<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Fiscal Year Ended: December 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number: 0-26932
THE MILLBURN WORLD RESOURCE TRUST
(Exact name of registrant as specified in its charter)
Delaware 06-6415-583
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
600 Steamboat Road
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant None
to Section 12(b) of the Act:
Securities registered pursuant Units of Beneficial Interest
to Section 12(g) of the Act: (Title of Class)
Indicate by check mark whether the registrant (1) 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 [ ]
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulations S-K is not contained
herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]
Aggregate market value of the voting stock held by non-
affiliates: the registrant is a business trust and, accordingly
has no voting stock held by non-affiliates or otherwise.
Documents Incorporated by Reference
None
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PART I
Item 1. Business
(a) General development of business
The Millburn World Resource Trust (the "Trust") is a
business trust organized June 7, 1995 pursuant to a Declara-
tion of Trust and Trust Agreement (the "Trust Agreement"),
under the Delaware Business Trust Act. Between July 12,
1995 and September 11, 1995 (the "Initial Offering"), units
of beneficial interest in the Trust (the "Units") were pub-
licly offered. The proceeds of the Initial Offering and
interest thereon were held in escrow until September 13,
1995 at which time an aggregate of $15,141,664 (15,141.664
Units) was turned over to the Trust and the Trust commenced
operations. Units continue to be offered on a monthly basis
at Net Asset Value per unit. The offering is registered
under the Securities Act of 1933, as amended. Prudential
Securities Incorporated and PaineWebber Incorporated act as
principal selling agents on a best efforts basis. A total
of 15,141.664 Units were sold to the public during the ini-
tial public offering, an additional 8,926.004 Units were
subsequently sold to the public as of December 31, 1995 and
an additional 30,447.301 were subsequently sold to the pub-
lic as of December 31, 1996.
The Trust engages in speculative trading in the
futures, options and forward markets.
Millburn Ridgefield Corporation (the "Managing Owner"),
a Delaware corporation, is the managing owner and the commo-
dity trading advisor for the Trust. The Managing Owner
invested $400 in the Trust as an initial capital contribu-
tion to the Trust and $155,005 in the Trust at the outset of
trading and subsequently has contributed an additional
$85,000 as of December 31, 1995 and an additional $217,000
as of December 31, 1996. After reflecting net income of
$100,972, profit share of $829,793 in 1996 and deductions
for redemptions of $460,840 in 1996, this investment totaled
$1,417,312, as of December 31, 1996.
(b) Financial information about industry segments
The Partnership's business constitutes only one seg-
ment, i.e., a speculative commodity pool. The Partnership
does not engage in sales of goods and services.
(c) Narrative description of business
The Trust engages in the speculative trading of
futures, options on futures and forward contracts. The
Trust's sole trading advisor is the Managing Owner. The
Managing Owner trades the Trust's assets in the agricul-
tural, metals, energy, interest rate and stock indices
futures and futures options markets and in the currency
markets, trading primarily forward contracts in the inter-
bank market.
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Pursuant to the Trust Agreement, the Managing Owner
receives a flat-rate monthly brokerage fee equal to 0.75 of
1% of the month-end Net Assets (a 9.0% annual rate). The
Managing Owner retains the right to charge less than the
annual brokerage rate of 9% to those subscribers who either
invest $1,000,000 or more in the Units or subscribe without
incurring the selling commission paid by the Managing Owner.
The Managing Owner also receives a profit share equal to
17.5% of any new trading profit as defined, determined as of
the end of each calendar quarter. The quarterly profit
share is calculated net of brokerage fees and administrative
expenses and excluding interest income.
Prudential Securities Incorporated and PaineWebber
Incorporated (the "Brokers") act as the primary futures
brokers for the Trust. The Trust executes currency forward
trades with Prudential Securities Incorporated. The Trust
pays "bid asked" spreads on its forward trades, as such
spreads are incorporated into the pricing of forward con-
tracts. The Managing Owner monitors the Trust's trades to
ensure that the prices it receives are competitive.
The Trust's organizational and initial offering costs,
$600,000, were advanced by the Managing Owner, for which it
is being reimbursed by the Trust in 24 equal monthly
installments. The Trust will pay any extraordinary expenses
which it may incur.
The Trust is open-ended and offers Units on a continu-
ing basis at net asset value as of the first day of each
month. Unitholders may redeem any or all of their Units
upon business 10 days' written notice to the Managing Owner
at their net asset value as of the last day of any month.
Units redeemed on or prior to the end of the first and
second successive six-month periods after their sale will
pay a redemption charge of 4% and 3%, respectively, of the
net asset value at which they are redeemed (3% and 2%,
respectively, in the case of subscriptions for $1,000,000 or
more). These redemption charges are paid to the Managing
Owner. Requests for redemption will be honored and payment
will be made, except in the event of highly unusual market
disruptions, within 15 business days of the effective date
of redemption.
The Trust's assets not deposited as margin are main-
tained, unless applicable foreign regulations require other-
wise, only in instruments authorized by the CFTC for the
investment of "customer segregated funds."
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Regulation
Under the Commodity Exchange Act, as amended (the
"CEA"), commodity exchanges and futures trading are subject
to regulation by the Commodity Futures Trading Commission
(the "CFTC"). National Futures Association ("NFA"), a
"registered futures association" under the CEA, is the only
non-exchange self-regulatory organization for futures indus-
try professionals. The CFTC has delegated to NFA responsi-
bility for the registration of "commodity trading advisors,"
"commodity pool operators," "futures commission merchants,"
"introducing brokers" and their respective associated per-
sons and "floor brokers" and "floor traders." The CEA
requires commodity pool operators and commodity trading
advisors, such as the Managing Owner, and commodity brokers
or futures commission merchants, such as the Brokers and the
Managing Owner, to be registered and to comply with various
reporting and record keeping requirements. The CFTC may
suspend a commodity pool operator's or trading advisor's
registration if it finds that its trading practices tend to
disrupt orderly market conditions or in certain other situa-
tions. In the event that the registration of the Managing
Owner as a commodity pool operator or a commodity trading
advisor were terminated or suspended, the Managing Owner
would be unable to continue to manage the business of the
Trust.
