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 June 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
June 30, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 1996 (Unaudited) and December 31, 1995............2
Statements of Operations for the Quarters Ended
June 30, 1996 and 1995 (Unaudited)..........................3
Statements of Operations for the Six Months
Ended June 30, 1996 and 1995 (Unaudited)....................4
Statements of Changes in Partners' Capital for
the Six Months Ended June 30, 1996 and 1995 (Unaudited).....5
Statements of Cash Flows for the Six Months Ended
June 30, 1996 and 1995 (Unaudited)..........................6
Notes to Financial Statements (Unaudited).................7-11
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations............................................12-16
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................... 17
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 20,280,901 23,419,888
Net unrealized gain on open contracts 1,084,799 1,234,614
Net option premiums 209,930 68,262
Total Trading Equity 21,575,630 24,722,764
Receivable from DWR 122,977 43,173
Interest receivable (DWR) 73,340 86,133
Total Assets 21,771,947 24,852,070
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 1,135,447 360,179
Accrued brokerage commissions (DWR) 57,211 60,522
Accrued management fees 54,218 61,428
Accrued administrative expenses 19,837 20,150
Accrued transaction fees and costs 7,509 5,275
Total Liabilities 1,274,222 507,554
Partners' Capital
Limited Partners (26,516.629 and
29,854.232 Units, respectively) 19,958,827 23,774,361
General Partner (715.962 Units) 538,898 570,155
Total Partners' Capital 20,497,725 24,344,516
Total Liabilities and Partners' Capital 21,771,947 24,852,070
NET ASSET VALUE PER UNIT 752.69 796.35
<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 June 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 140,914 5,079,920
Net change in unrealized 652,237 (2,489,641)
Total Trading Results 793,151 2,590,279
Interest Income (DWR) 224,138 349,438
Total Revenues 1,017,289 2,939,717
EXPENSES
Brokerage commissions (DWR) 452,880 542,423
Management fees 167,708 245,690
Transaction fees and costs 41,219 91,527
Administrative expenses 13,941 17,023
Total Expenses 675,748 896,663
NET INCOME 341,541 2,043,054
NET INCOME ALLOCATION
Limited Partners 333,597 2,005,545
General Partner 7,944 37,509
NET INCOME PER UNIT
Limited Partners 11.10 52.39
General Partner 11.10 52.39
<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 Six Months Ended June 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (262,311) 7,746,942
Net change in unrealized (149,815) (202,311)
Total Trading Results (412,126) 7,544,631
Interest Income (DWR) 454,670 667,337
Total Revenues 42,544 8,211,968
EXPENSES
Brokerage commissions (DWR) 884,280 1,075,880
Management fees 345,756 463,168
Transaction fees and costs 83,355 145,243
Administrative expenses 28,701 30,622
Total Expenses 1,342,092 1,714,913
NET INCOME (LOSS) (1,299,548) 6,497,055
NET INCOME (LOSS) ALLOCATION
Limited Partners (1,268,291) 6,378,781
General Partner (31,257) 118,274
NET INCOME (LOSS) PER UNIT
Limited Partners (43.66) 165.20
General Partner (43.66) 165.20
<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 Six Months Ended June 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 - 6,378,781 118,274 6,497,055
Redemptions (4,399.534) (3,288,657) - (3,288,657)
Partners' Capital
June 30, 1995 37,586.257 $31,238,310 $606,598 $31,844,908
Partners' Capital
December 31, 1995 30,570.194 $23,774,361 $570,155 $24,344,516
Net Loss - (1,268,291) (31,257) (1,299,548)
Redemptions (3,337.603) (2,547,243) - (2,547,243)
Partners' Capital
June 30, 1996 27,232.591 $19,958,827 $538,898 $20,497,725
<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 Six Months Ended June 30,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (1,299,548) 6,497,055
Noncash item included in net income (loss):
Net change in unrealized 149,815 202,311
(Increase) decrease in operating assets:
Net option premiums paid (141,668) 145,372
Receivable from DWR (79,804) (11,752)
Interest receivable (DWR) 12,793 631
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) (3,311) 13,244
Accrued management fees (7,210) 6,552
Accrued administrative expenses (313) (2,658)
Accrued transaction fees and costs 2,234 5,336
Net cash provided by (used for) operating activities (1,367,012) 6,856,091
