<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

                (x) Annual Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                  For the fiscal year ended: December 31, 1999

                  ( ) Transition Report Pursuant to Section 13
                 or 15(d) of the Securities Exchange Act of 1934


                         Commission file number: 0-22448

                      THE SECTOR STRATEGY FUND (SM) VI L.P.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           Delaware                                          13-3714541
-------------------------------                           ----------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                           Identification No.)

                   c/o Merrill Lynch Investment Partners Inc.
                          Princeton Corporate Campus
                       800 Scudders Mill Road Section 2G
                          Plainsboro, New Jersey 08536
                          ----------------------------
                    (Address of principal executive offices)

         Registrant's telephone number, including area code: (609) 282-6996

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Limited Partnership
                                                            Units


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

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Aggregate market value of the voting and non-voting common equity held by
non-affiliates of the registrant: the registrant is a limited partnership: as of
February 1, 2000, limited partnership units with an aggregate value of
$14,932,066 were outstanding and held by non-affiliates.

                       Documents Incorporated by Reference

The registrant's "1999 Annual Report and Independent Auditors' Report," the
annual report to security holders for the fiscal year ended December 31, 1999,
is incorporated by reference into Part II, Item 8 and Part IV hereof and filed
as an Exhibit herewith.

<PAGE>

                      THE SECTOR STRATEGY FUND (SM) VI L.P.

                       ANNUAL REPORT FOR 1999 ON FORM 10-K


                                Table of Contents
                                -----------------
<TABLE>
<CAPTION>



                                                        PART I                                                 PAGE
                                                        ------                                                 ----

<S>  <C>                                                                                                         <C>
Item 1.       Business......................................................................................     1

Item 2.       Properties....................................................................................     6

Item 3.       Legal Proceedings.............................................................................     7

Item 4.       Submission of Matters to a Vote of Security Holders...........................................     7


                                                       PART II
                                                       -------

Item 5.       Market for Registrant's Common Equity and Related Stockholder Matters.........................     7

Item 6.       Selected Financial Data.......................................................................     8

Item 7.       Management's Discussion and Analysis of Financial Condition and Results of Operations.........    10

Item 7A.      Quantitative and Qualitative Disclosures About Market Risk....................................    14

Item 8:       Financial Statements and Supplementary Data...................................................    14

Item 9:       Changes in and Disagreements with Accountants on Accounting and Financial Disclosure..........    14


                                                       PART III
                                                       --------

Item 10.      Directors and Executive Officers of the Registrant............................................    14

Item 11.      Executive Compensation........................................................................    16

Item 12.      Security Ownership of Certain Beneficial Owners and Management................................    17

Item 13.      Certain Relationships and Related Transactions................................................    18


                                                       PART IV
                                                       -------

Item 14.      Exhibits, Financial Statement Schedules and Reports on Form 8-K...............................    19

</TABLE>


                                       i

<PAGE>

                                     PART I

Item 1:  Business
         --------

         (a)      General Development of Business:
                  --------------------------------

                  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 began trading operations on September 10, 1993. The Fund made a
single offering of its units of limited partnership interest ("Units"). Units
may be redeemed as of the end of each calendar month. The Partnership engages
(currently, through an investment in a limited liability company, see below), in
the speculative trading of a portfolio of futures, options on futures, forwards
and options on forward contracts and related options in the currencies, interest
rates, stock index, metals, agricultural and energy sectors of the world
commodity markets. The Partnership's objective is achieving, through speculative
trading, substantial capital appreciation over time, while also assuring
investors of at least a predetermined minimum Net Asset Value per Unit as of the
Principal Assurance Date.

                  Merrill Lynch Investment Partners Inc. ("MLIP") acts as the
general partner of the Partnership and selects and allocates the Partnership's
assets (through the Partnership's investment in ML Multi-Manager Portfolio LLC
("MM LLC"), see below) among professional advisors ("Advisors"), each
unaffiliated with MLIP and each of which trades independently of the others. The
Partnership and MM LLC are referred to throughout this document, either
individually and/or collectively, as the "Fund". MLIP also determines what
percentage of the Partnership's assets to allocate to trading and what
percentage to hold in reserve. Merrill Lynch Futures Inc. ("MLF") is the
Fund's commodity broker. A portion of the Fund's assets is held by
a commodity broker, other than MLF, to facilitate the trading of a certain
independent advisor. MLIP is a wholly-owned subsidiary of Merrill Lynch Group,
Inc., which, in turn, is a wholly-owned subsidiary of Merrill Lynch & Co., Inc.
("ML&Co."). MLF is an indirect wholly-owned subsidiary of ML&Co. (ML&Co. and its
affiliates are herein sometimes referred to as "Merrill Lynch.")

                   Prior to October 1, 1996, the Partnership placed assets with
the Advisors by opening individual managed accounts with them. For the period
from October 1, 1996 to May 31, 1998, the Partnership placed assets with certain
of the Advisors through investing in private funds ("Trading LLCs") sponsored
by MLIP, through which the trading accounts of different MLIP-sponsored funds
managed by the same Advisor pursuant to the same strategy were consolidated. The
only members of the Trading LLCs were commodity pools sponsored by MLIP. Placing
assets with an Advisor through investing in 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). As of June 1, 1998, MLIP consolidated the trading
accounts of nine of its multi-advisor funds (the "Multi-Advisor Funds"),
including the Fund. The consolidation was achieved by having these Multi-Advisor
Funds invest in a single Delaware limited liability company, MM LLC, 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. The administrative authority over the Partnership, as well as MM
LLC, remains with MLIP. The following disclosures relate to the operation of the
Partnership through its investment in MM LLC.

                  In addition to its investments in MM LLC, the Partnership
maintains a cash account. From time to time, MLIP allocates and reallocates
Partnership assets among its investment in MM LLC and its cash accounts in an
attempt to increase profit potential while limiting the downside risks
associated with futures and forward trading (in order to prevent ML&Co. from
incurring any obligations under its guarantee of a minimum Net Asset Value per
Unit, as described below). Initially, MLIP allocated approximately 30% of the
Partnership's assets to cash and approximately 70% to trading. As of December
31, 1999, 100% was invested in MM LLC.

                  As of December 31, 1999, the Partnership's capitalization was
$15,298,518, and the Net Asset Value of a Unit sold as of September 10, 1993 for
$100 was $121.41.

                                       1
<PAGE>

                  ML&Co. guarantees that the Net Asset Value per Unit will equal
at least $98.27 as of December 31, 2000 (the "Principal Assurance Date"). The
initial Principal Assurance Date was set at approximately five years after
trading commenced. Effective January 1, 1999, the Fund restarted its trading
program for a new Time Horizon of two years' duration, with a second Principal
Assurance Date of December 31, 2000 and a minimum assured Net Asset Value of
$98.27. This guarantee does not prevent substantial investor losses, but rather
serves only as a form of "stop loss," limiting the maximum loss which investors
who retain their Units until the Principal Assurance Date can incur. MLIP will
manage the percentage of assets allocated to trading so as to minimize the
likelihood that payments will be required to be made by ML&Co. pursuant to the
guarantee. As a result, the assets allocated to trading may be reduced or
eliminated if the present value of the guaranteed payments ($100 principal and
all remaining annual fixed-rate dividends) approaches the current value of the
assets in the Fund. If the spread between such present and current values
widens, the assets allocated to trading will increase. The determination of the
percentage of assets allocated to trading is affected by the performance of the
Fund, the level of interest rates used in determining the present value and the
time remaining to the Principal Assurance Date.

                  Through December 31, 1999, the net gain in the Net Asset Value
per Unit was 21.41%. The highest month-end Net Asset Value per Unit was $123.53
(April 30, 1999) and the lowest $92.71 (April 30, 1994).

         (b)      Financial Information about Segments:
                  -------------------------------------

                  The Partnership's business constitutes only one segment for
financial reporting purposes, i.e., a speculative "commodity pool." The
Partnership does not engage in sales of goods or services.

         (c)      Narrative Description of Business:
                  ----------------------------------

                  General

                  The Fund trades in futures, options on futures, forwards and
options on forward contracts in major sectors of the world economy, with the
objective of achieving substantial capital appreciation over time, while
assuring investors of at least a predetermined minimum Net Asset Value per Unit
as of the Principal Assurance Date.

                  MLIP is the Partnership's trading manager, with responsibility
for selecting Advisors to manage MM LLC's assets, allocating and reallocating MM
LLC's assets among different Advisors and determining the percentage of the
Partnership's assets to be invested in MM LLC.

