<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 1996
Commission File Number 0-21586
F-1000 FUTURES FUND L.P., SERIES IX
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 13-3678327
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
390 Greenwich St. - 1st Fl.
New York, New York 10013
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(Address and Zip Code of principal executive offices)
(212) 723-5424
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(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 ____
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F-1000 FUTURES FUND L.P., SERIES IX
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
Page
Number
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<S> <C>
PART I - Financial Information:
Item 1. Financial Statements:
Statements of Financial Condition
at March 31, 1996 and December 31,
1995 3
Statements of Income and Expenses
and Partners' Capital for the Three
Months ended March 31, 1996 and 1995 4
Notes to Financial Statements 5 - 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 7 - 9
PART II - Other Information 10
</TABLE>
2
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PART I
Item 1. Financial Statements
F-1000 FUTURES FUND L.P. SERIES IX
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
ASSETS -------------- --------------
(Unaudited)
<S> <C> <C>
Equity in commodity futures trading account:
Cash and cash equivalents $2,126,081 $2,527,638
Net unrealized appreciation
on open futures contracts
Zero Coupons, $9,152,000 and $9,473,000 186,660 440,322
principal amount in 1996 and 1995, respectively,
due May 15, 1999, at market value
(amortized cost $7,725,112 and $7,888,830,
respectively) 7,607,600 7,939,605
Commodity options owned, at market value
(cost $670) 690
-------------- --------------
9,920,341 10,908,255
Receivable from SB on sale of Zero Coupons 266,845 580,941
Interest receivable 7,025 9,187
Deferred organization expense 7,521
-------------- --------------
$10,194,211 $11,505,904
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued expenses:
Commissions $19,556 $24,150
Management fees 4,569 5,642
Other 37,444 26,090
Organization expense 16,708
Commodity options written, at market value
(premiums recieved $300) 320
Redemptions payable 343,351 780,417
-------------- --------------
404,920 853,327
Partners' Capital
General Partner, 103 Unit equivalents
outstanding in 1996 and 1995 110,172 115,825
Limited Partners, 9,049 and
9,370 Units of Limited Partnership
Interest outstanding in 1996 and 1995,
respectively 9,679,119 10,536,752
-------------- --------------
9,789,291 10,652,577
-------------- --------------
$10,194,211 $11,505,904
============== ==============
</TABLE>
See Notes to Financial statements.
3
<PAGE> 4
F-1000 FUTURES FUND L.P., SERIES IX
STATEMENTS OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
1996 1995
Income: --------------- ---------------
<S> <C> <C>
Net gains (losses) on trading of commodity futures:
Realized gains (losses) on closed positions $(119,038) $599,916
Change in unrealized gains/losses on open positions $(253,662) 146,712
--------------- ---------------
(372,700) 746,628
Less, brokerage commissions and clearing fees
($2,393 and $3,321, respectively) (69,450) (104,794)
--------------- ---------------
Net realized and unrealized gains (losses) (442,150) 641,834
Realized losses on sale of Zero Coupons (4,084) (85,651)
Unrealized appreciation (depreciation) on Zero Coupons (168,287) 418,570
Interest income 129,619 171,500
--------------- ---------------
(484,902) 1,146,253
--------------- ---------------
Expenses:
Management fees 14,130 22,000
Organization expense 7,521 38,252
Other 13,382 13,910
Incentive fees 89,966
--------------- ---------------
35,033 164,128
--------------- ---------------
Net income (loss) (519,935) 982,125
Redemptions (343,351) (1,719,938)
--------------- ---------------
Net decrease in Partners' capital (863,286) (737,813)
Partners' capital, beginning of period 10,652,577 12,519,509
--------------- ---------------
Partners' capital, end of period $9,789,291 $11,781,696
=============== ===============
Net asset value per Unit
(9,152 and 10,967 Units outstanding
at March 31,1996 and 1995, respectively) $1,069.63 $1,074.29
=============== ===============
Net income (loss) per Unit of Limited Partnership
Interest and General Partnership Unit equivalent $ (54.89) $ 78.15
=============== ===============
</TABLE>
See Notes to Financial Statements.
