Morgan Stanley Dean Witter Spectrum Series
Monthly Report
July 2000
Dear Limited Partner:
The Net Asset Value per Unit for each of the six Morgan Stanley Dean Witter
Spectrum Funds as of July 31, 2000 was as follows:
Funds N.A.V. % change for month
Spectrum Commodity $ 7.39 -3.73%
Spectrum Currency $10.06 0.60%
Spectrum Global Balanced $15.27 -2.16%
Spectrum Select $19.76 -2.42%
Spectrum Strategic $11.74 3.69%
Spectrum Technical $13.10 -3.98%
In general, the performance disparity between the Funds in the Spectrum
Series is due to the portfolio structure and trading approaches unique to
each Fund. Spectrum Strategic, a fund managed by multiple trading advisors
who employ fundamental trading methodologies, recorded gains in the energy
markets from short positions in crude oil futures as oil prices fell.
Spectrum Currency, a fund that participates exclusively in the currency
markets, recorded gains from short positions in the Thai baht and Japanese
yen. Spectrum Technical, a technically-based multi-manager fund,
experienced difficulty across a number of markets, particularly in the
energy markets from long positions in crude oil and natural gas futures and
in the currency markets from long positions in the Swiss franc. Spectrum
Commodity, a fund that participates in the tangible commodity markets from
the long side, recorded losses primarily in the energy markets from long
positions in crude oil and natural gas futures, and in the agricultural
markets from long positions in corn and wheat futures. Spectrum Select,
the other technically-based multi-manager fund, recorded losses primarily
in the energy markets from long positions in crude oil and natural gas
futures. Spectrum Global Balanced, a balanced portfolio of stocks, bonds
and managed futures, experienced losses primarily in the global stock index
futures component from long positions in Nikkei Index futures and in the
energy markets from long positions in crude oil and natural gas futures.
Spectrum Commodity
The Fund decreased in value during July due primarily to losses recorded in
the energy markets from long futures positions in crude oil and its related
products as prices decreased amid growing conviction that Saudi Arabia will
follow through with a pledge to boost production. Additional losses were
experienced from long positions in natural gas futures as prices moved
lower as a result of declining cooling demand in key consumption areas and
an increase in supplies as reported by the American Gas Association. In
the agricultural markets, losses were experienced from long positions in
corn and wheat futures as prices declined on favorable U.S. crop weather
forecasts. A portion of these losses was offset by gains recorded in soft
commodities from long sugar futures positions as prices increased on
forecasts that the world surplus will shrink with smaller crops in 2000-
2001. Additional gains were recorded from long cotton futures positions as
prices moved higher amid fears that the dryness and heat in Texas would
slash the size of the U.S. crop. In the metals markets, gains were
produced from long positions in copper futures as prices increased due to
declines in copper supplies. Offsetting losses were recorded during mid-
month from long gold futures positions as gold prices fell after the Bank
of England announced the results of its latest gold auction, which had
concluded at a lower price than most dealers expected.
Spectrum Currency
Effective July 3, 2000, Morgan Stanley Dean Witter Spectrum Currency L.P.
began trading. The Fund participates exclusively in the global currency
markets and utilizes John W. Henry & Company, Inc. and Sunrise Capital
Partners, LLC. These two trading advisors use technical trend-following
trading programs to participate in world currencies via the futures and
interbank markets.
<PAGE>
The Fund increased in value during July due primarily to gains recorded
later in the month from short positions in the Thai baht as its value
weakened versus the U.S. dollar. Gains were also recorded from short
positions in the Japanese yen as its value weakened relative to the U.S.
dollar due to rising Japanese unemployment data and declining Japanese
stock prices. Additional gains were recorded from short British pound
positions as the value of the pound weakened versus the U.S. dollar as wage
growth, a key factor watched by the Bank of England, slowed significantly
and expectations that UK interest rates will remain on hold for the
foreseeable future. A portion of these gains was offset by losses recorded
during mid-month from long positions in the euro and Swiss franc as their
values weakened versus the U.S. dollar amid speculation that further
European acquisitions of U.S. companies will increase demand for the U.S.
dollar. Additional losses were recorded later in the month from long
positions in the Australian dollar as its value weakened relative to the
U.S. dollar on reports of strong U.S. economic data and a poor Australian
trade balance of goods and services report.
