<PAGE>
FILED PURSUANT TO RULE 424(b)(3)
REGISTRATION NO. 033-86894
IDS MANAGED FUTURES, L.P.
SUPPLEMENT DATED JANUARY 1, 2001
TO THE
PROSPECTUS DATED APRIL 11, 2000
This Supplement updates certain information in the IDS Managed
Futures, L.P. Prospectus dated April 11, 2000 regarding the allocation of the
Fund's assets between the Trading Advisors and certain information that the
Commodity Futures Trading Commission requires to be updated every nine
months. All capitalized terms used in this Supplement have the same meanings
as in the Prospectus unless specified otherwise. Prospective investors should
review the contents of both this Supplement and the Prospectus carefully
before deciding whether to invest in the Fund.
Exhibit I of this Supplement describes the reallocation of Fund
assets between the Fund's Trading Advisors, John W. Henry & Company, Inc.
("JWH-Registered Trademark-") and Welton Investment Corporation ("Welton").
Exhibit I also includes a description of Welton's Alpha Portfolio, a third
trading program the Fund began utilizing January 1, 2001. Exhibit II of this
Supplement updates the Breakeven Table set forth on page 7 of the Prospectus
as well as the references to the breakeven amount in the Prospectus. Exhibit
II also updates the charges to the Fund, a description of which is set forth
on pages 44 through 48 of the Prospectus, to reflect changes made to the
Trading Advisors' management and incentive fees effective October 1, 2000 as
well as the reduced brokerage commissions paid by the Fund for the account
using the Alpha Portfolio. Exhibit III contains an updated version of the
Fund's performance record set forth on page 15 of the Prospectus. In
addition, Exhibit III updates the performance records of the trading programs
used by JWH and Welton, including a performance record for Welton's Alpha
Portfolio. Exhibit IV contains updated background information for the
principals of the Fund's general partners - CIS Investments, Inc. ("CISI")
and IDS Futures Corporation ("IDS Futures") - and Trading Advisors. Exhibit V
contains an unaudited statement of financial condition at October 31, 2000
for CISI.
--------------------------
All information in the Prospectus is restated,
except as updated in this Supplement.
--------------------------
NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR ANY STATE SECURITIES COMMISSION HAS
APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
--------------------------
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT
PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL
NOR HAS THE COMMISSION PASSED UPON THE ADEQUACY OR
ACCURACY OF THIS DISCLOSURE DOCUMENT SUPPLEMENT.
CIS INVESTMENTS, INC. / IDS FUTURES CORPORATION
CO-GENERAL PARTNERS
<PAGE>
EXHIBIT I
REALLOCATION OF FUND ASSETS
Effective January 1, 2001, the General Partners reallocated the
Fund's assets 50% to JWH and 50% to Welton. From July 1997 through December
2000, the Fund allocated 65% of new subscription proceeds to JWH and the
remaining 35% to Welton. Future subscription proceeds will be allocated 50%
to JWH and 50% to Welton.
ADDITION OF WELTON'S ALPHA PORTFOLIO
As of January 1, 2000, the Fund began utilizing a third trading
program, Welton's Alpha Portfolio. A description of Welton's Alpha Portfolio
is set forth below. Welton applied the Alpha Portfolio to a trading account
equal in size to twice the Fund's Net Asset Value as of January 1, 2001. At
the beginning of each month, the size of this trading account will be
adjusted to equal twice the Fund's current Net Asset Value. By adding the
Alpha Portfolio, a greater percentage of the Fund's assets are being
committed as margin for trading, which increases the potential for trading
gains and the risk of trading losses. Expanding the Partnership's trading to
include the Alpha Portfolio will not add any fixed cost to the overall
portfolio as Welton's sole compensation for this trading program will be a
performance fee equal to 20% of the Trading Profits generated by this program.
Set forth below is a description of Welton's investment products
used by the Fund, which updates the information set forth on pages 4 and 39
of the Prospectus.
