SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995 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 Number 0-16515
IDS MANAGED FUTURES, L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1189438
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification #)
233 South Wacker Dr., Suite 2300, Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 460-4000
Not Applicable
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
<TABLE>
Part I. Financial Information
Item 1. Financial Statements
Following are Financial Statements for the fiscal quarter ended September 30, 1995,
and the additional time frames as noted:
<CAPTION>
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 9/30/95 To 9/30/95 Ended 12/31/94 Ended 9/30/94 To 9/30/94
-------------- -------------- -------------- --------------------------
<S> <C> <C> <C> <C> <C>
Statement of
Financial Condition X X
Statement of
Operations X X X X
Statement of Changes
in Partners' Capital X
Statement of
Cash Flows X X
Notes to Financial
Statements X
</TABLE>
<TABLE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
<CAPTION>
Sep 30, 1995 Dec 31, 1994
--------------- -------------
<S> <C> <C>
ASSETS
Cash at Escrow Agent $0 $699,380
Equity in commodity futures
trading accounts:
Account balance 29,957,141 22,041,930
Unrealized gain on open
futures contracts 101,924 1,340,020
--------------- -------------
30,059,066 24,081,330
Interest receivable 119,052 103,566
Prepaid G.P. fee 81,734 0
--------------- -------------
Total assets $30,259,852 $24,184,896
=============== =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to IDS and CIS $53,872 $100,640
Accrued management fee 86,537 69,060
Accrued incentive fee 0 0
Accrued operating expenses 103,898 54,700
Redemptions payable 330,711 99,551
Selling and Offering Expenses Payable 126,791 83,746
--------------- -------------
Total liabilities 701,809 407,697
Partners' Capital:
Limited partners ( 113,936.32 units 29,064,661 23,356,449
outstanding at 9/30/95, 35,537.41
units outstanding at 12/31/94) (see Note 1)
General partners (1,934.10 units outstanding 493,382 420,750
9/30/95 and 640.18 at 12/31/94) (see Note 1)
--------------- -------------
Total partners' capital 29,558,043 23,777,199
--------------- -------------
Total liabilities and
partners' capital $30,259,852 $24,184,896
=============== =============
<FN>
In the opinion of management, these statements reflect all adjustments necessary
to fairly state the financial condition of IDS Managed Futures, L.P. (See Note 6)
</TABLE>
<TABLE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF OPERATIONS
UNAUDITED
<CAPTION>
Jul 1, 1995 Jan 1, 1995 Jul 1, 1994 Jan 1, 1994
through through through through
Sep 30, 1995 Sep 30, 1995 Sep 30, 1994 Sep 30, 1994
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
REVENUES
Gains on trading of commodity futures
and forwards contracts, physical
commodities and related options:
Realized gain (loss) on closed positions ($341,917) $6,080,881 $145,420 $819,093
Change in unrealized gain (loss)
on open positions 241,083 (1,238,095) (1,186,127) (434,639)
Interest income 343,083 1,022,769 223,987 488,352
Foreign currency transaction gain (loss) (12,366) 207,686 22,953 130,968
--------------- ------------- -------------- -------------
Total revenues 229,882 6,073,240 (793,766) 1,003,773
EXPENSES
Commissions paid to IDS and CIS 158,365 527,428 151,143 424,043
Exchange fees 3,388 13,277 2,917 9,762
Management fees 254,913 746,560 193,108 498,259
Incentive fees 0 416,712 0 186,976
General Partner fee to IDS and CIS 81,734 245,202 50,755 152,264
Operating expenses (1,724) 97,534 5,412 41,657
--------------- ------------- -------------- -------------
Total expenses 496,677 2,046,714 403,335 1,312,961
--------------- ------------- -------------- -------------
Net profit (loss) ($266,795) $4,026,526 ($1,197,101) ($309,187)
=============== ============= ============== =============
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST ($2.36) $36.02 ($13.13) ($4.54)
=============== ============= ============== =============
(see Note 1) (see Note 1) (see Note 1) (see Note 1)
<FN>
This Statement of Operations, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of IDS Managed Futures, L. P. (See Note 6)
</TABLE>
<TABLE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period January 1, 1995 through September 30, 1995
UNAUDITED
<CAPTION>
Limited General
Units* Partners Partners Total
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Partners' capital at January 1, 1995 35,537.41 $23,356,449 $420,750 $23,777,199
Net profit (loss) 3,956,774 69,752 4,026,526
Additional Units Sold or Created from 3-for-1 S 84,114.13 3,565,023 2,880 3,567,903
(see Note 1)
Less Selling and Organizational Costs (327,647) 0 (327,647)
Redemptions (see Note 1) (5,715.22) (1,485,937) (1,485,937)
--------------- ------------- -------------- -------------
Partners' capital at September 30, 1995 113,936.32 $29,064,661 $493,382 $29,558,043
=============== ============= ============== =============
Net asset value per unit
January 1, 1995 (see Note 1) 219.08 219.08
Net profit (loss) per unit (see Note 1) 36.02 36.02
------------- --------------
Net asset value per unit
September 30, 1995 $255.10 $255.10
* Units of Limited Partnership interest.
