SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995 or
Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File Number 0-17443
IDS MANAGED FUTURES II, L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1207252
(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 September 30, 1995,
and the additional time frames as noted:
<CAPTION>
Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date
Ended 9/30/95 To 9/30/95 Ended 12/31/94 Ended 9/30/94 To 9/30/94
-------------- -------------- -------------- --------------------------
<S> <C> <C> <C> <C> <C>
Statement of
Financial Condition X X
Statement of
Operations X X X X
Statement of Changes
in Partners' Capital X
Statement of
Cash Flows X X
Notes to Financial
Statements X
IDS MANAGED FUTURES II, L.P.
STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
<CAPTION>
Sep 30, 1995 Dec 31, 1994
--------------- --------------
<S> <C> <C>
ASSETS
Equity in commodity futures
trading accounts:
Account balance $10,675,561 $8,850,144
Unrealized gain on open
futures contracts 59,907 546,622
--------------- --------------
10,735,468 9,396,766
Interest receivable 39,675 37,615
--------------- --------------
Total assets $10,775,143 $9,434,381
=============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued commissions on open
futures contracts due to IDS and CIS $34,444 $52,322
Accrued management fee 35,616 30,011
Accrued incentive fee 0 0
Accrued operating expenses 55,772 27,869
Redemptions payable 70,919 47,038
--------------- --------------
Total liabilities 196,752 157,240
Partners' Capital:
Limited partners (22,093.29 units 10,278,570 9,034,378
outstanding at 9/30/95, 23,983.41
units outstanding at 12/31/94) (see Note 1)
General partners (644.45 units out- 299,821 242,763
standing at 9/30/95 and 12/31/94) (see Note 1)
--------------- --------------
Total partners' capital 10,578,391 9,277,141
--------------- --------------
Total liabilities and
partners' capital $10,775,143 $9,434,381
=============== ==============
<FN>
See accompanying notes to financial statements.
UNAUDITED
</TABLE>
<TABLE>
IDS MANAGED FUTURES II, L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Jul 1, 1995 Jan 1, 1995 Jul 1, 1994 Jan 1, 1994
through through through through
Sep 30, 1995 Sep 30, 1995 Sep 30, 1994 Sep 30, 1994
--------------- -------------- ------------- -------------
<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 ($101,870) $3,003,837 $112,564 $18,114
Change in unrealized gain (loss)
on open positions 43,058 (486,715) (949,424) (370,251)
Interest income 118,162 356,650 99,036 253,443
Foreign currency transaction gain (loss) 427 94,151 22,300 147,199
--------------- -------------- ------------- -------------
Total revenues $59,777 $2,967,924 ($715,524) $48,504
EXPENSES
Commissions paid to IDS and CIS 94,137 252,247 114,662 357,029
Exchange fees 1,164 4,867 2,851 9,241
Management fees 108,475 322,154 106,004 327,881
Incentive fees 0 175,165 0 133,131
Operating expenses 5,376 59,809 8,490 (5,152)
--------------- -------------- ------------- -------------
Total expenses 209,151 814,242 232,006 822,130
--------------- -------------- ------------- -------------
Net profit (loss) ($149,375) $2,153,682 ($947,530) ($773,625)
=============== ============== ============= =============
PROFIT (LOSS) PER UNIT OF
PARTNERSHIP INTEREST ($6.53) $88.54 ($37.28) ($30.07)
=============== ============== ============= =============
<FN>
See accompanying notes to financial statements.
UNAUDITED
</TABLE>
<TABLE>
IDS MANAGED FUTURES II, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period January 1, 1995 through September 30, 1995
<CAPTION>
Limited General
Units* Partners Partners Total
--------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Partners' capital at January 1, 1995 23,983.41 $9,034,378 $242,763 $9,277,141
Net profit (loss) 2,096,624 57,058 2,153,682
Redemptions (see Note 1) (1,890.12) (852,432) 0 (852,432)
--------------- -------------- ------------- -------------
Partners' capital at September 30, 1995 22,093.29 $10,278,570 $299,821 $10,578,391
=============== ============== ============= =============
Net asset value per unit
January 1, 1995 $376.69 $376.69
Net profit (loss) per unit 88.54 88.54
-------------- -------------
Net asset value per unit
September 30, 1995 $465.23 $465.23
* Units of Limited Partnership interest.
<FN>
See accompanying notes to financial statements.
