<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 June 30, 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. 0-19221
TECHNOLOGY FUNDING SECURED INVESTORS III,
AN INCOME AND GROWTH PARTNERSHIP, L.P.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
CALIFORNIA 94-3081010
- ------------------------------ ---------------------------------
(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 resale 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)
June 30, December 31,
1999 1998
------------- ------------
<S> <C> <C>
ASSETS
Investments:
Notes receivable, net
(cost basis of $6,095,223 and
$6,902,801 in 1999 and 1998,
respectively) $ 3,669,223 4,476,801
Equity investments (cost basis
of $5,733,573 in 1999 and 1998) 3,494,550 3,568,670
---------- ----------
Total investments 7,163,773 8,045,471
Cash and cash equivalents 8,695 775,977
Restricted cash 33,500 33,500
Due from affiliated partnerships 4,500 4,500
Other assets 135,677 121,952
---------- ----------
Total assets $ 7,346,145 8,981,400
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 73,132 68,155
Due to related parties 293,942 1,753,326
Note payable to related party 300,000 --
---------- ----------
Total liabilities 667,074 1,821,481
Commitments, contingencies and
subsequent event
(Notes 3, 7 and 8)
Partners' capital:
Limited Partners
(399,977 Units outstanding) 11,545,171 11,947,832
General Partners (201,077) (197,010)
Net unrealized fair value decrease
from cost:
Secured notes receivable (2,426,000) (2,426,000)
Equity investments (2,239,023) (2,164,903)
---------- ----------
Total partners' capital 6,679,071 7,159,919
---------- ----------
Total liabilities and
partners' capital $ 7,346,145 8,981,400
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
------------------------- -----------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Short-term investment interest $ 693 6,669 4,598 34,426
------- ------- ------- -------
Total income 693 6,669 4,598 34,426
Costs and expenses:
Management fees 34,776 50,943 70,554 102,189
Operating expenses:
Lending operations and investment management 47,084 18,310 97,048 100,030
Administrative and investor services 106,778 75,679 193,738 159,318
Computer services 19,998 1,944 38,997 12,936
Professional fees 37,569 10,779 56,382 25,343
Expenses absorbed by General Partners (39,049) (39,324) (45,393) (210,976)
------- ------- ------- -------
Total operating expenses 172,380 67,388 340,772 86,651
------- ------- ------- -------
Total costs and expenses 207,156 118,331 411,326 188,840
------- ------- ------- -------
Net realized loss (206,463) (111,662) (406,728) (154,414)
Change in net unrealized fair
value of equity investments (74,120) (37,205) (74,120) (55,213)
------- ------- ------- -------
Net loss $(280,583) (148,867) (480,848) (209,627)
======= ======= ======= =======
Net realized loss per Unit $ (0.51) (0.28) (1.01) (0.38)
======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1999 1998
------ ------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 4,598 34,426
Cash paid to vendors (155,006) (112,403)
Cash paid to related parties (1,724,452) (109,408)
--------- ---------
Net cash used by operating activities (1,874,860) (187,385)
--------- ---------
Cash flows from investing activities:
Purchase of equity investments -- (901,487)
Repayments of secured notes receivable 807,578 --
--------- ---------
Net cash provided (used) by investing
activities 807,578 (901,487)
--------- ---------
Cash flows from financing activities:
Proceeds from note payable to
related party 300,000 --
--------- ---------
Net cash provided by financing
activities 300,000 --
--------- ---------
Net decrease in cash and cash
equivalents (767,282) (1,088,872)
Cash and restricted cash at
beginning of year 809,477 2,242,209
--------- ---------
Cash and restricted cash
at June 30 $ 42,195 1,153,337
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1999 1998
------ ------
<S> <C> <C>
Reconciliation of net loss
to net cash used by operating
activities:
Net loss $ (480,848) (209,627)
Adjustments to reconcile net loss
to net cash used by operating
activities:
Change in net unrealized fair value of
equity investments 74,120 55,213
Changes in:
Due to related parties (1,459,384) 38,107
Accounts payable and accrued expenses 4,977 (1,851)
Other (13,725) (69,227)
--------- -------
Net cash used by operating
activities $(1,874,860) (187,385)
========= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partner, the accompanying interim
financial statements reflect all adjustments necessary for a fair
presentation of the financial position, results of operations, and cash
flows for the interim periods presented. These statements should be read
in conjunction with the Annual Report on Form 10-K for the year ended
December 31, 1998. 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 Partner expects that cash received from liquidation of
Partnership investments will provide the necessary liquidity to fund
Partnership operations. The Partnership may be dependent upon the financial
support of the Managing General Partner to fund operations if future
proceeds are not received timely. The Managing General Partner has
committed to this support in the form of short-term cash advances.
3. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the six months ended
June 30, 1999 and 1998, were as follows:
<TABLE>
<CAPTION>
1999 1998
-------- --------
<S> <C> <C>
Management fees $ 70,554 102,189
Reimbursable operating expenses 239,907 256,302
Expenses absorbed by General Partners (45,393) (210,976)
</TABLE>
Certain reimbursable expenses have been allocated and accrued based upon
interim estimates prepared by the Managing General Partner and are adjusted
to actual cost periodically. Amounts due to related parties for such
expenses were $293,942 and $1,753,326 at June 30, 1999 and December 31,
1998, respectively
The Partnership reimburses the Managing General Partner and affiliates for
operating costs incurred in connection with the business of the
Partnership. The Partnership may not reimburse the General Partners for
operational costs that aggregate more than 1% of total Limited Partner
capital contributions per year. For purposes of this limitation, the
Partnership's operating year begins May 1st. This limitation was in effect
as of June 30, 1999 and 1998 and expenses absorbed by the General Partners
totaled $45,393 and $210,976, respectively.
4. Notes Receivable, Net
---------------------
<TABLE>
A complete listing of the Partnership's notes receivable at December 31, 1998, is included in the
1998 Annual Report on Form 10-K. Activity from January 1 through June 30, 1999, consisted of:
January 1 through June 30, 1999
-------------------------------
Investment Cost Fair
Industry/Company Date Position Basis Value
- ---------------- ---------- -------- -------- -------
<S> <C> <C> <C> <C>
Balance at January 1, 1999 $6,902,801 4,476,801
1999 activity:
Computers and Computer Equipment
- --------------------------------
MARCorp 12/89- Secured notes
02/93 receivable, plus
interest (807,578) (807,578)
--------- ---------
Total notes receivable at June 30, 1999 $6,095,223 3,669,223
========= =========
MARCorp
- -------
In 1998, the company entered into an agreement to sell the majority of its assets to the management
of one of its subsidiaries. The Partnership has valued its secured notes receivable investment in
the company at its expected share of the proceeds from this sale. In February 1999, the Partnership
received $807,578 of these proceeds. The fair market value of the remaining proceeds receivable at
June 30, 1999 was $1,884,186 (see Note 7).
During the quarter, the company purchased $3,000,000 in senior secured convertible debentures of
Sutmyn Storage Corporation, a company in the computer industry.
</TABLE>
5. Equity Investments
------------------
<TABLE>
A complete listing of the Partnership's equity investments at December 31, 1998, is included in the
1998 Annual Report on Form 10-K. Activity from January 1 through June 30, 1999 consisted of:
January 1 through June 30, 1999
-------------------------------
Investment Cost Fair
Industry/Company Date Position Basis Value
- ---------------- ---------- -------- -------- -------
<S> <C> <C> <C> <C>
Balance at January 1, 1999 $5,733,573 3,568,670
1999 activity:
Computer Software and Systems
- -----------------------------
Wasatch Education 06/95 2,908,450 Series C
Systems Corporation Preferred shares 0 (69,726)
Other changes, net (4,394)
--------- ---------
Total equity investments at June 30, 1999 $5,733,573 3,494,550
========= =========
Wasatch Education Systems Corporation
- -------------------------------------
In June 1999, the Partnership recorded a $69,726 decrease in the fair value of its investment based
upon the Managing General Partners' assessment of the operating status of the company.
</TABLE>
6. Cash and Cash Equivalents
-------------------------
At June 30, 1999, and December 31, 1998, cash and cash equivalents
consisted of:
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
Demand and brokerage accounts $6,887 320,775
Money-market accounts 1,808 455,202
----- -------
Total $8,695 775,977
===== =======
</TABLE>
7. Note Payable to Related Party
-----------------------------
On June 28, 1999, the Partnership borrowed $300,000 from MARCorp, a
portfolio company of the Partnership, under an unsecured promissory note.
An affiliated partnership owns more than 80% of MARCorp. The note bears
interest at 9% and both principal and interest are payable on June 15,
2000. The terms of the note require that the note be repaid prior to any
distributions to partners (see Note 4).
On August 10, 1999, the Partnership borrowed an additional $275,000 from
MARCorp on similar terms.
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 equipment financing commitments or accounts receivable lines of credit
that are outstanding but not currently fully utilized by a borrowing
company. As they do not represent current outstanding balances, these
unfunded commitments are properly not recognized in the financial
statements. At June 30, 1999, the Partnership had no unfunded commitments.
The Partnership, together with an affiliated partnership, guaranteed a note
payable of a portfolio company. The Partnership's share of the guarantee
is $502,500.
In December 1997, the Partnership, together with an affiliated partnership,
guaranteed equipment financing for a portfolio company by depositing
$50,000 collateral in an escrow account with the lending institution. The
Partnership funded $33,500 of this deposit. If the portfolio company fails
to repay the loan, the Partnership may lose the escrowed funds.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the six months ended June 30, 1999, net cash used by operating
activities totaled $1,874,860. The Partnership paid management fees of
$70,554 to the Managing General Partner and reimbursed related parties for
operating expenses of $1,653,898. Other operating expenses of $155,006
were paid. Interest income of $4,598 was received.
