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 Period ended September 30, 1997 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. 33-80146
DEAN WITTER SPECTRUM BALANCED L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3782232
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification
No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 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
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1997
(Unaudited) and December 31, 1996.....................2
Statements of Operations for the Quarters Ended
September 30, 1997 and 1996 (Unaudited)...............3
Statements of Operations for the Nine Months Ended
September 30, 1997 and 1996 (Unaudited)...............4
Statements of Changes in Partners' Capital for the
Nine Months ended September 30, 1997 and 1996
(Unaudited)...........................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1997 and 1996 (Unaudited)...............6
Notes to Financial Statements (Unaudited)......... 7-12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..13-19
Part II. OTHER INFORMATION
Item 1. Legal Proceedings..............................20-21
Item 2. Changes in Securities and Use of Proceeds......21-23
Item 5. Other Information.................................23
Item 6. Exhibits and Reports on Form 8-K..................24
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 23,505,606 19,127,125
Net unrealized gain on open contracts 658,398 216,593
Net option premiums (434,400) -
Total Trading Equity 23,729,604 19,343,718
Subscriptions receivable 564,924 85,483
Interest receivable (DWR) 99,787 191,569
Total Assets 24,394,315 19,620,770
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 173,241 801,425
Accrued brokerage commissions (DWR) 93,740 92,147
Accrued management fees 23,913 20,943
Total Liabilities 290,894 914,515
Partners' Capital
Limited Partners (1,751,564.185 and
1,591,356.003 Units, respectively) 23,856,623 18,499,873
General Partner (18,120.035 and 17,752.928
Units respectively) 246,798 206,382
Total Partners' Capital 24,103,421 18,706,255
Total Liabilities and Partners' Capital 24,394,315 19,620,770
NET ASSET VALUE PER UNIT 13.62 11.63
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 2,540,072 (105,867)
Net change in unrealized (320,750) 618,962
Total Trading Results 2,219,322 513,095
Interest Income (DWR) 301,778 239,747
Total Revenues 2,521,100 752,842
EXPENSES
Incentive fees 300,250 -
Brokerage commissions (DWR) 287,362 270,988
Management fees 70,611 58,073
Total Expenses 658,223 329,061
NET INCOME 1,862,877 423,781
NET INCOME ALLOCATION
Limited Partners 1,838,496 419,377
General Partner 24,381 4,404
NET INCOME PER UNIT
Limited Partners 1.09 .25
General Partner 1.09 .25
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 3,416,023 (1,295,898)
Net change in unrealized 441,805 392,002
Total Trading Results 3,857,828 (903,896)
Interest Income (DWR) 815,238 640,771
Total Revenues 4,673,066 (263,125)
EXPENSES
Brokerage commissions (DWR) 826,798 765,434
Incentive fees 300,250 -
Management fees 193,209 161,084
Total Expenses 1,320,257 926,518
NET INCOME (LOSS) 3,352,809 (1,189,643)
NET INCOME (LOSS ) ALLOCATION
Limited Partners 3,317,393 (1,177,344)
General Partner 35,416 (12,299)
NET INCOME (LOSS )PER UNIT
Limited Partners 1.99 (.94)
General Partner 1.99 (.94)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
Partners' Capital
December 31, 1995 1,222,168.050 $14,604,689 $149,811 $14,754,500
Offering of Units 576,197.228 6,369,931 60,000 6,429,931
Net Loss - (1,177,344) (12,299) (1,189,643)
Redemptions (141,944.882) (1,566,113) - (1,566,113)
Partners' Capital
September 30, 1996 1,656,420.396 $18,231,163 $197,512 $18,428,675
Partners' Capital
December 31, 1996 1,609,108.931 $18,499,873 $206,382 $18,706,255
Offering of Units 374,093.086 4,749,983 5,000 4,754,983
Net Income - 3,317,393 35,416 3,352,809
Redemptions (213,517.797) (2,710,626) - (2,710,626)
Partners' Capital
September 30, 1997 1,769,684.220 $23,856,623 $246,798 $24,103,421
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM BALANCED L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss): 3,352,809 (1,189,643)
Noncash item included in net income (loss):
Net change in unrealized (441,805) (392,002)
(Increase) decrease in operating assets:
Net option premiums 434,400 143,500
Interest receivable (DWR) 91,782 (18,249)
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) 1,593 18,738
Accrued management fees 2,970 5,522
Accrued incentive fees - (49,873)
Net cash provided by (used for) operating activities 3,441,749 (1,482,007)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of units 4,754,983 6,429,931
(Increase) decrease in subscriptions receivable (479,441) 1,005,520
Increase (decrease) in redemptions payable (628,184) 645,323
Redemptions of units (2,710,626) (1,566,113)
Net cash provided by financing activities 936,732 6,514,661
Net increase in cash 4,378,481 5,032,654
Balance at beginning of period 19,127,125 13,409,068
Balance at end of period 23,505,606 18,441,722
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER SPECTRUM BALANCED 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. The financial statements
and condensed notes herein should be read in conjunction with the
Partnership's December 31, 1996 Annual Report on Form 10K.
