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 March 31, 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
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 2000
(Unaudited) and December 31, 1999..........................2
Statements of Operations for the Quarters Ended
March 31, 2000 and 1999 (Unaudited)........................3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 2000 and 1999
(Unaudited)................................................4
Statements of Cash Flows for the Quarters Ended
March 31, 2000 and 1999 (Unaudited)........................5
Notes to Financial Statements (Unaudited)...............6-
10
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.......11-18
Item 3. Quantitative and Qualitative Disclosures about
Market Risk ....................................... 18-31
Part II. OTHER INFORMATION
Item 1. Legal Proceedings..................................... 32
Item 5. Other Information..................................... 32
Item 6. Exhibits and Reports on Form 8-K..................... .32
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
2000 1999
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 12,963,692 14,098,056
Net unrealized gain on open contracts 585,219 987,025
Total Trading Equity 13,548,911 15,085,081
Due from DWR 65,882 65,610
Interest receivable (DWR) 55,013 53,212
Total Assets 13,669,806 15,203,903
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 359,021 310,659
Accrued management fees 34,137 37,986
Accrued administrative expenses 15,095 9,491
Total Liabilities 408,253 358,136
Partners' Capital
Limited Partners (13,906.912 and
15,086.096 Units, respectively) 13,058,762 14,636,245
General Partner (215.962 Units) 202,791 209,522
Total Partners' Capital 13,261,553 14,845,767
Total Liabilities and Partners' Capital 13,669,806 15,203,903
NET ASSET VALUE PER UNIT 939.01 970.18
<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 March 31,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 189,568 1,094,288
Net change in unrealized (401,806) (1,177,208)
Total Trading Results (212,238) (82,920)
Interest Income (DWR) 160,458 158,240
Total Revenues (51,780) 75,320
EXPENSES
Brokerage commissions (DWR) 252,526 317,184
Management fees108,298 139,122
Transaction fees and costs 28,346 39,860
Administrative expenses 9,002 11,565
Total Expenses 398,172 507,731
NET LOSS (449,952) (432,411)
NET LOSS ALLOCATION
Limited Partners (443,221) (427,079)
General Partner (6,731) (5,332)
NET LOSS PER UNIT
Limited Partners
(31.17) (24.69)
General Partner
(31.17) (24.69)
<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 Quarters Ended March 31, 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 - (427,079) (5,332) (432,411)
Redemptions (522.682) (552,743) -
(552,743)
Partners' Capital,
March 31, 1999 17,123.411 $17,775,045 $227,044
$18,002,089
Partners' Capital,
December 31, 1999 15,302.058 $14,636,245 $209,522
$14,845,767
Net Loss - (443,221) (6,731) (449,952)
Redemptions (1,179.184) (1,134,262) -
(1,134,262)
Partners' Capital,
March 31, 2000 14,122.874 $13,058,762 $202,791
$13,261,553
<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 Quarters Ended March 31,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (449,952)
(432,411)
Noncash item included in net loss:
Net change in unrealized 401,806 1
,177,208
Increase in operating assets:
Due from DWR (272) (17,190)
Interest receivable (DWR) (1,801) (1,830)
Increase (decrease) in operating liabilities:
Accrued management fees (3,849) (2,297)
Accrued administrative expenses 5,604
2,115
Net cash provided by (used for) operating activities (48,464)
725,595
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in redemptions payable 48,362 68,808
Redemptions of Units (1,134,262)
(552,743)
Net cash used for financing activities (1,085,900)
(483,935)
Net increase (decrease) in cash (1,134,364) 241,660
Balance at beginning of period 14,098,056
17,208,838
Balance at end of period 12,963,692
17,450,498
<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") and an unaffiliated clearing commodity
broker, Carr Futures Inc. ("Carr"), provides clearing and
execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. The trading
advisors for the Partnership are ELM Financial, Inc., EMC Capital
Management, Inc. and Millburn Ridgefield Corporation (the
"Trading Advisors").
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
Treasury bill rates. The Partnership pays brokerage commissions
to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts, options on
futures contracts, physical commodities and other commodity
interests. Futures and forwards represent contracts for delayed
delivery of an instrument at a specified date and price. Risk
arises from changes in the value of these contracts and the
potential inability of counterparties to perform under the terms
of the contracts. There are numerous factors which may
significantly influence the market value of these contracts,
including interest rate volatility.
