SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period
ended June 30, 1997
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 June 30, 1997,
and the additional time frames as noted:
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 6/30/97 To 6/30/97 Ended 12/31/96 Ended 6/30/96 To 6/30/96
-------------- -------------- -------------- --------------------------
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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
Jun 30, 1997 Dec 31, 1996
--------------- -------------
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ASSETS
Cash at Escrow Agent $0 $650,100
Equity in commodity futures
trading accounts:
Account balance 41,079,067 39,998,782
Unrealized gain on open
futures contracts 2,192,445 868,069
--------------- -------------
43,271,512 41,516,951
Interest receivable 150,326 152,358
Prepaid G.P. fee 277,052 0
--------------- -------------
Total assets $43,698,890 $41,669,309
=============== =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to AXP Advisors and $150,430 $70,003
Accrued management fee 131,221 108,053
Accrued incentive fee 0 851,045
Accrued operating expenses 25,713 155,590
Redemptions payable 219,170 132,361
Selling and Offering Expenses Payable 0 57,309
--------------- -------------
Total liabilities 526,534 1,374,361
Partners' Capital:
Limited partners ( 132,732.61 units 42,336,938 39,545,527
outstanding at 6/30/97, 122,175.79
units outstanding at 12/31/96) (see Note 1)
General partners (2,619.16 units outstanding 835,418 749,421
6/30/97 and 2,315.34 at 12/31/96) (see Note 1)
--------------- -------------
Total partners' capital 43,172,356 40,294,948
--------------- -------------
Total liabilities and
partners' capital $43,698,890 $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
Apr 1, 1997 Jan 1, 1997 Apr 1, 1996 Jan 1, 1996
through through through through
Jun 30, 1997 Jun 30, 1997 Jun 30, 1996 Jun 30, 1996
--------------- ------------- -------------- -------------
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REVENUES
Gains on trading of commodity futures
and forwards contracts, physical
commodities and related options:
Realized gain (loss) on closed positions ($3,160,364) ($1,142,159) $1,819,261 $2,445,690
Change in unrealized gain (loss)
on open positions 1,320,714 1,324,376 (1,012,048) (1,344,290)
Interest income 481,996 953,233 381,516 741,111
Foreign currency transaction gain (loss) 78,094 (203,518) (39,555) (85,958)
--------------- ------------- -------------- -------------
Total revenues (1,279,560) 931,932 1,149,174 1,756,553
EXPENSES
Commissions paid to AXP Advisors and CIS 338,645 549,435 240,327 431,462
Exchange fees 9,256 17,332 6,850 12,697
Management fees 387,659 759,408 255,768 508,843
Incentive fees 0 62,390 30,212 32,294
General Partner fee to IDS Futures Corp. and 138,502 277,004 111,767 223,533
Operating expenses (6,591) (28,714) 11,478 (29,619)
--------------- ------------- -------------- -------------
Total expenses 867,471 1,636,855 656,401 1,179,210
--------------- ------------- -------------- -------------
Net profit (loss) ($2,147,031) ($704,923) $492,773 $577,343
=============== ============= ============== =============
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST ($16.31) ($4.72) $4.05 $4.85
=============== ============= ============== =============
(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 June 30, 1997
UNAUDITED
Limited General
Units* Partners Partners Total
--------------- ------------- -------------- -------------
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Partners' capital at January 1, 1997 122,175.79 $39,545,527 $749,421 $40,294,948
Net profit (loss) (693,921) (11,003) (704,924)
Additional Units Sold 15,496.89 5,596,800 100,000 5,696,800
(see Note 1)
Less Selling and Organizational Costs (492,222) (3,000) (495,222)
Redemptions (see Note 1) (4,940.06) (1,619,246) (1,619,246)
--------------- ------------- -------------- -------------
Partners' capital at June 30, 1997 132,732.62 $42,336,938 $835,418 $43,172,356
=============== ============= ============== =============
Net asset value per unit
January 1, 1997 (see Note 1) 323.68 323.68
Net profit (loss) per unit (see Note 1) (4.72) (4.72)
------------- --------------
Net asset value per unit
June 30, 1997 $318.96 $318.96
* 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
June 30, 1997 June 30, 1996
--------------- -------------
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Cash flows from operating activities:
Net profit (loss) ($704,923) $577,343
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 (1,324,376) 1,344,291
Interest receivable 2,032 11,050
Prepaid general partner fee (277,052) (223,534)
Accrued liabilities (877,327) (95,443)
Redemptions payable 86,809 (113,663)
Selling and Offering Expenses Payable (57,309) (2,207)
--------------- -------------
Net cash provided by (used in)
operating activities (3,152,147) 1,497,837
Cash flows from financing activities:
Additional Units Sold 5,696,800 2,583,600
Selling and Offering Expenses (495,222) (231,304)
Partner redemptions (1,619,246) (1,516,071)
--------------- -------------
Net cash provided by (used in)
financing activities 3,582,332 836,225
--------------- -------------
Net increase (decrease) in cash 430,185 2,334,062
Cash at beginning of period 40,648,882 31,440,196
--------------- -------------
Cash at end of period $41,079,067 $33,774,258
=============== =============
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
JUNE 30, 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 were made by two independent
commodity trading advisors, John W. Henry & Company, Inc. and
Sabre Fund Management Limited, until July 7, 1997. Effective
July 8, 1997 the General Partners added Welton Investment
Corporation as an additional independent commodity trading
advisor for the Partnership.