1. Organization
Dean Witter Spectrum Balanced L.P. (the "Partnership") is a
limited partnership organized to engage in the speculative
trading of futures and forward contracts, options on future
contracts and on physical commodities, and other commodity
interests (collectively, "futures interests"), including foreign
curren-cies, financial instruments, precious and industrial
metals, energy products and agriculturals. The general partner
for the Partnership, Demeter Management Corporation ("Demeter")
has retained RXR, Inc. as the trading manager of the Partnership.
The commodity broker for most of the Partnership's transactions
is Dean Witter Reynolds Inc. ("DWR"). Both Demeter and DWR are
wholly owned subsidiaries of Morgan Stanley, Dean Witter,
Discover & Co. ("MSDWD").
On July 31, 1997, DWR closed the sale of its institutional
futures business and foreign currency trading operations to Carr
Futures Inc. ("Carr"), a subsidiary of Credit Agricole
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Indosuez. Following the sale, Carr became the counterparty on
the Partnership's foreign currency trades. However, during a
transition period of about four months, DWR will continue to
perform certain services relating to the Partnership's futures
trading including clearance. After such transition period, DWR
will continue to serve as a non-clearing commodity broker for the
Partnership with Carr providing all clearing services for
Partnership transactions.
2. Summary of Significant Accounting Policies
Effective August 1, 1997, the flat-rate brokerage fee was reduced
from 5.50% per annum to 4.90% per annum.
3. Related Party Transactions
The 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 based on prevailing U.S.
Treasury Bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
4. Financial Instruments
The Partnership trades futures, options, forward contracts on
futures and related instruments in interest rates, stock indices,
commodities, currencies, petroleum and precious metals. Futures
and forwards represent contracts for delayed delivery of an
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. At September 30, 1997 and December 31, 1996,
open contracts were:
Contract or Notional Amount
September 30, 1997 December 31,
1996 $ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 62,473,000 18,417,000
Commitments to Sell 2,516,000 13,206,000
Options Written 11,454,000 -
Commodity Futures:
Commitments to Purchase 2,665,000 4,064,000
Commitments to Sell 4,535,000 4,337,000
Foreign Futures:
Commitments to Purchase 18,776,000 61,568,000
Commitments to Sell 23,033,000 4,802,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 7,320,000 8,070,000
Commitments to Sell 5,477,000 17,843,000
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward
commitments to purchase and to sell the same currency on the same
date in the future. These commitments are economically
offsetting, but are not offset in the forward market until the
settlement date.
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The net unrealized gains on open contracts are reported as a
component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition and totaled $658,398 and
$216,593 at September 30, 1997 and December 31, 1996,
respectively. Of the $658,398 net unrealized gain on open
contracts at September 30, 1997, $587,739 related to exchange-
traded forward currency contracts and $70,659 related to off-
exchange-traded forward currency contracts. Of the $216,593 net
unrealized gain on open contracts at December 31, 1996, $292,886
related to exchange-traded futures contracts and $(76,293)
related to off-exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1997 and December 31, 1996 mature through March
1998 and June 1997, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 1997
and December 31, 1996 mature through December 1997 and January
1997, respectively. The contract amounts in the above table
represent the Partnership's extent of involvement in the
particular class of financial instrument, but not the credit risk
associated with counterparty non-performance. The credit risk
associated with these instruments is limited to the amounts
reflected in the Partnership's Statements of Financial Condition.
