Dean Witter Spectrum Series
Monthly Report
August 1998
Dear Limited Partner:
The Net Asset Value per Unit for each of the four Dean Witter Spectrum
Funds as of August 31, 1998 was as follows:
Funds N.A.V. % Change for Month
Spectrum Global Balanced $14.47 2.58%
Spectrum Select $24.35 19.17%
Spectrum Strategic $ 9.46 11.81%
Spectrum Technical $15.65 10.34%
In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and
managed futures, gains were recorded primarily from long positions in the
global bond futures component, specifically long positions in U.S.,
European and Japanese bond futures, as prices in these markets soared
higher as investors flocked to these "safe havens" in lieu of the political
and economic upheaval in Russia. Additional gains were recorded in the
managed futures component from short positions in agricultural futures,
namely in corn and lean hog futures, as prices in these markets continued
to trend lower amid large supplies and weaker exports. Profits were also
recorded from short positions in crude oil futures as oil prices continued
to move lower on decreasing demand due to the Russian crisis and
anticipation that production by certain OPEC members will continue to
increase. Smaller gains were recorded in the currency markets from short
Australian dollar positions. These gains were partially offset by losses
incurred from long S&P 500 Index futures positions as U.S. equity prices
plunged on fears that the economic troubles plaguing Russia, Japan, and to
a lesser extent Latin America, will have a negative effect on the U.S.
economy.
In Spectrum Select, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, gains were recorded
primarily from long global interest rate futures positions. The most
signficiant gains were recorded from long positions in German, French, U.S.
and Japanese bond futures as investors flocked to these perceived "safe
haven" investments amid recent global economic uncertainty. Additional
gains were recorded from shor tpositions in global stock index futures,
particularly German, Japanese and U.S. stock index futures, as equity
prices around the world moved significantly lower during August. In the
agricultural markets, gains were recorded from short positions in corn,
soybean and soybean meal futures as grain prices continued to decline on
reports of abundant supplies and decreasing demand. Gains were also
recorded in the currency markets from short Canadian dollar positions as
its value reached its lowest level ever versus the U.S. dollar. In the
energy markets, gains were recorded from short positions in oil and gas
futures as energy prices decreased throughout the month. Smaller gains
were recorded in the metals markets from short gold futures positions as
the price of gold reached a 19-year low. A portion of the Fund's gains for
the month was offset by losses recorded in soft commodities from long
positions in coffee futures as coffee prices fell on increased supply and
shrinking demand.
In Spectrum Strategic, a Fund managed by three trading advisors who employ
fundamental trading methodologies, gains were recorded primarily from long
global interest rate futures positions. The most significant gains were
recorded from long positions in European bond futures as investors flocked
to these perceived "safe haven" investments amid the recent political and
economic turmoil in Russia, Asia and Latin America. Smaller gains were
recorded from short positions in U.S. stock index futures as domestic
equity prices declined sharply during August due to global economic
uncertainty. A portion of the Fund's overall gains for the month was
offset by losses recorded in the currency markets from short Japanese yen
positions as the value of the yen increased versus the U.S. dollar and
German mark late in the month. Smaller currency losses were recorded from
long German mark and British pound positions as the value of these
currencies declined relative to the U.S. dollar early in the month. In the
enrgy markets, losses were experienced from long positions in crude and
heating oil futures as oil prices declined amid speculation that OPEC's
November meeting will not yield a production cut. Smaller losses were
recorded in the metals markets from long silver futures positions as silver
prices finished the month lower.
<PAGE>
In Spectrum Technical, a Fund managed by three trading advisors who employ
long-term technical trend-following trading systems, gains were recorded
primarily from long global interest rate future positions. The most
significant gains were recorded from long positions in German, U.S., and
Japanese bond futures as investors flocked to these perceived "safe haven"
investments amid the recent political and economic turmoil in Russia, Asia
and Latin America. In the agricultural markets, gains were recorded from
short positions as prices in these markets continued to decline on reports
of abundant supplies and decreasing demand. Additional gains were recorded
in the energy markets from short positions in crude oil futures as oil
prices declined on speculation that OPEC's November meeting will not yield
any production cuts. Gains were also recorded in the metals markets from
short gold and silver futures positions as precious metals prices moved
lower during August. Smaller gains were recorded in soft commodities from
short sugar futures positions as sugar prices decreased as demand lessened
and supplies grew due to economic turmoil in emerging markets worldwide.
