-----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, WOkfV87scZ/408FXOHN6D7KygBSxnvh6oG2ebM1AmHS4P9p/RVA3H509nD8CWs9f veJoKl6CXaqxr5ilWbfezg== 0000950131-97-003945.txt : 19970616 0000950131-97-003945.hdr.sgml : 19970616 ACCESSION NUMBER: 0000950131-97-003945 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970613 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ML PRINCIPAL PROTECTION LP CENTRAL INDEX KEY: 0000917259 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES [6200] IRS NUMBER: 133750642 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-07593 FILM NUMBER: 97623363 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: 1933 Act SEC FILE NUMBER: 333-07593-01 FILM NUMBER: 97623364 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 MONTHLY REPORT MARCH 1997 Merrill Lynch Investment Partners Inc. [GRAPHIC APPEARS HERE] ML Principal Protection L.P. Monthly Statement March 1997 - ---------------------------- [LOGO] ML Principal Protection L.P. Dear Limited Partner, The Net Asset Value ("NAV") of ML Principal Protection L.P. (the "Fund") increased during March. Please see the accompanying summary financial information for the NAV of your series of Units. Trading results were mixed in March, as whipsaw conditions prevailed in several key markets, exemplified by the correction experienced in the U.S. equity market. Profitable trading for the Fund resulted from positions in agricultural commodities, interest rates and currencies. Losses were incurred in energy, metals and stock index trading. Despite increased volatility throughout March, agricultural commodity trading resulted in profits for the Fund, primarily through positions in soybeans, corn and coffee. Soybean prices trended mostly upward, reaching their highest level in over eight years, on continued strong demand and fears that inventories could fall to critically low levels before the next harvest. Corn prices were bolstered by the movement in soybean markets, as well as a U.S. Agriculture Department report of soaring exports. After dropping at mid-month, coffee futures rebounded as heavy buying by roasters reinforced expectations that supplies would tighten in coming weeks. Crude oil prices trended upward, early in March, on expectations of demand from refiners seeking to replenish low stock piles ahead of the peak summer driving season. Crude prices reversed later in the month, reflecting the impact of a winter which has been significantly warmer than normal. Similarly, heating oil prices peaked on March 19 before retreating for most of the remainder of the month. Unleaded gasoline prices also experienced similar volatility, despite their relative strengthening to crude oil prices due to gasoline inventories having failed to build to near normal levels. Positions in crude oil, heating oil and unleaded gas resulted in trading losses for the Fund. U.S. bond prices continued to trend downward throughout the month, amid reports showing the strength of the U.S. economy, adding to anticipation of an increase in interest rates by the U.S. Federal Reserve. On March 15, the Fed fulfilled investors' expectations and raised short-term interest rates for the first time in more than two years. French and German bonds moved similarly to U.S. bonds for much of March, until a reversal of their downward price movement near the end of the month. Despite losses in non-dollar interest rate trading, gains resulting from U.S. Treasury securities and Eurodollar deposits resulted in overall profits from interest rate trading. As of April 1, 1997, the Fund's assets were allocated as follows:
Trading Advisor % Allocation - --------------- ------------ Chesapeake Capital Corporation 11.40 John W. Henry & Company, Inc. 9.00 AIS Futures Management, Inc. 5.10 ARA Portfolio Management Company, L.L.C. 5.10 Graham Capital Management, L.P. 5.10 Trendstat Capital Management, Inc. 5.10 Hill Financial Group, Ltd. 4.50 Millburn Ridgefield Corporation 4.32 Quantitative Financial Strategies, Inc. 3.30 Range Wise, Inc. 3.00 Allied Irish Capital Management Ltd. 2.58 Fundamental Futures, Inc. 1.50 Cash 40.00 ------- 100.00%
1997 Year-to-Date Gross Total Trading Results* Thru March 31 Agriculture $1,525,154 Currencies 2,080,230 Energy (480,381) Financial Instruments (504,828) Metals 415,864 Stock Indices 357,947 ---------- Total $3,393,986
* Before reduction of any fees and charges As planned, effective March 31, 1997, the Fund paid the annual fixed-rate distribution to all Series C and Series G Unitholders in the amount of $3.50. In addition, the Fund paid discretionary distributions to all Series C and Series G Unitholders in the amounts of $4.00 and $3.50, respectively. The April 1, 1997 NAVs of the Series C and G Units are reduced by the amount of these distributions. Despite increased volatility and several trend reversals, most Advisors were able to minimize losses and in some cases generate profits through disciplined risk management. We look forward to increased profitability for the Fund as trends reemerge in key markets. Sincerely, John R. Frawley, Jr. President & Chief Executive Officer Merrill Lynch Investment Partners Inc. (General Partner) FOR THE EXCLUSIVE USE OF INVESTORS IN ML PRINCIPAL PROTECTION L.P. THIS MONTHLY REPORT IS NOT AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. AN OFFER CAN ONLY BE MADE BY A CURRENT PROSPECTUS, AS SUPPLEMENTED, TOGETHER WITH SUMMARY FINANCIAL INFORMATION FOR THE FUND CURRENT WITHIN 60 CALENDAR DAYS. THESE MATERIALS CONTAIN IMPORTANT INFORMATION CONCERNING RISK FACTORS, PERFORMANCE AND OTHER MATERIAL ASPECTS OF THE FUND AND MUST BE READ CAREFULLY BEFORE INVESTING. THIS MONTHLY REPORT MUST NOT BE REPRODUCED OR DISTRIBUTED IN ANY MANNER. FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ML Principal Protection L.P. March 31, 1997 Statement of Changes in Net Asset Value
Net Asset Value (693,263.25 Units) at February 28, 1997 $77,491,500 Net Income/(Loss) for March 1997 39,852 Less Redemptions of 12,952.64 Units (1,456,038) ----------- Net Asset Value (680,310.61 Units) at March 31, 1997 $76,075,314 =========== Net Asset Value at March 31, 1997 Series A Units $ 114.69* =========== Series B Units $ 111.59* =========== Series C Units $ 113.23* =========== Series D Units $ 112.04* =========== Series E Units $ 112.45* =========== Series F Units $ 106.58* =========== Series G Units $ 111.14 =========== Series H Units $ 110.31 ===========
*The Net Asset Value per Unit does not include the annual distributions paid to Unitholders. Statement of Income/(Loss)
March ------------ Revenues: Realized Profit/(Loss) $ 2,147,609 Change in Unrealized Profit/(Loss) (2,142,350) ----------- Total Trading Results 5,259 Interest Income 421,455 ----------- Total Revenues 426,714 Expenses: Brokerage Commissions 355,126 Administrative Fees 10,146 Allocation of New Profit Share 16,018 Organizational Expenses 6,642 ----------- Total Expenses 387,932 ----------- Net Income/(Loss) Before Minority Interest 38,782 ----------- Minority Interest 1,070 ----------- Net Income/(Loss) $ 39,852 ===========
========================================================================== To the best of the knowledge and belief of the undersigned the information contained in this report is accurate and complete. /s/ James M. Bernard James M. Bernard Chief Financial Officer Merrill Lynch Investment Partners Inc. Please notify the following of any address changes: Merrill Lynch Investment Partners Inc. Merrill Lynch World Headquarters South Tower World Financial Center New York, New York 10080-6106 -----END PRIVACY-ENHANCED MESSAGE-----