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 quarterly period ended September 30, 1998 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)
Delaware 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
September 30, 1998
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition September 30, 1998
(Unaudited) and December 31,
1997........................2
Statements of Operations for the Quarters Ended
September 30, 1998 and 1997 (Unaudited)..................3
Statements of Operations for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited)..................4
Statements of Changes in Partners' Capital for
the Nine Months Ended September 30, 1998 and 1997
(Unaudited)..............................................5
Statements of Cash Flows for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited)..................6
Notes to Financial Statements (Unaudited).............7-12
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations........................................13-22
PART II. OTHER INFORMATION
Item 1. Legal Proceedings....................................23
Item 6. Exhibits and Reports on Form 8-K.....................23
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
COLUMBIA FUTURES FUND
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30, December 31,
1998 1997
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in commodity futures trading accounts:
Cash 9,376,307 9,092,300
Net unrealized gain on open contracts 713,081 611,751
Total Trading Equity 10,089,388 9,704,051
Interest receivable (DWR) 31,689 33,770
Total Assets 10,121,077 9,737,821
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accrued administrative expenses 85,883 56,762
Redemptions payable 30,954 14,155
Accrued management fees 33,222 32,163
Incentive fee payable - 173,722
Total Liabilities 150,059 276,802
Partners' Capital
Limited Partners (3,121.196 and
3,242.046 Units, respectively) 9,661,474 9,177,928
General Partner (100 Units) 309,544 283,091
Total Partners' Capital 9,971,018 9,461,019
Total Liabilities and Partners' Capital 10,121,077
9,737,821
NET ASSET VALUE PER UNIT 3,095.44 2,830.91
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 143,426 597,244
Net change in unrealized (125,696) 96,132
Total Trading Results 17,730 693,376
Interest Income (DWR) 102,819 87,640
Total Revenues 120,549 781,016
EXPENSES
Management fees 101,499 84,390
Brokerage commissions (DWR) 75,580 95,299
Administrative expenses 14,000 17,000
Transaction fees and costs 5,755 8,690
Total Expenses 196,834 205,379
NET INCOME (LOSS) (76,285) 575,637
NET INCOME (LOSS) ALLOCATION
Limited Partners (73,894) 558,961
General Partner (2,391) 16,676
NET INCOME (LOSS) PER UNIT
Limited Partners (23.91) 166.76
General Partner (23.91) 166.76
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1998 1997
$ $
REVENUES
<S> <C> <C>
Trading profit:
Realized 1,192,374 888,100
Net change in unrealized 101,330 63,429
Total Trading Results 1,293,704 951,529
Interest Income (DWR) 292,350 263,643
Total Revenues 1,586,054 1,215,172
EXPENSES
Management fees 287,278 253,574
Brokerage commissions (DWR) 239,853 271,090
Incentive fees 133,846 76,969
Administrative expenses 46,000 49,000
Transaction fees and costs 17,010 24,188
Total Expenses 723,987 674,821
NET INCOME 862,067 540,351
NET INCOME ALLOCATION
Limited Partners 835,614 525,147
General Partner 26,453
15,204
NET INCOME PER UNIT
Limited Partners 264.53 152.04
General Partner 264.53 152.04
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Nine Months Ended September 30, 1998 and 1997
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
Partner's Capital
December 31, 1996 3,612.282 $8,110,079 $230,906 $8,340,985
Net Income - 525,147 15,204 540,351
Redemptions (239.770) (581,231) - (58
1,231)
Partners' Capital
September 30, 1997 3,372.512 $8,053,995 $246,110 $8,300,
105
Partner's Capital
December 31, 1997 3,342.046 $9,177,928 $283,091$9,461,019
Net Income - 835,614 26,453 862,067
Redemptions (120.850) (352,068) - (3
52,068)
Partners' Capital
September 30, 1998 3,221.196 $9,661,474 $309,544 $9,971,01
8
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
COLUMBIA FUTURES FUND
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended September 30,
1998 1997
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income 862,067 540,351
Noncash item included in net income:
Net change in unrealized (101,330) (63,429)
(Increase) decrease in operating assets:
Interest receivable (DWR) 2,081 279
Due from DWR - (6,819)
Increase (decrease) in operating liabilities:
Accrued administrative expenses 29,121 5,104
Accrued management fees 1,059 (484)
Incentive fee payable (173,722) (150,103)
Accrued brokerage commissions (DWR)- (1,034)
Accrued transaction fees and costs -
(85)
Net cash provided by operating activities 619,276 323,780
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in redemptions payable 16,799 45,820
Redemptions of units (352,068) (581,231)
Net cash used for financing activities (335,269)(535,411)
Net increase (decrease) in cash 284,007 (211,631)
Balance at beginning of period 9,092,300 8,233,513
Balance at end of period 9,376,307 8,021,882
<FN>
The accompanying notes 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 of Columbia Futures Fund
(the "Partnership"). The financial statements and condensed
notes herein should be read in conjunction with the
Partnership's December 31, 1997 Annual Report on Form 10-K.
