-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vyjm8jcOSVB5x9P3EQnut8ss4v/0C1KBi625JCM6u0E1A/aNUJXwxTegeyxZc7nx pj0KFjLATGQD+Z9LqoQRFA== 0000873799-98-000006.txt : 19980817 0000873799-98-000006.hdr.sgml : 19980817 ACCESSION NUMBER: 0000873799-98-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEAN WITTER SPECTRUM SELECT LP CENTRAL INDEX KEY: 0000873799 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 133619290 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19511 FILM NUMBER: 98690394 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CNTR - 62ND FLR STREET 2: C/O DEMETER MANAGEMENT CORP CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2123928899 MAIL ADDRESS: STREET 1: C/O DEMETER MANAGEMENT CORP STREET 2: TWO WORLD TRADE CENTER CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: WITTER DEAN SELECT FUTURES FUND LP DATE OF NAME CHANGE: 19930328 10-Q 1 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, 1998 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 No. 0-19511 DEAN WITTER SPECTRUM SELECT L.P. (Exact name of registrant as specified in its charter) Delaware 13-3619290 (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 Dean Witter Select Futures Fund L.P. (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 DEAN WITTER SPECTRUM SELECT L.P. INDEX TO QUARTERLY REPORT ON FORM 10-Q June 30, 1998
PART I. FINANCIAL INFORMATION Item 1. Financial Statements Statements of Financial Condition June 30, 1998 (Unaudited) and December 31, 1997......2 Statements of Operations for the Quarters Ended June 30, 1998 and 1997 (Unaudited)...................3 Statements of Operations for the Six Months Ended June 30, 1998 and 1997 (Unaudited)...................4 Statements of Changes in Partners' Capital for the Six Months Ended June 30, 1998 and 1997 (Unaudited)..........................................5 Statements of Cash Flows for the Six Months Ended June 30, 1998 and 1997 (Unaudited)...................6 Notes to Financial Statements (Unaudited)........ 7-13 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.14-19 Part II. OTHER INFORMATION Item 1. Legal Proceedings................................20 Item 2. Changes in Securities and Use of Proceeds.....20-22 Item 6. Exhibits and Reports on Form 8-K.................23
PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements DEAN WITTER SPECTRUM SELECT L.P. STATEMENTS OF FINANCIAL CONDITION
June 30, December 31, 1998 1997 $ $ (Unaudited) ASSETS Equity in Commodity futures trading accounts: Cash 151,884,281 158,178,925 Net unrealized gain on open contracts 5,659,096 9,627,161 Total Trading Equity 157,543,377 167,806,086 Subscriptions receivable 3,488,888 - Interest receivable (DWR) 561,726 638,204 Due from DWR - 1,097,517 Total Assets 161,593,991 169,541,807 LIABILITIES AND PARTNERS' CAPITAL Liabilities Redemptions payable 2,323,087 2,272,314 Accrued brokerage fees (DWR) 938,360 - Accrued management fees 388,287 423,673 Accrued administrative expenses - 72,499 Total Liabilities 3,649,734 2,768,486 Partners' Capital Limited Partners (7,522,614.016 and 7,867,474.900 Units, respectively) 155,198,757 163,999,307 General Partner (133,076.700 Units) 2,745,500 2,774,014 Total Partners' Capital 157,944,257 166,773,321 Total Liabilities and Partners' Capital 161,593,991 169,54 1,807 NET ASSET VALUE PER UNIT 20.63 20.85 The accompanying notes are an integral part of these financial statements.
DEAN WITTER SPECTRUM SELECT L.P. STATEMENTS OF OPERATIONS (Unaudited)
For the Quarters Ended June 30, 1998 1997 $ $ REVENUES Trading profit (loss): Realized (5,464,460) (1,555,509) Net change in unrealized 481,970 (8,238,137) Total Trading Results (4,982,490) (9,793,646) Interest Income (DWR) 1,658,741 1,924,693 Total Revenues (3,323,749) (7,868,953) EXPENSES Brokerage fees (DWR) 2,345,736 2,459,279 Management fees 1,173,394 1,300,665 Transaction fees and costs 219,256 276,600 Administrative expenses 25,000 27,000 Total Expenses 3,763,386 4,063,544 NET LOSS (7,087,135) (11,932,497) NET LOSS ALLOCATION Limited Partners (6,967,561) (11,749,366) General Partner (119,574) (183,131) NET LOSS PER UNIT Limited Partners (.90) (1.38) General Partner (.90) (1.38) The accompanying notes are an integral part of these financial statements.
