michael E. Nugent and Philip J. Purcell) are
standing for election at this Meeting to serve until the 2000 Annual Meeting.
Additionally, one nominee to the Trust's Board of Trustees, Wayne E. Hedien,
is standing for election at the Meeting for the first time, and, if elected,
to serve until the 1999 Annual Meeting in accordance with the Trust's
Declaration of Trust. At the Meeting, pursuant to the Trust's Declaration of
Trust, four Trustees are to be elected to the Trust's Board of Trustees by the
holders of the Common Shares and Preferred Shares voting together as a single
class. Additionally, pursuant to the Declaration of Trust and the Investment
Company Act of 1940, as amended ("the 1940 Act"), one Trustee is to be elected
to the Trust's Board of Trustees at the Meeting by the holders of the
Preferred Shares voting separately as a single class.
Six of the current eight Trustees (Michael Bozic, Edwin J. Garn, John R.
Haire, Manuel H. Johnson, Michael E. Nugent, and John L. Schroeder) are
"Independent Trustees", that is, Trustees who are not "interested persons" of
the Trust, as that term is defined in the 1940 Act. Mr. Hedien, who has been
nominated for election at the Meeting, if elected, also will be an Independent
Trustee. The other two current Trustees, Charles A. Fiumefreddo and Philip J.
Purcell are "interested persons" (as that term is defined in the 1940 Act) of
the Trust and InterCapital and thus are not Independent Trustees. The nominees
for election as Independent Trustees have been proposed by the Trustees now
serving or, in the case of the nominees for positions as Independent Trustees,
by the Independent Trustees now serving. All of the Trustees currently serving
have been elected previously by the Shareholders of the Trust.
The nominees of the Board of Trustees for election as Trustees are listed
below. It is the intention of the persons named in the enclosed form of proxy
to vote the shares represented by them for the election of these nominees:
Edwin J. Garn, John R. Haire, Wayne E. Hedien, Michael E. Nugent and Philip J.
Purcell. Should any of the nominees become unable or unwilling to accept
nomination or election, the persons named in the proxy will exercise their
voting power in favor of such person or persons as the Board of Trustees of
the Trust may recommend. All of the nominees have consented to being named in
this Proxy Statement and to serve if elected (if elected, Mr. Hedien's term
will commence September 1, 1997). The Trust knows no reason why any of said
nominees would be unable or unwilling to accept nomination or election. The
election of each Trustee not designated to be elected by only the Preferred
Shareholders requires the approval of a majority of shares of the Trust
(Common Shares and Preferred Shares voting together) represented and entitled
to vote at the Meeting. The election of the Trustee to be elected by only the
Preferred Shareholders requires the approval of a majority of the Preferred
Shares of the Trust represented and entitled to vote at the Meeting.
Pursuant to the provisions of the Declaration of Trust, the Trustees are
divided into three separate classes, each class having a term of three years.
The term of office of one of each of the three classes will expire each year.
The Board previously determined that any nominee for election as Trustee
shall stand for election as Trustee and serve as Trustee in one of the three
classes of Trustees as follows: Class I -- Messrs. Bozic and
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Fiumefreddo; Class II -- Messrs. Hedien, Johnson and Schroeder; and Class III
- -- Messrs. Garn, Haire, Nugent and Purcell. Each nominee for Trustee at the
Annual Meeting will, if elected, serve a term of up to approximately three
years running for the period assigned to that class and terminating at the
date of the Annual Meeting of Shareholders so designated by the Board, or any
adjournment thereof. In addition, the Board further determined that one of the
Class I Trustees and one of the Class III Trustees will be designated to be
elected by the Preferred Shareholders voting separately. In this regard,
Charles A. Fiumefreddo and John R. Haire serve as Trustees on behalf of the
Preferred Shareholders, the terms of each to expire with his designated Class.
Mr. John R. Haire, one of the Class III Trustees, is standing for election at
the Meeting to be elected by the Preferred Shareholders. In accordance with
the above, the Trustees in Class III are standing for election at the Meeting
and, if elected, will serve until the 2000 Annual Meeting or until their
successors shall have been elected and qualified. Additionally, the new
nominee is standing for election as Trustee in Class II, and, if elected at
the Meeting, will serve until the 1999 Annual Meeting, or until this successor
shall have been elected and qualified. As a consequence of this method of
election, the replacement of a majority of the Board could be delayed for up
to two years.
The following information regarding each of the nominees for election as
Trustee and each of the members of the Board includes his principal
occupations and employment for at least the last five years, his age, shares
of the Trust owned, if any, as of March 12, 1997 (shown in parentheses),
positions with the Trust, and directorships or trusteeships in other companies
which file periodic reports with the Securities and Exchange Commission,
including the 84 investment companies, including the Trust, for which
InterCapital serves as investment manager or investment adviser (referred to
herein as the "Dean Witter Funds") and the 14 investment companies for which
InterCapital's wholly-owned subsidiary, DWSC, serves as manager and TCW Funds
Management, Inc. serves as investment adviser (referred to herein as the
"TCW/DW Funds").
The nominees for Trustee to be elected at the Meeting by all Shareholders
are:
EDWIN JACOB (JAKE) GARN, Trustee since April, 1993; age 64; Director or
Trustee of the Dean Witter Funds; formerly United States Senator (R-Utah)
(1974-1992) and Chairman, Senate Banking Committee (1980-1986); formerly Mayor
of Salt Lake City, Utah (1971-1974); formerly Astronaut, Space Shuttle
Discovery (April 12-19, 1985); Vice Chairman, Huntsman Corporation (since
January, 1993); Director of Franklin Quest (time management systems) and John
Alden Financial Corp. (health insurance); Member of the board of various civic
and charitable organizations.
WAYNE E. HEDIEN, age 63; Retired; Director of The PMI Group, Inc. (private
mortgage insurance); Trustee and Vice Chairman of The Field Museum of Natural
History; formerly associated with the Allstate Companies (1966-1994), most
recently as Chairman of The Allstate Corporation (March 1993-December 1994)
and Chairman and Chief Executive Officer of its wholly-owned subsidiary,
Allstate Insurance Company (July 1989-December 1994); director of various
other business and charitable organizations.
MICHAEL E. NUGENT, Trustee since April, 1993; age 60; General Partner,
Triumph Capital, L.P., a private investment partnership (since 1988); Director
or Trustee of the Dean Witter Funds; Trustee of the TCW/DW Funds; formerly
Vice President, Bankers Trust Company and BT Capital Corporation (1984-1988);
Director of various business organizations.
PHILIP J. PURCELL, Trustee since April, 1994; age 53; Chairman of the Board
of Directors and Chief Executive Officer of DWDC, DWR and Novus Credit
Services Inc; Director of InterCapital, DWSC and Dean Witter Distributors Inc.
("Distributors"); Director or Trustee of the Dean Witter Funds; Director
and/or officer of various DWDC subsidiaries.
The nominee for Trustee to be elected by only the Preferred Shareholders
is:
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JOHN R. HAIRE, Trustee since April, 1993; age 72; Chairman of the Audit
Committee and Chairman of the Committee of the Independent Directors or
Trustees and Director or Trustee of the Dean Witter Funds; Chairman of the
Audit Committee and Chairman of the Committee of the Independent Trustees and
Trustee of the TCW/DW Funds; formerly President, Council for Aid to Education
(1978-1989) and Chairman and Chief Executive Officer of Anchor Corporation, an
investment adviser (1964-1978); Director of Washington National Corporation
(insurance).
The Trustees who are not standing for re-election at this Meeting are:
MICHAEL BOZIC, Trustee since April, 1994; age 56; Chairman and Chief
Executive Officer of Levitz Furniture Corporation (since November, 1995);
Director or Trustee of the Dean Witter Funds; formerly President and Chief
Executive Officer of Hills Department Stores (May, 1991-July, 1995); formerly
variously Chairman, Chief Executive Officer, President and Chief Operating
Officer (1987-1991) of the Sears Merchandise Group of Sears, Roebuck and Co.;
Director of Eaglemark Financial Services, Inc., the United Negro College Fund
and Weirton Steel Corporation.
CHARLES A. FIUMEFREDDO, Trustee since March, 1993; age 63; Chairman, Chief
Executive Officer and Director of InterCapital, DWSC and Distributors;
Executive Vice President and Director of DWR; Chairman, Director or Trustee,
President and Chief Executive Officer of the Dean Witter Funds; Chairman,
Chief Executive Officer and Trustee of the TCW/DW Funds; Chairman and Director
of DWTC; Director and/or officer of various DWDC subsidiaries; formerly
Executive Vice President and Director of DWDC (until February, 1993).
