**Exhibit 13.01**

 

***ML SELECTFUTURES I L.P.***

***(A Delaware Limited Partnership)***

** **

** **
| * * | *Financial Statements for the years ended*    |
|----------|-----------------------------------------------|
| * * | *December 31, 2007, 2006 and 2005*       |
| * * | *and Report of Independent Registered Public* |
| * * | *Accounting Firm*                             |

 

 

 

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ML Select FuturesI L.P.

(A DelawareLimited Partnership)

 

TABLE OF CONTENTS

 
| ** **                                                                                                  | **Page** |
|-------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                        |     |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING  FIRM                                                    | 1        |
|                                                                                                        |     |
| FINANCIAL STATEMENTS:                                                                                       |     |
|                                                                                                        |     |
| Statements of  Financial Condition as of December 31, 2007 and 2006                                    | 2        |
|                                                                                                        |     |
| Statements of  Operations for the years ended December 31, 2007, 2006 and 2005                         | 3        |
|                                                                                                        |     |
| Statements of  Changes in Partners’ Capital for the years ended December 31, 2007, 2006  and 2005 | 4        |
|                                                                                                        |     |
| Financial Data  Highlights for the years ended December 31, 2007, 2006 and 2005                        | 5        |
|                                                                                                        |     |
| Notes to  Financial Statements                                                                              | 6-12     |

 

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REPORT OF INDEPENDENTREGISTERED PUBLIC ACCOUNTING FIRM

 

To the Partners of 

  ML Select Futures I L.P.:

 

We have audited the accompanying statements of financial condition ofML Select Futures I L.P. (the “Partnership”), as of December 31, 2007 and 2006,and the related statements of operations and changes in partners’ capital andthe financial data highlights for each of the three years in the period endedDecember 31, 2007.  These financial statements and financial datahighlights are the responsibility of the Partnership's management.  Ourresponsibility is to express an opinion on these financial statements andfinancial data highlights based on our audits.

 

We conducted our audits in accordance with the standards of the PublicCompany Accounting Oversight Board (United States).  Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements and financial data highlights are free ofmaterial misstatement.  The Partnership is not required to have, nor werewe engaged to perform, an audit of its internal control over financialreporting.  Our audits included consideration of internal control overfinancial reporting as a basis for designing audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Partnership's internal control over financialreporting.  Accordingly, we express no such opinion.  An audit alsoincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements, assessing the accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statements and financial data highlightsreferred to above present fairly, in all material respects, the financialposition of ML Select Futures I L.P. as of December 31, 2007 and 2006, theresults of its operations, the changes in its partners’ capital, and itsfinancial data highlights for each of the three years in the period endedDecember 31, 2007, in conformity with accounting principles generally acceptedin the United States of America.

* *

* *

/s/ Deloitte & Touche LLP

Princeton, New Jersey

March 31, 2008

 

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ML SELECT FUTURESI L.P.

(A DelawareLimited Partnership)

 

