<PAGE>




                           JOHN W. HENRY & CO./
                           MILLBURN L.P .
                           (A DELAWARE LIMITED PARTNERSHIP)


                           Financial Statements for the years ended December 31,
                           2000, 1999 and 1998 and Independent Auditors' Report


[MERRILL LYNCH COMPANY LOGO]

<PAGE>




JOHN W.HENRY & CO./MILLBURN L. P.
(A DELAWARE LIMITED PARTNERSHIP)

<TABLE>
<CAPTION>
TABLE OF CONTENTS
-----------------------------------------------------------------------------------------------

                                                                                          Page
                                                                                          -----
<S>                                                                                       <C>
INDEPENDENT AUDITORS' REPORT                                                                  1

FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 and 1998:

  Statements of Financial Condition                                                           2

  Statements of Operations                                                                    3

  Statements of Changes in Partners' Capital                                                  4

  Notes to Financial Statements                                                            5-14
</TABLE>


<PAGE>

INDEPENDENT AUDITORS' REPORT



To the Partners of
  John W. Henry & Co./Millburn L.P.:

We have audited the accompanying statements of financial condition of John W.
Henry & Co./Millburn L.P. (the "Partnership") as of December 31, 2000 and 1999,
and the related statements of operations and of changes in partners' capital for
each of the three years in the period ended December 31, 2000. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

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

In our opinion, such financial statements present fairly, in all material
respects, the financial position of John W. Henry & Co./Millburn L.P. as of
December 31, 2000 and 1999, and the results of its operations and changes in its
partners' capital for each of the three years in the period ended December 31,
2000 in conformity with accounting principles generally accepted in the United
States of America.

DELOITTE & TOUCHE LLP


New York, New York
February 5, 2001


<PAGE>

JOHN W. HENRY & CO./MILLBURN L.P.
(A DELAWARE LIMITED PARTNERSHIP)

<TABLE>
<CAPTION>
STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2000 AND 1999
-----------------------------------------------------------------------------------------------------------

                                                                          2000                  1999
                                                                    ------------------    ------------------
<S>                                                                 <C>                   <C>
ASSETS

  Investments (Note 6)                                                   $ 29,423,145          $ 42,876,172
  Receivable from investments (Note 6)                                        414,650             1,007,250
                                                                    ------------------    ------------------

                TOTAL                                                    $ 29,837,795          $ 43,883,422
                                                                    ==================    ==================

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
    Redemptions payable                                                     $ 414,650           $ 1,007,250
                                                                    ------------------    ------------------

            Total liabilities                                                 414,650             1,007,250
                                                                    ------------------    ------------------

PARTNERS' CAPITAL:
    General Partner:
        (327 and 504 Series A Units outstanding)                               84,379               131,110
        (728 and 1,338 Series B Units outstanding)                            152,621               282,923
        (532 and 926 Series C Units outstanding)                               86,921               152,600
    Limited Partners:
        (28,737 and 39,335 Series A Units outstanding)                      7,415,475            10,232,683
        (66,325 and 100,451 Series B Units outstanding)                    13,906,094            21,241,923
        (47,598 and 65,744 Series C Units outstanding)                      7,777,655            10,834,933
                                                                    ------------------    ------------------

            Total partners' capital                                        29,423,145            42,876,172
                                                                    ------------------    ------------------

                TOTAL                                                    $ 29,837,795          $ 43,883,422
                                                                    ==================    ==================

NET ASSET VALUE PER UNIT

    Series A                                                                 $ 258.05              $ 260.14
                                                                    ==================    ==================
    Series B                                                                 $ 209.67              $ 211.47
                                                                    ==================    ==================
    Series C                                                                 $ 163.40              $ 164.80
                                                                    ==================    ==================
</TABLE>

See notes to financial statements.


                                        2
<PAGE>

JOHN W. HENRY & CO./MILLBURN L.P.
(A DELAWARE LIMITED PARTNERSHIP)
--------------------------------

<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998
-------------------------------------------------------------------------------------------------------------------

                                                                2000                1999                1998
                                                           ----------------   -----------------   -----------------

<S>                                                        <C>                <C>                 <C>
INCOME (LOSS) FROM INVESTMENTS (Note 6)                       $ (2,426,515)       $ (6,145,111)        $ 1,867,451
                                                           ----------------   -----------------   -----------------

NET INCOME (LOSS)                                             $ (2,426,515)       $ (6,145,111)        $ 1,867,451
                                                           ================   =================   =================

NET INCOME (LOSS) PER UNIT:

Weighted average number of General Partner
and Limited Partner Units outstanding (Note 5)                     177,217             226,394             264,787
                                                           ================   =================   =================

Net income (loss) per weighted average
General Partner and Limited
Partner Unit                                                      $ (13.69)           $ (27.14)             $ 7.05
                                                           ================   =================   =================
</TABLE>


See notes to financial statements.


                                        3
<PAGE>


JOHN W. HENRY & CO./MILLBURN L.P.
(A DELAWARE LIMITED PARTNERSHIP)


<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998
----------------------------------------------------------------------------------------------------------------

                                                                                     General Partner
                               Series        Series       Series       -----------------------------------------
                                  A            B             C          Series         Series        Series
                                Units        Units         Units           A             B             C
                             ------------ ------------- ------------  ------------  ------------- -------------
<S>                          <C>          <C>           <C>           <C>           <C>           <C>
PARTNERS' CAPITAL,
  DECEMBER 31, 1997               51,772       137,220       92,459     $ 221,605       $456,174     $ 258,899
Redemptions                       (6,590)      (20,461)     (14,122)      (70,937)      (133,279)      (82,775)
Net income (loss)                      -             -            -        (1,422)          (974)       (2,489)
                             ------------ ------------- ------------  ------------  ------------- -------------
PARTNERS' CAPITAL,
  DECEMBER 31, 1998               45,182       116,759       78,337       149,246        321,921       173,635
Redemptions                       (5,343)      (14,970)     (11,667)            -              -             -
Net loss                               -             -            -       (18,136)       (38,998)      (21,035)
                             ------------ ------------- ------------  ------------  ------------- -------------
PARTNERS' CAPITAL,
  DECEMBER 31, 1999               39,839       101,789       66,670       131,110        282,923       152,600
Redemptions                      (10,775)      (34,736)     (18,540)      (44,970)      (113,547)      (57,308)
Net loss                               -             -            -        (1,761)       (16,755)       (8,371)
                             ------------ ------------- ------------  ------------  ------------- -------------
PARTNERS' CAPITAL,
  DECEMBER 31, 2000               29,064        67,053       48,130       $84,379      $ 152,621      $ 86,921
                             ============ ============= ============  ============  ============= =============
</TABLE>

