SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1997
Commission File Number 333-16825
JWH GLOBAL TRUST
(Exact name of registrant as specified in its charter)
Delaware 36-4113382
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
233 South Wacker Drive, Suite 2300, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312)460-4000
Not Applicable
(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
<TABLE>
Part I. Financial Information
Item 1. Financial Statements
Following are Financial Statements for the fiscal quarter ended September 30, 1997,
and the additional time frames as noted:
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 9/30/97 To 9/30/97 Ended 12/31/96 Ended 9/30/96 To 9/30/96
-------------- -------------- -------------- --------------------------
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Statement of
Financial Condition X X
Statement of
Operations X X N/A N/A
Statement of Changes
in Partners' Capital X
Statement of
Cash Flows X N/A
Notes to Financial
Statements X
JWH GLOBAL TRUST
STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
Sep 30, 1997 Dec 31, 1996
--------------- -------------
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ASSETS
Cash $0 $1,000
Equity in commodity futures
trading accounts:
Account balance 45,191,462 0
Unrealized gain on open futures
and forwards contracts 1,546,714 0
--------------- -------------
46,738,176 1,000
Interest receivable 149,351 0
Prepaid Initial O&O 616,805 0
--------------- -------------
Total assets $47,504,331 $1,000
=============== =============
LIABILITIES AND UNITHOLDERS' CAPITAL
Liabilities:
Accrued commissions due to CIS $568,094 $0
Accrued management fee 127,803 0
Accrued incentive fee 58,783 0
Accrued operating expenses 27,219 0
Redemptions payable 0 0
Selling and Offering Expenses Payable 43,043 0
--------------- -------------
Total liabilities 824,942 0
Unitholders' Capital:
Beneficial owners ( 449,120.26 units outstan 46,205,726 817
at 9/30/97, 8.17 units outstanding at 12/31/96)
(see Note 1)
Managing owner (4,604.04 units outstanding 473,663 183
9/30/97 and 1.83 at 12/31/96) (see Note 1)
--------------- -------------
Total unitholders' capital 46,679,389 1,000
--------------- -------------
Total liabilities and
unitholders' capital $47,504,331 $1,000
=============== =============
In the opinion of management, these statements reflect all adjustments necessary
to fairly state the financial condition of JWH Global Trust. (See Note 6)
JWH GLOBAL TRUST
STATEMENTS OF OPERATIONS
UNAUDITED
Jul 1, 1997 Jun 2, 1997*
through through
Sep 30, 1997 Sep 30, 1997
--------------- -------------
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REVENUES
Gains on trading of commodity futures
and forwards contracts, physical
commodities and related options:
Realized gain (loss) on closed positions ($194,893) ($653,738)
Change in unrealized gain (loss)
on open positions 994,940 1,546,714
Interest income 373,497 429,697
Foreign currency transaction gain (loss) (45,933) (37,929)
--------------- -------------
Total revenues 1,127,611 1,284,744
EXPENSES
Commissions paid to CIS 497,286 568,094
Exchange fees 4,196 4,609
Management fees 309,168 353,025
Incentive fees 52,276 58,783
Operating expenses 89,706 104,957
--------------- -------------
Total expenses 952,632 1,089,468
--------------- -------------
Net profit (loss) $174,979 $195,276
=============== =============
PROFIT (LOSS) PER UNIT OF
OWNERSHIP INTEREST $2.72 $2.88
=============== =============
(see Note 1) (see Note 1)
* Commencement of Operations
This Statement of Operations, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of JWH Global Trust. (See Note 6)
JWH GLOBAL TRUST
STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL
From June 2 (commencement of operations) through September 30, 1997
UNAUDITED
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Additional Units Sold Beneficial Managing
(see Note 1) Units* Owners Owner Total
--------------- ------------- -------------- -------------
Unitholders' capital at January 1, 1997 8.17 $817 $183 $1,000
Redemption of Initial Owners (8.17) (817) (183) ($1,000)
Additional Units Sold 457,755.33 46,879,951 470,000 47,349,951
(see Note 1)
Net profit (loss) 191,613 3,663 195,276
Redemptions (see Note 1) (8,635.08) (865,838) (865,838)
--------------- ------------- -------------- -------------
Unitholders' capital at September 30, 1997 449,120.26 $46,205,726 $473,663 $46,679,389
=============== ============= ============== =============
Net asset value per unit
June 2, 1997 (see Note 1) 100 100
Net profit (loss) per unit (see Note 1) 2.88 2.88
------------- --------------
Net asset value per unit
September 30, 1997 $102.88 $102.88
* Units of Beneficial Ownership.
