<PAGE> 1
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 quarterly period ended September 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to _________________
Commission File Number: 038593
RENAISSANCE CAPITAL PARTNERS II, LTD.
_____________________________________________________________________________
(Exact name of registrant as specified in its charter)
Texas 75-2407159
_____________________________________________________________________________
(State or other jurisdiction (I.R.S. Employer I.D. No.)
of incorporation or organization)
8080 North Central Expressway, Dallas, Texas 75206-1857
_____________________________________________________________________________
(Address of principal executive offices) (Zip Code)
214/891-8294
_____________________________________________________________________________
(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
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
--------------------
RENAISSANCE CAPITAL PARTNERS II, LTD.
STATEMENT OF ASSETS, LIABILITIES,
AND PARTNERS' EQUITY
(Unaudited)
ASSETS
December 31, September 30,
1995 1996
Cash and cash equivalents $ 467,916 $ 868,137
Investments at market value,
cost of $28,968,505 and $28,492,357 28,598,520 25,895,444
Accoints receivable - 1,719,434
Other assets 130,790 86,366
---------- ----------
$29,892,591 $28,881,608
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable - related parties $ 219,489 $ 199,661
Distribution payable to limited partners 138 -
---------- ----------
Total liabilities 219,627 199,661
---------- ----------
Partners' equity (deficit):
General partner (26,009) (35,920)
Limited partners (43,434.003 units) 29,698,973 28,717,867
Total partners' equity 29,672,964 28,681,947
---------- ----------
$29,892,591 $28,881,608
========== ==========
See accompanying notes to financial statements.
<PAGE> 3
RENAISSANCE CAPITAL PARTNERS, II, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
1995 1996 1995 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Income:
Interest $ 168,557 $ 581,195 $ 970,032 $ 945,930
Dividends 14,456 4,447 142,433 13,144
Other income 6,020 6,000 18,020 21,607
--------- --------- --------- ---------
Total income 189,033 591,642 1,130,485 980,681
--------- --------- --------- ---------
Expenses:
General and administrative 29,389 87,643 263,377 285,887
Management fees 173,274 144,130 413,977 422,877
--------- --------- --------- ---------
202,663 231,773 677,354 708,764
--------- --------- --------- ---------
Investment income (loss) net (13,630) 359,869 453,131 271,917
Net realized and unrealized gain (loss)
on investments 1,527,250 (630,968) 1,526,624 (1,262,934)
--------- --------- --------- ---------
Net increase (decrease) in assets from
operations $1,513,620 $ (271,099) $ 1,979,755 $ (991,017)
========= ========= ========= ==========
Income (loss) per limited partnership
unit $ 34.50 $ (6.18) $ 45.12 $ (22.59)
========= ========= ========= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
RENAISSANCE CAPITAL PARTNERS II, LTD.
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
Nine Months Ended September 30, 1996
(Unaudited)
General Limited
Partner Partners Total
Balance at December 31, 1995 $ (26,009) $29,698,973 $29,672,964
Net loss (9,911) (981,106) (991,017)
-------- ---------- ----------
Balance at September 30, 1996 $ (35,920) $28,717,867 $28,681,947
======== ========== ==========
See accompanying notes to financial statements.
<PAGE> 5
RENAISSANCE CAPITAL PARTNERS II, LTD.
