<PAGE>

                                                                   Exhibit 13.01




               THE SECTOR STRATEGY FUND/SM/ VI L.P.
               (A Delaware Limited Partnership)


               Financial Statements for the years ended
               December 31, 1999, 1998 and 1997
               and Independent Auditors' Report








[LOGO OF MERRILL LYNCH]
<PAGE>

THE SECTOR STRATEGY FUND/SM/ VI L.P.
(A Delaware Limited Partnership)


TABLE OF CONTENTS
--------------------------------------------------------------------------------

                                                                            Page

INDEPENDENT AUDITORS' REPORT                                                   1

FINANCIAL STATEMENTS FOR THE YEARS ENDED
  DECEMBER 31, 1999, 1998 AND 1997:

  Statements of Financial Condition                                            2

  Statements of Operations                                                     3

  Statements of Changes in Partners' Capital                                   4

  Notes to Financial Statements                                             5-12
<PAGE>

INDEPENDENT AUDITORS' REPORT



To the Partners of
  The SECTOR Strategy Fund/SM/ VI L.P.:

We have audited the accompanying statements of financial condition of The SECTOR
Strategy Fund/SM/ VI L.P. (the "Partnership") as of December 31, 1999 and 1998,
and the related statements of operations and of changes in partners' capital for
each of the three years in the period ended December 31, 1999. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of The SECTOR Strategy Fund/SM/ VI L.P. as of
December 31, 1999 and 1998, and the results of its operations and changes in
partners' capital for each of the three years in the period ended December 31,
1999 in conformity with generally accepted accounting principles.


DELOITTE & TOUCHE LLP


New York, New York
February 4, 2000
<PAGE>

THE SECTOR STRATEGY FUND/SM/ VI L.P.
(A Delaware Limited Partnership)

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 1999 AND 1998
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSETS                                                           1999                 1998
                                                            ----------------     ----------------

<S>                                                         <C>                  <C>
Investments (Note 6)                                           $ 15,298,518         $ 19,571,183
Receivable from investments (Note 6)                                313,481              438,365
                                                            ----------------     ----------------

                TOTAL                                          $ 15,611,999         $ 20,009,548
                                                            ================     ================


LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
    Redemptions payable                                           $ 313,481            $ 438,365
                                                            ----------------     ----------------

            Total liabilities                                       313,481              438,365
                                                            ----------------     ----------------

PARTNERS' CAPITAL:
    General Partner (1,993 Units and 1,993 Units)                   241,975              244,832
    Limited Partners (124,018 Units and 157,330 Units)           15,056,543           19,326,351
                                                            ----------------     ----------------

            Total partners' capital                              15,298,518           19,571,183
                                                            ----------------     ----------------

                TOTAL                                          $ 15,611,999         $ 20,009,548
                                                            ================     ================

NET ASSET VALUE PER UNIT
(Based on 126,011 and 159,323 Units outstanding)                   $ 121.41             $ 122.84
                                                            ================     ================
</TABLE>

See notes to financial statements

                                      -2-
<PAGE>

THE SECTOR STRATEGY FUND/SM/ VI L.P.
(A Delaware Limited Partnership)

STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

REVENUES:                                                       1999                 1998                1997
                                                            --------------      ---------------      --------------
<S>                                                         <C>                  <C>                 <C>
    Trading profits (loss):
        Realized (Note 1)                                             $ -            $(267,771)          $ 222,536
        Change in unrealized (Note 1)                                   -             (112,024)             51,814
                                                            --------------      ---------------      --------------

            Total trading results                                       -             (379,795)            274,350

     Interest income (Note 2)                                           -              289,431             790,813
                                                            --------------      ---------------      --------------

                Total revenues                                          -              (90,364)          1,065,163
                                                            --------------      ---------------      --------------

EXPENSES:

    Brokerage commissions (Note 2)                                      -              166,505             519,637
    Profit Shares (Note 3)                                              -                    -               2,914
    Administrative fees (Note 2)                                        -                4,757              14,688
                                                            --------------      ---------------      --------------

