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, 2000 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___________
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<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 2000
(Unaudited) and December 31, 1999.....................2
Statements of Operations for the Quarters Ended
September 30, 2000 and 1999 (Unaudited)...............3
Statements of Operations for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)...............4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 2000 and 1999
(Unaudited)...........................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)...............6
Notes to Financial Statements (Unaudited)..........7-12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..13-23
Item 3. Quantitative and Qualitative Disclosures about
Market Risk .................................. 23-36
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.................................37
Item 6. Exhibits and Reports on Form 8-K...............37-38
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
2000 1999 $
$
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 10,063,570 14,098,056
Net unrealized gain on open contracts (MS & Co.)
193,618 -
Net unrealized loss on open contracts (MSIL)
(57,368) -
Net unrealized gain (loss) on open contracts (Carr)
(187) 987,025
Total net unrealized gain on open contracts 136,063
987,025
Total Trading Equity 10,199,633 15,085,081
Due from DWR 50,600 65,610
Interest receivable (DWR) 43,143 53,212
Total Assets 10,293,376 15,203,903
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 406,798 310,659
Accrued management fees 25,452 37,986
Accrued administrative expenses 11,661 9,491
Total Liabilities 443,911 358,136
Partners' Capital
Limited Partners (11,851.018 and
15,086.096 Units, respectively) 9,673,190 14,636,245
General Partner (215.962 Units) 176,275 209,522
Total Partners' Capital 9,849,465 14,845,767
Total Liabilities and Partners' Capital 10,293,376 15,20
3,903
NET ASSET VALUE PER UNIT 816.23 970.18
<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,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading loss:
Realized (512,195) (282,501)
Net change in unrealized (1,326) (306,012)
Total Trading Results (513,521) (588,513)
Interest Income (DWR) 133,445
167,125
Total Revenues (380,076) (421,388)
EXPENSES
Brokerage commissions (DWR) 185,834 304,523
Management fees 79,508 132,068
Transaction fees and costs 19,131 37,997
Administrative expenses 6,651 10,978
Incentive fees
- (4,244)
Total Expenses 291,124 481,322
NET LOSS (671,200) (902,710)
NET LOSS ALLOCATION
Limited Partners (659,892) (890,828)
General Partner (11,308) (11,882)
NET LOSS PER UNIT
Limited Partners
(52.36) (55.02)
General
(52.36) (55.02)
<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,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (650,045) 1,674,149
Net change in unrealized (850,962)
(639,165)
Total Trading Results (1,501,007) 1,034,984
Interest Income (DWR) 440,458 485,937
Total Revenues (1,060,549) 1,520,921
EXPENSES
Brokerage commissions (DWR) 651,776 941,692
Management fees 280,221 412,962
Transaction fees and costs 74,122 120,081
Administrative expenses 20,923 34,328
Incentive fees
- 13,757
Total Expenses 1,027,042 1,522,820
NET LOSS (2,087,591) (1,899)
NET LOSS ALLOCATION
Limited Partners (2,054,344) (1,646)
General Partner (33,247) (253)
NET LOSS PER UNIT
Limited Partners (153.95) (1.17)
General Partner
(153.95) (1.17)
<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, 2000 and 1999
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
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
Partners' Capital,
December 31, 1999 15,302.058 $14,636,245 $209,522
$14,845,767
Net Loss
- (2,054,344) (33,247)
(2,087,591)
Redemptions (3,235.078) (2,908,711)
- (2,908,711)
Partners' Capital,
September 30, 2000 12,066.980 $9,673,190 $176,275
$9,849,465
<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,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss
(2,087,591) (1,899)
Noncash item included in net loss:
Net change in unrealized 850,962 639,165
Decrease in operating assets:
Due from DWR 15,010 21,289
Interest receivable (DWR) 10,069 79
Increase (decrease) in operating liabilities:
Accrued management fees
(12,534) (4,630)
Accrued administrative expenses 2,170
24,878
Net cash provided by (used for) operating activities (1
,221,914) 678,882
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable96,139 (7,397)
Redemptions of Units
(2,908,711) (1,837,970)
Net cash used for financing activities (2,812,572)
(1,845,367)
Net decrease in cash (4,034,486) (
1,166,485)
Balance at beginning of period 14,098,056
17,208,838
Balance at end of period 10,063,570
16,042,353
<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 unaudited financial statements contained herein 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, 1999 Annual Report on Form 10-K.
