-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AwTn5QjbcpZq8t6I9Xq6rg0NiYVi1wwx3Fc7bD/6h0yv0f0437Iu1KDn1TONOiel yzQmV6uGTiZHEOErPJxICw== 0000912057-97-016746.txt : 19970513 0000912057-97-016746.hdr.sgml : 19970513 ACCESSION NUMBER: 0000912057-97-016746 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970512 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEAN WITTER LIQUID ASSET FUND INC CENTRAL INDEX KEY: 0000093285 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 132822397 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02575 FILM NUMBER: 97600323 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CTR CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2123922550 FORMER COMPANY: FORMER CONFORMED NAME: DEAN WITTER SEARS LIQUID ASSET FUND INC DATE OF NAME CHANGE: 19930209 FORMER COMPANY: FORMER CONFORMED NAME: INTERCAPITAL LIQUID ASSET FUND INC DATE OF NAME CHANGE: 19830308 FORMER COMPANY: FORMER CONFORMED NAME: STANDARD & POORS INTERCAPITAL LIQUID ASS DATE OF NAME CHANGE: 19771115 N-30D 1 N-30D DEAN WITTER LIQUID ASSET FUND INC. TWO WORLD TRADE CENTER, NEW YORK, NEW YORK 10048 LETTER TO THE SHAREHOLDERS FEBRUARY 28, 1997 DEAR SHAREHOLDER: As of February 28, 1997, Dean Witter Liquid Asset Fund had assets in excess of $12.4 billion. The Fund's annualized net yield for the six-month period ended February 28, 1997, was 4.95 percent and its annualized 30-day yield at the end of the period was 4.97 percent. On February 28, 1997, the portfolio's average maturity was 79 days. MARKET OVERVIEW During the period under review, rates available on money market securities remained steady, as the Federal Reserve Board's monetary policy remained constant for the past one-year period with a stable discount rate of 5.00 percent and a federal funds target of 5.25 percent. However, this may change as a result of the economy's resurging strength, which has been evident since last summer. Industrial production and retail sales have been strong for the beginning of the first quarter of 1997. Any further increase in capacity utilization or signs of labor tightness might lead the Federal Open Market Committee to take preemptive action against possible inflationary pressures. Thus, an increase in the target for the federal funds rate and other money market rates for the balance of 1997 has become more likely with the increasing pace of economic activity. PORTFOLIO COMPOSITION AND STRUCTURE On February 28, 1997, approximately 81 percent of the portfolio was invested in high-quality commercial paper, 16 percent in short-term bank notes and certificates of deposit of major, financially strong commercial banks, 1 percent in bankers' acceptances issued by such institutions, and the remaining 2 percent in federal agency and U.S. Treasury obligations. At the end of the period under review, more than 76 percent of the Fund's assets were due to mature in less than four months. The portfolio is thus well positioned for stability of principal with a DEAN WITTER LIQUID ASSET FUND INC. LETTER TO THE SHAREHOLDERS FEBRUARY 28, 1997, CONTINUED high degree of liquidity. We continue to operate the Fund in a straightforward, conservative style without including structured notes or derivatives that could fluctuate excessively with changing interest rates. LOOKING AHEAD While economic activity has increased, we do not expect significantly higher inflation for 1997 than was experienced in 1996. We anticipate that investment yields available to the Fund during the next six months will be similar to, or perhaps slightly higher than, those achieved during the past six months. As always, the Fund seeks to provide liquidity, preservation of capital and a yield that reflects prevailing money market conditions. We appreciate your ongoing support of Dean Witter Liquid Asset Fund and look forward to continuing to serve your investment needs and objectives. Very truly yours, [SIGNATURE] CHARLES A. FIUMEFREDDO CHAIRMAN OF THE BOARD DEAN WITTER LIQUID ASSET FUND INC. PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED)
