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 period ended September 30, 1996 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 33-42360
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
(Exact name of registrant as specified in its charter)
Delaware 13-3642323
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 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
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
September 30, 1996 (Unaudited) and December 31, 1995.........2
Statements of Operations for the Quarters Ended
September 30, 1996 and 1995 (Unaudited)......................3
Statements of Operations for the Nine Months
Ended September 30, 1996 and 1995 (Unaudited)................4
Statements of Changes in Partners' Capital for
the Nine Months Ended September 30, 1996 and 1995
(Unaudited)..................................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1996 and 1995 (Unaudited)......................6
Notes to Financial Statements (Unaudited).................7-12
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations............................................13-17
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................... 18
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 17,716,992 23,419,888
Net unrealized gain on open contracts 2,269,755 1,234,614
Net option premiums 220,935 68,262
Total Trading Equity 20,207,682 24,722,764
Receivable from DWR 195,243 43,173
Interest receivable (DWR) 63,793 86,133
Total Assets 20,466,718 24,852,070
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 312,321 360,179
Accrued brokerage commissions (DWR) 99,118 60,522
Accrued management fees 50,813 61,428
Accrued administrative expenses 32,467 20,150
Accrued transaction fees and costs 9,718 5,275
Total Liabilities 504,437 507,554
Partners' Capital
Limited Partners (25,314.043 and
29,854.232 Units, respectively) 19,413,214 23,774,361
General Partner (715.962 Units) 549,067 570,155
Total Partners' Capital 19,962,281 24,344,516
Total Liabilities and Partners' Capital 20,466,718 24,852,070
NET ASSET VALUE PER UNIT 766.90 796.35
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (379,310) (713,439)
Net change in unrealized 1,184,955 (973,254)
Total Trading Results 805,645 (1,686,693)
Interest Income (DWR) 200,663 323,332
Total Revenues 1,006,308 (1,363,361)
EXPENSES
Brokerage commissions (DWR) 414,301 477,013
Management fees 151,935 212,187
Transaction fees and costs 59,535 73,176
Administrative expenses 12,630 12,490
Total Expenses 638,401 774,866
NET INCOME (LOSS) 367,907 (2,138,227)
NET INCOME (LOSS) ALLOCATION
Limited Partners 357,738 (2,096,324)
General Partner 10,169 (41,903)
NET INCOME (LOSS) PER UNIT
Limited Partners 14.21 (58.53)
General Partner 14.21 (58.53)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (641,621) 7,033,503
Net change in unrealized 1,035,141 (1,175,565)
Total Trading Results 393,520 5,857,938
Interest Income (DWR) 655,332 990,669
Total Revenues 1,048,852 6,848,607
EXPENSES
Brokerage commissions (DWR) 1,298,579 1,552,893
Management fees 497,693 675,355
Transaction fees and costs 142,891 218,419
Administrative expenses 41,330 43,112
Total Expenses 1,980,493 2,489,779
NET INCOME (LOSS) (931,641) 4,358,828
NET INCOME (LOSS) ALLOCATION
Limited Partners (910,553) 4,282,457
General Partner (21,088) 76,371
NET INCOME (LOSS) PER UNIT
Limited Partners (29.45) 106.67
General Partner (29.45) 106.67
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1994 41,985.791 $28,148,186 $488,324 $28,636,510
Net Income - 4,282,457 76,371 4,358,828
Redemptions (10,006.038) (7,772,228) - (7,772,228)
Partners' Capital
September 30, 1995 31,979.753 $24,658,415 $564,695 $25,223,110
Partners' Capital
December 31, 1995 30,570.194 $23,774,361 $570,155 $24,344,516
Net Loss - (910,553) (21,088) (931,641)
Redemptions (4,540.189) (3,450,594) - (3,450,594)
Partners' Capital
September 30, 1996 26,030.005 $19,413,214 $549,067 $19,962,281
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (931,641) 4,358,828
Noncash item included in net income (loss):
Net change in unrealized (1,035,141) 1,175,565
(Increase) decrease in operating assets:
Receivable from DWR (152,070) (3,892)
Interest receivable (DWR) 22,340 15,839
Net option premiums (152,673) 241,187
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) 38,596 (19,179)
Accrued management fees (10,615) (10,247)
Accrued administrative expenses 12,317 9,832
Accrued transaction fees and costs 4,443 4,160
Net cash provided by (used for) operating activities (2,204,444) 5,772,093
CASH FLOWS FROM FINANCIAL ACTIVITIES
Decrease in redemptions payable (47,858) (675,350)
Redemptions of units (3,450,594) (7,772,228)
Net cash used for financial activities (3,498,452) (8,447,578)
Net decrease in cash (5,702,896) (2,675,485)
Balance at beginning of period 23,419,888 27,713,770)
Balance at end of period 17,716,992 25,038,285
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
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. The financial statements and
condensed notes herein should be read in conjunction with the
Partnership's December 31, 1995 Annual Report on Form 10-K.
