<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, 2000
                                       or
                  ( ) Transition Report Pursuant to Section 13
                 or 15(d) of the Securities Exchange Act of 1934

                         Commission file number: 0-23240

                             ML GLOBAL HORIZONS L.P.
             (Exact name of registrant as specified in its charter)

                  DELAWARE                                    13-3716393
       -------------------------------                    ------------------
       (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: the registrant is a limited partnership; as of February 1, 2001,
limited partnership units with an aggregate value of $58,422,234 were
outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE

The registrant's "2000 Annual Report and Independent Auditors' Report," the
annual report to security holders for the fiscal year ended December 31, 2000,
is incorporated by reference into Part II, Item 8 and Part IV hereof and filed
as an Exhibit herewith.


<PAGE>

<TABLE>
<CAPTION>
                             ML GLOBAL HORIZONS L.P.

                       ANNUAL REPORT FOR 2000 ON FORM 10-K

                                TABLE OF CONTENTS


                                   PART I                                                              PAGE
                                                                                                       ----

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

Item 2.     Properties................................................................................    5

Item 3.     Legal Proceedings.........................................................................    5

Item 4.     Submission of Matters to a Vote of Security Holders.......................................    5


                                   PART II

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

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

Item 7.     Management's Discussion and Analysis of Financial Condition and Results of Operations.....    9

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk................................   15

Item 8.     Financial Statements and Supplementary Data...............................................   20

Item 9.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure......   20


                                  PART III

Item 10.    Directors and Executive Officers of the Registrant........................................   20

Item 11.    Executive Compensation....................................................................   22

Item 12.    Security Ownership of Certain Beneficial Owners and Management............................   22

Item 13.    Certain Relationships and Related Transactions............................................   22


                                   PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on Form 8-K...........................   23
</TABLE>


                                      -i-
<PAGE>

                                     PART I

ITEM 1:  BUSINESS

         (a)      GENERAL DEVELOPMENT OF BUSINESS:

                  ML Global Horizons L.P. (the "Fund") was organized under
the Delaware Revised Uniform Limited Partnership Act on May 11, 1993 and
began trading operations on January 4, 1994. The Fund trades in the
international futures and forward markets under the direction of multiple
independent professional advisors (the "Advisors") applying proprietary
strategies. The Fund's objective is to achieve, through speculative trading,
substantial capital appreciation over time.

                  Merrill Lynch Investment Partners Inc. ("MLIP"), organized
in 1986, acts as the general partner of the Fund and allocates the Fund's
assets among Advisors unaffiliated with MLIP, each of which trades
independently of the others. Merrill Lynch Futures Inc. ("MLF") is the Fund's
commodity broker. MLIP is a wholly-owned subsidiary of Merrill Lynch Group,
Inc., which, in turn, is a wholly-owned subsidiary of Merrill Lynch & Co.,
Inc. ("Merrill Lynch"). MLF is an indirect wholly-owned subsidiary of Merrill
Lynch. MLIP, an indirect subsidiary of Merrill Lynch, became a member of
Merrill Lynch Investment Managers ("MLIM") -Alternative Investments Group
during October 2000. MLIM's Alternative Investments Group creates and manages
a variety of alternative investment products, including managed futures
funds, hedge funds, funds of funds, exchange funds and private equity funds.
MLIP is currently intending to convert to a Delaware limited liability
company to be named MLIM Alternative Strategies LLC. This conversion is
expected to occur in 2001.

                  When the Fund is offering its units of limited partnership
interest ("Units"), it receives and processes subscriptions, on a continuous
basis throughout each month. Investors whose subscriptions are accepted during a
month are admitted to the Fund as Limited Partners as of the beginning of the
immediately following month, acquiring Units at the Net Asset Value per Unit as
of the date of admission. Investors' customer securities accounts are debited in
the amount of their subscriptions on a single monthly settlement date within
approximately five business days of the issuance of the Units.

                  As of December 31, 2000, the capitalization of the Fund was
$60,280,800, and the Net Asset Value per Unit, originally $100 as of January 4,
1994, had risen to $179.10.

                  Through December 31, 2000, the highest month-end Net Asset
Value per Unit was $179.10 (December 31, 2000) and the lowest $97.36
(February 28, 1994).

         (b)      FINANCIAL INFORMATION ABOUT SEGMENTS:

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

         (c)      NARRATIVE DESCRIPTION OF BUSINESS:

                  GENERAL

                  The Fund trades in the international futures, options on
futures and forward markets with the objective of achieving substantial capital
appreciation over time.

                  The Fund's assets are allocated and reallocated by MLIP to
the trading management of independent Advisors applying proprietary
strategies in numerous markets.

                  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
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 with the United States stock and
bond markets.

                                      -1-
<PAGE>

                  USE OF PROCEEDS AND INTEREST INCOME

                  SUBSCRIPTION PROCEEDS.

                  MLIP pays from its own funds the selling commissions
relating to the sale of the Units. Accordingly, 100% of the proceeds of Unit
sales are received in cash by the Fund and available for use in its
speculative trading. In such trading, the Fund's assets are used as security
for and to pay the Fund's trading losses, as well as any expenses and
redemptions. The primary use of the proceeds of the sale of the Units is to
permit the Advisors to trade on a speculative basis in a wide range of
different futures, forwards and options on futures markets on behalf of the
Fund. While being used for this purpose, the Fund's assets are also generally
available to earn interest, as more fully described below. The Fund's last
offering of Units was through March 31, 1998, for trading effective April 1,
1998.

                  MARKET SECTORS.

                  The Fund trades in a diversified group of markets under the
direction of multiple independent Advisors. These Advisors from
time to time, materially alter the allocation of their overall trading
commitments among different market sectors. 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 non-exchange trading takes
place in the highly liquid, institutionally-based currency forward markets.

                  Many of the Fund'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 Fund. In its exchange of
futures for physical ("EFP") trading, the Fund acquires cash currency
positions through banks and dealers. The Fund 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.

                  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
non-regulated -- differ substantially from time to time as well as over time.

                  CUSTODY OF ASSETS.

                  All 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

                  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 assets and 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 2000, 1999 and 1998.


