UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2012
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: 000-51836
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
(Exact name of registrant as specified in its charter)
Illinois | 36-4368292 | |
(State of Organization) | (IRS Employer Identification Number) |
c/o Beeland Management Company, L.L.C. | ||
General Partner | ||
141 West Jackson Boulevard, Suite 1340A | ||
Chicago, Illinois | 60604 | |
(Address of principal executive offices) | (Zip Code) |
(312) 264-4375
(Registrants telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Units of Limited Partnership
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark if the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (Sec. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes x No ¨
Indicate by check mark if the disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes x No ¨
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | x |
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x
DOCUMENTS INCORPORATED BY REFERENCE
None
PART I
ITEM 1. | BUSINESS |
(a) General development
Rogers International Raw Materials Fund, L.P. (the Partnership) is an Illinois Limited Partnership established in May 2000. The Partnership invests and trades a portfolio primarily of commodity futures and forward contracts designed to track the change in values of the Rogers International Commodity Index® (the Index). The Partnership commenced trading during November 2001. Beeland Management Company, L.L.C., an Illinois limited liability company (Beeland Management), serves as the general partner of the Partnership.
The Partnership originally filed a registration statement, under the Securities Act of 1933, as amended, with the Securities and Exchange Commission (the SEC) to register $200 million of units of limited partnership interest (the Series A units), which registration statement became effective in January 2001. The Partnerships initial offering period was held during fiscal year 2001. The Series A units were initially offered for sale at a fixed price of $100 per unit. An initial closing was held after a minimum of 50,000 units in subscriptions was received.
The net proceeds from the initial closing, after deducting the subscription fee, were placed in a trading account with the Partnerships futures commission merchant and were used to acquire a portfolio of futures positions, consistent with the Partnerships trading policies, as well as U.S. Government obligations.
The Partnership subsequently filed an additional registration statement with the SEC to bring the total dollar amount of Series A units registered for sale to approximately $245,405,200, and a total of 677,673.54 of units have been sold to the public as of March 1, 2013.
Effective September 22, 2010, the Partnership filed an additional registration statement with the SEC to register $150,000,000 of Series B Units of limited partnership interest (the Series B units). A total of $1,280,078 of Series B units have been sold to the public as of March 1, 2013. Series A and Series B units are identical with respect to participation in the Partnerships profits or losses. Series B units do not, however, participate in any Partnership recoveries arising out of the bankruptcy of Refco Inc. and its affiliates.
The Partnership will terminate December 31, 2020 or earlier upon certain circumstances as defined in the Limited Partnership Agreement.
(b) Financial information about segments
The Partnerships business constitutes only one business segment, i.e., a speculative commodity pool. The Partnership does not engage in sales of goods and services. Financial information regarding the Partnerships business is set forth in Item 8 Financial Statements and Supplementary Data.
(c) Narrative description of business
The Partnership invests and trades in a portfolio of commodity futures and forward contracts. The Partnerships investment activities are designed to replicate the positions that comprise the Rogers International Commodity Index ® (the Index). The Index consists of a compendium, sometimes known as a basket, of raw materials employed within the world economy and traded on established exchanges as futures and forward contracts. The Partnership invests and trades exclusively on the long side of the market. This means that the Partnership only buys positions in commodities and does not engage in any short-selling. The Partnership historically has closed out all positions by making an offsetting sale and has not taken delivery of the actual commodities, although it may take delivery in the future. Funds for its business are obtained only by the sale of units of limited partnership interest and from the retention of any profits generated from the Partnerships trading. As of December 31, 2012, the Partnership was offering only Series B units for sale.
1
The Index was developed by James Beeland Rogers, Jr. to be a balanced, representative, international raw materials index. Beeland Management believes that the Index includes most of the publicly traded raw materials used in international commerce for which futures contracts or forward contracts are regularly traded in recognized markets. Beeland Management attempts to replicate the composition of the Index using various commodity futures contracts. The initial components of the Index and their weightings were chosen by Mr. Rogers based on his perception of the relative importance of the underlying raw materials in international trade and commerce. A committee now formulates and enacts all business assessments and decisions regarding the composition of the Index. Mr. Rogers, as the founder and owner of the Index, chairs that committee and is the final arbiter of its decisions. Rogers International Commodity Index is a registered service mark of Beeland Interests, Inc., a company wholly owned by Mr. Rogers. Beeland Management uses and publishes the Index and markets products designed to track the Index pursuant to a nonexclusive license from Beeland Interests, Inc.
Since the Partnerships portfolio is based on the Index, there is no active trading by Beeland Management in the traditional sense. Unlike most commodity pools, commodity contracts are not bought or sold to take advantage of potential profitable price movement. Other than effecting trades to reflect a possible adjustment in the composition of the Index or the weightings among its components, the only regular trading performed by Beeland Management is for rolling positions from near delivery dates to later delivery dates to ensure that the Partnership will not take actual delivery of a physical commodity. These rolling trades, made pursuant to a predetermined formula and rules, are placed and effected, to the extent possible, as spread transactions in which the Partnership simultaneously buys and sells futures contracts corresponding to the same commodity but for delivery in different months.
The Partnerships principal objective is to provide an alternative investment vehicle for investors with diversified investment portfolios. The performance of the Partnership is not correlated with traditional securities markets. In other words, the performance of the Partnership is largely independent from how the traditional equity and debt markets perform. Accordingly, the Partnerships returns will not necessarily increase when that of stocks or bonds increase and will not necessarily decrease when that of stocks or bonds decrease. However, the Partnership will not necessarily perform better when traditional markets decline, or perform worse when the traditional markets are rising.
The Partnership pays a monthly management fee to Beeland Management equal to 0.08333% of the average monthly sum of all limited partner capital accounts at the close of each month (1.00% per annum). The Partnership pays the costs of executing and clearing its trades, its administrative expenses, compensation due to its selling agents, and any extraordinary expenses which it may incur.
ADM Investor Services, Inc. (ADMIS) acts as the futures commission merchant for the Partnership, and The Price Futures Group, Inc., related to Beeland Management through common management, acts as introducing broker for the Partnership. The Partnership is open-ended and may offer Series B units at the net asset value per Series B unit as of the first day of each month. Unit holders of Series A and B units normally may be redeemed upon 6 business days written notice to the Partnerships general partner.
Regulation
Under the Commodity Exchange Act, as amended (the CEA), commodity exchanges and futures trading are subject to regulation by the Commodity Futures Trading Commission (the CFTC). National Futures Association (the NFA), a registered futures association under the CEA, is the only non-exchange self-regulatory organization for futures industry professionals. The CFTC has delegated to the NFA responsibility for the registration of commodity trading advisors, commodity pool operators, futures commission merchants, introducing brokers and their respective associated persons and floor brokers and floor traders. The CEA requires commodity pool operators and commodity trading advisors, such as Beeland Management, and commodity brokers or futures commission merchants and introducing brokers, such as ADMIS and The Price Futures Group, Inc. to be registered and to comply
2
with various reporting and record keeping requirements. The CFTC may suspend a commodity pool operators or trading advisors registration if it finds that its trading practices tend to disrupt orderly market conditions or in certain other situations. In the event that the registration of Beeland Management as a commodity pool operator or a commodity trading advisor were terminated or suspended, Beeland Management would be unable to continue to manage the business of the Partnership. Should Beeland Managements registration be suspended, termination of the Partnership might result.
In addition to such registration requirements, the CFTC and certain commodity exchanges have established limits on the maximum net long or net short position which any person may hold or control in particular commodities. Most exchanges also limit the changes in futures contract prices that may occur during a single trading day. In November 2011, the CFTC finalized rules for a separate position limits regime for 28 so-called exempt (i.e. metals and energy) and agricultural futures and options contracts and their economically equivalent swap contracts. However, this rule was vacated by court action. The CFTC has appealed the courts action and the outcome of the appeal, or whether the CFTC will repropose the rule, is uncertain. If the CFTC rule (without the defects troubling the court) becomes effective, Beeland Management believes that the limits, once compliance is required, will be sufficiently large that they should not restrict the Partnerships ability to replicate the Index.
(i) through (xii)not applicable.
(xiii) the Partnership has no employees.
(d) Financial information about geographic areas
The Partnership does not engage in material operations in foreign countries (although it does trade from the United States on foreign futures exchanges), nor is a material portion of its revenues derived from foreign customers.
ITEM 1A. | RISK FACTORS |
Not Required.
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
Not Required.
