<PAGE>
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 March 31, 2000
Commission File Number 0-16515
------------------------------
IDS MANAGED FUTURES, L.P.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-1189438
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(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
--- ---
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Following are Financial Statements for the fiscal quarter ended March 31, 2000
and the additional time frames as noted:
<TABLE>
<CAPTION>
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 3/31/00 To 3/31/00 Ended 12/31/99 Ended 3/31/99 To 3/31/99
------------- ---------- -------------- ------------- ----------
<S> <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>
<PAGE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
<TABLE>
<CAPTION>
Mar 31, 2000 Dec 31, 1999
------------ ------------
<S> <C> <C>
ASSETS
Cash at Escrow Agent $0 $0
Equity in commodity futures
trading accounts:
Account balance 37,951,752 45,354,529
Unrealized gain on open
futures contracts 2,217,013 2,294,971
------------- ------------
40,168,765 47,649,500
Interest receivable 191,102 183,939
Prepaid G.P. fee $477,510 $0
------------- ------------
TOTAL ASSETS $40,837,377 $47,833,439
------------- ------------
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to AXP Advisors and CIS $62,044 $40,846
Accrued management fee 122,224 143,998
Accrued incentive fee 0 0
Accrued operating expenses 26,491 38,000
Redemptions payable 1,390,841 1,287,696
Selling and Offering Expenses Payable 819 18,912
------------- ------------
Total liabilities 1,602,419 1,529,452
Partners' Capital:
Limited partners (135,882.30 units 38,419,649 45,403,623
outstanding at 3/31/00, 145,413.46
units outstanding at 12/31/99) (see Note 1)
General partners (2,883.58 units outstanding at 815,308 900,364
3/31/00 and 12/31/99) (see Note 1)
------------- ------------
Total partners' capital 39,234,958 46,303,987
------------- ------------
TOTAL LIABILITIES AND
PARTNERS' CAPITAL $40,837,377 $47,833,439
------------- ------------
------------- ------------
Net asset per outstanding unit of partnership interest $282.74 $312.24
</TABLE>
These Statements of Financial Condition, in the opinion of management, reflects
all adjustments necessary to fairly state the financial condition of IDS Managed
Futures, L.P. (See Note 6)
<PAGE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF OPERATIONS
UNAUDITED
<TABLE>
<CAPTION>
Jan 1, 2000 Jan 1, 2000 Jan 1, 1999 Jan 1, 1999
through through through through
Mar 31, 2000 Mar 31, 2000 Mar 31, 1999 Mar 31, 1999
------------ ------------ ------------ ------------
<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 ($3,302,037) ($3,302,037) $237,177 $237,177
Change in unrealized gain (loss)
on open positions (434,888) (434,888) (4,899,126) (4,899,126)
Interest income 515,028 515,028 538,695 538,695
Foreign currency transaction gain (loss) (175,136) (175,136) (147,835) (147,835)
------------ ------------ ------------ ------------
Total revenues (3,397,033) (3,397,033) (4,271,089) (4,271,089)
EXPENSES
Commissions paid to AXP Advisors and CIS 406,669 406,669 306,463 306,463
Exchange fees 19,255 19,255 15,607 15,607
Management fees 381,338 381,338 494,564 494,564
Incentive fees 0 0 0 0
General Partner fee to IDS Futures Corp.
