10-Q 1 jwh2ndtqtr10q2005.htm JWH 2ND QTR 2005 10-Q JWH GLOBAL TRUST 2005 2nd Qtr 2005 10-Q

UNITED STATES 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 June 30, 2005
Commission File Number: 000-22887

JWH GLOBAL TRUST
(Exact name of registrant as specified in its charter)

Delaware	36-4113382
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

233 South Wacker Drive
Suite 2300
Chicago, IL 60606
(Address of principal executive offices) (Zip Code)

(312) 460-4000
(Registrant's telephone number, including area code)

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.
|X| Yes |_| No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
|_| Yes |X| No

The number of units outstanding, as of June 30, 2005, is 2,304,347.03.

TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
	Statements of Financial Condition (unaudited)
	Statements of Operations (unaudited)
	Statement of Changes in Unitholders' Capital (unaudited)
	Condensed Schedule of Investments (unaudited)
	Notes to Financial Statements

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

Item 5. Subsequent Event


PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Unregistered Sales of Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Other Information

Item 6. Exhibits

SIGNATURES

EXHIBIT 31.01 - Certification of Principal Executive Officer

EXHIBIT 31.02 - Certification of Principal Financial Officer

EXHIBIT 32.01 - Section 1350 Certifications

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

(Following are Financial Statements for the fiscal quarter ended June 30, 2005 and the additional time frames as noted:

	Fiscal Quarter Ended 06/30/05	Year to Date Ended 06/30/05	Fiscal Year Ended 12/31/04	Fiscal Quarter Ended 06/30/04	Year to Date Ended 06/30/04

Statements of Financial Condition	X		X

Statements of Operations	X	X		X	X

Statement of Changes in Partners' Capital		X

Notes to Financial Statements	X

JWH GLOBAL TRUST

Statements of Financial Condition

		June 30, 2005		Dec 31, 2004
		(unaudited)
ASSETS
Assets:
Equity in commodity futures trading accounts:
Cash on deposit with Brokers	$	298,650,612		312,053,398
Unrealized gain on open contracts		27,562,040		22,802,365

		326,212,652		334,855,763

Receivable for units sold		1,989,122		7,210,442
Interest receivable		729,415		561,543

Total assets	$	328,931,189		342,627,748

LIABILITIES AND UNITHOLDERS' CAPITAL
Liabilities:
Accrued commissions	$	1,615,980		1,667,412
Accrued management fees		544,364		558,459
Accrued incentive fees		-		4,531,999
Accrued ongoing offering expenses		-		136,802
Accrued operating expenses		16,226		90,000
Redemptions payable		6,664,880		3,602,667

Total liabilities		8,841,450		10,587,339

Unitholders' capital:
Beneficial owners ( 2,280,393.89 and 2,211,539.65 units outstanding at June 30, 2005 and December 31, 2004, respectively)		316,762,587		328,509,395
Managing owner (23,953.14 and 23,771.70 units outstanding at June 30, 2005 and December 31, 2004)		3,327,152		3,531,014

Total unitholders' capital		320,089,739		332,040,409

Total liabilities and unitholders' capital	$	328,931,189	$	342,627,748

See accompanying notes to financial statements.

JWH GLOBAL TRUST

Statements of Operations

(unaudited)

		April 1, 2005 through June 30, 2005	Jan 1, 2005 through June 30, 2005	April 1, 2004 through June 30, 2004	Jan 1, 2004 through June 30, 2004
		Current Qtr	Year to Date	Current Qtr	Year to Date
Revenues:
Gain (loss) on trading of commodity contracts:
Realized gain (loss) on closed positions	$	12,533,710	(15,989,818)	(38,067,806)	(23,106,452)
Change in unrealized loss on open positions		18,655,004	4,759,675	(9,820,533)	(18,675,790)
Interest income		2,089,452	4,028,317	709,550	1,217,169
Foreign currency transaction gain (loss)		2,420	(543,925)	(279,731)	(212,566)

Total revenues		33,280,586	(7,745,751)	(47,458,520)	(40,777,639)

Expenses:
Commissions		4,506,070	8,900,828	3,495,095	6,908,207
Exchange, clearing and NFA fees		38,143	75,476	29,728	54,716
Management fees		1,515,157	2,992,929	1,176,799	2,323,814
Incentive fees		-	-	-	861,423
Ongoing offering expenses		241,278	608,528	292,462	575,374
Operating expenses		97,931	193,447	65,000	110,000

Total expenses		6,398,579	12,771,208	5,059,084	10,833,534

Net income (loss)	$	26,882,007	(20,516,959)	(52,517,604)	(51,611,173)

Income (loss) per unit of beneficial ownership interest *	$	11.48	(9.63)	(29.15)	(28.01)
Income (loss) per unit of managing ownership interest *	$	11.48	(9.63)	(29.15)	(28.01)

* Represents the increase (decrease) in unit value during the period.

See accompanying notes to financial statements.

JWH GLOBAL TRUST

Statement of Changes in Unitholders' Capital

From January 1, 2005 through June 30, 2005

(unaudited)

	Units*		Beneficial Owners	Managing Owner	Total

Unitholders' capital at January 1,2005	2,211,539.65	$	328,509,395	3,531,014	332,040,409

Net loss			(20,289,737)	(227,222)	(20,516,959)

Unitholders' contributions	229,133.74		29,457,390	23,360	29,480,750
Unitholders' redemptions	(160,279.50)		(20,914,461)	-	(20,914,461)

Unitholders' capital at June 30, 2005	2,280,393.89	$	316,762,587	3,327,152	320,089,739

Net asset value per unit January 1,2005		$	148.54	148.54

Net loss per unit			(9.63)	(9.63)

Net asset value per unit at June 30, 2005		$	138.91	138.91

* Units of Beneficial Ownership.

See accompanying notes to financial statements.

