<PAGE>
                                                           2000
--------------------------------------------------------------------------------
World Monitor Trust--                                      Annual
Series B                                                   Report
<PAGE>
                         WORLD MONITOR TRUST--SERIES B

                                                                      March 2001
Letter to Limited Owners

                                       1
<PAGE>
PricewaterhouseCoopers (LOGO)

                                         PricewaterhouseCoopers LLP
                                         1177 Avenue of the Americas
                                         New York, NY 10036
                                         Telephone (212) 596 8000
                                         Facsimile (212) 596 8910


                       Report of Independent Accountants

To the Managing Owner and
Limited Owners of
World Monitor Trust--Series B

In our opinion, the accompanying statements of financial condition and the
related statements of operations and changes in trust capital present fairly, in
all material respects, the financial position of World Monitor Trust--Series B
at December 31, 2000 and 1999, and the results of its operations for the years
ended December 31, 2000 and 1999 and for the period from June 10, 1998
(commencement of operations) to December 31, 1998 in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Managing Owner; our responsibility is
to express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which 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, assessing the accounting principles used and significant estimates
made by the Managing Owner, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

/s/ PricewaterhouseCoopers LLP

January 26, 2001

                                       2
<PAGE>
                         WORLD MONITOR TRUST--SERIES B
                          (a Delaware Business Trust)
                       STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                                                December 31,
                                                                        ----------------------------
                                                                            2000            1999
<S>                                                                     <C>             <C>
----------------------------------------------------------------------------------------------------
ASSETS
Cash                                                                    $15,726,465     $25,912,785
Net unrealized gain on open futures contracts                             2,066,876         373,042
Subscriptions receivable                                                      3,042              --
                                                                        ------------    ------------
Total assets                                                            $17,796,383     $26,285,827
                                                                        ------------    ------------
                                                                        ------------    ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Commissions payable                                                     $   129,068     $   186,575
Redemptions payable                                                          34,170          72,082
Management fees payable                                                      34,053          49,811
Incentive fees payable                                                           --             658
                                                                        ------------    ------------
Total liabilities                                                           197,291         309,126
                                                                        ------------    ------------
Commitments

Trust capital
Limited interests (142,903.342 and 210,979.665 interests outstanding)    17,416,280      25,660,475
General interests (1,500 and 2,600 interests outstanding)                   182,812         316,226
                                                                        ------------    ------------
Total trust capital                                                      17,599,092      25,976,701
                                                                        ------------    ------------
Total liabilities and trust capital                                     $17,796,383     $26,285,827
                                                                        ------------    ------------
                                                                        ------------    ------------

Net asset value per limited and general interest ('Interests')          $    121.87     $    121.63
                                                                        ------------    ------------
                                                                        ------------    ------------
----------------------------------------------------------------------------------------------------
                  The accompanying notes are an integral part of these statements.
</TABLE>
                                       3
<PAGE>
                         WORLD MONITOR TRUST--SERIES B
                          (a Delaware Business Trust)
                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                         For the period
                                                                                              from
                                                                                          June 10, 1998
                                                     Year ended December 31,            (commencement of
                                              --------------------------------------     operations) to
                                                     2000                 1999          December 31, 1998
<S>                                           <C>                    <C>                <C>
---------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on futures
  contracts                                       $(1,952,020)         $ 2,457,582         $ 1,155,799
Change in net unrealized gain on open
  futures contracts                                 1,693,834               54,204             318,838
Interest income                                     1,276,882            1,002,609             257,456
                                              -------------------    ---------------    -----------------
                                                    1,018,696            3,514,395           1,732,093
                                              -------------------    ---------------    -----------------
EXPENSES
Commissions                                         1,566,113            1,540,819             374,878
Management fees                                       403,538              398,506              96,966
Incentive fees                                             --              458,510             200,596
                                              -------------------    ---------------    -----------------
                                                    1,969,651            2,397,835             672,440
                                              -------------------    ---------------    -----------------
Net income (loss)                                 $  (950,955)         $ 1,116,560         $ 1,059,653
                                              -------------------    ---------------    -----------------
                                              -------------------    ---------------    -----------------
ALLOCATION OF NET INCOME (LOSS)
Limited interests                                 $  (933,778)         $ 1,102,475         $ 1,044,906
                                              -------------------    ---------------    -----------------
                                              -------------------    ---------------    -----------------
General interests                                 $   (17,177)         $    14,085         $    14,747
                                              -------------------    ---------------    -----------------
                                              -------------------    ---------------    -----------------
NET INCOME (LOSS) PER WEIGHTED AVERAGE
  LIMITED AND GENERAL INTEREST
Net income (loss) per weighted average
  limited and general interest                    $     (5.22)         $      6.91         $     13.06
                                              -------------------    ---------------    -----------------
                                              -------------------    ---------------    -----------------
Weighted average number of limited and
  general interests outstanding                       182,101              161,647              81,115
                                              -------------------    ---------------    -----------------
                                              -------------------    ---------------    -----------------
---------------------------------------------------------------------------------------------------------
</TABLE>

