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 33-71654
DWFCM INTERNATIONAL ACCESS 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>
DWFCM INTERNATIONAL ACCESS FUND L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statement of Financial Condition
June 30, 1996 (Unaudited) and December 31, 1995............2
Statement of Operations for the Quarters Ended
June 30, 1996 and 1995 (Unaudited).........................3
Statement of Operations for the Six Months Ended
June 30, 1996 and 1995 (Unaudited).........................4
Statement of Changes in Partners' Capital
for the Six Months Ended June 30, 1996 and
1995 (Unaudited)...........................................5
Statement of Cash Flows for the Six Months Ended
June 30, 1996 and (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>
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF FINANCIAL CONDITIONS
<CAPTION>
June 30, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 43,280,951 53,843,646
Net unrealized gain (loss) on open contracts (405,053) 929,946
Total Trading Equity 42,875,898 54,773,592
Interest receivable (DWR) 149,737 197,923
Receivable from DWR - 165,458
Total Assets 43,025,635 55,136,973
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 658,121 1,058,634
Accrued management fees (DWFCM) 107,208 136,687
Accrued administrative expenses payable 88,256 147,774
Accrued brokerage commissions (DWR) 32,030 126,849
Accrued transaction fees and costs 22,209 22,110
Total Liabilities 907,824 1,492,054
Partners' Capital
Limited Partners (40,993.722 and
46,783.554 Units, respectively) 41,400,355 52,842,505
General Partner (710.409 Units) 717,456 802,414
Total Partners' Capital 42,117,811 53,664,919
Total Liabilities and Partners' Capital 43,025,635 55,136,973
NET ASSET VALUE PER UNIT 1,009.92 1,129.51
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1996 1995
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 2,071,257 16,046,280
Net change in unrealized (2,337,499) (12,669,394)
Total Trading Results (266,242) 3,376,886
Interest Income (DWR) 462,149 780,238
Total Revenues 195,907 4,157,124
EXPENSES
Brokerage commissions (DWR) 821,199 1,127,229
Management fee (DWFCM) 337,944 506,786
Transaction fees and costs 62,597 123,062
Administrative expenses 21,000 21,000
Incentive fee (DWFCM) - 239,821
Total Expenses 1,242,740 2,017,898
NET INCOME (LOSS) (1,046,833) 2,139,226
NET INCOME (LOSS) ALLOCATION
Limited Partners (1,028,585) 2,115,378
General Partner (18,248) 23,848
NET INCOME (LOSS) PER UNIT
Limited Partners (25.69) 33.57
General Partner (25.69) 33.57
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DWFCM INTERNATIONAL ACCESS 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 (2,224,706) 21,818,459
Net change in unrealized (1,334,999) (1,402,334)
Total Trading Results (3,559,705) 20,416,125
Interest Income (DWR) 960,131 1,438,805
Total Revenues (2,599,574) 21,854,930
EXPENSES
Brokerage commissions (DWR) 1,946,447 2,518,731
Management fee (DWFCM) 713,028 972,037
Transaction fees and costs 135,925 205,763
Administrative expenses 43,000 38,000
Incentive fee (DWFCM) - 1,163,772
Total Expenses 2,838,400 4,898,303
NET INCOME (LOSS) (5,437,974) 16,956,627
NET INCOME (LOSS) ALLOCATION
Limited Partners (5,353,016) 16,767,756
General Partner (84,958) 188,871
NET INCOME (LOSS) PER UNIT
Limited Partners (119.59) 265.86
General Partner (119.59) 265.86
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 1996 and 1995
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1994 65,135.840 $59,707,586 $658,386 $60,365,972
Net Income - 16,767,756 188,871 16,956,627
Redemptions (13,352.028) (15,563,545) - (15,563,545)
Partners' Capital
June 30, 1995 51,783.812 $60,911,797 $847,257 $61,759,054
Partners' Capital
December 31, 1995 47,493.963 $52,842,505 $802,414 $53,644,919
Net Loss - (5,353,016) (84,958) (5,437,974)
Redemptions (5,789.832) (6,089,134) - (6,089,134)
Partners' Capital
June 30, 1996 41,704.131 $41,400,355 $717,456 $42,117,811
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
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) (5,437,974) 16,956,627
Noncash item included in net income (loss):
Net change in unrealized 1,334,999 1,402,334
(Increase) decrease in operating assets:
Interest receivable (DWR) 48,186 (10,231)
Receivable from DWR 165,458 178,370
Increase (decrease) in operating liabilities:
Accrued management fees (DWFCM) (29,479) 4,085
Accrued administrative expenses payable (59,518) 23,774
Accrued brokerage commissions (DWR) (94,819) 25,861
Accrued transaction fees and costs 99 19,261
Accrued incentive fees (DWFCM) - 212,239
Net cash provided by (used for) operating activities (4,073,048) 18,812,320
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (400,513) (153,979)
Redemptions of units (6,089,134) (15,563,545)
Net cash used for financing activities (6,489,647) (15,717,524)
Net increase (decrease) in cash (10,562,695) 3,094,796
Balance at beginning of period 53,843,646 56,516,639
Balance at end of period 43,280,951 59,611,435
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DWFCM INTERNATIONAL ACCESS 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 1995 Annual Report on Form 10-K.
