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, 1999 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
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<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1999
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
September 30, 1999 (Unaudited) and December 31, 1998 .....2
Statements of Operations for the Quarters Ended
September 30, 1999 and 1998 (Unaudited)...................3
Statements of Operations for the Nine Months Ended
September 30, 1999 and 1998 (Unaudited)...................4
Statements of Changes in Partners' Capital
for the Nine Months Ended September 30, 1999 and
1998 (Unaudited)..........................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1999 and 1998 (Unaudited)...................6
Notes to Financial Statements (Unaudited)..............7-
11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations......12-21
Item 3. Quantitative and Qualitative Disclosures about
Market Risk ...................................... 22-33
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.................................... 34
Item 6. Exhibits and Reports on Form 8-K..................... 34
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1999 1998
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 38,727,297 46,211,886
Net unrealized gain (loss) on open contracts 1,099,132
(446,189)
Total Trading Equity 39,826,429 45,765,697
Interest receivable (DWR) 122,855 138,824
Total Assets 39,949,284 45,904,521
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 406,709 239,917
Accrued management fees (DWFCM) 99,635 114,567
Accrued administrative expenses 95,438 77,869
Total Liabilities 601,782 432,353
Partners' Capital
Limited Partners (25,999.467 and
28,862.490 Units, respectively) 38,846,360 44,949,810
General Partner (335.409 Units) 501,142 522,358
Total Partners' Capital 39,347,502 45,472,168
Total Liabilities and Partners' Capital 39,949,284 45,
904,521
NET ASSET VALUE PER UNIT 1,494.12 1,557.38
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit:
Realized 1,814,621 5,366,467
Net change in unrealized 543,643 619,871
Total Trading Results 2,358,264 5,986,338
Interest Income (DWR) 376,284 437,487
Total Revenues 2,734,548 6,423,825
EXPENSES
Brokerage commissions (DWR) 576,658 626,148
Management fees (DWFCM) 299,346 344,505
Transaction fees and costs 36,198 40,481
Administrative expenses 18,000 18,000
Incentive fee (DWFCM) - 284,832
Total Expenses 930,202 1,313,966
NET INCOME 1,804,346 5,109,859
NET INCOME ALLOCATION
Limited Partners 1,782,045
4,990,748 General Partner
22,301 119,111
NET INCOME PER UNIT
Limited Partners 66.49
167.66 General Partner
66.49 167.66
<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,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (1,836,387) 6,227,482
Net change in unrealized 1,545,321 (1,462,882)
Total Trading Results (291,066) 4,764,600
Interest Income (DWR) 1,116,904 1,330,004
Total Revenues 825,838 6,094,604
EXPENSES
Brokerage commissions (DWR) 1,672,769 1,842,618
Management fees (DWFCM) 923,076 1,017,715
Transaction fees and costs 109,403 128,818
Administrative expenses 54,000 56,000
Incentive fee (DWFCM) - 284,832
Total Expenses 2,759,248 3,329,983
NET INCOME (LOSS) (1,933,410) 2,764,621
NET INCOME (LOSS) ALLOCATION
Limited Partners
(1,912,194) 2,696,906 General
Partner (21,216)
67,715
NET INCOME (LOSS) PER UNIT
Limited Partners
(63.26) 95.32 General
Partner (63.26)
95.32 <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, 1999 and 1998
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
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
Partners' Capital,
December 31, 1998 29,197.899 $44,949,810 $522,358
$45,472,168
Net Loss - (1,912,194) (21,216)
(1,933,410)
Redemptions (2,863.023) (4,191,256) -
(4,191,256)
Partners' Capital,
September 30, 1999 26,334.876 $38,846,360 $501,142
$39,347,502
<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,
1999 1998
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss): (1,933,410) 2
,764,621
Noncash item included in net income (loss):
Net change in unrealized (1,545,321) 1
,462,882
Decrease in operating assets:
Interest receivable (DWR) 15,969 9,130
Increase (decrease) in operating liabilities:
Accrued management fees (DWFCM) (14,932) (1,331)
Accrued administrative expenses 17,569
29,040
Incentive fee payable (DWFCM) -
(152,586)
Net cash provided by (used for) operating activities (3,460,125)
4,111,756
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in redemptions payable 166,792 607,662
Redemptions of units (4,191,256)
(3,750,773)
Net cash used for financing activities (4,024,464)
(3,143,111)
Net increase (decrease) in cash (7,484,589) 968,645
Balance at beginning of period 46,211,886
43,146,223
Balance at end of period 38,727,297
44,114,868
<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, 1998 Annual Report on Form 10-K.
