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 September 30, 2000 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 number 0-26338
MORGAN STANLEY 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___________
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
September 30, 2000 (Unaudited) and December 31, 1999.......2
Statements of Operations for the Quarters Ended
September 30, 2000 and 1999 (Unaudited)....................3
Statements of Operations for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Nine Months Ended September 30, 2000 and 1999
(Unaudited)................................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)....................6
Notes to Financial Statements (Unaudited)...............7-
13
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.......14-26
Item 3. Quantitative and Qualitative Disclosures about
Market Risk ........................................26-39
Part II. OTHER INFORMATION
Item 1. Legal Proceedings......................................40
Item 2. Changes in Securities and Use of Proceeds...........40-42
Item 5. Other Information......................................42
Item 6. Exhibits and Reports on Form 8-K....................43-44
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
2000 1999
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 226,511,024 251,443,755
Net unrealized gain (loss) on open contracts(9,507,450)18,03
6,296
Net option premiums ____-___ (74,725)
Total Trading Equity 217,003,574 269,405,326
Subscriptions receivable 2,026,587 3,926,914
Interest receivable (DWR) 966,661 900,955
Total Assets 219,996,822 274,233,195
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 3,704,890 3,057,593
Accrued brokerage fees (DWR) 1,426,336 1,559,481
Accrued management fees 786,944 860,403
Total Liabilities 5,918,170 5,477,477
Partners' Capital
Limited Partners (17,046,483.542 and
17,836,873.576 Units, respectively) 211,706,276 265,9
07,998
General Partner (191,022.517 Units) 2,372,376 2,8
47,720
Total Partners' Capital 214,078,652 268,755,718
Total Liabilities and Partners' Capital 219,996,822 274,
233,195
NET ASSET VALUE PER UNIT 12.42
14.91
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (1,698,436) 864,430
Net change in unrealized (15,848,793) (8,011,531)
Total Trading Results (17,547,229) (7,147,101)
Interest Income (DWR) 2,900,333 2,574,538
Total Revenues (14,646,896) (4,572,563)
EXPENSES
Brokerage fees (DWR) 4,267,433 5,041,583
Management fees 2,354,445 2,781,562
Total Expenses 6,621,878 7,823,145
NET LOSS (21,268,774) (12,395,708)
NET LOSS ALLOCATION
Limited Partners
(21,035,445) (12,268,803)
General Partner (233,329)
(126,905)
NET LOSS PER UNIT
Limited Partners (1.22)(0.73)
General Partner
(1.22) (0.73)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
2000 1999
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (3,600,848) 14,704,626
Net change in unrealized (27,543,746) (6,261,686)
Total Trading Results (31,144,594) 8,442,940
Interest Income (DWR) 8,652,795 6,954,549
Total Revenues (22,491,799) 15,397,489
EXPENSES
Brokerage fees (DWR) 13,766,107 14,393,049
Management fees 7,595,092 7,940,992
Incentive fees 54,486 430,097
Total Expenses 21,415,685 22,764,138
NET LOSS (43,907,484) (7,366,649)
NET LOSS ALLOCATION
Limited Partners (43,432,140) (7,293,262)
General Partner (475,344)
(73,387)
NET LOSS PER UNIT
Limited Partners (2.49) (0.46)
General Partner (2.49)(0.46)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital,
December 31, 1998 15,824,199.968 $252,455,045 $2,646,389
$255,101,434
Offering of Units 3,096,204.722 48,485,453 310,000
48,795,453
Net Loss
- (7,293,262) (73,387) (7,366,649)
Redemptions (1,085,118.060) (17,147,908)
- (17,147,908)
Partners' Capital,
September 30, 1999 17,835,286.630 $276,499,328 $2,883,002
$279,382,330
Partners' Capital,
December 31, 1999 18,027,896.093 $265,907,998 $2,847,720
$268,755,718
Offering of Units 1,778,920.473 25,005,790
- 25,005,790
Net Loss
- (43,432,140) (475,344)
(43,907,484)
Redemptions (2,569,310.507) (35,775,372)
- (35,775,372)
Partners' Capital,
September 30, 2000 17,237,506.059 $211,706,276 $2,372,376
$214,078,652
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (43,907,484)
(7,366,649)
Noncash item included in net loss:
Net change in unrealized 27,543,746 6
,261,686
(Increase) decrease in operating assets:
Interest receivable (DWR) (65,706) (
184,497)
Net option premiums (74,725) 1
,483,429
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) (133,145) 259,946
Accrued management fees (73,459)
143,418
Net cash provided by (used for) operating activities (16
,710,773) 597,333
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 25,005,790 4
8,795,453
Decrease in subscriptions receivable 1,900,327 75,349
Increase in redemptions payable 647,297 230,747
Redemptions of Units (35,775,372)
(17,147,908)
Net cash provided by (used for) financing activities
(8,221,958) 31,953,641
Net increase (decrease) in cash (24,932,731) 3
2,550,974
Balance at beginning of period 251,443,755
235,044,325
Balance at end of period 226,511,024
267,595,299
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Morgan Stanley 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, 1999 Annual Report on Form 10-K.