MANUEL H. JOHNSON, Trustee since April, 1993; age 48; Senior Partner,
Johnson Smick International, Inc., a consulting firm; Co-Chairman and a
founder of the Group of Seven Council (G7C), an international economic
commission; Director or Trustee of the Dean Witter Funds; Trustee of the
TCW/DW Funds; Director of NASDAQ (since June, 1995); Director of Greenwich
Capital Markets Inc. (broker-dealer); Trustee of the Financial Accounting
Foundation (oversight organization for the FASB); formerly Vice Chairman of
the Board of Governors of the Federal Reserve System (1986-1990) and Assistant
Secretary of the U.S. Treasury (1982-1986).
JOHN L. SCHROEDER, Trustee since April, 1994; age 66; Retired; Director or
Trustee of the Dean Witter Funds; Trustee of the TCW/DW Funds; Director of
Citizens Utilities Company; formerly Executive Vice President and Chief
Investment Officer of The Home Insurance Company (August, 1991-September,
1995) and formerly Chairman and Chief Investment Officer of Axe-Houghton
Management and the Axe-Houghton Funds (April, 1983-June, 1991).
The executive officers of the Trust other than shown above are: Barry
Fink, Vice President, Secretary and General Counsel; Robert M. Scanlan, Vice
President; Robert S. Giambrone, Vice President; Joseph J. McAlinden, Vice
President; James F. Willison, Vice President; and Thomas F. Caloia,
Treasurer. In addition, Peter M. Avelar, Katherine H. Stromberg, Joseph R.
Arcieri, Gerard J. Lian and Jonathan R. Page are Vice Presidents of the Trust
and Frank Bruttomesso, Marilyn K. Cranney, Lou Anne D. McInnis, Carsten Otto
and Ruth Rossi serve as Assistant Secretaries. Mr. Fink is 42 years old and
is currently First Vice President (since June 1993), Secretary and General
Counsel (since February 1997) of InterCapital and DWSC and (since August
1996) Assistant Secretary of DWR; he is also First Vice President, Assistant
Secretary and Assistant General Counsel of Distributors (since February
1997). He was previously Vice President, Assistant Secretary and Assistant
General Counsel of InterCapital and DWSC. Mr. Scanlan is 60 years old and is
currently President and Chief Operating Officer of InterCapital (since March,
1993) and DWSC; he is also Executive Vice President of Distributors and
Executive Vice President and Director of DWTC. He was previously Executive
Vice President of InterCapital (July, 1992-March, 1993) and prior thereto was
Chairman of
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Harborview Group Inc. Mr. Giambrone is 42 years old and is currently Senior
Vice President of InterCapital, DWSC, Distributors and DWTC (since August,
1995) and a Director of DWTC (since April, 1996). He was formerly a partner
of KPMG Peat Marwick, LLP. Mr. McAlinden is 54 years old and is currently
Executive Vice President of InterCapital (since April, 1996); he is also
Chief Investment Officer of InterCapital and Director of DWTC (since April,
1996). He was previously a Senior Vice President of InterCapital (June,
1995-April, 1996) and prior thereto was a Managing Director of Dillon Read.
Mr. Willison is 53 years old and is currently Senior Vice President of
InterCapital. Mr. Caloia is 51 years old and is currently First Vice
President of InterCapital and DWSC. Mr. Avelar is 38 years old and is
currently Senior Vice President of InterCapital. Ms. Stromberg is 48 years
old and is currently Vice President of InterCapital (since April, 1992). She
was formerly a portfolio manager with InterCapital (October, 1991-April,
1992). Mr. Arcieri is 48 years old and is currently Vice President of
InterCapital. Mr. Lian is 42 years old and is currently Vice President of
InterCapital. Mr. Page is 50 years old and is currently Senior Vice President
of InterCapital. Other than Mr. Scanlan, Mr. Giambrone and Mr. McAlinden,
each of the above officers has been an employee of InterCapital or DWR
(formerly the corporate parent of InterCapital) for over five years.
THE BOARD OF TRUSTEES, THE INDEPENDENT TRUSTEES, AND THE COMMITTEES
The Board of Trustees currently consists of eight (8) trustees. These same
individuals also serve as directors or trustees for all of the Dean Witter
Funds, and are referred to in this section as Trustees. As of the date of this
Proxy Statement, there are a total of 84 Dean Witter Funds, comprised of 127
portfolios. As of February 28, 1997, the Dean Witter Funds had total net
assets of approximately $84.2 billion and more than six million shareholders.
Six Trustees and the new nominee (77% of the total number) have no
affiliation or business connection with InterCapital or any of its affiliated
persons. The other two Trustees (the "Management Trustees") are affiliated
with InterCapital. For a period of at least three years after the consummation
of the Merger, at least 75% of the members of the Board of Trustees of the
Trust will not be "interested persons" (as defined in the 1940 Act) of the
Investment Manager. Four of the six Independent Trustees are also Independent
Trustees of the TCW/DW Funds.
Law and regulation establish both general guidelines and specific duties
for the Independent Trustees. The Dean Witter Funds seek as Independent
Trustees individuals of distinction and experience in business and finance,
government service or academia; these are people whose advice and counsel are
in demand by others and for whom there is often competition. To accept a
position on the Funds' Boards, such individuals may reject other attractive
assignments because the Funds make substantial demands on their time. Indeed,
by serving on the Funds' Boards, certain Trustees who would otherwise be
qualified and in demand to serve on bank boards would be prohibited by law
from doing so.
All of the Independent Trustees serve as members of the Audit Committee and
the Committee of the Independent Trustees. Three of them also serve as members
of the Derivatives Committee. The Committees hold some meetings at
InterCapital's offices and some outside InterCapital. Management Trustees or
officers do not attend these meetings unless they are invited for purposes of
furnishing information or making a report. The Funds do not have any
nominating or compensation committees.
The Committee of the Independent Trustees is charged with recommending to
the full Board approval of management, advisory and administration contracts,
and distribution and underwriting agreements; continually
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reviewing Fund performance; checking on the pricing of portfolio securities,
brokerage commissions, transfer agent costs and performance, and trading among
Funds in the same complex; and approving fidelity bond and related insurance
coverage and allocations, as well as other matters that arise from time to
time.
The Audit Committee is charged with recommending to the full Board the
engagement or discharge of the Fund's independent accountants; directing
investigations into matters within the scope of the independent accountants'
duties, including the power to retain outside specialists; reviewing with the
independent accountants the audit plan and results of the auditing engagement;
approving professional services provided by the independent accountants and
other accounting firms prior to the performance of such services; reviewing
the independence of the independent accountants; considering the range of
audit and non-audit fees; reviewing the adequacy of the Fund's system of
internal controls; and preparing and submitting Committee meeting minutes to
the full Board.
Finally, the Board of each Fund has formed a Derivatives Committee to
establish parameters for and oversee the activities of the Fund with respect
to derivative investments, if any, made by the Fund.
For the fiscal year ended October 31, 1996, the Board of Trustees of the
Trust held 6 meetings, and the Audit Committee, the Committee of the
Independent Trustees and the Derivatives Committee of the Trust held 3, 10 and
3 meetings, respectively. No Trustee attended fewer than 75% of the meetings
of the Board of Trustees, the Audit Committee, the Committee of the
Independent Trustees or the Derivatives Committee held while he served in such
positions.
DUTIES OF CHAIRMAN OF COMMITTEE OF THE INDEPENDENT TRUSTEES AND AUDIT
COMMITTEE
The Chairman of the Committee of the Independent Trustees and the Audit
Committee maintains an office at the Funds' headquarters in New York. He is
responsible for keeping abreast of regulatory and industry developments and
the Funds' operations and management. He screens and/or prepares written
materials and identifies critical issues for the Independent Trustees to
consider, develops agendas for Committee meetings, determines the type and
amount of information that the Committees will need to form a judgment on
various issues, and arranges to have that information furnished to Committee
members. He also arranges for the services of independent experts and consults
with them in advance of meetings to help refine reports and to focus on
critical issues. Members of the Committees believe that the person who serves
as Chairman of both Committees and guides their efforts is pivotal to the
effective functioning of the Committees.
The Chairman of the Committees also maintains continuous contact with the
Funds' management, with independent counsel to the Independent Trustees and
with the Funds' independent auditors. He arranges for a series of special
meetings involving the annual review of investment advisory, management and
other operating contracts of the Funds and, on behalf of the Committees,
conducts negotiations with the Investment Manager and other service providers.
In effect, the Chairman of the Committees serves as a combination of chief
executive and support staff of the Independent Trustees.