                Total expenses                                          -              171,262             537,239
                                                            --------------      ---------------      --------------

INCOME (LOSS) FROM INVESTMENTS (Note 6)                          (213,362)           1,036,655           1,679,221
                                                            --------------      ---------------      --------------

NET INCOME (LOSS)                                               $(213,362)           $ 775,029         $ 2,207,145
                                                            ==============      ===============      ==============

NET INCOME (LOSS) PER UNIT:

    Weighted average number of General Partner and
     Limited Partner Units outstanding (Note 4)                   141,425              191,611             256,535
                                                            ==============      ===============      ==============

    Net income (loss) per weighted average
       General Partner and Limited
       Partner Unit                                               $ (1.51)              $ 4.04              $ 8.60
                                                            ==============      ===============      ==============

See notes to financial statements.
</TABLE>

                                      -3-
<PAGE>

THE SECTOR STRATEGY FUND/SM/ VI L.P.
(A Delaware Limited Partnership)

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                       General             Limited
                                     Units             Partner             Partners              Total
                                  -------------     --------------     -----------------    -----------------

<S>                               <C>               <C>                <C>                  <C>
PARTNERS' CAPITAL,
  DECEMBER 31, 1996                    284,313          $ 758,780          $ 30,188,127         $ 30,946,907

Net income                                   -             61,290             2,145,855            2,207,145

Redemptions                            (55,492)                 -            (6,235,571)          (6,235,571)
                                  -------------     --------------     -----------------    -----------------

PARTNERS' CAPITAL,
  DECEMBER 31, 1997                    228,821            820,070            26,098,411           26,918,481

Net income (loss)                            -             (3,763)              778,792              775,029

Redemptions                            (69,498)          (571,475)           (7,550,852)          (8,122,327)
                                  -------------     --------------     -----------------    -----------------

PARTNERS' CAPITAL,
  DECEMBER 31, 1998                    159,323            244,832            19,326,351           19,571,183

Net loss                                     -             (2,857)             (210,505)            (213,362)

Redemptions                            (33,312)                 -            (4,059,303)          (4,059,303)
                                  -------------     --------------     -----------------    -----------------

PARTNERS' CAPITAL,
  DECEMBER 31, 1999                    126,011          $ 241,975          $ 15,056,543         $ 15,298,518
                                  =============     ==============     =================    =================
</TABLE>

See notes to financial statements.

                                      -4-
<PAGE>

THE SECTOR STRATEGY FUND/SM/ VI L.P.
(A Delaware Limited Partnership)

NOTES TO FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

The SECTOR Strategy Fund/SM/ VI L.P. (the "Partnership") was organized under the
Delaware Revised Uniform Limited Partnership Act on April 23, 1993 and commenced
trading activities on September 10, 1993. The Partnership engages (currently,
through an investment in a limited liability company (see below)) in the
speculative trading of futures, options on futures, forwards and options on
forward contracts on a wide range of commodities. Merrill Lynch Investment
Partners Inc. ("MLIP"), a wholly-owned subsidiary of Merrill Lynch Group Inc.,
which, in turn, is a wholly-owned subsidiary of Merrill Lynch & Co., Inc.
("Merrill Lynch"), is the general partner of the Partnership. MLIP has agreed to
maintain a general partnership interest in the Partnership of at least 1% of the
total capital of the Partnership. MLIP and each Limited Partner share in the
profits and losses of the Partnership in proportion to their respective
interests in it.

Many of the multi-advisor funds (the "Multi-Advisor Funds") sponsored by MLIP
allocate their assets to a number of the same independent advisors (the
"Advisors"). However, because different Multi-Advisor Funds had historically
allocated assets to slightly different Advisor groups, the Multi-Advisor Funds
often were required to open and maintain individual trading accounts with each
Advisor. MLIP consolidated the trading accounts of nine of its Multi-Advisor
Funds (including the Partnership) as of June 1, 1998. The consolidation was
achieved by having these Multi-Advisor Funds close their existing trading
accounts and invest in a limited liability company, ML Multi-Manager Portfolio
L.L.C. ("MM LLC"), a Delaware limited liability company, which opened a single
account with each Advisor selected. MM LLC is managed by MLIP, has no investors
other than the Multi-Advisor Funds and serves solely as the vehicle through
which the assets of such Multi-Advisor Funds are combined in order to be managed
through single rather than multiple accounts. The placement of assets into MM
LLC did not change the operations or fee structure of the Partnership;
therefore, the following notes relate to the operation of the Partnership
through its investment in MM LLC. The administrative authority over the
Partnership remains with MLIP. MLIP, on an ongoing basis, may change the number
of Multi-Advisor Funds investing in MM LLC.