1. Organization
Morgan Stanley Dean Witter Spectrum Technical L.P. is a Delaware
limited partnership 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 Partnership is one of
the Morgan Stanley Dean Witter Spectrum Series of funds,
comprised of the Partnership, Morgan Stanley Dean Witter Spectrum
Commodity L.P., Morgan Stanley Dean Witter Spectrum Currency
L.P., Morgan Stanley Dean Witter Spectrum Global Balanced L.P.,
Morgan Stanley Dean Witter Spectrum Select L.P. and Morgan
Stanley Dean Witter Spectrum Strategic L.P.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The general partner is Demeter Management Corporation
("Demeter"). The non-clearing commodity broker is Dean Witter
Reynolds Inc. ("DWR"), and an unaffiliated clearing commodity
broker, Carr Futures Inc. ("Carr"), provides clearing and
execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. The trading
advisors to the Partner-ship are Campbell & Company, Inc.,
Chesapeake Capital Corporation and John W. Henry & Company, Inc.,
(collectively, the "Trading Advisors").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on a prevailing rate on
U.S. Treasury bills. Brokerage fees are paid to DWR.
3. Financial Instruments
The Partnership trades 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.
Futures and forwards represent contracts for delayed delivery of
an instrument at a specified date and price. Risk arises from
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 significantly
influence the market value of these contracts, including interest
rate volatility.
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No.
133, "Accounting for Derivative Instruments and Hedging
Activities" effective for fiscal years beginning after June 15,
2000, as amended by SFAS No. 137. The Partnership adopted the
provisions of SFAS No. 133 beginning with the fiscal year ended
December 31, 1998. SFAS No. 133 superceded SFAS Nos. 119 and 105,
which required the disclosure of average aggregate fair values
and contract/notional values, respectively, of derivative
financial instruments for an entity that carries its assets at
fair value. SFAS No. 133 was further amended by SFAS No. 138,
which clarifies issues surrounding interest rate risk, foreign
currency denominations, normal purchases and sales and net
hedging. The application of SFAS No. 133, as amended by SFAS No.
137, did not have a significant effect on the Partnership's
financial statements, nor will the application of the provisions
of SFAS No. 138 have a significant effect on the Partnership's
financial statements.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SFAS No. 133 defines a derivative as a financial instrument or
other contract that has all three of the following
characteristics:
1) One or more underlying notional amounts or payment
provisions;
2) Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in market
factors;
3) Terms require or permit net settlement.
Generally derivatives include futures, forwards, swaps or option
contracts, or other financial instruments with similar
characteristics such as caps, floors and collars.
The net unrealized gain (loss) on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $(9,507,450)
and $18,036,296 at September 30, 2000 and December 31, 1999,
respectively.
Of the $9,507,450 net unrealized loss on open contracts at
September 30, 2000, $6,831,060 related to exchange-traded futures
and futures-styled options contracts and $2,676,390 related to
off-exchange-traded forward currency contracts.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Of the $18,036,296 net unrealized gain on open contracts at
December 31, 1999, $17,006,044 related to exchange-traded futures
and future-styled options contracts and $1,030,252 related to off-
exchange-traded forward currency contracts.
Exchange-traded futures and futures-styled option contracts held
by the Partnership at September 30, 2000 and December 31, 1999
mature through September 2001 and December 2000, respectively.
Off-exchange-traded forward currency contracts held by the
Partnership at September 30, 2000 and December 31, 1999 mature
through December 2000 and March 2000, respectively.
The Partnership has credit risk associated with counterparty non-
performance. The credit risk associated with the instruments in
which the Partnership is involved 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
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
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
all of the Partnership's exchange-traded futures and futures-
styled options contracts, are 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 futures and futures-styled options contracts, which
funds, in the aggregate, totaled $219,679,964 and $268,449,799 at
September 30, 2000 and December 31, 1999, 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 of such contracts, to perform. The
Partnership has a netting agreement with Carr. This agreement,
which seeks to reduce both the Partnership's and Carr's exposure
on off-exchange-traded forward currency contracts, should
materially decrease the Partnership's credit risk in the event of
Carr's bankruptcy or insolvency. Carr's parent, Credit Agricole
Indosuez, has guaranteed to the Partnership payment of the net
liquidating value of the
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
transactions in the Partnership's account with Carr (including
foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership deposits its assets with DWR as non-
clearing broker and Carr as clearing broker in separate futures
trading accounts established for each Trading Advisor, which
assets are used as margin to engage in trading. The assets are
held in either non-interest-bearing bank accounts or in
securities and instruments permitted by the CFTC for investment
of customer segregated or secured funds. The Partnership's
assets held by the commodity brokers may be used as margin solely
for the Partnership's trading. Since the Partnership's sole
purpose is to trade in futures, forwards and options, it is
expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in futures, forwards and options
may, from time to time, be illiquid. Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as "daily price fluctuations limits" or "daily
limits". Trades may not be executed at prices beyond the daily
limit. If the price for a particular futures or options contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be
taken nor liquidated unless traders are willing to effect trades
at or
<PAGE>
within the limit. Futures prices have occasionally moved the
daily limit for several consecutive days with little or no
trading. These market conditions could prevent the Partnership
from promptly liquidating its futures or options contracts and
result in restrictions on redemptions.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
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.
