Smith Barney Mid-West Futures Fund L.P. II
                          Notes to Financial Statements
                                  June 30, 2004
                                   (Unaudited)
                                   (Continued)

The  Master's  Statements  of Financial  Condition  and  Condensed  Schedules of
Investments  at June 30, 2004 and December 31, 2003 and its Statements of Income
and Expenses and Members' Capital and Statements of Cash Flows for the three and
six months ended June 30, 2004 and 2003 were:


                    JWH Strategic Allocation Master Fund LLC
                        Statements of Financial Condition
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                           <C>                  <C>
                                                            June 30,     December 31,
                                                             2004           2003
                                                         ------------    ------------
Assets:
Equity in commodity futures trading account:
  Cash (restricted $31,772,804 and $31,852,745 in 2004
   and 2003, respectively)                                $155,073,201   $131,979,502
  Net unrealized appreciation on open futures positions             --      1,477,101
  Unrealized appreciation on open forward contracts          2,938,642     13,496,013
  Interest receivable                                          148,989         80,717
                                                          ------------   ------------
                                                          $158,160,832   $147,033,333
                                                          ============   ============
Liabilities and Members' Capital:
Liabilities:
  Net unrealized depreciation on open futures positions   $  5,268,908   $         --
  Unrealized depreciation on open forward contracts         10,323,944      1,799,594
Accrued Expenses:
   Professional fees                                            86,405         76,405
   Distribution payable                                        148,989         80,717
                                                          ------------   ------------
                                                            15,828,246      1,956,716
                                                          ------------   ------------
Members' Capital:
Members' capital, 104,820.3576 and 86,435.1829 Units
 outstanding in 2004 and 2003, respectively                142,332,586    145,076,617
                                                          ------------   ------------
                                                          $158,160,832   $147,033,333
                                                          ============   ============
</TABLE>


                                       8



<PAGE>


                   Smith Barney Mid-West Futures Fund L.P. II
                          Notes to Financial Statements
                                  June 30, 2004
                                   (Unaudited)
                                   (Continued)

                    JWH Strategic Allocation Master Fund LLC
             Statements of Income and Expenses and Members' Capital
                                   (Unaudited)


<TABLE>
<CAPTION>
<S>                                                     <C>           <C>              <C>             <C>
                                                        Three Months Ended                Six Months Ended
                                                            June 30,                          JUNE 30,
                                                  ------------------------------    -----------------------------
                                                      2004              2003              2004           2003
                                                  ------------------------------    -----------------------------
Income:
   Net gains (losses) on trading of commodity
    interests:
   Realized gains (losses) on closed positions
    and foreign currencies                       $ (30,580,263)   $   1,863,361    $  (7,699,592)   $  31,202,079
   Change in unrealized gains (losses) on open
    positions                                      (14,418,038)      (8,596,738)     (25,827,730)     (21,771,283)
   Interest income                                     402,630          324,300          726,794          575,839
                                                 -------------    -------------    -------------    -------------
                                                   (44,595,671)      (6,409,077)     (32,800,528)      10,006,635
                                                 -------------    -------------    -------------    -------------
Expenses:
   Clearing fees                                       146,544          109,757          263,244          172,906
   Other expenses                                       15,000           15,000           30,000           30,000
                                                 -------------    -------------    -------------    -------------
                                                       161,544          124,757          293,244          202,906
                                                 -------------    -------------    -------------    -------------
   Net income (loss)                               (44,757,215)      (6,533,834)     (33,093,772)       9,803,729
   Additions                                        20,545,500       53,282,545       37,442,000       54,982,545
   Redemptions                                      (2,874,512)      (4,818,603)      (6,365,465)      (7,729,873)
   Distribution of Interest to feeder funds           (402,630)        (324,300)        (726,794)        (575,839)
                                                 -------------    -------------    -------------    -------------
   Net (decrease) increase in Members' capital     (27,488,857)      41,605,808       (2,744,031)      56,480,562
Members' capital, beginning of period              169,821,443      105,334,169      145,076,617       90,459,415
                                                 -------------    -------------    -------------    -------------
Members' capital, end of period                  $ 142,332,586    $ 146,939,977    $ 142,332,586    $ 146,939,977
                                                 =============    =============    =============    =============
Net asset value per Redeemable Unit
 (104,820.3576 and 84,964.7936 Units
 outstanding at June 30, 2004 and
 2003, respectively)                             $    1,357.87    $    1,729.42    $    1,357.87    $    1,729.42
                                                 =============    =============    =============    =============
Net income (loss) per Unit of Member Interest    $     (449.47)   $      (21.42)   $     (320.57)   $      246.93
                                                 =============    =============    =============    =============
</TABLE>