ITEM 2. | PROPERTIES |
The Partnership does not own or use any physical properties in the conduct of its business. Beeland Management Company L.L.C., 141 W. Jackson Blvd., Suite 1340A, Chicago, IL 60604, conducts the Partnerships trading activities and performs certain administrative services for the Partnership from its offices.
ITEM 3. | LEGAL PROCEEDINGS |
None.
ITEM 4. | MINE SAFETY DISCLOSURES |
Not applicable.
3
PART II
ITEM 5. | MARKET FOR REGISTRANTS LIMITED PARTNERSHIP UNITS AND RELATED PARTNER MATTERS AND ISSUER PURCHASES OF LIMITED PARTNERSHIP UNITS |
(a) Market Information. There is no established market for the Series A and B units, and none is likely to develop. Series A and B units normally may be redeemed upon 6 business days written notice to the Partnerships general partner, Beeland Management Company, LLC, 141 W. Jackson Blvd., Suite 1340A, Chicago, IL 60604.
(b) Holders. There were approximately 811 Series A and 58 Series B Limited Partners at March 1, 2013.
(c) Dividends. The Fund has not paid any dividends.
(d) Securities Authorized for Issuance Under Equity Compensation Plans. There are no securities authorized for issuance under equity compensation plans.
(e) Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities. There have been no sales of unregistered securities of the Partnership during 2012. A total of $1,280,078 of Series B units has been sold to the public as of March 1, 2013.
(f) Issuer Purchases of Equity Securities. Unitholders may redeem their Series A and B units at the end of each calendar month at the then current month-end Net Asset Value per unit. The redemption of units has no impact on the value of Series A and B units that remain outstanding, and Series A and B units are not reissued once redeemed.
The following table summarizes the redemptions by Series A and Series B Unitholders during the fourth calendar quarter of 2012:
Series A
Redemption Date | ||||||||
Month | Units Redeemed | NAV per Unit | ||||||
October 31, 2012 |
4,330.01 | 172.05 | ||||||
November 30, 2012 |
1,717.01 | 174.66 | ||||||
December 31, 2012 |
12,592.57 | 173.18 |
Series B
Redemption Date | ||||||||
Month | Units Redeemed | NAV per Unit | ||||||
October 31, 2012 |
70.85 | 168.86 | ||||||
November 30, 2012 |
2.33 | 171.41 | ||||||
December 31, 2012 |
105.46 | 169.39 |
ITEM 6. | SELECTED FINANCIAL DATA |
Not required.
4
ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
INTRODUCTION
The Partnerships trading is designed to replicate the positions which comprise the Index. The Partnership invests and trades in a portfolio of commodity futures and possibly forward contracts. The Partnership invests and trades solely on the long side of the market. Beeland Management, as general partner, manages all business of the Partnership.
The Index is not designed to predict which markets will exhibit positive (or negative) performance in any given year, and the specific components of the Index were not selected based on expectations of their future performance. Rather, the Index was designed to be a balanced, representative international raw materials index and to include most of the publicly traded raw materials used in international commerce. As a diversified index, the Index as a whole can be expected to produce different levels of return (including negative returns) in its various sectors from year to year.
CAPITAL RESOURCES
The Partnership will raise additional capital only through the sale of units of limited partnership interest. At December 31, 2012, the Partnership was offering only Series B units for sale. The Partnership does not intend to raise any capital through borrowing. Due to the nature of the Partnerships business, it will make no capital expenditures and will have no capital assets that are not operating capital or assets.
LIQUIDITY
Most United States commodity exchanges limit fluctuations in futures contracts prices during a single day by regulations referred to as daily price fluctuation limits or daily limits. During a single trading day, no trades may be executed at prices beyond the daily limit. This may affect the Partnerships ability to close existing positions and initiate new positions when the Partnership is rolling its positions forward from one futures contract delivery month to another or when adjusting the Partnerships portfolio to reflect additions or withdrawals of capital. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Trading in forward or other over the counter contracts introduces a possible further impact on liquidity. Because such contracts are executed off exchange between private parties, the time required to offset or unwind these positions may be greater than that for regulated instruments. Other than these limitations on liquidity, which are inherent in the Partnerships trading operations; the Partnerships assets are highly liquid and are expected to remain so. During its operations through December 31, 2012, the Partnership experienced no meaningful periods of illiquidity in any of the markets traded by the Partnership.
As described more fully below under Results of Operations for 2012, as of November 1, 2012, the Partnership no longer has exposure to the bankruptcy of MF Global Holdings Ltd. and liquidation of MF Global Inc.
RESULTS OF OPERATIONS
The Partnerships net income or loss is directly related to changes in the value of the Index, which the Partnership is designed to replicate, and is not dependent on trading decisions made by Beeland Management apart from balancing positions to track the Index. In periods of general market inflation, Beeland Management would expect the value of the Index to increase; similarly, in periods of general market deflation, Beeland Management would expect the value of the Index to decrease. The Partnerships performance may be negative in years when the Indexs performance is positive due to fees charged.
5
The components of the Partnerships return are normally the gains and losses recognized from the changes in futures market prices and the interest income earned on cash balances. The mechanics and rules of futures markets allow the Partnership to earn interest on approximately 90% to 100% of its assets.
At December 31, 2012 and 2011, the Partnerships net assets were $25,770,284 and $34,885,591, respectively.
Year ended 2012 |
Year ended 2011 |
|||||||
Net Revenues | ||||||||
Realized net trading gain (loss) |
$ | (156,007 | ) | $ | 1,357,010 | |||
Change in unrealized net trading gain |
810,099 | (3,985,745 | ) | |||||
Interest income |
34,388 | 66,249 | ||||||
Other income |
166,545 | 536,778 | ||||||
Recovery (Loss) from MF Global |
899,346 | (1,130,702 | ) | |||||
|
|
|
|
|||||
Total Net Revenues |
$ | 1,754,371 | $ | (3,156,410 | ) | |||
|
|
|
|
|||||
Operating Expenses | ||||||||
Brokerage commissions |
$ | 66,071 | $ | 81,722 | ||||
Management fees |
308,768 | 462,368 | ||||||
Administrative and other fees |
709,030 | 858,136 | ||||||
|
|
|
|
|||||
Total Operating Expenses |
$ | 1,083,869 | $ | 1,402,226 | ||||
|
|
|
|
2012
During 2012, the Index and the Partnership experienced positive performance. The Index can be categorized into three sectors: agriculture, energy and metals. During 2012, the performance of the Indexs sectors was all positive. Metals led the sectors with a positive increase of 1.60% while agriculture and energy sectors posted increases of 0.92% and 0.13%, respectively. The Index returned 2.03% while the Partnership returned 2.12%. Performance of the Partnership deviated from the Index due to the expenses charged at the Partnership level, but primarily due to the gain of 3.02% recognized by the Partnership as it related to the sale of the MF Global claim. In connection with the October 31, 2011, bankruptcy of MF Global Holdings Ltd. and the SIPC led liquidation of MF Global Inc. (MF Global), then the Partnerships futures commission merchant, the Partnership received $ 295,025 in distributions from the MF Global bankruptcy trustee during 2012. At September 30, 2012, the Partnership wrote up the value of its MF Global bankruptcy claims by $817,140, based on information received regarding independent third party bids for the claims. Due to uncertainties surrounding the eventual timing and recovery amounts available through the MF Global bankruptcy process, in October 2012, Beeland Management concluded that selling the Partnerships bankruptcy claims was in the best interest of the Partnership and its investors. Accordingly, the Partnership sold its claims on November 1, 2012, recognizing an additional $82,206 in income as of October 31, 2012, to write up the claims to the final sale amount. Income recognized from each of the September 30, 2012 and October 31, 2012 write-ups was allocated to the investors in the Partnership in the month in which each such event occurred, and, as of November 1, 2012, the Partnership has had no further involvement with MF Global or the MF Global bankruptcy. The final net loss sustained by the Partnership related to the MF Global bankruptcy, after the sale of the MF Global claims, was $231,356.
The Partnership had capital contributions in 2012 totaling $437,705. The total capital withdrawals in 2012 were $10,223,514.
6
2011
During 2011, the Index and the Partnership experienced negative performance. The performance of the Index, and thus the Partnership, reflected the uncertainty of the world economy as some European nations risked financial default. The combination of the European debt crisis and the failure of MF Global in the fourth quarter of 2011, were contributing factors to the price of agriculture and metals commodities.
