# 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
    September 30, 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.   Yes       No

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

The number of units outstanding, as of September 30, 2004,
    is 8,383.26.

|TABLE OF CONTENTS                                            
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|PART I. FINANCIAL INFORMATION                                
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|Part II. OTHER INFORMATION                                   
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|EXHIBIT 31.01 - Certifications of Principal Executive Officer
|EXHIBIT 31.02 - Certifications of Principal Financial Officer
|EXHIBIT 32.01 - Section 1350 Certification                   

# PART 1 - FINANCIAL INFORMATION

## Item 1.   Financial Statements

Following are Financial Statements for the fiscal quarter ended
    September 30, 2004 and the additional time frames as noted:

|                                          | Fiscal Quarter
      Ended 09/30/04 | Year to Date
      Ended 09/30/04 | Fiscal Year
      Ended 12/31/03 | Fiscal Quarter
      Ended 09/30/03 | Year to Date
      Ended 09/30/03
|----------------------------------------- | ----------------------------------- | --------------------------------- | -------------------------------- | ----------------------------------- | ---------------------------------
|                                         
|Statements of Financial Condition         | X                                   |                                   | X                                |                                     |                                  
|                                         
|Statements of Operations                  | X                                   | X                                 |                                  | X                                   | X                                
|                                         
|Statement of Changes in Partners' Capital |                                     | X                                 |                                  |                                     |                                  
|                                         
|Notes to Financial Statements             | X                                   |                                   |                                  |                                     |                                  
|                                         

|IDS MANAGED FUTURES II, L.P.
      STATEMENTS OF FINANCIAL CONDITION                                                            
|--------------------------------------------------------------------------------------------------------------------------------
|
|
|ASSETS                                                                                                                          
|Assets:                                                                                                                         
|Equity in commodity futures trading accounts:                                                                                   
|Cash on deposit with Brokers                                                                                                    
|Unrealized gain on open contracts                                                                                               
|Investment in other commodity pools                                                                                             
|                                                                                                                                
|                                                                                                                                
|                                                                                                                                
|Interest receivable                                                                                                             
|Redemptions receivable from other commodity pools                                                                               
|                                                                                                                                
|Total assets                                                                                                                    
|                                                                                                                                
|LIABILITIES AND PARTNERS' CAPITAL                                                                                               
|Liabilities:                                                                                                                    
|Accrued commissions                                                                                                             
|Accrued exchange, clearing and NFA fees                                                                                         
|Accrued management fees                                                                                                         
|Accrued incentive fees                                                                                                          
|Accrued operating expenses                                                                                                      
|Accrued General Partner fees                                                                                                    
|Redemptions payable                                                                                                             
|                                                                                                                                
|Total liabilities                                                                                                               
|                                                                                                                                
|Partners' capital:                                                                                                              
|Limited partners (8,006.69 units outstanding at September 30, 2004,
            8,680.82 units outstanding at December 31, 2003)
|General partners (376.57 units outstanding at September 30, 2004
            and December 31, 2003)                             
|                                                                                                                                
|Total parters' capital                                                                                                          
|                                                                                                                                
|Total liabilities and partners' capital                                                                                         
|                                                                                                                                
|Net asset value per unit                                                                                                        
|                                                                                                                                
|See accompanying notes to financial statements.                                                                                 

|IDS MANAGED FUTURES II, L.P.
                STATEMENTS OF OPERATIONS
                (unaudited)
|-------------------------------------------------------------------------------------------------
|
|Revenues:                                                                                        
|Gain (loss) on trading of:                                                                       
|Realized (loss) gain on closed positions                                                         
|Change in unrealized gain (loss) on open contracts                                               
|Interest income                                                                                  
|Income from investment in other commodity pools                                                  
|Foreign currency transaction (loss) gain                                                         
|Other revenue                                                                                    
|                                                                                                 
|Total revenues                                                                                   
|                                                                                                 
|Expenses:                                                                                        
|Commissions                                                                                      
|Exchange, clearing and NFA fees                                                                  
|Management fees                                                                                  
|Incentive fees                                                                                   
|Administrative fees                                                                              
|Operating expenses                                                                               
|                                                                                                 
|Total expenses                                                                                   
|                                                                                                 
|Net (loss) income                                                                                
|                                                                                                 
|(LOSS) PROFIT PER UNIT OF PARTNERSHIP INTEREST                                                   
|                                                                                                 
|See accompanying notes to financial statements.                                                  

|IDS MANAGED FUTURES II, L.P.
      STATEMENT OF CHANGES IN PARTNERS' CAPITAL
      For the period January 1, 2004 through September 30, 2004
      (unaudited)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|                                                                                                                                                              
|Partners' capital at January 1, 2004                                                                                                                          
|                                                                                                                                                              
|Net loss                                                                                                                                                      
|                                                                                                                                                              
|Redemptions                                                                                                                                                   
|                                                                                                                                                              
|Partners' capital at September 30, 2004                                                                                                                       
|                                                                                                                                                              
|Net asset value per unit January 1, 2004                                                                                                                      
|                                                                                                                                                              
|Net loss per unit                                                                                                                                             
|                                                                                                                                                              
|Net asset value per unit September 30, 2004                                                                                                                   
|                                                                                                                                                              
|* Units of limited partnership interest.                                                                                                                      
|                                                                                                                                                              
|See accompanying notes to financial statements.                                                                                                               

# IDS MANAGED FUTURES II, L.P.
       NOTES TO FINANCIAL STATEMENTS
       September 30, 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.

