UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
[X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the period ended March 31, 1998 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. 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 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 WORLD CURRENCY FUND L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 1998
(Unaudited) and December 31, 1997.........................2
Statements of Operations for the Quarters Ended
March 31, 1998 and 1997(Unaudited)....................... 3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 1998 and 1997
(Unaudited)...............................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1998 and 1997(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 1. Legal Proceedings..................................15-16
Item 6. Exhibits and Reports on Form 8-K..................... 17
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STAEMENTS
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 29,030,547 31,327,827
Net unrealized gain on open contracts1,254,456 775,529
Net option premiums 286,550 49,687
Total Trading Equity 30,571,553 32,153,043
Interest receivable (DWR) 101,827 106,973
Total Assets 30,673,380 32,260,016
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 526,343 305,335
Accrued management fees 76,636 80,650
Accrued administrative expenses 18,856 -
Total Liabilities 621,835 385,985
Partners' Capital
Limited Partners (29,590.040 and
30,865.833 Units, respectively)28,873,288 30,674,029
General Partner (1,207.506 Units) 1,178,257 1,200,002
Total Partners' Capital 30,051,545 31,874,031
Total Liabilities and Partners' Capital 30,673,380 32,2
60,016
NET ASSET VALUE PER UNIT 975.78 993.79
<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,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (908,319) 7,226,184
Net change in unrealized 478,927 (1,330,691)
Total Trading Results (429,392) 5,895,493
Interest Income (DWR) 306,582 304,271
Total Revenues (122,810) 6,199,764
EXPENSES
Management fees 228,049
231,664
Brokerage commissions (DWR) 218,758 235,860
Administrative expenses 18,861 18,628
Transaction fees and costs 11,716 15,220
Incentive fees - 489,505
Total Expenses 477,384 990,877
NET INCOME (LOSS) (600,194) 5,208,887
NET INCOME (LOSS) ALLOCATION
Limited Partners
(578,449) 5,038,590
General Partner
(21,745) 170,297
NET INCOME (LOSS) PER UNIT
Limited Partners
(18.01) 141.03
General Partner
(18.01) 141.03
<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, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
Partners' Capital,
December 31, 1996 37,200.115 $25,668,776 $861,155
$26,529,931
Net Income - 5,038,590 170,297
5,208,887
Redemptions (1,617.738) (1,344,340) -
(1,344,340)
Partners' Capital,
March 31, 1997 35,582.377 $29,363,026 $1,031,452
$30,394,478
Partners' Capital,
December 31, 1997 32,073.339 $30,674,029 $1,200,002
$31,874,031
Net Loss - (578,449) (21,745) (600,194)
Redemptions (1,275.793) (1,222,292) -
(1,222,292)
Partners' Capital,
March 31, 1998 30,797.546 $28,873,288 $1,178,257
$30,051,545
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER WORLD CURRENCY FUND L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (600,194)
5,208,887
Noncash item included in net income (loss):
Net change in unrealized (478,927) 1
,330,691
(Increase)decrease in operating assets:
Net option premiums (236,863) 230,200
Interest receivable (DWR) 5,146 (22,149)
Due from DWR - 40,800
Increase (decrease) in operating liabilities:
Accrued management fees (4,014) 8,553
Accrued administrative expenses 18,856 18,628
Accrued incentive fees - 489,472
Accrued brokerage commissions (DWR)- (14,508)
Accrued transaction fees and costs -
(997)
Net cash provided by (used for) operating activities (1,295,996)
7,289,577
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable 221,008 (
313,465)
Redemption of units (1,222,292) (
1,344,340)
Net cash used for financing activities (1,001,284) (
1,657,805)
Net increase (decrease) in cash (2,297,280) 5
,631,772
Balance at beginning of period 31,327,827 2
5,825,801
Balance at end of period 29,030,547 3
1,457,573
<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 of Dean Witter World
Currency Fund L.P. (the "Partnership"). The financial statements
and condensed notes herein should be read in conjunction with the
Partnership's December 31, 1997 Annual Report on Form 10K.
