<PAGE> 1
DEAN WITTER LIQUID ASSET FUND INC.
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
As of February 28, 1995, Dean Witter Liquid Asset Fund Inc. had assets in
excess of $9.2 billion, up from $8.5 billion six months ago. The portfolio's
annualized net yield for the six-month period ended February 28, 1995 was 4.95
percent. On February 28, 1995, its daily yield was 5.69 percent.
YIELDS ROSE, THEN STABILIZED
From September through December 1994, yields available to the Fund
continued to trend upward, a pattern which had begun in February, 1994. Early in
1995, however, money market yields became more stable and actually declined
moderately for longer maturities as economic data showed some signs of a
possible slowing in the pace of the current expansion. Thus far, it appears that
the Federal Reserve Bank has been successful in staying ahead of possible
inflationary pressures which could arise from an unsustainably rapid pace of
economic activity.
PORTFOLIO COMPOSITION AND STRUCTURE
On February 28, 1995, approximately 83 percent of the Fund's portfolio
consisted of high quality commercial paper, with 9 percent invested in federal
agency and U.S. Treasury obligations, 8 percent invested in short-term notes of
major, financially strong commercial banks and the remaining 1 percent in
bankers' acceptances issued by such institutions.
As of the end of the reporting period, more than 82 percent of the Fund's
investments were due to mature in less than four months. Therefore, the
portfolio is positioned to reflect future changes in the level of money market
rates and maintains a very high degree of liquidity. We have always operated the
Fund in a conservative, straight-forward style never using "structured notes" or
derivatives which fluctuate excessively when interest rates change.
LOOKING AHEAD
The U.S. economy proved to be a powerful engine of growth during 1994,
producing robust job creation. Unemployment in December fell to 5.4 percent, its
lowest level since July, 1990. While it fluctuated up to 5.7 percent for
January, 1995, it returned to 5.4 percent in February. However, some key
economic indicators are now reflecting a moderation in the pace of this economic
expansion. Therefore, we expect the Federal Reserve Board will not have to raise
short-term rates nearly as aggressively nor as much as was the case during 1994.
The Fund continues to serve as a very useful investment for liquidity,
preservation of capital and a yield which will reflect prevailing money market
conditions. We appreciate your ongoing participation in the Dean Witter Liquid
Asset Fund Inc. and we look forward to continuing to serve your investment needs
and objectives.
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO
---------------------------
Charles A. Fiumefreddo
Chairman of the Board
<PAGE> 2
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Annualized
Amount Yield on
(in Description and Date of
thousands) Maturity Date Purchase Value
--------- ------------------------------------------------------- ------------ --------------
<C> <S> <C> <C>
FLOATING RATE NOTE (2.2%)
COMMERCIAL BANK
$ 200,000 PNC Bank, N.A. 04/21/95
(Amortized Cost $199,975,390)........................ 6.02 % $ 199,975,390
--------------
BANKERS' ACCEPTANCES (0.5%)
COMMERCIAL BANKS
32,000 Corestates Bank, N.A. 04/28/95 to 08/14/95............. 6.20 to 6.36 31,462,037
20,000 Mellon Bank, N.A. 04/04/95............................. 6.11 19,885,722
--------------
TOTAL BANKERS' ACCEPTANCES
(AMORTIZED COST $51,347,759)......................... 51,347,759
--------------
COMMERCIAL PAPER (83.7%)
AUTOMOTIVE - FINANCE (16.2%)
440,000 Chrysler Financial Corp. 03/22/95 to 06/12/95.......... 6.14 to 6.39 436,263,014
256,100 Daimler-Benz North America Corp. 04/04/95 to 08/21/95.. 5.72 to 6.10 253,905,225
375,000 Ford Motor Credit Co. 04/05/95 to 05/30/95............. 6.17 to 6.35 370,748,371
437,000 General Motors Acceptance Corp. 03/07/95 to 05/01/95... 5.98 to 6.27 433,961,122
--------------
1,494,877,732
--------------
BANKS - COMMERCIAL (17.7%)
100,000 ABN AMRO N.A. Finance, Inc. 04/21/95................... 6.13 99,152,833