                                      -2-
<PAGE>

<TABLE>
<CAPTION>
                                  2000                                1999                               1998
                           --------------------------------------------------------------------------------------------------------

         Charges                 Dollar          % of Average        Dollar        % of Average         Dollar      % of Average
                                 Amount           Month-End          Amount          Month-End          Amount        Month-End
                                                  Net Assets                        Net Assets                       Net Assets
-----------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>             <C>               <C>             <C>                <C>           <C>
Brokerage
Commissions                       $ 4,862,392     7.44%             $ 6,790,464      7.43%             $ 8,970,371      7.44%
Administrative Fee                    167,669     0.26%                 234,154      0.26%                 309,323      0.25%
Profit Shares                         837,948     1.28%                 670,277      0.73%               3,920,850      3.25%
Incentive Override                          -     0.00%                   5,555      0.01%                 153,883      0.13%
                           --------------------------------------------------------------------------------------------------------
Total                             $ 5,868,009     8.98%             $ 7,700,450      8.42%            $ 13,354,427     11.07%
                           ========================================================================================================
</TABLE>


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

                  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 available
assets maintained at MLF.

                  The Fund's average month-end Net Assets during 2000, 1999 and
1998 equaled $65,365,539, $91,419,778 and $120,645,332, respectively.

                  During 2000, 1999 and 1998, the Fund earned $3,939,708,
$4,451,948 and $6,051,782, respectively, in interest income, or approximately
6.03%, 4.87% and 5.02%, of the Fund's average month-end Net Assets.

                  A 7.25% per annum Brokerage Commissions is paid by the Fund to
MLF and a 0.25% per annum Administrative Fees are paid by the Fund to MLIP.


                                      -3-
<PAGE>


<TABLE>
<CAPTION>
                         DESCRIPTION OF CURRENT CHARGES

RECIPIENT            NATURE OF PAYMENT                  AMOUNT OF PAYMENT
<S>                  <C>                                <C>
MLF                  Brokerage Commissions              A flat-rate monthly commission of 0.6041 of 1% of
                                                        the Fund's month-end assets (a 7.25% annual rate).
                                                        During 2000, 1999 and 1998, 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 was approximately
                                                        $128, $106 and $62, respectively.

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

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


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

MLIP                 Annual Incentive Overrides         Paid by the Fund as a whole on an annual basis and
                                                        by reduction of the Net Asset Value of Units when
                                                        redeemed. The Incentive Override equals 10% of any
                                                        Net New Gain (as defined). Units may generate Net
                                                        New Gain and be subject to paying an Incentive
                                                        Override even though the net asset value per Unit
                                                        has declined below the purchase price of such
                                                        Units.

Advisors             Profit Shares                      All Advisors can receive quarterly or annual Profit
                                                        shares ranging from 15% to 23% (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 may pay
                                                        substantial Profit Shares during periods when it
                                                        is incurring significant overall losses.

Advisors             Consulting fees                    MLF pays the Advisors annual Consulting Fees
                                                        generally ranging up to 2% of the Fund'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>


                                      -4-
<PAGE>

                  REGULATION

                  MLIP, the Advisors and MLF are each subject to regulation
by the Commodity Futures Trading Commission (the "CFTC") and the National
Futures Association ("NFA"). Other than in respect of its periodic reporting
requirements under the Securities Exchange Act of 1934, and the registration
of the Units for continuous public distribution under the Securities Act of
1933, the Fund 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 Fund has no employees.

         (d)      FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

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

ITEM 2:  PROPERTIES

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

                  The Fund's only place of business is the place of business
of MLIP, Princeton Corporate Campus, 800 Scudders Mill Road-Section 2G,
Plainsboro, New Jersey 08536. MLIP performs all administrative services for
the Fund from MLIP's offices.

ITEM 3:  LEGAL PROCEEDINGS

                  Merrill Lynch -- 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 Fund has never submitted any matters 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 established public trading market for the Units,
nor will one develop. Limited Partners may purchase or redeem Units as
of the end of each month at Net Asset Value, subject to certain early redemption
charges.

   (b)     HOLDERS:

                   As of December 31, 2000, there were 2,180 holders of
Units, including MLIP.

                                      -5-
<PAGE>

   (c)     DIVIDENDS:

            The Fund has made no distributions since trading commenced, nor does
MLIP presently intend to make any distributions in the future.

   Item 5(b)

           Not applicable.


ITEM 6:  SELECTED FINANCIAL DATA

The following selected financial data has been derived from the audited
financial statements of the Fund:

<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,
INCOME STATEMENT DATA                2000                 1999               1998               1997               1996
-----------------------------------------------------------------------------------------------------------------------------

<S>                             <C>                  <C>                <C>                 <C>               <C>
Revenues:

Trading profit (loss)
     Realized                      $ 1,325,278        $ 8,710,125        $ 17,962,463        $ 6,111,341        $ 20,458,327
     Change in Unrealized            4,703,837         (3,604,366)         (4,718,157)         6,329,441          (3,294,990)
                                ---------------------------------------------------------------------------------------------
        Total Trading Results        6,029,115          5,105,759          13,244,306         12,440,782          17,163,337
                                ---------------------------------------------------------------------------------------------

Interest Income                      3,939,708          4,451,948           6,051,782          5,278,840           3,978,137
                                ---------------------------------------------------------------------------------------------

     Total Revenues                  9,968,823          9,557,707          19,296,088         17,719,622          21,141,474
                                ---------------------------------------------------------------------------------------------

Expenses:
     Brokerage Commissions           4,862,392          6,790,464           8,970,371          7,727,226           6,646,004
     Profit Shares                     837,948            670,277           3,920,850          1,666,616           1,808,020
     Administrative Fees               167,669            234,154             309,323            266,456              57,091
     Incentive Override                      -              5,555             153,883            289,162             834,271
                                ---------------------------------------------------------------------------------------------
     Total Expenses                  5,868,009          7,700,450          13,354,427          9,949,460           9,345,386
                                ---------------------------------------------------------------------------------------------
Net Income                         $ 4,100,814        $ 1,857,257         $ 5,941,661        $ 7,770,162        $ 11,796,088
                                =============================================================================================
</TABLE>


<TABLE>
<CAPTION>
BALANCE SHEET DATA               December 31, 2000  December 31, 1999   December 31, 1998   December 31, 1997    December 31, 1996
------------------------------------------------------------------------------------------------------------------------------------

<S>                              <C>                <C>                 <C>                 <C>                  <C>
Fund Net Asset Value                $ 60,280,800       $ 79,137,177       $ 104,435,611        $ 134,044,365        $ 84,173,541
Net Asset Value per Unit            $     179.10       $     166.54       $      163.42        $      153.86        $     142.95
                                ====================================================================================================
</TABLE>