WELTON'S INVESTMENT PRODUCTS
Welton offers products in two alternative investment style classes
- Managed Futures and Market Neutral - to institutional, fund, corporate, and
qualified individual clients. Within each alternative investment style class
are different categories of investment products.
The Managed Futures class offers an investment product, the
Diversified Portfolio, that utilizes diversified trading styles and
quantitative investment models across the global futures, options and
currency markets. It is designed to achieve attractive absolute rates of
return with low correlation to the returns of traditional asset classes as
well as other skill-based alternative investment strategies.
The Market Neutral class offers an investment product, the Alpha
Portfolio, that utilizes a narrower group of trading styles on a much more
limited group of highly liquid global futures, options and currency markets.
The Alpha Portfolio focuses upon trading styles with substantially lower
dependence on correct directional positioning and the timing of those
positions. The main goal of this investment product is to provide a source of
significant, durable diversification to other skill-based alternative asset
investments, managed futures allocations, and traditional asset allocations.
For each account of the Fund traded pursuant to a Welton investment
product, the General Partners expect that the assets committed to meet
minimum exchange margin
-2-
<PAGE>
requirements for all positions will remain generally between 5% and 20% of the
trading size of each account, but may, from time to time, be greater or less
than this range. Cargill Investor Services, Inc. ("CIS"), the Fund's clearing
broker, will use the Fund's assets allocated to Welton to margin positions in
both accounts traded by Welton. All investments, including those offered by
Welton, involve the risk of loss.
DIVERSIFIED PORTFOLIO
The Diversified Portfolio has the goal of achieving attractive
rates of return from diversified investments while continually managing risk.
This portfolio employs a diverse set of investment styles applied over broad
market and instrument sets. The Diversified Portfolio seeks to achieve
investment style, timing and market diversification unavailable from
traditional managed investments. Market diversification is provided through
investments in futures, forward and options contracts in various selected
domestic and global interest rate, currency, equity index, precious and base
metal, agricultural and petroleum product markets.
ALPHA PORTFOLIO
The Alpha Portfolio is highly specialized and designed to provide
clients with significant diversification of investment returns from both
traditional asset classes and, in particular, from other managed futures and
alternative investment portfolios. Compared to the other Welton investment
products, the Alpha Portfolio utilizes fewer trading styles on a more limited
group of highly liquid global futures and options markets. The Alpha
Portfolio trading styles are specifically focused on opportunities that have
a low dependence on correct directional positioning and the timing of taking
those positions. The trading styles that constitute the Alpha Portfolio have
been employed continuously within Welton's other portfolios since October
1996 and have been collectively described by Welton as Non/Limited Price
Directional.
ADDITIONAL RISKS YOU FACE
LACK OF TRADING HISTORY
Welton has utilized the Alpha Portfolio for client accounts since
April 2000, although the trading styles that constitute the Alpha Portfolio
have been employed within Welton's other portfolios since October 1996.
However, past performance is not necessarily indicative of future results.
OPTIONS TRADING IS SPECULATIVE AND HIGHLY LEVERAGED
The Alpha Portfolio is a relative value strategy that utilizes
options. An option is a right, purchased for a certain price, to either buy
or sell an underlying futures contract during a specified period of time for
a fixed price. Trading options is speculative and highly leveraged. Specific
market movements of the futures contracts underlying an option cannot
accurately be predicted. If the Fund purchases an option, it will be subject
to the risk of losing the entire purchase price of the option. On the other
hand, if the Fund writes (sells) an option it will be subject to the risk of
loss resulting from the difference between the amount the purchaser pays the
Fund for the option and the price of the futures contract underlying the
option which the Fund must purchase or deliver upon exercise of the option.
-3-
<PAGE>
GREATER ASSETS COMMITTED TO TRADING INCREASES THE RISK OF SUDDEN, MAJOR LOSSES
The following updates the information set forth in "The Risks" on
the cover page of the Prospectus, "Major Risks of the Fund" on page 6 of the
Prospectus, and "The Risks You Face - The Large Size of the Fund's Trading
Positions Increases the Risk of Sudden, Major Losses" on page 9 of the
Prospectus:
By adding Welton's Alpha Portfolio, the Fund anticipates that the
face value of its positions will range from 7 to 40 times its aggregate Net
Asset Value. Consequently, even small price movements can cause major losses.
