SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the Quarterly Period Ended March 31, 2000
Commission file number 33-21281
WESTMED VENTURE PARTNERS 2, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3473015
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(State of organization) (I.R.S. Employer Identification No.)
CIBC Oppenheimer Tower, World Financial Center
New York, New York 10281
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 667-7000
Not applicable
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Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Balance Sheets as of March 31, 2000 (Unaudited) and December 31, 1999
Schedule of Portfolio Investments as of March 31, 2000 (Unaudited)
Statements of Operations for the Three Months Ended March 31, 2000 and 1999
(Unaudited)
Statements of Cash Flows for the Three Months Ended March 31, 2000 and 1999
(Unaudited)
Statement of Changes in Partners' Capital for the Three Months Ended March 31,
2000 (Unaudited)
Notes to Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Item 3. Quantitative and Qualitative Disclosure about Market Risk.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Item 2. Changes in Securities.
Item 3. Defaults upon Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders.
Item 5. Other Information.
Item 6. Exhibits and Reports on Form 8-K.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
WESTMED VENTURE PARTNERS 2, L.P.
BALANCE SHEETS
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
March 31, 2000 December 31,
(Unaudited) 1999
ASSETS
Portfolio investment at fair value (cost of $0 as of March 31, 2000
and December 31, 1999) $ 0 $ 0
Cash and cash equivalents 537,605 4,867,693
Receivable from security sold - 5,743
Accrued interest receivable 963 1,205
Prepaid insurance 15,500 22,289
------------- ---------------
TOTAL ASSETS $ 554,068 $ 4,896,930
============= ===============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Cash distribution payable $ - $ 4,342,118
Accounts payable and accrued expenses 39,502 40,445
Due to Managing General Partner 9,597 2,572
Due to Independent General Partners 2,500 -
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Total liabilities 51,599 4,385,135
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Partners' Capital:
Managing General Partner 5,026 5,119
Limited Partners (38,727 Units) 497,443 506,676
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Total Partners' capital 502,469 511,795
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 554,068 $ 4,896,930
============= ===============
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (Unaudited)
As of March 31, 2000
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Initial
Investment
Company / Position Date Cost Fair Value
La Jolla Pharmaceutical Company
Warrant to purchase 5,015 shares of Common Stock Nov. 1991 $ $
at $5.00 per share, expiring 6/3/00 0 0
--------------- ---------------
Active Portfolio Investment $ 0 $ 0
=============== ===============
Supplemental Information: Liquidated Portfolio Investments (A)
Cost Realized Loss Return
Liquidated Portfolio Investments $ 16,842,427 $ (9,549,586) $ 7,292,841
================= =============== ===============
Combined Combined
Unrealized and Fair Value
Cost Realized Loss and Return
Active and Liquidated Portfolio Investments $ 16,842,427 $ (9,549,586) $ 7,292,841
================= =============== ===============
</TABLE>
(A) Amounts provided for "Supplemental Information: Liquidated Portfolio
Investments" are cumulative from inception through March 31, 2000.
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months Ended March 31,
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<S> <C> <C> <C> <C> <C> <C>
2000 1999
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INVESTMENT INCOME AND EXPENSES
Income:
Interest from short-term investments $ 22,714 $ 34,137
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Total investment income 22,714 34,137
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Expenses:
Management fee 2,525 25,253
Professional fees 14,483 14,774
Insurance expense 6,789 8,278
Mailing and printing 5,589 5,609
Independent General Partners' fees 2,500 2,500
Custodial fees 91 623
Other 63 113
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Total investment expenses 32,040 57,150
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NET INVESTMENT LOSS (9,326) (23,013)
Net realized gain from portfolio investments - 36,509
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NET REALIZED (LOSS) GAIN FROM OPERATIONS (9,326) 13,496
Change in net unrealized depreciation of portfolio investments - (578,490)
---------- --------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ (9,326) $ (564,994)
========== ==============
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
STATEMENTS OF CASH FLOWS (Unaudited)
For the Three Months Ended March 31,
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<S> <C> <C> <C> <C> <C> <C>
2000 1999
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CASH FLOWS USED FOR OPERATING ACTIVITIES
Net investment loss $ (9,326) $ (23,013)
Adjustments to reconcile net investment loss to cash used for operating
activities:
Decrease in accrued interest receivable and other assets 7,031 8,965
Increase (decrease) in payables, net 8,582 (10,602)
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Cash provided from (used for) operating activities 6,287 (24,650)
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CASH FLOWS PROVIDED FROM INVESTING ACTIVITIES
Proceeds from the sale of portfolio investments 5,743 224,311
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Cash provided from investing activities - 224,311
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CASH FLOWS USED FOR FINANCING ACTIVITIES
Cash distribution paid to partners (4,342,118) -
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Cash used for financing activities (4,342,118) -
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(Decrease) increase in cash and cash equivalents (4,330,088) 199,661
Cash and cash equivalents at beginning of period 4,867,693 3,076,472
------------ ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 537,605 $ 3,276,133
============ ===============
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (Unaudited)
For the Three Months Ended March 31, 2000
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Managing
General Limited
Partner Partners Total
Balance as of December 31, 1999 $ 5,119 $ 506,676 $ 511,795
Net decrease in net assets from operations (93) (9,233) (9,326)
----------- -------------- ---------------
Balance as of March 31, 2000 $ 5,026 $ 497,443(A) $ 502,469
=========== ============== ===============
</TABLE>
(A) The net asset value per $1,000 unit of limited partnership interest,
including an assumed allocation of net unrealized depreciation of
investments, is $13.