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
1995 1996 1995 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $1,513,620 $ (271,099) $1,979,755 $ (991,017)
--------- --------- --------- ---------
Adjustments to reconcile net income to net
cash flows provided by operating activities:
Net realized and unrealized
(gain) loss on investments (1,527,250) 630,968 (1,526,624) 1,262,934
(Increase) decrease in accounts receivable 133,763 (1,328,295) (154,832) (1,291,872)
(Decrease) increase in accounts payable 71,455 31,025 (154,889) (19,966)
--------- --------- --------- ---------
Total adjustments (1,322,032) 666,302 (1,836,345) (48,904)
--------- --------- --------- ---------
Net cash provided by operating activities 191,588 (937,401) 143,410 (1,039,921)
--------- --------- --------- ---------
Cash flows from investing activities:
Proceeds from sale of investments - 1,778,994 - 2,430,535
Purchase of investments (200,000) (705,460) (1,142,516) (990,393)
--------- --------- --------- ---------
Net cash used by investing activities (200,000) 1,073,534 (1,142,516) 1,440,142
--------- --------- --------- ---------
Cash flows from financing activities:
Limited partner withdrawal - - (11,667) -
Cash distributions to limited partners (200,000) - (700,000) -
Net cash provided (used) by financing activities (200,000) - (711,667) -
Net increase (decrease) in cash (208,412) 136,133 (1,710,773) 400,221
Cash and cash equivalents at the beginning
of the period 1,371,260 732,004 2,873,621 467,916
--------- --------- --------- ---------
Cash and cash equivalents at the end
of the period $1,162,848 $ 868,137 $1,162,848 $ 868,137
========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
RENAISSANCE CAPITAL PARTNERS II, LTD.
Notes to Financial Statements
September 30, 1996
(Unaudited)
1. Organization and Business Purpose
---------------------------------
Renaissance Capital Partners II, Ltd. (the "Partnership"), a Texas
limited partnership, was formed on January 14, 1991. The Partnership
Agreement required minimum aggregate capital contributions by limited
partners of not less than $2,500,000 and allowed for maximum limited
partnership contributions of $50,000,000. The final closing occurred on June
30, 1993 with total subscriptions for limited partnership interests of
$42,873,900. The Partnership seeks to achieve current income and capital
appreciation principally by making direct investments primarily in private
placement convertible debt securities of small to medium size public
companies.
The Partnership elected to be treated as a business development
company under the Investment Company Act of 1940, as amended. The
Partnership will terminate upon liquidation of all of its investments, but no
later than eight years from the final closing of the sale of units, subject
to the right of the Independent General Partners to extend the term for up to
two additional one-year periods if they determine that such extension is in
the best interest of the Partnership.
2. Summary of Significant Accounting Policies
------------------------------------------
A. Cash and Cash Equivalents - for purposes of the statement of cash
flows, cash and cash equivalents include cash in checking and savings
accounts and all instruments on hand with original maturities of three months
or less. The Partnership paid no interest for the period ended September 30,
1996.
B. Federal Income Taxes - no provision has been made for federal
income taxes as any liability for such taxes is that of the partners rather
than the Partnership.
C. Income Per Limited Partnership Unit - income per limited
partnership unit is based on the weighted average of the limited partnership
units outstanding during the period and net income allocated to the limited
partners.
D. Organization expenses - all organizational expenses will be paid
by the Managing General Partner and the Partnership will not include those
amounts on its financial statements - see Note 4.
<PAGE> 7
E. Management estimates - the financial statements have been
prepared in conformity with generally accepted accounting principles. The
preparation of the accompanying financial statements requires estimates and
assumptions made by management of the Partnership that affect the reported
amounts of assets and liabilities as of the date of the statements of assets,
liabilities and partners' equity and income and expenses for the period.
Actual results could differ significantly from those estimates.
F. Interest income - interest income is accrued on all debt
securities owned by the partnership on a quarterly basis. When it is
determined that the interest accrued will not be collected, the income for
that quarter is reduced to reflect the net interest earned during the period.
Interest accrued was $383,667 and the amount determined to be uncollectible
and charged against the income was $307,476 for the three months ended
September 30, 1996. Interest previously determined to be uncollectible in
the amount of $505,004 from CCI Coded Communications, Inc. was exchanged for
an equity position in a restructuring of the Coded Investment.
<PAGE> 8
RENAISSANCE CAPITAL PARTNERS II, LTD.
