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, 1998 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 Corporation
Two World Trade Center, 62 Fl. New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
_________________________________________________________________
_
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 1998
(Unaudited) and December 31, 1997.....................2
Statements of Operations for the Quarters Ended
March 31, 1998 and 1997 (Unaudited)...................3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 1998 and 1997
(Unaudited)...........................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1998 and 1997 (Unaudited)...................5
Notes to Financial Statements (Unaudited)..........6-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..12-15
Part II. OTHER INFORMATION
Item 1 Legal Proceedings..............................16-17
Item 6. Exhibits and Reports on Form 8-K..................18
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 19,244,137 19,685,194
Net unrealized gain on open contracts 941,751 1,204,698
Net option premiums 99,460 53,391
Total Trading Equity 20,285,348 20,943,283
Due from DWR 220,935 204,727
Interest receivable (DWR) 70,007 73,624
Total Assets 20,576,290 21,221,634
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 266,656 199,785
Accrued management fees 51,408 53,054
Accrued administrative expenses 13,054 -
Total Liabilities 331,118 252,839
Partners' Capital
Limited Partners (20,413.261 and
20,963.193 Units, respectively) 19,559,166 20,276,293
General Partner (715.962 Units) 686,006 692,502
Total Partners' Capital 20,245,172 20,968,795
Total Liabilities and Partners' Capital 20,576,290 21,22
1,634
NET ASSET VALUE PER UNIT 958.16 967.23
<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 March 31,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 439,886 2,699,303
Net change in unrealized (262,947) 414,364
Total Trading Results 176,939 3,113,667
Interest Income (DWR) 207,655 229,300
Total Revenues 384,594 3,342,967
EXPENSES
Brokerage commissions (DWR) 341,332 375,610
Management fees 157,044 177,817
Transaction fees and costs 65,966 54,186
Administrative expenses 13,054 14,781
Total Expenses 577,396 622,394
NET INCOME (LOSS) (192,802) 2,720,573
NET INCOME (LOSS) ALLOCATION
Limited Partners (186,306) 2,641,695
General Partner (6,496) 78,878
NET INCOME (LOSS) PER UNIT
Limited Partners
(9.07) 110.17
General Partner
(9.07) 110.17
<FN>
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, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
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
Partners' Capital
December 31, 1997 21,679.155 $20,276,293 $692,502
$20,968,795
Net Loss - (186,306) (6,496) (192,802)
Redemptions (549.932) (530,821) -
(530,821)
Partners' Capital
March 31, 1998 21,129.223 $19,559,166 $686,006
$20,245,172
<FN>
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,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (192,802) 2
,720,573
Noncash item included in net income (loss):
Net change in unrealized 262,947 (
414,364)
(Increase)decrease in operating assets:
Net option premiums (46,069) 41,033
Due from DWR (16,208) 82,856
Interest receivable (DWR) 3,617 (10,197)
Increase (decrease) in operating liabilities:
Accrued management fees (1,646) 4,047
Accrued administrative expenses 13,054 9,123
Accrued brokerage commissions (DWR)- 7,466
Accrued transaction fees and costs -
(765)
Net cash provided by operating activities 22,893 2
,439,772
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable66,871 (77,508)
Redemptions of units (530,821) (
1,028,334)
Net cash used for financing activities (463,950) (
1,105,842)
Net increase (decrease) in cash (441,057) 1
,333,930
Balance at beginning of period 19,685,194 2
0,791,474
Balance at end of period 19,244,137 2
2,125,404
<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 of Dean Witter Global
Perspective Portfolio Fund (the "Partnership"). The financial
statements and condensed notes, herein should be read in
conjunction with the Partnership's December 31, 1997 Annual
Report on Form 10K.
1. Organization
Dean Witter Global Perspective Portfolio Fund is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts, commodity options contracts and
forward contracts on foreign currencies (collectively, "Futures
Interests"). The general partner for the Partnership is Demeter
Management Corporation ("Demeter"). The non-clearing commodity
broker is Dean Witter Reynolds Inc. ("DWR"), with an unaffiliated
broker, Carr Futures, Inc. ("Carr"), providing clearing and
execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter and Co. ("MSDW").
Demeter has retained ELM Financial, Inc., EMC Capital Management,
Inc., and Millburn Ridgefield Corporation as the trading advisors
of the Partnership.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr 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 and currencies.
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, 1998 and December 31, 1997, open
contracts were:
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Contract or Notional Amount
March 31, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 10,611,000 62,649,000
Commitments to Sell 87,761,000 13,651,000
Commodity Futures:
Commitments to Purchase 8,436,000 2,824,000
Commitments to Sell 8,582,000 15,049,000
Foreign Futures:
Commitments to Purchase 73,477,000 113,061,000
Commitments to Sell 77,659,000 29,346,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 13,141,000 25,431,000
Commitments to Sell 28,375,000 37,596,000
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.
The unrealized gain on open contracts is reported as a component
of "Equity in Commodity futures trading accounts" on the
Statements of Financial Condition and totaled $941,751 and
$1,204,698 at March 31, 1998 and December 31, 1997, respectively.