                     STATEMENTS OF CHANGES IN TRUST CAPITAL
<TABLE>
<CAPTION>
                                                              LIMITED        GENERAL
                                             INTERESTS       INTERESTS      INTERESTS        TOTAL
<S>                                         <C>             <C>             <C>           <C>
-----------------------------------------------------------------------------------------------------
Trust capital--December 31, 1997                 10.000     $        --     $  1,000      $     1,000
Contributions                               104,078.948      10,450,494      135,432       10,585,926
Net income                                                    1,044,906       14,747        1,059,653
Redemptions                                  (2,287.057)       (246,322)          --         (246,322)
                                            -----------     -----------     ---------     -----------
Trust capital--December 31, 1998            101,801.891      11,249,078      151,179       11,400,257
Contributions                               133,826.024      16,017,261      150,962       16,168,223
Net income                                                    1,102,475       14,085        1,116,560
Redemptions                                 (22,048.250)     (2,708,339)          --       (2,708,339)
                                            -----------     -----------     ---------     -----------
Trust capital--December 31, 1999            213,579.665      25,660,475      316,226       25,976,701
Contributions                                23,078.586       2,527,703           --        2,527,703
Net loss                                                       (933,778)     (17,177 )       (950,955)
Redemptions                                 (92,254.909)     (9,838,120)    (116,237 )     (9,954,357)
                                            -----------     -----------     ---------     -----------
Trust capital--December 31, 2000            144,403.342     $17,416,280     $182,812      $17,599,092
                                            -----------     -----------     ---------     -----------
                                            -----------     -----------     ---------     -----------
-----------------------------------------------------------------------------------------------------
                  The accompanying notes are an integral part of these statements.
</TABLE>

                                       4
<PAGE>
                         WORLD MONITOR TRUST--SERIES B
                          (a Delaware Business Trust)
                         NOTES TO FINANCIAL STATEMENTS

A. General

The Trust, Trustee, Managing Owner and Affiliates

   World Monitor Trust (the 'Trust') is a business trust organized under the
laws of Delaware on December 17, 1997. The Trust commenced trading operations on
June 10, 1998 and will terminate on December 31, 2047 unless terminated sooner
as provided in the Second Amended and Restated Declaration of Trust and Trust
Agreement. The Trust consists of three separate and distinct series ('Series'):
Series A, B and C. The assets of each Series are segregated from those of the
other Series, separately valued and independently managed. Each Series was
formed to engage in the speculative trading of a diversified portfolio of
futures, forward and options contracts, and may, from time to time, engage in
cash and spot transactions. The trustee of the Trust is Wilmington Trust
Company. The managing owner is Prudential Securities Futures Management Inc.
(the 'Managing Owner'), a wholly owned subsidiary of Prudential Securities
Incorporated ('PSI') which, in turn, is a wholly owned subsidiary of Prudential
Securities Group Inc. PSI is the selling agent for the Trust as well as its
commodity broker ('Commodity Broker').

