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 quarterly period ended June 30, 1999 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. 0-19901
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
(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 L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1999
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition June 30, 1999
(Unaudited) and December 31, 1998.....................2
Statements of Operations for the Quarters Ended
June 30, 1999 and 1998 (Unaudited)....................3
Statements of Operations for the Six Months Ended
June 30, 1999 and 1998 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 1999 and 1998
(Unaudited)...........................................5
Statements of Cash Flows for the Six Months Ended
June 30, 1999 and 1998 (Unaudited)....................6
Notes to Financial Statements (Unaudited)..........7-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..12-21
Item 3. Quantitative and Qualitative Disclosures about
Market Risk .................................. 21-33
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.................................34
Item 6. Exhibits and Reports on Form 8-K..................34
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1999 1998
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 17,200,202 17,208,838
Net unrealized gain on open contracts 1,477,828 1,810,981
Total Trading Equity 18,678,030 19,019,819
Due from DWR 146,393 111,358
Interest receivable (DWR) 55,141 54,454
Total Assets 18,879,564 19,185,631
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 137,683 138,458
Accrued management fees 47,089 47,934
Accrued administrative expenses 25,895 11,996
Incentive fees payable 18,001 -
Total Liabilities 228,668 198,388
Partners' Capital
Limited Partners (16,291.399 and
17,430.131 Units, respectively) 18,406,891 18,754,867
General Partner (215.962 Units) 244,005 232,376
Total Partners' Capital 18,650,896 18,987,243
Total Liabilities and Partners' Capital 18,879,564 19,185,631
NET ASSET VALUE PER UNIT 1,129.85 1,076.00
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 862,362 (561,363)
Net change in unrealized 844,055 (345,763)
Total Trading Results 1,706,417 (907,126)
Interest Income (DWR) 160,572 187,915
Total Revenues 1,866,989 (719,211)
EXPENSES
Brokerage commissions (DWR) 319,985 311,720
Management fees 141,772 139,734
Transaction fees and costs 42,224 51,792
Incentive fees 18,001 -
Administrative expenses 11,785 11,616
Total Expenses 533,767 514,862
NET INCOME (LOSS) 1,333,222 (1,234,073)
NET INCOME (LOSS) ALLOCATION
Limited Partners 1,316,261 (1,192,439)
General Partner 16,961
(41,634)
NET INCOME (LOSS) PER UNIT
Limited Partners
78.54 (58.15)
General Partner
78.54 (58.15)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,956,650 (121,477)
Net change in unrealized (333,153) (608,710)
Total Trading Results 1,623,497 (730,187)
Interest Income (DWR) 318,812 395,570
Total Revenues 1,942,309 (334,617)
EXPENSES
Brokerage commissions (DWR) 637,169 653,052
Management fees 280,894 296,778
Transaction fees and costs 82,084 117,758
Administrative expenses 23,350 24,670
Incentive fees 18,001 -
Total Expenses 1,041,498 1,092,258
NET INCOME (LOSS) 900,811 (1,426,875)
NET INCOME (LOSS) ALLOCATION
Limited Partners
889,182 (1,378,745)
General Partner
11,629 (48,130)
NET INCOME (LOSS) PER UNIT
Limited Partners
53.85 (67.22)
General Partner
53.85 (67.22)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 1999 and 1998
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
Partners' Capital,
December 31, 1997 21,679.155 $20,276,293 $692,502
$20,968,795
Net Loss - (1,378,745) (48,130)
(1,426,875)
Redemptions (1,589.897) (1,461,416) -
(1,461,416)
Partners' Capital,
June 30, 1998 20,089.258 $17,436,132 $644,372
$18,080,504
Partners' Capital,
December 31, 1998 17,646.093 $18,754,867 $232,376
$18,987,243
Net Income - 889,182 11,629 900,811
Redemptions (1,138.732) (1,237,158) -
(1,237,158)
Partners' Capital,
June 30, 1999 16,507.361 $18,406,891 $244,005
$18,650,896
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1999 1998
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 900,811 (
1,426,875)
Noncash item included in net income (loss):
Net change in unrealized 333,153 608,710
(Increase) decrease in operating assets:
Due from DWR (35,035) (5,655)
Interest receivable (DWR) (687) 13,486
Net option premiums - (5,628)
Increase (decrease) in operating liabilities:
Accrued management fees (845) (7,045)
Accrued administrative expenses 13,899 15,335
Incentive fees payable 18,001
- -
Net cash provided by (used for) operating activities 1,229,297
(807,672)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable(775) 77,560
Redemptions of units (1,237,158)
(1,461,416)
Net cash used for financing activities (1,237,933)
(1,383,856)
Net decrease in cash (8,636)
(2,191,528)
Balance at beginning of period 17,208,838
19,685,194
Balance at end of period 17,200,202
17,493,666
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
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 L.P. (the "Partnership"). The financial
statements and condensed notes herein should be read in
conjunction with the Partnership's December 31, 1998 Annual
Report on Form 10-K.