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization and Purpose
WestMed Venture Partners 2, L.P. (the "Partnership") was formed under Delaware
law in April 1988. The Partnership operates as a business development company
under the Investment Company Act of 1940, as amended. The Partnership is a
closed-end partnership and accordingly its units of limited partnership interest
("Units") are not redeemable by the Partnership. A total of 38,727 Units were
sold to limited partners ("Limited Partners" and together with the Managing
General Partner (as hereinafter defined), the "Partners") at $500 per Unit.
The general partners of the Partnership include two individuals (the
"Independent General Partners") and the managing general partner, WestMed
Venture Management 2, L.P., a Delaware limited partnership (the "Managing
General Partner" and collectively with the Independent General Partners, the
"General Partners"). The general partner of the Managing General Partner is
Medical Venture Holdings, Inc., a Delaware corporation affiliated with CIBC
Oppenheimer Corp. ("Opco"). Opco is the successor corporation to Oppenheimer &
Co., Inc., following the acquisition and subsequent merger of Oppenheimer & Co.,
Inc. and CIBC Wood Gundy Corp. in November 1997. Opco is a subsidiary of
Canadian Imperial Bank of Commerce. The limited partners of the Managing General
Partner are Opco, MVP Holdings, Inc. and BSW, Inc., a Delaware corporation owned
by John A. Balkoski, Philippe L. Sommer and Howard S. Wachtler. Alsacia Venture
Management, Inc. (the "Sub-Manager"), a corporation controlled by Philippe L.
Sommer, serves as the sub-manager of the Partnership pursuant to a
sub-management agreement between the Managing General Partner and the
Sub-Manager. The Sub-Manager has been retained by the Managing General Partner
to assist the Managing General Partner in the performance of certain of its
duties to the Partnership.
The Partnership's objective is to achieve long-term capital appreciation from
its portfolio of venture capital investments, consisting of companies engaged in
the health care industry. The Partnership's originally scheduled termination
date was December 31, 1998, with provision for extension for two additional
two-year periods. The General Partners have elected not to extend the
Partnership's termination date. However, pursuant to the Partnership Agreement
(as hereinafter defined) and Delaware Law, the Managing General Partner will
continue to manage the Partnership through its date of liquidation, which will
occur when it has satisfied all liabilities and obligations to creditors and has
sold, distributed or otherwise disposed of its investments in portfolio
companies.
2. Summary of Significant Accounting Policies
Valuation of Investments - Portfolio investments are valued quarterly by the
Managing General Partner under the supervision of the Independent General
Partners. Publicly-held portfolio securities are valued at the closing public
market price on the valuation date discounted for sales restrictions. Factors
considered in the determination of an appropriate discount include, underwriter
lock-up or Rule 144 trading restrictions, insider status where the Partnership
either has a representative serving on the board of directors of the portfolio
company under consideration or is greater than a 5% shareholder thereof, and
other liquidity factors
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
NOTES TO FINANCIAL STATEMENTS (Unaudited), continued
such as the size of the Partnership's position in a given company compared to
the trading history of the public security. Privately-held portfolio securities
are carried at cost until significant developments affecting the portfolio
company provide a basis for change in valuation. The fair value of private
securities is adjusted (i) to reflect meaningful third-party transactions in the
private market and (ii) to reflect significant progress or slippage in the
development of the company's business such that cost is no longer reflective of
fair value. As a venture capital investment fund, the Partnership's portfolio
investments involve a high degree of business and financial risk that can result
in substantial losses. The Managing General Partner considers such risks in
determining the fair value of the Partnership's portfolio investments.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Investment Transactions - Investment transactions are recorded on the accrual
method. For portfolio investments, transactions are recorded on the date the
Partnership obtains an enforceable right to demand the securities or payment
thereof. Realized gains and losses on investments sold are computed on a
specific identification basis.
