COLUMBIA FUTURES FUND - 10-K Annual Report

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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, 2002 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
825 Third Avenue, 9th Floor
New York, NY 10022
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (212) 310-6444

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: $0.00 at January 31, 2003.

DOCUMENTS INCORPORATED BY REFERENCE
(See Page 1)

COLUMBIA FUTURES FUND
INDEX TO ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 2002

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, 2002 II, III & IV

PART I
Item 1. BUSINESS
(a) General Development of Business. Columbia Futures Fund (the
"Partnership") was terminated on December 31, 2002 in accordance
with the Limited Partnership Agreement. The Partnership was
organized in New York as a limited partnership 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 Partnership's general partner was Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker was
Morgan Stanley DW Inc. ("Morgan Stanley DW"). The clearing
commodity brokers were Morgan Stanley & Co. Incorporated ("MS &
Co.") and Morgan Stanley & Co. International Limited ("MSIL").
Demeter, Morgan Stanley DW, MS & Co. and MSIL are wholly-owned
subsidiaries of Morgan Stanley. The sole trading advisor to the
Partnership was John W. Henry & Company, Inc. (or the "Trading
Advisor").

Effective June 20, 2002, Morgan Stanley Dean Witter & Co. changed
its name to Morgan Stanley.

The Partnership's net asset value per Unit of limited
partnership interest ("Unit(s)") as of December 31, 2002, upon
liquidation, was $3,870.80, representing an increase of 10.4
percent from the net asset value per Unit of $3,506.92 at December
31, 2001. This final net asset value was distributed to the
limited partners in accordance with the Partnership's Limited
Partnership Agreement.

For a more detailed description of the Partnership's business, see
subparagraph (c).

(b) Financial Information about Segments. For financial infor-
mation reporting purposes, the Partnership is deemed to have
engaged 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 was 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 Partner-
ship did not engage in any operations in foreign countries;
however, the Partnership (through the commodity brokers) entered
into forward contract transactions where foreign banks were
the contracting party and traded in futures and forwards on
foreign exchanges.

(e) Available Information. The Partnership files annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8K, and all amendments to these reports with the Securities
and Exchange Commission ("SEC"). You may read and copy any
document filed by the Partnership at the SEC's public reference
room at Room 1024, 450 Fifth Street, N.W., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for information on the
public reference room. The Partnership does not maintain an
internet website, however, the SEC maintains a website that
contains annual, quarterly, and current reports, proxy statements
and other information that issuers (including the Partnership)
file electronically with the SEC. The SEC's website address is
http://www.sec.gov.

Item 2. PROPERTIES
The Partnership's 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, 9th Floor, New York, NY 10022.

Item 3. LEGAL PROCEEDINGS
None.

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 was no established public trading
market for Units of the Partnership.

(b) Holders. The number of holders of Units at December 31, 2002
prior to final distribution was 425.

(c) Distributions. No distributions were made by the Partnership
since it commenced operations on July 15, 1983 through its
termination on December 31, 2002. Demeter has had sole
discretion to decide what distributions, if any, shall be made
to investors in the Partnership. Demeter made a distribution of
the Partnership's final net assets in February 2003 to the
limited partners of record at December 31, 2002.

Item 6. SELECTED FINANCIAL DATA (in dollars)

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

Liquidity. The Partnership deposited 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 were used as margin to
engage in trading. The assets were 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.

Investments 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 prompt liquidation of 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 trading in potentially profitable markets or prevent
prompt liquidation of unfavorable positions in such markets,
causing substantial losses. Either of these market conditions
could result in restrictions on redemptions.

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

Capital Resources. The Partnership did not have any capital
assets. Final redemptions and exchanges out of all remaining
Partnership Units were made in February 2003.

The Partnership had no capital resources following final
distribution of capital to the partners in accordance with the
Limited Partnership Agreement.

The Partnership had no off-balance sheet arrangements, nor
contractual obligations or commercial commitments to make future
payments. The contracts traded by the Partnership were
accounted for on a trade-date basis and marked to market on a
daily basis. The value of futures contracts is the settlement
price on the exchange on which that futures contract is traded on
a particular day. The value of foreign currency forward contracts
were based on the spot rate as of the close of business, New York
City time, on a given day.

Results of Operations.
General. The Partnership's results depended upon 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, 2002 and a general discussion of its trading
activities during each period. 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.

The Partnership's results of operations are set forth in financial
statements prepared in accordance with United States generally
accepted accounting principles, which require the use of certain
accounting policies that affect the amounts reported in these
financial statements, including the following: The
contracts the Partnership traded were accounted for on a trade-
date basis and marked to market on a daily basis. The difference
between their cost and market value was recorded on the Statements
of Operations as "Net change in unrealized profit/loss" for open
(unrealized) contracts, and recorded as "Realized profit/loss"
when open positions were closed out, and the sum of these amounts
constituted the Partnership's trading revenues. Interest income
revenue as well as management fees, incentive fees and brokerage
fees of the Partnership were recorded on an accrual basis.