1. Organization
Dean Witter Global Perspective Portfolio L.P. is a limited
partnership organized to engage primarily in the speculative
trading of futures and forward contracts, options on futures
contracts, physical commodities and other commodity interests
(collectively, "futures interests"). The general partner is
Demeter Management Corporation ("Demeter"). The non-clearing
commodity broker is Dean Witter Reynolds Inc. ("DWR") and an
unaffiliated clearing commodity broker, Carr Futures Inc.
("Carr"), provides clearing and execution services. Both Demeter
and DWR are wholly-owned subsidiaries of Morgan Stanley Dean
Witter & Co. ("MSDW"). The trading advisors for the Partnership
are ELM Financial, Inc., EMC Capital Management, Inc. and
Millburn Ridgefield Corporation (the "Trading Advisors").
<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 and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
Treasury bill rates. The Partnership pays brokerage commissions
to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts, options on
futures contracts, physical commodities and other commodity
interests. 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.
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities"
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
effective for fiscal years beginning after June 15, 1999. The
Partnership elected to adopt the provisions of SFAS No. 133
beginning with the fiscal year that ended December 31, 1998.
SFAS No. 133 supersedes SFAS No. 119 and No. 105, which required
the disclosure of average aggregate fair values and
contract/notional values, respectively, of derivative financial
instruments for an entity which carries its assets at fair value.
The application of SFAS No. 133 does not have a significant
effect on the Partnership's financial statements.
The net unrealized gain on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the Statements of Financial Condition and totaled $1,477,828 and
$1,810,981 at June 30, 1999 and December 31, 1998, respectively.
Of the $1,477,828 net unrealized gain on open contracts at June
30, 1999, $1,773,471 related to exchange-traded futures contracts
and $(295,643) related to off-exchange-traded forward currency
contracts.
Of the $1,810,981 net unrealized gain on open contracts at
December 31, 1998, $2,079,747 related to exchange-traded futures
contracts and $(268,766) related to off-exchange-traded forward
currency contracts.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Exchange-traded futures contracts held by the Partnership at June
30, 1999 and December 31, 1998 mature through March 2000 and
September 1999, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at June 30, 1999 and
December 31, 1998 mature through September 1999 and March 1999,
respectively.
The Partnership is subject to the credit risk associated with
counterparty non-performance. The credit risk associated with
the instruments in which the Partnership is involved is limited
to the amounts reflected in the Partnership's Statements of
Financial Condition. DWR and Carr act as the futures commission
merchants or the counterparties with respect to most of the
Partnership's assets. Exchange-traded futures and future-styled
options contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. Each of DWR and
Carr, as a futures commission merchant for all of the
Partnership's exchange-traded futures and futures-styled options
contracts, are required, pursuant to regulations of the Commodity
Futures Trading 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 futures-styled options contracts, including an amount equal
to the net unrealized gain on all open futures and futures-styled
options contracts,
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
which funds, in the aggregate, totaled $18,973,673 and
$19,288,585 at June 30, 1999 and December 31, 1998, 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 of such contracts, to perform. Carr's
parent, Credit Agricole Indosuez, has guaranteed to the
Partnership payment of the net liquidating value of the
transactions in the Partnership's account with Carr (including
foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - Assets of the Partnership are deposited with DWR as
non-clearing broker and Carr as clearing broker in separate
futures interest trading accounts. Such assets are held in either
non-interest bearing bank accounts 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 futures interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investment in futures interests may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits". Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price for a particular futures interest
has increased or decreased by an amount equal to the daily limit,
positions in such futures interest can neither be taken nor
liquidated unless traders are willing to effect trades at or
within the limit. Futures interests 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 futures interests and result in
restrictions on redemptions.
