|   |  ML ALTIS      FUTURESACCESS LLC(A      Delaware Limited Liability Company)                                                                                                                          |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                      |   |
|   |   Financial      Statements for the year ended December 31, 2008 and for      the period April 2, 2007 (commencement of operations) to December      31, 2007 and Independent Auditor’s Report |   |

----

----

|                                                                                               |  Page    |
|----------------------------------------------------------------------------------------------------|---------------|
| INDEPENDENT      AUDITORS’ REPORT                                                            | 1             |
|                                                                                               |          |
| FINANCIAL      STATEMENTS:                                                                         |          |
|                                                                                               |          |
| Statements      of Financial Condition as of December 31, 2008 and 2007                            | 2             |
|                                                                                               |          |
| Statements      of Operations for the year ended December 31, 2008 and                             |          |
| for      the period April 2, 2007 (commencement of operations) to December 31,      2007           | 3             |
|                                                                                               |          |
| Statements      of Changes in Member’s Capital for the year ended December 31, 2008      and |          |
| for      the period April 2, 2007 (commencement of operations) to December 31,      2007           | 4             |
|                                                                                               |          |
| Financial      Data Highlights for the year ended December 31, 2008 and                            |          |
| for      period April 2, 2007 (commencement of operations) to December 31,      2007               |  5       |
|                                                                                               |          |
|  Notes      to Financial Statements                                                           |        7 |

----

----

|                                                                                                                                        |   | 2008   |        |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| ASSETS:                                                                                                                                     |   |   |        |   |   |   |
| Equity      in commodity futures trading accounts:                                                                                          |   |   |        |   |   |   |
|     Cash      (including restricted cash of $12,672,967 for 2008 and $4,525,486 for      2007)                          |   | $      | 87,195,883  |   |   | $      | 16,859,760 |   |
|     Net      unrealized profit (loss) on open contracts                                                                 |   |   | 13,434,337  |   |   |   | 2,107,998 |   |
| Cash                                                                                                                                        |   |   | 28,201      |   |   |   | 37,861 |   |
| Deferred      initial offering costs                                                                                                        |   |   | -           |   |   |   | 2,417 |   |
| Accrued      interest                                                                                                                       |   |   | 10,145      |   |   |   | 50,525 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|                 TOTAL      ASSETS                           |   | $      | 100,668,566 |   |   | $      | 19,058,561 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| LIABILITIES AND MEMBER'S      CAPITAL:                                                                                                      |   |   |        |   |   |   |   |   |
| LIABILITIES:                                                                                                                                |   |   |        |   |   |   |   |   |
|     Brokerage      commissions payable                                                                                  |   | $      | 45,317      |   |   | $      | 10,349 |   |
|     Management      fee payable                                                                                         |   |   | 199,274     |   |   |   | 35,713 |   |
|     Redemptions      payable                                                                                            |   |   | 22,933      |   |   |   | - |   |
|     Perfomance      fee payable                                                                                         |   |   | 6,801,659   |   |   |   | 605,453 |   |
|     Initial      offering costs payable                                                                                 |   |   | 10,000      |   |   |   | 10,000 |   |
|     Other                                                                                                               |   |   | 112,535     |   |   |   | 18,227 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|             Total      liabilities                                              |   |   | 7,191,718   |   |   |   | 679,742 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| MEMBER'S      CAPITAL:                                                                                                                      |   |   |        |   |   |   |   |   |
|   Member's      Interest (46,511,477 Units and 14,888,836 Units outstanding, unlimited      units authorized)                     |   |   | 93,476,848  |   |   |   | 18,378,819 |   |
|             Total      member's capital                                         |   |   | 93,476,848  |   |   |   | 18,378,819 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|                 TOTAL      LIABILITIES AND MEMBER'S CAPITAL |   | $      | 100,668,566 |   |   | $      | 19,058,561 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| NET      ASSET VALUE PER UNIT                                                                                                               |   | $      | 2.0098      |   |   | $      | 1.2344 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| See      notes to financial statements.                                                                                                     |   |   |        |   |   |   |   |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |

----

----

|                                                                                                     |   | 2008   |       |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| TRADING      PROFIT (LOSS):                                                                              |   |   |       |   |   |   |
|                                                                                                     |   |   |       |   |   |   |
|         Realized                                                 |   | $      | 26,605,234 |   |   | $      | 1,273,993 |   |
|         Change      in unrealized                                |   |   | 11,326,339 |   |   |   | 2,107,998 |   |
|         Brokerage      commissions                               |   |   | (328,239   | )      |   |   | (68,144 | ) |
|                                                                                                     |   |   |       |   |   |   |   |   |
|             Total      trading profit (loss) |   |   | 37,603,334 |   |   |   | 3,313,847 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| INVESTMENT      INCOME:                                                                                  |   |   |       |   |   |   |   |   |
|        Interest                                                       |   |   | 697,265    |   |   |   | 474,686 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| EXPENSES:                                                                                                |   |   |       |   |   |   |   |   |
|        Management      fee                                            |   |   | 1,141,904  |   |   |   | 214,966 |   |
|        Performance      fee                                           |   |   | 7,244,896  |   |   |   | 610,793 |   |
|        Other                                                          |   |   | 238,008    |   |   |   | 50,999 |   |
|             Total      expenses              |   |   | 8,624,808  |   |   |   | 876,758 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INVESTMENT INCOME (LOSS)                                                                        |   |   | (7,927,543 | )      |   |   | 402,072 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INCOME (LOSS)                                                                                   |   | $      | 29,675,791 |   |   | $      | 2,911,775 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INCOME (LOSS) PER UNIT:                                                                         |   |   |       |   |   |   |   |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
|     Weighted      average number of Units outstanding                                |   |   |       |   |   |   |   |   |
|      Class      DS(1)*                                                          |   |   | 33,650,409 |   |   |   | 12,367,586 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
|      Net      income (loss) per weighted average Unit                           |   |   |       |   |   |   |   |   |
|      Class      DS(1)*                                                          |   | $      | 0.8819     |   |   | $      | 0.2354 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| *Class      was previously known as Class D-SM.                                                          |   |   |       |   |   |   |   |   |
| See      notes to financial statements.                                                                  |   |   |       |   |   |   |   |   |
|                                                                                                     |   |   |       |   |   |   |   |   |

----

----

|                      |   |                  |       |   |        |   |      |          |   |   |                                    |   |   |   |       |   |   |   |       |                                    |   |
|---------------------------|--------|-----------------------|------------|--------|-------------|--------|-----------|---------------|--------|--------|-----------------------------------------|--------|--------|--------|------------|--------|--------|--------|------------|-----------------------------------------|--------|
|                      |   | Initial      Offering |       |   |        |   |      |          |   |   | Member's      Capital December 31, 2007 |   |   |   |       |   |   |   |       | Member's      Capital December 31, 2008 |   |
|                      |   | Subscriptions         |       |   | Redemptions |   |      | Subscriptions |   |   | Redemptions                             |   |
| Class      DS*            |   |                  | 12,000,000 |   |        |   | 3,208,646 |          |   |   | (319,810                                | )      |   |   | 14,888,836 |   |   |   | 36,307,705 |                                    |   |   | (4,685,064 | ) |   |   | 46,511,477 |   |
|                      |   |                  |       |   |        |   |      |          |   |   |                                    |   |   |   |       |   |   |   |       |                                    |   |   |   |   |   |   |   |   |
| Total      Member's Units |   |                  | 12,000,000 |   |        |   | 3,208,646 |          |   |   | (319,810                                | )      |   |   | 14,888,836 |   |   |   | 36,307,705 |                                    |   |   | (4,685,064 | ) |   |   | 46,511,477 |   |
|                      |   |                  |       |   |        |   |      |          |   |   |                                    |   |   |   |       |   |   |   |       |                                    |   |   |   |   |   |   |   |   |

|                        |   |                  |       |   |          |   |      |        |   |   |            |   |   |                                    |      |   |          |   |       |        |   |   |            |   |   |                                    |       |
|-----------------------------|--------|-----------------------|------------|--------|---------------|--------|-----------|-------------|--------|--------|-----------------|--------|--------|-----------------------------------------|-----------|--------|---------------|--------|------------|-------------|--------|--------|-----------------|--------|--------|-----------------------------------------|------------|
|                        |   | Initial      Offering |       |   | Subscriptions |   |      | Redemptions |   |   | Net      Income |   |   | Member's      Capital December 31, 2007 |      |   | Subscriptions |   |       | Redemptions |   |   | Net      Income |   |   | Member's      Capital December 31, 2008 |       |
| Class      DS*              |   |                  | 12,000,000 |   |          | $      | 3,812,206 |        |   | $      | (345,162        | )      |   | $                                       | 2,911,775 |   |          | $      | 18,378,819 |        |   | $      | 53,485,868      |   |   | $                                       | (8,063,630 | ) |   |   |   |   |   |   |
|                        |   |                  |       |   |          |   |      |        |   |   |            |   |   |                                    |      |   |          |   |       |        |   |   |            |   |   |                                    |       |   |   |   |   |   |   |   |
| Total      Member's Capital |   | $                     | 12,000,000 |   |          | $      | 3,812,206 |        |   | $      | (345,162        | )      |   | $                                       | 2,911,775 |   |          | $      | 18,378,819 |        |   | $      | 53,485,868      |   |   | $                                       | (8,063,630 | ) |   | $ | 29,675,791 |   |   | $ | 93,476,848 |   |

