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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 fiscal year ended December 31, 1997 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 of organization)
Identification No.)

c/o Demeter Management Corporation
Two World Trade Center, New York, N.Y. - 62nd Flr.
10048
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(212) 392-5454
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)


(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 10K. [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, or the average bid and asked
prices of such units, as of a specified date within 60 days prior
to the date of filing: $9,017,653.69 at January 31, 1998.

DOCUMENTS INCORPORATED BY REFERENCE
(See Page 1)



COLUMBIA FUTURES FUND
INDEX TO ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 1997


Page No.


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

Part I .

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

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

Item 3. Legal Proceedings. . . . . . . . . . . . . . . . .
. 4-5

Item 4. Submission of Matters to a Vote of Security
Holders . . 6

Part II.

Item 5. Market for the Registrant's Partnership Units and
Related Security Holder Matters . . . . . . . . .
. . 7

Item 6. Selected Financial Data . . . . . . . . . . . . .
. . . 8

Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . .
. . 9-16

Item 8. Financial Statements and Supplementary Data. . . .
. 16

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure. . . . . . . .
. 16

Part III.

Item10. Directors, Executive Officers, Promoters and
Control Persons of the Registrant . . . . . . . .
. 17-22

Item11. Executive Compensation . . . . . . . . . . . . . .
. . 22

Item12. Security Ownership of Certain Beneficial Owners
and Management . . . . . . . . . . . . . . . . . .
. 22

Item13. Certain Relationships and Related Transactions . .
22-23


Part IV.

Item14. Exhibits, Financial Statement Schedules, and
Reports on Form 8-K . . . . . . . . . . . . . . .
. 24






DOCUMENTS INCORPORATED BY REFERENCE


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



Documents Incorporated Part
of Form 10-K

Partnership's Annual Report on Form
IV
10-K for the fiscal year ended
December 31, 1985, File No. 0-12431

Partnership's Annual Report on Form
IV
10-K for the fiscal year ended
December 31, 1986, File No. 0-12431

December 31, 1997 Annual Report for
II & IV
the Columbia Futures Fund





















PART I

Item 1. BUSINESS

(a) General Development of Business. Columbia Futures

Fund (the "Partnership") is a New York limited partnership

formed on December 24, 1981, to engage in the speculative

trading of commodity futures contracts, including futures

contracts in foreign currencies and financial instruments,

and other commodity interests ("collectively futures

interests"). The Partnership commenced trading on July 15,

1983. The Partnership's General Partner is Demeter

Management Corporation ("Demeter"). Demeter is a wholly-

owned subsidiary of Morgan Stanley, Dean Witter, Discover &

Co. ("MSDWD").

Through July 31, 1997, the sole commodity broker for

most of the Partnership's transactions was Dean Witter Reynolds,

Inc, ("DWR") also a subsidiary of MSDWD. On July 31,

1997, DWR closed the sale of its institutional futures

business and foreign currency trading operations to Carr

Futures, Inc. ("Carr"), a subsidiary of Credit Agricole

Indosuez. Following the sale, Carr became the clearing

commodity broker for the Partnership's futures and futures

options trades and the counterparty on the Partnership's

foreign currency trades. DWR will continue to serve as the

non-clearing commodity broker for the Partnerships with Carr

providing all clearing services for the Partnerships'

transactions.







Since 1988, the sole trading advisor of the Partnership

is John W. Henry & Company, Inc. ("JWH") or the "Trading

Advisor". The Partnership's net asset value per unit of

limited partnership interest ("Unit"), as of December 31,

1997, was $2,830.91, representing an increase of 22.6

percent from the net asset value per unit of $2,309.06 at

December 31, 1996.

(b) Financial Information about Industry Segments. The

Partner-ship's business comprises only one segment for

financial reporting purposes, speculative trading of

commodity futures contracts and other commodity interests.

The relevant financial information is presented in Items 6

and 8.

(c) Narrative Description of Business. The Partnership

was formed to engage in speculative trading of futures

contracts and commodity interests (including futures

contracts in foreign currencies and financial instruments),

pursuant to trading instructions provided by JWH.

(d) Financial Information About Foreign and Domestic

Operations and Export Sales. 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 interests on

foreign exchanges.





Item 2. PROPERTIES
The executive and administrative offices are located

within the offices of DWR. The DWR offices utilized by the

Partnership are located at Two World Trade Center, 62nd

Floor, New York, NY 10048.


