Morgan Stanley Dean Witter Spectrum Series
Monthly Report
April 1999
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Morgan Stanley Dean
Witter Spectrum Funds as of April 30, 1999 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $16.64 4.08%
Spectrum Select $24.64 3.69%
Spectrum Strategic $12.26 1.98%
Spectrum Technical $16.41 7.20%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, gains were recorded during April primarily in the global
stock index futures component from long German stock index futures as
prices increased in reaction to record highs on Wall Street and helped by
robust performance in Tokyo. Additional gains were recorded during early
April from long S&P 500 Index futures positions as domestic equity prices
moved higher in response to an interest rate cut by the European Central
Bank aimed at boosting their region's economy, strong sales at domestic
retailers and optimism about earnings from financial services companies.
In the currency markets, gains were recorded from long New Zealand dollar
positions as its value strengthened versus the U.S. dollar due to signs of
recovery in the Pacific Rim and improving commodity prices. In the energy
markets, gains were recorded from long crude oil futures positions as oil
prices continued to move higher to their highest levels since December 1997
due largely to declines in inventory levels and growing confidence that oil
exporting countries are cutting production. In the metals markets, gains
were recorded from long copper futures positions as copper prices soared
during mid-month to the highest level since late December on a wave of fund
buying. A portion of the Fund's overall gains was offset by losses in the
agricultural markets from long corn futures positions as prices regressed
early in the month in reaction to reports by the USDA that the expected
corn surplus will be one of the biggest in years and from declining demand
from Asian markets. Later in the month corn prices fell amid technical
factors and on reports of favorable planting conditions. In the global
interest rate futures markets, losses were experienced from long Australian
interest rate futures positions as prices declined due to decreasing demand
from several key Japanese institutional investors.
In Spectrum Select, a Fund managed by multiple trading advisors who employ
long-term technical trend-following trading strategies, gains were recorded
during April primarily in the currency markets from long Canadian dollar
positions as its value strengthened versus the U.S. dollar on increased
optimism that higher commodity prices will boost Canada's resources-
oriented economy. In the global stock index futures markets, gains were
recorded from long Hang Seng Index futures positions as Hong Kong equity
prices increased on selective buying of blue chips on speculation that
local banks would cut interest rates. In the energy markets, gains were
recorded from long futures positions in crude oil and its refined products,
heating oil and unleaded gas, as oil prices continued to move higher due to
declines in inventory levels and growing confidence that oil exporting
countries are cutting production. In soft commodities, gains were recorded
from short cocoa futures positions as cocoa prices declined to a 5 1/2-year
low in reaction to reports of a surplus in supplies, declining demand and a
promising West African crop. A portion of the Fund's overall gains was
offset by losses experienced in the agricultural markets from short
positions in soybeans and soybean oil futures as prices increased on
reports of forecasts calling for unfavorable weather in both Argentina and
Brazil which could slow harvesting. In the global interest rate futures
markets, losses were experienced from short U.S. interest rate futures
positions as prices moved suddenly higher in reaction to an encouraging
U.S. employment report and larger-than-expected rate cut by the European
Central Bank.
In Spectrum Strategic, a Fund managed by multiple trading advisors who
employ fundamental trading methodologies, gains were recorded during April
primarily from long crude oil futures positions as prices moved to their
highest levels since December 1997 due to declines in inventory levels and
growing confidence that oil exporting countries are cutting production. In
the metals markets, gains were recorded from long copper futures positions
as copper prices soared during mid-month to their highest level since late
December on a wave of fund buying. In the currency markets, gains were
<PAGE>
recorded from long Canadian dollar positions as its value strengthened to
an 11-month high versus the U.S. dollar on increased optimism that higher
commodity prices will boost Canada's resources-oriented 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
prices moved suddenly higher in reaction to an encouraging U.S. employment
report and larger-than-expected rate cut by the European Central Bank. In
the global stock index futures markets, losses were experienced from short
S&P 500 Index futures positions as U.S. equity prices reached record highs
in response to an interest rate cut by the European Central Bank aimed at
boosting their region's economy, strong sales at domestic retailers and
optimism about earnings from financial services companies. In the
agricultural markets, losses were experienced early in the month from long
wheat futures positions as prices fell due to higher-than-expected stocks
as reported by the USDA.
Effective May 1, 1999, Spectrum Strategic added Allied Irish Capital
Management, Ltd. ("AICM") as a Trading Advisor, and allocated to AICM the
assets previously managed by Stonebrook Capital Management, Inc.
("Stonebrook"), approximately $6.8 million. AICM will be paid the same
management and incentive fees as Stonebrook.
In Spectrum Technical, a Fund managed by multiple trading advisors who
employ long-term technical trend-following trading systems, gains were
recorded during April primarily in the currency markets from short
positions in the Swiss franc and the European common currency as the value
of these European currencies weakened relative to the U.S. dollar due
primarily to the lack of economic growth in the European community, the
ongoing crisis in Yugoslavia and strong economic data out of the U.S. In
the global stock index futures markets, gains were recorded from long
Nikkei Index futures positions as Japanese equity prices were boosted by
gains on Wall Street, as well as by hopes that the Japanese government
might take more measures to stimulate their economy. In the energy
markets, gains were recorded from long futures positions in crude oil and
its refined products, heating oil and unleaded gas, as oil prices continued
to move higher to their highest levels since December 1997 due largely to
declines in inventory levels and growing confidence that oil exporting
countries are cutting production. In soft commodities, gains were recorded
from short sugar futures positions as prices fell to a new 13-year low in
anticipation of a huge sugar crop amid declining demand and an already
large global surplus. A portion of the Fund's overall gains was offset by
losses in the metals markets from short gold futures positions as prices
were pushed higher in reaction to the military conflict in Yugoslavia and
speculative short covering. In the agricultural markets, losses were
experienced from long corn futures positions as prices regressed early in
the month in reaction to reports by the USDA that the expected corn surplus
will be one of the biggest in years and from declining demand from Asian
markets. Later in the month corn prices fell due to aggressive selling by
commodity investment funds amid technical factors and on reports of
favorable planting conditions.
