Dean Witter Spectrum Series
Monthly Report
February 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Dean Witter Spectrum
Funds as of February 28, 1999 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $15.98 -0.08%
Spectrum Select $24.37 5.42%
Spectrum Strategic $12.45 11.71%
Spectrum Technical $15.70 2.52%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, relatively flat performance was recorded during the month
as gains in the managed futures component offset losses experienced in the
global stock and bond components. Short futures positions in soybeans and
soybean products profited as prices in these markets declined to 23-year
lows in reaction to a healthy South American crop outlook, weak world
demand and fears that Brazil will flood the market in an effort to support
their ailing economy. In the currency markets, gains were recorded from
short positions in the Singapore dollar as its value slid to a 5-month low
versus the U.S. dollar in reaction to the soft Japanese yen and the
subsequent regional economic concerns in the Pacific Rim. Gains were also
recorded in the metals market from long positions in nickel futures as
prices rose to a nine-month high on reports of a drawdown in inventories.
In soft commodities, gains were recorded from short sugar futures positions
as sugar prices fell to an 11 one half year low in anticipation of a record
harvest in Brazil, an increase in Brazilian exports to aid its ailing
economy and low world demand, particularly in Russia. Offsetting losses
were recorded in the global stock index futures component from long German
stock index futures positions as German equity prices moved lower during
mid-month on concerns regarding the financial stability of Asia, Russia and
Brazil combined with higher global bond yields. Smaller losses were
recorded from long S&P 500 Index futures positions as domestic equity
prices also moved lower amid rising bond yields and on concerns that the
Federal Reserve may raise interest rates in an effort to control inflation.
In the global interest rate futures component of the balanced portfolio,
losses were recorded early in the month from long German government bond
positions as prices declined amid sluggish economic data in Germany.
Smaller losses were recorded from long U.S. interest rate futures positions
as prices dropped in reaction to Federal Reserve Chairman Alan Greenspan's
warnings in Congressional testimony later in the month that a strong
economy could reignite inflation.
In Spectrum Select, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, gains were recorded
during February primarily from short futures positions in soybean and
soybean oil as prices trended steadily lower amid a healthy South American
crop, weak world demand and fears that Brazil will flood the market in an
effort to aid their ailing economy. Additional profits were recorded from
short wheat and corn futures positions on reports of ample supplies and the
prospect of a large U.S. crop this year. In the currency markets, gains
were recorded from short British pound positions as the value of the pound
declined versus the U.S. dollar due to the possibility of an interest rate
cut by the Bank of England and speculation that Great Britain may soon join
the European common currency. Additional gains were recorded from short
positions in the euro as the value of the common European currency fell
versus the U.S. dollar. The euro's weakness was attributed primarily to a
recent economic slowdown in that region and fears that the European Central
Bank would cut interest rates. Gains were also recorded in global interest
rate futures markets from short U.S. interest rate futures positions as
domestic bond prices fell significantly during the month. Strong economic
data and warnings by Federal Reserve Chairman Alan Greenspan that inflation
may be on the horizon for the U.S., pushed bond prices lower and forced
yields higher during the month. In soft commodities, gains were recorded
from short orange juice futures positions as prices plummeted to a 13-month
low during mid-month in response to a USDA report that unexpectedly raised
Florida and U.S. crop estimates. Gains were also recorded in the metals
markets from long positions in silver futures as prices moved sharply
higher early in the month following talk of a reduction in warehouse
stocks, buying by speculative investment funds and rumors that Warren
Buffet may again be participating in the silver market. A portion of the
Fund's overall gains was offset by losses recorded in the global stock
index futures markets from long futures positions in U.S. stock indices as
domestic equity prices finished the month lower amid rising
<PAGE>
bond yields. Concerns that strong economic growth in the U.S. would lead
to an interest rate hike by the Federal Reserve, resulted in this sell-off
in the equity markets.
In Spectrum Strategic, a Fund managed by three trading advisors who employ
fundamental trading methodologies, gains were recorded during February
primarily from short U.S. interest rate futures positions as prices dropped
in reaction to Federal Reserve Chairman Alan Greenspan's warnings in
Congressional testimony that a strong economy could reignite inflation,
thus increasing the prospects of an interest rate hike. Additional gains
were recorded from short German government bond futures positions as bond
prices moved lower on fears the U.S. may raise rates and that rising
Japanese bond yields may attract assets to yen-denominated investments. In
the currency markets, gains were recorded from short positions in the euro
as the value of the common European currency fell versus the U.S. dollar.
The euro's weakness against the dollar was attributed to fears that the
European Central Bank may cut continental interest rates amid a recent
economic slowdown in that region. Strong economic data out of the U.S. and
speculation that the G-7 summit would lead to a stronger dollar also
weighed on the euro. In the global stock index futures markets, gains were
recorded from short positions in S&P 500 Index futures as domestic stock
prices declined as yet another jump in long-term interest rates rattled
Wall Street, prompting investors to question whether the market's
valuations are too lofty. A portion of the Fund's overall gains was offset
by losses recorded in the energy markets from long futures positions in
crude oil and its refined products, unleaded gas and heating oil, as oil
prices declined early in the month on mild U.S. weather conditions. In the
soft commodities markets, losses were experienced from long cocoa futures
positions as prices in this market hit a new contract low during mid-month
on an overabundance of speculative sales.
