UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
AMENDMENT
[X] Annual report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [Fee Required]
For the period ended December 31, 1996 or
[ ] Transition report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from ________________to___________________
Commission File Number 33-42360
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
(Exact name of registrant as specified in its Limited Partnership Agreement)
DELAWARE 13-3642323
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
c/o Demeter Management Corporation
Two World Trade Center, New York, N.Y. - 62nd Flr. 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Units of Limited Partnership Interest
(Title of Class)
(Title of Class)
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (section 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by reference in
Part III of this Form 10-K or any amendment of this Form 10K. [ X ]
State the aggregate market value of the Units of Limited Partnership Interest
held by non-affiliates of the registrant. The aggregate market value shall be
computed by reference to the price at which units were sold, or the average bid
and asked prices of such units, as of a specified date within 60 days prior to
the date of filing: $22,469,170.71 at January 31, 1997.
DOCUMENTS INCORPORATED BY REFERENCE
(See Page 1)
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<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
INDEX TO ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 1996
<CAPTION>
Page No.
<S> <C>
DOCUMENTS INCORPORATED BY REFERENCE. . . . . . . . . . . . . . . . . 1
Part I .
Item 1. Business. . . . . . . . . . . . . . . . . . . . . . . 2-3
Item 2. Properties. . . . . . . . . . . . . . . . . . . . . . 4
Item 3. Legal Proceedings. . . . . . . . . . . . . . . . . . . 4-5
Item 4. Submission of Matters to a Vote of Security Holders . . .5
Part II.
Item 5. Market for the Registrant's Partnership Units and
Related Security Holder Matters . . . . . . . . . . . . .6
Item 6. Selected Financial Data . . . . . . . . . . . . . . . . .7
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . .8-13
Item 8. Financial Statements and Supplementary Data. . . . . . .13
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure. . . . . . . . . . .13
Part III.
Item 10. Directors, Executive Officers, Promoters and
Control Persons of the Registrant . . . . . . . . . 14-17
Item 11. Executive Compensation . . . . . . . . . . . . . . . . 17
Item 12. Security Ownership of Certain Beneficial Owners
and Management . . . . . . . . . . . . . . . . . . . . 17
Item 13. Certain Relationships and Related Transactions . . . . 18
Part IV.
Item 14. Exhibits, Financial Statement Schedules, and
Reports on Form 8-K . . . . . . . . . . . . . . . . . . 19
</TABLE>
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<TABLE>
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the following documents are incorporated by reference as
follows:
<CAPTION>
Documents Incorporated Part of Form 10-K
<S> <C>
Partnership's Registration Statement
On Form S-1, File No. 33-44008 I and IV
Dean Witter Global Perspective Portfolio L.P.
Supplement (Dated April 27, 1992) to the I and IV
Prospectus
December 31, 1996 Annual Report for
the Dean Witter Global Perspective II and IV
Portfolio L.P.
</TABLE>
<PAGE>
PART I
Item 1. BUSINESS
(a) General Development of Business. Dean Witter Global Perspective
Portfolio L.P. (the "Partnership") is a Delaware limited partnership
formed to engage in the speculative trading of commodity futures contracts
and other commodity interests, including, but not limited to, forward
contracts on foreign currencies and options on futures contracts and
physical commodities.
Units of limited partnership interest in the Partnership were
registered pursuant to a Registration Statement on Form S-1 (File No. 33-
44008) which became effective on December 31, 1991. The offering of units
was underwritten on a "best efforts" basis by Dean Witter Reynolds Inc.
("DWR"), a commodity broker and an affiliated corporation of the
Partnership's general partner, Demeter Management Corporation ("Demeter).
The Partnership commenced operations on March 1, 1992. The Partnership's
net asset value per unit, as of December 31, 1996, was $870.11,
representing an increase of 9.26 percent from the net asset value per unit
of $796.35 at December 31, 1995. For a more detailed description of the
Partnership's business see subparagraph (c).
(b) Financial Information about Industry Segments. The
Partnership's business comprises only one segment for financial reporting
purposes, speculative trading of commodity futures contracts and other
commodity interests. The relevant financial information is presented in
Items 6 and 8.
(c) Narrative Description of Business. The Partnership is in the
business of speculative trading in commodity futures contracts and other
commodity interests, pursuant to trading instructions provided by Abacus
Management Inc., ELM Financial, Inc., EMC Capital Management, Inc., and
<PAGE>
Millburn Ridgefield Corporation, its independent trading advisors (the
"Trading Advisors"). For a detailed description of the different facets
of the Partnership's business, see those portions of the Partnership's
Prospectus, dated December 31, 1991, filed as part of the Registration
Statement on Form S-1 (see "Documents Incorporated by Reference" Page 1),
set forth below.
Facets of Business
1. Summary 1. "Summary of the Prospectus"
(Pages 1-6).
2. Commodity Markets 2. "The Commodities Markets"
(Pages 66-73).
3. Partnership's Commodity 3. "Trading Policies" (Page 61)
Trading Arrangements and "The Trading Managers"
Policies (Pages 32-60).
4. Management of the Part- 4. "The Management Agreement"
nership (Pages 63-66). "The General
Partner" (Pages 30-32) and
"The Commodity Broker" (Pages
61-63). "The Limited Partner-
ship Agreement" (Pages 75-
78).
5. Taxation of the Partner- 5. "Federal Income Tax Aspects"
ship's Limited Partners and "State and Local Income
Tax Aspects" (Pages 81-88).
(d) Financial Information About Foreign and Domestic Operations and
Export Sales.
