<PAGE>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
Two World Trade Center
New York, New York 10048
Dear Shareholder:
- - - --------------------------------------------------------------------------------
Strong economic growth in the fourth quarter of 1993 and a shift in Federal
Reserve Board monetary policy during the first half of 1994 resulted in the
sharpest increase in interest rates in more than six years. At the beginning of
the year, market concerns about inflation developed as the economy approached
full employment and commodity prices moved upward. The Federal Reserve Board
responded by tightening monetary policy. Since early February, the central bank
has raised the federal-funds rate-the interest rate banks charge each other for
overnight loans-from 3.00 percent to 4.75 percent in five separate moves.
Between May and August, the discount rate-the interest rate the Federal Reserve
charges member banks for loans-increased 100 basis points to 4.00 percent.
During the six-month period ended September 30, 1994, intermediate-term
municipal bond yields, as measured by 10-year AA-rated general obligation bonds,
rose 20 basis points from 5.40 percent to 5.60 percent. This increase followed a
95 basis point jump in yields during February and March from 4.45 percent to
5.40 percent, precipitated by the Federal Reserve Board's initial tightening
move. The total yield change of 115 basis points was equivalent to an 8.5
percent decline on a 10-year bond with a 4.45 percent coupon.
The municipal market continues to be influenced by supply and demand
conditions. New-issue underwriting totaled a record $290 billion in 1993. The
pace of new-issue activity over the first nine months of 1994, however, slowed
44 percent. The estimated issuance for 1994 is $160 billion. By way of
comparison, municipal bond maturities and calls for redemption are expected to
reach $190 billion, reducing the amount of debt outstanding.
PERFORMANCE
For the six-month period ended September 30, 1994, Dean Witter Limited Term
Municipal Trust's total return was 0.31 percent. This return is based on a
change in net asset value from $9.61 per share on March 31, 1994, to $9.43 on
September 30, 1994, and includes reinvestment of income dividends totaling $0.21
per share. The Lehman Brothers 10-year Municipal Bond Index recorded a total
return of 2.17 percent. As of September 30, 1994, the Fund's 30-day SEC yield
was 4.60 percent and its distribution rate was 4.43 percent.
PORTFOLIO STRUCTURE
At the end of the period under review, the portfolio was diversified among
15 municipal sectors and 58 separate issuers. The three largest municipal
sectors at the end of the period were: hospital revenue, public facilities
revenue and general obligation. These sectors represented 37 percent of the
portfolio. Bonds subject to the alternative minimum tax (AMT) accounted for 12
percent of net assets. At the end of the period the Fund had net assets in
excess of $121 million.
Looking Ahead
A continuation of low new-issue supply coupled with significant calls and
maturities should help support municipal bond values, as well as sustain
investor demand for municipal securities. However, the overall direction of
interest rates will primarily be determined by the strength of the economy, the
trend of inflation and the Federal Reserve Board's response to economic
conditions. The level of interest rates and bond redemption activity are the key
factors expected to influence the Fund's future results.
We appreciate your support of Dean Witter Limited Term Municipal Trust and
look forward to continuing to serve your investment needs.
