UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 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
June 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition June 30, 2000
(Unaudited) and December 31, 1999.....................2
Statements of Operations for the Quarters Ended
June 30, 2000 and 1999 (Unaudited)....................3
Statements of Operations for the Six Months Ended
June 30, 2000 and 1999 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 2000 and 1999
(Unaudited)...........................................5
Statements of Cash Flows for the Six Months Ended
June 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..13-22
Item 3. Quantitative and Qualitative Disclosures about
Market Risk .................................. 23-35
Part II. OTHER INFORMATION
Item 1. Legal Proceedings..............................36-37
Item 5. Other Information..............................37-38
Item 6. Exhibits and Reports on Form 8-K...............38-39
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
2000 1999 $
$
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 11,384,090 14,098,056
Net unrealized gain on open contracts (MSIL)
357,384 -
Net unrealized loss on open contracts (MS & Co.)
(69,911) -
Net unrealized gain (loss) on open contracts (Carr) (150,084)
987,025
Total net unrealized gain on open contracts 137,389
987,025
Total Trading Equity 11,521,479 15,085,081
Due from DWR 64,768 65,610
Interest receivable (DWR) 45,946 53,212
Total Assets 11,632,193 15,203,903
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 276,420 310,659
Accrued management fees 29,023 37,986
Accrued administrative expenses 20,365 9,491
Total Liabilities 325,808 358,136
Partners' Capital
Limited Partners (12,800.986 and
15,086.096 Units, respectively) 11,118,802 14,636,245
General Partner (215.962 Units) 187,583 209,522
Total Partners' Capital 11,306,385 14,845,767
Total Liabilities and Partners' Capital 11,632,193 15,20
3,903
NET ASSET VALUE PER UNIT 868.59 970.18
<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 June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (327,418) 862,362
Net change in unrealized (447,830) 844,055
Total Trading Results (775,248) 1,706,417
Interest Income (DWR) 146,555 160,572
Total Revenues (628,693) 1,866,989
EXPENSES
Brokerage commissions (DWR) 213,416 319,985
Management fees 92,415 141,772
Transaction fees and costs 26,645 42,224
Administrative expenses 5,270 11,785
Incentive fees
- 18,001
Total Expenses 337,746 533,767
NET INCOME (LOSS) (966,439) 1,333,222
NET INCOME (LOSS) ALLOCATION
Limited Partners (951,231) 1,316,261
General Partner (15,208) 16,961
NET INCOME (LOSS) PER UNIT
Limited Partners
(70.42) 78.54
General Partner
(70.42) 78.54
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (137,850) 1,956,650
Net change in unrealized (849,636) (333,153)
Total Trading Results (987,486) 1,623,497
Interest Income (DWR) 307,013 318,812
Total Revenues (680,473) 1,942,309
EXPENSES
Brokerage commissions (DWR) 465,942 637,169
Management fees 200,713 280,894
Transaction fees and costs 54,991 82,084
Administrative expenses 14,272 23,350
Incentive fees ______-___ 18,001
Total Expenses 735,918 1,041,498
NET INCOME (LOSS) (1,416,391) 900,811
NET INCOME (LOSS) ALLOCATION
Limited Partners (1,394,452) 889,182
General Partner (21,939) 11,629
NET INCOME (LOSS) PER UNIT
Limited Partners (101.59) 53.85
General Partner
(101.59) 53.85
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 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 Income
- 889,182 11,629 900,811
Redemptions (1,138.732) (1,237,158)
- (1,237,158)
Partners' Capital,
June 30, 1999 16,507.361 $18,406,891 $244,005
$18,650,896
Partners' Capital,
December 31, 1999 15,302.058 $14,636,245 $209,522 $14,845,767
Net Loss
- (1,394,452) (21,939) (1
,416,391)
Redemptions (2,285.110) (2,122,991)
- (2,122,991)
Partners' Capital,
June 30, 2000 13,016.948 $11,118,802 $187,583
$11,306,385
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S>
<C> <C>
Net income (loss) (1,416,391) 900,811
Noncash item included in net income (loss):
Net change in unrealized 849,636 333,153
(Increase) decrease in operating assets:
Due from DWR 842 (35,035)
Interest receivable (DWR) 7,266 (687)
Increase (decrease) in operating liabilities:
Accrued management fees (8,963) (845)
Accrued administrative expenses 10,874 13,899
Incentive fees payable
_______-___ 18,001
Net cash provided by (used for) operating activities (556,736)
1,229,297
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (34,239) (775)
Redemptions of Units (2,122,991)
(1,237,158)
Net cash used for financing activities (2,157,230)
(1,237,933)
Net decrease in cash (2,713,966) (8,636)
Balance at beginning of period 14,098,056
17,208,838
Balance at end of period 11,384,090
17,200,202
<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, 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. Prior to May 2000, Carr Futures
Inc. provided 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 ELM Financial, Inc.