<PAGE>
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or from promptly liquidating unfavorable positions,
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. Future redemptions of Units
of Limited Partnership Interest ("Units") will affect the amount
of funds available for investment in futures interests in
subsequent periods. Since they are at the discretion of Limited
Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions of Units.
Results of Operations
For the Quarter and Six Months Ended June 30, 1999
For the quarter ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $1,866,989
and posted an increase in Net Asset Value per Unit. The most
significant gains were experienced in the global interest rate
futures markets from short positions in Japanese bond futures as
prices fell during quarter-end amid news of stronger-than-
expected economic growth in Japan. Short positions in European
bond futures were also profitable as prices in these markets
moved lower during June on a general negative tone regarding the
European common currency, a decline in U.S. Treasury bond prices
<PAGE>
and bearish sentiment pertaining to the overall health of the
European economy. Smaller gains were recorded in the energy
markets from long natural gas futures positions as prices climbed
during April on the release of a report that showed increasing
storage stock that was well-below market expectations. These
gains were partially offset by losses in the currency markets
from short Japanese yen positions as the yen's value temporarily
strengthened during mid-June versus the U.S. dollar on reports of
stronger-than-expected gross domestic product data from Japan.
Newly established long Japanese yen positions produced losses
later in June as the yen's value weakened versus the U.S. dollar
after the Bank of Japan intervened to prevent a rise in the yen
in an effort to assist economic recovery in Japan. Additional
losses were incurred in the agricultural markets from short
positions in soybean meal and corn futures as soybean meal prices
surged during April as a result of investment fund short-
covering, reports by the USDA lowering supply estimates and
unfavorable weather in South America, while corn prices edged
higher during May on an increase in U.S. exports and forecasts
for extended heat and dryness in most Midwestern states. In the
soft commodities markets, long coffee futures positions resulted
in losses as prices declined due to warm weather in Brazil and
ample warehouse supplies during June. Total expenses for the
three months ended June 30, 1999 were $533,767, resulting in net
income of $1,333,222. The value of a Unit increased from
$1,051.31 at March 31, 1999 to $1,129.85 at June 30, 1999.
<PAGE>
For the six months ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $1,942,309
and posted an increase in Net Asset Value per Unit. The most
significant gains were recorded from short positions in European
bond futures, particularly British and German interest rate
futures, as prices in these markets moved lower during June amid
a general negative tone over the European common currency, a
decline in U.S. Treasury bond prices and bearish sentiment
pertaining to the overall health of the European economy.
Additional gains were experienced during February from short U.S.
interest rate futures positions as domestic bond prices fell
significantly due to strong U.S. economic data and on warnings of
inflation in the U.S. by Federal Reserve Chairman Alan Greenspan.
