Dean Witter Spectrum Series
Monthly Report
March 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Dean Witter Spectrum
Funds as of March 31, 1999 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $15.98 0.04%
Spectrum Select $23.76 -2.49%
Spectrum Strategic $12.02 -3.45%
Spectrum Technical $15.31 -2.51%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, relatively flat performance was recorded during the month
as gains in the managed futures component offset losses experienced in the
international stock and bond components. Gains were recorded in the energy
markets from long positions in crude and gas oil futures as oil prices
surged on reports of a confirmation of OPEC production cuts and on supply
concerns caused by an explosion at a U.S. refinery. In the global stock
index futures component, gains were recorded from long Nikkei Index futures
positions as Japanese equity prices were pushed higher by positive economic
factors such as low interest rates, stable overseas markets, relatively
stable exchange rates and an agreement to inject public funds into the
indebted banking sector. Additional gains were recorded from long S&P 500
Index futures positions as domestic equity prices increased in reaction to
Wall Street reaching a major milestone during mid-month, as the Dow Jones
Industrial Average hit 10,000 for the first time. In the currency markets,
gains were recorded from long Mexican peso positions as its value
strengthened versus the U.S. dollar on general optimism about Mexico's
economy. A portion of the Fund's overall gains was offset by losses in the
global interest rate futures markets from short U.S. interest rate futures
positions as domestic bond prices rose during mid-month due to encouraging
productivity data released by the U.S. Labor Department and on comments by
Alan Greenspan that there are no obvious signs of emerging inflation
pressures. In the agricultural markets, losses were recorded from short
wheat futures positions as prices moved higher in response to reports that
the Clinton Administration may announce the lifting of agricultural trade
sanctions on Iran, Libya and North Korea.
In Spectrum Select, a Fund managed by multiple trading advisors who employ
long-term technical trend-following trading systems, losses were recorded
during March primarily in the global interest rate futures markets from
short U.S. interest rate futures positions as domestic bond prices rose
during mid-month due to encouraging productivity data released by the U.S.
Labor Department and on comments by Alan Greenspan that there are no
obvious signs of emerging inflation pressures. In the agricultural
markets, losses were recorded from short corn futures positions as prices
moved higher earlier in the month in a technical and seasonally driven
rally, as well as a lack of heavy producer selling. In the metals markets,
losses were experienced from long silver futures positions as prices
declined mid-month after Berkshire Hathaway's annual report failed to
provide any new information on the company's silver positions. A portion
of the Fund's overall losses was offset by gains recorded in the energy
markets from long futures positions in crude oil and its refined products,
unleaded gas and heating oil, as oil prices moved significantly higher.
The substantial recovery in oil prices during the month was largely
attributed to the news that both OPEC and non-OPEC countries had reached an
agreement to cut total output by approximately two million barrels a day
beginning April 1st. In the currency markets, gains were recorded from
short Swiss franc positions as its value weakened versus the U.S. dollar as
investors reasoned that the United States is the safest place to invest
during the crisis in Kosovo due to the fact that it is geographically
removed from the actual conflict and possesses a powerful military force.
In the global stock index futures markets, gains were recorded from long
S&P 500 Index futures positions as equity prices increased due to
widespread favorable sentiment in the U.S. economy and robust trading
momentum.
In Spectrum Strategic, a Fund managed by multiple trading advisors who
employ fundamental trading methodologies, losses were recorded during March
due primarily to losses in the global stock index futures markets from
short S&P 500 Index futures positions as equity prices increased in
reaction to Wall Street reaching a major milestone mid-month, as the Dow
Jones Industrial Average hit 10,000 for the first time. In the global
interest rate futures markets, losses were experienced from short German
government bond futures positions as prices increased on reports that
Germany's
<PAGE>
industrial production showed a sharp increase, creating hopes that Europe's
biggest economy could be strengthening. In the currency markets, losses
were recorded from short Japanese yen positions as the value of the yen
strengthened relative to the U.S. dollar due to a repatriation of capital
to Japan before fiscal year-end and positive investor reaction to the Bank
of Japan's decision to leave the official discount rate unchanged. Smaller
losses were experienced in the metals markets from long silver futures
positions as prices declined during mid-month after Berkshire Hathaway's
annual report failed to provide any new information on the company's silver
positions. A portion of the Fund's overall losses was offset by gains in
the energy markets from long crude oil positions as prices climbed to their
highest level since October 1st. This strong upward move in energy prices
was largely attributed to confirmation of OPEC production cuts and supply
concerns caused by an explosion at a U.S. refinery.
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, losses were recorded
during March primarily in the global interest rate futures markets from
long Japanese government bond futures positions as bond prices dropped
during mid-month following comments by Bank of Japan Governor Masaru Hayami
that he expected interest rates in Japan to rise over time. Losses were
also recorded earlier in the month from short U.S. interest rate futures
positions as domestic bond prices rose due to encouraging productivity data
released by the U.S. Labor Department and on comments by Alan Greenspan
that there are no obvious signs of emerging inflation pressures. In the
metals markets, losses were experienced from long silver futures positions
as prices declined mid-month after Berkshire Hathaway's annual report
failed to provide any new information on the company's silver positions.
