10-Q 1 sf16020q.txt WORLD MONITOR TRUST -- SERIES A -- FORM 10-Q 3/28/03 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 28, 2003 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ______________________ Commission file number: 0-25785 WORLD MONITOR TRUST--SERIES A -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Delaware 13-3985040 -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) One New York Plaza, 13th Floor, New York, New York 10292 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212) 778-7866 N/A -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check CK 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 _CK_ No __ Indicate by check CK whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes __ No _CK_ PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS WORLD MONITOR TRUST--SERIES A (a Delaware Business Trust) STATEMENTS OF FINANCIAL CONDITION (Unaudited)
March 28, December 31, 2003 2002 --------------------------------------------------------------------------------------------------- ASSETS Cash in commodity trading accounts $5,105,987 $5,000,833 Net unrealized gain (loss) on open futures contracts (54,648) 109,011 Accrued interest receivable 6,348 -- ---------- ------------ Total assets $5,057,687 $5,109,844 ---------- ------------ ---------- ------------ LIABILITIES AND TRUST CAPITAL Liabilities Commissions payable $ 29,853 $ 32,545 Redemptions payable 31,977 -- Management fees payable 8,006 8,628 ---------- ------------ Total liabilities 69,836 41,173 ---------- ------------ Commitments Trust capital Limited interests (48,652.661 and 51,247.230 interests outstanding) 4,932,898 5,015,625 General interests (542.000 interests outstanding) 54,953 53,046 ---------- ------------ Total trust capital 4,987,851 5,068,671 ---------- ------------ Total liabilities and trust capital $5,057,687 $5,109,844 ---------- ------------ ---------- ------------ Net asset value per limited and general interest $ 101.39 $ 97.87 ---------- ------------ ---------- ------------ --------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these statements.
2 WORLD MONITOR TRUST--SERIES A (a Delaware Business Trust) Condensed Schedules of Investments (Unaudited)
March 28, 2003 December 31, 2002 -------------------------------- -------------------------------- Net Unrealized Net Unrealized Gain (Loss) Gain (Loss) as a % of Net Unrealized as a % of Net Unrealized Futures Contracts Trust Capital Gain (Loss) Trust Capital Gain (Loss) ------------------------------------------------------------------------------------------------------------- Futures contracts purchased: Interest rates $ (889) $ 242,903 Currencies 15,785 264,113 Commodities (138,829) (78,007) -------------- -------------- Net unrealized gain (loss) on futures contracts purchased (2.48)% (123,933) 8.46% 429,009 -------------- -------------- Futures contracts sold: Currencies (12,975) (223,100) Commodities 82,260 (96,898) -------------- -------------- Net unrealized gain (loss) on futures contracts sold 1.39 69,285 (6.31) (319,998) ------ -------------- ------ -------------- Net unrealized (loss) gain on futures contracts (1.09)% $ (54,648) 2.15% $ 109,011 ------ -------------- ------ -------------- ------ -------------- ------ -------------- Forward currency contracts purchased 0.00% $ 0 .14% $ 7,124 Forward currency contracts sold 0.00 0 (.14)% (7,124) ------ -------------- ------ -------------- Net unrealized gain on forward contracts 0.00% $ 0 0.00% $ 0 ------ -------------- ------ -------------- ------ -------------- ------ -------------- Settlement Currency--Futures Contracts British pound 0.00% $ 0 .96% $ 48,688 Euro 0.00 0 1.80 91,105 Australian dollar 0.00 0 .48 24,298 Japanese yen .32 15,785 0.00 0 U.S. dollar (1.41) (70,433) (1.09) (55,080) ------ -------------- ------ -------------- Total (1.09)% $ (54,648) 2.15% $ 109,011 ------ -------------- ------ -------------- ------ -------------- ------ -------------- Settlement Currency--Forward Contracts U.S. dollar 0.00% $ 0 0.00% $ 0 ------ -------------- ------ -------------- ------ -------------- ------ -------------- ------------------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these statements.