Short positions in U.S. interest rate futures were also
profitable during May as domestic bond prices dropped sharply due
to a rise in the Consumer Price Index and Alan Greenspan's
comments regarding the unlikely possibility of continued U.S.
economic expansion without significant inflation. In the energy
markets, gains were recorded during March and April from long
crude oil futures positions as oil prices moved considerably
higher on news that both OPEC and non-OPEC countries had reached
an agreement to cut total output by approximately two million
barrels a day beginning April 1st. Smaller gains were
experienced in the currency markets from short positions in the
euro and Swiss franc as the value of these European currencies
declined versus the U.S. dollar due to the strength of the U.S.
economy, concerns pertaining to the economic health of Europe and
Japan, and growing uncertainty about the military action in
<PAGE>
Yugoslavia. A portion of these gains was offset by losses in the
global stock index futures markets from trading S&P 500 Index
futures during January and February as domestic equity prices
moved in a choppy pattern on concerns that strong economic growth
in the U.S. would lead to an interest rate hike by the Federal
Reserve. Additional losses were recorded in the soft commodities
markets from long coffee futures positions during January as
prices declined amid fears that economic turmoil in Brazil would
lead them to flood the market with increased exports. During
June, long coffee futures positions were also unfavorable as
priced declined due to warm weather in Brazil and ample warehouse
supplies. In the metals markets, losses were incurred during May
from long positions in zinc and copper futures as the prices of
most base metals fell significantly amid large supply, low demand
and the unlikely possibility of a production cut in the near
future. Smaller losses were experienced in the agricultural
markets from short corn futures positions as priced moved higher
on an increase in U.S. exports and forecasts for extended heat
and dryness in most Midwestern states. Total expenses for the
six months ended June 30, 1999 were $1,041,498, resulting in net
income of $900,811. The value of a Unit increased from $1,076.00
at December 31, 1998 to $1,129.85 at June 30, 1999.
For the Quarter and Six Months Ended June 30, 1998
For the quarter ended June 30, 1998, the Partnership recorded
total trading losses net of interest income of $719,211 and
posted a decrease in Net Asset Value per Unit. The most
significant losses were recorded in the financial futures markets
<PAGE>
during April and June. In April, losses were recorded from long
global bond futures positions as Australian, Japanese and
European interest rate futures prices reversed lower after
trending higher previously. This trend higher in global interest
rate futures prices re-emerged during May. However, additional
losses were recorded during June as this upward move reversed
sharply lower during mid-month in reaction to the Federal
Reserve's intervention to halt the downward slide of the Japanese
yen. A small portion of these losses was offset by gains
recorded from long European stock index futures positions.
Smaller losses were recorded in the currency markets from short
positions in the German mark and Swiss franc during April and
June. Smaller losses were recorded in the agricultural market
from long soybean oil positions as prices reversed lower during
May after trending higher in March and April. Smaller losses
were recorded in the energy and metals markets during the second
quarter. A portion of the overall losses for the quarter was
offset by gains recorded in soft commodities during June from
long cotton futures positions as prices moved higher. Additional
gains were recorded from short coffee futures positions as coffee
prices moved lower. Total expenses for the three months ended
June 30, 1998 were $514,862, resulting in a net loss of
$1,234,073. The value of a Unit decreased from $958.16 at March
31, 1998 to $900.01 at June 30, 1998.
For the six months ended June 30, 1998, the Partnership recorded
total trading losses net of interest income of $334,617 and
<PAGE>
posted a decrease in Net Asset Value per Unit. The most
significant losses were recorded from long global bond futures
positions as Australian, Japanese and U.S. interest rate futures
prices reversed lower after trending higher previously. This
trend higher in global interest rate futures prices reemerged
during May. However, additional losses were recorded during June
as this upward move reversed sharply lower during mid-month in
reaction to the Federal Reserve's intervention to halt the
downward slide of the Japanese yen. A small portion of these
losses was offset by gains recorded from long European stock
index futures positions. Additional 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. Currency losses were also recorded during February and
June from trading the Japanese yen and in March from trading the
German mark. 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 sharply lower during February after
trending higher previously. In the agricultural markets, losses
were recorded from trading soybean oil futures in May and corn
futures in June. Smaller losses were recorded in the energy
markets. A portion of the Partnership's overall losses was
offset by gains in soft commodities from short sugar and coffee
futures as prices in these markets trended lower. Total expenses
for the six months ended June 30, 1998 were $1,092,258, resulting
<PAGE>
in a net loss of $1,426,875. The value of a Unit decreased from
$967.23 at December 31, 1997 to $900.01 at June 30, 1998.
