INTL FCStone 2005 Annual Report Download - page 57

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INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements—(Continued)
September 30, 2005 and 2004
INTL Consilium, LLC
Condensed Balance Sheet
September 30, 2005 and 2004
(Unaudited)
2005 2004
Assets
Cash .................................................................. $ 213,863 $340,691
Management and investment advisory fees receivable ........................... 574,019 64,794
Investment in INTL Consilium sponsored fund ................................. 297,193 103,778
Property and equipment, net ................................................ 27,166 6,711
Other assets ............................................................ 33,437 5,006
Total assets ................................................. $1,145,678 $520,980
Liabilities and Members’ Equity
Liabilities
Accounts payable .................................................... $ 34,955 $ —
Accrued compensation and benefits ...................................... 158,109 2,665
Total liabilities .............................................. 193,064 2,665
Members’ equity: ........................................................ 952,614 518,315
Total liabilities and members’ equity ................................. $1,145,678 $520,980
(5) Investment in INTL Consilium Sponsored Fund
Investment in INTL Consilium Sponsored Fund consists of the Company’s investment, through a Delaware
limited liability company feeder fund, in a Cayman Islands master hedge fund managed by INTL Consilium. The
Cayman Islands fund primarily invests in emerging market debt securities. The investment manager of the
Cayman Islands fund is INTL Consilium. The Company owns a 50.1% interest in INTL Consilium (see note 4).
The Cayman Islands master hedge fund has two feeder funds: 1) an offshore Cayman Islands limited company
(‘the offshore feeder fund’) and 2) a domestic Delaware limited liability company (‘the domestic feeder fund’).
The Company invested $3,000,000 in the Cayman Islands fund in July 2004. The investment is carried at
the net asset valuation of the Company’s interest in the fund, as reported by the Fund’s administrator. Changes in
the net asset value are included in ‘Net dealer inventory and investment gains’ in the Consolidated Statements of
Operations. Investment withdrawals require ninety days’ written notice to INTL Consilium as well as additional
limitations on the amount of withdrawal. INTL Consilium may waive the withdrawal limitations in its sole
discretion.
Refer to note 1(k) regarding consolidation of a VIE in the offshore fund for the quarters ended
December 31, 2004, March 31, 2005 and June 30, 2005.
(6) Acquisition of the Foreign Exchange Business of Global Currencies Limited
On July 9, 2004 the Company completed the acquisition of the foreign exchange business of Global
Currencies Limited through the purchase of all the shares of INTL Holdings (U.K.) Limited. INTL Holdings
(U.K.) Limited is a U.K. holding company that owns 100% of INTL Global Currencies. The Company made cash
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