The Partnership has not engaged in any operations in foreign
countries; however, the Partnership (through the commodity broker) enters
into forward contract transactions where foreign banks are the contracting
party, and futures contracts on foreign exchanges.
<PAGE>
Item 2. PROPERTIES
The executive and administrative offices are located within the
offices of DWR. The DWR offices utilized by the Partnership are located
at Two World Trade Center, 62nd Floor, New York, NY 10048.
Item 3. LEGAL PROCEEDINGS
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, Demeter, Dean
Witter Futures & Currency Management, Inc. ("DWFCM"), Dean Witter,
Discover & Co. ("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 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
<PAGE>
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.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
<PAGE>
PART II
Item 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND RELATED
SECURITY HOLDER MATTERS
There is no established public trading market for the Units of
Limited Partnership Interest in the Partnership. The number of holders of
Units at December 31, 1996 was approximately 3,023. No distributions have
been made by the Partnership since it commenced trading operations on
March 1, 1992. Demeter has sole discretion to decide what distributions,
if any, shall be made to investors in the Partnership. No determination
has yet been made as to future distributions.
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<TABLE>
Item 6. SELECTED FINANCIAL DATA (in dollars)
<CAPTION>
For the
Period from
March 1, 1992
(commencement of
For the Years Ended December 31, operations) to
<S> <C> <C> <C> <C> <C>
1996 1995 1994 1993 December 31, 1992
Total Revenues
(including interest) 4,375,881 7,723,714 (11,717,844) 3,624,312 10,292,384
Net Income (Loss) 1,766,076 4,586,655 (16,267,965) (2,839,770) 4,779,725
Net Income (Loss)
Per Unit (Limited
& General Partners) 73.76 114.30 (315.44) (48.86) 46.35
Total Assets 22,267,408 24,852,070 29,736,302 57,650,086 71,469,432
Total Limited
Partners' Capital 21,020,037 23,774,361 28,148,186 55,968,381 69,176,135
Net Asset Value Per
Unit of Limited
Partnership Interest 870.11 796.35 682.05 997.49 1,046.35
</TABLE>
<PAGE>
Item 7. 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, the commodity broker, and
are used by the Partnership as margin to engage in commodity futures,
forward contracts and other commodity interest trading. DWR holds such
assets in either designated depositories or in securities approved by the
Commodity Futures Trading Commission ("CFTC") 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 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 contracts, forward
contracts and other commodity interests may be illiquid. If the price for
a 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.
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.
<PAGE>
Either of these market conditions could result in restrictions on
redemptions.
Market Risk. The Partnership trades futures, options and forward
contracts in interest rates, stock indices, commodities and currencies.
In entering into these contracts there exists a risk to the Partnership
(market risk) that such contracts may be significantly influenced by
market conditions, such as interest rate volatility, resulting in such
contracts being less valuable. If the markets should move against all of
the futures interest positions held by the Partnership at the same time,
and if the Trading Advisors were unable to offset futures interest
positions of the Partnership, the Partnership could lose all of its assets
and the Limited Partners would realize a 100% loss. The Partnership has
established Trading Policies, which include standards for liquidity and
leverage which help control market risk. Both the Trading Advisors and
Demeter monitor the Partnership's trading activities on a daily basis to
ensure compliance with the Trading Policies. Demeter may (under terms of
the Management Agreements) override the trading instructions of a Trading
Advisor to the extent necessary to comply with the Partnership's Trading
Policies.
Credit Risk. In addition to market risk, the Partnership is subject
to credit risk in that a counterparty may not be able to meet its
obligations to the Partnership. The counterparty of the Partnership for
futures contracts traded in the United States and most foreign exchanges
on which the Partnership trades is the clearinghouse associated with such
exchange. In general, a clearinghouse is backed by the membership of the
exchange and will act in the event of non-performance by one of its
members or one of its member's customers, and as such, should
significantly reduce this credit risk. In cases where the Partnership
<PAGE>
trades on exchanges where the clearinghouse is not funded or guaranteed by
the membership, or where the exchange is a "principals' market" in which
performance is the responsibility of the exchange member and not the
exchange or a clearinghouse, or when the Partnership enters into off-
exchange member and not the exchange or a clearinghouse, or when the
Partnership enters into off-exchange contracts with a counterparty, the
sole recourse of the Partnership will be the clearinghouse, the exchange
member or the off-exchange contract counterparty, as the case may be. or
when the Partnership enters into off-exchange contracts with a counter-
party, the sole recourse of the Partnership will be the clearinghouse or
the counterparty as the case may be. With respect to futures contracts,
DWR, in its business as an international commodity broker, constantly
monitors the credit-worthiness of the exchanges and clearing members of
the foreign exchanges with which it does business for clients, including
the Partnership. DWR employees also from time to time serve on
supervisory or management committees of such exchanges. If DWR believed
that there was a problem with the creditworthiness of an exchange on which
the Partnership deals, it would so advise Demeter. With respect to
exchanges of which DWR is not a member, DWR acts only through clearing
brokers it has determined to be creditworthy. If DWR believed that a
clearing broker with which it deals on behalf of clients were not
creditworthy, it would terminate its relationship with such broker.
While DWR monitors the creditworthiness and risks involved in
dealing on the various exchanges (and their clearinghouses) and with other
exchange members, there can be no assurance that an exchange (or its
clearinghouse) or other exchange member will be able to meet its
obligations to the Partnership. DWR has not undertaken to indemnify the
Partnership against any loss. Further, the law is unclear, particularly
<PAGE>
with respect to trading in various non-U.S. jurisdictions, as to whether
DWR has any obligation to protect the Partnership from any liability in
the event that an exchange or its clearinghouse or another exchange member
defaults on its obligations on trades effected for the Partnership.