STATEMENTS OFFINANCIAL CONDITION

DECEMBER 31, 2007AND 2006

 
| ** **                                                                        | ** ** | **2007**    | ** **  | **2006**    | ** ** |
|-----------------------------------------------------------------------------------|------------|-------------|-------------|-------------|------------|
| **ASSETS:**                                                                       |       |        |        |        |       |
|                                                                              |       |        |        |        |       |
| Equity in commodity  futures trading accounts:                                    |       |        |        |        |       |
| Cash (includes  restricted cash of $26,426,863 for 2007 and $92,042,246 for 2006) |       | $           | 230,559,475 |        | $          | 322,600,743 |   |
| Net unrealized  profit on open contracts                                          |       | 7,570,860   |        | 9,022,301   |       |
| Accrued interest                                                                  |       | 625,818     |        | 1,378,976   |       |
| Due from MLAI                                                                     |       | 17,001      |        | —      |       |
|                                                                              |       |        |        |        |       |
| **TOTAL  ASSETS**                                                                 |       | $           | 238,773,154 |        | $          | 333,002,020 |   |
|                                                                              |       |        |        |        |       |
| **LIABILITIES  AND PARTNERS’ CAPITAL**                                       |       |        |        |        |       |
|                                                                              |       |        |        |        |       |
| LIABILITIES:                                                                      |       |        |        |        |       |
|                                                                              |       |        |        |        |       |
| Brokerage  commissions payable                                                    |       | $           | 1,093,977   |        | $          | 1,526,262 |   |
| Profit Shares  payable                                                            |       | 538,379     |        | —      |       |
| Administrative  and filing fees payable                                           |       | 70,559      |        | 90,193      |       |
| Redemptions  payable                                                              |       | 11,315,876  |        | 5,212,995   |       |
|                                                                              |       |        |        |        |       |
| Total  liabilities                                                                |       | 13,018,791  |        | 6,829,450   |       |
|                                                                              |       |        |        |        |       |
| **PARTNERS’  CAPITAL:**                                                      |       |        |        |        |       |
|                                                                              |       |        |        |        |       |
| General Partner  (13,916 Units and 14,878 Units)                                  |       | 3,483,352   |        | 3,607,393   |       |
| Limited Partners  (887,137 Units and 1,330,119 Units)                             |       | 222,271,011 |        | 322,565,177 |       |
|                                                                              |       |        |        |        |       |
| Total partners’  capital                                                     |       | 225,754,363 |        | 326,172,570 |       |
|                                                                              |       |        |        |        |       |
| **TOTAL  LIABILITIES AND PARTNERS’ CAPITAL**                                 |       | $           | 238,773,154 |        | $          | 333,002,020 |   |
|                                                                              |       |        |        |        |       |
| **NET  ASSET VALUE PER UNIT**                                                     |       |        |        |        |       |
| (Based on  901,053 and 1,344,997 Units outstanding; unlimited Units authorized)   |       | $           | 250.55      |        | $          | 242.51 |   |

 

See notes tofinancial statements.

 

2

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ML SELECT FUTURESI L.P.

(A DelawareLimited Partnership)

 

STATEMENTS OFOPERATIONS

FOR THE YEARSENDED DECEMBER 31, 2007, 2006 AND 2005

 
| ** **                                                                        | ** ** | **2007**   | ** ** | **2006**   | ** ** | **2005**    | ** ** |
|-----------------------------------------------------------------------------------|------------|------------|------------|------------|------------|-------------|------------|
| **TRADING  PROFIT (LOSS):**                                                       |       |       |       |       |       |        |       |
|                                                                              |       |       |       |       |       |        |       |
| Realized                                                                          |       | $          | 13,343,726 |       | $          | 37,752,945  |       | $ | (24,222,659 | ) |
| Change in  unrealized                                                             |       | (1,451,441 | )          | (5,477,059 | )          | 3,041,057   |       |
|                                                                              |       |       |       |       |       |        |       |
| Total trading  profit (loss)                                                      |       | 11,892,285 |       | 32,275,886 |       | (21,181,602 | )          |
|                                                                              |       |       |       |       |       |        |       |
| **INVESTMENT  INCOME:**                                                           |       |       |       |       |       |        |       |
|                                                                              |       |       |       |       |       |        |       |
| Interest                                                                          |       | 13,248,150 |       | 17,187,972 |       | 15,719,664  |       |
|                                                                              |       |       |       |       |       |        |       |
| **EXPENSES:**                                                                     |       |       |       |       |       |        |       |
|                                                                              |       |       |       |       |       |        |       |
| Brokerage  commissions                                                            |       | 16,351,736 |       | 19,872,678 |       | 27,053,850  |       |
| Profit Shares                                                                     |       | 671,266    |       | 49,055     |       | —      |       |
| Administrative  and filing fees                                                   |       | 993,261    |       | 1,153,304  |       | 1,479,720   |       |
|                                                                              |       |       |       |       |       |        |       |
| Total expenses                                                                    |       | 18,016,263 |       | 21,075,037 |       | 28,533,570  |       |
|                                                                              |       |       |       |       |       |        |       |
| **NET  INVESTMENT LOSS**                                                          |       | (4,768,113 | )          | (3,887,065 | )          | (12,813,906 | )          |
|                                                                              |       |       |       |       |       |        |       |
| **NET  INCOME (LOSS)**                                                            |       | $          | 7,124,172  |       | $          | 28,388,821  |       | $ | (33,995,508 | ) |
|                                                                              |       |       |       |       |       |        |       |
| **NET  INCOME (LOSS) PER UNIT:**                                                  |       |       |       |       |       |        |       |
|                                                                              |       |       |       |       |       |        |       |
| Weighted average  number of General Partner and Limited Partner Units outstanding |       | 1,214,651  |       | 1,537,973  |       | 2,285,957   |       |
|                                                                              |       |       |       |       |       |        |       |
| Net income  (loss) per weighted average General Partner and Limited Partner Unit  |       | $          | 5.87       |       | $          | 18.46       |       | $ | (14.87 | ) |