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, gains were recorded
during February primarily from short futures positions in soybean and
soybean oil as prices trended steadily lower amid a healthy South American
crop, weak world demand and fears that Brazil will flood the market in an
effort to aid their ailing economy. Additional profits were recorded from
short wheat and corn futures positions on reports of ample supplies and the
prospect of a large U.S. crop this year. In the currency markets, gains
were recorded from short British pound positions as the value of the pound
declined versus the U.S. dollar due to the possibility of an interest rate
cut by the Bank of England and speculation that Great Britain may soon join
the European common currency. Additional gains were recorded from short
positions in the euro as the value of the common European currency fell
versus the U.S. dollar. The euro's weakness was attributed primarily to a
recent economic slowdown in that region and fears that the European Central
Bank would cut interest rates. Gains were also recorded in the metals
markets from long positions in silver futures as prices moved sharply
higher early in the month following talk of a reduction in warehouse
stocks, buying by speculative investment funds and rumors that Warren
Buffet may again be participating in the silver market. In soft
commodities, gains were recorded from short cotton futures positions as
cotton prices also declined due to heavy technically based selling and amid
fears that Brazil's financial troubles will have an adverse effect on
supply and demand. A portion of the Fund's overall gains was offset by
losses recorded in the global stock index futures markets from long futures
positions in U.S. stock indices as domestic equity prices finished the
month lower amid rising bond yields. Concerns that strong economic growth
in the U.S. would lead to an interest rate hike by the Federal Reserve,
resulted in this sell-off in the equity markets. Losses were also recorded
in the global interest rate futures markets from long German bond futures
positions as prices declined due to sluggish economic data out of Germany
and amid speculation that Japanese investors would sell international
bonds.
Please be advised that during the month of April the General Partner will
change each Partnership's name as follows: Dean Witter Spectrum Global
Balanced L.P. will become Morgan Stanley Dean Witter Spectrum Global
Balanced L.P., Dean Witter Spectrum Select L.P. will become Morgan Stanley
Dean Witter Spectrum Select L.P., Dean Witter Spectrum Strategic L.P. will
become Morgan Stanley Dean Witter Spectrum Strategic L.P., and Dean Witter
Spectrum Technical L.P. will become Morgan Stanley Dean Witter Spectrum
Technical L.P.
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.
<PAGE>
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 (2 months) -0.1%
Inception-to-Date Return: 59.8%
Annualized Return: 11.4%
___________________________________________________________________________
__________
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 (2 months)
2.4%
Inception-to-Date Return: 143.7%
Annualized Return 12.5%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 (2 months) 7.8%
Inception-to-Date Return: 24.5%
Annualized Return: 5.2%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 (2 months) -
2.6%
Inception-to-Date Return: 57.0%
Annualized Return: 11.0%
___________________________________________________________________________
__________
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended February 28, 1999
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced Dean Witter Spectrum Select
Percent of
Percent of
February 1, 1999
February 1, 1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 943,272 2.02 5,293,277
2.69
Net change in unrealized (909,016) (1.94) 6,514,860
3.31
Total Trading Results 34,256 0.08 11,808,137
6.00
Interest Income (DWR) 155,239 0.33
541,965 0.28
Total Revenues 189,495 0.41
12,350,102 6.28
EXPENSES
Brokerage fees (DWR) 179,314 0.38 1,188,787
0.61
Management fees 48,727 0.11
491,912 0.25
Incentive fees - - -
- -
Total Expenses 228,041 0.49
1,680,699 0.86
NET INCOME (LOSS) (38,546) (0.08)
10,669,403 5.42
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended February 28, 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,
February 1, 1999 2,925,302.570 46,777,903 15.99 8,513,582.331
196,764.729 23.11
Net Income (Loss) - (38,546) (0.01) -
10,669,403 1.26
Redemptions (30,952.344) (494,618) 15.98 (65,283.432)
(1,590,957) 24.37
Subscriptions 74,150.590 1,184,927 15.98 151,801.689
3,699,408 24.37
Net Asset Value,
February 28, 1999 2,968,500.816 47,429,666 15.98 8,600,100.588
209,542,583 24.37
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 February 28, 1999
(Unaudited)
<CAPTION>
Dean Witter
Spectrum Strategic Dean Witter Spectrum Technical.
Percent of
Percent of
February 1, 1999
February 1, 1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 4,354,660 6.36 4,032,549
1.63
Net change in unrealized 5,127,754 7.49 3,867,747
1.56
Total Trading Results 9,482,414 13.85 7,900,296
3.19
Interest Income (DWR) 190,379 0.28
653,548 0.26
Total Revenues 9,672,793 14.13 8,553,844
3.45
EXPENSES
Brokerage fees (DWR) 413,857 0.61 1,494,436
0.60
Management fees 222,670 0.33 824,517
0.33
Incentive fees 1,012,167 1.48 -
- -
Total Expenses 1,648,694 2.42 2,318,953
0.93
NET INCOME (LOSS) 8,024,099 11.71 6,234,891
2.52
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended February 28, 1999
(Unaudited)
Dean Witter Spectrum Strategic Dean Witter
Spectrum Technical
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
February 1, 1999 6,148,083.802 68,500,533 11.14 16,148,502.050
247,354,967 15.32
Net Income (Loss) - 8,024,099 1.31 -
6,234,891 0.38
Redemptions (62,584.626) (779,179) 12.45 (128,007.749)
(2,009,722) 15.70
Subscriptions 68,705.540 855,384 12.45 312,914.075
4,912,751 15.70
Net Asset Value,
February 28, 1999 6,154,204.716 76,600,837 12.45 16,333,408.376
256,492,887 15.70
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")
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. ("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 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 - 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
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.
