UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 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___________
<PAGE>
<TABLE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 2000
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 2000 (Unaudited) and December 31, 1999.......2
Statements of Operations for the Quarters Ended
June 30, 2000 and 1999 (Unaudited)....................3
Statements of Operations for the Six Months Ended
June 30, 2000 and 1999 (Unaudited)....................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 2000 and 1999
(Unaudited)...........................................5
Statements of Cash Flows for the Six Months Ended
June 30, 2000 and 1999 (Unaudited)....................6
Notes to Financial Statements (Unaudited)..........7-12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..13-24
Item 3. Quantitative and Qualitative Disclosures about
Market Risk ...................................24-36
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.................................37
Item 2. Changes in Securities and Use of Proceeds......37-39
Item 5. Other Information.................................39
Item 6. Exhibits and Reports on Form 8-K...............39-40
</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>
June 30, December 31,
2000 1999
$ $
(Unaudited)
ASSETS
<S>
<C> <C>
Equity in futures interests trading accounts:
Cash 236,823,693 251,443,755
Net unrealized gain on open contracts6,341,343 18,036,296
Net option premiums ________-___ (74,725)
Total Trading Equity 243,165,036 269,405,326
Subscriptions receivable 2,627,779 3,926,914
Interest receivable (DWR) 941,517 900,955
Total Assets 246,734,332 274,233,195
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 4,009,848 3,057,593
Accrued brokerage fees (DWR) 1,502,336 1,559,481
Accrued management fees 828,875 860,403
Total Liabilities 6,341,059 5,477,477
Partners' Capital
Limited Partners (17,432,050.003 and
17,836,873.576 Units, respectively) 237,787,568 265,907,998
General Partner (191,022.517 Units) 2,605,705 2,
847,720
Total Partners' Capital 240,393,273 268,755,718
Total Liabilities and Partners' Capital 246,734,332 27
4,233,195
NET ASSET VALUE PER UNIT 13.64
14.91
<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 Quarters Ended June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (9,290,867) 14,016,224
Net change in unrealized (4,918,179) 9,480,962
Total Trading Results (14,209,046) 23,497,186
Interest Income (DWR) 2,898,197 2,285,240
Total Revenues (11,310,849) 25,782,426
EXPENSES
Brokerage fees (DWR) 4,606,761 4,766,147
Management fees 2,541,661 2,629,598
Incentive fees _______-___ 430,097
Total Expenses 7,148,422 7,825,842
NET INCOME (LOSS) (18,459,271) 17,956,584
NET INCOME (LOSS) ALLOCATION
Limited Partners (18,261,539)
17,768,474
General Partner (197,732)
188,110
NET INCOME (LOSS) PER UNIT
Limited Partners (1.04)1.08
General Partner
(1.04) 1.08
<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 Six Months Ended June 30,
2000 1999
$ $
REVENUES
<S>
<C> <C>
Trading profit (loss):
Realized (1,902,412) 13,840,196
Net change in unrealized (11,694,953) 1,749,845
Total Trading Results (13,597,365) 15,590,041
Interest Income (DWR) 5,752,462 4,380,011
Total Revenues (7,844,903) 19,970,052
EXPENSES
Brokerage fees (DWR) 9,498,674 9,351,466
Management fees 5,240,647 5,159,430
Incentive fees 54,486 430,097
Total Expenses 14,793,807 14,940,993
NET INCOME (LOSS) (22,638,710) 5,029,059
NET INCOME (LOSS) ALLOCATION
Limited Partners (22,396,695) 4,975,541
General Partner (242,015)
53,518
NET INCOME (LOSS) PER UNIT
Limited Partners (1.27) 0.27
General Partner (1.27)0.27
<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 Six Months Ended June 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 1,984,286.976 31,086,987 160,000
31,246,987
Net Income
- 4,975,541 53,518 5,029,059
Redemptions (776,290.543) (12,276,616)
- (12,276,616)
Partners' Capital,
June 30, 1999 17,032,196.401 $276,240,957 $2,859,907
$279,100,864
Partners' Capital,
December 31, 1999 18,027,896.093 $265,907,998 $2,847,720
$268,755,718
Offering of Units 1,279,005.675 18,494,184
- 18,494,184
Net Loss
- (22,396,695) (242,015)
(22,638,710)
Redemptions (1,683,829.248) (24,217,919) _____-____
(24,217,919)