Statements of Cash Flows - Cash and cash equivalents include short-term
interest-bearing investments in commercial paper and other money market
investments. The Partnership considers its interest-bearing cash account to be
cash equivalents.
Income Taxes - No provision for income taxes has been made since all income and
losses are allocable to the Partners for inclusion in their respective tax
returns. The Partnership's net assets for financial reporting purposes differ
from its net assets for tax purposes. From inception to March 31, 2000, other
timing differences totaling $3.3 million, primarily relating to original sales
commissions paid and other costs of selling the Units, have been recorded on the
Partnership's financial statements but have not yet been deducted for tax
purposes.
3. Allocations of Partnership Profits and Losses
Pursuant to the Partnership's agreement of limited partnership, as amended (the
"Partnership Agreement"), the Partnership's net income and net realized gains
from all sources are allocated to all Partners, in proportion to their capital
contributions, until all Partners have been allocated an amount (the "Priority
Return") equal to 6% per annum, simple interest, on their total Adjusted
Invested Capital; i.e., original capital contributions reduced by previous
distributions. Thereafter, net income and net realized gains from venture
capital investments in excess of the amount used to cover the Priority Return
are allocated 20% to the Managing General Partner and 80% to all Partners in
proportion to their capital contributions. Any net income from non-venture
capital investments in excess of the amount used to cover the Priority Return is
allocated to all Partners in proportion to their capital contributions. Realized
losses are allocated to all Partners in proportion
<PAGE>
WESTMED VENTURE PARTNERS 2, L.P.
NOTES TO FINANCIAL STATEMENTS (Unaudited), continued
to their capital contributions. However, if realized gains had been previously
allocated in the 80/20 ratio, then losses are allocated in the reverse order in
which profits were allocated. From its inception to March 31, 2000, the
Partnership had a $9.3 million net realized loss from its venture capital
investments, including approximately $240,000 of interest and other income from
portfolio investments.
4. Related Party Transactions
Pursuant to the Partnership Agreement, the Managing General Partner is entitled
to receive a one-time venture capital fee equal to 5% of the gross proceeds from
the sale of Units. Such fee is incurred as portfolio investments are made in the
proportion of the cost of each portfolio investment to the net proceeds from the
sale of Units. Venture capital fees incurred are recorded as a cost of acquiring
the portfolio investment. The Partnership incurred no venture capital fees for
the period ended March 31, 2000. Cumulative venture capital fees incurred from
inception to March 31, 2000 totaled approximately $964,000.
Pursuant to a management agreement between the Partnership and the Managing
General Partner, the Managing General Partner is responsible for the management,
administrative and certain investment advisory services necessary for the
operation of the Partnership. For such services, the Managing General Partner
receives a management fee at the annual rate of 2% of the lesser of the net
assets of the Partnership or the net contributed capital of the Partnership;
i.e., gross capital contributions to the Partnership (net of selling commissions
and organizational expenses) reduced by capital distributed. Such fee is
determined and payable quarterly. The compensation of the Sub-Manager is paid
directly by the Managing General Partner.
The Managing General Partner also provides certain shareholder services and
database management support for the Limited Partners of the Partnership. For
such services, the Managing General Partner charges the Partnership $4,500 per
quarter. This amount is paid to the Managing General Partner in addition to the
regular management fee discussed above.
For services rendered to the Partnership, each of the two Independent General
Partners receives a $5,000 annual fee and reimbursement for all out-of-pocket
expenses relating to attendance at meetings of the General Partners.
5. Subsequent Event
In May 2000, the Partnership received a final cash settlement payment totaling
$916,666 in connection with additional claims relating to an earlier settlement
agreement involving Sennes Drug Innovations, Inc., certain shareholders of
Sennes, including the Partnership, and certain other parties.
