UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2000 or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from ________________to_____________
Commission File Number 0-19511
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3619290
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check-mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No__________
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MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 2000 (Unaudited) and December 31, 1999..........2
Statements of Operations for the Quarters Ended
June 30, 2000 and 1999 (Unaudited).......................3
Statements of Operations for the Six Months Ended
June 30, 2000 and 1999 (Unaudited)...................... 4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 2000 and 1999
(Unaudited)............................................. 5
Statements of Cash Flows for the Six Months Ended
June 30, 2000 and 1999 (Unaudited).......................6
Notes to Financial Statements (Unaudited).............7-
12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.....13-23
Item 3. Quantitative and Qualitative Disclosures about
Market Risk.......................................23-35
Part II. OTHER INFORMATION
Item 1. Legal Proceedings....................................36
Item 2. Changes in Securities and Use of Proceeds........ 36-38
Item 5. Other Information................................... 39
Item 6. Exhibits and Reports on Form 8-K..................39-40
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
2000 1999
$ $
(Unaudited)
<S> <C> <C>
ASSETS
Equity in futures interests trading accounts:
Cash 196,194,313 207,251,012
Net unrealized gain (loss) on open contracts(505,618) 6,
887,064
Net option premiums _______-___ 776,380
Total Trading Equity 195,688,695 214,914,456
Subscriptions receivable 2,172,972 3,730,051
Interest receivable (DWR) 775,245 722,305
Total Assets 198,636,912 219,366,812
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 3,138,459 3,764,242
Accrued brokerage fees (DWR) 1,230,552 1,270,975
Accrued management fees 509,194 525,921
Total Liabilities 4,878,205 5,561,138
Partners' Capital
Limited Partners (9,458,095.666 and
9,583,810.732 Units, respectively) 191,569,662 210,877,519
General Partner (108,076.600 and
133,076.700 Units, respectively) 2,189,045 2,928,155
Total Partners' Capital 193,758,707 213,805,674
Total Liabilities and Partners' Capital 198,636,912 219,3
66,812
NET ASSET VALUE PER UNIT 20.25 22.00
<FN>
The accompanying notes are an integral part
of these financial statements.
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (8,288,499) (2,404,548)
Net change in unrealized (2,601,727) 4,846,371
Total Trading Results (10,890,226) 2,441,823
Interest Income (DWR) 2,370,198 1,854,465
Total Revenues (8,520,028) 4,296,288
EXPENSES
Brokerage fees (DWR) 3,734,146 3,834,038
Management fees 1,545,164 1,586,497
Total Expenses 5,279,310 5,420,535
NET LOSS (13,799,338) (1,124,247)
NET LOSS ALLOCATION
Limited Partners
(13,609,470) (1,108,526)
General Partner
(189,868) (15,721)
NET LOSS PER UNIT
Limited Partners
(2.07) (.12)
General Partner
(2.07) (.12)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (3,377,514) 3,393,720
Net change in unrealized (7,392,682) 2,189,977
Total Trading Results (10,770,196) 5,583,697
Interest Income (DWR) 4,655,147 3,581,033
Total Revenues (6,115,049) 9,164,730
EXPENSES
Brokerage fees (DWR) 7,654,116 7,497,645
Management fees 3,167,219 3,102,472
Total Expenses 10,821,335 10,600,117
NET LOSS (16,936,384) (1,435,387)
NET LOSS ALLOCATION
Limited Partners (16,703,524) (1,414,495)
General Partner (232,860) (20,892)
NET LOSS PER UNIT
Limited Partners
(1.75) (.16)
General Partner
(1.75)
(.16)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 2000 and 1999
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C>
<C> <C> <C>
Partners' Capital,
December 31, 1998 8,407,766.751 $196,915,644 $3,166,872 $20
0,082,516
Offering of Units 1,055,346.328 25,160,601
- 25,160,601
Net Loss
- (1,414,495) (20,892) (1,435,387)
Redemptions (383,100.270) (9,153,045)
- (9,153,045)
Partners' Capital,
June 30, 1999 9,080,012.809 $211,508,705 $3,14
5,980 $214,654,685
Partners' Capital,
December 31, 19999,716,887.432 $210,877,519 $2,928,155 $213,
805,674
Offering of Units 845,703.722 18,238,832
- 18,238,832
Net Loss
- (16,703,524)
(232,860) (16,936,384)
Redemptions (996,418.888) (20,843,165)
(506,250) (21,349,415)
Partners' Capital,
June 30, 2000 9,566,172.266 $191,569,662 $2,189,045
$193,758,707
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
page>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
2000 1999
$ $
<S>
<C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (16,936,384)
(1,435,387)
Noncash item included in net loss:
Net change in unrealized 7,392,682 (
2,189,977)
(Increase) decrease in operating assets:
Net option premiums 776,380 (
406,376)
Interest receivable (DWR) (52,940) (22,867)
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) (40,423) 109,218
Accrued management fees (16,727)
45,194
Net cash used for operating activities (8,877,412)
(3,900,195)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 18,238,832 2
5,160,601
Decrease in subscriptions receivable 1,557,079
1,849,146
Increase (decrease) in redemptions payable(625,783) 57,576
Redemptions of Units (21,349,415) (
9,153,045)
Net cash provided by (used for) financing activities (2
,179,287) 17,914,278
Net increase (decrease) in cash (11,056,699) 1
4,014,083
Balance at beginning of period 207,251,012
187,619,419
Balance at end of period 196,194,313
201,633,502
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The financial statements include, in the opinion of management,
all adjustments necessary for a fair presentation of the results
of operations and financial condition of Morgan Stanley Dean
Witter Spectrum Select L.P. (the "Partnership"). The financial
statements and condensed notes herein should be read in
conjunction with the Partnership's December 31, 1999 Annual
Report on Form 10-K.