The Partnership has never had illiquidity affect a material
portion of its assets.
Capital Resources - The Partnership does not have, or expect to
have, any capital assets. Redemptions, exchanges and sales of
additional units of limited partnership interest ("Unit(s)") in
the future will affect the amount of funds available for
investment in futures interests in subsequent periods. It is not
possible to estimate the amount and therefore, the impact of
future redemptions of Units.
<PAGE>
Results of Operations
General. The Partnership's results depend on its Trading
Advisors and the ability of the Trading Advisors' trading
programs to take advantage of price movements or other profit
opportunities in the futures, forwards, and options markets. The
following presents a summary of the Partnership's operations for
the quarters and nine months ended September 30, 2000 and 1999,
respectively, and a general discussion of its trading activities
during each period. It is important to note, however, that the
Trading Advisors trade in various markets at different times and
that prior activity in a particular market does not mean that
such market will be actively traded by the Trading Advisors or
will be profitable in the future. Consequently, the results of
operations of the Partnership are difficult to discuss other than
in the context of its Trading Advisors' trading activities on
behalf of the Partnership as a whole and how the Partnership has
performed in the past.
For the Quarter and Nine Months Ended September 30, 2000
For the quarter ended September 30, 2000, the Partnership
recorded total trading losses net of interest income of
$14,646,896 and posted a decrease in Net Asset Value per Unit.
The most significant losses of approximately 4.1% were recorded
in the global stock index futures markets primarily during the
first half of September from long positions in U.S. stock index
<PAGE>
futures as prices declined due to jitters in the technology
sector and a worrisome spike in oil prices. Additional losses
were experienced during early July from short positions in DAX
Index futures as prices moved higher on strength in the
technology sector and inflation-friendly economic data out of the
U.S. A decline in prices during the second half of July,
resulted in additional losses for newly established long
positions in DAX Index futures, as fears of additional interest
rate hikes in the U.S. and the Eurozone took hold. In the global
interest rate futures markets, losses of approximately 3.0% were
recorded primarily during August from long positions in Japanese
government bond futures as prices fell on the back of growing
hopes for an economic recovery and higher interest rates in
Japan. During September, additional losses were recorded from
newly established short positions in Japanese government bond
futures positions as prices surged and long-term rates dropped as
investors sought refuge from falls in U.S. and Japanese stock
prices. In the currency markets, losses of approximately 1.2%
were experienced primarily during August from short positions in
the Japanese yen as its value strengthened versus the U.S. dollar
following comments by a senior Japanese official stating that the
Bank of Japan could raise interest rates again by year-end.
During September, additional losses were experienced from newly
established long positions in the Japanese yen as its value
weakened versus the U.S. dollar after a concerted central bank
intervention of the euro, as well as resurfacing concerns over
<PAGE>
Japan's economy. In the soft commodities markets, losses of
approximately 0.4% were incurred primarily during July from short
cotton futures positions as cotton prices jumped higher amid
fears that the dryness and heat in Texas would slash the size of
the U.S. crop. During August and September, additional losses
were recorded from long positions in cotton futures as prices
moved lower on rain-related quality concerns in the U.S.
Southeast and harvest delays. Offsetting gains were recorded
during July from long sugar futures positions as prices increased
on forecasts that the world surplus will shrink with smaller
crops in 2000-2001. A portion of the Partnership's overall
losses for the quarter were offset by gains of approximately 1.0%
recorded in the energy markets. During August, profits were
recorded from long positions in crude oil futures and its related
products as prices increased as ongoing supply concerns
outweighed signals from Saudi Arabia that it would seek a
suitable production increase to ease the crunch. Additional
gains were recorded from long positions in natural gas futures as
prices moved higher amid supply and storage concerns. In the
metals markets, gains of approximately 0.3% were recorded
throughout a majority of the quarter from long positions in
copper futures as prices increased on technically based buying
and declines in copper supplies. Total expenses for the three
months ended September 30, 2000 were $6,621,878, resulting in a
net loss of $21,268,774. The value of a Unit decreased from
<PAGE>
$13.64 at June 30, 2000 to $12.42 at September 30, 2000.
For the nine months ended September 30, 2000, the Partnership
recorded total trading losses net of interest income of
$22,491,799 and posted a decrease in Net Asset Value per Unit.