Year 2000 Problem. Commodity pools, like financial and business
organizations and individuals around the world, depend on the
smooth functioning of computer systems. Many computer systems in
use today cannot recognize the computer code for the year 2000,
but revert to 1900 or some other date. This is commonly known as
the "Year 2000 Problem". The Partnership could be adversely
affected if computer systems used by it or any third party with
whom it has a material relationship do not properly process and
calculate date-related information and data concerning dates on
or after January 1, 2000. Such a failure could adversely affect
the handling or determination of futures trades and prices and
other services.
MSDW began its planning for the Year 2000 Problem in 1995, and
currently has several hundred employees working on the matter.
It has developed its own Year 2000 compliance plan to deal with
the problem and had the plan approved by the company's executive
management, Board of Directors and Information Technology
Department. Demeter is coordinating with MSDW to address the Year
2000 Problem with respect to Demeter's computer systems that
affect the Partnership. This includes hardware and software
upgrades, systems consulting and computer maintenance.
<PAGE>
Beyond the challenge facing internal computer systems, the
systems failure of any of the third parties with whom the
Partnership has a material relationship - the futures exchanges
and clearing organizations through which it trades, Carr, or the
Trading Advisors - could result in a material financial risk to
the Partnership. All U.S. futures exchanges are subject to
monitoring by the CFTC of their Year 2000 preparedness and the
major foreign futures exchanges are also expected to be subject
to market-wide testing of their Year 2000 compliance during 1999.
Demeter intends to monitor the progress of Carr and the Trading
Advisors throughout 1999 in their Year 2000 compliance and, where
applicable, to test its external interface with Carr and the
Trading Advisors.
A worst case scenario would be one in which trading of contracts
on behalf of the Partnership becomes impossible as a result of
the Year 2000 problem encountered by any third parties. A less
catastrophic but more likely scenario would be one in which
trading opportunities diminish as a result of technical problems
resulting in illiquidity and fewer opportunities to make
profitable trades. MSDW has begun developing various "contingency
plans" in the event that the systems of such third parties fail.
Demeter intends to consult closely with MSDW in implementing
those plans. Despite the best efforts of both Demeter and MSDW,
however, it is possible that these steps will not be sufficient
to avoid any adverse impact to the Partnership.
<PAGE>
Risks Associated With the Euro. On January 1, 1999, eleven
countries in the European Union established fixed conversion
rates on their existing sovereign currencies and converted to a
common single currency (the "euro"). During a three-year
transition period, the sovereign currencies will continue to
exist but only as a fixed denomination of the euro. Conversion
to the euro prevents the Trading Advisors from trading in certain
currencies and thereby limits their ability to take advantage of
potential market opportunities that might otherwise have existed
had separate currencies been available to trade. This could
adversely affect the performance results of the Partnership.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures interests. The market sensitive
instruments held by the Partnership are acquired solely for
speculative trading purposes and, as a result, all or
substantially all of the Partnership's assets are subject to the
risk of trading loss. Unlike an operating company, the risk of
market sensitive instruments is integral, not incidental, to the
Partnership's primary business activities.
The futures interests traded by the Partnership involve varying
degrees of related market risk. Such market risk is often
dependent upon changes in the level or volatility of interest
rates, exchange rates, and/or market values of financial
<PAGE>
instruments and commodities. Fluctuations in related market risk
based upon the aforementioned factors result in frequent changes
in the fair value of the Partnership's open positions, and,
consequently, in its earnings and cash flow.
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification effects among
the Partnership's existing open positions, the volatility present
within the market(s), and the liquidity of the market(s). At
varying times, each of these factors may act to exacerbate or
mute the market risk associated with the Partnership.
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt at quantifying the
Partnership's market risk must be qualified by the inherent
uncertainty of its speculative trading, which may cause future
losses and volatility (i.e. "risk of ruin") far in excess of the
Partnership's experience to date and/or any reasonable
expectation premised upon historical changes in the fair value of
its market sensitive instruments.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the
Partnership's market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All
<PAGE>
quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.
