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 March 31, 1997 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 No. 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
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
March 31, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 1997
(Unaudited) and December 31, 1996.....................2
Statements of Operations for the Quarters Ended
March 31, 1997 and 1996 (Unaudited)...................3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 1997 and 1996
(Unaudited)...........................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1997 and 1996 (Unaudited)...................5
Notes to Financial Statements (Unaudited)..........6-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.......... ..12-16
Part II. OTHER INFORMATION
Item 1 Legal Proceedings.................................17-18
Item 6. Exhibits and Reports on Form 8-K.....................19
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 22,125,404 20,791,474
Net unrealized gain on open contracts 1,490,737 1,076,373
Net option premiums 68,146 109,179
Total Trading Equity 23,684,287 21,977,026
Receivable from DWR 135,454 218,310
Interest receivable (DWR) 82,269 72,072
Total Assets 23,902,010 22,267,408
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 371,216 448,724
Accrued brokerage commissions (DWR) 99,380 91,914
Accrued management fees 59,414 55,367
Administrative expenses payable 28,168 19,045
Accrued transaction fees and costs 8,588 9,353
Total Liabilities 566,766 624,403
Partners' Capital
Limited Partners (23,088.612 and
24,157.801 Units, respectively) 22,633,398 21,020,037
General Partner (715.962 Units) 701,846 622,968
Total Partners' Capital 23,335,244 21,643,005
Total Liabilities and Partners' Capital 23,902,010 22,267,408
NET ASSET VALUE PER UNIT 980.28 870.11
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 March 31,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 2,699,303 (403,225)
Net change in unrealized 414,364 (802,051)
Total Trading Results 3,113,667 (1,205,276)
Interest Income (DWR) 229,300 230,531
Total Revenues 3,342,967 (974,745)
EXPENSES
Brokerage commissions (DWR) 375,610 431,400
Management fees 177,817 178,048
Transaction fees and costs 54,186 42,136
Administrative expenses 14,781 14,760
Total Expenses 622,394 666,344
NET INCOME (LOSS) 2,720,573 (1,641,089)
NET INCOME (LOSS) ALLOCATION
Limited Partners 2,641,695 (1,601,888)
General Partner 78,878 (39,201)
NET INCOME (LOSS) PER UNIT
Limited Partners 110.17 (54.76)
General Partner 110.17 (54.76)
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Quarters Ended March 31, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1995 30,570.194 $23,774,361 $570,155 $24,344,516
Net Loss - (1,601,888) (39,201) (1,641,089)
Redemptions (818.433) (639,679) - (639,679)
Partners' Capital
March 31, 1996 29,751,761 $21,532,794 $530,954 $22,063,748
Partners' Capital
December 31, 1996 24,873.763 $21,020,037 $622,968 $21,643,005
Net Income - 2,641,695 78,878 2,720,573
Redemptions (1,069.189) (1,028,334) - (1,028,334)
Partners' Capital
March 31, 1997 23,804.574 $22,633,398 $701,846 $23,335,244
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 2,720,573 (1,641,089)
Noncash item included in net income (loss):
Net change in unrealized (414,364) 802,051
(Increase)decrease in operating assets:
Net option premiums 41,033 (212,488)
Receivable from DWR 82,856 (32,687)
Interest receivable (DWR) (10,197) 11,270
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) 7,466 (36,155)
Accrued management fees 4,047 (5,546)
Administrative expenses payable 9,123 (14,254)
Accrued transaction fees and costs (765) (129)
Net cash provided by (used for) operating activities 2,439,772 (1,129,027)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (77,508) (126,614)
Redemptions of units (1,028,334) (639,679)
Net cash used for financing activities (1,105,842) (766,293)
Net increase (decrease) in cash 1,333,930 (1,895,320)
Balance at beginning of period 20,791,474 23,419,888
Balance at end of period 22,125,404 21,524,568
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, 1996 Annual Report on Form 10K.
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 ("Demeter"). The commodity broker is Dean Witter
Reynolds Inc. ("DWR"). Both Demeter and DWR are wholly-owned
subsidiaries of Dean Witter, Discover & Co. ("DW"). Demeter has
retained Abacus Asset Management Inc. ("ABACUS"), ELM Financial,
Inc., EMC Capital Management, Inc., and Millburn Ridgefield
Corporation as the trading advisors of the Partnership. Effective
March 1, 1997, ABACUS was removed as a trading advisor and
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
partnership assets previously managed by ABACUS were reallocated
to the remaining advisors.
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.
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 March 31, 1997 and
December 31, 1996, open contracts were:
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Contract or Notional Amount
March 31, 1997 December 31, 1996
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 1,690,000 21,821,000
Commitments to Sell 104,670,000 86,598,000
Commodity Futures:
Commitments to Purchase 21,032,000 4,784,000
Commitments to Sell 4,462,000 12,396,000
Foreign Futures:
Commitments to Purchase 14,867,000 89,863,000
Commitments to Sell 98,790,000 5,713,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 32,585,000 29,783,000
Commitments to Sell 33,365,000 36,562,000
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.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The 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 $1,490,737 and
$1,076,373 at March 31, 1997 and December 31, 1996, respectively.