6 Interim Financial Statements
In the opinion of the Managing General Partner, the unaudited financial
statements as of March 31, 2000, and for the three-month period then ended,
reflect all adjustments necessary for the fair presentation of the results of
the interim period.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
------------------------------------------------------------------
Liquidity and Capital Resources
On January 28, 2000, the Partnership paid a cash distribution to Partners
totaling $4,342,118. Limited Partners of record on December 31, 1999 received
$4,298,697, or $111 per Unit, and the Managing General Partner received $43,421.
Cumulative cash distributions paid to Partners from inception of the Partnership
through March 31, 2000 total $7,631,835, including $7,555,517 to the Limited
Partners, or approximately $195 per Unit, and $76,318 to the Managing General
Partner.
As of March 31, 2000, the Partnership held $537,605 in an interest-bearing cash
account. For the three months ended March 31, 2000, the Partnership earned
interest of $22,714 on its cash balances. Interest earned in future periods is
subject to fluctuations in short-term interest rates and changes in cash
balances held.
As a result of the portfolio liquidations completed during 1999, the
Partnership's only remaining portfolio security is a warrant to purchase 5,015
common shares of La Jolla Pharmaceutical Company, a public company, at $5.00 per
share, expiring on June 3, 2000. The warrant, acquired in a private transaction,
is not publicly traded, has no cost basis and was carried at a fair value of $0
as of March 31, 2000.
As previously disclosed, in September 1998, the Partnership liquidated its
investment in Sennes Drug Innovations, Inc. as part of a litigation settlement
involving Sennes and certain shareholders, including the Partnership, against
Baylor College of Medicine. As a result of certain claims pursued by parties to
the settlement agreement, the Partnership received an additional and final cash
settlement payment totaling $916,666 in May 2000.
The General Partners have elected not to extend the Partnership's originally
scheduled termination date of December 31, 1998. The Managing General Partner is
working toward the ultimate termination of the Partnership and will continue to
manage the Partnership through the date of termination, which will occur when
all liabilities and obligations to creditors have been satisfied and all
investments in portfolio companies have been sold, distributed or otherwise
disposed.
Funds needed to cover the Partnership's future operating expenses will be
obtained primarily from existing cash reserves and interest from short-term
investments.
Results of Operations
For the three months ended March 31, 2000, the Partnership had a net realized
loss from operations of $9,326. For the three months ended March 31, 1999, the
Partnership had a net realized gain from operations of $13,496. Net realized
gain or loss from operations is comprised of (i) net realized gain or loss from
portfolio investments and (ii) net investment income or loss (interest and
dividend income less operating expenses).
Realized Gains and Losses from Portfolio Investments - The Partnership had no
realized gains or losses from its portfolio investments during the three months
ended March 31, 2000. For three months ended March 31, 1999, the Partnership had
a $36,509 net realized gain from the sale of 10,000 common shares of KeraVision,
Inc. in the public market for net proceeds of $113,668.
Investment Income and Expenses - For the three months ended March 31, 2000 and
1999, the Partnership had a net investment loss of $9,326 and $23,013,
respectively. The $13,687 favorable change in net investment loss for the 2000
period compared to the same period in 1999, resulted from a $25,110 decline in
operating expenses offset by an $11,423 decrease in interest income. The
decrease in interest income, resulted from the lower cash and cash equivalents
balances held during the 2000 period compared to the same period in 1999. Cash
balances were reduced as a result of the $4.3 million cash distribution paid to
Partners in January 2000, as discussed above. The decrease in operating expenses
primarily resulted from a $22,728 decrease in the management fee, as discussed
below.
Pursuant to a management agreement between the Partnership and the Managing
General Partner, the Managing General Partner is responsible for the management,
administrative and certain investment advisory services necessary for the
operation of the Partnership. For such services, the Managing General Partner
receives a management fee at the annual rate of 2% of the lesser of the net
assets of the Partnership or the net contributed capital of the Partnership;
i.e., gross capital contributions to the Partnership, net of selling commissions
and organizational expenses, reduced by capital distributed. Such fee is
determined and paid quarterly. For the three months ended March 31, 2000 and
1999, the management fee was $2,525 and $25,253, respectively. The decline in
the management fee for the 2000 period compared to the 1999 period reflects the
reduced net asset value of the Partnership, resulting from the continued
liquidation of the Partnership's portfolio investments and subsequent cash
distribution to Partners.
<PAGE>
Changes in Unrealized Appreciation or Depreciation of Portfolio Investments - As
discussed above, the Partnership' only remaining portfolio investment had a $0
cost and fair value as of March 31, 2000. As a result, the Partnership had no
unrealized appreciation as of March 31, 2000 and had no change in net unrealized
appreciation for the three months ended March 31, 2000.
