<PAGE>

                                                                EXHIBIT 13.01(A)

                ML MULTI-MANAGER PORTFOLIO LLC
                (A Delaware Limited Liability Company)


                Financial Statements for the year ended
                December 31, 1999 and for the period from
                June 1, 1998 (Commencement of Operations)
                to December 31, 1998 and
                Independent Auditors' Report


[LOGO] Merrill Lynch
<PAGE>

ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)


TABLE OF CONTENTS
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<CAPTION>

                                                                Page
                                                                ----
<S>                                                             <C>

INDEPENDENT AUDITORS' REPORT                                       1

FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 31, 1999 AND FOR THE PERIOD
FROM JUNE 1, 1998 (COMMENCEMENT OF
OPERATIONS) TO DECEMBER 31, 1998:

  Statements of Financial Condition                                2

  Statements of Operations                                         3

  Statements of Changes in Members' Capital                        4

  Notes to Financial Statements                                  5-9
</TABLE>
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INDEPENDENT AUDITORS' REPORT
----------------------------



To the Members of
 ML Multi-Manager Portfolio LLC:

We have audited the accompanying statements of financial condition of ML Multi-
Manager Portfolio LLC (the "Company") as of December 31, 1999 and 1998, and the
related statements of operations and of changes in members' capital for the year
ended December 31, 1999 and for the period from June 1, 1998 (Commencement of
Operations) to December 31, 1998.  These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

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

In our opinion, such financial statements present fairly, in all material
respects, the financial position of ML Multi-Manager Portfolio LLC as of
December 31, 1999 and 1998, and the results of its operations and changes in
members' capital for the year ended December 31, 1999 and for the period from
June 1, 1998 (Commencement of Operations) to December 31, 1998 in conformity
with generally accepted accounting principles.


DELOITTE & TOUCHE LLP


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

ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 1999 and 1998
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
                                                                   1999                 1998
                                                           ------------------  ------------------
<S>                                                             <C>                <C>
Equity in commodity futures trading accounts:
    Cash and option premiums                                    $ 97,949,902       $ 122,916,463
    Net unrealized profit on open contracts                        2,517,003           1,970,219
Accrued interest (Note 2)                                            434,772             445,876
                                                           ------------------  ------------------

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

LIABILITIES AND MEMBERS' CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 2)                         $ 708,081           $ 938,848
    Profit Shares payable (Note 3)                                   420,906           1,944,169
    Administrative fees payable (Note 2)                              24,744              44,772
    Redemptions Payable                                            1,752,661           2,021,293
                                                           ------------------  ------------------

            Total liabilities                                      2,906,392           4,949,082
                                                           ------------------  ------------------

MEMBERS' CAPITAL:

    Voting Members                                                97,995,285         120,383,476
                                                           ------------------  ------------------

            Total Members' capital                                97,995,285         120,383,476
                                                           ------------------  ------------------

                TOTAL                                          $ 100,901,677       $ 125,332,558
                                                           ==================  ==================
</TABLE>


See notes to financial statements.

                                      -2-
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ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD
FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1998
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
REVENUES:                                          1999                  1998
                                             ------------------     ---------------
<S>                                                <C>                <C>
Trading profit:
    Realized                                       $ 3,344,876        $ 13,866,078
    Change in unrealized                               546,402           1,970,219
                                             ------------------     ---------------

        Total trading results                        3,891,278          15,836,297

Interest income (Note 2)                             5,198,912           3,419,046
                                             ------------------     ---------------

        Total revenues                               9,090,190          19,255,343
                                             ------------------     ---------------

EXPENSES:

    Brokerage commissions (Note 2)                   9,316,187           6,348,662
    Profit Shares (Note 3)                             515,566           2,943,598
    Administrative fees (Note 2)                       320,264             199,582
                                             ------------------     ---------------

        Total expenses                              10,152,017           9,491,842
                                             ------------------     ---------------

NET INCOME (LOSS)                                 $ (1,061,827)        $ 9,763,501
                                             ==================     ===============
</TABLE>


See notes to financial statements.

