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<DESCRIPTION>ORGAN STANLEY DEAN WITTER SPECTRUM CURRENCY LP
<TEXT>
Morgan Stanley Dean Witter Spectrum Series
Monthly Report
April 2001
Dear Limited Partner:
The Net Asset Value per Unit for each of the six Morgan Stanley Dean Witter
Spectrum Funds as of April 30, 2001 was as follows:
Funds N.A.V. % change
for month
Spectrum Commodity $ 6.97 0.92%
Spectrum Currency $11.48 -2.89%
Spectrum Global Balanced $16.21 -0.29%
Spectrum Select $24.31 -6.96%
Spectrum Strategic $10.49 -1.72%
Spectrum Technical $16.10 -11.09%
Performance in each of the Spectrum Series Funds, with the exception of
Spectrum Commodity, was difficult in April largely because of the widespread,
sharp trend reversals that occurred during the month. Specifically, the long
established upward trend in global interest rate futures and the U.S.
dollar, as
well as the long established downward trend in global stock index futures, all
witnessed a sharp reversal in the other direction. These reversals, which
typically happen after a market has experienced sustained, directional
movement, generally result in a partial giveback of previously recorded
profits.
While the difficult performance was common across all of the Spectrum Series
Funds, with the exception of Spectrum Commodity, the variability between
each fund is attributable to the unique trading philosophy, market exposure,
etc., that is used in each fund. More specific information is provided below
under each fund.
Spectrum Commodity
Spectrum Commodity increased in value during April primarily due to gains
recorded in the metals markets from long positions in platinum and gold
futures as prices reversed higher amid tight supplies and a weaker
U.S. dollar.
Additional gains were recorded from long positions in aluminum and copper
futures as prices moved higher bolstered by the U.S. Federal Reserve's surprise
cut in interest rates. In the agricultural markets, profits were recorded from
long wheat futures positions as prices increased as crop abandonment increases
in the central Plains and wet conditions continued to hamper spring wheat
plantings. In the energy markets, gains were recorded from long positions in
unleaded gas futures as prices soared on concerns regarding growing
expectations for a possible fuel shortage during the peak summer driving
season. A portion of these gains was offset by losses recorded early in the
month in the soft commodities markets from long cocoa futures positions as
prices in this market declined.
Spectrum Currency
Spectrum Currency decreased in value during April primarily due to losses
recorded from short positions in the Japanese yen as the value of the yen
reversed higher versus the U.S. dollar following a surprise interest rate
cut by
the U.S. Federal Reserve and on optimism that the Japanese government would
<PAGE>
unveil an emergency package to revive that country's ailing economy. Losses
were also recorded from short positions in the Australian dollar as its value
strengthened and the U.S. dollar weakened on fears of an economic slowdown
accentuated by additional weakness in U.S. economic data. Additional losses
were experienced early in the month from short positions in the euro and Swiss
franc as the value of these European currencies reversed their March trend and
strengthened versus the U.S. dollar on the uncertainty surrounding the
European Central Bank's interest rate decision, as well as reports that
Switzerland's economy should be robust this year despite a slowdown in other
major economies. A portion of these losses was offset by gains recorded from
short positions in the Singapore dollar as its value weakened relative to the
U.S. dollar following weakness in the regional Pacific Rim currencies late in
the month. Additional gains were recorded from long positions in the Mexican
peso as its value strengthened versus the U.S. dollar following better-than-
expected economic data reported in Mexico.
Spectrum Global Balanced
Spectrum Global Balanced decreased in value during April primarily due to
losses recorded during mid-month in the global interest rate futures markets
from long positions in European interest rate futures as prices moved lower on
reports of the European Central Bank's decision to leave interest rates on
hold. In the currency markets, losses were recorded early in the month from
short positions in the euro as its value reversed their March trend and
strengthened
relative to the U.S. dollar and other major currencies as continued evidence of
economic weakness increased hopes that the European Central Bank would
possibly cut interest rates. In the energy markets, losses were recorded
early in the month from short futures positions in crude oil and its related
products as oil prices reversed sharply higher on concerns over tight summer
supplies. A majority of these losses was offset by gains recorded during the
first half of the month in the global stock index futures markets from long
positions in U.S. stock index futures as domestic equity prices reversed higher
on positive economic data, optimism about corporate earnings and following
the U.S. Federal Reserve's surprise interest rate cut. Additional gains were
recorded from long positions in German stock index futures as prices followed
U.S. equity prices higher.