JWH GLOBAL TRUST L.P. Condensed Schedule of Investments June 30, 2005 (unaudited)
	Number of contracts		Principal/ notional value		Value/open trade equity
Long positions
Futures positions (2.56%)
Agriculture	2,367	$	35,593,234		(1,784,318)
Interest Rates	12,330		2,277,410,644		7,675,946
Metals	1,111		56,760,973		53,192
Indices	1,245		69,733,848		905,005
Energy	1,285		74,659,647		1,329,886

			2,514,158,346		8,179,711

Forward positions (-3.25%)
Australian Dollar	3		55,697,759		(274,967)
British Pound	8		296,221,126		(4,327,179)
Canadian Dollar	2		58,922,710		852,111
European Euro	7		30,957,462		14,780
Japanese yen	12		232,289,141		(6,678,413)
Swiss Franc	2		7,742,357		10,807

			681,830,555		(10,402,861)

Total long positions		$	3,195,988,901		(2,223,150)

Short positions
Futures positions (-0.12%)
Agriculture	330	$	13,100,065		454,198
Metals	619		32,502,131		(867,181)
Indices	52		1,563,120		17,159

			47,165,316		(395,824)

Forward positions (9.42%)
Australian Dollar	2		24,877,876		41,385
British Pound	10		242,766,024		4,024,479
Canadian Dollar	2		3,952,232		(9,402)
European Euro	9		537,812,343		6,526,349
Japanese yen	13		584,154,597		15,346,060
Swiss Franc	4		180,640,356		4,252,143

			1,574,203,428		30,181,014

Total short positions		$	1,621,368,744		29,785,190

Total open contracts (8.61%)				$	27,562,040
Cash on deposit with brokers (93.30%)					298,650,612
Liabilities in excess of other assets (-1.91%)					(6,122,913)

Net assets (100.0%)				$	320,089,739

See accompanying notes to financial statements.

JWH GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 2005
(unaudited)

(1) General Information and Summary

JWH Global Trust (the Trust), a Delaware statutory trust organized on November 12, 1996, was formed to engage in the speculative trading of futures contracts on currencies, interest rates, energy and agricultural products, metals and stock indices, spot and forward contracts on currencies and precious metals, and exchanges for physicals pursuant to the trading instructions of independent trading advisors. The Managing Owner of the Trust is CIS Investments, Inc. (CISI). The clearing broker is Cargill Investor Services, Inc. (Clearing Broker or CIS), an affiliate of CISI. The broker for forward contracts is CIS Financial Services, Inc. (CISFS or Forwards Currency Broker), also an affiliate of CISI. The Clearing Broker and the Forwards Currency Broker collectively will be referred to as the Brokers.

Units of beneficial ownership of the Trust commenced selling on April 3, 1997 and trading began on June 2, 1997. The initial amount offered for investment was $50,000,000. On September 24, 1997, July 2, 2003, and again on November 1, 2004, the Trust registered an additional $155,000,000, $300,000,000, and $500,000,000, respectively, for further investment and continued the offering. By June 30, 2005, a total of 3,531,097.14 units representing an investment for $455,119,498.39 of beneficial ownership interest had been sold in the combined offerings. In addition, during the offerings, the Managing Owner purchased a total of 26,914.33 units, representing a total investment of $3,558,587.56. Refer to the JWH Global Trust prospectus for further details of the offering.

The Trust will be terminated on December 31, 2026, if none of the following occur prior to that date: (1) beneficial owners holding more than 50% of the outstanding units notify the Managing Owner to dissolve the Trust as of a specific date; (2) disassociation of the Managing Owner with the Trust; (3) bankruptcy of the Trust; (4) a decrease in the net asset value to less than $2,500,000; (5) a decline in the net asset value per unit to $50 or less; (6) dissolution of the Trust; or (7) any event that would make it unlawful for the existence of the Trust to be continued or require dissolution of the Trust.

(2) Summary of Significant Accounting Policies

The accounting and reporting policies of the Trust conform to accounting principles generally accepted in the United States of America and to general practices in the commodities industry. The following is a description of the more significant of those policies that the Trust follows in preparing its financial statements.

Revenue Recognition

Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains on open contracts 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 year or as of the last date of the financial statements.

The Trust earns interest on its assets on deposit at the Brokers at 100% of the 91-day Treasury bill rate for deposits denominated in U.S. dollars, and at the rates agreed between the Trust and CIS and CISFS for deposits denominated in other currencies.

Redemptions

A beneficial owner may cause any or all of his or her units to be redeemed by the Trust effective as of the last trading day of any month of the Trust based on the Net Asset Value per unit on such date on five days written notice to the Managing Owner. Payment will be made within ten business days of the effective date of the redemption. Any redemption made during the first eleven months of investment is subject to a 3% redemption penalty. Any redemption made in the 12th month of investment or later will not be subject to any penalty. The Trust's Sixth Amended and Restated Declaration and Agreement of Trust contains a full description of redemption and distribution policies.

Ongoing Offering Costs

In the first five months, the Trust has been charged at a rate of 0.50% of average month-end net assets for ongoing offering costs, which was based on historical expenditures. Current expenditures have been accruing at a lower rate, therefore, no expenses were charged to the Trust in June and the amount charged in subsequent months may also be reduced to reflect the actual costs paid by CISI on behalf of the Trust.

Commissions

Commodity brokerage commissions are typically paid for each trade transacted and are referred to as "round-turn commissions". These commissions cover both the initial purchase (or sale) and the subsequent offsetting sale (or purchase) of a commodity futures contract. The Trust does not pay commodity brokerage commissions on a per-trade basis, but rather pays monthly flat-rate Brokerage Fees. Effective July 1, 2003, CIS lowered this fee from the annual rate of 6.5% (or approximately 0.542% per month) to 6.0% (or 0.50% per month) of the Trust's month-end assets after reduction of the Management Fee. CIS receives these Brokerage Fees irrespective of the number of trades executed on the Trust's behalf. The amount paid to CIS is reduced by exchange fees paid by the Trust.

Certain large investors are eligible for a "Special Brokerage Fee Rate" of 4.5% per year. As of June 30, 2005, there were no such eligible investors in the Trust.

Foreign Currency Transactions

Trading accounts in foreign currency denominations are susceptible to both movements in the underlying contract markets as well as fluctuation in currency rates. Translation of foreign currencies into U.S. dollars for closed positions are translated at an average exchange rate for the year, while year-end balances are translated at the year-end currency rates. The impact of the translation is reflected in the statements of operations.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(3) Fees

Management fees are accrued and paid monthly, 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) utilizing three of its trading programs, the JWH GlobalAnalytics® Family of Programs, the Financial and Metals Portfolio, and the G-7 Currency Portfolio.

