UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

þ ANNUAL REPORT PURSUANT TO SECTION 13 orOR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2014~~2015

OR ¨ 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 0-54753

COMMODITY ADVISORS FUND L.P.

(Exact name of registrant as specified in its charter)

Delaware

20-4267496

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

c/o Ceres Managed Futures LLC

522 Fifth Avenue

New York, New York 10036

(Address and Zip Code of principal executive offices)

(855) 672-4468

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Redeemable Units of Limited Partnership Interest

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ¨ No þ

Indicate by check mark if the registrant is not required to file reports pursuant to section 13 or section 15(d) of the Act.

Yes ¨ No þ

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 þ No ¨

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 þ No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this form 10-K þ.

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. (Check one):


Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer þ	Smaller reporting company ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ¨ No þ

Limited Partnership Redeemable Units with aggregate values of $1815,~~309~~934,~~303~~655 of Class A and $~~183~~98,~~140~~461 of Class Z were outstanding and held by non-affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter.

As of February 2829, ~~2015~~2016, there were 139,~~185~~070.~~4398~~6698 Limited Partnership Redeemable Units of Class A outstanding and ~~112~~10.~~0109~~1269 Limited Partnership Redeemable Units of of Class Z outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

[None]

PART I

Item 1. Business.

(a) General Development of of Business. Commodity Advisors Fund L.P. (formerly known as “Energy Advisors Portfolio L.P.”) (the “Partnership”) is a limited partnership which was organized on January 30, 2006, under the limited partnership laws of the ~~State~~ State of Delaware. The Partnership commenced trading on October 1, 2006. ~~Between October 1, 2006 and May 1, 2011, the Partnership was operated pursuant to CFTC Rule 4.13(a)(4).~~ Prior to May 1, 2011, the Partnership’s investment objective was to achieve capital appreciation through speculative trading, directly and indirectly, primarily in energy related investments, including, without limitation, energy futures, energy forwards, options, swaps and other over-the-counter (“OTC”) instruments and securities of energy related companies. Also, prior to May 1, 2011, the Partnership pursued its objective by allocating its capital among various energy focused portfolio managers, each of which had an individual trading strategy, primarily through investments in collective investment vehicles, including those operated by the General Partner (defined below) and, occasionally, through individually managed accounts.

The current objective of the Partnership is to achieve capital appreciation through speculative trading, directly and indirectly, in U.S. and international markets for currencies, interest rates, stock indices, agricultural and energy products and precious and base metals. The Partnership may employ futures, options on futures and forward contracts in those markets. The Partnership may also engage in spot, swap and other derivative transactions with the approval of the General Partner. The commodity interests that are traded by the Partnership, through its investment in the Funds (as defined below), are volatile and involve a high degree of market risk. The General Partner may also determine to invest up to all of the Partnership’s assets in U.S. Treasury bills and/or money market mutual funds, including money market mutual funds managed by Morgan Stanley or its affiliates.

Between June 23, 2006 (commencement of the initial offering period) and October 1, 2006, 9,475 redeemable units of limited partnership interest (“Redeemable Units”) were sold at $1,000 per Redeemable Unit. The Partnership commenced its operations on October 1, 2006. The Partnership privately and continuously offers Redeemable Units to qualified investors. There is no maximum number of Redeemable Units that may be sold by the Partnership. Subscriptions of additional Redeemable Units and additional general partner contributions and redemptions of Redeemable Units for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 are reported in the Statements of Changes in Partners’ Capital on page 3440 under “Item 8. Financial Statements and Supplementary Data.”

Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner (the “General Partner”) and commodity pool operator of the Partnership. The General Partner is wholly owned by Morgan Stanley Smith Barney Holdings LLC (“MSSB Holdings”). MSSB Holdings is ultimately owned by Morgan Stanley. Morgan Stanley is a publicly held company whose shares are listed on the New York Stock Exchange. Morgan Stanley is engaged in various financial services and other businesses. Prior to June 28, 2013, Morgan Stanley indirectly owned a majority equity interest in MSSB Holdings and Citigroup Inc. indirectly owned a minority equity interest in MSSB Holdings. Prior to July 31, 2009, the date as of which MSSB Holdings became its owner, the General Partner was wholly owned by Citigroup Financial Products Inc., a wholly owned subsidiary of Citigroup Global Markets Holdings Inc., the sole owner of which is Citigroup Inc.

During the years ~~year~~ ended December 31, 2015 and 2014, the Partnership’s commodity broker was Morgan Stanley & Co. LLC (“MS&Co.”). During a prior ~~periods~~period covered in this report, Citigroup Global Markets Inc. (“CGM”) also served as a commodity broker.

From inception until March 31, 2011, the Partnership offered two classes of redeemable units of partnership interest: “Class A” Redeemable Units and “Class B” Redeemable Units. As of March 31, 2011, the Partnership no longer offered Class B Redeemable Units. ~~Beginning~~On May 1, 2011, the Partnership began tooffering ~~offer~~“Class ~~two~~A” ~~additional~~Redeemable Units, ~~classes~~“Class ofD” Redeemable Units inand ~~addition~~ “Class Z” Redeemable Units pursuant to ~~Class~~the Aoffering memorandum. All Redeemable Units: ~~“Class~~issued D”prior to May 1, 2011 were deemed Class A Redeemable Units. The rights, liabilities, risks and “fees associated with investment in the Class Z”A Redeemable Units did not change.

Class Z Redeemable Units were first issued on October 1, 2011. As of December 31, ~~2014~~2015, there were no Redeemable Units outstanding in Class D. Class A ~~Redeemable Units~~, Class D ~~Redeemable Units~~ and Class Z ~~Redeemable Units~~ will each be referred to as a “Class” and collectively referred to as the “Classes.” The Class of Redeemable Units that a limited partner of the Partnership (each, a “Limited Partner”) receives upon a subscription will generally depend upon the amount invested in the Partnership or the status of the ~~limited~~Limited ~~partner~~Partner, although the General Partner may determine to offer a particular Class of Redeemable Units to investors at its discretion. Class Z Redeemable Units are offered to certain employees of Morgan Stanley and its subsidiaries (and their family members).

As1 of December 31, 2014, all trading decisions were made for the Partnership by its two trading advisors (each an “Advisor” and collectively the “Advisors”). JE Moody & Company LLC (“JE Moody”) and Aventis Asset Management, LLC (formerly known as Misfit Financial Group, LLC) (“Aventis”) have been selected by the General Partner as the major commodity trading advisors (i.e., commodity trading advisors allocated more than 10% of the Partnerships’ assets). Krom River Investment Management (Cayman) Limited (“Krom River Management”) and Krom River Trading A. G. (“Krom River Trading,” and together with Krom River Management, “Krom River”) were terminated as an advisor as of December 31, 2014. Each Advisor is a registered commodity trading advisor or exempt from such registration. AAA Capital Management Advisors, Ltd. (“AAA”), SandRidge Capital L.P. (“SandRidge”), Sasco Energy Partners LLC (“Sasco”), Cirrus Capital Management LLC (“Cirrus”) and Flintlock Capital Asset Management LLC (“Flintlock”) were terminated as an advisor to the Partnership on April 30, 2011, April 30, 2011, April 30, 2011, August 31, 2013 and October 31, 2012, respectively. Information about advisors that are allocated less than 10% of the Partnership’s assets (“non-major trading advisors”) may not be disclosed to the limited partners. The General Partner may allocate less than 10% of the Partnership’s assets to a new trading advisor or another trading program of a current Advisor at any time. A description of the trading activities and focus of each Advisor is included on page 15 under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”. References herein to an “Advisor” or the “Advisors” may also include, as relevant, AAA, SandRidge, Sasco, Cirrus and Flintlock. The Advisors are not affiliated with one another, are not affiliated with the General Partner, MS&Co. or CGM and are not responsible for the organization or operation of the Partnership. The General Partner will generally allocate the assets of the Partnership to “established” trading advisors (i.e., advisors with established trading strategies), but may also allocate assets to “emerging” trading advisors (i.e., trading advisors in the process of developing and refining their trading strategies). The General Partner has selected and will select commodity trading advisors for the Partnership that it believes possess the potential to be successful traders. The Advisors have various levels of experience in speculatively trading commodity interests and have various levels of experience in managing client funds.

All trading decisions are made for the Partnership by its two trading advisors (each an “Advisor” and collectively, the “Advisors”). JE Moody & Company LLC (“JE Moody”) and Aventis Asset Management, LLC (formerly known as Misfit Financial Group, LLC) (“Aventis”) have been selected by the General Partner as the major commodity trading advisors (i.e., commodity trading advisors allocated less than 10% of the Partnership’s assets) to the Partnership. Each Advisor is a registered commodity trading advisor or exempt from such registration. Cirrus Capital Management LLC (“Cirrus”) and Krom River Investment Management (Cayman) Limited (“Krom River Management”) and Krom River Trading A. G. (“Krom River Trading,” and together with Krom River Management, “Krom River”) were terminated as advisors to the Partnership on August 31, 2013 and December 31, 2014, respectively. Information about advisors that are allocated less than 10% of the Partnership’s assets (“non-major trading advisors”) may not be disclosed to the limited partners. The General Partner may allocate less than 10% of the Partnership’s assets to a new trading advisor or another trading program of a current Advisor at any time. A description of the trading activities and focus of each Advisor is included on page 18 under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”. References herein to an “Advisor” or the “Advisors” may also include, as relevant, Cirrus and Krom River. The Advisors are not affiliated with one another, are not affiliated with the General Partner, MS&Co. or CGM and are not responsible for the organization or operation of the Partnership. The General Partner will generally allocate the assets of the Partnership to “established” trading advisors (i.e., advisors with established trading strategies), but may also allocate assets to “emerging” trading advisors (i.e., trading advisors in the process of developing and refining their trading strategies). The General Partner has selected and will select commodity trading advisors for the Partnership that it believes possess the potential to be successful traders. The Advisors have various levels of experience in speculatively trading commodity interests and have various levels of experience in managing client funds.

Each Advisor is allocated a portion of the Partnership’s assets to manage. The Partnership invests the portion of its assets allocated to each of the Advisors indirectly through investment in the Funds.

On October 1, 2006, the assets allocated to AAA for trading were invested in AAA Master Fund LLC (“AAA Master”), a limited liability company formed under the New York Limited Liability Company Law. The Partnership purchased 723.8213 units of AAA Master with cash equal to $3,315,000. AAA Master permitted accounts managed by AAA using the Energy Program — Futures and Swaps, a proprietary, discretionary trading system, to invest in one trading vehicle. The Partnership fully redeemed its investment in AAA Master on April 30, 2011, for cash equal to $3,469,560.

On October 1, 2006, the assets allocated to SandRidge for trading were invested in CMF SandRidge Master Fund L.P. (“SandRidge Master”), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 2,092.7350 units of SandRidge Master with cash equal to $2,370,000. SandRidge Master permitted commodity pools managed by SandRidge using the Energy Program, a proprietary, discretionary trading system, to invest together in one trading vehicle. The Partnership fully redeemed its investment in SandRidge Master on April 30, 2011, for cash equal to $3,129,957.

On April 1, 2007, a portion of the Partnership’s assets were invested in Velite Energy L.P. (“Velite Energy”), a limited partnership organized under the partnership laws of the State of Texas. The Partnership invested $12,000,000 in Velite Energy. The Partnership fully redeemed its investment in Velite Energy on March 31, 2011, for cash equal to $9,922,742.

On April 1, 2009, the assets allocated to Sasco for trading were in invested in CMF Sasco Master Fund L.P. (“Sasco Master”), a limited partnership organized under the partnership laws of the State of New York. The Partnership purchased 6,000.0000 units of Sasco Master with cash equal to $6,000,000. Sasco Master permitted commodity pools managed by Sasco using the Energy Program, a proprietary, discretionary trading system, to invest together in one trading vehicle. The Partnership fully redeemed its investment in Sasco Master on April 30, 2011, for cash equal to $7,730,465.

On January 1, 2011, the assets allocated to Cirrus for trading were invested in CMF Cirrus Master Fund L.P. (“Cirrus Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased 4,000.0000 units of Cirrus Master with cash equal to $4,000,000. Cirrus Master permitted accounts managed by Cirrus using the Energy Program, a proprietary, systematic trading program, to invest together in one trading vehicle. The Partnership fully redeemed its investment in Cirrus Master on August 31, 2013, for cash equal to $1,260,276.

On May 1, 2011, the assets allocated to Flintlock for trading were invested in FL Master Fund L.P. (“FL Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in FL Master with cash equal to $4,171,892. FL Master permitted accounts managed by Flintlock using the Flintlock Commodity Opportunities Partners, LP at 200% leverage, a proprietary, systematic trading program, to invest together in one trading vehicle. The Partnership fully redeemed its investment in FL Master on October 31, 2012, for cash equal to $2~~,046,008.~~

On May 1, 2011, the assets allocated to Krom River for trading were invested in the KR Master Fund L.P. (“KR Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in KR Master with cash equal to $13,913,306. KR Master permitted commodity pools managed by Krom River using the Krom River Commodity Program, a proprietary, discretionary trading system, to invest together in one trading vehicle. The Partnership fully redeemed its investment in KR Master on December 31, 2014, for cash equal to $1,342,427.

On May 1, 2011, the assets allocated to Aventis for trading were invested in MB Master Fund L.P. (“MB Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in MB Master with cash equal to $12,756,614. MB Master permits commodity pools managed by Aventis using the Aventis Diversified Commodity Strategy (formerly the Barbarian Program), a proprietary, discretionary trading system, to invest together in one trading vehicle. The General Partner is also the general partner of MB Master. Individual and pooled accounts currently managed by Aventis, including the Partnership, are permitted to be limited partners of MB Master. The General Partner and Aventis believe that trading through this structure should promote efficiency and economy in the trading process.

On May 1, 2011, the assets allocated to JE Moody for trading were invested in JEM Master Fund L.P. (“JEM Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased 12,594.1917 units of JEM Master with cash equal to $12,753,614. JEM Master permits accounts managed now or in the future by JE Moody using the JEM Commodity Relative Value Program, a proprietary, systematic trading program, to invest together in one trading vehicle. The General Partner is also the general partner of JEM Master. Individual and pooled accounts currently managed by JE Moody, including the Partnership, are permitted to be limited partners of JEM Master. The General Partner and JE Moody believe that trading through this structure should promote efficiency and economy in the trading process.

~~The~~MB ~~General~~Master’s ~~Partner~~and isJEM ~~not~~Master’s ~~aware~~(collectively, the “Funds”) trading of ~~any~~futures, ~~material~~forward, ~~changes~~swap toand ~~the~~option ~~trading~~contracts, ~~programs~~if applicable, ~~discussed~~on ~~above~~commodities ~~during~~is done primarily on U.S. and foreign commodity exchanges. During the ~~year~~years ended December 31, 2015 and 2014, the Funds engaged in such trading through commodity brokerage accounts maintained with MS&Co. During a prior period covered in this report, the Funds engaged in such trading through commodity brokerage accounts maintained with CGM. References to the “Funds” included in this report may include any or all of Cirrus Master and KR Master, as applicable.

MB Master~~’s,~~ ~~KR Master’s (prior to its full redemption on December 31, 2014)~~ and JEM Master’s ~~(collectively,~~have ~~the “Funds”)~~entered ~~trading~~into ofa futures, ~~forward,~~brokerage ~~swap~~account ~~and~~agreement ~~option~~with ~~contracts,~~MS&Co. ifThe ~~applicable,~~Partnership onhas ~~commodities~~also entered isinto ~~done~~a ~~primarily~~futures onbrokerage ~~U.S.~~account ~~and~~agreement ~~foreign~~with ~~commodity exchanges~~MS&Co. ~~During~~The ~~the reporting period~~Partnership, ~~the~~through ~~Funds~~its ~~engaged~~investment in ~~such~~MB ~~trading~~Master ~~through~~and ~~commodity brokerage~~JEM ~~accounts~~Master, ~~maintained~~pays ~~with~~ MS&Co. ortrading ~~CGM,~~fees asfor ~~applicable. References to~~ the ~~“Funds”~~clearing ~~included~~and, inwhere ~~this~~applicable, ~~report~~execution ~~may~~of ~~include~~transactions ~~any~~as orwell ~~all~~as exchange, ofclearing, ~~AAA Master~~user, ~~SandRidge Master~~give-up, ~~Velite~~floor ~~Energy,~~brokerage ~~Sasco~~and ~~Master,~~National FLFutures ~~Master~~Association ~~and~~(“NFA”) ~~Cirrus~~fees ~~Master,~~(the ~~as applicable~~“clearing fees”).

AThe ~~limited~~Partnership ~~partner~~has ofentered ~~the~~into ~~Funds~~a ~~may~~selling ~~withdraw~~agent ~~all~~agreement orwith ~~part~~Morgan ofStanley ~~its~~Smith ~~capital~~Barney ~~contribution~~LLC ~~and~~(doing ~~undistributed~~business ~~profits,~~as ifMorgan ~~any,~~Stanley ~~from~~Wealth ~~the~~Management) ~~Funds~~(“Morgan asStanley ofWealth ~~the~~Management”) ~~end~~(as ofamended, ~~any day (~~the “~~Redemption~~Selling ~~Date~~Agreement”). Under the Selling Agreement, ~~provided~~the Partnership pays Morgan Stanley Wealth Management a ~~request~~monthly ~~for~~ongoing ~~redemption~~selling ~~has~~agent ~~been~~fee ~~made~~equal to (i) 2.0% per year of the ~~General~~adjusted ~~Partner~~net atassets ~~least~~of ~~three~~Class ~~days~~A inRedeemable ~~advance~~Units and (ii) 0.75% per year of the ~~Redemption~~adjusted ~~Date~~net assets of Class D Redeemable Units. ~~Such~~The ~~withdrawals~~Partnership ~~are~~does ~~classified~~not aspay aan ~~liability~~ongoing ~~when~~selling agent fee with respect to Limited Partners holding Class Z ~~the~~Redeemable ~~limited~~Units. ~~partner~~Morgan ~~elects~~Stanley Wealth Management pays a portion of its ongoing selling agent fees to ~~redeem~~properly registered and/or ~~informs~~exempted ~~the~~financial ~~Funds~~advisors who have sold Class A or Class D Redeemable Units.

The General Partner is not aware of any material changes to any of the trading programs discussed above during the year ended December 31, 2015.

In July 2015, the General Partner delegated certain administrative functions to SS&C Technologies, Inc., a Delaware corporation, currently doing business as SS&C GlobeOp (the “Administrator”). Pursuant to a master services agreement, the Administrator furnishes certain administrative, accounting, regulatory, reporting, tax and other services as agreed from time to time. In addition, the Administrator maintains certain books and records of the Partnership. The costs of retaining the Administrator are allocated among the pools operated by the General Partner, including the Partnership.

Generally, a limited partner in the Funds withdraws all or part of its capital contribution and undistributed profits, if any, from the Funds as of the end of any month (the “Redemption Date”) after a request has been made to the General Partner at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner elects to redeem and informs the Funds. However, a limited partner may request a withdrawal as of the end of any day if such request is received by the General Partner at least three days in advance of the proposed withdrawal day.

Management and incentive fees are charged at the Partnership level. All clearing fees are borne by the Funds. Professional fees and other expenses are borne by the Funds and allocated to the Partnership, and also charged directly at the Partnership level. All other fees are charged at the Partnership level.

~~For~~3 ~~the period January 1, 2014 through December 31, 2014, the approximate average market sector distribution for the Partnership was as follows:~~

AsFor ~~of December 31, 2014,~~ the ~~Partnership~~period ~~owned~~January ~~approximately 3.6% and 29.4% of MB Master and JEM Master~~1, ~~respectively.~~ At2015 through December 31, ~~2013~~2015, the ~~Partnership~~approximate ~~owned~~average ~~approximately~~market ~~3.6%, 11.8% and 30.1% of MB Master, KR Master and JEM Master, respectively. It is the intention of the Partnership to continue to invest in the Funds (other than KR Master). The~~sector ~~performance~~distribution offor the Partnership iswas ~~directly affected by the performance of the Funds. Expenses to investors~~ as afollows: ~~result of the investment in the Funds are approximately the same as investing directly and redemption rights are not affected.~~

LOGO

1As of December 31, 2015, the Partnership owned approximately 5.4% and 39.0% of MB Master and JEM Master, respectively. At December 31, 2014, the Partnership owned approximately 3.6% and 29.4% of MB Master and JEM Master, respectively. It is the intention of the Partnership to continue to invest in the Funds. The performance of the Partnership is directly affected by the performance of the Funds. Expenses to investors as a result of the investment in the Funds are approximately the same as investing directly and redemption rights are not affected.

The General Partner and each ~~limited~~Limited ~~partner~~Partner share in the profits and losses of the Partnership in proportion to the amount of Partnership interest owned by each, except that no ~~limited~~Limited ~~partner~~Partner shall be liable for obligations of the Partnership in excess of their capital contribution and profits, if any, net of distributions and losses, if any.

The ~~third~~affairs ~~amended and restated limited partnership agreement~~ of the Partnership ~~(the~~will ~~“Limited~~be ~~Partnership~~wound ~~Agreement”)~~up ~~provides that~~and the Partnership ~~will~~liquidated beas ~~liquidated~~soon as practicable upon the first to occur of the following: (i) the vote to dissolve the Partnership by ~~limited~~Limited ~~partners~~Partners owning more than 50% of all Classes of Redeemable Units then outstanding (excluding Redeemable Units owned by the General Partner, an affiliate of the General Partner or any of their employees), notice of which is sent by registered mail to the General Partner not less than ninety (90) days prior to the effective date of such dissolution; (ii) assignment by the General Partner of all of ~~its~~ interest in the Partnership, or the withdrawal, removal, bankruptcy or any other event that causes the General Partner to cease to be a general partner under the Delaware Revised Uniform Limited Partnership Act, unless the Partnership is continued as ~~provided~~described in the limited partnership agreement (the “Limited Partnership Agreement”); or (iii) the occurrence of any event which shall make it unlawful for the existence of the Partnership to be continued. In addition, the General Partner may, in its sole discretion, cause the Partnership to dissolve if the Partnership’s aggregate ~~Net~~net ~~Assets~~assets ~~of the Partnership~~ decline to less than $1,000,000.

The General Partner administers the business and affairs of the Partnership~~. Prior to May 1~~, ~~2011,~~including ~~the~~selecting ~~Partnership~~one ~~paid~~or ~~the~~more ~~General~~advisors ~~Partner~~to ~~an administrative~~make ~~fee~~trading indecisions ~~return~~ for ~~its administrative services to~~ the Partnership ~~equal to 0~~.~~25%~~ ~~per~~The ~~year of Net Assets of the~~ Partnership, ~~payable~~pays ~~monthly, based on month-end Net Assets. In addition, prior to May 1, 2011,~~ the ~~Partnership paid the~~ General Partner a ~~management~~monthly administrative fee in return for its services ~~as trading manager equal~~ to ~~1.0% per year of Net Assets of~~ the Partnership, ~~payable monthly based on month-end Net Assets. Further, prior to May 1, 2011,~~ (the ~~Partnership paid the~~ “General Partner ~~an incentive~~ fee”) ~~for its services as trading manager equal to 10% of the Partnership’s New Trading Profits earned each calendar year. Since May 1~~(formerly, ~~2011,~~ the ~~Partnership pays the General Partner a monthly~~ administrative fee) ~~in return for its services to the Partnership~~ equal to 1/1212th of 1.0% (1.0% per year) ~~per class~~ of month-end Net Assets per Class, for each outstanding Class. Month-end Net Assets per Class, for the purpose of calculating the ~~administrative~~General Partner fee are Net Assets, as defined in the Limited Partnership Agreement, prior to the reduction of the current month’s ~~management~~incentive fee accrual, ~~incentive~~the ~~fee~~monthly ~~accrual~~management fees, the ~~administrative~~General Partner fee, the ongoing selling agent fees and any redemptions or distributions as of the end of such month. This fee may be increased or decreased at any time at the discretion of the General Partner.

~~The~~4 General Partner, on behalf of the Partnership, entered into management agreements (each, a “Management Agreement” and together, the “Management Agreements”) with each of the Advisors, pursuant to which the Advisors manage the Partnership’s assets. Prior to May 1, 2011, the Partnership indirectly paid its pro rata portion of the operating expenses of the collective investment vehicles in which the Partnership invested. The Partnership also paid the management and incentive fees incurred in connection with individually managed accounts. Since May 1, 2011, the Partnership pays each Advisor a monthly management fee ranging from 1.0% to 2.0% per year of the adjusted month-end Net Assets of each Class of Redeemable Units allocated to each respective Advisor. Aventis receives a monthly management fee equal to 1.25% per year of month-end Net Assets allocated to Aventis. Prior to March 1, 2014, Aventis received a monthly management fee equal to 1.50% per year. For the period from October 1, 2013 to its termination on December 31, 2014, Krom River received a monthly management fee equal to 1.0% per year of month-end Net Assets allocated to Krom River. Prior to October 1, 2013, Krom River received a monthly management fee equal to 2.0% per year. JE Moody receives a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to JE Moody. Flintlock received a monthly management fee equal to 1.5% per year of month-end Net Assets allocated to Flintlock. Cirrus received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to Cirrus. AAA received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to AAA. SandRidge received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to SandRidge. Sasco received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to Sasco. Month-end Net Assets, for the purpose of calculating management fees are Net Assets, as defined in the Limited Partnership Agreement, prior to the reduction of the current month’s incentive fee accrual, the monthly management fee, the general partner’s management fee, the ongoing selling agent fees and any allocable redemptions or distributions as of the end of such month.

InThe ~~addition,~~General ~~the Partnership pays or paid each Advisor an incentive fee~~Partner, ~~payable~~on ~~quarterly,~~behalf ~~equal to 20% (17% in the case~~ of ~~Sasco) of~~ the ~~New Trading Profits~~Partnership, asentered ~~defined~~into inmanagement agreements (each, a “Management Agreement,” ~~earned~~and ~~by each Advisor for the Partnership during each calendar quarter. To the extent an Advisor incurs a loss for the Partnership~~together, the ~~Advisor~~“Management ~~will~~Agreements”) ~~not~~with beeach ~~paid incentive fees until the Advisor recovers the net loss incurred and earns additional new trading profits for the Partnership. In allocating the assets~~ of the ~~Partnership among the~~ Advisors, ~~the~~pursuant ~~General~~to ~~Partner~~which ~~considers each Advisor’s past performance, trading style, volatility of markets traded and fee requirements. The General Partner may modify or terminate~~ the ~~allocation of assets to the~~ Advisors ~~and~~manage ~~may allocate~~ the ~~assets~~Partnership’s ~~to additional advisors at any time~~assets.

~~Each~~Aventis ~~Management~~receives a monthly management fee equal to 1.25% per year of month-end Net Assets allocated to Aventis. Prior to March 1, 2014, Aventis received a monthly management fee equal to 1.50% per year. JE Moody receives a monthly management fee equal to 1.5% per year of month-end Net Assets allocated to JE Moody. Prior to January 1, 2016, JE Moody received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to JE Moody. For the period from October 1, 2013 to its termination on December 31, 2014, Krom River received a monthly management fee equal to 1.0% per year of month-end Net Assets allocated to Krom River. Prior to October 1, 2013, Krom River received a monthly management fee equal to 2.0% per year. Cirrus received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to Cirrus, prior to its termination on August 31, 2013. Month-end Net Assets, for the purpose of calculating management fees are Net Assets, as defined in the Limited Partnership Agreement, ~~may~~prior beto ~~terminated~~the byreduction ~~either~~of ~~party~~the current month’s incentive fee accrual, the monthly management fee, the General Partner fee, the ongoing selling agent fees and any allocable redemptions or distributions as of the end of such month.

~~Prior~~During and prior to ~~May~~the 1,fourth ~~2011~~quarter of 2013, the Partnership ~~paid~~and ~~CGM~~the Funds entered into a ~~distribution~~customer ~~fee~~agreement of(the up“CGM toCustomer Agreement”) ~~0.75%~~with ~~per~~CGM ~~year~~whereby ofCGM ~~net~~provided ~~assets~~services which included, among other things, the execution of transactions for the ~~units~~Funds’ ~~sold,~~respective ~~payable~~accounts ~~monthly~~in ~~out~~accordance with orders placed by the Advisors. The Partnership paid CGM exchange, ofgive-up, user, clearing, floor brokerage and National Futures Association (“NFA”) fees (collectively, the ~~General~~“Original ~~Partner’s~~CGM ~~management~~clearing ~~fee~~fees”) through its investment in the Funds.

~~Since May 1~~Additionally, ~~2011,~~during ~~the~~and ~~Partnership~~prior ~~has~~to ~~paid~~the ~~Morgan~~third ~~Stanley Smith~~quarter ~~Barney~~of ~~LLC~~2013, ~~doing~~the ~~business~~Partnership asalso ~~Morgan~~paid ~~Stanley Wealth Management (“Morgan Stanley Wealth Management”)~~ a ~~monthly~~service ~~ongoing selling agent~~ fee ~~equal~~ to ~~(i)~~CGM ~~2.0%~~through ~~per~~its ~~year~~investment ofin the Funds ~~adjusted net assets of Class A Redeemable Units and~~ (~~ii)~~together ~~0.75% per~~with ~~year of~~ the ~~adjusted~~Original ~~net~~CGM ~~assets~~clearing offees, ~~Class~~the D“CGM ~~Redeemable~~clearing ~~Units~~fees”). ~~The~~CGM ~~Partnership~~clearing ~~will~~fees ~~not~~were ~~pay~~allocated ~~an ongoing selling agent fee with respect~~ to ~~Limited~~the ~~Partners~~Partnership ~~holding~~based ~~Class~~on Zits ~~Redeemable~~proportionate ~~Units.~~share ~~For purposes~~ of ~~calculating~~each ~~the~~Fund. ~~ongoing~~All ~~selling agent fee, adjusted net assets are Month-end Net assets, prior to the reduction~~ of the ~~current month~~Partnership’s ~~incentive~~assets ~~fee~~that ~~accrual,~~were ~~the~~not ~~monthly~~held ~~management fee,~~ in the ~~administrative~~Funds’ ~~fee,~~accounts ~~the~~at ~~ongoing~~CGM ~~selling~~were ~~agent~~deposited ~~fee~~in ~~and any allocable redemptions or distributions as of~~ the ~~end~~Partnership’s ofaccounts ~~such~~at ~~month~~CGM. The Partnership’s ~~and~~cash ~~Morgan~~was ~~Stanley~~deposited ~~Wealth~~by ~~Management~~CGM ~~are~~in ~~parties~~segregated tobank aaccounts ~~Selling~~to ~~Agreement~~the ~~(“Selling~~extent ~~Agent~~required ~~Agreement”)~~by ~~which~~Commodity ~~reflects~~Futures ~~the~~Trading ~~terms~~Commission ~~described above~~(“CFTC”) regulations.

~~During the fourth quarter of 2013, the Partnership entered into a customer agreement with MS&Co. (the “MS&Co. Customer Agreement”). The Partnership has terminated the~~ CGM ~~Customer~~paid ~~Agreement (defined below). Under~~ the ~~MS&Co. Customer Agreement, the~~ Partnership will pay trading fees for the clearing and, where applicable, execution of transactions, as well as exchange, clearing, user, give-up, floor brokerage and National Futures Association (“NFA”) fees (collectively, the “MS&Co. clearing fees,” and together with the CGM clearing fees (defined below), the “clearing fees”) through its investment in the Funds. MS&Co. clearing fees are allocated to the Partnership based on its proportionate share of each Fund. All of the Partnership’s assets not held in the Funds’ accounts at MS&Co. are deposited in the Partnership’s account at MS&Co. The Partnership’s cash is deposited by MS&Co. in segregated bank accounts to the extent required by Commodity Futures Trading Commission (“CFTC”) regulations. MS&Co. has agreed to pay the Partnership interest on 100% of the average daily equity maintained in cash in the Partnership’s (or the Partnership’s allocable portion of a Fund’s) brokerage account at a 30-day U.S. Treasury bill rate ~~equal~~determined toweekly ~~the~~by ~~monthly~~CGM ~~average~~based of on the 4average noncompetitive yield on 3-~~week~~month U.S. Treasury ~~bill~~bills ~~discount~~maturing ~~rate.~~in ~~The~~30 ~~MS&Co.~~days ~~Customer~~from ~~Agreement~~the ~~may~~date ~~generally~~on bewhich such ~~terminated~~weekly ~~upon~~rate ~~notice~~is ~~by either party~~determined.

~~Prior~~During tothe ~~May~~fourth 1,quarter ~~2011~~of 2013, the Partnership and the Funds entered into a customer agreement with MS&Co. (the “~~CGM~~MS&Co. Customer Agreement”). ~~with~~The ~~CGM~~Partnership ~~whereby~~and the Funds have terminated the CGM ~~provided services~~Customer ~~which~~Agreement. ~~included,~~Under ~~among~~the ~~other~~MS&Co. ~~things~~Customer Agreement, the Partnership pays trading fees for the clearing and, where applicable, execution of transactions, ~~for~~as ~~the~~well ~~Funds’~~as ~~account~~exchange, inclearing, ~~accordance~~user, ~~with~~give-up, ~~orders~~floor ~~placed~~brokerage byand NFA fees (collectively, the ~~Advisors~~“MS&Co. ~~The~~clearing ~~Partnership~~fees” ~~paid~~and ~~CGM~~together ~~commercially~~with ~~reasonable~~the ~~commission~~CGM ~~rates~~clearing (fees, the “~~Brokerage Commissions~~clearing fees”) through its investment in the Funds. ~~Brokerage~~MS&Co. ~~Commissions~~clearing ~~included~~fees ~~exchange,~~are ~~give-up,~~allocated ~~user,~~to ~~clearing,~~the ~~floor~~Partnership ~~brokerage~~based ~~and~~on ~~NFA~~its ~~fees~~proportionate share of each Fund. All of the Partnership’s assets not held in the Funds’ accounts at MS&Co. are deposited in the Partnership’s account at MS&Co. The Partnership’s cash is deposited by MS&Co. in segregated bank accounts to the extent required by CFTC regulations. MS&Co. has agreed to pay the Partnership interest on 100% of the average daily equity maintained in cash in the Partnership’s (~~collectively,~~or the ~~“Original~~Partnership’s ~~CGM~~allocable ~~clearing~~portion ~~fees”~~of a Fund’s) brokerage account at a rate equal to the monthly average of the 4-week U.S. Treasury bill discount rate. The MS&Co. Customer Agreement may generally be terminated upon notice by either party.

As5 of May 1, 2011, the Funds were no longer required to pay Brokerage Commissions. The Partnership, however, continued to pay clearing fees through its investment in the Funds. Additionally, for part of the third quarter of 2012 and through part of the third quarter of 2013, the Partnership also paid a service fee to CGM through its investment in the Funds (together with the Original CGM clearing fees, the “CGM clearing fees”). CGM clearing fees were allocated to the Partnership based on its proportionate share of each Fund. All of the Partnership’s assets that were not held in the Funds’ accounts at CGM were deposited in the Partnership’s accounts at CGM. The Partnership’s cash was deposited by CGM in segregated bank accounts to the extent required by CFTC regulations. The CGM Customer Agreement gave the Funds the legal right to net unrealized gains and losses on open futures and forward contracts.

~~Prior to May 1, 2011, CGM generally~~ (ib) ~~paid~~Financial ~~monthly~~Information ~~interest~~about toSegments. aThe ~~Fund~~Partnership’s ~~commodity~~ ~~brokerage~~business ~~account~~consists ~~on 100%~~ of ~~the~~only one ~~average~~segment, ~~daily~~speculative ~~equity~~trading ~~maintained in cash in the account at a 30-day Treasury bill rate determined by CGM and/or (ii) placed up to all~~ of ~~the~~ commodity ~~brokerage account assets in 90-day Treasury bills and paid the account 100% of the interest earned on the Treasury bills purchased~~interests. AsThe ~~of May 1, 2011, CGM paid the~~ Partnership ~~interest~~does onnot ~~100%~~engage ~~of the average daily equity maintained~~ in ~~cash~~sales inof ~~the~~goods ~~Partnership’s (~~or ~~the~~services. The Partnership’s ~~allocable portion~~net ofincome ~~a Fund’s brokerage account~~(loss) atfrom aoperations ~~30-day~~for ~~U.S.~~the ~~Treasury~~years ~~bill~~ended ~~rate~~December ~~determined~~31, ~~weekly~~2015, by2014, ~~CGM~~2013, ~~based~~2012 onand ~~the~~2011 ~~average~~is ~~non-competitive~~set forth ~~yield~~under on“Item ~~3-month U~~6.S. ~~Treasury~~Selected ~~bills~~Financial ~~maturing~~Data.” inThe 30Partnership’s ~~days~~capital ~~from~~as ~~the~~of ~~date~~December on31, ~~which~~2015 ~~such~~was ~~weekly rate is determined~~$11,926,129.

Clearing fees will be paid for the life of the Partnership, although the rate at which such fees are paid may be changed.

(b) Financial Information about Segments. The Partnership’s business consists of only one segment, speculative trading of commodity interests. The Partnership does not engage in sales of goods or services. The Partnership’s net income (loss) from operations for the years ended December 31, 2014, 2013 and 2012 is set forth under “Item 6. Selected Financial Data.” The Partnership’s Capital as of December 31, 2014 was $18,035,434.

See Paragraphs (a) and (b) above.

(i) through (xii) — Not applicable.

(xiii) — The Partnership has no employees.

(d) Financial Information About Geographic Areas. The Partnership does not engage in sales of goods or services or own any long-lived assets, and therefore this item is not applicable.

(e) Available Information. The Partnership does not have an internet address. The Partnership will provide paper copies of its ~~annual~~Annual ~~report~~Report on Form 10-K, ~~quarterly~~Quarterly ~~reports~~Reports on Form 10-Q, ~~current~~Current ~~reports~~Reports on Form 8-K and any amendments to these reports free of charge upon request.

(f) Reports to Security Holders. Not applicable.

(g) Enforceability of Civil Liabilities Against Foreign Persons. Not applicable.

(h) Smaller Reporting Companies. Not applicable.

Item 1A. Risk Factors.

As a result of leverage, small changes in the price of the Partnership’s positions may result in major losses.

The trading of commodity interests is speculative, volatile and involves a high degree of leverage. A small change in the market price of a commodity interest contract can produce major losses for the Partnership. Market prices can be influenced by, among other things, changing supply and demand relationships, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events, weather and climate conditions, insects and plant disease, purchases and sales by foreign countries and changing interest rates.

An investor may lose all of its investment.

Due to the speculative nature of trading commodity interests, an investor could lose all of its investment in the Partnership.

The Partnership will pay substantial fees and expenses regardless of profitability.

Regardless of its trading performance, the Partnership will incur fees and expenses, including ongoing selling agent, management and General ~~administrative~~Partner fees. Substantial incentive fees may be paid to one or more of the advisors even if the Partnership experiences a net loss for the full year.

An investor’s ability to redeem or transfer Redeemable Units is limited.

An investor’s ability to redeem ~~units~~Redeemable Units is limited, and no market exists for the Redeemable Units.

Conflicts of interest exist.

The Partnership is subject to numerous conflicts of interest including those that arise from the facts that:

The General Partner and the Partnership’s/ Funds’ commodity broker are affiliates;

2. Each of the Advisors, the Partnership’s/Funds’ commodity broker and their respective principals and affiliates may trade in commodity interests for their own accounts; ~~and~~

3. An investor’s financial advisor will receive ongoing compensation for providing services to the investor’s account. with respect to Class A and Class D Redeemable Units; and

The General Partner, on behalf of the Partnership, may purchase money market mutual fund shares from mutual fund affiliated and/or unaffiliated with the General Partner.

Investing in Redeemable Units might not provide the desired diversification of an investor’s overall portfolio.

