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, 1997 or
Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File 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 March 31, 1997,
and the additional time frames as noted:
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 3/31/97 To 3/31/97 Ended 12/31/96 Ended 3/31/96 To 3/31/96
-------------- -------------- -------------- -------------------------
<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
IDS MANAGED FUTURES, L.P.
STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
Mar 31, 1997 Dec 31, 1996
--------------- -------------
<S> <C> <C>
ASSETS
Cash at Escrow Agent $0 $650,100
Equity in commodity futures
trading accounts:
Account balance 43,028,499 39,998,782
Unrealized gain on open
futures contracts 871,730 868,069
--------------- -------------
43,900,229 41,516,951
Interest receivable 157,855 152,358
Prepaid G.P. fee 415,554 0
--------------- -------------
Total assets $44,473,638 $41,669,309
=============== =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to AXP Advisors and $61,617 $70,003
Accrued management fee 130,639 108,053
Accrued incentive fee 60,405 851,045
Accrued operating expenses 63,356 155,590
Redemptions payable 200,520 132,361
Selling and Offering Expenses Payable 119,332 57,309
--------------- -------------
Total liabilities 635,867 1,374,361
Partners' Capital:
Limited partners ( 128,437.73 units 43,061,505 39,545,527
outstanding at 3/31/97, 122,175.79
units outstanding at 12/31/96) (see Note 1)
General partners (2,315.34 units outstanding 776,266 749,421
3/31/97 and 2,315.34 at 12/31/96) (see Note 1)
--------------- -------------
Total partners' capital 43,837,771 40,294,948
--------------- -------------
Total liabilities and
partners' capital $44,473,638 $41,669,309
=============== =============
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)
IDS MANAGED FUTURES, L.P.
STATEMENTS OF OPERATIONS
UNAUDITED
Jan 1, 1997 Jan 1, 1997 Jan 1, 1996 Jan 1, 1996
through through through through
Mar 31, 1997 Mar 31, 1997 Mar 31, 1996 Mar 31, 1996
--------------- ------------- -------------- -------------
<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 $2,018,205 $2,018,205 $626,430 $626,430
Change in unrealized gain (loss)
on open positions 3,661 3,661 (332,242) (332,242)
Interest income 471,237 471,237 359,594 359,594
Foreign currency transaction gain (loss) (281,612) (281,612) (46,403) (46,403)
--------------- ------------- -------------- -------------
Total revenues 2,211,492 2,211,492 607,379 607,379
EXPENSES
Commissions paid to AXP Advisors and CIS 210,790 210,790 191,135 191,135
Exchange fees 8,076 8,076 5,846 5,846
Management fees 371,749 371,749 253,074 253,074
Incentive fees 62,390 62,390 2,083 2,083
General Partner fee to IDS Futures Corp. and 138,502 138,502 111,767 111,767
Operating expenses (22,124) (22,124) (41,096) (41,096)
--------------- ------------- -------------- -------------
Total expenses 769,384 769,384 522,809 522,809
--------------- ------------- -------------- -------------
Net profit (loss) $1,442,108 $1,442,108 $84,570 $84,570
=============== ============= ============== =============
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST $11.59 $11.59 $0.80 $0.80
=============== ============= ============== =============
(see Note 1) (see Note 1) (see Note 1) (see Note 1)
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)
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period January 1, 1997 through March 31, 1997
UNAUDITED
Limited General
Units* Partners Partners Total
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Partners' capital at January 1, 1997 122,175.79 $39,545,527 $749,421 $40,294,948
Net profit (loss) 1,415,262 26,845 1,442,107
Additional Units Sold 9,164.28 3,371,200 0 3,371,200
(see Note 1)
Less Selling and Organizational Costs (296,158) 0 (296,158)
Redemptions (see Note 1) (2,902.34) (974,326) (974,326)
--------------- ------------- -------------- -------------
Partners' capital at March 31, 1997 128,437.73 $43,061,505 $776,266 $43,837,771
=============== ============= ============== =============
Net asset value per unit
January 1, 1997 (see Note 1) 323.68 323.68
Net profit (loss) per unit (see Note 1) 11.59 11.59
------------- --------------
Net asset value per unit
March 31, 1997 $335.27 $335.27
* Units of Limited Partnership interest.