Very truly yours,
/S/ C. Fiumfreddo
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
<TABLE><CAPTION>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS September 30, 1994 (unaudited)
- - - --------------------------------------------------------------------------------
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
--------- ----- --------- -------
<S> <C> <C> <C>
MUNICIPAL BONDS (88.4%)
GENERAL OBLIGATION (11.9%)
$2,000 Wilmington, Delaware,
Refg Ser 1993 B (FGIC Insured)....... 4.60% 7/ 1/04 $ 1,789,880
2,000 District of Columbia, Refg Ser 1994
A (MBIA Insured) .................... 4.95 6/ 1/05 1,803,900
1,000 Honolulu, Hawaii, Refg Ser 1993 B ... 5.00 10/ 1/03 955,290
1,400 Chicago, Illinois, Ser 1993
(FGIC Insured)....................... 5.10 1/ 1/05 1,309,504
2,000 Rosemont, Illinois, Ser 1993 B ...... 5.30 12/ 1/04 1,920,840
3,000 Massachusetts, Refg Ser 1993 C ...... 4.80 8/ 1/03 2,771,130
3,000 New York City, New York, Ser 1992 A . 6.10 8/ 1/02 2,999,640
1,000 Massillon City School District,
Ohio, Refg Ser 1994
(AMBAC Insured) ..................... 4.70 12/ 1/05 882,520
- - - ------- ----------
15,400 14,432,704
- - - ------- ----------
EDUCATIONAL FACILITIES REVENUE (8.1%)
1,500 University of Delaware, Ser 1993 ...... 4.90 11/ 1/02 1,427,685
1,665 Indiana State University, Ser H
(AMBAC Insured) ....................... 4.70 10/ 1/05 1,460,655
2,000 Massachusetts Health & Educational
Facilities Authority, Boston College
Ser K ................................ 4.80 6/ 1/04 1,839,460
3,400 University of Minnesota, Ser 1993 A 4.80 8/15/03 3,193,790
2,000 New York State Dormitory Authority,
State University Ser 1993 B ........... 5.25 5/15/05 1,863,880
- - - ------- ----------
10,565 9,785,470
- - - ------- ----------
ELECTRIC REVENUE (5.5%)
1,000 Salt River Project Agricultural
Improvement & Power District, Arizona,
Refg Ser 1993 B ....................... 4.75 1/ 1/03 928,710
3,000 San Antonio, Texas, Electric & Gas
Refg Ser 1994 ......................... 4.70 2/ 1/05 2,674,860
1,000 Lewis County Public Utility District #1,
Washington, Cowlitz Falls Hydro
Refg Ser 1993 ......................... 4.875 10/ 1/03 935,160
2,320 Snohomish County Public Utility
District #1, Washington,
Generation Ser 1993 B (AMT) ........... 5.35 1/ 1/05 2,176,786
- - - ------- ----------
7,320 6,715,516
- - - ------- ----------
HOSPITAL REVENUE (13.1%)
2,000 California Statewide Communities
Development Authority, Cedars-Sinai
Medical Center Ser 1993 ............... 4.70 11/ 1/03 1,856,860
1,770 Contra Costa County, California,
Merrithew Memorial Hospital
Ser 1992 COPs ......................... 6.40 11/ 1/05 1,751,911
3,000 Massachusetts Health & Educational
Facilities Authority, Massachusetts
General Hospital Ser G (AMBAC Insured). 4.90 7/ 1/05 2,754,360
1,420 Michigan Hospital Finance Authority,
McLaren Obligated Group Ser 1993 A..... 5.00 10/15/04 1,283,126
2,000 Missouri Health & Educational
Facilities Authority, Barnes-Jewish
Inc/Christian Health Services
Ser 1993 A ............................ 4.75 5/15/05 1,826,080
3,750 Tulsa County Industrial Authority,
Oklahoma, St Francis Hospital
Ser 1993 B (a) ........................ 5.15 12/15/18 3,608,625
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS September 30, 1994 (unaudited)(continued)
- - - --------------------------------------------------------------------------------
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
--------- ----- --------- -------
<S> <C> <C> <C>
$1,000 Murray, Utah, IHC Hospitals Inc
Refg Ser 1993 (AMBAC Insured) ....... 5.00% 5/15/04 $ 938,040
1,000 Fairfax County Industrial Development
Authority, Virginia, Inova Health
System Foundation Refg Ser 1993 A ... 4.70 8/15/04 904,120
1,000 Wisconsin Health & Educational
Facilities Authority, Hospital Sisters
Services Ser 1993 (MBIA Insured)...... 5.00 6/ 1/03 943,390
- - - ------- ----------
16,940 15,866,512
- - - ------- ----------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL
REVENUE (2.3%)
1,000 Massachusetts Industrial Finance Agency,
Eastern Edison Co Refg Ser 1993........ 5.875 8/ 1/08 929,620
2,000 Greenwood, Wisconsin,
Land O'Lakes Inc (AMT) ................. 5.50 9/ 1/03 1,884,100
- - - ------- ----------
3,000 2,813,720
- - - ------- ----------
MORTGAGE REVENUE - MULTI-FAMILY (1.7%)
2,130 Wisconsin Housing & Economic