                  Considered as a whole, the Fund trades in a diversified range
of international markets. Certain of the Advisors, considered individually,
concentrate primarily on trading in a limited portfolio of markets. The
composition of the "sectors" included in the Partnership's portfolio varies
substantially over time.

                  MLIP may, from time to time, direct certain individual
Advisors to manage their Fund accounts as if they were managing more equity than
the actual capital allocated to them.

                  One of the objectives of the Fund is to provide
diversification for a limited portion of the risk segment of the Limited
Partners' portfolios. Commodity pool performance has historically often
demonstrated a low degree of performance correlation with traditional stock and
bond holdings. Since it began trading, the Fund's returns have, in fact,
frequently been significantly non-correlated (not, however, negatively
correlated) with the United States stock and bond markets.

                                       2
<PAGE>

                  ML&Co.'s "Principal Protection" Undertaking to the Fund

                  ML&Co., the parent company of the Merrill Lynch organization,
which includes MLIP and MLF, has agreed to contribute sufficient capital to the
Partnership so that it will have adequate funds, after adjustment for all
liabilities to third parties, that the Net Asset Value per Unit will be no less
than $98.27 as of the second Principal Assurance Date (December 31, 2000). This
guarantee, which is effective only as of the Principal Assurance Date, is a
guarantee only of a return of the minimum assured Net Asset Value (plus
distributions, if any), not against the loss of the time value of such
investment or a guarantee of profit. This guarantee is a general, unsecured
obligation of ML&Co.

                  Operation of the Partnership after the Second Principal
                  Assurance Date

                  When the Fund reached its first Principal Assurance Date, MLIP
"restarted" the Fund's trading program, and the ML&Co. guarantee was extended
for a two-year period ending December 31, 2000. MLIP may determine to dissolve
the Partnership as of the Principal Assurance Date, to extend the ML&Co.
guarantee for a certain period of time (resetting the minimum Net Asset Value
per Unit guaranteed by ML&Co.) or to continue to operate the Fund without a
"principal protection" feature. All investors will be given notice by no later
than November 15, 2000 as to what the operation of the Fund (if any) will be
after the Principal Assurance Date.

                  Use of Proceeds and Interest Income

                  Market Sectors. The Fund trades in a diversified group of
                  --------------
markets under the direction of multiple independent Advisors. These Advisors
can, and do, from time to time materially alter the allocation of their overall
trading commitments among different market sectors. Except in the case of
certain trading programs which are purposefully limited in the markets which
they trade, there is essentially no restriction on the commodity interests which
may be traded by any Advisor or the rapidity with which an Advisor may alter its
market sector allocations.

                  Market Types. The Fund trades on a variety of United States
                  ------------
and foreign futures exchanges. Substantially all of the Fund's off-exchange
trading takes place in the highly liquid, institutionally-based currency forward
markets.

                  Many of the Partnership's currency trades are executed in the
spot and forward foreign exchange markets (the "FX Markets") where there are no
direct execution costs. Instead, the participants, banks and dealers, in the FX
Markets take a "spread" between the prices at which they are prepared to buy and
sell a particular currency and such spreads are built into the pricing of the
spot or forward contracts with the Partnership.

                  In its exchange of futures for physical ("EFP") trading, the
Partnership acquires cash currency positions through banks and dealers,
including Merrill Lynch. The Partnership pays a spread when it exchanges these
positions for futures. This spread reflects, in part, the different settlement
dates of the cash and the futures contracts, as well as prevailing interest
rates, but also includes a pricing spread in favor of the banks and dealers,
which may include a Merrill Lynch entity.

                                       3
<PAGE>

                  As in the case of its market sector allocations, the Fund's
commitments to different types of markets -- U.S. and non-U.S., regulated and
unregulated -- differ substantially from time to time as well as over time.

                  The Fund's financial statements contain information relating
to the types of markets traded by the Fund. There can, however, be no assurance
as to which markets the Fund may trade or as to how the Fund's trading may be
concentrated at any one time or over time.

                  Custody of Assets. The majority of the Fund's assets are
                  -----------------
currently held in customer accounts at Merrill Lynch.

                  Interest paid by Merrill Lynch on the Fund's U.S. Dollar and
                  ------------------------------------------------------------
Non U.S. Dollar Assets A majority of the Fund's U.S. dollar assets are
----------------------
maintained at MLF. On assets held in U.S. dollars, Merrill Lynch credits the
Fund with interest at the prevailing 91-day U.S. Treasury bill rate. The Fund 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 Fund, from possession of such assets.

                  Merrill Lynch charges the Fund Merrill Lynch's cost of
financing realized and unrealized losses on the Fund's non-U.S.
dollar-denominated positions.

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

                  Charges

                  The following table summarizes the charges incurred by the
Fund during 1999, 1998 and 1997.

<TABLE>
<CAPTION>


                            1999                         1998                        1997
                 -----------------------------------------------------------------------------------
                              % of Average                % of Average                % of Average
                    Dollar       Month-End       Dollar      Month-End       Dollar      Month-End
    Charges         Amount      Net Assets       Amount     Net Assets       Amount     Net Assets
----------------------------------------------------------------------------------------------------
<S>                        <C>   <C>              <C>         <C>           <C>            <C>
Brokerage                  $0    0.00%            $166,505    0.75%         $519,637       1.89%
Commissions
Administrative              -    0.00%               4,757    0.02%           14,688       0.06%
Fees
Profit Shares               -    0.00%                   -    0.00%            2,914       0.01%
                 -----------------------------------------------------------------------------------
Total                      $0    0.00%            $171,262    0.77%         $537,239       1.96%
                 ===================================================================================
</TABLE>

                  Subsequent to October 1, 1996, Brokerage Commissions,
Administrative Fees and Profit Shares are not representative of the actual
amounts paid by the Fund, because the Fund paid the bulk of these fees as an
investor in the Trading LLCs or MM LLC. See "Description of Current Charges."

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


                                       4
<PAGE>

                  The foregoing table does not reflect the bid-ask spreads paid
by the Fund on its forward trading, or the benefits which may be derived by
Merrill Lynch from the deposit of certain of the Fund's U.S. dollar assets in
offset accounts. See Item 1(c), "Narrative Description of Business -- Use of
Proceeds and Interest Income."

                  The Fund's average month-end Net Assets during 1999, 1998 and
1997 equaled $17,064,997, $22,237,083, and $27,458,616; respectively.

                  Interest income does not represent the actual amounts received
by the Fund since the bulk of the interest was received by the Fund as an
investor in the Trading LLC's or MM LLC. During 1999, the Fund had invested 100%
of its assets in MM LLC.

                  During 1998 and 1997, the Fund earned $289,431 and $790,813
in interest income, or approximately 1.30% and 2.88% of the Fund's average
month-end Net Assets.

                  As of February 1, 1997, the 9.75% per annum Brokerage
Commissions were reduced to 8.75% per annum (0.7291% of the Fund's month-end
assets allocated to trading) and a 0.25% per annum Administrative Fee paid by
the Fund to MLIP.

                  The variations in charges are primarily due to placing assets
in Trading LLCs and MM LLC (See Item 7).

                         Description of Current Charges

<TABLE>
<CAPTION>

<S>                        <C>                                <C>
Recipient                  Nature of Payment                  Amount of Payment
---------                  -----------------                  -----------------

MLF                        Brokerage Commissions              A flat-rate monthly commission of 0.7291 of 1% (an 8.75% annual rate)
                                                              of the Fund's month-end assets committed to trading. As of December
                                                              31, 1999, 100% of the Fund's assets were allocated to trading in
                                                              MM LLC.

                                                              During 1999, the Fund paid round-turn commissions through its
                                                              investment in MM LLC.

                                                              During 1998 and 1997, the round-turn (each purchase and sale or
                                                              sale and purchase of a single futures contract) equivalent rate of the
                                                              Fund's flat-rate Brokerage Commissions were approximately $54 and $56,
                                                              respectively.

MLF                        Use of Fund assets                 Merrill Lynch may derive an economic benefit from the deposit of
                                                              certain of the Fund's U.S. dollar assets in offset accounts.

MLIP                       Administrative Fees                The Fund pays MLIP a monthly Administrative Fee equal to 0.020833 of
                                                              1% of the Fund's month-end assets committed to trading (0.25%
                                                              annually). MLIP pays all of the Fund's routine administrative costs.