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable 775,268 (594,191)
Redemptions of units (2,547,243) (3,288,657)
Net cash used for financing activities (1,771,975) (3,882,848)
Net increase (decrease) in cash (3,138,987) 2,973,243
Balance at beginning of period 23,419,888 27,713,770
Balance at end of period 20,280,901 30,687,013
<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. 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.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
3. 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 June 30, 1996, open contracts were:
Contract or
Notional Amount
$
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 33,921,000
Commitments to Sell 30,284,000
Commodity Futures:
Commitments to Purchase 8,037,000
Commitments to Sell 9,314,000
Foreign Futures:
Commitments to Purchase 182,000
Commitments to Sell 182,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 41,678,000
Commitments to Sell 37,805,000
<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 unrealized gains on open contracts is reported as a component
of "Equity in Commodity futures trading accounts" on the Statement
of Financial Condition and totaled $1,084,799 at June 30, 1996. Of
this amount, $1,090,967 related to exchange-traded futures
contracts and ($6,168) related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1996 mature through March 1997. Off-exchange-traded-forward
currency contracts held by the Partnership at June 30, 1996 mature
through July 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 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 including an amount equal to the net unrealized gain on all
open futures contracts, which funds totaled $21,371,868 at June 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 -(CONCLUDED)
For the quarter ended June 30, 1996, the average fair value of
financial instruments held for trading purposes was as follows:
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 44,770,000 74,484,000
Commodity Futures 8,361,000 3,036,000
Foreign Futures 38,522,000 14,326,000
Off-Exchange-Traded Forward
Currency Contracts 36,174,000 44,981,000
4. Subsequent Event
Effective September 1, 1996, maximum total brokerage commissions
and transaction fees chargeable to the Partnership will be capped
at .65% per month of adjusted Net Assets as defined in the Limited
Partnership Agreement.
<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 contracts,
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 contracts, 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, 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 and 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 contracts and other commodity
interests. As redemptions are at the discretion of the Limited
Partners, it is not possible to estimate the amount and therefore,
the impact of future redemptions.
Results of Operations
For the Quarter and Six Months Ended June 30, 1996
For the quarter ended June 30, 1996, the Partnership's total
trading revenues including interest income were $1,017,289. During
the second quarter, the Partnership posted an increase in Net Asset
Value per Unit. The most significant trading gains were recorded
in the currency markets as a decline in the value of the German
mark and Swiss franc relative to the U.S. dollar resulted in
profits for short German mark and Swiss franc positions. In the
energy markets, gains were recorded from long natural gas futures
positions as prices moved higher during June. Additional trading
<PAGE>
gains were experienced in the metals markets during June from short
copper futures positions as prices moved sharply lower on news of
significant losses by Sumitomo Corporation. In the agricultural
markets, trading gains were recorded from long wheat and corn
futures positions, as prices in these markets moved higher. Gains
in soft commodities from short cotton futures positions during May
and June more than offset losses experienced in coffee, orange
juice and cocoa during April. A portion of overall gains for the
quarter was offset by losses in the financial futures markets from
global interest rate and stock index futures trading as prices in
these markets were trendless throughout the quarter. Total
expenses for the quarter were $675,748, resulting in net income of
$341,541. The value of an individual Unit in the Partnership
increased from $741.59 at March 31, 1996 to $752.69 at June 30,
1996.