Spectrum Select
Spectrum Select decreased in value during April primarily due to losses
recorded during mid-month in the global interest rate futures markets. A
portion of previously recorded profits was given back from long positions in
European interest rate futures as prices reversed sharply lower, after trending
higher previously, on reports of the European Central Bank's decision to leave
interest rates on hold. Additional losses were experienced from long positions
in U.S. interest rate futures as bond prices reversed sharply downward
following a rally in stock prices as investors deserted fixed income
securities in an asset shift. In the currency markets, losses were recorded
early in the month from short positions in the euro and Swiss franc as the
value of these European currencies reversed their March trend and
strengthened versus the U.S. dollar on the uncertainty surrounding the
European Central Bank's interest rate decision, as well as reports that
Switzerland's economy should be robust this year despite a slowdown in other
major economies. Smaller currency losses were recorded from short positions
in the Japanese yen as the value of the yen
<PAGE>
reversed higher versus the U.S. dollar following a surprise interest rate cut
by the U.S. Federal Reserve and on optimism that the Japanese government
would unveil an emergency package to revive that country's ailing economy.
In the global stock index futures markets, losses were incurred during
the first
half of the month from short positions in German stock index futures as prices
reversed higher on renewed hopes that the worst may be over for badly beaten
technology and telecom stocks. A portion of these losses was offset by gains
recorded early in the month in the energy markets from long unleaded gas
futures positions as prices increased on concerns over gasoline supply and
growing expectations for a possible fuel shortage during the peak summer
driving season.
Spectrum Strategic
Spectrum Strategic decreased in value during April primarily due to losses
recorded early in the month in the energy markets from short positions in
unleaded gas futures as prices increased on concerns over gasoline supply and
growing expectations for a possible fuel shortage during the peak summer
driving season. There losses were partially offset by gains recorded early in
the month from long positions in heating oil futures as prices increased on
supply concerns amid refinery production problems and expectations that
inventory data will show drawdowns. In the global interest rate futures
markets, losses were experienced during mid-month from long positions in
European interest rate futures as prices moved lower on reports of the
European Central Bank's decision to leave interest rates on hold. In the
currency markets, losses were recorded early in the month from short positions
in the euro and Swiss franc as the value of these European currencies reversed
their March trend and strengthened versus the U.S. dollar on the uncertainty
surrounding the European Central Bank's interest rate decision, as well as
reports that Switzerland's economy should be robust this year despite a
slowdown in other major economies. A portion of these losses was offset by
gains recorded in the soft commodities markets from long lumber futures
positions as prices soared higher amid low inventories combined with warmer
weather in northern Canada.
<PAGE>
Spectrum Technical
Spectrum Technical decreased in value during April primarily due to losses
recorded early in the month in the global interest rate futures markets. A
portion of previously recorded profits was given back from long positions in
U.S. interest rate futures as prices reversed sharply downward, after trending
higher earlier this year, due to a rally in stock prices as investors deserted
fixed income securities in an asset shift. Losses were also recorded from long
positions in Japanese government bond futures as prices fell early in the month
after comments on fiscal policy by candidates for leader of the Japanese
Liberal Democratic Party. In the currency markets, losses were recorded from
short positions in the Japanese yen as the value of the yen reversed higher
versus the U.S. dollar following a surprise interest rate cut by the U.S.
Federal Reserve and on optimism that the Japanese government would unveil an
emergency package to stimulate that country's ailing economy. Smaller
currency losses were recorded early in the month from short positions in the
Australian dollar and Canadian dollar as their respective values strengthened
versus the U.S. dollar. In the global stock index futures markets, losses were
incurred during the first half of the month from short positions in German
stock index futures as prices reversed higher on renewed hopes that the worst
may be over for badly beaten technology and telecom stocks. In the
energy markets,
losses were experienced early in the month from short futures positions in
crude oil and heating oil as prices reversed sharply higher on supply concerns
amid refinery production problems and expectations that inventory data will
show drawdowns. These losses were mitigated by profits recorded early in the
month from long unleaded gas futures positions as prices increased on
concerns over gasoline supply and growing expectations for a possible fuel
shortage during the peak summer driving season.
Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd
Floor, New York, NY 10048, or your Morgan Stanley Financial Advisor.
I hereby affirm, that to the best of my knowledge and belief, the information
contained in this report is accurate and complete. Past performance is not a
guarantee of future results.
