<PAGE>
WORLD MONITOR TRUST
Series A, Series B and Series C
Prospectus Supplement
THIS SUPPLEMENT UPDATES THE PROSPECTUS DATED MARCH 24, 1998,
AS SUPPLEMENTED ON MAY 27, 1998 (THE "PROSPECTUS").
This Supplement contains certain information which
supplements and/or updates information set forth in the
Prospectus, including:
- - Introduction. See page 1.
- - Past Performance of Series A. See page 2.
- - Past Performance of Series B. See page 3.
- - Past Performance of Series C. See page 4.
- - Risk Factors. See page 5.
- - Series A. See page 6.
- - Series B. See page 10.
- - Series C. See page 14.
- - Description of the Trust, Trustee, Managing Owner and
Affiliates. See page 21.
- - Income Tax Information. See page 24.
THIS SUPPLEMENT IS AN INTEGRAL PART OF THE PROSPECTUS AND
SHOULD BE DELIVERED AND READ AS ONE DOCUMENT.
The date of this Supplement is December 15, 1998
<PAGE>
INTRODUCTION
Unless noted herein, the disclosure in the Prospectus
remains materially accurate. Unless otherwise defined, all
capitalized terms have the same meaning in this Supplement
as they do in the Prospectus.
Each of Series A, Series B, and Series C commenced trading
on June 10, 1998, with $5,947,100, $5,618,800 and $5,615,200
of aggregate capital contributions from Limited Owners,
respectively, from the initial offering of Interests. As of
October 31, 1998, Series A, Series B and Series C have sold
$9,407,671, $8,764,083 and $8,944,257 of Interests,
respectively. The Interests in each Series continue to be
offered at their Net Asset Value as described in the
Prospectus.
PAST PERFORMANCE OF THE TRUST
Set forth on the following pages 2 to 4 is the past
performance of Series A, Series B and Series C since the
commencement of trading on June 10, 1998 through October 31,
1998. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF
FUTURE RESULTS.
1
<PAGE>
PAST PERFORMANCE OF SERIES A
Capsule Performance of World Monitor Trust - Series A
CTA: Eagle Trading Systems, Inc.
Rates of Return
(Computed on a Monthly Basis)
Month 1998
January
February
March
April
May
June (1.12)%
July (3.19)%
August 5.64%
September 1.58%
October (2.65)%
November
December
Year to Date 0.01%
Name of Pool: World Monitor Trust -- Series A
Type of Pool: Publicly-Offered
Start Date: June 1998
Aggregate subscriptions: $9,407,671*
Current Net Asset Value
per Interest: $100.01*
"Draw-down" means losses experienced
by the World Monitor Trust --Series A
over a specified period.
Largest monthly draw-down: (3.19)% July 1998
"Largest monthly draw-down" means the
greatest percentage decline in Net
Asset Value due to losses sustained
by the World Monitor Trust -- Series A
from the beginning to the end of a calendar
month.
Largest peak-to-valley
draw-down: (4.27)% June 1998 to July 1998
"Largest peak-to-valley
draw-down" means the greatest cumulative
percentage decline in month-end Net Asset
Value of the World Monitor Trust --
Series A due to losses sustained during
a period in which the initial month-end
Net Asset Value of the World Monitor Trust
-- Series A is not equaled or exceeded by
a subsequent month-end Net Asset Value of
the World Monitor Trust -- Series A.
"Rate of Return" is calculated daily by
dividing net performance by beginning
equity. The daily returns are then
compounded to arrive at the rate of return
for the month, which is in turn compounded
to arrive at the rate of return for the
year to date.
*As of October 31, 1998.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
2
<PAGE>
PAST PERFORMANCE OF SERIES B
Capsule Performance of World Monitor Trust - Series B
CTA: Eclipse Capital Management, Inc.
Rates of Return
(Computed on a Monthly Basis)
Month 1998
January
February
March
April
May
June (2.22)%
July (3.63)%
August 10.81%
September 4.94%
October 1.18%
November
December
Year to Date 10.87%
Name of Pool: World Monitor Trust -- Series BType of
Pool: Publicly-Offered
Start Date: June 1998
Aggregate subscriptions: $8,764,083*
Current Net Asset Value
per Interest: $110.87*
"Draw-down" means losses experienced by
the World Monitor Trust -- Series
B over a specified period.
Largest monthly draw-down: (3.63)% July 1998
"Largest monthly draw-down" means the
greatest percentage decline in Net
Asset Value due to losses sustained
by the World Monitor Trust -- Series
B from the beginning to the end of a
calendar month.
Largest peak-to-valley
draw-down: (5.77)% June 1998 to July 1998
"Largest peak-to-valley draw-down"
means the greatest cumulative percentage
decline in month-end Net Asset Value of
the World Monitor Trust - Series B due
to losses sustained during a period in which
the initial month-end Net Asset Value of
the World Monitor Trust -- Series B
is not equaled or exceeded by a subsequent
month-end Net Asset Value of the World
Monitor Trust -- Series B.
"Rate of Return" is calculated daily by
dividing net performance by beginning
equity. The daily returns are then
compounded to arrive at the rate of return
for the month, which is in turn compounded
to arrive at the rate of return for the
year to date.
*As of October 31, 1998.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
3
<PAGE>
PAST PERFORMANCE OF SERIES C
Capsule Performance of World Monitor Trust - Series C
CTA: Hyman Beck & Company, Inc.
Rates of Return
(Computed on a Monthly Basis)
Month 1998
January
February
March
April
May
June (3.42)%
July (2.43)%
August 9.29%
September 2.84%
October (0.80)%
November
December
Year to Date 5.05%
Name of Pool: World Monitor Trust - Series C
Type of Pool: Publicly-Offered
Start Date: June 1998
Aggregate subscriptions: $8,944,257*
Current Net Asset Value
per Interest: $105.05*
"Draw-down" means losses experienced by
the World Monitor Trust -- Series C
over a specified period.
Largest monthly draw-down: (3.42)% June 1998.
"Largest monthly draw-down" means the
greatest percentage decline in Net
Asset Value due to losses sustained
by World Monitor Trust -- Series C
from the beginning to the end of a calendar
month.
Largest peak-to-valley
draw-down: (5.77)% June 1998 to July 1998
"Largest peak-to-valley draw-down"
means the greatest cumulative percentage
decline in month-end Net Asset Value of
the World Monitor Trust -- Series C due
to losses sustained during a period in which
the initial month-end Net Asset Value of
the World Monitor Trust -- Series C is
not equaled or exceeded by a subsequent
month-end Net Asset Value of World Monitor
Trust -- Series C.