1. Organization
Morgan Stanley Dean Witter Spectrum Select L.P. is a Delaware
limited partnership organized to engage primarily in the
speculative trading of futures and forward contracts, options on
futures contracts, physical commodities and other commodity
interests, including, but not limited to foreign currencies,
financial instruments, metals, energy and agricultural products
(collectively, "futures interests"). The Partnership is one of
the Morgan Stanley Dean Witter Spectrum Series of funds,
comprised of the Partnership, Morgan Stanley Dean Witter Spectrum
Commodity L.P., Morgan Stanley Dean Witter Spectrum Currency
L.P., Morgan Stanley Dean Witter Spectrum Global Balanced L.P.,
Morgan Stanley Dean Witter Spectrum Strategic L.P. and Morgan
Stanley Dean Witter Spectrum Technical L.P.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The general partner 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. The trading
advisors to the Partnership are EMC Capital Management, Inc.,
Rabar Market Research, Inc. and Sunrise Capital Management, Inc.
(collectively, the "Trading Advisors").
2. Related Party Transactions
The 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 based on a prevailing rate on
U.S. Treasury bills. Brokerage expenses incurred by the
Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts, options on
futures contracts, physical commodities and other commodity
interests, including, but not limited to foreign currencies,
financial instruments, metals, energy and agricultural products.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Futures and forwards represent contracts for delayed delivery of
an instrument at a specified date and price. Risk arises from
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts. There are numerous factors which may significantly
influence the market value of these contracts, including interest
rate volatility.
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No.
133, "Accounting for Derivative Instruments and Hedging
Activities" effective for fiscal years beginning after June 15,
1999. In June 1999, the FASB issued SFAS No. 137, "Accounting
for Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of SFAS No. 133," which defers the required
implementation of SFAS No. 133 until fiscal years beginning after
June 15, 2000. However, the Partnership had previously elected
to adopt the provisions of SFAS No. 133 beginning with the fiscal
year ended December 31, 1998. SFAS No. 133 supersedes SFAS No.
119 and No. 105, which required the disclosure of average
aggregate fair values and contract/notional values, respectively,
of derivative financial instruments for an entity which carries
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
its assets at fair value. The application of SFAS No. 133 does
not have a significant effect on the Partnership's financial
statements.
The net unrealized gain (loss) on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $(505,618) and
$6,887,064 at June 30, 2000 and December 31, 1999, respectively.
Of the $505,618 net unrealized loss on open contracts at June 30,
2000, $922,902 related to exchange-traded futures and futures-
styled option contracts and $(1,428,520) related to off-exchange-
traded forward currency contracts.
Of the $6,887,064 net unrealized gain on open contracts at
December 31, 1999, $6,935,040 related to exchange-traded futures
and futures-styled options contracts and $(47,976) related to off-
exchange-traded forward currency contracts.
Exchange-traded futures and futures-styled options contracts held
by the Partnership at June 30, 2000 and December 31, 1999 mature
through June 2001 and December 2000, respectively. Off-exchange-
traded forward currency contracts held by the Partnership at June
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
30, 2000 and December 31, 1999 mature through September 2000 and
March 2000, respectively.
The Partnership has credit risk associated with counterparty non-
performance. The credit risk associated with the instruments in
which the Partnership is involved is limited to the amounts
reflected in the Partnership's statements of financial condition.
