<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 814-55
TECHNOLOGY FUNDING VENTURE PARTNERS IV, AN AGGRESSIVE GROWTH FUND, L.P.
- -----------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3054600
------------------------------ ---------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
- ------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
(650) 345-2200
--------------------------------------------------
(Registrant's telephone number, including area code)
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
--- ---
No active market for the units of limited partnership interests
("Units") exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
- --------------
<TABLE>
<CAPTION>
(unaudited)
March 31, December 31,
1999 1998
------------ -----------
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $13,030,875 and $12,547,986 for
1999 and 1998, respectively) $15,466,428 15,647,313
Notes receivable (cost basis of
$33,677 and $202,777 for 1999 and
1998, respectively) 33,677 202,777
---------- ----------
Total investments 15,500,105 15,850,090
Cash and cash equivalents 641,553 1,188,918
Due from related parties -- 29,771
Other assets 12,206 5,179
---------- ----------
Total assets $16,153,864 17,073,958
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 34,925 48,922
Due to related parties 13,450 --
Distributions payable 370,130 370,130
Other liabilities 13,971 13,914
---------- ----------
Total liabilities 432,476 432,966
Commitments, contingencies and
subsequent event (Notes 3, 4, 7 and 8)
Partners' capital:
Limited Partners
(400,000 Units outstanding) 12,977,946 13,170,018
General Partners 307,889 371,647
Net unrealized fair value increase
from cost of equity investments 2,435,553 3,099,327
---------- ----------
Total partners' capital 15,721,388 16,640,992
---------- ----------
Total liabilities and
partners' capital $16,153,864 17,073,958
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
-------- --------
<S> <C> <C>
Income:
Notes receivable interest $ 10,284 --
Short-term investment interest 6,132 30,753
------- -------
Total income 16,416 30,753
Costs and expenses:
Management fees 42,685 57,674
Individual General Partners'
compensation 8,669 9,615
Operating expenses
Investment operations 78,758 146,123
Administrative and investor services 137,650 176,116
Professional fees 11,860 12,015
Computer services 28,436 91,932
------- -------
Total operating expenses 256,704 426,186
------- -------
Total costs and expenses 308,058 493,475
------- -------
Net operating loss (291,642) (462,722)
Net realized loss from
sales of equity investments (30,464) (182,171)
Realized gain from venture
capital limited partnership
investments 66,276 --
------- -------
Net realized loss (255,830) (644,893)
Change in net unrealized
fair value of equity
investments (663,774) 980,491
------- -------
Net (loss) income $(919,604) 335,598
======= =======
Net realized loss per Unit $ (0.48) (1.30)
======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1999 1998
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 14,764 32,130
Cash paid to vendors (111,969) (106,780)
Cash paid to related parties (173,835) (473,395)
--------- ---------
Net cash used by operating activities (271,040) (548,045)
--------- ---------
Cash flows from investing activities:
Purchase of equity investments (510,208) (289,999)
Notes receivable issued (33,333) (16,598)
Repayments of notes receivable 198,844 --
Proceeds from sales of equity
investments 68,372 95,096
--------- ---------
Net cash used by
investing activities (276,325) (211,501)
--------- ---------
Cash flows from financing activities:
Distribution to partners -- (3,544,571)
--------- ---------
Net cash used by financing
activities -- (3,544,571)
--------- ---------
Net decrease in cash
and cash equivalents (547,365) (4,304,117)
Cash and cash equivalents at
beginning of year 1,188,918 8,821,077
--------- ---------
Cash and cash equivalents $ 641,553 4,516,960
at March 31 ========= =========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)(continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
----------- -----------
<S> <C> <C>
Reconciliation of net (loss) income to
net cash used by operating activities:
Net (loss) income $ (919,604) 335,598
Adjustments to reconcile net (loss)
income to net cash used by operating
activities:
Net realized loss from sales
of equity investments 30,464 182,171
Realized gain from venture
capital limited partnership
investments (66,276) --
Change in net unrealized fair value
of equity investments 663,774 (980,491)
Changes in:
Due to/from related parties 43,221 (87,596)
Other changes, net (22,619) 2,273
--------- ---------
Net cash used by operating activities $ (271,040) (548,045)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, the Balance Sheets as of
March 31, 1999, and December 31, 1998, and the related Statements of
Operations and Statements of Cash Flows for the three months ended March
31, 1999 and 1998, reflect all adjustments which are necessary for a fair
presentation of the financial position, results of operations and cash
flows for such period. These statements should be read in conjunction with
the Annual Report on Form 10-K for the year ended December 31, 1998. The
following notes to financial statements for activity through March 31,
1999, supplement those included in the Annual Report on Form 10-K.