("ELM"), 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,
1999. In June 1999, the FASB issued SFAS No. 137, "Accounting
for Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of SFAS No. 133," which defers the required
implementation of SFAS No. 133 until fiscal years beginning after
June 15, 2000. However, the Partnership had previously elected
to adopt the provisions of SFAS No. 133 beginning with the fiscal
year 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 are reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $137,389 and
$987,025 at June 30, 2000 and December 31, 1999, respectively.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $137,389 net unrealized gain on open contracts at June 30,
2000, $309,641 related to exchange-traded futures contracts and
$(172,252) 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
and $29,210 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 2000 and December 31, 1999 mature through June 2001 and June
2000, respectively. Off-exchange-traded forward currency
contracts held by the Partnership at June 30, 2000 and December
31, 1999 mature through September 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
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
futures and future-styled options contracts are marked to market
on a daily basis, with variations in value settled on a daily
basis. DWR, MS & Co., and MSIL each as a futures commission
merchant for 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, which funds, in the
aggregate, totaled $11,693,731 and $15,055,871 at June 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>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
4. Subsequent Event
On August 1, 2000, the Net Assets previously managed by ELM were
reallocated equally among EMC and Millburn following the payment
of July redemptions out of the Partnership from those Net Assets
previously managed by ELM. Future redemptions out of the
Partnership will be allocated among EMC and Millburn in
proportion to the percentage of monthly average equity managed by
each.
<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 quarter and six months ended June 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.
Results of Operations
For the Quarter and Six Months Ended June 30, 2000
For the quarter ended June 30, 2000, the Partnership recorded
total trading losses net of interest income of $628,693 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 5.4% were recorded in the
global interest rate futures markets primarily from long U.S.
interest rate futures positions during April as prices declined
amid fears of
<PAGE>
higher interest rates and inflation. Newly established short
U.S. interest rate futures positions incurred additional losses
during May as prices moved higher later in the month as investors
shed stock holdings for the safe haven of bonds. Losses were
also recorded from long German interest rate futures positions
during June as European bond prices declined following the
European Central Bank's interest rate increase, anxiety about oil
prices prior to OPEC's meeting, weakness in the euro and strong
German inflation numbers. Additional losses of approximately
4.6% were experienced in the currency markets as a reversal lower
in the value of the U.S. dollar relative to other major
currencies resulted in losses for short Japanese yen positions
during June. In the metals markets, losses of approximately 2.1%
were incurred from long nickel futures positions as most base
metals prices moved lower in late May amid a technical sell-off.
Short silver futures positions also incurred losses as prices
surged during late May, helped by a jump in gold prices and a
slip in the U.S. dollar. In the global stock index futures
markets, losses of approximately 2.0% were recorded from trading
Hang Seng Index futures during April and June. Long DAX Index
futures positions were also unprofitable as European stock index
futures prices decreased after the European Central Bank's
aggressive interest rate hike. Smaller losses of approximately
0.6% were recorded in the agricultural markets during May and
June from short wheat futures positions as prices move higher on
weather concerns. A portion of overall Partnership losses was
offset by gains recorded
<PAGE>
in the energy markets of approximately 5.7% primarily from long
natural gas futures positions as prices moved to four-year highs
during May amid supply woes that were heightened by low storage
injection data reported by the American Gas Association.
Additional gains of approximately 1.0% were experienced in the
soft commodities markets from long sugar futures positions as
prices trended to 22-month highs during June due to strong demand
and declining production from Brazil. Total expenses for the
three months ended June 30, 2000 were $337,746, resulting in a
net loss of $966,439. The value of a Unit decreased from $939.01
at March 31, 2000 to $868.59 at June 30, 2000.
For the six months ended June 30, 2000 the Partnership recorded
total trading losses net of interest income of $680,473 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 6.4% were recorded in the
global interest rate futures markets primarily from long U.S.
interest rate futures positions 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
later in the month as investors shed stock holdings for the safe
haven of bonds. Additional losses of approximately 5.1% were
experienced in the currency markets primarily from short Japanese
yen positions as the value of the yen strengthened versus the
U.S. dollar and major European currencies during March on reports
of yen repatriation by
<PAGE>
institutions ahead of the Japanese fiscal year-end on March 31.
