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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 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 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

(Registrant’s telephone number, including area code)

 

 

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, 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 (§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 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.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨    Smaller reporting company   x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ¨    No  x

 

 

 


Table of Contents

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

The following financial statements of Rogers International Raw Materials Fund, L.P. are included in Item 1:

 

    Page

Financial Statements

 

Statements of Financial Condition as of September 30, 2012 (Unaudited) and December  31, 2011 (Audited)

  3

Condensed Schedules of Investments as of September 30, 2012 (Unaudited) and December  31, 2011 (Audited)

  4-5

Statements of Operations for the Three and Nine Months Ended September 30, 2012 and September  30, 2011 (Unaudited)

  6

Statements of Changes in Partners’ Capital (Net Assets) for the Nine Months Ended September  30, 2012 and September 30, 2011 (Unaudited)

  7

Notes to Financial Statements (Unaudited)

  8-17

 

 

2


Table of Contents

Rogers International Raw Materials Fund, L.P.

Statements of Financial Condition as of September 30, 2012 (Unaudited) and December 31, 2011 (Audited)

 

ROGERS INTERNATIONAL RAW MATERIALS FUND, L.P.

STATEMENTS OF FINANCIAL CONDITION

 

     September 30, 2012      December 31, 2011  
ASSETS      

Equity in broker trading accounts:

     

Cash at brokers

   $ 5,776,823       $ 5,387,385   

Unrealized gain/(loss) on open futures contracts, net

     878,273         (860,221
  

 

 

    

 

 

 

Total equity in brokers trading accounts

     6,655,096         4,527,164   

U.S. Government securities, at fair value

     19,767,949         27,673,158   

Cash and cash equivalents

     2,106,875         2,899,515   

Receivable from MF Global (Note 4)

     2,479,838         1,825,854   
  

 

 

    

 

 

 

Total assets

   $ 31,009,758       $ 36,925,691   
  

 

 

    

 

 

 
LIABILITIES      

Brokerage commissions payable

   $ 4,356       $ 4,357   

Accrued management fees – General Partner

     24,506         31,147   

Administrative and other fees payable

     188,238         214,855   

Subscriptions received in advance

     52,000         —     

Withdrawals payable

     726,732         1,789,741   
  

 

 

    

 

 

 

Total liabilities

     995,831         2,040,100   

PARTNERS’ CAPITAL (NET ASSETS)

     

Partners’ capital (net assets)

     30,013,927         34,885,591   
  

 

 

    

 

 

 

Total liabilities and partners’ capital (net assets)

   $ 31,009,758       $ 36,925,691   
  

 

 

    

 

 

 

See accompanying notes to the financial statements.

 

 

3


Table of Contents

Rogers International Raw Materials Fund, L.P.

Condensed Schedule of Investments as of September 30, 2012 (Unaudited)

 

 

U.S. Government securities:

(total cost - $19,761,454)

   Fair Value      Percent of
Partners’
Capital
(Net Assets)
 

U.S. Treasury Bills due 10/18/2012 at 0.10%, principal amount $1,000,000

   $ 999,951         3.33

U.S. Treasury Bills due 10/18/2012 at 0.12%, principal amount $2,000,000

     1,999,882         6.66   

U.S. Treasury Bills due 10/25/2012 at 0.10%, principal amount $1,150,000

     1,149,923         3.83   

U.S. Treasury Bills due 11/01/2012 at 0.09%, principal amount $1,000,000

     999,920         3.33   

U.S. Treasury Bills due 11/08/2012 at 0.10%, principal amount $2,500,000

     2,499,741         8.33   

U.S. Treasury Bills due 11/15/2012 at 0.12%, principal amount $1,330,000

     1,329,919         4.43   

U.S. Treasury Bills due 12/06/2012 at 0.05%, principal amount $2,098,000

     2,097,830         6.99   

U.S. Treasury Bills due 12/27/2012 at 0.15%, principal amount $1,250,000

     1,249,550         4.16   

U.S. Treasury Bills due 01/10/2013 at 0.09%, principal amount $2,098,000

     2,097,473         6.99   

U.S. Treasury Bills due 02/07/2013 at 0.12%, principal amount $1,150,000

     1,149,515         3.83   

U.S. Treasury Bills due 02/14/2013 at 0.10%, principal amount $2,098,000

     2,097,182         6.99   

U.S. Treasury Bills due 03/07/2013 at 0.10%, principal amount $2,098,000

     2,097,088         6.99   
  

 

 

    

 

 

 
   $ 19,767,973         65.86
  

 

 

    

 

 

 

 

      Unrealized
Gain (Loss) on
Open Long
Futures
    Percent of
Partners’
Capital
 
     Contracts     (Net Assets)  

Futures contracts*:

    

U.S. Futures Positions

    

Agricultural

   $ 67,068        0.22

Metals

     278,290        0.93   

Energy

     (34,223     (0.11
  

 

 

   

 

 

 

Total U.S. Futures Positions

     311,135        1.04   
  

 

 

   

 

 

 

Foreign Futures Positions

    

Agricultural

     48,778        0.16   

Metals

     518,360        1.73   
  

 

 

   

 

 

 

Total Foreign Futures Positions

     567,138        1.89   
  

 

 

   

 

 

 

Total Futures Contracts

   $ 878,273        2.93
  

 

 

   

 

 

 

 

* 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.

