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 quarterly period ended September 30, 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. 0-26282
DWFCM INTERNATIONAL ACCESS FUND L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3775071
(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>
DWFCM INTERNATIONAL ACCESS FUND L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
September 30, 1998 (Unaudited) and December 31, 1997....2
Statements of Operations for the Quarters Ended
September 30, 1998 and 1997 (Unaudited).................3
Statements of Operations for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited).................4
Statements of Changes in Partners' Capital
for the Nine Months Ended September 30, 1998 and
1997 (Unaudited)........................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited).................6
Notes to Financial Statements (Unaudited)............7-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations....12-20
Part II. OTHER INFORMATION
Item 1. Legal Proceedings...................................21
Item 6. Exhibits and Reports on Form 8-K....................21
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 44,114,868 43,146,223
Net unrealized gain on open contracts 4,226,706 5,689,588
Total Trading Equity 48,341,574 48,835,811
Interest receivable (DWR) 146,165 155,295
Total Assets 48,487,739 48,991,106
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 951,112 343,450
Incentive fee payable (DWFCM) 284,832 437,418
Accrued management fee (DWFCM) 120,933 122,264
Accrued administrative expenses 114,385 85,345
Total Liabilities 1,471,262 988,477
Partners' Capital
Limited Partners (29,468.198 and
31,675.130 Units, respectively) 46,487,355 46,949,644
General Partner (335.409 and
710.409 Units, respectively) 529,122 1,052,985
Total Partners' Capital 47,016,477 48,002,629
Total Liabilities and Partners' Capital 48,487,739 48,991,106
NET ASSET VALUE PER UNIT 1,577.54 1,482.22
<FN>
The accompanying notes 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 September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit:
Realized 5,366,467 4,758,197
Net change in unrealized 619,871 3,254,964
Total Trading Results 5,986,338 8,013,161
Interest Income (DWR) 437,487 473,538
Total Revenues 6,423,825 8,486,699
EXPENSES
Brokerage commissions (DWR) 626,148 694,148
Management fee (DWFCM) 344,505 351,443
Incentive fee (DWFCM) 284,832 571,474
Transaction fees and costs 40,481 44,535
Administrative expenses 18,000 24,000
Total Expenses 1,313,966 1,685,600
NET INCOME 5,109,859 6,801,099
NET INCOME ALLOCATION
Limited Partners 4,990,748 6,660,992
General Partner 119,111 140,107
NET INCOME PER UNIT
Limited Partners
167.66 197.22
General Partner
167.66 197.22
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 6,227,482 8,445,844
Net change in unrealized (1,462,882) 2,048,044
Total Trading Results 4,764,600 10,493,888
Interest Income (DWR) 1,330,004 1,397,914
Total Revenues 6,094,604 11,891,802
EXPENSES
Brokerage commissions (DWR) 1,842,618 2,342,222
Management fees (DWFCM) 1,017,715 1,044,154
Incentive fee (DWFCM) 284,832 571,475
Transaction fees and costs 128,818 141,028
Administrative expenses 56,000 72,000
Total Expenses 3,329,983 4,170,879
NET INCOME 2,764,621 7,720,923
NET INCOME ALLOCATION
Limited Partners 2,696,906 7,565,738
General Partner 67,715 155,185
NET INCOME PER UNIT
Limited Partners
95.32 218.45
General Partner
95.32 218.45
<FN>
The accompanying notes 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 Nine Months Ended September 30, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
Partners' Capital
December 31, 1996 38,144.001 $43,960,184 $834,270
$44,794,454
Net Income - 7,565,738 155,185
7,720,923
Redemptions (5,007.203) (6,362,577) -
(6,362,577)
Partners' Capital
September 30, 1997 33,136.798 $45,163,345 $989,455
$46,152,800
Partners' Capital
December 31, 1997 32,385.539 $46,949,644 $1,052,985
$48,002,629
Net Income - 2,696,906 67,715
2,764,621
Redemptions (2,581.932) (3,159,195) (591,578)
(3,750,773)
Partners' Capital
September 30, 1998 29,803.607 $46,487,355 $529,122
$47,016,477
<FN>
The accompanying notes 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 Nine Months Ended September 30,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income 2,764,621 7
,720,923
Noncash item included in net income:
Net change in unrealized 1,462,882 (
2,048,044)
Decrease in operating assets:
Interest receivable (DWR) 9,130 1,761
Due from DWR - 38,526
Increase (decrease) in operating liabilities:
Incentive fee payable (DWFCM) (152,586) 571,475
Accrued management fee (DWFCM) (1,331) 4,047
Accrued administrative expenses 29,040 23,539
Accrued brokerage commissions (DWR)- 17,477
Accrued transaction fees and costs -
(7,773)
Net cash provided by operating activities 4,111,756 6
,321,931
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable607,662 (
353,567)
Redemptions of units (3,750,773) (
6,362,577)
Net cash used for financing activities (3,143,111) (
6,716,144)
Net increase (decrease) in cash 968,645 (
394,213)
Balance at beginning of period 43,146,223 4
4,917,336
Balance at end of period 44,114,868 4
4,523,123
<FN>
The accompanying notes 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 of DWFCM International
Access 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 10-K.