Item 3. LEGAL PROCEEDINGS

On September 6, 10, and 20, 1996, and on March 13,

1997, similar purported class actions were filed in the

Superior Court of the State of California, County of Los

Angeles, on behalf of all purchasers of interests in limited

partnership commodity pools sold by DWR. Named defendants

include DWR, Demeter, Dean Witter Futures and Currency

Management, Inc.("DWFCM"), MSDWD, (all such parties referred

to hereafter as the "Dean Witter Parties"), certain limited

partnership commodity pools of which Demeter is the general

partner, and certain trading advisors (including JWH) to

those pools. On June 16, 1997, the plaintiffs in the above

actions filed a consolidated amended complaint, alleging,

among other things, that the defendants committed fraud,

deceit, negligent misrepresentation, various violations of

the California Corporations Code, intentional and negligent

breach of fiduciary duty, fraudulent and unfair business

practices, unjust enrichment, and conversion in the sale and

operation of the various limited partnerships commodity

pools. Similar purported class actions were also filed on

September 18 and 20, 1996, in the Supreme Court of the



State of New York, New York County, and on November 14, 1996

in the Superior Court of the State of Delaware, New Castle

County, against the Dean Witter Parties and certain trading

advisors (including JWH) on behalf of all purchasers of

interests in various limited partnership commodity pools

sold by DWR. A consolidated and amended complaint in the

action pending in the Supreme Court of the State of New York

was filed on August 13, 1997, alleging that the defendants

committed fraud, breach of fiduciary duty, and negligent

misrepresentation in the sale and operation of the various

limited partnership commodity pools. On December 16, 1997,

upon motion of the plaintiffs, the action pending in the

Superior Court of the State of Delaware was voluntarily

dismissed without prejudice. The complaints seek unspecified

amounts of compen-satory and punitive damages and other

relief. It is possible that additional similar actions may

be filed and that, in the course of these actions, other

parties could be added as defendants. The Dean Witter

Parties believe that they have strong defenses to, and they

will vigorously contest, the actions. Although the ultimate

outcome of legal proceedings cannot be predicted with

certainty, it is the opinion of management of the Dean

Witter Parties that the resolution of the actions will not

have a material adverse effect on the financial condition or

the results of operations of any of the Dean Witter Parties.





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

There is no established public trading market for the

Units of Limited Partnership Interest in the Partnership.

The number of holders of Units at December 31, 1997 was

approximately 649. No distributions have been made by the

Partnership since it commenced trading operations on July

15, 1983. Demeter has sole discretion to decide what

distributions, if any, shall be made to investors in the

Partnership. No determination has yet been made as to

future distributions.































Item 6. SELECTED FINANCIAL DATA (in dollars)






For the Years Ended December 31,

1997 1996 1995 1994
1993


Total Revenues
(including interest) 2,827,745 2,295,489 2,756,685 482,814 1,994,437


Net Income (Loss) 1,782,050 1,340,938 1,815,259 (404,752) 1,024,820


Net Income (Loss)
Per Unit (Limited
& General Partners) 521.85 370.17 426.63 (92.18) 201.43


Total Assets 9,737,821 8,628,063 7,892,138 6,694,540 7,970,769


Total Limited Partners'
Capital 9,177,928 8,110,079 7,493,781 6,428,721 7,479,264


Net Asset Value Per
Unit of Limited
Partnership Interest 2,830.91 2,309.06 1,938.89 1,512.26 1,604.44



















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

Liquidity. The Partnership's assets are deposited in

separate commodity trading accounts with DWR and Carr, the

commodity brokers, and are used by the Partnership as margin

to engage in commodity futures contract trading. DWR and

Carr hold such assets in either designated depositories or

in securities approved by the Commodity Futures Trading

Commission ("CFTC") for investment of customer funds. The

Partnership's assets held by DWR and Carr may be used as

margin solely for the Partnership's trading. Since the

Partnership's sole purpose is to trade in commodity futures

contracts and other commodity interests, it is expected that

the Partnership will continue to own such liquid assets for

margin purposes.

The Partnership's investment in commodity futures

contracts and other commodity interests may be illiquid. If

the price for a futures contract for a particular commodity

has increased or decreased by an amount equal to the "daily

limit", positions in the commodity can neither be taken nor

liquidated unless traders are willing to effect trades at or

within the limit. Commodity futures prices have

occasionally moved the daily limit for several consecutive

days with little or no trading. Such market conditions

could prevent the Partnership from promptly liquidating its

commodity futures positions.





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 and subjecting it to substantial losses. Either of

these market conditions could result in restrictions on

redemptions.

Market Risk. The Partnership trades futures, options

and forward contracts in interest rates, stock indices,

commodities and currencies. In entering into these

contracts there exists a risk to the Partnership (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 should move against all of the futures interest

positions held by the Partnership at the same time, and if

the Trading Advisor were unable to offset futures interest

positions of the Partnership, the Partnership could lose all

of its assets and the Limited Partners would realize a 100%

loss. The Partnership has established Trading Policies,

which include standards for liquidity and leverage which

help control market risk. Both the Trading Advisor and

Demeter monitor the Partnership's trading activities on a

daily basis to ensure compliance with the Trading Policies.

Demeter may





(under terms of the Management Agreement) override the

trading instructions of the Trading Advisor to the extent

necessary to comply with the Partnership's Trading Policies.

Credit Risk. In addition to market risk, in entering

into futures, options 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 of the Partnership

for futures contracts traded in the United States and most

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, and, as such,

should significantly reduce this credit risk. For example,

a clearinghouse may cover a default by (i) 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 (ii)

assessing its members. In cases where the Partnership

trades on a foreign exchange where the clearinghouse is not

funded or guaranteed by the membership or where the exchange

is a "principals' market" in which performance is the

responsibility of the exchange member and not the



exchange or a clearinghouse, or when the Partnership enters

into off-exchange contracts with a counterparty, the sole

recourse of the Partnership will be the clearinghouse, the

exchange member or the off-exchange contract counterparty,

as the case may be.

There can be no assurance that a clearinghouse,

exchange or other exchange member will meet its obligations

to the Partnership and the Partnership is not indemnified

against a default by such parties from Demeter or MSDWD or

DWR. 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, clearinghouse or other exchange

member default on trades effected for the broker's

customers; any such obligation on the part of the broker

appears even less clear where the default occurs in a non-US

jurisdiction.