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 (4 months) 4.0%
Inception-to-Date Return: 66.4%
Annualized Return: 12.0%
___________________________________________________________________________
__________
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 (4 months)
3.5%
Inception-to-Date Return: 146.4%
Annualized Return 12.3%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 (4 months) 6.1%
Inception-to-Date Return: 22.6%
Annualized Return: 4.6%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 (4 months)
1.8%
Inception-to-Date Return: 64.1%
Annualized Return: 11.7%
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended April 30, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter
Morgan Stanley Dean Witter
Spectrum Global
Balanced Spectrum Select
Percent of
Percent of
April 1, 1999 April 1,
1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 28,550 0.06 411,121
0.20
Net change in unrealized 2,216,852 4.58 8,378,762
4.05
Total Trading Results 2,245,402 4.64 8,789,883
4.25
Interest Income (DWR) 176,737 0.37 610,156
0.30
Total Revenues 2,422,139 5.01 9,400,039
4.55
EXPENSES
Incentive fees 215,651 0.45 -
- -
Brokerage fees (DWR) 185,371 0.38 1,249,204
0.61
Management fees 50,373 0.10
516,912 0.25
Total Expenses 451,395 0.93 1,766,116
0.86
NET INCOME 1,970,744 4.08 7,633,923
3.69
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1999
(Unaudited)
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Global Balanced Spectrum Select
.
Units Amount Per Unit Units
Amount Per Unit
$ $ $
$
<S> <C> <C> <C>
<C> <C> <C>
Net Asset Value,
April 1, 1999 3,025,303.073 48,357,974 15.98 8,702,769.150
206,764,629 23.76
Net Income - 1,970,744 0.66 -
7,633,923 0.88
Redemptions (21,442.092) (356,796) 16.64 (74,074.001)
(1,825,183) 24.64
Subscriptions 132,460.262 2,204,139 16.64 181,199.697
4,464,761 24.64
Net Asset Value,
April 30, 1999 3,136,321.243 52,176,061 16.64 8,809,894.846
217,038,130 24.64
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended April 30, 1999
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Strategic
Spectrum Technical .
Percent of
Percent of
April 1, 1999 April 1,
1999
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C>
Trading Profit (Loss):
Realized (4,554,254) (6.11)
(1,413,328) (0.56)
Net change in unrealized 6,455,108 8.66 21,240,542
8.40
Total Trading Results 1,900,854 2.55 19,827,214
7.84
Interest Income (DWR) 211,435 0.28
733,823 0.29
Total Revenues 2,112,289 2.83 20,561,037
8.13
EXPENSES
Incentive fees (DWR) - - -
- -
Brokerage fees (DWR) 408,530 0.55 1,526,994
0.60
Management fees (DWR) 225,396 0.30 842,480
0.33
Total Expenses 633,926 0.85 2,369,474
0.93
NET INCOME 1,478,363 1.98 18,191,563
7.20
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 1999
(Unaudited)
Morgan Stanley Dean Witter Morgan
Stanley Dean Witter
Spectrum Strategic Spectrum
Technical .
Units Amount Per Unit Units
Amount Per Unit
$ $ $
$
<S> <C> <C> <C>
<C> <C> <C>
Net Asset Value,
April 1, 1999 6,205,584.154 74,577,938 12.02 16,509,679.184
252,743,953 15.31
Net Income - 1,478,363 0.24 -
18,191,563 1.10
Redemptions (96,047.289) (1,177,540) 12.26 (171,160.974)
(2,808,752) 16.41
Subscriptions 125,356.681 1,536,873 12.26 315,496.461
5,177,297 16.41
Net Asset Value,
April 30, 1999 6,234,893.546 76,415,634 12.26 16,654,014.671
273,304,061 16.41
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Spectrum Global
Balanced L.P. (formerly, Dean Witter Spectrum Global Balanced
L.P.) ("Spectrum Global Balanced"), Morgan Stanley Dean Witter
Spectrum Select L.P. (formerly, Dean Witter Spectrum Select
L.P.) ("Spectrum Select"), Morgan Stanley Dean Witter Spectrum
Strategic L.P. (formerly, Dean Witter Spectrum Stratgegic L.P.)
("Spectrum Strategic") and Morgan Stanley Dean Witter Spectrum
Technical L.P. (formerly, 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.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
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.
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>
Morgan Stanley 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 Partnership and at 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:
Morgan Stanley Dean Witter Spectrum Global Balanced L.P.
RXR, Inc.
Morgan Stanley Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Morgan Stanley Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
Willowbridge Associates Inc.
Spectrum Strategic terminated Stonebrook Capital Management,
Inc. as a Trading Advisor on March 4, 1999. On May 1, 1999,
Spectrum Strategic added Allied Irish Capital Management, Ltd.
("AICM") as a Trading Advisor, and will allocate to AICM the
assets previously managed by Stonebrook.
Morgan Stanley Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Compensation to the trading advisors by the Partnerships
consists of manage-ment fees and incentive fees 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
1/4 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.
