UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Period ended June 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 No. 0-12431
COLUMBIA FUTURES FUND
(Exact name of registrant as specified in its charter)
New York 13-3103617
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(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
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 1997 (Unaudited) and December 31, 1996..........2
Statements of Operations for the Quarters Ended
June 30, 1997 and 1996 (Unaudited).......................3
Statements of Operations for the Six Months Ended
June 30, 1997 and 1996 (Unaudited).......................4
Statements of Changes in Partners' Capital for
the Six Months Ended June 30, 1997 and 1996
(Unaudited)..............................................5
Statements of Cash Flows for the Six Months Ended
June 30, 1997 and 1996 (Unaudited).......................6
Notes to Financial Statements (Unaudited).............7-12
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations........................................13-18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.................................19-20
Item 5. Other Information....................................20
Item 6. Exhibits and Reports on Form 8-K.....................21
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 7,696,356 8,233,513
Net unrealized gain on open contracts 333,273 365,976
Total Trading Equity 8,029,629 8,599,489
Interest receivable (DWR) 26,637 28,574
Due from DWR 8,558 -
Total Assets 8,064,824 8,628,063
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Administrative expenses payable 71,134 67,548
Accrued brokerage commissions (DWR) 27,845 16,631
Accrued management fees 26,457 28,381
Redemptions payable 24,180 23,091
Accrued transaction fees and costs 2,156 1,324
Incentive fee payable - 150,103
Total Liabilities 151,772 287,078
Partners' Capital
Limited Partners ( 3,348.941 and
3,512.282 Units, respectively) 7,683,618 8,110,079
General Partner (100 Units) 229,434 230,906
Total Partners' Capital 7,913,052 8,340,985
Total Liabilities and Partners' Capital 8,064,824 8,628,063
NET ASSET VALUE PER UNIT 2,294.34 2,309.06
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (295,122) 353,139
Net change in unrealized (156,466) (9,876)
Total Trading Results (451,588) 343,263
Interest Income (DWR) 86,452 77,046
Total Revenues (365,136) 420,309
EXPENSES
Brokerage commissions (DWR) 96,435 101,801
Management fees 82,184 72,952
Administrative expenses 15,000 16,000
Transaction fees and costs 8,927 7,806
Total Expenses 202,546 198,559
NET INCOME (LOSS) (567,682) 221,750
NET INCOME (LOSS) ALLOCATION
Limited Partners (551,359) 215,993
General Partner (16,323) 5,757
NET INCOME (LOSS) PER UNIT
Limited Partners (163.23) 57.56
General Partner (163.23) 57.56
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 290,856 480,299
Net change in unrealized (32,703) (332,929)
Total Trading Results 258,153 147,370
Interest Income (DWR) 176,003 153,224
Total Revenues 434,156 300,594
EXPENSES
Brokerage commissions (DWR) 175,792 201,226
Management fees 169,185 147,291
Incentive fees 76,966 -
Administrative expenses 32,000 31,000
Transaction fees and costs 15,499 15,975
Total Expenses 469,442 395,492
NET LOSS (35,286) (94,898)
NET LOSS ALLOCATION
Limited Partners (33,814) (92,610)
General Partner (1,472) (2,288)
NET LOSS PER UNIT
Limited Partners (14.72) (22.88)
General Partner (14.72) (22.88)
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
Partners' Capital,
December 31, 1995 3,964.982 $7,493,781 $193,889 $7,687,670
Net Loss - (92,610) (2,288) (94,898)
Redemptions (175.405) (331,888) - (331,888)
Partners' Capital,
June 30, 1996 3,789.577 7,069,283 191,601 7,260,884
Partner's Capital,
December 31, 1996 3,612.282 $8,110,079 $230,906 $8,340,985
Net Loss - (33,814) (1,472) (35,28
6)
Redemptions (163.341) (392,647) -
(392,647)
Partners' Capital,
June 30, 1997 3,448.941 $7,683,618 $229,434 $7,913,052
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (35,286) (94,898)
Noncash item included in net loss:
Net change in unrealized 32,703 332,929
(Increase) decrease in operating assets:
Interest receivable (DWR) 1,937 2,357
Due from DWR (8,558) (4,915)
Increase (decrease) in operating liabilities:
Administrative expenses payable 3,586 (32,692)
Accrued brokerage commissions (DWR) 11,214 4,150
Accrued management fees (1,924) (1,487)
Accrued transaction fees and costs832 254
Incentive fee payable (150,103) -
Net cash provided by (used for) operating activities (145,599)
205,698
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable1,089
(18,990)
Redemptions of units (392,647) (331,888)
Net cash used for financing activities(391,558) (350,878)
Net decrease in cash (537,157) (145,180)
Balance at beginning of period 8,233,513 7,028,474
Balance at end of period 7,696,356 6,883,294
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The financial statements include, in the opinion of management,
all adjustments necessary for a fair presentation of the results
of operations and financial condition. The financial statements
and condensed notes herein should be read in conjunction with the
Partnership's December 31, 1996 Annual Report on Form 10-K.