Although DWR monitors the creditworthiness of the foreign exchanges
and clearing brokers with which it does business for clients, DWR does not
have the capability to precisely quantify the Partnership's exposure to
risks inherent in its trading activities on foreign exchanges, and, as a
result, the risk is not monitored by DWR on an individual client basis
(including the Partnership). In this regard, DWR must clear its customer
trades through one or more other clearing brokers on each exchange where
DWR is not a clearing member. Such other clearing brokers calculate the
net margin requirements of DWR in respect of the aggregate of all of DWR's
customer positions carried in DWR's omnibus account with that clearing
broker. Similarly, DWR calculates a net margin requirement for the
exchange-traded futures positions of each of its customers, including the
Partnership. Neither DWR nor DWR's respective clearing brokers on each
foreign futures exchange calculates the margin requirements of an
individual customer, such as the Partnership, in respect of the customer's
aggregate contract positions on any particular exchange. With respect to
forward contract trading, the Partnership trades with only those
counterparties which Demeter, together with DWR, have determined to be
creditworthy. As set forth in the Partnership's Trading Policies, in
determining creditworthiness, Demeter and DWR consult with the Corporate
Credit Department of DWR. Currently, the Partnership deals solely with
DWR as its counterparty on forward contracts. While DWR and Demeter
monitor creditworthiness and risk involved in dealing on the various
exchanges and with counterparties, there can be no assurance that an
<PAGE>
exchange or counterparty will be able to meet its obligations to the
Partnership. See "Financial Instruments", under Notes to Financial
Statements - to the Partnership's Financial Statements in its 1996 Annual
Report to Partners, incorporated by reference in this Form 10-K.
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, forward contracts on foreign currencies and other
commodity interests in subsequent periods. 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. As of December 31, 1996, the Partnership's
total capital was $21,643,005, a decrease of $2,701,511 from the
Partnership's total capital of $24,344,516 at December 31, 1995. For the
year ended December 31, 1996, the Partnership generated net income of
$1,766,076 and total redemptions aggregated $4,467,587.
For the year ended December 31, 1996, the Partnership's total
trading revenues including interest income were $4,375,881. The
Partnership's total expenses for the year were $2,609,805, resulting in
net income of $1,766,076. The value of an individual unit in the
Partnership increased from $796.35 at December 31, 1995 to $870.11 at
December 31, 1996.
As of December 31, 1995, the Partnership's total capital was
$24,344,516, a decrease of $4,291,994 from the Partnership's total capital
of $28,636,510 at December 31, 1994. For the year ended December 31,
1995, the Partnership generated net income of $4,586,655 and total
redemptions aggregated $8,878,649.
<PAGE>
For the year ended December 31, 1995, the Partnership's total
trading revenues including interest income were $7,723,714. The
Partnership's total expenses for the year were $3,137,059, resulting in
net income of $4,586,655. The value of an individual unit in the
Partnership increased from $682.05 at December 31, 1994 to $796.35 at
December 31, 1995.
As of December 31, 1994, the Partnership's total capital was
$28,636,510, a decrease of $28,046,033 from the Partnership's total
capital of $56,682,543 at December 31, 1993. For the year ended December
31, 1994, the Partnership incurred a net loss of $16,267,965 and total
redemptions aggregated $11,778,068.
For the year ended December 31, 1994, the Partnership's total
trading losses net of interest income were $11,717,844. The Partnership's
total expenses for the year were $4,550,121, resulting in a net loss of
$16,267,965. The value of an individual unit in the Partnership decreased
from $997.49 at December 31, 1993 to $682.05 at December 31, 1994.
The Partnership's overall performance record represents varied
results of trading in different commodity markets. For a further
description of trading results, refer to the letter to the Limited
Partners in the accompanying 1996 Annual Report to Partners, incorporated
by reference in this Form 10-K. The Partnership's gains and losses are
allocated among its Limited Partners for income tax purposes.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this Item appears in the attached 1996
Annual Report to Partners and is incorporated by reference in this Annual
Report on Form 10-K.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
<PAGE>
PART III
Item 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
PERSONS OF THE REGISTRANT
General Partner
Demeter, a Delaware corporation, was formed on August 18, 1977 to
act as a commodity pool operator and is registered with the CFTC as a
commodity pool operator and currently is a member of the National Futures
Association ("NFA") in such capacity. Demeter is wholly-owned by DWD and
is an affiliate of DWR. DWD, DWR and Demeter may each be deemed to be
"promoters" and/or a "parent" of the Partnership within the meaning of the
federal securities laws.
Dean Witter Reynolds Inc.
DWR is a financial services company which provides to its
individual, corporate and institutional clients services as a broker in
securities and commodity interest contracts, a dealer in corporate,
municipal and government securities, an investment banker, an investment
adviser and an agent in the sale of life insurance and various other
products and services. DWR is a member firm of the New York Stock
Exchange, the American Stock Exchange, the Chicago Board Options Exchange,
and other major securities exchanges, and is a clearing member of the
Chicago Board of Trade, the Chicago Mercantile Exchange, the Commodity
Exchange Inc., and other major commodities exchanges.
DWR is registered with the CFTC as a futures commission merchant and
is a member of the NFA in such capacity. DWR is currently servicing its
clients through a network of 371 branch offices with approximately 9,080
account executives servicing individual and institutional client accounts.
