Morgan Stanley Dean Witter Spectrum Series
Monthly Report
March 2000
Dear Limited Partner:
The Net Asset Value per Unit for each of the five Morgan Stanley Dean
Witter Spectrum Funds as of March 31, 2000 was as follows:
Funds N.A.V. % change for month
Spectrum Commodity $ 7.65 0.86%
Spectrum Global Balanced $16.62 3.10%
Spectrum Select $21.68 -2.09%
Spectrum Strategic $12.41 -2.02%
Spectrum Technical $14.68 -1.50%
In general, the performance disparity between the Funds in the Spectrum
Series is due to the portfolio structure and trading approaches unique to
each fund. Spectrum Global Balanced, a balanced portfolio of stocks, bonds
and managed futures, recorded profits primarily from long positions in
global interest rate and stock index futures. Spectrum Commodity, formerly
Morgan Stanley Dean Witter Tangible Asset Fund L.P., recorded gains
primarily from long positions in the agricultural and livestock markets.
Spectrum Select and Spectrum Technical, both technically-based multi-
manager funds, experienced losses from long positions in the energy and
soft commodities markets, as well as trading in currencies and global stock
indices. Both Spectrum Select and Spectrum Technical were able to mitigate
these losses by recording gains in U.S. and European interest rate futures.
Spectrum Strategic, a fund managed by multiple trading advisors who employ
fundamental trading methodologies, incurred losses primarily in the
currency markets from short positions in the Japanese yen earlier in the
month and in the metals markets, specifically from long aluminum futures
positions. Spectrum Strategic was able to offset a portion of these losses
by recording gains from short positions in the energy markets.
Global interest rate futures prices, which had moved in a choppy sideways
pattern during January and February, increased during the second half of
March as fears of drastic interest rate hikes by the world's central banks
subsided and investors found solace from stock market volatility in fixed
income vehicles. Consequently, profits were recorded in Spectrum Global
Balanced, Spectrum Select, Spectrum Strategic and Spectrum Technical
(Spectrum Commodity participates solely in the traditional commodities
markets) from long positions in U.S. and European interest rate futures.
These gains were partially offset by losses incurred from long positions in
Japanese government bond futures as prices moved lower early in the month.
The price volatility previously seen in the interest rate futures markets
took to the global equity markets as prices fluctuated on concerns
regarding recent valuation disparities between "old economy" and "new
economy" stocks. Overall, Spectrum Global Balanced recorded a profit
within this market sector, while Spectrum Select, Spectrum Strategic and
Spectrum Technical each experienced varying degrees of losses.
In the commodities markets, oil prices, which had trended higher during
1999 and the first two months of 2000, reversed lower during March amid
speculation regarding future oil production levels. As a result, a portion
of previously recorded profits from long positions were given back in
Spectrum Commodity, Spectrum Global Balanced, Spectrum Select and Spectrum
Technical. Spectrum Strategic, the fundamentally-based traded fund, was
able to record profits in the energy markets from newly established short
positions. In soft commodities, trendless price movement in several
markets resulted in smaller losses for Spectrum Select and Spectrum
Technical. Spectrum Commodity, formerly Morgan Stanley Tangible Asset Fund
L.P., was profitable in the commodities markets as gains were recorded from
long futures positions in corn, soybeans, soybean related products and lean
hog futures as prices increased. These gains were partially offset by
losses incurred from the aforementioned decline in energy prices and a
downward move in cotton prices.
<PAGE>
In currencies, results were mixed as the value of the Japanese yen, which
had weakened versus the U.S. dollar since the start of the year, reversed
higher. As a result, each of the Spectrum Series Funds, with the exception
of Spectrum Commodity (which does not participate in the currency markets),
experienced losses from long yen positions. The value of the euro, which
has primarily weakened versus the U.S. dollar since its introduction in
January 1999, declined further during late March, thus resulting in
mitigating gains for Spectrum Select, Spectrum Technical and Spectrum
Global Balanced.