1. Organization
Columbia Futures Fund 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 is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker is
Dean Witter Reynolds Inc. ("DWR"), an affiliate of Demeter. The
clearing commodity broker is Carr Futures Inc. ("Carr"),
providing clearing and execution services. Both Demeter and DWR
are wholly-owned subsidiaries of Morgan Stanley Dean Witter &
Co. ("MSDW"). The trading manager who makes all trading
decisions for the Partnership is John W. Henry & Company, Inc.
("JWH" or "Trading Manager").
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in
futures
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
interest 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.
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities and currencies. 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 September 30, 1998 and December
31, 1997, open contracts were:
Contract or Notional Amount
September 30, 1998 December 31, 1997
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 9,146,000 8,412,000
Commitments to Sell - 3,094,000
Commodity Futures:
Commitments to Purchase 1,280,000 1,948,000
Commitments to Sell 2,403,000 3,352,000
Foreign Futures:
Commitments to Purchase 15,295,000 3,862,000
Commitments to Sell 1,482,000 4,056,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 30,241,000 6,966,000
Commitments to Sell 13,446,000 20,155,000
<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 $713,081 and
$611,751 at September 30, 1998 and December 31, 1997,
respectively.
Of the $713,081 net unrealized gain on open contracts at
September 30, 1998, $618,669 related to exchange-traded futures
contracts and $94,412 related to off-exchange-traded forward
currency contracts.
Of the $611,751 net unrealized gain on open contracts at
December 31, 1997, $424,057 related to exchange-traded futures
contracts and $187,694 related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at
September 30, 1998 and December 31, 1997 mature through
September
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1999 and December 1998, respectively. Off-exchange-traded
forward currency contracts held by the Partnership at September
30, 1998 and December 31, 1997 mature through December 1998 and
March 1998, respectively.
The contract amounts in the above table represent the
Partnership's extent of involvement in a particular class of
financial instrument, but not the credit risk associated with
counterparty non-performance. 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 and Carr act as
the futures commission merchants or the counterparties, 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. Each of DWR and
Carr, as a futures commission merchant for the Partnership's
exchange-traded futures contracts, is required, pursuant to
regulations of the Commodity Futures Trading Commission
("CFTC"), to segregate from their own assets, and for the sole
benefit of their commodity customers, all funds held by them
with respect to exchange-traded futures contracts, including an
amount equal to
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the net unrealized gain on all open futures contracts, which
funds, in the aggregate, totaled $9,994,976 and $9,516,357 at
September 30, 1998 and December 31, 1997, 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, the Partnership is at risk to the ability of Carr,
the sole counterparty on all such contracts, to perform. Carr's
parent, Credit Agricole Indosuez, has guaranteed to the
Partnership payment of the net liquidating value of the
transactions in the Partnership's account with Carr (including
foreign currency contracts).
For the nine months ended September 30, 1998 and the year ended
December 31, 1997, the average fair value of financial
instruments held for trading purposes was as follows:
September 30, 1998
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 6,201,000 2,488,000
Commodity Futures 1,029,000 3,319,000
Foreign Futures 7,636,000 3,093,000
Off-Exchange-Traded Forward
Currency Contracts 23,697,000 32,477,000
<PAGE>
COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
December 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 7,750,000 6,950,000
Commodity Futures 4,075,000 3,836,000
Foreign Futures 5,415,000 2,274,000
Off-Exchange-Traded Forward
Currency Contracts 14,901,000 19,757,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - Assets of the Partnership are deposited with DWR as
non-clearing broker and Carr as clearing broker in separate
futures interest trading accounts established for the Trading
Manager and are used by the Partnership as margin to engage in
futures interest trading. Such assets are held in either non-
interest bearing bank accounts or in securities approved by the
CFTC for investment of customer funds. The Partnership's assets
held by DWR and Carr 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 investment 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 for a
particular futures interest has increased or decreased by an
amount equal to the daily limit, positions in such futures
interests can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit. Futures
interests prices have occasionally moved the daily limit for
several consecutive days with little or
<PAGE>
no trading. Such market conditions could prevent the
Partnership from promptly liquidating its futures interests and
result in restrictions on redemptions.
There is no limitation on daily price moves in trading 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. Future redemptions and
exchanges of Units of Limited Partnership Interest will affect
the amount of funds available for investment in futures
interests in subsequent periods. Since they are at the
discretion of the Limited Partners, it is not possible to
estimate the amount and therefore, the impact of future
redemptions and exchanges of Units.