 

See notes tofinancial statements.

 

3

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ML SELECT FUTURESI L.P.

(A DelawareLimited Partnership)

 

STATEMENTS OFCHANGES IN PARTNERS’ CAPITAL

FOR THE YEARSENDED DECEMBER 31, 2007, 2006 AND 2005

 
| ** **                                       | ** ** | ** **      | ** ** | **General** | ** **      | **Limited**  | ** ** | ** **   | ** ** |
|--------------------------------------------------|------------|-----------------|------------|-------------|-----------------|--------------|------------|--------------|------------|
| ** **                                       | ** ** | **Units**       | ** ** | **Partner** | ** **      | **Partners** | ** ** | **Total**    | ** ** |
|                                             |       |            |       |        |            |         |       |         |       |
| PARTNERS’  CAPITAL, DECEMBER 31, 2004  |       | 2,504,074  |       | $           | 6,199,855  |         | $          | 580,778,511  |       | $ | 586,978,366 |   |
|                                             |       |            |       |        |            |         |       |         |       |
| Subscriptions                                    |       | 5,494           |       | —      |            | 1,181,237    |       | 1,181,237    |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Net loss                                         |       | —          |       | (270,858    | )               | (33,724,650  | )          | (33,995,508  | )          |
|                                             |       |            |       |        |            |         |       |         |       |
| Redemptions                                      |       | (739,338        | )          | —      |            | (157,334,957 | )          | (157,334,957 | )          |
|                                             |       |            |       |        |            |         |       |         |       |
| PARTNERS’  CAPITAL, DECEMBER 31, 2005       |       | 1,770,230       |       | 5,928,997   |            | 390,900,141  |       | 396,829,138  |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Subscriptions                                    |       | 21,575          |       | —      |            | 5,048,863    |       | 5,048,863    |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Net income                                       |       | —          |       | 302,107     |            | 28,086,714   |       | 28,388,821   |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Redemptions                                      |       | (446,808        | )          | (2,623,711  | )               | (101,470,541 | )          | (104,094,252 | )          |
|                                             |       |            |       |        |            |         |       |         |       |
| PARTNERS’  CAPITAL, DECEMBER 31, 2006       |       | 1,344,997       |       | 3,607,393   |            | 322,565,177  |       | 326,172,570  |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Subscriptions                                    |       | 9,109           |       | —      |            | 2,223,503    |       | 2,223,503    |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Net income                                       |       | —          |       | 109,956     |            | 7,014,216    |       | 7,124,172    |       |
|                                             |       |            |       |        |            |         |       |         |       |
| Redemptions                                      |       | (453,053        | )          | (233,997    | )               | (109,531,885 | )          | (109,765,882 | )          |
|                                             |       |            |       |        |            |         |       |         |       |
| PARTNERS’  CAPITAL, DECEMBER 31, 2007       |       | 901,053         |       | $           | 3,483,352       |         | $          | 222,271,011  |       | $ | 225,754,363 |   |

 

See notes tofinancial statements.

 

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ML SELECT FUTURESI L.P.

