<PAGE>
 
                                                                   EXHIBIT 13.01
 
       THE GROWTH AND GUARANTEE FUND L.P.
       (A DELAWARE LIMITED PARTNERSHIP)

       Consolidated Financial Statements for 
       the year ended December 31, 1995, and 
       Financial Statements for the years ended 
       December 31, 1995, 1994 and 1993
       and Independent Auditors' Report
<PAGE>
 
To:  The Limited Partners of THE GROWTH AND GUARANTEE FUND L.P. - SERIES A

The Growth and Guarantee Fund L.P. - Series A (the "Fund") ended its ninth
fiscal year of trading on December 31, 1995 with a Net Asset Value ("NAV") per
Unit of $186.57, representing an increase of 32.01% from the December 31, 1994
NAV per Unit of $141.33.  In 1995, the stock market, as measured by the Standard
& Poor's 500/(R)/ Stock Index (the "S&P 500"), increased 37.57%.

The design of the Fund allows investors the opportunity to participate in stock
market advances (as measured by the S&P 500) while protecting investors against
large losses through the "Downside Protection" feature of the Fund.  The
Protected Minimum NAV per Unit is $155.37 for the current Time Horizon, which
ends at the close of business on January 31, 1997  The Fund is structured to
provide a "New Profits Lock-In" in the event that the NAV per Unit increases by
10% or more during a given Time Horizon.  The Fund will experience a "New
Profits Lock-In" if the NAV per Unit reaches $189.89.

The Fund's goal is to capture a substantial portion of stock market increases.
Through an investment in the Fund, investors have the opportunity to participate
in any such advances.  At the same time, investors are protected through each
Time Horizon End Date.  Unitholders are able to participate in market increases
with the Protected Minimum NAV $155.37 per Unit through a Time Horizon ending
January 31, 1997.

1995 proved to be a outstanding year for the Fund.  As General Partner and
Trading Manager of the Fund, we continue to remain confident that the Fund is
well positioned to benefit from trading opportunities in 1996.  We look forward
to the new fiscal year and the trading opportunities it may bring.

                                        MERRILL LYNCH INVESTMENT PARTNERS INC.
                                        (General Partner)

      FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. 
       PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
 
<PAGE>
 
THE GROWTH AND GUARANTEE FUND L.P.
(A Delaware Limited Partnership)
 ------------------------------ 

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

                                                             Page
                                                             ----
 
INDEPENDENT AUDITORS' REPORT                                    1
 
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
 DECEMBER 31, 1995, AND FINANCIAL STATEMENTS FOR THE 
 YEARS ENDED December 31, 1994 AND 1993:

  Statements of Financial Condition                             2
 
  Statements of Operations                                      3
 
  Statements of Changes in Partners' Capital                    4
 
  Notes to Financial Statements                              5-10

<PAGE>
 
INDEPENDENT AUDITORS' REPORT
----------------------------


To the Partners of
  The Growth and Guarantee Fund L.P.

We have audited the accompanying statements of financial condition of The Growth
and Guarantee Fund L.P. (a Delaware limited partnership; the "Partnership") as
of December 31, 1995  (consolidated) and 1994, and the related statements of
operations and changes in partners' capital for each of the three years in the
period ended December 31, 1995 (consolidated with respect to 1995).  These
financial statements are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of The Growth and Guarantee Fund L.P. (a
Delaware limited partnership) as of December 31, 1995 (consolidated) and 1994
and the results of its operations for each of the three years in the period
ended December 31, 1995 (consolidated with respect to 1995) in conformity with
generally accepted accounting principles.



DELOITTE & TOUCHE LLP


January 26, 1996
New York,  New York

                                      -1-
<PAGE>
 
THE GROWTH AND GUARANTEE FUND L.P.
(A Delaware Limited Partnership)
 ------------------------------ 

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 1995 (CONSOLIDATED) AND 1994
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
 
 
ASSETS                                                        1995             1994
------                                                     -----------     -------------
                                                                           
<S>                                                        <C>              <C> 
Accrued interest                                           $    4,940      $      --
U.S. Government obligations                                 6,820,462         6,482,801
Equity in commodity futures trading accounts:                              
   Cash and options premiums                                1,985,376           738,208
   Net unrealized gain on open contracts                     (105,800)          405,176
                                                           ----------       ----------- 
                                                                           
   TOTAL                                                   $8,704,978      $  7,626,185
                                                           ==========       ===========
                                                          
