<PAGE>
 
                                                                EXHIBIT 13.01(a)
 
ML JWH FINANCIAL AND 
METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

Financial Statements for the Period from
October 1, 1996 (Commencement of Operations)
to December 31, 1996 and Independent Auditors' Report
<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 PERIOD FROM
  OCTOBER 1, 1996 (COMMENCEMENT OF OPERATIONS)
  TO DECEMBER 31, 1996:
 
  Statement of Financial Condition                   2
 
  Statement of Income                                3
 
  Statement of Changes in Members' Capital           4
 
  Notes to Financial Statements                   5-11
<PAGE>
 
INDEPENDENT AUDITORS' REPORT
----------------------------



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

We have audited the accompanying statement of financial condition of ML JWH
Financial and Metals Portfolio L.L.C. (a Delaware limited liability company; the
"Company") as of December 31, 1996, and the related statements of income and of
changes in members' capital for the period from October 1, 1996 (commencement of
operations) to December 31, 1996.  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 audit.

We conducted our audit 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 audit provides 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, 1996, and the results of its operations for the period from
October 1, 1996 (commencement of operations) to December 31, 1996 in conformity
with generally accepted accounting principles.

Deloitte & Touche LLP
New York, New York

February 3, 1997
<PAGE>
 
ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1996
--------------------------------------------------------------------------------
ASSETS
------
 
Accrued interest (Note 2)                                           $   306,073
Equity in commodity futures trading accounts:
    Cash and option premiums                                         79,820,720
    Net unrealized gain on open contracts                               698,571
                                                                     ----------
 
                TOTAL                                               $80,825,364
                                                                    ===========
 
LIABILITIES AND MEMBERS' CAPITAL
--------------------------------
 
LIABILITIES:
    Withdrawals payable                                             $16,819,986
    Profit shares payable (Note 3)                                    2,313,537
    Brokerage commissions payable (Note 2)                              697,868
    Administrative fees payable (Note 2)                                 16,819
                                                                     ----------
 
            Total liabilities                                        19,848,210
                                                                     ----------
 
MEMBERS' CAPITAL:
    Voting Members                                                   53,977,573
    Non-voting Members                                                6,999,581
                                                                     ----------
 
            Total Members' capital                                   60,977,154
                                                                     ---------- 
 
                TOTAL                                               $80,825,364
                                                                    ===========
 
 
See notes to financial statements.






                                      -2-
<PAGE>
 
ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

STATEMENT OF INCOME
FOR THE PERIOD FROM OCTOBER 1, 1996
(COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1996
--------------------------------------------------------------------------------

REVENUES:
Trading profit (loss):

    Realized                                                       $17,860,411
    Change in unrealized                                               698,571
                                                                   -----------
 
        Total trading results                                       18,558,982
 
Interest income (Note 2)                                               806,967
                                                                   -----------
 
        Total revenues                                              19,365,949
                                                                   -----------
 
EXPENSES:
    Profit shares (Note 3)                                          2,313,537
    Brokerage commissions (Note 2)                                  2,063,021
    Administrative fees (Note 2)                                       49,703
                                                                   ----------
 
         Total expenses                                             4,426,261
                                                                   ----------
 
NET INCOME                                                        $14,939,688
                                                                 ============
 
 
See notes to financial statements.





                                      -3-
<PAGE>
 
ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)


STATEMENT OF CHANGES IN MEMBERS' CAPITAL
FOR THE PERIOD FROM OCTOBER 1, 1996
(COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1996
--------------------------------------------------------------------------------

                                          Voting      Non-Voting
                                          Members       Members        Total

Initial Contributions                  $ 56,790,791  $ 7,080,836   $ 63,871,627
 
Contributions                             1,212,016        2,017      1,214,033
 
Withdrawals                             (17,295,297)  (1,752,897)   (19,048,194)
 
Net Income                               13,270,063    1,669,625     14,939,688
                                       ------------   -----------  ------------
 