----

----

| Per Unit Operating      Performance:                    |   | Class      DS* |    |
|---------------------------------------------------------|--------|----------------|---------|
|                                                    |   |           |    |
| Net      asset value, beginning of period               |   | $              | 1.2344  |   |
|                                                    |   |           |    |   |
| Realized      & change in unrealized trading profit |   |           | 0.9909  |   |
| Brokerage      commissions                              |   |           | (0.0100 | ) |
| Interest      income                                    |   |           | 0.0235  |   |
| Expenses                                                |   |           | (0.2290 | ) |
|                                                    |   |           |    |   |
| Net      asset value, end of period                     |   | $              | 2.0098  |   |
|                                                    |   |           |    |   |
| Total Return:                                           |   |           |    |   |
|                                                    |   |           |    |   |
| Total      return before Performance fees               |   |           | 79.59   | % |
| Performance      fees                                   |   |           | -13.44  | % |
| Total      return after Performance fees                |   |           | 62.76   | % |
|                                                    |   |           |    |   |
| Ratios to Average Members'      Capital:                |   |           |    |   |
|                                                    |   |           |    |   |
| Expenses      (excluding Performance fees)              |   |           | 2.51    | % |
| Performance      fees                                   |   |           | 12.00   | % |
| Expenses      (including Performance fees)              |   |           | 14.51   | % |
|                                                    |   |           |    |   |
| Net      investment income (loss)                       |   |           | -12.88  | % |
|                                                    |   |           |    |   |
|                                                    |   |           |    |   |
| See      notes to financial statements.                 |   |           |    |   |
|                                                    |   |           |    |   |

----

----

| Per Unit      Operating Performance:                    |   | Class      DS* |    |
|---------------------------------------------------------|--------|----------------|---------|
|                                                    |   |           |    |
| Net      asset value, beginning of period               |   | $              | 1.0000  |   |
|                                                    |   |           |    |   |
| Realized      & change in unrealized trading profit |   |           | 0.2724  |   |
| Brokerage      commissions                              |   |           | (0.0055 | ) |
| Interest      income                                    |   |           | 0.0384  |   |
| Expenses                                                |   |           | (0.0709 | ) |
|                                                    |   |           |    |   |
| Net      asset value, end of period                     |   | $              | 1.2344  |   |
|                                                    |   |           |    |   |
| Total      Return:                                      |   |           |    |   |
|                                                    |   |           |    |   |
| Total      return before Performance fees               |   |           | 28.37   | % |
| Performance      fees                                   |   |           | -4.68   | % |
| Total      return after Performance fees                |   |           | 23.43   | % |
|                                                    |   |           |    |   |
| Ratios to      Average Members' Capital:                |   |           |    |   |
|                                                    |   |           |    |   |
| Expenses      (excluding Performance fees)              |   |           | 2.54    | % |
| Performance      fees                                   |   |           | 5.83    | % |
| Expenses      (including Performance fees)              |   |           | 8.37    | % |
|                                                    |   |           |    |   |
| Net      investment income (loss)                       |   |           | 3.83    | % |
|                                                    |   |           |    |   |
|                                                    |   |           |    |   |
| *Class      was previously known as Class SM-D.         |   |
|                                                    |   |           |    |   |
| See      notes to financial statements.                 |   |           |    |   |
|                                                    |   |           |    |   |