In June 1998, the Financial Accounting Standards Board ("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,
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 gains on open contracts are reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $585,219 and
$987,025 at March 31, 2000 and December 31, 1999, respectively.
Of the $585,219 net unrealized gain on open contracts at March
31, 2000, $607,410 related to exchange-traded futures contracts
and $(22,191) related to off-exchange-traded forward currency
contracts.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
March 31, 2000 and December 31, 1999 mature through December 2000
and June 2000, respectively. Off-exchange-traded forward currency
contracts held by the Partnership at March 31, 2000 and December
31, 1999 mature through June 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 and Carr act as
the futures commission merchants or the counterparties with
respect to most of the Partnership's assets. Exchange-traded
futures and future-styled options contracts are marked to market
on a daily basis, with variations in value settled on a daily
basis. Each of DWR and Carr, as a futures commission merchant for
the Partnership's exchange-traded futures and futures-styled
options contracts, are required, pursuant to regulations of the
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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
$13,571,102 and $15,055,871 at March 31, 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 Carr, the sole counterparty on all of such
contracts, to perform. The Partnership has a netting agreement
with Carr. This agreement, which seeks to reduce both the
Partnership's and Carr's exposure on off-exchange-traded forward
currency contracts, should materially decrease the Partnership's
credit risk in the event of Carr's bankruptcy or insolvency.
Carr's parent, Credit Agricole Indosuez, has guaranteed to the
Partnership payment of the net liquidating value of the
transactions in the Partnership's account with Carr (including
foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership deposits its assets with DWR as non-
clearing broker and Carr as clearing broker 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 investments 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 three months ended March 31, 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 Ended March 31, 2000
For the quarter ended March 31, 2000, the Partnership recorded
total trading losses net of interest income of $51,780 and posted
a decrease in Net Asset Value per Unit. The most significant
losses of approximately 2.3% were recorded in the global stock
index futures markets primarily from long Hang Seng Index futures
positions as Hong Kong's benchmark index plunged during January
to its biggest point fall since the Asian financial crisis
erupted in
<PAGE>
1997. The index slumped on the poor performance of U.S. stocks
as fears of rising interest rates prompted investors to take
profits. Additional losses of approximately 1.5% were experienced
in the global interest rate futures markets from long Japanese
government bond futures positions as prices slid lower during
February in reaction to the Japanese yen's weakness and a higher
Nikkei 225 Index. In the currency markets, losses of
approximately 1.0% were incurred from short Japanese yen
positions as the value of the yen reversed higher 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. In the agricultural markets, losses of
approximately 1.0% were recorded from long wheat futures
positions as prices declined during February as a result of
insufficient demand and heavy rain in the U.S. production area.
Newly established short positions resulted in additional losses
during March as wheat prices surged as warm and dry forecasts for
the central U.S. supported the entire grains complex. Smaller
losses of approximately 0.1% were experienced in the metals
markets due to choppy price movement in gold futures and a
reversal lower in base metals prices, particularly in copper
futures, during February. A portion of overall Partnership
losses was offset by gains recorded in the energy markets of
approximately 1.9% from long crude oil futures positions as oil
prices increased during January on growing speculation that OPEC
would extend production cuts beyond the
<PAGE>
current deadline of March 2000 and frigid weather in the
Northeastern U.S. Additional gains of approximately 0.1% were
produced in the soft commodities markets from short sugar futures
positions as prices dropped during January amid sustained fears
of a global supply surplus. Total expenses for the three months
ended March 31, 2000 were $398,172, resulting in a net loss of
$449,952. The value of a Unit decreased from $970.18 on December
31, 1999 to $939.01 at March 31, 2000.
For the Quarter Ended March 31, 1999
For the quarter ended March 31, 1999, the Partnership recorded
total trading revenues including interest income of $75,320 and,
after expenses, posted a decrease in Net Asset Value per Unit.