<TABLE>
<CAPTION>
                                            Limited Partners
                             ---------------------------------------------------
                                 Series            Series           Series
                                    A                 B                C               Total
                             ----------------  ---------------- ----------------  ----------------
<S>                          <C>               <C>              <C>               <C>
PARTNERS' CAPITAL,
  DECEMBER 31, 1997              $14,487,473      $ 31,223,304      $16,376,709       $63,024,164
Redemptions                       (1,665,001)       (4,413,933)      (2,362,377)       (8,728,302)
Net income (loss)                    407,813           962,588          501,935         1,867,451
                             ----------------  ---------------- ----------------  ----------------
PARTNERS' CAPITAL,
  DECEMBER 31, 1998               13,230,285        27,771,959       14,516,267        56,163,313
Redemptions                       (1,552,673)       (3,480,805)      (2,108,552)       (7,142,030)
Net loss                          (1,444,929)       (3,049,231)      (1,572,782)       (6,145,111)
                             ----------------  ---------------- ----------------  ----------------
PARTNERS' CAPITAL,
  DECEMBER 31, 1999               10,232,683        21,241,923       10,834,933        42,876,172
Redemptions                       (2,326,886)       (5,929,091)      (2,554,710)      (11,026,512)
Net loss                            (490,322)       (1,406,738)        (502,568)       (2,426,515)
                             ----------------  ---------------- ----------------  ----------------
PARTNERS' CAPITAL,
  DECEMBER 31, 2000              $ 7,415,475      $ 13,906,094      $ 7,777,655       $29,423,145
                             ================  ================ ================  ================
</TABLE>

See notes to financial statements.


                                        4
<PAGE>

JOHN W. HENRY & CO./MILLBURN L.P.
(A DELAWARE LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     John W. Henry & Co./Millburn L.P. (the "Partnership") was organized under
     the Delaware Revised Uniform Limited Partnership Act on August 29, 1989.
     The Partnership's initial offering of Units of limited partnership interest
     ("Series A Units") commenced trading activities on January 5, 1990. A
     second offering of Units of limited partnership interest ("Series B Units")
     commenced trading activities with respect to the Series B Units on January
     28, 1991. A third offering of Units of limited partnership interest
     ("Series C Units") commenced trading activities with respect to the Series
     C Units on January 2, 1992. (Series A, B and C units are, hereinafter,
     collectively referred to as "Units.") The Partnership engages (currently,
     through investments in limited liability companies (see below)) in the
     speculative trading of futures, options on futures and forward contracts on
     a wide range of commodities. Merrill Lynch Investment Partners Inc.
     ("MLIP"), a wholly-owned subsidiary of Merrill Lynch Group, Inc., which, in
     turn, is a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill
     Lynch"), is the general partner of the Partnership. Merrill Lynch Futures
     Inc. ("MLF"), an affiliate of Merrill Lynch, is the Partnership's commodity
     broker. MLIP has agreed to maintain a general partner's interest of at
     least 1% of total capital of each Series of Units. MLIP and each Limited
     Partner share in the profits and losses of such Series in proportion to
     their respective interests in it.

     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, organized in 1986, is the hedge fund, fund of funds and
     managed futures sponsor within MLIM's Alternative Investments Group.

     John W. Henry & Company, Inc. and Millburn Ridgefield Corporation (each an
     "Advisor", together, "Advisors") have been the Partnership's only trading
     advisors since inception. Each Advisor was allocated 50% of the total
     assets of each Series as of the date such Series began trading.
     Subsequently, these allocations have varied over time. MLIP may, in its
     discretion, reallocate assets as of any month-end. The Partnership has
     placed all of its assets under the management of the Advisors through
     investing in private limited liability companies ("Trading LLCs"), as
     described in Note 6. Certain of the following notes to financial statements
     are directly related to Partnership assets managed by the Advisors in the
     Trading LLCs.

     ESTIMATES

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America 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 and the reported
     amounts of revenues and expenses during the reporting period. Actual
     results could differ from those estimates.


                                       5
<PAGE>

     REVENUE RECOGNITION

     See Note 6 for discussion of revenue recognition for the Partnership's
     investment in Trading LLCs.

     OPERATING EXPENSES

     MLIP pays all routine operating expenses, including legal, accounting,
     printing, postage and similar administrative expenses. MLIP receives an
     administrative fee as well as a portion of the brokerage commissions paid
     to MLF by the Partnership (see Note 2).

     INCOME TAXES

     No provision for income taxes has been made in the accompanying financial
     statements as each Partner is individually responsible for such Partner's
     respective share of the income and expenses of the series in which such
     partner is invested as reported for income tax purposes.

     REDEMPTIONS

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

     DISSOLUTION OF THE PARTNERSHIP

     The Partnership will terminate on December 31, 2016 or at an earlier date
     if certain conditions occur, as well as under certain other circumstances
     as set forth in the Limited Partnership Agreement.

2.   RELATED PARTY TRANSACTIONS

     The Partnership's U.S. dollar assets invested in Trading LLCs are
     maintained at MLF. On assets held in U.S. dollars, Merrill Lynch credits
     the Trading LLCs with interest at the prevailing 91-day U.S. Treasury bill
     rate. The Trading LLCs are 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 Trading LLCs, from possession of such assets.