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


                                      -6-
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                         MONTH-END NET ASSET VALUE PER INITIAL 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>
   1996   $125.91  $117.82   $119.43   $128.54  $123.56   $127.71   $123.72   $124.28  $128.97   $138.94   $146.22   $142.95
-----------------------------------------------------------------------------------------------------------------------------
   1997   $146.53  $151.84   $152.92   $149.41  $146.53   $146.46   $155.70   $148.90  $149.80   $147.06   $148.57   $153.86
-----------------------------------------------------------------------------------------------------------------------------
   1998   $154.11  $155.99   $156.90   $148.38  $148.82   $148.13   $146.66   $154.13  $157.43   $159.62   $162.62   $163.42
-----------------------------------------------------------------------------------------------------------------------------
   1999   $162.48  $163.98   $164.50   $167.59  $166.73   $169.02   $169.11   $168.78  $167.51   $161.64   $165.99   $166.54
-----------------------------------------------------------------------------------------------------------------------------
   2000   $168.83  $168.54   $164.59   $162.97  $166.07   $162.44   $161.84   $162.80  $160.30   $160.21   $169.32   $179.10
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                      -7-
<PAGE>

                             ML GLOBAL HORIZONS L.P.
                                DECEMBER 31, 2000

  TYPE OF POOL: Selected-Advisor/Publicly-Offered/Non-"Principal Protected"(1)
                      INCEPTION OF TRADING: January 4, 1994
                      AGGREGATE SUBSCRIPTIONS: $174,343,595
                       CURRENT CAPITALIZATION: $60,280,800
                    WORST MONTHLY DRAWDOWN(2): (6.42)% (2/96)
              WORST PEAK-TO-VALLEY DRAWDOWN(3): (6.52)% (4/98-7/98)
                                  -------------

              NET ASSET VALUE PER UNIT, DECEMBER 31, 2000: $179.10

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
                      MONTHLY RATES OF RETURN(4)
------------------------------------------------------------------------------
Month                    2000        1999        1998       1997       1996
------------------------------------------------------------------------------
<S>                       <C>         <C>        <C>        <C>         <C>
January                   1.38%       (0.58)%    0.16%      2.50%       1.25%
------------------------------------------------------------------------------
February                  (0.17)       0.92       1.22       3.62       (6.42)
------------------------------------------------------------------------------
March                     (2.34)       0.32       0.58       0.71        1.37
------------------------------------------------------------------------------
April                     (0.99)       1.88      (5.43)     (2.30)       7.63
------------------------------------------------------------------------------
May                        1.91       (0.51)      0.30      (1.93)      (3.87)
------------------------------------------------------------------------------
June                      (2.19)       1.37      (0.46)     (0.05)       3.35
------------------------------------------------------------------------------
July                      (0.37)       0.05      (0.99)      6.31       (3.12)
------------------------------------------------------------------------------
August                     0.59       (0.20)      5.09      (4.37)       0.45
------------------------------------------------------------------------------
September                 (1.53)      (0.75)      2.14       0.60        3.77
------------------------------------------------------------------------------
October                   (0.06)      (3.50)      1.39      (1.83)       7.73
------------------------------------------------------------------------------
November                   5.69        2.69       1.88       1.03        5.24
------------------------------------------------------------------------------
December                   5.77        0.33       0.49       3.56       (2.24)
------------------------------------------------------------------------------
Compound Annual           7.54%       1.91%      6.22%       7.61%      14.96%
Rate of Return
------------------------------------------------------------------------------
</TABLE>

                  (1) Pursuant to applicable CFTC regulations, a "Multi-Advisor"
fund is defined as one that allocates no more than 25% of its trading assets to
any single manager. As the Fund currently allocates more than 25% of its trading
assets to one or more Advisors, it is referred to as a "Selected-Advisor" fund.
Certain funds, including funds sponsored by MLIP, are structured so as to
guarantee to investors that their investment will be worth no less than a
specified amount (typically, the initial purchase price) as of a date certain
after the date of investment. The CFTC refers to such funds as "Principal
Protected." The Fund has no such feature.

                  (2) Worst Monthly Drawdown represents the largest negative
Monthly Rate of Return experienced since January 1, 1996 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, 1996 from a month-end cumulative Monthly
Rate of Return without such cumulative Monthly Rate of Return being equalled
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.

                                      -8-
<PAGE>

                  (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.

ITEM 7:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         OPERATIONAL OVERVIEW; 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, 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. However, because of the
speculative nature of its trading, the Fund's past performance is not
necessarily indicative of its future results.

                  MLIP's decision to terminate or reallocate assets among
Advisors is based on a combination of 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
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. In particular, MLIP has to date made significantly fewer
reallocations of trading assets and adjustments in the Advisor combinations for
the Fund than in the case of many of MLIP's multi-advisor funds. However, 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.

         RESULTS OF OPERATIONS

                  GENERAL.

                  MLIP believes that selected-advisor futures funds should be
regarded as medium- to long-term (i.e., three to five year) investments, but
it is difficult to identify trends in the Fund's operations and virtually
impossible to make any predictions regarding future results based on the
results to date. An investment in the Fund may be less successful over a
longer than a shorter period.

                  Markets with sustained price trends tend to be more favorable
to managed futures investments than whipsaw, choppy markets, but (i) this is not
always the case, (ii) it is impossible to predict when price trends will occur
and (iii) different Advisors are affected differently by trending markets as
well as by particular types of trends.

                  MLIP attempts to control credit risk in the Fund's futures,
forward and options trading by trading only through MLF. MLF acts solely as a
broker or counterparty to the Fund's trades; it does not advise with respect to,
or direct, any such trading.

                  MLIP attempts to control the market risk inherent in the
Fund's trading by MLIP's selected-advisor strategy and Advisor selections.
MLIP reviews the positions acquired by the Advisors on a daily basis in an
effort to determine whether the overall positions of the Fund may have become
what MLIP determines as being excessively concentrated in a limited number of
markets -- in which case MLIP may, as of the next month-end or quarter-end,
adjust the Fund's Advisor combination and/or allocations so as to attempt to
reduce the risk of such over-concentration occurring in the future.

                  MLIP may consider making distributions to investors under
certain circumstances (for example, if substantial profits are recognized);
however, MLIP has not done so to date and does not presently intend to do so.


                                      -9-
<PAGE>

         PERFORMANCE SUMMARY

         2000
<TABLE>
<CAPTION>
                                      Total Trading
                                         Results
<S>                                 <C>
 Interest Rates                           $ 2,464,097
 Stock Indices                             (2,254,151)
 Commodities                                  151,043
 Currencies                                 3,947,684
 Energy                                     2,081,146
 Metals                                      (360,704)
                                    ------------------
                                          $ 6,029,115
                                    ==================
</TABLE>

                  The Fund's overall trading strategy was profitable in 2000.
Trading in the Currency, Interest Rate, Energy and Commodity markets was
successful, while losses were realized in the Stock Indices and Metal markets.
The majority of the Fund's profits were realized in November and December.