Under signed agreement, JWH receives a monthly management fee of 0.167% (a 2% annual rate) of the Trust's month-end net assets calculated after deduction of a portion of the Brokerage Fee at an annual rate of 1.25% of month-end Trust net assets, but before reduction for any incentive fee or other costs and before inclusion of purchases and redemptions for the month.

Also, under signed agreement, the Trust pays to JWH a quarterly incentive fee equal to 20% of the new trading profits, if any, of the Trust. The incentive fee is based on the overall performance of the Trust, not individually in respect of the performance of the individual programs utilized by the Trust. This fee is also calculated by deducting a portion of the Brokerage Fees at an annual rate of 1.25%.

(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. Generally, for both Federal and state tax purposes, trusts, such as the JWH Global Trust, are treated as partnerships.

(5) Trading Activities and Related Risks

The Trust engages in the speculative trading of U.S. and foreign futures contracts, and forward contracts (collectively derivatives). These derivatives include both financial and non-financial contracts held as part of a diversified trading strategy. The Trust is exposed to both market risk, the risk arising from changes in the market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

The purchase and sale of futures requires margin deposits with a Futures Commission Merchant (FCM). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act (CEAct) requires an FCM to segregate all customer transactions and assets from the FCM's proprietary activities. A customer's cash and other property, such as U.S. Treasury Bills, deposited with an FCM are considered commingled with all other customer funds subject to the FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited.

The Trust has cash on deposit with an affiliate interbank market maker in connection with its trading of forward contracts. In the event of interbank market maker's insolvency, recovery of the Trust assets on deposit may be limited to account insurance or other protection afforded such deposits. In the normal course of business, the Trust does not require collateral from such interbank market maker. Due to forward contracts being traded in unregulated markets between principals, the Trust also assumes a credit risk, the risk of loss from counter party non-performance.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Trust is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short.

Net trading results from derivatives for the periods ended June 30, 2005 and 2004, are reflected in the statements of operations and equal gain from trading less brokerage commissions. Such trading results reflect the net gain arising from the Trust's speculative trading of futures contracts and forward contracts.

The notional amounts of open contracts at June 30, 2005, as disclosed in the Condensed Schedule of Investments, do not represent the Trust's risk of loss due to market and credit risk, but rather represent the Trust's extent of involvement in derivatives at the date of the statement of financial condition.

The beneficial owners bear the risk of loss only to the extent of the market value of their respective investments.

(6) Financial Highlights

The following financial highlights show the Trust's financial performance for the six-month period ended June 30, 2005. Total return is calculated as the change in a theoretical beneficial owner's investment over the entire period and is not annualized. Total return is calculated based on the aggregate return of the Trust taken as a whole.

Net Asset Value per unit At December 31, 2004	$	148.54
Loss per unit		(9.63)
Net Asset Value per unit At June 30, 2005	$	138.91
Total Return:
Total return before incentive fee		(6.48)%
Less incentive fee allocation		0.00%
Total return		(6.48)%
Ratio to average net assets:
Net loss		(6.76)%
Expenses:
Expenses:		4.21%
Incentive fees		0.00%
Total expenses		4.21%

The net loss and expense ratios are computed based upon the weighted average net assets for the Trust for the six-month period ended June 30, 2005. The amounts are not annualized.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(a) Capital Resources

The Trust's capital resources fluctuate based upon the purchase and redemption of units and the gains and losses of the Trust's trading activities. The amount of assets invested in the Trust generally does not affect its performance, as typically this amount is not a limiting factor on the positions acquired by JWH, and the Trust's expenses are primarily charged as a fixed percentage of its asset base, however large.

The Trust's involvement in the futures and forward markets exposes the Trust to both market risk - the risk arising from changes in the market value of the futures and forward contracts held by the Trust - and credit risk - the risk that another party to a contract will fail to perform its obligations according to the terms of the contract. The Trust is exposed to a market risk equal to the value of the futures and forward contracts purchased and theoretically unlimited risk of loss on contracts sold short. JWH monitors the Trust's trading activities and attempts to control the Trust's exposure to market risk by, among other things, refining its trading strategies, adjusting position sizes of the Trust's futures and forward contacts and re-allocating Trust assets to different market sectors. The Trust's primary exposure to credit risk is its exposure to the non-performance of the Forwards Currency Broker. The Forwards Currency Broker generally enters into forward contracts with large, well-capitalized institutions and then enters into a back-to-back contract with the Trust. The Trust also may trade on exchanges that do not have associated clearinghouses whose credit supports the obligations of its members and operate as principals markets, in which case the Trust will be exposed to the credit risk of the other party to such trades.

The Trust's trading activities involve varying degrees of off-balance sheet risk whereby changes in the market values of the futures and forward contracts underlying the financial instruments or the Trust's satisfaction of the obligations may exceed the amount recognized in the statement of financial condition of the Trust.

The Trust borrows only to a limited extent and only on a strictly short-term basis in order to finance losses on non-U.S. dollar denominated trading positions pending the conversion of the Trust's dollar deposits. These borrowings are at a prevailing short-term rate in the relevant currency. They have been immaterial to the Trust's operation to date and are expected to continue to be so.

(b) Liquidity

The Trust's assets are held in brokerage accounts with CIS and CISFS. Except in unusual circumstances, the Trust should be able to close out any or all of its open trading positions and liquidate any or all of its holdings quickly and at market prices. This should permit JWH to limit losses as well as reduce market exposure on short notice should its programs indicate reducing market exposure.

The Trust earns interest on 100% of the Trust's average daily balances on deposit with CIS or CISFS, as the case may be, during each month at the average 91-day Treasury bill rate for that month in respect of deposits denominated in dollars or at the applicable rates in respect of deposits denominated in currencies other than dollars (which may be zero in some cases). For the fiscal quarter ended June 30, 2005, CIS and CISFS had paid or accrued to pay interest of $4,028,734 to the Trust. For the fiscal quarter ended June 30, 2004, CIS and CISFS had paid or accrued to pay interest of $1,217,169 to the Trust.