MLIB; Other                Bid-ask spreads                    Bid-ask spreads on forward and related trades.
Counterparties

</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
Recipient                  Nature of Payment                  Amount of Payment
---------                  -----------------                  -----------------
<S>                        <C>                                <C>
Advisors                   Profit Shares                      All Advisors can receive quarterly or annually Profit Shares ranging
                                                              from 15% to 25% (depending on the Advisor) of any New Trading Profit
                                                              achieved by their Fund account. Profit Shares are also paid upon
                                                              redemption of Units and upon the net reallocation of assets away from
                                                              an Advisor. New Trading Profit is calculated separately in respect of
                                                              each Advisor, irrespective of the overall performance of the Fund. The
                                                              Fund and MM LLC may pay substantial Profit Shares during periods when
                                                              it is incurring significant overall losses.

Advisors                   Consulting Fees                    MLF currently pays the Advisors annual Consulting Fees ranging 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.

MLF;                       Extraordinary expenses             Actual costs incurred; none paid to date.
  Others
</TABLE>


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


                  Regulation

                  MLIP, the Advisors and MLF are each subject to regulation by
the Commodity Futures Trading Commission (the "CFTC") and the National Futures
Association. Other than in respect of its periodic reporting requirements under
the Securities Exchange Act of 1934, the Partnership itself is generally not
subject to regulation by the Securities and Exchange Commission. However, MLIP
itself is registered as an "investment adviser" under the Investment Advisers
Act of 1940.

                  (i) through (xii) -- not applicable.

                  (xiii)  The Partnership has no employees.

          (d)     Financial Information about Foreign and Domestic Operations
                  -----------------------------------------------------------
                  and Export Sales:
                  -----------------

                  The Fund trades on a number of foreign commodity exchanges.
The Partnership does not engage in the sales of goods or services.

Item 2:  Properties
         ----------

                  The Partnership does not use any physical properties in the
conduct of its business.

                  The Partnership's only place of business is the place of
business of MLIP (Merrill Lynch Investment Partners, Inc., Princeton Corporate
Campus, 800 Scudders Mill Road 2G, Plainsboro, New Jersey, 08536). MLIP performs
all administrative services for the Partnership from MLIP's offices.

                                       6
<PAGE>

Item 3:  Legal Proceedings
         -----------------

                  ML&Co. -- the sole stockholder of Merrill Lynch Group, Inc.
(which is the sole stockholder of MLIP) -- as well as certain of its
subsidiaries and affiliates--have been named as defendants in civil actions,
arbitration proceedings and claims arising out of their respective business
activities. Although the ultimate outcome of these actions cannot be predicted
at this time and the results of legal proceedings cannot be predicted with
certainty, it is the opinion of management that the result of these matters will
not be materially adverse to the business operations or financial condition of
MLIP or the Fund.

                  MLIP itself has never been the subject of any material
litigation.

Item 4:  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

                  The Partnership has never submitted any matter to a vote of
its Limited Partners.

                                     PART II

Item 5:  Market for Registrant's Common Equity and Related Stockholder Matters
         ---------------------------------------------------------------------

Item 5(a)

         (a)      Market Information:
                  -------------------

                  There is no trading market for the Units, nor will one
develop. Rather, Limited Partners may redeem Units as of the end of each month
at Net Asset Value, subject to certain early redemption charges. Units redeemed
prior to the Principal Assurance Date are not entitled to any benefits under the
ML&Co. guarantee.

         (b)      Holders:
                  --------

                  As of December 31, 1999, there were 790 holders of Units,
including MLIP.

         (c)      Dividends:
                  ----------

                  The Partnership has made no distributions, nor does MLIP
presently intend to make any distributions in the future.

Item 5(b)

         Not applicable.

                                       7
<PAGE>

Item 6:  Selected Financial Data
         -----------------------

The following selected financial data has been derived from the audited
financial statements of the Partnership.

<TABLE>
<CAPTION>
                                  For the Year     For the Year     For the Year    For the Year     For the Year
                                     Ended            Ended            Ended            Ended           Ended
                                  December 31,     December 31,     December 31,    December 31,     December 31,
Statement of Operations               1999             1998             1997            1996             1995
--------------------------------------------------------------------------------------------------------------------

Revenues:
<S>                               <C>             <C>               <C>           <C>              <C>
Trading (Loss) Profit
     Realized (Loss) Gain                 $ -       $ (267,771)       $ 222,536     $ 4,174,847      $ 9,810,089
     Change in Unrealized
     (Loss) Gain                            -         (112,024)          51,814      (2,454,976)      (2,396,610)
                                ------------------------------------------------------------------------------------
     Total Trading Results                  -         (379,795)         274,350       1,719,871        7,413,479
                                ------------------------------------------------------------------------------------

Interest Income                             -          289,431          790,813       1,661,887        4,001,380
                                ------------------------------------------------------------------------------------
     Total Revenues                         -          (90,364)       1,065,163       3,381,758       11,414,859
                                ------------------------------------------------------------------------------------

Expenses:
     Brokerage Commissions                  -          166,505          519,637       2,243,462        5,771,415
     Administrative Fees                    -            4,757           14,688          57,524                -
     Profit Shares                          -                -            2,914         434,053        1,086,165
                                ------------------------------------------------------------------------------------
     Total Expenses                         -          171,262          537,239       2,735,039        6,857,580
                                ------------------------------------------------------------------------------------
Income from Investments              (213,362)       1,036,655        1,679,221         984,327                -
                                ------------------------------------------------------------------------------------
Net Income (Loss)                  $ (213,362)       $ 775,029      $ 2,207,145     $ 1,631,046      $ 4,557,279
                                ====================================================================================


Balance Sheet Data
                                  December 31,     December 31,     December 31,    December 31,     December 31,
                                      1999             1998             1997            1996             1995
--------------------------------------------------------------------------------------------------------------------

Fund Net Asset Value              $15,298,518      $19,571,183      $26,918,481     $30,946,907      $50,431,013
Net Asset Value per Unit              $121.41          $122.84          $117.64         $108.85          $104.04
                                ------------------------------------------------------------------------------------
</TABLE>

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

         The variations in income statement line items are primarily due to
investing in Trading LLCs and in MM LLC.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                       MONTH-END NET ASSET VALUE PER UNIT
-----------------------------------------------------------------------------------------------------------------
         Jan.     Feb.     Mar.     Apr.     May     June     July     Aug.    Sept.     Oct.    Nov.     Dec.
-----------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>     <C>      <C>     <C>      <C>       <C>      <C>      <C>      <C>     <C>     <C>
  1995   $95.55   $96.06  $100.28  $101.28 $103.18  $101.04   $98.30   $99.31   $98.71   $97.79  $99.33  $104.04
-----------------------------------------------------------------------------------------------------------------
  1996  $107.43  $103.23  $105.23  $108.01 $104.83  $104.48   $98.33   $99.85  $101.79  $106.19 $110.86  $108.85
-----------------------------------------------------------------------------------------------------------------
  1997  $110.66  $112.34  $112.02  $110.16 $109.61  $110.30  $116.70  $112.09  $115.05  $113.71 $114.47  $117.64
-----------------------------------------------------------------------------------------------------------------
  1998  $117.10  $117.18  $116.93  $112.78 $114.80  $114.98  $115.21  $120.33  $122.49  $122.27 $122.38  $122.84
-----------------------------------------------------------------------------------------------------------------
  1999  $121.29  $122.74  $122.19  $123.53 $122.56  $123.02  $123.26  $122.43  $120.65  $117.35 $120.50  $121.41
-----------------------------------------------------------------------------------------------------------------

</TABLE>

         Pursuant to CFTC policy, monthly performance is presented only from
January 1, 1995 even though units were outstanding prior to such date.