and CIS 159,170 159,170 198,492 198,492
Taxes Withheld (42,790) (42,790) 0 0
Operating expenses 9,500 9,500 13,500 13,500
------------ ------------ ------------ ------------
Total expenses 933,142 933,142 1,028,626 1,028,626
------------ ------------ ------------ ------------
NET PROFIT (LOSS) ($4,330,175) ($4,330,175) ($5,299,715) ($5,299,715)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST ($29.50) ($29.50) ($35.15) ($35.15)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(see Note 1) (see Note 1) (see Note 1) (see Note 1)
</TABLE>
These Statements of Operations, in the opinion of management, reflect all
adjustments necessary to fairly state the financial condition of IDS Managed
Futures, L. P. (See Note 6)
<PAGE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE PERIOD JANUARY 1, 2000 THROUGH MARCH 31, 2000
UNAUDITED
<TABLE>
<CAPTION>
Limited General
Units* Partners Partners Total
------ -------- --------- -----------
<S> <C> <C> <C> <C>
Partners' capital at January 1, 2000 145,413.46 $45,403,623 $900,364 $46,303,987
Net profit (loss) (4,245,120) (85,056) (4,330,175)
Additional Units Sold 1,377.06 432,200 0 432,200
(see Note 1)
Less Selling and Organizational Costs (33,926) 0 (33,926)
Redemptions (see Note 1) (10,908.23) (3,137,128) (3,137,128)
----------- ----------- --------- ------------
Partners' capital at March 31, 2000 135,882.29 $38,419,649 $815,308 $39,234,958
----------- ----------- --------- ------------
----------- ----------- --------- ------------
Net asset value per unit
January 1, 2000 (see Note 1) 312.24 312.24
Net profit (loss) per unit (see Note 1) (29.50) (29.50)
----------- ---------
Net asset value per unit
March 31, 2000 $282.74 $282.74
</TABLE>
* Units of Limited Partnership interest.
The 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)
<PAGE>
IDS MANAGED FUTURES, L.P.
STATEMENTS OF CASH FLOWS
UNAUDITED
<TABLE>
<CAPTION>
Jan 1, 2000 Jan 1, 1999
through through
Mar 31, 2000 Mar 31, 1999
--------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net profit (loss) ($4,330,175) ($5,299,715)
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 77,957 4,810,960
Interest receivable (7,163) (27,894)
Prepaid general partner fee (477,510) (595,477)
Accrued liabilities (12,084) (71,139)
Redemptions payable 103,145 241,401
Selling and Offering Expenses Payable (18,093) (22,405)
--------------- --------------
Net cash provided by (used in)
operating activities (4,663,923) (964,269)
Cash flows from financing activities:
Additional Units Sold 432,200 1,904,300
Selling and Offering Expenses (33,926) (168,803)
Partner redemptions (3,137,128) (1,921,916)
--------------- --------------
Net cash provided by (used in)
financing activities (2,738,854) (186,419)
--------------- --------------
Net increase (decrease) in cash (7,402,777) (1,150,688)
Cash at beginning of period $45,354,529 52,649,782
--------------- --------------
Cash at end of period $37,951,752 $51,499,094
--------------- --------------
--------------- --------------
</TABLE>
These Statements of Cash Flows, in the opinion of management, reflect all
adjustments necessary to fairly state the financial condition of IDS Managed
Futures, L. P. (See Note 6)
<PAGE>
IDS MANAGED FUTURES, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(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. ("AEFA"), formerly IDS Financial Services Inc., which acts as the
Partnership's introducing broker and selling agent. Trading decisions for the
Partnership during the period of these financials were made by two independent
commodity trading advisors, John W. Henry & Company, Inc. ("JWH") and Welton
Investment Corporation ("Welton").
Units of limited partnership interest ("Units") were offered initially by AEFA
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 on the last business day of the month; 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 Units are currently offered pursuant to a Prospectus dated April 11, 2000.
The minimum subscription size for the offering is $1,000 for investors not
affiliated with AEFA. By March 31, 2000, a total of 108,181.74 Units
representing a total investment of $37,415,206 of limited partnership interest
had been sold in the offering period commencing June 26, 1995. During the
quarter ended March 31, 2000, selling commissions of $20,960 were paid to AEFA
by the new limited partners and all new investors paid organization and offering
expenses totaling $12,966.
<PAGE>
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 Amended and Restated Limited Partnership
Agreement contains a full description of redemption and distribution procedures.
The Partnership shall be terminated on December 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.
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 and mark to market daily. 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.
<PAGE>
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 91-day Treasury bill rate for U.S. Treasury bills issued
during that month.
REDEMPTIONS
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 10 days' written notice to the General Partners.
Payment will be made within 10 business days of the effective date of the
redemption. The Partnership's Limited Partnership Agreement contains a full
description of redemption and distribution procedures.
COMMISSIONS
Brokerage commissions, National Futures Association fees, and clearing and
exchange fees are accrued on a half-turn basis on open commodity futures
contracts. The Partnership pays commissions on trades executed on its behalf at
a rate of $17.50 per half-turn contract to CIS which in turn reallocates $10 per
half-turn contract to AEFA, an affiliate of IDS Futures.