The Index can be categorized into three sectors: agriculture, energy and metals. During 2011, the performance of the Indexs sectors was mixed. Energy led the sectors with a positive increase of 4.02% while agriculture and metals sectors posted losses of (15.49%) and (15.99%), respectively. The Index returned (6.93%) while the Partnership returned (11.26%). Performance of the Partnership deviated from the Index due to the expenses charged at the Partnership level, but primarily due to the loss of (2.78%) taken by the Partnership as it related to estimated uncollectable assets held at MF Global.
On October 31, 2011, MF Global Holdings Ltd., the parent company of MF Global, then the Partnerships futures commission merchant, filed for bankruptcy under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court, Southern District of New York. On October 31, 2011, MF Global reported an unprecedented potential deficiency in customer segregated assets and the SEC and CFTC determined that the most prudent course to protect customer accounts and assets would be an immediate SIPC-led liquidation of MF Global. As of October 31, 2011, $5,131,353 or approximately 12.6% of the Partnerships assets were held on deposit in customer segregated and secured accounts at MF Global. In a statement dated November 21, 2011, the Trustee for the liquidation of MF Global stated that he believes there is at least a $1.2 billion deficiency in customer segregated assets at MF Global. Based on this estimate, Beeland Management determined that the Partnership take a loss of 2.78% (or $1,130,702) of the Partnerships total net assets, representing the Partnerships pro rata share of the Trustees estimated deficiency in customer segregated assets at MF Global. This loss was reflected in October 2011 performance for the Partnership. Although some assets have been transferred from MF Global to the Partnerships new futures commission merchant, ADMIS, as of December 31, 2011, Beeland Management believes that a portion of the Partnerships assets are, and may remain for some time, illiquid, but does not have sufficient information to estimate accurately how long such assets may be unavailable to the Partnership or the percentage of assets that may not be recovered, if any.
The Partnership had capital contributions in 2011 totaling $509,622. The total capital withdrawals in 2011 were $11,005,236.
OFF-BALANCE SHEET RISK
The term off-balance sheet risk refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in future obligation or loss. The Partnership trades primarily in futures and forward contracts and may therefore become a party to financial instruments with elements of off-balance sheet market and credit risk. Market risks arise from changes in the market value of financial instruments. Theoretically, the Partnerships exposure is equal to the notional contract value of futures contracts entered. Exposure to market risk is influenced by a number of factors, including the relationships between financial instruments, and the volatility and liquidity in the markets in which the financial instruments are traded. Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of a contract. The Partnerships exposure to credit risk associated with counterparty nonperformance is generally the net unrealized gain on the open positions plus the value of the margin or collateral held by the counterparty. Exchange-traded financial instruments generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements and the margin requirements of individual exchanges. Financial instruments traded off-exchange give rise to the risk of the failure of, or the inability or refusal to perform by, the counterparties to such trades.
7
The Partnership clears all of its futures trades through one clearing broker, ADMIS. In the event this counterparty does not fulfill its obligations, the Partnership may be exposed to risk. This risk of default depends on the creditworthiness of the counterparties to these transactions. The Partnership has a substantial portion of its assets on deposit with financial institutions in connection with its cash management activities. In the event of a financial institutions insolvency, recovery of the Partnerships assets on deposit may be limited to the amount of insurance or other protection afforded such deposits. The Partnership attempts to minimize this credit risk by monitoring the creditworthiness of the clearing broker and financial institutions.
CRITICAL ACCOUNTING POLICIES VALUATION OF THE PARTNERSHIPS POSITIONS
Beeland Management believes that the accounting policies that are most critical to the Partnerships financial condition and results of operations relate to the valuation of the Partnerships positions. The Partnerships positions are exchange-traded futures contracts, which are valued daily at settlement prices published by the exchanges. Thus, Beeland Management expects that under normal circumstances substantially all of the Partnerships assets are valued on a daily basis using objective measures.
The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting period. Based on the nature of the business and operations of the Partnership, Beeland Management believes that the estimates utilized in preparing the Partnerships financial statements are appropriate and reasonable; however actual results could differ from these estimates. The estimates used do not provide a range of possible results that would require the exercise of subjective judgment. Beeland Management further believes that, based on the nature of the business and operations of the Partnership, no other reasonable assumptions relating to the application of the Partnerships accounting estimates other than those currently used would likely result in materially different amounts from those reported.
OFF-BALANCE SHEET ARRANGEMENTS
The Partnership does not engage in off-balance sheet arrangements with other entities.
CONTRACTUAL OBLIGATIONS
The Partnership does not enter into any contractual obligations or commercial commitments to make future payments of a type that would be typical for an operating company or that would affect its liquidity or capital resources. The Partnerships sole business is trading futures, forwards, and other over the counter contracts. All such contracts are settled by offset, not delivery. The Partnerships financial statements, included in Item 8 of this report, present audited Schedules of Investments setting forth unrealized gains and losses on the Partnerships open futures contracts at December 31, 2012 and 2011.
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Not required.
8
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
The following financial statements of The Rogers International Raw Materials Fund, L.P. are included in Item 8:
Page | ||||
Financial Statements |
||||
F-1 | ||||
Statements of Financial Condition as of December 31, 2012 and 2011 |
F-2 | |||
F-3 | ||||
F-4 | ||||
Statements of Operations for the Years Ended December 31, 2012 and 2011 |
F-5 | |||
F-6 | ||||
F-7-14 |
9
Report of Independent Registered Public Accounting Firm
To the Partners
Rogers International Raw Materials Fund, L.P.
We have audited the accompanying statements of financial condition, including the condensed schedules of investments, of Rogers International Raw Materials Fund, L.P. (the Partnership) as of December 31, 2012 and 2011, and the related statements of operations and changes in partners capital (net assets) for the years then ended. These financial statements are the responsibility of the Partnerships management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnerships internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rogers International Raw Materials Fund, L.P. as of December 31, 2012 and 2011, and the results of its operations for the years then ended in conformity with U.S. generally accepted accounting principles.
/s/ McGladrey LLP |
Chicago, Illinois March 29, 2013 |
F-1
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
STATEMENTS OF FINANCIAL CONDITION
December 31, 2012 and 2011
2012 | 2011 | |||||||
ASSETS | ||||||||
Equity in broker trading accounts: |
||||||||
Cash at brokers |
$ | 5,669,131 | $ | 5,387,385 | ||||
Unrealized (loss) on open futures contracts, net |
(50,123 | ) | (860,221 | ) | ||||
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|
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|
|||||
Total equity in brokers trading accounts |
5,619,008 | 4,527,164 | ||||||
U.S. Government securities, at fair value |
19,441,749 | 27,673,158 | ||||||
Cash and cash equivalents |
3,643,786 | 2,899,515 | ||||||
Receivable from MF Global (Note 4) |
| 1,825,854 | ||||||
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|
|
|
|||||
Total assets |
$ | 28,704,543 | $ | 36,925,691 | ||||
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LIABILITIES | ||||||||
Brokerage commissions payable |
$ | 4,357 | $ | 4,357 | ||||
Accrued management feesGeneral Partner |
23,510 | 31,147 | ||||||
Administrative and other fees payable |
249,876 | 214,855 | ||||||
Withdrawals payable |
2,656,516 | 1,789,741 | ||||||
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|
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Total liabilities |
2,934,259 | 2,040,100 | ||||||
PARTNERS CAPITAL (NET ASSETS) |
||||||||
Partners capital (net assets) |
25,770,284 | 34,885,591 | ||||||
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Total liabilities and partners capital (net assets) |
$ | 28,704,543 | $ | 36,925,691 | ||||
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See accompanying notes to financial statements.