During June, short Japanese yen positions incurred losses as the
value of the U.S. dollar weakened versus the yen on the
perception that interest rates in the U.S. may have topped out.
In the global stock index futures markets, losses of
approximately 4.1% resulted primarily from trading Hang Seng
Index futures throughout the first half of the year. In the
metals markets, losses of approximately 2.0% were incurred
primarily from short silver futures positions as prices surged
during late May on a jump in gold prices and a slip in the U.S.
dollar. Smaller losses of approximately 1.5% were recorded in
the agricultural markets primarily from long wheat futures
positions during February as prices declined on insufficient
demand and heavy rain in the U.S. production area. Newly
established short wheat futures positions were also unprofitable
as prices moved higher during March and a majority of the second
quarter on weather concerns. A portion of overall Partnership
losses was offset by gains of approximately 7.0% recorded in the
energy markets primarily from long natural gas futures positions
as prices moved to four-year highs during May amid supply woes
that were heightened by low storage injection data. Long futures
positions in crude oil and its refined products also contributed
profits as oil prices increased during January on growing
speculation that OPEC would extend production cuts beyond the
deadline of March 2000. Additional gains of approximately 1.0%
were recorded in the soft commodities markets primarily from long
sugar futures positions as prices trended to
<PAGE>
22-month highs during June due to strong demand and declining
production from Brazil. During the first quarter, short sugar
futures positions also resulted in gains as prices dropped during
January amid sustained fears of global supply surplus. Total
expenses for the six months ended June 30, 2000 were $735,918,
resulting in a net loss of $1,416,391. The value of a Unit
decreased from $970.18 at December 31, 1999 to $868.59 at June
30, 2000.
For the Quarter and Six Months Ended June 30, 1999
For the quarter ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $1,866,989
and posted an increase in Net Asset Value per Unit. The most
significant gains of approximately 9.4% were experienced in the
global interest rate futures markets primarily from short
positions in Japanese bond futures as prices fell during quarter-
end amid news of stronger-than-expected economic growth in Japan.
Short positions in European bond futures were also profitable as
prices in these markets moved lower during June on a general
negative tone regarding the European common currency, a decline
in U.S. Treasury bond prices and bearish sentiment pertaining to
the overall health of the European economy. These gains were
partially offset by losses in the currency markets of
approximately 1.0% from short Japanese yen positions as the yen's
value temporarily strengthened during mid-June versus the U.S.
dollar on reports of stronger-than-expected gross domestic
<PAGE>
product data from Japan. Newly established long Japanese yen
positions produced losses later in June as the yen's value
weakened versus the U.S. dollar after the Bank of Japan
intervened to prevent a rise in the yen in an effort to assist
economic recovery in Japan. Additional losses of approximately
0.9% were incurred in the agricultural markets primarily from
short positions in soybean meal and corn futures as soybean meal
prices surged during April as a result of investment fund short-
covering, reports by the USDA lowering supply estimates and
unfavorable weather in South America, while corn prices edged
higher during May on an increase in U.S. exports and forecasts
for extended heat and dryness in most Midwestern states. In the
soft commodities markets, losses of approximately 0.8% were
recorded primarily from long coffee futures positions as prices
declined due to warm weather in Brazil and ample warehouse
supplies during June. Total expenses for the three months ended
June 30, 1999 were $533,767, resulting in net income of
$1,333,222. The value of a Unit increased from $1,051.31 at
March 31, 1999 to $1,129.85 at June 30, 1999.
For the six months ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $1,942,309
and posted an increase in Net Asset Value per Unit. The most
significant gains of approximately 7.1% were recorded in the
global interest rate futures markets primarily from short
positions in European bond futures, particularly British and
<PAGE>
German interest rate futures, as prices in these markets moved
lower during June amid a general negative tone over the European
common currency, a decline in U.S. Treasury bond prices and
bearish sentiment pertaining to the overall health of the
European economy. Additional gains were experienced during
February from short U.S. interest rate futures positions as
domestic bond prices fell significantly due to strong U.S.
economic data and warnings of inflation in the U.S. by Federal
Reserve Chairman Alan Greenspan. Short positions in U.S.