-4-
<PAGE>
EXHIBIT II
BREAKEVEN TABLE
The following table updates the Breakeven Table set forth on page 7
of the Prospectus. The Breakeven Table has been updated to reflect the
changes made to the Trading Advisors' management and incentive fees, which
became effective October 1, 2000 and are described in more detail below.
Additionally, the Breakeven Table has been updated to reflect the estimated
increase in the brokerage commissions that the Fund will pay as a result of
using the Alpha Portfolio. Finally, the Breakeven Table has been updated to
reflect the increased interest income earned by the Fund on its deposits with
the Clearing Broker as a result of the higher interest rates currently
available.
BREAKEVEN TABLE
<TABLE>
<CAPTION>
TWELVE-MONTH DOLLAR
TWELVE-MONTH BREAKEVEN ($1,000
EXPENSES PERCENTAGE BREAKEVEN INITIAL INVESTMENT)++
-------- -------------------- -------------------
<S> <C> <C>
Sales Charge* 6.00% $60.00
Offering Expense Charge 3.00% $30.00
Administrative Fee 1.375% $13.75
Brokerage Fees 3.50% $35.00
Advisory Management Fees** 2.00% $20.00
Advisory Incentive Fees** 1.25% $12.50
Periodic Operating Expenses 1.00% $10.00
LESS Interest Income** (5.40)% ($54.00)
RETURN ON $1,000 INITIAL INVESTMENT
REQUIRED FOR "BREAKEVEN" IF UNITS
HELD AT LEAST TWELVE MONTHS 12.725% $127.25
------ -------
</TABLE>
-------------------------------------
* Limited Partners who are representatives or employees of American
Express Financial Advisors Inc. or certain corporate affiliates will
not pay a Sales Charge.
**Estimated. JWH and Welton each charge the Fund a management fee
equal to 2% per annum of the Fund's assets it manages. JWH receives a
quarterly incentive fee of 20% of the Trading Profits it generates.
Welton receives a quarterly incentive fee of 20% of the Trading Profits
it generates from the Diversified Portfolio and 20% of the Trading
Profits it generates from the Alpha Portfolio. Because the incentive
fee is calculated separately for each trading program the Fund uses, an
incentive fee could be due in a breakeven or losing year.
++Assumes a constant $1,000 Net Asset Value.
References in the Prospectus to the expenses of the Fund and/or the
breakeven percentage are made on the cover page under the section titled "The
Risks" and on page 8 in the section titled "The Risks You Face." In both
instances, the information contained in the Breakeven Table above supersedes
the information in the Prospectus.
-5-
<PAGE>
CHARGES
Effective October 1, 2000, the Fund began paying both Trading
Advisors a monthly management fee equal to 1/6 of 1% (a 2% annual rate) and a
quarterly incentive equal to 20% of Trading Profits. Prior to October 1,
2000, the Fund paid JWH a monthly management fee equal to 1/3 of 1% (a 4%
annual rate) and a quarterly incentive fee equal to 15% of Trading Profits.
Welton charged the Fund a monthly management fee equal to 1/4 of 1% (a 3%
annual rate) and a quarterly incentive fee equal to 18% of Trading Profits
prior to October 1, 2000.
Beginning January 1, 2001, the Fund began trading an account using
Welton's Alpha Portfolio. The Fund will pay Welton a quarterly incentive fee
equal to 20% of the Trading Profits generated by this account, which will be
in addition to any incentive fee paid to Welton for Trading Profits generated
by the Fund's account using the Diversified Portfolio. Welton continues to
receive a monthly management fee of 1/6 of 1%, which is calculated on the
size of the trading account managed by Welton pursuant to its Diversified
Portfolio. No management fee is being charged to the Fund's account using the
Alpha Portfolio.
