<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 24, 1999
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______________________ to ______________________
Commission file number: 0-25787
WORLD MONITOR TRUST--SERIES B
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3985041
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One New York Plaza, 13th Floor, New York, New York
10292
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
Indicate by check CK 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 _CK_ No __
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
WORLD MONITOR TRUST--SERIES B
(a Delaware Business Trust)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
September 24, December 31,
1999 1998
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $23,355,210 $11,239,221
Net unrealized gain on open commodity positions 273,712 318,838
------------- ------------
Net equity 23,628,922 11,558,059
Accrued interest receivable 80,647 --
------------- ------------
Total assets $23,709,569 $11,558,059
------------- ------------
------------- ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Commissions payable $ 132,981 $ 76,364
Incentive fees payable 114,735 60,812
Management fees payable 35,833 20,626
Redemptions payable 2,190 --
------------- ------------
Total liabilities 285,739 157,802
------------- ------------
Commitments
Trust capital
Limited interests (180,589.445 and 100,451.891 interests
outstanding) 23,141,910 11,249,078
General interests (2,200 and 1,350 interests outstanding) 281,920 151,179
------------- ------------
Total trust capital 23,423,830 11,400,257
------------- ------------
Total liabilities and trust capital $23,709,569 $11,558,059
------------- ------------
------------- ------------
Net asset value per limited and general interest ('Interests') $ 128.15 $ 111.98
------------- ------------
------------- ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
2
<PAGE>
WORLD MONITOR TRUST--SERIES B
(a Delaware Business Trust)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the period from
For the period from June 10, 1998 For the period from For the period from
January 1, 1999 (commencement of June 26, 1999 June 27, 1998
to operations) to to to
September 24, 1999 September 25, 1998 September 24, 1999 September 25, 1998
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain on commodity
transactions $ 3,606,293 $ 515,257 $ 1,443,114 $ 618,032
Change in net unrealized gain on
open commodity positions (45,126) 394,047 (338,688) 342,808
Interest income 630,083 121,836 267,396 106,875
------------------- -------------------- ------------------- -------------------
4,191,250 1,031,140 1,371,822 1,067,715
------------------- -------------------- ------------------- -------------------
EXPENSES
Commissions 1,010,408 167,203 421,677 146,152
Management fees 261,719 43,256 109,076 37,824
Incentive fees 457,852 139,784 114,735 139,784
------------------- -------------------- ------------------- -------------------
1,729,979 350,243 645,488 323,760
------------------- -------------------- ------------------- -------------------
Net income $ 2,461,271 $ 680,897 $ 726,334 $ 743,955
------------------- -------------------- ------------------- -------------------
------------------- -------------------- ------------------- -------------------
ALLOCATION OF NET INCOME
Limited interests $ 2,433,552 $ 672,526 $ 719,052 $ 734,647
------------------- -------------------- ------------------- -------------------
------------------- -------------------- ------------------- -------------------
General interests $ 27,719 $ 8,371 $ 7,282 $ 9,308
------------------- -------------------- ------------------- -------------------
------------------- -------------------- ------------------- -------------------
NET INCOME PER WEIGHTED AVERAGE
LIMITED AND GENERAL INTEREST
Net income per weighted average
limited and general interest $ 16.85 $ 9.46 $ 4.23 $ 10.04
------------------- -------------------- ------------------- -------------------
------------------- -------------------- ------------------- -------------------
Weighted average number of limited
and general interests outstanding 146,079 71,963 171,529 74,088
------------------- -------------------- ------------------- -------------------
------------------- -------------------- ------------------- -------------------
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN TRUST CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GENERAL
INTERESTS INTERESTS INTERESTS TOTAL
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Trust capital--December 31, 1998 101,801.891 $11,249,078 $151,179 $11,400,257
Contributions 90,678.508 10,640,638 103,022 10,743,660
Net income -- 2,433,552 27,719 2,461,271
Redemptions (9,690.954) (1,181,358) -- (1,181,358)
------------ ----------- --------- -----------
Trust capital--September 24, 1999 182,789.445 $23,141,910 $281,920 $23,423,830
------------ ----------- --------- -----------
------------ ----------- --------- -----------
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE>
WORLD MONITOR TRUST--SERIES B
(a Delaware Business Trust)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 24, 1999
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of World Monitor Trust--Series B ('Series B') as of September 24, 1999
and the results of its operations for the periods from January 1, 1999 to
September 24, 1999 ('Year-To-Date 1999'), June 10, 1998 (commencement of
operations) to September 25, 1998 ('Year-To-Date 1998'), June 26, 1999 to
September 24, 1999 ('Third Quarter 1999') and June 27, 1998 to September 25,
1998 ('Third Quarter 1998'). However, the operating results for the interim
periods may not be indicative of the results expected for a full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements be
read in conjunction with the financial statements and notes thereto included in
Series B's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1998 (the 'Annual Report').