                                      -3-
<PAGE>

ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)


STATEMENTS OF CHANGES IN MEMBERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD
FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1998
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                          Non-Voting
                                          Voting Members                   Members                   Total
                                        --------------------       -----------------------------------------------

<S>                                           <C>                          <C>                      <C>
Initial Contributions                         $ 116,715,631                $ 5,461,563              $ 122,177,194

Additions                                        11,012,473                     56,478                 11,068,951

Withdrawals                                     (16,715,086)                (5,911,084)               (22,626,170)

Net Income                                        9,370,458                    393,043                  9,763,501
                                        --------------------       --------------------       --------------------

MEMBERS' CAPITAL,
  DECEMBER 31, 1998                             120,383,476                          -                120,383,476

Withdrawals                                     (21,326,364)                         -                (21,326,364)

Net loss                                         (1,061,827)                         -                 (1,061,827)
                                        --------------------       --------------------       --------------------

MEMBERS' CAPITAL,
  DECEMBER 31, 1999                            $ 97,995,285                          -               $ 97,995,285
                                        ====================       ====================       ====================
</TABLE>

See notes to financial statements.

                                      -4-
<PAGE>

ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

   ML Multi-Manager Portfolio LLC (the "Company") was organized under the
   Delaware Limited Liability Company Act on May 11, 1998 and commenced trading
   activities on June 1, 1998.  The Company engages in the speculative trading
   of futures, options on futures, forwards and options on forward contracts on
   a wide range of commodities.  Merrill Lynch Investment Partners Inc.
   ("MLIP"), a wholly-owned subsidiary of Merrill Lynch Group, Inc., which, in
   turn, is a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill
   Lynch"), has been delegated administrative authority over the Company.
   Merrill Lynch Futures Inc. ("MLF"), an affiliate of MLIP, is the Company's
   commodity broker. A portion of the Company's assets is held by a commodity
   broker, other than MLF, to facilitate the trading of a certain independent
   advisor, subject to an arrangement recognized by MLIP.  The Company has
   authorized two classes of Membership Interests:  Non-Voting Interests and
   Voting Interests (collectively, "Interests").  These two classes of Interests
   have common economic interests in the Company.  The Non-Voting Interests,
   held by non-United States investment funds sponsored by MLIP, do not
   participate in the management of the Company, or engage, directly or
   indirectly, in, participate in or control any portion of the business
   activities or affairs of the Company. Voting Interests are held by United
   States limited partnerships.  The Voting Members control all business
   activities and affairs of the Company by agreement of the majority in
   interest of the Voting Members, subject to the discretionary trading
   authority vested in and delegated to the independent trading advisors (the
   "Advisors") and the administrative authority vested in and delegated to MLIP.
   Each Voting Member is a "commodity pool" sponsored and controlled by MLIP and
   shares in the Trading profit and Interest income of the Company in proportion
   to their respective capital accounts.

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

   Estimates
   ---------

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

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

   Commodity futures, options on futures, forwards and options on forward
   contracts are recorded on the trade date and open contracts are reflected in
   Net unrealized profit on open contracts in the Statements of Financial
   Condition at the difference between the original contract value and the
   market value (for those commodity interests for which market quotations are
   readily available) or at fair value.  The unrealized profit on open contracts
   is reflected in Trading profit:  Change in unrealized in the Statements of
   Operations.

                                      -5-
<PAGE>

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

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

   Organizational Costs
   --------------------

   MLIP paid all organizational costs relating to the Company without direct
   reimbursement from the Company or any Member.

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

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

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

   No distribution has been made by the Company to any Member as of December 31,
   1999.

   Withdrawals
   -----------

   Each Member may withdraw some or all of such Members' capital at the Net
   Asset Value as of the close of business on any business day.  There are no
   withdrawal fees or charges.

   Dissolution of the Company
   --------------------------

   The Company will terminate on December 31, 2028 or at an earlier date if
   certain conditions occur, as well as under certain other circumstances as set
   forth in the Organization Agreement.