The Offering

   Beneficial interests in each Series ('Interests') are being offered once each
week until each Series' subscription maximum has been issued either through sale
or exchange. On June 10, 1998, a sufficient number of subscriptions for each
Series had been received and accepted by the Managing Owner to permit each
Series to commence trading. Series B completed its initial offering with gross
proceeds of $5,709,093 from the sale of 56,330.929 limited interests and 760
general interests. General interests are sold exclusively to the Managing Owner.

   Series A was offered until it achieved its subscription maximum of
$34,000,000 during November 1999. Interests in Series B and Series C will
continue to be offered on a weekly basis at the then current net asset value per
Interest until the subscription maximum of $33,000,000 for each Series is sold
('Continuous Offering Period'). Series B and C are offered to investors who meet
certain established suitability standards, with a minimum initial subscription
of $5,000 ($2,000 for an individual retirement account) per subscriber, although
the minimum purchase for any single Series is $1,000. Additional purchases may
be made in $100 increments.

   The Managing Owner is required to maintain at least a 1% interest in the
capital, profits and losses of each Series so long as it is acting as the
Managing Owner, and it will make such contributions (and in return will receive
general interests) as are necessary to meet this requirement.

The Trading Advisor

   Each Series has its own independent commodity trading advisor that makes that
Series' trading decisions. The Managing Owner, on behalf of the Trust, entered
into an advisory agreement with Eclipse Capital Management, Inc. (the 'Trading
Advisor') to make the trading decisions for Series B. The advisory agreement may
be terminated for various reasons, including at the discretion of the Managing
Owner. The Managing Owner has allocated 100% of the proceeds from the initial
and continuous offering of Series B to the Trading Advisor and it is currently
contemplated that the Trading Advisor will continue to be allocated 100% of
additional capital raised for Series B during the Continuous Offering Period.

Exchanges, Redemptions and Termination

   Interests owned in one Series may be exchanged, without any charge, for
Interests of one or more other Series on a weekly basis for as long as Interests
in those Series are being offered to the public. Exchanges are made at the
applicable Series' then current net asset value per Interest as of the close of
business on the Friday immediately preceding the week in which the exchange
request is effected. The exchange of Interests is treated as a redemption of
Interests in one Series (with the related tax consequences) and the simultaneous
purchase of Interests in the Series exchanged into.

   Redemptions are permitted on a weekly basis. Interests redeemed on or before
the end of the first and second successive six-month periods after their
effective dates of purchase are subject to a redemption fee

                                       5
<PAGE>
of 4% and 3%, respectively, of the net asset value at which they are redeemed.
Redemption fees are paid to the Managing Owner.

   In the event that the estimated net asset value per Interest of a Series at
the end of any business day, after adjustments for distributions, declines by
50% or more since the commencement of trading activities or the first day of a
fiscal year, the Series will terminate.

B. Summary of Significant Accounting Policies

Basis of accounting

   The financial statements of Series B are prepared in accordance with
accounting principles generally accepted in the United States of America.

   Commodity futures and forward transactions are reflected in the accompanying
statements of financial condition on trade date. The difference between the
original contract amount and market value is reflected as net unrealized gain or
loss. The market value of each contract is based upon the closing quotation on
the exchange, clearing firm or bank on, or through, which the contract is
traded.

   The weighted average number of limited and general interests outstanding was
computed for purposes of disclosing net income (loss) per weighted average
limited and general interest. The weighted average limited and general interests
are equal to the number of Interests outstanding at period end, adjusted
proportionately for Interests subscribed and redeemed based on their respective
time outstanding during such period.

   Series B has elected not to provide a Statement of Cash Flows as permitted by
Statement of Financial Accounting Standards No. 102, 'Statement of Cash
Flows--Exemption of Certain Enterprises and Classification of Cash Flows from
Certain Securities Acquired for Resale.'

Income taxes

   Series B is treated as a partnership for Federal income tax purposes. As
such, Series B is not required to provide for, or pay, any Federal or state
income taxes. Income tax attributes that arise from its operations are passed
directly to the individual Interest holders including the Managing Owner. Series
B may be subject to other state and local taxes in jurisdictions in which it
operates.

