<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1997
OR
/ /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: 0-26002
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3702808
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
One New York Plaza, 14th Floor, New York, New York 10292
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
Indicate by check CK 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 _CK_ No __
<PAGE>
Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $1,692,858 $2,303,638
U.S. Treasury bills, at amortized cost 6,111,408 7,205,981
Net unrealized gain on open commodity positions 311,928 239,559
---------- ------------
Net equity 8,116,194 9,749,178
Organizational costs, net 3,021 5,157
---------- ------------
Total assets $8,119,215 $9,754,335
---------- ------------
---------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 560,551 $ 650,836
Accrued expenses 105,108 77,089
Options, net, at market 28,759 28,167
Management fees payable 13,309 16,082
---------- ------------
Total liabilities 707,727 772,174
---------- ------------
Commitments
Partners' capital
Limited partners (79,249.135 and 91,609.501 units outstanding) 7,336,866 8,892,274
General partner (806 and 926 units outstanding) 74,622 89,887
---------- ------------
Total partners' capital 7,411,488 8,982,161
---------- ------------
Total liabilities and partners' capital $8,119,215 $9,754,335
---------- ------------
---------- ------------
Net asset value per limited and general partnership unit ('Units') $ 92.58 $ 97.07
---------- ------------
---------- ------------
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements
</TABLE>
2
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
---------------------------- ----------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
REVENUES
Net realized loss on commodity
transactions $ (226,482) $ (821,543) $ (12,902) $ (729,868)
Change in net unrealized gain/loss
on open commodity positions 134,752 (607,112) 311,146 (30,930)
Interest from U.S. Treasury bills 163,282 226,443 77,808 99,939
Other interest income 37,061 51,270 22,268 26,299
----------- ------------ ----------- ------------
108,613 (1,150,942) 398,320 (634,560)
----------- ------------ ----------- ------------
EXPENSES
Commissions 328,491 443,602 152,464 203,849
Other transaction fees 35,134 37,654 18,078 12,210
Management fees 81,547 108,064 38,419 49,511
General and administrative 87,836 67,394 44,709 18,970
Amortization of organizational
costs 1,573 2,324 757 1,136
----------- ------------ ----------- ------------
534,581 659,038 254,427 285,676
----------- ------------ ----------- ------------
Net income (loss) $ (425,968) $ (1,809,980) $ 143,893 $ (920,236)
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ (421,705) $ (1,786,179) $ 142,453 $ (911,030)
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
General partner $ (4,263) $ (23,801) $ 1,440 $ (9,206)
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
NET INCOME (LOSS) PER WEIGHTED
AVERAGE LIMITED AND GENERAL
PARTNERSHIP UNIT
Net income (loss) per weighted
average limited and general
partnership unit $ (4.77) $ (14.02) $ 1.67 $ (7.31)
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
Weighted average number of limited
and general partnership units
outstanding 89,324.015 129,059.906 86,112.529 125,856.820
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements
</TABLE>
3
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GENERAL
UNITS PARTNERS PARTNER TOTAL
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1996 92,535.501 $ 8,892,274 $ 89,887 $ 8,982,161
Net loss -- (421,705) (4,263) (425,968)
Redemptions (12,480.366) (1,133,703) (11,002) (1,144,705)
----------- ----------- -------- -----------
Partners' capital--June 30, 1997 80,055.135 $ 7,336,866 $ 74,622 $ 7,411,488
----------- ----------- -------- -----------
----------- ----------- -------- -----------
- -------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement
</TABLE>
4
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of Prudential Securities Aggressive Growth Fund L.P. (the
'Partnership') as of June 30, 1997 and the results of its operations for the six
and three months ended June 30, 1997. However, the operating results for the
interim periods may not be indicative of the results expected for a full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 1996 (the 'Annual Report').
B. Related Parties
Prudential Securities Futures Management Inc. (the 'General Partner') and its
affiliates perform services for the Partnership which include, but are not
limited to: brokerage services; accounting and financial management; registrar,
transfer and assignment functions; investor communications; printing and other
administrative services. The costs incurred for these services were:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
--------------------- ---------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Commissions $ 328,491 $ 443,602 $ 152,464 $ 203,849
General and administrative 44,837 40,547 20,828 15,848
--------- --------- --------- ---------
$ 373,328 $ 484,149 $ 173,292 $ 219,697
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Expenses payable to the General Partner and its affiliates as of June 30,
1997 and December 31, 1996 were $61,319 and $21,231, respectively.
