-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OpRbnRkWtAWk7zRDSofR3NNR1C5VEYokNKZ7FSMEgW2v/urbLknwsNR2uzVbV55G V3/jXwe3R0diHUqMprekbg== 0001027099-97-000006.txt : 19971117 0001027099-97-000006.hdr.sgml : 19971117 ACCESSION NUMBER: 0001027099-97-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: JWH GLOBAL TRUST CENTRAL INDEX KEY: 0001027099 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 364113382 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-22887 FILM NUMBER: 97719516 BUSINESS ADDRESS: STREET 1: C/O CIS INVESTMENTS INC STREET 2: 233 S WACKER DR STE 2300 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124604000 MAIL ADDRESS: STREET 1: C/O CIS INVESTMENTS INC STREET 2: 233 S WACKER DR SUITE 2300 CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: JWH GLOBAL PORTFOLIO TRUST DATE OF NAME CHANGE: 19961114 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1997 Commission File Number 333-16825 JWH GLOBAL TRUST (Exact name of registrant as specified in its charter) Delaware 36-4113382 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 233 South Wacker Drive, Suite 2300, Chicago, Illinois 60606 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (312)460-4000 Not Applicable (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Part I. Financial Information Item 1. Financial Statements Following are Financial Statements for the fiscal quarter ended September 30, 1997, and the additional time frames as noted: Fiscal Quarter Year to Date Fiscal Year Fiscal Quarter Year to Date Ended 9/30/97 To 9/30/97 Ended 12/31/96 Ended 9/30/96 To 9/30/96 -------------- -------------- -------------- -------------------------- Statement of Financial Condition X X Statement of Operations X X N/A N/A Statement of Changes in Partners' Capital X Statement of Cash Flows X N/A Notes to Financial Statements X JWH GLOBAL TRUST STATEMENTS OF FINANCIAL CONDITION UNAUDITED Sep 30, 1997 Dec 31, 1996 --------------- ------------- ASSETS Cash $0 $1,000 Equity in commodity futures trading accounts: Account balance 45,191,462 0 Unrealized gain on open futures and forwards contracts 1,546,714 0 --------------- ------------- 46,738,176 1,000 Interest receivable 149,351 0 Prepaid Initial O&O 616,805 0 --------------- ------------- Total assets $47,504,331 $1,000 =============== ============= LIABILITIES AND UNITHOLDERS' CAPITAL Liabilities: Accrued commissions due to CIS $568,094 $0 Accrued management fee 127,803 0 Accrued incentive fee 58,783 0 Accrued operating expenses 27,219 0 Redemptions payable 0 0 Selling and Offering Expenses Payable 43,043 0 --------------- ------------- Total liabilities 824,942 0 Unitholders' Capital: Beneficial owners ( 449,120.26 units outstan 46,205,726 817 at 9/30/97, 8.17 units outstanding at 12/31/96) (see Note 1) Managing owner (4,604.04 units outstanding 473,663 183 9/30/97 and 1.83 at 12/31/96) (see Note 1) --------------- ------------- Total unitholders' capital 46,679,389 1,000 --------------- ------------- Total liabilities and unitholders' capital $47,504,331 $1,000 =============== ============= In the opinion of management, these statements reflect all adjustments necessary to fairly state the financial condition of JWH Global Trust. (See Note 6) JWH GLOBAL TRUST STATEMENTS OF OPERATIONS UNAUDITED Jul 1, 1997 Jun 2, 1997* through through Sep 30, 1997 Sep 30, 1997 --------------- ------------- REVENUES Gains on trading of commodity futures and forwards contracts, physical commodities and related options: Realized gain (loss) on closed positions ($194,893) ($653,738) Change in unrealized gain (loss) on open positions 994,940 1,546,714 Interest income 373,497 429,697 Foreign currency transaction gain (loss) (45,933) (37,929) --------------- ------------- Total revenues 1,127,611 1,284,744 EXPENSES Commissions paid to CIS 497,286 568,094 Exchange fees 4,196 4,609 Management fees 309,168 353,025 Incentive fees 52,276 58,783 Operating expenses 89,706 104,957 --------------- ------------- Total expenses 952,632 1,089,468 --------------- ------------- Net profit (loss) $174,979 $195,276 =============== ============= PROFIT (LOSS) PER UNIT OF OWNERSHIP INTEREST $2.72 $2.88 =============== ============= (see Note 1) (see Note 1) * Commencement of Operations This Statement of Operations, in the opinion of management, reflects all adjustments necessary to fairly state the financial condition of JWH Global Trust. (See Note 6) JWH GLOBAL TRUST STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL From June 2 (commencement of operations) through September 30, 1997 UNAUDITED Additional Units