Morgan Stanley Dean Witter Charter Series
Monthly Report
November 2000
Dear Limited Partner:
Effective December 1, 2000, a new fund was added to the Series: Morgan
Stanley Dean Witter Charter DWFCM, L.P. ("Charter DWFCM"). Charter DWFCM,
which was formerly known as International Access Fund, L.P. and has been
trading since March 1994, will participate in the global interest rate,
stock index, currency, metals and energy futures markets and utilize Dean
Witter Futures & Currency Management Inc. as its Trading Advisor. The
Trading Advisor will use a technical trend-following trading program to
participate in futures contracts traded on global futures exchanges and
certain selected foreign currencies traded in the forward markets. In
connection with becoming part of the Charter Series, Charter DWFCM's
Limited Partnership Agreement has been amended in order to conform to the
other Charter Series Limited Partnership Agreements.
The Net Asset Value per Unit for each of the four Morgan Stanley Dean
Witter Charter Funds as of November 30, 2000 was as follows:
Funds N.A.V. % change for month
Charter DWFCM $14.52 4.29%
Charter Graham $11.06 16.60%
Charter Millburn $ 8.92 4.54%
Charter Welton $ 7.38 1.96%
In general, the performance disparity between the Funds in the Charter
Series is due to the portfolio structure and trading approaches unique to
each Fund. Each of the Charter funds recorded gains in the global interest
rate futures markets, with Charter Graham experiencing the most significant
gains due to its greater exposure in those markets. In Charter DWFCM, the
profits recorded in global interest rate futures more than offset losses
incurred primarily in the currency markets. Charter Graham recorded
additional gains in the stock index and energy futures markets. In Charter
Millburn, additional gains were recorded in the energy futures markets
while difficulty was encountered in the currency markets. Charter Welton,
which had the least exposure to global interest rate futures, generated
smaller gains from this sector. Additional profits were realized in the
energy markets, while losses were suffered primarily in the currency and
metals markets.
Charter DWFCM
The Fund increased in value during November primarily as a result of gains
recorded in the global interest rate futures markets. Gains were recorded
from long positions in German interest rate futures as prices rose amid
weakness in the global equity markets and a stronger euro. This upward move
was also aided by continued uncertainty caused by the U.S. Presidential
Election. Long Japanese government bond futures positions also profited as
prices rose sharply on investor buying as sluggish stock prices in both the
U.S. and Japan indicated fears for a possible economic downturn.
Additional profits were recorded from long positions in U.S. interest rate
futures as prices in these markets also moved higher as a result of a sell-
off in stocks and fear of a slowing economy. A portion of these gains was
offset by losses experienced in the currency and metals futures markets.
In the currency markets, losses were recorded from short euro positions as
the value of the European common currency strengthened versus the British
pound, U.S. dollar and other world currencies as recent economic data
indicated that the U.S. economy might experience a "soft landing." An
intervention by the European Central Bank on Friday, November 3, surprised
the foreign exchange markets, also boosting the euro higher versus most
currencies. Smaller currency losses were incurred from short Swiss franc
positions as its value strengthened on the heels of the euro. In the
metals markets, losses experienced from short aluminum futures positions
more than offset gains recorded from short positions in copper futures.
<PAGE>
Charter Graham
The Fund increased in value during November due primarily to gains recorded
in the interest rate futures markets from long positions in Japanese bond
futures as prices rose sharply on investor buying as sluggish stock prices
in both the U.S. and Japan indicated fears for a possible economic
downturn. Profits were also recorded from long positions in U.S. and
German interest rate futures as U.S. and European government bond prices
moved higher. In the global stock index futures markets, profits were
recorded from short positions in DAX Index futures as German stock prices
declined on nervousness over high-tech earnings growth. Short CAC-40 Index
futures positions added to profits as the uncertainty over the U.S.