The General Partner is a wholly-owned subsidiary of Prudential Securities
Incorporated ('PSI'). The Partnership maintains its trading and cash accounts at
PSI, the Partnership's commodity broker. Approximately 75% of the Partnership's
assets are invested in interest-earning U.S. Treasury obligations (primarily
U.S. Treasury bills), a significant portion of which is utilized for margin
purposes for the Partnership's trading activities. As described in the Annual
Report, all commissions for brokerage services are paid to PSI.
In connection with the Partnership's interbank transactions, PSI engages in
foreign currency forward transactions with the Partnership and an affiliate of
PSI who, as principal, attempts to earn a profit on the bid-ask spreads (which
must be competitive) on any foreign currency forward transactions entered into
between the Partnership and PSI, on the one hand, and PSI and such affiliate on
the other. In connection with its trading of foreign currencies in the interbank
market, PSI may arrange bank lines of credit at major international banks. To
the extent such lines of credit are arranged, PSI does not charge the
Partnership for maintaining such lines of credit, but requires margin deposits
with respect to forward contract transactions.
As of June 30, 1997, a non-U.S. affiliate of the General Partner owns 249.772
limited partnership units of the Partnership.
5
<PAGE>
<PAGE>
C. Credit and Market Risk
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk).
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level of volatility of interest rates, foreign
currency exchange rates or the market values of the contracts (or commodities
underlying the contracts) frequently result in changes in the Partnership's
unrealized gain (loss) on open commodity positions reflected in the statements
of financial condition. The Partnership's exposure to market risk is influenced
by a number of factors including the relationships among the contracts held by
the Partnership as well as the liquidity of the markets in which the contracts
are traded.
Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts,
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain limitations) of the members of the
exchanges is pledged to support the financial integrity of the exchange. On the
other hand, the Partnership must rely solely on the credit of its broker (PSI)
with respect to forward transactions. To the extent that the Partnership engages
in forward transactions, it will present its unrealized gains and losses on open
forward positions as a net amount in its statements of financial condition
because it has a master netting agreement with PSI.
The General Partner attempts to minimize both credit and market risks by
requiring the Partnership's trading managers to abide by various trading
limitations and policies. The General Partner monitors compliance with these
trading limitations and policies which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties (currently,
PSI is the sole counterparty or broker); limiting the amount of margin or
premium required for any one commodity or all commodities combined; and
generally limiting transactions to contracts which are traded in sufficient
volume to permit the taking and liquidating of positions. The General Partner
may impose additional restrictions (through modifications of such trading
limitations and policies) upon the trading activities of the trading managers as
it, in good faith, deems to be in the best interests of the Partnership.
PSI, when acting as the Partnership's futures commission merchant in
accepting orders for the purchase or sale of domestic futures and options
contracts, is required by Commodity Futures Trading Commission ('CFTC')
regulations to separately account for and segregate as belonging to the
Partnership all assets of the Partnership relating to domestic futures and
options trading and is not to commingle such assets with other assets of PSI. At
June 30, 1997 and December 31, 1996, such segregated assets totalled $6,039,570
and $6,681,753, respectively. Part 30.7 of the CFTC regulations also requires
PSI to secure assets of the Partnership related to foreign futures and options
trading which totalled $2,047,865 and $3,039,258 at June 30, 1997 and December
31, 1996, respectively. There are no segregation requirements for assets related
to forward trading.
As of June 30, 1997 and December 31, 1996, the Partnership's open futures and
options contracts mature within nine months.
At June 30, 1997 and December 31, 1996, gross contract amounts of open
futures and options contracts were:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
------------- -----------------
<S> <C> <C>
Financial Futures and Options Contracts:
Commitments to purchase $ 143,760,020 $ 164,104,016
Commitments to sell $ 5,458,085 $ 27,390,279
Currency Futures and Options Contracts:
Commitments to purchase $ 1,726,982 $ 6,277,845
Commitments to sell $ 3,068,612 $ 2,997,574
Other Futures Contracts:
Commitments to purchase $ -- $ 87,850
</TABLE>
6
<PAGE>
The gross contract amounts represent the Partnership's potential involvement
in a particular class of financial instrument (if it were to take or make
delivery on an underlying futures or options contract). The gross contract
amounts significantly exceed the future cash requirements as the Partnership
intends to close out open positions prior to settlement and thus is generally
subject only to the risk of loss arising from the change in the value of the
contracts. As such, the Partnership considers the 'fair value' of its futures,
forward and options contracts to be the net unrealized gain or loss on the
contracts (plus premiums on options). Thus, the amount at risk associated with
counterparty nonperformance of all contracts is the net unrealized gain included
in the statements of financial condition. The market risk associated with the
Partnership's commitments to purchase commodities is limited to the gross
contract amounts involved, while the market risk associated with its commitments
to sell is unlimited since the Partnership's potential involvement is to make
delivery of an underlying commodity at the contract price; therefore, it must
repurchase the contract at prevailing market prices.