"Rate of Return" is calculated daily
by dividing net performance by beginning
equity. The daily returns are then
compounded to arrive at the rate of
return for the month, which is in turn
compounded to arrive at the rate of
return for the year to date.
*As of October 31, 1998.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
4
<PAGE>
RISK FACTORS
TRADING RISKS
The following supplements the information found under
this heading in the Prospectus on pages 18 to 20.
Potential Risk to Trading or Reporting of Results
Because of Year 2000 Problems. Many computer systems in use
today cannot recognize the computer code for the year 2000,
but revert to 1900 or some other date. This is commonly
known as the "Year 2000 Problem." The Trust has engaged
third parties to perform primarily all of the services it
needs. Accordingly, the Trust's Year 2000 problems, if any,
are not its own but those that center around the ability of
the Trustee, Managing Owner, Prudential Securities, Trading
Advisors and any other third party with whom the Trust has a
material relationship (individually, a "Service Provider,"
and collectively, the "Service Providers") to address and
correct problems that may cause their systems not to
function as intended as a result of the Year 2000 Problem.
The Trust has received assurances from its Managing Owner,
Prudential Securities and each of its Trading Advisors that
they anticipate being able to continue their operations
without any material adverse impact from the Year 2000
Problem. Although other Service Providers, such as the
Trust's Trustee, have not made similar representations to
the Trust, the Trust has no reason to believe that these
Service Providers will not takes steps necessary to avoid
any material adverse impact on the Trust, though there can
be no assurance that this will be the case. The costs or
consequences of incomplete or untimely resolution of the
Year 2000 Problem by the Service Providers, or by
governments, exchanges, clearing houses, regulators, banks
and other third parties, are unknown to the Trust at this
time, but could have a material adverse impact on the
operations of the Trust. The Managing Owner will promptly
notify the Trust's limited owners in the event it determines
that the Year 2000 Problem will have a material adverse
impact on the Trust's operations.
The Trust has considered various alternatives as a
contingency plan. If the Year 2000 Problems are systemic,
for example, the federal government, the banking system,
exchanges or utilities are materially adversely affected,
there may be no adequate contingency plan for the Trust to
follow other than to suspend operations. If the Year 2000
Problems are related to one or more of the other Service
Providers selected by the Trust, the Trust believes that
each such Service Provider is prepared to address any Year
2000 Problems which arise that could have a material adverse
impact on the Trust's operations.
Effect of the European Monetary Union. The scheduled January
1, 1999 conversion of most European currencies to a single
euro-currency, or market anticipation of, or reaction to,
that conversion or to any nation's withdrawal from the
European Monetary Union, may adversely affect the Trading
Advisors' trading and investing opportunities. The
conversion to a single euro-currency is a very significant
and novel political and economic event and there can be no
certainty about its direct or indirect future effects on the
European currency markets and, in turn, the Trust.
5
<PAGE>
SERIES A
EAGLE AND ITS PRINCIPALS
The following updates and supplements the information found
under this heading in the Prospectus on page 28.
Eagle's main business office is now located at 47 Hulfish
Street, Suite 410, Princeton, New Jersey 08542. In addition
to the positions held by Mr. and Mrs. Sternberg as described
in the Prospectus, each also is a shareholder and a director
of Eagle System Development, Ltd., a Bermuda corporation.
EAGLE'S TRADING SYSTEMS
Eagle-Global Program and Eagle-FX Program Allocations
The following updates the information found under the
heading "Volume of Trading for the Period January 1, 1997
to December 31, 1997" in the Prospectus on page 31.
Set forth below is a bar graph showing the sectors that
are traded by Eagle. Investor funds will be exposed to
these sectors in approximately the percentage allocations
stated. The stated percentages represent the
allocation-to-date for each sector. Actual trading will
change as market conditions and trading opportunities
change, and there is every likelihood that the targeted risk
allocations may vary for Series A during future periods,
although it is anticipated that the focus will remain on the
financial instruments markets.
Foreign Exchange 37.0% < (Represents FX System)
IMM Currencies 13.3%
Financials 36.3%
Stock Indices 1.2%
Grains and Softs 3.7%
Energy Products 4.5%
Metals 4.1%
100.0%
Market Sector Allocation
Eagle Trading Systems, Inc.
(GRAPH)
6
<PAGE>
EAGLE'S PAST PERFORMANCE
Eagle-Global System
The following is a capsule summary of the past performance
for the Eagle-Global System as of September 30, 1998 and
updates the capsule summary found in the Prospectus on pages
32 and 33.
As of September 30, 1998
Name of CTA Eagle Trading Systems, Inc.
Program: Eagle-Global System
Start Date: August 1993 (All Trading for Eagle)
August 1995 (Eagle-Global System)
No. Accounts: 19 (Eagle-Global System)
Aggregate $$:
All Programs: $ 552,484,833 (All Programs excluding Notional)
$ 611,643,923 (All Programs including Notional)
$$ in This Program: $ 251,178,691 (Eagle-Global System Total
Assets excluding Notional)
$ 293,891,709 (Eagle-Global System Total Assets
including Notional)
Largest monthly
draw-down: (14.29)% August 1995
"Largest monthly draw-down" means the
greatest percentage decline in Net Asset Value due
to losses sustained in the Eagle-Global System
from the beginning to the end of a calendar month.
Largest peak-to-
valley draw-down: (27.59)% February 1996 to July 1996
"Largest peak-to-valley draw-down" means the greatest
cumulative percentage decline in month-end Net Asset
Value due to losses sustained in the Eagle-Global System
during a period in which the initial month-end Net
Asset Value is not equaled or exceeded by a
subsequent month-end Net Asset Value.
Closed accounts: Profitable = 3
Unprofitable = 1
CAPSULE A(1B) - EAGLE-GLOBAL SYSTEM MONTHLY/ANNUAL RATES OF RETURN
(Based on Fully Funded Subset)
MONTH 1998 1997 1996 1995
Jan 8.29% 5.05% 8.90%
Feb (0.10) 5.40 (13.14)
Mar 3.89 (11.80) (0.94)
Apr (1.33) 1.94 5.78
May 11.12 (4.23) (10.04)
Jun (1.79) 0.88 1.34
Jul (6.17) 16.95 (12.73)
Aug 20.17 (5.57) 5.14
Sep 6.04 10.72 18.64
Oct (7.33) 27.67 0.55%
Nov 1.05 8.14 2.36
Dec 9.17 (7.71) (2.44)
Annual/
YTD 44.70% 20.23% 25.34% 0.41%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
7
<PAGE>
Eagle-FX System
The following is a capsule summary of the past performance
for the Eagle-FX System as of September 30, 1998 and updates
the capsule summary found in the Prospectus on page 35.