Allocation of income and loss to Limited and General Partners is based on
cumulative income and loss. Adjustments, if any, are reflected in the
current quarter balances.
2. Financing of Partnership Operations
-----------------------------------
The Managing General Partners expect cash received from the future
liquidation of Partnership investments and future short-term borrowings
will provide the necessary liquidity to fund Partnership operations. The
Partnership may be dependent upon the financial support of the Managing
General Partners to fund operations if future proceeds are not received
timely. The Managing General Partners have committed to support the
Partnership's working capital requirements through short-term advances as
necessary.
3. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the three months ended
March 31, 1999 and 1998, were as follows:
<TABLE>
<CAPTION>
1999 1998
-------- --------
<S> <C> <C>
Management fees $ 42,685 57,674
Individual General Partners' compensation 8,669 9,615
Reimbursable operating expenses 165,702 318,510
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual periodically. There were $14,019 and $40,957 due from related
parties at March 31, 1999 and December 31, 1998 respectively, related to
such expenses.
Amounts payable for management fees were $27,469 and $11,186 at March 31,
1999, and December 31, 1998, respectively. Pursuant to the Partnership
Agreement, quarterly management fees are equal to one quarter of one
percent of the fair value of Partnership assets.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of portfolio
companies. At March 31, 1999, the Partnership had an indirect interest in
Endocare, Inc., Physiometrix, Inc., Thermatrix Inc., and UroGen Corp., non-
transferable options with a total fair market value of $23,644.
<PAGE>
4. Equity Investments
------------------
<TABLE>
A full listing of the Partnership's equity investments at December 31, 1998, is in the 1998 Annual
Report on Form 10-K. Activity from January 1 through March 31, 1999, consisted of:
<CAPTION>
January 1 through March 31, 1999
--------------------------------
Principal
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- ---------- --------- ------- -------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1999 $12,547,986 15,647,313
---------- ----------
Significant changes:
Computer Equipment Systems and Software
- ---------------------------------------
Pilot Network
Services, Inc. Common shares 02/99 4,367 56,689 63,431
Environmental
- -------------
Thermatrix Inc. Common shares 06/96 1,105,847 0 (710,811)
Information Technology
- ----------------------
WorldRes, Inc. Series D
Preferred shares 03/99 27,273 165,002 165,002
WorldRes, Inc. Series B and C
Preferred shares 01/97-12/97 128,645 0 302,315
Medical/Biotechnology
- ---------------------
Biex, Inc. Series F
Preferred shares 03/99 132,743 345,132 345,132
Biex, Inc. Series A, B, C,
D and E Preferred
shares 07/93-08/97 611,006 0 61,098
Endocardial Solutions,
Inc. Common shares 09/97 5,714 (80,710) (58,140)
Endocare, Inc. Common shares 08/96-04/98 46,014 0 94,007
Inhale Therapeutic
Systems, Inc. Common shares 12/95-03/97 28,952 0 (207,382)
Physiometrix, Inc. Common shares 04/96 270,791 0 248,462
Microelectronics
- ----------------
KOR Electronics, Inc. Series E
Preferred
shares 01/94 1,130,390 0 (423,896)
Venture Capital Limited Partnerships
- ------------------------------------
Various Limited Partnership
interests Various $2,318,764 0 (66,276)
---------- ----------
Total significant changes during the three
months ended March 31, 1999 486,113 (187,058)
Other changes, net (3,224) 6,173
---------- ----------
Total equity investments at March 31, 1999 $13,030,875 15,466,428
========== ==========
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 1999, and December 31, 1998, marketable equity securities had
aggregate costs of $3,240,316, and $3,204,508, respectively, and aggregate
market values of $2,656,956 and $2,967,543, respectively. The net
unrealized losses at March 31, 1999, and December 31, 1998, included gross
gains of $345,476 and $819,176, respectively.