(A DelawareLimited Partnership)

 

FINANCIAL DATAHIGHLIGHTS

FOR THE YEARSENDED DECEMBER 31, 2007, 2006 and 2005

 

The following perUnit data and ratios have been derived from information provided in thefinancial statements.

 
| ** **                                         | ** ** | **2007** | ** ** | **2006** | ** ** | **2005** | ** ** |
|----------------------------------------------------|------------|----------|------------|----------|------------|----------|------------|
|                                               |       |     |       |     |       |     |       |
| **Per  Unit Operating Performance:**               |       |     |       |     |       |     |       |
|                                               |       |     |       |     |       |     |       |
| Net asset value,  beginning of year                |       | $        | 242.51     |     | $          | 224.17   |       | $ | 234.41 |   |
|                                               |       |     |       |     |       |     |       |
| Realized trading  profit (loss)                    |       | 15.47    |       | 24.28    |       | (6.31    | )          |
| Change in  unrealized                              |       | (3.46    | )          | (3.48    | )          | 1.58     |       |
| Interest income                                    |       | 10.77    |       | 11.23    |       | 6.98     |       |
| Expenses (1)                                       |       | (14.74   | )          | (13.69   | )          | (12.49   | )          |
|                                               |       |     |       |     |       |     |       |
| Net asset value,  end of year                      |       | $        | 250.55     |     | $          | 242.51   |       | $ | 224.17 |   |
|                                               |       |     |       |     |       |     |       |
| **Total  Return:**                                 |       |     |       |     |       |     |       |
|                                               |       |     |       |     |       |     |       |
| Total return                                       |       | 3.31     | %          | 8.18     | %          | -4.37    | %          |
|                                               |       |     |       |     |       |     |       |
| **Ratios  to Average Partners’ Capital (1):** |       |     |       |     |       |     |       |
|                                               |       |     |       |     |       |     |       |
| Expenses                                           |       | 6.24     | %          | 5.95     | %          | 5.88     | %          |
| Net investment  loss                               |       | -1.65    | %          | -1.10    | %          | -2.64    | %          |

 

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(1) Includes the impact of brokerage commission expenses.

 

See notes to financial statements.

 

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ML SELECT FUTURES I L.P.

(A DelawareLimited Partnership)

 

NOTES TO FINANCIALSTATEMENTS

 

1.                    SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

 

Organization

 

ML Select Futures I L.P.(the “Partnership”) was organized under the Delaware Revised Uniform PartnershipAct in August 1995 and commenced trading activities on April 16,1996. The Partnership issues new units of limited partner interest (“Units”) atNet Asset Value as of the beginning of each calendar month. The Partnershipengages in the speculative trading of futures, options on futures and forwardcontracts on a wide range of commodities. Sunrise Capital Partners, LLC (“Sunrise”)is the trading advisor of the Partnership. Merrill Lynch AlternativeInvestments LLC (“MLAI”), is the general partner of the Partnership. MLAI is anindirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. (“MerrillLynch”). Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”),a wholly-owned subsidiary of Merrill Lynch, is the Partnership’s commoditybroker.  MLAI has agreed to maintain ageneral partner’s interest of at least 1% of the total capital in thePartnership.  MLAI and each LimitedPartner share in the profits and losses of the Partnership in proportion totheir respective interests in it.

 

Estimates

 

The preparation offinancial statements in conformity with accounting principles generallyaccepted in the United States of America (“U.S. GAAP”) requires management tomake estimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expensesduring the reporting period.  Actualresults could differ from those estimates.

 

RevenueRecognition

 

Commodity futures,options on futures and forward contract transactions are recorded on the tradedate and open contracts are reflected in Net unrealized profit on opencontracts in the Statements of Financial Condition as the difference betweenthe original contract value and the market value (for those commodity interestsfor which market quotations are readily available) or at fair value.  The change in unrealized profit (loss) onopen contracts from one period to the next is reflected in Change in unrealizedin the Statements of Operations.

 

Foreign CurrencyTransactions

 

The Partnership’sfunctional currency is the U.S. dollar; however, it transacts business incurrencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S.dollar are translated into U.S. dollars at the rates in effect at the dates ofthe Statements of Financial Condition. Income and expense items denominated in currencies other than the U.S.dollar are translated into U.S. dollars at the rates in effect during theperiod.  Gains and losses resulting fromthe translation to U.S. dollars are reported in Realized in the Statements ofOperations.