As of September 30, 1998
Name of CTA: Eagle Trading Systems, Inc.
Program: Eagle-FX System
Start Date: August 1993 (All Trading for Eagle)
August 1993 (Eagle-FX System traded exclusively
by Eagle) September 1991 (Trading of Eagle-FX
System under management of Tiverton)
No. Accounts: 13 (Eagle-FX System)
Aggregate $$:
All Programs: $ 552,484,833 (All Programs excluding Notional)
$ 611,643,923 (All Programs including Notional)
$$ in This Program: $ 74,843,401 (Eagle-FX System Total Assets
excluding Notional)
$ 91,289,473 (Eagle-FX System Total Assets
including Notional)
Largest monthly draw-down: (16.13)% August 1994
"Largest monthly draw-down" means the greatest
percentage decline in Net Asset Value due to
losses sustained in the Eagle-FX System from
the beginning to the end of a calendar
month.
Largest peak-to-valley
draw-down: (24.68)% May 1995 to December 1995
"Largest peak-to-valley draw-down" means
the greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained in the Eagle-FX System during a
period in which the initial month-end Net
Asset Value is not equaled or exceeded by a
subsequent month-end Net Asset Value.
Closed accounts: Profitable = 1
Unprofitable = 0
CAPSULE A(2) - EAGLE-FX SYSTEM MONTHLY/ANNUAL RATES OF RETURN
(Based on Fully Funded Subset)
MONTH 1998 1997 1996 1995 1994 1993
Jan (2.34)% 8.69% 10.94% (0.58) (8.62)% (2.51)%
Feb 0.15 10.93 (5.10) 15.48 (6.15) 3.29
Mar (1.08) (0.67) 13.26 17.30 (0.37) (4.47)
Apr (11.97) 4.49 4.75 2.08 1.08 (1.77)
May 3.20 0.32 (3.57) (10.96) (3.65) 2.35
Jun (4.32) (0.93) (1.22) (1.93) 11.48 1.81
Jul (0.15) 15.45 (3.63) (2.16) 4.02 0.23
Aug 1.92 (2.53) (0.92) 1.40 (16.13) 1.23
Sep 0.81 (1.72) 11.75 (0.96) 1.57 2.79
Oct (2.38) 5.99 (0.30) 10.33 (0.86)
Nov (0.61) 2.78 (2.54) (12.92) 1.59
Dec 1.41 2.24 (9.66) 1.09 (3.38)
Annual/YTD (13.72)% 35.34% 41.40% 3.54% (20.16)% (0.08)%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
8
<PAGE>
Eagle's Supplemental Performance Information
Eagle System
The following is a capsule summary of the past performance
for the Eagle System traded by Eagle as of September 30,
1998, a trading strategy not used on behalf of Series A, and
updates the capsule summary found in the Prospectus on page
36.
As of September 30, 1998
Name of CTA: Eagle Trading Systems, Inc.
Program: Eagle System
Start Date: August 1993 (All Trading for Eagle)
August 1993 (Eagle System traded exclusively
by Eagle)
September 1989 (Trading of Eagle System under
management of Tiverton)
No. Accounts: 15 (Eagle System)
Aggregate $$:
All Programs: $ 552,484,833 (All Programs excluding Notional)
$ 611,643,923 (All Programs including Notional)
$$ in This Program: $ 226,462,741 (Eagle System Total Assets
excluding Notional)
$ 226,462,741 (Eagle System Total Assets including
Notional)
Largest monthly
draw-down: (19.42)% February 1996
"Largest monthly draw-down" means the greatest
percentage decline in Net Asset Value due to
losses sustained in the Eagle System from the
beginning to the end of a calendar month.
Largest peak-to-valley
draw-down: (28.09)% February 1996 to July 1996
"Largest peak-to-valley draw-down" means
the greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained in the Eagle System during a period
in which the initial month-end Net Asset Value
is not equaled or exceeded by a subsequent
month-end Net Asset Value.
Closed accounts Profitable = 8
Unprofitable = 1
CAPSULE A(3) -- EAGLE SYSTEM ANNUAL RATES OF RETURN
(Based on Fully Funded Subset)
1998 1997 1996 1995 1994 1993
Annual/YTD 56.99% 26.59% 17.88% 72.74% 29.13% 56.05%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
9
<PAGE>
SERIES B
ECLIPSE CAPITAL AND ITS PRINCIPALS (See page 40 of the Prospectus)
The following updates and supplements the information found
under this heading in the Prospectus on page 40.
The principal business office of Eclipse Capital is now
located at 7700 Bonhomme, Suite 500, St. Louis, Missouri 63105.
Ronald R. Breitigam is no longer Secretary of Eclipse Capital. He will
continue in his position as Vice President, Trading.
James W. Dille, Ph.D. biography is amended to add that from
1987 through 1993 he worked for The Boeing Company (formerly
McDonnell Douglas Corporation) in the Flight Simulation
Training Systems Division.
The following persons have been added as principals of
Eclipse Capital:
James R. Klingler serves as Senior Vice President and
Corporate Secretary of Eclipse Capital, with responsibility
for the areas of administration and corporate management.
Mr. Klingler has a BA in Economics from Vanderbilt
University and a JD from Vanderbilt University School of
Law. He previously worked as an associate with the St.
Louis law firm of Thompson Coburn (formerly Coburn & Croft)
and as a staff attorney with Mercantile Bancorporation, also
in St. Louis. From January 1991 until December 1997, he was
Compliance Counsel and subsequently Associate Vice President
with A.G. Edwards & Sons, Inc. Mr. Klingler joined Eclipse
Capital in January 1998.