Sold Beneficial Managing (see Note 1) Units* Owners Owner Total --------------- ------------- -------------- ------------- Unitholders' capital at January 1, 1997 8.17 $817 $183 $1,000 Redemption of Initial Owners (8.17) (817) (183) ($1,000) Additional Units Sold 457,755.33 46,879,951 470,000 47,349,951 (see Note 1) Net profit (loss) 191,613 3,663 195,276 Redemptions (see Note 1) (8,635.08) (865,838) (865,838) --------------- ------------- -------------- ------------- Unitholders' capital at September 30, 1997 449,120.26 $46,205,726 $473,663 $46,679,389 =============== ============= ============== ============= Net asset value per unit June 2, 1997 (see Note 1) 100 100 Net profit (loss) per unit (see Note 1) 2.88 2.88 ------------- -------------- Net asset value per unit September 30, 1997 $102.88 $102.88 * Units of Beneficial Ownership. This Statement of Changes in Unitholders' Capital, in the opinion of management, reflects all adjustments necessary to fairly state the financial condition of JWH Global Trust. (See Note 6) JWH GLOBAL TRUST STATEMENTS OF CASH FLOWS UNAUDITED Jun 2, 1997* through Sep 30, 1997 --------------- Cash flows from operating activities: Net profit (loss) $195,276 Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating activities: Change in assets and liabilities: Unrealized gain (loss) on open futures contracts (1,546,714) Interest receivable (149,351) Prepaid Organization and Offering Expenses (616,805) Accrued liabilities 781,899 Redemptions payable 0 Selling and Offering Expenses Payable 43,043 --------------- Net cash provided by (used in) operating activities (1,292,652) Cash flows from financing activities: Additional Units Sold 47,349,951 Unitholder redemptions (866,838) --------------- Net cash provided by (used in) financing activities 46,483,114 --------------- Net increase (decrease) in cash 45,190,462 Cash at beginning of period 1,000 --------------- Cash at end of period $45,191,462 =============== * Commencement of Operations This Statement of Cash Flows, in the opinion of management, reflects all adjustments necessary to fairly state the financial condition of JWH Global Trust. (See Note 6)
JWH GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997 (1) GENERAL INFORMATION AND SUMMARY JWH Global Trust (the "Trust") is a Delaware business trust organized on November 12, 1996 under the Delaware Business Trust Act. The business of the Trust is the speculative trading of commodity interests, including futures contracts on currencies, interest rates, energy and agricultural products, metals and stock indices, options on such futures contracts, and spot and forward contracts on currencies and precious metals ("Commodity Interests") pursuant to the trading instructions of an independent trading advisor. The managing owner of the Trust is CIS Investments, Inc., a Delaware corporation organized in June 1983 (the "Managing Owner"). The Managing Owner is registered as a commodity pool operator under the Commodity Exchange Act, as amended, and is responsible for administering the business and affairs of the Trust exclusive of trading decisions. The Managing Owner is an affiliate of Cargill Investor Services, Inc., the clearing broker for the Trust (the "Clearing Broker") and CIS Financial Services, Inc., which acts as the Trust's currency dealer ("CISFS"). Trading decisions for the Trust were made by an independent commodity trading advisor, John W. Henry & Company, Inc. The initial public offering of the Trust's units of beneficial interest ("Units") commenced on April 3, 1997 and concluded on September 23, 1997. The initial offering price was $100 per Unit until the initial closing of the Trust, and thereafter at the current Net Asset Value of the Trust on the last business day of the calendar month. The total amount of the initial offering was $50,000,000. On September 24, 1997, a registration statement was declared effective with the SEC to register $155,000,000 of additional Units. The Units are currently offered pursuant to a Prospectus dated September 26, 1997. A Post-Effective Amendment was declared effective with the SEC on October 20, 1997 to deregister $3,120,048.99 of Units which remained unsold upon the termination of the initial offering of the Units. As a result of the Units being offered at each month-end Net Asset Value, the total number of Units authorized for the Trust is not determinable and therefore is not disclosed in the financial statements. The initial closing of the Trust was on May 30, 1997 and the Trust commenced trading on June 2, 1997. The initial