<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES TWO WORLD TRADE CENTER,
NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS
DEAR SHAREHOLDER:
Fixed-income market conditions have steadily improved since late last year.
Bonds began to rally in November 1994 on signs of slower economic growth in the
wake of a progressively tighter Federal Reserve monetary policy. The recent
trend toward lower long-term interest rates is in marked contrast to most of
1994 when rapidly rising rates created one of the most severe bear markets for
bonds in recent history.
MUNICIPAL MARKET CONDITIONS
Long-term municipal bond yields, as tracked by THE BOND BUYER Revenue Bond
Index*, dropped from a high of 7.37 percent in November 1994 to 6.29 percent at
the end of April 1995. This 108 basis point decline in yield corresponded to a
13 percent price increase for 30-year municipal bonds. Short-term municipal
interest rates remained basically unchanged over the past six months. Thus, the
yield spread or difference between short-term and long-term municipal bond
interest rates narrowed as long-term rates declined.
The seasonal demand for municipals in December more than offset the uncertainty
caused by the Orange County, California bankruptcy filing. The market
anticipated cash inflows from the reinvestment of coupons and the proceeds from
bond calls and maturities in January at a time of scarce supply. Tax-exempt
bonds outperformed U.S. Treasury bonds through February 1995. The ratio of the
Revenue Bond Index yield to the 30-year U.S. Treasury yield fell from a high of
92 percent in November to 84 percent at the end of February. A declining ratio
means that municipal bond prices have been stronger than U.S. Treasury prices.
Tax reform proposals that advanced the concept of a flat tax were partially
responsible for municipals underperforming Treasuries in March and April. By the
end of April, the Revenue/Treasury yield ratio had risen to 86 percent.
- ------------------------
* THE BOND BUYER Revenue Bond Index is an arithmetic average of the yields of 25
selected municipal revenue bonds with 30-year maturities. Credit ratings of
these bonds range from Aa1 to Baa1 by Moody's and AA+ to A- by Standard &
Poor's.
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
LETTER TO THE SHAREHOLDERS, CONTINUED
The pace of new-issue underwriting over the first four months of 1995 was 40
percent below the same period last year. With bond maturities and calls
estimated to exceed new issues coming to market in 1995, the outstanding supply
of municipal securities is expected to decline. This imbalance should continue
to strengthen municipal market conditions.
PERFORMANCE
The net asset value (NAV) of InterCapital Insured California Municipal
Securities (ICS) increased from $13.15 to $14.15 per share during the six-month
period ended April 30, 1995. Based on this NAV change plus reinvestment of
tax-free dividends totaling $0.36 per share, the Trust's total NAV return for
the period was 10.87 percent. Concurrently, the Trust's market price on the New
York Stock Exchange rose from $11.00 to $12.25 per share. Based on this stock
price change and reinvestment of dividends, the Trust's total market return for
the period was 14.74 percent. The Trust began the period trading at a 16.3
percent discount to NAV and closed at a 13.4 percent discount. The monthly
dividend was maintained at $0.06 per share. At the end of the period, the Trust
had undistributed net investment income of $0.08 per share available for future
distributions, versus $0.06 per share on October 31, 1994. This dividend reserve
or "cushion" helps sustain the Trust's current monthly dividend.
PORTFOLIO STRUCTURE
As of April 30, 1995, ICS's long-term investments were diversified among 10
municipal sectors and 24 issuers. The three largest sectors -- tax allocation,
hospital and water & sewer -- represented 54 percent of net assets. The average
maturity and call protection of the Trust's long-term holdings were 25 years,
and 8 years, respectively. At the end of the period, the Trust net assets
totaled approximately $62 million.
Each position in the portfolio was backed by bond insurers rated Aaa by Moody's
Investors Service, Inc. and/or AAA by Standard & Poor's Corp. Municipal bond
insurance supports timely payment of principal and interest. As of April 30,
1995, the distribution of municipal bond insurers was:
<TABLE>
<CAPTION>
MUNICIPAL BOND INSURANCE PERCENT
- ------------------------------------------------------------------------------------------------------------- -----------
<S> <C>
AMBAC Indemnity Corporation (AMBAC).......................................................................... 28%
Capital Guaranty Insurance Company (CGIC).................................................................... 5
College Construction Loan Insurance Association (Connie Lee)................................................. 2
Financial Guaranty Insurance Company (FGIC).................................................................. 12
Financial Security Assurance Inc. (FSA)...................................................................... 8
Municipal Bond Investors Assurance Corporation (MBIA)........................................................ 45
</TABLE>
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
LETTER TO THE SHAREHOLDERS, CONTINUED
LOOKING AHEAD
Slower economic growth in 1995 and the extent of the Federal Reserve Board's
previous interest rate moves have improved bond market expectations. Investor
demand for municipal securities should also be sustained by significant bond
maturities, calls for redemption and diminished new-issue supply. Market
conditions and portfolio structure are among the factors that will continue to
determine the Trust's future level of income and influence its stock market
price.
