Morgan Stanley Dean Witter Charter Series
Monthly Report
April 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the three Morgan Stanley Dean
Witter Charter Funds as of April 30, 1999 was as follows:
Funds N.A.V. % change for month
Charter Graham $ 9.59 4.22%
Charter Millburn $10.45 5.04%
Charter Welton $ 9.26 0.32%
In Charter Graham, gains were recorded during April primarily in the
currency markets from short Swiss franc positions as the value of the franc
weakened relative to the U.S. dollar due to the lack of economic growth in
the European community, the ongoing crisis in Yugoslavia and strong
economic data out of the U.S. In the energy markets, gains were recorded
from long crude oil futures positions as prices climbed to their highest
levels since December 1997 due largely to declines in inventory levels and
growing confidence that oil exporting countries are cutting production. In
soft commodities, gains were recorded from short cocoa futures positions as
prices declined to a 5 1/2-year low in reaction to reports of a surplus in
supplies, declining demand and a promising West African crop. In the
global stock index futures markets, gains were recorded from long Nikkei
Index futures positions as the Tokyo equity benchmark moved higher
following gains on Wall Street and on hopes that the Japanese government
may take more measures to stimulate their economy. A portion of the Fund's
overall gains was offset by losses in the agricultural markets from long
corn futures positions as prices regressed early in the month in reaction
to reports by the USDA that the expected corn surplus will be one of the
biggest in years and from declining demand in the Asian markets. Later in
the month, corn prices fell due to aggressive selling by commodity
investment funds amid technical factors and on reports of favorable
planting conditions. In the global interest rate futures markets, losses
were experienced from long Australian bond futures positions as prices
decreased amid a lower-than-expected first quarter Australian Consumer
Price Index rate that reduced any thoughts of a near-term monetary policy
easing by the Royal Bank of Australia.
In Charter Millburn, gains were recorded during April primarily in the
global stock index futures markets from long Hang Seng Index futures
positions as Hong Kong equity prices increased due to selective buying of
blue chips on speculation that local banks would cut interest rates. In
the metals markets, gains were recorded from long aluminum futures
positions as base metal prices increased later in the month amid
technically driven buying and in response to strong producer demand and
tightening supply levels. In the energy markets, gains were recorded from
long crude oil futures positions as prices climbed to their highest levels
since December 1997 due largely to declines in inventory levels and growing
confidence that oil exporting countries are cutting production. In the
currency markets, gains were recorded from short positions in the Swiss
franc and the European common currency as these European currencies
weakened relative to the U.S. dollar due to the lack of economic growth in
the European community, the ongoing crisis in Yugoslavia and strong
economic data out of the U.S. A portion of the Fund's overall gains was
offset by losses in soft commodities from short coffee futures positions as
prices jumped higher near month-end. In the global interest rate futures
markets, losses were experienced early in the month from short U.S.
interest rate futures positions as prices moved suddenly higher in reaction
to an encouraging U.S. employment report and larger-than-expected rate cut
by the European Central Bank.
In Charter Welton, gains were recorded during April primarily in the
currency markets from short positions in the European common currency as
the value of the euro weakened versus the U.S. dollar due to the lack of
economic growth in the European community, the ongoing crisis in Yugoslavia
and strong economic data out of the U.S. In the global stock index futures
markets, gains were recorded from long Hang Seng Index futures positions as
Hong Kong share prices increased on selective buying of blue chips on
speculation that local banks would cut interest rates. In the energy
markets, gains were recorded from long crude oil futures positions as
prices continued to move higher to their highest levels since December 1997
due largely to declines in inventory levels and growing confidence that oil
exporting countries are cutting production. A portion of the Fund's
overall gains was offset by losses in the metals markets from
<PAGE>
short zinc futures positions as base metal prices increased later in the
month amid technically driven buying and in response to strong producer
demand and tightening supply levels. In soft commodities, losses were
experienced from short cotton positions as prices increased later in the
month on fund buying and interest in certificated cotton stocks. In the
global interest rate futures markets, losses were recorded early in the
month from short U.S. interest rate futures positions as prices moved
suddenly higher in reaction to an encouraging U.S. employment report and
larger-than-expected rate cut by the European Central Bank.
Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd
Floor, New York , NY 10048, or your Morgan Stanley Dean Witter Financial
Advisor.
I hereby affirm, that to the best of my knowledge and belief, the
information contained in this report is accurate and complete. Past
performance is not a guarantee of future results.