MEMBERS' CAPITAL,
  DECEMBER 31, 1996                    $ 53,977,573  $ 6,999,581   $ 60,977,154
                                       ============  ===========   ============
 
 
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
FOR THE PERIOD FROM OCTOBER 1, 1996
(COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1996
--------------------------------------------------------------------------------

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.  Merrill Lynch Investment Partners Inc. (formerly,
   ML Futures 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. (one or more of Merrill Lynch & Co., Inc. and its
   affiliates being hereinafter referred to as "Merrill Lynch"), has been
   delegated administrative authority over the Company, and Merrill Lynch
   Futures Inc. ("MLF"), also an affiliate of Merrill Lynch, is its commodity
   broker.  The Company has authorized two classes of Membership Interests:
   Non-Voting Membership Capital Accounts and Voting Membership Capital Accounts
   ("Members").  These two classes of Membership Capital Accounts have common
   economic interests in the Company, but the Non-Voting Membership Capital
   Accounts, which are held by non-United States companies, shall not
   participate in any respect in the management of the Company, or engage,
   directly or indirectly, in the participation in or control of all or any
   portion of the business activities or affairs of the Company, such management
   being vested solely in the Voting Membership Capital Accounts, which are held
   by United States limited partnerships.  The Voting Members, acting as Members
   without any "manager," mutually dominate and 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.  The Members of
   the Company, each of which is a "commodity pool" sponsored by MLIP, share in
   the trading profit (loss) and interest income of the Company in proportion to
   their respective capital accounts in it.

   John W. Henry & Company, Inc. (the "Advisor" or "JWH") has been delegated
   trading authority over the assets of the Company.

   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 and
   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 (loss) on open contracts in the Statement of Financial Condition at
   the difference between the original contract amount and the fair value.  The



                                      -5-
<PAGE>
 
   change in net unrealized profit (loss) on open contracts from one period to
   the next is reflected in change in unrealized in the Statement of Income.
   Fair value is based on quoted market prices on the exchange or market on
   which the contract is traded.

   Organization Costs
   ------------------

   MLIP paid all organizational costs relating to the Company without direct
   reimbursement from the Company or any Member.  These organizational costs
   should be indirectly reimbursed to Merrill Lynch as MLF's costs for executing
   the Company's trades should, over time, be reduced by the Members
   consolidating their respective JWH trading accounts in 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 distribution (except upon withdrawals) had been made by the Company to any
   Member as of December 31, 1996.

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

   A 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 of the Company
   --------------------------

   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.  Were the Advisor to cease to manage the
   Company's account, the Company would dissolve.

2. RELATED PARTY TRANSACTIONS

   The Company's U.S. dollar-denominated assets are held at MLF in cash or
   short-term Treasury bills.  The Company receives all interest paid on such
   Treasury bills.  On the cash held at MLF, the Company receives interest from
   Merrill Lynch at rates ranging from 0.50 of 1% per annum below the prevailing
   91-day Treasury bill rate up to the full prevailing 91-day Treasury bill
   rate.  Merrill Lynch may derive certain economic benefits, in excess of the
   interest which Merrill Lynch pays to the Company, from possession of such
   cash.

   Merrill Lynch credits the Company with interest on the Company's non-U.S.
   dollar-denominated available assets based on local short-term rates.  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, 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 




                                      -6-
<PAGE>
 
   commissions, fees and expenses in respect of its trading as allocable to the
   various different Members). Such commissions, fees 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. Such rates currently range
   from .729 of 1% (an 8.75% annual rate) to .979 of 1% (an 11.75% 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 of charges.

   The Company pays MLIP a monthly administrative fee of .021 of 1% (a .25%
   annual rate) of each Member's month-end assets.

   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.

