UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the period ended September 30, 1997 or
[ ] Transition report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the transition period _________________to______________.
Commission File Number 0-15442
DEAN WITTER CORNERSTONE FUND IV
(Exact name of registrant as specified in its charter)
New York 13-3393597
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification
No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
September 30, 1997 (Unaudited) and December 31, 1996.......2
Statements of Operations for the Quarters Ended
September 30, 1997 and 1996 (Unaudited)....................3
Statements of Operations for the Nine Months Ended
September 30, 1997 and 1996 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 1997 and 1996
(Unaudited)................................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1997 and 1996 (Unaudited)....................6
Notes to Financial Statements...........................7-12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...............13-18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings................................19-20
Item 2. Changes in Securities and Use of Proceeds........20-22
Item 5. Other Information...................................22
Item 6. Exhibits and Reports on Form 8-K....................23
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 104,953,883 91,656,399
Net unrealized gain on open contracts 3,312,263 5,330,520
Total Trading Equity 108,266,146 96,986,919
Interest receivable (DWR) 343,432 305,391
Total Assets 108,609,578 97,292,310
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 805,161 1,269,513
Accrued management fees 360,288 322,552
Common administrative expenses payable 162,883 126,007
Accrued brokerage commissions (DWR) - 74,340
Accrued transaction fees and costs - 3,654
Total Liabilities 1,328,332 1,796,066
Partners' Capital
Limited Partners (26,475.006 and
29,160.287 Units, respectively) 104,753,361 93,448,822
General Partner (638.889 Units) 2,527,885 2,047,422
Total Partners' Capital 107,281,246 95,496,244
Total Liabilities and Partners' Capital 108,609,578 97,292,310
NET ASSET VALUE PER UNIT 3,956.69 3,204.66
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 8,859,251 (3,667,691)
Net change in unrealized 3,583,478 (914,027)
Total Trading Results 12,442,729 (4,581,718)
Interest Income (DWR) 1,041,011 956,468
Total Revenues 13,483,740 (3,625,250)
EXPENSES
Management fees 1,078,113 913,789
Brokerage commissions (DWR) 667,208 1,014,337
Transaction fees and costs 50,595 64,627
Common administrative expenses 37,749 20,804
Total Expenses 1,833,665 2,013,557
NET INCOME (LOSS) 11,650,075 (5,638,807)
NET INCOME (LOSS) ALLOCATION
Limited Partners 11,381,929 (5,529,511)
General Partner 268,146 (109,296)
NET INCOME (LOSS) PER UNIT
Limited Partners 419.71 (171.07)
General Partner 419.71 (171.07)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 26,063,854 (289,827)
Net change in unrealized (2,018,257) 1,595,086
Total Trading Results 24,045,597 1,305,259
Interest Income (DWR) 3,089,288 2,995,868
Total Revenues 27,134,885 4,301,127
EXPENSES
Management fees 3,130,872 2,944,036
Brokerage commissions (DWR) 2,145,802 2,902,879
Transaction fees and costs 141,554 173,838
Common administrative expenses 108,287 38,947
Total Expenses 5,526,515 6,059,700
NET INCOME (LOSS) 21,608,370 (1,758,573)
NET INCOME (LOSS) ALLOCATION
Limited Partners 21,127,907 (1,720,069)
General Partner 480,463 (38,504)
NET INCOME (LOSS) PER UNIT
Limited Partners 752.03 (60.26)
General Partner 752.03 (60.26)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1995 36,544.514 $101,854,654 $1,812,357 $103,667,011
Offering of Units 29.206 83,657 - 83,657
Net Loss - (1,720,069) (38,504) (1,758,573)
Redemptions (5,113.602) (14,644,172) - (14,644,172)
Partners' Capital
September 30, 1996 31,460.118 $85,574,070 $1,773,853 $87,347,923
Partners' Capital
December 31, 1996 29,799.176 $93,448,822 $2,047,422 $95,496,244
Offering of Units 17.979 63,963 - 63,963
Net Income - 21,127,907 480,463 21,608,370
Redemptions (2,703.260) (9,887,331) - (9,887,331)
Partners' Capital
September 30, 1997 27,113.895 $104,753,361 $2,527,885 $107,281,246
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 21,608,370 (1,758,573)
Noncash item included in net income (loss):
Net change in unrealized 2,018,257 (1,595,086)
(Increase) decrease in operating assets:
Interest receivable (DWR) (38,041) 58,961
Due from DWR - (40,924)
Increase (decrease) in operating liabilities:
Accrued management fees 37,736 (50,574)
Common administrative expenses payable 36,876 (104,751)
Accrued brokerage commissions (DWR) (74,340) 45,540
Accrued transaction fees and costs (3,654) 2,861
Net cash provided by (used for) operating activities 23,585,204 (3,442,546)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of units 63,963 83,657
Increase (decrease) in redemptions payable (464,352) 1,146,969
Redemptions of units (9,887,331) (14,644,172)
Net cash used for financing activities (10,287,720) (13,413,546)
Net increase (decrease) in cash 13,297,484 (16,856,092)
Balance at beginning of period 91,656,399 104,927,961
Balance at end of period 104,953,883 88,071,869
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements include, in the opinion of management,
all adjustments necessary for a fair presentation of the results
of operations and financial condition. The financial statements
and condensed notes herein should be read in conjunction with the
Partnership's December 31, 1996 Annual Report on Form 10-K.