Demeter believes that, based on the nature of the operations of
the Partnership, no assumptions other than those used relating to
the application of critical accounting policies are reasonably
plausible that could affect reported amounts.

At December 31, 2002, the Partnership's total capital to be
distributed upon liquidation was $8,530,860, a decrease of
$450,934 from the Partnership's total capital of $8,981,794 at
December 31, 2001. For the year ended December 31, 2002, the
Partnership generated net income of $870,909 and total redemptions
prior to the final distribution aggregated $1,321,843.

For the year ended December 31, 2002, the Partnership
recorded total trading revenues, including interest income, of
$1,977,963 and posted an increase in net asset value per Unit.
The most significant gains of approximately 10.2% were recorded
in the currency markets from long positions in the euro,
Australian dollar, and Norwegian krone relative to the U.S.
dollar as the value of the dollar weakened during the second
quarter, as well as in December, amid investors' fears concerning
increased tensions in the Middle East and prolonged uncertainty
regarding the U.S. economy. Additional gains of approximately
5.2% were recorded in the global interest rate futures markets
from long positions in Japanese, U.S., and European interest
rate futures as prices trended higher during the period from
June through September amid continued uncertainty in the equity
markets and negative economic data. Smaller gains of
approximately 3.4% were recorded in the global stock index
futures markets from short positions in U.S. and European stock
index futures as prices continued to trend lower throughout most
of the year due to suspicions regarding corporate accounting
practices, weak economic data, and geopolitical uncertainty. A
portion of the Partnership's gains was offset by losses of
approximately 1.5% in the agricultural futures markets from long
positions in cotton futures as prices moved without consistent
direction during the third quarter amid shifting supply and
demand concerns. Smaller losses were recorded in the
agricultural futures markets from positions in sugar and coffee
futures as prices moved erratically throughout most of the year.
In the metals futures markets, losses of approximately 1.4% were
recorded from positions in copper and nickel futures as an
uncertain economic outlook resulted in trendless price activity
among industrial metals throughout most of the year. Total
expenses for the year were $1,107,054, resulting in net income
of $870,909. The net asset value of a Unit increased from
$3,506.92 at December 31, 2001 to $3,870.80 at December 31, 2002.

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 per Unit. 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.

The Partnership's overall performance record represents varied
results of trading in different futures and forwards markets. For
an analysis of unrealized gains and (losses) by contract type and
a further description of 2002 trading results, refer to the
"Letter to the Limited Partners" in the Partnership's Annual
Report to Limited Partners for the year ended December 31, 2002,
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 was a party to financial
instruments with elements of off-balance sheet market and credit
risk. The Partnership traded 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 was 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 have lost all of its assets and investors would have
realized a 100% loss.

In addition to the Trading Advisor's internal controls, the
Trading Advisor had to comply with the trading policies of the
Partnership. These trading policies included standards for
liquidity and leverage with which the Partnership had to comply.
The Trading Advisor and Demeter monitored the Partnership's
trading activities to ensure compliance with the 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 is 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 dealt with these credit risks of the Partnership in
several ways. First, it monitored 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 informed the Partnership, as with all their customers,
of its net margin requirements for all its existing open
positions, but did not break that net figure down, exchange by
exchange. Demeter, however, has installed a system which
permitted it to monitor the Partnership's potential margin
liability, exchange by exchange. As a result, Demeter was 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 limited the amount of
its net assets that could be committed at any given time to
futures contracts and required, 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 was to reduce the credit exposure of the Partnership to
a single exchange and, historically, the Partnership's exposure
to any one exchange typically amounted to only a small
percentage of its total net assets.

Third, with respect to forward contract trading, the Partnership
traded with only those counterparties that Demeter, together with
Morgan Stanley DW, determined to be creditworthy. The
Partnership dealt with MS & Co. as the sole counterparty on
forward contracts.

See "Financial Instruments" under "Notes to Financial
Statements" in the Partnership's Annual Report to Limited
Partners for the year ended December 31, 2002, which is
incorporated by reference to Exhibit 13.01 of this Form 10-K.

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

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 were acquired for speculative
trading purposes only and, as a result, all or substantially all
of the Partnership's assets were at risk of trading loss. Unlike
an operating company, the risk of market-sensitive instruments was
central, not incidental, to the Partnership's main business
activities.

The futures and forwards traded by the Partnership involved
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 resulted 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 was 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 acted to increase or decrease the market
risk associated with the Partnership.

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 accounted for open positions on the basis of mark-
to-market accounting principles. Any loss in the market value of
the Partnership's open positions was 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 were 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. In other words,
one-day VaR for a portfolio is a number such that losses in this
portfolio are estimated to exceed the VaR only one day in
100. VaR typically does not represent the worst case outcome.

VaR is calculated using historical simulation. Demeter uses
approximately four years of daily market data (1,000
observations) and revalues its portfolio (using delta-gamma
approximations) for each of the historical market moves that
occurred over this time period. This generates a probability
distribution of daily "simulated profit and loss" outcomes. The
VaR is the appropriate percentile of this distribution. For
example, the 99% one-day VaR would represent the 10th worst
outcome from Demeter's simulated profit and loss series.

