UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2004
Commission File Number: 0-17443

IDS MANAGED FUTURES II, L.P.
(Exact name of registrant as specified in its charter)

Delaware	06-1207252
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

233 South Wacker Drive
Suite 2300
Chicago, IL 60606
(Address of principal executive offices) (Zip Code)

(312) 460-4000
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report.)

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

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 or the Exchange Act). |_| Yes |X| No

The number of units outstanding, as of March 31, 2004, is 8,693.62.

TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION

	Item 1. Financial Statements
		Statements of Financial Condition (unaudited)
		Statements of Operations (unaudited)
		Statement of Changes in Unitholders’ Capital (unaudited)
		Notes to Financial Statements
		Condensed Schedule of Investments (unaudited)
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosures About Market Risk
	Item 4. Controls and Procedures


Part II. OTHER INFORMATION

	Item 1. Legal Proceedings
	Item 2. Changes in Securities and Use of Proceeds
	Item 3. Defaults Upon Senior Securities
	Item 4. Submission of Matters to a Vote of Security Holders
	Item 5. Other Information
	Item 6. Exhibits and Reports on Form 8-K

	SIGNATURES

EXHIBIT 31.01 - Certifications of Principal Executive Officer
EXHIBIT 31.02 - Certifications of Principal Financial Officer
EXHIBIT 32 - Section 1350 Certification

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Following are Financial Statements for the fiscal quarter ended March 31, 2004 and the additional time frames as noted:

	Fiscal Quarter Ended 03/31/04	Year to Date Ended 03/31/04	Fiscal Year Ended 12/31/03	Fiscal Quarter Ended 03/31/03	Year to Date Ended 03/31/03

Statements of Financial Condition	X		X

Statements of Operations	X	X		X	X

Statements of Changes in Partners' Capital		X

Notes to Financial Statements	X

IDS MANAGED FUTURES II, L.P.
STATEMENTS OF FINANCIAL CONDITION

		Mar. 31, 2004		Dec. 31, 2003
		(unaudited)
Assets
Assets:
Equity in commodity futures trading accounts:
Cash on deposit with Brokers	$	5,053,207	$	4,770,784
Unrealized (loss) gain on open contracts		(65,295)		272,081
Investment in other commodity pools		2,454,179		2,325,047

		7,442,091		7,367,912

Interest Receivable		3,405		2,827
Redemptions receivable from other commodity pools		67,382		43,163

Total assets		7,512,878		7,413,902

Liabilities and Partners' Capital
Liabilities:
Accrued commissions		9,049		6,045
Accrued exchange, clearing and NFA fees		70		74
Accrued management fees		8,281		8,373
Accrued incentive fees		11,915		187
Accrued operating expenses		27,694		32,000
Accrued General Partner fees		473		188
Redemptions payable		133,620		85,731

Total liabilities		191,102		132,598

Partners' Capital:
Limited partners (8,317.05 units outstanding at March 31, 2004, and 8,680.82 units outstanding at December 31, 2003)		7,004,629		6,978,577
General partners (376.57 units outstanding at March 31, 2004 and December 31, 2003)		317,147		302,727

Total parters' capital		7,321,776		7,281,304

Total liabilities and partners' capital	$	7,512,878	$	7,413,902

Net asset value per outstanding unit of parternship interest	$	842.20	$	803.91

See accompanying notes to financial statements.

IDS MANAGED FUTURES II, L.P.
STATEMENTS OF OPERATIONS
(unaudited)

		Jan. 1, 2004 through Mar. 31, 2004		Jan. 1, 2004 through Mar. 31, 2004		Jan. 1, 2003 through Mar. 31, 2003		Jan. 1, 2003 through Mar. 31, 2003
Revenues:
Gain (loss) on trading of:
Realized gain on closed positions	$	484,180	$	484,180	$	1,187,587	$	1,187,587
Change in unrealized loss on open contracts		(337,378)		(337,378)		(529,808)		(529,808)
Interest income		9,338		9,338		11,031		11,031
Income from investment in other commodity pools		291,341		291,341		187,108		187,108
Foreign currency transaction gain		2,227		2,227		3,040		3,040

Total revenues		449,708		449,708		858,958		858,958

Expenses:
Commissions		51,630		51,630		45,528		45,528
Exchange, clearing and NFA fees		283		283		230		230
Management fees		25,815		25,815		25,609		25,609
Incentive fees		13,460		13,460		62,067		62,067
Administrative fee		1,689		1,689		2,026		2,026
Operating expenses		8,000		8,000		8,000		8,000

Total expenses		100,877		100,877		143,460		143,460

Net income	$	348,831	$	348,831	$	715,498	$	715,498

PROFIT PER UNIT OF PARTNERSHIP INTEREST	$	38.29	$	38.29	$	72.14	$	72.14

See accompanying notes to financial statements.