The Partnership also has credit risk because DWR and Carr act as
the futures commission merchants or the counterparties, with
respect to most of the Partnership's assets. Exchange-traded
futures and futures-styled options contracts are marked to
market on a daily basis, with variations in value settled on a
daily basis. Each of DWR and Carr, as a futures commission
merchant for the Partnership's exchange-traded futures and
futures-styled options contracts, are required, pursuant to
regulations of the Commodity Futures Trading Commission ("CFTC"),
to segregate from their own assets, and for the sole benefit of
their commodity customers, all funds held by them with respect to
exchange-traded futures and futures-styled options contracts,
including an amount equal to the net unrealized gain (loss) on
all open futures and futures-styled options contracts, which
funds, in the aggregate,
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
totaled $197,117,215 and $214,186,052 at June 30, 2000 and
December 31, 1999, respectively. With respect to the
Partnership's off-exchange-traded forward currency contracts,
there are no daily settlements of variations in value nor is
there any requirement that an amount equal to the net unrealized
gain (loss) on forward contracts be segregated. With respect to
those off-exchange-traded forward currency contracts, the
Partnership is at risk to the ability of Carr, the sole
counterparty on all of such contracts, to perform. The
Partnership has a netting agreement with Carr. This agreement,
which seeks to reduce both the Partnership's and Carr's exposure
on off-exchange-traded forward currency contracts, should
materially decrease the Partnership's credit risk in the event of
Carr's bankruptcy or insolvency. Carr's parent, Credit Agricole
Indosuez, has guaranteed to the Partnership payment of the net
liquidating value of the transactions in the Partnership's
account with Carr (including foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership deposits its assets with DWR as non-
clearing broker and Carr as clearing broker in separate futures
trading accounts established for each Trading Advisor, which
assets are used as margin to engage in trading. The assets are
held in either non-interest-bearing bank accounts or in
securities and instruments permitted by the CFTC for investment
of customer segregated or secured funds. The Partnership's
assets held by the commodity brokers may be used as margin solely
for the Partnership's trading. Since the Partnership's sole
purpose is to trade in futures, forwards and options, it is
expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in futures, forwards and options
may, from time to time, be illiquid. Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as "daily price fluctuations limits" or "daily
limits". Trades may not be executed at prices beyond the daily
limit. If the price for a particular futures or options contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be
taken nor liquidated unless traders are willing to effect trades
at or within the limit. Futures prices have occasionally moved
the daily limit for several consecutive days with little or no
<PAGE>
trading. These market conditions could prevent the Partnership
from promptly liquidating its futures or options contracts and
result in restrictions on redemptions.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.
The Partnership has never had illiquidity affect a material
portion of its assets.
Capital Resources - The Partnership does not have, or expect to
have, any capital assets. Redemptions, exchanges and sales of
additional units of limited partnership interest ("Unit(s)") in
the future will affect the amount of funds available for
investment in futures interests in subsequent periods. It is not
possible to estimate the amount and therefore, the impact of
future redemptions of Units.
<PAGE>
Results of Operations
General. The Partnership's results depend on its Trading
Advisors and the ability of each Trading Advisor's trading
programs to take
advantage of price movements or other profit opportunities in the
futures, forwards and options markets. The following presents a
summary of the Partnership's operations for the quarter and six
months ended June 30, 2000 and 1999, respectively, and a general
discussion of its trading activities during each period. It is
important to note, however, that the Trading Advisors trade in
various markets at different times and that prior activity in a
particular market does not mean that such market will be actively
traded by the Trading Advisors or will be profitable in the
future. Consequently, the results of operations of the
Partnership are difficult to discuss other than in the context of
its Trading Advisors' trading activities on behalf of the
Partnership as a whole and how the Partnership has performed in
the past.
For the Quarter and Six Months Ended June 30, 2000
For the quarter ended June 30, 2000, the Partnership recorded
total trading losses net of interest income of $8,520,028 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 3.1% were recorded in the
global stock index futures markets primarily during April from
long positions in S&P 500 and NASDAQ 100 Index futures as
domestic equity prices declined following the release of an
<PAGE>
unexpected jump in the Consumer Price Index. Fears of inflation
and concerns that the Federal Reserve needed to raise interest
rates more aggressively further panicked an already weary market
and forced equity prices lower. In the global interest rate
futures markets, losses of approximately 2.8% were incurred
primarily during April from long positions in U.S. interest rate
futures as prices declined amid fears of higher interest rates
and a late month bounce in equity prices. In the metals markets,
losses of approximately 2.1% were experienced primarily from long
positions in nickel and copper futures as most base metals prices
moved lower in late May amid technically based selling. In the
agricultural markets, losses of approximately 0.9% were recorded
primarily during April and May from long corn and soybean futures
positions as prices moved lower due to forecasts for heavy rain
in the U.S. corn and soy growing regions. In the currency
markets, losses of approximately 0.4% were recorded primarily
during April from long positions in the Japanese yen as the value
of the yen weakened versus the U.S. dollar amid fears of
additional Bank of Japan intervention. Losses were also recorded
from short positions in the Japanese yen as the value of the U.S.