 

 

4


Table of Contents

Rogers International Raw Materials Fund, L.P.

Condensed Schedule of Investments as of December 31, 2011 (Audited)

 

 

U.S. Government securities:

(total cost - $27,649,960)

   Fair Value      Percent of
Partners’
Capital
(Net Assets)
 

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 $2,000,000

     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 9/20/2012 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.

 

 

5


Table of Contents

Rogers International Raw Materials Fund, L.P.

Statements of Operations for the Three and Nine Months Ended September 30, 2012 and September 30, 2011 (Unaudited)

 

 

    

Three Months

Ended

   

Three Months

Ended

   

Nine Months

Ended

   

Nine Months

Ended

 
     September 30,
2012
    September 30,
2011
    September 30,
2012
    September 30,
2011
 

Net trading gains (losses):

        

Realized

   $ 2,835,256      $ (2,846,170   $ (62,180   $ 3,116,333   

Change in unrealized

     193,829        (2,478,752     1,738,495        (7,554,290

Commissions

     (13,646     (18,026     (50,348     (64,471
  

 

 

   

 

 

   

 

 

   

 

 

 
     3,015,439        (5,342,948     1,625,967        (4,502,428
  

 

 

   

 

 

   

 

 

   

 

 

 

Investment income:

        

Interest income

     5,094        16,484        22,493        54,048   

Other income

     —          420,046        —          536,778   

Gain from MF Global (Note 4)

     817,140        —          817,140        —     
  

 

 

   

 

 

   

 

 

   

 

 

 
     822,234        436,530        839,633        590,826   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Management fees – General Partner

     70,872        112,950        236,841        367,520   

Administrative fees and other expenses

     169,845        219,126        538,216        659,843   
  

 

 

   

 

 

   

 

 

   

 

 

 
     240,717        332,076        775,057        1,027,363   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gain (loss)

     581,517        104,454        64,576        (436,537
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 3,596,956      $ (5,238,494   $ 1,690,543      $ (4,938,965
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in NAV per GP and LP unit:

        

General Partner

   $ 21.07      $ (22.98   $ 9.67      $ (23.02

Limited Partners-Series A

   $ 21.07      $ (22.98   $ 9.67      $ (23.02

Limited Partners-Series B

   $ 20.72      $ (24.42   $ 9.47      $ (24.98

Net income (loss) per General and Limited Partners (based on weighted average number of units outstanding during the period):

        

General Partner

   $ 48,664      $ (92,703   $ 29,914      $ (92,871

Limited Partners-Series A

     3,430,079        (5,043,735     1,594,645        (4,720,875

Limited Partners-Series B

     118,213        (102,056     65,984        (125,219
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 3,596,956      $ (5,238,494   $ 1,690,543      $ (4,938,965
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to financial statements.

 

 

6


Table of Contents

Rogers International Raw Materials Fund, L.P.

Statements of Changes in Partners’ Capital (Net Assets) for the Nine Months Ended September 30, 2012 and September 30, 2011(Unaudited)

 

 

     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), December 31, 2011

     3,444      $ 584,022        198,238      $ 33,611,272        4,135      $ 690,297      $ 34,301,569      $ 34,885,591   

Contributions

     —          —          —          —          2,171        355,231        355,231        355,231   

Net income (loss)

     —          29,914        —          1,594,645        —          65,984        1,660,629        1,690,543   

Withdrawals

     (1,134     (200,000     (39,170     (6,697,578     (117     (19,860     (6,717,438     (6,917,438
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Partners’ capital (net assets), September 30, 2012

     2,310      $ 413,936        159,068      $ 28,508,339        6,188      $ 1,091,652      $ 29,599,991      $ 30,013,927   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Partners’ capital (net assets), December 31, 2010

     4,034      $ 770,838        255,561      $ 48,829,926        1,780      $ 339,077      $ 49,169,003      $ 49,939,841   

Contributions

     —          —          —          —          2,440        487,082        487,082        487,082   

Net income (loss)

     —          (92,871     —          (4,720,875     —          (125,219     (4,846,094     (4,938,965

Withdrawals

     —          —          (39,185     (7,747,209     (218     (38,530     (7,785,739     (7,785,739
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Partners’ capital (net assets), September 30, 2011

     4,034      $ 677,967        216,376      $ 36,361,842        4,002      $ 662,410      $ 37,024,252      $ 37,702,219   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Sept 30,      Sept 30,  
Per unit data    2012      2011  

Net asset value Series A

   $ 179.22       $ 168.05   

Net asset value Series B

   $ 176.39       $ 165.46   

Net asset value General Partner

   $ 179.22       $ 168.05   

See accompanying notes to financial statements.

