<PAGE> 1
DEAN WITTER LIQUID ASSET FUND INC. Two World Trade Center, New York, New York
10048
LETTER TO THE SHAREHOLDERS February 29, 1996
DEAR SHAREHOLDER:
As of February 29, 1996, Dean Witter Liquid Asset Fund Inc. had assets in excess
of $11.2 billion, up from $10.4 billion on August 31, 1995 and $9.2 billion, one
year ago. The portfolio's annualized net yield for the six-month period ended
February 29, 1996 was 5.20 percent and its daily yield was 4.89 percent. On
February 29, 1996, the portfolio's average maturity was 72 days.
YIELDS DECLINED, THEN STABILIZED
During the first five months of the period under review, yields available to the
Fund declined gradually. By February, however, rates began to stabilize. With a
very strong report of employment data for February, which was released in early
March, short-term yields in the six-to-twelve-month maturity range rose by 15 to
25 basis points (.15 to .25 percent) as most money market participants concluded
that the Federal Reserve Board's monetary policy could remain on hold for some
time to come. This contrasted with a prior expectation that short-term rates
would continue to fall. It must be noted, however, that employment data is
subject to revision and seasonal adjustments are applied which may not always
produce reliable results.
PORTFOLIO COMPOSITION
On February 29, 1996, approximately 80 percent of the Fund's portfolio consisted
of high-quality commercial paper, with 16 percent invested in the short-term
notes and certificates of deposit of major, financially strong commercial banks,
and the remaining 4 percent in Federal agency and U.S. Treasury obligations.
The portfolio is well positioned to reflect future changes in the level of money
market rates and maintains a very high degree of liquidity. On February 29,
1996, more than 84 percent of the Fund's investments were due to mature in less
than four months. We will continue to operate the
<PAGE> 2
DEAN WITTER LIQUID ASSET FUND INC.
LETTER TO THE SHAREHOLDERS February 29, 1996, continued
Fund in a conservative, straight-forward style without using "structured notes"
or derivatives, which fluctuate excessively when interest rates change.
THE OUTLOOK
While the employment data has displayed strength recently, other key economic
indicators have continued to provide mixed signals. We expect the Federal
Reserve to wait for a clearly sustained picture of economic activity before
acting to dramatically alter monetary policy. Therefore, we do not anticipate
significant movement in money market yield levels during early 1996.
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> 3
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 29, 1996 (unaudited)
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT IN AND ON DATE OF
THOUSANDS MATURITY DATE PURCHASE VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER (81.4%)
Automotive - Finance (7.4%)
$290,000 Ford Motor Credit Co.
03/04/96 to 06/03/96...................... 5.25 to 5.71% $ 287,671,240
555,000 General Motors Acceptance Corp.
03/04/96 to 08/26/96...................... 5.02 to 5.78 549,692,743
------------
837,363,983
------------
Bank Holding Companies (16.6%)
195,000 BankAmerica Corp. 03/20/96 to 06/05/96.... 5.40 to 5.68 192,937,443
500,000 Chemical Banking Corp. 03/13/96 to
07/30/96.................................. 5.27 to 5.74 495,273,233
75,000 Corestates Capital Corp. 03/27/96 to
05/24/96.................................. 5.48 to 5.64 74,495,633
545,000 Morgan (J.P.) & Co. Inc. 03/06/96 to
08/30/96.................................. 5.04 to 5.78 539,108,373
235,000 NationsBank Corp. 04/11/96 to 04/29/96.... 5.65 to 5.73 233,221,472
235,000 PNC Funding Corp. 03/05/96 to 06/20/96.... 5.13 to 5.79 232,357,967
100,000 Republic New York Corp.
04/30/96 to 07/12/96...................... 5.05 to 5.44 98,642,472
-------------
1,866,036,593
-------------
Banks - Commercial (24.2%)
457,000 Abbey National North America Corp.
03/06/96 to 08/23/96...................... 5.00 to 5.68 451,663,454
490,000 ABN-AMRO North America Finance Inc.
04/10/96 to 09/03/96...................... 5.06 to 5.79 482,929,858
105,000 Canadian Imperial Holdings Inc.
03/08/96 to 04/29/96...................... 5.34 to 5.50 104,647,787
550,000 Deutsche Bank Financial Inc.
