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 September 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
September 30, 1999
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1999
(Unaudited) and December 31, 1998.....................2
Statements of Operations for the Quarters Ended
September 30, 1999 and 1998 (Unaudited)...............3
Statements of Operations for the Nine Months Ended
September 30, 1999 and 1998 (Unaudited)...............4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 1999 and 1998
(Unaudited)...........................................5
Statements of Cash Flows for the Nine Months Ended
September 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>
Sepember 30, December 31,
1999 1998
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 16,042,353 17,208,838
Net unrealized gain on open contracts 1,171,816 1,810,981
Total Trading Equity 17,214,169 19,019,819
Due from DWR 90,069 111,358
Interest receivable (DWR) 54,375 54,454
Total Assets 17,358,613 19,185,631
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 131,061 138,458
Accrued management fee 43,304 47,934
Accrued administrative expenses 36,874 11,996
Total Liabilities 211,239 198,388
Partners' Capital
Limited Partners (15,737.600 and
17,430.131 Units, respectively) 16,915,251 18,754,867
General Partner (215.962 Units) 232,123 232,376
Total Partners' Capital 17,147,374 18,987,243
Total Liabilities and Partners' Capital 17,358,613 19,18
5,631
NET ASSET VALUE PER UNIT 1,074.83 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 September 30,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (282,501) 1,606,810
Net change in unrealized (306,012) 2,637,121
Total Trading Results (588,513) 4,243,931
Interest Income (DWR) 167,125 180,333
Total Revenues (421,388) 4,424,264
EXPENSES
Brokerage commissions (DWR) 304,523 339,839
Management fee 132,068 148,693
Transaction fees and costs 37,997 42,777
Administrative expenses 10,978 12,360
Incentive fees (4,244) -
Total Expenses 481,322 543,669
NET INCOME (LOSS) (902,710) 3,880,595
NET INCOME (LOSS) ALLOCATION
Limited Partners (890,828) 3,739,471
General Partner (11,882)
141,124
NET INCOME (LOSS) PER UNIT
Limited Partners
(55.02) 197.11
General Partner
(55.02) 197.11
<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 Nine Months Ended September 30,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,674,149 1,485,333
Net change in unrealized (639,165) 2,028,411
Total Trading Results 1,034,984 3,513,744
Interest Income (DWR) 485,937 575,903
Total Revenues 1,520,921 4,089,647
EXPENSES
Brokerage commissions (DWR) 941,692 992,891
Management fee 412,962 445,471
Transaction fees and costs 120,081 160,535
Administrative expenses 34,328 37,030
Incentive fees 13,757 -
Total Expenses 1,522,820 1,635,927
NET INCOME (LOSS) (1,899) 2,453,720
NET INCOME (LOSS) ALLOCATION
Limited Partners
(1,646) 2,360,726
General Partner
(253) 92,994
NET INCOME (LOSS) PER UNIT
Limited Partners
(1.17) 129.89
General Partner
(1.17) 129.89
<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 Nine Months Ended September 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 Income - 2,360,726 92,994
2,453,720
Redemptions (2,801.111) (2,162,520) (548,560)
(2,711,080)
Partners' Capital,
September 30, 1998 18,878.044 $20,474,499 $236,936
$20,711,435
Partners' Capital,
December 31, 1998 17,646.093 $18,754,867 $232,376
$18,987,243
Net Loss - (1,646) (253) (1,899)
Redemptions (1,692.531) (1,837,970) -
(1,837,970)
Partners' Capital,
September 30, 1999 15,953.562 $16,915,251 $232,123
$17,147,374
<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 Nine Months Ended September 30,
1999 1998
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (1,899) 2
,453,720
Noncash item included in net income (loss):
Net change in unrealized 639,165 (
2,028,411)
Decrease in operating assets:
Due from DWR 21,289 163,110
Interest receivable (DWR) 79 12,280
Net option premiums - 53,391
Increase (decrease) in operating liabilities:
Accrued management fee (4,630) 692
Accrued administrative expenses 24,878
27,694
Net cash provided by operating activities 678,882
682,476
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable(7,397) 533,500
Redemptions of units (1,837,970)
(2,711,080)
Net cash used for financing activities (1,845,367)
(2,177,580)
Net decrease in cash (1,166,485)
(1,495,104)
Balance at beginning of period 17,208,838
19,685,194
Balance at end of period 16,042,353
18,190,090
<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 $1,171,816 and
$1,810,981 at September 30, 1999 and December 31, 1998,
respectively.