Results of Operations
For the Quarter and Nine Months Ended September 30, 1998
For the quarter ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
<PAGE>
$120,549 and after expenses posted a decrease in Net Asset Value
per Unit. The most significant losses were recorded in the
currency markets from transactions involving the British pound
and Australian dollar as the value of these currencies failed to
move with consistent direction relative to the U.S. dollar
throughout a majority of the quarter. Smaller currency losses
were recorded during September from short Japanese yen positions
as the value of the yen strengthened versus the U.S. dollar as a
Japanese official hinted that Japan may intervene to support the
yen. As a result of this strengthening in the yen, new long
positions were established during mid-September, only to result
in additional losses as the value of the yen decreased due to
the failure of the Japanese government to present any new
initiatives toward economic recovery in that country. In other
markets, choppy price movement in coffee prices throughout the
quarter resulted in losses being recorded in soft commodities.
Smaller losses were recorded in metals from long silver futures
positions during July, as silver prices moved lower, and from
short silver futures positions during September as precious
metals prices were boosted higher by the weakness in the U.S.
dollar. A majority of these losses were offset by gains
recorded in the financial futures markets during August and
September from long positions in German, U.S. and Japanese bond
futures as the volatility in global stock markets and worldwide
economic uncertainty drove investors to these "safe havens",
thus pushing prices higher.
<PAGE>
Smaller profits were recorded in the agricultural markets during
July and August from short corn futures positions as grain
prices decreased on reports of abundant supplies. Total
expenses for the three months ended September 30, 1998 were
$196,834, resulting in a net loss of $76,285. The value of an
individual Unit in the Partnership decreased from $3,119.35 at
June 30, 1998 to $3,095.44 at September 30, 1998.
For the nine months ended September 30, 1998, the Partnership
recorded total trading revenues including interest income of
$1,586,054 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in the financial
futures markets during August and September from long positions
in German, U.S. and Japanese bond futures as prices moved
sharply higher due to a "flight-to-quality" by investors seeking
refuge from the worldwide economic uncertainty and subsequent
volatility. Additional profits were recorded in the currency
markets from short South African rand positions as its value
moved significantly lower during May and June despite an effort
by the South African government to prevent its currency from
declining further. In energies, gains were recorded from short
crude oil futures positions as oil prices moved lower throughout
a majority of the first quarter despite the threat of a conflict
in the Persian Gulf. Short positions in crude oil futures
continued to profit during the second quarter and early part of
the third quarter as oil prices moved lower following a spike
<PAGE>
higher in late March. Smaller gains were recorded in the
agricultural markets during July and August as short corn
futures positions profited from a decline in grain prices.
These gains were partially offset by losses incurred in the
metals markets during July from long silver futures positions,
as prices moved lower, and during September from short silver
futures positions, as precious metals prices were pushed higher
by the weakness in the U.S. dollar. Additional losses were
recorded in metals from trading gold futures as gold prices
moved without consistent direction during the first quarter. In
soft commodities, smaller loses were recorded from trading
cotton futures throughout a majority of the first nine months of
the year. Total expenses for the nine months ended September
30, 1998 were $723,987, resulting in net income of $862,067.
The value of an individual Unit in the Partnership increased
from $2,830.91 at December 31, 1997 to $3,095.44 at September
30, 1998.
For the Quarter and Nine Months Ended September 30, 1997
For the quarter ended September 30, 1997, the Partnership
recorded total trading revenues including interest income of
$781,016 and posted an increase in Net Asset Value per Unit.
Gains were recorded in the currency and financial futures
markets throughout the quarter. In currencies gains were
recorded as the value of the U.S. dollar strengthened relative
to most currencies. As a result, profits were recorded from
short positions in the Malaysian ringgit and Singapore dollar
during
<PAGE>
the quarter. Smaller gains were recorded from trading the New
Zealand dollar, German mark and French franc during the quarter.
In financial futures trading, gains were recorded from long
Japanese bond futures positions as prices in this market moved
higher during the quarter. Smaller gains were recorded from
long European bond futures positions as prices in these markets
also moved higher. Additional gains were recorded from short
Nikkei index futures positions during August. A portion of
these gains was offset by losses recorded from trading crude oil
as oil prices moved without consistent direction during August
and September. In other markets, losses were recorded from
trendless price movement in coffee futures during September and
corn futures during July and September. Total expenses for the
three months ended September 30, 1997 were $205,379, resulting
in net income of $575,637. The value of an individual Unit in
the Partnership increased from $2,294.34 at June 30, 1997 to
$2,461.10 at September 30, 1997.
For the nine months ended September 30, 1997, the Partnership
recorded total trading revenues including interest income of
$1,215,172 and posted an increase in Net Asset Value per Unit.
The most significant gains were recorded in the currency markets
as the value of the U.S. dollar increased relative to most world
currencies during the first and third quarters of the year.
