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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

[X] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the year ended December 31, 2001 or

[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from ________________to___________________
Commission File Number 0-12431

COLUMBIA FUTURES FUND

(Exact name of registrant as specified in its Limited Partnership Agreement)

NEW YORK 13-3103617
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

Demeter Management Corporation
c/o Managed Futures Department,
825 Third Avenue, 8th Floor,
New York, NY 10022
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (201) 876-4647

Securities registered pursuant to Section 12(b) of the Act:

Name of each exchange
Title of each class on which registered

None None

Securities registered pursuant to Section 12(g) of the Act:

Units of Limited Partnership Interest

(Title of Class)
Indicate by check-mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No _____

Indicate by check-mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (section 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment of this Form 10-K. [X]

State the aggregate market value of the Units of Limited Partnership Interest
held by non-affiliates of the registrant. The aggregate market value shall be
computed by reference to the price at which units were sold as of a specified
date within 60 days prior to the date of filing: $8,368,875 at January 31,
2002.

DOCUMENTS INCORPORATED BY REFERENCE
(See Page 1)






COLUMBIA FUTURES FUND
INDEX TO ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 2001
Page No.


DOCUMENTS INCORPORATED BY REFERENCE. . . . . . . . . . . . . . . . . 1

Part I .

Item 1. Business. . . . . . . . . . . . . . . . . . . . . . . . 2-3

Item 2. Properties. . . . . . . . . . . . . . . . . . . . . . . . 4

Item 3. Legal Proceedings. . . . . . . . . . . . . . . . . . . . 4

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

Part II.

Item 5. Market for the Registrant's Partnership Units
and Related Security Holder Matters . . . . . . . . . . . 5

Item 6. Selected Financial Data . . . . . . . . . . . . . . . . . 6

Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . .7-19

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk . . . . . . . . . . . . . . . . . . . . . .20-34

Item 8. Financial Statements and Supplementary Data. . . . . . . .34

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure. . . . . . . . . .. . 35
Part III.

Item 10. Directors and Executive Officers of the Registrant. . 36-40

Item 11. Executive Compensation . . . . . . . . . . . . . . . . . .41

Item 12. Security Ownership of Certain Beneficial Owners
and Management . . . . . . . . . . . . . . . . . . . . . .41

Item 13. Certain Relationships and Related Transactions . . . . 41-42

Part IV.

Item 14. Exhibits, Financial Statement Schedules, and
Reports on Form 8-K . . . . . . . . . . . . . . . . . .43-44







DOCUMENTS INCORPORATED BY REFERENCE


Portions of the following documents are incorporated by reference
as follows:



Documents Incorporated Part of Form 10-K

Partnership's Prospectus dated
July 15, 1983 I

Annual Report to Columbia Futures
Fund Limited Partners for the year
ended December 31, 2001 II, III & IV





























PART I
Item 1. BUSINESS
(a) General Development of Business. Columbia Futures Fund (the
"Partnership") is a New York limited partnership organized to
engage primarily in the speculative trading of futures contracts
and forward contracts in foreign currencies, financial
instruments, and other commodity interests. The Partnership
commenced operations on July 15, 1983.

The general partner for the Partnership is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker is
Morgan Stanley DW Inc. ("Morgan Stanley DW"). The clearing
commodity brokers are Morgan Stanley & Co., Inc. ("MS & Co.") and
Morgan Stanley & Co. International Limited ("MSIL"). Demeter,
Morgan Stanley DW, MS & Co. and MSIL are wholly-owned subsidiaries
of Morgan Stanley Dean Witter & Co. ("MSDW"). The sole trading
advisor to the Partnership is John W. Henry & Company, Inc. (or
the "Trading Advisor").

Effective April 2, 2001, Dean Witter Reynolds Inc. changed its
name to Morgan Stanley DW Inc.

The Partnership's net asset value per unit of limited partnership
interest ("Unit(s)") as of December 31, 2001 was $3,506.92,


representing an increase of 10.9 percent from the net asset value
per Unit of $3,163.59 at December 31, 2000. For a more detailed
description of the Partnership's business, see subparagraph (c).

(b) Financial Information about Segments. For financial
information reporting purposes, the Partnership is deemed to
engage in one industry segment, the speculative trading of futures
and forwards. The relevant financial information is presented in
Items 6 and 8.

(c) Narrative Description of Business. The Partnership is in the
business of speculative trading of futures and forwards, pursuant
to trading instructions provided by the Trading Advisor.

(d) Financial Information about Geographic Areas.

The Partnership has not engaged in any operations in foreign
countries; however, the Partnership (through the commodity
brokers) enters into forward contract transactions where foreign
banks are the contracting party and trades in futures and forwards
on foreign exchanges.






Item 2. PROPERTIES
The executive and administrative offices are located within the
offices of Morgan Stanley DW. The Morgan Stanley DW offices
utilized by the Partnership are located at 825 Third Avenue, 8th
Floor, New York, NY 10022.

Demeter changed its address from 2 World Trade Center, New York,
NY 10048.

Item 3. LEGAL PROCEEDINGS
In April 2001, the Appellate Division of New York State dismissed
the class action previously disclosed in the Partnership's Form
10-K for the year ended December 31, 2000. Because plaintiffs did
not exercise their right to appeal any further, this dismissal
constituted a final resolution of the case.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.














PART II

Item 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND RELATED
SECURITY HOLDER MATTERS


(a) Market Information
There is no established public trading market for Units of the
Partnership.

(b) Holders
The number of holders of Units at December 31, 2001 was
approximately 489.

(c) Distributions
No distributions have been made by the Partnership since it
commenced operations on July 15, 1983. Demeter has sole
discretion to decide what distributions, if any, shall be made to
investors in the Partnership. Demeter currently does not intend to
make any distribution of Partnership profits.













Item 6. SELECTED FINANCIAL DATA (in dollars)






For the Years Ended December 31,

2001 2000 1999 1998 1997 .


Total Revenues
(including interest) 1,527,530 1,479,080 71,795 2,028,466 2,827,745


Net Income (Loss) 890,802 706,618 (795,984) 1,102,908 1,782,050


Net Income (Loss)
Per Unit (Limited
& General Partners) 343.33 263.46 (270.86) 340.08 521.85


Total Assets 9,193,072 8,605,694 8,496,409 10,248,682 9,737,821


Total Limited Partners'
Capital 8,631,102 8,187,878 8,065,143 9,827,470 9,177,928


Net Asset Value Per
Unit 3,506.92 3,163.59 2,900.13 3,170.99 2,830.91





















Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Liquidity - The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker and MS & Co. and MSIL as
clearing brokers in separate futures and forwards trading accounts
established for the Trading Advisor, which assets are used as
margin to engage in trading. The assets are held in either non-
interest bearing bank accounts or in securities and instruments
permitted by the Commodity Futures Trading Commission for
investment of customer segregated or secured funds. The
Partnership's assets held by the commodity brokers may be used as
margin solely for the Partnership's trading. Since the
Partnership's sole purpose is to trade in futures and forwards, it
is expected that the Partnership will continue to own such liquid
assets for margin purposes.

The Partnership's investment in futures and forwards may, from
time to time, be illiquid. Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as "daily price fluctuations limits" or "daily limits". Trades
may not be executed at prices beyond the daily limit. If the
price for a particular futures contract has increased or decreased


by an amount equal to the daily limit, positions in that futures
contract can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit. Futures prices
have occasionally moved the daily limit for several consecutive
days with little or no trading. These market conditions could
prevent the Partnership from promptly liquidating its futures
contracts and result in restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions.

The Partnership has never had illiquidity affect a material
portion of its assets.

