Form 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended June 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from ________________ to _________________
Commission file number 0-28710
(Exact name of small business issuer as
specified in its charter)
Performance Asset Management Fund IV, Ltd., A California Limited Partnership
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
California 33-0548134
(Address of principal executive offices)
4100 Newport Place, Suite 400, Newport Beach, California
(Issuer's telephone number)
(714) 261-2400
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such report(s), and (2)
has been subject to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes No .
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: N/A
Transitional Small Business Disclosure Format (check one):
Yes___ No _X_
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
INDEX TO FORM 10-QSB
PART I
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Plan of Operation
PART II
Item 1. Legal Proceedings
Item 2. Exhibits and Reports
Signatures
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
PART I
ITEM 1. FINANCIAL STATEMENTS
Index to the Financial Statements for the Partnership:
Balance Sheets as of June 30, 1998 and December 31, 1997..................4
Statements of Operations for the Three and Six months Ended
June 30, 1998 and June 30, 1997.....................................5
Statements of Partners' Capital (Deficit) for the Six months
Ended June 30, 1998 and the year ended December 31, 1997............6
Statements of Cash Flows for the Six Months Ended June 30,
1998 and June 30, 1997..............................................7
Notes to Financial Statements ............................................8
The financial statements have been prepared by Performance Asset Management
Fund IV, Ltd., A California Limited partnership ("Partnership"), without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules
and regulations. The Partnership believes that the disclosures are adequate
to make the information presented not misleading when read in conjunction
with the Partnership's financial statements for the year ended December 31,
1997. The financial information presented reflects all adjustments,
consisting only of normal recurring adjustments, which are, in the opinion
of management, necessary for a fair statement of the results for the
interim periods presented.
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
BALANCE SHEETS
June 30, 1998 and December 31, 1997
(UNAUDITED)
----------
<TABLE>
<CAPTION>
ASSETS
1998 1997
---- ----
<S> <C> <C>
Cash and equivalents $ 2,038,807 $ 1,995,810
Cash held in trust 2,915,849 2,849,998
Investments in distressed loan portfolios, net 9,731,679 7,255,916
Deposit on distressed loan portfolio acquisition -- 2,858,076
Due from affiliate -- 231,443
Other assets 104,977 104,977
------------ ------------
Total assets $ 14,791,312 $ 15,296,220
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 5,350 $ 61,713
Due to affiliates, net 593,979 1,225,572
------------ ------------
Total liabilities 599,329 1,287,285
------------ ------------
Commitments and contingencies
General partner's deficit (no units outstanding) (1,020,772) (1,039,077)
Limited partners' capital (12,000 units authorized;
11,462 units issued and outstanding at June 30, 1998 and
December 31, 1997) 15,212,755 15,048,012
------------ ------------
Total partners' capital 14,191,983 14,008,935
------------ ------------
Total liabilities and partners' capital $ 14,791,312 $ 15,296,220
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(UNAUDITED)
----------
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended June 30 Months Ended June 30
-------------------- --------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Portfolio collections $1,426,270 $671,596 $2,487,306 $1,417,226
Less: portfolio basis recovery 1,353,199 647,997 2,372,118 1,391,732
---------- -------- ---------- ----------
Net investment income 73,071 23,599 115,188 25,494
---------- -------- ---------- ----------
Cost of operations:
Collection expense 11,185 130,582 104,203 167,889
Management fee expense 63,953 51,632 131,158 108,724
Professional fees 27,127 73,178 64,479 165,793
Amortization -- 918 -- 1,925
General and administrative expense 1,049 10,903 1,421 63,800
---------- -------- ---------- ----------
Total operating expenses 103,314 267,213 301,261 508,131
---------- -------- ---------- ----------
Income (loss) from operations (30,243) (243,614) (186,073) (482,637)
Other income:
Interest 52,887 161,056 113,015 188,640
Other income 11,336 2,275 256,106 9,993
---------- -------- ---------- ----------
Net income (loss) $33,980 ($80,283) $183,048 ($284,004)
========== ======== ========== ==========
Net income (loss) allocable to general partner $3,398 ($8,028) $18,305 ($28,400)