The Chairman of the Committee of the Independent Trustees and the Audit
Committee is not employed by any other organization and devotes his time
primarily to the services he performs as Committee Chairman and Independent
Trustee of the Dean Witter Funds and as an Independent Trustee and, since July
1, 1996, as Chairman of the Committee of the Independent Trustees and the
Audit Committee of the TCW/DW Funds. The current Committee Chairman has had
more than 35 years experience as a senior executive in the investment company
industry.
ADVANTAGES OF HAVING SAME INDIVIDUALS AS INDEPENDENT TRUSTEES FOR ALL DEAN
WITTER FUNDS
The Independent Trustees and the Funds' management believe that having the
same Independent Trustees for each of the Dean Witter Funds avoids the
duplication of effort that would arise from having different groups
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of individuals serving as Independent Trustees for each of the Funds or even
of sub-groups of Funds. They believe that having the same individuals serve as
Independent Trustees of all the Funds tends to increase their knowledge and
expertise regarding matters which affect the Fund complex generally and
enhances their ability to negotiate on behalf of each Fund with the Fund's
service providers. This arrangement also precludes the possibility of separate
groups of Independent Trustees arriving at conflicting decisions regarding
operations and management of the Funds and avoids the cost and confusion that
would likely ensue. Finally, having the same Independent Trustees serve on all
Fund Boards enhances the ability of each Fund to obtain, at modest cost to
each separate Fund, the services of Independent Trustees, and a Chairman of
their Committees, of the caliber, experience and business acumen of the
individuals who serve as Independent Trustees of the Dean Witter Funds.
SHARE OWNERSHIP BY TRUSTEES
The Trustees have adopted a policy pursuant to which each Trustee and/or
his or her spouse is required to invest at least $25,000 in any of the Funds
in the Dean Witter Funds complex (and, if applicable, in the TCW/DW Funds
complex) on whose boards the Trustee serves. In addition, the policy
contemplates that the Trustees will, over time, increase their aggregate
investment in the Funds above the $25,000 minimum requirement. The Trustees
may allocate their investments among specific Funds in any manner they
determine is appropriate based on their individual investment objectives. As
of the date of this Proxy Statement, each Trustee is in compliance with the
policy. Any future Trustee will be given a one year period following his or
her election within which to comply with the foregoing. As of December 31,
1996, the total value of the investments by the Trustees and/or their spouses
in shares of the Dean Witter Funds (and, if applicable, the TCW/DW Funds) was
approximately $9.8 million.
As of the record date for this meeting, the aggregate number of shares of
beneficial interest of the Trust owned by the Trust's officers and Trustees as
a group was less than 1 percent of the Trust's shares of beneficial interest
outstanding.
COMPENSATION OF INDEPENDENT TRUSTEES
The Trust pays each Independent Trustee an annual fee of $1,000 plus a per
meeting fee of $50 for meetings of the Board of Trustees or committees of the
Board of Trustees attended by the Trustee (the Trust pays the Chairman of the
Audit Committee an annual fee of $750 and pays the Chairman of the Committee
of the Independent Trustees an additional annual fee of $1,200). The Trust
also reimburses such Trustees for travel and other out-of-pocket expenses
incurred by them in connection with attending such meetings. Trustees and
officers of the Trust who are or have been employed by the Investment Manager
or an affiliated company receive no compensation or expense reimbursement from
the Trust.
8
<PAGE>
The following table illustrates the compensation paid to the Trust's
Independent Trustees by the Trust for the fiscal year ended October 31, 1996.
TRUST COMPENSATION
<TABLE>
<CAPTION>
AGGREGATE
COMPENSATION
NAME OF INDEPENDENT TRUSTEE FROM THE TRUST
- --------------------------- --------------
<S> <C>
Michael Bozic .............. $1,750
Edwin J. Garn .............. 1,800
John R. Haire .............. 3,850
Dr. Manuel H. Johnson....... 1,750
Michael E. Nugent .......... 1,750
John L. Schroeder........... 1,750
</TABLE>
The following table illustrates the compensation paid to the Trust's
Independent Trustees for the calendar year ended December 31, 1996 for
services to the 82 Dean Witter Funds and, in the case of Messrs. Haire,
Johnson, Nugent and Schroeder, the 14 TCW/DW Funds that were in operation at
December 31, 1996. With respect to Messrs. Haire, Johnson, Nugent and
Schroeder, the TCW/DW Funds are included solely because of a limited exchange
privilege between those Funds and five Dean Witter Money Market Funds.
CASH COMPENSATION FROM DEAN WITTER FUNDS AND TCW/DW FUNDS
<TABLE>
<CAPTION>
FOR SERVICE AS
CHAIRMAN OF
COMMITTEES OF FOR SERVICE AS
INDEPENDENT CHAIRMAN OF
FOR SERVICE DIRECTORS/ COMMITTEES OF TOTAL CASH
AS DIRECTOR OR FOR SERVICE AS TRUSTEES AND INDEPENDENT COMPENSATION
TRUSTEE AND TRUSTEE AND AUDIT TRUSTEES FOR SERVICES TO
COMMITTEE MEMBER COMMITTEE MEMBER COMMITTEES OF 82 AND AUDIT 82 DEAN WITTER
NAME OF OF 82 DEAN WITTER OF 14 TCW/DW DEAN WITTER COMMITTEES OF 14 FUNDS AND 14
INDEPENDENT TRUSTEE FUNDS FUNDS FUNDS TCW/DW FUNDS TCW/DW FUNDS
- --------------------- ----------------- ---------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
Michael Bozic ........ $138,850 -- -- -- $138,850
Edwin J. Garn ........ 140,900 -- -- -- 140,900
John R. Haire ........ 106,400 $64,283 $195,450 $12,187 378,320
Dr. Manuel H.
Johnson.............. 137,100 66,483 -- -- 203,583
Michael E. Nugent ... 138,850 64,283 -- -- 203,133
John L. Schroeder .... 137,150 69,083 -- -- 206,233
</TABLE>
As of the date of this Proxy Statement, 57 of the Dean Witter Funds, not
including the Trust, have adopted a retirement program under which an
Independent Trustee who retires after serving for at least five years (or such
lesser period as may be determined by the Board) as an Independent Director or
Trustee of any Dean Witter Fund that has adopted the retirement program (each
such Fund referred to as an "Adopting Fund" and each such Trustee referred to
as an "Eligible Trustee") is entitled to retirement payments upon reaching the
eligible retirement age (normally, after attaining age 72). Annual payments
are based upon length of service. Currently, upon retirement, each Eligible
Trustee is entitled to receive from the Adopting Fund, commencing as of his or
her retirement date and continuing for the remainder of his or her life, an
annual retirement benefit (the "Regular Benefit") equal to 25.0% of his or her
Eligible Compensation plus 0.4166666% of such Eligible Compensation for each
full month of service as an Independent Director or Trustee of any Adopting
Fund in
9
<PAGE>
excess of five years up to a maximum of 50.0% after ten years of service. The
foregoing percentages may be changed by the Board.(1) "Eligible Compensation"
is one-fifth of the total compensation earned by such Eligible Trustee for
service to the Adopting Fund in the five year period prior to the date of the
Eligible Trustee's retirement. Benefits under the retirement program are not
secured or funded by the Adopting Funds.
The following table illustrates the retirement benefits accrued to the
Trust's Independent Trustees by the 57 Dean Witter Funds (not including the
Trust) for the year ended December 31, 1996, and the estimated retirement
benefits for the Trust's Independent Trustees, to commence upon their
retirement, from the 57 Dean Witter Funds as of December 31, 1996.
RETIREMENT BENEFITS FROM ALL DEAN WITTER FUNDS
<TABLE>
<CAPTION>
RETIREMENT ESTIMATED ANNUAL
ESTIMATED BENEFITS BENEFITS
CREDITED YEARS ESTIMATED ACCRUED AS UPON RETIREMENT
OF SERVICE AT PERCENTAGE OF EXPENSES FROM ALL
RETIREMENT ELIGIBLE BY ALL ADOPTING
NAME OF INDEPENDENT TRUSTEE (MAXIMUM 10) COMPENSATION ADOPTING FUNDS FUNDS(2)
- --------------------------- -------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Michael Bozic .............. 10 50.0% $20,147 $ 51,325
Edwin J. Garn .............. 10 50.0 27,772 51,325
John R. Haire .............. 10 50.0 46,952 129,550
Dr. Manuel H. Johnson ..... 10 50.0 10,926 51,325
Michael E. Nugent .......... 10 50.0 19,217 51,325
John L. Schroeder........... 8 41.7 38,700 42,771
</TABLE>
- ------------
(1) An Eligible Trustee may elect alternate payments of his or her
retirement benefits based upon the combined life expectancy of such
Eligible Trustee and his or her spouse on the date of such Eligible
Trustee's retirement. The amount estimated to be payable under this
method, through the remainder of the later of the lives of such
Eligible Trustee and spouse, will be the actuarial equivalent of the
Regular Benefit. In addition, the Eligible Trustee may elect that the
surviving spouse's periodic payment of benefits will be equal to either
50% or 100% of the previous periodic amount, an election that,
respectively, increases or decreases the previous periodic amount so
that the resulting payments will be the actuarial equivalent of the
Regular Benefit.