Notes to Financial Statements
September 30, 1996
(Unaudited)
3. Basis of Presentation
---------------------
The accompanying financial statements have been prepared without
audit, in accordance with the rules and regulations of the Securities and
Exchange Commission and do not include all disclosures normally required by
generally accepted accounting principles or those normally made in annual
reports on Form 10-K. All material adjustments, consisting only of those of
a normal recurring nature, which, in the opinion of management, were
necessary for a fair presentation of the results for the interim periods have
been made.
4. Management
----------
The Partnership has one general partner, Renaissance Capital Group,
Inc., a Texas Corporation (the "Managing General Partner"), and two
independent, individual general partners (the "Independent General
Partners"). The Independent General Partners receive a quarterly fee as
defined in the Partnership Agreement and reimbursement for certain out-of-
pocket expenses relating to performance of duties as Independent General
Partners.
The Partnership has entered into a management agreement with the
Managing General Partner. Pursuant to such agreement, the Managing General
Partner performs certain services, including certain management and
administrative services necessary for the operation of the Partnership. The
Managing General Partner is entitled to receive a management fee equal to
2.0% of the Partnership's net assets (.5% quarterly), payable in arrears. On
April 21, 1994, at the Annual Meeting of Limited Partners, a proposal to
amend the Advisory Agreement was ratified by the Limited Partners. The
agreement now dictates that to the extent any portion of such fee is based on
an increase in net assets value attributable to non-realized appreciation of
securities or other assets that exceed capital contributions, such portion of
the fee shall be deferred and not earned or payable until such time as
appreciation or any portion thereof is in fact realized and then such
deferred fees shall be earned and paid in proportion to the gains in fact
realized. Fees paid to the Managing General Partner during the three months
ended September 30, 1996, were $144,130.
Renaissance is reimbursed by the Partnership for administrative expenses
paid by Renaissance on behalf of the Partnership. For the three months ended
September 30, 1996 the Partnership incurred $49,451 and reimbursed
Renaissance $25,335 which was applied to the total account.
<PAGE> 9
In addition, the Managing General Partner is entitled to an
incentive fee equal to 20% of the amount of distributions in excess of
distributions representing returns of capital, subject to payment of the
"Priority Return" of the limited partners as defined. The Managing General
Partner will also receive compensation for providing certain administrative
services to the Partnership on terms determined by the Independent General
Partners to be no less favorable to the Partnership than those obtainable
from competent unaffiliated parties.
5. Related Party Transactions
--------------------------
Pursuant to the Partnership Agreement, an initial partnership
contribution of $10,000 was made by the Initial Limited Partner. Upon
admission of additional limited partners at the closings, the Initial Limited
Partner withdrew from the Partnership.
At September 30, 1996, the Partnership owed the two Independent
General Partners $8,214 each for the third quarter Independent General
Partner fee as defined in the Partnership Agreement.
<PAGE> 10
RENAISSANCE CAPITAL PARTNERS II, LTD.
Notes to Financial Statements
September 30, 1996
(Unaudited)
6. Investments
-----------
Investments of the Partnership are carried in the statements of
assets, liabilities and partners' equity at quoted market or fair value, as
determined in good faith by the Managing General Partner and approved by the
Independent General Partners.
For securities that are publicly traded and for which quotations
are available, the Partnership will value the investments based on the
closing sale as of the last day of the fiscal quarter, or in the event of an
interim valuation, as of the date of the valuation. If no sale is reported
on such date, the securities will be valued at the average of the closing bid
and asked prices.
Debt securities will generally be valued at their face value.
However, if the debt is impaired, an appropriate valuation reserve will be
established or the investment discounted to estimated realizable value.
Conversely, if the underlying stock has appreciated in value and the
conversion feature justifies a premium value, such premium will of necessity
be recognized.
The Managing General Partner, subject to the approval and
supervision of the Independent General Partners, will be responsible for
determining fair value.
INVESTMENT VALUATION SUMMARY
<TABLE>
<CAPTION>
CONVERSION FAIR
COST OR FACE VALUE VALUE
<S> <C> <C> <C>
AmeriShop, Inc.
