Dean Witter Spectrum Series
Monthly Report
January 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Dean Witter Spectrum
Funds as of January 31, 1999 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $15.99 -0.08%
Spectrum Select $23.11 -2.88%
Spectrum Strategic $11.14 -3.55%
Spectrum Technical $15.32 -4.98%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, relatively flat performance was recorded during the month
primarily due to gains from long positions in global stock index futures,
namely the S&P 500 and German DAX Index. Towards month-end, domestic
equity prices were lifted higher on economic data indicating a healthy U.S.
economy and German stock markets rose on Wall Street's gains. In global
interest rate futures, long European bond futures positions produced
profits as prices rose due to a "flight-to-quality" on mid-month anxiety
related to Brazil's economic crisis. A portion of the Fund's overall gains
was offset by losses in currencies from long Mexican peso positions as the
value of the peso moved sharply lower versus the U.S. dollar early in the
month on the news of the deepening of Brazil's financial crisis.
Additional losses were recorded in soft commodities from long sugar futures
positions as prices fell on concerns regarding the effect that Brazil's
turmoil would have on supply and demand. In agricultural futures, short
hog and cattle futures positions also experienced losses as prices in these
markets moved sharply higher on concerns that winter storms would hurt
supplies, an increase in demand and plans for government aid programs to
help struggling farmers. Gains from short soybean oil futures positions
helped mitigate a portion of the losses in livestock futures as soybean
prices slipped to 11-year lows on good growing weather in South America and
speculation that Brazil would increase exports. Smaller losses were
experienced in metals from long nickel futures positions as nickel prices
fell on renewed concerns about Asia and in energies from short crude oil
futures positions as oil prices reached seven-week highs during the first
week of January due to cold weather across the U.S., a large drawdown in
U.S. crude stocks and continuing tensions between Iraq and the U.N.
In Spectrum Select, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, losses were recorded
primarily in the currency markets from long Mexican peso positions as the
value of the peso moved sharply lower relative to the U.S. dollar on
Brazil's economic troubles. Long Japanese yen positions also proved
unfavorable after intervention by the Bank of Japan boosted the U.S. dollar
against the yen and helped ease concerns about the impact of a strong yen
on Japanese exports. In interest rate futures, additional losses resulted
from short positions in Japanese bond futures amid a "flight-to-quality"
sell-off in global stock prices during mid-month. Long positions in
European stock index futures also resulted in additional losses as Brazil's
economic travails hit stock markets in Europe during mid-month. Smaller
losses were recorded in energies from short futures positions in crude oil
and its refined products, heating oil and unleaded gas. Oil prices reached
seven-week highs during the first week of January due to cold weather
across the U.S., a large drawdown in U.S. crude stocks and continuing
tensions between Iraq and the U.N. In soft commodities, smaller losses
were experienced from long coffee and sugar futures positions as prices in
these markets fell on concerns regarding the impact that Brazil's turmoil
would have on supply and demand. A portion of the Fund's overall losses
was offset by gains in agricultural futures from short futures positions in
soybean and soybean products. Soybean prices moved lower on reports of
record plantings in the U.S., as well as on good growing weather in South
America and speculation that Brazil will increase soybean exports to aid
its ailing economy. Smaller gains were recorded in metals from short
copper and aluminum futures positions reflecting concerns about the
worldwide economic slowdown and increased supplies.
In Spectrum Strategic, a Fund managed by three trading advisors who employ
fundamental trading methodologies, losses were recorded primarily in
interest rate futures from short U.S. bond futures as prices increased due
to a "flight-to-quality" in reaction to Brazil's economic crisis. Profits
from long positions in European stock index futures amid comforting month-
end economic reform moves in Asia and Brazil helped mitigate a portion of
the losses in this market
<PAGE>
sector. Additional losses were recorded in currencies from long Japanese
yen positions after intervention by the Bank of Japan boosted the U.S.
dollar against the yen and helped ease concerns about the impact of a
strong yen on Japanese exports. In soft commodities, long cocoa futures
positions experienced losses as prices sank on Friday, January 22 reaching
the lowest price since March 1997 as the market seemed to ignore the mildly
bullish report of increased U.S. consumption in the fourth quarter.
Smaller losses in metals resulted from long gold futures positions as
precious metals prices sank as the U.S. dollar's sharp rebound from a 28-
month low against the yen during mid-month spurred a wave of profit taking.