                  Currency trading started slowly but was profitable by
year-end. The Euro declined against the U.S. dollar after officials from the
Group of Seven met and failed to express concern about its low levels. Other
factors for its decline include the slow pace of microeconomic reform in
Europe, plans for a European withholding tax and the scale of direct
investment flows outside of Europe. In the second quarter, currencies
suffered overall when the yen appreciated against the U.S. dollar due to
speculation that the Japanese government was considering a stimulus package
after the G8 summit in July. In September, short yen positions were
profitable as the yen weakened against the U.S. dollar on anticipation that
the U.S. Federal Reserve would continue to increase interest rates. The Euro
fell to a record low despite stronger than expected European data and the
success of the German tax reform package. Short positions in the Canadian
dollar were profitable despite weakening U.S. dollar fundamentals, a large
Canadian budget surplus and plans for tax cuts in Canada. Euro and yen
trading was profitable in December.

                  Trading in the interest rate markets was successful despite
volatile market conditions. Short Eurodollar trading was profitable as
European Union ministers blamed its slide in January on rapid U.S. growth and
fears the Federal Reserve would continue to raise interest rates. Losses were
realized in the Japanese 10-year bond, U.S. 10-year Treasury note and long
U.S. Treasury positions as the yield curve fluctuated widely during the first
quarter. U.S. bond yields fell in the second quarter as investors shifted to
Treasuries due to increased volatility in the NASDAQ and other equity
markets. U.S. bonds were unprofitable when bonds rallied during June after a
higher than expected unemployment report and a lack of interest rate action
by the Federal Reserve. Losses were incurred in the third quarter on Japanese
10-year bond positions. In November and December, trading was profitable as
uncertainty surrounding the U.S. Presidential election caused investors to
favor bond markets over equities.

                  Energy trading was successful for the year. Long crude oil
and unleaded gas positions realized gains early in the year despite the
possibility of OPEC increasing crude oil production. Such a hike would still
leave oil inventories at levels much below normal. Prices continued to rise
in the second quarter as the International Energy Agency reported the need
for additional oil to prevent an inventory shortage. By August, long light
crude oil positions profited as the oil balance faced a significant inventory
deficit, shrinking production capacity, limited prospects of non-OPEC supply
growth and OPEC's key countries desire for a higher average price. Fears of
supply shortages pushed prices higher as December saw colder temperatures
than last year.

                  Agricultural commodity trading resulted in modest gains for
the year. Losses were realized in the first quarter on short corn positions
due to dry conditions in Argentina, pushing corn prices higher. Long sugar
positions were profitable mid year on a report from Brazil stating
unfavorable weather conditions will lead to a significant drop

                                      -10-
<PAGE>

in 2000/2001 sugar production. Agricultural trading resulted in gains in
November as imbalance in supply versus demand has caused weakness in the
markets.

                  Trading in the Stock Index markets was the most
unprofitable strategy for the Fund. Volatile market conditions led to
unprofitable positions in the S&P 500 and the FTSE - Financial Times index
early in the year. Signs of rising inflation led to losses in Nikkei 225 and
S&P 500 positions on concerns the Federal Reserve will continue to raise
interest rates aggressively to slow the robust economy. The S&P 500 finished
September lower as buyers retreated due to fears of an economic slowdown. The
year closed with losses from DAX German Stock Index and Hang Seng trading.

                  Metals trading alternated from profitable to unprofitable
during the year. Base metal prices rose early on as concerns over higher
interest rates and the decline in global equity prices created defensive
tones in the markets. Gold prices ended the second quarter higher in reaction
to the Federal Reserve leaving interest rates unchanged and a report that the
South African Reserve Bank received a $500 million gold denominated loan.
Long copper positions profited from reports from China on increased
production. Gold prices rose on October 12 as result of heightened tensions
between Israel and Palestine, a surge in crude oil prices and a plunge in
global equities. However, within three days, prices fell below pre-rally
levels.

         1999
<TABLE>
<CAPTION>

                                      Total Trading
                                         Results

<S>                                 <C>
 Interest Rates                             $ 390,642
 Stock Indices                               (598,587)
 Commodities                                2,153,572
 Currencies                                    96,120
 Energy                                     4,089,862
 Metals                                    (1,025,850)
                                    ------------------
                                          $ 5,105,759
                                    ==================
</TABLE>

                  The Fund finished 1999 with gains in energy, agricultural
commodities, interest rate and currency trading and losses in metals and
stock index 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. The
major surprise in the oil market in 1999 was OPEC's high level of
self-discipline, resulting in crude oil rallies throughout the year. Interest
rate trading was also profitable for the Fund 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.

                  Energy trading produced the largest gains during 1999. The
Fund profited from heating oil, crude oil and unleaded gas. Short positions in
heating oil proved most profitable for the Fund in the first quarter of
the year as prices dropped to its lowest levels in more than a decade. Gains in
crude oil and unleaded gas outweighed losses in natural gas trading as the focus
attention in the natural gas markets declined since the end of the winter. The
remainder of the year saw the Fund profit from long positions in crude oil,
gasoil and unleaded gas positions as OPEC cut production to 1.716 million
barrels per day and this resulted in higher prices for crude. Near the end of
the year, there was a continued upward momentum in crude oil reflecting the
tightening between supply and demand and prices hitting ten year highs.


                                      -11-

<PAGE>

                  Trading in agricultural was profitable overall for the Fund in
1999. During the first half of the year gains in coffee, cocoa and live cattle
positions outweighed loss in corn and live hogs. Agricultural commodities were
weak almost across the board as they were saddled with supply/demand imbalances
and unpredictable weather throughout the world. The second half of the year
produced gains through cocoa and corn positions, which offset losses in coffee,
live hogs and soybean. The anticipation of supply/demand imbalance for coffee
from an expected 2000-2001 bumper crop in Brazil pushed prices lower. These
losses were outweighed by short positions in corn and cocoa as excess supply had
speculators selling heavily into the market throughout the fourth quarter.

                  Interest rate trading was volatile during the year as the
Federal Reserve raised interest rates three times and the Japanese
government's continued desire to keep short-term rates at zero loomed over
the markets throughout the year. The Fund generated gains in Japanese
ten-year bonds and U.S. ten-year Treasury notes that outweighed losses in
Eurodollars and German ten-year bonds. Early in the year, the yield on the
Japanese government ten-year bond increased to 1.8% sharply above the record
low of 0.695% it reached on October 7, 1998. This was triggered by the
Japanese Trust Fund Bureau's decision to absorb a smaller share of future
issues, leaving the burden of financing future budget deficits to the private
sector. The second half of the year saw large gains from short positions in
U.S. Treasury notes as inflation worries and fears that the Federal Reserve
will continue to tighten rates well into 2000 saw yields reach new multi-year
highs.

