<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 JULY 31, 1997
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
-------------------------------------
Commission file number 0-9202
THE FUTURE FUND
(Exact name of registrant as specified in its charter)
State of jurisdiction or incorporation (Illinois)
IRS EMPLOYER ID NO. #36-3033727
C/O HEINOLD ASSET MANAGEMENT, INC.
ONE FINANCIAL PLACE
440 S. LASALLE STREET 21st FLOOR
CHICAGO, ILLINOIS 60605
PHONE NUMBER 663-7500
SAME
(Former name, former address and former fiscal year, if changed)
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 shortened 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]
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<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
JULY 31, 1997 OCTOBER 31,
ASSETS (UNAUDITED) 1996
<S> <C> <C>
CASH 0 0
EQUITY IN FUTURES TRADING ACCOUNTS:
UNITED STATES TREASURY SECURITIES, AT
COST PLUS ACCRUED INTEREST WHICH
APPROXIMATES MARKET 0 44,422
NET UNREALIZED APPRECIATION ON
OPEN FUTURES CONTRACTS 1,968,342 2,353,208
AMOUNT DUE FROM (TO) BROKER 14,917,870 12,466,522
================================================
16,886,211 14,864,152
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS 98,457 86,669
ACCRUED MANAGEMENT FEE 54,804 55,381
ACCRUED PROFIT SHARE 311,358 288,923
REDEMPTIONS PAYABLE 29,158 70,695
OTHER ACCRUED EXPENSES 7,836 6,578
===============================================
501,613 508,246
PARTNERS' CAPITAL:
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT JULY 31, 1997 AND
OCTOBER 31, 1996, RESPECTIVELY 261,829 221,393
LIMITED PARTNERS, 13,547 AND 14,046 UNITS
EQUIVALENTS OUTSTANDING AT JULY 31, 1997
AND OCTOBER 31, 1996, RESPECTIVELY 16,122,769 14,134,513
------------ ------------
TOTAL PARTNERS' CAPITAL 16,384,597 14,355,906
------------ ------------
16,886,211 14,864,152
============ ============
NET ASSET VALUE PER UNIT OUTSTANDING 1,190.13 1,006.33
</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 NINE MONTHS ENDED JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
------------ ------------- --------------
<S> <C> <C> <C>
FUND EQUITY AT OCTOBER 31, 1996 14,134,513 221,393 14,355,906
(14,046 LIMITED PARTNERSHIP UNITS)
REDEMPTION OF 499 LIMITED PARTNERSHIP UNITS (537,451) (537,451)
NET INCOME 2,525,706 40,436 2,566,142
============================================================
FUND EQUITY AT JULY 31, 1997 16,122,769 261,829 16,384,597
(13,547 LIMITED PARTNERSHIP UNITS)
NET ASSET VALUE PER UNIT AT JULY 31, 1997 1,190.13
</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 JUNE 30, 1997 AND 1996 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1997 1996
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 428,476 $ (1,233,169)
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS 1,334,478 (681,161)
INTEREST INCOME 174,607 161,811
================ ================
1,937,561 (1,752,519)
EXPENSES:
BROKERAGE COMMISSIONS 276,985 239,073
MANAGEMENT FEE 144,990 150,774
PROFIT SHARE 203,035 (154,457)
OTHER ADMINISTRATIVE EXPENSES 9,600 14,500
================ ================
634,610 249,890
NET INCOME (LOSS) $ 1,302,951 $ (2,002,409)
NET GAIN TO GENERAL PARTNER $ 20,822 (29,705)
NET GAIN TO LIMITED PARTNER $ 1,282,129 (1,972,704)
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ 94.64 (135.02)
</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 OPERATIONS
FOR THE NINE MONTHS ENDED JULY 31, 1997 AND 1996 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1997 1996
------------------ -------------------
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 4,094,597 $ 254,333
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (222,289) 525,521
INTEREST INCOME 505,434 553,984
================== ===================
4,377,742 1,333,838
EXPENSES:
BROKERAGE COMMISSIONS 829,170 782,758
MANAGEMENT FEE 414,185 469,253
PROFIT SHARE 522,845 302,527
OTHER ADMINISTRATIVE EXPENSES 45,400 47,800
================== ===================
1,811,600 1,602,338
NET INCOME (LOSS) $ 2,566,142 $ (268,500)
NET GAIN TO GENERAL PARTNER $ 40,436 $ (6,549)
NET GAIN TO LIMITED PARTNER $ 2,525,706 $ (261,951)
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ 183.80 $ (29.77)
</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)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JULY 31, 1997 AND 1996 (UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) 2,566,142 (268,500)
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS (2,022,059) 2,966,129
INCREASE IN OTHER LIABILITIES (6,632) (48,000)
=============================================
TOTAL FUNDS PROVIDED 537,451 2,649,629
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 537,451 3,446,629
ADDITION OF LIMITED PARTNERSHIP UNITS 0 (797,000)
============================================
TOTAL FUNDS APPLIED 537,451 2,649,629
CHANGE IN CASH BALANCE 0 0
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FIANANCIAL STATEMENTS.
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<PAGE> 7
THE FUTURE FUND
(An Illinois Limited Partnership)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS
The financial information included herein, other than the condensed Statement
of Financial Condition as of October 31, 1996, has been prepared by
management without audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of July 31, 1997 has been derived
from the audited financial as of October 31, 1996. 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 statements 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> 8
THE FUTURE FUND
(An Illinois Limited Partnership)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS, Continued
Item 2. Management's discussion and analysis of Financial Condition,
and operating results for the nine months ended July 31, 1997
31-Jul-97 31-Oct-96
Ending Equity (Note A) 16,384,597 14,355,906
NOTE A:
Ending equity at July 31, 1997 is higher than ending equity at October
31, 1996 due to profitable trading during the period.
NOTE B:
Three months Three months
ending 7/31/97 ended 7/31/96
Open Trade Equity 1,334,478 (681,161)
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 7/31/97 is more than net unrealized
appreciation of contracts for the three months ended 7/31/96 due to more
profitable trading period.
NOTE C:
Nine months Nine months
ended 7/31/97 ended 7/31/96
Net Realized Trading Ga 4,094,597 254,333
Net realized trading gains on open futures and forward contracts for the months
ended 7/31/97 is larger than net realized trading gains on open futures and
forwards for the nine months ended 7/31/96 due to profitable trading period.
-8-
<TABLE> <S> <C>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> OCT-31-1996 OCT-31-1995
<PERIOD-START> OCT-31-1996 OCT-31-1995
<PERIOD-END> JUL-31-1997 JUL-31-1996
<CASH> 14,917,870 12,466,522
<RECEIVABLES> 1,968,342 2,353,208
<SECURITIES-RESALE> 0 44,422
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 16,886,211 14,864,152
<SHORT-TERM> 0 0
<PAYABLES> 501,613 508,246
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 16,384,598 14,355,906
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 16,886,211 14,864,152
<TRADING-REVENUE> 3,872,308 779,854
<INTEREST-DIVIDENDS> 505,434 553,984
<COMMISSIONS> (829,170) (782,758)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (982,430) (819,580)
<INCOME-PRETAX> 2,566,142 (268,500)
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,566,142 (268,500)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>