1. Organization
Dean Witter Cornerstone Fund IV (the "Partnership") is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts and forward contracts on foreign
currencies (collectively, "futures interests"). The Partnership
is one of the Dean Witter Cornerstone Funds, comprised of Dean
Witter Cornerstone Fund II, Dean Witter Cornerstone Fund III, and
Dean Witter Cornerstone Fund IV. The general partner for the
Partnership is Demeter Management Corporation ("Demeter"). The
commodity broker for most of the Partnership's transactions is
Dean Witter Reynolds Inc. ("DWR"). Both Demeter and DWR are
wholly owned subsidiaries of Morgan Stanley, Dean Witter,
Discover & Co. ("MSDWD"). The trading advisors who make all
trading decisions for the Partnership are John W. Henry &
Company, Inc. ("JWH") and Sunrise Capital Management.
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On July 31, 1997, DWR closed the sale of its institutional
futures business and foreign currency trading operations to Carr
Futures Inc. ("Carr"), a subsidiary of Credit Agricole Indosuez.
Following the sale, Carr became the counterparty on the
Partnership's foreign currency trades. However, during a
transition period of about four months, DWR will continue to
perform certain services relating to the Partnership's futures
trading including clearance. After such transition period, DWR
will continue to serve as a non-clearing commodity broker for the
Partnership with Carr providing all clearing services for
Partnership transactions.
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in
commodity trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
Treasury Bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices and currencies. Futures and forwards
represent contracts for delayed delivery of an instrument at a
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
specified date and price. Risk arises from changes in the value
of these contracts and the potential inability of counterparties
to perform under the terms of the contracts. There are numerous
factors which may significantly influence the market value of
these contracts, including interest rate volatility. At
September 30, 1997 and December 31, 1996, open contracts were:
Contract or Notional Amount
September 30, 1997 December 31, 1996
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase - 93,583,000
Commitments to Sell - 118,029,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 241,688,000 208,140,000
Commitments to Sell 387,427,000 205,227,000
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward
commitments to purchase and to sell the same currency on the same
date in the future. These commitments are economically
offsetting, but are not offset in the forward market until the
settlement date.
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The net unrealized gains (losses) on open contracts are reported
as a component of "Equity in Commodity futures trading accounts"
on the Statements of Financial Condition and totaled $3,312,263
and $5,330,520 at September 30, 1997 and December 31, 1996
respectively. The entire $3,312,263 net unrealized gain on open
contracts at September 30, 1997, related to off-exchange-traded
forward currency contracts. Of the $5,330,520 net unrealized
gain on open contracts at December 31, 1996, $5,350,525 related
to exchange-traded futures contracts and $(20,005) related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
December 31, 1996 mature through March 1997. Off-exchange-traded
forward currency contracts held by the Partnership at September
30, 1997 and December 31, 1996 mature through December 1997 and
March 1997, respectively. The contract amounts in the above
table
represent the Partnership's extent of involvement in the
particular class of financial instrument, but not the credit risk
associated with counterparty nonperformance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial Condition.