FOREIGN CURRENCY TRANSACTIONS
Trading accounts in 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 escrow agent and on deposit with the Clearing Broker in commodity
futures trading accounts.
<PAGE>
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
(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 periods covered in these
financial statements were made by JWH and Welton, the Partnership's Commodity
Trading Advisors ("CTAs"). See Note 1 for the specific periods of trading for
each CTA.
Under signed agreement, JWH receives a monthly management fee of 1/3 of 1% of
the month-end net asset value of the Partnership assets under its management and
15% of the Partnership's net trading profits, if any, attributable to its
management.
Under signed agreement, Welton receives a monthly management fee of 1/4 of 1% of
the month-end net asset value of the Partnership assets under its management and
18% of the Partnership's net trading profits, if any, attributable to its
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 State Partnership Information and
Replacement Tax based on the operating results of the Partnership. Such tax
amounted to $0 for both the periods ended March 31, 2000 and March 31, 1999.
(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
<PAGE>
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 nonperformance 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. As of March 31, 2000 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.
The following chart discloses the dollar amount of the unrealized gain or loss
on open
<PAGE>
contracts related to exchange traded contracts for the Partnership as of
March 31, 2000:
<TABLE>
<CAPTION>
COMMODITY GROUP UNREALIZED GAIN/(LOSS)
--------------- ----------------------
<S> <C>
AGRICULTURAL COMMODITIES 26,806
FOREIGN CURRENCIES 473,375
STOCK INDICES 105,571
ENERGIES (129,710)
METALS 159,478
INTEREST RATE INSTRUMENTS 1,581,493
-------------
TOTAL 2,217,013
</TABLE>
The range of maturity dates of these exchange traded open contracts is April of
2000 to December 2000. The average open trade equity for the period of January
1, 2000 to March 31, 2000 was $10,752,745. 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 margin requirement at March 31, 2000 was $6,938,295. To meet this
requirement, the Partnership had on deposit with the Clearing Broker $34,804,515
in segregated funds and $5,364,250 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 for a fair statement of the results
for the interim periods presented. These adjustments consist primarily of normal
recurring accruals. These interim financial statements should be read in
conjunction with the audited financial statements of the Partnership for the
year ended December 31, 1999, as filed with the Securities and Exchange
Commission on March 28, 2000, as part of its Annual Report on Form 10-K.
The results of operations for interim periods are not necessarily indicative of
the operating results to be expected for the fiscal year.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation
FISCAL QUARTER ENDED MARCH 31, 2000
The Partnership recorded a loss of $4,330,175 or $29.50 per Unit for the first
quarter of 2000. This compares to a loss of $5,299,715 or $35.15 per Unit for
the first quarter of 1999.
In the first month of the quarter the Partnership posted a loss resulting
primarily from volatility in the currency sector. The Partnership posted a loss
for the second month of the quarter resulting primarily from trading in global
interest rates. During the third month of the quarter currency destabilization
and massive capital shifts out of the U.S. dollar resulted in a loss for the
Partnership. Overall, the first quarter of fiscal 2000 ended negatively for the
Fund accounts managed by JWH(R) and Welton. At March 31, 2000, JWH was managing
approximately 60% of the Fund's assets and Welton was managing approximately 40%
of the Fund's assets.
January 2000 marked the turning of the millennium. This coupled with the
build-up to Y2K came and went without a hitch. However, the currency sector was
all but quiet as extreme volatility prompted large swings in the price of the
U.S. dollar relative to the Japanese yen. Within the first couple of days of the
New Year, the Japanese banks intervened and started pouring money into the
dollar. This abrupt reversal in the dollar/yen relationship resulted in a
reversal of partnership positions from long yen to short yen within a matter of
days. Short Australian dollar positions proved difficult and also resulted in
losses. Stock indices, namely the Nikkei fell in response to volatility in the
tech sector, which is factored into that index. . Long positions hurt the
Partnership performance as did long positions in the S&P 500 and Paris CAC-40
index. Sustained long coffee positions were unprofitable as coffee prices
continue to fall. Despite realizing profits from short U.S. bond and long
Japanese Government Bond positions, as well as maintaining long profitable crude
oil and short aluminum positions, the Partnership posted overall losses. All in
all, the Partnership posted a loss of $2,423,590 or $16.34 per Unit in January.