During the six months ended June 30, 1999, the Partnership received
$807,578 in secured notes receivable repayments and borrowed $300,000 from
a portfolio company.
Cash and restricted cash at June 30, 1999 were $42,195. Future
distributions will be dependent upon loan repayments from borrowing
companies, future proceeds from equity investment sales and available cash.
Operating cash reserves, repayments of secured notes receivable, and the
Managing General Partners' support are expected to be sufficient to fund
Partnership operations through the next twelve months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
-----------------------------------------------------------------------
Net losses were $280,583 and $148,867 for the quarters ended June 30, 1999
and 1998, respectively. The increase in net loss was substantially due to
an increase in operating expenses of $104,992 and a $36,915 decrease in net
unrealized fair value of equity investments.
Total operating expenses were $172,380 and $67,388 for the quarters ended
June 30, 1999 and 1998, respectively. As explained in Note 3 to the
financial statements, the General Partners absorbed expenses of $39,049 and
$39,324, respectively, for the quarters ended June 30, 1999 and 1998. Had
the limitation not been in effect, total operating expenses for the second
quarter of 1999 and 1998 would have been $211,429 and $106,712,
respectively. This increase is primarily attributable to increased
investment monitoring activity, professional fees, and computer service
costs.
The $74,120 decrease in the net unrealized fair value of equity investments
in the quarter ended June 30, 1999, primarily related to a company in the
computer systems and software industry. The $37,205 decrease in the net
unrealized fair value of equity investments during the quarter ended June
30, 1998 primarily related to decreases in the microelectronics industry.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
Current six months compared to corresponding six months in the
--------------------------------------------------------------
preceding year
--------------
Net losses totaled $480,848 and $209,627 for the six months ended June 30,
1999 and 1998, respectively. The increased loss was primarily due to a
$254,121 increase in operating expenses and a $29,828 decrease in interest
income, partially offset by a $31,635 decrease in management fees and an
$18,907 decrease in net unrealized fair value of investments.
Total operating expenses were $340,772 and $86,651 for the six months ended
June 30, 1999 and 1998, respectively. As explained in Note 3 to the
financial statements, the General Partners absorbed $45,393 and $210,976,
respectively, for the six months ended June 30, 1999 and 1998. The
decrease in operating expenses absorbed by the General Partners is
attributable to the re-evaluation of expense limitation provisions of the
Partnership agreement which occurred in the fourth quarter of 1998. This
re-evaluation effectively lowered the total amount of operating expenses
subject to the expense limitation. Had the limitation not been in effect,
total operating expenses for 1999 and 1998 would have been $386,165 and
$297,627, respectively. The increase is attributable to increased investor
relations and administrative overhead costs, professional fees and computer
service costs.
Interest income was $4,598 and $34,426 for the six months ended June 30,
1999 and 1998, respectively. The decrease in 1999 was due to the
Partnership's decreased cash and cash equivalents balance.
Total management fees were $70,554 and $102,189 for the six months ended
June 30, 1999 and 1998, respectively. The decrease in 1999 was due to a
decrease in assets under management.
The $74,120 decrease in the net unrealized fair value of equity investments
during the six months ended June 30, 1999, primarily related to a portfolio
company in the computer systems and software industry. The Partnership
recorded a decrease in investment fair value of $55,213 for the six months
ended June 30, 1998, primarily due to decreases in the microelectronics
industry.
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 reviewed public Year 2000 statements of those
suppliers and sent questionnaires to mission-critical vendors whose public
statements were not adequate for assessment. All mission-critical vendors
have responded that they expect to be Year 2000 compliant barring any
unforeseen circumstances. 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 their 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 June 30, 1999.
(b) Financial Data Schedule for the six months ended and as of June 30,
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 SECURED INVESTORS III,
AN INCOME AND GROWTH PARTNERSHIP, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: August 13, 1999 By: /s/Michael R. Brenner
------------------------------------
Michael R. Brenner
Controller
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF JUNE 30, 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> JUN-30-1999
<PERIOD-TYPE> 6-MOS
<INVESTMENTS-AT-COST> 11,828,796
<INVESTMENTS-AT-VALUE> 7,163,773
<RECEIVABLES> 0
<ASSETS-OTHER> 140,177
<OTHER-ITEMS-ASSETS> 42,195
<TOTAL-ASSETS> 7,346,145
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 667,074
<TOTAL-LIABILITIES> 667,074
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,344,094
<SHARES-COMMON-STOCK> 399,977
<SHARES-COMMON-PRIOR> 399,977
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (4,665,023)
<NET-ASSETS> 6,679,071
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,598
<OTHER-INCOME> 0
<EXPENSES-NET> 411,326
<NET-INVESTMENT-INCOME> (406,728)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (74,120)
<NET-CHANGE-FROM-OPS> (480,848)
<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> (480,848)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 70,554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 412,726
<AVERAGE-NET-ASSETS> 6,919,495
<PER-SHARE-NAV-BEGIN> 30
<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> 29
<EXPENSE-RATIO> 5.94
[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>