Development Authority,
Ser 1993 B (AMT) ....................... 5.10 11/ 1/03 2,005,629
- - - ------- ----------
MORTGAGE REVENUE - SINGLE FAMILY (1.5%)
2,000 Connecticut Housing Finance Authority,
1993 Subseries F-1 .................... 4.90 5/15/04 1,875,540
- - - ------- ----------
NURSING & HEALTH RELATED FACILITIES REVENUE (2.1%)
3,000 Ohio Public Facilities Commission,
Mental Health Ser II-93B .............. 4.30 6/ 1/03 2,603,610
- - - ------- ----------
PUBLIC FACILITIES REVENUE (12.2%)
1,875 San Diego Unified School District,
California, Refg Ser 1993 B COPs ...... 4.80 7/ 1/03 1,728,131
3,000 Michigan Building Authority,
Refg Ser 1993 I ....................... 6.50 10/ 1/04 3,181,050
1,400 St Paul Housing & Redevelopment
Authority, Minnesota, Civic Center
Ser 1993 ............................. 4.80 11/ 1/03 1,287,230
2,000 Regional Convention & Sports
Complex Authority, Missouri,
Refg Ser A 1993 ...................... 4.75 8/15/04 1,782,620
1,500 St Louis Municipal Finance Corporation,
Missouri, Refg Ser 1993 A ............ 5.60 7/15/05 1,454,985
2,000 Ohio Building Authority, Correctional
Refg 1994 Ser A ....................... 4.65 10/ 1/04 1,783,840
1,945 Pittsburgh Stadium Authority,
Pennsylvania, Refg Ser 1993
(MBIA Insured) ........................ 4.85 10/ 1/04 1,784,051
2,000 Rhode Island Convention Center Authority,
Refg Ser 1993 B (MBIA Insured)......... 5.00 5/15/05 1,847,340
- - - ------- ----------
15,720 14,849,247
- - - ------- ----------
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS September 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
--------- ----- --------- -------
<S> <C> <C> <C>
RESOURCE RECOVERY REVENUE (1.6%)
$2,0000 Northeast Maryland Waste Disposal
Authority, Montgomery County
Ser 1993 A (AMT) ................... 5.50% 7/ 1/01 $ 1,969,920
- - - ------- ----------
STUDENT LOAN REVENUE (6.7%)
3,000 New England Education Loan Marketing
Corporation, Massachusetts,
Ser 1992 G ........................... 5.20 8/ 1/02 2,856,750
2,000 Montana Higher Education Student
Assistance Corporation, Senior
Ser 1993 B (AMT)...................... 5.10 12/ 1/01 1,944,880
2,000 South Carolina Education Assistance
Authority, Ser 1993 A-1 (AMT) ........ 5.00 9/ 1/03 1,887,040
1,500 Utah Board of Regents,
Ser 1993 B (AMT) ..................... 5.35 11/ 1/03 1,442,505
- - - ------- ----------
8,500 8,131,175
- - - ------- ----------
TAX ALLOCATION REVENUE (4.7%)
1,965 Pleasanton Joint Powers Financing
Authority, California, Reassessment
Ser 1993 A ............................ 5.60 9/ 2/00 1,946,372
2,000 Sacramento Financing Authority,
California, Refg Ser 1993 A
(AMBAC Insured) ....................... 4.85 11/ 1/04 1,847,700
2,000 Santa Maria Redevelopment Agency,
California, Town Center & Westside
Parking Refg Ser 1993 ................. 4.75 6/ 1/03 1,857,040
- - - ------- ----------
5,965 5,651,112
- - - ------- ----------
TRANSPORTATION REVENUE (8.2%)
1,000 Alaska, International Airports Refg
Ser I (MBIA Insured) (AMT) ............ 5.10 10/ 1/03 951,430
1,000 Delaware River & Bay Authority,
Delaware & New Jersey, Ser 1993**...... 4.50 1/ 1/04 886,740
2,000 Washington Metropolitan Area Transit
Authority, District of Columbia Refg
Ser 1993 (FGIC Insured)................ 4.90 1/ 1/05 1,828,840
4,000 Chicago, Illinois, Chicago -
O'Hare Int'l Airport Refg Ser 1993 A... 4.80 1/ 1/05 3,607,560
3,000 Harris County, Texas, Toll Road
Refg Ser 1994(AMBAC) Insured .......... 4.85 8/15/05 2,733,810
- - - ------- ----------
11,000 10,008,380
- - - ------- ----------
WATER & SEWER REVENUE (7.2%)
1,000 Atlanta, Georgia, Water & Sewer
Ser 1993 .............................. 4.50 1/ 1/04 884,150
2,000 Massachusetts Water Resources Authority,
Ser 1993 C ............................ 5.25 12/ 1/06 1,845,560
2,000 New York City Municipal Water
Finance Authority, New York,
Ser 1994 B ............................ 5.125 6/15/04 1,897,820
1,500 Pittsburgh Water & Sewer Authority,
Pennsylvania, Refg Ser 1993 A
(FGIC Insured) ........................ 4.60 9/ 1/03 1,364,235
3,000 Southeastern Public Service Authority,
Virginia, Regional Solid Waste Refg
Ser 1993 A (MBIA Insured)............. 4.70 7/ 1/04 2,721,120
- - - ------- ----------
9,500 8,712,885
- - - ------- ----------
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS September 30, 1994 (unaudited) (continued)