B. Related Parties
The managing owner of Series B is Prudential Securities Futures Management
Inc. (the 'Managing Owner'), a wholly owned subsidiary of Prudential Securities
Incorporated ('PSI'), which, in turn, is a wholly owned subsidiary of Prudential
Securities Group Inc. The Managing Owner or its affiliates perform services for
Series B which include but are not limited to: brokerage services, accounting
and financial management, registrar, transfer and assignment functions, investor
communications, printing and other administrative services. Except for costs
related to brokerage services, PSI or its affiliates pay the costs of these
services in addition to costs of organizing Series B and offering its Interests
as well as the routine operational, administrative, legal and auditing fees. As
described in the Annual Report, all commissions for brokerage services are paid
to PSI.
All of the proceeds of the offering of Series B are received in the name of
Series B and are deposited in trading or cash accounts at PSI, Series B's
commodity broker. Series B's assets are maintained either with PSI or, for
margin purposes, with the various exchanges on which Series B is permitted to
trade. PSI credits Series B monthly with 100% of the interest it earns on the
average net assets in Series B's accounts.
Series B, acting through its trading advisor, may execute over-the-counter,
spot, forward and/or option foreign exchange transactions with PSI. PSI then
engages in back-to-back trading with an affiliate, Prudential-Bache Global
Markets Inc. ('PBGM'). PBGM attempts to earn a profit on such transactions. PBGM
keeps its prices on foreign currency competitive with other interbank currency
trading desks. All over-the-counter currency transactions are conducted between
PSI and Series B pursuant to a line of credit. PSI may require that collateral
be posted against the marked-to-market positions of Series B.
As of September 24, 1999, a non-U.S. affiliate of the Managing Owner owns
101.245 limited interests of Series B.
C. Credit and Market Risk
Since Series B's business is to trade futures, forward (including foreign
exchange transactions) and options contracts, its capital is at risk due to
changes in the value of these contracts (market risk) or the inability of
counterparties to perform under the terms of the contracts (credit risk).
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the contracts (or commodities
underlying the contracts) frequently result in changes in unrealized gain (loss)
on open commodity positions reflected in the statements of financial condition.
Series B's exposure to market risk is influenced by a number of factors
including the relationships among the contracts held by Series B as well as the
liquidity of the markets in which the contracts are traded.
4
<PAGE>
Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain limitations) of the members of the
exchanges is pledged to support the financial integrity of the exchange. On the
other hand, Series B must rely solely on the credit of its broker (PSI) with
respect to forward transactions. Series B presents unrealized gains and losses
on open forward positions, if any, as a net amount in the statements of
financial condition because it has a master netting agreement with PSI.