Units of limited
partnership interest (units) were offered by AXP Advisors commencing
July 14, 1987 through December 31, 1988. The total amount of the offering was
$40,000,000. There is no definite number of units authorized for the Partnership
because investors affiliated with the Selling Agent of the Partnership were not
required to pay selling commissions. As of December 31, 1988, 60,127.14 units
representing a total investment of $14,983,249 had been sold and accepted into
the Partnership (excluding 627.95 units purchased by the General Partners for
$150,110). A final group of investors purchasing units worth $423,750 between
December 20, 1988 and December 31, 1988 were admitted into the Partnership on
January 31, 1989, at a Net Asset Value of $255.27. The General Partners also
purchased an additional $3,960 of units on January 31, 1989. Commencing January
1, 1989, the Partnership no longer accepts new investors.

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, and related options and cash dealer
prices at a predetermined time for forward contracts, physical commodities and
their related options) 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 $18.75 per half turn contract 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) and Sunrise Capital Partners, LLC (Sunrise).

Under signed agreement, JWH
receives a monthly management fee of 0.166% (a 2% annual rate) 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.
Under signed agreement, Sunrise receives a monthly management fee of 0.166% (a
2% annual rate) 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 September 30, 2004 and
2003, JWH was managing approximately 64% of the Partnerships assets while
Sunrise was indirectly managing 36% 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 September 30, 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 September 30, 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 September 30, 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

As of December 2001, the
Partnership invests 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 and paid
such amounts to Sunrise, the sole Commodity Trading Advisor (CTA).

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                                                                           |   | 130,908  
|Management and incentive fees                                                      |   | (473,327)
|Other expenses                                                                     |   | (104,129)
|                                                                                  
|Net income before allocation to limited partners                                   |   | (446,548)
|Allocation to the other limited partners                                           |   | (341,374)
|                                                                                  
|Partnership's income from investment in IDSMF                                      |   | (105,174)
|                                                                                  
|Partnership's redemptions from IDSMF                                               |   | (276,528)
|                                                                                  
|Net asset value of the Partnership's investment in
      IDSMF, September 30, 2004 |   | 1,943,345

The following table is a
summary of IDSMFs net assets, at September 30, 2004.

|                                               | Number of
        contracts |           | Principal/
        notional value |  |   | Value/
        Open Trade Equity (OTE) | 
|---------------------------------------------- | --------------------------- | --------- | --------------------------------- |  | - | -------------------------------------- | 
|Long positions                                
|Futures positions (1.60%)                     
|Energy                                         | 20                          | $         | 992,800                           |  | $ | 63,740                                 | 
|Interest rates                                 | 151                         |           | 10,929,949                        |  |   | 28,282                                 | 
|Metals                                         | 27                          |           | 1,225,538                         |  |   | 49,096                                 | 
|Indices                                        | 6                           |           | 296,388                           |  |   | (10,493)                               | 
|                                               |                             |           |                                   |  |   |                                        | 
|                                               |                             |           | 13,444,675                        |  |   | 130,625                                | 
|                                               |                             |           |                                   |  |   |                                        | 
|Forward positions (0.56%)                     
|Currencies                                     | 9                           |           | 3,953,266                         |  |   | 45,541                                 | 
|                                               |                             |           |                                   |  |   |                                        | 
|Total long positions                           |                             | $         | 17,397,941                        |  | $ | 176,166                                | 
|                                               |                             |           |                                   |  |   |                                        | 
|                                              
|Short positions                               
|Futures positions (0.64%)                     
|Agriculture                                    | 36                          | $         | 437,088                           |  | $ | 94,038                                 | 
|Metals                                         | 10                          |           | 374,325                           |  |   | (41,800)                               | 
|                                               |                             |           |                                   |  |   |                                        | 
|                                               |                             |           | 811,413                           |  |   | 52,238                                 | 
|                                              
|Forward positions (-0.64%)                    
|Currencies                                     | 30                          |           | 7,465,387                         |  |   | (52,516)                               | 
|                                               |                             |           |                                   |  |   |                                        | 
|Total short positions                          |                             | $         | 8,276,800                         |  | $ | (278)                                  | 
|                                               |                             |           |                                   |  |   |                                        | 
|Total open contracts (2.16%)                   | $                           | 175,888   |                                  
|Cash on deposit with brokers (101.06%)         | 8,233,222                   |          
|Other assets in excess of liabilities (-3.22%) | (262,164)                   |          
|                                               |                             |           |                                   |  |   |                                        | 
|Net assets (100%)                              | $                           | 8,146,946 |                                  
|                                               |                             |           |                                   |  |   |                                        | 