3 WORLD MONITOR TRUST--SERIES A (a Delaware Business Trust) STATEMENTS OF OPERATIONS (Unaudited)
For the period from For the period from January 1, 2003 to January 1, 2002 to March 28, 2003 March 29, 2002 -------------------------------------------------------------------------------------------------------- REVENUES Net realized gain (loss) on commodity transactions $ 455,592 $(156,258) Change in net unrealized gain/loss on open commodity positions (163,659) (28,066) Interest income 19,461 28,122 ------------------- ------------------- 311,394 (156,202) ------------------- ------------------- EXPENSES Commissions 97,312 97,172 Management fees 25,077 25,040 ------------------- ------------------- 122,389 122,212 ------------------- ------------------- Net income (loss) $ 189,005 $(278,414) ------------------- ------------------- ------------------- ------------------- ALLOCATION OF NET INCOME (LOSS) Limited interests $ 187,098 $(275,403) ------------------- ------------------- ------------------- ------------------- General interests $ 1,907 $ (3,011) ------------------- ------------------- ------------------- ------------------- NET INCOME (LOSS) PER WEIGHTED AVERAGE LIMITED AND GENERAL INTEREST Net income (loss) per weighted average limited and general interest $ 3.73 $ (4.01) ------------------- ------------------- ------------------- ------------------- Weighted average number of limited and general interests outstanding 50,729 69,413 ------------------- ------------------- ------------------- ------------------- --------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN TRUST CAPITAL (Unaudited)
LIMITED GENERAL INTERESTS INTERESTS INTERESTS TOTAL ----------------------------------------------------------------------------------------------------- Trust capital--December 31, 2002 51,789.230 $5,015,625 $ 53,046 $5,068,671 Net income 187,098 1,907 189,005 Redemptions (2,594.569) (269,825) -- (269,825) ----------- ---------- --------- ---------- Trust capital--March 28, 2003 49,194.661 $4,932,898 $ 54,953 $4,987,851 ----------- ---------- --------- ---------- ----------- ---------- --------- ---------- ----------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these statements.
4 WORLD MONITOR TRUST--SERIES A (a Delaware Business Trust) NOTES TO FINANCIAL STATEMENTS MARCH 28, 2003 (Unaudited) A. General These financial statements have been prepared without audit. In the opinion of Prudential Securities Futures Management Inc. (the 'Managing Owner'), the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of World Monitor Trust--Series A ('Series A') as of March 28, 2003 and December 31, 2002 and the results of its operations for the period from January 1, 2003 to March 28, 2003 ('First Quarter 2003') and January 1, 2002 to March 29, 2002 ('First Quarter 2002'). However, the operating results for the interim periods may not be indicative of the results expected for a full year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in Series A's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2002. B. Related Parties The Managing Owner of Series A is a wholly-owned subsidiary of Prudential Securities Incorporated ('PSI'), which, in turn, is an indirect wholly-owned subsidiary of Prudential Financial, Inc. The Managing Owner or its affiliates perform services for Series A, which include, but are not limited to: brokerage services; accounting and financial management; registrar, transfer and assignment functions; investor communications, printing and other administrative services. Except for costs related to brokerage services, PSI or its affiliates pay the costs of these services in addition to Series A's routine operational, administrative, legal and auditing costs. The costs charged to Series A for brokerage services for First Quarter 2003 and First Quarter 2002 were $97,312 and $97,172, respectively. Series A's assets are maintained either in trading or cash accounts with PSI, Series A's commodity broker, or, for margin purposes, with the various exchanges on which Series A is permitted to trade. PSI credits Series A monthly with 100% of the interest it earns on the average net assets in Series A's accounts. Series A, acting through its trading advisor, may execute over-the-counter, spot, forward and/or option foreign exchange transactions with PSI. PSI then engages in back-to-back trading with an affiliate, Prudential-Bache Global Markets Inc. ('PBGM'). PBGM attempts to earn a profit on such transactions. PBGM keeps its prices on foreign currency competitive with other interbank currency trading desks. All over-the-counter currency transactions are conducted between PSI and Series A pursuant to a line of credit. PSI may require that collateral be posted against the marked-to-market position of Series A. C. Derivative Instruments and Associated Risks Series A is exposed to various types of risks associated with the derivative instruments and related markets in which it invests. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of Series A's investment activities (credit risk). 5 Market Risk Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of Series A's net assets being traded, significantly exceeds Series A's future cash requirements since Series A intends to close out its open positions prior to settlement. As a result, Series A is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, Series A considers the 'fair value' of its derivative instruments to be the net unrealized gain or loss on the contracts. The market risk associated with Series A's commitments to purchase commodities is limited to the gross or face amount of the contract held. However, when Series A enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contract at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes Series A to unlimited risk. Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effects among the derivative instruments Series A holds and the liquidity and inherent volatility of the markets in which Series A trades. Credit Risk When entering into futures or forward contracts, Series A is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on United States and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, if Series A enters into forward transactions, the sole counterparty is PSI, Series A's commodity broker. Series A has entered into a master netting agreement with PSI and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the statements of financial condition. The amount at risk associated with counterparty non-performance of all of Series A's contracts is the net unrealized gain included in the statements of financial condition; however, counterparty non-performance on only certain of Series A's contracts may result in greater loss than non-performance on all of Series A's contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to Series A. The Managing Owner attempts to minimize both credit and market risks by requiring Series A and its trading advisor to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions. Additionally, pursuant to the advisory agreement among Series A, the Managing Owner and the trading advisor, Series A shall automatically terminate the trading advisor if the net asset value allocated to the trading advisor declines by 33 1/3% from the value at the beginning of any year or since the effective date of the advisory agreement (i.e., March 2000). Furthermore, the Second Amended and Restated Declaration of Trust and Trust Agreement provides that Series A will liquidate its positions, and eventually dissolve, if Series A experiences a decline in net asset value of 50% from the value at the beginning of any year or since the commencement of trading activities. In each case, the decline in net asset value is after giving effect for distributions, contributions and redemptions. The Managing Owner may impose additional restrictions (through modifications of trading limitations and policies) upon the trading activities of the trading advisor as it, in good faith, deems to be in the best interest of Series A. PSI, when acting as Series A's futures commission merchant in accepting orders for the purchase or sale of domestic futures contracts, is required by Commodity Futures Trading Commission ('CFTC') regulations to separately account for and segregate as belonging to Series A all assets of Series A relating to domestic futures trading and is not allowed to commingle such assets with other assets of PSI. At March 28, 2003, such segregated assets totalled $1,015,303. Part 30.7 of the CFTC regulations also requires PSI to secure 6 assets of Series A related to foreign futures trading which totalled $4,036,036 at March 28, 2003. There are no segregation requirements for assets related to forward trading. As of March 28, 2003, Series A's open futures contracts mature within three months. D. Financial Highlights
First Quarter First Quarter 2003 2002 -------------- ------------------ Performance per Interest Net asset value, beginning of period $ 97.87 $78.23 -------------- -------- Net realized gain (loss) and change in net unrealized gain on commodity transactions 5.56 (2.58) Interest income .38 .40 Expenses (2.42) (1.76) -------------- -------- Increase (decrease) for the period 3.52 (3.94) -------------- -------- Net asset value, end of period $ 101.39 $74.29 -------------- -------- -------------- -------- Total return 3.60% (5.04)% Ratio to average net assets (annualized) Interest income 1.49% 2.15% Expenses 9.39% 9.35%
