10-Q

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 March 31, 2013 or

o           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: 000-26282

MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

(Exact name of registrant as specified in its charter)

	Delaware	13-3775071
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Ceres Managed Futures LLC
522 Fifth Avenue, 14th Floor
New York, NY		10036
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (855) 672-4468

(Former name, former address and former fiscal year, if changed since last report)

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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x  No o

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 o

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 the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes 0  No T

As of March 31, 2013,  3,268,634.683 Limited Partnership Redeemable Units were outstanding.

MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

March 31, 2013

	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Statements of Financial Condition as of March 31, 2013 and December 31, 2012	2
	Condensed Schedule of Investments as of March 31, 2013	3
	Condensed Schedule of Investments as of December 31, 2012	4
	Statements of Income and Expenses for the Quarters Ended March 31, 2013 and 2012	5
	Statements of Changes in Partners’ Capital for the Quarters Ended March 31, 2013 and 2012	6
	Notes to Financial Statements	7-25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26-33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33-40
Item 4.	Controls and Procedures	40-41
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	42-50
Item 1A.	Risk Factors	51
Item 4.	Mine Safety Disclosures	51
Item 6.	Exhibits	51-52

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	March 31,	December 31,
	2013	2012
ASSETS	$	$
Trading Equity:
Unrestricted cash	51,792,875	57,406,016
Restricted cash	7,569,180	6,014,943
Total cash	59,362,055	63,420,959
Net unrealized gain on open contracts (MS&Co.)	1,787,382	1,617,474
Total Trading Equity	61,149,437	65,038,433
Interest receivable (MS&Co)	3,633	1,952
Total Assets	61,153,070	65,040,385
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Redemptions payable	1,273,110	1,338,507
Accrued brokerage fees (MS&Co.)	299,541	321,906
Accrued management fees	74,885	80,476
Total Liabilities	1,647,536	1,740,889
Partners’ Capital:
Limited Partners (3,268,634.683 and 3,508,314.701 Units, respectively)	58,761,997	62,561,958
General Partner (41,359.223 and 41,359.223 Units, respectively)	743,537	737,538
Total Partners’ Capital	59,505,534	63,299,496
Total Liabilities and Partners’ Capital	61,153,070	65,040,385
NET ASSET VALUE PER UNIT	17.98	17.83

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

CONDENSED SCHEDULE OF INVESTMENTS

March 31, 2013 (Unaudited)

Futures and Forward Contracts Purchased	Net unrealized gain/(loss) on open contracts	% of             Partners’ Capital
	$
Commodity	218,854	0.37
Equity	124,795	0.20
Foreign currency	(48,120)	(0.08)
Interest rate	617,241	1.04
Total Futures and Forward Contracts Purchased	912,770	1.53
Futures and Forward Contracts Sold
Commodity	695,818	1.17
Equity	(2,704)	–  (1)
Foreign currency	(357,696)	(0.60)
Interest rate	(284,184)	(0.48)
Total Futures and Forward Contracts Sold	51,234	0.09
Unrealized Currency Gain	823,378	1.38
Net fair value	1,787,382	3.00

(1)  Amounts less than 0.005%

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

CONDENSED SCHEDULE OF INVESTMENTS

December 31, 2012

Futures and Forward Contracts Purchased	Net unrealized gain/(loss) on open contracts	% of              Partners’ Capital
	$
Commodity	(162,622)	(0.26)
Equity	696,764	1.10
Foreign currency	(141,431)	(0.22)
Interest rate	43,678	0.07
Total Futures and Forward Contracts Purchased	436,389	0.69
Futures and Forward Contracts Sold
Commodity	131,102	0.21
Equity	(7,075)	(0.01)
Foreign currency	261,013	0.41
Interest rate	(6,928)	(0.01)
Total Futures and Forward Contracts Sold	378,112	0.60
Unrealized Currency Gain	802,973	1.27
Net fair value	1,617,474	2.56

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

STATEMENTS OF INCOME AND EXPENSES

(Unaudited)

	For the Quarters Ended March 31,
	2013	2012
	$	$
INVESTMENT INCOME
Interest income (MS&Co. & Morgan Stanley Wealth Management)	10,299	9,334
EXPENSES
Brokerage fees (MS&Co.)	933,734	1,405,147
Management fees	233,434	468,382
Total Expenses	1,167,168	1,873,529
NET INVESTMENT LOSS	(1,156,869)	(1,864,195)
TRADING RESULTS
Trading profit (loss):
Net realized	1,524,745	3,633,938
Net change in unrealized	169,908	(1,629,679)
Total Trading Results	1,694,653	2,004,259
NET INCOME	537,784	140,064
NET INCOME ALLOCATION
Limited Partners	531,785	139,019
General Partner	5,999	1,045
NET INCOME PER UNIT *
Limited Partners	0.15	0.02
General Partner	0.15	0.02
	Units	Units
WEIGHTED AVERAGE NUMBER
OF UNITS OUTSTANDING	3,461,216.178	4,417,756.326

* Based on change in net asset value per Unit.

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

For the Quarters Ended March 31, 2013 and 2012

(Unaudited)

	Units of
	Partnership	Limited	General
	Interest	Partners	Partner	Total
		$	$	$
Partners’ Capital,
December 31, 2012	3,549,673.924	62,561,958	737,538	63,299,496
Net Income	–	531,785	5,999	537,784
Redemptions	(239,680.018)	(4,331,746)	–	(4,331,746)
Partners’ Capital,
March 31, 2013	3,309,993.906	58,761,997	743,537	59,505,534
Partners’ Capital,
December 31, 2011	4,476,439.147	92,674,799	1,070,769	93,745,568
Net Income	–	139,019	1,045	140,064
Redemptions	(205,507.419)	(4,356,499)	–	(4,356,499)
Partners’ Capital,
March 31, 2012	4,270,931.728	88,457,319	1,071,814	89,529,133

The accompanying notes are an integral part of these financial statements.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS

March 31, 2013

(Unaudited)

The unaudited financial statements contained herein include, in the opinion of management, all adjustments necessary for a fair presentation of the financial condition and results of operations of Morgan Stanley Smith Barney Charter Aspect L.P. (the “Partnership”).  The financial statements and condensed notes herein should be read in conjunction with the Partnership’s Annual Report on Form   10-K for the fiscal year ended December 31, 2012 (the “Form 10-K”).

1.  Organization

Morgan Stanley Smith Barney Charter Aspect L.P. is a Delaware limited partnership organized in 1993 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, “Futures Interests”) (refer to Note 4. Financial Instruments).  The Partnership is one of the Morgan Stanley Charter series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Charter WNT L.P., and Morgan Stanley Smith Barney Charter Campbell L.P. (collectively, the “Charter Series”).

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Ceres Managed Futures LLC, a Delaware limited liability company, acts as a general partner (“Ceres” or the “General Partner”) and commodity pool operator for the Partnership.  Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC (“MSSBH”).  MSSBH is majority-owned indirectly by Morgan Stanley and minority-owned indirectly by Citigroup Inc.  indirectly by Morgan Stanley and minority-owned indirectly by Citigroup Inc.  (“Citigroup”).  Morgan Stanley expects to purchase, subject to regulatory approvals, Citigroup’s remaining interest in MSSBH.  Morgan Stanley Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management (“Morgan Stanley Wealth Management”).  This entity, where the Partnership continues to maintain a cash account, previously acted as a non-clearing commodity broker for the Partnership.  The clearing commodity broker is Morgan Stanley & Co. LLC (“MS&Co.”).   MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts. Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.  MS&Co. is wholly-owned subsidiary of Morgan Stanley.  Aspect Capital Limited (“Aspect” or the “Trading Advisor”) is the trading advisor to the Partnership.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2.   Financial Highlights

Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

                  For the Quarters Ended March 31,

	2013	2012
Per Unit operating performance:
Net asset value, January 1:	$     17.83	$     20.94
Interest Income	–   (3)	–   (3)
Expenses	(0.34)	(0.43)
Realized/Unrealized Income (1 )	0.49	0.45
Net Income	0.15	0.02
Net asset value, March 31:	$     17.98	$     20.96
Ratios to average net assets:
Net Investment Loss (2)	(7.7)%	(8.1)%
Expenses before  Incentive Fees (2)	7.8 %	8.2 %
Expenses after Incentive Fees (2)	7.8 %	8.2 %
Net Income (2)	3.6%	0.6%
Total return before incentive fees	0.8%	0.1%
Total return after incentive fees	0.8%	0.1%

 (1) Realized/Unrealized Income is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

(2) Annualized (except for incentive fees if applicable).

(3) Amounts less than $0.005 per Unit.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3.  Related Party Transactions

The Partnership’s cash is on deposit in commodity brokerage accounts with Morgan Stanley.  Monthly, MS&Co. pays the Partnership interest income on 100% of the average daily equity maintained in cash in the Partnership’s account during each month at a rate equal to 80% of the monthly average of the 4-week U.S. Treasury bill discount rate.  MS&Co. retains any interest earned in excess of the interest paid by MS&Co. to the Partnership.  For purposes of such interest payments, net assets do not include monies due to the Partnership on Futures Interests that have not been received.    The Partnership pays a flat rate brokerage fee to MS&Co.

4.  Financial Instruments

The Partnership trades Futures Interests.  Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price.  Futures Interests are open commitments until settlement date, at which time they are realized.  They are valued at fair value, generally on a daily basis, and the unrealized gains and 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 on open contracts.  The resulting net change in unrealized gains and losses is reflected in the “Net change in unrealized” trading profit (loss) on open contracts from one period to the next on the Statements of Income and Expenses.  The fair value of exchange-traded futures, options and forward contracts is determined by the various futures exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period.  The fair value of foreign currency

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) of the last business day of the reporting period from various exchanges.  The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates, and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period.  Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts.  There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of exchange-traded contracts is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined.  If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.  The fair value of off-exchange-traded contracts is based on the fair value quoted by the counterparty.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership’s contracts are accounted for on a trade-date basis.  The Partnership accounts for its derivative investments as described in Note 5. Derivatives and Hedging as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).  A derivative is defined as a financial instrument or other contract that has all three of the following characteristics:

1)   a) One or more “underlyings” and b) one or more “notional amounts” or payment provisions or both;

2)   Requires no initial net investment or a smaller initial net investment than would be required for other types of contracts that would be expected to have a similar response relative to changes in market factors; and

3)   Terms that require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options contracts, and other financial instruments with similar characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a component of “Trading Equity” on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains  (Losses) on Open Contracts			Longest Maturities
Date	Exchange-Traded	Off-Exchange-Traded	Total	Exchange-Traded	Off-Exchange-Traded
	$	$	$
Mar. 31, 2013	2,188,550	(401,168)	1,787,382	Sep. 2015	Apr. 2013
Dec. 31, 2012	1,517,757	99,717	1,617,474	Jun. 2015	Jan. 2013

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract.  The Partnership has credit risk associated with counterparty nonperformance.  As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gains (losses) amounts reflected in the Partnership’s Statements of Financial Condition.  The net unrealized gains (losses) on open contracts are further disclosed gross by type of contract and corresponding fair value level in Note 6. Fair Value Measurements and Disclosures.

