<PAGE>
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 March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 814-48
TECHNOLOGY FUNDING PARTNERS III, L.P.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3033783
- ------------------------------ ---------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
- --------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(650) 345-2200
--------------------------------------------------
(Registrant's telephone number, including area code)
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
--- ---
No active market for the units of limited partnership interest ("Units")
exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
- --------------
<TABLE>
<CAPTION>
(unaudited)
March 31, December 31,
2000 1999
------------ -----------
<S> <C> <C>
ASSETS
Equity investments (cost basis
of $16,836,944 and $20,194,582 for
2000 and 1999, respectively) $38,244,587 36,642,407
Notes receivable (cost basis of
$2,059,575 and $20,824 for 2000
and 1999, respectively) 2,059,575 20,824
---------- ----------
Total investments 40,304,162 36,663,231
Cash and cash equivalents 13,044,644 1,560,773
Due from related parties -- 66,844
Other assets 6,744 2,343
---------- ----------
Total $53,355,550 38,293,191
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 83,694 73,159
Due to related parties 55,350 --
Other liabilities -- 3,836
---------- ----------
Total liabilities 139,044 76,995
Commitments, contingencies and
subsequent event (Notes 2, 3, 6 and 7)
Partners' capital:
Limited Partners
(160,000 Units outstanding) 48,827,951 35,782,284
General Partners 4,388,555 2,433,912
---------- ----------
Total partners' capital 53,216,506 38,216,196
---------- ----------
Total liabilities
and partners' capital $53,355,550 38,293,191
========== ==========
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
2000 1999
--------- ---------
<S> <C> <C>
Income:
Notes receivable interest $ 46,777 7,292
Short-term investment interest 23,325 35,567
Other income -- 123
---------- ---------
Total income 70,102 42,982
Costs and expenses:
Management fees 95,733 61,050
Individual General Partners'
compensation 5,160 11,414
Operating expenses:
Administrative and investor services 112,151 128,849
Investment operations 64,880 79,820
Professional fees 18,111 10,413
Computer services 32,868 28,734
---------- ---------
Total operating expenses 228,010 247,816
---------- ---------
Total costs and expenses 328,903 320,280
---------- ---------
Net operating loss (258,801) (277,298)
Net realized gain from sales
of equity investments 11,224,592 199,951
Realized gains from venture capital
limited partnership investments 288,029 93,583
---------- ---------
Net realized income 11,253,820 16,236
Change in net unrealized
fair value of equity
investments 4,959,818 1,258,829
Net unrealized gain on foreign
currency transaction 25,038 --
---------- ---------
Net income $16,238,676 1,275,065
========== =========
Net income per Unit $ 81.54 3.98
========== =========
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Interest and other income received $ 24,204 44,320
Cash paid to vendors (82,737) (106,364)
Cash paid to related parties (121,674) (191,166)
---------- ---------
Net cash used by operating
activities (180,207) (253,210)
---------- ---------
Cash flows from investing activities:
Proceeds from sales of
equity investments 15,692,142 873,237
Purchase of equity investments (818,933) (817,846)
Notes receivable issued (2,000,000) --
Repayment of notes receivable 4,197 198,844
Distributions from venture capital
limited partnerships -- 93,338
---------- ---------
Net cash provided by
investing activities 12,877,406 347,573
---------- ---------
Cash flows from financing activities:
Tax distributions to General
Partners (1,238,366) --
---------- ---------
Net cash used by financing activities (1,238,366) --
---------- ---------
Effect of exchange rate changes on
cash and cash equivalents 25,038 --
---------- ---------
Net increase in cash
and cash equivalents 11,483,871 94,363
Cash and cash equivalents at beginning
of year 1,560,773 3,160,675
---------- ---------
Cash and cash equivalents
at March 31 $13,044,644 3,255,038
========== =========
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
2000 1999
---------- ----------
<S> <C> <C>
Reconciliation of net income to net
cash used by operating activities:
Net income $16,238,676 1,275,065
Adjustments to reconcile net income
to net cash used by operating activities:
Net realized gain from sales of
equity investments (11,224,592) (199,951)
Realized gains from venture capital
limited partnership investments (288,029) (93,583)
Change in net unrealized fair value of
equity investments (4,959,818) (1,258,829)
Net unrealized gain on foreign currency
transaction (25,038) --
Changes in:
Accrued interest on notes receivable (45,898) 1,338
Accounts payable and accrued expenses 10,535 (9,856)
Due to/from related parties 122,194 40,738
Other changes, net (8,237) (8,132)
---------- ---------
Net cash used by operating activities $ (180,207) (253,210)
========== =========
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, the Balance Sheets as of
March 31, 2000, and December 31, 1999, and the related Statements of
Operations and Statements of Cash Flows for the three months ended March
31, 2000 and 1999, reflect all adjustments which are necessary for a fair
presentation of the financial position, results of operations and cash
flows for such periods. These statements should be read in conjunction
with the Annual Report on Form 10-K for the year ended December 31, 1999.