DEAN WITTER SPECTRUM SELECT L.P. STATEMENTS OF OPERATIONS (Unaudited)
For the Six Months Ended June 30, 1998 1997 $ $ REVENUES Trading profit (loss): Realized 6,761,724 12,350,402 Net change in unrealized (3,968,065) (4,447,002) Total Trading Results 2,793,659 7,903,400 Interest Income (DWR) 3,402,988 3,710,340 Total Revenues 6,196,647 11,613,740 EXPENSES Brokerage fees (DWR) 4,707,505 5,014,886 Management fees 2,447,663 2,652,691 Transaction fees and costs 625,328 571,552 Administrative expenses 64,000 54,000 Incentive fees - 49,988 Total Expenses 7,844,496 8,343,117 NET INCOME (LOSS) (1,647,849) 3,270,623 NET INCOME (LOSS) ALLOCATION Limited Partners (1,619,335) 3,213,297 General Partner (28,514) 57,326 NET INCOME (LOSS) PER UNIT Limited Partners (.22) .43 General Partner (.22) .43 The accompanying notes are an integral part of these financial statements.
DEAN WITTER SPECTRUM SELECT L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the Six Months Ended June 30, 1998 and 1997 (Unaudited)
Units of Partnership Limited General Interest Partners Partner Total Partners' Capital, December 31, 1996 8,346,327.700 $161,174,820 $2,611,465 $163,786,285 Subscriptions 573,746.700 12,056,614 - 12,056,614 Net Income - 3,213,297 57,326 3,270,623 Redemptions (451,313.500) (9,276,487) - (9,276,487) Partners' Capital, June 30, 1997 8,468,760.900 $167,168,244 $2,668,791 $169,837,035 Partners' Capital, December 31, 1997 8,000,551.600 $163,999,307 $2,774,014 $166,773,321 Subscriptions 181,984.824 3,751,903 - 3,751,903 Net Loss - (1,619,335) (28,514) (1,647,849) Redemptions (526,845.708) (10,933,118) - (10,933,118) Partners' Capital, June 30, 1998 7,655,690.716 $155,198,757 $2,745,500 $157,944,257 The accompanying notes are an integral part of these financial statements.
DEAN WITTER SPECTRUM SELECT L.P. STATEMENTS OF CASH FLOWS (Unaudited)
For the Six Months Ended June 30, 1998 1997 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) (1,647,849) 3 ,270,623 Noncash item included in net income (loss): Net change in unrealized 3,968,065 4 ,447,002 (Increase) decrease in operating assets: Interest receivable (DWR) 76,478 (82,599) Due from DWR 1,097,517 ( 336,581) Net option premiums - 18,205 Increase (decrease) in operating liabilities: Accrued brokerage fees (DWR) 938,360 272,523 Accrued management fees (35,386) 25,735 Accrued administrative expenses (72,499) (17,017) Accrued transaction fees and costs - (15,655) Incentive fees payable - ( 348,459) Net cash provided by operating activities 4,324,686 7 ,233,777 CASH FLOWS FROM FINANCING ACTIVITIES (Increase) decrease in subscriptions receivable(3,488,888) 5,365,420 Offering of units 3,751,903 1 2,056,614 Increase (decrease) in redemptions payable50,773 ( 799,646) Redemptions of units (10,933,118) ( 9,276,487) Net cash provided by (used for) financing activities (1 0,619,330) 7,345,901 Net increase (decrease) in cash (6,294,644) 1 4,579,678 Balance at beginning of period 158,178,925 1 54,784,007 Balance at end of period 151,884,281 1 69,363,685 The accompanying notes are an integral part of these financial statements.