Sincerely,
Robert E. Murray
Chairman
Demeter Management Corporation
General Partner
<PAGE>
<TABLE>
Historical Fund Performance
Presented below is the percentage change in Net Asset Value per Unit from the start of each
calendar each the Fund has traded. Also provided is the inception-to-date return and the
annualized return since inception for each Fund. PAST PERFORMANCE IS NOT
NECESSARILY INDICATIVE OF FUTURE RESULTS.
<CAPTION>
Funds Year Return
<S> <C> <C>
Spectrum Commodity
1998 -34.3%
1998 15.8%
2000 3.2%
2001 (4 months) -11.2%
Inception-to-Date Return: -30.2%
Annualized Return: -10.3%
_____________________________________________________________________________________
Spectrum Currency 2000 (6 months) 11.7%
2001 (4 months) 2.8%
Inception-to-Date Return: 14.8%
______________________________________________________________________________________
Spectrum Global Balanced
1994 (2 months) -1.7%
1995 22.8%
1996 -3.6%
1997 18.2%
1999 16.4%
1999 0.7%
2000 0.9%
2001 (4 months) -0.3%
Inception-to-Date Return: 62.1%
Annualized Return: 7.7%
_____________________________________________________________________________________
Spectrum Select
1991 (5 months) 31.2%
1992 -14.4%
1993 41.6%
1994 -5.1%
1995 23.6%
1996 5.3%
1997 6.2%
1998 14.2%
1999 -7.6%
2000 7.1%
2001 (4 months) 3.1%
Inception-to-Date Return: 143.1%
Annualized Return 9.5%
_____________________________________________________________________________________
</TABLE>
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<TABLE>
267:
<CAPTION>
Spectrum Strategic
<C> <C>
1994 (2 months) 0.1%
1995 10.5%
1996 -3.5%
1997 0.4%
1998 7.8%
1999 37.2%
2000 -33.1%
2001 (4 months) -1.1%
Inception-to-Date Return: 4.9%
Annualized Return: 0.7%
Spectrum Technical
1994 (2 months) -2.2%
1995 17.6%
1996 18.3%
1997 7.5%
1998 10.2%
1999 -7.5%
2000 7.8%
2001 (4 months) 0.1%
Inception-to-Date Return: 61.0%
Annualized Return: 7.6%
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended April 30, 2001
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Currency _ Spectrum Global Balanced
Percentage of Percentage of Percentage of
April 1, 2001 April 1, 2001 April 1, 2001
Beginning Beginning Beginning
Amount Net Asset Value Amount Net Asset Value Amount Net Asset Value
$ % $ % $ %
<CAPTION>
REVENUES
<S> <C> <C> <C> <C> <C> <C>
Trading profit (loss):
Realized (443,991) (2.62) - - (676,914) (1.19)
Net change in unrealized 650,415 3.84 (603,967) (2.60) 594,541 1.05
Total Trading Results 206,424 1.22 (603,967) (2.60) (82,373) (0.14)
Interest Income (Note 2) 50,125 0.30 59,762 0.26 197,082 0.35
Total Revenues 256,549 1.52 (544,205) (2.34) 114,709 0.21
EXPENSES
Brokerage fees (Note 2) 64,887 0.39 89,109 0.38 217,658 0.39
Management fees (Note 3) 35,265 0.21 38,743 0.17 59,147 0.11
Total Expenses 100,152 0.60 127,852 0.55 276,805 0.50
NET INCOME (LOSS) 156,397 0.92 (672,057) (2.89) (162,096) (0.29)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 2001
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean Witter Morgan Stanley Dean Witter
Spectrum Commodity Spectrum Currency Spectrum Global Balanced .
