<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 1999
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/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
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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>
1/31/99 10/31/98
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 322,803 767,691
AMOUNT DUE FROM (TO) BROKER 12,827,923 13,277,635
----------------------------------
13,150,726 14,045,326
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS $ 76,698 $ 81,812
ACCRUED MANAGEMENT FEE 43,363 46,034
ACCRUED PROFIT SHARE 4,372 83,648
REDEMPTIONS PAYABLE 131,558 45,801
OTHER ACCRUED EXPENSES 2,562 20,417
----------------------------------
258,553 277,712
PARTNERS' CAPITAL:
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT JAN 31, 1999 AND
OCTOBER 31, 1998, RESPECTIVELY 242,748 13,515,710
LIMITED PARTNERS, 11,464 AND 11,804 UNITS
EQUIVALENTS OUTSTANDING AT JAN 31,1999
AND OCTOBER 31, 1998, RESPECTIVELY 12,649,424 251,904
--------------- ---------------
TOTAL PARTNERS' CAPITAL 12,892,172 13,767,614
--------------- ---------------
$ 13,150,726 $ 14,045,326
=============== ===============
NET ASSET VALUE PER UNIT OUTSTANDING $ 1,103.40 $ 1,145.02
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED JAN 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
-------------- -------------- --------------
<S> <C> <C> <C>
FUND EQUITY AT OCTOBER 31, 1998 $ 13,515,710 $ 251,904 $ 13,767,614
(11,804 LIMITED PARTNERSHIP UNITS)
REDEMPTION OF 340 LIMITED PARTNERSHIP UNITS (383,417) (383,417)
NET INCOME (482,869) (9,156) (492,024)
-------------------------------------------------
FUND EQUITY AT JAN 31,1999 $ 12,649,424 $ 242,748 $ 12,892,172
(11,464 LIMITED PARTNERSHIP UNITS)
NET ASSET VALUE PER UNIT AT JAN 31, 1999 $ 1,103.40
</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 THREE MONTHS ENDED JAN 31, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1998 1998
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 232,590 $ 433,231
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (446,048) (87,315)
INTEREST INCOME 124,863 168,593
-------------- -----------
(88,594) 514,510
EXPENSES:
BROKERAGE COMMISSIONS 239,056 254,171
MANAGEMENT FEE 134,337 140,013
PROFIT SHARE 15,036 25,141
OTHER ADMINISTRATIVE EXPENSES 15,000 6,200
-------------- -----------
403,430 425,525
NET INCOME (LOSS) $ (492,024) $ 88,985
NET GAIN TO GENERAL PARTNER $ (9,156) $ 1,468
NET GAIN TO LIMITED PARTNER $ (482,869) $ 87,517
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ (41.62) $ 6.67
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-4-
<PAGE> 5
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JAN 31, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) (492,024) 88,986
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS 0 288,132
INCREASE IN OTHER LIABILITIES 894,600 0
---------------------
TOTAL FUNDS PROVIDED 402,576 377,118
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 383,417 317,370
DECREASE IN OTHER LIABILITIES 19,159 59,748
---------------------
TOTAL FUNDS APPLIED 402,576 377,118
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
The financial information included herein, other than
the condensed Statement of Financial Condition as of
October 31,1998, has been prepared by management without
audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of
January 31,1999 has been derived from the audited financial
as of October 31, 1998. The interim financial statements
do not include all the disclosures contained in the annual
financial statement. 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.
6
<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 three months ended Jan 31, 1999
31-Jan-99 31-Oct-98
Ending Equity(Note A) 12,892,172 13,767,614
NOTE A:
Ending equity at Jan 31,1999 is lower than ending equity at October
31, 1998 due to redemption of limited partnership units and unprofitable
trading during the periods.
NOTE B:
Three months Three months
ended 1/31/99 ended 1/31/98
Increase decrease in (446,048) (87,315)
open trade equity
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 1/31/99 is less than net unrealized
appreciation on open futures contracts for the three months ended 1/31/98 due
to less profitable trading during the period.
7
<TABLE> <S> <C>
<ARTICLE> BD
<CURRENCY> U.S. DOLLAR
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> OCT-31-1998 OCT-31-1997
<PERIOD-START> OCT-31-1998 OCT-31-1997
<PERIOD-END> JAN-31-1999 JAN-31-1998
<EXCHANGE-RATE> 1 1
<CASH> 12,827,923 13,277,635
<RECEIVABLES> 322,803 767,691
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 13,150,726 14,045,326
<SHORT-TERM> 0 0
<PAYABLES> 258,553 277,712
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
12,892,173 13,767,614
0 0
<COMMON> 0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 13,150,726 14,045,326
<TRADING-REVENUE> (213,458) 345,917
<INTEREST-DIVIDENDS> 124,863 168,593
<COMMISSIONS> (239,056) (254,171)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (164,374) (171,354)
<INCOME-PRETAX> (492,024) 88,985
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (492,024) 88,985
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>