The following notes to financial statements for activity through March 31,
2000, supplement those included in the Annual Report on Form 10-K.
Allocation of income and loss to Limited and General Partners is based on
cumulative income and loss. Adjustments, if any, are reflected in the
current quarter balances.
Partners' Capital Reclassification
- ----------------------------------
Commencing in the fourth quarter of 1999, the Partnership is including the
change in net unrealized fair value of investments in the profits and
losses allocated to partners' capital accounts based on a reevaluation of
the Partnership Agreement. The allocations of the net unrealized fair
value increase (decrease) from cost of investments, and resulting
reclassifications, were determined by applying the provisions of the
Partnership Agreement from the inception of the Partnership. The
reclassification has no effect on total partners' capital or the
Partnership's net income or loss for any period. The reclassifications
resulting from the reevaluation of the Partnership Agreement have the
effect of accelerating the allocation of profits or losses to partners'
capital accounts and, as a result, may permit the acceleration of
distributions to Partners to the extent allowable under the Partnership
Agreement.
The allocation of the net unrealized fair value increase reclassified as of
March 31, 1999 follows:
Net Unrealized
Fair Value
Increase
Limited General From Cost of
Partners Partners Investments Total
-------- -------- -------------- ---------
Partners' capital,
March 31, 1999,
before reclassification $24,344,543 (332,394) 1,601,446 25,613,595
Allocation of net
unrealized fair value
increase from cost 1,132,116 469,330 (1,601,446) --
---------- ------- ---------- ----------
Partners' capital,
March 31, 1999,
as reclassified $25,476,659 136,936 -- 25,613,595
========== ======= ========== ==========
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party expenses for the three months
ended March 31, 2000 and 1999, were as follows:
<TABLE>
<CAPTION>
2000 1999
--------- --------
<S> <C> <C>
Management fees $ 95,733 61,050
Individual General Partners'
compensation 5,160 11,414
Reimbursable operating expenses 142,975 159,440
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual costs periodically. There was $23,440 due to related parties for
such expenses at March 31, 2000 compared to $21,106 due from related
parties at December 31, 1999.
Amounts due to related parties for management fees were $31,910 and $26,758
at March 31, 2000, and December 31, 1999, respectively.
At December 31, 1999, the Partnership had a receivable of $72,496 for
investment sales proceeds due from an affiliated partnership. These monies
were received in the first quarter of 2000.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of portfolio
companies. It is the Managing General Partners' policy that all such
compensation be transferred to the investing partnerships. If the options
are non-transferable, they are not recorded as an asset of the Partnership.
Any profit from the exercise of such options will be transferred if and
when the options are exercised and the underlying stock is sold by the
officers. Any such profit is allocated amongst the Partnership and
affiliated Partnerships based upon their proportionate investments in the
portfolio company. At March 31, 2000, the Partnership had an indirect
interest in non-transferable Thermatrix Inc. options at an exercise price
higher than the current market value. At March 31, 2000, the Partnership
and affiliated Partnerships had an indirect interest in non-transferable
Endocare, Inc. and White Electronic Designs Corporation options with a fair
market value of $648,645.
