<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. 814-82
TECHNOLOGY FUNDING VENTURE PARTNERS V, AN AGGRESSIVE GROWTH FUND, L.P.
----------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3094910
- ------------------------------- ----------------------------------
(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
Equity investments (cost basis of
$21,127,382 and $21,268,672 at
1999 and 1998, respectively) $41,528,066 37,682,178
Investment sales receivable 1,473,366 --
Cash and cash equivalents 14,375 15,850
Other assets 8,197 4,062
---------- ----------
Total $43,024,004 37,702,090
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 46,307 60,445
Due to related parties 200,862 670,978
Short-term borrowings -- 120,200
---------- ----------
Total liabilities 247,169 851,623
Commitments, contingencies and
subsequent events (Notes 2, 3, 5 and 6)
Partners' capital:
Limited Partners
(400,000 units outstanding) 22,357,229 20,483,914
General Partners 18,922 (46,953)
Net unrealized fair value increase
from cost of equity investments 20,400,684 16,413,506
---------- ----------
Total partners' capital 42,776,835 36,850,467
---------- ----------
Total liabilities and partners'
capital $43,024,004 37,702,090
========== ==========
</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:
Interest income $ 1,250 8,191
--------- ---------
Total income 1,250 8,191
Costs and expenses:
Management fees 72,395 97,499
Individual General Partners'
compensation 7,169 5,197
Operating expenses:
Investment operations 103,810 184,593
Administrative and investor services 147,323 174,150
Professional fees 14,869 12,301
Computer services 30,721 76,006
Interest expense 7,031 --
--------- ---------
Total operating expenses 303,754 447,050
--------- ---------
Total costs and expenses 383,318 549,746
--------- ---------
Net operating loss (382,068) (541,555)
Net realized gain (loss) from
sales of equity investments 2,238,762 (26,379)
Realized gain from venture capital
limited partnership investments 82,496 6,014
--------- ---------
Net realized income (loss) 1,939,190 (561,920)
Change in net unrealized
fair value of equity
investments 3,987,178 (827,112)
--------- ---------
Net income (loss) $5,926,368 (1,389,032)
========= =========
Net realized income (loss) per Unit $ 4.68 (1.39)
========= =========
</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 income received $ 160 11,016
Cash paid to vendors (126,410) (47,931)
Cash paid to related parties (738,266) (541,564)
Interest paid (7,031) --
--------- ---------
Net cash used by
operating activities (871,547) (578,479)
--------- ---------
Cash flows from investing activities:
Proceeds from sales of equity
investments 1,090,338 --
Purchase of equity investments (100,066) (245,000)
Notes receivable issued -- (2,766)
Repayments of convertible notes
receivable -- 57,378
Distributions from venture capital
limited partnership investments -- 4,172
--------- ---------
Net cash provided (used) by
investing activities 990,272 (186,216)
--------- ---------
Cash flows from financing activities:
Repayment of short-term borrowings (120,200) --
--------- ---------
Net cash used by financing activities (120,200) --
Net decrease in cash and
cash equivalents (1,475) (764,695)
Cash and cash equivalents at
beginning of year 15,850 1,839,535
--------- ---------
Cash and cash equivalents
at March 31 $ 14,375 1,074,840
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
--------- ---------
<S> <C> <C>
Reconciliation of net income
(loss) to net cash used by
operating activities:
Net income (loss) $5,926,368 (1,389,032)
Adjustments to reconcile net income
(loss) to net cash used by
operating activities:
Net realized (gain) loss from
sales of equity investments (2,238,762) 26,379
Realized gain from venture
capital limited partnership
investments (82,496) (6,014)
Change in net unrealized fair
value of equity investments (3,987,178) 827,112
Changes in:
Accounts payable and accrued
expenses (14,138) (10,899)
Due to/from related parties (470,116) (30,006)
Other (5,225) 3,981
--------- ---------
Net cash used by operating activities $ (871,547) (578,479)
========= =========
Supplemental schedule of non-cash
investing activity:
Investment sales receivable $1,473,366 --
========= =========
</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 periods. 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. 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 $ 72,395 97,499
Reimbursable operating expenses 188,586 408,862
Individual General Partners' compensation 7,169 5,197
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual cost periodically. There were $193,108 and $670,978 due to related
parties at March 31, 1999, and December 31, 1998, respectively, for such
reimbursable expenses.