<PAGE>
Directors and Officers of the General Partner
The directors and officers of Demeter as of December 31, 1996 are as
follows:
Richard M. DeMartini, age 44, is the Chairman of the Board and a
Director of Demeter. Mr. DeMartini is also the Chairman of the Board and
a Director of DWFCM, a registered commodity trading advisor. Mr.
DeMartini has served as President and Chief Operating Officer of Dean
Witter Capital, a division of DWR since January 1989. From January 1988
until January 1989, Mr. DeMartini served as President and Chief Operating
Officer of the Consumer Banking Division of DWD, and from May 1985 until
January 1988 was President and Chief Executive Officer of the Consumer
Markets Division of DWD. Mr. DeMartini currently serves as a Director of
DWD and DWR, and has served as an officer of DWR for the past five years.
Mr. DeMartini has been with DWD and its affiliates for 22 years.
Mark J. Hawley, age 53, is President and a Director of Demeter. Mr.
Hawley joined DWR in February 1989 and currently serves as Executive Vice
President and Director of DWR's Managed Futures and Precious Metals
Department. Mr. Hawley also serves as President of DWFCM. From 1978 to
1989, Mr. Hawley was a member of the senior management team at Heinold
Asset Management, Inc., a commodity pool operator, and was responsible for
a variety of projects in public futures funds. From 1972 to 1978, Mr.
Hawley was a Vice President in charge of institutional block trading for
the Mid-West at Kuhn Loeb & Co.
Lawrence Volpe, age 49, is a Director of Demeter and DWFCM. Mr.
Volpe joined DWR as a Senior Vice President and Controller in September
1983, and currently holds those positions. From July 1979 to September
<PAGE>
1983, he was associated with E.F. Hutton & Company Inc. and prior to his
departure, held the positions of First Vice President and Assistant
Controller. From 1970 to July 1979, he was associated with ARthur
Anderson & Co. and prior to his departure he served as audit manager in
the financial services division.
Joseph Siniscalchi, age 51, is a Director of Demeter. Mr.
Siniscalchi joined DWR in July 1984 as a First Vice President, Director of
General Accounting. He is currently Senior Vice President and Controller
of the Dean Witter Financial Division of DWR. From February 1980 to July
1984, Mr. Siniscalchi was Director of Internal Audit at Lehman Brothers
Kuhn Loeb, Inc.
Laurence E. Mollner, age 55, is a Director of Demeter. Mr. Mollner
joined DWR in May 1979 as Vice President and Director of Commercial Sales.
He is currently Executive Vice President and Deputy Director of the
Futures Markets Division of DWR.
Edward C. Oelsner III, age 54, is a Director of Demeter. Mr.
Oelsner joined DWR in March 1981 as a Managing Director in the Corporate
Finance Department. He currently manages DWR's Retail Products Group
within the Corporate Finance Department. While Mr. Oelsner has extensive
experience in the securities industry, he has no experience in commodity
interests trading.
Robert E. Murray, age 36, is a Director of Demeter. Mr. Murray is
currently a Senior Vice President of the DWR Managed Futures Division and
is a Director and the Senior Administrative Officer of DWFCM. Mr. Murray
graduated from Geneseo State University in May 1983 with a B.A. degree in
Finance. Mr. Murray began at DWR in 1984 and is currently the Director of
Product Development for the Managed Futures Division and is responsible
for the development and maintenance of the proprietary Fund Management
<PAGE>
System utilized by Demeter and DWFCM for organizing information and
producing reports for monitoring investors' accounts.
Patti L. Behnke, age 36, is Vice President and Chief Financial
Officer of Demeter. Ms. Behnke joined DWR in 1991 as Assistant Vice
President of Financial Reporting and is currently First Vice President and
Director of Financial Reporting and Managed Futures Accounting in the
Capital Markets division of DWR. From August 1988 to September 1990, Ms.
Behnke was Assistant Controller of L.F. Rothschild & Co. and from
September 1986 to August 1988, she was associated with Carteret Savings
Bank as Assistant Vice President - Financial Analysis. From April 1982 to
September 1986, Ms. Behnke was an auditor at Arthur Andersen & Co.
Item 11. EXECUTIVE COMPENSATION
The Partnership has no directors and executive officers. As a limited
partnership, the business of the Partnership is managed by Demeter which is
responsible for the administration of the business affairs of the Partnership
but receives no compensation for such services.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Security Ownership of Certain Beneficial Owners - As of December
31, 1996, there were no persons as beneficial owners of more than 5 percent of
the Units of Limited Partnership Interest in the Partnership.
(b) Security Ownership of Management - At December 31, 1996, Demeter
owned 715.962 Units of General Partnership Interest representing a 2.88 percent
interest in the Partnership.
(c) Changes in Control - None
<PAGE>
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Refer to Note 2 - "Related Party Transactions" of "Notes to Financial
Statements", in the accompanying 1996 Annual Report to Partners, incorporated
by reference in this Form 10-K. In its capacity as the Partnership's retail
commodity broker, DWR received commodity brokerage commissions (paid and
accrued by the Partnership) of $1,679,928 for the period ended December 31,
1996.
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. Listing of Financial Statements
The following financial statements and report of independent accountants,
all appearing in the accompanying 1996 Annual Report to Partners, are
incorporated by reference in this Form 10-K:
- Report of Deloitte & Touche LLP, independent auditors, for the years
ended December 31, 1996, 1995 and 1994.
- Statements of Financial Condition as of December 31, 1996 and 1995.