Sincerely,
Robert E. Murray
President
Demeter Management Corporation
General Partner
<PAGE>
MORGAN STANLEY DEAN WITTER CHARTER SERIES
Historical Fund Performance
Presented below is the percentage change in Net Asset Value per
Unit from the start of the calendar year and the inception-to-
date return for each Fund in the Morgan Stanley Dean Witter
Charter Series. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS.
Charter Graham
Year Return
1999 (2 months) -4.1%
Inception-to-Date Return: -4.1%
_________________________________________________________________
___________________________
Charter Millburn
Year Return
1999 (2 month) 4.5%
Inception-to-Date Return: 4.5%
_________________________________________________________________
___________________________
Charter Welton
Year Return
1999 (2 month) -7.4%
Inception-to-Date Return: -7.4%
_________________________________________________________________
___________________________
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Charter Series
Statements of Operations
For the Month Ended April 30, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter
Charter Graham L.P. Morgan Stanley Dean Witter Charter Millburn L.P.
Percent of
Percent of
April 1, 1999 April
1, 1999
Amount Net Asset Value Amount
Net Asset Value
$ % $
%
REVENUES
<S> <C> <C>
<C> <C>
Trading Profit (Loss):
Realized (87,573) (1.44)
(41,108) (0.54)
Net change in unrealized 374,851 6.15
541,841 7.08
Total Trading Results 287,278 4.71
500,733 6.54
Interest Income (DWR and Carr) 15,363 0.25
18,130 0.24
Total Revenues 302,641 4.96
518,863 6.78
EXPENSES
Brokerage fees (DWR) 35,527 0.58 44,658
0.59
Management fees 10,151 0.16 12,760
0.17
Incentive fees - - 75,290
0.98
Total Expenses 45,678 0.74
132,708 1.74
NET INCOME 256,963 4.22
386,155 5.04
Morgan Stanley Dean Witter Charter Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1999
(Unaudited)
Morgan Stanley Dean Witter Charter Graham L.P. Morgan
Stanley Dean Witter Charter Millburn L.P.
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
April 1, 1999 662,083.802 6,090,363 9.20
769,518.500 7,655,751 9.95
Net Income - 256,963 0.39
- - 386,155 0.50
Subscriptions 200,675.044 1,924,474 9.59
244,260.975 2,552,527 10.45
Net Asset Value,
April 30, 1999 862,758.846 8,271,800 9.59
1,013,779.475 10,594,433 10.45
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Charter Series
Statements of Operations
For the Month Ended April 30, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean
Witter Charter Welton L.P.
Percent of
April 1, 1999
Amount Net Asset Value
$ %
REVENUES
<S> <C> <C>
Trading Profit (Loss):
Realized (144,292) (1.78)
Net change in unrealized 209,990 2.59
Total Trading Results 65,698 0.81
Interest Income (DWR and Carr) 20,928 0.26
Total Revenues 86,626 1.07
EXPENSES
Brokerage fees (DWR) 47,283 0.58
Management fees 13,509 0.17
Incentive fees - -
Total Expenses 60,792 0.75
NET INCOME 25,834 0.32
Morgan Stanley Dean Witter Charter Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1999
(Unaudited)
Morgan Stanley Dean Witter Charter Welton L.P.
Units Amount Per Unit
$ $
<S> <C> <C> <C>
Net Asset Value,
April 1, 1999 878,413.940 8,105,617 9.23
Net Income - 25,834 0.03
Subscriptions 266,063.567 2,463,749 9.26
Net Asset Value,
April 30, 1999 1,144,477.507 10,595,200 9.26
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Charter Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Charter Graham L.P. ("Charter
Graham"), Morgan Stanley Dean Witter Charter Millburn L.P. ("Charter
Millburn"), and Morgan Stanley Dean Witter Charter Welton L.P. ("Charter
Welton") (individually, a "Partnership", or collectively, the
"Partnerships") are limited partnerships organized to engage in the
speculative trading of futures and forward contracts, options on futures
contracts and on physical commodities and other commodity interests
including foreign currencies, financial instruments, metals, energy, and
agricultural products (collectively, "futures interests"). The general
partner for each Partnership is Demeter Management Corporation ("Demeter").
The non-clearing commodity broker is Dean Witter Reynolds, Inc. ("DWR") and
an unaffiliated clearing commodity broker, Carr Futures Inc. ("Carr"),
provides clearing and execution services. Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co.