(2) Based on current levels of compensation. Amount of annual benefits also
varies depending on the Trustee's elections described in Footnote (1)
above.
THE BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR THE ELECTION OF
EACH OF THE TRUSTEES NOMINATED FOR ELECTION.
(2) APPROVAL OR DISAPPROVAL OF NEW INVESTMENT
MANAGEMENT AGREEMENT
BACKGROUND
InterCapital currently serves as investment manager of the Trust pursuant
to an investment management agreement entered into by the Trust and
InterCapital (the "Current Agreement"), and in that capacity provides
investment advisory and certain other services to the Trust. InterCapital is a
wholly-owned subsidiary of DWDC. The approval of a new investment management
agreement between the Trust and InterCapital (the "New Agreement") is being
sought in connection with the proposed merger of Morgan Stanley Group Inc.
("Morgan Stanley") and DWDC (the "Merger").
INFORMATION CONCERNING MORGAN STANLEY GROUP
Morgan Stanley and various of its directly or indirectly owned
subsidiaries, including Morgan Stanley & Co. Incorporated ("Morgan Stanley &
Co."), a registered broker-dealer and investment adviser, and Morgan
10
<PAGE>
Stanley International, provide a wide range of financial services on a global
basis. Their principal businesses include securities underwriting,
distribution and trading; merger, acquisition, restructuring, real estate,
project finance and other corporate finance advisory activities; merchant
banking and other principal investment activities; stock brokerage and
research services; asset management; the trading of foreign exchange and
commodities on a broad range of asset categories, rates and indices; and
global custody, securities clearance services and securities lending.
THE MERGER
Pursuant to the terms of the Merger, Morgan Stanley will be merged with and
into DWDC with the surviving corporation to be named Morgan Stanley, Dean
Witter, Discover & Co. Following the Merger, InterCapital will be a direct
wholly-owned subsidiary of Morgan Stanley, Dean Witter, Discover & Co.
Under the terms of the Merger, each share of Morgan Stanley common stock
will be converted into the right to receive 1.65 shares of DWDC common stock
and each issued and outstanding share of DWDC common stock will remain
outstanding and will thereafter represent one share of Morgan Stanley, Dean
Witter, Discover & Co. common stock. Following the Merger, Morgan Stanley's
shareholders will own approximately 45% and DWDC's shareholders will own
approximately 55% of the outstanding shares of common stock of Morgan Stanley,
Dean Witter, Discover & Co.
The Board of Directors of Morgan Stanley, Dean Witter, Discover & Co. will
consist of fourteen members, two of which will be Morgan Stanley insiders and
two of which will be DWDC insiders. The remaining ten directors will be
independent directors, with Morgan Stanley and DWDC each nominating five of
the ten. The Chairman and Chief Executive Officer of Morgan Stanley, Dean
Witter, Discover & Co. will be the current Chairman and Chief Executive
Officer of DWDC, Philip J. Purcell. The President and Chief Operating Officer
of Morgan Stanley, Dean Witter, Discover & Co. will be the current President
of Morgan Stanley, John Mack.
The Merger is expected to be completed in mid-1997 and is subject to
certain closing conditions, including certain regulatory approvals and the
approval of shareholders of both DWDC and Morgan Stanley.
APPROVAL OF NEW INVESTMENT MANAGEMENT AGREEMENT
In order to assure continuity of investment management services to the
Trust after the Merger, the Board of the Trust met in person for the purpose
of considering whether it would be in the best interests of the Trust and its
Shareholders to enter into a New Agreement between the Trust and the
Investment Manager which would become effective upon the later of Shareholder
approval of the New Agreement or consummation of the Merger. At its meeting,
and for the reasons discussed below (see "The Board's Consideration"), the
Board of the Trust, including each of the Independent Trustees, unanimously
approved the New Agreement and recommended its approval by Shareholders.
THE TERMS OF THE NEW AGREEMENT, INCLUDING FEES PAYABLE BY THE TRUST
THEREUNDER, ARE IDENTICAL, IN ALL MATERIAL RESPECTS, TO THOSE OF THE
CORRESPONDING CURRENT AGREEMENT, EXCEPT FOR THE DATES OF EFFECTIVENESS AND
EXPIRATION. The terms of the Current Agreement are fully described under "The
Current Investment Management Agreement" below. If approved by Shareholders,
the New Agreement will become effective upon the later of Shareholder approval
of the New Agreement or consummation of the Merger and will continue in effect
for an initial term expiring April 30, 1999 and will continue in effect from
year to year thereafter if such continuance is approved by the Board or by a
majority of the outstanding voting securities (as defined below) of the Trust
and, in either event, by the vote cast in person of a majority of the
Independent Trustees. In the
11
<PAGE>
event that Shareholders of the Trust do not approve a New Agreement, the
Current Agreement will remain in effect and the Board will take such action,
if any, as it deems to be in the best interests of the Trust and its
Shareholders, which may include proposing that Shareholders approve an
agreement in lieu of the New Agreement. In the event that the Merger is not
consummated, the Investment Manager will continue to provide services to the
Trust in accordance with the terms of the Current Agreement for such periods
as may be approved at least annually by the Board, including a majority of the
Independent Trustees of the Trust.
REQUIRED VOTE
The New Agreement cannot be implemented unless approved at the Meeting, or
any adjournment thereof, by a majority of the outstanding voting securities of
the Trust (Common Shares and Preferred Shares voting together as a single
class). Such a majority means the affirmative vote of the holders of (a) 67%
or more of the shares of the Trust present, in person or by proxy, at the
Meeting, if the holders of more than 50% of the outstanding shares are so
present, or (b) more than 50% of the outstanding shares of the Trust,
whichever is less.
THE BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR APPROVAL OF THE
NEW INVESTMENT MANAGEMENT AGREEMENT.
THE BOARD'S CONSIDERATION
At a special meeting of the Committee of the Independent Trustees of the
Trust held on February 20, 1997, at which each of the Independent Trustees of
the Trust was present, and a meeting of the full Board on February 21, 1997,
the Trustees evaluated the New Agreement (the form of which is attached hereto
as an Exhibit). Prior to and during the meeting, the Independent Trustees
requested and received all information they deemed necessary to enable them to
determine whether the New Agreement is in the best interests of the Trust and
its Shareholders. They were assisted in their review and deliberations by
independent legal counsel. In determining whether to approve the New
Agreement, the Trustees assessed the implications of the Merger for the
Investment Manager and its ability to continue to provide services to the
Trust of the same scope and quality as are presently provided. In particular,
the Trustees inquired as to the impact of the Merger on the Investment
Manager's personnel, management, facilities and financial capabilities and
received assurances in this regard from senior management of DWDC and the
Investment Manager that the Merger would not adversely affect the Investment
Manager's ability to fulfill its obligations under its agreement with the
Trust or to operate its business in a manner consistent with past practices.
In addition, the Trustees considered the effects of the Investment Manager and
Morgan Stanley becoming an affiliated persons of each other. Following the
Merger, the 1940 Act will prohibit or impose certain conditions on the ability
of the Trust to engage in certain transactions with Morgan Stanley and its
affiliates. For example, absent exemptive relief, the Trust will be prohibited
from purchasing securities from Morgan Stanley & Co., a wholly-owned
broker-dealer subsidiary of Morgan Stanley, in transactions in which Morgan
Stanley & Co. acts as principal, and the Trust will have to satisfy certain
conditions in order to engage in securities transactions in which Morgan
Stanley & Co. acts as broker or to purchase securities in an underwritten
offering in which Morgan Stanley & Co. acts as an underwriter. In this
connection, senior management of the Investment Manager represented to the
Trustees that they do not believe these prohibitions or conditions will have a
material effect on the management or performance of the Trust.
The Trustees also considered that the New Agreement is identical, in all
material respects, to the Current Agreement (other than the dates of
effectiveness and termination).
