0000925306-01-500005.txt : 20011030 0000925306-01-500005.hdr.sgml : 20011030 ACCESSION NUMBER: 0000925306-01-500005 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20011026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY 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: 1933 Act SEC FILE NUMBER: 333-01918 FILM NUMBER: 1767651 BUSINESS ADDRESS: STREET 1: 1221 AVE. OF THE AMERICAS, 23RD FL. CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 2123928899 FORMER COMPANY: FORMER CONFORMED NAME: DEAN WITTER SPECTRUM SELECT LP DATE OF NAME CHANGE: 19980507 FORMER COMPANY: FORMER CONFORMED NAME: WITTER DEAN SELECT FUTURES FUND LP DATE OF NAME CHANGE: 19930328 424B3 1 c22049.txt SPECTRUM SELECT ------------------- Presorted First Class Mail U.S. Postage PAID Permit #664 S. Hackensack, N.J. ------------------- [MORGAN STANLEY LOGO] c/o Morgan Stanley Trust Company, Attention:Managed Futures, 7th Floor, Harborside Financial Center Plaza Two Jersey City, NJ 07311-3977 ADDRESS SERVICE REQUESTED [RECYCLE LOGO] printed on recycled paper ---------------------------------- Morgan Stanley Dean Witter Spectrum Series ---------------------------------- [GRAPHIC OMITTED] September 2001 Monthly Report This Monthly Report supplements the Spectrum Funds' Prospectus dated March 23, 2001. [MORGAN STANLEY LOGO] October 31, 2001 MORGAN STANLEY DEAN WITTER SPECTRUM SERIES HISTORICAL FUND PERFORMANCE Presented below is the percentage change in Net Asset Value per Unit from the start of every calendar year each 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. FUNDS ----- SPECTRUM COMMODITY YEAR RETURN ---- ------ 1998 -34.3% 1999 15.8% 2000 3.2% 2001 (9 months) -24.8% Inception-to-Date Return: -41.0% Annualized Return: -13.1% -------------------------------------------------------------------------------- SPECTRUM CURRENCY YEAR RETURN ---- ------ 2000 (6 months) 11.7% 2001 (9 months) 0.1% Inception-to-Date Return: 11.8% Annualized Return: 9.3% -------------------------------------------------------------------------------- SPECTRUM GLOBAL BALANCED YEAR RETURN YEAR RETURN ---- ------ ---- ------ 1994 (2 months) -1.7% 1998 16.4% 1995 22.8% 1999 0.7% 1996 -3.6% 2000 0.9% 1997 18.2% 2001 (9 months) -3.8% Inception-to-Date Return: 56.4% Annualized Return: 6.7% -------------------------------------------------------------------------------- SPECTRUM SELECT YEAR RETURN YEAR RETURN ---- ------ ---- ------ 1991 (5 months) 31.2% 1996 5.3% 1992 -14.4% 1997 6.2% 1993 41.6% 1998 14.2% 1994 -5.1% 1999 -7.6% 1995 23.6% 2000 7.1% 2001 (9 months) 10.1% Inception-to-Date Return: 159.5% Annualized Return: 9.8% -------------------------------------------------------------------------------- SPECTRUM STRATEGIC YEAR RETURN YEAR RETURN ---- ------ ---- ------ 1994 (2 months) 0.1% 1998 7.8% 1995 10.5% 1999 37.2% 1996 -3.5% 2000 -33.1% 1997 0.4% 2001 (9 months) -2.8% Inception-to-Date Return: 3.1% Annualized Return: 0.4% -------------------------------------------------------------------------------- SPECTRUM TECHNICAL YEAR RETURN YEAR RETURN ---- ------ ---- ------ 1994 (2 months) -2.2% 1998 10.2% 1995 17.6% 1999 -7.5% 1996 18.3% 2000 7.8% 1997 7.5% 2001 (9 months) 1.9% Inception-to-Date Return: 63.8% Annualized Return: 7.4% DEMETER MANAGEMENT CORPORATION c/o Morgan Stanley Trust Company, Attention: Managed Futures, 7th Floor, Harborside Financial Center Plaza Two, Jersey City, NJ 07311-3977 Telephone (201) 876-4647 MORGAN STANLEY DEAN WITTER SPECTRUM SERIES MONTHLY REPORT SEPTEMBER 2001 Dear Limited Partner: The Net Asset Value per Unit for each of the six Morgan Stanley Dean Witter Spectrum Funds as of September 30, 2001 was as follows: FUNDS N.A.V. % CHANGE FOR MONTH ----- ------ ------------------ Spectrum Commodity $ 5.90 -5.17% Spectrum Currency $11.18 0.97% Spectrum Global Balanced $15.64 -1.22% Spectrum Select $25.95 6.69% Spectrum Strategic $10.31 3.81% Spectrum Technical $16.38 8.24% SPECTRUM COMMODITY Spectrum Commodity, a long-only commodity fund, decreased in value during September primarily due to losses recorded in the energy markets from long natural gas futures positions as prices fell as a result of expectations for a rise in supplies. In the agricultural markets, losses were experienced from long positions in corn and wheat futures as prices moved lower. In the metals markets, losses were incurred from long positions in copper and aluminum futures as prices declined earlier in the month due to higher inventories and weak demand. A portion of the Fund's overall losses was offset by gains recorded