DEAN WITTER SPECTRUM SELECT 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 Dean Witter Spectrum Select L.P. (the "Partnership"). The financial statements and condensed notes herein should be read in conjunction with the Partnership's December 31, 1997 Annual Report on Form 10-K. 1. Organization Dean Witter Spectrum Select L.P., (formerly Dean Witter Select Futures Fund) is a limited partnership organized to engage in the speculative trading of commodity futures contracts, commodity options contracts and forward contracts on foreign currencies (collectively, "futures interests"). On May 11, 1998, the Partnership became one of the Dean Witter Spectrum Series of funds, comprised of Dean Witter Spectrum Global Balanced L.P. (formerly, Dean Witter Spectrum Balanced L.P.), Dean Witter Spectrum Strategic L.P., Dean Witter Spectrum Technical L.P. and Dean Witter Spectrum Select L.P. On April 30, 1998, the Partnership changed its name from Dean Witter Select Futures Fund L.P. to Dean Witter Spectrum Select L.P. The general partner is Demeter Management Corporation ("Demeter"). The non-clearing commodity broker is Dean Witter Reynolds, Inc. ("DWR"), with an unaffiliated clearing commodity broker, Carr Futures Inc. ("Carr"), providing clearing and execution services. Both Demeter and DWR are wholly-owned subsidiaries of Morgan Stanley Dean DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONTINUED) Witter & Co. ("MSDW"). Demeter has retained EMC Capital Management, Inc., Rabar Market Research, Inc. and Sunrise Capital Management, Inc. as the trading advisors for the Partnership. 2. Summary of Significant Accounting Policies Effective June 1, 1998, the incentive fees payable to each trading advisor was reduced to 15% of Trading profits, as defined in the Prospectus, and are now payable on a monthly basis. In addition, the Partnership's brokerage and transaction expenses, formerly accrued on a transaction basis is now charged at a flat monthly rate of 1/12 of 7.25% of Net Assets as of the first day of each month. Such fees cover all brokerage commissions, transaction fees and costs and ordinary administrative and continuing offering expenses. Effective with the April 30, 1998 monthly closing, each outstanding Unit of Select Futures Fund was converted into 100 Units of Spectrum Select. The purpose of this conversion was to value each Unit of the Partnership in a manner consistent with the value of Units in each of the other three Spectrum Partnerships for which Demeter also serves as the general partner. Thus, the $2,008.20 Net Asset Value per Unit of Select Futures Fund as of April 30, 1998 was converted to $20.08 per Unit. Per Unit amounts and Units of Partnership interest for periods prior to April 30, 1998 have been restated to reflect this conversion. DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONTINUED) 3. Related Party Transactions The Partnership's cash is on deposit with DWR and Carr in commodity trading accounts to meet margin requirements as needed. DWR pays interest on these funds based on prevailing U.S. Treasury bill rates. Brokerage expenses incurred by the Partnership are paid to DWR. 4. Financial Instruments The Partnership trades futures, options and forward contracts in interest rates, stock indices, commodities and currencies. Futures and forwards represent contracts for delayed delivery of 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. At June 30, 1998 and December 31, 1997, open contracts were: Contract or Notional Amount June 30, 1998 December 31, 1997 $ $ Exchange-Traded Contracts Financial Futures: Commitments to Purchase 622,099,000 428,493,000 Commitments to Sell 174,284,000 173,316,000 Commodity Futures: Commitments to Purchase 18,714,000 23,131,000 Commitments to Sell 56,704,000 135,389,000 Foreign Futures: Commitments to Purchase 943,281,000 997,389,000 Commitments to Sell 1,074,148,000 315,676,000 Off-Exchange-Traded Forward Currency Contracts Commitments to Purchase 82,376,000 96,671,000 Commitments to Sell 107,962,000 127,065,000 DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONTINUED) A portion of the amounts indicated as off-balance-sheet risk in forward currency contracts is due to offsetting forward commitments to purchase and to sell the same currency on the same date in the future. These commitments are economically offsetting, but are not offset in the forward market until the settlement date. The net unrealized gains on open contracts are reported as a component of "Equity in Commodity futures trading accounts" on the Statements of Financial Condition and totaled $5,659,096 and $9,627,161 at June 30, 1998 and December 31, 1997, respectively. Of the $5,659,096 net unrealized gain on open contracts at June 30, 1998, $5,191,343 related to exchange-traded futures contracts and $467,753 related to off-exchange-traded forward currency contracts. Of the $9,627,161 net unrealized gain on open contracts at December 31, 1997, $10,514,844 related to