                                       8
<PAGE>

                      THE SECTOR STRATEGY FUND (SM) VI L.P.
                                December 31, 1999

    Type of Pool: Selected-Advisor/Publicly-Offered/"Principal Protected"(1)
                    Inception of Trading: September 10, 1993
                      Aggregate Subscriptions: $108,693,900
                       Current Capitalization: $15,298,518
                    Worst Monthly Drawdown(2): (5.89)% (7/96)
              Worst Peak-to-Valley Drawdown(3): (8.97)% (5/96-7/96)

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

              Net Asset Value per Unit, December 31, 1999: $121.41


-------------------------------------------------------------------------------
                           Monthly Rates of Return(4)
-------------------------------------------------------------------------------
Month                      1999       1998        1997       1996        1995
-------------------------------------------------------------------------------
January                   (1.26)%     (0.46)%     1.66%       3.25%     (1.98)%
-------------------------------------------------------------------------------
February                   1.20        0.07       1.52       (3.91)      0.53
-------------------------------------------------------------------------------
March                     (0.45)      (0.21)     (0.28)       1.94       4.40
-------------------------------------------------------------------------------
April                      1.10       (3.55)     (1.66)       2.64       1.00
-------------------------------------------------------------------------------
May                       (0.79)       1.79      (0.50)      (2.95)      1.88
-------------------------------------------------------------------------------
June                       0.38        0.16       0.63       (0.33)     (2.08)
-------------------------------------------------------------------------------
July                       0.20        0.20       5.80       (5.89)     (2.71)
-------------------------------------------------------------------------------
August                    (0.67)       4.44      (3.95)       1.55       1.03
-------------------------------------------------------------------------------
September                 (1.45)       1.80       2.64        1.95      (0.60)
-------------------------------------------------------------------------------
October                   (2.74)      (0.18)     (1.16)       4.32      (0.93)
-------------------------------------------------------------------------------
November                   2.68        0.09       0.67        4.40       1.58
-------------------------------------------------------------------------------
December                   0.76        0.38       2.77       (1.82)      4.74
-------------------------------------------------------------------------------
Compound Annual
Rate of Return            (1.17)%      4.43%      8.08%       4.62%      6.75%
-------------------------------------------------------------------------------


                  (1) Pursuant to applicable CFTC regulations, a "Multi-Advisor"
fund is defined as one that allocates no more than 25% of its trading assets
(i.e., assets committed to trading) to any single manager. As the Fund may
allocate more than 25% of its trading assets to one or more Advisors, it is
referred to as a "Selected-Advisor" fund. Applicable CFTC regulations define a
"Principal Protected" fund as one which is designed to limit the loss of
participants' initial investment. MLIP's trading leverage policies and the
ML&Co. guarantee limit Limited Partners' losses on their Units to the amount
of the "stop loss" and the time value of their investments over the Time Horizon
from the beginning of trading to the Principal Assurance Date.

                  (2) Worst Monthly Drawdown represents the largest negative
Monthly Rate of Return experienced since January 1, 1995 by the Fund; a drawdown
is measured on the basis of month-end Net Asset Value only, and does not reflect
intra-month figures.

                  (3) Worst Peak-to-Valley Drawdown represents the greatest
percentage decline since January 1, 1995 from a month-end cumulative Monthly
Rate of Return without such cumulative Monthly Rate of Return being equaled or
exceeded as of a subsequent month-end. For example, if the Monthly Rate of
Return was (1)% in each of January and February, 1% in March and (2)% in April,
the Peak-to-Valley Drawdown would still be continuing at the end of April in the
amount of approximately (3)%, whereas if the Monthly Rate of Return had been
approximately 3% in March, the Peak-to-Valley Drawdown would have ended as of
the end of February at approximately the (2)% level.

                  (4) Monthly Rate of Return is the net performance of the Fund
during the month of determination (including interest income and after all
expenses have been accrued or paid) divided by the total equity of the Fund as
of the beginning of such month.

                                       9
<PAGE>

Item 7: Management's Discussion and Analysis of Financial Condition
        -----------------------------------------------------------
        and Results of Operations
        -------------------------

Results of Operations

Advisor Selections
------------------

                  The Fund's results of operations depend on MLIP's ability to
select Advisors and the Advisors' ability to trade profitably. MLIP's selection
procedures and trading leveraging analysis, as well as the Advisors' trading
methods, are confidential, so that substantially the only available information
relevant to the Fund's results of operations is its actual performance record to
date. Because of the speculative nature of its trading, the Fund's past
performance is not necessarily indicative of its future results.

                  MLIP has made and expects to continue making frequent changes
to both trading asset allocations among Advisors and Advisor combinations as
well as from time to time adjusting the percentage of the Fund's assets
committed to trading.

                  MLIP's decision to terminate or reallocate assets among
Advisors is based on a combination of numerous factors. Advisors are, in
general, terminated primarily for unsatisfactory performance, but other factors
-- for example, a change in MLIP's or an Advisor's market outlook, apparent
deviation from announced risk control policies, excessive turnover of positions,
changes in principals, commitment of resources to other business activities,
etc. -- may also have a role in the termination or reallocation decision. The
market judgment and experience of MLIP's principals is an important factor in
its asset allocation decisions.

                  MLIP has no timetable or schedule for making Advisor changes
or reallocations, and generally makes a medium- to long-term commitment to all
Advisors selected. There can be no assurance as to the frequency or number of
Advisor changes that may take place in the future, or as to how long any of the
current Advisors will continue to manage assets for the Fund.

General
-------

                  A number of the Advisors are trend-following traders, whose
programs do not attempt to predict price movements. No fundamental economic
supply or demand analyses are used by these Advisors, and no macroeconomic
assessments of the relative strengths of different national economies or
economic sectors. Instead, the programs apply proprietary computer models to
analyzing past market data, and from this data alone attempt to determine
whether market prices are trending. These technical traders base their
strategies on the theory that market prices reflect the collective judgment of
numerous different traders and are, accordingly, the best and most efficient
indication of market movements. However, there are frequent periods during which
fundamental factors external to the market dominate prices.

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

                  In analyzing the performance of trend-following programs,
economic conditions, political events, weather factors, etc., are not directly
relevant because only market data has any input into trading results.
Furthermore, there is no direct connection between particular market conditions
and price trends. There are so many influences on the markets that the same
general type of economic event may lead to a price trend in some cases but not
in others. The analysis is further complicated by the fact that the programs are
designed to recognize only certain types of trends and to apply only certain
criteria of when a trend has begun. Consequently, even though significant price
trends may occur, if these trends are not comprised of the type of intra-period
price movements which the programs are designed to identify, a trend-following
Advisor may miss the trend altogether.

                                      -10-
<PAGE>

                  In the case of the Advisors which implement strategies which
rely more on discretion and market judgment, it is not possible to predict, from
their performance during past market cycles, how they will respond to future
market events.

Performance Summary

                  This performance summary is an outline description of how the
Fund performed in the past, not necessarily any indication of how it will
perform in the future. In addition, the general causes to which certain price
movements are attributed may or may not in fact have caused such movements, but
simply occurred at or about the same time.

                  The Advisors, as a group, are unlikely to be profitable in
markets in which such trends do not occur. Static or erratic prices are likely
to result in losses. Similarly, unexpected events (for example, a political
upheaval, natural disaster or governmental intervention) can lead to major
short-term losses as well as gains.

                  While there can be no assurance that any Advisor will be
profitable, under any given market condition, markets in which substantial and
sustained price movements occur typically offer the best profit potential for
the Fund.

                  The performance of the Fund is also materially affected by the
percentage of its assets allocated to trading. The greater the percentage of the
Fund's assets allocated to trading, the greater its profit potential, risk and
performance volatility.

         1999

                  During 1999, all of the Fund's assets were invested in MM LLC.
The Fund received trading profits as an investor in MM LLC. The following
commentary for 1999 describes the trading results for MM LLC during the year.

                  The Fund finished 1999 with gains in energy, stock index and
agricultural trading and losses in currency, interest rate and metal trading.
Commodities spent 1999 in a transition phase, shifting from bearishness to a
more neutral position. Lack of demand, particularly in Asia, was the dominant
factor in the overall decline in commodity prices.

                  Overall, the Fund profited from trading in crude oil, heating
oil, and unleaded gas in 1999. Positions in crude oil offset losses from short
positions in natural gas and gas oil trading. In March, OPEC ratified new
production cuts totalling 1.716 million barrels per day at its conference, which
resulted in higher prices for crude. In the natural gas markets, prices rallied
sharply resulting from a decline in U.S. natural gas production, along with high
levels of energy consumption and weather scares throughout the country. Near the
end of the year, there was a continued upward momentum in crude oil reflecting
the tightening between supply and demand and a new, higher OPEC-induced target
price.

                  Stock index trading was profitable for the first half of 1999.
The Dow Jones Industrial Average closed above the 10,000 mark for the first time
ever at the end of March, setting a record for the index, and equity markets
rallied worldwide in April and June. In the second half of the year, the Fund
suffered losses in stock index positions as trading was mixed due to significant
volatility globally. However, there was profitable trading in Hang Seng, Nikkei
225 and Topix Indices which resulted in gains during November and December. Such
activity depicted evidence of Japan's stronger-than-expected recovery coupled
with a sudden decline in its unemployment rate.