Biex, Inc.
- ----------
In March 1999, the Partnership purchased 132,743 Series F Preferred shares
for $345,132. The pricing of this round, in which third parties
participated, indicated a $69,407 increase in the fair value of the
Partnership's investment in the company's preferred shares and warrants.
Endocardial Solutions, Inc.
- ---------------------------
In March 1999, the Partnership sold its entire investment in the company
for proceeds of $50,246 and realized a loss of $30,464.
KOR Electronics, Inc.
- ---------------------
In March 1999, the Partnership recorded a $423,896 decrease in the fair
value of its investment in the company based upon the operating status of
the company.
Women.com Networks
- ------------------
In January 1999, the company announced the formation of a joint venture
with Hearst New Media & Technology, a wholly owned unit of the Hearst
Corporation.
Subsequent to March 31, 1999, the Partnership purchased 8,666 Series E
Preferred shares for $86,660. The pricing of this round, in which third
parties participated, indicated an increase in the fair value of the
Partnership's investment in the company from $460,699 to $1,486,960.
WorldRes, Inc.
- --------------
In March 1999, the Partnership made an additional investment in the company
by purchasing 27,273 Series D Preferred shares for $165,002. The pricing
of this round, in which third parties participated, indicated a $318,165
increase in the fair value of the Partnership's investment in the company's
preferred shares and warrants.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership received stock distributions of Pilot Network Services,
Inc. and Rogue Wave Software, Inc. with fair values totaling $66,276.
These distributions were recorded as realized gains. The Partnership
recorded a $66,276 decrease in the fair value of the underlying investments
of the partnerships as a result of the distributions.
Other Equity Investments
- ------------------------
Other significant changes reflected above relate to market value
fluctuations or the elimination of a discount relating to selling
restrictions for publicly traded portfolio companies. Portions of the
Partnership's Thermatrix, Inc. shares are restricted.
5. Notes Receivable
----------------
Activity from January 1, 1999, through March 31, 1999, consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1999 $202,777
1999 activity:
Notes receivable issued 33,333
Repayments of notes receivable (198,844)
Change in interest receivable (3,589)
-------
Balance at March 31, 1999 $ 33,677
=======
</TABLE>
6. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at March 31, 1999 and December 31, 1998 consisted
of:
<TABLE>
1999 1998
------ ------
<S> <C> <C>
Demand accounts $ 356 30,009
Money-Market accounts 641,197 1,158,909
------- ---------
Total $641,553 1,188,918
======= =========
</TABLE>
At March 31, 1999, the majority of the Partnership's funds were on deposit
at a single financial institution.
7. Distributions
-------------
At March 31, 1999, distributions of $370,130, declared in 1998, were
payable to Limited Partners.
8. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-sheet
risk in the normal course of its business. Generally, these instruments
are commitments for future equity fundings, venture capital limited
partnership investments, equipment financing commitments, or accounts
receivable lines of credit that are outstanding but not currently fully
utilized. As they do not represent current outstanding balances, these
unfunded commitments are properly not recognized in the financial
statements. At March 31, 1999, the Partnership had the following unfunded
commitments:
<TABLE>
<CAPTION>
TYPE
- ----
<S> <C>
Notes receivable $ 87,000
Line of credit guarantees 615,550
Venture capital limited partnership investments 41,150
-------
Total $743,700
=======
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the three months ended March 31, 1999, net cash used by operating
activities totaled $271,040. The Partnership paid management fees of
$26,402 to the Managing General Partners and reimbursed related parties for
operating expenses of $138,764 in 1999. In addition, $8,669 was paid to
the Individual General Partners as compensation for their services. Other
operating expenses of $111,969 were paid and interest income of $14,764 was
received.