dollar weakened versus the yen during May and June due primarily
to the perception that interest rates in the U.S. may have topped
out and that economic growth may finally be slowing. These
losses were partially offset by gains of approximately 3.5%
recorded primarily during May in the energy markets from long
positions in natural gas futures as prices continued their upward
<PAGE>
trend, as data released by the American Gas Association further
confirmed fears that inventory levels remain low. Adding to
supply concerns were fears that the U.S. demand will outstrip
production this summer, when inventories are typically refilled
for the winter. In the soft commodities markets, gains of
approximately 0.4% were recorded from long positions in sugar
futures as sugar prices trended higher due to strong demand and
declining production from Brazil. Total expenses for the three
months ended June 30, 2000 were $5,729,310, resulting in a net
loss of $13,799,338. The value of a Unit decreased from $21.68
at March 31, 2000 to $20.25 at June 30, 2000.
For the six months ended June 30, 2000, the Partnership recorded
total trading losses net of interest income of $6,115,049 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 4.6% were recorded in the
global interest rate futures markets during April from long
positions in U.S. interest rate futures as prices declined amid
fears of higher interest rates and a late month bounce in equity
prices. In the global stock index futures markets, losses of
approximately 3.5% were incurred from long positions in Hang Seng
Index futures as most global equity prices reversed lower in
early January amid fears of interest rate hikes. During April,
Japanese equity prices, particularly technology issues, declined
sharply following the downward move of U.S. stock prices thus
resulting in losses for long Nikkei Index futures positions.
<PAGE>
Additional losses were experienced primarily during April from
long positions in U.S. stock indices as domestic equity prices
declined following the release of an unexpected jump in the
Consumer Price Index. In the metals markets, losses of
approximately 3.1% were experienced from long positions in copper
and aluminum futures as prices reversed lower in February.
During May, most base metals prices declined amid technically
based selling, thus resulting in additional losses in these
markets. In the agricultural markets, losses of approximately
1.1% were recorded primarily during April and May from long corn
and soybean futures positions as prices moved lower due to
forecasts for heavy rain in the U.S. corn and soy growing
regions. These losses were partially offset by gains of
approximately 5.2% were recorded primarily during May in the
energy markets from long positions in natural gas futures as
prices continued their upward trend, as data released by the
American Gas Association further confirmed fears that inventory
levels remain low. Adding to supply concerns were fears that the
U.S. demand will outstrip production this summer, when
inventories are typically refilled for the winter. Additional
gains were recorded primarily during January and February from
long futures positions in crude oil and its refined products as
oil prices increased on concerns about future output levels from
the world's leading producer countries amid dwindling stockpiles
and increasing demand. In the currency markets, gains of
approximately 1.2% were recorded primarily during January and
<PAGE>
March from short positions in the euro and the Swiss franc as the
values of these currencies weakened versus the U.S. dollar due to
skepticism about Europe's economic outlook. Additional gains
were recorded during April from short positions in the euro as
its value dropped versus the U.S. dollar due to the European
Central Bank's ("ECB") passive stance towards its currency and
increasing concern that the ECB should be more aggressive in
combating inflation. In the soft commodities markets, gains of
approximately 0.3% were recorded from long positions in sugar
futures as sugar prices trended higher due to strong demand and
declining production from Brazil. Total expenses for the six
months ended June 30, 2000 were $10,821,335, resulting in a net
loss of $16,936,384. The value of a Unit decreased from $22.00
at December 31, 1999 to $20.25 at June 30, 2000.
For the Quarter and Six Months Ended June 30, 1999
For the quarter ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $4,296,288
and, after expenses, posted a decrease in Net Asset Value per
Unit. The most significant net trading losses of approximately
1.7% were recorded in the metals markets primarily from long
silver futures positions during May as prices moved lower on the
Silver Institute's report which indicated a drop in fabrication
demand last year and a jump in government sales. Losses were
also experienced from long positions in copper futures during May
as the prices of most base metals fell significantly amid large
<PAGE>
supply, low demand and the unlikely possibility of a production
cut. In the currency markets, losses of approximately 0.5% were
experienced primarily from trading the British pound as its value
moved in a choppy pattern versus the U.S. dollar as positive
economic data that supported recovery hopes in the U.K. drove the
pound higher, only for it to retreat when the Bank of England
stated that it might cut interest rates to stem any undesirable
appreciation of the pound. Smaller losses of approximately 0.4%
were recorded in the agricultural markets primarily from trading
corn and soybean meal futures as prices in these markets moved in
a trendless manner throughout the quarter on inconsistencies in
reports of supply levels, global demand and weather conditions in
key growing regions. A majority of the Partnership's overall
losses for the quarter was offset by gains of approximately 4.5%
in the global interest rate futures markets primarily from short
positions in European interest rate futures during April and June
as prices declined due to dampened sentiment regarding the
European Monetary Union and fears of an interest rate hike in the
U.S. Additional profits were recorded from short positions in
U.S. interest rate futures as domestic bond prices moved lower
during May and June amid fears of a tighter Federal Reserve
monetary policy and a higher-than-expected rise in the Consumer
Price Index. Total expenses for the three months ended June 30,
1999 were $5,420,535, resulting in a net loss of $1,124,247. The
value of a Unit decreased from $23.76 at March 31, 1999 to $23.64
at June 30, 1999.
