<PAGE>

                                                                EXHIBIT 13.01(a)


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


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




[LOGO] Merrill Lynch
<PAGE>

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


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


                                                                            Page
                                                                            ----

INDEPENDENT AUDITORS' REPORT                                                 1

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

  Statements of Financial Condition                                          2

  Statements of Operations                                                   3

  Statements of Changes in Members' Capital                                  4

  Notes to Financial Statements                                            5-9
<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, 1999
and 1998, and the related statements of operations and of changes in members'
capital for the years ended December 31, 1999 and 1998. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the 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, 1999 and 1998, and the results of its operations and changes
in members' capital for the years ended December 31, 1999 and 1998 in comformity
with generally accepted accounting principles.


DELOITTE & TOUCHE LLP


New York, New York
February 4, 2000


<PAGE>

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

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



<TABLE>
<CAPTION>


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

Equity in commodity futures trading accounts:
    Cash and option premiums                                  $ 20,105,266             $ 26,100,432
    Net unrealized profit on open contracts                        297,749                3,074,669
Accrued interest (Note 2)                                           92,694                  102,296
                                                         ------------------       ------------------

                TOTAL                                         $ 20,495,709             $ 29,277,397
                                                         ==================       ==================

LIABILITIES AND MEMBERS' CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 2)                    $    162,099             $    231,621
    Administrative fees payable (Note 2)                             4,266                    6,095
    Withdrawals payable                                            485,801                  153,482
                                                         ------------------       ------------------

            Total liabilities                                      652,166                  391,198
                                                         ------------------       ------------------

MEMBERS' CAPITAL:
    Voting Members                                              19,843,543               28,886,199
                                                         ------------------       ------------------

            Total Members' capital                              19,843,543               28,886,199
                                                         ------------------       ------------------

                TOTAL                                         $ 20,495,709             $ 29,277,397
                                                          ==================       ==================

</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, 1999 AND 1998
-------------------------------------------------------------------------------

                                            1999                   1998
                                      ------------------     ------------------
<S>                                 <C>                    <C>
REVENUES:

Trading (loss) profit:
    Realized                          $      (1,431,693)     $        (913,823)
    Change in unrealized                     (2,776,920)               345,682
                                      ------------------     ------------------

        Total trading results                (4,208,613)              (568,141)

Interest income (Note 2)                      1,201,484              1,959,142
                                      ------------------     ------------------

        Total revenues                       (3,007,129)             1,391,001
                                      ------------------     ------------------

EXPENSES:

    Brokerage commissions (Note 2)            2,455,447              3,638,923
    Profit Shares (Note 3)                            -                332,560
    Administrative fees (Note 2)                 64,617                 97,879
                                      ------------------     ------------------

        Total expenses                        2,520,064              4,069,362
                                      ------------------     ------------------

NET LOSS                              $      (5,527,193)     $      (2,678,361)
                                      ==================     ==================

</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 MEMBERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
-------------------------------------------------------------------------------------------------------------


                                                                         Non-Voting
                                         Voting Members                   Members                Total
                                       --------------------       ------------------       ------------------
<S>                                <C>                           <C>                       <C>
MEMBERS' CAPITAL,
  DECEMBER 31, 1997                    $        59,766,977        $       1,591,929        $      61,358,906

Withdrawals                                    (28,414,824)              (1,379,522)             (29,794,346)

Net Loss                                        (2,465,954)                (212,407)              (2,678,361)
                                       --------------------       ------------------       ------------------

MEMBERS' CAPITAL,
  DECEMBER 31, 1998                             28,886,199                      -                 28,886,199

Withdrawals                                     (3,515,463)                     -                 (3,515,463)

Net Loss                                        (5,527,193)                     -                 (5,527,193)
                                       --------------------       ------------------       ------------------
MEMBERS' CAPITAL,
  DECEMBER 31, 1999                    $        19,843,543        $             -          $      19,843,543
                                       ====================       ==================       ==================
</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(R)") 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, do not
      participate in the management of the Company, or engage, directly or
      indirectly, in, participate in or control any portion of the business
      activities or affairs of the Company. Management of the Company is vested
      solely in the Voting Interests, which are held by United States limited
      partnerships. The Voting Members control all business activities and
      affairs of the Company by agreement of the majority in interest of such
      Members, subject to the trading authority vested in and delegated to JWH
      and the administrative authority vested in and delegated to MLIP. Each
      Voting Member is a "commodity pool" sponsored and managed by MLIP, share
      in the trading profit (loss) and interest income of the Company in
      proportion to their respective capital accounts, although the Members are
      subject to somewhat different fees.

