Dean Witter Spectrum Series
Monthly Report
April 1998
Dear Limited Partner:
The Net Asset Value per Unit for each of the three Dean
Witter Spectrum Funds as of April 30, 1998 was as follows:
Funds N.A.V. % change
for month
Spectrum Global Balanced $14.33 -
1.77%
Spectrum Strategic $9.73 -
11.10%
Spectrum Technical $14.03 -
4.66%
In Spectrum Balanced, a balanced portfolio of stocks, bonds
and managed futures utilizing the futures, options and
forward markets, losses were experienced in the managed
futures component from long positions in most global bond
futures as prices in these markets moved without consistent
direction. In currencies, losses were recorded from
crossrate transactions involving the Japanese yen relative
to the Australian dollar and Swiss franc. Smaller currency
losses were experienced from long British pound positions as
its value declined relative to the German mark. Smaller
losses were recorded in the energy markets from long natural
gas futures positions as prices moved lower after moving
higher during March. Trading gains recorded from short corn
and cotton futures positions helped to offset a portion of
the losses within this complex. In the stock portion of the
balanced portfolio, gains were recorded from long S&P 500
Index futures as U.S. equity prices finished the month
higher. Smaller gains recorded from long positions in the
bond portion of the portfolio also mitigated overall Fund
losses for the month.
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,
significant losses were recorded due to sharp unanticipated
price moves in several of the markets traded by the Fund,
particularly in currencies and financial futures. In
currencies, the Fund's advisors were expectant of a
continued strengthening in the value of the U.S. dollar
relative to the Japanese yen due to the recent economic woes
plaguing the Far East, thus establishing short yen
positions. However, during early April the value of the yen
spiked suddenly higher versus the U.S. dollar amid new
optimism regarding the Japanese economic stimulus package,
thereby resulting in losses for the Fund's short yen
positions. Smaller currency losses were recorded from short
Swiss franc and German mark positions as the value of these
currencies also increased versus the U.S. dollar after
moving lower previously. In financial futures, losses were
recorded from short U.S. interest rate futures positions as
domestic bond prices increased during the last week of April
on benign inflation reports in the U.S. In commodities,
losses were recorded from long silver futures positions as
silver prices moved lower. Smaller losses were experienced
from trading energy and lumber futures. These losses were
partially offset by profits recorded in agricultural futures
from long positions in soybean oil and short positions in
soybean futures. Smaller gains recorded from long cocoa
futures positions, as cocoa prices increased, also helped to
offset a portion of the Fund's overall losses for the month.
While such periods of difficult performance can be extremely
trying, we encourage investors to remain focused on the long-
term and to view this investment in the context of your
overall portfolio.
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 forward markets, losses were recorded due to
trendless price movement in a majority of the markets traded
by the Fund. In financial futures, short-term volatility in
U.S. interest rate futures prices during the month resulted
in losses. Smaller losses were recorded from long European
and Australian bond futures positions as prices reversed
lower after trending higher previously, thus giving back a
small portion of recent months' profits in this sector. In
currencies, losses were recorded from short German mark and
Swiss franc positions as the value of these currencies
increased relative to the U.S. dollar. In metals, losses
were recorded from long positions in
<PAGE>
silver and gold futures, as well as from short copper
futures positions. Smaller losses were recorded in
energy futures trading due to a decline in natural gas
futures prices. A portion of these losses was offset by
gains recorded in soft commodities from short sugar and
coffee futures positions as prices in these markets moved
lower. Smaller losses were recorded in energy futures
trading due to a decline in natural gas futures prices. A
portion of these losses was offset by gains recorded in soft
commodities from short sugar and coffee futures positions as
prices in these markets moved lower. Smaller gains recorded
in agricultural futures positions from short positions in
corn and wheat futures, as well as from long soybean oil
futures positions, also mitigate the overall Fund losses for
the month.
As reported in the March 1998 monthly report, we will be
distributing a new Prospectus for the Spectrum Series Funds
which will reflect a number of changes for the Funds. These
changes will include anticipated reductions in brokerage
fees for all of the Spectrum Funds, certain enhancements to
the Spectrum Balanced Fund, a Trading Advisor change in
Spectrum Strategic and certain changes in the Trading
Advisor allocations in Spectrum Technical.
In anticipation of the changes to Spectrum Balanced, the
Fund has changed its name to Dean Witter Spectrum Global
Balanced L.P. Additionally, commencing June 1, 1998, RXR,
Inc., the Trading Advisor to Spectrum balanced, will add non-
U.S. stock index and bond futures to the balanced portfolio
trading approach currently utilizing U.S. stock index and
bond futures, thereby giving the Fund a more global
perspective.