Of the $1,171,816 net unrealized gain on open contracts at
September 30, 1999, $1,387,226 related to exchange-traded futures
contracts and $(215,410) 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
September 30, 1999 and December 31, 1998 mature through June 2000
and September 1999, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 1999
and December 31, 1998 mature through December 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 $17,429,579 and
$19,288,585 at September 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 Nine Months Ended September 30, 1999
For the quarter ended September 30, 1999, the Partnership
recorded total trading losses net of interest income of $421,388
and posted a decrease in Net Asset Value per Unit. The most
significant losses were experienced in the currency markets
during July from short positions in the European common currency
and the Swiss franc as the value of these currencies strengthened
versus the U.S. dollar due to a better-than-expected German
business sentiment survey and a record U.S. traded deficit.
Additional currency losses were experienced during September from
long euro and Swiss franc positions as the value of these
currencies
<PAGE>
declined sharply versus the U.S. dollar on September 10 after an
intervention by the Bank of Japan temporarily strengthened the
U.S. dollar. Additional losses were experienced in the global
stock index futures markets from long Hang Seng Index futures
positions as Hong Kong stocks moved lower during July on rising
China-Taiwan tensions and a fall in China's gross domestic
product and during September on fears of an interest rate hike in
the U.S. Smaller losses were recorded in the agricultural markets
during September from long wheat futures positions as prices
declined due to rain in the southwestern Plains and continued
weak export demand. These losses were partially offset by gains
recorded in the metals markets from short gold futures positions
as prices reached 20-year lows during July amid continuing
murmurs that central banks were offloading or seeking to offload
the precious metal, following the Bank of England's example.
During September, long gold futures positions were profitable as
gold prices surged higher as major European central banks said
they would cap their sales of the metal, thus tightening supplies
in the face of a growth in demand. Additional gains were
recorded in the energy markets during September from long futures
positions in crude oil and its refined products, unleaded gas and
heating oil. Prices in these markets increased due to a sharp
contraction in U.S. supplies, Hurricane Floyd and confirmation
from OPEC ministers that they will hold their global production
cutbacks until April of next year. Smaller gains were
experienced in the soft commodities markets during July from
short coffee futures positions as prices fell as fears of
impending frost damage to
<PAGE>
Brazilian plantations evaporated and on predictions that Brazil
would reap a record harvest next year. Total expenses for the
three months ended September 30, 1999 were $481,322, resulting in
a net loss of $902,710. The value of a Unit decreased from
$1,129.85 at June 30, 1999 to $1,074.83 at September 30, 1999.