1. Organization
Dean Witter Global Perspective Portfolio L.P. is a Delaware
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"). Morgan Stanley & Co., Inc. ("MS & Co.")
and Morgan Stanley & Co. International Limited ("MSIL") provide
clearing and execution services. Demeter, DWR, MS & Co. and MSIL
are wholly-owned subsidiaries of Morgan Stanley Dean Witter & Co.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The trading advisors for the Partnership are EMC Capital
Management, Inc. ("EMC") and Millburn Ridgefield Corporation
("Millburn") (collectively the "Trading Advisors").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR, MS & Co., and MSIL
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.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No.
133, "Accounting for Derivative Instruments and Hedging
Activities" effective for fiscal years beginning after June 15,
2000, as amended by SFAS No. 137. The Partnership adopted the
provisions of SFAS No. 133 beginning with the fiscal year ended
December 31, 1998. SFAS No. 133 superceded SFAS Nos. 119 and 105,
which required the disclosure of average aggregate fair values
and contract/notional values, respectively, of derivative
financial instruments for an entity that carries its assets at
fair value. SFAS No. 133 was further amended by SFAS No. 138,
which clarifies issues surrounding interest rate risk, foreign
currency denominations, normal purchases and sales and net
hedging. The application of SFAS No. 133, as amended by SFAS No.
137, did not have a significant effect on the Partnership's
financial statements, nor will the application of the provisions
of SFAS No. 138 have a significant effect on the Partnership's
financial statements.
SFAS No. 133 defines a derivative as a financial instrument or
other contract that has all three of the following
characteristics:
1) One or more underlying notional amounts or payment
provisions;
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2) Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in market
factors;
3) Terms require or permit net settlement.
Generally derivatives include futures, forwards, swaps or option
contracts, or other financial instruments with similar
characteristics such as caps, floors and collars.
The net unrealized gains on open contracts are reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $136,063 and
$987,025 at September 30, 2000 and December 31, 1999,
respectively.
Of the $136,063 net unrealized gain on open contracts at
September 30, 2000, $132,570 related to exchange-traded futures
contracts and $3,493 related to off-exchange-traded forward
currency contracts.
Of the $987,025 net unrealized gain on open contracts at December
31, 1999, $957,815 related to exchange-traded futures contracts
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
and $29,210 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 2000 and December 31, 1999 mature through March
2001 and June 2000, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 2000
and December 31, 1999 mature through December 2000 and March
2000, respectively.
The Partnership has 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.
The Partnership also has credit risk because DWR, MS & Co., and
MSIL 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, MS & Co., and MSIL as a
futures commission merchant for the Partnership's exchange-traded
futures and futures-styled options contracts, are required,
pursuant to
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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, which funds, in the
aggregate, totaled $10,196,140 and $15,055,871 at September 30,
2000 and December 31, 1999, 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 MS & Co., the sole
counterparty on all of such contracts, to perform. The
Partnership has a netting agreement with MS & Co. This
agreement, which seeks to reduce both the Partnership's and MS &
Co.'s exposure on off-exchange-traded forward currency contracts,
should materially decrease the Partnership's credit risk in the
event of MS & Co.'s bankruptcy or insolvency.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership deposits its assets with DWR as non-
clearing broker and MS & Co. and MSIL as clearing brokers, in
separate futures trading accounts established for each Trading
Advisor, which assets are used as margin to engage in trading.
The assets are held in either non-interest-bearing bank accounts
or in securities and instruments permitted by the CFTC for
investment of customer segregated or secured funds. The
Partnership's assets held by the commodity brokers may be used as
margin solely for the Partnership's trading. Since the
Partnership's sole purpose is to trade in futures, forwards, and
options, it is expected that the Partnership will continue to own
such liquid assets for margin purposes.
