Dean Witter Spectrum Series
Monthly Report
November 1998
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Dean Witter Spectrum
Funds as of November 30, 1998 was as follows:
Funds N.A.V. % change for month
Spectrum Global Balanced $15.80 2.70%
Spectrum Select $23.52 -4.17%
Spectrum Strategic $11.24 -7.94%
Spectrum Technical $15.21 -6.17%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, gains were recorded primarily in the global stock index
futures component from long positions in S&P 500 Index and German stock
index futures as most global equity markets moved higher amidst the
recovery of the U.S. stock markets. The energy markets contributed
additional gains in the managed futures component of the balanced portfolio
from short crude oil futures positions as oil prices declined on reports
that global demand for oil remains low amid an oil glut and as tensions
with Iraq subsided. Smaller gains were recorded in the agricultural and
soft commodities markets. A portion of these gains was offset by losses
experienced in the bond futures component from long positions in U.S.,
European and Australian interest rate futures as the rising global stock
markets and strengthening U.S. dollar depleted the safe-haven appeal of
bonds early in the month. Additional losses were recorded in the currency
markets from long Japanese yen positions. The value of the yen decreased
versus the U.S. dollar and other major currencies in response to concerns
regarding the Japanese government's economic stimulus package and a barrage
of less than positive economic data released late in the month.
In Spectrum Select, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, losses were recorded
primarily in the global interest rate futures markets from long positions
in European, Australian and Japanese bond futures. Prices in these markets
fell early in the month as investors focused on the recovering global stock
markets and the strengthening U.S. dollar. Additional losses were
experienced in the currency markets from long German mark positions as the
value of the mark weakened versus the U.S. dollar amid signs of stability
in the global equity markets and optimism regarding the U.S. economy.
Additional losses were recorded in the metals markets from short gold
futures positions as gold prices increased as some investors anticipated
that this precious metal would play its traditional role as a "safe haven"
investment should fighting in Iraq have materialized. Short zinc, nickel
and lead futures positions also produced losses as base metal prices
increased on reports of possible supply interruptions. A portion of the
Fund's overall losses was offset by gains recorded in the energy markets
from short positions in crude oil futures and its refined products,
unleaded gas and heating oil futures. Energy prices declined as tensions
regarding Iraq diminished and as the possibility of further production cuts
by OPEC in the near future deemed unlikely.
In Spectrum Strategic, a Fund managed by three trading advisors who employ
fundamental trading methodologies, losses were recorded primarily in the
energy markets from long crude oil futures positions as oil prices declined
due to the easing of tensions in the Middle East and on expectations that
OPEC's semiannual meeting in Vienna will not yield further production cuts
amid an oil glut. Additional losses were experienced in the soft
commodities markets from long cocoa futures positions as cocoa prices
declined due to pressure from an ongoing harvest in the Ivory Coast amid
ample supply. A portion of the Fund's overall losses for the month was
offset by gains in long British and German interest rate futures and from
short Japanese interest rate futures positions late in the month. Fears of
a possible U.S. military strike against Iraq, expectations that the
European Central Bank would lower interest rates early next year and the
lukewarm reception of the latest Japanese economic recovery package pushed
the price of these "safe haven" investments higher.
<PAGE>
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, losses were
experienced primarily in the currency markets from a strengthening of the
U.S. dollar, as well as a decline in the value of the Japanese yen. The
U.S. dollar strengthened versus most major currencies on optimism regarding
the U.S. economy and by the threat of military action against Iraq as
investors sought the refuge of this perceived safe currency. This upward
move in the U.S. dollar, coupled with concerns regarding a Japanese
government sponsored economic stimulus plan, resulted in losses for long
Japanese yen positions. Month-end news that Japan's industrial production,
retail sales and unemployment were worse-than-expected reminded investors
that the Japanese economy remains buried in a recession and that the future
is less than bright. Losses were also recorded from long U.S interest rate
futures positions as prices in these markets declined early in the month on
the global stock markets surge and the firm U.S. dollar. Long Japanese
government bond futures positions also produced losses as prices declined
on deteriorating supply and demand conditions in Japan. Smaller losses
were experienced in the soft commodities markets from long coffee and sugar
futures positions. Coffee prices slid as fears of hurricane damage to
Central American crops diminished and on reports of Colombia's October
production being higher-than-expected. Sugar prices declined due to a
surplus in world sugar supplies. A portion of the Fund's overall losses
was offset by gains in the energy markets from short crude oil futures
positions as oil prices slipped due to easing tensions regarding Iraq and
on low expectations of further production cuts by OPEC.