Losses were also recorded from short aluminum futures positions as prices
increased during mid-month as good demand in the United States prompted
shipments from Europe, therefore decreasing Europe's supply and later in
the month from newly established long aluminum futures as prices moved
lower on profit-taking. In the agricultural markets, losses were recorded
from short corn futures positions as prices moved higher earlier in the
month in a technical and seasonally driven rally, as well as a lack of
heavy producer selling. A portion of the Fund's overall losses was offset
by gains in the currency markets from short Swiss franc positions as its
value weakened versus the U.S. dollar as investors reasoned that the United
States is the safest place to invest during the crisis in Kosovo due to the
fact that it is geographically removed from the actual conflict and
possesses a powerful military force. Gains were also recorded from short
euro positions as the value of the U.S. dollar hit lifetime highs versus
the European common currency on the strength of the U.S. economy, concerns
pertaining to the economic health of Europe and Japan and growing
uncertainty about the military action in Yugoslavia. In the energy
markets, gains were recorded from long futures positions in crude oil and
its refined products, unleaded gas, gas oil and heating oil, as oil prices
moved significantly higher on production cuts. In the global stock index
futures markets, gains were recorded from long Nikkei Index futures
positions as Japanese equity prices were pushed higher by positive economic
factors in Japan such as low interest rates, an easing credit stance,
relatively stable exchange rates and the agreement to inject public funds
into the indebted banking sector.
Please be advised that during the month of April the General Partner will
change each Partnership's name as follows: Dean Witter Spectrum Global
Balanced L.P. will become Morgan Stanley Dean Witter Spectrum Global
Balanced L.P., Dean Witter Spectrum Select L.P. will become Morgan Stanley
Dean Witter Spectrum Select L.P., Dean Witter Spectrum Strategic L.P. will
become Morgan Stanley Dean Witter Spectrum Strategic L.P., and Dean Witter
Spectrum Technical L.P. will become Morgan Stanley Dean Witter Spectrum
Technical L.P.
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.
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
President
Demeter Management Corporation
General Partner
<PAGE>
<TABLE>
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 -3.6%
1997 18.2%
1998 16.4%
1999 (3 months) -0.1%
Inception-to-Date Return: 59.8%
Annualized Return: 11.2%
___________________________________________________________________________
__________
Spectrum Select
1991 (5 months) 31.2%
1992 -14.4%
1993 41.6%
1994 -5.1%
1995 23.6%
1996 5.3%
1997 6.2%
1998 14.2%
1999 (3 months) -
0.2%
Inception-to-Date Return: 137.6%
Annualized Return 12.0%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 (3 months) 4.1%
Inception-to-Date Return: 20.2%
Annualized Return: 4.3%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 (3 months) -
5.0%
Inception-to-Date Return: 53.1%
Annualized Return: 10.1%
___________________________________________________________________________
__________
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended March 31, 1999
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced Dean Witter Spectrum Select
Percent of
Percent of
March 1, 1999 March 1,
1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 233,752 0.49 2,679,849
1.28
Net change in unrealized (154,760) (0.33) (6,708,244)
(3.20)
Total Trading Results 78,992 0.16 (4,028,395)
(1.92)
Interest Income (DWR) 172,833 0.36
600,880 0.29
Total Revenues 251,825 0.52
(3,427,515) (1.63)
EXPENSES
Brokerage fees (DWR) 181,812 0.38 1,265,987
0.61
Management fees 49,405 0.10
523,857 0.25
Total Expenses 231,217 0.48
1,789,844 0.86
NET INCOME (LOSS) 20,608 0.04
(5,217,359) (2.49)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended March 31, 1999
(Unaudited)
Dean Witter Spectrum Global Balanced Dean
Witter Spectrum Select .
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
March 1, 1999 2,968,500.816 47,429,666 15.98 8,600,100.588
209,542,583 24.37
Net Income (Loss) - 20,608 - -
(5,217,359) (0.61)
Redemptions (19,980.947) (319,296) 15.98 (73,416.853)
(1,744,384) 23.76
Subscriptions 76,783.204 1,226,996 15.98 176,085.415
4,183,789 23.76
Net Asset Value,
March 31, 1999 3,025,303.073 48,357,974 15.98 8,702,769.150
206,764,629 23.76
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended March 31, 1999
(Unaudited)
<CAPTION>
Dean Witter
Spectrum Strategic Dean Witter Spectrum Technical.
