<PAGE>
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 June 30, 2000
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: 0-25789
WORLD MONITOR TRUST--SERIES C
--------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3985042
--------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of 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 C
(a Delaware Business Trust)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
<S> <C> <C>
----------------------------------------------------------------------------------------------------
ASSETS
Cash $10,957,707 $17,735,229
Net unrealized gain on open futures contracts -- 926,878
Net unrealized gain on open forward contracts -- 21,916
Accrued interest receivable 1,811 --
------------- ------------
Total assets $10,959,518 $18,684,023
------------- ------------
------------- ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Redemptions payable $ 114,249 $ 52,286
Commissions payable 26,348 127,800
Net unrealized loss on open forward contracts 12,928 --
Management fees payable 7,909 35,938
Incentive fees payable -- 100
------------- ------------
Total liabilities 161,434 216,124
------------- ------------
Commitments
Trust capital
Limited interests (159,304.449 and 189,911.407 interests
outstanding) 10,677,437 18,227,946
General interests (1,800 and 2,500 interests outstanding) 120,647 239,953
------------- ------------
Total trust capital 10,798,084 18,467,899
------------- ------------
Total liabilities and trust capital $10,959,518 $18,684,023
------------- ------------
------------- ------------
Net asset value per limited and general interests ('Interests') $ 67.03 $ 95.98
------------- ------------
------------- ------------
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
2
<PAGE>
WORLD MONITOR TRUST--SERIES C
(a Delaware Business Trust)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the For the For the For the
period from period from period from period from
January 1, January 1, April 1, March 27,
2000 to 1999 to 2000 to 1999 to
June 30, 2000 June 25, 1999 June 30, 2000 June 25, 1999
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on commodity
transactions $(4,240,851) $ 1,604,243 $ (771,191) $ 504,952
Change in net unrealized gain/loss on open
commodity positions (961,722) (232,208) (590,529) 343,367
Interest income 437,079 331,069 206,452 184,942
--------------- --------------- --------------- ---------------
(4,765,494) 1,703,104 (1,155,268) 1,033,261
--------------- --------------- --------------- ---------------
EXPENSES
Commissions 497,555 546,115 190,590 313,381
Management fees 128,198 141,220 49,098 81,234
Incentive fees -- 141,868 -- 104,857
--------------- --------------- --------------- ---------------
625,753 829,203 239,688 499,472
--------------- --------------- --------------- ---------------
Net income (loss) $(5,391,247) $ 873,901 $(1,394,956) $ 533,789
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
ALLOCATION OF NET INCOME (LOSS)
Limited interests $(5,318,862) $ 863,730 $(1,375,452) $ 527,035
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
General interests $ (72,385) $ 10,171 $ (19,504) $ 6,754
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
NET INCOME (LOSS) PER WEIGHTED AVERAGE
LIMITED AND GENERAL INTEREST
Net income (loss) per weighted average
limited and general interest $ (29.48) $ 6.49 $ (7.90) $ 3.63
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Weighted average number of limited and
general interests outstanding 182,892 134,711 176,597 147,182
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
-----------------------------------------------------------------------------------------------------------------
</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, 1999 192,411.407 $18,227,946 $239,953 $18,467,899
Contributions 9,814.185 823,882 -- 823,882
Net loss -- (5,318,862) (72,385 ) (5,391,247)
Redemptions (41,121.143) (3,055,529) (46,921 ) (3,102,450)
------------ ----------- --------- -----------
Trust capital--June 30, 2000 161,104.449 $10,677,437 $120,647 $10,798,084
------------ ----------- --------- -----------
------------ ----------- --------- -----------
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE>
WORLD MONITOR TRUST--SERIES C
(a Delaware Business Trust)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of Prudential Securities Futures Management Inc. (the 'Managing Owner'), the
financial statements contain all adjustments (consisting of only normal
recurring adjustments) necessary to present fairly the financial position of
World Monitor Trust--Series C ('Series C') as of June 30, 2000 and the results
of its operations for the periods from January 1, 2000 to June 30, 2000
('Year-To-Date 2000'), January 1, 1999 to June 25, 1999 ('Year-To-Date 1999'),
April 1, 2000 to June 30, 2000 ('Second Quarter 2000') and March 27, 1999 to
June 25, 1999 ('Second Quarter 1999'). 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 C's annual report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1999 (the 'Annual Report').
