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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
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 0-10604
THE FUTURE FUND II
(Exact name of registrant as specified in its charter)
Illinois # 36-3148138
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Heinold Asset Management, Inc.
One Financial Place
440 S. LaSalle - 20th Floor
Chicago, Illinois
(Address of principal executive offices)
60605
(Zip Code)
(312) 663-7900
(Registrant's telephone number, including area code)
Same
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FUTURE FUND II
(An Illinois Limited Partnership)
STATEMENTS OF FINANCIAL CONDITION
JULY 31, 1996 OCTOBER 31,
ASSETS: (UNAUDITED) 1995
-------------- -------------
CASH $ 0 $ 0
EQUITY IN FUTURES TRADING ACCOUNTS: -------------- -------------
UNITED STATES TREASURY SECURITIES, AT
COST PLUS ACCRUED INTEREST WHICH
APPROXIMATES MARKET 0 2,900,726
NET UNREALIZED TRADING GAINS (LOSSES) ON
OPEN FUTURES CONTRACTS 102,220 (70,634)
AMOUNT DUE FROM (TO) BROKER 2,457,298 272,798
-------------- -------------
2,559,518 3,102,890
-------------- -------------
$ 2,559,518 $ 3,102,890
============== =============
LIABILITIES & PARTNERS' CAPITAL:
ACCRUED BROKERAGE COMMISSIONS PAYABLE $ 14,902 $ 16,458
MANAGEMENT FEE 4,041 2,756
ACCRUED PROFIT SHARE 0 0
OTHER ACCRUED EXPENSES 4,962 2,217
REDEMPTION PAYABLE 20,145 23,964
-------------- -------------
TOTAL LIABILITIES 44,050 45,395
-------------- -------------
PARTNERS' CAPITAL:
GENERAL PARTNER, 29 UNIT
EQUIVALENTS OUTSTANDING AT JULY 31, 1996 38,947 40,879
AND OCTOBER 31, 1995, RESPECTIVELY
LIMITED PARTNERS, 1,844 AND 2,140 UNITS
OUTSTANDING AT JULY 31, 1996
AND OCTOBER 31, 1995, RESPECTIVELY 2,476,521 3,016,616
-------------- -------------
TOTAL PARTNERS' CAPITAL 2,515,468 3,057,495
-------------- -------------
$ 2,559,518 $ 3,102,890
============== =============
NET ASSET VALUE PER OUTSTANDING UNIT OF
PARTNERSHIP INTEREST $ 1,343.02 $ 1,409.63
============== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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THE FUTURE FUND II
(An Illinois Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED JULY 31, 1996 (UNAUDITED)
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
----------- ------------ -----------
FUND EQUITY AT OCTOBER 31, 1995 $ 3,016,616 $ 40,879 $ 3,057,495
(2,140 LIMITED PARTNERSHIP UNITS)
REDEMPTION OF 296 LIMITED
PARTNERSHIP UNITS (434,422) (434,422)
NET (LOSS) IN FUND EQUITY
FROM OPERATIONS (105,673) (1,932) (107,605)
----------- ------------ -----------
FUND EQUITY AT JULY 31, 1996 $ 2,476,521 $ 38,947 $ 2,515,468
(1,844 LIMITED PARTNERSHIP UNITS) =========== ============ ===========
NET ASSET VALUE PER UNIT AT
JULY 31, 1996: $ 1,343.02
===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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THE FUTURE FUND II
(An Illinois Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED JULY 31, 1996 AND 1995 (UNAUDITED)
REVENUES: 1996 1995
---------- ----------
NET REALIZED TRADING GAINS (LOSSES) ON CLOSED
FUTURES CONTRACTS $ (63,679) $ (472,384)
INCREASE (DECREASE) IN NET UNREALIZED
APPRECIATION ON OPEN FUTURES CONTRACTS 86,756 (8,725)
INTEREST INCOME 94,189 163,197
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117,266 (317,912)
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EXPENSES:
BROKERAGE COMMISSIONS 154,354 203,030
MANAGEMENT FEES 44,288 45,936
PROFIT SHARE 3,529 8,167
OTHER ADMINISTRATIVE EXPENSES 22,700 12,844
---------- ----------
224,871 269,977
---------- ----------
NET INCOME (LOSS) $ (107,605) $ (587,889)
========== ==========
NET GAIN (LOSS) ALLOCATED TO
GENERAL PARTNER $ (1,932) $ (7,208)
========== ==========
NET GAIN (LOSS) ALLOCATED TO
LIMITED PARTNERS $ (105,673) $ (580,681)
========== ==========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ (66.61) $ (248.54)
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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THE FUTURE FUND II
(An Illinois Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 1996 AND 1995 (UNAUDITED)
REVENUES: 1996 1995
---------- ----------
NET REALIZED TRADING GAINS (LOSSES) ON CLOSED