========== ======== ========== ==========
Net income (loss) allocable to limited partners $30,582 ($72,255) $164,743 ($255,604)
========== ======== ========== ==========
Net income (loss) per limited partnership unit $2.67 ($6.30) $14.37 ($22.30)
========== ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
For the Six Months Ended June 30, 1998 and Year Ended December 31, 1997
(UNAUDITED)
----------
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
------------ ------------ ------------
<S> <C> <C> <C>
Balance, December 31, 1995 ($516,291) $19,815,741 $19,299,450
Redemption of partnership units -- (40,000) (40,000)
Distributions (159,334) (1,433,425) (1,592,759)
Net loss (73,217) (658,949) (732,166)
------------ ------------ ------------
Balance, December 31, 1996 (748,842) 17,683,367 16,934,525
Redemption of partnership units -- (25,000) (25,000)
Distributions (222,907) (2,004,399) (2,227,306)
Net income (67,328) (605,956) (673,284)
------------ ------------ ------------
Balance, December 31, 1997 ($1,039,077) $15,048,012 $14,008,935
Net income 18,305 164,743 183,048
------------ ------------ ------------
Balance, June 30, 1998 ($1,020,772) $15,212,755 $14,191,983
============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1998 and 1997
(UNAUDITED)
----------
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $183,048 ($284,004)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization -- 1,925
Decrease (increase) in assets:
Due from affiliates 231,443 136,022
Increase (decrease) in liabilities:
Accounts payable (56,363) 5,511
Due to affiliates (631,593) 1,415,057
----------- -----------
Net cash provided by (used in)
operating activities (273,465) 1,274,511
----------- -----------
Cash flows provided by (used in) investing activities:
Recovery of portfolio basis 2,372,118 1,391,732
Cash held in trust (65,851) 689,995
Purchase of investments in distressed loan portfolios (4,847,881) (520,672)
Deposit on distressed loan portfolio acquisition 2,858,076 --
----------- -----------
Net cash provided by investing activities 316,462 1,561,055
----------- -----------
Cash flows provided by (used in) financing activities:
Redemption of limited partnership units -- (15,000)
Distributions to partners -- (1,909,915)
----------- -----------
Net cash used in financing activities -- (1,924,915)
----------- -----------
Net (decrease) increase in cash 42,997 910,651
Cash at beginning of period 1,995,810 2,121,545
----------- -----------
Cash at end of period $2,038,807 $3,032,196
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
Organization and Description of Business
Performance Asset Management Fund IV, Ltd., A California Limited Partnership
("Partnership"), was formed in October 1992, for the purpose of acquiring
investments in or direct ownership of distressed loan portfolios from financial
institutions and other sources. Interests in the Partnership were sold in an
intrastate offering to residents of California pursuant to the provisions of
Section 3(A)(11) of the Securities Act of 1933; however, the Partnership did not
begin its primary operations until March 1993. The General Partner is
Performance Development, Inc., a California corporation ("General Partner").
The Partnership terminates at December 31, 2005. At that time, the Partnership
will distribute any remaining cash after payment of Partnership obligations
following the sale or collection of all assets.
Profits, losses, and cash distributions are allocated 90% to the limited
partners and 10% to the General Partner until such time as the limited partners
have received cash equal to 100% of their contributions to the capital of the
Partnership plus an amount equal to 6% per annum of the original limited partner
capitalization yet to be returned. Thereafter, Partnership profits, losses, and
cash distributions will be allocated 70% to the limited partners and 30% to the
General Partner.
Cash and Equivalents
The Partnership defines cash equivalents as all highly liquid investments with
an original maturity of three months or less. The Partnership maintains cash
balances at one bank in accounts which, at times, may exceed federally insured
limits. The Partnership uses a cash management system whereby idle cash balances
are transferred daily into a master account and invested in high quality,
short-term securities that do not enjoy the benefit of the federal insurance.
The General Partner believes that these cash balances are not subject to any
significant credit risk, due to the nature of the investments and the strength
of the bank and has not experienced any losses with cash and equivalent
investments. The Partnership received interest income from these investments of
$113,015 and $188,640 for the six months ended June 30, 1998 and June 30, 1997,
respectively.