in the soft commodities markets from long cocoa futures positions as prices moved higher on expectations that global demand will outpace production. SPECTRUM CURRENCY Spectrum Currency increased in value during September primarily due to gains recorded from previously established short positions in the South African rand as its value trended lower relative to the U.S. dollar as investors targeted the emerging market currency while global economic jitters persisted. A portion of the Fund's overall gains was offset by losses recorded from previously established long positions in the euro and Japanese yen as their values reversed lower and the U.S. dollar strengthened amid newly released optimistic economic data and the Bank of Japan's surprise interventions, which boosted the U.S. dollar. SPECTRUM GLOBAL BALANCED Spectrum Global Balanced decreased in value during September primarily due to losses recorded in the global stock index futures markets from long positions in DAX, FTSE and S&P 500 Index futures as equity prices continued their decline amid worries regarding global economic uncertainty. In the energy markets, losses were incurred from previously established long futures positions in crude oil and its refined products as the trend in oil prices reversed sharply lower due to newly heightened concerns over the effects of a global economic slowdown on oil demand. A portion of the Fund's overall losses was offset by gains recorded in the global interest rate futures markets from previously established long positions in short-term U.S. and European interest rate futures as prices continued trending higher following an interest rate cut by the U.S. Federal Reserve and as investors sought a safe-haven from declining stock prices. SPECTRUM SELECT Spectrum Select increased in value during September primarily due to gains recorded in the global stock index futures markets from previously established short positions in DAX, Nikkei and S&P 500 Index futures as the trend in equity prices continued sharply lower amid worries regarding global economic uncertainty. In the global interest rate futures markets, profits were recorded from previously established long positions in short-term U.S. and European interest rate futures as prices continued trending higher following an interest rate cut by the U.S. Federal Reserve and as investors sought a safe-haven from declining stock prices. A portion of the Fund's overall gains was offset by losses recorded later in the month in the currency markets from previously established long positions in the Japanese yen as its value suddenly reversed lower relative to the U.S. dollar following surprise interventions by the Bank of Japan. In the energy markets, losses were experienced from previously established long futures positions in crude oil and its refined products as the trend in oil prices reversed lower due to near-term concerns over the effects of a global economic slowdown on oil demand. SPECTRUM STRATEGIC Spectrum Strategic increased in value during September primarily due to gains recorded in the global interest rate futures markets from long positions in short-term U.S. and European interest rate futures as prices rose following an interest rate cut by the U.S. Federal Reserve and as investors sought a safe-haven from declining stock prices. In the soft commodities markets, profits were recorded from long cocoa futures positions as prices moved higher on expectations that global demand will outpace production. In the energy markets, gains were recorded from short positions in crude oil futures as oil prices reversed lower due to near-term concerns over the effects of a global economic slowdown on oil demand. A portion of the Fund's overall gains was offset by losses recorded later in the month in the currency markets from long positions in the Japanese yen as its value weakened relative to the U.S. dollar following interventions by the Bank of Japan. SPECTRUM TECHNICAL Spectrum Technical increased in value during September primarily due to gains recorded in the global interest rate futures markets from previously established long positions in short-term U.S. and European interest rate futures as prices continued trending higher following an interest rate cut by the U.S. Federal Reserve and as investors sought a safe-haven from declining stock prices. In the global stock index futures markets, gains were recorded from previously established short positions in DAX Index futures as the trend in equity prices continued sharply lower amid worries regarding