LIABILITIES AND PARTNERS' CAPITAL                         
---------------------------------                         
                                                          
                                                          
LIABILITIES:                                              
 Redemptions payable                                       $   39,739      $   47,628
                                                           
 Administrative fees and brokerage                         
                                                           
 commissions payable                                           13,215          12,046
                                                           ----------       ----------- 

 Total liabilities                                             52,954          59,674
                                                           ----------       ----------- 
                                                       
 Minority Interest                                             28,942              --
                                                           ----------       ----------- 
PARTNERS' CAPITAL:                                     
 General Partner:                                      
 (680 and 680 units)                                          126,846          96,085
 Limited Partners:                                     
 (45,539 and 52,857 units)                                  8,496,236       7,470,426
                                                           ----------       ----------- 

 Total partners' capital                                    8,623,082       7,566,511
                                                           ----------       ----------- 

 TOTAL                                                     $8,704,978      $7,626,185
                                                           ==========       ===========  

NET ASSET VALUE PER UNIT                                      $186.57         $141.33
                                                           ==========       ===========  
</TABLE> 

See notes to financial statements.

                                      -2-
<PAGE>
 
THE GROWTH AND GUARANTEE FUND L.P.
(A Delaware Limited Partnership)
 ------------------------------
 
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1995 (CONSOLIDATED), 1994 AND 1993
--------------------------------------------------------------------------------

<TABLE> 
<CAPTION>  
                                                           1995                      1994            1993
                                                     ----------                ----------      ----------
<S>                                                  <C>                       <C>             <C> 
REVENUES:                                       
 Trading profit (loss):                         
 Realized:                                      
 Options and futures                                 $2,323,415                $ (327,699)     $  376,880
 U.S. Government obligations                             51,234                     3,471           5,627
 Change in unrealized:                          
 Options and futures                                   (510,976)                   49,200        (122,200)
 U.S. Government obligations                            143,640                  (122,603)         34,726
                                                     ----------                ----------      ---------- 
 Total trading results                                2,007,313                  (397,631)        295,033
                                                
 Interest income                                        407,304                   355,496         353,974
                                                     ----------                ----------      ---------- 
 Total revenues                                       2,414,617                   (42,135)        649,007
                                                     ----------                ----------      ---------- 
EXPENSES:                                       
 Brokerage commissions                                    4,225                     8,247           9,891
 Administrative fees                                    144,696                   142,881         164,052
                                                     ----------                ----------      ---------- 
 Total expenses                                         148,921                   151,128         173,943
                                                     ----------                ----------      ---------- 
INCOME BEFORE MINORITY                          
 INTEREST                                             2,265,696                  (193,263)        475,064
                                                
MINORITY INTEREST IN INCOME                             (12,942)                       --              --
                                                     ----------                ----------      ---------- 
NET INCOME (LOSS)                                    $2,252,754                $ (193,263)     $  475,064
                                                     ==========                ==========      ==========
NET INCOME (LOSS) PER UNIT OF                   
  PARTNERSHIP INTEREST:                         
                                                
  Weighted average number of Units              
  outstanding (Note 3)                                   49,591                    57,079          66,050
                                                     ==========                ==========      ========== 
  Weighted average net income (loss)            
  per Unit                                               $45.43                    $(3.39)          $7.19
                                                     ==========                ==========      ========== 
</TABLE> 

See notes to financial statements.

                                      -3-
<PAGE>
 
THE GROWTH AND GUARANTEE FUND L.P.
(A Delaware Limited Partnership)
 ------------------------------

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1995 (CONSOLIDATED), 1994 AND 1993
--------------------------------------------------------------------------------


                                          Limited       General            
                               Units      Partners      Partner       Total
                               ------   -----------     --------   ----------- 
PARTNERS' CAPITAL             
 DECEMBER 31, 1992             70,754   $ 9,585,114     $148,577   $ 9,733,691
                              
Redemptions                   (10,303)   (1,403,713)     (56,428)   (1,460,141)
                              
Net income                         --       468,803        6,261       475,064
                               ------   -----------     --------   -----------  
                              
PARTNERS' CAPITAL,            
 DECEMBER 31, 1993             60,451     8,650,204       98,410     8,748,614
                              
Redemptions                    (6,914)     (988,840)          --      (988,840)
                              
Net loss                           --      (190,938)      (2,325)     (193,263)
                               ------   -----------     --------   -----------
                              
PARTNERS' CAPITAL,            
 DECEMBER 31, 1994             53,537     7,470,426       96,085     7,566,511
                              
Redemptions                    (7,318)   (1,196,183)          --    (1,196,183)
                              