For the nine months ended September 30, 1999, the Partnership
recorded total trading revenues including interest income of
$1,520,921 and, after expenses, posted a decrease in Net Asset
Value per Unit. The most significant net losses were recorded in
the global stock index futures markets during June from short
positions in European stock index futures, particularly German,
as prices in these markets were boosted higher by gains on Wall
Street and in Japan. Long Hang Seng Index futures positions also
resulted in losses as Hong Kong stocks moved lower during July on
rising China-Taiwan tensions and a fall in China's gross domestic
product and during September on fears of an interest rate hike in
the U.S. Additional losses were recorded in the agricultural
markets from short corn futures positions as prices moved higher
during March on an increase in U.S. exports and forecasts for
extended heat and dryness in most Midwestern states. Smaller
losses were experienced 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 unfavorable as prices declined due to warm
weather in in Brazil and ample warehouse supplies. A portion of
<PAGE>
the Partnership's overall losses was offset by gains recorded in
the energy markets from long crude oil futures positions during
March, April and September as oil prices increased on news during
the first half of the year that both OPEC and non-OPEC countries
had reached an agreement to cut total output. During the third
quarter, prices rose due to a sharp contraction in U.S. supplies,
Hurricane Floyd and confirmation during the third quarter that
OPEC ministers will hold their global production cutbacks until
April of next year. Additional gains were experienced in the
global interest rate futures markets from short positions in
European bond futures, particularly British 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. In the
metals markets, gains were recorded from short gold futures
positions as prices reached 20-year lows during July amid
continuing murmurs that central banks were offloading or seeking
to offload the precious metal, following the Bank of England's
example. During September, long gold futures positions were
profitable as gold prices surged higher as major European central
banks said they would cap their sales of the metal. Total
expenses for the nine months ended September 30, 1999 were
$1,522,820, resulting in a net loss of $1,899. The value of a
Unit decreased from $1,076.00 at December 31, 1998 to $1,074.83
at September 30, 1999.
<PAGE>
For the Quarter and Nine Months Ended September 30, 1998
For the quarter ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$4,424,264 and posted an increase in Net Asset Value per Unit.
The Partnership recorded gains primarily in the financial futures
markets from long global interest rate futures positions. The
most significant of these gains were recorded during August and
September from long U.S., German and Japanese bond futures
positions as prices moved significantly higher as investors
sought the perceived safety of fixed income investments in lieu
of the volatility plaguing most global financial markets. In the
agricultural markets, additional gains were recorded during July
and August from short corn futures positions as prices moved
lower on near perfect growing conditions and disappointing export
demand. Smaller gains were recorded in the energy markets from
short positions in crude oil futures during July and August as
oil prices declined on speculation regarding OPEC's proposed
production cuts. A portion of the Partnership's overall gains
for the quarter was offset by losses recorded in the metals
markets from long copper and aluminum futures positions as base
metal prices moved in a choppy pattern throughout the quarter
amid uncertain demand from Asia. In soft commodities, losses
were recorded from trading coffee futures during the quarter as
prices in this market moved in a trendless manner. Losses were
also experienced in this market complex from long cotton futures
as prices moved lower during July and August. Smaller losses were
recorded in the currency markets from transactions involving the
Japanese yen as the value of the yen moved in a choppy pattern
versus most world currencies during
<PAGE>
August and September. Total expenses for the three months ended
September 30, 1998 were $543,669, resulting in net income of
$3,880,595. The value of a Unit increased from 900.01 at June
30, 1998 to $1,097.12 at September 30, 1998.
For the nine months ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$4,089,647 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded from long global bond
futures positions as German, Japanese and U.S. interest rate
futures prices moved higher during August and September after
experiencing trendless price movements during a majority of the
first half of the year. This trend higher in global interest
rate futures prices was a direct result of increased volatility
in the global financial markets which caused a flight of investor
capital to the perceived safety of government debt. Smaller
gains were recorded in this market complex from long German stock
index futures positions. A portion of the Partnership's overall
gains was offset by losses experienced in the currency markets
from transactions involving the British pound as the value of the
pound versus the U.S. dollar moved in a choppy pattern during the
first three quarters. Smaller currency losses were experienced
during the first half of the year from trading the Swiss franc
and German mark. Additional Partnership losses recorded in soft
commodities during July and August from long positions in cotton
futures more than offset profits recorded during the first half
of the year from short sugar futures positions. In the metals
<PAGE>
markets, losses were recorded from transactions involving copper
futures positions as prices moved in a trendless manner
throughout the first nine months of the year. Total expenses for
the nine months ended September 30, 1998 were $1,635,927,
resulting in net income of $2,453,720. The value of a Unit
increased from 967.23 at December 31, 1997 to $1,097.12 at
September 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
<PAGE>
2000 Problem with respect to Demeter's computer systems that
affect the Partnership. This includes hardware and software
upgrades, systems consulting and computer maintenance.