Amounts payable for management fees were $7,754 and $0 at March 31, 1999,
and December 31, 1998, respectively.
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
Conversion Technologies International, Inc., Endocare, Inc., and
Physiometrix, Inc., non-transferable options with a total fair market value
of $20,311.
<PAGE>
3. 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 $21,268,672 37,682,178
---------- ----------
Significant changes:
Biomedical
- ----------
Axys Common
Pharmaceuticals, Inc. shares 12/95 37,855 0 (61,779)
Computer Systems and Software
- -----------------------------
Pilot Network Common 03/95-
Services, Inc. shares 02/99 720,421 (262,869) 3,369,541
Information Technology
- ----------------------
WorldRes, Inc. Series D
Preferred
shares 03/99 12,397 75,002 75,002
WorldRes, Inc. Series B and C
Preferred 01/97-
shares 12/97 59,338 0 139,445
Medical
- -------
Biex, Preferred 07/93-
Inc. shares 08/97 611,007 0 61,098
Endocare, Common 08/96-
Inc. shares 04/98 46,014 0 94,008
Megabios Common 09/94-
Corp. shares 07/95 301,274 0 (222,040)
Oxford Common
GlycoSciences Plc shares 08/93 213,546 0 186,853
Physiometrix, Common
Inc. shares 04/96 287,021 0 263,354
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited
Partnership
Interests various $1,204,893 10,000 (82,496)
---------- ---------
Total significant changes during the three
months ended March 31, 1999 (177,867) 3,822,986
Other changes, net 36,577 22,902
---------- ----------
Total equity investments at March 31, 1999 $21,127,382 41,528,066
========== ==========
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 1999, and December 31, 1998, marketable equity securities had
aggregate costs of $5,246,133 and $6,069,452, respectively, and aggregate
market values of $14,001,912 and $3,311,167, respectively. The net
unrealized gain/loss at March 31, 1999 and December 31, 1998 included gross
gains of $10,187,858 and $379,205, respectively.
Biex, Inc.
- ----------
In March 1999, the company completed a round of financing in which the
Partnership did not participate. The pricing of this round, in which third
parties participated, indicated a $63,452 increase in the fair value of the
Partnership's investment in the company's preferred shares and warrants.
Pilot Network Services, Inc.
- ----------------------------
In February 1999, El Dorado Ventures III, L.P. distributed 4,376 common
shares valued at $56,689 to the Partnership. In March 1999, the
Partnership sold 175,000 common shares for proceeds of $2,557,503, of which
$1,473,766 were receivable from the broker at March 31, 1999, and realized
a gain of $2,237,944. After these transactions, the Partnership recorded a
$3,369,541 increase in the fair value of its investment in the company as a
result of an increase in the publicly traded market price of the shares as
well as the removal of a discount for selling restrictions which expired in
February 1999.
Subsequent to March 31, 1999, the Partnership sold an additional 335,000
common shares for proceeds of $6,120,922 and realized a gain of $5,827,797.
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 11,912 Series E
Preferred shares for $119,120. 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 $633,233 to $2,043,840.
WorldRes, Inc.
- --------------
In March 1999, the Partnership made an additional investment in the company
by purchasing 12,397 Series D Preferred shares for $75,002. The pricing of
this round, in which third parties participated, indicated a $148,819
increase in the fair value of the Partnership's investment in the company's
preferred shares and warrants.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership made additional investments totaling $10,000 in venture
capital limited partnerships during the three months ended March 31, 1999.
The Partnership received stock distributions of Pilot Network Services,
Inc., Horizon Organic Holding Corporation, Rogue Wave Software, Inc., and
Informix Software, Inc. with fair values totaling $82,496. These
distributions were recorded as realized gains. The Partnership recorded a
$92,496 decrease in the fair value of the underlying investments of the
partnerships primarily 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 Conversion Technologies International, Inc. and Physiometrix,
Inc. investments are restricted.
4. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at March 31, 1999, and December 31, 1998
consisted of:
<TABLE>
<CAPTION>
1999 1998
------ ------
<S> <C> <C>
Demand accounts $12,599 14,093
Money-market accounts 1,776 1,757
------ ------
Total $14,375 15,850
====== ======
</TABLE>
5. Short-Term Borrowings
---------------------
The Partnership has a borrowing account with a financial institution. At
March 31, 1999, the borrowing capacity of this account, which fluctuates
based on collateral value, was $5,133,000 and there were no outstanding
borrowings. Interest is charged at the prime rate plus one-half percent.