 

 

7


Table of Contents

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

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 and forward 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 Partnership’s investment strategy is designed to replicate the Rogers International Commodity Index ® (the “Index”) and positions are rebalanced monthly to maintain the Index’s relative weightings. James B. Rogers designed the Index.

The Partnership commenced trading during November 2001 with assets raised from the offering of its original units of limited partnership interest, now referred to as “Series A” units, and offered Series A units through October 2005. The Partnership began offering Series B units in November 2010. Series A units and Series B units are identical with respect to their participation in the profits and losses of the Partnership; however, Series B units do not participate in any Partnership expenses or recoveries related to the bankruptcy of Refco Inc. and its affiliates. The Partnership’s General Partner and commodity pool operator is Beeland Management Company, L.L.C. (the “General Partner”).

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 contracts 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 closing prices on the last business day of each month. Net asset value is 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 represent amounts on deposit with a broker to facilitate payment of expenses and partner withdrawals.

Fair Value of Financial Instruments: Securities and derivative financial instruments are recorded at fair value.

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.

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. The Partnership’s estimate regarding the carrying value of its receivable from MF Global, Inc. (Note 4) is a significant estimate and due to the uncertainty of future events, this estimate could change in the near term.

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.

 

 

8


Table of Contents

Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 1. Significant Accounting Policies (Continued):

 

Ongoing Offering Expenses: Ongoing offering expenses are accrued on an ongoing basis and charged to expense as incurred.

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 Partnership’s 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 September 30, 2012.

Profit and Loss Allocation: Profits and losses of the Partnership are allocated by series based on the number of units held.

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 year, substantially all of the Partnership’s investments were highly liquid;

 

   

Substantially all of the Partnership’s investments are carried at fair value;

 

   

The Partnership had little or no debt during the year;

 

   

The Partnership’s financial statements include a statement of changes in partners’ capital (net assets).

Note 2. Fair Value Measurements:

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.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 2. Fair Value Measurements (Continued):

 

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 and cash equivalents 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 September 30, 2012 and December 31, 2011 using the fair value hierarchy:

 

     September 30, 2012      December 31, 2011  

Description

   Level 1      Level 1  

Equity in brokers trading account:

     

Unrealized gain (loss) on open futures contracts, net*

   $ 878,273       $ (860,221

U.S. Government securities*

     19,767,949         27,673,158   

Cash and cash equivalents

     

Money market funds

     2,015,122         2,409,216   
  

 

 

    

 

 

 

Total assets at fair value

   $ 22,661,344       $ 29,222,153   
  

 

 

    

 

 

 

 

* See condensed schedules of investments for further description.

The Fund assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Partnership’s accounting policy regarding the recognition of transfers between the levels of the fair value hierarchy. There were no transfers among Levels 1, 2 and 3 and there were no Level 2 or 3 assets or liabilities during the periods presented.

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.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 3. Derivative Transactions

Qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements are presented.

The Partnership’s 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 September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011, the Partnership’s derivative contracts had the following impact on the statements of financial condition and statements of operations:

 

     Asset Derivatives      Liability Derivatives     Net Derivatives  
     September 30, 2012      September 30, 2012     September 30, 2012  
     Fair Value      Fair Value     Fair Value*  

Agricultural

   $ 259,687       $ (143,841   $ 115,846   

Metals

     1,260,179         (463,529     796,650   

Energy

     54,535         (88,758     (34,223
  

 

 

    

 

 

   

 

 

 

Totals

   $ 1,574,401       $ (696,128   $ 878,273   
  

 

 

    

 

 

   

 

 

 

 

* The net fair value of all asset and liability derivative is included in equity in brokers trading accounts in the statements of financial condition.