1. Organization
DWFCM International Access Fund L.P. (the "Partnership") was
organized to engage in speculative trading of futures contracts and
forward contracts, and options on futures contracts and physical
commodities, and other commodity interests. The General Partner
for the Partnership is Demeter Management Corporation (the "General
Partner"). The commodity broker is Dean Witter Reynolds Inc.
("DWR"). The Trading Manager who makes all trading decisions for
the Partnership is Dean Witter Futures and Currency Management,
Inc. (DWFCM"), an affiliate of DWR. The General Partner, DWFCM and
DWR are all 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.
Management and incentive fees incurred by the Partnership are paid
to DWFCM.
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities, currencies, petroleum and
precious metals. 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 2,799,000
Commitments to Sell 6,346,000
Commodity Futures:
Commitments to Purchase 2,741,000
Commitments to Sell 5,451,000
Foreign Futures:
Commitments to Purchase 65,401,000
Commitments to Sell 73,663,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 240,249,000
Commitments to Sell 237,864,000
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>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $405,053 at June 30, 1996. Of this
amount, $114,308 related to exchange-traded futures contracts and
($519,361) related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1996 mature through March 1997. Off-exchange-traded forward
currency contracts held by the Partnership at June 30, 1996 mature
through August 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
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
contracts, is required pursuant to regulations of the Commodity
Futures Trading Commission to segregate from its own assets and for
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
the sole benefit of its commodity customers all funds held by DWR
with respect to exchange-traded futures contracts including an
amount equal to the net unrealized gain on all open futures
contracts which funds totaled $43,395,259 at June 30, 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
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 41,204,000 29,172,000
Commodity Futures 7,157,000 4,271,000
Foreign Futures 109,980,000 48,946,000
Off-Exchange-Traded Forward
Currency Contracts 279,243,000 288,376,000
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 currency. 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 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 $195,907. During
the second quarter, the Partnership posted a decrease in Net Asset
Value per Unit. Trading gains during the quarter were offset by
brokerage commissions resulting in net trading losses. The most
significant trading losses were recorded in the financial futures
markets as trendless price movement was experienced throughout the
quarter in non-U.S. interest rate futures, particularly in
Australian, Japanese and European interest rate futures. Trading
gains recorded during April and May from short U.S. interest rate
<PAGE>
futures positions, as prices in these markets moved lower, offset
a portion of the losses. Additional losses for the partnership
were recorded in global stock index futures as prices moved without
consistent direction throughout the quarter. In soft commodities,
losses were experienced from short-term volatile movement in coffee
futures prices during April and June, as well as from losses in
cocoa futures during June. In currency trading, gains were
recorded during April from short German mark and Swiss franc
positions as the value of the German mark and Swiss franc moved
lower relative to the U.S. dollar and other world currencies.
Smaller trading gains were recorded by the Partnership during May
from long Australian dollar positions as the value of the
Australian dollar moved higher relative to other world currencies.