1. Organization
Columbia Futures Fund (the "Partnership") is a limited
partnership organized to engage in the speculative trading of
commodity futures and forward contracts on foreign currencies
(collectively, "futures interests"). The general partner for the
Partnership is Demeter Management Corporation ("Demeter"). The
commodity broker is Dean Witter Reynolds Inc. ("DWR"). The
trading manager who makes all trading decisions for the
Partnership is John W. Henry & Company, Inc. ("JWH"). Both
Demeter and DWR are wholly owned subsidiaries of Morgan Stanley,
Dean Witter, Discover & Co. ("MSDWD").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity
trading accounts to meet margin requirements as needed. DWR pays
interest on these funds based on current 13-week U.S. Treasury
Bill rates. Brokerage expenses incurred by the Partnership are
paid to DWR.
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities, currencies, petroleum and
precious metals. Futures and forwards represent contracts for
delayed delivery of an instrument at a specified date and price.
Risk arises from changes in the value of these contracts and the
potential inability of counterparties to perform under the terms
of the contracts. There are numerous factors which may
significantly influence the market value of these contracts,
including interest rate volatility. At June 30, 1997 and
December 31, 1996, open contracts were:
Contract or Notional Amount
June 30, 1997 December 31, 1996
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 25,027,000
5,890,000
Commitments to Sell 2,919,000 5,281,000
Commodity Futures:
Commitments to Purchase 2,138,000 1,723,000
Commitments to Sell 8,524,000 5,004,000
Foreign Futures:
Commitments to Purchase 9,801,000 3,327,000
Commitments to Sell 5,226,000 4,040,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 8,172,000 9,367,000
Commitments to Sell 6,144,000 6,091,000
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward
commitments to purchase and to sell the same currency on the same
date in the future. These commitments are economically
offsetting, but are not offset in the forward market until the
settlement date.
The net unrealized gains on open contracts are reported as a
component of "Equity in Commodity futures trading accounts" on
the Statements of Financial Condition and totaled $333,273 and
$365,976 at June 30, 1997 and December 31, 1996, respectively.
Of the $333,273 net unrealized gain on open contracts at June 30,
1997, $351,214 related to exchange-traded futures contracts and
$(17,941) related to off-exchange-traded forward currency
contracts. Of the $365,976 net unrealized gain on open contracts
at December 31, 1996, $381,231 related to exchange-traded futures
contracts and $(15,255) related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1997 and December 31, 1996 mature through June 1998 and
September 1997, respectively. Off-exchange-traded forward cur-
rency contracts held by the Partnership at June 30, 1997 and
December 31, 1996 mature through September 1997 and March 1997,
respectively. The contract amounts in the above table represent
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Partnership's extent of involvement in the particular class
of financial instrument, but not the credit risk associated with
counterparty nonperformance. The credit risk associated with
these instruments is limited to the amounts reflected in the
Partnership's Statements of Financial Condition.