<FN>
This Statement of Changes in Partners' Capital, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of IDS Managed Futures, L. P. (See Note 6)
</TABLE>
<TABLE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CASH FLOWS
UNAUDITED
<CAPTION>
Jan 1, 1995 Jan 1, 1994
through through
Sep 30, 1995 Sep 30, 1994
--------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net profit (loss) $4,026,526 ($309,187)
Adjustments to reconcile net profit
(loss) to net cash provided by
(used in) operating activities:
Change in assets and liabilities:
Unrealized gain (loss) on open
futures contracts 1,238,095 434,639
Interest receivable (15,486) (47,183)
Prepaid general partner fee (81,734) (50,755)
Accrued liabilities 19,907 (5,443)
Redemptions payable 231,160 28,364
Selling and Offering Expenses Payable 43,045 (43,623)
--------------- -------------
Net cash provided by (used in)
operating activities 5,461,512 6,813
Cash flows from financing activities:
Additional Units Sold 3,567,903 9,914,474
Selling and Offering Expenses (327,647) (1,172,247)
Partner redemptions (1,485,937) (207,466)
--------------- -------------
Net cash provided by (used in)
financing activities 1,754,319 8,534,761
--------------- -------------
Net increase (decrease) in cash 7,215,831 8,541,574
Cash at beginning of period 22,741,310 14,453,526
--------------- -------------
Cash at end of period $29,957,141 $22,995,100
=============== =============
<FN>
This Statement of Cash Flows, in the opinion of management, reflects all adjustments
necessary to fairly state the financial condition of IDS Managed Futures, L. P. (See Note 6)
</TABLE>
IDS MANAGED FUTURES, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(1) GENERAL INFORMATION AND SUMMARY
IDS Managed Futures, L.P. (the "Partnership"), a limited
partnership organized on December 16, 1986 under the Delaware
Revised Uniform Limited Partnership Act, was formed to engage in
the speculative trading of commodity interests including futures
contracts, forward contracts, physical commodities and related
options thereon pursuant to the trading instructions of
independent trading advisors. The general partners are IDS
Futures Corporation and CIS Investments, Inc. The clearing
broker is Cargill Investor Services, Inc. (the "Clearing
Broker"), the parent company of CIS Investments, Inc. IDS
Futures Corporation is an affiliate of IDS Financial Services
Inc. which acts as the Partnership's introducing broker and
selling agent. Effective January 1, 1995, IDS Financial
Corporation, the parent company of IDS Financial Services Inc.,
changed its name to American Express Financial Corporation and
IDS Financial Services Inc. changed its name to American Express
Financial Advisors Inc. These were solely name changes; the
management and structure of each company did not change.
Units of limited partnership interest ("Units") were offered
initially by IDS Financial Services Inc. commencing March 27,
1987 and concluding June 16, 1987. Subsequent offerings
commenced March 29, 1993, January 31, 1994 and June 26, 1995.
The total amount of the initial offering was $7,500,000 and the
total amount of the combined reopenings was $80,000,000.
Investors affiliated with the Selling Agent of the Partnership
are not required to pay selling commissions, and the current
offering has varied selling commission rates depending on the
total dollar amount of the investment. Therefore, the total
number of Units authorized for the Partnership is not
determinable and therefore is not disclosed in the financial
statements.
At the end of the initial offering period, a total of 29,442
Units representing investments of $7,372,260 had been sold.
Selling commissions of $353,280 were paid to IDS Financial
Services Inc. Each of the General Partners purchased 213 Units.
The Partnership's initial offering period ended and the
Partnership began trading on June 16, 1987.
The Partnership was reopened to additional investment
pursuant to a new registration statement on Form S-1 that was
declared effective with the SEC on March 29, 1993. The maximum
sales allowed in this additional offering was $10,000,000.The
minimum subscription size for the reopening was $1,000 for
investors not affiliated with IDS. On January 31, 1994, a
registration statement on Form S-1 was declared effective with
the SEC for purposes of offering $20,000,000 of Units in the
Partnership in addition to the unsold portion of the $10,000,000
of Units offered pursuant to the Prospectus dated March 29, 1993.
