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 period ended June 30, 1996 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 number 33-55806
DEAN WITTER WORLD CURRENCY FUND L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3700691
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 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 WORLD CURRENCY FUND
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 1996 (Unaudited) and December 31, 1995..........2
Statements of Operations for the Quarters Ended
June 30, 1996 and 1995 (Unaudited).......................3
Statements of Operations for the Six Months Ended
June 30, 1996 and 1995 (Unaudited).......................4
Statements of Changes in Partners' Capital for
the Six Months Ended June 30, 1996 and 1995
(Unaudited)..............................................5
Statements of Cash Flows for the Six Months Ended
June 30, 1996 and 1995 (Unaudited).......................6
Notes to Financial Statements (Unaudited).............7-10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations........................................11-15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K..................... 16
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 28,068,461 31,916,332
Net unrealized gain (loss) on open contracts 1,149,268 (634,569)
Net option premiums 725,925 195,738
Total Trading Equity 29,943,654 31,477,501
Interest receivable (DWR) 99,006 113,878
Total Assets 30,042,660 31,591,379
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 659,509 905,887
Accrued management fees 74,952 78,670
Accrued administrative expenses 31,559 97,297
Accrued brokerage commissions (DWR) 16,560 12,384
Accrued transaction fees and costs 828 619
Total Liabilities 783,408 1,094,857
Partners' Capital
Limited Partners (41,894.354 and
47,100.837 Units, respectively) 28,439,549 29,734,237
General Partner (1,207.506 Units) 819,703 762,285
Total Partners' Capital 29,259,252 30,496,522
Total Liabilities and Partners' Capital 30,042,660 31,591,379
NET ASSET VALUE PER UNIT 678.84 631.29
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 844,154 (1,497,373)
Net change in unrealized 1,315,536 (3,393,214)
Total Trading Results 2,159,690 (4,890,587)
Interest Income (DWR) 299,628 479,950
Total Revenues 2,459,318 (4,410,637)
EXPENSES
Brokerage commissions (DWR) 307,269 438,697
Management fees 227,397 330,433
Administrative expenses 18,980 26,866
Transaction fees and costs 18,295 92,443
Total Expenses 571,941 888,439
NET INCOME (LOSS) 1,887,377 (5,299,076)
NET INCOME (LOSS) ALLOCATION
Limited Partners 1,837,323 (5,206,300)
General Partner 50,054 (92,776)
NET INCOME (LOSS) PER UNIT
Limited Partners 41.45 (76.83)
General Partner 41.45 (76.83)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 962,658 (1,152,337)
Net change in unrealized 1,783,837 2,175,660
Total Trading Results 2,746,495 1,023,323
Interest Income (DWR) 604,932 1,008,904
Total Revenues 3,351,427 2,032,227
EXPENSES
Brokerage commissions (DWR) 588,381 1,262,713
Management fees 462,364 682,696
Administrative expenses 38,831 53,866
Transaction fees and costs 36,707 240,039
Total Expenses 1,126,283 2,239,314
NET INCOME (LOSS) 2,225,144 (207,087)
NET INCOME (LOSS) ALLOCATION
Limited Partners 2,167,726 (200,669)
General Partner 57,418 (6,418)
NET INCOME (LOSS) PER UNIT
Limited Partners 47.55 (5.32)
General Partner 47.55 (5.32)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 1996 and 1995
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1994 76,563.617 $46,629,315 $747,188 $47,376,503
Net Loss - (200,669) (6,418) (207,087)
Redemptions (11,003.372) (6,950,115) - (6,950,115)
Partners' Capital
June 30, 1995 65,560.245 $39,478,531 $740,770 $40,219,301
Partners' Capital
December 31, 1995 48,308.363 $29,734,237 $762,285 $30,496,522
Net Income - 2,167,726 57,418 2,225,144
Redemptions (5,206.503) (3,462,414) - (3,462,414)
Partners' Capital
June 30, 1996 43,101.860 $28,439,549 $819,703 $29,259,252
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 2,225,144 (207,087)
Noncash item included in net income (loss):
Net change in unrealized (1,783,837) (2,175,660)
(Increase) decrease in operating assets:
Interest receivable (DWR) 14,872 (62,182)
Net option premiums (530,187) 803,950
Receivable from DWR - 200,640
Increase (decrease) in operating liabilities:
Accrued management fees (3,718) (20,890)
Accrued administrative expenses (65,738) (21,659)
Accrued brokerage commissions (DWR) 4,176 5,400
Accrued transaction fees and costs 209 270
Net cash used for operating activities (139,079) (1,477,218)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (246,378) (1,178,270)
Redemptions of units (3,462,414) (6,950,115)
Net cash used for financing activities (3,708,792) (8,128,385)
Net decrease in cash (3,847,871) (9,605,603)
Balance at beginning of period 31,916,332 50,685,551
Balance at end of period 28,068,461 41,079,948
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER WORLD CURRENCY FUND 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. The financial statements and
condensed notes herein should be read in conjunction with the
Partnership's December 31, 1995 Annual Report on Form 10-K.