At June 30, 1997 and December 31, 1996, the fair value of open futures and
options contracts were:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
------------------------ ------------------------
Fair Value Fair Value
------------------------ ------------------------
Assets Liabilities Assets Liabilities
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 8,050 $ 1,031 $ -- $ 1,350
Currencies 60,649 7,305 150,473 5,008
Other -- -- -- 5,010
Foreign exchanges
Financial 290,768 39,203 236,276 135,822
Options Contracts:
Domestic exchanges
Financial -- 28,228 -- 12,450
Currencies 9,338 12,700 -- --
Foreign exchanges
Financial 2,831 -- -- 15,717
-------- ----------- -------- -----------
$371,636 $88,467 $386,749 $ 175,357
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures and options
contracts during the six and three months ended June 30, 1997 and 1996,
respectively.
<TABLE>
<CAPTION>
For the six months ended For the three months ended
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
--------------------------------------------------------------------------------------------------------
Average Fair Value Average Fair Value Average Fair Value Average Fair Value
----------------------- ----------------------- ----------------------- -----------------------
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
-------- ----------- -------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 17,527 $ 742 $ 18,564 $ 1,204 $ 25,109 $ 258 $ 8,969 $ 2,106
Currencies 113,722 7,733 59,734 6,627 40,661 11,193 71,531 4,635
Other -- 716 -- -- -- -- -- --
Foreign exchanges
Financial 183,302 47,151 259,242 29,896 184,456 31,457 106,722 30,477
Options Contracts:
Domestic exchanges
Financial -- 23,876 -- -- -- 32,887 -- --
Currencies 1,334 10,902 -- -- 2,334 19,078 -- --
Foreign exchanges
Financial 7,033 4,586 -- -- 12,308 1,144 -- --
-------- ----------- -------- ----------- -------- ----------- -------- -----------
$322,918 $95,706 $337,540 $37,727 $264,868 $96,017 $187,222 $37,218
-------- ----------- -------- ----------- -------- ----------- -------- -----------
-------- ----------- -------- ----------- -------- ----------- -------- -----------
</TABLE>
7
<PAGE>
The following table presents the net realized gains (losses) and the change
in net unrealized gains/losses of futures and options contracts during the six
months ended June 30, 1997 and 1996, respectively.
<TABLE>
<CAPTION>
For the six months ended June 30, 1997 For the six months ended June 30, 1996
----------------------------------------------- -------------------------------------------------
Change in Net Change in Net
Net Realized Unrealized Net Realized Unrealized
Gains (Losses) Gains/Losses Total Gains (Losses) Gains/Losses Total
-------------- -------------- --------- -------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 140,169 $ 8,369 $ 148,538 $ 30,581 $ (35,313) $ (4,732)
Currencies 82,639 (92,121) (9,482) 31,171 (1,185) 29,986
Other (3,227) 5,010 1,783 -- -- --
Foreign exchanges
Financial (388,294) 151,111 (237,183) (883,295) (570,614) (1,453,909)
Options Contracts:
Domestic exchanges
Financial (1,367) 5,214 3,847 -- -- --
Currencies 14,119 17,629 31,748 -- -- --
Foreign exchanges
Financial (70,521) 39,540 (30,981) -- -- --
-------------- -------------- --------- -------------- -------------- -----------
$ (226,482) $134,752 $ (91,730) $ (821,543) $ (607,112) $(1,428,655)
-------------- -------------- --------- -------------- -------------- -----------
-------------- -------------- --------- -------------- -------------- -----------
</TABLE>
The following table presents the net realized gains (losses) and the change
in net unrealized gains/losses of futures and options contracts during the three
months ended June 30, 1997 and 1996, respectively.
