15-12G 1 sbplus.txt SB PRINCIPAL PLUS FUTURES FUND L.P. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 15 CERTIFICATION AND NOTICE OF TERMINATION OF REGISTRATION UNDER SECTION 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SUSPENSION OF DUTY TO FILE REPORTS UNDER SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 0-28350 Smith Barney Principal Plus Futures Fund L.P. (Exact name of registrant as specified in its charter) 388 Greenwich Street - 7th Floor, New York, New York 10013 (212) 723-5424 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Units of Limited Partnership Interest (Title of each class of securities covered by this Form) None (Titles of all other classes of securities for which a duty to file reports under section 13(a) or 15(d) remains) Please place an X in the box(es) to designate, the appropriate rule provision(s) relied upon to terminate or suspend the duty to file reports: Rule 12g-4(a)(1)(i) |X| Rule 12h-3(b)(1)(i) |X| Rule 12g-4(a)(1)(ii) Rule 12h-3(b)(1)(ii) Rule 12g-4(a)(2)(i) Rule 12h-3(b)(2)(i) Rule 12g-4(a)(2)(ii) Rule 12h-3(b)(2)(ii) Rule 15d-6 Approximate number of holders of record as of the certification or notice date: 0 Pursuant to the requirements of the Securities Exchange Act of 1934, Citigroup Managed Futures LLC, as general partner of Smith Barney Principal Plus Futures Fund L.P., has caused this certification/notice to be signed on its behalf by the undersigned duly authorized person. Date: April 29, 2003 By: /s/ David J. Vogel Name: David J. Vogel Title: Chief Executive Officer Instruction: This form is required by Rules 12g-4, 12h-3 and 15d-6 of the General Rules and Regulations under the Securities Exchange Act of 1934. The registrant shall file with the Commission three copies of Form 15, one of which shall be manually signed. It may be signed by an officer of the registrant, by counsel or by any other duly authorized person. The name and title of the person signing the form shall be typed or printed under the signature. Willkie Farr & Gallagher 787 Seventh Avenue New York, N.Y. 10019 April 29, 2003 Securities and Exchange Commission EDGAR Filer Support Washington, D.C. 20549 RE: Smith Barney Principal Plus Futures Fund L.P. Termination of Registration File No. 0-28350 Ladies and Gentlemen: On behalf of Smith Barney Principal Plus Futures Fund L.P. (the "Partnership") I am transmitting herewith for filing, pursuant to Rules 12g-4(a)(1)(i) and 12h-3(b)(1)(i), one Form 15 in order to terminate the registration of the Partnership. Should you have any questions regarding this matter, please telephone me at (212) 728-8727. Very truly yours, /s/ Rita M. Molesworth Rita M. Molesworth Encl. Smith Barney Principal PLUS Futures Fund L.P. (Partnership in Liquidation) Financial Statements for the period from January 1, 2003 to February 17, 2003 (termination of operations) CITIGROUP MANAGED FUTURES LLC To The Limited Partners of Smith Barney Principal PLUS Futures Fund L.P. To the best of the knowledge and belief of the undersigned, the information contained herein is accurate and complete. By:/s/Daniel R. Mcauliffe, Jr. Daniel R. McAuliffe, Jr. Chief Financial Officer and Director Citigroup Managed Futures LLC General Partner, Smith Barney Principal PLUS Futures Fund L.P. Citigroup Managed Futures LLC 388 Greenwich Street 7th Floor New York, N.Y. 10013 212-723-5424 Report of Independent Auditors To the Partners of Smith Barney Principal PLUS Futures Fund L.P. (Partnership in Liquidation): We have audited the accompanying statement of financial condition of Smith Barney Principal PLUS Futures Fund L.P. (Partnership in Liquidation) (the Partnership), as of February 17, 2003 (termination of operations) and December 31, 2002, and the related statements of income and expenses, and partners' capital for the period from January 1, 2003 to February 17, 2003 and the year ended December 31, 2002. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of the Partnership for the year ended December 31, 2001 were audited by other auditors whose report dated February 28, 2002 expressed an unqualified opinion on those statements. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As described in Note 8 to the financial statements, during 2003, the Partnership announced its intention to dissolve the Partnership. Accounting principles generally accepted in the United States of America require that an entity that no longer intends to operate as a going-concern use the liquidation basis of accounting. As a result, the Partnership changed its basis of accounting, effective January 1, 2003, from the going concern basis to a liquidation basis. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Smith Barney Principal PLUS Futures Fund L.P. (Partnership in Liquidation) as of February 17, 2003 and December 31, 2002 and the results of its operations and changes in its partners' capital for the period from January 1, 2003 to February 17, 2003 and the year ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of America on the basis described in the preceding paragraph. KPMG LLP New York, New York April 18, 2003 Report of Independent Accountants To the Partners of Smith Barney Principal PLUS Futures Fund L.P.: In our opinion, the accompanying statements of income and expenses and partners' capital present fairly, in all material respects, the results of the Smith Barney Principal PLUS Futures Fund L.P.'s operations for the year ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of the General Partner; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the management of the General Partner, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York February 28, 2002 Smith Barney Principal PLUS Futures Fund L.P. Statements of Financial Condition February 17, 2003 (termination of operations) and December 31, 2002
2003** 2002 Assets: Equity in commodity futures trading account: Cash (restricted $0 and $907,467 in 2003 and 2002, respectively) (Note 3c) $12,088,221 $3,081,887 Net unrealized (depreciation) appreciation on open positions* (1,717) 469,604 U.S. Treasury zero coupon bonds, $8,629,000 principal amount, in 2002 due February 15, 2003, at fair value (amortized cost $8,605,473 in 2002) (Notes 1 and 2) - 8,615,194 ------------- ------------ 12,086,504 12,166,685 Receivable from SSB on sale of U.S. Treasury zero coupon bonds - 79,871 Interest receivable 1,310 2,560 ------------- ------------ $12,087,814 $12,249,116 ------------- ------------ Liabilities and Partners' Capital: Liabilities: Accrued expenses: Commissions (Note 3c) $10,148 $ 21,377 Management fees (Note 3b) 4,003 8,432 Incentive fees (Note 3b) 26,260 19,750 Professional fees 51,761 43,361 Other 6,860 5,010 Redemptions payable (Note 5) - 111,619 ------------- ------------ 99,032 209,549 Partners' Capital (Notes 1 and 5): General Partner, 376 Unit equivalents outstanding in 2003 and 2002 522,399 524,610 Limited Partners, 8,253 Units of Limited Partnership Interest outstanding in 2003 and 2002 11,466,383 11,514,957 ------------- ------------ 11,988,782 12,039,567 ------------- ------------ $12,087,814 $12,249,116 =========== ==========
* Forward contracts in this balance are presented gross in the accompanying Condensed Schedule of Investments. ** Presented on a liquidation basis of accounting. See accompanying notes to financial statements. Smith Barney Principal PLUS Futures Fund L.P. Condensed Schedule of Investments February 17, 2003 (termination of operations)
Sector Contract Fair Value Metals Unrealized appreciation on forward contracts 0.03% $ 3,727 Unrealized depreciation on forward contracts (0.04)% (5,444) Total Metals (0.01)% Total forward contracts (0.01)% (1,717) --------- Total Investments (0.01)% $ (1,717) ========== Investments % of Investments Country Composition at Value at Value --------------------------------------- United Kingdom $ (1,717) 100.00% ======================================
Percentages are based on Partners' capital unless otherwise indicated See accompanying notes to financial statements Smith Barney Principal PLUS Futures Fund L.P. Condensed Schedule of Investments December 31, 2002
