-----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, MXQWRpWb6NmWu1P0Ssm2ZSjsKUWyid28m1CyXLjsnxUkyv26CWLq2IuZtKEt17H+ tiAjY9xBP+301O0ff5FoAA== 0000950131-97-004310.txt : 19970708 0000950131-97-004310.hdr.sgml : 19970708 ACCESSION NUMBER: 0000950131-97-004310 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970707 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: 97636566 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: 97636567 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 MAY 1997 ML PRINCIPAL PROTECTION LP ML Principal Protection L.P. Dear Limited Partner, The Net Asset Value ("NAV") of ML Principal Protection L.P. (the "Fund") decreased during May. Please see the accompanying summary financial information for the NAV of your series of Units. Currency trading was unprofitable for most Advisors in the Fund during the month. In addition, losses were incurred in energy and stock index positions. Profitable trading for the Fund resulted from positions in agricultural commodities, interest rates and metals. In May, difficult trading conditions in foreign currency markets resulted in losses for the Fund. The Japanese yen appreciated suddenly during the month, surprising most market participants. The yen's dramatic move retraced roughly 30% of its decline versus the U.S. dollar during the past two years. Unlike the yen, the Deutsche mark's trading was range-bound, following some price appreciation early in the month. Canadian dollar trading proved to be quite volatile, as sharp price movements in both directions characterized that currency's trading pattern. In agricultural commodity trading, the coffee market continued its climb to new highs on continued tightness of supply. By month-end, coffee prices surged beyond three dollars a pound for the first time in twenty years, on the possibility of frost in Brazil and reports of poor crops in smaller coffee- producing countries. The phenomenal pace of U.S. corn plantings put new crop prices under pressure, as corn futures prices trended downward throughout the month. Similarly, wheat prices also fell on improved crop prospects, but in a more sudden manner than corn. Specifically, wheat prices fell sharply on May 12, as the U.S. Government predicted healthy harvests to ease one of the tightest supply situations in years. Although positions in wheat resulted in losses, coffee and corn futures resulted in trading profits. Equity markets worldwide experienced different degrees of volatility in May, and trading in stock index futures produced mixed results for the Fund. Despite rallying at times to new highs throughout the month, the U.S. stock market remained within a relatively narrow trading range. By contrast, Japanese equities experienced much more volatility than U.S. equities, following a surge of prices on May 6. In European equity markets, the German stock market experienced volatility, but drifted higher by month-end. Special Notice to Limited Partners Merrill Lynch Investment Partners Inc. ("MLIP") believes that it would be advantageous for its multiple advisor pools, including the Fund, to increase the flexibility of the Fund's leverage policy. Consequently, while the Fund's risk/reward objectives remain unchanged, beginning in June 1997 MLIP may from time to time direct certain individual Advisors to manage their Fund accounts as if they were managing up to 50% more equity than the actual capital allocated to them. This additional leverage is subject to the condition that the Fund as a whole will not trade as if it had in excess of 20% more equity than actual capital. It is not possible to predict the effect upleveraging may have, particularly given the Advisors' ongoing leverage adjustments to their own trading and the anticipated non-correlation of their strategies. Increasing leverage can generally be expected to increase profit potential, risk of loss and volatility of returns. The flat-rate fees charged to the Fund will not be affected by this leverage policy change. These fees will continue to be based on only the actual capital allocated to trading. Any change in leverage by MLIP of the Fund's trading will be reflected in the asset allocation tables included in Fund's monthly reports. As of June 1, 1997, the Fund's assets were allocated as follows:
Trading Advisor % Allocation - --------------- ------------ Chesapeake Capital Corporation 11.82 John W. Henry & Company, Inc. 9.32 AIS Futures Management, Inc. 5.28 ARA Portfolio Management Company, L.L.C. 5.28 Graham Capital Management, L.P. 5.28 Trendstat Capital Management, Inc. 5.28 Hill Financial Group, Ltd. 4.66 Millburn Ridgefield Corporation 4.47 Quantitative Financial Strategies, Inc. 3.42 Range Wise, Inc. 3.11 Allied Irish Capital Management Ltd. 2.67 Fundamental Futures, Inc. 1.55 Cash 37.86 ------ 100.00%
1997 Year-to-Date Gross Total Trading Results* Thru May 31
Agriculture $ 1,813,651 Currencies 1,159,288 Energy (631,983) Financial Instruments (1,261,723) Metals 453,516 Stock Indices 169,734 ----------- Total $ 1,702,483
*Before deduction of any fees and charges Despite increased market volatility and a major trend reversal in the currency markets, the diversified nature of the Fund helped control losses for the month. We look forward to the opportunity for improved profitability as more favorable market conditions return. 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 DAYS. THESE MATERIALS CONTAIN IMPORTANT INFORMATION ABOUT RISK FACTORS, PERFORMANCE AND OTHER ASPECTS OF THE FUND AND MUST BE READ CAREFULLY BEFORE INVESTING. FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THIS MONTHLY REPORT MUST NOT BE REPRODUCED OR DISTRIBUTED IN ANY MANNER.
ML Principal Protection L.P. May 31, 1997 Statement of Changes in Net Asset Value Net Asset Value (671,739.61 Units) at April 30, 1997 $ 73,847,400 Additions of 116,453.00 Units 11,645,300 Net Income/(Loss) for May 1997 (1,048,872) Less Redemptions of 33,042.40 Units (3,509,562) ------------- Net Asset Value (755,150.21 Units) at May 31, 1997 $ 80,934,266 ============= Net Asset Value at May 31, 1997 Series A Units $ 112.28* ============= Series B Units $ 109.25* ============= Series C Units $ 103.51* ============= Series D Units $ 109.68* ============= Series E Units $ 110.07* ============= Series F Units $ 104.33* ============= Series G Units $ 101.94* ============= Series H Units $ 107.98 ============= Series K Units $ 99.97 ============= * The Net Asset Value per Unit does not include the annual distributions paid to Unitholders. Statement of Income/(Loss) May ----------- Revenues: Realized Profit/(Loss) $ (675,605) Change in Unrealized Profit/(Loss) (492,936) ----------- Total Trading Results (1,168,541) Interest Income 383,333 ----------- Total Revenues (785,208) Expenses: Brokerage Commissions 356,005 Administrative Fees 10,171 Allocation of New Profit Share (86,991) Organizational Expenses 6,642 ----------- Total Expenses 285,827 ----------- Net Income/(Loss) Before Minority Interest (1,071,035) ----------- Minority Interest 22,163 ----------- Net Income/(Loss) $(1,048,872) ===========
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