The most significant losses of approximately 12.1% were recorded
in the global interest rate futures markets primarily during
April and early May from long positions in U.S. interest rate
futures as prices declined amid fears of additional interest rate
hikes by the U.S. Federal Reserve. Newly established short
positions incurred additional losses later in May and during June
as prices moved higher amid signs that U.S. economic growth has
slowed and the prospects of additional interest rate hikes by the
Federal Reserve were fading. Additional losses were recorded
from long positions in U.S. interest rate futures, particularly
30-year Treasury bond futures, as domestic bond prices reversed
lower during mid September amid steep oil prices and
disappointing budget surplus data that prompted investors to
shift into shorter-dated instruments and corporate debt. This
short-term volatility in U.S. bond prices also resulted in losses
being recorded from trading longer-term European interest rate
futures, particularly German interest rate futures. In the
global stock index futures markets, losses of approximately 3.9%
were experienced primarily during January from short-term
volatile price movements in European stock index futures,
particularly FTSE Index futures. Additional losses were incurred
<PAGE>
from long positions in FTSE Index futures as most stock indices
around the world sagged during September on concerns about costly
crude oil, a weak euro and profit warnings from Intel.
Additional losses were experienced during the first half of
September from long positions in U.S. stock index futures as
prices declined due to jitters in the technology sector. In the
metals markets, losses of approximately 3.7% were experienced
primarily from short gold futures positions as gold prices spiked
sharply higher on February 4. Newly established long positions
in gold futures produced additional losses later in February as
gold prices fell. During mid July, additional losses were
recorded from long gold futures positions as gold prices fell
after the Bank of England announced the results of its gold
auction, which had concluded at a lower price than most dealers
expected. In the currency markets, losses of approximately 2.2%
were incurred primarily during April from long positions in the
Japanese yen as the value of the yen weakened versus the U.S.
dollar amid fears of additional Bank of Japan ("BOJ")
intervention. During May and June, losses were recorded from
short positions in the Japanese yen as its value reversed higher
versus the U.S. dollar following hints by BOJ governor Hayami of
the possible end of the zero interest rate policy in Japan.
During August, additional losses were recorded from short
positions in the Japanese yen as its value strengthened versus
the U.S. dollar following comments by a senior Japanese official
stating that the BOJ could raise interest rates again by year-
<PAGE>
end. During September, additional losses were experienced from
newly established long positions in the Japanese yen as its value
weakened versus the U.S. dollar after concerted central bank
intervention of the euro, as well as resurfacing concerns over
Japan's economy. These losses were partially offset by gains of
approximately 10.8% recorded in the energy markets primarily
during May from long positions in natural gas futures as prices
continued their upward trend, as data released by the American
Gas Association further confirmed fears that inventory levels
remain low. During August and September, additional gains were
recorded from long positions in natural gas futures as prices
moved higher amid supply and storage concerns. Additional gains
were recorded primarily during January and February from long
futures positions in crude oil and its refined products as oil
prices increased on concerns about future output levels from the
world's leading producer countries amid dwindling stockpiles and
increasing demand. During August, additional gains were produced
from long positions in crude oil futures as prices increased as
ongoing supply concerns outweighed signals from Saudi Arabia that
it would seek a suitable production increase to ease the crunch.
In the soft commodities markets, profits of approximately 0.3%
were recorded during May, June and July from long sugar futures
positions as prices moved higher due to strong demand, declining
production from Brazil and forecasts for shrinking global
surplus. Total expenses for the nine months ended September 30,
<PAGE>
2000 were $21,415,685, resulting in a net loss of $43,907,484.
The value of a Unit decreased from $14.91 at December 31, 1999 to
$12.42 at September 30, 2000.
For the Quarter and Nine Months Ended September 30, 1999
For the quarter ended September 30, 1999, the Partnership
recorded total trading losses net of interest income of
$4,572,563 and posted a decrease in Net Asset Value per Unit.
The most significant losses of approximately 4.2% were recorded
in the global stock index futures markets primarily from long
positions in ASE All Ordinaries Index futures as Australian stock
prices moved lower during July on inflationary concerns in the
U.S. During August, losses were experienced from short positions
in this market index as prices increased due to a surge on Wall
Street and on Australian job figures that showed the lowest rate
of unemployment in that country in nine years. In the global
interest rate futures markets, losses of approximately 2.5% were
recorded during September primarily from short positions in
Japanese government bond futures as prices rallied on the
strength of the Japanese yen and expectations that additional
monetary easing in that country will come. Additional losses
were experienced during August from short U.S. interest rate
futures positions as U.S. Treasury prices moved higher on benign
inflation data, a successful corporate bond offering and
anticipation of the Federal Reserve's decision to raise interest
rates.