----

|        1. | SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES |
|----------------|-------------------------------------------------|

|   | Organization |
|--------|--------------|

|   | ML      Altis FuturesAccess LLC (the “Fund”), a Merrill Lynch FuturesAccess      Program (the “Program”) fund, was organized under the Delaware Limited      Liability Company Act on March 8, 2007 and commenced trading activities on      April 2, 2007. The Fund engages in the speculative trading of futures,      options on futures and forward contracts on a wide range of commodities.      Altis Partners (Jersey) Limited (“Altis”) is the trading advisor of the      Fund.  Merrill Lynch Alternative Investments LLC (“MLAI”) is the      Sponsor of the Fund. MLAI is an indirect wholly-owned subsidiary of      Merrill Lynch & Co., Inc. (“Merrill Lynch”). Merrill Lynch, Pierce,      Fenner & Smith Incorporated (“MLPF&S”), a wholly-owned subsidiary      of Merrill Lynch, is the Fund’s commodity broker. The Program is a group of commodity pools sponsored by MLAI (each      pool is a “Program Fund” or collectively, “Program Funds”) each of which      places substantially all of it assets in a managed futures or forward      trading account managed by a single or multiple commodity trading      advisors. Each Program Fund is generally similar in terms of fees, Classes      of Units and redemption rights.  Each of the Program Funds      implements a different trading strategy |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  Effective January 1, 2009, Merrill Lynch & Co., Inc. became      a wholly-owned subsidiary of Bank of America Corporation pursuant to a      merger agreement. Interests in the Fund are not insured or otherwise protected by the      Federal Deposit Insurance Corporation or any other government      authority.  Interests are not deposits or other obligations of,      and are not guaranteed by, Bank of America Corporation or any of its      affiliates or by any bank.  Interests are subject to investment      risks, including the possible loss of the full amount  invested. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Estimates |
|--------|-----------|

|   | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America (“U.S.      GAAP”) 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 Statements of Financial Condition      as the difference between the original contract value and the market value      (for those commodity interests for which market quotations are readily      available) or at fair value.  The change in unrealized profit      (loss) on open contracts from one period to the next is reflected in      Change in unrealized under Trading profit (loss) in the Statements of      Operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The      Fund’s functional currency is the U.S. dollar; however, it transacts      business in U.S. dollars and in currencies other than the U.S.      dollar.  Assets and liabilities denominated in currencies other      than the U.S. dollar are translated into U.S. dollars at the rates in      effect at the date of the Statements of Financial      Condition.  Income and expense items denominated in currencies      other than the U.S. dollar are translated into U.S. dollars at the rates      in effect during the period.  Gains and losses resulting from      the translation to U.S. dollars are reported in Realized in the Statements      of Operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash at      Broker |
|--------|---------------------|

|   | A      portion of the assets maintained at MLPF&S is restricted cash required      to meet maintenance margin requirements. Included      in cash deposits with the broker at December 31, 2008 and 2007 were      restricted cash for margin requirements of $12,672,967 and $4,525,486      respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Operating Expenses,      Offering Costs and SellingCommissions |
|--------|----------------------------------------------------------------|

|   | The      Fund pays for all routine operating costs (including ongoing offering      costs, administration, custody, transfer, exchange and redemption      processing, legal, regulatory filing, tax, audit, escrow, accounting and      printing fees and expenses) incurred by the Fund.  The Fund also      pays any extraordinary expenses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      financial reporting purposes in conformity with U.S. GAAP, the Fund      amortized the total initial offering costs of $10,000 over a twelve-month      period.  For all other purposes, including determining the Net      Asset Value per Unit for subscription and redemption purposes, the Fund      amortizes offering costs over a 60 monthperiod. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income      Taxes |
|--------|-------------------|

|   | No      provision for income taxes has been made in the accompanying financial      statements as the Member is individually responsible for reporting income      or loss based on such Member’s share of the Fund’s income and expenses as      reported for income tax purposes. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Distributions |
|--------|---------------|

|   | The      Member is entitled to receive, equally per Unit, any distributions which      may be made by the Fund.  No such distributions have been      declared for the year ended December 31, 2008 and for the period April 2,      2007 (commencement of operations) to December 31,  2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Subscriptions |
|--------|---------------|

|   | Units      are offered as of the close of business at the end of each      month.  Units are purchased as of the first business day of any      month at Net Asset Value for all other purposes, but the subscription      request must be submitted at least three calendar days before the end of      the preceding month.  Subscriptions submitted less than three      days before the end of a month will be applied to Units subscriptions as      of the beginning of the second month after receipt, unless revoked by      MLAI. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Redemptions and      Exchanges |
|--------|--------------------------------|

|   | A      Member may redeem or exchange some or all of such Member’s Units at Net      Asset Value for all other purposes (see Note 6) as of the close of      business, on the last business day of any month, upon ten calendar days’      notice (“notice period”). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | An      investor in the Fund can exchange these Units for Units of the same Class      in other Program Funds as of the beginning of each calendar month upon at      least ten days prior notice.  The minimum exchange amount is      $10,000. Redemption      requests are accepted within the notice period.  The Fund does      not accept any redemption requests after the notice period.  All      redemption requests received after the notice period will be processed for      the following month. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dissolution of the      Fund |
|--------|------------------------------|