- Statements of Operations, Changes in Partners' Capital, and Cash
Flows for the years ended December 31, 1996, 1995 and 1994.
- Notes to Financial Statements.
With the exception of the aforementioned information and the information
incorporated in Items 7, 8 and 13, the 1996 Annual Report to Partners is not
deemed to be filed with this report.
2. Listing of Financial Statement Schedules
No financial statement schedules are required to be filed with this report.
(b) Reports on Form 8-K
No reports on Form 8-K have been filed by the Partnership during the last
quarter of the period covered by this report.
(c) Exhibits
Refer to Exhibit Index on Page E-1.
<PAGE>
SIGNATURES
Pursuant to the requirement of Sections 13 or 15(d) 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
March 27, 1997 BY: /s/ Mark J. Hawley
Mark J. Hawley, Director and
President
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
Demeter Management Corporation.
BY: /s/ Mark J. Hawley March 27, 1997
Mark J. Hawley, Director and
President
/s/ Richard M. DeMartini March 27, 1997
Richard M. DeMartini, Director
and Chairman of the Board
/s/ Lawrence Volpe March 27, 1997
Lawrence Volpe, Director
/s/ Laurence E. Mollner March 27, 1997
Laurence E. Mollner, Director
/s/ Joseph G. Siniscalchi March 27, 1997
Joseph G. Siniscalchi, Director
/s/ Edward C. Oelsner III March 27, 1997
Edward C. Oelsner III, Director
/s/ Robert E. Murray March 27, 1997
Robert E. Murray, Director
/s/ Patti L. Behnke March 27, 1997
Patti L. Behnke, Chief Financial
Officer and Principal Accounting
Officer
<PAGE>
EXHIBIT INDEX
ITEM METHOD OF FILING
-3. Limited Partnership Agreement of
the Partnership, dated as of
November 7, 1991. (1)
- -10. Management Agreements among the
Partnership, Demeter Management
Corporation and A.O. Management, (2)
Inc., Chang Crowell and Millburn
each dated as of December 31, 1991.
- -10. Customer Agreement Between the
Partnership and Dean Witter
Reynolds Inc., dated as of (3)
December 31, 1991.
- -10. Management Agreement among the
Partnership, Demeter Management
Corporation and ELM Financial (6)
Incorporated dated as of
May 1, 1994.
- -10. Management Agreement among the
Partnership, Demeter Management
Corporation and EMC Capital (7)
Managements, Inc. dated as of
June 1, 1994.
- -13. December 31, 1996 Annual Report to Limited Partners. (4)
- -21. Supplement (dated April 27, 1992)
to the Prospectus. (5)
(1) Incorporated by reference to Exhibit 3.01 and Exhibit 3.02 of the
Partnership's Registration Statement on Form S-1.
(2) Incorporated by reference to Exhibit 10.02 of the Partnership's
Registration Statement on Form S-1.
(3) Incorporated by reference to Exhibit 10.01 of the Partnership's
Registration Statement on Form S-1.
(4) Filed herewith.
(5) Incorporated by reference to the Partnership's Registration Statement on
Form S-1, Post Effective Amendment Number 1.
(6) Incorporated by reference to Exhibit 10.03 of the Partnership's Annual
Report on Form 10-K for the fiscal year ended December 31, 1994.
(7) Incorporated by reference to Exhibit 10.04 of the Partnership's Annual
Report on Form 10-K for the fiscal year ended December 31, 1994.
<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> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 20,791,474
<SECURITIES> 0
<RECEIVABLES> 290,382
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 22,267,408<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 22,267,408<F2>
<SALES> 0
<TOTAL-REVENUES> 4,375,881<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,609,805
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,766,076
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,766,076
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,766,076
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $3,368,107, $1,076,373 and option premiums paid
$109,179.
<F2>Liabilities include redemptions payable of $134,889, accrued incentive
fees of $448,724, accrued management fees of $55,367 accrued brokerage
commissions of $91,914, common administrative expenses payable of $17,045,
and accrued transaction fees and costs of $9,353.
<F3>Total revenues include realized trading revenue of $3,670,678, net change
in unrealized of ($158,241) and interest income of $863,444.
</FN>
</TABLE>
<PAGE>
Global
Perspective
Portfolio
December 31, 1996
Annual Report
[LOGO]DEAN WITTER
<PAGE>
DEAN WITTER
Two World Trade Center
62nd Floor
New York, NY 10048
Telephone (212) 392-8899
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
ANNUAL REPORT
1996
Dear Limited Partner:
This marks the fifth annual report for the Global Perspective Portfolio L.P.
(the "Fund"). The Fund began the year trading at a Net Asset Value per Unit of
$796.35 and finished 1996 at a Net Asset Value per Unit of $870.11, a net gain
of 9.3%. The Fund has decreased by 13.0% since its inception of trading in
March 1992 ( a compound annualized return of -2.8%).
The Fund recorded gains during January as short Japanese yen positions profited
from a decline in value versus the U.S. dollar. Smaller currency gains were
recorded from short positions in the Swiss franc, German mark and British pound
as the value of these currencies also moved lower during the month. Additional
gains were recorded in the financial futures markets due to an increase in
European bond futures prices. The Fund recorded significant losses during
February due to a sharp trend reversal in the value of the Japanese yen and
most major European currencies. Additional losses were recorded from previously
established long positions in global interest rate and stock index futures as
this previous upward trend also reversed sharply. During March, losses were
experienced from trading Japanese, European and Australian interest rate and
stock index futures as prices moved in a short-term volatile pattern. Smaller
losses were experienced from trading gold and copper futures as prices in these
markets moved in a trendless pattern.