UNAUDITED
</TABLE>
<TABLE>
IDS MANAGED FUTURES II, L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Jan 1, 1995 Jan 1, 1994
through through
Sep 30, 1995 Sep 30, 1994
--------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net profit/(loss) $2,153,682 ($773,625)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Change in assets and liabilities:
Unrealized gain (loss) on open
futures contracts 486,715 370,251
Interest receivable (2,060) (7,840)
Accrued liabilities 15,632 (79,596)
Redemptions payable 23,881 29,462
--------------- --------------
Net cash provided by (used in)
operating activities 2,677,850 (461,348)
Cash flows from financing activities:
Partner redemptions (852,432) (687,172)
--------------- --------------
Net cash provided by (used in)
financing activities (852,432) (687,172)
--------------- --------------
Net increase (decrease) in cash 1,825,418 (1,148,520)
Cash at beginning of period 8,850,144 11,322,539
--------------- --------------
Cash at end of period $10,675,561 $10,174,019
=============== ==============
<FN>
See accompanying notes to financial statements.
UNAUDITED
</TABLE>
IDS MANAGED FUTURES II, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(1) GENERAL INFORMATION AND SUMMARY
IDS Managed Futures II, L.P. (the "Partnership"), a limited
partnership organized in April 1987 under the Delaware Revised
Uniform Limited Partnership Act, was formed to engage in the
speculative trading of 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 are IDS
Futures Corporation and CIS Investments, Inc. The clearing
broker is Cargill Investor Services, Inc. (the "Clearing
Broker"), the parent company of CIS Investments, Inc. IDS
Futures Corporation is an affiliate of IDS Financial Services
Inc. which acts as the Partnership's introducing broker and
selling agent. Effective January 1, 1995, IDS Financial
Corporation, the parent company of IDS Financial Services Inc.,
changed its name to American Express Financial Corporation and
IDS Financial Services Inc. changed its name to American Express
Financial Advisors Inc. These were solely name changes; the
management and structure of each company did not change.
Units of limited partnership interest ("Units") were offered
by IDS Financial Services Inc. commencing July 14, 1987 through
December 31, 1988. The total amount of the offering was
$40,000,000. There is no definite number of Units authorized for
the Partnership because investors affiliated with the Selling
Agent of the Partnership were not required to pay selling
commissions. As of December 31, 1988, 60,127.14 Units
representing a total investment of $14,983,249 had been sold and
accepted into the Partnership (excluding 627.95 Units purchased
by the General Partners for $150,110). A final group of
investors purchasing Units worth $423,750 between December 20,
1988 and December 31, 1988 were admitted into the Partnership on
January 31, 1989, at a Net Asset Value of $255.27. The General
Partners also purchased an additional $3,960 of Units on January
31, 1989.
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 Limited Partnership
Agreement contains a full description of redemption and
distribution procedures.
The Partnership shall be terminated on December 31, 2007 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 $1,500,000; (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.
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 80 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 $58.75
per round-turn contract to Cargill Investor Services, Inc.
Cargill Investor Services, Inc. then reallocates the appropriate
portion to American Express Financial Advisors Inc.
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 Flow
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, and incentive
fees are accrued monthly and paid quarterly. Trading decisions
for the period of these financial statements were made by John W.
Henry & Co., Inc. ("JWH") and Sabre Fund Management Limited
("Sabre") the Partnership's Commodity Trading Advisors ("CTAs").
The CTAs receive a monthly management fee of 1/3 of 1% of the
month-end net asset value of the Partnership under their
management. Both of the CTAs receive 15% of the Partnership's
trading profits, if any, in each quarter attributable to each
manager's trading.
(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 $31,842 and $0 for the periods ended September 30,
1995 and September 30, 1994, respectively, and is included in
operating expenses in the Statements 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 at least equal to 4% of the
funds required to be segregated pursuant to the Commodity
Exchange Act. The Clearing Broker has controls in place to make
certain that all customers maintain adequate margin deposits for
the positions which they maintain at the Clearing Broker. Such
procedures should protect the Partnership from the off-balance
sheet risk as mentioned earlier. The Clearing Broker does not
engage in proprietary trading and thus has no direct market
exposure.
The counterparty of the Partnership for futures contracts
traded in the United States and most non-U.S. exchanges on which
the Partnership trades is the Clearing House associated with the
exchange. In general, Clearing Houses are backed by the
membership and will act in the event of non-performance by one of
its members or one of the members' customers and as such should
significantly reduce this credit risk. In the cases where the
Partnership trades on exchanges on which the Clearing House is
not backed by the membership, the sole recourse of the
Partnership for nonperformance will be the Clearing House.