Should the Managing Owner's registration be suspended,
termination of the Trust might result.
As members of NFA, the Managing Owner and the Brokers
are subject to NFA standards relating to fair trade prac-
tices, financial condition and customer protection. As the
self-regulatory body of the futures industry, NFA promul-
gates rules governing the conduct of futures industry pro-
fessionals and disciplines those professionals which do not
comply with such standards.
In addition to such registration requirements, the CFTC
and certain commodity exchanges have established limits on
the maximum net long or net short position which any person
may hold or control in particular commodities. The CFTC has
adopted a rule requiring all domestic commodity exchanges to
submit for approval speculative position limits for all
futures contracts traded on such exchanges.
Most exchanges also limit the changes in futures contract
prices that may occur during a single trading day.
Currency forward contracts are not subject to regulation by
any United States Government agency.
(i) through (xii) - not applicable.
(xiii) the Trust has no employees.
(d) Financial information about foreign and domestic
operations and export sales
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The Trust does not engage in material operations in
foreign countries (although it does trade in foreign
currency forward contracts), nor is a material portion of
its revenues derived from foreign customers.
Item 2. Properties
The Trust does not own or use any physical properties
in the conduct of its business. The Managing Owner or an
affiliate perform all administrative services for the Trust
from their offices.
Item 3. Legal Proceedings
The Managing Owner is not aware of any pending legal
proceedings to which either the Trust is a party or to which
any of its assets are subject. In addition there are no
pending material legal proceedings involving the Managing
Owner.
Item 4. Submission of Matters to a Vote of Security Holders
None.
PART II
Item 5. Market for the Registrant's Common Equity and Related
Stockholder Matters
(a) Market Information.
There is no trading market for the Units, and none is
likely to develop. Units may be redeemed upon business 10
days' written notice to the Managing Owner at their net
asset value as of the last day of any month, subject to cer-
tain early redemption charges.
(b) Holders.
As of December 31, 1996, there were 2,214 holders of
Units.
(c) Dividends.
No distributions or dividends have been made on the
Units, and the Managing Owner has no present intention to
make any.
Item 6. Selected Financial Data
The following is a summary of operations for the fiscal
year 1996 and for the period from September 13, 1995 to
December 31, 1995, and total assets of the Trust at December
31, 1996 and 1995. The Partnership commenced trading opera-
tions on September 13, 1995.
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For the Year For the period
Ended December September 13,
31, 1995 1995 to
December 31,
1995
Revenue:
Net realized and unrealized trading $5,143,118 $2,733,790
gain, net of brokerage commissions of
$3,998,675 and $548,790 in 1996 and
1995, respectively
Interest income 2,115,972 303,229
7,259,090 3,037,019
Foreign exchange loss (72,910) (9,539)
Total income $7,186,180 3,027,480
Expenses:
Profit share 829,081 460,840
Administrative expenses 519,753 59,492
Total expenses $1,348,834 520,332
Net Income $5,837,346 $2,507,148
Total assets $58,916,566 27,177,664
Total limited partners' capital $54,723,006 25,201,890
Net asset value per Unit $ 1,150.14 1,050.69
Redemption value per Unit $ 1,154.81 1,072.34
Increase in net asset value per Unit $99.45 $50.69
Increase in redemption value per Unit $82.47 $72.34
Item 7. Management's Discussion and Analysis of Financial Con-
dition and Results of Operations
Reference is made to "Item 6. Selected Financial Data"
and "Item 8. Financial Statements and Supplementary Data."
The information contained therein is essential to, and
should be read in conjunction with, the following analysis.
<PAGE>
Capital Resources
Units are offered for sale as of the beginning, and may
be redeemed as of the end, of each month.
The amount of capital raised for the Trust should not
have a significant impact on its operations, as the Trust
has no significant capital expenditure or working capital
requirements other than for monies to pay trading losses,
brokerage commissions and charges. Within broad ranges of
capitalization, the Managing Owner's trading positions
should increase or decrease in approximate proportion to the
size of the Trust.
The Trust raises additional capital only through the
sale of Units and trading profits (if any) and does not
engage in borrowing.
The Trust trades futures, options and forward contracts
on interest rates, commodities, currencies, metals, energy
and stock indices. Risk arises from changes in the value of
these contracts (market risk) and the potential inability of
counterparties or brokers to perform under the terms of
their contracts (credit risk). Market risk is generally to
be measured by the face amount of the futures positions
acquired and the volatility of the markets traded. The
credit risk from counterparty non-performance associated
with these instruments is the net unrealized gain, if any,
on these positions. The risks associated with exchange-
traded contracts are generally perceived to be less than
those associated with over-the-counter transactions, because
exchanges typically (but not universally) provide clearing-
house arrangements in which the collective credit (in some
cases limited in amount, in some cases not) of the members
of the exchange is pledged to support the financial
integrity of the exchange. In over-the-counter transac-
tions, on the other hand, traders must rely solely on the
credit of their respective individual counterparties. Mar-
gins which may be subject to loss in the event of a default,
are generally required in exchange trading, and counterpar-
ties may require margin in the over-the-counter markets.
The Managing Owner has procedures in place to control
market risk, although there can be no assurance that they
will, in fact, succeed in doing so. These procedures pri-
marily focus on (1) limiting trading to markets which the
Managing Owner believes are sufficiently liquid in respect
of the amount of trading contemplated; (2) diversifying
positions among various markets; (3) limiting the assets
committed as margin, generally within a range of 15% to 30%
of an account's Net Assets at exchange minimum margins,
(including imputed margins on forward positions) although
the amount committed to margin at any time may be substan-
tially higher; (4) prohibiting pyramiding (that is, using
unrealized profits in a particular market as margin for
additional positions in the same market); and (5) changing
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the equity utilized for trading by an account solely on a
controlled periodic basis rather than as an automatic conse-
quence of an increase in equity resulting from trading pro-
fits.
The Trust controls credit risk by dealing exclusively
with large, well capitalized financial institutions as
brokers and counterparties.
