<PAGE>


                                                                   EXHIBIT 13.01

                        ML GLOBAL HORIZONS L.P.
                        (A Delaware Limited Partnership)


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




[LOGO of Merrill Lynch appears here]
<PAGE>

ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
 ------------------------------


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

                                                                            Page
                                                                            ----

INDEPENDENT AUDITORS' REPORT                                                  1

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

  Statements of Financial Condition                                           2

  Statements of Income                                                        3

  Statements of Changes in Partners' Capital                                  4

  Notes to Financial Statements                                             5-9
<PAGE>

INDEPENDENT AUDITORS' REPORT
----------------------------



To the Partners of
ML Global Horizons L.P.:

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

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

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



DELOITTE & TOUCHE LLP



New York, New York
February 4, 2000



<PAGE>

ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
 ------------------------------

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


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

Equity in commodity futures trading accounts:
    Cash and option premiums                                  $      80,686,939     $     106,424,609
    Net unrealized profit on open contracts                             341,454             3,947,083
Accrued interest (Note 2)                                               364,959               407,106
                                                              ------------------    ------------------

                TOTAL                                         $      81,393,352     $     110,778,798
                                                              ==================    ==================


LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
    Brokerage commissions payable (Note 2)                    $         491,752     $         669,289
    Profit Shares payable (Note 3)                                      344,141             1,197,683
    Administrative fees payable (Note 2)                                 16,957                23,079
    Redemptions payable                                               1,397,770             4,299,253
    Incentive Override payable (Note 2)                                   5,555               153,883
                                                              ------------------    ------------------

            Total liabilities                                         2,256,175             6,343,187
                                                              ------------------    ------------------

PARTNERS' CAPITAL:
    General Partner (8,896 Units and 8,298 Units)                     1,481,537             1,356,079
    Limited Partners (466,291 Units and 630,758 Units)               77,655,640           103,079,532
                                                              ------------------    ------------------

            Total partners' capital                                  79,137,177           104,435,611
                                                              ------------------    ------------------

                TOTAL                                         $      81,393,352     $     110,778,798
                                                              ==================    ==================

NET ASSET VALUE PER UNIT
(Based on 475,187 and 639,056 Units Outstanding)              $          166.54     $          163.42
                                                              ==================    ==================

</TABLE>

See notes to financial statements.


                                      -2-
<PAGE>


ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
 ------------------------------

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

<TABLE>
<CAPTION>
                                                             1999               1998                1997
                                                        ---------------    ----------------    ----------------
<S>                                                  <C>                 <C>                 <C>
REVENUES:
    Trading profit:
        Realized                                        $    8,710,125     $    17,962,463     $     6,111,341
        Change in unrealized                                (3,604,366)         (4,718,157)          6,329,441
                                                        ---------------    ----------------    ----------------

            Total trading results                            5,105,759          13,244,306          12,440,782

    Interest income (Note 2)                                 4,451,948           6,051,782           5,278,840
                                                        ---------------    ----------------    ----------------

            Total revenues                                   9,557,707          19,296,088          17,719,622
                                                        ---------------    ----------------    ----------------

EXPENSES:
    Brokerage commissions (Note 2)                           6,790,464           8,970,371           7,727,226
    Profit Shares (Note 3)                                     670,277           3,920,850           1,666,616
    Administrative fees (Note 2)                               234,154             309,323             266,456
    Incentive Override (Note 2)                                  5,555             153,883             289,162
                                                        ---------------    ----------------    ----------------

            Total expenses                                   7,700,450          13,354,427           9,949,460
                                                        ---------------    ----------------    ----------------

NET INCOME                                              $    1,857,257     $     5,941,661     $     7,770,162
                                                        ===============    ================    ================

NET INCOME PER UNIT:
    Weighted average number of General Partner
     and Limited Partner Units outstanding (Note 4)            557,682             797,778             707,741
                                                        ===============    ================    ================

     Net income per weighted average General
       Partner and Limited Partner Unit                 $         3.33     $          7.45     $         10.98
                                                        ===============    ================    ================

</TABLE>

See notes to financial statements.


