<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 September 28, 2001
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: 0-25785
WORLD MONITOR TRUST--SERIES A
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(Exact name of Registrant as specified in its charter)
Delaware 13-3985040
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(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
One New York Plaza, 13th Floor, New York, New York
10292
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
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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 __
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
WORLD MONITOR TRUST--SERIES A
(a Delaware Business Trust)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<Table>
<Caption>
September 28, December 31,
2001 2000
- ----------------------------------------------------------------------------------------------------
ASSETS
Cash $ 5,245,674 $8,755,205
Net unrealized gain on open futures contracts 915,197 531,296
Accrued interest receivable 675 --
------------- ------------
Total assets $ 6,161,546 $9,286,501
------------- ------------
------------- ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Redemptions payable $ 58,650 $ 3,042
Commissions payable 33,144 64,688
Management fees payable 4,463 9,311
------------- ------------
Total liabilities 96,257 77,041
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Commitments
Trust capital
Limited interests (76,660.837 and 120,332.109 interests
outstanding) 5,995,293 9,115,823
General interests (895 and 1,236 interests outstanding) 69,996 93,637
------------- ------------
Total trust capital 6,065,289 9,209,460
------------- ------------
Total liabilities and trust capital $ 6,161,546 $9,286,501
------------- ------------
------------- ------------
Net asset value per limited and general interest ('Interests') $ 78.21 $ 75.76
------------- ------------
------------- ------------
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<Caption>
The accompanying notes are an integral part of these statements.
</Table>
2
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WORLD MONITOR TRUST--SERIES A
(a Delaware Business Trust)
STATEMENTS OF OPERATIONS
(Unaudited)
<Table>
<Caption>
For the period from For the period from For the period from For the period from
January 1, 2001 to January 1, 2000 to June 30, 2001 to July 1, 2000 to
September 28, 2001 September 29, 2000 September 28, 2001 September 29, 2000
- ------------------------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on
commodity transactions $ 127,759 $(4,815,778) $(217,272) $ (612,477)
Change in net unrealized
gain/loss on open commodity
positions 383,901 1,323,310 739,704 (306,270)
Interest income 262,181 958,425 50,439 305,593
----------- --------------------- ----------- ---------------------
773,841 (2,534,043) 572,871 (613,154)
----------- --------------------- ----------- ---------------------
EXPENSES
Commissions 407,958 1,172,636 107,171 351,873
Management fees 52,561 201,623 13,809 45,415
----------- --------------------- ----------- ---------------------
460,519 1,374,259 120,980 397,288
----------- --------------------- ----------- ---------------------
Net income (loss) $ 313,322 $(3,908,302) $ 451,891 $(1,010,442)
----------- --------------------- ----------- ---------------------
----------- --------------------- ----------- ---------------------
ALLOCATION OF NET INCOME (LOSS)
Limited interests $ 310,552 $(3,869,174) $ 446,487 $(1,000,114)
----------- --------------------- ----------- ---------------------
----------- --------------------- ----------- ---------------------
General interests $ 2,770 $ (39,128) $ 5,404 $ (10,328)
----------- --------------------- ----------- ---------------------
----------- --------------------- ----------- ---------------------
NET INCOME (LOSS) PER WEIGHTED
AVERAGE LIMITED AND GENERAL
INTEREST
Net income (loss) per weighted
average limited and general
interest $ 3.29 $ (13.42) $ 5.62 $ (3.74)
----------- --------------------- ----------- ---------------------
----------- --------------------- ----------- ---------------------
Weighted average number of
limited and general interests
outstanding 95,272 291,288 80,376 270,467
----------- --------------------- ----------- ---------------------
----------- --------------------- ----------- ---------------------
- ------------------------------------------------------------------------------------------------------------------------
</Table>
STATEMENT OF CHANGES IN TRUST CAPITAL
(Unaudited)
<Table>
<Caption>
LIMITED GENERAL
INTERESTS INTERESTS INTERESTS TOTAL
- -----------------------------------------------------------------------------------------------------
Trust capital--December 31, 2000 121,568.109 $9,115,823 $ 93,637 $9,209,460
Net income 310,552 2,770 313,322
Redemptions (44,012.272) (3,431,082) (26,411 ) (3,457,493)
----------- ---------- --------- ----------
Trust capital--September 28, 2001 77,555.837 $5,995,293 $ 69,996 $6,065,289
----------- ---------- --------- ----------
----------- ---------- --------- ----------
- -----------------------------------------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these statements.