Due to the nature of the Trust's business, substan-
tially all its assets are represented by cash, United States
government obligations and short-term foreign sovereign debt
obligations, while the Trust maintains its market exposure
through open futures and forward contract positions.
Liquidity
The Trust's assets are generally held as cash or cash
equivalents which are used to margin the Trust's futures
positions and withdrawn, as necessary, to pay redemptions
and expenses. Other than potential market-imposed limita-
tions on liquidity, due, for example, to daily price fluc-
tuation limits, which are inherent in the Trust's futures
and forward trading, the Trust's assets are highly liquid
and are expected to remain so. During its operations
through December 31, 1996, the Trust experienced no meaning-
ful periods of illiquidity in any of the numerous markets
traded by the Managing Owner.
Results of Operations
Performance Summary
The Trust's success depends on the Managing Owner's
ability to recognize and capitalize on trends and other pro-
fit opportunities in different sectors of the world economy.
The Managing Owner's trading methods are confidential, so
that substantially the only information that can be fur-
nished regarding the Trust's results of operations is its
performance record, as set forth above. Unlike most operat-
ing businesses, general economic or seasonal conditions have
no direct effect on the profit potential of the Trust,
while, at the same time, its past performance is not neces-
sarily indicative of future results. Because of the specu-
lative nature of its trading, operational or economic trends
have little relevance to the Trust's results. The Managing
Owner believes, however, that there are certain market con-
ditions - for example, markets with strong price trends - in
which the Trust has a better opportunity of being profitable
than in others.
<PAGE>
1996
During 1996, the Trust's average month-end Net Assets
equaled approximately $45,000,000, and it achieved gross
trading gains of $9,141,793 or 20.40% of average month-end
Net Assets. Brokerage Fees of $3,998,675 or 8.92% of aver-
age month-end Net Assets and Profit Shares of $829,081 or
1.85% of average month-end Net Assets were paid or accrued.
Interest income (at an average rate on invested assets of
approximately 5.0% per annum) of $2,115,972 or 4.72% of
average month-end Net Assets, resulted in net income (after
deduction for administrative expenses, but without reduction
for organizational and initial offering cost reimbursement
payments) of $5,837,346 or 13.03% of average month-end Net
Assets, and a 7.69% increase in the Net Asset Value per Unit
(for redemption purposes).
January 1996 began with major gains continuing in the
energy sector, but the upward price trends in these markets
reversed sharply later in the month and resulted in a small
loss. February saw the Trust incur its worst monthly draw-
down as all six sectors traded by World Resource Portfolio
sustained losses an unusual result. In the next two
months, the Trust managed comparatively minor gains and then
in May a loss of (7.88)% was sustained, as all sectors
except energy were unprofitable. In June, a soaring energy
market produced gains which almost offset May's losses. In
July, the Trust incurred slight losses as energy trading was
unprofitable. The following five months, August through
December, produced profits in each month as major trends
occurred in the interest rate and currency markets.
1995
From the commencement of trading on September 13, 1995
through December 31, 1995, the Trust's average month-end Net
Assets equaled approximately $19,613,000, and it recognized
gross trading gains of $3,282,580 or 16.74% of average
month-end Net Assets. Brokerage Fees of $548,790 or 2.80%
of average month-end Net Assets and Profit Shares of
$460,840 or 2.35% of average month- end Net Assets were paid
or accrued. Interest income (at an average rate on invested
assets of approximately 5.1% per annum) of $303,229 or 1.55%
of average month-end Net Assets, resulted in net income
(after deduction for administrative expenses, but without
reduction for organizational and initial offering cost reim-
bursement payments) of $2,507,148 or 12.78% of average
month-end Net Assets, and a 7.23% increase in the Net Asset
Value per Unit (for redemption purposes).
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The Trust began operations in mid-September 1995 and
quickly incurred significant losses as it became fully
invested in the markets just as sustained trends in two of
its six portfolio sectors currencies and energy
reversed. Losses continued in October with a small gain in
November during generally trendless markets, causing a cumu-
lative loss in the first two and one-half months of trading
of approximately (7.5)%. In December 1995, however, the
Trust was able to achieve major profits in the energy sector
as a combination of cold weather, depleted inventories and
pipeline capacity constraints resulted in soaring natural
gas prices. Also profitable were stock index, interest rate
and agricultural trading. The total gain in December was
16.02%, resulting in a 1995 (3 month) Compound Rate of
Return of 7.23% and a December 31, 1995 Net Asset Value per
Unit of $1,072.34.
Inflation may be a significant factor in the
Partnership's profitability in light of the Trust's trading
in energy, agricultural and metals markets. However, infla-
tionary cycles can give rise to types of price movements
which can either have a favorable or an adverse impact on
the Trust's profitability.
Item 8. Financial Statements and Supplementary Data
Financial statements required by this item are included
as Exhibit 13.01 to this report.
The supplementary financial information specified by
Item 302 of Regulation S- K is not applicable.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
There were no changes in or disagreements with accoun-
tants on accounting and financial disclosure.
PART III
Item 10. Directors and Executive Officers of the Registrant
(a,b) Identification of Directors and Executive Officers
The Trust has no directors or executive officers. The
Trust is controlled and managed by the Managing Owner under
a delegation of authority by the Trust's Trustee, Wilmington
Trust Company.
Millburn Ridgefield Corporation, the Managing Owner, is
a Delaware corporation organized in May 1982 to manage dis-
cretionary accounts in futures and forward markets. It is
the corporate successor to a futures trading and advisory
organization which has been continuously managing assets in
the currency and futures markets using quantitative, sys-
tematic techniques since 1971.