CIS, the Fund's clearing broker, and American Express Financial
Advisors Inc., the Fund's introducing broker, have agreed to charge the
Fund's account using Welton's Alpha Portfolio a brokerage commission rate
equal to their cost of executing and clearing the trades attributable to
Welton's Alpha Portfolio. For the Fund's accounts using the Trading Advisors'
other programs, the Fund continues to pay a brokerage commission rate equal
to $35 per round turn trade plus NFA, exchange, clearing, give-up, electronic
trading and EFP fees, if applicable, and any differentials for non-U.S.
exchanges, if applicable.
References in the Prospectus to the management and incentive fees
charged by the Trading Advisors are made in the Breakeven Table on page 7 of
the Prospectus (which is updated above) and in the "Charges" section that
begins on page 44 of the Prospectus. In all instances, the information above
supersedes the information in the Prospectus.
-6-
<PAGE>
EXHIBIT III
PERFORMANCE OF THE TRADING ADVISORS
Set forth below is the performance of the Fund from January 1995
through October 31, 2000. This information updates the performance record of
the Fund set forth on page 15 of the Prospectus.
As described in Exhibit I of this Supplement, the General Partners
reallocated the Fund's assets equally between JWH and Welton and began using
Welton's Alpha Portfolio effective January 1, 2001. From July 1997 through
December 2000, the Fund allocated 65% of new subscription proceeds to JWH and
the remaining 35% to Welton. As described in Exhibit II of this Supplement,
effective October 1, 2000 the Trading Advisors reduced their annual
management fees to 2% and increased their incentive fees to 20% of Trading
Profits. Prior to October 1, 2000, JWH charged the Fund a 4% annual
management fee and 15% of Trading Profits and Welton charged the Fund a 3%
annual management fee and 18% of Trading Profits.
Capsule performance records for JWH's Financial and Metals
Portfolio and Welton's Diversified Portfolio, which update the performance
record of JWH set forth on page 35 of the Prospectus and the performance
record of Welton set forth on page 42 of the Prospectus, are set forth below.
Capsule performance information is also provided below for Welton's Alpha
Portfolio.
ADVISORY AGREEMENTS
On page 29 of the Prospectus, it states that the terms of the
advisory contract between the Fund and Welton extend to December 31, 2000.
The Fund and Welton extended the term of their agreement until December 31,
2001.
-7-
<PAGE>
PERFORMANCE OF THE FUND
IDS MANAGED FUTURES, L.P.
NAME OF POOL: IDS MANAGED FUTURES, L.P.
TYPE OF POOL: PUBLICLY OFFERED
INCEPTION OF TRADING: JUNE 16, 1987
AGGREGATE SUBSCRIPTIONS: $61,517,196
NET ASSET VALUE ON NOVEMBER 30, 2000: $31,191,978
WORST MONTHLY DECLINE: (7.57)% (10/99)
WORST PEAK TO VALLEY DECLINE: (33.09)% (7/99-9/00)
<TABLE>
<CAPTION>
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
MONTHLY
PERFORMANCE 2000 1999 1998 1997 1996 1995
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
January (5.23)% (4.20)% (2.88)% 3.68% 4.07% (3.05)%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
February (3.48)% (0.65)% (0.36)% 0.08% (3.48)% 8.41%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
March (1.00)% (4.62)% 0.94% (0.18)% (0.16)% 7.90%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
April (0.79)% 1.42% (6.22)% (2.00)% 3.50% 4.71%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
May (2.81)% 2.57% 2.49% (5.51)% (2.44)% 1.86%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
June (6.63)% 5.08% (3.54)% 2.74% 0.51% (2.84)%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
July (3.31)% (2.91)% (0.97)% 11.05% (1.09)% 0.27%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
August 0.55% (3.01)% 12.72% (4.38)% 0.47% (0.05)%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
September (6.63)% (5.60)% 9.70% 1.73% 3.34% (1.14)%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
October 6.52% (7.57)% (2.96)% (1.17)% 9.26% (0.26)%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
November 9.04% (0.39)% (5.24)% 1.67% 6.71% 2.43%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
December 0.69% 6.46% 1.61% (1.48)% 3.42%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
Compound Annual Rate (14.04)%
of Return (11 months) (18.20)% 8.55% 8.68% 20.08% 23.03%
---------------------- ---------------- --------------- --------------- --------------- ---------------- ---------------
</TABLE>
Prior to July 1997, Fund assets were allocated equally between JWH
and Sabre Fund Management Limited. In July 1997, the Fund's assets were
reallocated 65% to JWH, 30% to Welton and 5% to Sabre. Sabre's advisory
contract terminated December 31, 1997 and its allocation of Fund assets was
moved to Welton. Effective January 1, 2001, Fund assets were reallocated 50%
to JWH and 50% to Welton.