As of June 7, 2000, Hyman Beck & Company, Inc. ('Hyman Beck') ceased to serve
as a trading advisor to Series C. The advisory agreement among Series C, the
Managing Owner and Hyman Beck was automatically terminated when the assets
allocated to Hyman Beck declined by greater than 33 1/3% from their initial
allocation on June 10, 1998. Series C's assets are not currently allocated to
commodities trading and, as such, have not been subject to management fees or
commissions since June 7, 2000. The Managing Owner is currently considering
other independent commodity trading advisors to trade on behalf of Series C.
B. Related Parties
The Managing Owner of Series C is 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 C 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 offering Series C's Interests as
well as its routine operational, administrative, legal and auditing costs.
The costs charged to Series C for brokerage services for Year-To-Date 2000,
Year-To-Date 1999, Second Quarter 2000 and Second Quarter 1999 were $497,555,
$546,115, $190,590 and $313,381, respectively.
All of the proceeds of the offering of Series C are received in the name of
Series C and deposited in trading or cash accounts at PSI, Series C's commodity
broker. Series C's assets are maintained either with PSI or, for margin
purposes, with the various exchanges on which Series C is permitted to trade.
PSI credits Series C monthly with 100% of the interest it earns on the average
net assets in Series C's accounts.
Series C, acting through its trading advisor, executes 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 C pursuant to a line of credit. PSI may require that collateral
be posted against the marked-to-market positions of Series C.
As of June 30, 2000, a non-U.S. affiliate of the Managing Owner owns 230.304
limited interests of Series C. Additionally, a director of the Managing Owner
owns 108.189 limited interests of Series C.
C. Derivative Instruments and Associated Risks
Series C is exposed to various types of risks associated with the derivative
instruments and related markets in which it invests. These risks include, but
are not limited to, risk of loss from fluctuations in the
4
<PAGE>
value of derivative instruments held (market risk) and the inability of
counterparties to perform under the terms of Series C's investment activities
(credit risk).
Market risk
Trading in futures and forward (including foreign exchange transactions)
contracts involves entering into contractual commitments to purchase or sell a
particular commodity at a specified date and price. The gross or face amount of
the contracts, which is typically many times that of Series C's net assets being
traded, significantly exceeds Series C's future cash requirements since Series C
intends to close out its open positions prior to settlement. As a result, Series
C is generally subject only to the risk of loss arising from the change in the
value of the contracts. As such, Series C considers the 'fair value' of its
derivative instruments to be the net unrealized gain or loss on the contracts.
The market risk associated with Series C's commitments to purchase commodities
is limited to the gross or face amount of the contracts held. However, when
Series C enters into a contractual commitment to sell commodities, it must make
delivery of the underlying commodity at the contract price and then repurchase
the contract at prevailing market prices. Since the repurchase price to which a
commodity can rise is unlimited, entering into commitments to sell commodities
exposes Series C to unlimited risk.
Market risk is influenced by a wide variety of factors including government
programs and policies, political and economic events, the level and volatility
of interest rates, foreign currency exchange rates, the diversification effects
among the derivative instruments Series C holds and the liquidity and inherent
volatility of the markets in which Series C trades.
Credit risk
When entering into futures or forward contracts, Series C is exposed to
credit risk that the counterparty to the contract will not meet its obligations.
The counterparty for futures contracts traded in the United States and on most
foreign futures exchanges is the clearinghouse associated with such exchanges.
In general, clearinghouses are backed by the corporate members of the
clearinghouse who are required to share any financial burden resulting from the
non-performance by one of its members and, as such, should significantly reduce
this credit risk. In cases where the clearinghouse is not backed by the clearing
members (i.e., some foreign exchanges), it is normally backed by a consortium of
banks or other financial institutions. On the other hand, the sole counterparty
to Series C's forward transactions is PSI, Series C's commodity broker. Series C
has entered into a master netting agreement with PSI and, as a result, presents
unrealized gains and losses on open forward positions as a net amount in the
statements of financial condition. The amount at risk associated with
counterparty non-performance of all of Series C's contracts is the net
unrealized gain included in the statements of financial condition. There can be
no assurance that any counterparty, clearing member or clearinghouse will meet
its obligations to Series C.