<PAGE>
For the six months ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $9,164,730
and, after expenses, posted a decrease in Net Asset Value per
Unit. The most significant net trading losses of approximately
2.1% were experienced in the metals markets particularly during
the month of March from long silver futures positions as prices
declined during mid-month after Berkshire Hathaway's annual
report failed to provide any new information on the company's
silver positions. In the global stock index futures market,
losses of approximately 0.4% were recorded primarily from long
positions in European stock index futures as prices moved lower
during January and early February amid skepticism regarding the
stability of emerging market economies. Prices in these markets
continued to decline during May and June amid fears of higher
interest rates in the U.S. A majority of the Partnership's
overall losses for the year was offset by gains of approximately
3.1% recorded in the global interest rate futures markets
primarily from short positions in European bond futures during
April and June as prices declined due to dampened sentiment
regarding the European Monetary Union and fears of an interest
rate hike in the U.S. Additional profits were recorded during
the first half of the year from short positions in U.S. interest
rate futures as domestic bond prices moved lower during February
on strong economic data, as well as during May and June amid
fears of a tighter Federal Reserve monetary policy and a higher-
than-expected rise in the Consumer Price Index. In the energy
<PAGE>
markets, gains of approximately 1.1% were recorded primarily from
long positions in crude oil futures as prices moved considerably
higher during March, April and June. The substantial recovery in
oil prices during the first half of the year was largely
attributed to the news of a decline in inventory levels that
resulted from an agreement reached by both OPEC and non-OPEC
countries to cut total output. Additional profits of
approximately 0.5% were recorded in the currency markets
primarily from short positions in the Swiss franc and the
European common currency as the value of the franc and euro
declined versus the U.S. dollar throughout most of the year. The
weakness in these European currencies relative to the U.S. dollar
was largely attributed to concerns regarding European economic
growth and potentially widening interest rate differentials
between Europe and the U.S. Investors also sold francs and euros
for dollars during the first half of the year in response to the
crisis in Yugoslavia on the rationale that the United States was
the safest place to invest during the crisis in Kosovo. Smaller
gains of approximately 0.4% were recorded in the agricultural
markets primarily during January, February, May and June from
short futures positions in soybean oil and soybeans as prices
trended steadily lower amid a healthy South American crop, fears
that Brazil will flood the market in an effort to aid their
ailing economy and on a bearish USDA supply-demand report. Total
expenses for the six months ended June 30, 1999 were $10,600,117,
resulting
<PAGE>
in a net loss of $1,435,387. The value of a Unit decreased from
$23.80 at December 31, 1998 to $23.64 at June 30, 1999.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool involved in the speculative
trading of futures interests. The market-sensitive instruments
held by the Partnership are acquired for speculative trading
purposes only and, as a result, all or substantially all of the
Partnership's assets are at risk of trading loss. Unlike an
operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.
The futures interests traded by the Partnership involve varying
degrees of market risk. Market risk is often dependent upon
changes in the level or volatility of interest rates, exchange
rates, and prices of financial instruments and commodities.
Fluctuations in market risk based upon these factors result in
frequent changes in the fair value of the Partnership's open
positions, and, consequently, in its earnings and cash flow.
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
<PAGE>
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
exceed the Partnership's experiences to date or any reasonable
expectations based upon historical changes in market value.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the
Partnership's market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All quantitative disclosures in this section are
deemed to be forward-looking statements for purposes of the safe
harbor, except for statements of historical fact.
The Partnership accounts for open positions using mark-to-market
accounting principles. Any loss in the market value of the
Partnership's open positions is directly reflected in the
<PAGE>
Partnership's earnings, whether realized or unrealized, and cash
flow. Profits and losses on open positions of exchange-traded
futures interests are settled daily through variation margin.
The Partnership's risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio. The Partnership estimates VaR using a model
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk. Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the
Partnership's VaR is approximately four years. The one-day 99%
confidence level of the Partnership's VaR corresponds to the
negative change in portfolio value that, based on observed market
risk factors, would have been exceeded once in 100 trading days.
<PAGE>
VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Advisors in their daily risk management
activities.
The Partnership's Value at Risk in Different Market Sectors
The following tables indicate the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by primary market risk category as of June 30, 2000 and 1999. At
June 30, 2000 and 1999, the Partnership's total capitalization
was approximately $194 million and $214 million, respectively.