ANNUALIZED PRINCIPAL YIELD ON AMOUNT IN DATE OF MATURITY THOUSANDS PURCHASE DATE - ------------------------------------------------------------------------------------------------------------------------ COMMERCIAL PAPER (80.9%) AUTOMOTIVE - FINANCE (7.2%) $$295,000 Ford Motor Credit Co.................................................. 5.34-5.44% 04/08/97-04/28/97 612,000 General Motors Acceptance Corp........................................ 5.41-5.71 03/14/97-08/25/97 BANK HOLDING COMPANIES (16.1%) 295,000 BankAmerica Corp...................................................... 5.44-5.45 04/25/97-06/05/97 500,000 Bankers Trust New York Corp........................................... 5.34-5.45 03/17/97-05/30/97 390,000 Morgan (J.P.) & Co., Inc.............................................. 5.43-5.48 03/20/97-07/15/97 30,000 Mellon Financial Co................................................... 5.43 06/02/97 25,000 NationsBank Corp...................................................... 5.30 04/30/97 435,000 PNC Funding Corp...................................................... 5.40-5.43 03/21/97-05/01/97 250,000 Republic New York Corp................................................ 5.38-5.50 04/23/97-08/04/97 89,000 SunTrust Banks, Inc................................................... 5.47 03/25/97 BANKS - COMMERCIAL (32.3%) 525,000 Abbey National North America Corp..................................... 5.42-5.65 03/24/97-10/10/97 337,000 ABN-AMRO North America Finance Inc.................................... 5.39-5.67 03/06/97-10/10/97 350,000 ANZ (Delaware) Inc.................................................... 5.34-5.57 03/04/97-09/12/97 75,000 Barclays U.S. Funding Corp............................................ 5.33-5.38 03/07/97-05/20/97 522,000 Canadian Imperial Holdings Inc........................................ 5.36-5.42 03/04/97-08/28/97 605,000 Deutsche Bank Financial Inc........................................... 5.39-5.50 04/01/97-08/05/97 465,000 Dresdner U.S. Finance Inc............................................. 5.35-5.62 05/07/97-07/22/97 50,000 Internationale Nederlanden (U.S.) Funding Corp........................ 5.50 07/07/97 190,000 National Australia Funding (DE) Inc................................... 5.39-5.52 03/11/97-07/24/97 307,000 Societe Generale N.A., Inc............................................ 5.34-5.62 03/27/97-07/25/97 280,000 Toronto-Dominion Holdings USA Inc..................................... 5.37-5.63 03/03/97-10/16/97 50,000 Union Commercial Funding Corp......................................... 5.56 07/10/97 310,000 Westpac Capital Corp.................................................. 5.40-5.75 03/06/97-07/08/97 BROKERAGE (1.9%) 240,000 Goldman Sachs Group L.P............................................... 5.39-5.42 03/11/97-03/19/97 FINANCE - COMMERCIAL (2.2%) 270,000 CIT Group Holdings, Inc............................................... 5.32-5.47 04/09/97-05/21/97 FINANCE - CONSUMER (8.0%) 390,000 American Express Credit Corp.......................................... 5.27-5.43 03/04/97-05/30/97 235,000 Avco Financial Services Inc........................................... 5.40-5.49 04/08/97-06/18/97 142,000 Beneficial Corp....................................................... 5.35-5.47 04/11/97-05/13/97 220,000 Household Finance Corp................................................ 5.37-5.42 03/07/97-05/09/97 20,000 Norwest Financial, Inc................................................ 5.30 04/16/97 PRINCIPAL AMOUNT IN THOUSANDS VALUE - ----------- $$295,000 $ 293,036,875 612,000 601,334,522 ------------------- 894,371,397 ------------------- 295,000 291,593,029 500,000 495,726,511 390,000 383,765,553 30,000 29,585,375 25,000 24,781,250 435,000 432,782,128 250,000 247,514,733 89,000 88,679,600 ------------------- 1,994,428,179 ------------------- 525,000 518,086,579 337,000 328,838,997 350,000 344,511,621 75,000 74,663,611 522,000 515,986,872 605,000 596,294,878 465,000 458,138,339 50,000 49,047,111 190,000 186,911,453 307,000 302,951,231 280,000 275,838,760 50,000 49,015,681 310,000 306,522,840 ------------------- 4,006,807,973 ------------------- 240,000 239,555,072 ------------------- 270,000 267,794,981 ------------------- 390,000 388,288,147 235,000 232,309,746 142,000 140,756,753 220,000 218,834,283 20,000 19,865,578 ------------------- 1,000,054,507 -------------------
SEE NOTES TO FINANCIAL STATEMENTS DEAN WITTER LIQUID ASSET FUND INC. PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED) CONTINUED