Units Amount Per Unit Units Amount Per Unit Units Amount Per Unit
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
April 1, 2001 2,450,113.873 16,927,226 6.91 1,966,337.295 23,245,942 11.82 3,492,987.354 56,781,011 16.26
Net Income (Loss) - 156,397 0.06 - (672,057) (0.34) - (162,096) (0.05)
Redemptions (55,214.876) (384,848) 6.97 (6,505.855) (74,687) 11.48 (30,658.581) (496,976) 16.21
Subscriptions 17,017.225 118,610 6.97 157,190.699 1,804,549 11.48 44,860.523 727,189 16.21
Net Asset Value,
April 30, 2001 2,411,916.222 16,817,385 6.97 2,117,022.139 24,303,747 11.48 3,507,189.296 56,849,128 16.21
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Morgan Stanley Dean Witter Spectrum Series
Statements of Operations
For the Month Ended April 30, 2001
(Unaudited)
<CAPTION>
Morgan Stanley Dean Witter Morgan Stanley Dean Witter Morgan Stanley Dean Witter
Spectrum Select Spectrum Strategic _ Spectrum Technical
Percentage of Percentage of Percentage of
April 1, 2001 April 1, 2001 April 1, 2001
Beginning Beginning Beginning
Amount Net Asset Value Amount Net Asset Value Amount Net Asset Value
$ % $ % $ %
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Trading profit (loss):
Realized 128,800 0.05 (1,773,050) (2.43) (11,988,629) (3.98)
Net change in unrealized (15,963,959) (6.43) 927,343 1.27 (19,722,796) (6.55)
Total Trading Results (15,835,159) (6.38) (845,707) (1.16) (31,711,425) (10.53)
Interest Income (Note 2) 681,752 0.27 210,669 0.29 809,323 0.27
Total Revenues (15,153,407) (6.11) (635,038) (0.87) (30,902,102) (10.26)
EXPENSES
Brokerage fees (Note 2) 1,500,187 0.60 441,031 0.60 1,820,109 0.60
Management fees (Note 3) 620,766 0.25 182,496 0.25 697,928 0.23
Total Expenses 2,120,953 0.85 623,527 0.85 2,518,037 0.83
NET LOSS (17,274,360) (6.96) (1,258,565) (1.72) (33,420,139) (11.09)
Morgan Stanley Dean Witter Spectrum Series
Statements of Changes in Net Asset Value
For the Month Ended April 30, 2001
(Unaudited)
Morgan Stanley Dean Witter Morgan Stanley Dean Witter Morgan Stanley Dean Witter
Spectrum Select Spectrum Strategic Spectrum Technical .
Units Amount Per Unit Units Amount Per Unit Units Amount Per Unit
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
April 1, 2001 9,504,953.148 248,306,533 26.12 6,840,418.230 72,998,325 10.67 16,634,615.430 301,259,198 18.11
Net Loss - (17,274,360) (1.81) - (1,258,565) (0.18) - (33,420,139) (2.01)
Redemptions (105,175.236) (2,556,810) 24.31 (98,081.818) (1,028,878) 10.49 (145,708.838) (2,345,912) 16.10
Subscriptions 122,093.087 2,968,083 24.31 97,905.517 1,027,029 10.49 215,910.150 3,476,153 16.10
Net Asset Value,
April 30, 2001 9,521,870.999 231,443,446 24.31 6,840,241.929 71,737,911 10.49 16,704,816.742 268,969,300 16.10
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
Organization - Morgan Stanley Dean Witter Spectrum Commodity
L.P. ("Spectrum Commodity", Morgan Stanley Dean Witter
Spectrum Currency L.P. ("Spectrum Currency"), Morgan Stanley
Dean Witter Spectrum Global Balanced L.P. ("Spectrum Global
Balanced"), Morgan Stanley Dean Witter Spectrum Select L.P.
("Spectrum Select"), Morgan Stanley Dean Witter Spectrum
Strategic L.P. ("Spectrum Strategic") and Morgan Stanley Dean
Witter Spectrum Technical L.P. ("Spectrum Technical"),
(individually, a "Partnership" or collectively, the
"Partnerships"), are limited partnerships organized to engage
primarily in the speculative trading of futures, forward, and
options contracts on physical commodities and other commodity
interests, including, but not limited to foreign currencies,
financial instruments, metals, energy and agricultural
products (collectively, "futures interests").
The general partner for each Partnership is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker
for the Partnerships is Morgan Stanley DW Inc. ("Morgan
Stanley DW"). Dean Witter Reynolds Inc. changed its name to
Morgan Stanley DW Inc., effective April 2, 2001. The clearing
commodity brokers for the Partnerships are Morgan Stanley &
Co. Incorporated ("MS & Co.") and Morgan Stanley & Co.
International ("MSIL"). Morgan Stanley Dean Witter
Commodities Management, Inc. ("MSCM") is the trading advisor
to Spectrum Commodity. Demeter, Morgan Stanley DW, MS & Co.,
MSCM and MSIL are wholly-owned subsidiaries of Morgan Stanley
Dean Witter & Co.
Effective May 1, 2001 Spectrum Select entered into a
management agreement with Northfield Trading L.P.,
("Northfield") adding Northfield as its fourth trading advisor
to the Partnership.