Partners' Capital,
June 30, 2000 17,623,072.520 $237,787,568 $2,605,705
$240,393,273
<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 CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
2000 1999
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S>
<C> <C>
Net income (loss) (22,638,710) 5
,029,059
Noncash item included in net income (loss):
Net change in unrealized 11,694,953 (
1,749,845)
Increase in operating assets:
Interest receivable (DWR) (40,562) (62,824)
Net option premiums (74,725)
-
Increase (decrease) in operating liabilities:
Accrued brokerage fees (DWR) (57,145) 148,790
Accrued management fees (31,528) 82,090
Incentive fees payable _______-___
430,097
Net cash provided by (used for) operating activities(11,147,717)
3,877,367
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of Units 18,494,184 3
1,246,987
(Increase) decrease in subscriptions receivable 1,299,135
(607,619)
Increase in redemptions payable 952,255 486,091
Redemptions of Units (24,217,919)
(12,276,616)
Net cash provided by (used for) financing activities (3
,472,345) 18,848,843
Net increase (decrease) in cash (14,620,062) 2
2,726,210
Balance at beginning of period 251,443,755
235,044,325
Balance at end of period 236,823,693
257,770,535
<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 financial statements 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
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
an instrument at a specified date and price. Risk arises from
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts. There are numerous factors which may 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,
1999. In June 1999, the FASB issued SFAS No. 137, "Accounting
for Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of SFAS No. 133," which defers the required
implementation of SFAS No. 133 until fiscal years beginning after
June 15, 2000. However, the Partnership had previously elected
to adopt the provisions of SFAS No. 133 beginning with the fiscal
year ended December 31, 1998. SFAS No. 133 supersedes SFAS No.
119 and No. 105, which required the disclosure of average
aggregate fair values and contract/notional values, respectively,
of derivative financial instruments for an entity which carries
its assets at fair value. The application of SFAS No. 133 does
not have a significant effect on the Partnership's financial
statements.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The net unrealized gains on open contracts are reported as a
component of "Equity in futures interests trading accounts" on
the statements of financial condition and totaled $6,341,343 and
$18,036,296 at June 30, 2000 and December 31, 1999, respectively.
Of the $6,341,343 net unrealized gain on open contracts at June
30, 2000, $6,895,669 related to exchange-traded futures and
futures-styled options contracts and $(554,326) related to off-
exchange-traded forward currency contracts.
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 June 30, 2000 and December 31, 1999 mature
through June 2001 and December 2000, respectively. Off-exchange-
traded forward currency contracts held by the Partnership at June
30, 2000 and December 31, 1999 mature through September 2000 and
March 2000, respectively.
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
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 on all open
futures and futures-styled options contracts, which funds, in the
aggregate, totaled $243,719,362 and $268,449,799 at June 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 on open forward
<PAGE>
MORGAN STANLEY DEAN WITTER SPECTRUM TECHNICAL L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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
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 quarter and six months ended June 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 Six Months Ended June 30, 2000
For the quarter ended June 30, 2000, the Partnership recorded
total trading losses net of interest income of $11,310,849 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 5.3% 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
<PAGE>
prices declined amid fears of additional interest rate hikes by
the U.S. Federal Reserve to snuff out inflationary pressures.