03/19/96 to 07/31/96...................... 4.97 to 5.44 542,965,100
545,000 Dresdner U.S. Finance Inc.
03/01/96 to 07/31/96...................... 5.19 to 5.79 539,790,478
173,000 Internationale Nederlanden (U.S.) Funding
Corp. 03/25/96 to 06/21/96................ 5.17 to 5.55 171,463,719
265,000 National Australia Funding (DE) Inc.
03/19/96 to 05/03/96...................... 5.39 to 5.77 263,566,893
122,000 Societe Generale N.A., Inc.
03/18/96 to 08/23/96...................... 5.00 to 5.75 120,745,251
45,000 Toronto-Dominion Holdings USA Inc.
04/11/96.................................. 5.42 44,725,813
-------------
2,722,498,353
-------------
Brokerage (0.8%)
45,000 Goldman Sachs Group L.P.
03/07/96 to 04/18/96...................... 5.39 to 5.74 44,803,833
50,000 Morgan Stanley Group Inc. 03/25/96........ 5.53 49,818,334
------------
94,622,167
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 29, 1996 (unaudited) continued
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT IN AND ON DATE OF
THOUSANDS MATURITY DATE PURCHASE VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Finance - Commercial (3.7%)
$415,000 CIT Group Holdings, Inc.
03/08/96 to 05/13/96...................... 5.10 to 5.73% $ 413,443,597
------------
Finance - Consumer (7.6%)
552,000 American Express Credit Corp.
03/15/96 to 08/09/96...................... 5.00 to 5.75 544,968,385
40,000 American General Finance Corp.
05/10/96.................................. 5.42 39,586,222
150,000 Avco Financial Services Inc.
03/20/96 to 04/16/96...................... 5.45 to 5.66 149,274,375
120,000 Household Finance Corp.
04/08/96 to 06/17/96...................... 5.06 to 5.22 118,990,011
------------
852,818,993
------------
Finance - Diversified (7.2%)
262,000 Associates Corp. of North America
03/05/96 to 08/22/96...................... 5.06 to 5.71 258,636,286
559,000 General Electric Capital Corp.
03/01/96 to 08/26/96...................... 4.95 to 5.85 554,792,646
------------
813,428,932
------------
Finance - Equipment (0.5%)
60,000 Deere (John) Capital Corp.
3/19/96 to 04/22/96....................... 5.18 to 5.52 59,601,528
------------
Foods & Beverages (1.8%)
205,000 Coca-Cola Co. 03/21/96 to 05/02/96........ 5.10 to 5.59 203,957,083
------------
Healthcare - Diversified (0.3%)
35,000 Schering Corp. 03/27/96................... 5.81 34,857,181
------------
Household Products (0.3%)
30,000 Procter & Gamble Co. 04/24/96............. 5.13 29,771,400
------------
Industrials (0.1%)
15,000 Motorola Inc. 04/25/96.................... 5.12 14,883,813
------------
Office Equipment (5.4%)
119,670 Hewlett-Packard Co.
04/18/96 to 07/19/96...................... 5.04 to 5.46 118,365,223
380,000 IBM Credit Corp.
03/05/96 to 04/02/96...................... 5.66 to 5.72 378,878,361
50,000 International Business Machines Corp.
04/10/96.................................. 5.18 49,714,444
47,000 Pitney Bowes Credit Corp. 04/24/96........ 5.18 46,638,335
20,742 Xerox Credit Corp. 04/23/96............... 5.14 20,586,873
------------
614,183,236
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 29, 1996 (unaudited) continued
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT IN AND ON DATE OF
THOUSANDS MATURITY DATE PURCHASE VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Retail (2.3%)
$260,000 Sears Roebuck Acceptance Corp.
04/01/96 to 06/20/96...................... 5.08 to 5.45% $ 257,331,397
--------------
Telephones (2.0%)
225,000 AT&T Corp. 03/26/96 to 04/10/96........... 5.23 to 5.67 223,942,306
--------------
Utilities - Finance (1.2%)
134,000 National Rural Utilities Cooperative
Finance Corp. 03/15/96 to 04/09/96........ 5.20 to 5.62 133,483,961
--------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $9,172,224,523)........................... 9,172,224,523
--------------
SHORT-TERM BANK NOTES (11.8%)
50,000 Bank of America (Illinois) 05/20/96....... 5.13 50,000,000
170,000 Bank of New York
06/05/96 to 08/21/96...................... 4.97 to 5.59 170,000,000
265,000 F.C.C. National Bank
05/16/96 to 08/08/96...................... 5.04 to 5.34 265,000,000
380,000 First National Bank of Boston
04/17/96 to 07/30/96...................... 5.09 to 5.73 380,000,000
100,000 First Union National Bank
05/09/96 to 05/10/96...................... 5.18 100,000,000
80,000 Mellon Bank, N.A.