3
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WORLD MONITOR TRUST--SERIES A
(a Delaware Business Trust)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 28, 2001
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of Prudential Securities Futures Management Inc. (the 'Managing Owner'), the
financial statements contain all adjustments (consisting of only normal
recurring adjustments) necessary to state fairly the financial position of World
Monitor Trust--Series A ('Series A') as of September 28, 2001 and the results of
its operations for the periods from January 1, 2001 to September 28, 2001
('Year-To-Date 2001'), January 1, 2000 to September 29, 2000 ('Year-To-Date
2000'), June 30, 2001 to September 28, 2001 ('Third Quarter 2001') and July 1,
2000 to September 29, 2000 ('Third Quarter 2000'). However, the operating
results for these 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 accounting principles generally
accepted in the United States of America have been omitted. It is suggested that
these financial statements be read in conjunction with the financial statements
and notes thereto included in Series A's Annual Report on Form 10-K filed with
the Securities and Exchange Commission for the year ended December 31, 2000.
B. Related Parties
The Managing Owner of Series A is a wholly-owned subsidiary of Prudential
Securities Incorporated ('PSI'), which, in turn, is a wholly-owned subsidiary of
Prudential Securities Group Inc. The Managing Owner or its affiliates perform
services for Series A, 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. Except for costs related to brokerage services, PSI or its affiliates
pay the costs of these services in addition to Series A's routine operational,
administrative, legal and auditing costs.
The costs charged to Series A for brokerage services for Year-To-Date 2001,
Year-To-Date 2000, Third Quarter 2001 and Third Quarter 2000 were $407,958,
$1,172,636, $107,171 and $351,873, respectively.
Series A's assets are maintained either in trading or cash accounts with PSI,
Series A's commodity broker, or, for margin purposes, with the various exchanges
on which Series A is permitted to trade. PSI credits Series A monthly with 100%
of the interest it earns on the average net assets in Series A's accounts.
Series A, acting through its trading advisor, may execute over-the-counter,
spot, forward and/or option foreign exchange transactions with PSI. PSI then
engages in back-to-back trading with an affiliate, Prudential-Bache Global
Markets Inc. ('PBGM'). PBGM attempts to earn a profit on such transactions. PBGM
keeps its prices on foreign currency competitive with other interbank currency
trading desks. All over-the-counter currency transactions are conducted between
PSI and Series A pursuant to a line of credit. PSI may require that collateral
be posted against the marked-to-market position of Series A.
As of September 28, 2001, a non-U.S. affiliate of the Managing Owner owns
101.112 limited interests of Series A.
C. Derivative Instruments and Associated Risks
Series A is exposed to various types of risks associated with the derivative
instruments and related markets in which it invests. These risks include, but
are not limited to, risk of loss from fluctuations in the value of derivative
instruments held (market risk) and the inability of counterparties to perform
under the terms of Series A's investment activities (credit risk).
Market Risk
Trading in futures and forward (including foreign exchange) contracts
involves entering into contractual commitments to purchase or sell a particular
commodity at a specified date and price. The gross or face amount of the
contracts, which is typically many times that of Series A's net assets being
traded, significantly exceeds Series A's future cash requirements since Series A
intends to close out its open positions
4
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prior to settlement. As a result, Series A is generally subject only to the risk
of loss arising from the change in the value of the contracts. As such, Series A
considers the 'fair value' of its derivative instruments to be the net
unrealized gain or loss on the contracts. The market risk associated with Series
A's commitments to purchase commodities is limited to the gross or face amount
of the contract held. However, when Series A enters into a contractual
commitment to sell commodities, it must make delivery of the underlying
commodity at the contract price and then repurchase the contract at prevailing
market prices. Since the repurchase price to which a commodity can rise is
unlimited, entering into commitments to sell commodities exposes Series A to
unlimited risk.
Market risk is influenced by a wide variety of factors, including government
programs and policies, political and economic events, the level and volatility
of interest rates, foreign currency exchange rates, the diversification effects
among the derivative instruments Series A holds and the liquidity and inherent
volatility of the markets in which Series A trades.
