-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SiTKlZq00hI7BPRv4IJvuay13gagem2knyk8H0m77vE/V95cRA/AEVxU1nUbg7tk YaYb/a9/GLaHolHqbKXO6Q== 0000912057-00-003871.txt : 20000207 0000912057-00-003871.hdr.sgml : 20000207 ACCESSION NUMBER: 0000912057-00-003871 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ML PRINCIPAL PROTECTION LP CENTRAL INDEX KEY: 0000917259 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 133750642 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: SEC FILE NUMBER: 333-07593 FILM NUMBER: 523546 BUSINESS ADDRESS: STREET 1: 6TH FL, SOUTH TOWER, M L WORLD HDQR STREET 2: C/O ML FUTURES INVESTMENT PARTNERS INC CITY: NEW YORK STATE: NY ZIP: 10080-6106 BUSINESS PHONE: 2122364161 MAIL ADDRESS: STREET 1: C/O MERRILL LYNCH INVESTMENT PARTNERS IN STREET 2: WORLD FINANCIAL CENTER S TOWER 6TH FL CITY: NEW YORK STATE: NY ZIP: 10080-6106 FORMER COMPANY: FORMER CONFORMED NAME: ML PRINCIPAL PROTECTION PLUS LP DATE OF NAME CHANGE: 19940616 FORMER COMPANY: FORMER CONFORMED NAME: SECTOR STRATEGY FUND VII LP DATE OF NAME CHANGE: 19940107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ML PRINCIPAL PROTECTION TRADING LP CENTRAL INDEX KEY: 0000925433 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 133775509 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: SEC FILE NUMBER: 333-07593-01 FILM NUMBER: 523547 BUSINESS ADDRESS: STREET 1: ML INVESTMENT PARTNERS INC STREET 2: WORLD FINANCIAL CENTER S TOWER 6TH FL CITY: NEW YORK STATE: NY ZIP: 10080-6106 BUSINESS PHONE: 2122364167 MAIL ADDRESS: STREET 1: MERRILL LYNCH INVESTMENT PARTNERS STREET 2: WORLD FINANCIAL CENTER S TOWER 6TH FL CITY: NEW YORK STATE: NY ZIP: 10080-6106 FORMER COMPANY: FORMER CONFORMED NAME: ML PRINCIPAL PROTECTION PLUS TRADING LP DATE OF NAME CHANGE: 19940616 424B3 1 424B3 Filed Pursuant to Rule 424(b)(3) Registration Nos. 333-07593 333-07593-01 ML PRINCIPAL PROTECTION L.P. SUPPLEMENT DATED FEBRUARY 3, 2000 TO THE PROSPECTUS DATED MAY 7, 1999 In accordance with the rules of the Commodity Futures Trading Commission (the "CFTC"), this Supplement updates certain information contained in the Prospectus dated May 7, 1999 (the "Prospectus") of ML Principal Protection L.P. (the "Fund"). All capitalized terms used herein have the same meaning as in the Prospectus. Prospective investors in the Fund should review carefully the contents of both this Supplement and the Prospectus. This Supplement contains an updated version of the performance record of the Fund set forth on page 15 of the Prospectus and must be read in conjunction with the notes thereto on page 16 of the Prospectus. As January 1, 2000 has passed, the risk factor regarding Year 2000 Issues set forth on page 12 of the Prospectus and the related discussion set forth on page 23 have been updated as follows: "Although the advent of the Year 2000 proved to be uneventful for most computer functions, it is unclear that all the related systemic issues have been resolved. Furthermore, there appear to be other computer critical dates or events which could result in material disruptions to the computer programs employed by the Fund as well as by its service providers." * * * * * * * * * * All information in the Prospectus is hereby restated, except as updated hereby. -------------------------- NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. -------------------------- THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED UPON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED SELLING AGENT MERRILL LYNCH INVESTMENT PARTNERS INC. GENERAL PARTNER PERFORMANCE OF THE FUND The following are the monthly rates of return from the inception of the Fund through December 31, 1999. THERE CAN BE NO ASSURANCE THAT THE FUND WILL CONTINUE TO PERFORM IN THE FUTURE THE WAY IT HAS IN THE PAST. TYPE OF POOL: MULTI-ADVISOR; PUBLICLY-OFFERED/"PRINCIPAL PROTECTED" INCEPTION OF TRADING: OCTOBER 12, 1994 AGGREGATE SUBSCRIPTIONS: $164,976,175 CURRENT CAPITALIZATION: $41,682,768 WORST MONTHLY DRAWDOWN: (3.70)% (2/96) WORST PEAK-TO-VALLEY DRAWDOWN: (3.80)% (7/99-10/99) ------------- NET ASSET VALUE PER SERIES A UNIT, DECEMBER 31, 1999: $134.14 (adding back $22.50 in distributions)