Capital Resources. The Partnership does not have, nor expect to
have, any capital assets. Redemptions of Units in the future will


affect the amount of funds available for investment in futures and
forwards in subsequent periods. It is not possible to estimate
the amount and therefore the impact of future redemptions of
Units.

Results of Operations.
General. The Partnership's results depend on the Trading Advisor
and the ability of the Trading Advisor's trading programs to take
advantage of price movements or other profit opportunities in the
futures and forwards markets. The following presents a summary of
the Partnership's operations for the three years ended December
31, 2001 and a general discussion of its trading activities during
each period. It is important to note, however, that the Trading
Advisor trades in various markets at different times and that
prior activity in a particular market does not mean that such
market will be actively traded by the Trading Advisor or will be
profitable in the future. Consequently, the results of operations
of the Partnership are difficult to discuss other than in the
context of the Trading Advisor's trading activities on behalf of
the Partnership and how the Partnership has performed in the past.

At December 31, 2001, the Partnership's total capital was
$8,981,794, an increase of $477,557 from the Partnership's total

capital of $8,504,237 at December 31, 2000. For the year ended
December 31, 2001, the Partnership generated net income of
$890,802 and total redemptions aggregated $413,245.

For the year ended December 31, 2001, the Partnership recorded
total trading revenues, including interest income, of $1,527,530
and posted an increase in net asset value per Unit. The most
significant gains of approximately 20.7% were recorded in the
currency markets primarily from short positions in the South
African rand as its value fell to an all-time low versus the
U.S. dollar during the fourth quarter amid emerging market
concerns and political turmoil in neighboring Zimbabwe.
Additional currency gains were recorded from short positions in
the Japanese yen as the value of the yen trended lower versus
the U.S. dollar during a majority of the fourth quarter due to
concerns regarding the overall health of the Japanese economy.
In the global stock index futures markets, gains of
approximately 2.5% were recorded primarily from short positions
in NASDAQ, DAX and Nikkei Index futures as equity prices trended
sharply lower throughout a majority of the third quarter amid
worries regarding global economic uncertainty. Additional
profits of approximately 1.7% were recorded in the global
interest rate futures markets primarily throughout a majority of

the third quarter from long positions in short-term U.S.
interest rate futures as prices continued trending higher amid
continued concerns for the sluggish U.S. economy, interest rate
cuts by the U.S. Federal Reserve and as investors sought a safe-
haven from declining stock prices. These gains were partially
offset by losses of approximately 8.2% recorded throughout the
first nine months of the year from positions in crude oil
futures and its related products as a result of volatility in
oil prices due to a continually changing outlook for supply,
production and demand. Smaller losses of approximately 1.1%
were recorded in each of soft commodities, metals and
agricultural sectors. Total expenses for the year were
$636,728, resulting in net income of $890,802. The net asset
value of a Unit increased from $3,163.59 at December 31, 2000 to
$3,506.92 at December 31, 2001.

At December 31, 2000, the Partnership's total capital was
$8,504,237, an increase of $149,081 from the Partnership's total
capital of $8,355,156 at December 31, 1999. For the year ended
December 31, 2000, the Partnership generated net income of
$706,618 and total redemptions aggregated $557,537.



For the year ended December 31, 2000, the Partnership recorded
total trading revenues, including interest income, of $1,479,080
and posted an increase in net asset value. Overall, three major
themes developed during the year; the rise in energy, the
decline and revival of the euro, and the bond rally caused by
expectations of the central banks easing in the face of an
economic slowdown. All were interrelated and display how
different trends will feed on each other to create continual or
rotating opportunities across sectors. Currencies were the
primary driver of performance, with gains of approximately 5.2%
in year to date performance, for the Partnership. Currencies
benefited from the strong trend in the euro, but the
deterioration of the yen during the last two months from the
economic problems in Japan was a key boost to this sector.
Additionally, the Partnership captured the current strengthening
of the euro because of its relatively higher growth versus the
U.S. global stock indices and benefited, with gains of approxi-
mately 4.7% in year to date performance, primarily from short
futures positions in the NASDAQ Index. Energy futures were
profitable, with profits of approximately 3.1% recorded for the
year, as the price rise in crude oil was due to a shortage of
production to meet the unexpected high demand around the world.


The demand side of the equation has been the main driver of
price. Metals, interest rates and agricultural commodity
futures ended the year unprofitable. Total expenses for the year
were $772,462, resulting in net income of $706,618. The net asset
value of a Unit increased from $2,900.13 at December 31, 1999 to
$3,163.59 at December 31, 2000.

At December 31, 1999, the Partnership's total capital was
$8,355,156, a decrease of $1,789,413 from the Partnership's total
capital of $10,144,569 at December 31, 1998. For the year ended
December 31, 1999, the Partnership generated a net loss of
$795,984 and total redemptions aggregated $993,429.

For the year ended December 31, 1999, the Partnership recorded
total trading revenues, including interest income, of $71,795 and,
after expenses, posted a decrease in net asset value per Unit. The
most significant losses of approximately 6.32% were recorded from
global interest rate futures trading as the volatile and choppy
price movement experienced during the year limited the ability to
capitalize on trends. Most global bond markets dropped during the
fourth quarter on a resurgence of inflation and interest rate
fears initiated by consistently strong U.S. economic data,


evidence of rising inflation in Germany and an increase in oil
prices. In the commodities markets, rapid trend reversals in a
number of markets, such as silver, gold and coffee, created losses
of approximately 3.27%, 1.67% and 1.13%, respectively, for the
Partnership. A portion of the Partnership's overall losses were
offset by gains of approximately 5.73% recorded in the energy
markets from long crude oil futures positions as oil prices
climbed higher throughout a majority of the year. Additional
gains of approximately 1.91% were recorded in the currency markets
due primarily to the upward momentum in the U.S. dollar relative
to the euro and Swiss franc, as well as the continued
strengthening of the Japanese yen versus other major currencies
during November. Total expenses for the year were $867,779,
resulting in a net loss of $795,984. The net asset value of a
Unit decreased from $3,170.99 at December 31, 1998 to $2,900.13 at
December 31, 1999.

The Partnership's overall performance record represents varied
results of trading in different futures and forwards markets. For
a further description of 2001 trading results, refer to the letter
to the Limited Partners in the accompanying Annual Report to
Limited Partners for the year ended December 31, 2001, which is
incorporated by reference to Exhibit 13.01 of this Form 10-K. The

Partnership's gains and losses are allocated among its partners
for income tax purposes.

Credit Risk.
Financial Instruments. The Partnership is a party to financial
instruments with elements of off-balance sheet market and credit
risk. The Partnership may trade futures and forwards in
financial instruments, agricultural commodities, energy
products, foreign currencies, precious and base metals, and soft
commodities. In entering into these contracts, the Partnership
is subject to the market risk that such contracts may be
significantly influenced by market conditions, such as interest
rate volatility, resulting in such contracts being less
valuable. If the markets moved against all of the positions
held by the Partnership at the same time, and if the Trading
Advisor were unable to offset positions of the Partnership, the
Partnership could lose all of its assets and investors would
realize a 100% loss.

In addition to the Trading Advisor's internal controls, the
Trading Advisor must comply with the trading policies of the



Partnership. These trading policies include standards for
liquidity and leverage with which the Partnership must comply.
The Trading Advisor and Demeter monitor the Partnership's trading
activities to ensure compliance with the trading policies.
Demeter may require the Trading Advisor to modify positions of the
Partnership if Demeter believes they violate the Partnership's
trading policies.