These financial highlights represent the overall results of Series A during First Quarter 2003 and First Quarter 2002. An individual limited owner's actual results may differ depending on the timing of redemptions. 7 WORLD MONITOR TRUST--SERIES A (a Delaware Business Trust) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Series A commenced operations on June 10, 1998 with gross proceeds of $6,039,177 allocated to commodities trading. Interests in Series A continued to be offered weekly until Series A achieved its subscription maximum of $34,000,000 during November 1999. The Managing Owner suspended the offering of interests in World Monitor Trust--Series B and World Monitor Trust--Series C and allowed all selling registrations to expire by April 30, 2002. As such, interests owned in one series of World Monitor Trust may no longer be exchanged for interests of one or more other series of World Monitor Trust. Interests in Series A may be redeemed on a weekly basis. Redemptions of limited interests for First Quarter 2003 and for the period from June 10, 1998 (commencement of operations) to March 28, 2003 were $269,825 and $23,607,265, respectively. While there were no redemptions of general interests during First Quarter 2003, redemptions of general interests for the period from June 10, 1998 (commencement of operations) to March 28, 2003 were $217,115. Future redemptions will impact the amount of funds available for investment in commodity contracts in subsequent periods. At March 28, 2003, 100% of Series A's net assets were allocated to commodities trading. A significant portion of the net assets was held in cash, which was used as margin for Series A's trading in commodities. Inasmuch as the sole business of Series A is to trade in commodities, Series A continues to own such liquid assets to be used as margin. PSI credits Series A monthly with 100% of the interest it earns on the average net assets in Series A's accounts. The commodities contracts are subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as 'daily limits.' During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent Series A from promptly liquidating its commodity futures positions. Since Series A's business is to trade futures and forward contracts, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contract (credit risk). Series A's exposure to market risk is influenced by a number of factors, including the volatility of interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationship among the contracts held. The inherent uncertainty of Series A's speculative trading, as well as the development of drastic market occurrences, could result in monthly losses considerably beyond Series A's experience to date and could ultimately lead to a loss of all or substantially all of investors' capital. The Managing Owner attempts to minimize these risks by requiring Series A and its trading advisor to abide by various trading limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. See Note C to the financial statements for a further discussion on the credit and market risks associated with Series A's futures and forward contracts. Series A does not have, nor does it expect to have, any capital assets. Results of Operations The net asset value per interest as of March 28, 2003 was $101.39, an increase of 3.60% from the December 31, 2002 net asset value per interest of $97.87. Past performance is not necessarily indicative of future results. Series A's gross trading gains (losses) were $292,000 during First Quarter 2003 compared to $(184,000) during First Quarter 2002. Due to the nature of Series A's trading activities, a period to period comparison of 8 its trading results is not meaningful. However, a detailed discussion of Series A's First Quarter 2003 trading results is presented below. Quarterly Market Overview Global economic activity for the first quarter of 2003 was characterized by weakness and volatility. The U.S. economy exhibited signs of a slowdown as consumers and businesses continued to reduce spending due to concerns regarding the war in Iraq, SARS outbreak, high oil price premiums, weak corporate profits and depressed global economies. With the exception of steady automobile orders and existing home sales fueled by attractive interest rates, retail sales continued to be sluggish. Labor market indicators were negative and manufacturing contracted. Foreign economies generally mirrored that of the U.S. In Europe and Asia, economic recovery appeared to have slowed, but Canada recorded moderate economic expansion. Indices: Major global equity markets rallied early in the quarter but slid on fears of an impending war with Iraq, possible terrorism and geopolitical tension. Anticipation of a quick decisive victory in Iraq resulted in a brief market run up in mid-March. However, toward the end of the quarter, markets were whipsawed as investors responded to every turn of military events in the Middle East. Ultimately, the markets ended the quarter lower as investors awaited a resolution. The Dow Jones Industrial Average closed down 4.2% and the S&P 500 dropped 3.2%. Several encouraging earnings reports boosted the Nasdaq Composite resulting in a net gain of 0.42% for the quarter. Japan's Nikkei 225 stock index hit a 20-year low at the end of the first quarter. Interest rates: At both the January and March meetings, the U.S. Federal Reserve left the federal funds rate unchanged at the 41-year low of 