The Partnership holds futures and futures options positions
on the various exchanges throughout the world. The Partnership
does not trade over the counter contracts. As defined by SFAS
105, futures positions are classified as financial instruments.
SFAS 105 requires that the Partnership disclose the market risk
of loss from all of its financial instruments. Market risk is
defined as the possibility that future changes in market prices
may make a financial instrument less valuable or more onerous.
If the markets should move against all of the futures positions
held by the Partnership at the same time, and if the markets
moved such that the Trading Advisors were unable to offset the
futures positions of the Partnership, the Partnership could lose
all of its assets and the partners would realize a 100% loss.
The Partnership has contracts with two CTAs who make the trading
decisions. One of the CTAs trades a program diversified among
all commodity groups, while the other is diversified among the
various futures contracts in the financials and metals group.
Both CTAs trade on U.S. and non-U.S. exchanges. Such
diversification should greatly reduce this market risk. Cash was
on deposit with the Clearing Broker in each time period of the
financial statements which exceeded the cash requirements of the
Commodity Interests of the Partnership.
The following chart discloses the dollar amount of the
unrealized gain or loss on open contracts related to exchange
traded contracts for the Partnership as of September 30, 1995:
COMMODITY GROUP UNREALIZED GAIN/(LOSS)
AGRICULTURAL COMMODITIES 74.00
FOREIGN CURRENCIES (2,263)
STOCK INDICES (11,380)
ENERGIES (3,060)
METALS 23,847
INTEREST RATE INSTRUMENTS 52,689
TOTAL 59,907
The range of maturity dates of these exchange traded open
contracts is October of 1995 through September of 1996. The
average open trade equity for period of January 1, 1995 to
September 30, 1995 was $530,940.
The margin requirement at September 30, 1995 was $882,751. To
meet this requirement, the Partnership had on deposit with the
Clearing Broker $9,603,854 in segregated funds and $1,131,614 in
secured funds.
(6) FINANCIAL STATEMENT PREPARATION
The interim financial statements are unaudited but reflect
all adjustments that are, in the opinion of management, necessary
to a fair statement of the results for the interim periods
presented. These adjustments consist primarily of normal
recurring accruals.
The results of operations for interim periods will not
necessarily be indicative of the operating results for the fiscal
year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
FISCAL QUARTER ENDED SEPTEMBER 30, 1995
The Partnership recorded a loss of $149,375 or $6.52 per
Unit for the third quarter of 1995. The first and third months
of the quarter posted losses due in part to trend reversals in
several key markets and difficult foreign exchange markets,
respectively. The second month of the quarter posted a gain
primarily as a result of profitable foreign exchange markets.
Overall, the third quarter ended negatively for the Partnership's
accounts managed by John W. Henry & Co., Inc. and Sabre Fund
Management Limited. At September 30, 1995, John W. Henry & Co.,
Inc. was managing 81% of the Partnership's assets and Sabre Fund
Management Limited was managing 19% of the Partnership's assets.
During July, the financial sector was influenced by
worldwide interest rate fluctuations. The U.S. saw the first
interest rate reduction in nearly three years. Japan and certain
European countries also took action to dampen rates, which, along
with the U.S. initiative, generated improved global market
sentiment. U.S. interest rate trading suffered losses, as did
positions in global stock indexes. The Partnership recorded a
loss of $64,997 or $2.80 per Unit in July.
The weakened Japanese yen dominated the trading environment
in August. In the wake of Japan's new regulatory package
designed to encourage overseas investing, the yen plummeted
against most major currencies. The U.S. dollar clearly benefited
from this action, soaring to its highest level against the
Japanese yen in six months. Traditional commodity trading was
poor overall. The Partnership recorded a profit of $92,516 or
$4.01 per Unit in August.
On August 22, 1995, Morris Goodwin, Jr. was appointed as a
Director of IDS Futures Corporation, one of the General Partners
of the Partnership.
In the foreign exchange markets, the U.S. dollar continued
to rise until the last week of September, when it nose-dived four
to five percent against other currencies. The dollar's swift
decline followed a negative U.S. trade deficit report and lack of
continued dollar support from the Bank of Japan. Trading in
interest rates, particularly Japanese Government bonds, also led
to small losses. Crude oil positions incurred substantial losses
for the month, and trading in copper and aluminum was
unprofitable. As a result, the Partnership recorded a loss of
$176,894 or $7.73 per Unit in September.
