10-Q 1 c384-20140630x10q.htm 10-Q 29765b79ea2d438

 

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, 2014

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:     000-51836

 

 

ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.

(Exact name of registrant as specified in charter)

 

 

 

 

 

 

 

 

 

 

Illinois

 

36-4368292

(State of Organization)

 

(IRS Employer Identification Number)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c/o Beeland Management Company, L.L.C.

General Partner

141 West Jackson Boulevard

Suite 1340A

Chicago, Illinois

 

60604

(Address of principal executive offices)

 

(Zip Code)

 

(312) 264-4375

(Registrant's telephone number, including area code)

 

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, and (2) has been subject to such filing requirements for the past 90 days.   Yes [X]    No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                          Yes [X]    No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer [  ]     Accelerated filer [  ]      Non-accelerated filer [ ]Smaller reporting company [X]  

   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).        Yes [   ]  No [ X ]

 

 

 


 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1.FINANCIAL STATEMENTS

 

 

 

The following financial statements of Rogers International Raw Materials Fund, L.P. are included in Item 1:

 

 

 

2


 

 

Rogers International Raw Materials Fund, L.P.

Statements of Financial Condition as of June 30, 2014 (Unaudited)  and December 31, 2013 (Audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

December 31, 2013

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in broker trading accounts:

 

 

 

 

 

 

Cash at brokers

 

$

2,584,684 

 

$

3,178,609 

Unrealized gain (loss) on open futures contracts, net

 

 

15,810 

 

 

(227,208)

      Total equity in brokers trading accounts

 

 

2,600,494 

 

 

2,951,401 

 

 

 

 

 

 

 

U.S. Government securities, at fair value

 

 

15,698,335 

 

 

16,199,351 

Cash and cash equivalents

 

 

238,990 

 

 

35,365 

      Total assets

 

$

18,537,819 

 

$

19,186,117 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions payable

 

$

2,690 

 

$

2,690 

Accrued management fees – General Partner

 

 

14,931 

 

 

15,482 

Administrative and other fees payable

 

 

125,581 

 

 

164,836 

Withdrawals payable

 

 

667,353 

 

 

566,907 

      Total liabilities

 

 

810,555 

 

 

749,915 

 

 

 

 

 

 

 

PARTNERS’ CAPITAL (NET ASSETS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital (net assets)

 

 

17,727,264 

 

 

18,436,202 

 

 

 

 

 

 

 

      Total liabilities and partners’ capital (net assets)

 

$

18,537,819 

 

$

19,186,117 

 

 

See accompanying notes to the financial statements.

 

 

3


 

 

Rogers International Raw Materials Fund, L.P.

Condensed Schedule of Investments as of June 30, 2014 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government securities:

 

 

 

 

Percent of Partners' Capital

(total cost - $15,696,195)

 

Fair Value

 

(Net Assets)

U.S. Treasury Bills due  08/14/14 at .06%, principal amount  $7,700,000

 

$

7,699,432 

 

43.43 

%

U.S. Treasury Bills due 10/16/2014 at .04%, principal amount  $4,000,000

 

 

3,999,583 

 

22.56 

 

U.S. Treasury Bills due 11/13/2014 at .05%, principal amount  $4,000,000

 

 

3,999,320 

 

22.56 

 

 

 

$

15,698,335 

 

88.55 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gain (Loss) on Open Long Futures

 

Percent of Partners' Capital

 

 

Contracts

 

(Net Assets)

Futures contracts*:

 

 

 

 

 

 

U.S. Futures Positions

 

 

 

 

 

 

   Agricultural

 

$

(225,344)

 

(1.27)

%

   Metals

 

 

95,475 

 

0.54 

 

   Energy

 

 

52,986 

 

0.30 

 

         Total U.S. Futures Positions

 

 

(76,883)

 

(0.43)

%

 

 

 

 

 

 

 

Foreign Futures Positions

 

 

 

 

 

 

   Agricultural

 

 

(13,637)

 

(0.08)

 

   Metals

 

 

106,330 

 

0.60 

 

         Total Foreign Futures Positions

 

 

92,693 

 

0.52 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         Total Futures Contracts

 

$

15,810 

 

0.09 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*No individual futures contract position constitutes greater than 1 percent of Partners’ Capital (Net Assets).

 

Accordingly, the number of contracts and expiration dates are not presented.

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

4


 

 

Rogers International Raw Materials Fund, L.P.