Thomas D. Kratky is Senior Vice President -- Investor
Relations and is responsible for Eclipse Capital's investor
services and business development functions. Mr. Kratky has
a BA in mathematics from the University of California,
Berkeley and an MBA from Columbia Business School. He
previously worked as a management consultant with both the
Wyatt Company and the Gartner Company and as a portfolio
manager in the non-traditional funds group at Evaluation
Associates, Inc. From October 1992 to October 1998, he was
employed by Lehman Brothers in various capacities and, upon
leaving Lehman, was Senior Vice President of the firm and
President of Lehman Brothers Futures Asset Management. Mr.
Kratky joined Eclipse Capital in November 1998.
Eric Goodbar is Director of Research with responsibility for
the research, development and maintenance of Eclipse
Capital's trading strategies and programs. Mr. Goodbar has
a BS degree with a dual major in Financial Administration
and Management of Information Systems from the University of
Nevada at Las Vegas and an Executive MBA degree from the
University of Chicago Graduate School of Business. From
August 1984 to April 1995, he was employed by NationsBank
CRT in several different capacities, the last of which was
as Vice President, Financial Engineering. From April 1995
to December 1997, he served as Executive Vice President of
New Century Investment Research and Management, Inc. From
1993-1997, Mr. Goodbar also served as an adjunct faculty
member for the Illinois Institute of Technology. Mr.
Goodbar joined Eclipse Capital in January 1998.
10
<PAGE>
ECLIPSE CAPITAL'S TRADING SYSTEM
Global Monetary Program Allocation
The following updates the information found under this
heading in the Prospectus on page 42.
Set forth below is a bar graph showing the sectors that are
traded by Eclipse Capital. Investor funds will be exposed
to these sectors in approximately the percentage allocation
stated. Actual trading will change as market conditions and
trading opportunities change, and there is every likelihood
that the targeted risk allocations may vary for Series B
during future periods, although it is anticipated that the
focus will remain on the financial instruments markets.
Interest rate instruments 40%
Currencies 25%
Stock Indices 15%
Precious & Base Metals 10%
Energy Products 10%
(GRAPH)
11
<PAGE>
ECLIPSE CAPITAL'S PAST PERFORMANCE
Global Monetary Program
The following is a capsule summary of the past performance
for the Eclipse Capital Global Monetary Program as of
September 30, 1998 and updates the capsule summary found in
the Prospectus on pages 43 and 44.
As of September 30, 1998
Name of CTA: Eclipse Capital Management, Inc.
Program: Global Monetary Program
Start Date: April 1986 (All trading by Eclipse Capital)
August 1990 (Eclipse Capital Global Monetary
Program)
No. Accounts: 20
Aggregate $$:
All Programs $333,874,254 (All Programs excluding Notional)
$337,819,254 (All Programs including Notional)
$$ in this Program: $331,777,478 (Global Monetary Program
excluding Notional)
$335,722,470 (Global Monetary Program including
Notional)
Largest monthly draw-down: (14.62)% July 1994
"Largest monthly draw-down" means the greatest
decline in month-end Net Asset Value due to
losses sustained by a global monetary program
on a composite basis or an individual account
for any particular month.
Largest peak-to-valley
draw-down: (26.97)% March 1994 to September 1994
"Largest peak-to-valley draw-down" means the
greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained by a global monetary program on a
composite basis or an individual account during
any period in which the initial month-end
Net Asset Value is not equaled or exceeded
by a subsequent month-end asset value.
Closed accounts: Profitable = 15
Unprofitable = 9
CAPSULE B(1) - ECLIPSE CAPITAL GLOBAL MONETARY PROGRAM
MONTHLY/ANNUAL RATES OF RETURN
MONTH 1998 1997 1996 1995 1994 1993
Jan 1.66% 2.07% 5.45% (2.28)% 1.34% 4.23%
Feb (3.12) (0.41) (0.07) 1.19 3.00 9.34
Mar (0.63) 1.67 (0.30) 4.52 6.09 (2.11)
Apr (10.67) (4.93) 5.58 0.84 (3.43) 1.42
May 2.81 4.01 1.96 8.09 (2.91) (1.02)
Jun (2.19) 0.34 0.11 (2.34) 0.28 3.03
Jul (3.46) 8.80 0.58 1.04 (11.70) 3.09
Aug 13.15 (2.21) 3.04 6.80 (5.12) 0.81
Sep 6.02 5.00 2.77 (0.57) (1.42) 3.61
Oct (0.78) 3.51 0.34 0.90 2.06
Nov (1.63) 7.03 2.16 4.50 (0.03)
Dec 3.66 (2.19) (0.64) (2.24) 2.84
Annual/
YTD 2.01% 15.93% 30.88% 20.21% (11.37)% 30.37%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
12
<PAGE>
Eclipse Capital's Supplemental Performance Information
Global Yield Program
The following is a capsule summary of the past performance
for the Global Yield Program traded by Eclipse Capital as of
September 30, 1998, a trading strategy not used on behalf of
Series B, and updates the capsule summary found in the
Prospectus on page 45.
As of September 30, 1998
Name of CTA: Eclipse Capital Management, Inc.
Program: Global Yield Program
Start Date: April 1986 (All trading by Eclipse Capital)
April 1992 (Eclipse Capital Global Yield
Program)
No. Accounts: 1
Aggregate $$:
All Programs: $333,874,254 (All Programs excluding Notional)
$337,819,254 (All Programs including Notional)
$$ in this Program: $2,096,776 (Global Yield Program excluding
Notional)
Largest monthly draw-down: (14.41)% July 1994
"Largest monthly draw-down" means the
greatest decline in month-end Net Asset Value
due to losses sustained by a global yield
program on a composite basis or an individual
account for any particular month.
Largest peak-to valley
draw-down: (26.10)% May 1994 to January 1995
"Largest peak-to-valley draw-down" means the
greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained by a global yield program on a
composite basis or an individual account
during any period in which the initial
month-end Net Asset Value is not
equaled or exceeded by a subsequent month-end
asset value.
Closed accounts: Profitable = 6
Unprofitable = 7
CAPSULE B(2) -- ECLIPSE GLOBAL YIELD PROGRAM ANNUAL RATES OF RETURN
1998 1997 1996 1995 1994 1993
Annual/YTD (1.40)% 7.26% 15.21% 14.02% 0.02% 32.40%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
13
<PAGE>
SERIES C
HB & CO.'S TRADING SYSTEMS
HB & Co. Asset Allocation Portfolio
The following updates the information found under the
heading "Volume of Trading for HB &Co. contracts and
Markets" in the Prospectus on page 56.