MLIP selects the Advisors to manage MM LLC's assets, and allocates and
reallocates such trading assets among existing, replacement and additional
Advisors. Merrill Lynch Futures Inc. ("MLF"), a Merrill Lynch affiliate, is MM
LLC's commodity broker.

MLIP determines what percentage of the Partnership's total capital to invest in
MM LLC attempting to maximize the percentage of the Fund's assets invested in MM
LLC, while managing the Partnership's exposure to prevent Merrill Lynch from
being required to make a payment to the Partnership pursuant to its guarantee
under the Partnership's principal protection (See Note 5).

                                      -5-
<PAGE>

Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
effect 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.

Revenue Recognition

Commodity futures, options on futures, forwards and options on forward contracts
are recorded on the trade date, and open contracts are reflected in net
unrealized profit on open contracts in the Statements of Financial Condition at
the difference between the original contract value and the market value (for
those commodity interests for which market quotations are readily available) or
at fair value. The change in unrealized profit (loss) on open contracts from one
period to the next is reflected in trading (loss) profit: change in unrealized
in the Statements of Operations. As a result of the investment in MM LLC, there
were no open contracts as of December 31, 1999 or 1998. See Note 6 for
discussion of revenue recognition for the Partnership's investment in Trading
LLCs and MM LLC.

Foreign Currency Transactions

The Partnership's functional currency is the U.S. dollar; however, it transacts
business in currencies other than the U.S. dollar through MM LLC. 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 of the 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 the period. Gains and losses resulting from the translation to U.S.
dollars are reported in total trading results.

Operating Expenses

MLIP pays for all routine operating costs (including legal, accounting,
printing, postage and similar administrative expenses) of the Partnership. MLIP
receives an administrative fee as well as a portion of the brokerage commissions
paid to MLF by the Partnership through MM LLC.

Income Taxes

No provision for income taxes has been made in the accompanying financial
statements as each Partner is individually responsible for reporting income or
loss based on such Partner's respective share of the Partnership's income and
expenses as reported for income tax purposes.

Distributions

The Limited Partners are entitled to receive, equally per Unit, any distribution
which may be made by the Partnership. No such distributions had been made as of
December 31, 1999.

Redemptions

A Limited Partner may redeem some or all of such Partner's Units at the Net
Asset Value as of the close of business on the last business day of any month
upon ten calendar days' notice.

                                      -6-
<PAGE>

Dissolution of the Partnership

The Partnership will terminate on December 31, 2023 or at an earlier date if
certain conditions occur, as well as under certain other circumstances as set
forth in the Limited Partnership Agreement.

2. RELATED PARTY TRANSACTIONS

The majority of the Partnership's U.S. dollar assets are maintained at MLF. On
assets held in U.S. dollars, Merrill Lynch credits the Partnership through MM
LLC with interest at the prevailing 91-day U.S. Treasury bill rate. The
Partnership through MM LLC is credited with interest on any of its net gains
actually held by Merrill Lynch 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
through MM LLC, from possession of such assets.

Merrill Lynch charges the Partnership, through MM LLC, Merrill Lynch's cost of
financing realized and unrealized losses on MM LLC's non-U.S. dollar-denominated
positions.

Through its investment in MM LLC, the Partnership pays brokerage commissions to
MLF, at a flat monthly rate equal to .729 of 1% (an 8.75% annual rate) and pays
MLIP a monthly administrative fee of .021 of 1% (a .25% annual rate) of the
Partnership's month-end assets allocated to trading. Assets allocated to trading
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.

