Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2013

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

7.  Fair Value Measurements and Disclosures

On October 1, 2012, the FASB issued ASU 2012-04, “Technical Corrections and Improvements”, which makes minor technical corrections and clarifications to ASC 820, “Fair Value Measurements and Disclosures”. When the FASB issued Statement 157 (codified in ASC 820), it conformed the use of the term “fair value” in certain pre-Codification standards but not others. ASU 2012-04 conforms the term’s use throughout the ASC “to fully reflect the fair value measurement and disclosure requirements” of ASC 820. The ASU also amends the requirements that must be met for an investment company to qualify for the exemption from presenting a statement of cash flows. Specifically, it eliminates the requirements that substantially all of an entity’s investments be carried at “market value” and that the investments be highly liquid. Instead, it requires substantially all of the entity’s investments to be carried at “fair value” and classified as Level 1 or Level 2 measurements under ASC 820.

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 and credit risk); and Level 3 — unobservable inputs for the asset or liability (including the Partnerships’ 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 Partnerships’ assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and consideration of factors specific to the investment.

The Partnerships’ 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.

Charter Campbell

December 31, 2013	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		1,306,032		–	n/a		1,306,032
Forwards		–		528,118	n/a		528,118
Total Assets		1,306,032		528,118	n/a		1,834,150
Liabilities
Futures		374,233		–	n/a		374,233
Forwards		–		296,785	n/a		296,785
Total Liabilities		374,233		296,785	n/a		671,018
Unrealized currency loss					n/a		(2,388,713	)
*Net fair value		931,799		231,333	n/a		(1,225,581	)

December 31, 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		799,204		–	n/a		799,204
Forwards		–		1,179,980	n/a		1,179,980
Total Assets		799,204		1,179,980	n/a		1,979,184
Liabilities
Futures		420,203		–	n/a		420,203
Forwards		–		274,802	n/a		274,802
Total Liabilities		420,203		274,802	n/a		695,005
Unrealized currency loss							(2,389,680	)
*Net fair value		379,001		905,178	n/a		(1,105,501	)

* This amount comprises of the “Net unrealized loss on open contracts” on the Statements of Financial Condition.

During the twelve months ended December 31, 2013 and 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.

Charter Aspect

December 31, 2013	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		2,359,953		–	n/a		2,359,953
Forwards		–		461,172	n/a		461,172
Total Assets		2,359,953		461,172	n/a		2,821,125
Liabilities
Futures		658,381		–	n/a		658,381
Forwards		–		195,918	n/a		195,918
Total Liabilities		658,381		195,918	n/a		854,299
Unrealized currency gain					n/a		857,065
*Net fair value		1,701,572		265,254	n/a		2,823,891

December 31, 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		1,817,113		–			1,817,113
Forwards		–		634,871	n/a		634,871
Total Assets		1,817,113		634,871	n/a		2,451,984
Liabilities
Futures		1,102,329		–	n/a		1,102,329
Forwards		–		535,154	n/a		535,154
Total Liabilities		1,102,329		535,154	n/a		1,637,483
Unrealized currency gain					n/a		802,973
*Net fair value		714,784		99,717	n/a		1,617,474

* This amount comprises of the “Net unrealized gain on open contracts” on the Statements of Financial Condition.

During the twelve months ended December 31, 2013 and 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.

Charter WNT

December 31, 2013	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		2,391,563		–	n/a		2,391,563
Forwards		–		120,687	n/a		120,687
Total Assets		2,391,563		120,687	n/a		2,512,250
Liabilities
Futures		576,554		–	n/a		576,554
Forwards		–		106,402	n/a		106,402
Total Liabilities		576,554		106,402	n/a		682,956
Unrealized currency loss							(37,574	)
*Net fair value		1,815,009		14,285	n/a		1,791,720

December 31, 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		1,843,698		–	n/a		1,843,698
Forwards		–		134,205	n/a		134,205
Total Assets		1,843,698		134,205	n/a		1,977,903
Liabilities
Futures		1,188,296		–	n/a		1,188,296
Forwards		–		58,704	n/a		58,704
Total Liabilities		1,188,296		58,704	n/a		1,247,000
Unrealized currency loss							(43,191	)
*Net fair value		655,402		75,501	n/a		687,712

* This amount comprises of the “Total net unrealized gain on open contracts” on the Statements of Financial Condition.

During the twelve months ended December 31, 2013 and 2012, there were no Level 3 assets and liabilities and there were no transfers of assets or liabilities between Level 1 and Level 2.