 

6

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Operating Expensesand Selling Commissions

 

MLAI pays all routineoperating expenses excluding the State of New Jersey filing fee (which is borneby the Partnership) but including legal, accounting, printing, postage andsimilar administrative expenses of the Partnership.  MLAI receives an administrative fee as wellas a portion of the brokerage commissions paid to MLPF&S by the Partnership(see Note 3).

 

No selling commissionshave been or are paid directly by the Limited Partners.  All selling commissions are paid by MLAI.

 

Cash at Broker

 

A portion of the assetsmaintained at MLPF&S is restricted cash required to meet maintenance marginrequirements. Included incash deposits with the broker at December 31, 2007 and 2006 is restrictedcash for margin requirements of $26,426,863 and $92,042,246, respectively.

 

Income Taxes

 

No provision for incometaxes has been made in the accompanying financial statements as each Partner isindividually responsible for reporting income or loss based on such Partner’sshare of the Partnership’s income and expenses as reported for income taxpurposes.

 

Distributions

 

The Limited Partners areentitled to receive, equally per Unit, any distributions which may be made bythe Partnership.  No such distributionshave been declared for the years ended December 31, 2007, 2006 or 2005.

 

Subscriptions

 

Units are offered as ofthe close of business at the end of each month. Units are purchased as of the first business day of any month at NetAsset Value, but the subscription request must be submitted at least threecalendar days before the end of the preceding month.  Subscriptions submitted less than three daysbefore the end of a month will be applied to Unit subscriptions as of thebeginning of the second month after receipt, unless revoked by MLAI.

 

Redemptions

 

A Limited Partner mayredeem some or all of such Partner’s Units at Net Asset Value as of the closeof business on the last business day of any calendar month upon ten days’notice (“notice period”). Units redeemed on or before the end of the twelfthfull month after purchase will be assessed an early redemption charge of 4% oftheir Net Asset Value as of the date of redemption.  If an investor makes multiple investments inthe Partnership, investments are treated on a first-in, first-out basis indetermining whether a redemption charge is applicable. Redemption charges aresubtracted from redemption proceeds and paid to MLAI.

 

7

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Redemptionrequests are accepted within the notice period. The Partnership does not accept any redemption requests after the noticeperiod.  All redemption requests receivedafter the notice period will be processed for the following month.

 

Dissolution of thePartnership

 

The Partnership willterminate on December 31, 2020 or at an earlier date if certain conditionsoccur, as well as under certain other circumstances as set forth in the LimitedPartnership Agreement.

 

Indemnifications

 

In the normal course ofbusiness, the Partnership enters into contracts and agreements that contain avariety of representations and warranties and which provide generalindemnifications.  The Partnership’smaximum exposure under these arrangements is unknown, as this would involvefuture claims that may be made against the Partnership that have not yetoccurred.  The Partnership expects therisk of any future obligation under these indemnifications to be remote.

 

8

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2.               CONDENSED SCHEDULEOF INVESTMENTS

 

The Partnership’s investments, defined as Netunrealized profit on open contracts on the Statements of Financial Condition,as of December 31, 2007 and 2006, are as follows:

 
| **2007**                            | ** ** | **Long Positions**       | ** ** | **Short Positions**           | ** ** | **Net Unrealized**                                | ** ** | ** **                    | ** ** | ** **                         | ** ** |
|-------------------------------------|------------|-------------------------------|------------|------------------------------------|------------|--------------------------------------------------------|------------|-------------------------------|------------|------------------------------------|------------|
| **Commodity Industry  Sector** | ** ** | **Number of  Contracts** | ** ** | **Unrealized  Profit (Loss)** | ** ** | **Percent of   Partners’ Capital** | ** ** | **Number of  Contracts** | ** ** | **Unrealized  Profit (Loss)** | ** ** | **Percent of  Partners’ Capital** | ** ** | **Profit (Loss)  on Open Positions** | ** ** | **Percent of  Partners’ Capital** | ** ** | **Maturity Dates** | ** ** |
|                                |       |                          |       |                               |       |                                                   |       |                          |       |                               |       |   |   |   |   |   |   |   |   |
| Agriculture                         |       | 817                           |       | $                                  | 867,040    |                                                   | 0.38       | %                             | —     |                               | $          | — |   | 0.00 | % | $ | 867,040 |   | 0.38 | % | March 08 |   |
| Currencies                          |       | 542,830                       |       | (2,307,031                         | )          | -1.02                                                  | %          | (6,499,625                    | )          | 1,998,163                          |       | 0.89 | % | (308,868 | ) | -0.14 | % | March 08 |   |
| Interest rates                      |       | 3,427                         |       | 1,560,466                          |       | 0.69                                                   | %          | (1,230                        | )          | (270,050                           | )          | -0.12 | % | 1,290,416 |   | 0.57 | % | March   08 - December 08 |   |
| Energy                              |       | 394                           |       | 2,823,271                          |       | 1.25                                                   | %          | —                        |       | —                             |       | 0.00 | % | 2,823,271 |   | 1.25 | % | January 08  - March 08 |   |
| Metals                              |       | 142                           |       | 10,748                             |       | 0.00                                                   | %          | (484                          | )          | 1,428,066                          |       | 0.63 | % | 1,438,814 |   | 0.64 | % | Febuary  08 - March 08 |   |
| Stock indices                       |       | 117                           |       | 178,051                            |       | 0.08                                                   | %          | (291                          | )          | 1,282,136                          |       | 0.57 | % | 1,460,187 |   | 0.65 | % | March 08 |   |
|                                |       |                          |       |                               |       |                                                   |       |                          |       |                               |       |   |   |   |   |   |   |   |   |
| Total                               |       |                          |       | $                                  | 3,132,545  |                                                   | 1.38       | %                             |       |                               | $          | 4,438,315 |   | 1.97 | % | $ | 7,570,860 |   | 3.35 | % |   |   |

 
| **2006**                            | ** ** | **Long Positions**       | ** ** | **Short Positions**           | ** ** | **Net Unrealized**                                | ** ** | ** **                    | ** ** | ** **                         | ** ** |
|-------------------------------------|------------|-------------------------------|------------|------------------------------------|------------|--------------------------------------------------------|------------|-------------------------------|------------|------------------------------------|------------|
| **Commodity Industry  Sector** | ** ** | **Number of  Contracts** | ** ** | **Unrealized  Profit (Loss)** | ** ** | **Percent of   Partners’ Capital** | ** ** | **Number of  Contracts** | ** ** | **Unrealized  Profit (Loss)** | ** ** | **Percent of  Partners’ Capital** | ** ** | **Profit (Loss)  on Open Positions** | ** ** | **Percent of  Partners’ Capital** | ** ** | **Maturity Dates** | ** ** |
|                                |       |                          |       |                               |       |                                                   |       |                          |       |                               |       |   |   |   |   |   |   |   |   |
| Agriculture                         |       | 205                           |       | $                                  | 84,250     |                                                   | 0.03       | %                             | (814       | )                                  | $          | 857,774 |   | 0.26 | % | $ | 942,024 |   | 0.29 | % | March 07 |   |
| Currencies                          |       | 591,340                       |       | (22,922                            | )          | -0.01                                                  | %          | (25,437,500                   | )          | 3,147,050                          |       | 0.96 | % | 3,124,128 |   | 0.96 | % | March 07 |   |
| Interest rates                      |       | 1,211                         |       | (829,692                           | )          | -0.25                                                  | %          | (5,404                        | )          | 1,287,205                          |       | 0.40 | % | 457,513 |   | 0.14 | % | Feburary 07 - December 07 |   |
| Energy                              |       | 88                            |       | (203,305                           | )          | -0.06                                                  | %          | (1,000                        | )          | 613,820                            |       | 0.19 | % | 410,515 |   | 0.13 | % | Feburary 07 - June 07 |   |
| Metals                              |       | 506                           |       | 1,539,090                          |       | 0.47                                                   | %          | (223                          | )          | 71,455                             |       | 0.02 | % | 1,610,545 |   | 0.49 | % | January 07 - March 07 |   |
| Stock indices                       |       | 2,928                         |       | 2,477,575                          |       | 0.76                                                   | %          | —                        |       | —                             |       | 0.00 | % | 2,477,575 |   | 0.76 | % | March 07 |   |
|                                |       |                          |       |                               |       |                                                   |       |                          |       |                               |       |   |   |   |   |   |   |   |   |
| Total                               |       |                          |       | $                                  | 3,044,996  |                                                   | 0.94       | %                             |       |                               | $          | 5,977,305 |   | 1.83 | % | $ | 9,022,301 |   | 2.77 | % |   |   |