During the quarter investors redeemed a total of 449.31
Units. At the end of the quarter there were 22,737.74 Units
outstanding (including 644.45 Units owned by the General
Partners).
During the fiscal quarter ended September 30, 1995, the
Partnership had no credit exposure to a counterparty which is a
foreign commodities exchange which was material.
The Partnership currently only trades on recognized global
futures exchanges. In the event the Partnership begins trading
over the counter contracts, any credit exposure to a counterparty
which exceeds 10% of the Partnership's total assets will be
disclosed.
See Footnote 5 of the Financial Statements for procedures
established by the General Partners to monitor and minimize
market and credit risks for the Partnership. In addition to the
procedures set out in Footnote 5, the General Partners review on
a daily basis reports of the Partnership's performance, including
monitoring of the daily net asset value of the Partnership. The
General Partners also review the financial situation of the
Partnership's Clearing Broker on a monthly basis. The General
Partners rely on the policies of the Clearing Broker to monitor
specific credit risks. The Clearing Broker does not engage in
proprietary trading and thus has no direct market exposure which
provides the General Partners assurance that the Partnership will
not suffer trading losses through the Clearing Broker.
FISCAL QUARTER ENDED SEPTEMBER 30, 1994
During the third quarter of 1994, the Partnership recorded a
loss of $947,530 or $37.28 per Unit. Concerns which weighed on
the markets for several months, specifically fears regarding
rising U.S. inflation, the direction of global interest rates and
difficult trade talks between the U.S. and Japan left many
markets directionless. As a result, the third quarter ended
negatively for the Partnership's accounts managed by Chang
Crowell Management Corporation, John W. Henry & Co., Inc. and
Sabre Fund Management Limited (Note: on November 16, 1994 Chang
Crowell was terminated as an Advisor to the Partnership and on
December 12, 1994 the assets formerly managed by Chang Crowell
were allocated to Sabre Fund Management Limited).
July was a difficult month for traders as the dual trends of
higher global interest rates and a weak U.S. dollar suddenly
reversed direction. As a result, trading in foreign exchange was
unprofitable. Grains and precious metals registered relatively
minor losses while positions in crude oil, coffee and corn posted
gains. The Partnership recorded a loss of $363,403 or $14.24 per
Unit in July.
In August, losses were widespread throughout interest rates,
currencies, precious metals and European bonds. Japanese yen
trading contributed losses as concerns of U.S. and Japan trade
negotiations once again moved to the center stage. President
Clinton's low opinion poll ratings, his struggle to pass a crime
bill and an uncertain outlook for health care reform put the U.S.
dollar on the defensive, adding losses. The Partnership recorded
a loss of $504,974 or $19.90 per Unit in August.
In September, trading in global interest rates was difficult
as markets lacked clear direction due to a range of economic
uncertainties. Positions in gold and crude oil were unfavorable
while more traditional markets like sugar and soybeans were
profitable. Trading in foreign exchange, most notably the
European currencies, generated the majority of profits. The
Partnership recorded a loss of $79,153 or $3.14 per Unit in
September.
During the quarter, investors redeemed a total of 575 Units.
At the end of the quarter there were 24,949.56 Units outstanding
(including 644.45 Units owned by the General Partners).
Events subsequent to Fiscal Quarter ended September 30, 1994
During the month of October, one of the General Partners had
a change in officer positions. On October 24, 1994, Linda M.
Baird resigned as Assistant Vice President, Secretary and
Treasurer of CIS Investments, Inc. and Donald J. Zyck became
Secretary and Treasurer as of this same date.
FISCAL QUARTER ENDED JUNE 30, 1995
The Partnership recorded a profit of $494,432 or $20.62 per
Unit for the second quarter of 1995. The first month of the
quarter was profitable with the strongest gains derived from
foreign currency markets. The next two months saw losses in
interest rates and foreign exchange. Overall, the second quarter
ended positively for the Partnership's accounts managed by John
W. Henry & Co., Inc. and Sabre Fund Management Limited.
The decline of the U.S. dollar continued in April, with the
U.S. dollar falling 19% against the Japanese yen, 15% against the
Swiss franc and 13% against the German mark. Therefore,
positions in the foreign currency and global interest rate
markets, including those of the United States, the United
Kingdom, France and Australia resulted in strong gains for the
Partnership. The Partnership recorded a profit of $535,107 or
$22.46 per Unit in April.
The fixed income markets in the U.S. rose steadily in May.