interest rate futures were also profitable during May as domestic
bond prices dropped sharply due to a rise in the Consumer Price
Index and Alan Greenspan's comments regarding the unlikely
possibility of continued U.S. economic expansion without
significant inflation. In the energy markets, gains of
approximately 0.8% were recorded primarily during March and April
from long crude oil futures positions as oil prices moved
considerably higher on news that both OPEC and non-OPEC countries
had reached an agreement to cut total output by approximately two
million barrels a day beginning April 1st. Smaller gains of
approximately 0.6% were experienced in the currency markets
primarily from short positions in the euro and Swiss franc as the
value of these European currencies declined versus the U.S.
dollar due to the strength of the U.S. economy, concerns
pertaining to the economic health of Europe and Japan, and
growing uncertainty about the military action in Yugoslavia. A
<PAGE>
portion of these gains was offset by losses in the global stock
index futures markets of approximately 3.0% primarily from
trading S&P 500 Index futures during January and February as
domestic equity prices moved in a choppy pattern on concerns that
strong economic growth in the U.S. would lead to an interest rate
hike by the Federal Reserve. Additional losses of approximately
1.6% were recorded 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 also unfavorable as prices declined
due to warm weather in Brazil and ample warehouse supplies. In
the metals markets, losses of approximately 1.3% were incurred
primarily during May from long positions in zinc and copper
futures as the prices of most base metals fell significantly amid
large supply, low demand and the unlikely possibility of a
production cut in the near future. Smaller losses of
approximately 0.6% were experienced in the agricultural markets
primarily from short corn futures positions as prices moved
higher on an increase in U.S. exports and forecasts for extended
heat and dryness in most Midwestern states. Total expenses for
the six months ended June 30, 1999 were $1,041,498, resulting in
net income of $900,811. The value of a Unit increased from
$1,076.00 at December 31, 1998 to $1,129.85 at June 30, 1999.
<PAGE>
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.
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.
<PAGE>
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-
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.
<PAGE>
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
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
<PAGE>
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 tables indicate the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by primary market risk category as of June 30, 2000 and 1999. As
of June 30, 2000 and 1999, the Partnership's total capitalization
was approximately $11 million and $19 million, respectively.
Primary Market June 30, 2000 June 30, 1999
Risk Category Value at Risk Value at Risk
Interest Rate (1.71)% (2.35)%
Currency (1.11) (2.06)
Equity (0.64) (1.09)
Commodity (1.29) (1.15)
Aggregate Value at Risk (2.25)% (4.10)%
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 June 30, 2000 and 1999 only and is not necessarily
<PAGE>
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.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR, as a percentage of total
Net Assets for the four quarterly reporting periods from July 1,
1999 through June 30, 2000.
Primary Market Risk Category High Low Average
Interest Rate (2.35)% (0.91)% (1.65)%
Currency (2.06) (1.11) (1.65)
Equity (1.09) (0.64) (0.83)
Commodity (1.29) (0.70) (0.98)
Aggregate Value at Risk (4.10)% (2.25)% (2.78)%
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
<PAGE>
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 performance of the Partnership, gives 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.
<PAGE>
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 June 30, 2000 and for the end of the four
quarterly reporting periods from July 1, 1999 through June 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
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. However, such balances, as well
as any market risk they may represent, are immaterial. At June
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 the
potential losses caused by such movements, taking into account
the leverage, optionality and multiplier features of the
Partnership's market-sensitive instruments.
<PAGE>
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (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
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership's primary market risk
exposures as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership's
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expro-
priations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical
price relationships, an influx of new market participants,
increased regulation and many other factors could result in
material losses as well as in material changes to the risk
exposures and the risk management strategies of the Partnership.
Investors must be prepared to lose all or substantially all of
their investment in the Partnership.
The following were the primary trading risk exposures of the
Partnership as of June 30, 2000, by market sector. It may be
<PAGE>
anticipated however, that these market exposures will vary
materially over time.
Interest Rate. The primary market exposure in the Partnership is
in the global interest rate sector. Exposure was spread across
the U.S., German, Japanese and European 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.
The G-7 countries consists 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 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
<PAGE>
Partnership, were the medium- to long-term rates to remain
steady.