Condensed Schedule of Investments as of December 31, 2013 (Audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government securities:

 

 

 

 

Percent of Partners' Capital       

 

 

Fair Value

 

(Net Assets)

(total cost - $16,198,357)

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills due 2/13/2014 at 0.02%, principal amount $8,200,000

 

$

8,199,805 

 

44.48 

%

U.S. Treasury Bills due 3/20/2014 at 0.01%, principal amount $4,000,000

 

 

3,999,949 

 

21.70 

 

U.S. Treasury Bills due 5/01/2014 at 0.03%, principal amount $4,000,000

 

 

3,999,597 

 

21.69 

 

 

 

 

 

 

 

 

 

 

$

16,199,351 

 

87.87 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gain (Loss) on Open Long

 

Percent of Partners' Capital

 

 

Contracts

 

(Net Assets)

Futures contracts*:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Futures Positions

 

 

 

 

 

 

   Agricultural

 

$

(148,728)

 

(0.81)

%

   Metals

 

 

(55,860)

 

(0.30)

 

   Energy

 

 

12,655 

 

0.07 

 

         Total U.S. Futures Positions

 

 

(191,933)

 

(1.04)

 

 

 

 

 

 

 

 

Foreign Futures Positions

 

 

 

 

 

 

   Agricultural

 

 

(3,261)

 

(0.02)

 

   Metals

 

 

(32,014)

 

(0.17)

 

         Total Foreign Futures Positions

 

 

(35,275)

 

(0.19)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         Total Futures Contracts

 

$

(227,208)

 

(1.23)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*No individual futures contract position constitutes greater than 1 percent of Partners’ Capital (Net Assets).

 

 

 

 

 

 

Accordingly, the number of contracts and expiration dates are not presented.

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

5


 

 

Rogers International Raw Materials Fund, L.P.

Statements of Operations for the Three and Six Months Ended June 30, 2014 and June 30,  2013  (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Net trading gains (losses):

 

 

 

 

 

 

 

 

 

   Realized

 

$          225,289

 

$      (1,504,008)

 

$          727,072

 

$       (1,178,606)

 

   Change in unrealized

 

(132,089)

 

(274,920)

 

243,018 

 

(553,723)

 

   Commissions

 

(10,491)

 

(14,265)

 

(21,923)

 

(26,416)

 

 

 

82,709 

 

(1,793,193)

 

948,167 

 

(1,758,745)

 

 

 

 

 

 

 

 

 

 

 

Investment income:

 

 

 

 

 

 

 

 

 

   Interest income

 

2,166 

 

2,695 

 

3,536 

 

6,227 

 

 

 

2,166 

 

2,695 

 

3,536 

 

6,227 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

   Management fees – General Partner

 

45,889 

 

57,154 

 

91,743 

 

120,986 

 

   Administrative fees and other expenses

 

67,522 

 

101,850 

 

135,431 

 

218,158 

 

 

 

113,411 

 

159,004 

 

227,174 

 

339,144 

 

 

 

 

 

 

 

 

 

 

 

Net investment loss

 

(111,245)

 

(156,309)

 

(223,638)

 

(332,917)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$           (28,536)

 

$      (1,949,502)

 

$          724,529

 

$       (2,091,662)

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in NAV per GP and LP unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$               (0.27)

 

$             (14.14)

 

$                6.40

 

$              (15.20)

 

Limited Partners-Series A

 

$               (0.27)

 

$             (14.14)

 

$                6.40

 

$              (15.20)

 

Limited Partners-Series B

 

$               (0.29)

 

$             (13.85)

 

$                6.20

 

$              (14.90)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per General and Limited Partners (based on weighted average number of units outstanding during the period):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$                (360)

 

$           (21,888)

 

$              8,409

 

$            (22,689)

 

Limited Partners-Series A

 

(26,665)

 

(1,845,049)

 

682,101 

 

(1,979,091)

 

Limited Partners-Series B

 

(1,511)

 

(82,565)

 

34,019 

 

(89,882)

 

 

 

$           (28,536)

 

$      (1,949,502)

 

$          724,529

 

$       (2,091,662)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

 

 

 

 

6


 

 

Rogers International Raw Materials Fund, L.P.