The Partnership's VaR computations were based on the risk
representation of the underlying benchmark for each instrument
or contract and did not distinguish between exchange and non-
exchange traded instruments and were also not based on exchange
and/or Dealer-based margin requirements.

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. Please further note that VaR as
described above may not be comparable to similarly titled
measures used by other entities.

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, 2002 and 2001.
The Partnership's VaR at December 31, 2002 was zero for all
market risk categories because it's open positions consisted of
unsettled London Metals Exchange positions that netted to zero
value. These positions carry no variation risk because their
settlement price has been established and cannot change in the
future. At both December 31, 2002 and 2001, the Partnership's
total capitalization was approximately $9 million.

Primary Market December 31, 2002 December 31, 2001
Risk Category Value at Risk Value at Risk

Currency 0.00% (2.57)%

Interest Rate 0.00 (0.71)

Equity 0.00 (0.52)

Commodity 0.00 (0.57)

Aggregate Value at Risk 0.00% (3.12)%
The VaR for a market category represents the one-day
downside risk for the aggregate exposures associated with this
market category. The aggregate VaR, listed above for the
Partnership, represents the aggregate VaR of the Partnership's
open positions across all the market categories, and is less than
the sum of the VaRs for all such market categories due to the
diversification benefit across asset classes.

The table above represents the VaR of the Partnership's open
positions at December 31, 2002 and 2001 only and is not
necessarily representative of the historic risk of an investment
in the Partnership.

The table below presents the Partnership's high, low and average
VaR, as a percentage of total net assets for the four quarterly
reporting periods from January 1, 2002 through December 31,
2002.

Primary Market Risk Category High Low Average
Currency (3.19)% 0.00% (1.81)%
Interest Rate (1.58) 0.00 (0.79)
Equity (0.65) 0.00 (0.40)
Commodity (1.58) 0.00 (0.82)
Aggregate Value at Risk (3.95)% 0.00% (2.34)%

Limitations on Value at Risk as an Assessment of Market
Risk
The face value of the market sector instruments held by the
Partnership was typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
caused 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 created a "risk of ruin" not typically found in other
investments. The relative size of the positions held may have
caused 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, 2002 and 2001, and for the end of
the four quarterly reporting periods during calendar year 2002.

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, 2002, the Partnership's cash balance at Morgan
Stanley DW was approximately 101% of its total net asset value.

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, 2002, by market sector.

Commodity.
Metals. The Partnership's metals exposure at December 31,
2002, was to fluctuations in the price of base metals, such
as aluminum, copper, nickel and zinc. Economic forces,
supply and demand inequalities, geographical factors and
market expectations influence price movements in these
markets.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
At December 31, 2002, there was no non-trading risk exposure
because the Partnership did not have any foreign currency
balances.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisor, separately, attempted
to manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempted 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 established
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 monitored and controlled the risk of the Partnership's
non-trading instrument, cash. Cash was 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)

Quarter Revenues/ Net Net Income/
Ended (Net Losses) Income/(Loss) (Loss) Per Unit

2002
March 31 $ (760,361) $ (912,777) $ (364.03)
June 30 2,341,398 1,917,051 785.83
September 30 955,588 622,858 258.31
December 31 (558,662) (756,223) (316.23)

Total $ 1,977,963 $ 870,909 $ 363.88

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

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 executive officers of Demeter are as follows:

Robert E. Murray, age 42, is the Managing Director of the
Strategic Products Group at Morgan Stanley and Chairman of the
Board Directors of Demeter Management Corporation, a leading
commodity pool operator with approximately $1.7 billion in
assets across a variety of U.S. and international public and
private managed futures funds. 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 18 years. He is also the
Chairman of the Board of Directors of Morgan Stanley Futures &
Currency Management Inc., Morgan Stanley's internal commodity
trading advisor. Mr. Murray 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.

Jeffrey A. Rothman, age 41, is the President and a Director of
Demeter. Mr. Rothman is the Executive Director of Morgan
Stanley Managed Futures, responsible for overseeing all aspects
of the firm's managed futures department. He is also President
and a Director of Morgan Stanley Futures & Currency Management
Inc. Mr. Rothman has been with the managed futures department
for sixteen years and most recently held the position of
National Sales Manager, assisting Branch Managers and Financial
Advisors with their managed futures education, marketing, and
asset retention efforts. Throughout his career, Mr. Rothman has
helped with the development, marketing and administration of
approximately 35 commodity pools. Mr. Rothman is an active
member of the Managed Funds Association and serves on its Board
of Directors.

Mitchell M. Merin resigned his position as a Director of
Demeter.

Joseph G. Siniscalchi, age 57, 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 61, is a Director of Demeter. Mr.
Oelsner is currently an Executive Vice President and head of the
Product Development Group at Morgan Stanley Investment Advisors
Inc., 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 an 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 51, is a Director of Demeter. Mr. Beech
has been associated with the futures industry for over 25 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 worked at two investment banking
firms in operations, research, managed futures and sales
management.