                                       11


<PAGE>

                   Smith Barney Mid-West Futures Fund L.P. II
                          Notes to Financial Statements
                                  June 30, 2004
                                   (Unaudited)
                                   (Continued)


                            JWH Strategic Allocation
                                 Master Fund LLC
                            Statements of Cash Flows
                                  June 30, 2004
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                              <C>            <C>             <C>           <C>
                                                               Three Months Ended                 Six Months Ended
                                                                     June 30,                        June 30,
                                                           ----------------------------     ----------------------------
                                                               2004            2003            2004            2003
                                                           --------------- ------------     ---------------------------
Cash flows from operating activities:
  Net income (loss)                                        $(44,757,215)   $ (6,533,834)  $ (33,093,772)   $  9,803,729
  Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
     Changes in operating assets and liabilities:
       Net unrealized appreciation on open futures
        positions                                            19,573,481       4,815,978       6,746,009      10,096,495
       Unrealized appreciation (depreciation) on open
        forward contracts                                     7,294,771        (872,819)     10,557,371       3,676,940
       (Increase) decrease in interest receivable              (272,452)       (324,300)       (321,913)        637,785

       Unrealized appreciation (depreciation) on open
        forward contracts                                   (12,450,213)      4,653,580       8,524,350       7,997,848
      Accrued expenses:
       Increase in professional fees                             12,944          13,600          10,000          28,600
      Increase (decrease) in distribution payable               272,452         324,300         321,913        (637,785)
                                                            ------------     ----------      ----------      ----------
             Net cash provided (used in) by operating
               activities                                   (30,326,232)      2,076,505      (7,256,042)     31,603,612
                                                            ------------     ----------      -----------     ----------

Cash flows from financing activities:
  Proceeds from additions                                    20,545,500      53,282,545      37,442,000      54,982,545
  Payments for redemptions                                   (2,874,512)     (4,818,603)     (6,365,465)     (7,729,873)
  Distribution of Interest to Feeder Funds                     (402,630)       (324,300)       (726,794)       (575,839)
                                                            ------------    ------------    -----------      -----------
             Net cash provided by (used in) by financing
               activities                                    17,268,358      48,139,642      30,349,741      46,676,833
                                                            -----------     -----------     -----------      ----------
             Net change in cash                             (13,057,874)     50,216,147      23,093,699      78,280,445
             Cash, at beginning of period                   168,131,075     109,176,581     131,979,502      81,112,283
                                                            -----------     -----------     -----------     -----------
             Cash, at end of period                       $ 155,073,201   $ 159,392,728   $ 155,073,201   $ 159,392,728
                                                            ===========     ===========     ===========     ===========
</TABLE>



                                       12


<PAGE>



                   Smith Barney Mid-West Futures Fund L.P. II
                          Notes to Financial Statements
                                  June 30, 2004
                                   (Unaudited)
                                   (Continued)


Financial Highlights of the Master:

         Changes in net asset value per Unit for the three months and six months
ended June 30, 2004 and 2003 were as follows:


<TABLE>
<CAPTION>
<S>                                                     <C>          <C>        <C>           <C>
                                                       Three Months Ended          Six Months Ended
                                                             June 30,                 June 30,
                                                   ----------------------     ----------------------
                                                      2004          2003         2004         2003
                                                   -----------------------     ---------------------