Most United States commodity exchanges limit the amount of fluctuation in commodity futures contract prices during a single trading day by regulations. These regulations specify what are referred to as "daily price fluctuation limits" or "daily limits". The daily limits establish the maximum amount the price of a futures contract may vary either up or down from the previous day's settlement price at the end of a trading session. Once the daily limit has been reached in a particular commodity, no trades may be made at a price beyond the limit. Positions in the commodity could then be taken or liquidated only if traders are willing to effect trades at or within the limit during the period for trading on such day. Because the "daily limit" rule only governs price movement for a particular trading day, it does not limit losses. In the past, futures prices have moved the daily limit for numerous consecutive trading days and thereby prevented prompt liquidation of futures positions on one side of the market, subjecting commodity futures traders holding such positions to substantial losses for those days.

It is also possible for an exchange or the CFTC to suspend trading in a particular contract, order immediate settlement of a particular contract, or direct that trading in a particular contract be for liquidation only.

(c) Results of Operations

The Trust's success depends on JWH's ability to recognize and capitalize on major price movements and other profit opportunities in different sectors of the world economy. Because of the speculative nature of its trading, operational or economic trends have little relevance to the Trust's results, and its past performance is not necessarily indicative of its future results. The Managing Owner believes, however, that there are certain market conditions - for example, markets with major price movements - in which the Trust has a better opportunity of being profitable than in others.

JWH's programs do not predict price movements. No fundamental economic supply or demand analysis is used in attempting to identify mispricings in the market, and no macroeconomic assessments of the relative strengths of different national economies or economic sectors is made. Instead, the programs apply proprietary computer models to analyze past market data, and from this data alone attempt to determine whether market prices are trending. Technical traders such as JWH base their strategies on the theory that market prices reflect the collective judgment of numerous different traders and are, accordingly, the best and most efficient indication of market movements. However, there are frequent periods during which fundamental factors external to the market dominate prices.

If JWH's models identify a trend, they signal positions which follow it. When these models identify the trend as having ended or reversed, these positions are either closed out or reversed. Due to their trend-following character, JWH's programs do not predict either the commencement or the end of a price movement. Rather, their objective is to identify a trend early enough to profit from it and to detect its end or reversal in time to close out the Trust's positions while retaining most of the profits made from following the trend.

The performance summaries set forth below outline certain major price trends which JWH's programs have identified for the Trust during the first quarter of fiscal years 2005 and 2004. The fact that certain trends were captured does not imply that others, perhaps larger and potentially more profitable trends, were not missed or that JWH will be able to capture similar trends in the future. Moreover, the fact that the programs were profitable in certain market sectors in the past does not mean that they will be so in the future.

The performance summaries are an outline description of how the Trust performed in the past, not necessarily any indication of how it will perform in the future. Furthermore, the general causes to which certain trends are attributed may or may not in fact have caused such trends, as opposed to simply having occurred at about the same time. While there can be no assurance that JWH will be profitable even in trending markets, markets in which substantial and sustained price movements occur offer the best profit potential for the Trust.

Fiscal Quarter ended June 30, 2005

The Trust recorded a net income of $26,882,007 or $11.48 per unit in the first quarter of 2005. As of June 30, 2005, the Trust had gained 38.91% since its inception in June 1997.

On June 30, 2005, JWH was managing 100% of the Trust's assets. Approximately 30% of the assets were allocated to each of the JWH GlobalAnalytics® Family of Programs and the G-7 Currency Portfolio. Approximately 40% of the Trust's assets were allocated to JWH's Financial and Metals Portfolio.

The Trust's overall performance was negative for the month of April. The Trust's underperformance was driven by the Federal Reserve changing its view on inflationary pressures. After higher energy prices showed a pickup in the US inflation rate in March, new economic data released in April showing inflationary pressures may not be as strong as previously thought forced the Fed to change its view. The fixed income sector posted positive returns during the month. The majority of the sector's gains came from the strength in Germany's and Japan's fixed-income markets. The yield on the German benchmark 10-year bond held near a record low after an industry survey showed manufacturing in Europe contracted. Japanese government bond yields held near 14-month lows on expectations that slowing economic growth in the U.S. will spread to Asia because of waning demand for the region's exports. The largest gain in this sector was achieved in the Japanese government bond, while the largest loss occurred in the eurodollar. The stock indices sector was slightly positive for the month as the world's equity markets traded lower. The Trust was able to profit from the decline in the Nasdaq e-mini, but the profits were held back by the combined losses suffered in the Eurostoxx and Nikkei. The currency sector was the most unprofitable sector during April for the Trust due to the strength of both the Japanese yen and the Canadian dollar / Japanese yen cross. Adding to the underperformance was the fact that the Swiss franc rallied as the Swiss government left its growth forecast for 2005 unchanged. The largest gain in this sector was achieved in the euro/British pound cross, while the largest loss occurred in the Japanese yen. The energy sector also contributed to the Trust's underperformance during the month. Energies, which had been trending higher, experienced a sudden turnaround as supplies increased and OPEC boosted output. The sector came under additional pressure amid speculation over slowing economic growth in the U.S., Europe and Japan due to high energy prices. All components of this sector were negative with the largest loss coming from London gas oil. The metals sector was unprofitable for the month. LME aluminum and LME copper had the largest losses within the sector, while gold and silver also added to the sector's losses as currency-related volatility plagued the precious metal markets. All components of this sector were negative. The Trust was unprofitable in the agriculture sector for the month as a result of the instability of the NY coffee market. The largest gain in this sector was achieved in cotton, while the largest loss occurred in NY coffee. Overall, the Trust recorded a loss of (6.40)% for the month.

