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 33-71654
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
March 31, 1996
<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)................. 6-9
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations............................................10-13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................... 14
</TABLE>
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<TABLE>
DWFCM INTERNATIONAL ACCESS 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 44,786,826 53,843,646
Net unrealized gain on open contracts 1,932,446 929,946
Total Trading Equity 46,719,272 54,773,592
Interest receivable (DWR) 157,635 197,923
Receivable from DWR 28,818 165,458
Total Assets 46,905,725 55,136,973
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 680,807 1,058,634
Accrued management fee (DWFCM) 116,860 136,687
Accrued administrative expenses payable 83,655 147,774
Accrued brokerage commissions (DWR) 40,464 126,849
Accrued transaction fees and costs 8,917 22,110
Total Liabilities 930,703 1,492,054
Partners' Capital
Limited Partners (43,683.933 and
46,783.554 Units, respectively) 45,239,319 52,842,505
General Partner (710.409 Units) 735,703 802,414
Total Partners' Capital 45,975,022 53,664,919
Total Liabilities and Partners' Capital 46,905,725 55,136,973
NET ASSET VALUE PER UNIT 1,035.61 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 March 31,
1996 1995
$ $
<S> <C> <C>
REVENUES
Trading profit (loss):
Realized (4,295,963) 5,772,178
Net change in unrealized 1,002,500 11,267,060
Total Trading Results (3,293,463) 17,039,238
Interest Income (DWR) 497,982 658,568
Total Revenues (2,795,481) 17,697,806
EXPENSES
Brokerage commissions (DWR) 1,125,248 1,391,503
Management fee (DWFCM) 375,083 465,252
Transaction fees and costs 73,330 82,700
Administrative expenses 22,000 17,000
Incentive fee (DWFCM) - 923,950
Total Expenses 1,595,661 2,880,405
NET INCOME (LOSS) (4,391,142) 14,817,401
NET INCOME (LOSS) ALLOCATION
Limited Partners (4,324,431) 14,652,378
General Partner (66,711) 165,023
NET INCOME (LOSS) PER UNIT
Limited Partners (93.90) 232.29
General Partner (93.90) 232.29
<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 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 65,135.840 $59,707,586 $ 658,386 $60,365,972
Net Income - 14,652,378 165,023 14,817,401
Redemptions (6,618.998) (7,358,630) - (7,358,630)
Partners' Capital
March 31, 1995 58,516.842 $67,001,334 $823,409 $67,824,743
Partners' Capital
December 31, 1995 47,493.963 $ 52,842,505 $ 802,414 $ 53,644,919
Net Loss - (4,324,431) (66,711) (4,391,142)
Redemptions (3,099.621) (3,278,755) (3,278,755)
Partners' Capital
March 31, 1996 44,394.342 $45,239,319 $735,703 $45,975,022
<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 Quarters Ended March 31,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (4,391,142) 14,817,401
Noncash item included in net income:
Net change in unrealized (1,002,500) (11,267,060)
(Increase) decrease in operating assets:
Interest receivable (DWR) 40,288 (4,089)
Receivable from DWR 136,640 35,022
Increase (decrease) in operating liabilities:
Accrued management fee (DWFCM) (19,827) 35,686
Accrued administrative expenses payable (64,119) 17,000
Accrued brokerage commissions (DWR) (86,385) 82,965
Accrued transaction fees and costs (13,193) 28,486
Accrued incentive fees (DWFCM) - 923,950
Net cash provided by (used for) operating activities (5,400,238) 4,669,361
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable (377,827) 5,820,839
Redemptions of units (3,278,755) (7,358,630)
Net cash used for financing activities (3,656,582) (1,537,791)
Net increase (decrease) in cash (9,056,820) 3,131,570
Balance at beginning of period 53,843,646 56,516,639
Balance at end of period 44,786,826 59,648,209
<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 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 is Dean Witter Futures & Currency
Management Inc. ("DWFCM"). 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 March 31, 1996 open contracts were:
Contract or
Notional Amount
$
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 3,241,000
Commitments to Sell 44,304,000
Commodity Futures Contracts
Commitments to Purchase 5,886,000
Foreign Futures:
Commitments to Purchase 9,682,000
Commitments to Sell 55,131,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 229,641,000
Commitments to Sell 206,348,000
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 gain on open contracts is reported as a component of
"Equity in Commodity futures trading accounts" on the Statement of
Financial Condition and totaled $1,932,446 at March 31, 1996. Of
this amount, $1,420,529 related to exchange-traded futures
contracts and $511,917 related to off-exchange-traded forward
currency contracts.