Percent of
Percent of
March 1, 1999 March 1,
1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized (653,117) (0.83)
4,833,681 1.88
Net change in unrealized (1,571,386) (2.05)
(9,597,775) (3.74)
Total Trading Results (2,206,503) (2.88)
(4,764,094) (1.86)
Interest Income (DWR) 226,509 0.30
721,075 0.28
Total Revenues (1,979,994) (2.58)
(4,043,019) (1.58)
EXPENSES
Brokerage fees (DWR) 426,135 0.56 1,549,644
0.60
Management fees 234,351 0.31 854,976
0.33
Total Expenses 660,486 0.87 2,404,620
0.93
NET INCOME (LOSS) (2,640,480) (3.45) (6,447,639)
(2.51)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended March 31, 1999
(Unaudited)
Dean Witter Spectrum Strategic Dean Witter
Spectrum Technical
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
March 1, 1999 6,154,204.716 76,600,837 12.45 16,333,408.376
256,492.887 15.70
Net Income (Loss) - (2,640,480) (0.43) -
(6,447,639) (0.39)
Redemptions (61,215.652) (735,812) 12.02 (162,826.717)
(2,492,877) 15.31
Subscriptions 112,595.090 1,353,393 12.02 339,097.525
5,191,582 15.31
Net Asset Value,
March 31, 1999 6,205,584.154 74,577,938 12.02 16,509,679.184
252,743,953 15.31
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Dean Witter Spectrum Global Balanced L.P.
("Spectrum Global Balanced"), Dean Witter Spectrum Select L.P.
("Spectrum Select"), 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 (collectively,
"futures interests"). The general partner for each 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. Both
Demeter and DWR are wholly-owned subsidiaries of Morgan Stanley
Dean Witter & Co. ("MSDW").
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.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from those estimates.
Revenue Recognition - Futures interests 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" (as defined in the
limited partnership agreements), for the month in the case of
Spectrum Select, Spectrum Strategic and Spectrum Technical and
100% in the case of Spectrum Global 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 to the Partnership on futures 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 Global Balanced are accrued at a flat monthly
rate of 1/12 of 4.60% (a 4.60% annual rate) of the Net Assets
as of the first day of each month.
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a flat monthly rate of 1/12
of 7.25% (a 7.25% annual rate) of the Net Assets as of the
first day of each month.
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Such fee covers all brokerage fees, 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 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 as of the
close of business on the last 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 redeemed on or prior to the last day of the twelfth month
after such Units were purchased will be subject to a redemption
charge equal to 2% of the Net Asset Value of a Unit on the date
of such redemption. Units redeemed after the last day of the
twelfth month and on or prior to the last day of the twenty-
fourth month after which such Units were purchased will be
subject to a redemption charge equal to 1% of the Net Asset
Value of a Unit on the date of such redemption. Units redeemed
after the last day of the twenty-fourth month after which such
Units were purchased will not be subject to a redemption
charge. The foregoing redemptions charges will be paid to DWR.
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
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 - Spectrum Global Balanced,
Spectrum Strategic and Spectrum Technical will terminate on
December 31, 2035 and Spectrum Select will terminate on
December 31, 2025 regardless of 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 fees to DWR as described in
Note 1. Each 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 as
described in Note 1.
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 Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
Stonebrook Capital Management, Inc. ("Stonebrook")
Willowbridge Associates Inc.
Spectrum Strategic terminated Stonebrook Capital Management,
Inc. as a Trading Advisor on March 4, 1999. On May 1, 1999,
Spectrum Strategic will add Allied Irish Capital Management,
Ltd. ("AICM") as a Trading Advisor, and will allocate to AICM
the assets previously managed by Stonebrook.
Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc. ) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as follows:
Management Fee - The management fee for Spectrum Global
Balanced is accrued at a rate of 5/48 of 1% of the Net Assets
on the first day of each month (a 1.25% annual rate).
The management fee for Spectrum Technical is accrued at a 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).
The management fee for Spectrum Select is accrued at a rate of
one fourth of 1% per month of the Net Assets allocated to each trading
advisor on the first day of each month (a 3% annual rate).
The management fee for Spectrum Strategic is accrued at a rate
of 1/12 of 4% of the Net Assets allocated to each of Blenheim
and Willowbridge on the first day of each month, and 1/12 of 3%
of the Net Assets allocated to Stonebrook on the first day of
each month (annual rates of 4% and 3% respectively).
Incentive Fee - Spectrum Global Balanced, Spectrum Strategic
and Spectrum Select pay a monthly incentive fee equal to 15% of
the "Trading Profits" as defined in their Limited Partnership
Agreements, experienced with respect to each trading advisor's
allocated Net Assets as of the end of each calendar month.
Spectrum Technical pays a monthly incentive fee equal to 15% of
the Trading Profits experienced with respect to the Net Assets
allocated to Campbell and JWH and 19% of the Trading Profits
experienced with respect to the Net Assets allocated to
Chesapeake as of the end of each calendar month.
For all Partnerships when Trading Losses are incurred, no
incentive fee will be paid in subsequent months until all such
losses are recovered. Cumulative trading losses are adjusted
on a pro-rata basis for the net amount of each months
subscriptions and redemptions.
