-----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, V92DOnwdhv2YFV8uaai9K60/ThUvUX4ljf54Md0EtXWYz7pGY2lBtjxcjXUPN//V UJ1fkNkW7pTF3X/N0Q9lCg== 0000873799-98-000008.txt : 19981001 0000873799-98-000008.hdr.sgml : 19981001 ACCESSION NUMBER: 0000873799-98-000008 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980930 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: 424B3 SEC ACT: SEC FILE NUMBER: 333-47829 FILM NUMBER: 98718525 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 424B3 1 Dean Witter Spectrum Series Monthly Report August 1998 Dear Limited Partner: The Net Asset Value per Unit for each of the four Dean Witter Spectrum Funds as of August 31, 1998 was as follows: Funds N.A.V. % Change for Month Spectrum Global Balanced $14.47 2.58% Spectrum Select $24.35 19.17% Spectrum Strategic $ 9.46 11.81% Spectrum Technical $15.65 10.34% In Spectrum Global Balanced, a balanced portfolio of stocks, bonds and managed futures, gains were recorded primarily from long positions in the global bond futures component, specifically long positions in U.S., European and Japanese bond futures, as prices in these markets soared higher as investors flocked to these "safe havens" in lieu of the political and economic upheaval in Russia. Additional gains were recorded in the managed futures component from short positions in agricultural futures, namely in corn and lean hog futures, as prices in these markets continued to trend lower amid large supplies and weaker exports. Profits were also recorded from short positions in crude oil futures as oil prices continued to move lower on decreasing demand due to the Russian crisis and anticipation that production by certain OPEC members will continue to increase. Smaller gains were recorded in the currency markets from short Australian dollar positions. These gains were partially offset by losses incurred from long S&P 500 Index futures positions as U.S. equity prices plunged on fears that the economic troubles plaguing Russia, Japan, and to a lesser extent Latin America, will have a negative effect on the U.S. economy. In Spectrum Select, a Fund managed by three trading advisors who employ long-term technical trend-following trading systems, gains were recorded primarily from long global interest rate futures positions. The most signficiant gains were recorded from long positions in German, French, U.S. and Japanese bond futures as investors flocked to these perceived "safe haven" investments amid recent global economic uncertainty. Additional gains were recorded from shor tpositions in global stock index futures, particularly German, Japanese and U.S. stock index futures, as equity prices around the world moved significantly lower during August. In the agricultural markets, gains were recorded from short positions in corn, soybean and soybean meal futures as grain prices continued to decline on reports of abundant supplies and decreasing demand. Gains were also recorded in the currency markets from short Canadian dollar positions as its value reached its lowest level ever versus the U.S. dollar. In the energy markets, gains were recorded from short positions in oil and gas futures as energy prices decreased throughout the month. Smaller gains were recorded in the metals markets from short gold futures positions as the price of gold reached a 19-year low. A portion of the Fund's gains for the month was offset by losses recorded in soft commodities from long positions in coffee futures as coffee prices fell on increased supply and shrinking demand. In Spectrum Strategic, a Fund managed by three trading advisors who employ fundamental trading methodologies, gains were recorded primarily from long global interest rate futures positions. The most significant gains were recorded from long positions in European bond futures as investors flocked to these perceived "safe haven" investments amid the recent political and economic turmoil in Russia, Asia and Latin America. Smaller gains were recorded from short positions in U.S. stock index futures as domestic equity prices declined sharply during August due to global economic uncertainty. A portion of the Fund's overall gains for the month was offset by losses recorded in the currency markets from short Japanese yen positions as the value of the yen increased versus the U.S. dollar and German mark late in the month. Smaller currency losses were recorded from long German mark and British pound positions as the value of these currencies declined relative to the U.S. dollar early in the month. In the enrgy markets, losses were experienced from long positions in crude and heating oil futures as oil prices declined amid speculation that OPEC's November meeting will not yield a production cut. Smaller losses were recorded in