- --------------------------------------------------------------------------------------------------------------------- MONTHLY RATES OF RETURN - --------------------------------------------------------------------------------------------------------------------- MONTH 1999 1998 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------------------------- January (1.09)% 0.07% 2.06% 2.45% (0.55)% -- - --------------------------------------------------------------------------------------------------------------------- February 0.84 (0.56) 1.44 (3.70) 2.24 -- - --------------------------------------------------------------------------------------------------------------------- March (0.52) 0.10 0.05 1.06 4.17 -- - --------------------------------------------------------------------------------------------------------------------- April 1.17 (1.96) (0.70) 3.10 0.91 -- - --------------------------------------------------------------------------------------------------------------------- May (1.30) 0.95 (1.43) (1.98) 1.20 -- - --------------------------------------------------------------------------------------------------------------------- June 1.19 (0.86) 0.70 1.36 (0.21) -- - --------------------------------------------------------------------------------------------------------------------- July 0.20 (0.67) 3.14 (1.68) (1.30) -- - --------------------------------------------------------------------------------------------------------------------- August (0.02) 4.83 (2.71) 0.49 0.95 -- - --------------------------------------------------------------------------------------------------------------------- September (0.91) 3.55 0.86 1.62 (0.32) -- - --------------------------------------------------------------------------------------------------------------------- October (2.90) 0.06 (0.43) 4.25 0.29 1.04% - --------------------------------------------------------------------------------------------------------------------- November 1.60 (1.00) 0.80 2.50 0.69 0.32 - --------------------------------------------------------------------------------------------------------------------- December 1.00 0.20 2.22 (0.20) 2.12 0.40 - --------------------------------------------------------------------------------------------------------------------- Compound Rate of (0.84)% 4.60% 6.01% 9.36% 10.55% 1.76% Return (2 2/3 months) - ---------------------------------------------------------------------------------------------------------------------
UNITS ISSUED UNDER THIS PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL INITIALLY ALLOCATE 100% OF THEIR ASSETS TO TRADING (SUBJECT TO POSSIBLE FUTURE DELEVERAGING). ALL UNITS ISSUED ON OR PRIOR TO MAY 1, 1997 COMMENCED TRADING WITH 60%, AND UNITS ISSUED AFTER MAY 1, 1997 WITH 75%, OF THEIR ASSETS ALLOCATED TO TRADING. BEGINNING MAY 1, 1998, UNITS ISSUED AFTER MAY 1, 1997 ALLOCATED 85% TO 95% OF THEIR ASSETS TO TRADING AND, AS OF JUNE 1, 1999, ALLOCATE 100% OF THEIR ASSETS TO TRADING (ALSO SUBJECT TO POSSIBLE FUTURE DELEVERAGING). CONSEQUENTLY, THE COMPOSITE PAST PERFORMANCE OF THE FUND MAY NOT BE REPRESENTATIVE OF HOW THE UNITS WOULD HAVE PERFORMED OVER THE SAME PERIOD. THE GREATER THE PERCENTAGE OF A SERIES' ASSETS ALLOCATED TO TRADING, THE GREATER THE RISK OF LOSS AS WELL AS THE PROFIT POTENTIAL. ------------------------- CUMULATIVE STATISTICS CORRELATION COEFFICIENT VS. S&P 500: 0.03 BETA VS. S&P 500: 0.01 SHARPE RATIO: 0.10 PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS - 1 - ACKNOWLEDGMENT OF RECEIPT OF THE ML PRINCIPAL PROTECTION L.P. SUPPLEMENT DATED FEBRUARY 3, 2000 TO THE PROSPECTUS DATED MAY 7, 1999 The undersigned hereby acknowledges that the undersigned has received a copy of the ML Principal Protection L.P. Supplement dated February 3, 2000 to the Prospectus dated May 7, 1999. A SIGNED COPY OF THIS ACKNOWLEDGMENT OF RECEIPT OF THE FEBRUARY 3, 2000 SUPPLEMENT AND THE SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY SIGNATURE PAGE FROM THE MAY 7, 1999 PROSPECTUS MUST BE RETURNED TO YOUR MERRILL LYNCH FINANCIAL CONSULTANT. INDIVIDUAL SUBSCRIBERS: ENTITY SUBSCRIBERS: -------------------------- ---------------------------- (Name of Entity) -------------------------- By: Signature of Subscriber(s) ------------------------- Title: ---------------------- (Trustee, partner or authorized officer) Dated: _____________, 2000 - 2 - -----END PRIVACY-ENHANCED MESSAGE-----