4
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F-1000 FUTURES FUND L.P., SERIES IX
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
General
F-1000 Futures Fund L.P., Series IX (the "Partnership") is a limited
partnership organized under the laws of the State of Delaware on August 25,
1992 to engage in the speculative trading of commodity interests, including
forward contracts on foreign currencies, commodity options and commodity
futures contracts, including futures contracts on U.S. Treasuries and certain
other financial instruments, foreign currencies and stock indices. The
commodity interests that are traded by the Partnership are volatile and involve
a high degree of market risk. The Partnership maintains a portion of its
initial assets in interest payments stripped from U.S. Treasury Bonds under the
Treasury's STRIPS program for which payments are due approximately six years
from the date trading commenced ("Zero Coupons"). The Partnership uses such
Zero Coupons and its other assets to margin its commodities account. The
Partnership commenced trading operations on March 9, 1993.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. Smith Barney Inc. ("SB"), an affiliate
of the General Partner, acts as commodity broker for the Partnership. All
trading decisions are made for the Partnership by Trendview Management, Inc.
and Rabar Market Research, Inc. (collectively, the "Advisors").
The accompanying financial statements are unaudited but, in the opinion
of management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at March 31, 1996 and the results of its operations for the three
months ended March 31, 1996 and 1995. These financial statements present the
results of interim periods and do not include all disclosures normally provided
in annual financial statements. It is suggested that these financial statements
be read in conjunction with the financial statements and notes included in the
Partnership's annual report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1995.
Due to the nature of commodity trading, the results of operations for
the interim periods presented should not be considered indicative of the
results that may be expected for the entire year.
5
<PAGE> 6
F-1000 FUTURES FUND L.P., SERIES IX
NOTES TO FINANCIAL STATEMENTS
(continued)
Net Asset Value Per Unit
Changes in net asset value per Unit for the three months ended March 31,
1996 and 1995 were as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-------------------------------------
1996 1995
------------ -----------
<S> <C> <C>
Net realized and unrealized
gains (losses) $ (46.67) $ 51.06
Realized and unrealized gains
(losses) on Zero Coupons (18.20) 26.49
Interest income 13.68 13.65
Expenses (3.70) (13.05)
---------- ----------
Increase (decrease) for period (54.89) 78.15
Net Asset Value per Unit,
beginning of period 1,124.52 996.14
---------- ----------
Net Asset Value per Unit,
end of period $1,069.63 $1,074.29
========== ==========
</TABLE>
6
<PAGE> 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its
only assets are its equity in its commodity futures trading account, consisting
of cash and cash equivalents, Zero Coupons, net unrealized appreciation
(depreciation) on open futures contracts, commodity options and interest
receivable. Because of the low margin deposits normally required in commodity
futures trading, relatively small price movements may result in substantial
losses to the Partnership. While substantial losses could lead to a
substantial decrease in liquidity no such losses occurred in the Partnership's
first quarter of 1996.
The Partnership is party to financial instruments with off-balance
sheet risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
include forwards, futures and options, whose value is based upon an underlying
asset, index, or reference rate, and generally represent future commitments to
exchange currencies or cash flows, or to purchase or sell other financial
instruments at specified terms at specified future dates. Each of these
instruments is subject to various risks similar to those relating to the
underlying financial instruments including market and credit risk. The
General Partner monitors and controls the Partnership's risk exposure on a
daily basis through financial, credit and risk management monitoring systems
and, accordingly believes that it has effective procedures for evaluating and
limiting the credit and market risks to which the Partnership is subject.
The Partnership's capital consists of capital contributions, as
increased or decreased by gains or losses on commodity futures trading and Zero
Coupons, expenses, interest income, redemptions of Units and distributions of
profits, if any.
For the three months ended March 31, 1996, Partnership capital
decreased 8.1% from $10,652,577 to $9,789,291. This decrease was attributable
to the redemption of 321 limited partnership Units resulting in an outflow of
$343,351 and a net loss from operations of $519,935 during the three months
ended March 31, 1996. Future redemptions can impact the amount of funds
available for investments in commodity contract positions in subsequent
periods.