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)
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CASH FLOWS
UNAUDITED
Jan 1, 1997 Jan 1, 1996
through through
Mar 31, 1997 Mar 31, 1996
--------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net profit (loss) $1,442,108 $84,570
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 (3,661) 332,243
Interest receivable (5,497) 7,208
Prepaid general partner fee (415,554) (335,300)
Accrued liabilities (868,676) (124,828)
Redemptions payable 68,159 (203,060)
Selling and Offering Expenses Payable 62,023 (16,829)
--------------- -------------
Net cash provided by (used in)
operating activities 278,901 (255,996)
Cash flows from financing activities:
Additional Units Sold 3,371,200 1,413,400
Selling and Offering Expenses (296,158) (126,466)
Partner redemptions (974,326) (753,552)
--------------- -------------
Net cash provided by (used in)
financing activities 2,100,716 533,382
--------------- -------------
Net increase (decrease) in cash 2,379,617 277,386
Cash at beginning of period 40,648,882 31,440,196
--------------- -------------
Cash at end of period $43,028,499 $31,717,582
=============== =============
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, 1997
(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. Trading
decisions for the Partnership are made by two independent
commodity trading advisors, John W. Henry & Company, 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, June 26, 1995 and July 31, 1996. 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.
On June 26, 1995, a 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. On July 12,
1996 a post-effective amendment was declared effective with the
SEC to update the information in the Prospectus dated June 26,
1995. The Units were offered pursuant to a Prospectus dated July
31, 1996 until April 30, 1997. A post-effective amendment was
filed on March 28, 1997 to update the information in the
Prospectus dated July 31, 1996. As of the date of the filing of
this Form 10-Q, this post-effective amendment has not yet
declared effective The minimum subscription size for the
offering is $1,000 for investors not affiliated with AXP
Advisors. By March 31, 1997, a total of 45,159.72 Units
representing a total investment of $14,072,309 of limited
partnership interest had been sold in the offering period
commencing June 26, 1995. During the quarter ended March 31,
1997, selling commissions of $195,022 were paid to AXP Advisors
by the new limited partners and all new investors paid
organization and offering expenses totaling $101,136.
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 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 & Company, 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 $21,606 and $1,261 for the periods ended March 31,
1997 and March 31, 1996, 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, 1997:
COMMODITY GROUP UNREALIZED GAIN (LOSS)
AGRICULTURAL COMMODITIES (1,290)
FOREIGN CURRENCIES 257,125
STOCK INDICES (37,053)
ENERGIES 5,944
METALS 171,870
INTEREST RATE INSTRUMENTS 475,134
TOTAL 871,730
The range of maturity dates of these exchange traded open
contracts is April of 1997 to March of 1998. The average open
trade equity for the period of January 1, 1997 to March 31, 1997
was $1,685,753.
The margin requirement at March 31, 1997 was $2,383,692. To
meet this requirement, the Partnership had on deposit with the
Clearing Broker $39,319,216 in segregated funds and $4,581,013 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 are not
necessarily indicative of the operating results to be expected
for the fiscal year.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation
Fiscal Quarter ended March 31, 1997
The Partnership recorded a gain of $1,442,108 or $11.59 per
Unit for the first quarter of 1997. This compares to gain of
$84,570 or $0.80 per Unit for the first quarter of 1996.
During the first two months, the Partnership experienced
gains primarily as a result of profits in foreign exchange rates,
while during the third month losses were recorded due in part to
the direction of U.S interest rates. Overall, the first quarter
of fiscal 1997 ended positively for the Partnership's accounts
managed by John W. Henry & Company, Inc. and Sabre Fund
Management Limited. At March 31, 1997, John W. Henry & Company,
Inc. was managing 65% of the Partnership's assets and Sabre Fund
Management Limited was managing 35% of the Partnership's assets.
In January, the U.S. dollar continued to dominate world
currencies, reflecting both sound economic fundamentals and a
policy, shared by both the U.S. central bank and Treasury
administration officials, in support of a strong dollar. The
Japanese yen suffered from problems in the Japanese banking
sector. Rising unemployment and weak economic numbers in Germany
once again drove the German mark down against the U.S. dollar.
Trading in the British pound grew increasingly volatile as
prospects for an interest rate increase in Britain weakened.
Gold prices reached a three year low at mid-month. Therefore,
the Partnership recorded a profit of $1,484,691 or $11.92 per
Unit in January.