Statements of Changes in Partners’ Capital (Net Assets) for the Six Months Ended June 30, 2014 and June 30, 2013 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

Limited Partners

 

 

 

 

 

 

 

 

 

 

 

 

Series A

 

Series B

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Dollars

 

Number of Units

 

Dollars

 

Number of Units

 

Dollars

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital (net assets), December 31, 2013

 

1,314 

 

$

210,692 

 

108,236 

 

$

17,354,304 

 

5,569 

 

$

871,206 

 

$

18,225,510 

 

$

18,436,202 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions

 

 -

 

 

 -

 

 -

 

 

 -

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 -

 

 

8,409 

 

 -

 

 

682,101 

 

 -

 

 

34,019 

 

 

716,120 

 

 

724,529 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

 -

 

 

 -

 

(8,410)

 

 

(1,391,696)

 

(259)

 

 

(41,771)

 

 

(1,433,467)

 

 

(1,433,467)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital (net assets), June 30, 2014

 

1,314 

 

$

219,101 

 

99,826 

 

$

16,644,709 

 

5,310 

 

$

863,454 

 

$

17,508,163 

 

$

17,727,264 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital (net assets), December 31, 2012

 

1,732 

 

$

299,995 

 

140,726 

 

$

24,371,666 

 

6,485 

 

$

1,098,623 

 

$

25,470,289 

 

$

25,770,284 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions

 

 -

 

 

 -

 

 -

 

 

 -

 

144 

 

 

25,117 

 

 

25,117 

 

 

25,117 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 -

 

 

(22,689)

 

 -

 

 

(1,979,091)

 

 -

 

 

(89,882)

 

 

(2,068,973)

 

 

(2,091,662)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(294)

 

 

(50,000)

 

(16,674)

 

 

(2,794,321)

 

(889)

 

 

(146,919)

 

 

(2,941,240)

 

 

(2,991,240)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital (net assets), June 30, 2013

 

1,438 

 

$

227,306 

 

124,052 

 

$

19,598,254 

 

5,740 

 

$

886,939 

 

$

20,485,193 

 

$

20,712,499 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per unit data

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value Series A

 

$   166.74 

 

 

$      157.99 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value Series B

 

$   162.62 

 

 

$      154.48 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value               General Partner

 

$   166.74 

 

 

$      157.99 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

7


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

Note 1.Significant Accounting Policies:  

 

Nature of Business and Organization: Rogers International Raw Materials Fund, L.P. (the "Partnership") is an Illinois Limited Partnership that was established in May 2000. The Partnership trades a portfolio primarily of commodity futures and forward contracts, principally on recognized exchanges. The Partnership may also purchase contracts in the over the counter marketplace under certain circumstances. The Partnership invests and trades exclusively on the “long side” of the market. The Partnership’s investment strategy is designed to replicate the Rogers International Commodity Index ® (the “Index”) and positions are rebalanced monthly to maintain the Index’s relative weightings. James B. Rogers designed the Index.

 

The Partnership commenced trading during November 2001 with assets raised from the offering of its original units of limited partnership interest, now referred to as "Series A" units, and offered Series A units through October 2005. The Partnership began offering Series B units in November 2010.  Series A units and Series B units are identical with respect to their participation in the profits and losses of the Partnership;  however, Series B units do not participate in any Partnership expenses or recoveries related to the bankruptcy of Refco Inc. and its affiliates. The Partnership’s General Partner and commodity pool operator is Beeland Management Company, L.L.C. (the “General Partner”). 

 

Accounting Policies:  The Partnership follows Generally Accepted Accounting Principles (“GAAP”), as established by the Financial Accounting Standards Board (“FASB”), to ensure consistent reporting of financial condition and results of operation. The Partnership is an investment company and follows the accounting and reporting guidelines in FASB Topic 946.    

 

Net Assets: The valuation of net assets includes open commodity futures contracts owned by the Partnership, if any, at the end of the period. The unrealized gain or loss on these contracts has been calculated based on closing prices on the last business day of each month. Net asset value is determined by subtracting liabilities from assets, which also equals partners’ capital.

 

Cash and Cash Equivalents:  Cash and cash equivalents include highly liquid instruments with original maturities of three months or less at the date of acquisition. Cash and cash equivalents represent amounts on deposit with a broker to facilitate payment of expenses and partner withdrawals.

 

Fair Value of Financial Instruments:  Securities and derivative financial instruments are recorded at fair value.

 

Deposits with Brokers:  The Partnership deposits assets with brokers subject to Commodity Futures Trading Commission regulations and various exchange and broker requirements.  Margin requirements are satisfied by the deposit of cash with such brokers.  The Partnership earns interest income on its assets deposited with the brokers.