A portion of the Fund's overall losses was offset by gains in the energy
markets from long crude oil futures positions. Oil prices reached seven-
week highs during the first week in January due to cold weather across the
U.S., a large drawdown in U.S. crude stocks and continuing tensions between
Iraq and the U.N. Additional gains were recorded in agricultural futures
from short soybean futures positions as prices slipped to 11-year lows due
to good growing conditions in South America and speculation that Brazil
will increase soybean exports to aid its ailing economy.
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, losses were recorded
primarily in the currency markets from long Japanese yen positions as the
value of the yen, despite reaching a 27-month high in early January,
reversed sharply lower after the Bank of Japan intervened in an effort to
keep Japanese exports affordable. The yen continued to move lower versus
the dollar during the latter half of the month on concerns regarding the
Brazilian economy, the possibility of a devaluation of the Chinese yuan and
strong economic data out of the United States. Short British pound
positions produced additional losses as the value of the U.S. dollar
weakened versus the pound on concerns regarding Brazil's deepening
financial crisis. Losses were also experienced in global stock index
futures from short Nikkei Index futures positions as Japanese equity prices
increased on news and talks of mergers and tie-ups within the Japanese
banking sector. Short positions in Japanese and Australian interest rate
futures produced additional losses as prices increased amid a sell-off in
global prices during mid-month and a "flight-to-quality" due to renewed
financial-market turmoil in Brazil. Profits from long positions in German
government bond futures, considered a "safe haven" amid Brazil's economic
crisis, helped mitigate a portion of the losses in the the Japanese and
Australian interest rate markets. In livestock futures, losses were
experienced from short hog and cattle futures positions as prices in both
markets moved sharply higher due to the effects of winter storms on
supplies, an increase in demand and plans for government aid programs to
help aid struggling farmers. Gains from short futures positions in soybean
and soybean products helped to offset a portion of the losses in livestock
as soybean prices slipped to 11-year lows on good growing weather in South
America and speculation that Brazil would increase exports. In soft
commodities, losses resulted from long coffee and sugar futures positions
as prices dropped on fears spurred by the collapse of the Brazilian real.
A portion of the Fund's overall losses was offset by gains in metals from
short copper and aluminum futures positions as prices declined on a large
rise in copper warehouse stocks and an aluminum supply surplus.
Effective as of the close of business on December 31, 1998, several changes
in the officer and director positions of Demeter Management Corporation
("Demeter") were made in light of recent personnel changes within our firm,
Morgan Stanley Dean Witter ("MSDW"). Mr. Richard DeMartini has new
international responsibilities within MSDW and has resigned as Chairman and
Director of Demeter. Mr. Mark Hawley, previously President of Demeter, was
elected as Chairman and Mr. Robert Murray was elected as President. In
addition, Mr. Lawrence Volpe resigned as a Director to Demeter and Mr.
Lewis Raibley was elected to Demeter's Board of Directors.
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>
<TABLE>
Historical Fund Performance
Presented below is the percentage change in Net Asset Value per Unit from
the start of each calendar year the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for the
Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
<CAPTION>
Funds Year Return
<S> <C> <C>
Spectrum Global Balanced
1994 (2 months) -1.7%
1995 22.8%
1996 -3.6%
1997 18.2%
1998 16.4%
1999 (1 month) -0.1%
Inception-to-Date Return: 59.9%
Annualized Return: 11.7%
___________________________________________________________________________
__________
Spectrum Select
1991 (5 months) 31.2%
1992 -14.4%
1993 41.6%
1994 -5.1%
1995 23.6%
1996 5.3%
1997 6.2%
1998 14.2%
1999 (1 month) -
2.9%
Inception-to-Date Return: 131.1%
Annualized Return 11.8%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 (1 month) -3.5%
Inception-to-Date Return: 11.4%
Annualized Return: 2.6%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 (1 month) -
5.0%
Inception-to-Date Return: 53.2%
Annualized Return: 10.6%
___________________________________________________________________________
__________
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended January 31, 1999
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced Dean Witter Spectrum Select
Percent of
Percent of
January 1, 1999
January 1, 1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized (175,148) (0.38) (2,174,859)
(1.09)
Net change in unrealized 193,707 0.42 (2,463,009)
(1.23)
Total Trading Results 18,559 0.04 (4,637,868)
(2.32)
Interest Income (DWR) 170,198 0.37
583,723 0.29
Total Revenues 188,757 0.41
(4,054,145) (2.03)
EXPENSES
Brokerage fees (DWR) 176,002 0.38 1,208,833
0.60
Management fees 47,827 0.11
500,207 0.25
Total Expenses 223,829 0.49
1,709,040 0.85
NET LOSS (35,072) (0.08)
(5,763,185) (2.88)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended January 31, 1999
(Unaudited)
Dean Witter Spectrum Global Balanced Dean
Witter Spectrum Select .