ANNUALIZED PRINCIPAL YIELD ON AMOUNT IN DATE OF MATURITY THOUSANDS PURCHASE DATE - ------------------------------------------------------------------------------------------------------------------------ FINANCE - DIVERSIFIED (7.2%) $ 290,000 Associates Corp. of North America..................................... 5.35-5.49% 04/07/97-05/07/97 619,000 General Electric Capital Corp......................................... 5.33-5.98 03/03/97-10/02/97 FOODS & BEVERAGES (0.8%) 25,000 Coca-Cola Co.......................................................... 5.37 04/02/97 81,000 Heinz (H.J.) Co....................................................... 5.45-5.49 03/03/97-06/20/97 INDUSTRIALS (1.0%) 110,000 Caterpillar Financial Services Corp................................... 5.42-5.45 04/29/97-06/20/97 12,000 Motorola Inc.......................................................... 5.30 05/08/97 INSURANCE (0.3%) 40,000 AIG Funding Inc....................................................... 5.41-5.62 03/17/97-08/21/97 OFFICE EQUIPMENT (2.1%) 135,000 IBM Credit Corp....................................................... 5.34-5.40 03/13/97-05/29/97 125,000 International Business Machines Corp.................................. 5.36-5.37 03/05/97-03/19/97 RETAIL (0.5%) 60,000 Sears Roebuck Acceptance Corp......................................... 5.34-5.42 03/05/97-04/14/97 TELEPHONE (0.5%) 30,000 Ameritech Corp........................................................ 5.59 03/25/97 30,000 BellSouth Telecommunications Inc...................................... 5.42 03/10/97 UTILITIES - FINANCE (0.8%) 100,000 National Rural Utilities Cooperative Finance Corp..................... 5.36 03/10/97-03/11/97 TOTAL COMMERCIAL PAPER (AMORTIZED COST $10,045,126,448)........................................................................... SHORT-TERM BANK NOTES (7.9%) 185,000 Bank of America NT & SA............................................... 5.42-5.49 03/25/97-06/27/97 315,000 F.C.C. National Bank.................................................. 5.50-5.53 04/29/97-07/11/97 130,000 First National Bank of Boston......................................... 5.41-5.46 04/29/97-07/10/97 25,000 First National Bank of Chicago........................................ 5.40 08/20/97 220,000 La Salle National Bank................................................ 5.36-5.61 03/05/97-10/31/97 100,000 NationsBank, N.A...................................................... 5.38 03/13/97 TOTAL SHORT-TERM BANK NOTES (AMORTIZED COST $975,000,000).............................................................................. PRINCIPAL AMOUNT IN THOUSANDS VALUE - ----------- $ 290,000 $ 287,873,753 619,000 610,452,608 ------------------- 898,326,361 ------------------- 25,000 24,882,222 81,000 80,167,450 ------------------- 105,049,672 ------------------- 110,000 108,763,692 12,000 11,881,227 ------------------- 120,644,919 ------------------- 40,000 39,446,011 ------------------- 135,000 134,367,946 125,000 124,838,133 ------------------- 259,206,079 ------------------- 60,000 59,729,555 ------------------- 30,000 29,891,200 30,000 29,959,875 ------------------- 59,851,075 ------------------- 100,000 99,860,667 ------------------- 10,045,126,448 ------------------- 185,000 185,000,000 315,000 315,000,000 130,000 130,000,000 25,000 25,000,000 220,000 220,000,000 100,000 100,000,000 ------------------- 975,000,000 -------------------
SEE NOTES TO FINANCIAL STATEMENTS DEAN WITTER LIQUID ASSET FUND INC. PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED) CONTINUED
ANNUALIZED PRINCIPAL YIELD ON AMOUNT IN DATE OF MATURITY THOUSANDS PURCHASE DATE - ------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT (8.3%) $ 445,000 Chase Manhattan Bank (USA)............................................ 5.37-5.55% 03/07/97-07/21/97 150,000 Mellon Bank, N.A...................................................... 5.48-5.50 03/03/97-04/14/97 340,000 Union Bank of California, N.A......................................... 5.45-5.71 03/18/97-07/10/97 90,000 Wachovia Bank of North Carolina, N.A.................................. 5.35-5.38 06/25/97-07/17/97 TOTAL CERTIFICATES OF DEPOSIT (AMORTIZED COST $1,025,000,000)............................................................................ U.S. GOVERNMENT & AGENCY OBLIGATIONS (1.8%) 40,000 Federal Farm Credit Bank.............................................. 5.57 11/12/97 35,000 Federal Home Loan Banks............................................... 5.43 03/31/97 50,000 Federal Home Loan Mortgage Corp....................................... 5.40 03/31/97 100,000 U.S. Treasury Bills................................................... 5.14-5.52 03/06/97-02/05/98 TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (AMORTIZED COST $221,581,003).............................................................................. BANKERS' ACCEPTANCES (1.7%) 27,000 Chase Manhattan Bank, N.A............................................. 5.32-5.43 04/22/97-05/27/97 100,000 Corestates Bank, N.A.................................................. 5.37-5.48 03/06/97-08/20/97 10,000 First Bank National Association....................................... 