The Partnership recorded net losses of approximately 2.6% in the
global stock index futures markets 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. Losses were also recorded in this market
complex from long IBEX-35 Index futures positions as Spanish
stock prices also moved in a trendless manner during January and
March in response to the uncertainty caused by the Brazilian
economic crisis. In the global interest rate futures markets,
losses of approximately 1.8% were experienced during January and
February primarily from short positions in Japanese government
bond futures as interest rate prices in Japan spiked higher amid
sizable losses
<PAGE>
in global stock markets in early January, a "flight-to-quality"
due to renewed financial-market turmoil in Brazil and an
announcement by the Japanese Ministry of Finance that they would
resume outright purchases of government bonds. In soft
commodities, losses of approximately 0.9% were recorded primarily
from long positions in coffee and sugar futures during January as
prices declined amid fears that economic turmoil in Brazil would
lead them to flood the market with increased exports. Losses
were also recorded during March from long coffee futures
positions as prices surged late in the month as options-related
buying triggered waves of buy-stops at several key resistance
levels, attracting fund short-covering. In the metals markets,
losses of approximately 0.6% were recorded primarily from long
copper futures positions during February as copper prices fell to
a 12-year low amid a continued rise in supplies and declining
demand amid a worldwide economic slowdown, particularly in Asia.
Losses were also experienced from short positions in copper
futures during March as prices reversed higher in response to a
decline in LME warehouse stocks and evidence that Japanese
consumption has stabilized. A portion of the Partnership's
overall losses for the quarter was offset by gains of
approximately 1.5% recorded in the currency markets primarily
from short positions in the European common currency and the
Swiss franc as the value of these European currencies declined
versus the U.S. dollar during February and March. Some of the
fundamental reasons that led to the decline in the value of the
euro and Swiss franc were the strength of the
<PAGE>
U.S. economy, concerns pertaining to the economic health of
Europe and Japan and growing uncertainty about the military
action in Yugoslavia. Additional gains of approximately 0.8%
were recorded in the energy markets during March primarily from
long futures positions in crude oil and its refined products,
heating oil and unleaded gasoline, as oil prices moved
considerably higher. The substantial recovery in oil prices
during March was largely attributed to the 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
1, 1999. Smaller gains of approximately 0.3% were recorded in
the agricultural markets during January and February primarily
from short positions in soybean and soybean oil futures as prices
in these markets moved lower due to beneficial growing weather in
South America and speculation that Brazil would increase exports
to aid its ailing economy. Total expenses for the three months
ended March 31, 1999 were $507,731, resulting in a net loss of
$432,411. The value of a Unit decreased from $1,076.00 at
December 31, 1998 to $1,051.31 at March 31, 1999.
Risks Associated With the Euro. On January 1, 1999, eleven
countries in the European Union established fixed conversion
rates on their existing sovereign currencies and converted to a
common single currency (the euro). During a three-year transition
period, the sovereign currencies will continue to exist but only
as a fixed denomination of the euro. Conversion to the euro
<PAGE>
prevents the Trading Advisors from trading those sovereign
currencies and thereby limits their ability to take advantage of
potential market opportunities that might otherwise have existed
had separate currencies been available to trade. This could
adversely affect the performance results of the Partnership.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool 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.
<PAGE>
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-
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.
<PAGE>
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
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
<PAGE>
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 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 March 31, 2000 and 1999. As
of March 31, 2000 and 1999, the Partnership's total
capitalization was approximately $13 million and $18 million,
respectively.
Primary Market March 31, 2000 March 31, 1999
Risk Category Value at Risk Value at Risk
Interest Rate (1.62)% (0.91)%
Currency (1.58) (1.84)
Equity (0.69) (0.89)
Commodity (0.70) (0.78)
Aggregate Value at Risk (2.49)% (2.27)%
<PAGE>
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 March 31, 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.
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 April 1,
1999 through March 31, 2000.
Primary Market Risk Category High Low Average
Interest Rate (2.35)% (0.91)% (1.54)%
Currency (2.06) (1.58) (1.81)
Equity (1.09) (0.62) (0.82)
Commodity (1.24) (0.70) (0.97)
Aggregate Value at Risk (4.10)% (2.27)% (2.80)%
<PAGE>
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. 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 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;
<PAGE>
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 March 31, 2000 and for the end of the four
quarterly reporting periods from April 1, 1999 through March 31,
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. The
Partnership also maintains a substantial portion (approximately
83%) of its available assets in cash at DWR. A decline in short
term interest rates will result in a decline in the Partnership's
<PAGE>
cash management income. This cash flow risk is not considered
material.