This Statement of Changes in Unitholders' Capital, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of JWH Global Trust. (See Note 6)
JWH GLOBAL TRUST
STATEMENTS OF CASH FLOWS
UNAUDITED
Jun 2, 1997*
through
Sep 30, 1997
---------------
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Cash flows from operating activities:
Net profit (loss) $195,276
Adjustments to reconcile net profit
(loss) to net cash provided by
(used in) operating activities:
Change in assets and liabilities:
Unrealized gain (loss) on open
futures contracts (1,546,714)
Interest receivable (149,351)
Prepaid Organization and Offering Expenses (616,805)
Accrued liabilities 781,899
Redemptions payable 0
Selling and Offering Expenses Payable 43,043
---------------
Net cash provided by (used in)
operating activities (1,292,652)
Cash flows from financing activities:
Additional Units Sold 47,349,951
Unitholder redemptions (866,838)
---------------
Net cash provided by (used in)
financing activities 46,483,114
---------------
Net increase (decrease) in cash 45,190,462
Cash at beginning of period 1,000
---------------
Cash at end of period $45,191,462
===============
* Commencement of Operations
This Statement of Cash Flows, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of JWH Global Trust. (See Note 6)
</TABLE>
JWH GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(1) GENERAL INFORMATION AND SUMMARY
JWH Global Trust (the "Trust") is a Delaware business trust
organized on November 12, 1996 under the Delaware Business Trust
Act. The business of the Trust is the speculative trading of
commodity interests, including futures contracts on currencies,
interest rates, energy and agricultural products, metals and
stock indices, options on such futures contracts, and spot and
forward contracts on currencies and precious metals ("Commodity
Interests") pursuant to the trading instructions of an
independent trading advisor. The managing owner of the Trust is
CIS Investments, Inc., a Delaware corporation organized in June
1983 (the "Managing Owner"). The Managing Owner is registered
as a commodity pool operator under the Commodity Exchange Act,
as amended, and is responsible for administering the business
and affairs of the Trust exclusive of trading decisions. The
Managing Owner is an affiliate of Cargill Investor Services,
Inc., the clearing broker for the Trust (the "Clearing Broker")
and CIS Financial Services, Inc., which acts as the Trust's
currency dealer ("CISFS"). Trading decisions for the Trust
were made by an independent commodity trading advisor, John W.
Henry & Company, Inc.
The initial public offering of the Trust's units of beneficial
interest ("Units") commenced on April 3, 1997 and concluded on
September 23, 1997. The initial offering price was $100 per
Unit until the initial closing of the Trust, and thereafter at
the current Net Asset Value of the Trust on the last business
day of the calendar month. The total amount of the initial
offering was $50,000,000. On September 24, 1997, a registration
statement was declared effective with the SEC to register
$155,000,000 of additional Units. The Units are currently
offered pursuant to a Prospectus dated September 26, 1997. A
Post-Effective Amendment was declared effective with the SEC on
October 20, 1997 to deregister $3,120,048.99 of Units which
remained unsold upon the termination of the initial offering of
the Units. As a result of the Units being offered at each
month-end Net Asset Value, the total number of Units authorized
for the Trust is not determinable and therefore is not disclosed
in the financial statements.
The initial closing of the Trust was on May 30, 1997 and the
Trust commenced trading on June 2, 1997. The initial Beneficial
Owners of the Trust, representing ownership of $1,000, were
redeemed on May 30, 1997, prior to the commencement of trading.
