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 March 31, 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 L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1995
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
March 31, 1996 (Unaudited) and December 31, 1995...........2
Statements of Operations for the Quarters Ended
March 31, 1996 and 1995 (Unaudited) .......................3
Statements of Changes in Partners' Capital for
the Quarters Ended March 31, 1996 and 1995
(Unaudited).................................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1996 and 1995 (Unaudited).........................5
Notes to Financial Statements (Unaudited)................6-10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations.........................................11-14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................... 15
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 29,208,895 31,916,332
Net unrealized loss on open contracts (166,268) (634,569)
Net option premiums 773,487 195,738
Total Trading Equity 29,816,114 31,477,501
Interest receivable (DWR) 100,141 113,878
Total Assets 29,916,255 31,591,379
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 544,499 905,887
Accrued management fees 74,690 78,670
Accrued brokerage commissions 13,212 12,384
Accrued administrative expenses 12,580 97,297
Accrued transaction fees and costs 760 619
Total Liabilities 645,741 1,094,857
Partners' Capital
Limited Partners (44,715.142 and
47,100.857 Units, respectively) 28,500,865 29,734,237
General Partner (1,207.506 Units) 769,649 762,285
Total Partners' Capital 29,270,514 30,496,522
Total Liabilities and Partners' Capital 29,916,255 31,591,379
NET ASSET VALUE PER UNIT 637.39 631.29
<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 March 31,
1996 1995
$ $
<S> <C> <C>
REVENUES
Trading profit:
Realized 118,505 345,034
Net change in unrealized 468,301 5,568,875
Total Trading Results 586,806 5,913,909
Interest Income (DWR) 305,303 528,954
Total Revenues 892,109 6,442,863
EXPENSES
Brokerage commissions (DWR) 281,111 824,016
Management fees 234,967 352,263
Administrative expenses 19,852 27,000
Transaction fees and costs 18,412 147,595
Total Expenses 554,342 1,350,874
NET INCOME 337,767 5,091,989
NET INCOME ALLOCATION
Limited Partners 330,403 5,005,631
General Partner 7,364 86,358
NET INCOME PER UNIT
Limited Partners 6.10 71.51
General Partner 6.10 71.51
<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 Quarters Ended March 31, 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 Income - 5,005,631 86,358 5,091,989
Redemptions (6,041.674) (3,786,934) - (3,786,934)
Partners' Capital
March 31, 1995 70,521.943 $47,848,012 $833,546 $48,681,558
Partners' Capital
December 31, 1995 48,308.363 $29,734,237 $762,285 $30,496,522
Net Income - 330,403 7,364 337,767
Redemptions (2,385.715) (1,563,775) - (1,563,775)
Partners' Capital
March 31, 1996 45,922.648 $28,500,865 $769,649 $29,270,514
<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 Quarters Ended March 31,
1996 1995
$ $
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 337,767 5,091,989
Noncash item included in net income:
Net change in unrealized (468,301) (5,568,875)
(Increase) decrease in operating assets:
Net option premiums (577,749) 803,950
Interest receivable from DWR 13,737 21,631
Receivable from DWR - (922,192)
Increase (decrease) in operating liabilities:
Accrued management fees (3,980) 1,265
Accrued brokerage commissions (DWR) 828 -
Accrued administrative expenses (84,717) (48,525)
Accrued transaction fees and costs 141 -
Net cash used for operating activities (782,274) (620,757)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (361,388) (814,071)
Redemptions of units (1,563,775) (3,786,934)
Net cash used for financing activities (1,925,163) (4,601,005)
Net decrease in cash (2,707,437) (5,221,762)
Balance at beginning of period 31,916,332 50,685,551
Balance at end of period 29,208,895 45,463,789
<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
the 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 General Partner has retained John W. Henry & Co.,
Inc. and Millburn Ridgefield Corporation as the trading advisors of
the Partnership. Both the General Partner and the commodity
broker, Dean Witter Reynolds Inc. ("DWR") are wholly owned
subsidiaries of Dean Witter, Discover & Co.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Equity in Commodity Futures Trading Accounts" - The Partnership's
asset "Equity in Commodity futures trading accounts" consists of
cash on deposit at Dean Witter Reynolds Inc. ("DWR") DWR to be used
as margin for trading and the net asset or liability related to
unrealized gains or losses on open contracts and options premiums
paid or received. The asset or liability related to the unrealized
gains or losses on forward contracts is presented as a net amount
because the Partnership has a master netting agreement with DWR.
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.
3. Financial Instruments
The Partnership trades futures contracts, forward contracts,
options on futures contracts and related instruments in currencies.