For the three months ended March 31, 1999, the Partnership had a $578,490
unfavorable change in net unrealized depreciation of investments. During the
quarter, the Partnership reduced the fair value of its portfolio investments by
$512,524 due to a net downward revaluation of its publicly held securities as of
the end of the quarter. Additionally, during the quarter, $65,966 was
transferred from unrealized gain to realized gain in connection with the sale of
10,000 shares of KeraVision, as discussed above.
Net Assets - Changes to net assets resulting from operations is comprised of (i)
net realized gains and losses from operations and (ii) changes to net unrealized
appreciation or depreciation of portfolio investments.
As of March 31, 2000, the Partnership's net assets were $502,469, reflecting a
decrease of $9,326 from net assets of $511,795 as of December 31, 1999. This
change resulted from the decrease in net assets resulting from operations,
comprised of the $9,326 net investment loss for the three-month period ended
March 31, 2000.
As of March 31, 1999, the Partnership's net assets were $5,024,905, reflecting a
decrease of $564,994 from net assets of $5,589,899 as of December 31, 1998. This
change represents the decrease in net assets resulting from operations for the
three-month period, comprised of the $578,490 unfavorable change in net
unrealized depreciation of investments partially offset by the $13,496 net
realized gain from operations for the three-month period March 31, 1999.
The net asset value of the Partnership per $500 Unit, including an allocation of
net unrealized depreciation of investments, was $13 as of March 31, 2000 and
December 31, 1999. Such per Unit amounts are based on average allocations to all
Limited Partners and do not reflect specific Limited Partner allocations, which
are determined by the original closing date associated with the Units held by
each Limited Partner.
Item 3. Quantitative and Qualitative Disclosure about Market Risk
The Partnership is subject to market risk arising from changes in the value of
its portfolio investments and interest-bearing cash equivalents, including
short-term securities, which may result from fluctuations in interest rates and
equity prices. The Partnership has calculated its market risk related to its
holdings of these investments based on changes in interest rates and equity
prices utilizing a sensitivity analysis. The sensitivity analysis estimates the
hypothetical change in fair values, cash flows and earnings based on an assumed
10% change (increase or decrease) in interest rates and equity prices. To
perform the sensitivity analysis, the assumed 10% change is applied to market
rates and prices on investments held by the Partnership as of the end of the
accounting period.
Market risk relating to the Partnership's remaining portfolio investment held as
of March 31, 2000 is considered to be immaterial.
As of March 31, 2000, the Partnership had no short-term investments.
Market risk relating to the Partnership's interest-bearing cash equivalents held
as of March 31, 2000 is also considered to be immaterial.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
-----------------
Not applicable.
Item 2. Changes in Securities.
---------------------
Not applicable.
Item 3. Defaults Upon Senior Securities.
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
---------------------------------------------------
No matter was submitted to a vote of security holders during the period covered
by this report.
Item 5. Other Information.
-----------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K.
--------------------------------
(a) Exhibits
(27) Financial Data Schedule.
(b) No reports on Form 8-K have been filed during the quarter for
which this report is filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WESTMED VENTURE PARTNERS 2, L.P.
By: WestMed Venture Management 2, L.P.
The Managing General Partner
By: MEDICAL VENTURE HOLDINGS, INC.
General Partner
By: /s/ Gerald A. Rothstein
Gerald A. Rothstein
President and Principal Executive Officer
By: /s/ Ann Oliveri Fusco
Ann Oliveri Fusco
Vice President and Principal Financial
and Accounting Officer
Date: May 15, 2000
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WESTMED
VENTURE PARTNERS 2, L.P.'S QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED
MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS </LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 963
<ASSETS-OTHER> 15,500
<OTHER-ITEMS-ASSETS> 537,605
<TOTAL-ASSETS> 554,068
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 51,599
<TOTAL-LIABILITIES> 51,599
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 38,727
<SHARES-COMMON-PRIOR> 38,727
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 554,068
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 22,714
<OTHER-INCOME> 0
<EXPENSES-NET> 32,040
<NET-INVESTMENT-INCOME> (9,326)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> (9,326)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NUMBER-OF-SHARES-SOLD> 0
<NET-CHANGE-IN-ASSETS> (9,326)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 507,132
<PER-SHARE-NAV-BEGIN> 13.08
<PER-SHARE-NII> (0.24)
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.84
<EXPENSE-RATIO> 0
</TABLE>