The minimum subscription size for the offering is $5,000 for
individuals and $2,000 for trustees or custodians of eligible
employee benefit plans and individual retirement accounts
(subject to higher minimums in certain States); and $1,000 for
existing investors in the Trust (the "Unitholders"). By
September 30, 1997, a total of 457,755.33 Units were sold to
Beneficial Owners of the Trust for an investment of $46,879,951
and 4,604.04 Units were sold to the Managing Owner of the Trust
for an investment of $470,000, resulting in a total of
462,359.37 Units representing a total investment of $47,349,951
being sold in the offering period commencing April 3, 1997.
The Managing Owner of the Trust advanced organization and
offering costs of $650,000. The Trust reimbursed the Managing
Owner for these costs. The Trust is amortizing these costs over
60 months.
A Unitholder may cause the Trust to redeem any or all of such
Unitholder's Units at Net Asset Value as of the last business
day of any calendar month. Written redemption requests must be
received by the Managing Owner no later than five business days
prior to month-end (including the last business day of the
month) to effect redemption as of such month-end. A Unit which
is redeemed at or prior to the end of the eleventh full month
after its sale will be assessed a redemption charge of 3% of the
Net Asset Value per Unit as of the date of redemption. The
Managing Owner may declare additional redemption dates by notice
to the Unitholders. Redemption proceeds will generally be paid
within ten business days after the month-end of redemption. The
Trust's Third Amended and Restated Declaration and Agreement of
Trust contains a full description of the Trust's redemption and
distribution procedures.
The Trust shall terminate on December 31, 2026 if none of the
following occur prior to that date: (1) investors holding more
than 50 percent of the outstanding Units notify the Managing
Owner to dissolve the Trust as of a specific date; (2)
withdrawal, insolvency, bankruptcy, retirement, resignation,
expulsion or dissolution of the Managing Owner of the Trust; (3)
bankruptcy or insolvency of the Trust; (4) decline in the
aggregate Net Assets of the Trust to less than $2,500,000; (5)
decline in the Net Asset Value per Unit to $50 or less; (6)
dissolution of the Trust pursuant to the Third Amended and
Restated Declaration and Agreement of Trust; or (7) any other
event which shall make it unlawful for the existence of the
Trust to be continued or require dissolution of the Trust. The
Trust's Third Amended and Restated Declaration and Agreement of
Trust contains a full description of the Trust's term and
dissolution procedures.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the Trust conform to
generally accepted accounting principles and to general
practices within the commodities industry. The following is a
description of the more significant of those policies which the
Trust follows in preparing its financial statements.
Financial Accounting Standards Board ("FASB") Interpretation No.
39 Reporting
Reporting in accordance with FASB Interpretation No. 39 ("FIN
39") is not applicable to the Trust and the provisions of FIN 39
do not have any effect on the Trust's financial statements.
Revenue Recognition
Commodity futures contracts, forward contracts, physical
commodities and related options are recorded on the trade date.
All such transactions are reported on an identified cost basis.
Realized gains and losses are determined by comparing the
purchase price to the sales price when the trades are offset.
Unrealized gains and losses reflected in the statements of
financial condition represent the difference between original
contract amount and market value (as determined by exchange
settlement prices for futures contracts and related options and
cash dealer prices at a predetermined time for forward
contracts, physical commodities and their related options) as of
the last business day of the quarter-end.
CIS and CISFS credit the Trust, as of each month-end, with
interest on the Trust's assets deposited with CIS and CISFS at
100% of the 91-day Treasury bill rate for deposits denominated
in dollars and at the rates agreed between the Trust and CIS and
CISFS for deposits denominated in other currencies.
Commissions
The Trust pays the Clearing Broker a monthly flat-rate brokerage
commission at an annual rate of 6.5% (or approximately 0.54% per
month) of the Trust's month-end assets after deduction of the
management fee paid to the trading advisor (see section (3)
below). Certain large investors are eligible to be charged a
brokerage fee of 5%.