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 when the offering was
temporarily suspended due to the expiration of the current
Prospectus. A post-effective amendment was filed on July 31,
1997 to update the information in the Prospectus dated July 31,
1996 and to add disclosure regarding the Partnership's new
trading advisor, Welton Investment Corporation. The minimum
subscription size for the offering is $1,000 for investors not
affiliated with AXP Advisors. By June 30, 1997, a total of
51,796.14 Units representing a total investment of $16,397,909
of limited partnership interest had been sold in the offering
period commencing June 26, 1995. During the quarter ended June
30, 1997, selling commissions of $129,296 were paid to AXP
Advisors by the new limited partners and all new investors paid
organization and offering expenses totaling $69,678.
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
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 continued until the cumulative
trading performance of Sabre reached 40%, which was reached at
the end of January 1997. Therefore, the management fee was
adjusted back to 1/4 of 1% effective February 1, 1997. 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 $0 and $8,684 for the periods ended June 30, 1997
and June 30, 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 three CTAs who make the
trading decisions. Two of the CTAs trade a program diversified
among all commodity groups, while the third is diversified among
the various futures contracts in the financials and metals
group. All three 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 June 30, 1997:
COMMODITY GROUP UNREALIZED GAIN/(LOSS)
AGRICULTURAL COMMODITIES 305,728
FOREIGN CURRENCIES 489,152
STOCK INDICES 87,037
ENERGIES (6,480)
METALS 488,406
INTEREST RATE INSTRUMENTS 828,602
_______
TOTAL 2,192,445
The range of maturity dates of these exchange traded open
contracts is July of 1997 to June of 1998. The average open
trade equity for the period of January 1, 1997 to June 30, 1997
was $1,499,516.
The margin requirement at June 30, 1997 was $5,373,464. To
meet this requirement, the Partnership had on deposit with the
Clearing Broker $37,655,279 in segregated funds and $5,616,233
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 June 30, 1997
The Partnership recorded a loss of $2,147,031 or $16.31 per
Unit for the second quarter of 1997. This compares to a gain
of $492,773 or $4.05 per Unit for the second quarter of 1996.
During the first two months of the quarter the Partnership
experienced losses primarily as a result of losses in precious
metals and foreign exchange. The third month experienced gains
due to profitable positions in metals, interest rates
and stock indices. Overall, the second quarter of fiscal 1997
ended negatively for the Partnership's accounts managed by John
W. Henry & Company, Inc. and only slightly positive for Sabre
Fund Management Limited. At June 30, 1997, John W. Henry &
Company, Inc. was managing 61.8% of the Partnership's assets and
Sabre Fund Management Limited was managing 38.2% of the
Partnership's assets.
In April, yields on the U.S. Treasury 30-year bond soared to a
nine-month high, only to fall by month end resulting in losses
in interest rates. The U.S. dollar continued its rise in the
weeks leading up to the meeting of the G-7 finance ministers,
reaching new highs against the Japanese yen and the German mark.
Gains were realized in coffee as prices soared amid increasing
concerns about adequate supply. In precious metals, both gold
and silver prices declined as investors' concerns over U.S.
inflation subsided. However, the Partnership recorded a loss of
$876,680.83 or $6.70 per Unit in April.
Worldwide political events upset currency markets in May. The
British pound rallied sharply, but briefly, hitting its highest
intraday level since August 1992 after a surprise decision by
Britain's newly elected Labour Government to give the Bank of
England more autonomy in setting interest rates. In Japan,
official warnings of intervention to cap the U.S. dollar's rise
against the Japanese yen and a report that the Bank of Japan
might raise a key interest rate pushed the dollar to a 4 1/2
month low against the Japanese currency. Surprising strength in
the polls by French socialists and sharp disagreement in Germany
over the use of gold reserves to meet criteria for European
union membership threw the future of that monetary union in
doubt. Trading in stock indices and agricultural commodities
generated gains, while trading in metals was mixed. The
Partnership recorded a loss of $2,425,881.10 or $18.10 per Unit
in May.
In June, gold prices fell to a four-year low as the U.S. dollar
strengthened and inflation indicators remained favorable.