Demeter deals with the credit risks of all

Partnership's for which it serves as General Partner in

several ways. First, it monitors each 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 each 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 each partnership's



potential margin liability, exchange by exchange. Demeter

is then able to monitor the individual 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, as discussed earlier, each partnership's

trading policies limit the amount of partnership Net Assets

that can be committed at any given time to futures contracts

and require, in addition, a certain 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 any

partnership to any single exchange and, historically, such

partnership exposure has typically amounted to only a small

percentage of its total Net Assets. On those relatively few

occasions where a partnership's credit exposure has climbed

above that level, Demeter has dealt with the situations on a

case by case basis, carefully weighing whether the increased

level of credit exposure remained appropriate. Demeter

expects to continue to deal with such situations in a

similar manner in the future.

Third, Demeter has secured, with respect to Carr acting

as the clearing broker for the partnerships, a guarantee by

Credit Agricole Indosuez, Carr's parent, of the payment of

the "net liquidating value" of the transactions (futures,

options and forward contracts) in each partnership's

account. As of December 31, 1997, Credit Agricole



Indosuez' total capital was over $3.25 billion and it is

currently rated AA2 by Moody's.

With respect to forward contract trading, the

partnerships trade with only those counterparties which

Demeter, together with DWR, have determined to be

creditworthy. At the date of this filing, the

partnerships deal only with Carr as their counterparty on

forward contracts. The guarantee by Carr's parent,

discussed above, covers these forward contracts.

See "Financial Instruments" under Notes to Financial

Statements in the Partnership's 1997 Annual Report to

Partners, incorporated by reference in this Form 10-K.

Capital Resources. The Partnership does not have, nor

does it expect to have, any capital assets. Redemptions of

additional Units of Limited Partnership Interest in the

future will affect the amount of funds available for

investments in subsequent periods. As redemptions are at

the discretion of Limited Partners, it is not possible to

estimate the amount and therefore the impact of future

redemptions.

Results of Operations. As of December 31, 1997, the

Partnership's total capital was $9,461,019, an increase of

$1,120,034 from the Partnership's total capital of

$8,340,985 at December 31, 1996. For the year ended

December 31, 1997, the Partnership generated net income of

$1,782,050 and total redemptions aggregated $662,016.



For the year ended December 31, 1997, the Partnership's

total trading revenues including interest income were

$2,827,745. The Partnership's total expenses for the year

were $1,045,695, resulting in net income of $1,782,050. The

value of an individual unit in the Partnership increased

from $2,309.06 at December 31, 1996 to $2,830.91 at December

31, 1997.

As of December 31, 1996, the Partnership's total

capital was $8,340,985, an increase of $653,315 from the

partnership's total capital of $7,687,670 at December 31,

1995. For the year ended December 31, 1996, the Partnership

generated net income of $1,340,938 and total redemptions

aggregated $687,623.

For the year ended December 31, 1996, the Partnership's

total trading revenues including interest income were

$2,295,489. The Partnership's total expenses for the year

were $954,551, resulting in net income of $1,340,938. The

value of an individual unit in the Partnership increased

from $1,938.89 at December 31, 1995 to $2,309.06 at December

31, 1996.

As of December 31, 1995, the Partnership's total

capital was $7,687,670, an increase of $1,107,723 from the

Partnership's total capital of $6,579,947 at December 31,

1994. For the year ended December







31, 1995, the Partnership generated net income of $1,815,259

and total redemptions aggregated $707,536.

For the year ended December 31, 1995, the Partnership's

total trading revenues including interest income were

$2,756,685. The Partnership's total expenses for the year

were $941,426, resulting in net income of $1,815,259. The

value of an individual unit in the Partnership

increased from $1,512.26 at December 31, 1994 to $1,938.89

at December 31, 1995.

The Partnership's overall performance record represents

varied results of trading in different commodity markets.

For a further description of trading results, refer to the

letter to the Limited Partners in the accompanying 1997

Annual Report to Partners, incorporated by reference in this

Form 10-K. The Partnership's gains and losses are allocated

among its Limited Partners for income tax purposes.



Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required by this Item appears in the

attached 1997 Annual Report to Partners and is incorporated

by reference in this Annual Report on Form 10-K.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE

None.




PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
CONTROL PERSONS OF THE REGISTRANT

General Partner

Demeter, a Delaware corporation, was formed on August

18, 1977 to act as a commodity pool operator and is

registered with the CFTC as a commodity pool operator and

currently is a member of the National Futures Association

("NFA") in such capacity. Demeter is wholly-owned by MSDWD

and is an affiliate of DWR. MSDWD, DWR and Demeter may each

be deemed to be "promoters" and/or a "parent" of the

Partnership within the meaning of the federal securities

laws.

On July 21, 1997, MSDWD, the sole shareholder of

Demeter, appointed a new Board of Directors consisting of

Richard M. DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph

G. Siniscalchi, Edward C. Oelsner III, and Robert E. Murray.

Dean Witter Reynolds Inc.

DWR is a financial services company which provides to

its individual, corporate and institutional clients services

as a broker in securities and commodity interest contracts,

a dealer in corporate, municipal and government securities,

an investment adviser and an agent in the sale of life

insurance and various other products and services. DWR is a

member firm of the New York Stock Exchange, the American

Stock Exchange, the Chicago Board Options Exchange, and

other major securities



exchanges.

