Fair Value Measurements and Disclosures

6 Months Ended

Jun. 30, 2012

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

6.  Fair Value Measurements and Disclosures

Effective January 1, 2012, the Partnership adopted Accounting Standards Update ("ASU") 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the accounting principles generally accepted in the United States of America ("U.S. GAAP") and International Financial Reporting Standards ("IFRS").  The amendments within this ASU change the

wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements to eliminate unnecessary wording differences between U.S. GAAP and IFRS.  However, some of the amendments clarify the FASB's intent about the application of existing fair value measurement requirements and other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements.  This new guidance did not have a significant impact on the Partnership's financial statements.

Financial instruments are carried at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  Assets and liabilities carried at fair value are classified and disclosed in the following three levels: Level 1 - unadjusted quoted market prices in active markets for identical assets and liabilities; Level 2 - inputs other than unadjusted quoted market prices that are observable for the asset or liability, either directly or indirectly (including unadjusted quoted market prices for similar investments, interest rates, credit risk); and Level 3 - unobservable inputs for the asset or liability (including the Partnership's own assumptions used in determining the fair value of investments).

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.

The Partnership's assets and liabilities measured at fair value on a recurring basis are summarized in the following tables by the type of inputs applicable to the fair value measurements.

June 30, 2012	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	$			$			$		$
Assets
Futures		646,738			-			n/a		646,738
Total Assets		646,738			-			n/a		646,738
Liabilities
Futures		1,334,476			-			n/a		1,334,476
Forwards		-			925,341			n/a		925,341
Total Liabilities		1,334,476			925,341			n/a		2,259,817
Unrealized currency loss										(2,404,698	)
*Net fair value		(687,738	)		(925,341	)		n/a		(4,017,777	)

December 31, 2011	Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	$		$		$		$
Assets
Futures		1,856,568		-		n/a		1,856,568
Forwards		-		1,386,487		n/a		1,386,487
Total Assets		1,856,568		1,386,487		n/a		3,243,055
Liabilities
Futures		704,278		-		n/a		704,278
Forwards		-		56,077		n/a		56,077
Total Liabilities		704,278		56,077		n/a		760,355
Unrealized currency loss								(2,392,751	)
*Net fair value		1,152,290		1,330,410		n/a		89,949

* This amount comprises the "Total net unrealized gain (loss) on open contracts" on the Statements of Financial Condition.

During the period January 1, 2012 to June 30, 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.