Positions in both gold and silver were profitable. Continued
uncertainty surrounding the European currency union benefited
bond markets outside the EMU circle of nations. In the currency
markets, the Swiss monetary authority's determination to keep
the franc from appreciating against major currencies succeeded
in pushing the price of that currency down. After reaching a
20-year high in May, coffee prices fell steadily in June on news
of higher world exports and concerns about the impact of high
prices on demand. The Partnership recorded a gain of
$1,155,530.98 or $8.49 per Unit in June.
On June 24, 1997, Jan R. Waye was elected Senior Vice President
of CIS Investments, Inc., a General Partner of the Partnership.
During the quarter there were 6,636.42 additional Units sold,
including 303.82 Units sold to the General Partners. Additional
Units sold during the quarter represented a total of $2,325,600
before the reduction of selling commissions and organizational
costs of $199,064. Investors redeemed a total of 2,037.70 Units
during the quarter. At the end of the quarter there were
135,351.77 Units outstanding (including 2,619.16 Units owned by
the General Partners).
During the fiscal quarter ended June 30, 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 June 30, 1996
The Partnership recorded a gain of $492,773 or $4.05 per Unit
for the second quarter of 1996. This compares to a profit of
$1,014,167 or $9.02 per Unit for the second quarter of 1995.
During the first quarter of 1996, the Partnership posted a gain
of $84,570 or $0.80 per Unit, which compares to a profit of
$3,279,154 or $29.36 per Unit for the first quarter of 1995.
Favorable positions in global currency and physical commodity
markets generated profits in the first and third months of the
quarter. The second month of the quarter saw losses in metals
and global interest rates. Overall, the second quarter ended
positively for the Partnership's accounts managed by John W.
Henry & Co., Inc. and Sabre Fund Management Limited. At June
30, 1996, John W. Henry & Co., Inc. was managing 61.5% of the
Partnership's assets and Sabre Fund Management Limited was
managing 38.5% of the Partnership's assets.
In April, crude oil prices continued to surge upwards as
refiners pushed to replenish record-low inventory levels. In
the agricultural sector, prices of wheat, corn and soybeans
soared as export demand remained strong. The currency markets
saw relatively high U.S. bond yields which attracted investors
to the U.S. dollar, thus strengthening the dollar against the
German mark and Swiss franc. The Partnership recorded a profit
of $1,161,096 or $9.48 per Unit in April.
In May, the grain and oilseed markets were volatile as concerns
over winter crops were replaced by reports of poor planting
conditions for spring crops. Crude oil prices succumbed to
political pressures and the expected impact on world oil
supplies of the long-anticipated U.N./Iraq oil agreement. In
the currency markets, the British pound declined to a two-year
low against the U.S. dollar early in the month, but rallied back
by the end of the month well ahead of the dollar as well as the
German mark. The Partnership recorded a loss of $840,378 or
$6.83 per Unit in May.
In June, the metals markets were impacted by repercussions from
the Sumitomo copper trading losses and by an increase in the
world supply of gold; the result of selling by central banks.
Crude oil prices reflected continued inventory shortages and the
renewal of tension in the Middle East. The U.S. dollar reached
a 28-month high against the Japanese yen early in the month, but
ended lower at month's end as investors turned to higher
yielding European currencies. The Partnership recorded a profit
of $172,055 or $1.40 per Unit in June.
During the quarter, additional Units sold consisted of 3,866.82
limited partnership units; there were no general partner units
sold . Additional Units sold during the quarter represented a
total of $1,170,200 before the reduction of selling commissions
and organizational costs of $104,838. Investors redeemed a
total of 2, 775 Units during the quarter. At the end of the
quarter there were 123,646.08 Units outstanding (including
2,315.34 Units owned by the General Partners).
During the fiscal quarter ended June 30, 1996, the Partnership
had no credit exposure to a counterparty which is a foreign
commodities exchange which was material.
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.
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 May 23, 1997 to
report that the Partnership did not terminate the Advisory
Contract with Sabre Fund Management Limited on April 30,
1997 as was previously reported in an 8-K filing dated
April 10. Sabre Fund Management Limited remains as a
commodity trading advisor of the Partnership.
The Partnership filed a Form 8-K (Item 5) with the
Securities and Exchange Commission on July 24, 1997 to
report that Welton Investment Corporation had been added as
a commodity trading advisor of the Partnership effective
July 8, 1997.
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: August 14, 1997 By: CIS Investments, Inc.
One of its General Partners
By: /s/ Donald J. Zyck
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 second 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> JUN-30-1997
<CASH> 43,271,512
<SECURITIES> 0
<RECEIVABLES> 427,378
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 43,698,890
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 43,698,890
<CURRENT-LIABILITIES> 526,534
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 43,172,356
<TOTAL-LIABILITY-AND-EQUITY> 43,698,890
<SALES> 0
<TOTAL-REVENUES> (1,279,560)
<CGS> 0
<TOTAL-COSTS> 867,471
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,147,031)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,147,031)
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<NET-INCOME> (2,147,031)
<EPS-PRIMARY> (16.31)
<EPS-DILUTED> (16.31)
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