Attached files
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2011
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 333-119655
TriView Global Fund, LLC
(Exact name of registrant as specified in its charter)
Delaware 20-1689686
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
505 Brookfield Drive, Dover, DE 19901
(Address of principal executive offices, including zip code)
(800) 331-1532
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (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 [ ] No [ ] Not Applicable
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company. See
definition of large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [X] Smaller Reporting Company[ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Act).
Yes [ ] No [X]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) f the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ] Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. Not Applicable
Part 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
The reviewed financial statements for the Registrant for the six months ended
June 30, 2011 are attached hereto and made a part hereof.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
General Information
The Registrant (the "Fund") was granted an initial effective date by the
Securities and Exchange Commission ("SEC") on November 3, 2005. The Fund's
Registration Statement filed May 7, 2010 for $20,000,000 in face amount of
units of membership interests (the "Units") went effective with the SEC on
August 10, 2010. During the period of this report, the Fund had not yet
commenced business. The Fund's purpose, pursuant to the terms of the LLC
Operating Agreement, is to engage in the business of speculative and high risk
trading of commodity futures and options markets through the services of the
commodity trading advisors its management has selected. See Subsequent Events
at the end of this Item.
Description of Fund Business
The Fund grants one or more commodity trading advisors ("CTAs") a power of
attorney that is terminable at the will of either party to trade the equity
assigned to each CTA by Fund management. Upon sale of the minimum of Units,
trading will commence. The Managing Member has reserved the right to add and
delete CTAs and reallocate equity assigned as it shall determine, in its sole
discretion, without prior notice to the members (investors). A CTA has
discretion to select and enter trades, and does not disclose the methods it
uses to make those determinations in its disclosure documents, or to the Fund
or to Fund management. There is no promise or expectation of a fixed or any
other return to the investors. The investors must look solely to trading
profits for a return their investment as the interest income is expected to be
less than the fixed expenses to operate the Fund.
The CTA selected to trade on behalf of the Fund is GT Capital CTA, which is
paid a 1% management fee on Fund assets allocated to it to trade, along with a
20% incentive fee on New Net Profit, as that term is defined in the Fund's
prospectus. See Subsequent Events at the end of this Item for a description
of the fees to the corporate managing member and the affiliated introducing
broker, and for a description of the reimbursement of organizational and
offering expenses. Annual operating costs are estimated to be $25,000 if the
minimum is sold or $85,000 if the maximum is sold. There will be a twelve
month lock-in commencing from the date an investment is admitted to the Fund.
Assets
Upon acceptance of subscriptions and admission to the Fund, the Managing
Member deposits the subscription proceeds to the Fund's accounts, including
the account at the futures commission merchant to hold as security for the
trades selected by the commodity trading advisor. The Managing Member will
use its best efforts to put Fund equity not used for margin in accounts not
maintained by or accessible by the futures commission merchant (FCM). This
includes U.S. Treasuries held at the U.S. Treasury, investments in cash
management funds that invest in only U.S. Treasuries, and foreign treasuries
held with the respective issuing department of treasury, all held in the name
of the Fund. The Fund assets at the FCM will consist of cash used as margin
to secure futures (formerly called commodities) trades entered on its behalf
by the commodity trading advisors it selects. The futures held in the Fund
accounts at the FCM are valued at the market price on the close of business
each day by the FCM. The Capital accounts of the Members are immediately
responsible for all profit and losses incurred by trading and payment and
accrual of the expenses of offering membership interests for sale and the
operation of the Fund. The fixed costs of operation must be paid before the
members may earn a profit on their investment. See Subsequent Events at the
end of the section.
2
The Fund does not intend to borrow from third parties. Its trades are entered
pursuant to a margin agreement with the FCM, which obligates the fund to the
actual loss, if any, without reference or limit by the amount of cash posted
to secure the trade. The members are not personally liable for the debts of
the Fund, including any trading losses. As of the date of this Report, there
have been no offers or sales to non-affiliates of Units. Once a Unit has been
sold and redeemed, it will not be resold. Capital available will be dependent
upon the marketing and sales effort put in place by Fund management to sell
the registered membership interests. See Subsequent Events at the end of this
section.
An Investment in the Fund Depends upon Redemption of Fund Units
The Fund Units are not traded and they have no market value. Liquidity of an
investment in the Fund depends upon the credit worthiness of the exchanges,
brokers, and third parties of off exchange traded futures that hold Fund
equity or have a lien against Fund assets for payment of debts incurred.
Those parties must honor their obligations to the Fund for the Fund to be able
to obtain the return of its cash from the futures commission merchant that
holds the Fund account.
The commodity trading advisors select the markets and the off exchange
instruments to be traded. The Managing Member selects the futures commission
merchants to hold the Fund assets. The commodity trading advisors and the
Managing Member believe all parties who hold Fund assets or are otherwise
obligated to pay value to the Fund are credit worthy. Margin is an amount to
secure the entry of a trade and is not a limit of the profit or loss to be
gained from the trade. The Managing Member intends to allocate approximately
98% of the Fund equity to be used as margin to enter trades. Although it is
customary for the commodity trading advisors to use 40% or less of the equity
available as margin, there is no limit imposed by the Fund upon the amount of
equity the advisors may commit to margin. It is possible for the Fund to
suffer losses in excess of the margin it posts to secure the trades made.
To have the purchase price or appreciation, if any, of the Units paid to them,
members must use the redemption feature of the Fund. Distributions, although
possible in the sole discretion of the Managing Member, are not expected to be
made. There is no current market for the Units sold, none is expected to
develop and the LLC Operating Agreement limits the ability of a member to
transfer the Units.
Results of Operations
The initial start-up costs attendant to the sale of Units by use of a
Prospectus which has been filed with the Securities and Exchange Commission
are substantial. The Operating Agreement grants solely to the Managing Member
the right to select the CTAs and to otherwise manage the operation of the
Fund. See the Registration Statement, incorporated by reference herein, for
an explanation of the operation of the Fund.
Through the date of this Report, the Fund had not yet commenced business.
Therefore, for non-financial reporting purposes (subscription and redemption
purposes), its net asset value (NAV) per Unit of $1,000 and its total NAV of
$2,000 remained unchanged since inception and over the periods covered by this
report.
