Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2014

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

7.  Fair Value Measurements and Disclosures

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, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
		$		$		$			$
Assets
Futures		873,317		–		n/	a		873,317
Forwards		111,529		1,424,500		n/	a		1,536,029
Total Assets		984,846		1,424,500		n/	a		2,409,346
Liabilities
Futures		134,615		–		n/	a		134,615
Forwards		75,657		905,831		n/	a		981,488
Total Liabilities		210,272		905,831		n/	a		1,116,103
Unrealized currency loss									(2,400,799	)
*Net fair value		774,574		518,669		n/	a		(1,107,556	)

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (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									(2,388,713	)
*Net fair value		931,799		231,333		n/	a		(1,225,581	)

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

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Charter Campbell.

Charter Aspect

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)	Total
	$		$		$	$
Assets
Futures		2,692,207		–	n/a		2,692,207
Forwards		154,658		860,692	n/a		1,015,350
Total Assets		2,846,865		860,692	n/a		3,707,557
Liabilities
Futures		266,772		–	n/a		266,772
Forwards		230,638		465,702	n/a		696,340
Total Liabilities		497,410		465,702	n/a		963,112
Unrealized currency gain							904,006
*Net fair value		2,349,455		394,990	n/a		3,648,451

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities  (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							857,065
*Net fair value		1,701,572		265,254	n/a		2,823,891

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

During the twelve months ended December 31, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Charter Aspect.

Charter WNT

December 31, 2014	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities  (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)	Total
	$		$			$	$
Assets
Futures		1,905,937		–		n/a		1,905,937
Forwards		107,239		157,379		n/a		264,618
Total Assets		2,013,176		157,379		n/a		2,170,555
Liabilities
Futures		511,243		–		n/a		511,243
Forwards		146,237		346,494		n/a		492,731
Total Liabilities		657,480		346,494		n/a		1,003,974
Unrealized currency loss								(97,502	)
*Net fair value		1,355,696		(189,115	)	n/a		1,069,079

December 31, 2013	Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities  (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

* 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, 2014 and 2013, there were no Level 3 assets and liabilities, and there were no transfers of assets or liabilities between Level 1 and Level 2 for Charter WNT.