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 quarterly period ended September 30, 1998 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. 0-26340
DEAN WITTER SPECTRUM GLOBAL 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 Corporation
Two World Trade Center, 62 Fl., New York, NY 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 GLOBAL BALANCED L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S>
<C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1998
(Unaudited) and December 31, 1997..........................2
Statements of Operations for the Quarters Ended
September 30, 1998 and 1997 (Unaudited)....................3
Statements of Operations for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 1998 and 1997
(Unaudited)................................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited)....................6
Notes to Financial Statements (Unaudited)...............7-
12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.......13-21
Part II. OTHER INFORMATION
Item 1. Legal Proceedings......................................22
Item 2. Changes in Securities and Use of Proceeds...........22-23
Item 6. Exhibits and Reports on Form 8-K.......................23
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 36,637,801 24,954,956
Net unrealized gain on open contracts3,103,654 681,559
Net option premiums - (458,150)
Total Trading Equity 39,741,455 25,178,365
Subscriptions receivable 1,146,113 625,710
Interest receivable (DWR) 152,258 118,949
Total Assets 41,039,826 25,923,024
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 272,457 114,576
Accrued brokerage fees (DWR) 144,346 99,762
Incentive fees payable 124,260 -
Accrued management fee 39,225 25,450
Total Liabilities 580,288 239,788
Partners' Capital
Limited Partners (2,631,010.353 and
1,849,054.344 Units, respectively) 40,028,433 25,418,875
General Partner (28,335.924 and
19,230.497 Units respectively) 431,105 264,361
Total Partners' Capital 40,459,538 25,683,236
Total Liabilities and Partners' Capital 41,039,826 25,92
3,024
NET ASSET VALUE PER UNIT 15.21 13.75
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (443,833) 2,540,072
Net change in unrealized 3,076,158 (320,750)
Total Trading Results 2,632,325 2,219,322
Interest Income (DWR) 441,782 301,778
Total Revenues 3,074,107 2,521,100
EXPENSES
Brokerage fees (DWR) 412,473 287,362
Incentive fees 124,258 300,250
Management fees 112,088 70,611
Total Expenses 648,819 658,223
NET INCOME 2,425,288 1,862,877
NET INCOME ALLOCATION
Limited Partners
2,398,826
1,838,496
General Partner
26,462 24,381
NET INCOME PER UNIT
Limited Partners
.93 1.09
General Partner
.93 1.09
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit:
Realized 1,376,863 3,416,023
Net change in unrealized 2,422,095 441,805
Total Trading Results 3,798,958 3,857,828
Interest Income (DWR) 1,168,924 815,238
Total Revenues 4,967,882 4,673,066
EXPENSES
Brokerage fees (DWR) 1,105,224 826,798
Management fees 290,828 193,209
Incentive fees 152,442 300,250
Total Expenses 1,548,494 1,320,257
NET INCOME 3,419,388 3,352,809
NET INCOME ALLOCATION
Limited Partners 3,382,644 3,317,393
General Partner 36,744 35,416
NET INCOME PER UNIT
Limited Partners 1.46 1.99
General Partner 1.46 1.99
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
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, 19971,769,684.220 $23,856,623 $246,798
$24,103,421
Partners' Capital
December 31, 1997 1,868,284.841 $25,418,875 $264,361
$25,683,236
Offering of Units 965,847.145 13,746,040 130,000
13,876,040
Net Income - 3,382,644 36,744
3,419,388
Redemptions (174,785.709) (2,519,126) -
(2,519,126)
Partners' Capital
September 30, 19982,659,346.277 $40,028,433 $431,105
$40,459,538
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income 3,419,388 3
,352,809
Noncash item included in net income:
Net change in unrealized (2,422,095) (
441,805)
(Increase) decrease in operating assets:
Net option premiums (458,150) 434,400
Interest receivable (DWR) (33,309) 91,782
Increase in operating liabilities:
Accrued brokerage fees (DWR) 44,584 1,593
Incentive fees payable 124,260 -
Accrued management fees 13,775
2,970
Net cash provided by operating activities 688,453 3
,441,749
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of units 13,876,040 4
,754,983
Increase in subscriptions receivable(520,403) (
479,441)
Increase (decrease) in redemptions payable157,881 (
628,184)
Redemptions of units (2,519,126) (
2,710,626)
Net cash provided by financing activities 10,994,392
936,732
Net increase in cash 11,682,845 4
,378,481
Balance at beginning of period 24,954,956 1
9,127,125
Balance at end of period 36,637,801 2
3,505,606
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER SPECTRUM GLOBAL 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 of Dean Witter Spectrum
Global Balanced L.P. (the "Partnership"). The financial
statements and condensed notes herein should be read in
conjunction with the Partnership's December 31, 1997 Annual
Report on Form 10-K.