DWR is registered with the CFTC as a futures commission

merchant and is a member of the NFA in such capacity. As of

December 31, 1997, DWR is servicing its clients through a

network of approximately 401 branch offices with

approximately 10,155 account executives servicing individual

and institutional client accounts.

Directors and Officers of the General Partner

The directors and officers of Demeter as of December

31, 1997 are as follows:

Richard M. DeMartini, age 45, is the Chairman of the

Board and a Director of Demeter. Mr. DeMartini is also

Chairman of the Board and a Director of Dean Witter Futures

& Currency Management Inc. ("DWFCM"). Mr. DeMartini is

president and chief operating officer of MSDWD's Individual

Asset Management Group. He was named to this position in

May of 1997 and is responsible for Dean Witter InterCapital,

Van Kampen American Capital, insurance services, managed

futures, unit trust, investment consulting services, Dean

Witter Realty, and NOVUS Financial Corporation. Mr.

DeMartini is a member of the MSDWD management committee, a

director of the InterCapital funds, a trustee of the TCW/DW

funds and a trustee of the Van Kampen American Capital and

Morgan Stanley retail funds. Mr. DeMartini has been with

Dean Witter his entire career, joining the firm in 1975 as

an account executive. He



served as a branch manager, regional director and national

sales director, before being appointed president and chief

operating officer of the Dean Witter Consumer Markets. In

1988 he was named president and chief operating officer of

Sears' Consumer Banking Division and in January 1989 he

became president and chief operating officer of Dean Witter

Capital. Mr. DeMartini has served as chairman of the board

of the Nasdaq Stock Market, Inc. and vice chairman of the

board of the National Association of Securities Dealers,

Inc. A native of San Francisco, Mr. DeMartini holds a

bachelor's degree in marketing from San Diego State

University.

Mark J. Hawley, age 54, is President and a Director of

Demeter. Mr. Hawley is also President and a Director of

DWFCM. Mr. Hawley joined DWR in February 1989 as Senior

Vice President and is currently the Executive Vice President

and Director of DWR's Managed Futures Department. From 1978

to 1989, Mr. Hawley was a member of the senior management

team at Heinold Asset Management, Inc., a CPO, and was

responsible for a variety of projects in public futures

funds. From 1972 to 1978, Mr. Hawley was a Vice President

in charge of institutional block trading for the Mid-West at

Kuhn Loeb & Company.

Lawrence Volpe, age 50, is a Director of Demeter and

DWFCM. Mr. Volpe joined DWR as a Senior Vice President and

Controller in September 1983, and currently holds those

positions. From July 1979 to September



1983, he was associated with E.F. Hutton & Company Inc. and

prior to his departure, held the positions of First Vice

President and Assistant Controller. From 1970 to July 1979,

he was associated with Arthur Anderson & Co. and prior to

his departure served as audit manager in the financial

services division.

Joseph G. Siniscalchi, age 52, is a Director of

Demeter. Mr. Siniscalchi joined DWR in July 1984 as a First

Vice President, Director of General Accounting and served as

a Senior Vice President and Controller for DWR's Securities

division through 1997. He is currently Executive Vice

President and Director of the Operations Division of DWR.

From February 1980 to July 1984, Mr. Siniscalchi was

Director of Internal Audit at Lehman Brothers Kuhn Loeb,

Inc.

Edward C. Oelsner, III, age 55, is a Director of

Demeter. Mr. Oelsner is currently an Executive Vice

President and head of the Product Development Group at Dean

Witter InterCapital Inc., an affiliate of DWR. Mr. Oelsner

joined DWR in 1981 as a Managing Director in DWR's

Investment Banking Department specializing in coverage of

regulated industries and, subsequently, served as head of

the DWR Retail Products Group. Prior to joining DWR, 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.

Robert E. Murray, age 37, is a Director of Demeter.

Mr. Murray is also a Director of DWFCM. Mr. Murray is

currently a Senior Vice President of DWR's Managed Futures

Department and is the Senior Administrative Officer of

DWFCM. Mr. Murray began his career at DWR in 1984 and is

currently the Director of Product Development for the

Managed Futures Department. He is responsible for the

development and maintenance of the proprietary Fund

Management System utilized by DWFCM and Demeter in

organizing information and producing reports for monitoring

clients' accounts. Mr. Murray currently serves as a

Director of the Managed Funds Association. Mr. Murray

graduated from Geneseo State University in May 1983 with a

B.A. degree in Finance.

Patti L. Behnke, age 37, is Vice President and Chief

Financial Officer of Demeter. Ms. Behnke joined DWR in

April 1991 as Assistant Vice President of Financial

Reporting and is currently a First Vice President and

Director of Financial Reporting and Managed Futures

Accounting in the Individual Asset Management Group. Prior

to joining DWR, Ms. Behnke held positions of increasing

responsibility at L.F. Rothschild & Co. and Carteret Savings

Bank. Ms. Behnke began her career







at Arthur Anderson & Co., where she was employed in the

audit division from 1982-1986. She is a member of the AICPA

and the New York State Society of Certified Public

Accountants.

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 - As of December 31, 1997 there were no

persons known to be beneficial owners of more than 5 percent

of the Units of Limited Partnership Interest in the

Partnership.