04/03/96 to 04/04/96...................... 5.80 80,000,000
280,000 NationsBank, N.A. (Carolinas)
03/11/96 to 08/16/96...................... 5.15 to 5.72 280,000,000
--------------
TOTAL SHORT-TERM BANK NOTES
(Identified Cost $1,325,000,000).......................... 1,325,000,000
--------------
U.S. GOVERNMENT & AGENCIES OBLIGATIONS (4.0%)
10,000 Federal Farm Credit Bank 05/03/96......... 6.28 9,896,575
50,000 Federal Home Loan Banks 04/17/96.......... 5.31 49,657,944
45,000 Federal Home Loan Mortgage Corp.
04/22/96.................................. 5.31 44,659,400
190,000 Federal National Mortgage Assoc.
04/19/96 to 09/18/96...................... 5.24 to 5.34 185,730,711
170,000 U.S. Treasury Bills 07/25/96 to
02/06/97.................................. 5.06 to 5.83 163,883,583
--------------
TOTAL U.S. GOVERNMENT & AGENCIES OBLIGATIONS
(Amortized Cost $453,828,213)............................. 453,828,213
--------------
CERTIFICATES OF DEPOSIT (3.5%)
395,000 Union Bank 03/01/96 to 05/31/96
(Identified Cost $395,000,000)............ 5.13 to 5.88 395,000,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 6
DEAN WITTER LIQUID ASSET FUND INC.
PORTFOLIO OF INVESTMENTS February 29, 1996 (unaudited) continued
<TABLE>
<CAPTION>
ANNUALIZED
PRINCIPAL DESCRIPTION YIELD
AMOUNT IN AND ON DATE OF
THOUSANDS MATURITY DATE PURCHASE VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
BANKERS' ACCEPTANCES (0.3%)
$ 20,000 Chase Manhattan Bank, N.A. 07/22/96....... 4.98% $ 19,613,106
20,000 Corestates Bank, N.A. 04/17/96............ 5.74 19,854,300
---------------
TOTAL BANKERS' ACCEPTANCES
(Amortized Cost $39,467,406).............................. 39,467,406
---------------
REPURCHASE AGREEMENT (0.1%)
9,651 The Bank of New York due 03/01/96 (dated
02/29/96; proceeds $9,652,752;
collateralized by $9,017,382 U.S. Treasury
Bond 7.25% due 05/01/16 valued at
$9,844,234)
(Identified Cost $9,651,210).............. 5.75 9,651,210
---------------
TOTAL INVESTMENTS
(Amortized Cost $11,395,171,352) (a)...... 101.1% 11,395,171,352
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS.................................... (1.1) (124,892,868)
----- ---------------
NET ASSETS................................ 100.0% $11,270,278,484
===== ===============
</TABLE>
- ---------------------
(a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 7
DEAN WITTER LIQUID ASSET FUND INC.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
February 29, 1996 (unaudited)
<S> <C>
ASSETS:
Investments in securities, at value
(amortized cost $11,395,171,352).................................. $11,395,171,352
Cash............................................................... 89,999
Receivable for:
Interest....................................................... 19,035,105
Capital stock sold............................................. 32,572
Prepaid expenses................................................... 541,196
--------------
TOTAL ASSETS................................................... 11,414,870,224
--------------
LIABILITIES:
Payable for:
Capital stock repurchased...................................... 138,418,337
Investment management fee...................................... 2,430,494
Plan of distribution fee....................................... 879,097
Accrued expenses and other payables................................ 2,863,812
--------------
TOTAL LIABILITIES.............................................. 144,591,740
--------------
NET ASSETS:
Paid-in-capital.................................................... 11,269,598,277
Accumulated undistributed net investment income.................... 680,207
--------------
NET ASSETS..................................................... $11,270,278,484
==============
NET ASSET VALUE PER SHARE, 11,270,269,471 shares outstanding
(25,000,000,000 shares authorized of $.01 par value).............. $1.00
====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 8
DEAN WITTER LIQUID ASSET FUND INC.