Spectrum Global Balanced
The Fund decreased in value during July due primarily to losses recorded in
the global stock index futures component of the balanced portfolio from
long positions in Nikkei Index futures as Japanese stock prices declined
later in the month as major technology issues were hit hard by losses in
the U.S. NASDAQ Index. In the energy markets, losses were experienced from
long futures positions in crude oil and its related products as prices
decreased amid growing conviction that Saudi Arabia will follow through
with a pledge to boost production. Additional losses were experienced from
long positions in natural gas futures as prices declined as a result of
lower-than-normal cooling demand in key consumption areas and an increase
in supplies as reported by the American Gas Association. In the currency
markets, losses were incurred earlier in the month from short positions in
the Mexican peso as its value strengthened versus the U.S. dollar on
speculation of low U.S. inflation data and Mexican post-election
confidence. A portion of these losses was offset by gains recorded in the
agricultural markets from short positions in corn and soybean oil futures
as prices declined on favorable U.S. crop weather forecasts.
Spectrum Select
The Fund decreased in value during July due primarily to losses recorded in
the energy markets from long futures positions in crude oil and its related
products as prices decreased amid growing conviction that Saudi Arabia will
follow through with a pledge to boost production. Additional losses were
experienced from long positions in natural gas futures as prices declined
as a result of lower-than-normal cooling demand in key consumption areas
and an increase in supplies as reported by the American Gas Association.
In the global stock index futures markets, losses were incurred from long
positions in S&P 500 Index futures as U.S. equity prices declined as
renewed fears that the Federal Reserve will raise interest rates has
exacerbated concerns that corporate earnings may be slowing. In the global
interest rate futures markets, losses were incurred from long positions in
Australian interest rate futures as prices decreased on renewed speculation
of an imminent interest rate hike by Australia's Federal Reserve Bank. A
portion of these losses was offset by gains recorded in the currency
markets from short positions in the Japanese yen as its value weakened
relative to the U.S. dollar due to rising Japanese unemployment data and
declining Japanese stock prices. In the metals markets, gains were
recorded from short gold futures positions as gold prices fell after the
Bank of England announced the results of its latest gold auction, which had
concluded at a lower price than most dealers expected. In the agricultural
markets, gains were recorded from short futures positions in corn, soybeans
and soybean related products as prices declined on favorable U.S. crop
weather forecasts. In soft commodities, gains were recorded from long
sugar futures positions as prices increased on forecasts that the world
surplus will shrink with smaller crops in 2000-2001.
Spectrum Strategic
The Fund increased in value during July due primarily to gains recorded in
the energy markets from short futures positions in crude oil and its
related products as prices decreased amid growing conviction that Saudi
Arabia will follow through with a pledge to boost production. In the soft
commodities markets, gains were recorded from long cotton futures positions
as prices moved higher amid fears that the dryness and heat in Texas would
slash the size of the U.S. crop. In the agricultural markets, gains were
recorded from short futures positions in corn and soybeans as prices
declined on favorable U.S. crop weather forecasts. A portion of these
gains was offset by losses recorded in the currency markets from long
positions in the euro and Swiss franc as the value of these European
currencies weakened during mid-month amid a combination of fresh
inflationary worries in the Eurozone and renewed doubts over the European
Central
Bank's handling of monetary policy. Additional losses were recorded later
in the month from long British pound positions as the value of the U.S.
dollar strengthened versus the pound on stronger-than-expected Gross
Domestic Product economic data. In the global interest rate futures
markets, losses were incurred from long positions in Australian interest
rate futures as prices decreased on renewed speculation of an imminent
interest rate hike by Australia's Federal Reserve Bank.