 

No individual contract’s unrealized profit or losscomprised greater than 5% of the Partners’ Capital as of December 31, 2007or 2006.

 

9

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| 3.     | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The Partnership’s U.S.  dollar assets are maintained at MLPF&S. On assets held in U.S. dollars,  Merrill Lynch credits the Partnership with interest at the prevailing 91-day  U.S. Treasury bill rate. The Partnership is credited with interest on any of  its assets and net gains actually held by MLPF&S in non-U.S. dollar  currencies at a prevailing local rate received by Merrill Lynch. Merrill  Lynch may derive certain economic benefit, in excess of the interest, which  Merrill Lynch pays to the Partnership, from possession of such assets.                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Merrill Lynch charges  the Partnership, at prevailing local interest rates, for financing realized  and unrealized losses on the Partnership’s non-U.S. dollar-denominated  positions. Such amounts are netted against interest income due to the  insignificance of such amounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The Partnership pays  brokerage commissions to MLPF&S at a flat monthly rate equal to 0.458 of  1% (a 5.50% annual rate) of the Partnership’s month-end trading assets. The Partnership  pays administrative fees to MLAI at a flat monthly rate equal to 0.021 of 1%  (a 0.25% annual rate) of the Partnership’s month-end trading assets. The  Partnership reimburses MLAI for payment of the actual State of New Jersey  annual filing fee assessed on a per partner basis with a maximum of $250,000  per year which is paid on its behalf. Month-end trading assets are not  reduced, for purposes of calculating brokerage commissions and administrative  fees, by any accrued brokerage commissions, administrative fees, Profit  Shares or other fees or charges. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | MLAI estimates that the  round-turn equivalent commission rate charged to the Partnership during the  years ended December 31, 2007, 2006 and 2005 was approximately $251,  $591 and $370, respectively (not including, in calculating round-turn  equivalents, forward contracts on a futures-equivalent basis).                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | MLPF&S pays Sunrise  a monthly consulting fee of 0.083 of 1% (a 1% annual rate) of the month-end  trading assets, after reduction for a portion of the brokerage commissions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.     | ADVISORY AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The Partnership entered  into an Advisory Agreement with Sunrise. The Advisory Agreement between the  Partnership and Sunrise continues to be in effect, subject to certain renewal  rights exercisable by the Partnership. Sunrise determines the commodity  futures, options on futures and forward contracts traded by the Partnership,  subject to certain trading policies and to certain rights reserved by MLAI.                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Profit Shares equal to  23% of any New Trading Profit, as defined, as of the end of each calendar  year are paid to Sunrise. Profit Shares are also paid out in respect of Units  redeemed (to the extent they exceed the number of Units purchased) as of the  end of interim months during a calendar year, to the extent of the applicable  percentage of any New Trading Profit attributable to such Units.                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 5.     | WEIGHTED AVERAGE UNITS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The weighted average  number of Units outstanding is computed for purposes of calculating net  income (loss) per weighted average Unit. The weighted average number of Units  outstanding for the years ended December 31, 2007, 2006 and 2005 equaled  the Units outstanding as of such date, adjusted proportionately for Units  sold or redeemed based on the respective length of time each was outstanding  during such year.                                                                                                                                                                                                                                                                                                                                                  |

 

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6.              RECENT ACCOUNTING PRONOUNCEMENTS

 

InSeptember 2006, the Financial Accounting Standards Board (“FASB”) issuedStatement of Financial Accounting Standards No. 157, Fair ValueMeasurements (“FAS 157”).  FAS 157 establishes a common definitionfor fair value under U.S. GAAP which establishes a framework for measuring fairvalue and expands disclosure requirements about such fair valuemeasurements.  FAS 157 is effective for fiscal years beginning after November 15,2007.  The Partnership is currently evaluating the impact of adopting FAS 157 on its financialstatements and disclosures.