The Partnership also has credit risk because DWR acts as the
futures commission merchant or the sole counterparty, with
respect to most of the Partnership's assets. Exchange-traded
futures contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. DWR, as the
futures commission merchant for all of the Partnership's exchange-
traded-futures contracts, is required pursuant to regulations of
the Commodity Futures Trading Commission ("CFTC") to segregate
from its own assets and for the sole benefit of its commodity
customers, all funds held by DWR with respect to exchange-traded
futures contracts including an amount equal to the net unrealized
gain on all open futures contracts, which funds totaled
$8,047,570 and $8,614,744 at June 30, 1997 and December 31, 1996,
respectively. With respect to the Partnership's off-exchange-
traded forward currency contracts, there are no daily settlements
of variations in value nor is there any requirement that an
amount equal to the net unrealized gain on open forward contracts
be segregated. With respect to those off-exchange-traded forward
currency contracts,
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Partnership is at risk to the ability of DWR, the sole
counterparty on all of such contracts, to perform.
For the six months ended June 30, 1997 and the year ended
December 31, 1996, the average fair value of financial
instruments held for trading purposes was as follows:
June 30, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 7,016,000 8,280,000
Commodity Futures 3,750,000 4,647,000
Foreign Futures 5,483,000 3,116,000
Off-Exchange-Traded Forward
Currency Contracts 11,718,000 12,947,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 7,988,000 9,207,000
Commodity Futures 6,451,000 5,433,000
Foreign Futures 8,788,000 3,870,000
Off-Exchange-Traded Forward
Currency Contracts 13,160,000 15,230,000
4. Subsequent Event
On July 31, 1997, DWR closed the sale of its institutional
futures business and foreign currency trading operations to Carr
Futures
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Inc. ("Carr"), a subsidiary of Credit Agricole Indosuez.
Following the sale, Carr became the counterparty on the
Partnership's foreign currency trades. However, during a
transition period of about three months, DWR will continue to
perform certain services relating to the Partnership's futures
trading including clearance. After such transition period, DWR
will continue to serve as a futures broker for the Partnership
with Carr providing execution and clearing services for the
Partnership's account.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in futures
interest trading accounts with DWR, and are used by the
Partnership as margin to engage in futures interest trading. DWR
holds such assets in either designated depositories or in
securities approved by the CFTC for investment of customer funds.
The Partnership's assets held by DWR may be used as margin solely
for the Partnership's trading. Since the Partnership's sole
purpose is to trade in futures interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investments in futures interests may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits". Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price of a particular futures interest
has increased or decreased by an amount equal to the "daily
limit", positions in such futures interest can neither be taken
nor liquidated unless traders are willing to effect trades at or
within the limit. Futures interest prices have occasionally
moved the daily limit for several consecutive days with little or
no trading. Such market conditions could prevent the Partnership
from promptly liquidating its futures interests and result in
<PAGE>
restrictions on redemptions. However, since the commencement of
trading by the Partnership, there has never been a time when
illiquidity has affected a material portion of the Partnership's
assets.
There is no limitation on daily price moves in trading of forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.
Capital Resources - The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions and sales of
additional Units of Limited Partnership Interest in the future
will affect the amount of funds available for investments in
futures interests in subsequent periods. As redemptions are at
the discretion of the Limited Partners, it is not possible to
estimate the amount and therefore the impact of future
redemptions.
Results of Operations
For the Quarter and Six Months Ended June 30, 1997
For the quarter ended June 30, 1997, the Partnership's total
trading losses net of including interest income were $365,136.