Primary Market June 30, 2000 June 30, 1999
Risk Category Value at Risk Value at Risk
Currency (0.36)% (1.52)%
Interest Rate (0.87) (1.61)
Equity (0.22) (0.82)
Commodity (1.45) (0.86)
Aggregate Value at Risk (1.68)% (2.83)%
Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual Market Categories listed above. Aggregate VaR will be
lower as it takes into account correlation among different
positions and categories.
<PAGE>
The table above represents the VaR of the Partnership's open
positions at June 30, 2000 and 1999 only and is not necessarily
representative of either the historic or future risk of an
investment in the Partnership. Because the Partnership's only
business is the speculative trading of futures interests, the
composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR, as a percentage of total
Net Assets for the four quarterly reporting periods from July 1,
1999 through June 30, 2000.
Primary Market Risk Category High Low Average
Currency (1.52)% (0.36)% (1.03)%
Interest Rate (1.61) (0.46) (0.88)
Equity (0.82) (0.22) (0.59)
Commodity (1.45) (0.77) (0.96)
Aggregate Value at Risk (2.83)% (1.59)% (2.00)%
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
<PAGE>
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership. The value of the
Partnership's open positions thus creates a "risk of ruin" not
typically found in other investments. The relative size of the
positions held may cause the Partnership to incur losses greatly
in excess of VaR within a short period of time, given the effects
of the leverage employed and market volatility. The VaR tables
above, as well as the past performance of the Partnership, gives
no indication of such "risk of ruin". In addition, VaR risk
measures should be viewed in light of the methodology's
limitations, which include the following:
past changes in market risk factors will not always result
in accurate predictions of the distributions and correlations of
future market movements;
changes in portfolio value in response to market movements
may differ from those of the VaR model;
VaR results reflect past trading positions while future risk
depends on future positions;
VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
<PAGE>
the historical market risk factor data used for VaR
estimation may provide only limited insight into losses that
could be incurred under certain unusual market movements.
The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at June 30, 2000 and for the end of the four
quarterly reporting periods from July 1, 1999 through June 30,
2000. Since VaR is based on historical data, VaR should not be
viewed as predictive of the Partnership's future financial
performance or its ability to manage or monitor risk. There can
be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated above or
that such losses will not occur more than 1 in 100 trading days.
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. These balances and any market
risk they may represent are immaterial. At June 30, 2000 the
Partnership's cash balance at DWR was approximately 91% of its
total Net Asset Value. A decline in short-term interest rates
will result in a decline in the Partnership's cash management
income. This cash flow risk is not considered material.
<PAGE>
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership's primary market risk
exposures as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership's
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expropria-
tions, illiquid markets, the emergence of dominant fundamental
factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased
regulation and many other factors could result in material losses
as well as in material changes to the risk exposures and the risk
<PAGE>
management strategies of the Partnership. Investors must be
prepared to lose all or substantially all of their investment in
the Partnership.
The following were the primary trading risk exposures of the
Partnership as of June 30, 2000, by market sector. It may be
anticipated however, that these market exposures will vary
materially over time.
Interest Rate. The primary market exposure in the Partnership at
June 30, 2000 was in the global interest rate sector. The
Partnership's exposure in the interest rate market complex was
spread primarily across the U.S., Japanese, European and
Australian interest rate sectors. Interest rate movements
directly affect the price of the sovereign bond futures positions
held by the Partnership and indirectly affect the value of its
stock index and currency positions. Interest rate movements in
one country as well as relative interest rate movements between
countries materially impact the Partnership's profitability. The
Partnership's primary interest rate exposure is generally to
interest rate fluctuations in the United States and the other G-7
countries. The G-7 countries consist of France, U.S., Britain,
Germany, Japan, Italy and Canada. However, the Partnership also
takes futures positions in the government debt of smaller nations
- e.g. Australia and Spain. Demeter anticipates that G-7,
Australian and Spanish interest rates will remain the primary
<PAGE>
interest rate exposure of the Partnership for the foreseeable
future. The changes in interest rates which have the most effect
on the Partnership are changes in long-term, as opposed to short-
term, rates. Most of the speculative futures positions held by
the Partnership are in medium- to long- term instruments.
Consequently, even a material change in short-term rates would
have little effect on the Partnership, were the medium- to long-
term rates to remain steady.