The Partnership accounts for open positions on the basis of mark-
to-market accounting principles. As such, any loss in the fair
value of the Partnership's open positions is directly reflected
in
the Partnership's earnings, whether realized or unrealized, and
the Partnership's cash flow, as profits and losses on open
positions of exchange-traded futures interests are settled daily
through variation margin.
The Partnership's risk exposure in the various market sectors
traded by the Trading Advisors is estimated below in terms of
Value at Risk ("VaR"). The VaR model employed by the Partnership
incorporates numerous variables that could impact the fair value
of the Partnership's trading portfolio. The Partnership
estimates VaR using a model based on historical simulation with a
confidence level of 99%. Historical simulation involves
constructing a distribution of hypothetical daily changes in
trading portfolio value. The VaR model generally takes into
account linear exposures to price and interest rate risk. Market
risks that are incorporated in the VaR model include equity and
commodity prices, interest rates, foreign exchange rates, as well
as correlation that exists among these variables. The
hypothetical changes in portfolio value are based on daily
<PAGE>
observed percentage changes in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. In the case of the Partnership's VaR, the historical
observation period is approximately four years. The Partnership's
one-day 99% VaR corresponds to the negative change in portfolio
value that, based on observed market risk factor moves, would
have been exceeded once in 100 trading days.
VaR models such as the Partnership's are continually evolving as
trading portfolios become more diverse and modeling techniques
and systems capabilities improve. It must also be noted that the
VaR model is used to quantify market risk for historic reporting
purposes only and is not utilized by either Demeter or the
Trading Advisors in their daily risk management activities.
The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by market category as of June 30, 1999. As of June 30, 1999, the
Partnership's total capitalization was approximately $19 million.
Primary Market June 30, 1999
Risk Category Value at Risk
Interest Rate (2.35)%
Currency (2.06)
Equity (1.09)
Commodity (1.15)
Aggregate Value at Risk (4.10)%
<PAGE>
Aggregate value at risk represents the aggregate VaR of the
Partnership's open positions and not the sum of the VaR of the
individual categories listed above. Aggregate VaR will be lower
as it takes into account correlation among different positions
and categories.
The table above represents the VaR of the Partnership's open
positions at June 30, 1999 only and is not necessarily
representative of either the historic or future risk of an
investment in the Partnership. As the Partnership's sole
business is the speculative trading of primarily futures
interests, the composition of its portfolio of open positions can
change significantly over any given time period or even within a
single trading day. Such changes in open positions could
materially impact market risk as measured by VaR either
positively or negatively.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR as a percentage of total
Net Assets for the four quarterly reporting periods from July 1,
1998 through June 30, 1999.
Primary Market Risk Category High Low Average
Interest Rate (2.35)% (0.91)% (1.75)%
Currency (2.06) (0.95) (1.46)
Equity (1.09) (0.34) (0.76)
Commodity (1.15) (0.60) (0.90)
Aggregate Value at Risk (4.10)% (2.15)% (2.71)%
<PAGE>
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements, as such margin requirements generally range between
2% and 15% of contract face value. Additionally, due to the use
of leverage, the face value of the market sector instruments held
by the Partnership is typically many times the total
capitalization of the Partnership. The financial magnitude of
the Partnership's open positions thus creates a "risk of ruin"
not typically found in other investment vehicles. Due to the
relative size of the positions held, certain market conditions
may cause the Partnership to incur losses greatly in excess of
VaR within a short period of time. The foregoing VaR tables, as
well as the past performance of the Partnership, gives no
indication of such "risk of ruin". In addition, VaR risk measures
should be interpreted in light of the methodology's limitations,
which include the following: past changes in market risk factors
will not always yield accurate predictions of the distributions
and correlations of future market movements; changes in portfolio
value in response to market movements may differ from the
responses implicit in a VaR model; published VaR results reflect
past trading positions while future risk depends on future
positions; VaR using a one-day time horizon does not fully
capture the market risk of positions that cannot be liquidated or
hedged within one day; and the historical market risk factor data
used for VaR estimation may provide only limited insight into
losses that could be incurred under certain unusual market
movements.