exchange-traded futures contracts and $(887,683) related to off-exchange-traded forward currency contracts. Exchange-traded futures contracts held by the Partnership at June 30, 1998 and December 31, 1997 mature through June 1999 and DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 1998, respectively. Off-exchange-traded forward currency contracts held at June 30, 1998 and December 31, 1997 mature through September 1998 and March 1998, respectively. The contract amounts in the above table represent the Partnership's extent of involvement in a particular class of financial instrument, but not the credit risk associated with counterparty non-performance. The credit risk associated with these instruments 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 the Partnership's exchange-traded futures and futures styled options contracts, is 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 contracts, which funds, in the aggregate, totaled DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONTINUED) $157,075,624 and $168,693,769 at June 30, 1998 and December 31, 1997, 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 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. 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). For the six months ended June 30, 1998 and the year ended December 31, 1997, the average fair value of financial instruments held for trading purposes was as follows: June 30, 1998 Assets Liabilities $ $ Exchange-Traded Contracts: Financial Futures 338,812,000 279,728,000 Options on Financial Futures 239,000 - Commodity Futures 26,071,000 84,548,000 Foreign Futures 851,731,000 552,216,000 Off-Exchange-Traded Forward Currency Contracts 130,014,000 152,391,000 DEAN WITTER SPECTRUM SELECT L.P. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) December 31,1997 Assets Liabilities $ $ Exchange-Traded Contracts: Financial Futures 363,272,000 243,761,000 Options on Financial Futures 3,781,000 - Commodity Futures 95,455,000 76,233,000 Options on Commodity Futures 2,484,000 1,789,000 Foreign Futures 360,391,000 382,135,000 Off-Exchange-Traded Forward Currency Contracts 41,814,000 40,388,000 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity - The Partnership's assets are deposited with DWR, as non-clearing broker and with Carr, as clearing broker in separate futures interest trading accounts, and are used by the Partnership as margin to engage in futures interest trading. Such assets are held in either non-interest bearing bank accounts or in securities approved by the CFTC for investment of customer funds. The Partnership's assets held by DWR and Carr may be used as margin solely for the Partnership's trading. Since the Partnership's sole purpose is to trade in futures interests, it is expected that the Partnership will continue to own such liquid assets for margin purposes. The Partnership's investment in futures interests may be illiquid. If the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the "daily limit," positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Partnership from promptly liquidating its commodity futures positions and result in restrictions on redemptions. There is no limitation on daily price moves in trading forward contracts on foreign currencies. 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. Capital Resources. The Partnership does not have, nor does it expect to have, any capital assets. Redemptions, exchanges and sales of additional Units of Limited Partnership Interest in the future will affect the amount of funds available for investment in futures interests in subsequent periods. Since they are at the discretion of Limited Partners, it is not possible to estimate the amount, and therefore, the impact of future redemptions, exchanges or sales of additional Units. Results of Operations For the Quarter and Six Months Ended June 30, 1998 For the quarter ended June 30, 1998, the Partnership recorded total trading loss net of interest income of $3,323,749 and posted a decrease in Net Asset Value per Unit. The most significant losses were recorded in the financial futures markets from long positions in Australian interest rate futures as prices in this market moved lower during April and June. Additional losses were recorded from trading U.S. interest rate futures during April as domestic bond prices moved in a choppy pattern. In agricultural futures, losses were experienced during June from short positions in soybean futures as prices moved higher. Losses were also recorded from trading soybean oil futures throughout the quarter. currencies, losses were experienced during April from short positions in the Swiss franc and German mark as the value of these currencies reversed higher relative to the U.S. dollar. These losses were partially offset by gains from short positions in the South African rand, Canadian dollar and Japanese yen as the value of these currencies weakened relative to the U.S. dollar and other currencies during