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,
Mark J. Hawley
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 -3.7%
1997 18.2%
1998 (11 months) 14.9%
Inception-to-Date Return: 58.0%
Annualized Return: 11.9%
___________________________________________________________________________
__________
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 (11 months) 12.8%
Inception-to-Date Return 135.2%
Annualized Return 12.4%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 (11 months) 5.0%
Inception-to-Date Return: 12.4%
Annualized Return: 2.9%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.4%
1997 7.5%
1998 (11 months) 4.0%
Inception-to-Date Return: 52.1%
Annualized Return: 10.8%
</TABLE>___________________________________________________________________
__________________
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended November 30, 1998
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced Dean Witter Spectrum Select
Percent of
Percent of
November 1, 1998
November 1, 1998
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized 963,187 2.29 3,729,667
1.89
Net change in unrealized 406,129 0.96 (10,827,356)
(5.48)
Total Trading Results 1,369,316 3.25 (7,097,689)
(3.59)
Interest Income (DWR) 146,439 0.35
545,971 0.27
Total Revenues 1,515,755 3.60
(6,551,718) (3.32)
EXPENSES
Incentive fees 174,626 0.42 -
- -
Brokerage fees (DWR) 161,307 0.38 1,193,164
0.60
Management fees 43,834 0.10
493,723 0.25
Total Expenses 379,767 0.90
1,686,887 0.85
NET INCOME (LOSS) 1,135,988 2.70
(8,238,605) (4.17)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended November 30, 1998
(Unaudited)
Dean Witter Spectrum Global Balanced Dean
Witter Spectrum Select .
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
November 1, 1998 2,734,760.710 42,080,402 15.39 8,046,761.600
197,489,186 24.54
Net Income (Loss) - 1,135,988 0.41 -
(8,238,605) (1.02)
Redemptions (14,652.526) (231,510) 15.80 (37,965.963)
(892,959) 23.52
Subscriptions 83,658.599 1,321,806 15.80 185,428.027
4,361,267 23.52
Net Asset Value,
November 30, 1998 2,803,766.783 44,306,686 15.80 8,194,223.664
192,718,889 23.52
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended November 30, 1998
(Unaudited)
<CAPTION>
Dean Witter Spectrum Strategic
Dean Witter Spectrum Technical.
Percent of
Percent of
November 1, 1998
November 1, 1998
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit (Loss):
Realized (5,558,764) (7.78)
3,387,042 1.36
Net change in unrealized 346,350 0.49 (17,089,728)
(6.85)
Total Trading Results (5,212,414) (7.29)
(13,702,686) (5.49)
Interest Income (DWR) 200,539 0.28
629,839 0.25
Total Revenues (5,011,875) (7.01)
(13,072,847) (5.24)
EXPENSES
Incentive fees - - -
- -
Brokerage fees (DWR) 431,764 0.60 1,508,300
0.60
Management fees 233,933 0.33 832,165
0.33
Total Expenses 665,697 0.93 2,340,465
0.93
NET INCOME (LOSS) (5,677,572) (7.94)
(15,413,312) (6.17)
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended November 30, 1998
(Unaudited)
Dean Witter Spectrum Strategic Dean Witter
Spectrum Technical
Units Amount Per Unit Units
Amount Per Unit
$ $
$ $
<S> <C> <C> <C> <C>
<C> <C>
Net Asset Value,
November 1, 1998 5,855,311.212 71,464,429 12.21 15,398,098.060
249,649,648 16.21
Net Income (Loss) - (5,677,572) (0.97) -
(15,413,312) (1.00)
Redemptions (26,971.233) (303,157) 11.24 (73,983.643)
(1,125,291) 15.21
Subscriptions 146,900.878 1,651,166 11.24 334,867.098
5,093,329 15.21
Net Asset Value,
November 30, 1998 5,975,240.857 67,134,866 11.24 15,658,981.515
238,204,374 15.21
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Dean Witter Spectrum Global Balanced L.P.
(formally known as Dean Witter Spectrum Balanced
L.P.)("Spectrum Balanced"), Dean Witter Spectrum Select L.P.
(formally known as Dean Witter Select Futures Fund L.P.)
("Spectrum Select"), Dean Witter Spectrum Strategic L.P.