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Cash Held in Trust
The General Partner anticipates that the Partnership and Performance Asset
Management, Ltd., A California Limited Partnership; Performance Asset Management
Fund II, Ltd. A California Limited Partnership; Performance Asset Management
III, Ltd., A California Limited Partnership; and Performance Asset Management
Fund V, Ltd. A California Limited Partnership ("PAM Funds") may, in the future,
be reorganized and merged into Performance Asset Management Company, a Delaware
Corporation ("PAMCO") ("Rollup"). In an effort to accomplish the Rollup, the
General Partner, on behalf of the Partnership and the PAM Funds, entered into an
agreement on December 12, 1995, with the State of California Department of
Corporations ("Department"), pursuant to the provisions of which the Performance
Asset Management Fund Trust ("Trust") was created. Certain funds of the
Partnership are held by the Trust and these funds held in trust are subject to
the terms of the Trust agreement. The Trust was the recipient of those funds
resulting from a settlement of certain then pending litigation between the
Partnership and its affiliates and West Capital Financial Services Corp. and its
affiliates. The funds held by the Trust must not be less than $5,000,000 which
is comprised of funds from the Partnership and the PAM Funds. The Trust
agreement specifies that the Trust will terminate and the trustee will
distribute all of the remaining funds held by the trustee on August 16, 1998 if
the Rollup is not completed by such date. The Department has indicated that it
will oppose the termination of the Trust on August 16, 1998. The Partnership is
attempting to reach an agreement with the Department regarding the termination
of the Trust and the disposition of the Partnership's funds held by the Trust.
The Partnership's share of the Trust's funds at June 30, 1998 and December 31,
1997 was $2,915,849 and $2,849,998.
Investments in Distressed Loan Portfolios and Revenue Recognition
Investments in distressed loan portfolios are carried at the lower of cost or
estimated net realizable value. Amounts collected are treated as a reduction to
the carrying basis of the related investments on an individual portfolio basis
and are reported in the Statement of Operations as portfolio basis recovery.
Under the cost recovery method of revenue recognition used by the Partnership,
net investment income is not recognized until 100% recovery of the carrying
value of the investment in each portfolio occurs. Estimated net realizable value
represents the General Partner's estimates, based on its present plans and
intentions, of the present value of future collections. Due to the distressed
nature of these investments, no interest is earned on outstanding balances, and
there is no assurance that the unpaid principal balances of these investments
will ultimately be collected. Any adjustments reducing the carrying value of the
individual portfolios are recorded in the results of operations as a general and
administrative expense.
Organization Costs, Net
Organization costs include legal and other professional fees incurred related to
the organization of the Partnership. These costs are capitalized and amortized
using the straight-line method over five years. Organization costs were fully
amortized at December 31, 1997.
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Professional Fees
Professional fees are incurred in relation to ongoing accounting and legal
assistance.
Income Taxes
No provision for income taxes has been made in the financial statements, except
for the Partnership's minimum state franchise tax liability of $800. All
partners report individually on their share of the Partnership's operating
results.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reported period. Actual
results could differ from the estimates.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Disclosure regarding: Forward Looking Statements
The information contained in this report on Form 10-QSB, other than historical
facts, contains "forward-looking statements" (as such term is defined with the
meaning of the Private Securities Litigation Reform Act of 1995) including,
without limitation, statements as to the Partnership's objective to grow through
future portfolio acquisitions, portfolio account sales, the Partnership's
ability to realize operating efficiencies in the integration of its
acquisitions, trends in the Partnership's future operating performance, and
statements as to the Partnership's or the General Partner's beliefs,
expectations and opinions. Forward looking statements may be identified by the
use of forward looking terminology, such as "may", "will", "expect", "estimate",
"anticipate", "probable", "possible", "should", "continue", or similar terms,
variations of those terms or the negative of those terms. Forward-looking
statements are subject to risks and uncertainties and may be affected by various
factors which may cause actual results to differ materially from those in the
forward-looking statements. In addition to the factors discussed in this Report,
certain risks, uncertainties and other factors, including, without limitation,
the risk that the Partnership will not be able to realize operating efficiencies
in the integration of its acquisitions, risks associated with growth and future
acquisitions, fluctuations in quarterly operating results, and the other risks
detailed from time to time in the Partnership's filings with the Securities and
Exchange Commission, including the Partnership's Annual Report on Form 10-KSB,
dated on March 31, 1998, can cause actual results and developments to be
materially different from those expressed or implied by such forward-looking
statements.
10
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Results of Operations
The Partnership recorded net investment income of $115,188 for the six months
ended June 30, 1998, a 352% increase from $25,494 for the comparable period in
1997. This increase was generated from collections in excess of the carrying
value of certain portfolios. Approximately 5% of portfolio collections received
for the six months ended June 30, 1998 are reflected as income, compared to 2%
for the similar period in 1997.