Effective March 7, 2000, we added two new funds to the Series: Morgan
Stanley Dean Witter Spectrum Currency L.P. and Morgan Stanley Dean Witter
Spectrum Commodity L.P. Spectrum Currency will participate exclusively in
the global currency markets and utilize John W. Henry & Company, Inc. and
Sunrise Capital Partners, LLC. These two trading advisors will use
technical trend-following trading programs to participate in world
currencies via the futures and interbank markets. Spectrum Commodity
features a long-only, broadly diversified, actively managed portfolio of
traditional commodities. The fund's trading advisor, Morgan Stanley Dean
Witter Commodities Management, Inc., uses a technical approach to investing
that seeks to benefit from supply and demand within these markets.
Additionally, as two of the Funds in the Spectrum Series of Funds,
investors who have been Limited Partners for at least six months may
exchange Units of one Spectrum Fund for Units of Spectrum Commodity or
Spectrum Currency or any of the other Spectrum Funds at any month-end
without incurring any redemption or other charges.
The General Partner has determined to adjust the allocation of those Net
Assets traded by John W. Henry & Company, Inc. among the investment
programs currently employed by John W. Henry & Company, Inc. within
Spectrum Technical. Commencing with the March 31, 2000 monthly closing, $6
million (approximately 2.3% of the Partnership's total Net Assets) were
reallocated from The Original Investment Program into The Financial and
Metals Portfolio. Additionally, any redemption out of Spectrum Technical
will be allocated 50% to Campbell & Company, Inc., 50% to Chesapeake
Capital Corporation, and 0% to John W. Henry & Company, Inc.
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
Chairman
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 each the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for each
Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
<CAPTION>
Funds Year Return
<S> <C> <C>
Spectrum Commodity
1998 -34.3%
1998 15.8%
2000 (3 months) 0.5%
Inception-to-Date Return: -23.5%
Annualized Return: -11.2%
___________________________________________________________________________
__________
Spectrum Global Balanced
1994 (2 months) -1.7%
1995 22.8%
1996 -3.6%
1997 18.2%
1999 16.4%
1999 0.7%
2000 (3 months) 3.1%
Inception-to-Date Return: 66.2%
Annualized Return: 9.8%
___________________________________________________________________________
__________
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
- -7.6%
2000 (3 months) -1.5%
Inception-to-Date Return: 116.8%
Annualized Return 9.3%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999
37.2%
2000 (3 months) -21.7%
Inception-to-Date Return: 24.1%
Annualized Return: 4.1%
</TABLE>___________________________________________________________________
__________________
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999
- -7.5%
2000 (3 months) -1.5%
Inception-to-Date Return: 46.8%
Annualized Return: 7.4%
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended March 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Global
Balanced _ Spectrum Select
Percent of Percent of
Percent of
March 1, 2000 March 1, 2000
March 1, 2000
Beginning Beginning
Beginning
Amount Net Asset Value Amount Net Asset
Value Amount Net Asset Value
$ % $ %
$ %
REVENUES
<S> <C> <C>
<C> <C> <C> <C>
Trading profit (loss):
Realized 810,441 3.57 660,626 1.14
10,505,748 4.89
Net change in unrealized (566,398) (2.50) 1,144,580
1.97 (13,964,519) (6.49)
Total Trading Results 244,043 1.07 1,805,206 3.11
(3,458,771) (1.60)
Interest Income (DWR) 85,776 0.38 274,230 0.47
793,136 0.37
Total Revenues 329,819 1.45 2,079,436 3.58
(2,665,635) (1.23)
EXPENSES
Brokerage fees (DWR) 68,985 0.30 222,236 0.38
1,299,244 0.61
Management fees 47,250 0.21 60,391 0.10
537,617 0.25
Service fees 18,901 0.08 -
- - - - .
Total Expenses 135,136 0.59 282,627 0.48
1,836,861 0.86
NET INCOME (LOSS) 194,683 0.86 1,796,809 3.10
(4,502,496) (2.09)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended March 31, 2000
(Unaudited)
Morgan Stanley Dean Witter Morgan Stanley Dean
Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Global
Balanced Spectrum Select .