Presidential Election also took its toll on the European markets, pushing
prices lower. Additional gains were recorded in the energy markets, from
long natural gas futures positions as prices moved higher amid forecasts
for cold weather in the U.S. Northeast and after an unexpected decrease in
U.S. natural gas inventories. Profits were also experienced in the
agricultural markets from long soybean meal futures positions as prices
increased on prospects for a European Union-wide ban on the use of meat and
bone meal as animal feed. Smaller gains were recorded in the currency
markets from short positions in the Korean won and Japanese yen as the
value of these Asian currencies weakened against the U.S. dollar due to
concerns over political and economic woes in that region.
Charter Millburn
The Fund increased in value during November primarily due to gains recorded
in the global interest rate futures markets from long U.S. interest rate
futures positions as prices in these markets increased as a result of a
late-month sell-off in stocks. Long Japanese interest rate futures
positions also resulted in gains for this market complex as Japanese bond
prices increased on "flight-to-quality" buying spurred by a tumble in the
benchmark Nikkei Index and skepticism regarding the Japanese economy. Long
positions in German bund futures were also profitable as prices rose amid
the weakness in global equity markets and a stronger euro towards month-
end. Smaller gains were recorded in the energy markets from long futures
positions in crude oil and natural gas as prices rose on concerns regarding
low inventories and forecasts for cold weather in key consumption regions.
A portion of overall Fund gains was offset by losses recorded in the
currency markets from short positions in the euro as the value of the
European common currency strengthened later in the month relative to the
British pound and U.S. dollar on concerns regarding slowing U.S. growth and
fears of additional currency interventions by the European Central Bank.
Smaller losses were experienced in the metals markets from short aluminum
futures positions as prices increased on technically-based factors.
Charter Welton
The Fund increased in value during November primarily due to gains recorded
in the global interest rate futures markets from long positions in Japanese
interest rate futures as Japanese bond prices increased on "flight-to-
quality" buying spurred by a tumble in the benchmark Nikkei Index and
skepticism regarding the Japanese economy. Long positions in German bund
futures were also profitable as prices rose amid the weakness in global
equity markets and a stronger euro towards month-end. Additional gains
were recorded from long U.S. interest rate futures positions as prices in
these markets increased as a result of a late-month sell-off in stocks.
Additional gains were recorded in the energy markets from long natural gas
futures positions as prices moved higher amid forecasts for cold weather in
the U.S. Northeast and worries about adequate supplies for this winter.
Long crude oil futures positions were also profitable as prices rose on
concerns regarding low inventories. Smaller gains were experienced in the
agricultural markets from long soybean meal futures positions as prices
increased on prospects for a European Union-wide ban on the use of meat and
bone meal as animal feed. A portion of overall Fund gains was offset by
losses recorded in the currency markets from short positions in the euro
and Swiss franc as the value of these European currencies strengthened
versus the U.S. dollar and other major currencies late in the month on
fresh evidence that the U.S. economy is cooling down and fears of
additional currency interventions by the European Central Bank. Additional
losses were incurred in the metals markets from trading in base metals
futures and in the soft commodities markets from long sugar futures
positions early in the month.
Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd
Floor New York, NY 10048, or your Morgan Stanley Dean Witter Financial
Advisor.
<PAGE>
I hereby affirm, that to the best of my knowledge and belief, the
information contained in this report is accurate and complete. Past
performance is not a guarantee of future results.
Sincerely,
Robert E. Murray
Chairman
Demeter Management Corporation
General Partner
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER CHARTER SERIES
<CAPTION>
Historical Fund Performance
Presented below is the percentage change in Net Asset Value per
Unit from the start of every calendar year for each Fund in the
Morgan Stanley Dean Witter Charter Series. Also provided is the
inception-to-date return and the annualized return since
inception for each fund. PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS.