Monthly rates of return are calculated by dividing net performance
for the month by beginning equity.
Worst peak-to-valley decline means the greatest cumulative
percentage decline in month-end net asset value during any period in which
the initial month-end net asset value for the period is not equaled or
exceeded by a subsequent month-end net asset value. Worst peak-to-valley
decline is calculated by comparing the initial month-end net asset value to
each subsequent month-end net asset value. A new trading "peak" is
established each time the month-end net asset value exceeds all prior
month-end net asset values.
The performance record shown above depicts the CFTC required
performance for the past five years and year to date. The performance record
of the Fund from inception through December 1994 is set forth on page 1 of
Part Two of the Prospectus.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
-8-
<PAGE>
PERFORMANCE OF THE JWH FINANCIAL AND METALS PORTFOLIO
PROGRAM COMPOSITION
Interest Rates Currencies
Non U.S. Stock Indices Precious and Base Metals
INCEPTION OF CLIENT ACCOUNT TRADING: OCTOBER 1982
INCEPTION OF CLIENT ACCOUNT TRADING IN PROGRAM: OCTOBER 1984
ASSETS MANAGED (EXCLUDING NOTIONAL FUNDS) ON OCTOBER 31, 2000: $1.0 BILLION
ASSETS MANAGED PURSUANT TO THE PROGRAM (EXCLUDING NOTIONAL FUNDS)
ON OCTOBER 31, 2000: $278 MILLION
NUMBER OF OPEN ACCOUNTS: 19
WORST MONTHLY DECLINE ON AN INDIVIDUAL ACCOUNT BASIS: (10.1)% (2/96)
WORST PEAK-TO-VALLEY DECLINE ON AN INDIVIDUAL
ACCOUNT BASIS: (47.9)% (10/98 - 10/00)
AVERAGE COMPOUNDED ANNUALIZED RATE OF RETURN FROM
JANUARY 1995 THROUGH OCTOBER 2000: 6.7%
AVERAGE COMPOUNDED ANNUALIZED RATE OF RETURN
FROM INCEPTION THROUGH OCTOBER 2000: 28.7%
<TABLE>
<CAPTION>
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
MONTHLY
PERFORMANCE 2000 1999 1998 1997 1996 1995
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
January (3.6)% (4.8)% (3.5)% 4.4% 6.0% (3.8)%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
February (6.2)% 0.9% (4.0)% (2.2)% (5.5)% 15.7%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
March (2.3)% (2.6)% (1.6)% (0.7)% 0.7% 15.3%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
April 2.5% 1.6% (7.9)% (2.9)% 2.3% 6.1%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
May (2.1)% 5.9% 3.2% (8.3)% (1.7)% 1.2%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
June (9.0)% 6.1% (4.8)% 4.1% 2.2% (1.7)%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
July (1.7)% (2.3)% (0.9)% 15.8% (1.1)% (2.3)%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
August (0.4)% (3.1)% 17.5% (3.7)% (0.8)% 2.1%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
September (6.2)% (7.0)% 15.3% 2.2% 3.2% (2.1)%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