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. 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 2.1% were incurred primarily during April from long
positions in Nikkei Index futures as Japanese equity prices,
particularly technology issues, declined following the downward
move of U.S. stock prices. Additional losses were recorded
during June from short positions in Nikkei Index futures
positions as Japanese equity prices moved higher amid strength in
technology issues. In the currency markets, losses of
approximately 1.7% 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. The U.S. dollar continued to weaken versus the yen during
June due to the perception that interest rates in the U.S. may
<PAGE>
have topped out and that economic growth may finally be slowing.
In the metals markets, losses of approximately 1.1% were
experienced primarily during May from trading copper and nickel
futures as prices moved inconsistently on technical factors.
These losses were partially offset by gains of approximately 4.7%
recorded primarily during May in the energy markets 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. Adding to
supply concerns were fears that the U.S. demand will outstrip
production this summer, when inventories are typically refilled
for the winter. In the soft commodities markets, profits of
approximately 1.2% were recorded primarily during May and June
from long sugar futures positions as prices moved higher due to
strong demand and declining production from Brazil. Total
expenses for the three months ended June 30, 2000 were
$7,148,422, resulting in a net loss of $18,459,271. The value of
a Unit decreased from $14.68 at March 31, 2000 to $13.64 at June
30, 2000.
For the six months ended June 30, 2000, the Partnership recorded
total trading losses net of interest income of $7,844,903 and
posted a decrease in Net Asset Value per Unit. The most
significant losses of approximately 9.1% 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
<PAGE>
prices declined amid fears of additional interest rate hikes by
the U.S. Federal Reserve to snuff out inflationary pressures.
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. 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 metals markets, losses of approximately 3.9%
were experienced primarily from short gold futures positions as
gold prices spiked sharply higher on February 4, as short
covering, rumored producer hedge unwinding and fresh buying
fueled panicky rallies. Newly established long positions in gold
futures produced additional losses later in February as gold
prices fell. In the agricultural markets, losses of
approximately 1.3% were incurred primarily during May and June
from long positions in wheat and corn futures as grain prices
moved lower due to heavy rain in the key U.S. growing regions.
In the currency markets, losses of approximately 1.1% 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 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
<PAGE>
interest rate policy in Japan. The U.S. dollar continued to
weaken versus the yen during June due to the perception that
interest rates in the U.S. may have topped out. These losses
were partially offset by gains of approximately 9.5% recorded
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. Adding to supply concerns were fears that the
U.S. demand will outstrip production this summer, when
inventories are typically refilled for the winter. 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. In the soft commodities markets, profits
of approximately 0.6% were recorded primarily during May and June
from long sugar futures positions as prices moved higher due to
strong demand and declining production from Brazil. Total
expenses for the six months ended June 30, 2000 were $14,793,807,
resulting in a net loss of $22,638,710. The value of a Unit
decreased from $14.91 at December 31, 1999 to $13.64 at June 30,
2000.
For the Quarter and Six Months Ended June 30, 1999
For the quarter ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $25,782,426
<PAGE>
and posted an increase in Net Asset Value per Unit. The most
significant gains of approximately 5.3% were recorded in the
global interest rate futures markets primarily from short
positions in U.S. interest rate futures as prices in this market
declined throughout the quarter on inflationary fears and the
possibility of interest rate hikes in the U.S. Additional gains
were recorded from long positions in Japanese government bond
futures as prices increased during the first half of the quarter
when the government proposed no new economic spending plans and
on bearish comments by a Senior Finance official. Gains were
also recorded during the second half of the quarter from newly
established short positions as Japanese bond prices reversed
lower on a more favorable outlook for that country's economy. In
the currency markets, profits of approximately 2.9% were recorded
primarily from short positions in the Swiss franc and the
European common currency as the value of the franc and euro
declined versus the U.S. dollar during the quarter. The weakness
in these European currencies relative to the U.S. dollar was
attributed primarily to concerns regarding European economic
growth, the crisis in Yugoslavia and potentially widening
interest rate differentials with the U.S. Gains were also
recorded in the global stock index futures markets of
approximately 1.3% primarily from long positions in Nikkei Index
futures as prices surged during April on optimism that the
Japanese government would take more measures to stimulate their
economy and during June on news that Japan's gross domestic
<PAGE>
product had grown much more than recent market expectations. In
the energy markets, gains of approximately 1.1% were recorded
primarily during April and June from long positions in crude oil
futures as oil prices rose on signs of better demand,
particularly from Asia, a decline in inventory levels and signs
that OPEC member states were respecting output cuts. A portion
of the Partnership's overall gains for the quarter was offset by
losses experienced in the soft commodities markets of
approximately 1.2% primarily from long coffee futures positions
as prices plummeted during June on the news of a bearish
Commitments of Traders report and on forecasts for warmer
temperatures in Brazil. Losses were also experienced in the
metals markets of approximately 1.0% primarily during May from
long positions in copper futures as prices moved lower as a
result of a technical sell-off and as highly anticipated
production cuts failed to materialize. Additional losses were
recorded during June due to a reduction in London Metal Exchange
warehouse stocks. Total expenses for the three months ended June
30, 1999 were $7,825,842, resulting in net income of $17,956,584.