Credit Risk
When entering into futures or forward contracts, Series A is exposed to
credit risk that the counterparty to the contract will not meet its obligations.
The counterparty for futures contracts traded on United States and most foreign
futures exchanges is the clearinghouse associated with such exchanges. In
general, clearinghouses are backed by their corporate members who are required
to share any financial burden resulting from the non-performance by one of their
members and, as such, should significantly reduce this credit risk. In cases
where the clearinghouse is not backed by the clearing members (i.e., some
foreign exchanges), it is normally backed by a consortium of banks or other
financial institutions. On the other hand, if Series A enters into forward
transactions, the sole counterparty is PSI, Series A's commodity broker. Series
A has entered into a master netting agreement with PSI and, as a result, when
applicable, presents unrealized gains and losses on open forward positions as a
net amount in the statements of financial condition. The amount at risk
associated with counterparty non-performance of all of Series A's contracts is
the net unrealized gain included in the statements of financial condition. There
can be no assurance that any counterparty, clearing member or clearinghouse will
meet its obligations to Series A.
The Managing Owner attempts to minimize both credit and market risks by
requiring Series A and its trading advisor to abide by various trading
limitations and policies. The Managing Owner monitors compliance with these
trading limitations and policies, which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties; 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.
Additionally, pursuant to the advisory agreement among Series A, the Managing
Owner and the trading advisor, Series A shall automatically terminate the
trading advisor if the net asset value allocated to the trading advisor declines
by 33 1/3% from the value at the beginning of any year or since the effective
date (i.e., March 2000) of the advisory agreement. Furthermore, the Second
Amended and Restated Declaration of Trust and Trust Agreement provides that
Series A will liquidate its positions, and eventually dissolve, if Series A
experiences a decline in net asset value of 50% from the value at the beginning
of any year or since the commencement of trading activities. In each case, the
decline in net asset value is after giving effect for distributions,
contributions and redemptions. The Managing Owner may impose additional
restrictions (through modifications of trading limitations and policies) upon
the trading activities of the trading advisor as it, in good faith, deems to be
in the best interests of Series A.
PSI, when acting as Series A's futures commission merchant in accepting
orders for the purchase or sale of domestic futures contracts, is required by
Commodity Futures Trading Commission ('CFTC') regulations to separately account
for and segregate as belonging to Series A all assets of Series A relating to
domestic futures trading (subject to the opt out provisions discussed below) and
is not allowed to commingle such assets with other assets of PSI. At September
28, 2001, such segregated assets totalled $3,894,795. Part 30.7 of the CFTC
regulations also requires PSI to secure assets of Series A related to foreign
futures trading, which totalled $2,266,076 at September 28, 2001. There are no
segregation requirements for assets related to forward trading.
The CFTC promulgated rules that allow futures commission merchants to permit
certain customers, including Series A, to opt out of segregation with regard to
trading on certain exchanges, but PSI has not done so to date. If Series A were
to opt out, its funds could be held in a broader and riskier range of
investments.
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As of September 28, 2001, Series A's open futures contracts mature within
three months.
At September 28, 2001 and December 31, 2000, the fair value of open futures
contracts were:
<Table>
<Caption>
2001 2000
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
Domestic exchanges
Interest rates $ 87,296 $ -- $ 344,677 $ --
Currencies 105,556 -- 202,200 --
Commodities 358,560 -- 36,563 37,300
Foreign exchanges
Interest rates 201,834 10,829 492,521 23,022
Stock indices -- -- 66,353 --
Commodities 172,780 -- -- 550,696
---------- ----------- ---------- -----------
$ 926,026 $ 10,829 $1,142,314 $ 611,018
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</Table>
D. Financial Highlights
<Table>
<Caption>
Year-To-Date 2001 Third Quarter 2001
----------------- ------------------
Performance per Interest
Net asset value, beginning of period $ 75.76 $ 72.17
----------------- ----------
Net realized gain and change in net unrealized
gain/loss on commodity transactions 4.60 6.92
Interest income 2.64 .63
Expenses (4.79) (1.51)
----------------- ----------
Increase for the period 2.45 6.04
----------------- ----------
Net asset value, end of period $ 78.21 $ 78.21
----------------- ----------
----------------- ----------
Total return 3.23% 8.37%
Ratio to average net assets
Interest income 4.89% 3.62%
Expenses 8.59% 8.68%
</Table>
E. Subsequent Event
In accordance with the advisory agreement between Series A, the Managing
Owner and Eagle Trading Systems, Inc. (the 'Trading Advisor'), effected on March
21, 2000, the Trading Advisor is paid a weekly management fee at an annual rate
of 1% of Series A's net asset value until the net asset value per Interest is at
least $80 for a period of 10 consecutive business days, at which time the weekly
management fee will increase to an annual rate of 2%. Effective October 31,
2001, Series A sustained a net asset value per Interest greater than $80 for 10
consecutive business days. As a result, the Trading Advisor will be paid a
weekly management fee at an annual rate of 2% beginning on November 1, 2001.