By December 31, 1994, a total of 25,571.16 Units
representing a total investment of $20,033,657 of limited
partnership interest had been sold in these two combined
offerings. Selling commissions of $1,145,552 were paid to IDS by
the new limited partners. All new investors paid organization
and offering expenses totaling $1,202,003.During the period from
December 10, 1994 through December 31, 1994, subscriptions for
974.05 Units representing a total investment of $701,402 of
limited partnership interest were received from investors which
were accepted into the Partnership as of January 31, 1995. These
were the final subscriptions received from investors before the
close of that offering. Selling commissions of $38,670 were paid
to IDS by the new limited partners and all new investors paid
organization and offering expenses totaling $42,084.
On November 29, 1994, a registration statement on Form S-1
was filed with the SEC to register $50,000,000 of Units in
addition to the unsold portion of the $20,000,000 offered
pursuant to the Prospectus dated January 31, 1994. The new
registration statement was declared effective with the SEC on
June 26, 1995.
At the close of business on February 28, 1995 each Unit was
divided into three Units (the "3-for-1 split"), each of which has
a Net Asset Value per Unit equal to the previous Net Asset Value
per Unit divided by three. Accordingly, the total number of
Units outstanding tripled as of that date.
Commencing with the January 31, 1993 offering, the General
Partners modified the method in which they were reimbursed for
offering expenses that they advanced. All offering expenses
incurred in offering Units since March 29, 1993 were treated as a
single reimbursable amount. At the end of the offering (December
31, 1994), any excess of the aggregate Offering Expense charge
received by the General Partners over the actual offering
expenses advanced by them was rebated to those investors who
purchased Units during the entire offering since March 29, 1993.
Rebates were made pro rata based on the number of Units purchased
by each investor and were paid in cash. The payout to investors
equaled $671,399.88 and was paid to investors on approximately
April 1, 1995. Any rebate of less than $15 per investor,
however, was retained by the General Partners.
The Offering Expense charged pursuant to the registration
statement effective June 26, 1995 was reduced to 3% from the 6%
which had been charged in the previous two offerings. No rebate
similar to that described above will be made for this current
offering.
No redemptions are permitted by a subscriber during the
first six months after he or she has been admitted to the
Partnership. Thereafter, a Limited Partner may cause any or all
of his or her Units to be redeemed by the Partnership effective
as of the last trading day of any month of the Partnership based
on the Net Asset Value per Unit on ten days written notice to the
General Partners. There are no additional charges to the
investors at redemption. The General Partners may declare
additional redemption dates upon notice to the Limited Partners.
Payment will be made within ten business days of the effective
date of the redemption. The Partnership's Restated and Amended
Limited Partnership Agreement contains a full description of
redemption and distribution procedures.
The Partnership shall be terminated on Dec. 31, 2006 if none
of the following occur prior to that date: (1) investors holding
more than 50 percent of the outstanding Units notify the General
Partners to dissolve the Partnership as of a specific date;
(2) withdrawal, removal, insolvency, bankruptcy, legal disability
or dissolution of the General Partners of the Partnership; (3)
bankruptcy or insolvency of the Partnership; (4) decrease in the
net asset value to less than $500,000; (5) the Partnership is
declared unlawful; or (6) the net asset value per Unit declines
to less than $125 per Unit and the General Partners elect to
withdraw from the Partnership.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the Partnership
conform to generally accepted accounting principles and to
general practices within the commodities industry. The following
is a description of the more significant of those policies which
the Partnership follows in preparing its financial statements.
Financial Accounting Standards Board ("FASB") Interpretation
No. 39 Reporting
Reporting in accordance with FASB Interpretation No. 39
("FIN 39) is not applicable to the Partnership and the provisions
of FIN 39 do not have any effect on the Partnership's financial
statements.
Revenue Recognition
Commodity futures contracts, forward contracts, physical
commodities and related options are recorded on the trade date.
All such transactions are reported on an identified cost basis.
Realized gains and losses are determined by comparing the
purchase price to the sales price when the trades are offset.
Unrealized gains and losses reflected in the statements of
financial condition represent the difference between original
contract amount and market value (as determined by exchange
settlement prices for futures contracts and related options and
cash dealer prices at a predetermined time for forward contracts,
physical commodities and their related options) as of the last
business day of the quarter end.
The Partnership earns interest on 100 percent of the
Partnership's average monthly cash balance on deposit with the
Clearing Broker at a rate equal to 90 percent of the average
90-day Treasury bill rate for U.S. Treasury bills issued during
that month.
Commissions
Brokerage commissions, National Futures Association fees,
and clearing and exchange fees are accrued on a round-turn basis
on open commodity futures contracts. The Partnership pays
commissions on trades executed on its behalf at a rate of $35 per
round-turn contract to Cargill Investor Services, Inc. Cargill
Investor Services, Inc. then reallocates $20 per round turn
contract to American Express Financial Advisors Inc., an
affiliate of IDS Futures Corporation.