   The Company trades forward contracts through a Foreign Exchange Service Desk
   (the "F/X Desk") established by MLIP that contacts at least two
   counterparties along with Merrill Lynch International Bank ("MLIB") for all
   of the Company's currency transactions. All counterparties other than MLIB
   are unaffiliated with any Merrill Lynch entity. The F/X Desk charges a
   service fee equal (at current exchange rates) to approximately $5.00 to
   $12.50 on each purchase or sale of a futures-contract equivalent face amount
   of a foreign currency. No service fee is charged on trades awarded to MLIB
   (which receives a "bid-ask" spread on such trades). MLIB is awarded trades
   only if its price (which includes no service fee) is equal to or better than
   the best price (including the service charge) offered by any of the other
   counterparties contacted.

   The F/X Desk trades on the basis of credit lines provided by a Merrill Lynch
   entity.  The Company is not required to margin or otherwise guarantee its F/X
   Desk trading.

   Certain of the Company's currency trades are executed in the form of
   "exchange of futures for physical" ("EFP") transactions involving MLIB and
   MLF.  In these transactions, a spot or forward (collectively referred to as
   "cash") currency position is acquired and exchanged for an equivalent futures
   position on the Chicago Mercantile Exchange's International Monetary Market
   ("IMM").  In its EFP trading with Merrill Lynch, the Company acquires cash
   currency positions through the F/X Desk in the same manner and on the same
   terms as in the case of the Company's other F/X Desk trading.  When the
   Company exchanges these positions for futures, there is a "differential"
   between the prices of these two positions.  This "differential" reflects, in
   part, the different settlement dates of the cash and the futures contracts as
   well as prevailing interest rates, but also includes a pricing spread in
   favor of MLIB or another Merrill Lynch entity.

   The Company's F/X Desk service fee and EFP differential costs have, to date
   totaled no more than .25 of 1% per annum of the Company's average month-end
   Net Assets.

3. ADVISORY AGREEMENT

   The Company and the Advisor have entered into an Advisory Agreement.  This
   Advisory Agreement terminates one year after it is entered into, subject to
   certain renewal rights exercisable by the Company.  The Advisor determines
   the commodity futures and forward contact trades to be made on behalf of the
   Company, subject to certain Company trading policies and to certain rights
   reserved by MLIP.




                                      -7-
<PAGE>
 
   The Company pays to JWH a quarterly Profit Share equal to 15% of any New
   Trading Profit, as defined, attributable to each Member's Capital Account in
   the Company.  Profit Shares, which are calculated separately in respect of
   each Member's Capital Account, are determined as of the end of each calendar
   quarter and shall also be paid to JWH 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

   The Company trades futures, options on futures and forward contracts on
   interest rates, stock indices, commodities, currencies, and metals.  The
   Company's trading results by reporting category were as follows:

                                    1996
                               Total Trading
                                  Results
                            ------------------
   Interest Rates               $10,439,465
   Stock Indices                   (371,033)
   Currencies                     5,889,115
   Metals                         2,601,435
                             -----------------
 
                                $18,558,982
                              =================


   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 market values of the underlying financial
   instruments or commodities underlying such derivative instruments frequently
   result in changes in the Company's unrealized profit (loss) on such
   derivative instruments as reflected in the  Statement 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 the
   derivative instruments are traded.

   MLIP, which monitors the trading of the Company in MLIP's capacity as the
   General Partner of the Voting Members and Sponsor of the Non-Voting Members,
   has procedures in place intended to control market risk, although there can
   be no assurance that they will, in fact, succeed in doing so.  The procedures
   focus primarily on monitoring the trading of the Advisor, 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 will not itself intervene in the markets to
   hedge or diversify the Company's market exposure, MLIP may consult with the
   Advisor concerning the possibility of the Advisor reducing trading leverage
   or market concentrations.  However, such interventions are unusual.  Except
   in cases in which it appears that JWH 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 monitoring JWH with the
   market risk controls being applied by JWH.