<PAGE>
During the second quarter, the Partnership posted a decrease in
Net Asset Value per Unit. Losses were recorded in the energy
markets as crude oil prices moved without consistent direction
during the quarter. In currencies, losses were recorded from
short Japanese yen positions as its value reversed sharply higher
relative to the U.S. dollar, after trending lower during a
majority of the first quarter. Smaller currency losses were
recorded from transactions involving the Singapore dollar during
May and June. In financial futures, trendless price movement in
Japanese government bond futures during a majority of the quarter
also resulted in losses. A portion of these losses was offset by
gains from long positions in Australian bond futures and global
stock index futures as prices in these markets trended higher
during May and June. In metals, profits were recorded from short
gold futures positions as gold prices moved lower during June.
Additional gains recorded from long coffee futures positions
during April and May and from short positions in agricultural
futures during June. Total expenses for the quarter were
$202,546, resulting in a net loss of $567,682. The value of an
individual Unit in the Partnership decreased from $2,457.57 at
March 31, 1997 to $2,294.34 at June 30, 1997.
For the six months ended June 30, 1997, the Partnership's total
trading revenues including interest income were $434,156. During
the first six months, the Partnership posted a decrease in Net
Asset Value per Unit. Losses were recorded in energy futures
trading as crude oil prices moved in a choppy pattern throughout
<PAGE>
most of the first six months of the year. Smaller losses were
recorded due to trendless price movement in Japanese government
bond futures during the second quarter. Losses were also
recorded in European and U.S. interest rate futures trading
during the first quarter as prices in these markets moved in a
similar pattern. These losses were partially offset by currency
gains recorded during the first quarter as the value of the U.S.
dollar strengthened relative to most other major currencies.
Additional gains were recorded in soft commodities as long coffee
futures positions profited from an upward trend during January
and February, as well as during April and May. Smaller gains in
metals from short gold futures positions, as gold prices declined
during January and June, contributed in offsetting a portion of
overall Partnership losses. Total expenses for the period were
$469,442, resulting in a net loss of $35,286. The value of an
individual Unit in the Partnership decreased from $2,309.06 at
December 31, 1996 to $2,294.34 at June 30, 1997.
For the Quarter and Six Months Ended June 30, 1996
For the quarter ended June 30, 1996, the Partnership's total
trading revenues including interest income were $420,309. During
the second quarter, the Partnership posted an increase in Net
Asset Value per Unit. The most significant trading gains during
the quarter were recorded in the currency markets as a decline in
the value of the German mark and Swiss franc relative to the U.S.
dollar resulted in profits for short German mark and Swiss franc
positions during April. Smaller gains were experienced from
<PAGE>
transactions involving the Japanese yen during May and June. In
the metals markets, gains were recorded from short gold, silver,
copper and aluminum futures positions during June as prices in
these markets moved lower. Trading gains recorded in the
agricultural markets in April and May from long corn futures
positions, added to the overall Fund gains for the quarter. In
soft commodities, gains recorded in May and June from trading
sugar futures more than offset losses in coffee, cotton and
cocoa. Trading losses were recorded throughout the quarter in the
financial futures markets from trendless price movement in global
interest rate and stock index futures. A reversal lower in crude
oil prices during May resulted in losses for the Fund's
previously established long positions, thus offsetting a portion
of overall Fund gains for the fiscal quarter. Total expenses for
the quarter were $198,559, resulting in net income of $221,750.
The value of an individual Unit in the Partnership increased from
$1,858.45 at March 31, 1996 to $1,916.01 at June 30, 1996.
For the six months ended June 30, 1996, the Partnership's total
trading revenues including interest income were $300,594. During
the first half of the year, the Partnership posted a decrease in
Net Asset Value per Unit. The most significant trading losses
were recorded in the financial futures and energy markets. In
the financial futures markets, losses were experienced in non-
U.S. interest rate and stock index futures trading during
February and throughout the second quarter. Gains experienced
from short U.S.