The Managing Owner attempts to minimize both credit and market risks by
requiring Series B and its trading advisor to abide by various trading
limitations and policies. The Managing Owner monitors compliance with these
trading limitations and policies which include, but are not limited to:
executing and clearing all trades with creditworthy counterparties (currently,
PSI is the sole counterparty or broker), limiting the amount of margin or
premium required for any one commodity or all commodities combined and generally
limiting transactions to contracts which are traded in sufficient volume to
permit the taking and liquidating of positions. Additionally, pursuant to the
Advisory Agreement among Series B, the Managing Owner and the trading advisor,
Series B shall automatically terminate the trading advisor if the net asset
value allocated to the trading advisor declines by 33 1/3% from the value at the
beginning of any year or since the commencement of trading activities.
Furthermore, the Second Amended and Restated Declaration of Trust and Trust
Agreement provides that Series B will liquidate its positions, and eventually
dissolve, if Series B experiences a decline in the net asset value of 50% from
the value at the beginning of any year or since the commencement of trading
activities. In each case, the decline in net asset value is after giving effect
for distributions, contributions and redemptions. The Managing Owner may impose
additional restrictions (through modifications of such trading limitations and
policies) upon the trading activities of the trading advisor as it, in good
faith, deems to be in the best interests of Series B.
PSI, when acting as the futures commission merchant in accepting orders for
the purchase or sale of domestic futures and options contracts, is required by
Commodity Futures Trading Commission ('CFTC') regulations to separately account
for and segregate as belonging to Series B all assets of Series B relating to
domestic futures and options trading and is not to commingle such assets with
other assets of PSI. At September 24, 1999, such segregated assets totalled
$21,045,527. Part 30.7 of the CFTC regulations also requires PSI to secure
assets of Series B related to foreign futures and options trading which totalled
$2,583,395 at September 24, 1999. There are no segregation requirements for
assets related to forward trading.
As of September 24, 1999, all open futures contracts mature within one year.
As of September 24, 1999 and December 31, 1998, gross contract amounts of
open futures contracts were:
<TABLE>
<CAPTION>
1999 1998
------------ -----------
<S> <C> <C>
Financial Futures Contracts:
Commitments to purchase $ 11,900,122 $20,828,796
Commitments to sell 218,000,612 33,695,952
Currency Futures Contracts:
Commitments to purchase 19,318,953 2,212,998
Commitments to sell 7,399,096 4,951,649
Other Futures Contracts:
Commitments to purchase 13,944,066 95,361
Commitments to sell 176,799 2,291,372
</TABLE>
The gross contract amounts represent Series B's potential involvement in a
particular class of financial instrument (if it were to take or make delivery on
an underlying futures contract). The gross contract amounts significantly exceed
the future cash requirements as Series B intends to close out open positions
prior to settlement and thus is generally subject only to the risk of loss
arising from the change in the value of the contracts. As such, Series B
considers the 'fair value' of its futures contracts to be the net unrealized
gain or loss on the contracts. Thus, the amount at risk associated with
counterparty nonperformance of all contracts is the net unrealized gain included
in the statements of financial condition. The market risk
5
<PAGE>
associated with Series B's commitments to purchase commodities is limited to the
gross contract amounts involved, while the market risk associated with its
commitments to sell is unlimited since its potential involvement is to make
delivery of an underlying commodity at the contract price; therefore, it must
repurchase the contract at prevailing market prices.