In addition to market risk, in entering into futures and forward
contracts there is a credit risk to the Partnership that the
counterparty on a contract will not be able to meet its
obligations to the Partnership. The ultimate counterparty or
guarantor of the Partnership for futures contracts traded in the
United States and the foreign exchanges on which the Partnership
trades is the clearinghouse associated with such exchange. In
general, a clearinghouse is backed by the membership of the
exchange and will act in the event of non-performance by one of
its members or one of its member's customers, which should
significantly reduce this credit risk. For example, a
clearinghouse may cover a default by drawing upon a defaulting
member's mandatory contributions and/or non-defaulting members'




contributions to a clearinghouse guarantee fund, established
lines or letters of credit with banks, and/or the
clearinghouse's surplus capital and other available assets of
the exchange and clearinghouse, or assessing its members. In
cases where the Partnership trades off-exchange forward
contracts with a counterparty, the sole recourse of the
Partnership will be the forward contracts counterparty.

There is no assurance that a clearinghouse, exchange, or
exchange member will meet its obligations to the Partnership,
and Demeter and the commodity brokers will not indemnify the
Partnership against a default by such parties. Further, the law
is unclear as to whether a commodity broker has any obligation
to protect its customers from loss in the event of an exchange
or clearinghouse defaulting on trades effected for the broker's
customers. Any such obligation on the part of a broker appears
even less clear where the default occurs in a non-U.S.
jurisdiction.

Demeter deals with these credit risks of the Partnership in
several ways. First, it monitors the Partnership's credit
exposure to each exchange on a daily basis, calculating not only


the amount of margin required for it but also the amount of its
unrealized gains at each exchange, if any. The commodity
brokers inform the Partnership, as with all their customers, of
its net margin requirements for all its existing open positions,
but do not break that net figure down, exchange by exchange.

Demeter, however, has installed a system which permits it to
monitor the Partnership's potential margin liability, exchange
by exchange. As a result, Demeter is able to monitor the
Partnership's potential net credit exposure to each exchange by
adding the unrealized trading gains on that exchange, if any, to
the Partnership's margin liability thereon.

Second, the Partnership's trading policies limit the amount of
its net assets that can be committed at any given time to
futures and forward contracts and require, in addition, a
minimum amount of diversification in the Partnership's trading,
usually over several different products. One of the aims of
such trading policies has been to reduce the credit exposure of
the Partnership to a single exchange and, historically, the
Partnership's exposure to any one exchange has typically
amounted to only a small percentage of its total net assets. On
those relatively few occasions where the Partnership's credit

exposure may climb above that level, Demeter deals with the
situation on a case by case basis, carefully weighing whether
the increased level of credit exposure remains appropriate.
Material changes to the trading policies may be made only with
the prior written approval of the Limited Partners owning more
than 50% of Units then outstanding.

Third, with respect to forward contract trading, the Partnership
trades with only those counterparties which Demeter, together
with Morgan Stanley DW, have determined to be creditworthy. The
Partnership presently deals with MS & Co. as the sole
counterparty on forward contracts.

Inflation has not been a major factor in the Partnership's
operations.

See "Financial Instruments" under Notes to Financial Statements
in the Partnership's Annual Report to Limited Partners for the
year ended December 31, 2001, which is incorporated by reference
to Exhibit 13.01 of this Form 10-K.




Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures and forwards. The market-sensitive
instruments held by the Partnership are acquired for speculative
trading purposes only and, as a result, all or substantially all
of the Partnership's assets are at risk of trading loss. Unlike
an operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.

The futures and forwards traded by the Partnership involve
varying degrees of related market risk. Market risk is often
dependent upon changes in the level or volatility of interest
rates, exchange rates, and prices of financial instruments and
commodities. Fluctuations in market risk based upon these
factors result in frequent changes in the fair value of the
Partnership's open positions, and, consequently, in its earnings
and cash flow.





The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.

The Partnership's past performance is not necessarily indicative
of its future results. Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that
far exceed the Partnership's experiences to date or any
reasonable expectations based upon historical changes in market
value.

Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the Partnership's
market risk exposures contain "forward-looking statements" within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). All


quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.

The Partnership accounts for open positions on the basis of using
mark-to-market accounting principles. Any loss in the market
value of the Partnership's open positions is directly reflected in
the Partnership's earnings, whether realized or unrealized, and
its cash flow. Profits and losses on open positions of exchange-
traded futures and forwards are settled daily through variation
margin.

The Partnership's risk exposure in the market sectors traded by
the Trading Advisor is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio. The Partnership estimates VaR using a model
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk. Market risks that are incorporated in the VaR
model include equity and commodity prices, interest rates, foreign


exchange rates, and correlation among these variables. The
hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the Partnership's
VaR is approximately four years. The one-day 99% confidence level
of the Partnership's VaR corresponds to the negative change in
portfolio value that, based on observed market risk factors, would
have been exceeded once in 100 trading days.

VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Advisor in their daily risk management
activities.

The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total net assets




by primary market risk category at December 31, 2001 and 2000.
At December 31, 2001 and 2000, the Partnership's total
capitalization was approximately $9 million.

Primary Market December 31, 2001 December 31, 2000
Risk Category Value at Risk Value at Risk

Currency (2.54)% (2.44)%

Interest Rate (0.71) (1.02)

Equity (0.47) (0.62)

Commodity (0.57) (0.75)

Aggregate Value at Risk (3.05)% (3.05)%


Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual market categories listed above. Aggregate VaR will
be lower as it takes into account correlation among different
positions and categories.

The table above represents the VaR of the Partnership's open
positions at December 31, 2001 and 2000 only and is not
necessarily representative of either the historic or future risk
of an investment in the Partnership. Because the Partnership's
only business is the speculative trading of futures and forwards,


the composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.

The table below supplements the December 31, 2001 VaR by
presenting the Partnership's high, low and average VaR, as a
percentage of total net assets for the four quarterly reporting
periods from January 1, 2001 through December 31, 2001.

Primary Market Risk Category High Low Average
Currency (2.77)% (2.54)% (2.66)%
Interest Rate (0.93) (0.71) (0.83)
Equity (0.56) (0.41) (0.47)
Commodity (0.73) (0.57) (0.64)
Aggregate Value at Risk (3.05)% (2.77)% (2.94)%

Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by the

Partnership to typically be many times the total capitalization of
the Partnership. The value of the Partnership's open positions
thus creates a "risk of ruin" not usually found in other
investments. The relative size of the positions held may cause
the Partnership to incur losses greatly in excess of VaR within a
short period of time, given the effects of the leverage employed
and market volatility. The VaR tables above, as well as the past
performance of the Partnership, give no indication of such "risk
of ruin". In addition, VaR risk measures should be viewed in light
of the methodology's limitations, which include the following:
? past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
? changes in portfolio value caused by market movements may
differ from those of the VaR model;
? VaR results reflect past trading positions while future risk
depends on future positions;
? VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and




? the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at December 31, 2001 and 2000, and for the end of
the four quarterly reporting periods during calendar year 2001.
Since VaR is based on historical data, VaR should not be viewed as
predictive of the Partnership's future financial performance or
its ability to manage or monitor risk. There can be no assurance
that the Partnership's actual losses on a particular day will not
exceed the VaR amounts indicated above or that such losses will
not occur more than once in 100 trading days.

Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. These balances and any market
risk they may represent are immaterial.

At December 31, 2001, the Partnership's cash balance at Morgan
Stanley DW was approximately 89% of its total net asset value. A
decline in short-term interest rates will result in a decline in

the Partnership's cash management income. This cash flow risk is
not considered to be material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments, in relation to the Partnership's net
assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures - constitute
forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act.
The Partnership's primary market risk exposures as well as the
strategies used and to be used by Demeter and the Trading Advisor
for managing such exposures are subject to numerous uncertainties,
contingencies and risks, any one of which could cause the actual
results of the Partnership's risk controls to differ materially
from the objectives of such strategies. Government interventions,

defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in
historical price relationships, an influx of new market
participants, increased regulation and many other factors could
result in material losses as well as in material changes to the
risk exposures and the risk management strategies of the
Partnership. Investors must be prepared to lose all or
substantially all of their investment in the Partnership.