FUTURES CONTRACTS $ (285,564) $ (110,234)
INCREASE (DECREASE) IN NET UNREALIZED
APPRECIATION ON OPEN FUTURES CONTRACTS (91,174) (73,872)
INTEREST INCOME 33,493 56,268
---------- ----------
(343,245) (127,838)
---------- ----------
EXPENSES:
BROKERAGE COMMISSIONS 47,400 61,518
MANAGEMENT FEES 13,072 15,501
PROFIT SHARE (7,216) 3,365
OTHER ADMINISTRATIVE EXPENSES 7,050 7,500
---------- ----------
60,306 87,884
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NET INCOME (LOSS) $ (403,551) $ (215,722)
========== ==========
NET GAIN (LOSS) ALLOCATED TO
GENERAL PARTNER $ (6,181) $ (2,732)
========== ==========
NET GAIN (LOSS) ALLOCATED TO
LIMITED PARTNERS $ (397,370) $ (212,990)
========== ==========
INCREASE (DECREASE) IN NET ASSET VALUE FOR A
UNIT OUTSTANDING THROUGHOUT EACH PERIOD $ (213.13) $ (206.28)
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
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THE FUTURE FUND II
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JULY 31, 1996 AND 1995 (UNAUDITED)
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) $ (107,605) $ (587,889)
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
(INCREASE) DECREASE IN EQUITY IN FUTURES
TRADING ACCOUNT 543,372 1,016,439
INCREASE (DECREASE) IN ACCRUED EXPENSES (1,345) (68,035)
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 434,422 360,515
REDEMPTION OF LIMITED PARTNERSHIP UNITS 434,422 366,145
---------- ----------
NET CHANGE IN CASH 0 (5,630)
CASH - BEGINNING OF YEAR 0 5,630
---------- ----------
CASH - END OF YEAR $ 0 $ 0
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS
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THE FUTURE FUND II
(An Illinois Limited Partnership)
NOTES TO FORM 10-Q FINANCIAL STATEMENTS
1. The financial information included herein, other than the condensed
Statement of Financial Condition as of October 31, 1995, has been prepared by
management without audit by Independent Certified Public Accountants. The
condensed Statement of Financial Condition as of July 31, 1996 has been derived
from the audited financial statements as of October 31, 1995. The interim
financial statements do not include all the disclosures contained in the annual
financial statements. The information furnished includes all adjustments which
are, in the opinion of management, necessary for a fair statement of results
for the interim periods. The results of operations as presented, however,
should not be considered indicative of the results to be expected for the
entire year.
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THE FUTURE FUND II
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS, Continued
ITEM 2, Management's Discussion and Analysis of Financial
Condition and Operating Results for the nine months
ended July 31, 1996.
July 31, 1996 October 31, 1995
Ending Equity (Note A) $2,515,468 $3,057,495
NOTE A:
Ending equity at July 31, 1996 is lower than ending equity at October 31,
1995 due to the redemption of limited partnership units and unprofitable
trading.
Nine months ended Nine months ended
July 31, 1996 July 31, 1995
Change in net unrealized
trading gains (losses) on
open futures contracts $86,756 $(8,725)
(Note B)
Change in net unrealized trading gains (losses) on open futures contracts
for the nine months ended July 31, 1996 is higher than change in net unrealized
trading gains (losses) on open futures contracts for the nine months ended July
31, 1995 due to more profitable trading during the period.
Three months ended Three months ended
July 31, 1996 July 31, 1995
Net realized trading
gains (losses) on closed
futures contracts
(Note B) $(285,564) $(110,234)
NOTE B:
Net realized trading gains (losses) on closed futures contracts for the
three months ended July 31, 1996 is lower than net realized trading gains
(losses) on closed futures contracts for the three months ended July 31, 1995
due to less profitable trading during the period.
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EXHIBITS
None
PART II
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE FUTURE FUND II
(Registrant)
By Heinold Asset Management, Inc.
(General Partner)
By
Robert Ledvora
Chief Financial Officer
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