<PAGE>
Offsetting gains in this market complex were recorded during
September from short German bond futures positions as most
European bond prices decreased on signs of a resurgence in that
region's economy. In the metals markets, losses of approximately
0.2% were experienced primarily from short gold futures positions
as prices skyrocketed due to the results of the Bank of England's
second gold auction on September 21 and the announcement of a
plan by several European central banks to restrict sales of their
gold reserves for five years. In the currency markets, losses of
approximately 0.1% were recorded during July primarily from short
positions in the Swiss franc and the euro as the value of these
currencies strengthened versus the U.S. dollar due to a better-
than-expected German business sentiment survey and a record U.S.
trade deficit. Additional losses were recorded from long
positions in these currencies as the value of the U.S. dollar
rallied higher versus most major currencies on Monday, August 23
amid a rally in U.S. stock prices and on September 10 as an
intervention by the BOJ temporarily strengthened the dollar. As
a result, new short positions were established in the euro and
the Swiss franc only to result in additional losses as these
currencies strengthened versus the U.S. dollar during the latter
half of September after the July U.S. trade figures reflected a
record deficit. Offsetting currency gains were recorded during
August and September from long Japanese yen positions as the
value of the yen increased versus the U.S. dollar due to positive
economic data out of that country and optimism over Japan's
<PAGE>
economic recovery. A portion of the Partnership's overall losses
for the quarter was offset by gains of approximately 5.1%
recorded in energy markets primarily from long positions in crude
oil futures and its refined products, unleaded gas, heating oil
and gas oil, as oil prices climbed higher during August and
September due to a perceived tightness in the gasoline market and
an announcement by OPEC ministers stating that they would
continue to adhere to agreed-upon output cuts through the first
quarter of 2000. Total expenses for the three months ended
September 30, 1999 were $7,823,145 resulting in a net loss of
$12,395,708. The value of a Unit decreased from $16.39 at June
30, 1999 to $15.66 at September 30, 1999.
For the nine months ended September 30, 1999, the Partnership
recorded total trading revenues including interest income of
$15,397,489 and, after expenses, posted a decrease in Net Asset
Value per Unit. The most significant losses of approximately
3.2% were recorded in the global stock index futures markets
primarily from long positions in German stock index futures as
European equity prices moved lower throughout the first quarter
amid rising global bond yields and skepticism regarding the
stability of emerging market economies. Losses were also
incurred during late July from long German stock index futures
positions as prices declined as investors reacted to the
strengthening euro by selling automaker and export-dependent
<PAGE>
stocks. In the metals markets, losses of approximately 2.5% were
recorded particularly during the month of March primarily from
long silver futures positions as prices declined during mid-month
after Berkshire Hathaway's annual report failed to provide any
new information on the company's silver positions. Additional
losses of approximately 1.6% were experienced in the soft
commodities markets primarily from long coffee futures positions
as prices dropped during January on fears spurred by the collapse
of the Brazilian real and during June amid abundant supplies and
warmer temperatures in Brazil. In the global interest rate
futures markets, losses of approximately 1.2% were recorded early
in the first quarter primarily from short Japanese government
bond futures positions as prices surged higher in response to the
BOJ's aggressive easing of monetary policy. Additional losses
were experienced later in the first quarter from newly
established long positions as prices retreated following comments
by BOJ Governor Masaru Hayami that he expected interest rates in
Japan to rise over time. During September, losses were recorded
from short positions in Japanese government bond futures as
prices rallied on the strength of the Japanese yen and
expectations that additional monetary easing in that country will
come. These losses were partially offset by gains of
approximately 8.1% recorded in the energy markets primarily from
long positions in crude oil futures and its refined products,
unleaded gas, heating oil and gas oil, as prices climbed higher
during March following an agreement reached by both OPEC and non-
<PAGE>
OPEC countries to cut total output beginning April 1st. Oil
prices continued to move higher throughout the third quarter due
to declining supplies and increasing demand. In the currency
markets, gains of approximately 4.1% were recorded primarily from
short positions in the Swiss franc and the euro as the value of
these currencies declined versus the U.S. dollar throughout the
first half of the year. The weakness in these European
currencies relative to the U.S. dollar was largely attributed to
concerns regarding European economic growth and potentially
widening interest rate differentials between Europe and the U.S.
Additional currency gains were recorded during August and
September from long Japanese yen positions as the value of the
yen increased versus the U.S. dollar due to positive economic
data out of that country and optimism over Japan's economic
recovery. Total expenses for the nine months ended September 30,
1999 were $22,764,138, resulting in a net loss of $7,366,649.
The value of a Unit decreased from $16.12 at December 31, 1998 to
$15.66 at September 30, 1999.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool involved in the speculative
trading of futures interests. The market-sensitive instruments
held by the Partnership are acquired for speculative trading
purposes only and, as a result, all or substantially all of the
Partnership's assets are at risk of trading loss. Unlike an
<PAGE>
operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.
The futures interests traded by the Partnership involve varying
degrees of market risk. Market risk is often dependent upon
changes in the level or volatility of interest rates, exchange
rates, and prices of financial instruments and commodities.
Fluctuations in market risk based upon these factors result in
frequent changes in the fair value of the Partnership's open
positions, and, consequently, in its earnings and cash flow.
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt at numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
<PAGE>
exceed the Partnership's experiences to date or any reasonable
expectations based upon historical changes in market value.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the
Partnership's market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All quantitative disclosures in this section are
deemed to be forward-looking statements for purposes of the safe
harbor, except for statements of historical fact.