IDS MANAGED FUTURES II, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
From January 1, 2004 through March 31, 2004
(unaudited)

	Units*		Limited Partners		General Partners		Total

Partners' capital at January 1, 2004	8,680.82	$	6,978,577	$	302,727	$	7,281,304

Net profit			334,411		14,420		348,831

Redemptions	(363.77)		(308,359)		0		(308,359)

Partners' capital at March 31, 2004	8,317.05	$	7,004,629	$	317,147	$	7,321,776

Net asset value per unit January 1, 2004			803.91		803.91

Net profit per unit			38.29		38.29

Net asset value per unit March 31, 2004		$	842.20	$	842.20

* Units of limited partnership interest.

See accompanying notes to financial statements.

IDS MANAGED FUTURES II, L.P.
NOTES TO FINANCIAL STATEMENTS

March 31, 2004

(1) General Information and Summary

IDS Managed Futures II, L.P. (the Partnership), a limited partnership organized in April 1987 under the Delaware Revised Uniform Limited Partnership Act, was formed to engage in the speculative trading of commodity interests including futures contracts, forward contracts, physical commodities, and related options thereon pursuant to the trading instructions of independent trading advisors. The general partners are IDS Futures Corporation (IDSFC) and CIS Investments, Inc. (CISI) (collectively, the General Partners). The clearing broker is Cargill Investor Services, Inc. (Clearing Broker or CIS), the parent company of CISI. The broker for forward contracts is CIS Financial Services, Inc. (CISFS or Forwards Currency Broker), an affiliate of CISI. The Clearing Broker and the Forwards Currency Broker will collectively be referred to as the Brokers.

The Partnership shall be terminated on December 31, 2007 if none of the following occur prior to that date: (1) investors holding more than 50% of the outstanding units notify the General Partners to dissolve the Partnership as of a specific date; (2) disassociation of the General Partners with the Partnership; (3) bankruptcy of the Partnership; (4) decrease in the net asset value (NAV) to less than $1,500,000; (5) the Partnership is declared unlawful; or (6) the NAV per unit declines to less than $125 per unit and the Partners elect to terminate the Partnership.

(2) Summary of Significant Accounting Policies

The accounting and reporting policies of the Partnership conform to accounting principles generally accepted in the United States of America and to general practices within the commodities industry. The following is a description of the more significant of those policies that the Partnership follows in preparing its financial statements.

Revenue Recognition

Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gain on open futures contracts reflected in the statements of financial condition represents the difference between original contract amount and market value (as determined by exchange settlement prices for futures contracts) as of the last business day of the year or as of the last date of the financial statements.

The Partnership earns interest on 100% of the Partnership’s average monthly cash balance on deposit with the Brokers at a rate equal to 80% of the average 91-day Treasury bill rate for U.S. Treasury bills issued during that month.

Redemptions

A Limited Partner may cause any or all of his or her units to be redeemed by the Partnership effective as of the last trading day of any month. Redemptions are based on the NAV per unit as of the last day of the month and require ten days’ written notice to the General Partners. Payment will be made within ten business days of the effective date of the redemption. The Partnership’s Limited Partnership Agreement contains a full description of redemption and distribution procedures.

Commissions

Brokerage commissions and National Futures Association (NFA) clearing and exchange fees are accrued on a half-turn basis on open commodity futures contracts. The Partnership pays CIS commissions on trades executed on its behalf at a rate of $29.375 per half-turn contract. The Partnership pays these commissions directly to CIS and CISFS, and CIS then reallocates the appropriate portion to American Express Financial Advisors, Inc. (AEFA).