Set forth below is a bar graph showing the sectors that are
traded by HB & Co. Investor funds will be exposed to these
sectors in approximately the percentage allocation stated.
Actual allocations will change as market conditions and
trading opportunities change, and there is every likelihood
that the targeted risk allocations may vary for Series C
during future periods, although it is anticipated that the
focus will remain on the financial instruments markets.
Financials 23%
Stock Indices 12%
Metals 9%
Meats 1%
Grains and Softs 5%
Currencies 44%
Energy Products 6%
100%
(GRAPH)
14
<PAGE>
HB & CO.'S PAST PERFORMANCE
Asset Allocation Portfolio
The following is a capsule summary of the past performance
for the Asset Allocation Portfolio as of September 30, 1998
and updates the capsule summary found in the Prospectus on
pages 57 and 58.
As of September 30, 1998
Name of CTA: HB & Co.
Program: Asset Allocation Portfolio1
Start Date: March 1991 (All trading by HB & Co.)
April 1992 (Asset Allocation Program)
No. of Accounts open: 4
Aggregate $$:
All programs: $ 275,910,383 (All Programs excluding Notional)
$ 338,219,448 (All Programs including Notional)
$$ in this Program: $ 22,304,752 (Asset Allocation Portfolio
excluding Notional)
$ 46,849,296 (Asset Allocation Portfolio
including Notional)
Largest monthly draw-down: (9.38)% February 1996
"Largest monthly draw-down" means the
greatest decline in month-end Net Asset
Value due to losses sustained by a
trading portfolio on a composite basis or
an individual account for any particular
month.
Largest peak-to-valley
draw-down: (18.30)% August 1993 to January 1995
"Largest peak-to-valley draw-down" means
the greatest cumulative percentage decline
in month-end Net Asset Value due to losses
sustained by a trading portfolio on a
composite basis or an individual account
during any period in which the initial
month-end Net Asset Value is not
equaled or exceeded by a subsequent
month-end Net Asset Value.
Closed accounts: Profitable = 3
Unprofitable = 3
______________________________
1. The Asset Allocation Portfolio represents accounts
trading a combination of each of the Global, FX, Diversified
and/or Short-Term Portfolios. Although Series C Assets will
not be traded pursuant to the foregoing program, the Asset
Allocation Portfolio employed on behalf of the Series C
Assets is traded at a higher level of leverage (1.5 times).
HB & Co. manages only one Asset Allocation Portfolio
account, the Series C account, at one and one-half times
leverage.
CAPSULE C(1) - ASSET ALLOCATION PORTFOLIO
MONTHLY/ANNUAL RATES OF RETURN
MONTH 1998 1997 1996 1995 1994 1993
Jan (0.87)% 7.39% 2.09% (9.02)% (0.59)% (3.76)%
Feb (4.19) 5.11 (9.22) 12.51 (5.96) 7.50
Mar (0.22) 1.48 0.74 26.39 8.30 0.66
Apr (5.27) (0.60) 6.04 3.79 (5.05) 3.11
May 1.66 0.81 (2.62) 1.19 2.69 2.89
Jun (0.93) 1.52 0.97 0.40 3.38 (1.12)
Jul (0.56) 4.70 (0.51) (2.60) (4.03) 7.72
Aug 8.25 (1.64) (4.53) 0.42 (2.97) (1.30)
Sep 2.50 2.11 0.35 (2.07) (0.02) 0.52
Oct (2.64) 11.94 (0.63) 5.52 (2.64)
Nov (0.87) 4.65 (0.62) (1.42) (0.55)
Dec 2.24 (6.45) 3.34 (0.13) 4.90
Annual/YTD (0.24)% 20.91% 1.68% 33.35% 1.29% 18.58%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
15
<PAGE>
Global Portfolio
The following is a capsule summary of the past performance
for the Global Portfolio as of September 30, 1998 and
updates the capsule summary in the Prospectus on page 59.
As of September 30, 1998
Name of CTA: HB & Co.
Program: Global Portfolio
Start Date: March 1991 (All trading by HB & Co.)
April 1991 (Global Portfolio)
No. Accounts: 16
Aggregate $$:
All Programs: $ 275,910,383 (All Programs excluding Notional)
$ 338,219,448 (All Programs including Notional)
$$ in this Program: $ 223,830,189 (Global Program excluding
Notional)
$ 240,773,967 (Global Program including
Notional)
Largest monthly draw-down: (12.77)% December 1996
"Largest monthly draw-down" means the greatest
decline in month-end Net Asset Value due to
losses sustained by a global portfolio on a
composite basis or an individual account for
any particular month.
Largest peak-to-valley
draw-down: (19.38)% July 1994 to February 1995
"Largest peak-to-valley draw-down" means the
greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained by a global portfolio on a composite
basis or an individual account during any
period in which the initial month-end Net
Asset Value is not equaled or exceeded by a
subsequent month-end Net Asset Value.
Closed accounts: Profitable = 30
Unprofitable = 16
CAPSULE C(2) - GLOBAL PORTFOLIO ANNUAL RATES OF RETURN
1998 1997 1996 1995 1994 1993
Annual/YTD 15.44% 24.38% 10.82% 29.12% 3.81% 14.63%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
16
<PAGE>
FX Portfolio
The following is a capsule summary of the past performance
for the FX Portfolio as of September 30, 1998 and updates
the capsule summary in the Prospectus on page 60.
As of September 30, 1998
Name of CTA: HB & Co.
Program: FX Portfolio
Start Date: March 1991 (All trading by HB & Co.)
March 1991 (FX Portfolio)
No. of Accounts: 5
Aggregate $$:
All Programs: $275,910,383 (All Programs excluding Notional)
$338,219,448 (All Programs including Notional)
$$ in this Program: $7,578,656 (FX Portfolio excluding Notional)
$18,862,109 (FX Portfolio including Notional)
Largest monthly draw-down: (18.72)% November 1994
"Largest monthly draw-down" means the
greatest decline in month-end Net Asset
Value due to losses sustained by a
foreign exchange portfolio on a composite
basis or an individual account for any
particular month.
Largest peak-to-valley draw-down: (52.49)% August 1993 to January 1995.
"Largest peak-to-valley draw-down" means
the greatest cumulative percentage decline
in month-end Net Asset Value due to losses
sustained by a foreign exchange portfolio on
a composite basis or an individual account
during any period in which the initial
month-end Net Asset Value is not equaled
or exceeded by a subsequent month-end Net
Asset Value.