Profit and loss allocations and distributions

   Series B allocates profits and losses for both financial and tax reporting
purposes to its Interest holders weekly on a pro rata basis based on each
owner's Interests outstanding during the week. Distributions (other than
redemptions of Interests) may be made at the sole discretion of the Managing
Owner on a pro rata basis in accordance with the respective capital balances of
the Interest holders; however, the Managing Owner does not presently intend to
make any distributions.

New Accounting Guidance

   In June 2000, the Financial Accounting Standards Board ('FASB') issued
Statement No. 138, Accounting for certain Derivative Instruments and Certain
Hedging Activities--an amendment of FASB Statement No. 133 ('SFAS 138'), which
became effective for Series B on July 1, 2000. SFAS 138 amends the accounting
and reporting standards of FASB Statement No. 133 for certain derivative
instruments and certain hedging activities. SFAS 138 has not had a material
effect on the carrying value of assets and liabilities within the financial
statements.

C. Fees

Organizational, offering, general and administrative costs

   PSI or its affiliates paid the costs of organizing Series B and continue to
pay the costs of offering its Interests as well as administrative costs incurred
by the Managing Owner or its affiliates for services they perform for Series B.
These costs include, but are not limited to, those discussed in Note D below.
Routine legal, audit, postage and other routine third party administrative costs
also are paid by PSI or its affiliates.

Management and incentive fees

   Series B pays its Trading Advisor a management fee at an annual rate of 2% of
Series B's net asset value allocated to its management. The management fee is
determined weekly and the sum of such weekly

                                       6

<PAGE>
amounts is paid monthly. Series B also pays its Trading Advisor a quarterly
incentive fee equal to 20% of such Trading Advisor's 'New High Net Trading
Profits' (as defined in the advisory agreement). The incentive fee also accrues
weekly.

Commissions

   The Managing Owner and the Trust entered into a brokerage agreement with PSI
to act as Commodity Broker for each Series whereby Series B pays a fixed fee for
brokerage services rendered at an annual rate of 7.75% of Series B's net asset
value. The fee is determined weekly and the sum of such weekly amounts is paid
monthly. From this fee, PSI pays execution costs (including floor brokerage
expenses, give-up charges and NFA, clearing and exchange fees), as well as
compensation to employees who sell Interests.

D. Related Parties

   The Managing Owner or its affiliates perform services for Series B which
include but are not limited to: brokerage services; accounting and financial
management; registrar, transfer and assignment functions; investor
communications, printing and other administrative services. As further described
in Note C, except for costs related to brokerage services, PSI or its affiliates
pay the costs of these services in addition to costs of offering Series B's
Interests as well as its routine operational, administrative, legal and auditing
costs.

   The costs charged to Series B for brokerage services for the years ended
December 31, 2000 and 1999 and for the period from June 10, 1998 (commencement
of operations) to December 31, 1998 were $1,566,113, $1,540,819 and $374,878,
respectively.

   All of the proceeds of the offering of Series B are received in the name of
Series B and are deposited in trading or cash accounts at PSI. Series B's assets
are maintained either with PSI or, for margin purposes, with the various
exchanges on which Series B is permitted to trade. PSI credits Series B monthly
with 100% of the interest it earns on the average net assets in Series B's
accounts.

   Series B, acting through its Trading Advisor, may execute over-the-counter,
spot, forward and/or option foreign exchange transactions with PSI. PSI then
engages in back-to-back trading with an affiliate, Prudential-Bache Global
Markets Inc. ('PBGM'). PBGM attempts to earn a profit on such transactions. PBGM
keeps its prices on foreign currency competitive with other interbank currency
trading desks. All over-the-counter currency transactions are conducted between
PSI and Series B pursuant to a line of credit. PSI may require that collateral
be posted against the marked-to-market positions of Series B.

   As of December 31, 2000, a non-U.S. affiliate of the Managing Owner owns
148.095 limited interests of Series B.

E. Income Taxes

   There have been no differences between the tax basis and book basis of
Interest holders' capital since inception of the Trust.