12.50% Convertible Debenture, Conversion price $.56, maturity 7/1/99 $ 2,000,000 $ 2,000,000 $ 2,000,000
Promissory Notes 1,628,448 1,628,448 1,128,448
Biodynamics International, Inc.
Preferred stock 4,164,826 5,512,270 5,131,534
Promissory Note 374,064 492,085 462,380
CCI Coded Communications, Inc.
12% Convertible Subordinated Debenture, Conversion price $1.50, maturity 10/1/99 4,800,000 4,800,000 4,800,000
Promissory Notes 311,060 895,191 805,624
Preferred Stock 444,500 723,450 681,045
Common Stock 100,000 106,000 99,640
</TABLE>
<PAGE> 11
INTESTMENT VALUATION SUMMARY
<TABLE>
<CAPTION>
CONVERSION FAIR
COST OR FACE VALUE VALUE
<S> <C> <C> <C>
Consolidated Health Care Associates, Inc.
Preferred Stock 1,195,984 852,401 801,257
Common Stock 2,500,000 2,031,250 1,859,375
Series B Preferred Stock 500,000 812,500 763,750
Promissory Note 150,000 150,000 150,000
Industrial Holdings, Inc.
12% Convertible Debentures, Conversion price $3.26, maturity 10/1/99 1,060,000 3,210,890 3,178,781
Warrants -0- 493,750 288,813
Prism Group, Inc.
12% Convertible Debentures, Conversion price $.50, maturity 1/1/00 1,236,975 38,655 38,655
Preferred Stock 1,250,000 39,063 11,719
Common Stock 1,250,000 39,063 11,719
Scientific Software-Intercomp, Inc.
Promissory Note 1,500,000 1,500,000 1,500,000
Common Stock 250,000 264,579 198,704
Tricom Corporation
12% Convertible Debenture, Conversion price $.50, maturity 11/1/99 1,500,000 1,500,000 1,500,000
Promissory Note 484,000 484,000 484,000
US Fax
Common Stock 1,625,000 4,656,713 -0-
Promissory Note 100,000 100,000 -0-
Protech, Inc.
Promissory Notes 67,500 67,500 -0-
$28,492,357 $32,397,808 $25,895,444
========== ========== ==========
</TABLE>
The fair value of debt securities convertible into common stock is the sum of
(a) the value of such securities without regard to the conversion feature,
and (b) the value, if any, of the conversion feature. The fair value of debt
securities without regard to conversion features is determined on the basis
of the terms of the debt security, the interest yield and the financial
condition of the issuer. The fair value of the conversion features of a
security, if any, are based on fair values as of this date less an allowance,
as appropriate, for costs of registration, if any, and selling expenses.
Publicly traded securities, or securities that are convertible into publicly
traded securities, are valued at the last sale price, or at the average
closing bid and asked price, as of the valuation date. While these
valuations are believed to represent fair value, these values do not
<PAGE> 12
necessarily reflect amounts which may be ultimately realized upon disposition
of such securities.
The Partnership realized a gain of $963,994 on the sale of 250,000 shares of
common stock of Industrial Holdings, Inc. during the quarter ended September
30, 1996.
The Partnership's investment in CCI Coded Communications, Inc. was
restructured during the quarter ended September 30, 1996. The Partnership
received a new convertible debenture, a convertible promissory note,
preferred stock, common stock, and cash of $244,440 in the transaction.
The Partnership made a follow on investment of $30,000 in the quarter ended
September 30, 1996 with Consolidated Health Care Associates, Inc.
7. Subsequent Events
-----------------
Subsequent to the end of the quarter, the Partnership advanced $100,000 to
Amerishop, Inc. This indebtedness is evidenced by a 10% promissory note due
October 5, 1997.
The Partnership foreclosed on the assets of Prism Group, Inc. on October 10,
1996 and is currently in the process of selling the remaining assets. It is
anticipated that recovery will be nominal.