<TABLE>
<CAPTION>
For the three months ended June 30, 1997 For the three months ended June 30, 1996
---------------------------------------------- -----------------------------------------------
Change in Net Change in Net
Net Realized Unrealized Net Realized Unrealized
Gains (Losses) Gains/Losses Total Gains (Losses) Gains/Losses Total
-------------- -------------- -------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $143,363 $ (7,044) $136,319 $ (16,988) $(10,631) $ (27,619)
Currencies (13,499) 50,178 36,679 18,066 10,003 28,069
Foreign exchanges
Financial (75,007) 278,404 203,397 (730,946) (30,302) (761,248)
Options Contracts:
Domestic exchanges
Financial (1,387) (4,911) (6,298) -- -- --
Currencies 12,025 17,187 29,212 -- -- --
Foreign exchanges
Financial (78,397) (22,668) (101,065) -- -- --
-------------- -------------- -------- -------------- -------------- ---------
$(12,902) $311,146 $298,244 $ (729,868) $(30,930) $(760,798)
-------------- -------------- -------- -------------- -------------- ---------
-------------- -------------- -------- -------------- -------------- ---------
</TABLE>
8
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership commenced trading operations on August 2, 1993 with net
proceeds of $10,180,534. The Partnership continued to offer Units on a monthly
basis until the continuous offering was terminated on January 31, 1995.
Additional contributions raised through the continuous offering resulted in
additional net proceeds to the Partnership of $9,988,243.
At June 30, 1997, 100% of the Partnership's total net assets were allocated
to commodities trading. A significant portion of the net asset value was held in
U.S. Treasury bills (which represented approximately 77% of the net asset value
prior to redemptions payable) and cash, which are used as margin for the
Partnership's trading in commodities. Inasmuch as the sole business of the
Partnership is to trade in commodities, the Partnership continues to own such
liquid assets to be used as margin.
The commodity contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
prices during a single day by regulations referred to as 'daily limits.' During
a single day no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
neither be taken nor liquidated unless traders are willing to effect trades at
or within the daily limit. Commodity futures prices have occasionally moved the
daily limit for several consecutive days with little or no trading. Such market
conditions could prevent the Partnership from promptly liquidating its commodity
futures positions.
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk). The General Partner attempts to minimize these
risks by requiring the Partnership's trading managers to abide by various
trading limitations and policies. See Note C to the financial statements for a
further discussion on the credit and market risks associated with the
Partnership's futures, forward and options contracts.
Redemptions by limited partners for the six and three months ended June 30,
1997 were $1,133,703 and $555,609, respectively. Redemptions by General Partner
for the six and three months ended June 30, 1997 were $11,002 and $5,184,
respectively. Redemptions recorded for the period from August 2, 1993
(commencement of operations) through June 30, 1997 were $11,362,439 for limited
partners and $114,505 for the General Partner. Future redemptions will impact
the amount of funds available for investments in commodity contracts in
subsequent periods.
Results of Operations
The net asset value per Unit as of June 30, 1997 was $92.58, a decrease of
4.63% from the December 31, 1996 net asset value per Unit of $97.07.
April's negative performance resulted from losses in the financial sector.
Profits were earned in the currency and stock index sector. In the financial
sector, losses were incurred in long Australian and Japanese bond positions and
short positions in British, Canadian, French, Japanese, Italian and Spanish
bonds. The aftershock from the U.S. Federal Reserve's 25 basis point interest
rate increase on March 25th resulted in little follow through to higher interest
rates. Instead, global bond prices dropped to a 1997 low in the second week of
April and then rallied as economic reports showing slower economic growth with
little inflation caused U.S. interest rates to fall. In Australia, a bearish
employment report caused a loss in long Australian bond positions. In the
currency sector, Swiss franc, German mark, Japanese yen, British pound and
Mexican peso positions were profitable. In the stock index sector, positions in
the S&P 500 and DTB (the German stock market) posted gains for the Partnership.
May's relatively flat performance was the result of gains in the financial
and index sectors which offset losses in the currency sector. The French
presidential campaign dominated the European bond market in May. As the May 25th
election approached, polls showed the contest between the incumbent President,
Jacques Chirac, and the Socialist Party challenger, Lionel Jospin, was too close
to call. This prevented the French and German bond markets from making any
significant price moves. In the financial sector, Japa-
9
<PAGE>
nese, Spanish, Australian and Swiss bond positions were profitable. In the index
sector, gains were experienced in the S&P 500, DAX, Hong Kong HangSeng and FTSE
indices. In the currency sector, the German mark gained value against the U.S.
dollar providing losses for the Partnership. The dollar weakened as moderate
U.S. price data lessened the likelihood of an increase in interest rates by the
Federal Reserve. This was furthered by Federal Reserve Chairman Greenspan's
expectation of slowing economic growth later in the year. As a result, the
German mark gained value against the dollar.
