<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended: June 30, 1998
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 of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
411 West Putnam Avenue
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant to Section 12(b) of the Act: None
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 [ ]
Aggregate market value of the voting and non-voting common equity held by
non-affiliates: $74,415,107
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN WORLD RESOURCE TRUST
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
30-Jun-98 31-Dec-97
Assets: ------------- -------------
<S> <C> <C>
Investment in U.S. Treasury obligations
- at value (amortized cost $63,357,162
at June 30, 1998) 63,357,162 57,499,754
Money market mutual funds 5,240,117 9,944,556
Options owned, at market value (cost
$343,085 at June 30, 1998) 447,562 559,110
Unrealized appreciation on open contracts 4,012,479 4,753,326
Cash 5,887,260 2,105,808
------------- -------------
Total Assets $ 78,944,580 $ 74,862,554
============= =============
Liabilities & Unitholders' Capital:
Unrealized depreciation on
open currency contracts 1,781,516 -
Due to Managing Owner - -
Accounts payable and accrued expenses 48,377 73,925
Redemptions payable to unit holders, net 1,430,481 773,980
Accrued brokerage commissions 450,535 443,746
------------- -------------
Total Liabilities 3,710,909 1,291,651
Trust Capital:
Managing Owner interest 818,564 776,209
Unitholders interest (Units of Beneficial
Interest outstanding - 61,952.133 at
June 30, 1998) 74,415,107 72,794,694
------------- -------------
Total Trust Capital 75,233,671 73,570,903
------------- -------------
Total Liabilities and Trust Capital $ 78,944,580 $ 74,862,554
============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
Statements of Operations
For the three months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 911,040 (437,952)
Change in Unrealized Gain(Loss)
on Open Contracts 1,130,803 (1,148,255)
Interest Income 945,779 891,654
Foreign Exchange Gain(Loss) (14,558) 199,287
------------ ------------
$ 2,973,064 $ (495,266)
Expenses:
Brokerage Commissions 1,624,727 1,523,428
17.5% Profit Share (Accrued) - -
Administrative 126,967 171,419
Organizational and Offering Expenses - 75,000
------------ ------------
$ 1,751,694 $ 1,769,847
============ ============
Net Income(Loss) $ 1,221,370 $(2,265,113)
Net Income(Loss) allocated to
Managing Owner $ 26,917 $ (11,045)
Net Income(Loss) allocated to
Unitholders $ 1,194,453 $(2,254,068)
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 17.82 $ (42.63)
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
Statements of Operations
For the six months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 5,433,229 6,230,094
Change in Unrealized Gain(Loss)
on Open Contracts (2,580,940) (2,275,584)
Interest Income 1,938,565 1,651,869
Foreign Exchange Gain(Loss) 1,597 194,855
------------ ------------
$ 4,792,451 $ 5,801,234
Expenses:
Brokerage Commissions 3,244,431 2,946,519
17.5% Profit Share (Accrued) - 695,667
Administrative 186,371 255,542
Organizational and Offering Expenses - 150,000
------------ ------------
$ 3,430,802 $ 4,047,728
============ ============
Net Income(Loss) $ 1,361,649 $ 1,753,506
Net Income(Loss) allocated to
Managing Owner $ 42,355 $ 50,311
Net Income(Loss) allocated to
Unitholders $ 1,319,294 $ 1,703,195
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 18.74 $ 37.32
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
Statements of Trust Capital
For the six months ended June 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Unit Managing
Holders Owner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1997
(61,563.868 Units) 72,794,694 776,209 73,570,903
Addition of 6,502.230 Units 7,439,160 - 7,439,160
Redemption of 6,113.965 Units (7,138,041) - (7,138,041)
Net Gain(Loss) in Trust Equity 1,319,294 42,355 1,361,649
------------ ------------ ------------
Trust Equity at June 30, 1998 74,415,107 818,564 75,233,671
(61,952.133 Units) ============ ============ ============
Redemption Value per Unit
at June 30, 1998 1,201.17
============
</TABLE>
Statements of Cash Flows
For the six months ended June 30, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 1,361,649 1,753,506
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease(Increase) in Equity in
Futures and Forward Trading Accounts (3,223,496) (7,869,453)
Increase(Decrease) in Accrued Expenses (18,759) (21,104)
------------ ------------
Net Cash Flows from Operating Activities (1,880,606) (6,137,051)
Cash Flows from Financing Activities:
Subscription of Unitholder and Managing
Owner Units and Unit Equivalents 957,619 11,945,750
------------ ------------
Net Change in Cash (922,987) 5,808,699
Cash - Beginning of Year 12,050,364 8,302,592
------------ ------------
Cash - End of Period 11,127,377 14,111,291
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST NOTES TO FORM 10-Q FINANCIAL STATEMENTS
These interim consolidated financial statements do not include all the
disclosures contained in the annual financial statements. These interim
statements have been prepared by management without audit by Independent
Public Accountants. The consolidated statements of financial condition has
been derived from the audited financial statements as of December 31, 1997.
The consolidated results of operation as displayed, should not be considered
indicative of results to be expected for the entire year.
Management discussion and analysis of the consolidated financial statements
for the six months ended June 30, 1998:
<TABLE>
<CAPTION>
30-Jun-98 31-Dec-97
------------- -------------
<S> <C> <C>
Ending Equity $ 75,233,671 $ 73,570,903
</TABLE>
The Trust's net assets increased 2.26% in the first half of 1998. This is
the net result of subscriptions, redemptions, and net profit on trading.
Trading conditions deteriorated during the quarter. Hence, January profits
were almost entirely offset by subsequent losses in February and March.
Energy trading was very profitable for the quarter largely because declining
energy prices benefited short positions in crude oil and heating oil. These
gains were offset, however, by losses registered in trading stock index
futures and soft commodities, especially cotton. Declining interest rates
produced profits from long interest rate futures positions in January and
February, but produced gains in March due primarily to the weakness of the
yen vis-a-vis the U.S. dollar, Canadian dollar, and German mark.
Trading conditions, while volatile, improved during the second quarter of
1998. Consequently, profits during May and June outweighed losses registered
in April. A down-trend in sugar and an up-trend in cotton produced good
profits from the soft commodities sector. Also, a short position in aluminum
benefited from a pronounced decline in aluminum prices. Declines in energy
prices generated good profits from short positions in heating oil and crude
oil. Finally, stock index futures were profitable largely due to a short
position in the Hang Seng Index which was profitable as turmoil in the Far
East continued. Meanwhile, interest rate trading was unprofitable as
non-directional volatility produced losses in Australian, Canadian, and U.S.
dollar based interest rate futures. Currency trading was also somewhat
unprofitable.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of New York
and State of New York on the 12th day of August, 1998.
THE MILLBURN WORLD RESOURCE TRUST
By: Millburn Ridgefield Corporation,
Managing Owner
By /s/ Tod A. Tanis August 12, 1998
Tod A. Tanis
Vice-President
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 11,127,377
<SECURITIES> 61,575,646
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 78,944,580
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 78,944,580
<CURRENT-LIABILITIES> 3,710,909
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 75,233,671
<TOTAL-LIABILITY-AND-EQUITY> 78,944,580
<SALES> 0
<TOTAL-REVENUES> 4,792,451
<CGS> 0
<TOTAL-COSTS> 3,244,431
<OTHER-EXPENSES> 186,371
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,361,649
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,361,649
<EPS-PRIMARY> 18.74
<EPS-DILUTED> 18.74
</TABLE>