During the three months ended March 31, 1999, the Partnership funded equity
investments of $510,208 primarily to portfolio companies in the information
technology and medical/biotechnology industries and issued $33,333 in notes
receivable to a portfolio company in the environmental industry. Proceeds
from the sales of equity investments were $68,372 and repayments of notes
receivable were $198,844. At March 31, 1999, the Partnership's unfunded
commitments totaled $743,700.
Cash and cash equivalents at March 31, 1999, were $641,553. Future
proceeds from investment sales and future short-term borrowings along with
Managing General Partner support are expected to be adequate to fund
Partnership operations through the next twelve months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net loss was $919,604 for the quarter ended March 31, 1999, compared to net
income of $335,598 during the same period in 1998. The change was
primarily due to a decrease of $1,644,265 in the change in net unrealized
fair value of equity investments. This change was partially offset by a
$169,482 decrease in operating expenses and a $151,707 decrease in realized
losses from sales of equity investments.
During the quarter ended March 31, 1999, the decrease in equity investment
fair value of $663,774 was primarily attributable to decreases in portfolio
companies in the environmental and microelectronics industries, partially
offset by increases in portfolio companies in the information technology
and medical/biotechnology industries. During the same period in 1998, the
increase in fair value of equity investments of $980,491 was primarily
attributable to increases in portfolio companies in the environmental
industry, partially offset by decreases in the communications industry.
Total operating expenses were $256,704 and $426,186 for the quarters ended
March 31, 1999 and 1998, respectively. The decrease is primarily
attributable to decreased investment monitoring activity and decreased
computer expenses.
Net realized loss from sales of equity investments was $30,464 for the
quarter ended March 31, 1999, as compared to a net realized loss of
$182,171 for the quarter ended March 31, 1998. The loss in 1999 resulted
from the sale of Endocardial Solutions, Inc. The loss in 1998 primarily
related to the sale of NetChannel, Inc.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
YEAR 2000
- ---------
Widespread use of computer programs that use two digits rather than four to
store, calculate, and display year values in dates may cause computer
systems to malfunction in the year 2000, resulting in significant business
delays and disruptions.
The Partnership's State of Readiness
- ------------------------------------
Computer services are provided to the Partnership by its Managing General
Partner, Technology Funding Inc. ("TFI".) For several years, TFI has
sought to use Year 2000 compliant storage formats and algorithms in its
internally-developed and maintained systems. TFI has also completed
initial evaluations of computer systems, software, and embedded
technologies. Those evaluations confirmed that certain components of its
network server hardware and operating systems, voice mail system, e-mail
system, and accounting software may have Year 2000 compliance issues.
These resources and several less-critical components of the systems
environment were all scheduled as part of normal maintenance and
replacement cycles to be replaced or upgraded as Year 2000 compatible
components became available from vendors during 1998 and 1999. That
program remains on schedule to provide Year 2000 capable systems timely
without significant expenditures or disruption of Partnership operations.
However, the risk remains that TFI may not be able to verify whether Year
2000 compatibility claims by vendors are accurate, or whether changes
undertaken to achieve Year 2000 compatibility will create other undetected
problems in associated systems. Therefore, TFI anticipates that Year 2000
compliance testing and maintenance of these systems will continue as needed
into the first quarter of 2000.
As part of Year 2000 evaluation, TFI has also assembled a database listing
its significant suppliers to assess the extent to which it needs to prepare
for any of those parties' potential failure to remediate their Year 2000
compliance issues. TFI is reviewing public Year 2000 statements of those
suppliers and preparing questionnaires to be sent to mission-critical
vendors whose public statements were not adequate for assessment. TFI will
continue to monitor its significant suppliers as part of its Year 2000
evaluation. However, there can be no guarantee that the systems of other
companies on which TFI relies will be timely converted, or that failure to
convert will not have a material adverse effect on the Partnership and its
operations. TFI is also working with the Partnership's portfolio companies
to determine the extent to which their operations are vulnerable to Year
2000 issues. There can be no guarantee that the systems of portfolio
companies in which the Partnership has invested will be timely converted,
or that failure to convert will not have a material adverse effect on the
Partnership.