The following were the primary trading risk exposures of the
Partnership at December 31, 2001, by market sector. It may be
anticipated, however, that these market exposures will vary
materially over time.

Currency. The primary market exposure of the Partnership at
December 31, 2001 was to the currency sector. The Partnership's
currency exposure was to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships
between different currencies and currency pairs. Interest rate
changes as well as political and general economic conditions
influence these fluctuations. The Partnership trades in a large
number of currencies. At December 31, 2001, the Partnership's
major exposures were to outright U.S. dollar positions.

Outright positions consist of the U.S. dollar vs. other
currencies. These other currencies include major and minor
currencies. Demeter does not anticipate that the risk profile
of the Partnership's currency sector will change significantly
in the future. The currency trading VaR figure includes foreign
margin amounts converted into U.S. dollars with an incremental
adjustment to reflect the exchange rate risk inherent to the
dollar-based Partnership in expressing VaR in a functional
currency other than dollars.

Interest Rate. The second largest market exposure at December
31, 2001 was to the global interest rate complex. Exposure was
primarily spread across the Japanese, U.S., and German interest
rate sectors. Interest rate movements directly affect the price
of the sovereign bond futures positions held by the Partnership
and indirectly affect the value of its stock index and currency
positions. Interest rate movements in one country as well as
relative interest rate movements between countries materially
impact the Partnership's profitability. The Partnership's
primary interest rate exposure is generally to interest rate
fluctuations in the United States and the other G-7 countries.
The G-7 countries consist of France, U.S., Britain, Germany,
Japan, Italy and Canada. However, the Partnership also takes

futures positions in the government debt of smaller nations -
e.g. Australia. Demeter anticipates that G-7 and Australian
interest rates will remain the primary interest rate exposure of
the Partnership for the foreseeable future. The speculative
futures positions held by the Partnership may range from short
to long-term instruments. Consequently, changes in short,
medium or long-term interest rates may have an effect on the
Partnership.

Equity. The Partnership's primary equity exposure at December
31, 2001 was to equity price risk in the G-7 countries. The
stock index futures traded by the Partnership are by law limited
to futures on broadly-based indices. At December 31, 2001, the
Partnership's primary exposures were to the NASDAQ (U.S.), DAX
(Germany) and Dow Jones Euro Stoxx 50 (Europe) stock indices.
The Partnership is primarily exposed to the risk of adverse
price trends or static markets in the G-7 indices. Static
markets would not cause major market changes but would make it
difficult for the Partnership to avoid being "whipsawed" into
numerous small losses.




Commodity.
Energy. At December 31, 2001, the Partnership's energy
exposure was shared primarily by futures contracts in the
crude and heating oil markets. Price movements in these
markets result from political developments in the Middle
East, weather patterns and other economic fundamentals. It
is possible that volatility will remain high. Significant
profits and losses, which have been experienced in the
past, are expected to continue to be experienced in these
markets.

Soft Commodities and Agriculturals. At December 31, 2001,
the Partnership had exposure in the markets that comprise
these sectors. Most of the exposure was to the sugar and
corn markets. Supply and demand inequalities, severe
weather disruption and market expectations affect price
movements in these markets.

Metals. The Partnership's metals exposure at December 31,
2001 was to fluctuations in the price of precious metals,
such as gold and silver, and base metals, such as copper.
Economic forces, supply and demand inequalities,
geopolitical factors and market expectations influence

price movement in these markets. The Trading Advisor has,
from time to time, taken positions when market
opportunities develop. Demeter anticipates that the
Partnership will continue to be exposed to the precious and
base metals markets.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership at December 31, 2001:

Foreign Currency Balances. The Partnership's primary
foreign currency balances at December 31, 2001 were in
Japanese yen and Canadian dollars. The Partnership
controls the non-trading risk of these balances by
regularly converting them back into U.S. dollars upon
liquidation of their respective positions.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisor, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership's assets among different market sectors and trading

approaches, and monitoring the performance of the Trading
Advisor daily. In addition, the Trading Advisor establishes
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.

Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisor.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Financial Statements are incorporated by reference to the
Partnership's Annual Report which is filed as Exhibit 13.01
hereto.











Supplementary data specified by Item 302 of Regulation S-K:

Summary of Quarterly Results (Unaudited)

Net Income/
(Loss) Per
Quarter Revenue Net Unit of Limited
Ended (Net Trading Loss) Income/(Loss) Partnership Interest

2001
March 31 $ 888,825 $ 740,313 $ 276.86
June 30 (847,844) (999,957) (377.06)
September 30 449,935 280,645 107.07
December 31 1,036,614 869,801 336.46

Total $ 1,527,530 $ 890,802 $ 343.33

2000
March 31 $ 111,738 $ (103,025) $ (37.65)
June 30 (164,709) (356,282) (129.24)
September 30 (178,632) (360,270) (131.15)
December 31 1,710,683 1,526,195 561.50

Total $ 1,479,080 $ 706,618 $ 263.46





Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNT-
ING AND FINANCIAL DISCLOSURE

None.











PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

There are no directors or executive officers of the Partnership.
The Partnership is managed by Demeter.


Directors and Officers of the General Partner
The directors and officers of Demeter are as follows:

Robert E. Murray, age 41, is the Executive Director of Morgan
Stanley DW's Managed Futures Department, a leading commodity
pool operator with approximately $1.4 billion in assets across a
variety of U.S. and international public and private managed
futures funds. In this capacity, Mr. Murray is responsible for
overseeing all aspects of Morgan Stanley DW's Managed Futures
Department. Mr. Murray began at Dean Witter in 1984 and has
been closely involved in the growth of managed futures at the
firm over the last 17 years. He is also the Chairman and
President of Morgan Stanley Futures & Currency Management Inc.
("MSFCM") (formerly known as Dean Witter Futures & Currency
Management Inc.), Morgan Stanley's internal commodity trading
advisor, and is Chairman and President of Demeter Management
Corporation, the entity which acts as a general partner for the


Morgan Stanley DW's managed futures funds. Mr. Murray has
served as the Vice Chairman and a Director of the Board of the
Managed Futures Association and is currently a member of the
Board of Directors of the National Futures Association. Mr.
Murray received a Bachelors Degree in Finance from Geneseo State
University in 1983.

Mitchell M. Merin, age 48, is a Director of Demeter. Mr. Merin
is also a Director of MSFCM. Mr. Merin was appointed the Chief
Operating Officer of Individual Asset Management for MSDW in
December 1998 and the President and Chief Executive Officer of
Morgan Stanley Dean Witter Advisors in February 1998. He has
been an Executive Vice President of Morgan Stanley DW since
1990, during which time he has been Director of Morgan Stanley
DW's Taxable Fixed Income and Futures divisions, Managing
Director in Corporate Finance and Corporate Treasurer. Mr.
Merin received his Bachelors degree from Trinity College in
Connecticut and his M.B.A. degree in Finance and Accounting from
the Kellogg Graduate School of Management of Northwestern
University in 1977.




Joseph G. Siniscalchi, age 56, is a Director of Demeter. Mr.
Siniscalchi joined Morgan Stanley DW in July 1984 as a First
Vice President, Director of General Accounting and served as a
Senior Vice President and Controller for Morgan Stanley DW's
Securities Division through 1997. He is currently Managing
Director, responsible for the Client Support Service Division of
Morgan Stanley DW. From February 1980 to July 1984, Mr.
Siniscalchi was Director of Internal Audit at Lehman Brothers
Kuhn Loeb, Inc.