The Trust's performance was positive for the month of May. The currency and fixed-income sectors led profitability with robust gains that were more than enough to offset lackluster returns in the other sectors. The currency sector was the Trust's strongest performer for the month, as the euro fell to a seven-month low against the U.S. dollar and weakened against most other major currencies. France's rejection of the European Union constitution was the catalyst for the euro's dramatic move lower. The largest gain in this sector was achieved in the euro, while the largest loss occurred in the euro/British pound cross. The fixed-income sector was the Trust's other solid performer, as both European and American bonds rose during the month. The benchmark German 10-year bund rose to a record high, as market conjecture grew that the European Central Bank (ECB) would have to cut interest rates as the European economy slowed. U.S. Treasuries also rallied on diminished inflation fears and the 10-year note broke 4% for the first time since February. The largest gain in this sector was achieved in the bund, while the only loss occurred in the Eurodollar. The energy sector underperformed for the month as a result of volatility, which dominated trading throughout the sector. Natural gas was the lone profitable market within the sector. Energy markets weakened for most of the month and reversed itself towards the end of the month when crude oil stockpiles fell for the first time in five weeks.. The largest loss occurred in London gas oil. The Trust's performance in the metals sector was slightly positive during the month as volatility in various markets limited the Trust's ability to achieve returns. The Trust was able to benefit as gold traded near a three-month closing low as the U.S. dollar strengthened. The largest gain in this sector was achieved in gold, while the largest loss occurred in LME copper. Performance in the agriculture sector was negative for the month as trading in cotton, N.Y. coffee and CBOT wheat affected returns. Cotton fell almost 13 percent from April's highs as supply outpaced demand and wheat strengthened on concerns that hot weather would hurt U.S. crops. The largest gain in this sector was achieved in London coffee, while the largest loss occurred in cotton. Indices were negative for the month. Most of the world indices were higher on the month, which was the cause of the sector's underperformance. All components of this sector were negative with the largest loss coming from the NASDAQ e-mini. Overall, the Trust recorded a gain of 7.95% for the month.

The Trust's performance was positive for the month of June. The currency and fixed income sectors led profitability on the strength of the U.S. dollar and the global fixed income markets. These gains were mainly due to the U.S. Federal Reserve raising interest rates another quarter point to 3.25 percent. Hindering performance was volatility in the metals and agriculture sectors. The currency sector was the Trust's strongest performer for the month. The U.S. dollar posted its largest quarterly gain against the euro since 2001 and rose against the yen as the market anticipated the quarter point increase by the Federal Reserve on June 30th. The dollar also benefited from the yield advantage against the Japanese yen, Swiss franc and the euro. Also boosting the sector's performance was the weakness in the British pound against the U.S. dollar. The largest gain in this sector was achieved in the Japanese yen, while the largest loss occurred in the British pound/Japanese yen cross. The fixed income sector was the Trust's other solid performer, as global bond markets continued to rally. The majority of the sector's gains came from the strength in both Germany's and Japan's fixed income markets. The largest gain in this sector was achieved in the bund, while the largest loss occurred in the Eurodollar. The energy sector was profitable for the month as volatility dominated these markets. The entire sector rallied during the first half of the month as expectations increased that global demand for oil would reach a record 86.4 million barrels a day in the 4th quarter. Most components of this sector were positive; however the sectors performance was hindered by the losses in natural gas. Metals were negative for the month as volatility hurt this sector's performance. Gold rose for the majority of the month and then fell towards the end of the month as the U.S. dollar strengthened and the U.S. Federal Reserve raised interest rates. All components of this sector were negative with the largest loss coming from gold. Performance in the agriculture sector was down for the month as trading in cotton, wheat and soybeans hindered returns. Gains in NY coffee were not enough to offset the combined negative performance experienced in the rest of the sector. Performance was slightly positive in indices during the month. Overall, stocks fell during the month as the Federal Reserve raised its benchmark interest rate for the ninth time this year. The largest gain in this sector was achieved in the EuroStoxx 50, while the largest loss was in the Nasdaq E-Mini. Overall, the Trust recorded a gain of 7.89% for the month.

During the quarter there were 72,578.27 units sold to the beneficial owners for an investment of $9,178,395. Beneficial owners redeemed a total of 98,644.05 units during the quarter. The Managing Owner redeemed a total of 0 units during the quarter. At the end of the quarter there were 2,280,393.89 units outstanding owned by the Beneficial Owners and 23,953.14 units outstanding owned by the Managing Owner.

During the fiscal quarter ending June 30, 2005, the Trust had no material credit exposure to a counterparty, which is a foreign commodity exchange, or to any counterparties dealing in over the counter contracts.

Fiscal Quarter ended June 30, 2004

The Trust recorded a net loss of $52,517,604 or $(29.15) per unit for the second quarter of 2004. As of June 30, 2004, the Trust had gained 21.11% since its inception in June 1997.

On June 30, 2004, JWH was managing 100% of the Trust's assets. Approximately 30% of the assets were allocated to each of the JWH GlobalAnalytics® Family of Programs and the G-7 Currency Portfolio. Approximately 40% of the Trust's assets were allocated to JWH's Financial and Metals Portfolio.

The second quarter of 2004 did not produce any meaningful trends with the possible exception of the energy markets. The lack of price trends in other markets was a result of the confusion in financial markets as analysts attempted to anticipate the major central banks' exit strategy from their highly accommodative monetary policy of the past two years.

There were two main themes dominating the financial markets in April. First, the emerging strength of the U.S. economy led to market speculation that the Federal Reserve may begin raising interest rates in the near term. The effects of this speculation have been the strengthening of the U.S. dollar and tepid support for global equity indices. Second, the country with the fastest growing economy, China, decided to rein in growth to avoid creating potentially dangerous financial bubbles like the ones it faced a decade ago. The Chinese Central Bank mandate to start limiting available credit and raising domestic interest rates reduced consumption of basic commodities, which diminished the recent vigor in the base metals and grain markets. Energies were profitable for the Trust in April. Concerns about the continued violence in the Middle East and increased global consumer demand helped to maintain prices at their current lofty levels. The Trust's positions in crude oil and related products were positive. Natural gas positions were the only component of the Trust's portfolio with negative performance. The agricultural sector was negative for April. The grain markets traded in a volatile fashion, reacting to both continued strong demand in some areas and possibly reduced demand by China as well as the recent strength of the U.S. dollar. Cotton and London sugar had the best performance in the sector while wheat had the largest loss for the Trust. The fixed-income sector was negative in April. Fixed-income markets, particularly in the U.S., were affected by the improvement of the economy and by statements made by members of the Federal Reserve, leading to market speculation that interest rates may be raised sooner than anticipated. This sector registered no positive components for the Trust with the largest losses in the Euro Bund and U.S. 30-year bond. The currency sector was unprofitable in April. The U.S. dollar strengthened against most major currencies in response to advances in U.S. job creation, while consumer confidence and manufacturing activity appeared to be waning in Germany, exerting downward pressure on the Euro. The Swiss franc and Euro were the best performers, while the Japanese yen was the detractor from the Trust's performance. Indices positions for the Trust were negative in April. Of the companies in the Standard & Poor's 500 Index reporting earnings, 78% of them surpassed analysts' forecasts. Japanese equity markets were strong all month. U.S. and some European stock markets faltered later in the month. This sector registered no positive components, with the largest loss coming from the Eurostoxx 50 contract. The metals sector was unprofitable for the Trust in April. Precious metal investors liquidated long positions, which had been a hedge against the current negative real rate of return environment in the US.