6
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WORLD MONITOR TRUST--SERIES A
(a Delaware Business Trust)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Series A commenced operations on June 10, 1998 with gross proceeds of
$6,039,177 allocated to commodities trading. Interests in Series A continued to
be offered weekly until Series A achieved its subscription maximum of
$34,000,000 during November 1999.
Interests in Series A may be redeemed on a weekly basis. Redemptions of
limited interests for Year-To-Date 2001, Third Quarter 2001 and for the period
from June 10, 1998 (commencement of operations) to September 28, 2001 were
$3,431,082, $381,780 and $21,085,871, respectively. Redemptions of general
interests for Year-To-Date 2001, and for the period from June 10, 1998
(commencement of operations) to September 28, 2001 were $26,411 and $185,813,
respectively. Additionally, Interests owned in one series of World Monitor Trust
(Series A, B and C) may be exchanged, without any charge, for Interests of one
or more other series of World Monitor Trust on a weekly basis for as long as
Interests in those Series are being offered to the public. Since Interests in
Series A are no longer being offered, participants can no longer exchange their
Interests from Series B and/or Series C into Series A; however, participants can
currently continue to exchange their Interests from Series A to Series B and/or
Series C. Future redemptions and exchanges will impact the amount of funds
available for investment in commodity contracts in subsequent periods.
At September 28, 2001, 100% of Series A's net assets were allocated to
commodities trading. A significant portion of the net assets was held in cash,
which is used as margin for Series A's trading in commodities. Inasmuch as the
sole business of Series A is to trade in commodities, Series A continues to own
such liquid assets to be used as margin. PSI credits Series A monthly with 100%
of the interest it earns on the average net assets in Series A's accounts.
The commodities 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 limit. Commodity futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading. Such market
conditions could prevent Series A from promptly liquidating its commodity
futures positions.
Since Series A's business is to trade futures and forward 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 contract
(credit risk). Series A's exposure to market risk is influenced by a number of
factors, including the volatility of interest rates and foreign currency
exchange rates, the liquidity of the markets in which the contracts are traded
and the relationship among the contracts held. The inherent uncertainty of
Series A's speculative trading, as well as the development of drastic market
occurrences, could result in monthly losses considerably beyond Series A's
experience to date and could ultimately lead to a loss of all or substantially
all of investors' capital. The Managing Owner attempts to minimize these risks
by requiring Series A and its Trading Advisor to abide by various trading
limitations and policies, which include limiting margin amounts, trading only in
liquid markets and permitting the use of stop loss provisions. See Note C to the
financial statements for a further discussion on the credit and market risks
associated with Series A's futures and forward contracts.
Series A does not have, nor does it expect to have, any capital assets.
Results of Operations
After the attacks of September 11th, the Managing Owner contacted the Trading
Advisor who reported that there was no material disruption to its ability to
follow its trading systems and to function normally. Additionally, there was no
material disruption to the Managing Owner's ability to maintain operations and
perform its functions as a result of the tragic events.
7
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The net asset value per Interest as of September 28, 2001 was $78.21, an
increase of 3.23% from the December 31, 2000 net asset value per Interest of
$75.76 and an increase of 8.37% from the June 29, 2001 net asset value per
Interest of $72.17. Past performance is not necessarily indicative of future
results.
Series A's gross trading gains (losses) were $512,000 and $522,000 during
Year-To-Date 2001 and Third Quarter 2001, respectively, compared to $(3,492,000)
and $(919,000) during Year-To-Date 2000 and Third Quarter 2000, respectively.