<PAGE>
The foregoing VaR tables present the results of the Partnership's
VaR for each of the Partnership's market risk exposures and on an
aggregate basis at June 30, 1999 and for the end of the four
quarterly reporting periods from July 1, 1998 through June 30,
1999. Since VaR is based on historical data, VaR should not be
viewed as predictive of the Partnership's future financial
performance or its ability to manage and monitor risk and there
can be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated or that
such losses will not occur more than 1 in 100 trading days.
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. However, such balances, as well
as any market risk they may represent, are immaterial. The
Partnership also maintains a substantial portion (approximately
78%) of its available assets in cash at DWR. A decline in short-
term interest rates will result in a decline in the Partnership's
cash management income. This cash flow risk is not considered
material.
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and the
potential losses caused by such movements, taking into account
the leverage, optionality and multiplier features of the
Partnership's market sensitive instruments.
<PAGE>
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (i) those disclosures that are
statements of historical fact and (ii) the descriptions of how
the Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership's primary market risk
exposures as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership's
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expro-
priations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical
price relationships, an influx of new market participants,
increased regulation and many other factors could result in
material losses as well as in material changes to the risk
exposures and the risk management strategies of the Partnership.
Investors must be prepared to lose all or substantially all of
their investment in the Partnership.
The following were the primary trading risk exposures of the
Partnership as of June 30, 1999, by market sector. It may be
<PAGE>
anticipated however, that these market exposures will vary
materially over time.
Interest Rate. The primary trading risk market exposure in
the Partnership is in the interest rate sector. Exposure at June
30, 1999 was spread across the U.S., European, Japanese, German
and British interest rate sectors. Interest rate movements
directly affect the price of the sovereign bond futures positions
held by the Partnership and indirectly affect the value of its
stock index and currency positions. Interest rate movements in
one country as well as relative interest rate movements between
countries materially impact the Partnership's profitability. The
Partnership's primary interest rate exposure is generally to
interest rate fluctuations in the United States and the other G-7
countries. However, the Partnership also takes futures positions
in the government debt of smaller nations - e.g. Australia and
Spain. Demeter anticipates that G-7 and Australian interest
rates will remain the primary interest rate exposure of the
Partnership for the foreseeable future. The changes in interest
rates, which have the most effect on the Partnership, are changes
in long-term, as opposed to short-term, rates. Most of the
speculative futures positions held by the Partnership are in
medium-to-long term instruments. Consequently, even a material
change in short-term rates would have little effect on the
Partnership, were the medium-to-long term rates to remain steady.
Currency. The second largest trading risk market exposure
this quarter is in the currency complex. The Partnership's
currency exposure is to exchange rate fluctuations, primarily
<PAGE>
fluctuations which disrupt the historical pricing relationships
between different currencies and currency pairs. Interest rate
changes as well as political and general economic conditions
influence these fluctuations. The Partnership trades in a large
number of currencies, including cross-rates - i.e., positions
between two currencies other than the U.S. dollar. For the
second quarter of 1999, the Partnership's major exposures were in
the euro currency crosses and outright U.S. dollar positions.
(Outright positions consist of the U.S. dollar vs. other
currencies. These other currencies include the major and minor
currencies). Demeter does not anticipate that the risk profile
of the Partnership's currency sector will change significantly in
the future. The currency trading VaR figure includes foreign
margin amounts converted into U.S. dollars with an incremental
adjustment to reflect the exchange rate risk inherent to the
dollar-based Partnership in expressing VaR in a functional
currency other than dollars.
Equity. The primary equity exposure is to equity price
risk in the G-7 countries. The stock index futures traded by the
Partnership are by law limited to futures on broadly based
indices. As of June 30, 1999, the Partnership's primary
exposures were in the Nikkei (Japan), Hang Seng (China) and DAX
(German) stock indices. The Partnership is primarily exposed to
the risk of adverse price trends or static markets in the U.S.,
European and Japanese indices. (Static markets would not cause
major market changes but would make it difficult for the
<PAGE>
Partnership to avoid being "whipsawed" into numerous small
losses).
