Morgan Stanley Dean Witter Spectrum Series
Monthly Report
August 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Morgan Stanley Dean
Witter Spectrum Funds as of August 31, 1999 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $15.87 -0.18%
Spectrum Select $22.50 -0.41%
Spectrum Strategic $13.49 5.34%
Spectrum Technical $15.90 0.96%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, small losses were experienced during August primarily in
the global interest rate futures component of the balanced portfolio from
long U.S. interest rate futures positions as prices declined later in the
month after Federal Reserve Chairman Alan Greenspan commented that central
bankers must consider stock prices when setting monetary policy. In the
managed futures component, losses were experienced in the agricultural
markets earlier in the month from short corn futures positions as prices
increased significantly amid drier-than-expected weather in the U.S.
Midwest, forecasts for very little rain and concerns about shriveling
production. A majority of the Fund's overall losses was offset by gains
recorded in the managed futures component, particularly in the energy
markets from long crude and gas oil futures positions as oil prices moved
higher for a majority of the month amid a perceived tightness in the
gasoline market. Oil prices continued to move higher as the earthquake in
Turkey and hurricanes in the Gulf of Mexico triggered fears of production
problems. In the currency markets, gains were recorded from long Japanese
yen positions as the value of the yen increased versus the European common
currency, the euro, on optimism regarding the Japanese economy.
Spectrum Select, a Fund managed by multiple trading advisors who employ
long-term technical trend-following trading strategies, decreased in value
during August as gains recorded in the energy markets were more than offset
by losses incurred in the global interest rate markets. In the global
interest rate futures markets, losses were incurred from short U.S.
interest rate futures positions as U.S. Treasury prices temporarily moved
higher on benign inflation data, a successful corporate bond offering and
the Federal Reserve's decision to raise interest rates. Additional losses
were experienced in the global stock index futures markets from short S&P
500 Index futures positions as domestic stock prices increased during the
first three weeks of August after the Producer Price Index for July showed
that inflation remained under control as the economy continued to grow.
Smaller losses were recorded in the agricultural markets from short soybean
oil futures positions as prices increased significantly amid drier-than-
expected weather in the U.S. Midwest, forecasts for very little rain and
concerns about shriveling production. A majority of the Fund's overall
losses was offset by gains recorded in the energy markets from long futures
positions in crude oil and its refined products, unleaded gasoline and
heating oil, as prices moved higher for a majority of the month amid a
perceived tightness in the gasoline market. Oil prices continued to move
higher as the earthquake in Turkey and hurricanes in the Gulf of Mexico
triggered fears of production problems. Additional gains were recorded in
the currency markets from long Japanese yen positions as the value of the
yen increased versus the U.S. dollar due to positive economic data out of
that country and optimism over Japan's economic recovery. Smaller gains
were experienced in the metals markets from long positions in base metal
futures as prices surged higher.
In Spectrum Strategic, a Fund managed by multiple trading advisors who
employ fundamental trading methodologies, gains were recorded during August
in the energy markets from long futures positions in crude oil and its
refined products, heating oil and gas oil, as prices moved higher amid a
perceived tightness in the gasoline market. Oil prices continued to move
higher as the earthquake in Turkey and hurricanes in the Gulf of Mexico
triggered fears of production problems. In the metals markets, gains were
recorded from long aluminum futures positions as prices increased on
bullish technical factors, speculative buying and on reports of decreasing
supplies. In the global stock index futures markets, gains were recorded
from short S&P 500 Index futures positions as prices dropped later in the
month in reaction to comments by Federal Reserve Chairman Alan Greenspan
that central banks must consider the prices of stocks when setting monetary
<PAGE>
policy and on stronger-than-expected U.S. home sales figures. A portion of
the Fund's overall gains was offset by losses experienced in the
agricultural markets from short positions in soybean futures as prices
increased significantly earlier in the month amid drier-than-expected
weather in the U.S. Midwest, forecasts for very little rain and concerns
about shriveling production. In the currency markets, losses were
experienced from long positions in the European common currency, the euro,
as the value of the U.S. dollar rallied higher versus most European
currencies on Monday, August 23 amid a rally in U.S. stock prices as Wall
Street set aside fears of repeated interest rate hikes a day before the
Federal Reserve raised interest rates. Offsetting gains in this market
complex were recorded from long Japanese yen positions as the value of the
yen increased versus the U.S. dollar due to positive economic data out of
that country and optimism over Japan's economic recovery.