June's positive performance resulted from gains in all sectors traded which
encompassed the financial, index and currency sectors. A drop in U.S. long-term
interest rates from 7.0% to 6.75% gave a bullish tone to the Australian,
Canadian, and European bond markets in the financial sector. In addition, the
European bond market rallied on the continued expectation that the European
Monetary Union will come to fruition early next year, including both Spain and
Italy in the initial group of members. Positions in German, Italian and Spanish
bonds benefited from this news. Slower economic growth in Australia supported
the bond market, thus profiting the Partnership. Canadian bonds followed the
U.S. bond market higher until month end when the Canadian central bank raised
short term rates, thus yielding profits in these bond positions. In the currency
sector, the Partnership saw gains in the Japanese yen and German mark. In the
index sector, German DAX and S&P 500 positions were profitable. Also, many cross
rates were profitable in the currency sector including Deutsche mark/British
pound, Japanese yen/Deutsche mark and Italian lira/Deutsche mark positions.
Beginning in July, Sjo, Inc., a trading manager to the Partnership,
implemented their enhanced Foreign Financials program. This enhancement adds a
third component that determines market and portfolio weights utilizing a
modified efficient frontier methodology.
Interest income on U.S. Treasury bills decreased by approximately $63,000 and
$22,000 for the six and three months ended June 30, 1997 compared to the
corresponding periods in 1996. These decreases were primarily the result of
redemptions during 1996 and 1997 which reduced the Partnership's net assets and
therefore, its investments in U.S. Treasury bills. Additionally, other interest
income, which consists of interest earned on equity balances held at PSI,
decreased for the six and three months ended June 30, 1997 by approximately
$14,000 and $4,000 as compared to the corresponding periods in 1996.
Commissions are calculated on the Partnership's net asset value as of the
first day of each month and, therefore, vary according to trading performance
and redemptions. Commissions decreased by approximately $115,000 and $51,000 for
the six and three months ended June 30, 1997 compared to the corresponding
periods in 1996 primarily as a result of 1996 and 1997 redemptions which reduced
the monthly net asset values.
Other transaction fees consist of National Futures Association, exchange and
clearing fees which are based on the number of trades the trading managers
execute. Other transaction fees decreased by approximately $3,000 for the six
months ended June 30, 1997, but increased by approximately $6,000 for the three
months ended June 30, 1997 compared to the corresponding periods in 1996
primarily due to fluctuations in trading volume.
All trading decisions are currently being made by Sjo, Inc. and Welton
Investment Systems Corporation (the 'Trading Managers'). Management fees are
calculated on the portion of the Partnership's net asset value allocated to each
Trading Manager at the end of each month and, therefore, are affected by trading
performance and redemptions. Management fees decreased approximately $27,000 and
$11,000 for the six and three months ended June 30, 1997 compared to the
corresponding periods in 1996 primarily due to redemptions which reduced the
monthly net asset values.
Incentive fees are based on the New High Net Trading Profits generated by
each Trading Manager as defined in the Advisory Agreement between the
Partnership, the General Partner and each Trading Manager. No incentive fees
were earned during the first six months of 1997 or 1996.
General and administrative expenses increased by approximately $20,000 and
$26,000 for the six and three months ended June 30, 1997 as compared to the same
periods in 1996. These expenses include reimbursements of cost incurred by the
General Partner on behalf of the Partnership in addition to accounting, audit,
tax and legal fees as well as printing and postage costs related to reports sent
to limited partners.
10
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against the Registrant or the General Partner.
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--
3.1-- Agreement of Limited Partnership of the Registrant, dated as
of March 19, 1993 as amended and restated as of May 6, 1993
(Incorporated by reference to Exhibit A to Registrant's
Amendment No. 1 to Registration Statement on Form S-1, File
No. 33-59828 dated May 7, 1993)
27.1--Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--None
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
By: Prudential Securities Futures Management
Inc.A Delaware corporation, General Partner
By: /s/ Steven Carlino Date: August 14, 1997
----------------------------------------
Steven Carlino
Vice President and
Chief Accounting Officer for the
Registrant
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Prudential Securities Aggressive
Growth Fund, L.P. and is qualified in its
entirety by reference to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0000899174
<NAME> Prudential Securities Aggressive Growth Fund, L.P.
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0
0
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