- - - --------------------------------------------------------------------------------
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
--------- ----- --------- -------
<S> <C> <C> <C>
OTHER REVENUE (1.6%)
$ 2,000 Pennsylvania Intergovernmental
Cooperation Authority, Special Tax
Ser 1993 (FGIC Insured) .............. 5.05% 6/15/04 $ 1,883,980
- - - ------- ----------
115,040 TOTAL MUNICIPAL BONDS
(Identified Cost $115,007,968) ..................... 107,305,400
- - - ------- -----------
SHORT-TERM MUNICIPAL OBLIGATION (1.5%)
1,800 Indiana Hospital Equipment Financing
Authority, Ser 1985 (Tender 10/5/94)
(Identified Cost $1,800,000) .......... 3.65* 12/1/15 1,800,000
- - - ------- ----------
$116,840 TOTAL INVESTMENTS
======== (Identified Cost $116,807,968) (b)..... 89.9% 109,105,400
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES ....................... 10.1 12,324,853
------ ----------
NET ASSETS .......................... 100.0% $121,430,253
====== ============
<FN>
- - - ------------
AMT Alternative Minimum Tax
COPs Certificates of Participation
* Variable or floating rate security. Coupon rate shown reflects rate
in effect on September 30, 1994.
** Jointly issued by Delaware and New Jersey.
(a) Mandatory tender 12/15/2003.
(b) The aggregate cost for federal income tax purposes is $116,807,968;
the aggregate gross and net unrealized depreciation is $7,702,568.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
Geographic Summary of Investments
Based on Market Value as a Percent of Net Assets
September 30, 1994 (unaudited)
<S> <C>
Alaska .......... 0.8%
Arizona .......... 0.8
California ....... 9.0
Connecticut ...... 1.5
Delaware ......... 2.6
District of Columbia 3.0
Georgia ........... 0.7
Hawaii ............ 0.8
Illinois .......... 5.6
Indiana ........... 2.7
Maryland .......... 1.6
Massachusetts ..... 10.7
Michigan .......... 3.7
Minnesota ......... 3.7
Missouri .......... 4.2
Montana ........... 1.6
New York .......... 5.6
Ohio .............. 4.3
Oklahoma .......... 3.0
Pennsylvania ...... 4.1
Rhode Island ...... 1.5
South Carolina .... 1.6
Texas ............. 4.5
Utah .............. 2.0
Virginia .......... 3.0
Washington ........ 2.6
Wisconsin ......... 4.0
Joint Issues ...... 0.7
-----
Total ............. 89.9%
=====
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
FINANCIAL STATEMENTS
- - - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1994 (unaudited)
- - - --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $116,807,968) (Note 1) ............ $109,105,400
Cash .................................................. 393,843
Receivable for:
Investments sold .................................... 10,777,954
Interest ........................................... 1,673,981
Shares of beneficial interest sold .................. 188,599
Deferred organizational expenses (Note 1).............. 116,520
Prepaid expenses and other assets .................... 63,628
-------------
Total Assets .................................. 122,319,925
-------------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased .......... 758,044
Investment management fee (Note 2) ................. 53,404
Accrued expenses (Note 3) ............................. 48,026
Dividends to shareholders ............................. 30,198
-------------
Total Liabilities ............................ 889,672
-------------
NET ASSETS:
Paid-in-capital ....................................... 133,762,759
Accumulated net realized loss on investments .......... (4,629,938)
Net unrealized depreciation on investments ............ (7,702,568)
-------------
Net Assets ............................................ $121,430,253
============
Net Asset Value Per Share, 12,880,680
shares outstanding (unlimited
shares authorized of $.01 par value) ............... $9.43
=====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the six months
ended September 30, 1994 (unaudited)
- - - --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income ..................................... $3,606,036
----------
Expenses
Investment management fee (Note 2)................. 356,046
Professional fees ................................. 48,191
Transfer agent fees and expenses (Note 3) ......... 34,770
Registration fees ................................. 30,599