145,000 Barclays U.S. Funding Corp. 04/26/95 to 04/27/95....... 6.27 143,591,183
350,000 Canadian Imperial Holdings, Inc. 04/12/95 to
04/19/95............................................. 6.12 to 6.33 347,293,778
70,000 Commerzbank US Finance Inc. 03/02/95 to 05/03/95....... 6.14 to 6.15 69,779,833
350,000 Dresdner U.S. Finance, Inc. 05/10/95 to 10/05/95....... 6.14 to 6.71 343,530,207
125,000 National Australia Funding (Del) Inc. 03/08/95 to
08/07/95............................................. 5.35 to 6.50 123,480,972
200,000 National Westminster Bancorp Inc. 03/06/95 to
06/22/95............................................. 5.19 to 6.52 197,812,556
100,000 Rabobank USA Financial Corp. 04/03/95.................. 6.32 99,429,833
24,000 Societe Generale N.A. Inc. 04/10/95.................... 6.28 23,835,200
195,000 Toronto-Dominion Holdings (USA) Inc. 03/13/95 to
07/03/95............................................. 5.19 to 6.88 193,141,430
--------------
1,641,047,825
--------------
BANK HOLDING COMPANIES (14.6%)
135,000 BankAmerica Corp. 06/30/95 to 07/12/95................. 6.56 to 6.83 131,790,679
100,000 Chase Manhattan Corp. 03/21/95 to 05/31/95............. 5.74 to 6.25 99,041,272
300,000 Chemical Banking Corp. 03/30/95 to 05/22/95............ 6.14 to 6.35 297,608,403
20,000 Corestates Capital Corp. 03/02/95...................... 5.19 19,997,189
140,000 First Chicago Corp. 04/18/95 to 06/01/95............... 6.15 to 6.54 138,340,222
244,270 First Union Corp. 05/11/95 to 05/12/95................. 6.18 241,324,042
250,000 Morgan (J.P.) & Co., Inc. 03/22/95 to 05/08/95......... 5.74 to 6.20 248,248,958
50,000 NationsBank Corp. 03/20/95............................. 6.28 49,836,917
85,000 PNC Funding Corp. 03/08/95 to 04/17/95................. 5.74 to 5.87 84,595,870
45,000 Republic New York Corp. 07/24/95....................... 6.26 43,894,375
--------------
1,354,677,927
--------------
</TABLE>
<PAGE> 3
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 28, 1995 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Annualized
Amount Yield on
(in Description and Date of
thousands) Maturity Date Purchase Value
--------- ------------------------------------------------------- ------------ --------------
<C> <S> <C> <C>
BROKERAGE (4.1%)
$ 300,000 Goldman Sachs Group L.P. 03/01/95 to 03/23/95.......... 6.24 to 6.30% $ 299,586,889
75,000 Morgan Stanley Group, Inc. 03/06/95 to 03/07/95........ 6.30 74,927,667
--------------
374,514,556
--------------
CANADIAN GOVERNMENT & AGENCY (0.5%)
50,000 Canadian Wheat Board 04/13/95.......................... 6.40 49,625,542
--------------
CHEMICALS (0.1%)
10,000 DuPont (E.I.) De Nemours & Co. 04/18/95................ 6.03 9,920,533
--------------
DRUGS (0.8%)
55,000 Lilly, (Eli) & Co. 05/26/95 to 11/08/95................ 6.37 to 6.66 53,441,550
20,000 Warner-Lambert Co. 03/27/95............................ 5.97 19,914,200
--------------
73,355,750
--------------
ENERGY (0.1%)
15,000 Shell Oil Co. 05/08/95................................. 6.08 14,830,000
--------------
FINANCE - CORPORATE (1.0%)
45,000 Ciesco, L.P. 03/06/95.................................. 6.01 44,962,813
50,000 Corporate Asset Funding Co., Inc. 04/25/95 to
04/28/95............................................. 6.20 49,518,778
--------------
94,481,591
--------------
FINANCE - DIVERSIFIED (15.5%)
315,000 American Express Credit Corp. 03/10/95 to 05/04/95..... 5.99 to 6.14 313,565,443
70,000 Associates Corp. of N.A. 03/13/95 to 05/03/95.......... 6.02 to 6.29 69,419,450
130,000 Avco Financial Services, Inc. 04/10/95 to 04/24/95..... 6.15 to 6.27 129,036,831
135,000 Beneficial Corp. 03/29/95 to 03/30/95.................. 6.33 134,337,197
100,000 C I T Group Holdings Inc. 04/05/95 to 04/10/95......... 6.06 to 6.14 99,371,111
449,000 General Electric Capital Corp. 04/06/95 to 10/30/95.... 6.16 to 7.08 438,953,610
125,000 Heller Financial Inc. 05/24/95 to 07/14/95............. 6.44 122,713,125
125,000 Household Finance Corp. 03/29/95 to 06/23/95........... 6.30 to 6.53 123,631,333
--------------
1,431,028,100
--------------
FINANCE - ENERGY (1.6%)
150,000 Chevron Oil Finance Co. 03/17/95 to 04/06/95........... 5.94 to 6.06 149,268,444