Closed accounts: Profitable = 8
Unprofitable = 33
CAPSULE C(3) FX PORTFOLIO ANNUAL RATES OF RETURN
1998 1997 1996 1995 1994 1993
Annual/YTD (5.53)% 29.30% 6.65% 40.58% (20.63)% 0.86%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
17
<PAGE>
Diversified Portfolio
The following is a capsule summary of the past performance
for the Diversified Portfolio as of September 30, 1998 and
updates the capsule summary in the Prospectus on page 61.
As of September 30, 1998
Name of CTA: HB & Co.
Program: Diversified Portfolio
Start Date: March 1991 (All trading by HB & Co.)
March 1991 (Diversified Portfolio)
No. of Accounts: 5
Aggregate $$:
All Programs: $275,910,383 (All Programs excluding Notional)
$338,219,448 (All Programs including Notional)
$$ in this Program: $988,028 (Diversified Portfolio excluding
Notional)
$3,933,127 (Diversified Portfolio including
Notional)
Largest monthly draw-down: (15.90)% February 1994
"Largest monthly draw-down" means the greatest
decline in month-end Net Asset Value due to
losses sustained by a diversified portfolio on
a composite basis or an individual account
for any particular month.
Largest peak-to-valley
draw-down: (30.42)% August 1993 to December 1995
"Largest peak-to-valley draw-down" means the
greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained by a diversified portfolio on a
composite basis or an individual account
during any period in which the initial
month-end Net Asset Value is not equaled
or exceeded by a subsequent month-end Net
Asset Value.
Closed accounts: Profitable = 16
Unprofitable = 26
CAPSULE C(4) - DIVERSIFIED PORTFOLIO ANNUAL RATES OF RETURN
1998 1997 1996 1995 1994 1993
Annual/YTD 6.76% 11.88% (8.33)% (4.14)% (7.07)% 13.96%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
18
<PAGE>
Short-Term Select Portfolio
The following is a capsule summary of the past performance
for the Short Term Select Portfolio as of September 30,
1998, and updates the capsule summary in the Prospectus on
page 62.
As of September 30, 1998
Name of CTA: HB & Co.
Program: Short-Term Select Portfolio
Start Date: March 1991 (All trading by HB & Co.)
September 1997 (Short-Term Select Portfolio)
No. Accounts: 6
Aggregate $$:
All Programs: $275,910,383 (All Programs excluding Notional)
$338,219,448 (All Programs including Notional)
$$ in this Program: $17,299,452 (Short-Term Select excluding
Notional)
$33,847,432 (Short-Term Select including
Notional)
Largest monthly draw-down: (10.15%) February 1998
"Largest monthly draw-down" means the greatest
decline in month-end Net Asset Value due to
losses sustained by a short-term select
portfolio on a composite basis or an
individual account for any particular month.
Largest peak-to-valley
draw-down: (20.20%) February 1998 to May 1998
"Largest peak-to-valley draw-down" means the
greatest cumulative percentage decline in
month-end Net Asset Value due to losses
sustained by a short-term select portfolio on
a composite basis or an individual account
during any period in which the initial
month-end Net Asset Value is not
equaled or exceeded by a subsequent month-end
Net Asset Value.
Closed accounts: Profitable = 0
Unprofitable = 3
CAPSULE C(5) - SHORT-TERM SELECT PORTFOLIO ANNUAL RATES OF RETURN
1998 1997
Annual/YTD (8.94)% 0.73%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
19
<PAGE>
HB & Co.'s Supplemental Performance Information
Short-Term Original Portfolio
The following is a capsule summary of the past performance
of the Short-Term Original Portfolio traded by HB & Co. as
of September 30, 1998, a trading strategy not used on behalf
of Series C, and updates the capsule summary found in the
Prospectus on page 63.
As of September 30 1998
Name of CTA: HB & Co.
Program: Short-Term Original Portfolio
Start Date: March 1991 (All trading by HB & Co.)
April 1996 (Short-Term Original Portfolio)
No. Accounts: 7
Aggregate $$:
All Programs: $275,910,383 (All Programs excluding Notional)
$338,219,448 (All Programs including Notional)
$$ in this Program: $26,214,057 (Short-Term Original excluding
Notional)
$40,802,813 (Short-Term Original including
Notional)
Largest monthly draw-down: (9.34)% April 1998
"Largest monthly draw-down" means the greatest
decline in month-end Net Asset Value due to
losses sustained by a short-term original
portfolio on a composite basis or
an individual account for any particular
month.
Largest peak-to-valley
draw-down: (15.69)% October 1997 to May 1998
"Largest peak-to-valley draw-down" means
the greatest cumulative percentage decline
in month-end Net Asset Value due to losses
sustained by a short-term original portfolio
on a composite basis or an individual
account during any period in which the
initial month-end Net Asset Value is not
equaled or exceeded by a subsequent month-end
Net Asset Value.
Closed accounts: Profitable = 11
Unprofitable = 3
CAPSULE C(6) - SHORT-TERM ORIGINAL PORTFOLIO ANNUAL RATES OF RETURN
1998 1997 1996
Annual/YTD (5.41)% 33.30% 0.58%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
20
<PAGE>
DESCRIPTION OF THE TRUST, TRUSTEE,
MANAGING OWNER AND AFFILIATES
Directors and Officers of the Managing Owner
The following supplements information found under this
heading in the Prospectus on pages 70 and71.
Mr. Joseph A. Filicetti, born 1962, has been a Vice
President of the Managing Owner since October 1998 and also
has held such positions with Seaport since such date. Mr.
Filicetti is Vice President of Prudential Securities and
Director of Sales and Marketing in the Managed Futures
Department. Prior to joining Prudential Securities in
September 1998, he was with Rotella Capital Management as
the Director of Sales and Marketing from September 1996
through September 1998 and Merrill Lynch from July 1992
through August 1996 trading US Government Bonds as a market
maker.