1. Organization
Dean Witter World Currency Fund L.P. 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 ("Demeter"). The
non-clearing commodity broker is Dean Witter Reynolds Inc.
("DWR"), with an unaffiliated broker, Carr Futures, Inc.
("Carr"), providing clearing and execution services. Both Demeter
and DWR are wholly-owned subsidiaries of Morgan Stanley Dean
Witter & Co. ("MSDW"). Demeter has retained John W. Henry &
Company, Inc. ("JWH") and Millburn Ridgefield Corporation as the
trading advisors of the Partnership.
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in
commodity trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Treasury Bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
3. Financial Instruments
The Partnership trades commodity futures contracts, options
contracts and forward contracts on foreign currencies. Futures,
options 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 March 31, 1998 and December 31, 1997, open
contracts were:
Contract or Notional Amount
March 31, 1998 December 31, 1997
$ $
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 51,754,000 56,832,000
Commitments to Sell 96,913,000 114,502,000
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 net unrealized gain on open contracts is reported as a
component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition and totaled $1,254,456 and
$775,529 at March 31, 1998 and December 31, 1997, respectively.
Of the $1,254,456 net unrealized gain on open contracts at March
31, 1998, $120,368 related to exchange-traded futures contracts
and $1,134,088 related to off-exchange-traded forward currency
contracts.
Of the $775,529 net unrealized gain on open contracts at December
31, 1997, $(24,755) related to exchange-traded futures contracts
and $800,284 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1998 and December 31, 1997 mature through September
1998 and March 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at March 31, 1998 and
December 31, 1997 mature through June 1998, and March 1998,
respectively.
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
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 either DWR or Carr
acts as the futures commission merchant or the 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
and Carr, as the futures commission merchants for all of the
Partnership's exchange-traded futures and 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 options
contracts including an amount equal to the net unrealized gain on
all open futures and option contracts, which funds totaled
$29,150,915 and $31,303,072 at March 31, 1998 and December 31,
1997, 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. Carr's parent,
<PAGE>
DEAN WITTER WORLD CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Credit Agricole Indosuez, has guaranteed Carr's obligations to
the Partnership.
For the quarter ended March 31, 1998 and the year ended December
31, 1997, the average fair value of financial instruments held
for trading purposes was as follows:
March 31, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts
Options on Financial Futures 5,679,000 -
Off-Exchange-Traded Forward
Currency Contracts 127,362,000 165,398,000
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts
Financial Futures 6,501,000 19,214,000
Off-Exchange-Traded Forward
Currency Contracts 130,462,000 152,556,000
<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 Carr, the
commodity brokers, and are used by the Partnership as margin to
engage in commodity futures, forward contracts and other
commodity interest trading. DWR and Carr hold such assets in
either designated depositories or in securities approved by the
CFTC for investment of customer funds. The Partnership's assets
held by DWR and Carr may be used as margin solely for the
Partnership's trading. Since the Partnership's sole purpose is
to trade in commodity futures contracts 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 contracts,
forward contracts and other commodity interest may be illiquid.
If the price for a 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 of Limited Partnership Interest in the future will affect
the amount of funds available for investments in subsequent
periods. 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, 1998
For the quarter ended March 31, 1998, the Partnership's total
trading losses net of interest income were $122,810. During the
first quarter, the Partnership recorded a loss in Net Asset Value
per Unit. The most significant losses were recorded during
January and February as the stability of the Japanese economy
remained questionable. As a result of this instability, losses
were recorded as the value of the Japanese yen moved in a short-
term volatile pattern. A portion of those losses was offset by
gains recorded in March from short Japanese yen positions as the
<PAGE>
value of the U.S. dollar strengthened relative to the yen.