1. Organization
DWFCM International Access Fund L.P. is a limited partnership
organized to engage in speculative trading of futures contracts
and forward contracts, options on futures contracts and physical
commodities, and other commodity interests (collectively,
"futures interests"). The general partner is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker is
Dean Witter Reynolds Inc. ("DWR"), an affiliate of Demeter. The
clearing commodity broker is Carr Futures Inc. ("Carr"),
providing clearing and execution services. Dean Witter Futures &
Currency Management, Inc. ("DWFCM" or the "Trading Manager"),
also an affiliate of Demeter, is the sole trading manager for the
Partnership. Demeter, DWR and DWFCM are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. ("MSDW").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interest trading accounts to meet margin requirements as needed.
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 (when
applicable) are paid to DWFCM.
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities and 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 September 30, 1998 and December 31, 1997
open contracts were:
Contract or Notional Amount
September 30, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 112,774,000 18,689,000
Commitments to Sell 2,304,000 -
Commodity Futures:
Commitments to Purchase 5,952,000 1,916,000
Commitments to Sell - 15,338,000
Foreign Futures:
Commitments to Purchase 266,825,000 53,487,000
Commitments to Sell 15,926,000 20,289,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 247,149,000 109,180,000
Commitments to Sell 167,086,000 205,569,000
<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 net unrealized gains on open contracts are reported as a
component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition and totaled $4,226,706 and
$5,689,588 at September 30, 1998 and December 31, 1997,
respectively.
Of the $4,226,706 net unrealized gain on open contracts at
September 30, 1998, $5,018,383 related to exchange-traded futures
contracts and $(791,677) related to off-exchange-traded forward
currency contracts.
Of the $5,689,588 net unrealized gain on open contracts at
December 31, 1997, $995,339 related to exchange-traded futures
contracts and $4,694,249 related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1998 and December 31, 1997 mature through March
1999 and March 1998, respectively. Off-exchange-traded forward
currency contracts held at September 30, 1998 and December 31,
1997 mature
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
through December 1998 and April 1998, respectively.
The contract amounts in the above table represent the
Partnership's extent of involvement in a 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 DWR and Carr act as
the futures commission merchants or the counterparties, 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. Each of DWR and
Carr, as a futures commission merchant for the Partnership's
exchange-traded futures 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 contracts, including an amount equal to
the net unrealized gain on all open futures contracts, which
funds, in the aggregate, totaled $49,133,251 and $44,141,562 at
September 30, 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
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 such contracts, to perform. Carr's parent,
Credit Agricole Indosuez, has guaranteed to the Partnership
payment of the net liquidating value of the Partnership's account
with Carr (including foreign currency contracts).
For the nine months ended September 30, 1998 and the year ended
December 31, 1997, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 36,470,000 12,005,000
Commodity Futures 1,554,000 7,927,000
Foreign Futures 84,552,000 33,800,000
Off-Exchange-Traded Forward
Currency Contracts 206,320,000 224,389,000
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 18,852,000 25,164,000
Commodity Futures 3,726,000 9,818,000
Foreign Futures 65,551,000 41,413,000
Off-Exchange-Traded Forward
Currency Contracts 156,224,000 189,458,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - Assets of the Partnership are deposited with DWR as
non-clearing broker and Carr as clearing broker in separate
futures interest trading accounts established for the Trading
Manager and are used by the Partnership as margin to engage in
futures interest trading. Such assets are held in either non-
interest bearing bank accounts 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 futures interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investment in futures interests may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits." Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price for a particular futures interest
has increased or decreased by an amount equal to the daily limit,
positions in such futures interest can neither be taken nor
liquidated unless traders are willing to effect trades at or
within the limit. Futures interest prices have occasionally
moved the daily limit for several consecutive days with little or
no trading. Such market conditions could prevent the Partnership
<PAGE>
from promptly liquidating its futures interests and result in
restrictions on redemptions.
