<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 April 30, 1997
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>
APRIL 30, 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 642,419 2,353,208
AMOUNT DUE FROM (TO) BROKER 14,940,802 12,466,522
-------------- --------------
15,583,221 14,864,152
-------------- --------------
$ 15,583,221 $ 14,864,152
============== ==============
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS
PAYABLE $ 90,861 $ 86,669
ACCRUED MANAGEMENT FEE 42,473 55,381
ACCRUED PROFIT SHARE 120,955 288,923
REDEMPTIONS PAYABLE 43,611 70,695
OTHER ACCRUED EXPENSES 7,106 6,578
-------------- --------------
$ 305,006 $ 508,246
-------------- --------------
PARTNERS' CAPITAL:
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT APRIL 30, 1997 AND
OCTOBER 31, 1996, RESPECTIVELY 241,007 221,393
LIMITED PARTNERS, 13,727 AND 14,046 UNITS
EQUIVALENTS OUTSTANDING AT JANUARY 31, 1997
AND OCTOBER 31, 1996, RESPECTIVELY 15,037,208 14,134,513
-------------- --------------
TOTAL PARTNERS' CAPITAL 15,278,215 14,355,906
-------------- --------------
$ 15,583,221 $ 14,864,152
============== ==============
NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST $ 1,095.49 $ 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 SIX MONTHS ENDED APRIL 30, 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 319 LIMITED
PARTNERSHIP UNITS (340,884) (340,884)
NET GAIN (LOSS) IN FUND EQUITY
FROM OPERATIONS 1,243,578 19,614 1,263,192
----------- ----------- -----------
FUND EQUITY AT APRIL 30,1997 $15,037,208 $ 241,007 $15,278,215
(13,727 LIMITED PARTNERSHIP UNITS) =========== =========== ===========
NET ASSET VALUE PER UNIT AT
APRIL 30, 1997: $ 1,095.49
===========
</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 APRIL 30, 1997 AND 1996 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1997 1996
---------- ----------
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $1,300,139 $1,118,374
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (194,367) 242,373
INTEREST INCOME 172,063 188,180
---------- ----------
1,277,836 1,548,927
---------- ----------
EXPENSES:
BROKERAGE COMMISSIONS 277,051 267,868
MANAGEMENT FEE 131,951 158,054
PROFIT SHARE 195,974 285,550
OTHER ADMINISTRATIVE EXPENSES 22,000 24,300
---------- ---------
626,976 735,772
---------- ---------
NET INCOME (LOSS) $ 650,860 $ 813,155
========== =========
NET GAIN ALLOCATED TO
GENERAL PARTNER $ 10,184 $ 11,745
========== =========
NET GAIN ALLOCATED TO
LIMITED PARTNERS $ 640,676 $ 801,410
========== =========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ 46.29 $ 53.38
========== =========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-4-
<PAGE> 5
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 AND 1996 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1997 1996
----------- -----------
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 3,666,121 $ 1,487,502
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (1,556,767) 1,206,682
INTEREST INCOME 330,827 392,173
----------- -----------
2,440,182 3,086,357
----------- -----------
EXPENSES:
BROKERAGE COMMISSIONS 552,185 543,685
MANAGEMENT FEE 269,195 318,479
PROFIT SHARE 319,810 456,984
OTHER ADMINISTRATIVE EXPENSES 35,800 33,300
----------- -----------
1,176,990 1,352,448
----------- -----------
NET INCOME (LOSS) $ 1,263,192 $ 1,733,909
=========== ===========
NET GAIN ALLOCATED TO
GENERAL PARTNER $ 19,614 $ 23,156
=========== ===========
NET GAIN ALLOCATED TO
LIMITED PARTNERS $ 1,243,578 $ 1,710,753
=========== ===========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ 89.16 $ 105.25
=========== ===========
</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 SIX MONTHS ENDED APRIL 30, 1997 AND 1996 (UNAUDITED)
-------
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) 1,263,192 1,733,909
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS (719,069) (259,979)
INCREASE IN OTHER LIABILITIES 0 779,517
---------- ----------
TOTAL FUNDS PROVIDED 544,123 2,253,447
---------- ----------
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 340,884 3,050,447
ADDITION OF LIMITED PARTNERSHIP UNITS 0 (797,000)
INCREASE IN EQUITY IN COMMODITY FUTURES
TRADING ACCOUNTS
(INCREASE) DECREASE IN OTHER LIABILITIES 203,240 0
---------- ----------
TOTAL FUNDS APPLIED 544,124 2,253,447
---------- ----------
CHANGE IN CASH BALANCE $ (0) 0
---------- ----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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<PAGE> 7
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, 1996, has been prepared by
management without audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of April 30, 1997 has been
derived from the audited financial statements 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
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> 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 six months ended April 30, 1997
30-Apr-97 31-Oct-96
Ending Equity (Note A) 15,278,215 14,355,906
NOTE A:
Ending equity at April 30, 1997 is higher than ending equity at October
31, 1996 due to profitable trading during the period.
NOTE B:
Three months Three months
ended 4/30/97 ended 4/30/96
Increase (decrease) in net (194,367) 242,373
unrealized appreciation on
open futures and forward contracts
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 4/30/97 is less than net unrealized
appreciation on open futures contracts for the three months ended 4/30/96 due
to less profitable trading during the period.
NOTE C:
Six months Six months
ended 4/30/97 ended 4/30/96
Increase (decrease) in net (1,556,767) 1,206,682
unrealized appreciation on
open futures and forward contracts
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the six months ended 4/30/97 is less than net unrealized
appreciation on open futures contracts for the six months ended 4/30/96 due to
less profitable trading during the period.
8
<PAGE> 9
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
Lee E. Meyer
Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> OCT-31-1996 OCT-31-1995
<PERIOD-START> OCT-31-1996 OCT-31-1995
<PERIOD-END> APR-30-1997 JAN-31-1996
<CASH> 14,940,802 12,466,522
<RECEIVABLES> 642,419 2,353,208
<SECURITIES-RESALE> 0 44,422
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 15,583,221 14,864,152
<SHORT-TERM> 0 0
<PAYABLES> 305,006 508,246
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 15,278,215 14,355,906
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 15,583,221 14,864,152
<TRADING-REVENUE> 2,109,354 2,694,185
<INTEREST-DIVIDENDS> 330,827 392,173
<COMMISSIONS> (552,185) (543,685)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (624,805) (808,763)
<INCOME-PRETAX> 1,263,191 1,733,910
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,263,191 1,733,910
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