1. Organization
Dean Witter Spectrum Global Balanced L.P. is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts and forward contracts on foreign
currencies (collectively, "futures interests"). The Partnership
is one of the Dean Witter Spectrum Series of funds, comprised of
the Partnership, Dean Witter Spectrum Strategic L.P., Dean
Witter Spectrum Technical L.P. and Dean Witter Spectrum Select
L.P. The general partner is Demeter Management Corporation
("Demeter"). The non-clearing commodity broker is Dean Witter
Reynolds Inc. ("DWR"), an affiliate of Demeter. The clearing
commodity broker is Carr Futures Inc. ("Carr"), providing
clearing and execution services. Demeter has retained as the
trading manager RXR Inc. (the "Trading Manager"). Both Demeter
and DWR are wholly-owned subsidiaries of Morgan Stanley Dean
Witter & Co. ("MSDW").
<PAGE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Summary of Significant Accounting Policies
Effective June 1, 1998, the monthly brokerage fee was reduced to
1/12 of 4.60% of the Net Assets as of the first day of the month.
3. Related Party Transactions
The 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 based on current 13-week U.S.
Treasury bill rates. Brokerage expenses incurred by the
Partnership are paid to DWR.
4. Financial Instruments
The Partnership trades futures, options, and forward contracts
in interest rates, stock indices, commodities and currencies.
Futures, options, and forwards represent contracts for delayed
delivery of an 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, 1998 and
December 31, 1997, open contracts were:
<PAGE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Contract or Notional Amount
September 30, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 98,765,000 40,675,000
Commitments to Sell 922,000 6,721,000
Commodity Futures:
Commitments to Purchase 2,662,000 -
Commitments to Sell 1,415,000 5,168,000
Foreign Futures:
Commitments to Purchase 256,349,000 45,574,000
Commitments to Sell 11,625,000 26,176,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 11,356,000 2,436,000
Commitments to Sell 4,411,000 10,218,000
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.
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 $3,103,654 and
$681,559 at September 30, 1998 and December 31, 1997, respect-
ively.
<PAGE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $3,103,654 net unrealized gain on open contracts at
September 30, 1998, $2,613,331 related to exchange-traded futures
contracts and $490,323 related to off-exchange-traded forward
currency contracts.
Of the $681,559 net unrealized gain on open contracts at December
31, 1997, $657,913 related to exchange-traded futures contracts
and $23,646 related to off-exchange-traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1998 and December 31, 1997 mature through December
1998 and March 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at September 30, 1998
and December 31, 1997 mature through December 1998 and March
1998, respectively.
The contract amounts in the above table represent the
Partnership's extent of involvement in a 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.
The Partnership also has credit risk because DWR and Carr act as
the futures commission merchants or the counterparties, with
<PAGE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
respect to most of the Partnership's assets. Exchange-traded
futures contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. Each of DWR and
Carr, as a futures commission merchant for the Partnership's
exchange-traded futures contracts, is required, pursuant to
regulations of the Commodity Futures Trading Commission ("CFTC"),
to segregate from their own assets, and for the sole benefit of
their commodity customers, all funds held by them with respect to
exchange-traded futures contracts, including an amount equal to
the net unrealized gain on all open futures contracts, which
funds, in the aggregate, totaled $39,251,132 and $25,612,869 at
September 30, 1998 and December 31, 1997, 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 such contracts, to perform. Carr's parent,
Credit Agricole Indosuez, has guaranteed to the Partnership
payment of the net liquidating value of the transactions in the
Partnership's account with Carr (including foreign currency
contracts).
<PAGE>
DEAN WITTER SPECTRUM GLOBAL BALANCED L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
For the nine months ended September 30, 1998 and the year ended
December 31, 1997, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 52,736,000 11,823,000
Options on Financial Futures - 1,199,000
Commodity Futures 1,154,000 3,540,000
Foreign Futures 98,335,000 44,050,000
Off-Exchange-Traded Forward
Currency Contracts 17,440,000 17,339,000
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 39,908,000 11,661,000
Options on Financial Futures 1,206,000 2,398,000
Commodity Futures 4,414,000 3,535,000
Foreign Futures 28,444,000 26,146,000
Off-Exchange-Traded Forward
Currency Contracts 12,716,000 16,655,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - Assets of the Partnership are deposited with DWR as
non-clearing broker and Carr as clearing broker in separate
futures interest trading accounts established for the Trading
Manager and are used by the Partnership as margin to engage in
futures interest trading. Such assets are held in either non-
interest bearing bank accounts 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 for 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 interests 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.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. 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. Future redemptions,
exchanges and sales of additional Units of Limited Partnership
Interest will affect the amount of funds available for investment
in futures interests in subsequent periods. Since they are at
the discretion of Limited Partners, it is not possible to
estimate the amount, and therefore, the impact of future
redemptions, exchanges or sales of additional Units.