Charter DWFCM
Year Return
<S> <C>
1994 (10 months) - 7.3%
1995 21.9%
1996 4.0%
1997 26.2%
1998 5.1%
1999 -9.2%
2000 (11 months) 2.7%
Inception-to-Date Return: 45.2%
Annualized Return: 5.7%
_________________________________________________________________
___________________________
Charter Graham
Year Return
1999 (10 months) 2.9%
2000 (11 months) 7.5%
Inception-to-Date Return: 10.6%
Annualized Return: 5.9%
_________________________________________________________________
___________________________
Charter Millburn
Year Return
1999 (10 months) -7.2%
2000 (11 months) -3.9%
Inception-to-Date Return: - 10.8%
Annualized Return: -6.3%
_________________________________________________________________
___________________________
Charter Welton
Year Return
1999 (10 months) -12.3%
2000 (11 months) -17.4%
Inception-to-Date Return: -26.2%
Annualized Return: - 15.9%
_________________________________________________________________
___________________________
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Charter Series
Statements of Operations
For the Month Ended November 30, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter
Charter DWFCM Morgan Stanley Dean Witter Charter Graham
Percent of
Percent of
November 1, 2000
November 1, 2000 Beginning
Beginning
Amount Net Asset Value Amount
Net Asset Value
$ % $
%
REVENUES
<S> <C> <C>
<C> <C>
Trading profit (loss):
Realized 1,702,574 5.53
2,379,540 10.88
Net change in unrealized (302,043) (0.98)
1,299,867 5.94
Total Trading Results 1,400,531 4.55
3,679,407 16.82
Interest Income (DWR) 123,095 0.40
114,776 0.52
Total Revenues 1,523,626 4.95
3,794,183 17.34
EXPENSES
Brokerage fees (DWR) 113,448 0.37
127,557 0.58
Management fees 80,483 0.26
36,445 0.16
Administrative expenses 6,000 0.02 -
-
Transaction fees and costs 3,624 0.01
- -
Total Expenses 203,555 0.66
164,002 0.74
NET INCOME 1,320,071 4.29
3,630,181 16.60
Morgan Stanley Dean Witter Charter Series
Statements of Changes in Net Asset Value
For the Month Ended November 30, 2000
(Unaudited)
Morgan Stanley Dean Witter Charter DWFCM Morgan
Stanley Dean Witter Charter Graham
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
November 1, 2000 2,212,217.200 30,792,770 13.92
2,304,570.818 21,866,995 9.49
Net Income - 1,320,071 0.60 -
3,630,181 1.57
Redemptions (44,642.353) (648,207) 14.52
(23,611.936) (261,148) 11.06
Subscriptions 10,363.085 150,472 14.52
34,887.470 385,855 11.06
Net Asset Value,
November 30, 2000 2,177,937.932 31,615,106 14.52
2,315,846.352 25,621,883 11.06
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Charter Series
Statements of Operations
For the Month Ended November 30, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter
Charter Millburn Morgan Stanley Dean Witter Charter Welton
Percent of
Percent of
November 1, 2000
November 1, 2000 Beginning
Beginning
Amount Net Asset Value Amount
Net Asset Value
$ % $
%
REVENUES
<S> <C> <C>
<C> <C>
Trading profit (loss):
Realized 1,141,962 4.63
202,726 1.00
Net change in unrealized 41,572 0.17
243,573 1.20
Total Trading Results 1,183,534 4.80
446,299 2.20
Interest Income (DWR) 119,013 0.48
106,018 0.51
Total Revenues 1,302,547 5.28
552,317 2.71
EXPENSES
Brokerage fees (DWR) 143,722 0.58
118,846 0.58
Management fees 41,063 0.16
33,956 0.17
Total Expenses 184,785 0.74
152,802 0.75
NET INCOME 1,117,762 4.54
399,515 1.96
Morgan Stanley Dean Witter Charter Series
Statements of Changes in Net Asset Value
For the Month Ended November 30, 2000
(Unaudited)
Morgan Stanley Dean Witter Charter Millburn
Morgan Stanley Dean Witter Charter Welton
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
November 1, 2000 2,886,014.175 24,637,999 8.54
2,813,118.229 20,383,811 7.24
Net Income - 1,117,762 0.38 -
399,515 0.14
Redemptions (35,723.434) (318,653) 8.92
(75,292.765) (555,661) 7.38
Subscriptions 35,059.644 312,732 8.92
45,185.232 333,467 7.38
Net Asset Value,
November 30, 2000 2,885,350.385 25,749,840 8.92
2,783,010.696 20,551,132 7.38
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Charter Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Charter DWFCM L.P. ("Charter
DWFCM"), Morgan Stanley Dean Witter Charter Graham L.P. ("Charter Graham"),
Morgan Stanley Dean Witter Charter Millburn L.P. ("Charter Millburn"), and
Morgan Stanley Dean Witter Charter Welton L.P. ("Charter Welton"),
(individually, a "Partnership", or collectively, the "Partnerships") are
limited partnerships organized to engage primarily in the speculative
trading of futures and forward contracts, options on futures contracts and
on physical commodities and other commodity interests, including foreign
currencies, financial instruments, metals, energy, and agricultural
products (collectively, "futures interests").