--------------
HEALTH CARE - DIVERSIFIED (3.1%)
12,000 Abbott Laboratories 03/30/95........................... 5.97 11,942,580
100,000 Schering Corp. 04/03/95................................ 5.89 99,472,917
175,000 SmithKline Beecham Corp. 03/13/95 to 03/17/95.......... 5.70 to 5.72 174,619,861
--------------
286,035,358
--------------
INDUSTRIALS (0.5%)
20,000 Emerson Electric Co. 03/21/95.......................... 5.87 19,935,000
20,000 Minnesota Mining & Manufacturing Co. 03/14/95.......... 5.95 19,957,244
10,000 Raytheon Co. 03/20/95.................................. 5.95 9,968,756
--------------
49,861,000
--------------
</TABLE>
<PAGE> 4
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 28, 1995 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Annualized
Amount Yield on
(in Description and Date of
thousands) Maturity Date Purchase Value
--------- ------------------------------------------------------- ------------ --------------
<C> <S> <C> <C>
INSURANCE (0.5%)
$ 45,000 American General Corp. 04/07/95........................ 6.54 % $ 44,703,075
--------------
OFFICE EQUIPMENT (0.2%)
15,000 Xerox Credit Corp. 03/31/95............................ 5.94 14,926,250
--------------
OFFICE EQUIPMENT & SUPPLIES (0.5%)
45,000 IBM Credit Corp. 03/10/95.............................. 5.92 44,933,625
--------------
RETAIL (0.5%)
35,000 Melville Corp. 05/23/95................................ 6.33 34,499,694
10,000 Wal-Mart Stores, Inc. 03/01/95......................... 5.81 10,000,000
--------------
44,499,694
--------------
TELEPHONES (6.2%)
75,000 Ameritech Corp. 04/11/95 to 04/20/95................... 6.19 to 6.25 74,437,986
450,000 AT&T Corp. 03/09/95 to 07/07/95........................ 6.18 to 6.50 445,249,800
50,000 U.S. West Communications Inc. 04/24/95................. 6.19 49,542,500
--------------
569,230,286
--------------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST $7,741,817,288)...................... 7,741,817,288
--------------
SHORT-TERM BANK NOTES (5.9%)
COMMERCIAL BANKS
50,000 First National Bank of Chicago 04/07/95................ 6.06 50,000,000
180,000 Mellon Bank, N.A. 06/29/95 to 08/24/95................. 6.19 to 6.48 180,000,000
320,000 NBD Bank 04/20/95 to 08/29/95.......................... 6.20 to 6.38 320,002,260
--------------
TOTAL SHORT-TERM BANK NOTES
(AMORTIZED COST $550,002,260)........................ 550,002,260
--------------
U.S. GOVERNMENT AGENCIES (8.0%)
65,000 Federal Farm Credit Bank 07/07/95 to 10/31/95.......... 5.84 to 6.32 63,302,000
502,000 Federal Home Loan Banks 04/05/95 to 12/18/95........... 5.41 to 7.22 488,504,563
190,000 Federal National Mortgage Association 03/09/95 to
12/29/95............................................. 5.36 to 6.44 185,527,495
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST $737,334,058)........................ 737,334,058
--------------
U.S. GOVERNMENT OBLIGATIONS (0.9%)
90,000 U.S. Treasury Bills 07/27/95 to 09/21/95
(Amortized Cost $87,636,500)......................... 5.56 to 5.86 87,636,500
--------------
</TABLE>
<PAGE> 5
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 28, 1995 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Annualized
Amount Yield on
(in Description and Date of
thousands) Maturity Date Purchase Value
--------- ------------------------------------------------------- ------------ --------------
<C> <S> <C> <C>
REPURCHASE AGREEMENT (0.1%)
$ 6,846 The Bank of New York due 03/01/95 (dated 02/28/95;
proceeds $6,846,852; collateralized by $915,092 FNMA
Discount Note 7.00% due 10/01/24 valued at $856,814;
$6,770,663 U.S. Treasury Note 4.75% due 9/30/98
valued at $6,418,331) (Identified Cost $6,845,711)... 6.00% $ 6,845,711
--------------
TOTAL INVESTMENTS
(AMORTIZED COST $9,374,958,966)(A)................... 101.3% 9,374,958,966
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS............................................... (1.3) (123,285,879)
------ --------------
NET ASSETS............................................. 100.0% $9,251,673,087
====== ==============
</TABLE>
- ---------------
(a) The aggregate cost for federal income tax is the same.