At September 24, 1999 and December 31, 1998, the fair value of open futures
contracts was:
<TABLE>
<CAPTION>
1999 1998
------------------------ ------------------------
Assets Liabilities Assets Liabilities
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Domestic exchanges
Financial $ -- $ 132,125 $ 25,309 $ --
Currencies 226,955 137,849 156,861 4,900
Other 150,116 1,075 9,860 19,030
Foreign exchanges
Financial 183,489 125,236 230,845 45,758
Other 190,223 80,786 77,834 112,183
-------- ----------- -------- -----------
$750,783 $ 477,071 $500,709 $ 181,871
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures contracts for
the periods detailed below:
<TABLE>
<CAPTION>
Year-To-Date 1999 Year-To-Date 1998 Third Quarter 1999 Third Quarter 1998
---------------------- ---------------------- ---------------------- ----------------------
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
-------- ----------- -------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Domestic exchanges
Financial $102,907 $ 21,584 $ 95,570 $ 1,050 $186,209 $ 43,344 $ 89,972 $ 985
Currencies 243,663 68,298 70,359 18,086 273,087 95,407 69,980 16,109
Other 79,803 25,854 52,638 9,605 82,747 12,729 47,620 8,540
Foreign exchanges
Financial 259,485 57,446 195,288 11,046 269,344 87,435 186,949 12,226
Other 101,775 120,643 4,361 101,819 184,017 103,774 4,035 95,340
-------- ----------- -------- ----------- -------- ----------- -------- -----------
$787,633 $ 293,825 $418,216 $ 141,606 $995,404 $ 342,689 $398,556 $ 133,200
-------- ----------- -------- ----------- -------- ----------- -------- -----------
-------- ----------- -------- ----------- -------- ----------- -------- -----------
</TABLE>
The following table presents the trading revenues of futures contracts for
the periods detailed below:
<TABLE>
<CAPTION>
Year-To-Date 1999 Year-To-Date 1998 Third Quarter 1999 Third Quarter 1998
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Domestic exchanges
Financial $ (40,125) $ 514,225 $ (534,266) $ 521,338
Currencies 1,097,184 255,159 632,561 207,640
Other 1,333,823 (113,099) 872,451 (65,849)
Foreign exchanges
Financial 1,112,858 419,956 (231,345) 463,142
Other 57,427 (166,937) 365,025 (165,431)
----------------- ------------------ ------------------ ------------------
$ 3,561,167 $ 909,304 $1,104,426 $ 960,840
----------------- ------------------ ------------------ ------------------
----------------- ------------------ ------------------ ------------------
</TABLE>
6
<PAGE>
WORLD MONITOR TRUST--SERIES B
(a Delaware Business Trust)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Series B commenced operations on June 10, 1998 with gross proceeds of
$5,709,093 allocated to commodities trading. Additional contributions raised
through the continuous offering for the period from June 10, 1998 (commencement
of operations) through September 24, 1999 resulted in additional gross proceeds
to Series B of $15,621,493. Additional Interests of Series B will continue to be
offered on a weekly basis at the net asset value per Interest until the
subscription maximum of $33,000,000 is sold.
At September 24, 1999, 100% of Series B's net assets were allocated to
commodities trading. A significant portion of the net assets was held in cash
which is used as margin for Series B's trading in commodities. Inasmuch as the
sole business of Series B is to trade in commodities, Series B continues to own
such liquid assets to be used as margin. PSI credits Series B monthly with 100%
of the interest it earns on the average net assets in Series B's accounts.
The commodities contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
prices during a single day by regulations referred to as 'daily limits.' During
a single day, no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
neither be taken nor liquidated unless traders are willing to effect trades at
or within the limit. Commodity futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading. Such market
conditions could prevent Series B from promptly liquidating its commodity
futures positions.
Since Series B's business is to trade futures, forward and options contracts,
its capital is at risk due to changes in the value of these contracts (market
risk) or the inability of counterparties to perform under the terms of the
contracts (credit risk). Series B's exposure to market risk is influenced by a
number of factors including the volatility of interest rates and foreign
currency exchange rates, the liquidity of the markets in which the contracts are
traded and the relationships among the contracts held. The inherent uncertainty
of Series B's speculative trading as well as the development of drastic market
occurrences could result in monthly losses considerably beyond Series B's
experience to date and could ultimately lead to a loss of all or substantially
all of investors' capital. The Managing Owner attempts to minimize these risks
by requiring Series B and its trading advisor to abide by various trading
limitations and policies, which include limiting margin amounts, trading only in
liquid markets and utilizing stop loss provisions. See Note C to the financial
statements for a further discussion on the credit and market risks associated
with Series B's futures, forward and options contracts.