                  In agricultural trading, gains in live hogs and live cattle
offset losses in corn positions. Initially, the corn market continued to
struggle due to supply/demand imbalances and ongoing favorable weather in South
America. These factors also led to an increase in prices as there was a sharp
decline in crop ratings during the second half of the year. There was also a
sharp upturn in soy prices, and losses in coffee trading became evident due to
cold temperature and lack of rainfall in Brazil.

                  Currency trading produced losses for the Fund throughout the
year. Long Japanese yen positions resulted in losses despite the yen trading
higher against the dollar. The Bank of Japan lowered rates to keep their economy
sufficiently liquid to allow fiscal spending to restore some growth to the
economy and to drive down the surging yen. The European Central Bank raised the
repo rate in November due to inflation pressures. On a trade-weighted basis, the
Swiss franc ended the first quarter to close at a seven-month low, mostly as a
result of the stronger U.S. dollar. The Canadian dollar also underwent similar
fluctuations throughout the year.

                  Interest rate trading was also volatile as the flight to
quality in the bond market reversed during the first half of 1999 and the
Federal Reserve raised interest rates three times during the year. Early in the
year, interest rate trading proved unprofitable for the fund, which was
triggered by the Japanese Trust Fund Bureau's decision to absorb a smaller share
of futures issues, leaving the burden of financing future budget deficits to the
private sector. Interest rate trading did gain strength at mid-year as the
flight to quality in the bond market reversed and concerns about higher interest
rates in the U.S. continued to rattle the financial markets. During the third
quarter, Eurodollar trading generated losses amidst speculation of the
probability of a tightening by the U.S. Federal Reserve, which became evident
with the higher interest rates in their November 16 meeting due to concerns of
inflation. In December, the yield on the 30-year Treasury bond recently
surpassed its October high propelled by inflation worries and fears the Federal
Reserve might tighten further in 2000.

                  Metals trading was mixed for the year as gold played a major
part in the volatility of the metals market. Gold had failed to maintain its
status as a safety vehicle and a monetary asset during the first half of 1999.
In early June, gold had reached its lowest level in over 20 years. A major
statement from the president of the European Central Bank stated that the member
banks had agreed not to expand their gold lending. This sent gold prices sharply
higher in late September. Unfortunately, the Fund held short positions in gold
futures at that time. Gold prices had stabilized in the fourth quarter following
the price surge. Early in the year, burdensome warehouse stocks and questionable
demand prospects weighed on base metals as aluminum fell to a five-year low and
copper fell to nearly an 11-year low. The economic scenario for Asia, Brazil,
Europe and emerging market nations helped to keep copper and other base metals
on the defensive as demand receded with virtually no supply side response in the
second quarter. A substantial increase in Chinese imports combined with the
recovery in the rest of Asia and Europe had significantly improved demand for
aluminum pushing prices higher during December.

         1998

                                     Total Trading
                                         Results

 Interest Rates                            $  (39,575)
 Stock Indices                               (208,161)
 Commodities                                  (38,600)
 Currencies                                  (103,404)
 Energy                                        37,352
 Metals                                       (27,407)
                                    ------------------
                                           $ (379,795)
                                    ==================


                  Global interest rate markets provided the Fund with its most
profitable positions for the first quarter, particularly in European bonds where
an extended bond market rally continued despite an environment of robust growth
in the United States, Canada and the United Kingdom, as well as a strong pick-up
in growth in continental Europe. In the second quarter, swings in the U.S.
dollar and developments in Japan affected bond markets, causing the Fund's
interest rate trading to result in losses. This was turned around in the third
quarter, as markets worldwide were turned upside down and the Fund's
non-correlation with general equity and debt markets was strongly exhibited, and
trading was particularly profitable in positions in Eurodollars, German and
Japanese bonds, and U.S. Treasury notes and bonds. Global investors staged a
major flight to quality, resulting in a significant widening of credit spreads
on a global basis. In October, investors pushed the yields on U.S. Treasury
bonds to a 31-year low. The long bond yield fell about 75 basis points in 1998
as the world economy slowed more than expected, inflation continued to fall, the
anticipated small U.S. budget deficit turned into substantial surplus, and the
Fed lowered interest rates.

                  In currency markets, results early in the year were mixed, but
unprofitable. During the second quarter, strong gains were realized in positions
in the Japanese yen, which weakened during June to an eight-year low versus the
U.S. dollar. Significant gains from Japanese yen trading continued into the
third quarter, and Japan's problems spread to other sectors of the global
economy, causing commodities prices to decline as demand from the Asian

                                      -11-
<PAGE>

economies weakened. Japan's deepening recession and credit crunch continued
through the fourth quarter, and the Fund achieved gains from long yen positions.

                  In energy markets, demand for crude oil in the Middle East was
affected by low oil prices early in the year, and trading resulted in losses.
Initially buoyed on concerns about a U.S.-led military strike against Iraq,
crude oil fell to a nine-year low, as the globally warm winter, the return of
Iraq as a producer and the Asian economic crisis added to OPEC's supply glut
problems. Despite production cuts initiated by OPEC at the end of March, world
oil supplies remained excessive and oil prices stood at relatively low levels
throughout the first half of 1998. Short heating oil positions in the third
quarter proved profitable for the Fund as the market for heating oil prices
dropped to its lowest level in more than a decade. In early December, oil and
natural gas prices dropped sharply, causing continued problems for many emerging
market countries that depend on commodity exports for economic growth and
government financing. These price pressures were mainly due to excessive supply
availability and near-term weather indications that inventories would remain at
more than adequate levels even in the event of a cold Northern Hemisphere
winter. Also, the December U.S. air attack on Iraq failed to cause any damage to
oil pumping and shipping operations, and oil prices fell over 10%.

                  Trading results in stock index markets were also mixed in
early 1998, despite a strong first-quarter performance by the U.S. equity market
as several consecutive weekly gains were recorded with most market averages
setting new highs. Second quarter results were profitable as the Asia-Pacific
region's equity markets weakened across the board. In particular, Hong Kong's
Hang Seng index trended downward during most of the second quarter and traded at
a three-year low. As U.S. equity markets declined in July and August, the Fund
profited from short positions in the S&P 500, most notably during August, when
the index dropped 14.5%. Volatility in September made for a difficult trading
environment in the stock index sector, and the Fund incurred modest losses,
although results remained profitable for the quarter and the year overall in
these markets

                  Gold prices began the year drifting sideways, and continued to
weaken following news in the second quarter of a European Central Bank consensus
that ten to fifteen percent of reserves should be made up of gold bullion, which
was at the low end of expectations. Gold was unable to extend third quarter
rallies or to build any significant upside momentum, resulting in a trendless
environment. This was also the case in the fourth quarter, as gold's cost of
production declined. Also, silver markets remained range-bound, while also
experiencing a significant selloff in November, and aluminum traded at its
lowest levels since 1994, with many aluminum smelters operating at a loss.

                  In agricultural commodity markets, 1998 began with strong
gains as live cattle and hog prices trended downward throughout the first
quarter. In the second quarter, although the U.S. soybean crop got off to a good
start which contributed to higher yield expectations and a more burdensome
supply outlook, soybean prices traded in a volatile pattern. Sugar futures
maintained mostly a downtrend, as no major buyers emerged to support the market.
Similarly, coffee prices trended downward, as good weather conditions in Central
America and Mexico increased the prospects of more output from these countries.
The third quarter resulted in losses as the U.S. soybean crop increased relative
to the USDA's production estimate as a result of timely rains, which contributed
to lower prices. These losses continued into the fourth quarter as the Fund was
caught on the short side of the soybean complex, as the soybean supply surplus
became more manageable following the November 10th USDA reports, causing prices
to gain upward momentum.

         1997

                                     Total Trading
                                         Results

 Interest Rates                                $ (441)
 Stock Indices                                (39,146)
 Commodities                                  (49,481)
 Currencies                                   288,251
 Energy                                        12,635
 Metals                                        62,532
                                    ------------------
                                            $ 274,350
                                    ==================

                                      -12-
<PAGE>

                  Trend reversals and extreme market volatility, affected by
such factors as the Asian flu and El Nino, were characteristic of most of 1997.
However, the year proved to be a profitable one overall for the Fund as trends
in several key markets enabled the Advisors to profit despite the significant
obstacles. Although trading results in several sectors may have been lackluster,
the global currency and bond markets offered noteworthy trading opportunities,
which resulted in significant profits in these markets during the year.
Additionally, the currency and interest rate sectors of the Fund's portfolio
represented its largest percentage of market commitments.