1.25%. In mid-March, initial optimism for the Coalition Forces' success in Iraq resulted in a shift by investors to junk bonds and stocks marking the worst setback for the U.S. Treasury markets in 18 months. U.S. Treasury yields increased by 41 basis points from a 44-year low, incurring the biggest weekly increase in yield since November 2001. Toward the end of the quarter, uncertainty about the war led investors to take defensive positions, with the price of 10-year Treasury notes ending the quarter up 3.81%. In Europe, the European Central Bank cut interest rates by 0.25% in the beginning of March. The lowered interest rate coupled with weak global economic growth prospects resulted in the strengthening of European bond prices. Currencies: Perceptions of quick success in Iraq boosted the U.S. dollar versus many foreign currencies. However, concerns that the war would disrupt the U.S. economy strengthened the euro against the U.S. dollar. For the first time in three years, the exchange rate between the euro and U.S. dollar reached $1.10. As a result, the U.S. dollar ended the quarter down against the euro and the Japanese yen. In Canada, the Bank of Canada increased its overnight interest rate in March in response to inflation concerns, resulting in the strengthening of the Canadian dollar. Energies: Price increases in the world oil markets at the beginning of the first quarter were fed by concerns of supply disruptions due to the conflict in Iraq, civil strife in Venezuela, anticipation of a Nigerian strike and tensions on the Korean peninsula. In mid-March, anticipation of a quick resolution of the war in Iraq coupled with the end of an extended cold snap in the northeastern United States led to a significant reversal in energy prices. However, at quarter-end, fears of the possibility of a prolonged war in Iraq and low supplies pushed energy futures prices higher despite the securing of Iraqi oil wells. Softs: Cocoa prices declined as a result of the continuing political stability in the Ivory Coast. Expectations for less rain in the U.S. plains states boosted wheat prices toward the end of the quarter and corn prices rose as a result of bullish prospective planting and stocks data released by U.S. Department of Agriculture. Soybean futures declined as a result of rain in key growing regions in Southern Argentina and weaker overseas prices. Quarterly Performance of Series A The following is a summary of performance for the major sectors in which Series A traded: Energies (+): Long natural gas positions resulted in net gains as prices rose amid expectations of unseasonable cold weather in Northeastern U.S. and sharp drawdown of storage levels. Interest rates (+): Concerns around the war in Iraq, poor performance in the equity markets and weak global economies strengthened European bond prices resulting in net gains for long positions. 9 Currencies (+): The U.S. dollar fell against many foreign currencies amid concerns that the war in Iraq would disrupt the U.S. economy. Long euro positions resulted in net gains. Metals (-): Long aluminum positions incurred losses as base metal prices declined due to large inventories and reduced demand. Series A's average net asset level during First Quarter 2003 decreased slightly in comparison to First Quarter 2002, primarily due to redemptions subsequent to the First Quarter 2002 offset by strong trading performance subsequent to the First Quarter 2002. Interest income, commissions and management fees, which are based on the asset levels, have remained in proportion to the change in asset level. Interest income is earned on Series A's average net assets held at PSI and, therefore, varies monthly according to interest rates, trading performance and redemptions. Interest income decreased $9,000 during First Quarter 2003 as compared to First Quarter 2002 due to lower interest rates during First Quarter 2003 as compared to First Quarter 2002, and due to the slight decrease in average net assets as discussed above. Commissions are calculated on Series A's net asset value at the end of each week and, therefore, vary according to weekly trading performance and redemptions. Commissions were relatively the same during First Quarter 2003 as compared to First Quarter 2002 due to the slight decline in average net asset levels as discussed above. All trading decisions for Series A are made by Eagle-Global System (the 'Trading Advisor'). Management fees are calculated on Series A's net asset value at the end of each week and, therefore, are affected by weekly trading performance and redemptions. Management fees were relatively the same during First Quarter 2003 as compared to First Quarter 2002 due to the slight decrease in average net asset levels as discussed above. Incentive fees are based on the 'New High Net Trading Profits' generated by the Trading Advisor, as defined in the advisory agreement among the Trust, the Managing Owner and the Trading Advisor. No incentive fees were paid during First Quarter 2003 or First Quarter 2002. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Information regarding quantitative and qualitative disclosures about market risk is not required pursuant to Item 305(e) of Regulation S-K. ITEM 4. CONTROLS AND PROCEDURES Within the 90 days prior to the date of this report, the Managing Owner carried out an evaluation, under the supervision and with the participation of the officers of the Managing Owner, including the Managing Owner's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Series A's disclosure controls and procedures. Based upon that evaluation, the Managing Owner's Chief Executive Officer and Chief Financial Officer concluded that Series A's disclosure controls and procedures are effective. There were no significant changes in Series A's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. 10 PART II. OTHER INFORMATION Item 1. Legal Proceedings--There are no material legal proceedings pending by or against Series A or the Managing Owner. 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 3.1 and 4.1--Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust dated as of March 17, 1998 (incorporated by reference to Exhibits 3.1 and 4.1 to Series A's Registration Statement on Form S-1, File No. 333-43033) 4.2--Form of Request for Redemption (incorporated by reference to Exhibit 4.2 to Series A's Registration Statement on Form S-1, File No. 333-43033) 4.3--Form of Exchange Request (incorporated by reference to Exhibit 4.3 to Series A's Registration Statement on Form S-1, File No. 333-43033) 4.4--Form of Subscription Agreement (incorporated by reference to Exhibit 4.4 to Series A's Registration Statement on Form S-1, File No. 333-43033) 99.1--Certificate pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the SARBANES-OXLEY Act of 2002 (filed herewith) (b) Reports on Form 8-K--None 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Series A has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. WORLD MONITOR TRUST--SERIES A By: Prudential Securities Futures Management Inc. A Delaware corporation, Managing Owner By: /s/ Steven Weinreb Date: May 12, 2003 ---------------------------------------- Steven Weinreb Chief Financial Officer CERTIFICATIONS I, Eleanor L. Thomas, certify that: 1. I have reviewed this quarterly report on Form 10-Q of World Monitor Trust--Series A ('Series A'); 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of Series A as of, and for, the periods presented in this quarterly report; 4. Series A's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for Series A and we have: a) designed such disclosure controls and procedures to ensure that material information relating to Series A, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of Series A's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the 'Evaluation Date'); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. Series A's other certifying officers and I have disclosed, based on our most recent evaluation, to Series A's auditors and the board of directors of the managing owner of Series A: a) all significant deficiencies in the design or operation of internal controls which could adversely affect Series A's ability to record, process, summarize and report financial data and have identified for Series A's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in Series A's internal controls; and 6. Series A's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: May 12, 2003 /s/ Eleanor L. Thomas --------------------------------- Eleanor L. Thomas President (chief executive officer) of the managing owner of Series A 12 I, Steven Weinreb, certify that: 1. I have reviewed this quarterly report on Form 10-Q of World Monitor Trust--Series A ('Series A'); 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of Series A as of, and for, the periods presented in this quarterly report; 4. Series A's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for Series A and we have: a) designed such disclosure controls and procedures to ensure that material information relating to Series A, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of Series A's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the 'Evaluation Date'); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. Series A's other certifying officers and I have disclosed, based on our most recent evaluation, to Series A's auditors and the board of directors of the managing owner of Series A: a) all significant deficiencies in the design or operation of internal controls which could adversely affect Series A's ability to record, process, summarize and report financial data and have identified for Series A's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in Series A's internal controls; and 6. Series A's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: May 12, 2003 /s/ Steven Weinreb ------------------------------------- Steven Weinreb Chief Financial Officer of the managing owner of Series A 13