global economic uncertainty. In the metals markets, profits were recorded from previously established long positions in gold futures as prices continued moving higher, boosted by falling equity prices and uncertainty linked to possible U.S. military action. In the currency markets, gains were recorded from previously established long positions in the Swiss franc as its value continued its strengthening trend relative to the U.S. dollar due to the sharp decline in stock prices and as investors sought refuge in this safe haven currency amid fears of global economic and political turmoil. A portion of the Fund's overall gains was offset by losses recorded in the energy markets from previously established long futures positions in crude oil and its refined products as the trend in oil prices reversed lower due to near-term concerns over the effects of a global economic slowdown on oil demand. Should you have any questions concerning this report, please feel free to contact Demeter Management Corporation, c/o Morgan Stanley Trust Company, Attention: Managed Futures, 7th Floor, Harborside Financial Center Plaza Two, Jersey City, NJ 07311-3977 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, /s/ Robert E. Murray Robert E. Murray Chairman Demeter Management Corporation General Partner MORGAN STANLEY DEAN WITTER SPECTRUM SERIES STATEMENTS OF OPERATIONS FOR THE MONTH ENDED SEPTEMBER 30, 2001 (UNAUDITED)
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 SEPTEMBER 1, 2001 SEPTEMBER 1, 2001 SEPTEMBER 1, 2001 BEGINNING BEGINNING BEGINNING AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE -------------------------- -------- ------------------ -------------------------- $ % $ % $ % REVENUES Trading profit (loss): Realized (613,579) (4.28) (677,093) (1.99) (2,721,641) (4.82) Net change in unrealized (72,416) (.50) 1,126,734 3.30 2,161,962 3.83 -------- ----- ------- --- -------- ----- Total Trading Results (685,995) (4.78) 449,641 1.31 (559,679) (.99) Interest income (Note 2) 30,051 .21 66,914 .20 145,303 .26 -------- ----- ------- --- -------- ----- Total Revenues (655,944) (4.57) 516,555 1.51 (414,376) (.73) -------- ----- ------- --- -------- ----- EXPENSES Brokerage fees (Note 2) 54,969 .38 130,695 .38 216,455 .38 Management fees (Notes 2 & 3) 29,874 .22 56,824 .16 58,820 .11 -------- ----- ------- --- -------- ----- Total Expenses 84,843 .60 187,519 .54 275,275 .49 -------- ----- ------- --- -------- ----- NET INCOME (LOSS) (740,787) (5.17) 329,036 .97 (689,651) (1.22) ======== ===== ======= === ======== =====
MORGAN STANLEY DEAN WITTER SPECTRUM SERIES STATEMENTS OF CHANGES IN NET ASSET VALUE FOR THE MONTH ENDED SEPTEMBER 30, 2001 (UNAUDITED)
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 ----- ------ -------- ----- --- --- -------- ----- ------ -------- $ $ $ $ $ $ Net Asset Value, September 1, 2001 2,306,298.372 14,339,685 6.22 3,077,880.983 34,094,303 11.08 3,566,482.976 56,466,948 15.83 Net Income (Loss) -- (740,787) (.32) -- 329,036 .10 -- (689,651) (.19) Redemptions (36,634.057) (216,141) 5.90 (8,844.111) (98,877) 11.18 (27,245.536) (426,120) 15.64 Subscriptions 33,670.000 198,653 5.90 167,157.517 1,868,821 11.18 36,780.674 575,250 15.64 ------------- ---------- ------------- ---- ------ ------------- ---------- Net Asset Value, September 30, 2001 2,303,334.315 13,581,410 5.90 3,236,194.389 36,193,283 11.18 3,576,018.114 55,926,427 15.64 ============= ========== ============= ========== ============= ==========
The accompanying notes are an integral part of these financial statements. MORGAN STANLEY DEAN WITTER SPECTRUM SERIES STATEMENTS OF OPERATIONS FOR THE MONTH ENDED SEPTEMBER 30, 2001 (UNAUDITED)
MORGAN STANLEY DEAN WITTER MORGAN STANLEY DEAN WITTER MORGAN STANLEY DEAN WITTER SPECTRUM SELECT SPECTRUM STRATEGIC SPECTRUM TECHNICAL -------------------------- -------- ------------------ -------------------------- PERCENTAGE OF PERCENTAGE OF PERCENTAGE OF SEPTEMBER 1, 2001 SEPTEMBER 1, 2001 SEPTEMBER 1, 2001 BEGINNING BEGINNING BEGINNING AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE -------------------------- -------- ------------------ -------------------------- $ % $ % $ % REVENUES Trading profit (loss): Realized 8,913,773 3.77 1,406,223 2.07 19,011,111 7.41 Net change in unrealized 9,144,225 3.86 1,617,950 2.38 3,697,537 1.44 ---------- ---- -------- - ---- ---------- ---- Total Trading Results 18,057,998 7.63 3,024,173 4.45 22,708,648 8.85 Interest income (Note 2) 518,978 .22 145,651 .21 569,492 .22 ---------- ---- -------- - ---- ---------- ---- Total Revenues 18,576,976 7.85 3,169,824 4.66 23,278,140 9.07 ---------- ---- -------- - ---- ---------- ---- EXPENSES Brokerage fees (Note 2) 1,429,151 .60 410,271 .60 1,550,127 .60 Incentive fees (Note 3) 729,435 .31 - - -- -- -- Management fees (Notes 2 & 3) 591,373 .25 169,767 .25 588,386 .23 ---------- ---- -------- - ---- ---------- ---- Total Expenses 2,749,959 1.16 580,038 .85 2,138,513 .83 ---------- ---- -------- - ---- ---------- ---- NET INCOME 15,827,017 6.69 2,589,786 3.81 21,139,627 8.24 ========== ==== ========= ==== ========== ====