Spectrum Technical
The Fund decreased in value during July due primarily to losses recorded in
the energy markets from long futures positions in crude oil and its related
products as prices decreased amid growing conviction that Saudi Arabia will
follow through with a pledge to boost production. Additional losses were
experienced from long positions in natural gas futures as prices moved
lower as a result of declining cooling demand in key consumption areas and
an increase in supplies as reported by the American Gas Association. In
the currency markets, losses were experienced from long positions in the
euro and Swiss franc as the value of these European currencies weakened
during mid-month amid a combination of fresh inflationary worries in the
Eurozone and renewed doubts over the European Central Bank's handling of
monetary policy. Offsetting currency gains were recorded from short
positions in the Japanese yen as its value weakened relative to the U.S.
dollar due to rising Japanese unemployment data and declining Japanese
stock prices. In the global stock index futures markets, losses were
recorded from short-term price volatility in European stock index futures.
A portion of these losses was offset by gains recorded in the global
interest rate futures markets from long positions in Japanese interest rate
futures as prices increased aided by a decline in the Nikkei Index after
the Bank of Japan decision to maintain its current zero-interest rate
policy. In soft commodities, gains were recorded from long sugar futures
positions as prices increased on forecasts that the world surplus will
shrink with smaller crops in 2000-2001.
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
Chairman
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 Commodity
1998 -34.3%
1998 15.8%
2000 (7 months) -2.9%
Inception-to-Date Return: -26.1%
Annualized Return: -11.1%
___________________________________________________________________________
__________
Spectrum Currency 2000 (1 month) 0.06%
Inception-to-Date Return: 0.06%
___________________________________________________________________________
___________
Spectrum Global Balanced
1994 (2 months) -1.7%
1995 22.8%
1996 -3.6%
1997 18.2%
1999 16.4%
1999 0.8%
2000 (7 months) -5.3%
Inception-to-Date Return: 52.7%
Annualized Return: 7.6%
___________________________________________________________________________
__________
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
-7.6%
2000 (7 months) -10.2%
Inception-to-Date Return: 97.6%
Annualized Return 7.9%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999
37.2%
2000 (7 months) -25.9%
Inception-to-Date Return: 17.4%
Annualized Return: 2.8%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Spectrum Technical
<S> <C> <C>
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999
-7.5%
2000 (7 months) -12.1%
Inception-to-Date Return: 31.0%
Annualized Return: 4.8%
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended July 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Currency
_ Spectrum Global Balanced
Percent of Percent of
Percent of
July 1, 2000 July 1, 2000
July 1, 2000
Beginning Beginning
Beginning
Amount Net Asset Value Amount Net Asset
Value Amount Net Asset Value
$ % $ %
$ %
REVENUES
<S> <C> <C> <C> <C>
<C> <C>
Trading profit (loss):
Realized (116,445) (0.53) - -
(578,759) (1.05)
Net change in unrealized (652,658) (3.00) 67,591 1.07
(619,467) (1.12)
Total Trading Results (769,103) (3.53) 67,591 1.07
(1,198,226) (2.17)
Interest Income (DWR) 85,973 0.39 18,975 0.30
277,103 0.50
Total Revenues (683,130) (3.14) 86,566 1.37
(921,123) (1.67)
EXPENSES
Brokerage fees (DWR) 83,447 0.38 24,271 0.38
211,604 0.38
Management fees 45,352 0.21 18,467
0.29 57,502 0.11
Incentive fees - - 6,101
0.10 - -.
Total Expenses 128,799 0.59 48,839 0.77
269,106 0.49
NET INCOME (LOSS) (811,929) (3.73) 37,727 0.60
(1,190,229) (2.16)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended July 31, 2000
(Unaudited)
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Currency
Spectrum Global Balanced .