F-2
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2012
Fair Value | Percent of Partners Capital (Net Assets) |
|||||||
U.S. Government securities: |
||||||||
(total cost$19,437,729) |
||||||||
U.S. Treasury Bills due 1/10/2013 at 0.09%, principal amount $2,100,000 |
$ | 2,097,948 | 8.14 | % | ||||
U.S. Treasury Bills due 2/7/2013 at 0.12%, principal amount $1,150,000 |
1,149,858 | 4.46 | ||||||
U.S. Treasury Bills due 2/14/2013 at 0.1%, principal amount $2,100,000 |
2,097,741 | 8.14 | ||||||
U.S. Treasury Bills due 2/14/2013 at 0.05%, principal amount $1,500,000 |
1,499,917 | 5.82 | ||||||
U.S. Treasury Bills due 2/14/2013 at 0.04%, principal amount $800,000 |
799,964 | 3.10 | ||||||
U.S. Treasury Bills due 3/07/2013 at 0.1%, principal amount $2,100,000 |
2,097,619 | 8.14 | ||||||
U.S. Treasury Bills due 3/07/2013 at 0.06%, principal amount $4,000,000 |
3,999,596 | 15.52 | ||||||
U.S. Treasury Bills due 3/14/2013 at 0.06%, principal amount $1,500,000 |
1,499,811 | 5.82 | ||||||
U.S. Treasury Bills due 3/14/2013 at 0.04%, principal amount $800,000 |
799,936 | 3.10 | ||||||
U.S. Treasury Bills due 4/18/2013 at 0.04%, principal amount $1,500,000 |
1,499,678 | 5.82 | ||||||
U.S. Treasury Bills due 4/18/2013 at 0.05%, principal amount $900,000 |
899,875 | 3.49 | ||||||
U.S. Treasury Bills due 5/02/2013 at 0.06%, principal amount $1,000,000 |
999,806 | 3.88 | ||||||
|
|
|
|
|||||
$ | 19,441,749 | 75.44 | % | |||||
|
|
|
|
|||||
Unrealized Gain (Loss) on Open Long |
Percent of Partners Capital |
|||||||
Contracts | (Net Assets) | |||||||
Futures contracts*: |
||||||||
U.S. Futures Positions |
||||||||
Agricultural |
$ | (337,574 | ) | (1.31 | %) | |||
Metals |
(44,370 | ) | (0.17 | ) | ||||
Energy |
43,440 | 0.17 | ||||||
|
|
|
|
|||||
Total U.S. Futures Positions |
(338,504 | ) | (1.31 | ) | ||||
|
|
|
|
|||||
Foreign Futures Positions |
||||||||
Agricultural |
(502 | ) | (0.00 | ) | ||||
Metals |
288,883 | 1.12 | ||||||
|
|
|
|
|||||
Total Foreign Futures Positions |
288,381 | 1.12 | ||||||
|
|
|
|
|||||
Total Futures Contracts |
$ | (50,123 | ) | (0.19 | %) | |||
|
|
|
|
* | No individual futures contract position constitutes greater than 1 percent of Partners Capital (Net Assets). Accordingly, the number of contracts and expiration dates are not presented. |
See accompanying notes to financial statements.
F-3
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
CONDENSED SCHEDULE OF INVESTMENTS
December 31, 2011
Fair Value | Percent
of Partners Capital (Net Assets) |
|||||||
U.S. Government securities: |
||||||||
(total cost$27,649,960) |
||||||||
U.S. Treasury Bills due 2/9/2012 at 0.19%, principal amount $2,510,000 |
$ | 2,509,478 | 7.19 | % | ||||
U.S. Treasury Bills due 3/8/2012 at 0.26%, principal amount $2,330,000 |
2,328,863 | 6.68 | ||||||
U.S. Treasury Bills due 4/5/2012 at 0.20%, principal amount $3,300,000 |
3,298,273 | 9.45 | ||||||
U.S. Treasury Bills due 5/3/2012 at 0.08%, principal amount $4,070,000 |
4,068,855 | 11.66 | ||||||
U.S. Treasury Bills due 5/31/2012 at 0.18%, principal amount $3,678,000 |
3,675,215 | 10.54 | ||||||
U.S. Treasury Bills due 6/28/2012 at 0.17%, principal amount $3,300,000 |
3,297,278 | 9.45 | ||||||
U.S. Treasury Bills due 7/26/2012 at 0.06%, principal amount $2,000,00 |
1,999,319 | 5.73 | ||||||
U.S. Treasury Bills due 8/23/2012 at 0.09%, principal amount $3,400,000 |
3,398,046 | 9.74 | ||||||
U.S. Treasury Bills due 8/23/2012 at 0.09%, principal amount $2,100,000 |
2,098,618 | 6.02 | ||||||
U.S. Treasury Bills due 10/18/2012 at 0.10%, principal amount $1,000,000 |
999,213 | 2.87 | ||||||
|
|
|
|
|||||
$ | 27,673,158 | 79.33 | % | |||||
|
|
|
|
|||||
Unrealized Gain (Loss) on Open Long Contracts |
Percent of Partners Capital (Net Assets) |
|||||||
Futures contracts*: |
||||||||
U.S. Futures Positions |
||||||||
Agricultural |
$ | (235,456 | ) | (0.68 | %) | |||
Metals |
(227,120 | ) | (0.65 | ) | ||||
Energy |
(181,989 | ) | (0.52 | ) | ||||
|
|
|
|
|||||
Total U.S. Futures Positions |
(644,565 | ) | (1.85 | ) | ||||
|
|
|
|
|||||
Foreign Futures Positions |
||||||||
Agricultural |
35,348 | 0.10 | ||||||
Metals |
(251,004 | ) | (0.72 | ) | ||||
|
|
|
|
|||||
Total Foreign Futures Positions |
(215,656 | ) | (0.62 | ) | ||||
|
|
|
|
|||||
Total Futures Contracts |
$ | (860,221 | ) | (2.47 | %) | |||
|
|
|
|
* | No individual futures contract position constitutes greater than 1 percent of Partners Capital (Net Assets). Accordingly, the number of contracts and expiration dates are not presented. |
See accompanying notes to financial statements.
F-4
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
For the years ended December 31, 2012 and 2011
2012 | 2011 | |||||||
Net trading gains (losses): |
||||||||
Realized |
$ | (156,007 | ) | $ | 1,357,010 | |||
Change in unrealized |
810,099 | (3,985,745 | ) | |||||
Commissions |
(66,071 | ) | (81,722 | ) | ||||
|
|
|
|
|||||
588,021 | (2,710,457 | ) | ||||||
|
|
|
|
|||||
Investment income (loss): |
||||||||
Interest income |
34,388 | 66,249 | ||||||
Other income |
166,545 | 536,778 | ||||||
MF Global Recovery (Loss) (Note 4) |
899,346 | (1,130,702 | ) | |||||
|
|
|
|
|||||
1,100,279 | (527,675 | ) | ||||||
|
|
|
|
|||||
Expenses: |
||||||||
Management fees General Partner |
308,768 | 462,368 | ||||||
Administrative and other fees |
709,030 | 858,136 | ||||||
|
|
|
|
|||||
1,017,798 | 1,320,504 | |||||||
|
|
|
|
|||||
Net investment income (loss) |
82,481 | (1,848,179 | ) | |||||
|
|
|
|
|||||
Net income (loss) |
$ | 670,502 | $ | (4,558,636 | ) | |||
|
|
|
|
|||||
Net increase (decrease) in NAV per GP and LP unit for the year: |
||||||||
General Partner |
$ | 3.63 | $ | (21.52 | ) | |||
Limited Partners-Series A |
$ | 3.63 | $ | (21.52 | ) | |||
Limited Partners-Series B |
$ | 2.47 | $ | (23.52 | ) | |||
Net income (loss) per General and Limited Partners (based on weighted average number of units outstanding during the period): |
||||||||
General Partner |
$ | 15,973 | $ | (86,816 | ) | |||
Limited Partners-Series A |
633,820 | (4,351,948 | ) | |||||
Limited Partners-Series B |
20,709 | (119,872 | ) | |||||
|
|
|
|
|||||
$ | 670,502 | $ | (4,558,636 | ) | ||||
|
|
|
|
See accompanying notes to financial statements.
F-5
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
STATEMENTS OF CHANGES IN PARTNERS CAPITAL (NET ASSETS)
For the years ended December 31, 2012 and 2011
General Partner | Limited Partners | |||||||||||||||||||||||||||||||
Series A | Series B | |||||||||||||||||||||||||||||||
Number of Units |
Dollars | Number of Units |
Dollars | Number of Units |
Dollars | Total | Total | |||||||||||||||||||||||||
Partners capital (net assets), January 1, 2011 |
4,034 | $ | 770,838 | 255,561 | $ | 48,829,926 | 1,780 | 339,077 | $ | 49,169,003 | $ | 49,939,841 | ||||||||||||||||||||
Contributions |
| | | | 2,573 | 509,622 | 509,622 | 509,622 | ||||||||||||||||||||||||
Net loss |
| (86,816 | ) | | (4,351,948 | ) | | (119,872 | ) | (4,471,820 | ) | (4,558,636 | ) | |||||||||||||||||||
Withdrawals |
(590 | ) | (100,000 | ) | (57,323 | ) | (10,866,706 | ) | (218 | ) | (38,530 | ) | (10,905,236 | ) | (11,005,236 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Partners capital (net assets), December 31, 2011 |
3,444 | 584,022 | 198,238 | 33,611,272 | 4,135 | 690,297 | 34,301,569 | 34,885,591 | ||||||||||||||||||||||||
Contributions |
| | | | 2,646 | 437,705 | 437,705 | 437,705 | ||||||||||||||||||||||||
Net income |
| 15,973 | | 633,820 | | 20,709 | 654,529 | 670,502 | ||||||||||||||||||||||||
Withdrawals |
(1,712 | ) | (300,000 | ) | (57,232 | ) | (9,873,426 | ) | (296 | ) | (50,088 | ) | (9,923,514 | ) | (10,223,514 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Partners capital (net assets), December 31, 2012 |
1,732 | $ | 299,995 | 141,006 | $ | 24,371,666 | 6,485 | $ | 1,098,623 | $ | 25,470,289 | $ | 25,770,284 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 | 2011 | |||||||
Per unit data |
||||||||
Net asset value Series A |
$ | 173.18 | $ | 169.55 | ||||
Net asset value Series B |
$ | 169.39 | $ | 166.92 | ||||
Net asset value General Partner |
$ | 173.18 | $ | 169.55 |
See accompanying notes to financial statements.