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

     The Partnership pays brokerage commissions to MLF through the Trading LLCs
     at a flat monthly rate of .708 of 1% (a 8.50% annual rate) of the
     Partnership's month-end assets. Prior to October 1, 2000, the rate was .792
     of 1% (a 9.50% annual rate). The Partnership also pays MLIP a monthly
     administrative fee through the Trading LLCs of .21 of 1% (an 0.25% annual
     rate) of the Partnership's month-end assets. Month-end assets are not
     reduced for purposes of calculating brokerage commissions and
     administrative fees by any accrued brokerage commissions, administrative
     fees, Profit Shares or other fees or charges.

     MLIP estimates that the round-turn equivalent rates charged to ML
     Millburn Global L.L.C. (Millburn LLC) during the years ended 2000, 1999
     and 1998 were approximately $324, $461 and $151, respectively. MLIP
     estimates that the round-turn equivalent rates charged to ML JWH Financial
     and Metals Portfolio L.L.C. ("JWH LLC") during the years ended 2000, 1999
     and 1998 were approximately $146, $316 and $133, respectively.

     MLF pays the Advisors annual consulting fees of 2% of the average month-end
     assets allocated to them for management. One Advisor reduced its fee from
     4% to 2% as of October 1, 2000.


                                       6
<PAGE>

3.   STATEMENTS OF OPERATIONS BY SERIES

     The profit and loss of the Series A, Series B and Series C units for the
     years ended December 31, 2000, 1999 and 1998 is as follows:

<TABLE>
<CAPTION>
                                                                        Series A
                                                    -----------------------------------------------
                                                         2000             1999            1998
                                                    ---------------  ---------------  -------------
<S>                                                 <C>              <C>              <C>
INCOME (LOSS) FROM INVESTMENTS (Note 6)                 $ (492,083)    $ (1,463,065)     $ 406,391
                                                    ---------------  ---------------  -------------
NET INCOME (LOSS)                                       $ (492,083)    $ (1,463,065)     $ 406,391
                                                    ===============  ===============  =============
NET INCOME (LOSS) PER UNIT OF
PARTNERSHIP INTEREST:
Weighted average number
of units outstanding (Note 5)                               35,027           42,998         48,581
                                                    ---------------  ---------------  -------------
Net income (loss) per weighted average
General Partner and Limited Partner Unit                  $ (14.05)        $ (34.03)        $ 8.37
                                                    ===============  ===============  =============

                                                                        Series B
                                                    -----------------------------------------------
                                                         2000             1999            1998
                                                    ---------------  ---------------  -------------

INCOME (LOSS) FROM INVESTMENTS (Note 6)               $ (1,423,493)    $ (3,088,229)     $ 961,614
                                                    ---------------  ---------------  -------------
NET INCOME (LOSS)                                     $ (1,423,493)    $ (3,088,229)     $ 961,614
                                                    ===============  ===============  =============
NET INCOME (LOSS) PER UNIT OF
PARTNERSHIP INTEREST:
Weighted average number
of units outstanding (Note 5)                               85,100          108,954        129,195
                                                    ---------------  ---------------  -------------
Net income (loss) per weighted average
General Partner and Limited Partner Unit                  $ (16.73)        $ (28.34)        $ 7.44
                                                    ===============  ===============  =============

                                                                        Series C
                                                    -----------------------------------------------
                                                         2000             1999            1998
                                                    ---------------  ---------------  -------------

INCOME (LOSS) FROM INVESTMENTS (Note 6)                 $ (510,939)    $ (1,593,817)     $ 499,446
                                                    ---------------  ---------------  -------------
NET INCOME (LOSS)                                       $ (510,939)    $ (1,593,817)     $ 499,446
                                                    ===============  ===============  =============
NET INCOME (LOSS) PER UNIT OF
PARTNERSHIP INTEREST:
Weighted average number
of units outstanding (Note 5)                               57,090           74,442         87,011
                                                    ---------------  ---------------  -------------
Net income (loss) per weighted average
General Partner and Limited Partner Unit                   $ (8.95)        $ (21.41)        $ 5.74
                                                    ===============  ===============  =============
</TABLE>


                                        7
<PAGE>

4.    ADVISORY AGREEMENTS

      The Trading LLCs entered into the Advisory Agreements with the Advisors
      (see Note 6).

      Profit Shares of 20%, of any New Trading Profit, as defined, either as of
      the end of each calendar quarter or year, were paid to each Advisor based
      on the performance of the Partnership account managed by such Advisor,
      irrespective of the overall performance of the Partnership. Profit Shares
      are also paid out in respect of Units redeemed as of the end of interim
      months, to the extent the applicable percentage of any New Trading Profits
      attributable to such Units. One Advisor's Profit Share rate increased from
      15% to 20% as of October 1, 2000.

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

5.    WEIGHTED AVERAGE UNITS

      The weighted average number of Units of each series outstanding was
      computed for purposes of disclosing net income per weighted average Unit.
      The weighted average number of Units of each series outstanding for the
      years ended December 31, 2000, 1999 and 1998 equals the Units of such
      series outstanding as of such date, adjusted proportionately for Units
      redeemed based on the respective length of time each was outstanding
      during the year.

6.    INVESTMENTS

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

      At December 31, 2000 and 1999, the Partnership had investments in the ML
      JWH Financial and Metals Portfolio LLC ("JWH LLC") and ML Millburn Global
      LLC ("Millburn LLC") as follows:

<TABLE>
                        2000                   1999
                 ------------------     ------------------

<S>              <C>                    <C>
JWH LLC               $ 15,281,744           $ 19,843,543
Millburn LLC            14,141,401             23,032,629
                 ------------------     ------------------
Total                 $ 29,423,145           $ 42,876,172
                 ==================     ==================
</TABLE>


                                        8
<PAGE>

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

<TABLE>
<CAPTION>
    For the year ended            Total            Brokerage        Administrative        Profit       Income (loss) from
     December 31, 2000          Revenues          Commissions            Fees             Shares          Investments
                            ------------------  ----------------- -------------------  --------------  -------------------
      Series A Units
----------------------------