Based upon the Trustees' review and the evaluations of the materials they
received, and in consideration of all factors deemed relevant to them, the
Trustees of the Trust, including all of the Independent Trustees,
12
<PAGE>
determined that the New Agreement is in the best interests of the Trust and
its Shareholders. ACCORDINGLY, THE BOARD, INCLUDING ALL OF THE INDEPENDENT
TRUSTEES, APPROVED THE NEW AGREEMENT AND VOTED TO RECOMMEND APPROVAL BY
SHAREHOLDERS OF THE TRUST.
THE CURRENT INVESTMENT MANAGEMENT AGREEMENT
The Current Agreement provides that the Investment Manager shall obtain and
evaluate such information and advice relating to the economy, securities and
commodity markets and securities and commodities as it deems necessary or
useful to discharge its duties under the Current Agreement, and that it shall
continuously supervise the management of the assets of the Trust in a manner
consistent with the investment objectives and policies of the Trust and
subject to such other limitations and directions as the Board may, from time
to time, prescribe.
The Current Agreement provides that the Investment Manager shall
continuously manage the assets of the Trust in a manner consistent with the
Trust's investment objectives. The Investment Manager has authority to place
orders for the purchase and sale of portfolio securities on behalf of the
Trust without prior approval of its Trustees. The Trustees review the
investment portfolio at their regular meetings. In addition, the Investment
Manager pays the compensation of the officers of the Trust and provides the
Trust with office space and equipment and such clerical help and bookkeeping
services and telephone service, heat, light, power and other utilities. The
Investment Manager also pays for the services of personnel in connection with
the pricing of the Trust's shares and the preparation of prospectuses, proxy
statements and reports required to be filed with the Federal and state
securities commissions (except insofar as the participation or assistance of
independent accountants and attorneys is, in the opinion of the Investment
Manager, necessary or desirable). In return for its investment services and
the expenses which the Investment Manager assumes under the Current Agreement,
the Trust pays the Investment Manager compensation which is accrued weekly and
payable monthly and which is determined by applying the annual rate of 0.35%
to the Trust's average weekly net assets. Pursuant to the Current Agreement,
the Trust accrued to the Investment Manager total compensation of $328,868
during the fiscal year ended October 31, 1996. The net assets of the Trust
totalled $93,050,049 at October 31, 1996.
Under the Current Agreement, the Trust is obligated to bear all of the
costs and expenses of its operation, except those specifically assumed by the
Investment Manager, including, without limitation: charges and expenses of any
registrar, custodian or depository appointed by the Trust for the safekeeping
of its cash, portfolio securities or commodities and other property, and any
stock transfer or dividend agent or agents appointed by the Trust; brokers'
commissions chargeable to the Trust in connection with portfolio securities
transactions to which the Trust is a party; all taxes, including securities or
commodities issuance and transfer taxes, and fees payable by the Trust to
Federal, state or other govenmental agencies; costs and expenses of engraving
or printing certificates representing shares of the Trust; all costs and
expenses in connection with registration and maintenance of registration of
the Trust and of its shares with the Securities and Exchange Commission and
various states and other jurisdictions (including filing fees and legal fees
and disbursements of counsel) and the costs and expense of preparing, printing
(including typesetting) and distributing prospectuses for such purposes; all
expenses of Shareholders' and Trustees' meetings and of preparing, printing
and mailing proxy statements and reports to Shareholders; fees and travel
expenses of Trustees or members of any advisory board or committee who are not
employees of the Investment Manager or any corporate affiliate of the
Investment Manager; all expenses incident to the payment of any dividend or
distribution program; charges and expenses of any outside pricing services;
charges and expenses of legal counsel, including counsel to the Independent
Trustees of the Trust, and independent accountants in connection with any
matter relating to the Trust (not including compensation or expenses of
attorneys employed by the Investment Manager); membership dues of industry
associations; interest payable on Trust borrowings; fees and expenses incident
to the listing of the Trust's shares on any stock exchange; postage; insurance
premiums on property or personnel
13
<PAGE>
(including officers and Trustees) of the Trust which inure to its benefit;
extraordinary expenses (including, but not limited to, legal claims,
liabilities, litigation costs and any indemnification related thereto); and
all other charges and costs of the Trust's operations unless otherwise
explicitly provided in the Current Agreement.
The Current Agreement was initially approved by the Board, including all of
the Independent Trustees, at a meeting held on April 28, 1993, and was
approved by InterCapital, the then sole shareholder of the Trust, on September
21, 1993. The Current Agreement was last approved by the Shareholders of the
Trust as a routine matter at their Annual Meeting of Shareholders held on June
27, 1996.
The Current Agreement had an initial term ending April 30, 1995 and
provides that, after the initial period of effectiveness, it will continue in
effect from year to year thereafter provided such continuance is approved at
least annually by vote of a majority, as defined in the 1940 Act, of the
outstanding voting securities of the Trust or by the Trustees of the Trust,
and, in either event, by the vote cast in person by a majority of the Trustees
who are not parties to the Current Agreement or "interested persons" of any
such party (as defined in the 1940 Act) at a meeting called for the purpose of
voting on such approval. The Current Agreement's most recent continuation
until April 30, 1997 was approved by the Trustees, including a majority of
Independent Trustees, at a Meeting of the Trustees held on April 17, 1996,
called for the purpose of approving the Current Agreement.
The Current Agreement also provides that it may be terminated at any time
by the Investment Manager, the Trustees of the Trust or by a vote of a
majority of the outstanding voting securities of the Trust, in each instance
without the payment of any penalty, on thirty days' notice and will
automatically terminate upon any assignment.
The administrative services called for under the Current Agreement are
performed by DWSC, a wholly-owned subsidiary of InterCapital, pursuant to a
Services Agreement between InterCapital and DWSC.
THE INVESTMENT MANAGER
Dean Witter InterCapital Inc. is the Trust's investment manager.
InterCapital maintains its offices at Two World Trade Center, New York, New
York 10048. InterCapital, which was incorporated in July, 1992, is a
wholly-owned subsidiary of DWDC, a balanced financial services organization
providing a broad range of nationally marketed credit and investment products.
The Principal Executive Officer and Directors of InterCapital, and their
principal occupations, are:
Philip J. Purcell, Chairman of the Board of Directors and Chief Executive
Officer of DWDC and DWR and Director of InterCapital, DWSC and Distributors;
Richard M. DeMartini, President and Chief Operating Officer of Dean Witter
Capital, Executive Vice President of DWDC and Director of DWR, Distributors,
InterCapital, DWSC and DWTC; James F. Higgins, President and Chief Operating
Officer of Dean Witter Financial, Executive Vice President of DWDC and
Director of DWR, Distributors, InterCapital, DWSC and DWTC; Charles A.
Fiumefreddo, Executive Vice President and Director of DWR, Chairman of the
Board of Directors, Chief Executive Officer and Director of InterCapital, DWSC
and Distributors and Chairman of the Board of Directors and Director of DWTC;
Christine A. Edwards, Executive Vice President, Secretary and General Counsel
of DWDC, Executive Vice President, Secretary, General Counsel and Director of
DWR, Executive Vice President, Secretary, Chief Legal Officer and Director of
Distributors and Director of InterCapital and DWSC; and Thomas C. Schneider,
Executive Vice President, Chief Financial Officer and Director of DWR,
Distributors, InterCapital and DWSC.
The business address of the foregoing Directors and Executive Officer is
Two World Trade Center, New York, New York 10048. DWDC has its offices at Two
World Trade Center, New York, New York 10048.
14
<PAGE>
InterCapital and its wholly-owned subsidiary, DWSC, serve in various
investment management, advisory, management and administrative capacities to
investment companies and pension plans and other institutional and individual
investors. The Appendix lists the investment companies for which InterCapital
provides investment management or investment advisory services and which have
similar investment objectives to that of the Trust, and sets forth the fees
payable by such companies, including the Trust, and their net assets as of
March 12, 1997. DWSC also has its offices at Two World Trade Center, New York,
New York 10048.
During the fiscal year ended October 31, 1996, the Trust accrued to DWTC,
the Trust's Transfer Agent and an affiliate of the Investment Manager,
transfer agency fees of $28,951. After the consummation of the Merger and
approval of the New Agreement, DWTC will continue to provide the same services
to the Trust as are being provided currently.
AFFILIATED BROKER
Because DWR and InterCapital are under the common control of DWDC, DWR is
an affiliated broker of the Trust. For the fiscal year ended October 31, 1996,
the Trust paid no brokerage commissions to DWR.
(3) RATIFICATION OR REJECTION OF SELECTION OF INDEPENDENT ACCOUNTANTS
The Trustees have unanimously selected the firm of Price Waterhouse LLP as
the Trust's independent accountants for the fiscal year ending October 31,
1997. Price Waterhouse LLP has been the independent accountants for the Trust
since its inception, and has no direct or indirect financial interest in the
Trust.