May and June. Smaller losses were recorded from trading copper futures during April and May. A portion of the Partnership's overall losses for the quarter was offset by gains recorded in the energy markets in June from short positions in crude oil and unleaded gas futures as prices declined due to increased supply early in the month. Smaller gains were recorded in soft commodities during June from long positions in cotton futures and short positions in coffee futures. Total expenses for the three months ended June 30, 1998 were $3,763,386, resulting in a net loss of $7,087,135. The value of an individual Unit in the Partnership decreased from 21.53 at March 31, 1998 to $20.63 at June 30, 1998. For the six months ended June 30, 1998, the Partnership recorded total trading revenues including interest income of $6,196,647 and after expenses posted a decrease in Net Asset Value per Unit. The most significant net trading losses were recorded in metals primarily from trendless price movement in copper futures during a majority of the first half of the year. Additional losses were recorded in precious metals from choppy price movement in silver and gold futures during the first quarter. In currencies, losses were recorded from transactions involving the British pound as its value moved without consistent direction for the first six months of the year. Additional currency losses were recorded during April from short Swiss franc positions as its value moved higher versus the U.S. dollar after moving lower previously. A portion of these losses was offset by gains recorded during May and June from short positions in the South African rand and Canadian dollar as the value of these currencies weakened relative to the U.S. dollar. In agricultural futures, losses recorded during June from trading soybean and soybean oil futures more than offset gains recorded from short soybean meal futures positions during February and March. Smaller losses recorded in financial futures from long Australian bond futures positions during April and June offset gains recorded during January, February and March from long positions in European interest rate futures and global stock index futures as prices in these markets trended higher. A portion of the Partnership's overall losses for the first half of the year was offset by profits from short crude and heating oil futures positions as oil prices moved lower during January, February and June. Additional profits recorded from short sugar futures positions, as prices declined during January and February, contributed in offsetting a portion of the overall Partnership losses for the first half of the year. Total expenses for the six months ended June 30, 1998 were $7,844,496, resulting in a net loss of $1,647,849. The value of an individual Unit in the Partnership decreased from 20.85 at December 31, 1997 to $20.63 at June 30, 1998. For the Quarter and Six Months Ended June 30, 1997 For the quarter ended June 30, 1997, the Partnership recorded total trading losses net of interest income of $7,868,953 and posted a decrease in Net Asset Value per Unit. The most significant losses were recorded during April from short U.S. interest rate futures positions as U.S. bond prices moved higher after trending lower previously. Additional losses were recorded throughout the quarter from short-term price volatility in European and Japanese bond futures. A portion of these losses was offset by gains from long positions in Australian bond and global stock index futures as prices in these markets trended higher during May and June. Trendless price movement in oil and gas prices throughout the quarter resulted in losses within the energy markets. In metals, losses were recorded from long positions in most base metals futures as prices declined during April and June after trending higher during the first quarter. In currency trading, losses from trendless movement in the value of the British pound and Swiss franc relative to the U.S. dollar more than offset currency gains recorded during April and June from transactions involving the Japanese yen. Total expenses for the three months ended June 30, 1997 were $4,063,544 resulting in a net loss of $11,932,497. The value of an individual Unit in the Partnership decreased from $21.43 at March 31, 1997 to $20.05 at June 30, 1997. For the six months ended June 30, 1997, the Partnership recorded total trading revenues including interest income of $11,613,740 and posted an increase in Net Asset Value per Unit. The most significant gains were recorded in the currency markets during January and February as the value of the U.S. dollar strengthened relative to most major European currencies and the Japanese yen. Additional gains were recorded from long coffee futures positions as coffee prices trended higher from January through May. In the agricultural markets, profits were recorded from long soybean and corn futures positions as prices in these markets also trended