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The Partnership also has credit risk because either DWR or Carr
acts as the futures commission merchant or the counterparty, with
respect to most of the Partnership's assets. Exchange-traded
futures and options contracts are marked to market on a daily
basis, with variations in value settled on a daily basis. DWR,
as the futures commission merchant for all of the Partnership's
exchange-traded futures and options contracts, is required
pursuant to regulations of the Commodity Futures Trading
Commission ("CFTC") to segregate from its own assets and for the
sole benefit of its commodity customers all funds held by DWR
with respect to exchange-traded futures and options contracts
including an amount equal to the net unrealized gain on all open
futures contracts, which funds totaled $23,993,356 and
$19,420,011 at September 30, 1997 and December 31, 1996,
respectively. 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 contracts, to perform.
Carr's parent, Credit Agricole Indosuez, has guaranteed Carr's
obligations to the Partnership.
<PAGE>
DEAN WITTER SPECTRUM BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
For the nine months ended September 30, 1997 and the year ended
December 31, 1996, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 36,881,000 13,658,000
Options on Financial Futures 1,567,000 3,118,000
Commodity Futures 4,978,000 3,409,000
Foreign Futures 29,462,000 24,159,000
Off-Exchange-Traded Forward
Currency Contracts 12,863,000 19,290,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 24,615,000 8,611,000
Options on Financial Futures 375,000 2,717,000
Commodity Futures 3,317,000 2,528,000
Foreign Futures 31,242,000 11,045,000
Off-Exchange-Traded Forward
Currency Contracts 18,038,000 16,158,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in futures
interest trading accounts with DWR and Carr, and are used by the
Partnership as margin to engage in futures interest trading. DWR
and Carr hold such assets in either designated depositories or in
securities approved by the CFTC for investment of customer funds.
The Partnership's assets held by DWR and Carr may be used as
margin solely for the Partnership's trading. Since the
Partnership's sole purpose is to trade in futures interests, it
is expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in futures interests may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits". Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price of a particular futures interest
has increased or decreased by an amount equal to the "daily
limit", positions in such futures interest can neither be taken
nor liquidated unless traders are willing to effect trades at or
within the limit. Futures interest prices have occasionally
moved the daily limit for several consecutive days with little or
no trading. Such market conditions could prevent the Partnership
<PAGE>
from promptly liquidating its futures interests and result in
restrictions on redemptions. However, since the commencement of
trading by the Partnership, there has never been a time when
illiquidity has affected a material portion of the Partnership's
assets.
There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.
Capital Resources. The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions and sales of
additional Units of Limited Partnership Interest in the future
will affect the amount of funds available for investments in
futures interests in subsequent periods. As redemptions are at
the discretion of Limited Partners, it is not possible to
estimate the amount and therefore, the impact of future
redemptions.
Results of Operations
For the Quarter and Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership's total
<PAGE>
trading revenues including interest income were $2,521,100.
During the third quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant gains were
recorded in the stock and bond portions of the balanced portfolio
as domestic stock and bond futures prices moved higher during
July and September. Additional gains were recorded in the
managed futures portion of the portfolio from long positions in
both U.S. and international interest rate futures as prices in
these markets also moved higher during July and September. In
currencies, profits were recorded from transactions involving the
German mark relative to the U.S. dollar and other major
currencies during July and September. Additional currency gains
were recorded from short positions in the New Zealand dollar,
French franc and Spanish peseta during July. Smaller gains were
recorded in energy futures as long natural gas futures positions
profited from a dramatic upward price move during August and
September. These gains were partially offset by losses recorded
from trendless price movement in soft commodities and
agricultural futures throughout a majority of the quarter. Total
expenses for the quarter were $658,223, resulting in net income
of $1,862,877. The value of an individual Unit in the
Partnership increased from $12.53 at June 30, 1997 to $13.62 at
September 30, 1997.
For the nine months ended September 30, 1997, the Partnership's
total trading revenues including interest income were $4,673,066.