the metals markets from long silver futures positions as silver prices finished the month lower. In Spectrum Technical, a Fund managed by three trading advisors who employ long-term technical trend-following trading systems, gains were recorded primarily from long global interest rate future positions. The most significant gains were recorded from long positions in German, U.S., and Japanese bond futures as investors flocked to these perceived "safe haven" investments amid the recent political and economic turmoil in Russia, Asia and Latin America. In the agricultural markets, gains were recorded from short positions as prices in these markets continued to decline on reports of abundant supplies and decreasing demand. Additional gains were recorded in the energy markets from short positions in crude oil futures as oil prices declined on speculation that OPEC's November meeting will not yield any production cuts. Gains were also recorded in the metals markets from short gold and silver futures positions as precious metals prices moved lower during August. Smaller gains were recorded in soft commodities from short sugar futures positions as sugar prices decreased as demand lessened and supplies grew due to economic turmoil in emerging markets worldwide. A portion of the Fund's overall gains for the month were offset by losses experienced in the currency markets from short Japanese yen and British pound positions as the value of these currencies moved significantly higher relative to the U.S. dollar late in the month. Should you have any questions concerning this report, please feel free to contact Demeter Management Corporation at Two World Trade Center, 62nd Floor New York , NY 10048, or your Dean Witter Financial Advisor. I hereby affirm, that to the best of my knowledge and belief, the information contained in this report is accurate and complete. Past performance is not a guarantee of future results. Sincerely, Mark J. Hawley President Demeter Management Corporation General Partner Historical Fund Performance Presented below is the percentage change in Net Asset Value per Unit from the start of each calendar year the Fund has traded. Also provided is the inception-to-date return and the annualized return since inception for the Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Funds Year Return Spectrum Global Balanced 1994 (2 months) -1.7% 1995 22.8% 1996 -3.7% 1997 18.2% 1998 (8 months) 5.2% Inception-to-Date Return: 44.7% Annualized Return: 10.1% ___________________________________________________________________________ __________ Spectrum Select 1991 (5 months) 31.2% 1992 -14.4% 1993 41.6% 1994 -5.1% 1995 23.6% 1996 5.3% 1997 6.2% 1998 (8 months) 16.8% Inception-to-Date Return 143.5% Annualized Return 13.4% ___________________________________________________________________________ __________ Spectrum Strategic 1994 (2 months) 0.1% 1995 10.5% 1996 -3.5% 1997 0.4% 1998 (8 months) -11.7% Inception-to-Date Return: -5.4% Annualized Return: -1.4% ___________________________________________________________________________ __________ Spectrum Technical 1994 (2 months) -2.2% 1995 17.6% 1996 18.4% 1997 7.5% 1998 (8 months) -7.0% Inception-to-Date Return: 56.5% Annualized Return: 12.4% ___________________________________________________________________________ __________
Dean Witter Spectrum Series Statements of Operations For the Month Ended August 31, 1998 (Unaudited)
Dean Witter Spectrum Global Balanced Dean Witter Spectrum Select Percent of Percent of August 31, 1998 August 31, 1998 Beginning Beginning Amount Net Asset Value Amount Net Asset Value $ % $ % REVENUES Trading Profit Realized 1,226,295 3.45 8,585,115 5.41 Net change in unrealized (284,393) (.80) 23,131,362 14.59 Total Trading Results 941,902 2.65 31,716,477 20.00 Interest Income (DWR) 149,820 .42 560,308 .35 Total Revenues 1,091,722 3.07 32,276,785 20.35 EXPENSES Brokerage fees (DWR) 136,417 .38 954,154 .60 Management fees (DWFCM) 37,070 .11 396,493 .25 Incentive fees - - 520,077 .33 Total Expenses 173,487 .49 1,870,724 1.18 NET INCOME 918,235 2.58 30,406,061 19.17 Dean Witter Spectrum Series Statements of Changes in Net Asset Value For the Month Ended August 31, 1998 (Unaudited) Dean Witter Spectrum Global Balanced Dean Witter Spectrum Select . Units Amount Per Unit Units Amount Per Unit $ $ $ $ Net Asset Value, August 1, 1998 2,522,435.692 35,587,528 14.11 7,761,853.794 158,597,376 20.43 Net Income - 918,235 .36 - 30,406,061 3.92 Redemptions (27,420.496) (396,775) 14.47 (72,521.100) (1,765,670) 24.35 Subscriptions 106,891.539 1,546,720 14.47 140,194.421 3,413,734 24.35 Net Asset Value, August 31, 1998 2,601,906.735 37,655,708 14.47 7,829,527.115 190,651,501 24.35 The accompanying notes are an integral part of these financial statements.