F-6
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.
December 31, 2012
Note 1. Significant Accounting Policies:
Nature of Business and Organization: Rogers International Raw Materials Fund, L.P. (the Partnership) is an Illinois Limited Partnership that was established in May 2000. The Partnership trades a portfolio primarily of commodity futures contracts, principally on recognized exchanges. The Partnership may also purchase contracts in the over the counter marketplace under certain circumstances. The Partnership invests and trades exclusively on the long side of the market. The Partnerships investment strategy is designed to replicate the Rogers International Commodity Index® (the Index) and positions are rebalanced monthly to maintain the Indexs relative weightings. The Partnership commenced trading during November 2001. The Partnership will terminate on December 31, 2020 or earlier upon certain circumstances as defined in the Limited Partnership Agreement. The Partnerships General Partner and commodity pool operator is Beeland Management Company, L.L.C. (the General Partner). Beeland Interests, Inc. is the owner and sponsor of the Index.
Accounting Policies: The Partnership follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (FASB), to ensure consistent reporting of financial condition and results of operation.
Net Assets: The valuation of net assets includes open commodity futures owned by the Partnership, if any, at the end of the period. The unrealized gain or loss on these contracts has been calculated based on settlement prices on the last business day of each month. Net assets are determined by subtracting liabilities from assets, which also equals partners capital.
Cash and Cash Equivalents: Cash and cash equivalents include highly liquid instruments with original maturities of three months or less at the date of acquisition. Cash and cash equivalents include amounts on deposit with a broker to facilitate payment of expenses and partner withdrawals.
Profit and Loss Allocation: Limited partners and the General Partner share in the profits and losses of the Partnership in the proportion that each partners capital account bears to the total partners capital.
Income Taxes: No provision for income taxes has been made in these financial statements as each partner is individually responsible for reporting income or loss based on its respective share of the Partnerships income and expenses as reported for income tax purposes.
The Partnership is generally not subject to examination by U.S. federal or state taxing authorities for tax years before 2009. The Partnership has no material uncertain tax positions, and accordingly, has not recorded a liability for the payment of interest or penalties through December 31, 2012.
Fair Value of Financial Instruments: Securities and derivative financial instruments are recorded at fair value.
Revenue Recognition: Futures and forward contracts are recorded on a trade date basis and realized gains or losses are recognized when contracts are liquidated. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statements of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses. Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations.
Interest Income Recognition: The Partnership records interest income on the accrual basis.
Use of Estimates: The preparation of financial statements in conformity with GAAP 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation: Foreign currency is translated into U.S. dollars at the exchange rate prevailing on the last business day of each month. The Partnership does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities and derivative financial instruments held. Such fluctuations are included with the net realized trading gains or losses.
F-7
Note 1. Significant Accounting Policies (continued):
Ongoing Offering Expenses: Ongoing offering expenses are accrued on an ongoing basis and charged to expense as incurred.
Deposits with Brokers: The Partnership deposits assets with brokers subject to Commodity Futures Trading Commission regulations and various exchange and broker requirements. Margin requirements are satisfied by the deposit of cash with such brokers. The Partnership earns interest income on its assets deposited with the brokers.
Withdrawals Payable: Withdrawals approved by the General Partner prior to month-end with a fixed effective date and fixed amount are recorded as withdrawals payable as of month-end (See Note 6).
Statement of Cash Flows: The Partnership has elected not to provide a statement of cash flows as permitted by GAAP as all of the following conditions have been met:
| During the years, substantially all of the Partnerships investments were highly liquid; |
| Substantially all of the Partnerships investments are carried at fair value; |
| The Partnership had little or no debt during the years; |
| The Partnerships financial statements include a statement of changes in partners capital (net assets). |
Note 2. Fair Value of Financial Instruments:
As described in Note 1, the Partnership records its investments at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies.
Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investments level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnerships assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following section describes the valuation techniques used by the Partnership to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized.
The fair values of exchange traded futures contracts are based upon exchange settlement prices. Money market funds included in cash at brokers are valued using quoted market prices. U.S. Government securities are stated at cost plus accrued interest, which approximates fair value based on quoted prices for identical assets in an active market. These financial instruments are categorized in Level 1 of the fair value hierarchy.
F-8
Note 2. Fair Value of Financial Instruments (continued):
The following table summarizes the Partnerships assets measured at fair value on a recurring basis as of December 31, 2012 and 2011 using the fair value hierarchy:
2012 | 2011 | |||||||
Description |
Level 1 | Level 1 | ||||||
Equity in brokers trading account: |
||||||||
Unrealized gain/ (loss) on open futures contracts, net* |
$ | (50,123 | ) | $ | (860,221 | ) | ||
U.S. Government securities* |
19,441,749 | 27,673,158 | ||||||
Cash and cash equivalents: |
||||||||
Money market funds |
3,112,326 | 2,409,216 | ||||||
|
|
|
|
|||||
$ | 22,503,952 | $ | 29,222,153 | |||||
|
|
|
|
* | See the condensed schedule of investments for further description. |
During the years ended December 31, 2012 and 2011, there were no Level 2 or Level 3 assets or liabilities.
The Partnership assesses the levels of assets and liabilities measured at fair value at each measurement date, and transfers between levels are recognized on the accrual date of the event or change in circumstances that caused the transfer. There were no transfers among Levels 1, 2, and 3 during the years ended December 31, 2012 and 2011.
In addition, substantially all of the Partnerships other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments.
Note 3. Derivative Transactions
The Partnerships business is the speculative trading of futures contracts. The Partnership does not consider any derivative instruments to be hedging instruments, as this term is generally understood under FASB guidance.
As of and for the years ended December 31, 2012 and 2011, the Partnerships derivative contracts had the following impact on the statements of financial condition and statements of operations:
Asset Derivatives | Liability Derivatives | Net Derivatives | ||||||||||
December 31, 2012 | December 31, 2012 | December 31, 2012 | ||||||||||
Fair Value | Fair Value | Fair Value* | ||||||||||
Futures positions: |
||||||||||||
Agricultural |
$ | 104,776 | $ | (442,852 | ) | $ | (338,076 | ) | ||||
Metals |
394,948 | (150,435 | ) | 244,513 | ||||||||
Energy |
83,364 | (39,924 | ) | 43,440 | ||||||||
|
|
|
|
|
|
|||||||
$ | 583,088 | $ | (633,211 | ) | $ | (50,123 | ) | |||||
|
|
|
|
|
|
|||||||
Asset Derivatives | Liability Derivatives | Net Derivatives | ||||||||||
December 31, 2011 | December 31, 2011 | December 31, 2011 | ||||||||||
Fair Value | Fair Value | Fair Value* | ||||||||||
Futures positions: |
||||||||||||
Agricultural |
$ | 191,448 | $ | (391,556 | ) | $ | (200,108 | ) | ||||
Metals |
118,572 | (596,696 | ) | (478,124 | ) | |||||||
Energy |
11,034 | (193,023 | ) | (181,989 | ) | |||||||
|
|
|
|
|
|
|||||||
$ | 321,054 | $ | (1,181,275 | ) | $ | (860,221 | ) | |||||
|
|
|
|
|
|
* | The net fair value of all assets and liability derivatives is included in equity in broker trading accounts in the statements of financial condition. |
F-9
Note 3. Derivative Transactions (continued):
Trading gains and losses** for the years ended December 31, 2012 and 2011:
Type of Instrument | 12/31/2012 | 12/31/2011 | ||||||
Futures positions: |
||||||||
Agricultural |
$ | 121,961 | $ | (2,348,630 | ) | |||
Metal |
512,435 | (2,626,848 | ) | |||||
Energy |
38,907 | 2,349,560 | ||||||
|
|
|
|
|||||
$ | 673,303 | $ | (2,625,918 | ) | ||||
|
|
|
|
|||||
Line Item in Statement of Operations |
||||||||
Realized |
$ | (136,796 | ) | $ | 1,359,827 | |||
Change in unrealized |
810,099 | (3,985,745 | ) | |||||
|
|
|
|
|||||
$ | 673,303 | $ | (2,625,918 | ) | ||||
|
|
|
|
** | Trading gains and losses is exclusive of brokerage commissions and gains (losses) from foreign currency conversion. |
For the years ended December 31, 2012 and 2011, the monthly average number of contracts bought and sold was 819 and 1,046, respectively.
