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 March 31, 1996 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
Former name, former address and former fiscal year, if
changed since last report. Not Applicable
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 March 31, 1996,
and the additional time frames as noted:
<CAPTION>
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 3/31/96 To 3/31/96 Ended 12/31/95 Ended 3/31/95 To 3/31/95
-------------- -------------- -------------- --------------------------
<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>
Mar 31, 1996 Dec 31, 1995
--------------- -------------
<S> <C> <C>
ASSETS
Cash at Escrow Agent $0 $0
Equity in commodity futures
trading accounts:
Account balance 31,717,582 31,440,196
Unrealized gain on open
futures contracts 1,373,326 1,705,569
--------------- -------------
33,090,908 33,145,765
Interest receivable 122,901 130,109
Prepaid G.P. fee 335,300 0
--------------- -------------
Total assets $33,549,109 $33,275,874
=============== =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to AXP Advisors and $79,697 $66,688
Accrued management fee 83,171 97,719
Accrued incentive fee 0 33,129
Accrued operating expenses 51,086 141,246
Redemptions payable 167,359 370,419
Selling and Offering Expenses Payable 35,892 52,721
--------------- -------------
Total liabilities 417,205 761,922
Partners' Capital:
Limited partners ( 120,238.93 units 32,505,965 31,889,868
outstanding at 3/31/96, 118,310.37
units outstanding at 12/31/95) (see Note 1)
General partners (2,315.34 units outstanding 625,939 624,084
3/31/96 and 2,315.34 at 12/31/95) (see Note 1)
--------------- -------------
Total partners' capital 33,131,903 32,513,952
--------------- -------------
Total liabilities and
partners' capital $33,549,109 $33,275,874
=============== =============
<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>
Jan 1, 1996 Jan 1, 1996 Jan 1, 1995 Jan 1, 1995
through through through through
Mar 31, 1996 Mar 31, 1996 Mar 31, 1995 Mar 31, 1995
--------------- ------------- -------------- -------------
<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 $626,430 $626,430 $1,677,931 $1,677,931
Change in unrealized gain (loss)
on open positions (332,242) (332,242) 2,013,739 2,013,739
Interest income 359,594 359,594 315,305 315,305
Foreign currency transaction gain (loss) (46,403) (46,403) 204,487 204,487
--------------- ------------- -------------- -------------
Total revenues 607,379 607,379 4,211,462 4,211,462
EXPENSES
Commissions paid to AXP Advisors and CIS 191,135 191,135 247,888 247,888
Exchange fees 5,846 5,846 5,001 5,001
Management fees 253,074 253,074 229,709 229,709
Incentive fees 2,083 2,083 302,369 302,369
General Partner fee to AXP Advisors and CIS 111,767 111,767 81,734 81,734
Operating expenses (41,096) (41,096) 65,607 65,607
--------------- ------------- -------------- -------------
Total expenses 522,809 522,809 932,308 932,308
--------------- ------------- -------------- -------------
Net profit (loss) $84,570 $84,570 $3,279,154 $3,279,154
=============== ============= ============== =============
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST $0.80 $0.80 $29.36 $29.36
=============== ============= ============== =============
(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, 1996 through March 31, 1996
UNAUDITED
<CAPTION>
Limited General
Units* Partners Partners Total
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Partners' capital at January 1, 1996 118,310.37 $31,889,868 $624,084 $32,513,952
Net profit (loss) 82,715 1,855 84,570
Additional Units Sold 4,662.19 1,413,400 0 1,413,400
(see Note 1)
Less Selling and Organizational Costs (126,466) 0 (126,466)
Redemptions (see Note 1) (2,733.64) (753,552) (753,552)
--------------- ------------- -------------- -------------
Partners' capital at March 31, 1996 120,238.93 $32,505,965 $625,939 $33,131,903
=============== ============= ============== =============
Net asset value per unit
January 1, 1996 (see Note 1) 219.08 219.08
Net profit (loss) per unit (see Note 1) 51.26 51.26
------------- --------------
Net asset value per unit
March 31, 1996 $270.34 $270.34
* 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, 1996 Jan 1, 1995
through through
Mar 31, 1996 Mar 31, 1995
--------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net profit (loss) $84,570 $3,279,154
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 332,243 (2,013,739)
Interest receivable 7,208 (20,971)
Prepaid general partner fee (335,300) (245,202)
Accrued liabilities (124,828) 368,706
Redemptions payable (203,060) (59,252)
Selling and Offering Expenses Payable (16,829) (83,746)
--------------- -------------
Net cash provided by (used in)
operating activities (255,996) 1,224,950
Cash flows from financing activities:
Additional Units Sold 1,413,400 701,402
Selling and Offering Expenses (126,466) (80,754)
Partner redemptions (753,552) (168,056)
--------------- -------------
Net cash provided by (used in)
financing activities 533,382 452,592
--------------- -------------