The general partner of each Partnership is Demeter Management Corporation
("Demeter"). The non-clearing commodity broker is Dean Witter Reynolds,
Inc. ("DWR"). The clearing commodity brokers for the Partnerships are
Morgan Stanley & Co. Inc. ("MS & Co.") and Morgan Stanley & Co.
International Limited ("MSIL") which provide clearing and execution
services. The trading advisor for Charter DWFCM is Dean Witter Futures &
Currency Management Inc. ("DWFCM"). Demeter, DWR, DWFCM, MS & Co. and MSIL
are wholly-owned subsidiaries of Morgan Stanley Dean Witter & Co.
Demeter is required to maintain a 1% minimum interest in the equity of each
Partnership and income (losses) are shared by Demeter and Limited Partners
based on their proportional ownership interests.
Use of Estimates - The financial statements are prepared in accordance with
generally accepted accounting principles, which require management to make
estimates and assumptions that affect the reported amounts in the financial
statements and related disclosures. Management believes that the estimates
utilized in the preparation of the financial statements are prudent and
reasonable. Actual results could differ from those estimates.
Revenue Recognition - Futures interests are open commitments until
settlement date. They are valued at market on a daily basis and the
resulting net change in unrealized gains and losses is reflected in the
change in unrealized profit (loss) on open contracts from one period to the
next in the statements of operations. Monthly, DWR credits Charter Graham,
Charter Millburn and charter Welton with interest income on 100% of its
average daily funds held in its individual account at DWR and on 80% in the
case of Charter DWFCM. The interest rates used are equal to that earned by
DWR on its U.S. Treasury bill investments. For purposes of such interest
payments Net Assets do not include monies due the Partnerships on forward
contracts and other futures interests, but not actually received.
Net Income (Loss) per Unit - Net income (loss) per unit of limited
partnership interest ("Unit(s)") is computed using the weighted average
number of Units outstanding during the period.
Brokerage and Related Transaction Fees and Costs - Charter DWFCM accrues
brokerage commissions on a half-turn basis at 80% of DWR's published non-
member rates. Transaction fees and costs are accrued on a half-turn basis.
Brokerage commissions and transaction fees chargeable to the Partnership
are capped at 13/20 of 1% per month (a maximum 7.8% annual rate) of the
Partnership's adjusted month-end Net Assets.
Charter Graham, Charter Millburn and Charter Welton pay a flat-rate monthly
brokerage fee of 1/12 of 7% of its Net Assets as of the first day of each
month (a 7% annual rate). Such fees currently cover all brokerage
commissions, transaction fees and costs and ordinary administrative and
offering expenses.
Operating Expenses - Charter DWFCM bears all operating expenses related to
its trading activities, to a maximum 1/4 of 1% annually of the Partnership's
average month-end Net Assets. These include filing fees, legal, auditing,
accounting, mailing, printing and other incidental expenses as permitted by
the Limited Partnership Agreement.
Each of the Partnerships incur monthly management fees and may incur
incentive fees. Demeter bears all other operating expenses.