## (7)   Financial Highlights

The following financial
highlights show the Partnerships financial performance for the nine-month
period ended September 30, 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
|Less incentive fee allocation     
|Total Return                      
|                                  
|Ratio to average net assets:      
|Net loss                          
|                                  
|Expenses:                         
|Expenses                          
|Incentive fees                    
|                                  
|Total expenses                    

The net income and expense
ratios are computed based upon the weighted average net assets for the
Partnership for the nine-month period ended September 30, 2004 and are not
annualized. Ratios do not reflect income or expenses related to investment in
other commodity pools.

|IDS MANAGED FUTURES II, L.P.
    Condensed Schedule of Investments
    September 30, 2004
    (unaudited)
|---------------------------------------------------------------------------------------------------------
|
|Long positions                                                                                           
|Futures positions (5.41%)                                                                                
|Interest rates                                                                                           
|Metals                                                                                                   
|Indices                                                                                                  
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Forward positions (1.32%)                                                                                
|Currencies                                                                                               
|                                                                                                         
|Total long positions                                                                                     
|                                                                                                         
|Short positions                                                                                          
|Futures positions (-0.26%)                                                                               
|Metals                                                                                                   
|                                                                                                         
|Forward positions (-2.10%)                                                                               
|Currencies                                                                                               
|                                                                                                         
|Total short positions                                                                                    
|                                                                                                         
|Total open contracts (4.37%)                                                                             
|Cash on deposit with brokers (60.88%)                                                                    
|Investment in other commodity pools (35.85%)                                                             
|Other assets in excess of liabilities (-1.10%)                                                           
|                                                                                                         
|Net assets (100%)                                                                                        
|                                                                                                         

## 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 nine month ended
September 30, 2004, Limited Partners redeemed a total of 674.13 units for
$515,938.03 and for the nine month ended September 30, 2003, Limited Partners
redeemed a total of 620.50 units for $476,183.

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
Partnerships 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 September 30, 2004, the Partnership had no credit exposure to a
counterparty which is a foreign commodities exchange which was material.

## (b)   Liquidity

The Partnerships
assets are held in brokerage accounts with CIS and CISFS. Except in 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 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 September 30, 2004, CIS had paid or
accrued to pay interest of $31,578 to the Partnership and for the period ended
September 30, 2003, CIS had paid or accrued to pay interest of $32,228 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 and second
quarters 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 September 30, 2004

The Partnership recorded a
loss of $388,266 or $(45.13) per unit for the third quarter of 2004. On
September 30, 2004, JWH was managing 64% of the Partnerships assets while
Sunrise was managing 36% of the Partnerships assets.

Overall the Fund was
negative for the month of July. The month began with a 25 basis point rate
increase by the Federal Open Markets Committee (FOMC). Economic figures,
released throughout the month, continued to provide positive indications for the
US economy. However, most of the data failed to meet market expectations. The
lack of robust economic figures prevented the financial markets from trending in
one direction for any sustained period. In the commodity sector, with the
prospect of an abundant harvest, grain prices continued their steady decline,
which led to gains for the Fund. In the energy market, the rally in oil prices
continued throughout July. The agricultural sector was positive for the Fund in
July. The best returns in the sector came from soybeans and cotton, while the
largest losses were in coffee traded on the New York and London markets.
Trendless trading conditions in the foreign exchange markets persisted in July
resulting in losses for the Fund. The dollar began the month depreciating
against the worlds major currencies only to reverse course and rally
midway through the month. The largest gains were in the euro/Canadian dollar
cross, Japanese yen, the British Pound/Euro cross and Swiss Franc/Euro Cross.
The largest losses were in the Dollar/euro and Dollar/Swiss franc positions. The
energy sector performance for the Fund was positive in July. The price of crude
oil continued to trade higher with the price per barrel exceeding $40. The best
performer in the sector was London gas oil. The largest loss occurred in natural
gas. The Funds performance in the stock indices sector was negative for
July. Contradictory economic figures along with weaker than expected earnings
numbers continued to dampen any rally in the equities market. All components of
this sector had losses, with the largest loss coming from Osaka Nikkei. The
fixed income sector was also negative for July. Despite the rate hike by the
FOMC in late June, the US economic data for this month, painted a somewhat
confusing picture for this sector which had the markets back tracking from
earlier trends. The best returns came from the Japanese government bond and the
short sterling. The largest losses occurred in 3-month Eurodollar contract and
the Australian 10-year bond. The metals sector was negative for the Fund in
July. Price action in gold has been negatively correlated with movements in the
dollar. The lack of conviction is evident in the foreign exchange market and
mixed signals on the US economy may explain the recent trendless pattern in
metals prices. Gains on copper positions were not enough to offset losses in
gold and silver.