Foreign Currency Transactions

Trading accounts in foreign currency denominations are susceptible to both movements in the underlying contract markets as well as fluctuations in currency rates. Foreign currencies are translated into U.S. dollars for closed positions at an average exchange rate for the period, while period-end balances are translated at the period-end currency rates. The impact of the translation is reflected in the statements of operations.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(3) Fees

Management fees are accrued and paid monthly and incentive fees are accrued monthly and paid quarterly. Trading decisions for the period of these financial statements were made by John W. Henry & Company, Inc. (JWH).

Under signed agreement, JWH receives a monthly management fee of 0.166% of 2% of the month-end NAV of the Partnership under its management and an incentive fee of 20% of the Partnership’s new trading profits, if any, attributable to its management. For the periods ending March 31, 2004 and 2003, JWH was managing approximately 67% of the Partnership’s assets while Sunrise Capital Partners, LLC was indirectly managing 33% of the Partnership’s assets.

(4) Income Taxes

No provision for Federal income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based on such partner’s pro rata share of the profits or losses of the Partnership. The Partnership is responsible for the Illinois State Partnership Information and Replacement Tax based on the operating results of the Partnership. Such tax amounted to $0 for the quarters ended March 31, 2004 and 2003 and is included in operating expenses in the statements of operations.

(5) Trading Activities and Related Risks

The Partnership’s investment in other commodity pools are recorded at fair value and are subject to the market and credit risks of financial instruments and commodity contracts held or sold short by those entities. The Partnership bears the risk of loss only to the extent of the market value of its respective investments.

The Partnership engages in the speculative trading of U.S. and foreign futures contracts, options on U.S. and foreign futures contracts, and forward contracts (collectively derivatives). These derivatives include both financial and non-financial contracts held as part of a diversified trading strategy. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

The purchase and sale of futures contracts and options on futures contracts requires margin deposits with a Futures Commission Merchant (FCM). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act (CE Act) requires a FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other property, such as U.S. Treasury bills, deposited with a FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of a FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited.

The Partnership has cash on deposit with an affiliated interbank market maker in connection with its trading of forward contracts. In the event of the interbank market maker’s insolvency, recovery of the Partnership assets on deposit may be limited to account insurance or other protection afforded such deposits. In the normal course of business, the Partnership does not require collateral from such interbank market maker. Because forward contracts are traded in unregulated markets between principals, the Partnership also assumes a credit risk.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short. As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option.

The notional amounts of open contracts at March 31, 2004, as disclosed in the Condensed Schedule of Investments, do not represent the Partnership’s risk of loss due to market and credit risk, but rather represent the extent of the Partnership’s involvement in derivatives at the date of the statements of financial condition.

Net trading results from derivatives for the quarter ended March 31, 2004 and 2003, are reflected in the statements of operations and equal gains (losses) from trading less brokerage commissions. Such trading results reflect the net gain arising from the Partnership’s speculative trading of futures contracts, options on futures contracts, and forward contracts.

The Limited Partners bear the risk of loss only to the extent of the market value of their respective investments.

(6) Investments in Other Commodity Pools

In December 2001, the Partnership invested in another commodity pool, IDS Managed Fund LLC (IDSMF). The investment is subject to the terms of the respective advisory contract and other agreements of this commodity pool.

Income (loss) is net of the Partnership’s proportionate share of fees and expenses incurred or charged by IDSMF. During 2004, IDSMF charged monthly management fees of 1/12 of 2% of the NAV and a quarterly incentive fee of 20% of new trading profits.

Investment value in IDSMF is based on the proportionate share of units the Partnership has in IDSMF at the end of each month. The Partnership’s risk of loss in its investee pool is limited to its investment. The Partnership may make additional contributions to or withdrawals from its investment in IDSMF as of the last day of any month.

Summarized information reflecting the Partnership’s investment in, and the operations of, the investee pool is as shown in the following table.

Investment in IDSMF, January 1, 2004	$	2,325,047
Results of operations of IDSMF:
Revenues		1,740,605
Management and incentive fees		(380,076)
Other expenses		(46,852)

Net income before allocation to members		1,313,677
Special allocation to the other members		1,022,336

Partnership's income from investment in IDSMF		291,341

Partnership's redemptions in IDSMF		(162,209)

Net asset value of the Partnership's investment in IDSMF, March 31, 2004		2,454,179

The following table is a summary of IDSMF’s net assets, at March 31, 2004.