Organizational expenses (Note 1)................... 15,166
Trustees' fees and expenses (Note 3) .............. 13,437
Shareholder reports and notices ................... 3,532
Other ............................................. 7,319
----------
Total Expenses ............................... 509,060
----------
Net Investment Income ..................... 3,096,976
----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (Note 1):
Net realized loss on investments .................. (4,546,491)
Net change in unrealized depreciation on
investments .................................... 1,723,131
----------
Net Loss on Investments ...................... (2,823,360)
----------
Net Increase in Net Assets
Resulting from Operations .............. $ 273,616
===========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- - - --------------------------------------------------------------------------------
For the For the period
six months ended July 12, 1993 through
September 30, 1994 March 31, 1994
(unaudited) (Note 1)
------------------ ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .............. $ 3,096,976 $ 3,848,943
Net realized loss on investments ... (4,546,491) (83,447)
Net change in unrealized depreciation
on investments ..................... 1,723,131 (9,425,699)
------------ -------------
Net increase (decrease) in net
assets resulting from operations ..... 273,616 (5,660,203)
Dividends to shareholders from net
investment income ................ (3,096,976) (3,848,943)
Net increase (decrease) from
transactions in shares of
beneficial interest (Note 4)....... (46,335,795) 179,998,554
------------ -------------
Total increase (decrease) ........... (49,159,155) 170,489,408
NET ASSETS:
Beginning of period .................... 170,589,408 100,000
------------ -------------
End of period ......................... $121,430,253 $170,589,408
============= =============
See Notes to Financial Statements
</TABLE>
<PAGE>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited)
- - - --------------------------------------------------------------------------------
1. Organization and Accounting Policies-Dean Witter Limited Term Municipal
Trust (the "Fund") is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The Fund was
organized as a Massachusetts business trust on February 25, 1993 and had no
operations until July 12, 1993 other than matters relating to the sale of 10,000
shares of beneficial interest for $100,000 to Dean Witter InterCapital Inc. (the
"Investment Manager"). The Fund commenced operations on July 12, 1993.
The following is a summary of significant accounting policies:
A. Valuation of Investments-Portfolio securities are valued for the Fund by
an outside independent pricing service approved by the Trustees. The
pricing service has informed the Fund that in valuing the Fund's portfolio
securities, it uses both a computerized matrix of tax-exempt securities and
evaluations by its staff, in each case based on information concerning
market transactions and quotations from dealers which reflect the bid side
of the market each day. The Fund's portfolio securities are thus valued by
reference to a combination of transactions and quotations for the same or
other securities believed to be comparable in quality, coupon, maturity,
type of issue, call provisions, trading characteristics and other features
deemed to be relevant.
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 on the identified cost
method. The Fund amortizes premiums and discounts on securities purchased
over the life of the respective securities. Interest income is accrued
daily.
C. Federal Income Tax Status-It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable and non-taxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. 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 gains for tax purposes, they
are reported as distributions of paid-in-capital.
E. Organizational Expenses - The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of $154,180 of which
$139,572 was reimbursed by the Fund; the remaining amount of $14,608 was
assumed by the Investment Manager through December 31, 1993. The Fund
deferred the reimbursed expenses which are being amortized by the straight-
line method over a period not to exceed five years from the commencement of
operations.