In Spectrum Technical, a Fund managed by multiple trading advisors who
employ long-term technical trend-following trading systems, gains were
recorded during August in the currency markets from long positions in the
Japanese yen as the value of the yen increased versus the U.S. dollar amid
bullish economic data out that country and renewed confidence in the future
of the Japanese economy. Additional gains were experienced in the energy
markets from long crude oil futures positions as prices moved higher amid a
perceived tightness in the gasoline market. Oil prices continued to move
higher as the earthquake in Turkey and hurricanes in the Gulf of Mexico
triggered fears of production problems. Long natural gas futures positions
were also profitable as gas prices moved higher on expectations that
temperatures in key consumption regions could rise and as warm weather
caused utility companies to scramble to meet power demand. Gas prices
rallied to 21-month highs during mid-month on weather forecasts of possible
hurricanes in the Gulf of Mexico. Smaller gains were recorded in the
metals markets from long positions in aluminum futures. In soft
commodities, long sugar futures positions resulted in gains during month-
end as sugar prices raced to 6-month highs on a technical move. A portion
of the Fund's overall gains was offset by losses experienced in the global
interest rate futures markets from short U.S. interest rate futures
positions as U.S. Treasury prices posted temporary gains on benign
inflation data. Additional losses were experienced in the global stock
index futures markets from short ASE All Ordinaries Index futures positions
as prices increased due to a surge on Wall Street and on Australian job
figures that reflected the lowest rate of unemployment in that country in
nine years.
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 each the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for each
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 (8 months) -0.8%
Inception-to-Date Return: 58.7%
Annualized Return: 10.0%
___________________________________________________________________________
__________
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 (8 months) -
5.5%
Inception-to-Date Return: 125.0%
Annualized Return 10.6%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 (8 months) 16.8%
Inception-to-Date Return: 34.9%
Annualized Return: 6.4%
___________________________________________________________________________
_________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 (8 months) -
1.4%
Inception-to-Date Return: 59.0%
Annualized Return: 10.1%
</table<
<PAGE>
</TABLE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended August 31, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter
Morgan Stanley Dean Witter
Spectrum Global
Balanced Spectrum Select
Percent of
Percent of
August 1, 1999 August 1,
1999
Beginning Beginning
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized (1,175,382) (2.17) (223,576)
(0.11)
Net change in unrealized 1,128,270 2.08 500,469
0.24
Total Trading Results (47,112) (0.09) 276,893
0.13
Interest Income (DWR) 212,781 0.39 655,198
0.31
Total Revenues 165,669 0.30 932,091
0.44
EXPENSES
Brokerage fees (DWR) 208,106 0.38 1,262,498
0.60
Management fees 56,551 0.10 522,412
0.25
Incentive fees - -
- - - .
Total Expenses 264,657 0.48 1,784,910
0.85
NET INCOME (LOSS) (98,988) (0.18) (852,819)
(0.41)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended August 31, 1999
(Unaudited)
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Global Balanced Spectrum
Select .
Units Amount Per Unit Units
Amount Per Unit
$ $ $
$
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
August 1, 1999 3,415,370.378 54,289,111 15.90 9,247,947.229
208,965,033 22.60
Net Income (Loss) - (98,988) (0.03) -
(852,819) (0.10)
Redemptions (20,620.113) (327,241) 15.87 (55,985.827)
(1,259,681) 22.50
Subscriptions 77,482.025 1,229,639 15.87 252,633.002
5,684,243 22.50
Net Asset Value,
August 31, 1999 3,472,232.290 55,092,521 15.87 9,444,594.404
212,536,776 22.50
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended August 31, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Strategic
Spectrum Technical .
Percent of
Percent of
August 1, 1999 August 1,
1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 8,262,962 9.92 684,608
0.25
Net change in unrealized (3,157,831) (3.79)
3,683,933 1.34
Total Trading Results 5,105,131 6.13 4,368,541
1.59
Interest Income (DWR) 254,559 0.31
836,122 0.31
Total Revenues 5,359,690 6.44 5,204,663
1.90
EXPENSES
Brokerage fees (DWR) 502,998 0.61 1,656,251
0.61
Management fees 268,792 0.32 913,794
0.33
Incentive fees 144,608 0.17 -
- - .