Edward C. Oelsner, III, age 60, is a Director of Demeter. Mr.
Oelsner is currently an Executive Vice President and head of the
Product Development Group at Morgan Stanley Dean Witter
Advisors, an affiliate of Morgan Stanley DW. Mr. Oelsner joined
Morgan Stanley DW in 1981 as a Managing Director in Morgan
Stanley DW's Investment Banking Department specializing in
coverage of regulated industries and, subsequently, served as
head of the Morgan Stanley DW Retail Products Group. Prior to
joining Morgan Stanley DW, Mr. Oelsner held positions at The
First Boston Corporation as a member of the Research and
Investment Banking Departments from 1967 to 1981. Mr. Oelsner
received his M.B.A. in Finance from the Columbia University


Graduate School of Business in 1966 and an A.B. in Politics from
Princeton University in 1964.

Richard A. Beech, age 50, is a Director of Demeter. Mr. Beech
has been associated with the futures industry for over 24 years.
He has been at Morgan Stanley DW since August 1984 where he is
presently an Executive Director and head of Branch Futures. Mr.
Beech began his career at the Chicago Mercantile Exchange, where
he became the Chief Agricultural Economist doing market
analysis, marketing and compliance. Prior to joining Morgan
Stanley DW, Mr. Beech also had worked at two investment banking
firms in operations, research, managed futures and sales
management.

Raymond A. Harris, age 45, is currently Managing Director in
Asset Management Services. He previously served as CAO of
Morgan Stanley Dean Witter Asset Management. From July 1982 to
July 1994, Mr. Harris served in financial, administrative and
other assignments at Dean Witter Reynolds, Inc. and Dean Witter,
Discover & Co. From August 1994 to January 1999, he worked in
Discover Financial Services and the firm's Credit Service
business units. Mr. Harris has been with Morgan Stanley Dean
Witter & Co. and its affiliates since July 1982. He has a B.A.

degree from Boston College and an M.B.A. in finance from the
University of Chicago.

Anthony J. DeLuca, age 39, became a Director of Demeter on
September 14, 2000. Mr. DeLuca is also a Director of MSFCM.
Mr. DeLuca was appointed the Controller of Asset Management for
MSDW in June 1999. Prior to that, Mr. DeLuca was a partner at
the accounting firm of Ernst & Young LLP, where he had MSDW as a
major client. Mr. DeLuca had worked continuously at Ernst &
Young LLP ever since 1984, after he graduated from Pace
University with a B.B.A. degree in Accounting.

Raymond E. Koch, age 46, is Chief Financial Officer of Demeter.
Mr. Koch began his career at MSDW in 1988, has overseen the
Managed Futures Accounting function since 1992, and is currently
an Executive Director in Investment Management Controllers.
From November 1979 to June 1988, Mr. Koch held various positions
at Thomson McKinnon Securities, Inc. culminating as Manager,
Special Projects in the Capital Markets Division. From August
1977 to November 1979 he was an auditor, specializing in
financial services at Deloitte Haskins & Sells. Mr. Koch
received his B.B.A. in accounting from Iona College in 1977, an


M.B.A. in finance from Pace University in 1984 and is a
Certified Public Accountant.

All of the foregoing directors have indefinite terms.

Item 11. EXECUTIVE COMPENSATION
The Partnership has no directors and executive officers. As a
limited partnership, the business of the Partnership is managed by
Demeter, which is responsible for the administration of the
business affairs of the Partnership but receives no compensation
for such services.


Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

(a) Security Ownership of Certain Beneficial Owners - At December
31, 2001 there were no persons known to be beneficial owners of
more than 5 percent of the Units.

(b) Security Ownership of Management - At December 31, 2001,
Demeter owned 100 Units of General Partnership Interest
representing a 3.9 percent interest in the Partnership.

(c) Changes in Control - None

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Refer to Note 2 - "Related Party Transactions" of "Notes to
Financial Statements", in the accompanying Annual Report to
Limited Partners for the year ended December 31, 2001, which is
incorporated by reference to Exhibit 13.01 of this Form 10-K. In
its capacity as the Partnership's retail commodity broker, Morgan
Stanley DW received commodity brokerage commissions (paid and
accrued by the Partnership) of $364,044 and Demeter received
administration fees of $8,378 for the year ended December 31,
2001.

















PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORT ON
FORM 8-K

(a) 1. Listing of Financial Statements
The following financial statements and report of independent auditors,
all appearing in the accompanying Annual Report to Limited Partners for
the year ended December 31, 2001, are incorporated by reference to
Exhibit 13.01 of this Form 10-K:
- - Report of Deloitte & Touche LLP, independent auditors, for the
years ended December 31, 2001, 2000, and 1999.

- - Statements of Financial Condition as of December 31, 2001 and
2000.

- - Schedule of Investments as of December 31, 2001.

- - Statements of Operations, Changes in Partners' Capital, and Cash
Flows for the years ended December 31, 2001, 2000 and 1999.

- - Notes to Financial Statements.
With the exception of the aforementioned information and the information
incorporated in Items 7, 8, and 13, the Annual Report to Limited
Partners for the year ended December 31, 2001 is not deemed to be filed
with this report.

2. Listing of Financial Statement Schedules
No financial statement schedules are required to be filed with this
report.
(b) Reports on Form 8-K
During the quarter/year ended December 31, 2001, the following Forms 8-K
were filed by the Partnership:

On January 3, 2001, the Partnership filed the Current Report on Form 8-K
for the purpose of reporting, under Item 5, the amendment to the




Partnership's management agreement with the Trading Advisor under which
the monthly management fee rate and quarterly incentive fee rate paid by
the Partnership to the Trading Advisor were reduced and increased,
respectively.

On November 13, 2001, the Partnership filed the Current Report on Form
8-K for the purpose of reporting, under Item 5, the relocation of
offices of the Partnership and Demeter; the transfer of futures and
options clearing of the Partnership to MS & Co.; and the replacement by
MS & Co. as counterparty on all foreign currency forward contracts for
the Partnership.

(c) Exhibits
Refer to Exhibit Index on Pages E-1 to E-2.






























SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

COLUMBIA FUTURES FUND
(Registrant)

BY: Demeter Management Corporation,
General Partner

March 27, 2002 BY: /s/ Robert E. Murray
Robert E. Murray, Director,
Chairman of the Board and
President

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

Demeter Management Corporation.

BY: /s/ Robert E. Murray March 27, 2002
Robert E. Murray, Director,
Chairman of the Board and
President

/s/ Mitchell M. Merin March 27, 2002
Mitchell M. Merin, Director

/s/ Joseph G. Siniscalchi March 27, 2002
Joseph G. Siniscalchi, Director

/s/ Edward C. Oelsner III March 27, 2002
Edward C. Oelsner III, Director

/s/ Richard A. Beech March 27, 2002
Richard A. Beech, Director

/s/ Raymond A. Harris March 27, 2002
Raymond A. Harris, Director

/s/ Anthony J. DeLuca March 27, 2002
Anthony J. DeLuca, Director

/s/ Raymond E. Koch March 27, 2002
Raymond E. Koch, Chief
Financial Officer and Principal
Accounting Officer



EXHIBIT INDEX

Item

3.01 Amendment to Limited Partnership Agreement of Columbia
Futures Fund, dated as of February 14, 1985 is
incorporated by reference to Exhibit 3.01 of the
Partnership's Annual Report on Form 10-K for the fiscal
year ended December 31, 1985 (File No. 0-12431).

10.01 Advisory Agreement among the Partnership, Demeter and John
W. Henry & Company, Inc. dated as of January 20, 1987 is
incorporated by reference to Exhibit 10.03 of the
Partnership's Annual Report on Form 10-K for the fiscal
year ended December 31, 1986 (File No. 0-12431).

10.03 Amended and Restated Customer Agreement, dated as of
December 1, 1997, between the Partnership and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 10.03
of the Partnership's Quarterly Report on Form 10-Q/A for
the quarter ended March 31, 2000 (File No. 0-12431).