The Partnership also has credit risk because MS&Co. acts as the futures commission merchant or the counterparty, with respect to most of the Partnership’s assets. Exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are fair valued on a daily basis, with variations in value settled on a daily basis. MS&Co., which is acting as a commodity futures broker for the Partnership’s exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, is required, pursuant to regulations of the Commodity Futures Trading Commission (“CFTC”), to segregate from its own assets, and for the sole benefit of its commodity customers, total cash held by it with respect to exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, including an amount equal to the net unrealized gains (losses) on all open exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, which, in the aggregate, totaled $61,550,605 and $64,938,716 at March 31, 2013, and December 31, 2012, respectively.  With respect to the Partnership’s off-exchange-traded forward currency contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

the net unrealized gains (losses) on such contracts be segregated.  However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in a custody account held at MS&Co. for the benefit of MS&Co. With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform. The Partnership has a netting agreement with MS&Co.  The primary terms are based on industry standard master agreements.  This agreement, which seeks to reduce both the Partnership’s and MS&Co.’s exposure on off-exchange-traded forward currency contracts, should materially decrease the Partnership’s credit risk in the event of MS&Co.’s bankruptcy or insolvency.

The General Partner monitors and attempts to control 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 may be subject.  These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics.  In addition, online monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions.

The futures, forwards and options traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.  Gains and losses on off-exchange-traded forward currency options contracts are settled on an agreed-upon settlement date.

5.  Derivatives and Hedging

The Partnership’s objective is to profit from speculative trading in Futures Interests.  Therefore, the Trading Advisor for the Partnership will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its trading strategy.  As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures. With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

On January 1, 2013, the Partnership adopted Accounting Standards Update (“ASU”) 2011-11, “Disclosure about Offsetting Assets and Liabilities” and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”.  ASU 2011-11 created a new disclosure requirement about the nature of an entity’s rights to setoff and the related arrangements associated with its financial instruments and derivative instruments, while ASU 2013-01 clarified the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11.  Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of these disclosures is to facilitate comparison between those entities that prepare their financial statements on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”) and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). The new guidance did not have a significant impact on the Partnership’s financial statements.

The following tables summarize the valuation of the Partnership’s investments as of March 31, 2013 and December 31, 2012, respectively.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Offsetting of Derivative Assets and Liabilities as of March 31, 2013:

	Gross Amounts Recognized	Gross Amounts  Offset in the  Statement of Financial Condition	Net Amounts   Presented in the  Statement of  Financial   Condition
	$	$	$
Assets
Futures	1,383,977	(411,138)	972,839
Forwards	203,624	(263,693)	(60,069)
Total Assets	1,587,601	(674,831)	912,770
Liabilities
Futures	797,701	(405,368)	392,333
Forwards	34,132	(375,231)	(341,099)
Total Liabilities	831,833	(780,599)	51,234
Unrealized currency gain			823,378
Total net unrealized gain on
open contracts			1,787,382

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized	Gross Amounts Offset in the  Statement of Financial Condition	Net Amounts Presented in the  Statement of Financial Condition
	$	$	$
Assets
Futures	1,295,413	(720,472)	574,941
Forwards	209,506	(348,058)	(138,552)
Total Assets	1,504,919	(1,068,530)	436,389
Liabilities
Futures	521,699	(381,857)	139,842
Forwards	425,366	(187,096)	238,270
Total Liabilities	947,065	(568,953)	378,112
Unrealized currency gain			802,973
Total net unrealized gain on
open contracts			1,617,474

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long Unrealized   Gain	Long Unrealized Loss	Short Unrealized Gain	Short Unrealized Loss	Net   Unrealized Gain/(Loss)	Average number of contracts outstanding for the  three months  (absolute quantity)
	$	$	$	$	$
Commodity	267,472	(48,618)	796,441	(100,623)	914,672	980
Equity	433,639	(308,844)	1,260	(3,964)	122,091	740
Foreign currency	217,923	(266,043)	34,132	(391,828)	(405,816)	910
Interest rate	668,567	(51,326)	–	(284,184)	333,057	1,375
Total	1,587,601	(674,831)	831,833	(780,599)	964,004
Unrealized currency gain					823,378
Total net unrealized gain on open contracts					1,787,382

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long     Unrealized   Gain	Long Unrealized Loss	Short    Unrealized  Gain	Short Unrealized Loss	Net       Unrealized Gain/(Loss)	Average number of contracts outstanding for the year (absolute quantity)
	$	$	$	$	$
Commodity	146,738	(309,360)	497,636	(366,534)	(31,520)	858
Equity	731,889	(35,125)	–	(7,075)	689,689	592
Foreign currency	215,614	(357,045)	448,109	(187,096)	119,582	936
Interest rate	410,678	(367,000)	1,320	(8,248)	36,750	2,731
Total	1,504,919	(1,068,530)	947,065	(568,953)	814,501
Unrealized currency gain					802,973
Total net unrealized gain on open contracts					1,617,474

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2013 and 2012, respectively.

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2013 included in Total Trading Results:

Type of Instrument	$
Commodity	(392,179)
Equity	2,724,296
Foreign currency	243,757
Interest rate	(901,626)
Unrealized currency gain	20,405
Total	1,694,653

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013:

Trading Results	$
Net realized	1,524,745
Net change in unrealized	169,908
Total Trading Results	1,694,653

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity	3,145,899
Equity	498,448
Foreign currency	(119,871)
Interest rate	(1,467,378)
Unrealized currency loss	(52,839)
Total	2,004,259

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized	3,633,938
Net change in unrealized	(1,629,679)
Total Trading Results	2,004,259

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

6.  Fair Value Measurements and Disclosures

Effective January 1, 2012, the Partnership adopted ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and 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.

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

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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. The amendments are effective for fiscal periods beginning after December 15, 2012. The adoption of this ASU 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, and 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.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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.

March 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	2,181,677	–	n/a	2,181,677
Forwards	–	237,757	n/a	237,757
Total Assets	2,181,677	237,757	n/a	2,419,434
Liabilities
Futures	816,505	–	n/a	816,505
Forwards	–	638,925	n/a	638,925
Total Liabilities	816,505	638,925	n/a	1,455,430
Unrealized currency gain				823,378
*Net fair value	1,365,172	(401,168)	n/a	1,787,382

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	–	n/a	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				802,973
*Net fair value	714,784	99,717	n/a	1,617,474

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

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

7.  Other Pronouncements

In October 2011, the FASB issued a proposed ASU intended to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company.  Under longstanding U.S. GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company.  The primary changes being proposed by the FASB relate to which entities would be considered investment companies as well as certain disclosure and presentation requirements.  In addition to the changes to the criteria for determining whether an entity is an investment company, the FASB also proposes that an investment company would be required to consolidate another investment company if it holds a controlling financial interest in the entity.  In August 2012, the FASB updated the proposed ASU to state that entities regulated under the Investment Company Act of 1940 should qualify to be investment companies within the proposed investment company guide.  The Partnership will evaluate the impact that this proposed update would have on the financial statements once the pronouncement is issued.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8.  Restricted and Unrestricted Cash

As reflected on the Partnership’s Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forwards and options contracts and offset unrealized losses on offset London Metal Exchange positions. All of these amounts are maintained separately.  Cash that is not classified as restricted cash is therefore classified as unrestricted cash.

9.  Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as partners are individually responsible for reporting income or loss based upon their respective share of the Partnership’s revenues and expenses for income tax purposes.  The Partnership files U.S. federal and state tax returns.

The guidance issued by the FASB on income taxes clarifies the accounting for uncertainty in income taxes recognized in the Partnership's financial statements, and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken.  The Partnership has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of March 31, 2013 and December 31, 2012.  If applicable, the Partnership recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statements of Income and Expenses.  Generally, the 2009 through 2012 tax years remain subject to examination by U.S. federal and most state tax authorities.  No income tax returns are currently under examination.

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MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.

NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

10.  Subsequent Events

Management performed its evaluation of subsequent events through the date of filing, and has determined that there were no subsequent events requiring adjustment of or disclosure in the financial statements.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

As of March 31, 2013, the percentage of assets allocated to each market sector was approximately as follows: Interest Rate 26.35%; Currency 19.35%; Equity 21.81%; and Commodity  32.49%.

Liquidity.  The Partnership deposits its assets with MS&Co. as clearing commodity broker in separate futures, forward and options trading accounts established for the Trading Advisor.  Such assets are used as margin to engage in trading and may be used as margin solely for the Partnership’s trading. The assets are held in either non-interest bearing bank accounts or in securities and instruments permitted by the CFTC for investment of customer segregated or secured funds.  Since the Partnership’s sole purpose is to trade in futures, forwards and options, it is expected that the Partnership will continue to own such liquid assets for margin purposes.

The Partnership’s investment in futures, forwards and options may, from time to time, be illiquid.  Most U.S. futures exchanges limit fluctuations in prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits.”  Trades may not be executed at prices beyond the daily limit.  If the price for a particular futures or options contract has increased or decreased by an amount equal to the daily limit, positions in that futures or options contract can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading.  These market conditions could prevent the Partnership from promptly liquidating its futures or options contracts and result in restrictions on redemptions.

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There is no limitation on daily price moves in trading forward contracts on foreign currencies.  The markets for some world currencies have low trading volume and are illiquid, which may prevent the Partnership from trading in potentially profitable markets or prevent the Partnership from promptly liquidating unfavorable positions in such markets, subjecting it to substantial losses.  Either of these market conditions could result in restrictions on redemptions.  For the periods covered by this report, illiquidity has not materially affected the Partnership’s assets.

There are no known material trends, demands, commitments, events, or uncertainties at the present time that are reasonably likely to result in the Partnership’s liquidity increasing or decreasing in any material way.

As of March 31, 2013, approximately 81.00% of the Partnership’s total investment exposure is futures contracts which are exchange-traded while approximately 19.00% is forward contracts which are off-exchange traded.