Redemptions of limited interests for Year-To-Date 1999 and Third Quarter 1999
were $1,181,358 and $566,433, respectively. Redemptions of limited interests
from June 10, 1998 (commencement of operations) through September 24, 1999 were
$1,427,680. Future redemptions and contributions will impact the amount of funds
available for investment in commodity contracts in subsequent periods.
Series B does not have, nor does it expect to have, any capital assets.
Results of Operations
The net asset value per Interest as of September 24, 1999 was $128.15, an
increase of 14.44% from the December 31, 1998 net asset value per Interest of
$111.98 and an increase of 3.51% from the June 25, 1999 net asset value per
Interest of $123.81.
Quarterly Market Overview
During the quarter, global financial markets experienced heavy volatility. In
July, U.S. Federal Reserve policy gave markets a boost. However, record trade
deficits, higher employment costs, fears of inflation and higher interest rates
in the U.S. quickly caused a reversal in U.S. stock and bond markets. Global
stock and bond markets followed U.S. markets demonstrating increased volatility.
The U.S. dollar also experienced fluctuations throughout the quarter as signs of
a stronger U.S. economy versus the European community
7
<PAGE>
supported the dollar's rise to new highs against most major currencies. However,
later in the quarter as a record trade gap and stronger than expected European
economic data were reported, the U.S. dollar came under pressure and continued
to fall against most major currencies and to record lows against the Japanese
yen. In the commodities markets, energy prices rose as OPEC members agreed to
maintain cuts in oil output. The metal sector experienced extreme movement as
gold prices rose to a two-year high following reports that 15 European Central
banks would limit sales and retain higher gold reserves.
Quarterly Performance of Series B
Series B captured gains in the energy sector from long positions in
light crude and heating oil. OPEC's production cuts continued to prove effective
for oil markets. Expectations that current output levels could be maintained for
the foreseeable future also contributed to the bullish sentiment.
Currency trading was profitable as British pound, Swiss franc, and Euro
positions generated gains. British pound sterling hit an 8-month high against
the U.S. dollar. The pound's value increase was supported by low inflation, low
unemployment and an unexpected rate increase by the Bank of England. The Swiss
franc bottomed out early in the quarter after trading passed an 8-year low
against the U.S. dollar. It had moved in sync with the Euro in the first half of
the quarter until the Euro surged against the U.S. dollar. The strengthening
Euro was short lived as investors unloaded Euros for a stronger Japanese yen.
Profits in the metal sector were derived from long copper, aluminum, zinc and
gold positions. Base metals benefited from the planned consolidation of aluminum
and copper producers, as this promises better control of production and supply.
Additionally, base metal prices, including zinc, moved higher as both growing
demand and various production problems caused a decline in warehouse stocks.
Gold prices rose following an auction by the Bank of England which yielded
higher-than-expected prices. The market later surged following a joint
announcement by 15 European Central banks that they would not sell or lease any
reserves, other than those previously designated for sale, for a period of five
years. This announcement removed a tremendous amount of supply uncertainty from
the market and allowed producer demand to send prices higher.
Losses were incurred in the financial sector due to positions in U.S.
Treasury, Australian 10-year and Australian 3-year bonds. Except for Japan,
global interest rate markets followed the U.S. lead as rates moved higher. On
August 24th, the Federal Open Market Committee decided to increase the U.S.
federal funds rate by 25 basis points. Australian interest rate markets were
particularly choppy, rallying fears of stock market weakness early in September
and reversing themselves near quarter end due to stronger U.S. economic news.
Trading in the index sector resulted in losses from long S&P 500 positions.
The U.S. stock market fell in expectation of the August interest rate hike,
falling 12% from its 1999 high in July. Global stock markets followed the U.S.
markets lead. Pressure to raise rates throughout the world repressed global
stock and bond prices as the quarter continued.
Series B commenced trading operations on June 10, 1998, and as such, full
year-to-date comparative information is not meaningful for 1998. Increases in
interest income, commissions and management fees during Third Quarter 1999 as
compared to Third Quarter 1998 are primarily due to the effect of contributions
received and favorable trading performance during 1998 and 1999 on Series B's
net asset values.