10.04 Amended and Restated Customer Agreement between the
Partnership and Morgan Stanley DW Inc., dated as of June
22, 2000, is incorporated by reference to Exhibit 10.01 of
the Partnership's Form 8-K (File No. 0-12431) filed with
the Securities and Exchange Commission on November 13,
2001.

10.05 Commodity Futures Customer Agreement between Morgan Stanley
& Co. Incorporated and the Partnership, and acknowledged
and agreed to by Morgan Stanley DW Inc., dated as of May 1,
2000, is incorporated by reference to Exhibit 10.02 of the
Partnership's Form 8-K (File No. 0-12431) filed with the
Securities and Exchange Commission on November 13, 2001.

10.06 Customer Agreement between the Partnership and Morgan
Stanley & Co. International Limited, dated as of May 1,
2000, is incorporated by reference to Exhibit 10.04 of the
Partnership's Form 8-K (File No. 0-12431) filed with the
Securities and Exchange Commission on November 13, 2001.

10.07 Foreign Exchange and Options Master Agreement between
Morgan Stanley & Co. Incorporated and the Partnership,
dated as of April 30, 2000, is incorporated by reference to
Exhibit 10.05 of the Partnership's Form 8-K (File No. 0-
12431) filed with the Securities and Exchange Commission on
November 13, 2001.



10.08 Amendment No. 3 to Advisory Agreement between the
Partnership and John W. Henry & Company, Inc., dated as of
November 30, 2000, is incorporated by reference to Exhibit
10.01 of the Partnership's Form 8-K (File No. 0-12431)
filed with the Securities and Exchange Commission on
January 3, 2001.

10.09 Securities Account Control Agreement among the Partnership,
Morgan Stanley & Co. Incorporated, and Morgan Stanley DW
Inc., dated as of May 1, 2000, is incorporated by reference
to Exhibit 10.03 of the Partnership's Form 8-K (File No. 0-
12431) filed with the Securities and Exchange Commission on
November 13, 2001.

13.01 Annual Report to Limited Partners for the year ended
December 31, 2001 is filed herewith.








Columbia
Futures
Fund

December 31, 2001
Annual Report

[LOGO] Morgan Stanley



Columbia Futures Fund

Historical Fund Performance

Presented below is the percentage change in Net Asset Value per Unit from the
start of each calendar year the Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for the
Fund. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.



Year Return
- ---- ------

1983 (5 1/2 months) -18.3%
1984 -23.0%
1985 6.0%
1986 -23.0%
1987 48.9%
1988 0.1%
1989 3.8%
1990 58.1%
1991 11.7%
1992 2.0%
1993 14.4%
1994 -5.7%
1995 28.2%
1996 19.1%
1997 22.6%
1998 12.0%
1999 -8.5%
2000 9.1%
2001 10.9%

Inception-to-Date Return: 257.8%
Annualized Return: 7.1%




Demeter Management Corporation
c/o Managed Futures Department,
825 Third Avenue, 8th Floor,
New York, NY 10022
Telephone (201) 876-4647

Columbia Futures Fund
Annual Report
2001

Dear Limited Partner:

This marks the ninteenth annual report for the Columbia Futures Fund (the
"Fund"). This is the seventeenth report filed by Demeter Management
Corporation, the Fund's General Partner since February 1985. The Fund began the
year trading at a Net Asset Value per Unit of $3,163.59 and increased by 10.9%
to $3,506.92 on December 31, 2001. Since its inception in 1983, the Fund has
increased by 257.8% (compound annualized return of 7.1%). Since Demeter took
over as General Partner, the Fund has increased by 451.6% (a compound
annualized return of 10.7%). A review of trading results for the year is
provided in the Annual Report of the Trading Manager located on the next page
of this report.

Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation, c/o Managed Futures Department, 825
Third Avenue, 8th Floor, New York 10022, or your Morgan Stanley Financial
Advisor.

I hereby affirm, that to the best of my knowledge and belief, the information
contained in this report is accurate and complete. Past performance is not a
guarantee of future results.

Sincerely,

/s/ Robert E. Murray
Robert E. Murray
Chairman
Demeter Management Corporation
General Partner



Columbia Futures Fund

Annual Report of the Trading Manager

On an overall basis, the Fund produced a gain in 2001, primarily due to the
profits generated in the foreign exchange markets. Interest rate and stock
index futures trading was profitable as well. However, losses were incurred for
the year in energies, agricultural commodities and metals.

The biggest profits were recorded from trading the South African rand, which
weakened through most of the second half of the year. This trend accelerated in
December, producing large profits for the Fund. The Japanese yen and Singapore
dollar were also profitable for the year. These gains were slightly offset by
transactions involving the British pound, Australian dollar and New Zealand
dollar.

Stock index futures trading was profitable for the year. Trading in the NASDAQ
and German Dax Index were particularly profitable. Interest rate trading also
was profitable, with the largest profits earned from trading eurodollar and
German bund futures.

Losses were incurred in trading energies, agricultural commodities and metals
in 2001. The volatility of crude oil and heating oil prices made the energy
markets particularly difficult to trade during the year. Only in the fourth
quarter were any profits be generated in the energy sector. The losses in sugar
and corn futures more than offset the profits made by the large drop in cotton
prices. Metals markets were mixed but slightly down, with gains earned in the
copper markets eliminated by losses in trading silver and gold futures.

We thank the Fund's investors for their continued confidence in JWH and we hope
that the coming year will bring markets favorable to the Fund's investors.

John W. Henry & Co., Inc.

Note: Investors are cautioned that past results are not necessarily indicative
of future results.



Columbia Futures Fund

Independent Auditors' Report

The Limited Partners and the General Partner:

We have audited the accompanying statements of financial condition of Columbia
Futures Fund (the "Partnership") as of December 31, 2001 and 2000, including
the schedule of investments as of December 31, 2001, and the related statements
of operations, changes in partners' capital, and cash flows for each of the
three years in the period ended December 31, 2001. These financial statements
are the responsibility of the Partnership's management. Our responsibility is
to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of Columbia Futures Fund at December 31, 2001
and 2000 and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2001 in conformity with accounting
principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

New York, New York
February 15, 2002



Columbia Futures Fund

Statements of Financial Condition



December 31,
--------------------
2001 2000
--------- ---------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 8,557,221 7,719,952

Net unrealized gain on open contracts
(MS&Co.) 636,416 852,352
Net unrealized gain (loss) on open contracts
(MSIL) (15,150) 750
--------- ---------
Total net unrealized gain on open
contracts 621,266 853,102
--------- ---------
Total Trading Equity 9,178,487 8,573,054
Interest receivable (Morgan Stanley DW) 10,429 32,640
Due from Morgan Stanley DW 4,156 --
--------- ---------
Total Assets 9,193,072 8,605,694
========= =========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Administrative expenses payable 108,464 65,078
Redemptions payable 87,673 22,145
Accrued management fees 15,141 14,234
--------- ---------
Total Liabilities 211,278 101,457
--------- ---------
PARTNERS' CAPITAL
Limited Partners (2,461.166 and 2,588.159 Units,
respectively) 8,631,102 8,187,878
General Partner (100 Units) 350,692 316,359
--------- ---------
Total Partners' Capital 8,981,794 8,504,237
--------- ---------
Total Liabilities and
Partners' Capital 9,193,072 8,605,694
--------- ---------

NET ASSET VALUE PER UNIT 3,506.92 3,163.59
========= =========



The accompanying notes are an integral part of these financial statements.