Additional gains were recorded in metals from short copper,
aluminum, gold and silver futures positions as prices moved lower
during June. Smaller gains were recorded in the energy markets as
gains in natural gas futures more than offset losses in other gas
and oil products. Total expenses for the quarter were $1,242,740,
resulting in a net loss of $1,046,833. The value of an individual
Unit in the Partnership decreased from $1,035.61 at March 1996 to
$1,009.92 at June 30, 1996.
For the six months ended June 30, 1996, the Partnership's total
trading losses net of interest income were $2,599,574. During the
first half of the year, the Partnership posted a decrease in Net
Asset Value per Unit primarily as a result of a sudden and sharp
trend reversal during February in the previous downward move in the
value of the Japanese yen and most major European currencies, which
<PAGE>
had resulted in gains during January. Trading gains recorded
during March from transactions involving the Australian dollar and
Japanese yen offset a portion of the overall losses experienced in
the currency markets during February. Additionally, trendless
price movement in global interest rate futures trading during the
second quarter, resulted in losses for the Partnership. In energy
trading, gains in natural gas futures during June, as well as in
crude oil futures during March, offset a portion of overall losses
for the first half of the year. Trading gains in metals during
June more than offset losses experienced in base metals during the
first quarter of the year. Short-term volatile price movement in
soft commodities from trading coffee and cocoa futures resulted in
losses for the Partnership during a majority of the first half of
the year. Total expenses for the period were $2,838,400, resulting
in a net loss of $5,437,974. The value of an individual Unit in
the Partnership decreased from $1,129.51 at December 31, 1995 to
$1,009.92 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 revenues including interest income were $4,157,124. During
the second quarter, the Partnership posted an increase in Net Asset
Value per Unit. The majority of these gains were the result of an
upward trend in global interest rate futures that began in the
first quarter and continued into April. These gains were recorded
from previously established long positions in the Japanese bond,
Australian bond and U.S. interest rate futures. Additional gains
were recorded in European interest rate and global stock index
<PAGE>
futures. Smaller gains were recorded from trading coffee and cocoa
futures during the second quarter. Trading losses in the currency
markets in May and June from transactions involving most European
currencies and the Canadian dollar helped in offsetting a portion
of the Partnership's gains for the quarter. Additional losses were
recorded in the metals markets throughout the quarter and in the
energy markets in May. Total expenses for the period were
$2,017,898, resulting in net income of $2,139,226. The value of an
individual Unit in the Partnership increased from $1,159.06 at
March 31, 1995 to $1,192.63 at June 30, 1995.
For the six months ended June 30, 1995, the Partnership's total
trading revenues including interest income were $21,854,930.
During the first six months, the Partnership posted an increase in
Net Asset Value per Unit. The most significant gains were recorded
during February, March, April and May in the financial markets as
a result of trading Japanese, U.S. and Australian interest rate
futures and global stock index futures during these months.
Additional gains were recorded in the currency markets during the
first quarter. The majority of these gains were the result of
transactions involving the Japanese yen and most European
currencies. Smaller trading gains were recorded in soft
commodities as a result of trading coffee during the second
quarter. Trading losses in the metals and energy markets offset a
portion of overall gains for first half of the year. Total
expenses for the period were $4,898,303, resulting in net income of
$16,956,627. The value of an individual Unit in the Partnership
increased from $926.77 at December 31, 1994 to $1,192.63 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.
DWFCM International Access Fund L.P.
(Registrant)
By: Demeter Management Corporation
(General Partner)
August 13, 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
DWFCM International Access Fund L.P. and is qualified in its entirety
by reference to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 44,786,826
<SECURITIES> 0
<RECEIVABLES> 149,737
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 43,025,635<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 43,025,635<F2>
<SALES> 0
<TOTAL-REVENUES> (2,559,574)<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,838,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5,437,974)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,437,974)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,437,974)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $(405,053).
<F2>Liabilities include redemptions payable of $658,121, accrued brokerage
commissions of $32,030, accrued management fees of $107,208, accrued
administrative expenses payable of $88,256 and accrued transaction fees
and costs of $22,209.
<F3>Total revenues includes realized trading revenue of $(2,224,706), net
change in unrealized of $(1,334,999) and interest income of $960,131.
</FN>
</TABLE>