Overall, the Trust was down for the month of May. Improving global economies created expectations that central banks may raise interest rates to moderate growth and curtail an increase in inflation. China continued to try to rein in growth by reducing available credit and money supply. Uncertainty dominated the financial markets, preventing strong trends from emerging. Energies were profitable for the Trust in May. Energy prices continued to surge higher due to supply concerns and increased geopolitical risks raised concerns about supply disruptions. China's increasing appetite for petroleum also placed strains on available production. Saudi Arabia's offer to increase production had little effect in stabilizing the price of crude oil. All of the Trust's positions in this sector were positive, with London gas oil being the best performer. The fixed-income sector was positive in May. The U.S. economy continued to show signs of improvement with fears of rising inflation diminishing. The best result was achieved in the Euro Bund. The largest losses occurred in Japanese government bond and the Australian 10-year bond. The currency sector was unprofitable in May. The U.S. dollar was heavily influenced by the release of improving economic numbers and revised expectations for continued growth. The best results for the Trust from this sector were achieved in the British pound / Japanese yen cross and the Australian dollar. The largest detractors from performance were the Japanese yen and the Swiss franc. The global equity markets continued to struggle. World GDP continued at a strong pace; yet concerns over rising interest rates and energy prices reduced enthusiasm for stocks. This sector registered no positive components with the largest loss coming from the Nikkei. The agricultural sector was negative for May. Coffee, the best performer, surged higher due to fears of frost in Brazil. Live cattle made large gains after the USDA expressed uncertainties about reinstating Canadian cattle imports to the U.S. Corn and soybeans had the largest losses. The metals sector was unprofitable for the Trust in May. Prices fell lower for most of the month, coming under pressure with prospects that China's demand for raw materials will weaken as its economy slows. The Trust's largest loss came from aluminum.

Overall, the Trust was negative for the month of June. The fixed-income sector was negative for June. U.S. interest rates were heavily influenced by the outcome of the Federal Open Market Committee meeting at the end of the month, and whether it would raise the Federal Funds rate by 25 or 50 basis points. Interest rates in Japan rose during the month on expectations that the Japanese economy will extend its longest expansion since 1997. The foreign exchange sector was negative for June. The U.S. dollar, after weakening mid-month against most major currencies, ended the month with little change. The Japanese yen strengthened against most currencies, including the U.S. dollar, as prospects for a continued expanding economy in Japan took hold. The energy sector was negative for June. The energy markets remained very volatile, with a bias towards higher prices. However, the wide price ranges made trend following difficult. Crude oil prices and related products remained robust as a result of strong growth in the U.S. and China, and continued geopolitical tensions in the Middle East. The agricultural sector was negative for June. The grain markets faced downward price pressure for most of the month as a result of China's decreased demand. The stock indices and metals sectors were positive for the Trust for June. Base metals initially moved lower this month. However, low levels of global inventories of base metals propelled prices higher by the end of month. Stock indices appeared to be reacting to recent information that implies a sterile macro economic outlook.

During the quarter there were 324,614.95 units sold to the beneficial owners for an investment of $41,513,412. Beneficial owners redeemed a total of 42,093.44 units during the quarter. The Managing Owner redeemed a total of 0 units during the quarter. At the end of the quarter there were 1,997,645.14 units outstanding owned by the Beneficial Owners and 21,743.03 units outstanding owned by the Managing Owner.

During the fiscal quarter ending June 30, 2004, the Trust had no material credit exposure to a counterparty, which is a foreign commodity exchange, or to any counterparties dealing in over the counter contracts.

Fiscal Quarter ended March 31, 2005

The Trust recorded a net loss of $47,398,966 or ($21.11) per unit in the first quarter of 2005. As of March 31, 2005, the Trust had gained 27.43% since its inception in June 1997.

On March 31, 2005, JWH was managing 100% of the Trust's assets. Approximately 30% of the assets were allocated to each of the JWH GlobalAnalytics® Family of Programs and the G-7 Currency Portfolio. Approximately 40% of the Trust's assets were allocated to JWH's Financial and Metals Portfolio.

The Trust's performance was negative in January. While both the fixed-income and agriculture sectors had gains for the month, they weren't enough to offset the losses in other sectors. The Trust's underperformance was driven by the strength of the US dollar, which rebounded from last year's weakening trend. The dollar's sudden turnaround was the dominant factor that drove most market sectors during the month, and therefore resulted in the overall loss for the program. The weak US dollar trend, which had dominated the markets during the second half of last year, began to reverse itself as market expectations of a Yuan revaluation by the Chinese central bank began to diminish. The Canadian dollar/Japanese yen cross was the only positive contributor to the month, while the largest loss was in the euro. Trading in both metals and indices was also negative during the month. The loss in metals was due to the weakening of both gold and aluminum. Gold, which has recently had a strong inverse relationship with the US dollar, came under pressure as the US dollar strengthened throughout the month. Aluminum also added to the Trust's losses as supply increases in Shanghai put pressure on the market. The Trust's returns in the indices sector further hindered performance. The loss in indices resulted from a sell off in world equity markets. The largest gain in the indices sector was achieved in the Eurostoxx 50, while the largest loss occurred in the Nasdaq e-mini. Higher prices in energies led to negative performance for the Trust in this sector. In addition to the events in the Middle East, weather dominated the sector's price action. Brent crude was the only positive contributor of this sector, while the largest loss came from natural gas. The agricultural sector provided positive returns for the month of January. Wheat helped returns as prices fell to a 20-month low. Corn boosted returns slightly as prices fell to the lowest level since June 2001. The largest gain in the agricultural sector was achieved in wheat, while the largest loss occurred in cotton. The fixed income was also positive for the Trust for the month. Japanese Government bonds (JGBs) rose during the month after Japanese government reports showed household spending and industrial production fell. The largest gain was achieved in the JGBs, while the largest loss occurred in Australian 10-year bond. Although January underperformed, it is these types of markets that have provided the catalyst historically for long-term trends to emerge. Overall, the Trust recorded a loss of (9.54)% for the month.