One of the objectives of the Partnership is to add an element of diversification to a traditional stock and bond portfolio, but any benefit of portfolio diversification is dependent upon the Partnership, through its investments in the Funds, achieving positive returns and such returns being independent of stock and bond market returns.

Past performance is no assurance of future results.

The Advisors’ trading strategies may not perform as they have performed in the past. The Advisors have from time to time incurred substantial losses in trading on behalf of clients.

An investor’s tax liability may exceed cash distributions.

Investors are taxed on their share of the Partnership’s income, even though the Partnership does not intend to make any distributions.

Regulatory changes could restrict the Partnership’s operations and increase its operational costs.

Regulatory changes could adversely affect the Partnership by restricting its markets or activities, limiting its trading and/or increasing the costs or taxes to which investors are subject. Pursuant to the mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), signed into law on July 21, 2010, the CFTC and the Securities and Exchange Commission (the “SEC”) have promulgated rules to regulate ~~swaps~~swap dealers and to mandate additional reporting and disclosure requirements and continue to promulgate rules regarding capital and margin requirements, to require that certain swaps be traded on an exchange or a swap execution facility, ~~to mandate additional reporting~~ and ~~disclosure requirements and~~ to require that derivatives (such as those traded by the Partnership) be moved into central clearinghouses. InThe ~~addition,~~CFTC and the prudential regulators that oversee ~~many~~ swap dealers have ~~also~~adopted ~~proposed~~ rules regarding ~~capital~~margin requirements for ~~such~~certain ~~swap~~derivatives. ~~dealers~~In addition, the CFTC and such prudential regulators have proposed or adopted, respectively, rules regarding margin capital requirements for ~~derivatives~~swap dealers. These rules may negatively impact the manner in which swap contracts are traded and/or settled, increase the ~~costs~~ cost of such ~~trades~~trading, and limit trading by speculators (such as the Partnership) in futures and OTC markets.

Speculative position and trading limits may reduce profitability.

The CFTC and U.S. commodity exchanges have established “speculative position limits” on the maximum net long or net short positions which any person or a group of persons may hold or control in particular futures, options on futures and swaps that perform a significant price discovery function. Most commodity exchanges also limit the amount of fluctuation in commodity ~~futures~~ futures contract prices on a single trading day. The Advisors believe that established speculative position and trading limits will not have a materially adverse effect on trading for the Partnership. The trading instructions of an ~~advisor~~Advisor, however, ~~may~~ may have to be modified, and positions held indirectly by the Partnership through its investments in the Funds may have to be liquidated, in order to avoid exceeding these limits. Such modification or liquidation could adversely affect the ~~operations~~ operations and profitability of the Partnership by increasing transaction costs to liquidate positions and foregoing potential profits on the liquidated positions.

In November 2013, the CFTC proposed new rules that, if adopted in substantially the same form, will impose position limits on certain futures and option contracts and physical commodity swaps that are “economically equivalent” to such contracts. If enacted, these rules could have an adverse effect on the Advisors’ trading for the Partnership.

Item 2. Properties.

The Partnership does not own or lease any properties. The General Partner operates out of facilities provided by Morgan Stanley and/or one of its subsidiaries.

Item 3. Legal Proceedings.

This section describes the major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which MS&Co. or its subsidiaries is a party or to which any of their property is subject. There are no material legal proceedings pending against the Partnership or the General Partner.

On June 1, 2011, Morgan Stanley & Co. Incorporated converted from a Delaware corporation to a Delaware limited liability company. As a result of that conversion, Morgan Stanley & Co. Incorporated is now named Morgan Stanley & Co. LLC (“MS&Co.” or the “Company”).

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 (“SEC”) as required by the Securities Exchange Act of 1934 (the “Exchange Act”), 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, ~~please~~we refer you to the “Legal Proceedings” section of Morgan Stanley’s SEC 10-K filings for 2015, 2014, 2013, 2012, ~~2011~~ and ~~2010~~2011.

In addition to the matters described in those filings, in the normal course of business, each of Morgan Stanley and MS&Co. 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 legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Each of Morgan Stanley and MS&Co. is also involved, from time to time, in investigations and proceedings by governmental and/or regulatory agencies or self-regulatory organizations, certain of which may result in adverse judgments, fines or penalties. The number of these investigations and proceedings has increased in recent years with regard to many financial services institutions, including Morgan Stanley and MS&Co.

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.

Regulatory and Governmental Matters.

~~MS&Co.~~The Company has received subpoenas and requests for information from certain federal and state regulatory and governmental entities, including among others various members of the RMBS Working Group of the Financial Fraud Enforcement Task Force, such as the United States Department of Justice, Civil Division and several state Attorney General’s Offices, concerning the origination, financing, purchase, securitization and servicing of subprime and non-subprime residential mortgages and related matters such as residential mortgage backed securities (“RMBS”), collateralized debt obligations (“CDOs”), structured investment vehicles (“SIVs”) and credit default swaps backed by or referencing mortgage pass-through certificates. These matters, some of which are in advanced stages, include, but are not limited to, investigations related to the Company’s due diligence on the loans that it purchased for securitization, the Company’s communications with ratings agencies, the Company’s disclosures to investors, and the Company’s handling of servicing and foreclosure related issues.

4On February 25, 2015, the Company reached an agreement in principle with the United States Department of Justice, Civil Division and the United States Attorney’s Office for the Northern District of California, Civil Division (collectively, the “Civil Division”) to pay $2.6 billion to resolve certain claims that the Civil Division indicated it intended to bring against the Company. That settlement was finalized on February 10, 2016.

In May 2014, the California Attorney ~~These~~General’s ~~matters~~Office (“CAAG”), ~~some~~which is one of ~~which~~the ~~are~~members inof ~~advanced~~the ~~stages,~~RMBS ~~include~~Working Group, ~~but~~indicated ~~are~~that ~~not~~it ~~limited~~has made certain preliminary conclusions that the Company made knowing and material misrepresentations regarding RMBS and that it knowingly caused material misrepresentations to be made regarding the Cheyne SIV (defined below), ~~investigations~~which ~~related~~issued securities marketed to ~~MS&Co~~the California Public Employees Retirement System.’s ~~due~~The ~~diligence~~CAAG onhas ~~the~~further ~~loans~~indicated that it ~~purchased~~believes ~~for securitization,~~the ~~MS&Co.~~Company’s ~~communications~~conduct ~~with~~violated ~~ratings~~California ~~agencies,~~law ~~MS&Co.’s~~and ~~disclosures~~that toit ~~investors~~may seek treble damages, penalties and ~~MS&Co~~injunctive relief.’s ~~handling~~The ofCompany ~~servicing~~does not agree with these conclusions and ~~foreclosure~~has ~~related~~presented ~~issues~~defenses to them to the CAAG.

OnIn ~~February~~October 252014, ~~2015, MS&Co. reached an agreement in principle with~~ the ~~United~~Illinois ~~States Department of Justice, Civil Division and the United States~~ Attorney General’s Office ~~for the Northern District of California, Civil Division~~ (~~collectively, the~~ “~~Civil Division~~ILAG”) tosent ~~pay~~a ~~$2.6~~letter ~~billion~~ to ~~resolve~~the ~~certain~~Company ~~claims~~alleging that the ~~Civil~~Company knowingly ~~Division~~made ~~indicated~~misrepresentations itrelated ~~intended~~ to ~~bring~~RMBS ~~against MS&Co.~~purchased ~~While~~by ~~MS&Co.~~certain ~~and~~pension ~~the~~funds ~~Civil~~affiliated ~~Division~~with ~~have~~the ~~reached~~State anof ~~agreement~~Illinois inand ~~principle~~demanding tothat ~~resolve~~the ~~this~~Company ~~matter,~~pay ~~there~~ILAG ~~can~~approximately be$88 nomillion. ~~assurance~~The ~~that~~Company ~~MS&Co.~~ and ~~the~~ILAG ~~Civil~~reached ~~Division~~an ~~will~~agreement ~~agree~~to onresolve the matter ~~final~~on ~~documentation~~February 10, ~~of the settlement~~2016.

In May 2014, the California Attorney General’s Office (“CAAG”), which is one of the members of the RMBS Working Group, indicated that it has made certain preliminary conclusions that MS&Co. made knowing and material misrepresentations regarding RMBS and that it knowingly caused material misrepresentations to be made regarding the Cheyne SIV, which issued securities marketed to the California Public Employees Retirement System. The CAAG has further indicated that it believes MS&Co.’s conduct violated California law and that it may seek treble damages, penalties and injunctive relief. MS&Co. does not agree with these conclusions and has presented defenses to them to the CAAG.

On September 16, 2014, the Virginia Attorney General’s Office filed a civil lawsuit, styled Commonwealth of Virginia ex rel. Integra REC LLC v. Barclays Capital Inc., et al., against MS&Co. and several other defendants in the Circuit Court of the City of Richmond related to RMBS. The lawsuit alleges that MS&Co. and the other defendants knowingly made misrepresentations and omissions related to the loans backing RMBS purchased by the Virginia Retirement System (“VRS”). The complaint alleges VRS suffered total losses of approximately $384 million on these securities, but does not specify the amount of alleged losses attributable to RMBS sponsored or underwritten by MS&Co. The complaint asserts claims under the Virginia Fraud Against Taxpayers Act, as well as common law claims of actual and constructive fraud, and seeks, among other things, treble damages and civil penalties. On January 20, 2015, the defendants filed a demurrer to the complaint and a plea in bar seeking dismissal of the complaint.

In October 2014, the Illinois Attorney General’s Office (“IL AG”) sent a letter to MS&Co. alleging that MS&Co. knowingly made misrepresentations related to RMBS purchased by certain pension funds affiliated with the State of Illinois and demanding that MS&Co. pay the IL AG approximately $88 million. MS&Co. does not agree with these allegations and has presented defenses to them to the IL AG.

On January 13, 2015, the New York Attorney General’s Office (“NYAG”), which is also a member of the RMBS Working Group, indicated that it intends to file a lawsuit related to approximately 30 subprime securitizations sponsored by MS&Co. The NYAG indicated that the lawsuit would allege that MS&Co. misrepresented or omitted material information related to the due diligence, underwriting and valuation of the loans in the securitizations and the properties securing them and indicated that its lawsuit would be brought under the Martin Act. MS&Co. does not agree with the NYAG’s allegations and has presented defenses to them to the NYAG.

On September 2, 2011, the Federal Housing Finance Agency, as conservator for Fannie Mae and Freddie Mac, filed 17 complaints against numerous financial services companies, including MS&Co. and certain affiliates. A complaint against MS&Co. and certain affiliates and other defendants was filed in the Supreme Court of the State of New York, New York County (“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 raised claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On February 7, 2014, the parties entered into an agreement to settle the litigation. On February 20, 2014, the court dismissed the action.

On June 5, 2012, MS&Co. consented to and became the subject of an Order Instituting Proceedings Pursuant to Sections 6(c) and 6(d) of the Commodity Exchange Act, as amended, Making Findings and Imposing Remedial Sanctions by the CFTC to resolve allegations related to the failure of a salesperson to comply with exchange rules that prohibit off-exchange futures transactions unless there is an exchange for related position (“EFRP”). Specifically, the CFTC found that from April 2008 through October 2009, MS&Co. violated Section 4c(a) of the Commodity Exchange Act, as amended, and CFTC Regulation 1.38 by executing, processing and reporting numerous off-exchange futures trades to the Chicago Mercantile Exchange (“CME”) and Chicago Board of Trade (“CBOT”) as EFRPs in violation of CME and CBOT rules because those trades lacked the corresponding and related cash, OTC swap, OTC option, or other OTC derivative position. In addition, the CFTC found that MS&Co. violated CFTC Regulation 166.3 by failing to supervise the handling of the trades at issue and failing to have adequate policies and procedures designed to detect and deter the violations of the Commodity Exchange Act, as amended, and CFTC Regulations. Without admitting or denying the underlying allegations and without adjudication of any issue of law or fact, MS&Co. accepted and consented to entry of findings and the imposition of a cease and desist order, a fine of $5,000,000, and undertakings related to public statements, cooperation and payment of the fine. MS&Co. entered into corresponding and related settlements with the CME and CBOT in which the CME found that MS&Co. violated CME Rules 432.Q and 538 and fined MS&Co. $750,000 and CBOT found that MS&Co. violated CBOT Rules 432.Q and 538 and fined MS&Co. $1,000,000.

On July 23, 2014, the SEC approved a settlement by MS&Co. and certain affiliates to resolve an investigation related to certain subprime RMBS transactions sponsored and underwritten by those entities in 2007. Pursuant to the settlement, MS&Co. and certain affiliates were charged with violating Sections 17(a)(2) and 17(a)(3) of the Securities Act, agreed to pay disgorgement and penalties in an amount of $275 million and neither admitted nor denied the SEC’s findings.

Other Litigation.

On December 23, 2009, the Federal Home Loan Bank of Seattle filed a complaint against MS&Co. and another defendant in the Superior Court of the State of Washington, styled Federal Home Loan Bank of Seattle v. Morgan Stanley & Co. Inc., et al. The amended complaint, filed on September 28, 2010, alleges that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sold to plaintiff by MS&Co. was approximately $233 million. The complaint raises claims under the Washington State Securities Act and seeks, among other things, to rescind the plaintiff’s purchase of such certificates. On October 18, 2010, defendants filed a motion to dismiss the action. By orders dated June 23, 2011 and July 18, 2011, the court denied defendants’ omnibus motion to dismiss plaintiff’s amended complaint and on August 15, 2011, the court denied MS&Co.’s individual motion to dismiss the amended complaint. On March 7, 2013, the court granted defendants’ motion to strike plaintiff’s demand for a jury trial. At December 25, 2014, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $53 million, and the certificates had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $53 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., plus pre- and post-judgment interest, fees and costs. MS&Co. 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 March 15, 2010, the Federal Home Loan Bank of San Francisco filed two complaints against MS&Co. 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 MS&Co. 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 August 11, 2011, plaintiff’s federal securities law claims were dismissed with prejudice. The defendants filed answers to the amended complaints on October 7, 2011. On February 9, 2012, defendants’ demurrers with respect to all other claims were overruled. On December 20, 2013, plaintiff’s negligent misrepresentation claims were dismissed with prejudice. A bellwether trial was scheduled to begin in January 2015. MS&Co. was not a defendant in connection with the securitizations at issue in that trial. On May 23, 2014, plaintiff and the defendants in the bellwether trial filed motions for summary adjudication. On October 15, 2014, these motions were denied. On December 29, 2014 and January 13, 2015, the defendants in the bellwether trial informed the court that they had reached a settlement in principle with plaintiff. At December 25, 2014, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $283 million, and the certificates had incurred actual losses of approximately $7 million. Based on currently available information, MS&Co. believes it could incur a loss for this

action up to the difference between the $283 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. 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 MS&Co., styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al., which is pending in the 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 MS&Co. misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that MS&Co. 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 denied MS&Co.’s motion to dismiss the complaint. Based on currently available information, MS&Co. 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 MS&Co. and other defendants in the Circuit Court of the State of Illinois, styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. A corrected amended complaint was filed on April 8, 2011. The corrected amended 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 and asserts claims under Illinois law. The total amount of certificates allegedly sold to plaintiff by MS&Co. at issue in the action was approximately $203 million. The complaint seeks, among other things, to rescind the plaintiff’s purchase of such certificates. The defendants filed a motion to dismiss the corrected amended complaint on May 27, 2011, which was denied on September 19, 2012. On December 13, 2013, the court entered an order dismissing all claims related to one of the securitizations at issue. After that dismissal, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $78 million. At December 25, 2014, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $54 million, and the certificates had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $54 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., plus pre- and post-judgment interest, fees and costs. MS&Co. 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 MS&Co. 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 allegedly sold to plaintiffs by MS&Co. 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 Morgan Stanley defendants filed a motion to dismiss the amended complaint, which was denied on August 3, 2012. MS&Co. filed its answer on August 17, 2012. MS&Co. filed a motion for summary judgment on January 20, 2015. Trial is currently scheduled to begin in July 2015. At December 25, 2014, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $110 million, and the certificates had incurred actual losses of approximately $2 million. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $110 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to an offset for interest received by the plaintiff prior to a judgment.

On November 4, 2011, the Federal Deposit Insurance Corporation (“FDIC”), as receiver for Franklin Bank S.S.B., filed two complaints against MS&Co. in the District Court of the State of Texas. Each was styled Federal Deposit Insurance Corporation as Receiver for Franklin Bank, S.S.B. v. Morgan Stanley & Company LLC F/K/A Morgan Stanley & Co. Inc. and alleged that MS&Co. made untrue statements and material omissions in connection with the sale to plaintiff of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly underwritten and sold to plaintiff by MS&Co. in these cases was approximately $67 million and $35 million, respectively. The complaints each raised claims under both federal securities law and the Texas Securities Act and each seeks, among other things, compensatory damages associated with plaintiff’s purchase of such certificates. On June 7, 2012, the two cases were consolidated. MS&Co. filed a motion for summary judgment and special exceptions, which was denied in substantial part on April 26, 2013. The FDIC filed a second amended consolidated complaint on May 3, 2013. MS&Co. filed a motion for leave to file an interlocutory appeal as to the court’s order denying its motion for summary judgment and special exceptions, which was denied on August 1, 2013. On October 7, 2014, the court denied MS&Co.’s motion for reconsideration of the court’s order denying its motion for summary judgment and special exceptions and granted its motion for reconsideration of the court’s order denying leave to file an interlocutory appeal. On November 21, 2014, MS&Co. filed a motion for summary judgment, which was denied on February 10, 2015. The Texas Fourteenth Court of Appeals denied Morgan Stanley’s petition for interlocutory appeal on November 25, 2014. Trial is currently scheduled to begin in July 2015.

On April 25, 2012, The Prudential Insurance Company of America and certain affiliates filed a complaint against MS&Co. 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. On October 16, 2012, plaintiffs filed an amended complaint. The amended 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~~On ~~mortgage~~January 13, ~~loans. The total amount of certificates allegedly sponsored~~2015, ~~underwritten and/or sold by MS&Co. is approximately $1.073 billion. The amended complaint raises claims under~~ the New ~~Jersey~~York ~~Uniform~~Attorney ~~Securities~~General’s ~~Law,~~Office ~~as well as common law claims of negligent misrepresentation~~(“NYAG”), ~~fraud,~~which is ~~fraudulent~~also ~~inducement,~~a ~~equitable~~member ~~fraud, aiding and abetting fraud, and violations~~ of the ~~New~~RMBS ~~Jersey~~Working ~~RICO statute~~Group, ~~and~~indicated ~~includes~~that ait ~~claim~~intends ~~for treble~~to ~~damages.~~file Ona ~~March 15,~~lawsuit ~~2013,~~related ~~the~~to ~~court~~approximately ~~denied~~30 ~~the~~subprime ~~defendants’~~securitizations ~~motion~~sponsored toby ~~dismiss~~ the ~~amended complaint~~Company. OnNYAG ~~January 2,~~indicated ~~2015,~~that the ~~court~~lawsuit ~~denied~~would ~~defendants’~~allege ~~renewed~~that ~~motion to dismiss~~ the ~~amended~~Company ~~complaint.~~misrepresented ~~At December 25,~~or ~~2014,~~omitted ~~the~~material ~~current~~information ~~unpaid~~related ~~balance~~to of the ~~mortgage~~due ~~pass-through~~diligence, ~~certificates~~underwriting atand ~~issue~~valuation inof ~~this action was approximately $605 million, and~~ the ~~certificates~~loans ~~had not yet incurred actual losses. Based on currently available information, MS&Co. believes it could incur a loss~~ in ~~this action up to~~ the ~~difference~~securitizations ~~between~~and the ~~$605~~properties ~~million~~securing ~~unpaid~~them ~~balance~~and ofindicated ~~these~~that ~~certificates~~its ~~(plus~~lawsuit ~~any~~would ~~losses~~be ~~incurred)~~brought ~~and~~under ~~their fair market value at~~ the ~~time~~Martin ~~of a judgment against MS&Co~~Act., ~~plus~~The ~~pre-~~Company and ~~post-judgment~~NYAG ~~interest,~~reached ~~fees~~an ~~and~~agreement ~~costs. MS&Co. may be entitled~~ to beresolve ~~indemnified for some of these losses and to an offset for interest received by~~ the ~~plaintiff~~matter ~~prior~~on toFebruary 10, ~~a judgment~~2016.

On ~~April 20~~June 5, ~~2011~~2012, the ~~Federal~~Company ~~Home~~consented ~~Loan~~to ~~Bank of Boston filed a complaint against MS&Co.~~ and ~~other~~became ~~defendants in~~ the ~~Superior~~subject ~~Court~~ of an ~~the~~Order ~~Commonwealth~~Instituting ofProceedings ~~Massachusetts~~Pursuant ~~styled~~to ~~Federal~~Sections 6(c) ~~Home~~and ~~Loan~~6(d) ~~Bank~~ of ~~Boston~~the v.Commodity ~~Ally~~Exchange ~~Financial~~Act, ~~Inc.~~as ~~F/K/A GMAC LLC et al. An~~ amended, ~~complaint~~Making ~~was~~Findings ~~filed~~and onImposing ~~June 29,~~Remedial ~~2012~~Sanctions ~~and~~by ~~alleges~~the ~~that~~Commodity ~~defendants~~Futures ~~made~~Trading ~~untrue~~Commission ~~statements~~(“CFTC”) ~~and~~to ~~material~~resolve allegations ~~omissions~~related ~~in the sale~~ to the ~~plaintiff~~failure of ~~certain~~a ~~mortgage~~salesperson ~~pass-through~~to ~~certificates~~comply ~~backed~~with byexchange ~~securitization~~rules ~~trusts~~that ~~containing~~prohibit ~~residential~~off-exchange ~~mortgage~~futures ~~loans.~~transactions ~~The~~unless ~~total~~there ~~amount~~is ofan ~~certificates~~Exchange ~~allegedly~~for ~~issued~~Related byPosition ~~MS&Co~~(“EFRP”). orSpecifically, ~~sold~~the toCFTC ~~plaintiff~~found ~~by MS&Co.~~that ~~was~~from ~~approximately~~April 2008 ~~$385~~through October 2009, ~~million.~~the ~~The~~Company ~~amended~~violated ~~complaint~~Section ~~raises~~4c(a) ~~claims~~of ~~under~~ the ~~Massachusetts~~Commodity ~~Uniform~~Exchange ~~Securities~~ Act, (the ~~Massachusetts~~“CEA”) ~~Consumer Protection Act~~ and ~~common~~CFTC ~~law~~Regulation ~~and~~1.38 ~~seeks,~~by ~~among other things~~executing, toprocessing ~~rescind~~and ~~the~~reporting ~~plaintiff’s purchase~~numerous ofoff-exchange ~~such~~futures ~~certificates.~~trades ~~On May 26, 2011, defendants removed the case~~ to the ~~United~~Chicago ~~States~~Mercantile ~~District~~Exchange (“CME”) ~~Court~~and ~~for~~Chicago ~~the~~Board ~~District~~ of ~~Massachusetts.~~Trade On(“CBOT”) ~~October 11,~~as ~~2012,~~EFRPs ~~defendants~~in ~~filed~~violation ~~motions~~of toCME ~~dismiss~~and ~~the~~CBOT ~~amended~~rules ~~complaint,~~because ~~which~~those ~~were granted~~trades inlacked ~~part~~the corresponding and ~~denied~~related incash, ~~part~~OTC ~~on September 30~~swap, ~~2013.~~OTC ~~The~~option, ~~defendants~~or ~~filed~~other anOTC ~~answer~~derivative toposition. ~~the~~In ~~amended complaint on December 16~~addition, ~~2013.~~the ~~Plaintiff~~CFTC found ~~has~~that ~~voluntarily~~the ~~dismissed~~Company ~~its~~violated ~~claims~~CFTC ~~against~~Regulation ~~MS&Co~~166.3 ~~with~~by ~~respect~~failing to ~~two~~supervise the handling of the ~~securitizations~~ trades at issue, ~~such~~and ~~that~~failing ~~the~~to ~~remaining~~have ~~amount~~adequate ofpolicies ~~certificates~~and ~~allegedly~~procedures ~~issued~~designed byto ~~MS&Co.~~detect orand ~~sold~~deter tothe ~~plaintiff~~violations byof ~~MS&Co.~~the isCEA ~~approximately~~and ~~$358~~CFTC ~~million~~Regulations. Without Atadmitting ~~December 25,~~or ~~2014,~~denying the ~~current~~underlying ~~unpaid~~allegations ~~balance~~and ofwithout ~~the~~adjudication ~~mortgage pass-through~~of ~~certificates~~any at issue inof ~~this~~law ~~action~~or ~~was approximately $65 million~~fact, ~~and~~ the ~~certificates~~Company ~~had~~accepted ~~not~~and ~~yet~~consented ~~incurred~~to ~~actual~~entry ~~losses.~~of ~~Based~~findings onand ~~currently~~the ~~available~~imposition ~~information,~~of ~~MS&Co.~~a ~~believes~~cease itand ~~could~~desist ~~incur~~order, a ~~loss~~fine inof ~~this~~$5,000,000, ~~action~~and undertakings uprelated to ~~the difference~~public ~~between~~statements, ~~the~~cooperation ~~$65~~and ~~million~~payment ~~unpaid balance~~ of ~~these~~the ~~certificates~~fine. ~~(plus~~The ~~any~~Company ~~losses~~entered ~~incurred)~~into corresponding and ~~their~~related ~~fair~~settlements ~~market~~with ~~value~~the atCME ~~the~~and ~~time~~CBOT ofin awhich ~~judgment~~the ~~against~~CME ~~MS&Co.,~~found orthat ~~upon~~the ~~sale,~~Company ~~plus~~violated ~~pre-~~CME ~~and~~Rules ~~post-judgment~~432.Q ~~interest,~~and ~~fees~~538 and ~~costs.~~fined ~~MS&Co.~~the ~~may~~Company be$750,000 ~~entitled~~and toCBOT befound ~~indemnified~~that ~~for~~the ~~some~~Company ofviolated ~~these~~CBOT ~~losses~~Rules 432.Q and to538 anand ~~offset~~fined ~~for interest received by~~ the ~~plaintiff~~Company ~~prior to a judgment~~$1,000,000.

On ~~February~~July 1423, ~~2013~~ 2014, ~~Bank~~the ~~Hapoalim~~SEC ~~B.M.~~approved ~~filed~~ a ~~complaint~~settlement ~~against~~by MS&Co. and certain affiliates into ~~the~~resolve ~~Supreme~~an ~~Court~~investigation ofrelated ~~NY,~~to ~~styled Bank~~certain ~~Hapoalim~~subprime ~~B.M.~~RMBS v.transactions ~~Morgan~~sponsored ~~Stanley~~and etunderwritten ~~al. The~~by ~~complaint~~those ~~alleges~~entities ~~that defendants made material misrepresentations and omissions~~ in ~~the~~2007. Pursuant ~~sale~~ to ~~plaintiff~~the ofsettlement, MS&Co. and certain ~~mortgage~~affiliates ~~pass-through~~were ~~certificates~~charged ~~backed~~with byviolating ~~securitization~~Sections ~~trusts containing~~17(a)(2) ~~residential~~and ~~mortgage~~17(a)(3) ~~loans. The~~of ~~total~~the ~~amount~~Securities Act of ~~certificates~~1933 ~~allegedly~~(the ~~sponsored~~“Securities Act”), ~~underwritten~~agreed ~~and/or~~to ~~sold~~pay bydisgorgement ~~MS&Co.~~and topenalties ~~plaintiff~~in ~~was~~an ~~approximately~~amount of $~~141~~275 million~~. The~~ ~~complaint~~and ~~alleges~~neither ~~causes~~admitted ofnor ~~action~~denied ~~against~~the SEC’s ~~MS&Co~~findings. ~~for common law fraud, fraudulent concealment, aiding~~

On April 21, 2015, the Chicago Board Options Exchange, Incorporated (“CBOE”) and the CBOE Futures Exchange, LLC (“CFE”) filed statements of charges against the Company in connection with trading by one of the Company’s former traders of EEM options contracts that allegedly disrupted the final settlement price of the November 2012 VXEM futures. CBOE alleged that the Company violated CBOE Rules 4.1, 4.2 and 4.7, Sections 9(a) and 10(b) of the Exchange Act, and Rule 10b-5 thereunder. CFE alleged that the Company violated CFE Rules 608, 609 and 620. Both matters are ongoing.

On June 18, 2015, the Company entered into a settlement with the SEC and paid a fine of $500,000 as part of the MCDC Initiative to resolve allegations that the Company failed to form a reasonable basis through adequate due diligence for believing the truthfulness of the assertions by issuers and/or obligors regarding their compliance with previous continuing disclosure undertakings pursuant to Rule 15c2-12 in connection with offerings in which the Company acted as senior or sole underwriter.

On August 6, 2015, the Company consented to and became the subject of an order by the CFTC to resolve allegations that the Company violated CFTC Regulation 22.9(a) by failing to hold sufficient U.S. Dollars in cleared swap segregated accounts in the U.S. to meet all U.S. Dollar obligations to cleared swaps customers. Specifically, the CFTC found that while the Company at all times held sufficient funds in segregation to cover its obligations to its customers, on certain days during 2013 and 2014, it held currencies, such as euros, instead of U.S. dollars, to meet its U.S. dollar obligations. In addition, the CFTC found that the Company violated CFTC Regulation 166.3 by failing to have in place adequate procedures to ensure that it complied with CFTC Regulation 22.9(a). Without admitting or denying the findings or conclusions and without adjudication of any issue of law or fact, the Company accepted and consented to the entry of findings, the imposition of a cease and desist order, a civil monetary penalty of $300,000, and undertakings related to public statements, cooperation, and payment of the monetary penalty.

Civil Litigation

On December 23, 2009, the Federal Home Loan Bank of Seattle filed a complaint against the Company and another defendant in the Superior Court of the State of Washington, styled Federal Home Loan Bank of Seattle v. Morgan Stanley & Co. Inc., et al. The amended complaint, filed on September 28, 2010, alleges that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sold to plaintiff by the Company was approximately $233 million. The complaint raises claims under the Washington State Securities Act and seeks, among other things, to rescind the plaintiff’s purchase of such certificates. By orders dated June 23, 2011 and July 18, 2011, the court denied defendants’ omnibus motion to dismiss plaintiff’s amended complaint and on August 15, 2011, the court denied the Company’s individual motion to dismiss the amended complaint. On March 7, 2013, the court granted defendants’ motion to strike plaintiff’s demand for a jury trial. The defendants’ joint motions for partial summary judgment were denied on November 9, 2015. At December 25, 2015, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $46 million, and the certificates had not yet incurred actual losses. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $46 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.

~~and~~On ~~abetting~~March 15, ~~fraud~~2010, ~~and~~the ~~negligent~~Federal ~~misrepresentation,~~Home ~~and~~Loan ~~seeks,~~Bank ~~among~~of ~~other~~San ~~things,~~Francisco ~~compensatory~~filed a complaint against the Company and ~~punitive~~other ~~damages~~defendants in the Superior Court of the State of California styled Federal Home Loan Bank of San Francisco v. OnDeutsche ~~April~~Bank Securities Inc. 22et al. An amended complaint, ~~2014~~filed on June 10, ~~the~~2010, alleges that defendants’ ~~motion~~made tountrue ~~dismiss~~statements ~~was~~and ~~denied~~material omissions in ~~substantial~~ ~~part.~~connection Onwith ~~August~~the sale to plaintiff of ~~29,~~certain ~~2014,~~mortgage ~~MS&Co~~pass-through certificates backed by securitization trusts containing residential mortgage loans. ~~filed~~The ~~its~~amount ~~answer~~of certificates allegedly sold to plaintiff by the Company was approximately $276 million. The complaint, raises claims under both the federal securities laws and onCalifornia ~~September 18~~law and seeks, ~~2014~~among other things, to ~~MS&Co~~rescind the plaintiff’s purchase of such certificates. On ~~filed~~August 11, a2011, ~~notice~~plaintiff’s offederal ~~appeal~~securities ~~from~~law ~~the~~claims ~~ruling~~were ~~denying~~dismissed with prejudice. On February 9, 2012, defendants’ ~~motion~~demurrers with respect to ~~dismiss~~all other claims were overruled. On December 20, 2013, plaintiff’s negligent misrepresentation claims were dismissed with prejudice. At December 25, ~~2014~~2015, the current unpaid balance of the mortgage pass-through certificates at issue in ~~this~~these ~~action~~cases was approximately $7259 million, and the certificates had ~~not yet~~ incurred actual losses of approximately $1 million. Based on currently available information, ~~MS&Co.~~the Company believes it could incur a loss infor this action up to the difference between the $7259 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against ~~MS&Co.~~the Company, or upon sale, 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 ~~May~~July 315, ~~2013~~2010, ~~plaintiffs~~China inDevelopment ~~Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan~~Industrial ~~Stanley~~Bank et(“CDIB”) ~~al.~~ filed a complaint against ~~MS&Co.,~~the ~~certain affiliates~~Company, ~~and~~styled ~~other~~China ~~defendants~~Development inIndustrial ~~the~~Bank ~~Supreme~~v. ~~Court~~Morgan ofStanley & NYCo. ~~The~~Incorporated ~~complaint~~et ~~alleges~~al., ~~that~~which ~~defendants~~is ~~made~~pending ~~material misrepresentations and omissions~~ in the ~~sale~~Supreme toCourt ~~plaintiffs~~ of ~~certain mortgage~~the ~~pass-through~~State ~~certificates~~of ~~backed~~New byYork, ~~securitization~~New ~~trusts~~York ~~containing~~County (“Supreme ~~residential~~Court ~~mortgage~~of ~~loans~~NY”). The ~~total~~complaint ~~amount~~relates ofto ~~certificates~~a ~~allegedly~~$275 million ~~sponsored,~~credit ~~underwritten~~default ~~and/or~~swap ~~sold~~referencing bythe ~~MS&Co.~~super tosenior ~~plaintiff~~portion ~~was~~of ~~approximately~~the ~~$694~~STACK ~~million~~2006-1 CDO. The complaint ~~alleges~~asserts ~~causes~~claims ~~of action against MS&Co.~~ for common law fraud, fraudulent ~~concealment,~~inducement ~~aiding~~ and ~~abetting~~fraudulent concealment ~~fraud,~~and ~~negligent~~alleges ~~misrepresentation,~~that ~~and~~the ~~rescission~~Company ~~and~~misrepresented ~~seeks,~~the ~~among~~risks ~~other~~of ~~things,~~the ~~compensatory~~STACK ~~and~~2006-1 ~~punitive~~CDO ~~damages.~~to ~~On June 10~~CDIB, ~~2014,~~and that the ~~court~~Company ~~denied~~knew that the ~~defendants’~~assets ~~motion~~backing tothe ~~dismiss~~CDO ~~the~~were ~~case.~~of Onpoor ~~July 10,~~quality ~~2014,~~when ~~MS&Co.~~it ~~filed~~entered ainto ~~renewed~~the ~~motion~~credit todefault ~~dismiss~~swap with ~~respect~~CDIB. toThe ~~two~~complaint seeks ~~certificates~~compensatory atdamages ~~issue~~related into the ~~case.~~approximately On$228 ~~August 4,~~million ~~2014,~~that ~~claims~~CDIB ~~regarding two~~alleges ~~certificates~~it ~~were~~has ~~dismissed~~already bylost ~~stipulation.~~under ~~After~~the ~~these~~credit ~~dismissals~~default swap, ~~the~~rescission ~~remaining amount~~ of ~~certificates~~CDIB’s ~~allegedly~~obligation ~~issued by MS&Co. or sold~~ to ~~plaintiff~~pay byan ~~MS&Co.~~additional ~~was approximately~~ $~~644~~ 12 million., Onpunitive ~~October 13~~damages, ~~2014,~~equitable ~~MS&Co. filed~~relief, ~~its~~fees ~~answer~~and ~~to the complaint~~costs. On ~~At December~~February 2528, ~~2014~~2011, the ~~current~~court ~~unpaid~~denied ~~balance of~~ the ~~mortgage~~Company’s ~~pass-through~~motion ~~certificates~~to atdismiss ~~issue in this action was approximately $294 million, and~~ the ~~certificates had incurred actual losses of approximately $79 million~~complaint. Based on currently available information, ~~MS&Co.~~the Company believes it could incur a loss inof ~~this action~~ up to ~~the~~approximately ~~difference between the~~ $~~294~~240 million ~~unpaid balance of these certificates (~~plus ~~any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus~~ pre- and post-judgment interest, fees and costs. ~~MS&Co. may be entitled to be indemnified for some of these losses.~~

On ~~September~~October 2315, ~~2013~~2010, the ~~plaintiff~~Federal inHome ~~National~~Loan ~~Credit~~Bank ~~Union~~of ~~Administration~~Chicago ~~Board~~filed v.a complaint against ~~Morgan~~the ~~Stanley~~Company and other defendants in &the Circuit ~~Co.~~Court ~~Inc.,~~of etthe ~~al. filed~~State aof ~~complaint~~Illinois, ~~against~~styled ~~MS&Co.~~Federal ~~and~~Home ~~certain~~Loan ~~affiliates~~Bank inof Chicago v. Bank ~~the~~of ~~United~~America ~~States~~Funding ~~District~~Corporation et ~~Court~~al. ~~for~~A ~~the~~corrected ~~Southern~~amended ~~District~~complaint was offiled ~~New~~on ~~York~~April 8, 2011. The corrected amended complaint alleges that defendants made untrue statements ofand material ~~fact~~omissions ~~or omitted to state material facts~~ in the sale to ~~the~~ plaintiff of a ~~certain~~number of mortgage pass-through certificates ~~issued~~backed by securitization trusts containing residential mortgage loans. ~~The~~and asserts claims under Illinois law. The total amount of certificates allegedly ~~sponsored,~~sold ~~underwritten~~to ~~and/or~~plaintiff ~~sold~~ by ~~MS&Co.~~the to Company at issue in the ~~plaintiff~~action was approximately $~~417~~203 million. The complaint seeks, ~~alleges~~among ~~causes~~other ofthings, to ~~action~~rescind the ~~against~~plaintiff’s ~~MS&Co~~purchase of such certificates. ~~for~~The ~~violations~~defendants offiled ~~Section~~a motion to dismiss the corrected amended complaint on May 1127, ~~and~~2011, ~~Section~~which was denied on September ~~12(a)(2)~~19, of2012. On December 13, 2013, the ~~Securities~~court ~~Act,~~entered ~~violations~~an order dismissing all claims related to one of the ~~Texas~~securitizations ~~Securities~~at ~~Act~~issue. After that dismissal, ~~and~~the ~~violations~~remaining amount of certificates allegedly issued by the Company or sold to plaintiff by the Company ~~Illinois~~was ~~Securities~~approximately ~~Law~~$78 ofmillion. ~~1953~~At ~~and~~December 25, ~~seeks~~2015, ~~among~~the ~~other~~current ~~things,~~unpaid ~~rescissory~~balance of the mortgage pass-through certificates at issue in this action was approximately $51 million, and ~~compensatory~~the ~~damages~~certificates had not yet incurred actual losses. ~~The~~Based ~~defendants~~on currently ~~filed~~available information, the Company believes it could incur a ~~motion~~loss in this action up to ~~dismiss~~the difference between the ~~complaint~~$51 onmillion ~~November 13,~~unpaid ~~2013.~~balance Onof ~~January 22,~~these ~~2014~~certificates ~~the~~(plus ~~court~~any ~~granted~~losses ~~defendants’~~incurred) ~~motion to~~and ~~dismiss~~their ~~with~~fair ~~respect~~market tovalue ~~claims~~at ~~arising~~the ~~under~~time of a judgment against the ~~Securities~~Company, ~~Act~~plus pre- and ~~denied~~post-judgment ~~defendants’~~interest, ~~motion~~fees and costs. The Company may be entitled to ~~dismiss~~be ~~with~~indemnified ~~respect~~for some of these losses and to ~~claims~~an ~~arising~~offset for interest received by the plaintiff prior to a judgment.