 

EffectiveJanuary 1, 2007, the Partnership adopted the provisions of the FASBInterpretation No. 48 (“FIN 48’), Accounting for Uncertainty in IncomeTaxes, an interpretation of FASB Statement No. 109. FIN 48 prescribes theminimum recognition threshold a tax position must meet in connection withaccounting for uncertainties in income tax positions taken or expected to betaken by an entity before being measured and recognized in the financialstatements. The implementation of this pronouncement had no impact on thefinancial statements.

 

7.               MARKET AND CREDITRISKS

 

The nature of this Partnership has certainrisks, which cannot all be presented on the financial statements.  The following summarizes some of those risks.

 

Market Risk

 

Derivative instruments involve varyingdegrees of market risk.  Changes in thelevel or volatility of interest rates, foreign currency exchange rates or themarket values of the financial instruments or commodities underlying suchderivative instruments frequently result in changes in the Partnership’s netunrealized profit (loss) on such derivative instruments as reflected in theStatements of Financial Condition.  ThePartnership’s exposure to market risk is influenced by a number of factors,including the relationships among the derivative instruments held by thePartnership as well as the volatility and liquidity of the markets in which thederivative instruments are traded. Investments in foreign markets may also entail legal and politicalrisks.

 

MLAI has procedures in place intended to controlmarket risk exposure, although there can be no assurance that they will, infact, succeed in doing so.  Theseprocedures focus primarily on monitoring the trading of Sunrise, calculatingthe Net Asset Value of the Partnership as of the close of business on each dayand reviewing outstanding positions for over-concentrations.  While MLAI does not itself intervene in themarkets to hedge or diversify the Partnership’s market exposure, MLAI may urgeSunrise to reallocate positions in an attempt to avoid over-concentrations.  However, such interventions are unusual andunless it appears that Sunrise has begun to deviate from past practice ortrading policies or to be trading erratically, MLAI’s basic risk controlprocedures consist simply of the ongoing process of advisor monitoring, withthe market risk controls being applied by Sunrise.

 

Credit Risk

 

The risksassociated with exchange-traded contracts are typically perceived to be lessthan those associated with over-the-counter (non-exchange-traded) transactions,because exchanges typically (but not universally) provide clearinghousearrangements in which the collective credit (in some cases

 

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limited inamount, in some cases not) of the members of the exchange is pledged to supportthe financial integrity of the exchange. In over-the-counter transactions, on the other hand, traders must relysolely on the credit of their respective individual counterparties.  Margins, which may be subject to loss in theevent of a default, are generally required in exchange trading, and counterpartiesmay also require margin in the over-the-counter markets.

 

The credit riskassociated with these instruments from counterparty nonperformance is the netunrealized profit on open contracts, if any, included in the Statements ofFinancial Condition.  The Partnershipattempts to mitigate this risk by dealing exclusively with Merrill Lynchentities as clearing brokers.

 

The Partnership, in its normal course ofbusiness, enters into various contracts, with MLPF&S acting as itscommodity broker.  Pursuant to thebrokerage agreement with MLPF&S (which includes a netting arrangement), tothe extent that such trading results in receivables from and payables toMLPF&S, these receivables and payables are offset and reported as a netreceivable or payable and included in Net unrealized profit on open contractson the Statements of Financial Condition.

 

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*     *    *     *     *    *     *     *    *     *      *

 

To the best of the knowledge and belief ofthe

undersigned, the information contained inthis

reportis accurate and complete.
|   | /s/ Barbra  E. Kocsis |   |
|--------|-----------------------|--------|

Barbra E.Kocsis

Chief Financial Officer

Merrill Lynch Alternative Investments LLC

General Partner of

ML Select Futures I L.P.

 

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