5.40 05/19/97 80,000 Republic National Bank of New York.................................... 5.37 04/07/97 TOTAL BANKERS' ACCEPTANCES (AMORTIZED COST $214,680,369).............................................................................. REPURCHASE AGREEMENT (0.1%) 14,647 The Bank of New York (dated 02/28/97; proceeds $14,653,838; collateralized by $2,317,056 Federal Home Loan Banks 0.00% due 08/26/97 valued at $2,255,767 and by $12,672,570 U.S. Treasury Note 5.875% due 01/31/99 valued at $12,684,611) (Identified Cost $14,647,430)........................................................ 5.25 03/03/97 PRINCIPAL AMOUNT IN THOUSANDS VALUE - ----------- $ 445,000 $ 445,000,000 150,000 150,000,000 340,000 340,000,000 90,000 90,000,000 ------------------- 1,025,000,000 ------------------- 40,000 38,492,445 35,000 34,843,958 50,000 49,778,333 100,000 98,466,267 ------------------- 221,581,003 ------------------- 27,000 26,717,994 100,000 98,511,114 10,000 9,884,572 80,000 79,566,689 ------------------- 214,680,369 ------------------- 14,647 14,647,430 ------------------- TOTAL INVESTMENTS (AMORTIZED COST $12,496,035,250) (A)..................................... 100.7 % 12,496,035,250 LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS........................... (0.7) (86,490,517) ----- -------------- NET ASSETS............................................................... 100.0 % $12,409,544,733 ----- -------------- ----- -------------- - --------------------- (a) Cost is the same for federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS DEAN WITTER LIQUID ASSET FUND INC. FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1997 (UNAUDITED) ASSETS: Investments in securities, at value (amortized cost $12,496,035,250).......................... $12,496,035,250 Cash........................................................ 90,001 Receivable for: Interest................................................ 26,024,832 Capital stock sold...................................... 201,576 Prepaid expenses and other assets........................... 637,850 --------------- TOTAL ASSETS........................................... 12,522,989,509 --------------- LIABILITIES: Payable for: Capital stock repurchased............................... 107,024,766 Investment management fee............................... 2,600,905 Plan of distribution fee................................ 950,225 Accrued expenses and other payables......................... 2,868,880 --------------- TOTAL LIABILITIES...................................... 113,444,776 --------------- NET ASSETS: Paid-in-capital............................................. 12,408,857,593 Accumulated undistributed net investment income............. 687,140 --------------- NET ASSETS............................................. $12,409,544,733 --------------- --------------- NET ASSET VALUE PER SHARE, 12,409,528,787 SHARES OUTSTANDING (25,000,000,000 SHARES AUTHORIZED OF $.01 PAR VALUE)............................. $1.00 --------------- ---------------
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED) NET INVESTMENT INCOME: INTEREST INCOME............................................. $330,709,419 ------------ EXPENSES Investment management fee................................... 16,318,450 Transfer agent fees and expenses............................ 13,315,657 Plan of distribution fee.................................... 5,774,564 Registration fees........................................... 523,145 Shareholder reports and notices............................. 279,552 Custodian fees.............................................. 168,280 Professional fees........................................... 33,674 Directors' fees and expenses................................ 7,142 Other....................................................... 45,643 ------------ TOTAL EXPENSES......................................... 36,466,107 ------------ NET INVESTMENT INCOME AND NET INCREASE...................... $294,243,312 ------------ ------------
SEE NOTES TO FINANCIAL STATEMENTS DEAN WITTER LIQUID ASSET FUND INC. FINANCIAL STATEMENTS, CONTINUED STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE YEAR FEBRUARY 28, ENDED 1997 AUGUST 31, (UNAUDITED) 1996 - -------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: OPERATIONS: Net investment income and net increase...................... $ 294,243,312 $ 556,631,606 Dividends from net investment income........................ (294,244,919) (556,625,540) Net increase from capital stock transactions................ 1,020,077,690 1,029,986,565 -------------- -------------- NET INCREASE........................................... 1,020,076,083 1,029,992,631 NET ASSETS: Beginning of period......................................... 11,389,468,650 10,359,476,019 -------------- -------------- END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $687,140 AND $688,747, RESPECTIVELY).................... $12,409,544,733 $11,389,468,650 -------------- -------------- -------------- --------------
