10-Q 1 c69929e10vq.txt FORM 10-Q FOR QUARTER ENDING APRIL 30, 2002 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 APRIL 30, 2002 ___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-9202 THE FUTURE FUND Exact name of registrant as specified in its charter) State of jurisdiction or incorporation (Illinois) IRS EMPLOYER ID NO. #36-3033727 C/0 HEINOLD ASSET MANAGEMENT. INC. ONE FINANCIAL PLACE 440 S. LASALLE ST-21 FLOOR CHICAGO ILLINOIS 60605 PHONE NUMBER 663-7500 SAME (Former name, former address and former fiscal year, if changed) 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 shortened 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 --- PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF FINANCIAL CONDITION

0104/3130/~~2002~~02 10/31/~~2001~~01 (UNAUDITED) (AUDITED) ASSETS Investments in affiliated general partnerships $ 4,~~549~~621,~~221~~408 $ 5,463,508 Due from affiliated broker 43,~~290~~585,~~404~~913 4,843,869 Other assets 0- 24,567 ----------- ----------- Total assets $ 8,~~839~~207,~~625~~321 $10,331,944 LIABILITIES & PARTNERS' CAPITAL Brokerage commissions $ 5147,~~417~~832 60,262 Redemptions payable 5960,~~144~~168 39,439 Management fees 2927,~~058~~079 34,105 Incentive fees 0 91,719 Other 257,~~269~~534 1,397 ----------- ----------- Total liabilities ~~164~~142,~~888~~613 226,922 Partners' capital: General Partner (220 ~~units~~unit equivalents outstanding ~~230~~218,~~417~~359 263,964 at ~~January~~April 3130,2002 and October 31, 2001) Limited Partners (87,~~063~~905 and 8,202 units outstanding at ~~June~~April 30, ~~2001~~2002 and October 31, ~~2000~~2001, respectively) 87,~~444~~846,~~320~~349 9,841,058 ----------- ----------- TOTAL PARTNERS' CAPITAL 8,~~674~~064,~~737~~708 10,105,022 ----------- ----------- $ 8,~~839~~207,~~625~~321 $10,331,944 =========== =========== NET ASSET VALUE PER UNIT OUTSTANDING $ ~~1,047~~992.3554 $ 1,199.83

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -2- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL 30, 2002 and 2001 (UNAUDITED)

REVENUES: 2002 2001 ~~2000~~ NET REALIZED TRADING GAINS (LOSSES) ON CLOSED FUTURES AND FORWARD CONTRACTS $ (~~376~~384,~~481~~374) $ 1742,~~263,715~~953 CHANGE IN NET UNREALIZED APPRECIATION OR DEPRECIATION ON OPEN FUTURES AND FORWARD CONTRACTS 144,388 (~~766~~318,~~380~~857) ~~228,544~~ INTEREST INCOME 3021,~~697~~829 ~~113~~95,~~571~~076 ----------- ----------- (1218,~~112,165~~157) 1519,~~605,831~~173 EXPENSES: BROKERAGE COMMISSIONS ~~158~~145,~~723~~958 ~~169~~173,~~709~~339 MANAGEMENT FEE 8882,~~954~~350 9597,~~362~~502 PROFIT SHARE ~~(91,719)~~ 0 63,376 OTHER ADMINISTRATIVE EXPENSES 126,~~094~~200 34,700 ----------- ----------- NET INCOME (LOSS) $(1452,~~280,216~~665) $ 1180,~~337,059~~255 NET INCOME (LOSS) TO GENERAL PARTNER $ (3312,~~547~~058) $ 314,~~970~~378 NET INCOME (LOSS) TO LIMITED PARTNER $(1440,~~246,669~~607) $ 1175,~~305,089~~877 CHANGE IN NET ASSET VALUE PER UNIT FOR THE PERIOD $ (~~152~~54.4881) $ ~~145~~19.3290

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -3- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2002 and 2001 (UNAUDITED)