 

     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
  

 

 

    

 

 

   

 

 

 

Totals

   $ 321,054       $ (1,181,275   $ (860,221
  

 

 

    

 

 

   

 

 

 

 

* The net fair value of all asset and liability derivative is included in equity in broker trading accounts in the statements of financial condition.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 3. Derivative Transactions (Continued):

 

Trading revenue for the three and nine months ended September 30, 2012 and 2011:

 

     Three months ended      Three months ended     Nine months ended     Nine months ended  

Type of Contract

   September 30, 2012      September 30, 2011     September 30, 2012     September 30, 2011  

Agricultural

   $ 768,069       $ (1,091,966   $ 694,694      $ (2,154,011

Metals

     1,513,704         (2,750,383     1,505,323        (2,543,415

Energy

     747,312         (1,482,573     (523,702     259,469   
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 3,029,085       $ (5,324,922   $ 1,676,315      $ (4,437,957
  

 

 

    

 

 

   

 

 

   

 

 

 
     Three months ended      Three months ended     Nine months ended     Nine months ended  
     September 30, 2012      September 30, 2011     September 30, 2012     September 30, 2011  

Line Item in Statements of Operations

         

Realized

   $ 2,835,256       $ (2,846,170   $ (62,180   $ 3,116,333   

Change in unrealized

     193,829         (2,478,752     1,738,495        (7,554,290
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 3,029,085       $ (5,324,922   $ 1,676,315      $ (4,437,957
  

 

 

    

 

 

   

 

 

   

 

 

 

Trading income is exclusive of brokerage commissions.

For the three and nine months ended September 30, 2012 and 2011, the monthly average number of contracts bought and sold was 670, 860, 905, and 1070, respectively.

Note 4. Receivable from MF Global:

On October 31, 2011, MF Global Holdings Ltd., the parent company of MF Global Inc., then the Partnership’s futures commission merchant, filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. The Securities and Exchange Commission and CFTC agreed that a bankruptcy led by the Securities Investor Protection Corporation (“SIPC”) of MF Global Inc. would be the safest and most prudent course of action to protect customer accounts and assets and SIPC initiated the liquidation of MF Global Inc. under the Securities Investor Protection Act. 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. The CFTC has stated that there is a shortfall in customer segregated accounts held by MF Global Inc., and the true extent of such shortfall remains unknown. 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 Company 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 in 2011 on the MF Global Claim, which was an estimate of the Partnership’s pro-rata share of the projected MF Global Inc. asset shortfall based upon information provided by the bankruptcy trustee as well as independent third party claims to purchase the MF Global claim. At December 31, 2011, the receivable from MF Global Inc. was $1,825,854 on the Statement of Financial Condition.

The amount of the receivable from MF Global, Inc. increased from December 31, 2011 to September 30, 2012 by $15,149 due to foreign currency conversions recorded in January 2012 and a write up of the receivable amount at September 30 of $817,140. The receivable decreased as the result of a distribution from the bankruptcy Trustee of $178,305 in September 2012. The net increase of $653,984 is included as gain from MF Global on the Statement of Operations as of September 30, 2012.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 4. Receivable from MF Global (Continued):

 

The remaining receivable from MF Global Inc. of $2,479,838, as of September 30, 2012 is estimated by management based upon additional information provided and independent third party bids. The Partnership is withholding approximately 5% of the proceeds of redemptions attributable to Partnership assets, for which a loss was not taken and that are encumbered in the MF Global liquidation subject to a claims recovery process to be administered by the liquidation Trustee, pending completion of the MF Global liquidation or the receipt by the Partnership of the full amount of its claims.

Subsequent to September 30, 2012, the Partnership received a distribution from the MF Global trustee of $116,820, and sold the remaining MF Global claim effective November 1, 2012 for $2,445,324.

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 by reason of 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) are 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 partner’s 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. (“PFG”), 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 Partnership’s clearing broker. A portion of the brokerage fee paid by the Partnership for clearing transactions is paid to PFG by the clearing broker.

Fund Dynamics, LLC, an affiliate of the General Partner through common management, acts as the Partnership’s 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:

 

    Three months ended     Three months ended     Nine months ended     Nine months ended  
    September 30, 2012     September 30, 2011     September 30, 2012     September 30, 2011  

Management fees – General Partner

  $ 70,872      $ 112,950      $ 236,841      $ 367,521   

Administrative fees – Fund Dynamics

    16,829        25,037        55,312        80,702   

Trailing servicing fees – Uhlmann

    45,206        72,319        150,206        235,472   

Selling Fees – Uhlmann

    5,746        960        7,250        8,718   

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

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.

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.

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 Partnership’s operations may have market and/or credit risk in excess of the amounts recorded in the statement of financial condition.