(b) Security Ownership of Management - At December 31,

1997, Demeter owned 100 Units of General Partnership

Interest in the Partnership representing a 2.99 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 1997

Annual Report to



Partners, incorporated by reference in this Form 10-K. In

its capacity as the Partnership's retail commodity broker,

DWR received commodity brokerage commissions (paid and

accrued by the Partnership) of $341,945 for the year ended

December 31, 1997.






































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 reports of

independent accountants, all appearing in the accompanying

1997 Annual Report to Partners, are incorporated by

reference in this Form 10-K:

- Report of Deloitte & Touche LLP, independent
auditors, for the years ended December 31, 1997,
1996 and 1995.

- Statements of Financial Condition as of
December 31, 1997 and 1996.

- Statements of Operations, Changes in
Partners' Capital, and Cash Flows for the years
ended December 31, 1997, 1996 and 1995.

- Notes to Financial Statements.

With the exception of the aforementioned information

and the information incorporated in Items 7, 8, and 13, the

1997 Annual Report to Partners 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 Page E-1.



SIGNATURES

Pursuant to the requirement 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 24, 1998 BY: /s/ Mark J. Hawley
Mark J. Hawley, 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/ Mark J. Hawley March 24,
1998
Mark J. Hawley, Director and
President

/s/ Richard M. DeMartini March 24,
1998
Richard M. DeMartini, Director
and Chairman of the Board

/s/ Lawrence Volpe March 24,
1998
Lawrence Volpe, Director


/s/ Joseph G. Siniscalchi March 24,
1998
Joseph G. Siniscalchi, Director


/s/ Edward C. Oelsner III March 24,
1998
Edward C. Oelsner III, Director


/s/ Robert E. Murray March 24,
1998
Robert E. Murray, Director


/s/ Patti L. Behnke March 24,
1998
Patti L. Behnke, Chief Financial
Officer and Principal Accounting
Officer

EXHIBIT INDEX



Item METHOD
OF FILING

- - -3. Amendment to Limited Partnership (1)
Agreement of Columbia Futures Fund,
dated as of February 14, 1985.

- - -10. Advisory Agreement among the Partnership, (2)
Demeter and JWH dated as of January
20, 1987.

- - -10. December 31, 1997 Annual Report to Limited Partners. (3)


(1)
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.

(2)
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.

(3) Filed
herewith.







Columbia
Futures
Fund


December 31, 1997
Annual Report



[LOGO OF DEAN WITTER APPEARS HERE]


DEAN WITTER
Two World Trade Center 62nd Floor
New York, NY 10048 Telephone (212) 392-8899

COLUMBIA FUTURES FUND
ANNUAL REPORT
1997

Dear Limited Partner:

This marks the fifteenth annual report for the Columbia Futures Fund (the
"Fund"). This is the thirteenth 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 $2,309.06 and increased by 22.6% to $2,830.91
on December 31, 1997. Since its inception in 1983, the Fund has increased by
188.9% (a compound annualized return of 7.6%).

During January, the Fund posted gains in currencies as a result of a
strengthening in the value of the U.S. dollar versus the Japanese yen, German
mark and Swiss franc. Additional gains were recorded from long Japanese and
French bond futures positions and from short Nikkei Index futures positions.
The Fund recorded gains during February as the value of the U.S. dollar
continued to strengthen relative to most major currencies. Additional gains
were recorded from long coffee futures positions as prices trended higher.
These gains were partially offset by losses from trading U.S. and Australian
bond futures as prices moved in a trendless pattern. During March, profits were
recorded from short positions in the Japanese yen and Singapore dollar as the
value of these currencies trended lower versus the U.S. dollar. Additional
gains were recorded from an upward price trend in corn and soybean meal
futures. A portion of these gains was offset by losses in energies from short
crude oil futures positions.

In April, the Fund recorded losses primarily from long positions in Japanese
government bond futures, as prices moved lower, and from short


positions in U.S. interest rate futures, as domestic bond prices moved sharply
higher late in the month. Smaller losses were recorded in the agricultural and
energy markets as prices moved in a short-term volatile pattern. During May,
the Fund recorded losses primarily from trading the Japanese yen as its value
moved without consistent direction. Smaller losses were recorded from short-
term volatile price movement in crude oil futures. The Fund also recorded
losses during June primarily from long positions in coffee futures as prices
moved dramatically lower. Losses were also recorded from trading crude oil
futures as oil prices continued to move without consistent direction.

During July, the Fund posted profits primarily from a strengthening in the
value of the U.S. dollar relative to most world currencies. Gains were also
recorded from long positions in global bond futures as prices moved higher
during the month. In August, gains were recorded from short positions in the
Malaysian ringgit and Singapore dollar late in the month. Smaller gains were
recorded in the soft commodities and financial futures markets. In September, a
small portion of the Fund's gains for the quarter was given back due to
trendless price movement in coffee, sugar and crude oil futures. Smaller losses
were recorded in the agricultural markets from trading corn futures. These
losses were partially offset by gains recorded from short Malaysian ringgit
positions.

The Fund recorded profits during October primarily from short positions in the
Singapore dollar and Malaysian ringgit as the values of these currencies
declined sharply relative to the U.S. dollar. Additional gains were recorded
from long positions in Japanese government bond futures as prices moved higher.
In November, the Fund recorded gains from short Japanese yen, Australian dollar
and Malaysian ringgit positions as the value of these currencies weakened
versus the U.S. dollar in response to the economic turmoil in Asia. Additional
gains were recorded in metals from long silver futures positions as prices
moved higher. During December, the Fund experienced significant gains


from short positions in the Singapore dollar, Malaysian ringgit and Australian
dollar as the values of these Pacific Rim currencies continued to decline.
Additional gains were experienced from long silver futures positions, as well
as European bond futures, as prices in these markets moved higher.