October 9.3% (8.1)% (3.8)% 2.0% 14.3% 0.3%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
November (3.2)% (7.5)% 2.5% 10.9% 2.6%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
December (2.8)% 8.9% 2.9% (2.6)% 1.7%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
Compound Annual Rate
of Return (19.0)% (18.7)% 7.2% 15.2% 29.7% 38.5%
----------------------- --------------- ---------------- ---------------- --------------- ---------------- ----------------
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
-9-
<PAGE>
PERFORMANCE OF THE WELTON DIVERSIFIED PORTFOLIO
INCEPTION OF CLIENT ACCOUNT TRADING: FEBRUARY 1989
INCEPTION OF CLIENT ACCOUNT TRADING IN PROGRAM: APRIL 1992
ASSETS MANAGED (EXCLUDING NOTIONAL FUNDS) ON NOVEMBER 30, 2000: $68,000,000*
ASSETS MANAGED PURSUANT TO THE PROGRAM (EXCLUDING NOTIONAL FUNDS)
ON NOVEMBER 30, 2000: $61,000,000*
NUMBER OF OPEN ACCOUNTS: 17
WORST MONTHLY DECLINE: (15.94)% (2/96)
WORST PEAK-TO-VALLEY DECLINE: (28.82)% (10/98 - 9/00)
AVERAGE COMPOUNDED ANNUALIZED RATE OF RETURN FROM JANUARY 1995
THROUGH NOVEMBER 30, 2000: 10.08%*
AVERAGE COMPOUNDED ANNUALIZED RATE OF RETURN FROM INCEPTION
THROUGH NOVEMBER 30, 2000: 12.33%*
<TABLE>
<CAPTION>
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
MONTHLY
PERFORMANCE 2000 1999 1998 1997 1996 1995
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
January (5.97)% (2.26)% (1.71)% 2.42% 5.94% (3.94)%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
February 2.33% (2.54)% 6.81% 6.21% (15.94)% 8.90%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
March 4.35% (7.90)% 6.18% (1.57)% (1.86)% 10.11%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
April (6.62)% 1.12% (3.50)% 0.28% 4.66% 3.57%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
May (2.81)% (3.34)% 2.30% 3.78% (7.71)% 11.71%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
June (2.14)% 3.43% (0.84)% 5.96% (1.72)% (1.38)%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
July (4.78)% (3.82)% (0.25)% 12.83% (2.83)% (2.57)%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
August 3.09% (2.33)% 5.63% (6.16)% (2.70)% (1.25)%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
September (7.13)% (1.61)% 2.35% 1.25% 7.48% 1.55%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
October 2.60% (7.10)% (4.66)% (6.14)% 13.16% (7.39)%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
November 1.90%* 6.79% 2.65% 2.79% 9.97% 4.77%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
December 8.05% 2.04% 1.23% 2.15% 9.44%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
Compound Annual
Rate of Return (15.01)%* (12.13)% 17.52% 23.62% 7.17% 36.35%
---------------------------- -------------- --------------- --------------- ------------- ------------ --------------
</TABLE>
See "Notes to Performance of Welton's Portfolios" on Page 12 of this Supplement.