In February, the U.S. dollar reached new highs against the
German mark, Japanese yen and Swiss franc. The Federal Reserve
chairman hinted of a possible hike in U.S. interest rates which
sent the dollar soaring. Volatility in global interest rate
markets continued to be fueled by speculation on the direction of
global interest rates. Early in the month, central banks in
Germany, England and the U.S announced their decisions to keep
rates stable. In commodity markets, gold prices rose as demand
was rekindled by the lowest spot prices since 1993. In
agricultural markets, a two-month bull trend in coffee prices
continued as unfavorable weather and labor strife in South
America threatened supply. The Partnership recorded a gain of
$33,813 or $.27 per Unit in February.
In March, speculation over the direction of U.S. interest
rates unsettled financial markets around the world. Rising U.S.
interest rates, unease over first quarter corporate earnings and
lofty stock evaluations resulted in turmoil in U.S equity
markets. In Europe, renewed speculation about a delay in the
European Union's plans for economic and monetary union pushed the
German mark higher against the U.S. dollar. Agricultural markets
recorded profits resulting from persistent supply concerns. Due
to overall market turbulence, the Partnership recorded a loss of
$76,396 or $.60 per Unit in March.
During the quarter, additional units sold consisted of
9,164.28 limited partnership units; no general partner units were
sold . Additional Units sold during the quarter represented a
total of $3,371,200 before the reduction of selling commissions
and organizational costs of $296,158. Investors redeemed a total
of 2,902.34 Units during the quarter. At the end of the quarter
there were 130,753.07 Units outstanding (including 2,315.34 Units
owned by the General Partners).
During the fiscal quarter ended March 31, 1997, the
Partnership had no material credit exposure to a counterparty
which is a foreign commodities exchange.
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, 1996
The Partnership recorded a gain of $84,570 or $0.80 per Unit
for the first quarter of 1996. During the first month of the
quarter, the Partnership experienced gains primarily as a result
of profits in foreign exchange rates. The Partnership then
recorded a loss in the following two months due primarily to
unprofitable currency positions and losses in trading of stock
indices and metals. The first quarter of fiscal 1996 ended
positively for the Partnership's accounts managed by John W.
Henry & Company, Inc. and Sabre Fund Management Limited. At
March 31, 1996, John W. Henry & Company, 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
indices 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
indices 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
outbreak in Britain further added to economic uncertainties.
Elections in Australia, which resulted in the end of 13 years of
Labor Party rule, strengthened the Australian dollar to levels
not recorded in at least 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.
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 material credit exposure to a counterparty
which is a foreign commodities exchange.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership and its affiliates are from time
to time parties to various legal actions arising in the
normal course of business. The General Partners believe
that there is no proceeding threatened or pending
against the Partnership or any of its affiliates which,
if determined adversely, would have a material adverse
effect on the financial condition or results of
operations of the Partnership.
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
The Partnership filed a Form 8-K (Item 5) with the
Securities and Exchange Commission on April 10, 1997 to report
that notice had been given on April 1, 1997 to Sabre Fund
Management Limited, a commodity trading advisor of the
Partnership, of the intention of the Partnership to terminate the
Advisory Contract of Sabre Fund Management Limited on April 30,
1997.
The Partnership will file a Form 8-K (Item 5) with
the Securities and Exchange Commission to report that the
Partnership did not terminate the Advisory Contract with Sabre
Fund Management Limited on April 30, 1997. Sabre Fund Management
Limited remains as a commodity trading advisor of the Partnership.
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 14, 1997 By: CIS Investments, Inc.
One of its General
Partners
By: /s/ Donald J. Zyck
Donald J. Zyck,
Secretary & Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from IDS Managed
Futures, L.P. for the first quarter of 1997 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-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 43,900,229
<SECURITIES> 0
<RECEIVABLES> 573,409
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 44,473,638
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 44,473,638
<CURRENT-LIABILITIES> 635,867
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 43,837,771
<TOTAL-LIABILITY-AND-EQUITY> 44,473,638
<SALES> 0
<TOTAL-REVENUES> 2,211,492
<CGS> 0
<TOTAL-COSTS> 769,384
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,442,108
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,442,108
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,442,108
<EPS-PRIMARY> 11.59
<EPS-DILUTED> 11.59
</TABLE>