Foreign Currency Transactions
Trading accounts on foreign currency denominations are
susceptible to both movements on underlying contract markets as
well as fluctuation in currency rates. Foreign currencies are
translated into U.S. dollars for closed positions at an average
exchange rate for the quarter while quarter-end balances are
translated at the quarter-end currency rates. The impact of the
translation is reflected in the statement of operations.
Statements of Cash Flows
For purposes of the statements of cash flows, cash
represents cash on deposit with the Clearing Broker in commodity
futures trading accounts.
(3) FEES
Management fees are accrued and paid monthly, incentive fees
are accrued monthly and paid quarterly, and General Partners'
administrative fees are paid annually and amortized monthly.
Trading decisions for the period of these financial statements
were made by John W. Henry & Co., Inc. ("JWH") and Sabre Fund
Management Limited ("Sabre"), the Partnership's Commodity Trading
Advisors ("CTAs"). Under agreements signed with these CTAs,
Sabre receives a monthly management fee of 1/4 of 1% of the
month-end net asset value of the Partnership under its management
and JWH receives 1/3 of 1% of the month-end net asset value under
its management. Sabre receives 18% of the Partnership's trading
profits, if any, in each quarter attributable to its trading and
JWH receives 15% of the Partnership's trading profits, if any, in
each quarter attributable to its trading.
The Partnership pays an annual administrative fee of 1.125%
and 0.25% of the beginning of the year net asset value of the
Partnership to IDS Futures Corporation and CIS Investments, Inc.,
respectively.
(4) INCOME TAXES
No provision for Federal Income Taxes has been made in the
accompanying financial statements as each partner is responsible
for reporting income (loss) based on the pro rata share of the
profits or losses of the Partnership. The Partnership is
responsible for the Illinois Personal Property and Income Tax
based on the operating results of the Partnership. Such tax
amounted to $59,243 and $0 for the periods ended September 30,
1995 and September 30, 1994, respectively, and is included in
operating expenses in the Statement of Operations.
(5) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Partnership was formed to speculatively trade Commodity
Interests. It has commodity transactions and all of its cash on
deposit at its Clearing Broker at all times. In the event that
volatility of trading of other customers of the Clearing Broker
impaired the ability of the Clearing Broker to satisfy its
obligations to the Partnership, the Partnership would be exposed
to off-balance sheet risk. Such risk is defined in Statement of
Financial Accounting Standards No. 105 ("SFAS 105") as a credit
risk. To mitigate this risk, the Clearing Broker, pursuant to
the mandates of the Commodity Exchange Act, is required to
maintain funds deposited by customers relating to futures
contracts in regulated commodities in separate bank accounts
which are designated as segregated customers' accounts. In
addition, the Clearing Broker has set aside funds deposited by
customers relating to foreign futures and options in separate
bank accounts which are designated as customer secured accounts.
Lastly, the Clearing Broker is subject to the Securities and
Exchange Commission's Uniform Net Capital Rule which requires the
maintenance of minimum net capital of at least 4% of the funds
required to be segregated pursuant to the Commodity Exchange Act.
The Clearing Broker has controls in place to make certain that
all customers maintain adequate margin deposits for the positions
which they maintain at the Clearing Broker. Such procedures
should protect the Partnership from the off-balance sheet risk as
mentioned earlier. The Clearing Broker does not engage in
proprietary trading and thus has no direct market exposure.
The counterparty of the Partnership for futures contracts
traded in the United States and most non-U.S. exchanges on which
the Partnership trades is the Clearing House associated with the
exchange. In general, Clearing Houses are backed by the
membership and will act in the event of non-performance by one of
its members or one of the members' customers and as such should
significantly reduce this credit risk. In the cases where the
Partnership trades on exchanges on which the Clearing House is
not backed by the membership, the sole recourse of the
Partnership for nonperformance will be the Clearing House.
The Partnership holds futures and futures options positions
on the various exchanges throughout the world. The Partnership
does not trade over the counter contracts. As defined by SFAS
105, futures positions are classified as financial instruments.
SFAS 105 requires that the Partnership disclose the market risk
of loss from all of its financial instruments. Market risk is
defined as the possibility that future changes in market prices
may make a financial instrument less valuable or more onerous.
If the markets should move against all of the futures positions
held by the Partnership at the same time, and if the markets
moved such that the Trading Advisors were unable to offset the
futures positions of the Partnership, the Partnership could lose
all of its assets and the partners would realize a 100% loss.
The Partnership has contracts with two CTAs who make the trading
decisions. One of the CTAs trades a program diversified among
all commodity groups, while the other is diversified among
the various futures contracts in the financials and metals group.