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and the
potential losses caused by such movements, taking into account
the leverage, optionality and multiplier features of the
Partnership's market sensitive instruments.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (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,
<PAGE>
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 March 31, 2000, by market sector. It may be
anticipated however, that these market exposures will vary
materially over time.
Interest Rate - The primary market exposure in the Partnership is
in the 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.
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
<PAGE>
foreseeable future. The changes in interest rates, which have
the most effect on the Partnership, are changes in long-term, as
opposed to short-term, rates. Most of the speculative futures
positions held by the Partnership are in medium- to long-term
instruments. Consequently, even a material change in short-term
rates would have little effect on the Partnership, were the
medium- to long-term rates to remain steady.
Currency The second largest market exposure at March 31, 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 first 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
<PAGE>
reflect the exchange rate risk inherent to the dollar-based
Partnership in expressing VaR in a functional currency other than
dollars.
Equity - The primary equity exposure is to equity price risk in
the G-7 countries. The stock index futures traded by the
Partnership are by law limited to futures on broadly based
indices. As of March 31, 2000, the Partnership's primary
exposures were in the Hang Seng (China) and Nikkei (Japan) 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
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 principal market exposures
of the Partnership have consistently been in precious metals,
gold and silver. A reasonable amount of 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 they
<PAGE>
have perceived market opportunities to develop. Demeter
anticipates that gold and silver will remain the primary metals
market exposure for the Partnership.
Energy - On March 31, 2000, the Partnership's energy exposure was
shared by futures contracts in the oil and natural gas markets.
Price movements in these markets result from political
developments in the Middle East, weather patterns, and other
economic fundamentals. It is possible that volatility will
remain high and that 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 is expected to continue in this choppy pattern.
Soft Commodities and Agriculturals - On March 31, 2000, the
Partnership had a reasonable amount of exposure in the markets
that comprise these sectors. Most of the exposure, however, was
in the sugar, wheat and soybeans and soybean related products
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 March 31, 2000:
<PAGE>
Foreign Currency Balances - The Partnership's primary foreign
currency balances are in euros, British pounds and 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
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
On March 3, 2000, the plaintiffs in the New York action filed an
appeal of the order dismissing the consolidated complaint.
(Please refer to Legal Proceedings previously disclosed in the
Partnership's Form 10-K for the year ended December 31, 1999 for
a more detailed discussion).
Item 5. OTHER INFORMATION
Effective January 31, 2000, Mark J. Hawley resigned as Chairman
of the Board and a Director of Demeter and Dean Witter Futures
and Currency Management Inc. ("DWFCM") and Robert E. Murray
replaced him as Chairman of the Board of Demeter and DWFCM.
Demeter has determined, commencing in May 2000, to transfer the
Partnership's futures and options clearing from Carr to Morgan
Stanley & Co. Incorporated ("MS & Co."), an affiliate of Demeter,
while trades on the London Metal Exchange will be cleared by
Morgan Stanley & Co. International Limited ("MSIL"), also an
affiliate of Demeter. In addition, MS & Co. and MSIL, rather
than Carr, will act as the counterparty on all of the
Partnership's foreign currency forward trades. DWR will continue
to act as the non-clearing commodity broker for the Partnership.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K. - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dean Witter Global Perspective
Portfolio L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
May 12, 2000 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
Director and Chief Financial
Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Global Perspective Portfolio L.P. and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 12,963,692
<SECURITIES> 0
<RECEIVABLES> 120,895<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,669,806<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 13,669,806<F3>
<SALES> 0
<TOTAL-REVENUES> (51,780)<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 398,172
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (449,952)
<INCOME-TAX> 0
<INCOME-CONTINUING> (449,952)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (449,952)
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include Due from DWR of $65,882 and interest
receivable of $55,013.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $585,219.
<F3>Liabilities include redemptions payable of $359,021, accrued
management fees of $34,137 and accrued administrative expenses
of $15,095.
<F4>Total revenue includes realized trading revenue of $189,568, net
change in unrealized of $(401,806) and interest income of $160,458.
</FN>
</TABLE>