Prior to the investment in MM LLC, MLIP estimates that the round-turn equivalent
commission rate charged to the Partnership during the years ended December 31,
1998 and 1997 was approximately $54 and $56, respectively (not including, in
calculating round-turn equivalents, forward contracts on a futures-equivalent
basis).

MLF currently pays the Advisors annual Consulting Fees up to 1.75% of the
Partnership's average month-end assets allocated to them for management, after
reduction for a portion of the brokerage commissions.

3. AGREEMENTS

Pursuant to the Advisory Agreements among the Advisors, MM LLC and MLIP, the
Advisors determined the commodity futures, options on futures, forwards and
options on forward contracts traded on behalf of MM LLC, subject to certain
rights reserved by MLIP. The Advisory Agreements generally terminate one year
after they are entered into, subject to certain renewal rights.

Profit Shares are paid by MM LLC to each Advisor, currently ranging from 20% to
23% of any New Trading Profit, as defined, recognized by each Advisor considered
individually irrespective of the overall performance of the Partnership, either
as of the end of each calendar quarter or year and upon the net reallocation of
assets away from an Advisor. Profit Shares are also paid out in respect of Units
redeemed as of the end of interim months, to the extent of the applicable
percentage of any such New Trading Profit attributable to such Units.

                                      -7-
<PAGE>

4. WEIGHTED AVERAGE UNITS

The weighted average number of Units outstanding was computed for purposes of
disclosing net income per weighted average Unit. The weighted average number of
Units outstanding for the years ended December 31, 1999, 1998 and 1997 equals
the Units outstanding as of such date, adjusted proportionately for Units
redeemed based on the respective length of time each was outstanding during the
year.

5. MERRILL LYNCH & CO., INC. GUARANTEE

Merrill Lynch has guaranteed to the Partnership that it will have sufficient Net
Assets as of the Principal Assurance Date, that the Net Asset Value per Unit as
of such Principal Assurance Date will equal, after adjustment for all
liabilities to third parties, not less than the minimum assured Net Asset Value
per Unit. Effective January 1, 1999, the Partnership restarted its trading
program for an additional Time Horizon of two years' duration and a new
Principal Assurance Date of December 31, 2000, with a minimum assured Net Asset
Value per Unit of $98.27.

6. INVESTMENTS

Prior to investing in MM LLC, the Partnership placed assets under the management
of certain of the Advisors by investing in private limited liability companies
("Trading LLC's) formed by MLIP. The only members of the Trading LLC's were
commodity pools sponsored by MLIP. Each Trading LLC traded under the management
of a single Advisor pursuant to a single strategy at a uniform degree of
leverage. Placing assets with an Advisor through a Trading LLC rather than a
managed account had no economic effect on the Partnership, except to the extent
that the Partnership benefited from the Advisor not having to allocate trades
among a number of different accounts (rather than acquiring a single position
for the Trading LLC as a whole).

The investments in Trading LLC's and MM LLC are reflected in the financial
statements at fair value based upon the Partnership's interest in each Trading
LLC and MM LLC. Fair value is equal to the market value of the net assets of the
Trading LLC's and of MM LLC allocable to the Partnership as an investor. The
resulting difference between cost and fair value is reflected on the Statements
of Operations as Income (loss) from investments.

                                      -8-
<PAGE>

Total revenues and fees with respect to such investments are set forth as
follows:

<TABLE>
<CAPTION>
For the year ended         Total                Brokerage            Administrative             Profit            Income (Loss) from
December 31, 1999         Revenues             Commissions                Fees                  Shares               Investments
------------------    ------------------     ------------------     -----------------     -------------------     ------------------
<S>                   <C>                    <C>                    <C>                   <C>                     <C>
MM LLC                      $ 1,430,498            $ 1,518,739               $ 43,393               $ 81,728             $ (213,362)
                      ==================     ==================     ==================     ==================     ==================


For the year ended         Total                Brokerage            Administrative             Profit            Income (Loss) from
December 31, 1998         Revenues             Commissions                Fees                  Shares               Investments
------------------    ------------------     ------------------     -----------------     -------------------     ------------------