	Number of contracts		Principal/ notional value		Value/open trade equity
Long positions
Futures positions (7.52%)
Agriculture	87		2,050,205		233,438
Energy	74		2,646,240		(28,580)
Interest rates	158	$	19,578,962		241,238
Metals	104		4,134,776		340,616
Indices	28		2,504,333		45,094

			30,914,516		831,806
Forward positions (1.29%)
Currencies	24		7,914,980		142,346

Total long positions		$	38,829,496		974,152


Short positions
Futures positions (0.06%)
Agriculture	15	$	465,750		21,830
Metals	22		745,131		(14,878)

			1,210,881		6,952

Forward positions (-1.59%)
Currencies	11		5,028,138		(175,762)

Total short positions		$	6,239,019		(168,810)

Total open contracts (7.28%)				$	805,342
Cash on deposit with brokers (98.73%)					10,921,106
Other assets in excess of liabilities (-6.01%)					(664,652)

Net assets (100%)				$	11,061,796

(7) Financial Highlights

The following financial highlights show the Partnership’s financial performance for the three-month period ended March 31, 2004. Total return is calculated as the change in a theoretical limited partner’s investment over the entire period and is not annualized. Total return is calculated based on the aggregate return of the Partnership taken as a whole.

Total Return:
Total return before incentive fees		4.89%
Less incentive fee allocation		0.13%
Total Return		4.76%

Ratio to average net assets:
Net income		4.70%

Expenses:
Expenses		1.18%
Incentive fees		0.18%

Total expenses		1.36%

The net income and expense ratios are computed based upon the weighted average net assets for the Partnership for the three-month period ended March 31, 2004. Ratios do not reflect income or expenses related to investment in other commodity pools.

IDS MANAGED FUTURES II, L.P.
Condensed Schedule of Investments
March 31, 2004
(unaudited)

	Number of contracts		Principal (notional)		Value (OTE)
Long positions
Futures positions (3.11%)
Interest rates	215	$	32,501,755	$	166,243
Metals	32		1,535,940		30,245
Indices	9		1,014,989		31,045

			35,052,684		227,533

Forward positions (3.55%)
Currencies	26	$	13,650,359	$	259,850

Total long positions		$	46,703,043	$	487,383

Short positions
Futures positions (-0.56%)
Interest Rates	2	$	2,635,926	$	(8,911)
Metals	7		302,138		(12,863)
Indices	40		1,272,616		(18,899)

			4,210,680		(40,673)

Forward positions (-6.99%)
Currencies	19		14,102,217		(512,006)

Total short positions		$	18,312,897	$	(552,679)

Total open contracts (-0.89%)				$	(65,295)
Cash on deposit with brokers (69.02%)					5,053,207
Investment in other commodity pools (33.52%)					2,454,179
Other assets in excess of liabilities (-1.65%)					(120,315)

Net assets (100%)				$	7,321,776

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(a) Capital Resources

The Partnership’s capital resources fluctuate based upon the redemption of units and the gains and losses of the Partnership’s trading activities. For the period-ended March 31, 2004, Limited Partners redeemed a total of 363.77 units for $308,358.95 and for the period-ended March 31, 2003, Limited Partners redeemed a total of 184.55 units for $142,115.

The Partnership’s involvement in the futures and forward markets exposes the Partnership to both market risk – the risk arising from changes in the market value of the futures and forward contracts held by the Partnership – and credit risk – the risk that another party to a contract will fail to perform its obligations according to the terms of the contract. The Partnership is exposed to a market risk equal to the value of the futures and forward contracts purchased and theoretically unlimited risk of loss on contracts sold short. The Partnerships commodity trading advisors (Advisors) monitor the Partnership’s trading activities and attempt to control the Partnership’s exposure to market risk by, among other things, refining their trading strategies, adjusting position sizes of the Partnership’s futures and forward contacts and re-allocating Partnership assets to different market sectors. The Partnership’s primary exposure to credit risk is its exposure to the non-performance of the Forwards Currency Broker. The Forwards Currency Broker generally enters into forward contracts with large, well-capitalized institutions and then enters into a back-to-back contract with the Partnership. The Partnership also may trade on exchanges that do not have associated clearing houses whose credit supports the obligations of its members and operate as principals markets, in which case the Partnership will be exposed to the credit risk of the other party to such trades.