Additional gains were recorded in the financial futures markets
from long Japanese bond futures positions during the third
<PAGE>
quarter and from long positions in Australian bond futures
during May, June, July and September. In global stock index
futures, gains were recorded from short Nikkei index futures
positions during August. In metals, gains were recorded from
short gold futures positions, as gold prices declined during
January and June. These gains were partially offset by losses
recorded in the energy markets from trading crude oil futures as
oil prices moved in a choppy pattern throughout most of the
year. Smaller losses were recorded in the soft commodities and
agricultural markets as profits during the first half of the
year from trading coffee and corn futures were offset by losses
in these same markets due to trendless price movement during the
third quarter. Total expenses for the nine months ended
September 30, 1997 were $674,821, resulting in net income of
$540,351. The value of an individual Unit in the Partnership
increased from $2,309.06 at December 31, 1996 to $2,461.10 at
September 30, 1997.
Year 2000 Problem - Commodity pools, like financial and business
organizations and individuals around the world, depend on the
smooth functioning of computer systems. Many computer systems
in use today cannot recognize the computer code for the year
2000, but revert to 1900 or some other date. This is commonly
known as the "Year 2000 Problem." The Partnership could be
adversely affected if computer systems used by it or any third
party with whom it has a material relationship do not properly
<PAGE>
process and calculate date-related information and data
concerning dates on or after January 1, 2000. Such a failure
could have a negative impact on the handling or determination of
futures trades and prices and the services provided to the
Partnership.
MSDW began its planning in response to the Year 2000 Problem in
1995 and currently has several hundred employees working on such
response. It has developed its own Year 2000 compliance plan to
deal with the problem and had the plan approved by the company's
executive management, Board of Directors and Information
Technology Department. Demeter is coordinating with MSDW in
taking steps that both believe are reasonably designed to
address the Year 2000 Problem with respect to Demeter's computer
systems that relate to the Partnership. This includes hardware
and software upgrades, systems consulting and computer
maintenance.
Beyond the challenge facing internal computer systems, the
systems failure of any of the third parties with whom the
Partnership has a material relationship - the futures exchanges
and clearing organizations through which it trades, Carr, and
the Trading Manager - could result in a material financial risk
to the Partnership. Regarding the futures exchanges, all U.S.
futures exchanges will be subject to the monitoring of the CFTC
for their Year 2000 preparedness and the major foreign futures
<PAGE>
exchanges are also expected to be subject to market-wide testing
of their Year 2000 compliance during 1999. With respect to Carr
and the Trading Manager, Demeter intends to monitor their
progress throughout 1999 in their Year 2000 compliance and,
where applicable, to test its external interface with Carr and
the Trading Manager.
Finally, MSDW has begun developing various "contingency plans"
in the event that the systems of such third parties fail, and
Demeter intends to consult closely with MSDW in implementing
those plans. MSDW has also recently reported that its
development of such contingency plans is proceeding on schedule.
Despite the best efforts of both Demeter and MSDW, however,
there can be no assurance that the above steps will be
sufficient to avoid any adverse impact to the Partnership,
whether from failures in their own computer systems or those of
Carr, the Trading Manager or any other third party.
Risks Associated with the Euro - On January 1, 1999, eleven
countries in the European Union intend to establish fixed
conversion rates on their existing sovereign currencies and
convert to a common single currency (the "euro"). During a
three-year transition period, the existing sovereign currencies
will continue to exist but only as a fixed denomination of the
euro. Conversion to the euro will prevent the Trading Manager
from trading in certain currencies and thereby limit its ability
<PAGE>
to take advantage of potential market opportunities that might
otherwise have existed had separate currencies been available to
trade, and could result in losses with respect to those
positions.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Previously reported. See Form 10-Q for the quarter ended March
31, 1998.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
Reports on Form 8-K - No reports have been filed for the quarter
ended September 30, 1998.
<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
(Registrant)
By: Demeter Management Corporation
(General Partner)
November 16, 1998 By:/s/ Lewis A. Raibley, III
Lewis A. Raibley, III
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
Columbia Futures Fund and is qualified in its entirety to reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 9,376,307
<SECURITIES> 0
<RECEIVABLES> 31,689<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,121,077<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 10,121,077<F3>
<SALES> 0
<TOTAL-REVENUES> 1,586,054<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 723,987
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 862,067
<INCOME-TAX> 0
<INCOME-CONTINUING> 862,067
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 862,067
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable of $31,689.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $713,081.
<F3>Liabilities include redemptions payable of $30,954, accrued
management fees of $33,222 and accrued administrative expenses of
$85,883.
<F4>Total revenues include realized trading revenue of $1,192,374,
net change in unrealized of $101,330 and interest income of $292,350.
</FN>
</TABLE>