<PAGE> 13
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
(1) Material Changes in Financial Condition
Discuss material changes from end of preceding fiscal year to date of
most recent interim balance sheet provided. If necessary for an
understanding discuss seasonal fluctuations.
For the past 9 months, the Partnership recorded a decrease of $991,017
from operations in the aggregate value of its assets and a corresponding
decrease in Total Partner s Equity. This was due to a decrease in
investment valuations reflecting a decrease in market values for the Common
Stocks of certain of its Portfolio Companies, principally the values of Prism
Group, Inc., Consolidated Health Care Associates, Biodynamics International,
Inc., and Scientific Software, which were offset by the increase in market
value of CCI Coded Communications, Inc..
The following portfolio transactions are noted for the quarter:
AMERISHOP, INC. Subsequent to the end of the quarter, on October 4,
1996, the Partnership advanced $100,000 to AmeriShop, Inc.. This
indebtedness is evidenced by a 10% Promissory Note due October 5, 1997.
CCI CODED COMMUNICATIONS, INC. On September 27, 1996, final
documentation was executed to complete the May agreement with Grupo
Information, Satellites and Advertising S.A. de C.V. ("ISA"), the Bridge
Lenders, Renaissance Capital Partners II, Ltd. and Coded. Pursuant to the
terms and conditions, ISA received approximately 49,000,000 shares of Coded
Communications, Inc. common stock, representing approximately a 67% ownership
in Coded. In return Coded received (i) $400,000 in cash; (ii) a guarantee
that ISA will place not less than $10 million in orders for Coded's mobile
data communication systems and products over an 18 month period, secured by
50% of ISA's shares in Coded; and (iii) a working capital loan from ISA to
Coded for $1 million that was converted into common stock at a price of $0.25
per share.
As of September 27, 1996, holders of Coded's Senior Secured $1,800,000
Bridge Loan, which included the Partnership, delivered all debentures, notes
and derivative shares held in Coded and in return received; 1) $400,000 in
cash, 2) $600,000 6% Promissory Note, interest payable quarterly. The
Promissory Note is due in full the earlier of September 27, 1997, or on the
sale of DeCom Systems. The Note is convertible into common shares at a price
of $0.25 per share. The conversion price is protected by limited anti-
dilution provisions and the Note is secured subject to subordination of up to
$5 million in working capital loans, if such are obtained by Coded, and 3)
8,000 shares of Series A Cumulative Convertible Preferred Stock with a face
value of $800,000. The stock pays a dividend of 8%, 50% in cash and 50% in
common stock of Coded. The Series A Cumulative Preferred Stock has a
liquidation preference of $800,000 and is convertible into 2,400,000 shares
of Coded common stock.
<PAGE> 14
The Partnership had a 55.55% interest in the Bridge Loan and accordingly
was to receive: $222,200 of cash; $333,300 of 6% Promissory Notes, and 4,445
shares of Series A Convertible Preferred Stock. The Partnership
simultaneously agreed to sell $22,240 of its 6% Promissory Notes to another
Bridge Loan holder and, therefore, its amount of cash increased and the
balance due on the notes decreased.
As of September 27, 1996, the Partnership exchanged it $4,000,000, 12%
Convertible Debenture and $800,000 of accrued interest for a $4,800,000 6%
Convertible Debenture, with interest payable semi-annually, 50% in cash and
50% in common stock of Coded. The Debenture is convertible into a new Series
B Cumulative Preferred Stock at any time. The Series B Preferred Stock has a
liquidation preference and pays a 6% dividend, 50% in cash and 50% in common
stock. The Series B Preferred Stock is convertible into 7,344,000 shares of
Common stock.
In addition, the Partnership received 200,000 shares of common stock as
interest from the date of the agreement to September 27, 1996.
CONSOLIDATED HEALTH CARE ASSOCIATES, INC. The Partnership made a
follow-on investment of $30,000 in the quarter ended September 30, 1996,
under a multiple advance 10% Promissory Note. Total advances under the Note
by the Partnership as of September 30, 1996, were $150,000. The Independent
General Partners have approved, but the Partnership has not yet advanced an
additional $70,000 under the Note.