Note 4. MF Global Bankruptcy:
On October 31, 2011, MF Global Inc., the Partnerships clearing broker at that time (MF Global), reported to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) possible deficiencies in customer segregated accounts held at the firm. As a result, the SEC and CFTC determined that a liquidation led by the Securities Investor Protection Corporation (SIPC) would be the safest and most prudent course of action to protect customer accounts and assets, and a SIPC led liquidation commenced. As of October 31, 2011, the Partnership held $5,131,353 or approximately 12.6% of partners capital in customer segregated and secured accounts at MF Global Inc. on deposit as required to support futures positions. The majority of the Partnerships assets were then, and are now, held in bank custody accounts.
Through December 31, 2011, this receivable was reduced by $2,174,797 comprised of disbursements initiated by the bankruptcy trustee, as well as other trading related activities. The Partnership filed appropriate claims with the bankruptcy trustee for remaining amounts due (the MF Global Claim). However, due to the inherent uncertainty in the timing and results of the liquidation process from the bankruptcy proceedings, the Partnership recognized a 2.78% (or $1,130,702) loss on the MF Global Claim, which was an estimate of the Partnerships pro-rata share of the projected MF Global asset shortfall. This loss is reflected as Loss on MF Global on the statement of operations.
The Partnership received $295,025 in distributions from the MF Global bankruptcy trustee during 2012. At September 30, 2012, the Partnership wrote up the value of its MF Global bankruptcy claims by $817,140, based on information received regarding independent third party bids for the claims. Due to uncertainties surrounding the eventual timing and recovery amounts available through the MF Global bankruptcy process, in October 2012, the General Partner concluded that selling the Partnerships bankruptcy claims was in the best interest of the Partnership and its investors. Accordingly, the Partnership sold its claims on November 1, 2012, recognizing an additional $82,206 in income as of October 31, 2012, to write up the claims to the final sale amount. Income recognized from each of the September 30, 2012 and October 31, 2012 write-ups was allocated to the investors in the Partnership in the month in which each such event occurred, and, as of November 1, 2012, the Partnership has had no further involvement with MF Global or the MF Global bankruptcy. The final net loss sustained by the Partnership related to the MF Global bankruptcy, after the sale of the MF Global claims, was $231,356.
F-10
Note 5. Agreements and Related-Party Transactions:
The Limited Partnership Agreement vests all responsibility and powers for the management of the business and affairs of the Partnership with the General Partner, Beeland Management Company, L.L.C. including trading decisions.
The Partnership pays a monthly management fee to the General Partner equal to 0.08333% of the net assets of the Partnership at the close of the preceding month (1.00% per annum).
The Partnership is responsible for the administrative and trading expenses related to its operations. The General Partner may incur certain expenses on behalf of the Partnership and charge the Partnership for its allocable portion of these expenses.
Uhlmann Price Securities L.L.C. (Uhlmann), a party related to the General Partner through common management, acts as the selling group manager for the Partnership. The Partnership pays Uhlmann a share of selling fees when units are sold by its registered brokers. Selling fees of up to 2% of the gross offering proceeds (which includes a 0.50% reallowance to Uhlmann) were charged to partners capital upon issuance of Series B Partnership units.
In addition, there is an annual trailing servicing fee of up to 1% of the net asset value of the specific partners capital account payable to the soliciting broker-dealer for ongoing investor services. For all Series B units sold, the total trailing servicing fee is not to exceed 7.99% of the gross offering proceeds of the units sold.
The Price Futures Group, Inc. (Price Futures), a related party to the General Partner through common management, acts as the introducing broker for the Partnership, whereby certain accounts of the Partnership are introduced to the Partnerships clearing broker. A portion of the brokerage fee paid by the Partnership for clearing transactions is paid to Price Futures, by the clearing broker.
Fund Dynamics, LLC, an affiliate of the General Partner through common management, acts as the Partnerships administrator. Fund Dynamics, LLC calculates both the daily and monthly Net Asset Value (NAV), prepares the monthly accounting package, and prepares monthly investor statements.
A summary of fees charged by related parties to the Partnership is as follows:
2012 | 2011 | |||||||
Management feesGeneral Partner |
$ | 308,768 | $ | 462,368 | ||||
Administrative feesFund Dynamics |
72,011 | 102,601 | ||||||
Trailing servicing feesUhlmann |
195,743 | 295,145 | ||||||
Selling FeesUhlmann |
8,933 | 10,169 |
Note 6. Partnership Capital and Withdrawals:
The Partnership accepts contributions as of the close of business on the last business day of each month for investment on the first day of the next succeeding month. The General Partner may accept or reject contributions and waive the minimum contribution amounts in its sole discretion. Effective November 1, 2010, the Partnership began accepting contributions for Series B units. The Partnership has been closed to Series A units contributions since October 31, 2005. Series A and Series B units are identical with respect to participation in the Partnerships profits or losses. Series B units do not, however, participate in any Partnership recoveries arising out of the bankruptcy of Refco Inc. and its affiliates.
The purchase price of a unit is the net asset value per unit as of the end of each calendar month. Net asset value per unit is calculated as the net asset value at month-end divided by the number of outstanding units.
The Partnership accepts withdrawals on a monthly basis. Requests for withdrawal should be received by the General Partner no later than six business days prior to the end of the month in which an investor chooses to withdraw. Requests for withdrawal should be sent to the General Partner by email, fax, or overnight courier.
F-11
Note 7. Financial Instruments with Off-Balance Sheet Credit and Market Risk:
The Partnership is involved in trading activities that may have market and/or credit risk. Financial instruments employed in the Partnerships operations may have market and/or credit risk in excess of the amounts recorded in the statements of financial condition.
Market RiskMarket risks arise from changes in the market value of financial instruments. Theoretically, the Partnerships exposure is equal to the notional contract value of futures contracts entered. Exposure to market risk is influenced by a number of factors, including the relationships between financial instruments, and the volatility and liquidity in the markets in which the financial instruments are traded. The use of financial instruments may serve to modify or offset market risk associated with other transactions.
Credit RiskCredit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of a contract. The Partnerships exposure to credit risk associated with counterparty nonperformance is generally the net unrealized gain on the open positions plus the value of the margin or collateral held by the counterparty. Exchange-traded financial instruments generally do not give rise to significant counterparty exposure due to the cash settlement procedures for daily market movements and the margin requirements of individual exchanges. Financial instruments traded off-exchange give rise to the risk of the failure of, or the inability or refusal to perform by, the counterparties to such trades.
Concentration of Credit RiskThe Partnership clears all of its futures trades through one clearing broker, ADM Investor Services, Inc. In the event this counterparty does not fulfill its obligations, the Partnership may be exposed to risk. This risk of default depends on the creditworthiness of the counterparties to these transactions.
The Partnership has a substantial portion of its assets on deposit with financial institutions in connection with its cash management activities. In the event of a financial institutions insolvency, recovery of the Partnerships assets on deposit may be limited to the amount of insurance or other protection afforded such deposits.
The Partnership attempts to minimize this credit risk by monitoring the creditworthiness of the clearing broker and financial institutions.