Dean Witter Spectrum Series Statements of Operations For the Month Ended August 31, 1998 (Unaudited)
Dean Witter Spectrum Strategic Dean Witter Spectrum Technical. Percent of Percent of August 31, 1998 August 31, 1998 Beginning Beginning Amount Net Asset Value Amount Net Asset Value $ % $ % REVENUES Trading Profit Realized 1,792,500 3.57 3,451,790 1.65 Net change in unrealized 4,435,327 8.83 20,995,608 10.07 Total Trading Results 6,227,827 12.40 24,447,398 11.72 Interest Income (DWR) 169,031 .34 731,589 .35 Total Revenues 6,396,858 12.74 25,178,987 12.07 EXPENSES Brokerage fees (DWR) 303,386 .60 1,260,375 .61 Management fees 162,865 .33 695,379 .33 Incentive fees - . - . 1,645,007 .79 Total Expenses 466,251 .93 3,600,761 1.73 NET INCOME 5,930,607 11.81 21,578,226 10.34 Dean Witter Spectrum Series Statements of Changes in Net Asset Value For the Month Ended August 31, 1998 (Unaudited) Dean Witter Spectrum Strategic Dean Witter Spectrum Technical Units Amount Per Unit Units Amount Per Unit $ $ $ $ Net Asset Value, August 1, 1998 5,932,222.591 50,215,608 8.46 14,705,677.119 208,613,659 14.19 Net Loss - 5,930,607 1.00 - 21,578,226 1.46 Redemptions (164,807.347) (1,559,077) 9.46 (163,030.606) (2,551,429) 15.65 Subscriptions 82,722.543 782,555 9.46 334,300.500 5,231,803 15.65 Net Asset Value, August 31, 1998 5,850,137.787 55,369,693 9.46 14,876,947.013 232,872,259 15.65 The accompanying notes are an integral part of these financial statements.
Dean Witter Spectrum Series Notes to Financial Statements (Unaudited) 1. Summary of Significant Accounting Policies Organization , Dean Witter Spectrum Global Balanced L.P. (formally known as Dean Witter Spectrum Balanced L.P.)("Spectrum Balanced"), Dean Witter Spectrum Select L.P. (formally known as Dean Witter Select Futures Fund L.P.) ("Spectrum Select"), Dean Witter Spectrum Strategic L.P. ("Spectrum Strategic") and Dean Witter Spectrum Technical L.P. ("Spectrum Technical") (individually, a "Partnership", or collectively, the "Partnerships") are limited partnerships organized to engage in the speculative trading of futures and forward contracts, options on futures contracts and on physical commodities, and other commodities interests, including foreign currencies, financial instruments, precious and industrial metals, energy products, and agriculturals. The general partner for each Partnership is Demeter Management Corporation ("Demeter"). The non-clearing commodity broker is Dean Witter Reynolds, Inc. ("DWR"), with an unaffiliated clearing commodity broker Carr Futures Inc. ("Carr"), providing clearing and execution services. Both Demeter and DWR are wholly-owned subsidiaries of Morgan Stanley Dean Witter & Co. ("MSDW"). Demeter is required to maintain a 1% minimum interest in the equity of each Partnership and income (losses) are shared by the General and Limited Partners based upon their proportional ownership interests. Basis of Accounting , The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Revenue Recognition - Commodity futures contracts and forward contracts on foreign currencies are open commitments until settlement date. They are valued at market and the resulting unrealized gains and losses are reflected in income. Monthly, DWR pays each Partnership interest income based upon 80% of its average daily "Net Assets" (as defined in the limited partnership agreements), for the month in the case of Spectrum Select, Spectrum Strategic and Spectrum Technical and 100% in the case of Spectrum Balanced. The interest rate is equal to a prevailing rate on U.S. Treasury Bills. For purposes of such interest payments, Net Assets do not include monies due to the Partnership on forward contracts and other commodity interests, but not actually received. Net Income (Loss) per Unit - Net income (loss) per Unit is computed using the weighted average number of units outstanding during the period. Brokerage Fees and Related Transaction Fees and Costs , Brokerage fees for Spectrum Balanced are accrued at a monthly rate of 1/12 of 4.60% of the Net Assets as of the first day of each month. Brokerage fees for Spectrum Select, Spectrum