Overall, the Fund was
negative for the month of August. Fixed-income markets provided the most
significant gains for the Fund as prices rallied in response to the weak US
unemployment data and other weaker-than-expected fundamental data. The Fund
suffered losses in the foreign exchange markets that continued to be dominated
by short-term trading activity and little conviction of a trend. The
fixed-income sector provided significant gains for the Fund in August. In the
US, markets rallied sharply early in the month as employment data was much
weaker than most analysts had anticipated. The British fixed-income markets
rallied as reports indicated a slowdown in the UK housing market and a tempering
of inflation fears. The largest gains for the month were in the bund and the US
30-year bond. The only losses for this sector were in Asia with the euroyen and
the Japanese Government bond. The Funds foreign exchange sector was
negative for August. Most foreign exchange markets failed to sustain any
discernible direction for the month. European currencies continued to experience
volatile swings on an intra-month basis; after poor US employment data, they
gave back most of the gains they had made against the US dollar. The Japanese
yen strengthened against the US dollar. The largest gain came from the
Australian dollar, while the largest losses were in the Euro/Japanese yen,
Euro/British Pound, and Swiss Franc/British Pound crosses. Indices have
continued to stay range-bound in 2004. In spite of good profit reports for many
companies, the threat of future declines has not allowed the US, European and
Japanese markets to gain any traction. Volatility is still extremely low in
these markets, but the absence of long-term trends has limited the potential for
profit. The largest gain was in the NASDAQ E-mini, while the largest loss was in
the Nikkei. The energy sector was negative for the Fund in August. Moderate
weather and a continued build up inventory was the primary reason for the
weakness in natural gas. Crude oil produced marginal profits while testing the
$50 per barrel level mid month as geo-political tensions and fears of terrorist
activity in Iraq escalated. The largest sector gain was in natural gas, while
the largest loss was in London gas oil. The agricultural sector was negative for
August. Grain prices rallied from seasonal lows. Reports on soybean crop
conditions did not meet expectations, and long-term weather forecasts suggesting
the possibility of an early frost prompted profit taking in the grain complex.
Early in the month cotton rallied 6.8% and closed limit up on little fundamental
news. A further increase in cotton prices came late in the month on fears that
Hurricane Frances would disrupt cotton supplies. The largest losses were in
soybeans and cotton, while the largest gain was in wheat. The metals sector was
positive for August. The gold rally provided all of the returns for the month.

The Funds overall
performance was positive for September. A significant portion of
Septembers gain was directly related to trading in the energy sector.
Crude Oil experienced the most dramatic price increase since the mid-70s
as a result of rising demand out of Asia, supply disruptions in Iraq coupled
with hurricane season in the US and fears of rebels attacking Nigerian oil
production facilities. The correlated energy products market, which includes
heating oil and unleaded gas, traded higher as well. Fixed income markets were
volatile yet profitable for the Fund. The Federal Reserve Board raised the
Federal Funds rate 25 basis points to 1.75%. This increase combined with the
expected effect of higher energy prices, helped push long-term interest rates
lower and to flatten the yield curve. This disparate performance along the yield
curve was also reflected in the Funds performance in this sector:
Positions in longer-term bond contracts in the US, Japan and Europe were
profitable with the largest gain made in Japanese Government Bond, while
positions in short-term interest rates contracts, including Eurodollars were
slightly unprofitable. Trading in the foreign exchange markets continued to be
difficult this year as many of the major currencies remain stuck in broad
ranges. Overall trading in this sector was slightly unprofitable for the Fund.
The largest gain came from the Canadian dollar/Japanese Yen cross, while the
largest losses were in the British Pound, and the British Pound/Swiss Franc
cross rates. Opportunities in the equity markets have been limited as volatility
in many of the worlds stock markets is registering multi-year lows. Hopes
are that equity markets will begin to move after the U.S. presidential
elections. The Funds largest loss was in the Osaka Nikkei and the only
gain was in the Australian All Ordinaries Index. Trading in agricultural markets
was profitable for the Fund. The largest gains were from corn, soybeans and
cotton. In a year when headline commodity indices are making strong gains, the
grain complex continues to move lower. Ample supply and benign weather
conditions have been factors suppressing grain prices. Metals trading was
slightly negative for the Fund in September. Positions in copper, gold, and
aluminum were profitable but not to the extent that they offset losses in zinc
and silver.

During the quarter,
investors redeemed a total of 203.30 units. At the end of the quarter there were
8,383.26 units outstanding (including 376.57 units owned by the General
Partners).

During the fiscal quarter
ended September 30, 2004 the Partnership had no material credit exposure to a
counterparty which is a foreign commodities exchange.