|   | The Fund may terminate if certain circumstances occur      as set forth in the offering memorandum, which include but are not limited      to the following:(a)  Bankruptcy,      dissolution, withdrawal or other termination of the trading advisor of      this Fund.(b)  Any      event which would make unlawful the continued existence of this      Fund(c)  Determination      by MLAI to liquidate or withdraw from theFund. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Indemnifications |
|--------|------------------|

|   | In the normal course of business, the Fund enters into      contracts and agreements that contain a variety of representations and      warranties and which provide general indemnifications.  The      Fund’s maximum exposure under these arrangements is unknown, as this would      involve future claims that may be made against the Fund that have not yet      occurred.  The Fund expects the risk of any future obligation      under these indemnifications to be remote. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.   | CONDENSED      SCHEDULE OF INVESTMENTS |
|----------------|----------------------------------------|

|   | The      Fund’s investments, defined as Net unrealized profit (loss) on open      contracts in the Statement of Financial Condition as of December 31, 2008      and 2007 are as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2008                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
|-------------------------|--------|---------------------|--------|--------|---------------|--------|------------------|--------|--------|----------------------|--------|--------|---------------|--------|---------------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|----------------|
|                    |   | Long      Positions |   |   |          |   |             |   |   | Short      Positions |   |   |          |   | Net      Unrealized |   |   |               |   |   |             |
| Commodity      Industry |   | Number      of      |   |   | Unrealized    |   | Percent      of  |   |   | Number      of       |   |   | Unrealized    |   | Percent      of     |   |   | Profit      (Loss) |   |   | Percent      of  |   |   |           |
| Sector                  |   | Contracts           |   |   | Profit (Loss) |   | Member's Capital |   |   | Contracts            |   |   | Profit (Loss) |   | Member's Capital    |   |   | on Open Positions  |   |   | Member's Capital |   |   | Maturity Dates |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
| Agriculture             |   |                | 133    |   |          | $      | 348,576          |   |   | 0.37                 | %      |   |          | (1,041 | )                   |   | $      | 1,983,290          |   |   | 2.12             | %      |   | $              | 2,331,866 |   |   |   | 2.49 | % |   | January      09 - November 09 |
| Currencies              |   |                | 203    |   |          |   | 357,514          |   |   | 0.38                 | %      |   |          | (1,366 | )                   |   |   | 548,704            |   |   | 0.59             | %      |   |           | 906,218 |   |   |   | 0.97 | % |   | March      09 |
| Energy                  |   |                | -      |   |          |   | -                |   |   | 0.00                 | %      |   |          | (406   | )                   |   |   | 1,015,302          |   |   | 1.09             | %      |   |           | 1,015,302 |   |   |   | 1.09 | % |   | January      09 - October 09 |
| Interest      rates     |   |                | 2,265  |   |          |   | 6,560,867        |   |   | 7.02                 | %      |   |          | -      |                |   |   | -                  |   |   | 0.00             | %      |   |           | 6,560,867 |   |   |   | 7.02 | % |   | March      09 - June 10 |
| Metals                  |   |                | 120    |   |          |   | (798,776         | )      |   | -0.85                | %      |   |          | (451   | )                   |   |   | 3,184,806          |   |   | 3.40             | %      |   |           | 2,386,030 |   |   |   | 2.55 | % |   | January      09 - October 09 |
| Stock      indices      |   |                | 126    |   |          |   | 181,858          |   |   | 0.19                 | %      |   |          | (95    | )                   |   |   | 52,196             |   |   | 0.06             | %      |   |           | 234,054 |   |   |   | 0.25 | % |   | January      09 - November 09 |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |   |   |   |   |   |   |   |   |
| Total                   |   |                |   |   |          | $      | 6,650,039        |   |   | 7.11                 | %      |   |          |   |                |   | $      | 6,784,298          |   |   | 7.26             | %      |   | $              | 13,434,337 |   |   |   | 14.37 | % |   |   |