("Spectrum Strategic") and 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. The general
partner for each Partnership 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. Both Demeter and DWR 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
the General and Limited Partners based upon their proportional
ownership interests.
Basis of Accounting - The preparation of financial statements
in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts in the financial statements.
Revenue Recognition - Commodity futures contracts and forward
contracts on foreign currencies 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 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 forward contracts and other commodity 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 Fees and Related Transaction Fees and Costs -
Brokerage fees for Spectrum Balanced are accrued at a monthly
rate of 1/12 of 4.60% of the Net Assets as of the first day of
each month.
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a monthly rate of 1/12 of
7.25% of the Net Assets as of the first day of each month.
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements -
(Continued)
Such fees will cover all brokerage fees, transaction fees and
costs and ordinary administrative and continuing offering
expenses.
Operating Expenses - Spectrum Balanced, Spectrum Strategic and
Spectrum Technical, 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.
Spectrum Select bears all operating expenses related to its
trading activities, to a maximum of 1/4 of 1% annually of the
Partnership's average month end Net Assets. In addition, the
Partnership incurs a monthly management fee and may incur an
incentive fee. Demeter bears all other operating expenses.
Effective with the June 1, 1998 change to a flat rate brokerage
fee, all common administrative and continuing offering expenses
will be borne by DWR through the brokerage fees.
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
opening of business on the first 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>
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 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 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 commodity trading accounts to meet margin requirements as
needed. DWR pays interest on these funds as described in Note
1. Each Partnership is authorized to issue and sell Units at
Monthly Closings at a price per Unit equal to 100% of the Net
Asset Value of a Unit of such Partnership as of the close of
business on the date of such monthly closing.
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:
Dean Witter Spectrum Global Balanced L.P.
RXR, Inc.
Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Dean Witter Spectrum Strategic L.P.
Blenheim Investments, Inc.
Stonebrook Capital Management, Inc.
Willowbridge Associates Inc.
Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.
Chesapeake Capital Corporation
John W. Henry & Company, Inc. ("JWH")
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as follows:
Management Fee - The management fee is accrued at the rate of
5/48 of 1% of the Net Assets on the first day of each month (a
1.25% annual rate) to Spectrum Balanced.
The management fee is accrued at the 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) to Spectrum
Technical.
Prior the June 1, 1998, the management fee was accrued at the
rate of one fourth of 1% of the Partnership's adjusted Net Assets,
as defined in the Limited Partnership Agreements, as of the last
day of each month (a 3% annual rate) to Spectrum Select.
Effective June 1, 1998, the management fee is accrued at the
rate of one fourth of 1% per month of the Net Assets allocated to
each trading advisor on the first day of each month (a 3% annual
rate).
Prior to June 1, 1998, the management fee was accrued at the
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) to Spectrum Strategic. Effective June 1, 1998,
management fees are 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.
Incentive Fee - Spectrum Balanced and Spectrum Strategic each
will pay a monthly incentive fee equal to 15% of the "Trading
Profits" as defined in its Limited Partnership Agreement,
experienced with respect to each trading manager's allocated
Net Assets as of the end of each calendar month.
Prior to June 1, 1998, Spectrum Select paid, when applicable, a
quarterly incentive fee to each trading advisor equal to 17.5%
of the trading advisors Trading Profits experienced by the Net
Assets allocated to such trading advisor as of the end of each
calendar quarter. Effective June 1, 1998 the incentive fees
was revised to 15% of Trading Profits and are paid on a monthly
basis.
Prior to June 1, 1998, Spectrum Technical paid a fee equal to
15% of the "Trading Profits" as defined in its Limited
Partnership agreement, experienced with respect to each trading
manager's allocated Net Assets as of the end of each calendar
month. Effective June 1, 1998 incentive fees for Spectrum
Technical were revised to 15% of the Trading Profits
experienced with respect to the Net Assets allocated to
Campbell and JWH as of the end of each calendar month, and 19%
of the Trading Profits experienced with respect to the Net
Assets allocated to Chesapeake as of the end of each calendar
month.
<PAGE>
Dean Witter Spectrum Series
Notes to Financial Statements
(Concluded)
For all Partnerships, if a trading advisor has experienced
"Trading Losses" with respect to its allocated Net Assets at
the time of a supplemental closing, the trading advisor must
earn back such losses plus a pro-rata amount related to the
funds allocated to the trading advisor at supplemental closing
before the trading advisor is eligible for an incentive fee.