In Spectrum Strategic, effective April 30, 1998, the General
Partner removed A. Gary Shilling & Co., Inc. ("Shilling") as
a Trading Advisor to the Fund. The assets previously
allocated to Shilling will not be traded during the month of
May 1998, but will continue to earn interest on 100% of the
assets and will not accrue any fees. Effective June 1,
1998, the assets formerly managed by Shilling will be
allocated to Stonebrook Capital Management, Inc. for
trading.
In spectrum Technical, commencing June 1, 1998, all assets
previously allocated to Chesapeake Capital Corporation's
("Chesapeake") Diversified Program will be traded pursuant
to Chesapeake's Diversified Program will be traded pursuant
to Chesapeake's Diversified 2XL Program at twice the normal
leverage to the Diversified Program. As a result,
Chesapeake will have its incentive fee increased from 15% to
19%. Additionally, all the assets previously allocated to
Chesapeake's Financial and Metals Program will be
reallocated among the Trading Advisors to Spectrum
Technical, including Chesapeake, at the discretion of the
General Partner.
In addition to the above-mentioned changes, we will be
adding a new Fund to the Spectrum Series of Funds, Dean
Witter Spectrum Select L.P. (formerly Dean Witter Select
Futures Fund L.P.). As part of the Dean Witter Spectrum
Series of Funds, Spectrum Select will be continuously-
offered for investment, similar to the other Funds in the
Spectrum Series. Additionally, as one of the Funds in the
Spectrum Series of Funds, investors also may exchange Units
of one Spectrum Fund for Units of Spectrum Select or any of
the other Spectrum Funds at any month-end without incurring
any redemption or other charges.
The General Partner believes that all of the foregoing
changes will be beneficial to Limited Partners.
Nonetheless, in view of these changes, Limited Partners are
reminded that, in accordance with the terms of each Fund's
Limited Partnership Agreement, Limited Partners have a right
to redeem their Units, and that Limited Partners owning more
than 50% of the outstanding Units of the Fund may vote to
remove and replace the General Partner and take certain
other actions, without the General Partner's consent (see
Section 15(C) of each Fund's Limited Partnership Agreement
on page A-17 of the Funds' April 25, 1997 Prospectus). With
regard to redemptions, because of the proposed changes, the
General Partner and Dean Witter Reynolds Inc. have
determined to waive any applicable redemption charges, as
well as the six month minimum holding period, for any Units
redeemed as of May 31 and June 30, 1998.
<PAGE>
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.
[CAPTION]
Funds Year Return
[S] [C] [C]
Spectrum Global Balanced
1994 (2 months) -
1.7%
1995 22.8%
1996 -3.7%
1997 18.2%
1998 (4 months)
4.2%
Inception-to-Date Return: 43.3%
Annualized Return:
10.9%
____________________________________________________________
_________________________
Spectrum Strategic
1994 (2 months)
0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 (4 months) -
9.2%
Inception-to-Date Return:
- -2.7%
Annualized Return: -.8%
____________________________________________________________
_________________________
Spectrum Technical
1994 (2 months) -
2.2%
1995 17.6%
1996 18.4%
1997 7.5%
1998 (4 months) -
4.1%
Inception-to-Date Return:
40.3%
Annualized Return: 10.2%
____________________________________________________________
_________________________
<PAGE>
<TABLE>
Statements of Operations
For the Month Ended April 30, 1998
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced
Percent of
April 1, 1998
Beginning
Amount Net Asset Value
$ %
REVENUES
<S> <C> <C>
Trading Profit (Loss):
Realized (121,503) (.42)
Net change in unrealized (367,879) (1.26)
Total Trading Results (489,382) (1.68)
Interest Income (DWR) 122,024 .42
Total Revenues (367,358) (1.26)
EXPENSES
Brokerage commissions (DWR) 119,015 .41
Management fees 30,361 .10
Total Expenses 149,376 .51
NET LOSS (516,734) (1.77)
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1998
(Unaudited)
Dean Witter Spectrum Global
Balanced
Units Amount Per Unit
$ $
<S> <C>
,c> <C>
Net Asset Value,
April 1, 1998 1,998,196.611 29,146,479 14.59
Net Loss - (516,734) (.26)
Redemptions (15,276.561) (218,913) 14.33
Subscriptions 138,938.392 1,990,987 14.33
Net Asset Value,
April 30, 1998 2,121,858.442 30,401,819 14.33
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, 1998
April 1, 1998
Beginning
Beginning
Amount Net Asset Value Amount Net Asset
Value
$ % $ %
<C> <C> <C>
<C>
(4,587,824) (7.33) (6,640,551) (3.43)
(1,949,024) (3.12) (1,119,479) (.58)
(6,536,848) (10.45) (7,760,030) (4.01)
199,441 .32 626,818 .32
(6,337,407) (10.13) (7,133,212) (3.69)
398,871 .64 1,232,438 .64
208,560 .33 644,412 .33
607,431 .97 1,876,850 . 97
(6,944,838) (11.10) 9,010,062 (4.66)
Dean Witter Spectrum Strategic Dean Witter Spectrum Technical
Units Amount Per Unit Units Amount Per Unit
$ $ $ $
<C> <C> <C> <C> <C> <C>
5,718,384.252 62,567,984 10.94 13,139,054.409 193,323,527 14.71
- (6,944,838) (1.21) - (9,010,062) (.68)
(75,724.232) (736,797) 9.73 (95,245.000) (1,336,287) 14.03
223,816.710 2,177,736 9.73 669,296.675 9,390,232 14.03
5,866,476.730 57,064,085 9.73 13,713,106.084 192,367,410 14.03
</TABLE>
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization , Dean Witter Spectrum Global Balanced L.P.