<PAGE>
The principals and senior officers of Millburn Ridge-
field Corporation as of December 31, 1996 are as follows:
Harvey Beker, age 43. Mr. Beker is President, Co-
Chief Executive Officer and a Director of Millburn Ridge-
field and The Millburn Corporation, and a partner of
ShareInVest Research L.P. He received a Bachelor of Arts
degree in economics from New York University in 1974 and a
Master of Business Administration degree in finance from NYU
in 1975. From June 1975 to July 1977, Mr. Beker was
employed by Loeb Rhoades, Inc. where he developed and traded
silver arbitrage strategies. From July 1977 to June 1978,
Mr. Beker was a futures trader at Clayton Brokerage Co. of
St. Louis. Mr. Beker has been employed by The Millburn Cor-
poration since June 1978. During his tenure at Millburn, he
has been instrumental in the development of the research,
trading and operations areas. Mr. Beker became a principal
of the firm in 1982.
George E. Crapple, age 52. Mr. Crapple is Co-Chief
Executive Officer, Vice- Chairman and a Director of Millburn
Ridgefield, Vice-Chairman and a Director of The Millburn
Corporation and a partner of ShareInVest Research L.P. In
1966 he graduated with honors from the University of Wiscon-
sin where his field of concentration was economics and he
was elected to Phi Beta Kappa. In 1969 he graduated from
Harvard Law School, magna cum laude, where he was a member
of the Harvard Law Review. He was a lawyer with Sidley &
Austin, Chicago, Illinois, from 1969 until April 1, 1983, as
a partner since 1975, specializing in commodities, securi-
ties, corporate and tax law. He was first associated with
Millburn Ridgefield in 1976 and joined Millburn Ridgefield
Corporation on April 1, 1983 on a full-time basis. Mr.
Crapple is a member of the Board of Directors and a former
Chairman of the Eastern Regional Business Conduct Committee
and a former member of the Nominating Committee of the NFA,
a member of the Board of Directors and Executive Committee
of the Managed Futures Association, a member of the Finan-
cial Products Advisory Committee of the CFTC and a former
member of the Board of Directors of the Futures Industry
Association.
Mark B. Fitzsimmons, age 49. Mr. Fitzsimmons is a
Senior Vice-President of Millburn Ridgefield and The
Millburn Corporation and a partner of ShareInVest Research
L.P. His responsibilities include both marketing and
investment strategy. He graduated summa cum laude from the
University of Bridgeport, Connecticut in 1970 with a B.S. in
economics. His graduate work was done at the University of
Virginia, where he received a certificate of candidacy for a
Ph.D. in economics in 1973. He joined Millburn Ridgefield
in January 1990 from Morgan Stanley & Co. Incorporated where
he was a Principal and Manager of institutional foreign
exchange sales and was involved in strategic trading for the
firm. From 1977 to 1987 he was with Chemical Bank New York
Corporation, first as a Senior Economist in Chemical's
<PAGE>
Foreign Exchange Advisory Service and later as a Vice-
President and Manager of Chemical's Corporate Trading Group.
While at Chemical he also traded both foreign exchange and
fixed income products. From 1973 to 1977 Mr. Fitzsimmons
was employed by the Federal Reserve Bank of New York, divid-
ing his time between the International Research Department
and the Foreign Exchange Department.
Barry Goodman, age 39. Mr. Goodman is Senior Vice-
President, Director of Trading and Co-Director of Research
of Millburn Ridgefield and The Millburn Corporation and a
partner of ShareInVest Research L.P. His responsibilities
include overseeing the firm's trading operation and managing
its trading relationships, as well as the design and imple-
mentation of trading systems. He graduated magna cum laude
from Harpur College of the State University of New York in
1979 with a B.A. in economics. From 1980 through late 1982
he was a commodity trader for E. F. Hutton & Co., Inc. At
Hutton he also designed and maintained various technical
indicators and coordinated research projects pertaining to
the futures markets. He joined Millburn Ridgefield in 1982
as Assistant Director of Trading.
Dennis B. Newton, age 45. Mr. Newton is a Senior
Vice-President of Millburn Ridgefield. His primary respon-
sibilities are in administration and marketing. Prior to
joining Millburn Ridgefield in September 1991, Mr. Newton
was President of Phoenix Asset Management, Inc., a
registered commodity pool operator from April 1990 to August
1991. Prior to his employment with Phoenix, Mr. Newton was
a Director of Managed Futures with Prudential-Bache Securi-
ties Inc. from September 1987 to March 1990. Mr. Newton
joined Prudential-Bache from Heinold Asset Management, Inc.
where he was a member of the senior management team.
Heinold was a pioneer and one of the largest sponsors of
funds utilizing futures and currency forward trading.
Grant N. Smith, age 45. Mr. Smith is Senior Vice-
President and Co-Director of Research of Millburn Ridgefield
and The Millburn Corporation and a partner of ShareInVest
Research L.P. He is responsible for the design, testing and
implementation of quantitative trading strategies, as well
as for planning and overseeing the computerized decision-
support systems of the firm. He received a B.S. degree from
the Massachusetts Institute of Technology in 1974 and an
M.S. degree from M.I.T. in 1975. While at M.I.T. he held
several teaching and research positions in the computer sci-
ence field and participated in various projects relating to
database management. He joined Millburn Ridgefield in 1975.
Malcolm H. Wiener, age 61. Mr. Wiener is the founder
and non-executive Chairman of Millburn Ridgefield, The
Millburn Corporation and ShareInVest Research L.P., serves
as an adviser to these entities and is a major investor in
funds managed by Millburn Ridgefield and ShareInVest
Research L.P. He does not, however, have investment or
operational authority or responsibility for any of these
<PAGE>
entities or supervisory authority over their officers or
employees. Mr. Wiener is also a Director of Millburn Ridge-
field and The Millburn Corporation. Mr. Wiener graduated
magna cum laude from Harvard College in 1957, where his
field of concentration was Economics and he was elected to
Phi Beta Kappa. From 1957 to 1960 he served as an officer
in the United States Navy. Mr. Wiener graduated from the
Harvard Law School in 1963 and practiced law in New York
City specializing in corporate law and financial transac-
tions until 1973. Mr. Wiener began research on and the
trading of futures contracts pursuant to systematic trading
methods and money management principles in 1971 and the
management on a full time basis of private funds in this
area in 1973. He is the author of numerous papers on the
history of trade and is a member of the Council on Foreign
Relations. He serves on the boards or visiting committees
of various non-profit institutions including the Kennedy
School of Government and the Wiener Center for Social Policy
at Harvard University, the Harvard Art Museums, the Metro-
politan Museum in New York, the Museum of Fine Arts in Bos-
ton, the American School of Classical Studies in Athens and
the Council on Economic Priorities in New York.