1. Organization
Dean Witter World Currency Fund L.P. (the "Partnership") is a
limited partnership organized to engage in the speculative trading
of commodity futures contracts, commodity options contracts and
forward contracts on foreign currencies. The General Partner for
the Partnership is Demeter Management Corporation (the "General
Partner"). The commodity broker is Dean Witter Reynolds Inc.
("DWR"). Through May 31, 1995 the General Partner retained CCA
Capital Management Inc, Ezra Zask Associates Inc. and Millburn
Ridgefield Corporation ("Millburn") as the trading advisors of the
Partnership. Effective June 1, 1995, the trading advisors for the
Partnership are John W. Henry & Co., Inc. and Millburn. Both the
General Partner and DWR are wholly owned subsidiaries of Dean
Witter, Discover & Co.
2. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity trading
accounts to meet margin requirements as needed. DWR pays interest
on these funds based on current 13-week U.S. Treasury Bill rates.
Brokerage expenses incurred by the Partnership are paid to DWR.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Financial Instruments
The Partnership trades futures contracts, forward contracts,
options on futures contracts and related instruments in currencies.
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. At
June 30, 1996, open contracts were:
Contract or
Notional Amount
$
Exchange Traded Contracts
Financial Futures:
Commitments to Purchase 52,897,000
Commitments to Sell 33,086,000
Off Exchange Traded Forward
Currency Contracts
Commitments to Purchase 133,001,000
Commitments to Sell 130,747,000
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward commitments
to purchase and to sell the same currency on the same date in the
future. These commitments are economically offsetting, but are not
offset in the forward market until the settlement date.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The unrealized gain on open contracts is reported as a component of
"Equity in Commodity futures trading accounts" on the Statement of
Financial Condition and totaled $1,149,268 at June 30, 1996. Of
this amount, $571,417 related to exchange-traded futures contracts
and $577,851 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1996 mature through September 1996. Off-exchange-traded
forward currency contracts held by the Partnership at June 30, 1996
matured through September 1996. The contract amounts in the above
table represent the Partnership's extent of involvement in the
particular class of financial instrument, but not the credit risk
associated with counterparty nonperformance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial Condition.
The Partnership also has credit risk because DWR acts as the
futures commission merchant or the sole counterparty, with respect
to most of the Partnership's assets. Exchange-traded futures and
options contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. DWR, as the futures
commission merchant for all of the Partnership's exchange-traded-
futures and options contracts, is required pursuant to regulations
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
of the Commodity Futures Trading Commission to segregate from its
own assets and for the sole benefit of its commodity customers all
funds held by DWR with respect to exchange-traded futures and
options contracts including an amount equal to the net unrealized
gain on all open futures contracts which totaled $28,639,878 at
June 30, 1996. With respect to the Partnership's 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
DWR, the counterparty on all such contracts, to perform.
For the quarter ended June 30, 1996, the average fair value of
financial instruments held for trading purposes was as follows:
Assets Liabilities
$ $
Exchange-Traded Contracts
Financial Futures 34,801,000 39,636,000
Off-Exchange-Traded Forward
Currency Contracts 142,258,000 161,369,000
4. Subsequent Event
Effective September 1, 1996, maximum total brokerage commissions
and transaction fees chargeable to the Partnership will be capped
at .65% per month of adjusted Net Assets as defined in the Limited
Partnership Agreement.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in separate
commodity interest trading accounts with DWR and are used by the
Partnership as margin to engage in commodity futures, forward
contracts on foreign currencies and other commodity interest
trading. DWR holds such assets in either designated depositories
or in securities approved by the Commodity Futures Trading
Commission for investment of customer funds. The Partnership's
assets held by DWR may be used as margin solely for the
Partnership's trading. Since the Partnership's sole purpose is to
trade in commodity futures contracts, forward contracts on foreign
currencies and other commodity interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investment in commodity futures, forward
contracts and other commodity interests may be illiquid. If the
price of the futures contract for a particular commodity has
increased or decreased by an amount equal to the "daily limit",
positions in the commodity can neither be taken nor liquidated
unless traders are willing to effect trades at or within the limit.
Commodity futures prices have occasionally moved the daily limit
for several consecutive days with little or no trading. Such
market conditions could prevent the Partnership from promptly
liquidating its commodity futures positions.
<PAGE>
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.
Capital Resources - The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions of additional
Units in the future will impact the amount of funds available for
investments in commodity futures and forward contracts and other
commodity interests. As redemptions are at the discretion of the
Limited Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions.