JWH LLC                      $ (613,096)             $ 191,892                $ 5,483                    $ -             $ (810,471)
Chesapeake LLC                  636,803                195,824                  5,595                 87,023                348,361
SJO LLC                         392,486                186,551                  5,330                 22,479                178,126
MM LLC                        2,685,824                929,533                 26,558                409,094              1,320,639
                      ------------------     ------------------     ------------------     ------------------     ------------------
Total                       $ 3,102,017            $ 1,503,800               $ 42,966              $ 518,596            $ 1,036,655
                      ==================     ==================     ==================     ==================     ==================


For the year ended         Total                Brokerage            Administrative             Profit            Income (Loss) from
December 31, 1997         Revenues             Commissions                Fees                  Shares               Investments
------------------    ------------------     ------------------     -----------------     -------------------     ------------------

JWH LLC                     $ 1,516,818              $ 422,946               $ 12,000              $ 127,410              $ 954,462
Chesapeake LLC                  976,710                453,884                 12,850                103,240                406,736
SJO LLC                         731,357                365,509                 10,374                 37,451                318,023
                      ------------------     ------------------     ------------------     ------------------     ------------------
Total                       $ 3,224,885            $ 1,242,339               $ 35,224              $ 268,101            $ 1,679,221
                      ==================     ==================     ==================     ==================     ==================
</TABLE>

Condensed statements of financial condition and statements of operations for MM
LLC, JWH LLC, Chesapeake LLC and SJO LLC are set forth as follows:

<TABLE>
<CAPTION>
                           MM LLC                MM LLC
                     December 31, 1999      December 31, 1998
                     -----------------      -----------------
<S>                  <C>                    <C>
Assets                 $ 100,901,677           $ 125,332,558
                     ================       =================

Liabilities              $ 2,906,392             $ 4,949,082
Members' Capital          97,995,285             120,383,476
                     ----------------       -----------------

Total                  $ 100,901,677           $ 125,332,558
                     ================       =================

                                           For the period from
                    For the year ended       June 1, 1998 to
                     December 31, 1999      December 31, 1998
                    ------------------     -------------------

Revenues                 $ 9,090,190            $ 19,255,343

Expenses                  10,152,017               9,491,842
                     ----------------       -----------------

Net Income (Loss)       $ (1,061,827)            $ 9,763,501
                     ================       =================
</TABLE>

                                      -9-
<PAGE>

<TABLE>
<CAPTION>
                      JWH LLC           Chesapeake LLC            SJO LLC
                  For the period from  For the period from   For the period from
                  January 1, 1998 to   January 1, 1998 to    January 1, 1998 to
                    May 31, 1998           May 31, 1998         May 31, 1998
                  ----------------      -----------------    -------------------

<S>               <C>                   <C>                    <C>
Revenues              $ 1,391,001            $ 1,986,835            $ 1,472,242

Expenses                4,069,362                903,412                802,878
                  ----------------      -----------------      -----------------

Net Income (Loss)    $ (2,678,361)           $ 1,083,423              $ 669,364
                  ================      =================      =================



                      JWH LLC            Chesapeake LLC            SJO LLC
                                                             For the period from
                 For the year ended    For the year ended     January 2, 1997 to
                  December 31, 1997     December 31, 1997      December 31, 1997
                 ------------------    ------------------    -------------------

Revenues             $ 15,279,401            $ 3,480,491            $ 3,903,268

Expenses                6,714,041              2,055,126              2,144,078
                  ----------------      -----------------      -----------------

Net Income (Loss)     $ 8,565,360            $ 1,425,365            $ 1,759,190
                  ================      =================      =================
</TABLE>

7. FAIR VALUE AND OFF-BALANCE SHEET RISK

As of June 1, 1998, the Partnership invested all of its assets in MM LLC.
Accordingly, the Partnership is invested indirectly in derivative instruments,
but does not itself hold any derivative instrument positions. As such, MLIP does
not believe that the adoption of the provisions of Statement of Financial
Accounting Standards No. 133 had a significant effect on the financial
statements of the Partnership. Consequently, no such positions subsequent to May
31, 1998 are reflected in these financial statements.