Net investment income of $115,188 for the six months ending June 30, 1998 is the
direct result of portfolio collection proceeds from eight of the Partnership's
portfolios. These eight portfolios owned by the Partnership contain two
portfolios which contribute 58% of the net investment income and six other
portfolios which contribute the remaining net investment income during the six
months ended June 30, 1998. Collections for the months ended April 30, 1998, May
31, 1998, and June 30, 1998, totaled $411,489, $456,357, and $558,424,
respectively.
The Partnership received proceeds from portfolio sales of $445,949 of which 100%
were recorded as recoveries of investment basis and reflected in portfolio
collections for the six months ended June 30, 1998. Proceeds totaling $54,019
were received for the comparable period ended June 30, 1997. The General Partner
continues to believe that proceeds from both collection and portfolio account
sales will continue in subsequent periods.
Total operating expenses of the Partnership decreased 41% to $301,261 for the
six months ended June 30, 1998, from $508,181 for the comparable period in 1997.
The decrease is due primarily to a 61% reduction in professional fees to $64,479
for the six months ended June 30, 1998, from $165,793 for the similar period in
1997. Collection expenses decreased 38%, to $104,203 for the six months ended
June 30, 1998 from $167,889 for the same period in 1997. This is due to a
decrease in skip tracing used in that period. Management fees increased by 21%
to $131,158 for the six months ended June 30, 1998, from $108,724, which was
directly related to the increase of investments in distressed loan portfolios
and net assets under management.
Total operating expenses of the Partnership as a percentage of portfolio
collections decreased 24%, to 12% for the six months ended June 30, 1998 from
36% in the comparable period in 1997. This decrease is primarily attributed to a
decrease in professional fees due to less activity in legal fees associated with
the Partnership. Operating expenses as a percentage of portfolio collections
decreased 33% to 7% for the three months ended June 30, 1998, compared to 40%
for the similar period ended June 30, 1997. The decrease in operating expense as
a percent of portfolio collections is primarily attributed to increased
portfolio sales reflected in portfolio collections.
Total operating expenses of the Partnership decreased 61% to $103,314 for the
three months ended June 30, 1998 from $267,213 for the comparable period of
1997. The decrease in total operating expenses is primarily attributed to a
reduction in collection expenses by 91%. This decrease in collection expenses is
due essentially to a reduction in skip tracing used to locate and identify
Partnership debtor accounts. Management
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fees increased 24% for the quarter ended June 30, 1998 to $63,953 from $51,632
for the similar period ended 1997, due to the acquisition of new portfolios
increasing the net assets under management. Professional fees decreased 63% to
$27,127, from $73,173 due to a reduction of legal fees.
Financial Condition, Liquidity and Capital Resources.
The Partnership's total assets decreased approximately 3% to $14,791,312 as of
June 30, 1998, from $15,296,220 at December 31, 1997. The decrease was primarily
attributed to portfolio collection proceeds of $2,487,306, of which 95% or
$2,372,118 was recorded as a reduction of investment portfolio assets. The
purchase related to the deposit on distressed loan portfolio acquisition of
$2,858,076 was consummated shortly after the year-end, and is reflected in the
increase in investments in distressed loan portfolios. The decrease of $231,443
in due from affiliates is primarily the result of the receipt of payments due
the Partnership for the prior period's collections.
The decrease of $631,593 in due to affiliates during the six months ended June
30, 1998, was due primarily to the payments of accrued legal expenses and
management fees to the General Partner.
The Partnership acquired three new distressed loan portfolio assets in the first
half of 1998 from third party financial institutions which specialize in credit
card origination. The General Partner anticipates that the Partnership will
acquire additional portfolios in the near future. Future acquisitions will
depend on the asset market, which continues to grow in size and diversity. The
General Partner believes that the Partnership will continue to acquire
low-end-priced distressed portfolios; however, the General Partner will continue
to evaluate assets with different pricing and debtor account structure in order
to determine whether such portfolios can generate strong immediate cash flows
and provide additional liquidity to the Partnership.
The Partnership has made no future commitments with credit card originators and
other financial institutions to acquire portfolio assets. The General Partner
plans to use its present contacts and relationships to identify and acquire
additional assets at optimal prices, and believes that it will have no
difficulties in identifying and acquiring such assets. The General Partner
suspended distributions to its partners in the third quarter of 1997 to improve
the financial condition of the Partnership and provide the Partnership future
portfolio acquisitions. The General Partner also believes current cash reserves
and future portfolio collection proceeds will be sufficient to acquire
additional portfolio assets in the next twelve months. However, the General
Partner will continuously monitor its liquidity and evaluate whether additional
external capital resources will be necessary for future growth.