The Partnership's investment in futures, forwards, and options
may, from time to time, be illiquid. Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as "daily price fluctuations limits" or "daily
limits". Trades may not be executed at prices beyond the daily
limit. If the price for a particular futures or options contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be
taken nor liquidated unless traders are willing to effect trades
at or within the limit. Futures prices have occasionally moved
the
<PAGE>
daily limit for several consecutive days with little or no
trading. These market conditions could prevent the Partnership
from promptly liquidating its futures or options contracts and
result in restrictions on redemptions.
There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.
The Partnership has never had illiquidity affect a material
portion of its assets.
Capital Resources. The Partnership does not have, or expect to
have, any capital assets. Redemptions of additional units of
limited partnership interest ("Units") in the future will affect
the amount of funds available for investment in futures interests
in subsequent periods. It is not possible to estimate the amount
and therefore, the impact of future redemptions of Units.
<PAGE>
Results of Operations
General. The Partnership's results depend on its Trading
Advisors and the ability of the Trading Advisors' trading
programs to take advantage of price movements or other profit
opportunities in the futures, forwards, and options markets. The
following presents a summary of the Partnership's operations for
the quarters and nine months ended September 30, 2000 and 1999,
respectively, and a general discussion of its trading activities
during each period. It is important to note, however, that the
Trading Advisors trade in various markets at different times and
that prior activity in a particular market does not mean that
such market will be actively traded by the Trading Advisors or
will be profitable in the future. Consequently, the results of
operations of the Partnership are difficult to discuss other than
in the context of its Trading Advisors' trading activities on
behalf of the Partnership as a whole and how the Partnership has
performed in the past.
For the Quarter and Nine Months Ended September 30, 2000
For the quarter ended September 30, 2000, the Partnership
recorded total trading losses net of interest income of $380,076
and posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 2.9% were recorded in the
global interest rate futures markets primarily from short German
interest rate futures positions as prices were boosted during
July by an upward move in U.S. bond prices. Short Japanese
<PAGE>
government bond futures contributed to losses in this complex as
prices surged and long-term interest rates dropped during
September as investors sought refuge from falls in U.S. and
Japanese stock prices. Additional losses of approximately 1.6%
were recorded in the global stock index futures markets primarily
during August from long Australian stock index futures positions
as prices declined amid disappointing earnings. Losses were also
experienced from positions in European stock index futures as
prices moved in a trendless pattern throughout a majority of
July. In metals, losses of approximately 1.4% resulted primarily
from short silver futures positions during August as prices rose
late in the month due to the U.S. dollar's weakness versus the
Japanese yen. Trading zinc and aluminum futures throughout the
quarter also resulted in losses for the metals complex. In
currencies, losses of approximately 1.2% were incurred from long
Japanese yen positions during July as the yen's value declined
versus the U.S. dollar on skepticism regarding Japan's economic
soundness. These losses in the currency sector were partially
offset by gains recorded from short New Zealand dollar positions
during August and September as its value weakened versus the U.S.
dollar alongside the euro and worse-than-expected economic
figures. Losses of approximately 0.8% were recorded in the soft
commodities markets primarily from short cotton futures positions
during July as prices jumped higher amid dryness and heat in
Texas. Also in this sector, losses were recorded during July
from short-term whipsawing in coffee futures prices. Losses in
<PAGE>
soft commodities were partially offset by gains recorded from
long sugar futures positions during July as prices increased on
forecasts that the world surplus will shrink with smaller crops
in 2000-2001. Smaller losses of approximately 0.6% were recorded
in the energy markets primarily from long crude oil futures
positions as prices dropped during July due to growing conviction
that Saudi Arabia would boost production and during September
after President Clinton ordered the release of 30 million barrels
of the U.S.'s emergency Strategic Petroleum Reserve. A portion
of overall Partnership losses was offset by gains of
approximately 0.2% recorded in the agricultural markets primarily
from long soybean meal futures positions during August as prices
reversed higher due to hot and dry weather in the growing regions
of the U.S. Total expenses for the three months ended September
30, 2000 were $291,124, resulting in a net loss of $671,200. The
value of a Unit decreased from $868.59 at June 30, 2000 to
$816.23 at September 30, 2000.