Net realized and unrealized gains (losses)*        $ (449.32)   $  (25.68)   $ (320.26)   $  238.76
Interest income                                         4.01         4.50         7.55         8.66
Expenses**                                             (0.15)       (0.24)       (0.31)       (0.49)
                                                    --------      -------     ---------    ---------
Increase (decrease) for the period                   (445.46)      (21.42)     (313.02)      246.93
Distributions                                          (4.01)       (4.50)       (7.55)       (8.66)
Net Asset Value per Unit, beginning of period       1,807.34     1,755.34     1,678.44     1,491.15
                                                    --------      -------     ---------    ---------
Net Asset Value per Unit, end of period           $ 1,357.87   $ 1,729.42   $ 1,357.87   $ 1,729.42
                                                   =========    =========     ========     =========

* Includes clearing fees.
 ** Excludes clearing fees.
                                                         Three Months Ended                Six Months Ended
                                                              June 30,                        June 30,
                                                       ----------------------           ----------------------
                                                         2004          2003                2004         2003
                                                      -----------------------            ---------------------

Ratio to average net assets:***
   Net investment income                                  0.6%            0.6%              0.5%         0.6%
                                                         =======        ======           =======        ======

   Operating expenses ****                                0.4%            0.1%              0.4%         0.1%
                                                         =======        ======           =======        ======

Total return:                                           (24.7)%          (1.2)%           (18.7)%        16.6%
                                                        =======         ======           =======        ======
</TABLE>

*** Annualized
**** Excludes clearing fees


The  above  ratios  may vary for  individual  investors  based on the  timing of
capital transactions during the period.


                                       14
<PAGE>
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

Liquidity and Capital Resources

     The Partnership does not engage in the sale of goods or services.  Its only
assets are its  investment in the Master and cash. The Master does not engage in
the sale of goods or services.  Its only assets are its investments in commodity
futures  and cash.  Because  of the low margin  deposits  normally  required  in
commodity  futures  trading,  relatively  small  price  movements  may result in
substantial  losses to the  Master.  While  substantial  losses  could lead to a
decrease in liquidity, no such losses occurred in the second quarter of 2004.

     The  Partnership's  capital  consists of the capital  contributions  of the
partners as increased or decreased by its  investment  in the Master,  expenses,
interest income,  redemptions of Redeemable Units and  distributions of profits,
if any.

     For the six months ended June 30, 2004, Partnership capital decreased 25.0%
from $25,854,335 to $19,382,723. This decrease was attributable to net loss from
operations of  $5,647,267,  coupled with the  redemption of 468.8800  Redeemable
Units of Limited  Partnership  Interest  resulting  in an  outflow of  $824,345.
Future  redemptions  can impact the amount of funds  available for investment in
the Master in subsequent periods.

     The Master's capital  consists of the capital  contributions of its members
as  increased  or decreased  by realized  and/or  unrealized  gains or losses on
commodity futures trading, expenses,  interest income, redemptions of Redeemable
Units and distributions of profits, if any.

     For the six months ended June 30, 2004 the Master's capital  decreased 1.9%
from  $145,076,617 to  $142,332,586.  This decrease was attributable to net loss
from  operations  of  $33,093,772,  coupled with the  redemption  of  3,751.7998
Redeemable  Units totaling  $6,365,465 and  the distribution of interest paid to
the feeders of $726,794 which was partially  offset by the  additional  sales of
22,136.9745  Redeemable  Units  resulting  in an inflow of  $37,442,000.  Future
redemptions  can  impact  the  amount  of funds  available  for  investments  in
commodity contract positions in subsequent periods.

Critical Accounting Policies

     The  preparation  of financial  statements  in conformity  with  accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and  liabilities,  revenues  and  expenses,  and related  disclosures  of
contingent  assets and  liabilities at the date of the financial  statements and
accompanying notes. Actual results could differ from these estimates.

     All commodity interests  (including  derivative  financial  instruments and
derivative commodity  instruments) are used for trading purposes.  The commodity
interests  are  recorded on trade date and open  contracts  are  recorded in the
statements of financial  condition at fair value on the last business day of the
period,  which represents  market value for those commodity  interests for which


                                       17