## Fiscal Quarter ended September 30, 2003

The Partnership recorded a
loss of $377,335 or $40.41 per unit in the third quarter of 2003.

The Partnership began the
quarter in negative territory, had a stronger August, but performance reversed
in September to post a negative quarter. On September 30, 2003, JWH was managing
70% of the Partnerships assets while Sunrise was indirectly managing 30%
of the Partnerships assets.

July was a difficult
trading month, as there were significant trend reversals in major markets that
resulted in a loss. There were clear signs that the U.S. economic outlook was
improving, as well as signs that a coordinated global economic recovery was also
beginning. In general, the effect of all these factors was a strengthening U.S.
dollar against most major currencies, rising global interest rates, mildly
better stock prices, and higher base metal prices. The fixed income sector was
positive for July. The best performing components of the sector were the short
U.S. 10-year note and 30-year bond position. Foreign exchange trading had the
largest loss for July. The strength of the U.S. dollar resulted in losses in the
long British pound, Australian dollar, Swiss franc and the Euro positions. All
equity indices registered positive gains in July. The best performers in the
sector were the Osaka Nikkei and the German DAX. All components of the energy
sector were positive in July. Metals were down for July due to a short position
in gold. Agriculture products were in negative territory for the month. Overall,
the Partnership recorded a loss of $224,893 or $23.91 per unit in July.

Trending markets enabled
the Fund to post a profitable August. Global markets responded to improving
economic conditions in the U.S., Japan and, to a lesser degree, Europe. As a
result, interest rates continued to move higher in these regions, and the U.S.
dollar strengthened against most major currencies. Energy markets, with the
exception of natural gas, continue to escalate due to supply concerns. The fixed
income sector was up for the month of August. The vast majority of the profits
came from a short Japanese government 10-year bond position. The foreign
exchange sector was negative for August. The strengthening of the Yen against
the U.S. dollar resulted in the largest loss in this sector for the month.
Equity indices were profitable in August. The energy sector and metals were also
up in August. Agricultural products were down for the month. The downward trend
in grains that started in June reversed in the beginning of August due to harsh
weather conditions. All in all, the Partnership recorded a gain of $129,966 or
$13.83 per unit in August.

The trends that provided
profits in August abruptly turned around in September resulting in a loss for
the month. The strength of the economic recovery in the United States was called
into question due to the continued weakness in the U.S. government employment
numbers. The result was interest rates moving lower again and the U.S. dollar
giving back recent gains. Additionally, OPEC announced late in the month that
they would be cutting production of crude oil, which reversed the decline in
prices. The fixed income sector incurred the largest loss for September. The
recovery of the Japanese government bond made the Partnerships short
position the largest loss for the month. Currencies were positive in September.
The vast majority of the profits came from the Japanese yen. Indices were
negative in September. The losses were spread fairly evenly across the sector.
The energy sector incurred the second largest loss for September due to the
short position in oil. Metals were positive in September as the profits came
from gold, which continued to trend higher in anticipation of higher inflation.
Agricultural products were up for September. Overall, the Partnership recorded a
loss of $282,408 or $30.33 per unit in September.

During the quarter,
investors redeemed a total of 153.89 units. At the end of the quarter there were
9,251.29 units outstanding (including 376.57 units owned by the General
Partners).

During the fiscal quarter
ending September 30, 2003, the Partnership had no material credit exposure to a
counterparty, which is a foreign commodity exchange, or to any counterparties
dealing in over the counter contracts.

## Fiscal Quarter ended June 30, 2004

The Partnership recorded a
loss of $1,305,346 or $(150.47) per unit for the second quarter of 2004. On June
30, 2004, JWH was managing 64% of the Partnerships assets while Sunrise
was managing 36% of the Partnerships assets.

The second quarter of 2004
produced no meaningful trends. In April, the markets continued to focus on
growing expectations of higher U.S. interest rates. Speculation about the timing
and scope of the possible tightening contributed to high volatility and major
price reversals particularly in the currencies and global equity indices. The
U.S. dollar strengthened against most major currencies in response to U.S. job
creation. Consumer confidence and manufacturing activity appear to be waning in
Germany, exerting downward pressure on the Euro. Expectations of rising rates
also sent the prices of long-term interest rate futures to their lowest levels
in several months. The Swiss franc and Euro were the best performers while the
Japanese yen was the major detractor. Indices were negative in April. More than
half of the companies in the Standard & Poors 500 Index reported
earnings and 78% of these surpassed analysts forecasts. Japanese equity
markets were strong all month while the U.S. and some of the European stock
markets faltered later in the month. A slowing of the Chinese economy and
possible decline in the global demand for commodities put downward pressure on
prices. Cotton and London sugar had the best performance while wheat had the
largest loss. Metals also felt the downward pressure Precious metal investors
liquidated long positions which had been a hedge against the negative real rate
of return in the U.S. Energies were profitable in April. Concerns about
continued violence in the Middle East and increased global consumer demand
helped to maintain prices at their current lofty levels. Natural gas was the
only negative component in this sector.