Strategic and Spectrum Technical are accrued at a monthly rate of 1/12 of 7.25% of the Net Assets as of the first day of each month. Dean Witter Spectrum Series Notes to Financial Statements - (Continued) Such fees will cover all brokerage fees, transaction fees and costs and ordinary administrative and continuing offering expenses. Operating Expenses - Spectrum Balanced, Spectrum Strategic and Spectrum Technical, incur monthly management fees and may incur incentive fees. All common administrative and continuing offering expenses including legal, auditing accounting, filing fees and other related expenses are borne by DWR through the brokerage fees paid by each Partnership. Spectrum Select bears all operating expenses related to its trading activities, to a maximum of one fourth of 1% annually of the Partnership's average month end Net Assets. In addition, the Partnership incurs a monthly management fee and may incur an incentive fee. Demeter bears all other operating expenses. Effective with the June 1, 1998 change to a flat rate brokerage fee, all common administrative and continuing offering expenses will be borne by DWR through the brokerage fees. Income Taxes - No provision for income taxes has been made in the accompanying financial statements, as partners are individually responsible for reporting income or loss based upon their respective share of each Partnership's revenues and expenses for income tax purposes. Distributions - Distributions, other than on redemption of Units, are made on a pro-rata basis at the sole discretion of Demeter. No distributions have been made to date. Continuing Offering - Units of each Partnership are offered at a price equal to 100% of the Net Asset Value per Unit as of the opening of business on the first day of the month. No selling commissions or charges related to the continuing offering of Units will be paid by the Limited Partners or the Partnership. DWR will pay all such costs. Redemptions , Limited Partners may redeem some or all of their Units at 100% of the Net Asset Value Per Unit as of the end of the last day that is six months after the closing at which a person becomes a Limited Partner, upon five business days advance notice by redemption form to Demeter. Thereafter, Units redeemed on or prior to the last day of the twelfth month after such Units were purchased will be subject to a redemption charge equal to 2% of the Net Asset Value of a Unit on the date of such redemption. Units redeemed after the last day of the twelfth month and on or prior to the last day of the twenty- fourth month after which such units were purchased will be subject to a redemption charge equal to 1% of the Net Asset Value of a Unit on the date of such redemption. Units redeemed after the last day of the twenty-fourth month after which such Units were purchased will not be subject to a redemption charge. The foregoing redemptions charges will be paid to DWR. Redemptions must be made in whole Units, in a minimum amount of 50 Units, unless a Limited Partner is redeeming his entire interest in a Partnership. Dean Witter Spectrum Series Notes to Financial Statements (Continued) Exchanges - On the last day of the first month, which occurs more than six months after a person first becomes a Limited Partner in any of the Partnerships, and the end of each month thereafter, Limited Partners may exchange their investment among the Partnerships (subject to certain restrictions outlined in the Limited Partnership Agreement) without paying additional charges. Dissolution of the Partnership - Spectrum Balanced, Spectrum Strategic and Spectrum Technical will terminate on December 31, 2035 and Spectrum Select will terminate on December 31, 2025 regardless of their financial condition at such time, or at an earlier date if certain conditions occur as defined in each Partnership's Limited Partnership Agreement. 