Units Amount Per Unit Units Amount
Per Unit Units Amount Per Unit
$ $ $ $
<S> <C> <C> <C>
<C> <C> <C> <C> <C> <C>
Net Asset Value,
March 1, 2000 2,988,760.484 22,680,028 7.59 3,596,575.045
57,975,363 16.12 9,711,263.855 215,047,249 22.14
Net Income (Loss) - 194,683 0.06 -
1,796,809 0.50 - (4,502,496) (0.46)
Redemptions (48,215.724) (368,850) 7.65 (116,560.333)
(1,937,233) 16.62 (182,858.562) (3,964,374) 21.68
Subscriptions 11,189.544 85,600 7.65 52,332.703
869,770 16.62 236,994.614 5,138,043 21.68
Net Asset Value,
March 31, 2000 2,951,734.304 22,591,461 7.65 3,532,347.415
58,704,709 16.62 9,765,399.907 211,718,422 21.68
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 March 31, 2000
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley
Dean Witter
Spectrum Strategic
Spectrum Technical .
Percent of Percent of
March 1, 2000 March 1, 2000
Amount Net Asset Value Amount
Net Asset Value
$ % $
%
REVENUES
<S> <C> <C> <C>
<C>
Trading profit (loss):
Realized (5,621,394) (6.29) 12,510,733
4.65
Net change in unrealized 4,322,382 4.84 (15,181,548)
(5.65)
Total Trading Results (1,299,012) (1.45) (2,670,815)
(1.00)
Interest Income (DWR) 319,779 0.36 994,128
0.37
Total Revenues (979,233) (1.09) (1,676,687)
(0.63)
EXPENSES
Brokerage fees (DWR) 539,748 0.60 1,624,086
0.60
Management fees 282,097 0.33 896,047
0.33
Service fees - - -
- - .
Total Expenses 821,845 0.93 2,520,133
0.93
NET INCOME (LOSS) (1,801,078) (2.02) (4,196,820)
(1.56)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended March 31, 2000
(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,
March 1, 2000 7,051,903.952 89,337,621 12.67 18,030,653.739
268,814,245 14.91
Net Income (Loss) - (1,801,078) (0.26) -
(4,196,820) (0.23)
Redemptions (108,776.855) (1,349,921) 12.41 (313,430.517)
(4,601,160) 14.68
Subscriptions 132,849.574 1,648,663 12.41 189,232.537
2,777,933 14.68
Net Asset Value,
March 31, 2000 7,075,976.671 87,835,285 12.41 17,906,455.759
262,794,198 14.68
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 Commodity
L.P. ("Spectrum Commodity," formerly Morgan Stanley Tangible
Asset Fund L.P.), Morgan Stanley Dean Witter Spectrum Global
Balanced L.P. ("Spectrum Global Balanced"), Morgan Stanley Dean
Witter Spectrum Select L.P. ("Spectrum Select"), Morgan Stanley
Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic") and
Morgan Stanley Dean Witter Spectrum Technical L.P. ("Spectrum
Technical"), (individually, a "Partnership", or collectively,
the "Partnerships"), are limited partnerships organized to
engage primarily in the speculative trading of futures and
forward contracts, options on futures contracts, physical
commodities and other commodity interests, including, but not
limited to foreign currencies, financial instruments, metals,
energy and agricultural products (collectively, "futures
interests").
The general partner for each Partnership is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker for
Spectrum Global Balanced, Spectrum Select, Spectrum Strategic
and Spectrum Technical is Dean Witter Reynolds, Inc. ("DWR")
and an unaffiliated clearing commodity broker, Carr Futures
Inc. ("Carr"), provides clearing and execution services. The
commodity brokers for Spectrum Commodity are Morgan Stanley &
Co. Incorporated ("MS & Co.") and Morgan Stanley & Co.
International Limited ("MSIL"). Morgan Stanley Dean Witter
Commodities Management, Inc. ("MSDWC") is the trading advisor
to Spectrum Commodity. Demeter, DWR, MS& Co., MSDWC and MSIL
are wholly-owned subsidiaries of Morgan Stanley Dean Witter &
Co.
Demeter is required to maintain a 1% minimum interest in the
equity of each Partnership and income (losses) are shared by
Demeter and the Limited Partners based upon their proportional
ownership interests.
Use of Estimates - The financial statements are prepared in
accordance with generally accepted accounting principles, which
require management to make estimates and assumptions that
affect the reported amounts in the financial statements and
related disclosures. Management believes that the estimates
utilized in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates.