Net increase (decrease) in cash 277,386 1,677,542
Cash at beginning of period 31,440,196 22,741,310
--------------- -------------
Cash at end of period $31,717,582 $24,418,852
=============== =============
<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
March 31, 1996
(1) GENERAL INFORMATION AND SUMMARY
IDS Managed Futures, L.P. (the "Partnership") is a limited
partnership organized on December 16, 1986 under the Delaware
Revised Uniform Limited Partnership Act. The Partnership was
formed to speculatively trade 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 of the
Partnership are CIS Investments, Inc. ("CISI") and IDS Futures
Corporation ("IDS Futures") (collectively, the "General
Partners"). The General Partners are registered commodity pool
operators under the Commodity Exchange Act, as amended (the "CE
Act") and are responsible for administering the business and
affairs of the Partnership exclusive of trading decisions. CISI
is an affiliate of Cargill Investor Services, Inc. ("CIS"), the
clearing broker for the Partnership. IDS Futures is an
affiliate of American Express Financial Advisors Inc. ("AXP
Advisors"), formerly 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. Trading decisions
for the Partnership are made by two independent commodity
trading advisors, John W. Henry & Co., Inc. and Sabre Fund
Management Limited.
Units of limited partnership interest ("Units") were offered
initially by AXP Advisors 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 purchase
Units at the then current net asset value per Unit; 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.
The initial offering of Units was made pursuant to a
registration statement on Form S-18 and Prospectus declared
effective with the Securities and Exchange Commission ("SEC") on
March 27, 1987. The maximum sales allowed in the offering was
$7,500,000. By the end of the offering period, subscriptions
for 29,442 Units (excluding the Units purchased by the initial
Limited Partner) had been accepted by the Partnership,
representing a total investment of $7,372,260. The minimum
subscription size was $5,000 or 20 Units for investors not
affiliated with AXP Advisors and $4,700 or 20 Units for
affiliated investors (affiliated investors did not have to pay
selling commissions of $15 per unit). In the case of
Individual Retirement Accounts and Keogh Plans the minimum
subscription size was $1,000 in most jurisdictions and $940 for
affiliated investors. In June 1987, $353,280 was paid to AXP
Advisors for selling commissions and $285,822 was reimbursed to
the General Partners for organization and offering expenses
which had been incurred on behalf of the Partnership. The
trading advisors commenced trading on June 16, 1987 with
$6,733,158.
The Partnership was reopened to additional investment pursuant
to a 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 AXP Advisors. 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 the combined offerings. Selling commissions of
$1,145,552 were paid to AXP Advisors 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 the offering. Selling commissions of $38,670 were paid
to AXP Advisors by the new limited partners and all new
investors paid organization and offering expenses totaling
$42,084.
Commencing with the January 31, 1994 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.
At the close of business on February 28, 1995 each Unit was
divided into three Units (a "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.
On June 26, 1995, a new registration statement on Form S-1 was
declared effective 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 minimum
subscription size for the new offering is $1,000 for investors
not affiliated with AXP Advisors. By March 31, 1996, a total of
22,845.46 Units representing a total investment of $6,546,501 of
limited partnership interest had been sold in the new offering.
Selling commissions of $370,276 were paid to AXP Advisors by the
new limited partners. All new investors paid organization and
offering expenses totaling $196,395.
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 CIS which in turn reallocates $20 per
round turn contract to AXP Advisors, an affiliate of IDS Futures.
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"). Pursuant to an agreement between the
Partnership and JWH, JWH receives 1/3 of 1% of the month-end
net asset value of the Partnership under its management.
Pursuant to an agreement between the Partnership and Sabre dated
December 26, 1995 and effective January 1, 1996, Sabre's monthly
management fee was reduced from 1/4 of 1% to 1/8 of 1% of the
Partnership's Net Asset Value subject to Sabre's trading
performance. This reduction in management fees will continue
until such time that the cumulative trading performance of Sabre
reaches 40%. The Partnership pays JWH a quarterly incentive fee
of 15% and pays Sabre a quarterly incentive fee of 18% of
trading profits achieved on the NAV of the Partnership allocated
by the General Partners to such Advisor's management.