Capital Resources.  The Partnership does not have, nor does it expect to have, any capital assets.  Redemptions, of units of limited partnership interest (“Unit(s)”) in the future will affect the amount of funds available for investments in futures, forwards and options in subsequent periods.  It is not possible to estimate the amount, and therefore the impact, of future outflows of Units.

There are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to, the Partnership’s capital resource arrangements at the present time.

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Off-Balance Sheet Arrangements and Contractual Obligations.  The Partnership does not have any off-balance sheet arrangements, nor does it have contractual obligations or commercial commitments to make future payments that would affect its liquidity or capital resources.

Results of Operations

General.  The Partnership’s results depend on the Trading Advisor and the ability of the Trading Advisor’s trading program to take advantage of price movements in the futures, forward and options markets.

The Trading Advisor trades the Partnership’s assets in accordance with its Diversified Program, a proprietary, systematic trading system.  The Diversified Program is a proprietary, systematic global futures trading program.  Its goal is the generation of significant long-term capital growth independent of stock and bond market returns.  This program continuously monitors price movements in a wide range of global financial, currency and commodity markets, searching for profit opportunities over periods ranging from a few hours to several months.

The Trading Advisor has designed the Diversified Program to have broad market diversification (subject to liquidity constraints).  Aspect’s quantitative resources are sufficient to enable it to design and implement a broadly diversified portfolio with a significant allocation to numerous different markets.

The Trading Advisor’s Diversified Program trades over 100 markets in the seven major sectors:  currencies, energy, metals, stock indices, bonds, agricultural commodities and interest rates

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implementing momentum strategies.  Aspect is constantly examining new liquid and uncorrelated markets to incorporate in the program with the aim of improving its reward/risk ratio and capacity.

Aspect has no market or sector preferences, believing that allowing for liquidity effects, equal profitability can be achieved in the long-term in all markets.  The key factors in determining the asset allocation are correlation and liquidity.  Correlations are analyzed at the sector, sub-sector, economic block and market levels to design a portfolio which is highly diversified.

The following presents a summary of the Partnership’s operations for the quarters ended March 31, 2013 and 2012, and a general discussion of its trading activities during each period.  It is important to note, however, that the Trading Advisor trades in various markets at different times and that prior activity in a particular market does not mean that such market will be actively traded by the Trading Advisor or will be profitable in the future.  Consequently, the results of operations of the Partnership are difficult to discuss other than in the context of the Trading Advisor’s trading activities on behalf of the Partnership during the period in question.  Past performance is no guarantee of future results.

The Partnership’s results of operations set forth in the financial statements on pages 2 through 25 of this report are prepared in accordance with U.S. GAAP, which requires the use of certain accounting policies that affect the amounts reported in these financial statements, including the following: the contracts the Partnership trades are accounted for on a trade-date basis and marked to market on a daily basis.  The difference between their original contract value and market value is recorded on the Statements of Income and Expenses as “Net change in unrealized” trading profit (loss) for open contracts, and recorded as “Net realized” trading profit (loss) when open positions are closed out.  The sum of these amounts

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constitutes the Partnership’s trading results.  The market value of a futures contract is the settlement price on the exchange on which that futures contract is traded on a particular day.  The value of a foreign currency forward contract is based on the spot rate as of approximately 3:00 P.M. (E.T.) the close of the business day.  Interest income, as well as management fees, incentive fees, and brokerage fees of the Partnership are recorded on an accrual basis.

Ceres believes that, based on the nature of the operations of the Partnership, no assumptions relating to the application of critical accounting policies other than those presently used could reasonably affect reported amounts.

For the Quarter Ended March 31, 2013

The Partnership recorded total trading results including interest income totaling $1,704,952 and expenses totaling $1,167,168, resulting in net income of $537,784 for the quarter ended March 31, 2013.  The Partnership’s net asset value per Unit increased from $17.83 at December 31, 2012 to $17.98 at March 31, 2013.

During the first quarter, the Partnership posted a gain in Net Asset Value per Unit as profits in stock indices, agriculturals, and currencies offset losses in interest rates, energies, and metals. The most significant gains were recorded within the global stock index markets during January from long positions in U.S., Pacific Rim, and European equity index futures as prices moved higher after German business confidence improved, economic reports in the U.S. and China beat estimates, and a weaker yen boosted Japan’s exports. Additional gains were experienced within this sector during March from long positions in U.S. and Asian equity index futures as prices advanced after U.S.

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jobless claims unexpectedly dropped and amid speculation the Bank of Japan would announce further stimulus. Within the agricultural complex, gains were achieved during February from short positions in wheat futures as prices traded near the lowest level in almost eight months after snowfall in the U.S. Great Plains eased drought concerns. Within the currency markets, gains were achieved primarily during January from short positions in the Japanese yen versus the U.S. dollar and euro as the value of the yen declined on speculation the Bank of Japan will ease monetary policy further.

A portion of the Partnership’s gains for the quarter was offset by losses incurred within the global interest rate sector during January from long positions in U.S. and European fixed income futures as prices fell amid positive economic reports and after European Central Bank President Mario Draghi said the euro-area economy should gradually recover this year. Losses were incurred within the energy sector during February from long futures positions in crude oil and its related products as prices fell sharply following news that the U.S. economy grew less than economists expected and as manufacturing expanded less than forecast in China and contracted in Europe. Within the metals markets, losses were recorded during February from long positions in zinc and lead futures as prices moved lower amid concern of weak European demand.

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For the Quarter Ended March 31, 2012

The Partnership recorded total trading results including interest income totaling $2,013,593 and expenses totaling $1,873,529, resulting in net income of $140,064 for the quarter ended March 31, 2012.  The Partnership’s net asset value per Unit increased from $20.94 at December 31, 2011 to $20.96 at March 31, 2012.

During the first quarter, the Partnership posted a gain in net asset value per Unit as profits in energies and stock indices more than offset losses within the global interest rate, metals, agricultural, and currency markets.

The most significant gains were recorded within the energy markets during January and March from short positions in natural gas futures as prices dropped amid ample inventories and mild weather across the U.S. Additional gains were experienced during February from long futures positions in RBOB (unleaded) gasoline, Brent crude, and gas oil as prices increased on concerns over inventory levels and rising tensions in the Middle East. Within the global stock index sector, gains were achieved throughout the majority of the quarter from long positions in U.S. equity index futures as prices were buoyed by better-than-expected economic reports and after the U.S. Federal Reserve Board raised its assessment of the U.S. economy.

A portion of the Partnership’s gains for the quarter was offset by losses incurred within the global interest rate sector during March from long positions in U.S., Japanese, and European fixed-income futures as prices fell after the U.S. Federal Reserve upwardly revised their U.S. economic outlook and China cut banks’ reserve requirements to fuel lending. Within the metals markets, losses were

- 32 -

recorded primarily in January from short positions in zinc and aluminum futures as prices advanced on speculation metals demand will be supported by economic expansion in the U.S. and an easing credit policy in China. Smaller losses were experienced in this sector during February and March. Losses were incurred within the agricultural complex during January from short positions in wheat futures as prices advanced amid an increase in U.S. exports. Additional losses were experienced within the currency markets during February from long positions in the Japanese yen versus the U.S. dollar as the value of the Japanese yen declined amid an investor shift into riskier currency assets as the potential of a Greek bailout looked promising. During January, short positions in the euro and British pound versus the U.S. dollar resulted in losses as the value of these currencies reversed higher against the U.S. dollar.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Introduction

The Partnership is a commodity pool engaged primarily in the speculative trading of futures, forwards and options.  The market-sensitive instruments held by the Partnership are acquired for speculative trading purposes only and, as a result, all or substantially all of the Partnership’s assets are at risk of trading loss.  Unlike an operating company, the risk of market-sensitive instruments is inherent to the primary business activity of the Partnership.

The futures, forwards and options on such contracts traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its

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earnings, whether realized or unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts and forward currency options contracts are settled upon termination of the contract.

Gains and losses on off-exchange-traded forward currency options contracts are settled upon an agreed upon settlement date.

The Partnership’s total market risk may increase or decrease as it is influenced by a wide variety of factors, including, but not limited to, the diversification among the Partnership’s open positions, the volatility present within the markets, and the liquidity of the markets.

The face value of the market sector instruments held by the Partnership is typically many times the applicable margin requirements.  Margin requirements generally range between 2% and 15% of contract face value.  Additionally, the use of leverage causes the face value of the market sector instruments held by the Partnership typically to be many times the total capitalization of the Partnership.

The Partnership’s past performance is no guarantee of its future results.  Any attempt to numerically quantify the Partnership’s market risk is limited by the uncertainty of its speculative trading.  The Partnership’s speculative trading and use of leverage may cause future losses and volatility (i.e., “risk of ruin”) that far exceed the Partnership’s experience to date as discussed under the “Partnership’s Value at Risk in Different Market Sectors” section and significantly exceed the Value at Risk (“VaR”) tables disclosed.

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Limited partners will not be liable for losses exceeding the current net asset value of their investment.

Quantifying the Partnership’s Trading Value at Risk

The following quantitative disclosures regarding the Partnership’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).  All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Partnership accounts for open positions on the basis of fair value accounting principles.  Any loss in the market value of the Partnership’s open positions is directly reflected in the Partnership’s earnings and cash flow.

The Partnership’s risk exposure in the market sectors traded by the Trading Advisor is estimated below in terms of VaR.  Please note that the VaR model is used to numerically quantify market risk for historic reporting purposes only and is not utilized by either Ceres or the Trading Advisor in their daily risk management activities.

VaR is a measure of the maximum amount which the Partnership could reasonably be expected to lose in a given market sector.  However, the inherent uncertainty of the Partnership’s speculative trading and the recurrence in the markets traded by the Partnership of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated VaR or the

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Partnership’s experience to date (i.e., “risk of ruin”).  In light of the foregoing as well as the risks and uncertainties intrinsic to all future projections, the inclusion of the quantification in this section should not be considered to constitute any assurance or representation that the Partnership’s losses in any market sector will be limited to VaR or by the Partnership’s attempts to manage its market risk.

Exchange maintenance margin requirements have been used by the Partnership as the measure of its VaR.  Maintenance margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95% - 99% of any one-day interval.  Maintenance margin has been used rather than the more generally available initial margin, because initial margin includes a credit risk component, which is not relevant to VaR.