 

Revenue Recognition: Futures and forward contracts are recorded on a trade date basis and realized gains or losses are recognized when contracts are liquidated.  Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statements of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses.  Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. 

 

Interest Income Recognition: The Partnership records interest income on the accrual basis.

 

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 

 

Foreign Currency Translation: Foreign currency is translated into U.S. dollars at the exchange rate prevailing on the last business day of each month.  The Partnership does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities and derivative financial instruments held. Such fluctuations are included with the net realized trading gains or losses.

 

 

 

8


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

Note 1.Significant Accounting Policies (Continued):

 

Ongoing Offering Expenses: Ongoing offering expenses are accrued on an ongoing basis and charged to expense as incurred.

 

Income Taxes: No provision for income taxes has been made in these financial statements as each partner is individually responsible for reporting income or loss based on its respective share of the Partnership’s income and expenses as reported for income tax purposes.

 

The Partnership is generally not subject to examination by U.S. federal or state taxing authorities for tax years before 2010. The Partnership has no material uncertain tax positions, and accordingly, has not recorded a liability for the payment of interest or penalties through June 30, 2014.

 

Profit and Loss Allocation: Profits and losses of the Partnership are allocated by series based on the number of units held.

 

Withdrawals Payable:  Withdrawals approved by the General Partner prior to month-end with a fixed effective date and fixed amount are recorded as withdrawals payable as of month-end (See Note 5).

 

Statement of Cash Flows:  The Partnership has elected not to provide a statement of cash flows as permitted by GAAP as all of the following conditions have been met:

 

-During the year, substantially all of the Partnership’s investments were highly liquid;

-Substantially all of the Partnership’s investments are carried at fair value;

-The Partnership had little or no debt during the year;

-The Partnership’s financial statements include a statement of changes in partners’ capital (net assets).

 

Note 2.Fair Value Measurements:

 

As described in Note 1, the Partnership records its investments at fair value.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs.  Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability.  Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value.   The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1.  Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

 

Level 2.  Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. 

 

Level 3.  Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.  The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.

 

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. 

 

 

9


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

Note 2.    Fair Value Measurements (Continued):

 

The following section describes the valuation techniques used by the Partnership to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized.

 

The fair values of exchange traded futures contracts are based upon exchange settlement prices.  Money market funds included in cash and cash equivalents are valued using quoted market prices.  U.S. Government securities are stated at cost plus accrued interest, which approximates fair value based on quoted prices for identical assets in an active market. These financial instruments are categorized in Level 1 of the fair value hierarchy.

 

The following table summarizes the Partnership’s assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 using the fair value hierarchy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

December 31, 2013

Description

 

Level 1

 

Level 1

Equity in brokers trading account:

 

 

 

 

 

 

Unrealized gain (loss) on open futures contracts, net*

 

$

15,810 

 

$

(227,208)

U.S. Government securities*

 

 

15,698,335 

 

 

16,199,351 

Cash and cash equivalents

 

 

 

 

 

 

Money market funds

 

 

53,811 

 

 

12,705 

 

 

 

 

 

 

 

Total assets at fair value

 

$

15,767,956 

 

$

15,984,848 

 

 

*See condensed schedules of investments for further description.

 

At June 30, 2014 and December 31, 2013 and for the three and six months ended June 30, 2014 and June 30, 2013 there were no Level 2 or Level 3 assets or liabilities. The Partnership assesses the levels of the investments at each measurement day, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer. There were no transfers among Levels 1, 2 and 3 during the year.

 

In addition, substantially all of the Partnership’s other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments.

 

 

10


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

Note 3.Derivative Transactions:

 

Qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements are presented.

 

The Partnership’s business is the speculative trading of futures contracts. The Partnership does not consider any derivative instruments to be hedging instruments, as this term is generally understood under FASB guidance.