                                      -3-
<PAGE>


ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
 ------------------------------

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


<TABLE>
<CAPTION>
                                                  General               Limited           Subscriptions
                               Units              Partner              Partners            Receivable              Total
                           ---------------    -----------------     ----------------     ----------------    ------------------
<S>                       <C>                <C>                   <C>                  <C>                <C>
PARTNERS' CAPITAL,
  DECEMBER 31, 1996               588,825     $      1,284,420      $    82,889,121               -          $      84,173,541

Subscriptions                     343,963              177,071           51,177,808               -                 51,354,879

Subscriptions receivable          (12,807)              -                    _                (1,970,485)           (1,970,485)

Redemptions                       (48,764)              -                (7,283,732)              -                 (7,283,732)

Net income                        -                    106,948            7,663,214               -                  7,770,162
                           ---------------    -----------------     ----------------     ----------------    ------------------

PARTNERS' CAPITAL,
  DECEMBER 31, 1997               871,217            1,568,439          134,446,411           (1,970,485)          134,044,365

Subscriptions                      43,666                8,766            6,798,138               -                  6,806,904

Subscriptions receivable           12,807               -                    -                 1,970,485             1,970,485

Redemptions                      (288,634)            (297,142)         (44,030,662)              -                (44,327,804)

Net income                        -                     76,016            5,865,645               -                  5,941,661
                           ---------------    -----------------     ----------------     ----------------    ------------------

PARTNERS' CAPITAL,
  DECEMBER 31, 1998               639,056            1,356,079          103,079,532               -                104,435,611

Subscriptions                         598               96,663               -                                          96,663

Redemptions                      (164,467)              -               (27,252,354)              -                (27,252,354)

Net income                        -                     28,795            1,828,462               -                  1,857,257
                           ---------------    -----------------     ----------------     ----------------    ------------------
PARTNERS' CAPITAL,
  DECEMBER 31, 1999               475,187     $      1,481,537      $    77,655,640      $        _          $      79,137,177
                           ===============    =================     ================     ================    ==================
</TABLE>

See notes to financial statements.

                                      -4-
<PAGE>

ML GLOBAL HORIZONS L.P.
(A Delaware Limited Partnership)
 ------------------------------

NOTES TO FINANCIAL STATEMENTS

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

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Organization
    ------------

    ML Global Horizons L.P. (the "Partnership") was organized as an open-end
    fund under the Delaware Revised Uniform Limited Partnership Act on May 11,
    1993 and commenced trading activities on January 4, 1994. The Partnership
    engages in the speculative trading of futures, options on futures and
    forward contracts on a wide range of commodities. When available for
    investment, the Partnership issues units of limited partnership interest
    ("Units") at Net Asset Value as of the beginning of each month. Merrill
    Lynch Investment Partners Inc. ("MLIP"), a wholly-owned subsidiary of
    Merrill Lynch Group, Inc., which, in turn, is a wholly-owned subsidiary of
    Merrill Lynch & Co., Inc. ("Merrill Lynch"), is the general partner of the
    Partnership. Merrill Lynch Futures Inc. ("MLF"), an affiliate of Merrill
    Lynch, is the Partnership's commodity broker. MLIP has agreed to maintain a
    general partner's interest of at least 1% of the total capital in the
    Partnership. MLIP and each Limited Partner share in the profits and losses
    of the Partnership in proportion to their respective interests in it.

    MLIP selects independent advisors (the "Advisors") to manage the
    Partnership's assets, and allocates and reallocates the Partnership's assets
    among existing, replacement and additional Advisors.

    Estimates
    ---------

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
    statements as well as the reported amounts of revenues and expenses during
    the reporting period. Actual results could differ from those estimates.