3. Equity Investments
------------------
<TABLE>
A complete listing of the Partnerships equity investments at December 31, 1999, is in the 1999
Annual Report on Form 10-K. Activity from January 1 through March 31, 2000, consisted of:
<CAPTION>
January 1 through March 31, 2000
Principal --------------------------------
Amount or
Investment Shares as of Cost Fair
Industry/Company Position Date March 31, 2000 Basis Value
- ---------------- -------- ---------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 2000 $20,194,582 36,642,407
---------- ----------
Significant changes:
Communications
- --------------
Illinois Superconductor Common
Corporation shares 1999 0 (87,847) (4,754)
Women.com Networks, Common
Inc. (a) shares 1996-1999 580,956 0 (1,439,784)
Computers and Computer Equipment
- --------------------------------
White Electronic Common
Designs Corporation shares various 0 (2,958,084) (4,073,766)
Computer Systems and Software
- -----------------------------
Photon Dynamics, Common
Inc. shares 1996 37,500 0 1,478,438
Electronic Design Automation
- ----------------------------
Cadence Design Common
Systems, Inc. shares 1996 24,000 0 (51,000)
Industrial/Business Automation
- ------------------------------
Nanophase Technologies Common
Corporation shares 2000 14,557 251,108 233,465
Medical/Biotechnology
- ---------------------
Acusphere, Convertible
Inc. (a) note 2000 $299,137 302,087 302,087
ADESSO Specialty
Services Organization Preferred
Inc. (a) (b) shares 1997-2000 204,670 129,797 1,784,126
CV Therapeutics, Common
Inc. shares 1996 0 (79,987) (199,568)
Endocare, Inc. (b) Common
shares 1996-1999 492,929 0 5,323,634
Epoch Common
Pharmaceuticals Inc. shares 2000 5,264 105,280 73,106
Inhale Therapeutic Common
Systems, Inc. shares 1999 0 (69,889) (78,671)
LifeCell Common
Corporation shares 1992-1997 351,060 0 719,674
Matrix Common
Pharmaceutical, Inc. shares 1992-1995 31,633 (725,618) (1,121,927)
Oxford GlycoSciences Common
Plc shares 1993 50 (499,724) (884,624)
Pharmadigm, Common
Inc. (a) shares 1993-1998 546,143 0 (775,523)
Pharmos Common
Corporation shares 1995 0 (45,248) (122,170)
Sanarus Medical, Preferred
Inc. (a) (b) shares 2000 260,000 390,000 390,000
Simione Central Common
Holdings, Inc. (a) shares 1999 25,511 0 (64,843)
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited
Partnership
interests various $3,875,208 (68,359) 147,514
---------- ----------
Total significant changes during the three months
ended March 31, 2000 (3,356,484) 1,635,414
Other changes, net (1,154) (33,234)
---------- ----------
Total equity investments at March 31, 2000 $16,836,944 38,244,587
========== ==========
Legend and footnotes:
(a) Equity securities acquired in a private placement transaction;
resale may be subject to certain selling restrictions.
(b) Portfolio company is an affiliate of the Partnership;
resale may be subject to certain selling restrictions.
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 2000, and December 31, 1999, marketable equity securities had
aggregate costs of $3,853,002 and $8,032,948, respectively, and aggregate
fair values of $16,049,734 and $14,819,273, respectively. The net
unrealized gains at March 31, 2000, and December 31, 1999, included gross
gains of $12,360,344 and $7,005,352, respectively.
Acusphere, Inc.
- ---------------
In February 2000, the Partnership funded a convertible note to the company
in the amount of $299,137, with an interest rate of 8% and a maturity date
of December 31, 2000. The note is convertible into 90,648 Series E
Preferred shares.
ADESSO Specialty Services Organization, Inc.
- --------------------------------------------
In March 2000, the Partnership purchased 7,726 Series E Preferred shares
for $129,797. The pricing of this round, in which third parties
participated, indicated a $1,654,329 increase in the fair value of the
Partnership's investment in the company's preferred shares.
CV Therapeutics, Inc.
- ---------------------
In January 2000, the Partnership sold its entire investment in the company
for proceeds of $214,137 and realized a gain of $134,150.
Illinois Superconductor Corporation
- -----------------------------------
In January 2000, the Partnership sold 5,810 common shares in the company
for proceeds of $7,815 and realized a loss of $80,032.