For the nine months ended September 30, 2000 the Partnership
recorded total trading losses net of interest income of
$1,060,549 and posted a decrease in Net Asset Value per Unit.
The most significant losses of approximately 8.6% were recorded
in the global interest rate futures markets primarily from short
Japanese government bond futures as prices surged during
September as investors sought refuge from falls in U.S. and
Japanese stock prices. Short German interest rate futures
<PAGE>
positions also recorded losses as prices were boosted during July
by the upward move in U.S. bond prices. Long U.S. interest rate
futures positions posted losses during April as prices declined
amid fears of higher interest rates and inflation. Newly
established short U.S. interest rate futures positions
contributed to these losses during May as prices moved higher as
investors shed stock holdings for the safe haven of bonds.
Additional losses of approximately 6.0% were recorded in
currencies primarily from short Japanese yen positions as the
yen's value strengthened versus the U.S. dollar and major
European currencies during March on reports of yen repatriation
by institutions ahead of the Japanese fiscal year end on March 31
and during June on the perception that interest rates in the U.S.
may have topped out. Long Japanese yen positions incurred losses
during July as the yen's value declined versus the U.S. dollar on
skepticism regarding Japan's economic soundness. In the global
stock index futures markets, losses of approximately 5.3% were
recorded primarily from trading Hang Seng Index futures
throughout the first half of the year. In metals, losses of
approximately 3.1% resulted primarily from short silver futures
positions as prices surged during May on a jump in gold prices
and a slip in the U.S. dollar and during August due to the U.S.
dollar's weakness versus the Japanese yen. Smaller losses of
approximately 1.3% were recorded in the agricultural markets from
long wheat futures positions during February as prices declined
on insufficient demand and heavy rain in the U.S. production
area. A portion of
<PAGE>
overall Partnership losses were offset by gains of approximately
6.6% recorded in energies primarily from long natural gas futures
positions as prices moved to four year highs during May amid
supply woes. Long futures positions in crude oil and its refined
products also contributed to profits as prices increased during
January on growing speculation that OPEC would extend production
cuts beyond the deadline of March 2000. Additional gains of
approximately 0.4% were recorded in soft commodities primarily
from long sugar futures positions as prices trended to 22-month
highs during June due to strong demand and declining production
from Brazil. Short sugar futures positions also resulted in
gains during the first quarter as prices dropped during January
amid sustained fears of global supply surplus. Total expenses
for the nine months ended September 30, 2000 were $1,027,042,
resulting in a net loss of $2,087,591. The value of a Unit
decreased from $970.18 at December 31, 1999 to $816.23 at
September 30, 2000.
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 of approximately 6.2% were recorded in the
global interest rate futures markets primarily from short
positions in Japanese government bond futures as prices increased
during July and September due to the strength in the Japanese yen
and expectations that monetary easing in that country will
<PAGE>
eventually come. Losses were also recorded from trading U.S.
interest rate futures during August and September as domestic
bond prices moved in a short-term volatile pattern amid
inflationary concerns and questions regarding the future
direction of U.S. interest rates. Additional losses of
approximately 3.9% were experienced in the global stock index
futures markets primarily 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 of approximately 1.2% were recorded in
the agricultural markets primarily 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 of approximately 2.4%
recorded in the metals markets primarily 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 of approximately 1.9% were recorded in the
energy markets primarily during September from long futures
<PAGE>
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 of
approximately 0.6% were experienced in the soft commodities
markets primarily during July from short coffee futures positions
as prices fell as fears of impending frost damage to 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 of approximately
6.7% were recorded in the global stock index futures markets
primarily 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.
<PAGE>
Additional losses of approximately 1.8% were recorded in the
agricultural markets primarily 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 of approximately 1.0% were
experienced in the soft commodities markets primarily 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 Brazil and ample warehouse supplies. A portion of the
Partnership's overall losses was offset by gains of approximately
2.7% recorded in the energy markets primarily 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 of approximately 1.1% were experienced in the global
interest rate futures markets primarily 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 euro, a decline in U.S. Treasury
bond prices and bearish sentiment pertaining to the overall
<PAGE>
health of the European economy. In the metals markets, gains of
approximately 1.1% were recorded primarily 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.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool involved in the speculative
trading of futures interests. The market-sensitive instruments
held by the Partnership are acquired for speculative trading
purposes only and, as a result, all or substantially all of the
Partnership's assets are at risk of trading loss. Unlike an
operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.