Market Risk - Market risks arise from changes in the market value of financial instruments. Theoretically, the Partnership’s 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 - Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of a contract. The Partnership’s 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 Risk - The 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 institution’s insolvency, recovery of the Partnership’s 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.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

Note 8. Financial Highlights:

Financial highlights for limited partners for the three and nine months ended September 30, 2012 and 2011 are as follows:

Per Unit Performance

 

     Series A     Series B     Series A     Series B  
     Three months ended     Three months ended     Three months ended     Three months ended  
     September 30, 2012     September 30, 2012     September 30, 2011     September 30, 2011  

Net asset value per unit at the beginning of the period

   $ 158.15      $ 155.67      $ 191.03      $ 189.88   

Income (loss) from operations:

        

Net trading gains (losses)

     17.65        16.77        (23.46     (23.03

Investment income:

     4.84        5.45        1.92        0.07   

Expenses:

     (1.42     (1.50     (1.44     (1.46
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gain (loss)

     3.44        (3.95     0.48        (1.39
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) per unit

     21.07        20.72        (22.98     (24.42
  

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value per unit at the end of the period

   $ 179.22      $ 176.39      $ 168.05      $ 165.46   
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Per Unit Performance

 

     Series A     Series B     Series A     Series B  
     Nine months ended     Nine months ended     Nine months ended     Nine months ended  
     September 30, 2012     September 30, 2012     September 30, 2011     September 30, 2011  

Net asset value per unit at the beginning of the period

        

Income (loss) from operations:

   $ 169.55      $ 166.92      $ 191.07      $ 190.44   

Net trading gains (losses)

     9.36        7.43        (21.25     (20.71

Investment income:

     4.54        6.30        2.46        0.23   

Expenses:

     (4.23     (4.26     (4.23     (4.50
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gain (loss)

     0.31        2.04        (1.77     (4.27
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) per unit

     9.67        9.47        (23.02     (24.98
  

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value per unit at the end of the period

   $ 179.22      $ 176.39      $ 168.05      $ 165.46   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

15


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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

 

     Series A     Series B     Series A     Series B  
     Three months ended     Three months ended     Three months ended     Three months ended  
     September 30, 2012     September 30, 2012     September 30, 2011     September 30, 2011  

Ratio of net investment gain (loss) to average partners’ capital (net assets)(1)

     7.32     9.40     1.03     (3.00 %) 

Ratio of expenses to average partners’ capital (net assets) (1)(2)

     (3.04 %)      (3.56 %)      3.07     3.15

Total return (3)

     13.32     13.31     (12.03 %)      (12.86 %) 

 

     Series A     Series B     Series A     Series B  
     Nine months ended     Nine months ended     Nine months ended     Nine months ended  
     September 30, 2012     September 30, 2012     September 30, 2011     September 30, 2011  

Ratio of net investment gain (loss) to average partners’ capital (net assets)(1)

     0.26     1.62     (1.19 %)      (2.92 %) 

Ratio of expenses to average partners’ capital (net assets) (1)(2)

     (3.62 %)      (3.36 %)      2.86     3.08

Total return (3)

     5.70     5.67     (12.05 %)      (13.12 %) 

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 partner’s capital account, which may vary from these ratios based on the timing of capital transactions (see Note 5).

 

(1) 

Annualized.

(2) 

The ratio of expenses to average partners’ capital (net asset) values does not include brokerage commissions.

(3) 

Not annualized.

 

 

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Rogers International Raw Materials Fund, L.P.

Notes to the Financial Statements (Unaudited)

 

 

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 September 30, 2012, the Partnership has received the full value of its allowed claims in the Refco Bankruptcy and has recovered approximately $4.8 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 $1,065,000 for the year ended December 31, 2011. No excess distributions have been made in 2012. Pursuant to Section 12.2 of the Partnership’s Agreement of Limited Partnership, the Partnership reimbursed the General Partner and James B. Rogers approximately $400,000 and $428,000, respectively, from excess recoveries for legal costs incurred by the General Partner and James B. Rogers defending against suits related to the Refco Bankruptcy in 2010 and 2009. There are no fees due under these arrangements as of September 30, 2012 and December 31, 2011, respectively.

The Partnership has reserved $30,000 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 September 30, 2012, $23,302 of these expenses is included in administrative and other fees payable on the statement of financial condition.

At September 30, 2012 and December 31, 2011, no excess Refco related recoveries were payable to redeemed limited partners.

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 Partnership’s 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. Interim Financial Statements:

The statements of financial condition, including the condensed schedule of investments, as of September 30, 2012, the statement of operations and changes in partners’ capital (net assets) for the nine months ended September 30, 2012 and 2011 and the accompanying notes to the financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP may be omitted pursuant to such rules and regulations. In the opinion of the General Partner, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of the financial position as of September 30, 2012, results of operations and changes in partner’s capital (net assets) for the three and nine months ended September 30, 2012 and 2011. The results of operation for three and nine months ended September 30, 2012 and 2011 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Partnership’s Form 10-K as filed with the SEC.

Note 12. Subsequent Events:

Subsequent to September 30, 2012, there were $82,474 of contributions and withdrawals totaled approximately $807,071.