F-12
Note 8. Financial Highlights:
Financial highlights for limited partners for the years ended December 31, 2012 and 2011 are as follows:
Per Unit Performance
Series A 2012 |
Series B 2012 |
Series A 2011 |
Series B 2011 |
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Net asset value per unit at the beginning of the period |
$ | 169.55 | $ | 166.92 | $ | 191.07 | $ | 190.44 | ||||||||
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Income (loss) from operations: |
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Net trading gains (losses) |
3.17 | 1.75 | (13.74 | ) | (12.25 | ) | ||||||||||
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Investment income (loss) |
6.20 | 6.51 | (2.19 | ) | (5.44 | ) | ||||||||||
Expenses: |
(5.74 | ) | (5.79 | ) | (5.59 | ) | (5.83 | ) | ||||||||
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Net investment gain (loss) |
0.46 | 0.72 | (7.78 | ) | (11.27 | ) | ||||||||||
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Net income (loss) per unit |
3.63 | 2.47 | (21.52 | ) | (23.52 | ) | ||||||||||
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Net asset value per unit at the end of the period |
$ | 173.18 | $ | 169.39 | $ | 169.55 | $ | 166.92 | ||||||||
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Series A 2012 |
Series B 2012 |
Series A 2011 |
Series B 2011 |
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Ratio of net investment income (loss) to average partners capital (net assets) |
0.27 | % | 0.43 | % | (4.05 | %) | (5.99 | %) | ||||||||
Ratio of expenses to average partners capital (net assets) (1) |
3.34 | % | 3.43 | % | 2.91 | % | 3.10 | % | ||||||||
Total return |
2.14 | % | 1.48 | % | (11.26 | %) | (12.35 | %) |
The above ratios were calculated for the partners taken as a whole. The computation of such ratios was not based on the amount of expenses assessed and income allocated to an individual partners capital account, which may vary from these ratios based on the timing of capital transactions and the different fee arrangements (see Note 5).
(1) | The ratio of expenses to average partners capital (net asset) values does not include brokerage commissions. |
Note 9. Litigation:
The Partnership is a beneficiary of a Litigation Trust which is seeking recoveries from third parties, related to the 2005 bankruptcy of Refco, Inc. and numerous affiliates (the Refco Bankruptcy). As of December 31, 2012, the Partnership has received the full value of its allowed claims in the Refco Bankruptcy and has recovered approximately $5.5 million in excess of its allowed securities claim in the Refco Bankruptcy and may receive additional Refco Bankruptcy related recoveries, although there can be no assurance that it will or that any additional recoveries will be material. Management is unable to estimate the amounts of any such additional recoveries.
All Refco Bankruptcy related recoveries received by the Partnership, including excess recoveries except as described below, have been allocated among all partners in the Partnership who were partners as of October 31, 2005, on a pro-rata basis as October 31, 2005, with redeemed partners receiving cash distributions. Cash distributions to redeemed partners from excess recoveries totaled approximately $0 and $1,065,000 for the years ended December 31, 2012 and 2011, respectively. Pursuant to Section 12.2 of the Partnerships Agreement of Limited Partnership, the Partnership reimbursed the General Partner and Beeland Interests approximately $7,796 and $400,000, respectively, from excess recoveries for legal costs incurred by the General Partner and Beeland Interests defending against suits related to the Refco Bankruptcy in 2012 and 2011. Beeland Interests, Inc. is the owner and sponsor of the Index.
F-13
The Partnership has reserved $69,646 of the excess Refco related recoveries to apply to expenses incurred to administer ongoing communication with, and distributions and reporting to, redeemed limited partners with respect to Refco related recoveries received by the Partnership. These expenses include but are not limited to professional fees, printing, postage, and administration fees. At December 31, 2012, $4,646 of these expenses is included in administrative and other fees payable on the statement of financial condition.
At December 31, 2012 and 2011, $456,561 and $0 of excess Refco related recoveries was payable to redeemed limited partners. These amounts are appropriately included in withdrawals payable for those years ended.
Note 10. Indemnifications:
In the normal course of business, the Partnership enters into contracts and agreements that contain a variety of representations and warranties, both of which provide general indemnifications. The Partnerships maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred. The Partnership expects the risk of any future obligation under these indemnifications to be remote.
Note 11. Subsequent Events:
From January 1, 2013 to March 29, 2013 there were $25,117 contributions to the Partnership and withdrawals from the Partnership totaled $1,119,082.
F-14
2. Supplementary Data
Not required.
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
None.
ITEM 9A. | CONTROLS AND PROCEDURES |
Disclosure Control and Procedures
Under the supervision and with the participation of the Partnerships general partner, Beeland Management, including the Chief Executive Officer and Chief Financial Officer, the Partnership has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of December 31, 2013, the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of December 31, 2012.
Managements Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, an evaluation was conducted of our internal control over financial reporting as of December 31, 2011, based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. The principal executive officer and principal financial officer of Beeland Management have evaluated the effectiveness of Beeland Managements internal controls over financial reporting with respect to the Partnership and have concluded that Beeland Managements internal controls over financial reporting are effective.
Changes in Internal Control Over Financial Reporting
There were no changes to internal control or financial reporting procedures during the fourth quarter that have materially affected, or are reasonably likely to affect, internal control over financial reporting.
ITEM 9B. | OTHER INFORMATION |
None.
PART III
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
(a,b) Identification of Directors and Executive Officers
The Partnership has no directors or executive officers. The Partnership is managed by Beeland Management Company, L.L.C., its general partner.
Beeland Management is an Illinois limited liability company formed in 1997 to serve as the general partner of and commodity trading advisor to partnerships and accounts that track the Rogers International Commodity Index.
The officers of Beeland Management are as follows:
Walter Thomas Price III, age 73, is a Managing Member of Beeland Management and is the Chairman of Price Asset Management, Inc. He has been the President and CEO of The Price Futures Group since June 1995. Mr. Price has been involved in the securities, cash commodities and commodity futures markets for more than 40 years as both a trader for his own account and as a broker. He is president, a registered principal, and associated person of Price Capital Markets Inc., with which he has been affiliated since February 1997. At Price Capital Markets, Inc., Mr. Price is ultimately responsible for overseeing all trading decisions. He is a graduate of the University of Texas and is also a licensed FINRA principal and NFA principal. Mr. Price does not hold any ownership interest in Beeland Management.
1
Allen D. Goodman, age 44, is the chief financial officer of Beeland Management, which he joined in November 2004. From March 2001 through September 2012, Mr. Goodman served as Chief Financial Officer of Price Asset Management, Inc. From January 2000, to March 2001, he served as founder and president of Financial Products, Ltd., a management consulting firm specializing in financial process reengineering. From February 1999 to January 2000, he worked as a management consultant for Via International, preceded by service as a business valuation consultant for BDO Seidman LLP from May 1997 to February 1999. Prior to that, from February 1995 to May 1997, he founded and managed Exclusively Gourmet, Inc., a specialty food and confections brokerage company. Mr. Goodman holds a B.A. degree from the University of Wisconsin and a M.S.A. in Accounting from DePaul University. Mr. Goodman does not hold any ownership interest in Beeland Management.
(c) Identification of Certain Significant Employees
None.
(d) Family Relationships
None.
(e) Business Experience
See Item 10 (a,b) above.
(f) Involvement in Certain Legal Proceedings
None.
(g) Code of Ethics
The Partnership has no employees, officers or directors and is managed by it general partner, Beeland Management, which has adopted an Executive Code of Ethics that applies to its principal executive officer and principal financial and accounting officer. A copy of this Executive Code of Ethics may be obtained at no charge by written request to Beeland Management Company, L.L.C., 141 W. Jackson Blvd., Suite 1340A, Chicago, Illinois 60604 or by calling 312-264-4375.
(h) Audit Committee Financial Expert
Because the Partnership has no employees, officers or directors, it has no audit committee. The Partnership is managed by Beeland Management, its general partner. Allen Goodman serves as the Beeland Managements audit committee financial expert. Mr. Goodman is not independent of the management of Beeland Management, which is a privately owned limited liability company. Beeland Management has no independent directors.
ITEM 11. | EXECUTIVE COMPENSATION |
The Partnership pays a monthly management fee to Beeland Management equal to 0.08333% of the average monthly sum of all Capital Accounts contributed by Limited Partners at the close of each month (1.00% per annum). In addition, there is an annual trailing servicing fee of up to 1% of the net asset value of the specific partners capital account payable to soliciting broker-dealers for ongoing investor services.
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS |
(a) Security Ownership of Certain Beneficial Owners
The Partnership knows of no person who owns beneficially more than 5% of the units. All of the Partnerships general partner interest is held by Beeland Management Company, L.L.C.
(b) Security Ownership of Management
The Partnerships affairs are managed by Beeland Management Company, L.L.C. As general partner, Beeland Management Company, L.L.C. held approximately 1,732 Units in the Partnership as of December 31, 2012, representing approximately 1.16% of the Partnerships outstanding units as of December 31, 2012.
2
(c) Changes in Control
None.
(d) Securities Authorized for Issuance Under Equity Compensation Plans
None.