In May, a number of factors
created uncertainty in the financial markets and prevented strong trends from
emerging. The month was dominated by developments in the oil market, U.S.
interest rates and the possibility of inflation. The exceptions to the
non-definition were the energy markets. The price of oil reached record highs on
continued supply concerns and increased geopolitical risk. Chinas
increasing appetite for petroleum placed additional strain on available
production while Saudi Arabias offer to increase production had little
effect on stabilizing the price of crude oil. All components in this sector were
profitable with best performance coming from London gas oil and crude oil.
Although choppy, the fixed income markets produced positive results. The U.S.
economy continues to show signs of improvement with fears of rising inflation
diminishing. The best results were achieved in the Euro Bund. The largest losses
occurred in the Japanese Government bond and the Australian 10-year bond. The
currency sector was negative in May. The U.S. dollar was heavily influenced in
the beginning of the month by the release of improving economic numbers and
revised expectations for continued growth in the U.S. The best results from this
sector were achieved in the British pound / Japanese yen cross and the
Australian dollar. The largest detractors from performance were the Japanese yen
and the Swiss franc. The major global equity markets continue to struggle. World
GDP continues at a strong pace; however, concerns over rising interest rates and
high energy prices have reduced enthusiasm for stocks. This sector failed to
register any components in positive territory with the largest loss coming from
the Nikkei. The agricultural sector was negative for May. Coffee prices surged
higher due to fears of frost and other weather delays regarding the Brazilian
coffee harvest. Live cattle made large gains this month after comments by USDA
Secretary Veneman indicated uncertainties surrounding the resumption of Canadian
cattle imports to the U.S. New York coffee had the best performance in this
sector. Corn and soybeans has the largest losses. The metals sector was
unprofitable in May. Metal prices fell lower for most of the month. Base metals
came under pressure due to prospects that Chinas demand for raw materials
will weaken as its economy slows. This sector failed to register any components
in positive territory with the largest loss coming from aluminum.

Overall, the Partnership
was negative for the month of June. Financial markets were relatively quiet
during the month, waiting for a few critical events scheduled for the end of
June: the long-anticipated first rate increase by the Federal Reserve, the
handover of power in Iraq, U.S. employment data and the continued slowing of the
Chinese economy. While the rate increase was in line with expectations, jobless
claims and manufacturing data proved to be slightly worse than expected and had
a much bigger impact on the market than the rate hike alone. In Europe, German
bond prices rose after a report was released showing that German business
confidence had dropped unexpectedly. Japanese interest rates rose driving yields
to their highest level in 4 years. The best performer was the 3-month Eurodollar
contract and the largest losses were Japanese Government bond and Euro Bund. The
foreign exchange sector was negative for June. The U.S. dollar was essentially
flat, ending the month with little change. The Japanese yen strengthened against
most currencies on prospects of continued economic expansion. Minor currencies
were mixed against the U.S. dollar. Profits were generated in Australian dollar,
Swiss franc and Japanese yen options. The largest losses were from the Japanese
yen and Euro/British pound cross. Stock indices were positive for June. Major
stock markets continued to climb higher after their slide in mid-May, although
single-digit earnings growth in major markets, the high cost of energy and the
anticipation of rising interest rates dampened enthusiasm. The best return came
from Australian SPI 200 and the largest loss was in the Eurostoxx 50. The energy
sector was negative for June. These markets continue to be volatile with a bias
upward. Crude oil and related prices remain robust as a result of the strong
growth in the U.S. and China and continuing tensions in the Middle East. The
best performer was London gas oil and the largest losses came from Nymex crude
oil and natural gas. The agricultural sector was negative for June. Decreased
demand from China put downward pressure on the grains. Coffee felt the weight of
increased production in Brazil. The price of cotton moved lower anticipating
increased plantings in other countries. Cotton gave the best return and New York
coffee and soybeans were the largest losses. The metals sector was positive this
month. The price of gold and silver fell at the beginning of the month against a
strengthening U.S. dollar, with gold being buoyed again by the weakening U.S.
dollar toward month end. Base metals initially moved lower anticipating
decreased demand from China however low levels of global inventories pushed
prices higher by month end. The best performer was silver and the largest losses
came from aluminum and gold. During the quarter, investors redeemed a total of
107.06 units. At the end of the quarter there were 8,586.56 units outstanding
(including 376.57 units owned by the General Partners).

During the fiscal quarter
ended June 30, 2004 the Partnership had no material credit exposure to a
counterparty which is a foreign commodities exchange.

## Fiscal Quarter ended June 30, 2003

The Partnership recorded a
net profit of $272,336 or $28.37 per unit in the second quarter of 2003.