Of the $941,751 net unrealized gain on open contracts at March
31, 1998, $605,655 was related to exchange-traded futures
contracts and $336,096 related to off-exchange-traded forward
currency contracts.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $1,204,698 net unrealized gain on open contracts at
December 31, 1997, $1,259,832 related to exchange-traded futures
contracts and $(55,134) related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1998 and December 31, 1997 mature through December
1998. Off-exchange-traded forward currency contracts held by the
Partnership at March 31, 1998 and December 31, 1997 mature
through April 1998 and January 1998, 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
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 either DWR or Carr
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 and Carr, as the futures commission merchants for all of the
Partnership's exchange-traded futures and options contracts, are
required pursuant to regulations of the Commodity Futures Trading
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Commission ("CFTC") to segregate from their own assets and for
the
sole benefit of their commodity customers, all funds held by them
with respect to exchange-traded futures and options contracts
including an amount equal to the net unrealized gain on all open
futures and options contracts, which funds totaled $19,849,792
and $20,945,026 at March 31, 1998 and December 31, 1997,
respectively. With respect to the Partnership's off-exchange-
traded forward currency contracts, there are no daily settlements
of variations in value nor is there any requirement that an
amount equal to the net unrealized gain 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
Carr, the sole counterparty on all such contracts, to perform.
Carr's parent, Credit Agricole Indosuez, has guaranteed Carr's
obligations to the Partnership.
For the quarter ended March 31, 1998 and the year ended December
31, 1997, the average fair value of financial instruments held
for trading purposes was as follows:
March 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 38,273,000 38,145,000
Options on Financial Futures 2,883,000 -
Commodity Futures 4,808,000 11,385,000
Foreign Futures 98,172,000 46,339,000
Options on Foreign Futures 5,135,000 -
Off-Exchange-Traded Forward
Currency Contracts 42,996,000 51,555,000
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
December 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 40,539,000 32,632,000
Options on Financial Futures 2,903,000 -
Commodity Futures 11,044,000 9,567,000
Foreign Futures 53,622,000 47,919,000
Options on Foreign Futures 299,000 -
Off-Exchange-Traded
Forward Currency Contracts 44,844,000 48,047,000
<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 Carr, the
commodity brokers, and are used by the Partnership as margin to
engage in commodity futures, forward contracts and other
commodity interest trading. DWR and Carr hold such assets in
either designated depositories or in securities approved by the
CFTC for investment of customer funds. The Partnership's assets
held by DWR and Carr 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 limita-tion on daily price moves in trading forward
contracts on foreign
<PAGE>
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 of Limited Partnership Interest in the future will affect
the amount of funds available for investments 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
For the Quarter Ended March 31, 1998
For the quarter ended March 31, 1998, the Partnership's total
trading revenues including interest income were $384,594. During
the first quarter, the Partnership recorded a loss in Net Asset
Value per Unit. The most significant losses were recorded in the
currency markets during January due primarily to a reversal lower
in the previous upward trend in the value of the U.S. dollar
relative to the German mark, Japanese yen and the Australian
dollar. Additional currency losses were recorded during February
as the stability of the Japanese economy remained questionable,
thus causing the value of the yen to move in a short-term
<PAGE>
volatile pattern. A portion of these losses was offset by gains
in March from short positions in the Japanese yen, Swiss franc
and German mark relative to the U.S. dollar and other world
currencies. In the metals markets, losses were recorded from
short copper futures positions as prices moved higher during
January and March, and from long silver futures positions as
silver prices reversed lower during February after trending
higher previously. Smaller losses were recorded in the energy and
soft commodities market from short positions in crude oil and
cotton futures as prices in these markets moved higher after
trending lower previously. A portion of the Partnership's
overall losses was offset by gains in financial futures from long
positions in European bond and U.S. stock index futures during
January and March, respectively. Total expenses for the period
were $577,396, resulting in a net loss of $192,802. The value of
an individual Unit in the Partnership decreased from $967.23 at
December 31, 1997 to $958.16 at March 31, 1998.
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. 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
<PAGE>
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
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.
<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. ("DWFCM"), MSDW (all such
parties referred to hereafter as the "Dean Witter Parties"),
certain other limited partnership commodity pools of which
Demeter is the general partner, and certain trading advisors to
those pools. On June 16, 1997, the plaintiffs in the above
actions filed a consolidated amended complaint, alleging, among
other things, that the defendants committed fraud, deceit,
negligent misrepresentation, various violations of the California
Corporations Code, intentional and negligent breach of fiduciary
duty, fraudulent and unfair business practices, unjust
enrichment, and conversion in the sale and operation of the
various limited partnership commodity 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. A
consolidated and amended complaint in the action pending in the
Supreme Court of the State of New York was filed on August 13,
<PAGE>
1997, alleging that the defendants committed fraud, breach of
fiduciary duty, and negligent misrepresentation in the sale and
operation of the various limited partnership commodity pools. On
December 16, 1997, upon motion of the plaintiffs, the action
pending in the Superior Court of the State of Delaware was
voluntarily dismissed without prejudice. 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 11, 1998 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 reference to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 19,244,137
<SECURITIES> 0
<RECEIVABLES> 290,942<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 20,576,290<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,576,290<F3>
<SALES> 0
<TOTAL-REVENUES> 384,594<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 577,396
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (192,802)
<INCOME-TAX> 0
<INCOME-CONTINUING> (192,802)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (192,802)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include receivable from DWR of $220,935 and interest
receivable of $70,007.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $941,751, and net option premiums of $99,460.
<F3>Liabilities include redemptions payable of $266,656, accrued management
fees of $51,408, and accrued administrative expenses of $13,054.
<F4>Total revenue includes realized trading revenue of $439,886, net
change in unrealized of $(262,947) and interest income of $207,655.
</FN>
</TABLE>