On April 20, 2011, the Federal Home Loan Bank of Boston filed a complaint against the Company and other defendants in the Superior Court of the Commonwealth of Massachusetts styled Federal Home Loan Bank of Boston v. Ally Financial, Inc. F/K/A GMAC LLC et al. An amended complaint was filed on June 29, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiff of certain 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 by the Company was approximately $385 million. The amended complaint raises claims under the Massachusetts Uniform Securities Act, the Massachusetts Consumer Protection Act and common law and seeks, among other things, to rescind the plaintiff’s purchase of such certificates. On May 26, 2011, defendants removed the case to the United States District Court for the District of Massachusetts. The defendants’ motions to dismiss the amended complaint were granted in part and denied in part on September 30, 2013. On November 25, 2013, July 16, 2014, and May 19, 2015, respectively, the plaintiff voluntarily dismissed its claims against the Company with respect to three of the securitizations at issue. After these voluntary dismissals, the remaining amount of certificates allegedly issued by the Company or sold to plaintiff by the Company was approximately $332 million. At December 25, 2015, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $55 million, and the certificates had not yet incurred actual losses. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $55 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, or upon sale, 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 May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan ~~under~~Stanley ~~Texas~~et ~~Securities~~al. ~~Act~~filed a complaint against the Company, certain affiliates, and other defendants in the ~~Illinois~~Supreme ~~Securities~~Court ~~Law~~of NY. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of ~~1953~~certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. OnThe ~~November 17,~~total ~~2014~~amount of certificates allegedly sponsored, underwritten and/or sold by the Company to plaintiff ~~filed~~currently anat ~~amended~~issue in this action was approximately $644 million. The complaint alleges causes of action against the Company for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and seeks, among other things, compensatory and punitive damages. On ~~December~~June 1510, 2014, ~~defendants~~the ~~answered~~court granted in part and denied in part the ~~amended~~ Company’s motion to dismiss the complaint. AtThe Company perfected its appeal from that decision on June 12, 2015. At December 25, ~~2014~~2015, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $~~208~~269 million, and the certificates had incurred actual losses of approximately $2783 million. Based on currently available information, ~~MS&Co.~~the Company believes it could incur a loss in this action up to the difference between the $~~208~~269 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against ~~MS&Co.~~the Company, or upon sale, plus pre- and post-judgment interest, fees and costs. ~~MS&Co.~~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~~.

~~Additional~~On ~~lawsuits~~May 17, ~~containing~~2013, ~~claims~~plaintiff ~~similar~~in toIKB ~~those~~International ~~described~~S.A. ~~above~~in ~~may~~Liquidation, beet al. v. Morgan Stanley, et al. filed a complaint against the Company and certain affiliates in the ~~future~~Supreme Court of NY. InThe complaint alleges that defendants made material misrepresentations and omissions in the ~~course~~sale to plaintiff of ~~its~~certain ~~business,~~mortgage ~~MS&Co~~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 to plaintiff was approximately $132 million. The complaint alleges causes of action against the Company for ascommon alaw ~~major~~fraud, ~~futures~~fraudulent ~~commission~~concealment, ~~merchant~~aiding and abetting fraud, isand ~~party~~negligent tomisrepresentation, ~~various~~and ~~civil~~seeks, ~~actions~~among other things, ~~claims~~compensatory and ~~routine~~punitive ~~regulatory~~damages. ~~investigations~~On October 29, 2014, the court granted in part and ~~proceedings~~denied ~~that~~in part the Company’s ~~General~~motion ~~Partner~~to ~~believes~~dismiss. doAll ~~not~~claims ~~have~~regarding afour ~~material~~certificates ~~effect~~were ondismissed. After these dismissals, the ~~business~~remaining amount of ~~MS&Co~~certificates allegedly issued by the Company or sold to plaintiff by the Company was approximately $116 million. On ~~MS&Co~~August 26, 2015, the Company perfected its appeal from the court’s October 29, 2014 decision. ~~may~~At December 25, 2015, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately ~~establish~~$28 ~~reserves~~million, ~~from~~and ~~time~~the certificates had incurred actual losses of $58 million. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $28 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time inof ~~connections~~a ~~with~~judgment ~~such~~against ~~actions~~the Company, or upon sale, 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.

Settled Civil Litigation

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.

On March 15, 2010, the Federal Home Loan Bank of San Francisco filed a complaint against the Company and other defendants in the Superior Court of the State of California styled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al. An amended complaint filed on June 10, 2010 alleged 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 was approximately $704 million. The complaint raised claims under both the federal securities laws and California law and sought, among other things, to rescind the plaintiff’s purchase of such certificates. On January 26, 2015, as a result of a settlement with certain other defendants, the plaintiff requested and the court subsequently entered a dismissal with prejudice of certain of the plaintiff’s claims, including all remaining claims against the Company.

On July 9, 2010 and February 11, 2011, Cambridge Place Investment Management Inc. filed two separate complaints against the Company and/or its affiliates 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 asserted 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 and/or its affiliates or sold to plaintiff’s affiliates’ clients by the Company and/or its affiliates in the two matters was approximately $263 million. On February 11, 2014, the parties entered into an agreement to settle the litigation. On February 20, 2014, the court dismissed the action.

On October 25, 2010, the Company, certain affiliates and Pinnacle Performance Limited, a special purpose vehicle (“SPV”), were named as defendants in a purported class action in the United States District Court for the Southern District of New York (“SDNY”), styled Ge Dandong, et al. v. Pinnacle Performance Ltd., et al. On January 31, 2014, the plaintiffs in the action, which related to securities issued by the SPV in Singapore, filed a second amended complaint, which asserted common law claims of fraud, aiding and abetting fraud, fraudulent inducement, aiding and abetting fraudulent inducement, and breach of the implied covenant of good faith and fair dealing. On July 17, 2014, the parties reached an agreement to settle the litigation, which received final court approval on July 2, 2015.

On July 5, 2011, Allstate Insurance Company and certain of its affiliated entities filed a complaint against the Company in the Supreme Court of NY, styled Allstate Insurance Company, et al. v. Morgan Stanley, et al. An amended complaint was filed on September 9, 2011, and alleges that the defendants made untrue statements and material omissions in the sale to the plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued and/or sold to the plaintiffs by the Company was approximately $104 million. The complaint raised common law claims of fraud, fraudulent inducement, aiding and abetting fraud, and negligent misrepresentation and seeks, among other things, compensatory and/or recessionary damages associated with the plaintiffs’ purchases of such certificates. On March 15, 2013, the court denied in substantial part the defendants’ motion to dismiss the amended complaint, which order the Company appealed on April 11, 2013. On May 3, 2013, the Company filed its answer to the amended complaint. On January 16, 2015, the parties reached an agreement to settle the litigation.

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 allegedly sold to plaintiffs by the Company was approximately $153 million. On June 8, 2015, the parties reached an agreement to settle the litigation.

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 and certain affiliates. A complaint against the Company and certain affiliates 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 raised claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On February 7, 2014, the parties entered into an agreement to settle the litigation. On February 20, 2014, the court dismissed the action.

On April 25, 2012, Metropolitan Life Insurance Company and certain affiliates filed a complaint against the Company and certain affiliates in the Supreme Court of NY, styled Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. An amended complaint was filed on June 29, 2012, and alleges that the defendants made untrue statements and material omissions in the sale to the 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 was approximately $758 million. The amended complaint raised common law claims of fraud, fraudulent inducement, and aiding and abetting fraud and seeks, among other things, rescission, compensatory, and/or rescissionary damages, as well as punitive damages, associated with the plaintiffs’ purchases of such certificates. On April 11, 2014, the parties entered into a settlement agreement.

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. On October 16, 2012, plaintiffs filed an amended complaint. The amended complaint alleged 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 was approximately $1.073 billion. The amended complaint raises claims under the New Jersey Uniform Securities Law, as well as common law claims of negligent misrepresentation, fraud, fraudulent inducement, equitable fraud, aiding and abetting fraud, and violations of the New Jersey RICO statute, and includes a claim for treble damages. On January 8, 2016, the parties reached an agreement to settle the litigation.

In re Morgan Stanley Mortgage Pass-Through Certificates Litigation, which had been pending in the SDNY, was a putative class action involving allegations that, among other things, the registration statements and offering documents related to the offerings of certain mortgage pass-through certificates in 2006 and 2007 contained false and misleading information concerning the pools of residential loans that backed these securitizations. On December 18, 2014, the parties’ agreement to settle the litigation received final court approval, and on December 19, 2014, the court entered an order dismissing the action.

On November 4, 2011, the Federal Deposit Insurance Corporation (“FDIC”), as receiver for Franklin Bank S.S.B, filed two complaints against the Company in the District Court of the State of Texas. Each was styled Federal Deposit Insurance Corporation as Receiver for Franklin Bank, S.S.B v. Morgan Stanley & Company LLC F/K/A Morgan Stanley & Co. Inc. and alleged that the Company made untrue statements and material omissions in connection with the sale to plaintiff of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly underwritten and sold to plaintiff by the Company in these cases was approximately $67 million and $35 million, respectively. On July 2, 2015, the parties reached an agreement to settle the litigation.

On February 14, 2013, Bank Hapoalim B.M. filed a complaint against the Company and certain affiliates in the Supreme Court of NY, styled Bank Hapoalim B.M. v. Morgan Stanley et al. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiff 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 to plaintiff was approximately $141 million. On July 28, 2015, the parties reached an agreement to settle the litigation, and on August 12, 2015, the plaintiff filed a stipulation of discontinuance with prejudice.

On September 23, 2013, the plaintiff in National Credit Union Administration Board v. Morgan Stanley & Co. Inc., et al. filed a complaint against the Company and certain affiliates in the SDNY. The complaint alleged that defendants made untrue statements of material fact or omitted to state material facts in the sale to the plaintiff of certain mortgage pass-through certificates issued by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company to plaintiffs in the matter was approximately $417 million. The complaint alleged violations of federal and various state securities laws and sought, among other things, rescissionary and compensatory damages. On November 23, 2015, the parties reached an agreement to settle the matter.

On September 16, 2014, the Virginia Attorney General’s Office filed a civil lawsuit, styled Commonwealth of Virginia ex rel. Integra REC LLC v. Barclays Capital Inc., et al., against the Company and several other defendants in the Circuit Court of the City of Richmond related to RMBS. The lawsuit alleged that the Company and the other defendants knowingly made misrepresentations and omissions related to the loans backing RMBS purchased by the Virginia Retirement System. The complaint asserts claims under the Virginia Fraud Against Taxpayers Act, as well as common law claims of actual and constructive fraud, and seeks, among other things, treble damages and civil penalties. On January 6, 2016, the parties reached an agreement to settle the litigation. An order dismissing the action with prejudice was entered on January 28, 2016.

Additional lawsuits containing claims similar to those described above may be filed in the future. In the course of its business, MS&Co., as a major futures commission merchant, is party to various civil actions, claims and routine regulatory investigations and proceedings that the General Partner believes do not have a material effect on the business of MS&Co. MS&Co. may establish reserves from time to time in connections with such actions.

Item 4. Mine Safety Disclosures. Not Applicable.

1315

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

(a) Market Information. The Partnership has issued no stock. There is no public market for the Redeemable Units.

(b) Holders. The number of holders of Redeemable Units as of February 2829, ~~2015~~2016 was ~~334~~236 for Class A Redeemable Units and 32 for Class Z Redeemable Units.

(c) Dividends. The Partnership did not declare a distribution in ~~2014~~2015 or ~~2013~~2014. The Partnership does not intend to declare distributions in the foreseeable future.

(d) Securities Authorized for Issuance Under Equity Compensation Plans. None.

(e) Performance Graph. Not Applicable.

(f) Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities. For the year ended December 31, ~~2014~~2015, there were subscriptions of ~~2,791~~426.~~0570~~8410 Class A Redeemable Units totaling $3565,~~723,628~~997. For the year ended December 31, ~~2013~~2014, there were subscriptions of 32,~~932~~791.~~0890~~0570 Class A Redeemable Units totaling $53,~~592~~723,~~487~~628. For the year ended December 31, ~~2012,~~ 2013, there were subscriptions of 93,~~407~~932.~~1618~~0890 Class A Redeemable Units totaling $145,~~178~~592,~~378 and 183~~487.~~4279~~ ~~Class Z Redeemable Units totaling $179,256.~~

The Redeemable Units were issued in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Securities Act, and Section 506 of Regulation D promulgated thereunder. The Redeemable Units were purchased by accredited investors, as described in Regulation D. In determining the applicability of the exemption, the General Partner relied on the fact that the Redeemable Units were purchased by accredited investors in a private offering.

Proceeds of net offering were used for the trading of commodity interests including futures contracts, options, swaps and forward contracts.

(g) Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

The following chart sets forth the purchases of Redeemable Units by the Partnership.

Period	Class A (a) Total Number ofRedeemable Units Purchased*	Class A (b) AveragePrice Paid per Redeemable Unit**		~~Class Z~~ (ac) Total Number ofRedeemable Units Purchased* as Part of Publicly AnnouncedPlans orPrograms	~~Class~~(d) ZMaximum Number (borApproximateDollar Value)of ~~Average~~RedeemableUnits ~~Price~~that ~~Paid~~MayYet ~~per~~BePurchasedUnder ~~Redeemable~~thePlans Unit**orPrograms		~~(c) Total NumberRedeemable Units Purchased as Part of Publicly AnnouncedPlans orPrograms~~	~~(d) Maximum Number (orApproximateDollar Value)of RedeemableUnits that MayYet BePurchasedUnder thePlans orPrograms~~
October 1, 2014— October 31, 2014	605.9690	$	1,290.85	N/A		N/A	N/A	N/A
October 1, 2015— October 31, 2015	858.7660	$	1,210.76	N/A	N/A
November 1, 2014— November 30, 2014	210.0230	$	1,311.33	N/A		N/A	N/A	N/A
November 1, 2015— November 30, 2015	191.6510	$	1,211.24	N/A	N/A
December 1, 2014— December 31, 2014	191.1650	$	1,304.97	46.1000	$	889.87	N/A	N/A
December 1, 2015— December 31, 2015	816.3720	$	1,204.03	N/A	N/A
	1,007.1570	$	1,297.80	46.1000	$	889.87
	1,866.7890	$	1,207.87

* Generally, ~~limited~~Limited ~~partners~~Partners are permitted to redeem their Redeemable Units as of the end of each month on three business days’ notice to the General Partner. Under certain circumstances, the General Partner can compel redemption, although to date the General Partner has not exercised this right. Purchases of Redeemable Units by the Partnership reflected in the chart above were made in the ordinary course of the Partnership’s business in connection with effecting redemptions for ~~limited~~Limited ~~partners~~Partners.

** Redemptions of Redeemable Units are effected as of the ~~last~~end ~~day~~ of each month at the net asset value per Redeemable Unit as of that day. No fee will be charged for redemptions.

1416

Item 6. Selected Financial Data.

~~Net~~Total ~~realized~~trading ~~and~~results, ~~unrealized~~total ~~trading~~investment ~~gains (losses)~~income, ~~interest~~total ~~income~~expenses, net income (loss), and increase (decrease) in net asset value per ~~unit~~Redeemable ~~and~~Unit ~~net asset value per unit~~ for the years ended December 31, 2015, 2014, 2013, 2012, and 2011 and ~~2010,~~net asset value per Redeemable Unit and total assets at December 31, 2015, 2014, 2013, 2012, ~~2011~~ and ~~2010~~2011 were as follows:

	2014			2013			2012			2011			2010
	2015			2014			2013			2012			2011
Net realized and unrealized trading gains (losses) on investments net of ongoing selling agent fees of $417,084, $621,911, $680,883, $550,250 and $0, respectively	$	(1,099,630	)	$	508,901		$	(269,095	)	$	406,473		$	(1,085,688	)
Total trading results	$	(211,675	)	$	(682,546	)	$	1,130,812		$	411,788		$	956,723
Interest income	$	4,189		$	11,844		$	26,446		$	5,930		$	149
Total investment income		1,919			4,189			11,844			26,446			5,930
	$	(1,095,441	)	$	520,745		$	(242,649	)	$	412,403		$	(1,085,539	)
Total expenses		(980,353	)		(1,258,751	)		(2,109,177	)		(2,555,665	)		(2,172,808	)
Net income (loss)	$	(1,~~937~~190,~~108~~109	)	$	(~~966~~1,~~521~~937,108	)	$	(2966,~~117,431~~521	)	$	(12,~~210~~117,~~155~~431	)	$	(1,~~824~~210,~~645~~155	)
Total assets	$	18,520,965		$	29,578,487		$	41,693,984		$	46,170,163		$	48,593,649
Increase (decrease) in net asset value per Redeemable Unit:
Increase (decrease) in net asset value per unit
Class A	$	(100.94	)	$	(106.13	)	$	(41.51	)	$	(76.83	)	$	(43.06	)
Class A	$	(106.13	)	$	(41.51	)	$	(76.83	)	$	(43.06	)	$	(58.91	)
Class Z	$	(52.18	)	$	(53.27	)	$	(8.43	)	$	(30.39	)	$	(18.04	)
Class Z	$	(53.27	)	$	(8.43	)	$	(30.39	)	$	(18.04	)	$	—
Net asset value per Redeemable Unit:
Net asset value per unit
Class A	$	1,204.03		$	1,304.97		$	1,411.10		$	1,452.61		$	1,529.44
Class A	$	1,304.97		$	1,411.10		$	1,452.61		$	1,529.44		$	1,572.50
Class Z	$	837.69		$	889.87		$	943.14		$	951.57		$	981.96
Class Z	$	889.87		$	943.14		$	951.57		$	981.96		$	—
Total assets	$	13,060,898		$	18,520,965		$	29,578,487		$	41,693,984		$	46,170,163

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

The General Partner manages all business of the Partnership and the Funds. The General Partner has delegated its responsibility for the investment of the Partnership’s assets to the Advisors and may allocate the Partnership’s assets to additional advisors. The Partnership has invested these assets in the Funds. The General Partner engages a team of approximately 3530 professionals whose primary emphasis is on attempting to maintain quality control among the advisors to the funds operated or managed by the General Partner. A full-time staff of due diligence professionals use proprietary technology and on-site evaluations to monitor new and existing futures money managers. The accounting and operations staff provides processing of subscriptions and redemptions and reporting to limited partners and regulatory authorities. The General Partner also includes staff involved in marketing and sales support. In selecting the “established” advisors for the Partnership, the General Partner considered, among other things, the Advisors’ past performance, trading style, volatility of ~~markets~~ markets traded and fee requirements. In selecting “emerging” advisors for the Partnership the General Partner conducts proprietary research and considers the background of the advisors’ principals, as well as the advisors’ ~~trading~~ trading styles, strategies and markets traded, expected volatility, trading results (to the extent available) and fee requirements. The General Partner may consider other factors in its sole discretion, including, but not limited to, (i) the quality of the advisor’s risk control techniques, (ii) the quality of the advisor’s research techniques and (iii) the advisor’s company infrastructure and plan for development. Such information may be limited due to their “emerging” nature. The General Partner may modify or terminate the allocation of assets to ~~the~~an ~~Advisors~~Advisor at any time and may allocate assets to additional advisors at any time.

Responsibilities of the General Partner include:

•

due diligence examinations of the Advisors;

•

selection, appointment and termination of the Advisors;

•

negotiation of the Management Agreements; and

•

monitoring the activity of the Advisors.

In addition, the General Partner ~~prepares~~will ~~the~~prepare, or will assist the Administrator in preparing the books and records and ~~provides~~will provide or will assist the Administrator in providing, the administrative and compliance services that are required by law or regulation, from time to time, in connection with the operation of the Partnership/Funds. These services include the preparation of required books and records and reports to limited partners, government agencies and regulators; computation of net asset value; calculation of fees; assistance in connection with subscriptions, redemptions and limited partner communications; and preparation of offering documents and sales literature.

While the Partnership and the Funds have the right to seek lower commission rates from other commodity brokers at any time, the General Partner believes that the customer agreements and other arrangements with the commodity broker are fair, reasonable, and competitive.

For the year ended December 31, ~~2014~~2015, ~~prior to~~ the ~~Partnership’s full redemption from KR Master on December 31, 2014, the~~ programs traded by the major commodity trading advisors on behalf of the Partnership were: ~~Krom River — Krom River, Commodity Program,~~ Aventis — Aventis Diversified Commodity Strategy and JE Moody — JEM Commodity Relative Value Program. The General Partner may modify or terminate the allocation of assets ~~among~~to ~~the~~an ~~Advisors~~Advisor at any time and may allocate assets to additional advisors at any time. As of December 31, ~~2014~~2015, ~~prior to the Partnership’s full redemption from KR Master,~~ and as of September 30, ~~2014~~ 2015, the Partnership’s assets were allocated among the Advisors in the following approximate percentages:

Advisor	December 31, ~~2014~~2015				September 30, ~~2014~~2015
Aventis	$	87,~~222~~602,~~306~~612	4664	%	$	69,~~815~~245,~~129~~966	3764	%
Krom River	$	1,059,394	6	%	$	1,424,146	8	%
JE Moody		4,323,517	36	%		5,168,768	36	%
JE Moody	$	8,753,734	48	%	$	10,258,658	55	%

Aventis Asset Management, LLC

Aventis will trade the Partnership’s assets in accordance with its Aventis Diversified Commodity Strategy (formerly known as the Barbarian Program, and before that, the Misfit Barbarian Program), a proprietary, and discretionary trading program developed and refined by Aventis, which is the synthesis of disparate fundamental views and technical indicators overlaid with strict risk management policies on a position, sector and portfolio basis. Aventis has traded its Aventis Diversified Commodity Strategy for client accounts since September 2006.

The Aventis Diversified Commodity Strategy has the following characteristics:

•

Ensemble of Three Sub-Programs: The Aventis Diversified Commodity Strategy is based on an ensemble of three discretionary sub-programs: spreads, directional, and short-term trading. This type of trading is based primarily on the fundamentals of the market (i.e., changes in supply or demand of a commodity). It will also include supply and demand of the pit (i.e., discovery of over bought and over sold conditions).

•

Spread Trading: Approximately 60% of trading activity will be based on calendar, intra-market and intermarket spreads. Intra-market spreads are where one is simultaneously long and short different delivery months of the same contract (i.e., long April Live Cattle versus short June Live Cattle). Intermarket spreads are where one is long one contract and simultaneously short a completely different contract (i.e., long December Natural Gas and short December Crude Oil).

•

Directional Trading: Approximately 35% of the strategy is directional in nature utilizing outright and spread positions.

•

Short-Term Trading: Approximately 5% of the strategy is involved in short-term trading.

•

Markets Followed: The Aventis Diversified Commodity Strategy trades on behalf of the Partnership in the following markets, among others: grains, currencies, energies, softs, livestock and metals.

•

Risk Management: Effective risk management is also a crucial aspect of the program. Account size, expectation, volatility of markets traded and the nature of other positions taken are all factors in deciding whether to take a position and determining the amount of equity committed to that position.

~~Please~~18 note that the percentage of assets allocated to the three discretionary sub-programs (spreads, directional and short-term trading) will be made pursuant to Aventis’s sole discretion and not in order to maintain any constant percentage allocation among the different sub-programs. As a result, the amount of assets allocated to each sub-program – both on a dollar amount and percentage basis – will vary greatly over the life of the Partnership. Trading decisions may require the exercise of judgment by Aventis. Therefore, successful trading may depend on Aventis’s trading ability, knowledge and judgment. Aventis will exercise its judgment and discretion in interpreting the data generated by the Aventis Diversified Commodity Strategy, including selecting the markets which will be followed and actively traded. In addition, Aventis will determine the method by which orders are placed, the types of orders that are to be placed, the overall leverage for the portfolio, and, when applicable, the time at which orders are placed with, and executed by, a broker.

Please note that the percentage of assets allocated to the three discretionary sub-programs (spreads, directional and short-term trading) will be made pursuant to Aventis’s sole discretion and not in order to maintain any constant percentage allocation among the different sub-programs. As a result, the amount of assets allocated to each sub-program – both on a dollar amount and percentage basis – will vary greatly over the life of the Partnership. Trading decisions may require the exercise of judgment by Aventis. Therefore, successful trading may depend on Aventis’ trading ability, knowledge and judgment. Aventis will exercise its judgment and discretion in interpreting the data generated by the Aventis Diversified Commodity Strategy, including selecting the markets which will be followed and actively traded. In addition, Aventis will determine the method by which orders are placed, the types of orders that are to be placed, the overall leverage for the portfolio, and, when applicable, the time at which orders are placed with, and executed by, a broker.

The trading program to be followed by Aventis does not assure successful trading. Investment decisions made in accordance with the Aventis Diversified Commodity Strategy will be based on an assessment of available market information. However, because of the large quantity of information at hand, the number of available facts that may be overlooked and the variables that may shift, any investment decision must, in the final analysis, be based on the judgment of Aventis.

The decision by Aventis not to trade certain markets or not to make certain trades may result at times in missing price moves and hence profits of great magnitude, which other trading advisors who are willing to trade these markets may be able to capture. Aventis’s approach is dependent in part on the existence of certain technical or fundamental indicators. There have been periods in the past when there were no such market indicators, and those periods may recur. Aventis believes that the development of a trading strategy is a continual process. As a result of further analysis and research, changes have been made from time to time in the specific manner in which the Aventis Diversified Commodity Strategy evaluates price movements in various markets, and it is likely that similar revisions will be made in the future. As a result of such modifications, the program that may be used by Aventis in the future will differ from that used by Aventis in the past and might differ from that presently being used.

The Aventis Diversified Commodity Strategy is a proprietary and confidential program, and the foregoing description is, of necessity, general and is not intended to be exhaustive. Consequently, an investor will not be able to determine the full details of the program or whether the program is being followed. There can be no assurance that any trading strategy of Aventis will produce profitable results or will not result in losses.

Krom River Investment Management (Cayman) Limited and Krom River Trading A.G.

Krom River traded its Commodity Program on behalf of the Partnership, a systematic trading system that relied on fundamental and technical factors. The Commodity Program traded in at least 20 different markets including base metals, precious metals, energy, agricultural and softs. The trade types included long volatility, directional and relative value. The trading instruments were exchange-listed futures and options, which were traded on both fundamental and technical basis. Krom River’s Commodity Program did not trade OTC instruments, nor did it take physical deliveries.

J E Moody & Company LLC

The JEM Commodity Relative Value Program is a systematic program that uses quantitative models to detect and exploit price shifts and mispricings between related instruments in the energy, metal and agricultural markets, while employing hedging methods to maintain approximate market or sector neutrality. The strategies do not make un-hedged directional bets. Most trades are implemented using offsetting long and short positions in futures and futures options, thus reducing exposure to sudden changes in market direction. As examples, such offsetting positions may be in different delivery months of the same commodity market (e.g., calendar or butterfly spreads), in different but related markets (e.g., crude oil and unleaded gasoline) or between contracts traded on different exchanges (e.g., New York and London copper).

Market coverage for the JEM Commodity Relative Value Program portfolio includes crude oil and petroleum distillates, natural gas, industrial metals, precious metals, grains, livestock, foodstuffs, fibers and potentially other commodities. JE Moody utilizes primarily exchange-traded futures and futures options to implement its relative value trades, although trades may also be made using other instruments, such as commodity swaps or OTC derivatives contracts.

The trading opportunities captured by the JEM Commodity Relative Value Program models are believed to arise due to various factors, including: changes in relative supply and demand of different commodity contracts, the idiosyncratic actions of market participants, external events that may disrupt production (e.g., droughts, hurricanes, labor unrest or geopolitics), and risk premia associated with general uncertainties in future supply or demand. By virtue of their relative value nature, JEM Commodity Relative Value Program trades may be interpreted as providing market liquidity to directional traders who need it, and earning a risk premium by doing so.

Relative value strategies are frequently employed by hedge funds in the equity, fixed income, convertible bond and option markets, but are relatively uncommon in the commodity or managed futures arenas. Over extended time periods, relative value strategies have been observed to produce more consistent returns and higher Sharpe ratios than un-hedged, directional trading strategies. With the high leverage often used, however, some relative value managers have experienced significant losses, particularly when extreme market events have occurred.

JE Moody attempts to manage the risk of large losses by limiting the overall portfolio leverage and the degree of exposure to any single commodity market or sector. The JEM Commodity Relative Value Program portfolio typically includes about 15 to 25 active relative value trades, with the number of open positions depending on the arbitrage opportunities available. The JEM Commodity Relative Value Program trades have low mutual correlation, cover multiple markets and sectors and thus enable meaningful diversification within the JEM Commodity Relative Value Program portfolio.

When few favorable relative value trading opportunities arise in the commodity markets, or as JE Moody may determine, JE Moody may choose to make relative value trades in the financial futures, options, swap or derivatives markets. At times when many or few trading opportunities are available, JE Moody may increase or reduce the overall JEM Commodity Relative Value Program portfolio exposure.

To hedge offsetting long and short positions, JE Moody may use techniques such as static hedging, dynamic hedging and option overlays. Moreover, hedging may seek to achieve market or sector neutrality via various benchmarks, such as by being “contract neutral,” “dollar neutral” or “delta neutral.” No hedging strategy is perfect, but each has its costs, risks, advantages and limitations. Even with ~~wellhedged~~well-hedged positions, there is usually some residual exposure to directional market movements. JE Moody seeks to balance the advantages of the hedging strategy used in a particular relative value trade versus the costs and risks of implementing the trade. The General Partner and JE Moody have agreed that JE Moody will trade the Partnership’s assets allocated to JE Moody at a level that is up to three times the amount of assets allocated.

No assurance can be given that the Advisors’ strategies will be successful or that they will generate profits for the Partnership. Specific Fund level performance information is included in Note 6 to the Partnership’s financial statements included in “Item 8 Financial Statements and Supplementary Data.”

~~Specific~~For ~~Fund~~the ~~level~~period ~~performance~~January ~~information~~1, is2015 ~~included~~through inDecember ~~Note~~31, 62015, to the ~~Partnership’s~~average ~~financial~~allocation ~~statements~~by ~~included~~commodity ~~in “Item~~market 8sector ~~Financial~~for ~~Statements~~each ~~and~~of ~~Supplementary~~the ~~Data.”~~Funds was as follows:

For the period January 1, 2014 through December 31, 2014, the average allocation by commodity market sector for each of the Funds was as follows:

MB Master Fund L.P.

Energy	5534.87	%
Grains	3233.46	%
Livestock	4.83	%
Metals	015.48	%
Softs	611.6	%

KRJEM Master Fund L.P.

Energy	1663.2	%
Grains	117.09	%
Livestock	222.19	%
Metals	621.27	%
Softs	84.53	%

JEM Master Fund L.P

Energy	71.8	%
Grains	6.0	%
Livestock	15.5	%
Metals	2.7	%
Softs	4.0	%

(a) Liquidity.

The Partnership does not engage in sales of goods or services. Its only assets are its investment in the Funds and cash. The Funds’ ~~only~~ assets ~~are~~consist ~~their~~only of (a) expense reimbursement (MB Master only) and (b) equity in ~~their~~ trading ~~accounts~~account, consisting of cash and cash margin, net unrealized appreciation on open futures contracts, net unrealized appreciation on forward contracts, U.S. Treasury bills and options purchased, if applicable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership. While substantial losses could lead to a material decrease in liquidity, no such illiquidity occurred during the year ended December 31, ~~2014~~2015.

1620

To minimize the risk relating to low margin deposits, the ~~Partnership/~~Funds follow certain trading policies, including:

(i) The ~~Partnership/~~Funds invest their assets only in commodity interests that anthe respective Advisor ~~believe~~believes are traded in sufficient volume to permit ease of taking and liquidating positions. Sufficient volume, in this context, refers to a level of liquidity that anthe respective Advisor believes will permit it to enter and exit trades without noticeably moving the market.

(ii) An Advisor will not initiate additional positions in any commodity interest if these positions would result in aggregate positions requiring a margin of more than 66 2⁄/3% of the ~~Partnership~~Funds’s net assets allocated to that Advisor.

(iii) The ~~Partnership/~~Funds may occasionally accept delivery of a commodity. Unless such delivery is disposed of promptly by retendering the warehouse receipt representing the delivery to the appropriate clearinghouse, the physical commodity position is fully hedged.

(iv) The ~~Partnership/~~Funds do not employ the trading technique commonly known as “pyramiding,” in which the speculator uses unrealized profits on existing positions as margin for the purchases or sale of additional positions in the same or related commodities.

(v) The ~~Partnership/~~Funds do not utilize borrowings other than short-term borrowings if the ~~Partnership/~~Funds take delivery of any cash commodities.

(vi) The Advisors may, from time to time, employ trading strategies such as spreads or straddles on behalf of the ~~Partnership/~~Funds. The terms “~~Spread~~spread” and “straddle” describe commodity futures trading strategies involving the simultaneous buying and selling of futures contracts on the same commodity but involving different delivery dates or markets.

(vii) The ~~Partnership/~~Funds will not permit the churning of their commodity trading accounts. The term “churning” refers to the practice of entering and exiting trades with a frequency unwarranted by legitimate efforts to profit from the trades, driven by the desire to generate commission income.

From January 1, ~~2014~~2015 through December 31, ~~2014~~2015, the Partnership’s average margin to equity ratio (i.e., the percentage of assets on deposit required for margin) was approximately 67.42%. The foregoing margin to equity ratio takes into account cash held in the Partnership’s name, as well as the allocable value of the positions and cash held on behalf of the Partnership in the name of the Funds.

In the normal course of business, the Partnership, indirectly through its ~~investment~~investments in the Funds, is a party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include futures, forwards, ~~futures~~U.S. Treasury bills, ~~options~~swaps and ~~swaps~~options, whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash balances, or to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange, a swap execution facility or OTC. Exchange-traded instruments include futures and certain standardized forward, option and swap contracts. Certain swap contracts may also be traded on a swap execution facility or OTC. OTC contracts are negotiated between contracting parties and also include certain forward and option contracts. Specific market movements of commodities or futures contracts underlying an option cannot be accurately be predicted. The purchaser of an option may lose the entire premium paid for the option. The writer, or seller, of an option has unlimited risk. Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded instruments because of the greater risk of default by the counterparty to an OTC contract. Since May 1, 2011, none of the ~~Partnership’s/~~Funds’ contracts have traded OTC, although contracts may be traded OTC in the future.

The risk to the Limited ~~limited~~Partners ~~partners~~ that have purchased Redeemable Units is limited to the amount of their share of the Partnership’s net assets and undistributed profits. This limited liability is a result of the organization of the Partnership as a limited partnership under Delaware law.

Market risk is the potential for changes in the value of the financial instruments traded by the Funds due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the volatility and liquidity in the markets in which the related underlying assets are traded. The Funds are exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short.

Credit risk is the possibility that a loss may occur due to the failure of a counterparty to perform according to the terms of a contract. The Partnership’s/Funds’ risk of loss in the event of a counterparty default is typically limited to the amounts recognized in the Statements of Financial Condition and is not represented by the contract or notional amounts of the instruments. The Partnership’s/Funds’ risk of loss is reduced through the use of legally enforceable master netting agreements with counterparties that permit the Partnership/Funds to offset unrealized gains and losses and other assets and liabilities with such counterparties upon the occurrence of certain events. The Partnership/Funds had credit risk and concentration risk during the reporting period and prior periods as MS&Co. and/or CGM or their affiliates were the counterparties or brokers with respect to the Partnership’s/Funds’ assets. Credit risk with respect to exchange-traded instruments is reduced to the extent that, through MS&Co. and/or CGM, the Partnership’s/Funds’ counterparty is an exchange or clearing organization. The Partnership/Funds continue to be subject to such risks with respect to MS&Co.

AsThe ~~both~~Partnership/Funds ahad ~~buyer~~credit risk and ~~seller~~ ofconcentration ~~options,~~risk during the reporting ~~Funds~~period ~~pay~~and orprior ~~receive~~periods aincluded ~~premium~~in atthis ~~the~~report, ~~outset~~as MS&Co. and/or ~~then~~CGM ~~bear~~or ~~the~~their ~~risk~~affiliates ofwere ~~unfavorable changes in~~ the ~~price~~sole ofcounterparties ~~the~~or ~~contract~~brokers ~~underlying~~with ~~the~~respect ~~option.~~to ~~Written options expose~~ the Partnership’s/Funds’ toassets. ~~potentially~~Credit ~~unlimited~~risk ~~liability; for~~with ~~purchased~~respect ~~options,~~to ~~the~~exchange-traded instruments ~~risk of loss~~ is ~~limited~~reduced to the ~~premiums~~extent ~~paid.~~that, ~~Certain~~through ~~written~~MS&Co. ~~put options permit cash settlement~~ and/or doCGM, ~~not require~~ the ~~option~~counterparty ~~holder~~was toan ~~own~~exchange ~~the~~or ~~reference~~clearing ~~asset~~organization. The Partnership/Funds docontinue ~~not~~to ~~consider~~be ~~these~~subject ~~contracts~~to such risks with respect to ~~be guarantees~~MS&Co.

The General Partner monitors and attempts to control the ~~Funds’~~ 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/Funds 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 ~~and exchange-cleared swap~~, forward and option contracts by sector, margin requirements, gain and loss transactions and collateral positions. (See also “Item 8. Financial Statements and Supplementary Data.” for further information on financial instrument risk included in the notes to the financial statements.)

17The majority of these financial instruments mature within one year of the inception date. However, due to the nature of the business, these instruments may not be held to maturity.

~~Other~~The ~~than the risks inherent in commodity futures and other derivatives, the~~ Partnership ~~knows of no trends, demands, commitments, events or uncertainties which will result in, or which are reasonably likely to result in, the Partnership~~’s/Funds’ ~~liquidity~~risk ~~increasing or decreasing in any material way. The Limited Partnership Agreement provides that the Partnership shall terminate under certain circumstances upon the first to occur~~ of ~~the~~loss ~~following:~~is ~~(i)~~reduced ~~the~~through ~~vote to dissolve~~ the ~~Partnership~~use ~~by limited partners owning more than 50%~~ of ~~all classes of units then outstanding; notice of which is~~ ~~sent~~legally byenforceable ~~registered~~master ~~mail~~netting toagreements ~~the~~with ~~General~~counterparties ~~Partner~~that ~~not~~permit ~~less than ninety (90) days prior to~~ the ~~effective date of such dissolution; (ii) assignment by the General Partner of all of its interest in the~~ Partnership,/Funds orto ~~the~~offset ~~withdrawal,~~unrealized ~~removal,~~gains ~~bankruptcy or~~and ~~dissolution~~losses ofand ~~the~~other ~~General~~assets ~~Partner,~~and ~~unless~~liabilities ~~the~~with ~~Partnership~~such iscounterparties ~~continued~~upon ~~as described in~~ the ~~Limited Partnership Agreement; or (iii) the~~ occurrence of ~~any~~certain ~~event which shall make it unlawful for the existence of the Partnership to be continued~~events. ~~In addition, the General Partner may, in its sole discretion, cause the Partnership to dissolve if the Partnership’s aggregate net assets decline to less than $1,000,000.~~

Other than the risks inherent in U.S. Treasury bills, money market mutual fund securities, commodity futures and other derivatives, the Partnership knows of no trends, demands, commitments, events or uncertainties which will result in, or which are reasonably likely to result in, the Partnership’s liquidity increasing or decreasing in any material way.

(b) Capital Resources.

(i) The Partnership has made no material commitments for capital expenditures.