Net income                         --     2,221,993       30,761     2,252,754
                               ------   -----------     --------   -----------
                              
PARTNERS' CAPITAL,            
 DECEMBER 31, 1995             46,219   $ 8,496,236     $126,846   $ 8,623,082
                               ======   ===========     ========   ===========

See notes to financial statements

                                      -4-
<PAGE>
 
THE GROWTH AND GUARANTEE FUND L.P.
A Delaware Limited Partnership)
------------------------------ 

NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995 (CONSOLIDATED), 1994 AND 1993
--------------------------------------------------------------------------------

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    The Growth and Guarantee Fund L.P. (the "Partnership") was organized on
    January 21, 1987 under the Delaware Revised Uniform Limited Partnership Act
    and commenced trading activities on August 5, 1987. The Growth and Guarantee
    Fund Trading L.P. (the "Trading Partnership") was organized on and commenced
    trading activities on June 1, 1995. The Partnership engages in the
    speculative trading of stock index futures and options, attempting to
    replicate the performance of the S&P 500 Stock Index while assuring that the
    Units do not decline in value by more than 10% over the course of any one
    Time Horizon (a term defined in the Limited Partnership Agreement, generally
    18 months in duration). On June 1, 1995, the Partnership began trading
    through the Trading Partnership rather than directly. The formation of the
    "subsidiary" Trading Partnership has been used as a means of assuring, by
    isolating the necessary "reserve" assets from the risk of market loss, the
    10% ceiling on the maximum loss which the Partnership can experience during
    a Time Horizon. Leland O'Brien Rubinstein Associates Incorporated (the
    "Advisor") is the trading advisor of the Trading Partnership. Merrill Lynch
    Investment Partners Inc. (formerly, ML Futures Investment Partners Inc.)
    (the "General Partner"), a wholly-owned subsidiary of Merrill Lynch Group,
    Inc., ("Merrill Lynch") which in turn is a wholly-owned subsidiary of
    Merrill Lynch & Co., Inc., is the general partner of the Partnership and the
    Trading Partnership, and Merrill Lynch Futures Inc. ("MLF") , also an
    affiliate of Merrill Lynch, is the commodity broker of the Trading
    Partnership. The General Partner has agreed to maintain a general partner's
    interest of at least 1% of the total equity interest of the Partnership and
    the Trading Partnership. The Partnership is the sole Limited Partner of the
    Trading Partnership. The General Partner and each Limited Partner share in
    the profits and losses of the Partnership, and the General Partner and the
    Partnership share in the profits and losses of the Trading Partnership, in
    proportion to the interest in the Partnership and the Trading Partnership
    owned by each.

    The consolidated statements include the accounts of the Trading Partnership.
    All related transactions and intercompany balances between the Partnership
    and the Trading Partnership are eliminated in consolidation.

    The ownership by the General Partner in the Trading Partnership represents a
    minority interest when the financial results of the Trading Partnership are
    consolidated into those of the Partnership. The General Partner's share of
    the Trading Partnership's profits and losses is deducted from the
    Consolidated Statements of Operations, and the General Partner's interest in
    the Trading Partnership reduces partners' capital on the Consolidated
    Statements of Financial Condition and the Consolidated Statements of Changes
    in Partners' Capital.

    Estimates
    ---------

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
    statements and the

                                      -5-
<PAGE>
 
   reported amounts of revenues and expenses during the reporting period. Actual
   results could differ from those estimates.
 
   Revenue Recognition
   -------------------
 
   Commodity futures and option contracts and securities transactions are
   recorded on the trade date, and open contracts are reflected in the financial
   statements at their fair value on the last business day of the reporting
   period. The difference between the original contract amount and fair value is
   reflected in income as unrealized gain or loss. Fair value is based on quoted
   market prices. All commodity futures and options contracts are reflected at
   fair value in the financial statements.

   U.S. Government Obligations
   ---------------------------

   The Partnership invests a portion of its assets in U.S. Government
   securities. These investments are carried at fair value.

