<PAGE>
Dean Witter Spectrum Series
Monthly Report
April 1997
Dear Limited Partner:
The Net Asset Value per unit for each of the three Dean Witter Spectrum
Funds as of April 30, 1997 was as follows:
Funds N.A.V. % change for month
Spectrum Balanced $11.89 -1.69%
Spectrum Strategic $11.60 -6.91%
Spectrum Technical $13.60 -2.94%
In Spectrum Balanced, a balanced portfolio of stocks, bonds and managed
futures utilizing the futures, options and forwards markets, losses were
recorded during April in the managed futures portion of the portfolio from
short positions in U.S. interest rate futures, as bond prices rallied
higher late in the month. Additional losses in the managed futures
component were recorded from trading corn and soybean oil futures as prices
in these markets moved in a choppy pattern. In currency trading, losses
were recorded from transactions involving the Swiss franc, New Zealand and
Australian dollar. A portion of these currency losses was offset by gains
recorded from short Japanese yen positions as the value of the U.S. dollar
strengthened relative to the yen. Gains recorded in both the stock and
bond portion of the balanced portfolio, as U.S. stock and bond prices
finished the month higher, helped mitigate losses in the managed futures
component.
In Spectrum Strategic, a Fund managed by three trading advisors who employ
fundamental trading methodologies in a diverse portfolio of futures,
options and forwards markets, losses were posted for the month due
primarily to choppy movement in European interest rate futures,
particularly Italian bond futures. Additional losses were experienced from
short U.S. interest rate futures positions as prices rallied higher late in
the month after showing signs of trending lower previously in reaction to
an increase in short-term U.S. interest rates late in March. In stock
index futures, losses were recorded as global stock index futures prices
moved in a short-term volatile range during most of the month. Losses were
also recorded in metals and soft commodities as prices moved against their
previous trends. A portion of the Fund's losses was offset by gains
recorded in the agricultural markets from long wheat and soybean futures
positions, as prices in these markets moved higher.
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems across a diverse
portfolio of futures, options and forwards markets, losses were recorded
during April due primarily to short positions in U.S. interest rate futures
as prices rallied higher late in the month. Losses were also recorded from
choppy price movement in European and Australian interest rate futures, as
well as from long Japanese bond futures, as prices in this market finished
the month lower. In stock index futures, losses were recorded as global
stock index futures prices moved in a short-term volatile range during most
of April. In the metals markets, losses were recorded from long positions
in aluminum and copper futures as base metals prices moved lower early in
the month. Trading gains experienced from short gold futures positions, as
prices moved lower, offset a portion of the losses within this complex. A
portion of the Fund's overall losses was offset by gains recorded from
short positions in the Japanese yen as the value of the U.S. dollar
continued to strengthen relative to the yen. Additional currency gains
were recorded from short German mark positions. Gains were also recorded
from long coffee futures positions as prices continued the upward momentum
that was present earlier in the year.
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 Dean Witter Account Executive.
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,
Mark J. Hawley
President
Demeter Management Corporation
General Partner
<PAGE>
Historical Fund Performance
Presented below is the percentage change in Net Asset Value per Unit from
the start of each calendar year the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for
the Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE
RESULTS.
Funds Year Return
Spectrum Balanced
1994(2 months) -1.7%
1995 22.8%
1996 -3.7%
1997(4 months) 2.2%
Inception-to-Date Return: 18.9%
Annualized Return: 7.2%
___________________________________________________________________________
_____________________________
Spectrum Strategic
1994(2 months) 0.1%
1995 10.5%
1996 -3.5%
1997(4 months) 8.7%
Inception-to-Date Return: 16.0%
Annualized Return: 6.1%
___________________________________________________________________________
_____________________________
Spectrum Technical
1994(2 months) -2.2%
1995 17.6%
1996 18.4%
1997(4 months) -.1%
Inception-to-Date Return: 36.0%
Annualized Return: 13.1%
<PAGE>
<TABLE>
Statements of Operations
For the Month Ended April 30, 1997
(Unaudited)
<CAPTION>
Dean Witter
Spectrum Balanced
Percent of
April
1,1997
Beginning
Amount Net Asset
Value
$ %
REVENUES
<S> <C> <C>
Trading Profit (Loss):