Beneficial Owners of the Trust, representing ownership of $1,000, were redeemed on May 30, 1997, prior to the commencement of trading. The minimum subscription size for the offering is $5,000 for individuals and $2,000 for trustees or custodians of eligible employee benefit plans and individual retirement accounts (subject to higher minimums in certain States); and $1,000 for existing investors in the Trust (the "Unitholders"). By September 30, 1997, a total of 457,755.33 Units were sold to Beneficial Owners of the Trust for an investment of $46,879,951 and 4,604.04 Units were sold to the Managing Owner of the Trust for an investment of $470,000, resulting in a total of 462,359.37 Units representing a total investment of $47,349,951 being sold in the offering period commencing April 3, 1997. The Managing Owner of the Trust advanced organization and offering costs of $650,000. The Trust reimbursed the Managing Owner for these costs. The Trust is amortizing these costs over 60 months. A Unitholder may cause the Trust to redeem any or all of such Unitholder's Units at Net Asset Value as of the last business day of any calendar month. Written redemption requests must be received by the Managing Owner no later than five business days prior to month-end (including the last business day of the month) to effect redemption as of such month-end. A Unit which is redeemed at or prior to the end of the eleventh full month after its sale will be assessed a redemption charge of 3% of the Net Asset Value per Unit as of the date of redemption. The Managing Owner may declare additional redemption dates by notice to the Unitholders. Redemption proceeds will generally be paid within ten business days after the month-end of redemption. The Trust's Third Amended and Restated Declaration and Agreement of Trust contains a full description of the Trust's redemption and distribution procedures. The Trust shall terminate on December 31, 2026 if none of the following occur prior to that date: (1) investors holding more than 50 percent of the outstanding Units notify the Managing Owner to dissolve the Trust as of a specific date; (2) withdrawal, insolvency, bankruptcy, retirement, resignation, expulsion or dissolution of the Managing Owner of the Trust; (3) bankruptcy or insolvency of the Trust; (4) decline in the aggregate Net Assets of the Trust to less than $2,500,000; (5) decline in the Net Asset Value per Unit to $50 or less; (6) dissolution of the Trust pursuant to the Third Amended and Restated Declaration and Agreement of Trust; or (7) any other event which shall make it unlawful for the existence of the Trust to be continued or require dissolution of the Trust. The Trust's Third Amended and Restated Declaration and Agreement of Trust contains a full description of the Trust's term and dissolution procedures. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the Trust conform to generally accepted accounting principles and to general practices within the commodities industry. The following is a description of the more significant of those policies which the Trust follows in preparing its financial statements. Financial Accounting Standards Board ("FASB") Interpretation No. 39 Reporting Reporting in accordance with FASB Interpretation No. 39 ("FIN 39") is not applicable to the Trust and the provisions of FIN 39 do not have any effect on the Trust's financial statements. Revenue Recognition Commodity futures contracts, forward contracts, physical commodities and related options are recorded on the trade date. All such transactions are reported on an identified cost basis. Realized gains and losses are determined by comparing the purchase price to the sales price when the trades are offset. Unrealized gains and losses reflected in the statements of financial condition represent the difference between original contract amount and market value (as determined by exchange settlement prices for futures contracts and related options and cash dealer prices at a predetermined time for forward contracts, physical commodities and their related options) as of the last business day of the quarter-end. CIS and CISFS credit the Trust, as of each month-end, with interest on the Trust's assets deposited with CIS and CISFS at 100% of the 91-day Treasury bill rate for deposits denominated in dollars and at the rates agreed between the Trust and CIS and CISFS for deposits denominated in other currencies. Commissions The Trust pays the Clearing Broker a monthly flat-rate brokerage commission at an annual rate of 6.5% (or approximately 0.54% per month) of the