(c) Identification of Certain Significant Employees
None.
(d) Family Relationships:
None.
(e) Business Experience:
See Item 10 (a,b) above.
(f) Involvement in Certain Legal Proceedings:
None.
(g) Promoters and Control Persons:
The Managing Owner is the sole promoter and control
person of the Trust.
Item 11. Executive Compensation
The Trust has no directors or officers. None of the
directors or officers of the Managing Owner receive "other
compensation" from the Trust. The Managing Owner makes all
trading decisions on behalf of the Trust. The Managing
Owner receives monthly brokerage commissions of 0.75 of 1%
of the Net Assets (which is reduced to 0.58 of 1% of Net
Assets for Unitholders who invest more than $1 million in
the Trust) and a quarterly profit share of 17.5% of any new
trading profit as defined.
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and
Management
(a) Security Ownership of Certain Beneficial Owners
The Trust knows of no person who owns beneficially more
than 5% of the Units. All of the Trust's managing owner
interest is held by the Managing Owner.
(b) Security Ownership of Management
Under the terms of the Trust Agreement, the Trust's
affairs are managed by the Managing Owner, which has discre-
tionary authority over the Trust's trading. The Managing
Owner's managing owner interest was valued at $1,417,312 as
of December 31, 1996, 2.52% of the Partnership's total
equity, the equivalent of 1,232.30 Units.
(c) Changes in Control:
None.
Item 13. Certain Relationships and Related Transactions
See "Item 11. Executive Compensation" and "Item 12.
Security Ownership of Certain Beneficial Owners and Manage-
ment." The Trust allocated to the Managing Owner $3,998,675
in brokerage fees and $829,081 in profit share for the year
ended December 31, 1996. The Managing Owners' managing
owner interest showed an allocation of gain of $100,972 for
the year ended December 31, 1996. The Trust is prohibited
from making any loans.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on
Form 8-K
(a)(1) Financial Statements
The following financial statements are included with
the 1996 Report of Independent Accountants, a copy of which
is filed hereto as Exhibit 13.01.
Page
Report of Independent Accountants F-1
Statements of Financial Condition F-2
December 31, 1996 and 1995
Statements of Operations for the year ended F-3
December 31, 1996 and for the period from
September 13, 1995 (commencement of trading
operations) to December 31, 1995
Statements of Changes in Trust Capital for F-4
the period from June 7, 1995 (date Trust was
organized) to December 31, 1995 and from
January 1, 1996 to December 31, 1996
Notes to Financial Statements F-6
(a)(2) Financial Statement Schedules
All Schedules are omitted for the reason that they are
not required or are not applicable because equivalent infor-
mation has been included in the financial statements or the
notes thereto.
(a)(3) Exhibits as required by Item 601 of Regulation S-K
The following exhibits are included herewith.
Designation Description
13.01 1996 Report of Independent Accountants
27.01 Financial Data Schedule
3.02 Certificate of Trust of the Trust.
10.01 Form of Subscription Agreement and Power of Attorney.
10.02 Selling Agreement among the Trust, the Managing Owner and the
Principal Selling Agents (includes a form of Additional
Selling Agent and Correspondent Selling Agent Agreement).
10.03(a) Customer Agreement among the Trust, the Managing Owner and
a Principal Selling Agent in its capacity as a futures
commission merchant.
10.03(b) Customer Agreement among the Trust, the Managing Owner and
a Principal Selling Agent in its capacity as a futures
commission merchant.
10.04 Escrow Agreement between the Trust and Chemical Bank, N.A.
3.01 Amended and Restated Declaration of Trust and Trust Agreement
(b) Reports on Form 8-K
No report on Form 8-K was filed by the Partnership during
the quarter ended December 31, 1996.
<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 under-
signed, thereunto duly authorized, in the City of New York
and State of New York on the 27th day of March, 1997.
THE MILLBURN WORLD RESOURCE TRUST
By: Millburn Ridgefield Corporation,
Managing Owner
By /s/ Harvey Beker
Harvey Beker
President
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 Managing Owner
of the Registrant in the capacities and on the date indi-
cated.