Sector Contract Fair Value Currencies Futures contracts purchased 1.92% $ 230,637 Futures contracts sold 0.13% 15,275 --------- Total futures contracts 2.05% 245,912 Unrealized appreciation on forward contracts 0.38% 46,627 Unrealized depreciation on forward contracts (0.12)% (14,601) --------- Total forward contracts 0.26% 32,026 --------- Total Currencies 2.31% 277,938 Energy Futures contracts purchased 0.18% 21,911 Futures contracts sold 0.00%* 410 ------- Total Energy 0.18% 22,321 Total Interest Rates U.S. 0.52% Futures contracts purchased 0.52% 62,100 -------- Total Interest Rates Non-U.S 0.62% Futures contracts purchased 0.62% 74,608 --------- Metals Futures contracts purchased (0.03)% (3,015) Unrealized appreciation on forward contracts 0.34% 40,849 Unrealized depreciation on forward contracts (0.22)% (26,632) --------- Total forward contracts 0.12% 14,217 --------- Total Metals 0.09% 11,202 --------- Total Grains 0.08% Futures contracts sold 0.08% 9,972 --------- Total Indices 0.10% Futures contracts sold 0.10% 11,463 --------- Total Fair Value of Future and Forward Positions 3.90% 469,604 --------- Total U.S. Treasury Zero Coupon Bonds 71.56% U.S. Treasury Zero Coupon Bonds, $8,629,000 principal amount 2/15/2003 (amortized cost $8,605,473) 71.56% 8,615,194 --------- Total Investments 75.46% $9,084,798 ========= Investments % of Investments Country Composition at Value at Value ------------------------- ------------------------------------------ Australia $(662) (0.01)% Canada 380 0.00* Germany 61,818 0.68 Hong Kong 3,661 0.04 Japan 5,181 0.06 Spain 2,378 0.03 United Kingdom 33,732 0.37 United States 8,978,310 98.83 ---------------------------------- $9,084,798 100.00% ==================================
Percentages are based on Partners' capital unless otherwise indicated *Due to rounding See accompanying notes to financial statements Smith Barney Principal PLUS Futures Fund L.P. Statements of Income and Expenses for the period from January 1, 2003 to February 17, 2003 (termination of operations) and for the years ended December 31, 2002 and 2001
2003* 2002 2001 Income: Net gains (losses) on trading of commodity interests: Realized gains on closed positions and foreign currencies $491,865 $1,383,740 $639,616 Change in unrealized (losses) gains on open positions (471,321) 141,606 (150,853) ----------- ------------ ----------- 20,544 1,525,346 488,763 Realized (loss) gains on sale of U.S. Treasury zero coupon bonds (40,234) 16,876 40,999 Change unrealized (depreciation) appreciation on U.S. Treasury zero coupon bonds (9,721) (309,686) 179,307 Interest income (Notes 2d and 3c) 67,681 556,588 650,762 ----------- ------------ ----------- 38,270 1,789,124 1,359,831 Expenses: Brokerage commissions including clearing fees of $2,284, $21,342 and $19,702, respectively (Note 3c) 40,193 271,564 247,193 Management fees (Note 3b) 12,352 88,522 75,292 Incentive fees (Note 3b) 26,260 257,914 69,802 Professional fees 8,400 50,792 46,026 Other expenses 1,850 5,759 9,432 ----------- ------------ ----------- 89,055 674,551 447,745 ----------- ------------ ----------- Net income (loss) $(50,785) $1,114,573 $912,086 ========= ========= ========= Net income (loss) per Unit of Limited Partnership Interest and General Partner Unit equivalent (Notes 1 and 6) $(5.88) $119.68 $87.28 ========= ========= =========
* Presented on a liquidation basis of accounting. See accompanying notes to financial statements. Smith Barney Principal PLUS Futures Fund L.P. Statements of Partners' Capital for the period from January 1, 2003 to February 17, 2003 (termination of operations) and for the years ended December 31, 2002 and 2001
Limited General Partners Partner Total Partners' capital at December 31, 2000 $12,699,134 $446,793 $13,145,927 Net Income 879,268 32,818 912,086 Redemption of 1,429 Units of Limited Partnership Interest (1,769,289) -- (1,769,289) ------------ ------------ ------------- Partners' capital at December 31, 2001 11,809,113 479,611 12,288,724 Net Income 1,069,574 44,999 1,114,573 Redemption of 1,005 Units of Limited Partnership Interest (1,363,730) -- (1,363,730) ------------ ------------ ------------- Partners' capital at December 31, 2002 11,514,957 524,610 12,039,567 Net loss* (48,574) (2,211) (50,785) ------------ ------------ ------------- Partners' capital at February 17, 2003* $11,466,383 $522,399 $11,988,782 =========== =========== ==========