The Trust's procedure for reinvestment of all dividends and distributions on
common shares is through purchase in the open market. This method helps to
support the market value of the Trust's shares. In addition, we would like to
remind you that the Trustees have approved a procedure whereby the Trust, when
appropriate, may purchase shares in the open market or in privately negotiated
transactions at a price not above market value or net asset value, whichever is
lower at the time of purchase. During the six-month period ended April 30, 1995,
the Trust purchased 119,900 shares of common stock at a weighted average
discount of 12.3 percent.
We appreciate your ongoing support of InterCapital Insured California Municipal
Securities and look forward to continuing to serve your investment needs.
Very truly yours,
[SIG]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA EXEMPT MUNICIPAL BONDS (96.9%)
GENERAL OBLIGATION (8.5%)
$ 3,000 California, Var Purpose 03/01/94 (FSA).......... 5.50 % 03/01/20 $ 2,721,210
3,000 Moulton - Niguel Water District, 1993 Refg
(MBIA).......................................... 5.00 09/01/19 2,514,150
--------------
- -----------
5,235,360
6,000
--------------
- -----------
EDUCATIONAL FACILITIES REVENUE (2.4%)
1,500 California Educational Facilities Authority,
National University Ser 1994 (Connie Lee)....... 6.20 05/01/21 1,458,495
--------------
- -----------
ELECTRIC REVENUE (7.2%)
1,500 Anaheim Public Financing Authority, San Juan 2nd
Ser (FGIC)...................................... 5.75 10/01/22 1,411,425
3,000 Sacramento Municipal Utility District, 1992 Ser
B (MBIA)........................................ 6.375 08/15/22 3,038,430
--------------
- -----------
4,449,855
4,500
--------------
- -----------
HOSPITAL REVENUE (16.0%)
3,000 Anaheim, Anaheim Memorial Hospital Assn COPs
(AMBAC)......................................... 5.125 05/15/20 2,585,640
3,000 California Health Facilities Financing
Authority, Catholic Healthcare West Ser 1994 B
(AMBAC)......................................... 5.00 07/01/21 2,522,940
3,000 California Statewide Communities Development
Authority, Sharp Health Care Obligated Group
COPs (MBIA)..................................... 6.00 08/15/24 2,899,410
2,000 San Mateo County Joint Powers Financing
Authority, San Mateo County Health Center 1994
Ser A (FSA)..................................... 5.75 07/15/22 1,864,800
--------------
- -----------
9,872,790
11,000
--------------
- -----------
MORTGAGE REVENUE - MULTI-FAMILY (4.9%)
3,000 Los Angeles Community Redevelopment Agency, 1994
Ser A (AMBAC)................................... 6.45 07/01/17 3,040,170
--------------
- -----------
PUBLIC FACILITIES REVENUE (3.9%)
1,000 Glendale Unified School District,
1994 Ser A COPs (AMBAC)......................... 6.00 03/01/19 972,740
1,570 Los Angeles Convention & Exhibit Center
Authority, 1993 Refg Ser A (MBIA)............... 5.375 08/15/18 1,414,868
--------------
- -----------
2,387,608
2,570
--------------
- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TAX ALLOCATION (24.1%)
$ 3,000 Bay Area Government Association,
Pool 1994 Ser A (CGIC).......................... 6.00 % 12/15/24 $ 2,891,280
2,000 Brea Redevelopment Agency, Redev Proj AB 1993
Refg Ser (MBIA)................................. 5.75 08/01/23 1,877,940
2,000 Cerritos Public Finance Authority, Los Coyotes
Redev Ser 1993 A (AMBAC)........................ 5.75 11/01/22 1,879,360
3,000 Corona Redevelopment Agency, Area A 1994 Refg
Ser A (FGIC).................................... 6.25 09/01/13 3,041,010
3,000 Pittsburg Redevelopment Agency, Los Medanos Refg
Ser 1993 A (AMBAC).............................. 5.00 08/01/17 2,568,180
3,000 Yorba Linda Redevelopment Agency, Ser 1993 A
(MBIA).......................................... 5.25 09/01/23 2,614,290
--------------
- -----------
14,872,060
16,000
--------------
- -----------
TRANSPORTATION FACILITIES REVENUE (11.3%)