The Fund is subject to ongoing offering and operating expenses; however, upon
the commencement of business, profits or losses will be primarily generated by
the commodity trading advisors by methods that are proprietary to them. For
financial reporting purposes, the Fund experienced profits (losses) of
$(15.913) [$(7956.57) per Unit], and $(30,243) [$(15,121.50) per Unit] for the
three months ended June 30, 2011 and June 30, 2010. For the six months end
June 30, 2011 and June 30, 2010, the Fund experienced (losses) of $(30,847)
[$(15,423.32) per Unit] and $(43,821) [$(21,910.50) per Unit], respectively.
The variation in losses over the periods was primarily due to different costs
incurred to maintain the registration of Units pursuant to a previous
registration statement in the 2010 periods versus the costs to update a newer
registration statement in the 2011 periods. These results are not to be
construed as an expectation of similar profits or losses in the future
The Fund has not paid any commissions or earned any interest income. The Fund
did not have any additions or withdrawals during the last two years, as of the
date of this report, as it had not yet commenced business.
3
Subsequent Events
The Fund filed a post effective amendment to its form S-1 registration
statement, which was granted effectiveness on July 6, 2011, to lower the
minimum need to commence business to $1,000,000, to change the fees to the
corporate managing member and introducing broker, and to update its
performance and financials. On July 7, 2011, the Fund had sold approximately
$1,374,000 in Units and commenced business. At such time, the Fund began to
reimburse the managing member and its affiliates for offering and
organizational of $289,622, though payment will not exceed 15% of gross
subscription proceeds at any time. Such expenses will be amortized by the
Fund over 60 months on a straight line basis, or paid off sooner at the
managing member's discretion.
Through August 31, 2011, the Fund will pay the corporate managing member a
2.5% annual management fee calculated on the prior month-end net assets, and
pay brokerage commissions to the affiliated introducing broker of $15 per
round turn. Beginning September 1, 2011, the aforementioned fees will no
longer be paid. Instead, the Fund will pay fixed annual brokerage commissions
of 10%, calculated on the prior month-end net assets, with 2.5% to the
corporate managing member and 7.5% to the introducing broker, paid monthly.
In its July 6, 2011 prospectus, the managing member had estimated the round
turn brokerage of $15 would approximate 7.5% annually of Fund net assets.
Accordingly, the managing member does not believe the total fees charged to
the Fund will change.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The business of the Fund is speculative and involves a high degree of risk of
loss. See the Fund's Registration Statement and prospectus contained therein,
incorporated herein, for a full description of the risks attendant to Fund
business.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
The Registrant has adopted procedures in connection with the operation of its
business including, but not limited to, the review of account statements sent
to the Managing Member before the open of business each day that disclose the
positions held overnight in the Fund accounts, the margin to hold those
positions, and the amount of profit or loss on each position, and the net
balance of equity available in each account. The Fund brokerage account
statements and financial books and records accounts are prepared by an
independent CPA Firm and then are reviewed each quarter and audited each year
by a different independent CPA firm.
The Managing Member of the Fund, under the actions of its sole principal,
Michael Pacult, has evaluated the effectiveness of the design and operation of
its disclosure controls and procedures (as defined in the Securities Exchange
Act of 1934 Rules 13a-15(e) or 15d-15(e)) with respect to the Fund as of the
end of the period covered by this Report. Based on their evaluation, Mr.
Pacult has concluded that these disclosure controls and procedures are
effective.
Changes in Internal Control over Financial Reporting
There were no changes in the Managing Member's internal control over financial
reporting during the quarter ended June 30, 2011 that have materially
affected, or are reasonably likely to materially affect, internal control over
financial reporting applicable to the Fund.
Part II - OTHER INFORMATION
Item 1. Legal Proceedings
There have been no legal proceedings against the Fund, its Managing Member,
the IB or any of their Affiliates, directors or officers. Other than as
described below, neither the CTA, GT Capital CTA, nor its principal, Mr.
Teitelbaoum, has been involved in any material administrative, civil or
criminal action, within the five years preceding the date of this disclosure
document, or at any time in the past.
4
On August 24, 2009, a lawsuit was filed against Mr. Teitelbaoum and two other
parties. The complaint alleges that Mr. Teitelbaoum and the other defendants
failed to properly compensate the plaintiff for marketing services. Mr.
Teitelbaoum vehemently denies all allegations of wrongdoing and plans to
vigorously defend the lawsuit.
The FCMs, MF Global Inc. and Vision Financial Services LLC, have had the
following described reportable events, none of which, in the opinion of the
FCM, is material to the performance of the FCMs on behalf of the Fund's
account:
Vision Financial Services LLC
On May 18, 2011, simultaneously with the issuance of a complaint by the NFA,
Vision Financial Markets LLC ("Vision") consented to a finding based on a one-
count complaint for failure to supervise guaranteed IBs in violation of NFA
Compliance Rule 2-9(a). The alleged activities occurred prior to 2009.
Without admitting or denying the findings in the Committee's Decision, Vision
consented to pay a fine of $500,000 and to retain an independent consultant to
review its supervisory procedures relating to guaranteed IBs. Vision
undertook to implement revised procedures for supervising GIBs within 6
months. Finally, Vision consented to a restriction on guaranteeing new
introducing brokers until 2013, unless it petitions the NFA to lift the
restriction earlier.
MF Global Inc.
In May 2006, MFI was sued by the Receiver for Philadelphia Alternate Asset
Fund ("PAAF") and associated entities for common law negligence, common law
fraud, violations of the Commodity Exchange Act and RICO violations (the
"Litigation"). In December 2007, without admitting any liability of any party
to the Litigation to any other party to the Litigation, the Litigation was
settled with MFI agreeing to pay $69 million, plus $6 million of legal
expenses, to the Receiver, in exchange for releases from all applicable
parties and the dismissal of the Litigation with prejudice. In a related
action, MFI settled a CFTC administrative proceeding (In the Matter of MF
Global, f/k/a Man Financial Inc., and Thomas Gilmartin) brought by the CFTC
against MFI and one of its employees for failure to supervise and
recordkeeping violations. Without admitting or denying the allegations, MFI
agreed to pay a civil monetary penalty of $2 million and accept a cease and
desist order.