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. Future redemptions
of Units of Limited Partnership Interest will affect the
amount of funds available for investment in futures
interests in subsequent periods. Since they 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 and Nine Months Ended September 30, 1998
For the quarter ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$6,423,825 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in the financial futures
markets throughout a majority of the quarter as investors sought
the
<PAGE>
safety of fixed income investments in response to anticipated
interest rate cuts by the U. S. Federal Reserve and significant
volatility in the global financial markets. During August and
September, gains were recorded from long U.S., European and
Japanese bond futures positions as bond prices rallied while
global stock prices plunged, especially after Russia's decision
to halt trading in foreign currencies paralyzed the country's
banking system and set off a flight in to the safest investments.
These gains were partially offset by losses recorded in the
currency markets during July and August from long British pound
positions as the value of the British pound moved lower in
response to uncertainty about economic developments and interest
rate policy in that country. As a result, these losses offset
gains recorded during September from long German mark positions
as the value of the U.S. dollar weakened versus other currencies.
Smaller losses were recorded in the metals markets from short
aluminum and copper futures positions as base metals prices
reversed higher earlier in the quarter. Total expenses for the
three months ended September 30, 1998 were $1,313,966, resulting
in net income of $5,109,859. The value of an individual Unit in
the Partnership increased from $1,409.88 at June 30, 1998 to
$1,577.54 at September 30, 1998.
For the nine months ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$6,094,604 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in the financial futures
markets during the first and third quarters from long European
interest rate futures positions as prices trended higher in a
<PAGE>
flight to quality. Additional profits were recorded from long
positions in U.S. and Japanese bond futures as prices in these
markets also trended higher during the third quarter. A portion
of these gains was offset by losses in the metals and currency
markets. In metals, losses were recorded during the first
quarter from long silver futures positions as silver prices
reversed lower in late February after rallying higher during
January. During the third quarter, additional losses were
recorded from short silver futures positions as precious metals
prices moved higher due to uncertainty in global stock markets
and in the wake of reported difficulties with several major hedge
funds. Smaller losses were also recorded in the metals markets
from short aluminum and copper futures positions as base metals
prices reversed higher in early July. In currency trading,
losses were recorded from transactions involving the British
pound as its value moved without consistent direction during the
first nine months of the year. Additional currency losses were
recorded during the first quarter due primarily to short-term
volatility caused by the economic instability in the Far East.
During January, the upward trend in the value of the U.S. dollar
reversed lower in response to the Japanese government's proposed
economic stimulus package, thus resulting in losses for
previously established short Japanese yen positions. Additional
currency losses were recorded in February as the value of the yen
moved without consistent direction. Total expenses for the nine
months ended September 30, 1998 were $3,329,983, resulting in net
income of $2,764,621. The value of an individual Unit in the
Partnership increased from $1,482.22 at December 31, 1997 to
$1,577.54 at September 30, 1998.
<PAGE>
For the Quarter and Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership
recorded total trading revenues including interest income of
$8,486,699 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in financial futures due
primarily to an upward trend in global interest rate futures
prices during July and September. Smaller profits were recorded
in global stock index futures from short Nikkei Index futures and
long Financial Times Index positions during the quarter. In the
currency markets, gains were recorded during July from short
German mark positions as the value of the U.S. dollar increased
versus the German mark. During August, the value of the German
mark increased versus the U.S. dollar, resulting in losses for
the Partnership. This upward price move resulted in new long
German mark positions, which profited during September.
Additional currency gains were recorded from transactions
involving the Malaysian ringgit, Australian dollar and Swedish
krona. In metals, gains were recorded from long zinc futures
during July and long silver futures positions during September.
Gains were also recorded from short copper futures positions
during August and September. Trading losses in aluminum futures
during August offset a portion of these gains. In the energy
markets, gains recorded from long natural gas positions as prices
increased during August and September offset losses from trading
heating oil futures during September. In soft commodities, losses
were recorded from long cocoa futures positions as prices moved
lower during July. Total expenses for the three months ended
September 30, 1997 were $1,685,600, resulting in net income of
<PAGE>
$6,801,099. The value of an individual Unit in the Partnership
increased from $1,195.58 at June 30, 1997 to $1,392.80 at
September 30, 1997.
For the nine months ended September 30, 1997, the Partnership
recorded total trading revenues including interest income of
$11,891,802 and posted an increase in Net Asset Value per Unit.