Due to the nature of Series A's trading activities, a period to period
comparison of its trading results is not meaningful. However, a detailed
discussion of Series A's Third Quarter 2001 trading results is presented below.
Quarterly Market Overview
The pace of global economic activity remained slow throughout the third
quarter of 2001. Weakened business expenditure and efforts to reduce inventory
resulted in decreased manufacturing activity. Labor demand declined in most
sectors and the unemployment rate edged up to 4.9% in August. After a period of
strength, the U.S. dollar fell against most major foreign currencies,
particularly the Japanese yen, the euro and the Swiss franc. Global equity
markets fell throughout most of the quarter while short- and long-term interest
rates declined pushing bond prices higher. Consumer spending weakened slightly,
but generally remained strong through most of the quarter, supported in part by
low mortgage rates, tax rebates, declining energy prices and widespread
discounting of retail prices. Consumer confidence remained at moderately
favorable levels during the first two months of the quarter and helped moderate
economic weakness. Growth in many foreign industrial economies, including Japan
and much of Europe, weakened during the third quarter as well. Financial
conditions deteriorated markedly in Argentina and many other developing
countries.
The terrorist attacks of September 11th further weakened the sluggish U.S.
and global economies. Equity markets throughout the world plunged in the week
following the attacks. The Dow Jones industrial average suffered its worst
percentage loss since the Great Depression due to uncertainty about how the
economy would perform as a result of these attacks and other threats of
terrorism. U.S. equity indices recovered somewhat at the end of September as
interest rate cuts by the U.S. Federal Reserve and fiscal stimuli by Congress
combined to help fuel an economic rebound. Global equity markets followed suit,
rebounding from earlier lows as well.
The U.S. dollar's downward trend against many foreign currencies accelerated
after September 11th. As a result of the attacks, many investors switched
exposure from the U.S. dollar to other currencies such as the Swiss franc,
British pound and euro, all of which rose against the U.S. dollar.
U.S. and European interest rate instruments rose throughout most of the
quarter as data indicated persistent weakness in the U.S. economy. The U.S.
Federal Reserve lowered interest rates by 25 basis points in August in an effort
to stimulate the economy. Interest rate instruments continued to rally in the
wake of September 11th as the U.S. Federal Reserve moved to inject liquidity
into the economy, cutting interest rates 50 basis points on September 17th to
3%. This move was soon followed by the Central Bank of Canada, the European
Central Bank and the Swiss National Central Bank, who also lowered their rates
0.50%.
Energy prices began the quarter low, but peaked sharply immediately after the
September 11th attacks amid worries of a potential interruption in supplies.
Energy prices soon reversed course as concerns of decreased demand caused by a
global economic recession outweighed fears of scarcity. Two weeks after the
attacks, oil prices plunged more than 12% to a 22-month low of $23 a barrel.
OPEC leaders announced that with prices within their $22 to $28 a barrel target,
they see no need to alter output and assured that there will be no disruption in
supplies.
Quarterly Performance of Series A
The following is a summary of performance for the major sectors in which
Series A traded:
Indices (+): The attacks on September 11th further weakened slowing global
economies and declining equity markets. Short positions in the Euro DAX, London
FTSE and S&P 500 resulted in gains for Series A.
Metals (+): Short copper and aluminum positions resulted in gains as fears of
a global economic recession and decreasing industrial production lowered prices
of industrial commodities. Long gold positions resulted in gains as gold prices
rose in the wake of the September 11th attacks.
8
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Interest rates (+): Long U.S. and European bond positions resulted in gains
throughout the quarter as many central banks lowered interest rates in an effort
to boost weakening economies.
Energies (+): Energy prices fell from their September 11th peak on concerns
that demand will wane due to weakening global economies. Short natural gas
positions resulted in gains.
Currencies (-): Short euro, Japanese yen, Swiss franc and British pound
positions incurred losses for Series A as these currencies strengthened against
the U.S. dollar. The U.S. dollar continued to decline against foreign currencies
after September 11th as investors sought to decrease their exposure to the
dollar.
Series A's average net asset levels during Year-To-Date 2001 and Third
Quarter 2001 have significantly decreased from Year-To-Date 2000 and Third
Quarter 2000, respectively, primarily due to redemptions during 2001 and 2000.