On February 20, 2007, MFI settled a CFTC administrative proceeding (In the
Matter of Steven M. Camp and Man Financial Inc., CFTC Docket No. 07-04) in
which MFI was alleged to have failed to supervise one of its former associated
persons ("AP") who was charged with fraudulently soliciting customers to open
accounts at MFI. The CFTC alleged that the former AP misrepresented the
profitability of a web-based trading system and of a purported trading system
to be traded by a commodity trading advisor. Without admitting or denying the
allegation, MFI agreed to pay restitution to customers amounting to
$196,900.44 and a civil monetary penalty of $120,000. MFI also agreed to a
cease and desist order and to strengthen its supervisory system for overseeing
sales solicitations by employees in connection with accounts to be traded
under letters of direction in favor of third party system providers.
On March 6, 2008, and thereafter, 5 virtually identical proposed class action
securities suits were filed against MFG's parent, MF Global Ltd. (now, MF
Global Holdings Ltd.) ("MF Global"), certain of its officers and directors,
and Man Group plc. These suits have now been consolidated into a single
action. The complaints seek to hold defendants liable under Secs. 11, 12 and 15
of the Securities Act of 1933 by alleging that the registration statement and
prospectus issued in connection with MF Global's initial public offering in
July 2007 were materially false and misleading to the extent that
representations were made regarding MF Global's risk management policies,
procedures and systems. The allegations are based upon MF Global's disclosure
of $141.5 million in trading losses incurred in a single day by an AP in his
personal trading account ("Trading Incident"), which losses MFG was
responsible to pay as an exchange clearing member. The consolidated cases
have been dismissed on a motion to dismiss by defendants. Plaintiffs have
appealed. In January 2011, the parties reached a preliminary agreement to
settle whereby MF Global will contribute $2.5 million to an overall settlement
amount of $90 million. The preliminary settlement will be subject to Court
review and final approval.
5
On December 17, 2009, MFG settled a CFTC administrative proceeding in
connection with the Trading Incident and three other matters without admitting
or denying any allegations and accepting a charge of failing to supervise (In
the Matter of MF Global Inc. CFTC Docket No. 10-03). The three additional
matters that were settled involved allegations that MF Global failed to
implement procedures to ensure proper transmissions of price information for
certain options that were sent to a customer, specifically that the price
indications reflected a consensus taken on [a particular] time and date and
were derived from different sources in the market place; failed to diligently
supervise the proper and accurate preparation of trading cards and failed to
maintain appropriate written authorization to conduct trades for a certain
customer. Under the Commission's order, MFG agreed to pay an aggregate civil
monetary penalty of $10 million (which it had previously accrued) and agreed
to a cease and desist order. In addition, MFG agreed to specific undertakings
related to its supervisory practices and procedures and MFG agreed that it
would engage an independent outside firm to review and assess the
implementation of the undertakings and certain recommendations that MFG
previously accepted. At the same time, MFG, without admitting or denying the
allegations made by the CME, settled a CME disciplinary action relating to the
Trading Incident by paying a fine of $495,000.
On August 28, 2009, Bank of Montreal ("BMO") instituted suit against MFG and
its former broker, Joseph Saab ("Saab") (as well as a firm named Optionable,
Inc. and five of its principals or employees), in the United States District
Court for the Southern District of New York. In its complaint, BMO asserts
various claims against all defendants for their alleged misrepresentation of
price quotes to BMO's Market Risk Department ("MRD") as independent quotes
when defendants knew, or should have known, that David Lee ("Lee"), BMO's
trader, created the quotes which, in circular fashion, were passed on to BMO
through MFG's broker, thereby enabling Lee substantially to overvalue his book
at BMO. BMO further alleges that MFG and Saab knew that Lee was fraudulently
misrepresenting prices in his options natural gas book and aided and abetted
his ability to do so by MFG's actions in sending price indications to the BMO
MRD, and substantially assisted Lee's breach of his fiduciary duties to BMO as
its employee. The Complaint seeks to hold all defendants jointly and
severally liable and, although it does not specify an exact damage claim, it
claims CAD 680.0 million (approximately $635.9 million) as a pre-tax loss for
BMO in its natural gas trading, claims that it would not have paid brokerage
commissions to MFG (and Optionable), would not have continued Lee and his
supervisor as employees at substantial salaries and bonuses, and would not
have incurred substantial legal costs and expenses to deal with the Lee
mispricing. MFG has made a motion to dismiss, which was denied.
In or about October 2003, MFI uncovered an apparent fraudulent scheme
conducted by third parties unrelated to MFI that may have victimized a number
of its clients. CCPM, a German Introducing Broker, introduced to MFI all the
clients that may have been victimized. An agent of CCPM, Michael Woertche
(and his asssociates), apparently engaged in a Ponzi scheme in which allegedly
unauthorized transfers from and trading in accounts maintained at MFI were
utilized to siphon money out of these accounts, on some occasions shortly
after they were established. MFI was involved in two arbitration proceedings
relating to these CCPM introduced accounts. The first arbitration involved
claims made by two claimants before a NFA panel. The second arbitration
involves claims made by four claimants before a FINRA panel. The claims in
both arbitrations are based on allegations that MFI and an employee assisted
CCPM in engaging in, or recklessly or negligently failed to prevent,
unauthorized transfers from, and trading in, accounts maintained by MFI.
Damages sought in the NFA arbitration proceeding were approximately $1,700,000
in compensatory damages, unspecified punitive damages and attorney's fees in
addition to the rescission of certain deposit agreements. The NFA arbitration
was settled for $200,000 as to one claimant and a net of $240,000 as to the
second claimant during fiscal 2008. Damages sought in the FINRA proceeding
were approximately $6,000,000 in compensatory damages and $12,000,000 in
punitive damages. During the year ended March 31, 2009, the FINRA arbitration
was settled for an aggregate of $800,000.
The Liquidation Trustee ("Trustee") for Sentinel Management Group, Inc.
("Sentinel") sued MFG in June 2009 on the theory that MFG's withdrawal of
$50.2 million within 90 days of the filing of Sentinel's bankruptcy petition
on August 17, 2007 is a voidable preference under Section 547 of the
Bankruptcy Code and, therefore, recoverable by the Trustee, along with
interest and costs.