Results of Operations
For the Quarter and Nine Months Ended September 30, 1998
For the quarter ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$3,074,107 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in the global bond
futures component of the balanced portfolio from long positions
<PAGE>
in U.S. Treasury note futures and Treasury bond futures.
Domestic bond prices soared higher during August as investors
flocked to these "safe havens" amid the political and economic
upheaval in Russia and other emerging market countries. During
September, bond prices continued to climb due to the scandal
plaguing the White House, the anticipation of the Federal
Reserve's late month interest rate cut and reported losses by
several major hedge funds. Additional profits were recorded from
long European and Japanese bond futures as prices in these
markets also moved higher amid global economic and political
uncertainty. Long S&P 500 Index futures positions produced
losses for the stock index futures component as domestic equity
prices plunged during mid-July and again during August on fears
that the troubles plaguing Russia, Japan, and Latin America would
have a negative effect on the U.S. economy. In currencies, long
positions in the Spanish peseta resulted in smaller gains during
September as the value of the U.S. dollar weakened versus other
currencies due to the scandal in Washington. Trading in the
managed futures component provided mixed results during the
quarter. In the agricultural markets, short positions in corn
and lean hog futures were profitable during August as prices in
these markets continued to trend lower amid large supplies and
weaker exports. In metals, losses resulted from trading base
metals as prices moved in a short-term volatile pattern during
July. In soft commodities, additional losses were incurred from
long cotton futures positions as cotton prices finished July
sharply lower. Smaller losses were experienced in the energy
<PAGE>
markets during September. Total expenses for the three months
ended September 30, 1998 were $648,819, resulting in net income
of $2,425,288. The value of an individual Unit in the
Partnership increased from 14.28 at June 30, 1998 to 15.21 at
September 30, 1998.
For the nine months ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$4,967,882 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded during the third quarter
in the global bond futures component of the balanced portfolio
from long positions in U.S. interest rate futures, particularly
five-year Treasury note futures. Additional gains in this sector
were recorded from long European bond futures positions during a
majority of the first quarter, as well as during August and
September. The recent worldwide economic and political
instability created an extremely positive environment for bond
prices during the third quarter, thus resulting in gains for the
Partnership's long positions. The stock index futures component
contributed smaller gains from long S&P 500 Index futures
positions as domestic stock prices climbed to record highs during
the first and second quarters. Overall trading results in the
managed futures component were mixed. Short corn and livestock
futures positions produced smaller profits as prices fell in
these markets during late August. Gains were recorded during the
first quarter from short crude oil futures positions as oil
prices declined on reports of a potential agreement between the
U.N. and Iraq. A portion of the Partnership's overall gains was
<PAGE>
offset by losses experienced in the soft commodities and metals
markets. Long cotton futures positions resulted in losses as
cotton prices reversed lower during July on news of improved
weather conditions. Short positions in base metals futures early
in the third quarter proved unfavorable as prices moved higher
early in July. As a result of this move higher, new long
positions were established in these markets which resulted in
additional losses as base metals prices regained their downward
momentum. Smaller year-to-date losses were experienced in the
currency markets primarily from transactions involving the
British pound as its value moved without consistent direction
relative to other currencies. Total expenses for the nine
months ended September 30, 1998 were $1,548,494, resulting in net
income of $3,419,388. The value of an individual Unit in the
Partnership increased from 13.75 at December 31, 1997 to 15.21 at
September 30, 1998.
For the Quarter and Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership
recorded total revenues including interest income of $2,521,100
and 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
<PAGE>
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 three months
ended September 30, 1997 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
recorded total trading revenues including interest income of
$4,673,066 and posted 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
<PAGE>
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 nine months
ended September 30, 1997 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.
Year 2000 Problem - Commodity pools, like financial and business
organizations and individuals around the world, depend on the
smooth functioning of computer systems. Many computer systems in
use today cannot recognize the computer code for the year 2000,
but revert to 1900 or some other date. This is commonly known as
the "Year 2000 Problem". The Partnership could be adversely
affected if computer systems used by it or any third party with
whom it has a material relationship do not properly process and
calculate date-related information and data concerning dates on
or after January 1, 2000. Such a failure could have a negative
impact on the handling or determination of futures trades and
prices and the services provided the Partnership.