                  Currency trading produced modest gains during 1999 for the
Fund. The first half of the year saw profitable positions in the Japanese yen
and Euro trading, which slightly outweighed losses in the British pound and
short positions in the Australian dollar. The Australian dollar has been feeling
the pinch of commodity price weakness for a few years but rallied back since its
low in August of 1998. The second half of the year produced mixed results, as
profitable trading in the Japanese yen were offset by losses in Euro currency
trading and the British pound. Long yen positions resulted in strong gains as
the Bank of Japan refused to ease monetary policy and investors added to their
yen exposure, which reached a two-year high during the second half of the year.
Euro currency trading sustained losses as it continued to trade in the same
choppy pattern that has been evident during most of 1999.

                  Stock index trading was unprofitable throughout the majority
of the year for the Fund as losses in the Hang Seng, Nikki 255, S&P 500 and
CAC 40 offset slight gains in the DAX and FTSE 100. Stock indices continued
their volatile swings throughout the year as the Dow Jones Industrial Average
closed above the 10,000 and 11,000 marks during the year. Positions in the
S&P 500, Nikkei 225 and Hang Seng during second half of the year resulted in
losses as the markets volatility made the trading environment extremely
difficult.

                  Metals trading generated the largest losses for the Fund in
1999 as losses in copper, nickel and silver offset gains in aluminum and gold.
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. The Fund held long
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 weighted 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.


                                      -12-

<PAGE>

         1998
<TABLE>
<CAPTION>
                                      Total Trading
                                         Results

<S>                                 <C>
 Interest Rates                          $ 13,700,880
 Stock Indices                             (1,850,085)
 Commodities                                 (113,534)
 Currencies                                 2,224,110
 Energy                                     4,392,566
 Metals                                    (5,109,631)
                                    ------------------
                                         $ 13,244,306
                                    ==================
</TABLE>

                  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 Federal Reserve lowered interest rates.

                  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%.

                  In currency markets, results early in the year were mixed,
although marginally profitable. 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 economies weakened. Japan's deepening recession and credit crunch
continued through the fourth quarter, and the Fund achieved gains from long yen
positions.

                  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 its 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.


                                      -13-

<PAGE>

                  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.

                  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.

         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, effected 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 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. The only Fund costs (other
than the insignificant currency trading costs) which are not based on a
percentage of the Fund's assets are the Profit Shares payable to the Advisors
on an Advisor-by-Advisor basis and the Incentive Override. 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.

                  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 (e.g. 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 a non-U.S. dollar
denominated trading positions pending the conversion of the Fund's U.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.

                                      -14-
<PAGE>

                  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 securities 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 ten business days to receive the full redemption proceeds of their
Units.

ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTRODUCTION

                  PAST PERFORMANCE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

                  The Fund is a speculative commodity pool. Unlike an operating
company, the risk of market sensitive instruments traded by it is integral, not
incidental, to the Fund's main line of business.

                  Market movements result in frequent changes in the fair market
value of the Fund's open positions and, consequently, in its earnings and cash
flows. The Fund's market risk is influenced by a wide variety of factors,
including the level and volatility of interest rates, exchange rates, equity
price levels, the market value of financial instruments and contracts, the
diversification effects among the Fund's open positions and the liquidity of the
markets in which it trades.

                  The Fund, under the direction of its Advisors, rapidly
acquires and liquidates both long and short positions in a wide range of
different markets. Consequently, it is not possible to predict how a possible
future market scenario will affect performance, and the Fund's past performance
is not necessarily indicative of its future results.

                  Value at Risk is a measure of the maximum amount which the
Fund could reasonably be expected to lose in a given market sector. However, the
inherent uncertainty of the Fund's speculative trading and the recurrence in the
markets traded by the Fund of market movements far exceeding expectations could
result in actual trading or non-trading losses far beyond the indicated Value at
Risk or the Fund's experience to date (i.e., "risk of ruin"). In light of the
foregoing, as well as the risks and uncertainties intrinsic to all future
projections, the inclusion of the quantification in this section should not be
considered to constitute any assurance or representations that the Fund's losses
in any market sector will be limited to Value at Risk or by the Fund's attempt
to manage market risk.

QUANTIFYING THE FUND'S TRADING VALUE AT RISK

                  QUANTITATIVE FORWARD-LOOKING STATEMENTS

                  The following quantitative disclosures regarding the Fund's
market risk exposures contain "forward-looking statements" within the meaning of
the safe harbor from civil liability provided for such statements by the Private
Securities Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical
fact.

                  The Fund's risk exposure in the various market sectors traded
by the Advisors is quantified below in terms of Value at Risk. Due to the Fund's
mark-to-market accounting, any loss in the fair value of the Fund's open
positions is directly reflected in the Fund's earnings (realized or unrealized)
and cash flows (at least in the case of exchange-traded contracts in which
profits and losses on open positions are settled daily through variation
margin).


                                      -15-
<PAGE>

                  Exchange maintenance margin requirements have been used by
the Fund as the measure of its Value at Risk. Maintenance margin requirements
are set by exchanges to equal or exceed the maximum loss in the fair value of
any given contract incurred in 95% - 99% of the one-day time periods included
in the historical sample (generally approximately one year) researched for
purposes of establishing margin levels. Maintenance margin levels are
established by dealers and exchanges using historical price studies, as well
as an assessment of current market volatility and economic fundamentals to
provide a probabilistic estimate of the maximum expected near-term one-day
price fluctuation.

                  In the case of market sensitive instruments which are not
exchange-traded (almost exclusively currencies in the case of the Fund), the
margin requirements for the equivalent futures positions have been used as Value
at Risk. In those rare cases in which a futures-equivalent margin is not
available, dealers' margins have been used.

                  The fair value of the Fund's futures and forward positions
does not have any optionality component. However, certain of the Advisors trade
commodity options. The Value at Risk associated with options is reflected in the
following table as the margin requirement attributable to the instrument
underlying each option.

                  100% positive correlation in the different positions held in
each market risk category has been assumed. Consequently, the margin
requirements applicable to the open contracts have been aggregated to determine
each trading category's aggregate Value at Risk. The diversification effects
resulting from the fact that the Fund's positions are rarely, if ever, 100%
positively correlated have not been reflected.


                                      -16-
<PAGE>

THE FUND'S TRADING VALUE AT RISK IN DIFFERENT MARKET SECTORS

                  The following table indicates the average, highest and
lowest trading Value at Risk associated with the Fund's open positions by
market category for the fiscal years 2000 and 1999. During the fiscal year
2000, the Fund's average capitalization was approximately $65,365,539. During
the fiscal year 1999, the Fund's average capitalization was approximately
$91,419,778.