(ii) The Partnership’s capital consists of the capital contributions of the partners as increased or decreased by gains or losses on trading and by expenses, interest income, subscriptions and redemptions of Redeemable Units and distributions of profits, if any. Gains or losses on trading cannot be predicted. Market movements in commodities are dependent upon fundamental and technical factors which the Advisors may or may not be able to identify, such as changing supply and demand relationships, weather, government agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. Partnership expenses consist of, among other things, ongoing selling agent fees, management fees and ~~administrative~~General Partner fees. The level of these expenses is dependent upon trading performance and the ability of the Advisors to identify and take advantage of price movements in the ~~Commodity~~commodity ~~Markets~~markets, in addition to the level of ~~Net~~net ~~Assets~~assets maintained. In addition, the amount of interest income payable by the Partnership’s commodity broker is dependent upon interest rates over which neither the Partnership nor the commodity broker has control.

No forecast can be made as to the level of redemptions in any given period. A limited partner may require the Partnership to redeem some or all of their Redeemable Units at the net asset value per Redeemable Unit as of the end of any month on three business days’ notice to the General Partner. There is no fee charged to limited partners in connection with redemptions. Redemptions are generally funded out of the Partnership’s cash holdings. For the year ended December 31, 2014, 8,458.6440 Class A Redeemable Units were redeemed totaling $11,253,309, 71.4170 Class Z Redeemable Units were redeemed totaling $63,569 and 112.2640 Class Z General Partner unit equivalents were redeemed totaling $99,977. For the year ended December 31, 2013, 7,400.1910 Class A Redeemable Units were redeemed totaling $10,500,783 and 1,718.0000 Class Z General Partner unit equivalents were redeemed totaling $1,600,861. For the year ended December 31, 2012, 4,546.2170 Class A Redeemable Units were redeemed totaling $6,712,524, 22~~.5310 Class~~ ~~Z Redeemable Units were redeemed totaling $21,764 and 13,427.3899 Class Z General Partner unit equivalents were redeemed totaling $12,911,724.~~

No forecast can be made as to the level of redemptions in any given period. A limited partner may require the Partnership to redeem some or all of their Redeemable Units at the net asset value per Redeemable Unit as of the end of any month on three business days’ notice to the General Partner. There is no fee charged to limited partners in connection with redemptions. Redemptions are generally funded out of the Partnership’s cash holdings and/or redemptions from the Funds. For the year ended December 31, ~~2014~~2015, ~~there~~4,295.8170 Class A Redeemable Units were ~~additional~~redeemed ~~subscriptions~~totaling of$5,416,401, 25.3060 2Class Z Redeemable Units were redeemed totaling $24,~~791~~024 and 48.~~0570~~9960 Class AZ General Partner Redeemable Units were redeemed totaling $344,~~723,628~~768. For the year ended December 31, ~~2013~~2014, ~~there~~8,458.6440 Class A Redeemable Units were ~~additional~~redeemed ~~subscriptions~~totaling $11,253,309, of71.4170 3Class Z Redeemable Units were redeemed totaling $63,~~932~~569 and 112.~~0890~~2640 Class AZ General Partner Redeemable Units were redeemed totaling $599,~~592,487~~977. For the year ended December 31, ~~2012~~2013, ~~there were additional subscriptions of 9~~7,~~407~~400.~~1618~~1910 Class A Redeemable Units ~~totaling~~were redeemed totaling $1410,~~178~~500,~~378~~783 and ~~subscriptions of 183~~1,718.~~4279~~0000 Class Z General Partner Redeemable Units were redeemed totaling $~~179~~1,~~256~~600,861.

For the year ended December 31, 2015, there were additional subscriptions of 426.8410 Class A Redeemable Units totaling $565,997. For the year ended December 31, 2014, there were additional subscriptions of 2,791.0570 Class A Redeemable Units totaling $3,723,628. For the year ended December 31, 2013, there were additional subscriptions of 3,932.0890 Class A Redeemable Units totaling $5,592,487.

For the year ended December 31, ~~2014~~2015, the net asset value per ~~unit~~Redeemable Unit for Class A decreased 7.57% from $1,~~411~~304.1097 to $1,~~304~~204.9703. For the year ended December 31, ~~2014~~2015, the net asset value per ~~unit~~Redeemable Unit for Class Z decreased 5.69% from $~~943~~889.1487 to $~~889~~837.8769. For the year ended December 31, ~~2013~~2014, the net asset value per ~~unit~~Redeemable Unit for Class A decreased 27.95% from $1,~~452~~411.6110 to $1,~~411~~304.1097. For the year ended December 31, ~~2013~~2014, the net asset value per ~~unit~~Redeemable Unit for Class Z decreased 05.96% from $~~951~~943.5714 to $~~943~~889.1487. For the year ended December 31, ~~2012~~2013, the net asset value per ~~unit~~Redeemable Unit for Class A decreased 52.09% from $1,~~529~~452.4461 to $1,~~452~~411.6110. For the year ended December 31, ~~2012~~2013, the net asset value per ~~unit~~Redeemable Unit for Class Z decreased 30.19% from $~~981~~951.9657 to $~~951~~943.5714.

The Partnership, through its investment in the Funds, experienced a net trading loss before fees and expenses of $~~682~~211,~~546~~675 for the year ended December 31, ~~2014~~2015. Losses were primarily attributable to the Funds’ trading of ~~energy~~grains, livestock, metals and softs, and were partially offset by gains in ~~grains, livestock and metals~~energy. The net trading gain (or loss) ~~realized~~ from the Partnership’s investment in the Funds is disclosed on page 33 39 under “Item 8. Financial Statements and Supplementary Data.”

18The most significant losses were incurred in the metals markets during June, August, and September from long positions in nickel futures as prices moved lower on reports of high global inventories and weakening industrial demand in China. Within the livestock sector, losses were recorded during March from short positions in live cattle futures as prices moved higher after industry reports indicated U.S. cattle herds shrank during the first quarter. Additional losses were experienced from short positions in lean hog futures during April and long live cattle futures positions during September. Within the grains sector, losses were incurred during April from long positions in soybean and wheat futures as prices moved lower after the Department of Agriculture released a report which indicated U.S. grain stockpiles were at their highest levels in 28 years. During October, losses were experienced from long positions in soybean and corn futures as prices weakened following the release of U.S. government forecasts which predicted that global grain inventories will reach record levels in 2016. Additional losses in this sector were experienced during September from choppy price action in soybean futures. The Partnership’s trading losses during the year were offset by gains achieved within the energy markets during February from long positions in crude oil and its related products as prices rallied as cold weather blanketed much of the U.S. and OPEC released a bullish monthly oil-market report. Additional gains during February were recorded from long positions in heating oil futures as prices spiked as severe cold weather in the U.S. boosted demand from homes and businesses. During July, gains within the energies were experienced from short positions in crude oil and its related products as prices dropped as investors weighed the prospect of easing restrictions on Iranian oil exports adding supply to an oversaturated world market. Within the soft commodity markets, gains were recorded during September from long positions in sugar futures as prices advanced after adverse weather disrupted the harvest in Brazil. Gains in this sector were also experienced during October from long positions in cocoa futures as extreme dry weather in West Africa threatened the region’s cocoa crops and pushed prices higher.

The ~~most~~Partnership, ~~significant~~through ~~losses~~its ~~were~~investment ~~incurred within the energy markets during February from short positions~~ in ~~crude oil futures as prices rose after Energy Information Administration data indicated crude stockpiles declined during~~ the ~~month. Losses in the energy sector were also incurred during June from short positions in Brent crude oil~~ futures as prices rallied on speculation that an escalation of internal fighting in Iraq would disrupt oil exports from the Middle East. Additional losses were experienced during March from long positions in crude oil and its related products as prices dropped after reports indicated U.S. crude oil supplies exceeded previous forecasts. Within the soft commodity marketsFunds, losses were recorded during September from long positions in cotton futures as prices declined after reports showed cotton inventories in the U.S. advanced to 30-year highs. Additional losses during September were experienced ~~from~~a ~~long~~net ~~positions~~trading inloss ~~sugar~~before ~~futures~~fees ~~as prices moved lower after bumper crops in Thailand~~ and ~~India~~expenses ~~expanded~~of ~~the global supply glut. During October~~$682,546 ~~losses within the soft commodity markets were recorded from long positions in coffee futures as prices retreated as rains brought relief to drought-stricken areas in Brazil. The Partnership’s losses~~ for the year ~~were~~ended ~~partially~~December ~~offset by gains achieved within the grains markets from short positions in soybean futures during June~~31, ~~July, August, and September as favorable weather in the Midwest increased speculation that U.S. crop totals would reach near record levels in~~ 2014. ~~Within~~ ~~the~~Losses ~~livestock markets, gains~~ were ~~achieved~~primarily ~~during~~attributable ~~June~~to from long positions in lean hog futures as prices increased on speculation U.S. hog herds would remain low. Gains were also recorded during April from long positions in live cattle futures as prices advanced in the ~~second~~Funds’ ~~half~~trading of ~~the~~energy ~~month~~and ~~after government reports indicated U.S. cattle herds shrank to their lowest levels in decades. During October~~softs, ~~further~~and ~~gains~~ were ~~experienced~~partially ~~from~~offset ~~short~~by ~~positions in lean hog futures as prices moved lower as U.S. pig farms continued to recover from a virus that decimated hog herds earlier in the year. Within the metals complex,~~ gains ~~were recorded during March from short positions~~ in ~~copper futures as prices declined amid concern~~grains, ~~weak~~livestock manufacturing data in China would limit demand for the industrial metal. Additional gains in the metals sector were achieved during February from long positions in gold futures as increased geo-political turmoil boosted demand and ~~prices~~metals.

The ~~Partnership,~~most ~~through~~significant ~~its~~losses ~~investment~~were inincurred within the ~~Funds,~~energy ~~experienced~~markets aduring ~~net~~February ~~trading~~from ~~gain~~short ~~before~~positions ~~fees~~in ~~and~~crude oil ~~expenses~~futures ofas ~~$1,130,812~~prices ~~for~~rose ~~the~~after ~~year~~Energy ~~ended December~~Information ~~31,~~Administration ~~2013~~data indicated crude stockpiles declined during the month. ~~Gains~~Losses in the energy sector were ~~primarily~~also ~~attributable~~incurred toduring ~~the~~June ~~Funds’~~from ~~trading~~short positions in Brent crude oil futures as prices rallied on speculation that an escalation of ~~energy,~~internal ~~grains~~fighting ~~livestock,~~in ~~metals~~Iraq would disrupt oil exports from the Middle East. Additional losses were experienced during March from long positions in crude oil and ~~softs~~its related products as prices dropped after reports indicated U.S. crude oil supplies exceeded previous

~~The~~23 most significant trading gains were recorded within the energy sector during October from short positions in crude oil futures as prices declined after reports showed U.S. seasonal petroleum demand fell to a fifteen-year low. Additional gains during October were recorded from long positions in natural gas futures as prices trended higher early in the month due to colder than forecast weather in the U.S. Further gains in this sector were recorded during May and November from short positions in crude oil futures as prices declined. Within the grain markets, gains were achieved during July from short positions in corn and soybean futures as prices fell after rain in the U.S. Midwest improved growing conditions and boosted prospects for a record crop. Additional gains were recorded during June from short positions in corn and soybean futures as prices fell after warm weather and soil moisture boosted the outlook for U.S. yields. Further trading gains in grains were recorded from February through April and from September through December. Within the soft commodities, gains were recorded during October from short futures positions in cotton as prices declined as reports predicted near record crop totals being harvested in India. Additional gains achieved during October were from long positions in cocoa futures as prices advanced due to increased consumer demand and concern regarding West African crops. During May, gains in the soft commodities were recorded from short futures positions in cotton as prices declined on speculation that slowing growth in China will curb demand. In the livestock sector, trading gains were recorded during February from short futures positions in lean hogs as prices declined on weaker domestic demand for pork. Further gains were recorded by the Partnership from short positions in lean hog futures during July as prices declined amid reports of record herds in the U.S. In the metals complex, profits were recorded during January primarily from long futures positions in platinum as prices increased on reports of supply disruptions in South Africa, the world’s largest platinum producer. Further gains in metals resulted from short futures positions in gold as prices declined sharply during April.

19 forecasts. Within the soft commodity markets, losses were recorded during September from long positions in cotton futures as prices declined after reports showed cotton inventories in the U.S. advanced to 30-year highs. Additional losses during September were experienced from long positions in sugar futures as prices moved lower after bumper crops in Thailand and India expanded the global supply glut. During October, losses within the soft commodity markets were recorded from long positions in coffee futures as prices retreated as rains brought relief to drought-stricken areas in Brazil. The Partnership’s losses for the year were partially offset by gains achieved within the grains markets from short positions in soybean futures during June, July, August, and September as favorable weather in the Midwest increased speculation that U.S. crop totals would reach near record levels in 2014. Within the livestock markets, gains were achieved during June from long positions in lean hog futures as prices increased on speculation U.S. hog herds would remain low. Gains were also recorded during April from long positions in live cattle futures as prices advanced in the second half of the month after government reports indicated U.S. cattle herds shrank to their lowest levels in decades. During October, further gains were experienced from short positions in lean hog futures as prices moved lower as U.S. pig farms continued to recover from a virus that decimated hog herds earlier in the year. Within the metals complex, gains were recorded during March from short positions in copper futures as prices declined amid concern weak manufacturing data in China would limit demand for the industrial metal. Additional gains in the metals sector were achieved during February from long positions in gold futures as increased geo-political turmoil boosted demand and prices.

~~During~~The ~~the reporting period and prior periods included in this report, the~~ Partnership ~~was~~is paid interest on 100% of the average daily equity maintained in cash in the Partnership’s (or the Partnership’s allocable portion of a Fund’s) brokerage account at ~~a 30-day U.S. Treasury bill rate determined weekly based on~~ the ~~average non-competitive yield on 3-month U.S. Treasury bills maturing in 30 days from the date on which such weekly rate is determined, or at the~~ monthly average of the 4-week U.S. Treasury bill discount rate. Any interest earned on the Partnership’s account in excess of the amounts described above, if any, will be retained by MS&Co. and~~/or~~ ~~CGM and~~ shared with the General Partner. ~~Interest~~All ~~income~~interest ~~from~~earned ~~investment~~on inU.S. Treasury bills and money market mutual fund securities will be retained by the Funds. Interest income for the three ~~and~~months ~~twelve~~ended December 31, 2015 increased by $394, as compared to the corresponding period in 2014. The increase in interest income was due to higher U.S. Treasury bill rates during the three months ended December 31, 2015, as compared to the corresponding period in 2014. ~~decreased~~Interest income for the bytwelve $2months ended December 31,~~619~~ ~~and~~2015 decreased by $72,~~655~~270, ~~respectively,~~ as compared to the corresponding ~~periods~~period in ~~2013~~2014. The decrease in interest income iswas ~~primarily~~ due to lower average daily equity ~~and lower U.S. Treasury bill rates~~ during the ~~three and~~ twelve months ended December 31, ~~2014~~2015, as compared to the corresponding ~~periods~~period in ~~2013~~2014. Interest earned by the Partnership will increase the net asset value of the Partnership. The amount of interest income earned by the Partnership ~~during~~depends ~~the reporting period depended~~ on the average daily equity in the Partnership’s and the Funds’ accounts and upon interest rates over which neither the Partnership/Funds nor MS&Co. ~~and/or~~have ~~CGM had~~ control.

Ongoing selling agent fees are calculated as a percentage of the net asset value of each Class of Redeemable Units as of the end of each month and, therefore, are affected by trading performance, subscriptions and redemptions. Accordingly, they must be compared in relation to the fluctuations in monthly net asset values. Ongoing selling agent fees for the three and twelve months ended December 31, ~~2014~~2015 decreased by $5724,~~943~~419 and $~~204~~98,~~827~~627, respectively, as compared to the corresponding periods in ~~2013~~2014. The decrease in ongoing selling agent fees is due to lower ~~adjusted~~average net assets per Class during the three and twelve months ended December 31, ~~2014~~2015, as compared to the corresponding periods in ~~2013~~2014.

Management fees are calculated as a percentage of the net asset value of each Class of Redeemable Units allocated to the respective Advisor at the end of the month and, therefore, are affected by trading performance, subscriptions and redemptions. Accordingly, they must be compared in relation to the fluctuations in monthly net asset values. Management fees for the three and twelve months ended December 31, ~~2014~~2015 decreased by $5023,~~469~~008 and $~~224~~96,~~493~~615, respectively, as compared to the corresponding periods in ~~2013~~2014. The decrease in management fees is due to lower ~~adjusted~~average net assets per Class during the three and twelve months ended December 31, ~~2014~~2015, as compared to the corresponding periods in ~~2013~~2014.

~~Administrative~~General Partner fees are paid to the General Partner for administering the business and affairs of the Partnership. These fees are calculated as a percentage of the net asset value for each Class of Redeemable Units as of the end of each month and are affected by trading performance, subscriptions and redemptions. ~~Administrative~~General Partner fees for the three and twelve months ended December 31, ~~2014~~ 2015 decreased by $2912,~~363~~513 and $~~108~~51,~~328~~133, respectively, as compared to the corresponding periods in ~~2013~~2014. The decrease in ~~administrative~~General Partner fees is due to lower ~~adjusted~~average net assets per Class during the three and twelve months ended December 31, ~~2014~~2015, as compared to the corresponding periods in ~~2013~~2014.

Incentive fees are based on the new trading profits generated by each Advisor as defined in each Advisor’s respective Management Agreement. There were no incentive fees earned for the three and twelve months ended December 31, ~~2014,~~2015 ~~respectively. Trading performance for the three~~ and ~~twelve months ended December 31, 2013 resulted in incentive fees of $26,225 and $204,558, respectively~~2014.

2024

The Partnership pays professional fees and other expenses, which generally include legal and accounting expenses related to the offering, filing, reporting and data processing fees. Professional fees for the years ended December 31, ~~2014~~2015 and ~~2013~~2014 were $~~195~~247,~~331~~739 and $~~274~~279,~~661~~762, respectively.

The Partnership pays other expenses, which generally include certain offering costs and filing, reporting and data processing fees. Other expenses for the years ended December 31, 2014 and 2013 were $84,431 and $113,321, respectively.

The Partnership, through its investment in the Funds, experienced a net trading gain before fees and expenses of $411,788 for the year ended December 31, 2012. Gains were primarily attributable to the Funds’ trading of energy, grains and metals, and were partially offset by losses in livestock and softs.

During 2012, the Partnership recorded trading gains from trading in grains, energies and metals. These gains were offset by losses from trading soft commodities and livestock. The most significant gains were recorded within the grains complex during July from long futures positions in soybeans and corn as prices climbed higher due to a severe drought in the U.S. Midwest, thus deteriorating supply amidst rising demand. Further gains were recorded by the Partnership from trading in corn futures and options during January and March despite significant volatility in these markets due to weather related concerns and weaker crop projections in the U.S. Long futures positions in soybeans were also profitable as supply shortages in South America helped push prices higher in February. Metals trading also recorded gains during September from long futures positions in platinum, which benefited during the month as prices rallied on concerns that labor strikes in South Africa, where roughly 80% of the world’s platinum is mined, would curb supply. Further gains were recorded during September from long futures positions in gold and silver as prices advanced after the U.S. Federal Reserve announced a third round of quantitative easing. Energies trading recorded gains during December from short futures positions in Brent crude oil as prices declined during the first half of the month due to expected weaker global demand for the commodity. Further gains were recorded during the latter half of December from long futures positions in WTI crude oil as prices moved higher after the International Energy Agency increased its oil demand forecast for 2013. Gains were also recorded during October from short futures positions in Brent crude oil as prices declined amid speculation that stockpiles climbed in the U.S., the world’s biggest user of the commodity. Further gains were recorded from short futures positions in RBOB gasoline as prices declined due to falling crude oil prices globally. The Partnership’s gains during the year were offset by losses in soft commodities, notably during April, from long futures positions in cotton as prices declined on concerns that a record harvest had oversupplied the market. Further losses were incurred in this sector from long futures positions in coffee as prices fell during April. Additional losses were incurred in livestock during April as long futures positions in lean hogs were negatively impacted as prices declined on speculation that U.S. pork demand was slowing. Further losses were incurred in livestock trading during June from short futures positions in live cattle and lean hogs as prices rallied late in the month on rising grain prices.

In the General Partner’s opinion, the Advisors continue to employ trading methods and produce results consistent with their expected performance given market conditions and the objectives of the Partnership. The General Partner continues to monitor the Advisors’ performance on a daily, weekly, monthly and annual basis to ensure that these objectives are met.

Commodity markets are highly volatile. Broad price fluctuations and rapid inflation increase the risks involved in commodity trading, but also increases the possibility of profit. The profitability of the Partnership depends on the existence of major price trends and the ability of the Advisors to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Advisors are able to identify them, the Partnership expects to increase capital through operations.

In selecting the “established” advisors for the Partnership, the General Partner considered, among other things, the Advisors’ past performance, trading style, volatility of markets traded and fee requirements. In selecting “emerging” advisors for the Partnership, the General Partner conducts proprietary research and considers the background of the advisors’ principals, as well as the advisors’ trading styles, strategies and markets traded, expected volatility, trading results (to the extent available) and fee requirements. The General Partner may consider other factors in its sole discretion, including, but not limited to, (i) the quality of the advisor’s risk control techniques, (ii) the quality of the advisor’s research techniques and (iii) the advisor’s company infrastructure and plan for development. Such information may be limited due to their “emerging” nature. The General Partner may modify or terminate the allocation of assets to an Advisor at any time and may allocate assets to additional advisors at any time.

(d) Off-Balance Sheet Arrangements. None.

(e) Contractual Obligations. None.

(f) Operational Risk.

The Partnership, through its investment in the Funds, is directly exposed to market risk and credit risk, which arise in the normal course of its business activities. Slightly less direct, but of critical importance, are risks pertaining to operational and back office support. This is particularly the case in a rapidly changing and increasingly global environment with increasing transaction volumes and an expansion in the number and complexity of products in the marketplace.

Such risks include:

Operational/Settlement Risk — the risk of financial and opportunity loss and legal liability attributable to operational problems, such as inaccurate pricing of transactions, untimely trade execution, clearance and/or settlement, or the inability to process large volumes of transactions. The Partnership/Funds are subject to increased risks with respect to their trading activities in emerging market instruments, where clearance, settlement and custodial risks are often greater than in more established markets.

Technological Risk — the risk of loss attributable to technological limitations or hardware failure that constrain the Partnership’s/Funds’ ability to gather, process, and communicate information efficiently and securely, without interruption, to customers, and in the markets where the Partnership/Funds participates. Additionally, the General Partner’s computer systems may be vulnerable to unauthorized access, mishandling or misuse, computer viruses or malware, cyber attacks and other events that could have a security impact on such systems. If one or more of such events occur, this potentially could jeopardize a limited partner’s personal, confidential, proprietary or other information processed and stored in, and transmitted through, the General Partner’s computer systems, and adversely affect the Partnership’s /Funds’ business, financial condition or results of operations.

Legal/Documentation Risk — the risk of loss attributable to deficiencies in the documentation of transactions (such as trade confirmations) and customer relationships (such as master netting agreements) or errors that result in noncompliance with applicable legal and regulatory requirements.

Financial Control Risk — the risk of loss attributable to limitations in financial systems and controls. Strong financial systems and controls ensure that assets are safeguarded, that transactions are executed in accordance with management’s authorization, and that financial information utilized by ~~management~~the General Partner and communicated to external parties, including the Partnership’s Redeemable Unit holders, creditors, and regulators, is free of material errors.

(g) Critical Accounting Policies.

Partnership’s ~~and~~Investments: ~~the~~The ~~Funds~~Partnership’s ~~Investments. All~~investments ~~commodity~~in ~~interests,~~the ~~including~~Funds ~~derivative~~are ~~financial instruments~~stated ~~and~~at ~~derivative~~fair ~~commodity instruments~~value, ~~through~~which are based on (1) the Partnership’s ~~investment~~net incontribution ~~other~~to ~~funds,~~each ~~are~~Fund ~~held~~and ~~for~~(2) ~~trading~~its ~~purposes.~~allocated ~~The~~share ~~commodity~~of ~~interests~~the ~~are~~undistributed ~~recorded~~profits ~~on trade date~~ and ~~open~~losses, ~~contracts~~including ~~are~~realized ~~recorded~~gains/losses atand ~~fair~~the ~~value~~change ~~(as~~in ~~described below)~~net atunrealized ~~the~~gains/losses, ~~measurement~~of ~~date~~each Fund. ~~Investments~~Accounting Standards inCodification ~~commodity~~(“ASC”) ~~interests~~820, ~~denominated~~“Fair inValue ~~foreign~~Measurement,” ~~currencies~~as ~~are~~amended, ~~translated~~permits, ~~into~~as ~~U.S. dollars~~a atpractical expedient, the ~~exchange~~Partnership ~~rates~~to ~~prevailing~~measure at the ~~measurement~~fair ~~date.~~value ~~Gains~~of orits ~~losses~~investments ~~are~~in ~~realized~~the ~~when~~Funds ~~contracts~~on ~~are~~the ~~liquidated.~~basis ~~Unrealized~~of ~~gains~~the ornet ~~losses~~asset onvalue ~~open~~per ~~contracts~~share ~~are~~(or ~~included~~its asequivalent) aif ~~component~~the ofnet ~~equity~~asset invalue ~~trading~~per ~~account~~share ~~on the Statements~~ of ~~Financial~~such ~~Condition.~~investments ~~Net~~is ~~realized~~calculated ~~gains~~in ora ~~losses~~manner ~~and~~consistent ~~any~~with ~~change~~the inmeasurement ~~net~~principles ~~unrealized~~of ~~gains~~ASC orTopic ~~losses~~946 ~~from~~“Financial ~~the~~Services ~~preceding~~– ~~period~~Investment ~~are~~Companies” ~~included~~as inof the ~~Statements~~Partnership’s ofreporting ~~Income and Expenses~~date.

~~Partnership’s and the~~ Funds’ ~~Fair Value~~ ~~Measurements~~Investments. ~~Fair~~ ~~value~~All iscommodity ~~defined~~interests asof the ~~price~~Funds, ~~that~~including ~~would~~derivative befinancial ~~received~~instruments toand ~~sell~~derivative ancommodity ~~asset~~instruments, orheld ~~paid~~by tothe ~~transfer~~Funds aare ~~liability~~held infor antrading ~~orderly~~purposes. ~~transaction~~The ~~between~~commodity ~~market~~interests ~~participants~~are atrecorded ~~the~~on ~~measurement~~trade date ~~under~~and ~~current~~open contracts ~~market~~are ~~conditions.~~recorded ~~The~~at fair value ~~hierarchy~~at ~~gives~~ the ~~highest~~measurement ~~priority~~date. toInvestments ~~unadjusted~~in ~~quoted~~commodity ~~prices~~interests denominated in ~~active~~foreign ~~markets~~currencies ~~for~~are ~~identical~~translated ~~assets~~into orU.S. ~~liabilities~~dollars ~~(Level 1) and~~at the ~~lowest~~exchange ~~priority~~rates toprevailing ~~fair~~at ~~values~~the ~~derived~~measurement ~~from unobservable inputs (Level 3)~~date. ~~The~~Gains ~~level~~or inlosses ~~the~~are ~~fair~~realized ~~value~~when ~~hierarchy~~contracts ~~within~~are ~~which~~liquidated ~~the~~and ~~fair~~are ~~value~~determined ~~measurement~~using the first-in, ~~its~~firstout ~~entirety~~method. ~~falls~~Unrealized ~~shall~~gains beor ~~determined~~losses ~~based~~ on ~~the~~open ~~lowest~~contracts ~~level~~are ~~input~~included ~~that~~as isa ~~significant~~component toof ~~the~~equity ~~fair~~in ~~value~~trading ~~measurement~~account in ~~its~~the ~~entirety~~Funds’ Statements of Financial Condition. ~~Management~~Net ~~has~~realized ~~concluded~~gains ~~that~~or ~~based~~losses ~~on available~~and ~~information~~net change in ~~the~~unrealized ~~marketplace,~~gains or losses are reported in the Funds’ ~~Level 1~~Statements ~~assets~~of Income and ~~liabilities are actively traded~~Expenses.

~~Accounting~~Funds’ ~~principles generally~~Fair ~~accepted~~Value inMeasurements. ~~the~~Fair ~~United~~value ~~States~~is ofdefined ~~America~~as ~~(“GAAP”)~~the ~~also~~price ~~require~~that ~~the~~would ~~use~~be ofreceived ~~judgment~~to insell ~~determining~~an ifasset or paid to transfer a liability ~~formerly~~in ~~active~~an orderly transaction between market ~~has~~participants ~~become~~at ~~inactive~~the ~~and~~measurement indate ~~determining~~under current market conditions. The fair ~~values~~value ~~when~~hierarchy gives the ~~market~~highest ~~has~~priority ~~become~~to ~~inactive.~~unadjusted ~~Management~~quoted ~~has~~prices in active markets for identical assets or ~~concluded~~liabilities ~~that~~(Level ~~based~~1) onand ~~available~~the ~~information~~lowest priority to fair values derived from unobservable inputs (Level 3). The level in the ~~marketplace,~~fair ~~there~~value ~~has~~hierarchy ~~not~~within ~~been~~which athe ~~significant~~fair ~~decrease~~value measurement in ~~the~~its ~~volume~~entirety ~~and~~falls shall be determined based on the lowest level ofinput ~~activity~~that inis significant to the ~~Partnership’s~~fair ~~Level 2~~value ~~assets~~measurement ~~and~~in ~~liabilities~~its entirety.

The ~~Partnership~~fair value of exchange-traded futures, option and forward ~~the~~contracts ~~Funds~~is ~~will~~determined ~~separately~~by ~~present~~the ~~purchases,~~various ~~sales~~exchanges, ~~issuances~~ and ~~settlements~~reflects inthe ~~their~~settlement ~~reconciliation~~price for each contract as of ~~Level 3~~the close of business on the last business day of the reporting period. The fair value ~~measurements~~of ~~(i.e.,~~foreign tocurrency ~~present~~forward ~~such~~contracts ~~items~~is extrapolated on a ~~gross~~forward basis ~~rather~~from ~~than~~the onspot aprices ~~net~~quoted ~~basis),~~as ~~and~~of ~~make~~approximately ~~disclosures~~3:00 ~~regarding~~P.M. (E.T.) on the ~~level~~last ofbusiness ~~disaggregation~~day ~~and~~of the ~~inputs~~reporting ~~and~~period ~~valuation~~from ~~techniques~~various ~~used~~exchanges. toThe ~~measure~~ fair value ~~for~~of ~~measurements~~non-exchange-traded ~~that~~foreign ~~fall~~currency option contracts is ~~within~~calculated ~~either~~by ~~Level 2~~applying oran ~~Level~~ 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 ~~fair~~reporting ~~value~~period. ~~hierarchy~~U.S. Treasury bills are valued at the last available bid price received from independent pricing services as ~~required~~of bythe ~~GAAP~~close of the last business day of the reporting period.

The ~~Partnership/~~Funds consider prices for exchange-traded commodity futures, forward, swap and option contracts to be based on unadjusted quoted prices in active markets for identical assets and liabilities (Level 1). The values of U.S. Treasury bills, non-exchange -traded forward, swap and certain option contracts for which market quotations are not readily available are priced by broker~~-dealers~~ quotes or pricing services that derive fair values for those assets and liabilities from observable inputs (Level ~~2).~~ Investments in funds (other commodity pools) where there are no other rights or obligations inherent within the ownership interest held by the Partnership are priced based on the end of the day net asset value (Level 2). ~~The value of the Partnership’s investments in the Funds reflects its proportional interest in the Funds.~~ As of and for the years ended December 31, ~~2014~~2015 and ~~2013~~2014, the Funds did not hold any derivative instruments ~~for which market quotations were not readily available and which were priced by broker-dealers who derive fair values for those assets from observable inputs (Level 2) or~~ that were priced at fair value using unobservable inputs through the application of ~~management~~the General Partner’s assumptions and internal valuation pricing models (Level 3). ~~During the years ended December 31, 2014 and 2013, there were no transfers of assets or liabilities between Level 1 and Level 2.~~

~~Futures~~Transfers ~~Contracts.~~between ~~The~~levels ~~Partnership/Funds~~are ~~trade~~recognized ~~futures contracts. A futures contract is a firm commitment to buy or sell a specified quantity of investments, currency or a standardized amount of a deliverable grade commodity,~~ at ~~a specified price on a specified future date, unless~~ the ~~contract~~end isof ~~closed before~~ the ~~delivery~~reporting ~~date or if the delivery quantity is something where physical delivery cannot occur (such as the S&P 500 Index), whereby such contract is settled in cash~~period. ~~Payments~~During ~~(“variation margin”) may be made or received by~~ the ~~Funds~~years ~~each~~ended ~~business~~December ~~day~~31, ~~depending on~~2015 ~~the daily fluctuations in the value of the underlying contracts,~~ and ~~are recorded as unrealized gains or losses by the Funds. When the contract is closed~~2014, ~~the~~there ~~Funds~~were ~~record a realized gain or loss equal to the difference between the value of the~~no ~~contract~~transfers ~~at the time it was opened and the value at the time it was closed. Transactions in futures contracts require participants to make both initial margin deposits~~ of ~~cash~~assets or ~~other~~liabilities ~~assets~~between ~~and~~Level ~~variation~~1 ~~margin deposits, through the futures broker, directly with the exchange on which the contracts are traded. Net realized gains (losses)~~ and ~~changes~~Level ~~in net unrealized gains (losses) on futures contracts are included in the Statements of Income and Expenses~~2.

~~Forward~~Futures ~~Foreign Currency~~ Contracts. ~~Forward~~The ~~foreign~~Funds ~~currency~~trade futures contracts. ~~are~~A ~~those~~futures ~~contracts~~contract ~~where~~is ~~the~~a ~~Funds~~firm ~~agree~~commitment to ~~receive~~buy or ~~deliver~~ sell a ~~fixed~~specified quantity of ~~foreign~~investments, currency ~~for~~or ana ~~agreed-upon~~standardized amount of a deliverable grade commodity, at a specified price on ana ~~agreed~~specified future date., ~~Forward~~unless ~~foreign~~the ~~currency~~contract ~~contracts~~is ~~are~~closed before ~~valued~~the ~~daily,~~delivery ~~and~~date or if the ~~Funds~~delivery ~~net~~quantity ~~equity~~is ~~therein~~something where physical delivery cannot occur (such as the S&P 500 Index), ~~representing~~whereby ~~unrealized~~such ~~gain~~contract is settled in cash. Payments (“variation margin”) may be made or ~~loss~~received by the Funds each business day, depending on the daily fluctuations in the value of the underlying contracts, and are recorded as ~~measured~~unrealized gains or losses by the ~~difference~~ ~~between~~Funds. When the ~~forward~~contract ~~foreign~~is ~~exchange~~closed, ~~rates~~the atFunds record a realized gain or loss equal to the difference ~~dates~~between the value of ~~entry~~the ~~into~~contract at the ~~contracts~~time it was opened and the ~~forward~~value ~~rates~~ at the ~~reporting~~time ~~date,~~it iswas ~~included~~closed. Transactions in ~~the~~futures ~~Statements~~contracts ofrequire ~~Financial~~participants ~~Condition.~~to ~~Net~~make ~~realized~~both ~~gains~~initial ~~(losses) and~~margin ~~changes~~deposits inof ~~net unrealized~~cash ~~gains~~or ~~(losses) on~~other ~~forward~~assets ~~foreign~~and ~~currency~~variation ~~contracts~~margin deposits, ~~are~~through ~~recognized~~the infutures broker, directly with the ~~period~~exchange inon which the ~~contract~~contracts isare ~~closed~~traded. orNet ~~the~~realized ~~changes~~gains ~~occur,~~(losses) ~~respectively,~~ and net change in unrealized gains (losses) on futures contracts are included in the Funds’ Statements of Income and Expenses.

~~The~~London ~~Funds~~Metals doExchange ~~not~~Forward ~~isolate~~Contracts. Metal contracts traded on the ~~portion~~London Metals Exchange (“LME”) represent a firm commitment to buy or sell a specified quantity of aluminum, copper, lead, nickel, tin or zinc. LME contracts traded by the ~~results~~Funds ofare ~~operations~~cash ~~arising~~settled ~~from~~based on prompt dates published by the ~~effect~~LME. ofPayments ~~changes~~(“variation margin”) may be made or received by the Funds each business day, depending on the daily fluctuations in ~~foreign~~the ~~exchange~~value ~~rates~~of the underlying contracts, and are recorded as unrealized gains or losses by the Funds. A contract is considered offset when all long positions have been matched with a like number of short positions settling on ~~investments~~the same prompt date. When the contract is closed at the prompt date, the Funds record a realized gain or loss equal to the difference between the value of the contract at ~~from~~the ~~fluctuations~~time ~~from~~it ~~changes~~was opened and the value at the time it was closed. Transactions in ~~market~~LME ~~prices~~contracts require participants to make both initial margin deposits of ~~investments~~cash ~~held~~or other assets and variation margin deposits, through the broker, directly with the LME. Net ~~Such~~realized ~~fluctuations~~gains ~~are~~(losses) ~~included~~and net change in ~~net~~unrealized ~~gain~~gains (~~loss~~losses) on ~~investments~~metal contracts are included in the Funds’ Statements of Income and Expenses.

~~London~~Options. ~~Metals~~The ~~Exchange~~Funds ~~Forward~~may ~~Contracts.~~purchase ~~Metal~~and ~~contracts~~write ~~traded~~(sell) onboth ~~the~~exchange-listed ~~London~~and ~~Metals~~OTC ~~Exchange~~options ~~(“LME”)~~on ~~represent~~commodities aor ~~firm commitment~~financial toinstruments. ~~buy~~An option oris ~~sell~~ a ~~specified~~contract ~~quantity~~allowing, ofbut ~~aluminum,~~not ~~copper~~requiring, ~~lead,~~its ~~nickel,~~holder ~~tin~~to buy (call) or ~~zinc.~~sell ~~LME~~(put) ~~contracts~~a ~~traded~~specific byor ~~the~~standard ~~Funds~~commodity ~~are~~or ~~cash~~financial ~~settled~~instrument ~~based~~at ona ~~prompt~~specified ~~dates~~price ~~published~~during bya ~~the~~specified ~~LME~~time period. ~~Payments~~The ~~(“variation~~option ~~margin”)~~premium ~~may~~is bethe ~~made~~total price paid or received byfor the ~~Funds~~option ~~each~~contract. ~~business~~When ~~day, depending on~~ the ~~daily~~Funds ~~fluctuations~~write inan ~~the~~option, ~~value of~~ the ~~underlying~~premium ~~contracts,~~received ~~and~~is ~~are~~ recorded as ~~unrealized~~a ~~gains~~liability orin ~~losses by~~ the Funds.’ AStatements ~~contract~~of isFinancial ~~considered~~Condition ~~offset~~and ~~when~~marked-to ~~all~~market ~~long~~daily. ~~positions~~When ~~have been matched with a like number of short positions settling on~~ the ~~same~~Funds ~~prompt~~purchase ~~date.~~an ~~When~~option, the ~~contract~~premium paid is recorded ~~closed~~as atan ~~the~~asset ~~prompt~~in ~~date,~~ the Funds’ ~~record~~Statements aof ~~realized~~Financial ~~gain~~Condition orand ~~loss equal~~ marked-to-market ~~the~~daily. ~~difference~~Net ~~between~~realized ~~the~~gains ~~value~~(losses) ofand ~~the~~net ~~contract~~change atin ~~the~~unrealized ~~time~~gains it(losses) ~~was opened~~on ~~and~~option ~~the~~contracts ~~value~~are atincluded in the ~~time~~Funds’ itStatements ~~was~~of ~~closed~~Income and Expenses. ~~Transactions~~The inFunds ~~LME~~do ~~contracts~~not ~~require~~isolate ~~participants~~the toportion ~~make~~of ~~both~~the ~~initial~~results ~~margin deposits~~ of ~~cash~~operations orarising ~~other~~from ~~assets~~the ~~and~~effect ~~variation~~of ~~margin~~changes ~~deposits,~~in ~~through~~foreign ~~the~~exchange ~~broker,~~rates ~~directly~~on ~~with~~investments ~~the~~from ~~LME.~~fluctuations ~~Net~~due ~~realized gains~~to ~~(losses) and~~ changes in ~~net~~market ~~unrealized~~prices ~~gains~~of ~~(losses) on~~investments ~~metal~~held. ~~contracts~~Such ~~are~~fluctuations are included in total trading results in the Funds’ Statements of Income and Expenses.