Changing expectations regarding economic growth and inflation created a
difficult trading environment in February. The strategic news item was the U.S.
Federal Reserve's decision to buy back part of the debt, which led to a powerful
rally in the U.S.30-year bond. The decision by the Fed created havoc in
partnership interest rate portfolio, which was dominated by short positions.
Losses were taken in North American, Asian, and European interest rates. The
yield on the 10-year U.S. government bond currently exceeds that of the 30-year,
creating an inverted yield curve, which is a very unusual occurrence. Currency
trading was mixed. Profitable long U.S. dollar positions were bolstered by the
revised 4th quarter GNP number, which reflected a robust economy. However, gains
in the dollar were offset by losses incurred by long
<PAGE>
European/short Japanese positions. Surging energy prices supported
performance in non-financial markets. Food and grain markets were once again
featureless. Precious metals trading suffered as gold prices rallied and then
fell sharply. Equity indices gained on some lost ground in January as U.S.
and European equity indices rose. Long positions here had a small positive
impact. On March 2, the General Partners received a letter from Verne
Sedlacek, President of John W. Henry & Company, Inc. detailing modifications
to the Financial and Metals trading program. All changes are designed to add
balance to the program without giving up any upside potential. Most
noteworthy are the dramatic reductions in precious metals and Far Eastern
interest rate trading as well as the addition of offshore stock indices, base
metals, and expansion of non-dollar currency trading. JWH remains steadfast
in their commitment to research. Overall, the Partnership posted a loss of
$1,495,665 or $10.30 per Unit in February.
In March, profit taking in U.S. stocks led to massive capital shifts out of the
U.S. dollar and into the Japanese yen. These events destabilized currency and
stock markets worldwide and resulted in losses for the Partnership. The
appreciation of the yen contributed to Partnership losses in that long positions
in the dollar and euro versus the yen both suffered. Marginal gains in dollar
positions against Europe and Australia's currencies proved inadequate in
offsetting these losses. Non-financial markets were, for the most part, quiet in
March. Profits in long crude oil, heating oil, and gasoline positions were
reduced when OPEC agreed to expand oil production. Performance in precious, as
well as, industrial metals was down slightly. The food and grain markets were
featureless. Positive performance in March came from the interest rate sector.
The 7% correction in tech stocks coupled with the U.S. treasury's continued
buying of longer dated bonds led to positive performance in our bond position.
The European Central Bank's decision to raise short-term interest rates led to
purchasing European bonds, which assisted our position as well. Stock indices,
namely the appreciation in the S&P 500 contributed to Partnership performance.
Overall, the Partnership posted a loss of $410,920 or $2.86 per Unit in March.
During the quarter there were 1,377.06 additional Units sold to the Limited
Partners (there were no Units sold to the General Partners). Additional Units
sold during the quarter represented a total of $432,200 before the reduction of
selling commissions and organizational costs of $33,926. Investors redeemed a
total of 10,908.23 Units during the quarter. At the end of the quarter there
were 138,765.87 Units outstanding (including 2,883.58 Units owned by the General
Partners).
During the fiscal quarter ended March 31, 2000, 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 Fund'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
<PAGE>
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 Fund. 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, 1999
The Partnership recorded a loss of $5,299,715 or $35.15 per Unit for the first
quarter of 1999. This compares to a loss of $1,141,392 or $8.18 per Unit for the
first quarter of 1998.
In the first month of the quarter the Partnership posted a loss resulting
primarily from volatility in the currency sector as well as Japanese interest
rates. The Partnership posted a small loss for the second month of the quarter
resulting primarily from trading in interest rates. During the third month of
the quarter concerns about the military conflict in Kosovo mounted. As a result
the global markets experienced increased volatility, namely in precious metals
and interest rates, and the Partnership posted a small loss. Overall, the first
quarter of fiscal 1999 ended negatively for the Partnership accounts managed by
JWH and Welton. At March 31, 2000, JWH was managing 66% of the Partnership's
assets and Welton was managing 34% of the Partnership's assets.
Currencies were the most volatile sector for the month of January; namely short
positions in the British pound and long positions in the Japanese yen. The
anxiously awaited Euro began trading and started out the year on a positive note
as short positions rendered small profits for the Partnership. The only
profitable interest rate market was in Germany where the Partnership maintained
a long German bund position, thereby taking advantage of falling German rates.