In May 2009, investors in a venture set up by Nicholas Cosmo ("Cosmo") sued
Bank of America and MFG, among others, in the United States District Court for
the Eastern District of New York, alleging that MFG, among others, aided and
abetted Cosmo and related entities in a Ponzi scheme in which investors lost
$400 million. MFG has made a motion to dismiss which was granted and cannot be
appealed by plaintiffs until the conclusion of the case against the Bank of
America.
6
In December 2010, the Court-appointed receiver for Joseph Forte, L.P., ("Forte
Partnership") filed a complaint in the United States District Court for the
Eastern District of Pennsylvania, alleging that MFG was negligent in the
handling of a futures account the Forte Partnership maintained at MFG. The
Complaint alleges that as a result of MFG's negligence, Joseph Forte ("Forte")
was able to operate a Ponzi scheme in which he misappropriated at least
$25,000,000 from limited partners in the Forte Partnership. The Complaint
seeks damages "in excess of $150,000." MFG has not been served with the
complaint.
In the late spring of 2009, MFG was sued in Oklahoma State Court by customers
who were substantial investors with Mark Trimble ("Trimble") and/or
Phidippides Capital Management ("Phidippides"). Trimble and Phidippides may
have been engaged in a Ponzi scheme. Plaintiffs allege that MFG "materially
aided and abetted" Trimble's and Phidippides' violations of the anti-fraud
provisions of the Oklahoma securities laws and they are seeking damages "in
excess of" $10,000 each. MFG made a motion to dismiss which was granted by the
court. Plaintiffs have appealed.
In the late spring of 2009, MFG was sued in Oklahoma State Court by customers
who were substantial investors with Mark Trimble ("Trimble") and/or
Phidippides Capital Management ("Phidippides"). Trimble and Phidippides may
have been engaged in a Ponzi scheme. Plaintiffs allege that MFG "materially
aided and abetted" Trimble's and Phidippides' violations of the anti-fraud
provisions of the Oklahoma securities laws and they are seeking damages "in
excess of" $10,000 each. MFG made a motion to dismiss which was granted by the
court. Plaintiffs have appealed.
On August 4, 2010, MFG was added as a defendant to a consolidated class action
complaint filed against Moore Capital Management and related entities in the
United States District Court for the Southern District of New York alleging
claims of manipulation and aiding and abetting manipulation, in violation of
the Commodity Exchange Act. Specifically, the complaint alleges that, between
October 25, 2007 and June 6, 2008, Moore Capital directed MFG, as its
executing broker, to enter "large" market on close orders (at or near the time
of the close) for platinum and palladium futures contracts, which allegedly
caused artificially inflated prices. On August 10, 2010, MFG was added as a
defendant to a related class action complaint filed against the Moore-related
entities on behalf of a class of plaintiffs who traded the physical platinum
and palladium in the relevant time frame, which alleges price fixing under the
Sherman Act and violations of the civil Racketeer Influenced and Corrupt
Organizations Act. On September 30, 2010 plaintiffs filed an amended
consolidated class action complaint that includes all of the allegations and
claims identified above on behalf of subclasses of traders of futures
contracts of platinum and palladium and physical platinum and palladium.
Plaintiffs' claimed damages have not been quantified. This matter is in its
earliest stages.MFG and an affiliate, MF Global Market Services LLC ("Market
Services"), are currently involved in litigation with a former customer of
Market Services, Morgan Fuel & Heating Co., Inc. ("Morgan Fuel") and its
principals, Anthony Bottini, Jr., Brian Bottini and Mark Bottini (the
"Bottinis"). The litigations arise out of trading losses incurred by Morgan
Fuel in over-the-counter derivative swap transactions, which were
unconditionally guaranteed by the Bottinis.
On October 6, 2008, Market Services commenced an arbitration against the
Bottinis to recover $8.3 million, which is the amount of the debt owed to
Market Services by Morgan Fuel after the liquidation of the swap transactions.
MF Global Market Services LLC v. Anthony Bottini, Jr., Brian Bottini and Mark
Bottini, FINRA No. 08-03673. Each of the Bottinis executed a guaranty in favor
of Market Services personally and unconditionally guaranteeing payment of the
obligations of Morgan Fuel upon written demand by Market Services. Market
Services asserted a claim of breach of contract based upon the Bottinis'
failure to honor the guarantees.
On October 21, 2008, Morgan Fuel commenced a separate arbitration proceeding
before FINRA against MFG and Market Services. Morgan Fuel claims that MFG and
Market Services caused Morgan Fuel to incur approximately $14.2 million in
trading losses. Morgan Fuel v. MFG and Market Services, FINRA No. 08-03879.
Morgan Fuel seeks recovery of $5.9 million in margin payments that it
allegedly made to Market Services and a declaration that it has no
responsibility to pay Market Services for the remaining $8.3 million in
trading losses because Market Services should not have allowed Morgan Fuel to
enter into, or maintain, the swap transactions. On MFG's motion, the Supreme
Court of the State of New York determined that there was no agreement to
arbitrate such claims. Morgan Fuel appealed and all appeals were denied.
7
The Bottinis also asserted a third-party claim against Morgan Fuel, which in
turn asserted a fourth-party claim against MFG, Market Services and Steven
Bellino (an MFG employee) in the arbitration proceeding commenced by Market
Services. The Supreme Court of the State of New York denied a motion to stay
the fourth party claim but the denial to stay was reversed. Morgan Fuel filed
a motion to appeal with the New York Court of Appeals which was denied.
On December 12, 2008, MFG settled three CME Group disciplinary actions
involving allegations that on a number of occasions in 2006 and 2007, MFG
employees engaged in impermissible pre-execution communications in connection
with trades executed on the e-cbot electronic trading platform, withheld
customer orders that were executable in the market for the purpose of
soliciting, and brokering contra-orders and crossed orders on the e-cbot
trading platform without allowing for the minimum required exposure period
between the entry of the orders. MFG was also charged with failing to properly
supervise its employees in connection with these trades. Without admitting or
denying any wrongdoing, MFG consented to an order of a CME Business Conduct
Committee Panel which found that MFG violated legacy CBOT Rule 504.00 and
Regulations 480.10 and 9B.13 and 9B.13(c) and ordered MFG to pay a $400,000
fine, cease and desist from similar conduct and, in consultation with CME
Market regulation Staff, enhance its training practices and supervisory
procedures regarding electronic trading practices.