<PAGE>
The futures interests traded by the Partnership involve varying
degrees of market risk. Market risk is often dependent upon
changes in the level or volatility of interest rates, exchange
rates, and prices of financial instruments and commodities.
Fluctuations in market risk based upon these 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 among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
exceed the Partnership's experiences to date or any reasonable
expectations based upon historical changes in market value.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the Partner-
<PAGE>
ship'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 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 using mark-to-market
accounting principles. Any loss in the market value of the
Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and its
cash flow. Profits and losses on open positions of exchange-
traded futures interests are settled daily through variation
margin.
The Partnership's risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio. The Partnership estimates VaR using a model
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
<PAGE>
interest rate risk. Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the Partnership's
VaR is approximately four years. The one-day 99% confidence
level of the Partnership's VaR corresponds to the negative change
in portfolio value that, based on observed market risk factors,
would have been exceeded once in 100 trading days.
VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically 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 primary market risk category as of September 30, 2000 and
1999.
<PAGE>
As of September 30, 2000 and 1999, the Partnership's total
capitalization was approximately $10 million and $17 million,
respectively.
Primary Market September 30, 2000 September 30, 1999
Risk Category Value at Risk Value at Risk
Currency (1.39)% (1.76)%
Interest Rate (1.13) (1.27)
Equity (1.12) (0.62)
Commodity (1.12) (1.24)
Aggregate Value at Risk (2.62)% (2.32)%
Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual Market 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, 2000 and 1999 only and is not
necessarily representative of either the historic or future risk
of an investment in the Partnership. Because the Partnership's
only business is the speculative trading of futures interests,
the composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.
<PAGE>
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, 1999 through September 30, 2000.
Primary Market Risk Category High Low Average
Currency (1.58)% (1.08)% (1.29)%
Interest Rate (1.71) (1.06) (1.38)
Equity (1.12) (0.64) (0.84)
Commodity (1.29) (0.60) (0.93)
Aggregate Value at Risk (2.62)% (1.89)% (2.31)%
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. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership. The value of the
Partnership's open positions thus creates a "risk of ruin" not
typically found in other investments. The relative size of the
positions held may cause the Partnership to incur losses greatly
in excess of VaR within a short period of time, given the effects
of the leverage employed and market volatility. The VaR tables
above, as well as the past
<PAGE>
performance of the Partnership, give no indication of such "risk
of ruin". In addition, VaR risk measures should be viewed in
light of the methodology's limitations, which include the
following:
past changes in market risk factors will not always result
in accurate predictions of the distributions and correlations of
future market movements;
changes in portfolio value in response to market movements
may differ from those of the VaR model;
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.
The VaR tables above 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, 2000 and for the end of the four
quarterly reporting periods from October 1, 1999 through
September 30, 2000. 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 or monitor risk.
There can
<PAGE>
be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated above 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. These balances and any market
risk they may represent are immaterial. At September 30, 2000
the Partnership's cash balance at DWR was approximately 89% of
its total Net Asset Value. 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 any
associated 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 (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
<PAGE>
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 September 30, 2000, 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 at
September 30, 2000 was in the currency sector. The Partnership's
currency exposure was to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships
<PAGE>
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. At September
30, 2000, the Partnership's major exposures were in euro currency
crosses and outright U.S. dollar positions. Outright positions
consist of the U.S. dollar vs. other currencies. These other
currencies include 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.
Interest Rate. The second largest market exposure at September
30, 2000 was in the global interest rate complex. Exposure was
primarily spread across the U.S., European and Japanese 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
<PAGE>
primary interest rate exposure is generally to interest rate
fluctuations in the United States and the other G-7 countries.