    Revenue Recognition
    -------------------

    Commodity futures, options on futures and forward contract transactions are
    recorded on the trade date and open contracts are reflected in net
    unrealized profit on open contracts in the Statements of Financial Condition
    at the difference between the original contract value and the market value
    (for those commodity interests for which market quotations are readily
    available) or at fair value. The change in unrealized profit on open
    contracts from one period to the next is reflected under Trading profit:
    Change in unrealized in the Statements of Income.

    Foreign Currency Transactions
    -----------------------------

    The Partnership's functional currency is the U.S. dollar; however, it
    transacts business in currencies other than the U.S. dollar. Assets and
    liabilities denominated in currencies other than the U.S. dollar are
    translated into U.S. dollars at the rates in effect at the dates of the
    Statements of Financial Condition. Income and expense items denominated in
    currencies other than the U.S. dollar are translated into U.S. dollars at
    the rates in effect during the period. Gains and losses resulting from the
    translation to U.S. dollars are reported in total trading results currently.

                                      -5-
<PAGE>

    Operating Expenses and Selling Commissions
    -------------------------------------------

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

    No selling commissions have been or are paid directly by Limited Partners.
    All selling commissions are paid by MLIP.

    Income Taxes
    ------------

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

    Distributions
    -------------

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

    Redemptions
    -----------

    A Limited Partner may redeem some or all of such Partner's Units at Net
    Asset Value as of the close of business on the last business day of any
    month upon ten calendar days' notice. Units redeemed on or prior to the end
    of the twelfth full month after issuance are assessed an early redemption
    charge of 3% of their Net Asset Value as of the date of redemption. If an
    investor acquires Units at more than one time, such Units are treated on a
    "first-in, first-out" basis for purposes of determining whether redemption
    charges are applicable. Such redemption charges are substrated from
    redemption proceeds and paid to MLIP.

    Dissolution of the Partnership
    ------------------------------

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

2.  RELATED PARTY TRANSACTIONS

    The Partnership's U.S. dollar assets are maintained at MLF. On assets held
    in U.S. dollars, Merrill Lynch credits the Partnership with interest at the
    prevailing 91-day U.S. Treasury bill rate. The Partnership is credited with
    interest on any of its net gains actually held by Merrill Lynch in non-U.S.
    dollar currencies at a prevailing local rate received by Merrill Lynch.
    Merrill Lynch may derive certain economic benefit, in excess of the interest
    which Merrill Lynch pays to the Partnership, from possession of such assets.

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

    The Partnership pays brokerage commission to MLF at a flat rate of .604 of
    1% (a 7.25% annual rate) and the Partnership pays MLIP a monthly
    administrative fee of .021 of 1% (a .25% annual rate) of the Partnership's
    month-end assets. Month-end assets are not reduced, for purposes of
    calculating brokerage commissions and administrative fees, by any accrued
    brokerage commissions, administrative fees, Profit Shares, Incentive
    Overrides or other fees or charges.

                                      -6-
<PAGE>

    MLIP estimates that the round-turn equivalent commission rate charged to the
    Partnership during the years ended December 31, 1999, 1998 and 1997 was
    approximately $106, $62 and $98, respectively (not including, in calculating
    round-turn equivalents, forward contracts on a futures-equivalent basis).

    MLF currently pays the Advisors annual Consulting Fees generally 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.

    The Partnership paid to MLIP an Incentive Override equal to 10% of the Net
    New Gain, as defined, as of December 31, 1999, 1998 and 1997 and will do so
    as of each subsequent December 31 in respect of any Net New Gain then
    outstanding. Such payments are also made to MLIP from the redemption value
    of Units redeemed as of the end of interim months during a year, to the
    extent of any Net New Gain attributable to such Units when redeemed.

    The methods by which Incentive Overrides are calculated may result in
    certain disproportionate allocations of such fees and possible equity
    dilution among Partners purchasing Units at different times.