The FCMs only act as clearing brokers for the Fund's futures accounts and as
such they may have been paid commissions for executing and clearing trades.
Neither FCM has not passed upon the adequacy or accuracy of the Fund's
prospectus or this report and will not act in any supervisory capacity with
respect to the CPO or the CTA, as the case may be, nor participate in the
management of the CPO or of the Fund or of the CTA. Therefore, investors
should not rely on the FCMs in deciding whether or not to participate in the
Fund.
The Fund is not aware of any threatened or potential claims or legal
proceedings to which the Fund is a party or to which any of its assets are
subject. The FCMs have represented to the Managing Member that that none of
the events reported above would interfere with their performance as a clearing
broker for the Fund's account.
Item 1A. Risk Factors
There have been no material changes from risk factors as previously disclosed
in the Fund's 2010 Form 10-K. The risks of the Fund are (1) described fully
in its prospectus filed with its registration statement on Form S-1, which is
incorporated herein by reference (2) described in summary in Part I of this
Form 10-Q, which is incorporated herein by reference.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities
None
Item 4. (Removed and Reserved)
Not Applicable.
Item 5. Other Information
(a) None
(b) None
8
Item 6. Exhibits
31.1 Certification of Principal Executive Officer and Principal Financial
Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
101.INS The Registrant will amend this report within 30 days to include
its financial statements in XBRL format.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Form 10-Q for the
period ended June 30, 2011, to be signed on its behalf by the undersigned,
thereunto duly authorized.
Registrant:
TriView Global Fund, LLC
By TriView Capital Management, Inc.
Its Managing Member
By: /s/ Michael Pacult
Mr. Michael Pacult
Sole Director, Sole Shareholder,
President, and Treasurer of the Managing Member
Date: August 15, 2011
9
TRIVIEW GLOBAL FUND, LLC
(A Development Stage Enterprise)
QUARTERLY REPORT
June 30, 2011
MANAGING MEMBER:
Triview Capital Management, Inc.
% Corporate Systems, Inc.
505 Brookfield Drive
Dover, Kent County, Delaware 19901
INDEX TO FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Accounting Firm F-2
Statements of Assets and Liabilities F-3
Statements of Operations F-4
Statements of Changes in Net Assets F-5
Statements of Cash Flows F-6
Notes to the Financial Statements F-7 - F-11
Affirmation of the Commodity Pool Operator F-12
F-1
Patke & Associates, Ltd.
Certified Public Accountants
Report of Independent Registered Public Accounting Firm
To the Members of
TriView Global Fund, LLC
Dover, Delaware
We have reviewed the accompanying statements of assets and liabilities of
TriView Global Fund, Limited Liability Company (a development stage
enterprise), as of June 30, 2011 and the related statements of operations for
the three and six months ended June 30, 2011 and 2010 and the cumulative
period from October 1, 2004 (date of inception) to June 30, 2011, and the
statements of changes in net assets and cash flows for the six months ended
June 30, 2011 and 2010 and the cumulative period from October 1, 2004 (date of
inception) to June 30, 2011. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with the
standards of the Public Company Accounting Oversight Board (United States),
the objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to such interim financial statements for them to be in
conformity with accounting principles generally accepted in the United States
of America.
We have previously audited, in accordance with the auditing standards of the
Public Company Accounting Oversight Board (United States), the statement of
assets and liabilities of TriView Global Fund, Limited Liability Company as of
December 31, 2010 and the related statements of operations, changes in net
assets and cash flows for the year then ended (not presented herein) and in
our report dated February 24, 2011, we expressed an unqualified opinion on
those financial statements. In our opinion, the information set forth in the
accompanying statement of assets and liabilities as of December 31, 2010 is
fairly stated, in all material respects, in relation to the statement of
assets and liabilities from which it has been derived.
/s/ Patke & Associates, Ltd.
Patke & Associates, Ltd.
Lincolnshire, Illinois
August 10, 2011
300 Village Green Drive, Suite 210 * Lincolnshire, Illinois 60069
Phone: (847) 913-5400 * Fax: (847) 913-5435
F-2
TriView Global Fund, LLC
(A Development Stage Enterprise)
Statements of Assets and Liabilities
June 30, December 31,
2011 2010
(A Review)
Assets
Equity in broker trading accounts
Cash and cash equivalents at broker $100 $-
Total equity in broker trading accounts 100 -
Cash 369 405
Prepaid expenses - 4,481
Total assets 469 4,886
Liabilities
Accrued expenses - 920
Due to related parties 289,622 262,272
Total liabilities 289,622 263,192
Net assets $(289,153) $(258,306)
Analysis of net assets
Members $(144,577) $(129,153)
Managing members (144,577) (129,153)
Net assets (equivalent to $(144,576.34)
and $(129,153.02) per unit) $(289,153) $(258,306)
Membership units outstanding
Non-managing member units outstanding 1.00 1.00
Managing members units outstanding 1.00 1.00
Total membership units outstanding 2.00 2.00
The accompanying notes are an integral part of the financial statements.
F-3
TriView Global Fund, LLC
(A Development Stage Enterprise)
Statements of Operations
(A Review)
Cumulative
Period From
October 1, 2004
(Inception)
Three Months Ended June 30, Six Months Ended June 30, to June 30,
2011 2010 2011 2010 2011
Investment income
Other income $- $- $- $- $20,000
Total investment income - - - - 20,000
Expenses
Professional fees 10,571 22,023 19,355 29,573 182,840
Other operating expenses 5,342 8,220 11,492 14,248 84,845
Total expenses 15,913 30,243 30,847 43,821 267,685
Net investment (loss) (15,913) (30,243) (30,847) (43,821) (247,685)
Net (decrease) in net assets resulting from operations $(15,913) $(30,243) $(30,847) $(43,821) $(247,685)
Net (decrease) per unit (for a single unit outstanding
during the entire period)
Member unit $(7,956.57) $(15,121.50) $(15,423.32) $(21,910.50) $(123,842.32)
Managing member unit (7,956.57) (15,121.50) (15,423.32) (21,910.50) (123,842.32)
The accompanying notes are an integral part of the financial statements.