Raymond A. Harris, age 46, is a Director of Demeter and of
Morgan Stanley Futures & Currency Management Inc. Mr. Harris is
currently Managing Director of Global Products & Services at
Morgan Stanley. He previously served as Chief Accounting
Officer 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 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 40, is a Director of Demeter. Mr. DeLuca
is also a Director of Morgan Stanley Futures & Currency
Management Inc. Mr. DeLuca was appointed the Controller of Asset
Management for Morgan Stanley in June 1999. Prior to
that, Mr. DeLuca was a partner at the accounting firm of Ernst &
Young LLP, where he had Morgan Stanley 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.

Frank Zafran, age 47, is a Director of Demeter and of Morgan
Stanley Futures & Currency Management Inc. Mr. Zafran is an
Executive Director of Morgan Stanley and, in September 2002, was
named Chief Administrative Officer of Morgan Stanley's Global
Products & Services Division. Mr. Zafran joined the firm in
1979 and has held various positions in Corporate Accounting and
the Insurance Department, including Senior Operations Officer -
Insurance Division, until his appointment in 2000 as Director of
401(k) Plan Services, responsible for all aspects of 401(k) Plan
Services including marketing, sales and operations. Mr. Zafran
received a B.S. degree in Accounting from Brooklyn College, New
York.

Raymond E. Koch resigned his position as Chief Financial Officer
of Demeter.

Jeffrey D. Hahn, age 45, is the Chief Financial Officer
of Demeter. Mr. Hahn began his career at Morgan Stanley in 1992
and is currently an Executive Director responsible for the
management and supervision of the accounting, reporting, tax and
finance functions for the firm's private equity, managed
futures, and certain legacy real estate investing activities.
He is also Chief Financial Officer of Morgan Stanley Futures &
Currency Management Inc. From August 1984 through May 1992, Mr.
Hahn held various positions as an auditor at Coopers & Lybrand,
specializing in manufacturing businesses and venture capital
organizations. Mr. Hahn received his B.A. in Economics from St.
Lawrence University in 1979, an M.B.A. 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, 2002 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, 2002,
Demeter owned 100 Units of general partnership interest
representing a 4.54 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, 2002, 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 $419,061 and Demeter received
administration fees of $7,004 for the year ended December 31,
2002.

Item 14. CONTROLS AND PROCEDURES
(a) As of a date within 90 days of the filing date of this annual
report, the President and Chief Financial Officer of the
general partner, Demeter, have evaluated the effectiveness of
the Partnership's disclosure controls and procedures, and
have judged such controls and procedures (as defined in Rules
13a-14 and 15d-14 of the Exchange Act) to be effective.

(b) There have been no significant changes in the Partnership's
internal controls or in other factors that could
significantly affect these controls subsequent to the date of
their evaluation.

PART IV
Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS 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, 2002, 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, 2002, 2001, and 2000.

- - Statements of Financial Condition, including the Schedules of
Investments, as of December 31, 2002 and 2001.

- - Statements of Operations, Changes in Partners' Capital, and
Cash Flows for the years ended December 31, 2002, 2001 and
2000.

- - 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, 2002 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
No reports on Form 8-K have been filed by the Partnership during
the last quarter of the period covered by this report.

(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 31, 2003 BY: /s/ Jeffrey A. Rothman
Jeffrey A. Rothman, Director
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 31, 2003
Robert E. Murray, Director
and Chairman

/s/ Jeffrey A. Rothman March 31, 2003
Jeffrey A. Rothman, Director
and President

/s/ Joseph G. Siniscalchi March 31, 2003
Joseph G. Siniscalchi, Director

/s/ Edward C. Oelsner III March 31, 2003
Edward C. Oelsner III, Director

/s/ Richard A. Beech March 31, 2003
Richard A. Beech, Director

/s/ Raymond A. Harris March 31, 2003
Raymond A. Harris, Director

/s/ Anthony J. DeLuca March 31, 2003
Anthony J. DeLuca, Director

/s/ Frank Zafran March 31, 2003
Frank Zafran, Director,

/s/ Jeffrey D. Hahn March 31, 2003
Jeffrey D. Hahn, Chief
Financial Officer

CERTIFICATIONS

I, Jeffrey A. Rothman, President of Demeter Management
Corporation, the general partner of the registrant, certify that:

1. I have reviewed this annual report on Form 10-K of the
registrant;

2. Based on my knowledge, this annual report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-
14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure
that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the
period in which this annual report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this annual report (the "Evaluation
Date"); and

c) presented in this annual report our conclusion about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of Demeter's
board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the
registrant's ability to record, process, summarize and
report financial data and have identified for the
registrant's auditors any material weaknesses in internal
controls; and

b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated
in this annual report whether there were significant changes in
internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.