Market Risk

Derivative financial instruments involve varying degrees of off-balance sheet
market risk. Changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the underlying financial
instruments or commodities underlying such derivative instruments frequently
resulted in changes in the Partnership's net unrealized profit on such
derivative instruments as reflected in the Statements of Financial Condition or,
with respect to Partnership assets invested in Trading LLC's and in MM LLC, the
net unrealized profit as reflected in the respective Statements of Financial
Condition of the Trading LLC's and MM LLC. The Partnership's exposure to market
risk is influenced by a number of factors, including the relationships among the
derivative instruments held by the Partnership, the Trading LLC's and currently
MM LLC, as well as the volatility and liquidity of such markets in which such
derivative instruments are traded.

                                      -10-
<PAGE>

MLIP has procedures in place intended to control market risk exposure, although
there can be no assurance that they will, in fact, succeed in doing so. These
procedures focus primarily on monitoring the trading of the Advisors selected
from time to time for the Partnership or MM LLC, and include adjusting the
percentage of the Partnership's, the Trading LLC's or MM LLC's total assets
allocated to trading, calculating the Net Asset Value of the Advisors'
respective Partnership accounts and Trading LLC accounts, or currently MM LLC
accounts, as of the close of business on each day and reviewing outstanding
positions for over-concentrations both on an Advisor-by-Advisor and on an
overall Partnership basis. While MLIP does not itself intervene in the markets
to hedge or diversify the Partnership's market exposure (although MLIP may
adjust the percentage of the Partnership's total assets allocated to trading),
MLIP may urge Advisors to reallocate positions, or itself reallocate Partnership
assets among Advisors (although typically only as of the end of a month) in an
attempt to avoid over-concentration. However, such interventions are unusual.
Except in cases in which it appears that an Advisor has begun to deviate from
past practice and trading policies or to be trading erratically, MLIP's basic
risk control procedures consist simply of the ongoing process of Advisor
monitoring and selection, with the market risk controls being applied by the
Advisors themselves.

One important aspect of MLIP's risk controls is its adjustments to the leverage
at which the Partnership trades. By controlling the percentage of the
Partnership's assets allocated to trading, MLIP can directly affect the market
exposure of the Partnership. Leverage control is the principal means by which
the General Partner hopes to be able to ensure that Merrill Lynch is never
required to make any payments under its guarantee that the Net Asset Value per
Unit will equal no less than a specified minimum as of the Principal Assurance
Date (See Note 5).

Credit Risk

The risks associated with exchange-traded contracts are typically perceived to
be less than those associated with over-the-counter (non-exchange-traded)
transactions, because exchanges typically (but not universally) provide
clearinghouse arrangements in which the collective credit (in some cases limited
in amount, in some cases not) of the members of the exchange is pledged to
support the financial integrity of the exchange. In over-the-counter
transactions, on the other hand, traders must rely solely on the credit of their
respective individual counterparties. Margins, which may be subject to loss in
the event of a default, are generally required in exchange trading, and
counterparties may require margin in the over-the-counter markets.

The Partnership has credit risk in respect of its counterparties and brokers,
but attempts to control this risk by dealing almost exclusively with Merrill
Lynch entities as counterparties and clearing brokers.

The Partnership, through MM LLC, in its normal course of business, enters into
various contracts, with MLF acting as its commodity broker. Pursuant to the
brokerage agreement with MLF (which includes a netting arrangement), to the
extent that such trading results in receivables from and payables to MLF, these
receivables and payables are offset and reported as a net receivable or payable
in the financial statements of MM LLC in the Equity in commodity future trading
accounts in the Statements of Financial Condition.

                                      -11-
<PAGE>

                           * * * * * * * * * * * * *

                 To the best of the knowledge and belief of the
                 undersigned, the information contained in this
                        report is accurate and complete.

                            /s/ Michael L. Pungello

                               Michael L. Pungello
                             Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                               General Partner of
                       The SECTOR Strategy Fund/SM/ VI L.P.

                                      -12-