Demeter is required to maintain a 1% minimum interest in the
equity of each Partnership and income (losses) are shared by
Demeter and the Limited Partners based upon their proportional
ownership interests.
Use of Estimates - The financial statements are prepared in
accordance with accounting principles generally accepted in
the United States of America, which require management to make
estimates and assumptions that affect the reported amounts in
the financial statements and related disclosures. Management
believes that the estimates utilized in the preparation of the
financial statements are prudent and reasonable. Actual
results could differ from those estimates.
Revenue Recognition - Futures interests are open commitments
until settlement date. They are valued at market on a daily
basis and the resulting net change in unrealized gains and
losses is reflected in the changes in unrealized profits
(losses) on open contracts from one period to the next in the
statements of operations. Monthly, Morgan Stanley DW pays
each Partnership interest income on 80% of its average daily
"Net Assets" (as defined in the limited partnership
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
agreements) for the month in the case of Spectrum Commodity,
Spectrum Currency, Spectrum Select, Spectrum Strategic and
Spectrum Technical, and 100% in the case of Spectrum Global
Balanced. The interest rate is equal to a prevailing rate on
U.S. Treasury bills. For purposes of such interest payments,
Net Assets do not include monies due the Partnerships on
futures interests, but not actually received.
Net Income (Loss) per Unit - Net income (loss) per unit of
limited partnership interest ("Unit(s)") is computed using the
weighted average number of Units outstanding during the
period.
Brokerage and Related Transaction Fees and Costs - The
brokerage fees for Spectrum Commodity, Spectrum Currency, and
Spectrum Global Balanced are accrued at a flat monthly rate of
1/12 of 4.6% (a 4.6% annual rate) of Net Assets as of the
first day of each month.
Brokerage fees for Spectrum Select, Spectrum Strategic and
Spectrum Technical are accrued at a flat monthly rate of 1/12
of 7.25% (a 7.25% annual rate) of Net Assets as of the first
day of each month.
Such brokerage fees currently cover all brokerage commissions,
transaction fees and costs and ordinary administrative and
continuing offering expenses.
Operating Expenses - The Partnerships incur monthly management
fees and may incur incentive fees. All common administrative
and continuing offering expenses including legal, auditing,
accounting, filing fees and other related expenses are borne
by Morgan Stanley DW through the brokerage fees paid by each
Partnership.
Income Taxes - No provision for income taxes has been made in
the accompanying financial statements, as partners are
individually responsible for reporting income or loss based
upon their respective share of each Partnership's revenues and
expenses for income tax purposes.
Distributions - Distributions, other than redemptions of
Units, are made on a pro-rata basis at the sole discretion of
Demeter. No distributions have been made to date.
Continuing Offering - Units of each Partnership are offered at
a price equal to 100% of the Net Asset Value per Unit as of
the close of business on the last day of the month. No
selling commissions or charges related to the continuing
offering of Units are paid by the Limited Partners or the
Partnership. Morgan Stanley DW pays all such costs.
Redemptions - Limited Partners may redeem some or all of their
Units at 100% of the Net Asset Value per Unit as of the end of
the last day of any month that is at least six months after
the closing at which a person first becomes a Limited Partner,
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
upon five business days advance notice by redemption form to
Demeter. Thereafter, Units redeemed on or prior to the last
day of the twelfth month after such Units were purchased will
be subject to a redemption charge equal to 2% of the Net Asset
Value of a Unit on the date of such redemption. Units
redeemed after the last day of the twelfth month and on or
prior to the last day of the twenty-fourth month after which
such Units were purchased will be subject to a redemption
charge equal to 1% of the Net Asset Value of a Unit on the
date of such redemption. Units redeemed after the last day of
the twenty-fourth month after which such Units were purchased
will not be subject to a redemption charge. The foregoing
redemptions charges are paid to Morgan Stanley DW.
Redemptions must be made in whole Units, in a minimum amount
of 50 Units, unless a Limited Partner is redeeming his entire
interest in a Partnership.
Exchanges - On the last day of the first month which occurs
more than six months after a person first becomes a Limited
Partner in any of the Partnerships, and at the end of each
month thereafter, Limited Partners may exchange their
investment among the Partnerships (subject to certain
restrictions outlined in the Limited Partnership Agreements)
without paying additional charges.