Past Performance of Other Pools Sponsored by the Managing
Owner and its Affiliate
The following is a capsule summary of the past
performance information found under this heading in the
Prospectus on pages 72 and 73. PAST PERFORMANCE IS NOT
NECESSARILY INDICATIVE OF FUTURE RESULTS
21
<PAGE>
<TABLE>
CAPSULE D
CAPSULE PERFORMANCE OF OTHER POOLS OPERATED BY PRUDENTIAL SECURITIES FUTURES MANAGEMENT INC. AND AFFILIATE [a]
(SEE ACCOMPANYING NOTES)
<CAPTION>
WORST
WORST PEAK
MONTHLY TO
AGGREGATE CURRENT PERCENT VALLEY
TYPE INCEPTION OF SUBSCRIPTIONS TOTAL NAV DRAW- DRAW-
NAME OF POOL OF POOL TRADING ($ x 1,000) ($ x 1,000) DOWN [b] DOWN [c]
<S> <C> <C> <C> <C> <C> <C>
PRUDENTIAL-BACHE FUTURES
GROWTH FUND, L.P.[d] (PBFG) 3, 5, 6, 8, 10 3/88 24,961 ---- -14.38% -24.48%
10/89 12/88 - 1/93
PRUDENTIAL-BACHE DIVERSIFIED
FUTURES FUND L.P. (PBDFF) 3, 5, 6, 8, 10 10/88 29,747 18,096 -18.37% -36.63%
1/92 1/92 - 5/92
PRUDENTIAL-BACHE CAPITAL RETURN
FUTURES FUND L.P. (PBCRFF) 1a, 3, 5, 7, 8, 10 5/89 137,705 15,821 -5.26% -24.43%
11/94 9/93 - 1/95
PRUDENTIAL-BACHE CAPITAL
RETURN FUTURES FUND 2 L.P. (PBCRFF2) 1a, 3, 5, 7, 8, 9 10/89 100,000 25,155 -11.36% -24.24%
1/92 1/92 - 5/92
PRUDENTIAL-BACHE CAPITAL
RETURN FUTURES FUND 3 L.P. (PBCRFF3) 1a, 3, 5, 7, 8, 10 5/90 64,863 14,285 -11.77% -17.84%
4/98 9/90 - 6/91
PRUDENTIAL-BACHE OPTIMAX
FUND L.P. - OPTIMAX (PBOFF) 3, 5, 7, 8, 10, 11 4/96 69,603 16,789 -6.39% -11.32%
8/97 5/96-8/96
PRUDENTIAL-BACHE OPTIMAX FUND L.P. -
A (PBOFF) 1, 3, 5, 7, 10, 11 2/91 63,356 ---- -6.00% -10.72%
1/92 8/93 - 2/95
PRUDENTIAL-BACHE
OPTIMAX FUND L.P. - B (PBOFF) 3, 5, 7, 8, 10, 11 2/91 6,247 ---- -9.90% -20.26%
1/92 8/93 - 2/95
PRUDENTIAL SECURITIES OPTIMAX
FUND 2 L.P. -- OPTIMAX 2 [g] (PBOFF2) 3, 5, 7, 8, 9, 12 4/97 17,416 ---- -9.08% -16.58%
4/98 8/97-5/98
PRUDENTIAL SECURITIES OPTIMAX FUND 2 L.P.
- - A (PBOFF2) 1, 3, 5, 7, 9, 12 1/92 15,197 ---- -5.82% -13.53%
9/93 9/93 - 1/95
PRUDENTIAL SECURITIES OPTIMAX
FUND 2 L.P. - B (PBOFF2) 3, 5, 7, 8, 9, 12 1/92 2,219 ---- -9.49% -20.94%
9/93 6/95-7/96
PRUDENTIAL SECURITIES FINANCIAL
FUTURES FUND L.P. [e] (PSFNF) 2, 4, 6, 8, 9 1/93 3,557 ---- -8.39% -40.23%
11/94 8/93 - 1/95
PRUDENTIAL SECURITIES AGGRESSIVE
GROWTH FUND L.P. (PSAGF) 3, 5a, 7, 8, 9 8/93 20,335 5,831 -9.71% -32.68%
9/93 8/93 - 1/95
DIVERSIFIED FUTURES TRUST I (DFT) 3, 5a, 6, 8, 9 1/95 65,908 61,583 -5.89% -12.88%
2/96 1/98 - 9/98
SIGNET PARTNERS II, LP [f] (SPLP2) 2, 4, 7, 8, 9 2/96 1,531 ---- -6.37% -8.41%
8/97 8/97 - 1/98
PRUDENTIAL SECURITIES
STRATEGIC TRUST [h] (PRUST) 3, 5a, 6, 8, 9 5/96 63,403 46,872 -15.84% -33.98%
4/98 8/97-7/98
DIVERSIFIED FUTURES TRUST II (DFTII) 2, 5, 6, 8, 9 3/97 44,503 39,222 -4.37% -11.77%
4/98 1/98 - 7/98
PRUDENTIAL-BACHE INTERNATIONAL FUTURES
FUND A PLC (PBIFA) 2, 4, 6, 9, 13 6/96 30,365 13,551 -15.39% -31.52%
4/98 8/97-7/98
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND C PLC (PBIFC) 2, 4, 6, 9, 13 6/96 23,639 7,214 -6.82% -20.08%
8/97 12/96-4/97
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND B PLC (PBIFB) 2, 4, 6, 9, 13 7/96 83,737 64,871 -8.84% -19.97%
5/97 1/98-7/98
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND D PLC (PBIFD) 2, 4, 7, 9, 13 10/96 19,029 13,911 -7.80% -10.31%
4/98 2/98-4/98
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND E PLC (PBIFE) 2, 4, 6, 9, 13 1/97 14,465 8,983 -9.41% -9.41%
8/97 8/97
PRUDENTIAL-BACHE INTERNATIONAL FUTURES
FUND F PLC (PBIFF) 2, 4, 6, 9, 13 9/97 9,893 8,868 -9.50% -11.09%
10/97 10/97-11/97
PRUDENTIAL SECURITIES FOREIGN
FINANCIALS FUND L.P. (PSFFF) 2, 4, 6, 8, 9 1/93 4,198 1,718 -17.68% -25.96%
9/93 9/93-1/94
<CAPTION>
CAPSULE D
CAPSULE PERFORMANCE OF OTHER POOLS OPERATED BY PRUDENTIAL SECURITIES FUTURES MANAGEMENT INC. AND AFFILIATE [a]
(SEE ACCOMPANYING NOTES)
ANNUAL RATE OF RETURN
(COMPUTED ON A COMPOUNDED MONTHLY BASIS)
YEAR
TO DATE
1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
PRUDENTIAL-BACHE FUTURES
GROWTH FUND, L.P.[d] (PBFG) 19.73% 1.57% -9.54% -- -- --
PRUDENTIAL-BACHE DIVERSIFIED
FUTURES FUND L.P. (PBDFF) 31.49% -10.05% 33.95% 24.81% 9.03% 2.89%
PRUDENTIAL-BACHE CAPITAL RETURN
FUTURES FUND L.P. (PBCRFF) 12.32% -21.43% 23.97% 8.58% 7.93% 3.32%
PRUDENTIAL-BACHE CAPITAL
RETURN FUTURES FUND 2 L.P.