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
The Price Futures Group, Inc. (Price Futures Group) introduces the Partnerships commodity trading activity to ADMIS, the Partnerships clearing broker, and receives compensation from ADMIS for doing so. Walter Thomas Price III and Allen D. Goodman are officers of Price Futures Group.
Fund Dynamics, LLC serves as the Partnerships administrator and receives a fee for its services. Walter Thomas Price III and Allen D. Goodman are officers of Fund Dynamics, LLC.
Uhlmann Price Securities L.L.C. (Uhlmann), one of several broker-dealers selling units of the Partnership, receives selling fees when units are sold by its registered brokers and a share of the selling fees when units are sold by other broker-dealers.
Price Holdings, Inc. owns 100% of Price Futures Group, Fund Dynamics, LLC and Uhlmann. Price Holdings, Inc. ESOP, an employee stock ownership plan, holds 100% of the stock of Price Holdings, Inc. for the benefit of its employees, including Mr. Price and Mr. Goodman.
A summary of fees charged or received by related parties to the Partnership during 2012 is as follows:
2012 | ||||
Management feesGeneral Partner |
$ | 308,768 | ||
Administrative feesFund Dynamics |
72,011 | |||
Trailing servicing feesUhlmann |
195,743 | |||
Selling FeesUhlmann |
8,933 |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
(1) | Audit Fees. McGladrey LLP (formerly McGladrey & Pullen, LLP) has billed and anticipates billing the Partnership for professional services rendered for each of the last two years ended December 31, 2011 and 2012. Professional services relate to the audit of the Partnerships annual financial statements, review of financial statements included in the Partnerships regulatory quarterly filings and other services normally provided in connection with regulatory filings. |
2012 |
$ | 112,300 | ||
2011 |
$ | 112,300 |
(2) | Audit-Related Fees. None. |
(3) | Tax Fees. McGladrey LLP and RSM McGladrey, Inc. (an entity associated with McGladrey & Pullen, LLP before, December 1, 2011) provides tax compliance services which relate to the preparation of U.S. and applicable state income tax returns. |
2012 |
$ | 35,000 | ||
2011 |
$ | 35,000 |
(4) | All Other Fees. None. |
3
(5) | The Managing Members of Beeland Management Company, L.L.C. pre-approve the engagement of the Partnerships auditor for all services to be provided by the auditor and have determined that the payments made for these services are compatible with maintaining the auditors independence. |
(6) | Not Applicable. |
PART IV
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
(a) | The following documents filed as a part of the report: |
(1) | Financial Statements: |
The following are included with the 2012 Report of Independent Registered Public Accounting Firm included under Item 8 of this report.
Report of Independent Registered Public Accounting Firm
Statements of Financial Condition
Condensed Schedules of Investments
Statements of Operations
Statements of Changes in Partners Capital
Notes to Financial Statements
(2) | Financial statement schedules: |
All Schedules are omitted for the reason that they are not required or are not applicable because equivalent information has been included in the financial statements or the notes thereto.
(3) | Exhibits required to be filed by Item 601 of Regulation S-K: |
The following exhibits are included herewith.
Designation |
Description | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer | |
32.1 | Section 1350 Certification of Principal Executive Officer | |
32.2 | Section 1350 Certification of Principal Financial Officer | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
4
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 29th day of March, 2013.
ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P. |
(Registrant) |
By: Beeland Management Company, L.L.C. |
General Partner |
By: /s/ Walter Thomas Price III |
Walter Thomas Price III |
Managing Member |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the General Partner of the Registrant in the capacities and on the date indicated.
Title with General Partner |
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Signature |
Date | |||||
/s/ Walter Thomas Price III | Managing Member | March 29, 2013 | ||||
Walter Thomas Price III | (Principal Executive Officer) | |||||
/s/ Allen D. Goodman | Managing Member | March 29, 2013 | ||||
Allen D. Goodman | (Principal Financial and Accounting | |||||
Officer) |
(Being the principal executive officer and the principal financial and accounting officer, and a majority of the Managing Members of Beeland Management Company, L.L.C.)
5
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Walter Thomas Price III, certify that:
1. I have reviewed this annual report of Rogers International Raw Materials Fund, L.P.;
2. Based on my knowledge, this 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 report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition and results of operations of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 29, 2013
/s/ Walter Thomas Price III |
Walter Thomas Price III |
Managing Member (Chief Executive Officer) |
Beeland Management Company, L.L.C. |
General Partner, Rogers International Raw Materials Fund, L.P. |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Allen Goodman, certify that:
1. I have reviewed this annual report of Rogers International Raw Materials Fund, L.P.;
2. Based on my knowledge, this 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 report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition and results of operations of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 29, 2013
/s/ Allen Goodman |
Allen Goodman |
Managing Member (Chief Financial and Principal Accounting Officer) |
Beeland Management Company, L.L.C. |
General Partner, Rogers International Raw Materials Fund, L.P. |
Exhibit 32.1
CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
I, Walter Thomas Price III, certify that (i) the Annual Report of Rogers International Raw Materials Fund, L.P. (the Partnership) on Form 10-K for the period ending December 31, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in such Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
/s/ Walter Thomas Price III |
Walter Thomas Price III |
Managing Member (Chief Executive Officer) |
Beeland Management Company, L.L.C. |
General Partner, Rogers International Raw Materials Fund, L.P. |
March 29, 2013 |
Exhibit 32.2
CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
I, Allen Goodman, certify that (i) the Annual Report of Rogers International Raw Materials Fund, L.P. (the Partnership) on Form 10-K for the period ending December 31, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in such Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
/s/Allen Goodman |
Allen Goodman |
Managing Member (Chief Financial and Principal Accounting Officer) |
Beeland Management Company, L.L.C. |
General Partner, Rogers International Raw Materials Fund, L.P. |
March 29, 2013 |
Partnership Capital and Withdrawals (Details)
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12 Months Ended |
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Dec. 31, 2012
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Partnership Capital and Withdrawals (Textual) [Abstract] | |
Limit of request for withdrawals | The Partnership accepts withdrawals on a monthly basis. Requests for withdrawal should be received by the General Partner no later than six business days prior to the end of the month in which an investor chooses to withdraw. Requests for withdrawal should be sent to the General Partner by email, fax, or overnight courier |
Fair Value of Financial Instruments (Details) (USD $)
|
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Summary of Partnership's assets measured at fair value on recurring basis | ||
Unrealized (loss) on open futures contracts, net | $ (50,123) | $ (860,221) |
Fair value measurements, recurring [Member] | Level 1 [Member]
|
||
Summary of Partnership's assets measured at fair value on recurring basis | ||
Unrealized (loss) on open futures contracts, net | (50,123) | (860,221) |
Assets at fair value | 22,503,952 | 29,222,153 |
Fair value measurements, recurring [Member] | Level 1 [Member] | U.S. Government securities [Member]
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Summary of Partnership's assets measured at fair value on recurring basis | ||
Assets at fair value | 19,441,749 | 27,673,158 |
Fair value measurements, recurring [Member] | Level 1 [Member] | Money market funds [Member]
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Summary of Partnership's assets measured at fair value on recurring basis | ||
Assets at fair value | $ 3,112,326 | $ 2,409,216 |
Subsequent Events (Details) (Subsequent Event [Member], USD $)
|
12 Months Ended |
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Dec. 31, 2012
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Subsequent Event [Member]
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Subsequent Events (Textual) [Abstract] | |
Contributions to the Partnership | $ 25,117 |
Withdrawals from the Partnership | $ 1,119,082 |
Fair Value of Financial Instruments
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
Note 2. Fair Value of Financial Instruments: As described in Note 1, the Partnership records its investments at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following section describes the valuation techniques used by the Partnership to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized. The fair values of exchange traded futures contracts are based upon exchange settlement prices. Money market funds included in cash at brokers are valued using quoted market prices. U.S. Government securities are stated at cost plus accrued interest, which approximates fair value based on quoted prices for identical assets in an active market. These financial instruments are categorized in Level 1 of the fair value hierarchy.
The following table summarizes the Partnership’s assets measured at fair value on a recurring basis as of December 31, 2012 and 2011 using the fair value hierarchy:
During the years ended December 31, 2012 and 2011, there were no Level 2 or Level 3 assets or liabilities. The Partnership assesses the levels of assets and liabilities measured at fair value at each measurement date, and transfers between levels are recognized on the accrual date of the event or change in circumstances that caused the transfer. There were no transfers among Levels 1, 2, and 3 during the years ended December 31, 2012 and 2011. In addition, substantially all of the Partnership’s other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments. |