Trust's month-end assets after deduction of the management fee paid to the trading advisor (see section (3) below). Certain large investors are eligible to be charged a brokerage fee of 5%. Foreign Currency Transactions Trading accounts on foreign currency denominations are susceptible to both movements on underlying contract markets as well as fluctuation in currency rates. Foreign currencies are translated into U.S. dollars for closed positions at an average exchange rate for the quarter while quarter-end balances are translated at the quarter-end currency rates. The impact of the translation is reflected in the statement of operations. Statements of Cash Flows For purposes of the statements of cash flows, cash represents cash on deposit with the Clearing Broker and CISFS . (3) FEES Management fees are accrued and paid monthly and incentive fees are accrued monthly and paid quarterly. Trading decisions for the period of these financial statements were made by John W. Henry & Company, Inc. ("JWH"), the Trust's commodity trading advisor. Pursuant to an agreement between the Trust and JWH, JWH receives 0.33% of the month-end assets under its management after deduction of a portion of the brokerage commissions at a 1.25% annual rate (rather than the 6.5% annual rate). The Trust pays JWH a quarterly incentive fee of 15% of trading profits (after deduction of a portion of the brokerage commissions at a 1.25% annual rate, rather than the 6.5% annual rate) achieved on the assets of the Trust allocated by the Managing Owner to JWH's management. Trading profits are calculated on the basis of the overall performance of the Trust, not the performance of each Trading Program, utilized by JWH, considered individually. (4) INCOME TAXES No provision for Federal Income Taxes has been made in the accompanying financial statements as each beneficial owner is responsible for reporting income (loss) based on the pro rata share of the profits or losses of the Trust. The Trust is responsible for the Illinois Personal Property Replacement Tax based on the operating results of the Trust. Such tax amounted to $4,188 for the period ended September 30, 1997 and is included in operating expenses in the Statement of Operations. (5) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Trust was formed to speculatively trade Commodity Interests. It has commodity transactions and cash on deposit at its Clearing Broker. In the event that volatility of trading of other customers of the Clearing Broker impaired the ability of the Clearing Broker to satisfy its obligations to the Trust, the Trust would be exposed to off-balance sheet risk. Such risk is defined in Statement of Financial Accounting Standards No. 105 ("SFAS 105") as a credit risk. To mitigate this risk, the Clearing Broker, pursuant to the mandates of the Commodity Exchange Act, is required to maintain funds deposited by customers relating to futures contracts in regulated commodities in separate bank accounts which are designated as segregated customers' accounts. In addition, the Clearing Broker has set aside funds deposited by customers relating to foreign futures and options in separate bank accounts which are designated as customer secured accounts. Lastly, the Clearing Broker is subject to the Securities and Exchange Commission's Uniform Net Capital Rule which requires the maintenance of minimum net capital of at least 4% of the funds required to be segregated pursuant to the Commodity Exchange Act. The Clearing Broker has controls in place to make certain that all customers maintain adequate margin deposits for the positions which they maintain at the Clearing Broker. Such procedures should protect the Trust from the off-balance sheet risk as mentioned earlier. The Clearing Broker does not engage in proprietary trading and thus has no direct market exposure. The counterparty of the Trust for futures contracts traded in the United States and most non-U.S. exchanges on which the Trust trades is the Clearing House associated with the exchange. In general, Clearing Houses are backed by the exchange membership and will act in the event of non-performance by one of its members or one of the members' customers and as such should significantly reduce this credit risk. In the cases where the Trust trades on exchanges on which the Clearing House is not backed by the exchange membership, the sole recourse of the Trust for non-performance will be the Clearing House. The Trust holds futures and futures options positions on the various exchanges throughout the world. The Trust holds foreign exchange