<TABLE>
<CAPTION>
                                                    DECEMBER 31, 2000

                             AVERAGE                % OF AVERAGE           HIGHEST VALUE          LOWEST VALUE
 MARKET SECTOR            VALUE AT RISK            CAPITALIZATION             AT RISK                AT RISK
---------------        ------------------    -----------------------    ------------------    -------------------

<S>                    <C>                    <C>                       <C>                    <C>
 Interest Rates                $ 1,244,405                      1.90%          $ 1,716,588              $ 926,521
 Currencies                      1,755,798                      2.69%            2,239,566              1,355,039
 Stock Indices                     437,529                      0.67%              582,248                261,424
 Metals                            589,009                      0.90%              733,295                473,269
 Commodities                       397,396                      0.61%              563,728                173,326
 Energy                            576,088                      0.88%              637,450                506,920
                       --------------------   ------------------------  -------------------    -------------------

 TOTAL                         $ 5,000,225                      7.65%          $ 6,472,875            $ 3,696,499
                       ====================   ========================  ===================    ===================

                                                    DECEMBER 31, 1999

                             AVERAGE                % OF AVERAGE           HIGHEST VALUE          LOWEST VALUE
 MARKET SECTOR            VALUE AT RISK            CAPITALIZATION             AT RISK                AT RISK
---------------        -------------------    ----------------------    -------------------    -------------------

 Interest Rates                $ 3,100,694                      3.39%          $ 2,953,077              $ 799,566
 Currencies                      1,324,266                      1.45%            1,690,978              1,039,330
 Stock Indices                   1,377,684                      1.51%            2,309,135                423,646
 Metals                            474,094                      0.52%              805,346                327,977
 Commodities                       533,006                      0.58%            1,006,627                359,343
 Energy                            659,611                      0.72%              901,100                633,876
                       --------------------   ------------------------  -------------------    -------------------

 TOTAL                         $ 7,469,355                      8.17%          $ 9,666,263            $ 3,583,738
                       ====================   ========================  ===================    ===================
</TABLE>


                  Average, highest and lowest Value at Risk amounts relate to
the quarter-end amounts for each calendar quarter-end during the fiscal year.
Average Capitalization is the average of the Fund's capitalization at the end of
each calendar quarter of fiscal years 2000 and 1999.

MATERIAL LIMITATIONS ON VALUE AT RISK AS AN ASSESSMENT OF MARKET RISK

                  The face value of the market sector instruments held by the
Fund is typically many times the applicable maintenance margin requirement
(maintenance margin requirements generally ranging between approximately 1% and
10% of contract face value) as well as many times the capitalization of the
Fund. The magnitude of the Fund's open positions creates a "risk of ruin" not
typically found in most other investment vehicles. Because of the size of its
positions, certain market conditions unusual, but historically recurring from
time to time could cause the Fund to incur severe losses over a short period of
time. The foregoing Value at Risk table as well as the past performance of the
Fund gives no indication of this "risk of ruin."


                                      -17-
<PAGE>

NON-TRADING RISK

                  FOREIGN CURRENCY BALANCES; CASH ON DEPOSIT WITH MLF

                  The Fund has non-trading market risk on its foreign cash
balances not needed for margin. However, these balances (as well as the market
risk they represent) are immaterial.

                  The Fund also has non-trading market risk on the approximately
90%-95% of its assets which are held in cash at MLF. The value of this cash is
not interest rate sensitive, but there is cash flow risk in that if interest
rates decline so will the cash flow generated on these monies. This cash flow
risk is immaterial.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

                  The following qualitative disclosures regarding the Fund's
market risk exposures except for (i) those disclosures that are statements of
historical fact and (ii) the descriptions of how the Fund manages its primary
market risk exposure constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act. The Fund's primary market risk exposures as well as the strategies used and
to be used by MLIP and the Advisors for managing such exposures are subject to
numerous uncertainties, contingencies and risks, any one of which could cause
the actual results of the Fund's risk controls to differ materially from the
objectives of such strategies. Government interventions, defaults and
expropriations, illiquid markets, the emergence of dominant fundamental factors,
political upheavals, changes in historical price relationships, an influx of new
market participants, increased regulation and many other factors could result in
material losses as well as in material changes to the risk exposures and the
risk management strategies of the Fund. There can be no assurance that the
Fund's current market exposure and/or risk management strategies will not change
materially or that any such strategies will be effective in either the short- or
long-term. Investors must be prepared to lose all or substantially all of their
investment in the Fund.

                  The following were the primary trading risk exposures of the
Fund as of December 31, 2000, by market sector.

                  INTEREST RATES.

                  Interest rate risk is the principal market exposure of the
Fund. Interest rate movements directly affect the price of derivative
sovereign bond positions held by the Fund and indirectly the value of its
stock index and currency positions. Interest rate movements in one country as
well as relative interest rate movements between countries materially impact
the Fund's profitability. The Fund's primary interest rate exposure is to
interest rate fluctuations in the United States and the other G-7 countries.
However, the Fund also takes positions in the government debt of smaller
nations e.g., New Zealand and Australia. MLIP anticipates that G-7 interest
rates will remain the primary market exposure of the Fund for the foreseeable
future.

                  CURRENCIES.

                  The Fund trades in a large number of currencies. However,
the Fund's major exposures have typically been in the U.S. dollar/yen, U.S.
dollar/Euro and U.S. dollar/pound positions. MLIP does not anticipate that
the risk profile of the Fund's currency sector will change significantly in
the future. The currency trading Value at Risk figure includes foreign margin
amounts converted into U.S. dollars with an incremental adjustment to reflect
the exchange rate risk of maintaining Value at Risk in a functional currency
other than U.S. dollars.

                  STOCK INDICES.

                  The Fund's primary equity exposure is to G-7 equity index
price movements. As of December 31, 2000, the Fund's primary exposures were
in the S&P 500, Financial Times (England), Nikkei (Japan) and DAX (Germany)
stock indices. MLIP anticipates little, if any, trading in non-G-7 stock
indices. The Fund is primarily exposed to the risk of adverse price trends or
static markets in the major U.S., European and Asian indices.


                                      -18-
<PAGE>

                  METALS.

                  The Fund's primary metals market exposure is to
fluctuations in the price of gold and silver. Although certain of the
Advisors will from time to time trade base metals such as aluminum, nickel,
copper and tin, the principal market exposures of the Fund have consistently
been in the precious metals, gold and silver (and, to an extent, platinum).
MLIP anticipates that gold and silver will remain the primary metals market
exposure for the Fund.

                  COMMODITIES.