                  In currency markets, the U.S. dollar rallied and started 1997
on a strong note, rising to a four-year high versus the Japanese yen and
two-and-a-half year highs versus the Deutsche mark and the Swiss franc. However,
the dollar underwent two significant corrections during the year. The first
correction occurred in the Spring against the Japanese yen, due to the G7
finance ministers' determination that a further dollar advance would be
counter-productive to their current goals. From August through mid-November, the
dollar corrected against the Eurocurrencies in advance of a well-advertised
tightening by the Bundesbank. By mid-December the dollar had bounced back to new
highs against the yen and was rallying against the mark.

                  Global interest rate markets began the year on a volatile
note, as investors evaluated economic data for signs of inflation. By the middle
of the year, economic data in key countries was positive indicating lower
inflation and igniting a worldwide rally in the bond markets. Specifically,
investor sentiment was particularly strong in the U.S., where prices on the
30-year Treasury bond and 10-year Treasury note rose to their highest levels in
over two years. This followed a largely positive economic report delivered by
Federal Reserve Chairman Greenspan in testimony before Congress. Effects of the
plunge in the Hong Kong stock market in late October spread rapidly throughout
the world's financial markets, including global bond markets. After continued
volatility in subsequent months made trading difficult, 1997 interest rate
trading ended on a positive note when U.S. and Japanese bond markets rallied as
a flight to safety from plunging stock markets around the world occurred in
December.

                  In energy markets, a slump in crude oil prices was
characteristic of its lackluster performance from the beginning of the year.
Early in 1997, volatility returned in the energy markets, reflecting the impact
of a winter significantly warmer than normal. By mid-year, the decline in prices
reversed sharply as Saudi Arabia and Iran, together representing about 45% of
OPEC's oil production, joined forces to pressure oil-producing nations to stay
within OPEC production quotas. In December, financial and economic problems in
Asia reduced demand for oil, and, in combination with ample supplies, resulted
in crude oil prices declining once again.

Variables Affecting Performance
-------------------------------

                  The principal variables which determine the net performance of
the Fund are gross profitability and interest income. Gross profitability is, in
turn, affected by the percentage of the Fund's assets allocated to trading.

                  During all periods set forth under "Selected Financial Data,"
the interest rates in many countries were at unusually low levels. The low
interest rates in the United States (although higher than in many other
countries) negatively impacted revenues because interest income is typically a
major component of the Fund's profitability. In addition, low interest rates are
frequently associated with reduced fixed income market volatility, and in static
markets the Fund's profit potential generally tends to be diminished. On the
other hand, during periods of higher interest rates, the relative attractiveness
of a high risk investment such as the Fund may be reduced as compared to high
yielding and much lower risk fixed-income investments.

                  The Fund's Brokerage Commissions and Administrative Fees are a
constant percentage of the Fund's assets allocated to trading. The only Fund
costs (other than the insignificant currency trading costs) which are not based
on a percentage of the Fund's assets (allocated to trading or total) are the
Profit Shares payable to the Advisors on an Advisor-by-Advisor basis. Gross
profitability is in turn, affected by the percentage of the Fund's assets
allocated to trading. During periods when Profit Shares are a high percentage of
net trading gains, it is likely that there has been substantial performance
non-correlation among the Advisors (so that the total Profit Shares paid to
those Advisors which have traded profitably are a high percentage, or perhaps
even in excess, of the total profits recognized, as other Advisors have incurred
offsetting losses, reducing overall trading gains but not the Profit Shares paid
to the successful Advisors) -- suggesting the likelihood of generally trendless,
non-consensus markets.

                                      -13-
<PAGE>

                  Unlike many investment fields, there is no meaningful
distinction in the operation of the Fund between realized and unrealized
profits. Most of the contracts traded by the Fund are highly liquid and can be
closed out at any time.

                  Except in unusual circumstances, factors -- regulatory
approvals, cost of goods sold, employee relations and the like -- which often
materially affect an operating business have virtually no impact on the Fund.


Liquidity; Capital Resources

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

                  Substantially all of the Fund's assets are held in cash. The
Net Asset Value of the Fund's cash is not affected by inflation. However,
changes in interest rates could cause periods of strong up or down price trends,
during which the Fund's profit potential generally increases. Inflation in
commodity prices could also generate price movements which the strategies might
successfully follow.

                  Except in very unusual circumstances, the Fund should be able
to close out any or all of its open trading positions and liquidate any or all
of its contracts holdings quickly and at market prices. This permits an Advisor
to limit losses as well as reduce market exposure on short notice should its
strategies indicate doing so. In addition, because there is a readily available
market value for the Fund's positions and assets, the Fund's monthly Net Asset
Value calculations are precise, and investors need only wait 10 business days to
receive the full redemption proceeds of their Units.

Year 2000 Compliance Initiative

                  In 1999, Merrill Lynch completed its efforts to address the
Year 2000 issue (the "Y2K issue"). The Y2K issue was the result of a widespread
programming technique that caused computer systems to identify a date based on
the last two numbers of a year, with the assumption that the first two numbers
of the year are "19". As a result, the year 2000 would be stored as "00",
causing computers to incorrectly interpret the year as 1900. Left uncorrected,
the Y2K issue may have caused serious failures in information technology systems
and other systems.

                  In 1995, Merrill Lynch established the Year 2000 Compliance
Initiative to address the internal and external risks associated with the Y2K
issue. The initiative consisted of six phases, completed by the millennium:
planning, pre-renovation, renovation, production testing, certification, and
integration testing. Contingency plans were established in the event of any
failures or disruptions.

                  Through the date of this filing, there have been no material
failures or disruptions of systems or services at Merrill Lynch attributable to
the Y2K issue. Similarly we have not been notified of any material failure or
disruption of systems or services affecting third parties in their capacity to
transact business with Merrill Lynch or in Merrill Lynch's capacity to transact
business with others. Merrill Lynch continues to monitor the performance of its
systems for any possible future failures or disruptions attributable to the Y2K
issue.

                  As of December 31, 1999, the total estimated expenditures of
existing and incremental resources for the entire Year 2000 Compliance
Initiative was approximately $510 million, including $102 million of occupancy,
communications, and other related overhead expenditures, as Merrill Lynch is
applying a fully costed pricing methodology for this project. At December 31,
1999, of the total estimated expenditures, approximately $12 million, relating
to continued testing, contingency planning, risk management, and the wind down
of the efforts, had not yet been spent.

Item 7A: Quantitative and Qualitative Disclosures About Market Risk
         ----------------------------------------------------------

                  Not applicable.

Item 8:  Financial Statements and Supplementary Data
         -------------------------------------------

                  The financial statements required by this Item are included in
Exhibit 13.01.

                  The supplementary financial information ("selected quarterly
financial data" and "information about oil and gas producing activities")
specified by Item 302 of Regulation S-K is not applicable. MLIP promoted the
Fund and is its controlling person.

Item 9:  Changes in and Disagreements with Accountants on Accounting and
         ---------------------------------------------------------------
         Financial Disclosure
         --------------------

                  There were no changes in or disagreements with independent
auditors on accounting or financial disclosure.

                                    PART III

Item 10:  Directors and Executive Officers of the Registrant
------------------------------------------------------------

         10(a) and 10(b) Identification of Directors and Executive Officers:
                         ---------------------------------------------------

                  As a limited partnership, the Partnership itself has no
officers or directors and is managed by MLIP. Trading decisions are made by the
Advisors on behalf of the Partnership. MLIP promoted the Fund and is its
controlling person.

                  The directors and executive officers of MLIP and their
respective business backgrounds are as follows:

                                      -14-
<PAGE>

John R. Frawley, Jr.         Chairman, Chief Executive Officer,
                             President and Director

Jeffrey F. Chandor           Senior Vice President, Director of
                             Sales, Marketing and Research and Director

Michael L. Pungello          Vice President, Chief Financial Officer and
                             Treasurer

Allen N. Jones               Director

Stephen G. Bodurtha          Director

Michael J. Perini            Director

Steven B. Olgin              Vice President, Secretary and Director of
                             Administration

                  John R. Frawley, Jr. was born in 1943. Mr. Frawley is
Chairman, Chief Executive Officer, President and a Director of MLIP and
Co-Chairman of MLF. He joined Merrill Lynch, Pierce, Fenner & Smith Incorporated
("MLPF&S") in 1966 and has served in various positions, including Retail and
Institutional Sales, Manager of New York Institutional Sales, Director of
Institutional Marketing, Senior Vice President of Merrill Lynch Capital Markets
and Director of International Institutional Sales. Mr. Frawley holds a Bachelor
of Science degree from Canisius College. Mr. Frawley served on the CFTC's
Regulatory Coordination Advisory Committee from its formation in 1990 through
its dissolution in 1994. Mr. Frawley has served four consecutive one-year terms
as Chairman of the Managed Funds Association (formerly, the Managed Futures
Association), a national trade association that represents the managed futures,
hedge funds and fund of funds industry. Mr. Frawley currently serves as a member
of the CFTC's Global Markets Advisory Committee.