higher during February and March. A portion of the Partnership's overall gains was offset by losses from trendless price movement in Japanese and European interest rate futures, as well as in energy futures, during the first half of the year. Smaller losses recorded in metals, due primarily to inconsistent price movement in aluminum futures, were partially offset by profits from short gold futures positions, as gold prices moved sharply lower during January and June. Total expenses for the six months ended June 30, 1997 were $8,343,117, resulting in net income of $3,270,623. The value of an individual Unit in the Partnership increased from $19.62 at December 31, 1996 to $20.05 at June 30, 1997. PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS Previously reported. See Form 10-Q for the quarter ended March 31, 1998. Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS The Partnership initially registered 60,000 Units (pre- conversion) of Limited Partnership Interest ("Units") pursuant to a Registration Statement on Form S-1, which became effective on May 17, 1991 (SEC File Number 33-39667), and 10,000 Units at a supplemental closing pursuant to a new Registration Statement on Form S-1, which became effective on August 23, 1991 (SEC File No. 33-42380). The offering commenced on May 17, 1991 and terminated as of August 31, 1991, with 60,853.334 Units sold. The aggregate price of the offering amount registered was $69,380,300, based upon the initial offering price of $1,000 per Unit and $938.03 per Unit at the supplemental closing (the initial closing and supplemental closing, hereinafter, the "Initial Offering"). The aggregate price of the Units sold during the Initial Offering was $60,268,482. The Partnership registered an additional 75,000 Units (pre- conversion) pursuant to a new Registration Statement on Form S-1, which became effective on August 31, 1993 (SEC File Number 33- 65072) (the "Second Offering"). The Second Offering commenced on August 31, 1993 and terminated as of September 30, 1993, with 74,408.337 Units sold. The aggregate price of the Second Offering amount registered was $102,744,000, based upon an offering price of $1,369.92. The aggregate price of the Units sold during the Second Offering was $116,617,866. The Partnership registered an additional 60,000 Units (pre- conversion) pursuant to another Registration Statement on Form S-1, which became effective on October 17, 1996 (SEC File Number 333-1918), (the "Third Offering"). The Third Offering commenced on October 17, 1996 and terminated as of March 3, 1997, with 10,878.000 Units sold. The aggregate price of the Third Offering amount registered was $98,247,000, based upon an offering price of $1,637.45. The aggregate price of the Units sold during the Third Offering was $22,308,326. The Partnership registered an additional 1,500,000 Units pursuant to another Registration Statement on Form S-1, which became effective on May 11, 1998 (SEC File Number 333-47829). Commencing with the April 30, 1998 monthly closing, each previously outstanding Unit was converted in to 100 Units. Thereafter, commencing with the May 31, 1998 monthly closing, Units are being sold at monthly closings (the "Continuing Offering") 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. As of June 30, 1998, 181,984.824 Units were sold during the Continuing Offering, leaving 1,318,015.176 Units unsold as of July 1, 1998. The aggregate price of the Units sold from May 31, 1998 through June 30, 1998 is $3,751,903. Since DWR has paid all expenses of the Initial Offering, Second Offering, Third Offering and Continuing Offerings, 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 6. Exhibits and Reports on Form 8-K Reports on Form 8-K - No such reports have been filed for the quarter ended June 30, 1998. 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. Dean Witter Spectrum Select L.P. (Registrant) By: Demeter Management Corporation (General Partner) August 12, 1998 By:/s/ Lewis A. Raibley, III Lewis A. Raibley, III 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. EX-27 2
5 The schedule contains summary financial information extracted from Dean Witter Spectrum Select L.P. and is qualified in its entirety by reference to such financial instruments. 6-MOS JUN-30-1998 JUN-30-1998 151,884,281 0 4,050,614 0 0 0 0 0 161,593,991 0 0 0 0 0 0 161,593,991 0 6,196,647 0 0 7,844,496 0 0 (1,647,849) 0 (1,647,849) 0 0 0 (1,647,849) 0 0 Receivables include interest receivable of $561,726 and subscriptions receivable of $3,488,888. In addition to cash and receivables, total assets include net unrealized gain on open contracts of $5,659,096. Liabilities include redemptions payable of $2,323,087, accrued brokerage commissions of $938,360 and accrued management fees of $388,287. Total revenue includes realized trading revenue of $6,761,724, net change in unrealized of $(3,968,065) and interest income of $3,402,988.
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