(PBCRFF2) 21.33% -8.08% 27.26% 19.10% 11.40% -5.35%
PRUDENTIAL-BACHE CAPITAL
RETURN FUTURES FUND 3 L.P.
(PBCRFF3) 8.84% 10.41% 16.64% 16.79% -7.79% -4.40%
PRUDENTIAL-BACHE OPTIMAX
FUND L.P. - OPTIMAX (PBOFF) --- --- --- 11.68% 17.49% 19.49%
PRUDENTIAL-BACHE OPTIMAX FUND L.P. -
A (PBOFF) 10.88% -6.42% 7.18% -0.41% --- ---
PRUDENTIAL-BACHE
OPTIMAX FUND L.P. - B (PBOFF) 15.34% -10.66% 7.59% -1.59% --- ---
PRUDENTIAL SECURITIES OPTIMAX
FUND 2 L.P. -- OPTIMAX 2 [g]
(PBOFF2) --- --- --- ---- -3.67% -9.97%
PRUDENTIAL SECURITIES OPTIMAX
FUND 2 L.P. - A (PBOFF2) 4.43% -5.51% 13.93% 3.88% 0.86% ---
PRUDENTIAL SECURITIES OPTIMAX
FUND 2 L.P. - B (PBOFF2) 4.36% -6.57% 18.44% 5.24% 0.68% ---
PRUDENTIAL SECURITIES FINANCIAL
FUTURES FUND L.P. [e] (PSFNF) 0.81% -24.46% -2.05% --- --- ---
PRUDENTIAL SECURITIES AGGRESSIVE
GROWTH FUND L.P. (PSAGF) -18.20% -13.51% 29.51% 7.89% -2.31% 12.26%
DIVERSIFIED FUTURES TRUST I
(DFT) --- --- 42.65% 23.49% 8.82% 4.98%
SIGNET PARTNERS II, LP [f]
(SPLP2) --- --- --- 9.70% 6.10% -0.70%
PRUDENTIAL SECURITIES
STRATEGIC TRUST [h] (PRUST) --- --- --- 3.47% -0.49% 17.40%
DIVERSIFIED FUTURES TRUST II
(DFTII) --- --- --- --- 6.26% 6.38%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND A PLC (PBIFA) --- --- --- 12.30% -0.36% 37.62%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND C PLC (PBIFC) --- --- --- 22.70% -3.59% 24.68%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND B PLC (PBIFB) --- --- --- 28.50% 13.77% 3.69%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND D PLC (PBIFD) --- --- --- -1.10% 14.36% 29.27%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND E PLC (PBIFE) --- --- --- --- 2.20% 10.86%
PRUDENTIAL-BACHE INTERNATIONAL
FUTURES FUND F PLC (PBIFF) --- --- --- --- -4.60% 42.77%
PRUDENTIAL SECURITIES FOREIGN
FINANCIALS FUND L.P. (PSFFF) 2.16% 16.01% 20.38% 6.65% -1.35% 26.20%
</TABLE>
22
<PAGE>
Key to type of pool
1 - Principal-protected pool currently
1a- Principal-protected pool initially, but not currently
2 - Privately offered pool
3 - Publicly offered pool
4 - Open ended pool
5 - Closed ended pool
5a- Initially open ended, currently closed ended
6 - Single advisor pool
7 - More than one advisor
8 - Non-principal protected pool
9 - CPO is Prudential Securities Futures Management Inc.
10- CPO is Seaport Futures Management, Inc.
Notes:
[a] All performance is presented as of October 1998.
[b] "Worst monthly percent draw-down" means greatest percentage decline
in Net Asset Value due to losses sustained by a pool, account or other trading
program from the beginning to the end of a calendar month.
[c] "Worst peak to valley draw-down" means greatest cumulative percentage
decline in month-end Net Asset Value due to losses sustained by a pool,
account or other trading program during a period in which the initial
month-end Net Asset Value is not equaled or exceeded by a subsequent month-end
Net Asset Value.
"Draw-down" means losses experienced by the pool over a specified period.
[d] Liquidated February 1995.
[e] Liquidated December 1995.
[f] Liquidated April 1998.
[g] Liquidated May 1998.
[h] Name change from Willowbridge Strategic Trust to Prudential Securities
Strategic Trust August 1998
23
<PAGE>
Prudential Securities Litigation and Settlements
The following supplements the information found under
this heading in the Prospectus on pages 75 to 78.
Stemming from final settlement agreements and consent orders
in a United States District Court for the Southern District
of Florida, on December 10, 1996, the Department of Labor
(DOL) issued a final order imposing a statutory civil
penalty against Prudential Securities in the amount of
$61,250. The DOL assessed the above referenced automatic
penalty under ERISA section 502(1) based upon allegations
that Prudential Securities acted as a fiduciary under ERISA
with respect to the Metacor, Inc. Profit Sharing and
Retirement Savings Plan and knowingly facilitated certain
transfers of funds out of the Plan's account to a corporate
account that Metacor maintained in one or more banks.
Prudential Securities neither admitted nor denied the DOL's
allegations.
FEDERAL INCOME TAX CONSEQUENCES
Gains and Losses from Commodity Trades
The following updates the information found under this
heading in the Prospectus on page 126.
Retroactive to January 1, 1998, the concept of mid-term
capital gains and losses has been eliminated. Mid-term
capital gains and losses referred to the gains or losses
from the sale of a commodity if held for more than 12 months
and less than 18 months. Accordingly, in general, any gains
or losses realized by a Series from its transactions, if
any, in commodity futures and forward contracts should be
treated as long-term capital gains and losses if held from
more than 12 months or as short-term capital gains and
losses if held for 12 months or less.
Under current law, a tax rate of 39.6% applies to ordinary
income and short-term capital gains of non-corporate
taxpayers, whereas a top tax rate of 20% applies to
long-term capital gain (i.e., gain realized with respect to
property held for more than 12 months).
24