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Partnership also has credit risk because either DWR or Carr
acts as the Futures Commission Merchant or the counterparty, with
respect to most of the Partnership's assets. Exchange-traded
futures contracts are marked to market on a daily basis, with
variations in value settled or charged to the Fund's account on a
daily basis. DWR, as the futures commission merchant for all of
the Partnership's exchange-traded futures contracts, is required
pursuant to regulations of the Commodity Futures Trading
Commission ("CFTC") to segregate from its own assets and for the
sole benefit of its commodity customers, all funds held by DWR
with respect to exchange-traded futures contracts including an
amount equal to the net unrealized gain or losses on all open
futures contracts which funds totaled $104,846,699 and
$97,006,924 at September 30, 1997 and December 31, 1996,
respectively. With respect to the Partnership's off-exchange-
traded forward currency contracts, there are no daily settlements
of variations in value nor is there any requirement that an
amount equal to the net unrealized gain on open forward contracts
be segregated. With respect to those off-exchange-traded forward
currency contracts, the Partnership is at risk to the ability of
Carr, the sole counterparty on all such contracts, to perform.
Carr's parent, Credit Agricole Indosuez, has guaranteed Carr's
obligations to the Partnership.
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
For the nine months ended September 30, 1997 and the year ended
December 31, 1996, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 44,211,000 74,851,000
Off-Exchange-Traded Forward
Currency Contracts 268,147,000 374,805,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 67,114,000 125,331,000
Off-Exchange-Traded Forward
Currency Contracts 334,452,000 334,461,000
<PAGE>
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity. The Partnership's assets are deposited in futures
interest trading accounts with DWR and Carr, and are used by the
Partnership as margin to engage in futures interest trading. DWR
and Carr hold such assets in either designated depositories or in
securities approved by the CFTC for investment of customer funds.
The Partnership's assets held by DWR and Carr may be used as
margin solely for the Partnership's trading. Since the
Partnership's sole purpose is to trade in futures interests, it
is expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in futures interest may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits". Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price of a particular futures has
increased or decreased by an amount equal to the "daily limit",
positions in such futures interest can neither be taken nor
liquidated unless traders are willing to effect trades at or
within the limit. Futures interest prices have occasionally
moved the daily limit for several consecutive days with little or
no
<PAGE>
trading. Such market conditions could prevent the Partnership
from promptly liquidating its futures interests and result in
restrictions on redemptions. However, since the commencement of
trading by the Partnership, there has never been a time when
illiquidity has affected a material portion of the Partnership's
assets.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in profitable markets or
prevent the Partnership from promptly liquidating unfavorable
positions in such markets and subjecting it to substantial
losses.
Either of these market conditions could result in restrictions on
redemptions.
Capital Resources The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions and exchanges of
Units of limited partnership interest in the future will affect
the amount of funds available for investments in futures
interests in subsequent periods. As redemptions are at the
discretion of the Limited Partners, it is not possible to
estimate the amount and therefore, the impact of future
redemptions.
<PAGE>
Results of Operations
For the Quarter and Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership's total
trading revenues net of interest income were $13,483,740. During
the third quarter, the Partnership posted an increase in Net
Asset Value per Unit. The most significant gains were recorded
from short positions in the Malaysian ringgit as its value
decreased relative to the U.S. dollar throughout the quarter.
Additional currency gains were recorded during July as the value
of the U.S. dollar strengthened relative to most major world
currencies. A portion of the Partnership's overall gains for the
quarter was offset by losses recorded from transactions involving
the Japanese yen and British pound as the value of these
currencies moved without consistent direction during a majority
of the quarter. Total expenses for the period were $1,833,665,
resulting in net income of $11,650,075. The value of an
individual Unit in the Partnership increased from $3,536.98 at
June 30, 1997 to $3,956.69 at September 30, 1997.
For the nine months ended September 30, 1997, the Partnership's
total trading revenues including interest income were
$27,134,885. During the first nine months of the year, the
Partnership posted an increase in Net Asset Value per Unit. The
most significant gains were recorded from a strong upward trend
in the value of the U.S. dollar versus most other major
currencies during January
<PAGE>
and February. As a result, gains were recorded from short
positions in the Singapore dollar, the German mark, the French
and Swiss francs, and the Japanese yen. The U.S. dollar also
strengthened relative to the German mark, Malaysian ringgit and
Singapore dollar throughout a majority of the third quarter, thus
resulting in additional gains for the Partnership's short foreign
currency positions. A portion of the Partnership's overall gains
was offset by losses experienced from transactions involving the
British pound as its value moved in a trendless pattern relative
to other world currencies during the first nine months of the
year. Total expenses for the period were $5,526,515, resulting
in net income of $21,608,370. The value of an individual Unit in
the Partnership increased from $3,204.66 at December 31, 1996 to
$3,956.69 at September 30, 1997.