F. Derivative Instruments and Associated Risks

   Series B is exposed to various types of risk associated with the derivative
instruments and related markets in which it invests. These risks include, but
are not limited to, risk of loss from fluctuations in the value of derivative
instruments held (market risk) and the inability of counterparties to perform
under the terms of Series B's investment activities (credit risk).

Market risk

   Trading in futures contracts involves entering into contractual commitments
to purchase or sell a particular commodity at a specified date and price. The
gross or face amount of the contracts, which is typically many times that of
Series B's net assets being traded, significantly exceeds Series B's future cash
requirements since Series B intends to close out its open positions prior to
settlement. As a result, Series B is generally subject only to the risk of loss
arising from the change in the value of the contracts. As such, Series B
considers the 'fair value' of its derivative instruments to be net unrealized
gain or loss on the contracts. The market risk associated with Series B's
commitments to purchase commodities is limited to the gross or face amount of
the contracts held. However, when Series B enters into a contractual commitment
to sell commodities, it must make delivery of the underlying commodity at the
contract price and then

                                       7
<PAGE>
repurchase the contract at prevailing market prices. Since the repurchase price
to which a commodity can rise is unlimited, entering into commitments to sell
commodities exposes Series B to unlimited risk.

   Market risk is influenced by a wide variety of factors including government
programs and policies, political and economic events, the level and volatility
of interest rates, foreign currency exchange rates, the diversification effects
among the derivative instruments Series B holds and the liquidity and inherent
volatility of the markets in which Series B trades.

Credit risk

   When entering into futures contracts, Series B is exposed to credit risk that
the counterparty to the contract will not meet its obligations. The counterparty
for futures contracts traded in the United States and on most foreign futures
exchanges is the clearinghouse associated with such exchanges. In general,
clearinghouses are backed by their corporate members who are required to share
any financial burden resulting from the nonperformance by one of their members
and, as such, should significantly reduce this credit risk. In cases where the
clearinghouse is not backed by the clearing members (i.e., some foreign
exchanges), it is normally backed by a consortium of banks or other financial
institutions. The amount at risk associated with counterparty nonperformance of
all of Series B's contracts is the net unrealized gain included in the
statements of financial condition. There can be no assurance that any
counterparty, clearing member or clearinghouse will meet its obligations to
Series B.

   The Managing Owner attempts to minimize both credit and market risks by
requiring Series B and its Trading Advisor to abide by various trading
limitations and policies. The Managing Owner monitors compliance with these
trading limitations and policies which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties; limiting the
amount of margin or premium required for any one commodity or all commodities
combined; and generally limiting transactions to contracts which are traded in
sufficient volume to permit the taking and liquidating of positions.
Additionally, pursuant to the Advisory Agreement among Series B, the Managing
Owner and the Trading Advisor, Series B shall automatically terminate the
Trading Advisor if the net asset value allocated to the Trading Advisor declines
by 33 1/3% from the value at the beginning of any year or since the commencement
of trading activities. Furthermore, the Second Amended and Restated Declaration
of Trust and Trust Agreement provides that Series B will liquidate its
positions, and eventually dissolve, if Series B experiences a decline in the net
asset value of 50% from the value at the beginning of any year or since the
commencement of trading activities. In each case, the decline in net asset value
is after giving effect for distributions, contributions and redemptions. The
Managing Owner may impose additional restrictions (through modifications of
trading limitations and policies) upon the trading activities of the Trading
Advisor as it, in good faith, deems to be in the best interests of Series B.

   PSI, when acting as the futures commission merchant in accepting orders for
the purchase or sale of domestic futures contracts, is required by Commodity
Futures Trading Commission ('CFTC') regulations to separately account for and
segregate as belonging to Series B all assets of Series B relating to domestic
futures trading and is not to commingle such assets with other assets of PSI. At
December 31, 2000, such segregated assets totalled $14,513,646. Part 30.7 of the
CFTC regulations also requires PSI to secure assets of Series B related to
foreign futures trading which totalled $3,279,695 at December 31, 2000.

   As of December 31, 2000, all open futures contracts mature within three
months.

                                       8
<PAGE>
      The following table presents the fair value of futures contracts at
December 31, 2000 and 1999.