Impact of Additional Partnership Acquisitions and Resources on Operations.
The General Partner anticipates that additional portfolio acquisitions and
continued expansion will improve the Partnership's liquidity, profitability and
financial condition, which will result in increased portfolio collections and
sales. The General Partner believes that Performance Capital Management, Inc., a
California corporation and an affiliate to the General Partner ("PCM"), which
serves as the servicer of the
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Partnership's portfolios of indebtedness, must continue to increase that amount
of its collection representatives and human resources in order to supplement
such growth to the Partnership. PCM is seeking to lease office space in which it
will plan to move and expand their facilities. The General Partner believes that
this move provides the adequate operating facilities for the future growth of
PCM, which will subsequently increase portfolio collections for the Partnership.
A proposal is currently under consideration by the General Partner, pursuant to
which PAM Funds and the Partnership would merge with and into PAMCO. The result
of the proposed merger would be that a series of interrelated changes to the
current organizational form of PAMCO would be implemented, including (a) merging
the Partnership and the PAM Funds with and into PAMCO, as a result of which
PAMCO would be the sole surviving entity; (b) terminating the PAM Funds and the
Partnership and (c) converting the Limited Partners interests in the Partnership
into shares of common stock issued by PAMCO.
Year 2000 Compliance.
The General Partner recognizes that the arrival of the Year 2000 poses a unique
challenge to the ability of the computer systems of PCM used to service, manage
and collect the portfolios in which the Partnership has an interest, to
recognize properly and process date sensitive information related to the date
change from December 31, 1999 to January 1, 2000. As the century date change
occurs, date-sensitive systems may recognize the Year 2000 as 1900, or not at
all. This inability to recognize or treat properly the Year 2000 may cause PCM's
computer systems to process financial and operational information incorrectly,
which could have a material adverse effect on the Partnership's results of
operations. PCM has assessed and begun remedial work relating to PCM's computer
software programs and business processes to provide for PCM's ability to
continue to function effectively.
In 1997, PCM began the process of identifying, evaluating and implementing
changes to PCM's computer programs necessary to address the Year 2000 issue. The
General Partner is currently addressing the Partnership's internal Year 2000
issue by coordinating with PCM in connection with PCM's modification of existing
programs and conversions to new programs. The General Partner is also in
communication with financial institutions and other entities with which the
Partnership conducts business to help them identify and resolve the Year 2000
issue as it relates to the Partnership's business operations. An assessment of
the readiness of those third party institutions and entities with which the
Partnership does business is ongoing. While PCM and the General Partner are
confident that PCM will complete the assessment and remediation of PCM's
computer software, there can be no assurance that the necessary modifications
and conversions by those third party institutions and entities with which the
Partnership conducts business will be completed in a timely manner, which could
have a material adverse effect on the Partnership's results of operations. The
total cost to the Partnership associated with the required modifications and
conversions is not expected to be material to the Partnership's results of
operations and financial position and is being expensed as incurred.
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PART II
Item 1. Legal Proceedings.
No additional proceedings have occurred since May 10, 1998, the date of the
latest report provided. In addition, no material developments are noted with
respect to those matters described in the latest report dated May 10, 1998.
Reference is made to the Partnership's Form 10-KSB dated March 31, 1998, in
which such legal proceedings were reported in Part I, Item 3, "Legal
Proceedings". The registrant, by this reference, makes that disclosure a part of
this Form 10-QSB.
Item 2. Exhibits and Reports.
(a) Exhibits
Exhibit Number Exhibit
1 Certificate of Limited Partnership Form LP-1 (Charter
Document) *
2 Agreement of Limited Partnership (Instrument
defining the rights of Security Holders) **
* Reference is made to the Partnership's Form 10-KSB, dated March 31, 1997,
in which that Certificate of Limited Partnership was included as an
exhibit. The Partnership, by this reference, makes that Certificate of
Limited Partnership a part of this Form 10-QSB.
** Reference is made to the Partnership's Form 10-KSB, dated March 31, 1997,
in which that Agreement of Limited Partnership was included as an exhibit.
The Partnership, by this reference, makes that Agreement of Limited
Partnership a part of this Form 10-QSB.
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SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Partnership
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: August 12, 1998 Performance Asset Management Fund IV, Ltd.,
A California Limited Partnership
(Registrant)
By: _________________________________
Vincent E. Galewick
President of the General Partner,
Performance Development, Inc.