The value of a Unit increased from $15.31 at March 31, 1999 to
$16.39 at June 30, 1999.
For the six months ended June 30, 1999, the Partnership recorded
total trading revenues including interest income of $19,970,052
and posted an increase in Net Asset Value per Unit. The most
significant gains of approximately 4.3% were recorded in the
<PAGE>
currency markets primarily from short positions in the Swiss
franc and the European common currency as the value of the franc
and euro declined versus the U.S. dollar throughout most 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. Investors also sold
francs and euros for dollars during the first half of the year in
response to the crisis in Yugoslavia on the rationale that the
United States was the safest place to invest during the crisis in
Kosovo. In the energy markets, gains of approximately 2.9% were
recorded primarily from long positions in crude oil futures as
oil prices moved considerably higher during March, April and
June. The substantial recovery in oil prices during the first
half of the year was largely attributed to the news of a decline
in inventory levels that resulted from an agreement reached by
both OPEC and non-OPEC countries to cut total output. Additional
profits were recorded during February and most of the second
quarter from short positions in U.S. bond futures as prices in
this market declined on strong domestic economic data,
inflationary fears and the possibility of interest rate hikes.
Gains were also recorded in the global stock index futures
markets of approximately 1.3% primarily from long positions in
Nikkei Index futures as prices surged on positive economic
factors in Japan during March, optimism during April that the
Japanese government would take more measures to stimulate their
<PAGE>
economy and on news during June that Japan's gross domestic
product had grown much more than recent market expectations. In
the agricultural markets, short futures positions in soybeans and
soybean oil resulted in gains of approximately 0.9% primarily
during January, February and May as prices trended steadily lower
amid a healthy South American crop, fears that Brazil will flood
the market in an effort to aid their ailing economy and on a
bearish USDA supply-demand report. A portion of the
Partnership's overall gains for the year were offset by losses of
approximately 2.3% experienced in the metals markets particularly
during the month of March 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
1.8% 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 warmer temperatures in Brazil and abundant
supplies. Smaller losses of approximately 1.0% were recorded in
the livestock markets primarily from short positions in live
cattle futures during January as prices moved sharply higher on
concerns that winter storms would hurt supplies, as well as
during late May and early June on stronger-than-expected demand.
Total expenses for the six months ended June 30, 1999 were
$14,940,993, resulting in net income of $5,029,059. The value of
<PAGE>
a Unit increased from $16.12 at December 31, 1998 to $16.39 at
June 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
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
<PAGE>
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
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
<PAGE>
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
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.
<PAGE>
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.
The Partnership's Value at Risk in Different Market Sectors
The following tables indicates the VaR associated with the
Partnership's open positions as a percentage of total Net Assets
by primary market risk category at June 30, 2000 and 1999. At
June 30, 2000 and 1999, the Partnership's total capitalization
was approximately $240 million and $279 million, respectively.