Currency. The second largest market exposure at June 30, 2000 was
in the currency complex. The Partnership's currency exposure is
to exchange rate fluctuations, primarily fluctuations which
disrupt the historical pricing relationships between different
currencies and currency pairs. Interest rate changes as well as
political and general economic conditions influence these
fluctuations. The Partnership trades in a large number of
currencies, including cross-rates - i.e., positions between two
currencies other than the U.S. dollar. For the second quarter of
2000, the Partnership's major exposures were in the euro currency
crosses and outright U.S. dollar positions. Outright positions
consist of the U.S. dollar vs. other currencies. These other
currencies include the major and minor currencies. Demeter does
not anticipate that the risk profile of the Partnership's
currency sector will change significantly in the future. The
<PAGE>
currency trading VaR figure includes foreign margin amounts
converted into U.S. dollars with an incremental adjustment to
reflect the exchange rate risk inherent to the dollar-based
Partnership in expressing VaR in a functional currency other than
dollars.
Equity. The primary equity exposure at June 30, 2000 was to
equity price risk in the G-7 countries. The stock index futures
traded by the Partnership are by law limited to futures on
broadly based indices. As of June 30, 2000, the Partnership's
primary exposures were in the FT-SE (Britain), Hang Seng (China)
and the DAX (Germany) stock indices. The Partnership is
primarily exposed to the risk of adverse price trends or static
markets in the U.S., European and Japanese indices. Static
markets would not cause major market changes but would make it
difficult for the Partnership to avoid being "whipsawed" into
numerous small losses.
Commodity.
Metals. The Partnership's primary metals market exposure at
June 30, 2000 was to fluctuations in the price of gold and
silver. Although certain Trading Advisors will, from time to
time, trade base metals such as aluminum, copper, zinc, nickel,
tin and lead, the principal market exposures of the Partnership
have consistently been in precious metals, gold and silver.
<PAGE>
Exposure was evident in the gold market as gold prices were
volatile during the quarter. Silver prices have remained
volatile over this period, and the Trading Advisors have, from
time to time, taken positions as they have perceived market
opportunities to develop. Demeter anticipates that gold and
silver will remain the primary metals market exposure for the
Partnership.
Soft Commodities and Agriculturals. On June 30, 2000, the
Partnership had exposure in the sugar, cotton, coffee and orange
juice markets. Supply and demand inequalities, severe weather
disruption and market expectations affect price movements in
these markets.
Energy. On June 30, 2000, the Partnership's energy exposure was
shared primarily by futures contracts in the crude oil and
natural gas markets. Price movements in these markets result
from political developments in the Middle East, weather patterns,
and other economic fundamentals. It is possible that volatility
will remain high. Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market. Natural gas has exhibited volatility
in prices resulting from weather patterns and supply and demand
factors and may continue in this choppy pattern.
<PAGE>
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of June 30, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances are in euros. The Partnership controls the non-
trading risk of these balances by regularly converting these
balances back into dollars upon liquidation of the respective
position.
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership's assets among different Trading Advisors, each of
whose strategies focus on different market sectors and trading
approaches, and monitoring the performance of the Trading
Advisors daily. In addition, the Trading Advisors establish
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.
Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Please refer to Legal Proceedings previously disclosed in the
Partnership's Form 10-Q for the quarter ended March 31, 2000 and
Form 10-K for the year ended December 31, 1999.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Partnership initially registered 60,000 Units (prior to the
100 for one Unit conversion on April 30, 1998) pursuant to a
Registration Statement on Form S-1, which became effective on May
17, 1991 (SEC File Number 33-39667), and 10,000 (pre-conversion)
Units at a supplemental closing pursuant to a new Registration
Statement on Form S-1, which became effective on August 23, 1991
(SEC File No. 33-42380). The offering commenced on May 17, 1991
and terminated as of August 31, 1991, with 60,853.334 Units sold.
The aggregate price of the offering amount registered was
$69,380,300, based upon the initial offering price of $1,000 per
Unit and $938.03 per Unit at the supplemental closing (the
initial closing and supplemental closing, hereinafter, the
"Initial Offering"). The aggregate offering price of the Units
sold during the Initial Offering was $60,268,482.
The Partnership registered an additional 75,000 Units (pre-
conversion) pursuant to a new Registration Statement of Form S-1,
<PAGE>
which became effective on August 31, 1993 (SEC File Number 33-
65072) (the "Second Offering"). The Second Offering commenced on
August 31, 1993 and terminated as of September 30, 1993, with
74,408.337 Units sold. The aggregate price of the Second
Offering amount registered was $102,744,000, based upon an
initial offering price of $1,369.92. The aggregate price of the
Units sold during the Second Offering was $116,617,866.
The Partnership registered an additional 60,000 Units (pre-con-
version) pursuant to another Registration Statement on Form S-1,
which became effective on October 17, 1996 (SEC File Number 333-
1918), (the "Third Offering"). The Third Offering commenced on
October 17, 1996 and terminated as of March 3, 1997, with
10,878.000 Units sold. The aggregate price of the Third Offering
amount registered was $98,247,000, based upon an initial offering
price of $1,637.45. The aggregate price of the Units sold during
the Third Offering was $22,308,326.