* Estimated.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
-10-
<PAGE>
PERFORMANCE OF THE WELTON ALPHA PORTFOLIO
INCEPTION OF CLIENT ACCOUNT TRADING: FEBRUARY 1989
INCEPTION OF CLIENT ACCOUNT TRADING IN PROGRAM: APRIL 2000
ASSETS MANAGED (EXCLUDING NOTIONAL FUNDS) ON NOVEMBER 30, 2000: $68,000,000*
ASSETS MANAGED PURSUANT TO THE PROGRAM (EXCLUDING NOTIONAL FUNDS)
ON NOVEMBER 30, 2000: $7,000,000*
NUMBER OF OPEN ACCOUNTS: 10
WORST MONTHLY DECLINE: (2.79)% (4/00)
WORST PEAK-TO-VALLEY DECLINE: (2.79)% (4/00)
AVERAGE COMPOUNDED ANNUALIZED RATE OF RETURN FROM INCEPTION OF CLIENT TRADING
THROUGH NOVEMBER 30, 2000: N/A
<TABLE>
<CAPTION>
---------------------------- --------------
MONTHLY
PERFORMANCE 2000
---------------------------- --------------
<S> <C>
January
---------------------------- --------------
February
---------------------------- --------------
March
---------------------------- --------------
April (2.79)%
---------------------------- --------------
May 0.51%
---------------------------- --------------
June 1.23%
---------------------------- --------------
July 1.64%
---------------------------- --------------
August 2.58%
---------------------------- --------------
September 0.16%
---------------------------- --------------
October (0.67)%
---------------------------- --------------
November 0.91%*
---------------------------- --------------
December
---------------------------- --------------
Compound Annual
Rate of Return 3.53%*
---------------------------- --------------
</TABLE>
See "Notes to Performance of Welton's Portfolios" on Page 12 of this Supplement.
* Estimated.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
-11-
<PAGE>
NOTES TO PERFORMANCE OF WELTON'S PORTFOLIOS
The monthly rates of return presented in the composite performance
capsule above are calculated based on the "Fully-Funded Subset" method as
prescribed by the CFTC. These rates of return are calculated by dividing the
sum of the monthly net performance (I.E. the aggregate of net performance for
each of the accounts qualifying for inclusion in the Fully-Funded Subset) by
the sum of the actual monthly beginning net asset values for each account
included in the Fully-Funded Subset. Monthly rates of return are then
compounded to arrive at the compounded annual rate of return.
The Fund's accounts traded by Welton will not be fully-funded
accounts. The Fund allocated 50% of its Net Assets to Welton on January 1, 2001,
but instructed Welton to trade the Fund's Diversified Portfolio account as if it
were one-half the Fund's Net Asset Value on such date and the Fund's Alpha
Portfolio account as if it were twice the Fund's Net Asset Value on such date.
By treating the accounts as if they are greater in size than the amount of
actual funds deposited in the accounts, the Fund is "leveraging" its investment.
Increasing the leverage increases the potential for trading gains and the risk
of trading losses as well as the expected volatility of returns in the account.
Generally, the rates of return of a leveraged account vary from the rates of
return of an unleveraged account approximately in accordance with the amount of
leverage used. For example, if the Fund deposited $1 million of actual funds in
the Alpha Portfolio account and Welton traded that account as if it were a $2
million account (I.E., two times leverage), the rates of return of the Fund's
account, when calculated on the basis of the $1 million of actual funds, should
be approximately two times the rates of return, positive or negative, of a
fully-funded account.
-12-
<PAGE>
EXHIBIT IV
Set forth below is updated information regarding the principals of
IDS Futures and JWH. This information updates the sections titled "The
General Partners" set forth on pages 24 through 27 of the Prospectus and "JWH
Principals" set forth on pages 31 through 34 of the Prospectus. There have
been no changes to the background information of the principals of CISI or
Welton since the date of the Prospectus.
GENERAL PARTNERS
IDS FUTURES
JOHN BOEDER resigned as President and director in October 2000.
KRISTI L. PETERSEN (born March 1965) is President of IDS Futures
Corporation. Ms. Petersen was elected President of IDS Futures in October
2000. Ms. Petersen has been employed by American Express Financial
Corporation since August 1997. Since July 2000, she has held the title Vice
President of the Non-Proprietary Products Group for American Express
Financial Corporation. She has overall responsibility for the non-proprietary
products offered through American Express Financial Advisors' distribution
channels. In addition, she oversees American Express Financial Advisors'
direct investment and limited partnership business. From 1997 to 2000, Ms.
Petersen was director of Product Strategy and Development for retirement and
wrap products. From 1987 to 1997, she has held numerous product management,
strategic planning and financial audit positions within the financial
services industry. From June 1995 to July 1997, she was Senior Product
Manager of the Investment Products and Business Retirement Plans for U.S.