                  The Fund's primary commodities exposure is to agricultural
price movements which are often directly affected by severe or unexpected
weather conditions. Soybeans, grains and orange juice accounted for the
substantial bulk of the Fund's commodities exposure as of December 31, 2000.
In the past, the Fund has had material market exposure to live cattle and
hogbellies and may do so again in the future. However, MLIP anticipates that
the Advisors will maintain an emphasis on soybeans, grains and sugar, in
which the Fund has historically taken its largest positions.

                  ENERGY.

                  The Fund's primary energy market exposure is to gas and oil
price movements, often resulting from political developments in the Middle
East. Although the Advisors trade natural gas to a limited extent, oil is by
far the dominant energy market exposure of the Fund. Oil prices are currently
depressed, but they can be volatile and substantial profits and losses have
been and are expected to continue to be experienced in this market.

QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE

                  The following were the only non-trading risk exposures of the
Fund as of December 31, 2000.

                  FOREIGN CURRENCY BALANCES.

                  The Fund's primary foreign currency balances are in
Japanese yen, British pounds and Euro. The Fund has minimal exchange rate
exposure on these balances.

                  U.S. DOLLAR BALANCES.

                  The Fund holds its U.S. dollars in cash at MLF. The Fund
has immaterial cash-flows and interest-rate risk on its cash on deposit with
MLF in that declining interest rates would cause the income from such cash to
decline.

QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE

         TRADING RISK

                  MLIP has procedures in place intended to control market risk
exposure, although there can be no assurance that they will, in fact, succeed in
doing so. These procedures focus primarily on monitoring the trading of the
Advisors selected from time to time for the Fund, and reviewing outstanding
positions for over-concentrations both on an Advisor-by-Advisor and on an
overall Fund basis. While MLIP does not itself intervene in the markets to hedge
or diversify the Fund's market exposure, MLIP may urge Advisors to reallocate
positions, or itself reallocate Fund assets among Advisors (although typically
only as of the end of a month), in an attempt to avoid over-concentrations.
However, such interventions are unusual.

                  At the Advisor level, each Advisor applies its own risk
management policies to its trading. These policies generally limit the total
exposure that may be taken per "risk unit" of assets under management. In
addition, many Advisors follow diversification guidelines (often formulated in
terms of the maximum margin which they will commit to positions in any one
contract or group of related contracts), as well as imposing "stop-loss" points
at which open positions must be closed out. Occasionally, Advisors will limit
the market exposure of their Fund account through acquiring put or call options
which "collar" the risk of open positions. However, because of the typically
high degree of liquidity in the markets traded by the Fund and the expense of
acquiring options, most Advisors rely simply on stop-loss policies, requiring
the liquidation of positions once losses of a certain magnitude have been
incurred.

                                      -19-
<PAGE>

                  Certain Advisors treat their risk control policies as strict
rules; others only as general guidelines for controlling risk.

         NON-TRADING RISK

                  The Fund controls the non-trading exchange rate risk of its
foreign currency balances by regularly converting these balances back into
dollars (no less frequently than twice a month, and more frequently if a
particular foreign currency balance becomes unusually high).

                  The Fund has cash flow interest rate risk on its cash on
deposit with MLF in that declining interest rates would cause the income from
such cash to decline. However, a certain amount of cash or cash equivalents must
be held by the Fund in order to facilitate margin payments and pay expenses and
redemptions. MLIP does not take any steps to limit the cash flow risk on its
cash held on deposit at MLF.

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

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

<TABLE>
<S>                        <C>
RONALD S. ROSENBERG        Chairman and Director

FABIO P. SAVOLDELLI        President and Director

FRANK M. MACIOCE           Vice President and Director

STEVEN B. OLGIN            Vice President, Chief Administrative Officer and Director

MICHAEL L. PUNGELLO        Vice President, Chief Financial Officer and Treasurer
</TABLE>

                  Ronald S. Rosenberg was born in 1962. Mr. Rosenberg is
Chairman and a Director of MLIP and head of the Alternative Investments Group
for MLIM Americas, which creates alternative investment products and
strategies for Merrill Lynch's large institutional and high net worth private
clients. These products include funds of funds investing in hedge funds,
private equity funds, exchange funds, as well as other specialized investment
products. Most recently, Mr. Rosenberg ran the Global Hedge Fund Sales Group
and International Fixed Income Groups which sold investment products to hedge
funds worldwide. He joined Merrill Lynch in 1995 from JP Morgan, where he was
also responsible for sales groups that sold investment products to hedge
funds. Mr. Rosenberg was educated at the Wharton Business School, where he
received a Master of Business Administration in Finance. He graduated Phi
Beta Kappa from Rutgers University with a Bachelor of Arts in Computer
Science and Economics.


                                      -20-
<PAGE>

                  Fabio P. Savoldelli was born in 1961. Mr. Savoldelli is
President and a Director of MLIP. He oversees the Fund's investments. Most
recently, Mr. Savoldelli was Chief Investment Officer for the Americas at the
Chase Manhattan Private Bank, responsible for managers investing assets in
international and domestic institutional, private client and ERISA funds.
Previously, he was Deputy Chief Investment Officer and Head of Fixed Income
and Foreign Exchange at Swiss Bank Corp. London Portfolio Management
International. Mr. Savoldelli was educated at the University of Windsor,
Canada, and the London School of Economics.

                  Frank M. Macioce was born in 1945. Mr. Macioce is a Vice
President and a Director of MLIP and the senior legal counsel responsible for
Alternative Investments. He joined MLIM in February 2000. From 1995 to 2000,
Mr. Macioce was General Counsel of Operations, Services and Technology for
Merrill Lynch, and from 1993 to 1995 served as Merrill Lynch Investment
Banking General Counsel. From 1980 to 1993 he served as Assistant General
Counsel of Merrill Lynch responsible for Corporate Law. During his 28 years
with Merrill Lynch, he has served as a director and officer of a number of
its affiliates. Mr. Macioce graduated from Purdue University with a Bachelor
of Science in Economics and Psychology in 1967 and from Vanderbilt Law School
with a Juris Doctor in 1972. Mr. Macioce is a member of the New York Bar.

                  Steven B. Olgin was born in 1960. Mr. Olgin is Vice President,
Chief Administrative Officer and Director 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 a member of the
Illinois Bar.

                  Michael L. Pungello was born in 1957. Mr. Pungello is 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.

                  As of December 31, 2000, MLIP's general partner interest in
the Fund was valued at approximately $666,597.

                  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., The SECTOR Strategy Fund (SM) VI
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 Items 10 (a) and 10(b) above.

         (f)      INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS:

                           None.

         (g)      PROMOTERS AND CONTROL PERSONS:

                           Not applicable.