The Trust's performance was negative in February. Gains in both the indices and energy sectors weren't enough to offset the combined losses in the other sectors traded. The Trust's underperformance was driven by the apparent end to some long-term trends in the global fixed-income market and the unfavorable performance in the currency sector. A significant portion of February's losses was directly related to the fixed-income sector as the European, Japanese and U.S. bond markets sold off. The catalyst for the dramatic moves higher in world interest rates was the cumulative effect of various events. On February 10th, the U.S. 10-year Treasury note fell after jobless claims unexpectedly declined, exports rose, and the U.S. government sold $14 billion 10-year notes at a higher-than-expected yield. On February 16th, Fed Chairman Alan Greenspan's testimony prepared for the Senate Banking Committee added pressure to the sector and long-term rates declined despite rate hikes over the last year. Two days later, the release of a higher-than-expected Producer Price Index in the U.S. helped to spark inflation fears worldwide. The largest gain was achieved in the Eurodollar, while the largest loss occurred in the Japanese government bond. Currencies were the other main contributor to the Trust's losses. The U.S. dollar rose to a three-month high against the yen after a Commerce Department report showed the U.S. trade deficit narrowed in January. Further adding to the yen's weakness were reports that Japan had officially fallen into a recession for the fourth time since 1991. Additional losses in this sector occurred during the middle of month as the Swiss franc rose against the U.S. dollar. The largest gain was achieved in the Australian/Japanese yen cross, while the largest loss occurred in the Japanese yen. The energy sector had positive returns and was the Trust's best performing sector. Energies rallied as commodity prices surged to a 24-year high. London gas oil and crude oil led performance after the U.S. government reported an unexpected decline in U.S. oil stockpiles. In addition, the International Energy Agency raised its prediction for global consumption. All components of this sector were positive with the largest gain achieved in London gas oil. The Trust's three other sectors, indices, metals, and agriculture all had relatively little effect on overall performance during the month. Indices posted gains as the Nikkei rallied. The only loss in this sector was in the Nasdaq e-mini. The metals sector posted negative returns. The largest gain in this sector was achieved in aluminum, while the largest loss occurred in gold. Lastly, the agricultural sector was flat. Overall, the Trust recorded a loss of (5.63)% for the month.

The Trust's performance was positive for the month of March. The energy sector exhibited moderate returns, and the agricultural sector also contributed to the Trust's positive performance. The combined positive performance in both of these sectors was able to offset the losses suffered in the other sectors. The energy sector was the Trust's best performing sector as crude oil and gasoline surged to near all-time highs on news that demand may outpace supply during the peak summer months. A Goldman Sachs prediction that crude oil prices could spike to as high as $105 per barrel also bolstered the rise in oil prices. All components of this sector were positive with the largest gain coming from London gas oil. Currencies were the most unprofitable sector for the Trust during the month. The single most influential factor driving performance was the U.S. dollar. The dollar began the month in a weakening trend as the U.S. trade deficit widened to its second highest level ever. However, this trend reversed as the price of oil soared, the yield on the 10-year note rose to its highest level in seven months, and the Federal Reserve increased borrowing costs by a quarter percentage point. The largest gain in this sector was achieved in the Japanese yen, while the largest loss occurred in the British pound. The Trust was unprofitable in the fixed income sector for the month, as European and Domestic markets sold off and the Japanese bond markets rallied. Increases in energy prices and inflation expectations were the catalyst for the dramatic move higher in most of the world interest rates. In Japan, bonds rallied amid speculation that exports to the U.S. would drop. Additionally, Japanese fixed-income gained on increased signs that its economy is struggling to recover from a fourth recession since 1991. The largest gain in this sector was achieved in the Eurodollar, while the largest loss occurred in the bund. Metals were unprofitable during March as gold and silver, which tend to have an inverse relationship with the U.S. dollar, were driven by the volatility in the U.S. dollar. The Trust did benefit as LME aluminum rose to a 10-year high, however not enough to offset the combined losses in gold and silver. Performance in indices was down slightly for the month as equity markets weakened worldwide. Higher bond yields and oil prices made equities less attractive to investors as inflationary pressures started to weigh on the global economy. The largest gain was achieved in the Nasdaq e-mini, while the largest loss occurred in the Nikkei. The Trust's performance in the agricultural sector was slightly profitable for the month. The Trust was able to benefit from rising New York coffee prices as production declined and reserves fell to their lowest level in 15 years. Overall, the gains achieved in the energy and agricultural sectors were enough to offset the combined losses in the various other sectors. Overall, the Trust posted a gain of .50% for the month.

During the quarter there were 156,555.52 units sold to the beneficial owners for an investment of $20,278,995. Beneficial owners redeemed a total of 61,635.92 units during the quarter. The Managing Owner redeemed a total of 0 units during the quarter. At the end of the quarter there were 2,306,459.25 units outstanding owned by the Beneficial Owners and 23,771.70 units outstanding owned by the Managing Owner.

During the fiscal quarter ending March 31, 2005, the Trust had no material credit exposure to a counterparty, which is a foreign commodity exchange, or to any counterparties dealing in over the counter contracts.

Fiscal Quarter ended March 31, 2004

The Trust recorded a net profit of $906,431 or $1.14 per unit in the first quarter of 2004. As of March 31, 2004, the Trust had gained 50.26% since its inception in June 1997.