2. RELATED PARTY TRANSACTIONS

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

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

   Following the allocation of the Company's trading profit and interest income
   among the Members' Capital Accounts, MLIP calculates the brokerage
   commissions, Profit Shares, administrative fees and other expenses due from
   the Company to third parties, relating to the Company's trading on behalf of
   the Members.  Such brokerage commissions, fees and expenses are specifically
   allocated as of the end of each

                                      -6-
<PAGE>

   accounting period (not pro rata based on the Members' respective capital
   accounts) to, and deducted from, the Members' capital accounts and paid out
   by the Company. The Company pays brokerage commissions to MLF, at a flat
   monthly rate reflecting the fee arrangement between each Member and MLF. For
   the year ended December 31, 1999 and the period from June 1, 1998 to December
   31, 1998, the rate for Members was .729 of 1% (an 8.75% annual rate) except
   for one Member which paid .292 of 1% (a 3.5% annual rate) of such Member's
   month-end assets invested in the Company.

   The Company pays MLIP a monthly administrative fee of .021 of 1% (a .25%
   annual rate), except for one Member which pays .083 of 1% (a 1.0% annual
   rate), of each Member's month-end assets. Month-end assets are not reduced
   for purposes of calculating brokerage commissions and administrative fees by
   any accrued brokerage commissions, administrative fees, Profit Shares or
   other fees or charges.

   MLF pays the Advisors annual Consulting Fees ranging up to 2% of the
   Company's average month-end assets allocated to them for management after
   reduction for a portion of the brokerage commissions.

3. ADVISORY AGREEMENTS

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

   The Company pays, from the Capital Account of each Member, to the Advisors
   quarterly or annual Profit Shares generally ranging from 15% to 24% of any
   New Trading Profit, as defined, recognized by each Advisor, attributable to
   each Member's Capital Account, considered individually irrespective of the
   overall performance of the such Member's Capital Account.  Profit Shares,
   which are calculated separately in respect of each Member's Capital Account,
   are determined as of the end of each calendar quarter or year and are also
   paid to each Advisor upon the withdrawal of capital from the Company by a
   Member for whatever purpose, other than to pay expenses and upon the
   reallocation of assets away from an Advisor.

4. FAIR VALUE AND OFF-BALANCE SHEET RISK

  In June 1998, the Financial Accounting Standards Board issued Statement of
  Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative
  Instruments and Hedging Activities" (the "Statement"), effective for fiscal
  years beginning after June 15, 2000, as amended by SFAS No. 137.  This
  Statement supercedes SFAS No. 119 ("Disclosure about Derivative Financial
  Instruments and Fair Value of Financial Instruments") and SFAS No. 105
  ("Disclosure of Information about Financial Instruments with Off-Balance Sheet
  Risk and Financial Instruments with Concentrations of Credit Risk") whereby
  disclosure of average aggregate fair values and contract/notional values,
  respectively, of derivative financial instruments is no longer required for an
  entity such as the Company which carries its assets at fair value.  Such
  Statement sets forth a much broader definition of a derivative instrument.
  MLIP does not believe that the adoption of the provisions of such Statement
  had a significant effect on the financial statements.

  SFAS No. 133 defines a derivative as a financial instrument or other contract
  that has all three of the following characteristics: (1) one or more
  underlyings and notional amounts or payment provisions; (2) requires no
  initial net investment or a smaller initial net investment than would be
  required for other types of contracts that would be expected to have a similar
  response to changes in market factors; and, (3) terms

                                      -7-
<PAGE>

  that require or permit net settlement. Generally, derivatives include futures,
  forwards, swaps, options, or other financial instruments with similar
  characteristics such as caps, floors and collars.

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

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

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

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

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

  The credit risk associated with these instruments from counterparty
  nonperformance is the net unrealized profit on open contracts, if any,
  included in the Statements of Financial Condition.

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

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

                                      -8-
<PAGE>

                  *     *     *     *     *     *     *     *

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

                            /s/ Michael L. Pungello

                              Michael L. Pungello
                            Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                           Commodity Pool Operator of
                         ML MULTI-MANAGER PORTFOLIO LLC

                                      -9-