      Estimates
      ---------

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

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

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

                                      -5-
<PAGE>

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

      The Company's functional currency is the U.S. dollar; however, it
      transacts business in currencies other than the U.S. dollar. Assets and
      liabilities denominated in currencies other than the U.S. dollar are
      translated into U.S. dollars at the rates in effect at the 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.

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

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

      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 each Member is individually responsible for reporting income
      or loss based on such Member's respective share of the Company's income
      and expenses as reported for income tax purposes.

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

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

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

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

      Dissolution
      -----------

      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.

                                      -6-
<PAGE>

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 net gains actually held by Merrill Lynch in
      non-U.S. dollar currencies at a prevailing local rate received by Merrill
      Lynch. Merrill Lynch may derive certain economic benefit, in excess of the
      interest which Merrill Lynch pays to the Company, from possession of such
      assets.

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

      Following the allocation of the Company's trading (loss) profit and
      interest income among the Members' respective capital accounts, MLIP
      calculates the brokerage commissions, Profit Shares, administrative fees
      and other expenses due from the Company to third parties, in respect of
      the Company's trading on behalf of the respective Members (the Company
      being subject to different commissions, fees and expenses in respect of
      its trading as allocable to the various different Members). Such
      commissions, fees, Profit Shares and expenses are specifically allocated
      as of the end of each accounting period (not pro rata based on the
      Members' respective capital accounts) to, and deducted from, the
      appropriate Members' capital accounts and paid out by the Company. The
      Company pays brokerage commissions to MLF at flat monthly rates reflecting
      the fee arrangement between each Member and MLF. During the period from
      January 1, 1998 to May 31, 1998, such rates ranged from .646 of 1% (a
      7.75% annual rate) to .979 of 1% (an 11.75% annual rate) of each Member's
      month-end assets invested in the Company. As of May 31, 1998, Members
      subject to various brokerage commission rates withdrew from the Company,
      and thereafter, the rate 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 4% 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(R) 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 JWH(R)
      to withdraw. JWH(R) 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(R) a quarterly Profit Share equal to 15% of any
      New Trading Profit, as defined, attributable to each Member's capital
      account. Profit Shares are calculated separately in respect of each
      Member's Capital Account. Profit Shares are determined as of the end of
      each calendar quarter and are also paid to JWH(R) upon the withdrawal of
      capital from the Company by a Member for whatever purpose, other than to
      pay expenses.

                                      -7-
<PAGE>

4.    FAIR VALUE AND OFF-BALANCE SHEET RISK

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

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

      The Company trades futures, options on futures and forward contracts on
      interest rates, stock indices, currencies, and metals.

      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, which monitors the trading of the Company in MLIP's capacity as the
      Company's administrator, 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(R), calculating the Net Asset Value of the
      Company and of the Members' 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(R) concerning the possibility of JWH(R) reducing trading leverage or
      market concentrations. However, such interventions are unusual. Except in
      cases in which it appears that JWH(R) has begun to deviate from past
      practice and trading policies or to be trading erratically (which has not
      occurred to date), MLIP's basic risk control procedures consist simply of
      the ongoing process of monitoring JWH(R) with the market risk controls
      being applied by JWH(R).

                                      -8-
<PAGE>

      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 credit
      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 accounts.



                                * * * * * * * * *

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

                            /s/ Michael L. Pungello

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

                                      -9-
<PAGE>

                                                             EXHIBIT 13.01(a)(2)


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


                               Financial Statments for the years ended
                               December 31, 1999 and 1998 and Independent
                               Auditor's Report



[LOGO] Merrill Lynch
<PAGE>

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


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


                                                                            Page
                                                                            ----

INDEPENDENT AUDITORS' REPORT                                                 1

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

  Statements of Financial Condition                                          2

  Statements of Operations                                                   3

  Statements of Changes in Members' Capital                                  4

  Notes to Financial Statements                                            5-9
<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, 1999 and 1998, and the
related statements of operations and of changes in members' capital for the
years ended December 31, 1999 and 1998. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the 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,
1999 and 1998, and the results of its operations and changes in members' capital
for the years ended December 31, 1999 and 1998 in comformity with generally
accepted accounting principles.


DELOITTE & TOUCHE LLP


New York, New York
February 4, 2000




<PAGE>

<TABLE>
<CAPTION>

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


STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1999 and 1998
-----------------------------------------------------------------------------------------------------------


ASSETS                                                                 1999                     1998
                                                                  ---------------        ---------------
<S>                                                               <C>                         <C>
Equity in commodity futures trading accounts:
  Cash and option premiums                                           $ 22,574,430           $ 26,414,436
  Net unrealized profit on open contracts                               1,088,672              1,304,531
Accrued interest (Note 2)                                                 106,687                 96,033
                                                                 ----------------       ----------------

             TOTAL                                                   $ 23,769,789           $ 27,815,000
                                                                  ===============       ================