The Managing Owner attempts to minimize both credit and market risks by
requiring Series C 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, the
Advisory Agreement among Series C, the Managing Owner and Hyman Beck, provided
that Series C shall automatically terminate Hyman Beck if the net asset value
allocated to Hyman Beck declined by 33 1/3% from the value at the beginning of
any year or since the commencement of trading activities. (See Note A for a
discussion of the termination of Hyman Beck as a trading advisor to Series C.)
Furthermore, the Second Amended and Restated Declaration of Trust and Trust
Agreement provides that Series C will liquidate its positions, and eventually
dissolve, if Series C 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 C.
PSI, when acting as Series C's futures commission merchant in accepting
orders for the purchase or sale of domestic futures contracts, is required by
Commodity Futures Trading Commission ('CFTC') regulations to separately account
for and segregate as belonging to Series C all assets of Series C relating to
domestic
5
<PAGE>
futures trading and is not to commingle such assets with other assets of PSI. At
June 30, 2000, such segregated assets totalled $9,652,736. Part 30.7 of the CFTC
regulations also requires PSI to secure assets of Series C related to foreign
futures trading which totalled $1,292,043 at June 30, 2000. There are no
segregation requirements for assets related to forward trading.
As of June 30, 2000, Series C's open forward contracts mature within three
months.
The following table presents the fair value of futures and forward contracts
at December 31, 1999:
<TABLE>
<CAPTION>
Assets Liabilities
---------- -----------
<S> <C> <C>
Futures Contracts:
Domestic exchanges
Interest rates $ 130,618 $ --
Stock indices 74,920 48,180
Currencies 442,034 124,200
Commodities 251,343 66,057
Foreign exchanges
Interest rates 125,892 17,912
Stock indices 179,998 235,856
Commodities 359,687 145,409
Forward Contracts:
Currencies 30,613 8,697
---------- -----------
$1,595,105 $ 646,311
---------- -----------
---------- -----------
</TABLE>
The fair value of Series C's forward contracts consisted of $17,063 of assets
and $29,991 of liabilities at June 30, 2000.
6
<PAGE>
WORLD MONITOR TRUST--SERIES C
(a Delaware Business Trust)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Series C commenced operations on June 10, 1998 with gross proceeds of
$5,706,177 allocated to commodities trading. Additional contributions raised
through the continuous offering for the period from June 10, 1998 (commencement
of operations) to June 30, 2000 resulted in additional gross proceeds to Series
C of $17,700,989. Additional Interests of Series C 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.
Interests in Series C may be redeemed on a weekly basis, but are subject to a
redemption fee if transacted within one year of the effective date of purchase.
Redemptions of limited interests for Year-To-Date 2000 and Second Quarter 2000
were $3,055,529 and $1,418,768, respectively. Redemptions of limited interests
for the period from June 10, 1998 (commencement of operations) to June 30, 2000
were $5,956,653. The first redemption of general interests took place during the
Second Quarter 2000 and totaled $46,921. Additionally, Interests owned in one
series may be exchanged, without any charge, for Interests of one or more other
series on a weekly basis for as long as Interests in those series are being
offered to the public. Future contributions, redemptions and exchanges will
impact the amount of funds available for investment in commodity contracts in
subsequent periods.
Throughout Year-To-Date 2000, a significant portion of Series C's net assets
was held in cash which was used as margin for Series C's trading in commodities.
Inasmuch as the sole business of Series C is to trade in commodities, Series C
will continue to own such liquid assets to be used as margin. PSI credits Series
C monthly with 100% of the interest it earns on the average net assets in Series
C'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 C from promptly liquidating its commodity
futures positions.