<PAGE>
Morgan Stanley Dean Witter Charter Series
Notes to Financial Statements
(Continued)
Income Taxes - No provision for income taxes has been made in the
accompanying financial statements, as partners are individually responsible
for reporting income or loss based upon their respective share of each
Partnership's revenues and expenses for income tax purposes.
Distributions - Distributions, other than redemptions of Units, are made on
a pro-rata basis at the sole discretion of Demeter. No distributions have
been made to date.
Continuing Offering - Units of each Partnership are offered at a price
equal to 100% of the Net Asset Value per Unit at monthly closings held as
of the last day of each month.
Redemptions - Limited partners may redeem some or all of their Units as of
the last day of the sixth month following the closing at which a person
first becomes a Limited Partner. Redemptions may only be made in whole
Units, with a minimum of 100 Units required for each redemption, unless a
Limited Partner is redeeming his entire interest in the Partnership.
Units redeemed on or prior to the last day of the twelfth month from the
date of purchase will be subject to a redemption charge equal to 2% of the
Net Asset Value of a Unit on the
Redemption Date. Units redeemed after the last day of the twelfth month
and on or prior to the last day of the twenty-fourth month from the date of
purchase will be subject to a redemption charge equal to 1% of the Net
Asset Value of a Unit on the Redemption Date. Units redeemed after the
last day of the twenty-fourth month from the date of purchase will not be
subject to a redemption charge.
Exchanges - On the last day of the first month which occurs more than 180
days after a person first becomes a Limited Partner in any of the
Partnerships, and at the end of each month thereafter, Limited Partners may
transfer their investment among the Partnerships (subject to certain
restrictions outlined in the Limited Partnership Agreements) without paying
additional charges.
Dissolution of the Partnership - Charter DWFCM will terminate on December
31, 2025 and Charter Graham, Charter Millburn and Charter Welton will
terminate on December 31, 2035 or at an earlier date if certain conditions
occur as defined in each Partnership's Limited Partnership Agreement.
2. Related Party Transactions
Each Partnership pays brokerage expenses to DWR as described in Note 1.
Each Partnership's cash is on deposit with DWR and MS & Co., and MSIL in
futures interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds as described in Note 1.
Demeter, on behalf of Charter DWFCM and itself, entered into a management
agreement with DWFCM to make all trading decisions for the Partnership.
Management and incentive fees (if any) are paid to DWFCM.
3. Trading Advisors
Demeter, on behalf of Charter Graham, Charter Millburn and Charter Welton
retains certain commodity trading advisors to make all trading decisions
for the Partnerships. The trading advisors are as follows:
Morgan Stanley Dean Witter Charter Graham L.P.
Graham Capital Management L.P.
Morgan Stanley Dean Witter Charter Millburn L.P.
Millburn Ridgefield Corporation
Morgan Stanley Dean Witter Charter Welton L.P.
Welton Investment Corporation
Compensation to the trading advisors by the Partnerships consists of a
management fee and an incentive fee as follows:
<PAGE>
Morgan Stanley Dean Witter Charter Series
Notes to Financial Statements
(Concluded)
Management Fee - Charter DWFCM pays a monthly management fee equal to 1/4 of
1% (a 3% annual rate) of the Partnership's adjusted Net Assets, as defined
in the management agreement, as of the last day of each month.
Charter Graham, Charter Millburn and Charter Welton pay a flat-rate monthly
fee of 1/12 of 2% of the Net Assets under management by each trading
advisor as of the first day of each month (a 2% annual rate).
Incentive Fee - Charter DWFCM will pay a quarterly incentive fee equal to
15% of the trading profits earned by the Partnership as of the end of each
calendar quarter. Charter Graham, Charter Millburn and Charter Welton pay
a monthly incentive fee equal to 20 % of trading profits as of the end of
each calendar month. Trading profits represent the amount by which
profits from futures, forward and options trading exceed losses after
brokerage and management fees are deducted. When a trading advisor
experiences losses as of the end of a calendar month, the trading advisor
must earn back such losses before that trading advisor is eligible for an
incentive fee in the future.