Of the $1,490,737 net unrealized gain on open contracts at March
31, 1997, $1,518,149 was related to exchange-traded futures
contracts and $(27,412) related to off-exchange-traded forward
currency contracts. Of the $1,076,373 net unrealized gain on
open contracts at December 31, 1996, $1,046,658 related to
exchange-traded futures contracts and $29,715 related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1997 and December 31, 1996 mature through March 1998
and June 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at March 31, 1997 and
December 31, 1996 mature through April 1997 and January 1997,
respectively. 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
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
counterparty nonperformance. The credit risk associated with
these instruments is limited to the amounts reflected in the
Partnership's Statements of Financial Condition.
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 and options contracts, which funds totaled $23,643,553
and $21,838,132 at March 31, 1997 and December 31, 1996,
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
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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.
For the quarter ended March 31, 1997 and the year ended December
31, 1996, the average fair value of financial instruments held
for trading purposes was as follows:
March 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 11,197,000 74,970,000
Options on Financial Futures 4,192,000 -
Commodity Futures 13,061,000 8,312,000
Foreign Futures 56,989,000 41,739,000
Off-Exchange-Traded Forward
Currency Contracts 30,585,000 36,102,000
December 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 50,976,000 52,598,000
Options on Financial Futures 9,545,000 -
Commodity Futures 7,374,000 6,609,000
Foreign Futures 59,550,000 15,161,000
Options on Foreign Futures 541,000 -
Off-Exchange-Traded Forward
Currency Contracts 35,955,000 41,296,000
<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, 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 and forward
contracts and other commodity interests may be illiquid. If the
price for 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
<PAGE>
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.
There is no limitation on daily price moves in trading forward
contracts on foreign currencies. 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 Limited
Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions.
<PAGE>
Results of Operations
For the Quarter Ended March 31, 1997
For the quarter ended March 31, 1997, the Partnership's total
trading revenues including interest income were $3,342,967.
During the first quarter, the Partnership posted a gain in Net
Asset Value per Unit. During the first quarter, the Partnership
posted a gain in Net Asset Value per Unit. The most significant
gains were recorded during January and February in the currency
markets as the value of the U.S. dollar increased relative to
most major European currencies, as well as the Japanese yen. A
portion of these gains was offset by losses recorded from
transactions involving the British pound during January and
February. Trading in soft commodities during January and
February resulted in gains from long coffee futures positions as
prices trended steadily higher, before reversing lower during
March. Additional profits were recorded in February and March
from long positions in soybean, corn and wheat futures as prices
in these markets moved higher. In global financial futures,
gains were recorded during March from short U.S. interest rate
futures positions as domestic bond prices moved sharply lower
late in the month. These gains, coupled with smaller profits
from trading French and Australian bond futures, more than offset
losses recorded in these same
<PAGE>
markets during January and February, and in February from trading
Japanese bond futures. A portion of the Partnership's overall
gains was offset by losses recorded in the energy markets due to
trendless movement in oil and gas prices during January and
March. Smaller losses were recorded in the metals markets during
February and March. Total expenses for the quarter were $622,394
generating net income of $2,720,573. The value of an individual
Unit in the Partnership increased from $870.11 at December 31,
1996 to $980.28 at March 31, 1997.
For the Quarter Ended March 31, 1996
For the quarter ended March 31, 1996, the Partnership's total
trading losses net of interest income were $974,745. During the
first quarter, the Partnership posted a loss in Net Asset Value
per Unit. The most significant losses were recorded during
February as dramatic price trend reversals were experienced in
several key market sectors, particularly the currency and
financial futures markets. In the currency markets, sharp and
sudden moves higher in the value of the Japanese yen, German mark
and Swiss franc resulted in losses for the Fund's previously
established short positions in these currencies. Trading in
global financial futures during February resulted in additional
<PAGE>
losses as the previous upward trend in interest rate and stock
index futures prices reversed dramatically lower. As a result,
losses were recorded primarily in European financial futures.
Smaller losses were recorded in traditional commodities during
the quarter as metals and soft commodities prices moved in a
trendless pattern during both February and March and from trading
in global financial futures during March. A portion of these
losses was offset by gains recorded from currency trading during
January as short positions in the Japanese yen and most major
European currencies profited from a decline in the value of these
currencies relative to the U.S. dollar. Additional profits
during January were recorded from long positions in European bond
futures as prices moved higher. Currency trading during March
also helped in offsetting losses for the quarter as transactions
involving the Japanese yen and Australian dollar were profitable.
Total expenses for the quarter were $666,344 resulting in a net
loss of $1,641,089. The value of an individual Unit in the
Partnership decreased from $796.35 at December 31, 1995 to
$741.59 at March 31, 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997, 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, Demeter, Dean Witter
Futures & Currency Management, Inc., DWD (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.
Similar purported class actions were also filed on September 18
and 20, 1996 in the Supreme Court of the State of New York, New
York County, and on November 14, 1996 in the Superior Court of
the State of Delaware, New Castle 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. 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
<PAGE>
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 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)
May 9, 1997 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> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 22,125,404
<SECURITIES> 0
<RECEIVABLES> 217,723<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 23,902,010<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 23,902,010<F3>
<SALES> 0
<TOTAL-REVENUES> 3,342,967<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 622,394
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,720,573
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,720,573
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,720,573
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include receivable from DWR of $135,454 and interest
receivable of $82,269.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,490,737, and net option premiums of $68,146.
<F3>Liabilities include redemptions payable of $371,216, accrued brokerage
commissions of $99,380, accrued management fees of $59,414, accrued
administrative expenses of $28,168 and accrued transaction fees and
costs of $8,588.
<F4>Total revenues include realized trading revenue of $2,699,303, net
change in unrealized of $414,364 and interest income of $229,300.
</FN>
</TABLE>