Since Series C'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 C'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 C's speculative trading as well as the development of drastic market
occurrences could result in monthly losses considerably beyond Series C'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 C 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 C's futures and forward contracts.
Series C does not have, nor does it expect to have, any capital assets.
Results of Operations
The net asset value per Interest as of June 30, 2000 was $67.03, a decrease
of 30.16% from the December 31, 1999 net asset value per Interest of $95.98 and
a decrease of 10.42% from the March 31, 2000 net asset value per Interest of
$74.83.
Series C's gross trading gains/(losses) were ($5,203,000) and ($1,362,000)
during Year-To-Date 2000 and Second Quarter 2000, respectively compared to
$1,372,000 and $848,000 during Year-To-Date 1999 and
7
<PAGE>
Second Quarter 1999, respectively. Due to the nature of Series C's trading
activities, a period to period comparison of its trading results is not
meaningful. However, a detailed discussion of Series C's Second Quarter 2000
trading results is presented below.
Quarterly Market Overview
U.S. economic growth remained rapid throughout April and May, evidenced by
economic indicators across the board. Consumer spending trended upward strongly
and housing demand was high. Industrial production and wages expanded briskly in
response to burgeoning domestic demand. Labor markets continued to be very tight
as employment surged. Signs of an economic slowdown appeared in June as markets
reacted to higher than expected unemployment numbers at the end of May. However,
economic expansion remained robust in most world markets throughout the quarter.
The Japanese economy showed indications of increased demand in the first five
months of 2000. Economic activity in developing countries also continued. Key
South American economies recovered from recent recessions, while several Asian
emerging market countries settled into growth at a more sustained rate.
During the quarter, financial markets were dominated by continued volatility
in the equity sector. U.S. equity markets, especially more speculative
technology stocks, experienced a sell-off in April as investors' confidence
declined. Stock indices rallied toward the end of June, but the S&P, Dow, and
NASDAQ all ended the first half of the year down.
Global bond markets mirrored the volatility of the equity markets. Early in
the quarter, both U.S. and European prices on interest rate instruments fell due
to a rate hike by the European Central Bank at the end of April and a strong
U.S. economy. Global bond prices plummeted again in May in anticipation of a
U.S. interest rate hike. The U.S. Federal Reserve raised rates by 50 basis
points to 6.5%. This forceful policy (more than the 25 basis point increases
implemented since mid 1999) was due to the persistent strength of overall demand
and growing pressure in a tight labor market. As the quarter continued and new
economic data was released, it became apparent that the U.S. economy was
decelerating and bond prices rallied slightly.
The value of the U.S. dollar appreciated considerably against most major
currencies at the beginning of the quarter, reflecting, in part, the larger
increases in U.S. long-term yields relative to rates in most foreign countries.
The dollar's rise against the euro was sizable, but it also made moderate gains
against the British pound, Japanese yen, and Canadian dollar. In June, as the
U.S. economy showed signs of slowing down, the U.S. dollar weakened against most
major currencies. The euro reached all time lows in May before rallying in June
as a result of solid European economic data and sentiment that the currency was
undervalued. In May, the Japanese yen rose against the U.S. dollar supported by
expectations of a possible change in the Bank of Japan's zero-interest rate
policy. As the Japanese economy failed to sustain its recovery momentum, the yen
lost some ground.
Increased demand caused oil prices to surge at the beginning of the quarter.
In June, OPEC countries agreed to increase oil production as higher gas prices
put inflationary pressure on global economies and oil prices reversed downward.
In the metals markets, the trend of falling prices in April and May reversed
itself later in the quarter as gold soared driven, in part, by weakening in the
U.S. dollar and U.S. economy.
Quarterly Performance of Series C
The following is a summary of performance for the major sectors in which
Series C traded:
Financial (-): Long Japanese government bond positions resulted in gains as
the Japanese government deferred their decision to change their current zero
interest rate policy. Losses in long 10-year euro bond positions were due to
actions taken by the European Central Bank to raise short-term rates in April
and June.
Metals (-): Short aluminum positions incurred losses as prices rose driven by
a weakening U.S. economy.