                                      -21-
<PAGE>

ITEM 11: EXECUTIVE COMPENSATION

                  The directors and officers of MLIP are remunerated by MLIP in
their respective positions. The Fund does not itself have any officers,
directors or employees. The Fund pays Brokerage Commissions to an affiliate of
MLIP and Incentive Overrides and Administrative Fees to MLIP. MLIP or its
affiliates may also receive certain economic benefits from holding the Fund's
dollar assets in offset accounts, as described in Item 1(c) above. The directors
and officers receive no "other compensation" from the Fund, 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
Fund or MLIP.

ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         (a)      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS:

                  As of December 31, 2000, no person or "group" is known to be
or have been the beneficial owner of more than 5% of the Units.

         (b)      SECURITY OWNERSHIP OF MANAGEMENT:

                  As of December 31, 2000, MLIP owned 3,722 Units
(unit-equivalent general partnership interests), which was approximately
1.11% of the total Units outstanding.

         (c)      CHANGES IN CONTROL:

                  None.

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 arm's-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 Merrill Lynch Pierce Fenner & Smith ("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 Fund.

                  In 2000 the Fund expensed: (i) Brokerage Commissions of
$4,862,392, which included $826,375 in consulting fees earned by the
Advisors; and (ii) Administrative Fees of $167,669 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"
for a discussion of other business dealings between MLIP affiliates and the
Fund.

                                      -22-
<PAGE>

                  The fact that MLIP receives incentive compensation from the
Fund (which is an unusual fee arrangement for MLIP) could cause MLIP to manage
the Fund in a more speculative and "risky" fashion than MLIP otherwise would.

         (c)      INDEBTEDNESS OF MANAGEMENT:

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

         (d)      TRANSACTIONS WITH PROMOTERS:

                  Not applicable.

                                    PART IV

ITEM 14: EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

<TABLE>
<CAPTION>
         (a)1.    FINANCIAL STATEMENTS (FOUND IN EXHIBIT 13.01):                         PAGE
<S>               <C>                                                                    <C>
                  Independent Auditors' Report                                              1

                  Statements of Financial Condition as of December 31, 2000 and 1999        2

                  For the years ended December 31, 2000, 1999 and 1998:
                           Statements of Income                                             3
                           Statements of Changes in Partners' Capital                       4

                  Notes to Financial Statements                                           5-9
</TABLE>

         (a)2.    FINANCIAL STATEMENT SCHEDULES:

                  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:

<TABLE>
<CAPTION>
DESIGNATION                DESCRIPTION
<S>                        <C>
1.01                       Selling Agreement among the Fund, MLIP, Merrill Lynch Futures, the Selling
                           Agent and the Advisors.

EXHIBIT 1.01:              Is incorporated herein by reference from Exhibit 1.01 contained in Amendment No. 1 to
                           the Registration Statement (File No. 33-62998) filed on September 10, 1993, on Form
                           S-1 under the Securities Act of 1933 (the "Registrant's Registration Statement").

3.01(i)                    Amended and Restated Certificate of Limited Partnership of the Registrant, dated
                           August 25, 1994.

EXHIBIT 3.01(i):           Is incorporated herein by reference from Exhibit 3.01(i) contained in the Registrant's
                           Registration Statement.

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

EXHIBIT 3.01(ii):          Is incorporated herein by reference from Exhibit 3.01(ii) contained in the
                           Registrant's Registration Statement (as Exhibit A).

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

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

10.01(d)                   Form of Advisory  Agreement between the Fund,  Merrill Lynch Investment  Partners
                           Inc., Merrill Lynch Futures Inc. and prospective trading advisors.
</TABLE>

                                      -23-
<PAGE>

<TABLE>
<S>                        <C>
EXHIBIT 10.01(d):          Is incorporated by reference from Exhibit 10.01(d) 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 Advisor, the Fund 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 Fund and Merrill Lynch Futures Inc.

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

10.05                      Form of Subscription Agreement and Power of Attorney.

EXHIBIT 10.05:             Is incorporated herein by reference from Exhibit 10.05 contained in the Registrant's
                           Registration Statement (as Exhibit D).

10.06                      Foreign Exchange Desk Service Agreement, dated July 1, 1993 among Merrill Lynch
                           International Bank, Merrill Lynch Investment Partners Inc., Merrill Lynch Futures Inc.
                           and the Fund.

EXHIBIT 10.06:             Is incorporated herein by reference from Exhibit 10.06 contained in Amendment No. 1 to
                           the Registration Statement.

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

EXHIBIT 10.07:             Is incorporated herein by reference from Exhibit 10.07 contained in the
                           Registrant's report on Form 10-K for the year ended December 31, 1996.

13.01                      2000 Annual Report and Independent Auditors' Report.

EXHIBIT 13.01:             Is filed herewith.

28.01                      Prospectus of the Partnership dated December 6, 1995.

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. 33-88994) on Form S-1, effective December 6, 1995).
</TABLE>


         (b)      REPORT ON FORM 8-K:

                  No reports on Form 8-K were filed during the fourth quarter of
2000.

                                      -24-
<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.

                                    ML GLOBAL HORIZONS L.P.

                                    By:  MERRILL LYNCH INVESTMENT PARTNERS INC.
                                    General Partner

                                    By:/s/
                                    Ronald S. Rosenberg
                                    Chairman 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, 2001 by the
following persons on behalf of the Registrant and in the capacities indicated.

<TABLE>
<CAPTION>
SIGNATURE                           TITLE                                                        DATE

<S>                                 <C>                                                          <C>
/s/RONALD S. ROSENBERG              Chairman and Director                                        March 30, 2001
----------------------              (Principal Executive Officer)
Ronald S. Rosenberg

/s/FABIO SAVOLDELLI                 President and Director                                       March 30, 2001
-------------------
Fabio Savoldelli

/s/ STEVEN B. OLGIN                 Vice President, Chief Administrative Officer,                March 30, 2001
-----------------------             and Director
Steven B. Olgin

/s/ MICHAEL L. PUNGELLO             Vice President, Chief Financial Officer, and Treasurer       March 30, 2001
-----------------------             (Principal Financial and Accounting Officer)
Michael L. Pungello

(Being the principal executive officer, the principal financial and accounting
officer and a majority of the directors of MLIP).

MERRILL LYNCH INVESTMENT            General Partner of Registrant                                March 30, 2001
   PARTNERS INC.
</TABLE>

By: /s/ RONALD S. ROSENBERG
    -------------------------
      Ronald S. Rosenberg


                                      -25-
<PAGE>

                             ML GLOBAL HORIZONS L.P.

                                 2000 FORM 10-K

                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
                    EXHIBIT

<S>                 <C>
Exhibit 13.01       2000 Annual Report and Independent Auditors' Report
</TABLE>



                                      -26-