During the first nine months of the year, the Partnership posted
<PAGE>
an increase in Net Asset Value per Unit. The most significant
gains were recorded in the managed futures portion of the
portfolio in currencies as the value of the U.S. dollar
strengthened versus most other currencies during January,
February and July. As a result, currency gains were recorded
from short positions in the Singapore dollar, Italian lira and
Spanish peseta. Currency gains were also recorded from
transactions involving the German mark, French franc and Japanese
yen. Additional gains were recorded from long S&P 500 Index
futures positions in the stock portion of the balanced portfolio
as U.S. equity prices increased to record levels. Smaller
profits were recorded from long positions in U.S. and
international interest rate futures as prices in these markets
moved higher during July and September. These gains were
partially offset by losses recorded from choppy price movement in
agricultural futures and soft commodities during the first three
quarters. Smaller losses recorded from short-term volatility in
crude oil futures prices during the second and third quarters
also offset a portion of overall Partnership gains for the first
nine months of the year. Total expenses for the period were
$1,320,257 resulting, in net income of $3,352,809. The value of
an individual Unit in the Partnership increased from $11.63 at
December 31, 1996 to $13.62 at September 30, 1997.
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading revenues including interest income were $752,842. During
<PAGE>
the third quarter, the Partnership posted an increase in Net
Asset Value per Unit. The most significant gains were recorded
in the managed futures portion of the Partnership's balanced
portfolio from long Australian, Japanese and European interest
rate futures positions as international interest rate futures
prices moved steadily higher between July and September. In the
currency markets, gains were recorded during July from long
positions in the German mark, as well as in the Swiss and French
francs, as the value of these currencies increased sharply
relative to the U.S. dollar late in the month. Additional gains
were recorded in the energy markets from long crude oil futures
positions as prices trended higher during the quarter. In the
bond portion of the balanced portfolio, gains experienced in
September from an upward move in prices more than offset losses
recorded during July and August as U.S. interest rate futures
prices moved in a choppy pattern. A portion of these gains was
offset by losses experienced from short-term volatile price
movement in both agricultural and soft commodities prices
throughout most of the quarter. Smaller losses were recorded in
the stock portion of the
balanced portfolio as U.S. stock prices moved lower during July.
Total expenses for the quarter were $329,061, resulting in net
income of $423,781. The value of an individual Unit in the
Partnership increased from $10.88 at June 30, 1996 to $11.13 at
September 30, 1996.
For the nine months ended September 30, 1996, the Partnership's
total trading losses including interest income were $263,125.
<PAGE>
During the first nine months, the Partnership posted a decrease
in Net Asset Value per Unit. The most significant losses were
recorded in the bond portion of the balanced portfolio from long
positions in U.S. Treasury bond futures as prices moved lower
during February and into March. Smaller losses were recorded in
the bond portion during the second quarter and early in the third
quarter as prices moved without consistent direction. Additional
losses were recorded in the stock portion of the balanced
portfolio as U.S. stock prices moved in a choppy pattern during
the period between March and July. In the managed futures
component of the portfolio, the most significant losses were
recorded in soft commodities as coffee, sugar and cotton prices
moved in a trendless pattern for a majority of the first nine
months of the year.
Additional losses were recorded as base metals prices moved
without consistent direction during the first and second
quarters. A portion of the overall losses in the managed futures
component was offset by gains recorded from long global interest
rate futures positions as prices increased steadily during the
third quarter. Additional gains were recorded from long corn
futures positions as prices increased during the second quarter
and from long crude oil futures positions as prices trended
higher during the third quarter. Gains recorded in the currency
markets during the third quarter also helped to mitigate losses
for the Partnership for the first nine months of the year. Total
expenses for the period were $926,518, resulting in a net loss of
<PAGE>
$1,189,643. The value of an individual Unit in the Partnership
decreased from $12.07 at December 31, 1995 to $11.13 at September
30, 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 19, 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., MSDWD (all such parties
referred to hereafter as the "Dean Witter Parties"), certain
other limited partnership commodity pools of which Demeter is the
general partner, and certain trading advisors to those pools. On
June 16, 1997, the plaintiffs in the above actions filed a
consolidated amended complaint. 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 Delaware, New Castle County,
against the Dean Witter Parties and certain trading advisors on
behalf of all purchasers of interests 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.