The Partnership’s trading activities involve varying degrees of off-balance sheet risk whereby changes in the market values of the futures and forward contracts underlying the financial instruments or the Partnership’s satisfaction of the obligations may exceed the amount recognized in the statement of financial condition of the Partnership.

The Partnership borrows only to a limited extent and only on a strictly short-term basis in order to finance losses on non-U.S. dollar denominated trading positions pending the conversion of the Partnership’s dollar deposits. These borrowings are at a prevailing short-term rate in the relevant currency. They have been immaterial to the Partnership’s operation to date and are expected to continue to be so.

During the fiscal period-ended March 31, 2004, the Partnership had no credit exposure to a counterparty which is a foreign commodities exchange which was material.

(b) Liquidity

The Partnership’s net assets are held in brokerage accounts with CIS and CISFS. Except in very unusual circumstances, the Partnership should be able to close out any or all of its open trading positions and liquidate any or all of its securities holdings quickly and at market prices. This should permit the Advisors to limit losses as well as reduce market exposure on short notice should their programs indicate reducing market exposure.

The Partnership earned interest on 100% of the Partnership’s average monthly cash balance at a rate equal to 80% of the average yield on the 91-day U.S. Treasury bills issued during that month. For the period ended March 31, 2004, CIS had paid or accrued to pay interest of $9,338 to the Partnership and for the period ended March 31, 2003, CIS had paid or accrued to pay interest of $11,031 to the Partnership.

Most United States commodity exchanges limit the amount of fluctuation in commodity futures contract prices during a single trading day by regulations. These regulations specify what are referred to as “daily price fluctuation limits” or “daily limits”. The daily limits establish the maximum amount the price of a futures contract may vary either up or down from the previous day’s settlement price at the end of a trading session. Once the daily limit has been reached in a particular commodity, no trades may be made at a price beyond the limit. Positions in the commodity could then be taken or liquidated only if traders are willing to effect trades at or within the limit during the period for trading on such day. Because the “daily limit” rule only governs price movement for a particular trading day, it does not limit losses. In the past, futures prices have moved the daily limit for numerous consecutive trading days and thereby prevented prompt liquidation of futures positions on one side of the market, subjecting commodity futures traders holding such positions to substantial losses for those days.

It is also possible for an exchange or the CFTC to suspend trading in a particular contract, order immediate settlement of a particular contract, or direct that trading in a particular contract be for liquidation only.

(c) Results of Operations

The Partnership’s success depends on the Advisors’ ability to recognize and capitalize on major price movements and other profit opportunities in different sectors of the world economy. Because of the speculative nature of their trading, operational or economic trends have little relevance to the Partnership’s results, and its past performance is not necessarily indicative of its future results. The General Partners believe, however, that there are certain market conditions — for example, markets with major price movements — in which the Partnership has a better opportunity of being profitable than in others.

The Advisors’ programs do not predict price movements. No fundamental economic supply or demand analysis is used in attempting to identify mispricings in the market, and no macroeconomic assessments of the relative strengths of different national economies or economic sectors is made. Instead, the programs apply proprietary computer models to analyze past market data, and from this data alone attempt to determine whether market prices are trending. Technical traders such as the Advisors base their strategies on the theory that market prices reflect the collective judgment of numerous different traders and are, accordingly, the best and most efficient indication of market movements. However, there are frequent periods during which fundamental factors external to the market dominate prices.

If the Advisors’ models identify a trend, they signal positions which follow it. When these models identify the trend as having ended or reversed, these positions are either closed out or reversed. Due to their trend-following character, the Advisors programs do not predict either the commencement or the end of a price movement. Rather, their objective is to identify a trend early enough to profit from it and to detect its end or reversal in time to close out the Partnership’s positions while retaining most of the profits made from following the trend.

The performance summaries set forth below outline certain major price trends which the Advisors’ programs have identified for the Partnership during the first quarter of fiscal years 2004 and 2003. The fact that certain trends were captured does not imply that others, perhaps larger and potentially more profitable trends, were not missed or that the Advisors will be able to capture similar trends in the future. Moreover, the fact that the programs were profitable in certain market sectors in the past does not mean that they will be so in the future.