Behind this move were beliefs that the U.S. economy was slowing,
inflation remained in check, and the federal reserve was unlikely
to raise interest rates again and would possibly lower them in
the next few months. Positions in U.S. and international fixed
income markets generated strong gains during the month, but
performance results in foreign exchange partially offset these
gains. As a result, the Partnership recorded a profit of
$207,190 or $8.76 per Unit in May.
The financial sector in the month of June was influenced by
economic and political uncertainties in several major countries,
specifically the U.S., Japan, Great Britain and Germany. The
global marketplace was also confronted with the mid-month G-7
meeting in Nova Scotia, the perception that the Bundesbank would
lower the discount and Lombard rates, and the continued
U.S.-Japan trade dispute. The failing Japanese economy and
problems in the banking sector contributed to the decline of the
Nikkei, which fell below 15,000 for the first time since August
1992. As a result of these uncertainties, the Partnership
recording a loss of $247,865 or $10.60 per Unit in June.
During the quarter investors redeemed a total of 639.79
Units. At the end of the quarter there were 23,187.07 Units
outstanding (including 644.45 Units owned by the General
Partners).
FISCAL QUARTER ENDED JUNE 30, 1994
During the second quarter of 1994, the Partnership recorded
a profit of $749,083 or $28.81 per Unit. The first month of the
second quarter was difficult due in part to losses in interest
rates and "soft" commodities. However, the next two months saw
profitable trends in physical commodities and financials. As a
result, the second quarter ended positively for the Partnership's
accounts managed by Chang Crowell Management, Inc., John W. Henry
& Co., Inc. and Sabre Fund Management Limited.
During April, the U.S. Federal funds rate was increased for
the third time in three months, causing U.S. bonds to weaken and
contributing to the overall decline in global fixed income.
Gains resulting from the continued strength of the Japanese yen
against the U.S. dollar were offset by losses in other
currencies. Further, trading in silver, soybean oil, cotton and
sugar was unprofitable. Therefore, the Partnership recorded a
loss of $66,212.45 or $2.52 per Unit in April.
In May, the downward trend dominating bond markets since
January continued. Overall, short positions in U.S. and European
interest rate markets resulted in gains and provided the primary
source of profits in May. Trading in foreign exchange was
unfavorable, with losses in the Japanese yen, German mark and
Swiss franc. Positions in crude oil generated gains, and long
positions in coffee were particularly profitable as prices rose
in reaction to a tight supply worldwide. The Partnership
recorded a gain of $345,022.60 or $13.20 per Unit in May.
During the month of May, one of the General Partners had
some changes in officer positions. On May 25, 1994, John R.
Thomas resigned as President and Director of IDS Futures
Corporation and Janis E. Miller became President and Director as
of this same date.
After an extended period of lackluster trading, strong
trends began to emerge in currency markets during June. The U.S.
dollar declined against major European currencies, with long
positions in these currencies generating substantial gains. In
commodities, profits in coffee and crude oil outweighed losses in
grains, cotton and sugar. An already tight global coffee supply,
coupled with a freeze in coffee growing regions of Brazil, pushed
prices to their highest level since 1986, and crude oil prices
rose as OPEC affirmed its commitment to hold production to
current levels. The Partnership recorded a gain of $470,273.34
or $18.13 per Unit in June.
During the quarter, investors redeemed a total of 763.78
Units. At the end of the quarter there were 25,524.25 Units
outstanding (including 644.45 Units owned by the General
Partners).
FISCAL QUARTER ENDED MARCH 31, 1995
The Partnership recorded a profit of $1,808,624 or $74.45
per Unit for the first quarter of 1995. The first month of the
year was difficult due in part to losses in global interest rates
and foreign exchange. However, the next two months saw
profitable trends in the financial markets. As a result, the
first quarter ended positively for the Partnership's accounts
managed by John W. Henry & Co., Inc. and Sabre Fund Management
Limited.
In January the financial markets were impacted by
speculation regarding a possible Federal Reserve monetary
tightening as a further effort to moderate domestic economic
growth and inflation. The continued uncertainty regarding the
financial crisis in Mexico and possible ramifications of the
earthquake in Kobe, Japan also weighed on the financial markets.
Therefore, the Partnership recorded a loss of $288,704 or $11.72
per Unit in January.
During the month of February, global political and financial
events, including the sudden demise of the British merchant bank,
Barings PLC, sent stock prices falling around the world and
investors rushing to safety in German marks and U.S. bonds. The
German mark benefited substantially from the uncertain state of
many world economies and gained steadily versus the U.S. and
other European currencies. There was a global lack of support
for the U.S. dollar as it declined against many European
currencies and sank to new postwar lows versus Japanese yen.