During April, the Fund recorded gains from short German mark and Swiss franc
<PAGE>
positions as the value of these currencies moved lower relative to the U.S.
dollar. Additional gains were recorded in the agricultural and energy markets.
In May, the Fund recorded losses from trading global interest rate and stock
index futures as prices moved in a trendless pattern. Additional losses were
experienced in currencies from transactions involving the Japanese yen and
German mark as the value of these currencies moved in a choppy pattern. The
Fund experienced relatively flat performance during June as gains in metals and
energies offset losses in global interest rate futures.
In July, gains were recorded from transactions involving the German mark and
most other European currencies. Smaller gains were recorded in the soft
commodities and metals markets. A majority of these gains was offset by losses
in the energy and financial futures markets. The Fund recorded losses during
August from long German mark positions as its value moved lower versus the U.S.
dollar. Additional losses were recorded from transactions involving the Swiss
franc and Japanese yen. Gains from long positions in energy and financial
futures markets offset a portion of these losses as prices in these markets
moved higher during the month. During September, profits were recorded from
long positions in Japanese, French and Italian interest rate futures as
international bond futures prices moved higher. Additional gains were recorded
as oil prices continued to trend higher. Smaller gains were recorded in the
currency, agricultural and metals markets.
Significant gains were recorded during October as long positions in Japanese,
U.S., European and Australian interest rate futures profited from a continued
upward move in international bond futures prices. Substantial gains were also
recorded from short Japanese yen positions as its value moved lower relative to
the U.S. dollar and
<PAGE>
other world currencies. The Fund also recorded strong gains during November
from long positions in European and U.S. interest rate futures as global bond
futures prices continued to trend higher. Additional gains were recorded from
long copper and natural gas futures positions as prices in
these markets also moved higher. During December, losses were recorded as a
result of a sudden reversal in global interest rate futures prices early in the
month. Additional losses were recorded in energies and metals as prices moved
in a short-term volatile pattern.
Overall, the Fund recorded net profits for the year due primarily to trading in
the currency markets between July and October. Additional gains were recorded
in the energy markets from an increase in gas prices late in the year. Although
significant gains were recorded in global interest rate futures as strong
trends prevailed later in the year, overall net losses were recorded within
this market complex for the year from trendless price movement during a
majority of the first and second quarters.
Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd Floor,
New York, NY 10048, or your Dean Witter Account Executive.
I hereby affirm, that to the best of my knowledge and belief, the information
contained in this report is accurate and complete. Past performance is not a
guarantee of future results.
Sincerely,
/s/ Mark J. Hawley
Mark J. Hawley
President
Demeter Management Corporation
General Partner
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
INDEPENDENT AUDITORS' REPORT
The Limited Partners and the General Partner:
We have audited the accompanying statements of financial condition of Dean
Witter Global Perspective Portfolio L.P. (the "Partnership") as of December 31,
1996 and 1995 and the related statements of operations, changes in partners'
capital, and cash flows for each of the three years in the period ended
December 31, 1996. These statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Dean Witter Global Perspective Portfolio
L.P. as of December 31, 1996 and 1995 and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 1996 in
conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
February 17, 1997
New York, New York
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------
1996 1995
---------- ----------
$ $
<S> <C> <C>
ASSETS
Equity in Commodity futures trading accounts:
Cash 20,791,474 23,419,888
Net unrealized gain on open contracts 1,076,373 1,234,614
Net option premiums 109,179 68,262
---------- ----------
Total Trading Equity 21,977,026 24,722,764
Due from DWR 218,310 43,173
Interest receivable (DWR) 72,072 86,133
---------- ----------
Total Assets 22,267,408 24,852,070
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Redemptions payable 448,724 360,179
Accrued brokerage commissions (DWR) 91,914 60,522
Accrued management fees 55,367 61,428
Accrued administrative expenses 19,045 20,150
Accrued transaction fees and costs 9,353 5,275
---------- ----------
Total Liabilities 624,403 507,554
---------- ----------
PARTNERS' CAPITAL
Limited Partners (24,157.801 and 29,854.232 Units,
respectively) 21,020,037 23,774,361
General Partner (715.962 Units) 622,968 570,155
---------- ----------
Total Partners' Capital 21,643,005 24,344,516
---------- ----------
Total Liabilities and Partners' Capital 22,267,408 24,852,070
========== ==========
NET ASSET VALUE PER UNIT 870.11 796.35
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEARS
ENDED
DECEMBER 31,
---------------------------------
1996 1995 1994
--------- --------- -----------
$ $ $
<S> <C> <C> <C>
REVENUES
Trading Profit (Loss):
Realized 3,670,678 6,709,102 (11,864,810)
Net change in unrealized (158,241) (238,638) (1,184,566)
--------- --------- -----------
Total Trading Results 3,512,437 6,470,464 (13,049,376)
Interest income (DWR) 863,444 1,253,250 1,331,532
--------- --------- -----------
Total Revenues 4,375,881 7,723,714 (11,717,844)
--------- --------- -----------
EXPENSES
Brokerage commissions (DWR) 1,679,928 1,972,567 2,958,010
Management fees 668,857 861,074 1,195,370
Transaction fees and costs 205,461 260,306 314,741
Administrative expenses 55,559 43,112 82,000