F-4
TriView Global Fund, LLC
(A Development Stage Enterprise)
Statements of Changes in Net Assets
(A Review)
Cumulative Period From
Six Months Ended June 30, October 1, 2004 (Inception)
2011 2010 to June 30, 2011
Units Net Assets Units Net Assets Units Net Assets
(Decrease) in net assets from operations
Net investment (loss) $(30,847) $(43,821) $(247,685)
Net (decrease) in net assets resulting from operations (30,847) (43,821) (247,685)
Capital contributions from members - - 2.00 2,000
Initial offering costs - - (43,468)
Total (decrease) in net assets - (30,847) - (43,821) 2.00 (289,153)
Net assets at the beginning of the period 2.00 (258,306) 2.00 (196,436) - -
Net assets at the end of the period 2.00 $(289,153) 2.00 $(240,257) 2.00 $(289,153)
The accompanying notes are an integral part of the financial statements.
F-5
TriView Global Fund, LLC
(A Development Stage Enterprise)
Statements of Cash Flows
(A Review)
Cumulative
Period From
October 1, 2004
(Inception) to
Six Months Ended June 30, June 30,
2011 2010 2011
Cash Flows from Operating Activities
Net (decrease) in net assets resulting from operations $(30,847) $(43,821) $(247,685)
Adjustments to reconcile net (decrease) in net assets from
operations to net cash (used in) operating activities:
(Increase) decrease in prepaid expenses 4,481 (3,296) -
(Decrease) in accrued expenses (920) (3,817) -
Net cash (used in) operating activities (27,286) (50,934) (247,685)
Cash Flows from Investing Activities
Initial offering costs - - (43,468)
Net cash (used in) investing activities - - (43,468)
Cash Flows from Financing Activities
Increase in due to related parties 27,350 47,500 289,622
Initial member capital contributions - - 2,000
Net cash provided by financing activities 27,350 47,500 291,622
Net increase (decrease) in cash 64 (3,434) 469
Cash at the beginning of the period 405 363 -
Cash at the end of the period $469 $(3,071) $469
Non-Cash Activities
Initial offering costs charged to net assets $- $- $43,468
The accompanying notes are an integral part of the financial statements.
F-6
TriView Global Fund, LLC
(A Development Stage Enterprise)
Notes to the Financial Statements
June 30, 2011
(A Review)
1. Nature of the Business
TriView Global Fund, LLC (the "Fund") was formed on October 1, 2004 under
the laws of the State of Delaware. The Fund expects to engage in high risk,
speculative and hedge trading of futures and forward contracts, options on
futures and forward contracts, and other instruments selected by registered
commodity trading advisors ("CTA's"). TriView Capital Management, Inc. (the
"Corporate Managing Member") and Michael Pacult (the "Individual Managing
Member" and collectively the "Managing Member") are the managing members and
commodity pool operators ("CPO's") of the Fund. The initial CTA is GT Capital
CTA ("GT Capital"), which will have the authority to trade as much of the
Fund's equity as is allocated to it by the Managing Member. The selling agent
and introducing broker is Futures Investment Company ("FIC"), which is owned
and operated by Michael Pacult and his wife.
The Fund was in the development stage and its efforts through June 30, 2011
were principally devoted to organizational activities. The Fund sells units of
member ship interest (the "Units") pursuant to a prospectus granted
effectiveness July 6, 2011. By July 7, 2011, it had sold approximately
$1,374,000 of Units, which was in excess of the minimum offering requirement
of $1,000,000. The maximum offering amount is $20,000,000.
Regulation - The Fund is a registrant with the Securities and Exchange
Commission ("SEC") pursuant to the Securities Act of 1933. The Fund is
subject to the regulations of the SEC and the reporting requirements of the
Securities and Exchange Act of 1934, and of the rules and regulations of the
Financial Industry Regulation Authority ("FINRA"). The Fund is also be
subject to the regulations of the Commodities Futures Trading Commission
("CFTC"), an agency of the U.S. government, which regulates most aspects of
the commodity futures industry, the rules of the National Futures Association
and the requirements of various commodity exchanges where the Fund executes
transactions. Additionally, the Fund is subject to the requirements of futures
commission merchants ("FCM's") and interbank market makers through which the
Fund trades.
2. Significant Accounting Policies
Offering Expenses and Organizational Costs - For financial reporting
purposes in conformity with accounting principles generally accepted in the
United States of America ("GAAP"), on the Fund's initial effective date,
November 3, 2005, the Fund deducted from members' capital the total initial
offering costs of $43,468, as of that date, and began expensing all subsequent
offering costs. Organizational and operating costs are expensed as incurred
for GAAP purposes. For all other purposes, including determining the Net Asset
Value per Unit for subscription and redemption purposes, the Fund will
capitalize all offering, organizational and operating costs until commencement
of business, at which time the costs will be expensed and amortized on a
straight line basis for 60 months. The commencement of business occurred July
7, 2011 (see note 1). The Fund has agreed to reimburse the Corporate Managing
Member and other affiliated companies for all offering, organizational and
operating expenses they have paid up to the commencement of business, except
for $20,000. These net reimbursement amounts have accumulated to $289,622 and
$262,272 as of June 30, 2011 and December 31, 2010, respectively.
As of June 30, 2011 and December 31, 2010, the Net Asset Value and Net Asset
Value per Unit for financial reporting purposes and for all other purposes are
as follows:
Balance Per Unit Calculation
June 30, December 31, June 30, December 31,
2011 2010 2011 2010
Net Asset Value for financial reporting purposes $(289,153) $(258,306) $(144,576.34) $(129,153.02)
Adjustment for initial offering costs 43,468 43,468 21,734.00 21,734.00
Adjustment for other offering, organizational
and operating expenses 247,685 216,838 123,842.34 108,419.02
Net Asset Value for all other purposes $2,000 $2,000 $1,000.00 $1,000.00
Number of Units 2.00 2.00
Registration Costs - Costs incurred for the initial filings with SEC, FINRA
and the states where the offering is expected to be made are included in the
offering expenses and, accordingly, are accounted for as described above under
"Offering Expenses and Organizational Costs".