~~Options.~~As ~~The Funds may purchase and write (sell)~~ both ~~exchange~~a ~~listed~~buyer and ~~OTC~~seller of options, onthe ~~commodities or financial instruments. An~~Funds ~~option~~pay ~~is a contract allowing, but not requiring, its holder to buy (call)~~ or ~~sell~~receive ~~(put)~~ a ~~specific~~premium ~~or standard commodity or financial instrument~~ at athe ~~specified~~outset ~~price~~and ~~during~~then abear ~~specified~~the ~~time~~risk ~~period.~~of ~~The~~unfavorable ~~option~~changes ~~premium~~in is the ~~total~~ price ~~paid~~ orof ~~received for~~ the ~~option~~ contract. ~~When~~underlying the ~~Funds~~option. ~~write~~Written anoptions ~~option,~~expose the ~~premium~~Funds ~~received~~to ispotentially ~~recorded~~unlimited asliability; afor ~~liability~~purchased inoptions, the ~~Statements~~risk of ~~Financial~~loss ~~Condition~~is limited ~~and marked~~ to ~~market daily. When~~ the ~~Funds~~premiums ~~purchase~~paid. anCertain ~~option,~~written ~~the~~put ~~premium~~options ~~paid~~permit ~~is recorded~~cash assettlement anand ~~asset~~do innot require the ~~Statements~~option ofholder ~~Financial~~to ~~Condition~~own ~~and~~the ~~marked~~reference ~~to market daily~~asset. ~~Net~~The ~~realized~~Funds ~~gains~~do ~~(losses) and~~not ~~changes~~consider inthese ~~net unrealized gains (losses) on option~~ contracts ~~are~~to ~~included~~be ~~in the Statements of Income and Expenses~~guarantees.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Introduction

All of the Partnership’s assets are subject to the risk of trading loss through its investments in the Funds. The Funds are speculative commodity pools. The market sensitive instruments held by them are acquired for speculative trading purposes, and all or substantially all of the Funds’ assets are subject to the risk of trading loss. Unlike an operating company, the risk of market sensitive instruments is integral, not incidental, to the Funds’ main line of business.

The ~~limited~~Limited ~~partners~~Partners will not be liable for losses exceeding the current net asset value of their investment. This limited liability is a result of the organization of the Partnership as a limited partnership under Delaware law.

Market movements result in frequent changes in the fair market value of the Funds’ open positions and, consequently, in their earnings and cash balances. ~~The~~A ~~Funds~~Fund’s market ~~risk~~risks isare influenced by a wide variety of factors, including the level and volatility of interest rates, exchange rates, equity price levels, the value of financial instruments and contracts, the diversification effects of the ~~Funds~~Fund’s open positions and the liquidity of the markets in which ~~they~~it ~~trade~~trades.

The Funds rapidly acquire and liquidate both long and short positions in a wide range of different markets. Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Funds’ past performance is not necessarily indicative of their future results.

22“Value at Risk” is a measure of the maximum amount which the Funds could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Funds’ speculative trading and the recurrence in the markets traded by the Funds of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Funds’ 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 a Fund’s losses in any market sector will be limited to Value at Risk or by the Fund’s attempt to manage its market risk.

“Value at Risk” is a measure of the maximum amount which the Funds could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Funds’ speculative trading and the recurrence in the markets traded by the Funds of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Funds’ 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 Funds’ losses in any market sector will be limited to Value at Risk or by the Funds’ attempt to manage their market risk.

Materiality as used in this section, “Quantitative and Qualitative Disclosures About Market Risk,” is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into account the leverage, optionality and multiplier features of the Funds’ market sensitive instruments.

Quantifying the Partnership’s Trading Value at Risk

The following quantitative disclosures regarding the Partnership’s/Funds’ 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 and Section 21E of the Exchange Act). 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 (such as the terms of particular contracts and the number of market risk sensitive instruments held during or at the end of the reporting period).

The Funds’ risk exposure in the various market sectors traded by the Advisors is quantified below in terms of Value at Risk. Due to the Funds’ mark-to-market accounting, any loss in the fair value of the Funds’ open positions is directly reflected in the Partnership’s earnings (realized and unrealized) and cash balances. Exchange margin requirements have been used by the Funds as the measure of their Value at Risk. 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. The margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

In the case of market sensitive instruments which are not exchange-traded (almost exclusively currencies in the case of the Funds), the margin requirements for the equivalent futures positions have been used as Value at Risk. In those rare cases in which a futures-equivalent margin is not available, dealers’ margins have been used.

The fair value of the Funds’ futures and forward contracts does not have any optionality component. However, the Advisors may trade commodity options. The Value at Risk associated with options is reflected in the following tables as the margin requirement attributable to the instrument underlying each option. Where this instrument is a futures contract, the futures margin has been used, and where this instrument is a physical commodity, the futures-equivalent margin has been used. This calculation is conservative in that it assumes that the fair value of an option will decline by the same amount as the fair value of the underlying instrument, whereas, in fact, the fair values of the options traded by the Funds in almost all cases fluctuate to a lesser extent than those of the underlying instruments.

In quantifying the Partnership’s/Funds’ Value at Risk, 100% positive correlation in the different positions held in each market risk category has been assumed. Consequently, the margin requirements applicable to the open contracts have simply been added to determine each trading category’s aggregate Value at Risk. The diversification effects resulting from the fact that the Funds’ positions are rarely, if ever, 100% positively correlated have not been reflected.

The Partnership’s Trading Value at Risk in Different Market Sectors

Value at Risk tables represent a probabilistic assessment of the risk of loss in market risk sensitive instruments. The Advisors currently trade the Partnership’s assets indirectly in master fund managed accounts established in the name of the master funds over which they have been granted limited authority to make trading decisions. The first two trading Value at Risk tables reflect the market sensitive instruments held by the Partnership indirectly, through its investment in the Funds. The remaining trading Value at Risk tables reflect the market sensitive instruments held by each Fund separately.

~~The~~27 following tables indicate the trading Value at Risk associated with the Partnership’s open positions by market category as of December 31, 2014 and 2013. As of December 31, 2014, the Partnership’s total capitalization was $18,035,434.

The following tables indicate the trading Value at Risk associated with the Partnership’s open positions by market category as of December 31, 2015 and 2014. As of December 31, 2015, the Partnership’s total capitalization was $11,926,129.

December 31, 2015


Market Sector	Value at Risk		% of Total Capitalization
Energy	$	52,278		0.44	%
Grains		83,463		0.70
Livestock		123,335		1.03
Softs		39,378		0.33

Total	$	298,454		2.50	%

As of December 31, 2014, the Partnership’s total capitalization was $18,035,434.

December 31, 2014

Market Sector	Value at Risk		% of TotalCapitalization
Energy	$	471,657		2.62	%
Grains		164,002		0.91	%
Livestock		317,901		1.76	%
Softs		89,946		0.50	%
Total	$	1,043,506		5.79	%
As of December 31, 2013, the Partnership’s total capitalization was $27,665,769.
December 31, 2013
Market Sector	Value at Risk		% of TotalCapitalization
Energy	$	574,254		2.07	%
Grains		406,954		1.47	%
Livestock		261,835		0.95	%
Metals		283,623		1.03	%
Softs		96,152		0.35	%
Total	$	1,622,818		5.87	%

The following tables indicate the trading Value at Risk associated with the Partnership’s investment in the Funds by market category as of December 31, ~~2014~~2015 and ~~2013~~2014, and the highest, lowest and average value at any point during the years. All open position trading risk exposures have been included in calculating the figures set forth below.

As of December 31, 2015, MB Master’s total capitalization was $159,372,646. The Partnership owned approximately 5.4% of MB Master. As of December 31, 2015, MB Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Aventis for trading) was as follows:

December 31, 2015



Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Energy	$	604,203		0.38	%	$	6,373,658	$	85,608	$	3,088,794
Grains		719,382		0.45			6,945,244		101,193		2,873,016
Livestock		142,560		0.09			2,777,359		10,005		361,832
Softs		371,327		0.23			2,986,688		336,168		1,723,568

Total	$	1,837,472		1.15	%

*	Annual average of month-end Values at Risk.

As of December 31, 2014, MB Master’s total capitalization was $228,148,871. The Partnership owned approximately 3.6% of MB Master. As of December 31, 2014, MB Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Aventis for trading) was as follows:

December 31, 2014

Market Sector	Value at Risk		% of TotalCapitalization			HighValue at Risk		LowValue at Risk		AverageValue at Risk*
Energy	$	4,621,316		2.02	%	$	19,263,186	$	1,167,065	$	7,264,460
Grains		4,007,623		1.76	%		12,658,692		227,189		5,511,816
Livestock		2,120,485		0.93	%		2,385,459		214		519,782
Softs		1,518,859		0.67	%		3,591,096		1,297,496		2,081,253
Total	$	12,268,283		5.38	%

* Annual average of month-end Values at Risk.

23As of December 31, 2015, JEM Master’s total capitalization was $11,125,506. The Partnership owned approximately 39.0% of JEM Master. As of December 31, 2015, JEM Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to JE Moody for trading) was as follows:

~~As of~~ December 31, ~~2013,~~2015 MB Master’s total capitalization was $311,830,637. The Partnership owned approximately 3.6% of MB Master. As of December 31, 2013, MB Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Aventis for trading) was as follows:

December 31, 2013


Market Sector	Value at Risk		% of Total Capitalization			High Value at Risk		Low Value at Risk		Average Value at Risk*
Energy	$	50,386		0.45	%	$	3,600,762	$	30,861	$	638,968
Grains		114,400		1.03			312,510		7,700		117,038
Livestock		296,505		2.66			884,015		20,790		395,455
Softs		49,555		0.45			200,695		3,300		87,216

Total	$	510,846		4.59	%

Market Sector	Value at Risk		% of TotalCapitalization			HighValue at Risk		LowValue at Risk		Average*Value at Risk
Energy	$	2,107,890		0.68	%	$	5,376,667	$	31,064	$	2,306,186
Grains		8,052,314		2.58	%		28,467,091		1,828,318		16,119,089
Livestock		2,105,527		0.67	%		2,561,898		4,071		1,622,197
Metals		432,274		0.14	%		484,988		58,973		65,658
Softs		1,754,855		0.56	%		3,779,458		115,103		2,393,541
Total	$	14,452,860		4.63	%

* Annual average of month-end Values at Risk.

As of December 31, 2014, Krom River no longer trades the Partnership’s assets, as the Partnership has fully redeemed its investment in KR Master as of that date. As of December 31, 2013, KR Master’s total capitalization was $42,587,060. The Partnership owned approximately 11.8% of KR Master. As of December 31, 2013, KR Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to Krom River for trading) was as follows:

December 31, 2013

Market Sector	Value at Risk		% of TotalCapitalization			HighValue at Risk		LowValue at Risk		AverageValue at Risk*
Energy	$	278,432		0.65	%	$	1,380,251	$	278,432	$	690,943
Grains		288,241		0.68	%		1,297,380		1,487		404,464
Livestock		75,063		0.18	%		803,000		9,905		93,680
Metals		2,271,706		5.33	%		5,810,837		456,425		2,867,697
Total	$	2,913,442		6.84	%

* Annual average of month-end Values at Risk.

As of December 31, 2014, JEM Master’s total capitalization was $29,876,004. The Partnership owned approximately 29.4% of JEM Master. As of December 31, 2014, JEM Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to JE Moody for trading) was as follows:

December 31, 2014

Market Sector	Value at Risk		% of TotalCapitalization			HighValue at Risk		LowValue at Risk		~~Average~~AverageValue Value at Risk
Energy	$	1,038,399		3.48	%	$	4,200,379	$	638,660	$	1,707,162
Grains		67,100		0.22	%		631,126		6,008		120,137
Livestock		821,645		2.75	%		1,089,315		24,750		336,630
Softs		119,955		0.40	%		267,465		4,290		65,936
Total	$	2,047,099		6.85	%

* Annual average of month-end Values at Risk.

As29 of December 31, 2013, JEM Master’s total capitalization was $44,476,720. The Partnership owned approximately 30.1% of JEM Master. As of December 31, 2013, JEM Master’s Value at Risk for its assets (including the portion of the Partnership’s assets allocated to JE Moody for trading) was as follows:

December 31, 2013

Market Sector	Value at Risk		% of TotalCapitalization			HighValue at Risk		LowValue at Risk		AverageValue at Risk*
Energy	$	1,546,563		3.48	%	$	3,347,583	$	1,298,733	$	1,815,100
Grains		275,940		0.62	%		606,150		196,290		397,605
Livestock		588,634		1.32	%		1,130,423		304,526		788,235
Softs		109,560		0.25	%		206,085		11,495		154,107
Total	$	2,520,697		5.67	%

* Annual average of month-end Values at Risk.

Material Limitations on Value at Risk as an Assessment of Market Risk

The face value of the market sector instruments held by the Funds are typically many times the applicable ~~maintenance~~ margin requirement (margin requirements generally range between 1% and 15% of contract face value, although an exchange may increase margin requirements on short notice) as well as many times the capitalization of the Funds. The magnitude of the Funds’ open positions creates a “risk of ruin” not typically found in most other investment vehicles. Because of the size of its positions, certain market conditions — unusual, but historically recurring from time to time — could cause the Funds to incur severe losses over a short period of time. The foregoing Value at Risk tables — as well as the past performance of the Funds — give no indication of this “risk of ruin.”

Non-Trading Risk

The Funds have non-trading market risk on their foreign cash balances not needed for margin. However, these balances (as well as any market risk that they represent) are immaterial.

Materiality as used in this section, “Quantitative and Quantitative Disclosures About Market Risk,” is based on an assessment of reasonably possible market movements and the potential losses caused by such movements, taking into account the leverage, optionality and multiplier features of the Funds’ market-sensitive instruments.

Qualitative Disclosures Regarding Primary Trading Risk Exposures

The following qualitative disclosures regarding the Funds’ market risk exposures —- except for (i) those disclosures that are ~~statements~~ statements of historical fact and (ii) the descriptions of how the Funds manage their primary market risk exposures — constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The Funds’ primary market risk exposures as well as the strategies used and to be used by the General Partner and the Advisors for managing such exposures are subject to numerous uncertainties, contingencies and risks, any one of which could cause the actual results of the Funds’ 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 regulation and many other factors could result in material losses as well as in material changes to the risk exposures and the ~~management~~ management strategies of the Funds. There can be no assurance that the Funds’ current market exposure and/or risk management strategies will not change materially or that any such strategies will be effective in either the short or long term. ~~Investors~~ Investors must be prepared to lose all or substantially all of their investment in the Partnership.

The following were the primary trading risk exposures of the Partnership/Funds as of December 31, ~~2014~~2015 by market sector:

Metals. The Funds’ primary metal market exposure is subject to fluctuations in the price of gold, silver, copper and aluminum.

Softs. The Funds’ primary commodities exposure is subject to agricultural price movements which are often directly affected by severe or unexpected weather conditions. The Funds’ primary commodities exposures include cocoa, coffee, sugar and cotton.

Energy. The Funds’ primary energy market exposure is subject to natural gas and oil price movements, often resulting from political developments in the Middle East. Oil prices can be volatile and substantial profits and losses have been and are expected to continue to be experienced in this market.

Grains. The Funds’ primary commodities exposure is subject to agricultural price movements which are often directly affected by severe and unexpected weather conditions.

Livestock. Live cattle and lean hog accounted for the bulk of the Funds’ commodities exposure.

Qualitative Disclosures Regarding Non-Trading Risk Exposure

The following was the only non-trading risk exposure of the Funds as of December 31, ~~2014~~2015.

Foreign Currency Balances. The Funds’ primary foreign currency balances are in Japanese yen, Euro, British pounds and Australian dollars. The Advisors regularly convert foreign currency balances to U.S dollars in an attempt to control the Funds’ non-trading risk.

Qualitative Disclosures Regarding Means of Managing Risk Exposure

The General Partner monitors and attempts to control the Funds’ 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 Funds may be subject.

The General Partner monitors the Funds’ performance and the concentration of open positions, and consults with the Advisors concerning the Funds’ overall risk profile. If the General Partner felt it necessary to do so, the General Partner could require the Advisors to close out positions as well as enter positions traded on behalf of the Funds. However, any such intervention would be a highly unusual event. The General Partner primarily relies on the Advisors’ own risk control policies while maintaining a general supervisory overview of the Funds’ market risk exposures.

The Advisors apply their own risk management policies to their trading. The Advisors often follow diversification guidelines, margin limits and stop loss points to exit a position. The Advisors’ research of risk management often suggests ongoing modifications to their trading programs.

As part of the General Partner’s risk management, the General Partner periodically meets with the Advisors to discuss their risk management and to look for any material changes to the Advisors’ portfolio balance and trading techniques. Each Advisor is required to notify the General Partner of any material changes to their programs.

2531

Item 8. Financial Statements and Supplementary Data.

~~Commodity~~The ~~Advisors~~following ~~Fund~~financial Lstatements and related items of the Partnership are filed under this Item 8: Oath or Affirmation, Management’s Report on Internal Control over Financial Reporting, Report of Independent Registered Public Accounting Firm, for the years ended December 31, 2015, 2014 and 2013; Statements of Financial Condition at December 31, 2015 and 2014; Schedules of Investments at December 31, 2015 and 2014; Statements of Income and Expenses for the years ended December 31, 2015, 2014 and 2013; Statements of Changes in Partners’ Capital for the years ended December 31, 2015, 2014 and 2013; and Notes to Financial Statements.P Additional financial information has been filed as Exhibits to this Form 10-K.

~~The~~32 following financial statements and related items of the Partnership are filed under this Item 8: Oath or Affirmation, Management’s Report on Internal Control over Financial Reporting, Report of Independent Registered Public Accounting Firm, for the years ended December 31, 2014, 2013 and 2012; Statements of Financial Condition at December 31, 2014 and 2013; Schedules of Investments at December 31, 2014 and 2013; Statements of Income and Expenses for the years ended December 31, 2014, 2013 and 2012; Statements of Changes in Partners’ Capital for the years ended December 31, 2014, 2013 and 2012; and Notes to Financial Statements. Additional financial information has been filed as Exhibits to this Form 10-K.

To the Limited Partners of

Commodity Advisors Fund L.P.

To the best of the knowledge and belief of the undersigned, the information contained herein is accurate and complete.



By:		Patrick T. Egan President and Director Ceres Managed Futures LLC General Partner, Commodity Advisors Fund L.P.

Ceres Managed Futures LLC 522 Fifth Avenue New York, NY 10036 (855) 672-4468

2733

Management’s Report on Internal Control over

Financial Reporting

The management of Commodity Advisors Fund L.P. (the “Partnership”), Ceres Managed Futures LLC, is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a — 15(f) and 15d — 15(f) under the Securities Exchange Act of 1934 and for our assessment of internal control over financial reporting. The Partnership’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. The Partnership’s internal control over financial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Partnership are being made only in accordance with authorizations of management and directors of the Partnership; and

(iii) provide reasonable assurance regarding prevention or timely detection and correction of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The management of Commodity Advisors Fund L.P. has assessed the effectiveness of the Partnership’s internal control over financial reporting as of December 31, ~~2014~~2015. In making this assessment, management used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, management concluded that the Partnership maintained effective internal control over financial reporting as of December 31, ~~2014~~2015 based on the criteria referred to above.

Patrick T. Egan Steven Ross President and Director Chief Financial Officer and Director Ceres Managed Futures LLC Ceres Managed Futures LLC General Partner, General Partner, Commodity Advisors Fund L.P. Commodity Advisors Fund L.P.

2834

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of

Commodity Advisors Fund L.P.:

We have audited the accompanying statements of financial condition of Commodity Advisors Fund L.P. (the “Partnership”), including the schedules of investments, as of December 31, ~~2014~~2015 and ~~2013~~2014, and the related statements of income and expenses and changes in partners’ capital for each of the three years in the period ended December 31, ~~2014~~2015. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of Commodity Advisors Fund L.P. as of December 31, ~~2014~~2015 and ~~2013~~2014, and the results of its operations and changes in its partners’ capital for each of the ~~three~~ three years in the period ended December 31, ~~2014~~2015, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP New York, New York March 2524, ~~2015~~2016

2935

Commodity Advisors Fund L.P.

Statements of Financial Condition

December 31, ~~2014~~2015 and ~~2013~~2014

	December 31, 2014		December 31, 2013
	December 31, 2015		December 31, 2014
Assets:
Assets
Investment in Funds, at fair value (cost $15,495,382 and $27,336,385 at December 31, 2014 and 2013, respectively)	$	17,065,168	$	29,461,787
Investment in Funds, at fair value (cost $12,436,110 and $15,495,382 at December 31, 2015 and 2014, respectively) (Note 6)	$	12,973,939	$	17,065,168
Redemptions receivable from Funds		~~1,342,427~~—		—1,342,427
Interest Receivable (Note 4d)		110		323
Interest Receivable (Note 3c)		657		110
Cash (Note 4d)		113,260		116,377
Cash (Note 3c)		86,302		113,260
Total assets	$	1813,~~520~~060,~~965~~898	$	2918,~~578~~520,~~487~~965
Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Ongoing selling agent fees (Note 4c)	$	30,028	$	48,238
Ongoing selling agent fees (Note 3c)	$	21,170	$	30,028
Management fees (Note 4a and 4b)		24,374		40,322
Management fees (Note 3b)		16,210		24,374
Administrative fees (Note 4a)		15,330		24,562
General Partner fees (Note 3a)		10,798		15,330
Incentive fees (Note 4a and 4b)		—		26,225
Professional fees		103,655		125,311
Professional Fees		52,189		64,986
Redemptions payable to Limited Partners (Note 7)		982,936		290,488
Other		73,122		39,236
Total liabilities		1,134,769		485,531
Redemptions payable		290,488		1,669,149
Total liabilities		485,531		1,912,718
Partners’ Capital:
General Partner, Class A, 0.0000 unit equivalents outstanding at December 31, 2014 and 2013		—		—
General Partner, Class A, 0.0000 Redeemable Units outstanding at December 31, 2015 and 2014		—		—
General Partner, Class Z, 241.1440 and 353.4080 unit equivalents outstanding at December 31, 2014 and 2013, respectively		214,588		333,313
General Partner, Class Z, 192.1480 and 241.1440 Redeemable Units outstanding at December 31, 2015 and 2014, respectively		160,960		214,588
Limited Partners, Class A, 13,562.5398 and 19,230.1268 Redeemable Units outstanding at December 31, 2014 and 2013, respectively		17,698,651		27,135,591
Limited Partners, Class A, 9,693.5638 and 13,562.5398 Redeemable Units outstanding at December 31, 2015 and 2014, respectively		11,671,339		17,698,651
Limited Partners, Class Z, 137.3169 and 208.7339 Redeemable Units outstanding at December 31, 2014 and 2013, respectively		122,195		196,865
Limited Partners, Class Z, 112.0109 and 137.3169 Redeemable Units outstanding at December 31, 2015 and 2014, respectively		93,830		122,195
Total partners’ capital		1811,~~035~~926,~~434~~129		2718,~~665~~035,~~769~~434
Total liabilities and partners’ capital	$	1813,~~520~~060,~~965~~898	$	2918,~~578~~520,~~487~~965
Class A, net asset value per Redeemable Unit	$	1,~~304~~204.9703	$	1,~~411~~304.1097
Class Z, net asset value per Redeemable Unit	$	~~889~~837.8769	$	~~943~~889.1487

See accompanying notes to financial statements.

3036

Commodity Advisors Fund L.P.

Schedule of Investments

December 31, ~~2014~~2015

Investment in Funds	Cost		Fair ~~Value~~value		% of Partners’Capital
MB Master Fund L.P.	$	78,~~944~~833,~~768~~760	$	8,~~268~~632,~~092~~747		4572.8439	%
JEM Master Fund L.P.		73,~~550~~602,~~614~~350		84,~~797~~341,~~076~~192		4836.7840
Total investment in Funds, at fair value	$	15,495,382	$	17,065,168		94.62	%
Total investment in Funds	$	12,436,110	$	12,973,939		108.79	%

See accompanying notes to financial statements.

3137

Commodity Advisors Fund L.P.

Schedule of Investments

December 31, ~~2013~~2014

Investment in Funds	Cost		Fair ~~Value~~value		% of Partners’Capital
MB Master Fund L.P.	$	107,~~520~~944,~~279~~768	$	118,~~037~~268,~~122~~092		3945.8984	%
KR Master Fund L.P.		5,893,127		5,032,058		18.19
JEM Master Fund L.P.		7,550,614		8,797,076		48.78
JEM Master Fund L.P.		10,922,979		13,392,607		48.41
Total investment in Funds	$	15,495,382	$	17,065,168		94.62	%
Total investment in Funds, at fair value	$	27,336,385	$	29,461,787		106.49	%

See accompanying notes to financial statements.

3238

Commodity Advisors Fund L.P.

Statements of Income and Expenses

for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

	2014			2013			2012
	2015			2014			2013
Investment Income:
Interest income from investment in Funds (Note 4d)	$	4,189		$	11,844		$	26,446
Interest income (Note 3c)	$	1,919		$	4,189		$	11,844
Expenses:
Ongoing selling agent fees (Note 4c)		417,084			621,911			680,883
Ongoing selling agent fees (Note 3c)		318,457			417,084			621,911
Management fees (Note 4a and 4b)		348,740			573,233			797,203
Management fees (Note 3b)		252,125			348,740			573,233
Administrative fees (Note 4a)		213,165			321,493			439,898
General Partner fees (Note 3a)		162,032			213,165			321,493
Incentive fees (Note 4a and 4b)		—			204,558			157,652
Incentive fees (Note 3b)		—			—			204,558
Professional fees		~~195~~247,~~331~~739			~~274~~279,~~661~~762			~~339~~387,~~786~~982
Other		84,431			113,321			140,243
Total expenses		980,353			1,258,751			2,109,177
Total expenses		1,258,751			2,109,177			2,555,665
Net investment income (loss)		(978,434	)		(1,254,562	)		(2,097,333	)
Net investment income (loss)		(1,254,562	)		(2,097,333	)		(2,529,219	)
Trading Results:
Net realized gains (losses) on investment in Funds		(126,930	)		200,775			(583,157	)
Net gains (losses) on investment in Funds:
Change in net unrealized gains (losses) on investment in Funds		(555,616	)		930,037			994,945
Net realized gains (losses) on investment in Funds		820,282			(126,930	)		200,775
Total trading results		(682,546	)		1,130,812			411,788
Net change in unrealized gains (losses) on investment in Funds		(1,031,957	)		(555,616	)		930,037
Net income (loss)	$	(1,937,108	)	$	(966,521	)	$	(2,117,431	)
Total trading results		(211,675	)		(682,546	)		1,130,812
Net income (loss)	$	(1,190,109	)	$	(1,937,108	)	$	(966,521	)
Net income (loss) allocation by class:
Class A	$	(1,~~907~~176,~~259~~908	)	$	(~~927~~1,~~883~~907,259	)	$	(1927,~~775,146~~883	)
Class Z	$	(2913,~~849~~201	)	$	(3829,~~638~~849	)	$	(~~342~~38,~~285~~638	)
Net income (loss) per Redeemable Unit (Note 8)*
Class A	$	(~~106~~100.1394	)	$	(41106.5113	)	$	(7641.8351	)
Class Z	$	(5352.2718	)	$	(853.4327	)	$	(308.3943	)
Weighted average units outstanding
Weighted average Redeemable Units outstanding
Class A		1512,~~668~~360.~~4988~~7009			2115,~~821~~668.~~2806~~4988			2221,~~831~~821.~~6558~~2806
Class Z		~~516~~316.~~2816~~9287			~~1,116~~516.~~8919~~2816			101,~~259~~116.~~7243~~8919

* ~~Based~~Represents onthe change in net asset value per ~~unit~~Redeemable Unit.

See accompanying notes to financial statements.

3339

Commodity Advisors Fund L.P.

Statements of Changes in Partners’ Capital

for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

	Class A						Class Z						Total
	Amount			Redeemable Units			Amount			Redeemable Units			Amount			Redeemable Units
Partners’ Capital December 31, 2011	$	27,281,062			17,837.2840		$	15,266,194			15,546.6349		$	42,547,256			33,383.9189
Partners’ Capital, December 31, 2012	$	32,971,770			22,698.2288		$	2,169,677			2,280.1419		$	35,141,447			24,978.3707
Subscriptions – Limited Partners		14,178,378			9,407.1618			179,256			183.4279			14,357,634			9,590.5897
Net Loss		(1,775,146	)		—			(342,285	)		—			(2,117,431	)		—
Redemptions – General Partner		—			—			(12,911,724	)		(13,427.3899	)		(12,911,724	)		(13,427.3899	)
Redemptions – Limited Partners		(6,712,524	)		(4,546.2170	)		(21,764	)		(22.5310	)		(6,734,288	)		(4,568.7480	)
Partners’ Capital December 31, 2012		32,971,770			22,698.2288			2,169,677			2,280.1419			35,141,447			24,978.3707
Subscriptions – Limited Partners		5,592,487			3,932.0890			—			—			5,592,487			3,932.0890
Net Loss		(927,883	)		—			(38,638	)		—			(966,521	)		—
Net income (loss)		(927,883	)		—			(38,638	)		—			(966,521	)		—
Redemptions – General Partner		—			—			(1,600,861	)		(1,718.0000	)		(1,600,861	)		(1,718.0000	)
Redemptions – Limited Partners		(10,500,783	)		(7,400.1910	)		—			—			(10,500,783	)		(7,400.1910	)
Partners’ Capital December 31, 2013		27,135,591			19,230.1268			530,178			562.1419			27,665,769			19,792.2687
Partners’ Capital, December 31, 2013		27,135,591			19,230.1268			530,178			562.1419			27,665,769			19,792.2687
Subscriptions – Limited Partners		3,723,628			2,791.0570			—			—			3,723,628			2,791.0570
Net Loss		(1,907,259	)		—			(29,849	)		—			(1,937,108	)		—
Net income (loss)		(1,907,259	)		—			(29,849	)		—			(1,937,108	)		—
Redemptions – General Partner		—			—			(99,977	)		(112.2640	)		(99,977	)		(112.2640	)
Redemptions – Limited Partners		(11,253,309	)		(8,458.6440	)		(63,569	)		(71.4170	)		(11,316,878	)		(8,530.0610	)
Partners’ Capital December 31, 2014	$	17,698,651			13,562.5398		$	336,783			378.4609		$	18,035,434			13,941.0007
Partners’ Capital, December 31, 2014		17,698,651			13,562.5398			336,783			378.4609			18,035,434			13,941.0007
Net asset value per unit:
Subscriptions – Limited Partners		565,997			426.8410			—			—			565,997			426.8410
2012: Class A	$	1,452.61
Net income (loss)		(1,176,908	)		—			(13,201	)		—			(1,190,109	)		—
Class Z	$	951.57
Redemptions – General Partner		—			—			(44,768	)		(48.9960	)		(44,768	)		(48.9960	)
Redemptions – Limited Partners		(5,416,401	)		(4,295.8170	)		(24,024	)		(25.3060	)		(5,440,425	)		(4,321.1230	)
Partners’ Capital, December 31, 2015	$	11,671,339			9,693.5638		$	254,790			304.1589		$	11,926,129			9,997.7227
Net asset value per Redeemable Unit:
2013: Class A	$	1,411.10
Class Z	$	943.14
2014: Class A	$	1,304.97
Class Z	$	889.87
2015: Class A	$	1,204.03
Class Z	$	837.69

See accompanying notes to financial statements.

3440

Commodity Advisors Fund L.P.

Notes to Financial Statements

December 31, 2014

1. Partnership Organization

Commodity Advisors Fund L.P. (formerly, known as Energy Advisors Portfolio L.P.) (the “Partnership”) is a ~~Delaware~~ limited partnership ~~that operates~~which aswas aorganized ~~private~~on ~~investment~~January 30, ~~fund.~~2006, ~~The~~under ~~Partnership~~the ~~was~~limited ~~formed~~partnership onlaws ~~January~~of ~~30,~~the ~~2006~~State of Delaware. The Partnership commenced trading on October 1, 2006. ~~Between~~The ~~October~~Partnership 1,privately ~~2006~~ and ~~May~~continuously 1,offers ~~2011,~~redeemable ~~the~~units ~~Partnership~~of limited ~~was~~partnership ~~traded~~interest ~~pursuant~~(“Redeemable Units”) to aqualified 4investors.~~13(a)(4)~~ ~~exemption~~There is no maximum number of Redeemable Units that may be sold by the Partnership. The Partnership aims to achieve capital appreciation through speculative trading, directly and indirectly, in U.S. and international markets for currencies, interest rates, stock indices, agricultural and energy products and precious and base metals. The Partnership may ~~engage~~employ futures, ~~directly~~options oron ~~indirectly,~~futures inand ~~the~~forward ~~speculative~~contracts ~~trading~~in those ofmarkets. aThe ~~diversified~~Partnership ~~portfolio~~may ofalso ~~commodity~~engage ~~interests~~in ~~including futures~~spot, ~~option,~~ swap and ~~forward~~other ~~contracts~~derivative transactions with the approval of the General Partner (defined below). The commodity interests that are traded by the Partnership, through its investment in the Funds (as defined in Note 6, “Investment in Funds”), are volatile and involve a high degree of market risk. The ~~Partnership~~General ~~privately~~Partner ~~and~~may ~~continuously~~also ~~offers~~determine ~~redeemable~~to ~~units~~invest ofup ~~limited~~to ~~partnership~~all ~~interest (“Redeemable~~of ~~Units”)~~the toPartnership’s ~~qualified~~assets ~~investors~~in U.S. ~~There~~Treasury isbills noand/or ~~maximum~~money ~~number~~market mutual offunds, ~~Redeemable~~including ~~Units~~money ~~that~~market ~~may~~mutual befunds ~~sold~~managed by ~~the~~Morgan ~~Partnership~~Stanley or its affiliates.

Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner (the “General Partner”) and commodity pool operator of the Partnership. The General Partner is wholly owned by Morgan Stanley Smith Barney Holdings LLC (“MSSB Holdings”). MSSB Holdings is ultimately owned by Morgan Stanley. Morgan Stanley is a publicly held company whose shares are listed on the New York Stock Exchange. Morgan Stanley is engaged in various financial services and other businesses. Prior to June 28, 2013, Morgan Stanley indirectly owned a majority equity interest in MSSB Holdings, and Citigroup Inc. indirectly owned a minority equity interest in MSSB Holdings. Prior to July 31, 2009, the date as of which MSSB Holdings became its owner, the General Partner was wholly owned by Citigroup Financial Products Inc., a wholly owned subsidiary of Citigroup Global Markets Holdings Inc., the sole owner of which is Citigroup Inc. During the year ended December 31, 2014, the Partnership’s/Funds’ commodity broker was Morgan Stanley & Co. LLC (“MS&Co.”), a registered futures commission merchant. During prior periods included in this report, Citigroup Global Markets Inc. (“CGM”) also served as a commodity broker.

OnDuring ~~May 1, 2011,~~ the ~~Partnership~~years ~~began~~ended ~~offering~~December ~~“Class A” Redeemable Units~~31, ~~“Class~~2015 ~~D” Redeemable Units~~ and ~~“Class Z”~~2014, ~~Redeemable Units pursuant to~~ the ~~offering~~Partnership’s/Funds’ ~~memorandum.~~commodity ~~All~~broker ~~Redeemable~~was ~~Units~~Morgan ~~issued~~Stanley ~~prior~~& ~~to May 1, 2011 were deemed Class A Redeemable Units~~Co. ~~The rights, liabilities, risks and fees associated with investment in the Class A Redeemable Units~~LLC ~~did not change~~(“MS&Co.”), ~~Class~~a Zregistered ~~Redeemable~~futures ~~Units~~commission ~~were first issued on October 1, 2011~~merchant. AsDuring ofa ~~December~~prior ~~31,~~period ~~2014,~~included ~~there were no Redeemable Units outstanding~~ in ~~Class~~this ~~D. Class A~~report, ~~Class~~Citigroup DGlobal ~~and~~Markets ~~Class Z will each be referred to as a “Class” and collectively referred to as the “Classes~~Inc.” ~~The Class of Redeemable Units that a limited partner~~ (~~each, a~~ “~~Limited Partner~~CGM”) ~~receives~~also ~~upon~~served aas ~~subscription will generally depend upon the amount invested in the Partnership or the status of the Limited Partner, although the General Partner may determine to offer~~ a ~~particular~~commodity ~~Class of Redeemable Units to investors at its discretion~~broker. ~~Class Z Redeemable Units are offered to certain employees of Morgan Stanley and its subsidiaries (and their family members).~~

~~The~~All ~~General~~trading ~~Partner~~decisions ~~and~~are made for the Partnership by its trading advisors (each ~~Limited~~an ~~Partner~~“Advisor”, ~~share~~and incollectively, the “Advisors”). ~~profits~~As of December 31, 2015, JE Moody & Company LLC (“JE Moody”) and ~~losses~~Aventis Asset Management, LLC (formerly known as Misfit Financial Group, LLC) (“Aventis”) served as the major commodity trading advisors to the Partnership. In addition, the General Partner may allocate the Partnership’s assets to additional non-major trading advisors (i.e., commodity trading advisors allocated less than 10% of the Partnership’s assets). inInformation ~~proportion~~about toadvisors that are allocated less than 10% of the ~~amount~~Partnership’s assets may not be disclosed. The General Partner may allocate less than 10% of ~~partnership~~the ~~interest~~Partnership’s ~~owned~~assets byto ~~each~~a ~~except~~new ~~that~~trading noadvisor ~~Limited~~or another trading program of a current Advisor at any time. The Advisors are not affiliated with one another, are not affiliated with the General Partner, ~~shall~~MS&Co. beor ~~liable~~CGM and are not responsible for ~~obligations~~the organization or operation of the Partnership. The General Partner will generally allocate the assets of the Partnership to “established” trading advisors (i.e., advisors with established trading strategies), but may also allocate assets to “emerging” trading advisors (i.e., trading advisors in ~~excess~~the process of developing and refining their ~~initial~~trading ~~capital~~strategies). ~~contribution~~The General Partner has selected and ~~profits,~~will ifselect ~~any,~~commodity ~~net~~trading advisors for the Partnership that it believes possess the potential to be successful traders. The Advisors have various levels of ~~distributions~~experience in speculatively trading commodity interests and ~~losses~~have various levels of experience in managing client funds. References herein to the “Advisors” may also include, as relevant, reference to Cirrus Capital Management LLC if(“Cirrus”) ~~any~~and Krom River Investment Management (Cayman) Limited and Krom River Trading A.G. (collectively, “Krom River”).

~~The~~41 affairs of the Partnership will be wound up and the Partnership liquidated as soon as practicable upon the first to occur of the following: (i) the vote to dissolve the Partnership by Limited Partners owning more than 50% of all Classes of Redeemable Units then outstanding; notice of which

Commodity Advisors Fund L.P.