<S>                         <C>                 <C>               <C>                  <C>             <C>
JWH LLC                             $ 580,611          $ 345,158             $ 9,317             $ -            $ 226,136
Millburn LLC                         (329,611)           378,419              10,189               -             (718,219)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                               $ 251,000          $ 723,577            $ 19,506             $ -           $ (492,083)
                            ==================  ================= ===================  ==============  ===================

      Series B Units
----------------------------

JWH LLC                             $ 884,837          $ 680,162            $ 18,319             $ -            $ 186,356
Millburn LLC                         (836,135)           753,461              20,253               -           (1,609,849)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                                $ 48,702        $ 1,433,623            $ 38,572             $ -         $ (1,423,493)
                            ==================  ================= ===================  ==============  ===================

      Series C Units
----------------------------

JWH LLC                             $ 602,500          $ 355,362             $ 9,591             $ -            $ 237,547
Millburn LLC                         (344,867)           393,034              10,585               -             (748,486)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                               $ 257,633          $ 748,396            $ 20,176             $ -           $ (510,939)
                            ==================  ================= ===================  ==============  ===================

    Total - All Series
----------------------------

JWH LLC                           $ 2,067,948        $ 1,380,682            $ 37,227             $ -            $ 650,039
Millburn LLC                       (1,510,613)         1,524,914              41,027               -           (3,076,554)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                               $ 557,335        $ 2,905,596            $ 78,254             $ -         $ (2,426,515)
                            ==================  ================= ===================  ==============  ===================
</TABLE>


                                        9
<PAGE>

<TABLE>
<CAPTION>

    For the year ended            Total            Brokerage        Administrative        Profit           Loss from
     December 31, 1999          Revenues          Commissions            Fees             Shares          Investments
                            ------------------  ----------------- ------------------  ---------------  -------------------
      Series A Units
--------------------------
<S>                         <C>                 <C>               <C>                  <C>             <C>
JWH LLC                            $ (710,851)         $ 593,051            $ 15,604             $ -         $ (1,319,506)
Millburn LLC                          484,166            605,625              15,937           6,163             (143,559)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                              $ (226,685)       $ 1,198,676            $ 31,541         $ 6,163         $ (1,463,065)
                            ==================  ================= ===================  ==============  ===================

      Series B Units
--------------------------

JWH LLC                          $ (1,520,888)       $ 1,214,897            $ 31,972             $ -         $ (2,767,757)
Millburn LLC                          973,195          1,251,363              32,930           9,374             (320,472)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                              $ (547,693)       $ 2,466,260            $ 64,902         $ 9,374         $ (3,088,229)
                            ==================  ================= ===================  ==============  ===================

      Series C Units
--------------------------

JWH LLC                            $ (775,390)         $ 647,501            $ 17,040             $ -         $ (1,439,931)
Millburn LLC                          537,575            666,722              17,545           7,194             (153,886)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                              $ (237,815)       $ 1,314,223            $ 34,585         $ 7,194         $ (1,593,817)
                            ==================  ================= ===================  ==============  ===================

    Total - All Series
--------------------------

JWH LLC                          $ (3,007,129)       $ 2,455,449            $ 64,616             $ -         $ (5,527,194)
Millburn LLC                        1,994,936          2,523,710              66,412          22,731             (617,917)
                            ------------------  ----------------- -------------------  --------------  -------------------

Total                            $ (1,012,193)       $ 4,979,159           $ 131,028        $ 22,731         $ (6,145,111)
                            ==================  ================= ===================  ==============  ===================
</TABLE>


                                       10
<PAGE>

<TABLE>
<CAPTION>
    For the year ended            Total            Brokerage        Administrative        Profit          Income from
     December 31, 1998          Revenues          Commissions            Fees             Shares          Investments
                            ------------------  -----------------  ------------------- --------------  -------------------
      Series A Units
--------------------------
<S>                         <C>                 <C>               <C>                  <C>             <C>
JWH LLC                             $ 995,747          $ 630,513             $ 16,592       $ 76,657            $ 271,985
Millburn LLC                          829,825            633,628               16,674         45,117              134,406
                            ------------------  -----------------  ------------------- --------------  -------------------

Total                             $ 1,825,572        $ 1,264,141             $ 33,266      $ 121,774            $ 406,391
                            ==================  =================  =================== ==============  ===================

      Series B Units
--------------------------

JWH LLC                           $ 2,200,199        $ 1,356,787             $ 35,705      $ 167,835            $ 639,872
Millburn LLC                        1,832,991          1,374,689               36,176        100,384              321,742
                            ------------------  -----------------  ------------------- --------------  -------------------

Total                             $ 4,033,190        $ 2,731,476             $ 71,881      $ 268,219            $ 961,614
                            ==================  =================  =================== ==============  ===================

      Series C Units
--------------------------

JWH LLC                           $ 1,148,318          $ 712,552             $ 18,752       $ 88,069            $ 328,945
Millburn LLC                          962,693            721,776               18,994         51,422              170,501
                            ------------------  -----------------  ------------------- --------------  -------------------

Total                             $ 2,111,011        $ 1,434,328             $ 37,746      $ 139,491            $ 499,446
                            ==================  =================  =================== ==============  ===================

    Total - All Series
--------------------------

JWH LLC                           $ 4,344,264        $ 2,699,852             $ 71,049      $ 332,561          $ 1,240,802
Millburn LLC                        3,625,509          2,730,093               71,844        196,923              626,649
                            ------------------  -----------------  ------------------- --------------  -------------------

Total                             $ 7,969,773        $ 5,429,945            $ 142,893      $ 529,484          $ 1,867,451
                            ==================  =================  =================== ==============  ===================
</TABLE>


                                       11
<PAGE>


Condensed statements of financial condition and statements of operations for JWH
LLC and Millburn LLC are set forth as follows:

<TABLE>
<CAPTION>
                                JWH                  Millburn                  JWH                 Millburn
                                LLC                     LLC                    LLC                    LLC
                         December 31, 2000       December 31, 2000      December 31, 1999      December 31, 1999
                       ----------------------  ---------------------- ---------------------- ----------------------