Columbia Futures Fund

Statements of Operations



For the Years Ended
December 31,
-----------------------------
2001 2000 1999
--------- --------- --------
$ $ $

REVENUES
Trading profit (loss):
Realized 1,526,249 582,252 (117,881)
Net change in unrealized (231,836) 518,814 (164,816)
--------- --------- --------
Total Trading Results 1,294,413 1,101,066 (282,697)
Interest income (Morgan Stanley DW) 233,117 378,014 354,492
--------- --------- --------
Total 1,527,530 1,479,080 71,795
--------- --------- --------
EXPENSES
Brokerage commissions (Morgan
Stanley DW) 364,044 368,419 385,530
Management fees 166,573 303,037 370,827
Administrative expenses 90,000 81,000 86,000
Transaction fees and costs 16,111 20,006 25,235
Incentive fee -- -- 187
--------- --------- --------
Total 636,728 772,462 867,779
--------- --------- --------
NET INCOME (LOSS) 890,802 706,618 (795,984)
========= ========= ========
Net Income (Loss) Allocation:
Limited Partners 856,469 680,272 (768,898)
General Partner 34,333 26,346 (27,086)
Net Income (Loss) per Unit:
Limited Partners 343.33 263.46 (270.86)
General Partner 343.33 263.46 (270.86)


Statements of Changes in Partners' Capital
For the Years Ended December 31, 2001, 2000 and 1999



Units of
Partnership Limited General
Interest Partners Partner Total
----------- --------- ------- ----------
$ $ $

Partners' Capital,
December 31, 1998 3,199.179 9,827,470 317,099 10,144,569
Net loss -- (768,898) (27,086) (795,984)
Redemptions (318.215) (993,429) -- (993,429)
--------- --------- ------- ----------
Partners' Capital,
December 31, 1999 2,880.964 8,065,143 290,013 8,355,156
Net income -- 680,272 26,346 706,618
Redemptions (192.805) (557,537) -- (557,537)
--------- --------- ------- ----------
Partners' Capital,
December 31, 2000 2,688.159 8,187,878 316,359 8,504,237
Net income -- 856,469 34,333 890,802
Redemptions (126.993) (413,245) -- (413,245)
--------- --------- ------- ----------
Partners' Capital,
December 31, 2001 2,561.166 8,631,102 350,692 8,981,794
========= ========= ======= ==========


The accompanying notes are an integral part of these financial statements.



Columbia Futures Fund

Statements of Cash Flows



For the Years Ended
December 31,
--------------------------------
2001 2000 1999
--------- --------- ----------
$ $ $

CASH FLOWS FROM
OPERATING ACTIVITIES
Net income (loss) 890,802 706,618 (795,984)
Noncash item included in net
income (loss):
Net change in unrealized 231,836 (518,814) 164,816
(Increase) decrease in operating
assets:
Interest receivable (Morgan
Stanley DW) 22,211 (2,302) (436)
Due from Morgan Stanley DW (4,156) -- --
Increase (decrease) in operating
liabilities:
Administrative expenses payable 43,386 3,469 7,219
Accrued management fees 907 (13,789) (5,845)
--------- --------- ----------
Net cash provided by (used
for) operating activities 1,184,986 175,182 (630,230)
--------- --------- ----------
CASH FLOWS FROM
FINANCING ACTIVITIES
Increase (decrease) in
redemptions payable 65,528 (29,476) 35,766
Redemptions of Units (413,245) (557,537) (993,429)
--------- --------- ----------
Net cash used for financing
activities (347,717) (587,013) (957,663)
--------- --------- ----------
Net increase (decrease) in cash 837,269 (411,831) (1,587,893)
Balance at beginning of period 7,719,952 8,131,783 9,719,676
--------- --------- ----------

Balance at end of period 8,557,221 7,719,952 8,131,783
========= ========= ==========



The accompanying notes are an integral part of these financial statements.



Columbia Futures Fund

Schedule of Investments
December 31, 2001

Partnership Net Assets: $8,981,794



Long Short Net Percentage of # of Contracts/
Futures and Forward Contracts: Gain/(Loss) Gain/(Loss) Unrealized Gain/(Loss) Net Assets Notional Amounts
- ------------------------------ ----------- ----------- ---------------------- ------------- ----------------
$ $ $ %

Foreign currency 14,671 587,596 602,267 6.71* 1,222,028,715
Commodity (18,055) (61,930) (79,985) (0.89) 180
Interest rate (20,994) 37,412 16,418 0.18 145
Equity 17,823 -- 17,823 0.20 21
------- ------- ------- -----
Grand Total: (6,555) 563,078 556,523 6.20
======= ======= =====
Unrealized Currency Gain 64,743
-------
Total Net Unrealized Gain per Statement of
Financial Condition 621,266
=======

*No single contract's value exceeds 5% of Net Assets.

The accompanying notes are an integral part of these financial statements.



Columbia Futures Fund

Notes to Financial Statements


1. Summary of Significant Accounting Policies

Organization--Columbia Futures Fund (the "Partnership") is a limited
partnership organized to engage primarily in the speculative trading of futures
contracts and forward contracts in foreign currencies, financial instruments
and other commodity interests (collectively, "futures interests").

The general partner is Demeter Management Corporation ("Demeter"). The
non-clearing commodity broker is Morgan Stanley DW Inc. ("Morgan Stanley DW").
The clearing commodity brokers are Morgan Stanley & Co., Inc. ("MS&Co.") and
Morgan Stanley & Co. International Limited ("MSIL"). Demeter, Morgan Stanley
DW, MS&Co. and MSIL are wholly-owned subsidiaries of Morgan Stanley Dean Witter
& Co.

Effective April 2, 2001, Dean Witter Reynolds Inc. changed its name to Morgan
Stanley DW Inc.

Demeter is required to maintain a 1% minimum interest in the equity of the
Partnership and income (losses) are shared by Demeter and the limited partners
based upon their proportional ownership interests.

Use of Estimates--The financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
require management to make estimates and assumptions that affect the reported
amounts in the financial statements and related disclosures. Management
believes that the estimates utilized in the preparation of the financial
statements are prudent and reasonable. Actual results could differ from those
estimates.

Revenue Recognition--Futures interests are open commitments until settlement
date. They are valued at market on a daily basis and the resulting net change
in unrealized gains and losses is reflected in the change in unrealized profit
(loss) on open contracts from one period to the next in the statements of
operations. Monthly, Morgan Stanley DW pays the Partnership interest income
based upon 80% of its average equity at a rate equal to the average yield on
13-week U.S. Treasury bills. For purposes of such interest payments, Net Assets
do not include monies due the Partnership on futures interests, but not
actually received.

Net Income (Loss) per Unit--Net income (loss) per unit of limited partnership
interest ("Unit(s)") is computed using the weighted average number of Units
outstanding during the period.

Condensed Schedule of Investments--In March 2001, the American Institute of
Certified Public Accountants' Accounting Standards Executive Committee issued
Statement of



Columbia Futures Fund

Notes to Financial Statements--(Continued)


Position ("SOP") 01-1, "Amendment to the Scope of Statement of Position 95-2,
Financial Reporting by Nonpublic Investment Partnerships, to Include Commodity
Pools" effective for fiscal years ending after December 15, 2001. Accordingly,
commodity pools are now required to include a condensed schedule of investments
identifying those investments which constitute more than 5% of net assets,
taking long and short positions into account separately.

Equity in Futures Interests Trading Accounts--The Partnership's asset "Equity
in futures interests trading accounts," reflected in the statements of
financial condition, consists of (A) cash on deposit with Morgan Stanley DW,
MS&Co. and MSIL to be used as margin for trading and (B) net unrealized gains
or losses on open contracts, which are valued at market and calculated as the
difference between original contract value and market value.

The Partnership, in the normal course of business, enters into various
contracts with MS&Co. and MSIL acting as its commodity brokers. Pursuant to
brokerage agreements with MS&Co. and MSIL, to the extent that such trading
results in unrealized gains or losses, the amounts are offset and reported on a
net basis on the Partnership's statements of financial condition.