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 and CISI, 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 $1,261 and $49,573 for the periods ended March 31,
1996 and March 31, 1995, 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 March 31, 1996:
COMMODITY GROUP: UNREALIZED GAIN/(LOSS):
AGRICULTURAL COMMODITIES 177,823
FOREIGN CURRENCIES 97,882
STOCK INDICES (5,672)
ENERGIES 38,790
METALS (34,933)
INTEREST RATE INSTRUMENTS 1,099,436
_______
TOTAL 1,373,326
The range of maturity dates of these exchange traded open
contracts is April of 1996 to March of 1997. The average open
trade equity for period of January 1, 1996 to March 31, 1996 was
$1,563,949.
The margin requirement at March 31, 1996 was $3,477,234. To
meet this requirement, the Partnership had on deposit with the
Clearing Broker $30,647,945 in segregated funds and $2,442,963
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 March 31, 1996
The Partnership recorded a gain of $84,570 or $0.80 per Unit
for the first quarter of 1996. The first month experienced gains
primarily as a result of profits in foreign exchange. The next
two months saw losses due to unprofitable currency positions and
losses in trading of stock indices and metals. The first
quarter ended positively for the Partnership's accounts managed
by John W. Henry & Co., Inc. and Sabre Fund Management Limited.
At March 31, 1996, John W. Henry & Co., Inc. was managing 60.8%
of the Partnership's assets and Sabre Fund Management Limited
was managing 39.2% of the Partnership's assets.
In January, the primary influence on markets was the U.S.
dollar, which rose against most currencies and hit its highest
level in two years against the Japanese yen. Trading in foreign
exchange generated the majority of profits. Trading in stock
indexes was slightly profitable. The Partnership recorded a
profit of $1,324,808 or $10.98 per Unit in January.
In February, the U.S. dollar lost ground against the Japanese
yen, British pound, Swiss franc and German mark, resulting in
the Partnership giving back some of the profits earned in
January. The largest decline occurred in Japanese yen
positions. In the metals markets, subsiding inflation fears and
weakening demand pushed gold prices beneath the $400 threshold
reached only a month before. Trading in interest rates and
stock indexes was also unprofitable. The Partnership recorded a
loss of $1,188,721 or $9.76 per Unit in February.
In March, trading was volatile, reflecting investors' confusion
over the direction of the U.S. economy. In addition, political
tensions between China and Taiwan and "Mad Cow" disease in
Britain further added to economic uncertainties. Elections in
Australia, which put an end to 13 years of Labor Party rule,
boosted the Australian dollar to levels not seen in over 10
months. Trading in stock indices and metals was unprofitable.
As a result, the Partnership recorded a loss of $51,517 or $.42
per Unit in March.
On March 29, 1996, Janis E. Miller resigned as President and a
Director of IDS Futures Corporation, one of the General Partners
of the Partnership. As of the date of the filing of this Form
10-Q, a replacement for Ms. Miller had not been appointed. The
search for Ms. Miller's replacement is pending.
During the quarter, additional Units sold consisted of 4,662.19
limited partnership units; there were no general partner units
sold . Additional Units sold during the quarter represented a
total of $1,413,400 before the reduction of selling commissions
and organizational costs of $126,466. Investors redeemed a
total of 2,733.64 Units during the quarter. At the end of the
quarter there were 122,554.27 Units outstanding (including
2,315.34 Units owned by the General Partners).
During the fiscal quarter ended March 31, 1996, 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 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).
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.
IDS MANAGED FUTURES, L.P.
Date: May 10, 1996 By: CIS Investments, Inc.
One of its General Partners
Date: May 10, 1996 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 first quarter of 1996 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-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 33,090,908
<SECURITIES> 0
<RECEIVABLES> 458,201
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 33,549,109
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 33,549,109
<CURRENT-LIABILITIES> 417,205
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 33,131,903
<TOTAL-LIABILITY-AND-EQUITY> 33,549,109
<SALES> 0
<TOTAL-REVENUES> 607,379
<CGS> 0
<TOTAL-COSTS> 522,809
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 84,570
<INCOME-TAX> 0
<INCOME-CONTINUING> 84,570
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 84,570
<EPS-PRIMARY> 0.80
<EPS-DILUTED> 0.80
</TABLE>