INDUSTRIAL HOLDINGS, INC. In September 1996, the Partnership converted
$815,000 of its 12% Convertible Debentures into 250,000 shares of the
Company's common stock and sold the stock in block sales which generated a
capital gain of $963,994. As reported earlier, the Company retired $625,000
of the Debentures in March 1996, for cash, bringing the total value of
converted and retired Debentures for 1996 to $1,440,000.
PRISM GROUP, INC. Prism Group's manufacturing subsidiary, Prism
Software Production, L.L.C. (PSP) sold some of its operating assets to PAC
Services, Inc. on July 30, 1996, and on August 29, 1996, the balance of the
assets of PSP were auctioned and the Company placed in Bankruptcy. On
October 10, 1996, the Partnership foreclosed on the assets of Prism Direct
and Prism Group, and is currently in the process of selling the remaining
assets. All officers have resigned from Prism Group as well as all but one
Board member. It is anticipated that the recovery will be nominal.
(2) Material Changes in Operations
Discuss material changes with respect to the most recent year-to-date
period and corresponding period for prior year. If most recent quarter
included also cover changes for quarterly period.
The Partnership currently is not actively considering additional
Portfolio Investments. Therefore, no significant further amount of income
from closing fees and commitment fees is anticipated.
<PAGE> 15
During the past twelve months, interest income has declined substantially
as the result of not accruing certain past due payments from portfolio
companies because the likelihood of receiving such payments appears to be in
question. In addition, income has declined as a result of payment defaults
and as the Partnership has converted debentures into common and preferred
stock that traditionally have lower current yields as compared to debentures.
Portfolio investments still held as debentures require interest payments
generally on either a monthly or quarterly basis. As of September 30, 1996,
all companies are current on interest payments with the following exceptions:
AmeriShop, Inc., is in arrears seven quarters in interest payments to the
Partnership in the aggregate amount of $854,986.11 and principal payments of
$247,500.00, of which all of the interest has been reserved. Biodynamics
International, Inc., is in arrears four quarters in interest payments to the
Partnership in the aggregate amount of $49,582.75. Tricom Corporation is in
arrears nine quarters in interest payments to the Partnership in the aggregate
amount of $625,311.30 and principal payments of $165,000.00 of which
$458,398.88 of the interest has been reserved. Prism Group, Inc. is in
arrears two quarters in interest payments to the Partnership in the aggregate
amount of $76,312.51 of which all has been reserved. Scientific Software-
Intercomp, Inc. is in arrears two quarters in interest payments to the
Partnership in the aggregate amount of $45,452.07. U.S. Fax, Inc. is in
arrears two quarters in interest payments to the Partnership in the aggregate
amount of $5,207.43.
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RENAISSANCE CAPITAL PARTNERS II, LTD.