Inhale Therapeutic Systems, Inc.
- --------------------------------
In March 2000, the Partnership sold its entire investment in the company
for proceeds of $203,348 and realized a gain of $133,459.
Matrix Pharmaceuticals, Inc.
- ----------------------------
During the first quarter of 2000, the Partnership sold 290,000 common
shares in the company for proceeds of $4,530,536 and realized a gain of
$3,804,918.
Oxford GlycoSciences Plc
- ------------------------
During the first quarter of 2000, the Partnership sold 106,722 common
shares in the company for proceeds of $4,052,250 and realized a gain of
$3,552,526.
Pharmadigm, Inc.
- ----------------
In March 2000, the company completed a new round of financing in which the
Partnership did not participate. The pricing of this round, in which
third parties participated, indicated a $779,738 decrease in the fair
value of the Partnership's investment.
Pharmos Corporation
- -------------------
In January 2000, the Partnership sold its entire investment in the company
for proceeds of $187,762 and realized a gain of $142,514.
Sanarus Medical, Inc.
- ---------------------
In February 2000, the Partnership purchased 260,000 Series A Preferred
shares in the company for $390,000.
Simione Central Holdings, Inc.
- ------------------------------
In March 2000, the company's shareholders approved a one-for-five reverse
stock split in order to meet requirements to maintain the company's
listing on the Nasdaq National Market.
White Electronic Designs Corporation
- ------------------------------------
During the first quarter of 2000, the Partnership sold its entire
investment in the company for proceeds of $6,496,284 and realized a gain
of $3,538,200.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership received stock distributions of Epoch Pharmaceuticals Inc.
and Nanophase Technologies Corporation with fair values totaling $356,388.
Distributions totaling $288,029 were recorded as realized gains and
distributions totaling $68,359 were recorded as returns of capital.
The Partnership recorded a $215,873 increase in fair value as a result of
a net increase in the fair value of the underlying investments of the
partnerships.
Other Equity Investments
- ------------------------
Other significant changes reflected above relate to market value
fluctuations or the elimination of a discount relating to selling
restrictions for publicly-traded portfolio companies. Portions of the
Partnership's Simione Central Holdings, Inc., Thermatrix Inc. and
Women.com Networks, Inc. investments are restricted.
Subsequent to March 31, 2000, the fair value of the Partnership's
investments in Endocare, Inc., LifeCell Corporation and Women.com
Networks, Inc. decreased by $1,417,171, $658,237 and $2,176,667,
respectively, as a result of a decrease in the publicly traded market
price on May 8, 2000.
4. Notes Receivable
----------------
Activity from January 1 through March 31 consisted of:
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
Balance at January 1 $ 20,824 202,777
Notes receivable issued 2,000,000 --
Repayments of notes receivable (4,197) (198,844)
Change in interest receivable 42,948 (3,933)
--------- -------
Balance at March 31 $2,059,575 --
========= =======
</TABLE>
The interest rate on notes receivable at March 31, 2000 ranged from 16% to
50%. All notes are due on demand.
5. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at March 31, 2000, and December 31, 1999,
consisted of:
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
Demand accounts $ 36,805 161,015
Money-market accounts 13,007,839 1,399,758
---------- ---------
$ $13,044,644 1,560,773
========== =========
</TABLE>
6. Distributions
-------------
In the first quarter of 2000, a tax distribution totaling $1,238,366 was
declared and paid to the General Partners. Subsequent to March 31, 2000,
a quarterly tax distribution was declared and paid to General Partners
totaling $1,654,540.
7. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-sheet
risk in the normal course of its business. Generally, these instruments
are commitments for future equity investment fundings, venture capital
limited partnership investments, equipment financing commitments, or
accounts receivable lines of credit that are outstanding but not currently
fully utilized by a borrowing company. As they do not represent current
outstanding balances, these unfunded commitments are properly not
recognized in the financial statements. At March 31, 2000, there were no
unfunded commitments to portfolio companies and venture capital limited
partnerships.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the three months ended March 31, 2000, net cash used by operating
activities totaled $180,207. The Partnership paid management fees of
$90,581 to the Managing General Partners and reimbursed related parties
for operating expenses of $98,429. The Partnership also received
investment sales proceeds of $72,496 from an affiliated partnership. In
addition, $5,160 was paid to the Individual General Partners as
compensation for their services. Other operating expenses of $82,737 were
paid and $24,204 in interest income was received.