1. Organization
Dean Witter Global Perspective Portfolio Fund (the "Partnership")
is a limited partnership organized to engage in the speculative
trading of commodity futures contracts, commodity options contracts
and forward contracts on foreign currencies. The general partner
for the Partnership is Demeter Management Corporation (the "General
Partner"). The commodity broker is Dean Witter Reynolds Inc.
("DWR"). Both the General Partner and DWR are wholly-owned
subsidiaries of Dean Witter, Discover & Co. The General Partner
has retained Abacus Asset Management Inc., ELM Financial, Inc., EMC
Capital Management, Inc., and Millburn Ridgefield Corporation as
the trading advisors of the Partnership.
2. Summary of Significant Accounting Policies
Effective September 1, 1996, maximum total brokerage commissions
and transaction fees chargeable to the Partnership are capped at
.65% per month of adjusted Net Assets as defined in the Limited
Partnership Agreement.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity trading
accounts to meet margin requirements as needed. DWR pays interest
on these funds based on current 13-week U.S. Treasury Bill rates.
Brokerage expenses incurred by the Partnership are paid to DWR.
4. Financial Instruments
The Partnership trades futures, options and forward contracts in
interest rates, stock indices, commodities, currencies, petroleum
and precious metals. 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. At September 30, 1996, open contracts were:
Contract or
Notional Amount
$
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 48,208,000
Commitments to Sell 20,203,000
Commodity Futures:
Commitments to Purchase 11,964,000
Commitments to Sell 12,774,000
Foreign Futures:
Commitments to Purchase 101,517,000
Commitments to Sell 8,474,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 20,366,000
Commitments to Sell 30,911,000
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward commitments
to purchase and to sell the same currency on the same date in the
future. These commitments are economically offsetting, but are not
offset in the forward market until the settlement date.
The net unrealized gain on open contracts is reported as a
component of "Equity in Commodity futures trading accounts" on the
Statement of Financial Condition and totaled $2,269,755 at
September 30, 1996. Of this amount, $2,187,370 related to
exchange-traded futures contracts and $82,385 related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1996 mature through June 1997. Off-exchange-traded
forward currency contracts held by the Partnership at September 30,
1996 mature through October 1996. The contract amounts in the
above table represent the Partnership's extent of involvement in
the particular class of financial instrument, but not the credit
risk associated with counterparty nonperformance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial Condition.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Partnership also has credit risk because DWR acts as the
futures commission merchant or the sole counterparty, with respect
to most of the Partnership's assets. Exchange-traded futures and
options contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. DWR, as the futures
commission merchant for all of the Partnership's exchange-traded
futures and options contracts, is required pursuant to regulations
of the Commodity Futures Trading Commission to segregate from its
own assets and for the sole benefit of its commodity customers all
funds held by DWR with respect to exchange-traded futures and
options contracts including an amount equal to the net unrealized
gain on all open futures contracts, which funds totaled $19,904,362
at September 30, 1996. 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 on open forward
contracts be segregated. With respect to those off-exchange-traded
forward currency contracts, the Partnership is at risk to the
ability of DWR, the counterparty on all such contracts, to perform.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the nine months ended September 30, 1996, the average fair
value of financial instruments held for trading purposes was as
follows:
Assets Liabilities
$ $
Exchange-Traded Contracts
Financial Futures 43,817,000 57,446,000
Options on Financial Futures 3,018,000 -
Commodity Futures 8,226,000 4,922,000
Foreign Futures 55,018,000 13,608,000
Options on Foreign Futures 321,000 -
Off-Exchange-Traded Forward
Currency Contracts 35,668,000 40,618,000
5. Legal Matters
On September 6, 10, and 20, 1996, similar purported class actions
were filed in the Superior Court of the State of California, County
of Los Angeles, on behalf of all purchasers of interests in limited
partnership commodity pools sold by DWR. Named defendants include
DWR, the General Partner, Dean Witter Futures and Currency
Management Inc., Dean Witter, Discover & Co. (all such parties