A representative of Price Waterhouse LLP is expected to be present at the
Meeting and will be available to make a statement, if he or she so desires,
and to respond to appropriate questions of Shareholders.
The affirmative vote of the holders of a majority of shares represented and
entitled to vote at the Annual Meeting is required for ratification of the
selection of Price Waterhouse LLP as the independent accountants for the
Trust.
THE TRUSTEES UNANIMOUSLY RECOMMEND THAT SHAREHOLDERS RATIFY THE SELECTION
OF PRICE WATERHOUSE LLP AS THE INDEPENDENT ACCOUNTANTS FOR THE TRUST.
ADDITIONAL INFORMATION
In the event that the necessary quorum to transact business or the vote
required to approve or reject any proposal is not obtained at the Meeting, the
persons named as proxies may propose one or more adjournments of the Meeting
for a total of not more than 60 days in the aggregate to permit further
solicitation of proxies. Any such adjournment will require the affirmative
vote of the holders of a majority of the Trust's shares present in person or
by proxy at the Meeting. The persons named as proxies will vote in favor of
such adjournment those proxies which they are entitled to vote in favor of
proposal 2 and will vote against any such adjournment those proxies required
to be voted against those proposals.
Abstentions and, if applicable, broker "non-votes" will not count as votes
in favor of any of the proposals, and broker "non-votes" will not be deemed to
be present at the meeting for purposes of determining whether a particular
proposal to be voted upon has been approved. Broker "non-votes" are shares
held in street name for which the broker indicates that instructions have not
been received from the beneficial owners or other persons entitled to vote and
for which the broker does not have discretionary voting authority.
SHAREHOLDER PROPOSALS
Proposals of security holders intended to be presented at the next Annual
Meeting of Shareholders must be received no later than November 25, 1997 for
inclusion in the proxy statement for that meeting. The mere submission of a
proposal does not guarantee its inclusion in the proxy materials or its
presentation at the meeting. Certain rules under the federal securities laws
must be met.
15
<PAGE>
REPORTS TO SHAREHOLDERS
THE TRUST'S MOST RECENT ANNUAL REPORT, FOR THE FISCAL YEAR ENDED OCTOBER
31, 1996, HAS BEEN PREVIOUSLY SENT TO SHAREHOLDERS AND IS AVAILABLE WITHOUT
CHARGE UPON REQUEST FROM ADRIENNE RYAN-PINTO AT DEAN WITTER TRUST COMPANY,
HARBORSIDE FINANCIAL CENTER, PLAZA TWO, JERSEY CITY, NEW JERSEY 07311
(TELEPHONE 1-800-869-NEWS) (TOLL-FREE).
INTEREST OF CERTAIN PERSONS
DWDC, InterCapital, DWR, DWSC and certain of their respective Directors,
Officers, and employees, including persons who are Trustees or Officers of the
Trust, may be deemed to have an interest in certain of the proposals described
in this Proxy Statement to the extent that certain of such companies and their
affiliates have contractual and other arrangements, described elsewhere in
this Proxy Statement, pursuant to which they are paid fees by the Trust, and
certain of those individuals are compensated for performing services relating
to the Trust and may also own shares of DWDC. Such companies and persons may
thus be deemed to derive benefits from the approvals by Shareholders of such
proposals.
OTHER BUSINESS
The management of the Trust knows of no other matters which may be
presented at the Meeting. However, if any matters not now known properly come
before the Meeting, it is the intention of the persons named in the enclosed
form of proxy or their substitutes, to vote all shares that they are entitled
to vote on any such matter, utilizing such proxy in accordance with their best
judgment on such matters.
By Order of the Board of Trustees
BARRY FINK
Secretary
16
<PAGE>
APPENDIX
InterCapital serves as investment manager or investment adviser to the
Trust and the other investment companies listed below which have similar
investment objectives to that of the Trust. Set forth below is a chart showing
the net assets of each such investment company as of March 12, 1997 and the
investment management or advisory fee rate(s) applicable to such investment
company.
<TABLE>
<CAPTION>
CURRENT INVESTMENT
MANAGEMENT OR
ADVISORY FEE RATE(S)
NET ASSETS AS A PERCENTAGE
AS OF 03/12/97 OF NET ASSETS
-------------- ------------------------------
<S> <C> <C>
1.DEAN WITTER CALIFORNIA TAX-FREE INCOME FUND* .... $ 945,010,134 0.55% on assets up to $500
million, scaled down at
various asset levels to 0.45%
on assets over $1.25 billion
2.DEAN WITTER LIMITED TERM MUNICIPAL TRUST* ....... 61,210,093 0.50%
3.DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST* . 388,189,887 0.35%
4.DEAN WITTER NATIONAL MUNICIPAL TRUST*............ 84,362,522 0.35% (1)
5.DEAN WITTER NEW YORK TAX-FREE INCOME FUND* ...... 185,662,118 0.55% on assets up to $500
million and 0.525% on assets
over $500 million
6.DEAN WITTER TAX-EXEMPT SECURITIES TRUST* ........ 1,158,271,636 0.50% on assets up to $500
million, scaled down at
various asset levels to 0.325%
on assets over $1.25 billion
7.INTERCAPITAL CALIFORNIA INSURED MUNICIPAL INCOME
TRUST**.......................................... 240,850,768 0.35%
8.INTERCAPITAL CALIFORNIA QUALITY MUNICIPAL
SECURITIES**..................................... 201,480,242 0.35%
9.INTERCAPITAL INSURED CALIFORNIA MUNICIPAL
SECURITIES**..................................... 62,879,708 0.35%
10.INTERCAPITAL INSURED MUNICIPAL BOND TRUST** .... 108,687,697 0.35%
11.INTERCAPITAL INSURED MUNICIPAL INCOME TRUST** .. 577,173,893 0.35%
12.INTERCAPITAL INSURED MUNICIPAL SECURITIES** .... 136,016,212 0.35%
13.INTERCAPITAL INSURED MUNICIPAL TRUST** ......... 481,829,417 0.35%
14.INTERCAPITAL NEW YORK QUALITY MUNICIPAL
SECURITIES**.................................... 92,491,556 0.35%
15.INTERCAPITAL QUALITY MUNICIPAL INCOME TRUST** .. 726,527,989 0.35%
16.INTERCAPITAL QUALITY MUNICIPAL INVESTMENT
TRUST**......................................... 377,428,244 0.35%
17.INTERCAPITAL QUALITY MUNICIPAL SECURITIES** .... 356,447,008 0.35%
18.MUNICIPAL INCOME TRUST**........................ 299,197,956 0.35% on assets up to $250
million and 0.25% on assets
over $250 million
A-1
<PAGE>
CURRENT INVESTMENT
MANAGEMENT OR
ADVISORY FEE RATE(S)
NET ASSETS AS A PERCENTAGE
AS OF 03/12/97 OF NET ASSETS
-------------- ------------------------------
19.MUNICIPAL INCOME TRUST II**..................... $273,432,009 0.40% on assets up to $250
million and 0.30% on assets
over $250 million
20.MUNICIPAL INCOME TRUST III**.................... 61,981,499 0.40% on assets up to $250
million and 0.30% on assets
over $250 million
21.MUNICIPAL INCOME OPPORTUNITIES TRUST** ......... 176,784,608 0.50%
22.MUNICIPAL INCOME OPPORTUNITIES TRUST II** ...... 174,666,431 0.50%
23.MUNICIPAL INCOME OPPORTUNITIES TRUST III** ..... 102,809,085 0.50%
24.MUNICIPAL PREMIUM INCOME TRUST**................ 350,292,786 0.40%
25.DEAN WITTER SELECT MUNICIPAL REINVESTMENT
FUND***......................................... 90,885,593 0.50%
26.DEAN WITTER HAWAII MUNICIPAL TRUST* ............ 3,522,850 0.35% (2)
</TABLE>
- ------------
* Open-end investment company
** Closed-end investment company
*** Open-end investment company offered only to the holders of units of
certain unit investment trusts (UITs) in connection with the
reinvestment of UIT distributions
(1) InterCapital has undertaken, until June 30, 1997, to assume all
operating expenses (except for any 12b-1 and brokerage fees) of Dean
Witter National Municipal Trust and to waive the compensation provided
for in its investment management agreement with that company to the
extent that such expenses and compensation on an annualized basis
exceed 0.50% of the average daily net assets of that company.
(2) InterCapital has undertaken, until June 30, 1997, to assume all
operating expenses (except for any 12b-1 and brokerage fees) of Dean
Witter Hawaii Municipal Trust and to waive the compensation provided
for in its investment management agreement with that company.