| 2007                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
|-------------------------|--------|---------------------|--------|--------|---------------|--------|------------------|--------|--------|----------------------|--------|--------|---------------|--------|---------------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|----------------|
|                    |   | Long      Positions |   |   |          |   |             |   |   | Short      Positions |   |   |          |   | Net      Unrealized |   |   |               |   |   |             |
| Commodity      Industry |   | Number      of      |   |   | Unrealized    |   | Percent      of  |   |   | Number      of       |   |   | Unrealized    |   | Percent      of     |   |   | Profit      (Loss) |   |   | Percent      of  |   |   |           |
| Sector                  |   | Contracts           |   |   | Profit (Loss) |   | Member's Capital |   |   | Contracts            |   |   | Profit (Loss) |   | Member's Capital    |   |   | on Open Positions  |   |   | Member's Capital |   |   | Maturity Dates |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |
| Agriculture             |   |                | 527    |   |          | $      | 1,223,885        |   |   | 6.66                 | %      |   |          | (218   | )                   |   | $      | (47,351            | )      |   | -0.25            | %      |   | $              | 1,176,534 |   |   |   | 6.40 | % |   | January      08 - November 08 |
| Currencies              |   |                | 75     |   |          |   | (21,280          | )      |   | -0.12                | %      |   |          | (70    | )                   |   |   | (62,215            | )      |   | -0.34            | %      |   |           | (83,495 | ) |   |   | -0.45 | % |   | March      08 |
| Energy                  |   |                | 119    |   |          |   | 348,016          |   |   | 1.89                 | %      |   |          | (93    | )                   |   |   | (99,209            | )      |   | -0.54            | %      |   |           | 248,807 |   |   |   | 1.35 | % |   | January      08 - October 08 |
| Interest      rates     |   |                | 381    |   |          |   | 322,171          |   |   | 1.75                 | %      |   |          | (436   | )                   |   |   | 88,717             |   |   | 0.48             | %      |   |           | 410,888 |   |   |   | 2.24 | % |   | March      08 - June 09 |
| Metals                  |   |                | 130    |   |          |   | 42,610           |   |   | 0.23                 | %      |   |          | (130   | )                   |   |   | 316,628            |   |   | 1.72             | %      |   |           | 359,238 |   |   |   | 1.95 | % |   | January      08 - October 08 |
| Stock      indices      |   |                | 64     |   |          |   | (44,683          |   |   | -0.24                | %      |   |          | (66    | )                   |   |   | 40,709             |   |   | 0.22             | %      |   |           | (3,974 | ) |   |   | -0.02 | % |   | January      08 - November 08 |
|                    |   |                |   |   |          |   |             |   |   |                 |   |   |          |   |                |   |   |               |   |   |             |   |   |           |   |   |   |   |   |   |   |   |
| Total                   |   |                |   |   |          | $      | 1,870,719        |   |   | 10.18                | %      |   |          |   |                |   | $      | 237,279            |   |   | 1.29             | %      |   | $              | 2,107,998 |   |   |   | 11.47 | % |   |   |

|   | No      individual contract’s unrealized profit or loss comprised greater than 5%      of the Member’s Capital as of December 31, 2008 and  2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        3. | FAIR VALUE OF    INVESTMENTS |
|----------------|------------------------------|

|                                                         |   | Total                               |   | Level      I |   | Level      II |   | Level      III              |
|--------------------------------------------------------------|--------|-------------------------------------|--------|--------------|--------|---------------|--------|-----------------------------|
| Net      unrealized profit      (loss) onopen      contracts |   |     $13,434,337 |   | $13,434,337  |   | N/A           |   |     N/A |