 

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

The Partnership’s principal objective is to provide an alternative investment vehicle for investors with diversified investment portfolios. The Partnership’s trading is designed to replicate the positions which comprise the Rogers International Commodity Index. The Partnership invests and trades in a portfolio of commodity futures and exchange traded forward contracts. The Partnership invests and trades solely on the “long side” of the market. The General Partner (“Beeland Management”) manages all business of the Partnership.

CAPITAL RESOURCES

The Partnership will raise additional capital only through the sale of Units offered pursuant to a continuing offering and does not intend to raise any capital through borrowing. Due to the nature of the Partnership’s business, it will make no capital expenditures and will have no capital assets which 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 Partnership’s ability to initiate new positions or close existing ones or may prevent it from having orders executed. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Similar occurrences could prevent the Partnership from promptly liquidating unfavorable positions and subject the Partnership to substantial losses, which could exceed the margin initially committed to such trades. In addition, even if futures prices have not moved the daily limit, the Partnership may not be able to execute futures trades at favorable prices if little trading in such contracts is taking place.

Other than these limitations on liquidity, which are inherent in the Partnership’s trading operations, the Partnership’s assets are expected to be highly liquid.

RESULTS OF OPERATIONS

The Partnership’s 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 the 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 Partnership’s performance may be negative in years when the Index’s performance is positive due to fees charged.

The components of the Partnership’s 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 September 30, 2012 and December 31, 2011, the Partnership’s net assets were $30,013,927 and $34,885,591, respectively.

 

 

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Table of Contents
     Three months
ended

Sept 30, 2012
    Three months
ended

Sept 30, 2011
    Nine months
ended

Sept 30, 2012
    Nine months
ended

Sept 30, 2011
 

Net Revenues

        

Realized net trading gains

   $ 2,835,256      $ (2,846,170   $ (68,824   $ 3,116,333   

Unrealized trading gains (losses)

     193,829        (2,478,752     1,738,495        (7,554,290

Interest income

     5,094        16,484        22,493        54,048   

Commissions

     (13,646     (18,026     (43,704     (64,471

Other income

     817,140        420,046        817,140        536,778   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Revenues

     3,837,673        (4,906,418     2,465,600        (3,911,602
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

        

Management fees

     70,872        112,950        236,841        367,520   

Administrative fees and other expenses

     169,845        219,126        538,216        659,843   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     240,717        332,076        775,057        1,027,363   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 3,596,956      $ (5,238,494   $ 1,690,543      $ (4,938,965
  

 

 

   

 

 

   

 

 

   

 

 

 

The Partnership pays various fees and expenses on a continuing basis which include management fees, servicing fees, and brokerage commission and transaction fees.

Results of Operations

2012

The Partnership posted a gain of 3.16% in January. The performance for all of the Index’s sectors was positive. The metals, agriculture and energy sectors posted gains of 2.62%, .40% and .35%, respectively. The best performing commodities this month were tin, silver, rubber, orange juice and zinc. The highest grossing commodities were brent crude, aluminum, silver, copper and gold.

The Partnership posted a gain of 4.13% in February. The performance for all of the Index’s sectors was positive. The energy, agriculture and metals sectors posted gains of 3.65%, .56% and .22%, respectively. The best performing commodities this month were brent crude, soybean meal, canola, soybeans and light crude. The highest grossing commodities were light crude, brent crude, soybeans, RBOB gasoline and sugar.

The Partnership posted a loss of 2.84% in March. The performance for all of the Index’s sectors was negative. The agriculture, metals and energy sectors posted losses of -1.29%, -1.01% and -.26%, respectively. The best performing commodities this month were soybean meal, oats, canola, Euro rapeseed and soybeans. The highest grossing commodities were soybeans, brent crude, cotton, soybean meal and canola.

The Partnership posted a loss of -0.93% in April. The performance for all of the Index’s sectors was negative. The agriculture, energy, and metals sectors posted losses of -0.58%, -0.09%, and -0.02%, respectively. The best performing commodities last month were soybean meal, soybeans, azuki beans, lumber and lead. The highest grossing commodities were crude oil, soybeans, lead, soybean meal, and zinc.

The Partnership posted a loss of -11.76% in May. The performance for all of the Index’s sectors was negative. The agriculture, energy, and metals sectors posted losses of –2.94%, -6.45%, and -1.97%, respectively. The best performing commodities last month were lean hogs, milling wheat, live cattle, natural gas and KC wheat. The highest grossing commodities were live cattle, natural gas, lean hogs, milling wheat and milk.

 

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The Partnership posted a gain of 2.23% in June. The performance for the Index’s sectors was mixed. The agriculture sector posted a gain of 3.03%, while the energy and metals sectors posted losses of -0.51% and -0.01% respectively. The best performing commodities last month were oats, corn, soybean meal, wheat, and natural gas. The highest grossing commodities were corn, wheat, soybeans, natural gas, and copper.