<TABLE>
<CAPTION>
                                                               2000                           1999
                                                   ----------------------------     ------------------------
<S>                                                <C>              <C>             <C>          <C>
                                                      Assets        Liabilities      Assets      Liabilities
                                                   ------------     -----------     --------     -----------
  Domestic exchanges
     Stock indices                                  $       --       $       --     $     --      $   20,100
     Interest rates                                    723,113               --      126,538              --
     Currencies                                        821,048               --       35,254         130,915
     Commodities                                        46,950           16,720       12,320          23,740
  Foreign exchanges
     Stock indices                                      55,607               --       17,878              --
     Interest rates                                    523,732               --      110,580           9,267
     Commodities                                           556           87,410      360,789         106,295
                                                   ------------     -----------     --------     -----------
                                                    $2,171,006       $  104,130     $663,359      $  290,317
                                                   ------------     -----------     --------     -----------
                                                   ------------     -----------     --------     -----------
</TABLE>
                                       9
<PAGE>
--------------------------------------------------------------------------------

   I hereby affirm that, to the best of my knowledge and belief, the information
contained herein relating to World Monitor Trust--Series B is accurate and
complete.

     PRUDENTIAL SECURITIES FUTURES
     MANAGEMENT INC.
     (Managing Owner)

by: Barbara J. Brooks
     Chief Financial Officer
--------------------------------------------------------------------------------

                                       10
<PAGE>
                         WORLD MONITOR TRUST--SERIES B
                          (a Delaware Business Trust)
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

   Series B commenced operations on June 10, 1998 with gross proceeds of
$5,709,093 allocated to commodities trading. Additional contributions raised
through the continuous offering for the period from June 10, 1998 (commencement
of operations) through December 31, 2000 resulted in additional gross proceeds
to Series B of $23,573,759. Additional Interests of Series B will continue to be
offered on a weekly basis at the net asset value per Interest until the
Subscription Maximum of $33,000,000 is sold.

   Interests in Series B may be redeemed on a weekly basis, but are subject to a
redemption fee if transacted within one year of the effective date of purchase.
Redemptions of limited interests and general interests for the year ended
December 31, 2000 were $9,838,120 and $116,237, respectively, and for the period
from June 10, 1998 (commencement of operations) through December 31, 2000 were
$12,792,781 and $116,237, respectively. Additionally, Interests owned in one
Series may be exchanged, without charge, for Interests of one or more other
Series on a weekly basis for as long as Interests in those Series are being
offered to the public. Series A is no longer being offered as it achieved its
subscription maximum during November 1999. Future contributions, redemptions and
exchanges will impact the amount of funds available for investment in commodity
contracts in subsequent periods.

   At December 31, 2000, 100% of Series B's net assets were allocated to
commodities trading. A significant portion of the net assets was held in cash
which is used as margin for Series B's trading in commodities. Inasmuch as the
sole business of Series B is to trade in commodities, Series B continues to own
such liquid assets to be used as margin. PSI credits Series B monthly with 100%
of the interest it earns on the average net assets in Series B's accounts.

   The commodities contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
prices during a single day by regulations referred to as 'daily limits.' During
a single day, no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
neither be taken nor liquidated unless traders are willing to effect trades at
or within the limit. Commodity futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading. Such market
conditions could prevent Series B from promptly liquidating its commodity
futures positions.

   Since Series B's business is to trade futures contracts, its capital is at
risk due to changes in the value of these contracts (market risk) or the
inability of counterparties to perform under the terms of the contracts (credit
risk). Series B's exposure to market risk is influenced by a number of factors
including the volatility of interest rates and foreign currency exchange rates,
the liquidity of the markets in which the contracts are traded and the
relationships among the contracts held. The inherent uncertainty of Series B's
speculative trading as well as the development of drastic market occurrences
could result in monthly losses considerably beyond Series B's experience to date
and could ultimately lead to a loss of all or substantially all of investors'
capital. The Managing Owner attempts to minimize these risks by requiring Series
B and its Trading Advisor to abide by various trading limitations and policies,
which include limiting margin amounts, trading only in liquid markets and
permitting the use of stop loss provisions. See Note F to the financial
statements for a further discussion on the credit and market risks associated
with Series B's futures contracts.