Demeter is required to maintain a 1% minimum interest in the equity of each
Partnership and income (losses) are shared by the General and Limited
Partners based upon their proportional ownership interests.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
Revenue Recognition - Futures interests are open commitments until
settlement date. They are valued at market and the resulting unrealized
gains and losses are reflected in income. Monthly, DWR credits each
Partnership with interest income on 100% of its average daily funds held in
its individual account at DWR at a rate equal to that earned by DWR on its
U.S. Treasury bill investments during such month. Carr also credits DWR
with the interest income earned in respect to the Partnership's Net Assets
maintained in trading accounts at Carr. DWR in turn credits the
Partnership with 100% of the interest income received from Carr. For
purposes of such interest payments, Net Assets do not include monies due
to the Partnership on forward contracts and other futures interests, but
not actually received.
Net Income (Loss) per Unit - Net income (loss) per Unit is computed using
the weighted average number of units outstanding during the period.
Brokerage and Related Transaction Fees and Costs - Each Partnership pays a
flat-rate monthly brokerage fee of 1/12 of 7% of the Partnership's Net
Assets as of the first day of each month (a 7% annual rate). Such fee
covers all brokerage commissions, transaction fees and costs and ordinary
administrative and offering expenses.
Operating Expenses - The Partnerships incur monthly management fees and may
incur incentive fees. Demeter bears all other operating expenses.
Income Taxes - No provision for income taxes has been made in the
accompanying financial statements, as partners are individually responsible
for reporting income or loss based upon their respective share of each
Partnership's revenues and expenses for income tax purposes.
Distributions - Distributions, other than on redemptions of Units, are made
on a pro-rata basis at the sole discretion of Demeter. No distributions
have been made to date.
Continuing Offering - Units of each Partnership are offered at a price
equal to 100% of the Net Assets Value per Unit at monthly closings held as
of the last day of each month.
<PAGE>
Morgan Stanley Dean Witter Charter Series
Notes to Financial Statements
(Continued)
Redemptions - Limited Partners may redeem some or all of their Units as of
the last day of the six months following the closing at which a person
first becomes a Limited Partner. Redemptions may only be made in whole
Units, with a minimum of 100 Units required for each redemption, unless a
Limited Partner is redeeming his entire interest in the Partnership.
Units redeemed on or prior to the last day of the twelfth month from the
date of purchase will be subject to a redemption charge equal to 2% of the
Net Asset Value of a Unit on the
Redemption Date. Units redeemed after the last day of the twelfth month
and on or prior to the last day of the twenty-fourth month from the date of
purchase will be subject to a redemption charge equal to 1% of the Net
Asset Value of a Unit on the Redemption Date. Units redeemed after the
last day of the twenty-fourth month from the date of purchase will not be
subject to a redemption charge.
Exchanges - On the last day of the first month which occurs more than 180
days after a person first becomes a Limited Partner in any of the
Partnerships, and at the end of each month thereafter, Limited Partners may
transfer their investment among the Partnerships (subject to certain
restrictions outlined in the Limited Partnership Agreement) without paying
additional charges.
Dissolution of the Partnership - Each Partnership will terminate on
December 31, 2035 or at an earlier date if certain conditions occur as
defined in the Partnership's Limited Partnership Agreement.
2. Related Party Transactions
Each Partnership pays brokerage fees to DWR for trades executed on its
behalf as described in Note 1. Each Partnership's cash is on deposit with
DWR and Carr in future interests trading accounts to meet margin
requirements as needed. DWR pays interest on these funds as described in
Note 1.
3. Trading Advisors
Demeter, on behalf of each Partnership, retains certain commodity trading
advisors to make all trading decisions for the Partnerships. The trading
advisors for each Partnership are as follows:
Morgan Stanley Dean Witter Charter Graham L.P.
Graham Capital Management L.P.
Morgan Stanley Dean Witter Charter Millburn L.P.
Millburn Ridgefield Corporation
Morgan Stanley Dean Witter Charter Welton L.P.
Welton Investment Corporation
Compensation to the trading advisors by the Partnerships consists of
management fees and incentive fees as follows:
Management Fee - Each Partnership pays a flat-rate monthly fee of 1/12 of
2% of the Net Assets under management by each trading advisor as of the
first day of each month (a 2% annual rate).
Incentive Fee - Each Partnership pays a monthly incentive fee equal to 20 %
of "Trading Profits" as of the end of each calendar month. If the Trading
Advisor has experienced losses with respect to Net Assets at the end of
each calendar month, the Trading Advisor must earn back such losses before
the Trading Advisor is eligible for an incentive fee.