Dissolution of the Partnership - Spectrum Commodity will
terminate on December 31, 2027. Spectrum Currency, Spectrum
Global Balanced, Spectrum Strategic and Spectrum Technical
will terminate on December 31, 2035 and Spectrum Select will
terminate on December 31, 2025 regardless of financial
condition at such time, or at an earlier date if certain
conditions occur as defined in each Partnership's Limited
Partnership Agreement.
2. Related Party Transactions
The Partnerships pay brokerage fees to Morgan Stanley DW was
described in Note 1. Spectrum Commodity pays management fees
and incentive fees (if applicable) to MSCM. Each
Partnership's cash is on deposit with Morgan Stanley DW, MS &
Co. and MSIL in futures interests trading accounts to meet
margin requirements as needed. Morgan Stanley DW pays
interest on these funds as described in Note 1.
3. Trading Advisors
Demeter, on behalf of each Partnership, retains certain
commodity trading advisors to make all trading decisions for
the Partnerships. The trading advisors for each Partnership
are as follows:
Morgan Stanley Dean Witter Spectrum Commodity L.P.
Morgan Stanley Dean Witter Commodities Management Inc.
Morgan Stanley Dean Witter Spectrum Currency L.P.
John W. Henry & Company, Inc. ("JWH")
Sunrise Capital Partners, LLC ("Sunrise")
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Continued)
Morgan Stanley Dean Witter Spectrum Global Balanced L.P.
RXR, Inc.
Morgan Stanley Dean Witter Spectrum Select L.P.
EMC Capital Management, Inc.
Rabar Market Research, Inc.
Sunrise Capital Management, Inc.
Northfield Trading L.P. (commencing 5/1/01)
Morgan Stanley Dean Witter Spectrum Strategic L.P.
Allied Irish Capital Management, Ltd. ("AICM")
Blenheim Investments, Inc. ("Blenheim")
Eclipse Capital Management, Inc. ("Eclipse")
Morgan Stanley Dean Witter Spectrum Technical L.P.
Campbell & Company, Inc.) ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
Compensation to the trading advisors by the Partnerships
consists of a management fee and an incentive fee as follows:
Management Fee - The management fee for Spectrum Commodity is
accrued at a rate of 5/24 of 1% of Net Assets on the first day
of each month (a 2.5% annual rate).
The management fee for Spectrum Currency is accrued at a rate
of 1/12 of 2% of Net Assets on the first day of each month (a
2% annual rate).
The management fee for Spectrum Global Balanced is accrued at
a rate of 5/48 of 1% of Net Assets on the first day of each
month (a 1.25% annual rate).
The management fee for Spectrum Select is accrued at a rate of
1/4 of 1% of Net Assets on the first day of each month (a 3%
annual rate).
The management fee for Spectrum Strategic is accrued at a rate
of 1/12 of 3% per month of Net Assets on the first day of each
month (a 3% annual rate).
The management fee for Spectrum Technical is accrued at a rate
of 1/12 of 2% of Net Assets allocated to JWH on the first day
of each month, 1/12 of 3% of Net Assets allocated to Campbell
on the first day of each month, and 1/12 of 4% of Net Assets
allocated to Chesapeake on the first day of each month (annual
rates of 2%, 3% and 4% respectively).
Incentive Fee - Spectrum Commodity pays an annual incentive
fee equal to 17.5% of Partnership's trading profits, as
determined from the end of the last period in which an
incentive fee was earned.
<PAGE>
Morgan Stanley Dean Witter Spectrum Series
Notes to Financial Statements
(Concluded)
Spectrum Currency pays a monthly incentive fee equal to 20% of
the trading profits experienced with respect to each trading
advisor's allocated Net Assets as of the end of each month.
Spectrum Global Balanced, Spectrum Select and Spectrum
Strategic each pay a monthly incentive fee equal to 15% of the
trading profits experienced with respect to each trading
advisor's allocated Net Assets as of the end of each calendar
month.
Spectrum Technical pays a monthly incentive fee equal to 20%
of the trading profits experienced with respect to the Net
Assets allocated to Campbell and JWH and 19% of the trading
profits experienced with respect to the Net Assets allocated
to Chesapeake as of the end of each calendar month.
Trading profits for the Partnerships represent the amount by
which profits from futures, forward and options trading exceed
losses after brokerage and management fees are deducted.
For all Partnerships, when trading losses are incurred, no
incentive fees will be paid in subsequent months until all
such losses are received. Cumulative trading losses are
adjusted on a pro-rata basis for the net amount of each
month's subscriptions and redemptions.
</TEXT>
</DOCUMENT>