Short positions in the Japanese government bond and Australian bond positions
created losses for the Partnership. Coffee prices vacillated; rising in December
and falling in January. The Partnership posted losses from long coffee
positions. Long sugar positions were also unprofitable. The Nikkei stock index
provided the majority of the loss in the stock indices, as short positions were
unprofitable. Crude oil prices showed no direction during the month. Short
positions were retained during January and resulted in a small loss for the
Partnership. All in all, the Partnership posted a loss of $2,423,515 or $16.03
per Unit in January.
In February, agricultural prices declined steadily throughout the month as the
Partnership was positioned to profit from short positions coffee, corn, wheat,
and soybeans. Energy prices eroded allowing short positions in crude and heating
oil to provide profits. Long silver positions in the precious metals sector were
profitable and the Nikkei stock index provided gains amidst a falling and then
rising market. Currency
<PAGE>
trading rendered gains from short positions in the Euro, British pound and
Swiss franc as each currency declined against the U.S. dollar. These gains
were able to cover losses in the Australian dollar and Japanese yen. Interest
rates were the only unprofitable sector for the Partnership. On the plus
side, the Partnership was able to take advantage of rising interest rates in
the U.S. 10-year notes and 30-year bonds. However, long Japanese government
bond and German bund positions recorded more significant losses. Overall, the
Partnership posted a loss of $356,905 or $2.36 per Unit in February.
In March, silver and gold positions were extremely volatile as the Partnership
recorded losses from long silver positions and short gold positions. Short bond
positions in Australia and in the United Kingdom were unprofitable as interest
rates in both began to rise. However, long Japanese government bond positions
were the largest loser in this sector as bond prices plummeted. The price
decline in the agricultural complex, which provided profit opportunities during
February from short positions, saw a reversal in March as sustained short corn
and coffee positions gave back profits. Currencies were the most favorable
sector for the Partnership. A flight to quality in the U.S. dollar has provided
opportunities for the Partnership to profit from long U.S. dollar positions
versus the Euro and Swiss franc. The conflict in Kosovo has exacerbated the
crisis-related selling of the Euro and the flow of money into the U.S. dollar.
The Nikkei stock index moved sharply higher during March and the Partnership
profited from long positions. Long positions in the Australian All-Ordinaries
index were also profitable. A sharp rise in energy prices gave way to profits
from long positions in crude oil. Rumors of gasoline shortages as well as the
decision of world oil producers to cut oil production pushed crude prices higher
throughout the month. Overall, the Partnership posted a loss of $2,519,295 or
$16.76 per Unit in March.
During the quarter there were 4,855.95 additional Units sold to the Limited
Partners (there were no Units sold to the General Partners). Additional Units
sold during the quarter represented a total of $1,904,300 before the reduction
of selling commissions and organizational costs of $168,803. Investors redeemed
a total of 5,349.65 Units during the quarter. At the end of the quarter there
were 150,725.48 Units outstanding (including 2,884.19 Units owned by the General
Partners).
During the fiscal quarter ended March 31, 1999, 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
<PAGE>
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.
<PAGE>
PART II. OTHER INFORMATION
<TABLE>
<CAPTION>
<S> <C>
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
None.
</TABLE>
<PAGE>
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 12, 2000 By: CIS Investments, Inc.,
One of its General Partners
By: /s/ Rebecca Steindel
--------------------
Rebecca Steindel
Treasurer and Secretary
(Duly authorized officer of the General Partner and the Principal Financial
Officer of the General Partner)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IDS MANAGED
FUTURES I, L.P. FOR THE FIRST QUARTER OF 2000 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 40,168,765
<SECURITIES> 0
<RECEIVABLES> 668,612
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 40,837,377
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 40,837,377
<CURRENT-LIABILITIES> 1,602,419
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 39,234,958
<TOTAL-LIABILITY-AND-EQUITY> 40,837,377
<SALES> 0
<TOTAL-REVENUES> (3,397,033)
<CGS> 0
<TOTAL-COSTS> 933,142
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,330,175)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,330,175)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,330,175)
<EPS-BASIC> (29.50)
<EPS-DILUTED> (29.50)
</TABLE>