   Series B does not have, nor does it expect to have, any capital assets.

Results of Operations

   The net asset value per Interest as of December 31, 2000 was $121.87, an
increase of .20% from the December 31, 1999 net asset value per Interest of
$121.63 which was an increase of 8.62% from the December 31, 1998 net asset
value per Interest of $111.98. The MAR (Managed Account Reports)

                                       11

<PAGE>
Fund/Pool Index, which tracks the performance of approximately 300 futures
funds, returned 9.41% and 1.48% in 2000 and 1999, respectively. Past performance
is not necessarily indicative of future results.

   Series B had gross trading gains/(losses) of $(258,000), $2,512,000 and
$1,475,000 for the years ended December 31, 2000 and 1999 and for the period
from June 10, 1998 (commencement of operations) to December 31, 1998,
respectively. Due to the nature of Series B's trading activities, a period to
period comparison of its trading results is not meaningful. However, a detailed
discussion of Series B's current year trading results is presented below.

   Despite overall trading losses during 2000, Series B's net asset value per
Interest rose during 2000 due to the timing of its operating results and
redemptions. As a result, the value of a limited owner's investment whose
Interests remained constant during 2000 slightly increased.

   Series B's relatively flat performance in 2000 was attributed to losses from
positions in the currency, metal, stock indices and interest rate sectors offset
by gains recognized in the energy sector.

   The euro began 2000 lower versus the U.S. dollar, Japanese yen and British
pound before rallying slightly in June as a result of solid European economic
data and sentiment that the currency was undervalued. Short euro positions
incurred losses. Despite a brief rally after intervention by the European
Central Bank and other G-7 central banks to boost the failing euro in September,
the euro settled back down more than $0.02 below its intervention peaks. The
euro reversed its downtrend during the fourth quarter as it rose against the
U.S. dollar and Japanese yen resulting in losses for short positions. The
Japanese yen rallied sharply, gaining on the U.S. dollar and most other
currencies in the final months of Japan's fiscal year (which ended March 31st).
This was attributed to positive sentiment regarding Japan's economy. In May, the
yen rose slightly against the U.S. dollar supported by expectations of a
possible change in the Bank of Japan's (BOJ) zero-interest rate policy and
continued to rise when the BOJ increased short-term interest rates in August
resulting in gains for long positions. Political and economic uncertainty in
Japan during the fourth quarter caused the yen to fall against the U.S. dollar
and short Japanese yen positions resulted in gains. The Swiss franc spent most
of the first three quarters drifting lower against the U.S. dollar, tracking the
euro's trend and incurring losses for long positions. The Swiss franc and other
foreign currencies rose against the U.S. dollar in the fourth quarter due to a
weakening U.S. economy incurring losses in short positions.

   Short metal positions incurred losses for Series B throughout most of the
year as strong demand and fears of inflation drove prices higher. In addition,
the high cost of energy, which is used in the production of base metals, caused
a decrease in metal supply driving prices higher and incurring losses for short
positions.

   Extreme volatility in world financial markets during the first half of 2000
resulted in losses for positions in stock indices. During the second half,
equity markets continued to experience volatility, but markets trended downward
as global economies began showing signs of slowing down. Most major indices
ended the year lower incurring losses for long positions.

   Global bond markets began 2000 on a strong note. The U.S. Federal Reserve,
European Central Bank, Bank of England, Reserve Bank of Australia, and Bank of
Canada increased interest rates in early February. These rate increases shared
motivation of strong economic growth and concerns about inflation. Despite rate
hikes and news of robust worldwide economic growth, global bond markets
continued to rally partially due to investors seeking refuge from volatile
equity markets. Short U.S. and euro bond positions resulted in losses in the
first half of the year. Negative equity performance throughout the third and
fourth quarters and mounting fears of a global economic slowdown contributed to
a bond market rally towards year end as investors continued their flight to
quality from the stock market. This year end rally led to gains earned from long
positions during the fourth quarter which were not sufficient to offset losses
incurred throughout the rest of the year.