The Partnership’s Value at Risk in Different Market Sectors

The following tables indicate the trading VaR associated with the Partnership’s open positions by market category as of March 31, 2013 and December 31, 2012, and the highest, lowest and average values during the quarter ended March 31, 2013 and for the twelve months ended December 31, 2012.  All open position trading risk exposures of the Partnership have been included in calculating the figures set forth below.  There has been no material change in the trading VaR information previously disclosed in the Form 10-K.

As of March 31, 2013, the Partnership’s total capitalization was approximately $60 million.

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March 31, 2013

Primary Market		% of Total
Risk Category	VaR	Capitalization
Currency	$1,711,369	2.88%
Interest Rate	2,329,842	3.92%
Equity	1,928,572	3.24%
Commodity	2,872,414	4.83%
Total	$8,842,197	14.87%

     Three Months Ended March 31, 2013

Market Sector	High VaR $	Low VaR $	Average VaR* $
Currency	$4,475,167	$1,371,324	$3,140,409
Interest Rate	$2,333,987	$469,441	$951,976
Equity	$2,550,206	$1,884,899	$2,138,123
Commodity	$3,022,814	$1,861,037	$2,617,755
Total

* Average of month-end VaR

As of December 31, 2012, the Partnership’s total capitalization was approximately $63 million.

December 31, 2012

Primary Market		% of
Risk Category	VaR	Total Capitalization
Currency	$4,475,167	7.07%
Interest Rate	1,548,520	2.45%
Equity	2,550,206	4.03%
Commodity	1,861,037	2.94%
Total	$10,434,930	16.49%

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Twelve Months Ended December 31, 2012

Market Sector	High VaR $	Low VaR $	Average VaR* $
Currency	$6,467,879	$1,524,754	$4,295,157
Interest Rate	$5,355,824	$1,403,848	$2,861,156
Equity	$2,601,876	$848,694	$1,823,602
Commodity	$4,366,102	$1,597,466	$3,173,053
*Average of month-end VaR.

Limitations on Value at Risk as an Assessment of Market Risk

VaR models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks, reflect risk reduction due to portfolio diversification or hedging activities, and can cover a wide range of portfolio assets. However, VaR risk measures should be viewed in light of the methodology’s limitations, which include, but may not be limited to the following:

·   past changes in market risk factors will not always result in accurate predictions of the distributions and correlations of future market movements;

·   changes in portfolio value caused by market movements may differ from those of the VaR model;

·   VaR results reflect past market fluctuations applied to current trading positions while future risk depends on future positions;

·   VaR using a one-day time horizon does not fully capture the market risk of positions that cannot be liquidated or hedged within one day; and

·   the historical market risk factor data used for VaR estimation may provide only limited insight into losses that could be incurred under certain unusual market movements.

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Non-Trading Risk

The Partnership has non-trading market risk on its foreign cash balances not needed for margin.  These balances and any market risk they may represent are immaterial.

A decline in short-term interest rates would result in a decline in the Partnership’s cash management income. This cash flow risk is not considered to be material.

Materiality, as used throughout this section, is based on an assessment of reasonably possible market movements and any associated potential losses, taking into account the leverage, optionality, and multiplier features of the Partnership’s market-sensitive instruments, in relation to the Partnership’s net assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

The following qualitative disclosures regarding the Partnership’s market risk exposures - except for (A) those disclosures that are statements of historical fact and (B) the descriptions of how the Partnership manages its primary market risk exposures - constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. The Partnership’s primary market risk exposures, as well as the strategies used and to be used by Ceres and the Trading Advisor for managing such exposures, are subject to numerous uncertainties, contingencies and risks, any one of which could cause the actual results of the Partnership’s risk controls to differ materially from the objectives of such strategies.  Government interventions, defaults and expropriations, illiquid markets, the emergence of dominant fundamental factors, political upheavals, changes in historical price relationships, an influx of new market participants, increased

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regulation, and many other factors could result in material losses, as well as in material changes to the risk exposures and the risk management strategies of the Partnership.  Investors must be prepared to lose all or substantially all of their investment in the Partnership.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The Partnership and the Trading Advisor, separately, attempt to manage the risk of the Partnership’s open positions in essentially the same manner in all market categories traded. Ceres attempts to manage market exposure by diversifying the Partnership’s assets among different market sectors through the selection of a commodity trading advisor and by daily monitoring of its performance.  In addition, the Trading Advisor establishes diversification guidelines, often set in terms of the maximum margin to be committed to positions in any one market sector or market-sensitive instrument.

Ceres monitors and controls the risk of the Partnership’s non-trading instrument, cash. Cash is the only Partnership investment directed by Ceres, rather than the Trading Advisor.

Item 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of the management of Ceres, Ceres’ President (Ceres’ principal executive officer) and Chief Financial Officer (Ceres’ principal financial officer) have evaluated the effectiveness of the design and operation of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31,

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2013.  The Partnership’s disclosure controls and procedures are designed to provide reasonable assurance that information the Partnership is required to disclose in the reports that the Partnership files or submits under the Exchange Act are recorded, processed and summarized and reported within the time period specified in the applicable rules and forms.  Based on this evaluation, the President and Chief Financial Officer of Ceres have concluded that the disclosure controls and procedures of the Partnership were effective at March 31, 2013.

Changes in Internal Control over Financial Reporting

There have been no changes during the period covered by this quarterly report in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected or are reasonably likely to materially affect the Partnership’s internal control over financial reporting.

Limitations on the Effectiveness of Controls

Any control system, no matter how well designed and operated, can provide reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

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PART II.  OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

Unless the context otherwise requires, for purposes of this section, the terms the “Company,” “we,” “us” and “our” mean Morgan Stanley and its consolidated subsidiaries. In addition to the matters described in the Form 10-K, and those described below, in the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary defendants in such cases are bankrupt or in financial distress.

The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company’s business, including, among other matters, accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.

The Company contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the condensed consolidated financial statements and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to income.

- 42 -

In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. The Company cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, determination of issues related to class certification and the calculation of damages, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any proceeding. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that the outcome of such proceedings will not have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending on, among other things, the level of the Company’s revenues or income for such period.

MS&Co. is a wholly-owned, indirect subsidiary of Morgan Stanley, a Delaware holding company.  Morgan Stanley files periodic reports with the Securities and Exchange Commission as required by the Securities Exchange Act of 1934, which include current descriptions of material litigation and material proceedings and investigations, if any, by governmental and/or regulatory agencies or self-regulatory organizations concerning Morgan Stanley and its subsidiaries, including MS&Co.  As a consolidated subsidiary of Morgan Stanley, MS&Co. does not file its own periodic reports with the SEC that contain descriptions of material litigation, proceedings and investigations.  As a result, we refer you to the “Legal Proceedings” section of Morgan Stanley’s SEC 10-K filings for fiscal years 2012, 2011, 2010, 2009, and 2008.

- 43 -

MS&Co. is a Delaware limited liability company with its main business office located at 1585 Broadway, New York, New York 10036.  Among other registrations and memberships, MS&Co. is registered as a futures commission merchant and is a member of the National Futures Association.

The following developments have occurred with respect to certain matters previously reported in the Form 10-K or concern new actions that have been filed since the Form 10-K:

On March 15, 2010, the Federal Home Loan Bank of San Francisco filed two complaints against the Company and other defendants in the Superior Court of the State of California. These actions are styled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al., and Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al., respectively. Amended complaints filed on June 10, 2010 allege that defendants made untrue statements and material omissions in connection with the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly sold to plaintiff by the Company in these cases was approximately $704 million and $276 million, respectively. The complaints raise claims under both the federal securities laws and California law and seek, among other things, to rescind the plaintiff's purchase of such certificates.  On July 29, 2011 and September 8, 2011, the court presiding over both actions sustained defendants' demurrers with respect to claims brought under the Securities Act, and overruled defendants' demurrers with respect to all other claims. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $356 million, and the certificates had incurred actual losses of approximately $1.7 million. Based on currently available information, the Company believes it could incur a loss up to the difference between the $356 million

- 44 -

unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 9, 2010 and February 11, 2011, Cambridge Place Investment Management Inc. filed two separate complaints against the Company and other defendants in the Superior Court of the Commonwealth of Massachusetts, both styled Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc., et al. The complaints assert claims on behalf of certain clients of plaintiff's affiliates and allege that defendants made untrue statements and material omissions in the sale of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by the Company or sold to plaintiff's affiliates' clients by the Company in the two matters was approximately $344 million. The complaints raise claims under the Massachusetts Uniform Securities Act and seek, among other things, to rescind the plaintiff's purchase of such certificates.  On October 14, 2011, plaintiffs filed an amended complaint in each action. On November 22, 2011, defendants filed a motion to dismiss the amended complaints. On March 12, 2012, the court denied defendants' motion to dismiss with respect to plaintiff's standing to bring suit. Defendants sought interlocutory appeal from that decision on April 11, 2012. On April 26, 2012, defendants filed a second motion to dismiss for failure to state a claim upon which relief can be granted, which the court denied, in substantial part, on October 2, 2012. Based on currently available information, the Company believes it could incur a loss for these actions of up to the difference between the as yet undetermined unpaid balance of these certificates

- 45 -

(plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against the Company, which is styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. and is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Company misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Company knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB's obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court presiding over this action denied the Company's motion to dismiss the complaint and on March 21, 2011, the Company appealed that order.  On July 7, 2011, the appellate court affirmed the lower court's decision denying the motion to dismiss. Based on currently available information, the Company believes it could incur a loss of up to approximately $240 million plus pre- and post-judgment interest, fees and costs.

On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against the Company and other defendants in the Circuit Court of the State of Illinois styled Federal Home Loan

- 46 -

Bank of Chicago v. Bank of America Funding Corporation et al. The complaint alleges that defendants made untrue statements and material omissions in the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans.  The total amount of certificates allegedly sold to plaintiff by the Company in this action was approximately $203 million.  The complaint raises claims under Illinois law and seeks, among other things, to rescind the plaintiff's purchase of such certificates. On March 24, 2011, the court granted plaintiff leave to file an amended complaint. On May 27, 2011, defendants filed a motion to dismiss the amended complaint, which motion was denied on September 19, 2012. The Company filed its answer on December 21, 2012. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this case was approximately $103 million and certain certificates had incurred actual losses of approximately $700,000. Based on currently available information, the Company believes it could incur a loss up to the difference between the $103 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On July 18, 2011, the Western and Southern Life Insurance Company and certain affiliated companies filed a complaint against the Company and other defendants in the Court of Common Pleas in Ohio, styled Western and Southern Life Insurance Company, et al. v. Morgan Stanley Mortgage Capital Inc., et al. An amended complaint was filed on April 2, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of the certificates

- 47 -

allegedly sold to plaintiffs by the Company was approximately $153 million. The amended complaint raises claims under the Ohio Securities Act, federal securities laws, and common law and seeks, among other things, to rescind the plaintiffs' purchases of such certificates. On May 21, 2012, the Company filed a motion to dismiss the amended complaint, which motion was denied on August 3, 2012. The court has set a trial date of November 2013. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this case was approximately $122 million, and the certificates had incurred actual losses of approximately $55,000. Based on currently available information, the Company believes it could incur a loss up to the difference between the $122 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus post-judgment interest, fees and costs. The Company may be entitled to an offset for interest received by the plaintiff prior to a judgment.

