<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 JAN, 31 1998
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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/0 HEINOLD ASSET MANAGEMENT. INC.
ONE FINANCIAL PLACE
440 S. LASALLE ST-21 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
1
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
7/31/98 10/31/97
ASSETS: (UNAUDITED) (AUDITED)
<S> <C> <C>
CASH 0 0
EQUITY IN FUTURES TRADING ACCOUNTS:
UNITED STATES TREASURY SECURITIES, AT
COST PLUS ACCRUED INTEREST WHICH
APPROXIMATES MARKET 0 0
NET UNREALIZED APPRECIATION ON
OPEN FUTURES CONTRACTS 267,655 356,939
AMOUNT DUE FROM (TO) BROKER 12,396,946 14,663,044
-------------------------
12,664,601 15,019,983
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS 73,875 81,156
ACCRUED MANAGEMENT FEE 41,892 43,588
ACCRUED PROFIT SHARE 7,726 200,625
REDEMPTIONS PAYABLE 427,421 32,072
OTHER ACCRUED EXPENSES 297 7,502
-------------------------
551,210 364,943
PARTNERS' CAPITAL:
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT JULY 31, 1998 AND
OCTOBER 31, 1997, RESPECTIVELY 11,893,807 14,419,530
LIMITED PARTNERS, 11,917 AND 13,470 UNITS
EQUIVALENTS OUTSTANDING AT JULY 31,1998
AND OCTOBER 31, 1997, RESPECTIVELY 219,584 235,510
---------- ----------
TOTAL PARTNERS' CAPITAL 12,113,391 14,655,040
---------- ----------
12,664,601 15,019,983
========== ==========
NET ASSET VALUE PER UNIT OUTSTANDING 998.11 1,070.50
</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 OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 1998 AND 1997 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1998 1997
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 77,288 $ 428,476
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS 191,436 1,334,478
INTEREST INCOME 143,986 174,607
---------- ----------
412,710 1,937,561
EXPENSES:
BROKERAGE COMMISSIONS 227,454 276,985
MANAGEMENT FEE 128,605 144,990
PROFIT SHARE 21,412 203,035
OTHER ADMINISTRATIVE EXPENSES 13,310 9,600
---------- ----------
390,782 634,610
NET INCOME (LOSS) $ 21,928 $1,302,951
NET GAIN TO GENERAL PARTNER $ 302 $ 20,822
NET GAIN TO LIMITED PARTNER $ 21,626 $1,282,129
CHANGE IN NET ASSET VALUE $ 1.37 $ 94.64
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-3-
<PAGE> 4
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED JULY 31, 1998 AND 1997 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1998 1997
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 87,409 $ 4,094,597
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (289,889) (222,289)
INTEREST INCOME 482,995 505,434
----------- -----------
280,515 4,377,742
EXPENSES:
BROKERAGE COMMISSIONS 723,743 829,170
MANAGEMENT FEE 404,891 414,185
PROFIT SHARE 53,710 522,845
OTHER ADMINISTRATIVE EXPENSES 36,301 45,400
----------- -----------
1,218,645 1,811,600
NET INCOME (LOSS) $ (938,131) $ 2,566,142
NET GAIN TO GENERAL PARTNER $ (15,926) $ 40,436
NET GAIN TO LIMITED PARTNER $ (922,205) $ 2,525,706
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ (72.39) $ 183.80
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-4-
<PAGE> 5
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED JULY 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
-------------- ------------ ------------
<S> <C> <C> <C>
FUND EQUITY AT OCTOBER 31, 1997 14,419,530 235,510 14,655,040
(13,470 LIMITED PARTNERSHIP UNITS)
REDEMPTION OF 1,553 LIMITED PARTNERSHIP UNITS (1,603,519) (1,603,519)
NET INCOME (922,205) (15,926) (938,131)
-------------------------------------------
FUND EQUITY AT JULY 31,1998 11,893,807 219,584 12,113,391
(11,917 LIMITED PARTNERSHIP UNITS)
NET ASSET VALUE PER UNIT AT APRIL 30:1998 998.11
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-5-
<PAGE> 6
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JULY 31, 1998 AND 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) (938,131) 2,566,142
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS 2,355,383 (2,022,059)
INCREASE IN OTHER LIABILITIES 0 (6,632)
---------------------------
TOTAL FUNDS PROVIDED 1,417,252 537,451
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 1,208,170 537,451
DECREASE IN OTHER LIABILITIES 209,082 0
---------------------------
TOTAL FUNDS APPLIED 1,417,252 537,451
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, Continued
Item 2, Management's discussion and analysis of Financial Condition, and
operating results for the nine months ended July 31, 1998
31-Jul-98 31-Oct-97
Ending Equity(Note A) 12,113,391 14,655,040
NOTE A:
Ending equity at July 31,1998 is lower than ending equity at October 31, 1997
due to redemption of limited parthership units and unprofitable trading.
NOTE B:
Three months Three months
ended 7/31/98 ended 7/31/97
Increase (decrease) in 191,436 1,334,478
open trade equity
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 7/31/98 is less than net unrealized
appreciation on open futures contracts for the three months ended 7/31/97 due to
less profitable trading during the period.
NOTE C:
Nine months Nine months
ended 7/31/98 ended 7/31/97
Increase decrease in (289,889) (222,289)
open trade equity
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the nine months ended 7/31/98 is less than net unrealized
appreciation on open futures contracts for the nine months ended 7/31/97 due to
less profit taking during the period.
7
<TABLE> <S> <C>
<ARTICLE> BD
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> OCT-31-1997 OCT-31-1996
<PERIOD-START> OCT-31-1996 OCT-31-1995
<PERIOD-END> JUL-31-1998 JUL-31-1997
<EXCHANGE-RATE> 1 1
<CASH> 12,396,946 14,663,044
<RECEIVABLES> 267,655 356,939
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 12,664,601 15,019,983
<SHORT-TERM> 0 0
<PAYABLES> 551,210 364,943
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 12,113,391 14,655,040
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 12,664,601 15,019,983
<TRADING-REVENUE> (202,480) 3,872,308
<INTEREST-DIVIDENDS> 482,995 505,434
<COMMISSIONS> (723,743) (829,170)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (494,902) (982,430)
<INCOME-PRETAX> (938,131) 2,566,142
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (938,131) 2,566,142
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