Additional losses were recorded from short South African rand
positions as its value moved higher relative to the U.S. dollar
during February and the beginning of March after showing signs of
moving lower in January. Smaller losses were recorded from
transactions involving the Australian dollar and British pound
relative to the U.S. dollar and other world currencies. A
portion of the Partnership's overall losses was offset by gains
recorded during March from short positions in most European
currencies as the value of the U.S. dollar increased relative to
the Swiss franc, German mark, and to a lesser extent, the French
franc and Spanish peseta. Total expenses for the quarter were
$477,384, resulting in a net loss of $600,194. The value of an
individual Unit in the Partnership decreased from $993.79 at
December 31, 1997 to $975.78 at March 31, 1998.
For the Quarter Ended March 31, 1997
For the quarter ended March 31, 1997, the Partnership's total
trading revenues including interest income were $6,199,764.
During the first quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant trading gains
were recorded during January as a strengthening in the value of
the U.S. dollar relative to most major world currencies emerged.
As a result, gains were recorded from short positions in the
Japanese yen, German mark and both the Swiss and French francs.
In February, a continued upward trend in the value of the U.S.
dollar resulted in additional currency gains for the
Partnership's short positions in most major European currencies,
as well as in the
<PAGE>
Japanese yen and Singapore dollar. In March, the previous upward
move in the value of the U.S. dollar failed to continue versus
major European currencies. As a result, losses were experienced
from short positions in the German mark, Swiss franc, Italian
lira and French franc. A portion of these losses was offset by
gains recorded from short positions in the Singapore dollar as
its value continued to move lower versus the U.S. dollar during
March. Total expenses for the period were $990,877, generating
net income of $5,208,887. The value of an individual Unit in the
Partnership increased from $713.17 at December 31, 1996 to
$854.20 at March 31, 1997.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997, similar
purported class actions were filed in the Superior Court of the
State of California, County of Los Angeles, on behalf of all
purchasers of interest in limited partnership commodity pools
sold by DWR. Named defendants include DWR, Demeter, Dean Witter
Futures & Currency Management Inc. ("DWFCM"), MSDW (all such
parties referred to hereafter as the "Dean Witter Parties"), the
Partnership, certain other limited partnership commodity pools of
which Demeter is the general partner, and certain trading
advisors (including JWH) to those pools. On June 16, 1997, the
plaintiffs in the above actions filed a consolidated amended
complaint, alleging, among other things, that the defendants
committed fraud, deceit, negligent misrepresentation, various
violations of the California Corporations Code, intentional and
negligent breach of fiduciary duty, fraudulent and unfair
business practices, unjust enrichment, and conversion in the sale
and operation of the various limited partnership commodity pools,
including the Partnership, sold by DWR. Similar purported class
actions were also filed on September 18 and 20, 1996, in the
Supreme Court of the State of New York, New York County, and on
November 14, 1996 in the Superior Court of the State of Delaware,
New Castle County, against the Dean Witter Parties and certain
trading advisors (including JWH) on behalf of all purchasers of
interests in various limited partnership commodity pools sold by
<PAGE>
DWR. A consolidated and amended complaint in the action pending
in the Supreme Court of the State of New York was filed on August
13, 1997, alleging that the defendants committed fraud, breach of
fiduciary duty, and negligent misrepresentation in the sale and
operation of the various limited partnership commodity pools. On
December 16, 1997, upon motion of the plaintiffs, the action
pending in the Superior Court of the State of Delaware was
voluntarily dismissed without prejudice. The complaints seek
unspecified amounts of compensatory and punitive damages and
other relief. It is possible that additional similar actions may
be filed and that, in the course of these actions, other parties
could be added as defendants. The Dean Witter Parties believe
that they and the Partnership have strong defenses to, and they
will vigorously contest, the actions. Although the ultimate
outcome of legal proceedings cannot be predicted with certainty,
it is the opinion of management of the Dean Witter Parties that
the resolution of the actions will not have a material adverse
effect on the financial condition or the results of operations of
any of the Dean Witter Parties or the Partnership.
<PAGE>
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 11, 1998 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.