(formally known as 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").
Demeter is a wholly-owned subsidiary of Morgan Stanley Dean
Witter & Co. ("MSDW").
Effective June 1, 1998, a fourth partnership, Dean Witter
Spectrum Select L.P. ("Spectrum Select") will be added to
the Dean Witter Spectrum Series L.P.
On July 31, 1997, Dean Witter Reynolds Inc. ("DWR"), a
wholly-owned sub-sidiary of MSDW, closed the sale of its
institutional futures business and foreign currency trading
operations to Carr Futures Inc. ("Carr"), a sub-sidiary of
Credit Agricole Indosuez. Following the sale, Carr became
the commodity broker for most of the Partnership's
transactions and is the counterparty on the Partnership's
foreign currency trades. DWR will continue to serve as a
non-clearing commodity broker for the Partnership with Carr
providing all clearing services for Partnership
transactions.
Demeter is required to maintain a 1% minimum interest in the
equity of each 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 con-formity 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 each Partnership interest income
based upon 80% of its average daily Net Assets for the month
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.
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements -
(Continued)
Brokerage and Related Transaction Fees and Costs , Brokerage
fees for Spectrum Balanced are accrued at a monthly rate of
49/120 of 1% of the Net Assets as of the first day of each
month. Effective June 1, 1998, brokerage fees for Spectrum
Global Balanced will be reduced to a flat-rate monthly fee
of 1/12 of 4.60% of the Net Assets as of the first day of
each month.
Brokerage fees for Spectrum Strategic and Spectrum Technical
are accrued at a monthly rate of 51/80 of 1% of the Net
Assets as of the first day of each month. Effective June 1,
1998, brokerage fees for Spectrum Strategic and Spectrum
Technical will be reduced to a flat-rate monthly fee of 1/12
of 7.25% of the Net Assets as of the first day of each
month.
Such fees 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.
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.
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Continued)
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 pays brokerage commissions to DWR as
described in Note 1. Each Partnership's cash is on deposit
with DWR and Carr 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.
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 Global Balanced L.P.
RXR, Inc.
Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
A. Gary Shilling & Co., Inc.
Willowbridge Associates Inc.
Effective April 30, 1998, A. Gary Shilling & Co., Inc.
("Shilling") was terminated as an advisor to the
Partnership. The assets of the Partnership previously
allocated to Shilling will be allocated to Stonebrook
Capital Management Inc. effective June 1, 1998.
Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.
Chesapeake Capital Corporation
John W. Henry & Co. Inc. ("JWH")
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as
follows:
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Continued)
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.
4. 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.,
MSDW (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. On June 16,
1997, the plaintiffs in the above actions filed a
consolidated amended complaint, alleging, among other
things, that the defendants committed fraud, deceit,
negligent misrepresentation, various violations of the
California Corporations Code, intentional and negligent
breach of fiduciary duty, fraudulent and unfair business
practices, unjust enrichment, and conversion in the sale and
operation of the various limited partnership commodity
pools. Similar purported class actions were also filed on
September 18 and 20, 1996, 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
interests in various limited partnership commodity pools
sold by DWR. A consolidated and amended complaint in the
action pending in the Supreme Court of the State of New York
was filed on August 13, 1997, alleging that the defendants
committed fraud, breach of fiduciary duty, and negligent
misrepresentation in the sale and operation of the various
limited partnership commodity pools. On December 16, 1997,
upon motion of the plaintiffs, the action pending in the
Superior Court of the State of Delaware was voluntarily
dismissed without prejudice. 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
<PAGE>
Dean Witter Spectrum Series L.P.
Notes to Financial Statements
(Concluded)
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.