Realized (169,332)
(.86)
Net change in unrealized (136,039)
(.69)
Total Trading Results (305,371)
(1.55)
Interest Income (DWR) 83,719
.42
Total Revenues (221,652) (1.13)
EXPENSES
Brokerage commissions (DWR) 90,456
.46
Management fees 20,558
.10
Total Expenses 111,014
.56
NET INCOME (332,666)
(1.69)
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1997
(Unaudited)
Dean Witter Spectrum
Balanced
Units Amount
Per Unit
$ $
$
<S> <C>
<C> <C>
Net Asset Value,
April 1, 1997 1,631,806.129 19,735,898
12.09
Net Income , (332,666)
(.20)
Redemptions (12,494.381) (148,558)
11.89
Subscriptions 44,543.397 529,621
11.89
Net Asset Value,
April 30, 1997 1,663,855.145 19,784,295
11.89
The accompanying notes are an integral part of these
financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dean Witter Spectrum Strategic Dean Witter Spectrum Technical
Percent of
Percent of
April 1, 1997
April 1, 1997
Beginning
Beginning
Amount Net Asset Value Amount Net Asset Value
$ % $ %
<C> <C> <C> <C>
(225,012) (.40) (1,668,029) (1.21)
(3,263,228) (5.81) (1,426,810) (1.04)
(3,488,240) (6.21) (3,094,839) (2.25)
179,675 .32 449,916 .33
(3,308,565) (5.89) (2,644,923) (1.92)
386,100 .69 945,871 .69
187,201 .33 458,604 .33
573,301 1.02 1,404,475 1.02
(3,881,866) (6.91) (4,049,398) (2.94)
Dean Witter Spectrum Strategic Dean Witter Spectrum
Technical
Units Amount Per Unit Units Amount Per
Unit
$ $ $ $
<C> <C> <C> <C> <C> <C>
4,507,548.149 56,160,053 12.46 9,819,040.707 137,581,223
14.01
, (3,881,866) (.86) , (4,049,398)
(.41)
(28,615.882) (331,944) 11.60 (46,241.804) (628,889)
13.60
215,066.441 2,494,771 11.60 485,991.674 6,609,487
13.60
4,693,998.708 54,441,014 11.60 10,258,790.577 139,512,423
13.60
</TABLE>
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization , Dean Witter Spectrum Balanced L.P. ("Spectrum
Balanced"), Dean Witter Spectrum Strategic L.P. ("Spectrum
Strategic") and Dean Witter Spectrum Technical L.P.
("Spectrum Technical") (individually, a "Partnership", or
collectively, the "Partnerships") are limited partnerships
organized to engage in the speculative trading of futures
and forward contracts, options on futures contracts and on
physical commodities, and other commodities interests,
including foreign currencies, financial instruments,
precious and industrial metals, energy products, and
agriculturals. The general partner for each Partnership is
Demeter Management Corporation ("Demeter"). The commodity
broker is Dean Witter Reynolds Inc. ("DWR"). Both DWR and
Demeter are wholly-owned subsidiaries of Dean Witter,
Discover & Co. ("DWD").
Demeter is required to maintain a 1% minimum interest in the
equity of the Partnership and income (losses) are shared by
the General and Limited Partners based upon their
proportional ownership interests.
Basis of Accounting , The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts in the
financial statements.
Revenue Recognition - Commodity futures contracts and
forward contracts on foreign currencies are open commitments
until settlement date. They are valued at market and the
resulting unrealized gains and losses are reflected in
income. Monthly, DWR pays the Partnership interest income
based upon 80% of its average daily Net Assets in the case
of Spectrum Strategic and Spectrum Technical and 100% in the
case of Spectrum Balanced. The interest rate is equal to a
prevailing rate on U.S. Treasury Bills. For purposes of
such interest payments, Net Assets do not include monies due
the Partnership on forward contracts and other commodity
interests, but not actually received.
Net Income (Loss) per Unit - Net income (loss) per Unit is
computed using the weighted average number of units
outstanding during the period.
Brokerage and Related Transaction Fees and Costs , Brokerage
fees for Spectrum Balanced are accrued at a flat rate
monthly fee of 11/24 of 1% of the Net Assets as of the first
day of each month.
Brokerage fees for Spectrum Strategic and Spectrum Technical
are accrued at a flat rate monthly fee of 33/48 of 1% of the
Net Assets as of the first day of each month.
Such fee will cover all brokerage commissions, transaction
fees and costs and ordinary administrative and continuing
offering expenses.
Operating Expenses - The Partnerships incur monthly
management fees and may incur incentive fees. All common
administrative and continuing offering expenses including
legal, auditing, accounting, filing fees and other
related expenses are borne by DWR through the brokerage fees
paid by each Partnership.
<PAGE>
Dean Witter Spectrum Series L.P.
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 on redemption 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 as
of the opening of business on the first day of the month.
No selling commissions or charges related to the continuing
offering of Units will be paid by the Limited Partners or
the Partnership. DWR will pay all such costs.