<PAGE>
interest rate positions between March and May offset a portion of
these losses. In the energy markets, losses were recorded in
crude oil futures as a result of a reversal in oil prices during
January, which was followed by choppy price movement during
February. A second reversal in oil prices during May resulted in
additional losses for the Fund. In soft commodities, losses from
trading coffee and cotton futures more than offset gains
experienced in sugar futures trading. Gains were recorded in the
currency markets from short Swiss franc positions during January
and April, as well as from transactions involving the Japanese
yen during January and March. Smaller gains were experienced
from transactions involving the Australian dollar during March
and May and the German mark during January and April. In the
metals markets, gains recorded in copper, gold and aluminum
futures also helped to mitigate overall Fund losses for the first
half of the year. In the agricultural markets, profits recorded
from long corn futures positions during April and May more than
offset losses experienced in soybean products as a result of
trendless price movement throughout the first quarter. Total
expenses for the period were $395,492, resulting in a net loss of
$94,898. The value of an individual Unit in the Partnership
decreased from $1,938.89 at December 31, 1995 to $1,916.01 at
June 30, 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997, similar
purported class actions were filed in the Superior Court of the
State of California, County of Los Angeles, on behalf of all
purchasers of interests in limited partnership commodity pools
sold by DWR. Named defendants include DWR, Demeter, Dean Witter
Futures & Currency Management, Inc., MSDWD (all such parties
referred to hereafter as the "Dean Witter Parties"), certain
limited partnership commodity pools of which Demeter is the
general partner, and certain trading advisors (including JWH) to
those pools. On June 16, 1997, the plaintiffs in the above
actions filed a consolidated amended complaint. Similar purported
class actions were also filed on September 18 and 20, 1996 in the
Supreme Court of the State of New York, New York County, and on
November 14, 1996 in the Superior Court of the State of Delaware,
New Castle County, against the Dean Witter Parties and certain
trading advisors (including JWH) on behalf of all purchasers of
interests in various limited partnership commodity pools sold by
DWR. Generally, these complaints allege, among other things,
that the defendants committed fraud, deceit, misrepresentation,
breach of fiduciary duty, fraudulent and unfair business
practices, unjust enrichment, and conversion in connection with
the sale and operation of the various limited partnership
commodity pools. The complaints seek unspecified amounts of
compensatory and punitive damages and other relief. It is
possible that additional similar
<PAGE>
actions may be filed and that, in the course of these actions,
other parties could be added as defendants. The Dean Witter
Parties believe that they have strong defenses to, and they will
vigorously contest, the actions. Although the ultimate outcome
of legal proceedings cannot be predicted with certainty, it is
the opinion of management of the Dean Witter Parties that the
resolution of the actions will not have a material adverse effect
on the financial condition or the results of operations of any of
the Dean Witter Parties.
Item 5. OTHER INFORMATION
On July 21, 1997, MSDWD, the sole shareholder of Demeter,
appointed a new Board of Directors consisting of Richard M.
DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph G. Siniscalchi,
Edward C. Oelsner III, and Robert E. Murray.
<PAGE>
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K - None.
<PAGE>
SIGNATURE
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.
Columbia Futures Fund L.P.
(Registrant)
By: Demeter Management Corporation
(General Partner)
August 7, 1997 By:/s/ Patti L. Behnke
Patti L. Behnke
Chief Financial Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Cornerstone Fund IV and is qualified in its entirety by reference
to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 99,691,162
<SECURITIES> 0
<RECEIVABLES> 327,560
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 99,747,507<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 99,747,507<F2>
<SALES> 0
<TOTAL-REVENUES> 13,651,145<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,692,850
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,958,295
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,958,295
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,958,295
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
loss on open contracts of $(271,215).
<F2>Liabilities include redemptions payable of $681,159, accrued management
fees of $330,698, common administrative expenses payable of $125,134,
accrued brokerage commissions of $77,616 and accrued transaction fees
and costs of $4,567.
<F3>Total revenue includes realized trading revenue of $17,204,603, net
change in unrealized of $(5,601,735) and interest income of $2,048,277.
</FN>
</TABLE>