The most significant trading gains were recorded in the currency
markets as a result of a strengthening in the value of the U.S.
dollar relative to most major currencies during the period
January through April. Additional currency gains were recorded
during the third quarter from transactions involving the German
mark, Malaysian ringgit, Australian dollar and Swedish krona. A
portion of these gains was offset by losses from transactions
involving the British pound and Canadian dollar during February,
March and May. In financial futures, trading gains were recorded
from short Nikkei and long Financial Times Index positions during
the third quarter. In global interest rate futures, trading
gains recorded from an upward price trend in global interest rate
futures during July and September more than offset the losses
experienced as a result of short-term price volatility during the
first four months of the year. In metals, gains experienced
from long zinc futures positions in July and long silver futures
positions in September more than offset losses recorded as base
metals futures prices traded in a narrow range during the second
quarter. A portion of the Partnership's overall gains for the
first nine months of the year was offset by losses from trading
energy futures as oil and gas prices moved without consistent
<PAGE>
direction for a majority of the year. One exception in the
energy complex was natural gas futures prices, which increased
during the third quarter thus resulting in gains from long
positions. In soft commodities, losses recorded from trading
cocoa futures during the third quarter offset profits recorded
during the first half of the year from long coffee futures
positions. Total expenses for the nine months ended September
30, 1997 were $4,170,879, resulting in net income of $7,720,923.
The value of an individual Unit in the Partnership increased from
$1,174.35 at December 31, 1996 to $1,392.80 at September 30,
1997.
Year 2000 Problem - Commodity pools, like financial and business
organizations and individuals around the world, depend on the
smooth functioning of computer systems. Many computer systems in
use today cannot recognize the computer code for the year 2000,
but revert to 1900 or some other date. This is commonly known as
the "Year 2000 Problem". The Partnership could be adversely
affected if computer systems used by it or any third party with
whom it has a material relationship do not properly process and
calculate date-related information and data concerning dates on
or after January 1, 2000. Such a failure could have a negative
impact on the handling or determination of futures trades and
prices and the services provided the Partnership.
MSDW began its planning in response to the Year 2000 Problem in
1995 and currently has several hundred employees working on such
response. It has developed its own Year 2000 compliance plan to
deal with the problem and had the plan approved by the company's
<PAGE>
executive management, Board of Directors and Information
Technology Department. Demeter is coordinating with MSDW in
taking steps that both believe are reasonably designed to address
the Year 2000 Problem with respect to Demeter's computer systems
that relate to the Partnership. This includes hardware and
software upgrades, systems consulting and computer maintenance.
Beyond the challenge facing internal computer systems, the
systems failure of any of the third parties with whom the
Partnership has a material relationship - the futures exchanges
and clearing organizations through which it trades, Carr, or the
Trading Manager - could result in a material financial risk to
the Partnership. Regarding the futures exchanges, all U.S.
futures exchanges will be subject to the monitoring of the CFTC
for their Year 2000 preparedness and the major foreign futures
exchanges are also expected to be subject to market-wide testing
of their Year 2000 compliance during 1999. With respect to Carr
and the Trading Manager, Demeter intends to monitor their
progress throughout 1999 in their Year 2000 compliance and, where
applicable, to test its external interface with Carr and the
Trading Manager.
Finally, MSDW has begun developing various "contingency plans" in
the event that the systems of such third parties fail, and
Demeter intends to consult closely with MSDW in implementing
those plans. MSDW has also recently reported that its
development of such contingency plans is proceeding on schedule.
Despite the best efforts of both Demeter and MSDW, however,
<PAGE>
there can be no assurance that the above steps will be sufficient
to avoid any adverse impact to the Partnership, whether from
failures in their own computer systems or those of Carr, the
Trading Manager or any other third party.
Risks Associated with the Euro - On January 1, 1999, eleven
countries in the European Union intend to establish fixed
conversion rates on their existing sovereign currencies and
convert to a common single currency (the "euro"). During a three-
year transition period, the existing sovereign currencies will
continue to exist but only as a fixed denomination of the euro.
Conversion to the euro will prevent the Trading Manager from
trading in certain currencies and thereby limit its ability to
take advantage of potential market opportunities that might
otherwise have existed had separate currencies been available to
trade, and could result in losses with respect to those
positions.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Previously reported. See Form 10-Q for the quarter ended March
31, 1998.
Item 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K. - No reports have been filed for the quarter
ended September 30, 1998.
<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)
November 13, 1998 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
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.
<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 statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 44,114,868
<SECURITIES> 0
<RECEIVABLES> 146,165<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 48,487,739<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 48,487,739<F3>
<SALES> 0
<TOTAL-REVENUES> 6,094,604<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,329,983
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,764,621
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,764,621
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,764,621
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable of $146,165.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $4,226,706.
<F3>Liabilities include redemptions payable of $951,112, accrued
management fee of $120,933, incentive fee payable of $284,832, and
accrued administrative expenses of $114,385.
<F4>Total revenue includes realized trading revenue of $6,227,482, net
change in unrealized of $(1,462,882) and interest income of $1,330,004.
</FN>
</TABLE>