referred to hereafter as the "Dean Witter Parties"), certain
limited partnership commodity pools of which Demeter is the general
partner, and certain trading advisors to those pools. Also, on
September 18 and 20, 1996 similar purported class actions were
filed in the Supreme Court of the State of New York, New York
County, against the Dean Witter Parties and certain trading
advisors on behalf of all purchasers of interests in various
limited partnership commodity pools sold by DWR.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Generally, these complaints allege, among other things, that the
defendants committed fraud, deceit, misrepresentation, breach of
fiduciary duty, fraudulent and unfair business practices, unjust
enrichment, and conversion in connection with the sale and
operation of the various limited partnership commodity pools. The
complaints seek unspecified amounts of compensatory and punitive
damages and other relief. It is possible that additional similar
actions may be filed and that, in the course of these actions,
other parties could be added as defendants. The Dean Witter
Parties believe that they have strong defenses to, and they will
vigorously contest the actions. Although the ultimate outcome of
legal proceedings cannot be predicted with certainty, it is the
opinion of management of the Dean Witter Parties that the
resolution of the actions will not have a material adverse effect
on the financial condition or the results of operations of any of
the Dean Witter Parties.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in separate
commodity interest trading accounts with DWR, and are used by the
Partnership as margin to engage in commodity futures and forward
contracts on foreign currencies and other commodity interest
trading. DWR holds such assets in either designated depositories
or in securities approved by the Commodity Futures Trading
Commission for investment of customer funds. The Partnership's
assets held by DWR may be used as margin solely for the
Partnership's trading. Since the Partnership's sole purpose is to
trade in commodity futures and options contracts and forward contracts
on foreign currencies and other commodity interests, it is expected
that the Partnership will continue to own such liquid assets for
margin purposes.
The Partnership's investment in commodity futures and forward
contracts and other commodity interests may be illiquid. If the
price of the futures contract for a particular commodity has
increased or decreased by an amount equal to the "daily limit",
positions in the commodity can neither be taken nor liquidated
unless traders are willing to effect trades at or within the limit.
Commodity futures prices have occasionally moved the daily limit
for several consecutive days with little or no trading. Such
market conditions could prevent the Partnership from promptly
liquidating its commodity futures positions.
<PAGE>
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 subjecting it to substantial
losses. Either of these market conditions could result in
restrictions on redemptions.
Capital Resources. The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions of additional
Units in the future will impact the amount of funds available for
investments in commodity futures and forward contracts and other
commodity interests. As redemptions are at the discretion of
Limited Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions.
Results of Operations
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading revenues including interest income were $1,006,308. During
the third quarter, the Partnership posted an increase in Net Asset
Value per Unit. The most significant trading gains were recorded
in the financial futures markets from long European, Australian and
Japanese bond futures positions as international interest rate
futures prices moved higher between July and September. Additional
gains were recorded in the energy markets from long positions in
crude and heating oil futures as oil prices trended higher
<PAGE>
throughout the quarter. A portion of the overall gains for the
quarter was offset by losses in the currency markets from short
Swiss franc positions as its value increased relative to the U.S.
dollar and other world currencies during July. Additional losses
were experienced in soft commodities as a result of trendless
movement in coffee and cotton prices throughout a majority of the
quarter. In the agricultural markets, losses were experienced as
soybean and corn futures prices moved in an inconsistent pattern
during the quarter. Total expenses for the quarter were $638,401,
resulting in net income of $367,907. The value of an individual
Unit in the Partnership increased from $752.69 at June 30, 1996 to
$766.90 at September 30, 1996.
For the nine months ended September 30, 1996, the Partnership's
total trading revenues including interest income were $1,048,852.