Both CTAs trade on U.S. and non-U.S. exchanges. Such
diversification should greatly reduce this market risk. Cash was
on deposit with the Clearing Broker in each time period of the
financial statements which exceeded the cash requirements of the
Commodity Interests of the Partnership.
The following chart discloses the dollar amount of the
unrealized gain or loss on open contracts related to exchange
traded contracts for the Partnership as of September 30, 1995:
COMMODITY GROUP UNREALIZED GAIN/(LOSS)
AGRICULTURAL COMMODITIES 2,995
FOREIGN CURRENCIES (738)
STOCK INDICES (18,998)
ENERGIES (11,730)
METALS 11,597
INTEREST RATE INSTRUMENTS 118,798
TOTAL 101,924
The range of maturity dates of these exchange traded open
contracts is October of 1995 through September of 1996. The
average open trade equity for period of January 1, 1995 to
September 30, 1995 was $1,133,387.
The margin requirement at September 30, 1995 was $2,249,059. To
meet this requirement, the Partnership had on deposit with the
Clearing Broker $27,912,371 in segregated funds and $2,146,695 in
secured funds.
(6) FINANCIAL STATEMENT PREPARATION
The interim financial statements are unaudited but reflect
all adjustments that are, in the opinion of management, necessary
to a fair statement of the results for the interim periods
presented. These adjustments consist primarily of normal
recurring accruals.
The results of operations for interim periods will not
necessarily be indicative of the operating results for the fiscal
year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
FISCAL QUARTER ENDED SEPTEMBER 30, 1995
The Partnership recorded a loss of $266,795 or $2.36 per
Unit for the third quarter of 1995. The first month of the
quarter posted a slight gain due primarily to favorable Japanese
yen positions and worldwide interest rate policies. The next two
months saw losses due to a weakened Japanese yen and difficult
foreign exchange markets, respectively. As a result, the third
quarter ended negatively for the Partnership's accounts managed
by John W. Henry & Co., Inc. and Sabre Fund Management Limited.
At September 30, 1995, John W. Henry & Co., Inc. was managing 62%
of the Partnership's assets and Sabre Fund Management Limited was
managing 38% of the Partnership's assets.
During July, the financial sector was influenced by
worldwide interest rate fluctuations. The U.S. saw the first
interest rate reduction in nearly three years. Japan and certain
European countries also took action to dampen rates, which, along
with the U.S. initiative, generated improved global market
sentiment. The U.S. dollar strengthened, attributable to what
market participants called the "Reverse Plaza Accord", as central
banks worked in concert to move the dollar higher. The
Partnership recorded a profit of $74,469 or $.69 per Unit in
July.
The weakened Japanese yen dominated the trading environment
in August. In the wake of Japan's new regulatory package
designed to encourage overseas investing, the yen plummeted
against most major currencies. The U.S. dollar clearly benefited
from this action, soaring to its highest level against the
Japanese yen in six months. Commodity trading was poor overall,
with losses in sugar, cotton, coffee and cocoa. The Partnership
recorded a loss of $12,620 or $.12 per Unit in August.
On August 22, 1995, Morris Goodwin, Jr. was appointed as a
Director of IDS Futures Corporation, one of the General Partners
of the Partnership.
In foreign exchange markets, the U.S. dollar continued to
rise until the last week of September, when it nose-dived four to
five percent against other currencies. The dollar's swift
decline followed a negative U.S. trade deficit report and lack of
continued dollar support from the Bank of Japan. Trading in
interest rates, particularly Japanese Government bonds, also led
to small losses. Crude oil positions incurred substantial losses
for the month, and trading in copper and aluminum was
unprofitable. As a result, the Partnership recorded a loss of
$328,644 or $2.93 per Unit in September.
During the quarter, additional Units sold consisted of
10,211.83 limited partnership units; there were no general
partner units sold. Additional Units sold during the quarter
represented a total of $2,866,501 before the reduction of selling
commissions and organizational costs of $246,893. Investors
redeemed a total of 2,005.91 Units during the quarter. At the
end of the quarter there were 115,870.42 Units outstanding
(including 1,934.10 Units owned by the General Partners).
During the fiscal quarter ended September 30, 1995, the
Partnership had no credit exposure to a counterparty which is a
foreign commodities exchange which was material.
The Partnership currently only trades on recognized global
futures exchanges. In the event the Partnership begins trading
over the counter contracts, any credit exposure to a counterparty
which exceeds 10% of the Partnership's total assets will be
disclosed.