Interest income is earned on the average net assets held at PSI and,
therefore, varies monthly according to interest rates, trading performance,
contributions and redemptions. Interest income was approximately $630,000 and
$122,000 for Year-To-Date 1999 and Year-To-Date 1998, respectively. Interest
income increased by approximately $161,000 during Third Quarter 1999 as compared
to Third Quarter 1998 due to the reasons discussed above, partially offset by
lower interest rates in 1999.
Commissions are calculated on Series B's net asset value at the end of each
week and therefore, vary according to weekly trading performance, contributions
and redemptions. Commissions were approximately $1,010,000 and $167,000 for
Year-To-Date 1999 and Year-To-Date 1998, respectively. Commissions increased by
approximately $276,000 during Third Quarter 1999 as compared to Third Quarter
1998 due to the reasons discussed above.
All trading decisions for Series B are made by Eclipse Capital Management,
Inc. (the 'Trading Advisor'). Management fees are calculated on Series B's net
asset value at the end of each week and therefore, are
8
<PAGE>
affected by weekly trading performance, contributions and redemptions.
Management fees were approximately $262,000 and $43,000 for Year-To-Date 1999
and Year-To-Date 1998, respectively. Management fees increased by approximately
$71,000 during Third Quarter 1999 as compared to Third Quarter 1998 due to the
reasons discussed above.
Incentive fees are based on the New High Net Trading Profits generated by the
Trading Advisor, as defined in the Advisory Agreement among Series B, the
Managing Owner and the Trading Advisor. Incentive fees earned were approximately
$458,000, $140,000, $115,000 and $140,000 for Year-To-Date 1999, Year-To-Date
1998, Third Quarter 1999 and Third Quarter 1998, respectively.
Year 2000 Risk
A discussion of Year 2000 risk and its effect on the operations of Series B
is included in Series B's Annual Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information regarding quantitative and qualitative disclosures about market
risk is not required pursuant to Item 305(e) of Regulation S-K.
9
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against the Registrant or the Managing Owner.
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--
3.1
and
4.1-- Second Amended and Restated Declaration of Trust and Trust
Agreements of World Monitor Trust dated as of March 17, 1998
(incorporated by reference to Exhibits 3.1 and 4.1 to Series B's
Registration Statement on Form S-1, File No. 333-43041)
4.2-- Form of Request for Redemption (incorporated by reference
to Exhibit 4.2 to Series B's Registration Statement on Form
S-1, File No. 333-43041)
4.3-- Form of Exchange Request (incorporated by reference
to Exhibit 4.3 to Series B's Registration Statement
on Form S-1, File No. 333-43041)
4.4-- Form of Subscription Agreement (incorporated
by reference to Exhibit 4.4 to Series B's
Registration Statement on Form S-1, File No.
333-43041)
27.1--Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--None
10
<PAGE>
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 thereunto duly authorized.
WORLD MONITOR TRUST--SERIES B
By: Prudential Securities Futures Management Inc.
A Delaware corporation, Managing Owner
By: /s/ Steven Carlino Date: November 8, 1999
----------------------------------------
Steven Carlino
Vice President and Treasurer
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for World Monitor Trust--Series B
and is qualified in its entirety by reference
to such financial statements
</LEGEND>
<RESTATED>
<CIK> 1051823
<NAME> World Monitor Trust--Series B
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Sep-24-1999
<PERIOD-TYPE> 9-Mos
<CASH> 23,355,210
<SECURITIES> 273,712
<RECEIVABLES> 80,647
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 23,709,569
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 23,709,569
<CURRENT-LIABILITIES> 285,739
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 23,423,830
<TOTAL-LIABILITY-AND-EQUITY> 23,709,569
<SALES> 0
<TOTAL-REVENUES> 4,191,250
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,729,979
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,461,271
<EPS-BASIC> 16.85
<EPS-DILUTED> 0
</TABLE>