For the six months ended June 30, 1996, the Partnership's total
trading revenues including interest income were $42,544. During
the first half of the year, the Partnership posted a decrease in
Net Asset Value per Unit. The most significant losses were
recorded in the financial futures markets during February as a
sharp reversal downward was experienced in global bond futures
prices. Additional losses were recorded in non-U.S. interest rate
and global stock index futures between March and June as trendless
price movement followed. Losses were also recorded in soft
commodities as prices moved in a choppy pattern during the first
quarter. However, gains from short cotton futures positions during
May and June helped to mitigate these losses. Gains were recorded
<PAGE>
in the currency markets during April from short German mark and
Swiss franc positions, as well as from trading other European
currencies. Smaller gains experienced from transactions involving
the Japanese yen offset a portion of overall losses. Smaller gains
were also recorded in the agricultural markets from trading wheat
and corn futures during April and May, as rising prices resulted in
profits for the Fund's long positions. In the energy markets,
gains from trading natural gas futures during June more than offset
losses incurred during May from trading unleaded gas and crude oil
futures. In metals, gains from short copper futures positions
during June more than offset losses from trendless price movement
in other base metals during the first quarter. Total expenses for
the period were $1,342,092, resulting in a net loss of $1,299,548.
The value of an individual Unit in the Partnership decreased from
$796.35 at December 31, 1995 to $752.69 at June 30, 1996.
For the Quarter and Six Months Ended June 30, 1995
For the Quarter ended June 30, 1995, the Partnership's total
revenues including interest income were $2,939,717. During the
second quarter, the Partnership posted an increase in Net Asset
Value per Unit. The most significant trading gains were recorded
in global financial futures. As bond prices continued their upward
trend, the Partnership was able to post gains in April and May from
trading in interest rate futures. Gains were recorded in U.S.
Treasury bond and Treasury note futures, as well as in Japanese
government bond, European bond and Australian bond futures. Gains
were also recorded in U.S. and British stock index futures, as
stock prices also continued their upward trend. Smaller gains in
<PAGE>
coffee futures were recorded in the latter half of June as coffee
prices moved lower. Losses in agricultural, metals, currency and
energy futures offset a portion of the Partnership's gains for the
quarter. Total expenses for the quarter were $896,663 resulting in
net income of $2,043,054. The value of an individual Unit in the
Partnership increased from $794.86 at March 31, 1995 to $847.25 at
June 30, 1995.
For the six months ended June 30, 1995, the Partnership's total
revenues including interest income were $8,211,968. During the
first six months, the Partnership posted an increase in Net Asset
Value per Unit. The most significant trading gains were recorded
in global financial futures. Global interest rate futures prices
trended higher between February and May, allowing the Partnership
to record gains in U.S. Treasury bond and Treasury note, Japanese
government bond and Australian bond futures. Gains were also
recorded in U.S., Japanese and British stock index futures during
the quarter. Gains from currency trading were recorded in
February, March and April as the Japanese yen and the major
European currencies trended higher versus the U.S. dollar. Smaller
gains recorded in coffee and crude oil futures contributed to the
Partnership's overall gains. Losses experienced in the soybean
products, heating oil, precious metals, sugar and corn offset a
portion of the Partnership's gains for the first half of the year.
Total expenses for the period were $1,714,913, resulting in
net income of $6,497,055. The value of an individual Unit in the
Partnership increased from $682.05 at December 31, 1994 to $847.25
at June 30, 1995.
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)
August 12, 1996 By:
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.
<PAGE>
<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> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 20,280,901
<SECURITIES> 0
<RECEIVABLES> 196,317<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 21,771,947<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 21,771,947<F3>
<SALES> 0
<TOTAL-REVENUES> 42,544<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,342,092
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,299,548)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,299,548)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,299,548)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include receivable from DWR of $122,977 and interest
receivable of $73,340.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,084,799 and net option premiums of $209,930.
<F3>Liabilities include redemptions payable of $1,135,447, accrued brokerage
commissions of $57,211, accrued management fees of $54,218, accrued
administrative expenses of $19,837 and accrued transaction fees and
costs of $7,509.
<F4>Total revenues includes realized trading revenue of $(262,311), net
change in unrealized of $(149,815) and interest income of $454,670.
</FN>
</TABLE>