Redemptions , Limited Partners may redeem some or all of
their Units at 100% of the Net Asset Value Per Unit as of
the end of the last day that is six months after the closing
at which a person becomes a limited partner, upon five
business days advance notice by redemption form to Demeter.
Thereafter, Units may be redeemed as of the end of any month
upon five business days advance notice by redemption form to
Demeter. However, any Units redeemed at or prior to the end
of the twelfth, eighteenth, or twenty fourth full months
following the closing at which such person first becomes a
limited partner, may be assessed a redemption charge equal
to 3%, 2% or 1% respectively, of the Net Asset Value per
Unit on the date of such redemption. Redemptions must be
made in whole Units, in a minimum amount of 50 Units, unless
a Limited Partner is redeeming his entire interest in a
Partnership.
Exchanges - On the last day of the first month, which occurs
more than six months after a person first becomes a Limited
Partner in any of the Partnerships, and the end of each
month thereafter, Limited Partners may exchange their
investment among the Partnerships (subject to certain
restrictions outlined in the Limited Partnership Agreement)
without paying additional charges.
Dissolution of the Partnership - Each Partnership will
terminate on December 31, 2035 regardless of its financial
condition at such time, or at an earlier date if certain
conditions occur as defined in each Partnership's Limited
Partnership Agreement.
2. Related Party Transactions
Each Partnership's pays brokerage commissions to DWR as
described in Note 1. Each Partnership's cash is on deposit
with DWR in commodity trading accounts to meet margin
requirements as needed. DWR pays interest on these funds as
described in Note 1. Each Partnership is authorized to
issue and sell Units at Monthly Closings at a price per Unit
equal to 100% of the Net Asset Value of a Unit of such
Partnership as of the close of business on the date of such
monthly closing.
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements -
(Continued)
3. Trading Advisors
Demeter, on behalf of each Partnership, retains certain
commodity trading advisors to make all trading decisions for
the Partnerships. The trading advisors for each Partnership
are as follows:
Dean Witter Spectrum Balanced L.P.
RXR, Inc.
Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
A. Gary Shilling & Co., Inc.
Willowbridge Associates Inc.
Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.
Chesapeake Capital Corporation
John W. Henry & Company Inc. ("JWH")
Compensation to the trading managers by the Partnerships
consists of a management fee and an incentive fee as
follows:
Management Fee - The management fee is accrued at the rate
of 5/48 of 1% of the Net Assets on the first day of each
month (a 1.25% annual rate) to Spectrum Balanced.
The management fee is accrued at the rate of 1/3 of 1% per
month of the Net Assets allocated to each trading advisor on
the first day of each month (a 4% annual rate) to Spectrum
Strategic and Spectrum Technical.
Incentive Fee , Each Partnership will pay a monthly
incentive fee equal to 15% of the "Trading Profits" as
defined in the Limited Partnership Agreement, experienced
with respect to each trading manager's allocated Net Assets
as of the end of each calendar month. When trading losses
are incurred, no incentive fee will be paid in subsequent
months until all such losses are recovered.
Legal Matters - On September 6, 10, and 20, 1996 and on
March 13, 1997, similar purported class actions were filed
in the Superior Court of the State of California, County of
Los Angeles, on behalf of all purchasers of interests in
limited partnership commodity pools sold by DWR. Named
defendants include DWR, Demeter, Dean Witter Futures &
Currency Management Inc., DWD (all such parties referred to
hereafter as the "Dean Witter Parties"), certain limited
partnership commodity pools of which Demeter is the general
partner, and certain trading advisors (including JWH) to
those pools. Also, on September 18 and 20, 1996 similar
purported class actions were filed in the Supreme Court of
the State of New York, New York County, and on November 14,
1996 in the Superior Court of the State of Delaware, New
Castle County, against the Dean Witter Parties and certain
trading advisors (including JWH) on behalf of all purchasers
of interest in various limited partnership commodity pools
sold by DWR. Generally, these complaints allege, among
other things, that the defendants committed fraud, deceit,
misrepresentation, breach of fiduciary duty, fraudulent and
unfair business practices, unjust enrichment, and conversion
in connection with the sale and operation of the various
limited partnership commodity pools.
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Concluded)
The complaints seek unspecified amounts of compensatory and
punitive damages and other relief. It is possible that
additional similar actions may be filed and that, in the
course of these actions, other parties could be added as
defendants. The Dean Witter Parties believe that they have
strong defenses to, and they will vigorously contest, the
actions. Although the ultimate outcome of legal proceedings
cannot be predicted with certainty, it is the opinion of
management of the Dean Witter Parties that the resolution of
the actions will not have a material adverse effect on the
financial condition or the results of operations of any of
the Dean Witter Parties.