See Footnote 5 of the Financial Statements for procedures
established by the General Partners to monitor and minimize
market and credit risks for the Partnership. In addition to the
procedures set out in Footnote 5, the General Partners review on
a daily basis reports of the Partnership's performance, including
monitoring of the daily net asset value of the Partnership. The
General Partners also review the financial situation of the
Partnership's Clearing Broker on a monthly basis. The General
Partners rely on the policies of the Clearing Broker to monitor
specific credit risks. The Clearing Broker does not engage in
proprietary trading and thus has no direct market exposure which
provides the General Partners assurance that the Partnership will
not suffer trading losses through the Clearing Broker.
FISCAL QUARTER ENDED SEPTEMBER 30, 1994
During the third quarter of 1994, the Partnership recorded a
loss of $1,197,101 or $39.38 per Unit. Concerns which weighed
on the markets for several months, specifically fears regarding
rising U.S. inflation, the direction of global interest rates and
difficult trade talks between the U.S. and Japan left many
markets directionless. As a result, the third quarter ended
negatively for the Partnership's accounts managed by John W.
Henry & Co., Inc. and Sabre Fund Management Limited.
July was a difficult month for traders as the dual trends of
higher global interest rates and a weak U.S. dollar suddenly
reversed direction. As a result, trading in foreign exchange was
unprofitable. Grains and precious metals registered relatively
minor losses while positions in crude oil, coffee and corn posted
gains. The Partnership recorded a loss of $623,351 or $21.01 per
Unit in July.
In August, losses were widespread throughout interest rates,
currencies, precious metals and European bonds. Japanese yen
trading contributed losses as concerns of U.S. and Japan trade
negotiations once again moved to the center stage. President
Clinton's low opinion poll ratings, his struggle to pass a crime
bill and an uncertain outlook for health care reform put the U.S.
dollar on the defensive, adding losses. The Partnership recorded
a loss of $474,634 or $15.26 per Unit in August.
In September, trading in global interest rates was difficult
as markets lacked clear direction due to a range of economic
uncertainties. Positions in gold and crude oil were unfavorable
while more traditional markets like sugar and soybeans were
profitable. Trading in foreign exchange, most notably the
European currencies, generated the majority of profits. The
Partnership recorded a loss of $99,116 or $3.11 per Unit in
September.
During the quarter, a total of 3,644 additional Units were
sold while investors redeemed a total of 112 Units. At the end
of the quarter there were 33,197.41 Units outstanding (including
640.18 Units owned by the General Partners). Additional Units
sold during the quarter represent a total of $2,893,945, before
the reduction of selling commissions and organizational costs of
$341,319.
Events subsequent to Fiscal Quarter ended September 30, 1994
During the month of October, one of the General Partners had
a change in officer positions. On October 24, 1994, Linda M.
Baird resigned as Assistant Vice President, Secretary and
Treasurer of CIS Investments, Inc. and Donald J. Zyck became
Secretary and Treasurer as of this same date.
FISCAL QUARTER ENDED JUNE 30, 1995
The Partnership recorded a profit of $1,014,167 or $9.02 per
Unit for the second quarter of 1995. The first month of the
quarter was profitable with the strongest gains derived from
foreign currency markets. The next two months saw losses in
interest rates and foreign exchange. Overall, the second quarter
ended positively for the Partnership's accounts managed by John
W. Henry & Co., Inc. and Sabre Fund Management Limited.
The decline of the U.S. dollar continued in April, with the
U.S. dollar falling 19% against the Japanese yen, 15% against the
Swiss franc and 13% against the German mark. Therefore,
positions in the foreign currency and global interest rate
markets, including those of the United States, the United
Kingdom, France and Australia resulted in strong gains for the
Partnership. The Partnership recorded a profit of $1,296,375 or
$11.71 per Unit in April.
The fixed income markets in the U.S. rose steadily in May.
Behind this move were beliefs that the U.S. economy was slowing,
inflation is remained in check, and the federal reserve was
unlikely to raise interest rates again and would possibly lower
them in the next few months. Positions in U.S. and international
fixed income markets generated strong gains during the month, but
performance results in foreign exchange partially offset these
gains. As a result, the Partnership recorded a profit of
$532,948 or $4.83 per Unit in May.
The financial sector in the month of June was influenced by
economic and political uncertainties in several major countries,
specifically the U.S., Japan, Great Britain and Germany. The
global marketplace was also confronted with the mid-month G-7
meeting in Nova Scotia, the perception that the Bundesbank would
lower the discount and Lombard rates, and the continued
U.S.-Japan trade dispute. The failing Japanese economy and
problems in the banking sector contributed to the decline of the
Nikkei, which fell below 15,000 for the first time since August
1992. As a result of these uncertainties, the Partnership
recording a loss of $815,156 or $7.52 per Unit in June.
There were no additional Units sold during the quarter.
Investors redeemed a total of 3,063.91 Units during the quarter.