3.  AGREEMENTS

    The Partnership and the Advisors have each entered into Advisory Agreements.
    These Advisory Agreements generally terminate one year after they are
    entered into, subject to certain renewal rights exercisable by the
    Partnership. The Advisors determine the commodity futures, options on
    futures and forward contract trades to be made on behalf of their respective
    Partnership accounts, subject to certain trading policies and to certain
    rights reserved by MLIP.

    Profit Shares, generally ranging from 15% to 25% of any New Trading Profit,
    as defined, recognized by each Advisor considered individually, irrespective
    of the overall performance of the Partnership, as of either the end of each
    calendar quarter or year and upon the net reallocation of assets away from
    an Advisor, are paid by the Partnership to each Advisor. Profit Shares are
    also paid out in respect of Units redeemed as of the end of interim months,
    to the extent of the applicable percentage of any New Trading Profit
    attributable to such Units.

    The methods by which Profit Shares are calculated may result in certain
    disproportionate allocations of such fees and possible equity dilution among
    Partners purchasing Units at different times.

4.  WEIGHTED AVERAGE UNITS

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



5.  FAIR VALUE AND OFF-BALANCE SHEET RISK

    In June 1998, the Financial Accounting Standards Board issued Statement of
    Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative
    Instruments and Hedging Activities" (the "Statement"), effective for fiscal
    years beginning after June 15, 2000, as amended by SFAS No. 137. This

                                      -7-
<PAGE>
    Instruments and Fair Value of Financial Instruments") and SFAS No. 105
    ("Disclosure of Information about Financial Instruments with Off-Balance
    Sheet Risk and Financial Instruments with Concentrations of Credit Risk")
    whereby disclosure of average aggregate fair values and contract/notional
    values, respectively, of derivative financial instruments is no longer
    required for an entity such as the Partnership which carries its assets at
    fair value. Such Statement sets forth a much broader definition of a
    derivative instrument. MLIP does not believe that the adoption of the
    provisions of such Statement had a significant effect on the financial
    statements.

    SFAS No. 133 defines a derivative as a financial instrument or other
    contract that has all three of the following characteristics: (1) one or
    more underlyings and notional amounts or payment provisions; (2) requires no
    initial net investment or a smaller initial net investment than would be
    required for other types of contracts that would be expected to have a
    similar response to changes in market factors; and, (3) terms that require
    or permit net settlement. Generally, derivatives include futures, forwards,
    swaps, options or other financial instruments with similar characteristics
    such as caps, floors and collars.

    Market Risk
    -----------

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

    MLIP has procedures in place intended to control market risk exposure,
    although there can be no assurance that they will, in fact, succeed in doing
    so. These procedures focus primarily on monitoring the trading of the
    Advisors, calculating the Net Asset Value of the Partnership as of the close
    of business on each day and reviewing outstanding positions for over-
    concentrations. While MLIP does not itself intervene in the markets to hedge
    or diversify the Partnership's market exposure, MLIP may urge the Advisors
    to reallocate positions in an attempt to avoid over-concentrations. However,
    such interventions are unusual. Except in cases in which it appears that the
    Advisors have begun to deviate from past practice or trading policies or to
    be trading erratically, MLIP's basic risk control procedures consist simply
    of the ongoing process of advisor monitoring, with the market risk controls
    being applied by the Advisors themselves.

    Credit Risk
    -----------

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

    The credit risk associated with these instruments from counterparty
    nonperformance is the net unrealized profit, if any, included in the
    Statements of Financial Condition. The Partnership attempts to mitigate
    credit risk by dealing exclusively with Merrill Lynch entities as clearing
    brokers.

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



                                      -8-


<PAGE>

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

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

                           /s/ Michael L. Pungello

                              Michael L. Pungello
                            Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                               General Partner of
                            ML Global Horizons L.P.

                                      -9-