<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, 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/O 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 NO
--- ---
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FUTURE FUND
(An Illinois Limited Partnership)
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
4/30/99 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 637,340 767,691
AMOUNT DUE FROM (TO) BROKER 12,379,419 13,277,635
-------------------------
13,016,759 14,045,326
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS $ 75,853 $ 81,812
ACCRUED MANAGEMENT FEE 42,834 46,034
ACCRUED PROFIT SHARE 1,308 83,648
REDEMPTIONS PAYABLE 29,876 45,801
OTHER ACCRUED EXPENSES 13,329 20,417
-------------------------
163,200 277,712
PARTNERS' CAPITAL:
LIMITED PARTNERS, 11,065 AND 11,804 UNITS
EQUIVALENTS OUTSTANDING AT APRIL 30,1999
AND OCTOBER 31, 1998, RESPECTIVELY 12,602,979 13,515,710
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT APRIL 30, 1999 AND
OCTOBER 31, 1998, RESPECTIVELY 250,580 251,904
-------------------------
TOTAL PARTNERS' CAPITAL 12,853,559 13,767,614
-------------------------
$13,016,759 $14,045,326
=========================
NET ASSET VALUE PER UNIT OUTSTANDING $ 1,139.00 $ 1,145.02
</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 APRIL 30, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1999 1998
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 362,946 $ (423,111)
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS 316,700 (394,010)
INTEREST INCOME 99,112 170,416
----------- -----------
778,758 (646,705)
EXPENSES:
BROKERAGE COMMISSIONS 230,169 242,118
MANAGEMENT FEE 129,772 136,272
PROFIT SHARE 982 7,158
OTHER ADMINISTRATIVE EXPENSES 11,400 16,791
----------- -----------
372,323 402,340
NET INCOME (LOSS) $ 406,435 $(1,049,044)
NET GAIN TO GENERAL PARTNER $ 7,832 $ (17,695)
NET GAIN TO LIMITED PARTNER $ 398,603 $(1,031,349)
CHANGE IN NET ASSET VALUE $ 35.60 $ (80.43)
</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 SIX MONTHS ENDED APRIL 30, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES:
1999 1998
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 595,535 $ 10,120
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (129,347) (481,325)
INTEREST INCOME 223,975 339,009
--------- ---------
690,163 (132,195)
EXPENSES:
BROKERAGE COMMISSIONS 469,226 496,289
MANAGEMENT FEE 264,109 276,285
PROFIT SHARE 16,019 32,299
OTHER ADMINISTRATIVE EXPENSES 26,400 22,991
--------- ---------
775,753 827,864
NET INCOME (LOSS) $ (85,590) $(960,059)
NET GAIN TO GENERAL PARTNER $ (1,324) $ (16,227)
NET GAIN TO LIMITED PARTNER $ (84,266) $(943,832)
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ (6.02) $ (73.76)
</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 SIX MONTHS ENDED APRIL 30, 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 739 LIMITED PARTNERSHIP UNITS (828,466) (828,466)
NET INCOME (84,266) (1,324) (85,590)
--------------------------------------------
FUND EQUITY AT APRIL 30,1999 $ 12,602,979 $ 250,580 $ 12,853,559
(11,065 LIMITED PARTNERSHIP UNITS)
NET ASSET VALUE PER UNIT AT APRIL 30:1999 $ 1,139.00
</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 SIX MONTHS ENDED APRIL 30, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1998
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) (85,589) (960,058)
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS 1,028,567 2,052,482
INCREASE IN OTHER LIABILITIES 0 0
-----------------------
TOTAL FUNDS PROVIDED 942,978 1,092,424
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 828,466 927,567
DECREASE IN OTHER LIABILITIES 114,512 164,857
-----------------------
TOTAL FUNDS APPLIED 942,978 1,092,424
CHANGE IN CASH BALANCE 0 0
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS
-6-
<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 31,1998, has been prepared by management
without audit by Independent Certified Public Accountants. The condensed
Statement of Financial Condition as of April 30,1999 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.
7
<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 three months ended April 30, 1999
30-Apr-99 31-Oct-98
Ending Equity(Note A) 12,853,559 13,767,614
NOTE A:
Ending equity at April 30,1999 is lower than ending equity at October
31, 1998 due to redemption of limited parthership units during the period.
NOTE B:
Three months Three months
ended 4/30/99 ended 4/30/98
Increase decrease in 316,700 (394,010)
open trade equity
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 4/30/99 is more than net unrealized
appreciation on open futures contracts for the three months ended 4/30/98 due to
more profitable trading during the period.
NOTE C:
Six months Six months
ended 4/30/99 ended 4/30/98
Increase decrease in (129,347) (481,325)
open trade equity
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the six months ended 4/30/99 is more than net unrealized
appreciation on open futures contracts for the six months ended 4/30/98 due to
more profitable trading during the period.
8
<TABLE> <S> <C>
<ARTICLE> BD
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> OCT-31-1998 OCT-31-1997
<PERIOD-START> OCT-31-1998 OCT-31-1997
<PERIOD-END> APR-30-1999 APR-30-1998
<EXCHANGE-RATE> 1 1
<CASH> 12,379,419 13,277,635
<RECEIVABLES> 637,340 767,691
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 13,016,759 14,045,326
<SHORT-TERM> 0 0
<PAYABLES> 163,200 277,712
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
12,853,559 13,767,614
0 0
<COMMON> 0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 13,016,759 14,045,326
<TRADING-REVENUE> 466,188 (471,205)
<INTEREST-DIVIDENDS> 223,975 339,009
<COMMISSIONS> (469,226) (496,289)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (306,527) (331,574)
<INCOME-PRETAX> (85,590) (960,059)
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (85,590) (960,059)
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