On September 2, 2011, the Federal Housing Finance Agency (“FHFA”), as conservator for Fannie Mae and Freddie Mac, filed 17 complaints against numerous financial services companies, including the Company. A complaint against the Company and other defendants was filed in the Supreme Court of NY, styled Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to Fannie Mae and Freddie Mac of residential mortgage pass-through certificates with an original unpaid balance of approximately $11 billion. The complaint raises claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On September 26, 2011, defendants removed the action to the United States District Court for the Southern District of New York and on October 26, 2011, the FHFA moved to remand the action back to the Supreme Court of NY. On May 11, 2012, plaintiff withdrew its motion

- 48 -

to remand. On July 13, 2012, the Company filed a motion to dismiss the complaint, which motion was denied in large part on November 19, 2012. Trial is currently scheduled to begin in January 2015. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $2.87 billion, and the certificates had incurred actual losses of approximately $54 million. Based on currently available information, the Company believes it could incur a loss up to the difference between the $2.87 billion unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On April 25, 2012, The Prudential Insurance Company of America and certain affiliates filed a complaint against the Company and certain affiliates in the Superior Court of the State of New Jersey styled The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company is approximately $1 billion. The complaint raises claims under the New Jersey Uniform Securities Law, as well as common law claims of negligent misrepresentation, fraud and tortious interference with contract and seeks, among other things, compensatory damages, punitive damages, rescission and rescissionary damages associated with plaintiffs' purchases of such certificates. On October 16, 2012, plaintiffs filed an amended complaint which, among other things, increases the total amount of the certificates at issue by approximately $80 million, adds causes of action for fraudulent inducement, equitable fraud, aiding and abetting fraud, and violations of the New

- 49 -

Jersey RICO statute, and includes a claim for treble damages. On January 23, 2013, defendants filed a motion to dismiss the amended complaint, which was denied on March 15, 2013. At March 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $598 million, and the certificates had not yet incurred actual losses. Based on currently available information, the Company believes it could incur a loss up to the difference between the $598 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

On August 25, 2008, the Company and two ratings agencies were named as defendants in a purported class action related to securities issued by a structured investment vehicle called Cheyne Finance PLC and Cheyne Finance LLC (together, the “Cheyne SIV”). The case was styled Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co. Inc., et al. The complaint alleged, among other things, that the ratings assigned to the securities issued by the Cheyne SIV were false and misleading, including because the ratings did not accurately reflect the risks associated with the subprime residential mortgage backed securities held by the Cheyne SIV. The plaintiffs asserted allegations of aiding and abetting fraud and negligent misrepresentation relating to approximately $852 million of securities issued by the Cheyne SIV.  On April 24, 2013, the parties reached an agreement to settle the case, and on April 26, 2013, the court dismissed the action with prejudice. The settlement does not cover certain claims that were previously dismissed.

- 50 -

Item 1A.  RISK FACTORS

There have been no material changes from the risk factors previously referenced in the Partnership’s Report on Form 10-K for the fiscal year ended December 31, 2012.

Item 4.  MINE SAFETY DISCLOSURES

Not applicable.

Item 6. EXHIBITS

31.01 Certification of President of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.02 Certification of Chief Financial Officer of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.01 Certification of President of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.02 Certification of Chief Financial Officer of Ceres Managed Futures LLC, the General Partner of the Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS* XBRL Instance Document

101.SCH* XBRL Taxonomy Extension Schema Document

101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB* XBRL Taxonomy Extension Label Document

101.PRE* XBRL Taxonomy Extension Presentation Document

101.DEF* XBRL Taxonomy Extension Definition Document

- 51 -

Notes to Exhibits List

*Submitted electronically herewith.

Pursuant to applicable securities laws and regulations, the Partnership is deemed to have complied with the reporting obligation relating to the submission of interactive data files in Exhibit 101 to this report and is not subject to liability under any anti-fraud provisions of the federal securities laws as long as the Partnership has made a good faith attempt to comply with the submission requirements and promptly amends the interactive data files after becoming aware that the interactive data files fails to comply with the submission requirements. Users of this data are advised that, pursuant to Rule 406T, these interactive data files are deemed not filed and otherwise are not subject to liability.

- 52 -

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Morgan Stanley Smith Barney Charter Aspect L.P.
	(Registrant)
	By:	Ceres Managed Futures LLC
		(General Partner)
May 13, 2013	By:	/s/Damian George
		Damian George
		Chief Financial Officer and Director

The General Partner which signed the above is the only party authorized to act for the registrant.  The registrant has no principal executive officer, principal financial officer, controller, or principal accounting officer and has no Board of Directors.

- 53 -

EX-31.01

EXHIBIT 31.01

CERTIFICATIONS

I, Walter Davis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Morgan Stanley Smith Barney Charter Aspect L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2013	By:	/s/Walter Davis
		Walter Davis
		President and Director,
		Ceres Managed Futures LLC,
		General Partner of the registrant

EX-31.02

EXHIBIT 31.02

CERTIFICATIONS

I, Damian George, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Morgan Stanley Smith Barney Charter Aspect L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition , results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this  report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  May 13, 2013	By:	/s/ Damian George
		Damian George
		Chief Financial Officer and Director,
		Ceres Managed Futures LLC,
		General Partner of the registrant

EX-32.01

EXHIBIT 32.01

CERTIFICATION OF PRESIDENT PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Charter Aspect L.P. (the “Partnership”) on Form    10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter Davis, President and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/Walter Davis
Name:	Walter Davis
Title:	President and Director of
	Ceres Managed Futures LLC,
	General Partner of the registrant
Date:	May 13, 2013

EX-32.02

EXHIBIT 32.02

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley Smith Barney Charter Aspect L.P. (the “Partnership”) on Form   10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Damian George, Chief Financial Officer and Director of Ceres Managed Futures LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/  Damian George
Name:	Damian George
Title:	Chief Financial Officer and Director of
	Ceres Managed Futures LLC
	General Partner of the registrant
Date:	May 13, 2013

XML

Derivatives and Hedging, Effect of Trading Activities on Statements of Financial Condition (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	$ 1,787,382		$ 1,617,474
Unrealized currency gain (loss)	823,378		802,973
Effect of Trading Activities on Statements of Income [Abstract]
Unrealized currency gain	20,405	(52,839)
Net realized	1,524,745	3,633,938
Net change in unrealized	169,908	(1,629,679)
Total Trading Results	1,694,653	2,004,259
Commodity [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	(392,179)	3,145,899
Equity [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	2,724,296	498,448
Foreign Currency [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	243,757	(119,871)
Interest Rate [Member]
Effect of Trading Activities on Statements of Income [Abstract]
Trading results	(901,626)	(1,467,378)
Futures and Forward Contracts [Member]
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	964,004		814,501
Futures and Forward Contracts [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	914,672		(31,520)
Average number of contracts outstanding	980		858
Futures and Forward Contracts [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	122,091		689,689
Average number of contracts outstanding	740		592
Futures and Forward Contracts [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	(405,816)		119,582
Average number of contracts outstanding	910		936
Futures and Forward Contracts [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Net unrealized gain/(loss) on open contracts	333,057		36,750
Average number of contracts outstanding	1,375		2,731
Futures and Forward Contracts [Member] | Long [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	1,587,601		1,504,919
Unrealized loss	(674,831)		(1,068,530)
Futures and Forward Contracts [Member] | Long [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	267,472		146,738
Unrealized loss	(48,618)		(309,360)
Futures and Forward Contracts [Member] | Long [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	433,639		731,889
Unrealized loss	(308,844)		(35,125)
Futures and Forward Contracts [Member] | Long [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	217,923		215,614
Unrealized loss	(266,043)		(357,045)
Futures and Forward Contracts [Member] | Long [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	668,567		410,678
Unrealized loss	(51,326)		(367,000)
Futures and Forward Contracts [Member] | Short [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	831,833		947,065
Unrealized loss	(780,599)		(568,953)
Futures and Forward Contracts [Member] | Short [Member] | Commodity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	796,441		497,636
Unrealized loss	(100,623)		(366,534)
Futures and Forward Contracts [Member] | Short [Member] | Equity [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	1,260		0
Unrealized loss	(3,964)		(7,075)
Futures and Forward Contracts [Member] | Short [Member] | Foreign Currency [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	34,132		448,109
Unrealized loss	(391,828)		(187,096)
Futures and Forward Contracts [Member] | Short [Member] | Interest Rate [Member]
Futures and Forward Contracts [Abstract]
Unrealized gain	0		1,320
Unrealized loss	$ (284,184)		$ (8,248)

XML

Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

3.  Related Party Transactions

The Partnership's cash is on deposit in commodity brokerage accounts with Morgan Stanley.  Monthly, MS&Co. pays the Partnership interest income on 100% of the average daily equity maintained in cash in the Partnership's account during each month at a rate equal to 80% of the monthly average of the 4-week U.S. Treasury bill discount rate.  MS&Co. retains any interest earned in excess of the interest paid by MS&Co. to the Partnership.  For purposes of such interest payments, net assets do not include monies due to the Partnership on Futures Interests that have not been received.    The Partnership pays a flat rate brokerage fee to MS&Co.

XML

Financial Highlights

3 Months Ended

Mar. 31, 2013

Financial Highlights [Abstract]

Financial Highlights

2. Financial Highlights

Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

	For the Quarters Ended March 31,
	2013			2012
Per Unit operating performance:
Net asset value, January 1:	$	17.83		$	20.94
Interest Income		–	(3)		–	(3)
Expenses		(0.34	)		(0.43	)
Realized/Unrealized Income (1 )		0.49			0.45
Net Income		0.15			0.02
Net asset value, March 31:	$	17.98		$	20.96
Ratios to average net assets:
Net Investment Loss (2)		(7.7	)%		(8.1	)%
Expenses before  Incentive Fees (2)		7.8	%		8.2	%
Expenses after Incentive Fees (2)		7.8	%		8.2	%
Net Income (2)		3.6	%		0.6	%
Total return before incentive fees		0.8	%		0.1	%
Total return after incentive fees		0.8	%		0.1	%

(1) Realized/Unrealized Income is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

(2) Annualized (except for incentive fees if applicable).