<PAGE>
MSDW began its planning in response to the Year 2000 Problem in
1995 and currently has several hundred employees working on such
response. It has developed its own Year 2000 compliance plan to
deal with the problem and had the plan approved by the company's
executive management, Board of Directors and Information
Technology Department. Demeter is coordinating with MSDW in
taking steps that both believe are reasonably designed to address
the Year 2000 Problem with respect to Demeter's computer systems
that relate to the Partnership. This includes hardware and
software upgrades, systems consulting and computer maintenance.
Beyond the challenge facing internal computer systems, the
systems failure of any of the third parties with whom the
Partnership has a material relationship - the futures exchanges
and clearing organizations through which it trades, Carr, or the
Trading Manager - could result in a material financial risk to
the Partnership. Regarding the futures exchanges, all U.S.
futures exchanges will be subject to the monitoring of the CFTC
for their Year 2000 preparedness and the major foreign futures
exchanges are also expected to be subject to market-wide testing
of their Year 2000 compliance during 1999. With respect to Carr
and the Trading Manager, Demeter intends to monitor their
progress throughout 1999 in their Year 2000 compliance and, where
applicable, to test its external interface with Carr and the
Trading Manager.
Finally, MSDW has begun developing various "contingency plans" in
the event that the systems of such third parties fail, and
<PAGE>
Demeter intends to consult closely with MSDW in implementing
those plans. MSDW has also recently reported that its
development of such contingency plans is proceeding on schedule.
Despite the best efforts of both Demeter and MSDW, however, there
can be no assurance that the above steps will be sufficient to
avoid any adverse impact to the Partnership, whether from
failures in their own computer systems or those of Carr, the
Trading Manager or any other third party.
Risks Associated with the Euro - On January 1, 1999, eleven
countries in the European Union intend to establish fixed
conversion rates on their existing sovereign currencies and
convert to a common single currency (the "euro"). During a three-
year transition period, the existing sovereign currencies will
continue to exist but only as a fixed denomination of the euro.
Conversion to the euro will prevent the Trading Manager from
trading in certain currencies and thereby limit its ability to
take advantage of potential market opportunities that might
otherwise have existed had separate currencies been available to
trade, and could result in losses with respect to those
positions.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Previously filed. See Form 10-Q for the quarter ended March 31,
1998.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Partnership, Dean Witter Spectrum Strategic L.P. ("Spectrum
Strategic") and Dean Witter Spectrum Technical L.P. ("Spectrum
Technical") 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 (SEC File Number 33-
80146). While such Units were not allocated among the Partnership,
Spectrum Strategic and Spectrum Technical at that time, they were
subsequently allocated for convenience purposes as follows:
Spectrum Strategic 4,000,000, Spectrum Technical 4,000,000 and the
Partnership 2,000,000. The Partnership, Spectrum Strategic and
Spectrum Technical collectively registered an additional 20,000,000
Units pursuant to a new Registration Statement on Form S-1, which
became effective on January 31, 1996 (SEC File Number 333-00494);
such units were allocated as follows: Spectrum Strategic 6,000,000,
Spectrum Technical 9,000,000 and the Partnership 5,000,000. The
Partnership, Spectrum Strategic and Spectrum Technical collectively
registered an additional 8,500,000 Units pursuant to another
Registration Statement on Form S-1, which became effective on April
30, 1996 (SEC File Number 333-3222); such Units were allocated as
follows: Spectrum Strategic 2,500,000, Spectrum Technical
5,000,000 and the Partnership 1,000,000. The managing underwriter
for the
<PAGE>
Partnership is DWR.
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, 1998, 3,333,324.238 Units were sold, leaving
4,666,675.762 Units unsold as of September 30, 1998. The aggregate
price of the Units sold through September 30, 1998 was $43,169,026.
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
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 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K - No reports have been filed for the quarter
ended September 30, 1998.
<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 Global
Balanced L.P.
(Registrant)
By: Demeter Management Corporation
(General Partner)
November 12, 1998 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
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 information extracted from Dean
Witter Spectrum Global Balanced L.P. and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 36,637,801
<SECURITIES> 0
<RECEIVABLES> 1,298,371<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 41,039,826<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 41,039,826<F3>
<SALES> 0
<TOTAL-REVENUES> 4,967,882<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,548,494
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,419,388
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,419,388
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,419,388
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscriptions receivable of $1,146,113 and
interest receivable of $152,258.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $3,103,654.
<F3>Liabilities include redemptions payable of $272,457, accrued
brokerage fees of $144,346, management fee of $39,225 and
incentive fees payable of $124,260.
<F4>Total revenue includes realized trading revenue of $1,376,863,
net change in unrealized of $2,422,095 and interest income of
$1,168,924.
</FN>
</TABLE>