Signature Title with General Partner Date
Malcolm H. Wiener Chairman and Director March __, 1997
/s/ Harvey Beker President, Co-Chief March 27, 1997
Harvey Beker Executive Officer and
Director (Principal Financial
and Accounting Officer
/s/ George E. Crapple Vice-Chairman, Co-Chief March 27, 1997
George E. Crapple Executive Officer and
Director (Principal Executive
Officer)
(Being the principal executive officer, the principal financial and accounting
officer, and a majority of the directors of Millburn Ridgefield Corporation)
Millburn Ridgefield Corporation Managing Owner March 27, 1997
of Registrant
By /s/ Harvey Beker
Harvey Beker
President
<PAGE>
Exhibit 13.01
REPORT OF INDEPENDENT ACCOUNTANTS
To the Unitholders of The Millburn World Resource Trust:
We have audited the accompanying statements of
financial condition of THE MILLBURN WORLD RESOURCE TRUST
as of December 31, 1996 and 1995, the related statements
of operations for the year ended December 31, 1996 and
the period from September 13, 1995 (commencement of trad-
ing operations) to December 31, 1995, and the statements
of changes in Trust capital for the year ended December
31, 1996 and the period from June 7, 1995 (date Trust was
organized) to December 31, 1995. These financial state-
ments are the responsibility of management of the Manag-
ing Owner. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and dis-
closures in the financial statements. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the
financial position of The Millburn World Resource Trust
as of December 31, 1996 and 1995 and the results of its
operations for the year ended December 31, 1996 and the
period from June 7, 1995 to December 31, 1995, in confor-
mity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
January 30, 1997
F-1
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
STATEMENTS OF FINANCIAL CONDITION
As of December 31, 1996 and 1995
ASSETS:
December 31, 1996 December 31, 1995
Equity in trading accounts:
Investments in U.S. Treasury bills $30,256,310 $14,165,755
at value (amortized cost $30,256,310
at December 31, 1996 and $14,165,755
at December 31, 1995) (Note 3)
Investments in foreign government - 289,952
obligations at value (amortized cost
$289,952, December 31, 1995) (Note 3)
Options owned, at market value (cost 922,536 289,511
$685,996 at December 31, 1996 and
$176,684 at December 31, 1995)
Unrealized appreciation on open contracts 3,779,038 3,109,435
Cash 5,855,321 1,790,700
_________________ _________________
40,813,205 19,645,353
Money market fund 2,447,271 4,090,183
Investment in U.S. Treasury bills at 15,656,090 3,442,128
value (amortized cost $15,656,090 at
December 31, 1996 and $3,442,128 at
December 31, 1995) (Note 3)
_________________ _________________
Total assets $58,916,566 $27,177,664
LIABILITIES AND TRUST CAPITAL:
Unrealized depreciation on open $ 573,797 $ 393,395
currency contracts
Due to broker for U.S. Treasury 293,705
bills purchased
Due to Managing Owner (Note 4) 252,264 554,791
Accounts payable and accrued expenses 52,344 59,305
Redemptions payable to Unitholders, 1,260,914 67,488
net (Note 10)
Accrued Brokerage Fees (Note 5) 343,224 170,408
Total liabilities 2,776,248 1,245,387
Trust capital (Notes 5, 10 and 11):
Managing Owner interest 1,417,312 730,387
Unitholders (47,579.531 and 23,986.087 54,723,006 25,201,890
Units of Beneficial Interest outstand-
ing in 1996 and 1995, respectively)
Total Trust capital 56,140,318 25,932,277
Total liabilities and Trust capital $58,916,566 $27,177,664
See accompanying notes to financial statements.
F-2
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
STATEMENTS OF OPERATIONS
For the year ended December 31, 1996 and the period from
September 13, 1995 (Commencement of trading operations)
to December 31, 1995
For the Year For the Period
ended from September 1,
December 31, 1995 (commencement
1996 of trading opera-
tions) to December
31, 1995
Income (Note 3):
Net gains on trading of futures,
forward and option contracts:
Realized gains (losses)
Futures and forwards $ 7,778,511 $ 551,797
Options 750,368 (98,084)
Change in unrealized appreciation:
Futures and forwards 489,201 2,716,040
Options 123,713 112,827
______________ ______________
9,141,793 3,282,580
Less, Brokerage Fees (Note 5) 3,998,675 548,790
Net realized and unrealized gains 5,143,118 2,733,790
(losses) on trading of futures,
forward and option contracts
Interest income 2,115,972 303,229
Foreign exchange loss (72,910) (9,539)
Total income 7,186,180 3,027,480
Expenses (Note 3):
Profit Share (Note 5) 829,081 460,840
Administrative expenses 519,753 59,492
Total expenses 1,348,834 520,332
Net income $5,837,346 $2,507,148
Net income per Unit of Beneficial $ 99.45 $ 75.75
Interest (Note 11)
See accompanying notes to financial statements.
F-3
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
STATEMENTS OF CHANGES IN TRUST CAPITAL
For the Periods from June 7, 1995 (date Trust was organ-
ized) to December 31, 1995 and from January 1, 1996 to
December 31, 1996
Unitholders New Profits Managing Total
Memo Account Owner
Initial capital $ 1,600 $ $ 400 $ 2,000
contributions
Proceeds from 15,141,664 155,005 15,296,669
initial offering
of 15,141.664 Units
of Beneficial Inter-
est and Managing
Owner contribution
Initial capital (1,600)
contribution
withdrawn
Opening Trust 15,141,664 155,405 15,297,069
capital for
operations
Proceeds from sale 8,267,366 85,000 8,352,366
of 8,926.044 Units
of Beneficial Inter-
est and Managing
Owner contributions
Organizational and (593,674) (6,326) (600,000)
initial offering
costs
Net income 2,471,680 35,468 2,507,148
Redemptions (81.621 (85,146) (85,146)
Units of Beneficial
Interest)
Managing Owner's $ 460,840 460,840
Profit Share
Transfer from New (460,840) 460,840
Profits Memo Account
to Managing Owner
Trust capital at 25,201,890 730,387 25,932,277
December 31, 1995
F-4
<PAGE>
Proceeds from sale 31,099,099 217,000 31,316,099
of 30,447.310 Units
of Beneficial
Interest
Net income 5,735,662 712 100,972 5,837,346
Redemptions (7,313,645) (460,840) (7,774,485)
(6,951.474 Units
of Beneficial
Interest)
Limited Partnership
Units (97.608)
allocated
Managing Owner's 829,081 829,081
Profit Share
Transfer from New (829,793) 829,793
Profits Memo Account
to Managing Owner
____________ __________ ___________ ____________
Trust capital at $54,723,006 $1,417,312 $56,140,318
December 31, 1996
See accompanying notes to financial statements.
F-5
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization
The Millburn World Resource Trust (the "Trust") was
organized on June 7, 1995 under the Delaware Business
Trust Act. At such time, the only capital contributed to
the Trust was the original capital contribution of $400
by Millburn Ridgefield Corporation (the "Managing Owner")
and $1,600 by the initial Unitholder. The Managing Owner
has agreed to make additional capital contributions as
Managing Owner, subject to certain possible exceptions,
in order to maintain its capital account at not less than
1% of the total capital accounts of the Trust. The
Managing Owner and the holders of the Units of Beneficial
Interest ("Units") issued by the Trust will share in any
profits and losses of the Trust in proportion to the per-
centage interest owned by each, before brokerage commis-
sions and profit share allocations.
The proceeds from the initial offering of Units were
turned over to the Trust on September 13, 1995, and the
Trust commenced trading operations. The Trust is engaged
in speculative trading in the futures, options and for-
ward markets.