<S>                    <C>                     <C>                    <C>                    <C>
Assets                          $ 15,631,088            $ 14,448,475           $ 20,495,709           $ 23,769,789
                       ======================  ====================== ====================== ======================

Liabilities                        $ 349,344               $ 307,074              $ 652,166              $ 737,160
Members' Capital                  15,281,744              14,141,401             19,843,543             23,032,629
                       ----------------------  ---------------------- ---------------------- ----------------------

Total                           $ 15,631,088            $ 14,448,475           $ 20,495,709           $ 23,769,789
                       ======================  ====================== ====================== ======================


                        For the year ended      For the year ended     For the year ended     For the year ended
                         December 31, 2000       December 31, 2000      December 31, 1999      December 31, 1999
                       ----------------------  ---------------------- ---------------------- ----------------------

Revenues                         $ 2,067,948            $ (1,510,613)          $ (3,007,129)           $ 1,994,936

Expenses                           1,417,909               1,565,941              2,520,065              2,612,853
                       ----------------------  ---------------------- ---------------------- ----------------------

Net Income (Loss)                  $ 650,039            $ (3,076,554)          $ (5,527,194)            $ (617,917)
                       ======================  ====================== ====================== ======================


                        For the year ended      For the year ended
                         December 31, 1998       December 31, 1998
                       ----------------------  ----------------------

Revenues                         $ 1,391,001             $ 3,593,650

Expenses                           4,069,362               3,108,411
                       ----------------------  ----------------------

Net Income (Loss)               $ (2,678,361)              $ 485,239
                       ======================  ======================
</TABLE>


                                       12
<PAGE>



7.   FAIR VALUE AND OFF-BALANCE SHEET RISK

     For the year ended December 31, 2000, the Partnership invested all of
     its assets in Trading LLCs. Accordingly, the Partnership is invested
     indirectly in derivative instruments, but does not itself hold any
     derivative instrument positions. The application of the provisions of
     Statement of Financial Accounting Standards ("SFAS") No. 133, as amended
     by SFAS No. 137 and SFAS No. 138, did not have a significant effect on the
     financial statements of the Partnership.

     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 resulted
     in changes in the Partnership's net unrealized profit (loss) on such
     derivative instruments as reflected in the Statements of Financial
     Condition or, with respect to Partnership assets invested in Trading LLCs,
     the net unrealized profit (loss) as reflected in the respective Statements
     of Financial Condition of the Trading LLCs. The Partnership's exposure to
     market risk is influenced by a number of factors, including the
     relationships among the derivative instruments held by the Partnership,
     through the Trading LLCs, as well as the volatility and liquidity of such
     markets in which such 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 selected from time to time for the Partnership, calculating the
     Net Asset Value of the Advisors' respective Partnership accounts and
     Trading LLC accounts as of the close of business on each day and reviewing
     outstanding positions for over-concentrations both on an Advisor-by-Advisor
     and on an overall Partnership basis. While MLIP does not itself intervene
     in the markets to hedge or diversify the Partnership's market exposure,
     MLIP may urge Advisors to reallocate positions or itself reallocate
     Partnership assets among Advisors (although typically only as of the end of
     a month) in an attempt to avoid over-concentration. However, such
     interventions are unusual. Except in cases in which it appears that an
     Advisor has begun to deviate from past practice and trading policies or to
     be trading erratically, MLIP's basic risk control procedures consist simply
     of the ongoing process of advisor monitoring and selection, with the market
     risk controls being applied by the Advisors themselves.

     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.


                                       13
<PAGE>

     The Partnership, through the Trading LLC's,  has credit risk in respect of
     its counterparties and brokers, but attempts to mitigate this risk by
     dealing almost exclusively with Merrill Lynch entities as clearing brokers.

     The Partnership, through the Trading LLCs, 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
     Statements of Financial Condition under Equity in commodity futures trading
     accounts.

                               * * * * * * * * * *

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




                               Michael L. Pungello
                             Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                               General Partner of
                        John W. Henry & Co./Millburn L.P.



                                     14
<PAGE>


                                   ML MILLBURN GLOBAL L.L.C.
                                     (A DELAWARE LIMITED LIABILITY COMPANY)


                                     Financial Statements for the years ended
                                     December 31, 2000 and 1999 and Independent
                                     Auditors' Report


[MERRILL LYNCH COMPANY LOGO]

<PAGE>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)


<TABLE>
<CAPTION>
TABLE OF CONTENTS
----------------------------------------------------------

                                                     Page
                                                     ----

<S>                                                  <C>
INDEPENDENT AUDITORS' REPORT                             1

FINANCIAL STATEMENTS FOR THE YEARS ENDED
  DECEMBER 31, 2000 AND 1999:

  Statements of Financial Condition                      2

  Statements of Operations                               3

  Statements of Changes in Member's Capital              4

  Notes to Financial Statements                        5-8
</TABLE>


<PAGE>

INDEPENDENT AUDITORS' REPORT



To the Members of ML Millburn Global L.L.C.:

We have audited the accompanying statements of financial condition of ML
Millburn Global L.L.C. (the "Company") as of December 31, 2000 and 1999, and the
related statements of operations and of changes in member's capital for the
years then ended. 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of ML Millburn Global L.L.C. as of December 31,
2000 and 1999, and the results of its operations and changes in its member's
capital for the years then ended in conformity with accounting principles
generally accepted in the United States of America.