Commodity.
Soft Commodities and Agriculturals. On June 30, 1999, the
Partnership had a reasonable amount of exposure in the markets
that comprise these sectors. Most of the exposure, however, was
in the soybean, cotton and sugar markets. Supply and demand
inequalities, severe weather disruption and market expectations
affect price movements in these markets.
Energy. On June 30, 1999, the Partnership's energy exposure
was shared by futures contracts in the oil and natural gas
markets. Price movements in these markets result from political
developments in the Middle East, weather patterns, and other
economic fundamentals. As oil prices have broken out of low
price ranges achieved in 1998, it is possible that volatility
will increase as well. Significant profits and losses have been
and are expected to continue to be experienced in this market.
Natural gas, also a primary energy market exposure, has exhibited
more volatility than the oil markets on an intra-day and daily
basis and is expected to continue in this choppy pattern.
Metals. The Partnership's primary metals market exposure
is to fluctuations in the price of gold and silver. Although
certain Trading Advisors will, from time to time, trade base
metals such as aluminum, copper, zinc and nickel, the principal
market exposures of the Partnership have consistently been in
precious metals, gold and silver. The Trading Advisors' gold
trading has been increasingly limited due to the long-lasting and
<PAGE> mainly non-volatile decline in
the price of gold over the last 10-15 years. However, silver
prices have remained volatile over this period, and the Trading
Advisors have from time to time taken substantial positions as
they have perceived market opportunities to develop. Demeter
anticipates that gold and silver will remain the primary metals
market exposure for the Partnership.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of June 30, 1999:
Foreign Currency Balances. The Partnership's primary foreign
currency balances are in euros, Japanese yen, Swiss francs and
British pounds. The Partnership controls the non-trading risk of
these balances by regularly converting these balances back into
dollars upon liquidation of the respective position.
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The means by which the Partnership and the Trading Advisors,
severally, attempt to manage the risk of the Partnership's open
positions are essentially the same in all market categories
traded. Demeter attempts to manage the Partnership's market
exposure by (i) diversifying the Partnership's assets among
different Trading Advisors each of whose strategies focus on
different market sectors and trading approaches, and (ii),
monitoring the performance of the Trading Advisors on a daily
<PAGE>
basis. In addition, the Trading Advisors establish diversi-
fication guidelines, often set in terms of the maximum margin to
be committed to positions in any one market sector or market
sensitive instrument. One should be aware that certain Trading
Advisors treat their risk control policies as strict rules,
whereas others treat such policies as general guidelines.
Demeter monitors and controls the risk of the Partnership's non-
trading instruments, cash, which is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The following supplements Legal Proceedings previously disclosed
in the Partnership's 1998 Form 10-K:
With respect to the plaintiff's consolidated aciton in
California, on July 1, 1999, the Superior Court of the State of
California, ruling from the bench, denied the plaintiffs' motion
to have their lawsuit certified as a class action, stating, among
other things, that plaintiffs' lawsuit did not present common
questions of fact.
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 L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
August 13, 1999 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
Director and 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 statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 17,200,202
<SECURITIES> 0
<RECEIVABLES> 201,534<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,879,564<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 18,879,564<F3>
<SALES> 0
<TOTAL-REVENUES> 1,942,309<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,041,498
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 900,811
<INCOME-TAX> 0
<INCOME-CONTINUING> 900,811
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 900,811
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include due from DWR of $146,393 and interest
receivable of $55,141.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $1,477,828.
<F3>Liabilities include redemptions payable of $137,683, accrued
management fees of $47,089, accrued administrative expenses of $25,895
and incentive fees payable of $18,001.
<F4>Total revenue includes realized trading revenue of $1,956,650, net
change in unrealized of $(333,153) and interest income of $318,812.
</FN>
</TABLE>