The Partnership has offset the fair value amounts recognized for forward
contracts executed with the same counterparty as allowable under terms of the
master netting agreement with MS&Co., the sole counterparty on such contracts.
The Partnership has consistently applied its right to offset.

Brokerage Commissions and Related Transaction Fees and Costs--Brokerage
commissions are accrued at 80% of Morgan Stanley DW's published non-member
rates on a half-turn basis. Transaction fees and costs are accrued on a
half-turn basis. Total brokerage commissions and transaction fees combined are
capped at 13/20 of 1% per month (a maximum 7.8% annual rate) of the
Partnership's Net Assets as of the last day of each month.

Operating Expenses--The Partnership bears all operating expenses related to its
trading activities. These include filing fees, clerical, administrative,
auditing, accounting, mailing, printing, and other incidental operating
expenses as permitted by the Limited Partnership Agreement. In addition, the
Partnership incurs a monthly management fee and may incur an incentive fee.
Demeter bears all other operating expenses.

Income Taxes--No provision for income taxes has been made in the accompanying
financial statements, as partners are individually responsible for reporting
income or loss based upon their respective share of the Partnership's revenues
and expenses for income tax purposes.



Columbia Futures Fund

Notes to Financial Statements--(Continued)



Distributions--Distributions, other than redemptions of Units, are made on a
pro-rata basis at the sole discretion of Demeter. No distributions have been
made to date.

Redemptions--Limited Partners may redeem some or all of their Units at 100% of
the Net Asset Value per Unit as of the end of any calendar month upon ten days
advance notice by redemption form to Demeter.

Dissolution of the Partnership--The Partnership will terminate on December 31,
2002 regardless of its financial condition at such time, or at an earlier date
if certain conditions occur as defined in the Limited Partnership Agreement.

2. Related Party Transactions

The Partnership pays brokerage commissions to Morgan Stanley DW as described in
Note 1. The Partnership's cash is on deposit with Morgan Stanley DW, MS&Co.,
and MSIL in futures interests trading accounts to meet margin requirements as
needed. Morgan Stanley DW pays interest on these funds as described in Note 1.
For general administrative services performed for the Partnership, Demeter
receives a monthly administration fee which equals $1.50 per limited partner
outstanding. For the years ended December 31, 2001, 2000 and 1999, Demeter
received $8,378, $9,211 and $10,196, respectively, for such administrative
services.

3. Trading Advisor

Demeter, on behalf of the Partnership, retains a commodity trading advisor to
make all trading decisions for the Partnership. Since January 22, 1988, John W.
Henry & Company, Inc. ("JWH") has served as the sole trading advisor.

Compensation to the trading advisor consists of a management fee and an
incentive fee as follows:

Management Fee--The management fee is accrued daily at the rate of 1/6 of 1%
per month (a 2% annual rate) of the Partnership's managed Net Assets at each
month-end. Prior to December 1, 2000, the management fee was accrued daily at
the rate of 1/3 of 1% per month (a 4% annual rate) of the Partnership's
managed Net Assets at each month-end.

Incentive Fee--At the end of each quarter or upon redemption of a Partnership
Unit, an incentive fee is paid on each Unit equal to 20% of the excess ("New
Appreciation") of the Unit value, excluding interest earned during the period,
over the Unit value at the time immediately following the last incentive
payment. Such incentive fee is accrued in each month in which New Appreciation
occurs. In those months in which New Appreciation is negative, previous
accruals (on Units



Columbia Futures Fund

Notes to Financial Statements--(Continued)


currently outstanding), if any, during each fiscal quarter are reduced. Prior
to December 1, 2000, an incentive fee was paid on each Unit equal to 15% of the
excess.

4. Financial Instruments

The Partnership trades futures contracts and forward contracts on foreign
currencies, financial instruments and other commodity interests. Futures and
forwards represent contracts for delayed delivery of an instrument at a
specified date and price. Risk arises from changes in the value of these
contracts and the potential inability of counterparties to perform under the
terms of the contracts. There are numerous factors which may significantly
influence the market value of these contracts, including interest rate
volatility.

The Partnership accounts for its derivative investments in accordance with the
provisions of Statement of Financial Accounting Standard No. 133, "Accounting
for Derivative Instruments and Hedging Activities" ("SFAS No. 133"). SFAS No.
133 defines a derivative as a financial instrument or other contract that has
all three of the following characteristics:

1) One or more underlying notional amounts or payment provisions;
2) Requires no initial net investment or a smaller initial net investment than
would be required relative to changes in market factors;
3) Terms require or permit net settlement.

Generally derivatives include futures, forward, swaps or options contracts and
other financial instruments with similar characteristics such as caps, floors
and collars.

The net unrealized gains on open contracts at December 31, reported as a
component of "Equity in futures interests trading accounts" on the statements
of financial condition, and their longest contract maturities were as follows:



Net Unrealized Gains
on Open Contracts Longest Maturities
--------------------------- -------------------
Off- Off-
Exchange- Exchange- Exchange- Exchange-
Year Traded Traded Total Traded Traded
---- --------- --------- ------- --------- ---------
$ $ $ $ $

2001 18,999 602,267 621,266 Dec. 2002 Mar. 2002
2000 635,392 217,710 853,102 Dec. 2001 Mar. 2001


The Partnership has credit risk associated with counterparty nonperformance.
The credit risk associated with the instruments in which the Partnership is
involved is limited to the amounts reflected in the Partnership's statements of
financial condition.



Columbia Futures Fund

Notes to Financial Statements--(Concluded)



The Partnership also has credit risk because Morgan Stanley DW, MS&Co., and
MSIL act as the futures commission merchants or the counterparties with respect
to most of the Partnership's assets. Exchange-traded futures contracts are
marked to market on a daily basis, with variations in value settled on a daily
basis. Morgan Stanley DW, MS&Co. and MSIL, each as a futures commission
merchant for the Partnership's exchange-traded futures contracts, are required,
pursuant to regulations of the Commodity Futures Trading Commission to
segregate from their own assets, and for the sole benefit of their commodity
customers, all funds held by them with respect to exchange-traded futures
contracts, including an amount equal to the net unrealized gains on all open
futures contracts, which funds, in the aggregate, totaled $8,576,220 and
$8,355,344 at December 31, 2001 and 2000, respectively. With respect to the
Partnership's off-exchange-traded forward currency contracts, there are no
daily settlements of variations in value nor is there any requirement that an
amount equal to the net unrealized gains on open forward contracts be
segregated. With respect to those off-exchange-traded forward currency
contracts, the Partnership is at risk to the ability of MS&Co., the sole
counterparty on all of such contracts, to perform. The Partnership has a
netting agreement with MS&Co. This agreement, which seeks to reduce both the
Partnership's and MS&Co.'s exposure on off-exchange-traded forward currency
contracts, should materially decrease the Partnership's credit risk in the
event of MS&Co.'s bankruptcy or insolvency.

5. Financial Highlights



PER UNIT
---------

NET ASSET VALUE, JANUARY 1, 2001: $3,163.59
---------
NET OPERATING RESULTS:
Realized Profit 584.56
Unrealized Loss (88.01)
Interest Income 88.50
Expenses (241.72)
---------
Net Income 343.33
---------
NET ASSET VALUE, DECEMBER 31, 2001: $3,506.92
=========
Expense Ratio 7.7%
Net Income Ratio 10.8%
TOTAL RETURN 10.9%


6. Legal Matters

In April 2001, the Appellate Division of New York State dismissed the class
action previously disclosed in the Partnership's Annual Report for the year
ended December 31, 2000. Because plaintiffs did not exercise their right to
appeal any further, this dismissal constituted a final resolution of the case.



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