DELOITTE & TOUCHE LLP


New York, New York
February 5, 2001


<PAGE>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

<TABLE>
<CAPTION>
STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2000 AND 1999
---------------------------------------------------------------------------------------------------------


ASSETS                                                                  2000                 1999
                                                                 -------------------   ------------------

<S>                                                              <C>                   <C>
Equity in commodity futures trading accounts:
    Cash and option premiums                                           $ 12,338,439         $ 22,574,430
    Net unrealized profit on open contracts                               2,042,770            1,088,672
Accrued interest (Note 2)                                                    67,266              106,687
                                                                 -------------------   ------------------

                TOTAL                                                  $ 14,448,475         $ 23,769,789
                                                                 ===================   ==================

LIABILITIES AND MEMBER'S CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 2)                                $ 102,325            $ 188,158
    Administrative fees payable (Note 2)                                      3,010                4,952
    Withdrawals payable                                                     201,739              544,050
                                                                 -------------------   ------------------

            Total liabilities                                               307,074              737,160
                                                                 -------------------   ------------------

MEMBER'S CAPITAL:
    Voting Member                                                        14,141,401           23,032,629
                                                                 -------------------   ------------------

            Total Member's capital                                       14,141,401           23,032,629
                                                                 -------------------   ------------------

                TOTAL                                                  $ 14,448,475         $ 23,769,789
                                                                 ===================   ==================
</TABLE>



See notes to financial statements.


                                       -2-
<PAGE>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
--------------------------------------------------------------------------------

                                              2000                   1999
                                       --------------------     ----------------
<S>                                    <C>                      <C>
REVENUES:

Trading profit (loss):
    Realized                                  $ (3,446,018)           $ 936,083
    Change in unrealized                           953,999             (215,763)
                                       --------------------     ----------------

        Total trading results                   (2,492,019)             720,320

Interest income (Note 2)                           981,406            1,274,615
                                       --------------------     ----------------

        Total revenues                          (1,510,613)           1,994,935
                                       --------------------     ----------------

EXPENSES:

    Brokerage commissions (Note 2)               1,524,912            2,523,710
    Profit Shares (Note 3)                               -               22,730
    Administrative fees (Note 2)                    41,028               66,413
                                       --------------------     ----------------

        Total expenses                           1,565,940            2,612,853
                                       --------------------     ----------------

NET LOSS                                      $ (3,076,553)           $(617,918)
                                       ====================     ================
</TABLE>


See notes to financial statements.


                                      -3-
<PAGE>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)


<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN MEMBER'S CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
--------------------------------------------------------------------------------

<S>                                                          <C>
MEMBER'S CAPITAL,
  DECEMBER 31, 1998                                               $ 27,277,114

Withdrawals                                                         (3,626,567)

Net loss                                                              (617,918)
                                                             ------------------

MEMBER'S CAPITAL,
  DECEMBER 31, 1999                                                 23,032,629

Withdrawals                                                         (5,814,675)

Net loss                                                            (3,076,553)
                                                             ------------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2000                                               $ 14,141,401
                                                             ==================
</TABLE>

See notes to financial statements.


                                      -4-
<PAGE>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      ORGANIZATION

      ML Millburn Global L.L.C. (the "Company") was organized under the Delaware
      Limited Liability Company Act on November 22, 1996 and commenced trading
      activities on December 2, 1996. The Company engages in the speculative
      trading of futures, options on futures and forward contracts on a wide
      range of commodities. Millburn Ridgefield Corporation ("Millburn") is the
      trading advisor to the Company. Merrill Lynch Investment Partners
      ("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 Merrill
      Lynch, is the Company's commodity broker. 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, which can be
      held by non-United States investment funds sponsored by MLIP, would 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. Currently, there are no Non-Voting
      Members. Management of the Company is vested solely in the Voting
      Interests, which can be held by United States limited partnerships.
      Currently, there is only one Voting Member of the Company. The Voting
      Member controls all business activities and affairs of the Company,
      subject to the trading authority vested in and delegated to Millburn and
      the administrative authority vested in and delegated to MLIP. The Voting
      Member is a "commodity pool" sponsored and managed by MLIP.

      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, organized in 1986, is the hedge fund, funds of funds
      and managed futures sponsor within MLIM's Alternative Investments Group.

      ESTIMATES

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

      REVENUE RECOGNITION

      Commodity futures, options on futures and forward contract transactions
      are recorded on the trade date, and open contracts are reflected in Net
      unrealized profit on open contracts in the Statements of Financial
      Condition at the difference between the original contract value and the
      market value (for those commodity interests for which market quotations
      are readily available) or at fair value. The change in net unrealized
      profit (loss) on open contracts from one period to the next is reflected
      in Change in unrealized under Trading profit (loss) 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 dates of the
      Statements of Financial Condition. Income and expense items denominated in
      currencies other than the U.S. dollar are translated into U.S. dollars at
      the rates in effect during the period. Gains and losses resulting from the
      translation to U.S. dollars are reported in total trading results
      currently.

      OPERATING EXPENSES

      MLIP pays for all operating costs (including all legal, accounting,
      printing, postage and similar administrative expenses) of the Company.

      INCOME TAXES

      No provision for income taxes has been made in the accompanying financial
      statements as the 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 distributions have been made by the Company for the years ended
      December 31, 2000 or 1999.

      WITHDRAWALS

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

      DISSOLUTION

      The Company will terminate on December 31, 2046 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 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 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 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.


                                      -6-
<PAGE>

      Following the allocation of the Company's trading profit (loss) and
      interest income among the Member's capital account, MLIP calculates the
      brokerage commissions, administrative fees, Profit Shares and other
      expenses due from the Company to third parties. Such commissions, fees and
      expenses are specifically calculated for the Member as of the end of each
      accounting period and deducted from the Member's capital account and paid
      out by the Company. The Company currently pays brokerage commissions to
      MLF at flat monthly rate of .708 of 1% (a 8.50% annual rate), reflecting
      the fee arrangement between the Member and MLF. Prior to October 1, 2000,
      the Company's brokerage commission rate was .792 of 1% (a 9.50% annual
      rate).

      The Company pays MLIP a monthly administrative fee of .021 of 1% (a .25%
      annual rate) of the 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 Millburn an annual consulting fee of 2% of the Company's average
      month-end assets, after reduction for a portion of brokerage commissions.

3.    ADVISORY AGREEMENT

      The Advisory Agreement between the Company and Millburn has remained
      essentially unchanged since the inception of the Company. This Agreement
      is in effect for successive one-year terms, but, in fact, given the single
      advisor structure of the Company, the Company would terminate were
      Millburn to withdraw. Millburn determines the commodity futures, options
      on futures and forward contract trades to be made on behalf of the
      Company, subject to certain rights reserved by MLIP.