November 19, 1996 /s/ Russell Cleveland
--------------------------------------------------
Renaissance Capital Group, Inc.,
Managing General Partner
Russell Cleveland, President
November 19, 1996 /s/ Barbe Butschek
---------------------------------------------------
Renaissance Capital Group, Inc.,
Managing General Partner
Barbe Butschek, Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C> <C> <C> <C>
<C>
<PERIOD-TYPE> YEAR 9-MOS 9-MOS 3-MOS
3-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1996 DEC-31-1995 DEC-31-1996
DEC-31-1995
<PERIOD-END> DEC-31-1995 SEP-30-1996 SEP-30-1995 SEP-30-1996
SEP-30-1995
<INVESTMENTS-AT-COST> 28,968,505 28,492,357 0 0
0
<INVESTMENTS-AT-VALUE> 28,598,520 25,895,444 0 0
0
<RECEIVABLES> 695,365 2,031,661 0 0
0
<ASSETS-OTHER> 130,790 86,366 0 0
0
<OTHER-ITEMS-ASSETS> 0 0 0 0
0
<TOTAL-ASSETS> 29,892,591 28,881,608 0 0
0
<PAYABLE-FOR-SECURITIES> 0 0 0 0
0
<SENIOR-LONG-TERM-DEBT> 0 0 0 0
0
<OTHER-ITEMS-LIABILITIES> 219,627 199,661 0 0
0
<TOTAL-LIABILITIES> 219,627 199,661 0 0
0
<SENIOR-EQUITY> 0 0 0 0
0
<PAID-IN-CAPITAL-COMMON> 0 39,074,847 0 0
0
<SHARES-COMMON-STOCK> 0 0 0 0
0
<SHARES-COMMON-PRIOR> 0 0 0 0
0
<ACCUMULATED-NII-CURRENT> 0 673,696 0 0
0
<OVERDISTRIBUTION-NII> 0 0 0 0
0
<ACCUMULATED-NET-GAINS> 0 (7,290,054) 0 0
0
<OVERDISTRIBUTION-GAINS> 0 (2,143,624) 0 0
0
<ACCUM-APPREC-OR-DEPREC> 0 (1,632,918) 0 0
0
<NET-ASSETS> 29,672,964 28,681,947 0 0
0
<DIVIDEND-INCOME> 0 13,144 142,433 4,447
14,456
<INTEREST-INCOME> 0 945,930 970,032 581,195
168,557
<OTHER-INCOME> 0 21,607 18,020 6,000
6,020
<EXPENSES-NET> 0 708,764 677,354 231,773
202,663
<NET-INVESTMENT-INCOME> 0 271,917 453,131 359,869
(13,630)
<REALIZED-GAINS-CURRENT> 0 963,994 1,526,624 963,994
1,527,250
<APPREC-INCREASE-CURRENT> 0 (2,226,928) 0 (1,594,962)
0
<NET-CHANGE-FROM-OPS> 0 (991,017) 1,979,755 (271,099)
1,513,620
<EQUALIZATION> 0 0 0 0
0
<DISTRIBUTIONS-OF-INCOME> 0 0 0 0
0
<DISTRIBUTIONS-OF-GAINS> 0 0 0 0
0
<DISTRIBUTIONS-OTHER> 0 0 0 0
0
<NUMBER-OF-SHARES-SOLD> 0 0 0 0
0
<NUMBER-OF-SHARES-REDEEMED> 0 0 0 0
0
<SHARES-REINVESTED> 0 0 0 0
0
<NET-CHANGE-IN-ASSETS> 0 (991,017) 1,979,755 (271,099)
1,513,620
<ACCUMULATED-NII-PRIOR> 0 0 0 0
0
<ACCUMULATED-GAINS-PRIOR> 0 0 0 0
0
<OVERDISTRIB-NII-PRIOR> 0 0 0 0
0
<OVERDIST-NET-GAINS-PRIOR> 0 0 0 0
0
<GROSS-ADVISORY-FEES> 0 422,877 413,977 144,130
173,274
<INTEREST-EXPENSE> 0 0 0 0
0
<GROSS-EXPENSE> 0 708,764 677,354 231,773
202,663
<AVERAGE-NET-ASSETS> 0 0 0 0
0
<PER-SHARE-NAV-BEGIN> 0 683 762 666
782
<PER-SHARE-NII> 0 (23) 45 (6)
11
<PER-SHARE-GAIN-APPREC> 0 0 0 0
0
<PER-SHARE-DIVIDEND> 0 0 0 0
0
<PER-SHARE-DISTRIBUTIONS> 0 0 (14) 0
0
<RETURNS-OF-CAPITAL> 0 0 0 0
0
<PER-SHARE-NAV-END> 0 660 793 660
793
<EXPENSE-RATIO> 0 0 0 0
0
<AVG-DEBT-OUTSTANDING> 0 0 0 0
0
<AVG-DEBT-PER-SHARE> 0 0 0 0
0
</TABLE>