See Notes to Financial Statements
<PAGE> 6
DEAN WITTER LIQUID ASSET FUND INC.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(amortized cost $9,374,958,966)........ $9,374,958,966
Cash..................................... 89,979
Receivable for:
Interest............................... 3,036,155
Shares of capital stock sold........... 30,906
Prepaid expenses and other assets........ 379,643
--------------
TOTAL ASSETS..................... 9,378,495,649
--------------
LIABILITIES:
Payable for:
Shares of capital stock repurchased.... 121,746,160
Investment management fee.............. 2,017,359
Plan of distribution fee............... 716,807
Accrued expenses and other payables...... 2,342,236
--------------
TOTAL LIABILITIES................ 126,822,562
--------------
NET ASSETS:
Paid-in-capital.......................... 9,251,661,938
Accumulated undistributed net investment
income................................. 11,149
--------------
NET ASSETS....................... $9,251,673,087
==============
NET ASSET VALUE PER SHARE,
9,251,661,938 shares outstanding
(25,000,000,000 shares authorized of
$.01 par value)........................ $1.00
=====
- --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF OPERATIONS For the six months
ended February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME......................... $ 248,625,874
--------------
EXPENSES
Investment management fee.............. 12,604,042
Transfer agent fees and expenses....... 10,591,499
Plan of distribution fee............... 4,075,550
Registration fees...................... 370,152
Shareholder reports and notices........ 200,270
Custodian fees......................... 172,785
Professional fees...................... 37,890
Directors' fees and expenses........... 13,740
Other.................................. 26,817
--------------
TOTAL EXPENSES....................... 28,092,745
--------------
NET INVESTMENT INCOME AND NET
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 220,533,129
==============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
six months ended For the
February 28, 1995 year ended
(unaudited) August 31, 1994
----------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income and net increase in net assets resulting from
operations............................................................... $ 220,533,129 $ 251,436,157
Dividends to shareholders from net investment income....................... (220,578,986) (251,392,461)
Net increase from transactions in shares of capital stock.................. 760,135,844 532,713,400
----------------- ---------------
Total increase........................................................... 760,089,987 532,757,096
NET ASSETS:
Beginning of period.......................................................... 8,491,583,100 7,958,826,004
----------------- ---------------
END OF PERIOD (including undistributed net investment income of
$11,149 and $57,006, respectively)......................................... $ 9,251,673,087 $8,491,583,100
================= ===============
</TABLE>
See Notes to Financial Statements
<PAGE> 7
DEAN WITTER LIQUID ASSET FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter Liquid Asset Fund
Inc. (the "Fund") is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a diversified, open-end management investment
company. The Fund was incorporated in Maryland on September 3, 1974 and
commenced operations on September 22, 1975.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued at
amortized cost, which approximates market value.
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. In determining net investment income, the Fund
amortizes premiums, accretes discounts and accrues interest income
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 income to its
shareholders. Accordingly, no federal income tax provision is required.
D. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions as of the close of each business day.
2. INVESTMENT MANAGEMENT AGREEMENT -- Pursuant to an Investment Management
Agreement with Dean Witter InterCapital Inc. (the "Investment Manager"), the
Fund pays its Investment Manager a management fee, accrued daily and payable
monthly, by applying the following annual rates to the net assets of the Fund
determined as of the close of each business day: 0.50% to the portion of the
daily net assets not exceeding $500 million; 0.425% to the portion of the
daily net assets exceeding $500 million but not exceeding $750 million;
0.375% to the portion of the daily net assets exceeding $750 million but not
exceeding $1 billion; 0.35% to the portion of the daily net assets exceeding
$1 billion but not exceeding $1.35 billion; 0.325% to the portion of the
daily net assets exceeding $1.35 billion but not exceeding $1.75 billion;
0.30% to the portion of the daily net assets exceeding $1.75 billion but not
exceeding $2.15 billion; 0.275% to the portion of the daily net assets
exceeding $2.15 billion but not exceeding $2.5 billion; 0.25% to the portion
of the daily net assets exceeding $2.5 billion but not exceeding $15 billion;
0.249% to the portion of the daily net assets exceeding $15 billion but not
exceeding $17.5 billion; and 0.248% to the portion of the daily net assets
exceeding $17.5 billion.