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended February 29, 1996 (unaudited)
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME....................................................... $312,085,883
-----------
EXPENSES
Investment management fee............................................. 14,837,061
Transfer agent fees and expenses...................................... 13,002,654
Plan of distribution fee.............................................. 4,970,398
Registration fees..................................................... 491,890
Shareholder reports and notices....................................... 309,610
Custodian fees........................................................ 160,484
Professional fees..................................................... 26,013
Directors' fees and expenses.......................................... 9,706
Other................................................................. 46,162
-----------
TOTAL EXPENSES.................................................... 33,853,978
-----------
NET INVESTMENT INCOME AND NET INCREASE................................ $278,231,905
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 9
DEAN WITTER LIQUID ASSET FUND INC.
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
1996 1995
------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income and net increase............ $ 278,231,905 $ 497,349,607
Dividends from net investment income.............. (278,234,379) (497,395,126)
Net increase from capital stock transactions...... 910,804,939 1,867,938,438
-------------- -------------
TOTAL INCREASE................................ 910,802,465 1,867,892,919
NET ASSETS:
Beginning of period............................... 10,359,476,019 8,491,583,100
-------------- -------------
END OF PERIOD
(Including undistributed net investment income
of $680,207 and $682,681, respectively)....... $11,270,278,484 $10,359,476,019
=============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 10
DEAN WITTER LIQUID ASSET FUND INC.
NOTES TO FINANCIAL STATEMENTS February 29, 1996 (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.
Discounts are accreted and premiums are amortized 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 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 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
<PAGE> 11
DEAN WITTER LIQUID ASSET FUND INC.
NOTES TO FINANCIAL STATEMENTS February 29, 1996 (unaudited) continued
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 entered into selected dealer agreements
with the Distributor under the Plan: (1) compensation to, and expenses of,
account executives of DWR, other employees and selected broker-dealers,
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) preparation, printing and distribution of 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 29, 1996, the distribution fee was accrued at the annual rate of 0.09%.
<PAGE> 12
DEAN WITTER LIQUID ASSET FUND INC.
NOTES TO FINANCIAL STATEMENTS February 29, 1996 (unaudited) continued
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 29, 1996 aggregated $18,764,130,034 and
$18,094,076,368, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At February 29, 1996, the Fund had
transfer agent fees and expenses payable of approximately $2,270,000.
The Fund has 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
29, 1996 included in Directors' fees and expenses in the Statement of Operations
amounted to $2,028. At February 29, 1996, the Fund had an accrued pension
liability of $52,052 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 YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
------------------------ ------------------
(unaudited)
<S> <C> <C>
Shares sold............................................................. 15,236,735,101 28,802,984,447
Shares issued in reinvestment of dividends.............................. 277,364,162 495,919,572
---------------- -------------
15,514,099,263 29,298,904,019
Shares repurchased...................................................... (14,603,294,324) (27,430,965,581)
---------------- -------------
Net increase............................................................ 910,804,939 1,867,938,438
================ =============
</TABLE>
<PAGE> 13
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 FOR THE YEAR ENDED AUGUST 31
FEBRUARY ---------------------------------------------------------
29, 1996 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<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............................. 0.026 0.053 0.030 0.027 0.040 0.064
Less dividends from net investment income......... (0.026) (0.053) (0.030) (0.027) (0.040) (0.064)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN........................... 2.63%(1) 5.41% 3.07% 2.72% 4.10% 6.61%
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 0.63%(2) 0.65% 0.70% 0.69% 0.67% 0.62%
Net investment income............................. 5.20%(2) 5.28% 3.02% 2.67% 4.03% 6.41%
SUPPLEMENTAL DATA:
Net assets, end of period, in millions............ $11,270 $10,359 $8,492 $7,959 $9,214 $10,811
</TABLE>
- ---------------------
(1) Not annualized.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 14
(This Page Intentionally Left Blank)
<PAGE> 15
(This Page Intentionally Left Blank)
<PAGE> 16
BOARD OF DIRECTORS
- -----------------------------------------------
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
[DEAN WITTER LIQUID ASSET FUND LOGO]
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
directors, 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.
Semiannual Report
February 29, 1996