(3) Amounts less than $0.005 per Unit.

XML

Statements of Financial Condition (Unaudited) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Trading Equity:
Unrestricted cash	$ 51,792,875	$ 57,406,016
Restricted cash	7,569,180	6,014,943
Total cash	59,362,055	63,420,959
Total net unrealized gain on open contracts (MS&Co.)	1,787,382	1,617,474
Total Trading Equity	61,149,437	65,038,433
Interest receivable (MS&Co)	3,633	1,952
Total Assets	61,153,070	65,040,385
LIABILTIES
Redemptions payable	1,273,110	1,338,507
Accrued brokerage fees (MS&Co.)	299,541	321,906
Accrued management fees	74,885	80,476
Total Liabilities	1,647,536	1,740,889
PARTNERS' CAPITAL
Limited Partners (3,268,634.683 and 3,508,314.701 Units, respectively)	58,761,997	62,561,958
General Partner (41,359.223 and 41,359.223 Units, respectively)	743,537	737,538
Total Partners' Capital	59,505,534	63,299,496
Total Liabilities and Partners' Capital	$ 61,153,070	$ 65,040,385
NET ASSET VALUE PER UNIT (in dollars per unit)	$ 17.98	$ 17.83

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Statements of Changes in Partners' Capital (Unaudited) (USD $)	Limited Partners [Member]	General Partner [Member]	Total
Partners' Capital at Dec. 31, 2011	$ 92,674,799	$ 1,070,769	$ 93,745,568
Partners' Capital (in units) at Dec. 31, 2011			4,476,439.147
Increase/(decrease) in Partners' Capital [Roll Forward]
Net Income	139,019	1,045	140,064
Redemptions	(4,356,499)	0	(4,356,499)
Redemptions (in units)			(205,507.419)
Partners' Capital at Mar. 31, 2012	88,457,319	1,071,814	89,529,133
Partner's Capital (in units) at Mar. 31, 2012			4,270,931.728
Partners' Capital at Dec. 31, 2012	62,561,958	737,538	63,299,496
Partners' Capital (in units) at Dec. 31, 2012			3,549,673.924
Increase/(decrease) in Partners' Capital [Roll Forward]
Net Income	531,785	5,999	537,784
Redemptions	(4,331,746)	0	(4,331,746)
Redemptions (in units)			(239,680.018)
Partners' Capital at Mar. 31, 2013	$ 58,761,997	$ 743,537	$ 59,505,534
Partner's Capital (in units) at Mar. 31, 2013			3,309,993.906

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Related Party Transactions (Details)	3 Months Ended
	Mar. 31, 2013
Related Party Transactions [Abstract]
Percentage of interest paid on average daily equity maintained in cash in partnership account (in hundredths)	100.00%
Percentage monthly average of 4-week U.S. Treasury bill discount rate (in hundredths)	80.00%

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Derivatives and Hedging (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Offsetting of Derivative Assets [Line Items]
Gross amounts recognized	$ 1,587,601	$ 1,504,919
Gross amounts offset in the statements of financial condition	(674,831)	(1,068,530)
Net amounts presented in the statement of financial condition	912,770	436,389
Offsetting of Derivative Liabilities [Line Items]
Gross amounts recognized	831,833	947,065
Gross amounts offset in the statement of financial condition	(780,599)	(568,953)
Net amounts presented in the statement of financial condition	51,234	378,112
Unrealized currency gain	823,378	802,973
Net unrealized gain/(loss) on open contracts	1,787,382	1,617,474
Future [Member]
Offsetting of Derivative Assets [Line Items]
Gross amounts recognized	1,383,977	1,295,413
Gross amounts offset in the statements of financial condition	(411,138)	(720,472)
Net amounts presented in the statement of financial condition	972,839	574,941
Offsetting of Derivative Liabilities [Line Items]
Gross amounts recognized	797,701	521,699
Gross amounts offset in the statement of financial condition	(405,368)	(381,857)
Net amounts presented in the statement of financial condition	392,333	139,842
Forward Contracts [Member]
Offsetting of Derivative Assets [Line Items]
Gross amounts recognized	203,624	209,506
Gross amounts offset in the statements of financial condition	(263,693)	(348,058)
Net amounts presented in the statement of financial condition	(60,069)	(138,552)
Offsetting of Derivative Liabilities [Line Items]
Gross amounts recognized	34,132	425,366
Gross amounts offset in the statement of financial condition	(375,231)	(187,096)
Net amounts presented in the statement of financial condition	$ (341,099)	$ 238,270

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Organization

3 Months Ended

Mar. 31, 2013

Organization [Abstract]

Organization

1.  Organization

Morgan Stanley Smith Barney Charter Aspect L.P. is a Delaware limited partnership organized in 1993 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively, "Futures Interests") (refer to Note 4. Financial Instruments).  The Partnership is one of the Morgan Stanley Charter series of funds, comprised of the Partnership, Morgan Stanley Smith Barney Charter WNT L.P., and Morgan Stanley Smith Barney Charter Campbell L.P. (collectively, the "Charter Series").

Ceres Managed Futures LLC, a Delaware limited liability company, acts as a general partner ("Ceres" or the "General Partner") and commodity pool operator for the Partnership.  Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC ("MSSBH").  MSSBH is majority-owned indirectly by Morgan Stanley and minority-owned indirectly by Citigroup Inc. ("Citigroup"). Morgan Stanley expects to purchase, subject to regulatory approvals, Citigroup's remaining interest in MSSBH. Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management ("Morgan Stanley Wealth Management").  This entity, where the Partnership continues to maintain a cash account, previously acted as a non-clearing commodity broker for the Partnership.  The clearing commodity broker is Morgan Stanley & Co. LLC ("MS&Co.").   MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts. Morgan Stanley Wealth Management is a principal subsidiary of MSSBH.  MS&Co. is wholly-owned subsidiary of Morgan Stanley.  Aspect Capital Limited ("Aspect" or the "Trading Advisor") is the trading advisor to the Partnership.

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Statements of Financial Condition (Unaudited) (Parenthetical)	Mar. 31, 2013	Dec. 31, 2012
Partners' Capital [Abstract]
Limited Partners, Units (in units)	3,268,634.683	3,508,314.701
General Partner, Units (in units)	41,359.223	41,359.223

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Financial Highlights (Tables)

3 Months Ended

Mar. 31, 2013

Financial Highlights, Disclosures [Line Items]

Financial Highlights

Financial Highlights for the quarters ended March 31, 2013 and 2012 were as follows:

	For the Quarters Ended March 31,
	2013			2012
Per Unit operating performance:
Net asset value, January 1:	$	17.83		$	20.94
Interest Income		–	(3)		–	(3)
Expenses		(0.34	)		(0.43	)
Realized/Unrealized Income (1 )		0.49			0.45
Net Income		0.15			0.02
Net asset value, March 31:	$	17.98		$	20.96
Ratios to average net assets:
Net Investment Loss (2)		(7.7	)%		(8.1	)%
Expenses before  Incentive Fees (2)		7.8	%		8.2	%
Expenses after Incentive Fees (2)		7.8	%		8.2	%
Net Income (2)		3.6	%		0.6	%
Total return before incentive fees		0.8	%		0.1	%
Total return after incentive fees		0.8	%		0.1	%

(1) Realized/Unrealized Income is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

(2) Annualized (except for incentive fees if applicable).

(3) Amounts less than $0.005 per Unit.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	MORGAN STANLEY SMITH BARNEY CHARTER ASPECT L.P.
Entity Central Index Key	0000914747
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	3,268,634.683
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013

XML

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Net Unrealized Gains And Losses on Open Contracts, Disclosures [Line Items]

Net Unrealized Gain (Loss) on Open Contracts

The net unrealized gains (losses) on open contracts, reported as a component of "Trading Equity" on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains (Losses) on Open Contracts							Longest Maturities
Date	Exchange-Traded		Off-Exchange-Traded			Total		Exchange-Traded	Off-Exchange-Traded
	$		$			$
Mar. 31, 2013		2,188,550		(401,168	)		1,787,382	Sep. 2015	Apr. 2013
Dec. 31, 2012		1,517,757		99,717			1,617,474	Jun. 2015	Jan. 2013

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Condensed Schedule of Investments (Unaudited) (USD $)	Mar. 31, 2013		Dec. 31, 2012
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	$ 1,787,382		$ 1,617,474
Percentage of Partners' Capital (in hundredths)	3.00%		2.56%
Unrealized currency gain	823,378		802,973
Unrealized currency gain percentage of Partners' Capital (in hundredths)	1.38%		1.27%
Contracts Purchased [Member] | Futures And Forward Contracts [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	912,770		436,389
Percentage of Partners' Capital (in hundredths)	1.53%		0.69%
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Commodity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	218,854		(162,622)
Percentage of Partners' Capital (in hundredths)	0.37%		(0.26%)
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Equity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	124,795		696,764
Percentage of Partners' Capital (in hundredths)	0.20%		1.10%
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Foreign Currency [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	(48,120)		(141,431)
Percentage of Partners' Capital (in hundredths)	(0.08%)		(0.22%)
Contracts Purchased [Member] | Futures And Forward Contracts [Member] | Interest Rate Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	617,241		43,678
Percentage of Partners' Capital (in hundredths)	1.04%		0.07%
Contracts Sold [Member] | Futures And Forward Contracts [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	51,234		378,112
Percentage of Partners' Capital (in hundredths)	0.09%		0.60%
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Commodity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	695,818		131,102
Percentage of Partners' Capital (in hundredths)	1.17%		0.21%
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Equity Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	(2,704)		(7,075)
Percentage of Partners' Capital (in hundredths)	0.00%	[1]	(0.01%)
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Foreign Currency [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	(357,696)		261,013
Percentage of Partners' Capital (in hundredths)	(0.60%)		0.41%
Contracts Sold [Member] | Futures And Forward Contracts [Member] | Interest Rate Contract [Member]
Investment Holdings [Line Items]
Net unrealized gain/(loss) on open contracts	$ (284,184)		$ (6,928)
Percentage of Partners' Capital (in hundredths)	(0.48%)		(0.01%)

[1] Amounts less than 0.005%

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Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2013

Fair Value Measurements and Disclosures [Abstract]

Fair Value Measurements and Disclosures

6.  Fair Value Measurements and Disclosures

Effective January 1, 2012, the Partnership adopted ASU 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and 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.