During the three months ended March 31, 2000, the Partnership funded
equity investments of $818,933 to portfolio companies in the
medical/biotechnology industry and issued $2,000,000 in notes receivable
to a portfolio company in the computer systems and software industry.
Proceeds from equity investment sales were $15,692,142 and repayments of
notes receivable were $4,197. Tax distributions totaling $1,238,366 were
paid to the General Partners.
Cash and cash equivalents at March 31, 2000, were $13,044,644. Cash
reserves, interest income on short-term investments, and future proceeds
from equity investment sales are expected to be adequate to fund
Partnership operations and future investments through the next twelve
months. Subsequent to March 31, 2000, a quarterly tax distribution
totaling $1,654,540 was declared and paid to the General Partners.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net income was $16,238,676 and $1,275,065 for the three months ended March
31, 2000 and 1999, respectively. The change was primarily due to an
$11,024,641 increase in net realized gains from equity investment sales,
an increase of $3,700,989 in the change in net unrealized fair value of
equity investments and a $194,446 increase in net realized gain from
venture capital limited partnerships.
Net realized gain from sales of equity investments was $11,224,592 for the
quarter ended March 31, 2000, as compared to a net realized gain of
$199,951 for the quarter ended March 31, 1999. The gain in 2000 primarily
resulted from the sales of Matrix Pharmaceuticals, Inc., Oxford
GlycoSciences Plc and White Electronic Designs Corporation. (See Note 3.)
The Partnership recorded an increase in fair value of equity investments
of $4,959,818 during the quarter ended March 31, 2000 primarily due to
increases in portfolio companies in the medical/biotechnology and computer
systems and software industries, partially offset by decreases in the
communications and computer and computer equipment industries. During the
same period in 1999, the increase in fair value of equity investments of
$1,258,829 was substantially attributable to increases in the information
technology and medical/biotechnology industries, partially offset by
decreases in the computer and computer equipment and electronic design
automation industries.
During the quarter ended March 31, 2000 the Partnership recorded net
realized gains from venture capital limited partnership investments of
$288,029. During the same period in 1999, there were gains of $93,583.
The gains represented distributions from profits of venture capital
limited partnerships.
Operating expenses were $228,010 for the quarter ended March 31, 2000,
compared to $247,816 for the same period in 1999. The decrease is
attributable to decreased investment monitoring activity.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended March 31, 2000.
(b) Financial Data Schedule for the three months ended and as of March
31, 2000 (Exhibit 27).
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) 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.
TECHNOLOGY FUNDING PARTNERS III, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: May 12, 2000 By: /s/Michael R. Brenner
------------------------------------
Michael R. Brenner
Vice President
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<PERIOD-TYPE> 3-MOS
<INVESTMENTS-AT-COST> 18,896,519
<INVESTMENTS-AT-VALUE> 40,304,162
<RECEIVABLES> 0
<ASSETS-OTHER> 6,744
<OTHER-ITEMS-ASSETS> 13,044,644
<TOTAL-ASSETS> 53,355,550
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 139,044
<TOTAL-LIABILITIES> 139,044
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,808,863
<SHARES-COMMON-STOCK> 160,000
<SHARES-COMMON-PRIOR> 160,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 21,407,643
<NET-ASSETS> 53,216,506
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 70,102
<OTHER-INCOME> 0
<EXPENSES-NET> 328,903
<NET-INVESTMENT-INCOME> (258,801)
<REALIZED-GAINS-CURRENT> 11,512,621
<APPREC-INCREASE-CURRENT> 4,984,856
<NET-CHANGE-FROM-OPS> 16,238,676
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,238,366
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 15,000,310
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 95,733
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 332,153
<AVERAGE-NET-ASSETS> 45,716,351
<PER-SHARE-NAV-BEGIN> 223.64
<PER-SHARE-NII> 81.54
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 305.18
<EXPENSE-RATIO> 0.7
</TABLE>