The Partnership posted a gain of 5.49% in July. The performance for the Index’s sectors was mixed. The agriculture and energy sectors posted gains of 3.45% and 2.60% respectively, while the metals sector posted a loss of -0.23%. The best performing commodities last month were corn, soybean meal, KC wheat, wheat and soybeans. The highest grossing commodities were corn, brent crude, wheat, light crude, and soybeans.

The Partnership posted a gain of 4.45% in August. The performance for the Index’s sectors was all positive. The agriculture, energy, and metals sectors posted gains of 0.34%, 3.70%, and 0.67%, respectively. The best performing commodities last month were RBOB gasoline, silver, heating oil, gas oil, and brent crude. The highest grossing commodities were light crude, brent crude, RBOB gasoline, cotton, and silver.

The Partnership posted a gain of 2.85% in September. The performance for the Index’s sectors was mixed. The agriculture and energy sectors posted losses of 0.97% and .82% respectively and the metals sector posted a gain of 2.12%. The best performing commodities last month were rubber, lead, nickel, zinc and natural gas. The highest grossing commodities were aluminum, natural gas, lead, copper and zinc.

2011

The Partnership posted a net gain of 2.93% in January. Performance of the index’s sectors was mixed. The agriculture and energy sectors posted gains of 1.97% and 1.22%, respectively, while the metals sector posted a loss of -0.04%. The best performing commodities this month were cotton, rubber, tin, lean hogs, and greasy wool. The highest grossing commodities were brent crude, cotton, wheat, corn, and rubber.

The Partnership posted a gain of 3.65% in February. The performance for all of the Index’s sectors was positive. The energy, metals, and agriculture sectors posted gains of 2.37%, 0.96%, and 0.48%, respectively. The best performing commodities this month were silver, cotton, gas oil, brent crude, and coffee. The highest grossing commodities were brent crude, cotton, light crude, corn, and silver.

The Partnership posted a gain of 2.14% in March. The performance for the Index’s sectors was mixed. The energy sector posted a gain of 2.98%, while the agriculture and metals sectors posted losses of -0.62% and -0.03%, respectively. The best performing commodities this month were silver, greasy wool, light crude, natural gas, and RBOB gasoline. The highest grossing commodities were light crude, brent crude, silver, natural gas, and RBOB gasoline.

The Partnership posted a gain of 2.84% in April. The performance for the Index’s sectors was mixed. The energy and metals sectors posted gains of 2.95% and 0.86%, respectively, while the agriculture sectors posted a loss of -0.86%. The best performing commodities in April were silver, cocoa, coffee, RBOB gasoline, and gold. The highest grossing commodities were light crude, brent crude, silver, corn, and RBOB gasoline.

The Partnership posted a loss of -5.42% in May. The performance for the Index’s sectors was negative. The agriculture, metals, and energy sectors posted losses of -0.48%, -0.96%, and -3.70%, respectively. The best performing commodities in May were greasy wool, Euro rapeseed, milling wheat, oats, and orange juice. The highest grossing commodities were milling wheat, sugar, orange juice, oats, and cotton.

The Partnership posted a loss of -5.68% in June. For the month of June, the performance for the Index’s sectors was negative. The agriculture, metals, and energy sectors posted losses of -2.85%, -0.38%, and -2.48%, respectively. The best performing commodities in June were sugar, lead, greasy wool, live cattle, and orange juice. The highest grossing commodities were sugar, lead, live cattle, copper, and zinc.

 

 

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The Partnership posted a gain of 2.09% in July. The performance for all of the Index’s sectors was positive in July. The agriculture, energy, and metals sectors posted gains of 0.50%, 0.59%, and 1.13%, respectively. The best performing commodities were silver, sugar, palladium, tin, and wheat. The highest grossing commodities were brent crude, wheat, silver, sugar, and gold.

The Partnership posted a gain of 0.44% in August. In August, the performance for the Index’s sectors was mixed. The energy and metals sectors posted losses of -1.94% and -0.40%, respectively while the agriculture sector posted a gain of 2.12%. The best performing commodities were coffee, corn, gold, KC wheat, and wheat. The highest grossing commodities were corn, wheat, gold, coffee, and soybeans.

The Partnership posted a loss of -14.22% in September. In September, the performance for all of the Index’s sectors was negative. The agriculture, energy, and metals sectors posted losses of -5.02%, -4.76%, and -4.04%, respectively. The best performing commodities were lean hogs, live cattle, azuki beans, euro rapeseed, and greasy wool. The highest grossing commodities were lean hogs, live cattle, azuki beans, euro rapeseed, and greasy wool. The Partnership’s year to date return for the nine months ended September 30, 2011 was -12.07%.