Futures and forwards represents 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.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
There are numerous factors which may significantly influence the
market value of these contracts, including interest rate
volatility. At March 31, 1996 open contracts were:
Contract or
Notional Amount
$
Exchange-Traded Contracts
Financial Futures Contracts
Commitments to Purchase 34,238,000
Commitments to Sell 39,783,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 129,864,000
Commitments to Sell 134,519,000
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.
The unrealized loss on open contracts is reported as a component of
"Equity in Commodity futures trading accounts" on the Statement of
Financial Condition and totaled $166,268 at March 31, 1996. Of
this amount, $352,898 related to exchange-traded futures contracts
and $(519,166) related to off-exchange-traded forward currency
contracts.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Exchange-traded futures contracts held by the Partnership at March
31, 1996 mature through September 1996. Off-exchange-traded
forward currency contracts held at March 31, 1996 mature through
June 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 non-performance. 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 the sole counterparty,
with respect to most of the Partnership's assets, is DWR.
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 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 gains on all open futures
contracts which funds totaled $29,561,793 at March 31, 1996. 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
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
respect to those off-exchange-traded forward currency contracts,the
Partnership is at risk to the ability of DWR, the counterparty on
all of such contracts, to perform.
For the quarter ended March 31, 1996, the average fair value of
financial instruments held for trading purposes was as follows:
Assets Liabilities
$ $
Exchange-Traded Financial
Futures Contracts 23,642,000 43,102,000
Off-Exchange-Traded Forward
Currency Contracts 126,488,000 141,073,000
<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 and 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
Limited Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions.
Results of Operations
For the Quarter Ended March 31, 1996
For the quarter ended March 31, 1996, the Partnership's total
trading revenues including interest income were $892,109. During
the first quarter, the Partnership posted a gain in Net Asset Value
per Unit. The most significant trading gains were recorded in this
currency only Fund during January as the value of the Japanese yen
moved lower in relation to the U.S. dollar. As a result, the
Partnership's previously established short yen positions profited.
Significant gains were also recorded from short positions in the
Swiss franc, German mark and British pound as the value of these
<PAGE>
currencies also moved lower during the month. In February, the
previous downward move in the value of the Japanese yen and most
major European currencies failed to continue and a sharp increase
in value followed. As a result, losses were recorded from
transactions involving the Japanese yen, German mark and both Swiss
and French francs. The value of most major European currencies
continued to move slightly higher during March resulting in
additional losses for the Partnership's short European currency
positions. However, the losses recorded during March were offset
by trading gains recorded from short Japanese yen positions and
long Australian dollar positions as the value of the yen moved
lower, while the value of the Australian dollar moved higher in
relation to other world currencies. Total expenses for the period
were $554,342, generating net income of $337,767. The value of an
individual Unit in the Partnership increased from $631.29 at
December 31, 1995 to $637.39 at March 31, 1996.
For the Quarter Ended March 31, 1995
For the quarter ended March 31, 1995, the Partnership's total
trading revenues including interest income were $6,442,863. During
the first quarter, the Partnership posted a gain in Net Asset Value
per Unit. The most significant trading gains were recorded in this
currency only Fund during February and March as a result of the
increased value of major European currencies and the Japanese yen
versus the U.S. and Canadian dollars. The majority of these gains
were recorded in March from long outright positions of the Japanese
yen, German mark and Swiss franc versus the U.S. dollar and from
<PAGE>
crossrate trades of these same currencies versus the Canadian
dollar. Smaller trading losses during January from transactions
involving the U.S. dollar versus the Japanese yen offset a portion
of gains for the first quarter. Total expenses for the period were
$1,350,874, generating net income of $5,091,989. The value of an
individual Unit in the Partnership increased from $618.79 at
December 31, 1994 to $690.30 at March 31, 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)
May 7, 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>
<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> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 29,208,895
<SECURITIES> 0
<RECEIVABLES> 100,141
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 29,916,255<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 29,916,255<F2>
<SALES> 0
<TOTAL-REVENUES> 892,109<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 554,342
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 337,767
<INCOME-TAX> 0
<INCOME-CONTINUING> 337,767
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 337,767
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of (166,268) and net option premiums of $773,487.
<F2>Liabilities include redemptions payable of $544,499, accrued brokerage
commissions of $13,212, accrued management fees of $74,760, accrued
administrative expenses of $12,580 and accrued transaction fees and
costs of $760.
<F3>Total revenues includes realized trading revenue of $118,505, net change
in unrealized of $468,301 and interest income of $305,303.
</FN>
</TABLE>