A-2
<PAGE>
EXHIBIT
FORM OF NEW INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made as of the day of , 1997 by and between
InterCapital New York Quality Municipal Securities, an unincorporated business
trust organized under the laws of the Commonwealth of Massachusetts
(hereinafter called the "Fund"), and Dean Witter InterCapital Inc., a Delaware
corporation (hereinafter called the "Investment Manager"):
WHEREAS, The Fund intends to engage in business as a closed-end management
investment company and is registered as such under the Investment Company Act
of 1940, as amended (the "Act"); and
WHEREAS, The Investment Manager is registered as an investment adviser
under the Investment Advisers Act of 1940, and engages in the business of
acting as investment adviser; and
WHEREAS, The Fund desires to retain the Investment Manager to render
management and investment advisory services in the manner and on the terms and
conditions hereinafter set forth; and
WHEREAS, The Investment Manager desires to be retained to perform services
on said terms and conditions:
Now, Therefore, this Agreement
W I T N E S S E T H:
that in consideration of the premises and the mutual covenants hereinafter
contained, the Fund and the Investment Manager agree as follows:
1. The Fund hereby retains the Investment Manager to act as investment
manager of the Fund and, subject to the supervision of the Trustees, to
supervise the investment activities of the Fund as hereinafter set forth.
Without limiting the generality of the foregoing, the Investment Manager shall
obtain and evaluate such information and advice relating to the economy,
securities and commodities markets and securities and commodities as it deems
necessary or useful to discharge its duties hereunder; shall continuously
manage the assets of the Fund in a manner consistent with the investment
objectives and policies of the Fund; shall determine the securities and
commodities to be purchased, sold or otherwise disposed of by the Fund and the
timing of such purchases, sales and dispositions; and shall take such further
action, including the placing of purchase and sale orders on behalf of the
Fund, as the Investment Manager shall deem necessary or appropriate. The
Investment Manager shall also furnish to or place at the disposal of the Fund
such of the information, evaluations, analyses and opinions formulated or
obtained by the Investment Manager in the discharge of its duties as the Fund
may, from time to time, reasonably request.
2. The Investment Manager shall, at its own expense, maintain such staff
and employ or retain such personnel and consult with such other persons as it
shall from time to time determine to be necessary or useful to the performance
of its obligations under this Agreement. Without limiting the generality of
the foregoing, the staff and personnel of the Investment Manager shall be
deemed to include persons employed or otherwise retained by the Investment
Manager to furnish statistical and other factual data, advice regarding
economic factors and trends, information with respect to technical and
scientific developments, and such other information, advice and assistance as
the Investment Manager may desire. The Investment Manager shall, as agent for
the Fund, maintain the Fund's records and books of account (other than those
maintained by the Fund's transfer agent, registrar, custodian and other
agencies). All such books and records so maintained shall be the property of
the Fund and, upon request therefor, the Investment Manager shall surrender to
the Fund such of the books and records so requested.
EX-1
<PAGE>
3. The Fund will, from time to time, furnish or otherwise make available
to the Investment Manager such financial reports, proxy statements and other
information relating to the business and affairs of the Fund as the Investment
Manager may reasonably require in order to discharge its duties and
obligations hereunder.
4. The Investment Manager shall bear the cost of rendering the investment
management and supervisory services to be performed by it under this
Agreement, and shall, at its own expense, pay the compensation of the officers
and employees, if any, of the Fund, and provide such office space, facilities
and equipment and such clerical help and bookkeeping services as the Fund
shall reasonably require in the conduct of its business. The Investment
Manager shall also bear the cost of telephone service, heat, light, power and
other utilities provided to the Fund.
5. The Fund assumes and shall pay or cause to be paid all other expenses of
the Fund, including without limitation: the charges and expenses of any
registrar, any custodian or depository appointed by the Fund for the
safekeeping of its cash, portfolio securities or commodities and other
property, and any stock transfer or dividend agent or agents appointed by the
Fund; brokers' commissions chargeable to the Fund in connection with portfolio
transactions to which the Fund is a party; all taxes, including securities or
commodities issuance and transfer taxes, and fees payable by the Fund to
federal, state or other governmental agencies; the cost and expense of
engraving or printing certificates representing shares of the Fund, all costs
and expenses in connection with the registration and maintenance of
registration of the Fund and its shares with the Securities and Exchange
Commission and various states and other jurisdictions (including filing fees
and legal fees and disbursements of counsel) and the costs and expenses of
preparing, printing (including typesetting) and distributing prospectuses for
such purposes; all expenses of shareholders' and Trustees' meetings and of
preparing, printing and mailing proxy statements and reports to shareholders;
fees and travel expenses of Trustees or members of any advisory board or
committee who are not employees of the Investment Manager or any corporate
affiliate of the Investment Manager; all expenses incident to the payment of
any dividend or distribution program; charges and expenses of any outside
service used for pricing of the Fund's shares; charges and expenses of legal
counsel, including counsel to the Trustees of the Fund who are not interested
persons (as defined in the Act) of the Fund or the Investment Manager, and of
independent accountants, in connection with any matter relating to the Fund;
membership dues of industry associations; interest payable on Fund borrowings;
fees and expenses incident to the listing of the Fund's shares on any stock
exchange; postage; insurance premiums on property or personnel (including
officers and Trustees) of the Fund which inure to its benefit; extraordinary
expenses (including but not limited to, legal claims and liabilities and
litigation costs and any indemnification related thereto); and all other
charges and costs of the Fund's operation unless otherwise explicitly provided
herein.
6. For the services to be rendered, the facilities furnished, and the
expenses assumed by the Investment Manager, the Fund shall pay to the
Investment Manager monthly compensation, calculated from the day following
commencement of operations of the Fund, determined by applying the annual rate
of 0.35% to the Fund's average weekly net assets. For the purposes of
calculating the management fee, the liquidation preference of any Preferred
Shares issued by the Fund will not be deducted from the Fund's total assets.
Except as hereinafter set forth, compensation under this Agreement shall be
calculated and accrued weekly and paid monthly by applying the annual rates to
the average weekly net assets of the Fund determined as of the close of the
last business day of each week. At the request of the Investment Manager,
compensation hereunder shall be calculated and accrued at more frequent
intervals in a manner consistent with the calculation of fees on a weekly
basis. If this Agreement becomes effective subsequent to the first day of a
month or shall terminate before the last day of a month, compensation for that
part of the month this Agreement is in effect shall be prorated in a manner
consistent with the calculation of the fees as set forth above.
7. The Investment Manager will use its best efforts in the supervision and
management of the investment activities of the Fund, but in the absence of
willful misfeasance, bad faith, gross negligence or reckless disregard
EX-2
<PAGE>
of its obligations hereunder, the Investment Manager shall not be liable to
the Fund or any of its investors for any error of judgment or mistake of law
or for any act or omission by the Investment Manager or for any losses
sustained by the Fund or its investors.
8. Nothing contained in this Agreement shall prevent the Investment Manager
or any affiliated person of the Investment Manager from acting as investment
adviser or manager for any other person, firm or corporation and shall not in
any way bind or restrict the Investment Manager or any such affiliated person
from buying, selling or trading any securities or commodities for their own
accounts or for the account of others for whom they may be acting. Nothing in
this Agreement shall limit or restrict the right of any Trustee, officer or
employee of the Investment Manager to engage in any other business or to
devote his or her time and attention in part to the management or other
aspects of any other business whether of a similar or dissimilar nature.
9. This Agreement shall remain in effect until April 30, 1999 and from year
to year thereafter provided such continuance is approved at least annually by
the vote of holders of a majority, as defined in the Act, of the outstanding
voting securities of the Fund (Common Shares and Preferred Shares voting
together as a single class) or by the Trustees of the Fund; provided that in
either event such continuance is also approved annually by the vote of a
majority of the Trustees of the Fund who are not parties to this Agreement or
"interested persons" (as defined in the Act) of any such party, which vote
must be cast in person at a meeting called for the purpose of voting on such
approval; provided, however, that (a) the Fund may, at any time and without
the payment of any penalty, terminate this Agreement upon thirty days' written
notice to the Investment Manager, either by majority vote of the Trustees of
the Fund or by the vote of a majority of the outstanding voting securities of
the Fund (Common Shares and Preferred Shares voting together as a single
class); (b) this Agreement shall immediately terminate in the event of its
assignment (to the extent required by the Act and the rules thereunder) unless
such automatic terminations shall be prevented by an exemptive order of the
Securities and Exchange Commission; and (c) the Investment Manager may
terminate this Agreement without payment of penalty on thirty days' written
notice to the Fund. Any notice under this Agreement shall be given in writing,
addressed and delivered, or mailed post-paid, to the other party at the
principal office of such party.