Date: March 31, 2003 /s/ Jeffrey A. Rothman
Jeffrey A. Rothman
President, Demeter Management
Corporation, general partner
of the registrant

CERTIFICATIONS

I, Jeffrey D. Hahn, Chief Financial Officer of Demeter Management
Corporation, the general partner of the registrant, certify that:

1. I have reviewed this annual report on Form 10-K of the
registrant;

2. Based on my knowledge, this annual report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-
14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure
that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the
period in which this annual report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this annual report (the "Evaluation
Date"); and

c) presented in this annual report our conclusion about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of Demeter's
board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the
registrant's ability to record, process, summarize and
report financial data and have identified for the
registrant's auditors any material weaknesses in internal
controls; and

b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated
in this annual report whether there were significant changes in
internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.

Date: March 31, 2003 /s/ Jeffrey D. Hahn
Jeffrey D. Hahn
Chief Financial Officer,
Demeter Management
Corporation, general
partner of the registrant

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, 2002 is filed herewith.
99.01 Certification of President of Demeter Management
Corporation, general partner of the Partnership, pursuant
to 18 U.S.C. Section 1350, as adopted, pursuant to Section
906 of the Sarbanes-Oxley Act of 2002.
99.02 Certification of Chief Financial Officer of Demeter
Management Corporation, general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.

EXHIBIT 99.01

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Columbia Futures Fund (the
"Partnership") on Form 10-K for the period ended December 31, 2002
as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Jeffrey A. Rothman, President, Demeter
Management Corporation, general partner of the Partnership,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section
13 or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.

By: /s/ Jeffrey A. Rothman

Name: Jeffrey A. Rothman
Title: President

Date: March 31, 2003

EXHIBIT 99.02

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Columbia Futures Fund (the
"Partnership") on Form 10-K for the period ended December 31, 2002
as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Jeffrey D. Hahn, Chief Financial
Officer, Demeter Management Corporation, general partner of the
Partnership, certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that:
(1) The Report fully complies with the requirements of Section
13 or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.

By: /s/ Jeffrey D. Hahn

Name: Jeffrey D. Hahn
Title: Chief Financial Officer

Date: March 31, 2003

Columbia
Futures
Fund

December 31, 2002
Annual Report

[LOGO] Morgan Stanley

COLUMBIA FUTURES FUND

HISTORICAL FUND PERFORMANCE

Presented below is the percentage change in Net Asset Value per Unit for each
calendar year the Fund traded. Also provided is the total return and annualized
return since inception for the Fund.

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
FUND % % % % % % % % % % % % % % % % % % % %
- ---------------------------------------------------------------------------------------------------------------------------------

Columbia Futures
Fund........... (18.3) (23.0) 6.0 (23.0) 48.9 0.1 3.8 58.1 11.7 2.0 14.4 (5.7) 28.2 19.1 22.6 12.0 (8.5) 9.1 10.9 10.4
(5.5 mos.)
- ---------------------------------------------------------------------------------------------------------------------------------

INCEPTION-
TO-DATE ANNUALIZED
RETURN RETURN
FUND % %
- --------------------------------------

Columbia Futures
Fund........... 295.0 7.3

- --------------------------------------

DEMETER MANAGEMENT CORPORATION

825 Third Avenue, 9th Floor
New York, New York 10022
Telephone (212) 310-6444

COLUMBIA FUTURES FUND
ANNUAL REPORT
2002

Dear Limited Partner:

This marks the twentieth and final annual report for the Columbia Futures
Fund (the "Fund"). This is the eighteenth report filed by Demeter Management
Corporation, the Fund's General Partner since February 1985. The Fund began the
year at a Net Asset Value per Unit of $3,506.92 and increased by 10.4% to
$3,870.80 on December 31, 2002. Since its inception in 1983, the Fund increased
by 295.0% (a compound annualized return of 7.3%). Since Demeter took over as
General Partner, the Fund increased by 509.0% (a compound annualized return of
10.7%).

The Fund terminated at December 31, 2002 in accordance with its Limited
Partnership Agreement. The final distribution of its assets will be made to
partners by the end of February 2003.

Detailed performance information for the Fund is located in the body of the
financial report. We provide a trading results by sector chart that portrays
trading gains and trading losses for the year in each sector in which the Fund
participated.

The trading results by sector chart indicates the year's composite percentage
returns generated by the specific assets dedicated to trading within each
market sector in which the Fund participated. Please note that there was not an
equal amount of assets in each market sector, and the specific allocations of
assets by the Fund to each sector varied over time within a predetermined
range. Below the chart is a description of the factors that influenced trading
gains and trading losses within the Fund during 2002.

Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation, 825 Third Avenue, 9th Floor, New York,
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/ Jeffrey A. Rothman
Jeffrey A. Rothman
President
Demeter Management Corporation
General Partner

COLUMBIA FUTURES FUND

[CHART]

YTD ended
December 31, 2002
-----------------
Currencies 10.15%
Interest Rates 5.22%
Stock Indices 3.37%
Energies -0.64%
Metals -1.36%
Agriculturals -1.49%

Note: Includes trading results and commissions but does not include other fees
or interest income.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the currency markets, gains were recorded from long positions in the
euro, Australian dollar, and Norwegian krone relative to the U.S. dollar as
the value of the dollar weakened during the second quarter, as well as in
December, amid investors' fears concerning increased tensions in the Middle
East and prolonged uncertainty regarding the U.S. economy.
.. In the global interest rate futures markets, gains resulted from long
positions in Japanese, U.S., and European interest rate futures as prices
trended higher during the period from June through September amid continued
uncertainty in the equity markets and negative economic data.
.. In the global stock index futures markets, gains were recorded from short
positions in U.S. and European stock index futures as prices continued to
trend lower throughout most of the year due to suspicions regarding
corporate accounting practices, weak economic data, and geopolitical
uncertainty.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. In the agricultural futures markets, losses were incurred from positions in
cotton futures as prices moved without consistent direction during the third
quarter amid shifting supply and demand concerns. Smaller losses were also
recorded from positions in sugar and coffee futures as prices moved
erratically throughout most of the year.
.. In the metals futures markets, losses were recorded from positions in copper
and nickel futures as an uncertain economic outlook resulted in trendless
price activity among industrial metals throughout most of the year.

COLUMBIA FUTURES FUND

INDEPENDENT AUDITORS' REPORT

To the Limited Partners and the General Partner:

We have audited the accompanying statements of financial condition of
Columbia Futures Fund (in liquidation) (the "Partnership"), including the
schedules of investments, as of December 31, 2002 and 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, 2002. 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 (in liquidation) at
December 31, 2002 and 2001, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2002 in
conformity with accounting principles generally accepted in the United States
of America.

/s/ Deloitte & Touche LLP

New York, New York
February 14, 2003

COLUMBIA FUTURES FUND (IN LIQUIDATION)

STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31,
--------------------
2002 2001
--------- ---------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 8,566,545 8,557,221
Net unrealized gain on open contracts
(MS&Co.) 69,460 636,416
Net unrealized loss on open contracts
(MSIL) (9,963) (15,150)
--------- ---------
Total net unrealized gain on
open contracts 59,497 621,266
--------- ---------
Total Trading Equity 8,626,042 9,178,487
Due from Morgan Stanley DW 11,986 4,156
Interest receivable (Morgan Stanley DW) 7,435 10,429
--------- ---------
Total Assets 8,645,463 9,193,072
========= =========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Administrative expenses payable 100,361 108,464
Accrued management fees 14,242 15,141
Redemptions payable -- 87,673
--------- ---------
Total Liabilities 114,603 211,278
--------- ---------

PARTNERS' CAPITAL
Partners' Capital (2,561.166 Units) -- 8,981,794
Partners' Capital to be distributed upon
liquidation (2,203.899 Units) 8,530,860 --
--------- ---------
Total Partners' Capital 8,530,860 8,981,794
--------- ---------
Total Liabilities and Partners' Capital 8,645,463 9,193,072
========= =========

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

NET ASSET VALUE PER UNIT TO BE
DISTRIBUTED UPON
LIQUIDATION 3,870.80
=========

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

COLUMBIA FUTURES FUND (IN LIQUIDATION)

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------
2002 2001 2000
--------- --------- ---------
$ $ $

REVENUES
Trading profit (loss):
Realized 2,395,541 1,526,249 582,252
Net change in unrealized (561,769) (231,836) 518,814
--------- --------- ---------
1,833,772 1,294,413 1,101,066
Proceeds from litigation settlement 24,194 -- --
--------- --------- ---------
Total Trading Results 1,857,966 1,294,413 1,101,066
Interest income
(Morgan Stanley DW) 119,997 233,117 378,014
--------- --------- ---------
Total 1,977,963 1,527,530 1,479,080
--------- --------- ---------
EXPENSES
Brokerage commissions
(Morgan Stanley DW) 419,061 364,044 368,419
Incentive fee 374,247 -- --
Management fees 181,072 166,573 303,037
Administrative expenses 112,000 90,000 81,000
Transaction fees and costs 20,674 16,111 20,006
--------- --------- ---------
Total 1,107,054 636,728 772,462
--------- --------- ---------
NET INCOME 870,909 890,802 706,618
========= ========= =========
NET INCOME ALLOCATION:
Limited Partners 834,521 856,469 680,272
General Partner 36,388 34,333 26,346

NET INCOME PER UNIT:
Limited Partners 363.88 343.33 263.46
General Partner 363.88 343.33 263.46

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

FOR THE YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000

UNITS OF
PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
----------- ---------- ------- ----------
$ $ $

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
Net income -- 834,521 36,388 870,909
Redemptions (357.267) (1,321,843) -- (1,321,843)
--------- ---------- ------- ----------
Partners' Capital to be
distributed upon
liquidation,
December 31, 2002 2,203.899 8,143,780 387,080 8,530,860
========= ========== ======= ==========

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

COLUMBIA FUTURES FUND (IN LIQUIDATION)