   Fees
   ----

   The Partnership pays a monthly administrative fee to the General Partner
   equal to 0.1458 of 1% of the Partnership's month-end Net Assets (a 1.75%
   annual rate). The General Partner pays, at no additional cost to the
   Partnership, ongoing quarterly fees of $0.0625 per Unit for offering and
   organizational costs. Prior to the change discussed under "Protected Minimum
   Net Asset Value," below, the General Partner also paid the following
   additional fees which were based on the Partnership's average month-end Net
   Assets: (i) monthly advisory fees to Aetna Capital Management, Inc. ("ACM")
   totaling, on an annual basis, 0.275 of 1% of the first $100 million and 0.125
   of 1% on amounts in excess of $100 million; (ii) monthly consulting fees to
   the Advisor totaling, on an annual basis, 0.04375 of 1% of the first $100
   million and 0.02 of 1% on amounts in excess of $100 million; and (iii)
   monthly insurance premiums to The Standard Fire Insurance Company totaling,
   on an annual basis, 0.375 of 1%. The General Partner currently pays the
   consulting fees described in (ii).

   The General Partner, at no additional expense to the Partnership, pays all
   normal ongoing administrative costs of the Partnership, such as legal,
   printing and accounting expenses.

   Protected Minimum Net Asset Value
   ---------------------------------

   The maximum permissible decrease in the Net Asset Value per Unit, as of the
   end of successive Time Horizons (a term defined in the Limited Partnership
   Agreement, generally 18 months in duration) is 10% of the Net Asset Value per
   unit as of the beginning of each such Time Horizon (the "Protected Minimum
   NAV"). The Partnership had entered into an agreement with Chase Manhattan
   Bank N.A. ("Chase") whereby a letter of credit issued by Chase served to
   ensure the Protected Minimum NAV. The letter of credit was issued in favor of
   State Street Bank and Trust Company of Connecticut, N.A., which served as the
   paying agent for the Limited Partners of the Partnership. The amounts of the
   letters of credit varied from time to time as a result of Units redeemed, or
   the occurrence of a New Profit Lock-In, as defined in the Letter of Credit
   and Reimbursement Agreement. The Letter of Credit expired in June 1994 and
   was not renewed. The Protected Minimum NAV for the Time Horizon ending
   November 19, 1996 is guaranteed by the U.S. Government obligations which are
   insulated from the risk of trading loss by the Partnership/Trading
   Partnership structure. The Partnership will also utilize a "downside
   protection" strategy which is designed to maximize profits while controlling
   the risk of major drawdowns. Avoiding

                                      -6-
<PAGE>
 
   significant losses is of particular importance to the Partnership's long-term
   prospects for profitability due to its "downside protection" feature.

   Income Taxes
   ------------

   No provision for income taxes has been made in the accompanying financial
   statements as each partner is individually responsible for reporting income
   or loss based on such partner's respective share of the Partnership's income
   and expenses as reported for income tax purposes.

   Redemptions
   -----------

   A Limited Partner may require the Partnership to redeem some or all of such
   Limited Partner's Units at 100% of Net Asset Value as of the last business
   day of any month, and at 100% of actual Net Asset Value plus any amounts due
   under the Protected Minimum NAV as of the last business day of any month
   which is also the last day of a Time Horizon, upon ten days' written notice
   to the General Partner.

   Dissolution of the Partnership
   ------------------------------

   The Partnership will terminate on December 31, 2007 or at an earlier date if
   certain conditions occur, as well as under certain circumstances as set forth
   in the Limited Partnership Agreement.

2. RELATED PARTY TRANSACTIONS

   The portion of the Partnership's assets (approximately 10% to 15%) which are
   not held by the Partnership in U.S. Government securities is invested in the
   Trading Partnership. The Trading Partnership's assets are not held in U.S.
   Government securities deposited with MLF or its affiliate, Merrill Lynch,
   Pierce, Fenner & Smith Incorporated ("MLPF&S"). As a means of approximating
   the interest rate which would be earned by the Trading Partnership had 100%
   of its Net Assets on deposit with MLF been invested in 91-day Treasury bills,
   MLF pays the Trading Partnership interest on its account equity on deposit
   with MLF at a rate of 0.5 of 1% per annum below the prevailing 91-day
   Treasury bill rate. During the years ended December 31, 1995, 1994 and 1993,
   MLF paid the Partnership approximately $49,000, $42,000 and $23,000 of
   interest, respectively. Any additional economic benefit derived from
   possession of the Partnership's assets accrues to MLF or its affiliates.

   The Partnership pays MLF brokerage commissions of $25.00 per each round-turn,
   which includes exchange clearing and NFA fees, on U.S. futures transactions
   executed by the Partnership.