2. The Offering of the Units
The Trust offered Units to the public initially at
the price of $1,000 per Unit, and, after the initial sale
of the Units, at the Net Asset Value per Unit (as defined
in the Declaration of Trust and Trust Agreement) as of
the first business day of each calendar month. Selling
commissions are paid by the Managing Owner. These sel-
ling commissions will equal 5% (3% in the case of Unit-
holders who invest $1,000,000 or more) of the subscrip-
tion price (Net Asset Value) per Unit after trading
begins.
The proceeds from the subscriptions for Units are held in
escrow and invested in interest-bearing obligations.
Subscribers are credited, when the Units are issued, with
additional Units in an amount corresponding to the
interest earned on their subscriptions while held in
escrow. If a subscription is rejected, the subscription
funds plus all interest earned thereon while held in
escrow are promptly returned to the investor.
Continued
F-6
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
3. Accounting Policies
a. Investment
Open options, futures and forward contracts are
valued at market value. Realized gain (loss) and changes
in unrealized appreciation (depreciation) on futures,
forward and option contracts are recognized in the
periods in which the contracts are closed or the changes
occur, and are included in net gains (losses) on trading
of futures, forward and option contracts.
Investments in U.S. and foreign government obligations
are valued at cost plus amortized discount which approxi-
mates market. Amortization of discount is reflected as
interest income.
b. Foreign Currency Translation
Assets and liabilities denominated in foreign
currencies are translated at quoted prices of such
currencies. Purchases and sales of investments are
translated at the exchange rate prevailing when such
transactions occurred.
c. Income Taxes
Income taxes have not been provided, as each Unit-
holder is individually liable for the taxes, if any, on
his share of the Trust's income and expenses.
d. Estimates
The preparation of financial statements in confor-
mity with generally accepted accounting principles
requires management to make estimates and assumptions
that affect the reported amounts.
4. Organizational and Initial Offering Costs
Organizational and initial offering costs (exclusive
of selling commissions), estimated at $600,000, were
advanced by the Managing Owner and are being reimbursed
by the Trust in 24 equal monthly installments, provided
that the monthly installments received during any fiscal
year shall not in the aggregate exceed 0.167 of 1% (a 2%
annual rate) of the month-end Net Asset Value of the
Trust as of each of the months elapsed during such fiscal
Continued
F-7
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
year including the month of determination. The 24-month
period shall be extended as necessary to complete the
reimbursement. The total costs were deducted from Trust
capital upon commencement of trading, and reduce the
redemption value per Unit to the extent that the reim-
bursement payments have been made to the Managing Owner.
The Managing Owner also pays, from its own funds, selling
commissions on all sales of Units.
5. Trust Agreement
The Trust Agreement provides that the Managing Owner
shall control, conduct and manage the business of the
Trust, and may make all trading decisions.
The Trust pays brokerage fees to the Managing Owner
at the annual rate of 9.0% of the Trust's average month-
end Net Assets of Unitholders' interests (prior to reduc-
tion for accrued brokerage fees or Profit Share). The
Managing Owner retains the right to charge less than the
annual brokerage rate of 9% to those subscribers who
either invest $1,000,000 or more in the Units or sub-
scribe without incurring the selling commission paid by
the Managing Owner. The Managing Owner, not the Trust,
will pay all routine costs of executing and clearing the
Trust's futures and options trades, including brokerage
commissions payable to the clearing brokers.
Profit Share equal to 17.5% of any New Trading Pro-
fits (as defined) in excess of the highest cumulative
level of Trading Profit as of any previous calendar
quarter-end is added to the New Profits Memo Account. A
transfer from such account to the Managing Owner's capi-
tal account is made to the extent taxable capital gains
are allocated to the Managing Owner.
The Trust pays its legal, accounting, auditing,
printing, postage and similar administrative expenses
(including the Trustee's fees, the charges of an outside
accounting services agency and the expenses of updating
the Prospectus), as well as extraordinary costs.
6. Trading Activities
All of the derivatives owned by the Trust, including
options, futures and forwards, are held for trading pur-
poses. The results of the Trust's trading activity are
shown in the statement of operations. The fair value of
Continued
F-8
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
the derivative financial instruments, at December 31,
1996 and 1995, respectively, was $3,441,781 and
$2,828,867 and the average fair value during the periods
then ended (calculated on a monthly basis), approximated
$3,351,056 and $416,835.
The Trust conducts its trading activities with vari-
ous brokers acting either as a broker or counterparty to
various transactions. At December 31, 1996 and 1995,
respectively, the cash and treasury bills, aggregating
$36,111,631, and $15,956,455, included in the Trust's
equity trading accounts are held by such brokers in
segregated accounts as required by Commodity Futures
Trading Commission regulations.
7. Derivative Instruments
The Trust is party to derivative instruments in the
normal course of its business. These financial instru-
ments 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 specific terms at speci-
fied future dates. These instruments may be traded on an
exchange or over-the- counter. Exchange traded instru-
ments are standardized and include futures and certain
options. Each of these instruments is subject to various
risks similar to those related to the underlying finan-
cial instruments including market and credit risk.
Market risk is the potential change in the value of
the instruments traded by the Trust due to market
changes, including interest and foreign exchange rate
movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatil-
ity and liquidity in the markets in which the related
underlying assets are traded.
Credit risk is the possibility that a loss may occur
due to the failure of a counterparty to perform according
to the terms of a contract. Credit risk is normally
reduced to the extent that an exchange or clearing organ-
ization acts as a counterparty to futures or options
transactions, since typically the collective credit of
the members of the exchange is pledged to support the
financial integrity of the exchange. In the case of
over-the-counter transactions, the Trust must rely solely
Continued
F-9
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
on the credit of the individual counterparties. The
Trust's risk of loss in the event of counterparty default
is typically limited to the amounts recognized in the
statement of financial condition, not to the contract or
notional amounts of the instruments.