MORGAN STANLEY DEAN WITTER SPECTRUM SERIES STATEMENTS OF CHANGES IN NET ASSET VALUE FOR THE MONTH ENDED SEPTEMBER 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 ----- ------ -------- ----- ---- -- -------- ----- ------ -------- $ $ $ $ $ $ Net Asset Value, September 1, 2001 9,726,859.893 236,549,018 24.32 6,835,722.876 67,906,985 9.93 16,950,840.140 256,572,782 15.14 Net Income -- 15,827,017 1.63 -- 2,589,786 .38 -- 21,139,627 1.24 Redemptions (65,699.853) (1,704,911) 25.95 (93,811.434) (967,196) 10.31 (156,650.744) (2,565,939) 16.38 Subscriptions 93,466.610 2,425,459 25.95 31,601.649 325,813 10.31 151,294.821 2,478,209 16.38 ------------- ----------- ------------- ----- ----- -------------- ----------- Net Asset Value, September 30, 2001 9,754,626.650 253,096,583 25.95 6,773,513.091 69,855,388 10.31 16,945,484.217 277,624,679 16.38 ============= =========== ============= ========== ============== ===========
The accompanying notes are an integral part of these financial statements. 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"). The clearing commodity brokers for the Partnerships are Morgan Stanley & Co. Incorporated ("MS & Co.") and Morgan Stanley & Co. International Limited ("MSIL"). Morgan Stanley Dean Witter Commodities Management, Inc. ("MSCM") is the trading advisor to Spectrum Commodity. Demeter, Morgan Stanley DW, MS & Co., MSIL and MSCM are wholly-owned subsidiaries of Morgan Stanley Dean Witter & Co. 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. MORGAN STANLEY DEAN WITTER SPECTRUM SERIES NOTES TO FINANCIAL STATEMENTS--(CONTINUED) REVENUE RECOGNITION--Futures interests are open com-mitments 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 change 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 agreements) for the month in the case of Spectrum Commodity, Spectrum Currency, Spectrum Select, Spectrum Strategic and Spectrum Technical, and on 100% in the case of Spectrum Global Balanced. The inter- est 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 commis-sions, 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 part- ners are individually responsible for reporting income or MORGAN STANLEY DEAN WITTER SPECTRUM SERIES NOTES TO FINANCIAL STATEMENTS--(CONTINUED) 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, 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 redemption charges will be 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 Agreement) without paying additional charges. DISSOLUTION OF THE PARTNERSHIPS--Spectrum Commodity will terminate on December 31, 2027. Spectrum Currency, Spectrum Global Balanced, Spectrum Strategic and Spectrum Technical will terminate on December 31, 2035 MORGAN STANLEY DEAN WITTER SPECTRUM SERIES NOTES TO FINANCIAL STATEMENTS--(CONTINUED) 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 as described in Note 1. Spectrum Commodity pays manage-ment 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 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. Morgan Stanley Dean Witter Spectrum Strategic L.P. Allied Irish Capital Management, Ltd. Blenheim Capital Management, L.L.C. (formerly known as Blenheim Investments, Inc.) Eclipse Capital Management Inc. Morgan Stanley Dean Witter Spectrum Technical L.P. Campbell & Company, Inc. ("Campbell") Chesapeake Capital Corporation ("Chesapeake") John W. Henry & Company, Inc. MORGAN STANLEY 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 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. 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. MORGAN STANLEY DEAN WITTER SPECTRUM SERIES NOTES TO FINANCIAL STATEMENTS--(CONCLUDED) 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 cal-endar month. Trading profits for the Partnerships represent the amount by which profits from futures, forwards and options trad- ing 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 recovered. Cumulative trading losses are adjusted on a pro-rata basis for the net amount of each month's subscriptions and redemptions.