At the end of the quarter there were 107,664.51 Units outstanding
(including 1,934.10 Units owned by the General Partners).
FISCAL QUARTER ENDED JUNE 30, 1994
During the second quarter of 1994, the Partnership recorded
a profit of $1,159,020 or $42.03 per Unit. The first month of
the second quarter was difficult due in part to losses in
interest rates and "soft" commodities. However, the next two
months saw profitable trends in physical commodities and
financials. As a result, the second quarter ended positively for
the Partnership's accounts managed by John W. Henry & Co., Inc.
and Sabre Fund Management Limited.
During April, the U.S. Federal funds rate was increased for
the third time in three months, causing U.S. bonds to weaken and
contributing to the overall decline in global fixed income.
Gains resulting from the continued strength of the Japanese yen
against the U.S. dollar were offset by losses in other
currencies. Further, trading in silver, soybean oil, cotton and
sugar was unprofitable. Therefore, the Partnership recorded a
loss of $110,329 or $4.63 per Unit in April.
In May, the downward trend dominating bond markets since
January continued. Overall, short positions in U.S. and European
interest rate markets resulted in gains and provided the primary
source of profits in May. Trading in foreign exchange was
unfavorable, with losses in the Japanese yen, German mark and
Swiss franc. Positions in crude oil generated gains, and long
positions in coffee were profitable as prices rose in reaction to
a freeze in the coffee growing regions of Brazil. The
Partnership recorded a gain of $716,242 or $27.29 per Unit in
May.
During the month of May, one of the General Partners had
some changes in officer positions. On May 25, 1994, John R.
Thomas resigned as President and Director of IDS Futures
Corporation and Janis E. Miller became President and Director as
of this same date.
After an extended period of lackluster trading, strong
trends began to emerge in currency markets during June. The U.S.
dollar declined against major European currencies, with long
positions in these currencies generating substantial gains. In
commodities, profits in crude oil outweighed losses in grains,
cotton and sugar. Crude oil prices rose as OPEC affirmed its
commitment to hold production to current levels. The Partnership
recorded a gain of $553,107 or $19.37 per Unit in June.
During the quarter, a total of 5,974 additional Units were
sold while investors redeemed a total of 135 Units. At the end
of the quarter there were 29,666.38 Units outstanding (including
559.98 Units owned by the General Partners). Additional Units
sold during the quarter represent a total of $4,778,839, before
the reduction of selling commissions and organizational costs of
$566,415.
FISCAL QUARTER ENDED MARCH 31, 1995
The Partnership recorded a profit of $3,279,154 or $29.36
per Unit for the first quarter of 1995. The first month of the
year was difficult due in part to losses in global interest rates
and foreign exchange. However, the next two months saw
profitable trends in the financial markets. As a result, the
first quarter ended positively for the Partnership's accounts
managed by John W. Henry & Co., Inc. and Sabre Fund Management
Limited.
As a result of the 3-for-1 unit split on February 28, 1995,
the income (loss) per unit of partnership interest for January
and February as shown below was calculated by dividing the income
(loss) for each month by the Units outstanding for each month
times three in order to compare performance to the March income
(loss) per Unit.
In January the financial markets were impacted by
speculation regarding a possible Federal Reserve monetary
tightening as a further effort to moderate domestic economic
growth and inflation. The continued uncertainty regarding the
financial crisis in Mexico and possible ramifications of the
earthquake in Kobe, Japan also weighed on the financial markets.
Therefore, the Partnership recorded a loss of $725,716 or $6.68
per Unit (or $20.06 per Unit prior to the 3-for-1 split) in
January.
During the month of February, global political and financial
events, including the sudden demise of the British merchant bank,
Barings PLC, sent stock prices falling around the world and
investors rushing to safety in German marks and U.S. bonds. The
German mark benefited substantially from the uncertain state of
many world economies and gained steadily versus the U.S. and
other European currencies. There was a global lack of support
for the U.S. dollar as it declined against many European
currencies and sank to new postwar lows versus Japanese yen.
Long positions in foreign exchange and favorable positions in the
Japanese markets generated substantial gains for the Partnership.
As a result, the Partnership recorded a profit of $1,987,901 or
$17.85 per Unit (or $53.57 per Unit prior to the 3-for-1 split)
in February.
The decline in value of the U.S. dollar gained momentum and
accelerated in March. Market participants ignored efforts by
central bankers to support the dollar, including an unanticipated
move by the German Bundesbank to lower short term rates late in
March. By month end, the dollar reached yet another postwar low.
Positive performance during the month was dominated by strong
trends in foreign exchange. Gains in currency positions,
global interest rates and stock indexes resulted in the
Partnership recording a profit of $2,016,969 or $18.19 per Unit
in March.