Units Amount Per Unit Units Amount
Per Unit Units Amount Per Unit
$ $ $ $
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Net Asset Value,
July 1, 2000 2,836,716.270 21,768,858 7.67 633,154.332
6,331,543 10.00 3,536,469.231 55,201,385 15.61
Net Income (Loss) - (811,929) (0.28) -
37,727 0.06 - (1,190,229) (0.34)
Redemptions (66,828.460) (493,862) 7.39 - -
- (62,281.683) (951,041) 15.27
Subscriptions 34,843.929 257,497 7.39 263,679.438
2,652,615 10.06 56,086.284 856,438 15.27
Net Asset Value,
July 31, 2000 2,804,731.739 20,720,564 7.39 896,833.770
9,021,885 10.06 3,530,273.832 53,916,553 15.27
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 July 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Select Spectrum Strategic
_ Spectrum Technical
Percent of Percent of
Percent of
July 1, 2000 July 1, 2000
July 1, 2000
Beginning Beginning
Beginning
Amount Net Asset Value Amount Net Asset
Value Amount Net Asset Value
$ % $ %
$ %
REVENUES
<S> <C> <C> <C> <C>
<C> <C>
Trading profit (loss):
Realized (5,206,671) (2.69) 5,050,170 6.20
(9,747,218) (4.05)
Net change in unrealized 1,392,789 0.72 (1,636,243) (2.01)
1,472,021 0.61
Total Trading Results (3,813,882) (1.97) 3,413,927 4.19
(8,275,197) (3.44)
Interest Income (DWR) 774,044 0.40 318,595 0.39
952,545 0.40
Total Revenues (3,039,838) (1.57) 3,732,522 4.58
(7,322,652) (3.04)
EXPENSES
Brokerage fees (DWR) 1,170,626 0.60 491,752 0.60
1,452,376 0.61
Management fees 484,397 0.25 234,965
0.29 801,311 0.33
Total Expenses 1,655,023 0.85 726,717 0.89
2,253,687 0.94
NET INCOME (LOSS) (4,694,861) (2.42) 3,005,805 3.69
(9,576,339) (3.98)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended July 31, 2000
(Unaudited)
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Select Spectrum Strategic
Spectrum Technical .
Units Amount Per Unit Units Amount
Per Unit Units Amount Per Unit
$ $ $ $
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Net Asset Value,
July 1, 2000 9,566,172.266 193,758,707 20.25 7,189,074.920
81,393,435 11.32 17,623,072.520 240,393,273 13.64
Net Income (Loss) - (4,694,861) (0.49) -
3,005,805 0.42 - (9,576,339) (0.54)
Redemptions (122,589.458) (2,422,368) 19.76 (81,756.868)
(959,826) 11.74 (259,643.902) (3,401,335) 13.10
Subscriptions 115,762.919 2,287,476 19.76 122,891.239
1,442,743 11.74 186,377.107 2,441,540 13.10
Net Asset Value,
July 31, 2000 9,559,345.727 188,928,954 19.76 7,230,209.291
84,882,157 11.74 17,549,805.725 229,857,139 13.10
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 Commodity
L.P. ("Spectrum Commodity," formerly Morgan Stanley Tangible
Asset Fund L.P.), Morgan Stanley Dean Witter Spectrum Currency
L.P. ("Spectrum Currency"), 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, forwards, and options contracts on physical
commodities and other commodity interests, including, but not
limited to foreign currencies, financial instruments, metals,
energy and agricultural products (collectively, "futures
interests").
The general partner for each Partnership is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker for
the Partnerships is Dean Witter Reynolds, Inc. ("DWR") and an
unaffiliated clearing commodity broker, Carr Futures Inc.
("Carr"), provides clearing and execution services for Spectrum
Currency, Spectrum Global Balanced, Spectrum Select and
Spectrum Technical. The clearing commodity brokers for Spectrum
Commodity are Morgan Stanley & Co. Incorporated ("MS & Co.")
and Morgan Stanley & Co. International Limited ("MSIL").
Morgan Stanley Dean Witter Commodities Management, Inc.
("MSCM") is the trading advisor to Spectrum Commodity. For
Spectrum Strategic, Carr provides clearing and execution
services for Blenheim Investments Inc. ("Blenheim") and Allied
Irish Capital Management, Ltd. ("AICM"). MS & Co. and MSIL
provide clearing and execution services for Eclipse Capital
Management, Inc. ("Eclipse"). Demeter, DWR, MS& Co., MSCM and
MSIL 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
Demeter and the Limited Partners based upon their proportional
ownership interests.
Use of Estimates - The financial statements are prepared in
accordance with generally accepted accounting principles, which
require management to make estimates and assumptions that
affect the reported amounts in the financial statements and
related disclosures. Management believes that the estimates
utilized in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates.