Results of Operations
During the Partnership's first quarter of 1996, the net asset value
per Unit decreased 4.9% from $1,124.52 to $1,069.63 as
7
<PAGE> 8
compared to the first quarter of 1995 in which the net asset value per Unit
increased 7.8%. The Partnership experienced a net trading loss before
commissions and expenses in the first quarter of 1996 of $372,700. Losses were
recognized in the trading of commodity futures in precious metals, energy
products, interest rates, agricultural products, currencies and stock indices.
The Partnership experienced a net trading gain before commissions and expenses
in the first quarter of 1995 of $746,628. Realized gains were incurred in the
trading of commodity futures in stock indices, foreign currencies, interest
rates and agricultural products and were partially offset by losses realized in
energy products and precious metals.
Commodity futures markets are highly volatile. Broad price
fluctuations and rapid inflation increase the risks involved in commodity
trading, but also increase the possibility of profit. The profitability of the
Partnership depends on the existence of major price trends and the ability of
the Advisors to identify correctly those price trends. These price trends are
influenced by, among other things, changing supply and demand relationships,
weather, governmental, agricultural, commercial and trade programs and
policies, national and international political and economic events and changes
in interest rates. To the extent that market trends exist and the Advisors are
able to identify them, the Partnership expects to increase capital through
operations.
Interest income on 75% of the Partnership's daily average equity
maintained in cash was earned on the monthly average 13-week U.S. Treasury
bill yield. Also included in interest income is the amortization of original
issue discount on the Zero Coupons based on the interest method. Interest
income for the three months ended March 31, 1996 decreased by $41,881 as
compared to the corresponding period in 1995. The decrease in interest income
is primarily due to the effect of redemptions on the Partnership's Zero Coupons
and equity maintained in cash in addition to a decrease in interest rates in
the first quarter of 1996 as compared to the first quarter of 1995.
Brokerage commissions are calculated on the adjusted net asset value
on the last day of each month and, therefore, vary according to trading
performance and redemptions. Accordingly, they must be compared in relation to
the fluctuations in the monthly net asset values. Commissions and clearing
fees for the three months ended March 31, 1996 decreased by $35,344 as compared
to the corresponding period in 1995.
All trading decisions for the Partnership are currently being made by
the Advisors. Management fees are calculated as a percentage of the
Partnership's net asset value as of the end of each month and are affected by
trading performance and redemptions. Management fees for the three months
ended March 31, 1996 decreased by $7,870 as compared to the corresponding
period in 1995.
8
<PAGE> 9
Incentive fees are based on the new trading profits generated by each
Advisor as defined in the advisory agreements between the Partnership, the
General Partner and each Advisor. No incentive fees were earned for the three
months ended March 31, 1996. Trading performance for the three months ended
March 31, 1995 resulted in incentive fees of $89,966.
9
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PART II OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
10
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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.
F-1000 FUTURES FUND L.P., SERIES IX
By: Smith Barney Futures Management Inc.
-------------------------------------
(General Partner)
By: /s/ David J. Vogel, President
-------------------------------------
David J. Vogel, President
Date: 5/10/96
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
-------------------------------------
(General Partner)
By: /s/ David J. Vogel, President
-------------------------------------
David J. Vogel, President
Date: 5/10/96
By: /s/ Daniel A. Dantuono
-------------------------------------
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 5/10/96
11
<PAGE> 12
EXHIBIT INDEX
-------------
Exhibit
No. Description
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000892381
<NAME> F-1000 FUTURES FUND L.P., SERIES IX
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,126,081
<SECURITIES> 7,794,260
<RECEIVABLES> 273,870
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,194,211
<CURRENT-LIABILITIES> 404,920
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,789,291
<TOTAL-LIABILITY-AND-EQUITY> 10,194,211
<SALES> 0
<TOTAL-REVENUES> (484,902)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 35,033
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (519,935)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (519,935)
<EPS-PRIMARY> (54.89)
<EPS-DILUTED> 0
</TABLE>