The performance summaries are an outline description of how the Partnership performed in the past, not necessarily any indication of how it will perform in the future. Furthermore, the general causes to which certain trends are attributed may or may not in fact have caused such trends, as opposed to simply having occurred at about the same time. While there can be no assurance that the Advisors will be profitable even in trending markets, markets in which substantial and sustained price movements occur offer the best profit potential for the Partnership.

Fiscal Quarter ended March 31, 2004

The Partnership recorded a profit of $348,831 or $38.29 per unit for the first quarter of 2004. Performance throughout the quarter was strong. On March 31, 2004, JWH was managing 67% of the Partnership’s assets while Sunrise Capital Partners, LLC was managing 33% of the Partnership’s assets.

Although the markets were volatile, the Partnership was positive in January with many of the long-term trends remaining intact during the month. The declining U.S. dollar continued against most major currencies during the first half of the month. Following comments made both by the Federal Reserve Board regarding possible interest rate increases and the European Central Bank alluding to possible intervention in the currency markets, the U.S. dollar strengthened significantly against most currencies. The long Japanese yen and British pound positions made the greatest contribution to profits. This sector was the best performer during January.

Base metals continued to perform well as prices escalated due to the strong demand from China. Copper, aluminum and silver were profitable.

Because of an unusually high level of weather-related demand, tight U.S. inventories, and OPEC agreeing to cut production, crude oil was one of the most profitable markets in February. The fixed income sector was also a top performer. Interest rates continued to move lower in the U.S., Europe, and Asia as inflation remained low in all three regions. The most profitable positions were Euro bunds, Japanese 10-year bond, and the U.S. 10-year notes and 30-year bonds

Despite a high level of volatility, the currency sector was also profitable for the month. The U.S. dollar began to make an upside breakout due to speculation that the Federal Reserve would raise interest rates if the U.S. economy continues to improve. The best performing positions were: Euro/Pound cross, long positions in British pounds versus Yen, the Euro and the Swiss franc.

The metals sector also contributed to profitability with copper leading the way followed by silver and aluminum. All were driven by strong demand, dollar weakness and declining inventories.

The supply situation was favorable for grains as well with unusually tight inventories sending corn and bean prices to new contract highs.

March was a particularly challenging month. Terrorist activities in Spain and heightened tensions in the Middle East kept those looking for investment opportunities on the sideline. The agricultural sector was the best performer for the month led by grains, whose prices rose based on a surge in export demand, followed by a drop in cotton prices based on USDA reports that sales are slowing.

In precious metals both gold and silver extended their gains as demand continued to rise and despite the U.S. dollar strengthening. Silver was the best performer overall, reaching a 17 year high of $8.30 an ounce. Base metals experienced a period of consolidation and remained within a road and volatile trading range as the market weighed information that China’s appetite may be waning.

Geopolitical risk and OPEC’s production cut helped crude oil and related products retain lofty price levels. Natural gas had the highest gain for the sector followed by crude oil.

The unprofitable currency sector was dominated by the action in the Japanese yen, orchestrated by the Bank of Japan which intervened in the foreign exchange market by buying over $40 billion U.S. dollars/selling Japanese yen. Most other currencies traded in a sideways fashion in varying degrees of volatility

During the quarter, investors redeemed a total of 363.77 units. At the end of the quarter there were 8,693.62 units outstanding (including 376.57 units owned by the General Partners).

During the fiscal quarter ended March 31, 2004 the Partnership had no material credit exposure to a counterparty which is a foreign commodities exchange.

Fiscal Quarter ended March 31, 2003

The Partnership recorded a net profit of $715,498 or $72.14 per unit in the first quarter of 2003. As of March 31, the Partnership has gained 10.62% for the first quarter.

In January, the currency sector supplied most of the month’s gain. Non-Dollar trading had the largest effect on performance. The Partnership’s long Euro, short Yen position was the most profitable position in this sector capitalizing on the very slow growth rate of Japan. Additional gains were made in the long U.S. dollar, short Yen position as well as the Swiss franc. The steady slowing of the world’s economies fueled the decline of worldwide interest rates. Positions denominated in Euro and Yen were the most profitable. Gains were also posted in the British and U.S. markets. The energy portfolio of the Partnership was positive despite a small allocation to this sector. The uncertainty of the Middle East cast a dark shadow over all markets. The remainder of the market sectors traded had little impact on performance. Overall, the Partnership recorded a gain of $728,379 or $73.78 per unit in January.