 

At June 30, 2014 and December 31, 2013 and for the three and six months ended June 30, 2014 and June 30, 2013, the Partnership’s derivative contracts had the following impact on the statements of financial condition and statements of operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

Liability Derivatives

 

Net Derivatives

 

 

June 30, 2014

 

June 30, 2014

 

June 30, 2014

 

 

Fair Value

 

Fair Value

 

Fair Value*

Futures positions:

 

 

 

 

 

 

 

 

 

Agricultural

 

$

68,412 

 

$

(307,393)

 

$

(238,981)

Metals

 

 

287,559 

 

 

(85,754)

 

 

201,805 

Energy

 

 

74,942 

 

 

(21,956)

 

 

52,986 

Totals

 

$

430,913 

 

$

(415,103)

 

$

15,810 

 

*The net fair value of all asset and liability derivative is included in equity in brokers trading accounts in the statements of financial condition.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

Liability Derivatives

 

Net Derivatives

 

 

December 31, 2013

 

December 31, 2013

 

December 31, 2013

 

 

Fair Value

 

Fair Value

 

Fair Value*

Futures positions:

 

 

 

 

 

 

 

 

 

Agricultural

 

$

77,300 

 

$

(229,289)

 

$

(151,989)

Metals

 

 

165,267 

 

 

(253,141)

 

 

(87,874)

Energy

 

 

47,847 

 

 

(35,192)

 

 

12,655 

Totals

 

$

290,414 

 

$

(517,622)

 

$

(227,208)

 

 

*The net fair value of all asset and liability derivative is included in equity in broker trading accounts in the statements of financial condition.

 

11


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

Note 3. Derivative Transactions (Continued):

Trading revenue for the three and six months ended June 30, 2014 and June 30, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

Type of Contract

 

2014

 

2013

 

2014

 

2013

 

Agricultural

 

$

(511,229)

 

$

(539,742)

 

$

244,902 

 

$

(686,192)

 

Metals

 

 

248,622 

 

 

(723,256)

 

 

195,056 

 

 

(223,830)

 

Energy

 

 

355,808 

 

 

(515,930)

 

 

530,133 

 

 

(822,307)

 

 

 

$

93,200 

 

$

(1,778,928)

 

$

970,090 

 

$

(1,732,329)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line Item in Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized

 

$

225,289 

 

$

(1,504,008)

 

$

727,072 

 

$

(1,178,606)

 

Change in unrealized

 

 

(132,089)

 

 

(274,920)

 

 

243,018 

 

 

(553,723)

 

 

 

$

93,200 

 

$

(1,778,928)

 

$

970,090 

 

$

(1,732,329)

 

 

Trading income is exclusive of brokerage commissions.

 

For the three and six months ended June 30, 2014 and 2013, the monthly average number of contracts bought and sold was 628,  616,  423 and 520, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2014

 

 

 

 

 

 

Gross Amount of Recognized Assets and Liabilities

 

 

Gross Amounts Offset in the Consolidated Statement of Financial Condition

 

 

Net Amount of Unrealized Gain Presented in the Consolidated Statement of Financial Condition

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

US and foreign futures contracts

 

$

430,913 

 

$

(415,103)

 

$

15,810 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

US and foreign futures contracts

 

$

415,103 

 

$

(415,103)

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Assets and Liabilities and Collateral Received by Counterparty

As of June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount of Unrealized Gain Presented in the Consolidated Statement

 

 

Gross Amounts Not Offset in the Statement of Financial Condition

 

 

 

Counterparty

 

 

of Financial Condition

 

 

Financial Instruments

 

 

Cash Collateral Deposited

 

 

Net Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

ADM Investor Services, Inc

 

$

15,810 

 

$

 -

 

$

 -

 

$

15,810 

Total

 

$

15,810 

 

$

 -

 

$

 -

 

$

15,810 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12


 

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

Note 3. Derivative Transactions (Continued):

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

 

Gross Amount of Recognized Assets and Liabilities

 

 

Gross Amounts Offset in the Consolidated Statement of Financial Condition

 

 

Net Amount of Unrealized Loss Presented in the Consolidated Statement of Financial Condition

 

 

Assets

 

 

 

 

 

 

 

 

 

 

US and foreign futures contracts

$

290,414 

 

$

(290,414)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

US and foreign futures contracts

$

517,622 

 

$

(290,414)

 

$

227,208 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Assets and Liabilities and Collateral Received by Counterparty

As of December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount of Unrealized Loss Presented in the Consolidated Statement

 

 

Gross Amounts Not Offset in the Statement of Financial Condition

 

 

Counterparty

 

of Financial Condition

 

 

Financial Instruments

 

 

Cash Collateral Deposited

 

Net Amount

 

 

 

 

 

 

 

 

 

 

 

ADM Investor Services, Inc

$

(227,208)

 

$

 -

 

$

 -

$

(227,208)

Total

$

(227,208)