Primary Market June 30, 2000 June 30, 1999
Risk Category Value at Risk Value at Risk
Interest Rate (1.57)% (2.11)%
Currency (0.93) (2.36)
Equity (0.47) (1.02)
Commodity (1.32) (0.86)
Aggregate Value at Risk (2.25)% (3.80)%
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
<PAGE>
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 June 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
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 July 1,
1999 through June 30, 2000.
Primary Market Risk Category High Low Average
Interest Rate (2.11)% (1.25)% (1.59)%
Currency (2.58) (0.93) (1.86)
Equity (1.55) (0.47) (1.05)
Commodity (1.32) (0.83) (1.06)
Aggregate Value at Risk (3.80)% (2.25)% (3.08)%
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
<PAGE>
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, given the effects of the leverage employed and
market volatility. The VaR tables above, as well as the past
performance of the Partnership, gives 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
<PAGE>
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 June 30, 2000 and for the end of the four
quarterly reporting periods from July 1, 1999 through June 30,
2000. Since VaR is based on historical data, VaR should not be
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. The balances and any market risk
they may represent are immaterial. At June 30, 2000 the
Partnership's cash balance at DWR was approximately 86% 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
<PAGE>
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
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.
<PAGE>
The following were the primary trading risk exposures of the
Partnership as of June 30, 2000, by market sectors. It may be
anticipated however, that these market exposures will vary
materially over time.
Interest Rate. The primary market exposure in the Partnership at
June 30, 2000 was in the global interest rate sector. Exposure
was primarily spread across the Japanese, U.S., German 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 materially impact the Partnership's profitability. The
Partnership's primary interest rate exposure is generally to
interest rate fluctuations in the United States and the other G-7
countries. The G-7 countries consist 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
<PAGE>
change in short-term rates would have little effect on the
Partnership, were the medium- to long-term rates to remain
steady.
Currency. The second largest market exposure at June 30, 2000 was
in the currency complex. The Partnership's currency exposure is
to exchange rate fluctuations, primarily fluctuations which
disrupt the historical pricing relationships 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 second 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 the 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.
<PAGE>
Equity. The primary equity exposure at June 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 June 30, 2000, the Partnership's
primary exposures were in the DAX (Germany), Nikkei (Japan) and
the CAC 40 (France) 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 would make it difficult for
the Partnership to avoid being "whipsawed" into numerous small
losses.
Commodity.
Energy. On June 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
June 30, 2000 was to fluctuations in the price of gold and
<PAGE>
silver. Although certain Trading Advisors will, from time to
time, trade base metals such as aluminum, copper, nickel 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 also remained volatile over this period, and the Trading
Advisors took positions when market opportunities developed.
Demeter anticipates that gold and silver will remain the primary
metals market exposure for the Partnership.
Soft Commodities and Agriculturals. On June 30, 2000, the
Partnership had exposure in the markets that comprise these
sectors. Most of the exposure, however, was in the sugar, coffee
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 June 30, 2000:
Foreign Currency Balances. The Partnership's primary foreign
currency balances at June 30, 2000 were in Swiss francs, Japanese
yen, Swedish kronas, Australian dollars and British pounds. The
<PAGE>
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
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 June 30, 2000, 23,840,318.477 Units were sold, leaving
9,159,681.523 Units unsold as of June 30, 2000. The aggregate
price of the Units sold through June 30, 2000 is $319,219,076.
<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 "Investment Programs, Use of Proceeds and
Trading Policies" section of the Prospectus included as part of
each Registration Statement.
Item 5. OTHER INFORMATION
Effective July 1, 2000, Lewis A. Raibley, III resigned as Chief
Financial Officer and a Director of Demeter and Dean Witter
Futures Currency Management Inc. Effective July 10, 2000,
Raymond E. Koch replaced Lewis A. Raibley, III as Chief Financial
Officer of Demeter.
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.
<PAGE>
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.
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)
August 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.
