<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 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]
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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>
7/30/99 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 167,355 767,691
AMOUNT DUE FROM (TO) BROKER 12,344,000 13,277,635
----------- -----------
12,511,355 14,045,326
LIABILITIES & PARTNERS' CAPITAL
ACCRUED BROKERAGE COMMISSIONS $ 72,853 $ 81,812
ACCRUED MANAGEMENT FEE 41,161 46,034
ACCRUED PROFIT SHARE 0 83,648
REDEMPTIONS PAYABLE 43,697 45,801
OTHER ACCRUED EXPENSES 22,291 20,417
----------- -----------
180,001 277,712
PARTNERS' CAPITAL:
LIMITED PARTNERS, 10,845 AND 11,804 UNITS
EQUIVALENTS OUTSTANDING AT JULY 31,1999
AND OCTOBER 31, 1998, RESPECTIVELY 12,086,177 13,515,710
GENERAL PARTNER, 220 UNIT EQUIVALENTS
OUTSTANDING AT JULY 31, 1999 AND
OCTOBER 31, 1998, RESPECTIVELY 245,176 251,904
----------- -----------
TOTAL PARTNERS' CAPITAL 12,331,353 13,767,614
----------- -----------
$12,511,355 $14,045,326
=========== ===========
NET ASSET VALUE PER UNIT OUTSTANDING $ 1,114.44 $ 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 JULY 31, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1999 1998
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 460,038 $ 77,288
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (472,548) 191,436
INTEREST INCOME 98,611 143,986
--------- ---------
86,101 412,710
EXPENSES:
BROKERAGE COMMISSIONS 221,263 227,454
MANAGEMENT FEE 124,782 128,605
PROFIT SHARE 5,136 21,412
OTHER ADMINISTRATIVE EXPENSES 11,400 13,310
--------- ---------
362,581 390,782
NET INCOME (LOSS) $(276,480) $ 21,928
NET GAIN TO GENERAL PARTNER $ (5,404) $ 302
NET GAIN TO LIMITED PARTNER $(271,076) $ 21,626
CHANGE IN NET ASSET VALUE $ (24.56) $ 1.37
</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 NINE MONTHS ENDED JULY 31, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
REVENUES: 1999 1998
<S> <C> <C>
NET REALIZED TRADING GAINS ON CLOSED
FUTURES AND FORWARD CONTRACTS $ 1,055,573 $ 87,409
INCREASE (DECREASE) IN NET UNREALIZED APPRECIATION
ON OPEN FUTURES AND FORWARD CONTRACTS (601,895) (289,889)
INTEREST INCOME 322,587 482,995
----------- -----------
776,265 280,515
EXPENSES:
BROKERAGE COMMISSIONS 690,489 723,743
MANAGEMENT FEE 388,891 404,891
PROFIT SHARE 21,155 53,710
OTHER ADMINISTRATIVE EXPENSES 37,800 36,301
----------- -----------
1,138,335 1,218,645
NET INCOME (LOSS) $ (362,070) $ (938,131)
NET GAIN TO GENERAL PARTNER $ (355,342) $ (15,926)
NET GAIN TO LIMITED PARTNER $ (6,728) $ (922,205)
CHANGE IN NET ASSET VALUE (ENTIRE YEAR) $ (30.58) $ (72.39)
</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 PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED JULY 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 959 LIMITED PARTNERSHIP UNITS (1,074,191) (1,074,191)
NET INCOME (355,342) (6,728) (362,070)
------------ ------------ ------------
FUND EQUITY AT JULY 31,1999 $ 12,086,177 $ 245,176 $ 12,331,353
(10,845 LIMITED PARTNERSHIP UNITS)
NET ASSET VALUE PER UNIT AT JULY 31:1999 $ 1,114.44
</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, 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
FUNDS PROVIDED BY:
NET INCOME (LOSS) (362,069) (938,131)
(INCREASE) DECREASE IN EQUITY IN COMMODITY
FUTURES AND FORWARD TRADING ACCOUNTS 1,533,971 2,355,383
INCREASE IN OTHER LIABILITIES 0 0
--------- ---------
TOTAL FUNDS PROVIDED 1,171,902 1,417,252
FUNDS APPLIED TO:
REDEMPTION OF LIMITED PARTNERSHIP UNITS 1,074,191 1,208,170
DECREASE IN OTHER LIABILITIES 97,711 209,082
--------- ---------
TOTAL FUNDS APPLIED 1,171,902 1,417,252
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
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 July 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.
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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 three months ended July 31, 1999
<TABLE>
<CAPTION>
31-Jul-99 31-Oct-98
<S> <C> <C>
Ending Equity(Note A) 12,331,353 13,767,614
</TABLE>
NOTE A:
Ending equity at July 31,1999 is lower than ending equity at October 31, 1998
due to unprofitable trading activity and redemption of limited partnership units
during the period.
NOTE B:
<TABLE>
<CAPTION>
Three months Three months
ended 7/31/99 ended 7/31/98
<S> <C> <C>
Increase (decrease) in (472,548) 191,436
open trade equity
</TABLE>
Increase (decrease) in net unrealized appreciation on open futures and forward
contracts for the three months ended 7/31/99 is less than net unrealized
appreciation on open futures contracts for the three months ended 7/31/98 due to
less profitable trading during the period.
NOTE C:
<TABLE>
<CAPTION>
Nine months Nine months
ended 7/31/99 ended 7/31/98
<S> <C> <C>
Net Realized Trading Gains 1,055,573 87,409
</TABLE>
Increase (decrease) in net realized trading gains on open futures and forward
contracts for the nine months ended 7/31/99 is more than net unrealized
appreciation on open futures contracts for the nine months ended 7/31/98 due to
more profitable trading during the period.
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<TABLE> <S> <C>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> OCT-31-1998 OCT-31-1997
<PERIOD-START> OCT-31-1998 OCT-31-1997
<PERIOD-END> JUL-31-1999 JUL-31-1998
<CASH> 12,344,000 13,277,635
<RECEIVABLES> 167,355 767,691
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 12,511,355 14,045,326
<SHORT-TERM> 0 0
<PAYABLES> 180,001 277,712
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 12,331,354 13,767,614
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 12,511,355 14,045,326
<TRADING-REVENUE> 453,678 (202,480)
<INTEREST-DIVIDENDS> 322,587 482,995
<COMMISSIONS> (690,489) (723,743)
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> (447,846) (494,903)
<INCOME-PRETAX> (362,070) (938,131)
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (362,070) (938,131)
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