The weighted-average interest rate for the three months ended March 31,
1999 was 8.25% and interest expense was $7,031. The Partnership's
investments in Megabios Corp., CV Therapeutics, Inc., Axys Pharmaceuticals,
Inc., and Pilot Network Services, Inc. are pledged as collateral.
6. 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 $148,000
Equity investments 200,000
Equipment lease guarantees 237,000
Line of credit guarantees 218,900
Venture capital limited partnership investments 75,407
-------
Total $879,307
=======
</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 $871,547. The Partnership paid management fees of
$64,641 to the Managing General Partners and reimbursed related parties for
operating expenses of $666,456. In addition, $7,169 was paid to the
Individual General Partners as compensation for their services. Other
operating expenses of $126,410 and interest expense of $7,031 were paid.
Interest income of $160 was received.
During the three months ended March 31, 1999, the Partnership funded equity
investments of $100,066 primarily to portfolio companies in the information
technology industry. Proceeds from sales of equity investments, primarily
Pilot Network Services, Inc. ("Pilot") common shares, provided cash of
$1,090,338; additional sale proceeds of $1,473,366 were receivable from the
broker at March 31, 1999. Net short-term borrowings of $120,200 were
repaid during the three months ended March 31, 1999. As of March 31, 1999,
the Partnership's unfunded commitments totaled $879,307 as discussed in
Note 6 to the financial statements.
The Partnership has a borrowing account with a financial institution. The
borrowing capacity of this account, which fluctuates based on collateral
value, was $5,133,000 at March 31, 1999. Borrowings through this account
were repaid in the first quarter of 1999 from the proceeds of equity
investment sales. The Partnership's investments in CV Therapeutics, Inc.,
Megabios Corp., Axys Pharmaceuticals, Inc., and Pilot are pledged as
collateral.
Cash and cash equivalents at March 31, 1999, were $14,375. Future interest
income on short-term investments and proceeds from investment sales 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 income was $5,926,368 for the three months ended March 31, 1999, as
compared to net loss of $1,389,032 for the three months ended March 31,
1998. The increase was primarily due to a $4,814,290 increase in the net
unrealized fair value of equity investments, a $2,265,141 increase in net
realized gain from equity investment sales, and a $143,296 decrease in
operating expenses.
During the three months ended March 31, 1999, the increase in fair value of
equity investments of $3,987,178 was primarily due to an increase in
Pilot's publicly traded market price and the removal of a discount for
selling restrictions which expired in February 1999. During the same
period in 1998, the decrease in fair value of equity investments of
$827,112 was primarily due to decreases in portfolio companies in the
medical industry.
For the quarter ended March 31, 1999, net realized gains from equity
investment sales of $2,238,762 primarily related to the sale of 175,000
common shares of Pilot. During the same period in 1998, realized losses of
$26,379, related mainly to the sale of NetChannnel, Inc.
Total operating expenses were $303,754 and $447,050 for the quarters ended
March 31, 1999 and 1998, respectively. The decrease is attributable to
decreased investment monitoring activity in the current quarter and
decreased computer expenses.
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 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 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 V,
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> 21,127,382
<INVESTMENTS-AT-VALUE> 41,528,066
<RECEIVABLES> 1,473,366
<ASSETS-OTHER> 8,197
<OTHER-ITEMS-ASSETS> 14,375
<TOTAL-ASSETS> 43,024,004
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 247,169
<TOTAL-LIABILITIES> 247,169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 22,376,151
<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> 20,400,684
<NET-ASSETS> 42,776,835
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,250
<OTHER-INCOME> 0
<EXPENSES-NET> 383,318
<NET-INVESTMENT-INCOME> (382,068)
<REALIZED-GAINS-CURRENT> 2,321,258
<APPREC-INCREASE-CURRENT> 3,987,178
<NET-CHANGE-FROM-OPS> 5,926,368
<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> 5,926,368
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 72,395
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 383,668
<AVERAGE-NET-ASSETS> 39,813,651
<PER-SHARE-NAV-BEGIN> 51
<PER-SHARE-NII> 5
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 56
<EXPENSE-RATIO> 0.96
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
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>