2. Investment Management Agreement-Pursuant to an Investment Management
Agreement with Dean Witter InterCapital Inc., the Fund pays its Investment
Manager a management fee, accrued daily payable monthly, by applying the annual
rate of 0.50% to the Fund's net assets determined as of the close of each
business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping, and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- - - --------------------------------------------------------------------------------
3. Security Transactions and Transactions with Affiliates-The cost of purchases
and the proceeds from sales of portfolio securities, excluding short-term
investments, for the six months ended September 30, 1994 aggregated $1,700,000
and $55,603,189, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At September 30, 1994, the Fund had transfer agent fees
and expenses payable of approximately $6,000.
Effective January 1, 1994, the Fund adopted an unfunded noncontributory
defined benefit pension plan covering all independent Trustees of the Fund who
will have served as an independent Trustee for at least five years at the time
of retirement. Benefits under this plan are based on years of service and
compensation during the last five years of service. Aggregate pension costs for
the six months ended September 30, 1994, included in Trustees' fees and expenses
in the Statement of Operations amounted to $6,185. At September 30, 1994, the
Fund had an accrued pension liability of $8,967 which is included in accrued
expenses in the Statement of Assets and Liabilities.
4. Shares of Beneficial Interest-Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
For the six months ended For the period July 12, 1993*
September 30, 1994 through March 31, 1994
------------------- -----------------------
<S> <C> <C> <C> <C>
Sold ..................... 4,111,753 $ 39,435,680 30,407,994 $308,424,328
Reinvestment of dividends
and distributions ...... 255,358 2,446,149 301,685 3,050,020
----------- ---------- ----------- ------------
4,367,111 41,881,829 30,709,679 311,474,348
Repurchased ............. (9,233,137) (88,217,624) (12,972,973) (131,475,794)
----------- ------------ ----------- ------------
Net increase (decrease).. (4,866,026) $(46,335,795) 17,736,706 $179,998,554
=========== ============ ========== ===========
</TABLE>
[FN]
_____
* Commencement of operations
5. Federal Income Tax Status-Capital losses incurred after October 31 ("Post-
October losses") within the taxable year are deemed to arise on the first
business day of the Fund's next taxable year. The Fund incurred and will elect
to defer net capital losses of approximately $83,400 during fiscal 1994. To the
extent that these net capital losses are used to offset future capital gains, it
is probable that the gains so offset will not be distributed to shareholders.
For the six months ended September 30, 1994, the Fund incurred approximately
$4,546,000 of net capital losses.
At March 31, 1994, the Fund had temporary book/tax differences primarily
attributable to Post-October losses.
<PAGE>
<TABLE>
DEAN WITTER LIMITED TERM MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS
- - - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<CAPTION>
<S> <C> <C>
For the six For the period
months ended July 12, 1993*
September 30, 1994 through
(unaudited) March 31, 1994
----------- -------------
Per Share Operating Performance:
Net asset value, beginning of period ............ $9.61 $10.00
----- -------
Net investment income ............................ 0.21 0.29
Net realized and unrealized loss on investments... (0.18) (0.39)
----- -------
Total from investment operations ................ 0.03 (0.10)
----- -------
Dividends from net investment income ............ (0.21) (0.29)
----- -------
Net asset value, end of period .................. $9.43 $ 9.61
====== ======
Total Investment Return+ ....................... 0.31%(1) (1.11)%(1)
Ratios/Supplemental Data:
Net assets, end of period (in thousands) ........ $121,430 $170,589
Ratios to average net assets:
Expenses ..................................... 0.71%(2) 0.31%(2)(3)
Net investment income ........................ 4.35%(2) 3.92%(2)(3)
Portfolio turnover rate ......................... 1% 6%
</TABLE>
[FN]
_____
* Commencement of operations.
+ Does not reflect the deduction of sales load.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all of its expenses that were assumed or waived by
the Investment Manager, the above annualized ratios of expenses and net
investment income to average net assets would have been 0.75% and
3.48%, respectively.
<PAGE>
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<PAGE>
TRUSTEES
- - - -------------------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling
OFFICERS
- - - -------------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Katherine H. Stromberg
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
- - - -------------------------------------
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
- - - -------------------------------------
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
- - - -------------------------------------
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the
records of the Fund without examination by the independent accountants
and accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders of
the Fund. For more detailed informatin about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospecuts of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
<PAGE>
DEAN WITTER
LIMITED TERM
MUNICIPAL TRUST
Semiannual Report
September 30, 1994