The G-7 countries consist of France, U.S., Britain, Germany,
Japan, Italy and Canada. 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 significant 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
indices. As of September 30, 2000, the Partnership's primary
exposures were in the S&P 500 (U.S.), TOPIX (Japan) and Hang Seng
(China) 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
Energy. At September 30, 2000, the Partnership's energy exposure
was shared primarily by futures contracts in the crude oil and
natural gas markets. Price movements in these markets result
from political developments in the Middle East, weather patterns,
and other economic fundamentals. It is possible that volatility
will remain high. Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market. Natural gas has exhibited volatility
in prices resulting from weather patterns and supply and demand
factors and may continue in this choppy pattern.
Metals. The Partnership's primary metals market exposure is to
fluctuations in the price of gold and silver. Although the
Trading Advisors will from time to time trade base metals such as
copper, aluminum, nickel and zinc, the principal market exposures
of the Partnership have consistently been in precious metals,
gold and silver. Exposure was evident in the gold market as gold
prices continued to be volatile during the quarter. Silver
prices have remained volatile over this period, and the Trading
Advisors have from time to time taken positions as they have
perceived market opportunities to develop.
<PAGE>
Soft Commodities and Agriculturals. At September 30, 2000, the
Partnership had exposure in the markets that comprise these
sectors. Most of the exposure, however, was in the coffee,
soybeans, soybean oil and soybean meal 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, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances at September 30, 2000 were in Hong Kong
dollars. 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 Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership's assets among different Trading Advisors each of
whose strategies focus on different market sectors and trading
approaches, and monitoring the performance of the Trading
<PAGE>
Advisors daily. In addition, the Trading Advisors establish
diversification 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. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Please refer to Legal Proceedings previously disclosed in the
Partnership's Form 10-Q(s) for the quarters ended March 31, 2000
and June 30, 2000 and Form 10-K for the year ended December 31,
1999.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
3.01 Limited Partnership Agreement of the Partnership, dated as
of November 7, 1991 is incorporated by reference to Exhibit
3.01 and Exhibit 3.02 of the Partnership's Registration
Statement on Form S-1.
10.01 Management Agreements among the Partnership, Demeter and
A.O. Management, Inc., Chang Crowell and Millburn each
dated as of December 31, 1991 is incorporated by reference
by Exhibit 10.02 of the Partnership's Registration
Statement on Form S-1.
10. 02 Management
Agreement among the Partnership, Demeter Management
Corporation and ELM Financial Incorporated dated as of May
1, 1994 is incorporated by reference to Exhibit 10.03 of
the Partnership's Annual Report on Form 10-K for the
fiscal year ended December 31, 1994.
10. 03 Management
Agreement among the Partnership, Demeter Manage-
ment Corporation
and EMC Capital Management, Inc. dated as of June 1, 1994
is incorporated by reference to Exhibit 10.04 of the
Partnership's Annual Report on Form 10-K for the fiscal
year ended December 31, 1994.
10. 04 Amended and
Restated Customer Agreement, dated as of December 1,
1997, between the Partnership and Dean Witter Reynolds
Inc. is incorporated by reference to Exhibit 10.04 of the
Partnership's Form 10-K (File No. 0-19901) for fiscal
year ended December 31, 1998.
10.05 Customer Agreement, dated as of December 1, 1997, among
the Partnership, Carr Futures, Inc., and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit
10.05 of the Partnership's Form 10-K (File No. 0-19901)
for fiscal year ended December 31, 1998.
<PAGE>
10. 06 International
Foreign Exchange Master Agreement, dated as of
August 1, 1997, between the Partnership and Carr
Futures, Inc. is incorporated by reference to Exhibit 10.06
of the Partnership's Form 10-K (File No. 0-19901) for fiscal
year ended December 31, 1998.
10.07 Customer Agreement, dated as of May 1, 2000 between Morgan
Stanley & Co. Incorporated, the Partnership and Dean
Witter Reynolds Inc. is incorporated by reference to
Exhibit 10.07 of the Partnership's Form 10-Q (File No. 0-
19901) for the quarter ended June 30, 2000.
(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 14, 2000 By:/s/Raymond E. Koch _
Raymond E. Koch
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.