Foreign Currency Transactions
Trading accounts on foreign currency denominations are
susceptible to both movements on underlying contract markets as
well as fluctuation in currency rates. Foreign currencies are
translated into U.S. dollars for closed positions at an average
exchange rate for the quarter while quarter-end balances are
translated at the quarter-end currency rates. The impact of the
translation is reflected in the statement of operations.
Statements of Cash Flows
For purposes of the statements of cash flows, cash represents
cash on deposit with the Clearing Broker and CISFS .
(3) FEES
Management fees are accrued and paid monthly and incentive fees
are accrued monthly and paid quarterly. Trading decisions for
the period of these financial statements were made by John W.
Henry & Company, Inc. ("JWH"), the Trust's commodity trading
advisor. Pursuant to an agreement between the Trust and JWH,
JWH receives 0.33% of the month-end assets under its management
after deduction of a portion of the brokerage commissions at a
1.25% annual rate (rather than the 6.5% annual rate). The Trust
pays JWH a quarterly incentive fee of 15% of trading profits
(after deduction of a portion of the brokerage commissions at a
1.25% annual rate, rather than the 6.5% annual rate) achieved on
the assets of the Trust allocated by the Managing Owner to JWH's
management. Trading profits are calculated on the basis of the
overall performance of the Trust, not the performance of each
Trading Program, utilized by JWH, considered individually.
(4) INCOME TAXES
No provision for Federal Income Taxes has been made in the
accompanying financial statements as each beneficial owner is
responsible for reporting income (loss) based on the pro rata
share of the profits or losses of the Trust. The Trust is
responsible for the Illinois Personal Property Replacement Tax
based on the operating results of the Trust. Such tax amounted
to $4,188 for the period ended September 30, 1997 and is
included in operating expenses in the Statement of Operations.
(5) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Trust was formed to speculatively trade Commodity Interests.
It has commodity transactions and cash on deposit at its
Clearing Broker. In the event that volatility of trading of
other customers of the Clearing Broker impaired the ability of
the Clearing Broker to satisfy its obligations to the Trust, the
Trust would be exposed to off-balance sheet risk. Such risk is
defined in Statement of Financial Accounting Standards No. 105
("SFAS 105") as a credit risk. To mitigate this risk, the
Clearing Broker, pursuant to the mandates of the Commodity
Exchange Act, is required to maintain funds deposited by
customers relating to futures contracts in regulated commodities
in separate bank accounts which are designated as segregated
customers' accounts. In addition, the Clearing Broker has set
aside funds deposited by customers relating to foreign futures
and options in separate bank accounts which are designated as
customer secured accounts. Lastly, the Clearing Broker is
subject to the Securities and Exchange Commission's Uniform Net
Capital Rule which requires the maintenance of minimum net
capital of at least 4% of the funds required to be segregated
pursuant to the Commodity Exchange Act. The Clearing Broker has
controls in place to make certain that all customers maintain
adequate margin deposits for the positions which they maintain
at the Clearing Broker. Such procedures should protect the
Trust from the off-balance sheet risk as mentioned earlier. The
Clearing Broker does not engage in proprietary trading and thus
has no direct market exposure.
The counterparty of the Trust for futures contracts traded in
the United States and most non-U.S. exchanges on which the Trust
trades is the Clearing House associated with the exchange. In
general, Clearing Houses are backed by the exchange membership
and will act in the event of non-performance by one of its
members or one of the members' customers and as such should
significantly reduce this credit risk. In the cases where the
Trust trades on exchanges on which the Clearing House is not
backed by the exchange membership, the sole recourse of the
Trust for non-performance will be the Clearing House.
The Trust holds futures and futures options positions on the
various exchanges throughout the world. The Trust holds foreign
exchange forward contracts with CISFS. CISFS acts as a broker
to these transactions and deals only with bank counterparties
having assets in excess of $100,000,000. As defined by SFAS
105, futures positions are classified as financial instruments.
SFAS 105 requires that the Trust disclose the market risk of
loss from all of its financial instruments. Market risk is
defined as the possibility that future changes in market prices
may make a financial instrument less valuable or more onerous.