The Partnership registered an additional 1,500,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on May 11, 1998 (SEC File Number 333-47829).
Commencing with the April 30, 1998 monthly closing, each
previously outstanding Unit was converted into 100 Units.
<PAGE>
The Partnership registered an additional 5,000,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on January 21, 1999 (File No. 333-68773).
The Partnership registered an additional 4,500,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on February 28, 2000 (SEC File Number 333-90467).
The managing underwriter for the Partnership is DWR.
Units are being sold at monthly closings as of the last day of
each month at a price equal to 100% of the Net Asset Value of a
Unit as of the date of such monthly closing.
Through June 30, 2000, 19,008,118.295 Units of the Partnership
were sold, leaving 6,605,848.805 Units unsold as of June 30,
2000. The aggregate price of the Units sold through June 30,
2000 is $299,320,463.
Since DWR has paid all offering expenses and no expenses are
chargeable against proceeds, 100% of the proceeds of the offering
have been applied to the working capital of the Partnership for
use in accordance with the "Use of Proceeds" section of the
Prospectus included as part of each Registration Statement.
<PAGE>
Item 5. OTHER INFORMATION
Effective July 1, 2000, Lewis A. Raibley, III resigned as Chief
Financial Officer and a Director of Demeter and Dean Witter
Futures Currency Management Inc. Effective July 10, 2000,
Raymond E. Koch replaced Lewis A. Raibley, III as Chief Financial
Officer of Demeter.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
3.01 Form of Amended and Restated Limited Partnership Agreement
of the Partnership, dated as of May 31, 1998, is
incorporated by reference to Exhibit A of the
Partnership's Prospectus, dated March 6, 2000, filed with
the Securities and Exchange Commission pursuant to Rule
424(b)(3) under the Securities Act of 1933, as amended, on
March 9, 2000.
3.02 Certificate of Limited Partnership, dated March 21, 1991,
is incorporated by reference to Exhibit 3.02 of the
Partnership's Registration Statement on Form S-1 (File No. 333-
39667) filed with the Securities and Exchange
commission on March 27, 1991.
3.03 Amended Certificate of Limited Partnership, dated April
28, 1998, is incorporated by reference to Exhibit 3.03 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.01 Amended and Restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and Rabar Market Research, Inc. is
incorporated by reference to Exhibit 10.01 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
10.02 Amended and Restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and EMC Capital Management, Inc. is
incorporated by reference to exhibit 10.02 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
<PAGE>
10.03 Amended and restated Management Agreement, dated as of
June 1, 1998, among the Partnership, Demeter Management
Corporation, and Sunrise Capital Management, Inc. is
incorporated by reference to Exhibit 10.03 of the
Partnership's Form 10-K (File No. 0-19511) for fiscal year ended
December 31, 1998.
10.04 Amended and Restated Customer Agreement, dated as of
December 1, 1997, between the Partnership and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 10.04 of
the Partnership's form 10-K (File no. 0-19511) for fiscal
year ended December 31, 1998.
10.05 Customer Agreement, dated as of December 1, 1997,
among the Partnership, Carr Futures, Inc., and Dean Witter
Reynolds Inc. is incorporated by reference to exhibit 10.05 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.06 International Foreign Exchange Master Agreement, dated
as of August 1, 1997, between the Partnership and Carr
Futures, Inc. is incorporated by reference to Exhibit 10.06 of
the Partnership's Form 10-K (File No. 0-19511) for fiscal
year ended December 31, 1998.
10.07 Subscription and Exchange Agreement and Power of
Attorney to be executed by each purchase of Units is
incorporated by reference to Exhibit B of the Partnership's
Prospectus, dated January 21, 1999, filed with the Securities
and Exchange Commission pursuant to Rule 424(b)(3) under
the Securities Act of 1933, as amended, on January 26, 1999.
10.08 Escrow Agreement, dated September 30, 1994, among Dean
Witter Spectrum Strategic L.P., Dean Witter Spectrum Global
Balanced L.P., Dean Witter Spectrum technical L.P., Demeter
Management Corporation, dean Witter Reynolds Inc., and
Chemical Bank is incorporated by reference to Exhibit 10.08
of the Partnership's Form 10-K (File No. 0-19511) for
fiscal year ended December 31, 1998.
10.09 Amendment to the Escrow Agreement, dated March 6, 2000,
among the Partnership, Demeter Management Corporation, Dean
Witter Reynolds Inc., and Chemical Bank is incorporated by
reference to exhibit 10.09 of the partnership's Form 10-K
(File No. 0-19511) for fiscal year ended March 9, 2000.
(B) Reports on Form 8-K. - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Dean Witter Spectrum
Select L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
August 14, 2000 By: /s/ Raymond E. Koch
Raymond E. Koch
Chief Financial Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