F-7
TriView Global Fund, LLC
(A Development Stage Enterprise)
Notes to the Financial Statements
June 30, 2011
(A Review)
2. Significant Accounting Policies - Continued
Revenue Recognition - Forward contracts, futures and other investments are
recorded on the trade date and will be reflected in the statement of
operations at the difference between the original contract amount and the fair
value on the last business day of the reporting period.
Fair value of forward contracts, futures and other investments is based upon
exchange or other applicable closing quotations related to the specific
positions.
Interest income will be recognized when it is earned.
Other Income - Other income consists of $20,000 of offering and
organizational costs which were previously incurred, but were subsequently
absorbed in accordance with the S-1, which was approved by the SEC on August
10, 2010.
Use of Accounting 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
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from these estimates.
Income Taxes - The Fund is not required to provide a provision for income
taxes. Income tax attributes that arise from its operations are passed
directly to the individual members. The Fund may be subject to state and
local taxes in jurisdictions in which it operates.
Management has continued to evaluate the application of Financial Accounting
Standards Board ("FASB") Accounting Standards Codification ("ASC") 740,
"Income Taxes" to the Fund and has determined that ASC 740 does not have a
material impact on the Fund's financial statements. The Fund files federal and
state tax returns. The 2007 through 2010 tax years generally remain subject to
examination for the U.S. federal and most state tax authorities.
Statement of Cash Flows - Net cash used in operating activities includes no
cash payments for interest or income taxes for the six months ended June 30,
2011 and 2010.
Reclassifications - Certain prior year amounts were reclassified to conform
to current year presentation
Fair Value Measurement and Disclosures - ASC 820 establishes a fair value
hierarchy which prioritizes the inputs to valuation techniques used to measure
fair value into three broad levels. The fair value hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to
unobservable inputs (Level 3 measurements).
Level 1 inputs are unadjusted quoted prices in active markets for identical
assets or liabilities that the Fund has the ability to access at the
measurement date.
Level 2 inputs are inputs other than quoted prices included in Level 1 that
are observable for the asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability, including
the Fund's own assumptions used in determining the fair value of investments.
Unobservable inputs shall be used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity for the asset or liability at the
measurement date. As of and for the six months ended June 30, 2011 and the
year ended December 31, 2010, the Fund had no investments.
F-8
TriView Global Fund, LLC
(A Development Stage Enterprise)
Notes to the Financial Statements
June 30, 2011
(A Review)
3. Managing Member Duties
The responsibilities of the Managing Member, in addition to directing the
trading and investment activity of the Fund, including suspending all trading,
includes executing and filing all necessary legal documents, statements and
certificates of the Fund, retaining independent public accountants to audit
the Fund, employing attorneys to represent the Fund, reviewing the brokerage
commission rates to determine reasonableness, maintaining the tax status of
the Fund, maintaining a current list of the names, addresses and numbers of
units owned by each Member and taking such other actions as deemed necessary
to manage the business of the Company.
The Corporate Managing Member has contributed $1,000 in cash for deposit to
the capital of the Fund for a managing member interest in the Company.
If the net unit value of the Fund falls to less than 50% of the greater of
the original $1,000 selling price, less commissions and other charges or such
higher value earned through trading, then the Managing Member will immediately
suspend all trading, provide all members with notice of the reduction in net
unit value and give all members the opportunity, for fifteen days after such
notice, to redeem Units. No trading shall commence until after the lapse of
such fifteen day period.
4. The Limited Liability Company Agreement
The LLC Operating Agreement provides, among other things, that-
Capital Account - A capital account shall be established for each member.
The initial balance of each member's capital account shall be the amount of
the initial contributions to the Fund.
Monthly Allocations - Any increase or decrease in the Fund's net asset value
as of the end of a month shall be credited or charged to the capital account
of each Member in the ratio that the balance of each account bears to the
total balance of all accounts.
Any distribution from profits or members' capital will be made solely at the
discretion of the Managing Member.
Federal Income Tax Allocations - As of the end of each fiscal year, the
Fund's realized capital gain or loss and ordinary income or loss shall be
allocated among the Members, after having given effect to the fees and
expenses of the Fund.
Subscriptions - Investors must submit subscription agreements and funds at
least five business days prior to month end. Subscriptions must be accepted
or rejected by the Managing Member within five business days. The investor
also has five business days to withdraw his subscription. Funds are deposited
into an interest bearing subscription account and will be transferred to the
Fund's account after the minimum to commence business has been raised and,
thereafter, on the first business day of the month after the subscription is
accepted. Interest earned on the subscription funds will accrue to the
account of the investor.
Redemptions - A member may request any or all of his investment be redeemed
at the net asset value as of the end of a month. Unless this requirement is
waived, the written request must be received by the managing member no less
than ten business days prior to a month end. Redemptions will generally be
paid within twenty days of the effective month end. However, in various
circumstances due to liquidity, etc. the Managing Member may be unable to
comply with the request on a timely basis. There will be no redemption fee;
however there will be a twelve month lock-in commencing from the date of
admission of an investment.
5. Fees
The Fund was initially charged the following fees after the commencement of
trading.
A monthly management fee of 2.5% (annual rate) paid to the Corporate
Managing Member, calculated on the Fund's prior month-end net assets.
A monthly management fee of 1% (annual rate) paid to GT Capital calculated
on the prior month-end equity allocated to it to trade.
A quarterly incentive fee of 20% of new net profits paid to GT Capital.
Brokerage commissions to the Fund's affiliated introducing broker, FIC, of
$15 per round turn.
The Managing Member has reserved the right to implement a management fee and
change the incentive fee at its sole discretion. The total incentive fees may
be increased to 27% if the management fee is zero. The Fund may also increase
the total management fees paid to the CTA's and Corporate Managing Member to
6% of total net assets if the total incentive fees are decreased to 15%.
As of September 1, 2011, the Fund will no longer pay FIC round turn
brokerage commissions and will no longer pay the Corporate Managing Member a
management fee. In stead, the Fund will be charged 10% (annual rate) fixed
brokerage commissions, paid monthly, calculated on the prior month-end net
assets, with 7.5% paid to FIC and 2.5% to the Corporate Managing Member. The
Managing Member had estimated in its prospectus dated July 6, 2011 that the
$15 per round turn brokerage commissions would amount to 7.5% annually.