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading losses net of interest income were $3,625,250. During
the third quarter, the Partnership posted a decrease in Net Asset
Value per Unit. The most significant losses were recorded in
this currency-only Fund from short Australian dollar positions as
the Australian dollar's value reversed higher versus the U.S.
dollar and other world currencies during August and then moved in
a trendless pattern during September. Additional losses were
<PAGE>
recorded during September from inconsistent movement in the value
of the German mark and Swiss franc relative to the U.S. dollar.
Gains recorded between late August and September from short
Japanese yen positions more than offset losses recorded during
July due to a reversal higher in the value of the yen. Gains
recorded during the latter half of July from long German mark
positions also helped to offset a portion of the Partnership's
losses for the quarter. Total expenses for the quarter were
$2,013,557, resulting in a net loss of $5,638,807. The value of
an individual Unit in the Partnership decreased from $2,947.54 at
June 30, 1996 to $2,776.47 at September 30, 1996.
For the nine months ended September 30, 1996, the Partnership's
total trading revenues including interest income were $4,301,127.
During the first nine months, the Partnership posted a decrease
in Net Asset Value per Unit. Trading gains during the first nine
months were offset by brokerage commissions resulting in net
trading losses. The most significant losses were recorded from
transactions involving the German mark as its value lacked
consistent direction during August and September. Additional
losses were recorded from transactions involving the Singapore
dollar throughout the first quarter. Smaller losses were
recorded across most major world currencies during February due
to sharp reversals in value versus the U.S. dollar. A portion of
these losses was offset by gains recorded from short positions in
the
<PAGE>
Japanese yen as the value of the yen moved primarily lower versus
the U.S. dollar. Long positions in the Australian dollar also
profited as its value moved higher relative to other world
currencies from February to mid-May, thus mitigating losses
recorded elsewhere during the year. Total expenses for the
period were $6,059,700, resulting in a net loss of $1,758,573.
The value of an individual Unit in the Partnership decreased from
$2,836.73 at December 31, 1995 to $2,776.47 at September 30,
1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997, similar
purported class actions were filed in the Supreme Court of the
State of California, County of Los Angeles, on behalf of all
purchasers of interests in limited partnership commodity pools
sold by DWR. Named defendants include DWR, Demeter, Dean Witter
Futures & Currency Management, Inc., MSDWD (all such parties
referred to hereafter as the "Dean Witter Parties"), the
Partnership, certain other limited partnership commodity pools of
which Demeter is the general partner, and certain trading
advisors (including JWH) to those pools. On June 16, 1997, the
plaintiffs in the above actions filed a consolidated amended
complaint. Similar purported class actions were also filed on
September 18 and 20, 1996 in the Supreme Court of the State of
New York, New York County, and on November 14, 1996 in the
Superior Court of the State of Delaware, New Castle County,
against the Dean Witter Parties and certain trading advisors
(including JWH) on behalf of all purchasers of interests in
various limited partnership commodity pools, including the
Partnership, sold by DWR. Generally, these complaints allege,
among other things, that the defendants committed fraud, deceit,
misrepresentation, breach of fiduciary duty, fraudulent and
unfair business practices, unjust
<PAGE>
enrichment, and conversion in connection with the sale and
operation of the various limited partnership commodity pools.
The complaints seek unspecified amounts of compensatory and
punitive damages and other relief. It is possible that
additional similar actions may be filed and that, in the course
of these actions, other parties could be added as defendants.