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 exchange traded forward contracts and may therefore become a party to financial instruments with elements of off-balance sheet market and credit risk. In entering into these contracts, there exists a market risk that such contracts may be significantly influenced by conditions, such as interest rate volatility, resulting in such contracts being less valuable. If the markets should move against all of the open positions of the Partnership at the same time, the Partnership could experience substantial losses.

In addition to market risk, in entering into futures, exchange-traded forward, or over the counter contracts there is a credit risk that a counterparty will not be able to meet its obligations to the Partnership. The counterparty for futures contracts traded in the United States and on most foreign exchanges is the clearinghouse associated with such exchange. In general, clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members, like some foreign exchanges, it is normally backed by a consortium of banks or other financial institutions. In off-exchange transactions, traders must rely solely on the credit of their counterparties. Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may require collateral in the over-the-counter markets.

CRITICAL ACCOUNTING POLICIES – VALUATION OF THE PARTNERSHIP’S POSITIONS

The General Partner believes that the accounting policies that are most critical to the Partnership’s financial condition and results of operations relate to the valuation of the Partnership’s positions. The majority of the Partnership’s positions are exchange-traded futures contracts, which are valued daily at settlement prices published by the exchanges. Any spot or forward foreign currency contracts held by the Partnership are also valued at published daily settlement prices or at dealers’ quotes. Thus, the General Partner expects that under normal circumstances substantially all of the Partnership’s assets will be valued on a daily basis using objective measures.

OFF-BALANCE SHEET ARRANGEMENTS

The Partnership does not engage in off-balance sheet arrangements with other entities.

 

 

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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 Partnership’s sole business is trading futures, exchange-traded commodity forward, and, possibly, commodity related over the counter contracts. All such contracts are settled by offset, not delivery. The unrealized gain and unrealized loss on the Partnership’s open futures contracts at September 30, 2012 (unaudited) and December 31, 2011.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

 

ITEM 4. CONTROLS AND PROCEDURES

The principal executive officer and principal financial officer of Beeland Management have evaluated the effectiveness of Beeland Management’s disclosure controls and procedures with respect to the Partnership as of the end of the fiscal quarter for which this Quarterly Report on Form 10-Q is being filed and have concluded that Beeland Management has effective disclosure controls and procedures to ensure that material information relating to the Partnership is made known to them by others within Beeland Management, particularly during the period in which this quarterly report is being prepared. There have been no significant changes in Beeland Management’s internal controls over financial reporting with respect to the Partnership that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, Beeland Management’s internal controls over financial reporting with respect to the Partnership.

 

 

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PART II-OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

None.

 

ITEM 1A. RISK FACTORS

Not required.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(c) Pursuant to the Partnership’s Limited Partnership Agreement, investors may redeem their 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 units that remain outstanding, and units are not reissued once redeemed.

The following tables summarize the redemptions by investors during the three months ended September 30, 2012:

Series A

Month:

   Units Redeemed:     NAV per Unit ($):  

July 31, 2012

     (2,690.88   $ 166.83   

August 31, 2012

     (1,735.96   $ 174.25   

September 30, 2012

     (1,291.34   $ 179.22   

Series B

Month:

   Units Redeemed:     NAV per Unit ($):  

July 31, 2012

     (45.93   $ 164.20   

August 31, 2012

     —        $ 171.50   

September 30, 2012

     —        $ 176.39   

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

 

ITEM 4. (Removed and Reserved)

 

ITEM 5. OTHER INFORMATION

None

 

ITEM 6. EXHIBITS

 

31.01    Rule 13a-14(a)/15d-14(a) Certification
31.02    Rule 13a-14(a)/15d-14(a) Certification
32.01    Section 1350 Certification
32.02    Section 1350 Certification
101    The following financial information from our Quarterly Report on Form 10-Q for the third quarter of 2012, filed with the SEC on November 13, 2012, formatted in Extensible Business Reporting Language (XBRL): (i) the Unaudited Statements of Financial Condition as of September 30, 2012 and December 31, 2011, (ii) the Unaudited Condensed Schedules of Investments as of September 30, 2012 and December 31, 2011, (iii) the Unaudited Statements of Operations for the Three and Nine Months Ended September 30, 2012 and September 30, 2011, (iv) the Unaudited Statements of Changes in Partners’ Capital (Net Assets) for the Nine Months Ended September 30, 2012 and September 30, 2011 and (v) Notes to Unaudited Financial Statements.

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on November 13, 2012.

 

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
  (Principal Executive Officer)
By:  

/s/ Allen D. Goodman

  Allen D. Goodman
  Managing Member
  (Principal Financial and Accounting Officer)

 

 

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