Total Expenses 916,398 1.10 2,570,045
0.94
NET INCOME (LOSS) 4,443,292 5.34 2,634,618
0.96
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended August 31, 1999
(Unaudited)
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Strategic Spectrum
Technical .
Units Amount Per Unit Units
Amount Per Unit
$ $ $
$
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
August 1, 1999 6,501,660.552 83,254,908 12.81 17,404,430.576
274,138,041 15.75
Net Income (Loss) - 4,443,292 0.68 -
2,634,618 0.15
Redemptions (33,545.832) (452,533) 13.49 (108,540.559)
(1,725,795) 15.90
Subscriptions 111,507.133 1,504,231 13.49 388,871.329
6,183,055 15.90
Net Asset Value,
August 31, 1999 6,579,621.853 88,749,898 13.49 17,684,761.346
281,229,919 15.90
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Spectrum Global
Balanced L.P. ("Spectrum Global Balanced"), Morgan Stanley Dean
Witter Spectrum Select L.P. ("Spectrum Select"), Morgan Stanley
Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic") and
Morgan Stanley Dean Witter Spectrum Technical L.P. ("Spectrum
Technical") (individually, a "Partnership", or collectively,
the "Partnerships") are limited partnerships organized to
engage primarily in the speculative trading of futures and
forward contracts, options on futures contracts and on physical
commodities, and other commodities interests, including, but
not limited to, 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") and an unaffiliated clearing commodity
broker, Carr Futures Inc. ("Carr"), provides clearing and
execution services. Both 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 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 Global 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 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 - Brokerage
fees for Spectrum Global Balanced are accrued at a flat monthly
rate of 1/12 of 4.60% (a 4.60% annual rate) of the Net Assets
as of the first day of each month.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a flat monthly rate of 1/12
of 7.25% (a 7.25% annual rate) of the Net Assets as of the
first day of each month.
Such fee covers all brokerage commissions, transaction fees and
costs and ordinary administrative and continuing offering
expenses.
Operating Expenses - The Partnerships 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.
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
close of business on the last day of the month. No selling
commissions or charges related to the continuing offering of
Units are borne by the Limited Partners or the Partnership.
DWR will pays 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 are 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 are 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 are not subject to a redemption charge. The
foregoing redemptions charges are 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>
Morgan Stanley 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 at the end of each month
thereafter, Limited Partners may exchange their investment
among the Partnerships (subject to certain restrictions
outlined in the Limited Partnership Agreements) without paying
additional charges.
Dissolution of the Partnership - Spectrum Global 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 under certain conditions 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.
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 Spectrum Global Balanced L.P.
RXR, Inc.
Morgan Stanley Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Morgan Stanley Dean Witter Spectrum Strategic L.P.
Allied Irish Capital Management, Ltd. ("AICM")
Blenheim Investments, Inc. ("Blenheim")
Willowbridge Associates Inc. ("Willowbridge")
Demeter has adjusted the allocation of Net Assets among the
trading advisors within Spectrum Strategic. Commencing with
the June 30, 1999 monthly closing, net proceeds received by
Spectrum Strategic at each monthly closing will be allocated
75% to AICM, 0% to Blenheim, and 25% to Willowbridge
Additionally, 100% of redemptions are allocated to Blenheim.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Morgan Stanley Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
Compensation to the trading advisors by the Partnerships
consists of manage-ment fees and incentive fees as follows:
Management Fee - The management fee for Spectrum Global
Balanced is accrued at a rate of 5/48 of 1% of the Net Assets
on the first day of each month (a 1.25% annual rate).
The management fee for Spectrum Select is accrued at a rate of
1/4 of 1% per month of the Net Assets allocated to each trading
advisor on the first day of each month (a 3% annual rate).
The management fee for Spectrum Strategic is accrued 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 AICM on the first day of each
month (annual rates of 4% and 3%, respectively).
The management fee for Spectrum Technical is accrued 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).
Incentive Fee - Spectrum Global Balanced, Spectrum Select and
Spectrum Strategic 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 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 when Trading Losses are incurred, no
incentive fees are paid in subsequent months until the
individual trading advisor recover their losses. Cumulative
trading losses are adjusted on a pro-rata basis for the net
amount of each months subscriptions and redemptions.