--------- --------- -----------
Total Expenses 2,609,805 3,137,059 4,550,121
--------- --------- -----------
NET INCOME (LOSS) 1,766,076 4,586,655 (16,267,965)
========= ========= ===========
NET INCOME (LOSS) ALLOCATION:
Limited Partners 1,713,263 4,504,824 (16,042,127)
General Partner 52,813 81,831 (225,838)
NET INCOME (LOSS) PER UNIT:
Limited Partners 73.76 114.30 (315.44)
General Partner 73.76 114.30 (315.44)
</TABLE>
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
UNITS OF
PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
----------- ----------- -------- -----------
$ $ $
<S> <C> <C> <C> <C>
Partners' Capital, December
31, 1993 56,825.391 55,968,381 714,162 56,682,543
Net Loss -- (16,042,127) (225,838) (16,267,965)
Redemptions (14,839.600) (11,778,068) -- (11,778,068)
----------- ----------- -------- -----------
Partners' Capital, December
31, 1994 41,985.791 28,148,186 488,324 28,636,510
Net Income -- 4,504,824 81,831 4,586,655
Redemptions (11,415.597) (8,878,649) -- (8,878,649)
----------- ----------- -------- -----------
Partners' Capital, December
31, 1995 30,570.194 23,774,361 570,155 24,344,516
Net Income -- 1,713,263 52,813 1,766,076
Redemptions (5,696.431) (4,467,587) -- (4,467,587)
----------- ----------- -------- -----------
Partners' Capital,
December 31, 1996 24,873.763 21,020,037 622,968 21,643,005
=========== =========== ======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE YEARS
ENDED
DECEMBER 31,
-----------------------------------
1996 1995 1994
---------- ---------- -----------
$ $ $
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) 1,766,076 4,586,655 (16,267,965)
Noncash item included in net income
(loss):
Net change in unrealized 158,241 238,638 1,184,566
(Increase) decrease in operating assets:
Net option premiums (40,917) 208,438 (38,838)
Due from DWR (175,137) 112,812 76,612
Interest receivable (DWR) 14,061 30,462 1,432
Increase (decrease) in operating
liabilities:
Accrued brokerage commissions (DWR) 31,392 22,754 (21,400)
Accrued management fees (6,061) (12,299) (69,685)
Accrued administrative expenses (1,105) 9,832 (93,281)
Accrued transaction fees
and costs 4,078 2,823 (1,102)
Incentive fees payable -- -- (118,802)
---------- ---------- -----------
Net cash provided by (used for)
operating activities 1,750,628 5,200,115 (15,348,463)
---------- ---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions
payable 88,545 (615,348) 436,519
Redemptions of units (4,467,587) (8,878,649) (11,778,068)
---------- ---------- -----------
Net cash used for financing activities (4,379,042) (9,493,997) (11,341,549)
---------- ---------- -----------
Net decrease in cash (2,628,414) (4,293,882) (26,690,012)
Balance at beginning of period 23,419,888 27,713,770 54,403,782
---------- ---------- -----------
Balance at end of period 20,791,474 23,419,888 27,713,770
========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION--Dean Witter Global Perspective Portfolio L.P. (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 DWR and Demeter are wholly-owned subsidiaries of
Dean Witter, Discover & Co. ("DWD"). Demeter has retained Abacus Asset
Management Inc. ("AAM"), ELM Financial, Inc. ("ELM"), EMC Capital Management,
Inc. ("EMC"), and Millburn Ridgefield Corporation ("Millburn") as the trading
advisors of the Partnership.
Demeter is required to maintain a 1% minimum interest in the equity of the
Partnership and income (losses) are shared by the General and Limited Partners
based upon their proportional ownership interests.
BASIS OF ACCOUNTING--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts in the financial statements.
REVENUE RECOGNITION--Commodity futures contracts, commodity options and forward
contracts on foreign currencies are open commitments until settlement date.
They are valued at market and the resulting unrealized gains and losses are
reflected in income. Monthly, DWR pays the Partnership interest income based
upon 80% of the average daily Net Assets for the month at a rate equal to the
average yield on 13-week U.S. Treasury Bills issued during such month. For
purposes of such interest payments, Net Assets do not include monies due the
Partnership on forward contracts and other commodity interests, but not
actually received.
NET INCOME (LOSS) PER UNIT--Net income (loss) per Unit is computed using the
weighted average number of units outstanding during the period.
EQUITY IN COMMODITY FUTURES TRADING ACCOUNTS--The Partnership's asset "Equity
in Commodity futures trading accounts" consists of cash on deposit at DWR to be
used as margin for trading and the net asset or
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
liability related to unrealized gains or losses on open contracts and the net
option premiums paid and/or received. The asset or liability related to the
unrealized gains or losses on forward contracts is presented as a net amount
because the Partnership has a master netting agreement with DWR.
BROKERAGE COMMISSIONS AND RELATED TRANSACTION FEES AND COSTS--The Partnership
accrues brokerage commissions on a half-turn basis at 80% of DWR's published
non-member rates. Transaction fees and costs are accrued on a half-turn basis.
Prior to September 1, 1996, brokerage commissions were capped at 3/4 of 1% per
month of the Net Assets allocated to each trading advisor as defined in the
Limited Partnership Agreement.
Effective September 1, 1996, brokerage commissions and transaction fees
chargeable to the Partnership have been capped at 13/20 of 1% per month of the
Partnership's month-end Net Assets as defined in the Limited Partnership
Agreement.
OPERATING EXPENSES--The Partnership bears all operating expenses related to its
trading activities, to a maximum of 1/4 of 1% annually of the Partnership's
average month-end Net Assets. These include filing fees, clerical,
administrative, auditing, accounting, mailing, printing, and other incidental
operating expenses as permitted by the Limited Partnership Agreement. In
addition, the Partnership incurs a monthly management fee and may incur an
incentive fee. Demeter bears all other operating expenses.