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
May 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.
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
The Partnership also has credit risk because the sole counterparty,
with respect to most of the Partnership's assets, is DWR.
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 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 $46,207,355 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 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 Contracts:
Financial Futures 60,439,000 31,253,000
Commodity Futures 9,774,000 3,330,000
Foreign Futures 128,461,000 45,480,000
Off-Exchange-Traded Forward
Currency Contracts 303,642,000 314,813,000
<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, 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 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 losses net of interest income were $2,795,481. During the
first quarter, the Partnership posted a decrease in Net Asset Value
per Unit. The most significant trading losses were recorded in the
energy markets. In January, losses were experienced from long oil
and gas futures positions as energy prices reversed from a previous
upward move. Losses experienced in February as oil as gas prices
moved in a short-term volatile pattern were mitigated in March as
oil prices moved higher and long positions in crude, gas and
heating oil futures profited. Additional trading losses were
<PAGE>
recorded in the currency markets as a reversal in the downward move
of the Japanese yen and most European currencies during February
resulted in losses for previously established short Japanese yen,
German mark and Swiss franc positions. However, these losses were
partially offset by gains experienced in January from short
Japanese yen and European currency positions and in March from long
Australian dollar positions. In the financial futures markets,
losses were recorded in February as a result of a dramatic reversal
in the previous upward move in global interest rate futures prices.
These losses more than offset gains experienced in January from
long global interest rate and stock index futures positions as
prices trended higher. Smaller losses were recorded in the soft
commodities and metals markets as prices were trendless throughout
the quarter. Total expenses for the quarter were $1,595,661,
resulting in a net loss of $4,391,142. The value of an individual
Unit in the Partnership decreased from $1,129.51 at December 31,
1995 to $1,035.61 at March 31, 1996.
Results of Operations
For the Quarter Ended March 31, 1995
For the quarter ended March 31, 1995, the Partnership's total
trading revenues including interest income were $17,697,806.
During the first quarter, the Partnership posted an increase in Net
Asset Value per Unit. The most significant gains were recorded
during February and March in the currency markets as a result of a
decrease in value of the U.S. dollar versus the Japanese yen and
major European currencies such as the Swiss franc, German mark and
<PAGE>
French franc. Additional gains were recorded in the financial
markets as a result of trading Japanese and U.S. interest rate
futures and global stock index futures during the quarter. Smaller
trading losses in the agricultural, metals, energy and inter-
national markets offset a portion of overall gains for the quarter.
Total expenses for the period were $2,880,405, generating net
income of $14,817,401. The value of an individual Unit in the
Partnership increased from $926.77 at December 31, 1994 to
$1,159.06 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.
DWFCM International Access 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 DWFCM
International Access Fund L.P. and is qualified in its entirety by
reference to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 44,786,826
<SECURITIES> 0
<RECEIVABLES> 186,453<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 46,905,725<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 46,905,725<F3>
<SALES> 0
<TOTAL-REVENUES> (2,795,481)<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,595,661
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,391,142)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,391,142)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,391,142)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable of $157,635 and receivable from
DWR of $28,818.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $1,932,446.
<F3>Liabilities include redemptions payable of $680,807, accrued brokerage
commissions of $40,464, accrued management fees of $116,860, accrued
administrative expenses payable of $83,655 and accrued transaction fees
and costs of $8,917.
<F4>Total revenues includes realized trading revenue of $(4,295,963), net
change in unrealized of $1,002,500 and interest income of $497,982.
</FN>
</TABLE>