During the first nine months of the year, the Partnership posted a
decrease in Net Asset Value per Unit. Trading gains during the
first nine months of the year were offset by brokerage commissions
resulting in a net loss. The most significant losses were recorded
in the financial futures markets. These losses recorded during the
first six months of the year in global interest rate and stock
index futures more than offset gains recorded during the third
quarter from long positions in international bond futures.
Additional losses were recorded in the soft commodities markets as
a result of choppy price movement in coffee and sugar futures
during a majority of the first nine months of the year. A majority
of overall losses for the year was offset by gains from long
heating, crude and gas oil futures positions as oil prices moved
<PAGE>
significantly higher during the third quarter. Gains were also
recorded in the currency markets from transactions involving the
Japanese yen throughout a majority of the first nine months of the
year. Additionally, profits recorded from long wheat and corn
futures positions during the second quarter more than offset losses
in these same markets recorded during the third quarter. Total
expenses for the period were $1,980,493, resulting in a net loss of
$931,641. The value of an individual Unit in the Partnership
decreased from $796.35 at December 31, 1995 to $766.90 at September
30, 1996.
For the Quarter and Nine Months Ended September 30, 1995
For the quarter ended September 30, 1995, the Partnership's total
trading losses net of interest income were $1,363,361. During the
third quarter, the Partnership posted a decrease in Net Asset Value
per Unit. The most significant trading losses resulted from
trading in global interest rate futures, metals and energies, as
trendless price movement prevailed across a majority of the markets
in each of these sectors for much of the third quarter. Smaller
losses were recorded in soft commodities and agricultural futures
trading as a result of price break-outs followed by choppy and
short-term volatile movement. Trading profits in the currencies
sector, primarily as a result of a declining trend in the value
of the Japanese yen relative to the U.S. dollar, helped to offset
a portion of losses in other sectors. Total expenses for the
quarter were $774,866 resulting in net a loss of $2,138,227. The
value of an individual Unit in the Partnership decreased from
$847.25 at June 30, 1995 to $788.72 at September 30, 1995.
<PAGE>
For the nine months ended September 30, 1995, the Partnership's
total trading revenues including interest income were $6,848,607.
During the first nine months of the year, the Partnership posted an
increase in Net Asset Value per Unit. The most significant profits
for this period resulted from trading in global interest rate
futures, as prices in U.S. and Japanese bond futures contracts
trended higher in the first half of 1995, and in currencies,
primarily as a result of trending movement in the value of the
Japanese yen throughout the first nine months of the year and in
major European currencies in the year's first quarter. Additional
profits were recorded from trading in stock index futures as U.S.
stock prices trended higher. Losses across a majority of domestic
commodities, including agriculturals, metals and soft commodities,
resulting from trendless price movement for much of 1995, offset a
portion of the profits in other sectors. Total expenses for the
period were $2,489,779, resulting in net income of $4,358,828.
The value of an individual Unit in the Partnership increased from
$682.05 at December 31, 1994 to $788.72 at September 30, 1995.
<PAGE>
PART II. OTHER INFORMATION
Item 6.Exhibits and Reports on Form 8-K
A) Exhibits - None.
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.
Dean Witter Global Perspective
Portfolio Fund
(Registrant)
By: Demeter Management Corporation
(General Partner)
November 12, 1996 By:/s/ Patti L. Behnke
Patti L. Behnke
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.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Global Perspective Portfolio L.P. and is qualified in its entirety
by references to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 17,716,992
<SECURITIES> 0
<RECEIVABLES> 259,036<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 20,466,718<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,466,718<F3>
<SALES> 0
<TOTAL-REVENUES> 1,048,852<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,980,493
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (931,641)
<INCOME-TAX> 0
<INCOME-CONTINUING> (931,641)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (931,641)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include receivable from DWR of $195,243 and interest
receivable of $63,793.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $2,269,755 and net option premiums of $220,935.
<F3>Liabilities include redemptions payable of $312,321, accrued brokerage
commissions of $99,118, accrued management fees of $50,813, accrued
administrative expenses of $32,467 and accrued transaction fees and
costs of $9,718.
<F4>Total revenues include realized trading re enue of $(641,621), net
change in unrealized of $1,035,141 and interest income of $655,332.
</FN>
</TABLE>