1. Organization
DWFCM International Access Fund L.P. is a limited partnership
organized to engage primarily in the speculative trading of
futures and forward contracts, physical commodities, and other
commodity interests including foreign currencies, financial
instruments, metals, energy and agricultural products
(collectively, "futures interests"). The general partner for the
Partnership is Demeter Management Corporation ("Demeter"). The
non-clearing commodity broker is Dean Witter Reynolds Inc.
("DWR") and an unaffiliated clearing commodity broker, Carr
Futures Inc. ("Carr"), provides clearing and execution services.
The Trading Manager is Dean Witter Futures & Currency Management
Inc. ("DWFCM" or the "Trading Manager"). Demeter, DWR, and DWFCM
are wholly-owned subsidiaries of Morgan Stanley Dean Witter & Co.
("MSDW").
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
Treasury bill rates. The Partnership pays brokerage commissions
to DWR. Management and incentive fees (if any) incurred by the
Partnership are paid to DWFCM.
3. Financial Instruments
The Partnership trades futures and forward contracts, physical
commodities and other commodities interests including foreign
currencies, financial instruments, metals, energy, and
agricultural products. 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.
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities"
effective for fiscal years beginning after June 15, 1999. The
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Partnership elected to adopt the provisions of SFAS No. 133
beginning with the fiscal year that ended December 31, 1998.
SFAS No. 133 supersedes SFAS No. 119 and No. 105, which required
the disclosure of average aggregate fair values and
contract/notional values, respectively, of derivative financial
instruments for an entity which carries its assets at fair value.
The application of SFAS No. 133 does not have a significant
effect on the Partnership's financial statements.
The net unrealized gain (loss) on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the Statements of Financial Condition and totaled $1,099,132 and
$(446,189) at September 30, 1999 and December 31, 1998,
respectively.
Of the $1,099,132 net unrealized gain on open contracts at
September 30, 1999, $989,511 related to exchange-traded futures
contracts and $109,621 related to off-exchange-traded forward
currency contracts.
Of the $446,189 net unrealized loss on open contracts at December
31, 1998, $1,485,813 related to exchange-traded futures contracts
and $(1,932,002) related to off-exchange-traded forward currency
contracts.
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Exchange-traded futures contracts held by the Partnership at
September 30, 1999 and December 31, 1998 mature through March
2000 and June 1999, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 1999
and December 31, 1998 mature through December 1999 and March
1999, respectively.
The Partnership is subject to the credit risk associated with
counterparty non-performance. The credit risk associated with
the instruments in which the Partnership is involved is limited
to the amounts reflected in the Partnership's Statements of
Financial Condition. 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 all of 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 (loss) on all open futures contracts, which
funds, in the aggregate, totaled $39,716,808 and $47,697,699 at
September 30, 1999 and December 31, 1998, respectively.
<PAGE>
DWFCM INTERNATIONAL ACCESS FUND L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 contractsy: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
Director and 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-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 38,727,297
<SECURITIES> 0
<RECEIVABLES> 122,855<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 39,347,284<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 39,347,284<F3>
<SALES> 0
<TOTAL-REVENUES> 825,838<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,759,248
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,933,410)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,933,410)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,933,410)
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable of $122,855.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $1,099,132.
<F3>Liabilities include redemptions payable of $406,709, accrued
management fees of $99,635, and accrued administrative expenses
of $95,438.
<F4>Total revenue includes realized trading revenue of $(1,836,387),
net change in unrealized of $1,545,321 and interest income of
$1,116,904.
</FN>
</TABLE>