                  Jeffrey F. Chandor was born in 1942. Mr. Chandor is Senior
Vice President, Director of Sales, Marketing and Research and a Director of
MLIP. He joined MLPF&S in 1971 and has served as the Product Manager of
International Institutional Equities, Equity Derivatives and Mortgage-Backed
Securities as well as Managing Director of International Sales in the United
States, and Managing Director of Sales in Europe. Mr. Chandor holds a Bachelor
of Arts degree from Trinity College, Hartford, Connecticut. Mr. Chandor is
serving a two-year term as a director of the Managed Funds Association.

                  Michael L. Pungello was born in 1957. Effective May 1, 1999,
Mr. Pungello became Vice President, Chief Financial Officer and Treasurer of
MLIP. He was First Vice President and Senior Director of Finance for Merrill
Lynch's Operations, Services and Technology Group from January 1998 to March
1999. Prior to that, Mr. Pungello spent over 18 years with Deloitte & Touche
LLP, and was a partner in their Financial Services practice from June 1990 to
December 1997. He graduated from Fordham University in 1979 with a Bachelor of
Science degree in accounting and received his Master of Business Administration
degree in Finance from New York University in 1987.

                  Allen N. Jones was born in 1942. Mr. Jones is a Director of
MLIP and, from July 1995 until January 1998, Mr. Jones was also Chairman of the
Board of Directors of MLIP. Mr. Jones graduated from the University of Arkansas
with a Bachelor of Science, Business Administration degree in 1964. Since June
1992, Mr. Jones has held the position of Senior Vice President of MLPF&S. From
June 1992 through February 1994, Mr. Jones was the President and Chief Executive
Officer of Merrill Lynch Insurance Group, Inc. ("MLIG") and remains on the Board
of Directors of MLIG and its subsidiary companies. From February 1994 to April
1997, Mr. Jones was the Director of Individual

                                      -15-
<PAGE>

Financial Services of the Merrill Lynch Private Client Group. In April 1997, Mr.
Jones became the Director of Private Client marketing.

                  Stephen G. Bodurtha was born in 1958. Mr. Bodurtha is a
Director of MLIP. In 1980, Mr. Bodurtha graduated magna cum laude from Wesleyan
University, Middletown, Connecticut with a Bachelor of Arts degree in
Government. From 1980 to 1983, Mr. Bodurtha worked in the Investment Banking
Division of Merrill Lynch. In 1985, he was awarded his Master of Business
Administration degree from Harvard University, where he also served as
Associates Fellow (1985 to 1986). From 1986 to 1989, Mr. Bodurtha held the
positions of Associate and Vice President with Kidder, Peabody & Co.,
Incorporated where he worked in their Financial Futures & Options Group. Mr.
Bodurtha joined MLPF&S in 1989 and has held the position of First Vice President
since 1995. He has been the Director in charge of the Structured Investments
Group of MLPF&S since 1995.

                  Michael J. Perini was born in 1947. Effective May 11, 1999,
Mr. Perini became a Director of MLIP. Since February 1998, Mr. Perini has been
First Vice President and Senior Director of the Defined and Managed Funds Group,
which includes Defined Asset Funds, Special Investments and MLIP. This is part
of the Investment Strategy Product Group of Merrill Lynch Private Client.
Previously Michael Perini was Director of Defined Asset Funds and has held
various management positions since he joined Merrill Lynch in 1970. Mr. Perini
attended St. John's University and New York University as well as the Stanford
University Marketing Management Program. He was elected to the Board of
Governors of the Investment Company Institute in Washington, D.C., and is
Chairman of the Unit Investment Trust Committee of the Institute.

                  Steven B. Olgin was born in 1960. Mr. Olgin is Vice President,
Secretary and the Director of Administration of MLIP. He joined MLIP in July
1994 and became a Vice President in July 1995. From 1986 until July 1994, Mr.
Olgin was an associate of the law firm of Sidley & Austin. In 1982, Mr. Olgin
graduated from The American University with a Bachelor of Science degree in
Business Administration and a Bachelor of Arts degree in Economics. In 1986, he
received his Juris Doctor degree from The John Marshall Law School. Mr. Olgin is
a member of the Managed Funds Association's Government Relations Committee and
has served as an arbitrator for the NFA. Mr. Olgin is also a member of the
Committee on Futures Regulation of the Association of the Bar of the City of New
York.

                  As of December 31, 1999, the principals of MLIP had no
investment in the Fund, and MLIP's general partner interest in the Fund was
valued at $241,975.

                  MLIP acts as general partner to eleven public futures funds
whose units of limited partnership interest are registered under the Securities
Exchange Act of 1934: The Futures Expansion Fund Limited Partnership, ML Futures
Investments II L.P., ML Futures Investments L.P., John W. Henry & Co./Millburn
L.P., The S.E.C.T.O.R. Strategy Fund (SM) L.P., The SECTOR Strategy Fund (SM) II
L.P., The SECTOR Strategy Fund (SM) V L.P., ML Global Horizons L.P., ML
Principal Protection L.P., ML JWH Strategic Allocation Fund L.P. and the Fund.
Because MLIP serves as the sole general partner of each of these funds, the
officers and directors of MLIP effectively manage them as officers and directors
of such funds.

         (c)      Identification of Certain Significant Employees:
                  ------------------------------------------------

                  None.

         (d)      Family Relationships:
                  ---------------------

                  None.

         (e)      Business Experience:
                  --------------------

                  See Item 10(a)(b) above.

         (f)      Involvement in Certain Legal Proceedings:
                  -----------------------------------------

                  None.

         (g)      Promoters and Control Persons:
                  ------------------------------

                  Not applicable.

Item 11:  Executive Compensation
          ----------------------

                  The directors and officers of MLIP are remunerated in their
respective positions. The Partnership does not itself have any officers,
directors or employees. The Fund pays Brokerage Commissions to an

                                      -16-
<PAGE>

affiliate of MLIP and Administrative Fees to MLIP. MLIP or its affiliates may
also receive certain economic benefits from holding the Fund's dollar assets.
The directors and officers receive no "other compensation" from the Partnership,
and the directors receive no compensation for serving as directors of MLIP.
There are no compensation plans or arrangements relating to a change in control
of either the Partnership or MLIP.

Item 12:  Security Ownership of Certain Beneficial Owners and Management
          -------------------------------------------------------------

         (a)      Security Ownership of Certain Beneficial Owners:
                  ------------------------------------------------
<TABLE>
<CAPTION>


                                                     Amount of Nature of
Title of Class    Name of Beneficial Owner           Beneficial Ownership         Percent of Class
--------------    ------------------------           --------------------         ----------------
<S>               <C>                                <C>                          <C>
Limited           City of Milford                    10,200                       8.09%
Partnership       Municipal Employee Pension Fund
Units             70 West River Road
                  Milford, CT  06460
</TABLE>


         (b)      Security Ownership of Management:
                  ---------------------------------

                  As of December 31, 1999, the General Partner owned 1,993 Units
(unit-equivalent general partnership interests), which was 1.58% of the total
Units outstanding.

         (c)      Changes in Control:
                  -------------------

                  None.

                                      -17-
<PAGE>

Item 13:  Certain Relationships and Related Transactions
          ----------------------------------------------

         (a)      Transactions Between Merrill Lynch and the Fund

                  All of the service providers to the Fund, other than the
Advisors, are affiliates of Merrill Lynch. Merrill Lynch negotiated with the
Advisors over the level of its advisory fees and Profit Share. However, none of
the fees paid by the Fund to any Merrill Lynch party were negotiated, and they
are higher than would have been obtained in arms'-length bargaining.

                  The Fund pays Merrill Lynch substantial Brokerage Commissions
and Administrative Fees as well as bid-ask spreads on forward currency trades.
The Fund also pays MLF interest on short-term loans extended by MLF to cover
losses on foreign currency positions.

                  Within the Merrill Lynch organization, MLIP is the direct
beneficiary of the revenues received by different Merrill Lynch entities from
the Fund. MLIP controls the management of the Fund and serves as its promoter.
Although MLIP has not sold any assets, directly or indirectly, to the Fund, MLIP
makes substantial profits from the Fund due to the foregoing revenues.