IDS Managed Futures II,
L.P. began the quarter with gains in April and a strong May but closed lower in
June. Overall, it ended the quarter in positive territory. On June 30, 2003, JWH
was managing 69% of the Partnerships assets while Sunrise was indirectly
managing 31% of the Partnerships assets.

The Partnership ended April
in positive territory as the swift victory in Iraq impacted markets worldwide.
The currency sector was primarily responsible for the Partnerships gain in
April. The initial enthusiasm for the U.S. dollar in a post-Iraqi war world gave
way to bleak fundamentals. The U.S. deficit continued to weigh heavily on the
Dollar. Non-Dollar trading had the largest effect on trading profits,
specifically, the long Euro/short Yen, long Euro/short British pound, and the
long Australian dollar positions. The interest rate sector was positive largely
due to a long position in the Japanese 10-year Government bond. The stock index
position was down slightly. Most equity markets rallied around the world,
encouraged by the quick end to major conflict in Iraq. Energies were marginally
positive in April. The fewer than expected oil field fires in Iraq put
considerable downward pressure on the price per barrel. Natural gas rallied most
of the month on weather related issues and storage deficits. Contrary to the
Partnerships position, gold rallied in early April in expectation of the
next inflationary cycle. This led to negative performance in the metal sector.
Agricultural products were slightly profitable for the month. In response to the
conclusion of the major fighting in the Iraqi war, JWH did resume full leverage
in the trading programs effective April 10. The decision to reduce exposure to
all markets during the Iraqi conflict proved to be beneficial for investors.
Overall, the Partnership recorded a gain of $67,997 or $7.02 per unit in April.

The Partnership also posted
positive results for the month of May. Currencies were the best performing
sector for May due mainly to the weakening of the U.S. dollar. Investments in
the fixed income sector were positive for the month of May, as yields continued
to trend lower.  The biggest contributors were the Euro Bunds, U.S. 30-year
Bonds, Japanese Government 10-year Bonds, and the U.S. 10-year Notes.
 Stock indices were negative for May due primarily to the poor performance
in the Japanese Osaka Nikkei Index.  The Nasdaq E-Mini 100 Index turned in
the best performance for this sector.  Energies posted negative results in
May.  All crude and crude-related products were down as a result of the
markets rallying due to short supply factors.  The only positive component
in this sector was natural gas. Agricultural products were negative for May. The
largest detractors were corn and coffee traded on the New York markets, while
the largest positive contributor was cotton. Metals were slightly down for May.
 Losses occurred in copper, silver and aluminum. Only gold managed to
perform in positive territory. Overall, the Partnership recorded a gain of
$562,402 or $58.94 per unit in May.

Overall, the Partnership
was down in June, which started out as a promising month, but turned abruptly
negative during the last two weeks. Two trends that were reestablished after the
Iraqi War -- a weakening Dollar and falling global interest rates -- reversed
course sharply as hints of improving economic times forced the liquidation of
large positions in fixed income and currency markets. Currencies suffered the
largest sector loss in June, due to the late month strengthening of the U.S.
dollar. Stock indices were the only sector to register positive returns for the
month of June. Fixed income investments incurred the second largest sector loss
for June. The largest losses were registered in the Japanese 10-year Government
Bonds, Euro Bunds and the U.S. 30-year bonds. Crude oil was up for the month
despite volatile trading. Prices were buoyed by a downshift in OPEC output and
the concerns over Tropical Storm Bill hitting the Gulf coast. Overall, however,
the energy sector was down for June. The metals sector was down in June,
primarily due to the poor performance of gold. Agricultural products were down
for the month. All of the other parts of this group had negligible results. The
Partnership recorded a loss of $358,062 or $37.58 per unit in June.

During the quarter,
investors redeemed a total of 282.06 units. At the end of the quarter there were
9,405.18 units outstanding (including 376.57 units owned by the General
Partners).

During the fiscal quarter
ending June 30, 2003, the Partnership had no material credit exposure to a
counterparty, which is a foreign commodity exchange, or to any counterparties
dealing in over the counter contracts.

## 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 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 continued to improve. The
best performing positions were: Euro/Pound cross, long positions in British
pounds versus Japanese 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 had 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 end of
the period covered by this quarterly report, and, based on their evaluation, the
Chief Executive Officer and Chief Financial Officer of CISI 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.   Unregistered Sales of Securities and Use of Proceeds

| | a) | None                                                                                                                                                                                                                                                                                                             
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b) | None                                                                                                                                                                                                                                                                                                             
| | c) | 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 units 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
partners during the third quarter of 2004:

|Month     | Units Redeemed | Redemption Date NAV per Unit
|--------- | -------------- | ----------------------------
|July      | 72.67          | $  638.27                   
|August    | 64.88          | $  644.87                   
|September | 65.75          | $  646.60                   
|Total     | 203.30         |                             