The number of both limited and general partnership units
increased dramatically in the first quarter due largely to the
3-for-1 unit split on February 28, 1995. The 3-for-1 unit split
created an additional 72,932.75 limited partnership units and an
additional 1,289.40 general partner units. As a result of the
3-for-1 unit split, the profit (loss) per unit of partnership
interest as shown in the foregoing Statement of Operations and
the Statements of Changes in Partners' Capital was calculated by
dividing the January 1, 1995 Net Asset Value per Unit by three
for comparison purposes of performance to the March 31, 1995 Net
Asset Value per Unit (the January 1, 1995 Net Asset Value per
Unit was $657.24 per unit before the 3-for-1 split and $219.08
after the 3-for-1 split).
During the quarter, additional Units sold consist of 969.53
limited partnership units and 4.52 general partner units.
Additional Units sold during the quarter represent a total of
$701,402, before the reduction of selling commissions and
organizational costs of $80,754. Investors redeemed a total of
645.37 Units during the quarter. At the end of the quarter there
were 110,728.43 Units outstanding (including 1,934.10 Units owned
by the General Partners).
FISCAL QUARTER ENDED MARCH 31, 1994
During the first quarter of 1994, the Partnership recorded a
loss of $271,106 or $16.26 per Unit. The first two months of the
year were especially difficult as the interest rate and currency
markets were unsettled, showing little direction. March,
however, brought some stability to the markets. As a result, the
first quarter ended on a negative note for the Partnership's
accounts of Sabre Fund Management Limited but positive for John
W. Henry & Co., Inc.
Trading in the financial sector, particularly in global
interest rates which had contributed to much of last year's
substantial returns, began the year on a negative note. The
Japanese financial markets were unsettled due to the initial
failure of the government to generate support for its economic
revival package. Trading in foreign currency exchange was also
negative as the U.S. dollar seesawed against the German mark and
Japanese yen throughout the month. Therefore, the Partnership
posted a loss of $661,502.74 or $31.64 per Unit in January.
Considerable uncertainty and resulting volatility continued
in the financial markets in February. The Federal Reserve raised
its short term Federal funds rate potentially signaling higher
rates in the months ahead. Global interest rate markets reacted
sharply as prices fell around the world. In addition, the
speculation of a trade war between the U.S. and Japan caused
price fluctuations in the yen/dollar relationship. Overall,
profits in global interest rates were offset by losses in the
foreign exchange markets. The Partnership recorded a loss of
$506,529.42 or $22.22 per Unit in February.
March was a profitable month for both of the traders of the
Partnership. Accelerating worldwide economic and political
turmoil created sharp declines in global stock and bond prices.
Political unrest, including trade tensions between the U.S. and
Japan, an assassination in Mexico, instability in Russia and a
potential conflict in Korea weighed heavily on the financial
markets. Collapsing markets provided definite trend following
opportunities in which both traders were able to profit. Trading
in currencies, most notably the Japanese yen, German mark and
Swiss franc also contributed to gains. Increased investor demand
for silver caused a profitable uptrend for the traders. The
Partnership posted a gain of $896,925.61 or $37.60 per Unit in
March.
During the quarter an 2,966.45 additional Units were sold
while investors redeemed a total of 47.86 Units. At the end of
the quarter there were 23,827.77 Units outstanding (including the
559.98 Units owned by the General Partners.) Additional Units
sold during the quarter represent a total of $2,241,690, before
the reduction of selling commissions and organizational costs of
$264,513.60.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
None
b) Reports on Form 8-K
None
SIGNATURES
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 and thereunto duly authorized.
Date: November , 1995 IDS MANAGED FUTURES, L.P.
By: CIS Investments, Inc.
One of its General Partners
Date: November , 1995 By: /s/ Donald J. Zyck,
Secretary & Treasurer
(Duly authorized officer of the
General Partner and the
Principal Financial Officer of
the General Partner)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from IDS Managed
Futures, L.P. for the third quarter of 1995 and is qualified in its entirety by
reference to such 10-Q.
</LEGEND>
<CIK> 0000809061
<NAME> IDS MANAGED FUTURES L.P.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1995
<CASH> 30,059,066
<SECURITIES> 0
<RECEIVABLES> 200,786
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 30,259,852
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 30,259,852
<CURRENT-LIABILITIES> 701,809
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 29,558,043
<TOTAL-LIABILITY-AND-EQUITY> 30,259,852
<SALES> 0
<TOTAL-REVENUES> 229,882
<CGS> 0
<TOTAL-COSTS> 496,677
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (266,795)
<INCOME-TAX> 0
<INCOME-CONTINUING> (266,795)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (266,795)
<EPS-PRIMARY> (2.36)
<EPS-DILUTED> (2.36)
</TABLE>