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. The amendments are effective for fiscal periods beginning after December 15, 2012. The adoption of this ASU 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 and 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.

March 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		2,181,677		–			n/a		2,181,677
Forwards		–		237,757			n/a		237,757
Total Assets		2,181,677		237,757			n/a		2,419,434
Liabilities
Futures		816,505		–			n/a		816,505
Forwards		–		638,925			n/a		638,925
Total Liabilities		816,505		638,925			n/a		1,455,430
Unrealized currency gain									823,378
*Net fair value		1,365,172		(401,168	)		n/a		1,787,382

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		–		n/a		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								802,973
*Net fair value		714,784		99,717		n/a		1,617,474

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

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

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Derivatives and Hedging

3 Months Ended

Mar. 31, 2013

Derivatives and Hedging [Abstract]

Derivatives and Hedging

5.  Derivatives and Hedging

The Partnership's objective is to profit from speculative trading in Futures Interests.  Therefore, the Trading Advisor for the Partnership will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its trading strategy.  As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures. With regard to foreign currency forward trades, each notional quantity amount has been converted to an equivalent contract based upon an industry convention.

On January 1, 2013, the Partnership adopted Accounting Standards Update ("ASU") 2011-11, "Disclosure about Offsetting Assets and Liabilities" and ASU 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities".  ASU 2011-11 created a new disclosure requirement about the nature of an entity's rights to setoff and the related arrangements associated with its financial instruments and derivative instruments, while ASU 2013-01 clarified the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11.  Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of these disclosures is to facilitate comparison between those entities that prepare their financial statements on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP") and those entities that prepare their financial statements on the basis of International Financial Reporting Standards ("IFRS"). The new guidance did not have a significant impact on the Partnership's financial statements.

The following tables summarize the valuation of the Partnership's investments as of March 31, 2013 and December 31, 2012, respectively.

Offsetting of Derivative Assets and Liabilities as of March 31, 2013:

	Gross Amounts Recognized		Gross Amounts Offset in the  Statement of Financial Condition			Net Amounts Presented in the  Statement of Financial Condition
	$		$			$
Assets
Futures		1,383,977		(411,138	)		972,839
Forwards		203,624		(263,693	)		(60,069	)
Total Assets		1,587,601		(674,831	)		912,770
Liabilities
Futures		797,701		(405,368	)		392,333
Forwards		34,132		(375,231	)		(341,099	)
Total Liabilities		831,833		(780,599	)		51,234
Unrealized currency gain							823,378
Total net unrealized gain on open contracts							1,787,382

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized		Gross Amounts Offset in the  Statement of Financial Condition			Net Amounts Presented in the  Statement of Financial Condition
	$		$			$
Assets
Futures		1,295,413		(720,472	)		574,941
Forwards		209,506		(348,058	)		(138,552	)
Total Assets		1,504,919		(1,068,530	)		436,389
Liabilities
Futures		521,699		(381,857	)		139,842
Forwards		425,366		(187,096	)		238,270
Total Liabilities		947,065		(568,953	)		378,112
Unrealized currency gain							802,973
Total net unrealized gain on open contracts							1,617,474

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net  Unrealized Gain/(Loss)			Average number of contracts outstanding for the three months  (absolute quantity)
	$		$			$		$			$
Commodity		267,472		(48,618	)		796,441		(100,623	)		914,672			980
Equity		433,639		(308,844	)		1,260		(3,964	)		122,091			740
Foreign currency		217,923		(266,043	)		34,132		(391,828	)		(405,816	)		910
Interest rate		668,567		(51,326	)		–		(284,184	)		333,057			1,375
Total		1,587,601		(674,831	)		831,833		(780,599	)		964,004
Unrealized currency gain												823,378
Total net unrealized gain on open contracts												1,787,382

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net  Unrealized Gain/(Loss)			Average number of contracts outstanding for the year (absolute quantity)
	$		$			$		$			$
Commodity		146,738		(309,360	)		497,636		(366,534	)		(31,520	)		858
Equity		731,889		(35,125	)		–		(7,075	)		689,689			592
Foreign currency		215,614		(357,045	)		448,109		(187,096	)		119,582			936
Interest rate		410,678		(367,000	)		1,320		(8,248	)		36,750			2,731
Total		1,504,919		(1,068,530	)		947,065		(568,953	)		814,501
Unrealized currency gain												802,973
Total net unrealized gain on open contracts												1,617,474

The following tables summarize the net trading results of the Partnership for the quarters ended March 31, 2013 and 2012, respectively.

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2013 included in Total Trading Results:

Type of Instrument	$
Commodity		(392,179	)
Equity		2,724,296
Foreign currency		243,757
Interest rate		(901,626	)
Unrealized currency gain		20,405
Total		1,694,653

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013:

Trading Results	$
Net realized		1,524,745
Net change in unrealized		169,908
Total Trading Results		1,694,653

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity		3,145,899
Equity		498,448
Foreign currency		(119,871	)
Interest rate		(1,467,378	)
Unrealized currency loss		(52,839	)
Total		2,004,259

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized		3,633,938
Net change in unrealized		(1,629,679	)
Total Trading Results		2,004,259

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Financial Instruments (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Investment Holdings [Line Items]
Net unrealized gains (losses) on open contracts	$ 1,787,382	$ 1,617,474
Cash held by acting commodity futures brokers administrating open contracts	61,550,605	64,938,716
Exchange-Traded [Member]
Investment Holdings [Line Items]
Net unrealized gains (losses) on open contracts	2,188,550	1,517,757
Longest maturity date	Sep. 30, 2015	Jun. 30, 2015
Off-Exchange-Traded [Member]
Investment Holdings [Line Items]
Net unrealized gains (losses) on open contracts	$ (401,168)	$ 99,717
Longest maturity date	Apr. 30, 2013	Jan. 31, 2013

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Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities, Disclosures [Line Items]

Offsetting Of Derivative Assets And Liabilities

The following tables summarize the valuation of the Partnership's investments as of March 31, 2013 and December 31, 2012, respectively.

Offsetting of Derivative Assets and Liabilities as of March 31, 2013:

	Gross Amounts Recognized		Gross Amounts Offset in the  Statement of Financial Condition			Net Amounts Presented in the  Statement of Financial Condition
	$		$			$
Assets
Futures		1,383,977		(411,138	)		972,839
Forwards		203,624		(263,693	)		(60,069	)
Total Assets		1,587,601		(674,831	)		912,770
Liabilities
Futures		797,701		(405,368	)		392,333
Forwards		34,132		(375,231	)		(341,099	)
Total Liabilities		831,833		(780,599	)		51,234
Unrealized currency gain							823,378
Total net unrealized gain on open contracts							1,787,382

Offsetting of Derivative Assets and Liabilities as of December 31, 2012:

	Gross Amounts Recognized		Gross Amounts Offset in the  Statement of Financial Condition			Net Amounts Presented in the  Statement of Financial Condition
	$		$			$
Assets
Futures		1,295,413		(720,472	)		574,941
Forwards		209,506		(348,058	)		(138,552	)
Total Assets		1,504,919		(1,068,530	)		436,389
Liabilities
Futures		521,699		(381,857	)		139,842
Forwards		425,366		(187,096	)		238,270
Total Liabilities		947,065		(568,953	)		378,112
Unrealized currency gain							802,973
Total net unrealized gain on open contracts							1,617,474

Schedule of Effect of Trading Activities on the Statements of Financial Condition

The Effect of Trading Activities on the Statements of Financial Condition as of March 31, 2013:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net  Unrealized Gain/(Loss)			Average number of contracts outstanding for the three months  (absolute quantity)
	$		$			$		$			$
Commodity		267,472		(48,618	)		796,441		(100,623	)		914,672			980
Equity		433,639		(308,844	)		1,260		(3,964	)		122,091			740
Foreign currency		217,923		(266,043	)		34,132		(391,828	)		(405,816	)		910
Interest rate		668,567		(51,326	)		–		(284,184	)		333,057			1,375
Total		1,587,601		(674,831	)		831,833		(780,599	)		964,004
Unrealized currency gain												823,378
Total net unrealized gain on open contracts												1,787,382

The Effect of Trading Activities on the Statements of Financial Condition as of December 31, 2012:

Futures and Forward Contracts	Long Unrealized Gain		Long Unrealized Loss			Short Unrealized Gain		Short Unrealized Loss			Net  Unrealized Gain/(Loss)			Average number of contracts outstanding for the year (absolute quantity)
	$		$			$		$			$
Commodity		146,738		(309,360	)		497,636		(366,534	)		(31,520	)		858
Equity		731,889		(35,125	)		–		(7,075	)		689,689			592
Foreign currency		215,614		(357,045	)		448,109		(187,096	)		119,582			936
Interest rate		410,678		(367,000	)		1,320		(8,248	)		36,750			2,731
Total		1,504,919		(1,068,530	)		947,065		(568,953	)		814,501
Unrealized currency gain												802,973
Total net unrealized gain on open contracts												1,617,474

Schedule of Effect of Trading Activities on the Statements of Income and Expenses

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2013 included in Total Trading Results:

Type of Instrument	$
Commodity		(392,179	)
Equity		2,724,296
Foreign currency		243,757
Interest rate		(901,626	)
Unrealized currency gain		20,405
Total		1,694,653

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2013:

Trading Results	$
Net realized		1,524,745
Net change in unrealized		169,908
Total Trading Results		1,694,653

The Effect of Trading Activities on the Statements of Income and Expenses for the Quarter Ended March 31, 2012 included in Total Trading Results:

Type of Instrument	$
Commodity		3,145,899
Equity		498,448
Foreign currency		(119,871	)
Interest rate		(1,467,378	)
Unrealized currency loss		(52,839	)
Total		2,004,259

Line Items on the Statements of Income and Expenses for the Quarter Ended March 31, 2012:

Trading Results	$
Net realized		3,633,938
Net change in unrealized		(1,629,679	)
Total Trading Results		2,004,259

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes [Abstract]

Income Taxes

9.  Income Taxes

No provision for income taxes has been made in the accompanying financial statements, as partners are individually responsible for reporting income or loss based upon their respective share of the Partnership's revenues and expenses for income tax purposes.  The Partnership files U.S. federal and state tax returns.

The guidance issued by the FASB on income taxes clarifies the accounting for uncertainty in income taxes recognized in the Partnership's financial statements, and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken.  The Partnership has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of March 31, 2013 and December 31, 2012.  If applicable, the Partnership recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statements of Income and Expenses.  Generally, the 2009 through 2012 tax years remain subject to examination by U.S. federal and most state tax authorities.  No income tax returns are currently under examination.