Overall, the Fund recorded strong gains in 1997 from sustained price movements
in the currency markets during January and February, and then again in the
fourth quarter from short positions in most Pacific Rim currencies as their
values declined relative to the U.S. dollar. Additional gains were also
recorded from long positions in global interest rate futures as prices in these
markets trended upward during the third quarter. These gains, coupled with John
W. Henry & Company, Inc.'s ability to limit losses during periods of short-term
price volatility and sharp trend reversals, contributed to the overall success
of the Fund during the year.

Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation at Two World Trade Center, 62nd Floor,
New York, NY 10048, or your Dean Witter Account Executive.

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/ Mark J. Hawley


Mark J. Hawley
President
Demeter Management Corporation
General Partner


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, 1997 and 1996 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, 1997. 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 generally accepted auditing
standards. 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 as of December 31,
1997 and 1996 and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1997 in conformity with
generally accepted accounting principles.

Deloitte & Touche LLP

February 17, 1998
New York, New York


COLUMBIA FUTURES FUND
STATEMENTS OF FINANCIAL CONDITION



DECEMBER 31,
-------------------
1997 1996
--------- ---------
$ $

ASSETS
Equity in Commodity futures trading accounts:
Cash 9,092,300 8,233,513
Net unrealized gain on open
contracts 611,751 365,976
--------- ---------
Total Trading Equity 9,704,051 8,599,489
Interest receivable (DWR) 33,770 28,574
--------- ---------
Total Assets 9,737,821 8,628,063
========= =========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Incentive fee payable 173,722 150,103
Administrative expenses payable 56,762 67,548
Accrued management fee 32,163 28,381
Redemptions payable 14,155 23,091
Accrued brokerage commissions (DWR) -- 16,631
Accrued transaction fees and costs -- 1,324
--------- ---------
Total Liabilities 276,802 287,078
--------- ---------
PARTNERS' CAPITAL
Limited Partners (3,242.046 and 3,512.282 Units, respec-
tively) 9,177,928 8,110,079
General Partner (100 Units) 283,091 230,906
--------- ---------
Total Partners' Capital 9,461,019 8,340,985
--------- ---------
Total Liabilities and Partners'
Capital 9,737,821 8,628,063
========= =========
NET ASSET VALUE PER UNIT 2,830.91 2,309.06
========= =========


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


COLUMBIA FUTURES FUND
STATEMENTS OF OPERATIONS



FOR THE YEARS
ENDED
DECEMBER 31,
------------------------------
1997 1996 1995
--------- --------- ---------
$ $ $

REVENUES
Trading Profit (Loss):
Realized 2,224,474 2,453,483 2,608,057
Net change in unrealized 245,775 (470,252) (197,683)
--------- --------- ---------
Total Trading Results 2,470,249 1,983,231 2,410,374
Interest income (DWR) 357,496 312,258 346,311
--------- --------- ---------
Total Revenues 2,827,745 2,295,489 2,756,685
--------- --------- ---------
EXPENSES
Management fee 344,682 302,169 306,556
Brokerage commissions (DWR) 341,945 397,597 361,179
Incentive fee 251,113 150,977 115,561
Administrative expenses 79,000 72,000 129,000
Transaction fees and costs 28,955 31,808 29,130
--------- --------- ---------
Total Expenses 1,045,695 954,551 941,426
--------- --------- ---------
NET INCOME 1,782,050 1,340,938 1,815,259
========= ========= =========
NET INCOME ALLOCATION:
Limited Partners 1,729,865 1,303,921 1,772,596
General Partner 52,185 37,017 42,663
NET INCOME PER UNIT:
Limited Partners 521.85 370.17 426.63
General Partner 521.85 370.17 426.63


STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995



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

Partners' Capital, December 31, 1994 4,351.065 6,428,721 151,226 6,579,947
Net Income -- 1,772,596 42,663 1,815,259
Redemptions (386.083) (707,536) -- (707,536)
--------- --------- ------- ---------
Partners' Capital, December 31, 1995 3,964.982 7,493,781 193,889 7,687,670
Net Income -- 1,303,921 37,017 1,340,938
Redemptions (352.700) (687,623) -- (687,623)
--------- --------- ------- ---------
Partners' Capital,
December 31, 1996 3,612.282 8,110,079 230,906 8,340,985
Net Income -- 1,729,865 52,185 1,782,050
Redemptions (270.236) (662,016) -- (662,016)
--------- --------- ------- ---------
Partners' Capital,
December 31, 1997 3,342.046 9,177,928 283,091 9,461,019
========= ========= ======= =========