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
<PAGE>
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.
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.
<PAGE>
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
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
<PAGE>
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
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
<PAGE>
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
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 September 30, 1999. As of September 30,
1999, the Partnership's total capitalization was approximately
$17 million.
<PAGE>
Primary Market September 30, 1999
Risk Category Value at Risk
Currency (1.76)%
Interest Rate (1.27)
Equity (0.62)
Commodity (1.24)
Aggregate Value at Risk (2.32)%
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 September 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 October
1, 1998 through September 30, 1999.
<PAGE>
Primary Market Risk Category High Low Average
Currency (2.06)% (0.99)% (1.66)%
Interest Rate (2.35) (0.91) (1.53)
Equity (1.09) (0.62) (0.83)
Commodity (1.24) (0.78) (1.06)
Aggregate Value at Risk (4.10)% (2.15)% (2.71)%
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
<PAGE>
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.
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 September 30, 1999 and for the end of the four
quarterly reporting periods from October 1, 1998 through
September 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
82%) of its available assets in cash at DWR. A decline in short-
term interest rates will result in a decline in the Partnership's
<PAGE>
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.
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
<PAGE>
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 September 30, 1999, by market sector. It may
be anticipated however, that these market exposures will vary
materially over time.
Currency. The primary market exposure in the Partnership is
in the currency sector. The Partnership's currency exposure is
to exchange rate fluctuations, primarily 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 third 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
<PAGE>
Partnership in expressing VaR in a functional currency other than
dollars.
Interest Rate. The second largest market exposure this
quarter is in the interest rate complex. Exposure 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. 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.
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
<PAGE>
indices. As of September 30, 1999, the Partnership's primary
exposures were in the Nikkei (Japan), Hang Seng (China) and All
Ordinaries (Australia) 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 Partnership to avoid being "whipsawed" into
numerous small losses).
Commodity.
Energy. On September 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 increased about
100% this year, and, given that the agreement by OPEC to cut
production is approaching expiration in March 2000, it is
possible that volatility will remain on the high end.
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
<PAGE>
metals, gold and silver. A significant amount of exposure was
evident in the gold market as the price of gold increased
dramatically following bullish comments by the European Central
Bank. 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.
Soft Commodities and Agriculturals. On September 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 coffee, corn and sugar markets. Supply and
demand inequalities, severe weather disruption and market
expectations affect price movements in these markets.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of September 30, 1999:
Foreign Currency Balances. The Partnership's primary
foreign currency balances are in Japanese yen, Mexican pesos and
euros. The Partnership controls the non-trading risk of these
balances by regularly converting these balances back into dollars
upon liquidation of the respective position.
<PAGE>
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
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 instrument, 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:
In the New York action, the motion to dismiss the amended
complaint with prejudice has been fully briefed and argued and
the Dean Witter Parties are awaiting the New York Supreme Court's
decision.
In the California action, on September 24, 1999, the Superior
Court in the State of California entered an order dismissing the
consolidated amended complaint without prejudice on consent.
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)
November 12, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 16,042,353
<SECURITIES> 0
<RECEIVABLES> 144,444<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 17,358,613<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 17,358,613<F3>
<SALES> 0
<TOTAL-REVENUES> 1,520,921<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,522,820
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,899)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,899)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,899)
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include due from DWR of $90,069 and interest
receivable of $54,375.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $1,171,816.
<F3>Liabilities include redemptions payable of $131,061, accrued
management fee of $43,304, and accrued administrative expenses of
$36,874.
<F4>Total revenue includes realized trading revenue of $1,674,149, net
change in unrealized of $(639,165) and interest income of $485,937.
</FN>
</TABLE>