forward contracts with CISFS. CISFS acts as a broker to these transactions and deals only with bank counterparties having assets in excess of $100,000,000. As defined by SFAS 105, futures positions are classified as financial instruments. SFAS 105 requires that the Trust disclose the market risk of loss from all of its financial instruments. Market risk is defined as the possibility that future changes in market prices may make a financial instrument less valuable or more onerous. If the markets should move against all of the futures positions held by the Trust at the same time, and if the markets moved such that the CTA was unable to offset the futures positions of the Trust, the Trust could lose all of its assets and the Beneficial Owners would realize a 100% loss. The Trust has a contract with one CTA who makes all of the trading decisions. The CTA trades one program diversified among all commodity groups and another program diversified among the various futures contracts in the financials and metals group. The CTA trades on U.S. and non-U.S. exchanges. Cash was on deposit with the Clearing Broker and CISFS in each time period of the financial statements which exceeded the cash requirements of the Commodity Interests of the Trust. The following chart discloses the dollar amount of the unrealized gain or loss on open contracts related to Commodity Interests for the Trust as of September 30, 1997: COMMODITY GROUP UNREALIZED GAIN/(LOSS) AGRICULTURAL COMMODITIES (309,809) FOREIGN CURRENCIES (155,479) STOCK INDICES 263,950 ENERGIES (402,910) METALS 339,420 INTEREST RATE INSTRUMENTS 1,811,542 TOTAL 1,546,714 The range of maturity dates of these exchange traded open contracts is December of 1997 to September of 1998. The average open trade equity for the period of June 1, 1997 to September 30, 1997 was $1,710,145. The margin requirement at September 30, 1997 was $8,354,053. To meet this requirement, the Trust had on deposit with the Clearing Broker $39,332,537 in segregated funds, $5,529,705 in secured funds and $1,875,934 in non-regulated funds. (6) FINANCIAL STATEMENT PREPARATION The interim financial statements are unaudited but reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments consist primarily of normal recurring accruals. Results of operations for interim periods are not necessarily indicative of the operating results to be expected for the fiscal year. (7) INFORMATION PREVIOUSLY REPORTED ON FORM S-R During the fiscal quarter ended September 30, 1997, Units of the Trust were offered pursuant to two separate registration statements. Units were offered pursuant to the initial registration statement (No. 333-16825) until September 23, 1997. On September 24, 1997, a registration statement (No. 333-33937) was declared effective with the SEC to register $155,000,000 of additional Units. The information previously reported on Form S-R will be reported separately below for each registration statement. REGISTRATION STATEMENT N0. 333-16825 (subsequent report) Item 701(f): (1) The use of proceeds information is being disclosed for Registration Statement No. 333-16825, declared effective with the SEC on April 3, 1997. (2) The offering commenced on April 3, 1997. (4)(i) The offering concluded on September 23, 1997. On October 20, 1997 a Post-Effective Amendment was declared effective with the SEC to deregister $3,120,048.99 of Units which remained unsold upon the termination of the initial offering of the Units. (iv) For the account of the issuer, the amount sold in the offering totaled $46,879,951 and the aggregate offering price of the amount sold was $46,879,951. (vi) The net offering proceeds to the issuer, after deducting the total expenses previously reported in Item 9 of Form SR, totaled $46,879,951. (vii)From the effective date of the registration statement to September 30, 1997, the amount of net offering proceeds to the issuer used for Commodity Futures and Forward Trading (as a direct or indirect payment to others) totaled $46,879,951. REGISTRATION STATEMENT NO. 333-33937 (initial report) Item 701(f): (1) The use of proceeds information is being disclosed for Registration Statement No. 333-33937, declared effective with the SEC on September 24, 1997. (2) The offering commenced on September 26, 1997. (3) The offering has not terminated before any securities were sold. (4)(i) The offering has not terminated. (ii) The name of the managing underwriter is Cargill Investor Services, Inc. (iii)The title of the security registered is Units of Beneficial Interest. (iv) For the account of the issuer, the amount