10-Q 1 c69929e10vq.txt FORM 10-Q FOR QUARTER ENDING APRIL 30, 2002 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE --- SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2002 ___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-9202 THE FUTURE FUND Exact name of registrant as specified in its charter) State of jurisdiction or incorporation (Illinois) IRS EMPLOYER ID NO. #36-3033727 C/0 HEINOLD ASSET MANAGEMENT. INC. ONE FINANCIAL PLACE 440 S. LASALLE ST-21 FLOOR CHICAGO ILLINOIS 60605 PHONE NUMBER 663-7500 SAME (Former name, former address and former fiscal year, if changed) 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 shortened 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 --- PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF FINANCIAL CONDITION

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -2- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL 30, 2002 and 2001 (UNAUDITED)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -3- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2002 and 2001 (UNAUDITED)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -3A- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL FOR THE SIX MONTHS ENDED APRIL 30, 2002 (UNAUDITED)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. -4- THE FUTURE FUND (An Illinois Limited Partnership) STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED APRIL 30, 2002 AND 2001 (UNAUDITED) 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME (LOSS) (1,732,883) 1,517,314 ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: DUE FROM AFFILIATED BROKER AND GENERAL PARTNERSHIPS 2,124,623 (758,651) INCREASE (DECREASE) IN OTHER LIABILITIES (84,307) (134,701) ------------------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 307,433 623,962 CASH FLOWS FROM FINANCING ACTIVITIES REDEMPTION OF LIMITED PARTNERSHIP UNITS (307,433) (623,962) ------------------------ NET CASH UNSED IN FINANCING ACTIVITIES (307,433) (623,962) CHANGE IN CASH BALANCE 0 0 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS -5- THE FUTURE FUND (AN ILLINOIS LIMITED PARTNERSHIP) NOTES TO FORM 10-Q FINANCIAL STATEMENTS The unaudited interim condensed consolidated financial statements of the Future Fund ("the Fund) included herein have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Funds for the interim periods presented and are not necessarily indicative of a full year's results. In preparing the unaudited interim condensed financials statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. These financial statements should be read in conjunction with the Fund audited financial statements included in the Fund audited financial statements for the year ended October 31,2001., from which the accompanying Statement of Financial Condition was derived. 6 The Future Fund (An Illinois Limited Partnership) Notes to Form 10-Q Financial Statements, Continued Item 2, Management's discussion and analysis of Financial Condition, and operating results for the six months ended April 30, 2002

NOTE A: Ending capital at April 30,2002 is lower than ending capital at October 31, 2002 due to unprofitable trading and redemptions during the period. For the six month period ending April 30,2003, the Partnership's Net Asset Value per Unit decreased from $1,199.83 at October 31, 2001 to $992.54 at April 30, 2002. The majority of the losses occurred from trading activities in November where the NAV decreased by 8.49%. NOTE B:

Net realized and unrealized trading gains (losses) on Futures and Forward Contracts for the six months ended 4/30/2002 is less than net realized and unrealized trading gains (losses) on futures and forward contracts for the six months ended 4/30/2001 due to less profitable trading during the period. Interest income is earned on the Partnership's investment in U.S. Treasury bills and varies monthly according to interest rates, as well as the effect of trading performance and redemptions on the level of interest-bearing funds. Interest income from U.S. Treasury bills decreased by $156,000 for the six months ended April 30,2002 as compared to corresponding period in 2001. Additionally, interest income decreased from lower overall investment in U.S. Treasury bills due to the effect of redemptions and unfavorable trading performance during the six months ended April 30, 2002. NOTE C:

Net realized and unrealized trading gains (Losses) on Futures and Forward Contracts for the three months ended 4/30/2002 is less than net realized and unrealized trading gains (losses) on futures and forward contracts for the three months ended 4/30/2001 due to less profitable trading during the period.

FUTURE FUND 10-Q