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------
2002 2001 2000
---------- --------- ---------
$ $ $

CASH FLOWS FROM
OPERATING ACTIVITIES
Net income 870,909 890,802 706,618
Noncash item included in
net income:
Net change in unrealized 561,769 231,836 (518,814)
(Increase) decrease in operating
assets:
Due from Morgan Stanley DW (7,830) (4,156) --
Interest receivable (Morgan
Stanley DW) 2,994 22,211 (2,302)
Increase (decrease) in operating
liabilities:
Administrative expenses payable (8,103) 43,386 3,469
Accrued management fees (899) 907 (13,789)
---------- --------- ---------
Net cash provided by operating
activities 1,418,840 1,184,986 175,182
---------- --------- ---------

CASH FLOWS FROM
FINANCING ACTIVITIES
Increase (decrease) in redemptions
payable (87,673) 65,528 (29,476)
Redemptions of Units (1,321,843) (413,245) (557,537)
---------- --------- ---------
Net cash used for
financing activities (1,409,516) (347,717) (587,013)
---------- --------- ---------
Net increase (decrease) in cash 9,324 837,269 (411,831)
Balance at beginning of period 8,557,221 7,719,952 8,131,783
---------- --------- ---------
Balance at end of period 8,566,545 8,557,221 7,719,952
========== ========= =========

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

COLUMBIA FUTURES FUND (IN LIQUIDATION)

SCHEDULES OF INVESTMENTS

DECEMBER 31, 2002 AND 2001

FUTURES AND FORWARD CONTRACTS: LONG GAIN/(LOSS) SHORT GAIN/(LOSS) NET UNREALIZED GAIN/(LOSS)
- ------------------------------ ---------------- ----------------- --------------------------

2002 FINAL PARTNERSHIP NET ASSETS: $8,530,860 $ $ $

Commodity (9,963) -- (9,963)
------- ------- -------
Grand Total: (9,963) -- (9,963)
======= =======
Unrealized Currency Gain 69,460
-------
Total Net Unrealized Gain per Statement of Financial Condition 59,497
=======

2001 PARTNERSHIP NET ASSETS: $8,981,794
Foreign currency 14,671 587,596 602,267
Commodity (18,055) (61,930) (79,985)
Interest rate (20,994) 37,412 16,418
Equity 17,823 -- 17,823
------- ------- -------
Grand Total: (6,555) 563,078 556,523
======= =======
Unrealized Currency Gain 64,743
-------
Total Net Unrealized Gain per Statement of Financial Condition 621,266
=======

FUTURES AND FORWARD CONTRACTS: PERCENTAGE OF NET ASSETS # OF CONTRACTS/NOTIONAL AMOUNTS
- ------------------------------ ------------------------ -------------------------------

2002 FINAL PARTNERSHIP NET ASSETS: $8,530,860 %

Commodity (0.12) --
-----
Grand Total: (0.12)
=====
Unrealized Currency Gain

Total Net Unrealized Gain per Statement of Financial Condition

2001 PARTNERSHIP NET ASSETS: $8,981,794
Foreign currency 6.71* 1,222,028,715
Commodity (0.89) 180
Interest rate 0.18 145
Equity 0.20 21
-----
Grand Total: 6.20
=====
Unrealized Currency Gain

Total Net Unrealized Gain per Statement of Financial Condition

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

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

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS

- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DISSOLUTION OF THE PARTNERSHIP. The Partnership was terminated on December 31,
2002 in accordance with the Limited Partnership Agreement.

ORGANIZATION. Columbia Futures Fund (the "Partnership") was 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 Partnership's general partner was Demeter Management Corporation
("Demeter"). The non-clearing commodity broker was Morgan Stanley DW Inc.
("Morgan Stanley DW"). The clearing commodity brokers were Morgan Stanley & Co.
Incorporated ("MS&Co.") and Morgan Stanley & Co. International Limited
("MSIL"). Demeter, Morgan Stanley DW, MS&Co. and MSIL are wholly-owned
subsidiaries of Morgan Stanley.
Demeter was required to maintain a 1% minimum interest in the equity of the
Partnership and income (losses) were shared by Demeter and the limited partners
based upon their proportional ownership interests.
Effective June 20, 2002, Morgan Stanley Dean Witter & Co. changed its name to
Morgan Stanley.

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 paid the Partnership interest income
based upon 80% of its average equity at a rate equal to the average yield on
13-week U.S.

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(continued)

Treasury bills. For purposes of such interest payments, Net Assets did not
include monies owed to the Partnership on futures interests.

NET INCOME (LOSS) PER UNIT. Net income (loss) per unit of limited partnership
interest ("Unit(s)") was computed using the weighted average number of Units
outstanding during the period.

CONDENSED SCHEDULES OF INVESTMENTS. In March 2001, the American Institute of
Certified Public Accountants' Accounting Standards Executive Committee issued
Statement of 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 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, consisted of (A) cash on deposit with Morgan Stanley DW,
MS&Co. and MSIL used as margin for trading and (B) net unrealized gains or
losses on open contracts valued at market and calculated as the difference
between original contract value and market value.
The Partnership, in the normal course of business, entered 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
resulted in unrealized gains or losses, these amounts were 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 consistently applied its right to offset.