A portion of the Fund's overall gains for the month were offset by losses
experienced in the currency markets from short Japanese yen and British
pound positions as the value of these currencies moved significantly higher
relative to the U.S. dollar late in the month.
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 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 (8 months) 5.2%
Inception-to-Date Return: 44.7%
Annualized Return: 10.1%
___________________________________________________________________________
__________
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 (8 months) 16.8%
Inception-to-Date Return 143.5%
Annualized Return 13.4%
___________________________________________________________________________
__________
Spectrum Strategic
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 (8 months) -11.7%
Inception-to-Date Return: -5.4%
Annualized Return: -1.4%
___________________________________________________________________________
__________
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.4%
1997 7.5%
1998 (8 months) -7.0%
Inception-to-Date Return: 56.5%
Annualized Return: 12.4%
___________________________________________________________________________
__________
</TABLE>
<PAGE>
<TABLE>
Dean Witter Spectrum Series
Statements of Operations
For the Month Ended August 31, 1998
(Unaudited)
<CAPTION>
Dean Witter Spectrum
Global Balanced Dean Witter Spectrum Select
Percent of
Percent of
August 31, 1998
August 31, 1998
Beginning Beginning
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit
Realized 1,226,295 3.45 8,585,115
5.41
Net change in unrealized (284,393) (.80) 23,131,362
14.59
Total Trading Results 941,902 2.65 31,716,477
20.00
Interest Income (DWR) 149,820 .42
560,308 .35
Total Revenues 1,091,722 3.07
32,276,785 20.35
EXPENSES
Brokerage fees (DWR) 136,417 .38 954,154
.60
Management fees (DWFCM) 37,070 .11 396,493
.25
Incentive fees - - 520,077
.33
Total Expenses 173,487 .49 1,870,724
1.18
NET INCOME 918,235 2.58 30,406,061
19.17
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended August 31, 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,
August 1, 1998 2,522,435.692 35,587,528 14.11 7,761,853.794
158,597,376 20.43
Net Income - 918,235 .36 -
30,406,061 3.92
Redemptions (27,420.496) (396,775) 14.47 (72,521.100)
(1,765,670) 24.35
Subscriptions 106,891.539 1,546,720 14.47 140,194.421
3,413,734 24.35
Net Asset Value,
August 31, 1998 2,601,906.735 37,655,708 14.47 7,829,527.115
190,651,501 24.35
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 August 31, 1998
(Unaudited)
<CAPTION>
Dean Witter
Spectrum Strategic Dean Witter Spectrum Technical.
Percent of
Percent of
August 31, 1998
August 31, 1998
Beginning Beginning
Amount Net Asset Value Amount
Net Asset Value
$ % $ %
REVENUES
<S> <C> <C> <C>
<C>
Trading Profit
Realized 1,792,500 3.57 3,451,790
1.65
Net change in unrealized 4,435,327 8.83 20,995,608
10.07
Total Trading Results 6,227,827 12.40 24,447,398
11.72
Interest Income (DWR) 169,031 .34
731,589 .35
Total Revenues 6,396,858 12.74 25,178,987
12.07
EXPENSES
Brokerage fees (DWR) 303,386 .60 1,260,375
.61
Management fees 162,865 .33 695,379
.33
Incentive fees - . - .
1,645,007 .79
Total Expenses 466,251 .93 3,600,761
1.73
NET INCOME 5,930,607 11.81 21,578,226
10.34
Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended August 31, 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,
August 1, 1998 5,932,222.591 50,215,608 8.46 14,705,677.119
208,613,659 14.19
Net Loss - 5,930,607 1.00 -
21,578,226 1.46
Redemptions (164,807.347) (1,559,077) 9.46 (163,030.606)
(2,551,429) 15.65
Subscriptions 82,722.543 782,555 9.46 334,300.500
5,231,803 15.65
Net Asset Value,
August 31, 1998 5,850,137.787 55,369,693 9.46 14,876,947.013
232,872,259 15.65
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"), 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 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 one fourth 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 redemption 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 their 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 Agreement, 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 the 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 will be revised to 15% of "Trading Profits" and will be
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 the 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 to 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.