* Presented on a liquidation basis of accounting. See accompanying notes to financial statements. Smith Barney Principal PLUS Futures Fund L.P. (Partnership in Liquidation) Notes to Financial Statements 1. Partnership Organization: Smith Barney Principal PLUS Futures Fund L.P. (the "Partnership") is a limited partnership which was initially organized on January 25, 1993 under the partnership laws of the State of New York and was capitalized on April 12, 1995. No activity occurred between January 25, 1993 and April 12, 1995. The Partnership engages in the speculative trading of a diversified portfolio of commodity interests including futures contracts, options and forward contracts. The commodity interests that are traded by the Partnership are volatile and involve a high degree of market risk. The Partnership maintained a portion of its assets in principal amounts stripped from U.S. Treasury Bonds under the Treasury's STRIPS program which matured on February 15, 2003 ("Zero Coupons"). The Partnership, pursuant to the Limited Partnership Agreement, terminated on February 17, 2003. As a result, the Partnership changed the basis of accounting with effect to the period ending February 17, 2003 from the going concern basis to a liquidation basis. Liquidation basis accounting requires the Partnership to record assets and liabilities at value to be achieved in liquidation (see Note 8). Smith Barney Futures Management LLC acts as the general partner (the "General Partner") of the Partnership. The Partnership's commodity broker is Salomon Smith Barney Inc. ("SSB"). SSB is an affiliate of the General Partner. The General Partner is wholly owned by Salomon Smith Barney Holdings Inc. ("SSBHI"), which is the sole owner of SSB. SSBHI is a wholly owned subsidiary of Citigroup Inc. The General Partner and each limited partner share in the profits and losses of the Partnership in proportion to the amount of partnership interest owned by each except that no limited partner shall be liable for obligations of the Partnership in excess of their initial capital contribution and profits, if any, net of distributions. The following notes relate to the Partnership while it was in operation. 2. Accounting Policies: a. All commodity interests (including derivative financial instruments and derivative commodity instruments) are used for trading purposes. The commodity interests are recorded on trade date and open contracts are recorded in the statement of financial condition at fair value on the last business day of the year, which represents market value for those commodity interests for which market quotations are readily available. Investments in commodity interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the last business day of the year. Realized gains (losses) and changes in unrealized gains (losses) on open positions are recognized in the period in which the contract is closed or the changes occur and are included in net gains (losses) on trading of commodity interests. b. The Partnership may purchase and write (sell) options. An option is a contract allowing, but not requiring, its holder to buy (call) or sell (put) a specific or standard commodity or financial instrument at a specified price during a specified time period. The option premium is the total price paid or received for the option contract. When the Partnership writes an option, the premium received is recorded as a liability in the statement of financial condition and marked to market daily. When the Partnership purchases an option, the premium paid is recorded as an asset in the statement of financial condition and marked to market daily. c. Income taxes have not been provided as each partner is individually liable for the taxes, if any, on their share of the Partnership's income and expenses. d. The original issue discount on the Zero Coupons is being amortized over their life using the interest method and is included in interest income. e. Zero Coupons are recorded in the statement of financial condition at fair value. Realized gain (loss) on the sale of Zero Coupons is determined on the amortized cost basis of the Zero Coupons at the time of sale. f. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 3. Agreements: a. Limited Partnership Agreement: The General Partner administers the business and affairs of the Partnership including selecting one or more advisors to make trading decisions for the Partnership. b. Management Agreements: The General Partner, on behalf of the Partnership, has entered into a Management Agreement with Tucson Asset Management Inc., Potomac Portfolios LLC and Quest Partners LLC (collectively, the "Advisors"), which provides that the Advisors have sole discretion in determining the investment of the assets of the Partnership allocated to each Advisor by the General Partner. As compensation for services, the Partnership is obligated to pay a monthly management fee of 1/6 of 1% (2% per year) of 135% of month-end Net Assets allocated to each Advisor. Month-end Net Assets, for the purpose of calculating management fees are Net Assets, as defined in the Limited Partnership Agreement, (excluding the fair value of the U.S. Treasury zero coupon bonds), prior to the reduction of redemptions and incentive fees. The Management Agreement was effective until February 17, 2003, the date the Partnership terminated operations. The Partnership will also pay an incentive fee payable quarterly equal to 20% of New Trading Profits, as defined in the Management Agreement. On July 12, 2002 Quest Partners LLC was added as an Advisor to the Partnership and on July 23, 2002 Potomac Portfolios LLC was added as an Advisor to the Partnership. c. Customer Agreement: The Partnership has entered into a Customer Agreement with SSB whereby SSB provides services which include, among other things, the execution of transactions for the Partnership's account in accordance with orders placed by the Advisors. Prior to March 1, 2001 the Partnership was obligated to pay a monthly brokerage fee to SSB equal to 7/12 of 1 % of month-end Net Assets (7% per year) in lieu of brokerage commissions on a per trade basis. Effective March 1, 2001, the Partnership is obligated to pay a monthly brokerage fee to SSB equal to 5/12 of 1% of 135% of month-end Net Assets (5% per year) in lieu of brokerage commissions on a per trade basis. Month-end Net Assets, for the purpose of calculating commissions are Net Assets, as defined in the Limited Partnership Agreement, (excluding the fair value of the U.S. Treasury zero coupon bonds), prior to the reduction of all liabilities of the Partnership. A portion of this fee is paid to employees of SSB who have sold Units of the Partnership. This fee does not include exchange, clearing, user, give-up, floor brokerage and National Futures Association fees which will be borne by the Partnership. All of the Partnership's assets are deposited in the Partnership's account at SSB. The Partnership maintains a portion of these assets in Zero Coupons and a portion in cash. The Partnership's cash is deposited by SSB in segregated bank accounts, to the extent required by Commodity Futures Trading Commission regulations. At February 17, 2003, no cash was held for margin requirements. At December 31, 2002, the amount of cash held for margin requirements was $907,467. SSB will pay the Partnership interest on 80% of the average daily equity maintained in cash in its account during each month at a 30-day U.S. Treasury bill rate determined weekly by SSB based on the average noncompetitive yield on 3-month U.S. Treasury bills maturing in 30 days from the date on which such weekly rate is determined. The Customer Agreement between the Partnership and SSB gives the Partnership the legal right to net unrealized gains and losses. The Customer Agreement may be terminated by either party; however, it was terminated on February 17, 2003, the date the Partnership terminated operations. 4. Trading Activities: The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Partnership's trading activities are shown in the statement of income and expenses. All of the commodity interests owned by the Partnership are held for trading purposes. The average fair value of these commodity interests, including options thereon, if applicable, at February 17, 2003 and December 31, 2002, based on a monthly calculation, was $127,461 and $257,804, respectively. 5. Distributions and Redemptions: Distributions of profits, if any, will be made at the sole discretion of the General Partner. On 10 days notice to the General Partner, a limited partner may require the Partnership to redeem their Units at its Redemption Net Asset Value as of the last day of a quarter. 6. Financial Highlights: Changes in the net asset value per Unit of Partnership interest for the period from January 1, 2003 to February 17, 2003 (termination of operations) and for the years ended December 31, 2002 and 2001 were as follows:
2003 2002 2001 Net realized and unrealized gains (losses)* $(2.27) $134.46 $24.69 Realized and unrealized appreciation (depreciation) on Zero Coupons (5.79) (32.37) 20.35 Interest income 7.85 61.45 61.28 Expenses** (5.67) (43.86) (19.04) ---------- ---------- ---------- (Decrease) increase for period (5.88) 119.68 87.28 Net asset value per Unit, beginning of period 1,395.24 1,275.56 1,188.28 ---------- ---------- ---------- Net asset value per Unit, end of period $1,389.36 $1,395.24 $1,275.56 ========= ========= ========= * Includes brokerage commissions **Excludes brokerage commissions Ratios to average net assets: ***** Net investment income before incentive fees*** 0.3% 1.1% 2.1% Incentive fees (1.7)% (2.1)% (0.5)% ------- ---- ----- Net investment income (loss) after incentive fees (1.4)% (1.0)% 1.6% ===== ===== ===== Net income (loss) before incentive fees**** (1.6)% 11.3% 7.6% Incentive fees**** (1.7)% (2.1)% (0.5)% ------- ---- ----- Net income (loss) after incentive fees**** (3.3)% 9.2% 7.1% ===== ====== ===== Operating expenses 4.2% 3.4% 3.0% Incentive fees 1.7% 2.1% 0.5% ------- ---- ----- Total expenses 5.9% 5.5% 3.5% ===== ===== ===== Total return: Total return before incentive fees (0.2)% 11.7% 7.9% Incentive fees (0.2)% (2.3)% (0.5)% ------- ---- ----- Total return after incentive fees (0.4)% 9.4% 7.4% ===== ===== =====
*** Interest income less total expenses (exclusive of incentive fees). **** Supplemental information not required. *****Annualized for 2003. The above ratios may vary for individual investors based on the timing of capital transactions during the year. 7. Financial Instrument Risks: In the normal course of its business, the Partnership is party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include forwards, futures and options, whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash flows, to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange or over-the-counter ("OTC"). Exchange traded instruments are standardized and include futures and certain option contracts. OTC contracts are negotiated between contracting parties and include forwards and certain options. Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange traded instruments because of the greater risk of default by the counterparty to an OTC contract. Market risk is the potential for changes in the value of the financial instruments traded by the Partnership due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the volatility and liquidity in the markets in which the related underlying assets are traded. Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. Credit risk with respect to exchange traded instruments is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transactions. The Partnership's risk of loss in the event of counterparty default is typically limited to the amounts recognized in the statement of financial condition and not represented by the contract or notional amounts of the instruments. The Partnership has credit risk and concentration risk because the sole counterparty or broker with respect to the Partnership's assets is SSB. The General Partner monitors and controls the Partnership's risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership is subject. These monitoring systems allow the General Partner to statistically analyze actual trading results with risk-adjusted performance indicators and correlation statistics. In addition, on-line monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions. 8. Liquidation of Partnership: In accordance with the Limited Partnership Agreement, the Partnership's operations were terminated on February 17, 2003. Distribution of the Partnership's capital was made on February 28, 2003, subsequent to the termination of operations. At February 17, 2003, the Partnership held open forward contracts which were required to be held to maturity (May 9, 2003). Therefore, the Partnership has entered into offsetting contracts at the same price and settlement date to fully hedge these positions. As a result of the liquidation, the Partnership changed the basis of accounting with effect to January 1, 2003, from the going concern basis to a liquidation basis. On February 28, 2003 the final proceeds were credited to the Limited Partners' securities account.