Notes to Financial Statements

On May 1, 2011, the Partnership began offering “Class A” Redeemable Units, “Class D” Redeemable Units and “Class Z” Redeemable Units pursuant to the offering memorandum. All Redeemable Units issued prior to May 1, 2011 were deemed Class A Redeemable Units. The rights, liabilities, risks and fees associated with investment in the Class A Redeemable Units did not change. Class Z Redeemable Units were first issued on October 1, 2011. As of December 31, ~~2013~~2015 and 2014, there were no Redeemable Units outstanding in Class D. Class A, Class D and Class Z will each be referred to as a “Class” and collectively referred to as the “Classes.” The Class of Redeemable Units that a limited partner of the Partnership (each, a “Limited Partner”) receives upon a subscription will generally depend upon the amount invested in the Partnership or the status of the Limited Partner, although the General Partner may determine to offer a particular Class of Redeemable Units to investors at its discretion. Class Z Redeemable Units are offered to certain employees of Morgan Stanley and its subsidiaries (and their family members).

isThe ~~sent by registered mail to the~~ General Partner and ~~not~~each ~~less~~Limited ~~than~~Partner ~~ninety~~share ~~(90)~~in ~~days prior to~~ the ~~effective~~profits ~~date~~and losses of ~~such~~the ~~dissolution;~~Partnership ~~(ii)~~in ~~assignment~~proportion byto the ~~General~~amount ~~Partner~~ of ~~all~~partnership ~~of its~~ interest ~~in the~~owned ~~Partnership,~~by ~~or the withdrawal~~each, ~~removal,~~except ~~bankruptcy or any other event~~ that ~~causes~~no ~~the~~Limited ~~General~~ Partner toshall ~~cease to~~ be aliable ~~general~~for ~~partner~~obligations ~~under~~of the ~~Delaware Revised Uniform Limited~~ Partnership ~~Act,~~in ~~unless~~excess ~~the~~of ~~Partnership is continued as described~~their ininitial ~~the~~capital ~~limited~~contribution ~~partnership~~and ~~agreement~~profits, ~~(the~~if ~~“Limited Partnership Agreement”); or (iii) the occurrence of~~ any, ~~event~~net ~~which shall make it unlawful for the existence~~ of ~~the~~distributions ~~Partnership~~and ~~to be continued. In addition~~losses, ~~the General Partner may, in its sole discretion, cause the Partnership to dissolve~~ if ~~the Partnership’s aggregate net assets decline to less than $1,000,000~~any.

2The affairs of the Partnership will be wound up and the Partnership liquidated as soon as practicable upon the first to occur of the following: (i) the vote to dissolve the Partnership by Limited Partners owning more than 50% of all Classes of Redeemable Units then outstanding (excluding Redeemable Units owned by the General Partner, an affiliate of the General Partner or any of their employees); notice of which is sent by registered mail to the General Partner not less than ninety (90) days prior to the effective date of such dissolution; (ii) assignment by the General Partner of all of its interest in the Partnership or the withdrawal, removal, bankruptcy or any other event that causes the General Partner to cease to be a general partner under the Delaware Revised Uniform Limited Partnership Act, unless the Partnership is continued as described in the limited partnership agreement (the “Limited Partnership Agreement”); or (iii) the occurrence of any event which shall make it unlawful for the existence of the Partnership to be continued. ~~Significant~~ ~~Accounting~~In ~~Policies~~addition, the General Partner may, in its sole discretion, cause the Partnership to dissolve if the Partnership’s aggregate net assets decline to less than $1,000,000.

a.In ~~Partnership~~July 2015, ~~and~~the ~~Fund~~General ~~Valuation.~~Partner ~~The~~delegated ~~Partnership’s~~certain ~~investments~~administrative infunctions ~~Funds~~to ~~(as~~SS&C ~~defined~~Technologies, ~~below)~~Inc., ~~are~~a ~~carried~~Delaware atcorporation, currently ~~fair~~doing ~~value~~business as ~~determined~~SS&C byGlobeOp (the ~~Partnership’s pro rata interest in the net assets of each Fund~~“Administrator”). AsPursuant to a ~~general~~master ~~matter~~services agreement, the ~~fair~~Administrator ~~value~~will offurnish ~~the~~certain ~~Partnership’s~~administrative, ~~investment~~accounting, inregulatory, areporting, ~~Fund~~tax ~~represents~~and ~~the~~other ~~amount~~services ~~that~~as ~~the~~agreed ~~Partnership~~from time ~~can reasonably expect~~ to ~~receive~~time. ~~from~~In aaddition, ~~Fund if~~ the ~~Partnership’s~~Administrator ~~investment~~will ~~was~~maintain ~~redeemed~~certain atbooks ~~the~~and ~~time~~records of ~~valuation, based on information available at~~ the ~~time~~Partnership. The ~~Funds~~costs ~~provide for redemptions as~~ of ~~the~~retaining ~~end of any day (~~the ~~“Redemption~~Administrator ~~Date”)~~will ~~provided~~be aallocated ~~request~~among ~~for~~the ~~redemption~~pools ~~has~~operated ~~been~~by ~~made to~~ the General Partner, atincluding ~~least 3 days in advance of~~ the ~~Redemption Date~~Partnership. ~~The underlying investments of each Fund are accounted for at fair value as described in the respective Fund’s financial statements.~~

b2. Basis ~~Revenue Recognition. The change in the Partnership’s investment in a Fund is included in change in net unrealized gains (losses) on investments on the Statements~~ of ~~Income~~Presentation and ~~Expenses.~~Summary ~~The~~of ~~Partnership~~Significant ~~records~~Accounting aPolicies ~~realized gain or loss on its investments in the Funds as the difference between the redemption proceeds and the related cost of such investment.~~

ca. Use of Estimates. The preparation of financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates.

~~The~~42 net asset value per Redeemable Unit is determined as of the close of business at the end of each month in accordance with the valuation principles set forth above or as may be determined from time to time pursuant to policies established by the General Partner.

d. Statement of Cash Flows. The Partnership is not required to provide a Statement of Cash Flows.

e. Income Taxes. Income taxes have not been provided as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses.

GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements and requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership’s financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions with respect to tax at the Partnership level not deemed to meet the“more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. The General Partner has concluded that no provision for income tax is required in the Partnership’s financial statements.

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~The 31financial statements of the Partnership have been prepared using the “Fund of Funds” approach, ~~2014~~and accordingly, the Partnership’s pro-rata share of all revenue and expenses of the Funds is reflected as net change in unrealized gains (losses) on investment in Funds in the Statements of Income and Expenses. Contributions to and withdrawals from the Funds are recorded on the effective date. The Partnership records a realized gain or loss on its investments in the Funds as the difference between the redemption proceeds and the related cost of such investment. In determining the cost of such investments, the Partnership uses the average cost method.

~~The Partnership files U~~b.S. ~~federal~~Statement ~~and~~of ~~various~~Cash ~~state and local tax returns~~Flows. ~~No income tax returns are currently under examination.~~ The ~~2011~~Partnership ~~through~~is ~~2014~~not ~~tax~~required ~~years remain subject~~ to ~~examination~~provide bya ~~U.S.~~Statement ~~federal and most state tax authorities. The General Partner does not believe that there are any uncertain tax positions that require recognition~~ of aCash ~~tax liability~~Flows.

fc. ~~Net~~Partnership’s ~~income~~Investments. The Partnership carries its investments in MB Master based on the Partnership’s (~~loss~~1) ~~per~~net ~~Redeemable~~contribution ~~Unit.~~to ~~Net~~MB ~~income~~Master and (~~loss~~2) ~~per~~its ~~Redeemable~~allocated ~~Unit~~share isof ~~calculated~~the undistributed profits and losses, including realized gains (losses) and net change in ~~accordance~~unrealized ~~with~~gains ~~investment~~(losses), ~~company~~of ~~guidance~~MB Master. ~~See~~The ~~Note~~Partnership 8,carries ~~“Financial~~its ~~Highlights~~investment in JEM Master based on JEM Master’s net asset value per unit as calculated by JEM Master.”

gFunds’ Investments. ~~Investment~~All ~~Company~~commodity ~~Status.~~interests ~~Effective~~of ~~January~~the 1Funds, ~~2014,~~including ~~the~~derivative ~~Partnership~~financial instruments ~~adopted~~and ~~Accounting~~derivative ~~Standards~~commodity ~~Update~~instruments, ~~(“ASU”)~~held ~~2013-08,~~by ~~“Financial~~the ~~Services~~Funds —are ~~Investment~~held ~~Companies~~for ~~(Topic~~trading ~~946):~~purposes. ~~Amendments~~The tocommodity ~~the~~interests ~~Scope,~~are ~~Measurement~~recorded on trade date and ~~Disclosure~~open ~~Requirements.”~~contracts ~~ASU~~are ~~2013-08~~recorded ~~changes~~at ~~the~~fair ~~approach~~value to(as ~~the~~described ~~investment~~in ~~company~~Note ~~assessment~~5, ~~requires~~“Fair ~~non-controlling~~Value Measurements”) ~~ownership~~at ~~interests~~the inmeasurement ~~other~~date. ~~investment~~Investments ~~companies~~in tocommodity beinterests ~~measured~~denominated atin ~~fair~~foreign ~~value,~~currencies ~~and~~are ~~requires~~translated ~~additional~~into ~~disclosures~~U.S. ~~about~~dollars at the ~~investment~~exchange ~~company’s~~rates ~~status~~prevailing asat anthe ~~investment~~measurement ~~company~~date. ~~ASU~~Gains ~~2013-08~~or islosses ~~effective~~are ~~for~~realized ~~interim~~when ~~and~~contracts are ~~annual~~liquidated ~~reporting~~and ~~periods~~are ~~beginning~~determined ~~after~~using ~~December~~the 15first-in, ~~2013~~first-out method. ~~The~~Unrealized ~~adoption~~gains ofor ~~this~~losses ~~ASU~~on ~~did~~open ~~not~~contracts ~~have~~are included as a ~~material~~component ~~impact~~of onequity in trading account in the ~~Partnership~~Funds’s ~~financial~~Statements ~~statements~~of Financial Condition. ~~Based~~Net onrealized ~~the~~gains ~~General~~or losses ~~Partner’s~~and ~~assessment,~~net ~~the~~change ~~Partnership~~in ~~has~~unrealized ~~been~~gains ~~deemed~~or tolosses beare anreported ~~investment~~in ~~company~~the ~~since~~Funds’ ~~inception~~Statements of Income and Expenses.

hd. ~~Subsequent~~Income ~~Events~~Taxes. Income taxes have not been listed as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses. The General Partner ~~evaluates~~concluded ~~events~~ that ~~occur~~no ~~after~~provision ~~the~~for ~~balance~~income ~~sheet~~tax ~~date~~is ~~but~~required ~~before~~in the Partnership’s financial statements. The Partnership files U.S. federal and various state and local tax returns. No income tax returns are ~~issued~~currently under examination. The ~~General~~2012 ~~Partner~~through ~~has~~2015 ~~assessed~~tax ~~subsequent~~years ~~events~~remain ~~through~~subject ~~the~~to ~~date~~examination ofby ~~issuance~~U.S. federal and ~~determined~~most ~~that~~state notax ~~events~~authorities. ~~have~~The ~~occurred~~General Partner does not believe that ~~require~~there ~~adjustments~~are toany oruncertain ~~disclosure~~tax inpositions ~~the~~that ~~financial~~require ~~statements~~recognition of a tax liability.

3e. ~~Fair~~ ~~Value~~Investment ~~Measurements~~Company Status. Effective January 1, 2014, the Partnership adopted Accounting Standards Update (“ASU”) 2013-08, “Financial Services — Investment Companies (Topic 946): Amendments to the Scope, Measurement and ~~Disclosures~~Disclosure Requirements” and based on the General Partner’s assessment, the Partnership has been deemed to be an investment company since inception. Accordingly, the Partnership follows the investment company accounting and reporting guidance of Topic 946 and reflects its investments at fair value with unrealized gains and losses resulting from changes in fair value reflected in the Statements of Income and Expenses.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditionsf. ~~The~~Net ~~fair~~income ~~value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities~~ (~~Level 1~~loss) ~~and~~per ~~the~~Redeemable ~~lowest~~Unit. ~~priority~~Net ~~to fair~~income ~~values derived from unobservable inputs~~ (~~Level 3~~loss). ~~The~~per ~~level~~Redeemable inUnit ~~the~~is ~~fair~~calculated ~~value hierarchy within which the fair value measurement~~ in ~~its~~accordance ~~entirety~~with ~~falls~~investment ~~shall~~company ~~be determined based on the lowest level input that is significant to the fair value measurement in its entirety~~guidance. ~~The~~See ~~General~~Note ~~Partner has concluded that based on available information in the marketplace~~8, ~~the~~“Financial ~~Funds’ Level 1 assets and liabilities are actively traded~~Highlights”.

~~GAAP~~g. ~~also~~Fair ~~requires~~value ~~the~~of ~~need~~Financial toInstruments. ~~use~~The ~~judgment~~carrying invalue ~~determining~~of ifthe aassets ~~formerly~~and ~~active~~liabilities ~~market~~presented ~~has become inactive and~~ in ~~determining~~each ~~fair~~Fund’s ~~values~~respective ~~when the~~Statements ~~market~~of ~~has~~Financial ~~become~~Condition ~~inactive. The General Partner has concluded~~ that ~~based~~qualify onas ~~available~~financial ~~information~~instruments inunder the ~~marketplace,~~Financial ~~there~~Accounting ~~has~~Standards ~~not~~Board ~~been~~(“FASB”) aAccounting ~~significant~~Standards ~~decrease~~Codification in(“ASC”) ~~the~~825, ~~volume~~“Financial ~~and~~Instruments,” ~~level~~approximates ofthe ~~activity~~fair invalue ~~the~~due ~~Partnership’s~~to ~~and~~ the ~~Funds’ Level~~short 2term ~~assets~~nature ~~and~~of ~~liabilities.~~such balances.

~~The~~43 Partnership and the Funds will separately present purchases, sales, issuances, and settlements in their reconciliation of Level 3 fair value measurements (i.e., to present such items on a gross basis rather than on a net basis), and make disclosures regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value for measurements that fall within either Level 2 or Level 3 of the fair value hierarchy as required under GAAP.

The Partnership and the Funds consider prices for exchange-traded commodity futures, forwards, swaps and options contracts to be based on unadjusted quoted prices in active markets for identical

Commodity Advisors Fund L.P.

Notes to Financial Statements

h. Recent Accounting Pronouncements. In May 2015, the FASB issued ASU 2015-07 “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which relates to disclosures for investments that calculate net asset value per share (potentially fund of fund structures). The ASU requires investments for which the practical expedient is used to measure fair value at Net Asset Value (“NAV”) be removed from the fair value hierarchy. Instead, an entity is required to include those investments as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount in the balance sheet. Further, the ASU removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The standard is effective for public business entities for fiscal years beginning after December 3115, ~~2014~~2015. Early adoption is permitted. The Partnership has elected to adopt the guidance as of June 30, 2015. As a result of this adoption, the investments that are measured at fair value based on the net asset value per share (or its equivalent) practical expedient have been removed from the fair value hierarchy in all periods presented in these financial statements.

In ~~assets~~January 2016, the FASB issued ASU 2016-01, “Recognition and ~~liabilities~~Measurement ~~(Level~~of 1)Financial Assets and Financial Liabilities”. The ~~values~~amendments in this update address certain aspects of ~~non-exchange-traded~~recognition, ~~forwards~~measurement, ~~swaps~~presentation, and disclosure ~~certain~~of ~~options~~financial ~~contracts~~instruments for ~~which~~all ~~market~~entities ~~quotations~~that ~~are~~hold ~~not~~financial ~~readily~~assets ~~available~~or ~~are~~owe ~~priced~~financial ~~by broker-dealers~~liabilities. One ~~who~~of ~~derive~~the ~~fair~~amendments ~~values~~in this update eliminates the requirement for ~~those~~public ~~assets~~business entities to disclose the methods and ~~liabilities~~significant assumptions ~~from~~used ~~observable~~to ~~inputs~~estimate ~~(Level~~the ~~2).~~fair ~~Investments~~value inthat ~~funds~~is ~~(other~~required ~~commodity~~to ~~pools)~~be ~~where~~disclosed ~~there~~for ~~are~~financial noinstruments ~~other~~measured ~~rights~~at amortized cost on the balance sheet or ~~obligations~~a ~~inherent~~description ~~within~~of changes in the ~~ownership~~methods ~~interest~~and ~~held~~significant byassumptions. Additionally, the ~~Partnership~~update ~~are~~eliminates ~~priced~~the ~~based~~requirement onto disclose the ~~end~~fair value of ~~the~~financial ~~day~~instruments ~~net~~measured ~~asset~~at ~~value~~amortized ~~(Level~~cost 2)for entities that are not public business entities. ~~The~~Investment ~~value~~companies ofare ~~the~~specifically ~~Partnership~~exempted from ASU 2016-01’s ~~investments~~equity investment inaccounting ~~the~~provisions ~~Funds~~and ~~reflects~~will ~~its~~continue ~~proportional~~to ~~interest~~follow in the ~~Funds.~~industry Asspecific ofguidance ~~and~~ for ~~the~~investment ~~years~~accounting ~~ended~~under ~~December~~Topic ~~31,~~946. ~~2014~~For ~~and~~public ~~2013~~business entities, ~~the Partnership~~this ~~and~~update ~~the~~is ~~Funds~~effective ~~did~~for ~~not~~fiscal ~~hold~~years ~~any~~beginning ~~derivative~~after ~~instruments~~December 15, ~~that~~2017, and ~~were~~interim ~~priced~~periods attherein. ~~fair~~For ~~value~~other ~~using~~entities, ~~unobservable~~it ~~inputs~~is ~~through~~effective ~~the~~for ~~application~~fiscal ofyears ~~the~~beginning ~~General~~after ~~Partner’s~~December 15, ~~assumptions~~2018, and ~~internal~~interim ~~valuation~~periods ~~pricing~~within ~~models~~fiscal ~~(Level~~years ~~3).~~beginning ~~During~~after ~~the years~~December 15, ~~ended~~2019. ~~December~~The ~~31,~~General ~~2014~~Partner ~~and~~is ~~2013,~~currently ~~there~~evaluating ~~were~~the impact nothis ~~transfers~~guidance ofwill ~~assets~~have oron ~~liabilities~~the ~~between~~Partnership’s ~~Level~~financial 1statements and ~~Level~~related 2disclosures.

Asi. Reclassification. Certain prior period amounts have been reclassified to conform to current period presentation. Amounts reported as professional fees in the Statements of ~~December~~Financial ~~31, 2014~~Condition and ~~2013,~~Statements ~~all~~ of Income and Expenses were previously reported separately as professional fees and other expenses. In the ~~Funds~~financial highlights for Class A Redeemable Units, ongoing selling agent fees which were ~~classified~~previously included in net realized and unrealized gains (losses) per Redeemable Unit and excluded from expenses per Redeemable Unit, are now excluded from net realized and unrealized gains (losses) per Redeemable Unit and included in net investment loss per Redeemable Unit. This information was previously included as ~~Level~~footnotes 2to ~~investments~~the financial highlights table. Interest income per Redeemable Unit and expenses per Redeemable Unit previously presented separately are now combined into net investment loss per Redeemable Unit.

	December 31, 2014		Quoted Prices inActive Markets forIdentical Assetsand Liabilities(Level 1)		Significant OtherObservableInputs(Level 2)		SignificantUnobservable Inputs(Level 3)
Assets
Investment in Funds	$	17,065,168	$	—	$	17,065,168	$	—
Net fair value	$	17,065,168	$	—	$	17,065,168	$	—
	December 31, 2013		Quoted Prices inActive Markets forIdentical Assetsand Liabilities(Level 1)		Significant OtherObservableInputs(Level 2)		SignificantUnobservable Inputs(Level 3)
Assets
Investment in Funds	$	29,461,787	$	—	$	29,461,787	$	—
Net fair value	$	29,461,787	$	—	$	29,461,787	$	—

Subsequent Events. The General Partner evaluates events that occur after the balance sheet date but before financial statements are issued. The General Partner has assessed the subsequent events through the date of issuance and determined that other than as described in Note 10 to the financial statements, there were no subsequent events requiring adjustment of or disclosure in the financial statements.

~~4. Agreements~~44

a. Limited Partnership Agreement:

The General Partner administers the business and affairs of the Partnership, including selecting one or more advisors to make trading decisions for the Partnership. The Partnership pays the General Partner a monthly administrative fee in return for its services to the Partnership equal to 1/12th of 1.0% (1.0% per year) of month-end Net Assets per Class, for each outstanding Class. Month-end Net Assets per Class, for the purpose of calculating the administrative fee are Net Assets, as defined in the Limited Partnership Agreement, prior to the reduction of the current month’s incentive fee accrual, the monthly management fees, the administrative fee, the selling agent fees and any redemptions or distributions as of the end of such month. This fee may be increased or decreased at any time at the discretion of the General Partner. The administrative fee for the years ended December 31, 2014, 2013 and 2012 was $213,165, $321,493 and $439,898, respectively, as disclosed on the Statements of Income and Expenses. Of this amount, $15,330 and $24,562 remained payable as of December 31, 2014 and 2013, respectively, as disclosed on the Statements of Financial Condition.

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~3. Agreements: ~~31, 2014~~

ba. ~~Management~~Limited ~~Agreements~~Partnership Agreement:

The General Partner, onadministers ~~behalf~~the ofbusiness and affairs of the Partnership, ~~entered~~including ~~into management~~selecting ~~agreements~~one ~~(each,~~or amore ~~“Management~~advisors ~~Agreement”)~~to ~~with~~make ~~Aventis~~trading ~~Asset~~decisions ~~Management,~~for ~~LLC~~the ~~(“Aventis”),~~Partnership. ~~Krom~~The ~~River~~Partnership ~~Investment~~pays ~~Management~~the ~~(Cayman)~~General ~~Limited~~Partner ~~and~~a ~~Krom~~monthly ~~River~~administrative ~~Trading~~fee AGin ~~(collectively,~~return ~~“Krom~~for ~~River”),~~its ~~and~~services ~~JE Moody~~to &the ~~Company~~Partnership ~~LLC~~ (the “~~JE Moody~~General Partner fee”), (~~each~~formerly, anthe ~~“Advisor”~~administrative ~~and~~fee) ~~collectively,~~equal ~~the~~to ~~“Advisors”),~~1/12th ~~each~~ of ~~which~~1.0% ~~is a registered commodity trading advisor or exempt from such registration~~(1.0% ~~The~~per ~~General~~year) ~~Partner, on behalf~~ of ~~the~~month-end ~~Partnership,~~Net ~~had~~Assets ~~also~~per ~~entered~~Class, ~~into~~for ~~Management~~each ~~Agreements~~outstanding ~~with~~Class. ~~Flintlock~~Month-end ~~Capital~~Net ~~Asset~~Assets ~~Management~~per ~~LLC~~Class, ~~(“Flintlock”)~~for ~~and~~the ~~Cirrus~~purpose ~~Capital~~of ~~Management~~calculating ~~LLC~~the ~~(“Cirrus”).~~General ~~Each~~Partner ~~Management~~fee ~~Agreement~~are ~~may be terminated upon notice by~~Net ~~either~~Assets, ~~party.~~as ~~Flintlock~~defined ~~was~~in ~~terminated~~the asLimited aPartnership ~~commodity~~Agreement, ~~trading~~prior ~~advisor~~to ~~for~~ the ~~Partnership~~reduction as of ~~October~~the ~~31,~~current ~~2012,~~month’s ~~and~~incentive ~~Cirrus~~fee ~~was~~accrual, ~~terminated~~the asmonthly amanagement ~~commodity~~fees, ~~trading advisor for~~ the ~~Partnership~~General asPartner offee, ~~August~~the ~~31,~~ongoing ~~2013.~~selling ~~Krom~~agent ~~River~~fees ~~was~~and ~~terminated~~any asredemptions aor ~~commodity~~distributions ~~trading~~as ~~advisor~~of ~~for~~ the ~~Partnership~~end as of ~~December 31,~~such ~~2014~~month. ~~References~~This tofee anmay ~~“Advisor”~~be increased or ~~the~~decreased ~~“Advisors”~~at ~~may~~any ~~include~~time ~~any~~at orthe ~~all~~discretion of ~~Flintlock~~the ~~and~~General ~~Cirrus, as applicable~~Partner.

~~Aventis receives a monthly management fee equal to 1~~b.~~25%~~ ~~per~~Management year of month-end Net Assets allocated to Aventis. Prior to March 1, 2014, Aventis received a monthly management fee equal to 1.50% per year. For the period from October 1, 2013 to its termination on December 31, 2014, Krom River received a monthly management fee equal to 1.0% per year of month-end Net Assets allocated to Krom River. Prior to October 1, 2013, Krom River received a monthly management fee equal to 2.0% per year. JE Moody receives a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to JE Moody. Flintlock received a monthly management fee equal to 1.5% per year of month-end Net Assets allocated to Flintlock. Cirrus received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to Cirrus. Month-end Net Assets, for the purpose of calculating management fees are Net Assets, as defined in the Limited Partnership Agreement, prior to the reduction of the current month’s incentive fee accrual, the monthly management fee, the administrative fee, the ongoing selling agent fees and any allocable redemptions or distributions as of the end of such month. :

InThe ~~addition,~~General ~~the Partnership pays or paid each Advisor an incentive fee~~Partner, ~~payable~~on ~~quarterly,~~behalf ~~equal to 20%~~ of the ~~New Trading Profits~~Partnership, asentered ~~defined~~into management inagreements (each ~~Management Agreement~~, ~~earned by each Advisor for the Partnership during each calendar quarter. To the extent an Advisor incurs~~ a ~~loss~~“Management ~~for~~Agreement”) ~~the~~with ~~Partnership,~~ the ~~Advisor~~ ~~will not be paid incentive fees until the Advisor recovers the net loss incurred and earns additional new trading profits for the Partnership~~Advisors.

InAventis ~~allocating~~receives ~~the~~a ~~assets~~monthly management fee equal to 1.25% per year of ~~the~~month-end ~~Partnership~~Net ~~among~~Assets allocated to Aventis. Prior to March 1, 2014, Aventis received a monthly management fee equal to 1.50% per year. During the ~~Advisors~~reporting period, JE Moody received a monthly management fee equal to 2.0% per year of month-end Net Assets allocated to JE Moody. For the ~~General~~period ~~Partner~~from ~~considers~~October ~~each~~1, ~~Advisor’s~~2013 ~~past~~to ~~performance~~its termination on December 31, ~~trading style~~2014, ~~volatility~~Krom River received a monthly management fee equal to 1.0% per year of ~~markets~~month-end ~~traded~~Net ~~and~~Assets allocated to Krom River. Prior to October 1, 2013, Krom River received a monthly management fee ~~requirements~~equal to 2.0% ~~The~~per ~~General~~year. ~~Partner~~Cirrus ~~may~~received ~~modify~~a ormonthly ~~terminate~~management ~~the~~fee ~~allocation~~equal to 2.0% per year of ~~assets~~month-end Net Assets allocated to Cirrus, prior to its termination on August 31, 2013. Month-end Net Assets, for the ~~Advisors~~purpose ~~and~~of ~~may~~calculating ~~allocate~~management fees are Net Assets, as defined in the ~~assets~~Limited Partnership Agreement, prior to ~~additional~~the ~~advisors~~reduction atof the current month’s incentive fee accrual, the monthly management fee, the General Partner fee, the ongoing selling agent fees and any ~~time~~allocable redemptions or distributions as of the end of such month.

c.In ~~Selling~~addition, ~~Agent~~the Partnership is obligated to pay each Advisor an incentive fee, payable quarterly, equal to 20% of the New Trading Profits, as defined in each Management Agreement, earned by each Advisor for the Partnership during each calendar quarter. The Advisors’ incentive fees will be allocated proportionally to each Class based on the net asset value of the Class. To the extent an Advisor incurs a loss for the Partnership, the Advisor will not be paid incentive fees until the Advisor recovers the net loss incurred and earns additional new trading profits for the Partnership.

~~The~~In ~~Partnership~~allocating ~~has entered into a selling agent agreement (~~the ~~“Selling~~ ~~Agent~~assets ~~Agreement”)~~of ~~which provides that~~ the Partnership among ~~pay~~the ~~Morgan~~trading ~~Stanley Smith Barney LLC~~advisors, ~~doing~~the ~~business~~General asPartner ~~Morgan~~considers ~~Stanley~~past ~~Wealth~~performance, ~~Management~~trading ~~(“Morgan~~style, ~~Stanley~~volatility ~~Wealth~~of ~~Management”)~~markets atraded ~~monthly~~and ~~ongoing~~fee ~~selling~~requirements. ~~agent~~The ~~fee~~General ~~equal to~~Partner ~~(i)~~may ~~2.0%~~modify ~~per~~or ~~year~~terminate of the ~~adjusted~~allocation ~~net~~of assets ofamong ~~Class~~the Atrading advisors and ~~(ii)~~may allocate ~~0.75% per year of~~ the ~~adjusted net~~ assets ~~of Class D. The Partnership will not pay an ongoing selling agent fee with respect~~ to ~~Limited~~additional ~~Partners~~advisors ~~holding~~at ~~Class~~any ~~Z Redeemable Units~~time. ~~For~~ ~~purposes of calculating the ongoing selling agent fee, adjusted net assets are Month-end~~

3945

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~c. ~~31,~~Customer ~~2014~~Agreements/Selling Agent Agreement:

~~Net~~During ~~assets~~and prior to the ~~reduction~~fourth quarter of 2013, the ~~current~~Partnership ~~month’s~~and ~~incentive~~the ~~fee~~Funds ~~accrual,~~entered into a customer agreement (the ~~monthly~~“CGM ~~management~~Customer ~~fee~~Agreement”) with CGM whereby CGM provided services which included, ~~the~~among ~~administrative~~other ~~fee~~things, the ~~ongoing~~execution ~~selling~~of ~~agent~~transactions ~~fee~~for ~~and~~the ~~any~~Funds’ ~~allocable~~respective accounts ~~redemptions~~in oraccordance ~~distributions~~with asorders ofplaced by the ~~end~~Advisors. ofThe ~~such~~Partnership ~~month~~paid CGM exchange, give-up, user, clearing, floor brokerage and National Futures Association (“NFA”) fees (collectively, the “Original CGM clearing fees”) through its investment in the Funds.

dAdditionally, during and prior to the third quarter of 2013, the Partnership also paid a service fee to CGM through its investment in the Funds (together with the Original CGM clearing fees, the “CGM clearing fees”). ~~Customer~~CGM ~~Agreement:~~clearing fees were allocated to the Partnership based on its proportionate share of each Fund. All of the Partnership’s assets that were not held in the Funds’ accounts at CGM were deposited in the Partnership’s accounts at CGM. The Partnership’s cash was deposited by CGM in segregated bank accounts to the extent required by Commodity Futures Trading Commission regulations.

~~During~~CGM ~~and~~paid ~~prior~~the toPartnership ~~the~~interest ~~fourth~~on ~~quarter~~100% of ~~2013,~~ the ~~Funds~~average ~~(as~~daily ~~defined below~~equity maintained in ~~Note~~cash 6)in ~~entered~~the Partnership’s ~~into~~(or athe ~~customer~~Partnership’s ~~agreement~~allocable ~~(the~~portion ~~“CGM~~of ~~Customer~~a ~~Agreement”~~Fund’s) ~~with~~brokerage ~~CGM~~account ~~whereby~~at ~~CGM~~a ~~provided~~30-day ~~services~~U.S. ~~which~~Treasury ~~included,~~bill ~~among~~rate ~~other~~determined ~~things,~~weekly ~~the~~by ~~execution~~CGM ofbased ~~transactions~~on ~~for~~ the ~~Funds’~~average ~~respective~~noncompetitive ~~accounts~~yield ~~in accordance~~on ~~with~~3-month ~~orders placed by the Advisors~~U.S. ~~The~~Treasury ~~Partnership~~bills ~~paid~~maturing ~~CGM~~in ~~exchange,~~30 days ~~give-up,~~from ~~user, clearing, floor brokerage and National Futures Association (“NFA”) fees (collectively,~~ the ~~“Original~~date ~~CGM~~on ~~clearing~~which ~~fees”)~~such ~~through~~weekly ~~its investment~~rate inis ~~the Funds~~determined.

~~Additionally,~~During ~~for~~the ~~part~~fourth quarter of 2013, the ~~third~~Partnership ~~quarter~~and ofthe ~~2012~~Funds entered into a customer agreement with MS&Co. (the “MS&Co. Customer Agreement”). The Partnership and ~~through~~the ~~part~~Funds ofhave terminated the ~~third~~CGM ~~quarter~~Customer ofAgreement. ~~2013~~Under the MS&Co. Customer Agreement, the Partnership ~~also~~pays ~~paid~~trading afees ~~service~~for ~~fee~~the clearing toand, ~~CGM~~where ~~through~~applicable, ~~its~~execution ~~investment~~of intransactions, ~~the~~as ~~Funds~~well as exchange, clearing, user, give-up, floor brokerage and NFA fees (collectively, the “MS&Co. clearing fees” and together with the ~~Original~~ CGM clearing fees, the “~~CGM~~ clearing fees”) through its investment in the Funds. ~~CGM~~MS&Co. clearing fees ~~were~~are allocated to the Partnership based on its proportionate share of each Fund. All of the Partnership’s assets ~~that were~~ not held in the Funds’ accounts at ~~CGM~~MS&Co. ~~were~~ are deposited in the Partnership’s ~~accounts~~account at ~~CGM~~MS&Co. The Partnership’s cash ~~was~~is deposited by ~~CGM~~MS&Co. in segregated bank accounts to the extent required by Commodity Futures Trading Commission regulations. MS&Co. has agreed to pay the Partnership interest on 100% of the average daily equity maintained in cash in the Partnership’s (or the Partnership’s allocable portion of a Fund’s) brokerage account at a rate equal to the monthly average of the 4-week U.S. Treasury bill discount rate. The MS&Co. Customer Agreement may generally be terminated upon notice by either party.

~~CGM~~The ~~paid~~Partnership ~~the~~has entered ~~Partnership~~into ~~interest~~a onselling ~~100%~~agent ofagreement (the ~~average~~“Selling ~~daily equity~~Agent ~~maintained~~Agreement”), inwhich ~~cash~~provides inthat the Partnership’s ~~(or~~pay ~~the~~Morgan ~~Partnership’s~~Stanley ~~allocable~~Smith ~~portion~~Barney ofLLC, adoing ~~Fund’s)~~business ~~brokerage~~as ~~account~~Morgan atStanley Wealth Management (“Morgan Stanley Wealth Management”) a ~~30-day~~monthly Uongoing selling agent fee equal to (i) 2.S.0% ~~Treasury~~per ~~bill~~year ~~rate~~of ~~determined~~the ~~weekly~~adjusted bynet ~~CGM~~assets ~~based~~of onClass A and (ii) 0.75% per year of the ~~average~~adjusted ~~non-competitive~~net ~~yield~~assets onof ~~3-month U~~Class D.S. ~~Treasury~~The ~~bills~~Partnership ~~maturing~~will innot 30pay ~~days~~an ~~from~~ongoing ~~the~~selling ~~date~~agent onfee ~~which~~with respect ~~such~~to ~~weekly~~Limited ~~rate~~Partners isholding ~~determined~~Class Z Redeemable Units.

~~During~~For ~~the~~purposes ~~fourth quarter~~ of ~~2013,~~calculating the ~~Partnership~~ ~~entered~~ongoing ~~into~~selling aagent ~~customer agreement with MS&Co. (the “MS&Co. Customer Agreement”). The Partnership has terminated the CGM Customer Agreement. Under the MS&Co. Customer Agreement~~fee, ~~the~~adjusted ~~Partnership pays trading fees for~~net ~~the~~assets ~~clearing~~are ~~and, where applicable, execution of transactions, as well as exchange, clearing, user, give~~Month-~~up,~~end ~~floor~~Net ~~brokerage~~Assets ~~and~~prior ~~NFA fees (collectively, the “MS&Co. clearing fees,” and together with the CGM clearing fees, the “clearing fees”) through its investment in the Funds. MS&Co clearing fees are allocated~~ to the ~~Partnership~~reduction ~~based on its proportionate share~~ of ~~each Fund. Clearing fees will be paid for~~ the ~~life~~current ~~of the Partnership, although the rate at which such fees are paid may be changed. All of the Partnership~~month’s ~~assets~~incentive ~~not~~fee ~~held~~accrual, in the ~~Funds’~~monthly ~~accounts~~management atfee, ~~MS&Co. are deposited in~~ the ~~Partnership’s~~General ~~account~~Partner atfee, ~~MS&Co. The Partnership’s cash is deposited by MS&Co. in segregated bank accounts to~~ the ~~extent~~ongoing ~~required~~selling byagent ~~Commodity~~fee ~~Futures~~and ~~Trading~~any ~~Commission~~allocable ~~regulations.~~redemptions ~~MS&Co.~~or ~~has~~distributions ~~agreed~~as ~~to pay the Partnership interest on 100%~~ of the ~~average daily equity maintained in cash in the Partnership’s (or the~~end ~~Partnership’s allocable portion~~ of asuch ~~Fund’s) brokerage account at a rate equal to the monthly average of the 4-week U~~month.S. ~~Treasury bill discount rate. The MS&Co. Customer Agreement may generally be terminated upon notice by either party.~~

~~5. Trading~~46 ~~Activities:~~

The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The Partnership’s investments are in other funds which trade these commodity interests. The results of the Partnership’s trading activities from its investments in the Funds are shown in the Statements of Income and Expenses.

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~4. Trading ~~31,~~Activities: ~~2014~~

~~During~~The ~~the~~Partnership ~~third~~was ~~quarter~~formed offor ~~2013,~~the KRpurpose ~~Master~~of ~~Fund~~trading ~~L.P.~~contracts ~~(“KR~~in ~~Master”)~~a ~~and~~variety MBof ~~Master Fund~~commodity ~~L.P.~~interests, ~~(“MB~~including ~~Master”)~~derivative financial ~~entered~~instruments ~~into~~and aderivative ~~futures~~commodity ~~brokerage account agreement with MS&Co~~instruments. KRThe ~~Master~~Partnership’s ~~and~~investments MBare ~~Master~~in ~~commenced~~other ~~futures~~Funds ~~trading~~which ~~through~~trade anthese ~~account~~commodity ~~at MS&Co~~interests. onThe orPartnership’s ~~about~~pro-rata ~~August~~share 5,of ~~2013, and August 19, 2013, respectively. During~~ the ~~4th~~results ~~quarter~~ of ~~2013,~~the ~~JEM~~Funds’ ~~Master~~trading ~~Fund~~activities ~~L.P.~~is shown ~~(“JEM~~in ~~Master”)~~the ~~entered~~Partnership’s ~~into~~Statements aof ~~futures~~Income ~~account agreement with MS&Co.~~ and ~~commenced trading through an account at MS&Co~~Expenses. ~~on or about October 10, 2013.~~

~~The~~During ~~MS&Co. Customer Agreement with~~ the ~~Partnership~~third ~~and~~quarter ~~the~~of ~~Funds~~2013, ~~gives~~KR ~~the~~Master ~~Partnership~~Fund ~~and~~L.P. ~~the~~(“KR Master”) ~~Funds,~~ and ~~the~~MB ~~CGM~~Master ~~Customer~~Fund ~~Agreement~~L.P ~~with the~~(“MB ~~Funds~~Master”) ~~gave~~entered ~~the~~into ~~Funds,~~a ~~the~~futures ~~legal~~brokerage ~~right~~account toagreement ~~net~~with ~~unrealized~~MS&Co. ~~gains~~KR Master and ~~losses~~MB onMaster ~~open~~commenced futures ~~and~~trading ~~open~~through ~~forward~~an ~~contracts.~~account ~~The~~at ~~Partnership~~MS&Co. ~~and~~on ~~the~~or ~~Funds~~about ~~net~~August 5, ~~for~~2013 ~~financial~~and ~~reporting~~August 19, ~~purposes~~2013, respectively. During the ~~unrealized~~4th ~~gains~~quarter ~~and~~of ~~losses~~2013, onJEM ~~open~~Master ~~futures~~Fund ~~and~~L.P. ~~open forward~~(“JEM ~~contracts~~Master”) onentered ~~the~~into ~~Statements~~a offutures ~~Financial~~account ~~Condition~~agreement aswith ~~the~~MS&Co. ~~criteria~~and ~~under~~commenced ~~Accounting~~trading ~~Standards~~through ~~Codification~~an ~~210-20,~~account ~~“Balance~~at ~~Sheet,”~~MS&Co. ~~have~~on ~~been~~or ~~met~~about October 10, 2013.