of Units of Beneficial Interest registered is $155,000,000; the aggregate price of the offering amount registered is $155,000,000; the amount sold in the offering as of September 30, 1997 is $0; and the aggregate offering price of the amount sold as of September 30, 1997 is $0. This information is not applicable for the account(s) of any selling security holder(s). (v) From the effective date of the registration statement to September 30, 1997, the amount of expenses incurred for the issuer's account in connection with the issuance and distribution of the securities registered is $0. (vi) The net offering proceeds to the issuer, after deducting the total expenses reported in (v) above, totaled $0. (vii)From the effective date of the registration statement to September 30, 1997, the amount of net offering proceeds to the issuer used for Commodity Futures and Forward Trading (as a direct or indirect payment to others) totaled $0. (viii)The use of proceeds as described above does not represent a material change in the use of proceeds described in the prospectus. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation Fiscal Quarter ended September 30, 1997 The Trust recorded a gain of $174,979 or $2.72 per Unit for the third quarter of 1997. Trading for the Trust commenced on June 2, 1997, therefore there were only four months of trading activity for the Trust during the fiscal year of 1997 and there is no comparative to prior year activity. For the four month period ended September 30, 1997, the Trust posted a gain of $195,276 or $2.88 per Unit. The Trust experienced gains during the first month of the quarter as a result of strong profits in global interest rate positions, metals and some currencies. During the second month of the quarter, the Trust suffered losses in U.S and European interest rates, currencies, crude oil and metals, while the third month of the quarter experienced losses in foreign exchange, agricultural markets, currencies and metals. At September 30, 1997, John W. Henry & Company, Inc. was managing 100% of the Trust's assets in two trading programs, the Original Investment Program and the Financial and Metals Portfolio. In July, positions in U.S. Treasuries resulted in strong gains as did positions in Japanese Government bonds. In the currency markets, investors traded German marks and Swiss francs for U.S. dollars, pushing the dollar to new highs against both currencies. Except for sugar, positions in all other agricultural commodities traded resulted in losses. Silver and gold prices fell reflecting the sale by the Australian central bank of 60% of its gold reserves; the positions held by the Trust in both metals were profitable. The Trust recorded a gain of $1,436,591.42 or $6.65 per Unit in July. In August, crude oil prices were pressured downward and traded erratically in part due to the recent return of Iraqi oil to world markets. Trading volatility also accounted for losses in the global interest rate sector and metals. Price reversals in the U.S. 30-year bond and U.S. and Australian 10-year notes resulted in losses for the Trust. While losses occurred in the Deutsche mark and Swiss franc, gains were made in the Japanese yen and the Nikkei stock index. Positions in coffee, cotton and corn also resulted in gains for the Trust. However, these gains did not offset the losses incurred and the Trust recorded a loss of $702,857.20 or $2.41 per Unit in August. In September, performance was negatively impacted by positions in agricultural markets, currencies, metals and foreign exchange. Positions in global interest rate markets and the Japanese Nikkei were slightly profitable. Except for the Australian dollar, positions in all other currencies traded resulted in losses. Small gains in cotton failed to offset losses in coffee, sugar and other agricultural markets. Positions in silver and copper resulted in gains, offsetting losses in gold. The Trust recorded a loss of $558,754.99 or $1.50 per Unit in September. During the quarter there were 235,891.50 additional Units sold to the Beneficial Owners for an investment of $24,678,671 and 2,105.63 Units sold to the Managing Owner for an investment of $220,000, representing a total of 237,997.13 additional Units sold for a total investment of $24,898,671. Investors redeemed a total of 197.05 Units during the quarter. At the end of the quarter there were 449,120.26 Units outstanding owned by the Beneficial Owners and 4,604.04 Units outstanding owned by the Managing Owner. During the fiscal quarter ended September 30, 1997, the Trust had no credit exposure