Long positions in foreign exchange and favorable positions in the
Japanese markets generated substantial gains for the Partnership.
As a result, the Partnership recorded a profit of $982,093 or
$40.20 per Unit in February.
The decline in value of the U.S. dollar gained momentum and
accelerated in March. Market participants ignored efforts by
central bankers to support the dollar, including an unanticipated
move by the German Bundesbank to lower short term rates late in
March. By month end, the dollar reached yet another postwar low.
Positive performance during the month was dominated by strong
trends in foreign exchange. Gains in currency positions,
global interest rates and stock indexes resulted in the
Partnership recording a profit of $1,115,235 or $45.97 per Unit
in March.
During the quarter, investors redeemed a total of 800.98
Units. At the end of the quarter there were 23,826.88 Units
outstanding (including 644.45 Units owned by the General
Partners).
FISCAL QUARTER ENDED MARCH 31, 1994
During the first quarter of 1994, the Partnership recorded a
loss of $575,178.41 or $21.60 per Unit. The first two months of
the year were especially difficult as the interest rate and
currency markets were unsettled, showing little direction.
March, however, brought some stability to the markets. As a
result, the first quarter ended on a negative note for the
Partnership's accounts of Chang Crowell Management Corp. and
Sabre Fund Management Limited but positive for John W. Henry &
Co., Inc.
Trading in the financial sector, particularly in global
interest rates which had contributed to much of last year's
substantial returns, began the year on a negative note. The
Japanese financial markets were unsettled due to the initial
failure of the government to generate support for its economic
revival package. Trading in foreign currency exchange was also
negative as the U.S. dollar seesawed against the German mark and
Japanese yen throughout the month. Therefore, the Partnership
posted a loss of $521,504.88 or $19.63 per Unit in January.
Considerable uncertainty and resulting volatility continued
in the financial markets in February. The Federal Reserve raised
its short term Federal funds rate potentially signaling higher
rates in the months ahead. Global interest rate markets reacted
sharply as prices fell around the world. In addition, the
speculation of a trade war between the U.S. and Japan caused
price fluctuations in the yen/dollar relationship. Overall,
profits in global interest rates were offset by losses in the
foreign exchange markets. The Partnership recorded a loss of
$532,050.76 or $20.13 per Unit in February.
March was a profitable month for all three of the traders of
the Partnership. Accelerating worldwide economic and political
turmoil created sharp declines in global stock and bond prices.
Political unrest, including trade tensions between the U.S. and
Japan, an assassination in Mexico, instability in Russia and a
potential conflict in Korea weighed heavily on the financial
markets. Collapsing markets provided definite trend following
opportunities in which both traders were able to profit. Trading
in currencies, most notably the Japanese yen, German mark and
Swiss franc also contributed to gains. Increased investor demand
for silver caused a profitable uptrend for the traders. The
Partnership posted a gain of $478,377.23 or $18.16 per Unit in
March.
During the quarter investors redeemed a total of 284.59
Units. At the end of the quarter there were 26,288.04 Units
outstanding (including the 644.45 Units owned by the General
Partners.)
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
None
b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned and thereunto duly authorized.
Date: November , 1995 IDS MANAGED FUTURES II, L.P.
By: CIS Investments, Inc.
One of its General Partners
Date: November , 1995 By:/s/ Donald J. Zyck
Secretary & Treasurer
(Duly authorized Officer of
the General Partner and the
Principal Financial Officer
of the General Partner)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from IDS Managed
Futures II, L.P. for the third quarter of 1995 and is qualified in its entirety
by reference to such 10-Q.
</LEGEND>
<CIK> 0000813831
<NAME> IDS MANAGED FUTURES II, L.P.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1995
<CASH> 10,735,468
<SECURITIES> 0
<RECEIVABLES> 39,675
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,775,143
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,775,143
<CURRENT-LIABILITIES> 196,752
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 10,578,391
<TOTAL-LIABILITY-AND-EQUITY> 10,775,143
<SALES> 0
<TOTAL-REVENUES> 59,777
<CGS> 0
<TOTAL-COSTS> 209,151
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (149,375)
<INCOME-TAX> 0
<INCOME-CONTINUING> (149,375)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (149,375)
<EPS-PRIMARY> (6.53)
<EPS-DILUTED> (6.53)
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