Results of Operations
For the Quarter and Six Months Ended June 30, 1996
For the quarter ended June 30, 1996, the Partnership's total
trading revenues including interest income were $2,459,318. During
the second quarter, the Partnership posted an increase in Net Asset
Value per Unit. The most significant trading gains were recorded
in this currency-only Fund during April as the value of the German
mark and Swiss franc moved lower versus the U.S. dollar and other
world currencies. As a result, gains were recorded from short
German mark and Swiss franc positions. Short Swiss franc positions
also profited during May and June as its value continued to move
<PAGE>
lower versus the U.S. dollar. Additional gains were recorded
during June from short Japanese yen positions as the value of the
yen moved lower relative to the U.S. dollar. Smaller gains were
recorded from long British pound positions as the value of the
British pound moved higher during May and from short French franc
positions as its value moved lower during April. Trading gains
recorded from long Australian dollar positions during April and May
were partially offset by losses recorded during June as the value
of the Australian dollar lost its upward momentum. Losses recorded
in the Japanese yen during April, as the value of the yen moved
higher versus the U.S. dollar late in the month, and during May, as
its value then moved lower, offset a portion of overall gains
recorded during the quarter. Total expenses for the quarter were
$571,941, resulting in net income of $1,887,377. The value of an
individual Unit in the Partnership increased from $637.39 at March
31, 1996 to $678.84 at June 30, 1996.
For the six months ended June 30, 1996, the Partnership's total
trading revenues including interest income were $3,351,427. During
the first half of the year, the partnership posted an increase in
Net Asset Value per Unit. The most significant trading gains were
recorded from short Swiss franc positions as the value of the Swiss
franc moved lower versus the U.S. dollar during January and
throughout the second quarter. Additional gains were recorded from
long Australian dollar positions as its value moved higher relative
to other world currencies between late February and early May.
Profits were also recorded during January and April from
transactions involving the German mark and during January and May
<PAGE>
from transactions involving the British pound. Losses recorded
from transactions involving the Japanese yen during April and May
offset gains recorded in the yen during January, March and June.
Losses recorded in most major world currencies during February, due
to sharp reversals and volatile price movement, also offset a
portion of the gains recorded in the first half of the year. Total
expenses for the period were $1,126,283, resulting in net income of
$2,225,144. The value of an individual Unit in the Partnership
increased from $631.29 at December 31, 1994 to $678.84 at June 30,
1996.
For the Quarter and Six Months Ended June 30, 1995
For the quarter ended June 30, 1995, the Partnership's total
trading losses net of interest income were $4,410,637. During the
second quarter, the Partnership posted a decrease in Net Asset
Value per Unit. The most significant trading losses were recorded
in this currency only Fund during May as a result of a reversal in
the downward price trend of the U.S. dollar versus the Japanese yen
and the major European currencies. The majority of these losses
were recorded from transactions involving the Japanese yen, German
mark and Swiss franc. Smaller losses in April and June compounded
the overall Partnership losses for the quarter. In April,
transactions involving the German mark, Swiss franc and Italian
lira resulted in small losses to the Partnership. In June, small
losses were recorded in transactions involving the Japanese yen,
British pound and Swiss franc. Total expenses for the period were
$888,439, resulting in a net loss of $5,299,076. The value of an
<PAGE>
individual Unit in the Partnership decreased from $690.30 at March
31, 1995 to $613.47 at June 30, 1995.
For the six months ended June 30, 1995, the Partnership's total
trading gains including interest income were $2,032,227. During
the first six months, the Partnership posted a decrease in Net
Asset Value per Unit. The most significant trading losses were
recorded in May as the U.S. dollar strengthened versus the Japanese
yen and the major European currencies, halting the previously
established downward trend. Transactions primarily involving the
Japanese yen, German mark and Swiss franc resulted in losses to the
Partnership during May. Transactions involving the Japanese yen
also resulted in losses in January, April and June. Gains from
trading the Japanese yen, German mark and Swiss franc were recorded
in February and March, as the U.S. dollar trended downward versus
these currencies. These gains help to offset a majority of the
losses experienced by the Partnership during the other months.
Total expenses for the period were $2,239,314, resulting in a net
loss of $207,087. The value of an individual Unit in the
Partnership decreased from $618.79 at December 31, 1994 to $613.47
at June 30, 1995.
<PAGE>
PART II. OTHER INFORMATION
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 World Currency
Fund L.P.
(Registrant)
By: Demeter Management Corporation
(General Partner)
August 12, 1996 By: /s/ Patti L. Behnke
Patti L. Behnke
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.
<PAGE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter World Currency Fund L.P. and is qualified in its entirety by
references to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 28,068,461
<SECURITIES> 0
<RECEIVABLES> 99,006
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 30,042,660<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 30,042,660<F2>
<SALES> 0
<TOTAL-REVENUES> 3,351,427<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,126,283
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,225,144
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,225,144
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,225,144
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,149,268 and net option premiums of $725,925.
<F2>Liabilities include redemptions payable of $659,509, accrued brokerage
commissions of $16,560, accrued management fees of $74,952, accrued
administrative expenses of $31,559 and accrued transaction fees and costs of
$828.
<F3>Total revenues includes realized trading revenue of $962,658, net change
in unrealized of $1,783,837 and interest income of $604,932.
</FN>
</TABLE>