The MS&Co. Customer Agreements with the Partnership and the Funds give, and the CGM Customer Agreement with the Partnership and the Funds gave, the Partnership and the Funds the legal right to net unrealized gains and losses on open futures and open forward contracts. The Partnership and the Funds net, for financial reporting purposes, the unrealized gains and losses on open futures and open forward contracts in the Statements of Financial Condition as the criteria under ASC 210-20, “Balance Sheet,” have been met.

Trading and transaction fees are based on the number of trades executed by the Advisors for the Funds and the Partnership’s respective percentage ownership of each Fund.

65. ~~Investment~~ Fair inValue ~~Funds~~Measurements:

Funds’ Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The fair value of exchange-traded futures, option and forward contracts is determined by the various 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.) on 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. U.S. Treasury bills are valued at the last available bid price received from independent pricing services as of the close of the last business day of the reporting period.

The Funds consider prices for exchange-traded commodity futures, forward, swap and option contracts to be based on unadjusted quoted prices in active markets for identical assets and liabilities (Level 1). The values of U.S. Treasury bills, non-exchange-traded forward, swap and certain option contracts for which market quotations are not readily available are priced by broker quotes or pricing services that derive fair values for those assets and liabilities from observable inputs (Level 2). The value of the Partnership’s investments in the Funds reflects its proportional interest in the Funds. As of and for the years ended December 31, 2015 and 2014, the Funds did not hold any derivative instruments that were priced at fair value using unobservable inputs through the application of the General Partner’s assumptions and internal valuation pricing models (Level 3).

Commodity Advisors Fund L.P.

Notes to Financial Statements

Transfers between levels are recognized at the end of the reporting period. During the years ended December 31, 2015 and 2014, there were no transfers of assets or liabilities between Level 1 and Level 2.

6. Investment in Funds:

On May 1, 2011, the assets allocated to Flintlock for trading were invested in FL Master Fund L.P. (“FL Master”), a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in FL Master with cash equal to $4,171,892. FL Master permitted accounts managed by Flintlock using the Flintlock Commodity Opportunities Partners, LP, at 200% leverage, a proprietary, systematic trading program, to invest together in one trading vehicle. The Partnership fully redeemed its investment in FL Master on October 31, 2012, for cash equal to $2,046,008.

On May 1, 2011, the assets allocated to Aventis for trading were invested in MB Master, a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in MB Master with cash equal to $12,756,614. MB Master permits commodity pools managed by Aventis using the Aventis Diversified Commodity Strategy (formerly the Barbarian Program), a proprietary, discretionary trading system, to invest together in one trading vehicle. The General Partner is also the general partner of MB Master. Individual and pooled accounts currently managed by Aventis, including the Partnership, are permitted to be limited partners of MB Master. The General Partner and Aventis believe that trading through this structure should promote efficiency and economy in the trading process.

On May 1, 2011, the assets allocated to Krom River for trading were invested in KR Master, a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased an interest in KR Master with cash equal to $13,913,306. KR Master permitted commodity pools managed now or in the future by Krom River using the Krom River Commodity Program, a proprietary, discretionary trading system, to invest together in one trading vehicle. The Partnership fully redeemed its investment in KR Master on December 31, 2014, for cash equal to $1,342,427.

Commodity Advisors Fund L.P.

Notes to Financial Statements

December 31, 2014

On May 1, 2011, the assets allocated to JE Moody for trading were invested in JEM Master, a limited partnership organized under the partnership laws of the State of Delaware. The Partnership purchased 12,594.1917 units of JEM Master with cash equal to $12,753,614. JEM Master permits accounts managed by JE Moody using the JEM Commodity Relative Value Program, a proprietary, systematic trading program, to invest together in one trading vehicle. The General Partner is also the general partner for JEM Master. Individual and pooled accounts currently managed by JE Moody, including the Partnership, are permitted to be limited partners of JEM Master. The General Partner and JE Moody believe that trading through this structure should promote efficiency and economy in the trading process.

The General Partner is not aware of any material changes to the trading programs discussed above during the ~~year~~years ended December 31, 2015, 2014 and 2013.

~~KR Master’s (prior to its full redemption on December 31, 2014),~~ MB Master’s, and JEM Master’s (collectively, the “Funds”) trading of futures, forward, swap and option contracts, if applicable, on commodities ~~are~~is done primarily on U.S. and foreign commodity exchanges. During the ~~year~~years ended December 31, 2015 and 2014, the Funds engaged in such trading through commodity brokerage accounts maintained with MS&Co. During a prior ~~periods~~period included in this report, the Funds also engaged in such trading through commodity brokerage accounts maintained with CGM. Reference herein to the “Funds” may also include ~~any or all of MB Master,~~ KR Master, ~~JEM Master, FL Master~~ and Cirrus Master, as applicable.

AAll ~~limited~~clearing ~~partner~~fees ofare borne by the Funds. ~~may~~Professional ~~withdraw~~fees ~~all or part of its capital contribution~~ and ~~undistributed~~other ~~profits,~~expenses ifare ~~any,~~borne ~~from~~by the Funds asand ofallocated ~~the end of any day provided a request for redemption has been made~~ to the Partnership, ~~General~~and ~~Partner~~also atcharged ~~least~~directly 3at ~~days in advance of~~ the ~~Redemption~~Partnership ~~Date~~level. ~~Such~~All ~~withdrawals are~~other ~~classified~~fees asare acharged ~~liability~~at ~~when~~ the ~~limited~~Partnership ~~partner elects to redeem and informs the Funds~~level.

~~Management~~Generally, ~~and~~a limited ~~incentive~~partner ~~fees~~in ~~are charged at~~ the ~~Partnership~~Funds ~~level.~~withdraws ~~All~~all ~~clearing~~or ~~fees~~part ~~are~~of ~~borne~~its bycapital ~~the~~contribution ~~Funds.~~and ~~Professional~~undistributed ~~fees~~profits, ~~and~~if ~~other~~any, ~~expenses~~from ~~are~~the ~~borne~~Funds byas of the ~~Funds~~end ~~and~~of ~~allocated~~any tomonth (the ~~Partnership,~~“Redemption ~~and~~Date”) ~~also~~after ~~charged~~a ~~directly~~request athas ~~the~~been ~~Partnership~~made ~~level.~~to ~~All~~the ~~other~~General ~~fees~~Partner ~~and~~at least ~~commissions~~three ~~are charged~~days atin advance of the ~~Partnership~~Redemption ~~level~~Date.

As48 of December 31, 2014, the Partnership owned approximately 3.6% and 29.4% of MB Master and JEM Master, respectively. At December 31, 2013, the Partnership owned approximately 3.6%, 11.8% and 30.1% of MB Master, KR Master and JEM Master, respectively. It is the intention of the Partnership to continue to invest in the Funds (other than KR Master). The performance of the Partnership is directly affected by the performance of the Funds. Expenses to investors as a result of investment in the Funds are approximately the same and the redemption rights are not affected.

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~Such 31withdrawals are classified as a liability when the limited partner elects to redeem and informs the Funds. However, ~~2014~~a limited partner may request a withdrawal as of the end of any day if such request is received by the General Partner at least three days in advance of the proposed withdrawal day.

~~Summarized~~At ~~information~~December ~~reflecting~~31, 2015, the ~~total~~Partnership ~~assets~~owned approximately 5.4% and 39.0% of MB Master and JEM Master, ~~liabilities~~respectively. At December 31, 2014, the Partnership owned approximately 3.6%, and ~~capital~~29.4% of MB Master and JEM Master, respectively. It is the intention of the Partnership to continue to invest in the Funds. The performance of the Partnership is directly affected by the performance of the ~~shown~~Funds. Expenses to the investors as a result of the investment in the ~~following~~Funds ~~tables:~~are approximately the same as they would be if the Partnership traded directly and the redemption rights are not affected.

	December 31, 2014
	Investments’ TotalAssets		Investments’ TotalLiabilities		Investments’ TotalCapital
MB Master	$	251,452,587	$	23,303,716	$	228,148,871
KR Master		12,415,386		12,415,386		—
JEM Master		29,918,670		42,666		29,876,004

Summarized information reflecting the total assets, liabilities and partners’ capital of the Funds is shown in the following tables:

	December 31, 2013
	December 31, 2015
	Investments’ TotalAssets		Investments’ TotalLiabilities		Investments’ TotalCapital
	Total Assets		Total Liabilities		Total Partners’Capital
MB Master	$	~~327~~160,~~755~~197,~~293~~353	$	15824,~~924,656~~707	$	~~311~~159,~~830~~372,~~637~~646
KR Master		44,043,845		1,456,785		42,587,060
JEM Master		11,192,959		67,453		11,125,506
JEM Master		44,509,274		32,554		44,476,720
	December 31, 2014
	Total Assets		Total Liabilities		Total Partners’Capital
MB Master	$	251,452,587	$	23,303,716	$	228,148,871
KR Master		12,415,386		12,415,386		—
JEM Master		29,918,670		42,666		29,876,004

Summarized information reflecting the net investment income (loss), total trading results and net income (loss) ~~for~~of the Funds is shown in the following tables:

	For the Year Ended December 31, 2014
	For the year ended December 31, 2015
	Net InvestmentIncome (Loss)			Total TradingResults			Net Income(Loss)
	NetInvestmentIncome (Loss)			Total TradingResults			Net Income(Loss)
MB Master	$	(3,544,946	)	$	(5,123,213	)	$	(8,668,159	)
JEM Master		(865,124	)		1,989,416			1,124,292
	For the year ended December 31, 2014
	NetInvestmentIncome (Loss)			Total TradingResults			Net Income(Loss)
MB Master	$	(4,655,303	)	$	7,309,353		$	2,654,050
KR Master		(159,030	)		893,723			734,693
JEM Master		(1,002,655	)		(1,233,774	)		(2,236,429	)

	For the Year Ended December 31, 2013
	Net InvestmentIncome (Loss)			Total TradingResults			Net Income(Loss)
Cirrus Master	$	(172,349	)	$	(2,058,250	)	$	(2,230,599	)
MB Master		(5,087,972	)		14,221,096			9,133,124
KR Master		(281,565	)		(5,175,049	)		(5,456,614	)
JEM Master		(1,212,224	)		5,953,699			4,741,475

Commodity Advisors Fund L.P.

Notes to Financial Statements

December 31, 2014

Summarized information reflecting the Partnership’s investment in, and the operations of, the Funds is shown in the following tables:

	December 31, 2014								Expenses
	December 31, 2015					For the year ended December 31, 2015
Investment	% of Partnership’sNet Assets			Fair Value		Income(Loss)			ClearingFees		Other		Net Income(Loss)			InvestmentObjective		RedemptionsPermitted
									Expenses
MB Master		45.84	%	$	8,268,092	$	87,782		$	135,932	$	2,982	$	(51,132	)		Commodity Portfolio	Monthly
Funds	% of Partnership’sNet Assets			Fair Value		Income(Loss)			ClearingFees		Other		Net Income(Loss)			InvestmentObjective
KR Master		0.00	%		—		107,393			10,204		10,447		86,742			Commodity Portfolio	Monthly
MB Master		72.39	%	$	8,632,747	$	(317,132	)	$	169,215	$	3,699	$	(490,046	)		Commodity Portfolio
JEM Master		4836.7840	%		84,~~797~~341,~~076~~192		~~(422~~584,~~889~~125	)		~~261~~275,~~838~~814		3329,~~429~~940		~~(718~~278,~~156~~371	)		Commodity Portfolio	~~Monthly~~
Total				$	1712,~~065~~973,~~168~~939	$	~~(227~~266,~~714~~993	)	$	~~407~~445,~~974~~029	$	4633,~~858~~639	$	(~~682~~211,~~546~~675	)
	December 31, 2013								Expenses
	December 31, 2014					For the year ended December 31, 2014
Investment	% of Partnership’sNet Assets			Fair Value		Income(Loss)			ClearingFees		Other		Net Income(Loss)			InvestmentObjective		RedemptionsPermitted
									Expenses
Cirrus Master		0.00	%	$	—	$	(105,640	)	$	9,559	$	14,122	$	(129,321	)		Energy Portfolio	Monthly
Funds	% of Partnership’sNet Assets			Fair Value		Income(Loss)			ClearingFees		Other		Net Income(Loss)			InvestmentObjective
MB Master		3945.8984	%	$	118,~~037~~268,~~122~~092	$	~~523~~87,~~665~~782		$	~~198~~135,~~653~~932	$	52,~~350~~982	$	~~319~~(51,~~662~~132	)		Commodity Portfolio	~~Monthly~~
KR Master		~~18.19~~—	%		~~5,032,058~~—		~~(392~~107,~~935~~393	)		2110,~~066~~204		710,~~430~~447		~~(421~~86,~~431~~742	)		Commodity Portfolio	~~Monthly~~
JEM Master		48.4178	%		138,~~392~~797,~~607~~076		1(422,~~709,229~~889	)		~~323~~261,~~310~~838		2433,~~017~~429		1(718,~~361,902~~156	)		Commodity Portfolio	~~Monthly~~
Total				$	2917,~~461~~065,~~787~~168	$	1(227,~~734,319~~714	)	$	~~552~~407,~~588~~974	$	5046,~~919~~858	$	1(682,~~130,812~~546	)

7. Subscriptions, Redemptions, and Distributions

Subscriptions are accepted monthly from investors ~~that~~who become Limited Partners on the first day of the month after their subscription is processed. Distributions of profits, if any, will be made at the sole discretion of the General Partner and at such times as the General Partner may decide. A Limited Partner may require the Partnership to redeem its Redeemable Units at their net asset value per Redeemable Unit as of the last day of each month on three business days’ notice to the General Partner. There is no fee charged to Limited Partners in connection with redemptions.

8. Financial Highlights

~~Changes~~Financial inhighlights for the ~~net~~Limited ~~asset~~Partner ~~value~~classes ~~per~~as ~~Redeemable~~a ~~Unit~~whole for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 were as follows:

	2014						2013						2012
	2015						2014						2013
	Class A			Class Z			Class A			Class Z			Class A			Class Z
Net realized and unrealized gains (losses) *	$	(54.17	)	$	(18.20	)	$	22.92		$	34.08		$	(13.93	)	$	10.40
Net realized and unrealized gains (losses)	$	(23.15	)	$	(16.36	)	$	(27.63	)	$	(18.20	)	$	51.42		$	34.08
Interest Income		0.25			0.16			0.53			0.36			0.91			0.58
Net investment loss		(77.79	)		(35.82	)		(78.50	)		(35.07	)		(92.93	)		(42.51	)
Expenses **		(52.21	)		(35.23	)		(64.96	)		(42.87	)		(63.81	)		(41.37	)
Increase (decrease) for the year		(100.94	)		(52.18	)		(106.13	)		(53.27	)		(41.51	)		(8.43	)
Increase (decrease) for the period		(106.13	)		(53.27	)		(41.51	)		(8.43	)		(76.83	)		(30.39	)
Net asset value per unit, beginning of year		1,304.97			889.87			1,411.10			943.14			1,452.61			951.57
Net asset value per Redeemable Unit, beginning of period		1,411.10			943.14			1,452.61			951.57			1,529.44			981.96
Net asset value per unit, end of year	$	1,204.03		$	837.69		$	1,304.97		$	889.87		$	1,411.10		$	943.14
Net asset value per Redeemable Unit, end of period	$	1,304.97		$	889.87		$	1,411.10		$	943.14		$	1,452.61		$	951.57

*50 Includes Partnership ongoing selling agent fees (Class A only). Net realized and unrealized gains (losses) excluding ongoing selling agent fees for the years ended December 31, 2014, 2013, and 2012 were $(27.63), $51.42 and $15.91, respectively.

** Excludes Partnership ongoing selling agent fees (Class A only). Total expenses including ongoing selling agent fees for the years ended December 31, 2014, 2013, and 2012 were $(78.75), $(93.46) and $(93.65), respectively.

Commodity Advisors Fund L.P.

Notes to Financial Statements

December 31, 2014


	2015						2014						2013
	Class A			Class Z			Class A			Class Z			Class A			Class Z

Ratios to average net assets:
Net investment loss*		(6.2	)%		(4.1	)%		(6.1	)%		(3.8	)%		(6.8	)%		(10.6	)%

Operating expenses		6.2			4.1			6.1			3.8			6.1			9.6
Incentive fees		—	%		—	%		—	%		—	%		0.7	%		1.1	%

Total expenses		6.2	%		4.1	%		6.1	%		3.8	%		6.8	%		10.7	%


Total return:
Total return before incentive fees		(7.7	)%		(5.9	)%		(7.5	)%		(5.6	)%		(2.1	)%		0.2	%
Incentive fees		—	%		—	%		—	%		—	%		(0.8	)%		(1.1	)%

Total return after incentive fees		(7.7	)%		(5.9	)%		(7.5	)%		(5.6	)%		(2.9	)%		(0.9	)%

	2014						2013						2012
	Class A			Class Z			Class A			Class Z			Class A			Class Z
Ratios to Average Net Assets:
Net investment income (loss)		(6.1	)%		(3.8	)%		(6.8	)%		(10.6	)%		(6.5	)%		(7.2	)%
Incentive fees		—	%		—	%		0.7	%		1.1	%		0.4	%		0.9	%
Net investment income (loss) before incentive fees ***		(6.1	)%		(3.8	)%		(6.1	)%		(9.5	)%		(6.1	)%		(6.3	)%
Operating expenses		6.1	%		3.8	%		6.1	%		9.6	%		6.1	%		6.3	%
Incentive fees		—	%		—	%		0.7	%		1.1	%		0.4	%		0.9	%
Total expenses and incentive fees		6.1	%		3.8	%		6.8	%		10.7	%		6.5	%		7.2	%
Total return:
Total return before incentive fees		(7.5	)%		(5.6	)%		(2.1	)%		0.2	%		(4.7	)%		(2.5	)%
Incentive fees		—	%		—	%		(0.8	)%		(1.1	)%		(0.3	)%		(0.6	)%
Total return after incentive fees		(7.5	)%		(5.6	)%		(2.9	)%		(0.9	)%		(5.0	)%		(3.1	)%

*	Interest income less total expenses.

~~***~~The ~~Interest~~above ~~income~~ratios ~~less~~and total return may vary for individual investors based on the timing of capital transactions during the year. Additionally, these ratios are calculated for the Limited Partner Classes using the Limited Partners’ share of income, expenses ~~(exclusive~~and average net assets and exclude the income and expenses of ~~incentive~~the ~~fees)~~Funds.

The above ratios may vary for individual investors based on the timing of capital transactions during the year. Additionally, these ratios are calculated for the Limited Partner Class using the Limited Partners’ share of income, expenses and average net assets.

9. Financial Instrument Risks:

In the normal course of business, the Partnership, through its ~~investment~~investments in the Funds, is a party to financial instruments with off-balance sheet risk, including derivative financial instruments and derivative commodity instruments. These financial instruments may include forwards, futures, ~~options~~U.S. ~~and~~Treasury bills, swaps and options, whose values are based upon an underlying asset, index, or reference rate, and generally represent future commitments to exchange currencies or cash balances, or to purchase or sell other financial instruments at specific terms at specified future dates, or, in the case of derivative commodity instruments, to have a reasonable possibility to be settled in cash, through physical delivery or with another financial instrument. These instruments may be traded on an exchange, a swap execution facility or over-the-counter (“OTC”) OTC. Exchange-traded instruments include futures and certain standardized forward, ~~swap~~option and ~~option~~swap contracts. Certain swap contracts may also be traded on a swap execution facility or OTC. OTC contracts are negotiated between contracting parties and also include certain forward and option contracts. Specific market movements of commodities or futures contracts underlying an option cannot be accurately be predicted. The purchaser of an option may lose the entire premium paid for the option. The writer, or seller, of an option has unlimited risk. Each of these instruments is subject to various risks similar to those related to the underlying financial instruments including market and credit risk. In general, the risks associated with OTC contracts are greater than those associated with exchange-traded instruments because of the greater risk of default by the counterparty to an OTC contract. ~~None~~Since May 1, 2011, none of the ~~Partnership’s/~~Funds’ contracts have traded OTC, although contracts may be traded OTC in the future.

Futures Contracts. The ~~risk~~Funds trade futures contracts. A futures contract is a firm commitment to buy or sell a specified quantity of investments, currency or a standardized amount of a deliverable grade commodity, at a specified price on a specified future date, unless the ~~Limited~~contract ~~Partners~~is ~~that~~closed ~~have~~before ~~purchased~~the ~~Redeemable~~delivery date ~~Units~~or if the delivery quantity is ~~limited~~something towhere physical delivery cannot occur (such as the ~~amount~~S&P of500 ~~their~~Index), ~~share~~whereby ofsuch contract is settled in cash. Payments (“variation margin”) may be made or received by the ~~Partnership’s~~Funds ~~net~~each business ~~assets~~day, depending on the daily fluctuations in the value of the underlying contracts, and ~~undistributed~~are ~~profits~~recorded as unrealized gains or losses by the Funds. ~~This~~When ~~limited~~the ~~liability~~contract is closed, the Funds record a ~~result~~realized ofgain or loss equal to the ~~organization~~difference between the value of the ~~Partnership~~contract asat athe ~~limited~~time ~~partnership~~it ~~under~~was ~~Delaware~~opened ~~law~~and the value at the time it was closed.

4551

Commodity Advisors Fund L.P.

Notes to Financial Statements

~~December~~Transactions 31in futures contracts require participants to make both initial margin deposits of cash or other assets and variation margin deposits, ~~2014~~through the futures broker, directly with the exchange on which the contracts are traded. Net realized gains (losses) and net change in unrealized gains (losses) on futures contracts are included in the Funds’ Statements of Income and Expenses.

~~Market~~London ~~risk~~Metals isExchange Forward Contracts. Metal contracts traded on the ~~potential~~London ~~for~~Metals ~~changes~~Exchange in(“LME”) ~~the~~represent ~~value~~a firm commitment to buy or sell a specified quantity of ~~the~~aluminum, ~~financial~~copper, ~~instruments~~lead, nickel, tin or zinc. LME contracts traded by the Funds ~~due~~are tocash ~~market~~settled ~~changes,~~based ~~including~~on ~~interest~~prompt ~~and~~dates ~~foreign~~published by ~~exchange~~the ~~rate~~LME. ~~movements~~Payments ~~and~~(“variation ~~fluctuations~~margin”) inmay ~~commodity~~be made or ~~security~~received ~~prices.~~by ~~Market~~the ~~risk~~Funds iseach ~~directly~~business ~~impacted~~day, bydepending on the ~~volatility~~daily ~~and~~fluctuations ~~liquidity~~ in the ~~markets~~value inof ~~which~~the underlying contracts, and are recorded as unrealized gains or losses by the ~~related~~Funds. ~~underlying~~A ~~assets~~contract ~~are~~is ~~traded~~considered offset when all long positions have been matched with a like number of short positions settling on the same prompt date. ~~The~~When ~~Partnership~~the ~~and~~contract is closed at the ~~Funds~~prompt ~~are~~date, ~~exposed~~the toFunds record a ~~market~~realized ~~risk~~gain or loss equal to the difference between the value of ~~futures~~the contract at the time it was opened and ~~forward~~its value at the time it was closed. Transactions in LME contracts ~~purchased~~require participants to make both initial margin deposits of cash or other assets and ~~unlimited~~variation ~~liability~~margin deposits, through the broker, directly with the LME. Net realized gains (losses) and net change in unrealized gains (losses) on ~~such~~metal contracts ~~sold~~are ~~short~~included in the Funds’ Statements of Income and Expenses.

~~Credit~~Options. The ~~risk~~Funds ~~is the possibility that a loss~~ may ~~occur~~purchase ~~due~~and towrite ~~the~~(sell) ~~failure~~both ofexchange-listed aand ~~counterparty~~OTC tooptions ~~perform~~on ~~according~~commodities toor ~~the~~financial ~~terms of a contract~~instruments. ~~The~~An ~~Partnership’s/Funds’~~option ~~risk~~is ofa ~~loss~~contract inallowing, ~~the~~but ~~event~~not ofrequiring, aits ~~counterparty~~holder ~~default is typically limited~~ to ~~the~~buy ~~amounts~~(call) ~~recognized~~or insell ~~the~~(put) ~~Statements~~a ofspecific ~~Financial~~or ~~Condition~~standard ~~and~~commodity isor ~~not~~financial ~~represented~~instrument byat ~~the~~a ~~contract~~specified orprice ~~notional~~during ~~amounts~~a ofspecified ~~the~~time ~~instruments~~period. The ~~Partnership’s/Funds’~~option ~~risk~~premium ~~of loss~~ is ~~reduced through~~ the ~~use~~total ofprice ~~legally~~paid ~~enforceable~~or received ~~master~~for ~~netting~~the ~~agreements~~option ~~with~~contract. ~~counterparties~~When ~~that permit~~ the ~~Partnership/~~Funds towrite ~~offset~~an ~~unrealized~~option, ~~gains~~the ~~and~~premium ~~losses~~received ~~and~~is ~~other~~recorded ~~assets~~as ~~and~~a ~~liabilities with~~liability ~~such~~in ~~counterparties upon~~ the ~~occurrence of certain events. The Partnership/~~Funds’ ~~had~~Statements ~~credit~~of ~~risk~~Financial ~~and~~Condition ~~concentration risk during the reporting period~~ and ~~prior~~marked ~~periods~~to ~~included~~market ~~in this report, as MS&Co~~daily. ~~and/or~~When ~~CGM~~the orFunds ~~their~~purchase ~~affiliates~~an ~~were~~option, the ~~sale~~ ~~counterparties~~premium orpaid ~~brokers~~is recorded ~~with~~as ~~respect~~an toasset in the ~~Partnership’s/~~Funds’ ~~assets.~~Statements ~~Credit~~of ~~risk~~Financial ~~with~~Condition ~~respect~~and tomarked ~~exchange-traded instruments is reduced~~ to ~~the~~market ~~extent that, through MS&Co~~daily. ~~and/or~~Net ~~CGM,~~realized ~~the~~gains ~~Partnership’s/Funds’ counterparty~~(losses) isand annet ~~exchange~~change orin ~~clearing~~unrealized ~~organization.~~gains ~~The~~(losses) ~~Partnership/Funds~~on ~~continue~~options tocontracts beare ~~subject~~included toin ~~such~~the ~~risks~~Funds’ ~~with~~Statements ~~respect~~of toIncome and ~~MS&Co~~Expenses.

As both a buyer and seller of options, the Funds pay or receive a premium at the outset and then bear the risk of unfavorable changes in the price of the contract underlying the option. Written options expose the Funds to potentially unlimited liability; for purchased options, the risk of loss is limited to the premiums paid. Certain written put options permit cash settlement and do not require the option holder to own the reference asset. The Funds do not consider these contracts to be guarantees.

The ~~General~~Funds ~~Partner monitors~~do ~~and~~not ~~attempts~~isolate ~~to control~~ the ~~Partnership’s~~portion ~~and~~of the ~~Funds’~~results ~~risk~~of ~~exposure~~operations onarising afrom ~~daily~~the ~~basis~~effect ~~through~~of ~~financial,~~changes ~~credit~~in ~~and~~foreign ~~risk~~exchange ~~management~~rates ~~monitoring~~on ~~systems, and accordingly, believes that it has effective procedures for evaluating~~investments ~~and~~from ~~limiting~~fluctuations ~~the~~from ~~credit~~changes ~~and~~in market ~~risks~~prices toof ~~which~~investment ~~the Partnership and the Funds may be subject~~held. ~~These~~Such ~~monitoring~~fluctuations ~~systems~~are ~~generally~~included ~~allow~~in ~~the~~total ~~General Partner to statistically analyze actual~~ trading results ~~with~~in ~~risk-adjusted~~the ~~performance~~Funds’ ~~indicators and~~Statement ~~correlation statistics. In addition, online monitoring systems provide account analysis~~ of ~~futures~~Income and ~~exchange-cleared swap, forward and option contracts by sector, margin requirements, gain and loss transactions and collateral positions~~Expenses.

~~The~~Market ~~majority~~risk ofis ~~these~~the ~~instruments~~potential ~~mature~~for ~~within~~changes ~~one~~in ~~year~~the value of the ~~inception~~financial ~~date.~~instruments ~~However,~~traded by the Funds due to market changes, including interest and foreign exchange rate movements and fluctuations in commodity or security prices. Market risk is directly impacted by the ~~nature~~volatility ofand liquidity in the markets in which the related underlying assets are traded. The Funds’ ~~business,~~are ~~these~~exposed ~~instruments~~to ~~may~~a ~~not~~market berisk ~~held~~equal to ~~maturity~~the value of futures and forward contracts purchased and unlimited liability on such contracts sold short.

4652

~~Selected~~Commodity ~~unaudited~~Advisors ~~quarterly~~Fund ~~financial~~L.P. ~~data for the Partnership for the years ended December 31, 2014 and 2013 are summarized below:~~

	For the period fromOctober 1, 2014 toDecember 31, 2014			For the period fromJuly 1, 2014 toSeptember 30, 2014		For the periodfrom April 1, 2014to June 30, 2014			For the period fromJanuary 1, 2014 toMarch 31, 2014
Net realized and unrealized trading gains (losses) net of ongoing selling agent fee and clearing fees including interest income	$	159,750		$	278,623	$	(377,000	)	$	(1,156,814	)
Net income (loss)	$	(12,643	)	$	91,831	$	(590,209	)	$	(1,426,087	)
Increase (decrease) in Net Asset Value per Unit of Class A	$	(0.49	)	$	5.84	$	(37.46	)	$	(74.02	)
Increase (decrease) in Net Asset Value per Unit of Class Z	$	4.11		$	8.37	$	(20.77	)	$	(44.98	)

Notes to Financial Statements

	For the period fromOctober 1, 2013 toDecember 31, 2013		For the period fromJuly 1, 2013 toSeptember 30, 2013			For the periodfrom April 1, 2013to June 30, 2013			For the period fromJanuary 1, 2013 toMarch 31, 2013
Net realized and unrealized trading gains (losses) net of ongoing selling agent fee/brokerage commissions, as applicable and clearing fees including interest income	$	409,366	$	345,078		$	7,738		$	(241,437	)
Net income (loss)	$	206,493	$	(14,276	)	$	(343,433	)	$	(815,305	)
Increase (decrease) in Net Asset Value per Unit of Class A	$	9.14	$	(0.74	)	$	(14.96	)	$	(34.95	)
Increase (decrease) in Net Asset Value per Unit of Class Z	$	10.81	$	4.18		$	(5.18	)	$	(18.24	)

47The Partnership/Funds had credit risk and concentration risk during the reporting period as MS&Co. and/or CGM or their affiliates were the sole counterparties or brokers with respect to the Partnership’s/Funds’ assets. Credit risk with respect to exchange-traded instruments was reduced to the extent that, through MS&Co. and/or CGM, the counterparty was an exchange or clearing organization. The Partnership/Funds continue to be subject to such risks with respect to MS&Co.

The General Partner monitors and attempts to control the 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/ Funds 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, forward and option contracts by sector, margin requirements, gain and loss transactions and collateral positions.

The risk to the Limited Partners that have purchased Redeemable Units is limited to the amount of their share of the Partnership’s net assets and undistributed profits. This limited liability is a result of the organization of the Partnership as a limited partnership under Delaware law.

The majority of these financial instruments mature within one year of the inception date. However, due to the nature of the business, these instruments may not be held to maturity.

10. Subsequent events:

Effective January 1, 2016, the monthly management fee paid to JE Moody was reduced to 1/12^th of 1.5% (1.5% per year).

Selected unaudited quarterly financial data for the Partnership for the years ended December 31, 2015 and 2014 are summarized below:


	For the period from October 1, 2015 to December 31, 2015			For the period from July 1, 2015 to September 30, 2015			For the period from April 1, 2015 to June 30, 2015			For the period from January 1, 2015 to March 31, 2015
Total trading results	$	(64,529	)	$	(355,035	)	$	(674,057	)	$	881,946
Total investment income		1,023			161			325			410
Total expenses		(195,268	)		(234,722	)		(267,629	)		(282,734	)

Net income (loss)	$	(258,774	)	$	(589,596	)	$	(941,361	)	$	599,622

Increase (decrease) in Net Asset Value per Redeemable Unit of Class A	$	(22.70	)	$	(49.47	)	$	(71.53	)	$	42.76

Increase (decrease) in Net Asset Value per Redeemable Unit of Class Z	$	(11.52	)	$	(29.82	)	$	(44.63	)	$	33.79


	For the period from October 1, 2014 to December 31, 2014			For the period from July 1, 2014 to September 30, 2014			For the period from April 1, 2014 to June 30, 2014			For the period from January 1, 2014 to March 31, 2014
Total trading results	$	249,811		$	372,458		$	(276,226	)	$	(1,028,589	)
Total investment income		629			619			857			2,084
Total expenses		(263,083	)		(281,246	)		(314,840	)		(399,582	)

Net income (loss)	$	(12,643	)	$	91,831		$	(590,209	)	$	(1,426,087	)

Increase (decrease) in Net Asset Value per Redeemable Unit of Class A	$	(0.49	)	$	5.84		$	(37.46	)	$	(74.02	)

Increase (decrease) in Net Asset Value per Redeemable Unit of Class Z	$	4.11		$	8.37		$	(20.77	)	$	(44.98	)

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Not applicable.

Item 9A. Controls and Procedures.

The Partnership’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Partnership on the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods expected in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Partnership in the reports it files is accumulated and communicated to management, including the President and Chief Financial Officer (“CFO”) of the General Partner, to allow for timely decisions regarding required disclosure and appropriate SEC filings.

Management is responsible for ensuring that there is an adequate and effective process for establishing, maintaining and evaluating disclosure controls and procedures for the Partnership’s external disclosures.

The General Partner’s President and CFO have evaluated the effectiveness 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 December 31, ~~2014~~2015 and, based on that evaluation, the General Partner’s President and CFO have concluded that at that date the Partnership’s disclosure controls and procedures were effective.

The Partnership’s internal control over financial reporting is a process under the supervision of the General Partner’s President and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. These controls include policies and procedures that:

•

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

•

provide reasonable assurance that (i) transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and (ii) the Partnership’s receipts are handled and expenditures are made only pursuant to authorizations of the General Partner; and

•

provide reasonable assurance regarding prevention or timely detection and correction of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

The report included in “Item 8. Financial Statements and Supplementary Data.” includes the ~~management~~General Partner’s report on internal control over financial reporting (“Management’s Report”).

There were no changes in in the Partnership’s internal control over financial reporting during the fiscal quarter ended December 31, ~~2014~~2015 that materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Item 9B. Other Information.

~~None~~Effective February 1, 2016, Steven Ross was appointed a director of the General Partner and Frank Smith resigned as a director of the General Partner.

48Effective February 24, 2016, Edmond Moriarty and Kevin Klingert resigned as directors of the General Partner.

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

The Partnership has no directors or executive officers and its affairs are managed by its General Partner. Investment decisions are made by the ~~Trading~~ Advisors.

The directors and executive officers of the General Partner are Patrick T. Egan (President and Chairman of the Board of Directors of the General Partner), Steven Ross (Chief Financial Officer), ~~Alper~~and ~~Daglioglu (~~Director), ~~Jeremy Beal (Director), Colbert Narcisse (Director), Harry Handler (Director), Kevin Klingert (Director),~~ M. Paul Martin (Director), ~~Frank Smith (Director)~~ and Feta Zabeli (Director). Each director holds office until the earlier of his or her death, resignation or removal. Vacancies on the board of directors may be filled by either (i) the majority vote of the remaining directors or (ii) ~~MSSBH~~ MSSB Holdings, as the sole member of the General Partner. The officers of the General Partner are designated by the General Partner’s board of directors. Each officer will hold office until his or her successor is designated and qualified or until his or her death, resignation or removal.

Directors of the General Partner are responsible for overall corporate governance of the General Partner and meet periodically to consider strategic decisions regarding the General Partner’s activities. Under CFTC rules, each Director of the General Partner is deemed to be a principal of the General Partner and, as a result, is listed as such with the NFA. Patrick T. Egan, Feta Zabeli, ~~Kevin Klingert~~ and Steven Ross serve on the General Partner’s Investment Committee and are the trading principals responsible for allocation decisions (or supervising those responsible).

Patrick T. Egan, age 4547, has been a Director of the General Partner since December 2010. Since December 2010, Mr. Egan has been a principal and registered as an associated person of the General Partner, and is an associate member of NFA~~, and since August 2013, Mr~~. ~~Egan has been registered as a swap associated person of the General Partner.~~ Since October 2014, Mr. Egan has served as President and Chairman of the Board of Directors of the General Partner,. ~~and since January 2015~~Since August 2013, Mr. Egan has been ~~employed~~registered byas a swap associated person of the General Partner. From September 2013 to May 2014, Mr. Egan served as a Vice President of Morgan Stanley Strategies LLC, formerly known as Morgan Stanley GWM Feeder Strategies LLC, which acts as a general partner to multiple alternative investment entities, and Morgan Stanley AI GP LLC, formerly known as Morgan Stanley HedgePremier GP LLC, which acts as a general partner and administrative agent to numerous hedge fund feeder funds. From September 2013 to May 2014, Mr. Egan was registered as an associated person and listed as a principal of each such entity. Since January 2013, each such entity has been registered as a commodity pool operator with the CFTC. Mr. Egan was responsible for overseeing the implementation of certain CFTC and NFA regulatory requirements applicable to such entities. From June 2009 to December 2014, Mr. Egan was employed by Morgan Stanley Smith ~~Wealth~~Barney ~~Management~~LLC, a financial services firm, where his responsibilities ~~have~~ included serving as Executive Director and as Co-Chief Investment Officer for Morgan Stanley Managed Futures from June 2009 through June 2011, and as Chief Risk Officer for Morgan Stanley Managed Futures from June 2011 through October 2014. Since October 2014, ~~and~~Mr. asEgan ~~Head~~has been responsible for the day-to-day operations and management of Morgan Stanley Managed Futures. ~~since~~Since ~~October~~January 2015, ~~2014~~Mr. Egan has been employed by the General Partner. From November 2010 to October 2014, Mr. Egan was registered as an associated person of Morgan Stanley ~~Wealth~~Smith ~~Management~~Barney LLC. From April 2007 through June 2009, Mr. Egan was employed by MS & Co., a financial services firm, where his responsibilities included serving as Head of Due Diligence and Manager Research for Morgan Stanley’s Managed Futures Department. From April 2007 through November 2010, Mr. Egan was registered as an associated person of MS & Co. From March 1993 through April 2007, Mr. Egan was employed by Morgan Stanley DW Inc., a financial services firm, where his initial responsibilities included serving as an analyst and manager within the Managed Futures Department (with primary responsibilities for product development, due diligence, investment analysis and risk management of the firm’s commodity pools) and later included serving as Head of Due Diligence and Manager Research for Morgan Stanley’s Managed Futures Department. From February 1998 through April 2007, Mr. Egan was registered as an associated person of Morgan Stanley DW Inc. From August 1991 through March 1993, Mr. Egan was employed by Dean Witter Intercapital, the asset management arm of Dean Witter Reynolds, Inc., where his responsibilities included serving as a mutual fund administration associate. Mr. Egan also served as a Director from November 2004 through October 2006, and from ~~November~~ November 2006 through October 2008 of the Managed Funds Association’s Board of Directors, a position he was elected to by industry peers for two consecutive two-year terms. Mr. Egan earned his Bachelor of Business Administration degree with a concentration in Finance in May 1991 from the University of Notre Dame.