If the markets should move against all of the futures positions
held by the Trust at the same time, and if the markets moved
such that the CTA was unable to offset the futures positions of
the Trust, the Trust could lose all of its assets and the
Beneficial Owners would realize a 100% loss. The Trust has a
contract with one CTA who makes all of the trading decisions.
The CTA trades one program diversified among all commodity
groups and another program diversified among the various futures
contracts in the financials and metals group. The CTA trades on
U.S. and non-U.S. exchanges. Cash was on deposit with the
Clearing Broker and CISFS in each time period of the financial
statements which exceeded the cash requirements of the Commodity
Interests of the Trust.
The following chart discloses the dollar amount of the
unrealized gain or loss on open contracts related to Commodity
Interests for the Trust as of September 30, 1997:
COMMODITY GROUP UNREALIZED GAIN/(LOSS)
AGRICULTURAL COMMODITIES (309,809)
FOREIGN CURRENCIES (155,479)
STOCK INDICES 263,950
ENERGIES (402,910)
METALS 339,420
INTEREST RATE INSTRUMENTS 1,811,542
TOTAL 1,546,714
The range of maturity dates of these exchange traded open
contracts is December of 1997 to September of 1998. The average
open trade equity for the period of June 1, 1997 to September
30, 1997 was $1,710,145.
The margin requirement at September 30, 1997 was $8,354,053. To
meet this requirement, the Trust had on deposit with the
Clearing Broker $39,332,537 in segregated funds, $5,529,705 in
secured funds and $1,875,934 in non-regulated funds.
(6) FINANCIAL STATEMENT PREPARATION
The interim financial statements are unaudited but reflect all
adjustments that are, in the opinion of management, necessary
for a fair statement of the results for the interim periods
presented. These adjustments consist primarily of normal
recurring accruals.
Results of operations for interim periods are not
necessarily indicative of the operating results to be expected
for the fiscal year.
(7) INFORMATION PREVIOUSLY REPORTED ON FORM S-R
During the fiscal quarter ended September 30, 1997, Units of the
Trust were offered pursuant to two separate registration
statements. Units were offered pursuant to the initial
registration statement (No. 333-16825) until September 23,
1997. On September 24, 1997, a registration statement (No.
333-33937) was declared effective with the SEC to register
$155,000,000 of additional Units. The information previously
reported on Form S-R will be reported separately below for each
registration statement.
REGISTRATION STATEMENT N0. 333-16825 (subsequent report)
Item 701(f):
(1) The use of proceeds information is being disclosed for
Registration Statement No. 333-16825, declared effective with
the SEC on April 3, 1997.
(2) The offering commenced on April 3, 1997.
(4)(i) The offering concluded on September 23, 1997. On October
20, 1997 a Post-Effective Amendment was declared effective
with the SEC to deregister $3,120,048.99 of Units which
remained unsold upon the termination of the initial offering
of the Units.
(iv) For the account of the issuer, the amount sold in the
offering totaled $46,879,951 and the aggregate offering price
of the amount sold was $46,879,951.
(vi) The net offering proceeds to the issuer, after deducting
the total expenses previously reported in Item 9 of Form SR,
totaled $46,879,951.
(vii)From the effective date of the registration statement
to September 30, 1997, the amount of net offering proceeds to
the issuer used for Commodity Futures and Forward Trading (as
a direct or indirect payment to others) totaled $46,879,951.
REGISTRATION STATEMENT NO. 333-33937 (initial report)
Item 701(f):
(1) The use of proceeds information is being disclosed for
Registration Statement No. 333-33937, declared effective with
the SEC on September 24, 1997.
(2) The offering commenced on September 26, 1997.
(3) The offering has not terminated before any securities were
sold.
(4)(i) The offering has not terminated.
(ii) The name of the managing underwriter is Cargill Investor
Services, Inc.
(iii)The title of the security registered is Units of
Beneficial Interest.
(iv) For the account of the issuer, the amount of Units of
Beneficial Interest registered is $155,000,000; the aggregate
price of the offering amount registered is $155,000,000; the
amount sold in the offering as of September 30, 1997 is $0; and
the aggregate offering price of the amount sold as of September
30, 1997 is $0. This information is not applicable for the
account(s) of any selling security holder(s).