The Cost to Address Year 2000 Issues
- ------------------------------------
Expenditures in 1999 to date related to Year 2000 issues were not material
to the Partnership's financial statements. TFI expects that additional
expenditures for Year 2000 compliance will not be material to the
Partnership.
The Risks Associated with Year 2000 Issues
- ------------------------------------------
Any failure by the portfolio companies in which the Partnership has
invested, or by those portfolio companies' key suppliers or customers, to
anticipate and avoid Year 2000 related problems at reasonable cost could
have a material adverse effect on the value of and/or the timing of
realization of value from the Partnership's investments. If Year 2000
compliance issues are not resolved by December 31, 1999, internal system
failures or miscalculations could cause a temporary inability to process
transactions, loss of ability to send or receive e-mail and voice mail
messages, or disruptions in other normal business activities.
Additionally, failure of third parties on whom TFI relies to remediate
their Year 2000 issues timely could result in disruptions in the
Partnership's relationship with its financial institutions, temporary
disruptions in processing transactions, unanticipated costs, and problems
related to the Partnership's daily operations. While TFI continues to
address its internal Year 2000 issues, until TFI receives and evaluates
responses from a significant number of its suppliers, the overall risks
associated with the Year 2000 issue remain difficult to describe and
quantify. There can be no guarantee that the Year 2000 issue will not have
a material adverse effect on the Partnership and its operations.
TFI's Contingency Plan
- ----------------------
As part of its normal efforts to assure business continuation in the event
of natural disasters, systems failures, or other disruptions, TFI has
prepared contingency plans including an extensive Year 2000 contingency
plan. Taken together with TFI's Year 2000 remediation plan, it identifies
potential points of failure, approaches to correcting known Year 2000
problems, dates by which the preferred corrections are anticipated to be
made and tested, and alternative approaches if the corrections are not
completed timely or are later found to be inadequate. Although backup
systems and contingency approaches have been identified for most mission-
critical systems and vendor dependencies, there remain some systems for
which no good alternative exists, and there may be some problems that prove
more intractable than currently anticipated.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended March 31, 1999.
(b) Financial Data Schedule for the three months ended and as of
March 31, 1999 (Exhibit 27).
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TECHNOLOGY FUNDING VENTURE PARTNERS IV,
AN AGGRESSIVE GROWTH FUND, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: May 14, 1999 By: /s/Michael R. Brenner
-------------------------------------------
Michael R. Brenner
Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<PERIOD-TYPE> 3-MOS
<INVESTMENTS-AT-COST> 13,064,552
<INVESTMENTS-AT-VALUE> 15,500,105
<RECEIVABLES> 0
<ASSETS-OTHER> 12,206
<OTHER-ITEMS-ASSETS> 641,553
<TOTAL-ASSETS> 16,153,864
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 432,476
<TOTAL-LIABILITIES> 432,476
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,285,835
<SHARES-COMMON-STOCK> 400,000
<SHARES-COMMON-PRIOR> 400,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,435,553
<NET-ASSETS> 15,721,388
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 16,416
<OTHER-INCOME> 0
<EXPENSES-NET> 308,058
<NET-INVESTMENT-INCOME> (291,642)
<REALIZED-GAINS-CURRENT> 35,812
<APPREC-INCREASE-CURRENT> (663,774)
<NET-CHANGE-FROM-OPS> (919,604)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (919,604)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 42,685
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 308,408
<AVERAGE-NET-ASSETS> 16,181,190
<PER-SHARE-NAV-BEGIN> 33
<PER-SHARE-NII> (1)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 32
<EXPENSE-RATIO> 1.9
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>
A zero value is used since the change in net unrealized fair value is not
allocated to General Partners and Limited Partners as it is not taxable.
</FN>
</TABLE>