The Partnership accounts for open positions using mark-to-market
accounting principles. Any loss in the market value of the
Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and cash
flow. Profits and losses on open positions of exchange-traded
futures interests are settled daily through variation margin.
The Partnership's risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio. The Partnership estimates VaR using a model
<PAGE>
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk. Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the
Partnership's VaR is approximately four years. The one-day 99%
confidence level of the Partnership's VaR corresponds to the
negative change in portfolio value that, based on observed market
risk factors, would have been exceeded once in 100 trading days.
VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Advisors in their daily risk management
activities.
<PAGE>
The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by primary market risk category at September 30, 2000 and 1999.
At September 30, 2000 and 1999, the Partnership's total
capitalization was approximately $214 million and $279 million,
respectively.
Primary Market September 30, 2000 September 30, 1999
Risk Category Value at Risk Value at Risk
Currency (1.80)% (1.84)%
Interest Rate (1.00) (1.31)
Equity (1.05) (0.39)
Commodity (1.65) (1.07)
Aggregate Value at Risk (2.71)% (2.57)%
Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual Market Categories listed above. Aggregate VaR will be
lower as it takes into account correlation among different
positions and categories.
The table above represents the VaR of the Partnership's open
positions at September 30, 2000 and 1999 only and is not
necessarily representative of either the historic or future risk
of an investment in the Partnership. Because the Partnership's
only business is the speculative trading of futures interests,
the composition of its trading portfolio can change significantly
<PAGE>
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR, as a percentage of total
Net Assets for the four quarterly reporting periods from October
1, 1999 through September 30, 2000.
Primary Market Risk Category High Low Average
Currency (1.80)% (0.93)% (1.33)%
Interest Rate (1.57) (0.72) (1.18)
Equity (1.55) (0.47) (0.98)
Commodity (1.65) (0.70) (1.23)
Aggregate Value at Risk (3.09)% (1.69)% (2.43)%
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by the
Partnership to typically be many times the total capitalization of
the Partnership. The value of the Partnership's open positions
thus creates a "risk of ruin" not typically found in other
investments. The relative size of the positions held may cause the
Partnership to incur losses greatly in excess of VaR within a short
period of time,
<PAGE>
given the effects of the leverage employed and market volatility.
The VaR tables above, as well as the past performance of the
Partnership, give no indication of such "risk of ruin". In
addition, VaR risk measures should be viewed in light of the
methodology's limitations, which include the following:
past changes in market risk factors will not always result
in accurate predictions of the distributions and correlations of
future market movements;
changes in portfolio value in response to market movements
may differ from those of the VaR model;
VaR results reflect past trading positions while future risk
depends on future positions;
VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
the historical market risk factor data used for VaR
estimation may provide only limited insight into losses that
could be incurred under certain unusual market movements.
The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at September 30, 2000 and for the end of the four
quarterly reporting periods from October 1, 1999 through September
30, 2000. Since VaR is based on historical data, VaR should not be
<PAGE>
viewed as predictive of the Partnership's future financial
performance or its ability to manage or monitor risk. There can be
no assurance that the Partnership's actual losses on a particular
day will not exceed the VaR amounts indicated above or that such
losses will not occur more than 1 in 100 trading days.
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. These balances and any market risk
they may represent are immaterial. At September 30, 2000 the
Partnership's cash balance at DWR was approximately 80% of its
total Net Asset Value. A decline in short-term interest rates will
result in a decline in the Partnership's cash management income.
This cash flow risk is not considered material.
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures - constitute
<PAGE>
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act. The
Partnership's primary market risk exposures as well as the
strategies used and to be used by Demeter and the Trading Advisors
for managing such exposures are subject to numerous uncertainties,
contingencies and risks, any one of which could cause the actual
results of the Partnership's risk controls to differ materially
from the objectives of such strategies. Government interventions,
defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in
historical price relationships, an influx of new market
participants, increased regulation and many other factors could
result in material losses as well as in material changes to the
risk exposures and the risk management strategies of the
Partnership. Investors must be prepared to lose all or
substantially all of their investment in the Partnership.
The following were the primary trading risk exposures of the
Partnership as of September 30, 2000, by market sector. It may be
anticipated however, that these market exposures will vary
materially over time.
Currency. The primary market exposure in the Partnership at
September 30, 2000 was in the currency sector. The Partnership's
currency exposure is to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships
<PAGE>
between different currencies and currency pairs. Interest rate
changes as well as political and general economic conditions
influence these fluctuations. The Partnership trades in a large
number of currencies, including cross-rates - i.e., positions
between two currencies other than the U.S. dollar. For the third
quarter of 2000, the Partnership's major exposures were in the euro
currency crosses and outright U.S. dollar positions. Outright
positions consist of the U.S. dollar vs. other currencies. These
other currencies include major and minor currencies. Demeter does
not anticipate that the risk profile of the Partnership's currency
sector will change significantly in the future. The currency
trading VaR figure includes foreign margin amounts converted into
U.S. dollars with an incremental adjustment to reflect the exchange
rate risk inherent to the dollar-based Partnership in expressing
VaR in a functional currency other than dollars.
Interest Rate. The second largest market exposure at September
30, 2000 was in the global interest rate complex. Exposure was
primarily spread across the U.S., Japanese and European interest
rate sectors. Interest rate movements directly affect the price
of the sovereign bond futures positions held by the Partnership
and indirectly affect the value of its stock index and currency
positions. Interest rate movements in one country as well as
relative interest rate movements between countries may materially
impact the Partnership's profitability. The Partnership's
primary interest rate exposure is generally to interest rate
<PAGE>
fluctuations in the United States and the other G-7 countries.
The G-7 countries consists of France, U.S., Britain, Germany,
Japan, Italy and Canada. However, the Partnership also takes
futures positions in the government debt of smaller nations -
e.g. Australia. Demeter anticipates that G-7 and Australian
interest rates will remain the primary interest rate exposures of
the Partnership for the foreseeable future. The changes in
interest rates which have the most effect on the Partnership are
changes in long-term, as opposed to short-term rates. Most of
the speculative futures positions held by the Partnership are in
medium- to long-term instruments. Consequently, even a material
change in short-term rates would have little effect on the
Partnership, were the medium- to long-term rates to remain
steady.
Equity. The primary equity exposure at September 30, 2000 was
to equity price risk in the G-7 countries. The stock index
futures traded by the Partnership are by law limited to futures
on broadly based indices. As of September 30, 2000, the
Partnership's primary exposures were in the DAX (Germany), NASDAQ
(U.S.), FTSE (Britain) and S&P 500 (U.S.) stock indices. The
Partnership is primarily exposed to the risk of adverse price
trends or static markets in the U.S., European and Japanese
indices. Static markets would not cause major market changes but
<PAGE>
would make it difficult for the Partnership to avoid being
"whipsawed" into numerous small losses.
Commodity
Energy. On September 30, 2000, the Partnership's energy exposure
was shared primarily by futures contracts in the crude oil and
natural gas markets. Price movements in these markets result
from political developments in the Middle East, weather patterns,
and other economic fundamentals. It is possible that volatility
will remain high. Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market. Natural gas has exhibited volatility
in prices resulting from weather patterns and supply and demand
factors and may continue in this choppy pattern.
Metals. The Partnership's primary metals market exposure at
September 30, 2000 was to fluctuations in the price of gold and
silver. Although the Trading Advisors may, from time to time,
trade base metals such as aluminum, copper, nickel, tin, lead and
zinc, the principal market exposures of the Partnership have
consistently been in precious metals, gold and silver, and, to a
much lesser extent, platinum. Exposure was evident in the gold
market as gold prices were volatile during the quarter. Silver
prices remained volatile over this period, and the Trading
Advisors took positions when market opportunities developed.
<PAGE>
Soft Commodities and Agriculturals. On September 30, 2000,
the Partnership had exposure in the markets that comprise these
sectors. Most of the exposure, however, was in the cotton, sugar
and corn markets. Supply and demand inequalities, severe weather
disruption and market expectations affect price movements in
these markets.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership as of September 30, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances at September 30, 2000 were in Canadian dollars,
New Zealand dollars, British pounds, and Swedish kronas. The
Partnership controls the non-trading risk of these balances by
regularly converting these balances back into dollars upon
liquidation of the respective position.
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage the market exposure by diversifying
the Partnership's assets among different Trading Advisors, each
<PAGE>
of whose strategies focus on different market sectors and trading
approaches, and by monitoring the performance of the Trading
Advisors daily. In addition, the Trading Advisors establish
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.
Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash. Cash is the only Partnership investment
directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Please refer to Legal Proceedings previously disclosed in the
Partnership's Form 10-Q for the quarter ended March 31, 2000 and
Form 10-K for the year ended December 31, 1999.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Partnership, Morgan Stanley Dean Witter Spectrum Strategic L.P.
("Spectrum Strategic") and Morgan Stanley Dean Witter Spectrum
Global Balanced L.P. ("Spectrum Global Balanced") , collectively
registered 10,000,000 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 to the
Partnership, Spectrum Strategic and Spectrum Global Balanced at
that time, they were subsequently allocated for convenience
purposes as follows: the Partnership 4,000,000, Spectrum Strategic
4,000,000 and Spectrum Global Balanced 2,000,000. The Partnership,
Spectrum Strategic and Spectrum Global Balanced 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 as follows: the Partnership 9,000,000, Spectrum Strategic
6,000,000 and Spectrum Global Balanced 5,000,000. The Partnership,
Spectrum Strategic and Spectrum Global Balanced collectively
registered an additional
<PAGE>
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 to the Partnership, Spectrum
Strategic and Spectrum Global Balanced as follows: the Partnership
5,000,000, Spectrum Strategic 2,500,000 and Spectrum Global
Balanced 1,000,000.