   Energy prices climbed throughout January and February and into the first week
of March. Prices of crude oil futures rose above $33 a barrel, the highest level
for a front-month (the most liquid) contract since the Gulf War in 1991. The
energy sector reached a high early in March just prior to OPEC's agreement to
increase production sufficiently to stabilize prices. Political pressure by the
United States, along with a desire among OPEC members to maintain crude oil
prices in the range of $22-$28 per barrel, prompted the cartel to announce a
production increase and crude oil prices reversed downward. Increased demand and
low supplies caused oil prices to surge once again during the second quarter
resulting in gains for long energy positions. Energy markets ended a year long
uptrend with natural gas surging to an all time high in

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December as low supplies were strained by unusually cold temperatures in the
U.S. Long positions in natural gas resulted in gains.

   Fluctuations in overall average net asset levels have led to corresponding
fluctuations in commissions and management fees incurred, and interest earned by
Series B, which are largely based on the level of net assets. Series B's average
net asset levels were slightly higher during the year ended December 31, 2000
versus the prior year, primarily from additional contributions and favorable
trading performance in 1999 offset, in part, by redemptions and unfavorable
trading performance during the first three quarters of 2000. Series B's average
net asset levels were significantly higher during the year ended December 31,
1999 versus the period from June 10, 1998 (commencement of operations) to
December 31, 1998, primarily from additional contributions as well as
approximately 7 months of operations during 1998 versus a full year in 1999.

   Interest income is earned on the average net assets held at PSI and,
therefore, varies weekly according to interest rates, trading performance,
contributions and redemptions. Interest income increased by $274,000 during 2000
as compared to 1999 and increased by $745,000 during 1999 as compared to 1998.
The 2000 increase resulted from higher overall interest rates in 2000 versus
1999 and the slight increase in average net asset levels during 2000 versus 1999
as discussed above. The increase in interest income during 1999 versus 1998 was
due primarily to significantly higher average net asset levels during 1999
versus 1998 as discussed above.

   Commissions are calculated on Series B's net asset value at the end of each
week and therefore, vary according to weekly trading performance, contributions
and redemptions. Commissions increased by $25,000 during 2000 as compared to
1999 and increased $1,166,000 during 1999 as compared to 1998. These increases
resulted from fluctuations in average net asset levels as discussed above.

   All trading decisions for Series B are made by Eclipse Capital Management,
Inc. (the 'Trading Advisor'). Management fees are calculated on Series B's net
asset value at the end of each week and therefore, are affected by weekly
trading performance, contributions and redemptions. Management fees increased by
$5,000 during 2000 as compared to 1999 and increased by $302,000 during 1999 as
compared to 1998. These increases resulted from fluctuations in average net
asset levels as discussed above.

   Incentive fees are based on the New High Net Trading Profits generated by the
Trading Advisor, as defined in the Advisory Agreement among the Series B, the
Managing Owner and the Trading Advisor. Incentive fees were approximately
$459,000 and $201,000 for the year ended December 31, 1999 and the period from
June 10, 1998 (commencement of operations) to December 31, 1998, respectively.
Series B did not incur an incentive fee during 2000.

New Accounting Guidance

   In June 2000, FASB issued Statement No. 138, Accounting for Certain
Derivative Instruments and Certain Hedging Activities--an amendment of FASB
Statement No. 133 ('SFAS 138'), which became effective for Series B on July 1,
2000. SFAS 138 amends the accounting and reporting standards of FASB Statement
No. 133 for certain derivative instruments and certain hedging activities. SFAS
138 has not had a material effect on the carrying value of assets and
liabilities within the financial statements.

Inflation

   Inflation has had no material impact on operations or on the financial
condition of Series B from inception through December 31, 2000.

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                               OTHER INFORMATION

   The actual round-turn equivalent of brokerage commissions paid per contract
for the year ended December 31, 2000 was $60.

   Series B's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission is available to limited owners without charge upon written
request to:

        World Monitor Trust--Series B
        P.O. Box 2016
        Peck Slip Station
        New York, New York 10272-2016

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