BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
FINANCIAL STATEMENTS
JUNE 30, 2000
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
CONTENTS
Page
Accountants' Compilation Report 1
Financial Statements and Notes
Statement of Assets and Liabilities 2
Condensed Schedule of Investments 3 - 4
Statement of Operations 5
Statements of Changes in Net Assets 6
Notes to Financial Statements 7 - 9
-2-
<PAGE>
ACCOUNTANTS' COMPILATION REPORT
To the General Partner
BMO Partners Fund, L.P.
(A Delaware Limited Partnership):
We have compiled the accompanying statement of assets and liabilities of BMO
Partners Fund, L.P. (A Delaware Limited Partnership), including the condensed
schedule of investments as of June 30, 2000, and the related statements of
operations and changes in net assets for the six months then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not
express an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1999 were audited by
us and we expressed an unqualified opinion on them in our report dated
February 15, 2000, but we have not performed any auditing procedures since
that date.
New York, New York
July 11, 2000
-3-
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(See Accountants' Compilation Report)
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING
POLICIES
Nature of Business
BMO Partners Fund, L.P. ("Partnership") was organized under the laws of the
State of Delaware in 1991 as a limited partnership for the purpose of
investing in publicly traded equity and debt securities. The Partnership
maintains its general office in New York City.
Security Valuation
Investments in securities traded on a national securities exchange (or
reported on the NASDAQ national market) are stated at the last sales price on
the day of valuation. Other securities traded in the over-the-counter market
and other securities for which no sale was reported on that date are stated
at the last quoted bid price.
Cash Equivalents
Cash equivalents consist of amounts held in money market accounts whose fair
value approximates their carrying amount. At June 30, 2000 and throughout
the year, the Partnership maintained balances in excess of insurable limits.
The Partnership has not experienced any losses in such accounts and believes
it is not subject to any significant credit risk with respect to cash
equivalents.
Income Taxes
As a limited partnership, the partners are required to include their
proportionate share of the Partnership's taxable income or loss on their
respective income tax returns. Accordingly, there is no provision for
federal, state or city income taxes in these financial statements.
The Partnership is not subject to the New York City unincorporated business
tax since its sole activity is investing for its own account.
-4-
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(See Accountants' Compilation Report)
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the general partner to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
Other
The Partnership follows industry practice and records security transactions
on the trade date. Dividend income is recognized on the ex-dividend date,
and interest income is recognized on an accrual basis. Discounts and
premiums on securities purchased are amortized over the life of the
respective securities. Realized gains and losses from securities
transactions are recorded on a first-in, first-out basis.
NOTE 2 - INVESTMENT ADVISORY FEES
The general partner is a partnership which makes all investment decisions and
is compensated solely by receiving a quarterly management fee as defined in
the partnership agreement. Under the terms of this agreement, the general
partner is entitled to investment advisory fees, calculated quarterly, based
on an annual rate of 1% of the first $5,000,000 in net assets, 0.75% on the
second $5,000,000 in net assets, and 0.50% on net assets over $10,000,000.
Investment advisory fees paid to the general partner were $94,199 for the six
months ended June 30, 2000.
-5-
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(See Accountants' Compilation Report)
NOTE 3 - CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject the Partnership to
concentrations of credit risk consist primarily of cash equivalents and
investments. The Partnership maintains cash and cash equivalents, short and
long-term investments and other financial instruments at a major financial
institution.
NOTE 4 - ALLOCATION OF PARTNERS' CAPITAL
The net income of the Partnership is allocated among the partners in
proportion to their respective capital accounts as follows:
General Limited
Total Partner Partners
Partners' capital -January 1, $31,383,636 $ - $31,383,636
2000
Partners' capital contributions 620,823 - 620,823
Distributions to partners (3,413,381) - (3,413,381)
Net increase in net assets
resulting from operations 1,784,325 1,784,325
Partners' capital -June 30, 2000 $30,375,403 $ - $30,375,403
------------ ------ -----------
-6-
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
Assets
Investments in securities,
at market value (cost $16,096,978) $29,272,315
Cash and cash equivalents
1,083,532
Receivables
Dividends 21,273
Interest 15,283
Total assets
30,392,403
Liabilities
Accrued liabilities
17,000
Total liabilities
17,000
Net assets $30,375,403
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
CONDENSED SCHEDULE OF INVESTMENTS
JUNE 30, 2000
Shares Value
------ -----
Securities by industry
Common stocks (94.32%) (a)
United States
Consumer non-durables (21.67%)
Pharmaceuticals and hospital supplies
(13.76%) (b) $ 4,180,235
Publishing and broadcasting (2.77%) 842,303
Entertainment and leisure (1.32%) 400,000
Services (3.82%) 1,159,706
Services (5.38%)
Services (1.29%) 390,833
Telecommunications (4.09%) 1,241,656
Intermediates (1.21%)
Railroads (1.21%) 368,156
Capital goods (32.58%)
Computer and office supplies (3.61%) 1,095,031
-2-
<PAGE>
Electrical equipment (5.37%) (b) 1,632,604
Electronics (4.51%) 1,369,130
Machinery (4.83%) 1,467,978
Miscellaneous industrials (4.94%) 1,500,208
Telecommunications
AT&T Corp. Liberty Media Group (7.02%) 87,940 2,132,545
Other (2.30%) 699,356
Energy (4.17%)
Oil - domestic & crudes (4.17%) 1,267,682
Miscllaneous industrials (4.78%)
Miscellaneous industrials - energy
(4.78%) 1,452,518
Transportation (1.96%)
Freight and shipping (1.96%) 596,600
See notes to financial statements and accountants'
compilation report.
-3-
<PAGE>
BMO PARTNERS FUND, L.P.
(A Delaware Limited Partnership)
CONDENSED SCHEDULE OF INVESTMENTS
(CONTINUED)
JUNE 30, 2000
Value
-----
Securities by industry (continued)
Common stocks (94.34%) (a) (continued)
Financial (19.98%)
Banks (1.86%) 563,895
Credit and finance (6.33%) (b) 1,923,161
Insurance
American International Group, Inc.
6.91%) 17,860 2,098,550
Other (4.88%)
1,483,650
Public utilities (2.59%)
Natural gas (2.59%) 787,893
Total common stocks (cost
$15,408,918) 28,653,690
-4-
<PAGE>
Fixed income (2.04%)
Municipal bonds (.84%) (a)
United States
Puerto Rico 7.7% due 7/1/2020 (.84%) 255,373
Total municipal bonds (cost $302,185) 255,373
U.S. government obligation (1.20%) (a)
U.S. Treasury 4.750% note due 11/15/08 (1.20%) 363,252
Total U.S. government obligations (cost
$385,875) 363,252
Total - 96.37% (cost $16,096,978) $ 29,272,315
(a) Percent of net assets on the statement of assets and liabilities.
(b) No holdings in any one company in this category exceed 5% of net
assets on the statement of assets and liabilities
See notes to financial statements and accountants'
compilation report.
-5-