   Fair Value

   The derivative instruments used in the Company's trading activities are
   marked to market daily with the resulting unrealized profit (loss) recorded
   in the Statement of Financial Condition and the related profit (loss)
   reflected in trading revenues in the Statement of Income.



                                      -8-
<PAGE>
 
   The contract/notional values of open contracts as of December 31, 1996 were
   as follows:


 
                                  December 31, 1996
                           --------------------------------------
                             Commitment to        Commitment to
                           Purchase (Futures,    Sell (Futures,

                           Options & Forwards)  Options & Forwards)
                           ------------------   ------------------ 

Interest Rates                  $171,304,600      $ 13,669,055
Currencies                       119,088,247        96,734,685
Metals                                     -        33,126,830
                            -------------------  -------------------
 
                                $290,392,847      $143,530,570
                            ===================   ===================


   Substantially all of the Company's derivative instruments outstanding as of
   December 31, 1996, expire within one year.

   The contract/notional value of the Company's exchange-traded and non-exchange
   traded open derivative instrument positions as of December 31, 1996 were as
   follows:
 
                                Commitment to      Commitment to
                              Purchase (Futures,   Sell (Futures,
                             Options & Forwards)  Options & Forwards)
                             ------------------   ------------------ 

    Exchange Traded              $171,304,600       $ 46,795,885
    Non- Exchange Traded          119,088,247         96,734,685
                             -------------------   -------------------
 
                                 $290,392,847       $143,530,570
                             ===================   ===================


   The average fair value of the Company's derivative instruments positions
   which were open as of the end of each calendar month during the period
   October 1, 1996 through December 31, 1996 were as follows:
 
                                 Commitment to      Commitment to
                               Purchase (Futures,   Sell (Futures,
                             Options & Forwards)  Options & Forwards)
                             ------------------   ------------------ 

   Interest Rates                $591,299,377         $127,295,586
   Currencies                     297,652,663          275,733,802
   Metals                          14,845,327           75,877,301
                              -----------------    -----------------
 
                                 $903,797,367         $478,906,689
                              =================     =================


   A portion of the amounts indicated as off-balance sheet risk reflects
   offsetting commitments to purchase and sell the same derivative instrument on
   the same date in the future.  These commitments are economically offsetting
   but are not, as a technical matter, offset in the forward market until the
   settlement date.




                                      -9-
<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 fair value amounts in the above tables represent the extent of the
   Company's market exposure in the particular class of derivative instrument
   listed, but not the credit risk associated with counterparty nonperformance.
   The credit risk associated with these instruments from counterparty
   nonperformance is the net unrealized profit, if any, included on the
   Statement of Financial Condition. The Company also has credit risk because
   the sole counterparty or broker with respect to most of the Company's assets
   is MLF.

   As of December 31, 1996 $42,525,678 of the Company's assets were held in
   segregated accounts at MLF in accordance with Commodity Futures Trading
   Commission regulations.

             The gross unrealized profit and net unrealized profit on the
   Company's open derivative instrument positions as of December 31, 1996 were
   as follows:
 
                                Gross Unrealized            Net Unrealized
                                    Profit                     Profit
                                -----------------         -------------------
 Exchange Traded                        $  873,657                $ 39,049
 Non- Exchange Traded                    1,962,810                 659,522
                                 -----------------        -------------------
 
                                        $2,836,467                $698,571
                                 =================        ===================


             The Company controls credit risk by dealing almost exclusively with
   Merrill Lynch entities as brokers and counterparties.

   The Company, through its normal course of business, enters into various
   contracts with MLF acting as its commodity broker.  Pursuant to the brokerage
   arrangement with MLF, 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.




                                     -10-
<PAGE>
 
                 To the best of the knowledge and belief of the
                 undersigned, the information contained in this
                        report is accurate and complete.



                                James M. Bernard
                            Chief Financial Officer
                     Merrill Lynch Investment Partners Inc.
                           Commodity Pool Operator of
                  ML JWH Financial and Metals Portfolio L.L.C.