LIABILITIES AND MEMBERS' CAPITAL

LIABILITIES:

  Brokerage commissions payable (Note 2)                                $ 188,158              $ 220,182
  Profit Shares payable (Note 3)                                           -                     183,086
  Administrative fees payable (Note 2)                                      4,952                  5,794
  Withdrawals payable                                                     544,050                128,824
                                                                  ---------------        ---------------

             Total liabilities                                            737,160                537,886
                                                                  ---------------        ---------------

MEMBERS' CAPITAL:
  Voting Members                                                       23,032,629             27,277,114
                                                                  ---------------        ---------------

             Total Members' capital                                    23,032,629             27,277,114
                                                                  ---------------        ---------------

             TOTAL                                                   $ 23,769,789           $ 27,815,000
                                                                  ===============        ===============

</TABLE>

  See notes to financial statements.

                                      -2-

<PAGE>

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


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

                                                   1999          1998
                                                ----------    ----------
REVENUES:

Trading profit:
  Realized                                      $   936,083   $  1,728,662
  Change in unrealized                             (215,763)       431,034
                                                ------------  ------------

    Total trading results                           720,320      2,159,696

Interest income (Note 2)                          1,274,615      1,433,954
                                                ------------  ------------
    Total revenues                                1,994,935      3,593,650
                                                ------------  ------------

EXPENSES:

  Brokerage commissions (Note 2)                  2,523,710      2,836,503
  Profit Shares (Note 3)                             22,730        197,023
  Administrative fees (Note 2)                       66,413         74,885
                                                ------------  ------------
    Total expenses                                2,612,853      3,108,411
                                                ------------  ------------
NET INCOME (LOSS)                               $  (617,918)  $    485,239
                                                ============  ============

See notes to financial statements.

                                      -3-

<PAGE>

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


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


MEMBERS' CAPITAL,
 DECEMBER 31, 1997                           $ 34,130,278

Withdrawals                                    (7,338,403)

Net income                                        485,239
                                        ------------------

MEMBERS' CAPITAL,
 DECEMBER 31, 1998                           $ 27,277,114

Withdrawals                                    (3,626,567)

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

MEMBERS' CAPITAL,
 DECEMBER 31, 1999                           $ 23,032,629
                                        ==================

 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 ACCOUTING 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 sponsored
   by MLIP. Currently, there is only one Voting Member. 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.

   Estimates
   ---------

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

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

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

                                      -5-


<PAGE>

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

     The Company's functional currency is the U.S. dollar; however, it transacts
     business in currencies other than the U.S. dollar. Assets and liabilities
     denominated in currencies other than the U.S. dollars 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.

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

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

     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 to any Member as of December
     31, 1999.

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

     The Member may withdraw some or all of such Members' 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 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 profit (loss) and
     interest income among the Members' respective capital accounts, 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 each member as of the end
     of each accounting period, and deducted from the appropriate Member's
     capital accounts and paid out by the Company. The Company pays brokerage
     commissions to MLF at flat monthly rates reflecting the fee arrangement
     between the Member and MLF. During the period from January 1, 1998 to May
     31, 1998, the rates ranged from .729 of 1% (an 8.75% annual rate) to .792
     of 1% (a 9.50% annual rate). As of May 31, 1998, the Members subject to a
     .729 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 Capital Account.
     Profit Shares are calculated separately in respect of each Members' Capital
     Account. Profit Shares are also paid to Millburn 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. This
     Statement supercedes SFAS No. 119 ("Disclosure about Derivative Financial
     Instruments and Fair Value of Financial Instruments") and SFAS No. 105
     ("Disclosure of Information about Financial Instruments with Off-Balance
     Sheet Risk and Financial Instruments with Concentrations of Credit Risk")
     whereby disclosure of average aggregate fair values and contract/notional
     values, respectively, of derivative financial instruments is no longer
     required for an entity such as the Company which carries its assets at fair
     value. Such Statement sets forth a much broader definition of a derivative
     instrument. MLIP does not believe that the adoption of the provisions of
     such Statement had a significant effect on the financial statements.

     SFAS No. 133 defines a derivative as a financial instrument or other
     contract that has all three of the following characteristics: (1) one or
     more underlyings and notional amounts or payment provisions; (2)


                                      -7-
<PAGE>

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, which monitors the trading of the Company in MLIP's capacity as the
Company's administrator, 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 the Members'
respective capital accounts as of the close of business on each day 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 (which has
not occurred to date), MLIP's basic risk control procedures consists 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
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, 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 in exchange trading, and counterparties may require margin in the
over-the-counter markets.

The Company attempts to mitigate credit 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 accounts.

                                      -8-
<PAGE>

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

                           /s/ Michael L. Pungello

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




                                      -9-