                  No loans have been, are or will be outstanding between MLIP or
any of its principals and the Fund.

                  MLIP pays substantial selling commissions and trailing
commissions to MLPF&S for distributing the Units. MLIP is ultimately paid back
for these expenditures from the revenues it receives from the Fund.

          (b)     Certain Business Relationships:
                  -------------------------------

                  MLF, an affiliate of MLIP, acts as the principal commodity
broker for the Partnership.

                  In 1999, the Fund expensed the following fees (i) Brokerage
Commissions of $1,518,739 to MLF, which included $192,869 in consulting
fees earned by the Advisors; and (ii) Administrative Fees of $43,393 to MLIP.
In addition, MLIP and its affiliates may have derived certain economic benefits
from possession of the Fund's assets, as well as from foreign exchange and EFP
trading.

                  See Item 1(c), "Narrative Description of Business -- Charges"
and "--Description of Current Charges" for a discussion of other business
dealings between MLIP affiliates and the Partnership.

         (c)      Indebtedness of Management:
                  ---------------------------

                  The Partnership is prohibited from making any loans, to
management or otherwise.

         (d)      Transactions with Promoters:
                  ----------------------------

                  Not applicable.

                                      -18-
<PAGE>

                                     PART IV

Item 14:  Exhibits, Financial Statement Schedules and Reports on Form 8-K
          ---------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
         (a)1.    Financial Statements (found in Exhibit 13.01):
                  ----------------------------------------------

                  Independent Auditors' Report                                                1

                  Statements of Financial Condition as of December 31, 1999 and 1998          2

                  For the years ended December 31, 1999, 1998 and 1997
                           Statements of Operations                                           3
                           Statements of Changes in Partners' Capital                         4

                  Notes to Financial Statements                                               5-12

         (a)2.    Financial Statement Schedules:
                  ------------------------------
</TABLE>


                  Financial statement schedules not included in this Form 10-K
have been omitted for the reason that they are not required or are not
applicable or that equivalent information has been included in the financial
statements or notes thereto.

         (a)3.    Exhibits:
                  ---------

                  The following exhibits are incorporated by reference or are
                  filed herewith to this Annual Report on Form 10-K:

Designation                Description
-----------                -----------

3.01(i)                    Amended and Restated Limited Partnership Agreement
                           of the Partnership.

Exhibit 3.01(i):           Is incorporated herein by reference from
----------------           Exhibit 3.01(i) contained in Amendment No. 1 (as
                           Exhibit A) to the Registration Statement (File No.
                           33-62474) filed on June 28, 1993, on Form S-1 under
                           the Securities Act of 1933 (the "Registrant's
                           Registration Statement").

3.02(ii)                   Amended and Restated  Certificate  of Limited
                           Partnership  of the  Registrant, dated July 27, 1995.

Exhibit 3.02(ii):          Is incorporated herein by reference from
-----------------          Exhibit 3.02(ii) contained in the Registrant's report
                           on Form 10-Q for the Quarter Ended June 30, 1995.

10.01(g)                   Form of Advisory  Agreement  between the
                           Partnership, Merrill Lynch Investment Partners Inc.,
                           Merrill Lynch Futures Inc. and each Advisor.

Exhibit 10.01(g):          Is incorporated herein by reference from
-----------------          Exhibit 10.01(g) contained in the Registrant's report
                           on Form 10-Q for the Quarter Ended June 30, 1995.

10.02                      Form of Consulting  Agreement  between each the
                           Partnership  and Merrill Lynch Futures Inc.

Exhibit 10.02:             Is incorporated  herein by reference from
--------------             Exhibit 10.02  contained in the  Registrant's
                           Registration Statement.

10.03                      Form of Customer Agreement between the Partnership
                           and Merrill Lynch Futures Inc.

                                      -19-
<PAGE>

Exhibit 10.03:             Is incorporated  herein by reference from
--------------             Exhibit 10.03 contained in the Registrant's
                           Registration Statement.

10.05                      Merrill Lynch & Co., Inc. Guarantee.

Exhibit 10.05:             Is incorporated  herein by reference from Exhibit
--------------             10.05  contained in the  Registrant's Registration
                           Statement.

10.07                      Foreign  Exchange Desk Service  Agreement among
                           Merrill Lynch  Investment Bank, Merrill Lynch
                           Investment Partners Inc., Merrill Lynch Futures Inc.
                           and the Fund.

Exhibit 10.07:             Is incorporated  herein by reference from Exhibit
-------------              10.07  contained in the  Registrant's Registration
                           Statement.

10.08(a)                   Form of Advisory and Consulting Agreement Amendment
                           among Merrill Lynch Investment Partners Inc., each
                           Advisor, the Fund and Merrill Lynch Futures Inc.

Exhibit 10.08(a):          Is incorporated herein by reference from
-----------------          Exhibit 10.08(a) contained in the Registrant's report
                           on Form 10-K for the year ended December 31, 1996.

10.08(b)                   Form of Amendment to the Customer Agreement between
                           the Partnership and MLF.

Exhibit 10.08(b):          Is incorporated herein by reference from
-----------------          Exhibit 10.08(b) contained in the Registrant's report
                           on Form 10-K for the year ended December 31, 1996.

13.01                      1999 Annual Report and Independent Auditors' Report.

Exhibit 13.01:             Is filed herewith.
--------------

13.01(a)                   1999 Annual Report and Independent Auditors' Report
                           for the following Trading Limited Liability Company
                           sponsored by Merrill Lynch Investment Partners Inc.:
                           ML Multi Manager Portfolio LLC

Exhibit 13.01(a):          Is  incorporated  herein by reference  from
----------------           Form 10-K  (fiscal year ended  December 31,
                           1998)  Commission  File  number  0-18702  for The
                           S.E.C.T.O.R.  Fund  (SM)  L.P.  (Registration
                           Statement File No. 33-34432 filed on May 25, 1990
                           under the Securities Act of 1933).

28.01                      Prospectus of the Partnership dated June 29, 1993.

Exhibit 28.01:             Is incorporated by reference as filed with the
                           Securities and Exchange Commission pursuant to Rule
                           424 under the Securities Act of 1933, Registration
                           Statement (File No. 33-62474) on Form S-1.

         (b)      Report on Form 8-K:
                  -------------------

            No reports on Form 8-K were filed during the fourth quarter of 1999.

                                     -20-
<PAGE>

                                   SIGNATURES


         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                      THE SECTOR STRATEGY FUND (SM) VI L.P.
                      By:  MERRILL LYNCH INVESTMENT
                      PARTNERS INC.
                      General Partner

                      By: /s/ John R. Frawley, Jr.
                          ------------------------
                            John R. Frawley, Jr.
                            Chairman, Chief Executive Officer, President and
                            Director
                            (Principal Executive Officer)


         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, this report has been signed on March 30, 2000 by the
following persons on behalf of the Registrant and in the capacities indicated.

<TABLE>
<CAPTION>

Signature                            Title                                                       Date
---------                            -----                                                       ----

<S>                                                                                                      <C>
/s/ John R. Frawley, Jr.            Chairman, Chief Executive Officer, President and Director    March 30, 2000
-------------------------------     (Principal Executive Officer)
John R. Frawley, Jr.

/s/ Michael L. Pungello             Vice President, Chief Financial Officer and Treasurer        March 30, 2000
-------------------------------     (Principal Financial and Accounting Officer)
Michael L. Pungello

/s/ Jeffrey F. Chandor              Senior Vice President, Director of Sales,                    March 30, 2000
-------------------------------     Marketing and Research, and Director
Jeffrey F. Chandor

/s/ Michael J. Perini               Director                                                     March 30, 2000
-------------------------------
Michael J. Perini

</TABLE>

(Being the principal executive officer, the principal financial and accounting
officer and a majority of the directors of Merrill Lynch Investment Partners
Inc.)

MERRILL LYNCH INVESTMENT        General Partner of Registrant    March 30, 2000
   PARTNERS INC.

By: /s/ John R. Frawley, Jr.
    ---------------------------
    John R. Frawley, Jr.

                                      -21-
<PAGE>

                      THE SECTOR STRATEGY FUND (SM) VI L.P.

                                 1999 FORM 10-K

                                INDEX TO EXHIBITS
                                -----------------


                           Exhibit
                           -------

Exhibit 13.01              1999 Annual Report and Independent Auditors' Report

                                      -22-