Currency. The second largest market exposure at June 30, 2000 was
in the currency complex. 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 second quarter of
2000, the Partnership's major exposures were in the euro currency
crosses and outright U.S. dollar positions. Outright positions
consist of the U.S. dollar vs. other currencies. These other
currencies include the major and minor currencies. Demeter does
not anticipate that the risk profile of the Partnership's
currency sector will change significantly in the future. The
currency trading VaR figure includes foreign margin amounts
converted into U.S. dollars with an incremental adjustment to
reflect the exchange rate risk inherent to the dollar-based
Partnership in expressing VaR in a functional currency other than
dollars.
Equity. The primary equity exposure is to equity price risk in
the G-7 countries. The stock index futures traded by the
<PAGE>
Partnership are by law limited to futures on broadly based
indices. As of June 30, 2000, the Partnership's primary
exposures were in the Hang Seng (China), Nikkei (Japan) 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 June 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.
Soft Commodities and Agriculturals . On June 30, 2000, the
Partnership had exposure in the markets that comprise these
sectors. Most of the exposure, however, was in the coffee,
<PAGE>
sugar and cotton markets. Supply and demand inequalities, severe
weather disruption and market expectations affect price movements
in these markets.
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, nickel and zinc, the Partnership's principal
market exposures have consistently been in precious metals, gold
and silver. Exposure was evident in the gold market as gold
prices were volatile during the quarter. Silver prices have
remained volatile over this period, and the Trading Advisors have
from time to time taken positions as market opportunities
developed. Demeter anticipates that gold and silver will remain
the primary metals market exposure for the Partnership.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of June 30, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances 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.
<PAGE>
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
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
The following supplements Legal Proceedings previously disclosed
in the Partnership's Form 10-Q for the quarter ended March 31,
2000 and Form 10-K for the year ended December 31, 1999:
On October 25, 1996, the Market Surveillance Committee (the
"Committee") of the National Association of Securities Dealers
("NASD") filed a formal complaint against MS & Co. and seven
current and former traders, alleging violations of certain NASD
rules relating to manipulative and deceptive practices, locked
and crossed markets, and failure to supervise. Hearings were
held in June and July 1997. On April 13, 1998 the Committee
ruled that MS & Co. and the seven traders had engaged in
manipulative and deceptive practices and improperly locked or
crossed markets, but not that MS & Co. had failed to supervise
its traders. The Committee levied a fine of $1,000,000 on MS &
Co., a fine of $100,000 and a 90-day suspension on one of its
former traders, and fines of $25,000 and 30-day suspensions on
each of the remaining current and former traders. On January 18,
2000 the National Adjudicatory Council, which heard the appeal,
issued a ruling which upheld the Committee's April 1998 decision,
however, the National Adjudicatory Council reduced the firm's
fine to $495,000, reversed all previously imposed suspensions
against the traders,
<PAGE>
reduced the fine for each of six traders to $2,500 and dismissed
all charges against the seventh trader.
On January 11, 1999, the Securities and Exchange Commission
brought an action against 28 NASDAQ market makers, including MS &
Co., and 51 individuals, including one current and one former
trader employed by MS & Co., for certain conduct during 1994.
The core of the charges against MS & Co. concerns improper or
undisclosed coordination of price quotes with other broker-
dealers and related reporting, recordkeeping and supervisory
deficiencies in violation of Sections 15(b)(4)(E), 15(c)(1) and
(2) and 17(a) of the Securities Exchange Act and Rules 15c1-2,
15c2-7 and 17a-3 promulgated thereunder. Without admitting or
denying the charges, MS & Co. consented to the entry of a cease
and desist order and to the payment of a civil penalty of
$350,000, disgorgement of $4,170 and to submit certain of its
procedures to an independent consultant for review. In addition,
one current and one former trader employed by MS & Co. accepted
suspensions of less than two months each and were fined $25,000
and $30,000 respectively.
Item 5. OTHER INFORMATION
Effective July 1, 2000, Lewis A. Raibley, III resigned as Chief
Financial Officer and a Director of Demeter and Dean Witter
Futures Currency Management Inc. Effective July 10, 2000,
<PAGE>
Raymond E. Koch replaced Lewis A. Raibley, III as Chief
Financial Officer of Demeter.
On August 1, 2000, the Net Assets managed by ELM were re-
allocated equally among EMC and Millburn following the payment of
July redemptions out of the Partnership from those Net Assets
previously managed by ELM. Future redemptions will be allocated
among EMC and Millburn in proportion to the percentage of monthly
average equity managed by each.
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.
10.01Management 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.
<PAGE>
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.
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 filed herewith.
(B) Reports on form 8-K. - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dean Witter Global Perspective
Portfolio L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
August 10, 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.