3,000 Los Angeles County Transportation Commission,
Second Sr Ser 1992 A (MBIA)..................... 6.00 07/01/23 2,912,460
San Francisco Airports Commission, San Francisco
Intl Airport
2,000 Second Ser Refg Issue 4 (MBIA)................ 6.00 05/01/20 1,937,120
2,000 Second Ser Refg Issue 2 (MBIA)................ 6.75 05/01/20 2,107,000
--------------
- -----------
6,956,580
7,000
--------------
- -----------
WATER & SEWER REVENUE (13.9%)
3,000 Central Coast Water Authority, Ser 1992
(AMBAC)......................................... 6.60 10/01/22 3,114,840
2,900 Garden Grove Public Financing Authority, Ser
1993 (FGIC)..................................... 5.50 12/15/23 2,625,718
3,000 Los Angeles, Wastewater Refg Ser 1993 A
(MBIA).......................................... 5.70 06/01/20 2,806,500
--------------
- -----------
8,547,058
8,900
--------------
- -----------
OTHER REVENUE (4.7%)
3,000 South Orange County Public Financing District
#88-1, 1994 Ser A (MBIA)........................ 6.00 09/01/18 2,904,600
--------------
- -----------
TOTAL CALIFORNIA EXEMPT MUNICIPAL BONDS
63,470 (IDENTIFIED COST $59,883,177)...........................................
59,724,576
--------------
- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA EXEMPT SHORT-TERM MUNICIPAL OBLIGATION (1.3%)
$ 800 Newport Beach, Hoag Memorial Hospital
Presbyterian Ser 1992 (Tender 05/01/95)
(Identified Cost $800,000)...................... 5.20%* 10/01/22 $ 800,000
--------------
- -----------
$ 64,270 TOTAL INVESTMENTS
(IDENTIFIED COST $60,683,177) (A)............ 98.2% 60,524,576
- -----------
- -----------
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES.................................. 1.8 1,105,497
----- -----------
NET ASSETS................................... 100.0% $61,630,073
----- -----------
----- -----------
<FN>
- ---------------------
Bond Insurance:
AMBAC AMBAC Indemnity Corporation.
CGIC Capital Guaranty Insurance Company.
Connie Lee Connie Lee Insurance Company.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
COPs Certificates of Participation.
* Variable or floating rate. Coupon rate shown reflects current rate.
(a) The aggregate cost for federal income tax purposes is $60,683,177; the
aggregate gross unrealized appreciation is $556,327 and the aggregate
gross unrealized depreciation is $714,928, resulting in net unrealized
depreciation of $158,601.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $60,683,177)............................. $60,524,576
Cash........................................................ 52,968
Interest receivable......................................... 1,043,150
Deferred organizational expenses............................ 30,666
Prepaid expenses and other assets........................... 45,297
-----------
TOTAL ASSETS........................................... 61,696,657
-----------
LIABILITIES:
Payable for:
Common shares of beneficial interest repurchased........ 36,840
Investment management fee............................... 18,135
Accrued expenses and other payables......................... 11,609
-----------
TOTAL LIABILITIES...................................... 66,584
-----------
NET ASSETS:
Preferred shares of beneficial interest, (1,000,000 shares
authorized of non-participating $.01 par value, none
issued)................................................... --
-----------
Common shares of beneficial interest, (unlimited shares
authorized of $.01 par value, 4,354,213 shares
outstanding).............................................. 61,457,706
Net unrealized depreciation................................. (158,601)
Accumulated undistributed net investment income............. 330,968
-----------
NET ASSETS............................................. $61,630,073
-----------
-----------
NET ASSET VALUE PER COMMON SHARE,
($61,630,073 DIVIDED BY 4,354,213 COMMON SHARES
OUTSTANDING)..............................................