Index (-): The second quarter brought a reversal to some global equity
markets. A strong U.S. economy began showing signs of a slowdown and U.S. equity
markets experienced an April sell-off. Overall, continued volatility in world
equity markets resulted in losses in Nikkei Dow and euro DAX positions.
Currency (-): Shifting expectations regarding the timing of tightening
monetary policy by the Bank of Japan reversed the direction of the yen downward,
resulting in losses for long yen and Japanese yen/U.S. dollar cross-rate
positions.
8
<PAGE>
Softs (+): Sugar prices were consistently strong throughout the quarter as
producing countries placed new orders to cover shortfalls. Long sugar positions
resulted in gains.
As of June 7, 2000, Hyman Beck & Company, Inc. ('Hyman Beck') ceased to serve
as a trading advisor to Series C. The advisory agreement among Series C, the
Managing Owner and Hyman Beck was automatically terminated when the assets
allocated to Hyman Beck declined by greater than 33 1/3% from their initial
allocation on June 10, 1998. Series C's assets are not currently allocated to
commodities trading and, as such, have not been subject to management fees or
commissions since June 7, 2000. The Managing Owner is currently considering
other independent commodity trading advisors to trade on behalf of Series C.
Series C's average net asset levels during Year-To-Date 2000 and Second
Quarter 2000 have decreased from Year-To-Date 1999 and Second Quarter 1999
primarily due to redemptions during 1999 and 2000 and unfavorable trading
performance during the second half of 1999 and Year-To-Date 2000 offset, in
part, by additional contributions during 1999 and Year-To-Date 2000.
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 increased $106,000 and $22,000
during Year-To-Date 2000 and Second Quarter 2000, respectively as compared to
Year-To-Date 1999 and Second Quarter 1999, respectively due to higher interest
rates during 2000 offset, in part, by the overall decrease in net assets during
2000 versus 1999 as discussed above.
Commissions were calculated on Series C's net asset value at the end of each
week and, therefore, vary according to weekly trading performance, contributions
and redemptions. Commissions decreased $49,000 and $123,000 during Year-To-Date
2000 and Second Quarter 2000, respectively as compared to Year-To-Date 1999 and
Second Quarter 1999, respectively due to the decrease in average net assets as
well as the postponement of commissions charged to Series C by PSI on the net
assets unallocated to commodities trading as discussed above.
Until June 7, 2000 all trading decisions for Series C were made by Hyman Beck
& Company, Inc. Management fees were calculated on Series C's net asset value at
the end of each week and, therefore, were affected by weekly trading
performance, contributions and redemptions. Management fees decreased $13,000
and $32,000 during Year-To-Date 2000 and Second Quarter 2000, respectively as
compared to Year-To-Date 1999 and Second Quarter 1999, respectively due to the
decrease in average net assets as well as the termination of Hyman Beck as the
trading advisor of Series C as discussed above.
Incentive fees were based on the New High Net Trading Profits generated by
the trading advisor, as defined in the Advisory Agreement among Series C, the
Managing Owner and the trading advisor. Incentive fees were $142,000 and $105,00
for Year-To-Date 1999 and Second Quarter 1999, respectively. No incentive fees
were generated during Year-To-Date 2000.
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--Effective July 2000, Joseph A. Filicetti resigned as
President and a Director of Prudential Securities Futures Management
Inc.
Item 6. (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 C's Registration Statement on Form S-1,
File No. 333-43043)
4.2-- Form of Request for Redemption (incorporated by reference to Exhibit 4.2
to Series C's Registration Statement on Form S-1, File No. 333-43043)
4.3-- Form of Exchange Request (incorporated by reference to Exhibit 4.3 to
Series C's Registration Statement on Form S-1, File No. 333-43043)
4.4-- Form of Subscription Agreement (incorporated by reference to Exhibit 4.4
to Series C's Registration Statement on Form S-1, File No. 333-43043)
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 C
By: Prudential Securities Futures Management Inc.
A Delaware corporation, Managing Owner
By: /s/ Steven Carlino Date: August 14, 2000
----------------------------------------
Steven Carlino
Vice President and Treasurer
11