The Partnership continued its positive performance in February. The impending war with Iraq, slowing global economies, a weaker U.S. dollar and higher energy prices became a recurring theme in the quarter. The currency sector was unchanged in February. The long Euro, short British pound position had the best return of the sector. The Australian dollar and the Swiss franc also performed well. The Japanese yen and the British pound suffered the largest losses due to the sharp reversal from January’s rally. All geographic components of the interest rate sector posted positive results as money market and bond yields worldwide continued to move lower. Notable returns were achieved in the Euro Bund, the U.S. 30-year and 10-year bonds and the Japanese Government bond. The energy sector was the second-best performing sector for the month. The highest returns came from London gas oil and NYMEX natural gas. Gold prices dropped $40 after the German Bundesbank announced that it had sold a portion of its gold reserves. This was the primary reason for negative performance from this sector. Overall, the Partnership recorded a gain of $329,539 or $33.59 per unit in February.

The Partnership closed lower in March as the war in Iraq created volatile moves in the world’s financial and commodity markets. Nearly all markets traded in the interest rate sector were negative as a whipsaw action in the U.S. dollar and interest rates led to losses. This was due to disappointing news in the progress of the war in Iraq. The nearly 35% rise in crude oil since mid-December was erased in just over one week’s time immediately before the start of the war. This caused negative performance in the energy sector. The metal and agricultural sectors had little impact on performance. The stock index sector was the only positive performer for the month. The Partnership recorded a loss of $342,420 or $35.23 per unit in March.

In early March, out of concern for heightened volatility in global markets, JWH reduced the Partnership’s exposure to all markets traded but continued to follow its disciplined trading approach.

During the quarter, investors redeemed a total of 184.54 units. At the end of the quarter there were 9,687.24 units outstanding (including 376.57 units owned by the General Partners).

During the fiscal quarter ended March 31, 2003, the Partnership had no material credit exposure to a counterparty which is a foreign commodities exchange.

(d) Off-Balance-Sheet Arrangements; Disclosure of Contractual Obligations

There have been no material changes with respect to the Partnership’s off-balance-sheet arrangements (as defined in Regulation S-K 303(a)(4)(ii)) or disclosures of contractual obligations as reported in the Partnership’s Annual Report on Form 10-K for fiscal year 2003.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material change with respect to market risk since the “Quantitative and Qualitative Disclosures About Market Risk” was made in the Form 10-K of the Partnership dated December 31, 2003.

Item 4. Controls and Procedures

Under the supervision and with the participation of the management of CIS Investments, Inc., a General Partner of the Partnership, including CISI’s Chief Executive Officer and Chief Financial Officer, the Partnership has evaluated the effectiveness of the design and operation of its disclosure controls and procedures as of the filing date of this quarterly report, and, based on their evaluation, the Chief Executive Officer and Chief Financial Officer of CISI’s have concluded that these disclosure controls and procedures are effective. There were no significant changes in the Partnership’s internal controls over financial reporting or in other factors that could materially affect these controls subsequent to the date of their evaluation.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Partnership and its affiliates are from time to time parties to various legal actions arising in the normal course of business. The General Partners believe that there is no proceeding threatened or pending against the Partnership or any of its affiliates which, if determined adversely, would have a material adverse effect on the financial condition or results of operations of the Partnership.

Item 2. Changes in Securities and Use of Proceeds

a) None

b) None

c) None

d) None

e) The Partnership permits Limited Partners to redeem units at the end of each month at the Net Asset Value per unit on the redemption date. The redemption of univest has no impact on the net asset value of the units that remain outstanding and units may not be reissued once they are redeemed.

The following table summarizes the redemptions by unitholders during the first quarter of 2004:

Month	Units Redeemed	Redemption Date NAV per Unit
January	76.34	816.35
February	128.77	872.98
March	158.66	842.20
Total	363.77

Item 3. Defaults Upon Senior Securities

None

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