SEE NOTES TO FINANCIAL STATEMENTS DEAN WITTER LIQUID ASSET FUND INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1997 (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's investment objectives are high current income, preservation of capital and liquidity. The Fund was incorporated in Maryland on September 3, 1974 and commenced operations on September 22, 1975. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. 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 the 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 DEAN WITTER LIQUID ASSET FUND INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1997 (UNAUDITED) CONTINUED 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 selected broker-dealers 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, printing 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, 1997, the distribution fee was accrued at the annual rate of 0.10%. DEAN WITTER LIQUID ASSET FUND INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1997 (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 28, 1997 aggregated $19,779,418,048 and $19,019,358,068, respectively. Dean Witter Trust Company, an affiliate of the Investment Manager and Distributor, is the Fund's transfer agent. At February 28, 1997, the Fund had transfer agent fees and expenses payable of approximately $2,113,000. The Fund has an unfunded noncontributory defined benefit pension plan covering all independent Directors of the Fund who will have served as independent Directors 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, 1997 included in Directors' fees and expenses in the Statement of Operations amounted to $755. At February 28, 1997, the Fund had an accrued pension liability of $48,525 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:
FOR THE YEAR ENDED AUGUST 31, 1996 FOR THE SIX ---------------- MONTHS ENDED FEBRUARY 28, 1997 ---------------- (UNAUDITED) Shares sold...................................................... 17,124,977,740 31,284,601,651 Shares issued in reinvestment of dividends....................... 293,449,817 554,968,386 ---------------- ---------------- 17,418,427,557 31,839,570,037 Shares repurchased............................................... (16,398,349,867) (30,809,583,472) ---------------- ---------------- Net increase..................................................... 1,020,077,690 1,029,986,565 ---------------- ---------------- ---------------- ----------------
DEAN WITTER LIQUID ASSET FUND INC. FINANCIAL HIGHLIGHTS Selected ratios and per share data for a share of capital stock outstanding throughout each period:
FOR THE SIX MONTHS ENDED FEBRUARY FOR THE YEAR ENDED AUGUST 31 28, 1997 ------------------------------------------------------ (UNAUDITED) 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------ 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 0.050 0.053 0.030 0.027 0.040 Less dividends from net investment income.......... (0.025) (0.050) (0.053) (0.030) (0.027) (0.040) ---------- --------- --------- ---------- --------- --------- Net asset value, end of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ---------- --------- --------- TOTAL INVESTMENT RETURN+.......... 2.51%(1) 5.15% 5.41% 3.07% 2.72% 4.10% RATIOS TO AVERAGE NET ASSETS: Expenses......... 0.61%(2) 0.63% 0.65% 0.70% 0.69% 0.67% Net investment income.......... 4.95%(2) 5.02% 5.28% 3.02% 2.67% 4.03% SUPPLEMENTAL DATA: Net assets, end of period, in millions........ $12,410 $11,389 $10,359 $8,492 $7,959 $9,214 - --------------------- + Calculated based on the net asset value as of the last business day of the period. (1) Not annualized. (2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS Board of Directors - ---------------------------------- Michael Bozic Charles A. Fiumefreddo Edwin J. Garn John R. Haire Dr. Manuel H. Johnson Michael E. Nugent Philip J. Purcell John L. Schroeder Officers - ---------------------------------- DEAN WITTER Charles A. Fiumefreddo CHAIRMAN AND CHIEF EXECUTIVE OFFICER LIQUID ASSET FUND Barry Fink 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 directors, fees, expenses and other pertinent information, SEMIANNUAL REPORT please see the prospectus of the Fund. FEBRUARY 28, 1997 This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus. -----END PRIVACY-ENHANCED MESSAGE-----