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Other Pronouncements

3 Months Ended

Mar. 31, 2013

Other Pronouncements [Abstract]

Other Pronouncements

7.  Other Pronouncements

In October 2011, the FASB issued a proposed ASU intended to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company.  Under longstanding U.S. GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company.  The primary changes being proposed by the FASB relate to which entities would be considered investment companies as well as certain disclosure and presentation requirements.  In addition to the changes to the criteria for determining whether an entity is an investment company, the FASB also proposes that an investment company would be required to consolidate another investment company if it holds a controlling financial interest in the entity.  In August 2012, the FASB updated the proposed ASU to state that entities regulated under the Investment Company Act of 1940 should qualify to be investment companies within the proposed investment company guide.  The Partnership will evaluate the impact that this proposed update would have on the financial statements once the pronouncement is issued.

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Restricted and Unrestricted Cash

3 Months Ended

Mar. 31, 2013

Restricted and Unrestricted Cash [Abstract]

Restricted and Unrestricted Cash

8.  Restricted and Unrestricted Cash

As reflected on the Partnership's Statements of Financial Condition, restricted cash equals the cash portion of assets on deposit to meet margin requirements plus the cash required to offset unrealized losses on foreign currency forwards and options contracts and offset unrealized losses on offset London Metal Exchange positions. All of these amounts are maintained separately.  Cash that is not classified as restricted cash is therefore classified as unrestricted cash.

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

10.  Subsequent Events

Management performed its evaluation of subsequent events through the date of filing, and has determined that there were no subsequent events requiring adjustment of or disclosure in the financial statements.

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Financial Highlights (Details) (USD $)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Per Unit operating performance [Abstract]
Net asset value, period start (in dollars per unit)	$ 17.83		$ 20.94
Interest Income (in dollars per unit)	$ 0	[1]	$ 0	[1]
Expenses (in dollars per unit)	$ (0.34)		$ (0.43)
Realized/Unrealized Income (in dollars per unit )	$ 0.49	[2]	$ 0.45	[2]
Net Income (in dollars per unit)	$ 0.15	[3]	$ 0.02	[3]
Net asset value, period end (in dollars per unit)	$ 17.98		$ 20.96
Ratios to average net assets [Abstract]
Net Investment Loss (in hundredths)	(7.70%)	[4]	(8.10%)	[4]
Expenses before Incentive Fees (in hundredths)	7.80%	[4]	8.20%	[4]
Expenses after Incentive Fees (in hundredths)	7.80%	[4]	8.20%	[4]
Net Income (Loss) (in hundredths)	3.60%	[4]	0.60%	[4]
Total return before incentive fees (in hundredths)	0.80%		0.10%
Total return after incentive fees (in hundredths)	0.80%		0.10%

[1] Amounts less than $0.005 per Unit.

[2] Realized/Unrealized Income is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

[3] Based on change in net asset value per Unit.

[4] Annualized (except for incentive fees if applicable).

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Fair Value Measurements and Disclosures (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Assets and Liabilities Measured at Fair Value [Abstract]
Unrealized currency gain	$ 823,378	$ 802,973
Net fair value	1,787,382	1,617,474
Fair Value Measured on a Recurring Basis [Member]
Assets [Abstract]
Futures	2,181,677	1,817,113
Forwards	237,757	634,871
Total Assets	2,419,434	2,451,984
Liabilities [Abstract]
Futures	816,505	1,102,329
Forwards	638,925	535,154
Total Liabilities	1,455,430	1,637,483
Assets and Liabilities Measured at Fair Value [Abstract]
Unrealized currency gain	823,378	802,973
Net fair value	1,787,382	1,617,474
Fair Value Measured on a Recurring Basis [Member] | Unadjusted Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Futures	2,181,677	1,817,113
Forwards	0	0
Total Assets	2,181,677	1,817,113
Liabilities [Abstract]
Futures	816,505	1,102,329
Forwards	0	0
Total Liabilities	816,505	1,102,329
Assets and Liabilities Measured at Fair Value [Abstract]
Net fair value	1,365,172	714,784
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Futures	0	0
Forwards	237,757	634,871
Total Assets	237,757	634,871
Liabilities [Abstract]
Futures	0	0
Forwards	638,925	535,154
Total Liabilities	638,925	535,154
Assets and Liabilities Measured at Fair Value [Abstract]
Net fair value	$ (401,168)	$ 99,717

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Statements of Income and Expenses (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
INVESTMENT INCOME
Interest income (MS&Co. & Morgan Stanley Wealth Management)	$ 10,299		$ 9,334
EXPENSES
Brokerage fees (MS&Co.)	933,734		1,405,147
Management fees	233,434		468,382
Total Expenses	1,167,168		1,873,529
NET INVESTMENT LOSS	(1,156,869)		(1,864,195)
Trading profit (loss):
Net realized	1,524,745		3,633,938
Net change in unrealized	169,908		(1,629,679)
Total Trading Results	1,694,653		2,004,259
NET INCOME	537,784		140,064
NET INCOME ALLOCATION
Limited Partners	531,785		139,019
General Partner	$ 5,999		$ 1,045
NET INCOME PER UNIT
Limited Partners (in dollars per unit)	$ 0.15	[1]	$ 0.02	[1]
General Partner (in dollars per unit)	$ 0.15	[1]	$ 0.02	[1]
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING (in units)	3,461,216.178		4,417,756.326

[1] Based on change in net asset value per Unit.

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Financial Instruments

3 Months Ended

Mar. 31, 2013

Financial Instruments [Abstract]

Financial Instruments

4.  Financial Instruments

The Partnership trades Futures Interests.  Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price.  Futures Interests are open commitments until settlement date, at which time they are realized.  They are valued at fair value, generally on a daily basis, and the unrealized gains and 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 on open contracts.  The resulting net change in unrealized gains and losses is reflected in the "Net change in unrealized" trading profit (loss) on open contracts from one period to the next on the Statements of Income and Expenses.  The fair value of exchange-traded futures, options and forward contracts is determined by the various futures exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period.  The fair value of foreign currency forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) of the last business day of the reporting period from various exchanges.  The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates, and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period.  Risk arises from changes in the value of these contracts and the potential inability of counterparties to perform under the terms of the contracts.  There are numerous factors which may significantly influence the fair value of these contracts, including interest rate volatility.

The fair value of exchange-traded contracts is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined.  If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.  The fair value of off-exchange-traded contracts is based on the fair value quoted by the counterparty.

The Partnership's contracts are accounted for on a trade-date basis.  The Partnership accounts for its derivative investments as described in Note 5. Derivatives and Hedging as required by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC").  A derivative is defined as a financial instrument or other contract that has all three of the following characteristics:

1) a) One or more "underlyings" and b) one or more "notional amounts" or payment provisions or both;

2) Requires no initial net investment or a smaller initial net investment than would be required for other types of contracts that would be expected to have a similar response relative to changes in market factors; and

3) Terms that require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options contracts, and other financial instruments with similar characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a component of "Trading Equity" on the Statements of Financial Condition, and their longest contract maturities were as follows:

	Net Unrealized Gains (Losses) on Open Contracts							Longest Maturities
Date	Exchange-Traded		Off-Exchange-Traded			Total		Exchange-Traded	Off-Exchange-Traded
	$		$			$
Mar. 31, 2013		2,188,550		(401,168	)		1,787,382	Sep. 2015	Apr. 2013
Dec. 31, 2012		1,517,757		99,717			1,617,474	Jun. 2015	Jan. 2013

In general, the risks associated with off-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to an off-exchange-traded contract.  The Partnership has credit risk associated with counterparty nonperformance.  As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gains (losses) amounts reflected in the Partnership's Statements of Financial Condition.  The net unrealized gains (losses) on open contracts are further disclosed gross by type of contract and corresponding fair value level in Note 6. Fair Value Measurements and Disclosures.

The Partnership also has credit risk because MS&Co. acts as the futures commission merchant or the counterparty, with respect to most of the Partnership's assets. Exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are fair valued on a daily basis, with variations in value settled on a daily basis. MS&Co., which is acting as a commodity futures broker for the Partnership's exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, is required, pursuant to regulations of the Commodity Futures Trading Commission ("CFTC"), to segregate from its own assets, and for the sole benefit of its commodity customers, total cash held by it with respect to exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, including an amount equal to the net unrealized gains (losses) on all open exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts, which, in the aggregate, totaled $61,550,605 and $64,938,716 at March 31, 2013, and December 31, 2012, respectively.  With respect to the Partnership's off-exchange-traded forward currency contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated.  However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in a custody account held at MS&Co. for the benefit of MS&Co. With respect to those off-exchange-traded forward currency contracts, the Partnership is at risk to the ability of MS&Co., the sole counterparty on all such contracts, to perform. The Partnership has a netting agreement with MS&Co.  The primary terms are based on industry standard master agreements.  This agreement, which seeks to reduce both the Partnership's and MS&Co.'s exposure on off-exchange-traded forward currency contracts, should materially decrease the Partnership's credit risk in the event of MS&Co.'s bankruptcy or insolvency.

The General Partner monitors and attempts to control 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 may be subject.  These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics.  In addition, online monitoring systems provide account analysis of futures, forwards and options positions by sector, margin requirements, gain and loss transactions and collateral positions.

The futures, forwards and options traded by the Partnership involve varying degrees of related market risk.  Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership's open positions, and consequently in its earnings, whether realized or unrealized, and cash flow.  Gains and losses on open positions of exchange-traded futures, exchange-traded forward, and exchange-traded futures-styled options contracts are settled daily through variation margin.  Gains and losses on off-exchange-traded forward currency contracts are settled upon termination of the contract.  Gains and losses on off-exchange-traded forward currency options contracts are settled on an agreed-upon settlement date.

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Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurements and Disclosures, Disclosure [Line Items]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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.

March 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		2,181,677		–			n/a		2,181,677
Forwards		–		237,757			n/a		237,757
Total Assets		2,181,677		237,757			n/a		2,419,434
Liabilities
Futures		816,505		–			n/a		816,505
Forwards		–		638,925			n/a		638,925
Total Liabilities		816,505		638,925			n/a		1,455,430
Unrealized currency gain									823,378
*Net fair value		1,365,172		(401,168	)		n/a		1,787,382

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		–		n/a		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								802,973
*Net fair value		714,784		99,717		n/a		1,617,474