Accordingly, total fees are estimated to remain the same as a result of this
change.
F-9
TriView Global Fund, LLC
(A Development Stage Enterprise)
Notes to the Financial Statements
June 30, 2011
(A Review)
6. Related Party Transactions
The sole shareholder of the Corporate Managing Member made an initial member
capital contribution in the Fund of $1,000. He is also the sole shareholder
of Ashley Capital Management, Inc. (the general partner of another commodity
pool), which along with the shareholder and other affiliates, has temporarily
funded the syndication costs incurred by the Fund to date. A variable
interest entity relationship exists between Corporate Managing Member and the
Fund.
In the normal course of business, the Fund has provided general
indemnifications to the Managing Member, its CTA's and others when they act,
in good faith, in the best interests of the Fund. The Fund is unable to
develop an estimate for future payments resulting from hypothetical claims,
but expects the risk of having to make any payments under these
indemnifications to be remote.
Due to related parties at June 30, 2011 and December 31, 2010 consisted of
amounts due to the Corporate Managing Member, Ashley Capital Management, Inc.,
FIC, and Michael Pacult, President of FIC, the Corporate Managing Member and
Ashley Capital Management, Inc. The balances result from offering,
organizational and operating costs paid by the related parties on behalf of
the Fund and cash advances. These amounts bear no interest or due dates and
are unsecured. On July 7, 2011 $193,206 of the due to related party balance
was repaid. The following balances were outstanding as of June 30, 2011 and
December 31, 2010:
June 30, December 31,
2011 2010
FIC $221,459 $194,108
Ashley Capital Management, Inc. 26,475 26,475
Corporate Managing Member 1,957 1,958
Michael Pacult 39,731 39,731
Balance due to related parties $289,622 $262,272
7. Concentrations
The Fund will maintain all of its initial subscription deposits with a
commercial financial institution. In the event of the financial institution's
insolvency, recovery of Fund deposits may be limited to account insurance or
other protection afforded deposits by the institution.
8. Derivative Financial Instruments and Fair Value of Financial Instruments
A derivative financial instrument is a financial agreement whose value is
linked to, or derived from, the performance of an underlying asset. The
underlying asset can be currencies, commodities, interest rates, stocks, or
any combination. Changes in the underlying asset indirectly affect the value
of the derivative. As the instruments are recognized at fair value, those
changes directly affect reported income.
All investment holdings are recorded in the statement of assets and
liabilities at their net asset value (fair value) at the reporting date.
Financial instruments (including derivatives) used for trading purposes are
recorded in the statement of assets and liabilities at fair value at the
reporting date. Realized and unrealized changes in fair values are recognized
in net investment gain (loss) in the period in which the changes occur.
Interest income arising from trading instruments is included in the statement
of operations as part of interest income.
Notional amounts are equivalent to the aggregate face value of the
derivative financial instruments. Notional amounts do not represent the
amounts exchanged by the parties to derivatives and do not measure the Fund's
exposure to credit or market risks. The amounts exchanged are based on the
notional amounts and other terms of the derivatives.
9. Financial Instruments with Off-Balance Sheet Credit and Market Risk
All financial instruments are subject to market risk, the risk that future
changes in market conditions may make an instrument less valuable or more
onerous. As the instruments are recognized at fair value, those changes
directly affect reported income.
Included in the definition of financial instruments are securities,
restricted securities and derivative financial instruments. Theoretically,
the investments owned by the Fund directly are exposed to a market risk (loss)
equal to the notional value of the financial instruments purchased and
substantial liability on certain financial instruments purchased short.
Generally, financial instruments can be closed. However, if the market is not
liquid, it could prevent the timely close-out of any unfavorable positions or
require the Fund to hold those positions to maturity, regardless of the
changes in their value or the trading advisor's investment strategies.
Credit risk represents the accounting loss that would be recognized at the
reporting date if counterparties failed to perform as contracted.
Concentrations of credit risk (whether on or off balance sheet) that arise
from financial instruments exist for groups of counterparties when they have
similar economic characteristics that would cause their ability to meet
contractual obligations to be similarly affected by changes in economic or
other conditions.
F-10
TriView Global Fund, LLC
(A Development Stage Enterprise)
Notes to the Financial Statements
June 30, 2011
(A Review)
10. Indemnifications
In the normal course of business, the Fund enters into contracts and
agreements that contain a variety of representations and warranties and which
provide general indemnifications. The Fund's maximum exposure under these
arrangements is unknown, as this would involve future claims that may be made
against the Fund that have not yet occurred. The Fund expects the risk of any
future obligation under these indemnifications to be remote.
11. Financial Highlights
Three Months Ended June 30, Six Months Ended June 30,
2011 2010 2011 2010
Performance per unit (1)
Net unit value, beginning of period $(136,619.77) $(105,007.00) $(129,153.02) $(98,218.00)
Expenses (7,956.57) (15,121.50) (15,423.32) (21,910.50)
Net (decrease) for the period (7,956.57) (15,121.50) (15,423.32) (21,910.50)
Net unit value, end of period $(144,576.34) $(120,128.50) $(144,576.34) $(120,128.50)
Net assets, end of period (000) $(289) $(240) $(289) $(240)
Total return (2) (5.82)% (14.40)% (11.94)% (22.31)%
Number of units outstanding at the end of
the period 2.00 2.00 2.00 2.00
Supplemental Data
Ratio to average net assets (3)
Net investment (loss) (23.30)% (57.60)% (23.88)% (44.62)%
Expenses (23.30)% (57.60)% (23.88)% (44.62)%
Total returns are calculated based on the change in value of a unit during
the period. An individual member's total returns and ratios may vary from the
above total returns and ratios based on the timing of additions and
redemptions.
(1) Expenses are calculated based on a single unit outstanding during the
period
(2) Not annualized
(3) Annualized
F-11
TriView Global Fund, LLC
Affirmation of the Commodity Pool Operator
For the Six Months Ended June 30, 2011 and 2010
*****************************************************************************
To the best of the knowledge and belief of the undersigned, the information
contained in this report is accurate and complete.
/s/ Michael Pacult
Michael Pacult
President, TriView Capital Management, Inc.
Managing Member
TriView Global Fund, LLC
F-12