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


COLUMBIA FUTURES FUND
STATEMENTS OF CASH FLOWS



FOR THE YEARS
ENDED
DECEMBER 31,
-------------------------------
1997 1996 1995
--------- --------- ---------
$ $ $

CASH FLOWS FROM OPERATING ACTIVITIES
Net income 1,782,050 1,340,938 1,815,259
Noncash item included in net income:
Net change in unrealized (245,775) 470,252 197,683
Increase in operating assets:
Interest receivable (DWR) (5,196) (1,138) (650)
Increase (decrease) in
operating liabilities:
Incentive fee payable 23,619 150,103 --
Administrative expenses payable (10,786) (29,063) 89,859
Accrued management fee 3,782 2,556 3,675
Accrued brokerage commissions (DWR) (16,631) (4,062) 1,393
Accrued transaction fees and costs (1,324) (375) 335
--------- --------- ---------
Net cash provided by operating activities 1,529,739 1,929,211 2,107,554
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (8,936) (36,549) (5,387)
Redemptions of units (662,016) (687,623) (707,536)
--------- --------- ---------
Net cash used for financing activities (670,952) (724,172) (712,923)
--------- --------- ---------
Net increase in cash 858,787 1,205,039 1,394,631
Balance at beginning of period 8,233,513 7,028,474 5,633,843
--------- --------- ---------
Balance at end of period 9,092,300 8,233,513 7,028,474
========= ========= =========


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 in the speculative trading of commodity futures
contracts, commodity options contracts and forward contracts on foreign
currencies. The general partner for the Partnership is Demeter Management
Corporation ("Demeter"). Demeter is a wholly-owned subsidiary of Morgan
Stanley, Dean Witter, Discover & Co. ("MSDWD").

On May 31, 1997, Morgan Stanley Group Inc. was merged with and into Dean
Witter, Discover & Co. ("DWD"). At that time DWD changed its corporate name to
Morgan Stanley, Dean Witter, Discover & Co.

Through July 31, 1997, the sole commodity broker for the Partnership's
transactions was Dean Witter Reynolds Inc. ("DWR"), also a subsidiary of MSDWD.
On July 31, 1997, DWR closed the sale of its institutional futures business and
foreign currency trading operations to Carr Futures, Inc. ("Carr"), a
subsidiary of Credit Agricole Indosuez. Following the sale, Carr became the
clearing commodity broker for the Partnership's futures and futures options
trades and the counterparty on the Partnership's foreign currency trades. DWR
will continue to serve as the non-clearing commodity broker for the Partnership
with Carr providing all clearing services for the Partnership's transactions.

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

BASIS OF ACCOUNTING--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts in the financial statements.

REVENUE RECOGNITION--Commodity futures contracts and forward contracts on
foreign currencies are open commitments until settlement date. They are valued
at market and the resulting unrealized gains and losses are reflected in
income. Monthly, DWR pays the Partnership interest income based upon 80% of the
average equity at a rate equal to the average yield on 13-Week U.S. Treasury
Bills issued during such month.

NET INCOME (LOSS) PER UNIT--Net income (loss) per Unit is computed using the
weighted average number of units outstanding during the period.


COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)


EQUITY IN COMMODITY FUTURES TRADING ACCOUNTS--The Partnership's asset "Equity
in Commodity futures trading accounts" consists of cash on deposit at DWR and
Carr to be used as margin for trading and the net asset or liability related to
unrealized gains or losses on open contracts. The asset or liability related to
the unrealized gains or losses on forward contracts is presented as a net
amount in each period due to master netting agreements.

BROKERAGE COMMISSIONS AND RELATED TRANSACTION FEES AND COSTS--Brokerage
commissions are accrued at 80% of DWR's published non-member rates on a half-
turn basis. Transaction fees and costs are accrued on a half-turn basis.

Through March 31, 1995, brokerage commissions were capped at 1% per month of
the adjusted Net Assets allocated to each trading program employed by the
Trading Manager.

From April 1, 1995 through August 31, 1996, the caps for brokerage commissions
were reduced to 3/4 of 1%.

As of September 1, 1996, brokerage commissions and transaction fees chargeable
to the Partnership are capped at 13/20 of 1% per month of the Partnership's
month-end Net Assets (as defined in the Limited Partnership Agreement).

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.

DISTRIBUTIONS--Distributions, other than on 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 their Units as of the end of any
calendar month upon ten days advance notice by redemption form to Demeter.


COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)


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 DWR on trades executed on its
behalf as described in Note 1. The Partnership's cash is on deposit with DWR
and Carr in commodity trading accounts to meet margin requirements as needed.
DWR 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, 1997, 1996 and 1995 Demeter received $11,979,
$13,101 and $14,483, 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 manager consists of a management fee and an
incentive fee as follows:

MANAGEMENT FEE--The management fee is accrued daily at the rate of 1/3 of 1%
per month 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 assessed each Unit
equal to 15 percent of the excess 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, if any, during
each fiscal quarter will be reduced.

4. FINANCIAL INSTRUMENTS

The Partnership trades futures and forward contracts in interest rates, stock
indices, commodities, currencies, petroleum, and precious metals. 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


COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

value of these contracts, including interest rate volatility. At December 31,
1997 and 1996 open contracts were:



CONTRACT OR NOTIONAL AMOUNT
----------------------------
1997 1996
-------------- -------------
$ $

EXCHANGE-TRADED CONTRACTS
Financial Futures:
Commitments to Purchase 8,412,000 5,890,000
Commitments to Sell 3,094,000 5,281,000
Commodity Futures:
Commitments to Purchase 1,948,000 1,723,000
Commitments to Sell 3,352,000 5,004,000
Foreign Futures:
Commitments to Purchase 3,862,000 3,327,000
Commitments to Sell 4,056,000 4,040,000
OFF-EXCHANGE-TRADED FORWARD
CURRENCY CONTRACTS
Commitments to Purchase 6,966,000 9,367,000
Commitments to Sell 20,155,000 6,091,000


A portion of the amounts indicated as off-balance-sheet risk in forward
currency contracts is due to offsetting forward commitments to purchase and to
sell the same currency on the same date in the future. These commitments are
economically offsetting, but are not offset in the forward market until the
settlement date.