The Dean Witter Parties believe that they and the Partnership
have strong defenses to, and they will vigorously contest, the
actions. Although the ultimate outcome of legal proceedings
cannot be predicted with certainty, it is the opinion of
management of the Dean Witter Parties that the resolution of the
actions will not have a material adverse effect on the financial
condition or the results of operations of any of the Dean Witter
Parties or the Partnership.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Dean Witter Cornerstone Fund I ("Cornerstone I"); Dean Witter
Cornerstone Fund II ("Cornerstone II"), and Dean Witter
Cornerstone III ("Cornerstone III") collectively registered
250,000 Units of Limited Partnership Interest ("Units") pursuant
to a Registration Statement on Form S-1, which became effective
on May 31, 1984 (the "Registration Statement") (SEC File Numbers
2-88587; 88587-01; 88587-02). As contemplated in the
Registration Statement, an additional fund, Dean Witter
Cornerstone Fund IV ("Cornerstone IV" and, collectively with
Cornerstone I,
<PAGE>
Cornerstone II and Cornerstone III, the "Partnerships") was
registered pursuant to Post-Effective Amendment No. 5 to the
Registration Statement, which became effective on February 6,
1987. The managing underwriter for the Partnerships is DWR.
The offering for Cornerstone I originally commenced on May 31,
1984, and 18,679.643 Units of Cornerstone I were sold prior to
its dissolution on December 31, 1991. The offering for
Cornerstone II and Cornerstone III also originally commenced on
May 31, 1984 and currently continues, with 41,693.538 and
74,400.002 Units of Cornerstone II and Cornerstone III,
respectively, sold through September 30, 1997. The offering for
Cornerstone IV originally commenced on February 6, 1987 and
currently continues, with 100,550.782 Units sold through
September 30, 1997. Through September 30, 1997, an aggregate of
235,323.965 Units of the Partnership have been sold, leaving
14,676.035 Units remaining available for sale as of October 1,
1997.
The aggregate offering amount registered was $262,496,000, based
upon the initial offering price of $1,050 per Unit ($1,000
initial Net Asset Value per Unit, plus a $50 per Unit sales
charge on all but 80 Units sold to the Partnerships' initial
trading managers) during the Initial Offering Periods of May 31,
1984 through November 30, 1984 with respect to Cornerstone I,
Cornerstone II
<PAGE>
and Cornerstone III, and February 6, 1987 through May 6, 1987
with respect to Cornerstone IV.
After the respective Initial Offering Periods, Units in the
Partnerships were sold at 107.625% of Net Asset Value per Unit,
including a charge for offering expenses of 2.5% of Net Asset
Value per Unit, and a sales charge of 5% of the sum of the Net
Asset Value per Unit and the charge for offering expenses, during
the "Continuing Offering".
The aggregate price of Units sold through September 30, 1997 with
respect to Cornerstone IV is $167,625,393.
Effective September 30, 1994, Cornerstone II, Cornerstone III and
Cornerstone IV were closed to new investors; Units have been sold
since then solely in "Exchanges" with existing investors, at 100%
of Net Asset Value per Unit. DWR has been paying all expenses in
connection with the offering of Units since September 30, 1994,
without reimbursement.
Item 5. OTHER INFORMATION
On July 21, 1997, MSDWD, the sole shareholder of Demeter,
appointed a new Board of Directors consisting of Richard M.
DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph G. Siniscalchi,
Edward C. Oelsner III, and Robert E. Murray.
<PAGE>
Item 6. - EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dean Witter Cornerstone Fund IV
(Registrant)
By: Demeter Management Corporation
(General Partner)
November 12, 1997 By: /s/ Patti L. Behnke
Patti L. Behnke
Chief Financial Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Cornerstone Fund IV and is qualified in its entirety by reference
to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<CASH> 104,953,883
<SECURITIES> 0
<RECEIVABLES> 343,432<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 108,609,578<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 108,609,578<F3>
<SALES> 0
<TOTAL-REVENUES> 27,134,885<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5,526,515
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,608,370
<INCOME-TAX> 0
<INCOME-CONTINUING> 21,608,370
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,608,370
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $3,312,263.
<F2>Liabilities include redemptions payable of $805,161, accrued management
fees of $360,288 and common administrative expenses payable of $162,883.
<F3>Total revenue includes realized trading revenue of $26,063,854, net
change in unrealized of $(2,018,257) and interest income of $3,089,288.
<F4>Total revenue includes realized trading revenue of $26,063,854, net
change in unrealized of $(2,018,257) and interest income of $3,089,288.
</FN>
</TABLE>