## Item 3.   Defaults Upon Senior Securities

None

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

None

## Item 5.   Other Information

| | a) | None
| | -- | ----
| | b) | None

## Item 6.   Exhibits and Reports on Form 8-K

|      | a)                                                                                                                                                                                                                                                                                               | Exhibits                                                                                                                                                                                                                  
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | ExhibitNumber                                                                                                                                                                                                                                                                                    | Description of Document                                                                                                                                                                                                   
|      | 3.1                                                                                                                                                                                                                                                                                              | Amended and Restated Limited Partnership Agreement.                                                                                                                                                                       
|      | 10.1                                                                                                                                                                                                                                                                                             | Advisory Contract dated as of July 14, 1987 between CIS Investments, Inc., IDS Futures Corporation, IDS Managed Futures II, L.P., John
         W. Henry & Company, Inc. and Sabre Fund Management Limited.               
|      | 10.2                                                                                                                                                                                                                                                                                             | Amended Advisory Contracts dated March 31, 1992 between CIS Investments, Inc., IDS Futures Corporation, IDS Managed Futures II, L.P.
         and each of John W. Henry & Company, Inc. and Sabre Fund Management Limited.
|      | 10.3                                                                                                                                                                                                                                                                                             | Amended Advisory Contract dated April 30, 1996 between CIS Investments, Inc., IDS Futures Corporation, IDS Managed Futures II, L.P.,
         John W. Henry & Company, Inc. and Sabre Fund Management Limited.            
|      | 10.4                                                                                                                                                                                                                                                                                             | Advisory Contract dated as of July 8, 1997 between CIS Investments, Inc., IDS Futures Corporation, IDS Managed Futures II, L.P. and
         Welton Investment Corporation.                                               
|      | 10.5                                                                                                                                                                                                                                                                                             | Amendment to Advisory Contract dated December 31, 1999 between CIS Investments, Inc., IDS Futures Corporation, IDS Managed Futures II,
         L.P. and John W. Henry & Company, Inc.                                    
|      | 10.6                                                                                                                                                                                                                                                                                             | Guarantee dated March 21, 2000 between IDS Managed Futures II, L.P. and Cargill, Incorporated.                                                                                                                            
|      | 10.7                                                                                                                                                                                                                                                                                             | Amendment to Afvisory Contract dated September 29, 2000 between CIS Investments, Inc., IDS Futures Corporation,
          IDS Managed Futures II, L.P. and John W. Henry & Company, Inc.                                  
|      | 31.01                                                                                                                                                                                                                                                                                            | Rule 13a-14(a)/13d-14(a) Certifications of Principal Executive Officer                                                                                                                                                    
|      | 31.02                                                                                                                                                                                                                                                                                            | Rule 13a-14(a)/13d-14(a) Certifications of Principal Financial Officer                                                                                                                                                    
|      | 32.01                                                                                                                                                                                                                                                                                            | Section 1350 Certification                                                                                                                                                                                                
|     
|Note: | Exhibits 3.1 and 10.1 are incorporated by reference to
        Registration Statement No. 33-13938 declared effective on July 14, 1987, Post-Effective Amendment
        No. 1 declared effective on April 27, 1988 and Post-Effective Amendment No. 2 declared effective on
        May 4,1988.
|Note: | Exhibits 10.2, 10.3 and 10.4 are incorporated by
        reference to Form 10-K filed by the Partnership on March 27, 1998.                                                                                                                                                                     
|Note: | Exhibits 10.5 and 10.6 are incorporated by reference to
        Form 10-K by the Partnership on March 28, 2000.                                                                                                                                                                                 
|Note: | Exhibits 10.7 is incorporated by reference to
        Form 10-K by the Partnership on March 26, 2001.                                                                                                                                                                                           
|     
|      | b)                                                                                                                                                                                                                                                                                               | Reports on Form 8-K                                                                                                                                                                                                       
|      |                                                                                                                                                                                                                                                                                                  | None                                                                                                                                                                                                                      

# SIGNATURES

Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned and thereunto
duly authorized.

## IDS MANAGED FUTURES II, L.P.

Date: November 12, 2004

|By: | CIS Investments, Inc.,
        One of its General Partners                   
|--- | -----------------------------------------------------------------------------
|   
|   
|   
|   
|By: | /s/ Shaun D. O'Brien
        Shaun D. O'Brien
        Chief Financial Officer

(Duly authorized officer
    of the General Partner and the Principal Financial Officer of the General Partner)

# EXHIBIT INDEX

| | ExhibitNumber |  | Description of Document                                               
| | ------------- |  | ----------------------------------------------------------------------
| | 31.01         |  | Rule 13a-14(a)/15d-14(a) Certifications of Principal Executive Officer
| | 31.02         |  | Rule 13a-14(a)/15d-14(a) Certifications of Principal Financial Officer
| | 32.01         |  | Section 1350 Certification                                            
|