      The Company pays to Millburn an annual Profit Share equal to 20% of any
      New Trading Profit, as defined, attributable to the Member's respective
      capital accounts. Profit Shares are calculated separately in respect of
      the Member's respective capital accounts. Profit Shares are also paid to
      Millburn upon the withdrawal of capital from the Company by the Member for
      whatever purpose, other than to pay expenses.

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.
      SFAS No. 133 is further amended by SFAS No. 138, which clarifies issues
      surrounding interest risk, foreign currency denominated items, normal
      purchases and sales and net hedging. 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. The
      application of the provisions of SFAS No. 133, as amended by SFAS No. 137
      and SFAS No. 138, did not have 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,


                                      -7-
<PAGE>

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

      MARKET RISK

      Derivative instruments involve varying degrees of off-balance sheet market
      risk, and changes in the level or volatility of interest rates, foreign
      currency exchange rates or the market values of the underlying financial
      instruments or commodities underlying such derivative instruments
      frequently 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 in the markets
      in which such 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
      Millburn, calculating the Net Asset Value of the Company and of the
      Member's respective capital accounts 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 consult with Millburn concerning the
      possibility of Millburn reducing trading leverage or market
      concentrations. However, such interventions are unusual. Except in cases
      in which it appears that Millburn has begun to deviate from past practice
      and trading policies or to be trading erratically, MLIP's basic risk
      control procedures consist simply of the ongoing process of advisor
      monitoring with the market risk controls being applied by Millburn.

      CREDIT RISK

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

      The 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 attempts to
      mitigate this risk by dealing exclusively with Merrill Lynch entities as
      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 Statement of Financial Condition
      under Equity in Commodity futures trading accounts.


                                      -8-
<PAGE>

                               * * * * * * * * * *

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



                               Michael L. Pungello
                             Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                           Commodity Pool Operator of
                            ML Millburn Global L.L.C.



                                      -9-
<PAGE>

                                ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
                                (A DELAWARE LIMITED LIABILITY COMPANY)


                                Financial Statements for the years ended
                                December 31, 2000 and 1999 and Independent
                                Auditors' Report






[MERRILL LYNCH COMPANY LOGO]

<PAGE>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)


<TABLE>
<CAPTION>
TABLE OF CONTENTS
-----------------------------------------------------------------

                                                             Page
                                                             ----
<S>                                                          <C>
INDEPENDENT AUDITORS' REPORT                                    1

FINANCIAL STATEMENTS FOR THE YEARS ENDED
  DECEMBER 31, 2000 AND 1999

  Statements of Financial Condition                             2

  Statements of Operations                                      3

  Statements of Changes in Member's Capital                     4

  Notes to Financial Statements                               5-8
</TABLE>


<PAGE>

INDEPENDENT AUDITORS' REPORT



To the Members of
  ML JWH Financial and Metals Portfolio L.L.C.:

We have audited the accompanying statements of financial condition of ML JWH
Financial and Metals Portfolio L.L.C. (the "Company") as of December 31, 2000
and 1999, and the related statements of operations and of changes in member's
capital for the years then ended. 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of ML JWH Financial and Metals Portfolio L.L.C.
as of December 31, 2000 and 1999, and the results of its operations and changes
in its member's capital for the years then ended in comformity with generally
accepted accounting principles in the United States of America.


DELOITTE & TOUCHE LLP


New York, New York
February 5, 2001


<PAGE>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

<TABLE>
<CAPTION>
STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2000 AND 1999
------------------------------------------------------------------------------------------------

                                                           2000                     1999
                                                     ------------------       ------------------
<S>                                                  <C>                      <C>
ASSETS

Equity in commodity futures trading accounts:
    Cash and option premiums                              $ 12,660,641             $ 20,105,266
    Net unrealized profit on open contracts                  2,902,538                  297,749
Accrued interest (Note 2)                                       67,909                   92,694
                                                     ------------------       ------------------

                TOTAL                                     $ 15,631,088             $ 20,495,709
                                                     ==================       ==================

LIABILITIES AND MEMBER'S CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 2)                   $ 110,579                $ 162,099
    Administrative fees payable (Note 2)                         3,252                    4,266
    Withdrawals payable                                        235,513                  485,801
                                                     ------------------       ------------------

            Total liabilities                                  349,344                  652,166
                                                     ------------------       ------------------

MEMBER'S CAPITAL:
    Voting Member                                           15,281,744               19,843,543
                                                     ------------------       ------------------

            Total Member's capital                          15,281,744               19,843,543
                                                     ------------------       ------------------

                TOTAL                                     $ 15,631,088             $ 20,495,709
                                                     ==================       ==================
</TABLE>


See notes to financial statements.


                                      -2-
<PAGE>


ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
------------------------------------------------------------------------------------
                                             2000                       1999
                                         -------------------      ------------------
<S>                                      <C>                      <C>
REVENUES:

Trading (loss) profit:
    Realized                                   $ (1,407,367)           $ (1,431,693)
    Change in unrealized                          2,604,788              (2,776,920)
                                         -------------------      ------------------

        Total trading results                     1,197,421              (4,208,613)

Interest income (Note 2)                            870,526               1,201,484
                                         -------------------      ------------------

        Total revenues                            2,067,947              (3,007,129)
                                         -------------------      ------------------

EXPENSES:

    Brokerage commissions (Note 2)                1,380,682               2,455,447
    Administrative fees (Note 2)                     37,227                  64,617
                                         -------------------      ------------------

        Total expenses                            1,417,909               2,520,064
                                         -------------------      ------------------

NET INCOME (LOSS)                                 $ 650,038            $ (5,527,193)
                                         ===================      ==================
</TABLE>


See notes to financial statements.


                                      -3-
<PAGE>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)


<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN MEMBER'S CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
---------------------------------------------------------------------------------------------
                               Voting Member
                              ----------------

<S>                           <C>
MEMBER'S CAPITAL,
  DECEMBER 31, 1998              $ 28,886,199

Withdrawals                        (3,515,463)

Net Loss                           (5,527,193)
                              ----------------

MEMBER'S CAPITAL,
  DECEMBER 31, 1999                19,843,543

Withdrawals                        (5,211,837)

Net Income                            650,038
                              ----------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2000              $ 15,281,744
                              ================
</TABLE>


See notes to financial statements.