Revenue Recognition - Futures interests are open commitments
until settlement date. They are valued at market on a daily
basis and the resulting net change in unrealized gains and
losses is reflected in the changes in unrealized profits
(losses) on open contracts from one period to the next in the
statements of operations. Monthly, DWR pays interest income on
80% of the month's average daily "Net Assets" (as defined in
the limited partnership agreements) of Spectrum Select,
Spectrum Strategic and Spectrum Technical, and 100% in the case
of Spectrum Global Balanced. MS & Co. credits Spectrum
Commodity at each month-end with interest income on 80% of the
Partnership's average daily Net Assets for the month. The
interest rates used are equal to a prevailing rate on U.S.
Treasury bills. For purposes of such interest payments, Net
Assets do not include monies due the Partnerships on futures
interests, but not actually received.
Net Income (Loss) per Unit - Net income (loss) per unit of
limited partnership interest ("Unit(s)") is computed using the
weighted average number of Units outstanding during the period.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Brokerage and Related Transaction Fees and Costs - Brokerage
fee for Spectrum Commodity is accrued at a flat monthly rate of
1/12 of 3.65% (a 3.65% annual rate) of Net Assets as of the
first day of each month.
Brokerage fee for Spectrum Global Balanced is accrued at a flat
monthly rate of 1/12 of 4.60% (a 4.60% annual rate) of 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 Net Assets as of the first
day of each month.
Such fees currently cover 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.
Service Fee - Spectrum Commodity pays Demeter a monthly service
fee equal to 1/12 of 1% (a 1% annual rate) of Net Assets as of
the first day of each month.
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 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 are borne by the Limited Partners or the Partnership.
DWR will pays 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 of any month that is at least 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 Partnerships, 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 Agreements)
without paying additional charges.
Dissolution of the Partnership - Spectrum Commodity will
terminate on December 31, 2027, 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 under certain conditions as defined
in each Partnership's Limited Partnership Agreement.
2. Related Party Transactions
Spectrum Commodity pays brokerage fees to the Commodity Brokers
and a service fee to Demeter, Spectrum Global Balanced,
Spectrum Select, Spectrum Strategic and Spectrum Technical each
pay brokerage fees to DWR, as described in Note 1. For
Spectrum Commodity its cash is on deposit with MS & Co. and
MSIL or Spectrum Global Balanced, Spectrum Select, Spectrum
Strategic and Spectrum Technical their cash is on deposit with
DWR and Carr in futures interests trading accounts to meet
margin requirements as needed. DWR and MS & Co. pay 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 Commodity L.P.
Morgan Stanley Dean Witter Commodities Management, Inc.
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.
Allied Irish Capital Management, Ltd. ("AICM")
Blenheim Investments, Inc. ("Blenheim")
Willowbridge Associates Inc. ("Willowbridge")
Morgan Stanley Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
Compensation to the trading advisors by the Partnerships
consists of management fee and an incentive fee as follows:
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Concluded)
Management Fee - The management fee for Spectrum Commodity is
accrued at a rate of 5/24 of 1% of Net Assets on the first day
of each month (a 2.5% annual rate).
The management fee for Spectrum Global Balanced is accrued at a
rate of 5/48 of 1% of Net Assets on the first day of each month
(a 1.25% annual rate).
The management fee for Spectrum Select is accrued at a rate of
1/4 of 1% of Net Assets 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 Net Assets allocated to each of Blenheim and
Willowbridge on the first day of each month, and 1/12 of 3% of
Net Assets allocated to AICM on the first day of each month
(annual rates of 4% and 3%, respectively).
The management fee for Spectrum Technical is accrued at a rate
of 1/3 of 1% of Net Assets on the first day of each month (a 4%
annual rate).
Incentive Fee - Spectrum Commodity pays an annual incentive fee
equal to 20% of the trading profits as of the end of each
calendar year.
Spectrum Global Balanced, Spectrum Select and Specturm
Stratgegic each pay a monthly incentive fee equal to 15% of the
trading profits 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.
Trading profits for the Partnership's represent the amount by
which profits from futures, forward and options trading exceed
losses after brokerage and management fees are deducted.
For all Partnerships, when trading losses are incurred, no
incentive fees will be paid in subsequent months until all such
losses are received. Cumulative trading losses are adjusted on
a pro-rata basis for the net amount of each months
subscriptions and redemptions.
4. Subsequent Event
Effective April 14, 2000, Willowbridge Associates Inc. was
terminated as an advisor to the Partnership.