$14.15
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME............................................. $1,858,717
----------
EXPENSES
Investment management fee................................... 103,953
Professional fees........................................... 22,242
Shareholder reports and notices............................. 21,491
Trustees' fees and expenses................................. 10,623
Transfer agent fees and expenses............................ 9,955
Registration fees........................................... 8,289
Organizational expenses..................................... 3,966
Other....................................................... 4,297
----------
TOTAL EXPENSES......................................... 184,816
----------
NET INVESTMENT INCOME.................................. 1,673,901
NET CHANGE IN UNREALIZED DEPRECIATION....................... 4,039,914
----------
NET INCREASE................................................ $5,713,815
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE PERIOD
APRIL 30, 1995 FEBRUARY 28, 1994* THROUGH
(UNAUDITED) OCTOBER 31, 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................................... $ 1,673,901 $ 1,881,751
Net change in unrealized depreciation....................... 4,039,914 (4,198,515)
------------------ ------------
NET INCREASE (DECREASE)................................ 5,713,815 (2,316,764)
------------------ ------------
Dividends to common shareholders from net investment
income.................................................... (1,584,712) (1,639,972)
Net increase (decrease) from transactions in shares of
beneficial interest....................................... (1,321,398) 62,679,095
------------------ ------------
TOTAL INCREASE......................................... 2,807,705 58,722,359
NET ASSETS:
Beginning of period......................................... 58,822,368 100,009
------------------ ------------
END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$330,968 AND $241,779, RESPECTIVELY).................... $61,630,073 $58,822,368
------------------ ------------
------------------ ------------
<FN>
- ---------------------
* Commencement of operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED)
1. ORGANIZATION AND ACCOUNTING POLICIES
InterCapital Insured California Municipal Securities (the "Trust") is registered
under the Investment Company Act of 1940, as amended, as a diversified,
closed-end management investment company. The Trust was organized as a
Massachusetts business trust on October 14, 1993 and had no operations other
than those relating to organizational matters and the issuance of 7,113 common
shares of beneficial interest to Dean Witter InterCapital Inc. (the "Investment
Manager"). The Trust commenced operations on February 28, 1994.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- Portfolio securities are valued for the Trust by
an outside independent pricing service approved by the Trustees. The pricing
service has informed the Trust that in valuing the Trust'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
Trust'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. Short-term debt
securities having a maturity date of more than sixty days at time of purchase
are valued on a mark-to-market basis until sixty days prior to maturity and
thereafter at amortized cost based on their value on the 61st day. Short-term
debt securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
The Trust amortizes premiums and accretes discounts on securities purchased over
the life of the respective securities. Interest income is accrued daily except
where collection is not expected.
C. FEDERAL INCOME TAX STATUS -- It is the Trust'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 nontaxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Trust records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
investment income and net realized capital gains are determined in accordance
with federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they exceed
net investment income and net realized capital gains for tax purposes, they are
reported as distributions of paid-in-capital.
E. ORGANIZATIONAL EXPENSES AND OFFERING COSTS -- The Investment Manager paid the
organizational expenses and offering costs of the Trust's common shares in the
amounts of $40,000 and $286,877, respectively. The organizational expenses have
been deferred and are being amortized by the straight-line method over a period
not to exceed five years from the commencement of operations. Offering costs
were charged to capital at the time of issuance of the Trust's common shares.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, the Trust pays its Investment
Manager a management fee, calculated weekly and payable monthly, by applying the
annual rate of 0.35% to the Trust's average weekly net assets.
Under the terms of the Agreement, in addition to managing the Trust's
investments, the Investment Manager maintains certain of the Trust'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 Trust 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 Trust.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Trust's transfer agent. At April 30, 1995, the Trust had transfer agent fees and
expenses payable of approximately $2,000.
4. PREFERRED SHARES OF BENEFICIAL INTEREST
The Trust is authorized to issue up to 1,000,000 non-participating preferred
shares of beneficial interest having a par value of $.01 per share, in one or
more series, with rights as determined by the
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
Trustees, without approval of the common shareholders. The preferred shares have
a liquidation value of $50,000 per share plus the redemption premium, if any,
plus accumulated but unpaid dividends, whether or not declared, thereon to the
date of distribution. The Trust may redeem such shares, in whole or in part, at
the original purchase price of $50,000 per share plus accumulated but unpaid
dividends, whether or not declared, thereon to the date of redemption.
Upon issuance, the Trust will be subject to certain restrictions relating to the
preferred shares. Failure to comply with these restrictions could preclude the
Trust from declaring any distributions to common shareholders or purchasing
common shares and/or could trigger the mandatory redemption of preferred shares
at liquidation value.
The preferred shares, entitled to one vote per share, generally vote with the
common shares but vote separately as a class to elect two Trustees and on any
matters affecting the rights of the preferred shares.