                                      -4-
<PAGE>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS

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

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      ORGANIZATION

      ML JWH Financial and Metals Portfolio L.L.C. (the "Company") was
      organized under the Delaware Limited Liability Company Act on
      September 19, 1996 and commenced trading activities on October 1,
      1996. The Company engages in the speculative trading of futures,
      options on futures and forward contracts on a wide range of
      commodities. John W. Henry & Company, Inc. ("JWH-Registered
      Trademark-") is the trading advisor to the Company. 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. 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, but the Non-Voting Interests, which can be
      held by non-United States investment funds sponsored by MLIP, would
      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. Currently, there are no
      Non-Voting Members. Management of the Company is vested solely in the
      Voting Interests, which are held by United States limited
      partnerships. Currently, there is only one Voting Member of the
      Company. The Voting Member controls all business activities and
      affairs of the Company subject to the trading authority vested in and
      delegated to JWH and the administrative authority vested in and
      delegated to MLIP. The Voting Member is a "commodity pool" sponsored
      and managed by MLIP.

      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, organized in 1986, is the hedge fund, fund of funds and
      managed futures sponsor within MLIM's Alternative Investments Group.

      ESTIMATES

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

      REVENUE RECOGNITION

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


                                      -5-
<PAGE>

      unrealized profit on open contracts from one period to the next is
      reflected in Change in unrealized under Trading (loss) profit, in the
      Statements of Operations.

      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 dates of the
      Statements of Financial Condition. Income and expense items denominated in
      currencies other than the U.S. dollar are translated into U.S. dollars at
      the rates in effect during the period. Gains and losses resulting from the
      translation to U.S. dollars are reported in total trading results
      currently.

      OPERATING EXPENSES

      MLIP pays for all operating costs (including all legal, accounting,
      printing, postage and similar administrative expenses) of the Company.

      INCOME TAXES

      No provision for income taxes has been made in the accompanying financial
      statements as the 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 distributions had been made by the Company for the years ended December
      31, 2000 or 1999.

      WITHDRAWALS

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

      DISSOLUTION

      The Company will terminate on September 30, 2046 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 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 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 Company, from
      possession of such assets.


                                      -6-
<PAGE>

      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 (loss) profit and
      interest income among the Member's respective capital accounts, MLIP
      calculates the brokerage commissions, Profit Shares, administrative fees
      and other expenses due from the Company to third parties. Such
      commissions, fees, Profit Shares and expenses are specifically calculated
      for the Member as of the end of each accounting period and deducted from
      Member's capital account and paid out by the Company. The Company
      currently pays brokerage commissions to MLF at flat monthly rate of .708
      of 1% (an 8.5% annual rate). Prior to October 1, 2000, the Company's
      brokerage commission was .792 of 1% (a 9.5% annual rate).

      The Company pays MLIP a monthly administrative fee of .021 of 1% (a .25%
      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 Advisor an annual consulting fee of 2%, reduced from 4% on
      October 1, 2000, of the Company's average month-end assets, after
      reduction for a portion of the brokerage commissions.

3.    ADVISORY AGREEMENT

      The Advisory Agreement between the Company and JWH-Registered
      Trademark- is in effect for successive one-year terms, but, in fact,
      given the single advisor structure of the Company, the Company would
      terminate were JWH-Registered Trademark- to withdraw. JWH-Registered
      Trademark- determines the commodity futures, options on futures and
      forward contract trades to be made on behalf of the Company, subject
      to certain Company trading policies and to certain rights reserved by
      MLIP.

      The Company pays to JWH-Registered Trademark- a quarterly Profit Share
      equal to 20%, increased from 15% on October 1, 2000, of any New
      Trading Profit, as defined, attributable to the Member's respective
      capital accounts. Profit Shares are calculated separately in respect
      of the Member's respective capital accounts. Profit Shares are
      determined as of the end of each calendar quarter and are also paid to
      JWH-Registered Trademark- upon the withdrawal of capital from the
      Company by a Member for whatever purpose, other than to pay expenses.

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.
      SFAS No. 133 is further amended by SFAS No. 138, which clarifies issues
      surrounding interest risk, foreign currency denominated items, normal
      purchases and sales and net hedging. 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. The
      application of the provisions of SFAS No. 133, as amended by SFAS No. 137
      and SFAS No. 138, did not have a significant effect on the financial
      statements.


                                      -7-
<PAGE>

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

      MARKET RISK

      Derivative instruments involve varying degrees of off-balance sheet market
      risk, and changes in the level or volatility of interest rates, foreign
      currency exchange rates or the market values of the underlying financial
      instruments or commodities underlying such derivative instruments
      frequently 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 in the markets
      in which such 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 JWH-Registered Trademark-, calculating the Net Asset Value of the
      Company and of the Member's respective capital accounts 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
      consult with JWH-Registered Trademark- concerning the possibility of
      JWH-Registered Trademark- reducing trading leverage or market
      concentrations. However, such interventions are unusual. Except in
      cases in which it appears that JWH-Registered Trademark- has begun to
      deviate from past practice and trading policies or to be trading
      erratically, MLIP's basic risk control procedures consist simply of
      the ongoing process of advisor monitoring with the market risk
      controls being applied by JWH-Registered Trademark-.

      CREDIT RISK

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

      The credit risk associated with these instruments from counterparty
      nonperformance is the net unrealized profit, if any, included in the
      Statements of Financial Condition. The Company attempts to mitigate this
      risk by dealing exclusively with Merrill Lynch entities as 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 Statements of Financial
      Condition under Equity in commodity futures accounts.


                                      -8-
<PAGE>

                                * * * * * * * * *

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



                               Michael L. Pungello
                             Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                             Commodity Pool Operator
                  ML JWH Financial and Metals Portfolio L.L.C.



                                      -9-