The Trust had an auspicious start in January and February but in March the Trust gave back much of the previous gains. On March 31, 2004, JWH was managing 100% of the Trust's assets. Approximately 30% of the assets were allocated to each of the JWH GlobalAnalytics® Family of Programs and the G-7 Currency Portfolio. Approximately 40% of the Trust's assets were allocated to JWH's Financial and Metals Portfolio.

Overall, the Trust was positive for the month of January. The worldwide trend of interest rates moving lower continued from December. The long Japanese 10-year bond and the Euro Bund positions had the best performance for the fixed income sector, while the U.S. 30-year bond had the largest loss. For the first half of the month, the weakening U.S. dollar trend continued against most major currencies. The long Japanese yen and the British pound positions made the greatest contributions to profits, while the Swiss franc had the largest loss. Stock indices in Europe, the U.S. and Japan maintained their upward trend for most of the month on positive economic growth and a favorable interest rate environment. The Eurostoxx posted the largest profit, while the Osaka Nikkei posted a loss. The upward trend in crude prices and related products continued in a volatile fashion. Crude oil and heating oil posted the best sector gains. The price of gold has been highly correlated with the Euro; therefore it was higher initially at the beginning of the month, but finished lower at the end. Long copper, aluminum and silver positions had the best performance, while gold was the biggest detractor from profits. The agricultural sector was positive for January, primarily on the performance of corn, soybeans and coffee. Overall, the Trust recorded a 1.07% gain of $2,217,924 or $1.60 per unit in January.

Overall, the Trust was positive for the month of February. Interest rates continued to move lower in G7 nations due to benign inflationary pressures. The best results in the sector were achieved in the long Euro bunds, Japanese 10-year bond and the U.S. 10-year note and 30-year bond positions. Energies, with the exception of natural gas, remained on an upward trend because of supply concerns. The U.S. dollar, which had been weakening against most major currencies, found strength mid-month and reversed its five-month downtrend. The best performance for this sector came from the British pound and the Euro/British pound cross. The short Japanese yen and Swiss franc positions recorded the largest losses. Base metals continued the strong move upward due to low inventory levels, while precious metals followed currencies and reversed course during the month. The best performance for this sector came from copper, followed by silver and aluminum. Gold posted a loss for the month. Despite exhibiting a degree of volatility, most equity indices ended the month close to unchanged. Overall, the Trust recorded a 4.54% gain of $10,165,199 or $6.86 per unit in February.

Overall, the Trust was down for the month of March. The month was dominated by increased geopolitical risks, which consequently led to a reduction in speculative market positions. In March, the most influential market factors for the Trust were the effects of Japan's fiscal year end. The Bank of Japan, through intervention in foreign exchange markets, bolstered the U.S. dollar against the Japanese yen which in turn propelled Japanese equities and interest rates. The only profitable trade in this sector was the Euro/Pound cross. The largest losses came from the Japanese yen, British pound and the Euro. The U.S. employment data showed a paltry rise in jobs created during February, sending bond prices higher and interest rates lower. Interest rates in the ECB community fell as the terrorist attack in Spain dampened confidence in local economies. The biggest change in interest rates occurred in Japan, where rates actually increased. The Euro bund, U.S. 10-year and 30-year bonds were profitable while the largest loss for the sector was incurred in the Japanese 10-year bond. Metals, agriculture, and energies all were profitable sectors for the Trust but could not overcome the losses in interest rates and currencies. Overall, the Trust recorded a 4.64% loss of $11,476,691 or $7.32 per unit in March.

During the quarter there were 380,983.44 units sold to the beneficial owners for an investment of $58,139,432. Beneficial owners redeemed a total of 46,967.88 units during the quarter. The Managing Owner redeemed a total of 32.78 units during the quarter. At the end of the quarter there were 1,715,123.63 units outstanding owned by the Beneficial Owners and 21,743.03 units outstanding owned by the Managing Owner.

During the fiscal quarter ending March 31, 2004, the Trust had no material credit exposure to a counterparty, which is a foreign commodity exchange, or to any counterparties dealing in over the counter contracts.

(d) Off-Balance-Sheet Arrangements; Disclosure of Contractual Obligations

There have been no changes with respect to the Trust's off-balance-sheet arrangements (as defined in Regulation S-K 303(a)(4)(ii)) or disclosure of contractual obligations as reported in the Trust's Annual Report on Form 10-K for fiscal year 2004.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material change with respect to market risk since the "Quantitative and Qualitative Disclosures About Market Risk" was made in the Form 10-K of the Trust dated December 31, 2004.

Item 4. Controls and Procedures

Under the supervision and with the participation of the management of CIS Investments, Inc., the Managing Owner of the Trust, including the Managing Owner's Chief Executive Officer and Chief Financial Officer, the Trust has evaluated the effectiveness of the design and operation of its disclosure controls and procedures as of the end of the period covered by this quarterly report, and, based on their evaluation, the Chief Executive Officer and Chief Financial Officer of the Managing Owner have concluded that these disclosure controls and procedures are effective. There were no significant changes in the Trust's internal controls over financial reporting or in other factors that could materially affect these controls subsequent to the date of their evaluation.

Item 5. Subsequent Event

On June 22, 2005, Cargill, Incorporated ("Cargill") and Refco Group Ltd., LLC ("Refco") announced that they had entered into a definitive agreement for Refco to acquire the global brokerage operations of Cargill's subsidiary, Cargill Investor Services, Inc. ("CIS"). CIS is the owner of CISI. After the acquisition closes, Refco will become the owner of CISI and Refco's subsidiary, Refco, LLC, will become the futures broker for the Trust. The acquisition will close upon receipt of necessary regulatory approvals and satisfaction of other contractual closing conditions.

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. Unregistered Sales of Securities and Use of Proceeds

	a)	None
	b)	The Trust permits unitholders to redeem units at the end of each month at the Net Asset Value per unit on the redemption date. The redemption of units has no impact on the net asset value of the units that remain outstanding and units may not be reissued once they are redeemed.

The following table summarizes the redemptions by unitholders during the second quarter of 2005:

Month	Units Redeemed	Redemption Date NAV per Unit
April	26,082.41	119.27
May	24,581.80	128.75
June	47,979.85	138.91
Total	98,644.06

Item 3. Defaults Upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders