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 June 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. 0-26338
DEAN WITTER SPECTRUM TECHNICAL L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3782231
(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 TECHNICAL L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 1998 (Unaudited) and December 31, 1997.......2
Statements of Operations for the Quarters Ended
June 30, 1998 and 1997 (Unaudited)....................3
Statements of Operations for the Six Months Ended
June 30, 1998 and 1997 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 1998 and 1997
(Unaudited)...........................................5
Statements of Cash Flows for the Six Months Ended
June 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..13-18
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.................................19
Item 2. Changes in Securities and Use of Proceeds......19-20
Item 6. Exhibits and Reports on Form 8-K..................21
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
1998 1997
$ $
(Unaudited)
<CAPTION>
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 204,336,096 168,849,922
Net unrealized gain (loss) on open contracts(2,046,641)12,29
6,712
Net option premiums 119,830 -
Total Trading Equity 202,409,285 181,146,634
Subscriptions receivable 6,746,153 2,965,621
Interest receivable (DWR) 721,597 657,562
Total Assets 209,877,035 184,769,817
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 2,144,533 1,009,230
Accrued brokerage fees (DWR) 1,230,013 1,097,194
Accrued management fees 678,573 573,696
Incentive fees payable - 139,190
Total Liabilities 4,053,119 2,819,310
Partners' Capital
Limited Partners (14,219,993.016 and
12,308,185.227 Units, respectively) 203,717,654 180
,099,271
General Partner (147,022.130 and
126,515.511 Units, respectively) 2,106,262 1,85
1,236
Total Partners' Capital 205,823,916 181,950,507
Total Liabilities and Partners' Capital 209,877,035 184,7
69,817
NET ASSET VALUE PER UNIT 14.33 14.63
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 8,030,269 (5,659,545)
Net change in unrealized (9,336,669) 171,639
Total Trading Results (1,306,400) (5,487,906)
Interest Income (DWR) 1,981,985 1,414,248
Total Revenues 675,585 (4,073,658)
EXPENSES
Brokerage fees (DWR) 3,688,694 2,866,677
Management fees 1,964,210 1,389,902
Total Expenses 5,652,904 4,256,579
NET LOSS (4,977,319) (8,330,237)
NET LOSS ALLOCATION
Limited Partners
(4,926,312) (8,242,176)
General Partner
(51,007) (88,061)
NET LOSS PER UNIT
Limited Partners
(.38) (.83)
General Partner
(.38) (.83)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 17,820,196 (1,641,018)
Net change in unrealized (14,343,353) 2,072,601
Total Trading Results 3,476,843 431,583
Interest Income (DWR) 3,842,512 2,603,680
Total Revenues 7,319,355 3,035,263
EXPENSES
Brokerage fees (DWR) 7,196,245 5,371,682
Management fees 3,798,223 2,604,450
Incentive fees 209,494 230,786
Total Expenses 11,203,962 8,206,918
NET LOSS (3,884,607) (5,171,655)
NET LOSS ALLOCATION
Limited Partners (3,844,633)
(5,115,409)
General Partner
(39,974) (56,246)
NET LOSS PER UNIT
Limited Partners
(.30) (.43)
General Partner
(.30) (.43)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 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 8,300,169.234 $111,852,280 $1,133,349
$112,985,629
Continuous Offering 3,045,204.151 41,439,840 410,000
41,849,840
Net Loss - (5,115,409) (56,246)
(5,171,655)
Redemptions (425,748.986) (5,760,763) -
(5,760,763)
Partners' Capital
June 30, 1997 10,919,624.399 $142,415,948 $1,487,103
$143,903,051
Partners' Capital
December 31, 1997 12,434,700.738 $180,099,271 $1,851,236
$181,950,507
Continuous Offering 2,668,929.357 38,097,664 295,000
38,392,664
Net Loss - (3,844,633) (39,974)
(3,884,607)
Redemptions (736,614.949) (10,634,648) -
(10,634,648)
Partners' Capital
June 30, 1998 14,367,015.146 $203,717,654 $2,106,262
$205,823,916
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (3,884,607)
(5,171,655)
Noncash item included in net loss:
Net change in unrealized 14,343,353 (
2,072,601)
(Increase) decrease in operating assets:
Net option premiums (119,830) 240,862
Interest receivable (DWR) (64,035) (
102,782)
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) 132,819 185,405
Accrued management fees 104,877
89,893
Incentive fee payable (139,190)
- -
Net cash provided by (used for) operating activities 10,373,387
(6,830,878)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in subscriptions receivable (3,780,532) (51,603)
Continuous offering 38,392,664 4
1,849,840
Increase in redemptions payable 1,135,303 1
,387,286
Redemptions of units (10,634,648) (
5,760,763)
Net cash provided by financing activities 25,112,787 3
7,424,760
Net increase in cash 35,486,174 3
0,593,882
Balance at beginning of period 168,849,922 1
06,460,248
Balance at end of period 204,336,096 1
37,054,130
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER SPECTRUM TECHNICAL 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
Technical 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 Technical L.P. is a limited partnership
organized to engage in the speculative trading of futures,
forward and options contracts on commodities, foreign currencies,
financial instruments and other commodity interests
(collectively, "futures interests"). The Partnership is one of
the Dean Witter Spectrum Series of Funds, comprised of the
Partnership, Dean Witter Spectrum Global Balanced L.P., Dean
Witter Spectrum Strategic 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"), with an unaffiliated clearing commodity
broker, Carr Futures Inc. ("Carr"), providing clearing and
execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. ("MSDW").
Demeter has retained Campbell & Company, Inc., Chesapeake Capital
Corporation ("Chesapeake") and John W. Henry & Company, Inc. as
the trading advisors for the Partnership.
<PAGE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Summary of Significant Accounting Policies
Effective June 1, 1998, brokerage fees were reduced to 1/12 of
7.25% of Net Assets as of the first day of the month. The
Partnership pays an incentive fee of 19% of the "Trading Profits"
(as defined in the Limited Partnership Agreement), experienced
with respect to the Net Assets allocated to Chesapeake as of the
end of each calendar month.
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 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
<PAGE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
significantly influence the market value of these contracts,
including interest rate volatility. At June 30, 1998 and
December 31, 1997 open contracts were:
Contract or Notional Amount
June 30, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 442,178,000 302,165,000
Commitments to Sell 69,035,000 80,696,000
Commodity Futures:
Commitments to Purchase 18,768,000 36,753,000
Commitments to Sell 118,166,000 84,557,000
Options Written 3,502,000 -
Foreign Futures:
Commitments to Purchase 754,508,000 283,941,000
Commitments to Sell 861,468,000 379,781,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 325,067,000 116,349,000
Commitments to Sell 501,642,000 203,705,000
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 gain (loss) on open contracts are reported as
a component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition and totaled $(2,046,641)
and $12,296,712 at June 30, 1998 and December 31, 1997,
respectively.
<PAGE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $(2,046,641) net unrealized loss on open contracts at June
30, 1998, $2,469,415 was related to exchange-traded futures and
options contracts and $(4,516,056) related to off-exchange-traded
forward currency contracts.
Of the $12,296,712 net unrealized gain on open contracts at
December 31, 1997, $11,977,756 related to exchange-traded futures
contracts and $318,956 related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1998 and December 31, 1997, mature through June 1999 and
December 31, 1998, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at June 30, 1998 and
December 31, 1997, mature through September 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
<PAGE>
DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
the futures commission merchants or the counterparties, with
respect to most of the Partnership's assets. Exchange-traded
futures and futures styled options 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 and futures styled
options 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 and futures styled options contracts, including an amount
equal to the net unrealized gain (loss) on all open contracts,
which funds, in the aggregate, totaled $206,805,511 and
$180,827,678 at June 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 (loss) 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 TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
For the six months ended June 30, 1998 and the year ended
December 31, 1997, the average fair value of financial
instruments held for trading purposes was as follows:
June 30, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 226,342,000 159,323,000
Commodity Futures 25,230,000 83,328,000
Options on Commodity Futures 500,000 -
Foreign Futures 512,875,000 351,858,000
Off-Exchange-Traded Forward
Currency Contracts 286,080,000 382,895,000
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 233,922,000 153,604,000
Options on Financial Futures 6,705,000 347,000
Commodity Futures 58,233,000 60,140,000
Options on Commodity Futures 2,181,000 -
Foreign Futures 205,510,000 168,044,000
Options on Foreign Futures 4,070,000 -
Off-Exchange-Traded Forward
Currency Contracts 103,299,000 111,186,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are deposited with DWR, as
non-clearing broker and with Carr, as clearing broker in separate
futures interest trading accounts, 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 be
illiquid. If the price of a futures contract for a particular
commodity has increased or decreased by an amount equal to the
"daily limit," positions in the commodity can neither be taken
nor liquidated unless traders are willing to effect trades at or
within the limit. Commodity futures prices have occasionally
moved the daily limit for several consecutive days with little or
no trading. Such market conditions could prevent the Partnership
from promptly liquidating its commodity futures positions and
result in restrictions on redemptions.
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
<PAGE>
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, exchanges and
sales of additional Units of limited Partnership interest in the
future will affect the amount of funds available for investment
in futures interests in subsequent periods. Since they are at
the discretion of the 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 Six Months Ended June 30, 1998
For the quarter ended June 30, 1998, the Partnership recorded
total trading revenues including interest income of $675,585 and
after expenses posted a loss in Net Asset Value per Unit. The
most significant net trading losses were recorded in financial
futures from long positions in Australian government bond futures
as prices reversed lower in April and again in early June after
moving higher previously. Smaller losses were recorded as a
result of short-term price volatility in U.S. interest rate
futures during April and in British interest rate futures during
May. A portion of these losses was offset by gains from long
positions in Japanese government bond futures during May, as
<PAGE>
prices moved higher in reaction to declining interest rate yields
in Japan, and in German stock index futures throughout the
quarter. In metals, losses were recorded from long positions in
gold futures during April and May as gold prices declined. These
losses coupled with smaller losses recorded from long copper
futures positions during May more than offset profits recorded
from short aluminum futures positions throughout the quarter.
Smaller losses were recorded in agricultural futures during June
from short positions in soybean, corn and soybean meal futures as
prices reversed higher following a profitable downward price move
during April and May. A portion of the Partnership's overall
losses for the quarter was offset by gains from short coffee
futures positions as coffee prices moved lower during April and
June. Smaller gains were recorded in soft commodities from short
sugar futures positions as sugar prices declined during April and
May. In the energy markets, profits recorded during May and June
from short crude oil futures positions helped to mitigate the
Partnership's overall losses for the quarter. In currencies,
gains recorded from short positions in the Japanese yen, South
African rand and Australian dollar, as the value of these
currencies trended significantly lower versus the U.S. dollar
during a majority of the quarter, more than offset losses
experienced from short-term volatility in most major European
currencies. Total expenses for the three months ended June 30,
1998 were $5,652,904, resulting in a net loss of $4,977,319. The
value of an individual Unit in the Partnership decreased from
$14.71 at March 31, 1998 to $14.33 at June 30, 1998.
<PAGE>
For the six months ended June 30, 1998, the Partnership recorded
total trading revenues including interest income of $7,319,355
and after expenses posted a decrease in Net Asset Value per Unit.
The most significant net trading losses were experienced in the
metals markets from long gold futures positions as gold prices
moved lower during March, April and May. Additional losses were
recorded during January from short gold futures positions as
prices moved higher. Smaller losses were recorded from long
copper futures positions during May as prices in this market
moved lower. In currencies, losses were experienced from
transactions involving the British pound as its value moved
without consistent direction for a majority of the year,
particularly during May and June. Smaller currency losses were
recorded from transactions involving the German mark as its value
also moved in a short-term volatile pattern relative to other
world currencies during the second quarter. These losses were
partially offset by gains from short crude and heating oil
futures positions as oil prices declined during January and early
February as tensions eased in the Middle East. These short
positions were also profitable during May and June as prices
continued to move lower following a brief spike higher during
late March and early April. Additional gains were recorded in
financial futures from long positions in German and French bond
and stock index futures as prices in these markets trended higher
during a majority of the first six months of the year. Gains
recorded in soft commodities during April and June from short
coffee futures positions also helped to offset a portion of the
overall Partnership losses for the first half of the year. Total
expenses for the six months ended June 30, 1998
<PAGE>
were $11,203,962, resulting in a net loss of $3,884,607. The
value of an individual Unit in the Partnership decreased from
$14.63 at December 31, 1997 to $14.33 at June 30, 1998.
For the Quarter and Six Months Ended June 30, 1997
For the quarter ended June 30, 1997, the Partnership recorded
total trading losses net of interest income of $4,073,658 and
posted a decrease in Net Asset Value per Unit. Losses were
recorded in the currency markets during May from transactions
involving the Japanese yen as its value moved without consistent
direction. Additional currency losses were recorded from
transactions involving the Swiss franc as its value moved in a
choppy pattern during June. In the energy markets, losses were
recorded as oil and gas prices moved in a short-term volatile
pattern during the quarter. Additional losses were recorded
during April from short U.S. interest rate futures positions as
U.S. bond prices moved higher, and from trading Japanese and
European bond futures as prices in these markets moved in a
choppy pattern. A portion of these losses was offset by gains
recorded from long positions in Australian bond and global stock
index futures as prices in these markets trended higher during
May and June. A portion of overall losses for the quarter was
offset by gains recorded from short gold futures positions as
prices moved sharply lower during June. In soft commodities,
gains were recorded from long coffee futures positions as coffee
prices trended higher during April and May. Total expenses for
the three months ended June 30, 1997 were $4,256,579, resulting
in a
<PAGE>
net loss of $8,330,237. The value of an individual Unit in the
Partnership decreased from $14.01 at March 31, 1997 to $13.18 at
June 30, 1997.
For the six months ended June 30, 1997, the Partnership recorded
total trading revenues including interest income of $3,035,263
and after expenses posted a decrease in Net Asset Value per Unit.
Net trading losses were recorded in energy futures as oil and gas
prices moved in a choppy pattern throughout a majority of the
first six months of the year. Additional losses were recorded
from trendless price movement in global interest rate futures
during February, March and April. A portion of these losses was
offset by gains recorded from long positions in global stock
index and Australian bond futures as prices in these market moved
higher during May and June. Gains were recorded from long coffee
futures positions as prices moved in an upward trend during
February, April and May. In metals, gains were recorded from
short positions in gold futures as prices declined during
January, April and June. In currency trading, gains were
recorded from short positions in the German mark and Japanese yen
as the value of the U.S. dollar strengthened relative to these
currencies during January, February and April. Total expenses
for the six months ended June 30, 1997 were $8,206,918, resulting
in a net loss of $5,171,655. The value of an individual Unit in
the Partnership decreased from $13.61 at December 31, 1996 to
$13.18 at June 30, 1997.
<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 Global Balanced L.P.
("Spectrum Global Balanced" and, collectively with Spectrum
Strategic and the Partnership, the "Spectrum Series") 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 (SEC File Number 33-80146).
While such Units were not allocated among the Spectrum Series at
that time, they were subsequently allocated for convenience
purposes as follows: Spectrum Strategic 4,000,000, the Partnership
4,000,000 and Spectrum Global Balanced 2,000,000. The Spectrum
Series 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 among the Spectrum Series as follows:
Spectrum Strategic 6,000,000, the Partnership 9,000,000 and
Spectrum Global Balanced 5,000,000. The Spectrum Series 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 among the
Spectrum Series as follows: Spectrum Strategic 2,500,000, the
Partnership 5,000,000 and Spectrum Global Balanced 1,000,000. The
Partnership registered an additional 5,000,000 Units pursuant to
<PAGE>
another Registration Statement on Form S-1, which became effective
on May 11, 1998 (SEC File Number 333-47831). The managing
underwriter for the Spectrum Series 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 June 30, 1998, 16,566,091.939 Units were sold, leaving
6,433,908.061 Units unsold as of July 1, 1998. The aggregate
offering amount registered was $274,570,000 based upon the offering
price of $10 per Unit for the 4,000,000 Units registered on
September 15, 1994; $11.73 per Unit for the 9,000,000 Units
registered on January 31, 1996; $11.27 per Unit for the 5,000,000
Units registered on April 30, 1996; and $14.53 per Unit for the
5,000,000 Units registered on May 11, 1998. The aggregate price of
the Units sold through June 30, 1998 is $207,791,679.
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.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K. - No such reports have been
filed for the quarter ended June 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 Technical
LP (Registrant)
By: Demeter Management Corporation
(General Partner)
August 13, 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 Technical L.P. and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 204,336,096
<SECURITIES> 0
<RECEIVABLES> 7,467,750<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 209,877,035<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 209,877,035<F3>
<SALES> 0
<TOTAL-REVENUES> 7,319,355<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 11,203,962
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,884,607)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,884,607)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,884,607)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include subscription receivable of $6,746,153 and interest
receivable of $721,597.
<F2>In addition to cash and receivables, total assets include net unrealized
loss on open contracts of $(2,046,641).
<F3>Liabilities include redemptions payable of $2,144,533, accrued brokerage
fees of $1,230,013, and accrued management fees of $678,573.
<F4>Total revenue includes realized trading revenue of $17,820,196, net
change in unrealized of $(14,343,353) and interest income of $3,842,512.
</FN>
</TABLE>