REDEMPTIONS--Limited Partners may redeem some or all of their Units at 100% of
the Net Asset Value per Unit as of the end of any month upon five business days
advance notice by redemption form to Demeter.
DISTRIBUTIONS--Distributions, other than on redemptions of Units, are made on a
pro-rata basis at the sole discretion of Demeter. No distributions have been
made to date.
INCOME TAXES--No provision for income taxes has been made in the accompanying
financial statements, as partners are individually responsible for reporting
income or loss based upon their respective share of the Partnership's revenues
and expenses for income tax purposes.
DISSOLUTION OF THE PARTNERSHIP--The Partnership will terminate on December 31,
2025 or at an earlier date if certain conditions set forth in the Limited
Partnership Agreement occur.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
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 as
described in Note 1. Under its Customer Agreement with DWR, the Partnership
pays DWR brokerage commissions as described in Note 1.
3. TRADING ADVISORS
Compensation to AAM, ELM, EMC and Millburn consists of a management fee and an
incentive fee as follows:
MANAGEMENT FEE--The Partnership pays a monthly management fee equal to 1/4 of
1% per month of the Partnership's adjusted Net Assets, as defined in the
Limited Partnership Agreement, as of the last day of each month.
INCENTIVE FEE--The Partnership will pay a quarterly incentive fee to each
trading advisor equal to 17.5% of the trading advisor's "Trading Profits", as
defined in the Limited Partnership Agreement, experienced by the Net Assets
allocated to such trading advisor as of the end of each calendar quarter. If a
trading advisor has experienced "Trading Losses" with respect to its allocated
Net Assets at the time of any supplemental closing, the trading advisor must
earn back such losses plus a pro rata amount related to the funds allocated to
the trading advisor at such supplemental closing before the trading advisor is
eligible for an incentive fee. Such incentive fee is accrued in each month in
which "Trading Profits" occur. In those months in which "Trading Profits" are
negative, previous accruals, if any, during the incentive period will be
reduced. In those instances in which a Limited Partner redeems an investment,
the incentive fee (if earned through a redemption date) is to be paid to such
advisor on those redemptions in the month of such redemptions.
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
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
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
December 31, 1996 and 1995, open contracts were:
<TABLE>
<CAPTION>
CONTRACT OR NOTIONAL AMOUNT
----------------------------
1996 1995
------------- --------------
$ $
<S> <C> <C>
EXCHANGE-TRADED CONTRACTS
Financial Futures:
Commitments to Purchase 21,821,000 141,476,000
Commitments to Sell 86,598,000 165,550,000
Commodity Futures:
Commitments to Purchase 4,784,000 16,278,000
Commitments to Sell 12,396,000 1,553,000
Foreign Futures:
Commitments to Purchase 89,863,000 82,927,000
Commitments to Sell 5,713,000 2,427,000
OFF-EXCHANGE-TRADED FORWARD
CURRENCY CONTRACTS
Commitments to Purchase 29,783,000 35,918,000
Commitments to Sell 36,562,000 42,656,000
</TABLE>
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 are reported as a component of "Equity
in Commodity futures trading accounts" on the Statements of Financial Condition
and totaled $1,076,373 and $1,234,614 at December 31, 1996 and 1995,
respectively.
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. Of the $1,234,614 net
unrealized gain on open contracts at December 31, 1995, $1,324,193 related to
exchange-traded futures contracts and $(89,579) related to off-exchange-traded
forward currency contracts.
Exchange-traded futures contracts held by the Partnership at December 31, 1996
and 1995 mature through June 1998 and December 1996, respectively. Off-
exchange-traded forward currency contractsheld by the Partnership at December
31, 1996 and1995 mature through January 1997 and January 1996, respectively.
The contract amounts in the above table represent the Partnership's extent of
involvement in the particular class of financial instrument, but
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
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.
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 option contracts including an amount equal to
the net unrealized gain on all open futures and option contracts which, funds
totaled $21,838,132 and $24,744,081 at December 31, 1996 and 1995,
respectively. With respect to the Partnership's off-exchange-traded forward
currency and option 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 and option 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 of such contracts, to perform.
For the years ended December 31, 1996 and 1995, the average fair value of
financial instruments held for trading purposes was as follows:
<TABLE>
<CAPTION>
1996
----------------------
ASSETS LIABILITIES
---------- -----------
$ $
EXCHANGE-TRADED CONTRACTS:
<S> <C> <C>
Financial Futures 50,976,000 52,598,000
Options on Financial Futures 9,545,000 --
Commodity Futures 7,374,000 6,609,013
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
<CAPTION>
1995
----------------------
ASSETS LIABILITIES
---------- -----------
$ $
EXCHANGE-TRADED CONTRACTS:
<S> <C> <C>
Financial Futures 71,464,000 9,382,000
Commodity Futures 7,622,000 5,285,000
Foreign Futures 35,765,000 32,750,000
OFF-EXCHANGE-TRADED FORWARD CURRENCY CONTRACTS 40,881,000 87,448,000
</TABLE>
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)
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, 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 interest 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 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.
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DEAN WITTER REYNOLDS INC.
Two World Trade Center
62nd Floor
New York, NY 10048
FIRST-CLASS MAIL
ZIP + 4 PRESORT
U.S. POSTAGE PAID
BROOKLYN, NY
PERMIT NO. 148
