<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1996
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 0-9202
THE FUTURE FUND
(Exact name of registrant as specified in its charter)
Illinois # 36-3033727
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Heinold Asset Management, Inc.
One Financial Place
440 S. LaSalle - 20th Floor
Chicago, Illinois
(Address of principal executive offices)
60605
(Zip Code)
(312) 663-7900
(Registrant's telephone number, including area code)
Same (Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 OCTOBER 31,
ASSETS: (UNAUDITED) 1995
--------------- ---------------
CASH $ 0 $ 0
----------- -----------
EQUITY IN FUTURES TRADING ACCOUNTS:
UNITED STATES TREASURY SECURITIES, AT
COST PLUS ACCRUED INTEREST WHICH
APPROXIMATES MARKET 13,560,497 13,884,966
NET UNREALIZED APPRECIATION ON
OPEN FUTURES CONTRACTS 1,164,138 224,329
AMOUNT DUE FROM (TO) BROKER 730,292 1,135,614
----------- -----------
15,454,927 15,244,909
----------- -----------
$15,454,927 $15,244,909
=========== ===========
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS
PAYABLE $ 90,147 $ 88,932
ACCRUED MANAGEMENT FEE 55,334 50,818
ACCRUED PROFIT SHARE 94,726 0
REDEMPTIONS PAYABLE 172,329 47,440
OTHER ACCRUED EXPENSES 1,169 5,421
----------- -----------
413,705 192,611
----------- -----------
PARTNERS' CAPITAL:
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT JANUARY 31, 1996 AND
OCTOBER 31, 1995, RESPECTIVELY 199,906 188,495
LIMITED PARTNERS, 16,333 AND 17,348 UNITS
EQUIVALENTS OUTSTANDING AT JANUARY 31, 1996
AND OCTOBER 31, 1995, RESPECTIVELY 14,841,316 14,863,803
----------- -----------
TOTAL PARTNERS' CAPITAL 15,041,222 15,052,298
----------- -----------
$15,454,927 $15,244,909
=========== ===========
NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST $ 908.67 $ 856.80
=========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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<PAGE> 3
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
<TABLE>
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
-------------- -------------- --------------
<S> <C> <C> <C>
FUND EQUITY AT OCTOBER 31, 1995 $ 14,863,803 $ 188,495 $ 15,052,298
(17,348 LIMITED PARTNERSHIP UNITS)
REDEMPTION OF 1,958 LIMITED
PARTNERSHIP UNITS (1,728,830) (1,728,830)
ADDITION OF 943 LIMITED PARTNERSHIP UNITS 797,000 797,000
NET GAIN (LOSS) IN FUND EQUITY
FROM OPERATIONS 909,343 11,411 920,754
-------------- -------------- --------------
FUND EQUITY AT JANUARY 31, 1996 $ 14,841,316 $ 199,906 $ 15,041,222
(16,333 LIMITED PARTNERSHIP UNITS) ============== ============== ==============
NET ASSET VALUE PER UNIT AT
JANUARY 31, 1996: $ 908.67
==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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<PAGE> 4
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JANUARY 31, 1996 AND 1995 (UNAUDITED)
<TABLE>
<Caption >
REVENUES: 1996 1995
--------------- ---------------
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 369,128 $ 614,540
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS 964,309 (354,301)
INTEREST INCOME 203,993 194,282
---------- ---------
1,537,430 454,521
---------- ---------
EXPENSES:
BROKERAGE COMMISSIONS 275,817 318,904
MANAGEMENT FEE 160,425 174,173
PROFIT SHARE 171,434 118,865
OTHER ADMINISTRATIVE EXPENSES 9,000 13,000
---------- ---------
616,676 624,942
---------- ---------
NET INCOME (LOSS) $ 920,754 $(170,421)
========== =========
NET GAIN ALLOCATED TO
GENERAL PARTNER $ 11,411 $ (1,878)
========== =========
NET GAIN ALLOCATED TO
LIMITED PARTNERS $ 909,343 $(168,543)
========== =========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ 51.87 $ (8.53)
========== =========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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<PAGE> 5
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JANUARY 31, 1996 AND 1995 (UNAUDITED)
-------
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
--------------- ---------------
FUNDS PROVIDED BY:
NET INCOME (LOSS) 920,754 (170,421)
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS (210,018) 752,154
INCREASE IN OTHER LIABILITIES 0
--------------- ---------------
TOTAL FUNDS PROVIDED 710,736 581,733
--------------- ---------------
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 1,728,830 488,783
ADDITION OF LIMITED PARTNERSHIP UNITS (797,000) 0
INCREASE IN EQUITY IN COMMODITY FUTURES
TRADING ACCOUNTS
(INCREASE) DECREASE IN OTHER LIABILITIES (221,094) 92,950
--------------- ---------------
TOTAL FUNDS APPLIED 710,736 581,733
--------------- ---------------
CHANGE IN CASH BALANCE $ 0 0
--------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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<PAGE> 6
THE FUTURE FUND
(An Illinois Limited Partnership)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS
1. The financial information included herein, other than the condensed
Statement of Financial Condition as of October 31, 1995, has been prepared by
management without audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of January 31, 1996 has been
derived from the audited financial statements as of October 31, 1995. The
interim financial statements do not include all the disclosures contained in
the annual financial statements. The information furnished includes all
adjustments which are, in the opinion of management, necessary for a fair
statement of results for the interim periods. The results of operations as
presented, however, should not be considered indicative of the results to be
expected for the entire year.
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<PAGE> 7
THE FUTURE FUND
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS, Continued
ITEM 2, Management's Discussion and Analysis of Financial
Condition and Operating Results for the three months ended
January 31, 1996.
January 31, 1996 October 31, 1995
Ending Equity (Note A) $15,041,222 $15,052,298
NOTE A:
Ending equity at January 31, 1996 is slightly lower than ending equity at
October 31, 1995 due to redemptions offsetting profitable trading during the
period.
Three months ended Three months ended
January 31, 1996 January 31, 1995
Change in net unrealized
trading gains (losses) on
open futures and forward
contracts (Note B)
$964,309 $(354,301)
NOTE B:
Change in net unrealized trading gains (losses) on open futures and
forward contracts for the three months ended January 31, 1996 is higher than
change in net unrealized trading gains (losses) on open futures and forward
contracts for the three months ended January 31, 1995 due to more profitable
trading during the period.
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<PAGE> 8
EXHIBITS
None
PART II
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE FUTURE FUND
(Registrant)
By Heinold Asset Management, Inc.
(General Partner)
By
Robert Ledvora
Executive Vice President
and Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> OCT-31-1995 OCT-31-1994
<PERIOD-START> OCT-31-1995 OCT-31-1994
<PERIOD-END> JAN-31-1996 JAN-31-1995
<CASH> 730,292 1,135,614
<RECEIVABLES> 1,164,138 224,329
<SECURITIES-RESALE> 13,560,497 13,884,966
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 15,454,927 15,244,909
<SHORT-TERM> 0 0
<PAYABLES> 413,705 192,611
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
<COMMON> 15,041,222 15,052,298
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 15,454,927 15,244,909
<TRADING-REVENUE> 1,333,437 260,239
<INTEREST-DIVIDENDS> 203,993 194,282
<COMMISSIONS> (275,817) (318,904)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (340,859) (306,038)
<INCOME-PRETAX> 920,754 (170,421)
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 920,754 (170,421)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