The Partnership registered an additional 5,000,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective on May 11, 1998 (SEC File Number 333-47831).
The Partnership registered an additional 10,000,000 Units pursuant
to another Registration Statement on Form S-1, which became
effective January 21, 1999 (SEC File Number 333-68779).
The managing underwriter for the Partnership 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 September 30, 2000, 24,340,233.275 Units were sold, leaving
8,659,766.725 Units unsold. The aggregate price of the Units sold
through September 30, 2000 was $325,730,683.
<PAGE>
Since DWR has paid all offering expenses 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.
Item 5. OTHER INFORMATION
The management fee paid by the Partnership will be reduced from a
4% to a 2% annual rate on the Net Assets allocated to John W.
Henry & Company, Inc. and from a 4% to a 3% annual rate on the
Net Assets allocated to Campbell & Company, Inc. Additionally,
the monthly incentive fees paid by the Partnership to both John
W. Henry & Company, Inc. and Campbell & Company, Inc. will be
changed from 15% to 20% of Partnership's trading profits, as
determined from the end of the last period in which an incentive
fee was earned. No incentive fee will be paid to a Trading
Advisor unless that Trading Advisor recoups all prior trading
losses on its allocated assets and has again achieved net new
high trading profits for the period.
In the month of October 2000, the clearing commodity broker for
the Partnership was changed from Carr Futures Inc. to Morgan
Stanley & Co., Inc. and Morgan Stanley & Co. International
Limited.
<PAGE>
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
3.01 Form of Amended and Restated Limited Partnership Agreement
of the Partnership is incorporated by reference to Exhibit A of
the Partnership's Prospectus, dated March 6, 2000, filed with
the Securities and Exchange Commission pursuant to Rule
424(b)(3) under the Securities Act of 1933, as amended, on
March 9, 2000.
3.02 Certificate of Limited Partnership, dated April 18, 1994,
is incorporated by reference to Exhibit 3.02 of the
Partnership's Registration Statement on Form S-1 (File No. 33-
80146) filed with the Securities and Exchange Commission on June
10, 1994.
3.03 Certificate of Amendment of Certificate of Limited
Partnership (changing its name to Morgan Stanley Dean Witter
Spectrum Technical) is incorporated by reference to Exhibit 3.03
of the Partnership's Registration Statement on Form S-1 (File
No. 333-6877), filed with the Securities and Exchange Commission
on April 12, 1999.
10.01 Management Agreement, dated as of November 1, 1994,
among the Partnership, Demeter Management Corporation, and
Campbell & Company, Inc. is incorporated by reference to
Exhibit 10.01 of the Partnership's Form 10-K (File No. 0-
26338) for fiscal year ended December 31, 1998.
10.02 Management Agreement, dated as of November 1, 1994,
among the Partnership, Demeter Management Corporation, and
Chesapeake Capital Corporation is incorporated by reference to
Exhibit 10.02 of the Partnership's Form 10-K (File No. 0- 26338)
for fiscal year ended December 31, 1998.
10.03 Management Agreement, dated as of November 1, 1994,
among the Partnership, Demeter Management Corporation, and
John W. Henry & Co. is incorporated by reference to Exhibit
10.03 of the Partnership's Form 10-K (File No. 0-26338) for
fiscal year ended December 31, 1998.
10.04 Amended and Restated Customer Agreement, dated as of
December 1, 1997, between the Partnership and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 1.04 of
the Partnership's Form 10-K (File No. 0-26338) for fiscal year
ended December 31, 1998.
<PAGE>
10.05 Customer Agreement, dated as of December 1, 1997,
among the Partnership, Carr Futures, Inc., and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 10.05 of
the Partnership's Form 10-K (File No. 0-26338) for fiscal year
ended December 31, 1998.
10.06 International Foreign Exchange Master Agreement, dated
as of August 1, 1997, between the Partnership and Carr Futures,
Inc. is incorporated by reference to Exhibit 10.06 of the
Partnership's Form 10-K (File No. 0-26338) for fiscal year
ended December 31, 1998.
10.07 Subscription and Exchange Agreement and Power of
Attorney to be executed by each purchaser of Units is
incorporated by reference to Exhibit B of the Partnership's
Prospectus dated March 6, 2000, filed with the Securities and
Exchange Commission pursuant to Rule 424(b)(3) under the
Securities Act of 1933, as amended, on March 9, 2000.
10.08 Escrow Agreement, dated September 30, 1994, among the
Partnership, Demeter Management Corporation, Dean Witter
Reynolds Inc., and Chemical Bank is incorporated by
reference to Exhibit 10.08 of the Partnership's Form 10-K
(File No. 0-26338) for fiscal year ended December 31, 1998.
(B) Reports on Form 8-K. - None.
<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.
Morgan Stanley Dean Witter Spectrum
Technical L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
November 14, 2000 By: /s/ Raymond E. Koch
Raymond E. Koch
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.