8. Open Derivative Instruments (Contracts)
at December 31, 1996 and 1995
<TABLE>
<CAPTION>
December 31, 1996 December 31, 1995
Notional or Contractual Notional or Contractual
Amount of Commitments Amount of Commitment
to Purchase to Sell to Purchase to Sell
<S> <C> <C> <C> <C>
Financial instruments $255,988,000 $ 17,461,000 $ 44,221,000 $ 44,256,000
Stock indices 12,346,000 17,737,000 12,001,000
Currencies* 69,560,000 90,704,000 29,393,000 46,955,000
Energy 13,082,000 17,467,000
Agricultural 20,597,000 18,231,000 6,880,000 10,566,000
Metals 7,935,000 34,480,000 17,980,000
____________ ____________ ____________ ____________
$376,508,000 $178,613,000 $109,962,000 $119,757,000
<FN>
* Currencies include offsetting commitments to purchase
and sell the same currency on the same date in the
future. These commitments are economically offsetting
but are not, as a technical matter, offset in the forward
market until the settlement date.
</TABLE>
The notional or contractual amounts of these derivative
instruments, while not recorded in the financial state-
ments, reflect the extent of the Trust's involvement in
these instruments. All of these instruments mature
within 90 days of the balance sheet date.
Continued
F-10
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
Notional or Contractual Unrealized Gain (Loss)
Amount of Commitments
to Purchase to Sell Gross Net
<S> <C> <C> <C> <C>
December 31, 1996
Exchange traded $306,948,000 $ 87,909,000 $4,451,695 $2,820,134
Non-exchange traded 69,560,000 90,704,000 876,180 621,647
____________ ____________ __________ ____________
$376,508,000 $178,613,000 $5,327,875 $3,441,781**
<FN>
** Includes net unrealized gains on exchange traded
options of $236,540.
</TABLE>
<TABLE>
<CAPTION>
Notional or Contractual Unrealized Gain (Loss)
Amount of Commitments
to Purchase to Sell Gross Net
<S> <C> <C> <C> <C>
December 31, 1995
Exchange traded $ 80,569,000 $ 72,802,000 $3,180,313 $2,954,930
Non-exchange traded 29,393,000 46,955,000 267,332 (126,063)
____________ ____________ __________ _____________
$109,962,000 $119,757,000 $3,447,645 $2,828,867***
<FN>
*** Includes net unrealized gains on exchange traded
options of $112,827.
</TABLE>
9. Termination
The Trust will terminate on December 31, 2025 or at
an earlier date if certain conditions occur as defined in
the Declaration of Trust and Trust Agreement.
10. Redemptions
Units may be redeemed, at the option of any Unit-
holder, at Net Asset Value (as defined) as of the close
of business on the last business day of any calendar
month on ten business days' written notice to the Manag-
ing Owner. Persons who redeem Units at or prior to the
end of the first and second successive six-month periods
Continued
F-11
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS (continued)
after such Units are sold will be assessed redemption
charges of 4% and 3%, respectively (3% and 2%, respec-
tively, in the case of subscriptions of $1,000,000 or
more), of their redeemed Units' Net Asset Value as of the
date of redemption. All redemption charges are paid to
the Managing Owner.
11. Net Asset Value per Unit
Changes in net asset value per Unit during the
year-ended December 31, 1996 and the period from Sep-
tember 13, 1995 to December 31, 1995 were as follows:
Year Ended Period Ended
December 31, December 31,
1996 1995
Net realized and unrealized $ 87.62 $ 83.52
gains on futures, forwards and
options
Interest income 36.05 14.46
Foreign exchange loss (1.24) (0.38)
Profit Share expense (14.12) (19.16)
Administrative expenses (8.86) (2.69)
____________ ____________
Net income per unit 99.45 75.75
Organization and offering costs 0.00 (25.06)
____________ ____________
Increase for the period 99.45 50.69
Net asset value per Unit, 1,050.69 1,000.00
beginning of period
Net asset value per Unit, end $1,150.14 $1,050.69
of period
Redemption value per Unit $1,154.81 $1,072.34
(before redemption charge)
F-12
<PAGE>
Exhibit 27.01
FINANCIAL DATA SCHEDULE
THE MILLBURN WORLD RESOURCE TRUST
JANUARY 1, 1996 - DECEMBER 31, 1996
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM STATEMENTS OF FINANCIAL CONDITION, STATE-
MENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN TRUST
CAPITAL AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
Item Description Dollar Amount
_________________________________________________________ _____________
Cash and cash items 8,302,592
Marketable securities 45,912,400
Notes and accounts receivable-trade 0
Allowances for doubtful accounts 0
Inventory 0
Total current assets 58,916,566
Property, plant and equipment 0
Accumulated depreciation 0
Total assets 58,916,566
Total current liabilities 2,776,248
Bonds, mortgages and similar debt 0
Preferred stock -- mandatory redemption 0
Preferred stock -- no mandatory redemption 0
Common stock 0
Other stockholders' equity 56,140,318
Total liabilities and stockholders' equity 58,916,566
Net sales of tangible products 0
Total revenues 11,184,855
Cost of tangible goods sold 0
Total costs and expenses applicable to sales and revenues 4,071,585
Other costs and expenses 1,348,834
Provision for doubtful accounts and notes 0
Interest and amortization of debt discount 0
Income before taxes and other items 5,837,346
Income tax expense 0
Income/loss continuing operations 0
Discontinued operations 0
Extraordinary items 0
Cumulative effect - changes in accounting principles 0
Net income or loss 5,837,346
Earnings per share - primary 99.45
Earnings per share - fully diluted 99.45
FDS-1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATEMENTS
OF FINANCIAL CONDITION, OPERATIONS, AND CHANGES IN TRUST CAPITAL AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 8,302,592
<SECURITIES> 45,912,400
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 58,916,566
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 58,916,566
<CURRENT-LIABILITIES> 2,776,248
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 56,140,318
<TOTAL-LIABILITY-AND-EQUITY> 58,916,566
<SALES> 0
<TOTAL-REVENUES> 11,184,855
<CGS> 0
<TOTAL-COSTS> 4,071,585
<OTHER-EXPENSES> 1,348,834
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,837,346
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,837,346
<EPS-PRIMARY> 99.45
<EPS-DILUTED> 99.45
</TABLE>