(v) From the effective date of the registration statement to
September 30, 1997, the amount of expenses incurred for the
issuer's account in connection with the issuance and
distribution of the securities registered is $0.
(vi) The net offering proceeds to the issuer, after deducting
the total expenses reported in (v) above, totaled $0.
(vii)From the effective date of the registration statement
to September 30, 1997, the amount of net offering proceeds to
the issuer used for Commodity Futures and Forward Trading (as
a direct or indirect payment to others) totaled $0.
(viii)The use of proceeds as described above does not
represent a material change in the use of proceeds described
in the prospectus.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation
Fiscal Quarter ended September 30, 1997
The Trust recorded a gain of $174,979 or $2.72 per Unit for the
third quarter of 1997. Trading for the Trust commenced on June
2, 1997, therefore there were only four months of trading
activity for the Trust during the fiscal year of 1997 and there
is no comparative to prior year activity. For the four month
period ended September 30, 1997, the Trust posted a gain of
$195,276 or $2.88 per Unit.
The Trust experienced gains during the first month of the
quarter as a result of strong profits in global interest rate
positions, metals and some currencies. During the second month
of the quarter, the Trust suffered losses in U.S and European
interest rates, currencies, crude oil and metals, while the
third month of the quarter experienced losses in foreign
exchange, agricultural markets, currencies and metals. At
September 30, 1997, John W. Henry & Company, Inc. was managing
100% of the Trust's assets in two trading programs, the Original
Investment Program and the Financial and Metals Portfolio.
In July, positions in U.S. Treasuries resulted in strong gains
as did positions in Japanese Government bonds. In the currency
markets, investors traded German marks and Swiss francs for U.S.
dollars, pushing the dollar to new highs against both
currencies. Except for sugar, positions in all other
agricultural commodities traded resulted in losses. Silver and
gold prices fell reflecting the sale by the Australian central
bank of 60% of its gold reserves; the positions held by the
Trust in both metals were profitable. The Trust recorded a gain
of $1,436,591.42 or $6.65 per Unit in July.
In August, crude oil prices were pressured downward and traded
erratically in part due to the recent return of Iraqi oil to
world markets. Trading volatility also accounted for losses in
the global interest rate sector and metals. Price reversals in
the U.S. 30-year bond and U.S. and Australian 10-year notes
resulted in losses for the Trust. While losses occurred in the
Deutsche mark and Swiss franc, gains were made in the Japanese
yen and the Nikkei stock index. Positions in coffee, cotton and
corn also resulted in gains for the Trust. However, these gains
did not offset the losses incurred and the Trust recorded a loss
of $702,857.20 or $2.41 per Unit in August.
In September, performance was negatively impacted by positions
in agricultural markets, currencies, metals and foreign
exchange. Positions in global interest rate markets and the
Japanese Nikkei were slightly profitable. Except for the
Australian dollar, positions in all other currencies traded
resulted in losses. Small gains in cotton failed to offset
losses in coffee, sugar and other agricultural markets.
Positions in silver and copper resulted in gains, offsetting
losses in gold. The Trust recorded a loss of $558,754.99 or
$1.50 per Unit in September.
During the quarter there were 235,891.50 additional Units sold
to the Beneficial Owners for an investment of $24,678,671 and
2,105.63 Units sold to the Managing Owner for an investment of
$220,000, representing a total of 237,997.13 additional Units
sold for a total investment of $24,898,671. Investors redeemed
a total of 197.05 Units during the quarter. At the end of the
quarter there were 449,120.26 Units outstanding owned by the
Beneficial Owners and 4,604.04 Units outstanding owned by the
Managing Owner.
During the fiscal quarter ended September 30, 1997, the Trust
had no credit exposure to a counterparty which is a foreign
commodities exchange or to any counterparty dealing in over the
counter contracts which was material.