to a counterparty which is a foreign commodities exchange or to any counterparty dealing in over the counter contracts which was material. See Footnote 5 of the Financial Statements for procedures established by the Managing Owner to monitor and minimize market and credit risks for the Trust. In addition to the procedures set out in Footnote 5, the Managing Owner reviews on a daily basis reports of the Trust's performance, including monitoring of the daily net asset value of the Trust. The Managing Owner also reviews the financial situation of the Trust's Clearing Broker on a monthly basis. The Managing Owner relies on the policies of the Clearing Broker to monitor specific credit risks. The Clearing Broker does not engage in proprietary trading and thus has no direct market exposure which provides the Managing Owner assurance that the Trust will not suffer trading losses through the Clearing Broker. Effective September 12, 1997, Donald J. Zyck resigned as Secretary and Treasurer of CIS Investments, Inc., the Managing Owner of the Trust. Effective September 13, 1997, Rebecca S. Steindel was elected Secretary and Richard A. Driver was elected Treasurer of CIS Investments, Inc. Fiscal Quarter ended June 30, 1997 The Trust recorded a gain of $20,296.37 or $0.16 per Unit for the second quarter of 1997. Trading for the Trust commenced on June 2, 1997, therefore there was only one month of trading activity for the Trust during the second quarter and there is no comparative to prior year activity. The Trust experienced gains due to profitable positions in metals, interest rates and stock indices. At June 30, 1997, John W. Henry & Company, Inc. was managing 100% of the Trust's assets in two trading programs, the Original Investment Program and the Financial and Metals Portfolio. In June, gold prices fell to a four-year low as the U.S. dollar strengthened and inflation indicators remained favorable. Positions in both gold and silver were profitable. Continued uncertainty surrounding the European currency union benefited bond markets outside the EMU circle of nations. In the currency markets, the Swiss monetary authority's determination to keep the franc from appreciating against major currencies succeeded in pushing the price of that currency down. After reaching a 20-year high in May, coffee prices fell steadily in June on news of higher world exports and concerns about the impact of high prices on demand. The Trust recorded a gain of $20,296.37 or $.16 per Unit in June. During the quarter there were 224,362.25 additional Units sold, including 2,498.40 Units sold to the Managing Owner representing a total of $22,451,280. Investors redeemed a total of 8,438.02 Units during the quarter (not including the redemption by the initial Beneficial Owners of the Trust, representing ownership of $1,000). At the end of the quarter there were 215,924.22 Units outstanding (including 2,498.40 Units owned by the Managing Owner). During the fiscal quarter ended June 30, 1997, the Trust had no credit exposure to a counterparty which is a foreign commodities exchange or to any counterparty dealing in over the counter contracts which was material. Part II. OTHER INFORMATION Item 1. Legal Proceedings The Trust and its affiliates may from time to time be parties to various legal actions arising in the normal course of business. The Managing Owner believes that there are no proceedings threatened or pending against the Trust or any of its affiliates which, if determined adversely, would have a material adverse effect on the financial condition or results of operations of the Trust. Item 2. Changes in Securities None Item 3. Defaults Upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders None Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K a) Exhibits None b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned and thereunto duly authorized. JWH GLOBAL TRUST Date: November 13, 1997 By: CIS Investments, Inc., its Managing Owner By: /s/ Richard A. Driver Richard A. Driver Treasurer (Duly authorized officer of the Managing Owner and the Principal Financial Officer of the Managing Owner) EX-27 2
5 This schedule contains summary financial information extracted from JWH Global Trust for the third quarter of 1997 and is qualified in its entirety by reference to such 10-Q. 0001027099 JWH GLOBAL TRUST 3-MOS DEC-31-1996 SEP-30-1997 46,738,176 0 766,156 0 0 47,504,331 0 0 47,504,331 824,942 0 0 0 0 46,679,389 47,504,331 0 1,127,611 0 952,632 0 0 0 174,979 0 174,979 0 0 0 174,979 2.72 2.72
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