The net unrealized gain on open contracts is reported as a component of "Equity
in Commodity futures trading accounts" on the Statements of Financial Condition
and totaled $611,751 and $365,976 at December 31, 1997 and 1996, respectively.

Of the $611,751 net unrealized gain on open contracts at December 31, 1997,
$424,057 related to exchange-traded futures contracts and $187,694 related to
off-exchange-traded forward currency contracts.

Of the $365,976 net unrealized gain on open contracts at December 31, 1996,
$381,231 related to exchange-traded futures contracts and $(15,255) related to
off-exchange-traded forward currency contracts.

Exchange-traded futures contracts held by the Partnership at December 31, 1997
and 1996 mature through December 1998 and September 1997, respectively. Off-
exchange-traded forward currency contracts held by the Partnership at December
31, 1997 and 1996 mature through March 1998 and March 1997, respectively.

The contract amounts in the above table represent the Partnership's extent of
involvement in the particular class of financial instrument, but not the credit
risk


COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

associated with counterparty nonperformance. The credit risk associated with
these instruments is limited to the amounts reflected in the Partnership's
Statements of Financial Condition.

The Partnership also has credit risk because either DWR or Carr acts as the
futures commission merchant or the counterparty, 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. DWR and
Carr, as the futures commission merchants 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 with respect to exchange-
traded futures contracts including an amount equal to the net unrealized gain
on all open futures contracts, which funds totaled $9,516,357 and $8,614,744 at
December 31, 1997 and 1996, 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 gain 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 Carr, the sole counterparty on all of such contracts, to
perform. Carr's parent, Credit Agricole Indosuez, has guaranteed Carr's
obligations to the Partnership.

For the years ended December 31, 1997 and 1996, the average fair value of
financial instruments held for trading purposes was as follows:



1997
----------------------
ASSETS LIABILITIES
---------- -----------
$ $
EXCHANGE-TRADED CONTRACTS:

Financial Futures 7,750,000 6,950,000
Commodity Futures 4,075,000 3,836,000
Foreign Futures 5,415,000 2,274,000
OFF-EXCHANGE-TRADED FORWARD CURRENCY CONTRACTS 14,901,000 19,757,000

1996
----------------------
ASSETS LIABILITIES
---------- -----------
$ $
EXCHANGE-TRADED CONTRACTS:

Financial Futures 7,988,000 9,207,000
Commodity Futures 6,451,000 5,433,000
Foreign Futures 8,788,000 3,870,000
OFF-EXCHANGE-TRADED FORWARD CURRENCY CONTRACTS 13,160,000 15,230,000



COLUMBIA FUTURES FUND
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)


5. LEGAL MATTERS

On September 6, 10, and 20, 1996, and on March 13, 1997, similar purported
class actions were filed in the Superior Court of the State of California,
County of Los Angeles, on behalf of all purchasers of interests in limited
partnership commodity pools sold by DWR. Named defendants include DWR, Demeter,
Dean Witter Futures & Currency Management Inc., MSDWD (all such parties
referred to hereafter as the "Dean Witter Parties"), certain limited
partnership commodity pools of which Demeter is the general partner, and
certain trading advisors (including JWH) to those pools. On June 16, 1997, the
plaintiffs in the above actions filed a consolidated amended complaint,
alleging, among other things, that the defendants committed fraud, deceit,
negligent misrepresentation, various violations of the California Corporations
Code, intentional and negligent breach of fiduciary duty, fraudulent and unfair
business practices, unjust enrichment, and conversion in the sale and operation
of the various limited partnerships commodity pools. Similar purported class
actions were also filed on September 18 and 20, 1996, in the Supreme Court of
the State of New York, New York County, and on November 14, 1996 in the
Superior Court of the State of Delaware, New Castle County, against the Dean
Witter Parties and certain trading advisors (including JWH) on behalf of all
purchasers of interests in various limited partnership commodity pools sold by
DWR. A consolidated and amended complaint in the action pending in the Supreme
Court of the State of New York was filed on August 13, 1997, alleging that the
defendants committed fraud, breach of fiduciary duty, and negligent
misrepresentation in the sale and operation of the various limited partnership
commodity pools. On December 16, 1997, upon motion of the plaintiffs, the
action pending in the Superior Court of the State of Delaware was voluntarily
dismissed without prejudice. The complaints seek unspecified amounts of
compensatory and punitive damages and other relief. It is possible that
additional similar actions may be filed and that, in the course of these
actions, other parties could be added as defendants. The Dean Witter Parties
believe that they have strong defenses to, and they will vigorously contest,
the actions. Although the ultimate outcome of legal proceedings cannot be
predicted with certainty, it is the opinion of management of the Dean Witter
Parties that the resolution of the actions will not have a material adverse
effect on the financial condition or the results of operations of any of the
Dean Witter Parties.


DEAN WITTER REYNOLDS INC.
Two World Trade Center
62nd Floor
New York, NY 10048


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