Steven Ross, age 4344, has been Chief Financial Officer and a principal of the General Partner since July 2014. and a Director of the General Partner since February 2016. Mr. Ross has been employed by Morgan Stanley Investment Management, a financial services firm, since September 2005, where his responsibilities include serving as an Assistant Treasurer of Morgan Stanley with respect to certain investment vehicles publicly offered by Morgan Stanley. Mr. Ross is also an Executive Director of the Morgan Stanley Fund Administration Group where he is responsible for finance and accounting matters for certain private funds offered by Morgan Stanley. Before joining Morgan Stanley Investment Management, Mr. Ross was employed by JPMorgan Investor Services Co., a financial services firm, from December 1997 through September 2005, where his responsibilities included serving as a Vice President responsible for the accounting of certain funds sponsored by JP Morgan Chase & Co. and other large fund families serviced by JPMorgan Investor Services Co. From April 1997 to December 1997, Mr. Ross was employed by Investors Bank & Trust, a financial services firm, where his responsibilities included performing mutual fund accounting for financial services firms. Mr. Ross began his career at Putnam Investments LLC, a financial services firm, where he was responsible for providing broker services for certain funds sponsored by Putnam Investments LLC from August 1996 to April 1997. Mr. Ross received a B.S. in Accounting from Rhode Island College in May 1995.

~~Alper~~56 Daglioglu, age 38, has been a Director, and listed as a principal, of the General Partner since December 2010. He served as President of the General Partner from August 2013 through September 2014. Since October 2013, Mr. Daglioglu has also been registered as an associated person of the General Partner, and is an associate member of NFA. Since November 2013, Mr. Daglioglu has been registered as a swap associated person of the General Partner. Since May 2014, Mr. Daglioglu has been listed as a principal and registered as an associated person of each of Morgan Stanley GWM Feeder Strategies LLC, which acts as a general partner to multiple alternative investment entities, and Morgan Stanley HedgePremier GP LLC, which acts as a general partner and administrative agent to numerous hedge fund feeder funds. Mr. Daglioglu was appointed Deputy Chief Investment Officer for the Alternative Investments Group at Morgan Stanley Smith Barney LLC, a financial services firm, in August 2013. Since December 2010, Mr. Daglioglu has been employed by Morgan Stanley Smith Barney LLC where his responsibilities include serving as Managing Director as well as Chief Investment Officer for Morgan Stanley Smith Barney Managed Futures and serving on the Alternative Investments Product Review Committee of Morgan Stanley Smith Barney LLC’s Alternative Investments Group. Mr. Daglioglu has been registered as an associated person of Morgan Stanley Smith Barney LLC since October 2013. From June 2009 through December 2010, Mr. Daglioglu was employed by Morgan Stanley Smith Barney LLC, where his responsibilities included serving as a Senior Analyst in the Product Origination Group. From December 2003 through June 2009, Mr. Daglioglu was employed by Morgan Stanley, a financial services firm, where his responsibilities included serving as a Senior Analyst in the Product Origination Group, and serving as the lead investment analyst for Global Macro and Managed Futures strategies within Morgan Stanley Graystone Research Group from February 2007 through June 2009. Mr. Daglioglu earned his Bachelor of Science degree in Industrial Engineering in June 2000 from Galatasaray University and his Master of Business Administration degree in Finance in May 2003 from the University of Massachusetts-Amherst’s Isenberg School of Management. Mr. Daglioglu was awarded a full merit scholarship and research assistantship at the Center for International Securities and Derivatives Markets during his graduate studies. In this capacity, he worked with various major financial institutions in performance monitoring, asset allocation and statistical analysis projects and specialized on alternative approaches to risk assessment for hedge funds and managed futures. Mr. Daglioglu wrote and published numerous research papers on alternative investments. Mr. Daglioglu is a Chartered Alternative Investment Analyst charter holder.

49M. Paul Martin, age 57, has been a Director of the General Partner since October 2014. Mr. Martin has also served as Managing Director — Global Operations of Morgan Stanley Investment Management, a financial services firm, since June 2006, where his responsibilities include managing all elements of in-sourced and out-sourced global operations, and serving as a senior member of Morgan Stanley Investment Management’s Management, Risk Management, & New Products Committees. Mr. Martin has been listed as a principal of the General Partner since October 2014. Mr. Martin previously served as the Managing Director and Chief Operating Officer of Morgan Stanley Fund Services, a financial services firm, where his responsibilities included launching the Hedge Fund Administration business and being responsible for operations, fund accounting and administration, technology and compliance, from May 2004 through May 2006. Previously, Mr. Martin served as Managing Director — Institutional Investment Operations of Morgan Stanley Investment Management from January 1995 until April 2004, where his responsibilities included trading room support, portfolio administration, service provider management, and derivatives processing and control. From April 1994 through January 1995, Mr. Martin served as Senior Vice President and Head of Custody Operations for Fidelity Investments, a financial services firm. From October 1989 through April 1994, Mr. Martin served as Executive Director and Head of Global Operations for Morgan Stanley Trust Company, a financial services firm. Mr. Martin also served as Vice President — Information Technology for MS & Co., a financial services firm, from June 1984 through October 1989, where his responsibilities included acting as Senior Developer and Programming Manager – Prime Brokerage and Securities Clearance Systems, and as Part-time Manager — IT Training Program. From February 1984 through May 1984, Mr. Martin served as a Senior Analyst in the Financial Control Group of Shearson Lehman Brothers, Inc., a financial services firm. From October 1980 through January 1984, Mr. Martin served as a Senior Consultant — Management Information Consulting Division at Arthur Andersen & Co., an accounting firm, where his responsibilities included programming and programming supervisory roles at large governmental agencies. Mr. Martin received a B.S. in Business Administration — Finance from Georgetown University in May 1980 and an M.B.A. in Finance from New York University in June 1993.

~~Jeremy~~Feta ~~Beal~~Zabeli, age 4056, has been a Director ~~and listed as a principal~~ of the General Partner since ~~August 2013~~October 2014. ~~From August 2013 through September 2014,~~ Mr. ~~Beal~~Zabeli has also served as ~~Chairman~~a ofdirector on the Board of Directors of ~~the~~Morgan ~~General~~Stanley ~~Partner.~~Investment ~~Since May 2013~~Management, ~~Mr. Beal has been employed by Morgan Stanley,~~ a financial services firm, ~~where~~since ~~his responsibilities~~January 2015 ~~include~~and ~~serving~~has asbeen ~~the~~listed ~~Head~~as ofa ~~Product~~principal ~~Strategy~~since ~~and Development, Global Alternative Investments~~February 2015. Mr. ~~Beal~~Zabeli ~~has~~is ~~been~~also aGlobal ~~Vice~~Head ~~President~~of ~~and~~Risk ~~Director~~for ~~since~~Morgan ~~June~~Stanley ~~2013,~~Investment Management’s ~~and~~Traditional ~~listed~~Asset asManagement abusiness ~~principal~~where ~~since~~he ~~July~~is ~~2013,~~responsible offor ~~Morgan~~investment ~~Stanley~~risk ~~GWM Feeder~~of ~~Strategies~~all ~~LLC~~equity, ~~which~~fixed ~~acts~~income, asmoney amarket, ~~general~~multi-asset ~~partner~~class toand ~~multiple~~alternatives ~~alternative investment entities~~portfolios. ~~Mr.~~He ~~Beal~~is ~~has~~ also ~~been~~responsible afor ~~Vice~~counterparty ~~President~~ and ~~Director~~quantitative model ~~since~~risk ~~June~~for ~~2013,~~the ~~and~~traditional ~~listed~~asset asmanagement abusiness. ~~principal~~He ~~since~~joined ~~August~~Morgan ~~2013,~~Stanley ofin ~~Morgan~~January 2012. ~~Stanley~~Mr. ~~HedgePremier~~Zabeli ~~GP LLC,~~has ~~which~~been ~~acts~~listed as a ~~general~~principal ~~partner~~of ~~and~~the ~~administrative~~General ~~agent~~Partner tosince ~~numerous~~October 2014. ~~hedge~~Mr. ~~fund~~Zabeli ~~feeder~~was ~~funds.~~on ~~Since~~garden ~~January~~leave ~~2013,~~in ~~each~~December 2011. From ofFebruary 2006 ~~Morgan~~to ~~Stanley~~November 2011, ~~GWM~~Mr. ~~Feeder~~Zabeli ~~Strategies~~was ~~LLC~~Senior Vice President, and ~~Morgan~~most ~~Stanley~~recently ~~HedgePremier~~Global GPCo-Head ~~LLC~~of ~~has~~Risk, ~~been~~for ~~registered~~AllianceBernstein asL.P., a ~~commodity~~global ~~pool operator~~investment firm, with ~~the~~various ~~CFTC.~~risk ~~Mr.~~management ~~Beal~~assignments isin ~~responsible~~Hong ~~for~~Kong, ~~general~~Tokyo, ~~management~~ London and ~~oversight~~New ~~with~~York. ~~respect~~From August 2006 to ~~such~~April 2009, ~~entities.~~ Mr. ~~Beal~~Zabeli ~~has~~was ~~also~~based ~~been~~in ~~employed~~Hong byKong ~~Morgan~~for ~~Stanley~~AllianceBernstein ~~Smith~~as ~~Barney~~the ~~Private~~Director ~~Management~~of ~~LLC,~~Risk ~~Morgan~~Management ~~Stanley~~for ~~Smith~~Asia ~~Barney~~Pacific. ~~Private~~From ~~Management II~~April 2009 ~~LLC~~to July 2011, ~~and~~he ~~Morgan~~was ~~Stanley~~based ~~Smith~~in ~~Barney~~Tokyo ~~Venture~~for ~~Services~~AllianceBernstein as ~~LLC,~~both ~~each~~Director anof ~~investment~~Risk ~~management~~Management ~~company,~~for ~~since~~Asia ~~June~~Pacific ~~2013,~~and ~~where~~Head ~~his~~of ~~responsibilities~~Risk ~~include~~Management ~~acting~~for ~~as Vice President and Director~~Japan. InFrom ~~October~~July 2011 ~~2012~~to November 2011, ~~Mr.~~he ~~Beal~~ was ~~appointed~~based ~~Chief~~in ~~Operating Officer~~London offor JEAllianceBernstein ~~Moody~~as &Global ~~Company~~Head ~~LLC,~~of aOperational ~~hedge~~& ~~fund~~Credit/Counterparty ~~and~~Risk. ~~commodity~~In these ~~trading~~roles ~~advisor,~~at ~~although~~AllianceBernstein he ~~did~~was ~~not~~responsible ~~exercise~~for ~~all~~the ~~authorities~~full ~~associated~~range ~~with~~of ~~the~~risk ~~role~~management ~~prior~~functions toincluding ~~his~~investment, ~~departure~~operational inand ~~May~~credit/counterparty ~~2013~~risk. Prior to ~~joining~~his JERisk ~~Moody~~Management &roles ~~Company~~at ~~LLC~~Morgan Stanley and AllianceBernstein, Mr. ~~Beal was~~ ~~employed~~Zabeli byheld ~~Morgan~~positions ~~Stanley~~as ~~Smith~~a ~~Barney~~managing ~~LLC,~~director aat ~~financial~~Citigroup ~~services~~Asset ~~firm~~Management, ~~where~~the ~~his~~asset ~~responsibilities~~management ~~included~~division ~~serving~~of asCitigroup, ~~Chief~~an ~~Operating~~international ~~Officer,~~financial ~~Global~~services ~~Alternative~~company, ~~Investments~~ from ~~July~~April 1998 ~~2009~~to ~~through September 2012~~January 2006, ~~and~~where ~~acting~~he worked as ~~Head~~a ~~of Product~~quantitative ~~Development~~research analyst and ~~Management~~portfolio manager, ~~Alternative~~and ~~Investments~~director ~~for~~at ~~Morgan~~BARRA ~~Stanley~~Inc., ~~from~~a ~~May~~global ~~2007~~provider ~~through~~of ~~July~~risk ~~2009.~~analytic ~~From~~tools ~~March~~to ~~2002~~investment ~~through May 2007~~institutions, ~~Mr.~~from ~~Beal~~September 1993 ~~was~~to ~~employed by Morgan Stanley~~March 1998, where ~~his~~he ~~responsibilities~~developed ~~included~~risk ~~acting~~models asand ~~Head~~applications. ofMr. ~~Product~~Zabeli ~~Development,~~received ~~Managed~~a ~~Futures~~B.S. ~~for~~in ~~Morgan~~Aerospace ~~Stanley~~Engineering from ~~May~~Rensselaer ~~2005~~Polytechnic ~~through~~Institute ~~May~~in ~~2007~~May 1982, ~~and~~an ~~acting~~M.S. asin ~~Senior~~Electrical ~~Associate,~~Engineering ~~Managed Futures~~ from ~~March~~the ~~2002~~University ~~through May 2005. Mr. Beal earned his Bachelor~~ of ~~Science~~Southern ~~degree~~California in ~~Business~~May 1988 ~~Administration~~and inan ~~May~~M.B.A. ~~1997~~ from ~~Pacific~~the University ~~and his Juris Doctor and Master~~ of ~~Business~~California ~~Administration~~at ~~degree~~Los Angeles in ~~May 2001 from Willamette University~~August 1992.

~~Colbert~~The ~~Narcisse,~~Partnership ~~age 49,~~ has ~~been~~not aadopted ~~Director of the General Partner since December 2011 and listed as~~ a ~~principal~~code of ~~the~~ethics ~~General Partner~~that ~~since~~applies ~~February 2012. Since December 2012, Mr. Narcisse has been a Director on the Board of Directors and listed as a principal of Morgan Stanley GWM Feeder Strategies LLC, which acts as a general partner~~ to ~~multiple~~officers ~~alternative~~because ~~investment entities,~~it ~~and Morgan Stanley HedgePremier GP LLC, which acts as a general partner and administrative agent to numerous hedge fund feeder funds. Since January 2013, each such entity~~ has ~~been~~no ~~registered as a commodity pool operator with the CFTC~~officers. ~~Since~~ February 2011, Mr. Narcisse has been a Managing Director at Morgan Stanley Smith Barney LLC, a financial services firm, where his responsibilities have included serving as Head of the Alternative Investment Group, Head of the Corporate EquityIn ~~Solutions Group~~addition, ~~and Chief Operating Officer of~~ the ~~Investment~~Partnership ~~Strategy~~has ~~and~~not ~~Client~~adopted ~~Solutions~~any ~~Division.~~procedures ~~From~~by ~~July~~which ~~2009~~investors ~~until~~may ~~February~~recommend ~~2011,~~nominees ~~Mr. Narcisse served as Chief Executive Officer of Gold Bullion International, a business services company that enables retail investors~~ to ~~acquire,~~the ~~manage~~Partnership’s ~~and~~board store physical precious metals through their financial advisor. From March 2009 until July 2009, Mr. Narcisse took personal leave. From August 1990 until March 2009, Mr. Narcisse was employed by Merrill Lynch & Co., Inc., a financial services firm, where his responsibilities included serving as Chief Operating Officer of ~~Americas~~directors ~~Investment Banking, Chief Operating Officer of the Global Wealth Management Division,~~ and ashas annot ~~investment banker~~established in both the Financial Institutions and Public Finance Groups. From July 1987 until August 1990, Mr. Narcisse was employed by the Federal Reserve Bank of New York, where his responsibilities included serving as a Bank Examiner. Additionally, Mr. Narcisse serves on the Board of Harlem RBI, as the Vice Chair of Finance for the Montclair Cooperative School Board of Trustees, as an ~~Audit~~audit ~~Committee~~committee ~~Member~~because ofit ~~the~~has ~~New~~no ~~York~~board ~~City Housing Authority, and as a Member~~ of ~~the Executive Leadership Council~~directors. Mr. Narcisse received his Bachelor of Science degree in Finance in June 1987 from New York University. He received his Master of Business Administration degree in July 1992 from Harvard Business School.

~~Harry~~57 Handler, age 56, has been a Director of the General Partner since December 2010. Since December 2010, Mr. Handler has been registered as an associated person and listed as a principal of the General Partner, and is an associate member of NFA. Mr. Handler was listed as a principal of Demeter from May 2005, and was registered as an associated person of Demeter from April 2006, until Demeter’s combination with the General Partner in December 2010. Mr. Handler was registered as an associated person of Morgan Stanley DW Inc., a financial services firm, from February 1984 until on or about April 2007, when, because of the merger of Morgan Stanley DW Inc. into MS&Co., he became registered as an associated person of MS&Co. due to the transfer of his original registration as an associated person of Morgan Stanley DW Inc. Mr. Handler withdrew as an associated person of MS&Co. in June 2009. Mr. Handler has been registered as an associated person of Morgan Stanley Smith Barney LLC since June 2009 and listed as a branch office manager since February 2013. Mr. Handler serves as an Executive Director at Morgan Stanley Smith Barney LLC in the Global Wealth Management Group. Mr. Handler works in the Capital Markets Division and is responsible for Electronic Equity and Securities Lending. Additionally, Mr. Handler serves as Chairman of the Global Wealth Management Group’s Best Execution Committee. In his prior position, Mr. Handler was a Systems Director in Information Technology, in charge of Equity and Fixed Income Trading Systems along with the Special Products, such as Unit Trusts, Managed Futures, and Annuities. Prior to his transfer to the Information Technology Area, Mr. Handler managed the Foreign Currency and Precious Metals Trading Desk of Dean Witter, a financial services firm and predecessor company to Morgan Stanley, from July 1982 until January 1984. He also held various positions in the Futures Division where he helped to build the Precious Metals Trading Operation at Dean Witter. Before joining Dean Witter, Mr. Handler worked at Mocatta Metals, a precious metals trading firm and futures broker that was sold to Standard Charted Bank in the 1980’s, as an Assistant to the Chairman from March 1980 until June 1982. His roles at Mocatta Metals included positions on the Futures Order Entry Desk and the Commodities Exchange Trading Floor. Additional work included building a computerized Futures Trading System and writing a history of the company. Mr. Handler graduated on the Dean’s List from the University of Wisconsin-Madison with a Bachelor of Arts degree in History and Political Science.

Kevin Klingert, age 51, has been a Director of the General Partner since October 2014. Mr. Klingert has also served as Managing Director of Morgan Stanley Investment Management, a financial services firm, since December 2007, where his responsibilities include serving as head of the Morgan Stanley Investment Management Liquidity business since July 2010 and as Chief Operating Officer of Morgan Stanley Investment Management’s Traditional Asset Management business, including Long-Only, Alternative Investment Partners, and Global Liquidity, since February 2013. Mr. Klingert has been listed as a principal of Morgan Stanley Investment Management since May 2013. Mr. Klingert has been listed as a principal of the General Partner since October 2014. From June 2008 through July 2010, Mr. Klingert served as the Vice President of the U.S. registered mutual fund family managed by Morgan Stanley Investment Management, where his responsibilities included handling certain administrative matters related to the funds. From April 2008 until July 2010, Mr. Klingert served as the Global Head, Chief Operating Officer and Acting Chief Investment Officer of the Fixed Income Group of Morgan Stanley Investment Management. From December 2007 through July 2010, Mr. Klingert served as the Head of Global Liquidity Portfolio Management and Co-Head of Liquidity Credit Research of Morgan Stanley Investment Management. Mr. Klingert was listed as a principal of Morgan Stanley Hedge Fund Partners Cayman Ltd., a commodity pool operator, from September 2009 to September 2011, where his responsibilities included, along with the company’s other directors, making all management decisions on behalf of the company. From February 2007 until November 2007, Mr. Klingert was on sabbatical. Prior to joining Morgan Stanley Investment Management, Mr. Klingert was Managing Director on the Management Committee and head of Municipal Portfolio Management and Liquidity at BlackRock, Inc., a financial services firm, from October 1991 through January 2007. From March 1985 until October 1991, Mr. Klingert was an Assistant Vice President Municipal Portfolio Manager at Merrill Lynch & Co., Inc., an investment bank. Mr. Klingert received a B.S. in Business Administration from SUNY Oswego in May 1984 and an M.B.A. in Finance from New York University in February 1990.

M. Paul Martin, age 55, has been a Director of the General Partner since October 2014. Mr. Martin has also served as Managing Director — Global Operations of Morgan Stanley Investment Management, a financial services firm, since June 2006, where his responsibilities include managing all elements of in-sourced and out-sourced global operations, and serving as a senior member of Morgan Stanley Investment Management’s Management, Risk Management, & New Products Committees. Mr. Martin has been listed as a principal of the General Partner since October 2014. Mr. Martin previously served as the Managing Director and Chief Operating Officer of Morgan Stanley Fund Services, a financial services firm, where his responsibilities included launching the Hedge Fund Administration business and being responsible for operations, fund accounting and administration, technology and compliance, from May 2004 through May 2006. Previously, Mr. Martin served as Managing Director — Institutional Investment Operations of Morgan Stanley Investment Management from January 1995 until April 2004, where his responsibilities included trading room support, portfolio administration, service provider management, and derivatives processing and control. From April 1994 through January 1995, Mr. Martin served as Senior Vice President and Head of Custody Operations for Fidelity Investments, a financial services firm. From October 1989 through April 1994, Mr. Martin served as Executive Director and Head of Global Operations for Morgan Stanley Trust Company, a financial services firm. Mr. Martin also served as Vice President — Information Technology for MS&Co., a financial services firm, from June 1984 through October 1989, where his responsibilities included acting as Senior Developer and Programming Manager — Prime Brokerage and Securities Clearance Systems, and as Part-time Manager — IT Training Program. From February 1984 through May 1984, Mr. Martin served as a Senior Analyst in the Financial Control Group of Shearson Lehman Brothers, Inc., a financial services firm. From October 1980 through January 1984, Mr. Martin served as a Senior Consultant — Management Information Consulting Division at Arthur Andersen & Co., an accounting firm, where his responsibilities included programming and programming supervisory roles at large governmental agencies. Mr. Martin received a B.S. in Business Administration — Finance from Georgetown University in May 1980 and an M.B.A. in Finance from New York University in June 1993.

Frank Smith, age 48, has been a Director of the General Partner since October 2014. Mr. Smith has also served as an Executive Director of Morgan Stanley Investment Management, a financial services firm, since August 2000, where his responsibilities include serving as Treasurer and Chief Financial Officer of Morgan Stanley Funds as well as Executive Director of U.S. Fund Administration. Mr. Smith has been listed as a principal of the General Partner since October 2014. Mr. Smith previously served as a senior manager of the audit group at PricewaterhouseCoopers, an accounting firm, from December 1997 to August 2000. Mr. Smith was responsible for managing the audits of multiple clients while at PricewaterhouseCoopers LLP. Prior to PricewaterhouseCoopers, Mr. Smith was a Fund Administration manager at BlackRock, Inc., a mutual fund complex, from July 1996 to December 1997. At BlackRock he oversaw multiple vendors who performed accounting services for the funds. From December 1994 to July 1996, Mr. Smith served as an audit manager at Coopers & Lybrand, an accounting firm, where he was responsible for managing multiple client audits. After college, Mr. Smith began his career at McGladrey & Pullen, LLP, certified public accountants, where he served as an audit manager from June 1987 to December 1994. At McGladrey & Pullen, he was responsible for managing multiple client audits. Mr. Smith received a B.S. in Accounting from St. John’s University in May 1987.

Feta Zabeli, age 54, has been a Director of the General Partner since October 2014. Mr. Zabeli is also Global Head of Risk for Morgan Stanley Investment Management’s Traditional Asset Management business where he is responsible for investment risk of all equity, fixed income, money market, multi-asset class and alternatives portfolios. He is also responsible for counterparty and quantitative model risk for the traditional asset management business. He joined Morgan Stanley in January 2012. Mr. Zabeli was appointed to the Board of Directors of MSIM Inc., an affiliate of the General Partner, effective January 30, 2015. Mr. Zabeli has been listed as a principal of the General Partner since October 2014. Mr. Zabeli was on garden leave in December 2011. From February 2006 to November 2011, Mr. Zabeli was Senior Vice President, and most recently Global Co-Head of Risk, for AllianceBernstein L.P., a global investment firm, with various risk management assignments in Hong Kong, Tokyo, London and New York. From August 2006 to April 2009, Mr. Zabeli was based in Hong Kong for AllianceBernstein as the Director of Risk Management for Asia Pacific. From April 2009 to July 2011, he was based in Tokyo for AllianceBernstein as both Director of Risk Management for Asia Pacific and Head of Risk Management for Japan. From July 2011 to November 2011, he was based in London for AllianceBernstein as Global Head of Operational & Credit/Counterparty Risk. In these roles at AllianceBernstein he was responsible for the full range of risk management functions including investment, operational and credit/counterparty risk. Prior to his Risk Management roles at Morgan Stanley and AllianceBernstein, Mr. Zabeli held positions as a managing director at Citigroup Asset Management, the asset management division of Citigroup, an international financial services company, from April 1998 to January 2006, where he worked as a quantitative research analyst and portfolio manager, and director at BARRA Inc., a global provider of risk analytic tools to investment institutions, from September 1993 to March 1998, where he developed risk models and applications. Mr. Zabeli received a B.S. in Aerospace Engineering from Rensselaer Polytechnic Institute in May 1982, an M.S. in Electrical Engineering from the University of Southern California in May 1988 and an M.B.A. from the University of California at Los Angeles in August 1992.

The Partnership has not adopted a code of ethics that applies to executive officers because it has no executive officers. In addition, the Partnership has not adopted any procedures by which investors may recommend nominees to the Partnership’s board of directors and has not established an audit committee because it has no board of directors.

Item 11. Executive Compensation.

The Partnership has no directors or officers. Its affairs are managed by the General Partner. As compensation for its services, the Partnership pays the General Partner ~~administrative~~a ~~fees~~General Partner fee, as described under “Item 1. Business.” For the year ended December 31, ~~2014~~2015, the General Partner earned $~~213~~162,~~165~~032 in ~~administrative~~General Partner fees. Morgan Stanley Wealth Management, an an affiliate of the General Partner, is the selling agent for the Partnership and receives an ongoing selling agent fee for such services, as described under “Item 1. Business.” For the year ended December 31, ~~2014~~2015, Morgan Stanley Wealth Management earned $~~417~~318,~~084~~457 in ongoing selling agent fees from the Partnership. As compensation for their services, the Partnership pays the Advisors management and incentive fees as described under “Item 1. Business.” For the year ended December 31, ~~2014~~2015, the Advisors earned $~~348~~252,~~740~~125 in management fees. There were no incentive fees earned by the Advisors for the year ended December 31, ~~2014~~2015. An Advisor will not be paid incentive fees until the Advisor recovers the net loss incurred and earns additional new trading profits for the Partnership.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

(a) Security ownership of certain beneficial owners. As of February 28 29, ~~2015~~2016, the Partnership knows of noone person who beneficially owns more than 5% of ~~the~~a Class of Redeemable Units outstanding.

(b) Security ownership of management. Under the terms of the Limited Partnership Agreement, the Partnership’s affairs are managed by the General Partner. The following table indicates securities owned by the General Partner as of December 31, 2014:

(1) Title of Class

(2) Name ofBeneficial Owner

(3) Amountand Natureof BeneficialOwnership

(4) Percent ofClasses

Class Z General Partner unit equivalents

General Partner

241.1440

1.7%

(1) Title of Class

(2) Name of
Beneficial Owner

(3) Amount
and nature
of Beneficial
Ownership

(4) Percent of
Classes

Class Z General Partner Redeemable Units

General Partner

192.1480

1.4%

5258

(a) Transactions with related persons. None.

(b) Review, approval or ratification of transactions with related persons. Not applicable.

(c) Promoters and certain control persons. MS&Co., CGM, Morgan Stanley Wealth Management and the General Partner could be considered promoters for purposes of ~~item~~Item 404(dc) of Regulation S-K. The nature and the amounts of compensation each promoter received or will receive, if any, from the Partnership are set forth under “Item 1. Business.” and “Item 11. Executive Compensation.”

Item 14. Principal Accountant Fees and Services.

(1) Audit Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by Deloitte & & Touche LLP (“Deloitte”) for the years ended December 31, ~~2014~~2015 and ~~2013~~2014 for the audit of the Partnership’s annual financial statements, review of financial statements included in the Partnership’s Forms 10-Q and 10-K and other services normally provided in connection with regulatory filings or engagements were:

2014	$73,300
2015	$	79,400
2013	$70,900
2014	$	73,300

(2) Audit-Related Fees. None.

(3) Tax Fees. InThe ~~the~~Partnership ~~last two fiscal years, Deloitte~~ did not ~~provide~~pay Deloitte any ~~professional~~amounts ~~services~~in ~~for~~2015 ~~tax~~and ~~compliance,~~2014 ~~tax advice or tax planning. The aggregate fees billed~~ for ~~each of the last two fiscal years for~~ professional services ~~rendered~~in byconnection ~~PricewaterhouseCoopers~~with ~~LLP for~~ tax compliance, ~~and~~ tax advice ~~given in the preparation of the Partnership’s Schedule K-1s~~, ~~the~~ ~~preparation of the Partnership’s Form 1065~~ and ~~preparation~~tax ofplanning. ~~all State Tax Returns were:~~

2014		$45,350
2013		$41,300

(4) All Other Fees. None.

(5) Not Applicable.

(6) Not Applicable.

5459

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a) (1) Financial Statements:

Statements of of Financial Condition at December 31, ~~2014~~2015 and ~~2013~~2014.

~~Condensed~~ Schedules of Investments at December 31, ~~2014~~2015 and ~~2013~~2014.

Statements of Income and Expenses for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013.

Statements of Changes in Partners’ Capital for the year ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013.

Notes to Financial Statements.

(2) Exhibits:

3.1(a)

Certificate of Limited Partnership as filed in the office of the Secretary of State of the State of Delaware on January 30, 2006 (filed as Exhibit 3.1(a) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(b)

Certificate of Amendment of the Certificate of Limited Partnership as filed in the office of the Secretary of State of the State of Delaware on September 24, 2008 (filed as Exhibit 3.1(b) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(c)

Certificate of Amendment of the Certificate of Limited Partnership as filed in the office of the Secretary of State of the State of Delaware on September 25, 2009 (filed as Exhibit 3.1(c) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(d)

Certificate of Amendment of the Certificate of Limited Partnership as filed in the office of the Secretary of State of the State of Delaware on June 29, 2010 (filed as Exhibit 3.1(d) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(e)

Certificate of Amendment of the Certificate of Limited Partnership as filed in the office of the Secretary of State of the State of Delaware on April 15, 2011 (filed as Exhibit 3.1(e) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

3.2(a)

Application for Authority as filed in the office of the Secretary of State of the State of New York on February 2, 2006 (filed as Exhibit 3.2(a) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(b)

Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on September 24, 2008 (filed as Exhibit 3.2(b) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(c)	Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on June 30, 2010 (filed as Exhibit 3.2(d) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(d)	Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on May 10, 2011 (filed as Exhibit 3.2(e) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(e)

Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on September 6, 2011 (filed as Exhibit 3.2(f) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(f)

Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on September 29, 2011 (filed as Exhibit 3.2(c) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(g)	Certificate of Amendment of the Application for Authority as filed in the office of the Secretary of State of the State of New York on August 12, 2013 (filed as Exhibit 3.2(g) to the quarterly report on Form 10-Q filed on August 14, 2013, and incorporated herein by reference)

3.3(a) Third Amended and Restated Limited Partnership Agreement (filed as Exhibit 3.3 to Amendment No. 1 to Form 10-12G/A filed on November 7, 2012, and incorporated herein by reference)

~~10.1~~(ab) ~~Second~~Amendment to the Third Amended and Restated ~~Management~~Limited Partnership Agreement ~~among~~(filed as Exhibit 3.1 to the ~~Partnership,~~Current ~~Ceres~~Report ~~Managed~~on ~~Futures~~Form ~~LLC~~8-K ~~and~~filed JJanuary E5, ~~Moody~~2016, &and ~~Company~~incorporated ~~LLC~~herein ~~(filed~~by ~~herewith~~reference)

10.1(ba) ~~Letter~~Second ~~from~~Amended and Restated Management Agreement among the ~~General~~Partnership, ~~Partner~~Ceres toManaged Futures LLC and J E Moody & Company LLC ~~extending~~(filed as Exhibit 10.1(a) to the ~~Management~~Annual ~~Agreement~~Report ~~from~~on ~~June~~Form ~~30,~~10-K ~~2014~~filed toon ~~June~~March 30, 2015, ~~(filed~~and ~~herewith~~incorporated herein by reference)

(b)	Amendment to the Second Amended and Restated Management Agreement among the Partnership, Ceres Managed Futures LLC and J E Moody & Company LLC (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on January 5, 2016, and incorporated herein by reference)

(c)	Letter from the General Partner to J E Moody & Company LLC extending the Management Agreement from June 30, 2015 to June 30, 2016 (filed herewith)

10.2(a)

Management Agreement among the Partnership, Ceres Managed Futures LLC and Krom River Trading A.G. and Krom River Investment Management (Cayman) Limited (filed as Exhibit 10.2(a) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(b) Amendment to the Management Agreement among the Partnership, Ceres Managed Futures LLC and Krom River Trading A.G. and Krom River Investment Management (Cayman) Limited (filed as Exhibit 10.1 to the ~~current~~Current ~~report~~Report on Form 8-K filed on October 7, 2013, and incorporated herein by reference)

10.3(a)

Management Agreement among the Partnership, Ceres Managed Futures LLC and Aventis Asset Management, LLC (formerly Misfit Financial Group, LLC) (filed as Exhibit 10.3(a) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(b)

Amendment to the Management Agreement among the Partnership, Ceres Managed Futures LLC and Aventis Asset Management, LLC (formerly Misfit Financial Group, LLC) (filed as Exhibit 10.3(b) to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

(c) Amendment No. 2 to the Management Agreement among the Partnership, Ceres Managed Futures LLC and Aventis Asset Management, LLC (formerly Misfit Financial Group, LLC) (filed as Exhibit 10.1 to the ~~current~~Current ~~report~~Report on Form 8-K filed on March 6, 2014, and incorporated herein by reference)

(d) Letter from the General Partner to Aventis Asset Management, LLC (formerly Misfit Financial Group, LLC) extending the Management Agreement from June 30, ~~2014~~2015 to June 30, ~~2015~~2016 (filed herewith)

10.54 Form of Customer Agreement between the Partnership, Ceres Managed Futures LLC and Citigroup Global Markets Inc. (filed as Exhibit 10.6 to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

10.65 ~~Commodity~~Alternative ~~Futures~~Investment ~~Customer~~Placement Agent Agreement between the Partnership, Ceres Managed Futures LLC and ~~MS&Co~~Morgan Stanley Smith Barney LLC (filed as Exhibit 10.,7 ~~effective~~to ~~October~~the General Form for Registration of Securities on Form 10 filed on June 29, ~~2013~~2012, ~~(filed~~and ~~herewith~~incorporated herein by reference)

10.86 Form of Subscription Agreement (filed as Exhibit 10.8 to the General Form for Registration of Securities on Form 10 filed on June 29, 2012, and incorporated herein by reference)

10.97(a) Escrow Agreement among Ceres Managed Futures LLC, Morgan Stanley Smith Barney LLC and The Bank of New York (filed as Exhibit 10.9(a) to Amendment No. 1 to the Form 10-12G/A filed on November 7, 2012, and incorporated herein by reference)

(b)	Amendment No. 5 to Escrow Agreement among Ceres Managed Futures LLC, Morgan Stanley Smith Barney LLC and The Bank of New York (filed as Exhibit 10.9(b) to Amendment No. 1 to the Form 10-12G/A filed on November 7, 2012, and incorporated herein by reference)

10.108(a) ~~Alternative~~Commodity ~~Investment~~Futures ~~Selling~~Customer ~~Agent~~ Agreement between the Partnership, ~~the General Partner~~ and ~~Morgan Stanley Wealth Management~~MS&Co., effective ~~March~~October 129, ~~2014~~2013 (filed as Exhibit 10.116 to the annual report on Form 10-K filed on March 2830, ~~2014~~2015, and incorporated herein by reference)

(b)	U.S. Treasury Securities Purchase Authorization Agreement between the Partnership and MS&Co., effective June 1, 2015 (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on November 4, 2015 and incorporated herein by reference)

10.9	Amended and restated Alternative Investment Selling Agent Agreement between the Partnership, the General Partner and Morgan Stanley Wealth Management, effective March 3, 2016 (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on March 8, 2016, and incorporated herein by reference)

10.10

Amended and Restated Master Services Agreement by and among the Partnership, the General Partner and SS&C Technologies, Inc. (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on August 6, 2015 and incorporated herein by reference)

31.1	Rule 13a-14(a)/15d-14(a) Certification (Certification of President and Director) (filed herewith)

31.2 Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer and Director) (filed herewith)

32.1	Section 1350 Certification (Certification of President and Director) (filed herewith)

32.2 Section 1350 Certification (Certification of Chief Financial Officer and Director) (filed herewith)

99.1	Financial Statements of MB Master Fund L.P.

99.2 Financial Statements of KRJEM Master Fund L.P.

99101.3INSXBRL ~~Financial~~Instance ~~Statements of JEM Master Fund L~~Document.P.

101.~~INS~~SCHXBRL ~~XBRL~~Taxonomy ~~Instance~~Extension Schema Document.

101.~~SCH XBRL~~ CALXBRL Taxonomy Extension ~~Schema~~Calculation Linkbase Document.

101.~~CAL~~LABXBRL ~~XBRL~~ Taxonomy Extension ~~Calculation~~Label Linkbase Document.

101.~~LAB~~PREXBRL ~~XBRL~~ Taxonomy Extension ~~Label~~Presentation Linkbase Document.

101.~~PRE~~DEFXBRL ~~XBRL~~ Taxonomy Extension ~~Presentation~~Definition Linkbase Document.

~~101.DEF~~62 ~~XBRL Taxonomy Extension Definition Linkbase Document.~~

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Commodity Advisors Fund L.P.

By:		Ceres Managed Futures LLC
		(General Partner)
By:		/s/ Patrick T. Egan
		Patrick T. Egan
		President & Director
		President and Director
		Date: March 30, 2015
		Date: March 28, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

/s/ Patrick T. Egan	/s/ ~~Kevin~~Feta ~~Klingert~~Zabeli	~~/s/ Alper Daglioglu~~
Patrick T. Egan	~~Kevin~~Feta ~~Klingert~~Zabeli	~~Alper Daglioglu~~
President and Director	Director	~~Director~~
Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015
Ceres Managed Futures LLC	Ceres Managed Futures LLC
/s/ Steven Ross	/s/ Colbert Narcisse	/s/ Jeremy Beal
Date: March 28, 2016	Date: March 28, 2016
Steven Ross	Colbert Narcisse	Jeremy Beal
/s/ Steven Ross	/s/ M. Paul Martin
Chief Financial Officer	Director	Director
Steven Ross	M. Paul Martin
(Principal Accounting Officer) Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015
Chief Financial Officer and Director	Director
/s/ M. Paul Martin	/s/ Harry Handler	/s/ Frank Smith
(Principal Accounting Officer)	Ceres Managed Futures LLC
M. Paul Martin	Harry Handler	Frank Smith
Ceres Managed Futures LLC	Date: March 28, 2016
Director	Director	Director
Date: March 28, 2016
Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015	Ceres Managed Futures LLC Date: March 30, 2015
/s/ Feta Zabeli
Feta Zabeli
Director
Ceres Managed Futures LLC
Date: March 30, 2015

Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Exchange Act by Registrants Which Have Not Registered Securities Pursuant to Section 12 of the Exchange Act.

Annual Report to Limited Partners

No proxy material has been sent to ~~Limited~~limited ~~Partners~~partners.

5663

Title of Class

Name and Address
of Beneficial Ownership

Amount and Nature of
Beneficial Ownership

Percent of Class

Class A Redeemable Units

MSB FBO Mr. Paul C Saunders
and Mrs. Patricia A Saunders JT TEN

333 East 91^st Street, Apt 32A

New York, NY 10128-5893

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