----

|        4. | RELATED      PARTYTRANSACTIONS |
|----------------|--------------------------------|

|   | The      Fund’s U.S. dollar assets are maintained at MLPF&S. On assets held in      U.S. dollars, Merrill Lynch credits the Fund with interest at the most      favorable rate payable by MLPF&S to accounts of Merrill Lynch      affiliates but not less than 75% of such prevailing rate.  The      Fund is credited with interest on any of its assets and net gains actually      held by MLPF&S non-U.S. dollar currencies at a prevailing local rate      received by Merrill Lynch.  Merrill Lynch may derive certain      economic benefit, in excess of the interest which Merrill Lynch pays to      the Fund, from possession of suchassets. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Merrill      Lynch charges the Fund at prevailing local interest rates for financing      realized and unrealized losses on the Fund’s non-U.S. dollar-denominated      positions. Such amounts are netted against interest income due to the      insignificance of such amounts. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Fund’s Class A Units pay Sponsor fees to MLAI at a flat monthly rate equal      to 0.125% (a 1.50% annual rate) of the Class’ month-end net assets, Class      C Units pay Sponsor fees to MLAI at a flat monthly rate equal to 0.2083%      (a 2.50% annual rate) of the Class’ month-end net assets, Class I Units      pay Sponsor fees to MLAI at a flat monthly rate equal to 0.0917% (a 1.10%      annual rate) of the Class’ month-end net assets.  Class D and      Class DS units do not pay Sponsor fees. Only Class DS Units have been      issued as of December 31, 2008 and 2007 therefore no Sponsor fees have      been paid by the Fund. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Fund pays brokerage commissions on actual cost per      round-turn.  The average round-turn commission rate charged to      the Fund for the year ended December 31, 2008 and 2007 was approximately      $17.31 and $10.57 (not including, in calculating round-turn, forward      contracts on a futures-equivalentbasis). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Fund pays Altis annual management fees of 2.00% of the Fund’s average      month-end net assets allocated to them after reduction for the brokerage      commissions accrued with respect to such assets.  MLAI receives      50% of the 2.00% management fee for sponsoring and providing ongoing      administration and operational support of the  Fund. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        5. | ADVISORY      AGREEMENT |
|----------------|-------------------------|

|   | The      Fund and Altis have entered into an Advisory Agreement. This agreement      shall continue in effect until December 31, 2016.  Thereafter,      this agreement shall be automatically renewed for successive three-year      periods, on the same terms, unless terminated at any time by either Altis      or the Fund upon 90 days’ written notice to the other      party.  Altis determines the commodity futures, options on      futures and forward contract trades to be made on behalf of their      respective Fund accounts, subject to certain trading policies and to      certain rights reserved byMLAI. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Performance      fees paid by the Fund are calculated as 20% of any New Trading Profit, as      defined, and are recognized by Altis as of either the end of each calendar      year or upon the net reallocation of assets away from      Altis.  Performance fees are also paid out in respect of Units      redeemed as of the end of interim months, to the extent of the applicable      percentage of any New Trading Profit attributable to such      Units. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        6/ | NET      ASSET VALUE PER UNIT |
|----------------|-------------------------------|

|   | For      financial reporting purposes, in conformity with U.S. GAAP, the Fund      amortizes over a twelve-month period the initial offering costs for      purposes of determining Net Asset Value. Such costs initially were paid by      MLAI.  For all other purposes, including computing Net Asset      Value for purposes of member subscription and redemption activity, such      costs are amortized over 60 months. Consequently, the Net Asset Value and      Net Asset Value per Unit of the different Classes for financial reporting      purposes and for all other purposes as of December 31, 2008 and 2007 are      as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   |                                |       |  Net      Asset Value |   |                     |   |       |                 |   |   |                                     |   | Net      Asset Value per Unit |   |                     |   |
|---------------|--------|-------------------------------------|------------|----------------------------|--------|--------------------------|--------|------------|----------------------|--------|--------|------------------------------------------|--------|-------------------------------|--------|--------------------------|--------|
|          |   | All      Other Purposes (unaudited) |       |                       |   | Financial      Reporting |   |       | Number      of Units |   |   | All      Other Purposes (unaudited) |   |                          |   | Financial      Reporting |   |
| Class      DS |   | $                                   | 93,483,991 |                       |   |                     | $      | 93,476,848 |                 |   |   | 46,511,477                               |   |                          |   | 2.0099                   |   |   |   |   | .0098 |   |
|          |   |                                |       |                       |   |                     |   |       |                 |   |   |                                     |   |                          |   |                     |   |   |   |   |   |   |
|          |   |                                |       |                       |   |                     |   |       |                 |   |   |                                     |   |                          |   |                     |   |   |   |   |   |   |

|          |   |                                |             |  Net      Asset Value |   |                     |   |       |                 |   |   |                                     |   | Net      Asset Value per Unit |   |                     |   |
|---------------|--------|-------------------------------------|------------------|----------------------------|--------|--------------------------|--------|------------|----------------------|--------|--------|------------------------------------------|--------|-------------------------------|--------|--------------------------|--------|
|          |   | All      Other Purposes (unaudited) |             |                       |   | Financial      Reporting |   |       | Number      of Units |   |   | All      Other Purposes (unaudited) |   |                          |   | Financial      Reporting |   |
| Class      DS |   | $                                   |  18,384,903 |                       |   |                     | $      | 18,378,819 |                 |   |   | 14,888,836                               |   |                          |   | 1.2348                   |   |   |   |   | 1.2344 |   |
|          |   |                                |             |                       |   |                     |   |       |                 |   |   |                                     |   |                          |   |                     |   |   |   |   |   |   |