3. WEIGHTED AVERAGE UNITS

   The weighted average number of Units outstanding was computed for purposes of
   disclosing net income/(loss) per weighted average Unit. The weighted average
   number of Units outstanding at December 31, 1995, 1994 and 1993 equals the
   Units outstanding as of such date, adjusted proportionately for Units
   redeemed based on the respective length of time each was outstanding during
   the preceding period.

                                     -7-
<PAGE>
 
4. FAIR VALUE AND OFF-BALANCE SHEET RISK

   The Partnership trades futures and options on stock indices. The
   Partnership's revenues by reporting category are as follows:

                             1995         
                     Total Trading Results
                     ---------------------
   Interest Rates          $  199,460     
   Stock Indices            1,807,853     
                     ---------------------
                                          
                           $2,007,313     
                     ===================== 

Market Risk
-----------

Derivative instruments involve varying degrees of off-balance sheet market risk,
and changes in the level or volatility of interest rates or the S&P 500 Stock
Index will result in changes in the Partnership's unrealized gain or loss on
such derivative instruments as reflected in the Statements of Financial
Condition as of the end of the period. The Partnership's exposure to market risk
is influenced by a number of factors which affect stock index levels.

Fair Value
----------

The derivative instruments traded by the Trading Partnership are marked to
market daily with the resulting unrealized gains or losses recorded in the
Statements of Financial Condition and the related income or loss reflected in
trading revenues in the Statements of Operations. The contract/notional values
of open contracts as of December 31, 1995 and 1994 were as follows:

<TABLE>
<CAPTION>
 
 
                        December 31, 1995                   December 31, 1994
                -----------------------------------------------------------------------
                   Commitment to    Commitment to    Commitment to      Commitment to
                 Purchase (Futures  Sell (Futures  Purchase (Futures    Sell (Futures
                     & Options        & Options        & Options          & Options
                ------------------  -------------  -----------------    ---------------
 
<S>                     <C>              <C>           <C>                 <C>
Stock Indices           $6,052,025       --            $3,747,050          $6,100
                ==================  =============  =================    ===============
</TABLE>

The majority of the Partnership's derivative financial instruments outstanding
at December 31, 1995, mature within one year.

                                      -8-
<PAGE>
 
The contract/notional value of exchange traded and open contracts as of December
31, 1995 were as follows (the Partnership does not trade non-exchange-traded
derivative instruments):

 
                     Commitment to     Commitment to
                   Purchase (Futures   Sell (Futures
                       & Options)        & Options)
                  ------------------   -------------
 
Exchange Traded        $6,052,025          --
                  ==================   =============
 

The average fair value of the derivative instruments held or issued as of the
end of each calendar month during the year ended December 31, 1995 was as
follows:


                     Commitment to     Commitment to
                   Purchase (Futures   Sell (Futures
                       & Options)        & Options)
                  ------------------   -------------

Stock Indices          $5,341,896        $156,385
                  ==================   =============


Credit Risk
-----------

The risks associated with exchange-traded contracts are typically perceived to
be less than those associated with over-the-counter transactions (non-exchange-
traded), because exchanges typically (but not universally) provide clearinghouse
arrangements in which the collective credit (in some cases limited in amount, in
some cases not) of the members of the exchange is pledged to support the
financial integrity of the exchange, whereas in over-the-counter transactions,
on the other hand, traders must rely solely on the credit of their respective
individual counterparties. Margins, which may be subject to loss in the event of
a default, are generally required in exchange trading, and counterparties may
require margin in the over-the-counter markets. The Partnership does not trade
off-exchange instruments.

The contract amounts in the above tables represent the extent of the Trading
Partnership's market exposure in the relevant class of derivative instruments.
Because the Partnership trades only exchange-traded instruments, it has no
counterparty risk. The Partnership also has credit risk because the sole broker
with respect to the Partnership is MLF. At December 31, 1995 and 1994,
$8,697,334 and $7,319,733 of these assets, respectively, were held in segregated
accounts.

                                        
The gross unrealized gain and the net unrealized gain (loss) on open contracts
as of Deember 31, 1995 were as follows:

                   Gross Unrealized  Net Unrealized
                         Gain          Gain (Loss)
                  -----------------  ---------------

Exchange-Traded           --           $(105,800)
                  =================  ===============

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

                                      -9-
<PAGE>
 
                To the best of the  knowledge and belief of the
                undersigned, the information contained in this
                       report is accurate and complete.



                               James M.  Bernard
                            Chief Financial Officer
                      The Growth and Guarantee Fund L.P.
                    Merrill Lynch Investment Partners Inc.

                                     -10-