Revenue Recognition - Futures interests are open commitments
until settlement date. They are valued at market on a daily
basis and the resulting net change in unrealized gains and
losses is reflected in the changes in unrealized profits
(losses) on open contracts from one period to the next in the
statements of operations. Monthly, DWR pays interest income on
80% of the month's average daily "Net Assets" (as defined in
the limited partnership agreements) of
Spectrum Commodity, Spectrum Currency, Spectrum Select,
Spectrum Strategic and Spectrum Technical, and 100% in the case
of Spectrum Global Balanced. The interest rates used are equal
to a prevailing rate on U.S. Treasury bills. For purposes of
such interest payments, Net Assets do not include monies due
the Partnerships on futures interests, but not actually
received.
Net Income (Loss) per Unit - Net income (loss) per unit of
limited partnership interest ("Unit(s)") is computed using the
weighted average number of Units outstanding during the period.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Brokerage and Related Transaction Fees and Costs - The
brokerage fees for Spectrum Commodity, Spectrum Currency, and
Spectrum Global Balanced are accrued at a flat monthly rate of
1/12 of 4.60% (a 4.60% annual rate) of Net Assets as of the
first day of each month.
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 Net Assets as of the first
day of each month.
Such fees currently cover 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 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 of any month that is at least 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.
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.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Dissolution of the Partnership - Spectrum Commodity will
terminate on December 31, 2027, Spectrum Currency, 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
Spectrum Commodity pays brokerage fees to MS & Co. and MSIL.
Spectrum Currency, Spectrum Global Balanced, Spectrum Select,
Spectrum Strategic and Spectrum Technical each pay brokerage
fees to DWR as described in Note 1. Spectrum Commodity's cash
is on deposit with MS & Co. and MSIL and Spectrum Currency's,
Spectrum Global Balanced's, Spectrum Select's, Spectrum
Strategic's and Spectrum Technical's cash is on deposit with
DWR and Carr in futures interests trading accounts to meet
margin requirements as needed. DWR and MS & Co. pay 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 Commodity L.P.
Morgan Stanley Dean Witter Commodities Management Inc.
Morgan Stanley Dean Witter Spectrum Currency L.P.
John W. Henry & Company, Inc. ("JWH")
Sunrise Capital Partners, LLC ("Sunrise")
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")
Eclipse Capital Management, Inc.
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 a management fee and an incentive fee as follows:
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Concluded)
Management Fee - The management fee for Spectrum Commodity is
accrued at a rate of 5/24 of 1% of Net Assets on the first day
of each month (a 2.5% annual rate).
The management fee for Spectrum Global Balanced is accrued at a
rate of 5/48 of 1% of Net Assets on the first day of each month
(a 1.25% annual rate).
The management fees for Spectrum Currency are accrued at a rate
of 1/12 of 4% of Net Assets allocated to JWH on the first day
of each month, and 1/12 of 3% of Net Assets allocated to
Sunrise on the first day of each month (annual rates of 4% and
3%, respectively).
The management fee for Spectrum Select is accrued at a rate of
1/4 of 1% of Net Assets on the first day of each month (a 3%
annual rate).
The management fees for Spectrum Strategic are accrued at a
rate of 1/12 of 4% of Net Assets allocated to Blenheim on the
first day of each month, and 1/12 of 3% of Net Assets allocated
to AICM and Eclipse 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% of Net Assets on the first day of each month (a 4%
annual rate).
Incentive Fee - Spectrum Commodity pays an annual incentive fee
equal to 20% of the trading profits as of the end of each
calendar year.
Spectrum Currency, Spectrum Global Balanced, Spectrum Select
and Spectrum Strategic each pay a monthly incentive fee equal
to 15% of the trading profits 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.
Trading profits for the Partnership's represent the amount by
which profits from futures, forward and options trading exceed
losses after brokerage and management fees are deducted.
For all Partnerships, when trading losses are incurred, no
incentive fees will be paid in subsequent months until all such
losses are received. Cumulative trading losses are adjusted on
a pro-rata basis for the net amount of each months
subscriptions and redemptions.