The declining asset levels have led to proportionate decreases in the amount of
interest earned by Series A, as well as commissions and management fees
incurred, as further discussed below.
Interest income is earned on the average net assets held at PSI and,
therefore, varies monthly according to interest rates, trading performance and
redemptions. Interest income decreased $696,000 and $255,000 during Year-To-Date
2001 and Third Quarter 2001, as compared to Year-To-Date 2000 and Third Quarter
2000, respectively, due to the decrease in net assets, as discussed above, as
well as a decline in interest rates during 2001 versus 2000.
Commissions are calculated on Series A's net asset value at the end of each
week and, therefore, vary according to weekly trading performance and
redemptions. Commissions decreased $765,000 and $245,000 during Year-To-Date
2001 and Third Quarter 2001, as compared to Year-To-Date 2000 and Third Quarter
2000, respectively, due to the decrease in net assets, as discussed above.
Effective December 6, 1999, the Eagle-Global System became the exclusive
trading program used by the Trading Advisor to trade Series A's assets. In
conjunction with this change, the Managing Owner and the Trading Advisor
voluntarily agreed to terminate the initial advisory agreement and enter into a
new advisory agreement effective March 21, 2000.
Pursuant to the new advisory agreement, the Trading Advisor is paid a weekly
management fee at an annual rate of 1% of Series A's net asset value until the
net asset value per Interest is at least $80 for a period of 10 consecutive
business days, at which time the weekly management fee will be increased to an
annual rate of 2% (i.e., the rate pursuant to the initial advisory agreement).
Effective October 31, 2001, Series A sustained a net asset value per Interest
greater than $80 for 10 consecutive business days. As a result, the Trading
Advisor will be paid a weekly management fee at an annual rate of 2% beginning
on November 1, 2001. Additionally, although the term of the new advisory
agreement commenced on March 21, 2000, the Trading Advisor must recoup all
trading losses incurred under the initial advisory agreement before an incentive
fee is paid. Furthermore, the new advisory agreement resets the net asset value
for purposes of its termination provisions (see Note C to the financial
statements). The new advisory agreement may be terminated for a variety of
reasons, including at the discretion of the Managing Owner.
All trading decisions for Series A are made by the Trading Advisor.
Management fees are calculated on Series A's net asset value at the end of each
week and, therefore, are affected by weekly trading performance and redemptions.
Management fees decreased $149,000 and $32,000 during Year-To-Date 2001 and
Third Quarter 2001, as compared to Year-To-Date 2000 and Third Quarter 2000,
respectively, due to the decrease in net assets as discussed above. The
reduction in the management fee from an annual rate of 2% of Series A's net
asset value to 1% during March 2000, as discussed above, also contributed to the
$149,000 decrease.
Incentive fees are based on the 'New High Net Trading Profits' generated by
the Trading Advisor, as defined in the advisory agreement among the Trust, the
Managing Owner and the Trading Advisor. No incentive fees were paid during
Year-To-Date 2001 or Year-To-Date 2000.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information regarding quantitative and qualitative disclosures about market
risk is not required pursuant to Item 305(e) of Regulation S-K.
9
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against Series A or the Managing Owner.
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
and
4.1--Second Amended and Restated Declaration of Trust and Trust Agreements of
World Monitor Trust dated as of March 17, 1998 (incorporated by reference
to Exhibits 3.1 and 4.1 to Series A's Registration Statement on Form S-1,
File No. 333-43033)
4.2--Form of Request for Redemption (incorporated by reference to Exhibit 4.2
to Series A's Registration Statement on Form S-1, File No. 333-43033)
4.3--Form of Exchange Request (incorporated by reference to Exhibit 4.3 to
Series A's Registration Statement on Form S-1, File No. 333-43033)
4.4--Form of Subscription Agreement (incorporated by reference to Exhibit 4.4
to Series A's Registration Statement on Form S-1, File No. 333-43033)
(b) Reports on Form 8-K--None
10
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Series A
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WORLD MONITOR TRUST--SERIES A
By: Prudential Securities Futures Management
Inc.
A Delaware corporation, Managing Owner
By: /s/ Steven Carlino Date: November 9, 2001
----------------------------------------
Steven Carlino
Vice President and Treasurer
11