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
January 1, 1999 2,869,073.505 45,913,872 16.00 8,407,766.751
200,082,516 23.80
Net Loss - (35,072) (0.01) -
(5,763,185) (0.69)
Redemptions (12,308.742) (196,817) 15.99 (52,743.108)
(1,218,893) 23.11
Subscriptions 68,537.807 1,095,920 15.99 158,558.688
3,664,291 23.11
Net Asset Value,
January 31, 1999 2,925,302.570 46,777,903 15.99 8,513,582.331
196,764,729 23.11
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended Jauary 31, 1999
(Unaudited)
<CAPTION>
Dean Witter
Spectrum Strategic Dean Witter Spectrum Technical.
Percent of
Percent of
January 1, 1999
January 1, 1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
<S> <C> <C> <C>
<C>
REVENUES
Trading Profit (Loss):
Realized 1,771,163 2.52 (9,042,259)
(3.54)
Net change in unrealized (3,819,980) (5.42)
(2,001,089) (0.78)
Total Trading Results (2,048,817) (2.90)
(11,043,348) (4.32)
Interest Income (DWR) 204,313 0.29
720,149 0.28
Total Revenues (1,844,504) (2.61)
(10,323,199) (4.04)
EXPENSES
Brokerage fees (DWR) 425,465 0.61 1,541,238
0.61
Management fees 229,261 0.33 850,338
0.33
Total Expenses 654,726 0.94 2,391,576
0.94
NET LOSS (2,499,230) (3.55) (12,714,775)
(4.98)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended January 31, 1999
(Unaudited)
Dean Witter Spectrum Strategic Dean Witter
Spectrum Technical
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
Net Asset Value,
January 1, 1999 6,096,199.701 70,421,775 11.55 15,824,199.968
255,101,434 16.12
Net Loss - (2,499,230) (0.41) -
(12,714,775) (0.80)
Redemptions (37,567.107) (418,498) 11.14 (87,751.806)
(1,344,358) 15.32
Subscriptions 89,451.208 996,486 11.14 412,053.888
6,312,666 15.32
Net Asset Value,
January 31, 1999 6,148,083.802 68,500,533 11.14 16,148,502.050
247,354,967 15.32
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Dean Witter Spectrum Global Balanced L.P.
(formally known as Dean Witter Spectrum Balanced
L.P.)("Spectrum Balanced"), Dean Witter Spectrum Select L.P.
(formally known as Dean Witter Select Futures Fund L.P.)
("Spectrum Select"), Dean Witter Spectrum Strategic L.P.
("Spectrum Strategic") and Dean Witter Spectrum Technical L.P.
("Spectrum Technical") (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 futures interests, including foreign
currencies, financial instruments, precious and industrial
metals, energy products, and agriculturals (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")
an affiliate of Demeter. The clearing commodity broker is Carr
Futures Inc. ("Carr"), providing clearing and execution
services. Both Demeter and DWR are wholly-owned subsidiaries of
Morgan Stanley Dean Witter & Co. ("MSDW").
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 pays each Partnership interest income based upon
80% of its average daily "Net Assets" (as defined in the
limited partnership agreements), for the month in the case of
Spectrum Select, Spectrum Strategic and Spectrum Technical and
100% in the case of Spectrum Balanced. The interest rate is
equal to a prevailing rate on U.S. Treasury Bills. 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 Fees and Related Transaction Fees and Costs -
Brokerage fees for Spectrum Balanced are accrued at a monthly
rate of 1/12 of 4.60% of the Net Assets as of the first day of
each month.
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a monthly rate of 1/12 of
7.25% of the Net Assets as of the first day of each month.
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements -
(Continued)
Such fees will cover all brokerage fees, transaction fees and
costs and ordinary administrative and continuing offering
expenses.
Operating Expenses - Spectrum Balanced, Spectrum Strategic and
Spectrum Technical, incur monthly management fees and may incur
incentive fees. All common administrative and continuing
offering expenses including legal, auditing, accounting, filing
fees and other related expenses are borne by DWR through the
brokerage fees paid by each Partnership.