Bank responsible for the overall management and profitability of investment
products and business retirement plans distributed through U.S. Bancorp
Investments. From August 1994 to September 1995, Ms. Petersen was a Strategic
Planning Analyst for U.S. Bank which developed "Bank 2000," the strategic
plan for the retail bank through the year 2000. She graduated from St. Cloud
State University with a B.S. degree in Finance in 1987 and the University of
St. Thomas in 1994 with a M.B.A. in Marketing.
TRADING ADVISORS
JWH
JOHN W. HENRY is also a principal of JWH Investment Management, Inc.
MR. VERNE O. SEDLACEK is also a principal of JWH Investment
Management, Inc. and he currently serves on the Board of Directors of
Commonfund Capital, Inc.
MS. ELIZABETH A.M. KENTON is no longer a principal of JWH.
MR. DAVID M. KOZAK is also a principal of JWH Investment
Management, Inc. Mr. Kozak is no longer the chairman of the subcommittee on
CTA and CPO issues of the Futures Regulation Committee of the Association of
the Bar of the City of New York.
MR. DAVID I. GINSBERG is also principal of JWH Investment
Management, Inc.
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<PAGE>
MR. JOHN A. WING is the chief executive officer of Market Liquidity
Network, LLC. He joined Market Liquidity Network, LLC in January 2000.
MR. EDWIN B. TWIST is also a principal of JWH Investment
Management, Inc.
MR. JULIUS A. STANIEWICZ is no longer a vice president of Westport
Capital Management Corporation.
MS. NANCY D. FOX, CPA, is no longer a principal of JWH.
In addition to the changes in the background information of the JWH
principals, JWH has announced that it will close its office in Westport,
Connecticut at the end of December 2000. Thereafter, JWH will conduct
business only from its office in Boca Raton, Florida. This updates the
section titled "John W. Henry & Company, Inc. -- Background" on page 28 of
the Prospectus.
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<PAGE>
EXHIBIT V
CIS INVESTMENTS, INC.
Unaudited Statement of Financial Condition
October 31, 2000
<TABLE>
<CAPTION>
ASSETS
2000
------------
<S> <C>
Assets:
Intercompany Receivable $ 1,802,491
Investments in registered commodity pools 1,280,404
------------
Total Assets $ 3,082,895
============
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Deferred Offering Costs $ 56,791
Income Taxes Payable 107,294
------------
Total liabilities 164,085
------------
Stockholder's equity:
Common stock, $100 par value. Authorized
30,000 shares; issued 10 shares 1,000
Common stock subscribed, 29,990 shares
at the years ended 1999 and October 2000, respectively 2,999,000
Less subscriptions receivable (2,999,000)
Paid-in capital 18,250,000
Less demand note receivable (18,000,000)
Retained earnings 2,667,810
------------
Total stockholder's equity 2,918,810
------------
$ 3,082,895
============
</TABLE>
This unaudited statement of financial condition, in the opinion of
management, reflects all adjustments necessary to fairly state the financial
condition of CIS Investments, Inc. at October 31, 2000. All adjustments were
of a normal and recurring nature.
PURCHASERS OF UNITS WILL NOT RECEIVE AN INTEREST IN THIS ENTITY.
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<PAGE>
ACKNOWLEDGMENT OF RECEIPT
The undersigned hereby acknowledges that the undersigned has received a copy of
the Supplement dated January 1, 2001 to the IDS Managed Futures, L.P. Prospectus
dated April 11, 2000.
<TABLE>
<CAPTION>
INDIVIDUAL SUBSCRIBERS: ENTITY SUBSCRIBERS:
<S> <C>
------------------------------- -----------------------------------
(Name of Entity)
By:
------------------------------- -------------------------------
Signature of Subscriber(s) Title:
------------------------
(Trustee, partner or
authorized officer)
Dated: ___________, 2001 Dated: ____________, 2001
</TABLE>
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