5. COMMON SHARES OF BENEFICIAL INTEREST
Transactions in common shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CAPITAL
PAID IN
PAR EXCESS OF
SHARES VALUE PAR VALUE
----------- -------------- -----------
<S> <C> <C> <C>
Balance (Note 1)................................................. 7,113 $ 71 $ 99,938
Shares issued at close of public offering on February 28,
1994*........................................................... 4,500,000 45,000 62,865,000
Shares issued on April 7, 1994 to cover over-allotment........... 75,000 750 1,053,750
Treasury shares purchased and retired (weighted average discount
13.33%)**....................................................... (108,000) (1,080) (1,284,325)
----------- ------- -----------
Balance, October 31, 1994........................................ 4,474,113 44,741 62,734,363
Adjustments to estimated offering costs associated with the
initial public offering of the common shares.................... -- -- 73,123
Treasury shares purchased and retired (weighted average discount
12.26%)**....................................................... (119,900) (1,199) (1,393,322)
----------- ------- -----------
Balance, April 30, 1995.......................................... 4,354,213 $ 43,542 $61,414,164
----------- ------- -----------
----------- ------- -----------
<FN>
- ---------------------
* Net of estimated offering costs of $360,000.
** The Trustees have voted to retire the shares purchased.
</TABLE>
6. DIVIDENDS TO COMMON SHAREHOLDERS
The Trust has declared the following dividends from net investment income:
<TABLE>
<CAPTION>
DECLARATION AMOUNT RECORD PAYABLE
DATE PER SHARE DATE DATE
----------- -------------- ----------- ------------
<S> <C> <C> <C>
April 25,
1995 $ 0.06 May 5, 1995 May 19, 1995
June 6, June 16, June 30,
1995 0.06 1995 1995
</TABLE>
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1995 (UNAUDITED) CONTINUED
7. SELECTED QUARTERLY FINANCIAL DATA
<TABLE>
<CAPTION>
QUARTERS ENDED
-----------------------------------------------------------
4/30/95 1/31/95
---------------------------- ----------------------------
TOTAL* PER SHARE TOTAL* PER SHARE
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Total investment income.......... $ 915 $ 0.21 $ 944 $ 0.21
Net investment income............ 821 0.19 853 0.19
Net unrealized gain.............. 1,513 0.35 2,527 0.61
</TABLE>
<TABLE>
<CAPTION>
QUARTERS ENDED
----------------------------------------------------------------------------------------
10/31/94 7/31/94 4/30/94+
---------------------------- ---------------------------- --------------------------
TOTAL* PER SHARE TOTAL* PER SHARE TOTAL* PER SHARE
----------- -------------- ----------- -------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Total investment income.......... $ 950 $ 0.21 $ 901 $ 0.19 $ 307 $ 0.07
Net investment income............ 848 0.19 794 0.17 240 0.05
Net unrealized gain (loss)....... (4,320) (0.92) 867 0.20 (746) (0.16)
<FN>
- ---------------------
* Totals expressed in thousands.
+ For the period February 28, 1994 (commencement of operations) through April
30, 1994.
</TABLE>
<PAGE>
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a common share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
FEBRUARY 28,
FOR THE SIX 1994*
MONTHS ENDED THROUGH
APRIL 30, 1995** OCTOBER 31,
(UNAUDITED) 1994**
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 13.15 $ 14.06
------ ------
Net investment income................................................. 0.38 0.41
Net unrealized gain (loss)............................................ 0.96 (0.88)
------ ------
Total from investment operations...................................... 1.34 (0.47)
------ ------
Dividends from net investment income.................................. (0.36) (0.36)
Offering costs charged against capital................................ 0.02 (0.08)
------ ------
Net asset value, end of period........................................ $ 14.15 $ 13.15
------ ------
------ ------
Market value, end of period........................................... $ 12.25 $ 11.00
------ ------
------ ------
TOTAL INVESTMENT RETURN+.............................................. 14.74%(1) (24.55)%(1)
RATIOS TO AVERAGE NET ASSETS:
Total expenses........................................................ 0.62%(2) 0.65%(2)
Net investment income................................................. 5.64%(2) 4.45%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $61,630 $58,822
Portfolio turnover rate............................................... 0% 0%
<FN>
- ---------------------
* Commencement of operations.
** The per share amounts were computed using an average number of shares
outstanding during the period.
+ Total investment return is based upon the current market value on the last
day of each period reported. Dividends and distributions are assumed to be
reinvested at the prices obtained under the Trust's dividend reinvestment
plan. Total investment return does not reflect sales charges or brokerage
commissions.
(1) Not annualized.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
THE FINANCIAL STATEMENTS INCLUDED HEREIN HAVE BEEN TAKEN FROM THE RECORDS OF THE
TRUST WITHOUT EXAMINATION BY THE INDEPENDENT ACCOUNTANTS AND ACCORDINGLY, THEY
DO NOT EXPRESS AN OPINION THEREON.
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
- ---------------------------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
- ---------------------------------------------
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
James F. Willison
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
INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES
SEMIANNUAL REPORT
APRIL 30, 1995