Spectrum Select bears all operating expenses related to its
trading activities, to a maximum of 1/4 of 1% annually of the
Partnership's average month end Net Assets. In addition, the
Partnership incurs a monthly management fee and may incur an
incentive fee. Demeter bears all other operating expenses.
All common administrative and continuing offering expenses are
be borne by DWR through the brokerage fees.
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 Asset Value per Unit as of the
opening of business on the first day of the month. No selling
commissions or charges related to the continuing offering of
Units will be paid by the Limited Partners or the Partnership.
DWR will pay all such costs.
Redemptions - Limited Partners may redeem some or all of their
Units at 100% of the Net Asset Value Per Unit as of the end of
the last day that is six months after the closing at which a
person becomes a Limited Partner, upon five business days
advance notice by redemption form to Demeter. Thereafter,
Units redeemed on or prior to the last day of the twelfth month
after such Units were purchased will be subject to a redemption
charge equal to 2% of the Net Asset Value of a Unit on the date
of such redemption. Units redeemed after the last day of the
twelfth month and on or prior to the last day of the twenty-
fourth month after which such Units were purchased will be
subject to a redemption charge equal to 1% of the Net Asset
Value of a Unit on the date of such redemption. Units redeemed
after the last day of the twenty-fourth month after which such
Units were purchased will not be subject to a redemption
charge. The foregoing redemptions charges will be paid to DWR.
Redemptions must be made in whole Units, in a minimum amount of
50 Units, unless a Limited Partner is redeeming his entire
interest in a Partnership.
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Exchanges - On the last day of the first month, which occurs
more than six months after a person first becomes a Limited
Partner in any of the Partnerships, and the end of each month
thereafter, Limited Partners may exchange their investment
among the Partnerships (subject to certain restrictions
outlined in the Limited Partnership Agreement) without paying
additional charges.
Dissolution of the Partnership - Spectrum Balanced, Spectrum
Strategic and Spectrum Technical will terminate on December 31,
2035 and Spectrum Select will terminate on December 31, 2025
regardless of financial condition at such time, or at an
earlier date if certain conditions occur as defined in each
Partnership's Limited Partnership Agreement.
2. Related Party Transactions
Each Partnership pays brokerage fees to DWR as described in
Note 1. Each Partnership's cash is on deposit with DWR and Carr
in futures interests trading accounts to meet margin
requirements as needed. DWR pays interest on these funds as
described in Note 1. Each Partnership is authorized to issue
and sell Units at Monthly Closings at a price per Unit equal to
100% of the Net Asset Value of a Unit of such Partnership as of
the close of business on the date of such monthly closing.
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:
Dean Witter Spectrum Global Balanced L.P.
RXR, Inc.
Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
Stonebrook Capital Management, Inc.
Willowbridge Associates Inc.
Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.
Chesapeake Capital Corporation
John W. Henry & Company, Inc. ("JWH")
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as follows:
Management Fee - The management fee is accrued to Spectrum
Balanced at a rate of 5/48 of 1% of the Net Assets on the first
day of each month (a 1.25% annual rate).
Management fees are accrued to Spectrum Technical at a rate of
1/3 of 1% per month of the Net Assets allocated to each trading
advisor on the first day of each month (a 4% annual rate).
Management fees are accrued to Spectrum Select at a rate of one fourth
of 1% per month of the Net Assets allocated to each trading
advisor on the first day of each month (a 3% annual rate).
Management fees are accrued to Spectrum Strategic at a rate of
1/12 of 4% of the Net Assets allocated to each of Blenheim and
Willowbridge on the first day of each month, and 1/12 of 3% of
the Net Assets allocated to Stonebrook on the first day of each
month.
Incentive Fee - Spectrum Balanced, Spectrum Strategic and
Spectrum Select pay a monthly incentive fee equal to 15% of the
"Trading Profits" as defined in their Limited Partnership
Agreements, experienced with respect to each trading advisor's
allocated Net Assets as of the end of each calendar month.
Spectrum Technical pays a monthly incentive fee equal to 15% of
the Trading Profits experienced with respect to the Net Assets
allocated to Campbell and JWH as of the end of each calendar
month, and 19% of the Trading Profits experienced with respect
to the Net Assets allocated to Chesapeake as of the end of each
calendar month.
For all Partnerships, if a trading advisor has experienced
"Trading Losses" with respect to their allocated Net Assets at
the time of a supplemental closing, the trading advisor must
earn back such losses plus a pro-rata amount related to the
funds allocated to the trading advisor at supplemental closing
before the trading advisor is eligible for an incentive fee.