10. This Agreement may be amended by the parties without the vote or
consent of the shareholders of the Fund to supply any omission, to cure,
correct or supplement any ambiguous, defective or inconsistent provision
hereof, or if they deem it necessary to conform this Agreement to the
requirements of applicable federal laws or regulations, but neither the Fund
nor the Investment Manager shall be liable for failing to do so.
11. This Agreement shall be construed in accordance with the laws of the
State of New York and the applicable provisions of the Act. To the extent the
applicable law of the State of New York, or any of the provisions herein,
conflicts with the applicable provisions of the Act, the latter shall control.
12. The Investment Manager and the Fund each agree that the name
"InterCapital," which comprises a component of the Fund's name, is a property
right of the Investment Manager. The Fund agrees and consents that (i) it will
only use the name "InterCapital" as a component of its name and for no other
purpose, (ii) it will not purport to grant to any third party the right to use
the name "InterCapital" for any purpose, (iii) the Investment Manager or its
parent, Dean Witter, Discover & Co., or any corporate affiliate of the
Investment Manager's parent, may use or grant to others the right to use the
name "InterCapital," or any combination or abbreviation thereof, as all or a
portion of a corporate or business name or for any commercial purpose,
including a grant of such right to any other investment company, (iv) at the
request of the Investment Manager or its parent, the Fund will take such
action as may be required to provide its consent to the use of the name
"InterCapital," or any combination or abbreviation thereof, by the Investment
Manager or its parent of any corporate affiliate of the Investment Manager's
parent, or by any person to whom the Investment Manager or its parent or any
corporate affiliate of the Investment Manager's parent shall have granted the
right to such use,
EX-3
<PAGE>
and (v) upon the termination of any investment advisory agreement into which
the Investment Manager and the Fund may enter, or upon termination of
affiliation of the Investment Manager with its parent, the Fund shall, upon
request by the Investment Manager or its parent, cease to use the name
"InterCapital" as a component of its name, and shall not use the name, or any
combination or abbreviation thereof, as a part of its name or for any other
commercial purpose, and shall cause its officers, Trustees and shareholders to
take any and all actions which the Investment Manager or its parent may
request to effect the foregoing and to reconvey to the Investment Manager or
its parent any and all rights to such name.
13. The Declaration of Trust establishing InterCapital New York Quality
Municipal Securities, dated March 3, 1993, a copy of which, together with all
amendments thereto (the "Declaration"), is on file in the office of the
Secretary of the Commonwealth of Massachusetts, provides that the name
InterCapital New York Quality Municipal Securities refers to the Trustees
under the Declaration collectively as Trustees, but not as individuals or
personally; and no Trustee, shareholder, officer, employee or agent of
InterCapital New York Quality Municipal Securities shall be held to any
personal liability, nor shall resort be had to their private property for the
satisfaction of any obligation or claim or otherwise, in connection with the
affairs of said InterCapital New York Quality Municipal Securities, but the
Trust Estate only shall be liable.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement on the day and year first above written in New York, New York.
INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
By --------------------------------
Attest:
- -------------------------------
DEAN WITTER INTERCAPITAL INC.
By -------------------------------
Attest:
- -------------------------------
EX-4
<PAGE>
INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
ANNUAL MEETING OF SHAREHOLDERS--MAY 20, 1997
PROXY
The undersigned hereby appoints BARRY FINK, JOSEPH J. MCALINDEN,
ROBERT M. SCANLAN, or any of them, proxies, each with the power of
substitution, to vote on behalf of the undersigned at the Annual Meeting of
Shareholders of INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES on May 20,
1997 at 10:00 a.m., New York City time, and at any adjournment thereof, on
the proposals set forth in the Notice of Meeting dated March 19, 1997 as
follows:
THIS PROXY IS SOLICITED BY THE TRUSTEES. IF NO SPECIFICATION IS MADE ON
THE REVERSE SIDE, THIS PROXY WILL BE VOTED FOR ALL NOMINEES FOR TRUSTEE AND
FOR THE PROPOSALS.
IMPORTANT: PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD IN THE ENCLOSED
ENVELOPE SO THAT YOUR VOTE ON ALL MATTERS MAY BE COUNTED.
(Continued, and to be dated and signed on reverse side.)
<PAGE>
PLEASE MARK BOXES [ ] OR [X] IN BLUE OR BLACK INK. PREFERRED SHARES
1. ELECTION OF TRUSTEES: [ ] OR THE NOMINEES [ ] WITHHOLD AUTHORITY
(except as marked to (to vote for all
the contrary below) nominees listed
below)
Edwin J. Garn, Wayne E. Hedien, Michael E. Nugent, Philip J. Purcell
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE WRITE
THAT NOMINEE'S NAME ON THE SPACE PROVIDED BELOW.)
- -----------------------------------------------------------------------------
ELECTION OF PREFERRED TRUSTEE: [ ] OR THE NOMINEES [ ] WITHHOLD AUTHORITY
(except as marked to (to vote for all
the contrary below) nominees listed
below)
John R. Haire
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE WRITE
THAT NOMINEE'S NAME ON THE SPACE PROVIDED BELOW.)
- -----------------------------------------------------------------------------
2. APPROVAL OF NEW INVESTMENT MANAGEMENT AGREEMENT:
FOR [ ] AGAINST [ ] ABSTAIN [ ]
3. RATIFICATION OF APPOINTMENT OF PRICE WATERHOUSE LLP AS INDEPENDENT
ACCOUNTANTS:
FOR [ ] AGAINST [ ] ABSTAIN [ ]
100
and in their discretion in the transaction of any other business which may
properly come before the meeting.
Please sign personally. If the
shares are registered in more
than one name, each joint owner
or each fiduciary should sign
personally. Only authorized
officers should sign for
corporations.
Dated
---------------------------------
---------------------------------
Signature
---------------------------------
Signature
<PAGE>
INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
PROXY
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES
The undersigned hereby appoints Robert M. Scanlan, Barry Fink, and Joseph J.
McAlinden, or any of them, proxies, each with the power of substitution, to
vote on behalf of the undersigned at the Annual Meeting of Shareholders of
InterCapital New York Quality Municipal Securities on May 20, 1997, at 10:00
a.m., New York City time, and at any adjournment thereof, on the proposals set
forth in the Notice of Meeting dated March 19, 1997 as follows:
(Continued on reverse side)
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN
BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE
VOTED "FOR" THE TRUSTEES AND THE PROPOSALS SET FORTH ON THE REVERSE HEREOF
AND AS RECOMMENDED BY THE BOARD OF TRUSTEES.
IMPORTANT--THIS PROXY MUST BE SIGNED AND DATED ON THE REVERSE SIDE.
<PAGE>
[X] PLEASE MARK VOTES
AS IN THE EXAMPLE
USING BLACK OR
BLUE INK
FOR ALL
FOR WITHHOLD EXCEPT
1. Election of four (4) Trustees: [ ] [ ] [ ]
Edwin J. Garn, Wayne E. Hedien,
Michael E. Nugent, Philip J. Purcell
IF YOU WISH TO WITHHOLD AUTHORITY FOR ANY PARTICULAR NOMINEE, MARK THE
"FOR ALL EXCEPT" BOX AND STRIKE A LINE THROUGH THE NOMINEE'S NAME.
FOR AGAINST ABSTAIN
2. Approval of New Investment Management [ ] [ ] [ ]
Agreement with Dean Witter InterCapital
Inc. in connection with proposed merger.
FOR AGAINST ABSTAIN
3. Ratification of appointment of Price [ ] [ ] [ ]
Waterhouse LLP as independent accoun-
tants.
Please make sure to sign and date
this Proxy using black or blue ink. Date
-------------------
- --------------------------------- ---------------------------------------
- --------------------------------- ---------------------------------------
Shareholder sign in the box above Co-Owner (if any) sign in the box above
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
PLEASE DETACH AT PERFORATION
INTERCAPITAL NEW YORK QUALITY MUNICIPAL SECURITIES
IMPORTANT
PLEASE SEND IN YOUR PROXY............TODAY!
YOU ARE URGED TO DATE AND SIGN THE ATTACHED PROXY AND RETURN IT PROMPTLY IN
THE ENCLOSED ENVELOPE. THIS WILL HELP SAVE THE EXPENSE OF FOLLOW-UP LETTERS TO
SHAREHOLDERS WHO HAVE NOT RESPONDED.