~~LIMITED~~REVENUES: ~~GENERAL~~2002 ~~PARTNERS~~2001 ~~PARTNER~~NET ~~TOTAL~~REALIZED ~~------------~~TRADING ~~------------~~GAINS ~~------------~~(LOSSES) ~~PARTNERS~~ON ~~CAPITAL~~CLOSED ATFUTURES ~~OCTOBER~~AND ~~31,~~FORWARD ~~2001~~CONTRACTS $ 9(760,~~841,058~~855) $ ~~263~~2,~~964~~006,668 $CHANGE ~~10,105,022~~IN ~~(8,202~~NET ~~LIMITED~~UNREALIZED ~~PARTNERSHIP~~APPRECIATION ~~UNITS)~~OR ~~REDEMPTION~~DEPRECIATION OFON ~~139~~OPEN ~~LIMITED~~FUTURES ~~PARTNERSHIP~~AND ~~UNITS~~FORWARD CONTRACTS (~~150~~621,~~069~~992) 0 (~~150~~90,~~069~~313) ~~NET~~INTEREST INCOME (152,~~246,669)~~525 ~~(33~~208,~~547)~~647 ~~(1,280,216)~~ ------------ ------------ (1,330,322) 2,125,003 EXPENSES: BROKERAGE COMMISSIONS 304,682 343,047 MANAGEMENT FEE 171,303 192,864 PROFIT SHARE (91,719) 63,376 OTHER ADMINISTRATIVE EXPENSES 18,294 8,400 ----------- ----------- ~~PARTNERS'~~402,560 ~~CAPITAL~~607,687 ATNET ~~JAN~~INCOME 31(LOSS) $(1,~~2002~~732,883) $ 81,~~444~~517,~~320~~316 NET INCOME (LOSS) TO GENERAL PARTNER $ ~~230~~(33,~~417~~547) $ 836,~~674,737~~348 NET INCOME (~~8,063~~LOSS) TO LIMITED ~~PARTNERSHIP~~PARTNER ~~UNITS~~$(1,699,336) $ 1,480,968 CHANGE IN NET ASSET VALUE PER UNIT FOR THE PERIOD $ (207.29) $ 165.22

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -3A- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL FOR THE SIX MONTHS ENDED APRIL 30, 2002 (UNAUDITED)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -4- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED APRIL 30, 2002 AND 2001 (UNAUDITED) 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME (LOSS) (1,732,883) 1,517,314 ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: DUE FROM AFFILIATED BROKER AND GENERAL PARTNERSHIPS 2,124,623 (758,651) INCREASE (DECREASE) IN OTHER LIABILITIES (84,307) (134,701) ------------------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 307,433 623,962 CASH FLOWS FROM FINANCING ACTIVITIES REDEMPTION OF LIMITED PARTNERSHIP UNITS (307,433) (623,962) ------------------------ NET CASH UNSED IN FINANCING ACTIVITIES (307,433) (623,962) CHANGE IN CASH BALANCE 0 0 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS -5- THE FUTURE FUND (AN ILLINOIS LIMITED PARTNERSHIP) NOTES TO FORM 10-Q FINANCIAL STATEMENTS The unaudited interim condensed consolidated financial statements of the Future Fund ("the Fund) included herein have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Funds for the interim periods presented and are not necessarily indicative of a full year's results. In preparing the unaudited interim condensed financials statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. These financial statements should be read in conjunction with the Fund audited financial statements included in the Fund audited financial statements for the year ended October 31,2001., from which the accompanying Statement of Financial Condition was derived. 6 The Future Fund (An Illinois Limited Partnership) Notes to Form 10-Q Financial Statements, Continued Item 2, Management's discussion and analysis of Financial Condition, and operating results for the six months ended April 30, 2002

NOTE A: Ending capital at April 30,2002 is lower than ending capital at October 31, 2002 due to unprofitable trading and redemptions during the period. For the six month period ending April 30,2003, the Partnership's Net Asset Value per Unit decreased from $1,199.83 at October 31, 2001 to $992.54 at April 30, 2002. The majority of the losses occurred from trading activities in November where the NAV decreased by 8.49%. NOTE B:

Net realized and unrealized trading gains (losses) on Futures and Forward Contracts for the six months ended 4/30/2002 is less than net realized and unrealized trading gains (losses) on futures and forward contracts for the six months ended 4/30/2001 due to less profitable trading during the period. Interest income is earned on the Partnership's investment in U.S. Treasury bills and varies monthly according to interest rates, as well as the effect of trading performance and redemptions on the level of interest-bearing funds. Interest income from U.S. Treasury bills decreased by $156,000 for the six months ended April 30,2002 as compared to corresponding period in 2001. Additionally, interest income decreased from lower overall investment in U.S. Treasury bills due to the effect of redemptions and unfavorable trading performance during the six months ended April 30, 2002. NOTE C:

Net realized and unrealized trading gains (Losses) on Futures and Forward Contracts for the three months ended 4/30/2002 is less than net realized and unrealized trading gains (losses) on futures and forward contracts for the three months ended 4/30/2001 due to less profitable trading during the period.

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