2. Related Party Transactions Each Partnership pays brokerage fees to DWR as described in Note 1. Each Partnership's cash is on deposit with DWR and Carr in commodity trading accounts to meet margin requirements as needed. DWR pays interest on these funds as described in Note 1. Each Partnership is authorized to issue and sell Units at Monthly Closings at a price per Unit equal to 100% of the Net Asset Value of a Unit of such Partnership as of the close of business on the date of such monthly closing. 3. Trading Advisors Demeter, on behalf of each Partnership, retains certain commodity trading advisors to make all trading decisions for the Partnerships. The trading advisors for each Partnership are as follows: Dean Witter Spectrum Global Balanced L.P. RXR, Inc. Dean Witter Spectrum Select L.P. EMC Capital Management, Inc. Rabar Market Research, Inc. Sunrise Capital Management, Inc. Dean Witter Spectrum Strategic L.P. Blenheim Investments, Inc. Stonebrook Capital Management, Inc. Willowbridge Associates Inc. Dean Witter Spectrum TEchnical L.P. Campbell & Company, Inc. Chesapeake Capital Corporation John W. Henry & Company, Inc. ("JWH") Dean Witter Spectrum Series Notes to Financial Statements (Continued) Compensation to the trading advisors by the Partnerships consists of a management fee and an incentive fee as follows: Management Fee - The management fee is accrued at the rate of 5/48 of 1% of the Net Assets on the first day of each month (a 1.25% annual rate) to Spectrum Balanced. The management fee is accrued at the rate of 1/3 of 1% per month of the Net Assets allocated to each trading advisor on the first day of each month (a 4% annual rate) to Spectrum Technical. Prior the June 1, 1998, the management fee was accrued at the rate of one fourth of 1% of the Partnership's adjusted Net Assets, as defined in the Limited Partnership Agreement, as of the last day of each month (a 3% annual rate) to Spectrum Select. Effective June 1, 1998, the management fee is accrued at the rate of one fourth of 1% per month of the Net Assets allocated to each trading advisor on the first day of each month (a 3% annual rate). Prior to June 1, 1998, the management fee was accrued at the rate of 1/3 of 1% per month of the Net Assets allocated to each trading advisor on the first day of each month (a 4% annual rate) to Spectrum Strategic. Effective June 1, 1998, management fees are accrued at a rate of 1/12 of 4% of the Net Assets allocated to each of Blenheim and Willowbridge on the first day of each month, and 1/12 of 3% of the Net Assets allocated to Stonebrook on the first day of each month. Incentive Fee , Spectrum Balanced and Spectrum Strategic each will pay a monthly incentive fee equal to 15% of the "Trading Profits" as defined in the Limited Partnership Agreement, experienced with respect to each trading manager's allocated Net Assets as of the end of each calendar month. Prior to June 1, 1998, Spectrum Select paid, when applicable, a quarterly incentive fee to each trading advisor equal to 17.5% of the trading advisors "Trading Profits" experienced by the Net Assets allocated to such trading advisor as of the end of each calendar quarter. Effective June 1, 1998 the incentive fees will be revised to 15% of "Trading Profits" and will be paid on a monthly basis. Prior to June 1, 1998, Spectrum Technical paid a fee equal to 15% of the "Trading Profits" as defined in the Limited Partnership agreement, experienced with respect to each trading manager's allocated Net Assets as of the end of each calendar month. Effective June 1, 1998 incentive fees to Spectrum Technical were revised to 15% of the "Trading Profits" experienced with respect to the Net Assets allocated to Campbell and JWH as of the end of each calendar month, and 19% of the "Trading Profits" experienced with respect to the Net Assets allocated to Chesapeake as of the end of each calendar month. Dean Witter Spectrum Series Notes to Financial Statements (Concluded) For all Partnerships, if a trading advisor has experienced "Trading losses" with respect to its allocated Net Assets at the time of a supplemental closing the trading advisor must earn back such losses plus a pro-rata amount related to the funds allocated to the trading advisor at supplemental closing before the trading advisor is eligible for an incentive fee. -----END PRIVACY-ENHANCED MESSAGE-----