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,
<PAGE>
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.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic"); Dean
Witter Spectrum Technical L.P. ("Spectrum Technical"); and Dean
Witter Spectrum Balanced L.P. ("Spectrum Balanced" and,
collectively with Spectrum Strategic and Spectrum Technical, the
"Partnerships") collectively registered 10,000,000 Units of
Limited Partnership Interest ("Units") pursuant to a Registration
Statement on Form S-1, which became effective on September 15,
1994 (the "Registration Statement") (SEC File Number 33-80146).
While such Units were not allocated among the Partnerships at
that time, they were subsequently allocated for convenience
purposes as follows: Spectrum Strategic 4,000,000, Spectrum
Technical 4,000,000 and Spectrum Balanced 2,000,000. The
Partnerships registered an additional 20,000,000 Units pursuant
to a new Registration Statement on Form S-1, which become
effective on January 31, 1996 (SEC File Number 333-00494); such
units were allocated among the Partnerships as follows: Spectrum
Strategic 6,000,000, Spectrum Technical 9,000,000 and Spectrum
Balanced
<PAGE>
5,000,000. The Partnerships registered an additional 8,500,000
Units pursuant to another Registration Statement on Form S-1,
which become effective on April 30, 1996 (SEC File Number 333-
3222); such Units were allocated among the Partnerships as
follows: Spectrum Strategic 2,500,000, Spectrum Technical
5,000,000 and Spectrum Balanced 1,000,000. The managing
underwriter for the Partnerships is DWR.
The "Initial Offering" by the Partnerships, when Units were sold
for $10 each, commenced on September 15, 1994 and closed on
November 2, 1994; a "Continuing Offering" began thereafter,
during which Units are being sold at monthly closings as of the
last day of each month at a price equal to 100% of the Net Asset
Value of a Unit as of the date of such monthly closing.
Through September 30, 1997, 2,246,460.889 Units were sold,
leaving 5,753,539.111 Units unsold as of October 1, 1997. The
aggregate offering amount registered was $89,740,000, based upon
the offering prices of $10 per Unit for the 2,000,000 Units
registered on September 15, 1994; $11.73 per Unit for the
5,000,000 Units registered on January 31, 1996; and $11.09 per
Unit for the 1,000,000 Units registered on April 30, 1996. The
aggregate price of the Units sold through September 30, 1997 is
$25,310,882.
Since DWR has paid all expenses of the Initial and Continuing
Offerings, and no other expenses are chargeable against proceeds,
100% of the proceeds of the offering have been applied to the
<PAGE>
working capital of the Partnership for use in accordance with the
"Use of Proceeds" section of the Prospectus included as part of
each Registration Statement.
Item 5. OTHER INFORMATION
On July 21, 1997, MSDWD, the sole shareholder of Demeter,
appointed a new Board of Directors consisting of Richard M.
DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph G. Siniscalchi,
Edward C. Oelsner III, and Robert E. Murray.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dean Witter Spectrum Balanced L.P.
(Registrant)
By: Demeter Management Corporation
(General Partner)
November 12, 1997 By: /s/ Patti L. Behnke
Patti L. Behnke
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 infomration extracted from Dean
Witter Spectrum Balanced L.P. and is qualified in its entirety by
references to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<CASH> 23,505,606
<SECURITIES> 0
<RECEIVABLES> 664,711<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,394,315<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 24,394,315<F3>
<SALES> 0
<TOTAL-REVENUES> 4,673,066<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,320,257
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,352,809
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,352,809
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,352,809
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables includes subscriptions receivable of $564,924 and interest
receivable of $99,787.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $658,398 and net option premiums of $(434,400).
<F3>Liabilities include redemptions payable of $173,241, accrued brokerage
commissions of $93,740 and accrued management fees of $23,913.
<F4>Total revenue includes realized trading revenue of $3,416,023, net change
in unrealized of $441,805 and interest income of $815,238.
</FN>
</TABLE>