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(continued)

BROKERAGE COMMISSIONS AND RELATED TRANSACTION FEES AND COSTS. Brokerage
commissions and transactions fees and costs were accrued on a half-turn basis,
at 80% and 100%, respectively, of the rates Morgan Stanley DW charges parties
that are not clearinghouse members. Total brokerage commissions and transaction
fees and costs combined were 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 bore all operating expenses related to its
trading activities. These included filing fees, clerical, administrative,
auditing, accounting, mailing, printing, and other incidental operating
expenses as permitted by the Limited Partnership Agreement. In addition, the
Partnership incurred a monthly management fee and was subject to incentive
fees. Demeter bore 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.

DISTRIBUTIONS. Demeter had sole discretion to make distributions, other than
redemptions of Units, on a pro-rata basis, however, no distributions were made
during the life of the Partnership.

Final distribution of Partnership Net Assets were made in accordance with the
Limited Partnership Agreement.

REDEMPTIONS. Limited Partners were able to 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.

LITIGATION SETTLEMENT. On February 27, 2002, the Partnership received
notification of a preliminary entitlement to payment from the Sumitomo Copper
Litigation Settlement Administrator and received payment of this settlement
award in the amount of $24,194 as of August 30, 2002.

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(continued)

- --------------------------------------------------------------------------------
2. RELATED PARTY TRANSACTIONS
The Partnership paid brokerage commissions to Morgan Stanley DW as described in
Note 1.
The Partnership's cash was on deposit with Morgan Stanley DW, MS&Co., and
MSIL in futures interests trading accounts to meet margin requirements as
needed. Morgan Stanley DW paid interest on these funds as described in Note 1.
For general administrative services performed for the Partnership, Demeter
received a monthly administration fee equal to $1.50 per limited partner
outstanding. For the years ended December 31, 2002, 2001 and 2000, Demeter
received $7,004, $8,378 and $9,211, respectively, for such administrative
services.

- --------------------------------------------------------------------------------
3. TRADING ADVISOR
Demeter, on behalf of the Partnership, retained a commodity trading advisor to
make all trading decisions for the Partnership. Since January 22, 1988, John W.
Henry & Company, Inc. ("JWH") served as the sole trading advisor.
Compensation to the trading advisor consisted of a management fee and an
incentive fee as follows:

MANAGEMENT FEE. The management fee was 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 was 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 was accrued in each month in which New Appreciation
occurred. In those months in which New Appreciation was negative, previous
accruals (on Units currently outstanding), if any, during each fiscal quarter
were reduced. Prior to December 1, 2000, an incentive fee was paid on each Unit
equal to 15% of the excess.

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(continued)

- --------------------------------------------------------------------------------
4. FINANCIAL INSTRUMENTS
The Partnership traded 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 market value of contracts was based on closing prices quoted by the
exchange, bank or clearing firm through which the contracts are traded.
The Partnership's contracts were accounted for on a trade-date basis and
marked to market on a daily basis.
The Partnership accounted 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.

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(continued)

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
---- --------- --------- ------- --------- ---------
$ $ $ $ $

2002 59,497 -- 59,497 Feb. 2003 --
2001 18,999 602,267 621,266 Dec. 2002 Mar. 2002

The Partnership had credit risk associated with counterparty nonperformance.
The credit risk associated with the instruments in which the Partnership was
involved is limited to the amounts reflected in the Partnership's statements of
financial condition.
The Partnership also had credit risk because Morgan Stanley DW, MS&Co., and
MSIL acted as the futures commission merchants or the counterparties with
respect to most of the Partnership's assets. Exchange- traded futures contracts
were 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 $8,626,042 and
$8,576,220 at December 31, 2002 and 2001, respectively. With respect to the
Partnership's off-exchange-traded forward currency contracts, there were no
daily settlements of variations in value nor was 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 was at risk to the ability of MS&Co., the sole
counterparty on all of such contracts, to perform. The Partnership had a
netting agreement with MS&Co. This agreement,

COLUMBIA FUTURES FUND (IN LIQUIDATION)

NOTES TO FINANCIAL STATEMENTS
(concluded)

which sought to reduce both the Partnership's and MS&Co.'s exposure on
off-exchange-traded forward currency contracts, would have materially decreased
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, 2002: $3,506.92
---------
NET OPERATING RESULTS:
Realized Profit 996.70
Unrealized Loss (233.17)
Proceeds from Litigation Settlement 10.04
Interest Income 49.81
Expenses (459.50)
---------
Net Income 363.88
---------
NET ASSET VALUE TO BE DISTRIBUTED,
DECEMBER 31, 2002: $3,870.80
=========

Expense Ratio 12.4%
Net Income Ratio 9.8%
TOTAL RETURN 10.4%

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