Under the terms of the Agreement, 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.
3. PLAN OF DISTRIBUTION -- Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager, is the distributor of
the Fund's shares and, in accordance with a Plan of Distribution (the "Plan")
pursuant to Rule 12b-1 under the Act, finances certain expenses in connection
therewith.
Under the Plan, the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Fund, except for expenses
that the Directors determine to reimburse, as described below. The following
activities and services may be provided by the Distributor, Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, its affiliates and other dealers who have
<PAGE> 8
DEAN WITTER LIQUID ASSET FUND INC.
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- --------------------------------------------------------------------------------
entered into selected dealer agreements with the Distributor under the Plan:
(1) compensation to and expenses of DWR's and other selected broker-dealers'
account executives and other employees, including overhead and telephone
expenses; (2) sales incentives and bonuses to sales representatives and to
marketing personnel in connection with promoting sales of the Fund's shares;
(3) expenses incurred in connection with promoting sales of the Fund's
shares; (4) preparing and distributing sales literature; and (5) providing
advertising and promotional activities, including direct mail solicitation
and television, radio, newspaper, magazine and other media advertisements.
The Fund is authorized to reimburse the Distributor for specific
expenses the Distributor incurs or plans to incur in promoting the
distribution of the Fund's shares. The amount of each monthly reimbursement
payment may in no event exceed an amount equal to a payment at the annual
rate of 0.15% of the Fund's average daily net assets during the month.
Expenses incurred by the Distributor pursuant to the Plan in any fiscal year
will not be reimbursed by the Fund through payments accrued in any subsequent
fiscal year. For the six months ended February 28, 1995, the distribution fee
was accrued at the annual rate of 0.09%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and proceeds from sales/maturities of portfolio securities for the
six months ended February 28, 1995 aggregated $21,530,261,242 and
$20,968,064,063, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At February 28, 1995, the Fund had
transfer agent fees and expenses payable of approximately $1,900,000.
The Fund established an unfunded noncontributory defined benefit pension
plan covering all independent Directors of the Fund who will have served as
independent Directors/Trustees 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 February 28, 1995, included in Directors' fees and
expenses in the Statement of Operations amounted to $3,857. At February 28,
1995, the Fund had an accrued pension liability of $47,833 which is included
in accrued expenses in the Statement of Assets and Liabilities.
5. CAPITAL STOCK -- Transactions in capital stock, at $1.00 per share, were
as follows:
<TABLE>
<CAPTION>
For the
six months
ended For the
February 28, year ended
1995 August 31, 1994
--------------- ---------------
<S> <C> <C>
Shares sold......................................... 14,199,017,105 27,170,639,852
Shares issued in reinvestment of dividends.......... 219,897,802 250,596,824
--------------- ---------------
14,418,914,907 27,421,236,676
Shares repurchased.................................. (13,658,779,063) (26,888,523,276)
--------------- ---------------
Net increase........................................ 760,135,844 532,713,400
=============== ===============
</TABLE>
<PAGE> 9
DEAN WITTER LIQUID ASSET FUND INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
For the
six
months
ended
February For the year ended August 31,
28, 1995 ---------------------------------------------------
(unaudited) 1994 1993 1992 1991 1990
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Net investment income............ 0.025 0.030 0.027 0.040 0.064 0.079
Less dividends from net
investment income.............. (0.025) (0.030) (0.027) (0.040) (0.064) (0.079)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN.......... 2.48%(1) 3.07% 2.72% 4.10% 6.61% 8.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in millions).................. $ 9,252 $ 8,492 $ 7,959 $ 9,214 $ 10,811 $ 11,902
Ratios to average net assets:
Expenses....................... 0.63%(2) 0.70% 0.69% 0.67% 0.62% 0.56%
Net investment income.......... 4.95%(2) 3.02% 2.67% 4.03% 6.41% 7.91%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE> 10
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<PAGE> 11
(This page intentionally left blank)
<PAGE> 12
BOARD OF DIRECTORS
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
Jonathan R. Page
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 information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
DEAN WITTER
LIQUID ASSET FUND
[PHOTO]
SEMIANNUAL REPORT
FEBRUARY 28, 1995