|        7. | WEIGHTED      AVERAGE UNITS |
|----------------|-----------------------------|

|   | The      weighted average number of Units outstanding for each Class is computed      for purposes of calculating net income per weighted average      Unit.  The weighted average number of Units outstanding for each      Class for the period ended December 31, 2008 and 2007 equals the Units      outstanding as of such date, adjusted proportionately for Units sold or      redeemed based on the respective length of time each was outstanding      during the period. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        8. | RECENT      ACCOUNTINGPRONOUNCEMENTS |
|----------------|--------------------------------------|

|   | In      March 2008, the FASB released Statement of Financial Accounting Standards      No. 161, Disclosures about Derivative Instruments and Hedging Activities –      an amendment to FASB Statement No. 133 (“FAS 161”). FAS 161 requires      qualitative disclosures about objectives and strategies for using      derivatives, quantitative disclosures about fair value amounts of and      gains and losses on derivative instruments, and disclosures about      credit-risk related contingent features in derivative agreements. The      application of FAS 161 is required for fiscal years beginning after      November 15, 2008 and interim periods within those fiscal years.      Currently, the Fund is evaluating the implications of FAS 161 on its      financial statements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      May 2008, the FASB issued Statement of Financial Accounting Standards No.      162, “The Hierarchy of      Generally Accepted Accounting Principles” (“FAS 162”). FAS 162      identifies the sources of accounting principles and the |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | framework      for selecting the accounting principles used in preparing financial      statements of nongovernmental entities that are presented in conformity      with U.S. GAAP. Currently, U.S. GAAP hierarchy is provided in the American      Institute of Certified Public Accountants U.S. Auditing Standards (“AU”)      Section 411, “The      Meaning of Present Fairly in Conformity With Generally Accepted Accounting      Principles”. The Fund does not expect the adoption of FAS 162 to      have an impact on its financial  statements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        9. | MARKET      AND CREDIT RISK |
|----------------|-----------------------------|

|   | The      nature of this Fund has certain risks, which cannot all be presented on      the financial statements.  The following summarizes some of      those risks. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Market      Risk |
|--------|------------------|

|   | Derivative      instruments involve varying degrees of market risk.  Changes in      the level or volatility of interest rates, foreign currency exchange rates      or the market values of the financial instruments or commodities      underlying such derivative instruments frequently result in changes in the      Fund’s net unrealized profit (loss) on open contracts on such derivative      instruments as reflected in the Statements of Financial      Condition.  The Fund’s exposure to market risk is influenced by      a number of factors, including the relationships among the derivative      instruments held by the Fund as well as the volatility and liquidity of      the markets in which the derivative instruments are      traded.  Investments in foreign markets may also entail legal      and political risks. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | MLAI      has procedures in place intended to control market risk exposure, although      there can be no assurance that they will, in fact, succeed in doing      so.  These procedures focus primarily on monitoring the trading      of Altis, calculating the Net Asset Value of the Fund as of the close of      business on each day and reviewing outstanding positions for      over-concentrations.  While MLAI does not intervene in the      markets to hedge or diversify the Fund’s market exposure, MLAI may urge      Altis to reallocate positions in an attempt to avoid      over-concentrations.  However, such interventions are expected      to be unusual.  It is expected that MLAI’s basic risk control      procedures will consist of the ongoing process of advisor monitoring, with      the market risk controls being applied  byAltis. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

|   | 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 provide clearinghouse      arrangements in which the collective credit (in some cases limited in      amount, in some cases not) of the members of the exchange is pledged to      support the financial integrity of the exchange.  In      over-the-counter transactions, on the other hand, traders must rely solely      on the credit of their respective individual      counterparties.  Margins, which may be subject to loss in the      event of a default, are generally required in exchange trading, and      counterparties may also require margin in the over-the-counter      markets. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      credit risk associated with these instruments from counterparty      nonperformance is the net unrealized profit on open contracts, if any,      included in the Statements of Financial Condition. The Fund attempts to      mitigate this risk by dealing exclusively with Merrill Lynch entities as      clearing brokers. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Fund, in its normal course of business, enters into various contracts,      with MLPF&S acting as its commodity broker.  Pursuant to the      brokerage arrangement with MLPF&S (which includes a netting      arrangement), to the extent that such trading results in receivables from      and payables to MLPF&S, these receivables and payables are offset and      reported as a net receivable or payable and included in Equity in      commodity futures trading accounts in the Statements of Financial      Condition. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----