See Footnote 5 of the Financial Statements for procedures
established by the Managing Owner to monitor and minimize market
and credit risks for the Trust. In addition to the procedures
set out in Footnote 5, the Managing Owner reviews on a daily
basis reports of the Trust's performance, including monitoring
of the daily net asset value of the Trust. The Managing Owner
also reviews the financial situation of the Trust's Clearing
Broker on a monthly basis. The Managing Owner relies on the
policies of the Clearing Broker to monitor specific credit
risks. The Clearing Broker does not engage in proprietary
trading and thus has no direct market exposure which provides
the Managing Owner assurance that the Trust will not suffer
trading losses through the Clearing Broker.
Effective September 12, 1997, Donald J. Zyck resigned as
Secretary and Treasurer of CIS Investments, Inc., the Managing
Owner of the Trust. Effective September 13, 1997, Rebecca S.
Steindel was elected Secretary and Richard A. Driver was elected
Treasurer of CIS Investments, Inc.
Fiscal Quarter ended June 30, 1997
The Trust recorded a gain of $20,296.37 or $0.16 per Unit for
the second quarter of 1997.
Trading for the Trust commenced on June 2, 1997, therefore there
was only one month of trading activity for the Trust during the
second quarter and there is no comparative to prior year
activity. The Trust experienced gains due to profitable
positions in metals, interest rates and stock indices. At June
30, 1997, John W. Henry & Company, Inc. was managing 100% of the
Trust's assets in two trading programs, the Original Investment
Program and the Financial and Metals Portfolio.
In June, gold prices fell to a four-year low as the U.S. dollar
strengthened and inflation indicators remained favorable.
Positions in both gold and silver were profitable. Continued
uncertainty surrounding the European currency union benefited
bond markets outside the EMU circle of nations. In the currency
markets, the Swiss monetary authority's determination to keep
the franc from appreciating against major currencies succeeded
in pushing the price of that currency down. After reaching a
20-year high in May, coffee prices fell steadily in June on news
of higher world exports and concerns about the impact of high
prices on demand. The Trust recorded a gain of $20,296.37 or
$.16 per Unit in June.
During the quarter there were 224,362.25 additional Units sold,
including 2,498.40 Units sold to the Managing Owner representing
a total of $22,451,280. Investors redeemed a total of 8,438.02
Units during the quarter (not including the redemption by the
initial Beneficial Owners of the Trust, representing ownership
of $1,000). At the end of the quarter there were 215,924.22
Units outstanding (including 2,498.40 Units owned by the
Managing Owner).
During the fiscal quarter ended June 30, 1997, the Trust had no
credit exposure to a counterparty which is a foreign commodities
exchange or to any counterparty dealing in over the counter
contracts which was material.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
The Trust and its affiliates may from time to time be parties
to various legal actions arising in the normal course of
business. The Managing Owner believes that there are no
proceedings threatened or pending against the Trust or any of
its affiliates which, if determined adversely, would have a
material adverse effect on the financial condition or results
of operations of the Trust.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
None
b) Reports on Form 8-K
None
SIGNATURES
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 and thereunto duly authorized.
JWH GLOBAL TRUST
Date: November 13, 1997 By: CIS Investments, Inc.,
its Managing Owner
By: /s/ Richard A. Driver
Richard A. Driver
Treasurer
(Duly authorized officer of
the Managing Owner and the
Principal Financial Officer
of the Managing Owner)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from JWH Global
Trust for the third quarter of 1997 and is qualified in its entirety by
reference to such 10-Q.
</LEGEND>
<CIK> 0001027099
<NAME> JWH GLOBAL TRUST
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 46,738,176
<SECURITIES> 0
<RECEIVABLES> 766,156
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 47,504,331
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 47,504,331
<CURRENT-LIABILITIES> 824,942
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 46,679,389
<TOTAL-LIABILITY-AND-EQUITY> 47,504,331
<SALES> 0
<TOTAL-REVENUES> 1,127,611
<CGS> 0
<TOTAL-COSTS> 952,632
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 174,979
<INCOME-TAX> 0
<INCOME-CONTINUING> 174,979
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 174,979
<EPS-PRIMARY> 2.72
<EPS-DILUTED> 2.72
</TABLE>